COMMERCIAL

Press, Volume LXXVII, Issue 23446, 29 September 1941, Page 3

COMMERCIAL

SOUND LIQUID POSITION N.Z. FARMERS’ CO-OP. ACCOUNTS An improvement of £93,768 in the liquid position of the New Zealand Farmers’ Co-operative Association of Canterbury, Ltd., was reported by the chairman, Mr C. P. Agar, to the annual meeting of the company on Saturday. In spite of war-time difficulties, the nat profit was £55,121, a decrease of only £4337, Mr Agar said. “The figures of the profit and loss account give a clear picture of the tren of our business,” said Mr Agar. “Gross profit totalling £232,527 was actually higher than the previous year by £3692, but this increase was offset by heavier expenses, the principal items of which were:—Depreciation £3660, repairs and renewals £IOOO, salaries and wages £2300. “The depreciation figure is £14,862 against £11,203 in the previous year. This increase is brought about by the fact that the Commissioner of Taxes issued a revised schedule of allowable depreciation rates. The amount which we have written off is the full allowable depreciation on our buildings, plant, furniture and machinery. “It is proposed to deal with the net profit of £55,121, as follows:—Dividend of 41 per cent, on first preference shares, £6750; dividend of 4 per cent, on A preference shares, £8000; dividend of 4 per cent, on B preference shares, £3440; dividend of 2 per cent, on paid-up capital of ordinary shares, £2294; transfer balance to provision of taxation account, £34,637 4s lid; total, £55,121 4s lid. “These dividends, if agreed to by the meeting, will be paid out immediately. The company has paid social and national security taxes, and the dividends are therefore free of these taxes in the hands of the shareholders, “The rates proposed are in accordance with the articles of association of the company. “The amount of £34,637 which it is proposed to transfer to provision for taxation account will more than cover our liabiltiy for taxes, and it is anticipated that there will be a surplus estimated at £I7OO which will in effect be held in reserve in this account. “While it is not my purpose to-day and in a war situation such as at present exists to criticise unnecessarily the burden of taxation which is placed on companies such as ou r u, I think it is only right and proper that shareholders should realise just what a load this business is carrying. Out of the not profit of £55,121 the shareholders receive £20,484, while the total of taxes is £32,900, dr put another way—from every pound of net profit earned by the association the Taxation Department collects 12s Oijd, leaving 7s 11d with which to pay dividends and to build up ihc reserves which the ordinary prudent business organisation would desire to do. “The finances of the association are in a sound and liquid position. There are three items as follows:—New Zealand Government War Loan and inscribed stock at cost, short date investments at cost, bank credit and cash in hand, which together total £294,996, and which in total show an improvement in the liquid position of the previous year’s balance-sheet of £93,763. “Against these liquid assets of £294.996, we have current demand liabilities as follows: Amount at credit of current accounts, £222.279; sundry creditors, £76.723; balance of profit and loss account, £55,121. As this last amount has to be distributed in diviend and taxation, those current demand liabilities total. £354,123, and the directors feel that the total of the liquid assets as mentioned £294,996 is only reasonable provision against these liabilities. Messrs C. G, C. Harper, C. G. Jarman, F. E, Jones, H. J. Kornahan, and A. R. Turnbull were re-elected directors. Mr H. E. Robbins, for the shareholders, moved a vote of thanks to the directors and staff. Replies were made by Mr Agar, the secretary (Mr George Gibson), and the merchandise manager (Mr L. G. K. Steven). Mr Agar was rc-clcctcd chairman of directors at a meeting of directors held after the annual meeting. STOCK SALES KAIKOURA There was a fairly large entry at the stock sale at Kaikoura on Friday. There was a good attendance and bidding was keen. Tile following prices were realised: Fat cows, £5 10,s to £7 10s; dairy cows, £7 5s to £9 12s Gd; store cows, £3 10s to £5 IJis: springing heifers, £4 15s to £7 12s Gd; yearling heifers, £4 3s; yearling steers, £3 to £3 15s. Sheep: Fat ewes, 15s to 20s; wether hoggets, 19s Gd. Sundries—Second-hand corrugated iron brought 5s to 8s 6d per sheet. Property.—lt is reported that 336 acres at "Mount Lud” and 550 acres at Ludstone had been sold. MINING REPORTS Maori Gold Dredge, Ltd.—The plant is laid up with a broken top tumbler shaft. The new shaft is nearly ready for assembling and it is expected that the dredge will resume on Friday. Snowy River Dredge.—The return was 168ioz from 22,000 yards in 98 hours. Ulackball Creek.—3soz in 98 hours. Pending repairs to one of the airtight compartments which sprang a leak the Kanicri dredge has been laid up since Thursday. An. inspection is to bo made in the coming week by a diver, following which the necessary steps will be taken to effect repairs. Arahura. —Arahura Gold Dredging Company has declared its fifth dividend of Is a shate, ordinary and deferred.