Page 172 - Tata_Chemicals_yearly-reports-2017-18

31. Discontinued operations

(I) Disposal of urea and customised fertilisers business
During the previous year, the Company entered into an agreement with Yara Fertilisers India Private Limited (‘Yara India’) to transfer its
Urea Business (which comprises of manufacturing facilities for urea and customised fertilisers at Babrala, Uttar Pradesh), by way of a
slump sale.
On 12 January, 2018, the Company consummated the sale and transfer of its Urea and Customised Fertilisers Business to
Yara India as contemplated in the Scheme of Arrangement dated 10 August, 2016. The pre-tax gain of ` 1,279.39 crore for the year ended
31 March, 2018 is included under exceptional gain for discontinued operations.
(II) Disposal of Phosphatic Fertilisers business and Trading business of bulk and non-bulk fertilisers
The Company has entered into an agreement with IRC Agrochemicals Private Limited (“IRC”) and Indorama Holdings BV,
Netherlands (Parent company of IRC) to transfer its Phosphatic Fertilisers business and Trading business (which comprises of
manufacturing facilities for phosphatic fertilisers at Haldia Plant), by way of a slump sale for a consideration of ` 375.00 crore (subject
to certain adjustments). The effect of the transfer will be reflected in the financial information of the period in which the deal is
consummated post receipt of all the requisite regulatory approvals.
The financial performance and cash flows for Urea Business (till the date of sale) and Phosphatic Fertilisers business and Trading
business of bulk and non-bulk fertilisers:
(a) Analysis of profit from discontinued operations
` in crore
Particulars Year ended Year ended
31 March, 2018 31 March, 2017
Profit for the year from discontinued operations
Revenue from operations (footnote ‘i’) 4,086.91 4,616.80
Other income 0.34 0.04
4,087.25 4,616.84
Expenses
Depreciation and amortisation 12.58 40.28
Other expenses 3,636.95 4,390.97
Profit before exceptional item and tax 437.72 185.59
Exceptional gain (net)
Profit on sale of discontinued operation 1,279.39 -
Impairment of assets (footnote ‘ii’) (65.40) -
Profit before tax 1,651.71 185.59
Tax expense 167.60 72.12
Tax on sale of discontinued operations 341.62
Profit after tax 1,142.49 113.47
Footnotes:
(i) Revenue from operations includes subsidy income of ` 1,979.51 crore (2017: ` 2,012.42 crore)
(ii) The shortfall between the carrying value of net PPE and the recoverable value.

(b) Net cash flows attributable to the discontinued operations
` in crore
Particulars Year ended Year ended
31 March, 2018 31 March, 2017
Net cash (outflows)/inflows from operating activities 240.47 3.25
Net cash used in investing activities (29.58) (26.93)
Net cash (outflows)/inflows from financing activities (209.99) 23.88
Net cash inflows 0.90 0.20
170 Annual Report 2017-18