Ruchika Labs Ltd. purchases a machine costing Rs. 210 lacs and factory building for Rs. 9 lacs on 1st April 2006. Assume that the company does not own any other depreciable asset. Work out the first year depreciation as per SLM and WDV methods for all the three shifts under the Companies act and as per the Income Tax Act. Also work out the book profit and taxable profit for the year 2006–07 assuming that the profit before depreciation but after providing for all other expenses for the year was Rs. 95 lacs.
Analyse the results.