REG - Trinity Capital - Annual Financial Report <Origin Href="QuoteRef">HCM.L</Origin> <Origin Href="QuoteRef">TRC.L</Origin> - Part 2
06/09/2014 22:28
- Part 2: For the preceding part double click ID:nRSc5403Na
measurements of the
Group's assets and liabilities.
2.2. Basis of Consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries and
subsidiary undertakings). Control is achieved where the Company has power over
an investee, exposure or rights to variable returns and the ability to exert
power to affect those returns.
The results of subsidiaries acquired or disposed of during the year are
included in the consolidated Statement of Comprehensive Income from the
effective date of acquisition or up to the effective date of disposal, as
appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the Group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
2.3. Segment reporting
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that
are subject to risks and returns that are different from those of segments
operating in other economic environments.
The Directors are of the opinion that the Group is engaged in a single segment
of business being property investment business in one geographical area being
India.
2.4. Revenue recognition
Revenue includes interest receivable, dividend income and fair value gains and
losses. Interest receivable is accrued on a time basis by reference to the
principal outstanding and the effective interest rate applicable.
Fair value gains and losses are recognised in the period of revaluation.
Dividend income from investments is recognised when the Company's right to
receive payment has been established, normally the ex-dividend date.
2.5. Expenses
All expenses are accounted for on an accruals basis and are presented as
revenue items except for expenses that are incidental to the sale of an
investment which are deducted from the disposal proceeds.
2.6. Taxation
Income tax expense comprises current and deferred tax. Current tax and
deferred tax are recognised in profit or loss except to the extent that it
relates to a business combination, or items recognised directly in equity or
in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or
loss for the year, using tax rates enacted or substantively enacted at the
reporting date, and any adjustment to tax payable in respect of previous
years. Current tax payable also includes any tax liability arising from the
declaration of dividends.
Deferred tax is recognised in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. Deferred tax is not recognised
for:
· temporary differences on the initial recognition of assets or
liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable
profit or loss;
· temporary differences related to investments in subsidiaries and
jointly controlled entities to
the extent that it is probable that they will not reverse in the foreseeable
future; and
· taxable temporary differences arising on the initial recognition of
goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and liabilities will
be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and
deductible temporary differences, to the extent that it is probable that
future taxable profits will be available against which they can be utilised.
Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax benefit will be
realised.
2.7. Foreign currency transactions
(a) Functional and presentation currency
Items included in the financial statements of each of the Group's entities are
measured using
the currency of the primary economic environment in which the entity operates
('the functional currency'). The consolidated financial statements are
presented in Sterling, which is the Company's functional and presentation
currency.
(b) Transactions and balances
Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at exchange rates at the dates of the
transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated to the functional currency at
the exchange rate at that date. The foreign currency gain or loss on monetary
items is the difference between amortised cost in the functional currency at
the beginning of the year, adjusted for effective interest and payments during
the year, and the amortised cost in foreign currency translated at the
exchange rate at the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are
measured at fair value are translated to the functional currency at the
exchange rate at the date that the fair value was determined. Non-monetary
items in a foreign currency that are measured in terms of historical cost are
translated using the exchange rate at the date of the transaction. Foreign
currency differences arising on translation are recognised in profit or loss,
except for differences arising on the translation of available-for-sale equity
investments, a financial liability designated as a hedge of the net investment
in a foreign operation that is effective, or qualifying cash flow hedges,
which are recognised in other comprehensive income.
(c) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on acquisition, are translated to Sterling at
exchange rates at the reporting date. The income and expenses of foreign
operations are translated to Sterling at exchange rates at the dates of the
transactions.
Foreign currency differences are recognised in other comprehensive income, and
presented in the foreign currency translation reserve (translation reserve) in
equity. However, if the operation is a non-wholly-owned subsidiary, then the
relevant proportionate share of the translation difference is allocated to the
non-controlling interests. When a foreign operation is disposed of such that
control, significant influence or joint control is lost, the cumulative amount
in the translation reserve related to that foreign operation is reclassified
to profit or loss as part of the gain or loss on disposal. When the Group
disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the relevant proportion of the cumulative
amount is reattributed to non-controlling interests. When the Group disposes
of only part of its investment in an associate or joint venture that includes
a foreign operation while retaining significant influence or joint control,
the relevant proportion of the cumulative amount is reclassified to profit or
loss.
