We have audited the accompanying financial statements of Republic Polytechnic (the "Polytechnic") as set out on this report for the year ended 31 March 2004. These financial statements are the responsibility of the Polytechnic 's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion,

(a) the financial statements are properly drawn up in accordance with the provisions of the Republic Polytechnic Act (the "Act") and Singapore Financial Reporting Standards and so as to give a true and fair view of the state of affairs of the Polytechnic as at 31 March 2004 and the results, changes in accumulated surplus and cash flows of the Polytechnic for the financial year ended on that date; and

(b) the accounting and other records have been properly kept in accordance with the provisions of the Act.

During the course of our audit, nothing came to our notice that caused us to believe that during the year:

(i) the receipt, expenditure and investments of monies; and

(ii) the acquisition and disposal of assets by the Polytechnic;

have not been carried out in accordance with the provisions of the Republic Polytechnic Act (Chapter 207); nor that

(iii) the donations and other receipts of the school were not used for approved projects and the purposes intended.

ERNST & YOUNG
Certified Public Accountants

Singapore
15 June 2004