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Notes to the Financial Statements continuedThese powers and guidelines include the requirement to invest in a number of companies across a range of industrialand service sectors at varying stages of development but with the emphasis on well established businesses. TheCompany complied with the stated investment guidelines and borrowing powers throughout the year ended 28February 2009.Further information on the investment portfolio (including sector analysis, concentration and deal type analysis)is set out in the Analysis of Unlisted and AIM/PLUS Portfolio, the Investment Manager’s Review, the Summary ofInvestment Changes, the Investment Portfolio Summary and the Ten Largest Unlisted and AIM/PLUS Investments.(ii) Interest rate riskNon-interestFixed interest Floating rate bearing28 February 2009 £’000 £’000 £’000SterlingListed 2,921 – –Unlisted and AIM/PLUS 11,982 – 5,929Cash – 1,110 –14,903 1,110 5,929Non–interestFixed interest Floating rate bearing29 February 2008 £’000 £’000 £’000SterlingListed 2,492 – –Unlisted and AIM/PLUS 12,052 – 10,458Cash – 272 –14,544 272 10,458The listed fixed interest assets have a weighted average life of 0.99 years (2008: 1.2 years) and weighted averageinterest rate of 5.32% (2008: 4.65%) per annum. These assets are held to provide liquidity for the unlistedinvestments. The floating rate assets consist of cash deposits on call. These assets are earning interest at prevailingmoney market rates. The unlisted assets have a weighted average life of 3.7 years (2008: 4.1 years) and a weightedaverage interest rate of 10.3% (2008: 10.2%). The non-interest bearing assets represent the equity element of theportfolio. All assets and liabilities of the Company are included in the Balance Sheet at fair value.Maturity profileThe maturity profile of the Company’s financial assets at the balance sheet date was as follows:Within Within Within Within Within More than1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years TotalAt 28 February 2009 £’000 £’000 £’000 £’000 £’000 £’000 £’000Fixed interestListed 1,663 1,258 – – – – 2,921Unlisted 134 1,074 5,043 1,271 1,969 2,491 11,9821,797 2,332 5,043 1,271 1,969 2,491 14,903Within “more than 5 years” there is a figure of £1,363,000 in respect of preference shares which have noredemption date.It is the Directors’ opinion that the carrying amounts of these financial assets represent the maximum credit riskexposure at the balance sheet date.40 Aberdeen Income and Growth VCT PLC
Within Within Within Within Within More than1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years TotalAt 29 February 2008 £’000 £’000 £’000 £’000 £’000 £’000 £’000Fixed interestListed 400 2,092 – – – – 2,492Unlisted 454 515 1,204 5,081 1,806 2,992 12,052854 2,607 1,204 5,081 1,806 2,992 14,544Within “more than 5 years” there is a figure of £1,602,000 in respect of preference shares which have noredemption date.It is the Directors’ opinion that the carrying amounts of these financial assets represent the maximum credit riskexposure at the balance sheet date.(iii) Liquidity riskDue to their nature, unlisted investments may not be readily realisable; a portfolio of listed assets and cash is held tomitigate this liquidity risk.Credit risk and interest rate risk are minimised by acquiring high-quality treasury stocks or other bonds which have arelatively short time to maturity (see Investment Portfolio Summary).The Company, generally, does not hold significant cash balances and any cash held is with reputable banks with highquality,external credit ratings.(iv) Credit riskThis is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that ithas entered into with the Company.The Company’s financial assets exposed to credit risk amounted to the following:28 February 2009 29 February 2008£’000 £’000Investments in listed fixed interest instruments 2,921 2,492Investments in unlisted debt securities 11,982 12,052Cash and cash equivalents 1,110 27216,013 14,816Credit risk arising on fixed interest instruments is mitigated by investing in UK Government Stock.All fixed interest assets which are traded on a recognised exchange and all the Company’s cash balances are heldby JP Morgan Chase (JPM), the Company’s custodian. Should the credit quality or the financial position of JPMdeteriorate significantly the Manager will move these assets to another financial institution. The disclosures on goingconcern in the Directors’ Report form part of these Financial Statements.The Manager evaluates credit risk on unlisted debt securities and financial commitments and guarantees prior toinvestment, and as part of the ongoing monitoring of investments. In doing this, it takes into account the extent andquality of any security held. Typically, unlisted debt securities have a fixed charge over the assets of the investeecompany in order to mitigate the gross credit risk. The Manager receives management accounts from investeecompanies and members of the investment management team sit on the boards of investee companies; this enablesthe close identification, monitoring and management of investment specific credit risk.There were no significant concentrations of credit risk to counterparties at 28 February 2009 or 29 February 2008.(v) Price risk sensitivityThe following details the Company’s sensitivity to a 10% increase or decrease in the market prices of AIM/PLUSquoted securities, with 10% being the Manager’s assessment of a reasonable possible change in market prices.At 28 February 2009, if market prices of listed or AIM/PLUS quoted securities had been 10% higher or lower andwith all other variables held constant, the increase or decrease in net assets attributable to Ordinary Shareholders forthe year would have been £494,000 (2008: £763,000) due to the change in valuation of financial assets at fair valuethrough profit or loss.Aberdeen Income and Growth VCT PLC 41
Page 2 and 3: Contents1 Financial HighlightsAnnua
Page 4 and 5: Financial Highlights continuedNAV t
Page 6 and 7: Chairman’s Statement continuedPor
Page 8: Investment Manager’s ReviewInvest
Page 11 and 12: Summary of Investment ChangesFor th
Page 13: InvestmentValuation£’000Cost£
Page 16 and 17: Your BoardThe Board of four Directo
Page 18 and 19: Directors’ Report continuedThe In
Page 20 and 21: Directors’ Report continuedIn lig
Page 22 and 23: Directors’ Remuneration ReportThe
Page 24 and 25: Statement of Corporate GovernanceTh
Page 26 and 27: Statement of Corporate Governance c
Page 28 and 29: Statement of Corporate Governance c
Page 30 and 31: Independent Auditors’ Report to t
Page 32 and 33: Balance SheetAs at 28 February 2009
Page 34 and 35: Notes to the Financial StatementsFo
Page 36 and 37: Notes to the Financial Statements c
Page 39 and 40: 9 Participating Interests (continue
Page 41: Year endedYear ended15 Reconciliati
Page 45 and 46: 10. To consider and, if thought fit
Page 47 and 48: Corporate SummaryCompany profileAbe
Page 50: Aberdeen Asset Managers Limited10 Q

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