Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 h) 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 have been loss- making for some time, and there are no other tax planning opportunities or other evidence of recoverability in the near future. ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Unused tax losses for which no deferred tax asset has been recognised 23.71 30.67 30.22 Potential tax benefit @ 34.61% 8.21 10.61 10.46 As on March 31, 2017 the Group has net operating losses and carry forwards that shall expire as follows: ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Net operating losses 2018-19 – 0.04 0.39 2019-20 0.80 0.93 0.93 2020-21 0.31 0.31 0.31 2021-22 0.24 0.24 0.24 2022-23 0.14 0.14 0.14 2023-24 – – – Unabsorbed depreciation Indefinitely 22.22 29.01 28.21 i) 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, 2017 As at March 31, 2016 As at April 01, 2015 Temporary difference relating to investments in subsidiary companies for which deferred tax liabilities have not been recognised: Undistributed earnings 19.35 13.94 15.50 Unrecognised deferred tax liabilities relating to the above temporary differences @ 17.304% 3.35 2.41 2.68 The Group has not recognised deferred tax liability associated with fair value gains on Equity share measured in Other Comprehensive Income, 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. Notes to the Consolidated Financial Statements