Chrysler 2013 Annual Report Download - page 320

319
Fiat S.p.A. Statutory
Financial Statements
at 31 December 2013
In 2009, the Secondary Final Test Certificate relating to the completion of residual work on the Turin-Novara line was signed, representing
the final contractual document for the work on the line, and the project was closed from an accounting perspective (the Principal Final Test
Certificate had already been signed in 2006, year in which the line was opened to the public).
Net advances for work completed were as follows:
Advances received
from customers
Advances paid
to suppliers
Net advances for work
completed
(€ thousand)
31 December
2013
31 December
2012
31 December
2013
31 December
2012
31 December
2013
31 December
2012
Florence-Bologna line 5,236,310 5,232,434 5,073,681 5,069,854 162,629 162,580
Novara-Milan line 2,456,036 2,277,543 2,371,305 2,194,697 84,731 82,846
Progress payments for work completed 7,692,346 7,509,977 7,444,986 7,264,551 247,360 245,426
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
2013
31 December
2012
31 December
2013
31 December
2012
31 December
2013
31 December
2012
Florence-Bologna line -52 -51 -1
Novara-Milan line 5,168 5,168 5,037 5,037 131 131
Contractual advances 5,168 5,220 5,037 5,088 131 132
At 31 December 2013, bank guarantees and sureties totaling €414 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, €399 million of the total represents the direct liability of the consortia towards
the issuing banks and insurance companies, with no joint responsibility for Fiat S.p.A.
Specifically, €52 million in guarantees provided by Fiat S.p.A. to T.A.V. S.p.A. relate to the Bologna-Florence line, €361 million to the
Novara-Milan sub-line and €1 million to the Turin-Novara sub-line (remaining guarantee for work to be carried out during the Final Test phase).
Indemnities assumed directly by the CAV.E.T. consortium totaled €50 million. For the CAV.TO.MI. consortium, indemnities totaled €348 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.