"ملف 19/176 VI موارد البحرين المالية" [و‎‎٣‎١] (٢٥٣/٦١)

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. Cn the liability side of the "Balance Sheet"
1361 we see a free use of the term "Reserve".
"Deprec^iation 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
"Bad Debts" might, and frequently do, figure in accounts.
Under "Operating Reserve" there is the sum of io.1,36,403-
-16-3 without any indication of how this sum was arrived at;
we have already noted ftn "Operating Reserve" of is.48,761-13-1
in the "Profit and Loss Account" 1361.
3. Graphs
The graphs showing "Units Generated" and "Revenue in I-Upe^V
are misleading, for the revenue is shown at half the scale of
the units generated. Thus the variation in the "Revenue"
graph is only half as great as the variation in the "Unit'^raph.
The "Revenue" scale should in future reports be the same as
the "Units Generated" scale.
III - STATE BUDGST
RSVKNU3S
1. Oil Royalty . The Adviser is correct in giving a
conservative estimate under this head. 1 have oeen given to
understand that the expansion of the Refinery will not affect
the royalty paid to the Bahrain Gtovernment/^» yuaJ.
2. Customs . As the Bahrain Customs duties are assessed
on the value of the articles imported and not on the quantity
the revenue will only decrease when the value of the uoual
imports falls below that of the previous year. I see little
likelihood of this occurring in view of iJae continual rise in
prices and I consider that this should have been taken into
account when assessing the probable revenue under ohis head.
I believe that the customs revenue this year has already exceede<
the budget figure by some six lakhs of rupees.
3. Suspense Accouht . rhe sum of hs.7,73,000 has been
/shown