guidelines. The valuation methodologies for unquoted entities used by 
the IPEV to ascertain the fair value of an investment are as follows: 
 
   * Price of recent investment; 
 
   * Multiples; 
 
   * Net assets; 
 
   * Discounted cash flows or earnings (of underlying business); 
 
   * Discounted cash flows (from the investment); and 
 
   * Industry valuation benchmarks. 
 
   The methodology applied takes account of the nature, facts and 
circumstances of the individual investment and uses reasonable data, 
market inputs, assumptions and estimates in order to ascertain fair 
value. 
 
   Gains and losses arising from changes in fair value are included in the 
Income Statement for the year as a capital item and transaction costs on 
acquisition or disposal of the investment are expensed. Where an 
investee company has gone into receivership or liquidation, or 
administration (where there is likelihood of little recovery), the loss 
on the investment, although not physically disposed of, is treated as 
being realised. 
 
   It is not the Company's policy to exercise significant influence over 
investee companies. Therefore, the results of these companies are not 
incorporated into the Income Statement except to the extent of any 
income accrued. This is in accordance with the SORP that does not 
require portfolio investments to be accounted for using the equity 
method of accounting. 
 
   Income 
 
   Dividend income from investments is recognised when the shareholders' 
rights to receive payment has been established, normally the ex-dividend 
date. 
 
   Interest income is accrued on a time apportionment basis, by reference 
to the principal sum outstanding and at the effective rate applicable 
and only where there is reasonable certainty of collection in the 
foreseeable future. 
 
   Expenses 
 
   All expenses are accounted for on an accruals basis. In respect of the 
analysis between revenue and capital items presented within the Income 
Statement, all expenses have been presented as revenue items except as 
follows: 
 
   * Expenses which are incidental to the disposal of an investment are 
deducted from the disposal proceeds of the investment. 
 
   * Expenses are split and presented partly as capital items where a 
connection with the maintenance or enhancement of the value of the 
investments held can be demonstrated. The Company has adopted a policy 
of charging 75% of the investment management fees to the revenue account 
and 25% to the capital account to reflect the Board's estimated split of 
investment returns which will be achieved by the company over the long 
term. 
 
   * Expenses and liabilities not specific to Share class are generally 
allocated pro rata to the net assets. 
 
   Taxation 
 
   The tax effects on different items in the Income Statement are allocated 
between capital and revenue on the same basis as the particular item to 
which they relate, using the Company's effective rate of tax for the 
accounting year. 
 
   Due to the Company's status as a Venture Capital Trust and the continued 
intention to meet the conditions required to comply with Part 6 of the 
Income Tax Act 2007, no provision for taxation is required in respect of 
any realised or unrealised appreciation of the Company's investments 
which arises. 
 
   Deferred taxation, which is not discounted, is provided in full on 
timing differences that result in an obligation at the balance sheet 
date to pay more tax, or a right to pay less tax, at a future date, at 
rates expected to apply when they crystallise based on current tax rates 
and law. Timing differences arise from the inclusion of items of income 
and expenditure in taxation computations in periods different from those 
in which they are included in the accounts. 
 
   A net deferred tax asset is regarded as recoverable and therefore 
recognised only to the extent that, on the basis of all available 
evidence, it can be regarded as more likely than not that there will be 
suitable taxable profits from which the future reversal of the 
underlying timing differences can be deducted. 
 
   Other debtors, other creditors and loan notes 
 
   Other debtors (including accrued income), other creditors and loan notes 
(other than those held as part of the investment portfolio as set out in 
note 9) are included within the accounts at amortised cost. 
 
   Issue costs 
 
   Issue costs in relation to the shares issued for each share class have 
been deducted from the share premium account. 
 
   2. Basic and diluted return per share 
 
   Return per share is calculated on the following: 
 
 
 
 
                                    Weighted 
                                     average        Revenue     Capital 
                                      number         return    loss/return 
Year ended 30 November 2013     of shares in issue   GBP'000     GBP'000 
 General Ordinary Shares                15,682,198       515         (122) 
 General 'A' Shares                     18,436,157         -             - 
 
 Structured Ordinary Shares             10,706,682       171           155 
 Structured 'A' Shares                  12,601,247         -             - 
 
 Low Carbon Ordinary Shares              8,105,758       308           379 
 
 
 
   As the Company has not issued any convertible securities or share 
options, there is no dilutive effect on return per share for any of the 
share classes. The return per share disclosed therefore represents both 
the basic and diluted return per share for all share classes. 
 
