8.—6.

Balance-sheet as at 31st March, 1936. Liabilities. A QQof<} ♦Share capital— £ s. d. £ s. d. £ B d " 1 '750'000 0 0 Mortgages and accrued interest .. .. 39,062,498 '5 10 ea .. .. 750,000 0 0 Advances on Current Account and accrued ct&dinlLance " 'H?'S22 1» « Government and ' local-body securities and 13,748 ® " balls paid in advance .. 171,644 12 6 _ accrued interest .. .. ..3 038 227 5 4 Stock and debentures and ac- 4M ' 644 12 6 1688 provMoll for depre - "tfohuih, «' " 30,600,004 13 g Office furniture and motor-vehicles .. 30,35117 8 Contingent liability to the Current assets— £ s d Rpse?vßs—' " " " 8,927,521 11 8 Sundry debtors .. .. 5,182 18 4 General Reserve 9 ~, , s K Fixed deposits with trading El™rvesfo? lolsês on invest t , bani ? a - nd accnled interest 954,187 17 0 man/. invest; Lodgments m transit and cash Investment Fluctuation J < ooooo in bank and on hand .. 75,102 4 Reserve .. .. 10,000 0 0 _ Realization Suspense Account—Losses chargeable ' Staff Superannuation Eund .. .. '25 392 18 11 t0 Contingcnt Llabilit y Account when defined 59,697 13 8 Sundry creditors .. .. .. 122'136 6 4 Liability to the Crown— Balance of net income .. 217,996 611 Less interim payment .. 75,000 0 0 142,996 6 11 Balance of interest on contribution to General Reserve 6,821 2 0 149,817 8 11 £43,217,990 8 2 £43,217,990 8 2 * la terms of State Advances Corporation Act, 1936, the whole of share capital was Required by the New Zealand Government, and is now fully paid up. General Reserve Fund.. At the commencement of the Corporation's lending-operations in September, 1935, this Fund stood at £2,750,010, increased to £2,956,472 as above. At the 27th November, 1936, the Fund had increased to £3,196,594. The whole of this sum is invested in sound local-body securities in the Dominion, Business transacted. Uptojlst December, 1936, the aggregate amount of applications received by the Corporation was £13,258,333, made up of— Mnmhpr -P Residential 6;238 ' 4,709,550 iarms •• •• •• •• •• 4,272 8,548,783 10,510 13,258,333 Arising from these applications loans have been granted as p • j lnr ! e 'i Number. £ Residential 3,333 2,225,668 * arms •• •• •• •• .. 1,628 3,870,270 4,961 6,095,938 Applications still under action total 1,503, amounting to £1,564,642, and the number declined or postponed for future consideration is 4,046, representing a total sum of £5,597,753. Profits. Section 41 of the State Advances Corporation Act, 1936, provides as follows : " After such provision as the Minister of Finance thinks proper has been made for the depreciation of securities or other assets and for such other matters as in his opinion are necessary for the efficient conduct of the business of the Corporation, the surplus for each financial year shall be paid into the Public Account, unless the Minister, m his discretion, authorizes the Board to credit it, in whole or in part, to the General Reserve Fund of the Corporation." Reference to the Profit and Loss Account figures furnished earlier in this report shows that, after meeting the interest charges on Stock and Debentures and paying working-expenses, the net profit available at the close of the last financial year was approximately £342,000. After providing reserves tor income-tax and investment fluctuation the balance is payable to the Crown on account of the contingent liability of £8,927,000, which ranks second to the claims of the holders of Stock and Debentures issued by the Corporation. Wellington,

By Authority: K. V. Paul, Government Printer, Wellington.—1937.

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