Notes on The Accounts (Continued)
16. DEFERRED PROFITS
Balance brought forward
Additions
Balance carried forward
The group
The company
1995
1994
1995
1994
$000's
$000's
$000's
$000's
560,737
383,364
449,290
271,917
189,442
177,373
177,373
750,179
560,737
449,290
449,290
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
1995
1994
$000's
$000's
101,361
176,119
(14,026) (60,279)
27,924
29,765
(30,371) (44,244)
84,888
101,361
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 as well as the Occupational Retirement Scheme Ordinance, 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. Regular contributions to the schemes are made by the company with reference to the rates of contribution calculated by the actuary.
The amount reclassified as current liabilities represents the third instalment of the funds transfer, which will be payable in 1996.
18. CONTINGENCY RESERVES
Group and company
Major repairs to motor buses
At 1st July
Payments during year
Provision for the
At 30th June
Insurance
At 1st July
year
Payments during year Provision for the year
At 30th June
27
1995
1994
$000's
$000's
5,500
6,500
(5,608)
(5,439)
5,608
4,439
5,500
5,500
220,859
195,500
(8,302)
(7,666)
27,289
33,025
239,846
220,859
245,346
226,359