Directors Report 1

Directors' report for the year ended 31 March 2013
The directors present their report and the financial statements for the year ended 31 March 2013 Directors' I esponsibilities statement
The directors are responsible for preparing the Directors' 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 preparing these financial statements, the directors are required to ?select suitable accounting policies and then apply them consistently, ?make judgments and accounting estimates that are reasonable and prudent, ?state whether applicable UK 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 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
Principal activities
The principal activities of the company during the year were forestry and the operation of a sawmill
Directors
'I he directors who served during the year were
The Duke of Northumberland R C St J Wilson 1 R Brearley
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that ?so far as that director is aware, there is no relevant audit information of which the company's auditors are unaware, and ?that director has taken all the steps that ought to have been taken as a director in order to be aware of any information needed by the company's auditors in connection with preparing their report and to establish that the company's auditors are aware of that information

1.0 Hotspur Forestry Limited

Directors' report for the year ended 31 March 2013

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006
Going concern
The directors have considered the company's current and future prospects and its availability of financing from its ultimate group undertaking and are satisfied that the company can continue to pay its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements For this reason, the directors continue to adopt the going concern basis of preparation for these financial statements
This report was approved by the board and signed on its behalf
Date

?or
J. R. Brearley Director
2.0 Hotspur Forestry Limited

Independent auditors' report to the shareholders of Hotspur Forestry Limited

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31 March 2013, which comprise the Profit and loss account, the Statement of total recognised gains and losses, the Balance sheet and the related notes 1 to 16 The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities)
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 Statement of directors' responsibilities, set out in page I, 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 and express an opinion on 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 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 appropriate 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 In addition, we read all the financial and non- financial information in the Report and Financial Statements to identify material inconsistencies with the audited financial statements If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
Opinion on financial statements
In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 March 2013 and of its profit for the year then ended, ?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities, 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

3.0
Hotspur Forestry Limited

Independent auditors' report to the shareholders of Hotspur Forestry Limited

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, or ?the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' report

Caroline Mulley (Senior Statutory Auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor Newcastle Upon Tyne Date n

4.0 Hotspur Forestry Limited

Directors Report 2

Directors' report for the year ended 31 March 2010
The directors present their report and financial statements for the year ended 31 March 2010
The directors are responsible for preparing the annual report and the financial statements in

Company law requires the directors to prepare financial statements for each financial year
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 these 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, subject to any

?prepare the financial statements on the going concern basis unless it is inappropriate to

The directors are responsible for keeping proper accounting records that are sufficient to show
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
Principal activities The pnncipal activities of the company during the year were forestry and the operation of a

Directors The directors who served during the year were The Duke of Northumberland R C St J Wilson J R Brearley
Provision of information to auditors Each of the persons who are directors al the time when this Directors' report is approved has

Oso far as that director is aware, there is no relevant audit information of which the

Othat director has taken all the steps that ought to have been taken as a director in order
preparing their report and to establish that the company's auditors are aware of that information

1.0
Hotspur Forestry Limited

Directors' report for the year ended 31 March 2010

Small company exemptions In preparing this report, the directors have taken advantage of the small companies exemptions
on ikiDeCaTleea-a016 and signed on its behalf

J R Brearley Secretary

2.0
How"' 1.0 El ERNST &YOUNG M111111111111111111111111 Independent auditors' report to the shareholders of Hotspur Forestry Limited

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31 March 2010 which comprise the Profit and Loss Account, the Statement of Total Recognised Gains and Losses, the Balance Sheet and the related notes 1 to 14 The financial reporting framework that has been applied in their preparation is applicable law and the Financial reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities)
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 Auditor's 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 set out on page 1, 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 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 appropriate 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 the financial statements In our opinion the financial statements
?give a true and fair view of the state of the company's affairs as at 31 March 2010 and of its

?have been properly prepared in accordance with United Kingdom Generally Accepted
?have been prepared in accordance with the requirements of 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

3.0

itti... 111111111111111W Et. ERNST &YOUNG

Independent auditors' report to the shareholders of Hotspur Forestry Limited

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

?adequate accounting records have not been kept, or returns adequate for our audit have

