Tanfield Group PLC
Page 18



INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TANFIELD GROUP
PLC
We have audited the group and parent company financial statements which comprise the Consolidated Income
Statement, the Consolidated and Company Balance Sheets, the Consolidated and Company Cash Flow Statements,
the Consolidated and Company Statements of Changes in Shareholders' Equity and the related notes.
This report is made solely to the company's members, as a body, in accordance with section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the company's members those matters we
are required to state to them in an auditor's 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 Annual Report and the financial statements in accordance with
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union ("EU") 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).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial
statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether
in our opinion the information given in the Directors' Report is consistent with the financial statements.
In addition we report to you 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 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 Financial and Business Review, the Directors' Report, Corporate
Governance Report and Directors' Remuneration Report. 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.

AnnualReport2008 Page 21
Tanfield Group PLC
Page 19
Opinion
In our opinion:
·
the group 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 December 2008 and of its loss for the year then
ended;
·
the parent company financial statements give a true and fair view, in accordance with IFRSs as adopted by
the European Union as applied in accordance with the provisions of the Companies Act 1985, of the state of
the parent company's affairs as at 31 December 2008;
·
the financial statements have been properly prepared in accordance with the Companies Act 1985; and
·
the information given in the Directors' Report is consistent with the financial statements.


BAKER TILLY UK AUDIT LLP
Registered Auditor
Chartered Accountants
1 St James' Gate
Newcastle upon Tyne
NE1 4AD

16 April 2009