Page 272 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

` in crore
Year ended Year ended
March 31, 2021 March 31, 2020
(b) The income tax expense for the year can be reconciled to the accounting profit as
follows:
Profit before tax from continuing operations 633.99 1,248.06
Income tax expenses calculated at 25.168 % (2020: 25.6256 %) (Company's domestic tax rate) 159.56 319.82
Differences in tax rates in foreign jurisdictions 17.49 (13.08)
Share of profit of equity accounted investees (6.62) 0.85
Effect of income that is exempt from taxation (10.06) (17.97)
Effect of not deductible expenses for tax computation 8.61 21.07
Effect of concessions (research and development and other allowances) (12.81) (52.14)
Effect of rate change (footnote 'I') - (39.20)
Others 6.70 4.72
162.87 224.07
Adjustments recognised in the current year in relation to the current tax of prior years on 1.39 (3.57)
account of completed assessments.
Alternative Minimum Tax - differential 19.37 2.01
Effect of unused tax losses and tax offsets not recognised as deferred tax assets / Utilisation 14.14 (2.86)
197.77 219.65
Footnote:
(i) During the quarter ended September 30, 2019, the Company decided to exercise the option permitted under Section 115BAA
of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the previous financial year.
Accordingly, the provision for income tax and deferred tax balances have been recorded/ remeasured using the new tax rate and the
Company had reversed deferred tax liabilities amounting to ` 39.20 crore.
36. Discontinued operations
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 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.

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