Page 229 - Tata_Chemicals_yearly-reports-2017-18

20. Provisions

` in crore
Particulars As at As at
31 March, 2018 31 March, 2017
Non-current
(a) Provision for employee benefits
(i) Pension and other post retirement benefits (note 38) 1,398.08 1,514.19
(ii) Others 4.29 3.82
1,402.37 1,518.01
(b) Other provisions (footnote 'i') 272.70 264.02
1,675.07 1,782.03
Current
(a) Provision for employee benefits
(i) Pension and other post retirement benefits (note 38) 47.78 42.35
(ii) Others 85.75 86.74 Integrated Report
133.53 129.09
(b) Other provisions (footnote 'i') 72.23 150.94
205.76 280.03
Footnote:
(i) Other provisions include:
` in crore
Particulars Asset Provision Provision Provision for Others (5) Total
retirement for emission for warranty restructuring
obligation (1) allowance (2) (3) expenses (4)
Balance as at 1 April, 2016 162.64 14.07 0.28 21.54 216.54 415.07
Provision pertaining to discontinued operations (3.12) - - - - (3.12)
Provisions recognised during the year 9.77 25.69 0.33 - 17.06 52.85
Payments/utilisations/surrenders during the year (5.93) (26.09) (0.22) (4.62) (2.24) (39.10) Statutory Reports
Exchange fluctuations (3.38) (2.11) - (2.94) (2.31) (10.74)
Balance as at 31 March, 2017 159.98 11.56 0.39 13.98 229.05 414.96
Provision pertaining to discontinued operations - - - - (92.29) (92.29)
Provisions recognised during the year 9.64 47.04 0.32 - 9.75 66.75
Payments/utilisations/surrenders during the year (2.45) (44.53) (0.15) (2.28) (0.04) (49.45)
Exchange fluctuations 0.83 1.79 - 1.79 0.55 4.96
Balance as at 31 March, 2018 168.00 15.86 0.56 13.49 147.02 344.93
Balance as at 31 March, 2017
Non-current 144.29 - - 13.98 105.75 264.02
Current 15.69 11.56 0.39 - 123.30 150.94
Total 159.98 11.56 0.39 13.98 229.05 414.96
Balance as at 31 March, 2018
Non-current 152.11 - - 13.49 107.10 272.70
Current 15.89 15.86 0.56 - 39.92 72.23 Financial Statements
Total 168.00 15.86 0.56 13.49 147.02 344.93
Nature of provisions:
(1) Provision for asset retirement obligation represents site restoration expense and decommissioning charges in India and cost towards
reclamation of the mine and land upon the termination of the partnership in USA. The timing of the outflows is expected to be within a
period of 1 to 96 years from the date of consolidated balance sheet.
(2) Provision for emission allowance represents obligations to surrender carbon emission allowances to the Environment agency in UK.
(3) Provision for warranty represents certain products that fail to perform satisfactorily during the warranty period. Provision made as at
respective year ends represents the amount of the expected cost of meeting such obligations of rectification/replacement. The timing of
the outflows is expected to be within a period of one year from the date of consolidated balance sheet.
(4) Provision for restructuring expenses represents costs to be incurred following the closure of plants in UK and Netherlands and committed
expenditure to demolish redundant power facilities owned by the Group in UK.
(5) Provision for others represents management’s best estimate of outflow of economic resources in respect of water charges, entry tax,
land revenue and other disputed items including direct taxes, indirect taxes and other claims. The timing of outflows is uncertain and will
depend on the cessation of the respective cases.
Consolidated Financial Statements 227