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1. Corporate information Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
Tata Chemicals Limited (the ‘Company’) is a public limited
company domiciled in India. Its shares are listed on two stock estimates are recognised in the period in which the
estimates are revised and future periods are affected.
exchanges in India; the Bombay Stock Exchange (‘BSE’) and the
National Stock Exchange (‘NSE’). The Company is a diversified The estimates and assumptions that have a significant
business dealing in inorganic chemicals, fertilisers, other agri risk of causing a material adjustment to the carrying
inputs, consumer and nutritional solutions business sectors. values of assets and liabilities within the next financial
The Company has a global presence with key subsidiaries in year are discussed below.
United States of America (‘USA’), United Kingdom (‘UK’) and
2.3.1 Deferred income tax assets and liabilities
Kenya that are engaged in the manufacture and sale of soda
ash, industrial salt and related products. Significant management judgment is required to
determine the amount of deferred tax assets that can
2. Summary of basis of compliance, basis of preparation and Integrated Report
presentation, critical accounting estimates, assumptions be recognised, based upon the likely timing and the
level of future taxable profits.
and judgements and significant accounting policies
The amount of total deferred tax assets could change
2.1 Basis of compliance
if management estimates of projected future taxable
The financial statements comply, in all material aspects, income or if tax regulations undergo a change.
with Indian Accounting Standards (‘Ind AS’) notified
under Section 133 of the Companies Act, 2013 (‘the 2.3.2 Useful lives of property, plant and equipment
(‘PPE’) and intangible assets
2013 Act’) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and other relevant Management reviews the estimated useful lives and
provisions of the Act. residual value of PPE and Intangibles at the end of
each reporting period. Factors such as changes in the
2.2 Basis of preparation and presentation
expected level of usage, technological developments
The financial statements have been prepared on and product life-cycle, could significantly impact the
the historical cost basis, except for certain financial economic useful lives and the residual values of these
instruments and defined benefit plans which are assets. Consequently, the future depreciation charge Statutory Reports
measured at fair value at the end of each reporting could be revised and may have an impact on the profit
period. Historical cost is generally based on the fair of the future years.
value of the consideration given in exchange for
2.3.3 Employee benefit obligations
goods and services. Fair value is the price that would
be received to sell an asset or paid to transfer a liability Employee benefit obligations are determined using
in an orderly transaction between market participants actuarial valuations. An actuarial valuation involves
at the measurement date. making various assumptions that may differ from
actual developments. These include the estimation of
All assets and liabilities have been classified as current
the appropriate discount rate, future salary increases
or non-current as per the Company’s normal operating
and mortality rates. Due to the complexities involved in
cycle and other criteria set out in the Schedule III to
the 2013 Act. the valuation and its long-term nature, the employee
benefit obligation is highly sensitive to changes in
The Company’s opening Balance Sheet was prepared these assumptions. All assumptions are reviewed at
as at 1 April, 2015 (‘Transition Date’), the Company’s each reporting date.
date of transition to Ind-AS.
2.3.4 Provisions and contingencies Financial Statements
2.3 Critical accounting estimates, assumptions and
judgements From time to time, the Company is subject to legal
proceedings, the ultimate outcome of each being
The preparation of the financial statements requires subject to uncertainties inherent in litigation. A
management to make estimates, assumptions and provision for litigation is made when it is considered
judgments that affect the reported balances of assets probable that a payment will be made and the amount
and liabilities and disclosures as at the date of the can be reasonably estimated. Significant judgement
financial statements and the reported amounts of is required when evaluating the provision including,
income and expense for the periods presented. the probability of an unfavorable outcome and the
The estimates and associated assumptions are ability to make a reasonable estimate of the amount
based on historical experience and other factors that of potential loss. Litigation provisions are reviewed
are considered to be relevant. Actual results may at each accounting period and revisions made for
differ from these estimates considering different the changes in facts and circumstances. Contingent
assumptions and conditions. liabilities are disclosed in the notes forming part of

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