1. Name of the Company: Apple Inc

Website: www.apple.com Headquarter: Infinite Loop Cupertino, California Nature of Business: Apple Inc. is an American multinational corporation that designs and

manufactures consumer electronics, computer software, and personal computers. The company's best-known hardware products include Macintosh computers, the iPod, the iPhone and the iPad.

Products:

i Phone i Pad Mac i Pod i Tunes & i Tunes Store Mac App Store i Cloud Apple Pay Accessories: Apple TV, Apple Watch Operating Systems: Ios & OS X

Company Background

Apple Computer, Inc. designs, manufactures, and markets personal computers, software,networking solutions, and peripherals, including a line of portable digital music players. Apple's product family includes the Macintosh line of desktop and notebook computers, the iPod digital music player, the Mac OS X operating system, the iTunes Music Store, the Xserve G5 server, and Xserve RAID storage products. The company's products are sold online, through third-party wholesalers, and through its own chain of stores. Apple owns approximately 125 retail stores in the United States, as well as stores in Canada, Japan, and the United Kingdom.

Apple was founded in April 1976 by Steve Wozniak, then 26 years old, and Steve Jobs, 21, both college dropouts.

Business Strategy

The Company is committed to bringing the best user experience to its customers through its innovative hardware, software and services. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software and services to provide its customers products and solutions with innovative design, superior ease-of-use and seamless integration.

2. Name of the Company: Samsung

Website: www.samsung.com Headquarters: SEOUL,SOUTH KOREA Nature of Business: Samsung Electronics is the world’s largest consumer electronics company. Producing everything

from phones, TVs, cameras and laptops to microwaves and freezers, it is a top three brand in pretty much every category in which it is active. 2010 sales were in excess of $135 billion with net profits of over $14 billion. Samsung Electronics is now twice the size of Sony, the company which 20 years ago was the undisputed leader in the sector.

Products: There is a range of products & services offered by Samsung namely:-

Cell Phones TV’s Tablets Wearable Tech Blu-Ray & Smart Players Home Audio Digital Cameras & Camcorders Computers Memory & Storage Home Appliances LED Lighting Accessories LED Lighting Advertising Construction Entertainment Financial Services Hospitality Medical & healthcare Services

Historical Background:-

From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today Samsung's innovative and top quality products and processes are world recognized. This timeline captures the major milestones in Samsung's history, showing how the company expanded its product lines and reach, grew its revenue and market share, and has followed its mission of making life better for consumers around the world.

1938-1969 Samsung's Beginnings

On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won.

At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung-which means "three stars" in Korean-would have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today.

1970 Black-and-white TV (model: P-3202) production started by Samsung-Sanyo

1969 Samsung-Sanyo Electronics established (renamed Samsung Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977)

1966 Joong-Ang Development established (known today as Samsung Everland)

1963 DongBang Life Insurance acquired (renamed Samsung Life Insurance in July 1989)

1958 Ankuk Fire & Marine Insurance acquired (renamed Samsung Fire & Marine Insurance in October 1993)

1954 Cheil Industries Inc. founded

1951 Samsung Moolsan established (now Samsung Corporation)

1938 Samsung founded in Taegu, Korea

Point 2: Geographical Areas

Apple:

Americas- North & South Europe- European Countries, India, Middle East & Africa Greater China – China, Hong Kong & Taiwan Japan Rest of Asia Pacific- Australia and Asian Countries.

Samsung:

America Europe Middle East & Africa China Asia

Point 3: Contents of Information in Annual report:-

Apple:

Business Risk Factores Selected Financial Data Mnagement Discussions and Analysis of Financial Conditions Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data

Samsung

Business Overview-The Business is broadly segmented into three Categories-

Consumer Electronics IT & Mobile Communications Device Solutions

Global CitizenshipSamsung Electronics believes that our continuous and effective social responsibility programs build a better world. We look for ways to instill joy by helping to resolve community challenges, protect the environment and share growth with our employees and partners. With the combined efforts of our sincere hearts and spirits, we expect to create a healthier and friendlier world.Below are the Key areas in which Samsung is active & same has been stressed upon in The Annual Report.

