CANTERBURY FARMERS

New Zealand Herald, Volume LXIX, Issue 21296, 24 September 1932, Page 9

CANTERBURY FARMERS

ANOTHER DIFFICULT YEAR

FURTHER LOSS OF £33,826 LARGE PROVISION FOR BAD DEBTS A loss of £33,826, which includes £27,508 provided for bad debts, is dis- *" closed in the annual accounts of the Canterbury Farmers' Co-operative Association, .» Limited, for the year ended July 31. In -3 the previous year the company made a * loss of £97,081, as against a profit of , £2973 in 1930. * i The directors' report stated that the world depression had continued into the third year, making further serious inroads into the resources of the Dominion. South Canterbury had been particularly unfortunate in suffering a five months' dry spell, with its attendant difficulties to ■, farmers in producion, added to which two floods at harvest time created a seemingly impossible position. Many farmers had the unpleasant experience of " seeing tho most of their year's work brought to naught. The directors had hoped that the heavy

provisions made against bad debts in the •' previous year would have sufficed, and • had reasonably fair climatic conditions been experienced the association could at ' least have held its own, notwithstanding I the low prices ruling. The reduction in . farmers' income had necessitated the -> greatest care in guarding the company's resources, at same time giving very necessary help to the farmers carrying on.

Full depreciation of buildings, fixtures, and plant had been made, amounting to * £4987, and administration costs bad been reduced by £8867. Working expenses had - been reduced "by £15,848 during the last 7. two years. Merchandise trading conditions a had naturally shown contraction owing to lessened buying power of all concerned, „ but the company had come through the year with a diminished turnover of onlj slightly over 10 per cent. - In spite of the conditions it had beep possible to reduce the company's financial obligations, instanced by following figures, with the previous year's amounts in, parentheses Debentures, £249,584 (£250,408; bank overdraft, £130,977 . (£127,702); overdrafts in London, £5973 ' (£6124); current accounts in credit,. * £16,752 (£21,593); totals, £403,286 (£405,827). The paid capital of the association is £255,878 and there are also £246,318 6 J per cent debentures, with accrued interest amounting to £3266. Assets total £576,584. s In 1930, the last year in which the association made a profit, £7OOO of the amount available in the appropriation account was placed to reserve for: bad and doubtful debts, leaving £2041 to carry forward. The loss of £97,081 sustained in. 1931 extin- ■ " guished the company's reserves and left a debit balance of £67,109 on capital account. No dividend has been paid on th© 6 per cent cumulative preference shares, which number 40,000 fully paid to £3 15s, since 1929, when arrears for la2B were also distributed.