Notes on The Accounts (Continued)

6. TAXATION (Continued)

(c) No provision for deferred taxation is required as there are net deferred tax assets for both the company and the group. The major

components of the unprovided deferred tax are:-

1.

Depreciation allowances in excess of related depreciation

General provisions:

- major repair to motor buses

- insurance

- employees' retirement schemes

-

-

- obsolescence of store and spare parts

others

Net deferred tax assets unprovided

DIVIDENDS

Group and company

1997

1996

$000's

$000's

40,917

46,386

(1,040)

(1,040)

(26,941)

(41,921)

(18,907)

(16,030)

(3,187)

(2,787)

438

250

(8,720)

(15,142)

Group and company

1997

1996

$000's

$000's

First interim dividend of $0.21 per share paid (1996: $0.21) Special dividend of $1.60 per share paid (1996: $0.16)

9,716

9,716

74,029

7,403

Second interim dividend of $0.10 per share declared (1996: $0.10)

4,627

4,627

Second special dividend of $1.40 per share declared (1996: $0.55)

64,776

25,447

Proposed final dividend of $0.50 per share (1996: $0.76) Proposed special dividend of $2.00 per share (1996: $2.00)

23,134

35,164

92,536 92,536

268,818

174,893

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