Irel Solar Holdco Limited

The principal activity of the Company is to own special purpose vehicles ("SPVs") which own and operate solar PV assets to generate income through the sale of electricity and receipt of government subsidies. The Investment Adviser to the Company during the year was Bluefield Partners LLP (the "Investment Adviser") which is authorised and regulated by the UK FCA under the number 507508. Country of incorporation and legal form of the entity IREL Solar HoldCo Limited was incorporated as a private company, limited by shares, under the Registrar of Companies for England and Wales on 12 August 2016 . Risk management and Control In the ordinary course of business, the Company is exposed to and manages a variety of risks in relation to its activities, including financial risk. The management of credit, interest rate, liquidity and portfolio operational risks are fundamental to the Company, with the Board of directors having responsibility for the overall system of internal control and for reviewing its effectiveness. The key areas of risk in relation to the use of financial statements are listed below and are properly addressed by the management of the Company: Interest risk: Fluctuations in the prevailing levels of market rates of interest pose a risk to the Company's financial position and cash flows. The Company has limited interest rate risk, due to the fact interest charged on intercompany loans are charged at a rate agreed by the parent company and so are not subject to market movements of underlying base rates. The Company also holds external loans which bear interest at a prescribed margin over the UK Base Rate, which is subject to increases and decreases. The Company uses interest rate swap contracts to mitigate its exposure to the interest rate risk attached to changes in the Base Rate on its external loans which is subject to fluctuation. Liquidity risk: Failure to meet financial obligations in a timely and cost effective manner due to mismatches in the maturity profile of assets and liabilities. The Company closely monitors its cash flow levels and financial obligations to anticipate its future cash commitments. Liquidity risk is mitigated through the tenor of loans being matched as closely as possible to the life span of the assets servicing the financial obligations, as well as the Company closely monitoring its underlying cashflows through a quarterly process of reconciling income received and expenses paid. Portfolio operation risk: The directors consider that the principal risks impacting the Company relate to portfolio operation, management and reporting. The risks associated with the underperformance of the portfolio are mitigated through the asset management activities of Bluefield Services Limited who send weekly, monthly and annual reports highlighting the operational status of the portfolio as well as engaging with contractors to ensure technical issues are resolved promptly. Reporting risks, which principally cover possible valuation discrepancies (details of which are outlined in note 11), are mitigated through work performed by the Company's investment advisory who is an active participant within the UK solar market. Credit risk: Losses due to the inability or unwillingness of a customer to meet it's obligations. This is mitigated by the Company's subsidiary undertakings entering into price agreements with creditworthy counterparties for the purchase of electricity to be generated by the solar photovoltaic plant.