Connect - Schneider Electric

6. Statutory Auditors’ report on
CONSOLIDATED FINANCIAL STATEMENTS
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
the consolidated financial statements
This is a free translation into English of the Statutory Auditors’ report on the consolidated fi nancial statements issued in French and it is provided solely
for the convenience of English speaking users. The Statutory Auditors’ report includes information specifi cally required by French law in such reports,
whether modifi ed or not. This information is presented below the audit opinion on the consolidated fi nancial statements and includes an explanatory
paragraph discussing the auditors’ assessments of certain signifi cant accounting and auditing matters. These assessments were considered for the purpose
of issuing an audit opinion on the consolidated fi nancial statements taken as a whole and not to provide separate assurance on individual account balances,
transactions, or disclosures. This report also includes information relating to the specifi c verifi cation of information given in the management report and in
the documents addressed to shareholders. This report should be read in conjunction with, and construed in accordance with, French law and professional
auditing standards applicable in France.
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual
Shareholders’ Meeting, we hereby report to you, for the year ended
December 31, 2011, on:
• the audit of the accompanying consolidated fi nancial statements
of Schneider Electric SA;
• the justifi cation of our assessments;
• the specifi c verifi cation required by French law.
These consolidated fi nancial statements have been approved by
the Management Board. Our role is to express an opinion on these
consolidated fi nancial statements based on our audit.
I – Opinion on the consolidated
financial statements
We conducted our audit in accordance with professional standards
applicable in France; those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
consolidated fi nancial statements are free of material misstatement.
An audit involves performing procedures, using sampling techniques
or other methods of selection, to obtain audit evidence about the
amounts and disclosures in the fi nancial statements. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made, as well as
the overall presentation of the fi nancial statements. We believe that
the audit evidence we have obtained is suffi cient and appropriate to
provide a basis for our audit opinion.
In our opinion, the consolidated fi nancial statements give a true and
fair view of the assets and liabilities and of the fi nancial position of
the Company as at December 31, 2011 and of the results of its
operations for the year then ended in accordance with IFRS, as
adopted by the European Union.
II – Justification of assessments
In accordance with the requirements of article L. 823-9 of French
Commercial Code (Code de commerce) relating to the justifi cation
of our assessments, we bring to your attention the following matters:
• Note 1.8 to the consolidated fi nancial statements explains the
method for recognizing research and development costs and
describes the criteria under which development costs may
be capitalized. We reviewed the data and assumptions used
to identify projects that qualify for capitalization, as well as the
Group’s calculations, and verifi ed that adequate disclosure is
made in the notes to the consolidated fi nancial statements.
• As explained in notes 1.10 and 8 to the consolidated fi nancial
statements, intangible assets and goodwill are tested for
impairment at least once a year and when factors exist indicating
that the related assets may have suffered a loss of value. We
analysed, on a test basis, the indicators of a loss of value and the
other information evidencing the absence of any loss of value. We
reviewed the data, assumptions used, and calculations made,
and verifi ed that adequate disclosure is made in the notes to the
consolidated fi nancial statements.
• As indicated in notes 1.15 and 16 to the consolidated fi nancial
statements, future tax benefi ts arising from the utilization of tax
loss carry forwards are recognized only when they can reasonably
be expected to be realized. We verifi ed the reasonableness of the
assumptions used to produce estimate of future taxable income
used to support assessments of the recoverability of these
deferred tax assets.
• Notes 1.18 and 22 describe the method for valuing pensions
and other post-employment obligations. Actuarial valuations
were performed for these commitments. We reviewed the data,
assumptions used, and calculations made, and verifi ed that
adequate disclosure is made in the notes to the consolidated
fi nancial statements.
• Note 7 “Restructuring costs” states the amount of restructuring
costs recorded in 2011. We verifi ed that, based on currently
available information, these costs concern restructuring measures
initiated or announced before December 31, 2011, for which
provisions have been recorded based on an estimate of the costs
to be incurred. We also reviewed the data and assumptions used
by the Group to make these estimates.
These assessments were made as part of our audit of the
consolidated fi nancial statements taken as a whole and therefore
contributed to the opinion we formed which is expressed in the fi rst
part of this report.
III – Specific verification
As required by law we have also verifi ed in accordance with
professional standards applicable in France the information
presented in the Group’s management report.
We have no matter to report as to its fair presentation and its
consistency with the consolidated fi nancial statements.
Courbevoie and Paris-La Défense, February 21, 2012
The Statutory Auditors
French original signed by
Mazars Ernst & Young et Autres
David CHAUDAT Yvon SALAÜN
2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
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