Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698071998796.pdf (Guyana)
J-7f BRITISH OUIANA CREDIT CORPORATION (Incorporruted by Ordinance No.

13 of 1954) MEMBERS OF THE BOARD OF THE CORPORATION · AS AT 30TH JUNE, 1960.

J. H. McB.

Moore, Esq., O.B.E., F.C.I.S., A.C.I.I.

Chairman.

W. M. Green, Esq., Deputy Chairman.

The Deputy Financial Secretary, A. C. Grieve, Esq., C. P .

B. Melbourne, Esq., M.B.E., Hamid Rahaman, Esq., \' E. C. Rodrigues, Esq., Gobin Biragie, Esq., Vincent Roth, Esq., 0.B.E.

V. J. Willems, Esq.
V. J. Willems, Esq.

MEMBERS OF THE BOARD OF THE CORPORATION WITH EFFECT FROM 26TH SEPTEMBER, 1960.

J. H. McB.

MOORE, Esq., O.B.E., F.C.I.S., A.C.I.I, Chairman.

Andrew H. James, Esq., Deputy Chairman.

The Deputy Financial Secretary, Gobin Biragie, Esq., Peter Andersen, Esq., Joseph Jardim, Esq., Ivan Remington, Esq., Oswald H. Fisher, Esq., Jacob Bowman, Esq., Mantaz Ali, Esq., GENERAL MANAGER G. E. Luck, B.A., B.Sc., Econ.

(Hons.)

LL.B.

(Hons.)

London, Barrister-at-Law.

SECRETARY L. E. Kranenburg.


CHIEF ACCOUNTANT P .

C. Yansen, A.A.C.C.A. "'

Mr. W. G. Carmichael held the post of General Manager until his res,ignation on 1st May, 1960. ;.. Mr. Luck assumed duty on 16th December, 1960. ;;;>£ REPORT ON THE OPERATIONS OF THE BRITISH GUIANA CREDIT CORPORATION FOR THE YEAR ENDED 30TH JUNE, 1960.

1.

Members: There was no change in t he Member ship of the Board of the Corporation during the year under review.

The term of office of Mr. J .

H .

McB.


Moore, as Chairman, expired on 25th June, 1960, but he was re appointed Chairman for a further period of 2 years expiring 25th June, 1962.

The term of office of Mr. W. M. Green as Deputy Chairman expir ed on 25th June, 1960, and it was extended to 25th September, 1960.

2.

Management : Mr. W. G. Carmichael, whose engagement as General Manager had expired did not renew his Contract and left the service of the Corporation on 1st May, 1960.

3.
3.

The Accounts : The Audito,r s' Report on the accounts of the Corpora tion for the year, together with statement of Income and Expenditure and Balance Sheet for the same period is attached hereto.

INCOME & EXPENDITURE ACCOUNT Interest charged to borrowers from the Corporation totalled $660,572, but more than half of this amount was absorbed in interest payable to the Government of British Guiana on Treasury Advances to t he Corporation.
Net Income exceeded Expenditure by $81,565, but this was not enough to offset bad debts written off.

Since the establishment of the Corporation in 1954, consideration has been given to the provision of a sum adequate to meet losses for bad and doubtful debts; but it was not until 1958/ 59 that a sum of $225,000 was included for the first time in the accounts for this purpose.
In the first Report on the operations of the Corporation made for the two years ended 30th June, 1956, attention was invited (paragraph 19) to the fact that t he figures of losses did not take into account possible Bad Debts.

The Report emphasised that it was inevitable that such losses would emerge and that it would be prudent to build up an adequate reserve to provide against them.
Despite this, the Board of the Corporation at the time concluded that "no good purpose would be served by putting through a purely notional charge", thereby increasing the debit shown on Income and Expenditure Account.

No amounts were written off for the first three years.

The accounting system in operation until 1960 made it difficult to know the nature and the extent of the arrears in repayments.
The introduction of a new machine system disclosed for the first time that t he arrears of repay ment at 30.6.60 were $3,751,674 and t his represented one-third of the Corpora tion's capital.
Although the Board's Report for the two years ended June, 1956, express'ed the view that one of the most heartening features of the two years had been the satisfactory way in which repayments had been made against the loans granted, analysis of the existing arrears of $3¾M disclosed that these arrears were mostly in respect of loans made in 1954, 1955 and 1956.
In these circumstances, the Board of the Corporation has increased in this year's accounts the amount of $225,000 referred to above to $550,000 to meet Bad and Doubtful Debts.

