CMB_1991 — Page 24

Notes on The Accounts (Continued)

17. DEFERRED LIABILITIES

Group and company

1991

1990

$000's

$000's

Employees' retirement gratuities

At 1st July

113,179

45,396

Payments during year

(15,611)

(917)

Provision for the year

29,255 68,700

At 30th June

126,823 113,179

18.CONTINGENCY RESERVES

Group and company

1991

1990

$000's

$000's

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

6,500

6, 500

(6,032)

(5,467)

6,032

5,467

6,500

6,500

123,800

108,500

(4,955)

(11,262)

15,455 26,562

134,300

123,800

140,800

130,300

19. CONTINGENT LIABILITIES

At 30th June, 1991, there were potential contingent liabilities in respect of third party claims in connection with the operation of franchised motor buses amounting to approximately $92 million (1990: $82 million) for which provision of $77 million (1990 : $77 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.

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