Thank you, Chair. According to Denel's annual report of 2005, the net loss for the year is significantly worse than the loss of the previous financial year, which came to R377,5 million. According to the report, the major contributors to this year's financial performance were, mainly, the failure to achieve the sales target, an increase in provision for contract losses and the adverse impact of the exchange rate.
According to Ernst and Young, included in the cost of sales is an amount of R697,8 million, representing the expected contract loss on the Rooivalk attack-helicopter project. Unfortunately, they did not obtain all the information and explanations they considered necessary to satisfy themselves that this provision is fairly stated. They conclude by stating:
These conditions, along with other matters, as set out in the director's report, indicate the existence of a material uncertainty, which may cast significant doubt on the group's ability to continue as a growing concern.
Cash is the lifeblood of any living organism. And unless drastic steps are taken ... [Time expired.]