EX-99.12 49 exv99w12.htm exv99w12
EXHIBIT 99.12
Indian GAAP Consol
AUDITORS' REPORT TO THE BOARD OF DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS OF INFOSYS TECHNOLOGIES LIMITED AND SUBSIDIARIES

We have audited the attached consolidated balance sheet of Infosys Technologies Limited (the Company) and subsidiaries (collectively called the 'the Infosys Group') as at 30 September 2006, the consolidated profit and loss account for the quarter and half year ended on that date and the consolidated cash flow statement for the half year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We report that the consolidated financial statements have been prepared by the Company's management in accordance with the requirements of Accounting Standard (AS) 21, Consolidated Financial Statements issued by the Institute of Chartered Accountants of India.

In our opinion and to the best of our information and according to the explanations given to us, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:

(a)   in the case of the consolidated balance sheet, of the state of affairs of the Infosys Group as at 30 September 2006;

(b)   in the case of the consolidated profit and loss account, of the profit of the Infosys Group for the quarter and half year ended on that date; and

(c)   in the case of the consolidated cash flow statement, of the cash flows of the Infosys Group for the half year ended on that date.

for BSR & Co.
Chartered Accountants

Natrajan Ramkrishna
Partner
Membership No. 32815

Bangalore
11 October 2006

CONSOLIDATED FINANCIAL STATEMENTS OF INFOSYS TECHNOLOGIES LIMITED AND SUBSIDIARIES

in Rs. crore

Consolidated Balance Sheet as at

Schedule

September 30, 2006

March 31, 2006

SOURCES OF FUNDS

 

 

 

SHAREHOLDERS' FUNDS

 

 

 

   Share capital

1

278

138

   Reserves and surplus

2

8,321

6,828

 

 

8,599

6,966

MINORITY INTEREST

 

10

68

 

 

8,609

7,034

APPLICATION OF FUNDS

 

 

 

FIXED ASSETS

3

 

 

   Original cost

 

4,004

2,983

   Less: Accumulated depreciation and amortization

 

1,555

1,328

   Net book value

 

2,449

1,655

   Add: Capital work-in-progress

 

483

571

 

 

2,932

2,226

INVESTMENTS

4

2,819

755

DEFERRED TAX ASSETS

5

79

65

CURRENT ASSETS, LOANS AND ADVANCES

 

 

 

   Sundry debtors

6

2,085

1,608

   Cash and bank balances

7

982

3,429

   Loans and advances

8

1,514

1,297

 

 

4,581

6,334

LESS: CURRENT LIABILITIES AND PROVISIONS

 

 

 

   Current liabilities

9

1,177

934

   Provisions

10

625

1,412

NET CURRENT ASSETS

 

2,779

3,988

 

 

8,609

7,034

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

22

 

 

The schedules referred to above are an integral part of the consolidated balance sheet.

As per our report attached

for BSR & Co.
Chartered Accountants

Natrajan Ramkrishna N. R. Narayana Murthy Nandan M. Nilekani S. Gopalakrishnan Deepak M. Satwalekar
Partner Chairman Chief Executive Officer President, Director
Membership No. 32815 and Chief Mentor and Managing Director Chief Operating Officer and  
      Joint Managing Director  
 
  Marti G. Subrahmanyam Omkar Goswami Rama Bijapurkar Claude Smadja
  Director Director Director Director
         
  Sridar A. Iyengar David L Boyles Jeffrey Lehman S. D. Shibulal
  Director Director Director Director
 
  K. Dinesh T. V. Mohandas Pai Srinath Batni V. Balakrishnan
  Director Director Director Chief Financial Officer
 
Bangalore Parvatheesam K.      
October 11, 2006 Company Secretary      


 in Rs. crore, except per share data

Consolidated Profit and Loss Account for the

Schedule

Quarter ended

Half-year ended

 

 

September 30,

September 30,

 

 

2006

2005

2006

2005

 

 

 

 

 

 

Income from software services, products and business process management

 

3,451

2,294

6,466

4,366

Software development and business process management expenses

11

1,833

1,212

3,499

2,316

GROSS PROFIT

 

1,618

1,082

2,967

2,050

Selling and marketing expenses

12

221

149

425

291

General and administration expenses

13

288

199

544

361

 

 

509

348

969

652

OPERATING PROFIT BEFORE INTEREST, DEPRECIATION AND MINORITY INTEREST

 

1,109

734

1,998

1,398

Interest

 

-

-

-

-

Depreciation

 

122

96

228

176

OPERATING PROFIT BEFORE TAX MINORITY INTEREST AND EXCEPTIONAL ITEMS

 

987

638

1,770

1,222

Other income, net

14

66

44

194

72

Provision for investments

 

-

1

3

1

NET PROFIT BEFORE TAX, MINORITY INTEREST AND EXCEPTIONAL ITEMS

 

1,053

681

1,961

1,293

Provision for taxation on the above

15

123

69

229

150

NET PROFIT AFTER TAX AND BEFORE MINORITY INTEREST AND EXCEPTIONAL ITEMS

 

930

612

1,732

1,143

Income on sale of investments, net of taxes (refer to note 22.2.19)

 

-

-

6

-

NET PROFIT AFTER TAX, EXCEPTIONAL ITEMS AND BEFORE MINORITY INTEREST

 

930

612

1,738

1,143

Minority interest

 

1

6

9

6

NET PROFIT AFTER TAX, EXCEPTIONAL ITEMS AND MINORITY INTEREST

 

929

606

1,729

1,137

 

 

 

 

 

 

Balance Brought Forward

 

3,014

1,946

2,219

1,415

Less: Residual dividend paid

 

-

-

4

-

   Additional dividend tax

 

-

-

1

-

 

 

3,014

1,946

2,214

1,415

AMOUNT AVAILABLE FOR APPROPRIATION

 

3,943

2,552

3,943

2,552

Dividend

 

 

 

 

 

   Interim

 

278

177

278

177

   Final

 

-

-

-

-

   Total dividend

 

278

177

278

177

   Dividend tax

 

39

25

39

25

Balance in profit and loss account

 

3,626

2,350

3,626

2,350

 

 

3,943

2,552

3,943

2,552

EARNINGS PER SHARE *

 

 

 

 

 

   Equity shares of par value Rs. 5/- each

 

 

 

 

 

   Before Exceptional items

 

 

 

 

 

      Basic

 

16.75

11.13

31.11

20.94

      Diluted

 

16.37

10.82

30.39

20.35

   After Exceptional items

 

 

 

 

 

      Basic

 

16.75

11.13

31.23

20.94

      Diluted

 

16.37

10.82

30.50

20.35

Number of shares used in computing earnings per share

 

 

 

 

 

   Basic

 

55,47,72,296

54,42,02,438

55,37,98,511

54,30,96,662

   Diluted

 

56,77,46,039

56,00,61,300

56,69,42,396

55,88,90,590

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

22

 

 

 

 

* Refer to note 22.2.18

The schedules referred to above form an integral part of the consolidated profit and loss account.

As per our report attached

for BSR & Co.
Chartered Accountants

Natrajan Ramkrishna N. R. Narayana Murthy Nandan M. Nilekani S. Gopalakrishnan Deepak M. Satwalekar
Partner Chairman Chief Executive Officer President, Director
Membership No. 32815 and Chief Mentor and Managing Director Chief Operating Officer and  
      Joint Managing Director  
 
  Marti G. Subrahmanyam Omkar Goswami Rama Bijapurkar Claude Smadja
  Director Director Director Director
         
  Sridar A. Iyengar David L Boyles Jeffrey Lehman S. D. Shibulal
  Director Director Director Director
 
  K. Dinesh T. V. Mohandas Pai Srinath Batni V. Balakrishnan
  Director Director Director Chief Financial Officer
 
Bangalore Parvatheesam K.      
October 11, 2006 Company Secretary      


in Rs. crore

Consolidated Cash Flow Statement for the

Schedule

Half-year ended

 

 

September 30,

 

 

2006

2005

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net profit before tax, minority interest and exceptional items

 

1,961

1,293

Adjustments to reconcile net profit before tax to cash provided by operating activities

 

 

 

    (Profit)/ loss on sale of fixed assets

 

-

-

    Depreciation

 

228

176

    Interest and dividend income

 

(124)

(81)

    Profit on sale of liquid mutual funds

 

(6)

-

    Provisions for investments

 

3

1

    Effect of exchange differences on translation of foreign currency cash and cash equivalents

 

(34)

(12)

Changes in current assets and liabilities

 

 

 

    Sundry debtors

 

(477)

(12)

    Loans and advances

16

(205)

(81)

    Current liabilities and provisions

17

251

87

    Income taxes paid

18

(170)

(164)

NET CASH GENERATED BY OPERATING ACTIVITIES

 

1,427

1,207

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

    Purchases of fixed assets and change in capital work-in-progress

19

(523)

(555)

    Proceeds on disposal of fixed assets

 

-

-

    Investments in securities

20

(2,060)

(1,119)

    Acquisition of minority interest in Subsidiary

 

(530)

-

    Interest and dividend income

 

124

81

    Cash flow from investing activities before exceptional items

 

(2,989)

(1,593)

    Proceeds on sale of long term Investments (net of taxes)

 

6

-

NET CASH USED IN INVESTING ACTIVITIES

 

(2,983)

(1,593)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

    Proceeds from issuance of share capital on exercise of stock options

 

289

249

    Dividends paid during the period, including dividend tax

 

(1,215)

(201)

NET CASH USED IN FINANCING ACTIVITIES

 

(926)

48

Effect of exchange differences on translation of foreign currency cash and cash equivalents

 

34

14

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

 

(2,448)

(324)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

 

3,956

1,790

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

21

1,508

1,466

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

22

 

 

The schedules referred to above are an integral part of the consolidated cash flow statement.

As per our report attached

for BSR & Co.
Chartered Accountants

Natrajan Ramkrishna N. R. Narayana Murthy Nandan M. Nilekani S. Gopalakrishnan Deepak M. Satwalekar
Partner Chairman Chief Executive Officer President, Director
Membership No. 32815 and Chief Mentor and Managing Director Chief Operating Officer and  
      Joint Managing Director  
 
  Marti G. Subrahmanyam Omkar Goswami Rama Bijapurkar Claude Smadja
  Director Director Director Director
         
  Sridar A. Iyengar David L Boyles Jeffrey Lehman S. D. Shibulal
  Director Director Director Director
 
  K. Dinesh T. V. Mohandas Pai Srinath Batni V. Balakrishnan
  Director Director Director Chief Financial Officer
 
Bangalore Parvatheesam K.      
October 11, 2006 Company Secretary      


in Rs. crore, except per share data

Schedules to the Consolidated Balance Sheet as at

September 30, 2006

March 31, 2006

 

 

 

 

1

SHARE CAPITAL

 

 

 

Authorized

 

 

 

Equity shares, Rs. 5/- par value

 

 

 

60,00,00,000 (30,00,00,000) equity shares

300

150

 

Issued, Subscribed and Paid Up

 

 

 

Equity shares, Rs. 5/- par value*

278

138

 

55,57,85,001 ( 27,55,54,980) equity shares fully paid up

 

 

 

[Of the above, 53,53,35,478 ( 25,84,92,302) equity shares, fully paid up have been issued as bonus shares by capitalization of the general reserve]
 
 

 

 

278

138

 

Forfeited shares amounted to Rs. 1,500/- (Rs 1,500/-)

 

 

 

* For details of options in respect of equity shares, refer to note 22.2.7

 

 

 

* Refer to note 22.2.18 for details of basic and diluted shares

 

 

2

RESERVES AND SURPLUS

 

 

 

Capital reserve

5

5

 

Capital reserve on consolidation

-

49

 

Share premium account - As at April 1,

1,543

900

 

Add: Receipts on exercise of employee stock options

286

571

 

Income Tax benefit arising from exercise of stock options

-

72

 

 

1,829

1,543

 

General reserve - As at April 1,

3,012

2,770

 

Less: Capitalized on issue of bonus shares

138

-

 

Gratuity transitional liability (refer to note 22.2.20)

13

-

 

Add: Transfer from the Profit and Loss Account

-

242

 

 

2,861

3,012

 

Balance in Profit and Loss Account

3,626

2,219

 

 

8,321

6,828

3

FIXED ASSETS

 

Particulars

Original cost

Depreciation and amortization

Net book value

 

 

As at
April 1,
2006

Additions

Deletions/ Retirement

As at 
September 30,  2006 

As at
April 1,
2006

For the period

Deletions/ Retirement

As at  
September 30,  2006 

As at
September 30, 2006

As at
March 31,
2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

41

411

-

452 

-

-

-

- 

452

41

 

Land: free-hold

34

4

-

38 

-

-

-

- 

38

34

 

leasehold

104

16

4

116 

-

-

-

- 

116

104

 

Buildings

1,022

276

-

1,298 

180

38

-

218 

1,080

842

 

Plant and machinery

569

112

-

681 

309

49

-

358 

323

260

 

Computer equipment

757

139

1

895 

552

103

1

654 

241

205

 

Furniture and fixtures

443

64

-

507 

283

33

-

316 

191

160

 

Leasehold improvements

11

3

-

14 

4

4

-

8 

6

7

 

Vehicles

2

1

-

3 

-

1

-

1 

2

2

 

 

2,983

1,026

5

4,004 

1,328

228

1

1,555 

2,449

1,655

 

Previous Period

2,287

475

5

2,757 

1,031

176

5

1,202 

1,555

1,256

 

Previous year

2,287

841

145

2,983 

1,031

437

140

1,328 

1,655

 

 

 

Note: Buildings include Rs. 250/- being the value of 5 shares of Rs. 50/- each in Mittal Towers Premises Co-operative Society Limited



 

    
in Rs. crore

 

  

September 30, 2006

March 31, 2006

4

INVESTMENTS

 

 

 

Trade (unquoted) - at cost

 

 

 

   Long- term investments

12

17

 

   Less: Provision made for investments

12

15

 

 

-

2

 

Non-trade (unquoted), current investments, at the lower of cost and fair value

 

 

 

   Liquid mutual funds

2,819

753

 

 

2,819

755

 

Aggregate amount of unquoted investments

2,819

755

5

DEFERRED TAX ASSETS

 

 

 

Fixed assets

69

57

 

Sundry debtors

3

2

 

Leave provisions and others

7

6

 

 

79

65

6

SUNDRY DEBTORS

 

 

 

Debts outstanding for a period exceeding six months

 

 

 

   Unsecured

 

 

 

      considered good

-

-

 

      considered doubtful

22

8

 

Other debts

 

 

 

   Unsecured

 

 

 

      considered good*

2,085

1,608

 

      considered doubtful

1

2

 

 

2,108

1,618

 

Less: Provision for doubtful debts

23

10

 

 

2,085

1,608

 

* Includes dues from companies where directors are interested

3

2

 

 

 

 

7

CASH AND BANK BALANCES

 

 

 

Cash on hand

-

-

 

Balances with scheduled banks

 

 

 

   In current accounts *

265

224

 

   In deposit accounts in Indian Rupees

405

2,800

 

Balances with non-scheduled banks

 

 

 

   In deposit accounts in foreign currency

-

-

 

   In current accounts in foreign currency

312

405

 

 

982

3,429

 

 *Includes balance in unclaimed dividend account

3

3

 

 

 

 

8

LOANS AND ADVANCES

 

 

 

Unsecured, considered good

 

 

 

Advances

1

1

 

   prepaid expenses

34

32

 

   for supply of goods and rendering of services

18

10

 

   advance to gratuity trust

8

-

 

   others

22

14

 

 

83

57

 

Unbilled revenues

338

211

 

Advance income tax

293

267

 

Loans and advances to employees

 

 

 

   housing and other loans

43

49

 

   salary advances

64

63

 

Electricity and other deposits

18

16

 

Rental deposits

17

16

 

Deposits with financial institution and body corporate (refer note 22.2.9)

647

607

 

Deposits with government authorities

-

-

 

Mark to Market forward contract & option - asset

4

-

 

Other assets

7

11

 

 

1,514

1,297

 

Unsecured, considered doubtful

 

 

 

   Loans and advances to employees

1

1

 

 

1,515

1,298

 

Less: Provision for doubtful loans and advances to employees

1

1

 

 

1,514

1,297

9

CURRENT LIABILITIES

 

 

 

Sundry creditors

 

 

 

   capital goods

-

-

 

   goods and services

17

12

 

   accrued salaries and benefits

 

 

 

      salaries

24

9

 

      bonus and incentives

214

260

 

      unavailed leave

120

101

 

      long service leave provision

2

-

 

   for other liabilities

 

 

 

      accrual for expenses

304

218

 

      retention monies

12

13

 

      withholding and other taxes payable

135

89

 

   for purchase of intellectual property rights

20

20

 

   others

11

3

 

 

859

725

 

Advances received from clients

8

7

 

Unearned revenue

307

194

 

Unclaimed dividend

3

3

 

Mark to Market on options/due on forward contracts

-

5

 

 

1,177

934

10

PROVISIONS

 

 

 

Proposed dividend

278

1,061

 

Provision for

 

 

 

   tax on dividend

39

149

 

   income taxes*

289

190

 

   post-sales client support and warranties

19

12

 

 

625

1,412

 

* Refer to note 22.2.8

 

 

 

 

 

 


in Rs. crore

Schedules to Consolidated Profit and Loss Account for the

Quarter ended

Half-year ended

 

 

September 30,

September 30,

2006

2005

2006

2005

11

SOFTWARE DEVELOPMENT AND BUSINESS PROCESS MANAGEMENT EXPENSES

 

 

 

 

 

Salaries and bonus including overseas staff expenses

1,506

978

2,844

1,858

 

Contribution to provident and other funds

41

22

73

43

 

Staff welfare

11

7

20

13

 

Overseas travel expenses

99

99

235

180

 

Technical sub-contractors

69

35

126

71

 

Software packages

 

 

 

 

 

   for own use

52

34

87

67

 

   for service delivery to clients

1

8

15

19

 

Communication expenses

18

16

35

32

 

Rent

8

6

16

12

 

Computer maintenance

6

4

11

8

 

Consumables

7

4

11

8

 

Provision for post-sales client support and warranties

4

(7)

6

(6)

 

Miscellaneous expenses

11

6

20

11

 

 

1,833

1,212

3,499

2,316

12

SELLING AND MARKETING EXPENSES

 

 

 

 

 

Salaries and bonus including overseas staff expenses

139

88

275

174

 

Contribution to provident and other funds

1

-

2

1

 

Staff welfare

1

-

1

-

 

Overseas travel expenses

24

18

50

38

 

Traveling and conveyance

2

1

5

2

 

Brand building

15

12

27

22

 

Commission and earnout charges

19

8

27

18

 

Professional charges

7

11

12

15

 

Rent

4

4

9

8

 

Marketing expenses

5

3

8

6

 

Telephone charges

1

1

3

3

 

Printing and stationery

-

1

-

1

 

Advertisements

1

1

2

1

 

Sales promotion expenses

1

-

1

1

 

Office maintenance

-

-

1

-

 

Communication Expenses

-

-

-

-

 

Insurance charges

-

-

-

-

 

Consumables

-

-

-

-

 

Software packages

 

 

 

 

 

   for own use

-

-

-

-

 

Computer maintenance

-

-

-

-

 

Rates and taxes

-

-

-

-

 

Miscellaneous expenses

1

1

2

1

 

 

221

149

425

291

13

GENERAL AND ADMINISTRATION EXPENSES

 

 

 

 

 

Salaries and bonus including overseas staff expenses

67

39

129

79

 

Contribution to provident and other funds

3

2

6

4

 

Staff welfare

-

-

-

-

 

Telephone charges

31

24

59

41

 

Professional charges

40

26

71

43

 

Power and fuel

25

17

48

32

 

Office maintenance

27

18

52

33

 

Traveling and conveyance

23

16

45

31

 

Overseas travel expenses

7

4

12

11

 

Insurance charges

8

6

15

13

 

Printing and stationery

4

2

7

5

 

Rates and taxes

3

3

12

6

 

Donations

5

5

9

8

 

Rent

5

3

10

6

 

Advertisements

3

4

4

7

 

Professional membership and seminar participation fees

3

2

5

5

 

Repairs to building

7

5

10

8

 

Repairs to plant and machinery

3

3

6

4

 

Postage and courier

2

1

5

3

 

Books and periodicals

2

1

2

2

 

Recruitment and training

3

3

5

4

 

Provision for bad and doubtful debts

10

9

20

9

 

Provision for doubtful loans and advances

-

-

-

-

 

Commission to non-whole time directors

1

1

1

1

 

Auditor's remuneration

 

 

 

 

 

   statutory audit fees

-

-

1

1

 

   certification charges

-

-

-

-

 

   others

-

-

-

-

 

   out-of-pocket expenses

-

-

-

-

 

Bank charges and commission

1

1

1

1

 

Freight charges

-

1

-

-

 

Research grants

3

-

5

-

 

Software packages

 

 

 

-

 

   for own use

-

-

-

-

 

Miscellaneous expenses

2

3

4

4

 

 

288

199

544

361

14

OTHER INCOME, NET

 

 

 

 

 

Interest received on deposits with banks and others*

23

24

75

49

 

Dividend received on investment in liquid mutual funds (non-trade unquoted)

31

18

49

32

 

Miscellaneous income, net (Refer to note 22.2.10)

1

2

7

2

 

Exchange differences

11

-

63

(11)

 

 

66

44

194

72

 

*Tax deducted at source

5

5

19

10

 

 

 

 

 

 

15

PROVISION FOR TAXATION

 

 

 

 

 

Income taxes*

128

72

242

157

 

Deferred taxes

(5)

(3)

(13)

(7)

 

 

123

69

229

150

 

* Refer to note 22.2.8

 

 

 

 



in Rs. crore

Schedules to Consolidated Cashflow Statements for the

Half-year ended

 

 

September 30,

  

2006

2005

16

CHANGE IN LOANS AND ADVANCES

 

 

 

As per the Balance Sheet

1,514

1,050

 

Add: Gratuity transitional liability (Refer to note 22.2.20)

13

-

 

Less: Deposits with financial institutions,

 

 

 

      included in cash and cash equivalents

(526)

(70)

 

      Advance income taxes separately considered

(293)

(493)

 

 

708

487

 

Less: Opening balance considered

(503)

(406)

 

 

205

81

17

CHANGE IN CURRENT LIABILITIES AND PROVISIONS

 

 

 

As per the Balance Sheet

1,802

1,603

 

Add/ (Less): Provisions separately considered in the cash flow Statement

 

 

 

      Income taxes

(289)

(628)

 

      Dividends

(278)

(177)

 

      Dividend tax

(39)

(25)

 

 

1,196

773

 

Less: Opening balance considered

(945)

(686)

 

 

251

87

18

INCOME TAXES PAID

 

 

 

Charge as per the Profit and Loss Account

229

150

 

Add: Increase/ decrease in advance income taxes

26

89

 

      Increase / decrease in deferred taxes

14

7

 

Less: Increase in income tax provision

(99)

(82)

 

 

170

164

19

PURCHASE OF FIXED ASSETS AND CHANGE IN CAPITAL WORK-IN-PROGRESS

 

 

 

As per Balance Sheet*

611

475

 

Less: Opening Capital work-in-progress

(571)

(318)

 

Add: Closing Capital work-in-progress

483

398

 

 

523

555

 

* Excludes Rs 4 crore towards movement of land from Leasehold to Freehold

 

 

 

* Excludes goodwill on buyback of Infosys BPO Ltd shares

 

 

20

INVESTMENTS IN / (DISPOSAL OF) SECURITIES *

 

 

 

As per the Balance Sheet

2,819

2,329

 

Add: Provisions made on investments

3

1

 

 

2,822

2,330

 

      Less: Profit on sale of liquid mutual funds

(6)

-

 

Opening balance considered

(756)

(1,211)

 

 

2,060

1,119

 

* Refer to note 22.2.11 for details of investments and redemptions

 

 

21

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

 

 

 

As per the Balance Sheet

982

1,396

 

Add: Deposits with financial institutions, included herein

526

70

 

 

1,508

1,466

 

CONSOLIDATED FINANCIAL STATEMENTS OF INFOSYS TECHNOLOGIES LIMITED AND SUBSIDIARIES

Schedules to the Consolidated Financial Statements for the quarter and half year ended September 30, 2006

22. Significant accounting policies and notes on accounts

Company overview
Infosys Technologies Limited ("Infosys" or "the company") along with its majority owned and controlled subsidiary, Infosys BPO Limited, India ("Infosys BPO") formerly known as Progeon Limited and,wholly owned subsidiaries, Infosys Technologies (Australia) Pty. Limited ("Infosys Australia"), Infosys Technologies (China) Co. Limited ("Infosys China") formerly known as Infosys Technologies (Shanghai) Co. Limited and Infosys Consulting, Inc., USA ("Infosys Consulting") is a leading global technology services organisation. The group of companies ("the Group") provide end-to-end business solutions that leverage technology thereby enabling its clients to enhance business performance. The Group's operations are to provide solutions that span the entire software life cycle encompassing technical consulting, design, development, re-engineering, maintenance, systems integration and package evaluation and implementation. In addition, the Group offers software products for the banking industry, business consulting and business process management services.

