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). |