Notes to the Financial Statements
For the year ended 30 September
Orica Limited 83
2009 2008 2009 2008
% % $m $m
23. Minority interests in controlled entities
Ordinary share capital of controlled entities held by
minority interests in:
Altona Properties Pty Ltd 37.4 37.4 - -
Ammonium Nitrate Development and Production Limited 0.1 0.1 - -
Bamble Mekaniske Industri AS 40.0 40.0 0.3 0.3
Beijing Ruichy Minova Synthetic Material Company Limited 45.0 45.0 1.5 1.5
Bronson & Jacobs International Co. Ltd 51.0 51.0 - -
CJSC (ZAO) Carbo-Zakk (1) 6.3 6.3 0.1 0.1
Deco-Pro China Limited (3) - - - -
Dyno NitroMed AD 40.0 40.0 2.6 2.6
Dyno Nobel VH Company LLC 49.0 49.0 1.0 0.8
Emirates Explosives LLC 35.0 35.0 2.1 2.1
Explosivos de Mexico S.A. de C.V. 1.3 1.3 - -
GeoNitro Limited 40.0 40.0 0.3 0.3
Hunan Orica Nanling Civil Explosives Co., Ltd (4) 49.0 - 9.0 -
Minova Ksante Sp. z o.o. (2) - 30.0 - 0.6
Minova MineTek Private Limited 24.0 24.0 0.2 0.2
Minova Ukraine OOO (1) (3) 10.0 10.0 0.3 0.3
Nitro Asia Company Inc. 41.6 41.6 0.1 0.1
Northwest Energetic Services LLC (1) 48.7 48.7 1.8 1.8
OOO Minova TPS (1) 6.3 6.3 - -
Orica Blast & Quarry Surveys Ltd 25.0 25.0 0.6 0.6
Orica-CCM Energy Systems Sdn Bhd 45.0 45.0 0.6 0.6
Orica-GM Holdings Ltd 49.0 49.0 12.6 12.6
Orica Colombia S.A. 8.0 8.0 - -
Orica Eesti OU 35.0 35.0 2.6 2.6
Orica Kazakhstan Joint Stock Company (2) - 23.0 - 2.2
Orica Mining Services Peru S.A. (2) 0.9 49.5 - 4.1
Orica Nitrates Philippines Inc 4.0 4.0 0.2 0.2
Orica Nitro Patlayici Maddeler Sanayi ve Ticaret Anonim Sirketi 49.0 49.0 1.7 1.7
Orica Philippines Inc 9.9 9.9 0.2 0.2
Orica (Weihai) Explosives Co Ltd 20.0 20.0 6.1 6.1
PT Kaltim Nitrate Indonesia 10.0 10.0 2.9 1.1
Sprengmittelvertrieb in Bayern GmbH 49.0 49.0 0.1 0.1
Teradoran Pty Ltd 33.0 33.0 - -
TOO "Minova Kasachstan" 40.0 40.0 0.5 0.5
47.4 43.3
Minority interests in shareholders' equity at balance date is as follows:
Contributed equity 47.4 43.3
Reserves 0.5 15.5
Retained earnings 64.2 38.1
112.1 96.9
(1) Minority interests purchased by Orica during the 2008 year.
(2) Minority interests purchased by Orica during the 2009 year.
(3) Minority interests acquired through new acquisitions by Orica during the 2008 year.
(4) Entity commenced in 2009.

