years 31st Dec.

2022 Reconciliation
Tax Expense(Income) (76.30) years
PBT
Current Tax - Govt. Grants
Deferred Tax (76.30)

Tax Income
Total

PBT (214)
Accounting Depreciation 80
Tax Depreciation (120)
Gain on Fair Value (20)
Development cost 20
Amortization (2)
Government Grants (4)
(260)

Deferred Tax Temp. Diff. Temp. Diff.

PPE 1,260.00 1,080.00 180.00
Investment 105.00 85.00 20.00
Development - 18.00 (18.00)
Govt. Grants - 8.00 -
Tax Losses - 260.00 (260.00)
Net Deductible Temp. Diff (78.00)
Deferred tax Assets(P&L) (76.30)
Deferred tax Liability(OCI) 49.00
Reconciliation
31st Dec. 2022
(214.00)
(4.00)
(218.00)

76.30
76.30
years 31st Dec. 2021 31st Dec. 2020
Tax Expense 35.42

Current Tax 25.97

Deferred Tax 9.45

PBT 105.00
Gain on investment property (10.00)
Tax Depreceiation on invetsment Property (5.00)
Exchange gain (16.00)
Tax amortization (10.00)
Finance charge on decimmissioning Provision 1.94
Accountiong Depreciation on Plant 28.27
Tax Depreciation on Plant (21.00)
Exempt dividend income (8.00)
Decrease in taxable diff. of other items 9.00
Taxable Profits 74.21
Current tax @ 35% 25.97

31st December, 2021

Carrying Amount Tax base Temp Diff
Investment Property 65.00 40.00 25.00
License 116.00 90.00 26.00
Plant 197.89 189.00 8.89
Equity Investment(OCI) 90.00 75.00 15.00
Decommissioning provisions 18.09 - (18.09)
Other taxable differnce 30.00
86.79
P&L 71.79
OCI 15.00
P&L
Closing Deferred tax Liability 25.13
Opening Deferred tax Liability (15.68)
Tax Expense 9.45
 Reconciliation
years 31st Dec. 2021
PBT
dividend income (8.00)
(8.00)
Tax Expense @ 35% (2.80)
Increase due to rate change 1.47
(1.33)

Decommissioning Cost P.V 16.16

Cost of Plant 210.00
Total Cost 226.16
Depreciation 28.27
Closing Decommissioning provision 18.09
Finance charge 1.94

31st December, 2021

Carrying Amount Tax base Temp Diff
55.00 45.00 10.00

39.00
49.00
years 31st Dec. 2019 31st Dec. 2018
Tax Expense (51.40)

Current Tax 17.20

Deferred Tax (68.60)

PBT (140.00)
Accounting Depreciation 470.00
Tax Depreciation (284.00)
Disposal of PPE 52.00
Prepiad Rent increase (5.00)
Impairment Loss 72.00
Dividend income (16.00)
Exchange loss 20.00
Research (39.00)
Tax Profits 130.00
Tax losses b/f (90.00)
Balance 40.00
Current Tax 14
Dividend income @ 20% 3.2
Total 17.20

Deferred Tax Temp. Diff. Temp. Diff.

PPE 254.00 584.00
Prepiad Rent 6.00 1.00
Research (25.00) (64.00)
Tax Losses - (90.00)
Taxable Temp. Diff 235.00 431.00
Deferred tax Liability 82.25 150.85
 Reconciliation
years 31st Dec. 2019 31st Dec. 2018
PBT (140.00)
Dividend Income (16.00)
(156.00)
Dividend income (3.20)
Normal 54.60
Total 51.40
years 31st Dec. 2018 31st Dec. 2017
Tax Expense 41.50 32.20

Current Tax 39.90 24.70

Deferred Tax 1.60 7.50

PBT 125.00 110.00

Accounting Depreciation 25.00 18.00
Tax Depreciation (21.00) (42.00)
Accrued rent (2.00) 3.00
Prepiad Insurance (1.00) (4.00)
Borrowing cost (2.00)
Interest income (10.00)
Tax Profits 114.00 85.00
Dividend income (8.00) 1.60
Normal rate 77.00 23.10
24.70

Deferred Tax Temp. Diff. Temp. Diff.

