15.2. Notes on accounts
Amounts in the financial statements are presented in Rupees.
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current presentation.
15.2.1. Aggregate expenses
The aggregate amounts incurred on expenses are as follows :
in
Year ended December 31, |
||
2010 |
2009 |
|
Salaries and bonus including overseas staff expenses |
1,97,52,11,246 |
1,15,50,89,393 |
Contribution to provident and other funds |
19,03,860 |
6,72,848 |
Staff welfare |
5,32,17,814 |
2,93,25,662 |
Group health insurance |
21,95,309 |
20,38,960 |
Travel expenses |
17,40,67,486 |
8,66,04,336 |
Technical sub-contractors – others |
7,10,98,937 |
7,55,21,523 |
Software packages |
||
For own use |
58,08,252 |
62,31,606 |
Professional charges |
6,17,69,976 |
2,70,25,781 |
Telephone charges |
62151294 |
41985900 |
Power and fuel |
4,04,70,293 |
2,20,38,237 |
Office maintenance |
5,14,27,115 |
1,69,62,111 |
Commission charges |
– |
– |
Brand building |
1,55,876 |
1,98,241 |
Rent |
12,09,35,878 |
7,88,16,766 |
Insurance charges |
39,52,744 |
33,56,657 |
Repair and maintenance |
2,04,34,249 |
1,69,40,438 |
Printing and stationery |
91,43,443 |
42,02,138 |
Consumables |
8,57,448 |
26,49,021 |
Donations |
– |
13,680 |
Advertisements |
2,52,000 |
9,79,912 |
Marketing expenses |
23,59,256 |
16,94,736 |
Repairs to plant and machinery |
38,87,095 |
21,25,356 |
Rates and taxes |
8,37,049 |
12,59,108 |
Professional membership and seminar participation fees |
18,86,424 |
5,81,606 |
Postage and courier |
26,09,212 |
8,84,703 |
Books and periodicals |
2,76,443 |
34,961 |
Provision for bad and doubtful debts |
(7,39,638) |
(22,65,881) |
Provision for doubtful loans and advances |
13,85,248 |
5,28,909 |
Bank charges and commission |
9,94,820 |
6,04,235 |
Auditor’s remuneration |
||
Statutory audit fees |
13,80,410 |
12,89,074 |
Miscellaneous expenses |
7,39,047 |
(97,781) |
2,67,06,68,588 |
157,72,92,235 |
15.2.2. Capital commitments and contingent liabilities
in
Particulars |
As at December 31, |
|
2010 |
2009 |
|
Estimated amount of unexecuted capital contracts |
||
(Net of advances and deposits) |
6,75,03,600 |
29,04,041 |
15.2.3. Activity in foreign currency
in
Particulars |
Year ended December 31, |
|
2010 |
2009 |
|
Earnings in foreign currency (on receipts basis) |
||
Income from software services and products |
2,85,04,94,482 |
1,54,56,08,386 |
Expenditure in foreign currency (on payments basis) |
||
Travel expenses (including visa charges) |
1,73,69,845 |
1,08,94,369 |
Net earnings in foreign currency |
2,83,31,24,637 |
1,53,47,14,017 |
15.2.4. Obligations on long-term, non-cancelable operating leases
The lease rentals charged during the period and maximum obligations on long-term, non-cancelable operating leases payable as per the rentals stated in the respective agreements are as follows :
in
Year ended December 31, |
||
2010 |
2009 |
|
Lease rentals recognized during the period |
12,09,35,878 |
7,88,16,766 |
in
Lease obligations payable : |
As at December 31, |
|
2010 |
2009 |
|
Within one year of the Balance Sheet date |
15,03,68,064 |
5,37,13,218 |
Due in a period between one year and five years |
44,54,07,626 |
1,38,80,541 |
Due after five years |
– |
– |
The operating lease arrangements extend up to a maximum of five years from their respective dates of inception and relates to rented overseas premises. Some of the lease arrangements have a price escalation clause.
15.2.5. Related party transactions
Name of related party |
Country |
Holding as at December 31, |
|
2010 |
2009 |
||
Infosys Technologies Limited |
India |
100% |
100% |
Infosys guarantees the performance of certain contracts entered into by its subsidiaries
Details of amounts due to or due from as at December 31, 2010 and December 31, 2009 :
in
Particulars |
As at December 31, |
|
|
2010 |
2009 |
Loans and advances |
||
Infosys Technologies Limited |
23,17,14,154 |
47,33,08,117 |
Sundry debtors |
||
Infosys Technologies Limited |
25,61,20,182 |
24,33,19,094 |
Infosys Technologies (Australia) Pty. Limited |
12,05,964 |
– |
Infosys BPO Limited (including subsidiaries) |
89,66,728 |
36,66,535 |
Infosys Consulting, Inc. |
6,65,538 |
– |
Sundry creditors |
||
Infosys Technologies Limited |
35,45,78,316 |
26,12,25,904 |
Infosys Technologies (Australia) Pty. Limited |
7,92,172 |
42,56,456 |
Infosys BPO Limited (including subsidiaries) |
2,19,11,233 |
72,47,135 |
Infosys Consulting, Inc. |
4,32,455 |
– |
The details of the related party transactions entered into by the Company for the year ended December 31, 2010 and December 31, 2009 are as follows :
in
Particulars |
Year ended December 31, |
|
2010 |
2009 |
|
Capital transactions : |
||
Financing transactions |
||
Infosys Technologies Limited |
40,57,06,059 |
20,22,75,983 |
Loans / Advances |
||
Infosys Technologies Limited |
(24,15,93,963) |
– |
Revenue transactions : |
||
Purchase of services |
||
Infosys Technologies Limited |
6,35,16,507 |
7,55,21,523 |
Interest expenses |
||
Infosys Technologies Limited |
2,62,98,228 |
2,90,48,963 |
Sale of services |
||
Infosys Technologies Limited |
229,07,26,769 |
116,82,12,804 |
Maximum balances of loans and advances |
||
Infosys Technologies Limited |
47,33,08,117 |
47,33,08,117 |
15.2.6 Cash and bank balances
The details of balances as on Balance Sheet dates with non-scheduled banks are as follows :
in
Balances with non-scheduled banks |
As at December 31, |
|
2010 |
2009 |
|
In current accounts |
||
ABN Amro Bank, Shanghai, China |
45,63,20,522 |
38,69,26,323 |
Pudong Development Bank |
34,75,419 |
6,11,98,651 |
Hangzhou Merchant Bank |
82,57,054 |
1,01,22,005 |
In deposit accounts |
||
ABN Amro Bank, Shanghai, China |
23,80,00,000 |
– |
70,60,52,995 |
45,82,46,979 |
The details of maximum balances during the period with non-scheduled banks are as follows :
in
Maximum balance with non-scheduled banks during the period |
Year ended December 31, |
|
2010 |
2009 |
|
In current accounts |
||
Pudong Development Bank |
5,92,27,389 |
6,14,36,334 |
Hangzhou Merchant Bank |
3,30,16,807 |
2,41,40,628 |
15.2.7 Fixed assets
Depreciation charged to the Profit and Loss account includes a charge relating to assets costing less than 5,000/- each and other low value assets.
in
Year ended December 31, |
||
2010 |
2009 |
|
Depreciation charged during the year |
24,25,381 |
11,79,556 |