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Accounting Policies of Lime Chemicals Ltd. Company

Mar 31, 2014

A Basis of Preparation of Financial Statements

The accounts have been prepared on the accrual basis of accounting, under historical cost convention and in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006 and the provisions of Companies Act, 1956, except where otherwise stated. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

B Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

C Fixed Assets (Tangible) and Depreciation

Fixed Assets are carried on at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost comprise purchase price, all direct expenses relating to the acquisition and installation and any attributable cost (net of Modvat/Cenvat) of bringing the asset to its working condition for the intended use. Depreciation has been provided on straight line method of depreciation at the rates prescribed under Schedule XIV to the Companies Act, 1956. Assets costing less than Rs. 5,000/- each are fully depreciated in the year of capitalisation. Depreciation in respect of assets acquired / purchased during the year has been provided on pro rata basis according to the period such asset was put to use.

D Fixed Assets (Intangible) and Amortization

Intangible Assets are stated at cost of acquisition less accumulated amortization. Intangible Assets are amortized over a period of 5 years on straight line basis.

E Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

G Investments

Investments intended to be held for more than one year are classified as non-current investments and are carried at cost of acquisition inclusive of other attributable expenses. Diminution in the value of such investments is written off / provided for, as the case may be if such diminution is of other than temporary nature. Current Investments are carried at lower of cost or net realizable value.

H Inventories

Inventories are valued at cost (FIFO) or net realizable value whichever is less. Cost comprises all cost of purchase, cost of conversion, and cost incurred to bring inventories to present location and condition. Finished goods valuation include appropriate proportion of overheads and, where applicable, excise duty.

I Revenue Recognisition

Revenue is recognised to the extent that it can be reliable, measured and is appropriate to the economic benefits that will flow to the company. Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Export benefits are accounted when realized / received. Dividend income is recognized when right to receive is established.

J Employee Benefits

The Company''s contribution to Provident fund is charged to the Statement of Profit and Loss. The Gratuity and Leave Encashment liability, which are defined benefit plans, are provided on the basis of actuarial valuation as on balance sheet date and same are unfunded.

K Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

L Leases

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment. Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year. Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

M Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

N Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

O Provision for Taxation

Provision for taxation is made for the income tax liability as per the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences being the differences between the taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent period, at the current rate of tax. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

P Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A) Basis of preparation of fnancial statements:

The fnancial statements have been prepared on the basis of historical cost convention in accordance with generally accepted accounting principles and comply with the accounting standard issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956, adopted consistently by the Company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except for insignifcant value.

b) Use of Estimates:

The presentation of fnancial statements is in conformity with the generally accepted accounting principles requiring estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known /materialized.

c) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction including attributable interest and fnancial cost till the date of acquisition /installation of the Assets and improvement thereon (net of Modvat / Cenvat.) less accumulated depreciation.

d) Intangible Assets:

Intangible Assets are stated at cost of acquisition less accumulated amortization. Computer Software is amortized over a period of 5 years on straight line basis.

e) Investments:

Investments intended to be held for more than one year are classifed as long term investments and are carried at cost of acquisition inclusive of other attributable expenses. Diminution in the value of such investments is written off / provided for, as the case may be if such diminution is of other than temporary nature. Current Investments are carried at lower of cost or net realizable value.

f) Inventories:

Inventories are valued at cost or net realizable value whichever is less. Cost is determined by using the FIFO formula. By-products are valued at net realizable value. Cost comprises all cost of purchase, cost of conversion, and cost incurred to bring inventories to present location and condition. Finished goods are valued based on work certifed.

g) Provisions, Contingent Liabilities and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using substantial degree of estimation, if

a. The Company has a present obligation as a result of past event.

b. A probable outfow of resources is expected to settle the obligation, and

c. The amount of the obligation can be reliably estimated.

Reimbursement expected in respect of the expenditure required to settle a provision is recognized only when it is virtually certain that reimbursement will be received.

Contingent Liability is disclosed in the case of:

a) A present obligation arises from past events, when it is not probable that an outfow of resources will be required to settle the obligation,

b) A present obligation when no reliable estimate is possible, and

c) A possible obligation arising from past events where the probability of outfow of resources is not remote.

Contingent Assets are neither recognized, nor disclosed. Provision, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

h) Sales / Turnover:

Sales / Turnover (Gross) includes Central excise duty but excludes transport, octroi and sales tax etc. Inter divisional transfers and branch transfers are treated as sales when actual sales take place on delivery of goods to customers. Excise Duty on sales is shown as a deduction from sales.

i) Revenue Recognition:

In appropriate circumstances, revenue (income) is recognized when no signifcant uncertainty as to measurability or collectability exists.