The debit on Income and Expenditure is therefore $366,909.

I ;;> <i-Y L. The position could be summarised as follows: 4 Income Expenditure Excess of Income over Expenditure T reasury Interest Bad Debts .. Loss on Govt.

Bontls .

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Bontls .

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$120,646 2,828 Provision for Bad Debts Net Loss .. $689,050 226,319 462,731 381,166 $ 81,565 123,474 $ 41,909 $325,000 $366,909 British Guiana Government Bonds were taken over from the Loan Banks to the Government at in 1954 at book value $1-1,068 and were finally sold mar ket value of $11,240.

BALANCE SHEET Loans outstanding reached the peak figure of $10.8 million and lending had therefore to be restricted to amounts collected.
The Nominal Assets as at 30th J une, 1959, disappeared as the Government agreed to bear the initial cost $137,248 of s·etting up the Corporation in 1954, as well as the accumu lated loss of $191,983 at 30th {une, 1959.

This t ransaction reflected the reduction in the Corporation's working capital to the ext ent of $329,231 which had accumulated since the beginning of operations.
As r egards liabilities, the Government of British Guiana has assumed responsibility for the outstanding amount of $78,858 due the defunct Loan Banks Shareholders in respect of unredeemed shares, plus undistributed profits and dividends.

Since 1954 the Corporation has paid out $181,874 in claims, and demand had by June, 1960, dwindled to a negligible figure.

4.
4.

Loans Made And Loan 1tepayments : Appendix A to this report shows the monthly payments made against loans authorised, while Appendix B shows the monthly collections in respett of loan repayments.

From these statements it will be observed that for the year ended 30t h June, 1960, a sum of $2,274,700 wa s paid out in loans, and t hat collections for the same period amounted to $2,492,431.

The actual number of applications dealt with during the 12 months period covered by this r eport was 1,374.
Of these 833 were granted, 446 were rejected and decisions on 95 were deferred, pending further investigations.

5.

Housing : As has beer,i the case from the time the Corporation was established in 1954, Housing continues to be the most important part of the Corporat ion's activities, both as regards the number and value of applications made and granted, and in the amount collected annually.
Housing loans' ac counted for no less than 43.5% of the total amount of the loans made during the year, and for 50 % of the tot al collections.

For 1959 /60 433 housing loans ;;) S3' 5 were made to the value of $963,685 with repayments totalling $1,249,418; in comparison with 355 loans totalling $822,231, and repayments $1,115,146 in the 1958/ 59 period.

6.
6.

Agriculture : Agricultural loans for the year numbered 118, involving expenditure of $496,682, as compared with 114 loans to the value of $252,863 in the previous year.

The increase in the value of these loans has been due principally to the increased acreage put under rice cultivation during the year, necessitating expenditure on clearing, empoldering and drainage works.

7.
7.

Industry: Applications for loans for the establishment or develop ment of industries, minor or otherwise, showed some increas·e-24 for sums totalling $237,900, as against 18 for an aggregate of $165,600 in 1958 /59.

8.
8.

Machinery : The amount paid out in loans for the purchase of machin ery was $517,433, and included the following items:- Agriculture 32 Tractors & Ploughs 1 Bulldozer 3 Self Propelled Combines 1 Dragline 1 Truck Industry 4 Bulldozers 3 Tractor /Winches 1 Rice Mill 2 Marine Engines 1 Generating Plant J. H. McB.

MOORE, Chairman, ANDREW H .

JAMES, Deputy Chairman, G. E. LUCK, General Manager.

Georgetown, British Guiana, 10th February, 1961.


>~~ BRITISH GUIANA CREDIT CORPORATION ACCOUNTS 30th JUN£, 1960.

FITZPATRICK GRAHAM & CO., CHARTERED ACCOUNTANTS.

DEMERARA.

2~7 9 COPY FITZPATRICK GRAHAM & CO., CHARTERED ACCOUNTANTS.

P.O.

Box 37, THE DEMERARA LIFE BUILDINGS GEORGETOWN, DEMERARA, 10th December, 1960.

