Tata Chemicals Limited

Regd. Office: Bombay House, 24 Homi Mody Street, Mumbai - 400 001
Statement of Standalone Audited Financial Results for the quarter and year ended 31 March, 2020
(` in crore)
Particulars Quarter Quarter Quarter Year Year
ended ended ended ended ended
31 31 31 31 31
March, December, March, March, March,
2020 2019 2019 2020 2019
(note 8) (Restated) (Restated) (Restated)
(note 2 (b) (note 2 (b), 2 (note 2 (b)
and 2 (c)) (c) and 8) and 2 (c))
1 Income
a) Revenue from operations 734.05 759.37 861.03 2920.29 3121.25
b) Other income 47.47 34.94 83.84 309.15 400.32
Total Income (1a+1b) 781.52 794.31 944.87 3229.44 3521.57

2 Expenses
a) Cost of materials consumed 121.73 151.55 136.07 541.90 566.77
b) Purchases of stock-in-trade 36.28 32.60 14.97 94.41 101.97
c) Changes in inventories of finished goods, work-in-progress and
stock-in-trade
(1.59) (27.03) 87.61 (76.41) 75.50
d) Employee benefits expense 80.57 62.03 61.16 250.28 226.85
e) Power and fuel 143.17 136.33 144.84 555.18 573.83
f) Freight and forwarding charges 100.74 95.29 120.49 390.06 476.10
g) Finance costs 3.85 5.10 18.14 43.37 86.14
h) Depreciation and amortisation expense 41.56 36.44 38.74 149.50 140.34
i) Other expenses 112.83 114.10 114.75 446.83 413.59
Total expenses (2a to 2i) 639.14 606.41 736.77 2395.12 2661.09
3 Profit before tax (1-2) 142.38 187.90 208.10 834.32 860.48
4 Tax expenses (note 5)
a) Current tax 32.45 42.48 59.86 194.37 244.73
b) Deferred tax (7.92) 8.37 (23.98) (31.87) (15.06)
Total tax expenses (4a + 4b) 24.53 50.85 35.88 162.50 229.67
5 Profit from continuing operations after tax (3-4) 117.85 137.05 172.22 671.82 630.81
6 Profit from discontinued operations before tax (note 2 (a) and 2 (c)) - - 83.35 - 293.18
7 Exceptional gain (net) from discontinued operations(note 2 (c) and 3) 6136.08 - - 6128.08 -
8 Tax expense of discontinued operations (note 2 (a) and 2(c)) (100.64) 20.80 16.67 (40.32) 69.15
9 Profit from discontinued operations after tax (6+7-8) 6236.72 (20.80) 66.68 6168.40 224.03
10 Profit for the period (5+9) 6354.57 116.25 238.90 6840.22 854.84
11 Other comprehensive income ('OCI')

(i) Items that will not be reclassified to the Statement of Profit and Loss
Changes in fair value of equity investments carried at fair value
- (594.08) (89.14) 302.37 (557.31) 268.59
through OCI
- Remeasurement of defined employee benefit plans (9.64) (12.13) (10.85) (50.55) (2.97)
(ii) Income Tax relating to above items 61.13 18.60 (34.61) 65.42 (32.63)
Total other comprehensive income (net of tax) (i+ii) (542.59) (82.67) 256.91 (542.44) 232.99
12 Total comprehensive income for the period (10+11) 5811.98 33.58 495.81 6297.78 1087.83
13 Paid-up equity share capital
(Face value : ` 10 per share) 254.82 254.82 254.82 254.82 254.82
14 Debt capital # (note 7) - 250.00
15 Debenture redemption reserve (note 7) - 240.00
16 Other equity 11722.50 12110.15
17 Earnings per share for continuing operations (in `)
- Basic and Diluted 4.63* 5.37* 6.76* 26.37 24.76
18 Earnings per share for discontinued operations (in `)
- Basic and Diluted 244.81* (0.82)* 2.62* 242.13 8.79
19 Earnings per share for continuing and discontinued operations (in `)
- Basic and Diluted 249.44* 4.55* 9.38* 268.50 33.55
20 Debt equity ratio Note 7 0.06
21 Debt service coverage ratio Note 7 1.70
22 Interest service coverage ratio Note 7 10.99
# Represents non convertible debentures
* Not annualised
See annexed segment information and accompanying notes to the
standalone financial results
 Tata Chemicals Limited
Standalone Audited Segmentwise Revenue, Results, Assets and Liabilities

