Samsung 2001 Annual Report Download - page 56

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54
We have audited the accompanying balance sheets of Samsung Electronics Co., Ltd. as of December 31, 2001 and 2000,
and the related statements of income, appropriations of retained earnings and cash flows for the years then ended,
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 state-
ments 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 statement 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
the Company as of December 31, 2001 and 2000, and the results of its operations, the changes in its retained earnings
and its cash flows for the years then ended in conformity with accounting principles generally accepted in the Republic
of Korea.
The operations of the Company have been affected, and may continue to be affected for the foreseeable future, by the
general unstable economic conditions in the Republic of Korea and in the Asia Pacific region. The ultimate effect of
these uncertainties on the financial position of the Company as of the balance sheet date cannot presently be deter-
mined.
In June 1999, Samsung Motors Inc. (“SMI”), an affiliate of the Company, filed a petition for court receivership. In connec-
tion with this petition, the Company and 30 other Samsung Group affiliates (the “Affiliates”) entered into an agreement
with the institutional creditors (the “Creditors”) of SMI in September 1999. In accordance with this agreement, the
Company and the Affiliates agreed to sell 3,500,000 shares of Samsung Life Insurance Co., Ltd., transferred to the
Creditors in connection with the petition for court receivership of SMI by December 31, 2000. In the event that the sale
proceeds fall short of ￦2,450,000 million, the Company and the Affiliates have agreed to compensate the Creditors for the
shortfall by other means, including participation in any equity offering or subordinated debentures issued by the
Creditors. Any excess proceeds over ￦2,450,000 million are to be distributed to the Company and the Affiliates. As of
December 31, 2001, the shares in Samsung Life Insurance Co., Ltd. had not been sold. The ultimate effect of these mat-
ters on the financial position of the Company as of the balance sheet date cannot presently be determined.
The Company had sales of ￦1,402,703 million and US$12,910,292,000 to subsidiaries and affiliated companies within the
Samsung Group during the year ended December 31, 2001. Related accounts receivable as of December 31, 2001
amounted to ￦370,680 million and US$65,050,000.
The amounts expressed in U.S. dollars, provided solely for the convenience of the reader, have been translated at the
rate of US$1 = 1,326 won, the closing exchange rate on December 31, 2001.
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.
To the Shareholders and Board of Directors, Samsung Electronics Co., Ltd.
Report of Independent Accountants
Seoul, Korea
February 5, 2002