DOMINION RUBBER LTD.

Otago Daily Times, Issue 27386, 11 May 1950, Page 9

DOMINION RUBBER LTD.

Past Year’s Operations In presenting their annual report, the directors of the Dominion Rubber Company state that, owing to a change in the balance date, the accounts cover a period of 13 months. Production of rubber for the period from a total of 964 acres was 584,0001 b, representing an average crop of 6061 b per acre. This crop was marketed at an average price of 9.83 d per lb. A further area of 100 acres of jungle was felled and planted with high-yeilding strains of rubber during the period, making the total planted area now 1512 acres. The manager reports that the general condition of the estate is good and that buildings, plant, and equipment are in good order. The purchase from the New Zealand Malay Rubber Company, Ltd., of the adjoining estate of Ulu Kusial was approved, and the necessary resolutions for increasing the capital of the Dominion Rubber Company to enable the purchase to be completed were passed by shareholders during the past year, the report continues. On completion of the formal deed of transfer of the lease, the 25,000 fully-paid £1 shares will be issued to the vendor company. As from January 1, 1950, the combined estates have been operated for the benefit of the Dominion Rubber Company, ... ... Owing to a misinterpretation of the Malayan Income Tax Act, the amount provided in the accounts last year exceeded the amount claimed by the tax authorities by £1499 5s 6d. This amount has consequently been credited to the Profit and Loss Account for the past period. After allowing for this credit and making full provision for taxation, depreciation, and all usual charges, the for the year amounts to £3678 12s 3d, from which is to be deducted the debit balance in the Profit and Loss Appropriation Account amounting to £375 15s Id thus leaving the sum of £3302 17s 2d available for distribution. The directors recommend that a dividend of 6 per cent, per annum be paid, absorbing £3OOO, leaving a balance to be carried forward of £302 17s 2d. The report adds that social security tax has been paid by the company in New Zealand, and dividends are, therefore, not subject to this tax in the hands of shareholders. In a supplementary note the directors state that they' have entered into a forward contract for the sale of a total of 120 tons of rubber (July-December delivery) at a satisfactory price.