no.21of2011auditfindingsonthefinancialrevenuesand.docVIP

No. 21 of 2011: Audit Findings on the Financial Revenues and Expenditures of China Shipbuilding Industry Corporation for the Year 2009 Audit Findings on Financial Revenues and Expenditures of China Shipbuilding Industry Corporation for the Year 2009 (Announced on May 20, 2011) In accordance with the provisions of the Audit Law of the People’s Republic of China, in 2010, the National Audit Office (CNAO) conducted an audit of the financial revenues and expenditures of China Shipbuilding Industry Corporation (hereinafter referred to as “CSIC”) for the year 2009 and traced back to relevant years regarding major issues involved in the audit. I.?Background CSIC was set up in July 1999, with a registered capital of 12.13 billion yuan. It has 79 affiliated entities directly under it, covering shipbuilding, equipment manufacturing and scientific research, which are engaged in the design, production and repair of ships and supporting equipments. The consolidated financial statements of CSIC show that by the end of 2009, the total assets of CSIC stood at 264.612 billion yuan, whereas its liabilities and owner’s equity amounted to 198.53 billion yuan and 66.082 billion yuan respectively. Its business revenue in 2009 totaled 121.094 billion yuan, while its profits that year reached 7.478 billion yuan. II.?Audit Evaluation and Audit Opinion The audit focused on the CSIC head office and eleven of its affiliated entities, involving assets worth of 178.688 billion yuan, accounting for 67.53% of the total assets. The audit findings indicate that the major economic indicators of CSIC grew continuously and steadily. CSIC has carried out the state macro-economic policies quite well, with its core businesses growing fairly rapidly, its shipbuilding capacity notably increased, its level of equipments manufacturing constantly improved, and its growth momentum and resistance against risks increased continually. However, problems occurred in accounting, construction project management and