When the settlement of a monetary item receivable from or payable to a foreign
operation is neither planned nor likely in the foreseeable future, foreign
exchange gains and losses arising from such a monetary item are considered to
form part of a net investment in a foreign operation and are recognised in
other comprehensive income, and presented in the translation reserve in
equity.
2.8. Financial instruments
Financial assets and financial liabilities are recognised when a Group entity
becomes a party to the contractual provisions of a financial instrument.
Financial assets and financial liabilities are offset if there is a legally
enforceable right to set off the recognised amounts and interests and it is
intended to settle on a net basis.
Investments of the Group where the Group does not have control are designated
as at fair value through profit or loss on initial recognition. They are
measured at fair value. Unrealised gains and losses arising from revaluation
are recognised in profit or loss.
Investments in entities over which the Group has control are consolidated in
accordance with IAS 27.
The fair value of unquoted securities is estimated by the Directors using the
most appropriate valuation technique for each investment.
Securities quoted or traded on a recognised stock exchange or other regulated
market are valued by reference to the last available bid price.
2.9. Provisions
A provision is recognised in the statement of financial position when the
Group has a present legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits will be
required to settle the obligation, and the obligation can be reliably
measured. If the effect is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks
specific to the liability.
2.10. Standards and interpretations not yet effective
A number of new standards, amendments to standards and interpretation are not
yet effective for year ended 31 March 2014, and have not been applied in
preparing these financial statements. None of these are expected to have a
significant effect on the measurement of the amounts recognized on the
Company's financial statements; however, IFRS 9, Financial Instruments
("IFRS9") may change the classification of financial assets.
A first effective date for IFRS 9 is yet to be announced. See note 2.1(a)
regarding the Amendments to IFRS10, Investment Entities, which are first
effective for periods commencing on or after 1 January 2014.
There are no other standards, interpretations or amendments to existing
standards that are not yet effective that would be expected to have a
significant impact on the Company.
3. Critical accounting estimates and assumptions
These disclosures supplement the commentary on financial risk management (see
note 19).
Key sources of estimation uncertainty
Determining fair values
The determination of fair values for financial assets for which there are no
observable market prices requires the use of valuation techniques as described
in accounting policy note 2.8. For financial instruments that trade
infrequently and have little price transparency, fair value is less objective,
and requires varying degrees of judgement depending on liquidity,
concentration, uncertainty of market factors, pricing assumptions and other
risks affection the specific instrument. See also "Valuation of financial
instruments" below.
Critical judgements in applying the Company's accounting policies
Critical judgements made in applying the Company's accounting policies
include:
Valuation of financial instruments
The Company's accounting policy on fair value measurements is discussed in
accounting policy note 2.8. The Company measures fair value using the
following hierarchy that reflects the significant of inputs used in making the
measurements:
· Level 1: Quoted market price (unadjusted) in an active market for and
identical instrument.
· Level 2: Valuation techniques based on observable inputs, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). This
category included instruments valued using: quoted market prices in active
markets for similar instruments: quoted market prices for identical or similar
instruments in markets that are considered less than active; or other
valuation techniques where all significant inputs are directly or indirectly
observable from market data.
· Level 3: Valuation techniques using significant unobservable inputs.
This category includes all instruments where the valuation technique includes
inputs not based on observable data and the unobservable inputs have a
significant effect on the instrument's valuation. This category includes
instruments that are valued based on quoted prices for similar instruments
where significant unobservable adjustments or assumptions are required to
reflect differences between the instruments.
Fair values of financial assets and financial liabilities that are traded in
active markets are based on quoted market prices or dealer price quotations.
All the Company's investments measured at fair value have been valued on the
basis of Level 3 described above except for SKIL Infrastructure Limited which
is based on quoted market prices and therefore classified as level 1. A
reconciliation from the beginning balances to the ending balances for Level 3
investments is as follows:
Level 3 Investments
£'000
Beginning balance 50,817
Reclassification to Level 1 (4,724)
Fair value movement 12,766
Disposal proceeds (13,775)
Realised loss on disposal (24,130)
Ending balance 20,954
Financial instruments not measured at fair value
The carrying value of short-term financial assets and financial liabilities
(cash, debtors and creditors) approximate their fair value.
Estimated future legal fees
As described in note 17, the Company is engaged in litigation. A provision has
been made for the associated legal costs, but this amount cannot be calculated
with any certainty. The actual amount may differ significantly, and will
depend on the duration and complexity of the litigation, and the success or
otherwise in reaching settlement with the other parties.
