CMB_1987 — Page 18

5.

Taxation

(a) Taxation in the profit and loss account represents:-

The group

The company

1987

1986

1987

$000's

$000's

$000's

1986

$000's

Estimated liability to Hong Kong

profits tax at 18% (1986: 181⁄2%)

on the assessable profits of the year

20,712

10,015

20,500

9,800

Overprovision in respect of

previous year

(253)

(509)

(252)

(508)

20,459

9,506

20,248

9,292

(b) The liability to taxation represents:-

The group

The company

1987

1986

1987

1986

$000's

$000's

$000's

$000's

Estimated liability to profits

tax for the year

20,712

10,015

20,500

9,800

Balance of profits tax provision

relating to previous years

2,337

5,894

2.337

5,894

23,049

15,909

22,837

15,694

Taxation recoverable in respect

of previous year

(11)

(3)

23,038

15,906

22,837

15,694

Less: Tax Reserve Certificate

purchased under order

of the Commissioner

of Inland Revenue

(1,618)

(1,618)

21,420

15,906

21,219

15,694

6.

Dividends

Group and company

1987

1986

$000's

$000's

First interim dividend of

20 cents per share paid (1986: 18 cents)

9,254

8,329

Special dividend of

5 cents per share paid (1986: 5 cents)

2,313

2,313

Second interim dividend of

18 cents per share declared (1986: 18 cents)

8,329

8,329

Proposed final dividend of

32 cents per share (1986: 30 cents)

14,806

13,880

34,702

32,851

16