




SAMART TELCOMS PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2002 AND 2001


Report of the Independent Auditor
To The Board of Directors and Shareholders of
Samart Telcoms Public Company Limited
I have audited the accompanying consolidated balance sheets of Samart Telcoms Public Company Limited and its 
subsidiaries as at 31 December 2002 and 2001, and the related consolidated statements of earnings, changes in 
shareholders equity, and cash flows for the years then ended, and the separate financial statements of Samart 
Telcoms Public Company Limited for the same periods.  These financial statements are the responsibility of the 
Companys management as to their correctness and completeness of the presentation.  My responsibility is to 
express an opinion on these financial statements based on my audits.  
I conducted my audits in accordance with generally accepted auditing standards.  Those standards require that I 
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 statements presentation.  I 
believe that my audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial 
position of Samart Telcoms Public Company Limited and its subsidiaries and of Samart Telcoms Public Company 
Limited as at 31 December 2002 and 2001, and the results of their operations and cash flows for the years then 
ended, in accordance with generally accepted accounting principles.
Without qualifying my opinion on the above financial statements, I draw attention to the following matters :-
a)	As discussed in Note 1 to the financial statements, as at 31 December 2002 and 2001, the Company and its 
subsidiaries have current liabilities of Baht 313 million and Baht 453 million in excess of current assets.  
The Companys and its subsidiaries ability to continue their business operations as going concerns is hence 
dependent upon their being able to find sources of funds, and on their future operating results.  Nevertheless, 
the accompanying financial statements have been prepared on the going concern basis, presuming that the 
realisation of assets and settlement of liabilities and obligations will occur in the ordinary course of the 
businesses of the Company and its subsidiaries, without any expectation of significant disruption to the 
ongoing activities.


b)	As discussed in Note 11 to the financial statements, in 2002 and 2001 the Company assessed the impairment 
of deferred right to the use of communications equipment by considering the present value of projected 
future cash inflows on the basis of certain assumptions and operations plans prepared by the Companys 
management.  Based on such information, as at 31 December 2002 and 2001 the present values of the 
projected future cash inflows were approximately Baht 190 million and 251 million, respectively lower than 
net book values.  The Company set aside provisions of Baht 190 million and 251 million for impairment of 
such assets in the 2002 and 2001 statements of earnings, respectively, and the management believes that 
these provisions are adequate.  However, the changes in market competition as a result of the economic and 
financial crisis in Thailand, and the changes of technology in the future could lead to further decrease in the 
projected future cash inflows. 
c)	As discussed in Note 6 and 5 to the financial statements, the Company and its subsidiaries have 
significant business transactions, relating to sales, services and loans, with the parent company and 
related companies.  Such transactions have been conducted on the terms and basis as determined by 
the Company and those companies.  As at 31 December 2002, the Company and its subsidiaries have 
an outstanding balance of trade accounts receivable and amounts due from and advance to a related 
company of approximately Baht 31.0 million and Baht 17.6 million, respectively (the Company only : 
Baht 22.1 million and Baht 15.8 million, respectively), of which outstanding balance between its 
subsidiary and the related company of Baht 8.0 million, has been outstanding over 12 months.  The 
Company and its subsidiaries have not provided an allowance for doubtful accounts for this debt since 
the management believes that the amount will be fully recoverable.



		Ruth Chaowanagawi
		Certified Public Accountant (Thailand) No. 3247
Ernst & Young Office Limited
Bangkok  :  7 February 2003
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