CMB_1994 — Page 26

Notes on The Accounts (Continued)

16. DEFERRED PROFITS

Balance brought forward

Additions

Balance carried forward

The group

The company

1994

1993

1994

1993

$000's

$000's

$000's

$000's

383,364 177,373

383,364 271,917 177,373

271,917

560,737

383,364

449,290

271,917

The additional deferred profits for the year represent the deferred portion of the profits from the sale of land and buildings to an associated company during the year.

17. DEFERRED LIABILITIES

Employees' retirement schemes

At 1st July

Payments during year. Provision for the year

Reclassification as current liabilities

At 30th June

Group and company

1994

1993

$000's

$000's

176,119

152,353

(60,279)

(5,553)

29,765

29,319

(44,244)

101,361

176,119

The company operates separate non-contributory defined benefit employees' retirement schemes for their daily-rated and general monthly-rated staff and senior executives.

In accordance with the franchise which became effective on 1st September, 1993, these schemes are required to be separately held and managed by trustees. The company is to transfer the funds to the schemes in five equal annual instalments, the amount of which was determined with reference to an actuarial valuation of the company's liabilities as at 31st March, 1994, to liquidate the balance of deferred liabilities of the company. Payments during the year included the first instalment paid in June 1994 amounting to $40 million. Thereafter, regular contributions to the schemes are to be made by the company with reference to the rates of contribution calculated by the actuary,

The amount reclassified as current liabilities represents the second instalment of the funds transfer, which will be payable in 1995, and the regular contributions payable in relation to the year ended 30th June, 1994.

18. 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

1994

1993

$000's

$000's

6,500

7,000

(5,439)

(6,450)

4,439

5,950

5,500

6,500

195,500

153,000

(7,666)

(5,510)

33,025

48,010

220,859

195,500

226,359

202,000

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