Export benefts are accounted when realized / received.

Dividend income is recognized when right to receive is established.

j) Retirement Benefts:

a. The Company''s contribution to Provident fund is charged to the Proft and Loss Account

b. Leave encashment beneft at the time of retirement/cessation of service as calculated which is a defned beneft plan, is provided on the basis of actuarial valuation as on balance sheet date and same is unfunded is charged to the Proft and Loss Account. Till Financial year 2010-11, the Leave encashment provision was made in the books of Accounts and it was the practice of the company to account for the same on Cash basis.

c. The Gratuity liability, which is a defned beneft plan, is provided on the basis of actuarial valuation as on balance sheet date and same is unfunded.

k) Depreciation:

1. At Roha factory:- (a) Depreciation in respect of fxed assets installed on or before 30.6.1982 has beenprovided on written down value

basis as per the provisions of Section 205(2) (a)of the Companies Act, 1956 at the rates specifed in schedule XIV of the Companies Act,1956.

(b) Depreciation in respect of assets acquired after 30.6.1982 has been provided asunder:

(i) On plant and machinery on straight line basis as per provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates specifed in Schedule XIV of the Companies Act,1956.

(ii) On other assets acquired during 1.7.1982 to 30.6.1986 on written down value basis as per the provisions of Section 205(2)(a) of the Companies Act, 1956 at the rates specifed in schedule XIV of the Companies Act,1956.

(iii) On other assets acquired since 1.7.1986 on straight line basis as per note (i) above.

(c) Depreciation in respect of assets acquired / purchased during the year has been provided on pro rata basis according to the period such asset was put to use.

2. At Paonta factory:- Depreciation has been provided under ‘Straight Line Method'' as per rates specifed in schedule XIV to the Companies Act, 1956.

3. Leasehold land taken over on amalgamation is amortized over the balance periodof lease.

l) Foreign Currency Transactions:

Foreign currency transactions are recorded at original rate of exchange in force at the time of occurrence of transactions. Exchange difference on settlement / translation of monetary assets and liabilities at closing rates are recognized in Proft and Loss account, except in case where they relate to acquisition of non-monetary assets in which case they are adjusted in carrying cost of such assets.

m) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

n) Leases:

The assets taken on lease prior to April 1, 2001 have been accounted as per the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of India, in1995.Assets taken as fnance lease on or after 1st April''2001, is capitalized as fxed assets at lower of fair value of the assets and present value of minimum lease rentals. The principal components in the lease rental are adjusted against the lease liability and the interest components are charged to proft and loss account.

o) Earnings per share:

The Company reports basic earnings per share in accordance with the Accounting Standard 20 ‘Earnings per share'' issued by the Institute of Chartered Accountants of India. Basic earnings per share is computed by dividing the net proft or loss attributable to the equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.

p) Taxes on Income:

Current tax is determined as the tax payable in respect of taxable income of the year, in accordance with the provisions of The Income Tax Act, 1961.

Deferred Tax for the year is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of its realization.


Mar 31, 2011

A) Basis of preparation of financial statements:

The financial statements have been prepared on the basis of historical cost convention in accordance with generally accepted accounting principles and comply with the accounting standard issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956, adopted consistently by the Company.The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except for insignificant value.

b) Use of Estimates :

The presentation of financial statements is in conformity with the generally accepted accounting principles requiring estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference

between the actual result and estimates are recognized in the period in which the results are known / materialized.

c) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction including attributable interest and financial cost till the date of acquisition /installation of the Assets and improvement thereon (net of Modvat / Cenvat.) less accumulated depreciation.

d) Intangible Assets:

Intangible Assets are stated at cost of acquisition less accumulated amortization. Computer Software is amortized over a period of 5 years on straight line basis.

e) Investments:

Investments intended to be held for more than one year are classified as long term investments and are carried at cost of acquisition inclusive of other attributable expenses. Diminution in the value of such investments is written off / provided for, as the case may be if such diminution is of other than temporary nature. Current Investments are carried at lower of cost or net realizable value.

f) Inventories:

Inventories are valued at cost or net realizable value whichever is less. Cost is determined by using the FIFO formula. By-products are valued at net realizable value. Cost comprises all cost of purchase, cost of conversion, and cost incurred to bring inventories to present location and condition. Finished goods are valued based on work certified.

g) Provisions, Contingent Liabilities and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using substantial degree of estimation, if

a. The Company has a present obligation as a result of past event.

b. A probable outflow of resources is expected to settle the obligation, and

c. The amount of the obligation can be reliably estimated.

