24.2.15. Dividends remitted in foreign currencies

The Company remits the equivalent of the dividends payable to equity shareholders and holders of ADS. For ADS holders the dividend is remitted in Indian rupees to the depository bank, which is the registered shareholder on record for all owners of the Company's ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders.

The particulars of dividends remitted are as follows :

in Rs. crore
Particulars Number of shares to which the dividends relate
Year ended March 31,
    2010
2009
Interim dividend for fiscal 2010 10,70,15,201 107
Interim dividend for fiscal 2009 10,97,63,357 110
Final dividend for fiscal 2009 10,73,97,313 145
Final dividend for fiscal 2008 10,95,11,049 79
Special dividend for fiscal 2008 10,95,11,049 219

 

24.2.16. Reconciliation of basic and diluted shares used in computing earnings per share

in Nos.
Particulars
Year ended March 31,
  2010 2009
Number of shares considered as basic weighted average shares outstanding(1) 57,04,75,923 57,24,90,211
Add : Effect of dilutive issues of shares / stock options 6,40,108 9,72,970
Number of shares considered as weighted average shares and potential shares outstanding 57,11,16,031 57,34,63,181
(1) Excludes shares held by controlled trusts


24.2.17. Provision for post-sales client support and warranties

The movement in the provision for post-sales client support and warranties is as follows :

in Rs. crore
Particulars
Year ended March 31,
  2010 2009
Balance at the beginning 92 53
Provision recognized / (reversed) (2) 39
Provision utilized (8)
Balance at the end 82 92

Provision for post-sales client support is expected to be utilized over a period of six months to one year.

24.2.18. Gratuity Plan

The following table sets out the status of the gratuity plan as required under AS 15.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets :

in Rs. crore
Particulars
As at March 31,
  2010 2009 2008 2007
Obligations at year beginning 267 224 225 183
Service cost 80 51 50 45
Interest cost 19 16 17 14
Actuarial loss / (gain) (5) 1 (8) (1)
Benefits paid (36) (25) (23) (16)
Amendment in benefit plan (37)
Obligations at year end 325 267 224 225
Defined benefit obligation liability as at the Balance Sheet is fully funded by the Group.        
Change in plan assets        
Plan assets at year beginning, at fair value 268 236 225 170
Expected return on plan assets 25 17 18 16
Actuarial gain 1 5 2 3
Contributions 69 35 14 54
Benefits paid (36) (25) (23) (18)
Plan assets at year end, at fair value 327 268 236 225
Reconciliation of present value of the obligation and the fair value of the plan assets :        
Fair value of plan assets at the end of the period 327 268 236 225
Present value of the defined benefit obligations at the end of the year 325 267 224 225
Asset recognized in the Balance Sheet 2 1 12
Assumptions        
Interest rate 7.82% 7.01% 7.92% 7.99%
Estimated rate of return on plan assets 9.00% 7.01% 7.92% 7.99%
Weighted expected rate of salary increase 7.27% 5.10% 5.10% 5.10%

 

Net gratuity cost for the years ended March 31, 2010 and March 31, 2009 comprises the following components :

in Rs. crore
Particulars
Year ended March 31,
  2010 2009
Gratuity cost for the year    
Service cost 80 51
Interest cost 19 16
Expected return on plan assets (25) (17)
Actuarial gain (6) (4)
Plan amendment amortization (3) (4)
Net gratuity cost 65 42
Actual return on plan assets 26 22

Gratuity cost, as disclosed above, is included under salaries and bonus and is segregated between software development expenses, selling and marketing expenses and general and administration expenses on the basis of number of employees.

As of March 31, 2010 and March 31, 2009, the plan assets have been primarily invested in government securities. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Effective July 1, 2007, the Company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by Rs. 37 crore, which is being amortized on a straight-line basis to the net Profit and Loss account over 10 years representing the average future service period of the employees. The unamortized liability as at March 31, 2010 and March 31, 2009 amounted to Rs. 26 crore and Rs. 29 crore, respectively and is disclosed under ‘Current Liabilities’.

The group expects to contribute approximately Rs. 61 crore to the gratuity trusts during fiscal 2011.

24.2.19.a Provident Fund

The Guidance on Implementing AS 15, Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed, are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the Company's actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the Company is unable to exhibit the related information.

The Company contributed Rs. 171 crore and Rs. 153 crore to the Provident Fund during the years ended March 31, 2010 and March 31, 2009 respectively.

