2008 annual report - Audit Committee

Portugal Telecom

Description

Consolidated financial statemwntsReport and opinion of the Audit Committee(T r anslationofar epor tor ig inall yissuedinP or tuguese)A uditC ommitteer epor ttotheconsolidatedann ualr epor tf orthey earof20081. IntroductionPursuant to the terms and for the purpose of paragraph g) to Article 423-F of the Portuguese Companies Act and Article 28 of the By-laws, Portugal Telecom, SGPS, SA (“PT SGPS”) Audit Committee hereby presents its report to the Consolidated Annual Report for the year ended on December 31st, 2008.2. Supervisory activitiesWithin its responsibilities and for the purpose of complying with its functions as supervisory body, the Audit Committee has supervised the quality and integrity of the financial information disclosure processes. The Audit Committee held meetings with the responsibles for the preparation of the Consolidated Report and of the major subsidiaries, with the Independent Auditors and with the Statutory Auditor, having analyzed the main questions raised in the accounts’ closing and in the preparation of the management report. In addition, the Audit Committee has reviewed the Accounts Certificate (“Certificação Legal de Contas”) issued by the Statutory Auditor and the Independent Auditors’ Report, both referring to the aforementioned consolidated financial statements approved by the Board of Directors, which do not include any reserves.The Audit Committee has overseen the management and the evolution of the ...

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• Publié par: Urne
• Nombre de lectures: 31
• Langue: English

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ReportandopinionoftheAuditCommittee (TranslationofareportoriginallyissuedinPortuguese)

AuditCommitteereporttotheconsolidatedannualreportfortheyearof2008

1.Introduction

Pursuanttothetermsandforthepurposeofparagraphg)toArticle423-FofthePortugueseCompaniesActandArticle28oftheBy-laws,   PortugalTelecom,SGPS,SA(“PTSGPS”)AuditCommitteeherebypresentsitsreporttotheConsolidatedAnnualReportfortheyearendedon December31st,2008.

2.Supervisoryactivities

Withinitsresponsibilitiesandforthepurposeofcomplyingwithitsfunctionsassupervisorybody,theAuditCommitteehassupervisedthe qualityandintegrityofthefinancialinformationdisclosureprocesses.  

TheAuditCommitteeheldmeetingswiththeresponsiblesforthepreparationoftheConsolidatedReportandofthemajorsubsidiaries,   withtheIndependentAuditorsandwiththeStatutoryAuditor,havinganalyzedthemainquestionsraisedintheaccounts’closingandin   thepreparationofthemanagementreport.Inaddition,theAuditCommitteehasreviewedtheAccountsCertificate(“CertificaçãoLegalde   Contas”)issuedbytheStatutoryAuditorandtheIndependentAuditors’Report,bothreferringtotheaforementionedconsolidatedfinancial statementsapprovedbytheBoardofDirectors,whichdonotincludeanyreserves.

TheAuditCommitteehasoverseenthemanagementandtheevolutionoftheCompany’sbusinessesanditscompliancewiththeapplicable legal,regulatoryandaccountingrules.  

Inparticular,theAuditCommitteehasmonitoredtheexecutionandanalyzedtheimpactonthefinancialconditionofthefollowingmeasures,   implementedasaresultoftheshareholdersremunerationpolicyapprovedattheCompany’sGeneralShareholdersMeeting,heldonMarch   28th,2008:

>h,2008;lirpt42diaAnia07pndtng20oaliteerhsraeprros5Eu0.57ofhsacnisdnedividofnioutibtrisdA >tehCmonaegsotThech691,54Eruso,h,4t002of8,42damtaeraM2hclrepitaionsducthtealreachsrain,alitcutiarpss’ynappacerah throughthecancellationof83,204,823treasuryshares,andatDecember10th,2008of1,382,480Euros,throughthecancellationof   46,082,677treasurysharesextoftthecontinbueacybetharshnoitfoeehucexneraeGetthedarpvompagoarkrp,ngtieeMsredloherahSl whichwasfullycompleted.

