HIKURANGI DAIRY CO, LTD.

NZ Truth, Issue 943, 22 December 1923, Page 13

HIKURANGI DAIRY CO, LTD.

Nineteenth Annual Report and Bal-

ance- Sheet.

For a company closing its hooks at end May last, the date of the general meeting seems to be of the "no hurry order." The general meeting took place m the Hikurangi Hall on August 25. S* far as this writer can see, the average payments for butter fat were rather low, considering the range of prices obtained for the manufactured article. The company consigned its output on open consignment to Britain and realised prices ranging from 140s to 209s 4d per cwt. With the policy adopted by the company "Cambist" agrees, but it would seem that there was more of the 140s price about the business than of the 209s 4d rate. The amount of butter manufactured was 663 tons 6cwt 3qr, a decrease of 43 tons compared with the previous year. Tho report issued by the salaried chairman fails to give any reason for the falllng-off m the manufacture, nor does it explain m detail the course of the sales made m Britain. Furthermore, he did not mention why war loan investment stood at £200 and why New Zealand Bacon Co. shares were set down aa worth £1000 m the balance- aheet. In "Cambist's" opinion theae inflated assets twist the profit and loss oooount

OUT OF SHAPE. It seems to him that by carrying: these assets at more than market values the profit Claimed at £3045 15s 6d for the year covered by the accounts is to some extent a loose Jointed manner ot getting through with serious financial duties. To base the commitments absorbing £2926. 4s. mentioned In his report on such results, is taking a big jump over the hurdle of. Bay, a manifest loss oh the bacon company shares of £1000. Still, there are three shipments of butter unsold at the date ot the meeting. Whether these belong to the year covered by the accounts under notice, he did not mention. There is not a word About the over* run ln the report or the annual summary, nor is there any mention of the grading marks received for the butter when exported. However, the "company were successful exhibitors at yeveral of the winter shows In different parts ot the Dominion," a possible •ign of excellence m small parcels, though not, of course. Quite convincing with the bulk production. On looking at the balance-sheet the outstanding feature is the capital account. Practically the whole of the authorised capital (£12,000) subscribed, and £91*0 of that amount is paid up. This has put the company In a

BETTER FINANCIAL POSITION tlian is the case with the majority of such concerns, but there are calls outBtandlnir amounting to £2102, which should be collected as soon as posslblo. It Is brazen folly to treat these cnlls as assets when apparently the parties owing the money are not made pay up and look handsome. The Tconsequoncv of such tinkering With capital liabilities is to be seen m the overdraft ol £33d6« which disfigures the Pl^uro. besides sundry creditors, i3B2'J. "Cambist" must commend the compiler's of the balance-sheet for the very detailed set-out of the assets, though he may not be quite pleased with some of the items'. It seems to him that all of the side lines could be dropped and the money better used on the manufacturing sldo of Mio business. Regarding the cream teats it Is surprising that any supplier should een.l forward stuff that only reaches 20 p*r cent, of butter fat. In this writers opinion ouch suppliers should be refused the services of the company and told to learn the simple rudimentß <f honeaty. The average cream test, 37,.5S per cent.. Is very low. It ih tlfne that all of the suppliers woke up to the fact that such stuff makes a bad advertisement for North Auckihhfl. Evidently the Salaried ihstruct--dr haS A hard Job witli his pupils, for subh teats reflect ttpbn the suppliers, not 6h the hian who iB trying to Uplift them. It Is splendid to find £860 j»er annum expended on Instruction. That 18 a trUly co-operative method, ahd one tfi&t Will repay fourfold the moderate expenditure.