Cathay Pacific 1999 Annual Report Download - page 38

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Notes to the Accounts – Profit and Loss Account
42 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
5. Net finance charges
1999 1998
HK$M HK$M
Net interest charged on:
Obligations under finance leases 2,275 2,047
Interest income on related security deposits, notes and bonds (1,038) (933)
1,237 1,114
Bank loans and overdrafts 477 518
Interest income on related security deposits (275) (290)
202 228
Other loans and bonds
– wholly repayable within five years 23 40
23 40
Interest income on bank short-term deposits and loans (108) (256)
Other finance income (158) (245)
(266) (501)
1,196 881
Income from funds with investment managers (278) (570)
918 311
Finance income and expenses relating to defeasance arrangements have been netted off in the above figures.
6. Profit on sale of investments
The profit on sale of investments in 1999 represents the gain from the sale of an indirect interest of 0.4% in
Equant N.V., a company which provides an international communications network. The Group still maintains
an indirect interest of 0.6% in this company.
The net profit arising in 1998 from the sale of investments mainly related to the sale of a 4.5% shareholding
in a company operating a computerised reservation system business in Asia. The Company still maintains an
8.4% shareholding in this business.
7. Taxation
The taxation charge/(credit) comprises:
1999 1998
HK$M HK$M
The Company and its subsidiary companies:
Hong Kong profits tax 35
Overseas taxation 141 128
Deferred taxation (note 17) 158 (97)
Overprovision for prior years (98) (163)
204 (127)
Associated companies:
Hong Kong profits tax 14 22
Overseas taxation 11
219 (104)