Schedules to the financial statements for the year ended December 31, 2010
14.2. 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.
14.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
Year ended December 31, |
||
2010 |
2009 |
|
Salaries and bonus including overseas staff expenses |
65,38,65,507 |
40,54,96,863 |
Contribution to provident and other funds |
12,89,991 |
4,58,503 |
Staff welfare |
35,33,884 |
13,50,817 |
Group health insurance |
1,30,72,487 |
88,74,296 |
Overseas travel expenses |
6,42,75,095 |
4,57,36,652 |
Visa charges and others |
13,57,731 |
10,26,281 |
Travel and conveyance |
1,49,48,563 |
73,52,681 |
Technical sub-contractors |
51,55,600 |
6,36,063 |
Software packages |
||
For own use |
– |
270,557 |
Professional charges |
3,20,25,891 |
2,09,51,265 |
Telephone charges |
1,65,73,564 |
1,21,19,922 |
Communication expenses |
1,28,60,045 |
61,51,308 |
Power and fuel |
64,35,627 |
32,87,294 |
Office maintenance |
1,04,43,338 |
40,09,390 |
Rent |
3,16,53,534 |
1,55,81,665 |
Insurance charges |
7,95,151 |
4,37,404 |
Computer maintenance |
30,58,980 |
10,91,621 |
Printing and stationery |
8,18,697 |
7,70,480 |
Consumables |
3,52,886 |
6,73,643 |
Advertisements |
85,204 |
3,26,897 |
Marketing expenses |
4,15,747 |
28,779 |
Repairs to plant and machinery |
10,66,574 |
4,18,135 |
Rates and taxes |
– |
6,108 |
Professional membership and seminar participation fees |
2,09,220 |
1,49,397 |
Postage and courier |
2,46,821 |
1,88,141 |
Books and periodicals |
4,38,321 |
50,349 |
Provision for bad and doubtful debts |
3,60,599 |
6,83,182 |
Freight charges |
2,53,275 |
57,001 |
Bank charges and commission |
2,80,314 |
1,68,091 |
Auditor’s remuneration |
||
Statutory audit fees |
9,21,231 |
726,000 |
Others |
1,08,133 |
72,600 |
Miscellaneous expenses |
5,946 |
– |
87,69,07,952 |
53,91,51,386 |
|
14.2.2. Capital commitments and contingent liabilities
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Estimated amount of unexecuted capital contracts |
||
(Net of advances and deposits) |
26,53,343 |
3,75,623 |
14.2.3. Quantitative details
The Company is primarily engaged in the development and maintenance of computer software. The production and sale of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956.
14.2.4. 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 :
in
Particulars |
Year ended December 31, |
|
2010 |
2009 |
|
Lease rentals recognized during the period |
3,20,22,113 |
1,55,81,665 |
in
Lease obligations payable : |
As at December 31, |
|
2010 |
2009 |
|
Within one year of the Balance Sheet date |
4,91,98,181 |
2,12,24,628 |
Due in a period between one year and five years |
7,81,13,723 |
7,07,48,758 |
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.
14.2.5. Activity in foreign currency :
in
As at December 31, |
2010 |
2009 |
Earnings in foreign currency (on receipt basis) |
||
ncome from software services and products |
85,39,93,334 |
59,02,95,037 |
Interest received from banks and others |
1,88,920 |
68,659 |
Expenditure in foreign currency (on payment basis) |
||
Overseas travel expenses (including visa charges) |
6,14,55,834 |
4,19,90,918 |
Professional charges |
313,74,813 |
1,92,49,142 |
Technical sub-contractors – subsidiaries |
– |
– |
Overseas salaries and incentives |
63,52,20,856 |
40,20,00,878 |
Other expenditure incurred overseas for software development |
11,12,58,367 |
6,14,28,442 |
Net earnings in foreign currency |
1,48,72,383 |
6,56,94,316 |
14.2.6. Related party transactions
List of related parties :
Name of Related party |
Country |
Holding as at December 31, |
|
2010 |
2009 |
||
Infosys Technologies Limited (Holding Company) |
India |
100% |
100% |
Details of amounts due to or due from as at December 31, 2010 and December 31, 2009 :
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Sundry debtors |
||
Infosys Technologies Limited |
2,12,60,664 |
5,03,57,858 |
Infosys BPO Limited |
21,11,080 |
– |
Infosys Tecnologia do Brasil Ltda |
– |
5,15,776 |
Sundry creditors |
||
Infosys Technologies Limited |
1,07,27,100 |
53,51,493 |
Infosys BPO Limited |
1,59,884 |
86,45,551 |
Infosys Tecnologia do Brasil Ltda |
– |
32,456 |
The details of related party transactions entered by the Company for the year ended December 31, 2010 and December 31, 2009 are as follows :
in
2010 |
2009 |
|
Capital transactions : |
||
Infosys Technologies Limited |
14,40,00,000 |
18,45,00,036 |
Revenue transactions : |
||
Sale of services |
||
Infosys Technologies Limited |
48,16,67,090 |
41,73,00,825 |
Infosys BPO Limited |
1,60,41,265 |
3,93,05,437 |
14.2.7. Income taxes
As at December 31, 2010, the Company has provided for profit tax of 2,26,23,388 (2009 2,54,53,293).
14.2.8. Cash and bank balances
The details of balances as on Balance Sheet dates with non-scheduled banks are as follows :
in
Balances with non-scheduled banks |
As at December 31, |
|
2010 |
2009 |
|
In current accounts |
||
Bank Of America |
8,33,75,660 |
24,61,37,001 |
Banamex |
1,30,52,124 |
1,05,07,294 |
In deposit accounts |
– |
– |
Bank Of America |
12,67,00,000 |
|
Total cash and bank balances as per Balance Sheet |
22,31,27,784 |
25,66,44,295 |
The details of maximum balances during the period with non-scheduled banks are as follows :
in
Maximum balance with non-scheduled banks during the period |
Year ended December 31, |
|
2010 |
2009 |
|
In current accounts |
||
Bank Of America |
29,23,75,868 |
18,62,85,945 |
Banamex – 1 |
8,63,19,598 |
8,55,60,000 |
Banamex – 2 |
3,23,30,954 |
2,23,20,000 |
14.2.9. 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.
in
Year ended December 31, |
||
2010 |
2009 |
|
Depreciation charged during the year |
23,24,623 |
19,10,627 |
14.2.10. Provision for doubtful debts
Periodically, the Company evaluates all customer dues to the Company for collectability. The need for provisions is assessed based on various factors including collectability of specific dues, risk perceptions of the industry in which the customer operates, general economic factors, which could affect the customer’s ability to settle. The Company normally provides for debtor dues outstanding for 180 days or longer as at the Balance Sheet date.