Samsung 2002 Annual Report Download - page 49

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To the Board of Directors and Shareholders of Samsung Electronics Co., Ltd.
We have audited the accompanying non-consolidated balance sheets of Samsung Electronics Co., Ltd. (the “Company”) as of December 31, 2002
and 2001, and the related non-consolidated 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 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 statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the non-consolidated financial statements, referred to above, present fairly, in all material respects, the financial position of Samsung
Electronics Co., Ltd. as of December 31, 2002 and 2001, and the results of its operations,the changes in its retained earnings and its cash flows
for the years then ended, in conformity with financial accounting standards generally accepted in the Republic of Korea.
As discussed in Note 15 to the accompanying financial statements, in June 1999, Samsung Motors Inc. (“SMI”), an affiliate of the Company, filed a
petition for court receivership. In connection 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, 2001. In the event that the sales 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 the participation in any equity offering or subordinated deben-
tures issued by the Creditors. Any excess proceeds over ￦2,450,000 million are to be distributed to the Company and the Affiliates. As of
Independent Auditor’s Report