FINANCIAL NOTES
RHOKANA REPORT
THE full accounts of the Rhokana Corporation are an excellent example of what accounts should be. Shareholders are presented with full details of operating profits, a profit and loss account which sets out all the charges against gross profits, an appropriation account, and a very full review of the Cor- poration's interests. Already, the Corporation has announced the maintenance of its dividend at 624 per cent. and the report shows that earnings during the year ended June 30th were virtually unchanged. Operating profit was £2,558,486, against £2,166,911, and the net profit, before taxation, was rather higher, at £2,166,692, against £2,114,124, owing to the increase from £144,826 to £217,149 in the gross dividend received from she 32 per cent. interest in the Mufulira Mine.
As usual, the Corporation has ploughed a good deal back into the business. Capital expenditure amounted to £607,415 and a further £200,000 has gone to general reserve. After meeting a taxation charge of £247,794, against £94,258, a heavy increase which reflects the fact that the Corporation's losses have now run out, and covering the reserve allocation and dividend, the board is carrying forward roughly £24,000 more at £255,404. The Corporation's position is strong and the prospect seems promising in the light of recent develop- ments in the copper market. * *
MALAYALAM OUTLOOK
Students of the rubber position will examine carefully Mr. H. J. Welch's survey at the meeting of Malayalam Plantations. On balance he took a hopeful view and suggested that a de- pression of the severity which has just been experienced might not revisit the industry for some years to come. As American trade revives, he looks for a considerable improvement in world rubber absorption next year. While he foreshadowed a contraction in the company's profits this year, mainly becauss of a lower prospective revenue from the large tea interests, Mr. Welch saw no reason why the ro per cent. rate of dividend paid in each of the past two years should not be repeated.
F. W.
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