Accounts Class 12 project cash flow statement and ratio analysis
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This document provides the balance sheet and profit and loss account of Tarmac Limited as of March 31, 2012. The balance sheet shows total sources of funds at Rs. 40,350.7 million consisting of shareholders' funds, loans, and deferred tax liability. Total application of funds is also Rs. 40,350.7 million consisting of fixed assets, working capital, investments, loans and advances, and provisions. The profit and loss account shows total income of Rs. 74,758.5 million and total expenses of Rs. 72,000.99 million, resulting in a profit before tax of Rs. 2,747.86 million.
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Accounts Class 12 project cash flow statement and ratio analysis
- 5. BALANCE SHEET OF TARMAC LIMITED AS ON 31st MARCH 2012 PARTICULARS FIGURES IN Rs. (1000) FIGURES IN Rs. (1000) SOURCES OF FUNDS Shareholders’ Fund Share Capital Reserves and Surplus Loans Secured Unsecured Deferred tax Liability(Net) 5,00,00 17,42,59 11,38,86 5,58,29 22,49,59 16,97,15 95,33 TOTAL 40,35,07 APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Working Capital Investment CA, Loans and Advances Inventories Sundry debtor Cash and Bank balances Loans and Advances CL and Provisions Current Liabilities Provisions Net Current Assets 18,41,58 12,40,03 21,46,20 19,51,56 4,49,74 8,50,58 18,16,17 3,12,02 6,01,55 15,29 6,16,84 1,48,34 53,98,08 21,28,19 32,69,89 TOTAL 40,35,07
- 6. PROFIT & LOSS A/C OF TARMAC LIMITED FOR THE YEAR ENDED 31st MARCH 2012 PARTICULARS FIGURES IN Rs. (1000) INCOME: Sales and Operating Earnings Other Income Variation in Stock EXPENSES: Materials Consumed Purchase of Trading Goods Payments to and provision for employees Manufacturing Expense Excise Duty Other expenses Interest and Finance Charges Depreciation Less: Transfer to Revaluation PROFIT BEFORE TAX PRIOR YEAR ADJUSTMENT(NET) PROVISION FOR TAXATION Current tax Deferred Tax Liability PROFIT AFTER TAX Balance brought forward from previous year Balance available for appropriation Appropriations: General reserve Surplus(Loss) Proposed Dividend Tax on Proposed Dividend BASIC EARNING PER SHARE(rupee) 73,90,47 31,39 53.99 74,75,85 28,51,40 14,03,33 12,94,47 3,07,51 70,08 9,17,94 2,46,30 1,09,96 72,00,99 2,74,86 25,71 1,19,50 8,13 1,72,94 4 1,72,98 88,30 7 75,00 9,61 1,72,98 3.46
- 13. BALANCE SHEET OF JOEREX LIMITED AS ON 31st MARCH 2012 PARTICULARS FIGURES IN Rs. (1000) FIGURES IN Rs. (1000) SOURCES OF FUNDS Shareholders’ Fund Share Capital Reserves and Surplus Loans Secured Unsecured Deferred tax Liability(Net) 5,00,00 19,14,91 17,23,12 5,36,89 24,14,91 22,60,01 92,02 TOTAL 47,66,94 APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Working Capital Investment CA, Loans and Advances Inventories Sundry debtor Cash and Bank balances Loans and Advances CL and Provisions Current Liabilities Provisions Net Current Assets 21,64,89 13,43,05 19,32,88 23,06,67 6,04,64 10,04,02 16,55,15 4,80,87 8,21,84 8,21,84 2,32,91 58,48,21 21,36,02 37,12,19 TOTAL 47,66,19
- 14. PROFIT & LOSS A/C OF JOEREX LIMITED FOR THE YEAR ENDED 31st MARCH 2012 PARTICULARS FIGURES IN Rs. (1000) INCOME: Sales and Operating Earnings Other Income Variation in Stock EXPENSES: Materials Consumed Purchase of Trading Goods Payments to and provision for employees Manufacturing Expense Excise Duty Other expenses Interest and Finance Charges Depreciation Less: Transfer to Revaluation PROFIT BEFORE TAX PRIOR YEAR ADJUSTMENT(NET) PROVISION FOR TAXATION Current tax Deferred Tax Liability PROFIT AFTER TAX Balance brought forward from previous year Balance available for appropriation Appropriations: General reserve Surplus(Loss) Proposed Dividend BASIC EARNING PER SHARE(rupee) 74,20,31 41,69 (38,45) 74,23,55 25,91,83 15,21,00 13,54,15 2,71,41 75,41 8,44,78 2,15,82 1,25,84 70,00,24 4,23,31 1,50,84 (3,31) 2,75,78 7 2,75,85 1,73,20 3 90,00 2,75,85 5.52
