Page 223 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Standalone

incremental borrowing rate specific to the lease or the interest payable to members at the rate declared annual leave and performance incentives which 2.19 Government grants
incremental borrowing rate for the portfolio as a whole. by the Government of India in respect of the Trust are expected to occur within twelve months after Government grants and subsidies are recognised when
administered by the Company. the end of the period in which the employee there is reasonable assurance that the Company will
Lease payments included in the measurement of the renders the related services. comply with the conditions attached to them and the
lease liability comprise the fixed payments, including For defined benefit schemes in the form of grants and subsidies will be received. Government
in-substance fixed payments and lease payments in an gratuity fund, provident fund, post-retirement The cost of compensated absences is accounted grants whose primary condition is that the Company
optional renewal period if the Company is reasonably medical benefits, pension liabilities (including as under: should purchase, construct or otherwise acquire non-
certain to exercise an extension option; directors’) and family benefit scheme, the cost current assets are recognised as deferred revenue in
of providing benefits is actuarially determined (a) In case of accumulating compensated the Standalone Balance Sheet and transferred to the
The lease liability is measured at amortised cost using the using the projected unit credit method, with absences, when employees render Standalone Statement of Profit and Loss on systematic
effective interest method. actuarial valuations being carried out at each service that increase their entitlement of and rational basis over the useful lives of the related asset.
balance sheet date. future compensated absences; and
The Company has elected not to recognise right-of-use 2.20 Segment reporting
assets and lease liabilities for short-term leases that have The retirement benefit obligation recognised (b) In case of non - accumulating
a lease term of 12 months or less and leases of low-value in the Standalone Balance Sheet represents the compensated absence, when the The operating segments are the segments for which
assets. The Company recognises the lease payments present value of the defined benefit obligation absences occur. separate financial information is available and for
associated with these leases as an expense on a straight- as reduced by the fair value of scheme assets. which operating profit/loss amounts are evaluated
line basis over the lease term. The Company applied a 2.16.3 Other long-term employee benefits regularly by the Managing Director and Chief Executive
single discount rate to a portfolio of leases of similar The present value of the said obligation is Compensated absences which are not expected Officer (who is the Company’s chief operating decision
assets in similar economic environment with a similar determined by discounting the estimated to occur within twelve months after the end of the maker) in deciding how to allocate resources and in
end date. future cash outflows, using market yields of period in which the employee renders the related assessing performance.
government bonds of equivalent term and services are recognised as a liability. The cost of
2.16 Employee benefits plans currency to the liability. providing benefits is actuarially determined using The accounting policies adopted for segment reporting
Employee benefits consist of provident fund, the projected unit credit method, with actuarial are in conformity with the accounting policies of the
Company. Segment revenue, segment expenses,
superannuation fund, gratuity fund, compensated The interest income / (expense) are calculated valuations being carried out at each balance segment assets and segment liabilities have been
absences, long service awards, post-retirement medical by applying the discount rate to the net defined sheet date. Long Service Awards are recognised identified to segments on the basis of their relationship
benefits, directors’ retirement obligations and family benefit liability or asset. The net interest income as a liability at the present value of the obligation to the operating activities of the segment. Inter segment
benefit scheme. / (expense) on the net defined benefit liability is at the balance sheet date. All gains/losses due to revenue is accounted on the basis of transactions which
recognised in the Standalone Statement of Profit actuarial valuations are immediately recognised
2.16.1 Post-employment benefit plans and Loss. in the Standalone Statement of Profit and Loss. are primarily determined based on market / fair value
factors. Revenue, expenses, assets and liabilities which
Defined contribution plans relate to the Company as a whole and are not allocable
Remeasurements, comprising of actuarial gains 2.17 Employee separation compensation
Payments to a defined contribution retirement and losses, the effect of the asset ceiling (if any), to segments on a reasonable basis have been included
benefit scheme for eligible employees in the are recognised immediately in the Standalone Compensation paid / payable to employees who have under ‘unallocated revenue / expenses / assets / liabilities’.
form of superannuation fund are charged as Balance Sheet with a corresponding charge or opted for retirement under a Voluntary Retirement
an expense as they fall due. Such benefits are credit to retained earnings through OCI in the Scheme including ex-gratia is charged to the Standalone 2.21 Income tax
classified as Defined Contribution Schemes as the period in which they occur. Remeasurements are Statement of Profit and Loss in the year of separation. Tax expense for the year comprises current and deferred
Company does not carry any further obligations, not reclassified to the Standalone Statement of tax. The tax currently payable is based on taxable profit for
apart from the contributions made. Profit and Loss in subsequent periods. 2.18 Borrowing costs the year. Taxable profit differs from net profit as reported
Borrowing costs are interest and ancillary costs incurred in the Standalone Statement of Profit and Loss because
Defined benefit plans Changes in the present value of the defined in connection with the arrangement of borrowings. it excludes items of income or expense that are taxable
Contributions to a Provident Fund are made to benefit obligation resulting from plan General and specific borrowing costs attributable to or deductible in other years and it further excludes items
Tata Chemicals Limited Employees’ Provident amendments or curtailments are recognised acquisition and construction of qualifying assets is added that are never taxable or deductible. The Company’s
Fund Trust, administered by the Company, and immediately in the Standalone Statement of to the cost of the assets upto the date the asset is ready liability for current tax is calculated using tax rates and
are charged to the Standalone Statement of Profit and Loss as past service cost. for its intended use. Capitalisation of borrowing costs is tax laws that have been enacted or substantively enacted
Profit and Loss as incurred. The Trust invests in suspended and charged to the Standalone Statement by the end of the reporting period.
specific designated instruments as permitted by 2.16.2 Short-term employee benefits of Profit and Loss during extended periods when
Indian law. The remaining portion is contributed The short-term employee benefits expected to active development activity on the qualifying assets is Current tax assets and current tax liabilities are offset
to the government administered pension fund. be paid in exchange for the services rendered by interrupted. All other borrowing costs are recognised in when there is a legally enforceable right to set off the
The Company is liable for the contribution and employees is recognised during the period when the Standalone Statement of Profit and Loss in the period recognised amounts and there is an intention to realise
any shortfall in interest between the amount the employee renders the service. These benefits in which they are incurred. the asset or to settle the liability on a net basis.
of interest realised by the investments and the include compensated absences such as paid

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