Notes to the abridged financial statements for the year ended March 31, 2011
6. 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.
The aggregate managerial remuneration under Section 198 of the Companies Act 1956, to the directors (including the managing director) is as follows :
in 
crore
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Whole-time directors |
||
Salary |
2 |
2 |
Contribution to provident and other funds |
1 |
– |
Perquisites and incentives |
6 |
7 |
Total remuneration |
9 |
9 |
Non-whole-time directors |
||
Commission |
6 |
6 |
Reimbursement of expenses |
1 |
1 |
Total remuneration |
7 |
7 |
Computation of net profit in accordance with Section 349 of the Companies Act, 1956, and calculation of commission payable to non-whole-time directors are as follows :
in crore
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Net profit after tax and before exceptional item |
6,443 |
5,755 |
Add : |
||
Whole-time directors’ remuneration |
9 |
9 |
Commission to non-whole-time-directors |
6 |
6 |
Provision for bad and doubtful debts |
3 |
(1) |
Provision for doubtful loans and advances |
– |
– |
Depreciation as per books of accounts |
740 |
807 |
Provision for taxation |
2,378 |
1,717 |
9,579 |
8,293 |
|
Less : |
||
Depreciation as envisaged under Section 350 of the Companies Act (1) |
740 |
807 |
Net profit on which commission is payable |
8,839 |
7,486 |
Commission payable to non-whole-time-directors : |
||
Maximum allowed as per the Companies Act, 1956 at 1% |
88 |
75 |
Maximum approved by the share holders at 1% (1%) |
88 |
75 |
Commission approved by the Board |
6 |
6 |
| (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 0.12 crore and 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).
7. 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)
8. Aggregate fair value of unquoted investments
As at March 31, 2011 and March 31, 2010, the aggregate fair value of unquoted investments is 119 crore and 3,497.
(Note 23.2.15 in the Notes to Accounts of the annual standalone financial statements)
9. Cash and cash equivalents
in crore
Particulars |
As at March 31, |
|
2011 |
2010 |
|
As per the Balance Sheet |
13,665 |
9,797 |
Add : Deposits with financial institutions (excluding interest accrued but not due) (1) |
1,500 |
1,500 |
15,165 |
11,297 |
|
(1) Excludes restricted deposits held with Life Insurance Corporation of India of 344 crore (281 crore) for funding leave liability.
10. Important ratios
Ratio |
Year ended March 31, |
|
2011 |
2010 |
|
Sales to total assets ratio |
1.03 |
0.95 |
Operating profit / average capital employed ratio (%) |
32.98 |
32.89 |
Return on average net worth – before exceptional item (%) |
27.69 |
28.89 |
Return on average net worth – after exceptional item (%) |
27.69 |
29.13 |
Profit after tax to sales ratio – before exceptional item (%) |
25.38 |
27.22 |
Profit after tax to sales ratio – after exceptional item (%) |
25.38 |
27.45 |
11. Details of rounded off amounts
The abridged financial statements are represented in crore as per the approval received from Department of Company Affairs (DCA) earlier. Those items which were not represented in the abridged financial statement due to rounding off to the nearest crore are given as follows :
Balance Sheet items
in crore
Schedule |
Description |
As at March 31, |
|
2011 |
2010 |
||
5 |
Related party transactions |
||
Debtors |
|||
Infosys BPO s.r.o. |
– |
0.04 |
|
Infosys Consulting India |
0.29 |
– |
|
Infosys Thailand |
– |
0.04 |
|
Infosys Sweden |
– |
0.08 |
|
Infosys Public Services |
0.11 |
– |
|
Infosys Brasil |
– |
0.62 |
|
Creditors |
|||
Infosys Brasil |
0.14 |
0.16 |
|
Infosys Mexico |
0.31 |
– |
|
Infosys Thailand |
– |
0.02 |
|
Profit & Loss items
in crore
Schedule |
Description |
Year ended March 31, |
|
2011 |
2010 |
||
5 |
Related party transactions |
||
Revenue transactions |
|||
Purchase of services – Infosys BPO s.r.o. |
– |
0.44 |
|
Purchase of services – Infosys BPO (Poland) |
0.41 |
0.03 |
|
Purchase of services – Infosys Brasil |
0.35 |
– |
|
(Note 23.3 in the Notes to Accounts of the annual standalone financial statements)
12. Transactions with key management personnel
Key management personnel comprises of directors and members of the executive council.
