Chrysler 2007 Annual Report Download - page 328

Reports of the Board of Statutory Auditors 327
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 submit 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 our duties pursuant
to Article 149 of Legislative Decree no. 58 of February 24, 1998,
and are able to report specific information on the subjects
listed below.
We attended the meetings of the Board of Directors, where we
received detailed information on the Company’s business 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 and were consistent with management best practices.
The Company’s organization appears to be adequate, based
on the size of the Company. As part of our work, we met
with the heads of the various Company Departments and with
representatives of the External Auditors, from whom
we obtained comprehensive information indicating that the
Company was in compliance with management best practices.
The internal control system, which is constantly upgraded,
has been implemented at Group level and is operational both
at the Parent Company and its subsidiaries.
We express a favorable opinion on the adequacy of the
Company’s internal control system, intended as a system
aimed to assess the compliance with the internal operating
and administrative procedures adopted to ensure that the
Company is correctly and efficiently managed, while at the same
time identifying, preventing and minimizing financial
and operating risks as well as the risk of frauds. The Board
of Statutory Auditors attended all Internal Control Committee
meetings.
Based on our determinations and on what we ascertained also
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 2007 within the statutory
deadline and published it in accordance with the Consob
requirements. 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 required by the Consolidated Financial Act (Legislative
Decree no. 58/98), we have been informed on a constant basis
on matters falling under our jurisdiction.
■No atypical or unusual transactions were revealed by
the checks and audits we have periodically performed.
■With regard to intercompany transactions, the Board
of Directors mentions in the Notes to the Financial Statements
that numerous transactions involving the sale of goods and the
provision of services took place between the Company, other
Group companies and/or related parties. The Report on
Operations further states that these transactions were executed
on commercial terms deemed normal in the respective markets,
considering the characteristics of the goods or services involved.
■The External Auditors’ report is clean of both qualifications
and emphasis paragraphs.
Report of the Board of Statutory
Auditors to Stockholders