SUBSIDIARY COMPANIES - ITC Ltd

ITC INFOTECH LIMITED
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the company an obligation to pay more tax in the future,
or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not
that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or substantively enacted by the balance sheet date.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities are translated
at the rate of exchange ruling at the balance sheet date. All exchange differences are dealt with through the profit and loss account except that gains
and losses arising from the retranslation of the opening retained earnings in overseas branches are adjusted against the reserves.
Recruitment costs
Legal costs and other charges incurred to obtain visas and other required immigration papers for recruits, recruitment fees and relocation costs are
charged to the Profit & Loss Account when such costs are incurred.
2. Turnover
The turnover and profit before tax are attributable to the one principal activity of the company.
An analysis of turnover is given below:
Unaudited Unaudited
2012 2012 2011 2011
£ ` £ `
United Kingdom 17,539,289 1,347,718,967 16,133,769 1,158,323,945
India 4,782,616 367,496,213 3,606,992 258,963,991
US 129,455 9,947,322 236,794 17,000,625
Singapore 190,461 14,635,023 9,676 694,688
Europe 1,653,783 127,076,686 2,203,074 158,169,698
Other 52,200 4,011,048 34,538 2,479,656
24,347,804 1,870,885,259 22,224,843 1,595,632,603
3. Other operating charges
Administrative expenses 4,556,845 350,147,970 4,775,531 342,859,248
Provision for leave encashment no longer required (239,429) (18,397,724) — —
4,317,416 331,750,246 4,775,531 342,859,248
4. Operating profit
Operating profit is stated after charging:
Depreciation of owned fixed assets
Auditor’s remuneration:
15,729 1,208,616 17,138 1,230,422
- audit fees 19,750 1,517,590 20,775 1,491,541
- non-audit fees – taxation and other services 3,250 249,730 14,505 1,041,386
Loss / (gain) on foreign exchange
Operating lease costs:
(26,053) (2,001,913) 100,051 7,183,161
Land and buildings 41,919 3,221,056 53,191 3,818,848
Plant and equipment 1,809 139,004 1,809 129,877
5. Directors and employees
The average number of staff employed by the company during the financial year amounted to:
2012 2011
No. No.
Staff
The aggregate payroll costs of the above were:
232 210
Unaudited Unaudited
2012 2012 2011 2011
£ ` £ `
Wages and salaries 10,020,001 769,936,877 8,719,581 626,022,318
Social security costs 997,985 76,685,167 787,840 56,562,973
Remuneration in respect of directors was nil (2011: £nil).
11,017,986 846,622,044 9,507,421 682,585,291
6. Interest receivable & similar income
Bank interest receivable 2,199 168,971 4,285 307,642
Other miscellaneous income 4,343 333,716 — —
6,542 502,687 4,285 307,642
133