- 21. INFOSYS LIMITED in ` crore Balance Sheet as at March 31, Note 2012 2011 EQUITY AND LIABILITIES SHAREHOLDERS' FUNDS Share capital 2.1 287 287 Reserves and surplus 2.2 29,470 24,214 29,757 24,501 NON-CURRENT LIABILITIES Deferred tax liabilities (net) 2.3 - - Other long-term liabilities 2.4 21 25 21 25 CURRENT LIABILITIES Trade payables 2.5 68 85 Other current liabilities 2.6 2,365 1,770 Short-term provisions 2.7 3,604 2,473 6,037 4,328 35,815 28,854 ASSETS NON-CURRENT ASSETS Fixed assets Tangible assets 2.8 4,045 4,056 Intangible assets 2.8 16 - Capital work-in-progress 588 249 4,649 4,305 Non-current investments 2.10 1,068 1,206 Deferred tax assets (net) 2.3 189 230 Long-term loans and advances 2.11 1,431 1,244 Other non-current assets 2.12 13 - 7,350 6,985 CURRENT ASSETS Current investments 2.10 341 119 Trade receivables 2.13 5,404 4,212 Cash and cash equivalents 2.14 19,557 15,165 Short-term loans and advances 2.15 3,163 2,373 28,465 21,869 35,815 28,854 1 & 2 As per our report attached for B S R & Co. Chartered Accountants Firm's Registration Number:101248W Natrajh Ramakrishna K.V.Kamath S. Gopalakrishnan S. D. Shibulal Deepak M. Satwalekar Partner Chairman Executive Co-Chairman Chief Executive Officer and Director Membership No. 32815 Managing Director Dr. Omkar Goswami Sridar A. Iyengar David L. Boyles Prof. Jeffrey S. Lehman Director Director Director Director R.Seshasayee Ann M. Fudge Ravi Venkatesan Srinath Batni Director Director Director Director V. Balakrishnan B. G. Srinivas Ashok Vemuri K. Parvatheesam Bangalore Director and Director Director Company Secretary April 13, 2012 Chief Financial Officer SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1
- 22. 2 NOTES ON ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2012 The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current period presentation. 2.1 SHARE CAPITAL in ` crore, except as otherwise stated Particulars 2012 2011 Authorized Equity shares, `5/- par value 60,00,00,000 (60,00,00,000) equity shares 300 300 Issued, Subscribed and Paid-Up Equity shares, `5/- par value (1) 287 287 57,42,30,001 (57,41,51,559) equity shares fully paid-up 287 287 Forfeited shares amounted to `1,500/- (`1,500/-) Particulars Number of shares Amount Number of shares Amount Number of shares at the beginning 57,41,51,559 287 57,38,25,192 287 78,442 - 3,26,367 - Number of shares at the end 57,42,30,001 287 57,41,51,559 287 The Board of Directors, in their meeting on October 12, 2011, declared an interim dividend of `15 per equity share. Further the Board of Directors, in their meeting on April 13, 2012, proposed a final dividend of `22 per equity share and a special dividend - 10 years of Infosys BPO operations of ` 10 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on June 9, 2012. The total dividend appropriation for the year ended March 31, 2012 amounted to `3,137 crore including corporate dividend tax of `438 crore. As at March 31, [Of the above, 53,53,35,478 (53,53,35,478) equity shares, fully paid up have been issued as bonus shares by capitalization of the general reserve. ] The Company has only one class of shares referred to as equity shares having a par value of `5/-. Each holder of equity shares is entitled to one vote per share. (1) Refer to note 2.31 for details of basic and diluted shares The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2011, the amount of per share dividend recognized as distributions to equity shareholders was `60. The dividend for the year ended March 31, 2011 includes `20 per share of final dividend, `10 per share of interim dividend and `30 per share of 30th year special dividend. The total dividend appropriation for the year ended March 31, 2011 amounted to `4,013 crore including corporate dividend tax of `568 crore. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders. As at March 31, 2012 As at March 31, 2011 Add: Shares issued on exercise of employee stock options Amounts in the financial statements are presented in ` crore, except for per share data and as otherwise stated. Certain amounts that are required to be disclosed and do not appear due to rounding off are detailed in note 2.37. All exact amounts are stated with the suffix “/-”. One crore equals 10 million. The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2012 and March 31, 2011 is set out below: 8