Social Contributions -Sharing & volunteering to support New Hope. Around the globe, Samsung Electronics hosts five social responsibility programs to address education, job training and healthcare issues that reflect the needs, business affiliations and characteristics of the local community. We work to improve education in disadvantaged areas by offering education infrastructure and e-learning to students. We expand job opportunities for young adults with IT vocational training. We improve the health and quality of lives in disadvantaged regions with high-tech medical equipment. Our programs are specifically developed and implemented to address local issues.

Green Management -Green management that protects the planet. Samsung Electronics’ Green Management is founded on our Planet First initiative, which puts protection of the earth first. In 2014, we established the new mid- and long-term goals of Eco-Management 2020, which included achieving accumulated 250 million tons of greenhouse gas reduction during the product use phase and reducing greenhouse gas emissions by 70% on KRW-based energy

conversion, based on 2008 standards. We also developed three strategic missions to achieve a range of activities in green products, green workplaces and green communications.

Health & Safety -Creating safe & healthy workplace. Samsung Electronics makes every effort to operate safe workplaces and to protect employee health by creating comfortable and thoroughly safe conditions. Across our workplaces worldwide, we comply with OHSAS 18001, a global standard for occupational health and safety management systems. Besides the world-class safety and health management systems in every workplace, we have established a variety of health-first programs for employees, including professional medical services at an in-house hospital, diet clinics, preventive measures for muscular skeletal disease and several counseling facilities, such as the Life Coaching Center, to help manage mental health.

Sharing Growth -Success Built on helping & dreaming together . As valued partners, our suppliers sharpen the competitive position of Samsung Electronics. With the goal of growing together in global markets, we operate a range of programs designed to bolster supplier skills. To that end, we promote transparent procurement, win-win partnerships and a culture of shared growth. In 2010, we established the Seven Shared Growth Implementation Plan. In 2013, we took that initiative to the next level with the Shared Growth Ecosystem Program. Working within the ecosystem, we plan to extend the benefits of our shared values to second- and third-tier suppliers.

Financial Statements :The reports & statements as disclosed in the Annual Reports are as follows:-

Independent Auditors Report Consolidated Statements of Financial Position Consolidated Statements of Income Consolidated Statements of comprehensive Income Consolidated Statements of changes in Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements

Forward Looking Statements-

Both the annual report include forward-looking statements that relate to future events and can be generally identified by phrases containing words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar meaning. These forward-looking statements are not guarantees of future performance and may involve known and unknown risks, uncertainties and other factors that may affect our actual results, performance, achievements or financial position, making them materially different from the actual future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

This forward looking information is important for investor’s decision making as this information may raise an expectation of reliability in investors.

Companies who approach reporting with the right mindset – one of transparency, not merely a perceived response to increasing red tape, will have a real opportunity to leverage their reporting to increase investor understanding.

Point No 4: Audit Report & its Scope

Apple:

Name of the Auditor: Ernst & Young

Scope of Audit/Nature of Assurance: Audit has been conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that auditor 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.

Samsung:

Name of the Auditor: Price Water Coopers (PWC)

Scope of Audit/Nature of Assurance:

Audit has been conducted in accordance with the Korean Standards on Auditing. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

The purpose of auditing standards generally accepted in the Republic of Korea (“KSAs”) is to establish basic principles and essential procedures1 for auditors to comply with in their performance of audits of financial statements, including consolidated financial statements and conglomerate combined financial statements, as required under Article 5 of the Act on External Audit of Stock Companies (referred to as “External Audit Act”, herein after).

The term “scope of an audit” refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit. The procedures required to conduct an audit in accordance with KSAs should be determined by the auditor having regard to the requirements of KSAs and, where appropriate, the terms of the audit engagement and reporting requirements.

