ABC Co. Ltd.

Deferred Taxation
As at June 30, 2005

Applicable Tax rate 35%

RUPEES RUPEES
Accelerated Tax Depreciation
Accounting WDV of owned assets as on june 30, 2005. 310,650,000
Tax WDV as on june 30, 2005. (196,985,164)
113,664,836 35% 39,782,693
z
Impact of finance lease
as per books
WDV of leased assets 148,608,000
Financial charges allocated to future period 18,315,000
166,923,000

As per tax
Outstanding lease rentals (Principle + Markup) 130,146,000
36,777,000 35% 12,871,950
Provisions
Gratuity (27,536,438)
doubtful debts (8,436,780)
doubtful advances (5,250,153)
Obsolescence (6,160,833)
(47,384,204) 35% (16,584,471)

Assessed Losses (35,248,632) 35% (12,337,021)

Excess of Turnover Tax over Normal Tax (6,432,835)

Deferred tax Liability / (Asset) as at june 30, 2005 17,300,315

Less: Deferred tax Liability / (Asset) as at june 30, 2004 15,436,488

Net Provison / (Reversal) during the year 1,863,827