- 23. Stock option plans 1998 Stock Option Plan ('the 1998 Plan') 1999 Stock Option Plan ('the 1999 Plan') 2012 2011 The 1998 Plan : Options outstanding, beginning of the period 50,070 242,264 Less: Exercised 49,590 188,675 Forfeited 480 3,519 Options outstanding, end of the period - 50,070 Options exercisable, end of the period - - The 1999 Plan : Options outstanding, beginning of the period 48,720 204,464 Less: Exercised 28,852 137,692 Forfeited 8,185 18,052 Options outstanding, end of the period 11,683 48,720 Options exercisable, end of the period 7,429 40,232 Range of exercise prices per share (`) Number of shares arising out of options Weighted average exercise price (in `) The 1999 Plan: - - - 11,683 0.71 2,121 11,683 0.71 2,121 The Company has two Stock Option Plans. 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. 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 had been granted at 100% of fair market value. The 1998 Plan lapsed on January 6, 2008, and consequently no further shares will be issued to employees under this plan. In fiscal 2000, the Company instituted the 1999 Plan. The shareholders and the Board of Directors approved the plan in September 1999, which provides for the issue of 5,28,00,000 equity shares to the employees. The compensation committee administers the 1999 Plan. Options were issued to employees at an exercise price that is not less than the fair market value. The 1999 Plan lapsed on June 11, 2009, and consequently no further shares will be issued to employees under this plan. The activity in the 1998 Plan and 1999 Plan during the year ended March 31, 2012 and March 31, 2011, respectively, is set out below: Year ended March 31, As at March 31, 2012 Weighted average remaining contractual life (in years) Particulars The following tables summarize information about the options outstanding under the 1998 Plan and 1999 Plan as at March 31, 2012 and March 31, 2011 respectively: The weighted average share price of options exercised under the 1998 Plan during the year ended March 31, 2012 and March 31, 2011 was `2,799 and `2,950, respectively. The weighted average share price of options exercised under the 1999 Plan during the year ended March 31, 2012 and March 31, 2011 was `2,702 and `2,902, respectively. 300-700 701-2,500 9
- 24. Range of exercise prices per share (`) Number of shares arising out of options Weighted average exercise price (in `) 24,680 0.73 587 25,390 0.56 777 50,070 0.65 683 The 1999 Plan: 33,759 0.65 448 14,961 1.71 2,121 48,720 0.97 962 2.2 RESERVES AND SURPLUS in ` crore Particulars 2012 2011 Capital reserve - Opening balance 54 54 Add: Transferred from Surplus - - 54 54 Securities premium account - Opening balance 3,057 3,022 Add: Receipts on exercise of employee stock options 6 24 Income tax benefit arising from exercise of stock options 1 11 3,064 3,057 General reserve - Opening balance 5,512 4,867 Add: Transferred from Surplus 847 645 6,359 5,512 Surplus- Opening Balance 15,591 13,806 Add: Net profit after tax transferred from Statement of Profit and Loss 8,470 6,443 Reserves on transfer of assets and liabilities of Infosys Consulting Inc. (refer to note 2.25) (84) - Amount available for appropriation 23,977 20,249 Appropriations: Interim dividend 862 574 30th year special dividend - 1,722 Special dividend - 10 years of Infosys BPO operations 574 - Final dividend 1,263 1,149 Total dividend 2,699 3,445 Dividend tax 