Nature of Assurance-

An audit in accordance with KSAs is designed to provide reasonable assurance that the financial statements taken as a whole are free from material misstatement. Reasonable assurance is a concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole. Reasonable assurance relates to the whole audit process.

Point No 5: Comparative Set Of Financial Statements

Apple:

Balance Sheet:

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands and par value)

2014 2013$ $

ASSETS:Current assets:

Cash and cash equivalents 13,844 14,259

Short-term marketable securities 11,233 26,287

Accounts receivable, less allowances of $86 and $99, respectively

17,460 13,102

Inventories 2,111 1,764Deferred tax assets 4,318 3,453

Vendor non-trade receivables 9,759 7,539Other current assets 9,806 6,882

Total current assets 68,531 73,286Long-term marketable securities 130,162 106,215

Property, plant and equipment, net 20,624 16,597Goodwill 4,616 1,577

Acquired intangible assets, net 4,142 4,179Other assets 3,764 5,146

Total assets231839.0

0207000.0

0

LIABILITIES AND SHAREHOLDERS’ EQUITY:Current liabilities:Accounts payable 30,196 22,367Accrued expenses 18,453 13,856Deferred revenue 8,491 7,435Commercial paper 6,308 0

Total current liabilities 63,448 43,658Deferred revenue – non-current 3,031 2,625

Long-term debt 28,987 16,960Other non-current liabilities 24,826 20,208

Total liabilities 120,292 83,451

Commitments and contingenciesShareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized;

5,866,161 and 6,294,494 shares issued and outstanding, respectively

23,313 19,764

Retained earnings 87,152 104,256Accumulated other comprehensive income/(loss) 1,082 (471

Total shareholders’ equity 111,547 123,549

Total liabilities and shareholders’ equity 231,839 207,000

P&L Statement:

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)

2014 2013 2012$ $ $

Net sales 182,795 170,910 156,508Cost of sales 112,258 106,606 87,846

Gross margin 70,537 64,304 68,662

Operating expenses:Research and development 6,041 4,475 3,381

Selling, general and administrative

11,993 10,830 10,040

Total operating expenses 18,034 15,305 13,421

Operating income 52,503 48,999 55,241

Other income/(expense), net 980 1,156 522

Income before provision for income taxes

53,483 50,155 55,763

Provision for income taxes 13,973 13,118 14,030

Net income 39,510 37,037 41,733Earnings per share:

Basic 6.49 5.72 6.38Diluted 6.45 5.68 6.31

Shares used in computing earnings per share:

Basic 6,085,572 6,477,320 6,543,726Diluted 6,122,663 6,521,634 6,617,483

Cash dividends declared per common share

1.82 1.64 0.38

SAMSUNG:

BALANCE SHEET

Samsung Electronics Co., Ltd. and its subsidiaries

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION31-Dec-14 31-Dec-13

USD Million

USD Million

AssetsCurrent assets

Cash and cash equivalents 15,997.69 15,469.54Short-term financial instruments 39,602.71 34,884.30Available-for-sale financial assets 3,122.26 1,414.01

Trade receivables 23,458.36 23,737.56Non-trade receivables 3,362.66 2,742.85

Advances 1,889.87 1,831.66Prepaid expenses 3,179.06 2,349.15

Inventories 16,450.56 18,176.94Other current assets 1,705.28 2,028.68Assets held for sale 613.18 2,580.73Total current assets 109,381.6

2105,215.4

2

Non-current assetsAvailable-for-sale financial assets 12,033.35 5,926.08

Associates and joint ventures 4,970.52 6,100.78Property, plant and equipment 76,824.31 71,716.91

Intangible assets 4,545.90 3,781.32Long-term prepaid expenses 4,613.97 3,292.28Deferred income tax assets 4,299.99 4,390.41Other non-current assets 2,217.93 2,934.86

Total assets 218,887.59

203,358.05

Liabilities and EquityCurrent liabilities

Trade and other payables 7,518.48 8,014.76Short-term borrowings 7,627.34 6,116.19

