Quick Facts About BotswanaPost · Quick Facts About BotswanaPost • BotswanaPost was established...
Transcript of Quick Facts About BotswanaPost · Quick Facts About BotswanaPost • BotswanaPost was established...
Quick Facts About BotswanaPost
• BotswanaPostwasestablishedbyParliamentundertheBotswanaPostalServicesActNo.22of1989.
• BotswanaPostismandatedtoprovideuniversalpostalservicesforeveryonecountrywide
• BotswanaPosthasapostalnetworkof121PostOfficesand73PostalAgenciescountrywide
• BotswanaCouriers(Pty)Ltdisa100%subsidiaryofBotswanaPost
• Thetargetformaildeliverytoallmajortownsandvillagesisthenextdayandtootherremoteareaswithinthreedays.
• TheproductsandservicesprovidedbyBotswanaPostinclude;
- mailingsolutions
- businesscenters
- moneytransferservices
- expressmailservice(EMS)andparcelservices
- courierandfreightservices
- agencyservices
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Contents
Chairman’s Statement 4
Corporate Governance 10
Performance Highlights 16
Business and Operational Report 17
Annual Financial Statements 27
Contents
Chairman’s Statement
Corporate Governance
Performance Highlights
Business and Operational Report
Annual Financial Statements
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Chairman’s Statement
The 2009/10 financial year closed off at the same time
as the end of my first term as the Chairman of the
BotswanaPost Board of Directors. It gives me great
pleasure therefore to reflect on this period and share
with you the path that we have walked, our experiences
and our aspirations going forward.
We started the year on an uncertain note, following the
world financial crisis. While it was difficult to determine
what the impact of the crisis would be on our business,
there was no doubt that some of our key partners in the
developed world had felt the first ripples of the crisis
and that would inevitably trickle down to us and the
local market in general.
This uncertainty notwithstanding, we adopted an
optimistic stance and set ourselves very challenging targets. In setting these targets
we wanted to accelerate our transformation processes and the implementation
thereof. The year 2009/10 was intended to provide a platform for rapid growth in
the ensuing years, our growth rate hitherto having been at unsatisfactory levels.
In addition to the appointment of new leadership in the previous year, these
ambitious targets would partly be supported by capital injection by the shareholder
and the remainder by borrowings from the market. I am happy to report that we
were able to have access to both sources of funds although shareholder funding came
in at much lower levels than had been expected. To that end, during the year, two
of our four flagship capital projects, the International Mail Exchange Centre and the
Refurbishment of Poso House took off, although the latter commenced at the tail
end of the year. The Business Automation and the Gaborone Central Post Office
Development were pushed forward to the 2010/11 financial year.
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As part of our transformation, we were keen on
establishing a Postbank during this year, which
however depended on strategic direction by the
Shareholder. In December 2009, the shareholder
directed that our operations be merged with those of the
Botswana Savings Bank. Under the leadership of the parent
Ministry and the participation of other key stakeholders,
action towards this merger was initiated in January 2010 with
a completion target of March 2011. As at the close of the year,
the form that the merged entity will take was beginning to take
shape. This development is a source of excitement to us at the
Post as it will serve to propel our aspirations of becoming an Icon of
Excellence. We are very grateful to the shareholder for facilitating
the creation of the Postbank.
The support of the shareholder was a key lever for business growth this year.
Among others, a resolve on the tariff review which was long overdue would
enable us to respond adequately to market imperatives. This was not achieved
during the year, but at the close of the year, common ground had been broken
and all indications were that in the ensuing year, the requisite approvals would
be made for market related tariffs. The pressure of shareholder regulated tariffs
has hitherto stifled business growth. We are thankful to the shareholder for the
position that was taken during the year to engage the Post as a key logistics provider to
reach out to rural communities and Government establishments. This will go a long way
towards promoting self sustenance.
We were not able to achieve the envisaged results of increasing revenues at faster rates
than costs with our revenues remaining flat and the cost base increasing at rates above
inflation. This trend has put tremendous pressure on us to go back to the drawing board
with a view to not only reversing it but achieving the intended results at a much faster
rate to realise our new vision of an Icon of Excellence, which was adopted during the year.
The Icon of Excellence envisions BotswanaPost as a successful and competitive
player in both the local and international market by the year 2013. The thrust of
this strategy will be on growing our people and establishing robust human resources
management structures to enable our whole corporate team to meet the needs of
all our stakeholders.
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In order to enliven our commitment to good corporate governance, we adopted a
Board Charter in November 2009 which will govern our ways of working as the Board
as well as our relationship with both Management and the Shareholder. To that end
among others, we shall be engaging the latter to agree on performance expectations
and targets, which will be formalized in a Shareholder Compact or agreement which
will bind both parties on the agreed inputs and outcomes.
BotswanaPost continues to participate actively in international and regional fora
with a view to ensuring that the policies, regulations and standards adopted for the
postal sector take cognizance of our operating environment, the peculiarities of the
developing world and help us grow towards competitiveness with the developed world.
The road ahead for BotswanaPost remains very challenging. While a lot is expected
from the shareholder in terms of financial support, cognizance is taken of the
competing national needs over dwindling resources. On the other hand, the lending
market is also very cautious because of experiences of the credit crunch. A lot will
therefore be upon us to sharpen our position enough to attract the attention of the
market and to sustain the position from which we take off with our partners.
Despite the challenges, we close the year once again on an optimistic note, given our
strategic aspirations, the continued support of the shareholder and the indications of
a progressive recovery in the world economy.
At the end of the year, two Directors who have served the Board selflessly for
12 and 10 years respectively retired from the Board. We cannot express enough
appreciation to Mr. B. M. S. Letsididi and Mrs. T. Mabutho. The Post will remain
forever indebted to them for their tireless work towards strategically positioning the
Post Office and guiding the business through some of its most challenging times. The
whole Post family and I wish them the very best in their future endeavours.
In November 2009, our parent Ministry changed its structure and was also assigned
a new Minister, Mr. Frank Ramsden. I wish to take this opportunity to both welcome
and assure him our steadfast commitment to growing postal services in Botswana
and more importantly, reaching out to all communities through our vast national
footprint. I also wish to thank the Minister for his and the Ministry staff’s commitment
to the growth of the postal sector.
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BotswanaPost would not realise its objectives without the support of the customer,
the entire business community, the Universal Postal Union, the Southern Africa Postal
Operators Association and other stakeholders. This continued support is much appreciated
and we will continue to nurture the respective partnerships for mutual benefit.
Finally, my appreciation goes to my colleagues on the Board, Management
and Staff for their dedication and hard work during the year. Despite the not
so pleasing year end results, I wish to encourage the entire Post family to
leverage on all the foundations laid so far to propel us to an Icon of Excellence.
Pego Ya Modulasetilo
Ngwaga wa kgwebo wa 2009/10 o wetse gongwe le boloko jwame ja ntlha ja ngwaga tse tharo ke le modulasetilo wa Khuduthamaga ya tsamaiso ya BotswanaPost (BP). Ka jalo go a intumedisa go leba ko morago ke le lekodisa ka tsela e re e tsamaileng mo nakong e, maitemogelo le maikaelelo a rona goya ko pele.
Re simolotse ngwaga ka ketsaetsego, morago ga kwelo tlase ya itsholelo e e neng e amile lefatshe ka bophara. Le fa gone go le thata go itse gore kgwebo e tla amega go le kae, gone go sa belaetse gore dikgwebo tse re dirisanyang le tsone ko mafatsheng a a tlhabologileng, di ne di utlwile manokonoko a ntlha a seemo se, le gore, kwa bofelong, a tla a re ama, le yone itsholelo ya lefatshe la rona ka kakaretso.
Le fa gontse jalo, re ne ra seka ra kgobega marapo, mme ra ipeela dielo tse di kwa godimo, tse di gwetlhang. Mo go direng jalo, keletso ya rona ene ele go fefosa mananeo a go tsisa diphetogo le go tlhabolola ditirelo tsa rona, tota le gone go oketsa maduo.
Mo godimo ga go thapa boeteledipele jo bosha mo ngwageng e e fetileng, re ne re solofetse gore dielo tse re neng re di ipeetse di tla rotloediwa ke dithuso tsa madi go tswa ko Pusong, a okediwa ke a mangwe a dikadimo ko dibankeng tsa mo gae. Mme ke a itumela ka jaana se se ile sa kgonega, le fa thuso ya Puso e ile ya nna ko tlase gona le jaaka re ne re solofetse. Madi a ka kakaretso, a ile a re thusa go simolodisa ditiro tsa botlhokwa tsa tlhabololo ya dikago, ebong madirelo a magolo a dikwalo le dithoto, le paakanyo ya ntlokgolo ya rona, Poso House, le fa e simologile ngwaga o setse o fela. Ditiro tse dingwe tse pedi, ya go tlhabolola mafaratlhatlha a maranyane a kgwebo le ya go aga sesha Poso ya ntlha ya Gaborone, di ile tsa fetisediwa ko ngwageng o o latelang wa 2010/11.
Mo ngwageng o, re ne re ikaeletse go tlhoma lekalana la Banka(Postbank), mme ele gore se se tla laolwa ke ditshwetso dingwe tsa Puso. Erile ka kgwedi ya Sedimonthole
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2009, Puso ya tsaya tshwetso ya go kopanya kgwebo e, le ya Botswana Savings Bank. Tiro ya go rulaganyetsa kopano ya dikgwebo tse pedi tse, e simolotse ka Firikgong 2010 mme e akaretsa banaleseabe botlhe. Maikaelelo ke gore tiro e e bo e wetse ka Mopitlo 2011. Mo bofelong ja ngwaga, megopolo ya gore kgwebo e e tshwaraganyeng e tla nna jang, ene e setse e itshetlela. Re le ba Poso, diphetogo tse di a re itumedisa thata ka jaana di tla re thusa go fitlhelela maikalelo a rona a go nna sekgantshwane sa botswerere le bonokopila jwa kgwebo (an Icon of Excellence). Re leboga Puso fela thata ka go tsaya tshwetso e.
Thotloetso ya Puso ene ele pinagare ya go gola ga kgwebo ya rona monongwaga. Mo go tsotlhe tse dingwe, tshwetso ya go letlelela koketso ya ditlhwatlhwa tsa ditirelo tsa Poso, e e neng e saletse ko morago, e ne e tla a thusa kgwebo ya rona go lepalepana le diphetogo tsa mmaraka wa kgwebo ka kakaretso. Se ga se a ka sa kgonega, mme legale ko bofelong ja ngwaga megopolo e ne e setse e kopana ka dikoketso tse di neng di tlhokafala. Taolo e Puso e nang nayo mo ditlhwatlhweng, e nnile sekgoreletsi mo go goleng ga kgwebo ya rona mo dingwageng tse dintsi. Le fa gontse jalo, re leboga Puso thata ka jaanong e lemoga se, mme ebile e simolotse go dirisa Poso thata go isa ditirelo ko sechabeng, bogolo jang ko metseng ya magae. Se se tla thusa go tshegetsa kgwebo ya rona.
Mo ngwageng o, ga re aka ra fitlhelela maikaelelo a rona a go oketsa letseno la madi, ka ntlha e nngwe re fokotsa ditshenyegelo. Mo boemong ja seo, re bone letseno le lekana le la ngwaga o o fetileng mme ditshenyegelo tsone di gola. Seemo se, se re gwetlha gore re leke maano a go se fetola gore re fitlhelele ko bokgantshwaneng ja botswerere le bonokopila.