438 568 Amount transferred to general reserve 847 645 Surplus- Closing Balance 19,993 15,591 29,470 24,214 As at March 31, As at March 31, 2012 and March 31, 2011, the Company had 11,683 and 98,790 number of shares reserved for issue under the 1998 and 1999 employee stock option plans, respectively. Most of the shares reserved for issue under the 1998 and 1999 employee stock option plans are vested and are exercisable at any point of time, except for 4,254 shares issued under the 1999 employee stock option plan which is unvested as of March 31, 2012. The vesting date for these 4,254 shares is June 16, 2012. 701-1,400 300-700 As at March 31, 2011 Weighted average remaining contractual life (in years) 701-2,500 300-700 The 1998 Plan: 10
- 25. 2.3 DEFERRED TAXES in ` crore Particulars 2012 2011 Deferred tax assets Fixed assets 266 234 Trade receivables 18 19 Unavailed leave 101 85 Computer software 35 24 Accrued compensation to employees 31 24 Others 8 20 459 406 Deferred tax liabilities Branch profit tax 270 176 270 176 2.4 OTHER LONG-TERM LIABILITIES in ` crore Particulars 2012 2011 Others 14 18 7 7 21 25 2.5 TRADE PAYABLES in ` crore Particulars 2012 2011 Trade payables(1) 68 85 68 85 (1) Includes dues to subsidiaries (refer to note 2.25) 61 55 2.6 OTHER CURRENT LIABILITIES in ` crore Particulars 2012 2011 Accrued salaries and benefits Salaries and benefits 53 42 Bonus and incentives 394 363 Other liabilities 824 537 Retention monies 42 21 Withholding and other taxes payable 454 292 4 4 Other payables(1) 31 1 Advances received from clients 14 19 Unearned revenue 519 488 Mark-to-market loss on forward and options contracts 28 - Unpaid dividends 2 3 2,365 1,770 (1) Includes dues to subsidiaries (refer to note 2.25) 29 - As at March 31, As at March 31, As at March 31, As at March 31, 2012 and March 31, 2011, the Company has provided for branch profit tax of `270 and `176 crore, respectively, for its overseas branches, as the Company estimates that these branch profits would be distributed in the foreseeable future. Branch profit tax balance increased by `22 crore during the year ended March 31, 2012 due to foreign currency fluctuation impact. Provision for expenses Gratuity obligation - unamortised amount relating to plan amendment, current (refer to note 2.28) Gratuity obligation - unamortised amount relating to plan amendment (refer to note 2.28 ) Rental deposits received from subsidiary (refer to note 2.25) As at March 31, Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. 11
- 26. 2.7 SHORT-TERM PROVISIONS in ` crore Particulars 2012 2011 Provision for employee benefits Unavailed leave 379 303 Others Proposed dividend 1,837 1,149 Provision for Tax on dividend 298 187 Income taxes 967 756 Post-sales client support and warranties 123 78 3,604 2,473 Provision for post-sales client support and warranties The movement in the provision for post-sales client support and warranties is as follows : in ` crore Particulars 2012 2011 Balance at the beginning 78 73 Provision recognized/(reversal) 60 5 Provision utilised (15) - Exchange difference during the period - - Balance at the end 123 78 As at March 31, Provision for post-sales client support is expected to be utilized over a period of 6 months to 1 year. Year ended March 31, 12
- 32. WIPRO LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (` in millions, except share and per share data, unless otherwise stated) As of March 31, Notes 2012 2012 2012 Convenience translation into US$ in millions (Unaudited) Refer note 2 (iv) ASSETS Goodwill…………………………………………………………………………………………………………………… 5 67,937 74,712 1,344 Intangible assets…………………………………………………………………………………………………………………… 5 4,229 4,408 79 Property, plant and equipment…………………………………………………………………………………………………………………… 4 58,988 59,981 1,079 Investment in equity accounted investee …………………………………………………………………………………………………………………… 13 3,232 3,256 59 Derivative