?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, or
?the directors were not entitled to prepare the financial statements and the Directors' report

aEl Caroline Mulley (Senior Statutory Auditor) For and on behalf of Ernst & Young LLP (Statutory Auditor) Newcastle upon Tyne
2010-12-22 00:00:00

4.0
Hotspur Forestry Limited

Directors Report 3

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2009

The directors present their report and the financial statements for the year ended 31st March 2009.
Principal activity The principal activities of the company during the year were forestry and the operation of a sawmill.
Directors The directors who served during the year are as stated below:
His Grace the Duke of Northumberland Mr RC St.] Wilson Mr JR Brearley
Directors' responsibilities The directors are responsible for preparing 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 the affairs of the company and of the profit or loss of the company for that year. In preparing these financial statements the directors are required to:
- select suitable accounting policies and 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 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.
Statement of disclosure of information to auditors In so far as the directors are aware: - there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and - the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditors In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Begbies Chettle Agar be reappointed as auditors of the company will be put to the Annual General Meeting.

Page I
HOTSPUR FORESTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2009

Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.
This report was approved by the Board on ? el and signed on its behalf by
-31MC 1.-crC Mr J R Brea Secretary

Page 2
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2009 which comprise the profit and loss account, the balance sheet and the related notes. These financial statements have been prepared under the accounting policies set out therein and the requirements of the Financial Reporting Standard for Smaller Entities (effective January 2007).
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and the 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 the 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 flee 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.
We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standard - Provisions Available for Small Entities. In common with many other entities of this size we assist with the preparation of the financial statements and prepare and submit returns to the tax authorities.

Page 3
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

Opinion In our opinion:
the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice applicable for Smaller Entities, of the state of the company's affairs as at 31st March 2009 and of its profit 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.
Page 4

Lt.>. (A-?eztte, A Begb Chettle Agar Chartered Accountants and Registered Auditors
1_3 f 2-0oct

Epworth House
London EC1Y 1AR Company No. 3446164 HOTSPUR FORESTRY LIMITED

Directors Report 4

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2008

The directors present their report and the financial statements for the year ended 31st March 2008.
Principal activity The principal activities of the company during the year were forestry and the operation of a sawmill.
Directors The directors who served during the year are as stated below:
His Grace the Duke of Northumberland Mr RC St.J Wilson Mr JR Brearley (Appointed 3/12/07)
Directors' responsibilities The directors are responsible for preparing 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 the affairs of the company and of the profit or loss of the company for that year. In preparing these financial statements the directors are required to:
- select suitable accounting policies and 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 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.
Statement of disclosure of information to auditors In so far as the directors are aware: - there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and - the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditors In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Begbies Chettle Agar be reappointed as auditors of the company will be put to the Annual General Meeting.

Page I
HOTSPUR FORESTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2008

Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.
This report was approved by the Board on . - 1 ? acl and signed on its behalf by Page 2

--sters(._c
Mr J R Brear Secretary
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2008 which comprise the profit and loss account, the balance sheet and the related notes. These financial statements have been prepared under the accounting policies set out therein and the requirements of the Financial Reporting Standard for Smaller Entities (effective January 2007).
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and the 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 the 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.
We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standard - Provisions Available for Small Entities. In common with many other entities of this size we assist with the preparation of the financial statements and prepare and submit returns to the tax authorities.

Page 3

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

Opinion In our opinion:
the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice applicable for Smaller Entities, of the state of the company's affairs as at 31st March 2008 and of its profit 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.

t-Lk 0,tb'bt-C?acv- Begbies Chettle Agar Chartered Accountants and Registered Auditors
231112ool

Epworth House 25 City Road London EC1Y 1AR
Page 4
HOTSPUR FORESTRY LIMITED

Directors Report 5

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2007

The directors present their report and the financial statements for the year ended 31st March 2007
Principal activity The principal activities of the company dunng the year were forestry and the operation of a sawmill
Directors The directors who served dunng the year are as stated below
His Grace the Duke of Northumberland Mr RC St J Wilson
Directors' responsibilities The directors are responsible for preparing 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 the affairs of the company and of the profit or loss of the company for that year In preparing these financial statements the directors are required to - select suitable accounting policies and 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 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 irregulanties
The directors of a company must, in determining how amounts are presented within items in the profit and loss account and balance sheet, have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting pnnciples and practice
Statement of disclosure of information to auditors In so far as the directors are aware - there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and - the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information
Auditors In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Begbies Chettle Agar be reappointed as auditors of the company will be put to the Annual General Meeting