REPORT OF THE AUDITORS TO THE GOVERNOR I'N COUNCIL ON THE ACCOUNTS OF THE BRITISH GUIANA CREDIT CORPORATION AS AT 30TH JUNE, 1960.
We have examined the annexed Balance Sheet and Incom:e and Expendi ture Account which are in agreement with the Books of Account and we report that : - 1.

So far as we have been able to asc·ertain the administration and trans actions of the Corporation comply with the relative provisions of Ordinance 13 of 1954.

2.
2.

In our opm10n and to the best of our information and according to the explanations given us the Balance Sheet is properly drawn up so as to give a true and fair view of the state of the Corporation's affairs at 30th June, 1960, and the Statement of In11ome and Expenditure gives a true and fair view of the exces·s of income over expenditure for the year ended on that date.

3.
3.

Subject to paragraph 4, we have obtained all the information and oxplanations which to the best of our kno•wledge and belief were necessary for the purposes of our audit.

4.

We cannot express an opinion about the adequacy of the Provisions for Bad and Doubtful Debts as the Corporation had not been able to give us an accurate valuation of s'ecurities held by them in respect of such debts.

Sgd.

FITZPATRICK GRAHAM & CO. CHARTERED ACCOUNTANTS } AUDITORS.
~ 30.6.59 BRITISH GUIANA BALANCE AS AT $ 9,093,417 I TREASURY (a) Advances for General Purposes of Corporation .

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$9,008,G93 (b) Food P r oduction Loans made by Corporation : 581,583 $ 9,675,ooo I Balances a t 30th June, 1960, per Contra 669,694 $ 1,020,602 1 (c) Co-Operative Cr~dit Banks : Advances fo1· Geperal Purposes-- taken ove1· by Corporation at 21st June, 1954.

$1,020,602 L~ss: Reduction of liability ia respect of provision for Bad & Doubtful Debts, as per Contra .

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.

50,000 (d) Collection by ti11;!

Corporation on behalf of the Treasury of Food Production Loans at 21st June, 1954, less payments to Treasury ancl Interest Adjustments (See Note 1) 50,000 $ 970,602 10,656 181,717 (e) Interest accrued oa (a) to (d') .

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$10,837,975 $9,678,387 970,602 6,877 189,663 $10,845,529 $10,837,975 Uiuried Forward : - $10,845,529 CREDIT CORPORATION >Pf SHEET som JUNEJ 1960 ao.6.59 I $ 39,327 5,208 51,043 4,246 1,218 $ 101,042 $ 9,712,463 CURRENT ASSETS Cash and Bank Balances Barclays Bank D.C.O.

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Royal Bank of Canada .. Post Office Savirigs Bank Cash in Hand-Head Office Cash ~n Hand-Branch Office $ 16,841 15,830 42,169 14,379 1,751 ,ans Outstanding Loans made by Corporation for Development Purposes, re- payments Less: Provision for Bad and Doubtful Debts less $10,175,011 500,000 $9,675,011 $ 90,970 97,0-!5 Loans, other than Food Production Loans from Co Operative Credit Banks, less re- payments taken over Less: Provision Doubtful Debts for Bad and Food Proc1uction Loans : - ( i ) Co-Operative Societies : Advances made on behalf of the Co-operative Develop- meat Department .. 514.277 I (ii) Farmers: Made on Treasury 67,30G ] Account (iii) Co-Operative Societies: Advances made on behalf of the Rice Marketing Board 89,930 I $ 10,-!81,021 Suncl1·y Debtors and Debit Balances Charges prepaid and debts due to the Corporation $ Investment Taken over f1lom Co-Operative Credit Banlrs $13,900 British Guiana Govern ment 3% Bonds $ 126,108 50,000 76,108 605,057 64,637 $ 669,694 47,896 717,590 $10,4.68,709 13,474 $ 10,614,738 Carried Forward:- , .
.. $10,573,153 710 30.6Ji9 $10,837,975 95,116 3,116 $ 98,232 55,226 238,320 181,614 $ ,56,706 22,412 $ 79,118 BRITISH GUIANA Brought l!
'urwar<l : - BRITISH GUIANA RICE MARKETING BOARD $10,845,529 .Advances Loans I nterest thereon for Food Production $ 95,116 5,769 100,885 115,051 SUNDRY CREDITORS AND CREDIT BALANCES Charges accrued and debts tlue by Corporation CO-OPERATIVE C~EDIT BANKS SHAREHOLDERS All.lonncs Outstancling : - (a ) Share Ca pital, R esen-es, Undis- tributed Profits, etc., as at 21st .June, 195-!

