Statement of Directors' Responsibilities
for Financial Statements
The following statement, which should be read in
conjunction with the Report of the Auditors below, enables shareholders to
distinguish the respective responsibilities of the Directors and the Auditors
in relation to the financial statements.
The Directors are required by the Companies Act 1985
to prepare financial statements for each financial year which give a true
and fair view of the state of affairs of the Company and the Group as at
the end of the financial year and of the profit or loss for the financial
year.
The Directors consider that in preparing the financial
statements on pages 49 to 78 suitable accounting policies, consistently applied
and supported by reasonable and prudent judgements and estimates, have been
used and that all accounting standards which they consider applicable have
been followed.
The Directors have responsibility for ensuring that the
Company keeps accounting records which disclose with reasonable accuracy
the financial position of the Company and which enable them to ensure that
the financial statements comply with the Companies Act 1985.
The Directors have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets of the
Group and to prevent and detect fraud and other irregularities.
Jon Foulds
Chairman
17 February 1999
Report of the Auditors to the
Members of Halifax plc
We have audited the financial statements on
pages 49 to 78.
Respective responsibilities
of Directors and Auditors
The Directors are responsible for preparing the Annual Report including,
as described above, the financial statements. Our responsibilities, as
independent auditors, are established by statute, the Auditing Practices
Board, the Listing Rules of the London Stock Exchange, and by our profession's
ethical guidance.
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly prepared in accordance
with the Companies Act. We also report to you if, in our opinion, the Directors'
Report is not consistent with the financial statements, if 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 or the Listing Rules regarding directors' remuneration and transactions
with the Company is not disclosed.
We review whether the statement on page 47 reflects the
Company's compliance with those provisions of the Combined Code specified
for our review by the Stock Exchange, and we report if it does not. We are
not required to form an opinion on the effectiveness of the Company's corporate
governance procedures or its internal controls.
We read the other information contained in the Annual
Report, including the corporate governance statement, and consider whether
it is consistent with the audited financial statements. We consider the
implications for our report if we become aware of any apparent misstatements
or material inconsistencies with the financial statements.
Basis of audit
opinion
We conducted our audit in accordance with Auditing Standards 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 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 presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the
state of affairs of the Company and the Group as at 31 December 1998 and
of the profit of the Group for the year then ended and have been properly
prepared in accordance with the Companies Act 1985.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
Leeds
17 February 1999