General Capital (GEN:NZ) Announces Very Strong Growth

General Capital Limited
Level 8, General Capital House,
115 Queen Street, Auckland CBD
PO Box 1314, Shortland Street,
Auckland, New Zealand. 1140.
Phone +64 9 304 0145


General Capital (GEN:NZ) Announces Very Strong Growth

General Capital, the listed financial services group, has had another very strong result over
the 6 months to 30 September 2022.

The Chairman of General Capital, Mr. Rewi Bugo said, “All aspects of our financial
performance have shown strong growth over the 6 months. It is pleasing to see the strong
support we have received from our depositors with growth in deposit funding of 25% in the
6 months. This has allowed us to increase our loan book by 26% and our total assets by 23%.
The point our directors are most proud of is that we have continued our growth and the
Group is now producing strong and increasing profits. We have said we will continue to focus
on profitable growth. This result shows our strategy is working.”

Mr. Brent King, Managing Director advised, “At our Shareholder meeting in September we
noted the expected 6 months Net Profit After Tax of $900k to $1.05m. The group achieved
Net Profit After Tax of $1.04m. It’s worth noting that the result includes $250k of Impairment
of Goodwill expense. This is an accounting expense often called a “paper” non-cash expense.
The details of the accounts are all positive: Revenue Up 82% NPAT Up 191% EPS Up 123%
Assets Up 22.8% Net Assets Up 7.3% This is a strong performance for the Group.”

Looking forward, we are expecting the remainder of the financial year to be strong and
profitable with continued balance sheet growth. There is significant opportunity in the market
currently. We are seeking to take advantage of this without taking additional risk.”

For further information contact:

Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz

29 November 2022

END

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Name of issuer
Reporting Period
Previous Reporting Period
Currency
Revenue from continuing
operations
Total Revenue
Net profit/(loss) from continuing
operations
Total net profit/(loss)
Amount per Quoted Equity
Security
Imputed amount per Quoted
Equity Security
Record Date
Dividend Payment Date
Net tangible assets per Quoted
Equity Security
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Name of person authorised to
make this announcement
Contact person for this
announcement
Contact phone number
Contact email address
Date of release through MAP
Results for announcement to the market
Percentage change
82%
82%
191%
General Capital Limited
New Zealand Dollars ($)
6 months to 30 September 2021
6 months to 30 September 2022
$6,029
Amount (000s)
Interim/Final Dividend
191%$1,039
$1,039
$6,029
It is not proposed to pay a dividend for this period.
Refer to Directors' Report
$0.0430
Prior comparable period
29 November 2022
Brent.King@gencap.co.nz
+64 21 632 660
Brent King
Managing Director
Victor Pliev
Chief Financial Officer
Not applicable
Not applicable
Not applicable
Current period
$0.0547
Authority for this announcement

Interim Condensed Consolidated Financial
Statements
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

1
General Capital Limited
Interim Condensed Consolidated Financial Statements
For the six months ended 30 September 2022
Contents
Directors’ Report 2-4
Consolidated Financial Statements:
Interim Condensed Consolidated Statement of Comprehensive Income 5
Interim Condensed Consolidated Statement of Financial Position 6
Interim Condensed Consolidated Statement of Changes in Equity 7
Interim Condensed Consolidated Statement of Cash Flows 8
Notes to the Interim Condensed Consolidated Financial Statements 9-25

2
Directors’ Report
The Directors of General Capital Limited are pleased to present a very strong result for the six months ended 30
September 2022. General Capital's revenue was 82% higher than the prior 6-month period ended 30 September
2021 which resulted in net profit after tax of $1,038,687 for the 6-month period ended 30 September 2022, the
strongest half year results since the group listed in 2018. This is also after Goodwill Impairment of $250,154
recognised in the period. The group's total assets grew by a further 22.8% since 31 March 2022.
1.0 Financial Performance
6 month 6 month
period ended period ended
30 Sep 30 Sep
2022 2021 Movement %
Revenue $6,029,400 $3,306,236 82.0%
Net profit / (loss) after tax $1,038,687 $357,436 191%
Earnings / (loss) per share*
0.49 cps 0.22 cps 123%
* Calculated as Net Profit after income tax expense divided by the weighted average number of
ordinary shares
30 Sep 31 Mar 6-monthly
2022 2022 increase
Total assets
$126,336,125 $102,904,694 22.8%
Total liabilities
$111,810,149 $89,372,001 25.1%
Net assets
$14,525,976 $13,532,693 7.3%
30 Sep 31 Mar 6-monthly
2022 2022 increase
Net tangible assets (NTA) per share*
5.47 cps 4.93 cps 11.0%
Net assets (NA) per share**
6.83 cps 6.36 cps 7.4%
* Calculated as Net Assets less deferred tax , goodwill and other intangible assets divided by the total shares on
issue as at balance date.
** Calculated as Net Assets divided by the total shares on issue as at balance date.
The group made a profit after tax of $1,038,687 for the six-month period ended 30 September 2022. This can be
broken down as follows:
30-Sep30-Sep
20222021Var % Change
Finance Segment
$1,457,647 $541,588 $916,059
169%
Research and Advisory Segment
($247,504) $51,204 ($298,708)
-583%
Corporate and Other Segment
($113,453) ($263,062) $149,609
57%
Group Eliminations
($58,003) $27,706 ($85,710)
-309%
Group $1,038,687 $357,436 $681,250
191%

3
Directors’ Report (continued)
2.0 Segment Performance and Outlook
Finance Segment
General Finance Limited, the wholly owned subsidiary and non-bank deposit taker (NBDT) licensed by the
RBNZ, has had a very strong six months. Secured term deposits grew by 25% between 31 March 2022 and 30
September 2022.
The growth in term deposit funding allowed General Finance to increase its loan book by 26% and still retain
strong liquidity and cash available as at 30 September 2022. The growth in the loan book combined with an
increase in the net interest margin across the period resulted in General Finance's achieving a record profit.
The business is well placed for further growth in total assets and profitability.
Research and Advisory Segment
In the six months ended 30 September 2022 Investment Research Group ("IRG") has achieved its forecast
cashflows, however due to higher interest rates and the changing market the Group has decided to test the
carrying value of Goodwill and Licences as at 30 September 2022. Testing resulted in an impairment expense
of $250,154 which pushed the segment into a loss. This is an accounting expense often called a "paper" non-
cash expense.
Despite the above, the Group is excited about the future prospects of the segment, given the increasing
demand of debt structuring engagements and market rationalisation which brings about opportunities for the
advisory segment. The major influencers of revenue are Investment Bankers contracted to IRG. We are
focusing on strategies to increase our resource in this sector from 1 April 2023.
Corporate and Other Segment
The corporate and other segment comprises the overheads of running the listed parent company. A
management fee has been charged in the financial period to recover the greater corporate overheads caused
by the increase in costs as the business grows and inflation impacts fees and costs.
Refer to the attached financial information for detailed segmental results.
2.1 General Finance Credit Rating
General Finance has had a credit rating from Equifax Australasia Credit Rating Pty Ltd ("Equifax"). Equifax gives
ratings from AAA through to C (excluding ratings attaching to entities in default). Equifax has issued General
Finance a credit rating of BB- with a positive outlook. According to Equifax's criteria, this rating is classified as
"Near Prime". General Finance is very pleased with this rating as a number of participants in the financial services
sector have been downgraded due to the impact of the COVID pandemic. This is a strong endorsement of
General Finance's performance.
3.0 Staff and Directors
The 6 months have been challenging, but very positive for General Capital. The rapid changes in the market are
causing all items of a loan book to be constantly reassessed. Our staff have performed well, given the challenges,
and we are very pleased with the progress. With our growth we will need to increase staff numbers in the next 6
months. Our growth in assets has outpaced our growth in staff numbers.
4.0 General Capital in the Community
We operate in the fantastic community that New Zealand offers us all. Our duty is to run our businesses as well
as we are able and to give our stakeholders, (Shareholders, investors and staff plus those less fortunate) a fair
proportion of our success.

