COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 18735, 13 December 1922, Page 4

COMPANY BALANCE SHEETS.

THE GISBORNE SHEEPF ABATERS’ FROZEN MEAT AND MERCANTILE COMPANY (LTD.). / Paid-up Capital, £380,370 Is. The statement of accounts for the year ended August 31 Just, shows a loss on the year’s working of £12,118 12s lOd. Of this the mercantile department is responsible for £638 8s 3d and tn© freezing department tor £11,480 4s 7d. When this loss is added to tho balance brought forward from previous years the total debit is £37,797 10s 6d. From the abbreviated profit and loss account there is not much information to be gathered. Depreciation does not find a place in it, nor provision for doubtful debts. It is a recommendation of the directors that the undistributed reserves available at January 31 next be used in this connection, depreciation dealing with plant only and provision being made for bad debts. This, however, is in the future. The balance eheet in contrast to the profit and loss account gives full details. Calledup capital stands at £389,973 11s, of which £9603 10a is unpaid—a factor that may bo taken as a sign of the general depression. On the other hand, there are calls paid in advance, £2158 17s 6d. y The largest liability is the debentures issued, £300,000. No mention is made as to tho length of their currency, whether they all rank equally, what tho rat© of interest is, and what the security. Further down tho sum of £224,837 18s lid is opposite banker’s balances. "Sundry creditors” at £28,3:12 Is 9d looks comparatively small, and below there is a further loan on which interest will require to be paid—namely £22,832 13s 4d, representing money on deposit. Mortgages show the not insignificant total of £7558 15s 2d. The in-terest-bearing liabilities are as follows: Debentures £299,625 0 0 Banker’s balances .. 224,837 18 11 Money on deposit .. 22,832 15 4 Mortgages 7,558 15 2 £554,854 9 5 This moans a high figure for annual interest charges. The total reserves come to over £50,000, and tho major portion of them is under the heading of balance reserves and surplus assets for share distribution. When they are placed against the debit on profit and loss and assets, such as cost of floating debenture issue, and amalgamation expenses, they are outweighed. There also appear surplus assets (property), realisation account £35,860 15s, the accruements, £21,614 5s sd. What the realisation value of the former is it would be difficult to toll, and there is a vagueness and indefiniteness about tho nomenclature of the latter that, a« an item in a balance sheet, can scarcely eonrmend it to shareholders. As already mentioned depreciation plays no part in tho past year's accounts. The assets, subject to its treatment, amount to not less than £662,501 0s sd. Stocks, shares, and loans, it is not stated if the last-named are fully secured, come to £32,608 ISs 7d. "Sundry debtors” stands at £126,690 8s lOd, the secured, partly secured, and guaranteed forming about one-half. Tho amount Reserved for bad and doubtful debts i» £12,562 19a 7d, which is evidently considered insufficient for the purpose. Stocks and materials are taken at £88,386 3s lid, after duo attention has doubtless been paid to anv possible shrinkage in values. The statement of accounts bnnga out clearly the depressing and harassing times through which the farming community has passed, and in facing the difficult position, the management must bo cheered by certain signs of improvement in tho general outlook.