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Corporation's liability for a proportion of the premiums on mortgage securities in terms of the legislation which became effective in December, .1941. The result of the year's operations, a net profit of £288,569, is considered satisfactory in the circumstances. 12. Staff. —Although many of our staff are now on military duties, essential work has been well maintained, and our thanks are due to permanent officers and temporary clerks who have made this possible. It is with regret that we record the death on the 25th June, 1941, of our esteemed colleague, Mr. G. A. Lewin, C.M.G., who had been a member of the .Board since the establishment of the Corporation in 1935. A. D. Park, Chairman of Directors. T. N. Smallwood, Deputy Chairman of Directors. B. C. Ashwin 1 lv n D D. Barnes J Revenue Accounts foe Year ended 31st March, 1942. Interest Account. Dr. £ Or. £ £ Interest on stock and debentures .. .. .. 1,561,045 Interest on mortgages, current accounts, Interest on State's portion of Gejieral Reserve .. 106,310 and local-body securities .. .. 2,310,530 Gross profit transferred to Profit and Loss Account .. 614,736 Less transferred to Genera! Reserve .. 35,980 2,274,550 Interest on temporary investments .. .. 7,541 £2,282,091 £2,282,091 Profit and Loss Account. Dr. £ Gr. £ £ Management expenses .. .. .. .. 241,419 Gross profit transferred from Interest Account .. 614,736 War damage insurance .. .. .. .. 42,886 Rentals: Properties acquired .. .. 7,779 Administration of rehabilitation advances from War Less miscellaneous expenses thereon .. 2,751 Expenses Account .. .. .. .. 1,614 5,028 Reserve for losses .. .. .. .. 50,281 Sundries .. .. .. .. .. 5 Net profit transferred to Appropriation Account .. 283,569 £619,769 . £619,769 Profit and Loss Appropriation Account. Dr. £ Or, £ Reserve for taxes .. .. .. .. 145,000 Net profit transferred from Profit and Loss Account .. 283,569 Balance, profits payable to Treasury.. .. .. 138,569 £283,569 £283,569 Balance-sheet as at 31st March, 1942. Liabilities. £ £ Assets. £ Authorized capital .. .. .. .. 1,000,000 Mortgages and accrued interest .. .. .. 48,115,511 Stock and debentures .. .. 46,115,730 Securities in course of realization .. .. 442,192 Accrued interest .. .. .. 247,633 Advances on Current Account and accrued interest 380,893 -— 46,303,363 Government and local-body securities and accrued Contingent liability to the Crown .. .. 4,430,178 interest .. .. .. .. .. 5,840,896 Reserves- — Fixed assets, at cost, less provision for depreciation, General Reserve .. .. ... 3,729,709 office furniture, equipment, and motor-vehicles .. 30,005 Reserves for losses .. .. 200,000 Current assets — £ Investment Fluctuation Reserve .. 120,000 Sundry debtors .. .. .. 38,950 Reserve for taxes .. .. .. 159,483 Temporary investments, including ac4,209,192 crued interest .. .. ..1,202,490 Sundry creditors . . .. .. . . 55,629 Lodgments in transit, ca-,h in bank and Liability to the Crown — on hand .. .. . . 262,854 Surplus for year .. .. .. 138,569 1,504,294 Amount payable to Treasury in reduction of contingent liability .. 10,550 Interest payable on State's contribution , to General Reserve .. .. 106,310 255,429 £56,313,791 £56,313,791 R. Robertson, Chief Accountant. Directors. In accordance with the'provisions of the State Advances Corporation Act, 1936, we report that we have obtained all the information and explanations we have required in respect of the accounts of the Corporation examined by us, and in respect of the above Balance-sheet, which in our opinion is properly drawn up so as to exhibit a true and correct view of the state of the Corporation's affairs according to the best of our information and the explanations given to us, and as shown by the books of the Corporation. R. C. Burgess, Public Accountant\ . r , G. D. Stewart, Public Accountant/ Au -° rs ' Wellington, N.Z., 12th June, 1942.

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