We recommend writing off bulld~ ings, plant, machinery and other fixed asseis the sum of $450,000—a liberal sum particularly when it is remem~ here that last year over $1,000,000 was fated or" this purpose rom the balance at credit of the Share premium recount. You will Hate that it is proposed to. transfer two small amounts to general reserve Sand colton lvetuaton funds respec: tively. This Is to round off the It is proposed to reimburse equalization of dividends reserve by $150,000, This will bring the reserve Up to $1,380,000, To modernization of machinery account and spot pairs and renewals reserve it is pro-00 ively. In regard to the osed 10 transfer $400,000 and $200,
former, 1 should like to emphasize once more the importance of bring-Ing our plant up to date, Much of our machinery is old, In regard 0 Special repairs and. renewals, some of our buildings are old and were considerably shaken by the hostilities, Last year "we repaired the more urgent and visible weaknesses. It is our policy to keep our building: plant' and machines in as good ord as possible, and it is for this pure pose that this reserve is maintained, $150,000 for Bonuses It is suggested that $150,000 be allocated to staff Bonuses and con tingencies account, which is applic able to both the Chinese and foreign members of our staff. In view of the very real dimeulties and discomforts our staff have experienced and are still experiencing in the Yangtszepoo area, 1 am sure you will agree with me that they deserve due consideration and 1 hope this allocation will meet with your approval. We have a very loyal staff, and the success of our Working Is largely due to them. 1 know you will join with congratulating them.
regard 10 the Chinese superannation fund, it is proposed to make an addition of $30,000. Under prevailing conditions your consulting committee consider it prudent again this year to carry forward the fairly large sum of $274,789.72 to the new 'Turning now to the Balance you will' see here reflected fne Values in terms of local dollars are all greater than this time last year, and you can easily realize the dificult ties 'a concern of this size has financing a big turnover. The working capital which was sufficient before the fall in exchange has to be stretched considerably today to fin-nee raw materials, stocks of man factured goods, ele, with a dollar worth only 8!
Text read from the printed page and cleaned; old type leaves the occasional error.