KMB
九巴服務 日日進步
SCHEME OF CONTROL STATEMENT
for the year ended 31 December 1993
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.
e.
f.
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.
As a result of the implementation of concessionary fares to senior citizens in 1993, a sum
of HK$12 million has been deducted from the permitted return for the year.
Any difference between the annual permitted return, as adjusted for the amount referred
to in (b) above, 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.
There is a shortfall of return permitted by the Government of approximately HK$1.3
million for the year. The total shortfall of permitted return including the accumulated
shortfall of permitted return brought forward from previous years of HK$41.5 million,
approximately amounted to HK$42.8 million.
The operation of the scheme commenced on 1 September 1975, and is subject to review
by the Government every two years.
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