I have audited the attached financial statements which have been prepared in accordance with accounting principles generally accepted in Hong Kong.

Under section 7(4) of the Trading Funds Ordinance (Cap. 430), the General Manager, Land Registry Trading Fund is responsible for the submission of financial statements prepared in accordance with generally accepted accounting principles and signed by her to me. In preparing the financial statements, the General Manager, Land Registry Trading Fund has to select appropriate accounting policies and to apply them consistently.

It is my responsibility to form an independent opinion, based on my audit, on those statements and to report my opinion to you.

I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements. I believe that my audit provides a reasonable basis for my opinion.

In my opinion the financial statements give a true and fair view of the state of affairs of the Land Registry Trading Fund as at 31 March 2004 and of the results of its operations and cash flows for the year then ended and have been properly prepared in accordance with the manner provided in section 7(4) of the Trading Funds Ordinance.