114 B.V.
Annual Report for the
Year Ended March 31, 1983
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TABLE OF CONTENTS Page
I DIRECTOR'S REPORT 2
2 CROUP BALANCE SHEET AT MARCH 31, 1985 3
3 CROUP STATMIE14T OF INCOME FOR THE YEAR 1984/1985 4
4GROUP STATEMENT OF SOURCE AND APPLICATION OF FUNDS FOR THE
YEAR L984/1985 5
5 NOTES To GROUP FINANCIAL STATEMENTS FOR THE YEAR 1984/1985 6-8
6 STATUTORY BALANCE SHEET AT MARCH 31, 1985 9
7 STATUTORY STATEMENT OF INCOME FOR TOE YEAR 1984/1985 10
8NOTES TO THE STATUTORY FINANCIAL STATEI(ENTS FOR THE YEAR
1984/1985 11
SUPPLEMNTARY INFORMATION
- AUDITORS' OPINION 12
- APPROPRIATION OF PROFIT 13
- SUBSEQUENT' EVENTS 13
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IMASCO B.V.
I DIRECTOR'S REPORT
The year has been a very successful one for the company.
Loans in the United States and funds available for Investment increased
by some Df 1. 546,000,000 which represents an increase of 105% over the
year.
Additional loans were made during the year to Hardee's rood Systems, Inc.
and new loans were made to Peoples Drug Stores, Inc.; while Tinder Box
lat. Ltd. repaid Its loan in the last zonth of the year.
Funds for these new and additional loans came from nev capital and from
the company's own earnings.
As a consequence of increased loans and of higher Interest rates earnings
have increased by 129% a not inconsiderable achievement.
Your Board continues to have confidence in the work done by the Fribourg
Branch, in the future of the company and In the potential for making
further successful loans in the United States. Although interest rates
have dropped it is anticipated that the company will continue to grow
in the year ahead and that loans and earnings will increase, although
not necessarily at the same rate which has been experienced during the
past year.
Your Board does not recumend that there should be a gis:ribucion of
earnings.
M.G. Glexos
Di ret. tor
Amsterdam, April LS, 1985
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IMASCO B.V.
2 GROUP BALANCE SHEET AT MARCH 31, 1985 (before appropriation of profit)
NOTES March 31, 1985 March 31,1984
FIXED ASSETS:
TANGIBLE FIXED ASSETS
Office equipment Dfl. 21,475 Dfl. 2,933
LONG TERM INVESTMENTS:
Loans to group companies 3 Dfl. 1,062,998,659 417,584,536
ACCOUNTS RECEIVABLE:
Loans to group companies 0 99,314,000
Prepayments and accrued income 139,256 417,571
139,256 99,731,571
CASH IN BANKS 388,352 122,305,871
CURRENT LIABILITIES:
Income tax payable 6,370,274 5,462,431
Accruals 452,336 71.006
TOTAL 6,822,610 5,533,437
NET ASSETS V.PLOYED Df 1. 1,056,725,132 Of 1. 634,091.474
LOAN FROM PARENT COMPANY Dfl. 0 Dfl. 16,663,601
FOREIGN CURRENCY TRANSLATION
RESERVE 3 182,597,496 49,245.2-89
SHAREHOLDERS' EQUITY: 4
Capital stock 17,667,000 1,004.000
Contributed surplus 408.238,050 233,709,250
Retained earnings 333,474,334 68,429,145
Profit for the year 114,748,252 265,043.189
874,127,636 568.187.584
TOTAL Df 1. 1,056,725,f32 Dfl. 634,091,474
See notes to the group financial statements
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IMASCO B -V 1
3 GROUP STATEMENT OF INCOME FOR THE YEAR 198411985
NOTES 1984/1985 1983/1 84
EAL14INGS:
Interest income 7 Dfl. 116,080,508 Dfl. 53,344,984
Exchange gain 8,297,766 419,534
Other income 97,130 420,579
Dfle 124,475.404 54,185,097
EXPENSES:
Salaries and other remunerations Dfl. 1,362,514 Dfl. 454,538
Travelling and business expenses 218,364 147.433
Professional fees 155,371 84.094
Office expenses 110,100 59,340
management fee 57,064 87,572
Other 49,687 6.693
Dfl. 1,953,100 Dfl. 839,670
CAPITAL TAX Dfl. 1,908,770 Dfl. 0
OPERATING PROFIT BEFORE INCOME
TAX Dfl. 120,613,534 53,345,427
INCOME TAX 6 5,865.282 4,355,631
NET OPERATING PROFIT Dfl. 1149748,252 41,989,795
EXTUIORDINARY ITEM:
Before income tax 0 216,055,393
Income tax 0 0
EXTRAORDINARY ITEM, NET OF TAX 0 216,055,393
NET PROFIT Dfl. 114,748,252 Dfl. 265,045,189
See notes to group financial statements
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IMASCO B.V.
4GROUP STATEMST OF SOURCE AND APPLICATION OF FUNDS
FOR THE YEAR 1984/L995
1984/1985 1983/1984
SOURCE OF FUNDS:
Profit for the year Dfl. 114,748,252 Dfl. 265,045,189
Increase in capital stock 16,663,000 0
Increase in contributed surplus 174,528,800 0
Decrease in investments 0 98,607
Increase in foreign currency translation
reserve 133,357,207 22,824,067
0
Dfl. 439,297,259 Dfl. 287,967 863
APPLICATION OF FUNDS:
Redemption of loan parent company 16,663,601 0
Increase in fixed assets 18,542 178
Increase in loans receivable 645,414,123 71,577,205
Decrease deferred income 0 20,641
662,096,266 71,598,024
(DECREAS7) / INCRZASE IN WORKING CAPITAL Dfl.(222,799,007) Dfl. 216,369,839
CHANCES IN WORKING CAPITAL:
(Decrease) increase in current assets (221,509,834) 220,635,936
(Decrease) increase La current
liabilities 1,289,173 4,266,097
(DECREASE)/INCREASE IN VZORKING CAPITAL (222,799,007) Dfl. 2161369,839
See notes to group financial statements
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IMASCO B V.
5 NOTES TO GROUP FINANCIAL STATEMENTS FOR THE YEAR 1984/1985
1 GENERAL
The company is incorporated as a finance-holding company in Amsterdam
and is a wholly-owned subsidiary of Imasco Limited, Montreal, Canada.
The 1984/1985 financial statements have been adapted to the requirements
of the Bill adopting the EC Fourth Directive. Due to the nature of the
Company some deviations are made from the pro forms statement of income.
The comparative figures over 1983 have been reclassified if necessary.
For the statutory statement of income use has been made of article 402
of Chapter 8 of Book 2 Dutch Civil Code.
2 SUIMARY OF SI GN IF MUM ACCOUNTING POLICIES
Basis of accounting - The financial statements are prepared an the
historical cost basis of accounting.
Basis of group financial statements - The group financial statements
comprise the accounts of Imasco B.V. at Amsterdam and the branch in
Fribourg, and the accounts of the 100% owned subsidiary Imasco N.V.,
Curagao. Transactions, receivables and liabilities between the head
office, the branch and the 1002 subsidiary have been eliminated in the
accounts.
Tangible fixed assets - Tangible fixed assets are stated at cost, less
accumulated depreciation. The tangible fixed assets are depreciated over
their estimated useful lives using the straight-line method.
Foreign exchange - Transactions in foreign currencies are converted
into Dutch florins at the approximate rates ruling on the dates of the
transactions. Assets and liabilities denominated in foreign currencies
are translated into Dutch florins using exchange rates prevailing at
balance sheet date.
Except for the translation gains an loans to group companies which
are accumulated in a foreign currency translation reserve (note 3),
exchange differences are carried to the statement of income.
i
Other - Unless otherwise indicated all other assets and liabilities
are stated at the nominal amounts at which they were acquired or In-
curred.
3 LOANS TO GROUP COMPANIES
Tle loans are denominated in US dollars and translated at the
rate prevailing at balance sheet date into Dutch guilders.
A foreign currency translation reserve has been. created to accumulate
unrealized exchange gains - The company channels -as funds to other
companies within the I=asco group. The loans expire between 1986 and 1993.
For repayment of Df 1. 183,240,160 (U.S.$ 51,946,183) guarantees have
been given bF other group companies.
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4 SHAREHOLDERS' EQUITY
Capital stock
The capital stock consists Of 1,001 common shares, 3 non cumulative pre-
forred shares 5% series A and 16,663 non cumulative preferred shares
5% series B, all of Dfl. 1,000 each.
During the year 1984/1985 following movement took place:
Balance March 31, 1984 Dfl. 1,004,000
Add: Issue of 16,663 non cumulative preferred
shares 5Z series B of Dfl. 1,000 each 16,663,000
Balance 'larch 31, 1985 Dfl. 17,667,000
Contributed surplus
Balance March 31, 1984 Dfl. 233,709,250
Add: Increases during the year - 174,528,800
Balance March 31, 1985 Df 1. 408.238.050
The contributed surplus can be repaid fro* of tax.
Retained earnings
Balance March 31, 1984 Dfl. 68,429,145
Add: Net profit 1983/1984 - -- 265,045,189
Balance March 31, 1985 Df 1. 333,474,334
5 EXTRAORDINARY ITL4
An investment in Imasco Holdings Inc. has been sold in the year
1983/1984.
The result on this transaction, being the difference between the
transaction price and the carrying value, has been presented as a
extraordinary item.
6 INCOME TAX
The company has entered into an agreement (ending after March 31, 1989)
with the Dutch fiscal authorities in which 90% of fiscal income of the
branch in Fribourg in subject to tax In Switzerland and the remaining
102 in the Netherlands. Income tax has been provider for on an accrual
basis.
7 INTEREST INCOME
Interest income relates to interest received from group companies.
