Notes on The Accounts (Continued)
16. DEFERRED PROFITS
Balance brought forward
Additions
Balance carried forward
The group
The company
1994
1993
1994
1993
$000's
$000's
$000's
$000's
383,364 177,373
383,364 271,917 177,373
271,917
560,737
383,364
449,290
271,917
The additional deferred profits for the year represent the deferred portion of the profits from the sale of land and buildings to an associated company during the year.
17. DEFERRED LIABILITIES
Employees' retirement schemes
At 1st July
Payments during year. Provision for the year
Reclassification as current liabilities
At 30th June
Group and company
1994
1993
$000's
$000's
176,119
152,353
(60,279)
(5,553)
29,765
29,319
(44,244)
101,361
176,119
The company operates separate non-contributory defined benefit employees' retirement schemes for their daily-rated and general monthly-rated staff and senior executives.
In accordance with the franchise which became effective on 1st September, 1993, these schemes are required to be separately held and managed by trustees. The company is to transfer the funds to the schemes in five equal annual instalments, the amount of which was determined with reference to an actuarial valuation of the company's liabilities as at 31st March, 1994, to liquidate the balance of deferred liabilities of the company. Payments during the year included the first instalment paid in June 1994 amounting to $40 million. Thereafter, regular contributions to the schemes are to be made by the company with reference to the rates of contribution calculated by the actuary,
The amount reclassified as current liabilities represents the second instalment of the funds transfer, which will be payable in 1995, and the regular contributions payable in relation to the year ended 30th June, 1994.
18. CONTINGENCY RESERVES
Major repairs to motor buses
At 1st July
Payments during year
Provision for the year
At 30th June
Insurance
At 1st July
Payments during year Provision for the year
At 30th June
Group and company
1994
1993
$000's
$000's
6,500
7,000
(5,439)
(6,450)
4,439
5,950
5,500
6,500
195,500
153,000
(7,666)
(5,510)
33,025
48,010
220,859
195,500
226,359
202,000
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