For the year ended 30 September
84 Orica Limited
2009 2008 2009 2008
Notes $m $m $m $m
24. Total equity reconciliation
Total equity at the beginning of the year 4,318.4 2,627.6 2,907.3 1,543.3
Total changes recognised in statements of recognised income and expense 84.2 781.0 311.8 497.7
Transactions with owners as owners
Dividends paid (25) (340.5) (284.5) (340.5) (284.5)
Distributions paid (25) (37.5) (41.5) (37.5) (41.5)
Less tax credit on Step-Up Preference Securities distributions 9.4 13.4 9.4 13.4
Share based payments reserve movements 8.1 6.5 - -
Equity reserve arising from purchase of minorities (68.8) 1.0 - -
Total changes in contributed equity (21) (15.7) 1,178.9 (15.7) 1,178.9
Total changes in minority interest (23) 15.2 36.0 - -
Total equity at end of year 3,972.8 4,318.4 2,834.8 2,907.3

For the year ended 30 September
Orica Limited 85
2009 2008
$m $m
25. Dividends and distributions
Dividends paid or declared in respect of the year ended 30 September were:
Ordinary shares
interim dividend of 39 cents per share, 35.9% franked at 30%, paid 4 Jul 2008 122.1
interim dividend of 40 cents per share, 35% franked at 30%, paid 3 Jul 2009 142.5
final dividend of 53 cents per share, 32.08% franked at 30%, paid 14 Dec 2007 162.4
final dividend of 55 cents per share, 36.36% franked at 30%, paid 5 Dec 2008 198.0
Cumulative non-redeemable 5% preference shares (1)
final dividend of 2.5 cents per share, 32.08% franked at 30%, paid 18 Jan 2008 0.05
Distributions paid in respect of the year ended 30 September were:
Step-Up Preference Securities
distribution at 7.8133% per annum, per security, unfranked, paid 30 Nov 2007
for the period from 31 May 2007 to 29 Nov 2007 19.6
distribution at 8.7317% per annum, per security, unfranked, paid 2 Jun 2008
for the period from 30 Nov 2007 to 31 May 2008 21.9
distribution at 9.38% per annum, per security, unfranked, paid 1 Dec 2008
for the period from 31 May 2008 to 29 Nov 2008 23.5
distribution at 5.63% per annum, per security, unfranked, paid 1 Jun 2009
for the period from 30 Nov 2008 to 31 May 2009 14.0
Dividends paid in cash or satisfied by the issue of shares under the dividend
reinvestment plan during the period were as follows:
paid in cash 294.7 155.2
satisfied by issue of shares 15.6 129.4
Dividends satisfied by the purchase of shares on market for dividend reinvestment plan (2) 30.2 -
Distributions paid in cash 37.5 41.5
No distributions were satisfied by the issue/purchase of shares.
plan (DRP) requirements.
Subsequent events
Since the end of the financial year, the directors declared the following dividend:
Final dividend on ordinary shares of 57 cents per share, 35.09% franked at 30%, payable 4 December 2009.
The financial effect of the final dividend on ordinary shares has not been brought to account in the financial statements for
the year ended 30 September 2009 and will be recognised in the 2010 annual financial statements.
Franking credits
Company
(1) Dividends on these shares were charged to the Income Statement as borrowing costs as the shares were
classified as liabilities. The shares were cancelled on 14 January 2008.
Franking credits available at the 30% corporate tax rate after allowing for tax paya

For the year ended 30 September
86 Orica Limited
2009 2008 2009 2008
Notes $m $m $m $m
26. Notes to the statements of cash flows
Reconciliation of cash
Cash at the end of the year as shown in the
statements of cash flows is reconciled to the related
items in the balance sheet as follows:
Cash (7) 308.5 321.3 - -
Bank overdraft (17) (11.9) (9.0) - -
296.6 312.3 - -
Reconciliation of profit from ordinary activities
after income tax to net cash flows from operating activities
Profit from ordinary activities after income tax expense 581.4 567.3 311.8 497.7
Depreciation and amortisation 247.7 218.7 0.1 0.2
Share based payments expense 8.1 6.5 - -
Cost of cancellation of cumulative non-redeemable preference shares - 7.5 - 7.5
Share of associates' net (profit)/loss after adding back dividends received 5.5 (7.8) - -
(Decrease)/increase in net interest payable (5.5) (2.0) - (8.4)
Increase/(decrease) in net interest receivable 0.4 1.3 0.5 (1.0)
Net gain on derivatives (1) (20.0) - - -
Impairment of intangibles 9.2 - - -
Impairment of property, plant and equipment 69.7 - - -
Impairment of investments 1.4 - 1.1 -
Net loss on sale of businesses and controlled entities - 1.7 - -
Net profit on sale of investments (13.5) - - -
Net profit on sale of property, plant and equipment (1.8) (5.4) - -
Changes in working capital and provisions excluding the effects of
acquisitions and disposals of businesses/controlled entities
decrease/(increase) in trade and other receivables 213.6 (199.6) (0.1) (0.1)
decrease/(increase) in inventories 209.4 (185.2) - -
(decrease)/increase in deferred taxes payable (85.0) 29.7 1.6 (0.3)
(decrease)/increase in payables and provisions (415.1) 338.5 (0.3) 0.1
increase/(decrease) in income taxes payable 49.4 (34.3) 12.7 3.1
Net cash flows from operating activities 854.9 736.9 327.4 498.8
Consolidated Company
(1) Gain on derivative instruments used to economically hedge the purchase of minority interests during the period. Such transactions
do not qualify for hedge accounting and accordingly the gain on the derivative instruments has been recognised in the income
statement.

