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Part 1 - General presentation of the Group
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4. Control measures put in place
Hamon takes measures in order to manage risks in the
best way, with a suitable risk management policy based
on the nature of its activities:
i. Implementation of an adequate internal control
process at the Group level.
ii. Analysis of technical, financial and execution risks,
based on a check list that is tailored to the
different Business Units; this analysis is a
prerequisite for the provision of quotations to our
customers and is based on a system of delegation
of authority.
iii. Monthly monitoring, through business meetings,
of progress of different projects within the Group.
iv. Monthly and quarterly reporting on management,
disputes and treasury.
v. Setting up of a robust management control system
for the Group to monitor the progress of projects
and activities in the Group and to issue a warning
or an alert if there is a problem.
vi. Quarterly review by the Executive Committee of
the state of the business, claims and risks.
In terms of covering monetary risks, Hamon has adopted
a risk management policy for interest rates, exchange
rates and counter party risks:
i. Interest rate risks: they are managed through the
use of interest rate swaps (IRS) when the longterm
rates exceed some limits set by the Group.
ii. Exchange rate risks: our positions in foreign
currencies resulting from the execution of our
construction contracts are covered by derivative
instruments (forward exchange rate contracts,
swaps, NDF) when they exceed the limits set by
the Group.
iii. Counter party risks: short-term deposits and
investments must comply with safety and liquidity
criteria and only thereafter with return criteria.
The monetary risk management policy is set by the CFO
of the Group and reviewed on a regular basis.
5. Financial information and communication
The gathering of financial information is carried out
as follows:
1. A planning highlights the tasks which have to be
performed in the framework of the Company’s
monthly, quarterly, half-year and annual closings and
those of its subsidiaries, as well as their deadlines.
The Group has a check list of actions to be monitored
by the financial department. In addition, each subsidiary
draws up its own check list, enabling it to meet its
specific needs.
2. Under the supervision of the financial managers at
the subsidiaries, the local teams produce the books
of accounts. The accounts are kept either using the
ERP of the Group – JD Edwards – or, depending on
the roll out program or the size of the subsidiary,
using software packages purchased locally and
subject to suitable support contracts, or for the
smallest entities, through external providers. It should
be noted that Hamon has a “disaster recovery” plan
and a “business continuity” plan which have been
validated by auditors in IT safety.
3. The Controlling team of the subsidiary checks the
accuracy of the figures and reports the data. The
figures are checked using the following procedures:
i. Consistency tests via comparisons with past figures
or those contained in the budget;
ii. Spot-checks of transactions and other checks
depending on their materiality.
4. At the central level, the consolidation is performed
with the help of a software package – SAFRAN –
through which the input is submitted locally by the
subsidiaries. The consolidation and reporting team
prepares the accounts and uses random checks and
consistency tests to verify the basic financial information.
This central Controlling Team takes an active part,
at least twice a year, in the business reviews of each
of the subsidiaries of the Business Units for which it
is responsible.
5. Communication with members of staff and different
Hamon employees is adapted to the size of the
Company. It is mainly based on different press releases
and the sending of internal messages via email,
business meetings or even verbal communications
between management and staff. In 2012, the Group
put in place an intranet, called IConnect.
6. To ensure rapid communication and the equal treatment
of shareholders, Hamon publishes the agenda
and the minutes of general shareholders meetings,
half-year and annual financial results, press releases,
articles of association, the Corporate Governance
Charter and the annual report on its website.