COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 19038, 7 December 1923, Page 4

COMPANY BALANCE SHEETS.

THE CANTERBURY FROZEN MEAT AND DAIRY PRODUCE COMPANY (LTD.).

Considering the magnitude of the figures involved, those disclosed by the latest annual statement of accounts bear a remarkably close relation to the figures of the year preceding. The profit of £31,362 is practically the same, and two-thirds, approximately, of it is distributed among the shareholders as before. Insurance reserve benefits by £SOOO, and renewals reserve by £5231. After these transfers are made, the profit is overdrawn, by £619, which comes out of the floating balance.

On this occasion the information afforded by tho profit and loss statement, while still of the scantiest nature, has the important addition that the provision for depreciation is included. No doubt this matter has received due attention in previous periods although reference is net made to it in the published accounts, and it may be noted that this is the first time, in recent years at any rate, that the fixed assets have a reduced value from that of the 12 months preceding. The figures, £331,936, including land, buildings, plant, and machinery, shows a drop of about 1 per cent. > The liquid assets, totalling £426,967, consist mainly of stock, consignments, and advances amounting to £316,905, the respective proportions of which are not given. War loan at £82,616 contributes something substantial to revenue. It possibly also strengthens reserves if the valuation is on the former conservative basis. Debtors stand at £28,846 — a decrease from last year. Whether this somewhat comprehensive term includes the bank balance, is not disclosed, but, with the large sum above-stated held in. war loan, it would naturally be assumed that it does. In this case the ordinary book debts will be comparatively small. The liabilities of the company to the public are £304,164. The provision for taxes will be an appreciable item here. This high amount is more than covered by the liquid assets, excluding the war loan. General reserve fund is unaltered. It was considerably augmented during tho “boom” period, and apparently it ia not judged necessary to add to it now. Insurance reserve is being steadily increased, and tire transfer of £SOOO this year brings it to £BO,OOO. Taken together these two reserve funds stand at £215,000, a. larger amount than the paid-up capital. There is a further reserVe for renewals and replacements. It is reduced by £2OOO, the expenditure on it during the year having been above the average and exceeding the amount charged to income by that sum.

The totals of the respective sides of the balance sheet have fluctuated considerably, but concurrently the surplus has been growing larger. For the past five seasons the figures are: 3918-19. 1919-20. 1920-21. 1921-32. 1923-23. £ £ £ £ Assets 1,059,693 950,905 766,634 751,871 758 003 Li.ibili- ' ties 636,198 519,840 319.359 299,513 304,164

Surplus 423,494 437,155 447,275 452,358 454,739 ho call has been made upon the ordinary shareholder during the year, nor has there been a further issue of preference shares. Tho capital is still fairly distributed between tho two classes. The former continues to receive 14 per cent, after the preference 6 per cent, dividend is met. In view of the depression prevailing in certain quarters in the frozen moat industry, such a result cannot be regarded as other than satisfactory.

Paid-up Capital, £212,500. Liabilities Div. Year to the Ord. ended Reserves. Profit. public, bonus Prof Nov. 30, £ £ £ p.c. p.c. 1919 ... 196,741 80,815 *636,198 14 6 1030 ... 210,103 43,330 *519,810 14 G 1021 ... 230,525 37,939 319,359 14 6 1923 ... 225,603 . 31,227 299,513 14 6 1923 ... 327,989 31,362 304,161 14 6 * Including advances from Imperial Govern' ment on wheat and wool.