There were many issues that the Committee wanted to discuss with Denel, but there was little time left to do so. The Committee was of the view that Denel was a strategic asset for the country, but that Denel faced serious challenges. In the independent auditor's report, it said that the Group incurred a total comprehensive loss of R205 million for the year under review, which resulted in an accumulated loss of R4.8 billion as at 31 March 2010 (page 138 of Annual Report). This was a serious challenge. The Committee sympathised with Denel, but had to look at the situation realistically because the Denel Group was in trouble. The Directors' Report was very good, as it was honest (pages 140-151 of Annual Report). The Committee agreed that many of Denel's business entities were functioning very well and had produced good financial results. Progress had been made but the Report showed that DSA had made a major financial loss.