COMPANY MEETING
ASSOCIATED AUTOMATIC MACHINE CORPORATION
TAXATION POSITION THE eleventh ordinary general meeting of the Associated Auto- matic Machine Corporation, Limited, was held on April 23rd at Winchester House, Old Broad Street, London, E.C.
Major R. D. K. Curling, M.C. (chairman and managing director), said: Gentlemen, the report and accounts having been in your bands for the usual period, I presume you will agree to have them taken as read. (Agreed.) If you will turn to the balance-sheet, I will deal with the changes which have taken place since March 31st, 1939. The first item on the assets side, "Investment in Subsidiary Company," represents the value of our share-holding in The British Automatic Company, Limited, and is increased by £428, which is the net cost of additional shares purchased during the year. We now hold 981 per cent, of the share capital of that company.
The next item, "Dividend from Subsidiary Company," repre- sents the dividend declared by The British Automatic Company Limited in respect of the year to December 31st, 1939. The annual general meeting of that company was not held this year until after March 31st, the date on which our financial year ends, and so the dividend was not paid until after the date of this balance-sheet.
On the liabilities side of the balance-sheet "Sundry Creditors " has increased by £5,810, and this is due almost entirely to an increase in taxation reserve, and as the explanation of this is to be found in the profit and loss account will you please turn to that account, where ybu will see that provision has been made for excess profits tax' amounting to £9,250, less income-tax recoverable, £3,704, a difference of £5,546, which is slightly less than the increase in" Sundry Creditors."
Although I am pleased to say that the net dividend received from our subsidiary company—L16,789—was over £1,000 more than last year, I regret to say that the net profit of £10,486 is down by £4,730, on account of the tax provision which I have referred to above. The balance of profit brought forward from 1939 is £1,925, making a total of £12,411. From this your directors have pleasure in recommending the payment of a divi- dend of 41 per cent., less income-tax, which will absorb L10,687, leaving £1,724 to be carried forward. The report and accounts were unanimously adopted.
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