193 / 220
191
Note 29.5 Current and Deferred tax
(continued)
h) 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, 2018
As at
March 31, 2017
Temporary difference relating to investments in subsidiary companies for
which deferred tax liabilities have not been recognised:
Undistributed earnings
7.08
19.35
Unrecogniseddeferredtaxliabilitiesrelatingtotheabovetemporarydifferences
@ 17.30%
1.23
3.35
The Group has not recognised deferred tax liability | asset associated with fair value gain | (loss) on equity share measured
at OCI 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.
i) Effective income tax rate
The effective income tax rate up to March 31, 2018 is 34.61%. The increase in effective income tax rate to 34.94% was
announced in Union Budget 2018 which was substantively enacted on March 29, 2018 and will be effective from April 01,
2018. As a result, the relevant deferred tax balances has been remeasured using revised effective income tax rate.
Note 29.6 Employee benefit obligations
a) Defined benefit plans:
Balance Sheet amount (Gratuity)
(
`
cr)
Particulars
Present value of
obligation
Fair value of
plan assets
Net amount
As at March 31, 2016
48.02
(47.96)
0.06
Current service cost
2.67
–
2.67
Interest expense | (income)
3.73
(3.73)
–
Total amount recognised in the Consolidated Statement
of Profit and Loss
6.40
(3.73)
2.67
Remeasurement
Return on plan assets, excluding amount included in interest
expense | (income)
0.02
(1.98)
(1.96)
(Gain) | Loss from change in financial assumptions
1.14
–
1.14
Experience (gain) | loss
(1.64)
–
(1.64)
Total amount recognised in Other Comprehensive Income
(0.48)
(1.98)
(2.46)
Employer contributions
–
(0.18)
(0.18)
Benefit payments
(5.85)
5.85
–
As at March 31, 2017
48.09
(48.00)
0.09
Current service cost
2.96
–
2.96
Interest expense | (income)
3.46
(3.46)
–
Total amount recognised in the Consolidated Statement
of Profit and Loss
6.42
(3.46)
2.96
Remeasurement
Return on plan assets, excluding amount included in interest
expense | (income)
–
0.07
0.07
(Gain) | Loss from change in financial assumptions
(1.13)
–
(1.13)
Experience (gain) | loss
(1.66)
–
(1.66)
Total amount recognised in Other Comprehensive Income
(2.79)
0.07
(2.72)
Employer contributions
–
(0.28)
(0.28)
Benefit payments
(5.22)
5.18
(0.04)
As at March 31, 2018
46.50
(46.49)
0.01
Notes
to the Consolidated Financial Statements