1 Writing

Please rewrite the following passage in good, clear English. The purpose is to highlight the
construction-industry expertise of Allied Accountants, an Egyptian firm, in its corporate brochure.

Please do whatever you feel is necessary to make the text read well, and please use British spelling.

Allied Accountants

Construction
The government of Egypt is undergoing a large scale reconstruction program engaging primarily
European contractors of the private sector and for certain of the specialised fields with the assistance
of the United States of America, United Kingdom and France to upgrade its existing electric power
stations, sewerage and water systems, Olympic stadiums, sea ports and high dams on the Nile.

These projects are undertaken mainly by joint venture, between companies of those countries and
Egyptian contractors. We, as Allied Accountants, are requested by our clients, either Egyptian or
foreign, to register a joint venture, an Egyptian company or establish a branch of the foreign entity in
Egypt as the legal entity which enters into the joint venture.

In addition we assist the client in installing a suitable accounting system in the circumstances either
manual or computerised depending on the size and complexity of the transactions involved.
2 Copy editing

Please mark up your corrections, changes and any comments (including any questions for the writer)
on the text below, which is to be included in a newsletter distributed to members of the company’s
financial services team. Please use British spelling.

The insurance industry in India

The emerging markets have been a roller coaster ride for many investors, but India has retained it’s Commented [TS1]: its

place as one of the more significant – and attractive – investment opportunities for european financial Commented [TS2]: one of the most significant and
attractive investment opportunities for European financial
institutions. This parly reflects the economic liberalization of the past five years, but the shear size of Commented [TS3]: partly

the market, Indias regional dominance, and forecasted GDP growth of 6-8% per annum over the next Commented [TS4]: sheer
Commented [TS5]: India’s
five years has insured its position amongst potential investors. Two partners from the Indian financial Commented [TS6]: Double spacing

markets practice, which is based in Bombay, looked at movements in the fast growing retail sector. Commented [TS7]: observed
Commented [TS8]: This line seems a bit out of context.
Either we give some more background here, or introduce the
Insuring the future context at a later stage. What is the purpose of introducing
the two partners here?
India’s insurance sector has been around since 1850, and all existing life companies were nationalized Commented [TS9]: insurance companies

in 1956 under a single entity, the Life Insurance Corporation of India (LIC); this nationalization was

extended to general insurers in 1973 and a holding company, the general Insurance Corporation of Commented [TS10]: General

India (GIC), established. In line with many nationalized companies the industry is ripe for re- Commented [TS11]: Double spacing

engineering to correct the high cost of operations and low return on investment and to enhance

customer service. Market penetration is also surprisingly weak, with only 66m policy holders out of a Commented [TS12]: Double spacing

population of over 900m.

Bobby Demish, partner in Bombay, points out that the long term potential in this area is notable. Commented [TS13]: a

“There is basically an insurable population of over 200 people, in a country with traditionaly high Commented [TS14]: traditionally

saving rates. There are a number of clearly underdeveloped market sectors, and considerable demand Commented [TS15]: can be omitted
Commented [TS16]: a
for tailor made products to meet the needs of the countrys burgeoning middle classes. The
Commented [TS17]: country’s
government has made a comitment in principal to privatise the industry, following on from the Commented [TS18]: commitment

recommendation of the Malhotra Committee in 1993. But this remains politically sensitive, especially

given the size of the industry workforce (over 1m people, directly and indirectly). The government
has established a regulator, the IRA, but industry regulation as a whole will need an overhaul before Commented [TS19]: Abbreviation to be elaborated when
being used for the first time.
privatization can take place.”

Fund management comes of age

Fund management, like insurance, was government monopoly until 1992, when private players where Commented [TS20]: were

allowed to establish domestic mutual funds in competition with the Unit Trust of India, nationalized Commented [TS21]: constituting the nationalized banks
with
banks with insurance companies. Since then, a number of funds have been set up in colaboration with Commented [TS22]: collaboration

international managers including Kleinwort Benson and JP Morgan, and a few international players

including Morgan Stanley and Jardine Fleming have established majority owned fund management

operations.

The industry is regulated by India’s Securities and Exchange Board of India. It’s guidelines are Commented [TS23]: Its

currently under review in areas such as:

 NAV calculations to introduce some degree of reporting consistency and allow performance Commented [TS24]: Abbreviation to be elaborated

comparisons;

 Borrowing funds to meet redemption requirements, subject to certain limits;

 Listing and repurchase of units, and Commented [TS25]: ;

 minimum net worth requirements, which are proposed to double from the existing level of Commented [TS26]: Minimum

US$1.6 million. Commented [TS27]: US$ 1.6 million

Most closed-ended funds are presently trading at discounts to NAV, some quite significant, and the

proposed revisions should address some of the underlying causes. It is believed that retail investors

became disenchanted with foreign fund mangers after Morgan Stanley raised around US$ 30m for its

first equity fund, which is trading at a discount to NAV over two years after its launch. Indeed, retail

investors have historically equated mutual fund investments with those in primary market equity new

issues, where substantial appreciation shortly after issue was not uncommon.
The exception gap is closing with the failure of some new equity issues, but it’s generally felt that

mutual funds must educate buyers on investment principals, and what constitutes reasonable

performance expectations. Templeton, which is shortly launching it’s first fund, is conducting an Commented [TS28]: its

extensive educational ad campaign in this area.

Bobbie remains optimistic. “There is no doubt that things will be tough for the next 2 to 3 years, after

which the potential is enormous. Key success factors are going to be managing investor perception

which is an overall industry issue, best practises in distribution and investor servicing, and the

development of domestic fund management skills.

“A number of international fund mangers are actively reviewing opportunities in India. These include Commented [TS29]: managers

a number of European insurers, which are considering entering the local fund mangement industry. Commented [TS30]: management

This will turn on the liberalization of insurance regulations to licence the entry of foreign insurance

companies into India.” Commented [TS31]: Bobbie remains optimistic, “There is

no doubt that things will be tough for the next 2 to 3 years,
after which the potential is enormous. Key success factors
are going to be managing investor perception which is an
overall industry issue, best practises in distribution and
investor servicing, and the development of domestic fund
management skills.
- ends - A number of international fund mangers are actively
reviewing opportunities in India. These include a number of
European insurers, which are considering entering the local
fund mangement industry. This will turn on the
liberalization of insurance regulations to licence the entry of
foreign insurance companies into India.”