Schedules to the financial statements for the year ended March 31, 2011
16.2.14. Details of Investments
in 
Current investments |
No. of units as at |
Amount as at |
||
March 31, 2011 |
March 31, 2010 |
March 31, 2011 |
March 31, 2010 |
|
Birla Sun Life AMC Ltd. – Liquid Plus |
70,13,771 |
2,56,07,020 |
7,02,74,475 |
25,62,44,320 |
DWS Mutual Fund – Liquid Plus |
– |
1,89,66,884 |
– |
19,00,08,350 |
ICICI Prudential SIP Liquid Plus |
– |
13,38,737 |
– |
14,15,51,298 |
IDFC Mutual Fund Liquid Plus |
– |
2,53,03,413 |
– |
25,30,72,094 |
Kotak Mutual Fund – Liquid Plus |
77,94,013 |
2,50,08,866 |
9,53,05,962 |
25,20,84,370 |
Reliance Mutual Fund Liquid Plus |
26,97,883 |
1,02,27,161 |
3,00,58,466 |
17,48,38,407 |
Religare Mutual Fund – Liquid Plus |
– |
2,51,38,547 |
– |
25,17,80,149 |
TATA Asset Management Ltd. – Liquid Plus |
9,238 |
2,55,96,059 |
1,02,95,856 |
25,68,71,808 |
UTI Mutual Fund – Liquid Plus |
– |
2,31,677 |
– |
23,17,26,991 |
1,75,14,905 |
15,74,18,364 |
20,59,34,759 |
2,00,81,77,787 |
|
Movement of investment during period ended March 31,2011 |
Opening balance in
units, |
Purchased in
units, |
Redemption in
units, |
Closing balance in
units, |
Birla Sun Life AMC Ltd Liquid Plus |
2,56,07,020 |
2,73,81,874 |
4,59,75,123 |
70,13,771 |
25,62,44,320 |
27,42,72,849 |
46,02,42,694 |
7,02,74,475 |
|
DWS Mutual fund – Liquid Plus |
1,89,66,884 |
3,02,14,345 |
4,91,81,229 |
– |
19,00,08,350 |
30,26,84,288 |
49,26,92,638 |
– |
|
HDFC Mutual Fund – Liquid Plus |
– |
2,49,73,318 |
2,49,73,318 |
– |
– |
25,17,53,521 |
25,17,53,521 |
– |
|
ICICI Prudential SIP Liquid Plus |
13,38,737 |
32,72,525 |
46,11,262 |
– |
14,15,51,298 |
33,24,88,638 |
47,40,39,936 |
– |
|
IDFC Mutual Fund Liquid Plus |
2,53,03,413 |
62,19,494 |
3,15,22,907 |
– |
25,30,72,094 |
6,22,10,289 |
31,52,82,383 |
– |
|
Kotak mutual fund – Liquid Plus |
2,50,08,866 |
4,30,75,988 |
6,02,90,841 |
77,94,013 |
25,20,84,370 |
52,59,78,207 |
68,27,56,615 |
9,53,05,962 |
|
Principal Mutual Fund – Liquid Plus |
– |
1,80,50,057 |
1,80,50,057 |
– |
– |
18,07,22,590 |
18,07,22,590 |
– |
|
Reliance Mutual Fund Liquid Plus |
1,02,27,161 |
2,92,45,090 |
3,67,74,368 |
26,97,883 |
17,48,38,407 |
35,43,74,176 |
49,91,54,117 |
3,00,58,466 |
|
Religare mutual fund – Liquid Plus |
2,51,38,547 |
67,23,001 |
3,18,61,548 |
– |
25,17,80,149 |
12,19,46,666 |
37,37,26,815 |
– |
|
TATA Asset Management Ltd Liquid Plus |
2,55,96,059 |
1,28,12,886 |
3,83,99,707 |
9,238 |
25,68,71,808 |
27,54,35,615 |
52,20,11,567 |
1,02,95,856 |
|
Templeton Mutual Fund – Liquid Plus |
– |
5,17,258 |
5,17,258 |
– |
– |
51,76,05,043 |
51,76,05,043 |
– |
|
UTI mutual fund – Liquid Plus |
2,31,677 |
2,87,204 |
5,18,881 |
– |
23,17,26,992 |
29,27,54,853 |
52,44,81,845 |
– |
16.2.14a. Investment in McCamish Systems LLC
On December 4, 2009, Infosys BPO acquired 100% of the voting interests in McCamish Systems LLC (McCamish), a business process solutions provider based in Atlanta, Georgia, in the United States. The business acquisition was concluded by entering into Membership Interest Purchase Agreement for a cash consideration of 173 crore and a contingent consideration of 67 crore. During the year ended March 31, 2010, the Company advanced a loan of 18 crore which was converted into membership interests of McCamish.
16.2.14b. Provision for Investment
During the year ended March 31, 2011, Infosys BPO (Thailand) Limited, a subsidiary, filed for liquidation which was approved by appropriate authorities in Thailand on March 18, 2011. The Company received 3,16,33,809 during the year as repayment of investment made in the subsidiary and has written off the balance amount because of diminution other than temporary.
