Financial statements of Infosys Public Services Inc

In Rs.
Schedules to the Balance Sheet as at
Year Ended
March 31, 2010
  Authorized Capital  
  2,50,00,000 common stock of US $0.50 par value 58,72,50,000
  Issued, subscribed and paid up  
  1,00,00,000 (Nil) common stock of US $0.50 par value, fully paid 23,48,50,000
  Balances with non-scheduled banks in foreign currency  
  In current accounts 22,32,14,968
 3 Reserves and Surplus  
  Translation difference             1,03,33,400
  Balance in Profit and Loss account               13,01,631


In Rs.
Schedules to Profit and Loss account for the
Period ended
March 31, 2010
  Professional charges 12,30,147
  Bank charges and commission 1,39,081
  Interest received on deposits with banks and others 67,597

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

6. Significant accounting policies and notes on accounts

Company overview

Infosys Public Services Inc (the Company) was incorporated on October 9,2009. The purpose of the Company is to engage in any lawful act or activity for which corporation may be organized under the Delaware General Corporation Law, as the same exists or as may hereafter be amended from time to time.

6.1. Significant accounting policies

6.1.1. Basis of preparation of financial statements

The Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

6.1.2. Use of estimates

The preparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the Financial Statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts expended to date as a proportion of the total efforts to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the Financial Statements.

6.1.3. Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date.

6.1.4. Foreign currency transactions

Foreign currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Profit or Loss account. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.
Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

6.1.5. Earnings per share

Basic earnings per share is computed by dividing the net profit / (loss) after tax by the weighted average number of equity shares outstanding during the period.

6.1.6. Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks.

6.2. Notes on accounts

6.2.1. Aggregate expenses

The aggregate amounts incurred on expenses are as follows:

In Rs.
   Year ended March 31, 2010
Professional charges  12,30,147
Bank charges and commission  1,39,081

6.2.2. Cash and bank balances

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

In Rs.
   Year ended March 31, 2010
In current accounts  
Bank of America, USA  22,32,14,968

 The details of maximum balances during the period with non-scheduled banks are as follows:

In Rs.
   Year ended March 31,2010
In current accounts  
Bank of America, USA  23,33,50,000

6.2.3. 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.

6.2.4. Related party transactions

List of related parties:

Name of Related Party
Holding, as at March 31, 2010
Infosys Technologies Limited India 100.00%

The details of the related party transactions entered into by the Company and maximum dues from related parties for the year ended March 31, 2010 is follows:

In Rs.
Year ended March 31, 2010
Capital transactions:  
Financing transactions  
Infosys Technologies Limited  23,48,50,000