24.2.19.b Superannuation

The Company contributed Rs. 91 crore and Rs. 80 crore to the Superannuation Trust during the years ended March 31, 2010 and March 31, 2009 respectively.

24.2.20. Cash and bank balances

The details of balances as on Balance Sheet dates with scheduled banks are as follows :

in Rs. crore
Balances with scheduled banks in India
As at March 31,
  2010 2009
In current accounts    
Citibank – Unclaimed dividend account 1
Citibank N.A., India 2
Deustche Bank 13 13
Deustche Bank – EEFC (Euro account) 3 27
Deustche Bank – EEFC (Swiss Franc account) 3
Deutsche Bank – EEFC (United Kingdom Pound Sterling account) 1
Deustche Bank – EEFC (U.S. dollar account) 8 12
HDFC Bank – Unclaimed dividend account 1
ICICI Bank 133 18
ICICI Bank – EEFC (Euro account) 1 1
ICICI Bank – EEFC (United Kingdom
Pound Sterling account)
2 6
ICICI Bank – EEFC (U.S. dollar account) 10 42
ICICI bank – Unclaimed dividend account 1 1
  175 124
In deposit accounts    
Andhra Bank 99 80
Allahabad Bank 150
Bank of India 881
Bank of Baroda 299 829
Bank of Maharashtra 500 537
Barclays Bank 100 140
Canara Bank 963 794
Central Bank of India 100
Corporation Bank 276 343
DBS Bank 49 25
HSBC Bank 483 283
ICICI Bank 1,435 560
IDBI Bank 909 550
ING Vysya Bank 25 53
Indian Overseas Bank 140
Jammu and Kashmir Bank 10
Kotak Mahindra Bank 61
Oriental Bank of Commerce 100
Punjab National Bank 994 480
Standard Chartered Bank 38
State Bank of Hyderabad 233 200
State Bank of India 126 2,109
State Bank of Mysore 496 500
Syndicate Bank 475 500
The Bank of Nova Scotia 350
Union Bank of India 93 85
Vijaya Bank 95 95
  9,092 8,551

 

The details of balances as on Balance Sheet dates with non-scheduled banks are as follows :

in Rs. crore
Balances with non-scheduled banks
As at March 31,
  2010 2009
In current accounts    
ABN Amro Bank, China 33 6
ABN Amro Bank, China (U.S. dollar account) 14 14
ABN Amro Bank, Taiwan 2 1
Bank of America, Mexico 18 2
Bank of America, USA 686 587
Banamex, Mexico 2
China Merchants Bank, China 1
Citibank NA, Australia 25 33
Citibank NA, Brazil 9
Citibank NA, Czech Republic (Euro account) 3
Citibank NA, Czech Republic (U.S. dollar account) 2 4
Citibank NA, New Zealand 1
Citibank NA, Japan 2 2
Citibank NA, Singapore 7
Citibank NA, Thailand 1 1
Deutsche Bank, Belgium 18 6
Deutsche Bank, France 1 1
Deutsche Bank, Germany 12 5
Deutsche Bank, Moscow (U.S.Dollar account) 1
Deutsche Bank, Netherlands 7 1
Deustche Bank, Philiphines 1
Deustche Bank, Philiphines (U.S. Dollar account) 3 1
Deutsche Bank, Poland 2
Deustche Bank, Poland (Euro account) 1
Deutsche Bank, Spain 1 1
Deustche Bank, Thailand 3 2
Deustche Bank, Thailand (U.S Dollar account) 1
Deutsche Bank, U.K. 29 58
Deutsche Bank, Singapore 1
Deutsche Bank, Switzerland 10
Deutsche Bank, Switzerland (U.S. Dollar account) 1
HSBC Bank, U.K. 2 8
ICICI Bank, U.K. 1
National Australia Bank Limited, Australia 21 30
National Australia Bank Limited, Australia (U.S. dollar account) 14 7
Nordbanken, Sweden 1
Royal Bank of Canada, Canada 20 6
The Bank of Tokyo-Mitsubishi UFJ Limited, Japan 1
Wachovia Bank, USA 7
  953 788
In deposit accounts    
Citibank N.A., Czech Republic 9 4
Citibank, Euro 3
Citibank, USD 4
Deutsche Bank, Poland 8
National Australia Bank Limited, Australia 312 228
336 232
Total cash and bank balances as per Balance Sheet 10,556 9,695