24.2.10. Fixed assets
For the year ended March 31, 2011, the Profit / Loss on disposal of fixed assets is less than 
1 crore and accordingly disclosed in note 24.3. Profit / Loss on disposal of fixed assets during the year ended March 31, 2010 was 2 crore.
The Company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of these agreements, the Company has the option to purchase the properties on expiry of the lease period. The Company has already paid 99% of the value of the properties at the time of entering into the lease-cum-sale agreements. These amounts are disclosed as ‘Land – leasehold’ under ‘Fixed assets’ in the financial statements. Additionally, certain land has been purchased for which the Company has possession certificate but for which the sale deeds are yet to be executed as at March 31, 2011.
24.2.11. Details of investments
The details of investments in and disposal of securities for the year ended March 31, 2011 and March 31, 2010 are as follows :
in crore
Particulars |
Year ended March 31, |
|
2011 |
2010 |
|
Investment in securities |
||
Certificates of deposit |
840 |
1,180 |
Liquid mutual fund units |
1,932 |
9,901 |
2,772 |
11,081 |
|
Redemption / Disposal of investment in securities |
||
Long-term investments |
– |
5 |
Liquid mutual fund units |
4,429 |
7,383 |
Certificates of deposit |
1,901 |
– |
6,330 |
7,388 |
|
Net movement in investment |
(3,558) |
3,693 |
24.2.12. Holding of Infosys in its subsidiaries
Name of the subsidiary |
Country of incorporation |
As at March 31, |
|
2011 |
2010 |
||
Infosys BPO |
India |
99.98% |
99.98% |
Infosys Australia |
Australia |
100% |
100% |
Infosys China(1) |
China |
100% |
100% |
Infosys Consulting |
U.S. |
100% |
100% |
Infosys Mexico(2) |
Mexico |
100% |
100% |
Infosys Sweden |
Sweden |
100% |
100% |
Infosys Shanghai(3) |
China |
100% |
– |
Infosys Brasil(4) |
Brazil |
100% |
100% |
Infosys Public Services |
U.S. |
100% |
100% |
Infosys BPO s.r.o(5) |
Czech Republic |
99.98% |
99.98% |
Infosys BPO (Poland) Sp.Z.o.o(5) |
Poland |
99.98% |
99.98% |
Infosys BPO (Thailand) Limited(5) |
Thailand |
– |
99.98% |
Infosys Consulting India Limited(6) |
India |
100% |
100% |
McCamish Systems LLC(5)(7) |
U.S. |
99.98% |
99.98% |
| (1) | During the year ended March 31, 2011, the Company made an additional investment of |
| (2) | During the year ended March 31, 2011, the Company made an additional investment of |
| (3) | On February 21, 2011, the Company incorporated a wholly-owned subsidiary, Infosys Technologies (Shanghai) Company Limited and invested |
| (4) | During the year ended March 31, 2011, the Company made an additional investment of |
| (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 a wholly-owned subsidiary, Infosys Consulting India Limited. As of March 31, 2011 and March 31, 2010, Infosys Consulting has invested an aggregate of |
| (7) | 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 |
24.2.13. Provision for doubtful debts
Periodically, the Group evaluates all customer dues to the Group for collectability. The need for provisions is assessed based on various factors including collectability of specific dues, risk perceptions of the industry in which the customer operates, general economic factors, which could effect the customer’s ability to settle. The Group normally provides for debtor dues outstanding for 180 days or longer as at the Balance Sheet date. As at March 31, 2011, the Group has provided for doubtful debts of 19 crore (21 crore as at March 31, 2010) on dues from certain customers although the outstanding amounts were less than 180 days old, since the amounts were considered doubtful of recovery. The Group pursues the recovery of the dues, in part or full.
24.2.14. Segment reporting
The Group’s operations predominantly relate to providing end-to-end business solutions that leverage technology thereby enabling clients to enhance business performance, delivered to customers globally operating in various industry segments. Accordingly, revenues represented along industry classes comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of the geographical location of customers.
The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the note on significant accounting policies.
Industry segments at the Group are primarily financial services comprising customers providing banking, finance and insurance services; manufacturing companies; companies in the telecommunications and the retail industries; and others such as utilities, transportation and logistics companies.
Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainder of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Group believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as ‘unallocated’ and directly charged against total income.
Fixed assets used in the business or liabilities contracted have not been identified for any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made.
Customer relationships are driven based on the location of the respective client. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and the Rest of the World comprising all other places except, those mentioned above and India.
Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.
Industry segments
Year ended March 31, 2011 and March 31, 2010 :
in crore
Particulars |
Financial Services |
Manufacturing |
Telecom |
Retail |
Others |
Total |
Revenues |
9,862 |
5,393 |
3,549 |
3,898 |
4,799 |
27,501 |
7,731 |
4,506 |
3,661 |
3,035 |
3,809 |
22,742 |
|
Identifiable operating expenses |
4,122 |
2,311 |
1,420 |
1,647 |
2,099 |
11,599 |
3,068 |
1,993 |
1,284 |
1,243 |
1,544 |
9,132 |
|
Allocated expenses |
2,456 |
1,370 |
899 |
990 |
1,219 |
6,934 |
1,953 |
1,139 |
926 |
767 |
964 |
5,749 |
|
Segmental operating income |
3,284 |
1,712 |
1,230 |
1,261 |
1,481 |
8,968 |
2,710 |
1,374 |
1,451 |
1,025 |
1,301 |
7,861 |
|
Unallocable expenses |
854 |
|||||
905 |
||||||
Operating income |
8,114 |
|||||
6,956 |
||||||
Other income, net |
1,211 |
|||||
934 |
||||||
Provision for investments |
– |
|||||
(9) |
||||||
Net profit before taxes and exceptional item |
9,325 |
|||||
7,899 |
||||||
Income taxes |
2,490 |
|||||
1,681 |
||||||
Net profit after taxes before exceptional item |
6,835 |
|||||
6,218 |
||||||
Exceptional item – Income on sale of investments, net of taxes |
– |
|||||
48 |
||||||
Net profit after taxes and exceptional item |
6,835 |
|||||
6,266 |
||||||
Geographic segments
Year ended March 31, 2011 and March 31, 2010 :
in crore
Particulars |
North America |
Europe |
India |
Rest of the World |
Total |
Revenues |
17,958 |
5,927 |
599 |
3,017 |
27,501 |
14,972 |
5,237 |
270 |
2,263 |
22,742 |
|
Identifiable operating expenses |
7,658 |
2,467 |
281 |
1,193 |
11,599 |
6,067 |
2,093 |
80 |
892 |
9,132 |
|
Allocated expenses |
4,555 |
1,488 |
144 |
747 |
6,934 |
3,784 |
1,325 |
68 |
572 |
5,749 |
|
Segmental operating income |
5,745 |
1,972 |
174 |
1,077 |
8,968 |
5,121 |
1,819 |
122 |
799 |
7,861 |
|
Unallocable expenses |
854 |
||||
905 |
|||||
Operating income |
8,114 |
||||
6,956 |
|||||
Other income, net |
1,211 |
||||
934 |
|||||
Provision on investments |
– |
||||
(9) |
|||||
Net profit before taxes and exceptional item |
9,325 |
||||
7,899 |
|||||
Income taxes |
2,490 |
||||
1,681 |
|||||
Net profit after taxes before exceptional item |
6,835 |
||||
6,218 |
|||||
Exceptional item – Income on sale of investments, net of taxes |
– |
||||
48 |
|||||
Net profit after taxes and exceptional item |
6,835 |
||||
6,266 |
24.2.15. Dividends remitted in foreign currencies
The Company remits the equivalent of the dividends payable to equity shareholders and holders of ADS. For ADS holders the dividend is remitted in Indian rupees to the depository bank, which is the registered shareholder on record for all owners of the Company’s ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders.
The particulars of dividends remitted are as follows :
in crore
Particulars |
Number of shares |
Year ended March 31, |
|
2011 |
2010 |
||
Interim and 30th year special dividend for fiscal 2011 |
10,87,18,147 |
435 |
– |
Interim dividend for fiscal 2010 |
10,70,15,201 |
– |
107 |
Final dividend for fiscal 2010 |
10,68,22,614 |
160 |
– |
Final dividend for fiscal 2009 |
10,73,97,313 |
– |
145 |