PROVISION FOR DEPRECIATION.
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Not only so, but it must be pointed out that before arriving at the profit mentioned no less a sum than £2,256,900 is charged by constituent companies in respect of maintenance expenditure and depreciation of wasting assets, and the report states that, as before, the profits contain nothing of an excel:, tional nature or by way of profits on sales of investments. The Central Obsolescence Fund, which in the last balance- sheet stood at £5,662,000, has been increased by £1,000,000 from profits and a further £1,000,000 from the Capital Reserve. From this total £3,662,404 has been written off shares and debentures and advances to subsidiaries and land, buildings, &c., thus leaving the fund at £4,000,000 in the latest balance-sheet. The balance-sheet itself continues to be a liquid one, Cash and British Government Securities at the end of last year standing at over £7,000,000, being all increase of £2,850,000 compared with the previous year.
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