22. 1 Significant accounting policies

22.1.1 Basis of preparation of financial statements
The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accruals basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and guidelines issued by the Securities and Exchange Board of India. The interim financial statements are prepared to conform to the accounting standard on "Interim Financial Reporting". Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Management evaluates all recently issued or revised accounting standards on an on-going basis.

The financial statements are prepared in accordance with the principles and procedures required for the preparation and presentation of consolidated financial statements as laid down under the accounting standard on Consolidated Financial Statements issued by the ICAI. The financial statements of Infosys -- the parent company, Infosys BPO, Infosys China, Infosys Australia and Infosys Consulting have been combined on a line-by-line basis by adding together book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances and transactions and resulting unrealized gain/loss. The consolidated financial statements are prepared by applying uniform accounting policies in use at the Group. Minority interests have been excluded. Minority interests represent that part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the company.

Goodwill has been recorded to the extent the cost of acquisition, comprising purchase consideration and transaction costs, exceeds the fair value of the net assets in the acquired company and will be tested for impairment on an annual basis. Exchange difference resulting from the difference due to translation of foreign currency assets and liabilities in subsidiaries is disclosed as foreign currency translation adjustment.

22.1.2 Use of estimates
The preparation of the financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.

Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated.Where no reliable estimate can be made, a disclosure is made as contingent liability. Actual results could differ from those estimates.

22.1.3 Revenue recognition
Revenue from software development on fixed-price, fixed-time frame contracts, where there is no uncertainty as to measurement or collectability of consideration is recognized as per the percentage of completion method. On time-and-materials contracts, revenue is recognized as the related services are rendered. Cost and earnings in excess of billings are classified as unbilled revenue while billing in excess of cost and earnings is classified as unearned revenue. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current estimates. Annual Technical Services revenue and revenue from fixed-price maintenance contracts are recognized proportionately over the period in which services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license, except in multiple element contracts, where revenue is recognized as per the percentage of completion method.

Profit on sale of investments is recorded on transfer of title from the company and is determined as the difference between the sales price and the then carrying value of the investment. Interest is recognized using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognized when the company's right to receive dividend is established.

22.1.4 Expenditure
The cost of software purchased for use in software development and services is charged to cost of revenues in the year of acquisition. Charges relating to non-cancelable, long-term operating leases are computed primarily on the basis of the lease rentals, payable as per the relevant lease agreements. Post-sales customer support costs are estimated by management, determined on the basis of past experience. The costs provided for are carried until expiry of the related warranty period. Provisions are made for all known losses and liabilities. Leave encashment liability is determined on the basis of an actuarial valuation.

22.1.5 Fixed assets, intangible assets and capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation. Direct costs are capitalized until fixed assets are ready for use. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.

22.1.6 Depreciation and amortization
Depreciation on fixed assets is applied on the straight-line method based on useful lives of assets as estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged. Individual low cost assets (acquired for less than Rs. 5,000/-) are depreciated within a year of acquisition. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the company for its use. Leasehold improvements are written off over the lower of the remaining primary period of lease or the life of the asset. Management estimates the useful lives for the other fixed assets as follows:

Buildings

15 years

Plant and machinery

5 years

Computer equipment

2-5 years

Furniture and fixtures

5 years

Vehicles

5 years

22.1.7 Retirement benefits to employees

22.1.7.a Gratuity
Infosys provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees at the company and Infosys BPO. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as at the balance sheet date and as per gratuity regulations for Infosys and Infosys BPO respectively. Infosys fully contributes all ascertained liabilities to the Infosys Technologies Limited Employees' Gratuity Fund Trust (the "Trust"). Infosys BPO fully contributes all ascertained liabilities to the Infosys BPO Employees' Gratuity Fund Trust. Trustees administer contributions made to the Trust and contributions are invested in specific investments, as permitted by law.

22.1.7.b Superannuation
Certain employees of Infosys are also participants in a defined contribution plan. Until March 2005, the company made contributions under the superannuation plan (the Plan) to the Infosys Technologies Limited Employees' Superannuation Fund Trust. The company had no further obligations to the Plan beyond its monthly contributions. Certain employees of Infosys BPO were also eligible for superannuation benefit. Infosys BPO made monthly provisions under the superannuation plan based on a specified percentage of each covered employee's salary. Infosys BPO had no further obligations to the superannuation plan beyond its monthly provisions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India. From April 1 2005, a portion of the monthly contribution amount was paid directly to the employees as an allowance and the balance amount was contributed to the trust.

22.1.7.c Provident fund
Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The company contributes a part of the contributions to the Infosys Technologies Limited Employees' Provident Fund Trust. The remaining contributions are made to government administered provident fund. The interest rate payable by the trust to the beneficiaries every year is being administered by the government. The company has an obligation to make good the short fall, if any, between the return from its investments and the administered interest rate.

In respect of Infosys BPO, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and Infosys BPO make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. Infosys BPO has no further obligations under the provident fund plan beyond its monthly contributions.

22.1.8 Research and development
Revenue expenditure incurred on research and development is expensed as incurred. Capital expenditure incurred on research and development is depreciated over the estimated useful lives of the related assets.

22.1.9 Foreign currency transactions
Revenue from overseas clients and collections deposited in foreign currency bank accounts are recorded at the exchange rate as of the date of the respective transactions. Expenditure in foreign currency is accounted at the exchange rate prevalent when such expenditure is incurred. Disbursements made out of foreign currency bank accounts are reported at the daily rates. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred is converted into Indian Rupees. The exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.

Fixed assets purchased at overseas offices are recorded at cost, based on the exchange rate as of the date of purchase. The charge for depreciation is determined as per the Group's accounting policy.

Monetary current assets and monetary current liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the balance sheet. The resulting difference is also recorded in the profit and loss account.

22.1.10 Forward contracts in foreign currencies
The company uses foreign exchange forward contracts and options to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward contracts and options reduces the risk or cost to the company and the company does not use the foreign exchange forward contracts or options for trading or speculation purposes.

The company records the gain or loss on effective hedges in the foreign currency fluctuation reserve until the transactions are complete. On completion, the gain or loss is transferred to the profit and loss account of that period. To designate a forward contract and option as an effective hedge, management objectively evaluates and evidences with appropriate supporting documents at the inception of each contract whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. In the absence of a designation as effective hedge, a gain or loss is recognized in the profit and loss account.

22.1.11 Income tax
Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

The differences that result between the profit offered for income taxes and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year for each of the consolidated entities. Tax benefits of deductions earned on exercise of employee stock options in excess of compensation charged to profit and loss account are credited to the share premium account.

22.1.12 Earnings per share
In determining earnings per share, the Group considers the net profit after tax and includes the post-tax effect of any extra-ordinary/exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. the average market value of the outstanding shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock splits and bonus shares issues effected prior to the approval of the financial statements by the Board of Directors.

22.1.13 Investments
Trade investments are the investments made to enhance the Group's business interests. Investments are either classified as current or long-term based on Management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment. Long-term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

22.1.14 Cash flow statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Group are segregated.

22.2 Notes on accounts
Amounts in the 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 22.3. All exact amounts are stated with the suffix "/-". One crore equals 10 million.

The previous period/ year figures have been regrouped / reclassified, wherever necessary to conform to the current period's presentation.

The previous period/ year figures have been regrouped / reclassified, wherever necessary to conform to the current period's presentation.

