Taxation
Tax expense for the current year FY 2015 stands at 54 Mn from 10 Mn last year, resulting in an increase in the effective rate of
taxation from 2% to over 6%. This is due to increase in the deferred
tax expense for the year offset by drop in current tax component as
well downward revisions to tax pertaining to prior years. Deferred
tax expense is a function of the difference in carrying amount of
assets considered for tax reporting purposes and for GAAP reporting
according to laid out Accounting Standards.
This is from Take solutions 2014-15AR. Can somebody explain in simple terms what the highlighted line means?
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