Scheme of Control Statement for the Year Ended 30th June, 1991
(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 the Government every two years.
The calculations shown below are in accordance with these agreements:
Profit /(loss) for control scheme
Transfer from development fund
1991
1990
$000's
$000's
41,551
(386)
4,862
49,828
46,413
49,442
Deduct :
Interest on development fund
Interest at up to 8% p.a. on borrowed capital
46,413
49,442
Add:
Items not ranking for scheme of control
Profit attributable to shareholders
23
19,673
20,552
66,086
69,994