COMPANY BALANCE SHEETS.

Otago Witness, Issue 3594, 30 January 1923, Page 43

COMPANY BALANCE SHEETS.

THE NEW ZEALAND REFRIGERATING COMPANY (LTD.).

* Including bonus. Debenture Issue, £150,000. This company apparently believe® in imparting the minimum of information to it* shareholders. The headings in the balance sheet number five on the liabilities side, and three on the assets side. It is a little difficult to see on what principle this condensation is based. Cash in hand, for instance, showing £2 is considered worthy of a place for itself, whereas the bank account is not even mentioned, and is presumably included with sundry creditors or sundry debtors as tho case may be. Within the last year or two this method has been carried to an extreme. The int.ntion may be to try and arouse shareholders to take an interest in the accounts of the company, and so bring them to the annual general meeting to ask questions if they seek more knowledge. For a number, however, attendance must be quite impracticable. Since 1918-19, when the paid-up capital wa.3 doubled, this company lias had to face the slump and its effects. Its reserve® five years ago were slightly larger than the paidup capital. At the same time as the alteration in the capital was made, the reserves were cleared out. They had to be built up again and now stand at 20.96 per cent, with an upward movement. Secured debentures remain at £159,000 and claim £9OOO per annum in interest. These debentures were issued before the slump. The chief heading among the liabilities comprising sundry creditors, advances against shipments, and London balances has been reduced to one-half of laet year’s figure, but which of these may be responsible for the decrease is not disclosed. On the other side there is a correspondingly larger decrease on the asset for sundry debtors, investments, consignments unrealised, and stocks in works. Whether or not this is due to extensive writing down of stocks, the accounts do not make apparent, but the figure is lower than it has been for some years. The total figure for land, buildings, machinery, plant, etc., has continued to rise until it now shows the large figure of £938,351. The annual depreciation on property of such amount must be considerable, and although no mention is made of this provision it has doubtless received careful attention. The proportion of this group of assets to the total is as follows for the past six years:

The sale of the Pukeuri Works, which has taken place since October 31 last, will alter the figures. The prefit and loss account tells little. The profit shown is practically the same as last year, and was less than in preceding years. It. is stated to be arrived at after making provision for repairs, renewals, taxation, and sundry contingencies. Reserve account being augmented on this occasion by £IO,OOO, the shareholders consequently receive so much less in dividend than last year, when no such addition was made. Apart from the dividend and the resultant balance, the profit and loss accounts for 1920-21 and 1921-22 tear a remarkably close resemblance, the net return being 8 pe r cent, approximately as against 13J per cent anil 24-J per cent, for the two years preceding. With a diminishing rate of dividend, shareholders may desire fuller particulars, and tho opportunity will bo given them on the 7th proximo to prosecute inquiries.

Oct. 31. Paid-up capital. Rescrvt-s. F milts. Div. p.c. in 4.7 ... £258,130 £250,041 £53,040 *12 1018 ... aoo.coo 285,320 66,470 *i:ij 1919 ... 600,000 108,260 147.210 *12* 1020 ... 600,000 114,062 80.802 12.J 1921 ... 600,000 114.780 48,727 8 1022 ... 600,000 125,773 48,484 «1

I/Qinl Total Pr< jportiou. buildings. et-c. an sets. p.c. 1016-17 £651,605 £1,713.157 38.09 1017-18 800,211 1,914.944 41.78 1918-10 813,011 1.410,492 57.64 1919-20 852,674 1,386.908 61.48 1920 21 912,563 1,437,853 63.46 1931-22 938,351 1,176,653 79.74