Amal Ltd 2013-14

41 N. Employee Benefits: i) Defined contribution plan: Contribution paid | payable by the Company during the period to provident fund, employees’ deposit link insurance scheme, officer superannuation fund, employees’ state insurance corporation and labour welfare fund are recognised in the Statement of Profit and Loss. ii) Defined benefit 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 represented by creation of separate funds and is used to meet the liability as and when it accrues for payment in future. Actuarial gains | losses are immediately taken to the Statement of Profit and Loss. Long-term leave 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 and Loss . iii) Short-term employees benefits: Short-term leave encashment is provided at undiscounted amount during the accounting period based on service rendered by employees. iv) Voluntary retirements: Compensation payable under the voluntary retirement scheme is being charged to the Statement of Profit and Loss. O. Taxation: 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 MAT under Section 115JB of the Income Tax Act,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 reviewed at each Balance Sheet date to reassure realisation. P. Earnings Per Share: 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. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (contd) Notes to the Financial Statements