assets…………………………………………………………………………………………………………………… 12 3,462 - - Non-current tax assets…………………………………………………………………………………………………………………… 10,287 10,505 189 Deferred tax assets…………………………………………………………………………………………………………………… 2,597 3,114 56 Other non-current assets…………………………………………………………………………………………………………………… 9 11,781 12,227 220 Total non-current assets…………………………………………………………………………………………………………………… 162,513 168,203 3,027 Inventories…………………………………………………………………………………………………………………… 7 10,662 11,888 214 Trade receivables…………………………………………………………………………………………………………………… 80,328 85,748 1,543 Other current assets…………………………………………………………………………………………………………………… 9 25,743 28,667 516 Unbilled revenues…………………………………………………………………………………………………………………… 30,025 32,009 576 Available for sale investments…………………………………………………………………………………………………………………… 6 41,961 70,105 1,262 Current tax assets…………………………………………………………………………………………………………………… 5,635 7,641 138 Derivative assets…………………………………………………………………………………………………………………… 12 1,468 5,911 106 Cash and cash equivalents…………………………………………………………………………………………………………………… 8 77,666 59,852 1,077 Total current assets…………………………………………………………………………………………………………………… 273,488 301,821 5,431 TOTAL ASSETS…………………………………………………………………………………………………………………… 436,001 470,024 8,458 EQUITY Share capital…………………………………………………………………………………………………………………… 4,917 4,920 89 Share premium…………………………………………………………………………………………………………………… 30,457 30,828 555 Retained earnings…………………………………………………………………………………………………………………… 241,912 257,714 4,638 Share based payment reserve…………………………………………………………………………………………………………………… 1,976 1,652 30 Other components of equity…………………………………………………………………………………………………………………… 6,594 9,206 166 Shares held by controlled trust…………………………………………………………………………………………………………………… (542) (542) (10) Equity attributable to the equity holders of the company……………………………………………………………………………………………………… 285,314 303,778 5,467 Non-controlling Interest…………………………………………………………………………………………………………………… 849 1,027 18 Total equity…………………………………………………………………………………………………………………… 286,163 304,805 5,485 LIABILITIES Long - term loans and borrowings…………………………………………………………………………………………………………………… 10 22,510 689 12 Deferred tax liabilities…………………………………………………………………………………………………………………… 353 391 7 Derivative liabilities…………………………………………………………………………………………………………………… 12 307 72 1 Non-current tax liability…………………………………………………………………………………………………………………… 5,403 4,457 80 Other non-current liabilities…………………………………………………………………………………………………………………… 11 3,519 4,393 79 Provisions…………………………………………………………………………………………………………………… 11 61 29 1 Total non-current liabilities…………………………………………………………………………………………………………………… 32,153 10,031 181 Loans and borrowings and bank overdrafts…………………………………………………………………………………………………………………… 10 36,448 63,244 1,138 Trade payables and accrued expenses…………………………………………………………………………………………………………………… 47,258 50,918 916 Unearned revenues…………………………………………………………………………………………………………………… 9,569 9,548 172 Current tax liabilities…………………………………………………………………………………………………………………… 7,232 10,151 183 Derivative liabilities…………………………………………………………………………………………………………………… 12 6,354 8,790 158 Other current liabilities…………………………………………………………………………………………………………………… 11 9,703 11,410 205 Provisions…………………………………………………………………………………………………………………… 11 1,121 1,127 20 Total current liabilities…………………………………………………………………………………………………………………… 117,685 155,188 2,792 TOTAL LIABILITIES…………………………………………………………………………………………………………………… 149,838 165,219 2,973 TOTAL EQUITY AND LIABILITIES…………………………………………………………………………………………………………………… 436,001 470,024 8,458 As of June 30, The accompanying notes form an integral part of these condensed consolidated interim financial statements As per our report of even date attached For and on behalf of the Board of Directors for B S R & Co. Azim Premji B C Prabhakar T K Kurien Chartered Accountants Chairman Director CEO, IT Business & Firm's Registration No:101248W Executive Director Natrajh Ramakrishna Suresh C Senapaty V Ramachandran Partner Chief Financial Officer Company Secretary Membership No. 032815 & Director Bangalore July 24, 2012