22.2.1 Aggregate expenses
The aggregate amounts incurred on certain specific expenses:

in Rs. Crore

 

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Salaries and bonus including overseas staff expenses

1,712

1,105

3,248

2,111

Contribution to provident and other funds

45

24

81

48

Staff welfare

12

7

21

13

Overseas travel expenses

130

121

297

229

Traveling and conveyance

25

17

50

33

Technical sub-contractors

69

35

126

71

Software packages

 

-

 

-

for own use

52

34

87

67

for service delivery to clients

1

8

15

19

Professional charges

47

37

83

58

Telephone charges

32

25

62

44

Communication expenses

18

16

35

32

Power and fuel

25

17

48

32

Office maintenance

27

18

53

33

Rent

17

13

35

26

Brand building

15

12

27

22

Commission and earnout charges

19

8

27

18

Insurance charges

8

6

15

13

Printing and stationery

4

3

7

6

Computer maintenance

6

4

11

8

Consumables

7

4

11

8

Rates and taxes

3

3

12

6

Advertisements

4

5

6

8

Donations

5

5

9

8

Marketing expenses

5

3

8

6

Professional membership and seminar participation fees

3

2

5

5

Repairs to building

7

5

10

8

Repairs to plant and machinery

3

3

6

4

Postage and courier

2

1

5

3

Provision for post-sales client support and warranties

4

(7)

6

(6)

Books and periodicals

2

1

2

2

Recruitment and training

3

3

5

4

Provision for bad and doubtful debts

10

9

20

9

Provision for doubtful loans and advances

-

-

-

-

Commission to non-whole time directors

1

1

1

1

Sales promotion expenses

1

-

1

1

Auditor's remuneration

 

-

 

-

statutory audit fees

-

-

1

1

certification charges

-

-

-

-

others

-

-

-

-

out-of-pocket expenses

-

-

-

-

Bank charges and commission

1

1

1

1

Freight charges

-

1

-

-

Research grants

3

-

5

-

Miscellaneous expenses

14

10

26

16

 

2,342

1,560

4,468

2,968

Fringe Benefit Tax (FBT) in India included in the above

4

4

9

7


22.2.2. Capital commitments and contingent liabilities

in Rs. Crore

Particulars

As at

 

September 30, 2006

March 31, 2006

Estimated amount of unexecuted capital contracts

 

 

(net of advances and deposits)

532

519

Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favour of various government authorities and others

31

26

Claims against the company, not acknowledged as debts

 

 

(Net of Amount paid to statutory authorities of Rs. 138 crore (Rs. 138 crore) *

19

14

Forward contracts outstanding

 

 

In US $

US$ 98,000,000

US$ 119,000,000

(Equivalent approximate in Rs. crore)

450.00

529

In GBP

GBP 500,000.00

GBP 0.00

(Equivalent approximate in Rs. crore)

4

-

Options contracts outstanding

 

 

Common Strike Ratio Option

-

US$ 8,000,000

(Equivalent approximate in Rs. crore)

-

36

Range barrier options in US $

US$ 240,000,000

US$ 210,000,000

(Equivalent approximate in Rs. crore)

1,103

934

Range barrier options in Euro

Euro 10,000,000

Euro 3,000,000.00

(Equivalent approximate in Rs. crore)

58

16

Range barrier options in GBP

GBP 11,250,000

GBP 3,000,000.00

(Equivalent approximate in Rs. crore)

97

23


* Claims against the Company not acknowledged as debts include demands from Indian tax authorities for payment of additional tax of Rs.135 crore (135 crore), including interest of Rs 33 crore (Rs 33 crore), upon completion of their tax review for fiscal 2002 and 2003. The tax demand is mainly on account of disallowance of a portion of the deduction claimed by the company under Section 10A of the Income-tax Act. The deductible amount is determined by the ratio of "Export Turnover" to "Total Turnover". The disallowance arose from certain expenses incurred in foreign currency being reduced from Export Turnover but not reduced from Total Turnover.

The company is contesting the demand and management, including its tax advisers, believes that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. Management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and results of operations.

The company received the order of the appellate authority, the Commissioner of Income Tax (Appeals), Bangalore for the demand pertaining to fiscal 2002 and fiscal 2003 in April 2006 and August 2006 respectively. The position of the company has been substantially upheld by the appellate authority.

22.2.3 Obligations on long-term, non-cancelable operating leases

The lease rentals charged during the quarter and half year ended September 30, 2006 and 2005 and maximum obligations on long-term non-cancelable operating leases payable as per the rentals stated in the respective agreements:-

in Rs. Crore

 

Quarter ended

Half-year ended

Particulars

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Lease rentals recognized during the period

17

13

35

26


in Rs. Crore

Lease obligations

As at

 

September 30, 2006

March 31, 2006

 

 

 

Within one year of the balance sheet date

44

32

Due in a period between one year and five years

121

114

Due after five years

57

61

 

222

207


The operating lease arrangements extend upto a maximum of ten years from their respective dates of inception and relates to rented overseas premises and car rentals. Some of these lease agreements have price escalation clause.

22.2.4 Related party transactions
During the quarter and half year ended September 30, 2006, an amount of Rs. 5 crore and Rs.9 crore (for the quarter and half year ended September 30, 2005 Rs. 4 crore and Rs. 7 crore) has been donated to Infosys Foundation, a not-for-profit foundation, in which certain directors of the company are trustees.

22.2.5 Transactions with key management personnel
Particulars of remuneration and other benefits paid to key management personnel during the quarter and half year ended September 30, 2006 and September 30, 2005 have been detailed in Schedule 22.3, since the amounts are less than a crore.

22.2.6 Research and development expenditure

in Rs. Crore

 

Quarter ended

Half-year ended

Particulars

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Capital

-

-

-

-

Revenue

41

25

72

51

 

41

25

72

51


22.2.7 Stock option plans
The company has two stock option plans that are currently operational.

1998 Stock Option Plan ("the 1998 Plan")
The 1998 Plan was approved by the Board of Directors in December 1997 and by the shareholders in January 1998, and is for issue of 1,17,60,000 ADSs representing 1,17,60,000 equity shares. The 1998 Plan automatically expires in January 2008, unless terminated earlier. All options under the 1998 Plan are exercisable for ADSs representing equity shares. A compensation committee comprising independent members of the Board of Directors administers the 1998 Plan. All options have been granted at 100% of fair market value.

 

Number of options granted, exercised and forfeited during the

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Options outstanding, beginning of period

42,49,610

59,08,936

45,46,480

61,08,580

Granted

-

-

-

-

Less: exercised

(495,021)

(376,496)

(675,571)

(547,460)

forfeited

(21,040)

(38,976)

(137,360)

(67,656)

Options outstanding, end of period

37,33,549

54,93,464

37,33,549

54,93,464


1999 Stock Option Plan ("the 1999 Plan")
In fiscal 2000, the company instituted the 1999 Plan. The shareholders and the Board of Directors approved the plan in June 1999, which provides for the issue of 5,28,00,000 equity shares to the employees. The compensation committee administers the 1999 Plan. Options will be issued to employees at an exercise price that is not less than the fair market value.

 

Number of options granted, exercised and forfeited during the

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Options outstanding, beginning of period

1,67,52,788

2,64,62,242

1,91,79,074

2,81,09,874

Granted

-

-

-

-

Less: exercised

(1,603,628)

(2,096,794)

(3,999,470)

(3,630,466)

forfeited

(22,821)

(117,072)

(53,265)

(231,032)

Options outstanding, end of period

1,51,26,339

2,42,48,376

1,51,26,339

2,42,48,376


The aggregate options considered for dilution are set out in note 22.2.18

Infosys BPO's 2002 Plan
Infosys BPO's 2002 Plan provides for the grant of stock options to employees of Infosys BPO and was approved by the Board of Directors and stockholders in June 2002. All options under the 2002 Plan are exercisable for equity shares. The 2002 Plan is administered by a Compensation Committee comprising three members, all of whom are directors of Infosys BPO. The 2002 Plan provides for the issue of 52,50,000 equity shares to employees, at an exercise price, which shall not be less than the Fair Market Value ("FMV") on the date of grant. Options may also be issued to employees at exercise prices that are less than FMV only if specifically approved by the members of the company in general meeting. The options issued under the 2002 Plan vest in periods ranging between one through six years, although accelerated vesting based on performance conditions is provided in certain instances.

