NEW ZEALAND GAZETTE

No. 69

PricewaterhouseCoopers
Civic Centre, The Square
P.O. Box 648
Palmerston North, New Zealand
Telephone +64 6 358 4933
Facsimile +64 6 358 6162

REPORT OF THE AUDIT OFFICE

TO THE READERS OF THE FINANCIAL STATEMENTS OF HOROWHENUA ENERGY LIMITED

FOR THE YEAR ENDED 31 MARCH 2000

We have audited the financial statements of Horowhenua Energy Limited on pages 2 to 16. The financial statements provide information about the past financial performance of Horowhenua Energy Limited and its financial position as at 31 March 2000. This information is stated in accordance with the accounting policies set out on pages 5 and 6.

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 Horowhenua Energy Limited as at 31 March 2000, and results of operations and cash flows for the year then ended.

Auditor's Responsibilities

It is the responsibility of the Audit Office to express an independent opinion on the financial statements presented by the Directors and report its opinion to you.

The Controller and Auditor-General has appointed Ivan Booth of PricewaterhouseCoopers to undertake the audit.

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 judgements made by the Directors in the preparation of the financial statements; and

• whether the accounting policies are appropriate to Horowhenua Energy Limited's circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards, including the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain 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.

We carry out other assignments on behalf of the company in the areas of taxation and consulting advice. Other than in these capacities and in our capacity as auditor acting on behalf of the Controller and Auditor-General, we have no relationship with or interests in Horowhenua Energy Limited.

Unqualified Opinion

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

In our opinion -

• proper accounting records have been maintained by Horowhenua Energy Limited as far as appears from our examination of those records; and

• the financial statements on pages 2 to 16 -

  (a) comply with generally accepted accounting practice; and

  (b) give a true and fair view of the financial position of Horowhenua Energy Limited as at 31 March 2000 and the results of its operations and cash flows for the year then ended; and

  (c) comply with the Electricity (Information Disclosure) Regulations 1999.

Our audit was completed on 26 May 2000 and our unqualified opinion is expressed as at that date.

I R Booth
PricewaterhouseCoopers
On behalf of the Controller and Auditor-General
Palmerston North, New Zealand