Page 158 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

Notes to the Standalone financial statements for the year ended March 31, 2020

45 Employee benefits (contd.)
Actuarial valuation for compensated absences is done as at the year end and provision is made as per Company rules with corresponding
charge / (credit) to the Standalone statement of profit and loss amounting to (H18.28 Lakhs) [March 31, 2019: H185.39 Lakhs] and it covers
all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined at the year end
using the “Projected unit credit model”. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are
recognised in OCI where as gains and losses in respect of other long term employee benefit plans are recognised in the Standalone
statement of profit and loss.
46 Income tax
46A Tax expense recognised in the Standalone statement of profit and loss and other comprehensive income consists of:
( H in Lakhs )
Particulars March 31, 2020 March 31, 2019
Tax expenses:
Current tax 336.55 3,192.21
Deferred tax credit (1,948.92) (2,115.47)
Income tax expense recognised in the Standalone statement of profit and loss (1,612.37) 1,076.74
Tax expense recognised in other comprehensive income 70.07 (35.33)
Total Tax expense (1,542.30) 1,041.41
46B A reconciliation of income tax expense to the amount computed by applying the statutory income tax rate to the
profit before income tax is summarised below:
( H in Lakhs )
Particulars March 31, 2020 March 31, 2019
Profit before tax 4,754.66 12,112.03
Enacted income tax rate in India (%) # 29.120 34.944
Income tax expense calculated at enacted income tax rate 1,384.56 4,232.43
Effect of tax on:
Brought forward tax loss of the past year for which DTA is created - (1,732.06)
Impact of change in tax rates on Deferred tax assets 84.89 -
MAT Credit entitlement recognised (5,072.14) -
Utilisation of Deferred tax asset recognised on unaborbed depreciation/ carried forward losses 2,946.52 -
pursuant to scheme of amalgamation (refer note 60)
Expenses disallowed under Income Tax Act 64.85 407.91
Income exempted from tax (1,198.96) (2,628.46)
Incremental deduction on account of research and development costs (167.54) (213.60)
Reversal of income tax expense of financial year 2018-19 pursuant to scheme of amalgamation (510.03) -
(Refer note 60)
Differential tax effect due to effective tax rate difference 853.92 1,003.84
Others 1.56 6.68
Total income tax expense (1,612.37) 1,076.74
Tax expenses recognised in Standalone statement of profit and loss (1,612.37) 1,076.74
Tax expense recognised in other comprehensive income 70.07 (35.33)
Total tax expense (1,542.30) 1,041.41
# The tax rate used for reconciliation above is the corporate tax rate of 29.12% (March 31, 2019: 34.944%) at which the Company is liable to
pay tax on taxable income under the Indian tax Laws.

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