The activity in Infosys BPO's 2002 Plan during the quarter and half year ended September 2006 and 2005 :-

 

Number of options granted, exercised and forfeited

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Options outstanding, beginning of period

28,70,230

37,62,775

24,52,330

31,16,518

Granted

-

1,05,000

5,93,300

8,08,300

Less: exercised

(91,929)

(358,762)

(234,029)

(365,512)

forfeited

(208,562)

(240,913)

(241,862)

(291,206)

Options outstanding, end of period

25,69,739

32,68,100

25,69,739

32,68,100

Proforma Accounting for Infosys BPO Stock Option Plan
Guidance note on "Accounting for employee share based payments" issued by Institute of Chartered Accountants of India establishes financial accounting and reporting principles for employee share based payment plans. The guidance note applies to employee share based payment plans, the grant date in respect of which falls on or after April 1, 2005.

As allowed by guidance note, Infosys BPO has elected to continue to apply the intrinsic value-based method of accounting described above, and has adopted the disclosure requirements of guidance note "Accounting of employee share based premiums". Had the compensation cost for Infosys BPO's stock-based compensation plan been determined in a manner consistent with the fair value approach described in guidance note, the Company's net Income and basic and diluted earnings per share as reported would have reduced to the proforma amounts as indicated:-

 

 

Quarter ended

Half-year ended

Particulars

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Net Profit:

 

 

 

 

As Reported

929

606

1,729

1,137

Less: Stock-based employee compensation expense

2

1

3

2

Adjusted Proforma

927

605

1,726

1,135

 

 

 

 

 

Basic Earnings per share as reported

16.75

11.13

31.11

20.94

Proforma Basic Earnings per share

16.37

11.11

30.39

20.87

Diluted Earnings per share as reported

16.75

10.82

31.23

20.35

Proforma Earnings per share as reported

16.37

10.80

30.50

20.27


The Fair value of each option is estimated on the date of grant using the Black-Scholes model with the following assumptions:

 

 

Quarter ended

Half-year ended

Particulars

September 30,

September 30,

 

2006*

2005

2006

2005

 

 

 

 

 

Dividend yield %

-

0.00%

0.00%

0.00%

Expected life

-

1-6 years

1-6 years

1-6 years

Risk free interest rate

-

7.06%

8.11%

6.90%-7.06%

Volatility

-

50.00%

50.00%

50.00%

* No grants were made during the quarter

22.2.8 Income taxes
The provision for taxation includes tax liabilities in India on the company's global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries.

Most of the company's and all of Infosys BPO's operations are conducted through Software Technology Parks ("STPs"). Income from STPs are tax exempt for the earlier of 10 years commencing from the fiscal year in which the unit commences software development, or March 31, 2009.

Infosys now also has operations in a Special Economic Zone. Income from SEZs are fully tax exempt for the first 5 years, 50% exempt for the next 5 years and 50% exempt for another 5 years subject to fulfilling certain conditions.

22.2.9 Loans and advances

in Rs. Crore

 

As at

Particulars

September 30, 2006

March 31, 2006

Deposits with financial institutions and body corporate:

 

 

Housing Development Finance Corporation Limited ("HDFC")

518

511

GE Capital Services India Limited

8

16

Life Insurance Corporation of India

121

80

 

647

607

Interest accrued but not due (included above)

2

-


Mr. Deepak M. Satwalekar, Director, is also a Director of HDFC Limited. Except as director in this financial institution, he has no direct interest in any transactions.

Deposit with Life Insurance Corporation of India represents amount deposited to settle employee benefit/ leave obligations as and when they arise during the normal course of business.

22.2.10. Fixed assets
Profit / loss on disposal of fixed assets during the quarter ended September 30, 2006 and September 30, 2005 are less than Rs.1 crore and accordingly disclosed in note 22.3

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 for which sale deeds are yet to be executed as at September 30, 2006.

22.2.11. Details of Investments
Details of investments in and disposal of securities during the quarter and half year ended September 30, 2006 and 2005:-

in Rs crore

 

Quarter ended

Half-year ended

Particulars

September 30,

September 30,

 

2006

2005

2006

2005

 

 

 

 

 

Investment in securities

 

 

 

 

Liquid Mutual funds

1,284

1,341

2,996

1,621

 

1,284

1,341

2,996

1,621

Redemption / Disposal of Investment in securities

 

 

 

 

Liquid Mutual funds

104

347

936

502

 

104

347

936

502

Net movement in investment

1,180

994

2,060

1,119


22.2.12. Holding of Infosys in its subsidiaries

 

Name of the subsidiary

Country of

Holding as at

 

incorporation

September 30, 2006

March 31, 2006

 

 

 

 

Infosys BPO Ltd

India

96.70%

71.74%

Infosys Technologies ( Australia) Pty Ltd.

Australia

100%

100%

Infosys Technologies ( China) Co. Ltd.

China

100%

100%

Infosys Consulting Inc.

USA

100%

100%

Progeon s.r.o.*

Czech Republic

96.70%

71.74%

* Progeon s.r.o is a wholly owned subsidiary of Infosys BPO Ltd.

22.2.13. Provision for doubtful debts
Periodically, the company evaluates all customer dues to the company for collectibility. The need for provisions is assessed based on various factors including collectibility 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 company normally provides for debtor dues outstanding for 180 days or longer as at the balance sheet date. As at September 30, 2006, the company has provided for doubtful debts of Rs. 1 crore (as at March 31, 2006 Rs. 2 crore) on dues from certain customers although the outstanding amounts were less than 180 days old, since the amounts were considered doubtful of recovery. The company pursues the recovery of the dues, in part or full.

22.2.14 Segment reporting
The Group's operations predominantly relate to providing IT services and Business Process Management, 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 is 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 to 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
Quarter ended September 30, 2006 and 2005:

in Rs. Crore

 

Financial services

Manufacturing

Telecom

Retail

Others

Total

Revenues

1,293

485

651

312

710

3,451

 

819

309

383

241

542

2,294

Identifiable operating expenses

552

207

247

134

274

1,414

 

343

135

140

96

222

936

Allocated expenses

348

130

175

84

191

928

 

221

81

95

69

158

624

Segmental operating income

393

148

229

94

245

1,109

 

255

93

148

76

162

734

Unallocable expenses

 

 

 

 

 

122

 

 

 

 

 

 

96

Operating income

 

 

 

 

 

987

 

 

 

 

 

 

638

Other income (expense), net

 

 

 

 

 

66

 

 

 

 

 

 

43

Net profit before taxes and exceptional items

 

 

 

 

 

1,053

 

 

 

 

 

 

681

Income taxes

 

 

 

 

 

123

 

 

 

 

 

 

69

Net profit after taxes and before exceptional items

 

 

 

 

 

930

 

 

 

 

 

 

612

Income from sale of investments (net of taxes)

 

 

 

 

 

6

 

 

 

 

 

 

-

Net profit after taxes, exceptional items and before minority interest

 

 

 

 

936

612


Half-year ended September 30, 2006 and 2005:

in Rs. Crore

 

Financial services

Manufacturing

Telecom

Retail

Others

Total

Revenues

2,402

921

1,182

605

1,356

6,466

 

1,571

585

739

439

1,032

4,366

Identifiable operating expenses

1,057

391

442

260

553

2,703

 

661

262

279

183

417

1,802

Allocated expenses

656

251

323

165

370

1,765

 

416

149

181

118

302

1,166

Segmental operating income

689

279

417

180

433

1,998

 

494

174

279

138

313

1,398

Unallocable expenses

 

 

 

 

 

228

 

 

 

 

 

 

176

Operating income

 

 

 

 

 

1,770

 

 

 

 

 

 

1,222

Other income (expense), net

 

 

 

 

 

191

 

 

 

 

 

 

71

Net profit before taxes and exceptional items

 

 

 

 

 

1,961

 

 

 

 

 

 

1,293

Income taxes

 

 

 

 

 

229

 

 

 

 

 

 

150

Net profit after taxes and before exceptional items

 

 

 

 

 

1,732

 

 

 

 

 

 

1,143

Income from sale of investments (net of taxes)

 

 

 

 

 

6

 

 

 

 

 

 

-

Net profit after taxes, exceptional items and before minority interest

 

 

 

 

1,738

1,143


Geographic segments

Quarter ended September 30, 2006 and 2005:

in Rs. Crore

 

North America

Europe

India

Rest of the World

Total

Revenues

2,200

892

53

306

3,451

 

