PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

168 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) 17 Income tax Particulars As at March 31, 2021 As at March 31, 2020 (Restated) Amounts recognised in profit or loss The major components of income tax expense for the years ended March 31, 2021 and March 31, 2020 are: Current income tax: Current income tax expenses 4,146.97 4,952.27 Tax Adjustment of earlier years – (14.15) Deferred income tax: Relating to origination and reversal of temporary differences (14.79) (277.77) Income tax expense reported in the statement of profit or loss for the year 4,132.18 4,660.35 Income tax recognised in other comprehensive income for the year 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 for the year (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 15,822.24 19,263.29 At India’s statutory income tax rate of 25.17% (March 31, 2020 : 25.17%) 3,982.46 4,848.57 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 Foreign tax impact 8.66 10.81 Others (Due to loss in subsidiary) 55.46 129.12 4,132.18 4,660.35 Income tax expense reported in the statement of profit and loss 4,132.18 4,660.35 The group 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. Deferred Tax movement 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 Difference between WDV as per books and income tax 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 (42.08) – – – (42.08) 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) Unrealised profit on stock 8.18 (54.91) – – (46.73) Others (9.77) – – – (9.77) 1,343.45 (14.79) (2.42) – 1,326.24 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs)