CMB_1997_Copy2 — Page 32

Notes on The Accounts (Continued)

16. DEFERRED PROFITS

The group

The company

1997

1996

1997

1996

$000's

$000's

$000's

$000's

Balance brought forward

Recognised when the properties were sold to third parties (note 4)

Balance carried forward

750,179 750,179 449,290 449,290 (264,702)

(187,751)

485,477 750,179

261,539 449,290

Part of the deferred profit was recognised and taken to profit and loss account as the properties were sold to third parties during

the year.

17. DEFERRED LIABILITIES

Group and company

1997

1996

$000's

$000's

Employees' retirement schemes

At 1st July

Payments during year

Provision for the

year

Reclassification as current liabilities

At 30th June

72,928

84,888

(30,040)

(15,980)

71,699

28,245

(36,458)

(24,225)

78,129

72,928

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 fifth instalment of the funds transfer, which will be payable in 1998.

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