H.—278.

A copy of the last audited balance-sheet of the company, prepared as at 31st December, 1933, is attached as Exhibit No. 5. The figures in the books as at 30th June, 1934, after adjustment in respect of the purchase of the four additional sections referred to above, but before adjustment of some accruing expenses not entered in the books, are set out in balance-sheet form in Exhibit No. 6. The freehold property was bought by the company for £11,500 and now stands on the books (including subdivisional costs) at £11,870 Is. lOd. The Government valuation is—Capital value, £1,860 ; unimproved value, £710. 12. RECOMMENDATION. The possibility of disposal of the property at a figure in any way approximating to the book value seems to be very remote, and with the greater part of the capital already lost, it is obvious that the company cannot perform its obligation to either its bondholders or debenture-holders. It is therefore recommended that the company be wound up. A. M. Seaman, Inspector. Auckland, 28th January, 1935. Exhibit No. 1. [Not printed.] Exhibit No. 2. [Not printed,.] Exhibit No. 3. [Not printed.] Exhibit No. 4. [Not printed.] EXHIBIT No. 5. AUCKLAND PROVINCIAL TOWN PROPERTIES, LTD. Balance-sheet as at 31st December, 1933. Capital— £ s - d - £ »• d - Authorized— £ s. d. Property .. .. .. 11,316 4 0 7,000 shares of £1 each .. .. .. 7,000 0 0 Plus cost of subdivision .. 434 11 4 Issued — £ s- d. == 11,750 15 4 7,000 shares of £1 each .. 7,000 0 0 Property bond instalments .. .. .. 3,308 10 0 Less Uncalled .. .. 1,000 0 0 Debenture discount .. .. .. .. 100 0 0 Debenture expenses .. .. .. .. 155 9 3 6,000 0 0 Deposit with trustees for debenture-holders .. 120 0 0 Less Calls in arrear .. 25 0 0 Sundry debtors .. .. .. .. 220 0 0 — 5,975 0 0 Office furniture .. .. .. .. 23 12 6 7J-per-cent. debentures .. ■■ 6,000 0 0 Petty cash .. .. 10 0 Property bonds .. .. 7,450 0 0 Profit and Loss Appropriation AcLess Uncalled property bond count — capital .. 79 10 0 Balance at debit, 31st December, £ s. d. • 7,370 10 0 1932 .. .. .. 4,480 7 0 Loans .. .. .. .. 840 3 2 Add Loss for year to date .. 465 2 10 Sundry creditors .. .. .. .. 28 10 0 4,945 910 Property Bond Premium Reserve .. .. 377 10 0 Suspense—Amounts paid upon forfeited property bonds .. .. .. •• 90 0 0 Bank overdraft .. .. • • • • 3 3 9 £20,684 16 11 £20,684 16 11 In accordance with the Companies Act, 1933, I certify that all my requirements as auditor have been complied with, and report to the shareholders that I have obtained all the information and explanations I have required, and that, in my opinion, the above balance-sheet is properly drawn up so as to exhibit a true and correct view of the company's afiairs according to the best of my information and the explanations given to me and as shown by the books of the company. Auckland, N.Z., 16th May, 1934. (Signed) S. Leah, A.C.A. (Eng.), A.P.A. N.Z.

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