3 AUGUST 2005 NEW ZEALAND GAZETTE, No. 115 2779

Gabites, Sinclair & Partners

Chartered Accountants & Business Advisers

100 Burnett Street,
P O Box 424
ASHBURTON, N.Z.

Phone (03) 308 5099
Fax (03) 308 3955
Email email@gabites.sinclair.co.nz

AUDITORS REPORT

To the readers of the Financial Statements of Electricity Ashburton Limited.

We have audited the accompanying financial statements of Electricity Ashburton Limited on pages two to twelve. The financial statements provide information about the past financial performance of Electricity Ashburton Limited and its financial position as at 31 March 2005. This information is stated in accordance with the accounting policies set out on pages five and six.

Directors’ Responsibilities

The Commerce Commission’s Electricity Information Disclosure Requirements 2004 made under Section 57T of the Commerce Act 1986 require the Directors to prepare financial statements which give a true and fair view of the financial position of Electricity Ashburton Limited as at 31 March 2005, and the results of operations and cash flows for the year ended 31 March 2005.

Auditor’s 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 the Electricity Ashburton Limited’s 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.

Our firm and the partners and employees of our firm, deal with the company on normal terms within the ordinary course of the business of the company. As part of these trading activities our firm and the partners and the employees are obliged to hold shares in the company. Our firm and the partners and employees have no other interests in the company.

Unqualified Opinion

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

In our opinion:

• proper accounting records have been maintained by Electricity Ashburton Limited as far as appears from our examination of those records; and
• the financial statements of Electricity Ashburton Limited on pages two to twelve:
  (a) comply with generally accepted accounting practice; and
  (b) give a true and fair view of the financial position of the Company as at 31 March 2005 and the results of its operations and cash flows for the year then ended; and
  (c) comply with the Electricity Information Disclosure Requirements 2004

Our audit was completed on 27 July 2005 and our opinion is expressed as at that date.

Gabites Sinclair & Partners
GABITES, SINCLAIR & PARTNERS
ASHBURTON

PARTNERS: Alistair J. Rooney C.A.
Philip S. Quaid C.A.

Eric T. Parr B.Com., C.A.
Ross S. Gibson B.Com., C.A.