Document 2jKppkaz743ENBzz6d3L5KGG5

Australian Blue Asbestos Limited 001 40 GAO.AooMftt all lctth SDMC. Ay*tAUlA CAtLcS $m6AH. S't 'CRTH WCStCft* AJ/STRAl'* MANAGING AG C NTS Tne Colonial Sugar Rsfining Company Limited 1-7 O St.. SONt. Ag*TR*UA S" O t O V ` O G 3m. MINES A MILLS wirriNOOM GO"< AVftT*kA Private Do. 15 1th -June, 1956 The Manager, Australian Blue Asbestos Ltd*, 39 -St.Georges Terrace, PERTH. V.A. Dear Sir, HTP5D ?L;.;rr. It has been decided that .-..l .A. Ltd. should purchase from C.3.R. Co. Ltd. all plant now on hire from 1.5.?.. Co., the total purchase orice ceing 160,000. This transaction will take place immediately so that this plant will be part of 1.1 .A. ltd. fixed assets in the June, 1956, balance sheet. :?o charge for hire will be made by the C.3.R. Co. for the quarter ending 3?th Jure, 1956. The purchase of this plant should help A.!.A. Ltd. to obtain taxation benefit from past losses. x.B.A.'s expenditure will be re duced and its anticipated profit for taxation purposes increased (provided no claim is made at present for depreciation; as follows Reduced exoenditure by A.3.A. 8 on 323,000 now paid tc C.S.R. Co.Ltd 27,300 ?.a. Less 3p interest on 160,000 received from C.3.R. Increase in --.l.n.'s anticipated orofit for tax purposes ?4,300 p.a* 23,000 p.a. This increased profit will assist in making sure we get as much taxation advantage as possible from past losses. ho claim for depreciation for taxation purposes should be made on our present assets or on these further assets until we have absorbed all possible past losses. i-fr. Broadhurst should discuss this vrith our auditors to make sure the nosition is clear. In A.B.A.'s books of course, depreciation on the 160,000 should be taken into account as for present plant and should be commenced as from 1st July, l?p6. Any Hired plant -raid for by C..3.R. since included in C.3.?,.fs llay A/c to be rendered tc you. st /arc be ..-o// - 2- The Manager, Australian Blue Asbestos Ltd (Perth) ? No. 15 3th June,1956 The transaction for the take over of this Plant will be arranged through C.3.R. Co. Perth's account with A.3.A. lioneys -.ring by C.3.P. on account of fibre sales are accounted for in your Sundry Debtors' a/c, C .' s monthly a/c will therefore show. 3y Sundry Debtors Transfer of fibre sale proceeds 160,OX To Plant Take over of plant previously 160, 000 on hire from C.S.R. Co, Yours faithfully, Managing Director. 59