(` in crore)
Particulars Quarter Quarter Quarter Year Year
ended ended ended ended ended
31 31 31 31 31
March, December, March, March, March,
2020 2019 2019 2020 2019
(note 8) (Restated) (Restated) (Restated)
(note 2 (b) and (note 2 (b), 2 (note 2 (b) and
2 (c)) (c) and 8) 2 (c))

1 Segment Revenue
a. Basic chemistry products * 703.39 729.23 852.84 2836.91 3071.92
b. Specialty products 30.65 21.16 6.87 74.39 42.32
734.04 750.39 859.71 2911.30 3114.24
Add: Unallocated 0.01 8.98 1.32 8.99 7.01
Total revenue from operations 734.05 759.37 861.03 2920.29 3121.25

2 Segment Results
a. Basic chemistry products 195.70 212.56 204.82 819.20 762.48
b. Specialty products (12.93) (8.09) (5.69) (31.99) (22.71)
Total segment results 182.77 204.47 199.13 787.21 739.77
Less :
(i) Finance costs 3.85 5.10 18.14 43.37 86.14
(ii) Net unallocated expenditure/(income) 36.54 11.47 (27.11) (90.48) (206.85)
Total profit before tax 142.38 187.90 208.10 834.32 860.48

3 Segment Assets
a. Basic chemistry products 2808.67 2638.57 2211.52 2808.67 2211.52
b. Specialty products 587.30 539.63 468.68 587.30 468.68
Total segment assets 3395.97 3397.27 2680.20 3395.97 2680.20
Add: Unallocated 10063.23 10888.79 11649.91 10063.23 11649.91
Total assets 13459.20 14286.06 14330.11 13459.20 14330.11

4 Segment Liabilities
a. Basic chemistry products 650.64 655.44 607.97 650.64 607.97
b. Specialty products 39.19 24.98 72.98 39.19 72.98
Total segment liabilities 689.83 680.42 680.95 689.83 680.95
Add: Unallocated 792.05 915.25 1348.47 792.05 1348.47
Total liabilities 1481.88 1595.67 2029.42 1481.88 2029.42

Information relating to discontinued operations as stated in note 2(a) and 2(c) to the standalone financial results:

Particulars Quarter Quarter Year

Quarter ended ended ended
Year
ended 31 31 31
ended
31 December, March, March,
31
March, 2019 2019 2019
March,
2020 (Restated) (Restated) (Restated)
2020
(note 8) (note 2 (b) and (note 2 (b), 2 (note 2 (b) and
2 (c)) (c) and 8) 2 (c))

1 Segment Revenue - - 478.73 - 2471.83

2 Segment Results (before tax) 6136.08 - 83.35 6128.08 293.18
3 Segment Assets - - 236.58 - 236.58
4 Segment Liabilities - - 172.30 - 172.30

* Includes sales to consumer product business (discontinued operations)

