The Benetton Group Annual Report 1996

REPORT OF THE BOARD OF STATUTORY AUDITORS
ON THE CONSOLIDATED FINANCIAL STATEMENTS
To the Stockholders of Benetton Group S.p.A., the Parent Company,
As part of our duties pursuant to Article 41 of Decree 127/91, we have examined the consolidated
financial statements of the Benetton Group as of December 31, 1996, which report net income of
Lire 245,642 million, total assets of Lire 3,864,262 million, total liabilities of Lire 2,018,823 million,
stockholders’ equity of Lire 1,845,439 million, and memorandum accounts totaling Lire 5,948,485 million,
together with the Report on Operations.
Based on the information and documentation received from the Directors and Management, we
confirm the following:
a) Examination of the consolidated financial statements
1. Our examination was performed in accordance with the law that regulates consolidated financial
statements, with the standards of conduct recommended by the Italian accounting profession and
with generally-accepted accounting principles. The financial statements were audited by Deloitte &
Touche S.p.A., who have not communicated to us any censurable matters concerning the Parent
Company or any of its subsidiaries.
2. The financial statements of the subsidiary and associated companies included within the scope of
consolidation were examined, as required by the law, by their respective Boards of Statutory Auditors
and Independent Auditors. We have not been informed by the independent auditors or any other
party of irregularities of any kind in relation to such financial statements.
3. In our opinion, the abovementioned consolidated financial statements reflect the accounting
records of the Parent Company and the information received from subsidiary companies, and have
been prepared in conformity with the principles of consolidation and the criteria for establishing the
scope of consolidation laid down in Decree 127/91. The instructions contained in Articles 32 and 38
of the Decree mentioned have also been respected. Accordingly, taken as a whole, the
consolidated financial statements fairly present the financial position of the Benetton Group as of
December 31, 1996, and its results for the year then ended.
b) Examination of the Report on Operations
1. We have examined the report of the Directors on the results of operations that accompanies the
consolidated financial statements, in order to verify compliance with Article 40 of Decree 127/91 and
determine its consistency with such statements pursuant to Article 41 of the same Decree.
2. On the basis of the work we performed, the Board of Statutory Auditors believes that the Report on
Group Operations is properly presented and is consistent with the consolidated financial statements.
Ponzano Veneto, April 7, 1997
THE BOARD OF STATUTORY AUDITORS
Dino Sesani
Fanio Fanti
Filippo Duodo