Page 294 - Tata_Chemicals_yearly-reports-2019-20

nClt Bengaluru Bench have been filed with the respective registrar of Companies and accordingly, the Scheme is effective from
February 1, 2020 with an appointed date of april 1, 2019. there is no impact of merger in the Consolidated Financial Statements.
(vi) during the year, the nClt, Mumbai Bench has approved the Scheme of Merger by absorption of Zero Waste agro organics limited
its (wholly-owned subsidiary of rallis) into rallis (‘the Scheme’) on February 22, 2020 from the appointed date of april 1, 2017.
the certified copy of the orders is yet to be filed with the registrar of Companies; however, there is no impact of merger in the
Consolidated Financial Statements.
(vii) the Hon’ble national Company law tribunal (‘nClt’), Mumbai Bench on april 23, 2020 approved the Scheme of Merger by absorption
of Bio energy Venture-1 (Mauritius) pvt. ltd. (‘Bio’), a wholly owned subsidiary of the Company, with the Company (‘Scheme’), with
an appointed date of april 1, 2019. there is no impact of merger in the Consolidated Financial Statements. post merger tCIpl has
become the wholly owned subsidiary of the Company.
(viii) Consequent to tata Industries limited (‘tIl’) obtaining approval of its shareholders at the general Meeting held on March 27, 2019,
the Company along with tata Sons private limited will exercise joint control over the key activities of tIl. accordingly, the investment
in tIl has been reclassified as a Joint Venture. the difference between fair value and carrying value of investment of ` 305.91 crore
has been accounted for as capital reserve in the Consolidated Financial Statements.

39. Leases
Change in accounting policy
except as specified below, the group has consistently applied the accounting policies to all periods presented in these Consolidated
Financial Statements. the group has applied Ind aS 116 - leases with the date of initial application of april 1, 2019. as a result, the
group has changed its accounting policy for lease contracts as detailed below.
the group has applied Ind aS 116 - leases using the modified retrospective approach, under which the cumulative effect of initial
application is recognised in retained earnings at april 1, 2019.
` in crore
Non-current Current Total
lease commitments as at March 31, 2019 (erstwhile finance leases) 13.58 5.48 19.06
adjustments on account of discontinued operation (2.39) (1.18) (3.57)
Contracts reassessed as lease contracts 196.93 101.38 298.31
Lease liabilities as on April 1, 2019 208.12 105.68 313.80
The impact of change in accounting policy on account of adoption of Ind AS 116 is as follows :
` in crore

Increase in lease liability 298.31
Increase in right of use assets (279.60)
Increase in deferred tax assets (1.84)
Impact on non controlling interest (2.19)
lease Impact in Investment in Joint Venture 0.27
Transition impact disclosed in retained earnings 14.95
Maturity analysis of lease liabilities
Maturity analysis – contractual undiscounted cash flows
less than one year 110.06
one to five years 184.71
More than five years 53.41
Total undiscounted lease liabilities at March 31, 2020 348.18
Discounted Cash flows
Current 87.42
non-Current 188.00
Lease liabilities as at March 31, 2020 275.42
expenses relating to short-term leases and low value assets have been disclosed under rent in note 33(e).
the incremental borrowing rate of 1.90% p.a. to 13.00% p.a has been applied to lease liabilities recognised in the Consolidated
Balance Sheet.

292 I Integrated annual report 2019-20