SFIL Annual financial report 2018

Annual financial statements in accordance with French GAAP I 4 131 Annual Financial Report 2018 SFIL Management report Report on corporate governance Consolidated financial statements in accordance with IFRS Annual financial statements in accordance with French GAAP Shareholders’ Meeting of May 29, 2019 General information Verification of the Management Report and of the Other Documents Provided to Shareholders We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French law. Information provided in the Management Report and in the Other Documents Provided to the Shareholders with respect to the financial position and the financial statements We have no matters to report as to the fair presentation and the consistency with the financial statements of the informa- tion given in the management report of Board of Directors and in the other documents provided to Shareholders with respect to the financial position and the financial statements. Based on this work, the fair presentation and the consist- ency with the financial statements of the information relat- ing to payment deadlines mentioned in article D.441-4 of the French Commercial Code ( Code de commerce ) lead us to make the following remark: as stated in the management report, the information does not include bank transactions and related transactions, as your company considers that they do not fall within the scope of the information to be provided. Report on Corporate Governance We attest that the Board of Directors’ Report on Corporate Governance sets out the information required by articles L.225-37-3 and L.225-37-4 of the French Commercial Code ( Code de commerce ). Concerning the information given in accordance with the requirements of article L.225-37-3 of the French Commer- cial Code ( Code de commerce ) relating to remunerations and benefits received by the directors and any other com- mitments made in their favour, we have verified its consist- ency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your company from controlling and controlled companies. Based on this work, we attest the accuracy and fair presentation of this information. Report on Other Legal and Regulatory Requirements Appointment of the Statutory Auditors We were appointed as Statutory Auditors of SFIL by the annual general meeting held in January 29, 2013 for DELOITTE ET ASSOCIES and in May 31, 2017 for ERNST & YOUNG et Autres. As of December 31, 2018 DELOITTE & ASSOCIES and ERNST & YOUNG et Autres were in the 6 th  year and the 2 nd  year of total uninterrupted. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting principles, and for such internal con- trol as management determines is necessary to enable the preparation of financial statements that are free from mate- rial misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to con- tinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the Com- pany or to cease operations. The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks management systems and where applica- ble, its internal audit, regarding the accounting and financial reporting procedures. The financial statements were approved by the Board of Directors. Statutory Auditors’ Responsibilities for the Audit of the Financial Statements Objectives and audit approach Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are con- sidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As specified in article L.823-10-1 of the French Commercial Code ( Code de commerce ), our statutory audit does not include assurance on the viability of the Company or the quality of management of the affairs of the Company. As part of an audit conducted in accordance with profes- sional standards applicable in France, the statutory auditor exercises professional judgment throughout the audit and furthermore: •  Identifies and assesses the risks of material misstate- ment of the financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the inter- nal control. •  Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the financial statements. • Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast sig- nificant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evi- dence obtained up to the date of his audit report. How- ever, future events or conditions may cause the Company