Infosys Investors - Abridged Financial Statements 2010

6. Transactions with key management personnel

Key management personnel comprise directors and members of the Executive Council.

Particulars of remuneration and other benefits paid to key management personnel during the years ended March 31, 2010 and March 31, 2009 have been detailed in Schedule 12. The aggregate managerial remuneration under Section 198 of the Companies Act 1956, to the directors (including the managing director) is as follows :

in Rs. crore

Particulars	Year ended March 31,
	2010	2009
Whole-time directors
Salary	2	2
Contribution to provident and other funds	–	–
Perquisites and incentives	7	6
Total remuneration	9	8
Non-whole-time directors
Commission	6	6
Reimbursement of expenses	1	1
Total remuneration	7	7

Computation of net profit in accordance with Section 349 of the Companies Act, 1956, and calculation of commission payable to non-whole-time directors are as follows :

in Rs. crore

Particulars	Year ended March 31,
	2010	2009
Net profit after tax before exceptional item	5,755	5,819
Add :
Whole-time directors' remuneration	9	8
Commission to non-whole-time directors	6	6
Provision for bad and doubtful debts	(1)	74
Provision for doubtful loans and advances	–	1
Depreciation as per books of account	807	694
Provision for taxation	1,717	895
	8,293	7,497
Less :
Depreciation as envisaged under Section 350 of the Companies Act⁽¹⁾	807	694
Net profit on which commission is payable	7,486	6,803
Commission payable to non-whole-time directors :
Maximum allowed as per the Companies Act, 1956 at 1%	75	68
Maximum approved by the shareholders at 1% (1%)	75	68
Commission approved by the Board	6	6

⁽¹⁾ The Company depreciates fixed assets based on estimated useful lives that are lower than those prescribed in Schedule XIV of the Companies Act, 1956. Accordingly, the rates of depreciation used by the Company are higher than the minimum prescribed by Schedule XIV.

During the years ended March 31, 2010 and March 31, 2009, Infosys BPO has provided for commission of Rs. 0.12 crore and Rs. 0.12 crore to a non-whole-time director of Infosys.

(Refer to Note 23.2.8 in the Notes to Accounts of the annual standalone financial statements).

7. Dues to micro, small and medium enterprises

The Company has no dues to micro and small enterprises during the years ended March 31, 2010 and March 31, 2009 and as at March 31, 2010 and March 31, 2009.

(Refer to Note 23.2.24 in the Notes to Accounts of the annual standalone financial statements).

8. Aggregate fair value of unquoted investments

As at March 31, 2010 and March 31, 2009, the aggregate fair value of unquoted investments is Rs. 3,507 crore and Rs. Nil.

(Refer to Note 23.2.15 in the Notes to Accounts of the annual standalone financial statements).

9. Cash and cash equivalents

in Rs. crore

Particulars	As at March 31,
	2010	2009
As per the Balance Sheet	9,797	9,039
Add : Deposits with financial institutions (excluding interest accrued but not due)⁽¹⁾	1,500	1,250
	11,297	10,289

⁽¹⁾ Excludes restricted deposits held with LIC of Rs. 281 crore (Rs. 253 crore) for funding leave liability.

10. Important ratios

Ratio	Year ended March 31,
	2010	2009
Sales to total assets ratio	0.95	1.14
Operating profit / Average capital employed ratio (%)	32.89	39.69
Return on average net worth – before exceptional item (%)	28.89	37.18
Return on average net worth – after exceptional item (%)	29.13	37.18
Profit after tax to sales ratio – before exceptional item (%)	27.22	28.72
Profit after tax to sales ratio – after exceptional item (%)	27.45	28.72

11. Details of rounded off amounts

The abridged financial statements are represented in Rs. crore as per the approval received from Department of Company Affairs (DCA) earlier. Those items which were not represented in the abridged financial statement due to rounding off to the nearest Rs. crore are as follows :

Balance Sheet items

in Rs. crore

Schedule	Description	As at March 31,
		2010	2009
5	Related party transactions
	Debtors
	Infosys BPO s.r.o.	0.04	0.02
	Infosys China	19.18	0.16
	Infosys Consulting	26.37	0.34
	Infosys Thailand	0.04	0.01
	Infosys Sweden	0.08	0.06
	Infosys Brazil	0.62	–
	Creditors
	Infosys BPO s.r.o.	0.16	0.09
	Infosys Mexico	4.97	0.04
	Infosys Thailand	0.02	–

Profit and Loss items

in Rs. crore

Schedule	Description	Year ended March 31,
		2010	2009
5	Related party transactions
	Revenue transactions
	Purchase of services – Infosys BPO s.r.o.	0.44	1.10
	Purchase of services – Infosys BPO (Poland)	0.03	–
	Sale of services – Infosys Mexico	–	0.07

Cash Flow statement items

in Rs. crore

Schedule	Description	Year ended March 31,
		2010	2009
Cash flow statement
	Profit / (loss) on sale of fixed assets	–	0.16
	Proceeds on disposal of fixed assets	–	0.21
	Provision for investments	–	1.95

(Refer to Note 23.3 in the Notes to Accounts of the annual standalone financial statements).