Auditors Report

To

The Members of Infosys Technologies (China) Co., Limited

We have audited the attached Balance Sheet of Infosys Technologies (China) Co., Limited (‘the Company’) as at December 31, 2009, the Profit and Loss account (‘Financial Statements’) of the Company for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Further, we report that:

  1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
  2. in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
  3. the Balance Sheet and the Profit and Loss account dealt with by this report are in agreement with the books of account;
  4. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
    1. in the case of the Balance Sheet, of the state of affairs of the Company as at December 31, 2009; and
    2. in the case of the Profit and Loss account, of the profit of the Company for the year ended on that date

 For Shenoy & Kamath
Chartered Accountants

M Rathnakar Kamath
Membership No. 202841
Reg. No. 006673S

Bangalore 
January 7, 2010

 

Financial Statements of Infosys Technologies (China) Co. Limited

In Rs.
Balance Sheet as at
Schedule
 December 31, 2009 December 31, 2008
SOURCES OF FUNDS      
SHAREHOLDERS’ FUNDS      
Share capital 1 65,77,00,983 45,54,25,000
Unsecured loans   47,33,08,117 49,44,72,799
    1,13,10,09,100 94,98,97,799
APPLICATION OF FUNDS      
FIXED ASSETS 2    
Original cost   61,35,02,547 53,88,63,671
Less: Accumulated depreciation   44,92,28,002 33,65,82,316
Net book value   16,42,74,545 20,22,81,355
CURRENT ASSETS, LOANS AND ADVANCES      
Sundry debtors 3 28,32,89,871 17,97,89,314
Cash and bank balances 4 45,86,83,702 10,89,70,707
Loans and advances 5 14,11,41,300 4,64,74,571
    88,31,14,873 33,52,34,592
LESS: CURRENT LIABILITIES AND PROVISIONS      
Current liabilities 6 32,59,42,748 39,38,04,249
Provisions 7 2,70,80,779 2,63,41,434
    35,30,23,528 42,01,45,683
NET CURRENT ASSETS   53,00,91,345 (8,49,11,091)
RESERVES AND SURPLUS 8 43,66,43,209 83,25,27,535
    1,13,10,09,100 94,98,97,799
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 13    

Note: The schedules referred to above are an integral part of the Balance Sheet.

For Shenoy & Kamath
Chartered Accountants		      
 
M Rathnakar Kamath
Membership No:202841		 S. D. Shibulal
Chairperson		 N. R. Narayana Murthy
Director 		 
 
  T. V. Mohandas Pai
Director		 Srinath Batni
Director		 Prasad Thrikutam
Director
 
  Ashok Vemuri
Director		 V.G. Dheeshjith
Director		  
 
Bangalore
January 7, 2010		      


In Rs.
Profit and Loss Account for the
Schedule
 Year ended December 31,
    2009 2008
Income from software services and business process management   2,07,08,11,446 1,04,22,55,698
Software development and business process management expenses 9 1,30,65,03,449 88,30,22,251
GROSS PROFIT   76,43,07,997 15,92,33,447
Selling and marketing expenses 10 5,91,82,983 4,38,25,643
General and administration expenses 11 21,16,05,803 20,88,42,120
    27,07,88,786 25,26,67,762
OPERATING PROFIT before interest and depreciation   49,35,19,211 (9,34,34,315)
Interest   2,90,48,963 2,43,33,768
Depreciation   13,06,49,713 7,48,31,003
OPERATING PROFIT before tax   33,38,20,536 (19,25,99,086)
Other income, net 12 6,94,46,873 2,97,00,198
NET PROFIT before tax   40,32,67,408 (16,28,98,888)
Provision for taxation   – –
NET PROFIT after tax   40,32,67,408 (16,28,98,888)
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 13    

Note: The schedules referred to above are an integral part of the Balance Sheet.

For Shenoy & Kamath
Chartered Accountants		      
 
M Rathnakar Kamath
Membership No:202841		 S. D. Shibulal
Chairperson		 N. R. Narayana Murthy
Director 		 
 
  T. V. Mohandas Pai
Director		 Srinath Batni
Director		 Prasad Thrikutam
Director
 
  Ashok Vemuri
Director		 V.G. Dheeshjith
Director		  
 
Bangalore
January 7, 2010