.

Less: Redeemed to 30th June, 1960.

.. (b ) Di\·il1Pnds Un<·laimed by Share holders at 30th .June, 19U0.
Less: T rausfen:ed to Treasury $238,320 181,874 $ 56,446 22,-!12 $ 78,858 78,858 CO-OPERATIVE qREDIT BANHS SUSPENSE Su rplus arising ~rom take-over, less acljustments NOTE: in the region of 1.

Au amount the to i5 payable $300,000 Treasury when collectecl by the Corporation in respect of Food Product ion Loans rr.ade prior to 21st June, 1954, through the Co operative Cred it Banks.
$11,070,551 $ 11,061,465 Georgetown, 10th February, 1061. CREDIT CORPORATION 30.6.59 $10,614,738 38,631 $ 38,631 :drought Forward:- FIXED ASSETS House: 274 Peter Rose Street, Georgetown, at cost, plus expen diturn thereon .

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Less: Depreciation to date $38,631 $ 3,555 8,057 102 $11,714 1,611 Office Premises 3,555 I at Cost-Yreed-en-Hoop 8,057 Grove Onclerneeming 11,612 806 I Less: Depreciation to date 10,806 $ $ $ $ Properties acquired 21,586 I loans by Co11poration to .secure $27,993 Less: Depreciation to date ~ 21,586 $ $ 71,023 72,745 ,Furniture & Fittings: Heacl Office 7,5T7 5,4-1.5 Branches 274 Peter Rose St. .. $ 85,767 33,389 I Less :-Deprecia tiou to date - - - - - fi2,3T8 $ $72,746 7,729 5,599 $86,074 $41,996 $ $ $ $ 3,400 1,020 2,380 1,20T 40G 801 $ 126,582 Motor Cat· at Cost Less: Depreciation to date $ Craft at cost, plus e:s:penJiture thereon Less: Depreciation to elate $ 1,207 609 NOMINAL ASSETS Organisation Expenses : Provided for in development esti- mates in 1U54 to the extent of $200,000 .
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Income & Expenditme Account 1 as at 30th June, 1959. .

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Less: Transferrecl to Treasury ..

Excess of Expencliture over In come for the year to elate $ 137,248 $ $ 191,083 329,231 $11,070,551 >rjl $10,573,153 $ 38,631 $ 10,103 $ 27,993 $ 76,727 <l4,078 598 121,403 $137,2'1-8 191,983 $329,231 329,231 366,909 $11,061,465 J. H .

McB.
McB.

MOOREJ (Chairman) P. C. YANSEN (Chief .Accountant) ?yl STATEMENT OF INCOME AND EXPENDITURE BRITISH GUIANA 30.6.59 $ ' 92,794 66,192 5,843 $164,829 $ 1,543 9,065 366 $ 10,974 $ 8,134 2,614 2,224 $12,972 $ 2,302 1,950 2,19-1 4,951 6,000: 11,113 806 8,577 340 231 SAl,ARIBS AND :FEES Head Office Areas and Branches Members Fees .. TRAVELLING EXPENSES Head Office Areas and Branches Members RENTS, ETC.

Head Off ice-Rent & Lighting Areas and Branches- Rents 274 Peter Rose Street, Georgetown .
Repa i rs, et1 PRIN'rlNG & STA1.~ 0NERY POSTAGES, TELEPHONES, ETC.

LEGAL EXPENSE~ GENERAL EXPENSES AUDI1.'

FEES .

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BAD DEBTS WRITTEN OFF PROVISION F OR BAD AND DOUBTFUL .

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DEBTS DEPRECIATION .. 274 Petet· R ose Street, Georgetown Office Pre mises-G rove .

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Furniture & Fittino-s ' "' Motor Cat· ..