   3. Basic and diluted net asset value per share 
 
 
 
 
                       Shares in issue           2013             2012 
                                            Pence            Pence 
                                              per              per 
                       2013        2012      share  GBP'000   share  GBP'000 
General Ordinary 
 Shares             15,679,241  15,684,891    78.0   12,229    80.3   12,595 
General 'A' Shares  18,453,789  18,476,489     6.2    1,136     6.3    1,166 
Structured 
 Ordinary Shares    10,703,725  10,709,375    80.1    8,576    81.9    8,770 
Structured 'A' 
 Shares             12,597,594  12,605,294     6.3      796     6.5      818 
Low Carbon 
 Ordinary Shares     8,102,222   8,109,363    83.8    6,792    80.4    6,516 
Net assets per 
 Balance Sheet                                       29,529           29,865 
 
 
 
   As the Company has not issued any convertible shares or share options, 
there is no dilutive net asset value per share. The net asset value per 
share disclosed therefore represents both the basic and diluted net 
asset value per share. 
 
   4. Principal Risks 
 
   The Company's investment activities expose the Company to a number of 
risks associated with financial instruments and the sectors in which the 
Company invests. The principal financial risks arising from the 
Company's operations are: 
 
   Market risks; 
 
   Credit risk; and 
 
   Liquidity risk. 
 
   The Board regularly reviews these risks and the policies in place for 
managing them. There have been no significant changes to the nature of 
the risks that the Company is exposed to over the year and there have 
also have been no significant changes to the policies for managing those 
risks during the year. 
 
   The risk management policies used by the Company in respect of the 
principal financial risks and a review of the financial instruments held 
at the year end are provided below: 
 
   Market risks 
 
   As a VCT, the Company is exposed to market risks in the form of 
potential losses and gains that may arise on the investments it holds in 
accordance with its investment policy. The management of these market 
risks is a fundamental part of investment activities undertaken by the 
Investment Manager and overseen by the Board. The Manager monitors 
investments through regular contact with management of investee 
companies, regular review of management accounts and other financial 
information and attendance at investee company board meetings. This 
enables the Manager to manage the investment risk in respect of 
individual investments. Market risk is also mitigated by holding a 
diversified portfolio spread across various business sectors and asset 
classes. 
 
   The key market risks to which the Company is exposed are: 
 
   Market price risk 
 
   Interest rate risk 
 
   Market price risk 
 
   Market price risk arises from uncertainty about the future prices and 
valuations of financial instruments held in accordance with the 
Company's investment objectives. It represents the potential loss that 
the Company might suffer through market price movements in respect of 
quoted investments and also changes in the fair value of unquoted 
investments that it holds. 
 
   At 30 November 2013, the structured product portfolio was valued at 
GBP2,148,000. 
 
   The fair values of structured products are influenced primarily by 
changes in the FTSE 100 Index. The Company's sensitivity to fluctuations 
in the FTSE 100 Index is summarised below. 
 
   * This excludes the BNP Paribas Harewood Absolute Progression 2 which is 
not directly linked to FTSE 100 Index performance. 
 
   Interest rate risk 
 
   The Company accepts exposure to interest rate risk on floating-rate 
financial assets through the effect of changes in prevailing interest 
rates. The Company receives interest on its cash deposits at a rate 
agreed with its bankers. Investments in loan stock attract interest 
predominately at fixed rates. A summary of the interest rate profile of 
the Company's investments is shown below. 
 
   There are four categories in respect of interest which are attributable 
to the financial instruments held by the Company as follows: 
 
   "Fixed rate" assets represent investments with predetermined yield 
targets and comprise certain loan note investments and Preference 
Shares. 
 
   "Variable rate" assets represent investments with predetermined interest 
rates that vary at set dates in accordance with loan agreements. 
 
   "Floating rate" assets predominantly bear interest at rates linked to 

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