REPORT OF THE AUDITOR-GENERAL

TO THE READERS OF THE FINANCIAL STATEMENTS OF THE LINES COMPANY LIMITED

FOR THE YEAR ENDED 31 MARCH 2003

We have audited the financial statements of The Lines Company Limited on pages 1 to 12. The financial statements provide information about the past financial performance of The Lines Company Limited and its financial position as at 31 March 2003. This information is stated in accordance with the accounting policies set out on pages 4 to 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 The Lines Company Limited as at 31 March 2003, and results of operations and cash flows for the year then ended.

Auditor’s Responsibilities

Section 15 of the Public Audit Act 2001 and Regulation 31 of the Electricity (Information Disclosure) Regulations 1999 require the Auditor-General to audit the financial statements. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you.

The Controller and Auditor-General has appointed Bruce Taylor of Deloitte Touche Tohmatsu 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 The Lines Company Limited’s circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with the Auditing Standards published by the Auditor-General, which incorporate 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.

Other than in our capacity acting on behalf of the Auditor-General, we have no relationship with or interest in The Lines Company Limited.

Unqualified Opinion

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

In our opinion:

• proper accounting records have been maintained by The Lines Company Limited as far as appears from our examination of those records, and
• the financial statements on pages 1 to 12:
  (a) comply with generally accepted accounting practice; and
  (b) give a true and fair view of the financial position of The Lines Company Limited as at 31 March 2003 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 12 August 2003 and our unqualified opinion is expressed as at that date.

Bruce Taylor
Deloitte Touche Tohmatsu
On behalf of the Auditor-General
Hamilton, New Zealand