4
Directors’ Report (continued)
5.0 The future
We have said in previous years that General Capital Group is extremely well placed to take advantage of
opportunities in the finance sector over the next few years.
•We have reached agreement with 2 investors to introduce a total of $8.6million into the group. We will
use the majority to increase the capital of General Finance so we can further develop our lending book.
•We will continue the hold a strong balance sheet with conservative ratios.
•We will make consistently strong returns on our capital.
•We will consider new lending niche opportunities to complement our current business.
•We will continue to seek ways we can build and develop our advisory business.
•We will take decisions that will enhance our share value.
•We will constantly review regulatory changes (e.g., The Deposit Taker’s Bill) to find a way in which we
can create a niche for us for the next decade.
6.0 Summary
We have another record 6-month period for the group. We currently expect the remainder of the financial year
to be strong and profitable with continued balance sheet growth. We do not rule out acquisitions as some of
the pricing is becoming more appropriate.
The Directors thank General Capital's shareholders and General Finance's secured term deposit investors for
their support of the group we also thank our staff for their significant contributions, sometimes in very
challenging circumstances.
Rewi Hamid Bugo Brent Douglas King
Chairman Managing Director

Unaudited Unaudited
SepSep
20222021
$$
Interest income
4,604,177 2,323,644
Interest expense
(2,235,129) (1,317,154)
Net interest income
2,369,048 1,006,490
Fee and commission income
1,407,775 757,224
Fee and commission expense
(343,309) (196,024)
Net fee and commission income
1,064,466 561,200
Revenue from contracts with customers
2,234 206,823
Cost of sales
(185) (20,456)
Gross profit from contracts with customers
2,049 186,367
Other income
15,214 18,545
Net revenue
3,450,777 1,772,602
(Increase) / release in allowance for expected credit losses
7 (183,658) (22,401)
Personnel expenses
(550,406) (511,611)
Depreciation
(77,107) (75,282)
Amortisation and Impairment of intangible assets
8 (250,663) (3,879)
Other expenses
(849,040) (629,776)
(1,910,874) (1,242,949)
Net profit before income tax expense
1,539,903 529,653
Income tax (expense) / benefit (501,216) (172,217)
Net profit after income tax expense
1,038,687 357,436
Other comprehensive income
Items that will not be reclassified to profit or loss
(37,205)
-
Other comprehensive income for the period (net of tax)
(37,205) -
Total comprehensive income
1,001,482 357,436
Earnings per share (cents per share)6 0.49 0.22
Diluted earnings per share (cents per share)6 0.49 0.22
The accompanying notes are an integral part of these financial statements.
GENERAL CAPITAL LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
Changes in the fair value of equity investments at fair value through
other comprehensive income
5

GENERAL CAPITAL LIMITED
Unaudited Audited Unaudited
SepMarSep
202220222021
$$$
Equity
Share capital 13,017,376 13,025,575 10,687,857
Accumulated (losses) / earnings 1,791,603 752,916 (237,215)
Reserves (283,003) (245,798) (59,743)
Total equity
14,525,976 13,532,693 10,390,899
Assets
Cash and cash equivalents 17,239,983 16,661,570 15,059,386
Accounts receivables 382 17,350 54,036
Related party receivables10 68 - -
Other current assets 338,674 229,725 258,993
Bank deposits 4,356,210 2,450,000 950,000
Loan receivables7 101,156,540 80,027,661 62,732,808
Deferred tax asset 249,193 135,049 119,598
Property, plant and equipment 24,174 29,431 19,975
Right of use assets 73,375 146,750 220,125
Investments
250,909 288,442 401,086
Intangible assets and goodwill8 2,646,617 2,918,716 2,902,200
Total assets
126,336,125 102,904,694 82,718,207
Liabilities
Accounts payable and other payables 585,849 613,770 471,517
Related party payables10 37,448 13,191 7,178
Term deposits9 110,470,674 88,047,219 71,437,797
Lease liability 104,608 174,364 241,831
Income tax payable 611,570 523,457 168,985
Total liabilities
111,810,149 89,372,001 72,327,308
Net assets
14,525,976 13,532,693 10,390,899
5.47 4.93 4.30
6.83 6.36 6.07
The accompanying notes are an integral part of these financial statements.
The financial statements are signed on behalf of the Board.
Rewi Bugo Brent King
ChairmanManaging Director
Authorised for issue on 29 November 2022.
AS AT 30 SEPTEMBER 2022
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Net assets (NA) per share (cents per share)
Net tangible assets (NTA) per share (cents per share)
6

GENERAL CAPITAL LIMITED
Note$$$$
10,249,211 (129,267) (594,651) 9,525,293
- - 357,436 357,436
- - - -
- - 357,436 357,436
438,646 438,646
69,524 69,524
438,646 69,524 - 508,170
10,687,857 (59,743) (237,215) 10,390,899
13,025,575 (245,798) 752,916 13,532,693
- - 1,038,687 1,038,687
- (37,205)- (37,205)
- (37,205) 1,038,687 1,001,482
(8,199) - - (8,199)
(8,199) - - (8,199)
13,017,376 (283,003) 1,791,603 14,525,976
The accompanying notes are an integral part of these financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
Accumulated
(losses) /
earnings
Share capital ReservesTotal equity
Total equity as at 1 April 2022
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Total equity as at 1 April 2021
Profit for the period
Contributions of equity net of
transaction costs
Other comprehensive income for
the period
Issue of warrants to senior
managers
Contributions of equity net of
transaction costs
Total transactions with owners in
their capacity as owners
Balance at 30 September 2021
(Unaudited)
Profit for the period
Other comprehensive income for
the period
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Total transactions with owners in
their capacity as owners
Balance at 30 September 2022
(Unaudited)
7

GENERAL CAPITAL LIMITED
Unaudited Unaudited
SepSep
20222021
$$
Cash flows from operating activities
Interest received
4,377,840 2,148,381
Receipts from customers
920,201 966,627
Other income
1,910 2,345
Payments to suppliers and employees
(1,876,578) (1,387,464)
Interest paid
(2,005,584) (1,191,626)
Income tax paid
(527,247) (51,484)
Net cash flows from operating activities before changes in
886,895 486,779
operating assets and liabilities
Term deposits (net receipts)
22,212,584 13,457,059
Finance receivables (net advances) / net repayments
(20,538,426) (8,785,633)
Net cash flows from operating activities
2,561,053 5,158,205
Cash flows from investing activities
Proceeds from the sale of bonds
- 194,018
Investments in bank deposits
(1,906,210) 2,050,000
Purchase of property, plant and equipment
1,525 (8,374)
Net cash flows from / (applied to) investing activities
(1,904,685) 2,235,644
Cash flows from financing activities
Issue of ordinary shares/ (Capital raising costs)
(8,199) 438,646
Lease payments
(69,756) (65,376)
Net cash flows from financing activities
(77,955) 373,270
Reconciliation of cash and cash equivalents
16,661,570 7,292,267
578,413 7,767,119
17,239,983
15,059,386
The accompanying notes are an integral part of these financial statements.
Cash and cash equivalents at end of the reporting period
Net (decrease) / increase in cash and cash equivalents held
during the reporting period
Cash and cash equivalents at beginning of the reporting
period
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
8

NOTE 1: REPORTING ENTITY
NOTE 2: BASIS OF PREPARATION
NOTE 3: CHANGES IN ACCOUNTING POLICIES
NOTE 4: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
TheinterimcondensedconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheFinancialMarkets
Conduct Regulations 2014 and New Zealand Generally Accepted Accounting Practice (NZ GAAP). In accordance with the provisions of the
Financial Reporting Act 2013 and the Financial Market Conducts Act 2013, the Group is an FMC Reporting Entity.
These interimcondensedconsolidated financial statements comply with NZ IAS 34 InterimFinancial Reporting and IAS 34 InterimFinancial
Reporting and should be read in conjunction with the consolidated financial statements for the year ended 31 March 2022.
Theseinterimcondensedconsolidatedfinancial statementshavebeenpreparedonagoingconcernbasisinaccordancewithhistoricalcost
concepts, as modified by the revaluation of certain assets and liabilities as identified in the accounting policies below.
The presentation and functional currency used by the Group is New Zealand dollars. In presenting amounts in the interim condensed
consolidated financial statements these amounts have been rounded to the nearest dollar.
TheaccountingpoliciesappliedbytheGroupareconsistentwiththoseappliedanddisclosedinthepreviousfullyearconsolidatedfinancial
statements and methods of computation.
General Capital Limited ("the Company") is incorporated and domiciled in New Zealand. General Capital Limited is registered under the
Companies Act 1993.
General Capital Limited is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The interim condensed
consolidated financial statements presented here are for General Capital Limited and its subsidiaries (together "the Group").
The Group is a for profit entity. The Group's principal activities are:
- Finance (deposit taking and mortgage lending);
- Research and advisory (listing and capital management).
There are a number of significant accounting treatments which include complex or subjective judgments and estimates that may affect the
reported amounts of assets in these interim condensed consolidated financial statements. Estimates and judgments are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
An explanation of the judgments and estimates made by the Group in the process of applying its accounting policies, that have the most
significant effect on the amounts recognised in the condensed consolidated financial statements, are set out below.
9

