MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

341 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS b) Income tax recognised in Other Comprehensive Income Rupees crores Particulars 2023 2022 Deferred Tax related to items recognised in other comprehensive income: Effective portion of gains/ (losses) on designated portion of hedging instruments in a cash flow hedge.............. (1.85) (1.61) Net change in fair value of investments in debt instruments at FVTOCI.......................................................................................... 23.31 0.30 Net change in fair value of investments in equity shares at FVTOCI................................................................................................... 0.37 (0.30) Remeasurement of defined benefit plans................................................................................................................................................................. 37.68 (35.92) Exchange differences in translating the financial statements of foreign operations — Associates................................ (14.30) (11.76) Total Deferred Tax ................................................................................................................................................................................................................. 45.21 (49.29) Current Tax related to items recognised in other comprehensive income: Net change in fair value of investments in equity shares at FVTOCI................................................................................................... (2.52) — Total Current Tax .................................................................................................................................................................................................................... (2.52) — Total Income Tax expense ............................................................................................................................................................................................... 42.69 (49.29) Classification of income tax recognised in other comprehensive income: Income taxes related to items that will not be reclassified to profit or loss................................................................................. 35.53 (36.22) Income taxes related to items that will be reclassified to profit or loss........................................................................................... 7.16 (13.07) Total .................................................................................................................................................................................................................................................... 42.69 (49.29) c) 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 2023 2022 Profit Before Tax ................................................................................................................................................................................................................... 14,060.23 9,361.77 Applicable Income Tax rate............................................................................................................................................................................................... 25.168% 25.168% Expected Income Tax expense........................................................................................................................................................................................ 3,538.68 2,356.17 Tax effect of adjustments to reconcile expected income tax expense to reported income tax expense: Effect of different tax rates in local and foreign tax jurisdictions........................................................................................................ (26.14) (51.70) Effect of income exempt from tax/non-taxable on compliance of conditions............................................................................. (801.17) (454.69) Effect of income chargable at specified tax rates .......................................................................................................................................... (255.67) (142.06) Effect of expenses/provisions that is non-deductible in determining taxable profit................................................................ 281.32 109.66 Unrecognised tax losses of previous year used to reduce current tax expense....................................................................... (63.45) (4.57) Effect of unused tax losses & tax offsets for which no deferred tax asset has been recognised............................... 253.53 265.44 Effect of (recognition)/utilisation of deferred tax on capital losses (net)....................................................................................... (41.70) 14.23 Write down/reversal of Deferred tax assets......................................................................................................................................................... — 16.31 Effect of net additional /(reversal) of provision in respect of prior years ..................................................................................... (163.23) 7.40 Others............................................................................................................................................................................................................................................... (36.42) (7.43) Income tax expense recognised in consolidated statement of profit and loss ................................................................... 2,685.75 2,108.76 13. Current Tax and Deferred Tax (contd.)