SCHEME OF CONTROL STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER, 1992
The financial operations of the Company are governed by a profit control scheme, the main features of which are as follows:
a.
b.
C.
d.
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.
Any difference between the annual permitted return and the adjusted profit after taxation is to be transferred to or from a development fund.
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.
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 :
1992
HK$'000
1991
HK$'000
Profit subject to Control Scheme
345,710
348,644
Transfer from/(to) Development Fund
3,163
(29,427)
Annual Permitted Return
348,873
319,217
Deduct:
Interest on development fund
2,322
1,177
Interest at up to 8% p.a. on borrowed capital
34,278
35,199
312,273
282,841
Add:
Items not ranking for scheme of control
18,215
15,474
Profit attributable to Shareholders
330,488
298,315
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