27. Businesses and minority interests acquired
Consolidated - 2009
Acquisition of businesses and controlled entities
The consolidated entity acquired the following businesses and entities (100% unless stated otherwise):
China.
Other entities
Minova Ksante Sp. z o.o.: Orica acquired an additional 30% shareholding on 6 November 2008.
Orica Mining Services Peru S.A.: Orica acquired an additional 48.6% shareholding on 28 November 2008.
Orica Kazakhstan Joint Stock Company: Orica acquired an additional 23% shareholding on 23 December 2008.
Businesses
Business assets of Hillmark Industries Pty Ltd, on 13 November 2008.
Business assets of Energy Enterprises, Inc., on 14 August 2009.
Accounting standards require the fair value of the net assets acquired to be recognised. These financial statements include
the preliminary purchase price allocation of acquired net assets. Accounting standards permit up to 12 months for
acquisition accounting to be finalised following the acquisition date.
Book Fair value
values adjustments Total
2009 $m $m $m
Consideration
cash paid 26.5 - 26.5
net overdraft acquired 0.4 - 0.4
deferred settlement 19.2 - 19.2
Total consideration 46.1 - 46.1
Fair value of net assets of businesses/controlled entities acquired
trade and other receivables 12.5 - 12.5
inventories 5.2 - 5.2
property, plant and equipment 4.8 - 4.8
intangibles including purchased goodwill 13.2 - 13.2
other assets 0.1 - 0.1
payables and interest bearing liabilities (13.1) - (13.1)
provisions (0.2) - (0.2)
contingent liabilities - (2.3) (2.3)
22.5 (2.3) 20.2
Goodwill on acquisition 25.9
Acquisition of minority interests:
Total
2009 $m
Goodwill acquired 12.5
Decrease in minority interests 19.1
Net gain on derivatives (20.0)
Equity reserve 68.8 `
Total consideration 80.4
Results contributed by acquired entities since acquisition date: $m
Revenue for the period 38.5
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period 2.3
The unaudited operating revenue and earnings before interest, tax, depreciation and amortisation for the acquired
businesses and entities for the 12 months to 30 September 2009 are as follows:
$m
Operating revenue 45.1
EBITDA 1.7
The unaudited information was compiled by Orica management based on financial information available to Orica during due
diligence and assuming no material transactions between Orica and the acquired businesses. Goodwill on the purchase of
these entities is attributable mainly to the skills and technical talent of the acquired businesses' work forces.

For the year ended 30 September
88 Orica Limited
27. Businesses and minority interests acquired (continued)
Consolidated - 2008
Acquisition of businesses and controlled entities
The consolidated entity acquired the following businesses and entities (100% unless stated otherwise):
Excel Mining
On 24 September 2007, Orica announced that it had signed an agreement to acquire all of Excel Mining Systems LLC.
The acquisition was completed on 26 October 2007.
Other entities
Southern Blasting Services, Inc., on 1 October 2007; Deco-Pro China Limited, on 7 November 2007; Intermountain West Energy,
Inc. on 1 December 2007; Northwest Energetic Service LLC shareholding increased to 51.3% (2007 33.3%), on 1 December 2007;
Evolutia Chemicals SA, on 17 December 2007; BWZ - und Industrietechnik GmbH, on 1 January 2008; Explozia Slovakia s.r.o.,
on 1 April 2008; D.C Guelich Explosives Company, on 9 May 2008; Arnall Poland Sp z o.o., on 4 September 2008.
Businesses
Business assets of: CHC Resources, on 1 March 2008; Enviro Solutions Pty Ltd, on 17 March 2008; Strata Control
Systems, on 23 May 2008; Cyantific Instruments Pty Ltd, on 1 May 2008; Iron Chemicals Australia, on 28 February 2008;
Sindile Mining Supplies, on 15 July 2008.
Accounting standards require the fair value of the net assets acquired to be recognised. These financial statements include
the preliminary purchase price allocation of acquired net assets. Accounting standards permit up to 12 months for
acquisition accounting to be finalised following the acquisition date.
