Page 290 - Tata_Chemicals_yearly-reports-2019-20

balances partly in the current financial year and partly in subsequent periods. accordingly, the deferred tax balances have been re-
measured using the tax rate expected to be prevalent in the period in which the deferred tax balances are expected to reverse, and
the resultant impact has been recognised in the current period Consolidated Statement of profit and loss at the effective tax rate.
36. 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 group 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 Consolidated 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 Consolidated
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 Consolidated Statement of profit and loss 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 - 2.89
other expenses - 2,177.94
Profit before exceptional items, share of profit of joint ventures and tax - 293.18
Exceptional gain/(loss) (net)
gain on disposal of discontinued operation (note 36 (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 -
Share of profit of joint ventures (net of tax) (note 9(a)) 31.34 -
Profit before tax 6,159.42 293.18
less : Current tax (1.69) 69.01
less : deferred tax (38.63) 0.14
Profit after tax 6,199.74 224.03
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.

288 I Integrated annual report 2019-20