Depreciation compliance: companies must provide statutory depreciation regardless of tax admissibility, or risk defective accounts and penalties. For determining depreciation to be provided for corporate distributable profits, companies must make the required depreciation provision irrespective of whether the Income tax Act admits a depreciation allowance; only the depreciation rates in the Income tax Rules are relevant, and omission to provide such depreciation will prevent accounts from presenting a true and fair view and may attract penalties on company officers.