Although not affecting the 1996 Balance Sheet, 1 think I can here properly deal with the changes in Joan capital that took place in January of his year. In July of last year we availed: ourselves of our right Under the terms of issue of giving. six months' notice of our' intention to redeem the £100,000 la sue of 64 er cent. sterling notes and in Jan-ary of this year offered for issue $2,000,000 5% per cent, debentures at ar, The response was very satisfactory, the Issue, being oversubscribes Out of the proceeds, the sterling notes were pald off. We have thus replaced a per cent. sterling obligation with per cent, obligation in local currency."
Turning mow to the exception 1 just mentioned, you will notice that transfer of "$282,199.35 "has been made from equalization of dividends reserve to staff" provident fund and the latter amount increased accord ingly.
Afler the uncertainties as regards exchange and currency of the past few years we judged the time opportune to go into the whole question of salaries and staff benefits. "A committee from among your directors was appointed to study the matter in Getail with a view to making recom: mendations which would relieve the company of all risk of exchange in connection with salaries and staff benefits and yet would not alter more than was unavoidable the then exis Ing conditions so far as the staff was. concerned. Recommendations were duly made and adopted and have now been put into force. While not proposing to deal with the matter in detail, the effect of the new conditions that salaries have been fixed in Yocal currency and will not vary with the sterling value of the dollar as formerly, that the company's lability respect of future pensions will be solely in local currency the option of employees of drawing pensions in Sterling-at a Axed rate of exchange having. been withdrawn and finally the sterling relief grant, under which employees on retirement were entitled to draw the amount standing to their credit in the staff provident fund with the addition of the grant, the amount of which is dependent on the then sterling value of the dollar, has been compounded and will nol payable inthe case of future retire ments,
Text read from the printed page and cleaned; old type leaves the occasional error.