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1. Corporate information from these estimates under different assumptions and
conditions.
Tata Chemicals Limited (the ‘Company’) is a public limited
company domiciled in India. Its shares are listed on two stock Estimates and underlying assumptions are reviewed
exchanges in India; the Bombay Stock Exchange (‘BSE’) and on an ongoing basis. Revisions to accounting
the National Stock Exchange (‘NSE’). The Company and its estimates are recognised in the period in which the
subsidiaries (collectively the ‘Group’) is a diversified businesses estimates are revised and future periods are affected.
dealing in inorganic chemicals, fertilisers, other agri inputs,
consumer and nutritional solutions business sectors. The The estimates and assumptions that have a significant
Group has a global presence with key subsidiaries in United risk of causing a material adjustment to the carrying
States of America (USA), United Kingdom (UK) and Kenya that values of assets and liabilities within the next financial
are engaged in the manufacture and sale of soda ash, industrial year are discussed below.
salt and related products. 2.3.1 Impairment of goodwill Integrated Report
2. Summary of basis of compliance, basis of preparation and Goodwill is tested for impairment at least on an annual
presentation, critical accounting estimates, assumptions basis or more frequently, whenever circumstances
and judgements and significant accounting policies indicate that the recoverable amount of the cash
generating unit (‘CGU’) is less than its carrying value.
2.1 Basis of compliance
The impairment indicators, the estimation of expected
The Consolidated Financial Statements (‘CFS’) comply, future cash flows and the determination of the fair
in all material aspects, with Indian Accounting value of CGU require the Management to make
Standards (‘Ind AS’) notified under Section 133 of the significant estimates, assumptions and judgments
Companies Act, 2013 (‘the 2013 Act’) read with Rule concerning the identification and validation of
3 of Companies (Indian Accounting Standards) Rules, impairment indicators, fair value of tangible and
2015 and other relevant provisions of the Act. intangible assets, revenue growth rates and operating
margins used to calculate projected future cash flows,
2.2 Basis of preparation and presentation
relevant risk-adjusted discount rate, future economic
The CFS have been prepared on the historical cost and market conditions, etc. Statutory Reports
basis, except for certain financial instruments and
2.3.2 Deferred income tax assets and liabilities
defined benefit plans which are measured at fair value
at the end of each reporting period. Historical cost is Significant management judgment is required to
generally based on the fair value of the consideration determine the amount of deferred tax assets that can
given in exchange for goods and services. Fair value is be recognised, based upon the likely timing and the
the price that would be received to sell an asset or paid level of future taxable profits.
to transfer a liability in an orderly transaction between
The amount of total deferred tax assets could change
market participants at the measurement date.
if management estimates of projected future taxable
All assets and liabilities have been classified as current income or if tax regulations undergo a change.
or noncurrent as per the Group’s normal operating
Similarly, the identification of temporary differences
cycle and other criteria set out in the Schedule III to
pertaining to subsidiaries that are expected to reverse
the 2013 Act.
in the foreseeable future and the determination of
The Group’s opening Balance Sheet was prepared as the related deferred income tax liabilities, require
at 1 April, 2015 (‘Transition Date’), the Group’s date of the Management to make significant judgments, Financial Statements
transition to Ind-AS. estimates and assumptions.
2.3 Critical accounting estimates, assumptions and 2.3.3 Useful lives of property, plant and equipment
judgements (‘PPE’) and intangible assets
The preparation of the CFS requires management to Management reviews the estimated useful lives and
make estimates, assumptions and judgments that residual value of PPE and Intangibles at the end of
affect the reported balances of assets and liabilities and each reporting period. Factors such as changes in the
disclosures as at the date of the financial statements expected level of usage, technological developments,
and the reported amounts of income and expense for units-of-production and product life-cycle, could
the periods presented. significantly impact the economic useful lives and
the residual values of these assets. Consequently, the
The estimates and associated assumptions are based
future depreciation and amortisation charge could be
on historical experience and other factors that are
revised and may have an impact on the profit of the
considered to be relevant. Actual results may differ
future years.
Consolidated Financial Statements 199