NOTES ON THE SCHEME OF CONTROL STATEMENT
1.
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 calculated 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 averagë 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 1 September 1975, and is subject to review by the Government every two years.
2.
Profit and Loss Account
for the year ended 31 December 1995
1995 HK$'m
1994 HK$'m
Turnover
Fare receipts
Other operating income
3,930.3 42.8
3.462.1
38.0
3,973.1
3,500.1
Other income
97.6
8-.1
4,070.7
3,584.2
Operating Costs
Staff costs
2,201.1
1,920.7
Fuel and oil
187.4
163.7
Repairs and maintenance
543.4
526.5
Amortisation and depreciation
252.5
222.6
Interest expenses
28.9
28.4
Other expenses
317.2
231.8
3,530.5
3,093.7
Operating profit
Exceptional item
Profit before taxation
Taxation
Profit after taxation
540.2
490.5
1,710.8
540.2
2,201.3
77.1
84.5
463.1
2,116.8
62
E