Reimbursement expected in respect of the expenditure required to settle a provision is recognized only when it is virtually certain that reimbursement will be received.

Contingent Liability is disclosed in the case of:

a. A present obligation arises from past events, when it is not probable that an outflow of resources will be required to settle the obligation,

b. A present obligation when no reliable estimate is possible, and

c. A possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent Assets are neither recognized, nor disclosed. Provision, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

h) Sales / Turnover: Sales / Turnover (Gross) includes Central excise duty but excludes transport, octroi and sales tax etc. Inter divisional transfers and branch transfers are treated as sales when actual sales take place on delivery of goods to customers. Excise Duty on sales is shown as a deduction from sales.

i)Revenue Recognition:

In appropriate circumstances, revenue (income) is recognized when no significant uncertainty as to measurability or collectability exists.

Export benefits are accounted when realized / received.

Dividend income is recognized when right to receive is established.

j) Retirement Benefits:

a. The Company's contribution to Provident fund is charged to the Profit and Loss Account

b. Leave encashment benefit at the time of retirement/cessation of service as calculated on the estimated basis, is charged to the Profit and Loss Account. Till Financial year 2009-10, the Leave encashment provision was not made in the books of Accounts and it was the practice of the company to account for the same on Cash basis, however from the Current Financial year 2010-11, as a change in accounting policy, the same has been accounted on the estimated basis in the Books of accounts taking into consideration the accumulated leave balance of the eligible employees as on 31st March, 2011, and the same is taken as a base for working out the requisite liability along with the basic salary as on that date.

c. The Gratuity liability, which is a defined benefit plan, is provided on the basis of actuarial valuation as on balance sheet date and same is unfunded. No Actuarial valuation was carried out by the company till financial year 2009-10 and till that Financial Year the Gratuity was accounted for on Cash Basis. However, as a change in the accounting policy, from the Current financial year i.e. 2010- 11, the same is accounted on the basis of Actuarial valuation.

k) Depreciation:

1. At Roha factory:- (a) Depreciation in respect of fixed assets installed on or before 30.6.1982 has been provided on written

down value basis as per the provisions of Section 205(2) (a) of the Companies Act, 1956 at the rates specified in schedule XIV of the Companies Act,1956.

(b) Depreciation in respect of assets acquired after 30.6.1982 has been provided as under:

(i) On plant and machinery on straight line basis as per provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act,1956.

(ii) On other assets acquired during 1.7.1982 to 30.6.1986 on written down value basis as per the provisions of Section 205(2) (a) of the Companies Act, 1956 at the rates specified in schedule XIV of the Companies Act,1956.

(iii) On other assets acquired since 1.7.1986 on straight line basis as per note (i) above.

(c) Depreciation in respect of assets acquired / purchased during the year has been provided on pro-rata basis according to the period such asset was put to use.

2. At Paonta factory:-

Depreciation has been provided under 'Straight Line Method' as per rates specified in schedule XIV to the Companies Act, 1956.

3. Leasehold land taken over on amalgamation is amortized over the balance period of lease.

l) Foreign Currency Transactions:

Foreign currency transactions are recorded at original rate of exchange in force at the time of occurrence of transactions. Exchange difference on settlement / translation of monetary assets and liabilities at closing rates are recognized in Profit and Loss account, except in case where they relate to acquisition of non monetary assets in which case they are adjusted in carrying cost of such assets.

m) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

n) Leases:

The assets taken on lease prior to April 1, 2001 have been accounted as per the 'Guidance Note on Accounting for Leases' issued by the Institute of Chartered Accountants of India, in 1995.

Assets taken as finance lease on or after 1st April'2001, is capitalized as fixed assets at lower of fair value of the assets and present value of minimum lease rentals. The principal components in the lease rental are adjusted against the lease liability and the interest components are charged to profit and loss account. o) Earnings per share :

The Company reports basic earnings per share in accordance with the Accounting Standard 20 'Earnings per share' issued by the Institute of Chartered Accountants of India. Basic earnings per share is computed by dividing the net profit or loss attributable to the equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.

p) Taxes on Income:

Current tax is determined as the tax payable in respect of taxable income of the year, in accordance with the provisions of The Income Tax Act, 1961.

