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REPORTS OF THE BOARD OF DIRECTORS
8
REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
Consolidation
The Group’s consolidated financial statements are prepared in
accordance with International Financial Reporting Standards (IFRS),
based on accounting data prepared under the responsibility of the
heads of its operating units.
Points of particular significance for the Group are dealt with centrally.
For example, the Group Finance Department reviews the accounting
processing of disposals and acquisitions and the regular tests carried
out on the value of the Company’s assets.
Accounting
The Group Finance Department coordinates the accounts closure
processes and sends out any necessary memorandums and instructions
to all consolidated entities. In addition, it meets regularly with the
Statutory Auditors in order to present specific and significant transactions
carried out during the year and the accounting options selected.
Financing and cash management
The Group has put in place a centralised management system for cash
and investments,
via
a cash pool set up for entities in Eurozone countries
and has implemented other cash centralisation procedures for the other
entities. The Board of Directors defines the cash management policy on
a yearly basis with the overall aim of guaranteeing the liquidity and
security of investments.
Currency and interest rate hedges as well as the counterparties for
these hedges are centralised at the level of Assystem SA. The number
of banks used for these instruments is limited.
The Group has chosen Swift Net to ensure that its financial messaging
is secure. Combined with its cash management software in Saas mode,
this solution provides an optimised system for centrally managing the
Group’s cash on a day-to-day basis and for minimising financial risk by
offering a fully integrated management solution for cash and payments.
The Group monitors real and forecast cash flows for each subsidiary on
a monthly basis, in France and in other countries. These reviews cover
the forecasts for the main cash flows related to operating, financing
and investing activities.
In 2015, the Group deployed a web-based system for cash flow
consolidation, reporting and analysis for most of the Group’s consolidated
entities, which provides specific responses for highly operational issues:
●
building and structuring processes for monitoring “sliding” and
updated cash flow forecasting;
●
standardising and simplifying the reporting and data collection
processes;
●
analysing, for a given period, gaps between actual and forecast
figures;
●
easily dealing with the other issues that arise from the Group’s activities
(cash pooling, inter-company transactions, multiple currencies,
identification of cash and non-cash flows).
Financial commitments
Financial commitments – including off-balance sheet commitments –
require prior approval. In addition, as part of the accounts closure
process, the operating units are required to list all of the commitments
they have given and received.
Capital expenditure
A capital expenditure authorisation procedure covering all capex
categories is applicable to all Group subsidiaries. Given the Group’s
business, these expenditures are limited and mainly concern computer
hardware and software.
Insurance
The list of insurable risks and the risk coverage policy are managed
by the Group Legal Affairs Department. Assystem’s Human Resources
Department is responsible for overseeing the specific insurance
programmes applicable to employee expatriation assignments (to
and from France). Entities held by MPH Global Services SAS and
which operate in the Middle East and Africa have their own insurance
programme for their expatriation assignments.
Legal disputes
Legal disputes involving Assystem SA and its subsidiaries are monitored
and reported on a continuous basis by the Group’s Legal Affairs
Department in conjunction with legal experts within the operating
divisions and/or countries. The financial impact of legal disputes is
analysed by the finance directors of each operating division and if
required by the Group’s Finance Department.
Legal management of subsidiaries and equity interests
In 2015, the Corporate Legal Affairs Department deployed the Enablon
software for managing its subsidiaries and equity interests in France,
Germany, Spain, UK and the Middle East, enabling it to:
●
set up a cross-functional and centralised management system for
holdings and subsidiaries, covering financial, legal, accounting and
tax issues;
●
possess software with an integrated data security function;
●
introduce a fast, reliable and powerful tool, which can support the
Group’s international growth strategy and deal with the increasing
complexity of its operations, made available to all support functions
(consolidation, accounting, cash management, tax, country-level
finance directors, legal experts, etc.).
179
ASSYSTEM
FINANCIAL REPORT
2015