Book Fair value
values adjustments Total
2008 $m $m $m
Consideration
cash paid 892.5 - 892.5
net cash acquired (26.3) - (26.3)
deferred settlement 12.2 - 12.2
Total consideration 878.4 - 878.4
Fair value of net assets of businesses/controlled entities acquired
trade and other receivables 46.1 - 46.1
inventories 35.3 0.9 36.2
property, plant and equipment 34.9 - 34.9
intangibles including purchased goodwill 308.5 - 308.5
other assets 4.2 0.2 4.4
payables and interest bearing liabilities (47.6) - (47.6)
provision for employee entitlements (2.3) - (2.3)
provision for environmental (0.7) (1.5) (2.2)
provision for taxation (0.8) - (0.8)
contingent liabilities - (2.1) (2.1)
377.6 (2.5) 375.1
Less minority interest at date of acquisition (1.5) - (1.5)
376.1 (2.5) 373.6
Goodwill on acquisition 504.8
Acquisition of minority interests:
Total
2008 $m
Goodwill acquired 3.0
Decrease in minority interests 1.0
Equity reserve (1.0)
Total consideration 3.0
Results contributed by acquired entities since acquisition date: $m
Revenue for the period 345.9
EBITDA for the period 72.3
The unaudited operating revenue and earnings before interest, tax, depreciation and amortisation for the acquired
businesses and entities for the 12 months to 30 September 2008 are as follows:
$m
Operating revenue 452.4
EBITDA 83.0
The unaudited information was compiled by Orica management based on financial information available to Orica during due
diligence and assuming no material transactions between Orica and the acquired businesses. Goodwill on the purchase of these
entities is attributable mainly to the skills and technical talent of the acquired businesses' work forces and the synergies expected
to be achieved from integrating these businesses.

28. Businesses disposed
Disposal of businesses/controlled entities
The following businesses and controlled entities were disposed of:
2009:
Nil
2008:
On 23 October 2007, Essential Oils of Tasmania business in Australia.
2009 2008
$m $m
Consideration
cash received - 5.9
Inflow of cash - 5.9
Net consideration - 5.9
Carrying value of net assets of businesses/controlled entities disposed
trade and other receivables - 11.5
inventories - 1.4
property, plant and equipment - 0.5
intangibles - 0.7
payables and interest bearing liabilities - (0.3)
provision for income tax - (0.1)
- 13.7
Less minority interests at date of disposal - (6.1)
- 7.6
Loss on sale of business/controlled entities - (1.7)

Notes to the Financial Statements
For the year ended 30 September
90 Orica Limited
29. Impairment testing of goodwill and intangibles with indefinite lives
Impairment testing is conducted annually at the individual cash generating unit (CGU) level where goodwill and intangibles with
indefinite lives are allocated and monitored for management purposes.
The carrying amounts of goodwill and brand names with indefinite lives are as follows:
Consolidated
2009 2008 2009 2008
$m $m $m $m
Goodwill Brand Names
Mining Services 895.0 973.3 - -
Minova 1,273.9 1,414.2 - -
DuluxGroup 47.4 28.5 40.5 40.3
Chemicals 147.9 157.0 - -
Total 2,364.2 2,573.0 40.5 40.3
The recoverable amount of both goodwill and brand names with indefinite lives is assessed based on value in use. The value in use
calculations use cash flow projections based on actual operating results and the business four year plan approved by the Board
of Directors. Cash flow projections beyond the four year period were calculated using the plan cash flow of the fourth year to the
life of the asset with steady growth rates going forward which are not expected to exceed the long term average growth rates in
the applicable markets.
The discount rates for each CGU were estimated using pre-tax rates based on an external assessment of the Group's post tax
weighted average cost of capital in conjunction with risk specific factors to the countries in which the CGUs operate. The pre-tax
discount rates applied in the discounted cash flow model range between 9% and 25% (2008 6% - 20%). Foreign currency cash
flows are discounted using the functional currency of the CGUs and then translated to Australian Dollars using the closing
exchange rate.
Impairment charged during the year
Goodwill of the Marplex business (included in the Chemicals segment) was written down to nil during the year as a result
of the deterioration in business performance driven by adverse market conditions.
