SCHEME OF
CONTROL
The financial operations of the Company are governed by a profit control scheme, the main features of which are as follows:
a The annual permitted return of the Company is fixed at 16% of the average net fixed assets, including spare
parts and stores used for bus operations.
b Any difference between the annual permitted return and the adjusted profit after taxation is to be transferred to
or from a development fund.
c The following are to be deducted from the permitted return:
(i) a charge of 8% p.a. on the average balance of the development fund which is to be added to the
development fund, and
(ii) interest up to a maximum of 8% p.a. on borrowed capital.
d The operation of the scheme commenced on 1st September, 1975, and is subject to review by Government
every two years.
The calculations shown below are in accordance with these agreements:
Profit for Control Scheme
Transfer from Development Fund
1990
1989
HK$'000
HK$'000
282,649
259,812
STATEMENT
282,649
259,812
Deduct:
FOR THE YEAR
Interest on Development Fund
ENDED 31ST
Interest at up to 8% p.a. on borrowed capital
40,670
37,608
DECEMBER, 1990
241,979
222,204
Add:
Items not ranking for scheme of control
24,704
43,171
Profit attributable to Shareholders
266,683
265,375
48
:
Page 50Page 51