CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 131

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In spite of this it was included in Capital in Ex.D, both in

liabilities and in uncalled capital. Nothing had ever been

paid on these shares. I have here N.I.B.12 Ex. J application

forms for these shares, dates are all between July & September

1927, none of them have percentage filled in. In Norombec

1927 evidently these were regarded as doubtful.

Khong Hoi

Tin, according to footnote on f.49 Ex. L owed $550,000. Books

also show that 1,000 of his shares to nominal value of

$100,000 were forfeited and were transferred to Allotment

Suspense Account.

as due from him. These 1000 shares appear to have been

forfeited on 30.4.28 according to Ex.M. I don't romember if

this man was a director. So despite fact that his shares had

be en forfeited they were included in share capital and the

uncalled portion of them in assets side. It never was a debt

to Co. and so never was an aanet. It must have been known

to those who prepared the balance sheet as something which

could not have been realised.

This $100,000 forms part of $550,000 shown

Accounts Receivable $221,560.67 includes 10 of unalloted

capital $1,133,000 $113,300. That never was an asset to

Co. That entry is absolutely false as to $113,300.

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Item Collateral Security Loans (Short Term & at call)

$349,630.

So far as I have be able to find there is no collateral

security. 1 see a number of loan forms similar to Ex.I and

some promissory notes. In all, these here total $205,500.

According to books loans originally granted to shareholders

total $761,100 including $432,000 to Mrs. Brewer and at time

of balance sheet had been reduced to $549,630 I found no

collateral security at all, merely forms similar to Ex.I and

a few promissory notes. Statement in balance sheet that was

collateral security to this amount is absolutely false.