COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 20870, 9 November 1929, Page 23

COMPANY BALANCE SHEETS.

MOSGIEL WOOLLEN FACTORY COMPANY, LTD.

•Excluding depreciation. .tJExctudlng special bonus of lOs per share. The considerable shrinkage that has taken place in the net profit for the past year, -which, at £15,990, is nearly down to two-thirds' of that of the preceding year, in no way affects the allowance of £SOOO for depreciation, or the transfer of £2OOO to reserve. At this time, however, there are no further funds to place to any special reserve, as, if the recommendation to distribute 10 per cent, to shareholders is adopted, the net surplus for the year will be overdrawn by some f 550. The shrinkage' is chiefly due to the smaller balance brought out on goods account. General disbursements, by rising to £12,856, have meant a Turther inroad of nearly £2OOO. but, as they are grouped, the source of the increase is not apparent. The other items of expenditure are little altered. The manner in which working expenses and factory maintenance are kept down to an even figure speaks well for the supervision exercised. Total expenditure has stood to gross profit since 1924 aB follows: Expenditure. Gross Profit. Ratio ,««.«- e fi percent. J2S2i 5 "• 23 - TBT 35 . 145 67.68 1925-26 .. 27,051 44,882 02.28 1926-27 .. 23,820 43,353 54.94 1927-28 .. 27,53t5 45,499 00.52 1928-29 .. 29,508 40,498 72.88 Charges can scarcely be said to 6tand in an excessive relation to the gross surplus, but they look large, when compared with prior, years. The decrease in reserves is due to'the absorption for its special purpose of the £6OOO placed aside 12 months ago for new buildings and plant. The result is shown in the valuation of land, buildings, and machinery.- which, after a capital expenditure of £17,662 has been incurred during the year, show an increase of £6662 only when the depreciation provision is applied. The reserve of £6OOO, although out of sight, still exists. A further. concealed reserve is contained in the warehouse property which remains at £6OOO. For a number of years there has been no alteration in the book value of that property, which, it may be assumed, has not remained stationary in its market.value. The probability is that its market value will continue to rise. , Cash assets aggregate £50,050, including the investment of £12,000 for the employees' benefit fund. Distributed between cash in hand and Government securities, they considerably exceed the amounts held either in fixed property or :n stock. -As shares have not been mentioned among the holdings, it comes as a surprise to find a sale of chemical shares has added £875 to reserves. The stock of goods at their different stages from the raw material to the finished article is reduced to £46,013—a movement for winch the falling prices of woo! ma 7,-S ve been responsible. Book debts and bills receivable at £25,817 are lower than they have been at -the closing date lor some years.. *io^ d , ry ™ c - red L tors are entered at fii,dUß. lhis figure w the maximum outside indebtedness, and the possibility is that the actual total is less. Provision for income tax and discounts on book 5l B Ji e lnoluded » and there may be other allowances, which are unlikely to be under-estimated. The employees' benefit fund, at £14,055, is steadily crowing, and has outstripped its relative investment by over £2OOO, but no doubt an adjustment will shortly be made. Reserve account is by ite latest addition, brought up to £38,655. When jj j a :L nK ba ' ance an «l other items arc a ? ?Z\ }*£ . tal R enera l reserves stand at £51,278. As they form only a part of the actual reserves, it is difficult to arrive at an estimate of what ratio the lull aggregate may have to the paid-up capital. There is no prospect of the necessity of bringing the hidden portion into the light of day, but shareholders see enough on the face of things to satisfy them as to the financial soundness of the concern without requiring to investigate the "reserve" reserve.

BANK OF ENGLAND RETURN. (United Press Association.) v . (By Electric Telegraph— Copyright.) *~"fi, *ll • L 9NDON, November' 7. lbs following is the Bank of England

,-c fin }roportio ? <>!, r eM*ves to liabilities Zs 1 per <; ent - Short loans are quoted 13-16 P per cent' n, ° nths ' bi,l ° at 5

MINING. f .hL h l Se t? retary ? f tta Dunedin Stock Exchange has received a report from the Winding Creek Gold Min’ag Comnanv is stated that a return of working 4 h 8 been obtalncd for 18 days’

LONDON STOCK EXCHANGE. (United Press Association.) (By Electric Telegraph—Copyright.) _ , „ LONDON. November 7. rhe following ar e the latest quotation, for Government seenritie., compared with the price, ruling laßt week:_

BRAY BROS. •FRUIT FARM, AND DAIRY PRODUCE MERCHANTS, DUNEDIN WRITE US FOR MARKET REPORT EAVE INQUIRIES FOR ALL LINES —Advt.

