1.   Accounting policies

Basis of measurement and preparation of accounts

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy

Turnover represents income derived from the company's principal activity and is stated net of VAT.

2.   Debtors

The item of Debtors actually does not include unspecified amount of some receivables. The company Llainfair Carainion Cwni Daliannol Ltd. and the company WPB Capital, credit union, (ex FIDELITY, credit union) entered on 20 November, 2002 into a contract containing an agreement on terms and conditions of guaranteeing the recoverability of specific receivables of WPB Capital, credit union, against its debtors, and at the same time the terms and conditions of assignment of the particular receivables of WPB Capital, credit union, from WPB Capital, credit union, as the assignor to Llainfair Carainion Cwni Daliannol Ltd as the assignee. Because the recoverability of the receivables was worsened / at risk, Llainfair Carainion Cwni Daliannol Ltd. exercised its option right set by the contract dated 20 November, 2002 on 10 May, 2013 and filed a lawsuit with the Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic and there has been made an arbitration award in such subject matter on 2 June, 2014 which stated that Llainfair Carainion Cwni Daliannol Ltd. was as of 10 May, 2013 the owner of the receivables specified thereof. In accordance with the contract of 20 November, 2002 there should have been an expert appointed after an agreement between Llainfair Carainion Cwni Daliannol Ltd. and WPB Capital, credit union, who would determine by an expert evidence a valuation of the assigned claims, which should have been paid by Llainfair Carainion Cwni Daliannol Ltd. to WPB Capital, credit union for the receivables. However; WPB Capital, credit union went into liquidation immediately after that. WPB Capital, credit union, in liquidation became represented by JUDr. Jiří Švihla who refuses anywise to negotiate with Llainfair Carainion Cwni Daliannol Ltd. and takes a series of obstructive steps, e. g. the application for revocation of the arbitration award and the application for suspension of the arbitration award to the District Court of Prague 1. The court proceedings at the District Court of Prague 1 are still pending. WPB Capital, credit union, in liquidation represented by the liquidator continues to act as the creditor of the receivables which have been stated by the arbitration award to be in the ownership of Llainfair Carainion Cwni Daliannol Ltd., although Llainfair Carainion Cwni Daliannol Ltd. repeatedly called on WPB Capital, credit union, to refrain from any handling of the receivables until the moment of final legitimate completion of the legal proceedings. With respect to the above Llainfair Carainion Cwni Daliannol Ltd is not able to evaluate the receivables according to their purchase price in order to record such value among the other assets of the company.

3.   Creditors: amounts falling due within one year

The item of Creditors actually does not include unspecified amount of liability to pay the consideration for the assigned receivables as specified under the note 2 of these statements. The liability is to be paid to WPB Capital, credit union, from a credit line facility provided by the company BELASUR FINANCIAL LTD up to the amount of GBP 50,000,000 which has not been used yet.

4.   Creditors: amounts falling due after more than one year

5.   Called up share capital

Allotted, called up and paid

6.   Profit and loss account

The Profit and loss account includes the costs in the amount of GBP 69,863 related to a credit line facility provided by the company BELASUR FINANCIAL LTD up to the amount of GBP 50,000,000 which has not been used yet, but the option fee in the amount of 0,5% of the maximum credit provided is to be paid. The credit line facility has been established due to the need of repayment of liability to WPB Capital, credit union, arisen from the obligation to pay a consideration for the assigned receivables as specified under the notes 2 and 3 of these statements.