EX-7.3 4 dex73.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON HONG KONG GAAP Computation of Ratio of Earnings to Fixed Charges based on Hong Kong GAAP

Exhibit 7.3

 

MTR Corporation Limited

 

Computation of

Ratio of Earnings to Fixed Charges

Based on Hong Kong GAAP

(Expressed in millions of HK$)

 

     Year ended December 31
     2000
    2001
    2002
    2003
    2004

Profit before tax

    4,055    4,278    4,213    5,198    5,196
    
  
  
  
  

Fixed Charges:

                         

Interest expenses

    1,942    1,870    1,748    1,636    1,470

Amortization of debt discount or deferred debt costs

    46    53    23    24    32

Representative portion of interest in operating lease expenses(1)

    6    5    4    4    3
    
  
  
  
  

Total fixed charges (B)

    1,994    1,928    1,775    1,664    1,505

Less: fixed charges capitalized

    797    1,029    621    104    48
    
  
  
  
  
     1,197    899    1,154    1,560    1,457
    
  
  
  
  

Earnings before taxes and fixed charges (A)

    5,252    5,177    5,367    6,758    6,653
    
  
  
  
  

Ratio of Earnings to Fixed Charges (A)/(B)

    2.63    2.69    3.02    4.06    4.42
    
  
  
  
  
(1) The balance represented one third of operating lease expenses of the Group.