BWP GROUP — Audit Report / Information 2003

Sep 4, 2003

EII ERNST & YOUNG

Central Park 152 St Georges Terrace Perth WA 6000 Australia

GPO Box M939 Perth WA 6843

INDEPENDENT AUDIT REPORT

To the Directors of Bunnings Property Management

Scope

We have audited the compliance plan of the Bunnings Warehouse Property Trust ("BWPT"), which was established by Bunnings Property Management Limited ("BPML") as the responsible entity for BWPT for the financial year ended 30 June 2003. As directors of BPML you are responsible for the design, documentation, operation and monitoring of the compliance plan and the adequacy of compliance measures contained in the plan, including the relevant internal control systems, policies and procedures, and compliance therewith. These responsibilities are set out in Part SC.2 of the Corporations Act 2001 applicable in Australia. We have conducted an independent audit of the compliance plan in order to express an opinion on it to BPML.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance regarding the compliance plan. Accordingly, we have performed such tests and procedures as we considered necessary in the circumstances. Our procedures included obtaining an understanding of the compliance plan and the compliance measures which it contains and examining, on a test basis, evidence supporting the operation of these compliance measures. These procedures have been undertaken to form an opinion whether, in all material respects, BPML has complied with the compliance plan during the financial year ended 30 June 2003 and the compliance plan continue to meet the requirements of Part 5C.4 of the Corporations Act 2001 as at that date.

This audit report has been prepared for BPML as the responsible entity of the BPWT in accordance with section 601HG of the Corporations Act 2001. We disclaim any assumption of responsibility for any reliance on this report to any person other than BPML, or for any purpose other than that for which it was prepared.

Inherent Limitations

Because of the inherent limitations of any compliance plan, it is possible that fraud, error or non-compliance with laws and regulations may occur and not be detected. An audit is not designed to detect all weaknesses in a compliance plan and the compliance measures in the plan as an audit is not performed continuously throughout the financial year and the audit procedures performed on the compliance plan and compliance measures are undertaken on a test basis.

Any projection of the evaluation of the compliance plan to future periods is subject to the risk that the compliance measures in the plan may become inadequate because of changes in conditions or circumstances, or that the degree of compliance with them may deteriorate.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, in all material respects:

• BPML has complied with the compliance plan of BWPT for the financial year ended 30 June 2003; and $(a)$
• $(b)$ the plan continues to meet the requirements of Part 5C.4 of the Corporations Act 2001 as at that date.

$\mathcal{E}_{\text{max}}$ Ernst & Young

$J \not\text{N}$ Copp Partner Perth

Date: 19 August 2003

COPI:KA:BUNNINGS:033

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW).