Schedules to the Financial Statements for the period ended March 31, 2010

15.2.7. Transactions with key management personnel

Key management personnel comprise of directors. There has been no transactions with key management personnel during the year.

15.2.8. Income taxes

The provision for taxation includes tax liabilities in India on the company’s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries. Income from STPs are exempt from tax for the earlier of 10 years commencing from the fiscal year in which the unit commences software development or March 31, 2011. Pursuant to the changes in the Indian Income Tax Act, the Company has calculated its tax liability after considering Minimum Alternate Tax (MAT). The MAT liability can be carried forward and set off against the future tax liabilities. Accordingly a sum of Rs. 15,76,312 was carried forward and shown under ’Loans and Advances‘ in the Balance Sheet as at March 31, 2010.

15.2.9. Cash and bank balances

Details of balances as on balance sheet dates with scheduled banks:-

In Rs.
Balances with scheduled banks in India As at March 31,
In current accounts  
Citibank 2,33,42,086
Citibank-EEFC account in U.S. dollar 22,44,103


In Rs.
Balances with scheduled banks in India As at March 31,
In deposit accounts  
Canara Bank 50,000
Total cash and bank balances as per balance sheet 2,56,36,189

15.2.10. Segment reporting

The Company's Services are predominantly rendered to its holding company, Infosys Consulting Inc and all costs are incurred in India and hence segment reporting is not applicable.

15.2.11. Gratuity Plan

The following table set 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.
Particulars As at March 31,
Obligations at period beginning
Transfer of obligation 1,57,40,981
Service cost 15,40,325
Interest cost 6,15,472
Actuarial (gain)/ loss (40,436)
Benefits paid
Amendment in benefit plans
Obligations at period end 1,78,56,342
Defined benefit obligation liability as at the Balance Sheet is fully funded by the Company  
Change in plan assets  
Plans assets at period beginning, at fair value
Expected return on plan assets 19,338
Actuarial gain/ (loss) 537
Contributions 21,09,469
Benefits paid
Plans assets at period end, at fair value 21,29,344


in Rs

Particulars As at March 31,
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 21,29,344
Present value of the defined benefit obligations at the end of the period 1,78,56,342
Asset recognized in the Balance Sheet 13,983
Interest rate 7.57%
Estimated rate of return on plan assets 9.00%
Weighted expected rate of salary increase 7.27%



  Year ended
March 31,
Gratuity cost for the period  
Service cost 15,40,325
Interest cost 6,15,472
Expected return on plan assets (19,338)
Actuarial (gain) / loss (40,973)
Plan amendment amortization
Net gratuity cost 20,95,486
Actual return on plan assets 19,875

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.

During the year ended March 31, 2010, a reimbursement asset of Rs. 2 crore has been recognized towards settlement of gratuity liability from Infosys Technologies Limited.

As of March 31, 2010, 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.
The Company expects to contribute approximately Rs. 1,02,47,623 to the gratuity trust for fiscal 2011.

15.2.11.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. 39,58,869 during the year ended March 31, 2010, respectively.

15.2.11.b Superannuation

The Company contributed Rs. 35,13,689.93 to the Superannuation Trust during the year ended March 31, 2010, respectively.

15.2.12 Dues to micro and small enterprises

The company has no dues to micro and small enterprises during the quarter and year ended March 31, 2010 and as at March 31, 2010.