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
4.2 Applicability of the going concern basis of accounting
Cashflow forecast and going concern
4.1 Increased level of inherent uncertainty in the significant accounting estimates and judgments arising from the ongoing global
pandemic of coronavirus disease 2019
The current global pandemic of the novel coronavirus disease 2019 (‘COVID-19’) is still an evolving situation, along with the cessation of
COVID-19 related government support, rising interest rates, rapidly rising inflation, skills shortages, and challenging international conditions,
global supply chain disruptions, and the flow on effects from the conflict between Ukraine and Russia and European geopolitical uncertainty,
which is having a significant impact on energy prices, as well as financial markets across the globe. The ongoing COVID-19 pandemic, current
adverse macro and micro economic conditions and adverse global events mentioned have lowered overall economic activity and confidence
is resulting in significant volatility and instability in financial markets and economic uncertainty. Consequently, there has been an increase in
the level of inherent uncertainty in the critical accounting estimates and judgements applied by Management in the preparation of these
financial statements. As at the date of the signing of these financial statements, all reasonably known and available information with respect
to the COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events has been taken into
consideration in the critical accounting estimates and judgements applied by Management, and all reasonably determinable adjustments
have been made in preparing these financial statements.
As a result of the pandemic, the Group anticipates that lowered levels of economic activity and confidence will continue for at least the short
to medium term and may result in increased business failures and unemployment levels in New Zealand. However, currently the economic
activity is considerably stronger than expected. Consequently, the Group has concluded that there has been an increase in the level of
inherent uncertainty in the significant accounting estimates and judgements applied by Management in the preparation of these financial
statements (refer note 4.2 and 4.3).
These financial statements have been prepared based upon conditions existing as at 30 September 2022 and consider those events occurring
subsequent to that date that provide evidence of conditions that existed at the end of the reporting period. As the outbreak of the COVID-19
pandemic occurred before 30 September 2022, its impacts are considered an event that is indicative of conditions that arose prior to
reporting period. Accordingly, as at the date of signing these financial statements, all reasonably known and available information with
respect to the ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events has been taken
into consideration in the critical accounting estimates and judgements applied by Management (refer note 4.2 and 4.3 below) and all
reasonably determinable adjustments have been made in preparing these financial statements.
Whilst the COVID-19 pandemic, Global Inflation, Supply Chain Disruption andPolitical instability and measures implemented havelowered
overalleconomicactivityandconfidence(describedabove),ManagementhaveassessedanddeterminedthattheGroup’sapplicationofthe
going concern basis of accounting remains appropriate.
The Group has responded to the above economic conditions in the following ways:
- Undertook an analysis of its forecast cashflows to evaluate of the appropriateness of the Group’s continued application of the going
concern basis of accounting.This forecastcashflows tookinto considerationthe Group’s expectation of the impactof the pandemic onits
earnings, cash flow and financial position.
-Assessedthedirectandindirectfinancialimpactsofthepandemiconthecarryingvalueofreportedamountsofassets,liabilities,revenues
and expenses.
- Implemented and enacted appropriate health and safety responses.
When preparing the 31 March 2022 consolidated financial statements, the Group determined that based on the existing pandemic and
economic conditions in New Zealand, the Group expected favourable trends to continue including:
1.Term deposit reinvestment rates to continue at the averages of 70-80%.
2.New term deposit investments to continue growing.
3.Loans will be repaid on or close to the maturity date (the exception of loans rolled over in line with the Group's lending policies).
4. No significant reduction in loan security values is anticipated, however Management recognises that given the current adverse macro and
micro economic conditions and adverse global events, the resulting increases in interest rates and inflation, in particular could have an
impact on loan security values. As a result, Management have performed sensitivity analysis, factoring in a 25% drop in property values (as
described further in the note).
5. No significant reduction of the net interest margin (the difference between lending and term deposit liabilities) in the event of the Reserve
Bank of New Zealand (RBNZ) increasing the official cash rate due to elevated inflation rates which could lead to a potential increase in cost of
term deposit liabilities.
6.The research and advisory cash generating unit to continue generating positive cash flows.
10

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 4: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
Direct and indirect financial impacts of the pandemic on the carrying value of reported amounts of assets and liabilities
TheGrouphasperformedconsistentlywiththeexpectedtrendsassumedinpreparingthe31March2022financialstatementsgoingconcern
consideration. This is detailed further below:
1) The Group expected term deposit reinvestment rates to continue at the average of 70-80%. Actual average reinvestment rate was 73% for the
six months ended 30 September 2022.
2) The Group expected new term deposit investments to continue growing. Actual new term deposit investments were an average of $5.1m per
month for the six months ended 30 September 2022 (Actual new term deposit investment was an average of $3.3m per month for the full year
ended 31 March 2022).
3) The Group expected loans to be repaid on or close to their maturity date (except for loans rolled over in line with the Group’s lending
policies). The Group’s lending activity has increased and accordingly the loan book has grown to a new record high level of $102.4m as at 30
September 2022 (31 March 2022: $80.9m). This increase in the loan book was funded by growth in term deposits. The growth in the loan book
has resulted in increased profitability.
Loansinarrearsincreasedto$10.5masat30September2022from $2.6mmillionasat31March2022.Ofthese,thearrearsfor $4.8mof
loanswereuptodatewithintwoweeksand$0.7mofloanswereuptodatewithinfourweeks.At30September2022therewere$2.9mof
loans past due by greater than 90 days (up from $0.5m at 31 March 2022). There were no loan write-offs in the 6 months ended 30
September 2022 (March 2022: $Nil). Note that loan book has increased by 26.5% for the six months ended 30 September 2022.
4)The Group expected no significant reduction in loan security values. The September 2022 monthly property report dated 12 October 2022
published by the Real Estate Institute of New Zealand (REINZ) showed that the median price for residential property had increased by 2.0%
nationally from September 2021 to September 2022, however the REINZ House Price Index dropped by 8.1% nationally year on year. As at 30
September 2022 Management have performed sensitivity analysis, factoring in a 25% drop in property values (as described further in the
note).
5)The Group expected no significant reduction of the net interest margin. For the six months ended 30 September 2022 the Group
experienced an increase in the net interest margin due to increases in interest rates earned on loans compared to the interest rates paid on
term deposits.
6)The Group expected the Research and Advisory Cash Generating Unit to continue generating positive cash flows. For the six months
ended 30 September 2022 Research and Advisory Cash Generating Unit has generated positive cash flows.
Based on the current economic conditions in New Zealand, the Company currently expects the following trends:
1.Term deposit reinvestment rates to be at a slightly lower rate of 65-75%.
2.Total term deposits to continue growing.
3.Loanswillberepaidonorclosetotheirmaturitydate(withtheexceptionofloansrolledoverinlinewiththeGeneral FinanceLimited’s
lending policies).
4.Propertyvalues to continue toreduce.Managementwill targetloans withlowerloanto valuationratio.Managementhave performeda
sensitivity analysis, factoring in a 25% drop in property values (as described further in the note). Management will perform quarterly
sensitivity analysis factoring in a 25% drop in property values.
5. A plateauing of the net interest margin (the difference between lending and term deposit liabilities) and a gradual reduction for the
balance of the year.
6.The research and advisory cash generating unit to continue generating positive cashflows.
DuringthereportingperiodGeneralFinanceLimited(thesubsidiaryoftheCompany)hashadanupgradeofitsCreditRatingforBB-witha
stable outlook to BB- with a positive outlook.
Accordingly,Managementhaveassessedanddeterminedbasedonforecastspreparedforgreaterthan12monthsfromthedateofsigning,
that the Group’s application of the going concern basis of accounting remains appropriate.
Consistent with 31 March 2022 disclosures, there have been no material direct or indirect impacts on the reported amount of assets and
liabilities. Refer to note 4.3 below for further information on expected credit losses on loans receivable.
11

