Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 Note 27.5 Current and Deferred tax The major components of income tax expense for the years ended March 31, 2017 and March 31, 2016 are: a) Income tax expense ( ` cr) Particulars 2016-17 2015-16 i) Current tax Current tax on profit for the year 81.80 103.56 Adjustments for current tax of prior periods (2.07) – Total current tax expense 79.73 103.56 ii) Deferred tax (Decrease) | Increase in deferred tax liabilities 61.26 22.50 Decrease | (Increase) in deferred tax assets (25.77) (0.31) Total deferred tax expense | (benefit) 35.49 22.19 Income tax expense 115.22 125.75 b) The reconciliation between the statutory income tax rate applicable to the Company and the effective income tax rate of the Company is as follows: Particulars 2016-17 2015-16 a) Statutory income tax rate 34.61% 34.61% b) Differences due to: i) Expenses not deductible for tax purposes 0.75% 1.30% ii) Income exempt from income tax (2.17%) (0.99%) iii) Income tax incentives (3.48%) (2.94%) iv) Others (0.94%) (0.55%) Effective income tax rate 28.77% 31.43% c) No aggregate amounts of current and deferred tax have arisen in the reporting periods which have been recognised in equity and not in Statement of Profit and Loss or Other Comprehensive Income. d) Current tax assets ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Opening balance 3.11 – – Add: Tax paid in advance, net of provisions during the year (3.11) 3.11 – Closing balance – 3.11 – e) Current tax liabilities ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Opening balance – 5.19 – Add: Current tax payable for the year 79.73 103.56 80.50 Less: Taxes paid (77.74) (108.75) (75.31) Closing balance 1.99 – 5.19 Notes to the Financial Statements