Financial statements included in our annual filing with the U.S. Securities and Exchange Commission (SEC) in the Form 20-F have been prepared in compliance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board.
As in the previous year we will be availing NASDAQ's rule amendment which allows a company to furnish its annual reports to its ADS holders on its website in lieu of physical distribution. Accordingly the annual report and the filing with the SEC in the Form 20-F is available on our website www.infosys.com. However, a physical copy will be made available to shareholders on request.
The extract of the audited Balance Sheet and Statement of Comprehensive Income as per IFRS is provided here under:
| 2010 | 2009 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 2,698 | 2,167 |
| Available-for-sale financial assets | 569 | – |
| Investment in certificates of deposit | 265 | – |
| Trade receivables | 778 | 724 |
| Unbilled revenue | 187 | 148 |
| Derivative financial instruments | 21 | - |
| Prepayments and other current assets | 143 | 81 |
| Total current assets | 4,661 | 3,120 |
| Non-current assets | ||
| Property, plant and equipment | 989 | 920 |
| Goodwill | 183 | 135 |
| Intangible assets | 12 | 7 |
| Deferred income tax assets | 78 | 81 |
| Income tax assets | 148 | 54 |
| Other non-current assets | 77 | 52 |
| Total non-current assets | 1,487 | 1,249 |
| Total assets | 6,148 | 4,369 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Trade payables | 2 | 5 |
| Derivative financial instruments | – | 22 |
| Current income tax liabilities | 161 | 115 |
| Client deposits | 2 | 1 |
| Unearned revenue | 118 | 65 |
| Employee benefit obligations | 29 | 21 |
| Provisions | 18 | 18 |
| Other current liabilities | 380 | 290 |
| Total current liabilities | 710 | 537 |
| Non-current liabilities | ||
| Deferred income tax liabilities | 26 | – |
| Employee benefit obligations | 38 | 37 |
| Other non-current liabilities | 13 | 11 |
| Total liabilities | 787 | 585 |
| Equity | ||
| Share capital-Rs. 5 ($0.16) par value 600,000,000 equity shares authorized, issued and outstanding 570,991,592, net of treasury shares and 572,830,043 as of March 31, 2010 and 2009, respectively | 64 | 64 |
| Share premium | 694 | 672 |
| Retained earnings | 4,611 | 3,618 |
| Other components of equity | (8) | (570) |
| Total equity attributable to equity holders of the company | 5,361 | 3,784 |
| Total liabilities and equity | 6,148 | 4,369 |
| 2010 | 2009 | |
| Revenues | 4,804 | 4,663 |
| Cost of sales | 2,749 | 2,699 |
| Gross profit | 2,055 | 1,964 |
| Operating expenses: | ||
| Selling and marketing expenses | 251 | 239 |
| Administrative expenses | 344 | 351 |
| Total operating expenses | 595 | 590 |
| Operating profit | 1,460 | 1,374 |
| Other income, net | 209 | 101 |
| Profit before income taxes | 1,669 | 1,475 |
| Income tax expense | 356 | 194 |
| Net profit | 1,313 | 1,281 |
| Other comprehensive income | ||
| Reversal of impairment loss on available-for-sale financial asset | 2 | – |
| Gain transferred to net profit on sale of available-for-sale financial asset | (1) | – |
| Unrealized holding gains on available-for-sale financial asset, net of tax effect of $2 million | 6 | – |
| Exchange differences on translating foreign operations | 555 | (871) |
| Total other comprehensive income | 562 | (871) |
| Total comprehensive income | 1,875 | 410 |
| Profit attributable to: | ||
| Owners of the company | 1,313 | 1,281 |
| Non-controlling interest | – | – |
| 1,313 | 1,281 | |
| Total comprehensive income attributable to: | ||
| Owners of the company | 1,875 | 410 |
| Non-controlling interest | – | – |
| 1,875 | 410 | |
| Earnings per equity share | ||
| Basic ($) | 2.30 | 2.25 |
| Diluted ($) | 2.30 | 2.25 |
| Weighted average equity shares used in computing earnings per equity share | ||
| Basic | 570,475,923 | 569,656,611 |
Diluted |
571,116,031 | 570,629,581 |
| 1. | The functional currency of the Company is the Indian Rupee. These financial statements have been presented by translating revenue and expenditure at an average rate during the year; current assets, current liabilities, property, plant and equipment, long-term borrowings at the year-end rate; and accretions to stockholder’s equity at an average rate for the year. The difference arising on translation is shown under other components of equity. |
2. |
Exchange rates (1 US $ =) |
| 2010 | 2009 | |
| Average rate | 47.43 | 46.54 |
| Period end rate | 44.90 | 50.72 |