In a public sector company, the wage revision is due from 01-09-2011. As at 31st March 2012, the Management has almost concluded the wage settlement with the Trade unions representing the employees and a consensus on the percentage of revision of wages from 01-09-2011 has been arrived at. After this, the Agreement is to be entered into between the Management and the Trade Unions in the presence of the Labour Commissioner and there after approval by the Board and is to be placed before the Government for final approval, after which this is to be implemented.
In the Accounts for the year 2011-12, theCompany following the conservative principles of accounting and as per the applicable accounting standards, has provided the arrear amount in the Accounts, also based on the views of the statutory auditors. Also, no separate disclosure has been made in the Accounts regarding this, being of routine nature.
Similarly DA has been revised by the Central Government with effect from 01-01-2012, whereas the implementation has not been done as the related approval by the Board and Government Orders have not been issued as at 31-03-2012. In this case also the arrears have been provided, as per para 2 above.
The AG Auditors on their supplementary audit u/s 619(4)have taken a view that these amounts need not be provided as there is no contractual or legal obligation as on 31-03-2012 and as there is no approval by the Board or the Government as on 31-03-2012.
Request for an Expert view for placing before the C&AG.
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