Scheme of Control Statement
For The Year Ended 30th June, 1990
(Expressed in Hong Kong dollars)
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 fixed at 15% 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 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.
(d) 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:
1990
1989
$000's
$000's
(Loss)/profit for control scheme
(386)
45.012
Transfer from development fund
49,828
195
49,442
45,207
Deduct:
Interest on development fund
(4,058)
Interest at up to 8% p.a. on borrowed capital
(10)
49,442
41.139
Add:
Items not ranking for scheme of control
Profit attributable to shareholders
20,552
17,179
69,994
58.318
22