Page 176 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

Current and deferred tax are recognised as an 2.23 Dividend
expense or income in the Standalone Statement Final dividend on shares is recorded as a liability
of Profit and Loss, except when they relate to items on the date of approval by the shareholders and
credited or debited either in other comprehensive interim dividends are recorded as a liability on the
income or directly in equity, in which case the tax date of declaration by the Company’s Board of
is also recognised in OCI or directly in equity. Directors.
2.22 Provisions and contingencies 2.24 Business combinations

A provision is recognised when the Company has The Company accounts for the common control
a present obligation as a result of past events and transactions in accordance with the ‘pooling of
it is probable that an outflow of resources will interest’ method prescribed under Ind AS 103
be required to settle the obligation, in respect - Business Combination for common control
of which a reliable estimate of the amount can transactions and as per the provisions of respective
be made. Provisions are determined based on schemes approved by the regulators, where all the
best estimate required to settle the obligation assets and liabilities of transferor companies would
at the Balance Sheet date. When a provision is be recorded at the book value as at the Appointed
measured using the cash flows estimated to settle date.
the present obligation, its carrying amount is the
present value of those cash flows (when the effect 3. Recent Indian Accounting Standard (Ind AS)
of the time value of the money is material). The and note on COVID-19
increase in the provisions due to passage of time 3.1 Recent accounting pronouncements
is recognised as interest expense. Provisions are which are not yet effective
reviewed as at each reporting date and adjusted Ministry of Corporate Affairs (“MCA”) notifies new
to reflect the current estimate. standard or amendments to the existing standards.
Provisions are reviewed at each Balance Sheet There is no such notification which would have
date and adjusted to reflect the current best been applicable from April 1, 2021.
estimate. If it is no longer probable that the
outflow of resources would be required to settle 3.2 Note on COVID-19
the obligation, the provision is reversed. The production of soda ash, sodium bicarbonate
and specialty products operations has recovered
Contingent liabilities are disclosed when there is after the initial phases of the lockdown as
a possible obligation arising from past events, the customers’ own operations recommenced.
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more The Company has taken into account potential
uncertain future events not wholly within the impacts of COVID-19 in the preparation of the
control of the Company or a present obligation Standalone Financial Statements. Based on the
that arises from past events where it is either information currently available there is no material
not probable that an outflow of resources will impact on carrying amounts of inventories,
be required to settle or a reliable estimate of the goodwill, intangible assets, trade receivables,
amount cannot be made. investments and other financial assets though
management continues to monitor changes
Contingent assets are not disclosed in the in future economic conditions. The impact of
Standalone Financial Statements unless an inflow COVID-19 on the Standalone Financial Statements
of economic benefits is probable. may differ from that estimated as at the date of
approval of these Standalone Financial Statements.

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