Download the Annual Report for 2010-11. - kiocl limited

Year ended Year ended31-03-2011 31-03-2010100mine closure at Kudremukh in the Books of Accountis felt necessary.6. The 'mines & plant assets' in respect of discontinuedoperations at Kudremukh mines can be effectivelyutilised on relocation and/or disposed off. A substantialportion of such assets have been depreciated in fulland the realisable value is estimated to be higher thanthe carrying value. Hence there is no impairment lossto be recognised during the year.7. The accounting policy with respect to RailwayClaims receivable has been disclosed during the yearseparately although the same was being consistentlyfollowed by the Company. Railway claims are notcertain of receipt within a definite period of time.Hence, accounting for such claims on actual receiptis felt prudent.An item of Railway Claims, amounting to ` 226.56Lakhs, was accounted on accrual basis during the year2007-08. In order to confirm to the stated accountingpolicy, this amount has been reversed during theyear and considered as a Prior Period Adjustment.Consequently, the profit after Prior Period Adjustmenthas reduced to this extent.8. Present value of Future Obligations as at the BalanceSheet date as per Actuarial Valuations are:(a) Gratuity 4,705.18 4,021.99(b) Leave encashment (EL) 1,665.83 1,298.12(c) Leave encashment (HPL) 649.29 472.87(d) Leave Travel Concession 336.07 167.71Disclosure required as per Accounting Standard (AS)- 15 (Revised) on 'Employee Benefits" are appended.9. The provident fund of the employees is managedby the Kudremukh Iron Ore Company's Employees'Provident Fund Trust and is administered by thetrustees nominated by the Company. The rate ofinterest payable on the contribution is determined` in Lakhs