Samsung 2003 Annual Report Download - page 50

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50
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, 2003 and
2002, 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 over-
all financial statement presentation. We believe that our audits provide a rea-
sonable 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, 2003 and 2002, 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.
Without qualifying our opinion, we draw your attention to the following matters.
As discussed in Note 16 to the accompanying non-consolidated financial
statements, in June 1999, Samsung Motors Inc. (“SMI”), an affiliate of the
Company, filed a petition for court receivership. In connection with this peti-
tion, 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., which were previously transferred to the Creditors in connection with the
petition for court receivership of SMI by December 31, 2000. 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
debentures issued by the Creditors. Any excess proceeds over ￦2,450,000
Independent Auditor’s Report