If I remember rightly elayaraja is still using XSLT 1.0 despite the fact that he/she is trying to do many things that are much easier in XSLT 2.0.
If you're stuck with 1.0 and need to do date arithmetic then the best bet (other than moving to XSLT 2.0) is to use the library of routines at
http://www.exslt.org/
Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer's Reference