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Integrated Report Statutory Reports Financial Statements
1-59 60-146 Consolidated

Notes forming part of the Consolidated Financial Statements

1 Corporate Information 2.3 Critical accounting estimates, assumptions
and judgements
Tata Chemicals Limited (the ‘Company’ ) is a public limited
company domiciled in India. Its shares are listed on two The preparation of the CFS requires management
stock exchanges in India; the Bombay Stock Exchange to make estimates, assumptions and judgments
(‘BSE’) and the National Stock Exchange (‘NSE’). The that affect the reported balances of assets and
Company and its subsidiaries (collectively the ‘Group’) is a liabilities and disclosures as at the date of the
diversified businesses dealing in basic chemistry products Consolidated Financial Statements and the
and specialty products. The Group has a global presence reported amounts of income and expense for the
with key subsidiaries in United States of America (USA), periods presented.
United Kingdom (UK) and Kenya that are engaged in The estimates and associated assumptions are
the manufacture and sale of soda ash, industrial salt and based on historical experience and other factors
related products. During the previous year, the Company that are considered to be relevant. Actual results
had demerged consumer product business as per Scheme may differ from these estimates under different
of Arrangement amongst Tata Consumer Products Limited assumptions and conditions.
(formerly Tata Global Beverages Limited) ("TCPL") and the
Company and their respective shareholders and creditors Estimates and underlying assumptions are
(note 36). reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
2 Summary of basis of compliance, basis in which the estimates are revised and future
of preparation and presentation, critical periods are affected.
accounting estimates, assumptions and
judgements and significant accounting The estimates and assumptions that have a
policies significant risk of causing a material adjustment to
2.1 Basis of compliance the carrying values of assets and liabilities within
the next financial year are discussed below.
The Consolidated Financial Statements (‘CFS’)
comply, in all material aspects, with Indian 2.3.1 Impairment of goodwill, goodwill on
Accounting Standards (‘Ind AS’) notified under consolidation and intangible assets
Section 133 of the Companies Act, 2013 (‘the Act’ Goodwill and Intangible assets are tested for
or 'the 2013 Act') read with Rule 3 of Companies impairment at least on an annual basis or more
(Indian Accounting Standards) Rules, 2015 and frequently, whenever circumstances indicate that
other relevant provisions of the Act. the recoverable amount of the cash generating
unit (‘CGU’) is less than its carrying value. The
2.2 Basis of preparation and presentation
impairment indicators, the estimation of expected
The Consolidated Financial Statements have been future cash flows and the determination of the fair
prepared on the historical cost basis, except for value of CGU require the Management to make
certain financial instruments and defined benefit significant estimates, assumptions and judgments.
plans which are measured at fair value at the end These are in respect of revenue growth rates and
of each reporting period. Historical cost is generally operating margins used to calculate projected
based on the fair value of the consideration given future cash flows, relevant risk-adjusted discount
in exchange for goods and services. Fair value is rate, future economic and market conditions, etc.
the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction 2.3.2 Deferred income tax assets and liabilities
between market participants at the measurement Significant management judgment is required to
date. determine the amount of deferred tax assets that
All assets and liabilities have been classified as can be recognised, based upon the likely timing
current or noncurrent as per the Group’s normal and the level of future taxable profits.
operating cycle and other criteria set out in the The amount of total deferred tax assets could
Schedule III to the Act. change if management estimates of projected

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