PPE 20.00 24.00
Prepiad Insurance 5.00 4.00
Accrued Rent (1.00) (3.00)
Cap. WIP 2.00
Taxable Temp. Diff 26.00 25.00
Deferred tax Liability 9.10 7.50
 Reconciliation
years 31st Dec. 2018 31st Dec. 2017
PBT 125.00 110.00
Interest income (10.00)
115.00
Dividend income (8.00) 1.60
Normal 40.25 102.00 30.60
Rate adjustment 1.25 32.20
41.50
Prior period tax adjustment
increase in opening DTL due to increase intax rate
Taxable diff. of 25m @ 35% 8.75
Taxable diff. of 25m @ 30% (7.50)
Tax Expense 1.25
 Provision for warranties
PBT 508.00 cash 38 b/f 49
Dep Effect 45.00 P&L 11
Gain Effect 15.00 cash 16 P&L 35
Amortization (9.00) c/d 19
Provision 24.00
warranty paid (54.00)
Restructuring Exp 17.50
Amortization (3.50)
Accruals 26.00
Donations 5.00
Commission (12.00)
Dividends (35.00)
Rent in advance 16.00
Taxable incomes 543.00
Current tax 162.9
Deferred Tax -19.6
Tax Exp. 143.3
Deferred Tax
PPE 34.5 DTL 2115 2000 115 34.5
Movement during the year -13.5 Decrease -145 -100
Adjustment for gain -4.5 Decrease 1970 1900 70 21
16.5 -70 -55
1900 1845 55 16.5

Trade marks 5.4 90 72 18 5.4

Movement during the year 2.7 Increase 0 -9
8.1 90 63 27 8.1

Waranties 14.7 DTA 49 0 49 14.7

Movement during the year -9 Decrease 19 0 19 5.7
5.7
Restructuring 0 0 0 0
Movement during the year 4.2 Increase 0 14 -14 -4.2
4.2 DTA

Accruals 0 0 0 0
Movement during the year 7.8 Increase 26 0 -26 -7.8
7.8 DTA
Dividend R/A 0 0 0 0
Movement during the year 3.5 Increase 35 0 35 3.5
3.5 DTL
Advance Rent 0 0 0 0
4.8 Increase 16 0 -16 -4.8
4.8 DTA
Closing Net DTL 5.6
Opening Net DTL 25.2
Decrease in DTL during the year -19.6
 Reconciliation
PBT 508
Donations 5
Commission -12
501 35 3.5
150.3 466 139.8
Dividend 3.5 143.3
Dividend -10.5
143.3

115 PPE 16.5

Trademarks 8.1
Warranties -5.7
Restructuring -4.2
Accruals -7.8
Dividend 3.5
Advance rent -4.8
Net Closing DTL 5.6
Net Openining DTL -25.2
-19.6
 Carrying Amount Tax Base Temp. Diff DTL closing DTL opening
- 12.00 (12.00) (3.60) -
Unearned Commision 10.00 10.00 - -
Other Payables 30.00 25.00 (5.00) (1.50) -
Dividend Receivale 8.00 8.00 - -
Other Receivables 9.00 6.00 3.00 0.90 -
Fixed Deposits 43.00 40.00 3.00 0.45 -
Right of use 48.82 - 48.82 14.64 73.22
Lease payables 53.45 - (53.45) (16.04) (76.60)
PPE 234.59 225.00 9.59 2.88 -
Proviosion 34.03 - (34.03) (10.21) -
Buildings 250.00 177.15 72.85 21.86 84.23
32.78 9.38 24.26

