Page 224 - Tata Chemical Annual Report_2022-2023

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

Deferred tax is the tax expected to be payable or to settle the obligation, in respect of which a reliable transactions that give rise to equal taxable policy information that relates to immaterial
recoverable on differences between the carrying values estimate of the amount can be made. Provisions are and deductible temporary differences. Equal transactions, other events or conditions
of assets and liabilities in the Standalone Financial determined based on best estimate required to settle taxable and deductible temporary differences is immaterial and need not be disclosed.
Statements and the corresponding tax bases used in the obligation at the balance sheet date. When a may arise on initial recognition of an asset and Accounting policy information may be material
the computation of taxable profit and is accounted for provision is measured using the cash flows estimated liability in a transaction that is not a business because of the nature of the related transactions,
using the Standalone Balance Sheet liability method. to settle the present obligation, its carrying amount is combination and affects neither accounting other events or conditions, even if the amounts
Deferred tax liabilities are generally recognised for all the present value of those cash flows (when the effect nor taxable profit. For example, this may arise are immaterial. However, not all accounting policy
taxable temporary differences arising between the tax of the time value of the money is material). The increase upon recognition of a lease liability and the information relating to material transactions,
base of assets and liabilities and their carrying amount, in the provisions due to passage of time is recognised as corresponding right-of-use asset applying Ind other events or conditions is itself material.
except when the deferred income tax arises from the interest expense. AS 116 Leases at the commencement date of
initial recognition of an asset or liability in a transaction a lease. The amendments should be applied to - Amendments to Ind AS 8 Accounting Policies,
that is not a business combination and affects neither Provisions are reviewed at each balance sheet date and transactions that occur on or after the beginning Changes in Accounting Estimates and Errors—
accounting nor taxable profit or loss at the time of the adjusted to reflect the current best estimate. If it is no of the earliest comparative period presented. Definition of Accounting Estimates:
transaction. In contrast, deferred tax assets are only longer probable that the outflow of resources would be In addition, at the beginning of the earliest
recognised to the extent that it is probable that future required to settle the obligation, the provision is reversed. comparative period presented, a deferred tax The amendments replace the definition of a
taxable profits will be available against which the asset (provided that sufficient taxable profit is change in accounting estimates with a definition
temporary differences can be utilised. Contingent liabilities are disclosed when there is a available) and a deferred tax liability should also of accounting estimates. Under the new
possible obligation arising from past events, the existence be recognised for all deductible and taxable definition, accounting estimates are “monetary
The carrying value of deferred tax assets is reviewed at of which will be confirmed only by the occurrence or temporary differences associated with leases and amounts in financial statements that are subject
the end of each reporting period and reduced to the non-occurrence of one or more uncertain future events decommissioning obligations. to measurement uncertainty”. The amendments
extent that it is no longer probable that sufficient taxable not wholly within the control of the Company or a clarify the distinction between changes in
profits will be available to allow all or part of the asset to present obligation that arises from past events where it - Amendments to Ind AS 1 Presentation of Financial accounting estimates and changes in accounting
be recovered. is either not probable that an outflow of resources will Statements – Disclosure of Accounting Policies: policies and the correction of errors. Also, they
be required to settle or a reliable estimate of the amount clarify how entities use measurement techniques
Deferred tax is calculated at the tax rates that are expected cannot be made. The amendments replace all instances of the term and inputs to develop accounting estimates.
to apply in the period when the liability is settled or the ‘significant accounting policies’ with ‘material
asset is realised based on the tax rates and tax laws that Contingent assets are not disclosed in the Standalone accounting policy information’. Accounting These amendments are not expected to have a
have been enacted or substantially enacted by the end Financial Statements unless an inflow of economic policy information is material if, when considered significant impact on the Company's Standalone
of the reporting period. The measurement of deferred tax benefits is probable. together with other information included in an Financial Statements. This assessment is based
liabilities and assets reflects the tax consequences that entity’s financial statements, it can reasonably on currently available information and may
would follow from the manner in which the Company 2.23 Dividend be expected to influence decisions that the be subject to changes arising from further
expects, at the end of the reporting period, to cover or Final dividend on shares is recorded as a liability on primary users of general-purpose financial reasonable and supportable information being
settle the carrying value of its assets and liabilities. the date of approval by the shareholders and interim statements make on the basis of those financial made available to the company when it will
dividends are recorded as a liability on the date of statements. The supporting paragraph in Ind AS adopt the respective standards.
Deferred tax assets and liabilities are offset to the declaration by the Company’s Board of Directors. 1 are also amended to clarify that accounting
extent that they relate to taxes levied by the same tax
authority and there are legally enforceable rights to set 3. Recent Indian Accounting Standard (Ind AS)
off current tax assets and current tax liabilities within pronouncements which are not yet effective
that jurisdiction. On March 31, 2023, the Ministry of Corporate Affairs
(MCA) through notification, notified the amendments to
Current and deferred tax are recognised as an expense or existing standards which are effective for annual periods
income in the Standalone Statement of Profit and Loss, beginning after 1 April 2023. Key amendments relating
st
except when they relate to items credited or debited to the same where financial statements are required to
either in Other Comprehensive Income or directly in comply are:
equity, in which case the tax is also recognised in OCI or
directly in equity. - Amendments to Ind AS 12 Income Taxes—
Deferred Tax related to Assets and Liabilities
2.22 Provisions and contingencies
arising from a Single Transaction:
A provision is recognised when the Company has a
present obligation as a result of past events and it is Under the amendments, an entity does not
probable that an outflow of resources will be required apply the initial recognition exemption for

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