Directors Report 1

Directors' report for the year ended 31 March 2010
The directors present their annual report and the consolidated audited financial statements of the group for the year ended 31 March 2010
Business review and principal activities The principal activities of the group are ship owning and ship management
The results of the group for the year are set out in the profit and loss account on page 5
Future outlook The performance of the Group dunng the year continued to be negatively affected due to the impact of the global economic cnsis on its pnncipal business, as freight rates remained low and the capacity of the fleet was reduced However, market conditions have improved in the 12 months prior to the signing of these accounts, and whilst conditions are expected to remain challenging, the Group will continue to seek new opportunities with a view to providing sustainable growth
Principal risks and uncertainties The key business nsks that affect the group are considered to relate to ship freight pncing, foreign exchange rates, the global economic environment and funding of the defined benefit pension scheme
Financial risk management The group's operations expose it to a variety of financial risks that include the effects of changes in debt market pnces, credit risk, liquidity nsk and interest rate risk The group seeks to limit the adverse effects on financial performance by monitoring levels of debt finance and the related finance costs Price risk The group is not exposed to commodity price nsk as a result of its operations and has no exposure to equity securities price risk as it holds no listed or other equity investments Credit risk Appropriate credit checks are made on potential significant customers before sales are made Where debt finance is utilised, this is subject to pre-approval by the board of directors Liquidity risk The group meets its day to day working capital requirements through banking facilities which are subject to periodic renewal The group also has a $12 5 million bank loan which is secured on the related vessel which it part financed The loan is repaid by quarterly instalments To manage its liquidity nsk the group regularly prepares cash flow forecasts and maintains on ongoing dialogue with its bankers Interest rate cash flow risk The interest rate on the loan that part-financed the purchase of a vessel was fixed in to order to limit the exposure to fluctuating interest rates The appropriateness of the group's policy will be reviewed should its operations change in size or nature Foreign exchange risk The group is exposed to foreign exchange risk as the result of its US Dollar borrowings, together with sales and purchases made in foreign currencies, principally US Dollars and Euros To manage this exposure the company holds separate Euro and US Dollar bank accounts and seeks to off-set sales, purchases and debt interest and repayments in the same currency The group does not hedge the retranslation risk on its US Dollar borrowings and, in consequence, there may be significant gains or losses recorded in a single financial year However, over the life of the loan, the group expects that its natural hedging will cover its foreign exchange risk
Key performance indicators ("KPIN") Turnover for the year decreased by 35 5% (2009 ? 10 4% increase) due to the impact of the global credit crunch, which led to reduced freight rates and a reduction in fleet capacity, and operating loss for the year expressed as a percentage of turnover was (14 4)% (2009 restated -(2 1)%)
International Maritime Group Limited

Directors' report for the year ended 31 March 2010 (continued)
Directors The directors, who held office during the year and up to the date of signing the financial statements, are given below Mr BE K Gilmour Mr B 1 Corlett Mr R K Campbell Mr W A Plant
Going concern The directors recognise that whilst trading conditions have improved over the 12 months up to the date these accounts were signed, the economic environment remains challenging and this does create a degree of uncertainty in some elements of the group's likely future performance The main factor that might impact the ongoing performance is the secunng of additional tonnage for its shipping activities on suitable charter terms In view of the above, the group prepared a number of alternative projections of trading performance and cash flow to March 2012 based on varying levels of fleet capacity In undertaking this process, the directors considered the financial facilities available to the group (comprising an overdraft facility and an asset-backed currency loan), and identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements These measures include the renewal of bank facilities, the part deferral of loan repayments, and asset disposal, which have been used successfully in pnor penods, if appropnate
The overdraft facility is due for renewal on 30 Apnl 2011 and the group will open renewal negotiations with Bank of Scotland in due course and has at this stage not sought any wntten commitment that the facility will be renewed However, the group has held discussion with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms As per note 14, the group is in breach of the debt service covenant on its currency loan with Allied Insh Bank plc Without commitment, the bank has confirmed in wntmg and in discussion that it does not intend to exercise any of its rights in relation to this breach for the foreseeable future Furthermore, discussion has been held with the bank regarding prospective future breaches of the debt service covenant and continuing with the current part-deferral of loan repayments, and no matters have been drawn to the group's attention to suggest that continuation of this agreement may not be forthcoming on acceptable terms In addition, the pension scheme to which the group is liable to fund a proportion of its deficit, the Merchant Navy Offices Pension Fund (MNOPF), issued a demand in May 2010 in respect of the 2009 actuanal valuation, which outlined a number of settlement options These included an option to pay in instalments over 10 years subject to the satisfactory completion of a credit review The directors believe that once the credit review has been completed, this option will be made available to the group by the Trustees, and therefore the group will be able to meet the liability out if its current agreed facilities, for the foreseeable future In view of the foregoing, the directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future For these reasons, they continue to adopt the going concern basis in prepanng the annual report and accounts
Interest and dividends A dividend for the year ended 31 March 2010 of ?1,278,000 (2009 ?1,278,000) has not been paid in respect of non-equity shares due to insufficient distributable reserves As the company has adopted FRS 25 "Financial Instruments disclosure and presentation", the financial statements recognise these dividends as an interest cost as the related shares are classified as liabilities A currency loan taken out to finance the purchase of a vessel has been retranslated at the 31 March 2010 exchange rate of $1 5159, with the resulting profit of ?495,000 (2009 ?2,146,000 loss) disclosed in interest receivable as a profit on translation of foreign currency borrowings The group's loss for the financial year was ?3,502,000 (2009 restated loss of ?2,590,000) which will be deducted from reserves The directors do not recommend the payment of a dividend (2009 thil)

2.0

International Maritime Group Limited

Directors' report for the year ended 31 March 2010 (continued)
Charitable donations During the year the group made various charitable donations totalling ?1,370 (2009 ?1,990) Donations were made to various manhme charities
Directors' responsibilities statement The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In prepanng those financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently, ?make Judgements and estimates that are reasonable and prudent, ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
Auditors and disclosure of information to auditors Each director, as at the date of this report, has confirmed that insofar as they are aware there is no relevant audit information (that is, information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information This confirmation is given and should be interpreted in accordance with the provisions of s418of the Companies Act 2006 Deloitte LLP have expressed their willingness to continue in office as auditors, and a resolution to reappoint them will be proposed at the Annual General Meeting R K Campbell Director 22 December 2010

rder of the Board
Independent auditors' report to the members of International Maritime Group Limited
We have audited the group and parent company financial statements (the "financial statements") of International Maritime Group Limited for the year ended 31 March 2010 which comprise the group profit and loss account, the group statement of total recognised gains and losses, the group and company balance sheets, the group cash flow statement, the statement of accounting policies and the related notes 1 to 26 The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors
Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error This includes an assessment of whether the accounting policies are appropnate to the company's circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates made by the directors, and the overall presentation of the financial statements

Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the group and parent company's affairs as at 31 March 2010 and of its loss for the year then ended, ?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and ?have been prepared in accordance with the requirements of the Companies Act 2006
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or ?the financial statements are not in agreement with the accounting records and returns, or ?certain disclosures of directors' remuneration specified by law are not made, or ?we have not received all the information and explanations we require for our audit

Paul Feechan (Senior Statutory Auditor) for and on behalf of Deloitte LLP Chartered Accountants and Statutory Auditors Newcastle upon Tyne, UK 22 ?cc,ALi02oic
International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2010
Sheet1 There is no difference between the loss on ordinary activities before taxation and the retained loss for the year stated above, and their histoncal cost equivalents All activities denve from continuing operations
Statement of recognised gains and losses for the year ended 31 March 2010.0 Sheet2 5.0

International Maritime Group Limited Group balance sheet as at 31 March 2010 Sheet3 The financial statements of International Mantime Group Limited, registered number 3388707, on pages 5 to 30, were approved by the board of directors on 22 December 2010 and were signed on its behalf by aii. 1)64 W A Plant Director 6.0