281.508481344155 46.91808
234.590401120129
400 100
60 65.61
340 85 65.61
250 60 60 177.147
-25 -5.61
P BT 700.00
Advertisment (15-3) 12.00
Provisions 5.00
Prepayments (3.00)
Dividend Receivale (8.00)
Interest (3.00)
Amortization of Right of use 24.41
Intersest on Lease payables 4.86
Lease payments (28.00)
Acc Dep. On Building 11.67
Acc. Loss on Building 25.00
Tax Dep. On Building (19.68)
Tax Loss on Building (5.61)
Intersest on Provision of PPE 2.52
Acc. Dep. on PPE 46.92
Tax Dep. on PPE (25.00)
Tax Profits 740.08
Current Tax 222.02
DTL Decrease (14.87)
Tax Expense for the year 207.15

Recociliation
PBT 700.00
Dividend (8.00) -
Interest (3.00) 0.45
689.00 206.70
Tax Expense for the year 207.15
 Description Rs. in million Date of payments Loan Balance
Advance to contractor 200 1-Aug-16 1,200.00 1,000.00
Construction permit fee 100 1-Aug-16 900.00
Suppliers of construction material 600 1-Sep-16 300.00
1st bill of contractor 500 1-Jan-17 (200.00)
2nd bill of contractor 200 1-Mar-17 (400.00)
Last bill of contractor 200 1-May-17

Capitalization Rate 13.14

Carrying Amount Tax Base
Cost of PPE 1,890.76 1,800.00 1/1/2017
Deprciation (47.27) (360.00) 1/1/2017
1,843.49 1,440.00 403.49 1/1/2017
1/1/2018
Right to use Asset 190.00 -
Amortization (23.75) -
166.25 - 166.25

Lease Libility 134.63 - (134.63)

435.11
130.53

PBT 500.00
Acc. Dep 47.27
Tax Dep (360.00)
Amortization 23.75
Finance cost 8.63
Lease Rent (54.00)
Direct Cost (10.00)
Investment income 14.00
Borrowing Cost (104.76)
Tax Profits 64.89
Current Tax 19.47

Tax Exp 150.00

 Months Invsetment income Borrowing cost
(96.00)
1.00 6.00
4.00 8.00
2.00 (4.38)
1.00 (4.38)
14.00 (104.76)

Principal Finance Charge Rent

PV 180.00
1st Rent (54.00) 54.00 - 54.00
Bal. 126.00
2nd Rent (36.74) 36.74 17.26 54.00
89.26
Sales 201,407 Cost
Cost of Ssales (88,164) b/f Add Disp c/f
G.P 113,243 290,000 35,000 (25,000) 300,000
Admin Exp (47,262)
Loss (1,250) Loss on Disp (1,250)
PBT 64,731
Tax Exp
Current (19,927)
Deferred 5,008
(14,919) Warranties
49,812 Exp 6,042 SOCI
Paid (2,500)
3,542
19,419 previos 10,000
4,500 paid (8,000)
15,000 gain 2,000 SOCI

508 Bad Debts

(19,419) c/f 11,084
b/f 5,000
19,419 Exp 6,084

Research 8,000
Development 12,000
Amortization 100
NBV 11,900
Imp 1,900
Acc. Dep Carrying Tax base
b/f Adj Exp c/f Amount
53,250 (3,750) 29,500 79,000 221,000 138,816 33,247
Dev 10,000 18,000
CWIP 145,000 137,500
Debtors 50,316 61,400
Prov
B.D -
Warranties 3,542 -
CGS
as per T.B 78,664 PBT 64,731
Dev (20,000) Dep Opening
Dep 29,500 Acc 29,500
88,164 Tax (33,247)
Bad Debt 6,084
Admin Exp Warranty
as per T.B 37,636 Acc 4,042
Bad Debt Exp 6,084 Tax (10,500)
Research 8,000 Research 8,000
Amortization 100 Amort 100
Imp 1,900 imp 1,900
Warranties Tax (2,000)
Exp 6,042 Finance Cost (7,500)
gain (2,000) Loss 1,250
previous (8,000) Tax gain 4,063
Current (2,500) 66,423
47,262
 82,184 25,000 21,250
(8,000) 6,250 (1,250)
7,500 18,750
(11,084) 2,813
15,938 20,000
- 153,000 4,063
(3,542) 137,063
67,058 116,503
20,117 35,000
25,125 26,250
(5,008) 22,313
138,816
20,625
(508) 236,750 153,000 83,750 25125
-15000
68,750
20625
Tax Expense for the year 26.24

