Relations with the Parent Company and its subsidiaries. The Benetton Group had limited trading dealings with other
subsidiaries of Edizione Holding S.p.A. [the Parent Company] and with other parties which, directly or indirectly, are linked by
common interests with the majority Shareholder. Trading relations with such parties are conducted on an arm’s-length basis and
using the utmost transparency.
Other costs mainly refer to services.
The relevant totals appear below:
[thousands of euro] 2002 2001
Accounts receivable 1,614 5,248
Accounts payable 867 199
Purchases of raw materials 3,725 3,599
Other costs and services 13,031 14,261
Sales of products 76 1,713
Revenue from services and other income 773 19,851
The Group has undertaken some transactions, mainly relating to manufacturing activities, with companies directly or indirectly
controlled by, or in any case under the influence of, managers serving within the Group. The Company’s management believes
that such transactions were completed at going market rates. The total value of such transactions was not, in any case, significant
in relation to the Group’s total production value. No Director, Manager, or Shareholder is a debtor of the Group.
Corporate Governance. Once again in fiscal year 2002 the Benetton Group dedicated special attention to Corporate
Governance rules. It adopted the main innovations introduced during the year by the Code of Conduct for Listed Companies
[Codice di Autodisciplina delle Società Quotate] and adapted the managerial and decision-making aspects of its organization
systems accordingly.
The Corporate Governance system, as described below, follows sound management and information principles, implemented
through periodic review o ...