Chrysler 2008 Annual Report Download - page 340

Reports of the Board of Statutory Auditors 339
Dear Shareholders:
Article 153 of Legislative Decree No. 58 of 24 February 1998
requires the Board of Statutory Auditors to report the results of
its oversight activity to the Shareholders 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 (2) of the Italian Civil
Code.
During the past year, we performed our duties pursuant to Article
149 of Legislative Decree No. 58 of 24 February 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 Shareholders 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 Independent 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 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 (2) of Legislative Decree No. 58/98 also
appear to be adequate.
Additionally, it is our view that the internal procedure adopted by
the Company in implementation of the amended Article 36 of the
same Decree is correct.
The Board of Directors provided us with the Report on
Operations for the first half of 2008 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 Legislative Decree No. 58/98, we have been
informed on a constant basis on matters falling under our
jurisdiction;
No atypical or unusual transactions, as defined in Consob
Communication of 28 July 2006, 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 and other
Group companies, as well as 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 Independent Auditors’ report is clean of both
qualifications and emphasis paragraphs;
Report of the Board of Statutory
Auditors to Shareholders