Following are the aggregate amounts incurred on certain specific expenses that are required to be disclosed under Schedule VI to the Companies Act, 1956:
| Year ended March 31, | ||
| 2010 | 2009 | |
| Salaries and ex-gratia including overseas staff expenses | 531,24,49,497 | 480,40,03,537 |
| Staff welfare | 1,01,75,193 | 8,10,25,367 |
| Contribution to provident and other funds | 20,93,40,699 | 20,42,36,211 |
| Foreign travel expenses | 36,95,52,094 | 47,75,78,899 |
| Consumables | 1,49,08,974 | 1,72,99,591 |
| Computer maintenance | 63,39,320 | 73,74,432 |
| Cost of software for own use | 17,61,29,896 | 44,63,36,937 |
| Communication expenses | 28,05,59,334 | 28,99,68,354 |
| Consultancy charges | 37,05,00,833 | 52,23,01,160 |
| Travel and conveyance | 15,36,70,643 | 24,57,02,734 |
| Rent | 39,62,62,603 | 40,46,96,271 |
| Printing and stationery | 71,25,814 | 1,79,13,369 |
| Office maintenance | 24,65,45,292 | 22,54,66,504 |
| Legal and professional charges | 5,39,86,094 | 6,55,12,592 |
| Brand building | 69,16,780 | 70,26,470 |
| Recruitment and training expenses | 13,93,06,287 | 11,09,21,900 |
| Power and fuel | 17,70,80,350 | 17,05,90,497 |
| Insurance charges | 7,01,21,316 | 7,63,38,204 |
| Rates and taxes | 1,81,08,947 | 2,22,45,539 |
| Donations | 59,60,028 | 20,75,000 |
| Auditor's remuneration | ||
| audit fees | 20,90,000 | 18,69,397 |
| out-of-pocket expenses | – | 67,500 |
| Bank charges and commission | 12,51,323 | 76,68,535 |
| Postage and courier | 35,86,210 | 37,64,147 |
| Professional membership and seminar participation fees | 26,97,990 | 1,43,89,701 |
| Provision for bad and doubtful debts | 11,31,118 | (5,25,230) |
| Provision for bad and doubtful loans and advances | 8,62,912 | 75,17,240 |
| Marketing expenses | 63,98,467 | 2,30,86,340 |
| Other miscellaneous expenses | 1,14,11,356 | 2,33,66,831 |
| Total | 805,44,69,370 | 827,98,18,029 |
| Fringe Benefit Tax(FBT) in India included in the above | – | 3,47,04,873 |
During year ended March 31, 2010, the company has reversed provisions for operating expenses amounting to Rs. 11,88,05,772 relating to earlier periods. The nature of these expenses were primarily consultancy charges, recruitment expenses and staff welfare expenses. During the year ended March 31, 2009, the company had recorded a credit of Rs. 3,88,16,816 relating to earlier periods in its income statement pertaining to productivity commitments/volume discounts on the basis of contractual obligations.
The company is engaged in providing business process management services. The sale of such services cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of services rendered and certain information as required under paragraphs 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956.
| Year ended March 31, | ||
| 2010 | 2009 | |
| Capital goods | 6,09,28,256 | 17,52,85,809 |
| Year ended March 31, | ||
| 2010 | 2009 | |
| Salary, legal and professional charges | 1,50,51,89,183 | 1,14,92,14,274 |
| Foreign travel expenses and relocation expenses | 42,60,57,841 | 34,36,43,298 |
| Bank charges, consultancy and others | 55,41,30,936 | 9,52,50,959 |
| Communication | 14,39,18,243 | 15,54,34,750 |
| 2,62,92,96,203 | 1,74,35,43,281 | |
| Year ended March 31, | ||
| 2010 | 2009 | |
| From business process management services | 1,105,35,29,120 | 10,47,05,35,018 |
The lease rentals charged during the period and maximum obligations on long-term non-cancellable operating leases payable as per the rentals stated in the respective agreements are as follows:
| Year ended March 31, | ||
| 2010 | 2009 | |
| Lease rentals charged during the period | 39,62,62,603 | 40,46,96,271 |
| As at March 31, | ||
| 2010 | 2009 | |
| Lease obligations | ||
| Within one year of the Balance Sheet date | 10,89,75,438 | 17,11,76,942 |
| Due in a period between one year and five years | 9,35,84,295 | 20,33,20,712 |
| Later than five years | – | – |
The company has entered into non-cancellable operating lease arrangements for premises with Infosys and others. The existing operating lease arrangements extend for periods between 36 months and 72 months from their respective dates of inception. The lease rentals paid are included as a component of services purchased from Infosys Technologies Limited (also refer Note 16.2.12 below).