4. Investment management fees and performance fees
With effect from 1 February 2013, the annual investment management fee payable
to Indiareit Investment Management Company ("Indiareit") reduced from US$1.69
million to US$198,000. Performance fees payable ranged from 5 per cent. to 10
per cent. of net realisation proceeds. The Investment Management Agreement
expired on 31 December 2013. Indiareit continues to provide investment
management services to the Company with performance fees being negotiated on
an ad hoc basis. In carrying out the valuation of Investments at Fair Value
(note 10), the Directors have estimated the performance fees which might be
negotiated upon the disposal of individual investments.
The movements of the performance fee charge in the Statement of Comprehensive
Income are made up as follows:
2014 2013
£'000 £'000
Decrease in provision based on valuation of investments 985 2,189
Performance fee payable on disposals in year (460) -
Cancellation of performance fee liability - 1,225
Net credit in the year 525 3,414
5. Other administration fees and expenses
2014 2013
£'000 £'000
Administration fees 170 165
Audit fees 65 64
Directors' fees 302 335
Insurance 41 38
Legal fees 64 41
NOMAD & Broker 42 42
Valuations fees 63 125
Other professional costs 61 59
Other costs 148 110
956 979
6. Taxation
There is no liability for income tax in the Isle of Man.
The Group is subject to income tax in Mauritius at the rate of 15% on the
chargeable income of Mauritian subsidiaries. The Mauritius subsidiaries are,
however, entitled to a tax credit equivalent to the higher of the foreign tax
paid and a deemed credit of 80% of the Mauritian tax on their foreign source
income. No provision has been made in the financial statements due to the
availability of tax losses.
7. (Loss)/earnings per share
Basic (loss)/ earnings per share is calculated by dividing the net earnings
attributable to equity shareholders of the parent by the weighted average
number of ordinary shares outstanding during the year.
2014 2013
(Loss)/earnings attributable to equity shareholders of the parent (£'000) (9,541) 505
Weighted average number of ordinary shares (thousands) 210,682 210,682
for the purposes of basic earnings per share
Basic (loss)/earnings per share (pence) (4.5) p 0.2 p
There is no difference between fully diluted earnings per share and basic
earnings per share.
8. Distributions
The Company made a distribution of 5 pence per share on 6 September 2013,
amounting in total to £10.5 million (2013: 10.5 million).
9. Investments in subsidiaries
The Company has the following subsidiaries incorporated in Mauritius. They are
recorded at cost in the financial statements of the Company.
Name Proportion of ownership interest
At 31 March 2014 At 31 March 2013
Trinity Capital Mauritius Limited 100% 100%
Trinity Capital (One) Limited 67% 67%
Trinity Capital (Four) Limited 100% 100%
Trinity Capital (Five) Limited 59% 59%
Trinity Capital (Seventeen) Limited 100% 100%
In addition to above, the Company has an interest in the following entities:
(a) Uppals IT Projects Private Limited: Trinity Capital (One) Limited held
100% of the total equity share capital at 31 March 2014.
(b) Jodhana Developers Private Limited: Trinity Capital (Seventeen) Limited
held over 98% of the total equity share capital but only 48.48% of the voting
rights and 49% of the economic interest at 31 March 2014.
The financial statements of the subsidiaries in India are not consolidated in
these financial statements, as they do not meet all the criteria for
consolidation as required by IAS 27.
10. Investments - designated at fair value through profit or loss
The Group holds full or partial ownership interests in a number of unquoted
Indian companies. CB Richard Ellis ("CBRE") conducted an independent valuation
(acting as external valuers) of the development properties owned by three of
these companies as at 31 March 2014. Based on CBRE's valuation of the
development properties, which were carried out in accordance with the
valuation guidelines of The Royal Institution of Chartered Surveyors, the
Directors valued the Group's interest in the equity interests held in each of
the Indian companies. CBRE also carried out certain Agreed Upon Procedures to
test these computations of the fair value of Group's interest.
The Directors' valuations are based (where appropriate) on a discounted cash
flow methodology. The methodology uses the cash-flow data generated by CBRE
(which in turn is partially based on company-generated cash flows) and
observable market data on interest rates and equity returns. The discount
rates used for valuing equity securities are determined based on historic
equity returns for other entities operating in the same industry for which
market returns are observable. The Board uses models to adjust the observed
equity returns to reflect the actual debt/equity financing structure of the
investment. The discount rate applied varies from project to project to take
account of the estimated risk and ranges between 22.1% and 26%.