Current Tax (W-1) 26.60

Deferred Tax (W-2) (0.36)
Tax Expense for the year 26.24

Recociliation
PBT 80.00
Capital gain (exempt from tax) (5.00)
penalty 1.00
76.00
Prior period Adj 6.00
82.00 26.24

W-1 Taxable Income

PBT 80.00
Provision for gratuity for the year 12.00
Bad debts expense for the year 10.00
Capital gain (exempt from tax) (5.00)
penalty 1.00
gratuity paid (10.00)
Acc Dep on Building 17.50
Tax Dep on Building (29.92)
Right of Use Amortization 24.00
Interest on Lease Payable 11.33
Lease payments (30.00)
Acc Gain on Disp. (8.50)
Tax Gain on Disp. 10.70
Taxable Income 83.11
Current Tax 26.60
Defrerred tax decrease (0.36)
Tax Expense for the year 26.24

Right of Use 120.00

 W-2
Closing Cost Acc. Dep
b/f Add Disp c/f b/f Adj Exp
Building 350.00 40.00 (30.00) 360.00 35.00 (3.50) 17.50
Warranty
Bad Debts
Right of Use
Lease Payable
Net Taxable Temp. Diff
Repair expenses
Net Closing DTL

Opening Cost Acc. Dep

b/f Add Disp c/f b/f Adj Exp
Building 350.00 350.00 17.50 17.50
Warranty
Bad Debts
Net Taxable Temp. Diff
Repair expenses
Entertainment expenses
Net Opening DTL
Movement during the year
. Dep Carrying Tax base
c/f Amount
49.00 311.00 269.28 41.72
15.00 - (15.00)
12.00 - (12.00)
96.00 - 96.00
101.33 - (101.33)
9.39 3.00
8.00 - (8.00) (2.56)
1.39 0.44

. Dep Carrying Tax base

c/f Amount
35.00 315.00 283.50 31.50
13.00 (13.00)
2.00 (2.00)
16.50 5.28
8.00 (8.00) (2.56)
6.00 (6.00) (1.92)
2.50 0.80
(0.36)
ZTL
Sales 76,000
Cost of sales (29,160)
GP 46,840
Other incomes 5,390
Selling and distribution Exp. (11,120)
Admin Exp. (11,200)
Finance chrges (8,698)
PBT 21,212
Tax Exp. (6,364)
PAT 14,848

Current Tax
PBT 21,212
Bad Debts Exp. 120
Actual Bad Debts (50)
Lease Dep 3,750
Finance Charges 1,498
Lease Rent (5,000)
Diff Accounting and Tax Dep (3,000)
Taxable income 18,530
Dividend Income 900 90
Remaining 17,630 5,994
Total 6,084
Prior year Adjustment (544)
Tax payable 5,540
Deferred Tax
Inventory (88)
Lease (84)
Owned Assets 1,020
Receivables (24) 823
Tax Exp. 6,364
Inventory 6,740

Provsion Receiveables
b/d 430 8,170 8,600
Bad Debts (50) 9,500 10,000
P&L 120
c/d 500