The company benefits from certain significant tax incentives provided to firms rendering business process management services under Indian tax laws. These incentives presently include an exemption from payment of Indian corporate income taxes for a period of ten consecutive years of operation of software development facilities designated as "Software Technology Parks" (the "STP Tax Holiday"). The Government of India recently amended the tax incentives available to companies set up in designated STPs. The period of the STP Tax Holiday available to such companies is restricted to 10 consecutive years beginning from the financial year when the unit started rendering business process management services or March 31, 2011, whichever is earlier.
The Company also has operations in a Special Economic Zone (SEZ). Income from SEZs is fully tax exempt for the first 5 years, 50% exempt for the next 5 years and 50% exempt for another 5 years subject to fulfilling certain conditions. Pursuant to the amendments in the Indian Income Tax Act, the Company has calculated its tax liability after considering Minimum Alternate Tax (MAT). The MAT liability can be carried forward and set off against the future tax liabilities. Accordingly, Rs. 41.82 crore was carried forward and shown under “Loans and Advances” in the Balance Sheet as of March 31, 2010 and Rs 22.65 crores as of March 31, 2009.
Details of balances as on Balance Sheet dates with non-scheduled banks:-
| As at March 31, | ||
| 2010 | 2009 | |
| Cash on hand | 84,850 | 94,768 |
| Balances with non-scheduled banks | As at March 31, | |
| 2010 | 2009 | |
| In current accounts | ||
| ICICI Bank, London | 1,06,84,997 | 8,56,425 |
| PNC Bank, New Jersey* | 2,24,500 | 2,52,580 |
| Bank of America, California | 8,38,42,099 | 8,52,64,767 |
| Deutsche Bank, Philippines | 3,81,24,631 | 1,18,84,388 |
| Royal Bank of Canada, Ontario | 13,14,384 | 68,66,816 |
| 13,41,90,611 | 10,51,24,976 | |
* This represents restricted bank balance, in trust account, in accordance with collection agency licensing requirements in US.
