Heritage Foods Limited

Heritage Foods Limited 226 an asset or liability in a transaction that is not a business combination and, at the time of the transaction, a ff ects neither the accounting pro fi t nor taxable pro fi t or loss. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that su ffi cient taxable pro fi t will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable pro fi ts will allow the deferred tax asset to be recovered. Deferred tax is recognised in the consolidated statement of pro fi t and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the deferred tax is also recognised in other comprehensive income or directly in equity, respectively. Deferred tax assets and deferred tax liabilities are o ff set if a legally enforceable right exists to set o ff current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent it is reasonably certain that the Group will pay normal income tax during the speci fi ed period. Such asset is reviewed at each Consolidated Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the e ff ect that the Group will pay normal income tax during the speci fi ed period. Dividend distribution tax (DDT) Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as tax expense for the Group and all such taxes are recognised in the consolidated statement of changes in equity as part of the associated dividend payment. The Finance Act 2020 has repealed the Dividend Distribution Tax. Companies are now required to pay/ distribute dividend after deducting applicable taxes. The remittance of dividends outside India is also subject to withholding tax at applicable rates. h. Non-current assets held for sale and discontinued operations The Group classi fi es non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that signi fi cant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classi fi cation. For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance. The criteria for held for sale classi fi cation is regarded met only when the assets or disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets (or disposal groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The Group treats sale of the asset or disposal group to be highly probable when: • The appropriate level of management is committed to a plan to sell the asset (or disposal group), • An active programme to locate a buyer and complete the plan has been initiated (if applicable), • The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value, • The sale is expected to qualify for recognition as a completed sale within one year from the date of classi fi cation, and • Actions required to complete the plan indicate that it is unlikely that signi fi cant changes to the plan will be made or that the plan will be withdrawn. Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classi fi ed as held for sale are presented separately in the consolidated balance sheet. Property, plant and equipment and intangible assets once classi fi ed as held for sale are not depreciated or amortised. A disposal group quali fi es as discontinued operation if it is a component of an entity that either has been disposed of, or is classi fi ed as held for sale, and: • Represents a separate major line of business or geographical area of operations,