1996 — Page 115

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 as at 31 December 1994.

Bank loans and overdrafts

Particulars of bank loans and overdrafts of the Company and the Group are set out in Note 18 on the accounts.

Major customers and suppliers

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

Purchases attributable to the five largest suppliers of the Group accounted for less than 30% by value of the Group's total purchases for the year.

At no time during the year, have the Directors, their associates or any Shareholder of the Company (which to the knowledge of the Directors owns more than 5% of the Company's share capital) any interests (as defined in the Listing Rules) in these major customers and suppliers.

Financial summary

A summary of the results and of the assets and liabilities of the Group for the two years ended 31 December 1996 and 1995 and for the previous four financial years of the Company is set out on page 23.

Compliance with the Code of Best Practice

The Company has complied throughout the year with the Code of Best Practice as set out by the Stock Exchange of Hong Kong Limited in Appendix 14 to the Listing Rules.

Auditors

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

By Order of the Board

PC Woo

Chairman

Hong Kong, 10 April 1997

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