An interesting set of numbers in the VA "Report as to Affairs as...

An interesting set of numbers in the VA "Report as to Affairs as at 19 March 2009". VA included, wrote back, impaired loans 30/06/08 (intercompany transactions/loans) for book valuation purposes than wrote them out again for estimated realisable value. View page 38 of the Annual report (AR) in Current Assets to ID Sundry Debtors being trade & other receivables; there's no comparsion for the $63,620m i.e. no intercompany transactions/loans were brought to account at 30/06/08 Balance Sheet.

Note -

VA - Sundry Debtors (including intercompany loans) at Book Value $63,620 m

AR - less impaired loans (foregiven to subsidiaries at 30/06/08) $41,352 m

VA - less Sundry Debtors
(including intercompany loans) Estimated Realisable Value $5,858 m

Leaves a balance of $16,409 m

This balance in all likelihood is further intercompany transactions/loans made in the current fiscal period. If so appears to be treated as an impaired loan/foregiven to-gether, again, with impaired loans (intercompany) made at 30/06/08. The debtors estimated realisable value of $5,858m is comparable to the Annual Report, page 38, figures being trade debtors/receivables.


Other Assets -

It is not clear what Other Assets are but one could assume this includes shares in VCR 100% owned subsidiaries.

Contingent Liabilities -

Note points 3.3 and 3.4 in the VA 1st letter to creditors in relation to the arising of contingent liablities. The Annual Report at 30/06/08 states there are no contingent liabilities at that date. Hence, these can only possibility be those liabilities in notes 23b & 24 of the AR. Note 24" Commitments for expenditure" would fall within this realm under VA points of reference 3.3 & 3.4.

These liabilities, Commitments for expenditure, would be adequately covered in the course of normal operations, a going conern e.g. non-cancelable leases appropriated over the life of the lease. They have only relevance in the current situation.


IMHO


BTW, Inventory levels of LAVD4's 170 odd & LAVD3'3 50 odd are high? Under the current/past sales history looking at something like 8 to 10 months stock supply in hand. Quite a stack IMO.

PS chickpea, VCR Ltd Australia in VA.