The total profit of £.196.449.19 compares with a profit of 1.190,589.64 earned in 1939. This increase m profit is accounted for by an increase in the output. lower cost of production and an increase in the selling price with the result that the profit per lb. of rubber produced was 14.58 cts. per lb. in 1940 compared with 12.07 cts. per lb. in 1939.
Turning to the combined profit and loss account it will be seen that after debiting the agency fee of 1.9,000—- which is transferred to the Shanghai company. paying staff bonus over 1939, providing for loss on exchange and interest and reserving 1.39:555—for taxation there is a balance of £.138,929.89 which has been transferred to the balance sheet. This sum together with the balance brought forward makes a total balance in profit and loss account of £.150.357.34. proposals for dealing with which are given in the report.
Text read from the printed page and cleaned; old type leaves the occasional error.