Vodafone 2013 Annual Report Download - page 86

Directors’ statement of responsibility
Financial statements and accounting records
Company law of England and Wales requires the directors to prepare
nancial statements for each nancial year which give a true and fair
view of the state of affairs of the Company and of the Group at the end
of the nancial year and of the prot or loss of the Group for that period.
In preparing those nancial statements the directors are required to:
a select suitable accounting policies and apply them consistently;
a make judgements and estimates that are reasonable and prudent;
a state whether the consolidated nancial statements have been
prepared in accordance with International Financial Reporting
Standards (‘IFRS’) as issued by the International Accounting Standards
Board (‘IASB’), in accordance with IFRS as adopted for use in the
EU and Article 4 of the EU IAS Regulations;
a state for the Company nancial statements whether applicable
UKaccounting standards have been followed; and
a prepare the nancial statements on a going concern basis unless
it isinappropriate to presume that the Company and the Group will
continue in business.
The directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the nancial
position of the Company and of the Group and to enable them to ensure
that the nancial statements comply with the Companies Act 2006
andArticle 4 of the EU IAS Regulation. They are also responsible for the
system of internal control, for safeguarding the assets of the Company
and the Group and, hence, for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Directors’ responsibility statement
The Board conrms to the best of its knowledge:
a the consolidated nancial statements, prepared in accordance with
IFRS as issued by the IASB and IFRS as adopted by the EU, give a true
and fair view of the assets, liabilities, nancial position and prot
or loss of the Group; and
a the directors’ report includes a fair review of the development and
performance of the business and the position of the Group together
with a description of the principal risks and uncertainties that it faces.
The directors are responsible for preparing the annual report
in accordance with applicable law and regulations. Having taken advice
from the Audit and Risk Committee, the Board considers the report and
accounts, taken as a whole, as fair, balanced and understandable and
that it provides the information necessary for shareholders to assess the
Company’s performance, business model and strategy.
Neither the Company nor the directors accept any liability to any person
in relation to the annual report except to the extent that such liability
could arise under English law. Accordingly, any liability to a person who
has demonstrated reliance on any untrue or misleading statement
or omission shall be determined in accordance with section 90A and
schedule 10A of the Financial Services and Markets Act 2000.
Disclosure of information to auditor
Having made the requisite enquiries, so far as the directors are aware,
there is no relevant audit information (as dened by section 418(3) of the
Companies Act 2006) of which the Company’s auditor is unaware and
the directors have taken all the steps they ought to have taken to make
themselves aware of any relevant audit information and to establish that
the Company’s auditor is aware of that information.
Going concern
After reviewing the Group’s and Company’s budget for the next nancial
year, and other longer term plans, the directors are satised that, at the
time of approving the nancial statements, it is appropriate to adopt
the going concern basis in preparing the nancial statements. Further
detail is included within “Commentary on the consolidated statement
of cash ows” on page 97, notes 24 and A6 to the consolidated nancial
statements, and “Liquidity and capital resources” on pages 155 to 158
which include disclosure in relation to the Group’s objectives, policies
and processes for managing its capital; its nancial risk management
objectives; details of its nancial instruments and hedging activities;
and its exposures to credit risk and liquidity risk.
Management’s report on internal control
over nancialreporting
As required by section 404 of the Sarbanes-Oxley Act management
is responsible for establishing and maintaining adequate internal control
over nancial reporting for the Group. The Group’s internal control over
nancial reporting includes policies and procedures that:
a pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reect transactions and dispositions of assets;
a are designed to provide reasonable assurance that transactions
arerecorded as necessary to permit the preparation of nancial
statements in accordance with IFRS, as adopted by the EU and IFRS
as issued by the IASB, and that receipts and expenditures are being
made only in accordance with authorisation of management and the
directors of the Company; and
a provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use or disposition of the Group’s assets that
could have a material effect on the nancial statements.
Any internal control framework, no matter how well designed, has inherent
limitations including the possibility of human error and the circumvention
or overriding of the controls and procedures, and maynot prevent or detect
misstatements. Also projections of any evaluationof effectiveness to future
periods are subject to the riskthatcontrols may become inadequate
because of changes in conditions or because the degree of compliance
with the policies orprocedures may deteriorate.
Management has assessed the effectiveness of the internal control
overnancial reporting at 31 March 2013 based on the Internal Control
– Integrated Framework, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (‘COSO’). Based
on management’s assessment management has concluded that the
internal control over nancial reporting was effective at 31 March 2013.
The assessment excluded the internal controls over nancial reporting
relating to Cable & Wireless Worldwide plc (‘CWW’) because it became
a subsidiary during the year as described in note 11 to the consolidated
nancial statements. CWW will be included in the Group’s assessment
at 31 March 2014.
Key sub-totals that result from the consolidation of CWW, whose internal
controls have not been assessed, are total assets of £2,877 million,
net assets of £1,315 million, revenue of £1,234 million and loss for the
nancial year of £151 million.
Management has also excluded from its assessment the internal control
over nancial reporting of entities which are accounted for under the
equity method, including Verizon Wireless (‘VZW’), because the Group
does not have the ability to dictate or modify the controls at these
entities and does not have the ability to assess, in practice, the controls
at these entities. Accordingly, the internal controls of these entities,
which contributed a net prot of £6,477 million (2012: £4,963 million)
to the prot for the nancial year, have not been assessed, except relating
to controls over the recording of amounts relating to the investments
that are recorded in the Group’s consolidated nancial statements.
During the period covered by this document there were no changes
in the Group’s internal control over nancial reporting that have
materially affected or are reasonably likely to materially affect the
effectiveness of the internal controls over nancial reporting.
The Group’s internal control over nancial reporting at 31 March 2013
has been audited by Deloitte LLP, an independent registered public
accounting rm who also audit the Group’s consolidated nancial
statements. Their audit report on internal control over nancial
reporting is on page 85.
By Order of the Board
Rosemary Martin
Company Secretary
21 May 2013
84 Vodafone Group Plc
Annual Report 2013