Schedules to the financial statements
16.2. Notes on accounts
Amounts in the financial statements have been presented in Indian Rupees.
16.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
For the year ended March 31, 2011 |
For the period from August 19, 2009 to March 31, 2010 |
|
Salaries and bonus including overseas staff expenses |
16,95,52,764 |
5,75,01,127 |
Contribution to provident and other funds |
1,21,19,362 |
74,33,096 |
Staff welfare |
38,54,786 |
9,72,439 |
Overseas group health insurance |
44,840 |
7,952 |
Overseas travel expenses |
1,94,28,111 |
72,42,313 |
Visa charges and others |
7,13,974 |
53,883 |
Traveling and conveyance |
77,76,450 |
19,49,125 |
Software packages for own use |
73,205 |
4,888 |
Professional charges |
1,14,96,642 |
19,36,303 |
Telephone charges |
27,31,564 |
8,13,378 |
Insurance charges |
7,12,067 |
– |
Rent |
55,25,784 |
27,62,892 |
Consumables |
13,19,338 |
1,26,877 |
Rates and taxes |
3,14,445 |
3,54,450 |
Auditor’s remuneration |
||
Statutory audit fees |
5,56,518 |
4,50,000 |
Miscellaneous expenses |
1,83,426 |
54,832 |
23,64,03,276 |
8,16,63,555 |
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) |
– |
21,55,200 |
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 |
50,000 |
50,000 |
16.2.3. Quantitative details
The Company is primarily engaged in providing software and technology consultancy 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.
16.2.4. Earnings and expenditure in foreign currency
in
Particulars |
For the year ended March 31, 2011 |
For the period from August 19, 2009 to March 31, 2010 |
Earnings in foreign currency (on receipts basis) |
||
Income from software services |
20,88,67,522 |
8,23,46,804 |
Expenditure in foreign currency (on payment basis) |
||
Overseas travel expenses |
15,195,376 |
4,246,418 |
Others |
1,431,350 |
44,762 |
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 agreement is as follows :
in
For the year ended March 31, 2011 |
For the period from August 19, 2009 to March 31, 2010 |
|
Lease rentals recognized during the year |
55,25,784 |
27,62,892 |
in
Lease obligations payable : |
As at |
As at |
March 31, 2011 |
March 31, 2010 |
|
Within one year of the Balance Sheet date |
27,62,892 |
55,25,784 |
Due in a period between one year and five years |
– |
27,62,892 |
Due after five years |
– |
– |
The Company has entered into non-cancellable operating lease arrangements for premises with Infosys Technologies Limited. The existing operating lease arrangement is for a period of 24 months from its dates of inception. The lease rentals paid are included as a component of services purchased from Infosys Technologies Limited (refer Note 16.2.6 below).
16.2.6. Related party transactions
List of related parties :
Name of related parties |
Country |
Infosys Technologies Limited (1) |
India |
Infosys BPO Limited (Infosys BPO) (3) |
India |
Infosys Technologies (China) Company Limited (‘Infosys China’) (3) |
China |
Infosys (Australia) Pty. Limited (3) |
Australia |
Infosys Consulting Inc. (2) |
USA |
| Notes : | (1)Infosys Technologies Limited is the ultimate holding company |
| (2)Infosys Consulting Inc. is the holding company | |
| (3)Subsidiaries of Infosys Technologies Limited |
Details of amounts due to or due from related parties are as follows :
in
Particulars |
As at March 31, |
|
2011 |
2010 |
|
Sundry debtors |
||
Infosys Technologies Limited |
1,16,43,905 |
1,01,97,771 |
Infosys China |
4,38,440 |
1,41,149 |
Infosys (Australia) Pty. Limited |
419 |
– |
Infosys Consulting Inc. |
3,70,513 |
82,31,152 |
Infosys BPO |
– |
829 |
Sundry creditors |
||
Infosys Technologies Limited |
28,92,517 |
17,67,597 |
Infosys China |
6,59,405 |
3,33,590 |
Infosys Consulting Inc. |
2,07,325 |
14,06,073 |
Infosys BPO |
8,74,938 |
23,891 |
Rental deposit |
||
Infosys Technologies Limited |
14,00,000 |
14,00,000 |
The details of the related party transactions entered into by the Company are as follows :
in
Particulars |
For the year ended March 31, 2011 |
For the period from August 19, 2009 to March 31, 2010 |
Capital transactions : |
||
Purchase of Fixed Assets |
||
Infosys Technologies Limited |
6,55,683 |
43,56,215 |
Revenue transactions : |
||
Rental deposit given |
||
Infosys Technologies Limited |
– |
14,00,000 |
Purchase of shared services including facilities and personnel |
||
Infosys Technologies Limited |
57,08,904 |
27,62,892 |
Infosys BPO |
1,02,01,466 |
17,00,000 |
Sale of services |
||
Infosys Consulting Inc. |
20,60,88,055 |
9,05,77,956 |
Infosys Technologies Limited |
5,05,29,820 |
– |
16.2.7. Transactions with key management personnel
Key management personnel comprise of the Board of Directors. List of key management personnel includes :
Particulars |
Designation |
S. D. Shibulal |
Director |
B. G. Srinivas |
Director |
Chandra Shekar Kakal |
Director |
The key management personnel is being remunerated from other companies of the group.
16.2.8. Income taxes
The provision for taxation represents amount of tax computed in accordance with income tax laws of India under the Income Tax Act, 1961. The Company, registered with the STPI, believes that it may not be able to utilize the STPI benefits. Accordingly, provision for tax has been recorded without considering the income tax benefits that may be available under STPI scheme. The Company had estimated that such benefits would have been available for previous years and had accordingly recorded for a MAT credit entitlement for 15,76,312, which was subsequently reversed in this year. Further, the Company has provided for additional income tax for 17,45,830 pertaining to the previous period. During the current year, the Company has provided for income tax for 1,41,77,474 for the year ended March 31 2011.
16.2.9. Cash and bank balances
Details of balances as on Balance Sheet dates with scheduled banks :
in
Balances with scheduled banks in India |
As at March 31, |
|
2011 |
2010 |
|
In current accounts |
||
Citibank |
2,11,25,404 |
2,33,42,086 |
Citibank – EEFC account in U.S. Dollar |
6,92,584 |
22,44,103 |
2,18,17,988 |
2,55,86,189 |
|
In deposit accounts |
||
Canara Bank |
50,000 |
50,000 |
50,000 |
50,000 |
|
Total bank balances as per Balance Sheet |
2,18,67,988 |
2,56,36,189 |
16.2.10. Earning per share
Particulars |
For the year ended March 31, 2011 |
For the period from August 19, 2009 to March 31, 2010 |
Weighted average number of shares |
10,00,000 |
5,17,808 |
Net profit after tax attributable to equity share holders ( |
1,97,40,465 |
1,24,06,887 |
Basic and diluted earnings per share ( |
19.74 |
23.96 |
Par value of shares ( |
10 |
10 |
The Company does not have any potentially dilutive equity shares.