Atul Cover DS (Spine 20mm)

d) Income tax:

The income tax expense or credit for the period is the tax payable on the taxable income of the current period based

on the applicable income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary

differences and unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the

reporting period. The Management periodically evaluates positions taken in tax returns with respect to situations in which

applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts

expected to be paid to the tax authorities.

Minimum Alternate Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognised as current tax in the

¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ ¹ĺĚ ČƑĚēĿƥ îǄîĿŕîċŕĚ ƭŠēĚƑ ƥĺĚ Čƥ ĿŠ ƑĚƙƎĚČƥ ūlj q ¹ ƎîĿē Ŀƙ ƑĚČūijŠĿƙĚē îƙ ēĚljĚƑƑĚē ƥîǊ îƙƙĚƥ

only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period

for which the MAT credit can be carried forward for set off against the normal tax liability. Such an asset is reviewed at

each Balance Sheet date.

Deferred income tax is provided in full, on temporary differences arising between the tax bases of assets and liabilities

and their carrying amounts. However, deferred tax liabilities are not recognised if they arise from the initial recognition

of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in

î ƥƑîŠƙîČƥĿūŠ ūƥĺĚƑ ƥĺîŠ î ċƭƙĿŠĚƙƙ ČūŞċĿŠîƥĿūŠ ƥĺîƥ îƥ ƥĺĚ ƥĿŞĚ ūlj ƥĺĚ ƥƑîŠƙîČƥĿūŠ îljljĚČƥƙ ŠĚĿƥĺĚƑ îČČūƭŠƥĿŠij ƎƑūǛƥ

ŠūƑ ƥîǊîċŕĚ ƎƑūǛƥ ʈ ȳƥîǊ ŕūƙƙȴȦ 'ĚljĚƑƑĚē ĿŠČūŞĚ ƥîǊ Ŀƙ ēĚƥĚƑŞĿŠĚē ƭƙĿŠij ƥîǊ ƑîƥĚƙ ȳîŠē ŕîǅƙȴ ƥĺîƥ ĺîǄĚ ċĚĚŠ ĚŠîČƥĚē ūƑ

substantively enacted by the Balance Sheet date and are expected to apply when the related deferred income tax asset

is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that

future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and

liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities

are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to

realise the asset and settle the liability simultaneously.

ƭƑƑĚŠƥ îŠē ēĚljĚƑƑĚē ƥîǊ Ŀƙ ƑĚČūijŠĿƙĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙȡ ĚǊČĚƎƥ ƥū ƥĺĚ ĚǊƥĚŠƥ ƥĺîƥ Ŀƥ ƑĚŕîƥĚƙ ƥū ĿƥĚŞƙ ƑĚČūijŠĿƙĚē ĿŠ ūƥĺĚƑ

comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or

directly in equity, respectively.

e) Government grants:

Government grants are recognised at their fair value where there is a reasonable assurance that the grant will be

received and the Company will comply with all attached conditions.

ii) Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as

ēĚljĚƑƑĚē ĿŠČūŞĚ îŠē îƑĚ ČƑĚēĿƥĚē ƥū ƎƑūǛƥ ūƑ ŕūƙƙ ĿŠ ƎƑūƎūƑƥĿūŠ ƥū ēĚƎƑĚČĿîƥĿūŠ ūǄĚƑ ƥĺĚ ĚǊƎĚČƥĚē ŕĿǄĚƙ ūlj ƥĺĚ ƑĚŕîƥĚē

assets and presented within other income.

ĿĿĿȴ HūǄĚƑŠŞĚŠƥ ijƑîŠƥƙ ƑĚŕîƥĿŠij ƥū ĿŠČūŞĚ îƑĚ ēĚljĚƑƑĚē îŠē ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ūǄĚƑ ƥĺĚ

period necessary to match them with the costs that they are intended to compensate and presented within other

income.

f) Leases:

As a lessee:

gĚîƙĚƙ ĿŠ ǅĺĿČĺ î ƙĿijŠĿǛČîŠƥ ƎūƑƥĿūŠ ūlj ƥĺĚ ƑĿƙŒƙ îŠē ƑĚǅîƑēƙ ūlj ūǅŠĚƑƙĺĿƎ îƑĚ Šūƥ ƥƑîŠƙljĚƑƑĚē ƥū ƥĺĚ ūŞƎîŠǋ îƙ ŕĚƙƙĚĚ

îƑĚ ČŕîƙƙĿǛĚē îƙ ūƎĚƑîƥĿŠij ŕĚîƙĚƙȦ ¡îǋŞĚŠƥƙ ŞîēĚ ƭŠēĚƑ ūƎĚƑîƥĿŠij ŕĚîƙĚƙ ȳŠĚƥ ūlj îŠǋ ĿŠČĚŠƥĿǄĚƙ ƑĚČĚĿǄĚē ljƑūŞ ƥĺĚ ŕĚƙƙūƑȴ

îƑĚ ČĺîƑijĚē ƥū ƎƑūǛƥ ūƑ ŕūƙƙ ūŠ î ƙƥƑîĿijĺƥȹŕĿŠĚ ċîƙĿƙ ūǄĚƑ ƥĺĚ ƎĚƑĿūē ūlj ƥĺĚ ŕĚîƙĚ ƭŠŕĚƙƙ ƥĺĚ ƎîǋŞĚŠƥƙ îƑĚ ƙƥƑƭČƥƭƑĚē ƥū

ĿŠČƑĚîƙĚ ĿŠ ŕĿŠĚ ǅĿƥĺ ĚǊƎĚČƥĚē ijĚŠĚƑîŕ ĿŠǜîƥĿūŠ ƥū ČūŞƎĚŠƙîƥĚ ĚǊƎĚČƥĚē ĿŠǜîƥĿūŠîƑǋ Čūƙƥ ĿŠČƑĚîƙĚƙ ljūƑ ƥĺĚ ŕĚƙƙūƑȦ