Infosys Technologies Limited (‘Infosys’ or ‘the Company’) along with its majority-owned and controlled subsidiary, Infosys BPO Limited (‘Infosys BPO’) and wholly-owned and controlled subsidiaries, Infosys Technologies (Australia) Pty Limited (‘Infosys Australia’), Infosys Technologies (China) Co. Limited (‘Infosys China’), Infosys Consulting Inc (‘Infosys Consulting’), Infosys Technologies S. de R. L. de C. V. (‘Infosys Mexico’), Infosys Technologies (Sweden) AB. (‘Infosys Sweden’), Infosys Tecnologia DO Brasil LTDA. (‘Infosys Brazil’) and Infosys Public Services Inc, USA (‘Infosys Public Services’) is a leading global technology services company. The Company provides end-to-end business solutions that leverage cutting-edge technology, thereby enabling clients to enhance business performance. The Company provides solutions that span the entire software lifecycle encompassing technical consulting, design, development, re-engineering, maintenance, systems integration, package evaluation and implementation, testing and infrastructure management services. In addition, the Company offers software products for the banking industry.
(Refer to Note 23 in the Notes to Accounts of the annual standalone financial statements).
Amounts in the abridged financial statements are presented in Rupees crore, except for per share data and as otherwise stated. Certain amounts do not appear due to rounding off, and 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).
Particulars | As at March 31,
| ||||
2010 |
2009
| ||||
Estimated amount of unexecuted capital contracts (net of advances and deposits) |
267 | 344 | |||
Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favor 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. 241 crore (Rs. 200 crore)] |
28 | 3 | |||
in million | in Rs. crore | in million | in Rs. crore | ||
Forward contracts outstanding | |||||
In USD | 228 | 1,024 | 245 | 1,243 | |
In Euro | 16 | 97 | 20 | 135 | |
In GBP | 7 | 48 | 15 | 109 | |
In AUD | 3 | 12 | – | – | |
Options contracts outstanding | |||||
In USD | 200 | 898 | 173 | 877 |
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.
(Refer to Note 23.2.3 in the Notes to Accounts of the annual standalone financial statements).
The list of related party transactions is as follows:
Name of subsidiaries |
Country
| Holding, as at March 31,
| ||
2010 | 2009 | |||
Infosys BPO | India | 99.98% | 99.98% | |
Infosys Australia | Australia | 100% | 100% | |
Infosys China | China | 100% | 100% | |
Infosys Consulting (1) | USA | 100% | 100% | |
Infosys Mexico (2) | Mexico | 100% | 100% | |
Infosys Sweden(3) | Sweden | 100% | – | |
Infosys Brazil(4) | Brazil | 100% | – | |
Infosys Public Services Inc(5) | USA | 100% | – | |
Infosys BPO s. r. o(6) | Czech Republic | 99.98% | 99.98% | |
Infosys BPO (Poland) Sp.Z.o.o(6) | Poland | 99.98% | 99.98% | |
Infosys BPO (Thailand) Limited(6) | Thailand | 99.98% | 99.98% | |
Mainstream Software Pty Limited(7) | Australia | 100% | 100% | |
Infosys Consulting India Limited(8) | India | 100% | – | |
McCamish Systems LLC(9) | USA | 99.98% | – |
(1) | During the year ended March 31, 2010 the Company made an additional investment of Rs. 50 crore (US $10 million) in Infosys Consulting, which is a wholly-owned subsidiary. As of March 31, 2010 and March 31, 2009, the Company has invested an aggregate of Rs. 243 crore (US $55 million) and Rs. 193 crore (US $45 million), respectively in the subsidiary. |
(2) | During the year ended March 31, 2010 the Company made an additional investment of Rs. 18 crore (Mexican Peso 50 million) in Infosys Mexico, which is a wholly-owned subsidiary. As of March 31, 2010 and March 31, 2009, the Company has invested an aggregate of Rs. 40 crore (Mexican Peso 110 million) and Rs. 22 crore (Mexican Peso 60 million), respectively in the subsidiary. |
(3) | During the year ended March 31, 2009, the Company incorporated wholly-owned subsidiary, Infosys Technologies (Sweden) AB, which was capitalized on July 8, 2009. |
(4) | On August 7, 2009, the Company incorporated wholly-owned subsidiary, Infosys Tecnologia DO Brasil LTDA. As of March 31, 2010 the Company has invested an aggregate of Rs. 28 crore (BRL 11 million) in the subsidiary. |
(5) | On October 9, 2009, the Company incorporated wholly-owned subsidiary, Infosys Public Services Inc. As of March 31, 2010, the Company invested Rs. 24 crore (US $5 million) in the subsidiary. |
(6) | 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. |
(7) | Mainstream Software Pty Limited is a wholly-owned subsidiary of Infosys Australia. |
(8) | On August 19, 2009, Infosys Consulting Inc incorporated a wholly-owned subsidiary, Infosys Consulting India Limited. As of March 31, 2010, Infosys Consulting has invested Rs. 1 crore in the subsidiary. |
(9) | On December 4, 2009, Infosys BPO acquired 100% of the voting interests in McCamish Systems LLC (McCamish), a business process solutions provider based in Atlanta, Georgia, in the U.S. 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 completed during the year and 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.
