2346 NEW ZEALAND GAZETTE No. 94

Deloitte Touche Tohmatsu

AUDITOR'S REPORT

TO THE READERS OF THE FINANCIAL STATEMENTS OF POWERCO LIMITED

FOR THE YEAR ENDED 31 MARCH 2000

We have audited the financial statements of Powerco Limited on pages 1 to 15. The financial statements provide information about the past financial performance of Powerco 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 to 7.

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

Auditor's Responsibilities

It is our responsibility to express an independent opinion on the financial statements presented by the Directors and report 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 judgements made by the Directors in the preparation of the financial statements; and

• whether the accounting policies are appropriate to Powerco 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 except that our work has been limited as explained below. 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 we have no relationship with or interest in Powerco Limited or its subsidiaries.

Qualified Opinion

The Electricity (Information Disclosure) Regulations 1999 established the mandatory application of an Avoided Cost Allocation Methodology for the current financial disclosures and in doing so does not require the comparative information to be restated for any changes in allocation basis applied in the current financial year. FRS 2 Presentation of Financial Reports issued by the Institute of Chartered Accountants of New Zealand requires that comparative figures be restated to correspond with the classification presented in the current period. In this respect alone we have not obtained all the information and explanations we have required.

In our opinion except for adjustments that might have been found necessary had the comparative figures been restated:

• proper accounting records have been maintained by Powerco Limited as far as appears from our examination of those records, and

• the financial statements on pages 1 to 15:
  (a) comply with generally accepted accounting practice; and
  (b) give a true and fair view of the financial position of Powerco 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 2 August 2000 and our qualified opinion is expressed as at that date.

Graham Naylor
Deloitte Touche Tohmatsu
Hamilton