International Maritime Group Limited Company balance sheet as at 31 March 2010
Sheet4 The financial statements of International Mantime Group Limited, registered number 3388707, on pages 5 to 30, were approved by the board of directors on 22 December 2010 and were signed on its behalf by
NY14,14-,4,44- W A Plant Director

7.0

International Maritime Group Limited

Group cash flow statement for the year ended 31 March 2010
Sheet5 8.0

International Maritime Group Limited Statement of accounting policies
Accounting convention These financial statements have been prepared on the going concern basis and under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom The principal accounting policies are set out below, which, with the exception of pension costs, have been applied consistently in the current and preceding year
Basis of preparation The directors recognise that whilst trading conditions have improved over the 12 months up to the date these accounts were signed, the economic environment remains challenging and this does create a degree of uncertainty in some elements of the group's likely future performance The main factor that might impact the ongoing performance is the securing of additional tonnage for its shipping activities on suitable charter terms In view of the above, the group prepared a number of alternative projections of trading performance and cash flow to March 2012 based on varying levels of fleet capacity In undertaking this process, the directors considered the financial facilities available to the group (compnsing an overdraft facility and an asset-backed currency loan), and identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements These measures include the renewal of bank facilities, the part deferral of loan repayments, and asset disposal, which have been used successfully in prior periods, if appropnate
The overdraft facility is due for renewal on 30 April 2011 and the group will open renewal negotiations with Bank of Scotland in due course and has at this stage not sought any written commitment that the facility will be renewed However, the group has held discussion with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms As per note 14, the group is in breach of the debt service covenant on its currency loan with Allied Irish Bank plc Without commitment, the bank has confirmed in wnting and in discussion that it does not intend to exercise any of its rights in relation to this breach for the foreseeable future Furthermore, discussion has been held with the bank regarding prospective future breaches of the debt service covenant and continuing with the current part-deferral of loan repayments, and no matters have been drawn to the group's attention to suggest that continuation of this agreement may not be forthcoming on acceptable terms In addition, the pension scheme to which the group is liable to fund a proportion of its deficit, the MNOPF, issued a demand in May 2010 in respect of the 2009 actuarial valuation, which outlined a number of settlement options These included an option to pay in instalments over 10 years subject to the satisfactory completion of a credit review The directors believe that once the credit review has been completed, this option will be made available to the group by the Trustees, and therefore the group will be able to meet the liability out if its current agreed facilities, for the foreseeable future In view of the foregoing, the directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts
Basis of consolidation The group profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2010 The results of subsidiaries disposed of during the year are accounted for up to the date of disposal
Turnover Turnover represents the invoiced amount of services provided, excluding value added tax, in carrying out the group's activities of ship owning and ship management Revenue is recognised as it is eamed, according to the services delivered
Leases Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term

9.0

International Maritime Group Limited

Tangible fixed assets and depreciation Tangible fixed assets are stated at histonc purchase cost less accumulated depreciation Cost includes the onginal purchase pnce of the asset and the costs attnbutable to bnnging the asset to its working condition for its intended use Depreciation is provided at the following rates calculated to write off the cost, less estimated residual value, of assets over their expected useful lives using the straight line method Ships Equally over 25 years from date of launch Ships' dry docking costs 33% - 50% Plant and machinery 25% Furniture, fittings and equipment 10% -33 3% Motor vehicles 20% - 25% Leasehold improvements Equal instalments over the unexpired lease term
The expected useful lives of the assets to the business are reassessed penodically in the light of expenence
Investments in subsidiary undertakings Investments in subsidiary undertakings in the accounts of the company are stated at cost less provision for any impairment Taxation Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date With effect from 1 Apnl 2001 a group undertaking, Stephenson Clarke Shipping Limited elected to enter the tonnage tax regime in respect of their qualifying shipping activities This election is for ten years and tax is calculated by reference to the net tonnage of qualifying vessels Deferred taxation is recognised in respect of all timing differences that have onginated but not reversed at the

Directors Report 2

Directors' report for the year ended 31 March 2009
The directors present their annual report and the consolidated audited financial statements of the group for the year ended 31 March 2009
Business review and principal activities The principal activities of the group are ship owning and ship management
The results of the group for the year are set out in the profit and loss account on page 5
Future outlook The performance of the Group during the second half of the financial year was negatively affected due to the impact of the global economic crisis on its pnncipal business, as a significant reduction in the international movement of raw materials depressed previously record high freight rates However, market conditions have improved in the 6 months prior to the signing of these accounts, and whilst conditions are expected to remain challenging, the Group will continue to seek new opportunities with a view to providing sustainable growth
Principal risks and uncertainties The key business risks that affect the group are considered to relate to ship freight pncing, foreign exchange rates, the global economic environment and funding of the defined benefit pension scheme
Financial risk management The group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk The group seeks to limit the adverse effects on financial performance by monitoring levels of debt finance and the related finance costs
During the year, a loan was taken out in respect of the purchase of a new vessel The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied
Price risk The group is not exposed to commodity price nsk as a result of its operations and has no exposure to equity securities price nsk as it holds no listed or other equity investments
Credit risk Appropriate credit checks are made on potential significant customers before sales are made Where debt finance is utilised, this is subject to pre-approval by the board of directors
Liquidity risk The group actively manages its debt finance to ensure it has sufficient available funds for operations and planned expansions
Interest rate cash flow risk The group had Interest bearing liabilities at rates that fluctuated in line with LIBOR, but these liabilities were repaid during the previous year The interest rate on the loan that part-financed the purchase of a vessel was fixed in to order to limit the exposure to fluctuating interest rates The appropriateness of the group's policy will be reviewed should its operations change in size or nature
Key performance indicators ("KPI's") Turnover for the year increased by 104% (2008 ? 1 5% decrease), and operating loss for the year, excluding the pension provision of 0,337,000, expressed as a percentage of turnover, was (1 9%) (2008 profit 8 8%)
International Maritime Group Limited
Directors' report for the year ended 31 March 2009 (continued)
Going concern The group meets its day to day working capital requirements through bank facilities which are due for renewal The company has completed renewal negotiations with the bank, and has received a wntten offer of 12 month facilities At the date of approval of the financial statements, whilst the terms have been agreed, the wording of one aspect of the offer is under discussion
The directors recognise that whilst conditions have improved over the 6 months up to the date these accounts were signed, the economic environment remains challenging and this does create a degree of uncertainty in some elements of the group's likely future performance The main factor that might impact the ongoing performance is the net freight rates achievable from its shipping activities
In view of the above, the group prepared a number of alternative projections of trading performance and cash flow to 31 May 2011 based on varying levels of freight rates In undertaking this process, the directors identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements These measures included asset disposal and the part deferral of loan repayments, both of which have been completed
In addition, the pension scheme to which the Group is liable to fund a proportion of its deficit, the MNOPF, has recently issued a demand in respect of the 2009 actuanal valuation, which has been provided in these accounts The demand outlined a number of settlement options, including an option to pay in instalments over 10 years subject to the satisfactory completion of a credit review The directors believe that once the credit review has been completed, this option will be made available to the Group by the Trustees, and therefore the Group will be able to meet the liability out if its current agreed facilities, for the foreseeable future
In view of the foregoing, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts
Directors The directors, who held office during the year and up to the date of signing the financial statements, are given below
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord lames Percy (Resigned 9 February 2009)
Interest and dividends A dividend for the year ended 31 March 2009 of ?1,278,000 (2008 ?1,278,000) has not been paid in respect of non-equity shares due to insufficient distnbutable reserves As the company has adopted FRS 25 "Financial Instruments disclosure and presentation", the financial statements recognise these dividends as an interest cost as the related shares are classified as liabilities
A currency loan taken out to finance the purchase of a vessel has been restated at the 31 March 2009 exchange rate of $1 43335, with the resulting loss of ?2,146,000 (2008 fnil) disclosed in interest payable as a loss on translation of foreign currency borrowings If valued at the exchange rate of $1 5159 on 31 March 2010, the resulting loss on translation would be reduced to ?1,710,000
The group's loss for the financial year was ?6,147,000 (2008 profit of ?1,110,000) which will be deducted from (2008 transferred to) reserves The directors do not recommend the payment of a dividend (2008 ?nil)