Page I
HOTSPUR FORESTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2007

Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies
This report was approved by the Board on 1-1-12. -01 and signed on its behalf by

' clx-seec
) Mr J R Brear Secretary Page 2

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2007 which comprise the profit and loss account, the balance sheet and the related notes These financial statements have been prepared under the accounting policies set out therein and the requirements of the Financial Reporting Standard for Smaller Entities (effective January 2005)
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed
Respective responsibilities of directors and the 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 the 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 appropnate 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 matenal misstatement, whether caused by fraud or other irregulanty or error In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements
We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standard - Provisions Available for Small Entities In common with many other entities of this size we assist with the preparation of the financial statements and prepare and submit returns to the tax authorities

Page 3
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
HOTSPUR FORESTRY LIMITED

Opinion In our opinion
- the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice applicable for Smaller Entities, of the state of the company's affairs as at 31st March 2007 and of its profit 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

Emphasis of matter - going concern The company's continued operation is dependant upon the continued support of the company's creditors The accounts have been prepared on a going concern basis which assumes that such support will continue Our opinion is not qualified in this respect

"i It to? Epworth House 25 City Road London EC1Y 1AR Ct-liek
Begbies Chettle Agar Chartered Accountants and Registered Auditors
Page 4
HOTSPUR FORESTRY LIMITED

Directors Report 6

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2006

The directors present their report and the financial statements for the year ended 31st March 2006.
Principal activity The principal activities of the company during the year were forestry and the operation of a sawmill.
Directors and their interests The directors who served during the year are as stated below:
His Grace the Duke of Northumberland Mr RC StJ Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Directors' responsibilities The directors are responsible for preparing their annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the company and of the profit or loss of the company for that year. In preparing these the directors are required to: - select suitable accounting policies and 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. - have regard to the substance of the reported transaction or arrangement when determining how amounts are to be presented in the financial statements, in accordance with generally accepted accounting principles or practice.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the fmancial 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.
Statement of disclosure of information to auditors The directors of the company who held office at the date of approval of this report as set out above each confirm that: - so far as they are aware, there is no relevent audit information (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 directors in order to make themselves aware of any relevent audit information and to establish that the company's auditors are aware of that information.
Auditors In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Begbies Chetde Agar be reappointed as auditors of the company will be put to the Annual General Meeting.

Page]
HOTSPUR FORESTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2006

Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.
1 Z. - 1 0 -1 This report was app ved by the Board on - and signed on its behalf by .3.67g 0....erf Mr J R Bre ley Secretary

Page 2
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2006 which comprise the profit and loss account, the Balance Sheet and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2005), under the historical cost convention and 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 the directors and auditors As described in the statement of directors' responsibilities, the company's directors are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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, are properly prepared in accordance with the Companies Act 1985 and whether the information given in the directors' report is consistent with the financial statements. We also report to you 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 with the company 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 Intemational 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.
We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standard - Provisions Available for Small Entities. In common with many other businesses of this size and nature we prepare and submit returns to the tax authorities and assist with the preparation of the fmancial statements.

Page 3
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
HOTSPUR FORESTRY LIMITED

Fundamental uncertainty The company's continued operation is dependent upon the continued support of the company's creditors. The accounts have been prepared on a going concern basis which assumes that such support will continue. Our opinion is not qualified in this respect.
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 company's affairs as at 31st March 2006 and of its loss for the year then ended and have been properly prepared in accordance with the Companies Act 1985. The information given in the directors' report is consistent with the financial statements.

Ckatub A Begbies Chettle Agar Chartered Accountants and Registered Auditors Epworth House 25 City Road London EC1Y 1AR

Page 4
HOTSPUR FORESTRY LIMITED

Directors Report 7

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2005

The directors present their report and the financial statements for the year ended 3 I st March 2005.
Principal activity The principal activities of the company during the year were forestry and the operation of a sawmill.
Directors and their interests The directors who served during the year and their interests in the company are as stated below:
His Grace the Duke of Northumberland Mr RC St.J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
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 the affairs of the company and of the profit or loss of the company for that year. In preparing these the directors are required to: - select suitable accounting policies and 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 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.
Auditors In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Begbies Everett Chettle be reappointed as auditors olthe company will be put to the Annual General Meeting.
Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.
,21a 47e. This report was approved by the Board on and signed on its behalf by ???

