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Notes forming part of onancial statements (Contd.)
Annual Report 2016-17
•
269
As at March 31, 2017, every percentage point increase / decrease in discount rate will affect the gratuity beneot obligation
by approximately
`
103.96 million /
`
127.93 million respectively.
As at March 31, 2017, every percentage point increase / decrease in rate of increase in compensation levels will affect
the gratuity beneot obligation by approximately
`
126.93 million /
`
104.81 million respectively.
Amounts for the current and previous year are as follows:
(In
`
Million)
As at
March 31, 2017
March 31, 2016
Plan assets
711.86
505.45
Deoned beneot obligation
(719.78)
(553.27)
(Deocit)
(7.92)
(47.82)
Experience adjustments on plan liabilities - /oss / (gain)
63.32
(76.65)
Experience adjustments on plan assets (/oss) / gain
-
17.90
30. Income taxes
A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate
to the proot before tax is summarized below:
For the year ended
March 31, 2017
(In
`
Million)
March 31, 2016
(In
`
Million)
Proot before tax
4,037.41
3,464.20
Enacted tax rate in India
34.61%
34.61%
Computed tax expense at enacted tax rate
1,397.27
1,198.89
Effect of exempt income
(122.81)
(140.17)
Effect of non-deductible expenses
12.37
27.60
Effect of concessions (Tax holidays)
(138.83)
(56.95)
Effect of concessions (R&D allowance)
(14.67)
(13.46)
Effect of unused tax losses not recognised as deferred tax assets
-
-
Effect of previously unrecognised unused tax losses now recognised as deferred tax
assets
-
(7.95)
Effect of diffferent tax rates for different heads of income
(15.50)
(6.68)
Others
(20.74)
(33.07)
Income tax expense
1,097.09
968.21
Note:
The Company beneots from the tax holidays available for units set up under the Special Economic =one Act, 2005.
These tax holidays are available for a period of ofteen years from the date of commencement of operation. Under the
SE= Scheme, the Unit which begins providing services on or after April 1, 2005 will be eligible for deduction of 100% of
proots or gains derived from export of services for the orst ove years, 50% of such proots or gains for a further period
of ove years and 50% of such proots and gains for the balance period of ove years subject to fulollment of certain
conditions.