Page 164 - Kolte Patil AR 2019-20

Notes forming part of the standalone financial statements

VII) Fair value disclosures
Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or
indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).
The following table summarizes financial assets and liabilities measured at fair value on a recurring basis

(H in Lakhs)
Fair value as at
Particulars Fair value hierarchy
March 31, 2020 March 31, 2019
Financial assets
Mutual Funds 58 55 Level 1
Equity Shares 3 6 Level 1
Debentures 6,235 11,038 Level 2
Preference Shares 11,129 11,129 Level 2
Financial Liabilities - -

NOTE 40 - CURRENT TAX AND DEFERRED TAX
The income tax expense can be reconciled to the accounting profit as follows:
(H in Lakhs)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Profit Before tax 11,465 10,586
Enacted tax rate 25.17% 34.61%
Income tax calculated at enacted rate 2,885 3,664
Tax effect of income that is exempt from tax (674) (657)
Tax effect of expenses not deductible in determining tax profit 20 (193)
Tax effect due to change in enacted tax rate during the year 2,814 -
Income tax expense recognized in profit and loss 5,045 2,814

The tax rate used for the above reconciliation is the rate as applicable for the respective period payable by the entities in India on taxable
profits under India tax laws.
During the quarter ended September 30, 2019, the Company had decided to exercise the option prescribed in the Section 115BAA of
the Income Tax Act, 1961 and to pay tax at lower rate while computing the tax expense for the current financial year. The full impact of
this change was recognized in the Statement of Profit and Loss for the quarter and half year ended September 30, 2019. Accordingly, the
Company has recognized Provision for lncome Tax for the year ended March 31, 2020 at the lower rate and Deferred Tax Asset (net) has been
remeasured resulting in deferred tax expenses of H2,814 Lakhs for the year ended March 31, 2020.

Pursuant to the adoption of Ind AS 115, Revenue from Contract with Customers with effect from April 1, 2018, the Company has started
following ‘Completed Contract method’ for revenue recognition. However, for the purpose of computation of Current Income Tax expense
as per Income Tax Act, 1961 the Company recognizes revenue based on ‘Percentage Completion Method’. Hence for the purpose of Income
Tax computation, revenue from operations, cost of goods sold, profit before tax and profit after tax are H72,580 Lakhs, H47,364 Lakhs, H10,972
Lakhs and H8,721 Lakhs respectively.

162 | Kolte-Patil Developers Limited