REPORT OF THE AUDITORS
KPMG Peat Marwick
TO THE SHAREHOLDERS OF
THE KOWLOON MOTOR BUS COMPANY (1933) LIMITED
(Incorporated in Hong Kong with limited liability)
We have audited the accounts on pages 41 to 58 which have been prepared in accordance with
accounting principles generally accepted in Hong Kong.
Respective Responsibilities of Directors and Auditors
The Companies Ordinance requires the Directors to prepare accounts which give a true and fair view. In
preparing accounts which give a true and fair view, it is fundamental that appropriate accounting policies
are selected and applied consistently, that judgements and estimates are made which are prudent and
reasonable and that the reasons for any significant departure from applicable accounting standards are
stated.
It is our responsibility to form an independent opinion, based on our audit, on those accounts and to
report our opinion to you.
Basis of Opinion
We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong
Society of Accountants. An audit includes examination, on a test basis, of evidence relevant to the
amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and
judgements made by the Directors in the preparation of the accounts, and of whether the accounting policies are appropriate to the Company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the accounts are free from material misstatement. In forming our opinion, we also evaluated the
overall adequacy of the presentation of information in the accounts. We believe that our audit provides a reasonable basis for our opinion.
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