Atul Ltd 2020-21
137 Statutory Report 22 - 87 Financial Statements 88 - 229 Corporate Overview 01 - 21 Note 28.5 Current and deferred tax The major components of income tax expense for the years ended March 31, 2021, and March 31, 2020, are: a) Income tax expense recognised in the Statement of Profit and Loss ( ` cr) Particulars 2020-21 2019-20 i) Current tax Current tax on profit for the year 200.69 205.42 Adjustments for current tax of prior periods (1.50) (1.09) Total current tax expense 199.19 204.33 ii) Deferred tax (Decrease) | Increase in deferred tax liabilities (0.90) (7.23) Decrease | (Increase) in deferred tax assets (1.43) (1.83) Adjustments for deferred tax of prior periods due to change in statutory tax rate - (32.90) Total deferred tax expense | (benefit ) (2.33) (41.96) Income tax expense 196.86 162.37 b) Income tax expense recognised in the other comprehensive income ( ` cr) Particulars 2020-21 2019-20 i) Current tax Remeasurement gain | (loss) on defined benefit plans (0.27) (0.52) Total current tax expenses (0.27) (0.52) ii) Deferred tax Fair value of equity investment 9.61 4.24 Effective portion of gain | (loss) on cash flow hedges 0.15 (0.41) Total deferred tax expenses | (benefits) 9.76 3.83 Income tax expenses 9.49 3.31 c) T he reconciliation between the statutory income tax rate applicable to the Company and the effective income tax rate of the Company is as follows: Particulars 2020-21 2019-20 a) Statutory income tax rate 25.17% 25.17% b) Differences due to: i) Non-deductible expenses 0.53% 0.20% ii) Exempt income (0.02%) (0.86%) iii) Income tax incentives (1.77%) - iv) Impact of rate changes on deferred tax - (4.13%) v) Others (0.13%) (0.15%) Effective income tax rate 23.78% 20.23%
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