FINANCIAL STATEMENTS
Statutory auditors' report on the financial statements
5.4 STATUTORY AUDITORS' REPORT ON THE FINANCIAL
STATEMENTS
For the year ended December 31st 2021
Etablissements Maurel & Prom S.A. Registered office: 51, rue d'Anjou - 75008 Paris
Opinion
EIn compliance with the engagement entrusted to us by your General Shareholders' meeting, we have audited the accompanying financial statements of Etablissements Maurel & Prom S.A. for the year ended December 31st 2021.
In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position
Basis for Opinion
Audit Framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Statutory Auditors' Responsibilities for the Audit of the Financial Statements section of our report.
of the Company as at December 31st 2021 and of the results of its operations for the year then ended in accordance with French accounting principles.
The audit opinion expressed above is consistent with our report to the Audit Committee.
Independence
We conducted our audit engagement in compliance with independence rules applicable to us, for the period from January 1st, 2021 to the date of our report and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 or in the French Code of ethics (code de déontologie) for statutory auditors.
5
2021 Universal Registration Document • MAUREL & PROM
189
5
FINANCIAL STATEMENTS
Rapport des commissaires aux comptes sur les comptes annuels
Justification of Assessments - Key Audit Matters
Due to the global crisis related to the Covid-19 pandemic, the financial statements of this period have been prepared and audited under specific conditions. Indeed, this crisis and the exceptional measures taken in the context of the state of sanitary emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties on their future prospects. Those measures, such as travel restrictions and remote working, have also had an impact on the companies' internal organization and the performance of the audits.
It is in this complex and evolving context that, in accordance with the requirements of Articles L.823-9 and R.823-7 of the
Valuation of equity shares and related receivables
Key audit matter
French Commercial Code (code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements.
Our response
The equity shares and related receivables on the balance sheet as at 31 December 2021 for a net In order to assess the reasonableness of the estimation of current equity, based on theamount of MEUR 448 represent 87% of the company's assets.
information provided to us, our work consisted mainly of verifying that the estimation of theseAs indicated in the note 3 of the financial statements, for companies in exploration phase, equity values determined by the management is based on an appropriate justification of the valuation shares and related receivables are subject to a depreciation for exploration expenses as long as method and the quantified elements used and, according to equity shares concerned, to: no decision of business development or production project was not taken. In the event that there - Verify that the equity selected is consistent with the accounts of the entities that have been
has been evidence of proven reserves and for companies with an oil production activity, the value of equity shares and related receivables is limited to the amount of future revenue discounted at the time of closing.
the subject of an audit or analytical procedures and that the adjustments made, if any, on such equity are based on probative documentation; - Verify the stock exchange share price used;
For other activities, provisions for depreciation of equity shares and related receivables are - Obtain forecasts of cash flow and operating flow for the activities of the entities concerneddetermined taking into account the financial performance of the equity mainly derived from discounted cash flow, evolution of income or their probable resale value.
For listed investments, the value in use is determined by taking also into consideration the stock exchange price.
In this context, and because of the uncertainties in relation with certain elements and inestablished by the management;
- Verify the consistency of the assumptions retained by the management with the data obtained from the reports of independent expertise;
- Verify the main underlying data for the appraisal of future revenues including oil reserves, forecast sales prices, and discount and inflation rates
particular the probability of the forecasts realisation, we considered that the correct valuation of - Verify that the value issued from the cash flow forecast has been adjusted by the amountequity shares and related receivables was a key point in the audit.
Specific Verifications
of the debt of the entity under consideration.
In addition to the appreciation of the equity shares' present value, our works have also included the following works:
- To verify the recoverability of receivables related to investments regarding the analysis performed on equity investments
- To verify the posting of a provision for risks if the company is committed to bear the losses of a subsidiary with a negative net equity.
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations.
Information given in the management report and in the other documents with respect to the financial position and the financial statements provided to the Shareholders
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents with respect to the financial position and the financial statements provided to Shareholders.
We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned in Article D.441-6 of the French Commercial Code (Code de commerce).
Information relating to 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.
Concerning the information given in accordance with the requirements of Article L.225-37-3 of the French Commercial Code (code de commerce) relating to remunerations and benefits received by the directors and any other commitments made in their favour, we have verified its consistency 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 these procedures, we attest the accuracy and fair presentation of this information.
190
MAUREL & PROM • 2021 Universal Registration Document
FINANCIAL STATEMENTS
Rapport des commissaires aux comptes sur les comptes annuels
With respect to the information relating to items that your company considered likely to have an impact in the event of a public takeover bid or exchange offer, provided pursuant to Article L.225-37-5 of the French Commercial Code, we have agreed this information to the source documents communicated to us. Based on these procedures, we have no observations to make on this information.
Other information
In accordance with French law, we have verified that the required information concerning the purchase of investments and controlling interests and the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.
Report on Other Legal and Regulatory Requirements
Format of presentation of the financial statements intended to be included in the Annual Financial Report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by the statutory auditor relating to the annual and consolidated financial statements presented in the European single electronic format, that the presentation of the financial statements intended to be included in the annual financial report mentioned in Article L.451-1-2, I of the French Monetary and Financial Code (code monétaire et financier), prepared under the responsibility of Managing Director, complies with the single electronic format defined in the European Delegated Regulation No 2019/815 of 17 December 2018.
Based on the work we have performed, we conclude that the presentation of the financial statements intended to beincluded in the annual financial report complies, in all material respects, with the European single electronic format.
We have no responsibility to verify that the financial statements that will ultimately be included by your company in the annual financial report filed with the AMF are in agreement with those on which we have performed our work.
Appointment of the Statutory Auditors
We were appointed as statutory auditors of Etablissements Maurel & Prom S.A. by the annual general meeting held on June 12, 2014 for KPMG and on June 14, 2002 for GEA AUDIT.
As at December 31st 2021, KPMG and GEA AUDIT were in the 8th year and 20th year of total uninterrupted engagement.
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 control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue 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 Company 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 applicable, 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 considered 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 notinclude 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 professional standards applicable in France, the statutory auditor exercises professional judgment throughout the audit and furthermore: − Identifies and assesses the risks of material misstatement 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.
5
2021 Universal Registration Document • MAUREL & PROM
191
5
FINANCIAL STATEMENTS
Rapport des commissaires aux comptes sur les comptes annuels
− 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 internal 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 significant doubt on the Company's ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
− Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation.
Report to the Audit Committee
We submit a report to the Audit Committee which includes in particular a description of the scope of the audit and the audit program implemented, as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the accounting and financial reporting procedures that we have identified.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were of most significance in the audit of the financial statements of the current period and which are therefore the key audit matters that we are required to describe in this report.
We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) N° 537/2014, confirming our independence within the meaning of the rules applicable in France such as they are set in particular by Articles L.822-10 to L.822-14 of the French Commercial Code (code de commerce) and in the French Code of Ethics (code de déontologie) for statutory auditors. Where appropriate, we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.
Auditors
192
Paris La Défense, on the18 March 2022 | Paris, on the 18 March 2022 |
The statutory auditors - French original signed by | GEA Audit |
François Quédiniac | Fabienne Hontarrede |
Partner | Partner |
MAUREL & PROM • 2021 Universal Registration Document |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Établissements Maurel & Prom SA published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 12:31:08 UTC.