assets classified as inventory which should have been classified as PPE. 

In response management noted the auditors finding and stated that they would review their policies in order to ensure compliance with IAS 16. 

## 121. Banyana Limited 

The financial statements of Banyana Limited for the financial year ended 30 June 2017 were audited by Messers RSM Botswana, Certified Auditors, who were appointed by the Board. 

## 2.0 Accounts 

## 2.1 Audit Opinion 

In the opinion of the auditors: 

The annual financial statements presented fairly, in all material respects, the financial position of Banyana (Proprietary) Limited as at 30 June 2017, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards. 

## Emphasis of matter 

Without qualifying their opinion, the auditors drew attention to Note 24 of the financial statements which discloses the change in business model of the company from provision and marketing of quality slaughter cattle, livestock and rangeland management to land sub-leasing. 

## 2.2 Financial Results 

During the financial year under review, Banyana Limited recorded a loss of P685 267 before an adjustment of available for sale financial assets of P81 510, compared to a loss of P3.06 million recorded in the previous year. The improvement in results was attributable to a 95% reduction in cost of sales from P2.29 million in the previous year to P110 729 in the year under review. A further reduction of 39% was realised in other operating expenses from P5.16 million in the prior year to P3.16 million in the year under review. On the other hand, revenue decreased by 43% from P2.60 million in the previous year to P1.48 million in the year under review. The revenue comprises of rental income (79%) and sale of cattle (21%). 

