Independent Auditors’ ReportTo the members of NORTHERN VENTURE TRUST PLCWe have audited the <strong>financial</strong> <strong>statements</strong> on pages22 to 33. We have also audited the information inthe directors’ remuneration <strong>report</strong> that is describedas having been audited.This <strong>report</strong> is made solely to the company'smembers, as a body, in accordance with Section 235of the Companies Act 1985. Our audit work hasbeen undertaken so that we might state to thecompany's members those matters we are requiredto state to them in an auditor’s <strong>report</strong> <strong>and</strong> for noother purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility toanyone other than the company <strong>and</strong> the company’smembers as a body, for our audit work, for this<strong>report</strong>, or for the opinions we have formed.Respective responsibilities of directors <strong>and</strong> auditorsThe directors are responsible for preparing the<strong>Annual</strong> Report <strong>and</strong> the directors’ remuneration<strong>report</strong>. As described on page 21, this includesresponsibility for preparing the <strong>financial</strong> <strong>statements</strong>in accordance with applicable United Kingdom law<strong>and</strong> accounting st<strong>and</strong>ards. Our responsibilities, asindependent auditors, are established in the UnitedKingdom by statute, the Auditing Practices Board,the Listing Rules of the Financial Services Authority,<strong>and</strong> by our profession’s ethical guidance.We <strong>report</strong> to you our opinion as to whether the<strong>financial</strong> <strong>statements</strong> give a true <strong>and</strong> fair view <strong>and</strong>whether the <strong>financial</strong> <strong>statements</strong> <strong>and</strong> the part of thedirectors’ remuneration <strong>report</strong> to be audited havebeen properly prepared in accordance with theCompanies Act 1985. We also <strong>report</strong> to you if, inour opinion, the directors’ <strong>report</strong> is not consistentwith the <strong>financial</strong> <strong>statements</strong>, if the company hasnot kept proper accounting records, if we have notreceived all the information <strong>and</strong> explanations werequire for our audit, or if information specified bylaw regarding directors’ remuneration <strong>and</strong>transactions with the company is not disclosed.We review whether the statement on page 21 reflectsthe company’s compliance with the seven provisionsof the Combined Code specified for our review bythe Listing Rules, <strong>and</strong> we <strong>report</strong> if it does not. Weare not required to consider whether the board's<strong>statements</strong> on internal control cover all risks <strong>and</strong>controls, or form an opinion on the effectiveness ofthe company’s corporate governance procedures orits risk <strong>and</strong> control procedures.We read the other information contained in the<strong>Annual</strong> Report, including the corporate governancestatement <strong>and</strong> the unaudited part of the directors'remuneration <strong>report</strong>, <strong>and</strong> consider whether it isconsistent with the audited <strong>financial</strong> <strong>statements</strong>. Weconsider the implications for our <strong>report</strong> if webecome aware of any apparent mis<strong>statements</strong> ormaterial inconsistencies with the <strong>financial</strong><strong>statements</strong>.Basis of audit opinionWe conducted our audit in accordance with AuditingSt<strong>and</strong>ards issued by the Auditing Practices Board. Anaudit includes examination, on a test basis, ofevidence relevant to the amounts <strong>and</strong> disclosures inthe <strong>financial</strong> <strong>statements</strong> <strong>and</strong> the part of the directors’remuneration <strong>report</strong> to be audited. It also includesan assessment of the significant estimates <strong>and</strong>judgements made by the directors in the preparationof the <strong>financial</strong> <strong>statements</strong>, <strong>and</strong> of whether theaccounting policies are appropriate to the company’scircumstances, consistently applied <strong>and</strong> adequatelydisclosed.We planned <strong>and</strong> performed our audit so as to obtainall the information <strong>and</strong> explanations which weconsidered necessary in order to provide us withsufficient evidence to give reasonable assurance thatthe <strong>financial</strong> <strong>statements</strong> <strong>and</strong> the part of the directors’remuneration <strong>report</strong> to be audited are free frommaterial misstatement, whether caused by fraud orother irregularity or error. In forming our opinionwe also evaluated the overall adequacy of thepresentation of information in the <strong>financial</strong><strong>statements</strong> <strong>and</strong> the part of the directors’remuneration <strong>report</strong> to be auditedOpinionIn our opinion:the <strong>financial</strong> <strong>statements</strong> give a true <strong>and</strong> fair viewof the state of affairs of the company as at30 September 2003 <strong>and</strong> of its profit for the yearthen ended; <strong>and</strong>the <strong>financial</strong> <strong>statements</strong> <strong>and</strong> the part of thedirectors’ remuneration <strong>report</strong> to be audited havebeen properly prepared in accordance with theCompanies Act 1985.KPMG AUDIT PlcChartered AccountantsRegistered AuditorsEdinburgh 12 November 2003PAGE 34 Northern Venture Trust PLC <strong>Annual</strong> Report <strong>and</strong> Accounts 2003
Unaudited Statement of Total Returnfor the year ended 30 September 2003A pro forma Statement of Total Return in the form set out in the Statement of Recommended Practice “Financial <strong>statements</strong> ofinvestment trust companies” is shown below for the information of shareholders.Year ended 30 September 2003 Year ended 30 September 2002Revenue Capital Total Revenue Capital Total£000 £000 £000 £000 £000 £000Gains/(losses) on investments — 3,669 3,669 — (3,879) (3,879)Income 1,269 — 1,269 1,299 — 1,299Investment management fee (185) (556) (741) (223) (670) (893)Other expenses (214) — (214) (207) — (207)Return on ordinary activities before interest <strong>and</strong> tax 870 3,113 3,983 869 (4,549) (3,680)Interest payable (47) — (47) (23) — (23)Return on ordinary activities before tax 823 3,113 3,936 846 (4,549) (3,703)Tax on ordinary activities (118) 118 — (126) 126 —Return on ordinary activities after tax 705 3,231 3,936 720 (4,423) (3,703)Dividends (678) (1,309) (1,987) (817) — (817)Transfer to/(from) reserves 27 1,922 1,949 (97) (4,423) (4,520)Return per share 1.8p 8.0p 9.8p 1.8p (10.8)p (9.0)pDividend per share 1.7p 3.3p 5.0p 2.0p — 2.0pPAGE 35 Northern Venture Trust PLC <strong>Annual</strong> Report <strong>and</strong> Accounts 2003
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