CAB129-37 — Page 233

Page 233

Page 233

Page 233

Note 5 Page 234 of 1097

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Page 234 The valuation in the SOUTHERN PROVINCE could not be completed in

ERN time for inclusion in the Balance Sheet. Buildings and installations for this. region have, therefore, been shown at the cost of erection according to the books of the Contractors concerned. For the reasons given in Note 1, the allocation of costs made by the Contractors to these assets is arbitrary; however, a valuation will be completed in the year ending March 31, 1950, in accordance with the principles adopted in other Regions.

Note 6. Plant, Machinery and Vehicles

A census of these assets has been taken throughout all the areas of opera- tions in East Africa. The assets so disclosed have been valued at the landed cost in East Africa, or where the landed costs were not available at estimated landed costs.

The valuation showed a deficit over the recorded costs which has been transferred to " Development, Land-Clearing and Agricultural Expenditure."

Note 7. Furniture and Office Equipment

The gross figure in the Balance Sheet is made up as follows:·

£

(a) London Office furniture and equipment at cost (b) East African furniture and office equipment at

cost, as recorded in the books

...

26,364

423,932

£450,296

For the reasons set out in Note 1 full information regarding the value of East African furniture and office equipment was not available, and cannot be made available until an inventory has been completed.

A provision for depreciation of £51,139 has been made representing: -

(a) £1,139 for London Office furniture and equipment.

(b) £50,000 for East Africa furniture and office equipment.

Note 8. Development, Land-Clearing and Agricultural Expenditure

Since the Corporation's activities are still largely in the development stage, all expenditure of a Revenue nature, and such expenditure on Capital Account as has not been allocated to individual assets, has been charged to this account.

These charges include the cost of Land-Clearing, and when adequate experience of this operation in East Africa has been obtained an appro- priate transfer will be made to a Land-Clearing Account.

CURRENT ASSETS

Note 9. Expenditure recoverable from East African Railways and Harbours This represents the cost to the Corporation of the work carried out on the new harbour at MTWARA, the railway line in the SOUTHERN PROVINCE, and the branch from the Central Line to KONGWA.

These assets are to be taken over by East African Railways and Harbours.

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