Downing Plan 2011 Downing Planned Exit Vct 2011 -7-


Bank of England base rate or LIBOR and comprise cash at bank and 
liquidity fund investments and certain loan note investments. 
 
   "No interest rate" assets do not attract interest and comprise equity 
investments, certain loan note investments, loans and receivables 
(excluding cash at bank) and other financial liabilities. 
 
   Credit risk 
 
   Credit risk is the risk that a counterparty to a financial instrument is 
unable to discharge a commitment to the Company made under that 
instrument. The Company is exposed to credit risk through its holdings 
of loan stock in investee companies, structured products, cash deposits 
and debtors. Credit risk relating to loan stock investee companies is 
considered to be part of market risk. 
 
   The Manager manages credit risk in respect of loan stock with a similar 
approach as described under Investment risks above. In addition the 
credit risk is partially mitigated by registering floating charges over 
the assets of certain investee companies. The strength of this security 
in each case is dependent on the nature of the investee company's 
business and its identifiable assets. The level of security is a key 
means of managing credit risk. Similarly, the management of credit risk 
associated interest, dividends and other receivables is covered within 
the investment management procedures. 
 
   Cash is mainly held by The Co-operative Bank plc and Royal Bank of 
Scotland plc, both of which are A-rated financial institutions and Royal 
Bank of Scotland plc is also ultimately part-owned by the UK Government. 
Consequently, the Directors consider that the credit risk associated 
with cash deposits is low. 
 
   There have been no changes in fair value during the year that are 
directly attributable to changes in credit risk. 
 
   Liquidity risk 
 
   Liquidity risk is the risk that the Company encounters difficulties in 
meeting obligations associated with its financial liabilities. Liquidity 
risk may also arise from either the inability to sell financial 
instruments when required at their fair values or from the inability to 
generate cash inflows as required. As the Company has no borrowings, the 
Board believes that the Company's exposure to liquidity risk is low. The 
Company always holds sufficient levels of funds as cash in order to meet 
expenses and other cash outflows as they arise. For these reasons the 
Board believes that the Company's exposure to liquidity risk is minimal. 
 
   The Company's liquidity risk is managed by the Investment Manager in 
line with guidance agreed with the Board and is reviewed by the Board at 
regular intervals. 
 
   ANNOUNCEMENT BASED ON AUDITED ACCOUNTS 
 
   The financial information set out in this announcement does not 
constitute the Company's statutory financial statements in accordance 
with section 434 Companies Act 2006 for the year ended 30 November 2013, 
but has been extracted from the statutory financial statements for the 
year ended 30 November 2013 which were approved by the Board of 
Directors on 28 March 2014 and will be delivered to the Registrar of 
Companies. The Independent Auditor's Report on those financial 
statements was unqualified and did not contain any emphasis of matter 
nor statements under s 498(2) and (3) of the Companies Act 2006. 
 
   The statutory accounts for the year ended 30 November 2012 have been 
delivered to the Registrar of Companies and received an Independent 
Auditors report which was unqualified and did not contain any emphasis 
of matter nor statements under s 498(2) and (3) of the Companies Act 
2006. 
 
   A copy of the full annual report and financial statements for the year 
ended 30 November 2013 will be printed and posted to shareholders 
shortly. Copies will also be available to the public at the registered 
office of the Company at 10 Lower Grosvenor Place, London, SW1W 0EN and 
will be available for download from www.downing.co.uk. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Downing Planned Exit VCT 2011 plc via Globenewswire 
 
   HUG#1772655
Downing Vct11 (LSE:D1GO)
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