Particulars of remuneration and other benefits paid to whole-time directors and members of executive council during the year ended March 31, 2011 and March 31, 2010 are as follows :
in crore
Name |
Salary |
Contributions to
provident |
Perquisites and incentives |
Total remuneration |
Co-Chairman |
– |
– |
– |
– |
0.09 |
0.02 |
0.23 |
0.34 |
|
Chief Executive Officer and Managing Director |
0.34 |
0.08 |
0.69 |
1.11 |
0.32 |
0.08 |
0.61 |
1.01 |
|
Chief Operating Officer and Director |
0.34 |
0.08 |
0.66 |
1.08 |
0.31 |
0.08 |
0.56 |
0.95 |
|
Whole-time Directors |
||||
K. Dinesh |
0.34 |
0.08 |
0.68 |
1.10 |
0.32 |
0.08 |
0.61 |
1.01 |
|
T. V. Mohandas Pai |
0.43 |
0.10 |
2.56 |
3.09 |
0.36 |
0.08 |
2.69 |
3.13 |
|
Srinath Batni |
0.43 |
0.10 |
1.76 |
2.29 |
0.36 |
0.07 |
1.98 |
2.41 |
|
Executive Council Members |
||||
Chief Financial Officer |
0.38 |
0.08 |
2.15 |
2.61 |
0.30 |
0.08 |
2.06 |
2.44 |
|
Ashok Vemuri |
2.22 |
– |
3.10 |
5.32 |
2.09 |
– |
2.79 |
4.88 |
|
Chandra Shekar Kakal |
0.34 |
0.08 |
2.16 |
2.58 |
0.28 |
0.06 |
1.73 |
2.07 |
|
B. G. Srinivas |
1.94 |
– |
2.99 |
4.93 |
1.81 |
– |
2.75 |
4.56 |
|
Subhash B. Dhar |
0.30 |
0.08 |
1.69 |
2.07 |
0.24 |
0.07 |
1.42 |
1.73 |
|
(1) Effective July 9, 2009, Nandan M. Nilekani has relinquished the positions of Co-Chairman and Member of the Board.
Particulars of remuneration and other benefits of non-executive / independent directors for the year ended March 31, 2011 and March 31, 2010 are as follows :
Name |
Commission |
Sitting fees |
Reimbursement of expenses |
Total remuneration |
Independent Directors |
||||
Deepak M. Satwalekar |
0.59 |
– |
0.01 |
0.60 |
0.60 |
– |
– |
0.60 |
|
Prof. Marti G. Subrahmanyam |
0.79 |
– |
0.23 |
1.02 |
0.65 |
– |
0.20 |
0.85 |
|
Dr. Omkar Goswami |
0.51 |
– |
0.03 |
0.54 |
0.52 |
– |
0.03 |
0.55 |
|
Claude Smadja (1) |
0.23 |
– |
0.09 |
0.32 |
0.59 |
– |
0.25 |
0.84 |
|
Rama Bijapurkar (2) |
0.04 |
– |
– |
0.04 |
0.49 |
– |
0.02 |
0.51 |
|
Sridar A. Iyengar |
0.69 |
– |
0.24 |
0.93 |
0.62 |
– |
0.21 |
0.83 |
|
David L. Boyles |
0.65 |
– |
0.34 |
0.99 |
0.59 |
– |
0.15 |
0.74 |
|
Prof. Jeffrey S. Lehman |
0.67 |
– |
0.13 |
0.80 |
0.61 |
– |
0.24 |
0.85 |
|
K. V. Kamath |
0.56 |
– |
0.01 |
0.57 |
0.39 |
– |
0.02 |
0.41 |
|
R. Seshasayee (3) |
0.10 |
– |
– |
0.10 |
– |
– |
– |
– |
|
Non-executive Chairman and Chief mentor |
||||
N. R. Narayana Murthy |
0.61 |
– |
– |
0.61 |
0.57 |
– |
– |
0.57 |
|
| (1) | Retired from the Board effective August 30, 2010 |
| (2) | Resigned from the Board effective April 13, 2010 |
| (3) | Joined the Board effective January 13, 2011 |
| (Note 23.4 in the Notes to Accounts of the annual standalone financial statements) |