Page 232 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

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

58 Investment properties (contd.)
( H in Lakhs )
For the year ended March 31, 2019
Particulars As at Statement of Other As at
April 01, 2018 profit and loss comprehensive March 31, 2019
income
(I) Components of deferred tax assets (Net)
Deferred tax liabilities
Property, Plant and Equipment, investment property and (1,265.93) (191.14) - (1,457.07)
intangible assets: Impact of difference between written down
value as per books of account and income tax
Deferred tax assets
Expenses claimed for tax purpose on payment basis 92.59 90.61 35.33 218.53
Allowance for doubtful debts and advances 467.88 (244.16) - 223.72
Unabsorbed depreciation/carried forward losses* 492.49 2,454.02 - 2,946.51
Others (5.96) 5.96 - -
Deferred tax charge 2,115.30 35.33
Net deferred tax assets (218.93) 1,931.70
D Details of unused tax losses and unabsorbed tax depreciation for which deferred tax assets have not
been recognised:
( H in Lakhs )
Particulars March 31, 2020 March 31, 2019
Unused tax losses (capital in nature) 225.42 225.42
Unused tax losses of subsidiary 223.85 -
Unused MAT Credit - 4,242.14
The unused tax losses (capital in nature) will expire from financial year 2020-21 to financial year 2027-28 and unused tax credits were expiring
from financial year 2021-22 to financial year
Pursuant to scheme of amalgamation as mentioned in note 1.2, the Parent Company has, recognised an intangible asset of H60,390.05
Lakhs in the form of Goodwill, in its income tax block of assets and has claimed the corresponding depreciation of H15,097.51 Lakhs under
Section 32(1) of the Income Tax Act, 1961 (‘the Act’) in the revised income tax return filed on July 26, 2020 for the assessment year 2019-2020.
Pending the outcome of the assessment by the income tax authorities, the aforesaid amount of depreciation has not been considered as a
deduction for arriving at the provision for taxation and also deferred tax asset has not been created on the amount recognized as goodwill
for the purposes of the Act
60 Share-based payments

Employee share option plan of the Parent Company
1.1 Details of the employee share option plan of the Parent Company
This ESOP 2019 scheme has been framed pursuant to the Scheme of Amalgamation between the erstwhile Fermenta Biotech Limited
(Transferor Company) with DIL Limited (Transferee Company) and their respective shareholders. The Transferor Company prior to the Scheme
of Amalgamation had implemented the ‘Fermenta Biotech Limited - Employee Stock Option Plan 2019’ and were granted employee stock
options to its eligible employees. Further, the number of transferee options issued shall equal to the product of number of transferor options
outstanding on effectiveness of Scheme multiplied by the Share exchange ratio (0.398) and each transferee option shall have an exercise
price per equity share equal to transferor option exercise price per equity shares divided by the share exchange ratio (0.398) and fractions
rounded off to the next higher whole number. The terms and conditions of ESOP 2019 Scheme of DIL Limited are not less favourable than
those of ESOP Scheme of erstwhile Fermenta Biotech Limited. Under the ESOP 2019 Scheme, stock options have been issued to the eligible
employees of erstwhile Fermenta Biotech Limited (Refer note 1.2).

In accordance with the terms of the plan, as approved by the erstwhile shareholders of Fermenta Biotech Limited at an extra ordinary general
meeting, executives and senior employees with the Company were granted options to purchase equity shares.

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