Form 20-F 2005

36. Use of estimates
In order to prepare financial reports in accordance with generally accepted accounting principles, Rhodia management
must make estimates and assumptions that affect not only the amounts shown for assets and liabilities and the information
provided on possible assets and liabilities at the date the reports are prepared, but also the amounts shown for income and
expense for the period.
Management continually revises its estimates and assumptions on the basis of past experience and various other factors
that it deems reasonable. Its judgments as to the carrying amount of asset and liability items are based on these estimates and
assumptions. Actual results could differ significantly from these estimates if conditions prove different from those assumed.
The sensitivity of the various items presented in the Consolidated Financial Statements is described in the notes relating to
such items.
37. Scope of consolidation
In 2005, the scope of consolidation included 138 companies, including 125 subsidiaries, 9 jointly controlled entities, and
4 associates.
Subsidiaries Country %
RHODIA ACETOW GMBH Germany 100.00
RHODIA DEUTSCHLAND GMBH Germany 100.00
RHODIA GMBH Germany 100.00
RHODIA PERFORM.FIBRES GMBH Germany 100.00
RHODIA SILICON GMBH Germany 100.00
RHODIA SPECIALTY SILICON GMBH Germany 100.00
RHODIA POLIAMIDA SUCURSAL ARGENTINA Argentina 100.00
RHODIA CHEMICALS PTY Australia 100.00
RHODIA AUSTRALIA PTY Australia 100.00
RHODIA BELGIUM Belgium 100.00
ALAVER S.A. Brazil 100.00
RHODIA BRAZIL LTDA Brazil 100.00
RHODIA POLIAMIDA BRASIL Brazil 100.00
RHODIA POLIAMIDA LTDA Brazil 100.00
RHOPART - PART SERVICIOS E COMERCIO LTDA Brazil 100.00
ZAMIN COMPANY S/A Brazil 100.00
RHODIA CANADA INC Canada 100.00
RHODIA ENGINEERING PLASTICS INC - CAD Canada 100.00
LUOPING PHOSPHORUS CHEMICAL China 50.00
RHODIA (SHANGHAI) INTERN. TRADING CO LTD China 100.00
RHODIA CHINA CO LTD China 100.00
RHODIA PERFUMERY WUXI CO LTD China 100.00
RHODIA SILICA QINGDAO CO LTD China 100.00
F-72 Form 20 - F 2005 - Rhodia