Other income 5,300

wrong dividend (810)
Correct 900
5,390

Lease Obligation 6,890

Finance charges 1,498
8,388

opening 11,890
decrease in deductable diff (3,502)
decrease in Taxable diff 3,750
248
Tax Exp. For thr Year
Current Tax @ 35% (W-1)
Deferred Tax (W-2)
Tax Exp. For the Year

Recociliation
PBT 11.00
Exp not allowed during the year 0.40
Prior Exp not allowed 3.00
exempt income (2.00)
12.40
Tax Exp @ 35% 4.34
W-1
2012
PBT 11.00
Add Accounting Dep. 30.00
Add Exp not allowed 0.90
Less Tax Dep (25.60)
Less Capital Gain (2.00)
Add Prior year exp.
Less Tax Losses
Taxable Losses
Current Tax @ 35%
W-2
Taxable Temp Diff
Fixed Assets
Exp to be allowed in 2015
Taxable Losses to c/f W-1
Closing Temp Diff
Deferred Tax Asset c/f
Less Deferred Tax Asset b/f
Net Movement during the year
 2012
-
4.34
4.34

14.30
3.00
(21.00)
(3.70)
-

Deductible Temp Diff

12.40
0.50
3.70
16.60
5.81
(10.15)
(4.34)
 Extract of Stement of Financial Position
30th June 2012
Non Current Assets
PPE 44.00
DTA

Non Current Liabilities

DTL 1.20

Notes to the Accounts

PPE
Opening 1st July 72.00
RR 8.00
Rev Loss 8.00
Dep Exp for the year (44.00)
Closing 30th June 44.00

AIL Uses the Revaluation Model for its PPE

Revaluation has been been performrd Annually
Dep. Rate is 20% and method is Straight Line
Revaluation is Performed by Supreem Valuation Service,an independent firm of valuers

Deferred Tax
DTA
DTL 1.20
Recociliation
1st July 2010 (DTL)
1st July 2011 (DTA) 2.40
1st July Reversal of DTL to RR
1st july Reversal of DTA in P&L (2.40)
DTL because of RR 2.40
30th June 2012 Decrease of DTL in P& L (1.20)
30th June 2011 (DTA)
30th June 2012 Decrease of DTL in P& L 1.20
n Work
30th June 2011 30-Jun-09
PPE
72.00 Cost/Revaluation Opening 200
2.40 Revaluation Reserve
Revaluation Loss
Dep Exp for the year 40
Carrying Amount as at 30th June 160
Tax Base 160
Temp. Diff Taxable (Deductible) 0
Closing DTL (DTA) -
135.00
(15.00) Movement in Deferred Tax
(12.00) Closed in RR (OCI)
(36.00) Closed in Tex Exp.( P&L)
72.00

nt firm of valuers

2.40

4.50

(4.50)

2.40
 Working
1-Jul-09 30-Jun-10 1-Jul-10 30-Jun-11 1-Jul-11 30-Jun-12

160 180 135 108 72 88

20 (15) 8
(12) 8
45 36 44
180 135 108 72 88 44
120 80 40
15 (8) 4
4.50 (2.40) 1.20

6.00 (4.50) 2.40

(1.50) (2.40) 2.40 (1.20)
 Date Particulars Amount Dr. Million Amount Cr. Million
1-Jul-08 PPE 200
To Bank 200
30-Jun-09 Dep 40
To Acc. Dep 40
1-Jul-09 Acc. Dep 40
To PPE 40
1-Jul-09 PPE 20
To DTL 6
To RR 14
30-Jun-10 Dep 45
To Acc. Dep 45
30-Jun-10 RR 3.5
To RE 3.5
30-Jun-10 DTL 1.5
To Tax Exp. 1.5
1-Jul-10 Acc. Dep 45
To PPE 45
1-Jul-10 DTL 4.5
RR 4.5
1-Jul-10 RR 15
Rev. Loss 12
To PPE 27
30-Jun-11 Dep 36
To Acc. Dep 36
30-Jun-11 DTA 2.4
To Tax Exp. 2.4
1-Jul-11 Acc. Dep 36
To PPE 36
1-Jul-11 PPE 16
To Reversal of Rev. Loss 8
To RR 8
1-Jul-11 Tex Exp 2.4
To DTA 2.4
1-Jul-11 RR 2.4
To DTL 2.4
30-Jun-12 Dep 44
To Acc. Dep 44
30-Jun-12 DTL 1.2
To Tax Exp. 1.2
30-Jun-12 RR 2.8
To RE 2.8
Tax Exp. For thr Year 2011 2010
Current Tax @ 35% (W-1) 20.475 10.7625
Deferred Tax (W-2) (1.575) (21.3500)
18.900 (10.5875)

