If you will Kindly turn to the balance sheet you will notice that the years working shows a loss of $18.- 12728 after providing for depreciation of furniture, fixtures, fittings and plant, amortization of buildings and lend in Shanghaj and Tientsin. This deducted from the $37,504.32 brought forward from last year, leaving/a credit balance of $19,377.04, h has been carried forward to nxt year. Much as your directors naturally regret having to report a loss on the year's working. they feel that under the abnormal circumstances prevailing during the latter half of the Company's financial year, that you will consider the result of the year's working as satis-tory You will notice that the company's overdraft stands at $384.108.62 as gainst $403,047.17 at February- 28, 937, notwithstanding the extra apitol needed and invested for thw Gevelopment of the new Furniture Section, and I would mention that special efforts are being made to further reduce the amount of the Company's overdraft, and that these efforts are meeting with success. Stock in hand and ju transit stands at $91323198 as against $927,042.77 at February 28, 199d- which demon-strafes that care is being taken in ihe purchase of new goods to ensure always having a full and complete stock of new merchandise in all de~ partments, without allowing the accumulation of old stocks on tht shelves, I am pleased to be able to assure you: that the value of your stock-in-hand and in transit standing at $019,231.98 is an absolutely fair and equitable valuation of the stock.. All stock having been taken at landed Cost price, fashion goods and shop-soiled goods, etc, being depreciated in value before being taken into stock. Today of course the value of the stock-in-hand has very con siderably appreciated and is worth from 10 to 15 per cent. more than it actually stands at on our books on account of the higher cost of landing goods owing to the fluctuation of exchange on quality imported merchandise, which is in all cases bought from the actual manufacturers, thereby eliminating all jobbers and miádlemen's profits.
This comparatively new furniture section of our business was doing 2 quite satisfactory turnover until hostilities commenced, in fact at the end of July, furniture to the value of $66,550.00 had been sold. but as I stated before, this section of our business was completely isolated from the time hostilities broke out until January 23, which of course made this new section of our business show a loss on the year's working.
Text read from the printed page and cleaned; old type leaves the occasional error.