Transactions with key management personnel
The key management personnel compensation included in employee benefits are as follows.
Year ended March 31, |
||
| 2010 | 2009 | |
| Short-term employee benefits | 3,73,76,662 | 7,15,53,379 |
| Termination benefits | 28,28,172 | 37,39,135 |
| 4,02,04,834 | 7,52,92,514 | |
| Comprising: | ||
| Directors | 3,34,99,252 | 4,89,74,156 |
| Executives | 67,05,581 | 2,63,18,358 |
| 4,02,04,834 | 7,52,92,514 | |
There were no other transactions with key management personnel.
As at 31 March, 2010 the ultimate parent entity is Infosys Technologies Limited (incorporated in India) which owns 100% of the issued ordinary shares of Infosys Technologies (Australia) Pty Limited.
The company has a related party relationship with its controlling entity and with its key management personnel.
Aggregate amounts included in the determination of profit that resulted from transactions with the controlling entity
Year ended March 31, |
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| 2010 | 2009 | |
| Professional service fee revenue received pursuant to sub-contractor agreement: | ||
| Revenue from ultimate controlling entity | 634,35,37,000 | 471,29,82,000 |
| Purchase of services from Ultimate controlling entity | 25,00,88,000 | 10, 53,00,000 |
| Sale of intellectual property to the ultimate controlling entity (Mainstream) | – | 1,26,840 |
| Transactions with ultimate parent entity | As at March 31, 2010 |
As at March 31, 2009 |
| Current trade receivables | 20,05,24,000 | 16,11,02,97,000 |
| Current trade payables | 6,96,73,000 | 4,14,75,52,000 |
| Amounts payable and receivable are non- interest bearing | ||
The controlling entity makes payments on behalf of the Company and vice versa. These costs are reimbursed on a monthly basis.
Purchase of services from China amounts to Rs. 1,29,90,968.
The Company's operations predominantly relate to providing end-to-end business solutions that leverage technology thereby enabling clients to enhance business performance. These solutions are delivered to customers globally operating in various industry segments. Accordingly, revenues represented along industry classes comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of the geographical location of customers.
The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies.
Industry segments at the Company are primarily financial services comprising customers providing banking, finance and insurance services; manufacturing companies; companies in the telecommunications and the retail industries; and others such as utilities, transportation and logistics companies.
Income and direct expenses in relation to segments is categorized based on items that are individually identifiable to that segment, while the remainder of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as “unallocated” and directly charged against total income.
Fixed assets used in the Company’s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made.
Customer relationships are driven based on the location of the respective client. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and the Rest of the World comprising all other places except, those mentioned above and India.
Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.
Year ended March 31, 2010 and March 31, 2009:
| Financial services | Manufacturing | Telecom | Others | Total | |
| Revenues | 1,79,49,10,268 | 8,92,24,079 | 4,64,00,02,001 | 58,93,28,420 | 7,11,34,64,769 |
| 1,52,59,02,327 | 6,96,33,995 | 3,15,36,84,783 | 74,51,59,728 | 5,49,43,80,833 | |
| Identifiable operating expenses | 1,20,57,57,079 | 6,43,17,145 | 2,77,18,57,664 | 43,03,42,229 | 4,47,22,74,117 |
| 93,06,30,491 | 4,60,83,502 | 1,69,37,04,274 | 39,87,16,434 | 3,06,91,34,700 | |
| Allocated expenses | 47,63,11,808 | 2,36,77,218 | 1,23,13,08,205 | 15,63,88,924 | 1,88,76,86,155 |
| 50,52,75,445 | 2,30,58,060 | 1,04,42,86,685 | 24,67,46,405 | 1,81,93,66,596 | |
| Segmental operating income | 11,28,41,382 | 12,29,715 | 63,68,36,133 | 25,97,268 | 75,35,04,497 |
| 8,99,96,391 | 4,92,433 | 41,56,93,824 | 9,96,96,889 | 60,58,79,537 | |
| Unallocable expenses | 15,71,39,042 | ||||
| 5,56,91,463 | |||||
| Operating income | 59,63,65,456 | ||||
| 55,01,88,074 | |||||
| Other income, net | 9,53,92,319 | ||||
| 12,10,22,755 | |||||
| Net profit before taxes | 69,17,57,775 | ||||
| 67,12,10,829 | |||||
| Income taxes | 22,56,27,188 | ||||
| 20,24,27,097 | |||||
| Net profit after taxes | 46,61,30,587 | ||||
| 46,87,83,732 |
Year ended March 31, 2010 and March 31, 2009:
| North America | Europe | Rest of the World | Total | |
| Revenues | 1,77,80,706 | 1,24,51,677 | 7,08,32,32,386 | 7,11,34,64,769 |
| 35,796,877 | 10,415,769 | 5,448,168,187 | 5,494,380,833 | |
| Identifiable operating expenses | 1,43,35,583 | 1,18,85,911 | 4,44,60,52,623 | 4,47,22,74,117 |
| 2,22,43,886 | 78,51,685 | 3,03,90,39,128 | 3,06,91,34,700 | |
| Allocated expenses | 47,18,431 | 33,04,277 | 1,87,96,63,447 | 1,88,76,86,155 |
| 1,18,53,500 | 34,48,997 | 1,80,40,64,099 | 1,81,93,66,596 | |
| Segmental operating income | (12,73,308) | (27,38,511) | 75,75,16,316 | 75,35,04,497 |
| 16,99,491 | (8,84,914) | 60,50,64,960 | 60,58,79,537 | |
| Unallocable expenses | 15,71,39,042 | |||
| 5,56,91,463 | ||||
| Operating income | 59,63,65,456 | |||
| 55,01,88,074 | ||||
| Other income, net | 9,53,92,319 | |||
| 12,10,22,755 | ||||
| Net profit before taxes | 69,17,57,775 | |||
| 67,12,10,829 | ||||
| Income taxes | 22,56,27,188 | |||
| 20,24,27,097 | ||||
| Net profit after taxes | 46,61,30,587 | |||
| 46,87,83,732 |