Craft $ 9,954 -$ -·=- LOSS ON REAL~SATION OF BRITISH GUIANA GOVERNMENT BONDS $ 12,471 LOSS ON SALE OF QUEENSTOWN I PROPERTY ..
EXCESS OF INCOME OVER EXPENDITURE TRANSFERRED TO INCOME Al\1D EX PENDITURE ACCOUNT .

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$95,357 67,359 5,760 $ 5,116 10,162 396 $ 8,279 2,737 1,773 $ - 806 8,607 580 203 $168,476 15,674 12,789 5,492 2,264 197 5,228 6,003 120,646 325,000 10,196 2,828 $!

:!U2,75' $674,793 fl eorgetown, 10th February, lDGl.

CREDIT CORPORATION >-95 FOR THE YEAR ENDED 30TH JUNE, 1960. '

I '3-0.6.59 1 .

:.
I '3-0.6.59 1 .

:.

$242,870 $588,415 INTEREST ON LOANS TO BORROWERS .. 345,545 1 Less: Interest on Treasury Advances OTHER INTEREST Post Office Savings B ank Government 3% B onds .. $ 4,155 I 417 , $ 4,572 COMMISSIONS, DISCOUNTS, ETC.

Proportion of Interest collected on Food Production L-Oans made by Co-Operative Credit Banks Insurance and other Commissions General Discounts, etc.

Valuation Fees Received .

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$ 1,080 5,418 17,887 1,424 $ 1,517 I 4,755 7,838 1 1,201 $ 15,311 EXCESS OF EXPENDITURE OVER INCOME As per Balance Sheet i- $660,572 381,166 $ 2,252 417 $279,406 2,669 25,809 366,909 $262,753 $674,793 J'.

H .

McB.

MOORE (Chairman) P. C. YANSEN (Chief Accountant) APPENDIX A Summary of Loans Paid V --.....,_<') \:'._ Sundry MONTH Disburse- mcnts No.

Amouoi N o, Amount No.

Amount No.

Amount No.

Amount No.

Amount No.

Amount No.

Amount No.


Amoun\ Agriculture Industry Fishing Rural & Ur- ban H ou&ing Public Officers Local Authorities Food Production Ranching & Logging TOTAL 1959 July Ang.
Sept. Oct. Nov. Dec. 1960 Jan. Feb. March April May June Total for Year Total Jun~ 1954 to June 1960 5,177 5,817 10 13 Gl,111 30,990 27 26 42,54-9 50,196 7,547 24 7B,33!J 21 ~24:656 5,135 14 92,733 8,213 4,8:::S 40,6'!6 25,143 20 29,176 5 7,706 10 16,006 3,911 17 9S,591 ,J,513 116,93'7 179,810 184,655 126,981 268,341 324,587 67,041 118 496,682 338 471,116 95 492,569 24 237,911 1 1,296 103 508,086 679 2,274,701 67,041 3,886 S,272,431 7,612 6,454,052 605 S,094,028 G87 2,670,895 62 180,630 1 6 06,000 2,608 2,480,070 16 146,708 15,48218,481, 712 APPENDIX B Summary of Repayments I Agriculture I Urban Rural & I Public I Offic~rs I Housing I Housrng Industry I Fishing I Food I and Production I Ranching I Local I Authori- ties Logging I Total 12,117 12,545 14,873 61,257 71,486 66,050 43,999 47,841 30,746 45,878 33,643 25,546 I 47,387 I I 35,360 j 50,422 59,828 61,934 101,681 89,233 74,180 88,749 57,376 64,224 71,929 71.568 21,639 32,888 33,218 27,747 50,886 25,549 27,158
- - - - - 125 - - - - 3,852 - - 510 2,783 5794 - - - - 108 127,443 122,114 129,602 200,610 284,399 323,290 ~ ,._.
225,036 280,500 188,627 219,371 189,621 1 ,374 201,818 14,421 2,492,431 43,428 465,981 838,511 1 410,007 199,300 14,880 504,418 585 - -- 43,428 2,133,702 4,050,507 1,280,369 1,571,119 83,319 2,364,678 9,355 37,9S3 11,574,460 Month - - - 1959 July August September .

October November D ecember 1960 January February March .A11ril May June I Disburse- ments Recoup 5,706 5,283 2,047 4,575 4,269 2,832 3,299 4,369 2,485 3,245 2,875 2,443 --- Total for Year Total J une I 1954 to June 1960 ..

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