2009 2008
$m $m
Goodwill 8.2 -

For the year ended 30 September
Orica Limited 91
2009 2008 2009 2008
$m $m $m $m
30. Commitments
Capital expenditure commitments
Capital expenditure on property, plant and equipment and
business acquisitions contracted but not provided for and payable:
no later than one year 215.0 140.9 - -
later than one, no later than five years 37.8 - - -
252.8 140.9 - -
Lease commitments
Lease expenditure contracted for at balance date but not
recognised in the financial statements and payable:
no later than one year 82.3 76.4 - -
later than one, no later than five years 138.6 125.0 - -
later than five years 51.3 38.9 - -
272.2 240.3 - -
Representing:
cancellable operating leases 100.3 101.4 - -
non-cancellable operating leases 171.9 138.9 - -
272.2 240.3 - -
Non-cancellable operating lease commitments
payable:
no later than one year 40.7 37.3 - -
later than one, no later than five years 86.7 68.7 - -
later than five years 44.5 32.9 - -
171.9 138.9 - -
Finance lease commitments payable:
no later than one year 4.7 5.3 - -
later than one, no later than five years 14.8 17.0 - -
later than five years 6.6 - - -
26.1 22.3 - -
Less future finance charges (5.0) (4.5) - -
Present value of minimum lease payments provided for as a liability 21.1 17.8 - -
Representing lease liabilities: (see note 17)
current 4.7 5.3 - -
non-current 16.4 12.5 - -
21.1 17.8 - -

Notes to the Financial Statements
For the year ended 30 September
92 Orica Limited
31. Auditors’ remuneration
Total remuneration received, or due and receivable, by the auditors for:
Audit services
Auditors of the Company – KPMG Australia
– Audit and review of financial reports 4,836 4,914 59 56
Other regulatory audit services (1)
Auditors of the Company – overseas KPMG firms
– Audit and review of financial reports 1,826 1,207 - -
6,662 6,121 59 56
Other services (2)
Auditors of the Company – KPMG Australia
– other assurance services (3) 381 477 - -
Auditors of the Company – overseas firms
– taxation services (4) - 222 - -
381 699 - -
7,043 6,820 59 56

32. Critical accounting judgements and estimates
Management determines the development, selection and disclosure of the consolidated entity’s critical accounting policies,
estimates and accounting judgements and the application of these policies and estimates. Management necessarily makes
estimates and judgements that have a significant effect on the amounts recognised in the financial statements. Estimates and
judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations
of future events. Management believes the estimates used in preparing the financial report are reasonable and in accordance
with accounting standards. Changes in the assumptions underlying the estimates may result in a significant impact on the
financial statements. The most critical of these assumptions and judgements are:
Contingent liabilities
In the normal course of business, contingent liabilities may arise from product-specific and general legal proceedings, from
guarantees or from environmental liabilities connected with our current or former sites. Where we believe that potential liabilities
have a low probability of crystallising or it is not possible to quantify them reliably, we disclose them as contingent liabilities.
These are not provided for in the financial statements but are disclosed in note 33. In view of the significance of environmental
issues associated with Botany Groundwater (New South Wales, Australia), Botany Hexachlorobenzene (HCB) Waste and Botany
Car Park Encapsulation they continue to be disclosed as contingent liabilities even though estimated costs have been recognised
in the financial statements. Further details regarding contingent liabilities are set out in note 33.
Environmental and decommissioning provisions
The business of the Group is subject to a variety of laws and regulations in the jurisdictions in which it operates or maintains
properties. Provisions for expenses that may be incurred in complying with such laws and regulations are set aside if
environmental inquiries or remediation measures are probable and the costs can be reliably estimated. For sites where there are
uncertainties with respect to what Orica’s remediation obligations might be or what remediation techniques might be approved
and no reliable estimate can presently be made of regulatory and remediation costs, no amounts have been provided for. It is
also assumed that the methods planned for environmental clean up will be able to treat the issues within the expected time frame.

32. Critical accounting judgements and estimates (continued)
It is difficult to estimate the future costs of environmental remediation because of many uncertainties, particularly with regard to
the status of laws, regulations and the information available about conditions in the various countries and at the individual sites.
Significant factors in estimating the costs include previous experiences in similar cases, expert opinions regarding environmental
programs, current costs and new developments affecting costs, management’s interpretation of current environmental laws and
regulations, the number and financial position of third parties that may become obligated to participate in any remediation costs on
the basis of joint liability, and the remediation methods which are likely to be deployed.
Environmental costs are estimated using either the work of external consultants and/or internal experts. Changes in the
assumptions underlying these estimated costs may impact future reported results. Subject to these factors, but taking into
consideration experience gained to date regarding environmental matters of a similar nature, Orica believes the provisions to be
appropriate based upon currently available information. However, given the inherent difficulties in estimating liabilities in this area,
it cannot be guaranteed that additional costs will not be incurred beyond the amounts provided. It is possible that final resolution
of these matters may require expenditures to be made in excess of established provisions over an extended period of time that
may result in changes in timing of anticipated cash flows from those assumed and in a range of amounts that cannot be
reasonably estimated.
