Notes to the consolidated financial statements

2.8 Employee benefit obligations

Employee benefit obligations comprise the following :

in Rupee Symbolcrore

As of March 31,

2011

2010

Current

Compensated absence

140

131

140

131

Non-current

Compensated absence

259

171

259

171

399

302

2.9 Provisions

Provisions comprise the following :

in Rupee Symbolcrore

As of March 31,

2011

2010

Provision for post-sales client support

88

82

Provision for post-sales client support represents cost associated with providing post-sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 6 months to 1 year. The movement in the provision for post-sales client support is as follows :

in Rupee Symbolcrore

Year ended March 31,

2011

2010

Balance at the beginning

82

92

Provision recognized / (reversed) (refer note 2.11)

5

(2)

Provision utilized

(8)

Translation difference

1

Balance at the end

88

82

Provision for post-sales client support for the years ended March 31, 2011 and March 31, 2010 is included in cost of sales in the statement of comprehensive income.

2.10 Other liabilities

Other liabilities comprise the following :

in Rupee Symbolcrore

As of March 31,

2011
2010

Current

Accrued compensation to employees

732

667

Accrued expenses

771

606

Withholding taxes payable (1)

329

250

Retainage

26

72

Unamortized negative past service cost (refer note 2.12.1) (1)

22

26

Liabilities arising on consolidation of trusts

119

74

Liability towards acquisition of business

3

Others

10

12

2,012

1,707

Non-current

Liability towards acquisition of business

40

40

Incentive accruals

20

21

60

61

2,072

1,768

Financial liabilities included in other liabilities (excluding liability towards acquisition of business)

1,678

1,452

Financial liability towards acquisition of business on a discounted basis

43

40

Financial liability towards acquisition of business on an undiscounted basis (refer note 2.3)

65

67

(1) Non financial liabilities

Accrued expenses primarily relates to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance. Others include unclaimed dividend balances.

2.11 Nature of expenses

in Rupee Symbolcrore

Year ended March 31,

2011

2010

Employee benefit costs (refer note 2.12.4)

14,856

12,093

Depreciation and amortization charges (refer note 2.5 and 2.6)

862

942

Travel costs

954

692

Consultancy and professional charges

344

278

Software packages for own use

350

336

Third party items bought for service delivery

139

17

Communication costs

237

225

Cost of technical sub-contractors

603

372

Power and fuel

167

145

Office maintenance

222

165

Repairs and maintenance

134

95

Rates and taxes

54

31

Insurance charges

33

31

Commission

15

16

Branding and marketing expenses

104

73

Consumables

27

25

Provision for post-sales client support (refer note 2.9)

5

(2)

Allowance for impairment of trade receivables (refer note 2.7)

2

Postage and courier

13

12

Printing and stationery

14

12

Operating lease payments (refer note 2.15)

146

125

Others

118

149

Total cost of sales, selling and marketing expenses and administrative expenses

19,399

15,832

2.11.1 Break up of expenses

Cost of sales

in Rupee Symbolcrore

Year ended March 31,

2011
2010

Employee benefit costs

12,971

10,617

Depreciation and amortization

862

942

Travel costs

690

488

Software packages for own use

350

336

Third party items bought for service delivery

139

17

Cost of technical sub-contractors

603

372

Consumables

27

25

Operating lease payments

90

73

Communication costs

82

83

Repairs and maintenance

53

29

Provision for post-sales client support

5

(2)

Other expenses

44

40

Total

15,916

13,020

Sales and marketing expenses

in Rupee Symbolcrore

Year ended March 31,

2011

2010

Employee benefit costs

1,218

935

Travel costs

128

106

Branding and marketing

97

73

Operating lease payments

17

15

Communication costs

17

14

Commission

15

16

Consultancy and professional charges

16

23

Printing and stationery

1

1

Others

3

1

Total

1,512

1,184

Administrative expenses

in Rupee Symbolcrore

Year ended March 31,

2011

2010

Employee benefit costs

667

541

Consultancy and professional charges

328

255

Repairs and maintenance

81

66

Office maintenance

222

165

Power and fuel

167

145

Communication costs

138

128

Travel costs

136

98

Allowance for impairment of trade receivables

2

Rates and taxes

54

31

Insurance charges

33

31

Operating lease payments

39

37

Postage and courier

13

12

Printing and stationery

13

11

Branding and marketing

7

Other expenses

71

108

Total

1,971

1,628