GLOBAL

8. TAX (cont'd)(b)Tax reconciliationThe income tax expense on the results for the ®nancial year varies from the amount ofincome tax determined by applying the Singapore standard rate of income tax to pro®tbefore tax due to the following factors:2002 2001$ $Pro®t before tax 1,077,764 1,384,004Tax calculated at a tax rate of 24.5%(2001: 24.5%) 264,052 339,081Singapore statutory stepped income exemption (12,863) (12,863)Realisation of deferred tax bene®ts not previously recognised Ð (85,585)Shares of loss of associated companies not deductible for tax purposes 17,150 ÐExpenses not deductible for tax purposes 86,661 63,367Under-provision of current tax in prior years Ð 220,000355,000 524,000The tax provision for the year ended 31 March 2002 has been arrived at based on theenacted statutory tax rate of 24.5% as at the balance sheet date. Subsequent to 31March 2002, the Singapore Minister of Finance announced a reduction in the corporatetax rate from 24.5% to 22% for the year of assessment 2003. The reduction in thestatutory tax rate will therefore, result in tax savings to the Company of approximately$36,000.(c)Movements in the provision for current tax2002 2001$ $Balance at the beginning of the ®nancial year 524,000 ÐCurrent ®nancial year's tax expense 275,000 304,000Under-provision in previous ®nancial year Ð 220,000Balance at the end of the ®nancial year 799,000 524,000(d)Movements in the provision for deferred tax2002 2001$ $Balance at the beginning of the ®nancial year Ð ÐCharged to income statement 80,000 ÐBalance at the end of the ®nancial year 80,000 Ð(e)Composition of deferred taxThe deferred tax liability relates mainly to accelerated capital allowances over depreciationof ®xed assets.E-62