CMB_1992 — Page 27

Scheme of Control Statement for the Year Ended 30th June, 1992

(Expressed in Hong Kong dollars)

The financial operations of the company are governed by a profit control scheme, the main features of which are as follows:-

(a) The annual permitted return of the company is fixed at 15% of the average net fixed assets, including spare parts and

stores used for bus operations.

(b) Any difference between the annual permitted return and the adjusted profit after taxation is to be transferred to or from

a development fund.

(c) The following are to be deducted from the permitted return:

(i) a charge of 8% p.a. on the average balance of the development fund which is to be added to the development

fund, and

(ii) interest up to a maximum of 8% p.a. on borrowed capital.

(d) The operation of the scheme commenced on 1st September, 1975, and will continue until 31st August, 1993.

The calculations shown below are in accordance with these agreements:

1992

1991

$000's

$000's

Profit for control scheme

Transfer (to)/from development fund

Deduct:

Interest on development fund

68,649

41,551

(12,539)

4,862

56,110

46,413

(501)

Interest at up to 8% p.a. on borrowed capital

55,609

46,413

Add:

Items not ranking for scheme of control

19,813

19,673

Profit before extraordinary items attributable to shareholders

75,422

66,086

24