Amal Ltd 2016-17

79 Notes to the Financial Statements Note 21 : Income and deferred taxes (a) Income tax expense ( ` 000) March 31, 2017 March 31, 2016 Income tax expense Current tax Current tax on profits for the year - - Total current tax expense (A) - - Deferred tax Decrease | (increase) in deferred tax assets 7,995 8,089 (Decrease) | increase in deferred tax liabilities (7,995) (8,089) Total deferred tax expense | (benefit) (B) - - Income tax expense (A + B) - - (b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate ( ` 000) March 31, 2017 March 31, 2016 Profit before income tax expense 88,866 13,480 Tax at the Indian tax rate of 34.608% 30,755 4,665 Expenses not allowable for tax purposes - 22 Utilisation of unabsorbed business losses and unabsorbed depreciation (30,755) (4,687) Income tax expense charged to statement of Profit and Loss - - (c) Tax losses and Tax credits ( ` 000) March 31, 2017 March 31, 2016 April 1, 2015 Unused tax losses for which no deferred tax asset has been recognised. 1,08,036 2,94,891 3,05,675 During the year 2016-17, The unrecognised past tax losses of ` 88,866 thousand (13,542 thousand) has been used to reduce the Current year’s tax of ` 30,755 thousand ( ` 4,687 thousand) . (d) Deferred tax balances The balance comprises temporary differences attributable to ( ` 000) March 31, 2017 March 31, 2016 April 1, 2015 Deferred tax liability on account of: Property plant and equipment, intangible assets and investment property - 5,244 3,636 3,576 Financial liabilities at amortised cost 29,306 38,909 47,058 Total deferred tax liabilities 34,550 42,545 50,634 Deferred tax asset on account of: Provisions 64 47 67 Unabsorbed depreciation 34,486 42,498 50,567 Total deferred tax assets 34,550 42,545 50,634 Net deferred tax liability - - - In view of prudence, deferred tax assets on unabsorbed depreciation has been recognised to the extent of deferred tax liability.