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 4: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
4.3 Allowance for expected credit losses
*ECL - Expected Credit Losses
Ininstanceswheretheprobabilityofdefaulthasincreasedsignificantly(asignificantincreaseincreditrisk),orwheretheloanisindefault,
theexpectedcreditloss(orlossgivendefault)maynotincreasesignificantlyduetotheGroup’slendingcriteriawhichprohibitslendingwhen
theloantovaluationratio(LVR)**exceeds75%.ThismeansingeneralthattheGroupexpectsthatthepresentvalueofexpectedcashflows
fromaloanindefaulttoapproximatethecarryingvalueoftheloanpriortothedefaultevent,exceptincaseswheretheLVR**hasincreased
considerably due to a reduction in the security property valuation or a significant increase in the loan balance.
Management regularly reviews and adjusts its ECL* estimates, judgements, assumptions, and methodologies as data becomes available.
Changes in these estimates, judgements, assumptions, and methodologies could have a direct impact on the level of credit provision and
credit impairment charge recorded in the financial statements (refer Note 7 Loan Receivables).
If the 12-month ECL* rate for loans without a significant increase in credit risk increased/(decreased) by 0.2% higher/(lower) as at 30
September 2022, the loss allowance on finance receivables would have been $197,412 higher/(lower) (March 2022: $158,258
higher/(lower)).
If the lifetime ECL* rate for loans with a significant increase in credit risk and credit impaired loans increased/(decreased) by 1.0%
higher/(lower) as at 30 September 2022, the loss allowance on finance receivables would have been $36,754 higher/(lower) (March2022:
$17,890 higher/(lower)).
**LVR - Loan to Valuation Ratio
Ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events on loan receivables /
expected credit losses
Ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events have impacted negatively on
some borrowers’ ability to make their payments as they fell due, this included:

1)Lending insƟtuƟons increasing their processing Ɵmes

2)DifficulƟes in markeƟng properƟes

3)DifficulƟes in proving borrowers future income

4)Delays in supply chains

5)Delays in the council approvals

6)The availability of funding for potenƟal purchasers of the properƟes the Group has security over.
Significant increase in credit risk
Expectedcreditlosses(‘ECL’)*aremeasuredasanallowanceequalto12-monthECL*,orlifetimeECL*forassetswithasignificantincrease
in credit risk or in default or otherwise credit impaired. In assessing whether the credit risk of an asset has increased significantly, the
Companyconsidersitshistoricallossexperienceandadjustthisforcurrentobservabledata.Thisdataincludesanypaymentdefaultsbythe
borrower,knownorexpecteddefaultsbytheborroweronsimilarobligations(otherloans),uninsureddeteriorationofthesecurityproperty
and any changes in the borrowers circumstances which could impact on their ability to repayeither interestor principal amounts on their
due date. The Company also considers changes or forecast changes to macroeconomic factors including property prices, unemployment,
interest rates, gross domestic product and inflation.
Calculation of loss allowance
When measuring ECL* the Group uses reasonable and supportable forward looking information, which is based on assumptions for the
future movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss
arising on default. It is based on the difference between the contractual cash flows due and those that the Group would expect to receive,
taking into account cash flows from collateral and integral credit enhancements. Probability of default is an estimate of the likelihood of
default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.
The ECL* is calculated on an individual loan basis though a combination of the assessed lifetime credit default and probability default
(referred to as expected loss factor) to the loan balance. The expected loss factor is determined from the Group historical loss experience
data. Historical loss experience data is reviewed by management and adjustments made to reflect current and forward looking economic and
credit conditions. In addition, management recognise that a certain level of imprecision exists in any model used to generate risk grading and
provisioning levels. As such an adjustment is applied for model risk.
12

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 4: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
4.4 Impairment analysis of goodwill and other indefinite life intangible assets
The highest loan to valuation ratio (LVR)** of the Group’s loan book as at 30 September 2022 was 69.8% (March 2022: 70.6%) and the
weighted average LVR of the loan book was 55.2% (March 2022: 55.3%), based on loan security valuations on origination of the loan.
AccordingtoasensitivityanalysisperformedonthepropertysecurityvaluationsunderlyingtheGroup’sloanreceivablesasat30September
2022 (factoring in selling costs and time value of money):
1)A 25% drop in residential property values would result in losses of $0 – $50,000 (March 2022: $0 – $50,000).
2)A 25% drop in commercial property values would result in no loan losses (March 2022: $nil).
Theabovesensitivityanalysisfactorsintheexpectedsellingcostsofthepropertyaswellasthetimevalueofmoneyovertheexpectedtime
to sell (or to refinance)the property(expected tobe nogreater thansix-months basedon theGroup’s experience).The sensitivityanalysis
does not factor in potential increases in underlying security value since the origination of the loan.
Expected credit losses:
1)BasedonthehistoryoftheGroup'sloanbookoverthelastnineyears,theaverageannualwrite-offsasapercentageoftheaverageloan
receivable balance over the same period was less than 0.10%. This would be an appropriate basis for 12-month expected credit losses in
‘normal’ economic conditions.
2) The Group recognises that New Zealand’s economic forecast for the next 12 months is uncertain due to the impacts of the Ongoing COVID-
19 pandemic, currentadverse macro and micro economic conditions andadverse global events as described above.As a result, theGroup
hasconcludedthattheprobabilityofdefaulthasincreased.HoweverduetotheCompany’swellsecuredloanbook(asdescribedabove),the
loss givendefaultandexpectedcredit losses have increasedbut notbya material amount. As such, the Group has determined that0.25%
(March 2022: 0.25%) of the gross loan balance is a more appropriate expectation of losses for the next 12 months.
3) Lifetime ECL’s* for loans with a significant increase in credit risk and for loans in default have been calculated based on the Group’s
expectations for discounted net cash flows from the respective loan receivables over the expected remaining life of the loans in light of
ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events.
The carrying value ofgoodwill andindefinite life intangibleassets (including licences) are assessed atleastannually toensurethatitisnot
impaired. With regard to Goodwill and Licences, performing this analysis requires management to estimate future cash flows to be generated
by thecash-generating unit, which entails making judgements, including theexpected rate of growthof revenues and expenditures, assets
and liabilities, and the resulting cashflows. Judgements also need to be made about the appropriate discount rate to apply when valuing
futurecashflows.Asensitivityanalysisperformed bythe Grouphas highlightedthatthecarrying valueof theGoodwill andotherassetsin
the research and advisory CGU*** are highly reliant on the achievement of revenue forecasts from advisory projects.
ImpactofongoingCOVID-19pandemic,currentadversemacroandmicroeconomicconditionsandadverseglobaleventsonimpairment
analysis of goodwill and other indefinite life intangible assets
Whencompletingtheimpairmentanalysisofgoodwilland otherindefinitelifeintangible assets,the Grouphas takeninto considerationall
reasonably known and available information with respect to the ongoing COVID-19 pandemic, current adverse macro and micro economic
conditions and adverse global events pandemic (as described in note 4.2).
Expected impact on cash-generating units
1.Finance CGU*** - The forecasted cash flows used in the impairment analysis done on CGU as at 31 March 2022 factored in the expected
impacts of ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events. Notwithstanding
the impacts of the above, the results of the model showed that there was still significant headroom in the unit. The Group believes that this
remains true for Finance CGU as it performed better than forecast for the six months ended 30 September 2022 and therefore the Group can
rely on the result and does not need to impairment test as at 30 September 2022.
2.Research and Advisory CGU*** - The forecasted cash flows used in the impairment analysis done on CGU as at 31 March 2022 factored in
the expected impacts on ongoing COVID-19 pandemic, current adverse macro and micro economic conditions and adverse global events on
the probability of sourcing advisory projects, the project milestones and the impact on timing of cashflows. Notwithstanding the impacts of
the above, the results of the model showed that there was still headroom in the unit. In the six months ended 30 September 2022, the CGU
has achieved its forecast cashflows, however due to higher interest rates and the changing market the Group has decided to test the carrying
value of Goodwill and Licences as at 30 September 2022. Testing resulted in an impairment of $250,154 to the CGU***. Further information
on the impairment analysis, assumptions and sensitivity analysis can be found in note 8.
*ECL - Expected Credit Losses
**LVR - Loan to Valuation Ratio
***CGU - Cash Generating Unit
13

