Saint Gobain - Registration document 2016

7 RISKS AND CONTROL 2. Internal control

2.5.6

Organization of the Group’s consolidation process

directly to the Group Consolidation and Reporting Department. The consolidation is organized by consolidation levels with hierarchical relationships with the head of each Sector, and reporting

DELEGATIONS BASE

HOLDING COMPANIES

Innovative Materials

Construction Products

Building Distribution

High-Performance Materials

Flat Glass

the accounts Processing information and control of

2.5.7

Group’s intranet for Group general management and the It feeds data into a secure reporting system accessible on the contributing to internal control of information output. management of the Sectors and General Delegations,

submitted to General Management every month. timetable set by the Company. The account packages are Each subsidiary submits its accounts in accordance with the General Delegation concerned, then transmitted to the checked and processed at Sector level, reviewed by the of the Group’s accounts and records the necessary Consolidation Department, which performs an overall review consolidation adjustments. These consolidated accounts are standards. the external auditors in accordance with professional auditing The consolidated financial statements are then examined by 2.5.8 matrix management structure. The software is regularly and highly secure database that is aligned with the Group’s updated to guarantee the financial information system’s consolidation software equipped with a powerful, efficient The consolidated financial statements are prepared using been put in place to ensure that the overall system is secure, sustainability. A tightly controlled access procedure has also quarter. and a comprehensive access review is performed every levels of consolidation and transparently centralizing data in This tool is capable of managing a database with several the Group database. Consolidation tools

2.5.9

A reporting process that contributes statements to the reliability of financial

balance sheets are reviewed by finance executives from the workload at June 30 and December 31. Hard close results and closes are performed at May 31 and October 31, to reduce the in the same detail and in accordance with the same principles Finance Department, the Sectors and the General Delegations interim consolidated financial statements are reliable. Hard The monthly reporting process ensures that the annual and any errors and their adjustment during the actual close. auditors. This procedure helps to ensure early detection of June 30 and December 31 and are reviewed by the external A consolidated report is prepared each month for the and analyses of material events over the period. Company’s general management, with supporting comments accounts are then analyzed before the final closing dates of as the annual and interim financial statements. The entity’s

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016