EX-7.3 5 dex73.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES BASED ON HK GAAP Computation of Ratio of Earnings to Fixed Charges based on HK 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(1)
     2001    2002    2003    2004    2005

Profit before taxation

    4,295    4,098    5,473    7,673    10,012
                        

Fixed Charges:

               

Interest expenses

    1,870    1,748    1,636    1,470    1,447

Amortization of debt discount or deferred debt costs

    53    23    24    32    30

Representative portion of interest in operating lease expenses(2)

    5    4    4    3    3
                        

Total fixed charges (B)

    1,928    1,775    1,664    1,505    1,480

Less: fixed charges capitalized

    1,029    621    104    48    115
                        
   899    1,154    1,560    1,457    1,365
                        

Earnings before taxes and fixed charges (A)

    5,194    5,252    7,033    9,130    11,377
                        

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

    2.69    2.96    4.23    6.07    7.69
                        
(1) Due to the retrospective adoption of certain new HKFRS, restatement of the 2001, 2002, 2003 and 2004 financial data was necessary. See Note 3 of Notes to the Financial Statements.
(2) The balance represented one third of operating lease expenses of the Group.