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Notes to the Financial Statements20 TaxationThe GroupThe Company2004 2003 2004 2003$ $ $ $Current taxation 1,717,000 1,247,445 1,300,945 1,175,979Utilisation of tax benefitsarising from unabsorbed taxlosses brought forward (334,194) (217,959) - (217,959)Deferred taxation (Note 6) (26,900) 158,554 (26,900) 158,5541,355,906 1,188,040 1,274,045 1,116,574(Over)/underprovision in respect of prior year- current taxation - 24 - -- deferred taxation (Note 6) (112,301) - (112,301) -1,243,785 1,188,064 1,161,744 1,116,574The tax expense on the results of the financial year varies from the amount of income tax determined byapplying the Singapore statutory rate of income tax on the Group’s and the Company’s profits as a result of thefollowing:The GroupThe Company2004 2003 2004 2003$ $ $ $Profit before taxation 11,518,217 7,765,532 9,058,570 7,285,260Tax at statutory rate of 20% (2003 - 22%) 2,303,643 1,708,417 1,811,714 1,602,757Tax effect on non-deductible expenses 95,305 118,899 49,945 62,152Tax effect on non-taxable income (204,749) (22,812) (11,000) (15,400)Development expansion scheme taxincentive (561,383) (466,615) (561,383) (466,615)Singapore statutory incomeexemption (21,000) (23,100) (10,500) (11,550)Deferred tax assets on temporarydifferences not recognised - 163,189 - 163,189Difference in foreign tax rates 83,015 - - -Change in tax rate of 2% (2003 - Nil%) (4,731) - (4,731) -Utilisation of deferred tax assets ontemporary differences not recognisedin prior year (334,194) (289,938) - (217,959)1,355,906 1,188,040 1,274,045 1,116,57464 inter-roller engineering limited annual report2004