Page 134 - CCL AR 2017 Final

29. FINANCE COSTS Note 2017 2016
(Rupees in ‘000)
Islamic banks
Mark-up on long-term financing 132,887 11,035
Mark-up on short-term borrowings 433 -
Bank charges and commission 317 94
133,637 11,129

Conventional banks
Mark-up on long-term financing 21,540 27,286
Mark-up on short-term borrowings 22,586 -
Bank charges and commission 9,651 4,516
53,777 31,802
Interest on workers’ profits participation fund 19.1 801 777
188,215 43,708

30. TAXATION

30.1 In view of the tax exemption on investment in Khyber Pakhtunkhwa and Baluchistan provinces under
clause 126L of Part I of the Second Schedule to the Income Tax Ordinance, 2001, profits and gains are
exempted on line – II. For this purpose, separate records have been maintained for both lines. Provision
for Alternative Corporate Tax under section 113C of the Income Tax Ordinance, 2001 has been made in
these financial statements to the extent applicable.

30.2 Reconciliation between tax expense and accounting profit
2017 2016
(Rupees in ‘000)
Accounting profit before taxation 2,509,791 2,051,397

Tax at applicable rate of 31% (2016: NTR 32%) 778,035 656,447
Effect of Alternative Corporate Tax (172,622) -
Super tax - 51,060
605,413 707,507
Tax effects of:
- income taxed at reduced rates 4,065 2,697
- income taxed under final tax regime 11,434 (167,855)
- income exempt from tax (321,607) -
- tax credit (33,164) (12,731)
- prior year (37,165) 5,943
- expenses that are inadmissible in determining
taxable income - net (76,961) 70,483
- temporary differences 401,214 40,161
553,229 646,205

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