Amal Ltd 2012-13

ii) Definedbenefit plan: Gratuity: Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.The liability so provided is representedby creationof separate funds and is used tomeet the liability as andwhen it accrues for payment in future.Actuarial gains | losses are immediately taken to the Statement of Profit andLoss. Long - termleave encashment: Long - term leave encashment is provided for based on actuarial valuation on project unit credit method carried by an actuary as at the end of the year. Actuarial gains | losses are immediately taken to the Statement of Profit andLoss . iii) Short -termemployees benefits: Short - term leave encashment is provided at undiscounted amount during the accounting periodbasedon service renderedby employees. iv) Voluntary retirements: Compensation payable under the Voluntary Retirement Scheme is being charged to the Statement of Profit andLoss . i) Income tax expense comprises current tax and deferred tax charge or credit.Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. ii) The company is declared sick under Section 17(1) of SICA (Special Provisions),1985 and hence the MATunder Section115JBof the IncomeTaxAct,1961 is not applicable. iii) Deferred tax asset and deferred tax liability are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets on account of timing differences are recognised, only to the extent there is a reasonable certainty of its realisation.Deferred tax assets are reviewedat eachBalance Sheet date to reassure realisation. The Company reports basic and diluted Earnings Per Share in accordance with Accounting Standard 20 on 'Earnings Per Share'. Basic earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of equity share outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss for the period by the weighted average number of equity shares outstanding during the period adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive. O. Taxation: P. Earnings Per Share: 37 Notes to financial statements