The third annual report of the directors of the Shanghai Loan Investment Ca., Ld., for presentation to the shareholders' meeting on January 26, sets forth the following The profit and loss account, including the balance of Ts. 82,644.74 brought forward from last year and], after deducting general agents' commission, directors' and auditors' fees, shows a credit balance of Tls. 174,422.67. Investments and debentures appear in the balance sheet at cost, viz., Sh. Tls. 1,175,596.70. The nominal market value of same at date of closing the accounts was approximately Tls. 855,000.
The further shrinkage in the investments is due almost entirely to the low price ruling for rubber at present and the consequent drop in the values of rubber shares, most of which were taken over on the formation of the company from the old loan and investment account the Langkat Company. The dealings in other shares have been fairly successful. The directors regret they cannot recommend the payment of a dividend as it is their opinion that the above-mentioned shrinkage should be provided for far as possible. Last. year Tis. reduced by} 75,000 was set aside for a general reserve and this they consider need not be added to. It is therefore proposed to deal with the surplus at credit of profit and loss account as follows Tis. To add to reserve against fluctuations of investments (at present standing at Tis.
50,000) 150,000.60 To carry forward 24,422.07
Ts. 174,422.07
The following statement shows the returns on capital invested Investments and Debentures, Dividends received on same per Sh, Tis. Sh. Tis. cent.
Cost of shares held throughout the entire fin.
ancial year—869,966.07 18,909.81 =2.17 Cost of shares bought during the year 305,630,63 8,185.18
Cost of shares held 31/12/21—1,175,596.70 27,094.99
Cost of shares sold during the year 409,179.16 16,800.00
Total dividends received during the year 43,894.99
Of: investments held throughout, the year there was no return on Tls. 512,503.34 and the dividends of Tls. 18,909.81 shown above were thus earned on investments of Tls. 357,462.73 making a return of 5.29 per cent.
Interest received on loans clu the year amounted to Tls. 45,05—being an average return of 9.45 per cent. per annum on money loaned—from which, has. to ye deducted Tls. 8, 44—interest paid on money borrowed—leaving a net balance at credit of this account of Tls. 36,663.61 as per balance sheet. This result is somewhat disappointing but, considering the difficult situation that Shanghai is passing through, it is not altogether unsatisfactory.
Tls. 200,009 has been lent to the Shanghai Sumatra Tobacco Ca., d., the amount being secured by a mortgage on the estates and property of the said company.
Text read from the printed page and cleaned; old type leaves the occasional error.