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 5: SEGMENT REPORTING
$$$$$$
4,603,120 38 1,019 4,604,177 - 4,604,177
1,407,775 - - 1,407,775 - 1,407,775
- 45,000 - 45,000 (43,151) 1,849
- 385 - 385 - 385
4,414 - 251,101255,515 (240,301) 15,214
6,015,309 45,423 252,120 6,312,852 (283,452)
6,029,400
(2,233,808) - (1,321) (2,235,129) - (2,235,129)
(343,309) - - (343,309) - (343,309)
- (4,500)- (4,500) 4,315 (185)
3,438,192 40,923 250,799 3,729,914 (279,136) 3,450,777
(183,658) - - (183,658) - (183,658)
(467,145) - (83,261) (550,406) - (550,406)
(46,958)- (30,658) (77,616) - (77,616)
- (250,154) - (250,154)- (250,154)
(715,921)(37,243) (295,351)(1,048,515) 199,474 (849,040)
(566,863) (1,030) 45,018 (522,875) 21,659 (501,216)
1,457,647 (247,504) (113,453) 1,096,690 (58,003)
1,038,687
124,439,496 1,057,886 1,007,109 126,504,491 (168,366)
126,336,125
111,668,118 3,569 282,359 111,954,046 (143,897)
111,810,149
ManagementhasdeterminedtheoperatingsegmentsbasedonthecomponentsoftheGroupthatengageinbusinessactivities,whichhave
discrete financial information available and whose operating results are regularly reviewed by the Group's chief operating decision maker.
The chief operating decision maker has been identified as the Board of Directors. The Board of Directors makes decisions about how
resources are allocated to the segments and assesses their performance.
Three reportable segments have been identified as follows:
-Finance
Deposit taking and mortgage lending.
-Research and Advisory
Provides investment advisory services and produces and sells investment research and publications.
-Corporate and Other
Corporate function and investment activities .
Consolidated
Revenue - interest income
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
6 month period ended 30
September 2022Finance
Research and
Advisory
Other expenses
Corporate and
Other
- Advisory fee revenue
- Yearbook and research
sales
Impairment Expense -
intangible assets
Total Segments
Other income
Total revenue
Interest expense
Eliminations
Fee and commission expense
(finance receivables)
Cost of sales
Net revenue
(Increase) / release in
allowance for expected credit
Personnel expenses
Depreciation and
amortisation
Income tax (expense) /
benefit
Net profit / (loss) after tax
Total Assets
Total Liabilities
14

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 5: SEGMENT REPORTING (CONTINUED)
Acquisition of property, plant and equipment, intangible assets, and other non-current assets*:
$$$$$$
- - - - - -
$$$$$$
2,348,353 2 1 2,348,356 (24,712) 2,323,644
757,224 - - 757,224 - 757,224
- 146,700- 146,700 57,860 204,560
- 2,263 - 2,263 - 2,263
2,345 - 62,951 65,296 (46,751) 18,545
3,107,922 148,965 62,952 3,319,839 (13,603)
3,306,236
(1,314,233) - (7,959) (1,322,192) 5,038 (1,317,154)
(196,024) - - (196,024) - (196,024)
- (14,670) - (14,670) (5,786) (20,456)
1,597,665 134,295 54,993 1,786,953 (14,351) 1,772,602
(22,401) - - (22,401) - (22,401)
(365,038) (34,717) (111,856) (511,611) - (511,611)
(50,636)- (74,973) (125,609) 46,448 (79,161)
- - - - - -
(407,385) (27,899) (200,876) (636,160) 6,384 (629,776)
(210,617) (20,475) 69,650 (161,442) (10,775) (172,217)
541,588 51,204 (263,062) 329,730 27,706
357,436
80,567,015 1,330,455 1,205,486 83,102,956 (384,749)
82,718,207
72,098,576 49,617 551,442 72,699,635 (372,327)
72,327,308
Acquisition of property, plant and equipment, intangible assets, and other non-current assets*:
$$$$$$
- - 8,374 8,374 - 8,374
*excludes non-current financial instruments
Total Segments Eliminations Consolidated
Corporate and
Other
6 month period ended 30
September 2021FinanceEliminations
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
- Advisory fee revenue
- Yearbook and research
sales
Research and
Advisory
Personnel expenses
Depreciation and
amortisation
Eliminations Consolidated
Acquisitions
Cost of sales
Net revenue
Total Segments
Total Liabilities
Research and
Advisory
Interest expense
Fee and commission expense
(finance receivables)
Other income
Total revenue
Revenue - interest income
Acquisitions
6 month period ended 30
September 2022Finance
Research and
AdvisoryConsolidated
Corporate and
Other Total Segments
(Increase) / release in
allowance for expected credit
Income tax (expense) /
benefit
Impairment Expense -
intangible assets
Other expenses
Net profit / (loss) after tax
Corporate and
Other
Total Assets
6 month period ended 30
September 2021Finance
15

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 6: EARNINGS PER SHARE
SepSep
20222021
CentsCents
0.49 0.22
0.49 0.22
Basic earnings per share
$$
1,038,687
357,436
1,038,687
357,436
NumberNumber
212,657,496
163,010,391
212,657,496
163,010,391
NOTE 7: LOAN RECEIVABLES
SepMar
20222022
$$
First mortgage advances
102,381,393 80,918,034
Less deferred fee income and expenditure
(838,892) (688,078)
Less impairment allowance
(385,961) (202,295)
Net carrying value
101,156,540 80,027,661
Current portion
98,077,317 76,954,475
Non-current portion
3,079,223 3,073,186
101,156,540 80,027,661
Primary loan security
Residential housing
87,174,445 69,125,122
Residential bare land
12,106,119 8,691,870
Commercial property
3,100,829 3,101,042
102,381,393 80,918,034
Loanreceivablesrepresentloansatcommercialinterestrates. Currentloanreceivablesarecontractuallyrepayablewithin12months.Non-
current loan receivables are contractually repayable within 12 months to 3 years.
Basic earnings per share attributable to the ordinary equity holders
At period end there was $1,085,441 in outstanding loan commitments including future capitalised interest (March 2022: $4,812,714).
Diluted earnings per share attributable to the ordinary equity holders
Profit / (loss) attributable to the ordinary equity holders of the Company used in
calculating basic earnings per share:
Profit / (loss) attributable to the ordinary equity holders of the Company used in
calculating diluted earnings per share:
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
Weighted average number of ordinary shares used as the denominator in calculating
diluted earnings per share
16

