1992 — Page 51

12. RESERVES

NOTES ON THE ACCOUNTS

1992

1991

HK$'000

HK$'000

Capital reserve

Balance at 1st January and 31st December

2,412

2,412

General reserve

Balance at 1st January and 31st December

Profit and loss account

17,601

17,601

636,050

563,891

656,063

583,904

13. CONTINGENCY PROVISION

INSURANCE

Balance at 1st January

Provision made during the year

Transfer to claims payable

Balance at 31st December

1992

1991

HK$'000

HK$'000

128,382

108,251

21,541

27,500

(9,886)

(7,369)

140,037

128,382

This provision, which was based on the advice of an independent actuary, represents amounts set aside annually by the Company to meet liabilities which may arise from third party claims in connection with the Company's bus operations and to cover potential losses which may be caused by fire damage to the fleet.

14. DEVELOPMENT FUND

1992

HK$'000

1991

HK$'000

Balance at 1st January

30,604

Transfer (to)/from profit and loss account

Amount in (deficit)/excess of permitted return Interest on development fund

(3,163)

29,427

2,322

1.177

(841)

30,604

Balance at 31st December

29,763

30,604

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