annual-report-FY2021

256 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Income tax recognised in Other comprehensive income Rupees crores Particulars 2021 2020 Deferred tax related to items recognised in other comprehensive income during the year: Effective portion of gains and loss on designated portion of hedging instruments in a cash flow hedge..... 0.71 11.32 Net fair value gain on investments in debt instruments at FVTOCI..................................................................... 0.23 (0.11) Remeasurement of defined benefit plans.............................................................................................................. 20.07 3.25 Total Income tax recognised in Other comprehensive income . ........................................................................... 21.01 14.46 The reconciliation of estimated income tax expense at tax rate to income tax expense reported in profit or loss is as follows: Rupees crores Particulars 2021 2020 Profit before tax........................................................................................................................................................ 1,460.28 3,116.03 Applicable Income tax rate. ..................................................................................................................................... 25.17% 25.17% Expected income tax expense.................................................................................................................................. 367.52 784.24 Tax effect of adjustments to reconcile expected income tax expense to reported income tax expense: Effect of income exempt from tax/non taxable on compliance of conditions.................................................... (218.44) (534.36) Effect of expenses/provisions not deductible in determining taxable profit. ..................................................... 1,011.33 898.68 Effect of change in tax rate due to switch to new tax regime (Refer note below)........................................... — 599.14 Effect of utilisation/ (recognition) of deferred tax on capital losses. .................................................................. 15.03 27.30 Effect of net additional/(reversal) of provision in respect of prior years. ........................................................... — 127.45 Others......................................................................................................................................................................... 16.18 (116.97) Reported income tax expense ................................................................................................................................. 1,191.62 1,785.48 Note: During the previous year ended 31 st March, 2020, the Government of India vide Taxation Laws (Amendment) Tax Ordinance, 2019 allowed an option to the domestic companies to switch to a lower tax rate structure of 22% (25.17% including surcharge and cess) from the earlier 30% (34.944% including surcharge and cess) subject to condition that the Company will not avail any of the specified deductions/incentives under the Income Tax Act. The Company had elected to switch to the new lower tax rate structure with effect from the financial year 2019-20. Consequently, net impact of Rs 599.14 crores has been recognised in profit or loss on account of expensing of MAT credit balance and offset by tax credit on account of restatement of net deferred tax liabilities at the beginning of the previous year. 19. Other Non Financial Liabilities Rupees crores Particulars Non-Current Current 2021 2020 2021 2020 Contract Liabilities.............................................................................................. 108.56 138.15 647.08 711.76 Others.................................................................................................................. — — 1,580.56 710.46 Total Other Non Financial Liabilities ................................................................ 108.56 138.15 2,227.64 1,422.22 Others mainly include government dues, taxes payable, GST payable and salary deductions payable. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund. 18. Income Taxes (contd.)