Approval under section 35(1)(ii) conditions research tax recognition on separate accounts, annual returns and audited filings. Approval under section 35(1)(ii) is granted to Diabetes Research Centre Foundation, Madras as an 'Association' conditioned on maintaining a separate account for research receipts, filing annual returns of scientific research activities by 31st May, and submitting audited annual accounts, income and expenditure statements, and a balance-sheet to the prescribed authority, the Central tax board, and the concerned Commissioner by 30th June. The institution must apply for extension three months before approval expiry; late applications may be rejected. The approval is effective from 1 April 1987 to 31 March 1988.