| Total interest | 149,461 | 191,291 | - | - | - | | |
| rate sensitivity | | | | | | | |
| gap | | | | | | | |
+--------------------+---------+---------+---------+---------+---------+--------------+---------+
No fair value interest rate sensitivity analysis has been provided as no
financial assets or liabilities are subject to fair value interest rate risk. If
interest rates have been 1% higher/lower for the year, interest receivable would
have been US$44,000 higher/lower.
Credit risk
Credit risk is the risk that counterparty to a financial instrument will fail to
discharge an obligation or commitment that it has entered into with the Group.
The carrying amounts of financial assets best represent the maximum credit risk
exposure at the balance sheet date. This relates also to financial assets
carried at amortised cost, as they have a short term maturity.
At the reporting date, the Group's financial assets exposed to credit risk
amounted to the following:
+--------------------------------------------------------+--------------+-------------+
| | 30 June 2009 | 30 June |
| | | 2008 |
+--------------------------------------------------------+--------------+-------------+
| | US$'000 | US$'000 |
+--------------------------------------------------------+--------------+-------------+
| Financial assets at fair value through profit or loss | 146,722 | 55,000 |
+--------------------------------------------------------+--------------+-------------+
| Trade and other receivables | 121 | 315 |
+--------------------------------------------------------+--------------+-------------+
| Cash and cash equivalents | 167,957 | 340,752 |
+--------------------------------------------------------+--------------+-------------+
| | 314,800 | 396,067 |
+--------------------------------------------------------+--------------+-------------+
The maximum exposure to credit risk is represented by the carrying amount of
each financial asset in the balance sheet. Management does not expect any
counterparty to fail to meet its obligations. No impairment provisions had been
made as at the year end and no debtors were past their due date.
Cash balances are held with P-1* financial institutions.
*- A Moody's rating of Prime-1 (P-1) means that the issuer has a superior
ability to repay short-term debt for the obligations.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial
obligations as they fall due. The Group's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they fall due, under both normal and stressed conditions,
without incurring unacceptable losses. The Group's liquidity position is
monitored by the Asset Advisor and the Board of Directors.
Residual undiscounted contractual maturities of financial liabilities:
+---------------------------+----------+---------+----------+---------+---------+----------+
| 30 June 2009 | Less | 1-3 | 3 months | 1-5 | Over 5 | No |
| | than | months | to 1 | years | years | stated |
| | 1 month | | year | | | maturity |
+---------------------------+----------+---------+----------+---------+---------+----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------------------+----------+---------+----------+---------+---------+----------+
| Financial liabilities | | | | | | |
+---------------------------+----------+---------+----------+---------+---------+----------+
| Trade and other payables | 844 | - | - | - | - | - |
+---------------------------+----------+---------+----------+---------+---------+----------+
| | 844 | - | - | - | - | - |
+---------------------------+----------+---------+----------+---------+---------+----------+
+---------------------------+----------+---------+----------+---------+---------+----------+
| 30 June 2008 | Less | 1-3 | 3 months | 1-5 | Over 5 | No |
| | than | months | to 1 | years | years | stated |
| | 1 month | | year | | | maturity |
+---------------------------+----------+---------+----------+---------+---------+----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------------------+----------+---------+----------+---------+---------+----------+
| Financial liabilities | | | | | | |
+---------------------------+----------+---------+----------+---------+---------+----------+
| Trade and other payables | 2,342 | - | - | - | - | - |
+---------------------------+----------+---------+----------+---------+---------+----------+
| | 2,342 | - | - | - | - | - |
+---------------------------+----------+---------+----------+---------+---------+----------+
Fair values
All assets and liabilities at 30 June 2009 are considered to be stated at fair
value.
18 Capital Commitments
As at 30 June 2009 capital commitments in respect of investments were as
follows:
+------------+------------+------------+------------+
| Investment | Initial | Drawn | Remaining |
| | commitment | down | commitment |
+------------+------------+------------+------------+
| | US$'000 | US$'000 | US$'000 |
+------------+------------+------------+------------+
| | | | |
+------------+------------+------------+------------+
| Vital | 50,000 | (6,226) | 43,774 |
| Renewable | | | |
| Energy, | | | |
| LLC | | | |
+------------+------------+------------+------------+
| Multitrade | 21,593 | (16,500) | 5,093 |
| Rabun Gap, | | | |
| LLC | | | |
+------------+------------+------------+------------+
| Multitrade | 12,150 | (10,167) | 1,983 |
| Telogia, | | | |
| LLC | | | |
+------------+------------+------------+------------+
| Energía | 20,900 | (6,155) | 14,745 |
| Escalona | | | |
| SV | | | |
+------------+------------+------------+------------+
| | 104,643 | (39,048) | 65,595 |
+------------+------------+------------+------------+
19 Comparatives
The comparatives are for the period from 14 May 2007 (date of incorporation) to
30 June 2008.
20 Exchange Rates
The following exchange rates were used to translate assets and liabilities into
the reporting currency at 30 June 2009:
GBP Sterling to US$ 1.6469 (2008: 1.9902)
21 Post Balance Sheet Events
Greenline Industries, Inc. filed for US bankruptcy protection on 7 August 2009
in the Northern District of California (Santa Rosa). As a result the bankruptcy
filing, the Company wrote down its Greenline Industries investment to nil.
On 26 August 2009, the Company has extended $600,000 in interim funding to
MaxWest Environmental Systems in the form of a convertible promissory note.
Portfolio valuation methodology
Investments are measured at the Directors' estimate of fair value at the
reporting date, in accordance with IAS 39 'Financial Instruments: Recognition
and measurement'. Fair value is the amount for which an asset could be exchanged
between knowledgeable, willing parties in an arm's length transaction.
Unquoted investments
Unquoted investments are valued by applying an appropriate valuation technique,
which makes maximum use of market-based information, is consistent with models
generally used by market participants and is applied consistently from period to
period, except where a change would result in a better estimation of fair value.
The Company primarily invests in unquoted direct investments.
Unquoted direct investments
Unquoted direct investments have characteristics similar to private equity
investments, in that the value is generally crystallised through the sale or
flotation of the entire business, rather than the sale of an individual
instrument. Valuations of such investments are based upon the "International
Private Equity and Venture Capital Valuation Guidelines," using the following
model:
* Determine the enterprise value using an appropriate valuation methodology and
adjust for surplus assets, excess or unrecorded liabilities and other relevant
factors.
* Deduct any financial instruments ranking ahead of the highest ranking instrument
held by the company.
* Apply a marketability discount where appropriate to give the net attributable
enterprise value. Such a marketability discount relates to the investment rather
than the underlying business and reflects the compensation that willing buyers
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