Atul Ltd 2017-18

191 Note 29.5 Current and Deferred tax (continued) h) Unrecognised temporary differences The Group has not recognised deferred tax liability associated with undistributed earnings of its subsidiary companies as it can control the timing of the reversal of these temporary differences and it is probable that such differences will not reverse in the foreseeable future. ( ` cr) Particulars As at March 31, 2018 As at March 31, 2017 Temporary difference relating to investments in subsidiary companies for which deferred tax liabilities have not been recognised: Undistributed earnings 7.08 19.35 Unrecogniseddeferredtax liabilities relatingtotheabove temporarydifferences @ 17.30% 1.23 3.35 The Group has not recognised deferred tax liability | asset associated with fair value gain | (loss) on equity share measured at OCI as based on the Management projection of future taxable income and existing plan, it is not probable that such difference will reverse in the foreseeable future. i) Effective income tax rate The effective income tax rate up to March 31, 2018 is 34.61%. The increase in effective income tax rate to 34.94% was announced in Union Budget 2018 which was substantively enacted on March 29, 2018 and will be effective from April 01, 2018. As a result, the relevant deferred tax balances has been remeasured using revised effective income tax rate. Note 29.6 Employee benefit obligations a) Defined benefit plans: Balance Sheet amount (Gratuity) ( ` cr) Particulars Present value of obligation Fair value of plan assets Net amount As at March 31, 2016 48.02 (47.96) 0.06 Current service cost 2.67 – 2.67 Interest expense | (income) 3.73 (3.73) – Total amount recognised in the Consolidated Statement of Profit and Loss 6.40 (3.73) 2.67 Remeasurement Return on plan assets, excluding amount included in interest expense | (income) 0.02 (1.98) (1.96) (Gain) | Loss from change in financial assumptions 1.14 – 1.14 Experience (gain) | loss (1.64) – (1.64) Total amount recognised in Other Comprehensive Income (0.48) (1.98) (2.46) Employer contributions – (0.18) (0.18) Benefit payments (5.85) 5.85 – As at March 31, 2017 48.09 (48.00) 0.09 Current service cost 2.96 – 2.96 Interest expense | (income) 3.46 (3.46) – Total amount recognised in the Consolidated Statement of Profit and Loss 6.42 (3.46) 2.96 Remeasurement Return on plan assets, excluding amount included in interest expense | (income) – 0.07 0.07 (Gain) | Loss from change in financial assumptions (1.13) – (1.13) Experience (gain) | loss (1.66) – (1.66) Total amount recognised in Other Comprehensive Income (2.79) 0.07 (2.72) Employer contributions – (0.28) (0.28) Benefit payments (5.22) 5.18 (0.04) As at March 31, 2018 46.50 (46.49) 0.01 Notes to the Consolidated Financial Statements