23.2.11. Income taxes

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. Infosys' operations are conducted through Software Technology Parks (‘STPs’) and Special Economic Zones (‘SEZs’). Income from STPs are tax exempt for the earlier of ten years commencing from the fiscal year in which the unit commences software development, or March 31, 2011. Income from SEZs is fully tax exempt for the first five years, 50% exempt for the next 5 years and 50% exempt for another five years subject to fulfilling certain conditions. For Fiscal 2008 and 2009, the Company had calculated its tax liability under Minimum Alternate Tax (MAT). The MAT credit can be carried forward and set off against the future tax payable. In the current year, the Company has calculated its tax liability under normal provisions of the Income Tax Act and utilised the brought forward MAT Credit.

As at March 31, 2010, the Company has provided for branch profit tax of Rs. 232 crore for its overseas branches, as the Company estimates that these branch profits would be distributed in the foreseeable future. Further, the tax provision for the year ended March 31, 2010, includes a net tax reversal of Rs. 316 crore relating to SEZ units, for provisions no longer required.

23.2.12. Cash and bank balances

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

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

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

23.2.13. Loans and advances

Deposits with financial institutions:

The maximum balance (including accrued interest) held as deposits with financial institutions is as follows :

Deposit with LIC represents amount deposited to settle employee benefit obligations as and when they arise during the normal course of business. (refer to Note 23.2.23.b.)

23.2.14. Fixed assets

Profit / (loss) on the disposal of fixed assets during the year ended March 31, 2010 and March 31, 2009 is less than Rs. 1 crore and accordingly disclosed under Note 23.3.

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

The Company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of these agreements, the Company has the option to purchase the properties on expiry of the lease period. The Company has already paid 99% of the value of the properties at the time of entering into the lease-cum-sale agreements. These amounts are disclosed as ‘Land - leasehold’ under ‘Fixed assets’ in the financial statements. Additionally, certain land has been purchased for which though the Company has possession certificate, the sale deeds are yet to be executed as at March 31, 2010.

23.2.15. Details of Investments

The details of liquid mutual fund units as on March 31, 2010 are as follows :

The balances held in certificates of deposit as on March 31, 2010 are as follows :

The details of investments in and disposal of securities during the years ended March 31, 2010 and March 31, 2009 are as follows :

The details of investments purchased and sold during the year ended March 31, 2010 are as follows :

The details of investments purchased and sold during the year ended March 31, 2009 are as follows :

The details of certificates of deposit purchased and sold during the year ended March 31, 2009 are as follows :