Deferred Tax for the year is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of its realization.


Mar 31, 2010

A) Use of Estimates:

The presentation of financial statements is in conformity with the generally accepted accounting principles requiring estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialised.

b) FixedAssets:Fixed Assets are stated at cost of acquisition or construction including attributable interest and financial cost till the date of acquisition /installation of the Assets and improvement thereon (net of Modvat / Cenvat.) less accumulated depreciation.

c) Intangible Assets:

Intangible Assets are stated at cost of acquisition less accumulated amortization. Computer Software is amortised over a period of 5 years on straight line basis.

d) Long Term Investments:

Long Term Investments are stated at cost. Provision for diminution is made only if such a decline is other than temporary in the opinion of the management.

e) Inventories:

Inventories are valued at cost or net realisable value whichever is less. Cost is determined by using the FIFO formula. By products are valued at net realisable value. Cost comprises all cost of purchase, cost of conversion, and cost incurred to bring inventories to present location and condition.

f) Contingent Liabilities:

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end till the finalisation of accounts, and have material effect on the position stated in balance sheet at the year end.

g) Sales/Turnover

Sales / Turnover (Gross) includes Central excise duty but excludes transport, octroi and sales tax etc. Inter divisional transfers and branch transfers are treated as safes when actual sales take place on delivery of goods to customers Excise Duty on sales is shown as a deduction from sales.

h) Timing of Revenue Recognition:

In appropriate circumstances, revenue (income) is recognised when no significant uncertainty as to measurability or collectability exists.

i) Export benefits are accounted when realised /received.

j) Retirement Benefits:

Provident fund and Family Pension fund contribution is accounted on accrual basis and charged to Profit and Loss account. The company has not ascertained and provided for the liability in respect of gratuity payable

k) Deferred Revenue Expenses: (Miscellaneous Expenses)

1) Share issue expenses are regarded as deferred revenue expenses and written off over a period of 10 years.

2) Voluntary retirement scheme expenses are deferred over a period of 5 years.

l) Method of Depreciation:

1. At Roha factory

a) Depreciation in respect of fixed assets installed on or before 30.6.1982 has been provided on written down value basis as per the provisions of Section 205(2) (a) of the Companies Act, 1956 at the rates specified in schedule XIV of the said Act.

b) Depreciation in respect of assets acquired after 30.6.1982 has been provided as under

(i) On plant and machinery on straight line basis as per provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates specified in Schedule XIV of the said Act.

(ii) On other assets acquired during 1.7.1982 to 30.6.1986 on written down value basis as per the provisions of Section 205(2) (a) of the Companies Act, 1956 at the rates specified in schedule XIV of the said Act.

(iii) On other assets acquired since 1.7.1986 on straight line basis as per note (i) above.

c) Depreciation in respect of assets acquired / purchased during the year has been provided on pro-rata basis according to the period such asset was put to use.

2. At Paonta factory

Depreciation has been provided under Straight Line Method as per rates specified in schedule XIV to the Companies Act, 1956.

3. Leasehold land taken over on amalgamation is amortised over the balance period of lease.

m) Foreign Currency Transactions:

Foreign currency transactions are recorded at original rate of exchange in force at the time of occurrence of transactions. Exchange difference on settlement / translation of monetary assets and liabilities at closing rates are recognised in Profit and Loss account, except incase where they relate to acquisition of fixed assets in which case they are adjusted in carrying cost of such assets.

n) Excise duty has been accounted on the basis of both payments made in respect of goods dispatched and also provision made for goods lying in bonded warehouse.

o) Modvat / Cenvat Credit:

Modvat / Cenvat Credit is accounted on the basis of material purchased and appropriated against payment of excise duty on clearance of finished goods.

p) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

q) Leave Encashment:

Provision for leave encashment has been made taking into consideration the accumulated leave of the employees and the companys rules in this regard.

r) Leases:

The assets taken on lease prior to April 1, 2001 have been accounted as per the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of India, in 1995.

Assets taken as finance lease on or after 1st April 2001, is capitalised as fixed assets at lower of fair value of the assets and present value of minimum lease rentals. The principal components in the lease rental is adjusted against the lease liability and the interest components is charged to profit and loss account.

s) Taxes on Income:

Current tax is determined as the tax payable in respect of taxable income of the year.

Deferred tax for the year is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised and carried forward only if there is a reasonable / virtual certainty of its realisation.

 
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