419 FINANCIAL STATEMENTS | Consolidated Accounts 13. Income taxes (Continued) (f) Deferred tax assets/(liabilities) (net) (Continued) Rupees crores Particulars Balance as at 1st April, 2024 Recognised in profit or loss Recognised in OCI Recognised in business combination / disposal of subsidiaries Foreign exchange translation differences Balance as at 31st March, 2025 Deferred tax liabilities Property, plant and equipment and intangible assets 2,066.86 204.14 — — (5.67) 2,265.33 Undistributed profit of associates....................................... 104.68 29.91 7.91 — — 142.50 Others..................................................................................................... 242.41 63.46 19.01 — (0.19) 324.69 (a) 2,413.95 297.51 26.92 — (5.86) 2,732.52 Deferred tax assets Provision for employee benefits.......................................... 323.81 18.23 19.93 — (1.37) 360.60 Allowances for expected credit loss/net change in fair value of debt instruments at FVTOCI ................................................. 1,000.74 100.27 (28.07) — (0.19) 1,072.75 Carryforward tax losses............................................................ 375.16 (25.17) — — (0.07) 349.92 MAT credit............................................................................................ 0.62 (0.62) — — — — Unrealised gain on inter-company transactions (net) 188.30 31.62 — — — 219.92 Others..................................................................................................... 332.18 18.66 37.21 — 2.32 390.37 (b) 2,220.81 142.99 29.07 — 0.69 2,393.56 Net deferred tax assets/(liabilities) (b-a)...................... (193.14) (154.52) 2.15 — 6.55 (338.96) Balances of deferred tax assets/deferred tax liabilities are presented in balance sheet as below: Rupees crores Particulars 2026 2025 Deferred tax assets (net).................................................................................................................................................................................................................. 1,580.96 1,573.11 Deferred tax liabilities (net)............................................................................................................................................................................................................ 1,774.34 1,912.07 Net deferred tax assets/(liabilities) .......................................................................................................................................................................................... (193.38) (338.96) Pillar Two Income Taxes The OECD/G20 Inclusive Framework has introduced Pillar Two, which establishes a global minimum effective tax rate of 15% for multinational enterprise groups with consolidated revenues exceeding EUR 750 million. The Pillar Two framework is implemented through the Qualified Domestic Minimum Top up Tax (QDMTT), Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR) and is applicable from 1 January 2024 or later, subject to enactment in relevant jurisdictions. Based on an assessment of consolidated revenues, the Group falls within the scope of Pillar Two. In accordance with the amendments to Ind AS 12 – Income Taxes, the Group has applied the mandatory temporary exception from recognising and disclosing deferred tax assets and liabilities arising from the implementation of the Pillar Two rules. Accordingly, no deferred tax assets or liabilities have been recognised in respect of Pillar Two. Any tax arising under these rules will be recognised as current tax expense in the period in which the liability is incurred. The Group operates across multiple tax jurisdictions with differing statutory tax rates and tax regimes, including incentives and exemptions, which may result in effective tax rates being close to or below the minimum threshold in certain jurisdictions. The Group has performed a preliminary assessment of its potential exposure and has evaluated the availability of QDMTT and transitional safe harbour provisions, where applicable. As at the reporting date, no material Pillar Two top up tax liability has been recognised. The Group will continue to evaluate the impact of the GloBE rules and will recognise any resulting tax obligations in future periods as the assessments are finalised and obligations crystallise.
RkJQdWJsaXNoZXIy NTE5NzY=