Page 88 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

Exposure to Currency Risk

The net carrying amounts, in Naira, of trade and other payables, excluding non-financial instruments, are denominated
in the following currencies. The amounts have been presented in Naira by converting the foreign currency amount at
the closing rate at the reporting date. Reconciliation of deferred tax asset/(liability)

2021 2020
Naira amount N'000 N'000
Naira 23,799,441 21,487,123

14. Taxation

N'000 N'000
14.1. Income Tax Expense
Current
Corporate income tax 72,922 402,833
Education tax 128,036 100,652
200,958 503,485
Deferred
Originating and reversing temporary differences 249,868 116,227
450,826 619,712

14.2. Current Tax Payables

At 1 April 629,255 345,083
Under provision in prior year - 125,771
Charges for the year 200,958 503,485
830,213 974,339
Payment during the year (629,255) (345,084)
200,958 629,255

14.3 Reconciliation of the Tax Expenses - Effective Tax Rate
Reconciliation between accounting profit and tax expense
Accounting profit 1,576,746 1,270,234
Tax at the applicable tax rate of 32% (2020:32%) 504,559 406,475

Tax effect of adjustments on taxable income;
Allowed income (10,058) -
Disallowed expenses 1,550,327 1,278,921
Retirement benefit paid - (74,967)
Minimum tax 72,922 402,833
Balancing charge 3,740 -
Capital allowances (1,920,532) (1,509,777)
200,958 503,485
Effective Tax Rate 13% 40%

World of Possibilities HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 89