SOUTH OTAGO FREEZING CO., LTD.

NZ Truth, Issue 938, 17 November 1923, Page 13

SOUTH OTAGO FREEZING CO., LTD.

Annual Report and Balance-Sheet. There is nothing to inform us as to the number of years this little freezing company has been m business, but it i» refreshing to Hml that it has been able to close its Beftßdh free of loss or anything to cause fear for the future. The fuct that the killing of sheep and lambs for the year ended August la»t shows a rather heavy decline m the numberß handled does not surpritio "Cambist." For the past five yearn, ho has warned the public that our flocks wore fast decreasing, and that there was a splendid opening for monetary institutions who \v*re busy farming the farmers to make advances to runhoidora to enable tho latter to breed up nuppUea. it Is not overstating the position to say that at present tho Dominie i needs at least four million more :theen to eat down the feed which goes to waste and to glvo tho freezing works .•supplies on a decent averago output. Iloc«?ntly, a couple of agency houses complained of tholr unprofitable bualur«s m thin country*. Thr>y stressed ih<« fact that they would not mnkc advance*. thouKh they evidently required the handling of much more exports than was comlnp to them. The fact Is. that these Institutions were so busy

"raking off" the profits of selling up land speculators that they

QUITE FORGOT THE FACT

that exports should be built up from fresh production. But is there not a subtle movement m the direction of i forcing our producers into the hands of the English Meat Trust abroad? Those who are supplying the freezing works should keep a sharp eye upon the benevolent Meat Barons who have recently been elevated from vulgar butchery into the Peerage classes. ? The authorised capital of this little concern Is £ 75,000 m £5 snares. Fifteen hundred shares are unallotted at date of the balance-sheet, while calls m arrears amount to £224. This leaves a paid-up capital at end of I August amounting to £06,555. In past years the proprietors have wisely built up reserves amounting to £17,000 and they had provision for income tax amounting to £4232 In hand when the accounts were brought to balance, (m the face of these figures, one must admit that a peculiar amount of caution and commonsense is apparent, a rather I unusual feature m business matters at the present time. Sundry creditors stands at £1646 which is a small matter, though It proves how closely the accounts have been adjusted. On the assets side of the balancesheet, land and buildings, less depreciation, have been put down at £60,589. Plant and machinery, on the same basis, figure at £20,025. Adding these together there is a total of £70,815, which considered m connection with the reserves already mentioned, goes & lons way to prove that the company HAS FULLY PAID I for its working plant and factory. It Is good to see so sound a method of business. Stocks on hand stand at £7388 and the valuation depends upon the manager's certificate. This method of accounting fails to gratify the critical mind of the present writer. It leaves too muph latitude m which to swing the cat round. When things are booming, values may be more dependable than when the markets dropi For that reason and a few others "Cambist" prefers a soundly kept stock account which will force the auditors to do a great deal more work than is the case on a manager's certificate. In other words, why not give the actual cost of all stocks? Accrued charges, ££2646; sundry debtors, £5816; farm stock and implements £1182, may all | be sound valuations, though there is, 1 possibly, a small margin of risk m the j figures mentioned. War loan £1650 fails to tell us if this Is market value or face value. If the latter, then something should be written off the discounted position of these securities. Deposits £6500 and cash m Bank of New Zealand £668, make a splendid finish to this side of the balance-sheet. No overdraft, and money to carefully carry on with. v WHAT A SOLID POSITION to start the coming year! The profit and loss account is pot sufficiently detailed to allow of much comment. The year started with £3023 and closed with £7082 after paying outgoings and providing for bad debts and depreciation £2800. The bad debts £710 may possible be connected with the retail butcher's shop, which the company has leased with a purchasing clause. These shops have a nasty habit of making bad debts and It seems wise to get them into other hands. The shareholders get 6 per cent, on the capital invested which is quite enough. A small dividend and a large reserve fund are blessed things m these times when greed seems to have got control of brain and heart. Moreover, they are the sign of sound business and prudence, two matters much required m the race of progress which we all desire. Let it be hoped that there will be a fuller year of killings than was the case for the period Just finished. This kind, of company deserves well of its supporters and its progress is a matter of interest to nil i who are proud of the splendid Dominion we live m. No bank overdraft. Everything paid for. Money to work with. Good luck to it!