PDF - Somero Enterprises

Section 4Financial Statements: Somero Enterprises GroupIndependent Auditor’s ReportTo the Board of directors and shareholders of Somero Enterprises Group, Jaffrey, New Hampshire.We have audited the accompanying combined balance sheets of Somero Enterprises Group (the “Somero Business”), a wholly-owned divisionof Dover Corporation (“Dover”) as of 31 December 2003, and 2004 and 10 August 2005 and the related statements of operations, net parentcompany investment and cash flows for the years ended 31 December 2003, 31 December 2004 and the period, from 1 January 2005through 10 August 2005. These financial statements are the responsibility of the Somero Business management. Our responsibilityis to express an opinion on these financial statements based on our audits.We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Somero Business internalcontrol over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.In our opinion, such combined financial statements present fairly, in all material respects, the financial position of the Somero Businessas of 31 December 2003, 31 December 2004 and 10 August 2005 and the results of its operations and its cash flows for the years ended31 December 2003, 31 December 2004 and for the period from 1 January 2005 through 10 August 2005 in conformity with accountingprinciples generally accepted in the United States of America.As discussed in Notes 1 and 2, the Somero Business financial statements have been derived from the financial statements of Dover andreflect certain assumptions and allocations. The financial position, results of operations and cash flows of the Somero Business could differfrom those that would have resulted had the Somero Business operated autonomously of Dover. Also, as discussed in Note 17, on 10 August2005, the Somero Business was sold to an affiliate of The Gores Group, LLC.Deloitte & Touche LLP22 September 2006Boston, Massachusetts45Somero Enterprises, Inc.Annual Report and Accounts 2006