Maikaelelo a rona a “an Icon of Excellence” kana, “sekgantswhane sa botswerere le bonokopila” ke go isa kgwebo ya rona ko seemong se re ka iteisanang borathana le dikgwebo tsa mo gae le tsa mafatshefatshe ka ngwaga wa 2013. Bogolo thata re tla bo re itebagantse le go rutuntsha le go godisa dikitso tsa babereki ba rona gore rotlhe re tshwaraganele go direla banaleseabe botlhe ka botswerere, bogolo jang sechaba se se rekang ditirelo le dithoto tsa rona, le Puso, e e solofelang dipoelo.
Re le lekgotla la Khuduthamaga ya tsamaiso ya BotswanaPost, re itlamile go dira tiro ya rona ka boammaaruri, le ka go sala morago ditsamaiso tse di amogelesagang. Jalo he mo ngwageng o, re ne ra dira mokwalo wa tsamaiso ya lekgotla la rona (Board Charter) o gape o tlhalosang sentle gore re tla dirisanya jang le Puso le boeteledipele ja Poso. Mo tsamaong ya nako, re tla eletsa go tsena mo tumalanong le Puso e mo go yone, Puso e tla itlamang ka thotloetso e o tla a re e neelang, le rona re itlama ka maduo a re tla a ntshang. (Shareholder Compact).
Poso e tsweletse ka go nna le seabe mo mererong ya mafatshefatshe le ya SADC, ya ditirelo tsa diposo, maikaleleo e le go tlhomamisa gore ditshwetso tse di tsewang le melawana e e dumalanwang, ga e beele lefatshe la rona le a mangwe a a tlhabologang, ka fa mosing, le gore re kgone go tswelela re itepatepanya le kgaisano le mafatshe a a tlhabologileng.
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Tsela e re e tsamayang e santse e le telele ebile e na le dikgopi ko pele. Le fa re solofela gore Puso e ka re rotloetsa ka mangwe madi, re a itse ebile re lemoga gore Puso le yone e a tlhaelelwa ka jaana gona le mananeo a sechaba a le mantsi a a tlhokang go tsweledisiwa. Ka ntlha e nngwe dibanka le makalana a mangwe a kadimo ya madi, le bone ba huparetse meamuso ya bone ka jaana ga ba ise ba tshepe gore a ruri botsogo ja itsholelo ya lefatshe bo tokafala ka seemo se eleng gore yo o adimang madi o ka kgona go a busa. Se ke kgwetlho mo go rona gore re itshupe gore re kgwebo e e itshetletseng go ka kgatlhegelwa ke dibanka le ba bangwe ba dikadimo.
Le fa ko pele go le bokete, re fetsa ngwaga gape ka tsholofelo ka jaana re betlile tsela ka botswerere, Puso e tsweletse ka go re thusa ebile gape go setse go nale dikai tsa gore itsholelo ya lefatshe e nna botoka.
E rile ngwaga o fela, bakaulengwe ba le babedi ba Khuduthamaga ya tsamaiso ya BotswanaPost ba wetsa tiro ya bone. Rre B.M.S. Letsididi le Mme T. Mabutho ba dirile le rona ngwaga tse lesome le bobedi (12) le lesome (10) ka go latelelana. Mafoko a rona a malebogo a re felela a le tlhaeng, ebile ga re kitla re lebala bonatla, boineelo le bopelotelele jwa bone mo tirong e ba neng ba e dira ya go tlhabolola Poso ka nako tse di neng dile thata. Botlhe ba ba amanang le BotswanaPost le nna, re eleletsa bobedi jo katlego mo matshelong a bone goya ko pele.
Ka Ngwanaatsele 2009, lephata la Puso le le okametseng Poso, le ne la fetolwa go nna tsa Mesepele le Ditlhaeletsanyo, le eteletswe pele ke Tona Frank Ramsden. Ke eletsa go tsaya nako e go amogela Rre Ramsden le go mo tlhomamisetsa gore re le ba Poso, re lomile molomo wa tlase mo maitekong a rona a go tlhabolola Poso le go isa ditirelo ko ntlheng tsotlhe tsa Botswana. Ke eletsa gape go leboga Tona le bodiredi ja gagwe ka kemonokeng e e kana e ba tsweletseng ka go re e efa.
Tse re di kgonneng ngwaga ono ke ka kemonokeng ya bareki ba ditirelo tsa rona, bao ba dikgwebo tse re dirisanyang natso, ba lekgotla la mafatshefatshe la diposo (Universal Postal Union), ba lekgotla la diposo la SADC (Southern Africa Postal Operators Association) le banaleseabe ba bangwe. Re a ba leboga ebile re tla tswelela re dira gotlhe go godisa tshwaragano ya rona.
Ke eletsa gape go leboga badiri ka nna mo Khuduthamageng, Boeteledipele le Babereki ba Poso, go bo ba nkeme nokeng e bile ba dirile ka natla mo ngwageng o. Le fa ntswa maduo a sa nametse, ke eletsa go ba rotloetsa botlhe gore a re diriseng matshego a re setseng re a adile go isa kgwebo ya rona ko seemong sa botswerere le bonokopila (an
Icon of Excellence).
Martin Makgatlhe
Board Chairman
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tsela ka botswerere, Puso e tsweletse ka go re thusa ebile gape go setse go nale dikai
E rile ngwaga o fela, bakaulengwe ba le babedi ba Khuduthamaga ya tsamaiso ya BotswanaPost ba wetsa tiro ya bone. Rre B.M.S. Letsididi le Mme T. Mabutho ba dirile le rona ngwaga tse lesome le bobedi (12) le lesome (10) ka go latelelana. Mafoko a rona a malebogo a re felela a le tlhaeng, ebile ga re kitla re lebala bonatla, boineelo le bopelotelele jwa bone mo tirong e ba neng ba e dira ya go tlhabolola Poso ka nako tse di neng dile thata. Botlhe ba ba amanang le BotswanaPost le nna, re eleletsa
Ka Ngwanaatsele 2009, lephata la Puso le le okametseng Poso, le ne la fetolwa go nna tsa Mesepele le Ditlhaeletsanyo, le eteletswe pele ke Tona Frank Ramsden. Ke eletsa go tsaya nako e go amogela Rre Ramsden le go mo tlhomamisetsa gore re le ba Poso, re lomile molomo wa tlase mo maitekong a rona a go tlhabolola Poso le go isa ditirelo ko ntlheng tsotlhe tsa Botswana. Ke eletsa gape go leboga Tona le bodiredi ja gagwe ka kemonokeng e e kana e ba tsweletseng ka go re e efa.
Tse re di kgonneng ngwaga ono ke ka kemonokeng ya bareki ba ditirelo tsa rona, bao ba dikgwebo tse re dirisanyang natso, ba lekgotla la mafatshefatshe la diposo (Universal Postal Union), ba lekgotla la diposo la SADC (Southern Africa Postal Operators Association) le banaleseabe ba bangwe. Re a ba leboga ebile re tla tswelela re dira gotlhe go godisa tshwaragano ya rona.
Ke eletsa gape go leboga badiri ka nna mo Khuduthamageng, Boeteledipele le Babereki ba Poso, go bo ba nkeme nokeng e bile ba dirile ka natla mo ngwageng o. Le fa ntswa maduo a sa nametse, ke eletsa go ba rotloetsa botlhe gore a re diriseng matshego a re setseng re a adile go isa kgwebo ya rona ko seemong sa botswerere le bonokopila (an
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Corporate Governance
BotswanaPost as a state owned commercial enterprise is accountable to the
shareholder, the Government and the wider public. In recognition of this
responsibility, the Board has committed itself to the highest standards of corporate
governance through a Board Charter which was adopted on the 20th November 2009
and took effect on the 1st December 2009. In the absence of a corporate governance
code for Botswana, the Board has also adopted the King III Corporate Governance
Code for South Africa, as a guiding principle.
In accordance with the Board Charter, the Board will for the first time enter into a
performance agreement with the Shareholder in the next financial year. This will be
supported by a robust Board effectiveness and evaluation process.
Board Structure and CompositionIn accordance with the Botswana Postal Services Act of 1989, the Minister of
Communications and Transport has a duty to appoint a Board of Management
comprising eight non-executive Directors, including the Chairman and one ex-officio
Director, the Director General. In appointing the Directors, the Minister takes into
account the balance of skills, experience, professional and industry knowledge
necessary to realise the corporate mandate of operating and managing postal
services along commercial lines.
Directors are appointed for a period not exceeding four years while the Chairman
is appointed for a three year term. In determining the Directors’ tenure, the
Minister ensures that the tenure of not more than one third of the members expire
in any one year. This is aimed at ensuring business continuity and preservation of
corporate memory.
At the end of the last reporting period, Dr. B.O. Tsheko retired from the Board. He
was replaced by Ms. Shirley Segokgo who was appointed on the 1st April 2009. Mrs. T.
Modungwa, was re-appointed to the Board for another three years with effect from
1st April 2009.
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Board Members
Chairman Mr Martin Makgatlhe
Board Member Mr Bugalo Maripe
Board Member Mr Nathan Kgabi
Appointed 01/07/2010
Vice Chairman Dr Alinah Segobye
Board Member Mrs Tekolo Modungwa
Board Member Mr Polokoetsile P. MotauAppointed 01/07/2010
Board Member Mrs Tsetsele Fantan
Board Member Ms Shirley I.T. Segokgo
Chief Executive Mr Pele Moleta
During the 2010 financial year BotswanaPost bid farewell to board members: Former Vice Chairman Mrs Thembela Mabutho and Mr Bernard M.S. Letsididi
The BotswanaPost board welcome Mr Nathan Kgabi and Mr Polokoetsile Motau
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Executive Management
Chief Executive Pele Moleta
Director Corporate Services Ruth Mphathi
Head Human Resources Courtney Sethebe
Head Internal AuditEnoch Mushango
Head OperationsThapelo Kalake
Head IT & SecurityAhmed Mangera
Head CommunicationsLebogang Bok
Head FinanceSetshedi Botlhole-Mmopi
Head Property and Administration Services
Booster Nkomba
General Manager Botswana Couriers
Leatile Medupe
Head Business Development
Cornelius Ramatlhakwane
Head RetailNed Phatshwane
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Board MeetingsThe Board meets at least four times a year. The role of the Board is to set strategic
direction, development of key policies, approval of budgets and monitoring or
implementation of the approved strategic direction through periodic reporting by
Executive Management. During the year, the Board met seven times.
Board RemunerationThe Board is remunerated at rates prescribed by the Government of Botswana from
time to time. During the year, the remuneration rates were as follows:
Board Chairman - P1050 per sitting
Vice Chairman - P950 per sitting
Directors - P840 per sitting
Board CommitteesThe Board has taken a deliberate position to delegate some of its powers to
designated Committees. Such delegated authority is express and where it has not
been expressed, the Committees recommend the final decision to the Board. This
however does not transfer any of the responsibilities of the Board to the respective
Committees. The Board remains ultimately accountable to the shareholder.
During the year under review, the Board had three Committees. The Chairman sat
on none of these.
Finance and Audit CommitteeThe Finance and Audit Committee comprises a total of four members. The main
function of this Committee is to assist the Board in discharging its duties under
the Botswana Postal Services Act for prudent management of financial matters
and reporting thereon. The Committee continuously reviews reports on the
management of internal controls, risk management and management accounts
and makes the requisite recommendations for approval by the Board.
During the year, the following Directors were on the Committee;
Mrs. T. Mabutho - Chairperson
Dr. A. Segobye - Member
Ms. S. I.T. Segokgo - Member
Mrs. T. M. Modungwa - Member
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Tender CommitteeThe function of the Tender Committee is to advise the Board on strategies and policies
for corporate procurement. The Committee ensures compliance with laid down
rules and procedures for procurement of goods and services required for running
the business and the generation of value for the business out of these processes.
