$160,000 Loss Shown by Accounts The annual meeting of the International Investment Trust Ca. of China, Ltd, was held in the board room of Sassoon House yesterd: Mr, E, A. MacEwan was in the chair, and other directors present were Messrs. Singloh Hsu, P. W, Massey, W. R. McBain, Tsuyee Pei and M. Speelman. 92,566 shares were represented by the attendance, The chairman reminded the meeting of the fact that there would be no chairman's speech. The report previously presented to shareholders reads as follows:
The directors regret that the accounts for the year ended March 31, 1637, show a loss of $161,170.06. After deducting from this the amount of $73,350.61 brought forward from the previous year's accounts there is a balance at the debit of profit and loss account of $87,819.45, which the Directors recommend should be carried forward to next year's accounts, The sum of $61,116.34 has been transferred from general reserve to the credit of profit and loss account to cover the net losses on the re: isation of certain investments. These investments ¢onsisted of shares which will probably not produce dividends for many years to come and also securities which did not produce a large enough return to cover interest on overdrafts. The directors consider that, as the reserve vas built up from profits made on investments, any losses incurred should be debited to the reserve.
The income from rents, interest and dividends during the year under review amounted to $111,949.47. A3 ihere has been a substantial revival recently in industrial undertakings this should be reflected by an increase in revenue in the next year's accounts, It must be pointed out that such increased revenue is, as a rule, only available for inclusion in the accounts of Investment Trust Companies 12 months after the dividends are received by the shareholders of the companies concerned, and for this reason the yield on the shares of companies such as this one usually lags behind those of industrial concerns.
The directors are glad to report that the expenses in connection with the management of the company have again been reduced, the reduction for the past year being over $2,000.00.
Investments are valued in the accounts at cost or under, vin, $10,275,- 089.14. The value on March 31, 1937, og per stock exchange nominal or market prices was $6,712,570.59, showing a depreciation in book values of $3,562,518.55, against which the company has a reserve of $323,- 367.64, In this connection it is mentioned that the depreciation in value of the company's holdings in real estate companies alone amounts to $1,636,930.00.
Loans and Bank Overdrafts stand at $961,377.20 as against the corresponding figure of $581,773.45 for last year. The increase of $379,603.75 is accounted for by the increase shown under the heading "Investments" on the assets side of the balance sheet and the loss for the year indicated above, During the year ünder review Mr. A. K. MacEwan retired and Mr. G E. Marden was appointed in his place. This appointment requires your confirmation, Messrs, Li Ming, W. R. McBain and C. J, Meager retire in accordance "ith the Articles of Association, but being eligible offer themselves for re-election, Messrs. Thomson & Ca. retire, but offer themselves for re-election.
The resolutions, relating to the adoption of the directors' report and statement of accounts, the distribution of the profit and loss account, the re-election of directors and the re-election of auditors were passed unanimously.
Text read from the printed page and cleaned; old type leaves the occasional error.