Kia 2000 Annual Report Download - page 14

To the Shareholders and Board of Directors of
KIA MOTORS CORPORATION:
We have audited the accompanying balance sheets of Kia Motors Corporation as of December 31, 2000
and 1999, and the related statements of income, dispositions of accumulated deficit and cash flows for
the years then ended, all expressed in Korean won. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of
Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statements presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Kia Motors Corporation as of December 31, 2000 and 1999, and the results of its
operations, changes in its accumulated deficit and its cash flows for the years then ended in conformity
with financial accounting standards in the Republic of Korea .
The translated amounts in the accompanying financial statements have been translated into U.S. dollars,
solely for the convenience of the reader.
The operations of the Company have been significantly affected, and may continue to be affected for the
foreseeable future, by the general adverse economic conditions in the Republic of Korea and in the Asia
Pacific region. The ultimate effect of these significant uncertainties on the financial position of the
Anjin & Co
A Member Firm of
Andersen Worldwide SC
23-5 Yoido-dong, Youngdeungpo-ku
Seoul 150-010 Korea
Company as of the balance sheet dates cannot presently be determined and, accordingly, no
adjustments have been made in the accompanying financial statements related to such uncertainties.
The court receivership of the Company, whichcommenced on April 15, 1998,was terminated effective
February 16, 2000.
During their meeting on November 4, 2000, the shareholders of the Company approved the retirement
by December 31, 2001 of 80 million shares, or 17.8 percent of total common stock issued as of
December 31, 2000. On January 31, 2001, in accordance with the consensus reached during the said
shareholdersmeeting and the provisions of the Korean Commercial Code, the Company concluded the
first round of stock retirement covering 43,287,110 treasury shares, or 9.6 percent of total common
stockissued, which shares had been reacquired for retirement purposes since the date of the
shareholdersmeeting. As a result of the stock retirement, the number of the Companys total common
shares issued has been reduced to 406,310,345 shares as of February 10, 2001.
Effective December 1, 2000, the Company sold its Parts Sales Division, the main function of which had
been the selling and distribution of motor parts for after-sales services, to Hyundai Mobis Co., Ltd. The
book value of the Divisions net assets as of December 1, 2000 was 264,805 million ($210,213
thousand). The total consideration for the sale of the Division consists of a fixed amount of 310,105
million ($246,174 thousand) as compensation for the Divisions net assets and goodwill of 45,300
million ($35,961 thousand), plus 10 percent of ordinary income from the Divisions operations during a
ten-year period starting in 2001 which is payable every year during the said period.
The accompanying financial statements are not intended to present the financial position, results of
operations and cash flows in accordance with accounting principles and practices generally accepted
in countries and jurisdictions other than the Republic of Korea. The procedures and practices utilized in
the Republic of Korea to audit such financial statements may differ from those generally accepted and
applied in other countries and jurisdictions. Accordingly, this report and the accompanying financial
statements are not intended for use by those who are not informed about Korean accounting principles
or auditing standards and their application in practice.
Seoul, Korea,
February 10, 2001
2000 KIA MO TO RS
AN N UAL REPORT / 25-26
Report of Independent Public Accountants
English Translation of a Report Originally Issued in Korean No57 Jan,2000 - Dec,31,2000