2.0

International Maritime Group Limited
Directors' report for the year ended 31 March 2009 (continued)
Charitable donations During the year the group made various charitable donations totalling ?1,990 (2008 ?2,723) Donations were made to various maritime and cancer research charities
Statement of directors' responsibilities The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period
In preparing those financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently, ?make judgements and estimates that are reasonable and prudent, ?state whether applicable UK accounting standards have been followed, and ?prepare the financial statements on the going concern basis unless it is inappropnate to presume that the company will continue in business
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 1985 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
Auditors and disclosure of information to auditors Each director, as at the date of this report, has confirmed that insofar as they are aware there is no relevant audit information (that is, information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985
Deloitte LLP have expressed their willingness to continue in office as auditors, and a resolution to reappoint them will be proposed at the Annual General Meeting

R K Campbell Director 3 June 2010

3.0

International Maritime Group Limited
Independent auditors' report to the members of International Maritime Group Limited
We have audited the group and parent company financial statements (the "financial statements") of International Maritime Group Limited for the year ended 31 March 2009 which compnse the group profit and loss account, the group statement of total recognised gains and losses, the group and company balance sheets, the group cash flow statement, the statement of accounting policies and the related notes I to 24 These financial statements have been prepared under the accounting policies set out therein
This report is made solely to the company's members, as a body, in accordance with section 235 of the Companies Act 1985 Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and auditors The directors' responsibilities for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors' Responsibilities
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland)
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985 We also report to you whether in our opinion information given in the directors' report is consistent with the financial statements
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors remuneration and other transactions is not disclosed We read the Directors' Report and consider the implications for our report if we become aware of any apparent misstatements within it
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements
Opinion In our opinion ?the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the group's and the parent company's affairs as at 31 March 2009 and of the group's loss for the year then ended, ?the financial statements have been properly prepared in accordance with the Companies Act 1985, and ?the information given in the directors' report is consistent with the financial statements ML t tir_ IA--C ? Deloitte LLP Chartered Accountants and Registered Auditors Newcastle upon Tyne 3 June 2010

4.0

International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2009
Sheet1 There is no difference between the (loss)/profit on ordinary activities before taxation and the retained (loss)/profit for the year stated above, and their historical cost equivalents
The group has no recognised gains and losses other than those included in the results above, and therefore no separate statement of recognised gains and losses has been presented
All activities denve from continuing operations

5.0

International Maritime Group Limited Group balance sheet as at 31 March 2009
Sheet2 The financial statements of International Maritime Group Limited, registered number 3388707, on pages 5 to 26, were approved by the board of directors on 3 June 2010 and were signed on its behalf by 1m ApmeLitt- 14 W A Plant Director

6.0

International Maritime Group Limited Company balance sheet as at 31 March 2009
Sheet3 The financial statements of International Mantime Group Limited, registered number 3388707, on pages 5 to 26, were approved by the board of directors on 3 June 2010 and were signed on its behalf by NI/Nth-A (164- W A Plant Director

7.0

International Maritime Group Limited

Group cash flow statement for the year ended 31 March 2009
Sheet4 8.0

International Maritime Group Limited Statement of accounting policies
Accounting convention These financial statements have been prepared on the going concern basis and under the histoncal cost convention and in accordance with the Companies Act 1985 and applicable accounting standards in the United Kingdom The pnncipal accounting policies which have been applied consistently throughout the year are set out below
Basis of preparation The group meets its day to day working capital requirements through bank facilities which include an overdraft that is due for renewal in Apn I 2011 The company has completed renewal negotiations with the bank, and has received a wntten offer of 12 month facilities At the date of approval of the financial statements, whilst the terms have been agreed, the wording of one aspect of the offer is under discussion
The global economic environment created very challenging market conditions for the Group from September 2008 until the latter part of 2009 creating a degree of uncertainty in some elements of the group's likely future performance The main factor that might impact the ongoing performance is the net freight rates achievable from its shipping activities
In view of the foregoing, the group prepared a number of alternative projections of trading performance and cash flow to 31 May 2011 based on varying levels of freight rates In undertaking this process, the directors identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements These measures included asset disposal and the part deferral of loan repayments, both of which have been completed
In addition, the pension scheme to which the Group is liable to fund a proportion of its deficit, the MNOPF, has recently issued a demand in respect of the 2009 actuanal valuation, which has been provided in these accounts The demand outlined a number of settlement options, Including an option to pay in instalments over 10 years subject to the satisfactory completion of a credit review The directors believe that once the credit review has been completed, this option will be made available to the Group by the Trustees, and therefore the Group will be able to meet the liability out if its current agreed facilities, for the foreseeable future
In view of the foregoing, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future For these reasons, they continue to adopt the going concern basis in prepanng the annual report and accounts
Basis of consolidation The group profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2009 The results of subsichanes disposed of dunng the year are accounted for up to the date of disposal
Turnover Turnover represents the invoiced amount of services provided, excluding value added tax, in carrying out the group's activities of ship owning and ship management
Revenue is recognised as it is earned, according to the services delivered
Tangible fixed assets and depreciation Tangible fixed assets are stated at histonc purchase cost less accumulated depreciation Cost includes the onginal purchase pnce of the asset and the costs attributable to bnnging the asset to its working condition for its intended use 9.0

International Maritime Group Limited Statement of accounting policies (continued)
Tangible fixed assets and depreciation (continued) Depreciation is provided at the following rates calculated to write off the cost, less estimated residual value, of assets over their expected useful lives using the straight line method
Ships Equally over 25 years from date of launch Ships' dry docking costs 33% - 50% Plant and machinery 25% Furniture, fittings and equipment 10% -33 3% Motor vehicles 20% - 25% Leasehold improvements Equal instalments over the unexpired lease term
The expected useful lives of the assets to the business are reassessed penodically in the light of expenence
Investments in subsidiary undertakings Investments in subsidiary undertakings in the accounts of the company are stated at cost less provision for any impairment
Taxation Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date
With effect from 1 April 2001, two group undertakings, Stephenson Clarke Shipping Limited and Caledonian Tanker Company Limited, elected to enter the tonnage tax regime in respect of their qualifying shipping activities This election is for ten years and tax is calculated by reference to the net tonnage of qualifying vessels
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the

Directors Report 3

Directors' report for the year ended 31 March 2008
The directors present their annual report and the consolidated audited financial statements of the group for the year ended 31 March 2008.
Business review and principal activities The principal activities of the group are ship owning and ship management.
The results of the group for the year are set out in the profit and loss account on page 5.
Future outlook The directors are satisfied with the progress made during the year of its principal business, which has been achieved in the backdrop of continuing high freight rates. Market conditions are expected to remain difficult, but the Group will continue to seek new opportunities with a view to providing sustainable growth.
On 9 June 2008, the vessel M.V. Newcastle was purchased for ?7.4 million. The purchase was part fmanced by a bank loan with Allied Irish Bank plc.
Principal risks and uncertainties
The key business risks that affect the group are considered to relate to ship freight pricing, foreign exchange rates, the global economic environment and funding of the defined benefit pension scheme.
Financial risk management The group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The group seeks to limit the adverse effects on financial performance by monitoring levels of debt finance and the related finance costs.
During the year the Group repaid its bank and debenture loans. After the year end, in June 2008, a loan was taken out in respect of the purchase of a new vessel. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.
Price risk The group is not exposed to commodity price risk as a result of its operations and has no exposure to equity securities price risk as it holds no listed or other equity investments.
Credit risk Appropriate credit checks are made on potential significant customers before sales are made. Where debt finance is utilised, this is subject to pre-approval by the board of directors.
Liquidity risk The group actively manages its debt finance to ensure it has sufficient available funds for operations and planned expansions.
Interest rate cash flow risk The group had interest bearing liabilities at rates that fluctuated in line with LIBOR. These liabilities were repaid during the year. The appropriateness of this policy will be reviewed should the group's operations change in size or nature.
International Maritime Group Limited
Directors' report for the year ended 31 March 2008 (continued)
Key performance indicators ("KPI's") Turnover on continuing operations for the year decreased by 1.5% (2007 ? 18.0% decrease) and operating profit on continuing operations for the year, expressed as a percentage of turnover on continuing operations, was 8.8% (2007- 6.4% excluding a pensions provision of ?1,900,000).
Going concern As highlighted in note 13 to the financial statements, the group meets its day to day working capital requirements through bank facilities which include an overdraft that is due for renewal in September 2009. The group will open renewal negotiations with the bank in due course and has at this stage not sought any written commitment that the facility will be renewed. However, the group has held discussions with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms.
The directors recognise that the current economic environment has become more challenging and this does create a degree of uncertainty in some elements of the group's likely future performance. The main factor that might impact the ongoing performance is the net freight rates achievable from its shipping activities.
In view of market conditions prevailing at the date of these accounts, the group has been preparing a number of alternate projections of trading performance and cash flow to April 2010 based on varying levels of freight rates. In undertaking this process, the directors identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements. These measures included asset disposal and the part deferral of loan repayments, both of which have been completed.
In view of the foregoing, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.
Directors The directors, who held office during the year and up to the date of signing the financial statements, are given below:
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord James Percy (Resigned 9 February 2009)
Interest and dividends A dividend for the year ended 31 March 2008 of ?1,277,920 (2007: ?1,277,920) has not been paid in respect of non-equity shares due to insufficient distributable reserves. As the company has adopted FRS 25 "Financial Instruments: disclosure and presentation", the financial statements recognise these dividends as an interest cost as the related shares are classified as liabilities.
The group's profit for the financial year was ?1,110,000 (2007: loss of ?1,682,000) which will be transferred to reserves. The directors do not recommend the payment of a dividend (2007: ail).

