2990 NEW ZEALAND GAZETTE No. 125

FORM 1 : AUDITORS' REPORT

To the readers of the financial statements of UnitedNetworks.

We have audited the accompanying financial statements of UnitedNetworks. The financial statements provide information about the past financial performance of UnitedNetworks and its financial position as at 31 March 1999. This information is stated in accordance with the accounting policies set out in section 2.5 (1).

Directors' Responsibilities

The Electricity (Information Disclosure) Regulations 1999 require the Directors to prepare financial statements which give a true and fair view of the financial position of UnitedNetworks as at 31 March 1999, and results of operations and cash flows for the year then ended.

Auditors' Responsibilities

It is our responsibility to express an independent opinion on the financial statements presented by the Directors and report our opinion to you.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing -

• the significant estimates and judgments made by the Directors in the preparation of the financial statements; and
• whether the accounting policies are appropriate to UnitedNetworks' circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary. We obtained sufficient evidence to give reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

In addition to our capacity as auditors and taxation advisors, our firm carries out consultancy assignments for UnitedNetworks Limited and principals and employees of our firm deal with UnitedNetworks Limited as domestic power consumers, on normal terms within the ordinary course of trading activities of UnitedNetworks Limited.

Qualified Opinion

Paragraph 2.18 of the Electricity Information Disclosure Handbook, issued by the Ministry of Commerce, permits line companies to exclude comparative figures where disclosures are made for the first time for the current disclosure year. UnitedNetworks Limited has taken advantage of this exemption and has not disclosed comparative figures in these circumstances. To this extent, the financial statements of UnitedNetworks do not comply with Financial Reporting Standard No. 2, Presentation of Financial Reports, or the Electricity (Information Disclosure) Regulations 1999.

We have obtained all the information and explanations we have required.

In our opinion, proper accounting records have been kept by UnitedNetworks Limited as far as appears from our examination of those records.

In our opinion, except for the omission of comparative figures referred to above, the financial statements of UnitedNetworks in Section 2:

• comply with generally accepted accounting practice; and
• give a true and fair view of:
  • the financial position as at 31 March 1999; and
  • the results of its operations and cash flows for the year ended on that date; and
• comply with the Electricity (Information Disclosure) Regulations 1999.

Our audit was completed on 27 August 1999 and our qualified opinion is expressed as at that date.

Deloitte Touche Tohmatsu,
Chartered Accountants, Auckland, New Zealand