PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

111 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Particulars As at March 31, 2021 As at March 31, 2020 (Restated) Income tax recognised in other comprehensive income Tax expense related to items recognised in OCI during the year: Remeasurements of defined benefit (asset) (2.42) (23.34) Income tax charged to OCI (2.42) (23.34) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2021 and March 31, 2020: Accounting profit before income tax 15,753.45 18,926.65 At India’s statutory income tax rate of 25.17% (March 31, 2020 : 25.17%) 3,965.14 4,763.84 Impact of Ind AS 116 – 11.95 Impact of change in tax rate – (529.49) Reversal of DTA – 15.29 Non-deductible expenses for tax purposes 85.60 174.10 Others 0.56 89.27 4,051.30 4,524.96 4,051.30 4,524.96 Income tax expense reported in the statement of profit and loss – The Company has chosen to exercise the option of lower tax rate of 25.17% (inclusive of surcharge and cess) under Section 115BAA of the Income tax act,1961 as introduced by the Taxation laws (Amendment) Ordinance 2019. The impact of this change has been recognised in tax expenses for the year ended March 31, 2021 and March 31, 2020 respectively at the effective tax rate. Particulars As at April 01, 2020 (Restated) Credit/(charge) in the statement of Profit and Loss Credit/(charge) in other comprehensive income Adjustments due to transition impact of Ind AS 116 As at March 31, 2021 Deferred tax (assets)/liabilities – Tax depreciation 2,175.45 130.21 – – 2,305.66 Deferred asset on ROU impact (20.64) (3.66) – – (24.30) Provision for doubtful debts and advances (54.79) – – – (54.79) Expenses allowable for tax purposes when paid (365.64) (57.65) (2.42) – (425.71) Forex loss unrealised Impact (Derivative instrument) (402.05) (28.78) – – (430.83) 1,332.33 40.12 (2.42) – 1,370.03 Particulars As at April 01, 2019 (Restated) Credit/(charge) in the Statement of Profit and Loss Credit/(charge) in Other Comprehensive Income Adjustments due to transition impact of Ind AS 116 As at 31 March, 2020 (Restated) Deferred tax (assets)/liabilities Tax Depreciation 2,325.26 (149.81) – – 2,175.45 Deferred asset on ROU impact – (13.69) – (6.95) (20.64) Provision for doubtful debts and advances (20.16) (34.63) – – (54.79) Expenses allowable for tax purposes when paid (392.84) 50.54 (23.34) – (365.64) Forex loss unrealised Impact (Derivative instrument) (182.06) (219.99) – – (402.05) 1,730.20 (367.58) (23.34) (6.95) 1,332.33 a) In respect of Deferred taxes, all items are attributable to origination and reversal of temporary differences. b) Deferred tax benefits are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which, those deductible temporary differences can be realised. NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 17 Income tax (continued)