Annual report 2010 - Imperial Tobacco Group

Directors’ Report: Other Information continuedStrategy Performance Governance Financialsand (b) as a result of the change of control, there is either: (i)a reduction to a non-investment grade rating or withdrawal ofthe investment grade rating of the notes which is not raisedagain, reinstated to or replaced by an investment grade ratingduring the change of control period specified in the finalterms; or (ii) to the extent that the notes are not rated at thetime of the change of control, the Issuer fails to obtain aninvestment grade credit rating of the notes within the changeof control period as a result of the change of control.The bonds issued in such manner are as follows:– 15 September 2008 £600,000,000 8.125 per centguaranteed notes due 2024;– 15 September 2008 €750,000,000 7.25 per centguaranteed notes due 2014;– 17 February 2009 £1,000,000,000 9 per cent guaranteednotes due 2022;– 17 February 2009 €1,500,000,000 8.375 per centguaranteed notes due 2016;– 24 June 2009 £500,000,000 7.75 per cent guaranteednotes due 2019; and– 24 June 2009 €1,250,000,000 5 per cent guaranteednotes due 2012.Charitable and Political DonationsWe have continued to support the communities in which weoperate by donating £3 million (2009: £3 million) to charitablecauses of which £2 million (2009: £2 million) was in respectof the UK through the Charities Aid Foundation.No political donations were made to EU political parties,organisations or candidates (2009: Nil).Creditor Payment PolicyOur current policy concerning the payment of the majorityof our trade creditors is to follow the CBI’s Prompt PayersCode (copies are available from the CBI, Centre Point,103 New Oxford Street, London WC1A 1DU). For othersuppliers, our policy is to:– agree the terms of payment with those suppliers whenagreeing the terms of each transaction;– ensure that those suppliers are made aware of the terms ofpayment by inclusion of the relevant terms in contracts; and– pay in accordance with our contractual and otherlegal obligations.This policy applies to all payments to creditors for revenueand capital supplies of goods and services withoutexception. Wherever possible UK subsidiaries follow thesame policy and international subsidiaries are encouragedto adopt similar policies by applying local best practices.We are an approved signatory of the Prompt Payment Codesponsored by the Department for Business Innovationand Skills.The amount of trade creditors outstanding as at 30September 2010 was equivalent to 43 days (2009: 44 days)of trade purchases.Research and DevelopmentWe support our sales growth strategy by our investmentin research and development, which brings innovativeimprovements to the Group, both in the products supplied tothe consumer and in production and marketing techniques.Auditors and Disclosure of Information to AuditorsEach of the Directors in office at the date of approval of thisAnnual Report and Accounts confirms that:– so far as they are aware, there is no relevant auditinformation (that is information needed by the Company’sAuditors in connection with preparing their report) of whichthe Company’s Auditors are unaware; and– each has taken all the steps that they ought to have takenas a Director in order to make himself/herself aware of anyrelevant audit information and to establish that theCompany’s Auditors are aware of that information.A resolution to reappoint PricewaterhouseCoopers LLP asAuditors to the Company will be proposed at the AGM.Disclosure and Transparency RulesThe Directors confirm that to the best of their knowledge:– the financial statements, prepared in accordance with theapplicable set of accounting standards, give a true and fairview of the assets, liabilities, financial position and profit orloss of the Company and the undertakings included in theconsolidation taken as a whole; and– the Directors’ Report: Strategy, Performance andGovernance sections on pages 6 to 95 includes a fairreview of the development and performance of thebusiness and the position of the Company and theundertakings included in the consolidation taken as awhole, together with a description of the principal risksand uncertainties that they face.Statement of Directors’ ResponsibilitiesThe Directors are responsible for preparing the AnnualReport, the Directors’ Remuneration Report and the Groupand the parent Company financial statements in accordancewith applicable law and regulations.Company law requires the Directors to prepare financialstatements for each financial year. Under that law theDirectors have elected to prepare the Group financialstatements in accordance with International FinancialReporting Standards (IFRSs) as adopted by the EuropeanUnion, and the parent Company financial statements inaccordance with United Kingdom Generally AcceptedAccounting Practice (United Kingdom Accounting Standardsand Applicable Law). Under company law, the Directorsmust not approve the financial statements unless they aresatisfied that they give a true and fair view of the state ofaffairs of the Group and the parent Company and of theprofit or loss of the Group for that period. In preparing thesefinancial statements, the Directors are required to:– select suitable accounting policies and then applythem consistently;– make judgements and accounting estimates that arereasonable and prudent;74