The valuation of the investment in Uppals IT Project Pvt. Ltd has been
prepared on the assumption that relevant lease extensions will be obtained
from the local government development authority. The Board believes that such
extensions will be forthcoming (and the valuation of the investment has been
prepared on this basis) but there is no guarantee that this will take place.
If such extensions were not obtained then the value of the land held would be
materially lower.
For the remaining two investments, different methods of valuations were used.
The value of the investment DB (BKC) Realtors Private Limited (MK Malls) is
based on the discounted nominal value of the compulsorily convertible
preference shares (excluding interest). The valuation of SKIL Infrastructure
Limited is based on the closing share price on the Bombay Stock Exchange.
With the exception of the investment in SKIL Infrastructure Ltd. the
investments are in projects for which there is very little or no market
comparable information. Consequently the valuations are dependent on
assumptions which are the subject of judgement, and a large range of possible
valuations can be deduced. Due to the inherent uncertainty associated with the
determination of the valuations, the amount realised on disposal may differ
materially from the carrying amount in the financial statements. The impact of
such uncertainty cannot be quantified
Investments are recorded at fair value are as follows:
2014
£'000
Beginning of period 50,817
Fair value adjustment (9,607)
Disposals - fair value at beginning of period (15,745)
End of period 25,465
The fair value movement on investments shown in the income statement of
£12,553,000 is made up of the fair value adjustment of £9,607,000, less the
£22,160,000 reversal of previous unrealised write-downs of the investment in
Luxor Cyber City, and which form part of the realised loss of £24,130,000
shown in note 13.
£5,946,000 of the fair value adjustment is due to the depreciation of the
Indian Rupee against Sterling, and £3,661,000 is due to the reduction on
investments values measured in Indian Rupees.
IFRS 13, Fair Value Measurement requires disclosure, by class of financial
instruments, if the effect of changing one or more inputs to reasonably
possible alternative assumptions would result in a significant change to the
fair value measurement. The information used in determination of the fair
value of Level 3 investment is chosen with reference to the specific
underlying circumstances and position of the investee company. On that basis,
the Board believe that the impact of changing one or more of the inputs to
reasonably possible alternative assumptions would not change the fair value
significantly.
Fair value hierarchy of investments
The financial assets measured at fair value are valued using a fair value
hierarchy as described in Note 3.
11. Share capital
The authorised share capital at 31 March 2014 and 31 March 2013 and the issued
and fully paid share capital at the same dates were as follows:
Authorised Issued and fully paid
No. of Shares £ No. of Shares £
Ordinary shares of 1 pence each 416,750,000 4,167,500 210,432,498 2,104,325
Deferred shares of 1 pence each 250,000 2,500 250,000 2,500
417,000,000 4,170,000 210,682,498 2,106,825
The Deferred Shares rank pari passu with the Ordinary Shares save that the
Deferred Shares have no right to dividends or voting rights or the right to
receive notice of or attend any general meeting. On the return of capital in a
winding-up of the Company or otherwise (other than re-purchases or redemptions
of shares authorised by special resolution), the Deferred Shares have the
right to return of par value paid up thereon in priority to the return of the
par value paid up on the Ordinary Shares.
Group capital comprises share capital and reserves.
Neither the Company nor any of its subsidiaries are subject to externally
imposed capital requirements.
12. Directors' remuneration
Details of Directors' remuneration during the year are as follows:
Martin Adams Pradeep Verma Stephen Coe John Chapman 2014Total 2013Total
£'000 £'000 £'000 £'000 £'000 £'000
Fixed fees 45 30 41 49 165 198
Payments under incentive plan 79 29 - 29 137 137
124 59 41 78 302 335
The Directors' Incentive Plan ("DIP") was approved by Shareholders on 29
November 2012, and provides for payments to Martin Adams, Pradeep Verma and
John Chapman amounting, in aggregate to 1.3% of amounts distributed to
shareholders. With effect from 1 September 2013, the remuneration and
nomination committee amended the rates to each of the Directors benefitting
from the DIP with each of their consents.
13. Disposals of investments
Realised loss on disposal of investments is as follows:
1 April 2013 to 31 March 2014 Luxor Cyber City (TC14)
£'000
Net proceeds 13,775
Cost (37,905)
Realised loss on disposal of investments (24,130)
1 April 2012 to 31 March 2013 DB Realty (TC11)
£'000
Net proceeds 12,003
Cost (26,383)
Realised loss on disposal of investments (14,380)
14. Net asset value (NAV)
The NAV per share is calculated by dividing the net assets attributable to the
equity holders of the Company at the end of the year by the number of shares
in issue as at 31 March 2014.
