HOME BUILDERS, LTD.

Taranaki Daily News, 15 November 1916, Page 6

HOME BUILDERS, LTD.

KEW DIRECTORS' REPORT AN iit'ROVED rOSITIOx lhe second ann\tsl report Sad balancesheet of the Now Zealand Home Builders, Limited, for the year ended September 30, lfllß, lias been circulated. It will be presented to the annual general meeting vf shareholders, to be held at the Chamber ot Commerce Rooms on November 22 The report states that the new board of directors, elected in July last., have effected several changes. It was decided to cease building operation? for the time being, and also to reduce the stocks of timber and stores and generally endeavor to improve the financial position. Satisfactory financial arrangements had been made and the position of the company had been greatly improved. Incorporated in the report are extracts from reports made by the auditor and secretary, which the directors have confirmed. These extracts state that steclcs havi. been carefully taken, and that when incorporated into tho various yard accounts they show losses aggregating £10,004. "This,' - says tho reports, "is attributable to t'u depreciations in values, wages, rents, and cartage?, connected with the yards, general expenses which cannot be directly chargeable to other accounts. The extracts from the auditor's/ and secretary's reports also state:—'"Special attention is directed to the amount paid by the company for commission to tlia Security Underwriters, Ltd., £21,490 17? lOd, which was included in the previous year's balance-sheet as an uss Owing to the unrealisable nature of t' 's asset, we lave deemed it prudent tc. eliminate so great an amount by the transfer of profits made on the forfeiture of shares, £471 7s lid, premiums received for shares, £3202 lfls, and £13,000 standing to the credit of reserve account. The. balance left, £4750 13s lid, csn be written off in subsequent years. The income for the company for the ensuing year, exclusive of any possible profit from bu'lding operations, or on sale of stock?, is estimated at £3500, and the directors behove that with prudent management this will, under the present reorganised staff, be more than sufficient to meet the necessary expenses of the company. Although the profit and loss account shows expenses aggreg'ting £2.1,202 10s 2d, at least £17,3 0 will not, on account of their nat i\ recur, and with the gradual change in the nature of our business, other expenses will be con siderablv reduced. The creditors on bills payable since date of balance have been paid in full, and those on open account have been also reduced. . . . The company enjoys first-rate securities for houses built, the margin in its favor being very good. The unpaid balances now amount to £7-0,707 7s 2d, and arc being gradually reduced, thereby creating a greater margin as security. The other asfcts have been written down, and now l'epiesent their realisable value, excepting land and buildings, which have considerably appreciated. The balances of preliminary expenses and commission accounts have been reduced, and will be fuitl'-er written off in subsequent years." At the annual meeting a number o.' special resolutions will.be submitted, on* of which is that tin capital of the com"any be reduced from £250,000 to by the cancellation of 125,000 unissued shares. A scheme, for the recommencement of building operations alto will be submitted