16.2.15. Deferred revenues
Revenue recognition has been deferred pending resolution of significant uncertainties regarding the amount of consideration that will be derived from rendering services.
Deferred revenues amounted to 8,71,78,937 and 7,67,31,141 as at March 31, 2011 and March 31, 2010 respectively and have been disclosed under current liabilities.
16.2.16. Reconciliation between basic and dilutive shares
The reconciliation between basic and dilutive shares is set out below :
in
Year ended March 31, |
||
2011 |
2010 |
|
Weighted average shares used in computing basic earnings per share |
3,38,27,751 |
3,38,27,751 |
Dilutive effect of stock options |
– |
– |
Weighted average shares used in computing diluted earnings per share |
3,38,27,751 |
3,38,27,751 |
16.2.17. Disclosure for defined Benefit Plans
Gratuity is applicable to all permanent and full time employees of the Company. Gratuity paid out is based on last drawn basic salary and dearness allowance at the time of termination or retirement.
The scheme takes into account each completed year of service or part thereof in excess of six months. The normal age of retirement is 60 years and the entire contribution is borne by the Company.
The Company recognizes actuarial gains and losses as and when the same arise. The charge in respect of the same is taken to the Profit and Loss account.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation :
in
As at March 31, |
||||
2011 |
2010 |
2009 |
2008 |
|
Obligations at the beginning of the year |
14,25,35,851 |
10,83,54,625 |
5,97,96,919 |
3,65,75,416 |
Liability as on April 1, 2008 assumed on the amalgamation of PAN Financial Shared Services India Private Limited |
– |
– |
1,31,80,050 |
– |
Service cost |
6,51,09,966 |
6,73,44,267 |
4,07,80,299 |
2,57,48,242 |
Interest cost |
74,96,831 |
46,65,510 |
42,52,594 |
28,21,347 |
Benefits settled |
(4,42,43,763) |
(3,71,70,205) |
(2,35,68,652) |
(1,42,50,440) |
Actuarial (gain) / loss |
1,67,91,815 |
(6,58,346) |
1,39,13,415 |
89,02,354 |
Obligations at the end of the year |
18,76,90,700 |
14,25,35,851 |
10,83,54,625 |
5,97,96,919 |
Defined benefit obligation liability as at the Balance Sheet is wholly funded by the Company.
Change in plan assets :
in
As at March 31, |
||||
2011 |
2010 |
2009 |
2008 |
|
Plan assets at beginning of the year, at fair value |
15,45,17,163 |
11,64,20,243 |
6,12,93,221 |
3,49,57,318 |
Assets as on April 1, 2008 assumed on the amalgamation of PAN Financial Shared Services India Private Limited |
– |
– |
1,59,21,701 |
– |
Expected return on plan assets |
1,56,93,766 |
1,14,83,981 |
64,94,791 |
33,91,458 |
Actuarial gain / (loss) |
(1,84,436) |
3,04,464 |
18,39,632 |
3,84,157 |
Contributions |
7,19,73,579 |
6,34,78,680 |
5,44,39,550 |
3,68,10,728 |
Benefits settled |
(4,42,43,763) |
(3,71,70,205) |
(2,35,68,652) |
(1,42,50,440) |
Plan assets at end of the year, at fair value |
19,77,56,309 |
15,45,17,163 |
11,64,20,243 |
6,12,93,221 |
Reconciliation of present value of the obligation and the fair value of the plan assets :
in
As at March 31, |
||||
2011 |
2010 |
2009 |
2008 |
|
Fair value of plan assets at the end of the year |
19,77,56,309 |
15,45,17,163 |
11,64,20,243 |
6,12,93,221 |
Present value of the defined benefit obligations at the end of the year |
18,76,90,700 |
14,25,35,851 |
10,83,54,625 |
5,97,96,919 |
Asset recognized in the Balance Sheet |
1,00,65,608 |
1,19,81,312 |
80,65,618 |
14,96,302 |
Gratuity cost for the year :
in
Year ended March 31, |
||
2011 |
2010 |
|
Service cost |
6,51,09,966 |
6,73,44,267 |
Interest cost |
74,96,831 |
46,65,510 |
Expected return on plan assets |
(1,56,93,766) |
(1,14,83,981) |
Actuarial (gain) / loss |
1,69,76,251 |
(9,62,810) |
Net gratuity cost |
7,38,89,283 |
5,95,62,986 |
Actual return on plan assets |
1,55,09,330 |
1,17,88,445 |
100% of plan assets are maintained by Life Insurance Corporation of India.
As at March 31, |
||||
2011 |
2010 |
2009 |
2008 |
|
Interest rate |
7.98% |
7.82% |
7.01% |
7.92% |
Discount rate |
7.98% |
7.82% |
7.01% |
7.92% |
Estimated rate of return on plan assets |
9.36% |
9.00% |
7.01% |
7.92% |
Retirement age |
60 |
60 |
58 |
58 |
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.