In respect to the Botany Groundwater contamination, a provision was established in 2004 to cover the estimated costs associated
with remediation until 2014. Costs are expected to be incurred after this date, but it is not possible to predict the time frame over
which remediation will be required or the form the remediation will take and therefore it is not possible to reliably estimate any
associated costs. In light of ongoing discussions with regulatory authorities and following an assessment of currently available
technologies to treat the contamination, Orica intends to maintain a provision at current levels that takes into account the
estimated costs associated with remediation commitments. The provision will continue to be re-evaluated based on future
regulatory assessments and advancements in appropriate technologies. The discount rate used for environmental provisioning is
Orica’s weighted average cost of capital and this may vary from year to year.
With regard to the HCB Waste Clean Up, it is assumed that a licence to export waste for destruction overseas will be obtained.
German authorities have rejected Orica’s application to import the waste into Germany for treatment. Orica lodged objections
against these rejections but has subsequently withdrawn these objections, preferring to pursue other alternatives for destruction of
the waste overseas.
Legal proceedings
The outcome of currently pending and future proceedings cannot be predicted with certainty. Thus, an adverse decision in a
lawsuit could result in additional costs that are not covered, either wholly or partially, under insurance policies and that could
significantly impact the business and results of operations of the Group. Litigation and other judicial proceedings as a rule raise
difficult and complex legal issues and are subject to many uncertainties and complexities including, but not limited to, the facts
and circumstances of each particular case, issues regarding the jurisdiction in which each suit is brought and differences in
applicable law. Upon resolution of any pending legal matter, the Group may be forced to incur charges in excess of the presently
established provisions and related insurance coverage. It is possible that the financial position, results of operations or cash flows
of the Group could be materially affected by the unfavourable outcome of litigation. Litigation and administrative proceedings are
evaluated on a case-by-case basis considering the available information, including that from legal counsel, to assess potential
outcomes. Where it is considered probable that a future obligation will result in an outflow of resources, a provision is recorded in
the amount of the present value of the expected cash outflows if these are deemed to be reliably measurable.
In the course of acquisitions and disposals of businesses and assets, Orica routinely negotiates warranties and indemnities
across a range of commercial issues and risks, including environmental risks associated with real property. Management uses
the information available and exercises judgement in the overall context of these transactions, in determining the scope and
extent of these warranties and indemnities. In assessing Orica’s financial position, management relies on warranties and
indemnities received, and considers potential exposures on warranties and indemnities provided. It is possible that the financial
position, results of operations and cash flows of the Group could be materially affected if circumstances arise where warranties
and indemnities received are not honoured, or for those provided, circumstances change adversely.
Defined benefit superannuation fund obligations
The expected costs of providing post-retirement benefits under defined benefit arrangements relating to employee service during
the period are charged to the income statement. Any actuarial gains and losses, which can arise from differences between
expected and actual outcomes or changes in actuarial assumptions, are recognised immediately in the consolidated statement of
recognised income and expense. In all cases, the superannuation costs are assessed in accordance with the advice of
independent qualified actuaries but require the exercise of significant judgement in relation to assumptions for future salary and
superannuation increases, long term price inflation and investment returns. While management believes the assumptions used
are appropriate, a change in the assumptions used may impact the earnings and equity of the Group (refer note 38).
Property, plant and equipment and definite life intangible assets
The Group’s property, plant and equipment and intangible assets, other than indefinite life intangible assets, are
depreciated/amortised on a straight line basis over their useful economic lives. Management reviews the appropriateness of
useful economic lives of assets at least annually but any changes to useful economic lives may affect prospective depreciation
rates and asset carrying values.

32. Critical accounting judgements and estimates (continued)
Financial instruments at fair value
The Group measures a number of financial instruments at fair value. These fair values are based on observable market data
which is used to estimate future cash flows and discount them to present value. Management's aim is to use and source this data
consistently from period to period. While management believes the assumptions used are appropriate, a change in assumptions
would impact the fair value calculations.
Impairment of assets
The Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that
those assets are impaired. In making the assessment for impairment, assets that do not generate independent cash flows are
allocated to an appropriate cash generating unit (CGU). The recoverable amount of those assets, or CGUs, is measured as the
higher of their fair value less costs to sell and value in use. Management necessarily applies its judgement in allocating assets
that do not generate independent cash flows to appropriate CGUs.
The determination of value in use requires the estimation and discounting of future cashflows. The estimation of the cashflows
considers all the information available at balance date which may deviate from actual developments. This includes, among other
things, expected revenue from sales of products, the return on assets, future costs and discount rates. Subsequent changes to
the CGU allocation or to the timing and quantum of cash flows may impact the carrying value of the respective assets.
