Notes on the Consolidated Cash Flow Statement
(a) Reconciliation of operating profit to net cash inflow from operating activities
1996
1995
HK$'000
HK$'000
Operating profit
588,580
540,222
Amortisation and depreciation
H
293,004
252,579
Interest income
(30,723)
(32,447)
Interest expenses
31,282
28,936
Decrease/(increase) in spare parts and stores
9,083
(38,362)
Increase in accounts receivable
(7,193)
(8,957)
Decrease/(increase) in deposits and prepayments
6,094
(3,007)
Increase in accounts payable
52,835
51,546
Profit on disposal of fixed assets
(3,034)
(2,337)
Provision for staff retirement fund
134,300
120,000
Provision for contingency
107,281
61,803
Effect of foreign exchange rates
(563)
71
1,180,946
970,047
Net cash inflow from operating activities
(b) Analysis of changes in financing during the year
Balance at 1 January 1996
Cash inflow from financing
Balance at 31 December 1996
(c) Analysis of the balances of cash and cash equivalents
Bank Loans
HK$'000
429,254
73,458
502,712
1996
1995
HK$'000
HK$'000
Cash at bank and in hand
445,381
453,675
Bank loans and overdrafts repayable within three months
(14,497)
(8,963)
430,884
444,712
46