CMB_1998 — Page 28

Notes on The Accounts (Continued)

4. EXCEPTIONAL ITEMS

The group

The company

1998

1997

1998

1997

$000's

$000's

$000's $000's

Recognition of deferred profits (note 16)

11,707

264,702

8,304 187,751

Provision for insurance written back (note 18)

74,500

74,500

Effect of terminating the franchise on 31st August, 1998 (note 22)

(7,454)

(7,454)

Provision for diminution in value of interest in an associated company (note 10) (102,480)

(98,227) 339,202

850 262,251

5.

DIRECTORS' REMUNERATION

Directors' remuneration disclosed pursuant to section 161 of the Companies Ordinance is as follows:-

1998

$000's

1997

$000's

Fees

56

55

Bonus in accordance with article 155

3,292

1,488

Salaries, allowances and other benefits

10,566

8,358

Retirement schemes contribution

760

264

14,674

10,165

Fees and other emoluments in respect of independent non-executive directors for the year ended 30th June, 1998 amounted to HK$556,915 (1997: $435,162).

6. TAXATION

(a) Taxation in the profit and loss accounts represents:-

The group

The company

1998

1997

1998

1997

$000's

$000's

$000's

$000's

Estimated liability to Hong Kong profits tax at 16%

(1997: 16.5%) on the assessable profits of the year

1,164

1,361

1,206

(Over)/under provision in respect of previous year Share of taxation of associated companies

(45)

28

(45)

31

8,322

463,504

9,441

464,893

(45)

1,237

(b) The liability to taxation represents:-

Estimated liability to profits tax for the year

1,164

1,361

1,206

(Refund)/balance of profits tax provision relating to previous year

(303)

2

(335)

861

1,363

(335)

1,206

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