Annual financial statements: (i) Section 55(1)(a) of the PFMA requires the accounting authority to keep full records of the financial affairs of the company and the annual financial statements should fairly present the state of affairs of the company, its business, its financial results, its performance against predetermined objectives, and its financial position as at the end of the financial year concerned. Material misstatements were identified during the audit, certain of these were corrected by management and those that were not are included in the basis for qualified opinion paragraph, and (ii) section 55(1)(d) of the PFMA requires the accounting authority to submit their Annual Report and Annual Financial Statements to National Treasury within five months after their financial year end. The company submitted its Annual Report and Annual Financial Statements for the year ended 31 March 2011 later than the prescribed dates, on 16 September 2011.