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Atul Ltd | Annual Report 2017-18
Note 27.5 Current and Deferred tax
(continued)
The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are:
a) Income tax expense recognised in the Statement of Profit or Loss:
(
`
cr)
Particulars
2017-18
2016-17
i)
Current tax
Current tax on profit for the year
103.04
81.80
Adjustments for current tax of prior periods
(0.83)
(2.07)
Total current tax expense
102.21
79.73
ii)
Deferred tax
(Decrease) | Increase in deferred tax liabilities
138.74
61.26
Decrease | (Increase) in deferred tax assets
(114.11)
(25.77)
Total deferred tax expense | (benefit)
24.63
35.49
Income tax expense
126.84
115.22
b) Income tax expense recognised in the Statement of Other Comprehensive Income:
(
`
cr)
Particulars
2017-18
2016-17
i)
Current tax
Remeasurement gain | (loss) on defined benefit plans
0.95
0.86
Total current tax expense
0.95
0.86
ii)
Deferred tax
Effective portion of gain | (loss) on cash flow hedges
0.02
(0.25)
Total deferred tax expense | (benefit)
0.02
(0.25)
Income tax expense
0.97
0.61
c) The reconciliation between the statutory income tax rate applicable to the Company and the effective
income tax rate of the Company is as follows:
Particulars
2017-18
2016-17
a) Statutory income tax rate
34.61%
34.61%
b) Differences due to:
i)
Expenses not deductible for tax purposes
0.93%
0.75%
ii)
Income exempt from income tax
(1.56%)
(2.17%)
iii)
Income tax incentives
(0.55%)
(3.48%)
iv)
Others
(1.43%)
(0.94%)
Effective income tax rate
32.00% 28.77%
Notes
to the Financial Statements