Other Information For the Year ended March 31, 2009 a. Staff Cost Rs 99690.00 million Items exceeding 10% of aggregate expenditure -- b. Details of Other Income: - Interest on deposits with banks and others Rs 8360.00 million - Dividend on Investment in liquid mutual funds Rs 20.00 million - Miscellaneous Income Rs 360.00 million - Exchange differences Rs (3720.00)million Total Rs 5020.00 million Status of Investor Complaints for the quarter ended March 31, 2009 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 148 Complaints disposed off during the quarter 148 Complaints unresolved at the end of the quarter Nil Other Information For the Quarter ended March 31, 2009 a. Staff Cost Rs 26090.00 million Items exceeding 10% of aggregate expenditure -- b. Details of Other Income: - Interest on deposits with banks and others Rs 2500.00 million - Dividend on Investment in liquid mutual funds Rs 20.00 million - Miscellaneous Income Rs 50.00 million - Exchange differences Rs (90.00)million Total Rs 2480.00 million #Total public shareholding as defined under Clause 40A of the Listing Agreement (excludes shares held by founders and American Depositary Receipt holders). 1. The audited financial statements have been taken on record by the Board of Directors at its meeting held on April 15, 2009. There are no qualifications in the auditors’ reports for these periods. The information presented above is extracted from the audited financial statements as stated. 2. The financial statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated financial statements as set out in the Accounting Standard on Consolidated Financial Statements mandated by Rule 3 of the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. The financial statements of the parent company and its subsidiaries have been combined on a line-by-line basis by adding the book values of like items of assets, liabilities, income and expenses, after eliminating intra-group balances and transactions and resulting unrealized gains / losses. The consolidated financial statements are prepared by applying uniform accounting policies. 3. The Board of Directors recommended a final dividend of Rs 13.50 per share (270% on an equity share of par value of Rs 5/- each) for fiscal 2009. The payment is subject to the approval of the shareholders in the ensuing Annual General Meeting of the company. Including the interim dividend of Rs 10.00 per share (200% on an equity share of par value of Rs 5/- each) declared at the Board meeting held on October 10, 2008, the total dividend recommendation for the year is Rs 23.50 per share (470% on an equity share of par value of Rs 5/- each). 4. The Finance Act, 2007 included Fringe Benefit Tax (FBT) on Employee Stock Options Plan (ESOPs). FBT liability crystallizes on the date of exercise of stock options. During the year ended March 31, 2009 and March 31, 2008, the company issued 8,34,285 and 7,85,896 equity shares, respectively, pursuant to the exercise of stock options by certain employees under the 1998 and 1999 stock option plans. FBT on exercise of stock options of Rs 3 crore and Rs 2 crore for the year ended March 31, 2009 and March 31, 2008, respectively, has been paid by the company and subsequently recovered from the employees. Consequently, there is no impact on the profit and loss account. 5. Pursuant to the changes in the Indian Income Tax Act, the company has calculated its tax liability after considering Minimum Alternate Tax (MAT). This has not resulted in an additional tax expense as MAT can be set off against any future tax liability. Accordingly, Rs 284 crore is shown under “Loans and Advances” in the balance sheet as of March 31, 2009. 6. The tax provision for the year ended March 31, 2009, includes a net reversal of Rs 108 crore pertaining to earlier periods, comprising Rs 323 crore for provisions no longer required which is offset by a charge of Rs 215 crore due to re-assessment of uncertain tax positions. The tax provision for the year ended March 31, 2008 includes a net reversal of Rs 121 crore relating to liabilities no longer required. Further, the tax provision for the quarters ended March 31, 2009 and March 31, 2008 includes a reversal of Rs 15 crore (net) and Rs 20 crore (net), respectively. 7. Miscellaneous income of Rs 36 crore for the year ended March 31, 2009 includes a net amount of Rs 18 crore, consisting of Rs 33 crore received from Axon Group Plc, as inducement fees offset by Rs 15 crore of expenses incurred towards the transaction. 8. During the year ended March 31, 2009, Infosys received 2,420 shares of Mera Sport Technologies Pvt Ltd valued at Rs 2 crore in lieu of provision of usage rights to the software developed by Infosys. The investment was fully provided for during the year based on diminution other than temporary. 