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:
b
с
d
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.
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 1 September 1975, and is subject to review by the
Government every two years.
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