City General Insurance Company Limited.

Risk factorThe earning forecast has been evaluated by the management, not by any outsideagencies, banks or financial investments.Management PerceptionCity General Insurance Management has evaluated the earning forecast based ontheir experience and trend in business and is not likely to vary widely.Risk factor68.62% of its net premium comes from Marine Cargo. If there is any down trend inthe Marine Cargo business, the earning of the Company may be affected adversely.Management PerceptionAlthough the main business the Company comes from the Marine Cargo to othersector of Insurance, Management posses the capability of developing business inother sector also.Risk factorAs per audited financial statement of December 31, 2006, City General InsuranceCompany Ltd. earned a net profit of Tk.71 lac from interest on FDR, which is 59%of total net profit. The income on fixed deposit may fall with the reduction of FDRrate of commercial banks as per current trend.Management PerceptionIf the income on fixed deposit falls the Company will alternative for investment ofits existing FDR’s as well as surplus fund.Use of proceedsThe proceeds of IPO will strengthen the capital base of the company and augmentbusiness expansion. The funds thus raised through this public issue would begenerally utilized in the normal lending and investment business of the company.