2.3  Working Capital 3.0 Management Letter 3.1  Impairment Assessment of Property, Plant and Equipment  financial support by way of approval of tariff increases, operational subsidy and investment in infrastructure to safeguard  the going-concern status of the Corporation.  The working capital position of the Corporation as at 31 March  2018 showed current assets of P1.80 billion and current liabilities  of P3.43 billion which resulted in a net current liabilities position of  P1.64 billion. Current liabilities included: P1.56 billion Trade and Other Payables, P954.04 million advances on consumer-financed projects and P436.52 million Borrowings of which P434.26 million  was from the Industrial and Commercial Bank of China. The following were some of the significant matters raised by the  auditors and the management responses thereto: The auditors noted that the Corporation carried a significant  fixed asset base in its statement of financial position and that as  per International Accounting Standard 36 – Impairment of assets,  these assets are subject to impairment assessment should any  indicators of impairment exist. These indicators include factors  such as physical damage, declining economic performances of  the assets, decline in market value, significant changes with  adverse effects on expected use of assets, etc.  The auditors observed that the historical continuing losses incurred by the Corporation, construction and equipment defects in plant for which remedial work was underway and  plant not being operated at its optimal capacity indicated a  possible impairment of its asset base, particularly the generation  plant. Accordingly, management performed an impairment assessment of the Morupule B Power Station with some key  assumptions, approach and results. The auditors highlighted the following in relation to evaluating  management assumptions:  Expected units generated – There was inconsistency in this  assumption as units generated were forecast to be less after  2021/22. In previous year’s assessments, it was expected that  152 