5358 NEW ZEALAND GAZETTE, No. 184 28 NOVEMBER 2011


Independent Auditor’s Report

To the readers of the financial statements of Transpower New Zealand Limited Lines Business ("the Business") for the year ended 30 June 2011.

We have audited the accompanying financial statements of the Business, which comprise the statement of financial position of the Business as at 30 June 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows of the Business for the year then ended, and a summary of significant accounting policies and other explanatory information.

Directors’ Responsibilities for the Financial Statements

The Commerce Commission’s Electricity Information Disclosure Requirements 2004 made under section 54W of the Commerce Act 1986 require the Directors to prepare financial statements which give a true and fair view of the Business as at 30 June 2011, and results of its operations and cash flows for the year then ended, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

We conducted our audit in accordance with International Standards on Auditing (New Zealand). These auditing standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we have considered the internal control relevant to the Business’ preparation of the financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Business’ internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements.

We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

In addition to the review, we act as auditor on behalf of the Auditor-General and have carried out other assurance assignments, which are compatible with the independence requirements of the Auditor-General. Other than these assignments we have no relationship with, or interest in Transpower New Zealand Limited or its subsidiaries.

Opinion

In our opinion, the financial statements referred to above:

• comply with generally accepted accounting practice;
• give a true and fair view of the financial position of the Business as at 30 June 2011 and the results of its operations and cash flows for the year then ended; and
• comply with the Electricity Information Disclosure Requirements 2004.

Report on Other Legal and Regulatory Requirements

In our opinion proper accounting records have been kept by Transpower New Zealand Limited as far as appears from our examination of those records.

Our audit was completed on 17 November 2011 and our opinion is expressed as at that date.

Ernst & Young

Wellington