2014 2013
Net assets (£'000) 28,136 48,199
Number of shares in issue (note 11) 210,682,498 210,682,498
NAV per share (pence) 13.4 22.9
15. Cash and cash equivalents
2014 2013 2014 2013
Group Group Company Company
£'000 £'000 £'000 £'000
Cash held with banks 1,423 3,985 1,213 2,700
Money market funds 6,190 6,181 6,190 6,181
7,613 10,166 7,403 8,881
16. Provision for future legal costs
The Company is engaged in a dispute, as described in note 17, with Immobilien
Development Indien I GmbH & Co. KG ("Immobilien I") and Immobilien Development
Indien II GmbH & Co. KG ("Immobilien II"), being limited partnerships
incorporated in Germany, both sponsored by SachsenFonds Holding GmbH. A
provision was established in March 2012 for the amount of the estimated legal
costs yet to be incurred in the litigation. A provision of £2 million is
retained for the estimate of future legal costs associated with the dispute.
The provision is as follows:
2014 2013
£'000 £'000
Total 2,000 2,000
There can of course be no certainty as to the accuracy of these provisions.
The actual amount may differ significantly, and will depend on the duration
and complexity of the litigation, and the success or otherwise in reaching
settlement with the other parties.
17. Contingent Liabilities
On 12 January 2011 the Company received a notification of claim from
Immobilien I and Immobilien II. In addition to the Company, the notification
was addressed to TCML, Trikona Advisers Ltd. ("TAL", the former investment
adviser of the Company,) private persons who together controlled TAL, and TSF
Advisers Mauritius Limited (a joint venture between TAL and SachsenFonds Asset
Management GmbH). On 13 July 2011, the Supreme Court in Mauritius set aside
the claim lodged by Immobilien I and Immobilien II. Immobilien I and
Immobilien II appealed against that decision on 26 July 2011.
By way of background, in November 2007 and May 2008 Immobilien I and
Immobilien II purchased from TCML interests in various Mauritian companies
(the "TC Companies") which in turn owned equity stakes in Indian investment
vehicles (the "Indian Companies") which held certain of the Company's
development projects in India (the "Transactions"). Accordingly, Immobilien I
and/or Immobilien II were partners with TCML in various Mauritian companies in
respect of five development projects in India. One Mauritian TC Company was
sold in its entirety to Immobilien I and Immobilien II. In aggregate,
Immobilien I and Immobilien II paid £86.4 million for investments in which the
Company had invested £41.8 million. The contracts included legal provisions in
the relevant documentation whereby the Group would be obliged to make good to
the acquirer the economic loss which would arise upon the non-fulfilment of
certain conditions in the contractual arrangements.
The amount claimed by Immobilien I and Immobilien II in the original pleading
was their original cost of the investments, being nearly E116 million, plus
amounts to compensate for prejudice, trouble, annoyance, interest and costs.
The Board remains fully committed to defending the claims made by Immobilien I
and Immobilien II. The Directors do not consider it necessary to provide for
the claims in the financial statements, but the Company maintains a provision
of £2 million for future legal costs to defend the actions.
18. Commitments
There were no outstanding contractual commitments at the year-end (2013:
nil).
19. Financial risk management
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk, market price risk and interest rate risk), credit
risk and liquidity risk.
Risk management is carried out by the Board, with assistance from the
Investment Manager to the extent possible and as appropriate.
(a) Market risk
(i) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the Indian
Rupee. Foreign exchange risk arises from future commercial transactions,
recognised monetary assets and liabilities and net investments in foreign
operations.
Net assets denominated in Indian Rupee at the year-end amounted to £25.9
million (2013: £50.8 million).
At 31 March 2014, had the exchange rate between the Indian Rupee and Sterling
increased or decreased by 5% with all other variables held constant, the
increase or decrease respectively in net assets would amount to approximately
£1.3 million (2013: £2.5 million).
The Group does not hedge against foreign exchange movements.
(ii) Market price risk
The Group is exposed to market price risk arising from its investment in
equity investments. All these securities present a risk of capital loss. The
Board and the Investment Manager are responsible for the selection of
investments and monitoring exposure to market risk. All investments are in
Indian companies.
If the value of the group's investment portfolio had increased by 5%, the
Group's net assets would have increased by £1.3 million (2013: £2.5 million).
A decrease of 5% would have resulted in equal and opposite decrease in net
assets.
The Group is exposed to property price risk, property rentals risk and the
normal risks of property development through its investment in Indian real
estate companies.
