I will, therefore, at this meeting confine myself to dealing with the accounts before you. You will note that the expenses of your company, have been reduced. toa. relatively small figure. The total for general charges and the fees of 'Messrs. Turner, Sturrock & Brown, your secretaries, together with auditors' fees and directors' fees, amount now to arnly just over $27,000, an inconsiderable sum in relation to the pald-up capital of your company, which Is over $7,250,000, and which holds and manages investments valued, even at current depreciated quotations, at] nearly $6,000,000. Tu this connection will be'seon from the accounts that an appropriation of $327.87447 has been made from reserve for the purpose of writing down investments, the value of which is considered doubtful, to nominal figures. This Teaves a' balance in reserve of $572, 12538. "As T have stated, bank indebtedness has been reduced to a relatively small amount, and it is probable that, before the end of the current financial year, the amount. will be stil further substantially reduced, Tt will be noted that the larger part of the indebtedness, viz, £30,000, in sterling. The conversion from dollars to sterling was done to save! the difference in interest between 8 er cent. and 5 per cent, and your Gireclors felt justified in making this! conversion in view of the fact that they hold sterling investments exceed-Ing this figure in value, may mention, that reduction in bank indebtedness has been effected without in any single case disposing of any investments ata loss." The} company has always been able to make substantial profits vy dealing of the most dificult years in. Shang. hal's history—our financial year which ended on March 31 last—we were able to. make a profit of $30,813.73 on sales of investments actually purchased dur This more than suffice stantial margin, to pay the whole of the expenses of your company during the year.
From the report which accompanies] the statement of accounts, you will seo it is stated that the anileipation of your directors expressed last year Fogarding the company's subsidiary, the Commercial Investment Ca, Ltd. has. been realized. All its capital losses have been regained and a dividend of & per cent, on the capital of '$,258,141.25 has been received, while additional substantial sums have been ut to reserve and carried forward. Tu the remark' to. our balance sheet which is included to comply with the requirements of the Companies Ordinances of 1632, 1t will be noted that certain directors of this} subsidiary company have received remuneration to the extent of $0351 from the subsidiary company. "As I am not one of the directors of the subsidiary, company, I have no dif dence in stating that those fees have been well earned. 'The control of our subsidiary company Involves a great deal of time and attention, frequent meetings and consultations' and. the results achieved shew how valuable! their work has been, No questions being asked, the fol-towing resolutions were put to the sented, be adopted."—Broposed by hattman and' seconded by Br, Chan Bing-him, "That the amount standing to the credit of profit and loss account be: dealt with as recommended by the! directors in. their report."—Proposed by Mr, Li Ming and seconded by Mr.
Text read from the printed page and cleaned; old type leaves the occasional error.