stamps that they had received from Government for displaying in the company’s philatelic museum. 

In response management noted the finding and stated that they had already engaged an expert to start the process. 

## 3.4 EMS Incoming/Outgoing and SDR Debtors 

The auditors noted that there was no matching of the receipts and invoices for advance Money Orders, EMS incoming/outgoing and SDR accounts which resulted in inappropriate ageing of the accounts balances and made it difficult to assess and evaluate the allowances for impairment. 

In response management noted the auditors finding and stated that the current system had limitations as transactions were in foreign currency, however, they continued to reconcile manually and the gap was expected to be fully addressed in the new system. 

## 3.5 Stated Capital 

The auditors noted that the stated capital on application for registration of a public company filed on the 5 August 2015 was P100. The same amount of stated capital was reflected in the annual returns filed on 9 March 2018. However, the stated capital per the ledger and the financial statements for the prior year and the current year was stated as P38 700 421, resulting in a difference of P38 700 321. 

In response management stated that in the transition to becoming a company limited by shares the registration was inadvertently done at P100 and the matter was being attended to. 

## 3.6 Manual Intervention between Riposte and Accpac 

The auditors noted that entries relating to inventory from Riposte were manually captured in Accpac thereby increasing the chances for errors to occur and bringing into question the completeness of data captured in the general ledger. 

In response management noted the auditors finding and stated that in the current setup the manual interventions were necessary due to systems inadequacy and that the new Counter Automation and ERP systems would be fully integrated and go live by January 2019. 