Particulars Quarter Quarter Year
Quarter ended ended ended
Year
ended 31 31 31
ended
31 December, March, March,
31
March, 2019 2019 2019
March,
2020 (Restated) (Restated) (Restated)
2020
(note 8) (note 2 (b) and (note 2 (b), 2 (note 2 (b) and
2 (c)) (c) and 8) 2 (c))
Inter segment revenue - - 280.74 - 887.67
 Tata Chemicals Limited
Standalone Audited Balance Sheet as at 31 March, 2020
(₹ in crore)
As at As at
30 31
March, March,
2020 2019
(Restated)
(note 2 (b))
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment 2156.39 1518.14
(b) Capital work-in-progress 402.13 527.16
(c) Investment property 21.11 21.72
(d) Right of use assets 23.04 -
(e) Goodwill 45.53 48.00
(f) Intangible assets 7.22 6.77
(g) Intangible assets under development 0.27 0.16
(h) Financial assets
(i) Investments in subsidiaries and joint venture 4758.06 4758.06
(ii) Other investments 1904.23 2461.55
(iii) Loans 0.92 1.13
(iv) Other financial assets 0.26 0.26
(i) Advance tax assets (net) 588.94 521.44
(j) Other non-current assets 184.23 167.21
Total non-current assets 10092.33 10031.60

(2) Current assets

(a) Inventories 701.17 627.68
(b) Financial assets
(i) Investments 1301.33 2,146.26
(ii) Trade receivables 139.84 184.84
(iii) Cash and cash equivalents 83.72 1049.75
(iv) Bank balances other than (iii) above 795.86 56.46
(v) Loans 0.23 0.40
(vi) Other financial assets 137.31 334.32
(c) Other current assets 207.41 135.38
Total current assets 3366.87 4535.09
Total assets 13459.20 14566.69

II. EQUITY AND LIABILITIES

(1) Equity
(a) Equity share capital 254.82 254.82
(b) Other equity 11722.50 12110.15
Total equity 11977.32 12364.97

(2) Liabilities
1 Non-current liabilities
(a) Financial liabilities
(i) Lease liabilities 10.41 13.46
(ii) Other financial liabilities 0.17 0.24
(b) Provisions 163.37 103.11
(c) Deferred tax liabilities (net) 59.55 189.79
(d) Other non-current liabilities 10.50 10.50
Total non-current liabilities 244.00 317.10

2 Current liabilities
(a) Financial liabilities
(i) Borrowings - 0.99
(ii) Trade payables
- Outstanding dues of micro enterprises and small enterprises 3.83 18.04
- Outstanding dues of creditors other than above 571.16 550.57
(iii) Other financial liabilities 187.04 933.98
(b) Other current liabilities 110.19 53.84
(c) Provisions 199.64 203.08
(d) Current tax liabilities (net) 166.02 124.12
Total current liabilities 1237.88 1884.62

Total liabilities 1481.88 2201.72

Total equity and liabilities 13459.20 14566.69

Tata Chemicals Limited
Statement of Cash Flows for the year ended 31 March, 2020
₹ in crore
Particulars Year ended Year ended
31 March, 31 March,
2020 2019
(Restated)
(note 2 (b))
A Cash flows from operating activities
Profit before tax from continuing operations 834.32 860.48
Profit before tax from discontinued operations 6,128.08 293.18
6,962.40 1,153.66
Adjustments for :
Depreciation and amortisation expense 149.50 143.23
Finance costs 43.37 97.72
Interest income (40.99) (67.45)
Dividend income (123.22) (104.76)
Gain on demerger of discontinued operation (net) (6,220.15) -
Net gain on sale of current investments (121.27) (187.15)
Provision for employee benefits expense 28.39 (10.48)
Provision for doubtful debts and advances/bad debts written off/(back) 9.40 7.65
Provision for contingencies (net) (5.33) 9.40
Provision for exceptional items 92.07 -
Foreign exchange gain (net) (2.74) (2.82)
(Profit)/ loss on assets sold or discarded (net) (8.34) 2.68
Operating profit before working capital changes 763.09 1,041.68
Adjustments for :
Trade receivables, other financial assets and other assets (129.52) 401.20
Inventories (73.49) (325.31)
Trade payables, other financial liabilities and other liabilities 85.56 107.11
Cash generated from operations 645.64 1,224.68
Taxes paid (net of refund) (218.27) (412.58)
Net cash generated from operating activities 427.37 812.10

