CMB_1995 — Page 32

Notes on The Accounts (Continued)

19. CONTINGENT LIABILITIES

At 30th June, 1995, there were potential contingent liabilities in respect of third party claims in connection with the operation of franchised motor buses amounting to approximately $147 million (1994: $132 million) for which a full provision of $147 million (1994: $132 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.

20. OPERATING LEASE COMMITMENTS

At 30th June, 1995, 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

1995

1994

$000's

$000's

2,790

5,195

10

168

2,800

5,363

21. CAPITAL COMMITMENTS

There were no capital commitment other than those disclosed in note 10 outstanding at 30th June, 1995 not provided for in the

accounts:-

Contracted for

Authorised but not contracted for

Group and company

1995

1994

$000's

$000's

21,133

22. POST BALANCE SHEET EVENT

years

Subsequent to the balance sheet date, the Governor in Council has renewed the company's franchise for another three from and including 1st September, 1995 to operate a public motor buses service in Hong Kong on certain specified routes in which 14 routes under the existing franchise are not included. It is not practicable to quantify the financial impact on the company in connection with the reduction in the number of bus routes to be operated.

23. COMPARATIVE FIGURES

Certain items in the comparative figures have been reclassified to conform to the current year's presentation.

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