1996 — Page 140

5

The Permitted Return (continued)

Buses and

Leasehold

Other Motor

land

Buildings

Vehicles

Others

Total

HK$'m

HK$'m HK$'m

HK$'m

HK$'m

Net Book Value

At 31 December 1996

108.3

446.2

2,161.9

69.3 2,785.7

Add:

Amortisation on land

24.6

Buses under construction

24.6

536.7

536.7

Less:

Items not ranking for Control

Scheme purpose

Adjusted net book value of fixed assets

for Control Scheme purpose

(0.2)

(0.2)

132.9

446.2

2,698.4

69.3 3,346.8

Add: Other assets ranking as fixed assets under Control Scheme:

Deposits paid in respect of buses on order

Spare parts and stores

Insurance deposits with the Government

0.1

260.6

2.0

Net fixed assets for Control Scheme purpose at 31 December 1996

3,609.5

Net fixed assets for Control Scheme purpose at 31 December 1995

3,070.7

Average net fixed assets for Control Scheme purpose for the year ended 31 December 1996

3,340.1

Permitted Return for 1996 at 16% on average net fixed assets for Control Scheme purpose

Less: Concessions for senior citizens (Note)

534.4

(12.0)

Permitted Return for the year ended 31 December 1996 (net of concessions

for senior citizens)

522.4

Note: As a result of the implementation of concessionary fares to senior citizens in 1993, a sum of HK$12 million has been deducted

from the Permitted Return for the year.

67

Page 140Page 141