Recociliation
PBT 60.00
Exempt Capital Gains (6.00)
Net 54.00
Tax Exp 18.90
W-1
2011 2010
PBT 60.0000 45.0000
Add Accounting Dep. 10.0000 9.0000
Less Tax Dep (8.0000) (7.0000)
Less Accountin Profit on Disp. (0.5000)
Add Tax Profit on Disp 1.0000
Less Capital Gain (6.0000)
Add Bad Debts Exp. 5.0000 7.0000
Less Actual Bad Debts (3.0000) (4.0000)
Less Tax Losses (19.2500)
Taxable Profit 58.5000 30.7500
Current Tax @ 35% 20.4750 10.7625

W-2
31st Dec. 20 31st Dec. 2010
Net Closing (4.025) (2.45)
Opening 2.450 (18.90)
Net Movement (1.575) (21.35)

Defered Tax NBV TB Taxable Temp. Diff.

PPE
1st Jan 2011 95.00 90.000 5.000
Disposal Carrying Amount (2.50) (2.000)
Dep (10.00) (8.000)
31st Dec. 2011 82.50 80.000 2.50
Provision for Bad Debts Deductible Temp. Diff
1st Jan 2011 12.00 - 12.000
Bad Debts Exp. 5.00
Actual Bad Debts (3.00)
31st Dec. 2011 14.00 0 14.00
Temp. Diff
 Date Particulars Amount Dr. Rs. Amount CR. Rs.
30-Jun-07 Tax Exp 3,600,000
To DTL 3,600,000
30-Jun-08 Revaluation Loss 8,000,000
To PPE 8,000,000
30-Jun-08 DTL 1,040,000
To Tax Exp 1,040,000
30-Jun-09 Tax Exp 1,408,000
To DTL 1,408,000
30-Jun-10 PPE 12,000,000
To Revaluation Loss 6,000,000
To Revaluation Res. 6,000,000
30-Jun-10 Revaluation Res. 2,400,000
To DTL 2,400,000
30-Jun-10 Tax Exp 2,886,400
To DTL 2,886,400
30-Jun-11 DTL 1,050,880
To Tax Exp 1,050,880
30-Jun-11 RR 400,000
To RE 400,000

Notes to the Accounts

Years 2011 2010
Current Tax @ 40% W-1 33,050,880 21,113,600
Deferred Tax W-2 (1,050,880) 2,886,400
Tax Expense 32,000,000 24,000,000

Reconciliation
PBT 80,000,000 60,000,000
Tax Exp @ 40% 32,000,000 24,000,000

W-1
PBT 80,000,000 60,000,000
Add Accounting Dep. 10,000,000 8,000,000
Less Tax Dep. (7,372,800) (9,216,000)
Add Reversal of revaluation Loss (6,000,000)
Taxable Profit 82,627,200 52,784,000

