CMB_1990 — Page 35

China Motor Bus Annual Reports 中華巴士年報 All

17. 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

1990

$000's

1989

$000's

6,500

6,500

(5,467)

(5,670)

5,467

5,670

6,500

6,500

108,500

82,000

(11,262)

(2,500)

26,562

29,000

123,800

108,500

130,300

115,000

18. Contingent liabilities

At 30th June, 1990, there were potential contingent liabilities in respect of third party claims in connection with the operation of franchised motor buses amounting to approximately $82 million (1989: $72 million) for which provision of $77 million (1989: $72 million) has been included in contingency reserves. In the opinion of the directors, the amounts provided are sufficient to cover any liabilities which may subsequently arise in respect of these claims.

19. Operating lease commitments

At 30th June, 1990, the group and the company had commitments under operating leases for land and buildings to make payments in the next year as follows:-

Leases expiring:

Within 1 year

After 1 year but within 5 years

Group and company

1990

1989

$000's

$000's

726

595

174

222

900

817

20. Capital commitments

Capital commitments outstanding at 30th June, 1990 not provided for in the accounts were as follows:-

Contracted for

Authorised but not contracted for

21

Group and company

1990

1989

$000's

$000's

549

1,998

457

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