B Cash flows from investing activities

Acquisition of property, plant and equipment (including capital work-in-progress) (698.29) (588.35)
Acquisition of intangible assets (including intangible asset under development) (3.02) (0.82)
Proceeds from sale of property, plant and equipment 11.88 4.40
Proceeds from sale of other non-current investments - 3.48
Proceeds from sale of current investments 8,330.19 15,094.45
Purchase of current investments (7,354.00) (17,053.56)
Investment in subsidiary - (2.50)
Bank balances not considered as cash and cash equivalent (737.41) 412.25
Payment on acquisition of business - (116.82)
(Payment on)/proceeds from sale of discontinued operations (8.00) 565.08
Interest received 42.79 73.45
Dividend received
- From subsidiaries 25.93 25.92
- From joint venture 72.24 58.43
- From others 25.05 20.41
Net cash used in investing activities (292.64) (1,504.18)

C Cash flows from financing activities

Proceeds from borrowings - 0.54
Repayment of borrowings (640.16) (773.38)
Repayment towards lease liabilities (8.43) (4.77)
Finance costs paid (73.48) (119.76)
Bank balances in dividend and restricted account (1.99) (3.08)
Dividends paid including distribution tax (377.26) (667.58)
Net cash used in financing activities (1,101.32) (1,568.03)

Net decrease in cash and cash equivalents (966.59) (2,260.11)

Cash and cash equivalents as at 1 April 1,049.75 3,303.29
Cash and cash equivalents on account of merger - 5.21
Exchange difference on translation of foreign currency cash and cash equivalents 0.56 0.32
Movement in cash and cash equivalents pertaining to discontinued operations - 1.04
Cash and cash equivalents as at 31 March 83.72 1,049.75
Tata Chemicals Limited

Notes to the standalone financial results :

1 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings
held on 15 May, 2020. The same have been audited by the Statutory Auditors who have issued an unqualified
opinion thereon.

2 a On 1 June, 2018, the Company consummated the sale and transfer of its Phosphatic Fertiliser Business located at
Haldia and the Trading Business comprising bulk and non-bulk fertilisers to IRC Agrochemicals Private Limited as per
Business Transfer Agreement dated 6 November, 2017.
b The Hon'ble National Company Law Tribunal ('NCLT'), Mumbai Bench on 23 April, 2020 approved the Scheme of
Merger by Absorption of Bio Energy Venture-1 (Mauritius) Pvt. Ltd. ('Bio'), a wholly owned subsidiary of the Company,
by the Company ('Scheme'), with an Appointed Date of 1 April 2019. In accordance with Ind AS 103, being a
common control transaction, previous periods have been restated with effect from April 1, 2018, being earliest
period presented. The impact of amalgamation on the above financial results is immaterial.

c The National Company Law Tribunal (“NCLT”), Mumbai and NCLT Kolkata, on 10 January, 2020 and 8 January, 2020
respectively, sanctioned the Scheme of Arrangement amongst Tata Consumer Products Limited (formerly Tata
Global Beverages Limited) ("TCPL") and the Company and their respective shareholders and creditors (“the
Scheme”) for the demerger of the Consumer Products Business Unit ("CPB") of the Company to TCPL. The Scheme
became effective on 7 February, 2020 upon filing of the certified copies of the NCLT Orders sanctioning the Scheme
with the respective jurisdictional Registrar of Companies. Pursuant to the Scheme becoming effective, the CPB is
demerged from the Company and transferred to and vested in TCPL with effect from 1 April, 2019 i.e. the Appointed
Date.
As per the clarification issued by Ministry of Corporate Affairs vide Circular no. 09/2019 dated August 21, 2019 (MCA
Circular), the Company has recognized the effect of the demerger on 1 April, 2019 and debited the fair value as at 1
April, 2019 of Demerged Undertaking i.e. fair value of net assets of CPB to be distributed to the shareholders of the
Company, amounting to ` 6,307,97 crore to the retained earnings in the Statement of Changes in Equity as dividend
distribution. The difference in the fair value and the carrying amount of net assets of CPB as at 1 April, 2019 is
recognised as gain on demerger of CPB in the Statement of Profit and Loss as an exceptional item, amounting to `
6,228.15 crore and ` 6,220.15 crore (net of transaction cost) during the quarter and year ended 31 March, 2020
respectively. The operations of CPB have been reclassified as discontinued operations.

