Summarised Balance Sheet


	31 March 2005 € m	31 March 2004 € m
Long-term assets
Fixed assets	733	743
Investment in associated company - BAT	2 746	2 454
Other long-term assets	377	381
	3 856	3 578
Net current assets	1 628	2 359
Net operating assets	5 484	5 937
Net cash/(borrowings)	617	(794)
Cash	1 409	186
Bank loans and overdrafts	(633)	(557)
Short-term portion of long-term borrowings	(4)	(359)
Long-term borrowings	(155)	(64)
Other long-term liabilities	(143)	(171)
	5 958	4 972
Equity
Unitholders' funds	5 952	4 968
Minority interests	6	4
	5 958	4 972

At 31 March 2005, the Group's interest in BAT ordinary shares amounted to 18.3 per cent and BAT's market capitalisation, based on 2 137 million ordinary shares in issue, amounted to € 28 992 million (£ 19 935 million). The fair value of the Group's investment in BAT ordinary shares therefore amounted to € 5 292 million. Details of movements in the Group's effective interest in BAT ordinary shares are given in the review of the Group's associated company.

The decrease in net current assets was largely due to the June 2004 settlement of the warrants issued in respect of the Group's preference shareholding in BAT. The warrants were exercised by holders in June 2004, resulting in a net cash inflow to Richemont of € 828 million. Compared to March 2004, inventories increased by 9 per cent to € 1 522 million; finished goods inventories remained stable with the largest increase being in raw materials. Stock rotation marginally increased to 14 months.

At 31 March 2005, net cash amounted to € 617 million. Cash balances were primarily denominated in euros, whereas borrowings were spread across the principal currencies of the countries in which the Group has significant operations, namely, euros, yen, dollars and Swiss francs. Borrowings reflect the financing of net operating assets in the countries concerned.