The Committee has delegated financial authority that is reviewed from time to time.
During the year, the following Directors were on the Committee
Mr. B. Maripe - Chairman
Mrs. T. C. Fantan - Member
Dr. A. Segobye - Member
Ms. S. I. T. Segokgo - Member
Human Resources CommitteeThe function of the Human Resources Committee is to advise the Board on Human
Resources policies and strategies, including remuneration and the appointment of
officers to senior management positions.
During the year, the following were on the Committee
Mrs. T. M. Modungwa - Chairperson
Mrs. T. C. Fantan - Member
Mr. B. Maripe - Member
Mr. B. M.S. Letsididi - Member
ComplianceBotswanaPost is committed to ensuring that all the statutory, policy and regulatory
requirements relevant to its business are fully complied with. During the year there
were no issues of non compliance.
Ministerial DirectivesIn September 2009, through dialogue, the then Minister of Communications Science
and Technology directed the Board of BotswanaPost to give a hearing to the
Botswana Postal Services Workers Union, following a petition
that had been presented to her. This was fully
complied with.
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Code of EthicsA code of ethics is due to be borne out of the Board Charter. In the absence of it, the
Board strives at all times to embrace and bring to bear the highest levels of integrity
in corporate decisions.
Going Concern The Board has considered the position of BotswanaPost and is of the opinion that the
organisation shall be a going concern in the 2010/11 financial year.
Board and Board Committee Meeting Attendance
Name BoardFinance & Audit
Committee
Human Resources
Committee
Tender Committee
Meetings Attended
Meetings Attended
Meetings Attended
Meetings Attended
M. M. Makgatlhe 7/7
T. Mabutho 7/7 4/4
B. M. S. Letsididi 3/7 1/4
B. Maripe 7/7 3/4
A. S. Segobye 4/7 4/4 3/4
T. M. Modungwa 5/7 2/4 3/4 3/4
T. C. Fantan 4/7 4/4 3/4
S. I. T. Segokgo 6/7 3/4 2/4
K. P. Moleta 7/7
Internal AuditCharters for the Finance and Audit Committee and Internal Audit have been drawn.
These have been approved by the Executive Management and serve as the authority
for Internal Audit operations pending approval by the Board. These will assist in
ensuring audit independence in line with the King III Report on Good Governance.
An Enterprise Risk Management system has been introduced to ensure coordination
of activities and goal congruence.
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Performance Highlights
Comparison of Revenue vs Expenditure
Total Revenue Total Expenditure
BWP
mBW
P m
Total Assets
BWP
000’
sProfit and Loss
6,4274,476
(2,170) (1,663)
(12,844)-15,000
-10,000
-5,000
0
5,000
10,000
2009/102008/092007/082006/072005/06
120,000
140,000
160,000
180,000
200,000
220,000
240,000
260,000
280,000
300,000
2009/102008/092007/082006/072005/06
80,000
90,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
2009/102008/092007/082006/072005/06
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Business and Operational ReportI am happy to present the business and operational report
of the BotswanaPost Group for the 2009/10 financial year.
The year under review had a transformational theme and
true to this theme, during the year we embarked on a
courageous journey towards excellence. First we adopted
the European Foundation for Quality Management model
to drive our business performance improvement initiatives.
Indeed this was a courageous move as we had to assess our
position as at September 2009 and be willing to share the
results with any of our partners. The results, perhaps not
surprisingly, were poor, but the objective was for them to
shift us out of any comfort zone and face the imperatives
for change. This initiative has been aptly named LEBOA,
‘mushroom’, because we likened ourselves to the humble
‘mushroom’, which starts hardly noticeable and as it grows
towards the surface, blossoms into a beautiful shape,
enough to gratify anyone, both aesthetically and in taste.
This journey continued and as at the end of the year, teams of employees had been
formed to come up with and implement improvement initiatives. These are largely
quick wins that are within reach with little or no financial inputs. The assessment
process will take place at annual intervals, until such time that the highest excellence
standards have been achieved.
The second leg of our journey to excellence was the adoption of our corporate
strategy; “An Icon of Excellence”. Our aspiration is to “To consistently deliver value
for all stakeholders; addressing existing requirements whilst exploiting opportunities
to anticipate future needs.” This strategy puts our stakeholders first, determines and
confirms with them their desired end results, which in turn inform the performance
targets that we must reach for. The strategy was completed towards the end of the
second half of the year and will largely inform our plans and targets for the ensuing year.
18
Financial PerformanceOur targeted performance for this year was going to be driven by foundational
interventions aimed at preparing ground for faster growth in the ensuing years.
Due to a very challenging market environment, inadequate sales resources and
suboptimal tariffs, we were not able to reach our target of a breaking even position.
Revenues across the Group were flat compared to last year and costs grew by 20%,
suffice to say that the cost of sales was contained at similar levels as the previous
year. The growth of administrative costs was driven by salaries where an increase
of 3% was made to the pension contribution to 11% and gratuity payments had to
be made to staff that were converting to permanent and pensionable employment
contracts at higher rates than originally envisaged, depreciation, arising from asset
revaluations and professional fees towards IFRS compliance and strategic business
interventions. This resulted in a loss of P13m.
Bottom line performance also dropped because the subsidiary, Botswana Couriers,
was not able to meet its own profit targets, owing to myriad reasons, including below
target revenues by 30% and above target costs at 17%. During the year, the subsidiary
experienced many challenges including the high turnover of sales personnel which
impacted negatively on revenues and unexpected legacy tax issues arose, which
resulted in large cash outflows. The outlook for the subsidiary however is very positive
as the improvements introduced in the ensuing year are expected to generate far
better results.
For the second year running, we have a clean audit report and we are confident that
with the IFRS compliance interventions that have been put in place and the continued
improvements in the internal control environment, we shall be able to sustain this trend.
ProjectsWhile our profit performance is wanting, we are gratified by the fact that we were
able to mobilize two of our flagship projects for this year which were part of our
deliberate effort towards hinging levers for growth. As at the close of the year,
construction works on the Gaborone Mail Processing Development was delayed but it
was expected that project completion and fitting of the equipment would be realized
within the first half of the 2010/11 financial year.
interventions aimed at preparing ground for faster growth in the ensuing years.
Due to a very challenging market environment, inadequate sales resources and
suboptimal tariffs, we were not able to reach our target of a breaking even position.
Revenues across the Group were flat compared to last year and costs grew by 20%,
Due to a very challenging market environment, inadequate sales resources and
suboptimal tariffs, we were not able to reach our target of a breaking even position.
Revenues across the Group were flat compared to last year and costs grew by 20%,
suffice to say that the cost of sales was contained at similar levels as the previous
year. The growth of administrative costs was driven by salaries where an increase
suboptimal tariffs, we were not able to reach our target of a breaking even position.
Revenues across the Group were flat compared to last year and costs grew by 20%,
suffice to say that the cost of sales was contained at similar levels as the previous
year. The growth of administrative costs was driven by salaries where an increase
of 3% was made to the pension contribution to 11% and gratuity payments had to
19
The Poso House Refurbishment Project had been awarded to Project Managers by the
end of the year for them to work on the designs, culminating in the identification
of contractors and construction project supervision. This project will result in a
converted Poso House, our head office, to a modern building with a three level
parkade. Close to 50% of the space available will be leased as another source of
revenue. Envisaged completion of this project is December 2011. A related project,
the Gaborone Central Post office building development was put in abeyance until the
following year.
As part of our ambitious drive to provide the organisation with much needed
Information, Communication and Technology (ICT) infrastructure which will allow
the business to better serve its customers and manage business information, we
improved our communications network by connecting eighty-three (83) sites to a
real-time Wide Area Network (WAN), with plans for the remaining forty (40) sites
to be completed by December 2010. A high capacity Internet Bandwidth link is
incorporated in the design.
To enhance service delivery across the postal network, another of the flagship
The Poso House Refurbishment Project had been awarded to Project Managers by the The Poso House Refurbishment Project had been awarded to Project Managers by the
2020
21
projects, development of IT systems, took shape at the tail end of the year with
two layers. The first layer will involve optimization of the corporation wide IT
infrastructure which will provide a robust platform for any business system that will
be required henceforth and the second layer will be the automation of post offices
counters to provide all postal sales transactions from one-point of sale. The projects
are expected to be complete by July 2011.
Mail Operations
We have been a key player in the improvement of mail delivery service quality standards
across the region. To that end, we signed a Memorandum of Understanding with Namibia
Post during the year and have since opened a new mail network link between Gantsi and
Gobabis, the result of which will be much improved delivery standards between the two
countries which hitherto were grossly wanting at far below the “5 days after posting”
standard. This follows on another link with Zambia, which was opened last year, both of
which are under the auspices of the SAPOA mail road network links. These improvements
are over and above those on the local delivery network.
Our major concern last year was on the suboptimal tariffs which if not changed were
threatening the very foundations of our business. In the international mail exchange
arena, there have been rapid changes that will serve to erode our revenues unless
adjustments are made to the tariff structure. Fortunately, tariff increases were
approved shortly after the year end, allowing us to confidently sign up for the
Global Monitoring System, under which remuneration to us for handling mail on
behalf of global partners will both be performance based and determined in
relation to our costs of handling mail, compared to the current system where
standard rates are applied per kilogram of mail handled, irrespective of the
delivery standards achieved.
During the year we waited expectantly for the Government to sign the
International Payment Services Agreement which would allow us as
the designated postal operator to participate in the international
electronic postal money transfer network and position us to compete
for international remittances and also boost our revenues. As the Post
Office, we rely heavily on Government participation at the Universal Postal
22
Artistic impression of the refurbished Poso House
Union and national compliance to several of the agreed conventions. Going forward,
more than ever before, our close collaboration with Government shall be among the
key success factors for our business.
In the international mail network, a key success factor is the ability to interact
electronically on mail transactions with various partners. During the year, our
National Operations Control Centre
became fully operational. Through
the centre operations, we are able to
enhance corporate accountability for
traceable mail products and improve our
ability to respond to national and global
inquiries through internet based inquiry
systems. The centre has also enabled us
to interact with customers through short
message service (sms) notifications on
their mobile phones. These processes
feed into UPU “pay for performance”
systems. To date we have entered into
a Pay-for-Performance agreement with
one of our Universal Postal Union (UPS)
partners for the Express Mail Service
(EMS) products for targeted performance
measures. Under the Global Monitoring System, pay for performance will not be an
option and BotswanaPost is due for mandatory enrolment in 2012.
In a bid to close a gap that was threatening our performance ratings at global level,
we had to regularize the position of what were illegal operators in postal services in
the local market. As at year end, four of these participants had been given permission
to operate as agents of the Post Office. This model is expected among others to
extend access to basic postal services without major investment in infrastructure
and it is expected to grow with enrolment of new agents.
While the Post Code and addressing project was launched in September 2009, and was
to be driven by the Ministry of Transport and Communications, some consideration
23
Three level parking as part of the Poso House refurbishment
had to be made to merge this project with the LAPCAS project at the Ministry of
Lands and Housing. This merger was informed by the need to coordinate effort and
avoid cost duplication by the same entity i.e. the Government. It is expected that
the project will gain momentum in 2010/11.
BotswanaPost - Botswana Savings Bank MergerOne of the highlights of this financial year was the resolve by the Government
to merge BotswanaPost and Botswana Savings Bank. This followed the erstwhile
intentions by BotswanaPost to set up a PostBank. As already alluded to by the
Chairman, this development, provides an opportunity for growth of the Group and
it is a source of excitement as it will put us ahead of many participants in the Postal
World, where the race towards enhancing operational performance through postal
financial services took off in earnest after the 2008 world postal congress. We are
active participants in the teams that have been created by the Government to drive
the merger and like the rest of the key stakeholders, we are optimistic that the
target of March 2011 will be reached.
