Schedules to the financial statements for the year ended December 31, 2010
13.2. Notes on Accounts
13.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
Year ended December 31, |
||
2010 |
2009 |
|
Salaries and bonus including overseas staff expenses |
27,86,60,018 |
1,94,76,284 |
Contribution to provident and other funds |
6,08,653 |
47,864 |
Staff welfare |
25,75,209 |
3,49,062 |
Overseas travel expenses |
5,93,09,684 |
83,94,031 |
Visa charges and others |
– |
14,968 |
Travel and conveyance |
31,17,560 |
1,34,000 |
Technical sub-contractors – others |
2,09,49,696 |
1,16,69,981 |
Software packages |
||
For own use |
– |
1,64,300 |
Professional charges |
2,23,22,277 |
84,04,591 |
Telephone charges |
1,34,90,079 |
8,82,781 |
Power and fuel |
4,02,439 |
70,133 |
Communication expenses |
61,94,455 |
– |
Insurance charges |
6,53,420 |
– |
Brand building |
3,28,637 |
– |
Provision for bad and doubtful debts |
4,47,697 |
– |
Provision for post sales client support and warranties |
3,31,016 |
– |
Office maintenance |
1,36,99,704 |
35,40,333 |
Rent |
1,38,71,090 |
81,72,802 |
Computer maintenance |
2,30,717 |
10,75,148 |
Printing and stationery |
4,74,719 |
3,56,252 |
Consumables |
50,674 |
21,863 |
Books and periodicals |
1,236 |
– |
Sales promotion expenses |
31,223 |
|
Marketing expenses |
1,43,471 |
1,41,744 |
Repairs to plant and machinery |
35,479 |
2,25,250 |
Rates and taxes |
17,26,780 |
3,74,822 |
Postage and courier |
4,94,150 |
16,253 |
Bank charges and commission |
7,90,862 |
4,61,885 |
Miscellaneous expenses |
1,86,814 |
1,34,610 |
44,11,27,759 |
6,41,28,957 |
|
13.2.2. Capital commitments and contingent liabilities
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Estimated amount of unexecuted capital contracts |
||
(Net of advances and deposits) |
– |
1,56,05,150 |
13.2.3. Quantitative details
The Company is primarily engaged in the development and maintenance of computer software. The production and sale of such software 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.
13.2.4. Activity in foreign currency
in
Particulars |
Year ended December 31, |
|
2010 |
2009 |
|
Earnings in foreign currency (on receipt basis) |
||
Income from software services and products |
22,45,00,959 |
1,62,74,316 |
Interest received from banks and others |
– |
– |
Expenditure in foreign currency (on payment basis) |
||
Overseas travel expenses (including visa charges) |
5,49,16,994 |
17,93,232 |
Professional charges |
2,18,16,475 |
23,27,816 |
Technical sub-contractors – subsidiaries |
– |
– |
Overseas salaries and incentives |
25,61,80,376 |
1,44,28,139 |
Other expenditure incurred overseas for software development |
5,76,23,537 |
2,58,73,757 |
Net earnings in foreign currency |
(16,60,36,423) |
(2,81,48,628) |
13.2.5. Obligations on long-term, non-cancelable operating leases
The lease rentals charged during the period and maximum obligations on long-term, non-cancelable operating leases payable as per the rentals stated in the respective agreements are as follows :
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Lease rentals recognized during the period |
1,38,59,012 |
77,73,822 |
in
Lease obligations payable : |
As at December 31, |
|
2010 |
2009 |
|
Within one year of the Balance Sheet date |
1,93,76,582 |
1,36,61,190 |
Due in a period between one year and five years |
2,90,64,874 |
2,73,22,380 |
Due after five years |
– |
– |
The operating lease arrangements extend up to a maximum of three years from their respective dates of inception and relates to rented overseas premises. Some of the lease agreements have a price escalation clause.
13.2.6. Related party transactions
List of related parties :
Name of Holding Company |
Country |
Holding, as at December 31, |
|
2010 |
2009 |
||
Infosys Technologies Limited |
India |
100% |
100% |
Details of amounts due to or due from as at December 31, 2010 and December 2009 :
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Sundry debtors |
||
Infosys BPO Limited |
5,17,206 |
87,867 |
Infosys Mexico |
– |
32,456 |
Infosys Technologies Limited |
36,25,467 |
30,28,546 |
Sundry creditors |
||
Infosys BPO Limited |
21,91,993 |
63,67,220 |
Infosys Mexico |
– |
5,15,776 |
Infosys Poland |
1,83,56,073 |
– |
Infosys Technologies Limited |
15,72,674 |
83,78,106 |
The details of the related party transactions entered into by the Company for the years ended December 31, 2010 and December 31, 2009 is as follows :
in
Particulars |
Year ended December 31, |
|
2010 |
2009 |
|
Capital transactions : |
||
Financing transactions |
||
Infosys Technologies Limited |
20,94,57,729 |
17,14,11,417 |
Sale of services |
||
Infosys Technologies Limited |
5,44,25,960 |
2,01,14,945 |
13.2.7. 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 December 31, |
|
2010 |
2009 |
|
In current accounts |
||
Citibank SA |
3,37,21,571 |
5,71,00,613 |
3,37,21,571 |
5,71,00,613 |
|
In deposit accounts |
||
Citibank SA |
1,35,10,000 |
– |
1,35,10,000 |
||
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 |
As at December 31, |
|
2010 |
2009 |
|
In current accounts |
||
Citibank SA |
11,82,40,190 |
10,57,60,900 |