REPORT OF DIRECTORS.

Otautau Standard and Wallace County Chronicle, Volume XXVIII, Issue 1395, 18 October 1932, Page 4

REPORT OF DIRECTORS.

The eighteenth annual -report "of tht Permanent' lnvestment' and Loan As sociation of Southland, to be presented at the annual general-meeting on October 27, shows that during- the year ,£28,466. was advanced, making a total advanced of £154,704. The profit and loss account shows t in round figures, • a credit of .£5,113, which jt is proposed to apportion as follows: Dividend 6§ per cent, on Capital "A" -Shares, £2,722; to credit - holders pf "B" and "C" shares., 6J per ceni, m 7. '—,_.., ' r The report continues f The General Account now stands at £15,---600, m addition, to which. we will tlien have a Security "Depreciation Reserve Account of, £1,000. During th.c current , year the "National Expenditure Adjustment Act"~ i came into operation, and this has had -the effect 'of considerably reducing the amount of interest received. The effect of .this recent legislation accounts for the lesser profit shown- this year m, comparison' with former years. . In our present balance sheet only six. months at .the reduced rate of interest operated, "but next year the full twelve months will apply and .continue tijl ,31st March, 1936, on all advances current as at 31st" March, 1932. Notwithstanding .this, m every case .the -Directors are honouring current obligaitons to depositors. The Special Depreciation Reserve has been reduced t o £365 by writing off .£723, and it is proposed to reinstate thisj iup to £1,000 by transfer of' £634 from Profit and Lobs Account. Although provision has beeri : made for . known losses, the present depreciated .values of properties Smakes it necessary to t regain this reserve. As. pointed out m our , previous report, shareholders can materially assist the prosperity of pur j. Association by placing money on, deposit, a? ta? regular -; flow of sums^ on deposit increases turnover and m producing -a- satisfactory, balance-sheet The- Directors ; have continued a conser^tiyev-'poUcy dur. ing the last year which ; will^no doubt meet with the" approval of . share-

holders. Reference to the balance sheet discios.es the fact that at :30th September last our Association had liquid funds amounting to £9,076. Two Directors must be elected m place of Messrs J. S. Baxter and R. A. Anderson, who retire, m accordance with the rules and again offer them' selves for re-election. v