please explain, page-20

Ausheds - accounting my friend, accounting.

If LYC has profits of $100 US, at a 10% up tick when converted to AU$, would yield $110m. This would be the reported trading profit (assuming no overheads or financing cost etc)..

Now if they had to pay back $100m US of capital it would cost $110m. So in one way it is a wash, but from an accountancy point of view the capital repayment is higher, and until repaid will show as a finical cost for the difference on the ongoing accounts.

From an investor point of view it is important to separate these items as a capital repayment is a one off event, but the trading profits are ongoing, one trusts.