Samsung 2005 Annual Report Download - page 68

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66
Report of Independent Auditors
We have audited the accompanying consolidated balance
sheets of Samsung Electronics Co., Ltd. and its subsidiaries
(collectively referred to as the “Company”) as of December
31, 2005 and 2004, and the related consolidated statements
of income, changes in shareholders’ equity 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 did not
audit the financial statements of Samsung Card Co., Ltd.
and certain other subsidiaries, whose statements reflect total
assets representing 20% and 26% of the consolidated total
assets as of December 31, 2005 and 2004, respectively, and
total revenues representing 16% and 20% of the consolidated
total revenues for the years then ended. Those statements
were audited by other auditors whose reports thereon have
been furnished us, and our opinion expressed herein, insofar
as it relates to the amounts included for those companies, is
based solely on the reports of the other auditors.
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 and the reports of the other
auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the reports of the
other auditors, the consolidated financial statements referred
to above present fairly, in all material respects, the financial
position of Samsung Electronics Co., Ltd. and its subsidiaries
as of December 31, 2005 and 2004, and the results of their
operations, the changes in their shareholders’ equity and
their 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 19 to the accompanying consolidated
financial statements, Samsung Electronics Co., Ltd. (“SEC”)
and 30 other Samsung Group affiliates (the “Affiliates”)
entered into an agreement with the institutional creditors (the
“Creditors”) of Samsung Motors Inc. (“SMI”) in September
1999. In accordance with this agreement, SEC and the
To the Board of Directors and Shareholders of Samsung Electronics Co., Ltd. and Subsidiaries
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Samil PricewaterhouseCoopers
Kukje Center Building
191 Hangangno 2-ga, Yongsan-gu
Seoul 140-702, KOREA
[Yongsan P.O. Box 266, 140-600]