Details of balances as on Balance Sheet dates with scheduled banks:-
| Balances with scheduled banks | As at March 31, | |
| 2010 | 2009 | |
| In current accounts | ||
| Citibank | 12,44,514 | 12,26,559 |
| Deustche Bank | 64,51,133 | 1,60,49,724 |
| Deustche Bank- EEFC account in Euro | 55,91,061 | 64,10,085 |
| Deustche Bank- EEFC account in United Kingdom Pound Sterling | 50,58,140 | 28,32,419 |
| Deustche Bank- EEFC account in US dollars | 41,00,082 | 1,21,46,583 |
| ICICI Bank | 3,32,11,141 | 4,09,21,984 |
| ICICI Bank- EEFC account in Euro | 74,75,628 | 62,76,290 |
| ICICI Bank- EEFC account in United Kingdom Pound Sterling | 1,45,79,067 | 5,75,83,794 |
| ICICI Bank- EEFC account in US dollars | 3,06,23,644 | 8,48,54,226 |
| State Bank of India | 59,099 | 59,099 |
| 10,83,93,509 | 22,83,60,763 | |
| In deposit accounts | ||
| Allahabad Bank | 50,00,00,000 | |
| Bank of Baroda | – | 48,00,00,000 |
| Bank of Maharastra | – | 44,00,00,000 |
| Corporation Bank | – | 8,00,00,000 |
| HSBC Bank | – | 25,00,00,000 |
| ICICI Bank | 49,50,40,000 | 50,00,20,000 |
| IDBI Bank | – | 50,00,00,000 |
| Indian Overseas Bank | 9,00,00,000 | – |
| ING Vysya Bank | – | 28,00,00,000 |
| Punjab National Bank | 35,50,00,000 | – |
| Standard Chartered Bank | – | 38,00,00,000 |
| State Bank of Hyderabad | 24,00,00,000 | – |
State Bank of India |
23,000 | 26,00,23,000 |
| Syndicate Bank | 17,50,00,000 | – |
| 1,85,50,63,000 | 3,17,00,43,000 | |
| Maximum balances held in non-scheduled banks | Year ended March 31, | |
| 2010 | 2009 | |
| In current accounts | ||
| ICICI Bank, London | 3,46,60,072 | 3,18,91,840 |
| PNC Bank,New Jersey | 2,52,580 | 2,55,650 |
| Bank of America, California | 23,89,68,846 | 16,61,78,323 |
| Deutsche Bank, Philippines | 12,99,37,963 | 2,45,24,299 |
| Royal Bank of Canada, Ontario | 89,77,435 | 1,31,93,976 |
Deposits with financial institution and body corporate comprise:
| As at March 31, | ||
| 2010 | 2009 | |
| Deposits with financial institution: | ||
| Housing Development Finance Corporation Limited | 34,50,00,000 | 48,00,00,000 |
| 34,50,00,000 | 48,00,00,000 | |
Maximum balance held
| Year ended March 31, | ||
| 2010 | 2009 | |
| Deposits with financial institution: | ||
| Housing Development Finance Corporation Limited | 50,00,00,000 | 48,00,00,000 |
| Deposits with body corporate: | ||
| GE Capital Services India Limited | – | 25,00,00,000 |
List of Related Parties
| Name of the Related Party | Country | Holding as at March 31, | |
| 2010 | 2009 | ||
| Infosys Technologies Limited | India | Holding Company | Holding Company |
| Infosys BPO s.r.o | Czech Republic | 100% | 100% |
| Infosys BPO Poland Sp.z.o.o | Poland | 100% | 100% |
| Infosys BPO (Thailand) Limited | Thailand | 100% | 100% |
| McCamish Systems LLC ( refer to note 16.2.14a) | United States | 100% | – |
| Infosys Consulting Inc* | United States | ||
| Infosys Technologies (Australia) Pty Limited ( "Infosys Australia")* | Australia | ||
| Infosys Technologies S.de R.L.de C.V. ("Infosys Mexico")* | Mexico | ||
| Infosys Technologies (China) Co.Limited ( "Infosys China") * | China | ||
| Infosys Technologia Do Brasil LTDA ( " Infosys Brazil")* | Brazil | ||
| Infosys Consulting India Limited# | India | ||
* Wholly owned subsidiaries of Infosys Technologies Limited i.e. fellow subsidiaries.
# Wholly owned subsidiaries of Infosys Consulting Inc
List of key management personnel
Name of the Related Party |
Designation |
| T.V.Mohandas Pai | Chairman and Director |
| D. Swaminathan* | Managing Director and Chief Executive Officer |
| Amitabh Chaudhry# | Managing Director and Chief Executive Officer |
| S.D.Shibulal | Director |
| Prof.Jayanth R.Varma | Director |
| Sridar A.Iyengar | Director |
| B.G.Srinivas | Director |
| Eric S.Paternoster | Director |
* Appointed as Managing Director and Chief Executive Officer effective January 16, 2010
# Managing Director and Chief Executive Officer till January 15, 2010