Heritage Foods Limited | 30th Annual Report 2021-22

30 th Annual Report 2021-22 Heritage Foods Limited 170 32. Income tax expense For the year ended 31 March 2022 31 March 2021 (a) Income tax expense reported in the Statement of Profit and Loss Tax expense comprises of: Current tax expense 343.01 500.37 Deferred tax expense/(benefit) (5.75) 9.85 337.26 510.22 The major components of income tax expense and the reconciliation of expected tax expense based on the domestic effective tax rate of the Company at 25.168% (31 March 2021: 25.168%) and the reported tax expense in the Standalone Statement of Profit and Loss is as follows: Reconciliation of tax expense and the accounting profit/(loss) multiplied by India’s tax rate For the year ended 31 March 2022 31 March 2021 Profit before tax 1,352.60 1,961.86 Expected tax expense at the Indian tax rate 25.168% (31 March 2021: 25.168%) 340.42 493.76 Tax effect of amounts which are not deductible/taxable in calculating taxable income: Effect of deductions allowed under Chapter VI-A of the Income Tax Act, 1961 (“IT Act, 1961) (4.86) (4.86) Effect of expenses not deductible under the IT Act, 1961 8.45 18.03 Effect of income not subject to tax under the IT Act, 1961 (1.07) (0.91) Others (5.68) 4.20 Income tax expense 337.26 510.22 33. Earnings per equity share For the year ended 31 March 2022 31 March 2021 Profit for the year 1,015.34 1,451.64 Weighted average number of equity shares outstanding during the year 46,398,000 46,398,000 Earnings per equity share (EPES) (in absolute ` terms) Nominal value per share equity share 5.00 5.00 Basic and Diluted EPES 21.88 31.29 The Company did not have any potential dilutive equity shares as on 31 March 2022 and 31 March 2021. 34. Exceptional item represents provision of ` 91.40 million created, on account of disputed liability mainly due to GST classification of flavored milk, being faced by the dairy sector. 35. Dividend The dividend amount per equity share proposed or declared in accordance with the provisions of Section 123 of the Act is as follows: For the year ended 31 March 2022 31 March 2021 Proposed final dividend on equity shares of ` 5 each * Per equity share (in absolute ` terms) 2.50 5.00 Amount 116.00 231.99 Interim dividend declared on equity shares of ` 5 each Per equity share (in absolute ` terms) 2.50 - Amount 116.00 - * The proposed final dividend, is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company and accordingly not recognized as a liability in accordance with the applicable accounting principles. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated)