1
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Status
of The Electrical and Mechanical Services Trading Fund
The Electrical and Mechanical Services Trading Fund was established
on 1 August 1996 under the Legislative Council Resolution passed
on 26 June 1996 pursuant to sections 3, 4 and 6 of the Trading Funds
Ordinance (Cap. 430) to provide comprehensive electrical, mechanical
and electronic services, vehicle services, and project and consultancy
services to clients. With effect from 1 August 1999, government
bureaux, departments and autonomous bodies (user departments) can
be untied from using services provided by the Electrical and Mechanical
Services Trading Fund in four phases over a three-year period. Upon
untying, user departments are free to retain the services of the
Electrical and Mechanical Services Trading Fund or to choose alternative
service providers to meet part or all of their electrical and mechanical
service needs.
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2
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| Accounting
Policies |
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| (a) |
Basis
of accounting
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The
accounts have been prepared in accordance with accounting
principles generally accepted in Hong Kong. |
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| (b) |
Fixed
assets |
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Fixed
assets appropriated to the Electrical and Mechanical Services
Trading Fund on 1 August 1996 are stated at the value
contained in the Legislative Council Resolution for the
setting up of the Electrical and Mechanical Services Trading
Fund. Fixed assets acquired since 1 August 1996 and costing
more than $100,000 on an individual basis are capitalised
at the actual direct expenditure of acquisition and installation
with the exception of motor vehicles which are treated
as fixed assets regardless of value. |
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| (c) |
Depreciation
and amortisation
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Depreciation
is provided on a straight-line basis calculated to write
off the cost of assets less residual value over their
estimated useful lives. The annual rates of depreciation
used are :
| Buildings |
5%
- 10% |
| Computer
systems and equipment |
20%
- 25% |
| Plant
and equipment |
14% |
| Motor
vehicles |
20% |
| Furniture
and fixtures |
20% |
Land is regarded as a non-depreciating asset. |
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| (d) |
Deferred
tax |
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Provision
is made for deferred tax in respect of all material timing
differences attributable to accelerated depreciation allowances
on fixed assets except where it is considered that no
liability will crystallize in the foreseeable future. |
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| (e) |
Revenue
recognition |
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Revenue
is recognised as services are provided. Interest income
is recognised on an accrual basis. |
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| (f) |
Stocks
and work in progress |
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Stocks
and work in progress are stated at the lower of cost and
net realisable value. Work in progress represents jobs
in progress as at year end date. |
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| (g) |
Related
parties
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The
Electrical and Mechanical Services Trading Fund is a separate
accounting entity within the Government of the Hong Kong
Special Administrative Region (the Government) established
under the Trading Funds Ordinance (Cap. 430). During the
year, the Electrical and Mechanical Services Trading Fund
has entered into transactions with various related parties,
including Government bureaux and departments, trading
funds and financially autonomous bodies controlled or
significantly influenced by the Government, in the ordinary
course of its business. |
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3
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| Turnover |
|
2000
HK$000 |
1999
HK$000 |
|
Vehicle
services
Electrical, mechanical and electronic services
Project and consultancy services
Others |
277,624
2,512,440
243,596
26,578 |
326,219
2,343,874
216,655
26,429 |
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3,060,238 |
2,913,177 |
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4
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Operating
Costs
|
2000
HK$000 |
1999
HK$000 |
|
Staff
costs
Materials
Contract maintenance
Rental and management charges
General operating and administration expenses
Depreciation and amortisation
Audit fees |
1,639,166
268,906
555,499
28,379
189,697
30,752
487 |
1,579,931
275,051
470,255
26,863
198,180
27,903
509 |
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2,712,886 |
2,578,692 |
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5
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Other
Income
|
2000
HK$000 |
1999
HK$000 |
|
| Bank
deposits interest |
59,919 |
63,199 |
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6
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Finance
Cost
|
2000
HK$000 |
1999
HK$000 |
|
Interest
on
Government loan repaid and repayable within one year
Government loan repayable after one year |
3,199
15,405 |
3,661
20,341 |
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7
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Taxation
Notional profits tax is provided at the rate of 16% (1999 : 16%).
A payment in lieu of profits tax calculated on the basis of the
provisions of the Inland Revenue Ordinance (Cap. 112) will be made
to the Government. Provision is made for deferred tax in respect
of all material timing differences attributable to accelerated
depreciation allowances on fixed assets except where it is considered
that no liability will crystallize in the foreseeable future.
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|
2000
HK$000 |
1999
HK$000 |
|
Notional
profits tax
Profits tax rebate
Deferred tax for the year
|
49,494
-
3,122 |
56,369
(5,559)
(4,752) |
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| Taxation
for the year |
52,616 |
46,058 |
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