1994 — Page 45

Report of the Directors

valuation were: Investment return and Salary Escalation at 8% per annum; Mortality Rates 1981 Hong Kong Life Tables; Normal Retirement Age 60; and Service Related

Withdrawal Rates.

iii. The market value of the scheme assets at 31 December 1994 was HK$922.5 million.

iv. The minimum level of funding as recommended by the actuary was 3.7% of pay.

V.

The on-going funding surplus in the scheme was HK$296 million and the solvency basis funding surplus was HK$448.7 million.

BANK LOANS AND OVERDRAFTS

Particulars of bank loans and overdrafts of the Company are set out in note 18 on the

accounts.

MAJOR CUSTOMERS AND SUPPLIERS

Income attributable to the five largest customers of the Company accounted for less than 30% of the total income of the Company for the year.

Purchases attributable to the five largest suppliers of the Company accounted for approximately 40% by value of the Company's total purchases for the year.

FINANCIAL SUMMARY

A summary of the results and of the assets and liabilities of the Company for the year ended 31 December 1994 and for the previous five financial years is set out on page 21.

AUDITORS

KPMG Peat Marwick retire and, being eligible, offer themselves for reappointment.

By Order of the Board

PC Woo

Chairman

Hong Kong, 13 April 1995

The Kowloon Motor Bus Company (1933) Limited

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