Without doubt, the merger will bring on
a new organization and will potentially
change the structure and form of the
Group. However we welcome these
changes as necessary towards the
desire for transformation.
Our PeopleThe success of our journey to
excellence hinges heavily on the
participation of our people. I am
happy to report that during the year,
we were able to realise our goals of
staff development.
As articulated in our previous report,
the leadership skills development, team building and supervisory skills programs
took place during the year and we were fortunate to identify programs with non-
24
conventional approaches that focus on developing the individual first, then as a
team member and a leader.
Due to the impact of global business pressures and our envisaged nil profit
situation, our people had to go without salary increases this year. We were
however able to increase the pension contribution by 3% to 11% to enhance
the growth of a future nest egg. We were faced with the difficult decision
between retaining all of our staff resources and forgoing a salary increase, and
taking increases but off loading some of the staff resources to retain the same
financial targets. I wish to applaud the whole team for making this sacrifice,
which was informed by an ambition for better performance this year. While
the targeted performance has not been realized, the team remains optimistic
because the intended foundations have been laid and the next year offers far
better opportunities.
At close of the year, we were expecting the delivery of our staff uniform, which
forms part of our branding campaign that will involve many marketing interventions
in the new year.
Capital Resources We were fortunate this year as the local financial market responded to our needs
for borrowed funds, thus enabling us to proceed with the key projects. In the next
year we will continue to engage the lenders for long term and sustainable borrowing
arrangements to support our growth objectives.
OutlookThe foundation that has been laid this year, gives us optimism for the next year.
To that end our outlook for the future of this business is once again of exciting
times ahead. The immediate financial year will see completion of the mail
centre project and automation of the mail processes, automation of the Post
Office counter, the merger with Botswana Savings Bank, a stepped up sales drive,
which is expected largely to enroll Government as a customer and therefore assist
cost containment thereat, a continued drive towards excellence and improved
financial performance.
25
AppreciationOur key stakeholders are pillars of our success. In closing I would like to express
appreciation to them all round for their continued partnership and the commitment
to grow along with us. I would also like to thank the Board for their leadership and
guidance in transforming our business.
Having developed the strategy “The Post - An icon of Excellence” and brought all
our stakeholders aboard at every level – we need to constantly reinforce the need
and urgency for the organization to change.
• Our suppliers have committed to deliver quality improvements in both services
and products coupled with cost savings. We realise that the creativity and
innovativeness of our employees alone cannot drive the drastic changes needed
to meet our customer expectations.
• Our shareholder as well has been asked to commit to shareholder compact – which
states key deliverables to enable the Board to drive management performance
to deliver tangible, measurable and positive returns.
• Our customers reflect that they are seeing change at the Post Offices – we assure
them that the organization shall continue to provide convenience, value adding
services and at their door-steps at affordable fees. The benefits of our ongoing
automation shall be felt in the incoming year when all our offices connect to a
real – time - online system to provide superior service.
• We are pleased that a converged communications regulator will soon be in place
to regulate all service providers inclusive of BotswanaPost. Regulators provide
market certainty for both providers and consumers eliminating unregulated and
unregistered operators
• Our employees shall be guided through clearly set performance targets and
deliverables enabling them to drive shareholder value whilst focused on
organizational performance for both short and long term.
With the generous support of all our stakeholders, we see the ‘Icon of Excellence’
within reach.
Re a leboga!
Pele
26
27
Annual Financial StatementsFor the year ended 31 March 2010
ContentsResponsibility for and Approval of the Financial Statements 28
Report of the Auditor General 29
Statement of Comprehensive Income – Year ended 31 March 2010 31
Statement of Financial Position as at 31 March 2010 32
Statement of Cash Flows – Year ended 31 March 2010 33
Statement of Changes in Equity – Year ended 31 March 2010 34
Summary of Significant Accounting Policies 35
Notes to the Annual Financial Statements 48
27
28
Responsibility for and approval of the annual financial statements
The Board of Management is responsible for the annual financial statements and all
other information presented therewith. Its responsibility includes the maintenance
of true and fair financial records and the preparation of annual financial statements
in accordance with International Financial Reporting Standards and provisions of the
Botswana Postal Services Act.
The Auditor General has the responsibility to give an independent opinion on the
reasonableness of the annual financial statements based on the audit of the affairs of
the organization. The Board Finance and Audit Committee which consist of four non-
executive members of the Board, meets with the members of senior management
as well as the external auditors as and when it deems necessary to evaluate matters
concerning accounting, internal control, auditing and financial reporting.
At its meeting held on the 1st September 2010, Members of the Board, supported
by the Board Finance and Audit Committee, satisfied themselves that Management
introduced and maintained adequate internal controls to ensure that dependable
records exist for the preparation of the financial statements to safeguard assets
of the organization and to ensure all transactions are duly authorised. Against
this background, the members of the Board accept responsibility for the financial
statements on pages 31 to 60 for the year ended 31 March 2010.
Mr. M. Makgatlhe Mr. P. Moleta Chairman Chief Executive
Date: 01/09/2010 Date: 01/09/2010
29
TELEPHONE: (+267) 3617100/3951050 OFFICE OF THE AUDITOR GENERALFAX: (+267) 3908582/3188145 PRIVATE BAG 0010FARM FORST HILL, NO.9 GABORONELOT 134, MILLENIUM PARK BOTSWANAKGALE HILLGABORONEBOTSWANA
AUDIT REPORT OF THE AUDITOR GENERALTO THE BOARD OF MANAGEMENTOF BOTSWANA POSTAL SERVICES:
I have completed the audit of the financial statements of the Botswana Postal Services,
set out on pages 4 to 28 for the year ended 31 March 2010, which comprises the
statement of financial position as at 31 March 2010, the statement of comprehensive
income, statement of changes in equity and the statement of cash flows for the year
then ended, in terms of Section 21 (2) and (3), of the Botswana Postal Services ACT
(No 22 of 1989).
Management’s Responsibility for the Financial Statements:
The Members of the Botswana Postal Services Board of Management are responsible
for the preparation and fair presentation of these financial statements in accordance
with International Financial Reporting Standards; and in compliance with the
Botswana Postal Services ACT (No 22 of 1989). The responsibility includes:
• designing, implementing and maintaining internal control relevant to the
preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error;
• selecting and applying appropriate accounting policies; and
• making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on these financial statements based on the
audit conducted. I conducted the audit in accordance with the International Standards
on Auditing. Those standards require that I comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement; and whether they were prepared in
all material respects, in accordance with an applicable reporting frame work.
29
TELEPHONE: (+267) 3617100/3951050
30
An audit includes an examination, on a test basis, of evidence supporting amounts
and disclosures in the financial statements. An audit also includes an evaluation of the
appropriateness of the accounting principles, assessment of the reasonableness of
the accounting estimates made by management, as well as the overall presentation
of the financial statements.
I have examined the books, accounts and vouchers of Botswana Postal Services to
the extent I considered necessary. I believe that the audit procedures used and the
evidence obtained are sufficient and appropriate basis for the opinion given below.
In my opinion:
• The financial Statements of Botswana Postal Services for the year ended on 31
March 2010, present fairly in all material respects, the statement of financial
position of the organization as at 31 March 2010, its statement of comprehensive
income, its changes in equity and its statement of cash flows for the year then
ended in accordance with International Financial Reporting Standards.
Report on other Legal and Regulatory Requirements:
• Botswana Postal Services has kept proper books of account, with which the
financial statements are in agreement;
• I received all the information and explanations which to the best of my knowledge
and belief, were necessary for the performance of my audit duties;
• The financial statements were prepared on a basis consistent with that used
in the previous financial year and therefore represent a fair view of the Postal
Services’ transactions and its financial affairs as at 31 March 2010;
• Botswana Postal Services has complied with the financial provisions of the
Botswana Postal Services ACT, (No. 22 of 1989).
R. B. SEBOPENG
AUDITOR GENERAL
Dated: 3 September 2010
31
Statement of Comprehensive Income
For the year ended 31 March 2010
GROUP CORPORATION
2010 2009 2010 2009
Notes P P P P
Revenue 1 127,018,557 127,696,392 114,966,727 115,354,521
Cost of Sales 2 (64,296,752) (62,883,239) (60,174,762) (60,545,223)
Gross profit 62,721,805 64,813,153 54,791,965 54,809,298
Other income 3 7,628,368 1,780,360 6,833,591 1,725,951
Administrative expenses 4 (83,718,472) (70,604,283) (75,355,270) (60,958,876)
Other operating expenses 5 (32,090) (2,716,546) (32,090) (2,716,546)
Operating loss (13,400,389) (6,727,316) (13,761,804) (7,140,173)
Finance cost 6 (3,624,652) (783,842) (3,519,527) (629,632)
Finance income 7 4,181,082 5,848,489 4,112,274 5,801,510
Loss before taxation (12,843,959) (1,662,669) (13,169,056) (1,968,295)
Taxation 8 35,057 (137,722) - -
Loss for the year (12,808,902) (1,800,391) (13,169,056) (1,968,295)
Other comprehensive income:
Gains and losses on property, plant and equipment revaluations 885,940 12,413,264 - 12,413,264
Taxation related to components of other comprehensive income (221,485) - - -
Other comprehensive income for the year net of taxation
664,455 12,413,264 - 12,413,264
Total Comprehensive income (12,144,447) 10,612,874 (13,169,056) 10,444,969
31
32
Statement of Financial Position As at 31 March 2010
GROUP CORPORATION 2010 2009 2010 2009
Notes P P P P
ASSETS Non current assets Property, Plant and Equipment 9 193,205,539 172,880,091 191,466,736 171,834,841 Intangible assets 10 8,893 314,554 8,893 307,629 Investment in subsidiary - - 2,558,280 2,558,280
193,214,431 173,194,645 194,033,908 174,700,750
Current Assets Inventories 11 3,211,017 1,795,168 3,211,017 1,795,168 Trade and other receivables 12 38,704,964 25,469,294 37,156,785 22,463,827 Cash and short term deposits 13 48,406,284 62,258,014 46,965,132 61,252,648
90,322,265 89,522,476 87,332,935 85,511,643
TOTAL ASSETS 283,536,698 262,717,121 281,366,841 260,212,393
EQUITY AND LIABILITIES Equity Stated capital 14 38,431,729 38,431,729 38,431,729 38,431,729 Revaluation reserve 94,883,309 95,810,401 94,218,854 95,810,401 Other capital reserves 14 199,761 199,761 199,761 199,761 Retained earnings 30,269,343 41,486,699 31,270,037 42,847,548
163,784,142 175,928,590 164,120,382 177,289,439
Non current liabilities Interest bearing loans and borrowings 15 177,825 233,277 177,825 233,277 Government grants 16 13,968,958 14,860,970 13,968,958 14,860,970 Finance lease obligation 18 8,950,516 483,068 8,601,301 - Deferred tax liability 19 252,190 65,762 - - Provisions - Severance pay 20 238,442 190,732 - -
23,587,931 15,833,809 22,748,083 15,094,247
Current liabilities Finance lease obligation 18 2,904,797 319,978 2,669,500 - Trade and other payables 17 87,484,093 69,081,180 86,110,668 66,338,849 Interest bearing loans and borrowings 15 55,452 359,818 55,452 359,818
Government grants 16 5,662,755 1,130,040 5,662,755 1,130,040
Current tax payable 57,527 63,706 - -
96,164,625 70,954,722 94,498,376 67,828,707
TOTAL EQUITY AND LIABILITIES 283,536,698 262,717,121 281,366,841 260,212,393
33
Statement Cash Flow For the year ended 31 March 2010
GROUP CORPORATION 2010 2009 2010 2009
Notes P P P P
Operating activitiesLoss before taxation (12,843,958) (1,662,669) (13,169,056) (1,968,295)Adjustment to reconcile loss before tax to net cash flowsNon- cash:
Depreciation and impairment of property and equipment 14,430,521 11,775,611 13,862,380 11,144,094
Amortisation and impairment of intangible assets 305,660 640,503 298,735 629,809