2.0
International Maritime Group Limited
Directors' report for the year ended 31 March 2008 (continued)
Charitable donations During the year the group made various charitable donations totalling ?2,723 (2007: ?2,301). Donations were made to various maritime and cancer research charities.
Statement of directors' responsibilities The directors are responsible for preparing the Annual Report and the fmancial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing those financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently; ?make judgements and estimates that are reasonable and prudent; ?state whether applicable UK accounting standards have been followed; and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors and disclosure of information to auditors Each director, as at the date of this report, has confirmed that insofar as they are aware there is no relevant audit information (that is, information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985.
Deloitte LLP were appointed as auditors of the company by the Directors during the year. A resolution to reappoint Deloitte LLP, as the Company's auditors will be proposed at the Annual General Meeting.
By order of the Board
Agekkit 64-
W A Plant Director 22 April 2009

3.0

International Maritime Group Limited
Independent auditors' report to the members of International Maritime Group Limited
We have audited the group and parent company financial statements (the "financial statements") of International Maritime Group Limited for the year ended 31 March 2008 which comprise the group profit and loss account, the group and company balance sheets, the group cash flow statement, the statement of accounting policies and the related notes 1 to 24. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company's members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors The directors' responsibilities for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors' Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion information given in the directors' report is consistent with the financial statements.
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and other transactions is not disclosed. We read the Directors' Report and consider the implications for our report if we become aware of any apparent misstatements within it.
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion: ?the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the group's and the parent company's affairs as at 31 March 2008 and of the group's profit and cash flows for the year then ended; ?the financial statements have been properly prepared in accordance with the Companies Act 1985; and ?the information given in the directors' report is consistent with the financial statements.
Deloitte LLP ?-bdOn 166- Chartered Accountants and Registered Auditors Newcastle upon Tyne 22 April 2009

4.0

International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2008
Sheet1 There is no difference between the profit/(loss) on ordinary activities before taxation and the retained profit/(loss) for the year stated above, and their historical cost equivalents.
The group has no recognised gains and losses other than those included in the results above, and therefore no separate statement of recognised gains and losses has been presented.

5.0

International Maritime Group Limited Group balance sheet as at 31 March 2008
Sheet2 The financial statements on pages 5 to 27 were approved by the board of directors on 22 April 2009 and were signed on its behalf by:
Num, 4 Ptaiwk
W A Plant Director

6.0

International Maritime Group Limited Company balance sheet as at 31 March 2008
Sheet3 The financial statements on pages 5 to 27 were approved by the board of directors on 22 April 2009 and were signed on its behalf by: 4404A Plahl- W A Plant Director

7.0
International Maritime Group Limited

Group cash flow statement for the year ended 31 March 2008
Sheet4 8.0

International Maritime Group Limited Statement of accounting policies
Accounting convention These financial statements have been prepared on the going concern basis and under the historical cost convention and in accordance with the Companies Act 1985 and applicable accounting standards in the United Kingdom. The principal accounting policies which have been applied consistently throughout the year are set out below.
Basis of preparation As highlighted in note 13 to the financial statements, the group meets its day to day working capital requirements through bank facilities which include an overdraft that is due for renewal in September 2009. The group will open renewal negotiations with the bank in due course and has at this stage not sought any written commitment that the facility will be renewed. However, the group has held discussions with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms.
The directors recognise that the current economic environment has become more challenging and this does create a degree of uncertainty in some elements of the group's likely future performance. The main factor that might impact the ongoing performance is the net freight rates achievable from its shipping activities.
In view of market conditions prevailing at the date of these accounts, the group has been preparing a number of alternate projections of trading performance and cash flow to April 2010 based on varying levels of freight rates. In undertaking this process, the directors identified and estimated the financial impact of a number of measures available to them that would support the group's working capital requirements. These measures included asset disposal and the part deferral of loan repayments, both of which have been completed.
In view of the foregoing, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.
Turnover Turnover represents the invoiced amount of services provided, excluding value added tax, in carrying out the group's activities of ship owning and ship management.
Revenue is recognised as it is earned, according to the services delivered.
Basis of consolidation The group profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2008. The results of subsidiaries disposed of during the year are accounted for up to the date of disposal.
Goodwill arising on consolidation represents the excess of the consideration given over the fair value of the identifiable net assets acquired.
Tangible fixed assets and depreciation Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

9.0

International Maritime Group Limited Statement of accounting policies (continued)
Tangible fixed assets and depreciation (continued)
Depreciation is provided at the following rates calculated to write off the cost, less estimated residual value, of assets over their expected useful lives using the straight line method:
Ships Equally over 25 years from date of launch Ships' dry docking costs 33% - 50% Plant and machinery 25% Furniture, fittings and equipment 10% - 33.3% Motor vehicles 20% - 25% Leasehold improvements Equal instalments over the unexpired lease term
The expected useful lives of the assets to the business are reassessed periodically in the light of experience.
Investments in subsidiary undertakings Investments in subsidiary undertakings in the accounts of the company are stated at cost less provision for any impairment.
Taxation With effect from 1 April 2001, two group undertakings, Stephenson Clarke Shipping Limited and Caledonian Tanker Company Limited, elected to enter the tonnage tax regime in respect of their qualifying shipping activities. This election is for ten years and tax is calculated by reference to the net tonnage of qualifying vessels.
Deferred taxation Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the