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 7: LOAN RECEIVABLES (CONTINUED)
Reconciliation of gross loan receivable balance movements through ECL* stages:
Lifetime ECL*Lifetime ECL*
12 month not creditcredit
ECL*impairedimpairedTotal
$$$$
Balance as at 31 March 2021
53,156,615 1,302,341 - 54,458,956
New loan advances
74,835,252 - - 74,835,252
Repayments
(47,073,833) (1,302,341) - (48,376,174)
Transfer to lifetime not credit impaired
(1,301,738) 1,301,738 - -
Transfer to lifetime credit impaired
(487,279) - 487,279 -
Balance as at 31 March 2022
79,129,017 1,301,738 487,279
80,918,034
New loan advances
47,997,373 - - 47,997,373
Repayments
(24,744,998) (1,301,738) (487,279) (26,534,014)
Transfer to lifetime not credit impaired
(728,987) 728,987 - -
Transfer to lifetime credit impaired
(2,946,390) - 2,946,390 -
Balance as at 30 September 2022
98,706,016 728,987 2,946,390 102,381,393
Reconciliation of movements in impairment allowance by stage:
Lifetime ECL*Lifetime ECL*
12 month not creditcredit
ECL*impairedimpairedTotal
$$$$
Impairment allowance as at 31 March 2021
132,773 3,256 - 136,029
New loan advances
231,071 - - 231,071
Repayments
(145,351) (3,256) - (148,607)
Transfer to lifetime not credit impaired
(3,254) 3,254 - -
Transfer to lifetime credit impaired
(1,505) - 1,505 -
Reduction in expected credit losses %
(16,198) - - (16,198)
Impairment allowance as at 31 March 2022
197,536 3,254 1,505 202,295
New loan advances
119,993 - - 119,993
Repayments
(61,568) (3,254) (1,505) (66,327)
Transfer to lifetime not credit impaired
(1,822) 1,822 - -
Transfer to lifetime credit impaired (collectively assessed)
(7,366) - 7,366 -
Transfer to lifetime credit impaired (individually assessed)
- - 130,000 130,000
Impairment allowance as at 30 September 2022
246,773 1,822 137,366 385,961
In instances where the probability of default has increased significantly (a significant increase in credit risk), or where the loan is in default ,
the expected credit loss (or loss given default) may not increase significantly due to the Group’s lending criteria which prohibits lending whe n
the loan to valuation ratio (LVR)** exceeds 75%. This means in general that the Group expects that the present value of expected cash flows
from a loan in default to approximate the carrying value of the loan prior to the default event, except in cases where the LVR** has increased
considerably due to a reduction in the security property valuation or a significant increase in the loan balance.
The LVR** of loans with a significant increase in credit risk or in default was in a range of 19.1% - 66.0% as at 30 September 2022 (65.1% -
68.2% as at 31 March 2022), based on the security property valuation at origination.
$2.9m of Lifetime ECL* Credit Impaired loans are made up of 2 loans. Both have first mortgages. Enforcement actions are taken, full recover y
is expected from either loan.
*E CL - Expected Credit Losses
**LVR - Loan to Valuation Ratio
17

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 8: INTANGIBLE ASSETS
Bartercard
Trade
GoodwillLicencesDollarsSoftwareTotal
$$$$$
Year ended 31 March 2022
Opening net book amount
2,350,730 277,000 292,767 5,868
2,926,365
Additions
- - 30,020 -
30,020
Disposals
- - (32,439) -
(32,439)
Amortisation and Impairment charge
- - - (5,230)
(5,230)
Closing net book amount
2,350,730 277,000 290,348 638 2,918,716
At 31 March 2022
Cost
2,350,730 277,000 290,348 70,293 2,988,371
- - - (69,655) (69,655)
Net book amount
2,350,730 277,000 290,348 638 2,918,716
Bartercard
Trade
GoodwillLicencesDollarsSoftwareTotal
$$$$$
Period ended 30 September 2022
Opening net book amount
2,350,730 277,000 290,348 638
2,918,716
Additions
- - - -
-
Disposals
- - (21,436) -
(21,436)
Amortisation and Impairment charge
(250,154)
- - (509)
(250,663)
Closing net book amount
2,100,576 277,000 268,912 129 2,646,617
At 30 September 2022
Cost
2,350,730 277,000 268,912 70,293 2,966,935
(250,154) - - (70,164) (320,318)
Net book amount
2,100,576 277,000 268,912 129 2,646,617
Impairment testing for cash-generating units (CGU)* containing Goodwill and Licences:
SepMar
20222022
Goodwill$$
Allocated to the finance CGU*
1,323,729 1,323,729
Allocated to the research and advisory CGU*
776,847 1,027,001
2,100,576 2,350,730
Licences with an indefinite useful life
Allocated to the finance CGU*
247,000 247,000
Allocated to the research and advisory CGU*
30,000 30,000
277,000 277,000
Accumulated amortisation and impairment
Accumulated amortisation and impairment
The aggregate carrying amounts of goodwill and indefinite life licenses are outlined above. Goodwill primarily relates to growth expectations,
expected future profitability and the workforce of the CGU's*. The Group have assessed that there is no foreseeable limit to the period of
time over which the goodwill and licenses are expected to generate net cash inflows for the Group and as such they have been assessed as
having an indefinite useful life.
The Group's indefinite useful life intangible assets have been tested for impairment at least annually and were last done as at 31 March
2022. Impairment of goodwill cannot be reversed in subsequent years. No impairment had been recognised in the year ended 31 March
2022.
The Group has decided that given the performance of the Finance CGU* against the forecast in the period ended 30 September 2022 and the
headroom available at the time last testing had been done, that there is no need for an extra testing as at 30 September 2022.
The Group has decided that the indefinite useful life intangible assets of the Research and Advisory CGU* have to be tested as at 30
September 2022 due to increases in the applicable interest rates, expectations of the cashflow forecast, unfolding changes in the market
affecting Research and Advisory CGU* and the level of headroom that was available as at 31 March 2022.
*CGU - Cash Generating Unit
18

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 8: INTANGIBLE ASSETS (CONTINUED)
SepSept
20222021
Impairment$$
Impairment expense - Goodwill
250,154 -
Research and Advisory CGU*
Key assumptions used in value-in-use calculations
30 September AssumptionsNet Revenue
Net Revenue
Growth Rate
Expenditure
Working Capital
Movements
Pre-tax FCFF**
Actual 30 September 2022
263,024 (150,721) 9,800 122,103
Forecast 2023
319,206
21.4%
(146,548) - 172,659
Forecast 2024
381,100
19.4%
(163,545) - 217,555
Forecast 2025
393,485
3.2%
(168,860) - 224,625
Forecast 2026
404,306
2.8%
(173,504) - 230,803
Forecast 2027
415,828
2.8%
(177,237) - 238,591
Terminal growth beyond year five
2.0%
Pre-tax discount rate23.3%
31 March 2022 AssumptionsNet Revenue
Net Revenue
Growth Rate
Expenditure
Working Capital
Movements
Pre-tax FCFF**
Actual 31 March 2022 year
2
356,395 (176,094) 39,362 219,663
Forecast 2023
285,300
-19.9%
(165,838) - 119,462
Forecast 2024
404,100
41.6%
(161,250) - 242,850
Forecast 2025
406,238
0.5%
(158,612) - 247,626
412,331
1.5%
(155,992) - 256,339
418,516
1.5%
(157,461) - 261,055
1.5%
17.4%
$250,154 of impairment has been recognised in the period ended 30 September 2022 for the Research and Advisory CGU* as its Carrying
Amount of $1,304,471 was greater than the Recoverable Amount of $1,054,317 established via value-in-use methodology.
The key assumptions used in the calculation of value-in-use for Research and Advisory CGU* are:
1)Net Revenue Expectations through the forecast period
2)Expenditure Expectations through the forecast period
3)Discount rates
4)Growth rates used to extrapolate cash flows beyond the forecast period
For the purposes ofthe forecastmanagement believes that giventhe service based nature of theCGU*, impacts of Total Assets andTotal
LiabilitiesandWorkingCapitalMovementswouldbeimmaterialonestablishingpre-taxFreeCashflowstotheFirm("FCFF").Thetablebelow
sets out the key assumptions for Research and Advisory CGU*:
Forecast 2026
Forecast 2027
Terminal growth beyond year five
Pre-tax discount rate
*CGU - Cash Generating Unit
**FCFF - Free Cash flows to the Firm
19

