SUNMART HOLDINGS LIMITED

(Incorporated in Singapore)
(Registration No. 200600432W)

DISCLAIMER AUDIT OPINION BY AUDITORS IN RESPECT OF FINANCIAL STATEMENTS

FOR FINANCIAL YEAR ENDED 31 DECEMBER 2011 (FY2011)

The Board of Directors of Sunmart Holdings Limited (the Company) wishes to announce that its
external Auditors, Messrs Ernst & Young LLP, has issued a disclaimer audit opinion in respect of its
financial statements for financial year ended 31 December 2011, details of which are set out in the
Independent Auditors Report dated 2 April 2013 (the Report) attached.
The Companys Annual Report for FY2011 containing the Independent Auditors Report and the
Companys consolidated financial statements for FY2011 will be despatched to shareholders and to
the Singapore Exchange Securities Trading Limited on 5 April 2013.

By Order of the Board

SUNMART HOLDINGS LIMITED

Ho Soo Hui
Company Secretary
4 April 2013

Independent Auditors Report

To the members of Sunmart Holdings Limited

Report on the Financial Statements

We were engaged to audit the accompanying consolidated financial statements of Sunmart Holdings Limited (the
Company) and its subsidiaries (collectively, the Group), set out on pages 24 to 65, which comprise the balance
sheets of the Group and the Company as at 31 December 2011, and the consolidated statement of comprehensive
income, statements of changes in equity of the Group and the Company and consolidated cash flow statement of the
Group for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting
Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a
reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions
are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit
and loss accounts and balance sheets and to maintain accountability of assets.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on conducting the audit in accordance
with Singapore Standards on Auditing. Because of the matter described in the Basis for Disclaimer of Opinion
paragraphs, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
Basis for Disclaimer of Opinion
Unverified transactions
During the course of audit, we have not been given sufficient documentation that will adequately support certain
transactions recorded in the accounting books of the subsidiaries of the Group. Accordingly, we are unable to
satisfy ourselves as to the nature and validity of these transactions, as well as their business rationale and veracity
of the related account balances. There were also no practicable audit procedures available to us to determine the
nature and validity of these transactions.
These transactions relate to various payments for renovation work on investment property and advances for purchase
of raw materials and machinery amounting to RMB292.6 million; sales transactions amounting to RMB13.6 million;
sales of raw materials and scrap materials amounting to RMB19.1 million; investment in a new business of RMB20.0
million and loan given to a local government authority of RMB11.5 million.
Because of the pervasive nature of the matters described above, we are not able to determine whether all events up
to the date of this report that may require adjustments of, or disclosures in the accompanying financial statements.
As disclosed in Note 1.2 to these financial statements, the Audit Committee has commissioned and appointed
Special Auditors to undertake an independent review of the Groups financial matters pertaining to the transactions
described above. As at the date of this report, the Special Auditors investigation is still on-going. Accordingly, we
cannot determine what adjustments, if any, may be required to be made and whether any further discrepancies
might be reported by the Special Auditors arising thereon which may have an impact on the accompanying financial
statements.

Independent Auditors Report

To the members of Sunmart Holdings Limited

Going concern
As disclosed in Note 2 to these financial statements, the Group is in a net current liabilities position of RMB19.5
million as at 31 December 2011, including secured bank loans due within the next 12 months of RMB189.4 million.
With cash and bank balances of RMB106.9 million as at 31 December 2011, the Group did not appear to have
sufficient funds to make the repayment.
The directors have prepared the financial statements on a going concern basis on the assumption that its bankers
will continue to provide financing and extend existing loans to the Group, as well as the ability of the Group to
generate positive cash flows from its operations. However, we have not been able to obtain sufficient audit evidence
to support this assumption. Consequently, we are not able to concur on the use of going concern assumption in
the preparation of these financial statements.
The eventual resolution of the above issues may have a material effect on the ability of the Group to operate as a
going concern. Furthermore, the findings of the Special Auditors may affect the continue availability of the existing
credit facilities from the creditor banks and this may affect the Groups ability to operate as a going concern.
Disclaimer of Opinion
Because of the significance of the matters described in the Basis for Disclaimer of Opinion paragraphs, we have
not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly,
we do not express an opinion on the financial statements.

Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly
kept in accordance with the provisions of the Act.

Ernst & Young LLP

Public Accountants and Certified Public Accountants
Singapore
2 April 2013