Directors Report 4

Directors' report for the year ended 31 March 2007
The directors present their annual report and the consolidated audited financial statements of the group for the year ended 31 March 2007
Business review and principal activities The principal activities of the group are ship owning and ship management
Implementation of the group's strategy to focus on its shipping activities continued throughout the year The winding down of trading in the subsidiary undertaking Transmarinc Limited resulted in that company entering a members' voluntary liquidation on 13 December 2006 Performance this year has been affected by recognition of a further provision in respect of the underfunded Merchant Navy Officers Pension Fund of ?1,900,000, following an actuarial valuation undertaken by the Trustees as at 31 March 2006, details of which can be found in note 14 to the accounts
The results of the group for the year are set out in the profit and loss account on page 5
Financial risk management The group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk The group seeks to limit the adverse effects on financial performance by monitoring levels of debt finance and the related finance costs
The Group debt currently attracts interest at 2% above the relevant LIBOR and at the year end, 100% (2006 62%) of debt was repayable within one year The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied
Price risk The group is not exposed to commodity price risk as a result of its operations and has no exposure to equity securities price risk as it holds no listed or other equity investments
Credit risk Appropriate credit checks are made on potential significant customers before sales are made Where debt finance is utilised, this is subject to pre-approval by the board of directors
Liquidity risk The group actively manages its debt finance to ensure it has sufficient available funds for operations and planned expansions
Interest rate cash flow risk The group has interest bearing short term liabilities at rates that fluctuate in line with LIBOR The appropriateness of this policy will be reviewed should the group's operations change in size or nature
Future outlook The directors are satisfied with the progress made during the year of its principal business, which has been achieved in the backdrop of continuing high freight rates Whilst market conditions could become less favourable during the course of the coming year, opportunities to renew tonnage will be sought with a view to providing sustainable growth
Principal risks and uncertainties The key business risks that affect the group are considered to relate to ship freight pricing, foreign exchange rates and the global economic environment i
International Maritime Group Limited
Directors' report for the year ended 31 March 2007 (continued)
Key performance indicators ("KPI's") Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business Notwithstanding the foregoing, turnover on continuing operations decreased by 18 0% (2006 ? 5 3% increase) reflecting the return of certain charter vessels during the year, where hire rates offered for renewal were considered unacceptably high Operating (loss)/profit on continuing operations for the year, excluding the pensions provision of ?1,900,000, expressed as a percentage of turnover on continuing operations, was 6 4% (2006 - 8 8%)
Going concern The directors believe that preparing the accounts on the going concern basis is appropriate as the loss for the year is stated after a provision for pensions of ?1 9mi11ion The balance sheet position is also improved if the non-equity shares and dividend arrears are eliminated Post year end all bank loans have been settled
Directors The directors, who held office during the year and up to the date of signing the financial statements, are given below
Mr B E K Gilmour Mr B 1 Corlett Mr R K Campbell Mr WA Plant Lord James Percy Mrs G Non

(Resigned 30 September 2006) Interest and dividends A dividend for the year ended 31 March 2007 of ?1,277,920 (2006 ?1,277,920) has not been paid in respect of non-equity shares due to insufficient distributable reserves As the company has adopted FRS 25 "Financial Instruments disclosure and presentation", the financial statements recognise these dividends as an interest cost as the related shares are classified as liabilities
The group's loss for the financial year was ?1,682,000 (2006 profit of ?549,000) which will be deducted from reserves The directors do not recommend the payment of a dividend (2006 fnil)
Charitable donations During the year the group made various charitable donations totalling ?2,301 (2006 ?1,490) Donations were made to various maritime and cancer research charities I
International Maritime Group Limited
Directors' report for the year ended 31 March 2007 (continued)
Statement of directors' responsibilities The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period
In preparing those financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently, ?make judgements and estimates that are reasonable and prudent, and ?state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
The directors confirm that they have complied with the above requirements in preparing the financial statements
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 1985 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
Auditors and disclosure of information to auditors Each director, as at the date of this report, has confirmed that insofar as they are aware there is no relevant audit information (that is, information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985
Independent auditors The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting
By order of the Board
NOt0.44.4. ReA4
WA Plant Director 31 January 2008

3.0

International Maritime Group Limited
Independent auditors' report to the members of International Maritime Group Limited
We have audited the group and parent company financial statements (the "financial statements") of International Maritime Group Limited for the year ended 31 March 2007 which comprise the group profit and loss account, the group and company balance sheets, the group cash flow statement, the statement of accounting policies and the related notes These financial statements have been prepared under the accounting policies set out therein Respective responsibilities of directors and auditors The directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the statement of directors' responsibilities
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland) This report, including the opinion, has been prepared for and only for the company's members as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose hands it may come save where expressly agreed by our prior consent in writing
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985 We also report to you whether in our opinion information given in the directors' report is consistent with the financial statements
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and other transactions is not disclosed We read the Directors' report and consider the implications for our report if we become aware of any apparent misstatements within it
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements It also includes an assessment of the significant estimates and Judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed We planned and performed our audit so as to obtain all the Information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements
Opinion Incur opinion ?the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the group's and the parent company's affairs as at 31 March 2007 and of the group's loss and cash flows for the year then ended, ?the financial statements have been properly prepared in accordance with the Companies Act 1985, and ?the information given in the directors' report is consistent with the financial statements

PricewaterhouseCoopers LLP Chartered Accountants and Registered Auditors Newcastle upon Tyne 31 January 2008 V
International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2007
Sheet1 There is no difference between the (loss)/profit on ordinary activities before taxation and the (loss 1 sustained)/retained profit for the year stated above, and their historical cost equivalents
The group has no recognised gains and losses other than those included in the results above, and therefore no separate statement of recognised gains and losses has been presented

5.0

International Maritime Group Limited Group balance sheet as at 31 March 2007
Sheet2 The financial statements on pages 5 to 26 were approved by the board of directors on 31 January 2008 and were signed on its behalf by
W 01 it A 4... A. hitt-E
W A Plant Director

6.0

International Maritime Group Limited Company balance sheet as at 31 March 2007
Sheet3 The financial statements on pages 5 to 26 were approved by the board of directors on 31 January 2008 and were signed on its behalf by lAI ikiAsot 019a-,E WA Plant Dtrector

7.0
International Maritime Group Limited

Group cash flow statement for the year ended 31 March 2007
Sheet4 8.0

International Maritime Group Limited Statement of accounting policies
Accounting convention These financial statements have been prepared on the going concern basis and under the historical cost convention and in accordance with the Companies Act 1985 and applicable accounting standards in the United Kingdom The principal accounting policies which have been applied consistently throughout the year are set out below
Turnover Turnover represents the invoiced amount of services provided, excluding value added tax, in carrying out the group's activities of ship owning and ship management
Turnover and associated operating costs of shipping are recognised in full at the onset of a freight movement
Basis of consolidation The group profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2007 The results of subsidiaries disposed of during the year are accounted for up to the date of disposal
Goodwill arising on consolidation represents the excess of the consideration given over the fair value of the identifiable net assets acquired
Tangible fixed assets and depreciation Tangible fixed assets are stated at historic purchase cost less accumulated depreciation Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use
Depreciation is provided at the following rates calculated to write off the cost, less estimated residual value, of assets over their expected useful lives using the straight line method
Sheet5 The expected useful lives of the assets to the business are reassessed periodically in the light of experience
Investments in subsidiary undertakings Investments in subsidiary undertakings in the accounts of the company are stated at cost less provision for any diminution in value
Taxation With effect from 1 April 2001, two group undertakings, Stephenson Clarke Shipping Limited and Caledonian Tanker Company Limited, elected to enter the tonnage tax regime in respect of their qualifying shipping activities This election is for ten years and tax is calculated by reference to the net tonnage of qualifying vessels

9.0

International Maritime Group Limited Statement of accounting policies (continued)
Deferred taxation Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the

Directors Report 5

Directors' report for the year ended 31 March 2006
The directors present their annual report and the audited financial statements of the group for the year ended 31 March 2006.
Business review and principal activities The principal activities of the group are ship owning and ship management.
Implementation of the group's strategy to focus on its shipping activities continued throughout the year. On 1 April 2005, trading in the subsidiary undertaking Transmarine Consultants Limited ceased following disposal of its assets to a third party and details of this can be seen in note 21. In addition, the winding down of trading in the subsidiary undertaking Transmarine Limited resulted in that company entering a members' voluntary liquidation on 13 December 2006. As a consequence of this decision, the results for the current year of the parent company, International Maritime Group Limited, include a provision of ?1,200,000 in respect of the overdraft of Transmarine Limited as at the date of liquidation, as this had been guaranteed by the parent company.
On 31 March 2006 an agreement was entered into with 3i Group PLC which transferred ownership of the mezzanine debt to Oceanic Investment Corporation Limited, and the 'A' Preference, 'A' Ordinary, 'A' Deferred and 'C' Deferred shares to Norham House 1062 Limited.
The results of the group for the year are set out in the profit and loss account on page 5.
Future outlook The directors are satisfied with the progress made during the period of its principal business, but anticipate slightly less favourable market conditions during the coming year.
Principal risks and uncertainties The key business risks that affect the group are considered to relate to ship freight pricing, foreign exchange rates and the global economic environment.
Key performance indicators ("KPFs") Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
Notwithstanding the foregoing, the directors are satisfied with further turnover growth on continuing operations of 5.3% (2005 as restated - 36%) given the strong growth in the comparative period. Operating profit on continuing operations for the year, expressed as a percentage of turnover on continuing operations, was 8.8% (2005 as restated - 1.9%)
Directors and their interests The directors, who held office during the year unless indicated otherwise, are given below:
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord James Percy Mrs G Nott

