Porsche 2003 Annual Report Download - page 11

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7
Throughout the fiscal year, the Supervisory Board was provided
with written and oral reports from the Executive Board regarding
the status of the Company, the business operations and busi-
ness policy, on the basis of which it monitored the Company’s
management. The Supervisory Board’s responsibilities included
ensuring that the requirements of the KonTraG (“Gesetz zur Kon-
trolle und Transparenz im Unternehmensbereich”: “Corporate
Sector Supervision and Transparency Act”) are implemented
and observed. The Supervisory and Executive Board have scru-
tinized the recommendations and suggestions of the German
Corporate Governance Code, which gained its legal basis
through the TransPuG (“Transparenz- und Publizitätsgesetz”:
“Transparency and Disclosure Law”), and issued a declaration
of compliance pursuant to Section 161 of the Stock Corpora-
tion Law (AktG). Comments on the declaration of conformity
are included in the annual report 2003/04. Further, the Super-
visory Board dealt with fundamental issues of the business plan-
ning, especially the financial, capital expenditure and personnel
planning. The Supervisory Board has formed a standing com-
mittee, which acts both as an arbitration committee in accor-
dance with Section 27 subsection 3 of the Mitbestimmungsge-
setz (“Co-Determination Act”) and as a personnel committee.
Business transactions for which the Supervisory Board’s con-
sent is required were thoroughly debated at the four meetings
of the Supervisory Board and the four meetings of the Standing
Committee prior to adopting a resolution. These meetings pro-
vided an occasion for the Supervisory Board to satisfy itself of
the fact that the Executive Board manages the business effi-
ciently and implements all appropriate measures effectively and
in a timely fashion. The Executive Board continuously supplied
the Supervisory Board with comprehensive, up-to-date informa-
tion on the development of the markets and the business lines.
The monthly reports, which present and explain important actual
quantity and financial data in comparison with budget and prior
year figures, play an important role here.
The annual financial statements of the Dr. Ing. h.c. F. Porsche
Aktiengesellschaft and the consolidated financial statements
prepared by the Executive Board for the 2003/04 fiscal year as
well as the accounting records and the combined Company and
Group management report were audited by Ernst & Young AG,
Wirtschaftsprüfungsgesellschaft, Stuttgart which was appointed
as auditor at the Annual Shareholders’ Meeting on January 23,
2004. Also subject to this audit were the measures taken by the
Executive Board to identify at an early stage any risks that might
threaten the enterprise’s performance and its continuing existence.
The auditors raised no objections and thus issued an unqualified
auditors’ reports.
The annual financial statements of the Porsche AG, the consoli-
dated financial statements and the Company and Group manage-
ment report for which an unqualified auditors’ report was issued
by Ernst & Young AG, Wirtschaftsprüfungsgesellschaft, Stuttgart
along with the consolidated auditors’ reports were submitted to
the Supervisory Board for examination.
The Supervisory Board examined and approved the documents
and the auditors’ report for the Porsche AG and Porsche Group
pursuant to Section 170 subsection 1 and 2 of the Stock Corpora-
tion Law (AktG) and concluded after the final result of their ex-
amination and approval that no objections have to be made. The
Supervisory Board agrees with the audit results of Ernst & Young
AG, Wirtschaftsprüfungsgesellschaft, Stuttgart. The auditors,
having signed the annual financial statements, attended the meet-
ing of Supervisory Board at which the annual financial statements
and the consolidated financial statements were approved and re-
ported on their audit of the financial statements and consolidated
financial statements.
The Supervisory Board ratified the annual financial statements for
the 2003/04 fiscal year. The Supervisory Board approved the
management report prepared by the Executive Board. We agree
with the executive Board’s proposal for the allocation of net in-
come available for distribution. The Supervisory Board acknow-
ledges and expresses its thanks to the Executive Board, the
elected staff representatives and all employees for their high
degree of commitment and the work they carried out in the past
fiscal year.
Stuttgart, November 2004
The Supervisory Board
Prof. Helmut Sihler
Chairman
Report of the
Supervisory Board