"We remain a partner of choice for financiers and continue to diversify our liability mix through reputed domestic and global institutions. Our continued investment in businesses where we have a clear 'Right to Win', has been the bedrock of our strategy, and we remain committed to this plan," said Dinanath Dubhashi, Managing Director & CEO, LTFH.
Under the new reduced tax guidelines, corporates that have taken higher provisions and created Deferred Tax Assets (DTA) at 34.94 per cent need to revise the tax rate to 25.17 per cent, leading to a one-time P&L (profit & loss) charge of 9.77 per cent, a company spokesperson said.
"Following this, LTFH is opting for lower CTR of 25.17 per cent leading to lower tax liability from FY20 onwards. As a part of its robust risk management framework, over the last 3 years, LTFH has implemented accelerated provisions to enhance PCR (provision coverage ratio).
"Consequently, Q2 FY20 results
reflect one time impact of Rs 473 crore due to reversal of DTA as on April 1, 2019," the spokesperson said.
In the second quarter of this fiscal, the government announced the reduction in corporate tax rate from 34.94 per cent from 25.17 per cent earlier. Stock of the company closed at Rs 85.35 on the BSE, down 0.23 per cent from previous close.