(Resigned 30 September 2006) International Maritime Group limited
Directors and their interests (continued) The interests of the directors who held office at 31 March 2006 are given below: As at 31 March 2006 Interest in ordinary shares and 31 March 2005
Number
Mr B E K. Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord James Percy Mrs G Nott 1296149.0 221294.0

In addition to the shareholdings noted above, the directors have indirect interests in 1,647,583 A ordinary shares (2005: Nil) by virtue of interests they hold in Norham House 1062 Limited, which in turn holds A Ordinary shares in the company.
Interest and dividends A dividend for the year ended 31 March 2006 of ?1,277,920 (2005: ?1,277,920) has not been paid in respect of non-equity shares due to insufficient distributable reserves. The company has adopted FRS 25 "Financial Instruments: disclosure and presentation" in these financial statements which has resulted in these dividends being recognised as an interest cost as the related shares have been reclassified as liabilities.
Charitable donations During the year the group made various charitable donations totalling ?1,490 (2005: ?71).
Statement of directors' responsibilities The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The directors are responsible for preparing financial statements for each financial year which give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently; ?make judgements and estimates that are reasonable and prudent; ?state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors confirm that they have complied with the above requirements in preparing the financial statements.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

2.0
International Maritime Group limited
Auditors and disclosure of information to auditors Each director, as at the date of this report, has confirmed that insofar as they are aware there is no relevant audit information (that is, information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting.
By o dec of the Boa

RK Campbell Director
2007-02-26 00:00:00 3.0

International Maritime Group limited
Independent auditors' report to the members of International Maritime Group Limited
We have audited the group and parent company financial statements (the "financial statements") of International Maritime Group Limited for the year ended 31 March 2006 which comprise the group profit and loss account, the group and company balance sheets, the group cash flow statement, the statement of accounting policies and the related notes. These financial statements have been prepared under the accounting policies set out therein. Respective responsibilities of directors and auditors The directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the statement of directors' responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). This report, including the opinion, has been prepared for and only for the company's members as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion information given in the directors' report is consistent with the financial statements.
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors remuneration and other transactions is not disclosed. We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other information comprises only the directors' report. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion: ?the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the group's and the parent company's affairs as at 31 March 2006 and of the group's profit and cash flows for the year then ended; ?the financial statements have been properly prepared in accordance with the Companies Act 1985; and iric ewaterhouseCoopers LLP rticuav ?th n irmation given in the directors' report is consistent with the financial statements. Chartered Accountants and Registered Auditors 2007-02-26 00:00:00 Newcastle upon Tyne

4.0
International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2006
Sheet1 There is no difference between the profit on ordinary activities before taxation and the retained profit for the year stated above, and their historical cost equivalents.
There are no recognised gains or losses in the year other than as shown above.

5.0
International Maritime Group Limited Group balance sheet as at 31 March 2006
Sheet2 The financial statements on pages 5 to 27 were approved by the board of directors on 26 February 2007 and were signed on its behalf by:
e(ALE
W A Plant Director

6.0

International Maritime Group Limited Company balance sheet as at 31 March 2006
Sheet3 The financial statements on pages 5 to 27 were approved by the board of directors on 26 February 2007 and were signed on its behalf by:
kifrikktiA kcikt W A Plant Director

7.0
International Maritime Group Limited

Group cash flow statement for the year ended 31 March 2006
Sheet4 8.0

International Maritime Group Limited Accounting policies
Accounting convention These financial statements have been prepared on the going concern basis and under the historical cost convention and in accordance with applicable accounting standards.
Turnover Turnover represents the invoiced amount of services provided, excluding value added tax, in carrying out the group's activities of ship owning and ship management.
Turnover and associated operating costs of shipping are recognised in full at the onset of a freight movement.
Basis of consolidation The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2006. The results of subsidiaries disposed of during the year are accounted for up to the date of disposal.
Goodwill arising on consolidation represents the excess of the consideration given over the fair value of the identifiable net assets acquired.
Depreciation Depreciation is provided at the following rates calculated to write off the cost, less estimated residual value, of assets over their expected useful lives using the straight line method:
Ships Equally over 25 years from date of launch Ships' dry docking costs 33% - 50% Plant and machinery 25% Furniture, fittings and equipment 10% - 33.3% Motor vehicles 20% - 25% Leasehold improvements Equal instalments over the unexpired lease term
Leasing and hire purchase commitments Assets held under finance lease and hire purchase contracts are capitalised in the balance sheet as tangible fixed assets and are depreciated over their useful lives.
The interest element of the rental obligation is charged to the profit and loss account over the period of the contract and represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line basis.
Investments in subsidiary undertakings Investments in subsidiary undertakings in the accounts of the company are stated at cost less provision for any diminution in value.
Taxation With effect from 1 April 2001, two group undertakings, Stephenson Clarke Shipping Limited and Caledonian Tanker Company Limited, elected to enter the tonnage tax regime in respect of their qualifying shipping activities. This election is for ten years and tax is calculated by reference to the net tonnage of qualifying vessels.

9.0
International Maritime Group Limited

Deferred taxation Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the

Directors Report 6

Directors' report for the year ended 31 March 2005
The directors present their report and the audited financial statements of the group for the year ended 31 March 2005.
Principal activities The principal activities of' the group are ship owning, ship management, and the design and manufacture of cargo access equipment.
Review of business and future prospects During the year the group implemented key elements of its strategy to focus on its shipping activities. As a result, the group's principal business has made satisfactory progress during the period and further improvement is expected during the coming year.
The results of the group for the year are set out in the profit and loss account on page 4.
Directors and their interests The directors, who held office during the year unless indicated otherwise, are given below:
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord James Percy Mrs G Nott
The interests of the directors who held office at 31 March 2005 are given below:
As at 31 March 2005 Interest in ordinary shares and 31 March 2004
Number
Mr B E K Gilmour 1,296,129
Mr B J Corlett 221,290 Mr R K Campbell Mr W A Plant Lord James Percy Mrs G Nott
Dividends Unpaid dividends appropriated during the year amounted to:
Sheet1 Charitable donations During the year the group made various charitable donations totalling ?71 (2004: ?584).
International Maritime Group Limited

Statement of directors' responsibilities Company law requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. The directors are required to prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business.
The directors confirm that suitable accounting policies have been used and applied consistently in the year. They also confirm that reasonable and prudent judgements and estimates have been made in preparing the financial statements for the year ended 31 March 2005 and that applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting.
By order of the ard
Director UK Campbell

2006-01-31 00:00:00
2.0
International Maritime Group Limited

Independent auditors' report to the members of International Maritime Group Limited
We have audited the financial statements which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the consolidated cash flow statement, the statement of Accounting policies and the related notes.
Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the annual report and the financial statements in accordance with applicable United Kingdom law and accounting standards are set out in the statement of directors' responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards issued by the Auditing Practices Board. This report, including the opinion has been prepared for and only for the company's members as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the directors' report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and transactions is not disclosed.
Basis of audit opinion
We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the company and the group at 31 March 2005 and of the loss and cash flows of the group for the year then ended and have been pro erly tp e red in accordance with the Companies Act 1985. ? 1.- PricewaterhouseCoopers L Chartered Accountants and Registered Auditors Newcastle upon Tyne 31 January 2006

3.0
International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2005
Sheet2 There is no difference between the loss on ordinary activities before taxation and the retained loss for the year stated above, and their historical cost equivalents.
There are no recognised gains or losses in the year other than as shown above.