Mr K Coulson Secretary

Page I
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2005 which comprise the profit and loss account, the balance sheet, the statement of total recognised gains and losses and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002), under the historical cost convention and the accounting policies set out therein.
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors As described in the statement of directors' responsibilities the company's directors are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.
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 with the company 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 United Kingdom 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 the company's affairs as at 31st March 2005 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

CLi2last
Begbies Everett Chettle Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC I V 6I-17 u

Page 2
HOTSPUR FORESTRY LIMITED

Directors Report 8

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2004

The directors present their report and the financial statements for the year ended 31st March 2004.
Principal activity The principal activities of the company during the year were forestry and the operation of a sawmill. During the year the stock of standing timber was capitalised and written down to a base cost valuation of ?2.5 million. The loss now recognised, together with provisions made in the previous year have been accounted for as prior year adjustments.
Directors and their interests The directors who served during the year are as stated below:
His Grace the Duke of Northumberland Mr RC Sti Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
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 the affairs of the company and of the profit or loss of the company for that year. In preparing these the directors are required to: Select suitable accounting policies and 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.
Small company exemptions This report is prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies. This report was approved by the Board on 1:2)- - PAD < and signed on its behalf by

Mr K Coulson Secretary
Page 1
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2004 which comprise the profit and loss account, the balance sheet, the statement of total recognised gains and losses and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002), under the historical cost convention and the accounting policies set out therein.
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors' responsibilities the company's directors are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.
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 with the company 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 United Kingdom 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.

Page 2
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
HOTSPUR FORESTRY LIMITED

Opinion
In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31st March 2004 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985. (IA,t-jA BeglSies Everett Chettle Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC I V 6HZ

Page 3
HOTSPUR FORESTRY LIMITED

Directors Report 9

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2003
The directors present their report and the audited accounts for the company for the year ended 31st March 2003. Principal activities
The company's principal activities during the year were forestry and the operation of a sawmill. During the year the stock of growing timber was devalued to reflect adverse market conditions.
Directors and their interests
The directors who held office during the year are given below:
His Grace the Duke of Northumberland Mr R C St. J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Statement of directors' responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss for that year. In preparing those accounts 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 accounts;
Prepare the accounts 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 fmancial position of the company and enable them to ensure that the accounts 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.
Small company exemptions
This report has been prepared in accordance with the special provisions relating to small companies within part VII of the Companies Act 1985. By order of the Board ot. 4swts-, Mr K Coulson Company secretary Date: fat ? 9 0.1

Page: I

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2003 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002), under the historical cost convention and the accounting policies set out therein.
This report is made soley 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 auditor's 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'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 described in the Statement of Directors' Responsibilities the company's directors are responsible for the preparation of financial statements in accordance with applicable law and United Kingdom Accounting Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. 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 with the company is not disclosed. We read the Directors' Report and consider the implications for our report if we become aware of any apparent misstatement within it. Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board, except that the scope of our work was limited as explained below.
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 accounts, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned our audit so as to obtain all 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. However, the evidence available to us to enable us to verify the recoverability of the opening and closing growing timber valuations were limited. In forming our opinion we also evaluated the overall adequacy of the presentation of the information in the financial statements. Qualified opinion arising from limitation in audit scope
Except for any adjustments that might have been found to be necessary had we been able to obtain sufficent evidence concerning the valuations of the opening and closing stocks of growing timber, in our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31st March 2003 and of its loss for the year then ended and have been properly prepared in accordance with the Companies Act 1985.
In respect alone of the timber stock valuations, we have not obtained all the evidence that we considered necessary for the purpose of our audit and we were unable to satisfy ourselves as to the recoverability of book values. ,
Begbie,s Everett Chettle Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC I V 6HZ ?J: > Date: 1A-,
Page: 2
HOTSPUR FORESTRY LIMITED

