Tt must be obvious from what I save just said that our original eaptal is quite inadequate to our pre-der sent needs and it is only because of the assistance of our bankers hitherto that we have been able to carry on at all. This assistance, however, entails @ heavy annual charge for interest, and your Board after lengthy jand serious consideration of the question from all aspects have come to the conclusion that successful working in the future makes this Proposed increase in our capital imtrative, With more funds we should have free hand to instal up-to-date machinery and to extend into more, profitable branches of the textile industry than mere spinning and there is ample room on our leased property for developments in this direction, but we ean-Jnot undertake these without adequate funds.
Our overdraft to-day with the Hongkong & Shanghai Bank stands Tls. 1,078,008.34, and in accord: ance with your auditors' report this overdraft "is secured by a first miortagage debenture on all the company's undertaking and property.
Your Board in their desire to lay' matters clearly before the shai holders feel satisfied that a time has arrived in the affairs of the company. when more capital is required and hereby propose this resolution which they consider best for the future terests of the company. AS dividual shareholders, however, they reserve their right to' vote in accord~ ance with their own inclinations.
In the opinion of your Board the alternative to the raising of fresh Jecpital as proposed is that the con pany should go into voluntary Tiquidation.
With this explanation, gentlemen, I leave the resolution, which T now Propose, in your hands, The result of the year's working, shown in the accounts, is a loss Ts, 27 wided the debit standing:
wid lose account at the 1923 wf THs, 86,056,7 showing an Amount standing at the debit of this account at the end of 1924 of The, BORK} and T much regret way hho reserves to meet this fire, Owing to our tack of cubital, we have had to pay our bankers no less than Ths, 71,712.70 for interest on our current account. during the year, practically speaking 9 per cent, on owe capital. In these regrettable circumstances your Board are unable to depreciate either your buildings or plant, all your available reserves having been already utilized to meet previous years losses. shares be offered at par to the! shareholders in the company in proportion to the existing shaves held by them respective Ly, and upon the footing that the full amount of each share taken up shall be paid to the company on acceptance of the offer, and that such offer be made by notice specifying the number of shares to which ench shareholder the offer accepted by' payment will be deemed to be declined, and that the Directors be empowered to dispose of the shares nog taken in response to such offer as they consider expedient in the interests of the company.
The Chairman said: Gentlemen, I now proceed to deal as briefly as
Text read from the printed page and cleaned; old type leaves the occasional error.