Loss on disposal of property and equipment 497,019 75,997 678,760 75,997
Finance income (4,181,082) (5,848,489) (4,112,274) (5,801,510)Finance cost 3,624,652 783,842 3,519,527 629,632 Amortisation of government grants (2,372,675) (659,190) (2,372,675) (659,190)Movements in provisions 47,710 41,246 - - Loss on foreign exchange 1,765 - - -
Working capital adjustments:(Increase) / Decrease in inventories (1,415,850) 306,430 (1,415,850) 306,430 Increase in trade and other receivables (13,576,752) (7,304,084) (14,692,958) (6,127,108)Increase in trade and other payables 18,742,232 15,697,762 19,771,820 14,069,839
Cash generated from operating activities 3,259,242 13,846,959 2,368,409 12,299,698 Tax paid (6,179) (3,917) - -
Net cash from operating activities 3,253,063 13,843,042 2,368,409 12,299,698
Investing activitiesProceeds from sale of property and equipment 3,123,247 6,898 2,824,515 6,898
Purchase of property and equipment (37,490,298) (8,210,343) (36,997,549) (8,019,306)Receipt of government grant 6,013,378 11,000,000 6,013,378 11,000,000 Finance income 4,181,082 5,848,489 4,112,274 5,801,510 Net cash flows from investing activities (24,172,591) 8,645,044 (24,047,382) 8,789,102
Financing activitiesRepayment of borrowings (359,818) (657,433) (359,818) (657,433)Finance lease payments (1,473,737) (418,341) (1,167,575) - Finance lease obligation 12,438,376 - 12,438,376 Finance cost (3,537,024) (783,842) (3,519,527) (629,632)Net cash flows from financing activities 7,067,798 (1,859,616) 7,391,457 (1,287,065)
Net increase in cash and cash equivalents (13,851,730) 20,628,470 (14,287,516) 19,801,734 Cash and cash equivalents at beginning of the year 62,258,014 41,629,544 61,252,648 41,450,914
Cash and cash equivalents end of year 48,406,284 62,258,014 46,965,132 61,252,648
34
Statement of Changes in Equity
For the year ended 31 March 2010
GROUPStated Other capital Revaluation Retainedcapital reserves reserve earnings Total
P P P P P
At 1 April 2008 38,431,729 199,761 83,397,135 43,287,088 165,315,713Revaluation adjustments - - (742,405) - (742,405)Revaluation of equipment - - 13,155,669 - 13,155,669Loss for the year - - - (1,800,391) (1,800,391)At 31 March 2009 38,431,729 199,761 95,810,401 41,486,699 175,928,590Revaluation surplus on motor vehicles disposed - - (1,591,546) 1,591,546 -
Loss for the year - - - (12,808,902) (12,808,902)Revaluation gain of property - - 664,455 - 664,455At 31 March 2010 38,431,729 199,761 94,883,309 30,269,343 163,784,143
CORPORATIONStated share Other capital Revaluation Retained
capital reserves reserve earnings TotalP P P P P
At 1 April 2008 38,431,729 199,761 83,397,137 44,815,842 166,844,469Revaluation adjustments - - (742,405) - (742,405)Revaluation of equipment & Motor Vehicles - - 13,155,669 - 13,155,669
Loss for the year - - - (1,968,295) (1,968,295)At 31 March 2009 38,431,729 199,761 95,810,401 42,847,548 177,289,439Revaluation surplus on motor vehicles disposed - - (1,591,546) 1,591,546 -
Loss for the year - - - (13,169,056) (13,169,056)At 31 March 2010 38,431,729 199,761 94,218,854 31,270,037 164,120,382
35
Summary of Significant Accounting Policies
Year ended 31 March 2010
Basis of PreparationThe consolidated financial statements have been prepared on a historical cost basis,
except for property and equipment that have been measured at revalued amounts.
The financial statements are presented in Botswana Pula (P).
Basis of ConsolidationThe consolidated financial statements comprise the financial statements of Botswana
Postal Services and its subsidiary Botswana Couriers (Pty) Ltd.
The accounting policies of the subsidiary are in line with those of Botswana
Postal Services.
All intra-group balances, income and expenses and profits and losses arising out of
intra-group transactions are eliminated in full upon consolidation.
Subsidiaries are consolidated from the date of acquisition, being the date on which the
corporation obtains control, and continues to be consolidated until such control ceases.
Foreign Currency TranslationThe corporation’s consolidated financial statements are presented in Botswana
Pula (P), which is the corporation’s functional currency. That is the currency of the
primary economic environment in which Botswana Postal Services operates.
Transactions in currencies other than the Botswana Pula are initially recorded at the
rate of exchange prevailing on the date of transaction. Foreign denominated monetary
assets and liabilities are retranslated at the Botswana Pula spot rate of exchange at the
balance sheet date. Foreign exchange gains and losses arising on translation of foreign
currencies are dealt with in the income statement in the year in which they arise.
Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates as at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value is determined.
36
Transactions with other postal administrators are governed by the Universal Postal
Union (UPU) which uses Special Drawing Rights (SDR) as the currency to settle
international balances.
Property & EquipmentLand and buildings, motor vehicles and furniture and equipment are measured at
revaluation less accumulated depreciation and impairment losses recognised after the
date of revaluation. Revaluations are performed in a staggered manner as the operations
of the corporation are dispersed all over the country. Work in progress is stated at cost.
Any revaluation surplus is credited to the revaluation reserve included in equity in
the balance sheet, except to the extent that it reverses a revaluation decrease of the
same asset previously recognised in the income statement. A revaluation deficit is
recognised in the income statement, except to the extent that it offsets an existing
surplus on the same asset recognised in the revaluation reserve.
Accumulated depreciation as at the date of revaluation is eliminated against the
gross carrying amount of the asset and the net amount is restated to the revalued
amount of the asset. Upon disposal, any revaluation reserve relating to the particular
asset being sold is transferred to retained earnings.
Depreciation is calculated on the depreciable amount on a straight line basis over
the useful life of the asset as follows:
Buildings 50 years
Motor vehicles 5 years
Furniture and equipment 3 to 7 years
Depreciable amount is the cost or revaluation amount of the asset, less its residual value.
An item of property and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement
in the year in which the asset is derecognised.
Summary of Significant Accounting Policies continued...
37
The assets residual values, useful lives and methods of depreciation are reviewed at
each financial year end, and adjusted prospectively if appropriate.
Intangible AssetsIntangible assets consist of purchased software and are measured on initial recognition
at cost. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation and any accumulated impairment losses.
Intangible assets are amortised over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be
impaired. The amortisation expense on intangible assets is recognised in the
income statement in the expense category consistent with the function of the
intangible asset.
The estimated useful lives and residual values are reviewed at each year end, with
the effect of any changes in estimate accounted for on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset,
and are recognised in the income statement when the asset is derecognised.
Operating LeasesLeases where the organisation does not transfer substantially all the risks and
benefits of ownership are classified as operating leases.
BotswanaPost as Lessee
Operating lease payments are recognised as an expense in the income statement
on a straight line basis over the lease term. The difference between the expense
determined on a straight line basis and the actual lease payments is recognised as a
deferred lease asset or liability in the balance sheet.
BotswanaPost as Lessor
Operating lease payments received are recognised as rental income in the income
statement on a straight line basis over the lease term. The difference between the
income determined on a straight line basis and the actual lease payments received is
recognised as a deferred lease asset or liability in the balance sheet.
38
Finance LeasesFinance leases,which transfer to the Group substantially all the risks and benefits
incidental to ownership of the leased item, are capitalised at the commencement of
the lease at the fair value of the leased property or, if lower at the present value of
the minimum lease payments.
Lease payments are apportioned between finance charges and reduction of the lease
liability so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are recognised in the income statement.
Leased assets are depreciated over the useful life of the asset. However, if there is
no reasonable certainty that the Group will obtain ownership by the end of the lease
term, the asset is depreciated over the shorter of the estimated useful life of the
asset and the lease term.
Borrowing CostsBorrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost of the respective assets.
All other borrowing costs are expensed in the period they occur. Borrowing costs
consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.
InventoriesInventories are valued at the lower of cost and net realisable value. Cost is purchase
cost, determined on a first in first out basis, including transport and handling costs.
Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale.
Government GrantsGovernment grants are recognised when there is reasonable assurance that the grant
will be received and all attached conditions will be complied with. When the grant
relates to an expense item, it is recognised as income over the period necessary to
Summary of Significant Accounting Policies continued...
39
match the grant on a systematic basis to the costs that it is intended to compensate.
When the grant relates to an asset, it is recognised as deferred income and released
to income in equal amounts over the useful life of the asset.
Where non-monetary grants are received, the asset and the grant are recorded at
nominal amounts and released to the income statement over the expected useful life
of the asset by equal annual installments.
Impairment of Non-Financial AssetsBotswana Post assesses at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, an estimate of the recoverable amount
is made. An asset’s recoverable amount is the higher of the asset’s fair value less
costs to sell, and its value in use and is determined for an individual asset unless the
asset does not generate cash flows that are largely independent of those from other
assets or groups of assets. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, an appropriate valuation model is used.
Impairment losses are recognised in the income statement in those expense
categories consistent with the function of the impaired asset, except for property
previously revalued where the revaluation surplus was taken to equity. In respect
of that asset, the impairment is also recognised in equity up to the amount of any
previous revaluation surplus.
An assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased.
If such indication exists, the organisation estimates the asset’s recoverable amount.
A previously recognised impairment loss is reversed only if there has been a change
in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognised. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in the income
statement unless the asset is carried at revalued amount, in which case the reversal
is treated as a revaluation increase.
40
Revenue RecognitionRevenue is recognised only when it is probable that the economic benefits associated
with the transaction will flow to the organisation and the revenue can be measured
reliably. Revenue is measured at the fair value of the consideration received,
excluding discounts, rebates, value added tax or duty. The following specific
recognition criteria should also be met before revenue is recognised:
Box and Bag Rentals
These are amounts paid by customers for the rental of private post boxes and bags.
Revenue is recognised upon receipt of the rent payment.
Mail Revenue and Bulk Mail Revenue
Mail services include both letter and parcel delivery and revenue from these services
is recognised upon delivery of the mail or parcel to its destination. Bulk mail is a
mail sorting and delivery service offered to customers with large mailing lists such
as banks. Revenue from bulk mail services is recognised upon delivery of the mail to
its destination.
Expedited Mail Service (EMS) Revenue
This is an express courier service and revenue is recognised upon delivery of the
parcel to its intended destination.
Terminal and Transit Dues
Terminal dues are amounts due to Botswana Post for mail received from foreign
postal administrators whose destination is Botswana. Transit dues are amounts due
from international postal administrators for international mail which passes through
Botswana Post in transit to its destination out of Botswana. Revenue from terminal
and transit dues is recognised once the mail has been delivered to its destination in
the case of terminal dues, and once it has been sent off to its next stop with regard
to the latter.
Summary of Significant Accounting Policies continued...
41
Sale of Philatelic Products
Revenue is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer.