Other payables 9,801.85 8,736.17Advances received 1,355.78 1,620.89

Withholdings 1,103.48 1,117.17Accrued expenses 12,232.14 10,776.60

Income tax payable 2,052.92 3,216.51Current portion of long-term borrowings and debentures 1,689.62 2,304.39

Provisions 5,691.57 6,399.24Other current liabilities 309.93 444.55Liabilities held for sale 26.90 0.00Total current liabilities 49,410.01 48,746.47

Non-current liabilitiesDebentures 1,288.00 1,245.43

Long-term borrowings 96.58 935.80Long-term other payables 2,434.00 1,001.00

Net defined benefit liabilities 191.26 1,762.04Deferred income tax liabilities 3,892.67 5,711.38

Provisions 474.30 437.85Other non-current liabilities 1,427.37 1,012.12

Total liabilities 59,214.19 60,852.10

Equity attributable to owners of the parentPreferred stock 113.49 113.49Common stock 739.10 739.10Share premium 4,183.43 4,183.43

Retained earnings 161,042.66

141,161.09

Other components of equity -12,092.13 -8,985.54Accumulated other comprehensive income attributable to assets held for sale 76.09 0.00

154.06 137.21Non-controlling interests 5,610.78 5,294.38

Total equity 159,673.40

142,505.95

Total liabilities and equity 218,887.59

203,358.05

ANALYSIS:-

The Balance Sheet reveals that the there has been increase in the Current Assets of 4166 Million $ which is approx 3.96% whereas current liabilities have increased by 664 million $ which is a 1.36% hike , so the current financial position has increased since the asset base has increased & is sufficient to pay off the current liabilities.

The liquid assets have increased by 5892 million $ which is an impressive increase of 6.77% thereby increasing the liquidity position of the concern.

Reserves & Surplus have increased from 19882 million $ a whooping increase of 14% . It shows that the profitability of the company has increased.

P&L Account

Samsung Electronics Co., Ltd. and its subsidiaries

For the year ended December 31,2014

2014 2013USD USD

Revenue 195,883 217,244Cost of sales 121,857 130,803Gross profit 74,026 86,441

Selling and administrative expenses 50,254 51,497Operating profit 23,772 34,943

Other non-operating income 3,611 2,308Other non-operating expense 2,147 1,533

Share of profit of associates and joint ventures 325 1,533Financial income 7,846 7,613Financial expense 6,929 7,367

Profit before income tax 26,480 36,444Income tax expense 4,256 7,495Profit for the year 22,223 28,949

Profit attributable to owners of the parent 21,927 28,328Profit attributable to non-controlling interests 296 621

Earnings per share for profit attributable to owners of the parent (in Korean Won, in US dollars)

Basic 145.44 187.94Diluted 145.43 187.9

ANALYSIS-

The revenue for this year has come down by 21361 million $ (9.83%). The non operating expenses have increased by 614 million $ leading to a fall in PBIT of 9964

million $ & fall in PAT by 6726 million $.

Comparison Of The Financial & Income Statement Of The Two Companies

Growth in Assets Growth in Liabilities Growth in Sharehold-ers Equity

Total Liabilities & Shareholders Equity

Apple 0.12 0.441 -0.097 0.12

Samsung 0.0764 -0.0268 0.1204 0.0764

-5%5%

15%25%35%45%

Comparision of Balance Sheets

Growth in Revenue Growth in Operating Profit Growth in Net Profit

Apple 0.07 0.072 0.067

Samsung -0.1 -0.3197 -0.23

-32.50%-27.50%-22.50%-17.50%-12.50%

-7.50%-2.50%2.50%7.50%

Comparision of P&L Accounts

Ratio AnalysisFinancial Ratios Apple Samsung Remarks Current Ratio 1.08 2.21 Measure of companies ability to pay short

term obligationsQuck Ratio 0.89 1.88 Measures the amount of cash, short term

equivalents, and accounts rec that can be used to pay liabilities.

