Page 198 - Records of Bahrain (6)_Neat

: 186 Records of Bahrain
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2.
as being in the bank. This may be due to the fact that the
money has only just been invested and therefore dividends have
not become due. On the liability side of the "Balanco Sheet"
; 1361 wo see a free use of the term "Reserve".
"Depreciation Reserve" could possibly be better described
as a "Replacement Fund" while it should not be necessary to have
* a "Reserve for Bad Debts" in your "Balance Sheet"; although
"Bod Debts" might, and frequently do, figure in accounts.
l
Under "Operating Reserve" there is the sum of K». 1,36,409-

-15-3 without any indication of how this sum was arrived at;
we have already noted (fen "Operating Reserve" of i\s.48,761-13-1
in the "Profit and Loss Account" 1361.
3. Graphs
The graphs showing "Units Generated" and "Revenue in lUpefg1
r
are misleading, for the revenue is shown at half the scale of
the units generated. Thus the variation in tho 'Rovonue"
graph is only half as great as the variation in the "Unit"graph.
The "Revenue" scale should in future reports bo the same as
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the "Units Generated" scale.

III - STATE BUDGET

REVENUES
1. Oil Royalty. Tho Adviser is correct in giving a
conservative estimate under this head. I have been given to
understand that tho expansion of tho Refinery will not affect
the royalty paid to tho Bahrain Government/^
2. Customs. As the Bahrain Customs duties ore assessed
on the value of the articles imported and not on th6 quantity
the revenue will only decrease when the value of the total
imports falls below that of the previous year, I seo little
likelihood of this occurring in view of the continual riso in
prices and I consider that this should have been taken into
account when assessing tho probable rovonue under this head*
I boliovo that tho customs rovonue this yoar has already oxceede(

tho budget figure by oomo six lakhs of rupoos.
3. Uusponno Accouht. Tho sum of Us.7,73,000 has boon
/shown