Key management personnel comprise of directors. There has been no transactions with key management personnel during the year.
The provision for taxation includes tax liabilities in India on the company’s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries. Income from STPs are exempt from tax for the earlier of 10 years commencing from the fiscal year in which the unit commences software development or March 31, 2011. Pursuant to the changes in the Indian Income Tax Act, the Company has calculated its tax liability after considering Minimum Alternate Tax (MAT). The MAT liability can be carried forward and set off against the future tax liabilities. Accordingly a sum of Rs. 15,76,312 was carried forward and shown under ’Loans and Advances‘ in the Balance Sheet as at March 31, 2010.
Details of balances as on balance sheet dates with scheduled banks:-
| Balances with scheduled banks in India | As at March 31, |
| 2010 | |
| In current accounts | |
| Citibank | 2,33,42,086 |
| Citibank-EEFC account in U.S. dollar | 22,44,103 |
| 2,55,86,189 |
| Balances with scheduled banks in India | As at March 31, |
| 2010 | |
| In deposit accounts | |
| Canara Bank | 50,000 |
| 50,000 | |
| Total cash and bank balances as per balance sheet | 2,56,36,189 |
The Company's Services are predominantly rendered to its holding company, Infosys Consulting Inc and all costs are incurred in India and hence segment reporting is not applicable.
The following table set out the status of the Gratuity Plan as required under AS 15.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets:
| Particulars | As at March 31, |
| 2010 | |
| Obligations at period beginning | – |
| Transfer of obligation | 1,57,40,981 |
| Service cost | 15,40,325 |
| Interest cost | 6,15,472 |
| Actuarial (gain)/ loss | (40,436) |
| Benefits paid | – |
| Amendment in benefit plans | – |
| Obligations at period end | 1,78,56,342 |
| Defined benefit obligation liability as at the Balance Sheet is fully funded by the Company | |
| Change in plan assets | |
| Plans assets at period beginning, at fair value | – |
| Expected return on plan assets | 19,338 |
| Actuarial gain/ (loss) | 537 |
| Contributions | 21,09,469 |
| Benefits paid | – |
| Plans assets at period end, at fair value | 21,29,344 |
in Rs
| Particulars | As at March 31, |
| 2010 | |
| Reconciliation of present value of the obligation and the fair value of the plan assets: | |
| Fair value of plan assets at the end of the period | 21,29,344 |
| Present value of the defined benefit obligations at the end of the period | 1,78,56,342 |
| Asset recognized in the Balance Sheet | 13,983 |
| Assumptions | |
| Interest rate | 7.57% |
| Estimated rate of return on plan assets | 9.00% |
| Weighted expected rate of salary increase | 7.27% |
| Year ended March 31, |
|
| 2010 | |
| Gratuity cost for the period | |
| Service cost | 15,40,325 |
| Interest cost | 6,15,472 |
| Expected return on plan assets | (19,338) |
| Actuarial (gain) / loss | (40,973) |
| Plan amendment amortization | – |
| Net gratuity cost | 20,95,486 |
| Actual return on plan assets | 19,875 |
Gratuity cost, as disclosed above, is included under salaries and bonus and is segregated between software development expenses, selling and marketing expenses and general and administration expenses on the basis of number of employees.
During the year ended March 31, 2010, a reimbursement asset of Rs. 2 crore has been recognized towards settlement of gratuity liability from Infosys Technologies Limited.
As of March 31, 2010, the Plan assets have been primarily invested in government securities. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.
The Company expects to contribute approximately Rs. 1,02,47,623 to the gratuity trust for fiscal 2011.
The Guidance on Implementing AS 15, Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the Company’s actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the Company is unable to exhibit the related information.
The Company contributed Rs. 39,58,869 during the year ended March 31, 2010, respectively.
The Company contributed Rs. 35,13,689.93 to the Superannuation Trust during the year ended March 31, 2010, respectively.
The company has no dues to micro and small enterprises during the quarter and year ended March 31, 2010 and as at March 31, 2010.