CAB129-37 — Page 236

For the reasons set out in the general note on the Accounts, full records of the movement of stocks of stores and materials were not maintained.

A physical count of all stocks in East Africa was undertaken during March, 1949.

Stocks in East Africa have been valued at landed cost, estimated cost or local purchase price together with an estimated addition, in certain cases, to cover handling charges at port and up-country freight.

The value of the stocks issued has been arrived at by deducting the value of the stocks in hand at March 31, 1949, from the aggregate of the stocks in hand at February 29, 1948 (as described in the notes attached to the February 29, 1948, Accounts) and the cost of shipments received and local purchases made since that date, together with landing charges and up-country freight.

The available records of issues for use on Capital works either to Con- tractors or the Corporation's own departments and issues for sale to outside parties have been evaluated and the appropriate charges made. The balance of £2,542,360 has been charged to-" Development, Land-Clearing and Agri- cultural Expenditure"; this sum covers stores consumed, losses due to wastage or pilferage and the writing down of unserviceable material.

Stocks in the United Kingdom and in transit have been valued at cost.

Note 11. Cultivation in Progress

The value of growing crops has been calculated on the basis of the esti- mated crop valued at selling price agreed with the Ministry of Food, less the estimated cost of harvesting and selling.

Note 12.

Commitments

CURRENT LIABILITIES

The Corporation has commitments on contracts and orders outstanding amounting to approximately £2,000,000. In addition, there are commit- ments under existing contracts for the future delivery of goods and services. These commitments, which are considerable, are largely in respect of work to be carried out as directed from time to time on a cost plus fee basis and the financial commitment cannot, therefore, be assessed.

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The Corporation is a contributor with the Queensland Government under the Queensland British Food Production Act, 1948, to the financing of the Queensland British Food Corporation.

Note 13. Interest on Advances from the Minister of Food

The advances by the Minister of Food, made under Section 12 (1) of the Overseas Resources Development Act, 1948, are repayable by annuities com- mencing at a date to be agreed after the end of a development period. The rate of interest to be used in computing the annuity repayments has still to be settled. No provision has been made for interest in these accounts.

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