9. During the year ended March 31, 2008, the company voluntarily settled with the California Division of Labor Standards Enforcement towards possible overtime payment to certain employees in California for a total amount of Rs 102 crore. Also, the company recorded health insurance liabilities based on the maximum individual claimable amounts by employees and during the year ended March 31, 2008, the company completed its reconciliation of amounts actually claimed by employees to date, including past years, with the aggregate amount of recorded liability resulting in a write-back of net excess provision of Rs 71 crore. 10. During the year ended March 31, 2008, the company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by Rs 37 crore, which has been amortized on a straight line basis to the net profit and loss account over 10 years representing the average future service life of employees. 11. The Central Government, vide notification dated March 31, 2009, has amended Accounting Standard AS 11 The Effects of Changes in Foreign Exchange Rates, notified under the Companies (Accounting Standard) Rules, 2006. During the year ended March 31, 2008, the company early adopted Accounting Standard AS 30 Financial instruments: Recognition and Measurement, pursuant to announcement made by Institute of Chartered Accountants of India (ICAI). The company continues to follow AS 30 and consequently there is no change in its accounting policies. Matters relating to Subsidiaries: Infosys BPO During the year ended March 31, 2008, Infosys completed the purchase of 3,60,417 shares of Infosys BPO from its employee shareholders consequent to the forward share purchase agreement entered with them in February 2007. Further, during the year ended March 31, 2008, Infosys BPO acquired 100% of the equity shares of P-Financial Services Holding B.V. for a consideration of Rs 107 crore by entering into a Sale and Purchase Agreement with Koninklijke Philips Electronics NV (Philips). The transaction was accounted as a business combination and had resulted in goodwill of Rs 83 crore. During the year ended March 31, 2009, the investments held by P-Financial Services Holding B.V. in its wholly owned subsidiaries Pan-Financial Shared Services India Pvt Ltd, Infosys BPO (Poland) Sp. Z.o.o., and Infosys BPO (Thailand) Ltd were transferred to Infosys BPO, consequent to which P-Financial Services Holding B.V. was liquidated. During the quarter ended March 31, 2009, Infosys BPO merged its wholly owned subsidiary Pan-Financial Shared Services India Private Limited, retrospectively with effect from April 1, 2008, vide a scheme of amalgamation sanctioned by the court. As at March 31, 2009, Infosys holds 99.98% of the equity in Infosys BPO. Infosys Consulting During the years ended March 31, 2009 and March 31, 2008, additional investments of US$ 5 million (Rs 22 crore) and US$ 20 million (Rs 81 crore), respectively, were made in Infosys Consulting Inc., which is a wholly owned subsidiary. As of March 31, 2009, the company has invested an aggregate of US$ 45 million (Rs 193 crore) in the subsidiary. Infosys Mexico During the year ended March 31, 2008, the company incorporated Infosys Technologies S. DE R.L. de C.V., a wholly owned subsidiary in Mexico. As of March 31, 2009, the company has invested an aggregate of Mexican Peso 60 million (Rs 22 crore) in the subsidiary. Infosys China During the years ended March 31, 2009 and March 31, 2008, the company disbursed US$ 2 million (Rs 9 crore) and US$ 3 million (Rs 10 crore), respectively, as loan to its wholly owned subsidiary, Infosys Technologies (China) Co. Ltd. The loan is repayable within five years from the date of disbursement at the discretion of the subsidiary. Further, during the year ended March 31, 2009, an additional investment of US$ 4 million (Rs 19 crore) was made in Infosys China. As of March 31, 2009, the company has invested US$ 14 million (Rs 65 crore) as equity capital and US$ 10 million (Rs 51 crore) as loan in the subsidiary. Infosys Australia During the quarter ended March 31, 2009, intellectual property rights owned by Mainstream Software Pty Ltd, a wholly owned subsidiary of Infosys Australia, were sold to Infosys Technologies Ltd at a consideration of Rs 12 crore. The transaction resulted in reduction of goodwill originally recorded in the books of Infosys Australia as it related to pre-acquisition intellectual property rights. Infosys Sweden On March 5, 2009, the company incorporated a wholly owned subsidiary, Infosys Technologies (Sweden) AB., yet to be capitalised. Corporate actions: The final dividend of Rs 7.25 per share (145% on an equity share of par value of Rs 5/- each) and a special dividend of Rs 20.00 per share (400% on an equity share of par value of Rs 5/- each) for fiscal 2008 was approved by the shareholders at the Annual General Meeting of the company held on June 14, 2008 and the same was paid subsequently. S Gopalakrishnan Chief Executive Officer and Managing Director S D Shibulal Chief Operating Officer