TheAuditCommitteehasanalyzedandgivenafavorableopiniontotheproposaloftheBoardofDirectors,ofNovember12th,2008,relating   tofuturesharecapitalincrease(s)ofPTSGPStobeexecutedbytheBoarsofDirectors,pursuanttotheapplicablelawsandforthepurposes   andtotheextentrequiredtosatisfyconversionrequestsmadefurthertotheissuebyPTSGPSof15.000convertiblebonds(convertibleinto   PTSGPSshares),inthetotalamountof750millionsEuros,tobefullysubscribedforbyPortugalTelecomInternationalFinance,B.V.,under   thetermsapprovedintheGeneralShareholdersMeetingsheldonApril27th,andJune22nd,2007.TheAuditCommitteesupervisedand   issuedafavorableopiniononthedecisionoftheBoardofDirectorsofitssubsidiaryPTComunicações,SAchangingtheaccountingprincipleof accountingforrealestateandductsnetworkfromhistoricalcosttomarketvalue,forrealestateandconstructioncostforducts.Asaresultof   thischangeShareholdersequityincreasedby790,686,788Euros.

TheAuditCommitteehasalsosupervisedthequalifications,independenceandworkoftheCompany’sIndependentAuditorsandStatutory Auditoraswellasofthequality,integrityandeffectivenessofPTSGPS’sinternalcontrolandriskmanagementsystemandinternalaudit   function.

Asfarastheinternalcontrolsystemisconcerned,wehighlightthatitwascertifiedbytheCompany’sIndependentAuditorsin2008,by   referencetotheyearof2007,inaccordancewiththerequirementsforeseeninSection404oftheSarbanes-OxleyActandonthebasisofthe methodologydefinedbyCOSO(CommitteeofSponsoringOrganizations).

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TheaforementionedsupervisoryactivitieswillbefurtherdetailedintheAuditCommittee’sActivitiesReportrelatingtotheyearof2008 disclosedintheCompany’swebsite.

3.Opinionontheconsolidatedreportfortheyear2008

Inouropinion,theconsolidatedreportfortheyearendedatDecember31st,2008,includingthebalancesheet,theincomestatements,the   statementsofrecognizedincomeandexpenses,thecashflowsstatementsanditsattachednotes,relatedtotheyearthenended,comply   withtheapplicableaccountingandlegalprovisionsandtheBy-laws,thustheAuditCommitteerecommendsitsapprovalbyPTSGPS’sGeneral ShareholdersMeeting.

4.StatementofResponsibility

Forthepurposesofsubparagraph1,c)ofarticle245ofthePortugueseSecuritiesCode,themembersoftheAuditCommitteeofPortugal Telecom,SGPS,SAidentifiedhereunderdeclare,inthecapacityandwithintheirfunctionsasdescribedtherein,that,tothebestoftheir   knowledgeandgroundedontheinformationtowhichtheyhadaccesswithinsuchAuditCommittee,whileinoffice:

> mnagameTehrt,theentrepotslmetaanifaicnaceuncotsenth,requiredertitscteaficaehodntfnihtresalcianntmetetaoddnasstnemuc bylaworregulationconcerningthefinancialyearendedon31December2008werepreparedinaccordancewiththeapplicablesetof   accountingstandardsandgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofPortugalTelecom,SGPS,   SAandtheundertakingsincludedintheconsolidationtakenasawhole; > ncmaeeepfrroenss,htthebusimentofntmeeprtornccohTameeganhetofwopelevdafasedeiverrilyenciancluarignsreinifancuh andpositionofPortugalTelecom,SGPS,SAandtheundertakingsincludedintheconsolidationtakenasawhole,includinganaccurate   descriptionoftheprincipalrisksanduncertaintiesthattheyface.

Lisbon,18February,2009

THECHAIRMAN JoãoManueldeMelloFranco

THEMEMBERS ThomazPaesdeVasconcellos

JoséGuilhermeXavierdeBasto

PortugalTelecom|lta0r2npAeurno80

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