Paid-up capital : 1902-23 1, £83,45 17; 1924-2S K £95,380 Dividend and Goods Net Oct. 6. Reserves. account. *profit, bonus 1902 . .. 19J568 e 19,580 £ 6,288 p.c. 7 1907 , .. 17,242 14.59G 5,093 4 1912 .. 18,788 22,634 11,827 7 1917 , .. 26,164 36,542 10,012 9 1318 . .. 30,927 56,185 22,827 10 1919 . ,. 37,202 52,480 22,959 10 1920 . ,. 44,253 58,012 22,631 11 1921 , .. 46,722 59.041 22,149 11 1922 .. 47,487 61,985 24,946 11 1923 .. 52,125 57,032 21,319 11 1924 .. 44,358 43,353 18,693 10 1925 , .. 14,928 35.142 15,358 10 1926 . .. 50,454 44,543 22,064 10 192T .. 58,449 41,848 24,533 tio 1928 . .. 54,951 44,228 22,963 10 1929 , .. 51,278 38,851 15,990 10

ISSUE DEPARTMENT. Notes issued £391,262,400 Government debt Other Government securities Other securities Silver coin ... Gold coin and bullion 11,015,100 235,367,390 8,791,081 4,826,429 131,262,400 Total .. .. f391.262.400 BANKING DEPARTMENT. Proprietors' capital .. Rest .... Public deposits Other deposits Seven-day and other bills £14,553,000 3,154,381 9,526,637 100,367,521 2,864 Total .. ... £127,604,403 Government securities Other securities .. Notes £67,171,855 26,570,232 32,858,640 1,003,676 Total £127.604.403

e «. d £ s. 4 Imperial Console, 24 p.c .. 54 10 0 53 0 0 War loan. 5 p,a, 1923-47 . 100 10 0 S3 15 0 Conversion loan SJ p.c 76 0 0 "4 0 0 Victory 4 p.o. " 92 10 0 91 0 0 O'wealtb 6 p.a 1931-41 .. .. 103 1 3 100 0 0 C'wealtb 6J p.c, 1953-37 36 0 0 95 7 6 N.Z..6 p.c. 1936-41 ... " . 103 11 3 103 0 0 N.Z 4 p.o. 1929 94 7 6 94 0 0 N-Z 3J p.c. 1940 .." ... .. 86 13 9 86 5 0 N-Z. 3 p.c, 1945 75 5 0 "6 0 0 N-S-W. 6} p.c. 1930-40 .. . 101 5 0 101 5 0 tf.S.W t> p.o., ... 99 7 6 99 3 s NIS.W 55 p.c, 1922-32 .. . 97 15 0 9S1S 0 N.S.W 4 p. a , 1933 93 6 3 93 7 6 N.S.W 3J p.c 1930-50 .. 85 0 0 84 15 0 N-S.W 3 p.c. 1935 .„ .. 72 18 9 73 3 9 Vic 6J p.m.. 1930-40 93 0 0 93 7 6 Vic S p.m.. 1932-42 »0 0 0 89 13 6 Vic 4) p.a. 1D40-60 07 15 0 97 15 0 Vio 3* p.o. 1329-49 72 11 3 73 0 0 Via 3 p.c. 1929-40 ... .'. . 68 10 0 68 10 0 Q'land 6 p.o. 1930-40 98 15 0 99 0 0 Q'laod 3J p.o. 1930 69 16" 0 70 0 0 Q'land 3 p. 0 1922-47 . 99 15 0 99 1 3 8.A 61 p.c. 1930-40 . 101 0 0 101 0 0 S.A 3J p.m., 1939 83 0 0 82 10 0 S.A 3 p-c. 1918 ot alter .- 57 3 6 57 0 0 W.A 6 p.c 1930-40 .. .. . 100 5 0 100 3 8 W J 3J p.m , 1920-35 . 87 17 6 87 15 0 W.A 3 9 p.c. 1915-35 . 86 10 0 88 15 0 Tas GJ p.m 1930-40 . • 101 7 6 101 12 6 Tas 3J p.c. 1920-40 83 13 e 83 0 0 Tas 3 p.c. 1920-40 . 73 12 6 78 0 0