No. 7 (19I7) ADMINISTRATION REPORT, I917-18 



181 



subsequently however resold for Rs. 3,800 (not yet collected and 

 therefore not included in "receipts "), Rs. 7,821 as the total cost of 

 the motor launch "Leverett", and Rs. 3,560 for new sheds and 

 plant at the cannery. Capital outlay, minus depreciation, remains 

 of course as an asset, and merely represents the transmutation of 

 cash into property. 



20. Statements I {<?) and I {b) give details under the several 

 heads. Statement II is the list, ordered by Government, showing 

 tanks at present istocked and leased by the department. State- 

 ment III gives the result of the chank fisheries for the year. 



21. Statement IV gives the trading and profit and loss accounts 

 for the cannery. The expenditure side in these accounts differs 

 from that in Statement I which only shows drawings from the 

 treasury, whereas Statement IV gives on one side the expenditure 

 cash and of materials from stock, and on the other the receipts 

 inclusive of stock in hand (taken at cost price) at the close of the 

 year. This of course is the usual manufacturing method and gives 

 a true account of results. The profit and loss account shows a net 

 l-irofit of Rs. 8,151 on cannery operations after deducting all charges 

 for staff, operations, depreciation and interest. 



22. Statement V is similar for Tanur and shows a net loss of 

 Rs. 997. This is due to the small output of a factory carrying on 

 a series of comparatively small operations, which though techni- 

 cally and commercially successful, were insufficiently large to 

 cover the disproportionate cost of establishment. Moreover the 

 year in Malabar was very bad for oil and guano operations ; a few 

 extra tons of fat sardines would have converted the deficit into a 

 profit. The loss is really debitable to research as the factory is 

 mainly experimental. 



23. Notwithstanding then the heavy expenditure for " Super- 

 vision and Research " and for experimental work, and the fact that 

 these objects cover fifteen months' expenditure as against only 

 twelve months' receipts in certain large items, the departmental 

 balance sheet for 1917-18 is not unsatisfactory. Moreover, in 

 perhaps the current and certainly in subsequent years, the net 

 income should be considerably increased by operations already 

 begun or beginnmg, such especially as the fishing of existing deep 

 water tanks, e.g., those of the Sangam and Nellore works and the 

 new Mopad reservoir. It is further to be noted that the income of 

 the department is obtained without raising a single anna by 



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