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Integrated report Statutory reportS Financial StatementS
Standalone

Notes forming part of the Standalone Financial Statements

1. Corporate information products business (note 34) and merger of Bio
Energy Venture-1 (Mauritius) Pvt. Ltd. (note 36).
Tata Chemicals Limited (the ‘Company’) is a public limited
company domiciled in India. Its shares are listed on two 2.3 Critical accounting estimates, assumptions
stock exchanges in India; the Bombay Stock Exchange (‘BSE’) and judgements
and the National Stock Exchange (‘NSE’). The Company is
a diversified business dealing in basic chemistry products The preparation of the Standalone Financial
and specialty products. The Company has a global presence Statements requires management to make
with key subsidiaries in united States of America (‘uSA’), estimates, assumptions and judgments that affect
united Kingdom (‘uK’) and Kenya that are engaged in the the reported balances of assets and liabilities
manufacture and sale of soda ash, industrial salt and related and disclosures as at the date of the Standalone
products. During the year, the Company has demerged Financial Statements and the reported amounts of
consumer products business as per Scheme of Arrangement income and expense for the periods presented.
amongst Tata Consumer Products Limited (formerly Tata The estimates and associated assumptions are
Global Beverages Limited) (“TCPL”) and the Company and based on historical experience and other factors
their respective shareholders and creditors (note 34). that are considered to be relevant. Actual results
may differ from these estimates considering
2. Summary of basis of compliance, basis different assumptions and conditions.
of preparation and presentation, critical
accounting estimates, assumptions and Estimates and underlying assumptions are
judgements and significant accounting reviewed on an ongoing basis. Revisions to
policies accounting estimates are recognised in the period
2.1. Basis of compliance in which the estimates are revised and future
periods are affected.
The Standalone Financial Statements comply,
in all material aspects, with Indian Accounting The estimates and assumptions that have a
Standards (‘Ind AS’) notified under Section 133 of significant risk of causing a material adjustment to
the Companies Act, 2013 (‘the Act’) read with Rule the carrying values of assets and liabilities within
3 of the Companies (Indian Accounting Standards) the next financial year are discussed below.
Rules, 2015 and other relevant provisions of the Act.
2.3.1 Deferred income tax assets and liabilities
2.2. Basis of preparation and presentation Significant management judgment is required to
The Standalone Financial Statements have been determine the amount of deferred tax assets that
prepared on the historical cost basis, except for can be recognised, based upon the likely timing
certain financial instruments and defined benefit and the level of future taxable profits.
plans which are measured at fair value at the end The amount of total deferred tax assets could
of each reporting period. Historical cost is generally change if management estimates of projected
based on the fair value of the consideration given future taxable income or if tax regulations undergo
in exchange for goods and services. Fair value is the a change.
price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between 2.3.2 Useful lives of property, plant and equipment
market participants at the measurement date.
(‘PPE’) and intangible assets
All assets and liabilities have been classified as Management reviews the estimated useful lives
current or non-current as per the Company’s and residual value of PPE and Intangibles at the end
normal operating cycle and other criteria set out of each reporting period. Factors such as changes
in the Schedule III to the Act. in the expected level of usage, technological
developments and product life-cycle, could
Figures for the year ended 31 March, 2019 have significantly impact the economic useful lives and
been restated on account of demerger of consumer the residual values of these assets. Consequently,

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