The Company had recorded tax provision of ` 20.80 crore and ` 60.32 crore on the profits of CPB for the quarter and
nine months ended 31 December, 2019 respectively. This tax provision has been reversed in the current quarter
ended 31 March, 2020 as it has not been transferred to TCPL post de-merger of CPB.

3 Exceptional items from discontinued operations for the quarter and year ended 31 March, 2020 includes ` 92.07
crore in respect of provisions made, relating to the erstwhile fertilizer businesses, as per revised notifications issued by
the concerned department for change in rate of subsidy for previous years

4 Effective 1 April, 2019, the Company adopted Ind AS 116 "Leases", applied to all lease contracts existing on 1 April,
2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the
date of initial application. Accordingly, comparatives for the year ended 31 March, 2019 have not been
retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right of use assets
(ROU) of ` 4.03 crore and a lease liability of ` 4.35 crore by adjusting retained earnings, net of taxes of ` 0.21 crore.
The effect of this adoption is insignificant on the profit for the period and earnings per share.

5 During the quarter ended 30 September, 2019, the Company decided to exercise the option permitted under
Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from
the current financial year. Accordingly, the provision for income tax and deferred tax balances have been
recorded/ remeasured using the new tax rate and the Company had reversed deferred tax liabilities amounting to `
39.20 crores.

6 The Board of Directors has recommended a final dividend of 110 % (2019: 125 %) for the financial year 2019-20 ` 11.00
per share (2019: ` 12.50 per share) which is subject to approval of shareholders.

7 On July 2, 2019, the Company redeemed its Unsecured Redeemable Non-Convertible Debentures ('NCD') of ` 250
crores along with interest due and has consequently transferred the balance of Debenture Redemption Reserve to
the General Reserve. Accordingly, the said NCDs stand redeemed and are no longer listed.

Formula used for calculation of Ratios (Continuing operations):

a) Debt Equity Ratio = Debt / Equity
(Debt: Long-term borrowings +Current maturities of long term borrowings +Short-term borrowings)
(Equity: Shareholder's Funds)
b) Debt Service Coverage Ratio = Profit before Interest and Tax / (Interest + Principal repayments)
c) Interest Service Coverage Ratio = Profit before Interest and Tax / Interest
Tata Chemicals Limited

Notes to the standalone financial results :

8 Figures for the quarter ended 31 March, 2020 and the corresponding quarter ended in the previous year as reported
in these financial results are the balancing figures between audited figures in respect of the full financial year and
the published year to date figures upto the end of the third quarter of the relevant financial year.

9 In view of the lockdown across the country due to the outbreak of COVID pandemic, operations in many of our
locations (manufacturing, warehouses, offices, etc.) are scaled down or shut down in compliance with the directives
/ orders issued by the local Panchayat / Municipal Corporation / State / Central Government authorities.

As per our current assessment, no significant impact on carrying amounts of inventories, goodwill, intangible assets,
trade receivables, investments and other financial assets is expected, and we continue to monitor changes in future
economic conditions. The eventual outcome of the impact of the global health pandemic may be different from
those estimated as on the date of approval of these financial results.

10 Previous period figures have been regrouped to conform with the classification adopted in these financial results.

As per our report of even date attached

For and on behalf of
For B S R & Co. LLP TATA CHEMICALS LIMITED
Chartered Accountants
Firm's Registration No: 101248W/W - 100022

Vijay Mathur R. Mukundan

Partner Managing Director and CEO
Membership No. 046476
Place: Mumbai
Date: 15 May, 2020