The details of amounts due to or due from as at March 31, 2010 and March 31, 2009 are as follows :
Particulars | As at March 31,
| ||
2010 | 2009 | ||
Loans and advances | |||
Infosys China | 46 | 51 | |
Sundry debtors | |||
Infosys China | 19 | – | |
Infosys Australia | 7 | 4 | |
Infosys Mexico | 1 | 1 | |
Infosys Consulting | 26 | – | |
Infosys Brazil | 1 | – | |
Infosys BPO (Including subsidiaries) | 2 | – | |
Sundry creditors | |||
Infosys China | 18 | 4 | |
Infosys Australia | 20 | 16 | |
Infosys BPO (Including subsidiaries) | 7 | 1 | |
Infosys Consulting | 43 | – | |
Infosys Consulting India | 1 | – | |
Infosys Mexico | 5 | – | |
Infosys Sweden | 1 | – | |
Deposit taken for shared services | |||
Infosys BPO | 7 | 3 |
The details of the related party transactions entered into by the Company and maximum dues from subsidiaries for the years ended March 31, 2010 and March 31, 2009 are as follows :
Particulars | Year ended March 31,
| ||
2010 | 2009 | ||
Capital transactions : | |||
Financing transactions | |||
Infosys Consulting | 50 | 22 | |
Infosys China | – | 19 | |
Infosys Mexico | 18 | – | |
Infosys Brazil | 28 | – | |
Infosys Public Services | 24 | – | |
Loans / Advances | |||
Infosys China | – | 10 | |
Revenue transactions : | |||
Purchase of services | |||
Infosys Australia | 634 | 471 | |
Infosys China | 134 | 81 | |
Infosys Consulting | 378 | 275 | |
Infosys Sweden | 11 | – | |
Infosys BPO (Including subsidiaries) | 3 | 1 | |
Infosys Brazil | 5 | – | |
Infosys Mexico | 45 | 33 | |
Purchase of shared services including facilities and personnel | |||
Infosys BPO (Including subsidiaries) | 53 | 32 | |
Interest income | |||
Infosys China | 3 | 3 | |
Sale of services | |||
Infosys Australia | 25 | 10 | |
Infosys China | 10 | 2 | |
Infosys Consulting | 25 | 4 | |
Infosys BPO (Including subsidiaries) | – | 1 | |
Sale of shared services including facilities and personnel | |||
Infosys BPO (Including subsidiaries) | 71 | 53 | |
Infosys Consulting | 4 | 3 | |
Maximum balances of loans and advances | |||
Infosys Australia | 51 | 35 | |
Infosys China | 48 | 51 | |
Infosys BPO (Including subsidiaries) | 4 | – | |
Infosys Mexico | 4 | 4 | |
Infosys Consulting | 35 | 26 |
During the year ended March 31, 2010, an amount of Rs. 34 crore (Rs. 20 crore for the year ended March 31, 2009) 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, 2010, an amount of Rs. 23 crore (Rs. 15 crore for the year ended March 31, 2009) has been granted to Infosys Science Foundation, a not-for-profit foundation, in which certain directors and officers of the Company are trustees.
(Refer to Note 23.2.7 in the Notes to of the annual standalone financial statements).