Cathay Pacific 2002 Annual Report Download - page 44

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Cathay Pacific Airways Limited Annual Report 2002 41
4. NET FINANCE CHARGES
2002 2001
Net interest charges HK$M HK$M
-
Obligations under finance leases 2,285 2,471
-
Interest income on related security deposits, notes and bonds (1,311) (1,410)
974 1,061
-
Bank loans and overdrafts 116 167
-
Interest income on related security deposits (11) (10)
105 157
-
Other loans and bonds wholly repayable within five years
-
4
-
Other loans not wholly repayable within five years 20 26
1,099 1,248
Income from liquid funds
-
Funds with investment managers (202) (393)
-
Bank deposits and investments (154) (284)
(356) (677)
743 571
Finance income and charges relating to defeasance arrangements have been netted off in the above figures.
5. PROFIT ON SALE OF INVESTMENTS
The profit on sale of investments in 2001 represented the gain from the disposal of the Group’s indirect interest
in Equant N.V. in exchange for an indirect interest in France Telecom S.A.
6. TAXATION
2002 2001
The taxation charge comprises: HK$M HK$M
The Company and its subsidiary companies
-
Hong Kong profits tax 58 38
-
Overseas taxation 202 133
-
Deferred taxation 34 45
-
Over provision for prior years (21) (49)
273 167
Associated companies
-
Hong Kong profits tax 40 22
-
Overseas taxation 15 13
328 202
Hong Kong profits tax is calculated at 16% (2001: 16%) on the estimated assessable profits for the year. Overseas
taxation is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax provisions
are reviewed regularly to take into account changes in legislation, practice and status of negotiations.
Notes to the Accounts
-
Profit and Loss Account