VINCI - 2005 annual report

CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF THE STATUTORY AUDITORS
ON THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2005
To the Shareholders,
In accordance with our appointment as Statutory Auditors by your Shareholders
General Meeting, we have audited the accompanying consolidated
financial statements of VINCI for the year ended 31 December 2005.
The Board of Directors is responsible for the preparation of the consolidated
financial statements. Our role is to express an opinion on these
financial statements based on our audit.
1. OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS
We conducted our audit in accordance with the auditing standards generally
applicable in France. Those standards require that we plan and perform
the audit in such a way as to obtain reasonable assurance that the consolidated
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements.
2. JUSTIFICATION OF OUR ASSESSMENTS
As required by Article L.823-9 of the French Code of Commerce regarding
disclosure of the reasons for our conclusions, we inform you of the
following:
As shown in Note B.3 to the financial statements, headed “Construction
contracts”, the Group recognises income from long-term contracts using
the percentage of completion method on the basis of the best available
estimates of the final outcome of contracts. If the estimate of the final
outcome of a contract indicates a loss, a provision is made for the loss on
completion. We have assessed the reasonableness of the assumptions used
and the resulting evaluations.
3. SPECIFIC PROCEDURES
These financial statements have been prepared for the first time under the
International Financial Reporting Standards (IFRS) as endorsed by the
European Union. They include data relating to 2004 restated under the
same standards, for comparison.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements give a true and fair
view of the financial position, the assets and liabilities and the results of
the operations of the companies included in the consolidation, in accordance
with the International Financial Reporting Standards as endorsed by
the European Union.
We have also examined the accounting positions adopted by VINCI regarding
the accounting for concessions, for which no particular provisions are
included in the International Financial Reporting Standards as endorsed
by the European Union and we have ascertained that Note B of the Notes
to the consolidated financial statements provides appropriate information
in this regard.
These conclusions were formed as part of our audit of the annual
consolidated financial statements taken as a whole and have therefore
contributed to the formation of our opinion, given in the first part of
this report.
We also performed the procedures to verify the information given in the
Board of Directors’ report on the Group. We have no comments to make
as to its fair presentation and its conformity with the consolidated financial
statements. Neuilly-sur-Seine and Paris, 2 March 2006
The Statutory Auditors
Deloitte & Associés Salustro Reydel
Thierry Benoit KPMG International
Bernard Cattenoz Benoît Lebrun
This is a free translation into English of the Statutory Auditors’ reports issued in the French language and is provided solely for the convenience of English-speaking readers. The Statutory Auditors’ report includes for
the information of the reader, as required under French law in any auditor’s report, whether qualified or not, an explanatory paragraph separate from and presented below the audit opinion discussing the auditors’
assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to
provide separate assurance on individual account caption or on information taken outside of the consolidated financial statements. Such report should be read in conjunction and construed in accordance with French
law and French auditing professional standards.
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