The crop of rubber harvested during the year totals 518,500 Ib. and the sales, excluding serap rubber, amount io $55,355-1b., the average sale price being 24.14 Straits cents as compared with 31.96 cents during the previous year, This reduced selling price combined with the increase in the cost of production which, in turn, is partly attributable to the lower exportable quotas, has caused a reduction in profit from $170,939.84 last year to $97,465.30 this year. To this profit the carry forward from last year of $11,- 328.79 has to be added, making an amount available for distribution of $108,794.09. Out of this an interim dividend was paid on January 7 which absorbed $20,000, leaving $88,794.00 which the directors recommend be dealt with as suggested in their report.
In the report of the directors you will note it is stated that Messrs.
Lowe, Bingham & Matthews offer themselves for re-election as our auditors at an annual remuneration of Tls. 300 for Shanghai and the Straits. The balance sheet was in the hands of the printers before the application was received from the auditors and the discussions took place regarding the alteration in their fees which have now been agreed to in principle by your directors.
The auditors have requested that the Shanghai share of the fee be adjusted on the basis of their circular of the 1st instant to the managers of all local companies. It is proposed. therefore, to consider 60 per cent. of the former tael audit fee, to be the Straits share.of the fee and be paid in Straits Dollar at par with the tael. Of the 40 per cent Shanghai Share of the fee, half is to be paid in local currency and half in Sterling at 1/2% or the local dollar equivalent at the Hongkong & Shanghai bank's opening selling rate of the day. It is the considered opinion of the directors that the auditors are entitled to this adjustment in their fees and I trust you will approve of Resolution No. 4 which provides for the new scale of fees for the ensuing year, The Resolutions The following resolutions were passed unanimously Proposed by: Mr. W. Mellor, seconded by: Mr. E. E. Parsons "That the report and accounts for the year ended June 30, 1938, as presented, be accepted.
Proposed by: Mr. W. Mellor,
Text read from the printed page and cleaned; old type leaves the occasional error.