Exhibit 7.3
MTR Corporation Limited
Computation of
Ratio of Earnings to Fixed Charges
Based on Hong Kong GAAP
(Expressed in millions of HK$)
As of December 31 | ||||||||||||
1998 | 1999 | 2000 | 2001(1) | 2002 | ||||||||
Profit before tax | 2,819 | 2,116 | 4,055 | 4,278 | 4,213 | |||||||
Fixed Charges: | ||||||||||||
Interest expenses | 1,123 | 1,680 | 1,942 | 1,870 | 1,748 | |||||||
Amortization of debt discount or deferred debt costs | 26 | 32 | 46 | 53 | 23 | |||||||
Representative portion of interest in operating lease expenses(2) | 23 | 13 | 6 | 5 | 4 | |||||||
Total fixed charges | (B) | 1,172 | 1,725 | 1,994 | 1,928 | 1,775 | ||||||
Less: fixed charges capitalized | 473 | 383 | 797 | 1,029 | 621 | |||||||
699 | 1,342 | 1,197 | 899 | 1,154 | ||||||||
Earnings before taxes and fixed charges | (A) | 3,518 | 3,458 | 5,252 | 5,177 | 5,367 | ||||||
Ratio of Earnings to Fixed Charges | (A)/(B) | 3.00 | 2.00 | 2.63 | 2.69 | 3.02 | ||||||
(1) | Due to the adoption of SSAP 34, “Employee Benefits”, issued by the Hong Kong Society of Accountants, which became effective on January 1, 2002, a restatement of the 2001 financial data was necessary. See Note 42A of Notes to the Financial Statements. |
(2) | The balance represented one third of operating lease expenses of the Group. |