Chrysler 2003 Annual Report Download - page 159

158 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
All the other investments in subsidiaries have a book value that is less than or equal to the stockholders’ equity determined in
accordance with the aforesaid principles.
Other securities
These consist of listed Treasury securities pledged to fund scholarship grants.
At December 31, 2003, their book value totaled 75 thousand euros (based on their quotations at December 30, 2003), in line with
the previous year.
As regards fixed assets, the tables at the end of these Notes to the Financial Statements include the following:
❚the additional information on cost, upward adjustments, writedowns and amortization and depreciation required under Article 2427
of the Italian Civil Code; and
❚as required under Article 10 of Law No. 72 of March 19, 1983, a mention of the assets held at December 31, 2003 which have been
adjusted for inflation pursuant to the relevant laws.
Current assets
4 Inventories
This item consists of costs incurred in connection with the High-Speed Railway Project. Fiat, as general contractor, has signed
contracts with Treno Alta Velocità – T.A.V. S.p.A. (which, in turn, had received the order from F.S. S.p.A. - Italian State Railways) for the
executive design and construction of two high-speed rail lines (Bologna-Florence and Turin-Milan) for a contract price of 3,638 million
euros and 4,373 million euros, respectively.
Fiat S.p.A. has entrusted the CAV.E.T. and CAV.TO.MI. consortia with the design and execution of works, retaining responsibility
for coordination and organization, while project management was subcontracted. The contract for the job connected to the Turin-
Novara line is still in course of definition with the CAV.TO.MI. Consortium.
Financing of the project is carried out by means of advances paid by T.A.V. S.p.A. to Fiat S.p.A., which then transfers to the two
consortia the net amounts after deducting its fee (about 3.8%).
The following items are included under Inventories:
❚Contract work in progress
This item, which totaled 74,402 thousand euros at December 31, 2003, refers for 48,346 thousand euros (42,673 thousand euros
at December 31, 2002) to the Florence-Bologna line and for 26,056 thousand euros (11,691 thousand euros at December 31, 2002)
to the Turin-Novara line. The item includes cumulative costs for coordination, organization, and project management work. The
increase in contract work in progress totaled 20,038 thousand euros with respect to the end of 2002.
❚Advances to suppliers
Advances totaled 5,162,515 thousand euros and include disbursements made to the Alta Velocità Emilia Toscana – CAV.E.T.
(2,766,064 thousand euros) and Alta Velocità Torino-Milano – CAV.TO.MI. Consortia (2,396,451 thousand euros) mainly for work
completed and contractual advances. Work completed as at December 31, 2003 totaled 4,583,284 thousand euros. Of this amount,
the Bologna-Florence line accounted for 2,491,634 thousand euros (2,151,803 thousand euros at December 31, 2002) and the Turin-
Novara sub-line for 2,091,650 thousand euros (763,024 thousand euros at December 31, 2002).
This item shows an increase of 1,451,526 thousand euros from December 31, 2002, as a result of the advances for work completed
during the fiscal year paid to CAV.E.T. for 305,024 thousand euros and to CAV.TO.MI. for 1,146,502 thousand euros.
As explained later, the item Advances on the liabilities side of the balance sheet includes contractual advances totaling 5,371,032
thousand euros paid by the bidder company Treno Alta Velocità – T.A.V. S.p.A.