Amounts in the abridged financial statements are presented in Indian
rupees 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 /-. One crore equals 10 million.
The previous year figures have been regrouped / reclassified, wherever
necessary to conform to the current presentation.
(Note 23.2 in the Notes to Accounts of the annual standalone financial
statements).
1. Capital commitments and contingent liabilities
in Rs. crore
Particulars As at March 31,
2011 2010
Estimated amount of unexecuted
capital contracts
(net of advances and deposits) 742 267
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. 469
crore (Rs. 241 crore) ] 271 28
in in Rs. in in Rs.
million crore million crore
Forward contracts
outstanding
In USD 500 2,230 228 1,024
In Euro 20 127 16 97
In GBP 10 72 7 48
In AUD 10 46 3 12
Options contracts outstanding
In USD – – 200 898
2,475 2,079
(1) Claims against the Company not acknowledged as debts include demand
from the Indian tax authorities for payment of additional tax of Rs.
671 crore (Rs. 214 crore),
including interest of Rs. 177 crore (Rs. 39 crore) upon completion of
their tax review for fiscal 2005, fiscal 2006 and fiscal 2007. 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 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 and 2007 is 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. No tax expense has been accrued in the financial
statements for the tax demand raised. The Management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the Companys financial position and results of operations.
(Note 23.2.2 in the Notes of Accounts of the annual standalone
financial statements)
2. 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. (Note 23.2.3 in the Notes to Accounts of the annual standalone
financial statements)
5. Related party transactions
List of related parties
(1) During the year ended March 31, 2011, the Company made an
additional investment of Rs. 42 crore (US$ 9 million) in Infosys China,
which is a wholly owned subsidiary. As of March 31, 2011, and March
31, 2010, the Company has invested an aggregate of Rs. 107 crore (US$
23 million) and Rs. 65 crore (US$ 14 million) respectively, in the
subsidiary.
(2) During the year ended March 31, 2011, the Company made an
additional investment of Rs. 14 crore (Mexican Peso 40 million) in
Infosys Mexico, which is a wholly owned subsidiary. As of March 31,
2011, and March 31, 2010, the Company has invested an aggregate of Rs.
54 crore (Mexican Peso 150 million) and Rs. 40 crore (Mexican Peso 110
million) respectively, in the subsidiary.
(3) On February 21, 2011, the Company incorporated a wholly-owned
subsidiary, Infosys Technologies (Shanghai) Company Limited and
invested Rs. 11 crore (US$ 3 million) in the subsidiary. As of March
31, 2011, the Company has invested an aggregate of Rs. 11 crore (US$ 3
million) in the subsidiary.
(4) During the year ended March 31, 2011, the Company made an
additional investment of Rs. 10 crore (BRL 4 million) in the
subsidiary. As of March 31, 2011, and March 31, 2010, the Company has
invested an aggregate of Rs. 38 crore (BRL 15 million) and Rs. 28 crore
(BRL 11 million) respectively, in the subsidiary
(5) Infosys BPO s.r.o, Infosys BPO (Poland) Sp.Z.o.o, Infosys BPO
(Thailand) Limited and McCamish Systems LLC are wholly owned
subsidiaries of Infosys BPO. During the year ended March 31, 2011,
Infosys BPO (Thailand) Limited was liquidated.
(6) During the year ended March 31, 2010, Infosys Consulting
incorporated wholly-owned subsidiary, Infosys Consulting India Limited.
As of March 31, 2011, and March 31, 2010, Infosys Consulting has
invested an aggregate of Rs. 1 crore in the subsidiary.
(3) During the year ended March 31, 2010, Infosys BPO acquired 100% of
the voting interests in McCamish Systems LLC (McCamish), a business
process solutions provider based in Atlanta, Georgia, in the United
States. The business acquisition was conducted by entering into
Membership Interest Purchase Agreement for a cash consideration of
Rs. 173 crore and a contingent consideration of Rs. 67 crore. The
acquisition was accounted as a business combination which resulted in
goodwill of Rs. 227 crore.
Infosys guarantees the performance of certain contracts entered into by
its subsidiaries.
During the year ended March 31, 2011, an amount of nil (Rs. 34 crore
for the year ended March 31, 2010) 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, 2011, an amount of Rs. 12 crore (Rs. 23
crore for the year ended March 31, 2010) has been granted to Infosys
Science Foundation, a not-for-profit foundation, in which certain
directors and officers of the Company are trustees.
(Note 23.2.7 in the Notes to Accounts of the annual standalone
financial statements)
4. Transactions with key management personnel
Key management personnel comprise directors and members of the
executive council.
Particulars of remuneration and other benefits paid to key management
personnel during the year ended March 31, 2011 and March 31, 2010 have
been detailed in Schedule 12.
(1) The Company depreciates fixed assets based on estimated useful
lives that are lower than those prescribed in Schedule XIV of the
Companies Act, 1956. Accordingly, the rates of depreciation used by the
Company are higher than the minimum prescribed by Schedule XIV.
During the year ended March 31, 2011 and March 31, 2010, Infosys BPO
has provided for commission of Rs. 0.12 crore and Rs. 0.12 crore to a
non-whole-time director of Infosys.
(Note 23.2.8 in the Notes to Accounts of the annual standalone
financial statements).
5. Dues to micro, small and medium enterprises
The Company has no dues to micro and small enterprises during the year
ended March 31, 2011 and March 31, 2010 and as at March 31, 2011 and
March 31, 2010. (Note 23.2.24 in the Notes to Accounts of the annual
standalone financial statements)
6. Aggregate fair value of unquoted investments
As at March 31, 2011 and March 31, 2010, the aggregate fair value of
unquoted investments is Rs. 119 crore and Rs. 3,497.
(Note 23.2.15 in the Notes to Accounts of the annual standalone
financial statements)
7. Transactions with key management personnel
Key management personnel comprises of directors and members of the
executive council.
|