H. Morrison as manager of Gunong Rabat and Canning when the latter left the services of the company for war service and Mr. T. A, Kennard still remains in charge of of Sikamat Estate.
The accounts, I think, need very} little comment. The usual depreciation has been allowed and the basis of the. apportionment of expenditure in making up the accounts has been 87} per cent. to revenue and 12} per cent. to development account. You will probably notice a slight change in the form of presenting our accounts this year. Hitherto it has been the custom to print our accounts in taels which made it somewhat difficult to form an idea of our actual penditure in the Straits. To overcome this difficulty and order that shareholders may have some idea of the extent to which we are affected by exchange, the particulars of capital expenditure and the profit and loss account have and will in future be shown in Straits dollars faced with the equivalent amount in taels.
Our earnings this year have been severely affected by the heavy rise in silver. Last year we had an average exchange of Tls. 54}=S. $100 while we have been working at an average of Tls. 453=S.$100 for the year under review.
Rubber in stock and in transit has been calculated at Tls. 45= $100. The amount of Ts. 1,034.45 representing last year's stock needs a little explanation. I might say that when closing the accounts for the year, the rubber in stock and in transit and which is unsold, is incorporated in the accounts at the rate of exchange prevailing on the last day of the financial year, that is June 30. Now this stock being unsold on that date naturally comes into the following year's sales and the total sales for that year are then taken at the average exchange. In 1918, the rate taken for the rubber stock was 49§ whereas the rubber was disposed of during the year under review at an average rate of 453, so that the amount the output, our total costs show a of Tls. 1,034.45 is a loss due to' the unfavourable exchange at which last year's stock was disposed of. This item is, of course, merely a book adjustment.
The average selling price of our crop for the year was Is. 4.84d, against 1s. 834d. for the previous period and the total amount of sales realized Tls. 115,938.58, being Tls. 129,804.84 less than that for the 15 months period to June 30, 1918.
After writing off the sum of Tls. 36,225.47, we carried forward from last year the sum of Ts, 34,445.62, which added to this year's profit makes a total of Tls, 46,344.93 standing to the credit of profit and loss account. In dealing with this amount, your directors recommend that the amount of Tis, 18,448.68 which is not represented by liquid assets be written off asset account and the balance of Tls. 97,896.25 be carried forward to next year's accounts. The result of the year's working is certainly disappointing but-it is hardly necessary for mo to point out that it is due to lower selling prices and higher silver. The latter condition still remains but I am pleased to say that after a lengthy period of depressed prices, rubber is now commanding better values, the rise which commenced in the autumn having continued steadily up to the present with a good demand. Your directors felt that there was no need to clos> any forward contracts and the company is consequently reaping the full benefit of higher prices, Before concluding, I would like to take this opportunity of recording the directors' appreciation of the work done -by the estate managers and the Penang agents as well as the secretaries and general managers.
There being no questions the following resolutions were adopted—That the Report and Accounts for the year ended June 30, 1919 as printed and circulated be passed: proposed by Mr. T. E. Trueman, seconded by Mr. W. McMurray That the balance standing at edit of profit and loss account viz. Tls. 46,224.93 be disposed of as follows To write off:—Tis.
Development account 11,423.74 Buildings and furniture 4,579,50° Bullocks and carts 213.73
Plant and machinery 1,184.14 Wells and water supply 200.82 Motor vehicles 846.75.|To carry forward to next year's accounts 27,896.25
Tls. 46,344.93
Proposed by Mr. T. E. Trueman, seconded by Mr. W. McMurray.
That Mr. E. Jenner Hogg be re-elected a director of the company, proposed by Mr. E. A. Measor, seconded by Mr. J. Leon.
That Mr. T. E. Truewan be re-elected a director of the company; proposed by Mr. W. McMurray, seconded by Mr. E. A. Measor.
Text read from the printed page and cleaned; old type leaves the occasional error.