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Note 20 non current provisions refer note 1 xiii for

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NOTE 20. NON-CURRENT PROVISIONSRefer Note 1 (XIII) for accounting policy on provisionsRefer Note 1 (XIV) for accounting policy on Site restoration provisionsParticularsAs atDecember 31, 2018As atDecember 31, 2017`Crore`CroreProvision for employee benefitsProvision for gratuity and staff benefit schemes (Refer Note - 37)103.36104.50Provision for long service award3.855.44Other ProvisionsProvision for Site Restoration32.3132.09TOTAL139.52142.03
NOTES TO THE FINANCIAL STATEMENTSfor the year ended December 31, 2018 (Contd.)200NOTE 20. NON-CURRENT PROVISIONS (Contd.)Note 20.1 - Movement of provisions during the year as required by Ind AS - 37 “Provisions, ContingentLiabilities and Contingent Asset” specified under Section 133 of the Companies Act, 2013:ParticularsAs atDecember 31, 2018As atDecember 31, 2017`Crore`CroreOpening Balance32.0930.82Reversal of provision during the year (net)(1.62)(0.05)Utilised during the year(0.09)(0.28)Unwinding of discount and changes in the discount rate1.931.60Closing Balance32.3132.09Provision for Site RestorationSite restoration expenditure is incurred on an ongoing basis until the closure of the site. The actual expenses mayvary based on the nature of restoration and the estimate of restoration expenditure.NOTE 21. INCOME TAXRefer Note 1 (XX) for accounting policy on TaxationReconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for December 31, 2018:ParticularsFor the year endedDecember 31, 2018For the year endedDecember 31, 2017`CroreIn %`CroreIn %Profit before tax1,494.291,298.36At India's statutory income tax rate522.1034.94%449.3634.61%Effect of Allowances for tax purpose- Investment allowance on new plant and machinery underSection 32 AC (Refer Note - 1 below)--(33.29)(2.56%)- Tax Holiday claim under Section 80-IA(52.29)(3.50%)(54.92)(4.23%)Effect of Non-Deductible expenses- Corporate social responsibility expenses7.130.48%7.550.58%- Others (including effect of change in tax rate)11.730.79%15.861.22%Effect of Tax Exempt Income - Dividend(0.38)(0.03%)(1.65)(0.13%)(33.81)(2.26%)(66.45)(5.12%)At the effective income tax rate488.2932.68%382.9129.49%Tax adjustments for earlier years (Refer Note - 2 below)(500.63)(33.50%)--Income tax expense reported in the Statement of Profit and Loss(12.34)(0.83%)382.9129.49%The tax rate used for reconciliation above is the corporate tax rate payable by corporate entities in India on taxableprofits underIndian tax law.1.The Company was eligible for Investment allowance on new plant and machinery which was applicable uptoassessment year 2017-2018.
NOTES TO THE FINANCIAL STATEMENTSfor the year ended December 31, 2018 (Contd.)Integrated ReportFinancial HighlightsBoard & Management ReportsFinancial Statements201NOTE 21. INCOME TAX (contd.)2.Tax adjustments for earlier yearsThe Company was entitled to incentives in the form of excise duty benefit for its Gagal Plant in the state ofHimachal Pradesh, in respect of Income Tax Assessment Years 2006-07 to 2015-16. The Company contendedin its income tax returns that the said incentives are in the nature of capital receipts, and hence not liable toincome tax. The Income Tax department had, for the assessment years 2006-07 to 2012-13, consistently notaccepted this position and appeals were filed by the Company against the orders of the Assessing officer,with the Commissioner of Income Tax – Appeals (CIT-A). The Company had received favourable order from theassessing officer in one instance (Assessment Year 2013-14), but considering the several unfavourable ordersby the tax department, the Company had up to December 31, 2017, classified the risk of an ultimate outflow of

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Balance Sheet, SEBI, Independent Director

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