- 33. Land Buildings Plant and machinery* Furniture fixtures and equipment Vehicles Total Accumulated depreciation/impairment: As at April 1, 2012 ` - ` 3,259 ` 42,797 ` 8,266 ` 1,885 ` 56,207 Translation adjustment…………………… - 95 939 92 11 1,137 Depreciation.……………………………… - 183 1,918 411 46 2,558 Disposal / adjustments.…………………… - (28) (137) (54) (123) (342) As at June 30, 2012 ` - ` 3,509 ` 45,517 ` 8,715 ` 1,819 ` 59,560 Capital work-in-progress…………………. ` 6,051 Net carrying value as at June 30, 2012 ` 59,981 *Including computer equipment and software. 5. Goodwill and intangible assets The movement in goodwill balance is given below: Year ended March 31,2012 Three months ended June 30, 2012 Balance at the beginning of the period…………… ` 54,818 ` 67,937 Translation adjustment…………………………… 7,207 5,124 Acquisition through business combination, net….. 5,912 1,651 Balance at the end of the period…………………. ` 67,937 ` 74,712 Acquisition through business combination for the three months ended June 30, 2012, includes goodwill recognised based on provisional purchase price allocation of Promax Group under the IT Services Segment. Goodwill as at March 31, 2012 and June 30, 2012 has been allocated to the following reportable segments: Segment As at March 31, 2012 As at June 30, 2012 IT Services……………...…………………… ` 49,809 ` 55,370 IT Products……………………………..…… 546 603 Consumer Care and Lighting……………...... 15,354 16,463 Others………………………………………. 2,228 2,276 Total………………………………………… ` 67,937 ` 74,712 Intangible assets Customer related Marketing related Total Gross carrying value: As at April 1, 2011 ` 1,943 ` 3,395 ` 5,338 Translation adjustment……………………….... 1 (29) (28) Acquisition through business combination.......... 1,486 - 1,486 Additions………………………………………... - 33 33 As at June 30, 2011 ` 3,430 ` 3,399 ` 6,829 Accumulated amortization and impairment: As at April 1, 2011 ` 733 ` 1,054 ` 1,787 Translation adjustment………………………… - (13) (13) Amortization……………………………………. 92 17 109 As at June 30, 2011 ` 825 ` 1,058 ` . 1,883 Net carrying value as at June 30, 2011………... ` 2,605 ` 2,341 ` 4,946 Gross carrying value: As at April 1, 2011 ` 1,943 ` 3,395 ` 5,338 Translation adjustment……………………….... 123 171 294 Acquisition through business combination………… 864 - 864 Additions………………………………………... - 97 97 As at March 31, 2012 ` 2,930 ` 3,663 ` 6,593
- 34. Intangible assets Customer related Marketing related Total Accumulated amortization and impairment: As at April 1, 2011 ` 733 ` 1,054 ` 1,787 Translation adjustment………………………… - 65 65 Amortization……………………………………. 429 83 512 As at March 31, 2012 ` 1,162 ` 1,202 ` 2,364 Net carrying value as at March 31, 2012……… ` 1,768 ` 2,461 ` 4,229 Gross carrying value: As at April 1, 2012 ` 2,930 ` 3,663 ` 6,593 Translation adjustment……………………….... 82 152 234 Acquisition through business combination.......... 156 - 156 Additions………………………………………... - - - As at June 30, 2012 ` 3,168 ` 3,815 ` 6,983 Accumulated amortization and impairment: As at April 1, 2012 ` 1,162 ` 1,202 ` 2,364 Translation adjustment………………………… - 72 72 Amortization……………………………………. 111 28 139 As at June 30, 2012 ` 1,273 ` 1,302 ` 2,575 Net carrying value as at June 30, 2012………... ` 1,895 ` 2,513 ` 4,408 Net carrying value of marketing-related intangibles includes indefinite life intangible assets (brands and trade- marks) of ` 1,745 and ` 1,815 as of March 31, 2012 and June 30, 2012, respectively. Amortization expense on intangible assets is included in selling and marketing expenses in the condensed consolidated interim statement of income. 