AUDITORS' REPORT TO THE MEMBERS

We have audited the annexed Balance Sheet of INTERNATIONAL GENERAL INSURANCE COMPANY OF PAKISTAN LIMITED as at December 31, 2001 and the related Fire, Marine and Motor and Miscellaneous Business Revenue Accounts, Profit and Loss Account, Profit and Loss Appropriation Account, Cash Flow Statement and Statement of changes in Equity, together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.

It is the responsibility of the Company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Insurance Ordinance, 2000. Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that:

(a) In our opinion, proper books of accounts have been kept by the Company as required by the Companies Ordinance, 1984;

(b) in our opinion:

(i) the Balance Sheet, Fire, Marine and Motor and Miscellaneous Business Revenue Accounts, Profit and Loss Account, Profit and Loss Appropriation Account, Cash Flow Statement and Statement of Changes in Equity, together with the notes thereon have been drawn up in conformity with the provisions of Insurance Ordinance, 2000, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied;

(ii) the expenditure incurred during the year was for the purpose of the Company's business; and

(iii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the Company;

(c) we have verified the cash and bank balances and investments by actual inspection or by the production of certificates from custodians of investments and Company's bankers;

(d) in our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Fire Marine and Motor and Miscellaneous Business Revenue Accounts, Profit and Loss Account, Profit and Loss Appropriation Account, Cash Flow Statement and Statement of Changes in Equity, together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Insurance Ordinance, 2000, in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at December 31, 2001 and of the profit, its cash flow and changes in equity for the year then ended; and

(e) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980) was deducted by the Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.

Ford, Rhodes, Robson, Morrow

Karachi: March 01, 2002                                                       Chartered Accountants