CMB_1997_Copy2 — Page 8

Report of the Directors (Continued)

EMOLUMENTS OF DIRECTORS AND FIVE HIGHEST PAID DIRECTORS/EMPLOYEES

(a) Directors

(i)

Aggregate emoluments

Details of emoluments of the Directors of the Company are set out in note 5 on the accounts.

(ii) Bandings

The emoluments in respect of the year ended 30th June, 1997 of all the directors of the company in office during the year were in the following ranges:-

Bands (in HK$) (1) Nil

-

$1,000,000

(2) $1,500,001 - $2,000,000

(3) $2,500,001 $3,000,000

(4) $5,000,001 - $5,500,000

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(b) Employees

Set out below are analysis of the emoluments (excluding amounts paid or payable by way of commissions on sales generated by the employees concerned) for the year ended 30th June, 1997 of two employees of the group who, not being directors of the company, are among the top five highest paid individuals (including directors of the company and other employees of the group) employed by the group. The emoluments for each of the two individuals for the year ended 30th June, 1997 were within the band from HK$Nil up to HK$1,000,000.

(1) the aggregate of basic salaries, housing allowances,

other allowances, and other benefits

(2)

the aggregate of the contributions to pension schemes

HK$

1,434,923

32,771

1,467,694

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES

year, neither the

During the

company nor any of its subsidiaries has purchased, sold or redeemed any of the company's listed securities.

EMPLOYEES' RETIREMENT SCHEMES

The company operates three separate non-contributory defined benefit retirement schemes, namely, "China Motor Bus General Monthly Rated Staff Retirement Scheme", "China Motor Bus Retirement Scheme" and "China Motor Bus Senior Executives Retirement Scheme" for its monthly rated staff, daily rated staff and senior executives respectively. All three schemes are formally established under trust and registered with the Registrar of Occupational Retirement Schemes. The assets of the schemes are held by independent trustees. The members' benefits are determined based on their final remuneration and length of service. The company's contributions to the schemes are made in accordance with the recommendations of independent actuaries who carry out actuarial valuations of schemes at regular intervals, currently annually, and charged to the profit and loss account. The company's contributions to the schemes during the year were made in accordance with the provisions in the respective trust deeds of the schemes. The total retirement scheme costs charged for the year for the three schemes amounted to HK$71,699,000.

The most recent actuarial valuation of the three schemes as at 30th June, 1997 showed that there were insufficient assets in each of the three schemes to cover either the solvency or on-going liabilities of the schemes with the exception that the Senior Executives Retirement Scheme was solvent as at 30th June, 1997. However, the company has made sufficient provision to provide for this deficiency in the accounts as set out in note 17 on page 28. The actuary of these schemes is Watson Wyatt Hong Kong Limited (formerly known as the Wyatt Company (H.K.) Limited). In the actuarial valuations, the aggregate cost valuation method was used. The major assumptions used in these valuations were: Investment Return and Salary Escalation at 8% per annum; Normal Retirement Age 65; Age related withdrawal rates. Other relevant information extracted from the valuations pertaining to these schemes is set out below:-

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