Directors Report 10

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2002

The directors present their report and the audited accounts for the company for the year ended 31st March 2002.
Principal activities
The company's principal activities during the year were forestry and the operation of a sawmill.
Directors and their interests
The directors who held office during the year are given below:
His Grace the Duke of Northumberland Mr R C St. J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Statement of directors' responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss for that year. In preparing those accounts 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 accounts;
Prepare the accounts 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 enable them to ensure that the accounts 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.
Small company exemptions
This report has been prepared in accordance with the special provisions relating to small companies within part VII of the Companies Act 1985.
By order of the Board

Mr K Coulson Company secretary Date: ? ??? ? efri-

Page: 1

- INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the financial statements of Hotspur Forestry Limited for the year ended 31st March 2002 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective March 2000), under the historical cost convention and the accounting policies set out therein.
This report is made soley 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 auditor's 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'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 described in the Statement of Directors' Responsibilities the company's directors are responsible for the preparation of financial statements in accordance with applicable law and United Kingdom Accounting Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. 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 with the company is not disclosed.
We read the Directors' Report and consider the implications for our report if we become aware of any apparent misstatement within it.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board, except that the scope of our work was limited as explained below.
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 accounts, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned our audit so as to obtain all 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. However, the evidence available to us to enable us to verify the recoverability of the growing timber valuation was limited.

In forming our opinion we also evaluated the overall adequacy of the presentation of the information in the financial statements.
Qualified opinion arising from limitation in audit scope
Except for any adjustments that might have been found to be necessary had we been able to obtain sufficent evidence concerning the valuation of the stock of growing timber, in our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31st March 2002 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985.
In respect alone of the timber stock valuation, we have not obtained all the evidence that we considered necessary for the purpose of our audit and we were unable to satisfy ourselves as to the recoverability of book values. CA?s-e*S2-Q Begbies Everett Chettle Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC 1 V 6HZ Date: LC -C)>

Page: 2
HOTSPUR FORESTRY LIMITED

Directors Report 11

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2001

The directors present their report and the audited accounts for the company for the year ended 31st March 2001.
Principal activities
The company's principal activities during the year were forestry and the operation of a sawmill.
Directors and their interests
The directors who held office during the year are given below:
His Grace the Duke of Northumberland Mr R C St. J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Statement of directors' responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss for that year. In preparing those accounts 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 accounts;
Prepare the accounts 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 enable them to ensure that the accounts 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.

Page: I
HOTSPLR F6RESTRY LIMITED
DIRECTORS REPORT
FOR THE YEAR ENDED 31ST MARCH 2001

Small company exemptions
This report has been prepared in accordance with the special provisions relating to small companies within part VII of the Companies Act 1985.
By order of the Board

Mr K Coulson Company secretary
Date: // A 4).64 ?

Page: 2
AUDITORS' REPORT TO THE
SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the accounts on pages 4 to 9 which have been prepared in accordance with the financial Reporting Standard for Smaller Entities (effective March 2000), under the historical cost convention and the accounting policies set out on page 6.
Respective responsibilities of directors and auditors
As described on page 2 the company's directors are responsible for the preparation of the accounts. It is our responsibility to form an independent opinion, based on our audit, on those accounts and 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 accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, 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 information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts 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 the information in the accounts.
Opinion
In our opinion the accounts give a true and fair view of the state of the company's affairs as at 31st March 2001 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

Beg les Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC1V 6HZ
Date: Z- I - 2er

Page: 3
HOTSPER FORESTRY LIMITED

Directors Report 12

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 2000

The directors present their report and the audited accounts for the company for the year ended 31st March 2000.
Principal activities
The company's principal activities during the year were forestry and the operation of a sawmill.
Directors and their interests
The directors who held office during the year are given below:
His Grace the Duke of Northumberland Mr R C St. J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. The Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Statement of directors' responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss for that year. In preparing those accounts 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 accounts;
Prepare the accounts 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 enable them to ensure that the accounts 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.
Small company exemptions
This report has been prepared in accordance with the special provisions relating to small companies within part VII of the Companies Act 1985.
By order of the Board

Mr K Coulson Company secretary
Date: 4

Page: 1
AUDITORS' REPORT TO THE
SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the accounts on pages 3 to 8 which have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective March 2000), under the historical cost convention and the accounting policies set out on page 5.
Respective responsibilities of directors and auditors
As described on page I the company's directors are responsible for the preparation of the accounts. It is our responsibility to form an independent opinion, based on our audit, on those accounts and 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 accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, 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 information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts 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 the information in the accounts.
Opinion
In our opinion the accounts give a true and fair view of the state of the company's affairs as at 31st March 2000 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

