APPENDICES

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BANK CROZIER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

AT SEPTEMBER 30th, 2003

Incorporation and Principal Activities

Significant Accounting Policies

Tables

Accounts Receivable and Prepayments

Table A Fixed Assets

Table B Depreciation Schedule

Foreign Exchange

Table C Net Book Value

Related Parties

Table D Realization

Cash At Bank

Amounts due from subsidiary companies

Investments

Customers Deposits

Share Capital

Balancing Figure

(1) INCORPORATION AND PRINCIPAL ACTIVITY

The Bank is incorporated in Grenada and holds a Class 1 Offshore Banking Licence in the Offshore Banking Act of 1996. The licence was revoked on September 7^th 2003, in pursuant with Section 20 (10 B) of that same act, by the Minister of Finance Honorable Anthony Boatswain. The Bank was then put into liquidation by a Court Order made before Honorable Madam Justice Charmaine Pemberton on July 24^th, 2003. The balance sheet is therefore prepared on the assumption that the assets are being liquidated. Hence only the potential realization amounts have been taken into consideration.

(2) SIGNIFICANT ACCOUNTING POLICIES

(a) Overall Policy

These financial statements have been prepared in compliance with international accounting standards and in accordance with the historical cost convention and are expressed in United States Dollars. Given that the company is in liquidation as per the Order of the Court, the financial statements were prepared on the basis of the expected realization amounts of the assets and liabilities. All the assets were written down to their potential realization and all liabilities were stated at the known legitimate amount based on creditors certified claims received as at January 31^st, 2004 restricted to the maximum payout based on asset realization in the event of a distribution.

(b) Accounts Receivable and Prepayments

Amounts due from related parties and other receivables represent the principal amounts due at the balance sheet date plus accrued interest, restricted to the estimated amount based on the information as at January 31^st, 2004.

(C) Depreciation

Depreciation is calculated on the straight –line basis, so as to write off the cost of property, plant and equipment over their estimated useful lives as follows:

Leasehold improvements	10%
Motor vehicles	20%
Office furniture and equipment	10%
Computers	16 2/3%

Table A - Fixed Assets

Asset	Actual/ Cost	Earned/ NBV	Realization (Marked Down 75%)

Computer Equipment	$286,055	$214,552	$53,638
Leasehold Improvements	26,241	18,288	4,572
Furniture	100,851	52,704	13,176
Motor Vehicle	75,944	9,289	2,322
Total	$489,091	$294,833	$73,708

Table B - Depreciation Schedule

Asset	Cost	Dep. Rate (%)	Dep. 1 yr.	Dep. 0.5 yrs

Computer Equipment	$286,055	16 2/3	$47,673	$23,828
Leasehold Improvements	26,241	10	2,624	1,312
Furniture	100,851	10	10,085	5,042
Motor Vehicle	75,944	20	15,188	7,594
Total	$489,091		$75,572	$37,776

Table C – Net Book Value

Asset	Net Book Value (2001)	(Less) Acc. Dep.	Net Book Value

Computer Equipment	$286,055	$71,502	$214,552
Leasehold Improvements	22,225	3,936	18,288
Furniture	67,832	15,127	52,704
Motor Vehicle	32,073	22,783	9,289
Total	$408,185	$113,349	$294,833

Table D - Realization

Asset	Net Book Value	(Marked Down 75%)

Computer Equipment	$214,552	$53,638
Leasehold Improvements	18,288	4,572
Furniture	52,704	13,176
Motor Vehicle	9,289	2,322
Total	$294,833	$73,708

(d) Foreign Exchange

Assets and liabilities denominated in foreign currencies are translated into United States Dollars at the rate of exchange ruling at the end of the financial year. Transactions arising during the year involving foreign currencies have been converted at the rate prevailing on the dates the transactions occurred. Differences arising from the fluctuations in the exchange rates are included in the Statement of Income.

(e) Related Parties

Parties are considered related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operating decisions.

(3) CASH AT BANKS

Grenada Co-Operative Bank Limited USD$ 137,540 (As at January 31^st, 2004)

RBTT Grenada Limited USD$ 5,000,000 (Frozen by the Court)

Total USD$ 5,137,540

(4) AMOUNTS DUE FROM SUBSIDIARY COMPANIES

This represent outstanding amounts from loans and other credit facilities given to related companies. Of these investments only two can be included as realizable amounts since there is no information on the type of arrangement between these parties and the Bank.

Table E – Amounts due from subsidiary companies

Company	Actual	Earned	Realization

Bank Crozier International Ltd.	$8,869
Croztrade Securities Ltd.	303,091
Blue Ocean Properties	437,305		222,000
Stourbridge Limited	5,841,200		1,000,000
Total	$6,590,465		$1,222,000

(5) INVESTMENTS

The Investments are stated at the expected realization amount. Only two investments have been acknowledged, namely the investments in Bear Stearns and Stourbridge. The other investments have been excluded since their existence could not be established and the realization of sums from their liquidation appears unlikely.

Table F - Investments

Asset Actual Earned Realization

Unistar $1,500,000 $400,000 0

Stourbridge (Exchange Bank and Trust) 2,500,000 0 2,000,000

Bear Stearns 1,000,000 600,000 60,000

Ohman Investments 6,082,995 0 0

Nordnet Securities 17,846 0 0

Addtrust Securities 3,331,000 0 0

Total $14,431,841 $1,000,000 $2,060,000

(6) CUSTOMER DEPOSITS

The amount of customer deposits has been verified with that on the Odyssey Suite accounting system used at the Bank, resulting in a difference arising in the actual liability. The actual liability of USD$16,494,431 includes amounts attached to illegitimate creditors and persons owing the Bank.

Table G – Customers Deposits

Account Name Balance Sheet (2001) Actual Liability

Debit Card $276,175 0

Current Accounts 7,746,335 $9,543,477

Credit Card - Security Deposit 63,376 5,000

Certificates of Deposit 7,347,761 3,469,124

Money Market 267,423 316,498

Fixed Deposit 374,980 0

Executive 4,419,743 1,930,760

Safeplus 583,970 1,068,572

Performer 100,000 161,000

Total $21,179,763 $16,494,431

(7) SHARE CAPITAL

The share capital represents the original share capital assuming that it remains intact.

(8) BALANCING FIGURE

This is an estimate for payout in the event of a distribution. It represents approximately 38% of the customer deposits shown in the recalculated financial statements as at January 31^st, 2004.

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Appendix C

BANK CROZIER LIMITED (IN LIQUIDATION)
SUMMARY OF COLLECTION AND DISBURSEMENTS
FOR THE PERIOD BEGIN. JULY 2003
(Stated in United States Dollars)
July
Total Expenses	40,478
Total Income	0


August
Total Expenses	47,105
Total Income	4,494


September
Total Expenses	78,201
Total Income	9,363


October
Total Expenses	49,983
Total Income	2,992


November
Total Expenses	33,101
Total Income	367


December
Total Expenses	35,400
Total Income	2,587


January
Total Expenses	25,249
Total Income	5,696