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26 National Grid Gas plc Annual Report and Accounts 2010/11
Independent Auditors’ report to the Members of
National Grid Gas plc
We have audited the consolidated and Company financial
statements (the ‘‘financial statements’’) of National Grid Gas plc
for the year ended 31 March 2011 which comprise the
consolidated income statement, the consolidated statement of
comprehensive income, the consolidated and Company
balance sheets, the consolidated statement of changes in
equity, the consolidated cash flow statement, the accounting
policies and Company accounting policies, the adoption of new
accounting standards, the notes to the consolidated financial
statements and the notes to the Company financial statements.
The financial reporting framework that has been applied in the
preparation of the financial statements is applicable law and
International Financial Reporting Standards (IFRS) as adopted
by the European Union. The financial reporting framework that
has been applied in the preparation of the parent Company
financial statements is applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted
Accounting Practice).
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’
Responsibilities set out on page 25, the Directors are
responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view. Our
responsibility is to audit the financial statements in accordance
with applicable law and International Standards on Auditing (UK
and Ireland). Those standards require us to comply with the
Auditing Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and
only for the Company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no
other purpose. We do not, in giving these opinions, 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.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting
policies are appropriate to the Group’s and Company’s
circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant
accounting estimates made by the Directors; and the overall
presentation of the financial statements. In addition, we read all
the financial and non-financial information in the annual report
to identify material inconsistencies with the audited financial
statements. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications
for our report.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the
state of the group’s and of the Company’s affairs as at 31
March 2011 and of the group’s profit and cash flows for
the year then ended;
the consolidated financial statements have been properly
prepared in accordance with IFRS as adopted by the
European Union;
the Company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice (UK GAAP); and
the financial statements have been prepared in
accordance with the requirements of the Companies Act
2006.
Opinion on other matters prescribed by the Companies Act
2006
In our opinion the information given in the Directors’ Report for
the financial year for which the financial statements are
prepared is consistent with the financial statements.
Matters of which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006, we are required to report to
you if, in our opinion:
adequate accounting records have not been kept by the
parent Company, or returns adequate for our audit have
not been received from branches not visited by us; or
the Company financial statements are not in agreement
with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by
law are not made; or
we have not received all the information and explanations
we require for our audit.
Phil Harrold (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Birmingham
20 July 2011