axp Reserve.
The suggestions made by the Auditors last year as embodied in their certificate have this year been carried out, and this has naturally had the effect of automatically closing the Improvements and Renewals Account. It was mentioned in the Chairman's remarks at the last meeting that the disappearance of this account was regretted by the Directors. The account, as has been explained on more than one occasion, serves a very useful purpose. You will remember that it is to this account that we debit the cost of such improvements and_ renewals, which though not of a direct rent earning character have tke effect of reducing the expenditure on future repairs. The cost of such improvements may be very necessary for the welfare of our property may well be a heavy charge on any one year's Working Account, but by debiting the cost to Improvements and Renewals the charge is spread over a number of years.
After very careful consideration and with the full approval of our 'Auditors your Directors have decided to reopen this account, and for this purpose we have taken Tls. 144,065.79 from Reserve; to this amount will be added' from time to time such sums as are available and as may appear necessary from the balance of Proft and Loss Account, and we shall continue to debit the account the cost of improvements and renewals.
Our Reserve Fund now stands at Tls. 1,000,000 as against Tls. 1,523,045.72 shown in. the accounts last year. T however, is no real reduction in our reserves as we have opened a Land Suspense Account with an amount of Tis.
Text read from the printed page and cleaned; old type leaves the occasional error.