Annual Report-FY 2012-13 - Timex Group India

33. Expenditure in foreign currency (Rs. in lakhs)Particulars 31 March 2013 31 March 2012Travelling 11 19IT support expenses 66 40Service charges 97 39174 9834. Earnings in foreign currency (Rs. in lakhs)Particulars 31 March 2013 31 March 2012Exports on F.O.B basis 1,038 564Service income 227 1771,265 74135. TaxationThe Company has significant unabsorbed depreciation and carry forward losses. In view of the absence of virtualcertainty of realisation of carried forward tax losses and unabsorbed depreciation, deferred tax assets are recognisedonly to the extent of deferred tax liabilities.The major components of deferred tax assets and liabilities are as follows:(Rs. in lakhs)Particulars 31 March 2013 31 March 2012Deferred tax liabilitiesDepreciation 31 43Total deferred tax liability 31 43Deferred tax assetsGratuity 56 50Leave encashment 46 45Provision for doubtful debts and advances 249 141Provision for warranty 13 23Provision for sales returns and unearned margin 121 70Provision for litigations 14 14Disallowance under section 40(a) of the Income tax Act, 1961 - 6Carried forward depreciation 968 640Carried forward loss 1,133 -Total deferred tax asset 2,600 989Deferred tax asset recognised31 43(to the extent of deferred tax liability recognised above)Net deferred tax asset/(liability) Nil Nil36. Segment informationThe Company’s business segment comprises:- Watches: Manufacturing and trading of watches;- Others: Providing IT and finance related back office support to other group companies.52