1,501

542

34

217

2,294

Identifiable operating expenses

941

355

12

106

1,414

 

618

220

17

81

936

Allocated expenses

592

240

14

82

928

 

398

134

8

84

624

Segmental operating income

667

297

27

118

1,109

 

485

188

9

52

734

Unallocable expenses

 

 

 

 

122

 

 

 

 

 

96

Operating income

 

 

 

 

987

 

 

 

 

 

638

Other income (expense), net

 

 

 

 

66

 

 

 

 

 

43

Net profit before taxes and exceptional items

 

 

 

 

1,053

 

 

 

 

 

681

Income taxes

 

 

 

 

123

 

 

 

 

 

69

Net profit after taxes and before exceptional items

 

 

 

 

930

 

 

 

 

 

612

Income from sale of investments (net of taxes)

 

 

 

 

6

 

 

 

 

 

-

Net profit after taxes, exceptional items and before minority interest

 

 

 

 

936

612


Half-year ended September 30, 2006 and 2005:

in Rs. Crore
 
North America
Europe
India
Rest of the World
Total
Revenues
4,131
1,681
94
560
6,466
 
2,818
1,037
83
428
4,366
Identifiable operating expenses
1,794
673
32
204
2,703
 
1,187
421
36
158
1,802
Allocated expenses
1,128
459
25
153
1,765
 
730
252
20
164
1,166
Segmental operating income
1,209
549
37
203
1,998
 
901
364
27
106
1,398
Unallocable expenses        
228
         
176
Operating income        
1,770
         
1,222
Other income (expense), net        
191
         
71
Net profit before taxes and exceptional items        
1,961
         
1,293
Income taxes        
229
         
150
Net profit after taxes and before exceptional items        
1,732
         
1,143
Income from sale of investments (net of taxes)        
6
         
-
Net profit after taxes, exceptional items and before minority interest        
1,738
1,143

22.2.15. Dividends remitted in foreign currencies
Infosys does not make any direct remittances of dividends in foreign currency. The company remits the equivalent of the dividends payable to the holders of ADS ("ADS holders") in Indian Rupees to the depositary 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.

Particulars of dividends remitted:-

in Rs. crore

Particulars

Number of shares to which the dividends relate

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

Final dividend for Fiscal 2005

3,77,66,327

-

-

-

25

Final dividend for Fiscal 2006

3,85,47,135

-

-

33

-

Silver Jubilee Special Dividend

3,85,47,135

-

-

116

-

22.2.16. Conversion of cumulative preference shares in Infosys BPO
Infosys BPO had issued an aggregate of 87,50,000 0.005% Cumulative Convertible Preference shares of par value Rs. 100 each to Citicorp International Finance Corporation ("CIFC") for an aggregate consideration of Rs. 94 crore as per the shareholder's agreement as of March 31, 2005. Each preference share was convertible to one equity share of par value Rs. 10/-. On June 30, 2005, CIFC exercised its rights under the shareholders' agreement and converted the preference shares to equity shares. Pursuant to the conversion, the equity share capital of Infosys BPO increased by Rs. 9 crore to Rs. 33 crore and the share premium increased by Rs. 79 crore to Rs. 85 crore. On June 30, 2006, the company completed the acquisition of the entire holdings (87,50,000 shares amounting to 23% of the equity on a fully diluted basis) of CIFC in Infosys BPO for a consideration of Rs 530 crore ( US $ 115.13 Mn). The net consideration of Rs 309 crore, after withholding taxes of Rs 221 crore was remitted to CIFC on the same date.

22.2.17. Provisions for investments
The Company evaluates all investments for any diminution in their carrying values that is other than temporary. The company made a provision of Rs.nil and Rs. 2 crore during the quarter and half year ended September 30, 2006 (for the quarter and half year ended September 30, 2005 NIL ) on trade investments.

The company provided Rs. 0.03 crore and Rs. 1 crore during the quarter and half year ended September 30, 2006 (for the quarter and half year ended September 30, 2005 Rs.1 crore and Rs.1 crore respectively) on revision of the carrying amount of non-trade current investments to fair value.

22.2.18. Reconciliation of basic and diluted shares used in computing earnings per share

At the annual general meeting held on June 10, 2006, the shareholders approved a 1:1 bonus issue (stock dividend) for all shareholders including the ADR holders i.e. one additional equity share for every one existing share held by the members by capitalizing a part of the general reserves. The record date for the bonus issue was July 14, 2006 and shares were allotted on July 15, 2006. All basic and diluted shares used in determining earnings per share are after considering the effect of bonus issue.

in Rs. crore

 

Quarter ended

Half-year ended

 

September 30,

September 30,

 

2006

2005

2006

2005

Number of shares considered as basic weighted average shares outstanding

55,47,72,296

54,42,02,438

55,37,98,511

54,30,96,662

Add: Effect of dilutive issues of shares/stock options

1,29,73,744

1,58,58,862

1,31,43,886

1,57,93,928

Number of shares considered as weighted average shares and potential shares outstanding

56,77,46,039

56,00,61,300

56,69,42,396

55,88,90,590


22.2.19 Exceptional item
During the year ended March 31, 2005 the company sold its entire investment in Yantra Corporation, USA (Yantra) for a total consideration of US $12.57 million. An amount of Rs. 49 crore representing 90% of the consideration was received by the company and the balance amount was deposited in Escrow to indemnify any contractual contingencies.

During the half year ended September 30, 2006, the company received the balance amount of Rs. 5 crore on fulfillment of the Escrow obligations. Since the carrying value of the investment is nil, the entire proceeds of Rs. 5 crore (net of taxes, as applicable) has been recognized in the profit and loss account as an exceptional item.

During the half year ended September 30, 2006, the company received Rs. 1 crore from CiDRA Corporation towards redemption of shares on recapitalisation. The remainder of investment was written off against provision made earlier.

22.2.20 Gratuity Plan
Effective April 1, 2006 the company adopted the revised accounting standard on employee benefits. Pursuant to the adoption, the transitional obligations of the company amounted to Rs. 13 crore. As required by the standard, the obligation has been recorded with the transfer of Rs.13 crore to general reserves.

The following table set out the status of the gratuity plan as required under AS 15.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation:

in Rs. Crore

Particulars

Half year ended

 

September 30, 2006

Obligations at period beginning

183

Service Cost

23

Interest cost

7

Actuarial (gain)/loss

(1)

Benefits paid

(7)

Obligations at period end

205

 

 

Defined benefit obligation liability as at the balance sheet is wholly funded by the company

 

 

 

Change in plan assets

 

Plans assets at period beginning, at fair value

170

Expected return on plan assets

7

Actuarial gain/(loss)

2

Contributions

41

Benefits paid

(7)

Plans assets at period end, at fair value

213

 

 

Reconciliation of present value of the obligation and the fair value of the plan assets:

 

Fair value of plan assets at the end of the year

213

Present value of the defined benefit obligations at the end of the period

205

Asset recognized in the balance sheet

8

 

 

Gratuity cost for the period

 

Service cost

23

Interest cost

7

Expected return on plan assets

(7)

Actuarial (gain)/loss

(2)

Net gratuity cost

21

 

 

Investment details of plan assets

 

100% of the plan assets are invested in debt instruments.

 

 

 

 

 

Assumptions

 

Interest rate

7.62%

Estimated rate of return on plan assets

7.62%


The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

22.2.21 Cash flow statement

22.2.21.a
The balance of cash and cash equivalents includes Rs. 3 crore as at September 30, 2006 (Rs. 3 crore as at March 31, 2006 ) set aside for payment of dividends.

22.2.21.b Restricted Cash
Deposits with financial institutions and body corporate as at September 30, 2006 include an amount of Rs. 121 crore (Rs. 80 crore as at March 31, 2006) deposited with Life Insurance Corporation of India to settle employee benefit/ leave obligations as and when they arise during the normal course of business. This amount is considered as restricted cash and is hence not considered "cash and cash equivalents".

22.3 Details of rounded off amounts
The financial statements are represented in Rs. crore as per the approval received from Department of Company Affairs "DCA" earlier. Those items which were not represented in the financial statement due to rounding off to the nearest Rs. crore are given below.