W-2
NBV TB Taxable Temp Diff
1-Jul-06 90,000,000 90,000,000 -
30-Jun-07 81,000,000 72,000,000 9,000,000
30-Jun-08 64,000,000 57,600,000 6,400,000
30-Jun-09 56,000,000 46,080,000 9,920,000
30-Jun-10 60,000,000 36,864,000 23,136,000
30-Jun-11 50,000,000 29,491,200 20,508,800
Net Movement for the Year Def tax on Net Mov. Tax Exp Revaluation Reserve
 9,000,000 3,600,000 3,600,000
(2,600,000) (1,040,000) (1,040,000)
3,520,000 1,408,000 1,408,000
13,216,000 5,286,400 2,886,400 2,400,000
(2,627,200) (1,050,880) (1,050,880)
1-Jul-06 PPE 90,000,000
To Cash 90,000,000
30-Jun-07 Dep. 9,000,000
To Acc. Dep 9,000,000
30-Jun-07 Tax Exp 3,600,000
To DTL 3,600,000
30-Jun-08 Dep. 9,000,000
To Acc. Dep 9,000,000
30-Jun-08 Acc Dep 18,000,000
To PPE 18,000,000
30-Jun-08 Revaluation Loss 8,000,000
To PPE 8,000,000
30-Jun-08 DTL 1,040,000
To Tax Exp 1,040,000
30-Jun-09 Dep. 8,000,000
To Acc. Dep 8,000,000
30-Jun-09 Tax Exp 1,408,000
To DTL 1,408,000
30-Jun-10 Dep. 8,000,000
To Acc. Dep 8,000,000
30-Jun-10 Acc Dep 16,000,000
To PPE 16,000,000
30-Jun-10 PPE 12,000,000
To Revaluation Loss 6,000,000
To Revaluation Res. 6,000,000
30-Jun-10 Revaluation Res. 2,400,000
To DTL 2,400,000
30-Jun-10 Tax Exp 2,886,400
To DTL 2,886,400
30-Jun-11 Dep. 10,000,000
To Acc. Dep 10,000,000
30-Jun-11 DTL 1,050,880
To Tax Exp 1,050,880
 Tax Expense
Years 2010 2009
Current Tax @ 35% W-1 0.84 -
Deferred Tax W-2 6.95 (0.96)
7.79 (0.96)

Reconciliation
PBT 23.50 (1.75)
Less Exempt Income (1.25) (1.00)
Net 22.25 (2.75)
Tax @ 35% 7.79 (0.96)

Current Tax W-1

2010 2009
PBT 23.50 (1.75)
Add Accounting Dep. 15.00 15.00
Less Tax Dep. (6.00) (45.00)
Add Accrude Expense (2.00) 2.00
Less Exempt Income (1.25) (1.00)
Add Gratuity Expense 2.20 1.70
Less Tax Loss (29.05)
Taxable Profit (Loss) 2.40 (29.05)
Current Tax @ 35% 0.84 -

Deferred Tax W-2

PPE Taxable Diff 21.00 30.00
Gratuity Prov (Deductible) (3.90) (1.70)
Accrued Expenses (2.00)
Tax Loss (deductibel) (29.05)
Taxable (Deductible) Temp. Diff. 17.10 (2.75)
Closing Deferred Tax 5.99 -
Net Movement for the Year 6.95 (0.96)
 Calculation of taxable income Amount (m) Deferred Tax
PBT 50.00 PPE
Add Accounting Dep. 10.00 Leased Liability
Accounting R&D Exp. 1.00 R&D
Finance Charges on finance Lease 0.068 Prior Exp
Less Tax Depreciation (7.00) Net Movement
Lease Rent (0.30)
Tax R&D Exp (1.35)
Prior Exp (0.15)
Taxable income 52.27

Reconciliation
Current Tax 18.29 PBT
Deffered Tax (0.72) R&D
Tax Expense 17.57 Prior exp
Total
Tax Exp
Deferred Tax R&D Working
(3.000) NBV TB Diff NBV TB
0.232 During 2007 13.5 13.5 1.5 1.5
0.450 31-12-2007 12.6 12.15 0.45 1.4 1.4
0.250 31-12-2008 11.7 10.8 0.9 1.3 1.3
(2.068) 31-12-2009 10.8 9.45 1.35 1.2 1.2

