Bangalore: Infosys Technologies Limited has no plans to return its burgeoning cash reserves to share holders, the Bangalore-based software major's CEO, Nandan M Nilekani, indicated on July 10.

Speaking to reporters after the company declared first quarter (April-June 2002) numbers, Nilekani said the cash reserves are "strategic and adequate".

"It would give us flexibility to respond to marketing conditions, and marketing. The fact that we have not done acquisition is not anything negative. We have done right alliances," he said.

Cash and cash equivalents of the NASDAQ-listed company increased by Rs 62.27 crore during the quarter, from Rs 1,026.96 crore to Rs 1,089.23 crore, after incurring a capital expenditure of Rs 53.79 crore.

Meanwhile, chief operating officer S Gopalakrishnan said the company is looking at opening a representative office in China in the near future.

Infosys, which initially announced plans to set up a software development centre at Shanghai, has recently said the proposal has been kept on the backburner.

Gopalakrishnan on July 10 said, "China is a market for us, a potential location. We are requesting for information on setting up the centre and other parameters. We are yet to get the complete data. So, there was a delay. Now, we are looking at opening a representative office in China in the near future."

PTI