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Infosys
BSE: 500209|NSE: INFY|ISIN: INE009A01021|SECTOR: Computers - Software
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« Mar 11
Notes to Accounts Year End : Mar '12
Amounts in the abridged financial statements are presented in Rs crore,
 except for per share data and as otherwise stated. Certain amounts that
 are required to be disclosed and do not appear due to rounding off are
 detailed in note 11 . All exact amounts are stated with the suffix
 Rs /-''. One crore equals 10 million.
 
 Explanation to the abridged financial statement
 
 1.  Assets and liabilities include balances which are both current and
 non-current in nature.
 
 2.  Cash and cash equivalents in the Cash Flow statement include cash
 and bank balance and deposits with financial institutions of Rs 1,500
 crore each as of March 31, 2012 and March 31, 2011 included under other
 current assets in the Balance Sheet.
 
 3.  Software development expenses in the annual standalone financial
 statements also include salaries, wages and employee benefit and
 provision for post-sales client support and warranties, separately
 shown in this statement.
 
 4.  Selling expenses in the annual standalone financial statements also
 include salaries, wages and employee benefits, separately shown in this
 statement.
 
 5.  Managerial remuneration excludes remuneration paid to Executive
 Council members.
 
 The previous year figures have been re-grouped / re-classified,
 wherever necessary to conform to the current presentation. (Note 2 in
 the Notes to Accounts of the annual standalone financial statements).
 
 6.  Capital commitments and contingent liabilities
 
                                                           in Rs crore
 
 Particulars                                  As at March 31,
                                               2012                2011
 
 Contingent liabilities :
 
 Outstanding guarantees and 
 counter guarantees to various 
 banks, in respect of the
 guarantees given by those 
 banks in favour of various 
 government authorities and others               3                   3
 
 Claims against the Company, not 
 acknowledged as debts (1)
 [Net of amount paid to statutory 
 authorities Rs 1,114 crore (Rs 469
 crore)]                                        72                 271
 
 Commitments :
 
 Estimated amount of unexecuted 
 capital contracts (net of advances
 and deposits)                                 949                 742
                                     in
                                     million   in Rs 
                                               crore   in 
                                                       million    in Rs 
                                                                  crore
 
 Forward contracts outstanding
 
 In USD                                677   3,445       500     2,230
 
 In Euro                                20     136        20       127
 
 In GBP                                 20     163        10        72
 
 In AUD                                 23     121        10        46
 
 Options contracts outstanding
 
 In USD                                 50     254          _        _
 
                                             4,119               2,475
 
 1 Claims against the Company not acknowledged as debts include demand
 from the Indian Income tax authorities for payment of additional tax
 ofRs 1,088 crore C 671 crore), including interest of Rs 313 crore C 177
 crore) upon completion of their tax review for fiscal 2005, 2006, 2007
 and 2008. The tax demands are mainly on account of disallowance of a
 portion of the deduction claimed by the Company under Section 10A of
 the Income Tax Act. The deductible amount is determined by the ratio of
 export turnover to total turnover. The disallowance arose from certain
 expenses incurred in foreign currency being reduced from export
 turnover but not reduced from total turnover. The tax demand for fiscal
 2007 and fiscal 2008 also includes disallowance of portion of profit
 earned outside India from the STP units and disallowance of profits
 earned from SEZ units. The matter for fiscal 2005, 2006, 2007 and
 fiscal 2008 are pending before the Commissioner of Income Tax (Appeals)
 Bangalore.
 
 The Company is contesting the demands and the Management, including its
 tax advisors, believes that its position will likely be upheld in the
 appellate process. The Management believes that the ultimate outcome of
 this proceeding will not have a material adverse effect on the
 Company''s financial position and results of operations.
 
 (Note 2.20 in the Notes to Accounts of the annual standalone financial
 statements).
 
 7.  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 5(viii)(c) of general instructions for preparation of the
 statement of Profit and Loss as per revised Schedule VI to the
 Companies Act, 1956.
 
 (Note 2.21 in the Notes to Accounts of the annual standalone financial
 statements).
 
 1) On October 7, 2011, the Board of Directors of Infosys Consulting
 Inc., approved the termination and winding down of the entity, and
 entered into a scheme of amalgamation and initiated its merger with
 Infosys Limited. The termination of Infosys Consulting Inc.  became
 effective on January 12,2012, in accordance with the Texas Business
 Organizations Code. Effective January 12,2012, the assets and
 liabilities of Infosys Consulting Inc., have been transferred to
 Infosys Limited.
 
 2) Wholly-owned subsidiaries of Infosys BPO. During the year ended
 March 31, 2011 Infosys BPO (Thailand) Limited was liquidated.
 
 (3) On February 9, 2012, Infosys Consulting India Limited filed a
 petition in the Honorable High Court of Karnataka for its merger with
 Infosys Limited.
 
 (4) On January 4, 2012, Infosys BPO acquired 100% of the voting
 interest in Portland Group Pty. Ltd.
 
 Infosys guarantees the performance of certain contracts entered into by
 its subsidiaries.
 
 During the year ended March 31, 2012, an amount of Rs 20 crore (nil for
 the year ended March 31, 2011) was donated to Infosys Foundation, a
 not-for-profit foundation, in which certain directors of the Company
 are trustees.
 
 During the year ended March 31, 2012, an amount of nil (Rs 12 crore for
 the year ended March 31, 2011) has been granted to Infosys Science
 Foundation, a not-for-profit foundation, in which certain directors and
 officers of the Company are trustees.
 
 8.  Dues to micro, small and medium enterprises
 
 The Company has no dues to micro, small and medium enterprises during
 the year ended March 31, 2012 and March 31, 2011 and as at March 31,
 2012 and March 31, 2011. (Note 2.33 in the Notes to Accounts of the
 annual standalone financial statements).
 
 9.  Aggregate fair value of unquoted investments
 
 As at March 31, 2012 and March 31, 2011, the aggregate fair value of
 unquoted investments is Rs 341 crore and Rs 119 crore. (Note 2.10 in the
 Notes to Accounts of the annual standalone financial statements).
 
 10.  Exceptional item
 
 During the quarter and year ended March 31, 2012, the Company received
 dividend of Rs 484 crore, net of taxes of Rs 94 crore from its
 wholly-owned subsidiary Infosys Australia.
 
 (Note 2.34 in the Notes to Accounts of the annual standalone financial
 statements).
Source : Dion Global Solutions Limited
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