عربي

Annual Report 2010

Independent Auditors’ Report

The Shareholder
Mubadala Development Company PJSC
Abu Dhabi
United Arab Emirates

Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Mubadala Development Company PJSC (“Mubadala” or “the Company”), its subsidiaries and its jointly controlled assets (collectively referred to as “the Group”). These consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2010, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, the Articles of Association of the Company and the UAE Federal Law No. (8) of 1984 (as amended), and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2010, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards and comply, where appropriate, with the Articles of Association of the Company and the UAE Federal Law No. 8 of 1984 (as amended).

Emphasis of matter – significant uncertainties
Without qualifying our opinion, we draw attention to notes 3 (g)(i) and 36 (a)(i) to the consolidated financial statements, which states the existence of significant uncertainties with respect to the recognition and valuation of land received as government grants, the resolution of which is dependent upon future events.

Other matters
As required by UAE Federal Law No. 8 of 1984 (as amended), we further confirm that we have obtained all the information and explanations necessary for our audit, that proper financial records have been kept by the Group, that physical counts of inventories were carried out by management in accordance with established principles, and that the contents of the Directors’ report which relate to these consolidated financial statements are in agreement with the Group’s financial records. We are not aware of any violation of the above mentioned Law or the Company’s Articles of Association having occurred during the year ended 31 December 2010, which may have had a material adverse effect on the business of the Group or on its financial position.

21 March 2011           KPMG