INTRODUCTION
We, Philip Michael Lyon and Alistair Steven Wood, of Mazars Neville Russell, Chartered Accountants, Tottle Road, Nottingham NG2 1RT, Licensed Insolvency Practitioners, make this report under 2.2 of the Insolvency Act 1986 in connection with the petition presented by the directors of Imperial Consolidated Limited, Imperial Consolidated Financiers Limited and Imperial Phoenix Finance Limited ("the companies") for an Administration Order in respect of the companies.

Our firm received formal instructions to prepare this report on 2 June 2002. Prior to 2 June 2002, neither this firm nor any of our partners had acted for the company, or its directors in any capacity.

In preparing this report we have relied upon information supplied to us by the Director of the companies, and obtained from the companies' management accounts. This firm has not carried out an audit or otherwise verified the information received.

Mazars Neville Russell is the UK firm of Mazars an international firm of accountants and business advisors, it is the 6th largest firm in Europe. It has over 400 partners and 5000 staff worldwide and has offices in 51 countries including the West Indies, which will enable it to deal with both the UK aspects of this case and the international aspects of the related companies activities in Grenada and the British Virgin Islands.