Atul Ltd 2016-17

191 c) The reconciliation between the Statutory income tax rate applicable to the Group and the effective income tax rate of the Group 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 0.76% 1.29% ii) Income exempt from income tax (2.33%) (1.02%) iii) Income tax incentives (3.37%) (2.89%) iv) Others (0.04%) 0.50% Effective income tax rate 29.63% 32.49% d) No aggregate amounts of current and deferred tax have arisen in the reporting periods which have not been recognised in the Consolidated Statement of Profit and Loss or Other Comprehensive Income but directly debited | (credited) to equity. e) Current tax liabilities (net) ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Opening balance 0.59 5.94 – Add: Current tax payable for the year 87.11 108.03 84.01 Less: Taxes paid (84.31) (113.38) (78.07) Closing balance 3.39 0.59 5.94 f) Current tax assets (net) ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Opening balance 4.36 1.57 – Add: Tax paid in advance, net of provisions during the year (3.15) 2.79 1.57 Closing balance 1.21 4.36 1.57 g) Deferred tax liabilities (net) The balance comprises temporary differences attributable to the below items and corresponding movement in deferred tax liabilities | (assets): ( ` cr) Particulars As at March 31, 2017 (Charged) | Credited to profit or loss | OCI As at March 31, 2016 (Charged) | Credited to profit or loss | OCI As at April 01, 2015 Property, plant and equipment 143.08 63.73 79.35 22.60 56.75 Total deferred tax liabilities 143.08 63.73 79.35 22.60 56.75 Provision for leave encashment (9.24) (1.24) (8.00) (0.42) (7.58) Provision for doubtful debts (1.10) 0.22 (1.32) 0.18 (1.50) Provision for doubtful advances – 0.07 (0.07) – (0.07) Unabsorbed depreciation * (2.35) (2.35) – – – Investment properties (3.95) (0.18) (3.77) (0.25) (3.52) Voluntary Retirement Scheme – – – 0.16 (0.16) Unrealised MTM losses on derivatives (CIRS) (1.75) (1.75) – – – Effective portion of gains and loss on cash flow hedges (0.25) 0.06 (0.31) (0.31) – MAT credit entitlement (23.02) (22.95) (0.07) (0.07) – Total deferred tax assets (41.66) (28.12) (13.54) (0.71) (12.83) Net deferred tax (asset) | liabilities 101.42 35.61 65.81 21.89 43.92 *  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 extend 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. Notes to the Consolidated Financial Statements