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 8: INTANGIBLE ASSETS (CONTINUED)
Net Revenue
Net Revenue is calculated as a gross revenue less forecast 10% direct commission for the works done based on historic trends.
Forecast Revenue consists of :
1)Debt Restructuring Revenue - Group is anticipating that Capital Markets will need more professional advice on the structure, this is
backed up by an increasing demand for the service. Group is expecting to perform 4 projects per annum in the forecast period based on the
current trends.
2)Brokerage Revenue based on the existing signed mandate - management believes that spreading the revenue over 5 years is reasonable
due to incidental nature of the project.
3)Capital Raising/Listing/Structuring Revenue - Group is forecasting to secure a project every 2 years, associated cashflows are spread out
over 2 periods based on the most recent historic experience. With economic downturn the Group is anticipating more restructuring projects
of the listed companies especially where listed businesses are exhausted. Furthermore, The Group believes that the economy is going through
industry rationalisation which could lead to opportunities of acquisition and takeover.
4)Other Income/Commissions Revenue - incidental ad hoc income based on historic trends.
*CGU - Cash Generating Unit
Net Revenue Growth
For the period ended
30 September 2022 the Group had experienced a lower level of activity due to staff turnover and allocation of
resources away from IRG, especially towards Finance CGU* which is experiencing a significant growth. The Group is focused on getting more
resources allocated to IRG projects from 1 April 2023. The Group is now bigger in size and has further secured additional funding via share
placements. The funds are planned for an increase in senior staff across the Group. The Group now also has more directors which increase s
the referral
pool that Group is planning to actively use for project work. Further to the above explanations The Group is focused on obtainin g
more Listing/Capital Raising/ Restructuring projects and is experiencing demand in debt structuring/brokerage type engagements.
Inflationary factor has been allocated to Revenue at 5% for the Forecast 2023; 4% for the Forecast 2024; 3.25% for Forecast 2025; 2.75% fo r
the Forecast 2026 and 2.5% for the Forecast 2027.
Expenditure
The Group is expecting expenditure to stay in line with historic trends, normalised for unusual/one off events. Most of these form part of th e
Group recharges based on resources allocated. Salaries and Wages are driven by the project revenue and labour allocations required .
Inflationary factor has been allocated to Expenditures at 5% for the Forecast 2023; 4% for the Forecast 2024; 3.25% for Forecast 2025 ;
2.75% for the Forecast 2026 and 2.5% for the Forecast 2027. It is further estimated that staff will become more efficient with time due to
project experience.
Pre-tax discount rate
The discount rates represent the current market assessment of
the risks specific to the Research and Advisory CGU*. The discount rat e
calculation is based on the industry segment the CGU* is engaged in, and is derived from its weighted average cost of capital. The weighte d
average cost of capital takes into account both the cost of debt and equity, however for the purposes of September 2022 testing we put
target Equity to Capital of 100%.
The cost of equity is derived from the expected return on investment by the Group’s investors using th e
capital asset pricing model allowing for unsystemic risk adjustments. Segment-specific risk is incorporated
by applying individual beta factors .
The beta factors
are evaluated based on publicly available market data at the time of testing. Adjustments to the discount rate are made in
order to reflect a pre-tax discount rate.
The specific risk premium includes adjustments to the basic Capital Asset Pricing Model inputs to arrive at a risk adjusted cost of equity.
These adjustments include current market factors (other than systemic risks) and asset specific risks. In arriving at specific risk premium
management have considered factors such as:
1)Small Size Risk
2)Key Personnel Dependency Risk
3)Litigation and Regulatory Risk
4)Geographical/Concentration Risk
5) Forecast & Predictability Risk
The uncertainty in the cash flows for future periods has been built into discount rate.
20

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 8: INTANGIBLE ASSETS (CONTINUED)
Terminal growth beyond year five
Sensitivity to changes in key assumptions
AssumptionsChange byChange To
Terminal growth beyond year five
-0.5%
1.5%
Terminal growth beyond year five
-1.0%
1.0%
Terminal growth beyond year five
0.5%
2.5%
Terminal growth beyond year five
1.0%
3.0%
Pre-tax discount rate
1.0%
24.3%
Pre-tax discount rate
2.0%
25.3%
Pre-tax discount rate
-1.0%
22.3%
Pre-tax discount rate
-2.0%
21.3%
Revenue Reduction
-10.0%
Revenue Reduction
-25.0%
Expenditure increase5.0%
Expenditure increase10.0%
Total Assets Total Liabilities Revenue Expenditure FCFE**
40.0%40.7%72.2%78.0%56.5%
10.9%8.2%33.8%29.4%47.3%
9.9%7.4%9.7%10.9%6.6%
9.4%7.1%8.9%7.8%12.0%
8.7%6.5%8.2%7.5%10.1%
2.0%
15.7%
Cashflowsbeyondthefiveyearperiodareextrapolatedusingtheestimatedlongtermgrowthrateof2%whichismidpointoftheReserve
Bank of NewZealandmedium term ConsumerPriceIndex PolicyTargetrange (1%to 3%), with a focus on keeping future average inflation
near the 2% target midpoint. The growth rate does not exceed the long term average for the products, industries or country in which the
CGUs* operate.
Finance CGU*
Pre-tax free cash flows to equity holders (FCFE)** have been forecasted based on growth in the non-bank deposit taking / residential lendin g
business within the current constraints of the licence / trust deed which prohibits the Capital Ratio to go below 8%. The forecasted growth in
net cash flows is driven primarily by the net interest and fee margin from forecasted growth in deposit funding and the loan book. Significan t
expenditure has been incurred since the business was purchased by the Group to ensure that the business has the capacity and resources to
allow for the growth.
Key assumptions used in value-in-use calculations
The key assumptions used in the calculation of value-in-use for Finance CGU* were:
1)Total Assets through the forecast period
2)Total Liabilities through the forecast period
3)Revenue Growth through the forecast period
4)Expenditure Growth through the forecast period
5)Discount rates
6) Growth rates used to extrapolate cash flows beyond the forecast period
24,011
11,716
(21,854)
(11,178)
Headroom/(Impairment)
(80,326)
(40,163)
(382,357)
49,447
(85,942)
(44,933)
104,118
31 March 2022 Assumptions
Year one growth assumptions
Year two growth assumptions
Year three growth assumptions
Year four growth assumptions
Year five growth assumptions
Terminal growth beyond year 5
Pre-tax discount rate
*CGU - Cash Generating Unit
**FCFE - Free Cash flows to Equity Holders
(153,256)
Themostsensitiveassumptionsinthecalculationofvalue-in-usefortheResearchandAdvisoryCGU*isRevenueGrowth;ExpensesGrowth;
Discountrateandlongtermgrowthrate.Thefollowingsummarisestheimpactsofthekeyassumptionschange,withallotherassumptions
remaining constant:
The table below sets out the key assumptions for the Finance CGU* for testing done as at 31 March 2022:
21

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 8: INTANGIBLE ASSETS (CONTINUED)
Total Assets and Liabilities
Revenue
Expenditure
Pre-tax discount rate
The uncertainty in the cash flows for future periods has been built into discount rate.
TotalAssetsaremateriallymadeupofCash&CashEquivalents,BankDepositsandLoanReceivables.TotalLiabilitiesaremateriallymadeup
of Term Deposits as part of the Non Bank Deposit Takers regime. The forecast was based on the Board Approved Budgets. Most recent
historicdatawasreviewedforthetermdepositwithdrawals,topupsandnewdepositstoestimatetrendsofTermDepositsinflowwhichin
turn funded the growth in Loan Receivables. A portion of Term Deposit inflow is kept as Cash/Bank Deposits as per the requirements of
ReserveBank.The40%growthinTotal Assetsand40.7%growthinTotalLiabilitiesfortheyearended31March2023 wasconsistentwith
themostrecentannualgrowthof51%inTotalAssetsand52%inTotalLiabilitiesfortheyearended31March2022duetotheabovestated
reasons. From 1 April 2023 a flat increase of $13m per annum was assumed for Loan Receivable and $10m per annum for Term Deposits.
Revenue is made upofLoan Interest& Penalty Interest, BankDepositInterests andFee Revenue.The primary drivers ofrevenue areLoan
InterestandFeeRevenue.Revenueintotalhasincreasedby64%fortheyearended31March2022,theGrouphasfollowedthetrendinits
forecastfortheyearended31March2023.InterestIncomefortheyearended31March2023wastakenfromtheexistingloancontractsas
at31March2022andextrapolateduntil thematurity ofthe loans.Interestrateonnewloans intheforecastperiodended31 March2023
was based on theweighted average lendinginterestas at 31 March2022 incrementallyincreased on the monthlybasis to account forthe
anticipatedincreasesinOfficialCashRatesetbytheReserveBank.Aflatinterestrateof10.29%wastakenfrom31March2024untiltheend
oftheforecastperiod.FeeRevenuefortheyearended31March2023wastakenfromtheexistingloancontractsasat31March2022and
extrapolated until the maturity ofthe loans.Fee on new loans in the forecast period ended 31 March 2023 were takenover the weighted
averageloantermasatMarch2022ataflatrateof2%.Aflatfeerateof1.5%wastakenfrom31March2024untiltheendoftheforecast
period.
ExpenditureisprimarilydrivenbyInterestExpenseon TermDeposits andPersonnel Expenses.InterestExpenseonTermDeposits isdriven
by thetotal TermDeposits andthe interestrate applicable.Interestratewas incrementallyincreasedeverymonthstartingfromtheactual
weightedaveragetermdepositinterestrateasat31March2022to31March2023toaccountfortheanticipatedincreasesinOfficialCash
Rate set bythe ReserveBank. A flat interestrate of6.26% was taken from 31 March2024 until the endof theforecast period.Personnel
Expenses have been specifically calculated for the year ended 31 March 2023 in line with the anticipated Group structure and applicable
salariesandwages. A yearonyearincreaseof20%wasassumedfortheforecastperiodended31March2024and31March2025and10%
year on year increase was assumed for the forecast period ended 31 March 2026 and 31 March 2027 for Salaries and Wages.
ThediscountratesrepresentedthemarketassessmentoftherisksspecifictotheFinanceCGU*.Thediscountratecalculationisbasedonthe
industrysegmenttheCGU*isengagedinwiththetargetEquitytoCapitalof100%.Thecostofequityisderivedfromtheexpectedreturnon
investmentbythe Group’sinvestors usingthe capitalasset pricingmodel allowingforunsystemicriskadjustments.Segment-specificriskis
incorporated by applying individual beta factors. The beta factors were evaluated based on publicly available market data and specifically
available historic data. Adjustments to the discount rate are made in order to reflect a pre-tax discount rate. The specific risk premium
includes adjustments to the basic Capital Asset Pricing Model inputs to arrive at a risk adjusted cost of equity. These adjustments include
currentmarketfactors(otherthansystemicrisks)andassetspecificrisks.Inarrivingatspecificriskpremiummanagementhaveconsidered
factors such as:
1)Small Size Risk
2)Key Personnel Dependency Risk
3)Litigation and Regulatory Risk
4)Geographical/Concentration Risk
5) Forecast & Predictability Risk
Terminal growth beyond year five
Cash flows beyond the five year period are extrapolated using the estimated long term growth rate of 2% which is mid point of the Reserve
Bank of New Zealand medium term Consumer Price Index Policy Target range (1% to 3%), with a focus on keeping future average inflation
near the 2% target midpoint. The growth rate does not exceed the long term average for the products, industries or country in which the
CGUs* operate.
*CGU - Cash Generating Unit
22

