Page 282 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

using the projected unit credit method and for which operating profit/loss amounts are
and discounted at the current rate of evaluated regularly by the Managing Director and
return on a high quality corporate bond Chief Executive Officer (who is the Group’s chief
of equivalent term and currency to the operating decision maker) in deciding how to
liability, with actuarial valuations being allocate resources and in assessing performance.
carried out at each Balance Sheet date. The accounting policies adopted for segment
Actuarial gains and losses are recognised reporting are in conformity with the accounting
in OCI in the period in which they occur. policies of the Group. Segment revenue, segment
Changes in the present value of the expenses, segment assets and segment liabilities
defined benefit obligation resulting have been identified to segments on the basis
from plan amendments or curtailments of their relationship to the operating activities of
are recognised immediately in the the segment. Inter segment revenue is accounted
Consolidated Statement Profit and Loss as on the basis of transactions which are primarily
past service cost. determined based on market / fair value factors.
2.21 Termination benefits Revenue, expenses, assets and liabilities which
relate to the Group as a whole and are not allocable
Termination benefits are expensed at the earlier of to segments on a reasonable basis have been
when the Group can no longer withdraw the offer included under ‘unallocated revenue / expenses /
of those benefits and when the Group recognises assets / liabilities’.
cost for restructuring.
2.25 Income tax
2.22 Borrowing costs
Tax expense for the year comprises current and
Borrowing costs are interest and ancillary costs deferred tax. The tax currently payable is based
incurred in connection with the arrangement of on taxable profit for the year. Taxable profit differs
borrowings. General and specific borrowing costs from net profit as reported in the Statement
attributable to acquisition and construction of
qualifying assets is added to the cost of the assets of Profit and Loss because it excludes items of
upto the date the asset is ready for its intended income or expense that are taxable or deductible
use. Capitalisation of borrowing costs is suspended in other years and it further excludes items that are
and charged to the Consolidated Statement of never taxable or deductible. The Group’s liability
Profit and Loss during extended periods when for current tax is calculated using tax rates and
active development activity on the qualifying tax laws that have been enacted or substantively
assets is interrupted. All other borrowing costs are enacted by the end of the reporting period.
recognised in the Consolidated Statement of Profit Current tax assets and current tax liabilities are
and Loss in the period in which they are incurred. offset when there is a legally enforceable right to
set off the recognised amounts and there is an
2.23 Government grants intention to realise the asset or to settle the liability
Government grants and subsidies are recognised on a net basis.
when there is reasonable assurance that the Deferred tax is the tax expected to be payable or
Group will comply with the conditions attached recoverable on differences between the carrying
to them and the grants and subsidies will be values of assets and liabilities in the financial
received. Government grants whose primary statements and the corresponding tax bases
condition is that the Group should purchase, used in the computation of taxable profit and is
construct or otherwise acquire non-current accounted for using the balance sheet liability
assets are recognised as deferred revenue in the method. Deferred tax liabilities are generally
Consolidated Balance Sheet and transferred to recognised for all taxable temporary differences
the Consolidated Statement of Profit and Loss on arising between the tax base of assets and
systematic and rational basis over the useful lives liabilities and their carrying amount, except when
of the related asset. the deferred income tax arises from the initial
2.24 Segment reporting recognition of an asset or liability in a transaction
The operating segments are the segments for that is not a business combination and affects
which separate financial information is available neither accounting nor taxable profit or loss at

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