Scheme of Control Statement for the Year Ended 30th June, 1993
(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,
(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 will continue until 31st August, 1993.
and
The calculations shown below are in accordance with these agreements:
Profit for control scheme
Transfer from/(to) development fund
Deduct:
Interest on development fund
Interest at up to 8% p.a. on borrowed capital
Add:
Items not ranking for scheme of control
Profit before extraordinary items attributable to shareholders
24
1993
1992
$000's
$000's
44,091
68,649
13,040
(12,539)
57,131
56,110
(501)
57,131
55,609
12,189
19,813
69,320 75,422