Samsung 2007 Annual Report Download - page 67

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65


Samil PricewaterhouseCoopers
As of December 31, 2007, the sale of the Shares had not been
completed and on December 9, 2005, the Creditors filed a civil
action against Mr. Kun-Hee Lee, the Chairman of SEC, SEC and
27 of the remaining Affiliates, in connection with this agreement
claiming the agreed sales proceeds in the amount of ￦2,450
billion plus interest of 6% per annum and penalties.
On January 31, 2008, the court ruled that the original agreement
was valid, and that Mr. Kun-Hee Lee, SEC and 27 of the
remaining Affiliates have a joint and severable liability for the
principal less an amount related to Samsung Life shares that
have already been disposed of by the Creditors, plus interest at
a rate of 6% per annum.
As of the balance sheet date, the financial impact of this civil
action is uncertain and accordingly, the ultimate effect of this
matter on the financial position of the Company cannot presently
be determined.
The amounts expressed in U.S. dollars, provided solely for the
convenience of the reader, have been translated on the basis
set forth in Note 3 to the accompanying consolidated financial
statements.
Accounting principles and auditing standards and their
application in practice vary among countries. The accompanying
consolidated financial statements are not intended to present the
financial position, results of operations, changes in their
shareholders’ equity and cash flows in conformity with
accounting principles and practices generally accepted in
countries and jurisdictions other than the Republic of Korea. In
addition, the procedures and practices used in the Republic of
Korea to audit such financial statements may differ from those
generally accepted and applied in other countries. Accordingly,
this report and the accompanying consolidated financial
statements are for use by those who are informed about Korean
accounting principles or auditing standards and their application
in practice.
Seoul, Korea
March 11, 2008
This report is effective as of March 11, 2008, the audit report date. Certain subsequent events or circumstances, which may occur between the audit
report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto.
Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the
impact of such subsequent events or circumstances, if any.