Cathay Pacific 2003 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2003 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

43
Notes to the Accounts – Profit and Loss Account
Cathay Pacific Airways Limited Annual Report 2003
4. NET FINANCE CHARGES
2003 2002
HK$M HK$M
Net interest charges comprise:
-
Obligations under finance leases 1,678 2,285
-
Interest income on related security deposits, notes and bonds (966) (1,311)
712 974
-
Bank loans and overdrafts 112 116
-
Interest income on related security deposits (4) (11)
108 105
-
Other loans wholly repayable within five years 3
-
-
Other loans not wholly repayable within five years 14 20
837 1,099
Income from liquid funds:
-
Funds with investment managers (106) (202)
-
Bank deposits and investments (111) (154)
(217) (356)
620 74 3
Finance income and charges relating to defeasance arrangements have been netted off in the above figures.
5. TAXATION
2003 2002
HK$M HK$M
The Company and its subsidiary companies:
Current tax expenses
-
Hong Kong profits tax 50 58
-
Overseas tax 248 202
-
Under/(over) provisions for prior years 84 (21)
Deferred tax
-
Origination and reversal of temporary differences (62) 34
-
Increase in tax rate 64
-
384 273
Associated companies:
-
Hong Kong profits tax 16 40
-
Overseas tax 915
409 328
In March 2003, the Hong Kong Government announced an increase in the profits tax rate applicable to the
operations in Hong Kong. Hong Kong profits tax is calculated at 17.5% (2002: 16%) on the estimated
assessable profits for the year. Overseas tax is calculated at rates of tax applicable in countries to which the
Group is assessable for tax. Tax provisions are reviewed regularly to take into account changes in legislation,
practice and status of negotiations.