6. Available for sale investments Available for sale investments consists of the following: As at March 31, 2012 As at June 30, 2012 Cost* Gross gain recognized directly in equity Gross loss recognized directly in equity Fair Value Cost* Gross gain recognized directly in equity Gross loss recognized directly in equity Fair Value Investment in liquid and short-term mutual funds and others……………………….. ` 32,635 ` 96 ` (25) ` 32,706 ` 59,947 ` 205 ` - ` 60,152 Certificate of deposits……… 9,267 - (12) 9,255 9,934 19 - 9,953 Total ` 41,902 ` 96 ` (37) ` 41,961 ` 69,881 ` 224 ` - ` 70,105 *Available for sale investments include investments amounting to ` 400 (March 31, 2012: ` 400) pledged as margin money deposit for entering into currency future contracts 7. Inventories Inventories consist of the following: As at March 31, 2012 June 30, 2012 Stores and spare parts……………………………………… ` 1,271 ` 1,333 Raw materials and components.……………………………. 4,144 4,894 Work in progress…………………………………………… 1,410 1,226 Finished goods……………………………………………… 3,837 4,435 ` 10,662 ` 11,888
- 35. 8. Cash and cash equivalents Cash and cash equivalents as of March 31, 2012 and June 30, 2012 consist of cash and balances on deposit with banks. Cash and cash equivalents consist of the following: As at March 31, 2012 June 30, 2012 Cash and bank balances…………………………………... ` 41,141 ` 20,879 Demand deposits with banks(1) ………………………… 36,525 38,973 ` 77,666 ` 59,852 (1) These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal. Cash and cash equivalent consists of the following for the purpose of the cash flow statement: As at June 30 2011 2012 Cash and cash equivalents (as per above).. ` 50,752 ` 59,852 Bank overdrafts…………………………. (432) (555) `` 50,320 `` 59,297 9. Other assets As at March 31, 2012 June 30, 2012 Current Interest bearing deposits with corporate (1) ………………………… ` 8,410 ` 9,240 Prepaid expenses ………………..………………..………………… 5,507 6,242 Due from officers and employees…………………………………. 1,681 1,770 Finance lease receivables………………………………………....... 2,003 2,621 Advance to suppliers……………………………. ………………… 1,868 1,848 Deferred contract costs…………………………………………….. 1,659 1,865 Interest receivable……………………………….………………….. 1,123 1,678 Deposits…………………………………………………………….. 227 52 Balance with excise and customs………………………………….. 1,543 1,522 Non-convertible debenture…………………………………………. 45 129 Others……………………………………………………………….. 1,677 1,700 ` 25,743 ` 28,667 Non current Prepaid expenses including rentals for leasehold land……………. ` 3,972 ` 5,043 Finance lease receivables……..……………………………………. 5,710 4,756 Deposits…………………………………………………………….. 1,957 1,370 Non-convertible debenture…………………………………………. 84 - Others……………………..……………..………………………….. 58 1,056 ` 11,781 ` 12,227 Total………………………………………………………………... ` 37,524 ` 40,894 (1) Such deposits earn a fixed rate of interest and will be liquidated within 12 months. 10. Loans and borrowings A summary of loans and borrowings is as follows: As at March 31, 2012 June 30, 2012 Short-term borrowings from bank…………………… ` 35,480 ` 37,872 External commercial borrowing …………………….. 21,728 24,499 Obligations under finance leases……………............... 716 687 Term loans……………………………………………. 1,034 875 Total loans and borrowings………………………….. ` 58,958 ` 63,933
- 36. 11. Other liabilities and provisions As at Other liabilities: March 31, 2012 June 30, 2012 Current: Statutory and other liabilities………… ` 4,241 ` 5,081 Employee benefit obligations……….. 3,176 3,796 Advance from customers……………. 1,157 1,358 Others………………………………… 1,129 1,175 ` 9,703 ` 11,410 Non-current: Employee benefit obligations……….. ` 3,046 ` 3,220 Others……………………………….. 473 1,173 ` 3,519 ` 4,393 Total…………………………………… ` 13,222 ` 15,803 As at March 31, 2012 June 30, 2012 Provisions: Current: Provision for warranty……………………... ` 306 ` 333 Others……………………………………….. 815 794 ` 1,121 ` 1,127 Non-current: Provision for warranty…………………….. ` 61 ` 29 Total……………………………………….. ` 1,182 ` 1,156 Provision for warranty represents cost associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 to 2 year. Other provisions primarily include provisions for tax related contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined. 12. Financial instruments Derivative assets and liabilities: The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. The following table presents the aggregate contracted principal amounts of the Company‟s derivative contracts outstanding: (In millions) As at March 31, 2012 June 30, 2012 Designated derivative instruments Sell $ 1,081 $ 751 £ 4 £ 4 ¥ 1,474 ¥ 1,086 € 17 € 83 Net investment hedges in foreign operations Cross-currency swaps ¥ 24,511 ¥ 24,511 Others $ 262 $ 262 € 40 € 40