Begbies Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC I V 6HZ
Date: k- _

Pao. 2
HOTSPUR FORESTRY LIMITED

Directors Report 13

DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST MARCH 1999
The directors present their report together with the audited accounts for the year ended 31st March 1999.
Principal activities The company's principal activities are those of forestry and the operation of a sawmill. Directors
The directors who served during the year and their beneficial interests in the company's issued share capital were: Ordinary shares each 1999 1998
His Grace the Duke of Northumberland Mr R C St.J Wilson
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. His Grace the Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Directors' responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of the company's affairs and of the profit or loss for that year. In preparing these accounts 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 accounts 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 enable them to ensure that the accounts 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 A resolution to reappoint Begbies Chartered Accountants as auditors will be put to the members at the Annual General Meeting. Small company exemptions
The report of the directors' has been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 and was approved, and signed on its behalf

Mr K Coulson Company secretary

Page:
AUDITORS' REPORT TO THE
SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the accounts on pages 3 to 8 which have been prepared under the historical cost convention and the accounting policies set out on page 5.
Respective responsibilities of directors and auditors
As described on page 1 the company's directors are responsible for the preparation of the accounts. It is our responsibility to form an independent opinion, based on our audit, on those accounts and 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 accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, 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 information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts are free front 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 the information in the accounts.
Opinion
In our opinion the accounts give a true and fair view of the state of the company's affairs as at 31st March 1999 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

Begbies Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC1V 6HZ
at;

Page: 2
HOTSPUR FORESTRY LIMITED

Directors Report 14

DIRECTORS' REPORT
FOR THE PERIOD ENDED 31ST MARCH 1998
The directors present their report together with the audited accounts for the period ended 31st March 1998.
Principal activities and review of business Incorporated on 7th October 1997 as Investgreen Limited and on 18th December 1997 the name was changed to Hotspur Forestry Limited. The company's principal activity is that of forestry. The directors do not recommend a dividend.
Directors The directors who served during the period and their beneficial interests in the company's issued share capital were: Ordinary shares ?1 each 1998 1997
His Grace the Duke of Northumberland (appointed 30.1.98) Mr R C St.J Wilson (appointed 30.1.98) Mr C P Walsh (resigned 30.1.98) Mr D H Smyth (resigned 30.1.98)
The whole of the share capital is held by the Trustees of the Tenth Duke of Northumberland's 1972 Settlement. His Grace the Duke of Northumberland has a non beneficial interest in the whole of the share capital of the company.
Political and charitable contributions The company made no political or charitable contributions during the period.
Directors' responsibilities Company law requires the directors to prepare accounts for each financial period which give a true and fair view of the state of the company's affairs and of the profit or loss for that period. In preparing these accounts the directors are reOuired to:
Select suitable accounting policies and then apply them consistently; Make judgements and estimates that are reasonable and prudent; Prepare the accounts 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 enable them to ensure that the accounts 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 A resolution to reappoint Begbies Chartered Accountants as auditors will be put to the members at the Annual General Meeting.
This report was approved, and signed on its behalf.

Mr K Coulson Company secretary Date: tett gie
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AUDITORS' REPORT TO THE
SHAREHOLDERS OF HOTSPUR FORESTRY LIMITED

We have audited the accounts on pages 3 to 8 which have been prepared under the historical cost convention and the accounting policies set out on page 5.
Respective responsibilities of directors and auditors
As described on page 1 the company's directors are responsible for the preparation of the accounts It is our responsibility to form an independent opinion, based on our audit, on those accounts and 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 accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, 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 information and explanations which we considered nececcary in order to provide us with sufficient evidence to give reasonable assurance that the accounts 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 the information in the accounts.
Opinion
In our opinion the accounts give a true and fair view of the state of the company's affairs as at 31st March 1998 and of its profit for the period then ended and have been properly prepared in accordance with the Companies Act 1985.

reelc Lacy Begbies Chartered Accountants and Registered Auditors Cromwell House Fulwood Place London WC1V 6HZ ble?eaujoesi. 1. 6492

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HOTSPUR FORESTRY LIMITED