GSK_Annual_Report_2021

Annual Report 2020-21 161 ` in Lakhs For the year ended March 31, 2021 For the year ended March 31, 2020 24 ExcEptionaL ItEms Provision for Severance Pay (Note a) - (17,00.00) - (17,00.00) Note a: Exceptional item for the year ended 31 st March 2020 of ` 1700 lakhs is a charge on account of outstanding litigation matter. 25 Tax ExpEnsE (a) Amounts recognised in profit and loss Current income tax - - Deferred tax Decrease (increase) in deferred tax assets 18.24 5.00 (Decrease) increase in deferred tax liabilities - - Adjustment to deferred tax attributable to change in Income Tax rates - 5.18 Deferred tax expense 18.24 10.18 Tax expense for the year 18.24 10.18 (b) Reconciliation of effective tax rate Profit /(loss) before tax 76.22 (16,80.40) Tax using the Company’s domestic tax rate at 25.168% (Previous Year: 25.168%) 19.18 (4,22.93) Tax effect of: Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Other items (0.94) 4,27.93 Due to change in income tax rate from 26% to 25.168% - 5.18 18.24 10.18 The Company’s weighted average tax rates for the years ended March 31, 2021 and 2020 were 25.168%. Income tax expense was ` nil for the years ended March 31, 2021 and March 31, 2020 (c) Movement in deferred tax balances ` in Lakhs March 31, 2021 Net balance April 1, 2020 Recognised in profit or loss Recognised in OCI Net Deferred tax asset / (liability) Deferred tax asset Expenses allowable for tax purpose when paid 1,50.48 (18.24) - 1,32.25 Provision for pricing matters 13.43 - - 13.43 Tax assets (Liabilities) 1,63.91 (18.24) - 1,45.68 ` in Lakhs March 31, 2020 Net balance April 1, 2019 Recognised in profit or loss Recognised in OCI Net Deferred tax asset / (liability) Deferred tax asset Expenses allowable for tax purpose when paid 1,60.22 (9.74) - 1,50.48 Provision for pricing matters 13.87 (0.44) - 13.43 Tax assets (Liabilities) 1,74.09 (10.18) - 1,63.91 The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered. 26 FinanciaL instrUmEnts – Fair vaLUEs and risk managEmEnt A. Accounting classification and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities including their levels presented below. ` in Lakhs As at March 31, 2021 As at March 31, 2020 Financial assets at amortised cost Cash and cash equivalents 28.72 6,78.36 Other bank balance 1.45 10,01.45 Total financial assets 30.17 16,79.81 Financial liabilities at amortised cost Security deposits received 0.63 0.63 Other non-current financial liabilities 0.72 0.72 Trade payables 22,07.94 3,22.58 Total financial liabilities 22,09.29 3,23.93 B. Fair Value Hierarchy This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured at amortised cost and for which fair values are disclosed in the Standalone Financial Statements. Fair value of financial assets and liabilities measured at amortised cost ` in Lakhs As at March 31, 2021 As at March 31, 2020 Financial assets - - Financial liabilities Security deposits received Carrying value 0.63 0.63 Fair value 0.63 0.63 Other non-current liabilities Carrying value 0.72 0.72 Fair value 0.72 0.72