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Otago Daily Times, Issue 20828, 21 September 1929, Page 10

COMPANY BALANCE SHEETS. TEE NORTH OTAGO FARMERS’ COOPERATIVE ASSOCIATION, LTD. Dividend Paid-up General Net per July 31. capital, reserves, profit. cent. £ S e 1920 .. 87,500 29,048 13,728 8J 1921 .. 37,500 18,147 13.358 T 1922 .. 50,085 i 8,863 t 9,284 5 1923 .. 50,270 5,439 -f 1,344 5 1924 ~ 50,310 1,609 241 1925 .. 50,860 307 38 1926 50,860 1,671 3,364 1927 .. 50,860 1,375 1.954 1923 .. 50,860 *966 2,133 5 1929 .. 50,907 *705 2,284 5 * Subject to income tax. t Loss. _ The net profit ’’of £2284 shows a slight rise on that of • the preceding year, but docs not seem in itself to justify the payment of a 5 per cent, dividend. A sum of £2545 is required to meet the" proposed distribution, and the net surplus falls short of the amount by some £260. Income tax has also to be allowed for and will make a, further inroad upon reserves. The same procedure was followed 12 months ago, but thera is not the advant* age now of an undivided surplus brought forward from previous years that there was on that occasion. The more prudent step would appear to be to conserve the surplus meanwhile, as it is self-evident that the policy of distributing all profit earned for the year, and more, in dividend cannot be continued indefinitely, and it would be moie reasonable not to antici pate improved results in the future, as is apparently being done. The gross profit, at £18,409, continues to be remarkably consistent. As a return upon the capital invested, it might be deemed very- satisfactory, were it not that financing is chiefly effected by deposits, which exceed the paid-up capital. The nature of the expenditure is fully detailed, although, except in respect of depreciation, it is entered in one sum. Twelve months ago the carry forward was subject to income tax, but as no deduction from the balance appears for that item in the present statement, it may be assumed that it has been included instead among the past year’s expenses, leaving the latest claim, in respect of 1928-29, still to.. be settled. The relation of expenditure to gross profit has been as follows: Ex- Gross Ratio Pendlturo. profit. per cent. £ £ • • 10 > 002 32,730 58.06 J 920-21 ~ 20,354 16,990 118.76 1921-22 .. 17,922 8,638 207.48 1322-23 •• 16 ' 452 15,107. 108.90 1923-24 .. 15.700- 16,791 03.50 1024-25 .. 18,571 18,610 99.79 J 925-26 •• 15 ’ 284 18,648 81.06 1926-27 .. 14,747 16,701 88.30 1827- .. 15,953 18,086 88.21 1828- .. 16,125 18,409 ’ 87.59 The main asset is sundry debtors, amounting to £44,735 after the deduction of bad and doubtful debt reserve. Although they are all placed under one heading, the nature of the individual items of sundry debtors may differ widely. Their aggregate is still diminishing, and from the directors’ report it is gathered that this is due to bad debts being written off. No encroachment is being made on the special reserve, and the fact of bad debts being directly charged to the profit must tend to keep expenditure high. It would be interesting to know what relation their reserve bears to the total sundry debtors. The policy of making bad debts directly to profits is commendable, but shareholders might well ask how far back the writings-off date, and how long the process is likely to last. Stock, nt £37,769, is slightly higher than it stood a year ago, but still remains under its average of prior -years. This curtailment may, however, be a source of strength, and it has resulted in a more favourable relation between stocks and gross profit. On account of its varying character, depreciation will be felt more in some sections than others, making the valuation more complicated.' The bank holds the large sum of £13,596, and this might suggest that some considerable capital expenditure is contemplated, otherwise/it would be expected that some repayment,, would be made in the fixed deposits. a >r Ico-ssbojd property remain at £29,062. No allowance for depreciation has been made, and the fact that no capital expenditure appears to have taken place for some time lends colour to the suggestion, that something in that direction is now contemplated. Both the plant and fittings groups have apparently been . o. depreciation, the allowance Mf557 30 v. - vhlC j- educes the aggregate to £4657, bemg distinctly generous. Creditors incurred in the ordinary course have been reduced to £1844, while customers credit balances at £8152 are also down Deposits, which have slightly men at £65 752, ard larger than the aggregate of the rest of the'liabilities, ineluding capital. It is thus evident that the company is under-capitalised, and with uncalled capital equivalent to the amount in circulation, the obvious course Pear . to , be to , make the shares fully paid and reduce the heavy bill that must -necessarily be incurred for interest. hether or not there are obstacles in {”f, meal ? r tl !" c to, such a procedure, it later 18 WI bave to come sooner or BANK OF ENGLAND RETURN.' ; (United Press Association.) (By Electric Tfilporaph—Copyright.) T , ~, .LONDON. September in. reSn;- loWlnff 19 Ban . k of England ISSUE DEPARTMENT. Notes issued £395,581.332 debt 11.015 100 Uther Government securities 235.513,570 oilvcr coin •, ( , 11 41 '' 846 364 Gold coin and bullion ~ 135,581,352 l L° tal £395,581,352 BANKING DEPARTMENT. Proprietors’ capital .. .. £14.553,000 Public * deposits" S’ofs Other deposits " omSSi Seven-day and other bills 2,305 Total .. £136,328,055 Government securities .. .. £73.781 855 Other securities .. .. .. 27,481^09 o,n 1.339.648 Total £136,328,655 • T !ie Proportion of reserves to liabilities rj 1Q ± P, 01 ' cent - SW loans are R per cent ’ ; three months’ bills at 5 15-32 per cent.—Australian Press Associ at ion • WHEAT. FLOUR. ETC. (United Press Association.) (Gy Electric Telegraph—Copyright.) „ LONDON, September 10. Wheat: Cargoes were featureless ut the opening, but closed steadier. Parcels are steadier, and have better inquiry. FuturesLondon, September 52s lid; October and November 52s 7d; January, 43s sd. Liverpool: October, 9s 6|d: December, 9s lid; March. 10s sd; May, 10s BJd. the spot trade is slow, and tending to be easier Australian, ex ship. 60s 6d. * s •luiet. Australian, cx store, 3Ga 9d. ’ ■ ■ Oats are "weaker. Beans are steady. Peas are quiet.—Australian Press Association. LONDON METAL MARKET. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, September 19. (Received Sept. 20, at 9 pm) Copper; Spot, £74 11s KUd; forward £75 3s ltd. Electrolytic: Spot, £B4 ss; forward £B4 15s. ’ Wire bars, £B4 15s. Spot, £23 12s 6d; forward, £23 Spelter: Spot. £24 7b Cd; forward £24 lor.. Tin: Spot, £204 8s 9d; forward, £2OB 3a 9d. Silver; Fine. 23Jd; standard. 25§d per oz—Australian Frees Association. ISRAX BROS, FRUIT FARM. AND DAIRY PRODUCE MERCHANTS. DUNEDIN WRITE US FOR MARKET REPOKI HAVE INQUIRIES FOR ALL LINES —Advt,