1999 Annual Report - Delta Electronics

17 1999 Annual Report
Financial Statements
February 23, 2000
(00)R.D24P.4066
To the Board of Directors of
Delta Electronics, Inc.
We have examined the consolidated balance sheet of Delta Electronics, Inc. as of
December 31, 1999 and 1998, and the related consolidated statements of income, of
changes in stockholders' equity and of cash flows for the years then ended. These
consolidated 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 examine the 1999 and 1998 consolidated financial statements of
Delta International Holding Ltd., consolidated subsidiary, which statements reflect total
consolidated assets of $21,093,278,000 and $11,867,260,000, constituting 61% and
52%, respectively, and consolidated operating revenues of $32,199,851,000 and
$18,592,829,000, constituting 81% and 71%, respectively, of the related consolidated
totals. The consolidated financial statements were examined by other auditors whose
reports thereon have been furnished to us. In addition, as explained in Note 4(4), the
financial statements of certain investee companies for the years ended December 31,
1999 and 1998, accounted for under the equity method, were examined by other
auditors whose reports thereon have been furnished to us. The total amount of longterm
investments in these investee companies at December 31, 1999 and 1998 was
$309,216,000 and $500,595,000, respectively, and the related investment income for the
years then ended were $163,553,000 and $22,524,000, respectively. Our opinion
expressed herein, insofar as it relates to the amounts included in the financial statements
relative to this consolidated subsidiary and long-term investments, is based solely on the
reports of the other auditors. Information of certain investee companies disclosed in
Note 12 were based on the reports of the other auditors.
We conducted our audits in accordance with the "Rules Governing Examinations of
Financial Statements by Certified Public Accountants" and generally accepted auditing
standards in the Republic of China. Those standards require that we plan and perform
the audits 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our audits and
the reports of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our examinations and the reports of other auditors, the
consolidated financial statements referred to above present fairly the financial position
of Delta Electronics, Inc. and its consolidated subsidiaries, Delta International Holding
Ltd., and Delta Networks, Inc. as of December 31, 1999 and 1998, and the results of
their operations and their cash flows for the years then ended, in conformity with the
''Rules Governing Preparation of the Financial Statements of Securities Issuers" and
generally accepted accounting principles in the Republic of China.
As indicated in Note 2, the accompanying financial statements are not intended to
present the financial position and results of operations and cash flows in accordance
with accounting principles and practices generally accepted in countries and
jurisdictions other than the Republic of China. The standards, procedures and practices
utilized in the Republic of China to audit such consolidated financial statements may
differ from those generally accepted in countries and jurisdictions other than the
Republic of China.
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1999 Annual Report