Schedules to the standalone financial statements for the year ended March 31, 2011
16.2. Notes on accounts
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current presentation.
16.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
Aggregate expenses |
Year ended March 31, |
|
2011 |
2010 |
|
Salaries and bonus including overseas staff expenses |
7,04,67,72,595 |
4,99,65,21,907 |
Contribution to provident and other funds |
20,95,609 |
19,85,359 |
Staff welfare |
2,58,56,703 |
1,86,48,523 |
Overseas group health insurance |
1,86,65,002 |
1,35,83,725 |
Overseas travel expenses |
22,66,37,734 |
17,27,50,379 |
Visa charges and others |
2,94,60,608 |
1,32,55,294 |
Traveling and conveyance |
4,29,11,176 |
4,71,45,974 |
Technical sub-contractors – subsidiaries |
33,06,19,544 |
22,17,92,470 |
Technical sub-contractors – others |
29,79,70,559 |
26,25,45,679 |
Software packages |
||
For own use |
2,76,78,032 |
7,83,19,925 |
For service delivery to clients |
– |
– |
Professional charges |
10,76,29,301 |
13,81,80,528 |
Telephone charges |
8,68,79,168 |
10,45,27,122 |
Communication expenses |
1,95,29,564 |
1,39,56,509 |
Power and fuel |
81,64,693 |
71,07,887 |
Office maintenance |
6,00,43,989 |
4,37,90,607 |
Guest house maintenance |
1,28,325 |
93,800 |
Commission charges |
– |
– |
Brand building |
75,02,852 |
28,33,329 |
Rent |
15,32,51,624 |
12,56,62,138 |
Insurance charges |
51,92,773 |
42,06,883 |
Computer maintenance |
6,31,74,291 |
51,45,173 |
Printing and stationery |
44,71,972 |
57,45,719 |
Consumables |
96,99,376 |
1,39,80,399 |
Donations |
11,84,660 |
40,36,152 |
Advertisements |
7,68,640 |
10,63,941 |
Marketing expenses |
4,23,29,963 |
2,84,90,957 |
Repairs to building |
1,80,684 |
1,85,971 |
Repairs to plant and machinery |
33,71,341 |
24,27,774 |
Rates and taxes |
1,72,43,970 |
72,06,236 |
Professional membership and seminar participation fees |
56,50,165 |
54,37,780 |
Postage and courier |
32,14,654 |
33,03,749 |
Provision for post-sales client support and warranties |
– |
– |
Books and periodicals |
8,73,347 |
11,92,889 |
Recruitment and Training |
39,547 |
– |
Provision for bad and doubtful debts |
67,76,557 |
3,91,776 |
Provision for doubtful loans and advances |
– |
37,934 |
Provision for Estimated Losses |
34,93,757 |
– |
Commission to non-whole time directors |
– |
– |
Sales promotion expenses |
51,177 |
4,86,228 |
Freight charges |
13,60,161 |
13,61,615 |
Bank charges and commission |
20,06,543 |
7,29,718 |
Auditor’s remuneration |
||
Statutory audit fees |
35,33,846 |
31,77,726 |
Others |
46,628 |
9,082 |
Out-of-pocket expenses |
1,35,834 |
15,271 |
Research grants |
1,60,16,507 |
85,62,228 |
Miscellaneous expenses |
65,291 |
63,936 |
8,68,26,78,764 |
6,35,99,60,290 |
|
16.2.2. Capital commitments and contingent liabilities
in
Particulars |
As at March 31, |
|
2011 |
2010 |
|
Estimated amount of unexecuted capital contracts |
||
(Net of advances and deposits) |
1,65,00,159 |
96,42,559 |
Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favor of various government authorities and others |
17,75,90,685 |
15,85,25,973 |
16.2.3. Activity in foreign currency
in
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Earnings in foreign currency (on receipts basis) |
||
Income from software services and products |
9,98,46,60,991 |
7,10,70,55,331 |
Interest received from banks and others |
22,99,19,502 |
13,39,67,805 |
Expenditure in foreign currency (on payments basis) |
||
Travel expenses (including visa charges) |
17,44,54,542 |
11,88,25,818 |
Professional charges |
10,34,53,365 |
15,40,57,850 |
Technical sub-contractors – subsidiaries |
33,01,68,128 |
26,30,79,249 |
Overseas salaries and incentives |
6,98,69,91,126 |
4,96,22,14,459 |
Other expenditure incurred overseas for software development |
44,81,65,613 |
43,35,28,935 |
Net earnings in foreign currency |
2,17,13,47,719 |
1,30,93,16,826 |
16.2.4. 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.
16.2.5. 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
Year ended March 31, |
||
2011 |
2010 |
|
Lease rentals recognized during the period |
15,32,51,624 |
12,56,62,138 |
in
Lease obligations payable |
As at March 31, |
|
2011 |
2010 |
|
Within one year of the Balance Sheet date |
16,55,00,989 |
15,17,38,727 |
Due in a period between one year and five years |
42,46,55,717 |
49,09,28,372 |
Due after five years |
38,59,54,849 |
38,01,09,935 |
The operating lease arrangements extend up to a maximum of nine years from their respective dates of inception and relates to rented overseas premises. Some of the lease agreements have a price escalation clause.
16.2.6. Related party transactions
List of related parties :
Name of subsidiaries |
Nature of Relationship |
Infosys Technologies Limited |
Controlling Entity |
Infosys BPO |
Fellow Subsidiary |
Infosys China |
Fellow Subsidiary |
Infosys Consulting |
Fellow Subsidiary |
Infosys Mexico |
Fellow Subsidiary |
Infosys Sweden |
Fellow Subsidiary |
Infosys Brasil |
Fellow Subsidiary |
Infosys Public Services, Inc. |
Fellow Subsidiary |
Infosys BPO s. r. o. |
Fellow Subsidiary |
Infosys BPO (Poland) Sp.Z.o.o |
Fellow Subsidiary |
Infosys BPO (Thailand) Limited |
Fellow Subsidiary |
Mainstream Software Pty Limited |
Fellow Subsidiary |
Infosys Consulting India Limited |
Fellow Subsidiary |
McCamish Systems LLC |
Fellow Subsidiary |
Jackie Korhonen |
Key Management Personnel |
Details of amounts due to or due from as at March 31, 2011 and March 31, 2010 :
in
Particulars |
As at March 31, |
|
2011 |
2010 |
|
Sundry debtors |
||
Infosys Technologies Limited |
50,089 |
20,05,24,000 |
Infosys China |
9,58,696 |
7,14,644 |
Infosys BPO (including subsidiaries) |
1,11,254 |
35,40,761 |
Sundry creditors |
||
Infosys Technologies Limited |
5,37,84,195 |
6,96,73,000 |
Infosys China |
16,43,545 |
1,27,27,454 |
Infosys BPO (including subsidiaries) |
33,61,170 |
9,82,030 |
Infosys Consulting India Limited |
422 |
– |
The details of the related party transactions entered into by the Company and maximum dues from related parties, in addition to the lease commitments described in note 16.2.5, for the year ended March 31, 2011 and March 31, 2010 are as follows :
in
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Revenue transactions |
||
Purchase of services |
||
Infosys Technologies Limited |
32,35,42,766 |
25,00,88,000 |
Infosys China |
70,76,777 |
1,29,90,968 |
Sale of services |
||
Infosys Technologies Limited |
8,89,00,03,830 |
6,34,35,37,000 |