Schedules to the financial statements for the year ended December 31, 2010

15.2. Notes on accounts

Amounts in the financial statements are presented in Rupees.

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current presentation.

15.2.1. Aggregate expenses

The aggregate amounts incurred on expenses are as follows :

	Year ended December 31,
	2010	2009
Salaries and bonus including overseas staff expenses	1,97,52,11,246	1,15,50,89,393
Contribution to provident and other funds	19,03,860	6,72,848
Staff welfare	5,32,17,814	2,93,25,662
Group health insurance	21,95,309	20,38,960
Travel expenses	17,40,67,486	8,66,04,336
Technical sub-contractors – others	7,10,98,937	7,55,21,523
Software packages
For own use	58,08,252	62,31,606
Professional charges	6,17,69,976	2,70,25,781
Telephone charges	62151294	41985900
Power and fuel	4,04,70,293	2,20,38,237
Office maintenance	5,14,27,115	1,69,62,111
Commission charges	–	–
Brand building	1,55,876	1,98,241
Rent	12,09,35,878	7,88,16,766
Insurance charges	39,52,744	33,56,657
Repair and maintenance	2,04,34,249	1,69,40,438
Printing and stationery	91,43,443	42,02,138
Consumables	8,57,448	26,49,021
Donations	–	13,680
Advertisements	2,52,000	9,79,912
Marketing expenses	23,59,256	16,94,736
Repairs to plant and machinery	38,87,095	21,25,356
Rates and taxes	8,37,049	12,59,108
Professional membership and seminar participation fees	18,86,424	5,81,606
Postage and courier	26,09,212	8,84,703
Books and periodicals	2,76,443	34,961
Provision for bad and doubtful debts	(7,39,638)	(22,65,881)
Provision for doubtful loans and advances	13,85,248	5,28,909
Bank charges and commission	9,94,820	6,04,235
Auditor’s remuneration
Statutory audit fees	13,80,410	12,89,074
Miscellaneous expenses	7,39,047	(97,781)
	2,67,06,68,588	157,72,92,235

15.2.2. Capital commitments and contingent liabilities

Particulars	As at December 31,
Particulars	2010	2009
Estimated amount of unexecuted capital contracts
(Net of advances and deposits)	6,75,03,600	29,04,041

15.2.3. Activity in foreign currency

Particulars	Year ended December 31,
Particulars	2010	2009
Earnings in foreign currency (on receipts basis)
Income from software services and products	2,85,04,94,482	1,54,56,08,386
Expenditure in foreign currency (on payments basis)
Travel expenses (including visa charges)	1,73,69,845	1,08,94,369
Net earnings in foreign currency	2,83,31,24,637	1,53,47,14,017

15.2.4. Obligations on long-term, non-cancelable operating leases

The lease rentals charged during the period and maximum obligations on long-term, non-cancelable operating leases payable as per the rentals stated in the respective agreements are as follows :

	Year ended December 31,
	2010	2009
Lease rentals recognized during the period	12,09,35,878	7,88,16,766

Lease obligations payable :	As at December 31,
Lease obligations payable :	2010	2009
Within one year of the Balance Sheet date	15,03,68,064	5,37,13,218
Due in a period between one year and five years	44,54,07,626	1,38,80,541
Due after five years	–	–

The operating lease arrangements extend up to a maximum of five years from their respective dates of inception and relates to rented overseas premises. Some of the lease arrangements have a price escalation clause.

15.2.5. Related party transactions

Name of related party	Country	Holding as at December 31,
		2010	2009
Infosys Technologies Limited	India	100%	100%

Infosys guarantees the performance of certain contracts entered into by its subsidiaries

Details of amounts due to or due from as at December 31, 2010 and December 31, 2009 :

Particulars	As at December 31,
	2010	2009
Loans and advances
Infosys Technologies Limited	23,17,14,154	47,33,08,117
Sundry debtors
Infosys Technologies Limited	25,61,20,182	24,33,19,094
Infosys Technologies (Australia) Pty. Limited	12,05,964	–
Infosys BPO Limited (including subsidiaries)	89,66,728	36,66,535
Infosys Consulting, Inc.	6,65,538	–
Sundry creditors
Infosys Technologies Limited	35,45,78,316	26,12,25,904
Infosys Technologies (Australia) Pty. Limited	7,92,172	42,56,456
Infosys BPO Limited (including subsidiaries)	2,19,11,233	72,47,135
Infosys Consulting, Inc.	4,32,455	–

The details of the related party transactions entered into by the Company for the year ended December 31, 2010 and December 31, 2009 are as follows :

Particulars	Year ended December 31,
Particulars	2010	2009
Capital transactions :
Financing transactions
Infosys Technologies Limited	40,57,06,059	20,22,75,983
Loans / Advances
Infosys Technologies Limited	(24,15,93,963)	–
Revenue transactions :
Purchase of services
Infosys Technologies Limited	6,35,16,507	7,55,21,523
Interest expenses
Infosys Technologies Limited	2,62,98,228	2,90,48,963
Sale of services
Infosys Technologies Limited	229,07,26,769	116,82,12,804
Maximum balances of loans and advances
Infosys Technologies Limited	47,33,08,117	47,33,08,117

15.2.6 Cash and bank balances

The details of balances as on Balance Sheet dates with non-scheduled banks are as follows :

Balances with non-scheduled banks	As at December 31,
Balances with non-scheduled banks	2010	2009
In current accounts
ABN Amro Bank, Shanghai, China	45,63,20,522	38,69,26,323
Pudong Development Bank	34,75,419	6,11,98,651
Hangzhou Merchant Bank	82,57,054	1,01,22,005
In deposit accounts
ABN Amro Bank, Shanghai, China	23,80,00,000	–
	70,60,52,995	45,82,46,979

The details of maximum balances during the period with non-scheduled banks are as follows :

Maximum balance with non-scheduled banks during the period	Year ended December 31,
Maximum balance with non-scheduled banks during the period	2010	2009
In current accounts
Pudong Development Bank	5,92,27,389	6,14,36,334
Hangzhou Merchant Bank	3,30,16,807	2,41,40,628

15.2.7 Fixed assets

Depreciation charged to the Profit and Loss account includes a charge relating to assets costing less than 5,000/- each and other low value assets.

	Year ended December 31,
	2010	2009
Depreciation charged during the year	24,25,381	11,79,556