Annual report and financial statements - NVM Private Equity Ltd.

Notes to the Financial Statements
for the year ended 31 October 2007
15 Reserves
Capital Capital Capital
Share redemption reserve reserve Revenue
premium reserve – realised – unrealised reserve
£000 £000 £000 £000 £000
At 1 November 2006 11,896 112 74 (132) 150
Premium on issue of ordinary shares 27 – – – –
Share issue expenses (4) – – – –
Shares purchased for cancellation – 66 (722) – –
Transfer on reduction of share premium (10,000) – 10,000 – –
Expenses charged to capital reserve – – (18) – –
Gain on disposal of investments – – 380 – –
Previously recognised losses now realised – – (361) 361 –
Management fee capitalised net of associated tax – – (236) – –
Unrealised adjustments to fair value of investments – – – 1,393 –
Revenue return on ordinary activities after tax – – – – 69
Dividends recognised in the year – – (136) – (92)
At 31 October 2007 1,919 178 8,981 1,622 127
The realised capital reserve and the revenue reserve are distributable reserves.
16 Net asset value per share
The calculation of net asset value per share as at 31 October 2007 is based on net assets of £13,914,000 (2006 £13,250,000) divided by
the 21,746,189 (2006 23,006,241) ordinary shares in issue at that date.
17 Financial instruments
The company's financial instruments comprise equity and fixed-interest investments, cash balances and liquid resources.
Investments are made in a combination of equity and loan investments so as to enable the company to achieve its objective of providing
high long-term returns to shareholders through a combination of dividend yield and capital growth. Surplus funds are held on bank deposit
or in listed money market instruments.
The company has no derivative financial instruments and has no financial asset or liability for which hedge accounting has been used.
All financial assets are held in sterling, hence there is no foreign currency exchange rate exposure.
Fixed asset investments are valued at fair value. For quoted investments this is either bid price or the latest traded price. In respect of
unquoted investments, these are fair valued by the directors in accordance with current industry guidelines. Where no reliable fair value
can be estimated, unquoted investments are carried at cost subject to provision for impairment where necessary. The fair value of all other
financial assets and liabilities is represented by their carrying value in the balance sheet.
Market risk, credit risk and liquidity risk are discussed in the business review on pages 6 to 11.
Some of the company's financial assets are interest-bearing, of which some are at fixed rates and some variable. As a result, the company
is subject to exposure to fair value interest rate risk due to fluctuations in prevailing levels of market interest rates.
38 Northern AIM VCT PLC Annual Report and Accounts 2007