- 37. As at March 31, 2012 June 30, 2012 Non designated derivative instruments Sell $ 841 $ 732 £ 58 £ 69 € 44 € 43 AUD 31 AUD 43 Buy $ 555 $ 562 ¥ 1,997 - Cross currency swaps ¥ 7,000 ¥ 7,000 The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges: As at June 30, 2011 2012 Balance as at the beginning of the period…………………………………………… ` (1,226) ` (1,605) Net (gain)/loss reclassified into statement of income on occurrence of hedged transactions(1) ………………………………………………………………………….. 230 (11) Deferred cancellation gains/(losses) relating to roll - over hedging…………………... 16 - Changes in fair value of effective portion of derivatives…………………………….. 13 (2,057) Gain/ (losses) on cash flow hedging derivatives, net………………………………….. ` 259 ` (2,068) Balance as at the end of the period……………………………...................................... ` (967) ` (3,673) Deferred tax thereon…………………………………………………………………… ` 176 ` 568 Balance as at the end of the period, net of deferred tax.………………………………. ` (791) ` (3,105) (1) On occurrence of hedge transactions, net (gain)/loss was included as part of revenues. As at March 31, 2012, June 30, 2011 and 2012, there were no significant gains or losses on derivative transactions or portions thereof that have become ineffective as hedges, or associated with an underlying exposure that did not occur. 13. Investment in equity accounted investees Wipro GE Medical Systems (Wipro GE) The Company holds 49% interest in Wipro GE. Wipro GE is a private entity that is not listed on any public exchange. The carrying value of the investment in Wipro GE as at March 31, 2012 and June 2012 was ` 3,232 and ` 3,131 respectively. The Company‟s share of profits/(loss) of Wipro GE for the three months ended June 30, 2011 and 2012 was ` 110 and ` (101) respectively. Wipro GE had received tax demands aggregating to ` 2,727 (including interest) arising primarily on account of transfer pricing adjustments, denial of export benefits and tax holiday benefits claimed by Wipro GE under the Income Tax Act, 1961 (the “Act”) for the year ended March 31, 2001 to March 31, 2008. The appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by first appellate authority for the years upto March 2004 and further appeals have been filed by the Income tax authorities before the second appellate authority. The first appellate authority has granted partial relief for the year ended March 31, 2005 and further appeal would be preferred by the Company before the second appellate authority. The Company filed appeal before the second appellate authority for the year ended March 31, 2006 after receiving the assessment orders following the directions of the Dispute Resolution Panel. The second appellate authority passed an order directing assessing officer (AO) to give fair opportunity of hearing to the company, the case is pending with AO. For the year ended March 31, 2007, the appeal filed against the demand is pending before the first appellate authority. For the year ended March 31, 2008, company has received draft assessment order against which objections have been filed before Dispute resolution panel. Considering the facts and nature of disallowance and the order of the appellate authority upholding the claims of Wipro GE, Wipro GE believes that the final outcome of the disputes should be in favour of Wipro GE and will not have any material adverse effect on its financial position and results of operations.