GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 Notes to the Consolidated Financial Statements for the year ended March 31, 2022 240 (b) Amounts recognised in Other Comprehensive Income (OCI) ( ` in lakhs ) Year ended March 31, 2022 Year ended March 31, 2021 Before tax Tax (expense) / benefit Net of tax Before tax Tax (expense) / benefit Net of tax Items that will not be reclassified to the Statement of Profit and Loss Remeasurements of the defined benefit plans (2,46.59) 62.06 (1,84.53) (2,73.74) 68.90 (2,04.84) (2,46.59) 62.06 (1,84.53) (2,73.74) 68.90 (2,04.84) (c) Reconciliation of effective tax rate ( ` in lakhs ) As at March 31, 2022 As at March 31, 2021 Profit before tax from continuing and discontinued operations 2487,22.47 550,49.83 Tax using the Group’s domestic tax rate at 25.168% on Normal Profit 215,19.02 138,08.61 Tax using the Group’s domestic tax rate in terms of Long Term Capital Gain at 22.88% 380,98.99 42.12 Total Tax 596,18.01 138,50.73 Tax effect of amounts which are not deductible / (taxable) in calculating taxable income: Corporate social responsibility expenditure 3,15.61 2,59.98 Impairment of assets 36.25 52,60.11 Physician Samples disallowed and added back in the computation 3,46.82 - Payment to Doctors (HCP Payment estimated Basis) 1,25.84 - Actual utilisation of Vemgal related cost - (1,77.00) Other items 14.42 41.28 Tax effect on account of earlier years: Current tax on account of earlier years (refer note (a) below) 187,93.59 - Total tax Expense 792,50.54 192,35.10 Consequent to the reconciliation items shown above, the effective tax rate is 31.88% (Financial Year 2020-21: 34.96%). a) Tax provision in respect of earlier years includes provisions (including interest) amounting to ` 202,00.00 lakhs towards possible disallowances of expenses incurred in prior years towards certain promotional spends which are under litigation with the authorities.