Schedules to the Financial Statements for the year ended March 31, 2011
15.2. Notes to Accounts
15.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Salaries including overseas staff expenses |
26,52,81,149 |
31,75,46,118 |
Staff welfare |
93,33,929 |
1,23,73,821 |
Contribution to provident and other funds |
8,64,63,069 |
9,81,97,631 |
Foreign travel expenses |
4,05,82,076 |
65,43,238 |
Conveyance |
16,27,418 |
44,90,515 |
Consumables |
2,24,999 |
4,38,944 |
Recruitment and training expenses |
1,67,87,861 |
1,10,10,235 |
Rent |
3,99,35,640 |
4,44,69,976 |
Telephone and communication charges |
66,16,997 |
1,00,45,976 |
Legal and professional charges |
37,64,833 |
33,78,707 |
Auditor’s remuneration |
||
Audit fees |
10,40,608 |
6,10,618 |
Bank charges and commission |
5,96,545 |
4,19,509 |
Brand building and advertisement |
50,555 |
– |
Communication expenses |
||
Computer maintenance |
||
Consultancy charges |
1,90,77,429 |
1,80,83,643 |
Cost of software for own use |
24,73,584 |
94,64,555 |
Insurance |
12,40,362 |
1,37,953 |
Other miscellaneous expenses |
6,44,346 |
32,66,846 |
Postage and courier |
13,08,764 |
19,03,436 |
Power and fuel |
1,21,20,018 |
1,35,61,450 |
Printing, stationery and office maintenance |
94,21,875 |
1,05,22,918 |
Provision for doubtful debts |
(1,73,118) |
2,64,304 |
Rates and taxes |
1,89,488 |
5,82,964 |
51,86,08,428 |
56,73,13,357 |
|
15.2.2. Quantitative details
The Company is primarily 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 sales and certain information as required under paragraphs 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956.
15.2.3. Related party transactions
List of related parties :
Name of related parties |
Country |
Holding, as at March 31, |
|
2011 |
2010 |
||
Infosys BPO Limited |
India |
100.00% |
100.00% |
Infosys Technologies Limited (1) |
India |
||
Infosys BPO (Thailand) Ltd (2) |
Thailand |
||
Infosys BPO (Poland) Sp.Z.o.o (2) |
Poland |
||
(1) Infosys Technologies Limited is holding company of Infosys BPO Limited.
(2) wholly owned subsidiaries of Infosys BPO Limited i.e. fellow subsidiaries.
Details of amounts due to or due from as at March 31, 2011 and March 31, 2010 :
in
Particulars as at |
March 31, 2011 |
March 31, 2010 |
Sundry debtors : |
||
Infosys Technologies Limited |
1,01,80,339 |
15,06,898 |
Infosys BPO Limited |
– |
1,08,076 |
Sundry creditors : |
||
Infosys Technologies Limited |
48,979 |
4,20,719 |
Infosys BPO Limited |
41,938 |
10,68,830 |
Infosys BPO (Poland) Sp.Z.o.o |
– |
85,523 |
The details of the related party transactions entered into by the Company for the year ended March 31, 2011 and March 31, 2010 are as follows :
in
Particulars |
Year ended March 31, 2011 |
Year ended March 31, 2010 |
Revenue transactions : |
||
Sale of services |
||
Infosys Technologies Limited |
5,87,78,874 |
– |
Infosys BPO Limited |
– |
6,76,385 |
Sale of shared services including facilities and personnel |
||
Infosys Technologies Limited |
712,658 |
|
Infosys BPO Limited |
11,23,824 |
3,79,696 |
Purchase of services |
||
Infosys Technologies Limited |
1,92,014 |
(47,38,402) |
Infosys BPO Limited |
– |
51,92,263 |
Purchase of shared services including facilities and personnel |
||
Infosys Technologies Limited |
– |
47,50,321 |
Infosys BPO Limited |
– |
53,68,721 |
15.2.4. Cash and bank balances
The details of balances as on Balance Sheet dates with non-scheduled banks are as follows :
in
Balances with non-scheduled banks |
As at |
|
March 31, 2011 |
March 31, 2010 |
|
Cash balance |
3,27,059 |
2,75,830 |
3,27,059 |
2,75,830 |
|
In current accounts : |
||
Citibank NA, Czech Republic |
1,16,21,236 |
35,08,264 |
Citibank NA, |
7,890 |
7,318 |
Citibank NA, USD |
18,19,019 |
1,49,96,361 |
Citibank NA, EURO |
30,83,226 |
12,91,145 |
Deutsche Bank, EUR |
1,86,826 |
– |
Deutsche Bank, USD |
4,41,843 |
– |
Deutsche Bank, CZK |
77,37,353 |
– |
2,48,97,393 |
1,98,03,088 |
|
In deposit accounts : |
||
Citibank NA, Czech Republic |
6,15,92,753 |
16,86,90,024 |
6,15,92,753 |
16,86,90,024 |
|
Total cash and bank balances as per Balance Sheet |
8,68,17,205 |
18,87,68,942 |
The details of maximum balances during the period with non-scheduled banks are as follows:
in
Maximum balance with non-scheduled banks during the period |
Year ended |
|
March 31, 2011 |
March 31, 2010 |
|
In current accounts : |
||
Citibank NA, Czech Republic (Subsidy account) |
1,39,12,901 |
2,98,80,017 |
Citibank NA, Czech Republic |
26,77,32,008 |
8,05,74,069 |
Citibank NA, Czech Republic (U.S. dollar account) |
27,32,64,579 |
10,71,84,205 |
Citibank NA, Czech Republic (Euro account) |
6,63,91,609 |
5,14,66,409 |
Deutsche Bank, Czech Republic |
1,99,69,200 |
– |
Deutsche Bank, Czech Republic (U.S. dollar account) |
11,73,423 |
– |
Deutsche Bank, Czech Republic (Euro account) |
4,82,011 |
– |
15.2.5. Provision for SLA Compliance
The provision for service level agreement compliance is based on estimates made by the management for on going contracts. In accordance with paragraphs 66 and 67 of the Accounting Standard 29, the movement in provision for service level agreement is given below
in
As at March 31, |
||
2011 |
2010 |
|
Balance at the beginning of the period |
35,23,273 |
7,058,443 |
Additional provisions made during the period |
16,23,852 |
450,058 |
Provisions used during the period |
– |
1,740,086 |
Unused amounts reversed during the period |
15,64,578 |
2,245,142 |
Balance at the end of the period |
35,82,547 |
35,23,273 |
Notes : Management believes that the aforesaid provision will be utilized within a year
15.2.6. Capital commitments and contingent liabilities
in
Year ended |
||
March 31, 2011 |
March 31, 2010 |
|
Estimated amount of unexecuted capital contracts (net of advance and deposits) |
19,45,551 |
– |