Current asset provisions
In the course of normal trading activities, management uses its judgement in establishing the net realisable value of various
elements of working capital – principally inventory and accounts receivable. Provisions are established for obsolete or slow
moving inventories, bad or doubtful receivables and product warranties. Actual expenses in future periods may be different from
the provisions established and any such differences would affect future earnings of the Group.
Taxation
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant judgement is
required in determining the worldwide provision for income taxes. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for
tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the current and deferred tax provision in the
period in which such determination is made.
In addition, deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable profits are available to utilise those temporary differences and losses, and the tax losses continue to be
available having regard to the nature and timing of their origination and compliance with the relevant tax legislation associated
with their recoupment.
Assumptions are also made about the application of income tax legislation. These assumptions are subject to risk and
uncertainty and there is a possibility that changes in circumstances will alter expectations which may impact the amount of
deferred tax assets and deferred tax liabilities recorded on the Balance Sheet and the amount of tax losses and timing differences
not yet recognised. In these circumstances, the carrying amount of deferred tax assets and liabilities may change, resulting in an
impact on the earnings of the Group.
Carbon Pollution Reduction Scheme
The Australian Federal Government has proposed introducing a Carbon Pollution Reduction Scheme (CPRS) in July 2011. The
introduction of the CPRS has the potential to significantly impact the assumptions used in determining the future cash flows
generated from the Group's assets for the purpose of impairment testing. The Group has not yet incorporated the impact of the
CPRS at 30 September 2009 as insufficient market information existed. The CPRS is not targeted to come into effect until July
2011 and the relevant legislation has yet to be passed. There are uncertainties around the future level of emissions the Group will
emit as these are dependent on production output and abatement opportunities. In addition, the costs of implementing abatement
opportunities, the prices of emission permits, the number of permits to be purchased, the impact of costs incurred by our suppliers
and their ability to pass on these costs to Orica and the ability of Orica to pass on any costs incurred to its customers are currently
unknown.
33. Contingent liabilities and contingent assets
Environmental
(i) General
A number of sites within the Group have been identified as requiring environmental remediation or review. Appropriate
implementation of remediation actions to meet Orica’s obligations for these sites is continuing.
In accordance with the current accounting policy, provisions have been created for all known environmental liabilities that can be
reliably estimated. For sites where the requirements have been assessed and are capable of reliable measurement, estimated
regulatory and remediation costs have been capitalised, expensed as incurred or provided for. For environmental matters where
there are significant uncertainties with respect to Orica’s remediation obligations or the remediation techniques that might be
approved, no reliable estimate can presently be made of regulatory and remediation costs. Any costs are expensed as incurred.

33. Contingent liabilities and contingent assets (continued)
There can be no assurance that new information or regulatory requirements with respect to known sites or the identification of
new remedial obligations at other sites will not require additional future provisions for environmental remediation and such
provisions could be material.
Orica has entered into arrangements with the relevant regulatory authorities for a number of sites to investigate possible land and
groundwater contamination and, where appropriate, undertake voluntary remediation activities on these sites. Where reliable
estimates are possible and remediation techniques have been identified for these sites, provisions have been established in
accordance with the current accounting policy.
(ii) Significant environmental matters which are in progress at the date of this report are as follows:
Botany Groundwater (New South Wales, Australia)
Orica is continuing to conduct extensive remediation activities, including the operation of a Groundwater Treatment Plant, to treat
the groundwater at Botany, which is contaminated with pollutants from historical operations. The Groundwater Treatment Plant
has been commissioned and a portion of the treated water is sold by Orica to other corporations to replace town drinking water in
industrial uses. Testing of the quality of the recycled water is ongoing.
Orica is also investigating suitable remediation options for Dense Non-Aqueous Phase Liquid (DNAPL) source areas. No
provision has been established for remediation activities in respect of DNAPL as a reliable estimate is not possible at this stage.
Orica has received preliminary results indicating elevated concentrations of mercury in soil and groundwater at the southern end
of the Botany site and at adjacent offsite locations. An environmental consultant has been commissioned to assess and report on
these concentrations of mercury. No provision has been established for remediation activities in respect of this matter as the
extent of contamination is unknown.
Botany Hexachlorobenzene (HCB) Waste Clean Up (New South Wales, Australia)
In August 2006, Orica submitted its application for export approval of HCB waste to the Federal Government. In its application,
Orica sought permission to export the HCB waste for final destruction at high temperature incinerators in Germany. In May 2007,
the Federal Government issued a duly motivated statement of fact that Australia does not have the technical capability to treat
Orica’s HCB waste. In June 2007, German authorities rejected Orica’s application to import the HCB waste into Germany. Orica
lodged objections against these rejections but has subsequently withdrawn these objections, preferring to pursue other
alternatives for destruction of the waste overseas. In the event that Orica does not obtain the necessary regulatory approvals to
export the waste overseas for destruction, it will continue to ensure the safe storage of the HCB waste at Botany. Orica provided
for the estimated costs associated with export and treatment of the waste in 2006 (refer note 19).
