Schedules to the financial statements for the year ended March 31, 2011
13.2 Notes on Accounts
13.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in 
Year ended |
Period ended |
|
March 31, 2011 |
March 31, 2010 |
|
Salaries and bonus excluding overseas staff expenses |
97,66,06,660 |
36,31,09,918 |
Staff welfare |
46,32,747 |
31,52,994 |
Contribution to provident and other funds |
||
Foreign Travel expenses |
52,95,790 |
39,22,155 |
Consumables |
10,19,613 |
48,05,926 |
Computer maintenance |
9,89,64,309 |
3,50,59,727 |
Cost of software for own use |
3,00,19,370 |
31,58,307 |
Communication expenses |
1,08,24,807 |
32,72,362 |
Consultancy charges |
7,75,82,531 |
|
Travel and conveyance |
2,20,59,530 |
21,69,293 |
Rent |
3,23,08,734 |
1,23,07,230 |
Printing & stationery |
53,758 |
18,02,151 |
Legal & professional charges |
40,68,39,376 |
22,91,169 |
Brand building |
22,65,819 |
5,69,923 |
Recruitment & training expenses |
7,78,680 |
4,72,391 |
Power & fuel |
14,80,341 |
2,25,253 |
Insurance charges |
– |
36,78,703 |
Rates & taxes |
28,32,921 |
9,77,258 |
Auditor’s remuneration : |
||
Audit fees |
12,00,490 |
6,17,715 |
Bank charges & commission |
8,53,402 |
91,979 |
Postage & courier |
87,22,641 |
38,22,671 |
Marketing expenses |
6,32,655 |
1,07,705 |
Sales promotion |
4,47,262 |
1,59,726 |
Other miscellaneous expenses |
5,33,48,640 |
82,01,045 |
1,66,11,87,544 |
53,15,58,132 |
13.2.2. Related party transactions
List of related parties :
Name of related parties |
Country |
Holding, as at March 31, |
|
March 31, 2011 |
March 31, 2010 |
||
Infosys BPO Limited |
India |
100.00% |
100.00% |
Infosys Technologies Limited |
India |
0.00% |
0.00% |
Infosys Consulting |
U. S. |
0.00% |
0.00% |
On December 4, 2009, Infosys BPO acquired 100% of the voting interests in McCamish Systems LLC (McCamish), a business process solutions provider based in Atlanta, Georgia, in the United States. The business acquisition was conducted by entering into Membership Interest Purchase Agreement for a cash consideration of 171 crore and a contingent consideration of 67 crore. The acquisition was completed during the year and accounted as a business combination which resulted in goodwill of 227 crore.
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 |
446 |
97,63,056 |
Sundry creditors : |
||
Infosys Technologies Limited |
1,93,19,089 |
11,89,401 |
Infosys Consulting |
19,37,360 |
– |
The details of the related party transactions entered into by the Company and maximum dues from subsidiaries for the year ended March 31, 2011 and March 31, 2010 are as follows :
in
Particulars |
As at March 31, |
|
2011 |
2010 |
|
Capital transactions : |
||
Infosys BPO Limited |
17,73,45,985 |
15,49,993 |
Revenue transactions : |
||
Sale of services : |
||
Infosys BPO Limited |
2,70,308 |
– |
Infosys Technologies Limited |
10,53,84,310 |
80,35,068 |
Purchase of services : |
||
Infosys Technologies Limited |
20,43,19,844 |
– |
Infosys Consulting |
8,36,52,246 |
– |
Infosys BPO Limited |
11,769,143 |
– |
Sale of shared services including facilities and personnel : |
||
Infosys Technologies Limited |
3,55,61,135 |
18,89,300 |
Infosys BPO Limited |
2,52,74,559 |
– |
Purchase of shared services including facilities and |
||
Infosys Consulting |
8,63,674 |
– |
Infosys BPO Limited |
– |
23,90,915 |
Infosys Technologies Limited |
3,90,00,061 |
– |
13.2.3. 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 |
2010 |
|
Cash balance |
– |
22,450 |
– |
22,450 |
|
In current accounts : |
||
Wachovia Bank N.A, U.S. |
– |
6,51,16,163 |
Bank of America, U.S. |
1,38,97,624 |
– |
Bank of America, U.S. – Trust Fund |
2,23,000 |
– |
14,120,624 |
65,116,163 |
|
Total cash and bank balances as per Balance Sheet |
14,120,624 |
65,138,613 |
The details of maximum balances during the period with non-scheduled banks are as follows:
in
Maximum balance with non-scheduled banks during the year |
Year ended March 31, |
|
2011 |
2010 |
|
In current accounts : |
||
Wachovia Bank N.A |
11,22,73,493 |
23,90,23,722 |
Bank of America, California |
16,98,52,950 |
– |
Bank of America – Trust account, California |
2,23,000 |
– |
13.2.4. Provision for SLA compliance
The provision for service level agreement compliance is based on estimates made by the management for ongoing contracts. In accordance with paragraphs 66 and 67 of the Accounting Standard 29, the movement in provision for service level agreement is as follows :
in
As at March 31, |
||
2011 |
2010 |
|
Balance at the beginning of the period |
10,195,668 |
– |
Additional provisions made during the period |
2,429,181 |
10,195,668 |
Provisions used during the period |
– |
– |
Unused amounts reversed during the period |
2,187,552 |
– |
Balance at the end of the period |
10,437,297 |
10,195,668 |
Management believes that the aforesaid provision will be utilized within a year.
13.2.5. Capital commitments and contingent liabilities
in
Year ended March 31, |
||
2011 |
2010 |
|
Estimated amount of unexecuted capital contracts (net of advance and deposits) |
1,38,63,014 |
– |