1983 — Page 13

(f) Assets under construction

(i) Vessels

Construction cost is transferred to fixed assets on granting of the marine licence. (ii) Property

Land cost relating to property which is being developed for investment purpose is included in fixed assets under leasehold land.

Property development expenditure, inclusive of interest, is included as cost of development up to the date when the occupation permit is granted.

(g) Translation of foreign currencies

Foreign currency balances at the year end are translated into Hong Kong Dollars at approximately the market rates of exchange ruling at the balance sheet date except for balances where foreign exchange contracts have been undertaken, in which case the rates applicable to the contracts have been used for the translation. Foreign currency transactions during the year are translated into Hong Kong Dollars at the rates ruling at the transaction dates.

From 1983 all differences on foreign currency translation are dealt with in the profit and loss account except for where the foreign currency liabilities incurred can be clearly identified with a particular fixed asset. In such cases, the resultant exchange differences are included in the book value of the fixed asset.

In 1982, all exchange differences were dealt with in the profit and loss account except for unrealised differences on the translation of long term monetary items which were transferred to an equalisation account; realised differences and any deficit on the exchange equalisation account were dealt with in the profit and loss account.

The overall effect of the change has been to increase the current year's profit by HK$2,032,000.

The effect on the Group's prior years' profits is considered to be not material.

Turnover

Group turnover represents gross income from sales and for services provided to third parties which includes revenue from ferry operations, property income, general trading, shipbuilding and repairs.

2.

3.

Profit before Taxation

Group

Profit before taxation is arrived at after charging:

1983

1982

interest on

Bank loans and overdrafts

7,545

7,177

Loans repayable by instalments due within

five years

6,803

4,048

Other borrowings due within five years

2

14,348

11,227

Less: Capitalised

7,960

7,337

6,388

3,890

Provision for diminution in value of unquoted investment depreciation

432

20,199

20,549

auditors' remuneration

246

205

rent of government piers

2,987

1,274

-

computer rental

705

526

and after crediting:

net rental income

income from unquoted investment

18,163

16,698

348

121