Botany Car Park Waste Encapsulation (New South Wales, Australia)
Soil and ash contaminated with low level chlorinated materials (including hexachlorobutadiene and HCB) are stored in an
approved and licensed encapsulation on the Botany site, known as the Car Park Waste Encapsulation. Orica has investigated
technologies that may be suitable to treat this material and has evaluated conventional destruction methods and has determined
that direct thermal treatment of this waste is the preferred treatment technology. As required under the Botany site environmental
licence conditions, Orica has submitted an application for planning approval of the proposed remediation. Orica has provided for
estimated costs of treatment of the soil using thermal desorption technology (refer note 19).
Taxation
(i) Tax investigations and audits
Consistent with other companies of the size and diversity of Orica, the Group is the subject of periodic information requests,
investigations and audit activities by the Australian Taxation Office (ATO) and tax authorities in other jurisdictions in which Orica
operates.
(ii) Brazilian Tax Action
The Brazilian Taxation authority is claiming unpaid taxes relating to the 1997 financial year of approximately $25 million. ICI Plc,
the vendor of the business to Orica, has been notified to preserve Orica's rights under the tax indemnity obtained upon acquisition
of the business. The Brazilian Taxation authority has been granted security over the Lorena site in relation to these matters.
Some additional security may be given as the matter progresses through to the civil courts of law.
(iii) Tax Audit – 1998 Sale of Pharmaceuticals Business
On 13 October 2004, Orica Limited received a notice of amended assessment from the ATO for $210.3 million (primary tax of
$95.3 million, penalties of $23.8 million and interest of $91.2 million). The amended assessment relates to the sale of the
pharmaceuticals business to Zeneca in September 1998.
On 9 November 2004, Orica lodged an objection against the amended assessment. On 10 March 2005, the ATO disallowed the
objection and, in March 2005, Orica applied to have the matter dealt with by the Federal Court.
On 28 March 2006, the ATO advised Orica of an error with the interest calculation in relation to the amended assessment,
reducing the interest component by $10.2 million. On the basis of the 50% arrangement, Orica Limited received a refund of $5.1
million from the ATO.
After due consideration, the directors are of the opinion the ATO’s case has no merit and accordingly no liability is recognised.
In accordance with the ATO administrative practice, Orica has paid 50% of the amended assessment, which has been recognised
as a non-current receivable.

33. Contingent liabilities and contingent assets (continued)
The ATO has indicated that if it is unsuccessful in defending the amended assessment against Orica, it may consider issuing an
amended assessment for a similar amount to Orica Australia Pty Ltd in respect of the same transaction. The ATO considers that
it is not in a position to decide if the second assessment should be issued until the outcome of the dispute with Orica Limited is
known. Orica would also contest this matter.
The Federal Court heard the case from 5 to 6 October 2009 before Justice Sunberg. Judgment was reserved.
Guarantees, indemnities and warranties
 The consolidated entity has entered into various long term supply contracts. For some contracts, minimum charges are
payable regardless of the level of operations, but the levels of operations are expected to remain above those that would
trigger minimum payments.
 There are a number of legal claims and exposures which arise from the ordinary course of business. There is significant
uncertainty as to whether a future liability will arise in respect of these items. The amount of liability, if any, which may arise
cannot be reliably measured at this time.
 The consolidated entity has entered into various sales contracts where minimum savings are guaranteed to customers and
such savings are expected to be achieved in the ordinary course of business.
 There are guarantees relating to certain leases of property, plant and equipment and other agreements arising in the ordinary
course of business.
 Contracts of sale covering companies and assets which were divested during the current and prior years include commercial
warranties and indemnities to the purchasers.
The Company
Under the terms of a Deed of Cross Guarantee entered into in accordance with the ASIC Class Order 98/1418 dated 13 August
1998 (as amended), each company which is a party to the Deed has covenanted with the Trustee of the Deed to guarantee the
payment of any debts of the other companies which are party to the Deed which might arise on the winding up of those
companies. The closed group of entities which are party to the Deed are disclosed in note 39. A consolidated balance sheet and
income statement for this closed group is shown in note 40.