The project is based on the twelve items requested for compensation by Chung-Hsin Electric & Machinery Co. with total compensation amount of NT 1,467,555,531.We conducted our audits in accordance with Generally Accepted Auditing Standards No.34, “Agreed-upon procedures engagements” including review, audit, calculate, analyze and attended the meeting of Arbitration Association of the Republic of China. The purpose is to obtain reasonable assurance of the related documents of the requested twelve items by Chung-Hsin Electric & Machinery Co. were true, correct, relevance and reasonable. We will provide the agreed- upon procedures report to the client. We have provided arbitration’s document No 16. about Chung-Hsin electric & machinery request twelve items on May 25, 04. In our opinion, some part of twelve items are rue, correct, relevance and reasonable. We have already provided the reasons for response for the Arbitration Association of the Republic of China and Environment Protection Department. The case was judged by the Arbitration Association of the Republic of China on June 28,04. The Environment Protection Department had to indemnify for NT 486,534,895.

arbitration