Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 Note 27.5 Current and Deferred tax (continued) The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are: a) Income tax expense recognised in the Statement of Profit or Loss: ( ` cr) Particulars 2017-18 2016-17 i) Current tax Current tax on profit for the year 103.04 81.80 Adjustments for current tax of prior periods (0.83) (2.07) Total current tax expense 102.21 79.73 ii) Deferred tax (Decrease) | Increase in deferred tax liabilities 138.74 61.26 Decrease | (Increase) in deferred tax assets (114.11) (25.77) Total deferred tax expense | (benefit) 24.63 35.49 Income tax expense 126.84 115.22 b) Income tax expense recognised in the Statement of Other Comprehensive Income: ( ` cr) Particulars 2017-18 2016-17 i) Current tax Remeasurement gain | (loss) on defined benefit plans 0.95 0.86 Total current tax expense 0.95 0.86 ii) Deferred tax Effective portion of gain | (loss) on cash flow hedges 0.02 (0.25) Total deferred tax expense | (benefit) 0.02 (0.25) Income tax expense 0.97 0.61 c) The reconciliation between the statutory income tax rate applicable to the Company and the effective income tax rate of the Company is as follows: Particulars 2017-18 2016-17 a) Statutory income tax rate 34.61% 34.61% b) Differences due to: i) Expenses not deductible for tax purposes 0.93% 0.75% ii) Income exempt from income tax (1.56%) (2.17%) iii) Income tax incentives (0.55%) (3.48%) iv) Others (1.43%) (0.94%) Effective income tax rate 32.00% 28.77% Notes to the Financial Statements