Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 140 Atul Ltd | Annual Report 2019-20 Note 28.5 Current and deferred tax During the year the Company has adopted option available under Section 115 BAA of the Income Tax Act, 1961 as per the taxation laws (amendment ) Act, 2019 dated December 11, 2019. Accordingly, tax expenses, deferred tax assets | liabilities have been recomputed and impact of this has been recognised in the Standalone Statement of Profit or Loss for the year ended March 31, 2020. The major components of income tax expense for the years ended March 31, 2020 and March 31, 2019 are: a) Income tax expense recognised in the Standalone Statement of Profit and Loss: ( ` cr) Particulars 2019-20 2018-19 i) Current tax Current tax on profit for the year 205.42 235.88 Adjustments for current tax of prior periods (1.09) 0.87 Total current tax expense 204.33 236.75 ii) Deferred tax (Decrease) | Increase in deferred tax liabilities (7.23) (2.43) Decrease | (Increase) in deferred tax assets (1.83) (11.06) Adjustments for deferred tax of prior periods due to change in statutory tax rate (32.90) - Total deferred tax expense | (benefit ) (41.96) (13.49) Income tax expense 162.37 223.26 b) Income tax expense recognised in the other comprehensive income: ( ` cr) Particulars 2019-20 2018-19 i) Current tax Remeasurement gain | (loss) on defined benefit plans (0.52) (0.13) Total current tax expenses (0.52) (0.13) ii) Deferred tax Fair value equity investment 4.24 11.00 Effective portion of gain | (loss) on cash flow hedges (0.41) 0.43 Total deferred tax expenses | (benefits) 3.83 11.43 Income tax expenses 3.31 11.30 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 2019-20 2018-19 a) Statutory income tax rate 25.17% 34.94% b) Differences due to: i) Non-deductible expenses 0.20% 0.27% ii) Exempt income (0.86%) (0.40%) iii) Income tax incentives - (0.61%) iv) Impact of rate changes on deferred tax (4.13%) - v) Others (0.15%) 0.05% Effective income tax rate 20.23% 34.25% The Company has adopted the option available under Section 115 BAA of the Income Tax Act, 1961 accordingly statutory income tax rate is revised to 25.17%.