Debt/Equity Ratio 1.08 7 Higher ration shows that a company has been aggressive in financing its growth with debt. A higher ratio makes it more difficult to borrow money.

EPS 6.45(+0.77)

129 (-37) An increase in earning per share is generally considered a favorable trend.

Profitability Ratio 0.21 0.3 Measures profitability with respect to sales

ROI 0.17 0.10 Measures overall effectiveness in generating profits.

ROE 1.69 0.15 Measures earning power on shareholder’s book value investment.

Point 7:

INVESTING DECISION:-

There are plenty of reasons to be bullish on Apple in the coming year. Robust demand for the iPhone 6, which fueled a 16% YOY jump in iPhone unit sales last quarter, should remain strong throughout 2015. Forecasts for the Apple Watch, which will arrive in the spring, range from 10 million (Gene Munster, Piper Jaffray) to 60 million (Katy Huberty, Morgan Stanley).

In 2014, Samsung lost market share in critical markets like China to competitors like Xiaomi,Lenovo, and Huawei, which flooded the market with cheaper handsets with comparable specs. In the second half of the year, Samsung lost ground in the high-end market to Apple, which launched the iPhone 6 Plus to nullify its primary advantage of larger screen sizes.

As a result, Samsung's global market share fell from 32.5% in the third quarter of 2013 to 23.8% in the third quarter of 2014, according to IDC. During that time, Apple's market share only slipped from 12.9% to 12%. Xiaomi, which toppled Samsung as China's top smartphone maker in August, saw its market share more than double from 2.1% to 5.3%.

Samsung hopes that unique premium phones like the Galaxy Note Edge and cheaper emerging market phones like the Galaxy S Duos 3 can help it get back on track, but it's a steep uphill battle. Samsung also hopes that new products like smartwatches, a VR headset, smart glasses, and smart home compatible products can help it diversify away from smartphones, but there's no guarantee that scattergun strategy will work.

OPINION

Apple will keep climbing in 2015 as Samsung stalls out or declines. Apple has major catalysts on the horizon, while Samsung simply faces a lot of obstacles.

Samsung's smartphone woes, its flat-growth semiconductor business, and its low-margin consumer products division are bright red flags for investors considering picking up shares of the South Korean tech giant. Meanwhile, Apple's in-demand iPhones and Macs are poised for growth, especially as the company continues to integrate wearables and smart-tech solutions for users.

Hence investment should be done in apple.

Point 8: Footnotes in Samsung

1. Major Accounting Policies followed:-

Apple-

The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s internal control over financial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and (iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Samsung- The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with the International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying consolidated financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Significant Accounting Policies:-

1. The Korean Accounting Standards Board has published a series of Statements of Korean Financial Accounting Standards (“SKFAS”), which will gradually replace the existing financial accounting standards established by the Korean Financial and Supervisory Board. As SKFAS No. 11, No. 21 and No. 24 became applicable to the Company on January 1, 2007, the Company adopted these statements in its financial statements as of and for the year ended December 31, 2007.

2. In accordance with SKFAS No. 21, Preparation and Presentation of Financial Statements and SKFAS No. 25, Consolidated Financial Statements, the Company separated its capital adjustments account into capital adjustment and accumulated other comprehensive income, and disclosed the details of its comprehensive income in the notes to the consolidated financial statements. In addition, the Company disclosed its earnings pershare on the face of its statements of income and net incomes of the controlling interests and minority interests were presented separately on its statements of income.

3. Use of Estimates

The preparation of the financial statements requires management to make estimates and assumptions that affect amounts reported therein. Although these estimates are based on management’s best knowledge of current events and actions that the Companymay undertake in the future, actual results may differ from those estimates.

