APC 2006 Annual Report Download - page 166

4. Auditors' report
on the financial statements
Company financial statements at December 31, 2006
This is a free translation into English of the statutory
auditors’ report issued in the French language and is
provided solely for the convenience of English speak-
ing readers.This report includes information specifical-
ly required by French law in all audit reports, whether
qualified or not, and this is presented below the opin-
ion on the financial statements. This information
includes explanatory paragraphs discussing the audi-
tors’ assessment of certain significant accounting mat-
ters. These assessments were made for the purpose
of issuing an opinion on the financial statements taken
as a whole and not to provide separate assurance on
individual account captions or on information taken
outside of the consolidated financial statements. The
report also includes information relating to the specific
verification of information in the group management
report. This report should be read in conjunction with,
and is construed in accordance with French law and
professional auditing standards applicable in France.
To the Shareholders,
In compliance with the assignment entrusted to us by
your shareholders’ annual general meeting, we hereby
report to you, for the year ended December 31, 2006,
on:
The audit of the accompanying financial statements
of Schneider Electric SA.
The justification of our assessments.
The specific verifications and information required by
law.
These financial statements have been approved by the
Management Board. Our role is to express an opinion
on these financial statements based on our audit.
I - Opinion on
the financial statements
We conducted our audit in accordance with the profes-
sional standards applicable in France. Those stan-
dards require that we plan and perform the audit to
obtain reasonable assurance about whether the finan-
cial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the finan-
cial statements. An audit also includes assessing the
accounting principles used and significant estimates
made by the management, as well as evaluating the
overall financial statements presentation. We believe
that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements present fairly,
in all material respects, the financial position of the
company at December 31, 2006, and the results of its
operations for the year then ended in accordance with
the accounting rules and principles applicable in
France.
II - Justification of assessments
In accordance with the requirements of article L. 823-9
of French Commercial Code (Code de commerce)
relating to the justification of our assessments, we
bring to your attention the following matters:
As part of our assessment of the accounting principles
and methods used by your company, we verified the
appropriateness of the principles and methods used to
value shares in subsidiaries and affiliates, described in
the section on accounting principles and in note 2 to
the financial statements, and obtained assurance that
they were correctly applied.
The assessments were thus made in the context of the
performance of our audit of the financial statements,
taken as a whole, and therefore contributed to the for-
mation of our audit opinion expressed in the first part
of this report.
III - Specific verifications
and information
We have also performed the specific verifications
required by law in accordance with professional stan-
dards applicable in France.
We have no matters to report regarding:
The fair presentation and the conformity with the
financial statements of the information given in the
Management Board’s report, and in the documents
addressed to the shareholders with respect to the
financial position and the financial statements.
The fair information given in the Management
Board’s report relating to the compensation and bene-
fits paid to the Corporate Officers concerned and the
engagement granted to them on the occasion of the
arrival, suspension or change of duties or subsequent-
ly to it.
In accordance with French Law, we have ensured that
the required information concerning the purchase of
investments and controlling interests and the names of
the principal shareholders has been properly disclosed
in the Management Board’s report.
Courbevoie and Neuilly sur Seine, February 20, 2007
The Statutory Auditors
Mazars & Guérard Ernst & Young et Autres
Pierre Sardet Christian Chochon
Jean-Louis Simon Pierre Jouanne
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