4.0

International Maritime Group Limited Group balance sheet as at 31 March 2005
Sheet3 The financial statements on pages 4 to 26 were approved by the board of directors on 31 January 2006 and were signed on its behalf by: WtikAk4 PeAteil- W A Plant Director

5.0

International Maritime Group Limited Company balance sheet as at 31 March 2005
Sheet4 The financial statements on pages 4 to 26 were approved by the board of directors on 31 January 2006 and were signed on its behalf by:
J\vtt7tiJk. ()64

W A Plant Director

6.0
International Maritime Group Limited

Directors Report 7

Directors' report for the year ended 31 March 2004
The directors present their report and the audited financial statements of the group for the year ended 31 March 2004.
Principal activities The principal activities of the group are ship owning, ship management, and the design and manufacture of cargo access equipment.
Review of business and future prospects During the year the group implemented key elements of its strategy to focus on its shipping activities. As a result, the group's principal business has made satisfactory progress during the period and further improvement is expected during the coming year.
Part of the group's strategy was to dispose of its marine consultancy subsidiaries and this took place on 12 August 2003. Using the funds generated by this disposal, the group was able to repay ?2 million of its bank loans during the period. Further details of the transaction are contained in note 21 to the accounts.
In addition to its shipping activities the group has one other business, Transmarine Limited. With the group focusing on shipping and because of that business's trading performance, the directors considered it prudent to undertake an impairment review based on value in use of this subsidiary. As a result of that review an impairment provision has been made in the period for the full value of goodwill attributed to it.
As a consequence of the disposal and of the impairment provision noted above, total goodwill charged through the profit and loss account for the current year was ?1,869,000 (2003: ?360,000), an increase of ?1,509,000 on the previous year which represents accelerated amortisation of goodwill. Included within this charge was ?1,170,000 in respect of the disposal and ?378,000 in respect of the impairment provision. The directors consider that the underlying improvement in profit before tax after adjusting for this accelerated amortisation of goodwill is satisfactory.
The results of the group for the year are set out in the profit and loss account on page 4.
Directors and their interests The directors, who held office during the year unless indicated otherwise, are given below:
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr WA Plant Lord James Percy Mrs G Nott
International Maritime Group Limited

Directors and their interests (continued) The interests of the directors who held office at 31 March 2004 are given below:
As at 31 March 2003
Interest in ordinary shares and 31 March 2004 Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr W A Plant Lord James Percy Mrs G Non 1296129.0
221290.0

Dividends Unpaid dividends appropriated during the year amounted to:
Sheet1 Charitable donations During the year the group made various charitable donations totalling ?584 (2003: ?1,026).
Statement of directors' responsibilities Company law requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. The directors are required to prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business.
The directors confirm that suitable accounting policies have been used and applied consistently in the year. They also confirm that reasonable and prudent judgements and estimates have been made in preparing the financial statements for the year ended 31 March 2004 and that applicable accounting standards have been followed
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a res lution concerning their reappointment will be proposed at the Annual General Meeting.

By
RK Campbell Director 2005-01-31 00:00:00 2.0
International Maritime Group Limited

Independent auditors' report to the members of International Maritime Group Limited
We have audited the financial statements which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the consolidated cash flow statement, the statement of Accounting policies and the related notes.
Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the annual report and the financial statements in accordance with applicable United Kingdom law and accounting standards are set out in the statement of directors' responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards issued by the Auditing Practices Board. This report, including the opinion has been prepared for and only for the company's members as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the directors' report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and transactions is not disclosed.
Basis of audit opinion
We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion the financial statements give a true and fair view of the state of affairs of the company and the group at 31 March 2004 and the loss and cash flows of the group for the year then ended and have been t propfily prepa ed ' accordance with the Companies Act 1985.? , / 111,..?L ; ' ,-1, ?_ "1: L __ ? L LI PricewaterhouseCoopers 1,LP Chartered Accountants and Registered Auditors Newcastle upon Tyne 31 January 2005

3.0
International Maritime Group Limited

Group profit and loss account for the year ended 31 March 2004
Sheet2 There is no difference between the profit on ordinary activities before taxation and the retained loss for the year stated above, and their historical cost equivalents.
There are no recognised gains or losses in the year other than as shown above.

4.0

International Maritime Group Limited Group balance sheet as at 31 March 2004
Sheet3 5.0

International Maritime Group Limited Company balance sheet as at 31 March 2004
Sheet4 The financial statements on pages 4 to 26 were approved by the board of directors on 31 January 2005 and were signed on its behalf by:

Phi
WA Plant Director

6.0 International Maritime Group Limited

Directors Report 8

Directors' report for the year ended 31 March 2003
The directors present their report and the audited financial statements of the group for the year ended 31 March 2003.
Principal activities The principal activities of the group are ship owning, ship management, marine consultancy and the design and manufacture of cargo access equipment.
Review of business and future prospects The group's principal businesses have made satisfactory progress during the period and further improvement is expected in the coming year. The results for the year are set out in the profit and loss account on page 4.
Directors and their interests The directors, who held office during the year unless indicated otherwise, are given below:
Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr WA Plant Mr D Shuttleworth Lord James Percy Mrs G Nott

(Appointed 7 October 2002) (Appointed 5 February 2003) (Resigned 7 October 2002)
The interests of the directors who held office at 31 March 2003 are given below:
As at 31 March 2002 Interest in ordinary shares and 31 March 2003 Mr B E K Gilmour Mr B J Corlett Mr R K Campbell Mr WA Plant Lord James Percy Mrs G Non 1296129.0
221290.0

Dividends Unpaid dividends appropriated during the year amounted to:
Sheet1 Charitable donations During the year the group made various charitable donations totalling ?1,026 (2002: ?1,736).
International Maritime Group Limited

Post balance sheet event In August 2003 the group disposed of its interest in certain subsidiaries and details of this are contained in note 23 of the accounts.
Statement of directors' responsibilities Company law requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. The directors are required to prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business.
The directors confirm that suitable accounting policies have been used and applied consistently in the year. They also confirm that reasonable and prudent judgements and estimates have been made in preparing the financial statements for the year ended 31 March 2003 and that applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting.

By order of the Board

UK Campbell Director 30 April 2004

2.0
International Maritime Group Limited

Independent auditors' report to the members of International Maritime Group Limited
We have audited the financial statements which comprise the group profit and loss account, the group statement of total recognised gains and losses, the group balance sheet, the company balance sheet, the

Directors Report 9

Directors' report for the year ended 31 March 2002 1 Independent auditors' report to the members of International Maritime Group Limited 3 Group profit and loss account for the year ended 31 March 2002 4 Group statement of total recognised gains and losses 5 Group balance sheet as at 31 March 2002 6 Company balance sheet as at 31 March 2002 7

Directors Report 10

Directors' report for the year ended 31 March 2001 1 Auditors' report to the members of International Maritime Group Limited 3 Group profit and loss account for the year ended 31 March 2001 4 Group statement of total recognised gains and losses 5 Group balance sheet as at 31 March 2001 6 Company balance sheet as at 31 March 2001 7

Directors Report 11

Directors' report for the year ended 31 March 2000 1 Auditors report to the members of International Maritime Group Limited 3 Group profit and loss account for the year ended 31 March 2000 4 Group statement of total recognised gains and losses 5 Group balance sheet as at 31 March 2000 6 Company balance sheet as at 31 March 2000 7

Directors Report 12

DIRECTORS' REPORT
The directors present their report and the financial statements for the year ended 31 March 1999.
PRINCIPAL ACTIVITIES
The principal activities of the group are ship owning, ship management, marine consultancy and the design and manufacture of cargo access equipment.
REVIEW OF TRADING AND FUTURE PROSPECTS
The Group's main trading divisions have performed reasonably well during the year given the difficult market conditions they have operated in.
The longer term outlook for the Group remains optimistic and the Board believes the Group is well placed to both expand and strengthen its operations.
DIRECTORS
The directors who served during the year, unless indicated otherwise, together with their interests in the shares of the company were:
Mr B E K Gilmour Mr K Christian Mr D Shuttleworth Mr B Corlett Lord Percy Mrs G Nott Mr J F A Kirkpatrick
(Resigned 12 September 1999) (Appointed 12 September 1999)

