Page 164 - Kolte Patil AR 2019-20
P. 164

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                                          -                -                  

          The income tax expense can be reconciled to the accounting profit as follows:
                                                                                                     (H in Lakhs)
                                                                                 Year ended         Year ended
                                                                              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.

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