Board of Directors’ Report

In the opinion of the board of Directors the conclusive statement of the financial position of the group for the year 2002 cannot be expected to provide as full an understanding of the financial performance, financial position and investment activity of the company.

The Company has seen an increase in the current account payable liabilities for the year 2002. It is, in the Directors view, due to the fact that the group has been looking for new opportunities and expanding its operation around the world; hence an increase was predictable. The increase in partners' equity and retained earnings for the year 2002 is due to the Board's decision, which was taken in the beginning of the financial year.

The decline in the receivables for the financial year 2002 in the Board's view is due to the global economic slowdown. The Board is of the view that with a global economic recovery, the company should see a rise in receivables. However, due to the current uncertainty, the board will refrain from making any prediction for next financial year.

The overall view of the Board on the statement of financial position is that it is satisfactory.

Board of Directors,
DELAMORE & OWL GROUP OF COMPANIES