10. CASH AND CASH EQUIVALENTS

All of the group’s cash and cash equivalents at 31 March 2012 and 30 November 2011 are in sterling and held at floating interest rates.

The Directors consider that the carrying amount of cash and cash equivalents approximates to their fair value.

11. INVENTORY

12. TRADE AND OTHER PAYABLES

13. BORROWINGS

Included in other loans, all bearing interest at 10%-15% per annum, is the sum of £300,000 (2010: £300,000) advanced by the DFM Pension Scheme of which Mr J Dubois is the principal beneficiary.

The bank borrowings are repayable as follows:

The weighted average interest rates paid on the bank loans were as follows:

Bank Loans - 5.1% (2010: 5.1%)

The Director’s loan is repayable after more than 1 year and is interest free.

The other loans bear interest of between 10-15% and are repayable after more than 1 year.

14. SHARE CAPITAL

      Authorised share capital

On 11 November, 2011, the Company acquired the entire share capital of Combe Bank Homes Limited for the sum of £2,323,524 satisfied by the issue of 186,817,671 New Ordinary Shares of 1p per share.

15. SHARE PREMIUM ACCOUNT

16. RELATED PARTY TRANSACTIONS

Mr C C Johnson holds 87.15% of the total issued share capital of the Group.

On 9 February 2012, the Directors agreed to sell a small number of completed residential properties, which were let pending sale, to Mr C C Johnson for an aggregate consideration of £1,090,000. The Directors believed that a sale of the properties on the open market in the current economic climate would realise a significant loss against cost. The book value of the properties was £1,129,301 at the date of sale.The following working capital loans have been provided by the Directors:

Mr Johnson’s Loan is interest-free and Mr Dubois’ Loan, which is from his Pension Fund of which he is the sole beneficiary, is at 15% pa interest.

17. CATEGORIES OF FINANCIAL INSTRUMENTS

The group’s financial assets are divided as cash and cash equivalents. The group’s financial liabilities are divided as directors loans, bank loans and other loans.

The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and it sets policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below:

Capital risk management

The Group considers its capital to comprise its share capital and share premium. The Group’s capital management objectives are to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

Significant Accounting Policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed on pages 16 to 20 to these financial statements.

Foreign currency risk

The Group has minimal exposure to the differing types of foreign currency risk. It has no foreign currency denominated monetary assets or liabilities and does not make sales or purchases from overseas countries.

Interest rate risk

The Group is sensitive to changes in interest rates principally on the loans from banks. The loans from the directors are interest free.

The impact of a 100 basis point increase in interest rates would result in additional interest cost for the period of £33,302 (2010: £38,901).

Credit risk management

Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the group.

Liquidity risk management

This is the risk of the Company not being able to continue to operate as a going concern.

The Directors have, after careful consideration of the factors set out above, concluded that it is appropriate to adopt the going concern basis for the preparation of the financial statements and the financial statements do not include any adjustments that would result if the going concern basis was not appropriate.

Derivative financial instruments

The Group does not currently use derivative financial instruments as hedging is not considered necessary. Should the group identify a requirement for the future use of such financial instruments, a comprehensive set of policies and systems as approved by the Directors will be implemented. In accordance with IAS 39, "Financial instruments: recognition and measurement", the group has reviewed all contracts for embedded derivatives that are required to be separately accounted for if they do not meet specific requirements set out in the standard. No material embedded derivatives have been identified.

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