Why companies show negatives taxes?

1

I have seen several Adani companies and majority of them are showing negative taxes, how does it possible?

image
image1643×119 11.6 KB

Some of you might say that they might have paid in advance some tax but what is this 86718% means like is it a joke or what or is it screener mistake?

1 Like
2

It could be the case of deferred taxes and their adjustment.

3

but why it is show much in adani stocks only ?

2 Likes
4

I haven’t analysed adani stocks in particular but deferred tax arises due to time difference and as a result either they will create DTA or DTL, basically either they pay tax in advance(DTA) and when they reverses it later on taxes might become negative or vice versa

Every company has some DTA/DTL but there might be cases that they are not as large as adani does and basic meaning is that deferred taxes are created due to differences in income tax rules and accounting rules

5

Does this also have any relations with tax loss carry forward??

I dont feel DTA/DTL adjustment have such a big impact?

6

Surely it could be the case of set off of previous losses with the current profits as well but that affects income taxes and not depreciation as there is no effect of loss set off in books of account other than on income taxes.

Full information can be found in notes to accounts of the related figures and tax calculations for income. Tax purposes as well

1 Like