Chrysler 2012 Annual Report Download - page 296

295
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2012
Net advances for work completed were as follows:
Advances received from
customers Advances paid to suppliers
Net advances for work
completed
(€ thousand)
31 December
2012
31 December
2011
31 December
2012
31 December
2011
31 December
2012
31 December
2011
Florence-Bologna line 5,232,434 5,203,837 5,069,854 5,041,543 162,580 162,294
Novara-Milan line 2,277,543 2,276,845 2,194,697 2,194,009 82,846 82,836
Progress payments for work completed 7,509,977 7,480,682 7,264,551 7,235,552 245,426 245,130
Advances relates to amounts received as down payments from the customer T.A.V. S.p.A. at the commencement of the contracts, which are then
recovered as the work progresses. Amounts were as follows:
Contractual advances received
from customers
Contractual advances paid to
suppliers Net contractual advances
(€ thousand)
31 December
2012
31 December
2011
31 December
2012
31 December
2011
31 December
2012
31 December
2011
Florence-Bologna line 52 71 51 69 12
Novara-Milan line 5,168 5,812 5,037 5,673 131 139
Contractual advances 5,220 5,883 5,088 5,742 132 141
At 31 December 2012, bank guarantees and sureties totaling €494 million were given by Fiat S.p.A. to T.A.V. S.p.A. against contractual advances received,
performance of the work and withholding amounts on progress payments. Under agreements entered into with the consortia mentioned and the institutions
issuing the guarantees, €477 million of the total represents the direct liability of the consortia towards the issuing banks and insurance companies, with no
joint responsibility on the part Fiat S.p.A.
More specifically, €100 million in guarantees provided by Fiat S.p.A. to T.A.V. S.p.A. relate to the Bologna-Florence line, €393 million to the Novara-Milan
sub-line and €1 million to the Turin-Novara sub-line (remaining guarantees issued on the final work subject to testing in 2009).
Indemnities assumed directly by the CAV.E.T. consortium amounted to €97 million, while those for the CAV.TO.MI. consortium totaled €379 million for the
Novara-Milan sub-line and €1 million for the Turin-Novara sub-line.
Release of these guarantees is usually linked to the formal testing (Final Test Certificates) required contractually for acceptance of the work by the customer
and expiry of the subsequent two-year period for the technical and functional warranties issued, unless other specific conditions have been agreed.
Finally, for those lines where work was still in progress at year end (Bologna-Florence and Novara-Milan) the lines were formally handed over to T.A.V. S.p.A.
in 2009 and the high-speed line was opened to the public, following the favorable technical opinion received from the Testing Commissions. However, given
that at 31 December 2012 (as also at 31 December 2011), activities to complete the ancillary work and cleanup, in addition to the contractual obligation for
final approval of the work (Final Principal and/or Secondary Test Certificates) and to release the bank guarantees were still in progress, from an accounting
perspective the project remained open at that date.
Taxes payable and other debt
The principal items were as follows:
At 31 December 2012, debt payable to Group companies and other related parties for consolidated VAT, totaling €211,221 thousand (€158,260 thousand
at 31 December 2011), related to VAT credits of Italian subsidiaries transferred to Fiat S.p.A. as part of the VAT consolidation, in addition to prior year
amounts due to former subsidiaries transferred to Fiat Industrial Group under the Demerger.