(Proprietary) Limited as at 31 March 2018, and of its financial performance and its cash flows for the year then ended, in accordance with International Financial Reporting Standards. 

## Material Uncertainty Relating to Going-Concern 

Without modifying their opinion, the auditors drew attention to Note 28 on going-concern status in the annual financial statements, which indicated that at 31 March 2018, the company had accumulated losses of P55 881 665 (2017: P43 461 378) and that the company’s total liabilities exceeded its total assets by P24 768 720 (2017: 12 348 433). The company had also incurred a net loss of P12 420 287 (2017: P26 614 851). As stated in Note 28, these events and conditions, along with other matters as set out in Note 28, indicated that a material uncertainty existed that may cast significant doubt on the company’s ability to continue as a going concern. 

The going-concern of the company depends on the amalgamation with Botswana Postal Services Limited, and that the shareholder, Botswana Postal Services Group Limited, had agreed unconditionally and irrevocably to provide the new amalgamated entity with adequate financial support. 

## 2.2 Financial Results 

During the financial year under review, the company recorded a total comprehensive loss of P 12.42 million, compared to P 26.61 million in the previous year as explained in the above paragraph. Income declined by 10% from P99.84 million in the previous year to P89.74 million in the year under review. Expenditure on the other hand declined by 19% from P126.45 million in the previous year to P102.16 million in year under review. The major contributors to expenditure were staff cost of P38.94 million (38%), cost of sales of P26.92 million, bad debts of P17.02 million, repairs and maintenance of P2.93 million, lease rentals of P2.13 million, and finance costs of P2.06 million. 

## 2.3 Working Capital 

As at 31 March 2018, the working capital position of the company showed current assets of P11.26 million and current liabilities P50.73 million resulting in a net current liabilities position of P39.47 million. 

Current liabilities included loan from shareholder of P10 million and payroll accruals of P8.43 million. 

