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Capital Verification Report

By Nathan Cunningham,2014-07-04 00:29
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Capital Verification Report

    Capital Verification Report

To [Company name]

    We accepted the appointment to examine the [second] installment of registered capital contribution of [Company name] (“the Company”) as at [date] in respect of its application for incorporation and registration. The responsibilities of all its investor(s) and the Company are to ensure that the capital contributions comply with the legal requirements of the relevant laws, regulations, agreements, contracts and articles of association; to provide true, legitimate and complete information for the verification of capital contributions and to safeguard the Company’s assets. Our responsibility is

    to express an opinion on the [second] installment of capital contribution in accordance with the “Statement of Independent Auditing Practices No.1: Verification of Capital

    Contribution”. In the course of our examination, we performed examination

    procedures as we considered necessary in the circumstances.

According to the agreements, contracts and articles of association, the Company’s

    registered capital to be contributed by [name] (Party A) and [name] (Party B) is [currency] [amount] and shall be fully contributed in [number] installments prior to [date]. The current contribution is for the [second] installment, which shall be contributed before [date]. Based on our examination and as at [date], the Company had received capital contribution of [currency] [amount] contributed by Party A and Party B. The aforesaid actual capital contribution [currency] [amount] is in the form of cash, [currency] [amount] is in the form of tangible assets, and [currency] [amount] is in the form of know-how. The capital contributed in the form of know-how accounts for % of the registered capital.

    [In addition, we also noted that the [first] installment of registered capital contribution of the Company, [currency] [amount], of which [currency] [amount] was contributed by Party A and [currency] [amount] was contributed by Party B, was verified by [name] Certified Public Accountants Co., Ltd. with capital verification report ([number of report]) issued on [date]. As at [date], the Company has received accumulated capital contribution of [currency] [amount] in total.]

    This Capital Verification Report is for the use of the Company to apply for its incorporation and registration and to issue investment certificate(s) to the investor(s). It is not to be deemed as a guarantee or an assurance of the Company’s abilities in maintaining capital, repaying debts or operating as a going concern. XXXX Certified Public Accountants and the Certified Public Accountants who performed this verification shall not be hold liable for any consequences caused by the misuse of this Capital Verification Report.

    Appendix I Summary of the [Second] Installment of Capital Contribution

Appendix II Summary of Accumulated Capital Contribution

    Appendix III Notes to Capital Verification Report

    XXXX Certified Public Accountants Certified Public Accountant

     Certified Public Accountant

Shanghai, the People’s Republic of China [date]

    Notes to Capital Verification Report

1.Information on approval and establishment of the Company

    The Company was jointly established by Party A and Party B under approval by [competent authority] evidenced by approval document [year] No. [number]. Its certificate of approval was issued by [name of issuing entity] on [date] and numbered [number]. The Company obtained the business license on [date] which is issued by [Administration of Industry and Commerce]. The registration number is [number].

2. Registered capital and its terms of contribution

    In accordance with the approved agreements, contracts and articles of association, the Company’s registered capital is [currency] [amount]. The registered capital shall be

    fully contributed by the investors in [number] installments before [date]. The current capital contribution is for the [second] installment. Party A shall contribute [currency] [amount], which accounts for % of the registered capital, [currency] [amount] of the contribution is contributed in the form of cash, [currency] [amount] is contributed in the form of tangible assets and [currency] [amount] is contributed in the form of know-how; Party B shall contribute [currency] [amount], which accounts for % of the registered capital, [currency] [amount] of the contribution is contributed in the form of cash, [currency] [amount] is contributed in the from of tangible assets.

3. Results of verification

    As at [date], the Company had received the [second] installment of capital contribution of [currency] [amount].

    i) Party A contributed [currency] [amount] in the [second] installment, of which [currency] [amount] was remitted to the Company’s [currency] capital bank account (a/c No.) on [date]; know-how valued at [amount] was contributed on [date], the value of which, as determined by all investors, is [amount];

    Appraisal of the know-how contributed by Party A has been performed by [Name of asset appraisal firm] with an asset appraisal report issued thereon. Party A has signed a technology transfer contract with the Company in connection with the aforesaid know-how and the property transfer procedures have been completed.

    ii) Party B contributed [currency] [amount] in the [second] installment, of which [currency] [amount] was remitted to the Company’s [currency] capital bank account

    (a/c No.) on [date]; tangible assets (name, quantity etc.] were contributed on [date], the value of which is determined at [amount]. The determined value has been confirmed by Administration of Quality Inspection and Quarantine of [province] with Property Value Confirmation [number of certificate] issued.

    (The currency referred to above is the currency in which registered capital is expressed. If currency in which capital is actually contributed differs from that in which registered capital is expressed, the following items should be disclosed: name of original currency and amount in that original currency; exchange rate(s) adopted; equivalent amount in the currency in which registered capital is expressed) (If amount actually contributed by the investor(s) exceeds its (their) capital subscription for the current installment, the treatment of the excess should be disclosed.)

4. Other matters

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