The following exhibit presents an excerpt from the annual report for the year ended 31 March 2009 of Daejan Holdings PLC (London: DJAN), a property company headquartered in the United Kingdom.

1. What was the primary cause of the company’s £224,381 thousand net operating loss before net financing costs for the year ended 31 March 2009?
2. What was the primary cause of the company’s £59,101 thousand net operating profit before financing costs for the year ended 31 March 2008?
3. What was the primary cause of the change from a £59,101 thousand net operating profit in 2008 to a £224,381 thousand net operating loss in 2009?
4. Do the valuation gains and losses on investment properties indicate that the properties have been sold?

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EXHIBIT 11 Excerpt from the Consolidated Income Statements at 31 March (Currency in thousands) Gross rental income Service charge income Total Rental and Related Income from Investment Properties Property operating expenses Net Rental and Related Income from Investment Properties Profit on Disposal of Investment Properties Valuation gains on investment properties Valuation losses on investment properties Net Valuation (Losses)/Gains on Investment Properties Administrative expenses Net Operating (Loss)/Profit before Net Financing Costs 2009 83,918 12,055 95,973 (53,470) 42,503 6,758 6,646 2008 73,590 13,362 86,952 (46,464) 40,488 6,578 46,646 (25,982) 20,664 (268,249) (261,603) (12,039) (8,629) (224,381) 59,101