Brinco Limited and Subsidiaries

Consolidated Statement of Retained Earnings

for the year ended December 31. 1981 (with comparative figures for 1980)

Retained earnings at beginning of year Net earnings for the year

Amalgamation expenses Dividends on preferred shares

Retained earnings at end of year

See accompanying notes

Brinco Limited and Subsidiaries

Auditors’ Report to the Shareholders

We have examined the consolidated statement of financial position of Brinco Limited < at December 31, 1981 and the consolidated statements of earnings, retained earnin and changes in financial position for the year then ended. Our examination was mad: accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances.

In our opinion, these consolidated financial statements present fairly the financial position of the company as at December 31, 1981 and the results of its operations ai the changes in its financial position for the year then ended in accordance with __ generally accepted accounting principles applied on a basis consistent with that of the preceding year. :

Pat, hance 4

February 24, 1982 Chartered Accountants

Toronto, Canada