Agency Fees and Commissions
Revenue from rendering of agency services is recognised as the services are provided
in accordance with the terms of the agency agreement.
Interest Income
Revenue is recognised as interest accrues (using the effective interest method).
Interest income is included in finance revenue in the income statement.
Rental Income
Rental income arising from operating leases is accounted for on a straight line basis
over the lease terms.
Cash and Short Term DepositsCash and short term deposits in the statement of financial position comprise cash at banks
and on hand and short term deposits with an original maturity of three months or less.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents
consist of short term deposits, as defined above, net of outstanding bank overdrafts.
Financial AssetsInitial recognition
Financial assets within the definition of IAS39 are classified as financial assets at
fair value through profit or loss, loans and receivables, held-to-maturity investments
available-for-sale financial assets or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. The corporation determines the classification
of its financial assets at initial recognition.
Financial assets are recognised initially at fair value plus, in the case of investments
not at fair value through profit or loss, directly attributable transaction costs.
Purchases or sales of financial assets that require delivery of assets within a time
42
frame established by regulation or convention in the marketplace (regular way
purchases) are recognised on the trade date, I.e. the date that the corporation
commits to purchase or sell the asset.
The corporations financial assets include cash and short term deposits and trade and
other receivables.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as
follows:
Cash and short term deposits
Cash on hand and cash equivalents are carried at amortised cost. Deposits held on call
are classified as loans originated by the corporation and carried at amortised cost.
Trade and other receivables
These are classified as loans and receivables. Subsequent to initial recognition,
trade and other receivables are measured at amortised cost, which approximates
the original invoice amount less an allowance for any uncollectable amounts.
Financial LiabilitiesInitial recognition
Financial liabilities within the scope of IAS39 are classified as financial liabilities at
fair value through profit or loss, loans and borrowings or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. The corporation
determines the classification of its financial liabilities at initial recognition.
Financial liabilities are recognised initially at fair value and in the case of loans and
borrowings, directly attributable transaction costs.
The corporations financial liabilities include trade and other payables, bank overdraft
and loans and borrowings.
Summary of Significant Accounting Policies continued...
43
Subsequent measurement
The subsequent measurement of financial liabilities depends on their classification
as follows:
Interest bearing loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are
derecognised as well as through the amortisation process.
Trade and other payables
Liabilities for trade and other payables are subsequently measured at amortised cost
which is the present value of the consideration to be paid in the future for goods and
services received, whether or not billed to the corporation.
Offsetting of Financial InstrumentsFinancial assets and financial liabilities are offset and the net amount reported in the
consolidated balance sheet if, and only if, there is a currently enforceable legal right
to offset the recognised amounts and there is an intention to settle on a net basis,
or to realise the assets and settle the liabilities simultaneously.
Impairment of Financial InstrumentsThe Corporation assesses at each balance sheet date whether there is any objective
evidence that a financial asset or a group of financial assets is impaired. A financial
asset or a group of financial assets is deemed to be impaired if, and only if, there is
objective evidence of impairment as a result of one or more events that has occurred
after the initial recognition of the asset (an incurred “loss event”) and that loss
event has an impact on the estimated future cash flows of the financial asset or the
group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors
is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial
44
reorganisation and where observable data indicate that there is measurable decrease
in the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults.
Trade and other receivables
For amounts due from trade and other receivables carried at amortised cost, the
corporation first assesses individually whether objective evidence of impairment
exists individually for financial assets that are individually significant, or collectively
for financial assets that are not individually significant. If the corporation determines
that no objective evidence of impairment of assets exists for an individually assessed
financial asset, whether significant or not, it includes the asset in a group of financial
assets with similar credit risk characteristics and collectively assesses them for
impairment. Assets that are individually assessed for impairment and for which
an impairment loss or continues to be recognised, are not included in a collective
assessment of impairment.
If there is objective evidence that an impairment loss has been incurred, the amount
of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that
have not been incurred) discounted at the financial asset’s original effective interest
rate. The carrying amount of the asset shall be reduced either directly or through use
of an allowance account. The amount of the loss shall be recognised in profit or loss.
If, in a subsequent year, the amount of the estimated impairment loss increases or
decreases because of an event occurring after the impairment was recognised, the
previously recognised impairment loss is increased or reduced accordingly. If a future
write-off is later recovered, the recovery is recognised in the income statement.
Derecognition of Financial InstrumentsThe corporation derecognises a financial asset when it loses control over the
contractual rights that comprise the asset and consequently transfers the substantive
risks and benefits associated with the asset.
Summary of Significant Accounting Policies continued...
45
A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires.
ProvisionsProvisions are recognised when the organisation has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to any
provision is presented in the income statement.
TaxationBotswana Postal Services is exempt from income tax in terms of the income Tax Act.
However, Botswana Couriers (Pty) Ltd is taxable.
Current Income TaxCurrent income tax assets and liabilities for the current and prior periods are
measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and laws used to compute the amount are those enacted
or substantively enacted by the balance sheet date.
Current income tax relating to items recognised directly in equity is recognised in
equity and not in the income statement.
Deferred Income TaxDeferred income tax is provided using the liability method on temporary differences
at the balance sheet date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes. Deferred tax liabilities
are generally recognised for all taxable temporary differences, and deferred tax
assets are recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such assets and liabilities are not recognised
if the temporary difference arises from goodwill or from the initial recognition (other
than in a business combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
46
Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply to the period when the asset is realised or the liability is settled, based on tax rates
and laws that have been enacted or substantively enacted by the balance sheet date.
Significant Accounting Judgements & EstimatesThe preparation of the corporation’s financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities,
at the reporting date. However, uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount
of the asset or liability affected in future periods.
The following are critical judgements and estimates that management has made in
the process of applying the entities’ accounting policies and have the most significant
effect on the amounts recognised in the financial statements:
Revaluation, Useful Lives and Residual Values of Property and EquipmentThe corporation engaged independent valuation experts to determine the market
values of the revalued assets at 31 March 2009. The results of this valuation exercise
were used as the basis for revaluation of the assets. The estimation of the useful life
and residual value of an asset is a matter of judgement based on past experience of
the corporation with similar assets and the intention of management.
Useful Lives of Intangible AssetsThe estimation of the useful life of an intangible asset is a matter of judgement
based on past experience of the corporation with similar assets and the intention
of management.
ProvisionsManagement estimated for provisions raised, based on information available.
Summary of Significant Accounting Policies continued...
47
Contingent LiabilitiesManagement applies its judgement to information received from its attorneys
and other advisors in assessing if an obligation is probable, more likely than not,
or remote. This judgement application is used to determine if the obligation is
recognised as a liability or disclosed as a contingent liability.
Impairment of Trade and Other ReceivablesThe impairment of trade and other receivables was based on a combination of
specifically identified doubtful debtors and providing for older debtors.
Impairment of Slow Moving InventoryManagement assumed inventory that has not moved for a 12 month period to be
obsolete and have no value. The basis for the provision raised is the full cost or net
realisable value of the product.
Deferred Tax AssetsJudgement is required in determining the provision for income taxes due to the
complexity of legislation. There are many transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary course of business. The
company recognises liabilities for anticipated tax audit issues based on estimates of
whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact
the income tax and deferred tax provisions in the period in which such determination
is made.
The company recognises the net future tax benefit related to deferred income tax
assets to the extent that it is probable that the deductible temporary differences
will reverse in the foreseeable future. Assessing the recoverability of deferred
income tax assets requires the company to make significant estimates related to
expectations of future taxable income. Estimates of future taxable income are based
on forecast cash flows from operations and the application of existing tax laws in
each jurisdiction. To the extent that future cash flows and taxable income differ
significantly from estimates, the ability of the company to realise the net deferred
tax assets recorded at the balance sheet date could be impacted.
47
48
Notes to the Financial Statements
As at 31 March 2010
GROUP CORPORATION 2010 2009 2010 2009
P P P P
1. REVENUE Courier Income 12,051,830 12,341,872 - - Box and bag rentals 18,535,525 19,661,363 18,535,525 19,661,363 Bulk mail 18,370,928 18,558,830 18,370,928 18,558,830 EMS revenue 3,888,561 4,018,241 3,888,561 4,018,241 Mail revenue 26,972,010 27,514,924 26,972,010 27,514,924 Terminal dues 5,344,511 6,430,112 5,344,511 6,430,112 Transit dues 38,535 37,049 38,535 37,049 Money order commission 13,943,598 13,075,964 13,943,598 13,075,964 Postal order commission 281,231 239,730 281,231 239,730 Western Union agency commission 3,143,555 4,070,522 3,143,555 4,070,522 Philatelic products 1,459,494 1,236,846 1,459,494 1,236,846 Agency services 22,988,779 20,510,941 22,988,779 20,510,941
127,018,557 127,696,392 114,966,727 115,354,521
2. COST OF SALES Salaries 44,879,430 41,661,347 43,311,209 39,323,331 Compensation to customers 32,766 5,198 32,766 5,198 Fees paid postal agencies 112,085 80,652 112,085 80,652 Printing of stamps 575,461 677,906 575,461 677,906 Stock adjustment 165,929 (221,606) 165,929 (221,606)Staff transport 432,414 417,498 432,414 417,498 Mail bags and other consumables 1,781,542 332,055 1,781,542 332,055 Discount allowed 795,483 521,425 795,483 521,425 Maintenance post boxes 351,256 8,619 351,256 8,619 Depreciation 3,928,342 3,305,209 3,491,243 3,305,209 Advertisement and promotion 2,093,301 2,368,633 2,093,301 2,368,633 Mail conveyance 9,148,743 13,726,304 7,032,073 13,726,304
64,296,752 62,883,239 60,174,762 60,545,223
49
GROUP CORPORATION 2010 2009 2010 2009
P P P P 3. OTHER INCOME
Directors’ fees received 17,304 17,984 17,304 17,984 Sale of merchandise 398,456 230,191 398,456 230,191 Minimum rental payments recognised as operating lease income 1,519,788 394,059 1,519,788 394,059
Sundry income 3,457,675 54,409 2,662,898 - Profit / (Loss) on disposal on property and equipment (678,760) (75,997) (678,760) (75,997)
Newspaper and periodicals registration fees 50,099 64,245 50,099 64,245
Staff housing rental recoveries 300,888 245,913 300,888 245,913 Business services 190,243 190,366 190,243 190,366 Government grant 2,372,675 659,190 2,372,675 659,190
7,628,368 1,780,360 6,833,591 1,725,951
4. ADMINISTRATIVE EXPENSES Salaries 35,620,884 33,497,170 30,305,784 29,099,474 Training 3,187,607 736,910 3,134,731 696,420 Travelling 3,475,783 3,438,961 3,335,459 3,247,252 Sales promotion and advertising 319,064 624,788 59,239 96,331 Cleaning 1,000,389 913,364 942,982 883,807 Subscriptions 681,439 307,988 637,359 278,749 Telephone 6,510,048 4,345,452 6,130,053 3,978,285 Audit fees 443,293 95,500 350,243 - Professional fees 3,276,820 925,257 3,121,233 884,008 Rent and rates 3,147,130 2,571,501 2,633,162 2,218,154 Directors fees and board expenses 338,170 169,105 338,170 169,105 Electricity 1,035,256 1,063,072 1,009,050 1,038,372 Insurance 1,034,261 945,873 650,175 784,656 Security and alarm 1,479,135 1,034,963 1,438,952 999,125 Water 259,544 200,806 250,809 192,572 Pinagare Strategic plan - 8,455 - 8,455 Doubtful debts - 1,533,484 - 633,962 Printing and stationery 3,774,936 2,949,848 3,676,409 2,849,064 Repairs and maintenance 6,618,735 6,849,563 6,067,661 5,355,223 Depreciation 10,807,840 7,621,075 10,669,873 6,978,864 Office expenses 708,138 771,149 603,926 566,998
83,718,472 70,604,283 75,355,270 60,958,876
49
50
GROUP CORPORATION 2010 2009 2010 2009
P P P P 5. OTHER OPERATING EXPENSES
Donations 80,181 87,103 80,181 87,103 Other expenses (48,091) 5,180 (48,091) 5,180 Defalcations - 161,983 - 161,983 Other income sundry - 2,462,280 - 2,462,280
32,090 2,716,546 32,090 2,716,546
6. FINANCE COST
Bank charges and interest 3,545,541 695,579 3,440,416 541,369 Interest on interest bearing loans and borrowings 79,111 88,263 79,111 88,263
3,624,652 783,842 3,519,527 629,632
7. FINANCE INCOME Interest income from short term deposits 3,333,026 4,706,761 3,333,026 4,706,761 Interest income on call accounts from banks 848,056 1,141,728 779,248 1,094,749
4,181,082 5,848,489 4,112,274 5,801,510
8. TAXATION
Current Local income tax - current period - 67,623 - -
Deferred Originating and reversing temporary differences 88,995 8,783 - -
Arising from prior period adjustments (124,052) 61,316 - -
(35,057) 137,722 - -
Notes to the Financial Statements Continued...
