3960 NEW ZEALAND GAZETTE No. 163

PRICEWATERHOUSECOOPERS

PricewaterhouseCoopers
113-119 The Terrace
PO Box 243
Wellington
New Zealand
Telephone +64 (04) 462 7000
Facsimile +64 (04) 462 7001

Auditors’ Report

To the Readers of the financial statements of Transpower New Zealand Limited’s Lines Business

We have audited the accompanying regulatory financial statements of the Transpower New Zealand Limited’s Lines Business. The regulatory financial statements provide information about the past financial performance of the Transpower New Zealand Limited’s Lines Business. This information is stated in accordance with the accounting policies set out in the Statement of Accounting Policies.

Directors’ responsibilities

The Electricity (Information Disclosure) Regulations 1999 require the Directors to prepare regulatory financial statements which give a true and fair view of the financial position of the Transpower New Zealand Limited’s Lines Business as at 30 June 2001, and results of operations and cash flows for the year then ended.

Auditors’ responsibilities

It is the responsibility of the Audit Office to express an independent opinion on the regulatory financial statements presented by the Directors and report that opinion to you. The Controller and Auditor-General has appointed Tim J Fairhall of PricewaterhouseCoopers to carry out the audit.

Basis of opinion

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

• the significant estimates and judgements made by the Directors in the preparation of the regulatory financial statements; and
• whether the accounting policies are appropriate to the Transpower New Zealand Limited’s Lines Business 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 regulatory 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 regulatory financial statements.

Our firm carried out other assignments for the Transpower New Zealand Group in the areas of taxation compliance and other assurance services. Other than these assignments and in our capacity as auditor acting on behalf of the Controller and Auditor-General, we have no relationship with or interests in Transpower New Zealand Limited or the Group.

Unqualified opinion

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

In our opinion:

• proper accounting records have been maintained for the Transpower New Zealand Limited’s Lines Business as far as appears from our examination of those records; and
• the regulatory financial statements referred to above:
  • comply with generally accepted accounting practice; and
  • give a true and fair view of the financial position of the Transpower New Zealand Limited’s Lines Business as at 30 June 2001 and the results of its operations and cash flows for the year then ended; and
  • comply with the Electricity (Information Disclosure) Regulations 1999.

Our audit was completed on 20 November 2001 and our opinion is expressed as at that date.

![Signature]

Tim J Fairhall
On behalf of the Controller and Auditor General
Wellington, New Zealand

PricewaterhouseCoopers