Page 212 - Tata_Chemicals_yearly-reports-2019-20

34. Discontinued operations
(I) Disposal of consumer products business
The National Company Law Tribunal (“NCLT”), Mumbai and NCLT Kolkata, on January 10, 2020 and January 8, 2020 respectively,
sanctioned the Scheme of Arrangement amongst Tata Consumer Products Limited (formerly Tata Global Beverages Limited) ("TCPL")
and the Company and their respective shareholders and creditors (“the Scheme”) for the demerger of the Consumer Products
Business unit ("CPB") of the Company to TCPL. The Scheme became effective on February 7, 2020 upon filing of the certified copies
of the NCLT Orders sanctioning the Scheme with the respective jurisdictional Registrar of Companies. Pursuant to the Scheme
becoming effective, the CPB is demerged from the Company and transferred to and vested in TCPL with effect from April 1, 2019 i.e.
the Appointed Date.

As per the clarification issued by Ministry of Corporate Affairs vide Circular no. 09/2019 dated August 21, 2019 (MCA Circular), the
Company has recognised the effect of the demerger on April 1, 2019 and debited the fair value as at April 1, 2019 of Demerged
undertaking i.e. fair value of net assets of CPB to be distributed to the shareholders of the Company, amounting to ` 6,307.97 crore to
the retained earnings in the Statement of Changes in Equity as dividend distribution. The difference in the fair value and the carrying
amount of net assets of CPB as at April 1, 2019 is recognised as gain on demerger of CPB in the Statement of Profit and Loss as an
exceptional item, amounting to ` 6,220.15 crore (net of transaction cost) during the year ended March 31, 2020. Accordingly, the
operations of CPB have been reclassified as discontinued operations for the year ended March 31, 2019 and comparative information
in the Statement of Profit and loss account has been restated in accordance with Ind AS 105.

(II) Disposal of Phosphatic fertiliser business and Trading business of bulk and non-bulk fertilisers
On June 1, 2018, the Company consummated the sale and transfer of its Phosphatic fertiliser business located at Haldia and the
Trading business comprising bulk and non-bulk fertilisers to IRC Agrochemicals Private Limited ("IRC") as per Business Transfer
Agreement dated November 6, 2017.
The financial performance and cash flows for discontinued operations till the effective date of sale:
(a) Analysis of profit from discontinued operations
` in crore
Year ended Year ended
March 31, 2020 March 31, 2019
(Restated)

Profit for the year from discontinued operations
Revenue from operations (footnote 'i') - 2,474.01
Expenses
Depreciation and amortisation - 2.89
Other expenses - 2,177.94
Profit before exceptional items and tax - 293.18
Exceptional gain / (loss)
Gain on disposal of discontinued operation (note 34 (c)) 6,220.15 -
Pertaining to Phosphatic fertiliser business and Trading business (footnote ‘ii’) (26.71) -
Pertaining to urea and customised fertiliser business (footnote ‘ii’) (65.36) -
6,128.08 -
Profit before tax 6,128.08 293.18
Less : Current tax (1.69) 69.01
Less : Deferred tax (38.63) 0.14
Profit after tax 6,168.40 224.03
Footnotes:
(i) Revenue from operations includes subsidy income of ` Nil (2019: ` 24.40 crore)
(ii) Includes provisions made, relating to the erstwhile fertiliser businesses, as per revised notifications issued by the concerned
department for change in rate of subsidy for previous years.

210 I INTEGRATED ANNuAL REPORT 2019-20