4. Principles of ConsolidationThe Company records differences between the investment account and corresponding capital account of subsidiaries as goodwill or negative goodwill, and such differences are amortized over five years using the straight-line method. However, differences which occur from additional investments acquired in consolidated subsidiaries are reported in a separate component of shareholders’ equity, and are not included in the determination of the results of operations. In accordance with accounting principles generally accepted in the Republic of Korea, minority interests in consolidated subsidiaries are presented within equity and identified separately from the equity of the controlling interests in the consolidated balance sheet.

5. Marketable SecuritiesInvestments in equity securities or debt securities are classified into trading securities, available-for-sale securities and held-to maturity securities, depending on the acquisition and holding purpose. Trading securities are classified as current assets while available-for-sale securities and held-to-maturity securities are classified as long-term investments, except those securities that mature or are certain to be disposed of within one year, which are classified as current assets.

6. Revenue RecognitionSales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of the goods are transferred to the buyer. Revenue from installation service contracts is recognized using the percentage-of-completion method.

DIFERENCE BETWEEN KOREAN STANDARDS & US GAAP

CONSOLIDATION Under Korean GAAP, financial statements are prepared on a non-consolidated basis and also on a

consolidated basis for entities with subsidiaries or controlled companies. Certain large business groups are required by the Government to prepare combined financial statements.

Under U.S. GAAP, the primary financial statements are prepared on a consolidated basis. In limited cases, non-consolidated financial information for the parent company only and combined financial statements may be presented as supplementary information.

SECURITIES VALUATION Under Korean GAAP, debt and equity securities bought and held for the purpose of selling them in

the near term are classified as marketable securities and other securities are classified as investment securities.

Marketable securities are reported at fair value, and valuation gains or losses are reported in current operations.

Investments in equity securities with readily determinable fair values and investments in available-for-sale debt securities are reported at fair value with unrealized gains or losses reported as a capital adjustment in shareholders’ equity until realized.

Under U.S. GAAP, Statement of Financial Accounting Standards (“SFAS”) No. 115 “Accounting for Certain Investments in Debt and Equity Securities” requires investments in all debt securities and equity securities with readily determinable fair value to be classified into three categories and accounted for as follows: (1) Debt securities that a company has the positive intent and ability to hold to maturity are reported at amortized cost; (2) Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are reported at fair value with unrealized gains and losses included in earnings; and (3) Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as “available-for-sale securities” and reported at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income, a component of equity.

Accounting for Transfers of Assets Under Korean GAAP, transfers of assets, which are conducted in accordance with the Korean Asset

Securitization Act, are recorded as sales. Gains or losses on sales are determined as the difference between the carrying amount of the assets sold and the net proceeds received, and recognition should be given to the potential cost of the recourse obligation.

Under U.S. GAAP, such transactions result in recording transferred assets as sold only if the transferor has surrendered control over the transferred assets and all the following are met: • transferred assets have been isolated from the transferor presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, • each transferee (or, if the transferee is a qualifying special-purpose entity, each holder of its beneficial interests) has the right to pledge or exchange the assets (or beneficial interests) it received, and no condition both constrains the transferee (or holder) from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor, and • the transferor does not maintain effective control over the transferred assets through either (1) an agreement that both entitles and obligates the transferor to repurchase or redeem them before their maturity or (2) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call.

Provisions, Contingent Liabilities and Contingent Assets Under Korean GAAP, a company records a liability provision for expenses matched with the related

income in the current period if the expense is certain and if the amount of the expense is reasonable. If a decrease in net assets is certain and the loss can be reasonably estimated, a contingent loss is recognized in current operations. However, a contingency gain is not recognized in current operations until the contingent conditions are resolved.

Under US GAAP , a company recognizes a provision if, and only if: a present obligation (legal or constructive) has arisen as a result of a past event (the

obligating event); payment is probable, or more likely than not; and the amount can be estimated reliably

Revenue Recognition Under previous Korean GAAP, product revenues are recognized when goods are sold and delivered

and service revenues are recognized on the percentage completion method. Under U.S. GAAP, revenue should be recognized when the earnings process is completed or virtually

completed and the revenue is realized or realizable.

a) Yes the Financial Statements are prepared in accordance with the International Statements.

