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Atul Ltd | Annual Report 2017-18
Note 29.5 Current and Deferred tax
(continued)
The balance comprises temporary differences attributable to the below items and corresponding movement in deferred tax
liabilities | (assets):
(
`
cr)
Particulars
As at
March 31,
2018
(Charged) |
Credited to
profit or loss
| OCI | equity
As at
March 31,
2017
(Charged) |
Credited to
profit or loss
| OCI | equity
As at
March 31,
2016
Property, plant and equipment
145.23
2.15
143.08
63.73
79.35
Provision for leave encashment
(8.09)
1.15
(9.24)
(1.24)
(8.00)
Provision for doubtful debts
(1.65)
(0.55)
(1.10)
0.22
(1.32)
Provision for doubtful advances
–
–
–
0.07
(0.07)
Unabsorbed depreciation*
(2.35)
–
(2.35)
(2.35)
–
Investment properties
(6.21)
(2.26)
(3.95)
(0.18)
(3.77)
Unrealised MTM losses on derivatives (CIRS)
–
1.75
(1.75)
(1.75)
–
Effective portion of gain | (loss) on cash flow
hedges
0.02
0.27
(0.25)
0.06
(0.31)
Elimination of profits resulting from intra-group
transactions
(2.30)
(2.30)
–
–
–
MAT credit entitlement
(0.11)
22.91
(23.02)
(22.95)
(0.07)
Net deferred tax (assets) | liabilities
124.54
23.12
101.42
35.61
65.81
* 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 extent of 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.
g)
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 were loss-making for sometime, and there are no
other tax planning opportunities or other evidence of recoverability in the near future.
(
`
cr)
Particulars
As at
March 31, 2018
As at
March 31, 2017
Unused tax losses for which no deferred tax asset has been recognised
23.72
23.71
Potential tax benefit @ 34.61%
8.21
8.21
As at March 31, 2018 the Group has net operating losses and carry forwards that will expire as follows:
(
`
cr)
Particulars
As at
March 31, 2018
As at
March 31, 2017
Net operating losses
2019-20
0.81
0.80
2020-21
0.31
0.31
2021-22
0.24
0.24
2022-23
0.14
0.14
Unabsorbed depreciation
Indefinitely
22.22
22.22
Notes
to the Consolidated Financial Statements