CMB_1996_Copy2 — Page 32

Notes on The Accounts (Continued)

16. DEFERRED PROFITS

The group

The company

1996

1995

1996

1995

$000's

$000's

$000's

$000's

Balance brought forward Additions

750,179

560,737 189,442

449,290 449,290

Balance carried forward

750,179 750,179

449,290 449,290

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

1996

1995

$000's

$000's

84,888

101,361

(15,980)

(14,026)

28,245

27,924

(24,225)

(30,371)

72,928

84,888

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 as well as the Occupational Retirement Schemes Ordinance, 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. Regular contributions to the schemes are made by the company with reference to the rates of contribution calculated by the actuary.

The amount reclassified as current liabilities represents the fourth instalment of the funds transfer, which will be payable in 1997.

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