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Note 3. Stockge 258 of 1097
Page 258 (a) General. Although physical stocktaking was not complete in every respect, such a wide field was covered that it has been possible to assess with reasonable accuracy the cost of stores consumed but not allocated, and general stores deficiencies at £216,926, which figure has been included under Development Expenditure on Schedule 1. The basis of valuation of the inventories for this purpose was cost, or if it was not possible to identify the cost due to lack of full documentation, an estimate of cost was made. Subject to (b), (c), (d), and (e) below, no financial provision was possible to cover loss of physical condition.
(b) Merchandise.-Stocks of merchandise held for re-sale have been valued at cost less £20,000 provided for loss of condition. This £20,000 has been added to the deficiency on trading of £30,381 and transferred to Development Expenditure.
(c) Fertiliser.—Fertiliser stocks held in East Africa have been reduced to 10 per cent. below cost to cover estimated wastage and Fertiliser stocks in Holland have been reduced by £30,000 to bring these to market value. This total write-off of £53,920 has been transferred to Development Expenditure.
(d) Empty Drums.-The stock of empty drums in use in East Africa has been valued at half cost and the amount written off has been transferred to Development Expenditure.
(e) Seed.-Groundnut seed held in stock at February 29 and sold sub- sequently has been valued at the sum realised.
Note 4. Debtors
A provision of £6,250 has been made in respect of Debts due from employees or ex-employees, which may not be recoverable. Other debtors are believed to be good.
Yours faithfully,
For UNITED AFRICA COMPANY (MANAGING AGENCY) LTD.,
(Signed)
G. W. Webster, Director.