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 9: TERM DEPOSITS
SepMar
20222022
$$
Gross term deposit liability
110,573,061 88,134,579
Less deferred commission expenditure
(102,387) (87,360)
Net carrying value
110,470,674 88,047,219
Contractual repayment terms:
On call
6,731 22,504
Within 12 months
84,820,569 66,407,557
Greater than 12 months
25,643,374 21,617,158
110,470,674 88,047,219
Reconciliation of movement in term deposits
6 months ended 12 months ended
SepMar
20222022
$$
Balance of term deposits at beginning of period88,134,579 57,929,500
Additions30,731,937 39,338,012
Withdrawals(9,074,826) (10,094,058)
Compound interest reinvested781,371 961,125
Balance of term deposits at end of period
110,573,061 88,134,579
NOTE 10: RELATED PARTY BALANCES AND TRANSACTIONS
The Group had dealings with the following related parties during the reporting periods:
Related partyRelationship
Graeme Iain BrownDirector up to 24 March 2022
Donald Frederick HattawayDirector of Subsidiary (General Finance Limited)
Gregory John PearceDirector of Subsidiary (General Finance Limited)
Robert Garry HartDirector of Subsidiary (General Finance Limited)
Rewi Hamid BugoDirector
Gregory Stephen JamesDirector
Brent Douglas KingManaging Director
Huei Min LimDirector
Simon John McCarleyDirector
Paul William ZingelDirector
Michel Developments LimitedA Director is an ultimate beneficiary (shareholder is Bedford Trust)
Belian Holdings LimitedCommon Director - up to 24 March 2022
Bedford TrustA Director is an ultimate beneficiary
Casrom Trustee Company LimitedCommon Director
Romana Benevolent TrustCommon Director of a trustee company
Barter Investments LimitedCommon Director
Borneo Capital LimitedCommon Director
Findex NZ LimitedDirector is a Senior Partner
Greenfern Industries LimitedCommon Director
Cannabis & Bioscience Corporation LimitedCommon Director
Prospect Road Investments LimitedCommon Director
Beaconsfield Nominees LimitedCommon Director
Ellice Tanner Hart LimitedCommon Director
Equity Investment Advisers LimitedCommon Director
Moneyonline LimitedCommon Director
Major shareholders, directors, directors of subsidiaries and closely related persons or entities to them are considered related parties of the
Group.
23

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 10: RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)
Related party receivables:SepMar
20222022
$$
Moneyonline Limited
68 -
68 -
Related party payables:SepMar
20222022
$$
Brent King
1,006 2,078
Equity Investment Advisers Limited
21,273 10,469
Rewi Bugo
15,000
Donald Hattaway
169
Moneyonline Limited
- 644
37,448 13,191
Other related party balances:SepMar
20222022
$$
Term deposits held by related parties
1
4,997,105 6,943,400
SepSep
Transactions with related parties20222021
Related PartyTypeTransaction$$
Expense 372,139 304,879
Expense 109,257 75,108
ExpenseRecharge of expenses 36,992 15,804
Fixed Assets Recharge for the purchase of fixed assets- 6,315
Ellice Tanner Hart Limited ExpenseLegal Fees 690 154
ExpenseRecharge of salary costs 12,467 2,269
ExpenseBrokerage paid 72,661 44,798
ExpenseRecharge of expenses- 246
Contra expense Recharge of salary costs 4,355 5,417
Moneyonline Limited ExpenseRecharge of expenses 23,832 16,381
RevenueLease Income 10,800 16,200
RevenueAdvisory & Capital Raising fees -139,200
Expense
Recharge of expenses
3
2,383 -
2
$22,300 (Sept 2021: $17,000) of the Managing Director's short term remuneration is paid to Moneyonline Limited on behalf of the
Managing Director and accordingly is included in two related party categories above.
3
$2,383 (Sept 2021: $Nil) of the Director's short term remuneration was paid to Michel Developments Limited on behalf of the Director and
accordingly is included in two related party categories above.
The above amounts payable to related parties are unsecured, interest-free and repayable on demand.
1
Includes term deposits held by Key Management Personnel, Directors, Directors of subsidiaries, their families and their controlled entities.
As at 31 March 2022 $2,020,591 of the Term deposits held by related parties has been approved for early withdrawal on 1 April 2022 in
compliance with the General Finance Limited’s ‘early repayment’ terms of offer criteria included in the Company’s Product Disclosure
Statement.
Key Management Personnel
(KMP)
1
Short term Remuneration
2,3
Interest paid or capitalised on term deposits held by
KMP or their family members
Equity Investment Advisers
Limited
Greenfern Industries Limited
Michel Developments
Limited
1
Key Management Personnel (KMP) includes the Company directors, subsidiary company directors, and Chief Financial Officer.
24

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
NOTE 10: RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)
Other related party transactions:
NOTE 11: EVENTS SUBSEQUENT TO REPORTING DATE
On 27 September 2021, the Company issued 8,333,333 shares at 6.0 cents per share under a placement to Borneo Capital Limited.
On 9 November 2022 the Company has signed a written subscription agreement with API No 1 Limited Partnership to issue new shares by
way of two placements. The first placement is to API No 1 Limited Partnership of 86,956,522 new Ordinary Shares at an issue price of NZ
$0.0575 per share. The second placement is to existing shareholder Borneo Capital Limited of 63,960,957 new Ordinary Shares at an issue
price of NZ $0.0575 per share. Both agreements are subject to all necessary shareholder approvals under NZX Listing Rules and the Takeover
Code and Completion of other procedural matters. The API No 1 Limited Partnership agreement is further conditional on the appointment of
an additional non-executive director to the board of the Company and also to the board of General Finance Limited. Most of the capital
raised will be used to increase capital of General Finance Limited. Prior to share placements a dividend is proposed to be issued from General
Finance Limited to its parent company Corporate Holdings Limited, subject to all necessary approvals and procedural satisfactions (March
2022: Nil).
25