Segmentaion Information:

a) Yes the Companies also provide the Segment Information of the industry in which they operate.

Apple:

The following table shows information by operating segment for 2014, 2013 and 2012 (in millions):

2014 2013 2012Americas: (in $)Net sales 65,232 62,739 57,512Operating income 24,316 22,817 23,414 Europe: Net sales 40,929 37,883 36,323Operating income 14,771 13,025 14,869 Greater China: Net sales 29,846 25,417 22,533Operating income 11,016 8,541 9,843 Japan: Net sales 14,982 13,462 10,571Operating income 7,183 6,819 5,861 Rest of Asia Pacific: Net sales 10,344 11,181 10,741Operating income 3,636 3,753 4,253 Retail: Net sales 21,462 20,228 18,828Operating income 4,575 4,025 4,613

The following table shows total assets by segment and reconciliation to the Consolidated Balance Sheets as of September 27, 2014 and September 28, 2013 (in millions):

2014 2013Segment assets: (in $)Americas 9,352 5,653Europe 4,631 3,134Greater China 3,172 2,943Japan 3,106 2,932Rest of Asia Pacific 908 923Retail 3,626 3,329 Total segment assets 24,795 18,914Corporate assets 207,044 188,086 Total assets 231,839 207,000

Samsung:

In Million $ Korea America Europe Asia & Africa

China

Intercompany elimination

within the group

Consolidated

Net segment revenue 17,412 57,712 36,073 34,273 27,742 0 173,213

Non-current assets1

53,219 6,426 712 3,769 8,371 -544 71,953

Note- Total of non-current assets other than financial instruments, deferred tax assets, and investments in associates and joint ventures.

Segment reporting is the reporting of the operating segments of a company in the disclosures accompanying its financial statements. Segment reporting is required for publicly-held entities, and is not required for privately held ones. Segment reporting is intended to give information to investors and creditors regarding the financial results and position of the most important operating units of a company, which they can use as the basis for decisions related to the company.

b) Contingent Liabilities Yes the companies provide information about the contingent liabilities in their Footnotes. When it is

probable that an outflow of economic benefits will occur due to a present obligation resulting from a past event, and the amount is reasonably estimable, a corresponding provision is recognized in the financial statements. However, when such outflow is dependent upon a future event that is not

certain to occur, or cannot be reliably estimated, a disclosure regarding the contingent liability is made in the notes to the financial statements.

Contingent Liability should be recorded in the Footnote since there is no fixed liability at the time of preparation of the financial statements. The accounting rules for the treatment of a contingent liability are quite liberal - there is no need to record a liability unless the risk of loss is quite high. Thus, you should review the disclosures accompanying a company's financial statements to see if there are additional risks that have not yet been recognized. These disclosures should be considered advance warning of amounts that may later appear as formal liabilities in the financial statements.

When you record a liability in the accounting records, this does not mean that you are also setting aside funds to pay for the liability when it must eventually be paid – recording a contingent liability has no impact on cash flow.

c) Information about the Company’s compensation packages

The Companies provide the details of the Company’s executive & management Compensation packages .They recognize expenses for short-term benefits , long-term benefits and severance benefits . Key management consists of registered executive officers who have the authority and responsibility in the planning, directing and controlling of Company operations.

The Auditors fee are disclosed in the Annual Report .

d) Information about Share Prices & dividends

APPLE:

No of Outstanding Shares: 6294494 Market Value: $462522 Million P/E Ratio: 15.62

SAMSUNG:

No of outstanding Shares-Listed Shares 159,047,430 , Unlisted Shares 78,162,215 Market Value- PE Ratio-1.09 Price Per Share/Book Value Per Share-1.34

Interpretation- In essence, the price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings. This is why the P/E is sometimes referred to as the multiple because it shows how much investors are willing to pay per dollar of earnings.