Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 Note 29.5 Current and Deferred tax (continued) The balance comprises temporary differences attributable to the below items and corresponding movement in deferred tax liabilities | (assets): ( ` cr) Particulars As at March 31, 2018 (Charged) | Credited to profit or loss | OCI | equity As at March 31, 2017 (Charged) | Credited to profit or loss | OCI | equity As at March 31, 2016 Property, plant and equipment 145.23 2.15 143.08 63.73 79.35 Provision for leave encashment (8.09) 1.15 (9.24) (1.24) (8.00) Provision for doubtful debts (1.65) (0.55) (1.10) 0.22 (1.32) Provision for doubtful advances – – – 0.07 (0.07) Unabsorbed depreciation* (2.35) – (2.35) (2.35) – Investment properties (6.21) (2.26) (3.95) (0.18) (3.77) Unrealised MTM losses on derivatives (CIRS) – 1.75 (1.75) (1.75) – Effective portion of gain | (loss) on cash flow hedges 0.02 0.27 (0.25) 0.06 (0.31) Elimination of profits resulting from intra-group transactions (2.30) (2.30) – – – MAT credit entitlement (0.11) 22.91 (23.02) (22.95) (0.07) Net deferred tax (assets) | liabilities 124.54 23.12 101.42 35.61 65.81 *  The Group has recognised deferred tax assets on carried forward tax losses and unabsorbed depreciation of Amal Ltd. The subsidiary company has incurred the losses over the last few financial years. The Group has recognised deferred tax assets to the extent of deductible temporary difference. The subsidiary company is currently generating and expected to generate taxable income from 2018 onwards. The losses can be carried forward for a period of 8 years as per local tax regulations and the Group expects to recover the losses. g) Deferred tax assets have not been recognised in respect of these losses as they may not be used to offset taxable profits elsewhere in the Group, they have arisen in subsidiary companies that were loss-making for sometime, and there are no other tax planning opportunities or other evidence of recoverability in the near future. ( ` cr) Particulars As at March 31, 2018 As at March 31, 2017 Unused tax losses for which no deferred tax asset has been recognised 23.72 23.71 Potential tax benefit @ 34.61% 8.21 8.21 As at March 31, 2018 the Group has net operating losses and carry forwards that will expire as follows: ( ` cr) Particulars As at March 31, 2018 As at March 31, 2017 Net operating losses 2019-20 0.81 0.80 2020-21 0.31 0.31 2021-22 0.24 0.24 2022-23 0.14 0.14 Unabsorbed depreciation Indefinitely 22.22 22.22 Notes to the Consolidated Financial Statements