Notes to the consolidated financial statements

2.8 Employee benefit obligations

Employee benefit obligations comprise the following :

in crore

	As of March 31,
	2011	2010
Current
Compensated absence	140	131
	140	131
Non-current
Compensated absence	259	171
	259	171
	399	302

2.9 Provisions

Provisions comprise the following :

in crore

	As of March 31,
	2011	2010
Provision for post-sales client support	88	82

Provision for post-sales client support represents cost associated with providing post-sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 6 months to 1 year. The movement in the provision for post-sales client support is as follows :

in crore

	Year ended March 31,
	2011	2010
Balance at the beginning	82	92
Provision recognized / (reversed) (refer note 2.11)	5	(2)
Provision utilized	–	(8)
Translation difference	1	–
Balance at the end	88	82

Provision for post-sales client support for the years ended March 31, 2011 and March 31, 2010 is included in cost of sales in the statement of comprehensive income.

2.10 Other liabilities

Other liabilities comprise the following :

in crore

	As of March 31,
	2011	2010
Current
Accrued compensation to employees	732	667
Accrued expenses	771	606
Withholding taxes payable ⁽¹⁾	329	250
Retainage	26	72
Unamortized negative past service cost (refer note 2.12.1) ⁽¹⁾	22	26
Liabilities arising on consolidation of trusts	119	74
Liability towards acquisition of business	3	–
Others	10	12
	2,012	1,707
Non-current
Liability towards acquisition of business	40	40
Incentive accruals	20	21
	60	61
	2,072	1,768
Financial liabilities included in other liabilities (excluding liability towards acquisition of business)	1,678	1,452
Financial liability towards acquisition of business on a discounted basis	43	40
Financial liability towards acquisition of business on an undiscounted basis (refer note 2.3)	65	67

⁽¹⁾ Non financial liabilities

Accrued expenses primarily relates to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance. Others include unclaimed dividend balances.

2.11 Nature of expenses

in crore

	Year ended March 31,
	2011	2010
Employee benefit costs (refer note 2.12.4)	14,856	12,093
Depreciation and amortization charges (refer note 2.5 and 2.6)	862	942
Travel costs	954	692
Consultancy and professional charges	344	278
Software packages for own use	350	336
Third party items bought for service delivery	139	17
Communication costs	237	225
Cost of technical sub-contractors	603	372
Power and fuel	167	145
Office maintenance	222	165
Repairs and maintenance	134	95
Rates and taxes	54	31
Insurance charges	33	31
Commission	15	16
Branding and marketing expenses	104	73
Consumables	27	25
Provision for post-sales client support (refer note 2.9)	5	(2)
Allowance for impairment of trade receivables (refer note 2.7)	2	–
Postage and courier	13	12
Printing and stationery	14	12
Operating lease payments (refer note 2.15)	146	125
Others	118	149
Total cost of sales, selling and marketing expenses and administrative expenses	19,399	15,832

2.11.1 Break up of expenses

Cost of sales

in crore

	Year ended March 31,
	2011	2010
Employee benefit costs	12,971	10,617
Depreciation and amortization	862	942
Travel costs	690	488
Software packages for own use	350	336
Third party items bought for service delivery	139	17
Cost of technical sub-contractors	603	372
Consumables	27	25
Operating lease payments	90	73
Communication costs	82	83
Repairs and maintenance	53	29
Provision for post-sales client support	5	(2)
Other expenses	44	40
Total	15,916	13,020

Sales and marketing expenses

in crore

	Year ended March 31,
	2011	2010
Employee benefit costs	1,218	935
Travel costs	128	106
Branding and marketing	97	73
Operating lease payments	17	15
Communication costs	17	14
Commission	15	16
Consultancy and professional charges	16	23
Printing and stationery	1	1
Others	3	1
Total	1,512	1,184

Administrative expenses

in crore

	Year ended March 31,
	2011	2010
Employee benefit costs	667	541
Consultancy and professional charges	328	255
Repairs and maintenance	81	66
Office maintenance	222	165
Power and fuel	167	145
Communication costs	138	128
Travel costs	136	98
Allowance for impairment of trade receivables	2	–
Rates and taxes	54	31
Insurance charges	33	31
Operating lease payments	39	37
Postage and courier	13	12
Printing and stationery	13	11
Branding and marketing	7	–
Other expenses	71	108
Total	1,971	1,628