National Grid 2007 Annual Report Download - page 37

National Grid Electricity Transmission Annual Report and Accounts 2006/07 35
Independent Auditors’ Report to the Members
of National Grid Electricity Transmission plc
We have audited the consolidated and parent company
financial statements (the ‘Financial Statements’) of National
Grid Electricity Transmission plc for the year ended 31 March
2007 which comprise of the Consolidated Income Statement,
the Consolidated and Company Balance Sheets, the
Consolidated Cash Flow Statement, the Consolidated
Statement of Recognised Income and Expense, the Accounting
Policies and Company Accounting Policies, the Notes to the
Accounts and the Notes to the Company Accounts. These
financial statements have been prepared under the accounting
policies set out therein.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report
and the consolidated financial statements in accordance with
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union and the parent
company financial statements in accordance with applicable law
and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice) are set out in the
Statement of Directors’ Responsibilities.
Our responsibility is to audit the Financial Statements in
accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland). This
report, including the opinion, has been prepared for and only for
the Company’s members as a body in accordance with Section
235 of the Companies Act 1985 and for no other purpose. We
do not, in giving this opinion, accept or assume responsibility for
any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
We report to you our opinion as to whether the Financial
Statements give a true and fair view, whether the Financial
Statements have been properly prepared in accordance with
the Companies Act 1985 and whether, in addition, the
consolidated financial statements have been properly prepared
in accordance with Article 4 of the IAS Regulation. We report to
you whether, in our opinion, the information in the Directors’
Report is consistent with the Financial Statements. The
information in the Directors’ Report includes that specific
information presented in the Operating and Financial Review
that is cross-referred from the Business Review section of the
Directors’ Report.
In addition, we report to you if, in our opinion, the Company has
not kept proper accounting records, if we have not received all
the information and explanations we require for our audit, or if
information specified by law regarding Directors’ remuneration
and other transactions is not disclosed.
We read other information contained in the Annual Report and
consider whether it is consistent with the audited Financial
Statements. The other information comprises only the Directors’
Report and the Operating and Financial Review. We consider
the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the
Financial Statements. Our responsibilities do not extend to any
other information.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the
Financial Statements. It also includes an assessment of the
significant estimates and judgements made by the Directors in
the preparation of the Financial Statements, and of whether the
accounting policies are appropriate to the Group’s and
Company’s circumstances, consistently applied and adequately
disclosed.
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 give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the Financial
Statements.
Opinion
In our opinion:
1 the consolidated financial statements give a true and fair
view, in accordance with IFRSs as adopted by the
European Union, of the state of the Group’s affairs as at 31
March 2007 and of its profit and cash flows for the year then
ended;
1 the consolidated financial statements have been properly
prepared in accordance with the Companies Act 1985 and
Article 4 of the IAS Regulation;
1 the parent company financial statements give a true and fair
view, in accordance with United Kingdom Generally
Accepted Accounting Practice, of the state of the
Company’s affairs as at 31 March 2007;
1 the parent company financial statements have been
properly prepared in accordance with the Companies Act
1985; and
1 the information in the Directors’ Report is consistent with the
financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Birmingham
18 June 2007