Annual Report 2010-11

Annual Report 2010-11
vi) Experience adjustments
Year ended
31.03.2011
Year ended
31.03.2010
Gratuity
(i) Plan Assets- Loss/(Gain) - 159.27
(ii) Obligations- Loss/(Gain) 757.58 1,357.63
Leave Encashment (Obligations)-Loss/(Gain) (1,270.85) (2,028.76)
( ` inlakh)
B) Provision for long service award, farewell gift and travel to home town on superannuation
amounting to `527.05 lakhs (Previous Year Nil) have been made on the basis of actuarial
valuation at the year end and expensed to Profit & Loss Account.
C) The Society pays fixed contribution to provident fund at predetermined rates to a separate
trust, which invests the funds in permitted securities. Contribution to family pension scheme is
paid to the appropriate authorities. The contribution of `1,544.15 lakhs (Previous year
`1,882.50 lakhs) to the funds for the year is recognized as expense and is charged to the Profit &
Loss Account. The obligation of the Society is to make such fixed contribution and to ensure a
minimum rate of return to the members as specified by Government of India. As per report of
the actuary, liability is recognized for `126.18 lakhs (Previous Year Nil) for expected shortfall
between fair value of PF Trust Assets and present obligations determined as per actuarial
valuation made at the year end.
13. OPERATING LEASE
The Society's significant leasing arrangements are in respect of Operating Lease of premises for
offices of the Society and residential use of employees. These leasing agreements are usually
renewable on mutually agreed terms but are cancelable. These payments are shown as "Rent,
Rates and Taxes" in Schedule - 20 of 'Manufacturing, Administration, Distribution and Other
Expenses.'
14. PRIMARY SEGMENT - BUSINESS SEGMENT
i) Business Segment: The Society's operating business are organized and managed according to
the nature of products and services provided. The three identified segments are 'Urea and
Ammonia-Manufactured', 'Imported Fertilizers' and 'Other Products'. The 'Urea and Ammonia-
Manufactured' segment includes manufacture and marketing of Urea and Ammonia.
'Imported Fertilizers' segment includes trading of Imported OMIFCO Urea, Imported
Phosphatic/ Potasic Fertilizers. 'Other Products' segment includes Trading and Manufacturing
of bio-fertilizers, seeds, pesticides, indigenous fertilizers, agro inputs, argon gas etc.
ii) Segment Accounting Policies: Direct revenue and expenses are allocated to respective
segments. Indirect revenue and expenses are allocated amongst the segments on a reasonable
basis. Segment Assets include all operating assets used by segment comprising Fixed Assets,
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