(iii) Cash flow and fair value interest rate risk
The Group's cash and cash equivalents are invested at short term market
interest rates.
The table below summarises the Group's exposure to interest rate risks. It
includes the Groups' financial assets and liabilities at the earlier of
contractual re-pricing or maturity date, measured by the carrying values of
assets and liabilities.
Less than1 month 1-3months 3 monthsto 1 year 1-5 years Over 5years Non-interestbearing Total
31 March 2014 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Financial assets
Investments at fair value through profit or loss - - - - - 25,465 25,465
Trade and other receivables - - - - - 39 39
Cash and cash equivalents 7,613 - - - - - 7,613
Prepayments - - - - - 10 10
Total financial assets 7,613 - - - - 25,514 33,127
Financial liabilities
Provision for legal costs - - - - - 2,000 2,000
Trade and other payables - - - - - 411 411
Total financial liabilities - - - - - 2,411 2,411
Total interest rate sensitivity gap 7,613 - - - - - -
Less than1 month 1-3months 3 monthsto 1 year 1-5 years Over 5years Non-interestbearing Total
31 March 2013 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Financial assets
Investments at fair value through profit or loss - - - - - 50,817 50,817
Trade and other receivables - - - - - 166 166
Cash and cash equivalents 10,166 - - - - - 10,166
Prepayments - - - - - 124 124
Total financial assets 10,166 - - - 51,107 61,273
Financial liabilities
Performance fee provision - - - - - 2,000 2,000
Provision for legal costs - - - - - 985 985
Trade and other payables - - - - - 436 436
Total financial liabilities - - - - - 3,421 3,421
Total interest rate sensitivity gap 10,166 - - - - - -
(b) Credit risk
Credit risk arises on investments, cash balances and debtor balances. The
amount of credit risk is equal to the amounts stated in the statement of
financial position for each of these assets. Cash balances are limited to
high-credit-quality financial institutions. There are no impairment provisions
as at 31 March 2014 (2013: nil).
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and
marketable securities, the availability of funding through an adequate amount
of committed credit facilities and the ability to close out market positions.
The Company aims to maintain flexibility in funding.
Residual undiscounted contractual maturities of financial liabilities:
31 March 2014 Less than1 month 1-3months 3 monthsto 1 year 1-5 Over 5Years No stated maturity
years
£'000 £'000 £'000 £'000 £'000 £'000
Financial liabilities
Provision for legal costs - - - - - 2,000
Trade and other payables 411 - - - - -
411 - - - - 2,000
31 March 2013 Less than1 month 1-3months 3 monthsto 1 year 1-5 Over 5Years No stated maturity
years
£'000 £'000 £'000 £'000 £'000 £'000
Financial liabilities
Performance fee provision - - - - - 985
Provision for legal costs - - - - - 2,000
Trade and other payables 436 - - - - -
436 - - - - 2,985
20. Related party transactions
Graham Smith is a Director of the Company, and a Director of the
Administrator. He has received no Directors' fees from the Company during the
year (2013: nil). The fees paid by the Company to the Administrator (excluding
VAT) for the year amounted to £0.1 million (2013: £0.1 million).
21. Subsequent events
Since the financial year end, Trinity Capital (Four) Limited. sold 39% of its
holding in SKIL Infrastructure Ltd at a weighted average price of INR 53 per
share compared with a market price at the end of March 2014 of INR 101.
On 18 July 2014, Trinity Capital (Seventeen) Limited sold its investment in
Jodhana, which generated proceeds of £3.1 million. This equals the net
carrying value of the Company's interest in the financial statements at 31
March 2014 in INR terms, but in GBP terms this generated a loss in the post
year-end period of £0.12 million because of currency movements.
The Company further announced a distribution to shareholders of 2.5 pence per
share, equivalent to £5.3 million (the "Distribution"). The Distribution will
be financed from the distributable reserve created by the cancellation of
share premium account that took place shortly after the Company was admitted
to AIM in 2006. The Distribution will be paid on 22 August 2014 to
shareholders recorded on the register on 8 August 2014. The shares will be
marked ex on 6 August 2014.
There were no other material subsequent events.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Revel Collective
See all newsREG - Revel Collective PLC - Directorate Change
AnnouncementREG - Revel Collective PLC - Interim Results
AnnouncementREG - Revel Collective PLC - H1 Update
AnnouncementREG - Revel Collective PLC - Directorate Change
AnnouncementREG - Revel Collective PLC - Issue of Equity
Announcement