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Atul Ltd | Annual Report 2016-17
h) 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 have been loss-
making for some time, and there are no other tax planning opportunities or other evidence of recoverability
in the near future.
(
`
cr)
Particulars
As at
March 31, 2017
As at
March 31, 2016
As at
April 01, 2015
Unused tax losses for which no deferred tax asset has been
recognised
23.71
30.67
30.22
Potential tax benefit @ 34.61%
8.21
10.61
10.46
As on March 31, 2017 the Group has net operating losses and carry forwards that shall expire as follows:
(
`
cr)
Particulars
As at
March 31, 2017
As at
March 31, 2016
As at
April 01, 2015
Net operating losses
2018-19
–
0.04
0.39
2019-20
0.80
0.93
0.93
2020-21
0.31
0.31
0.31
2021-22
0.24
0.24
0.24
2022-23
0.14
0.14
0.14
2023-24
–
–
–
Unabsorbed depreciation
Indefinitely
22.22
29.01
28.21
i) 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, 2017
As at
March 31, 2016
As at
April 01, 2015
Temporary difference relating to investments in subsidiary
companies for which deferred tax liabilities have not been
recognised:
Undistributed earnings
19.35
13.94
15.50
Unrecognised deferred tax liabilities relating to the above
temporary differences @ 17.304%
3.35
2.41
2.68
The Group has not recognised deferred tax liability associated with fair value gains on Equity share measured in Other
Comprehensive Income, 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.
Notes
to the Consolidated Financial Statements