(Appointed 2 June 1999) Interest in shares At 31 March 1999 At 31 March 1998
Mr B E K Gilmour 1,296,129 1,296,129 Mr D Shuttleworth Mr B Corlett 221,290 221,290 Lord Percy Mrs G Nott Mr J F A Kirkpatrick Mr K Christian 442,581 442,581

INTERNATIONAL MARITIME GROUP LIMITED DIRECTORS' REPORT (CONTINUED)
STATEMENT OF DIRECTORS RESPONSIBILITIES
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that year. In preparing those financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?make judgements and estimates that are reasonable and prudent;
?state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
YEAR 2000
The directors have undertaken a review of the likely impact of the year 2000 on the group's computer systems and business. Where necessary, systems have been upgraded.
DIVIDENDS
Dividends have been paid or proposed during the year amounting to:
"A" ordinary shares ?75,922 (1998 - ?84,877) "A"preference shares ?360,538 (1998 -?395,110) "B"preference shares ?202,500 (1998 -?221,917)
Unpaid dividends appropriated during the year amounted to:
"A" ordinary shares "A"preference shares "B"preference shares ?75,922 (1998 - ?Nil) ?360,538 (1998 - ?Nil) ?202,500 (1998 - ?Nil)

2.0

INTERNATIONAL MARITIME GROUP LIMITED DIRECTORS' REPORT (CONTINUED)
CHARITABLE DONATIONS
During the year, the group made various charitable donations totalling ?.1,608 (1998.. ?1,152).
h
On behalf of the Board D Shuttleworth 2000-01-27 00:00:00

3.0 AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL MARITIME GROUP LIMITED

We have audited the financial statements on pages 5 to 32 which have been prepared under the historical cost convention and the accounting policies set out on pages 10 to 13.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report. As described on page 2, this includes responsibility for preparing the financial statements in accordance with applicable United Kingdom accounting standards. Our responsibilities, as independent auditors, are established by statute, the Auditing Practices Board and our profession's ethical guidance.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act. We also report to you, if in our opinion, the directors' report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and transactions is not disclosed.
We read the other information contained in the Annual Report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.
Basis of opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group at 31 March 1999 and of the loss and cash flows of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

PricewaterhouseCoopers Chartered Accountants and Registered Auditors Newcastle upon Tyne 27 January 2000

4.0

INTERNATIONAL MARITIME GROUP LIMITED

Directors Report 13

DIRECTORS' REPORT
The directors present their report and the financial statements for the period ended 31 March 1998. The company was incorporated on 18 June 1997 as Flightgrant Limited and changed its name to International Maritime Group Limited on 11 August 1997. The company commenced trading on 13 September 1997.
PRINCIPAL ACTIVITIES
The principal activities of the group are ship owning, ship management, marine consultancy and the design and manufacture of cargo access equipment.
CHAIRMAN'S STATEMENT
In September 1997, the company, by acquisition, combined the business activities of the Anchorjade Ltd Group and the International Maritime Ltd Group.
This combination created a strategically significant force within European marine transportation which integrated the direct ship operating and broking expertise of Stephenson Clark Shipping and Alexanders Partners in the Anchorjade Ltd Group with the marine consultancy and ship to shore logistic capability of Burness Corlett & Partners and Transmarine in the International Maritime Ltd Group.
At the time of the acquisition Stephenson Clarke Shipping was contracted for two new buildings with an Indonesian yard. For reasons of late delivery, non-compliance with specification, uncertainties over performance and threats to guarantees these were subsequently cancelled. This prevented the company taking delivery of a vessel scheduled to enter commercial service in April 1998 and additionally resulted in the write-off of previously capitalised expenditure, amounting to ?1.3 million, which has been treated as an exceptional item.
Separately, the loss of a major coal contract shortly after completion of the acquisition of Anchorjade Ltd , the sudden move of Far Eastern economies into recession and the plunge in freight rate indices to a twelve year low during Spring 1998 have produced a very difficult market for the Group's shipping activities.
However, the longer term outlook for the group remains optimistic, with a clear and well documented strategy for growth. An unrivalled range of opportunities will ensure that the Group expands and strengthens in both the Shipping and Marine Technology Divisions.
The Burness Corlett and Partners Companies continues to trade and develop well and are an internationally recognised leading brand. Transmarine is also targeted for significant growth in 1999 and beyond.
Of particular importance to any organisation, and particularly the International Maritime Group where levels of professionalism and release of synergy are vital factors, are the quality and commitment of staff. In this respect it is difficult to imagine a more responsive and dedicated team. On behalf of the shareholders my thanks are extended to all staff members for their efforts in making International Maritime Group the success it is and will become in the future years.

1.0
INTERNATIONAL MARITIME GROUP LIMITED DIRECTORS' REPORT (CONTINUED)
DIRECTORS
The directors who served during the year, together with their interests in the shares of the company were:

J L Nominees One Ltd A J Davison Mr B E K Gilmour Mr K Christian Mr B Corlett Lord Percy Mrs G Nott
Interest in shares
J L Nominees One Ltd Mr A J Davison Mr B E K Gilmour Mr K Christian Mr B Corlett Lord Percy Mrs G Nott Appointed
1997-06-18 00:00:00 1997-06-18 00:00:00 1997-09-13 00:00:00 1997-09-13 00:00:00 1997-09-13 00:00:00 1997-09-13 00:00:00 1997-11-01 00:00:00
At appointment
1.0
1296129.0 442581.0 221,290 Resigned
1997-07-03 00:00:00 1997-09-13 00:00:00

At 31 March 1998

1296129.0 442581.0 221290.0
STATEMENT OF DIRECTORS RESPONSIBILITIES
Company law requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing those financial statements, the directors are required to:
? select suitable accounting policies and then apply them consistently;
? make judgements and estimates that are reasonable and prudent;
?state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

2.0

INTERNATIONAL MARITIME GROUP LIMITED DIRECTORS' REPORT (CONTINUED)
YEAR 2000
The directors have undertaken a review of the likely impact of the year 2000 on the group's computer systems and business Where necessary, appropriate work is in hand to upgrade systems.
EURO
The group is reviewing its commercial and financial processes so that its operations can do business in the Euro after it is introduced in some countries on 1 January 1999.
DIVIDENDS
Dividends have been paid during the period amounting to: Sheet1 The directors recommend the payment of any the following dividend:
"A" deferred shares ?1,674
CHARITABLE DONATIONS
During the period, the group made various charitable donations totalling ?1,152.

On behalf of the Board K Christian 1998-10-07 00:00:00

3.0

PRICEWATERHOUsECCOPERS 0
PricewaterhouseCoopers 89 Sandyford Road Newcastle upon Tyne NE99 1PL
Facsimile +44 (0) 191 261 9490 DX No 69110 Newcastle 10
AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL MARITIME GROUP LIMITED

We have audited the financial statements on pages 5 to 25 which have been prepared under the historical cost convention and the accounting policies set out on pages 9 and 10.
Respective responsibilities of directors and auditors
As described on page 2 the company's directors are responsible for the preparation of financial statements. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you.
Basis of opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 31 March 1998 and of the loss and cash flows of the group for the period then ended and have been properly prepared in accordance with the Companies Act 1985.

PricewaterhouseCoopers Chartered Accountants and Registered Auditors

1998-10-07 00:00:00 4.0
The principal place of business of PricewaterhouseCoopers and iv associate pannerships is 1 Embankment Place, London WC2N 6NN where lists of the gunners names are available for inspection. All panners in the associate partnerships are authorised to conduct business as agents of, and all contracts for services to clients are with, PricewaterhouseCoopers. PricewaterhouseCoopers is authorised by the Institute of Chartered Accountants in England and Wales to carry on investment business. PricewaterhouseCoopers is a member of PricewaterhouseCoopers International Limited, a company limited by guarantee registered in England and Wales.
INTERNATIONAL MARITIME GROUP LIMITED