Directors Report 1

Directors' report

The directors present their report and audited financial statements of the company for the year ended 31
The directors' report has been prepared in accordance with the provisions applicable to companies entitled

Results and dividends The company recorded a loss for the year of ?2,463 (fourteen month period ended 31 March 2009 loss of ?2,868) The directors cannot recommend the payment of an ordinary dividend (fourteen month period ended 31

Principal activity and review of the business The planned principal activity of the company is the provision of services to water and wastewater business customers It is anticipated that the company will commence trading in the foreseeable future
The company did not trade during the current year or prior period
Going concern The directors' considerations in preparing these financial statements on a going concern basis are set out in note 1
Directors The directors who held office during the year and to date are given below M Carmedy (appointed 15 May 2009) JM Perrie (resigned 15 May 2009)
During the year directors' and officers' liability insurance was in force
Disclosure of information to the auditors Each of the persons who is a director at the date of approval of this report confirms that ?so far as the director is aware, there is no relevant audit information of which the company's
?the director has taken all the steps that he ought to have taken as a director to make himself aware
information This confirmation is given and should be interpreted in accordance with the provisions of section 418 of

Auditors Deloitte LLP have indicated their willingness to be reappointed for another term and appropriate
Annual General Meeting
By order of the board
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M Carme
2010-09-16 00:00:00

United Utilities Water Leasing Limited

Statement of directors' responsibilites in respect of the financial statements
The directors are responsible for preparing their report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently,
?make judgments and accounting estimates that are reasonable and prudent, and
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
Independent auditors' report to the members of United Utilities Water Leasing Limited
We have audited the financial statements of United Utilities Water Leasing Limited for the year ended
losses, the balance sheet, and the related notes 1 to 8 The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16
members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed Respective responsibilities of directors and auditors As explained more fully in the statement of directors' responsibilities, the directors are responsible for the
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 (APB's) Ethical Standards for Auditors Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements
whether caused by fraud or error This includes an assessment of whether the accounting policies are appropriate to the 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 Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 March 2010 and of its loss
?have been properly prepared in accordance with United Kingdom Generally Accepted
?have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter 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 on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been
?the 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
iiZattstkfrt-ix._ Jane Boardman (Senior Statutory Auditor)
Chartered Accountants and Statutory Auditors
17 Setitleo 10
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United Utilities Water Leasing Limited

Directors Report 2

Directors' report

The directors present their report and audited financial statements of the company for the fourteen month
The directors' report has been prepared in accordance with the special provisions relating to small

Results and dividends The company recorded a loss for the period of 0,868. The directors cannot recommend the payment of an ordinary dividend.
Principal activity and review of the business The company was incorporated in Great Britain and registered in England and Wales on 5 February 2008
6493296. The principal activity of the company is the provision of services to water and wastewater business
The company did not trade during the period.
Going concern The directors' considerations in preparing these financial statements on a going concern basis are set out in note I.
Directors The directors who held office during the period and to date are given below: M Cartnedy JM Perrie GL Sims UU Directorate Limited UU Secretariat Limited (appointed 15 May 2009) (appointed 1 September 2008; resigned 15 May 2009) (appointed 1 September 2008) (appointed 5 February 2008; resigned 1 September 2008) (appointed 5 February 2008; resigned 1 September 2008) During the period directors' and officers' liability insurance was in force.
Disclosure of information to the auditors Each of the persons who is a director at the date of approval of this report confirms that: I. so far as he or she is aware, there is no relevant audit information of which the company's
2. he or she has taken all the steps that he/she ought to have taken as a director in order to make
auditors are aware of that information.
This confirmation is given, and should be interpreted, in accordance with the provisions of s234ZA of the

Auditors A resolution to appoint Deloitte LLP as auditors will be proposed at the forthcoming Annual General Meeting.
By order of the board

AJ Tayl For and on behalf of UU Secretariat Limited Company Secretary 2009-10-19 00:00:00
3.0 United Utilities Water Leasing Limited

Statement of directors' responsibilites in respect of the

The directors are responsible for preparing the Annual Report and the financial statements in accordance
Company law requires the directors to prepare financial statements for each financial year. Under that law
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?make judgments and estimates that are reasonable and prudent;
?state whether applicable UK Accounting Standards have been followed, subject to any material

?prepare the financial statements on the going concern basis unless it is inappropriate to presume that

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy
statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

4.0 United Utilities Water Leasing Limited

Independent auditors' report to the members of United Utilities Water Leasing Limited
We have audited the financial statements of United Utilities Water Leasing Limited for the fourteen
recognised gains and losses, the balance sheet and the related notes 1 to 8. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the company's members, as a body, in accordance with section 235 of the
members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors The directors' responsibilities for preparing the financial statements in accordance with applicable law and
set out in the statement of directors' responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory
We report to you our opinion as to whether the financial statements give a true and fair view and are
opinion the information given in the directors' report is consistent with the financial statements. In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we
by law regarding directors' remuneration and other transactions is not disclosed. We read the directors' report and consider the implications for our report if we become aware of any
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued
the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the director in the preparation of the financial statements, and of whether the accounting policies are appropriate to the 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
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: ?the financial statements give a true and fair view, in accordance with United Kingdom Generally
its loss for the fourteen month period then ended; ?the financial statements have been properly prepared in accordance with the Companies Act
?the information given in the directors' report is consistent with the financial statements.
cleksji.
Deloitte LLP Chartered Accountants and Registered Auditors Manchester, United Kingdom 2_0 October 2009
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United Utilities Water Leasing Limited