Notes on The Accounts (Continued)
18. CONTINGENCY RESERVES
Major repairs to motor buses
At 1st July
Payments during year Provision for the year
At 30th June
Insurance
Third party claims
At 1st July
Payments during year
Provision for the
year
Written back during the year
At 30th June
Insurance
}
Group and company
1997
1996
$000's
$000's
6,300
5,500
(6,195)
(6,340)
6,195
7,140
6,300
6,300
159,569
147,346
(8,341)
(7,194)
19,417
(7,947)
143,281
159,569
Consequential fire loss
At 1st July
94,500
92,500
Provision for the
year
2,000
Written back as exceptional non cash item (note 4)
(74,500)
At 30th June
20,000
94,500
163,281
254,069
169,581
260,369
19. CONTINGENT LIABILITIES
At 30th June, 1997, there were potential contingent liabilities in respect of third party claims, in connection with the operation of franchised motor buses, amounting to approximately $143 million (1996: $160 million) for which a full provision of $143 million (1996: $160 million) has been included in contingency reserves. In the opinion of the directors, the amount provided is sufficient to cover any liabilities which may subsequently arise in respect of these claims.
20. OPERATING LEASE COMMITMENTS
At 30th June, 1997, the group and the company had commitments under operating leases for land and buildings to make payments in the next year as follows:-
Group and company
Leases expiring:
Within 1 year
After 1 year but within 5 years
29
1997
1996
$000's
$000's
2,749
2,933
150
2,749
3,083
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