Balance Sheet Items

in Rs. Crore

 

 

As at

Schedule

Description

 

 

 

 

September 30, 2006

March 31, 2006

 

 

 

 

3

Fixed assets

 

 

 

Deductions/retirements

 

 

 

Land: free-hold

-

0.01

 

Plant and machinery

0.06

-

 

Furniture and fixtures

0.05

-

 

Depreciation

 

 

 

Vehicles

1.00

0.19

 

 

 

 

7

Cash on hand

0.05

0.04

 

 

 

 

8

Unsecured, considered doubtful

 

 

 

Advance to gratuity trust

-

-

 

Loans and advances to employees

-

0.50

 

Provision for doubtful loans and advances to employees

-

0.50

 

 

 

 

22.2.9

Loans & Advances

 

 

 

Interest accrued but not due - Deposits with Financial Institutions and Body Corporates

-

0.10


Profit & Loss Items

in Rs. Crore

 

 

Quarter ended

Half-year ended

Schedule

Description

September 30,

September 30,

 

 

2006

2005

2006

2005

Profit & Loss

Provision for investments

0.22

-

3.02

-

 

 

 

 

 

 

12

Selling and Marketing expenses

 

 

 

 

 

Contribution to provident and other funds

0.76

0.42

1.45

0.57

 

Advertisements

1.22

0.43

2.03

0.92

 

Printing & Stationery

0.34

0.47

0.83

1.03

 

Sales promotion expenses

0.61

0.38

0.91

0.64

 

Office maintenance

0.02

0.05

0.13

0.29

 

Insurance charges

0.08

0.11

0.10

0.22

 

Computer maintenance

0.05

0.00

0.05

0.00

 

Staff welfare

0.58

0.33

1.38

0.44

 

Software Packages

 

 

 

 

 

for Own Use

0.42

0.01

0.42

0.07

 

Communication Expenses

0.29

0.29

0.56

0.42

 

Consumables

0.10

0.06

0.19

0.13

 

 

 

 

 

 

13

General and Administrative expenses

 

 

 

 

 

Provision for doubtful loans and advances

(0.06)

0.08

0.10

0.15

 

Commission to non-whole time directors

0.57

0.38

1.10

0.78

 

Auditor's remuneration :

 

 

 

 

 

statutory audit fees

0.37

0.27

0.64

0.53

 

out-of-pocket expenses

0.02

0.01

0.04

0.01

 

Freight charges

0.23

0.23

0.45

0.41

 

Research grants

3.29

0.12

4.98

0.21

 

Software packages

 

 

 

 

 

for own use

-

0.30

-

0.30

 

Bank charges and commission

0.67

0.46

1.01

0.65

 

 

 

 

 

 

20

Provision for investments

0.22

0.51

3.02

0.57

 

 

 

 

 

 

22.2.1

Aggregate expenses

 

 

 

 

 

Provision for doubtful loans and advances

(0.06)

0.08

0.10

0.15

 

Commission to non-whole time directors

0.57

0.38

1.10

0.69

 

Sales promotion expenses

 

 

 

 

 

Auditor's remuneration

 

 

 

 

 

statutory audit fees

0.37

0.27

0.64

0.53

 

out-of-pocket expenses

0.02

0.01

0.04

0.01

 

Bank charges and commission

0.67

0.46

1.01

0.65

 

Freight charges

0.23

0.23

0.45

0.41

 

Research grants

3.29

0.12

4.98

0.21

 

 

 

 

 

 

22.2.10

Profit on disposal of fixed assets, included in miscellaneous income

-

0.18

0.04

0.23

 

Loss on disposal of fixed assets, included in miscellaneous expenses

-

(0.03)

(0.01)

(0.03)

 

 

 

 

 

 

22.2.17

Provision for investments

0.22

0.51

3.02

0.57


Cash Flow Statement Items

 

Schedule

Description

 

For the Half year ended

 

 

 

September 30,

 

 

2006

2005

 

 

 

 

Cash Flow

Profit/ loss on sale of fixed assets

-

0.20

Statement

Provisions for investments

3.02

0.57

 

Proceeds on disposal of fixed assets

3.92

0.25


Transactions with key management personnel

Key management personnel comprise our directors and statutory officers.

Particulars of remuneration and other benefits provided to key management personnel during the quarter and half year ended September 30, 2006 and 2005 are as follows:

( figures in italics are corresponding to the quarter and half year ended September 30, 2005)

 

Name

Salary

Contributions to provident and other funds

Perquisites and incentives

Total Remuneration

Chairman and Chief Mentor

 

 

 

 

N R Narayana Murthy*

0.02

0.01

0.10

0.13

 

0.03

0.01

0.05

0.09

 

0.06

0.02

0.21

0.29

 

0.06

0.02

0.11

0.19

Chief Executive Officer and Managing Director

 

 

 

 

Nandan M Nilekani

0.04

0.01

0.08

0.13

 

0.03

0.01

0.05

0.09

 

0.08

0.02

0.19

0.29

 

0.06

0.02

0.11

0.19

President , Chief Operating Officer and Joint Managing Director

 

 

 

 

S Gopalakrishnan

0.04

0.01

0.08

0.13

 

0.03

0.01

0.05

0.09

 

0.08

0.02

0.20

0.30

 

0.06

0.02

0.12

0.20

Whole-time Directors

 

 

 

 

K Dinesh

0.03

0.01

0.08

0.12

 

0.03

0.01

0.05

0.09

 

0.06

0.02

0.19

0.27

 

0.06

0.02

0.10

0.18

S D Shibulal

0.04

0.01

0.08

0.13

 

0.23

-

0.14

0.37

 

0.07

0.02

0.16

0.25

 

0.45

-

0.14

0.59

T V Mohandas Pai

0.06

0.01

0.14

0.21

 

0.05

0.02

0.11

0.18

 

0.12

0.04

0.35

0.51

 

0.10

0.04

0.22

0.36

Srinath Batni

0.05

0.01

0.12

0.18

 

0.04

0.02

0.10

0.16

 

0.10

0.02

0.30

0.42

 

0.08

0.03

0.19

0.30

Chief Financial Officer

 

 

 

 

V Balakrishnan

0.05

0.01

0.09

0.15

 

0.03

0.01

0.08

0.12

 

0.09

0.02

0.27

0.38

 

0.06

0.02

0.22

0.30

* Wholetime director till August 20, 2006

Particulars of remuneration and other benefits paid to key management personnel during the quarter ended September 30, 2006 and 2005:

 

Name

Commission

Sitting fees

Reimbursement of expenses

Total remuneration

Non-Whole time Directors

 

 

 

 

Deepak M Satwalekar

0.06

-

-

0.06

 

0.05

-

-

0.05

 

0.12

-

-

0.12

 

0.09

0.01

-

0.10

Prof. Marti G Subrahmanyam

0.06

-

0.02

0.08

 

0.04

-

0.02

0.06

 

0.12

-

0.05

0.17

 

0.08

-

0.07

0.15

Philip Yeo

-

-

-

-

 

-

-

-

-

 

-

-

-

-

 

0.03

-

-

0.03

Dr. Omkar Goswami

0.05

-

0.01

0.06

 

0.04

0.01

0.01

0.06

 

0.10

-

0.01

0.11

 

0.08

0.01

0.02

0.11

Sen.Larry Pressler

0.02

-

-

0.02

 

0.04

-

-

0.04

 

0.03

-

0.03

0.06

 

0.08

-

-

0.08

Rama Bijapurkar

0.06

-

-

0.06

 

0.04

-

-

0.04

 

0.12

-

0.01

0.13

 

0.08

-

-

0.08

Claude Smadja

0.06

-

0.04

0.10

 

0.04

-

0.05

0.09

 

0.12

-

0.13

0.25

 

0.08

-

0.08

0.16

Sridar A Iyengar

0.09

-

0.01

0.10

 

0.07

-

0.04

0.11

 

0.17

-

0.08

0.25

 

0.14

-

0.11

0.25

Jeffrey Lehman

0.05

-

-

0.05

 

-

-

-

-

 

0.10

-

-

0.10

 

-

-

-

-

David Boyles

0.06

-

-

0.06

 

0.03

-

-

0.03

 

0.12

-

-

0.12

 

0.03

-

-

0.03

N R Narayana Murthy*

0.03

-

-

0.03

 

-

-

-

-

 

0.03

-

-

0.03

 

-

-

-

-

* Appointed as Additional Director effective August 21, 2006.