51
9.
PRO
PERT
Y A
ND
EQ
UIP
MEN
T G
ROU
P
Lan
d an
d bu
ildin
gs a
t va
luat
ion
Mot
or
vehi
cles
at
valu
atio
n
Fur
nitu
re &
eq
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ent
at
valu
atio
n P
roje
ct
asse
ts
Pos
tal
mus
eum
st
amp
colle
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n at
cos
t
Wor
k in
pr
ogre
ss a
t co
st
Tot
al
P
P
P
P
P
P
P
Cost
or
valu
atio
n:
At 1
Apr
il 20
08
151
,174
,228
1
8,86
7,20
1 2
9,56
9,10
7 -
2
06,0
05
7,0
94,5
81
206
,911
,122
Ad
diti
ons
192
,733
8
1,46
7 2
19,2
63
-
-
7,7
16,8
80
8,2
10,3
43
Tran
sfer
s -
-
1
93,7
98
3,1
27,0
72
-
-3,3
20,8
70
-
Dis
posa
ls
-
(17
5,64
9) (
245,
681)
-
-
-
(42
1,33
0)Im
pair
men
t -
(
4,76
8) -
-
(
206,
005)
-
(21
0,77
3)Re
valu
atio
ns
-
2,6
49,6
18
10,
506,
051
-
-
-
13,
155,
669
Prio
r ye
ar a
djus
tmen
t -
-
-
-
-
(
2,17
3,25
2) (
2,17
3,25
2)El
imin
atio
n*
-
(11
,383
,905
) (
22,4
95,6
48)
-
-
-
(33
,879
,553
)A
t 31
Mar
ch 2
009
151
,366
,961
1
0,03
3,96
4 1
7,74
6,89
0 3
,127
,072
-
9
,317
,339
1
91,5
92,2
26
Addi
tion
s 1
,071
,313
1
2,77
0,87
1 2
,449
,293
1
4,91
1,62
3 -
2
1,19
8,82
1 5
2,40
1,92
1 Tr
ansf
ers
-
-
-
-
-
(14
,911
,623
) (
14,9
11,6
23)
Dis
posa
ls
-
(4,
356,
491)
-
-
-
-
(4,
356,
491)
Reva
luat
ions
-
8
85,9
40
-
-
-
-
885
,940
A
t 31
Mar
ch 2
010
152
,438
,274
1
9,33
4,28
4 2
0,19
6,18
3 1
8,03
8,69
5 -
1
5,60
4,53
7 2
25,6
11,9
74
Acc
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ated
dep
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atio
n :
At 1
Apr
il 20
08
13,
549,
866
9,0
94,1
76
20,
152,
095
-
-
-
42,
796,
137
Dep
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n ch
arge
for
the
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r 2
,995
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3
,806
,445
3
,114
,692
3
64,8
25
-
-
10,
281,
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Prio
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djus
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dep
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211,
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22,
385
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-
-
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(
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-
-
(
338,
436)
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(
11,3
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(22
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-
-
(
33,8
79,5
53)
At
31 M
arch
200
9 1
6,33
3,02
9 1
,445
,951
5
68,3
34
364
,825
-
-
1
8,71
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9 D
epre
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3,0
21,7
67
3,9
06,5
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4,9
23,3
67
2,5
78,8
12
-
-
14,
430,
521
Dis
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-
(73
6,22
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-
-
-
(
736,
225)
At
31 M
arch
201
0 1
9,35
4,79
6 4
,616
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5
,491
,701
2
,943
,637
-
-
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1 M
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0 1
33,0
83,4
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14,
717,
983
14,
704,
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15,
095,
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-
15,
604,
537
193
,205
,539
At 3
1 M
arch
200
9 1
35,0
33,9
32
8,5
88,0
13
17,
178,
556
2,7
62,2
47
-
9,3
17,3
39
172
,880
,091
At 1
Apr
il 20
08
137
,624
,362
9
,773
,025
9
,417
,012
-
2
06,0
05
7,0
94,5
81
164
,114
,985
* Th
is e
limin
atio
n re
late
s to
the
acc
umul
ated
dep
reci
atio
n as
at
reva
luat
ion
date
tha
t w
as e
limin
ated
aga
inst
the
gro
ss c
arry
ing
amou
nt o
f th
e re
valu
ed
asse
t.
Reva
luat
ion
of p
rope
rty
and
equi
pmen
t
Mot
or v
ehic
les,
fur
nitu
re a
nd e
quip
men
t w
ere
reva
lued
at
31 M
arch
200
9 by
an
exte
rnal
inde
pend
ent
valu
er,
on a
n op
en m
arke
t ba
sis.
Fina
nce
leas
esTh
e ca
rryi
ng v
alue
of
mot
or v
ehic
les
held
und
er fi
nanc
e le
ases
at
31 M
arch
201
0 w
as P
10
460
823
(200
9: n
il ).
Add
itio
ns d
urin
g th
e ye
ar in
clud
e P
12 4
38
376
( 20
09:
nil)
of
mot
or v
ehic
les
unde
r fin
ance
leas
es.
51
52
9.
PRO
PERT
Y AN
D EQ
UIP
MEN
T co
nt..
.CO
RPO
RATI
ON
Lan
d an
d bu
ildin
gs a
t va
luat
ion
Mot
or
vehi
cles
at
valu
atio
n
Fur
nitu
re &
eq
uipm
ent
at
valu
atio
n P
roje
ct
asse
ts
Pos
tal
mus
eum
st
amp
colle
ctio
n at
cos
t
Wor
k in
pr
ogre
ss a
t co
st
Tot
al
P
P
P
P
P
P
P
Cost
or
valu
atio
n:
At 1
Apr
il 20
08
151
,006
,708
1
6,83
3,50
4 2
8,81
8,75
1 -
2
06,0
05
7,0
94,5
81
203
,959
,549
Ad
diti
ons
175
,120
9
,700
1
17,6
06
-
-
7,7
16,8
80
8,0
19,3
06
Tran
sfer
s -
-
1
93,7
98
3,1
27,0
72
(3,
320,
870)
-
Dis
posa
ls
-
(17
5,64
9) (
245,
681)
-
-
-
(42
1,33
0)Im
pair
men
t -
(
4,76
8) -
-
(
206,
005)
-
(21
0,77
3)Re
valu
atio
ns
-
2,6
49,6
18
10,
506,
051
-
-
-
13,
155,
669
Prio
r ye
ar a
djus
tmen
t -
-
-
-
-
(
2,17
3,25
2) (
2,17
3,25
2)El
imin
atio
n*
-
(11
,383
,905
) (
22,4
95,6
48)
-
-
-
(33
,879
,553
)A
t 31
Mar
ch 2
009
151
,181
,828
7
,928
,500
1
6,89
4,87
7 3
,127
,072
-
9
,317
,339
1
88,4
49,6
16
Addi
tion
s 1
,071
,313
1
2,43
8,37
6 2
,289
,039
1
4,91
1,62
3 -
2
1,19
8,82
1 5
1,90
9,17
2 Tr
ansf
ers
-
-
-
-
-
(14
,911
,623
) (
14,9
11,6
23)
Dis
posa
ls
-
(4,
239,
500)
-
-
-
-
(4,
239,
500)
At
31 M
arch
201
0 1
52,2
53,1
41
16,
127,
376
19,
183,
916
18,
038,
695
-
15,
604,
537
221
,207
,666
Dep
reci
atio
n :
At 1
Apr
il 20
08
13,
500,
291
8,1
56,5
00
19,
673,
499
-
-
-
41,
330,
290
Dep
reci
atio
n ch
arge
for
the
yea
r 2
,961
,547
3
,298
,170
3
,024
,954
3
64,8
25
-
-
9,6
49,4
95
Prio
r ye
ar a
djus
tmen
t to
dep
reci
atio
n (
211,
888)
22,
385
42,
481
-
(14
7,02
1)D
ispo
sals
-
(
93,1
50)
(24
5,28
6) -
-
-
(
338,
436)
Elim
inat
ion*
(11
,383
,905
) (
22,4
95,6
48)
-
(33
,879
,553
)A
t 31
Mar
ch 2
009
16,
249,
950
-
-
364
,825
-
-
1
6,61
4,77
5 D
epre
ciat
ion
char
ge f
or t
he y
ear
2,9
84,7
41
3,4
69,4
76
4,8
29,3
51
2,5
78,8
12
-
-
13,
862,
380
Dis
posa
ls
-
(73
6,22
5) -
-
-
-
(
736,
225)
At
31 M
arch
201
0 1
9,23
4,69
1 2
,733
,251
4
,829
,351
2
,943
,637
-
-
2
9,74
0,93
0
Net
boo
k va
lue:
At
31
Mar
ch 2
010
133
,018
,450
1
3,39
4,12
5 1
4,35
4,56
5 1
5,09
5,05
8 -
1
5,60
4,53
7 1
91,4
66,7
36
At 3
1 M
arch
200
9 1
34,9
31,8
78
7,9
28,5
00
16,
894,
877
2,7
62,2
47
-
9,3
17,3
39
171
,834
,841
At
1 A
pril
2008
1
37,5
06,4
17
8,6
77,0
04
9,1
45,2
52
-
206
,005
7
,094
,581
1
62,6
29,2
59
* Th
is e
limin
atio
n re
late
s to
the
acc
umul
ated
dep
reci
atio
n as
at
reva
luat
ion
date
tha
t w
as e
limin
ated
aga
inst
the
gro
ss c
arry
ing
amou
nt o
f th
e re
valu
ed a
sset
.
Reva
luat
ion
of p
rope
rty
and
equi
pmen
tM
otor
veh
icle
s, f
urni
ture
and
equ
ipm
ent
wer
e re
valu
ed a
t 31
Mar
ch 2
009
by a
n ex
tern
al in
depe
nden
t va
luer
, on
an
open
mar
ket
basi
s.
Fina
nce
leas
esTh
e ca
rryi
ng v
alue
of
mot
or v
ehic
les
held
und
er fi
nanc
e le
ases
at
31 M
arch
201
0 w
as P
10
460
823
(200
9: n
il ).
Add
itio
ns d
urin
g th
e ye
ar in
clud
e P
12 4
38
376
( 20
09:
nil)
of
mot
or v
ehic
les
unde
r fin
ance
leas
es.
