Chrysler 2006 Annual Report Download - page 164

Dear Stockholders:
Article 153 of Legislative Decree No. 58 of February 24, 1998
requires the Board of Statutory Auditors to report the results
of its oversight activity to the Stockholders Meeting, convened
to approve the statutory financial statements, indicating any
omissions or improper transactions it discovered, and
empowers it to put forth motions regarding the financial
statements, their approval and other matters under its
jurisdiction.
This Report is provided in accordance with the
abovementioned provision and pursuant to Article 2429,
Section 2, of the Italian Civil Code.
During the past fiscal year, we performed the duties incumbent
upon us under Article 149 of Legislative Decree No. 58 of
February 24, 1998, and are able to report specific information
on the subjects listed below.
Weattended the meetings of the Board of Directors, where we
received detailed information on the Company’sbusiness and
on the main operating, financial and asset transactions carried
out or in the process of being carried out by the Company
and/or its subsidiaries. In this regard, we determined and
ascertained that all pending or completed transactions
complied with all pertinent provisions of the law and the By-
laws, were not in conflict with any resolution adopted by the
Stockholders Meeting or produced no conflicts of interest,
and were consistent with the principles of sound management.
The Company’s organization is adequate, based on the size
of the Company. As part of our work, we met with the heads
of the various Company Functions and with representatives of
the External Auditors, from whom we obtained comprehensive
information indicating that the Company was complying with
the principles of fair and sound management.
The system of internal control, which is constantly upgraded,
and which has also been upgraded as a response to the
requirements of the Sarbanes-Oxley Act as the Company
is listed on the NYSE, has been created at Group level and
is operational at the Parent Company and its subsidiaries.
We express a favorable opinion on the adequacy of the
Company’s system of internal control, intended as a system
whose task is to check compliance with the internal operating
and administrative procedures adopted to ensure that the
Company is managed correctly and efficiently, while at the
same time identifying, preventing and minimizing financial and
operating risks and the risk of fraud. The Board of Statutory
Auditors attended all Internal Control Committee meetings.
Based on our determinations and on what we ascertained
in previous fiscal years, we further believe that the Company’s
administrative and accounting system is adequate for the
purpose of presenting fairly the results of operations.
The guidelines provided by Fiat S.p.A. to its subsidiaries
pursuant to Article 114, Section 2, of Legislative Decree
No. 58/98 also appear to be adequate.
The Board of Directors provided us with the Report on
Operations for the first half of 2006 within the statutory
deadline and published it in accordance with the formalities
required by Consob. It also complied with statutory
requirements as regards quarterly reports. With regard to
Consob communications, on matters falling under our
jurisdiction, we can confirm the following:
■The information provided by the Directors in their Report
on Operations is comprehensive and complete, as is that
reported in the Appendix to the Notes to the Financial
Statements relating to the effects of the transition to
International Financial Reporting Standards which have
become mandatory for the Company.
■As required by the Consolidated Law on Financial
Intermediation (Legislative Decree No. 58/98), we have been
informed on a constant basis on matters falling under our
jurisdiction.
■The checks and audits of the Company conducted by us on
aperiodic basis revealed no atypical or unusual transactions.
■With regard to intercompany transactions, the Board of
Directors mentions in the Notes to the Financial Statements
Reports of the Board of Statutory Auditors 325
Dear Stockholders:
The consolidated financial statements of Fiat S.p.A. at
December 31, 2006, including the Balance Sheet, Income
Statement and respective Notes, which are being submitted for
your consideration, show a net income for the Group of 1,065
million euros attributable to equity holders of the parent. They
were provided to us within the statutory terms, together with
the Report on Operations, and were prepared in accordance
with the International Financial Reporting Standards (IFRS).
The controls carried out by Deloitte & Touche S.p.A., which
is responsible for the audit, have shown that the amounts
included in the financial statements are consistent with the
accounting records of the Parent Company and its Subsidiaries
and with the official information provided by said subsidiaries.
These results and information were communicated by the
Subsidiaries to the Parent Company for use in the preparation
of the consolidated financial statements. They were examined
by the external auditors during their audit of the consolidated
financial statements. As far as accounting records are
concerned, they were reviewed by the bodies and/or
individuals responsible for monitoring each individual
company as required under the pertinent legal systems.
Consequently, as allowed under Article 41, Section 3 of
Legislative Decree No. 127 of April 9, 1991, the Board of
Statutory Auditors did not review these results and
information and the consolidated financial statements,
except for the items discussed below.
The determination of the scope of consolidation, the
selection of the standards used to consolidate subsidiaries
and the procedures used for that purpose comply with the
requirements of IFRS. Therefore, the structure of the
consolidated financial statements is technically correct and
overall consistent with the pertinent legislation. The Report
on Operations presents fairly the results, balance sheet and
financial position, as well as the operations in 2006 and the
events that have occurred since the end of the fiscal year,
for the complex of companies subject of the consolidation
process. Based on our examination, this report is consistent
with the consolidated financial statements.
Turin, March 9, 2007
The Statutory Auditors
Carlo Pasteris
Giuseppe Camosci
Cesare Ferrero
Reports of the Board of Statutory Auditors324
Report of the Board of Statutory
Auditors on the Consolidated Financial
Statements to Stockholders
Report of the Board of Statutory
Auditors to Stockholders