ESB Annual Report 2012 - (Page 65)

BUSINESS OVERVIEW OPERATING & FINANCIAL REVIEW CORPORATE SOCIAL RESPONSIBILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS ESB Annual Report 2012 65 01 INDEPENDENT AUDITOR’S REPORT TO THE STOCKHOLDERS OF ELECTRICITY SUPPLY BOARD (ESB) As the auditor appointed by the Minister for Communications, Energy and Natural Resources with the consent of the Minister for Finance, under Section 7 of the Electricity (Supply) Act 1927, we have audited the Group and Parent financial statements (the ‘‘financial statements’’) of ESB for the year ended 31 December 2012 which comprise the Group income statement, the Group statement of comprehensive income, the Group and Parent balance sheets, the Group and Parent statements of changes in equity, the Group and Parent cash flow statements, the statement of accounting policies and the related notes. The financial reporting framework that has been applied in their preparation is Irish law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and, as regards the Parent financial statements, as applied in accordance with the provisions of the Companies Acts 1963 to 2012. This report is made solely to the stockholders of ESB, as a body, in accordance with section 193 of the Companies Act 1990, made applicable to ESB by virtue of the Regulations adopted by it as its governing regulations under the Electricity (Supply) Act, 1927, as amended by the Electricity (Supply) (Amendment) Act 2004. Our audit work has been undertaken so that we might state to the stockholders of ESB those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ESB and its stockholders, as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF BOARD MEMBERS AND AUDITOR As explained more fully in the Statement of Board Members’ Responsibilities set out on page 64, the Board Members are responsible for the preparation of the financial statements giving a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Ethical Standards for Auditors issued by the Auditing Practices Board. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s and Parent’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS In our opinion: „ the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the EU, of the state of the Group’s affairs as at 31 December 2012 and of its profit for the year then ended; „ the Parent’s balance sheet gives a true and fair view in accordance with IFRSs as adopted by the EU, as applied in accordance with the provisions of the Companies Acts 1963 to 2012, as applied by the Electricity (Supply) Acts 1927 to 2004, of the state of the Parent’s affairs as at 31 December 2012; and „ the financial statements have been properly prepared in accordance with the provisions of the Companies Acts 1963 to 2012 as applied by the Electricity (Supply) Acts 1927 to 2004, and as regards the Group’s financial statements Article 4 of the IAS Regulations. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY THE COMPANIES ACTS 1963 TO 2012 We have obtained all the information and explanations which we considered necessary for the purposes of our audit. The Parent’s balance sheet is in agreement with the books of account and, in our opinion, proper books of account have been kept by the Parent. In our opinion the information given in the Board Members’ report and the description in the annual corporate governance statement of the main features of the internal control and risk management systems in relation to the process for preparing the consolidated Group financial statements is consistent with the financial statements. In our opinion the information given in the Board Members’ report is consistent with the financial statements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following: Under the Companies Acts 1963 to 2012 we are required to report to you if, in our opinion the disclosures of Board Members’ remuneration and transactions specified by law are not made. Under the Code of Practice for the Governance of State Bodies (‘the Code’) we are required to report to you if the statement regarding the system of internal financial control required under the Code as included in the Corporate Governance Statement on pages 50 to 55 does not reflect the Group’s compliance with paragraph 13.1(iii) of the Code or if it is not consistent with the information of which we are aware from our audit work on the financial statements and we report if it does not. At the request of the Board Members, we review: „ the board members’ statement, set out on page 50 to 55, in relation to going concern; „ the part of the Corporate Governance Statement relating to the Group’s compliance with the nine provisions of the UK Corporate Governance Code and the two provisions of the Irish Corporate Governance Annex specified for our review; „ the six specified elements of board members’ remuneration disclosures in the report to shareholders by the Board. 05 Patricia Carroll For and on behalf of KPMG Chartered Accountants, Statutory Audit Firm Dublin, Ireland 27 February 2013 03 02 04

Table of Contents for the Digital Edition of ESB Annual Report 2012

ESB Annual Report 2012
Contents
Business Overview
Chairman’s Statement
Chief Executive Review
Our Strategy and Business Model
Operating and Financial Review
Operating Environment
Finance Review
Business Unit Sections: ESB Generation and Wholesale Markets
ESB Networks
NIE
Electric Ireland
Corporate Social Responsibility
Introduction from Executive Director, People and Sustainability
Sustainability Charter
Energy Usage 2012
ESB Innovation
Equality and Diversity
Our People
Our Community
Corporate Governance
Chairman’s Corporate Governance Statement
The Board
Executive Team
Board Members’ Report
Risk Management Report
Statement of Board Members’ Responsibilities
Independant auditor’s report to the stockholders of Electricity Supply Board (ESB)
Statement of Accounting Policies
Financial statements
Prompt Payments Act

ESB Annual Report 2012

https://www.nxtbookmedia.com