Leased Liability
Principal Fin. Charge Rent
Reconciliation 1-Jan-14 P.V 1.00
50 01-Jan-14 1st Rent (0.30) 0.30 0.30
0.1 01-Jan-14 Bal 0.70
0.1 31-12-2014 Interest 0.096 0.096
50.2 31-12-2014 Bal 0.796
17.57 1-Jan-15 2nd Rent (0.300) 0.30
1-Jan-15 Bal 0.496
31-12-2015 Interest 0.068 0.068
31-12-2015 Bal 0.564
(0.232) Net movement
Net movement

0.45
0.45
0.45
Jamshed Limited has recently hired your services for the position of Accountant. The following summarized trial balance for
the year ended December 31, 2008 along with the CFO’s comments, has been provided to you: Amounts in Rs.
Debit Credit
Share capital 75,000,000
Retained earnings (1/1/2008) 54,134,997
Obligation under finance leases 15,436,900
Accounts payable 4,100,000
Owned fixed assets – net 110,187,500
Leased fixed assets – net 17,152,115
Deferred tax asset (1/1/ 2008) 750,000
Stock in trade 31,400,250
Accounts receivable 13,075,000
Provision for bad debts 653,750
Advance tax paid 11,999,247
Cash and bank 1,025,000
Sales 177,633,594
Cost of sales excluding depreciation 122,106,875
Depreciation expense – owned assets 9,385,542
Depreciation expense – leased assets 1,815,212
Donations 562,500
Financial charges 2,237,500
Other expenses 6,150,000
Dividend income 512,500
Gain on sale of machines 375,000
327,846,741 327,846,741
Following relevant information is also available:
(i) Bad debts written off during the year amounted to Rs. 200,000.
(ii) There was no addition or deletion in the leased assets. The principal repayment towards oblig. under finance lease was Rs.
(iii) The tax written down value of owned fixed assets as of December 31, 2007 was Rs. 96,550,000.
(iv) During the year, the company purchased fixed assets amounting to Rs. 7,500,000.
(v) The tax written down value of machines sold was Rs. 450,000. There was no other disposal of PPE in the year 2008.
(vi) On account of an apparent mistake in the return relating to year ended December 31, 2007, a revised return was filed and
taxable income was reduced by Rs. 1,800,000.
(vii) Up to the year ended December 31, 2007, the company’s assessed brought forward losses amounted to Rs. 14,251,700.
(viii) Applicable tax rate is 35%.
Required
Prepare a note to the SCI for the year ended December 31, 2008, giving appropriate disclosure related to current and deferred
Accountant. The following summarized trial balance for
has been provided to you: Amounts in Rs.

Including tax of Rs. 51,250 deducted on dividend received.

Tax depreciation for the year is Rs. 8,501,758.

Not allowable for tax purposes.

Includes Rs. 1,750,222 relating to obligations under finance lease.
Includes bad debt expenses of Rs. 853,750.
Taxable under Final Tax Regime.
Carrying amount at disposal was Rs. 650,000.

pal repayment towards oblig. under finance lease was Rs. 2,061,359.
r 31, 2007 was Rs. 96,550,000.
to Rs. 7,500,000.
ere was no other disposal of PPE in the year 2008.
ended December 31, 2007, a revised return was filed and the

ed brought forward losses amounted to Rs. 14,251,700.

ng appropriate disclosure related to current and deferred tax expenses. (23)

Inventory 6740 7000 260 88.4 18530
R/A 9500 10000 -1600
-900
10000 3400 16030 5450.2
-3750 900 90
6250 2125 5540.2
1275 912
6452.2
11890 4042.6
1498.14 8388.14 2851.968
1190.632
84.3676
5248.14 84.3676
1020
23.8
911.8324
823.4324
16290 5538.6
90
5628.6
6452.032