Page 199 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Standalone

Notes forming part of the Standalone Financial Statements

1. Corporate information estimates, assumptions and judgments that affect
Tata Chemicals Limited (the ‘Company’) is a public the reported balances of assets and liabilities
limited company domiciled in India. Its shares are listed and disclosures as at the date of the Standalone
on two stock exchanges in India; the Bombay Stock Financial Statements and the reported amounts of
Exchange (‘BSE’) and the National Stock Exchange (‘NSE’). income and expense for the periods presented.
The Company is a diversified business dealing in basic The estimates and associated assumptions are
chemistry products and specialty products. The Company based on historical experience and other factors
has a global presence with key subsidiaries in United that are considered to be relevant. Actual results
States of America (‘USA’), United Kingdom (‘UK’) and Kenya may differ from these estimates considering
that are engaged in the manufacture and sale of soda ash, different assumptions and conditions.
industrial salt and related products.
Estimates and underlying assumptions are
2. Summary of basis of compliance, basis reviewed on an ongoing basis. Revisions to
of preparation and presentation, critical accounting estimates are recognised in the period
accounting estimates, assumptions and in which the estimates are revised and future
judgements and significant accounting periods are affected.
policies The estimates and assumptions that have a
significant risk of causing a material adjustment to
2.1 Basis of compliance
the carrying values of assets and liabilities within
The Standalone Financial Statements comply, the next financial year are discussed below.
in all material aspects, with Indian Accounting
Standards (‘Ind AS’) notified under Section 133 2.3.1 Deferred income tax assets and liabilities
of the Companies Act, 2013 (‘the Act’ or ‘the 2013 Significant management judgment is required to
Act’) read with Rule 3 of the Companies (Indian determine the amount of deferred tax assets that
Accounting Standards) Rules, 2015 and other can be recognised, based upon the likely timing
relevant provisions of the Act.
and the level of future taxable profits.
2.2. Basis of preparation and presentation The amount of total deferred tax assets could
The Standalone Financial Statements have been change if management estimates of projected
prepared on the historical cost basis, except for future taxable income or if tax regulations undergo
certain financial instruments and defined benefit a change.
plans which are measured at fair value at the end
of each reporting period. Historical cost is generally 2.3.2 Useful lives of property, plant and equipment
based on the fair value of the consideration given (‘PPE’) and intangible assets
in exchange for goods and services. Fair value is Management reviews the estimated useful lives
the price that would be received to sell an asset or and residual value of PPE and Intangibles at the end
paid to transfer a liability in an orderly transaction of each reporting period. Factors such as changes
between market participants at the measurement in the expected level of usage, technological
date. developments and product life-cycle, could
All assets and liabilities have been classified as significantly impact the economic useful lives and
current or non-current as per the Company’s the residual values of these assets. Consequently,
normal operating cycle and other criteria set out the future depreciation charge could be revised
in the Schedule III to the Act. and may have an impact on the profit of the future
years.
2.3 Critical accounting estimates,
assumptions and judgements 2.3.3 Employee benefit obligations
The preparation of the Standalone Financial Employee benefit obligations are determined
Statements requires management to make using actuarial valuations. An actuarial valuation

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