Notes to the Financial Statements Continued...
53
10. INTANGIBLE ASSETS
GROUP Purchased software
Counter automation
project software
Total
P P P Cost: At 1 April 2008 2,523,873 3,654,005 6,177,878 Additions - - - At 31 March 2009 2,523,873 3,654,005 6,177,878 At 31 March 2010 2,523,873 3,654,005 6,177,878
Accumulated amortisation: At 1 April 2008 1,714,977 3,507,845 5,222,822 Amortisation 494,343 146,160 640,503 At 31 March 2009 2,209,320 3,654,005 5,863,325 Amortisation 305,660 - 305,660 At 31 March 2010 2,514,980 3,654,005 6,168,985
Net book value: At 31 March 2010 8,893 - 8,893
At 31 March 2009 314,553 - 314,553
At 1 April 2008 808,896 146,160 955,056
INTANGIBLE ASSETS
CORPORATION Purchased software
Counter automation
project software
Total
P P P Cost: At 1 April 2008 2,437,329 3,654,005 6,091,334 Additions - - - At 31 March 2009 2,437,329 3,654,005 6,091,334 At 31 March 2010 2,437,329 3,654,005 6,091,334
Accumulated amortisation: At 1 April 2008 1,646,052 3,507,845 5,153,897 Amortisation 483,649 146,160 629,809 At 31 March 2009 2,129,701 3,654,005 5,783,706 Amortisation 298,735 - 298,735 At 31 March 2010 2,428,436 3,654,005 6,082,441
Net book value: At 31 March 2010 8,893 - 8,893
At 31 March 2009 307,629 - 307,624
At 1 April 2008 791,277 146,160 937,435
53
54
GROUP CORPORATION 2010 2009 2010 2009
P P P P
11. INVENTORIES
Definitive stamps 281,756 439,911 281,756 439,911 Postal orders and postal stocks 23,272 52,748 23,272 52,748 Kiosks, nests, pillar boxes and equipment 109,579 113,003 109,579 113,003
Stationery and other consumables 2,796,410 1,189,506 2,796,410 1,189,506
Total inventories at lower of cost and net realisable value 3,211,017 1,795,168 3,211,017 1,795,168
12. TRADE AND OTHER RECEIVABLES
Trade receivables 31,396,255 21,368,637 29,363,603 17,756,033 Receivables from related parties (804,828) (463,746) - 463,746
30,591,427 20,904,891 29,363,603 18,219,779 Staff advances 539,087 301,385 475,406 237,704 Prepayments and deposits 2,559,521 1,631,455 2,458,369 1,530,303 Other receivables 5,014,930 2,631,563 4,859,408 2,476,041
38,704,964 25,469,294 37,156,785 22,463,827
Trade receivables are non-interest bearing and are generally on 30-60 day terms. Staff advances may be up to 6 months.
- Trade receivables Neither past due nor impaired 3,082,136 4,083,859 1,816,833 1,782,227 less than 30 days 12,627,307 11,779,210 12,627,307 11,779,210 between 30 days and 60 days 5,153,268 4,568,800 4,562,447 4,419,644 between 60 days and 90 days 4,637,220 195,691 4,495,677 49,236 more than 90 days 6,465,223 1,942,561 6,430,238 1,390,945
(568,900) (1,201,484) (568,900) (1,201,484)Net carrying amount 31,396,255 21,368,637 29,363,603 18,219,779
Notes to the Financial Statements Continued...
55
The movement in the provision for impairment of trade and other receivables is set out below:
Provision for doubtful debts
GROUP Individually impaired
Collectively impaired Total
P P P
At 1 April 2008 - (1,385,532) (1,385,532)Charge for the year - (1,060,796) (1,060,796)Unused amounts reversed - (715,459) (715,459)
At 31 March 2009 - (3,161,787) (3,161,787)Charge for the year - 632,583 632,583 Unused amounts reversed - 1,960,303 1,960,303
At 31 March 2010 - (568,900) (568,900)
Provision for doubtful debts
CORPORATION Individually impaired
Collectively impaired Total
P P P
At 1 April 2008 - (1,385,532) (1,385,532)Charge for the year - - - Unused amounts reversed - 184,048 184,048
At 31 March 2009 - (1,201,484) (1,201,484)Charge for the year - 632,583 632,583 Unused amounts reversed - - -
At 31 March 2010 - (568,900) (568,900)
13. CASH AND SHORT-TERM DEPOSITS GROUP CORPORATION
2010 2009 2010 2009 P P P P
Cash at banks and on hand 19,616,011 14,681,266 18,174,859 13,675,900 Short-term deposits 28,790,273 47,576,748 28,790,273 47,576,748
48,406,284 62,258,014 46,965,132 61,252,648
Short term deposits are made at for varying periods between one day and three months, depending on the immediate cash requirements of the group, and earn interest at the respective short-term deposit rates.
55
56
14. STATED CAPITAL AND RESERVES
GROUP CORPORATION 2010 2009 2010 2009
P P P P Stated share capital Stated capital held 100 % by the government of Botswana 38,431,729 38,431,729 38,431,729 38,431,729
Other capital reserves At 31 March 199,761 199,761 199,761 199,761
Revaluation reserve
The revaluation reserve is used to record revaluation surpluses recognised on revaluation of property and equipment as well as deficits to such an extent that such deficit relates to an increase on the same asset previously recognised in equity.
15. INTEREST BEARING LOANS AND BORROWINGS
GROUP 2010 2009
P P Current Government of Botswana:
Loan 17 - 76,129 Loan 21 - 232,422 Loan 22 16,934 15,656 Loan 23 2,119 1,957 Loan 24 36,400 33,654
55,452 359,818
Non- current Government of Botswana:
Loan 22 - 16,934 Loan 23 - 2,119 Loan 24 177,825 214,224
177,825 233,277
The loans are unsecured and consist of advances given to Botswana Post by the government of Botswana.
Notes to the Financial Statements Continued...
57
15. INTEREST BEARING LOANS AND BORROWINGS continued...
CORPORATION 2010 2009
P P Current Government of Botswana:
Loan 17 - 76,129 Loan 21 - 232,422 Loan 22 16,934 15,656 Loan 23 2,119 1,957 Loan 24 36,400 33,654
55,452 359,818
Non- current Government of Botswana:
Loan 22 - 16,934 Loan 23 - 2,119 Loan 24 177,825 214,224
177,825 233,277
The loans are unsecured and consist of advances given to Botswana Post by the government of Botswana.
GROUP CORPORATION 2010 2009 2010 2009
P P P P 16. GOVERNMENT GRANTS
At 1 April 15,991,010 5,650,200 15,991,010 5,650,200 Received during the year 6,013,378 11,000,000 6,013,378 11,000,000 Released to income statement (2,372,675) (659,190) (2,372,675) (659,190)
At 31 March 19,631,713 15,991,010 19,631,713 15,991,010
Current 5,662,755 1,130,040 5,662,755 1,130,040 Non- current 13,968,958 14,860,970 13,968,958 14,860,970
19,631,713 15,991,010 19,631,713 15,991,010
57
58
GROUP CORPORATION 2010 2009 2010 2009
P P P P 17. TRADE AND OTHER PAYABLES
Trade payables 36,872,322 28,915,507 35,441,808 26,964,786 Other payables 51,416,600 40,629,418 50,668,861 39,374,063 Due to related parties (804,828) (463,746) - -
87,484,093 69,081,180 86,110,668 66,338,849
18. FINANCE LEASE OBLIGATION
Finance lease obligation 11,855,314 803,046 11,270,802 - Short term portion disclosed under current liabilities (2,904,797) (319,978) (2,669,500) -
Long term portion 8,950,516 483,068 8,601,301 - - -
11,855,314 803,046 11,270,802 -
19. DEFERRED TAX
Deferred tax (liability) asset
Accelerated capital allowances for tax purposes (30,705) (65,762) - -
Recognised in other comprehensive income (221,485) - - -
(252,190) (65,762) - -
Reconciliation of deferred tax asset (liability)
At beginning of the year (65,762) 4,337 - - Originating temporary difference on tangible fixed assets 35,057 (70,099) - -
Originating temporary difference on revaluation of property (221,485) - - -
(252,190) (65,762) - -
Notes to the Financial Statements Continued...
59
20. PROVISIONS
Reconciliation of provisions - 2010
Opening balance Additions
Utilised during the
year
Reversed during the
year Total
Severance pay provision 190,732 52,619 (4,909) - 238,442
Reconciliation of provisions - 2009
Opening balance Additions
Utilised during the
year
Reversed during the
year Total
Severance pay provision 149,486 126,570 (32,389) (52,935) 190,732
21. RELATED PARTY DISCLOSURES
Below is a summary of the total amount of transactions that have been entered into with related parties:
Sales to related
party
Purchases from related
party
Amounts owed by related
party
Amounts owed to related
party P P P P
Botswana Couriers (Pty) Ltd- subsidiary 2010 - - 679,970 124,858 2009 - - 463,746 -
Terms and conditions of transactions with related parties The sales to and purchases from related parties are made at normal market prices. Outstanding balances at year end are unsecured and interest-free.
GROUP CORPORATION 2010 2009 2010 2009
P P P P Compensation of key management personnel Short- term employee benefits 5,116,891 4,730,041 3,437,976 3,464,254 Post- employment and medical employee benefits - - - -
5,116,891 4,730,041 3,437,976 3,464,254
59
60
22. COMMITMENTS AND CONTINGENCIES Operating lease commitments- Corporation as lessee Future minimum rentals payable under non-cancellable lease at 31 March are as follows:
GROUP CORPORATION 2010 2009 2010 2009
P P P P Within one year 1,870,680 1,892,989 1,870,680 1,892,989 After one year but no more than 5 years 1,418,737 4,253,145 1,418,737 4,253,145 More than 5 years - - - 3,289,417 6,146,134 3,289,417 6,146,134
Operating lease commitments- Corporation as lessor Future minimum rentals receivable under non-cancellable lease at 31 March are as follows: Within one year 550,963 546,335 550,963 546,335 After one year but no more than 5 years 925,074 1,349,313 925,074 1,349,313 More than 5 years - - - - 1,476,036 1,895,648 1,476,036 1,895,648
Guarantees
Botswana Postal Services has provided the following guarantees at 31 March 2010: The obligations of certain employees under Motor Vehicle, Housing and Personal loan schemes with Botswana Savings bank to the extent of P 3 319 216 .
Pension
In 1989 BotswanaPost employed former Government employees who transferred to the Corporation. This comprised employees that had formerly been employed by the departments of Posts and Telegraph. Those citizen employees who were transferred from Government in 1989 are covered under a separate defined benefit pension scheme to Government employees to which the Corporation has not made contributions.
These employees who were members of the Government defined benefit pension plan are also eligible to become members of the BotswanaPost Staff
Pension Fund which is a defined contribution plan.
An actuarial valuation of the of the Botswana Postal Services employees and pensioners entitled to benefits under the rules of the Public Service of Botswana Pension Scheme was carried out as at 31 March 2010, which revealed an estimated contingent liability of P88 million, relating to the period of their employment with the Corporation. There is uncertainty as to whether or not Botswana Postal Services has any liability in excess of the amounts receivable from the Botswana Postal Services Staff Pension Fund. The discussions with the relevant Government officials had not been finalised as at the date of issue of these financial statements.
The ultimate outcome of the matter cannot presently be determined, and consequently no provision for any liability that may result has been made in these financial statements.
Notes to the Financial Statements Continued...
Botswana Postal Network
As at 31 March 2010
BotswanaPostP O Box 100Gaborone
www.botspost.co.bw