All day joint trials of 90 [2008] 3 Zhejiang spent all shareholders Inc.: We have audited the attached Zhejiang spent three Inc. (hereinafter referred to spend three shares) 2007 "on the annual fund-raising use ofbrass ball valve the special note."
First, the report users and the purpose of limiting the use of
The report spent only three shares of the annual report disclosure purposes and not for any other purpose. We agree that this report will be spent as the three annual report of the shares required documents, together with other documents submitted and disclosed.
Second, management's responsibility
Spent three shares management's responsibility is to provide real, legitimate, and integrity of the relevant material, according to the Shenzhen Stock Exchange "SME board listed companies to raise funds management rules" establishment "of the annual fund-raising use of the special note", and to ensure that its contents true, accurate, complete, and there is no record of false, misleading statements or material omissions.
Third, the responsibility of Registered Accountants
Our responsibility is to spend three shares in the management of the above-mentioned report prepared by independent forensic conclusions.
Fourth, the work outlined
According to the "China Registered Accountants other forensic operational guidelines of 3101 - historical financial information other than the audit or review forensic business" implementation of the provisions of the forensic business. The guidelines require that we plan and the implementation of forensic work, object to the forensic information is not free of material misstatement obtain reasonable assurance. In the identification process, we conducted a careful investigation, including the verification of the implementation of the accounting records, etc. We believe that the necessary procedures, and in accordance with the materials made by the professional judgement. We believe that our brass ball valve forensic work to express their views provide a reasonable basis.
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5. Forensic conclusions
We believe that the management of three shares spent on "the use of the annual fund-raising special that" consistent with the Shenzhen Stock Exchange "SME board listed companies to raise funds management rules", which accurately reflects the shares of the three spent the 2007 annual fund-raising storage and use.
Audited, the three spent shares to raise funds for 2007 is as follows:
(A) raise funds basic situation
By the China Securities Regulatory Commission approved, the three spent shares in May 2005 to be issued to the public yuan ordinary shares (A-shares) 3000 shares, after deducting the cost of issue of the actual amount of fund-raising for 205.6009 million yuan. The fund-raising was on May 24, 2005 and 30 points twice in place.
Spent three shares in 2006 and previously has been used to raise funds 132.7787 million yuan in 2007 to raise funds for the use of 18.56 million yuan, and raising funds for the unused balance of 54.brass ball valve 2622 million yuan.
(B) the management of the fund
To standardize the management of fund-raising and use of protecting the interests of investors, spent three shares formulated the "fund-raising management system" (hereinafter referred to as "management system"). "Management system" has been spent three shares for 2005 Part 1 extraordinary general meeting of shareholders for ratification. According to the new requirements of laws and regulations, "management system" in July 2007 have been revised, and the three spent the year of 2007 shares of a extraordinary general meeting of shareholders for ratification. "Management system" clearly defined fund-raising accounts storage, use, and on change management and supervision.
At present, the fund-raising project by the three spent shares and wholly owned subsidiary of Zhejiang spent three components-controlled Limited (hereinafter referred to three flower-controlled) to implement. "Management system" by the three spent three flower-controlled shares and the strict implementation of fund-raising are stored at the two companies one of the bank accounts. At the same time, raise funds for the effective protection of earmarking, the three spent shares, three flower-controlled, limited liability companies Northeast Securities and Xinchang branch of the Bank of China signed the "special accounts for collection of funds management agreement," and specified the rights and obligations of the parties . As at December 31, 2007, fund-raising storage as follows:
Unit: RMB 10,000 Company Name depositary bank accounts bank account balance of the three categories of storage spend Xinchang branch of the Bank of China stake 870020656728094001 brass ball valve raise funds spent three accounts 2016.75-controlled Bank of China branch 870033261508094001 Xinchang fund accounts 4014.87
Total 6,031.62
Fund-raising account balance of 60.3162 million yuan storage than the aforementioned raise funds unutilized balance