Page 269 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORT
STATEMENTS
REPORTS
Consolidated

Notes forming part of the Consolidated Financial Statements

1 Corporate Information that affect the reported balances of assets and
Tata Chemicals Limited (the ‘Company’ ) is a public limited liabilities and disclosures as at the date of the
company domiciled in India. Its shares are listed on two Consolidated Financial Statements and the
stock exchanges in India; the Bombay Stock Exchange reported amounts of income and expense for the
(‘BSE’) and the National Stock Exchange (‘NSE’). The periods presented.
Company and its subsidiaries (collectively the ‘Group’) is a The estimates and associated assumptions are
diversified businesses dealing in basic chemistry products based on historical experience and other factors
and specialty products. The Group has a global presence that are considered to be relevant. Actual results
with key subsidiaries in United States of America (‘USA’), may differ from these estimates under different
United Kingdom (‘UK’) and Kenya that are engaged in assumptions and conditions.
the manufacture and sale of soda ash, industrial salt and Estimates and underlying assumptions are
related products. 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
the carrying values of assets and liabilities within
2.1 Basis of compliance the next financial year are discussed below.
The Consolidated Financial Statements (‘CFS’) 2.3.1 Impairment of goodwill, goodwill on
comply, in all material aspects, with Indian consolidation and other intangible assets
Accounting Standards (‘Ind AS’) notified under
Section 133 of the Companies Act, 2013 (‘the Act’ Goodwill and other Intangible assets are tested
or ‘the 2013 Act’) read with Rule 3 of Companies for 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 2.3.2 Deferred income tax assets and liabilities
paid to transfer a liability in an orderly transaction
between market participants at the measurement Significant management judgment is required to
date. determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
All assets and liabilities have been classified as and the level of future taxable profits.
current or noncurrent as per the Group’s normal
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
future taxable income or if tax regulations undergo
2.3 Critical accounting estimates, a change.
assumptions and judgements Similarly, the identification of temporary
The preparation of the CFS requires management differences pertaining to subsidiaries that are
to make estimates, assumptions and judgments expected to reverse in the foreseeable future and

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