Increase of Business by 20
Per Cent. Recorded The annual report of the International Dispensary Ca,, Lid. for the year ended December '31, 1936, has been Issued and shows that progress ras" been made in the company's tum-over. "The report, signed by. Mr. Hong Loong-bynin, director and Beneral manager, says~—With the effect of the preceding year's market depression still_going Strong, business in general showed no signs of improvement during the first halt of the year under review. Fortunately, the" currency reform placed finahee on a Mrmer founda-ion and stabilized foreign exchange. The autumn harvest being bountiful for the farming-districts, a new life sprang into being, strengthening the Purchasing power of the people. This resulted in the revival of business in all lines, The turnover of our company during the year has also shown some Progress. For the drug department, ur sales amounted to $3,027,178.93: for the soap department, our sales amounted to $4,088,122.35; the sales of cur glycerine department amounted $420,150.89; the sales of our branches amounted to $4,101,901.03, making a grand (oral of $11/645,410.80. Compared with the preceding year, the increase of business was over 26 er cent.
In accordance with the principles of accounting and acting under our auditor's suggestion, beginning from the present year, "we have incor Porated. in our report the. balance sheets and the profit and loss sate ments "of our' local" and outport Regarding the valuation of sock, in former" years this was #8316300 always done by making some. deduc-
Bictonaco Tanaris 10 the present Income tax law, the ion fromthe" cost. But, according valuation of stock for business firms can be calculated only on the basis fof the original cost, any arbitrary Aiscount oF allowance being not per~ mitted. We have, therefore, placed on reserve all the allowance which should have been deducted from the value of stock. Other changes to be noted are the division into separate Hems of land and building and the revaluation of machinery, furniture and fittings, these being necessitated iso by the present income tax law. All this is clearly indicated in the summary of assets, With the company's steady expansion from. to year, such Items as propaganda expenses begin to increase, The completion of our new Dullding in particular entails considerable expenditure in equipment and other payments. After deduet-Ing operating expenses and bad accounts and the special reserve, we realized a net profit of $250,505.63 which was comparable to the net Profit of the preceding year.
Purthermore, to keep pace with our business expansion, and to facilitate future development, we have found it expedient to utilize' the reserve funds Accumulated in the past years. At a meeting convened in December, 1936, we have decided to draw out from ihe various reserve funds a sum of $1,300,000.00 te be converted into capital." This increases our original capital of $1,500,- '000 to $2,800,000. "Application for reistration of this increased capital has been forwarded to the authorities concerned,
Text read from the printed page and cleaned; old type leaves the occasional error.