Briefly the suggestion is that Messrs. Keylock and Pratt, are desirous of collaborating with this company, and have proposed the formation of a separate private limited company in which they and this company- would hold an equal number of shares. The shares in the proposed new company would be issued either against the value of plant, machinery and live stock to be supplied by either party, or against cash, Messrs. Keylock and Pratt will act as general managers of both this and the proposed new company, whilst one of their partners would act in the capacity of managing director of both companies, and the terms they require are reasonable.
The general scheme is that Messrs. Keylock and Pratt lease some of their land and the buildings thereon to the new company at a fair rent. They will sell to the new company live stock to the value of about $13,000, and they will be paid for these in shares, Our company will sell live stock to the value of about $21,000 and machinery to the value of about $5,000, in all $26,000, to the new company, and these also wil be paid in shares. Any further cash required for live stock bought from abroad or for additional machinery or for working capital will be subscribed half by Keylock and Pratt and half by this company, so that at all times Keylock and Pratt and ourselves will have a half interest in the new company.
Your directors consider that this arrangement will be distinctly to the advantage of your company and will hasten the time at which your cor moderately satisfactory position, since "Financially, the ce
on December 31, 1937, the cash assets exceeded the liquid liabilities $88,135.64," said Mr. A. J. Welch. chairman, at the annual meeting of shareholders of the Semambu Rubber Estates, Ltd., held on Monday at 11.45 am, at 93 Canton Road.
Supporting Mr. Welch were Messrs. L. E. Canning and H. Kadoorie, while shares present and represented totalled 496,658 shares.
The chairman said:
The result of the working for the year was a profit of $113275.57 as compared with a profit of $42,218.56 last year.
This increased profit is partly due to the fact that the output, of rubber was 81,700 Ib, larger, but the higher price realised also: contributed to a material extent, Of the estate expenditure most items showed an increase owing to the higher wages that had to be paid, but the completion of the cleaning up caused the upkeep of the gardens to show a decrease of St. $5,887.74. The expenditure on superintendence was higher by St, $1,737.29 due to the larger salaries drawn by the manage: and clerks which in turn led to an increase in the company's contribution to the provident fund, Tapping expenses were St. $8,018.62 higher on account, of the larger output and the increased rate of pay, tut a saving of St. $181.93 was effected on manufacture whilst duty on the other hand was St. $1,846.81 higher.
Financially, the company is in a moderately satisfactory position since on December 31, 1937 the cash assets exceeded the liquid liabilities by $38,135.64 and the position is steadily improving with rubber selling at its present price.
Text read from the printed page and cleaned; old type leaves the occasional error.