Page 192 - Tata_Chemicals_yearly-reports-2019-20

income or directly in equity, in which case the tax 2.23 Dividend
is also recognised in OCI or directly in equity. Final dividend on shares is recorded as a liability on
the date of approval by the shareholders and interim
Deferred tax assets include a credit for the dividends are recorded as a liability on the date of
Minimum Alternate Tax (‘MAT’) paid in accordance declaration by the Company’s Board of Directors.
with the tax laws, which is likely to give future
economic benefits in the form of availability of 2.24 Business combinations
set off against future income tax liability. MAT The Company accounts for the common control
asset is recognised as deferred tax assets in the transactions in accordance with the ‘pooling of
Standalone Balance Sheet when the asset can interest’ method prescribed under Ind AS 103
be measured reliably, and it is probable that the - Business Combination for common control
future economic benefit associated with the asset transactions and as per the provisions of respective
will be realised.
schemes approved by the regulators, where all the
assets and liabilities of transferor companies would
2.22 Provisions and contingencies
be recorded at the book value as at the Appointed
A provision is recognised when the Company has date.
a present obligation as a result of past events and
it is probable that an outflow of resources will 3. Recent Indian Accounting Standard (Ind AS)
be required to settle the obligation, in respect and note on COVID-19
of which a reliable estimate of the amount can 3.1 Recent accounting pronouncements which are
be made. Provisions are determined based on not yet effective
best estimate required to settle the obligation
at the Balance Sheet date. When a provision is Ministry of Corporate Affairs (“MCA”) notifies new
measured using the cash flows estimated to settle standard or amendments to the existing standards.
the present obligation, its carrying amount is the There is no such notification which would have
present value of those cash flows (when the effect been applicable from April 1, 2020.
of the time value of the money is material). The 3.2 Note on COVID-19
increase in the provisions due to passage of time
is recognised as interest expense. Provisions are In view of the lockdown across the country due
reviewed as at each reporting date and adjusted to the outbreak of COVID pandemic, operations in
to reflect the current estimate. many of the Company’s locations (manufacturing,
warehouses, offices, etc.) are scaled down or
Contingent liabilities are disclosed when there is shut down in compliance with the directives/
a possible obligation arising from past events, the orders issued by the local Panchayat/Municipal
existence of which will be confirmed only by the Corporation/State/Central Government authorities.
occurrence or non-occurrence of one or more
uncertain future events not wholly within the As per management’s current assessment,
control of the Company or a present obligation no significant impact on carrying amounts of
that arises from past events where it is either inventories, goodwill, intangible assets, trade
not probable that an outflow of resources will receivables, investments and other financial assets
be required to settle or a reliable estimate of the is expected, and management will continue to
amount cannot be made. monitor changes in future economic conditions.
The eventual outcome of the impact of the global
Contingent assets are not disclosed in the health pandemic may be different from those
Standalone Financial Statements unless an inflow estimated as on the date of approval of these
of economic benefits is probable. Standalone Financial Statements.

190 I INTEGRATED ANNuAL REPORT 2019-20