Shares and fears: BTCL boss speaks

On the P371 million loss reported for the year ended March 31, 2016.

“What happened in the last year or two is that we had to undergo a proper valuation of the company in preparation for listing because it is through valuation that you arrive at the selling price of the shares. As part of that process, had an asset register where you actually count the physical assets, whether they are creating value or not. You can have a building that has been lying idle and you still count it, until the point at which you dispose of it. What happened was that our asset register showed that the value of physical assets was higher than the value on a cash generation point of view. In other words, not all assets were creating value. We had to do a book entry exercise and record an impairment to be applied in our books. We had to write down some of these assets and apply those book entries into our financial statements.