This excerpt taken from the INFY 6-K filed Apr 20, 2005.
See, what has happened is, I think all of us know about the MphasiS case. Now, the few things that you must consider in this that this kind of cyber crime could happen anywhere in the world and is happening everywhere in the world, in many places in the world. There are many well known cases in the last two or three months where identity theft involving many more people than compared to the number of account holders that the MphasiS case is talking about. So from our perspective this is in a way actually away. This is an incident where India has been able to demonstrate. First of all we have brought those people to book, right? The people who actually committed this crime. The investigations are going on, and from all that we hear in the press, the police and the investigation authorities seem to be fairly well versed with the nature of the crime, how it is committed, how to catch these kind of criminals. All this has actually been seen in certain sections of the press in the western world as positive, right? I mean, there was one press report that I read which said that, this is an American press report, which said that this place called Pune which I have never heard of, has a cyber crime unit, and then he goes on and says, my home town in the US does not have one. So, good for them. I mean, if you have a way to actually catch and prosecute such people, that is the legal framework that will strengthen our ability to deal with these situations. There will always be a lot of, you know, there are people who are anti-outsourcing, who do not think this is a good thing. They will use, try to use this as a leverage. But long-term, I do not see this, we do not see this as something that will impact India as a destination for outsourcing.
Hi, once again. Wanted to ask you little more clarity on the, you mentioned the top 10 clients that are facing reorganization or something. I wanted to know whether is this going to be largely restricted to the first quarter like what you said in SOX, and my second question is about the rupee and how much hedging has been done, if you can, what are your expectations on the rupee sides.
I did not say top 10, I said a couple of clients among our top clients, just 2 or 3 clients where there are some these organizational changes. Second, yes, we expect the effect of this to be short term, which is why we are saying that first quarter will be flat, but going after that we are going to see a growth which is why we are saying for the year we are expecting dollar term growth to be between 28 to 30%. I will ask Mohan to reply on the rupee-dollar
We have taken 43.62 as a rupee dollar translation rate for the entire year. It is less than the average rates for the previous year and that is why you see the gap between US GAAP growth numbers and Indian GAAP growth numbers. Last time I think it was 44.35 or thereabouts, now it is 43.62 and there is a difference in the growth rates. We have about $ 353 million of forward cover, since we marked to market the entire forward cover at 43.62, that is the rate at which we are carrying in the books.
Page 10 of 15
Can we know how the Rs. 1,100 odd crore are going to be spent this year?
We are going to expand the seat capacity, we are going to invest heavily into technology, these are the two large areas where we are going to expand and we are going to expand our China office. China will grow to about 1,000 people from more than 100 people at this point of time and we need build offices for that.