Annual Report 2010-11

Annual Report 2010-11
9. CURRENT ASSETS, LOANS AND ADVANCES
i) Balances of some of the contractors/customers/suppliers/receivable/payable and deposits with
others are subject to confirmation/reconciliation and consequential adjustments, if any, which in
the opinion of management would not be material.
ii) In the opinion of the management, the value of Current Assets, Loans and Advances on
realisation in the ordinary course of business will not be less than the value at which these are
stated.
10. PROFIT AND LOSS ACCOUNT
Provision for Taxation has been made after considering provisions of the agreement between the
Republic of India and the Sultanate of Oman for the Avoidance of Double Taxation in respect of
dividend received from Oman India Fertilizer Company SAOC (OMIFCO) by the Permanent
Establishment of Society in the form of a branch in Oman.
11. SUBSIDY FROM GOVERNMENT OF INDIA
i) Nitrogenous fertilisers are under the concession scheme as notified by Government of India
(GOI) from time to time. The concession on nitrogenous fertilisers has been accounted for
keeping in view the practice in the industry, norms, parameters and guidelines fixed/followed by
Fertiliser Industry Co-ordination Committee (FICC) from time to time, pending notification by the
FICC. On fixation of final concession price, necessary adjustments, if any, has been made in the
accounts for the year in which such price is fixed.
ii) Concession on imported phosphatic fertilisers has been accounted for based on the concession
rate as notified by Govt. of India under Nutrient Based Subsidy Scheme (NBS).
iii) Freight Subsidy has been accounted for in terms of the schemes notified by GOI/FICC.
12. EMPLOYEE BENEFITS
A) Disclosures as required under Accounting Standard 15 (Revised) "Employee Benefits", issued by
the Institute of Chartered Accountants of India, in respect of Defined Benefit Obligations are as
under:-
i) The principal actuarial assumptions used are as below -
Year ended
31.03.2011
Year ended
31.03.2010
i) Method Used Projected Unit Credit Method
ii) Discount Rate 8.00% 8.00%
iii) Expected rate of return on Plan Assets-Gratuity Fund 9.45% 9.45%
iv) Expected rate of increase in Compensation Level 6.00% 6.00%
The estimate of future salary increase considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment
market.
56