Make the adjustment by note $4.$

Note $4-$ Long term interest bearing borrowings

On $1$ April $2023$ Hugo borrowed $$50$ million for five years at an annual interest rate of $6\%.$ The market interest rate on loans at this time was $8\%$ and so the terms of the contract provide for a repayment on$1$ April $2028$ of more than $$50$ million. The repayment makes the effective interest rate applicable to the loan $8\%.$ At $31$ March $2023$ the market value of a loan with identical cash flows was $$53$ million. Hugo does not consider that the loan is part of a trading portfolio.