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8 E14PLOYEES
On an average basis 5 employees were employed in 1984/1985. Following
amounts were paid as remuneration:
1983/1984 1983/1984
Salaries Df 1. 592,141 Dfl - 391,198
Social security charges 65,444 47,340
Pension expense 673,411 0
Df 1. 1,330,996 Dfl. 438,538
9 REMUNERATION DIRECTORS
The Supervisory Board consists of 2 members who received a remuneration
of in total of Dfl. 16,000 (1983/1984 Dfl. 16,000). The managing direc-
tors received a remuneration of In total Dfl. 856.391 (1983/1984:
Dfl. 16,000).
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IMASCO B.V.
6 STATUTORY BALANCE SHEET AT MARCH 31, 1985 (before appropriation of profit)
March 31, 1985 March 31. 1985
FIXED ASSETS:
TANGIBLE FIXED ASSETS
Office equipment Dfl. 21,475 Df 1. 2,933
LONG TERM WEST,4EVrS:
Loans to group companies 1,062,998,659 Dfl. 417,584.536
Investment in Imasco N.V. 6,907) 2.004
1,062,991,752 417,586,540
ACCOUNTS RECEIVABLE:
Loans to group companies 71.182 99,372,944
Prepayments and accrued income 135,728 413,189
206,910 99,786,133
CASH IN BANKS 278,502 122,210,325
CURRENT LIABILITIES:
Income tax payable 6,326.864 5,426,485
Accruals 446,643 67,972
Dfl. 62773,507 Dfl. 5,494,457
NET ASSETS MLOYED Dfl. 1,056,725,132 Dfl. 634,091,474
LOAN FROM PARENT COMPANY Dfl. 0 Dfl. 16,663,601
FOREIGN CURRENCY TRANSLATON RESERVE 182,597,496 49,240,289
SHAREHOLDERS' EQUITY:
Capital stock 17,667,000 t,004,000
Contributed surplus 408,238,050 233,709,250
Retained earnings 333,474,334 69,429,145
Profit for the year 114,748.222 265,045,189
874,127.06 568,187,584
TOTAL Dfl. 1,056 ,725,132 Dfl. 634,091 L474
See notes to statutory financial statements
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BAT Industries document for Province of British Columbia 13 April 1999

IMASCO B.V.
7 STATUTORY STATEMENT OF INCOME FOR THE YEAR L983/1984
1984/1985 1983/1984
Decrease in equity value subsidiary Dfl. ( 8,911) Df 1. ( 12,594)
Other income and expenses 114,757.163 265,057,783
Dfl. 114 ,748,252 Dfl. 265,045,189
See notes to statutory financial statements.
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BAT Industries document for Province of British Columbia 13 April 1999

IWCD B -V -
8 NOTES TO STATUTORY FINANCIAL STATEMENTS FOR THE YEAR 1984/1985
The notes to the group financial statements also refer to the
statutory financial statements with the following exception:
The 10OZ investment in Imasco N.V. In stated at equity value.
The movements in this value are as follows:
1984/1985 1983/1984
Equity value beginning of year Dfl. 2,004 Dfl. 13,661
Loss for the year $1911) 12,594)
Exchange difference 0 937
Equity value end of year Dfl. 6,907) Dfl. 2,004
It has been decided to liquidate Imasco N.V. &a of June 30, 1984, which
process was not yet finished as of March 31, 1985.
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Deloifte
Haskins-Sells Nededand
Fizeat.svaat 2
PO r:x4200
1009,!2 Amsterdam
Teler---e 020 - 93 26 50
TeieN
Facs r- ;t 020-935601
AUDITORS' OPINION
To the management oi
Imasco B.V.
We have examined the financial statements including the group
f inancial statmatnts, of Imasco B.V. for the year ended March 31, 1985-.
These financial statements have been prepared on the historical cost
basis of accounting and in accordance with generally accepted accoun-
ting principles in the Netherlands.
In our opinion, based upon our examination, th* accompanying financial
statements present fairly the financial position at March 31, 1985 and
the results and the source and application of funds for the year then
ended.
S & SELLS NEDERLAND
an
Registeraccountants
April 18, 1985
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BAT Industries document for Province of British Columbia 13 April 1999

SUPPLEMENTARY INFORMATION
APPROPRIATION OF PROFIT
According to article 15 of the articles of association prof its can be
appropriated as follows:
1. The company's profit shall be at the disposal of the general meeting.
2. If and insofar as it shall be resolved to pay out a dividend, the
preferred shares shall have a preference on the dividend to be distri-
buted up to a dividend of five percent. The then remaining balance of
the profit to be distributed, shall be paid out to the shareholders of
the common shares in proportion to their common shareholding. The dis-
tribution on the preferred shares may never exceed the five percent
dividend, unless article 21 subsection 3 is applicable.
3. If and insofar as there are profits in the company, the Managing Board
Is entitled, by virtue of a resolution of the general meeting, to pay
out an interim dividend, on account of the dividend to be expected over
the financial year concerned.
In anticipation of the general meeting of Shareholders it is proposed to
add the 1984/1985 profit to retained earnings.
SUBSEQUENT EVENTS
After balance sheet date US$ 25,000,000 were received from the parent
company, which amount was added to the contributed surplus and lent to
companies within the Imseco Group.
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BAT Industries document for Province of British Columbia 13 April 1999