Additional Information

Cloud Consulting Engagement Global talent

Innovation Integration Intellectual property Knowledge

Mobility Optimization Partnership Platforms

Products Solutions Sustainability Transformation

Infosys 3.0
Accelerating growth
Infosys Annual Report 2011-12 Additional Information

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Accelerating growth
Infosys Annual Report 2011-12 Additional Information

“You should be able to escape the gravitational pull of the past

by constantly adapting and changing your engines of growth
like a rocket.”

N. R. Narayana Murthy
Chairman Emeritus, Infosys Limited

Infosys 3.0
Accelerating growth
Today, when much of the benefits of outsourcing have already been
realized, clients are increasingly turning to providers who understand
their businesses and become partners in their transformational
journey. The IT services industry, however, is rapidly commoditizing
and is staring at scalability issues. We see this as an opportunity to
transform our business and be highly relevant to our clients.
Recently, we drew the road map for building tomorrow's enterprise,
identifying seven trends that will shape the future of our clients'
businesses. Our focus today is to be relevant to the whole range of
our clients' spending – covering Business Transformation, Business
IT Services and Business Innovation. Our goal is to have an improved
portfolio of business that will ensure high-quality, industry-leading
growth, enhanced revenue productivity and relatively higher margins.
We have restructured the company and put in place a leadership
structure to deliver on this transformational journey. Nurturing
our diverse global talent pool is the key to propelling these growth
engines and sustaining the momentum of our business.
Welcome to the new and improved version of Infosys, which we call
Infosys 3.0

Download the report here:

http://www.infosys.com/AR-2012

Accelerating growth
Infosys Annual Report 2011-12 Additional Information

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Accelerating growth
Infosys Annual Report 2011-12 Additional Information

Contents
Awards for Excellence 2011-12 . . . . . . . . . . . . . . . . . . . . . 2

Ratio analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Independent auditors' report . . . . . . . . . . . . . . . . . . . . . . 10

Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Statement of Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . 14

Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Significant accounting policies and notes on accounts . . . . . . 16

Financial statements as per IFRS . . . . . . . . . . . . . . . . . . . . . 33

Additional information . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Select historical data . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Revenue segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Statutory obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Human resource valuation . . . . . . . . . . . . . . . . . . . . . . . . 68

Value-added statement . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Brand valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Economic Value-Added (EVA®) statement . . . . . . . . . . . . . . . 71

Balance Sheet including intangible assets . . . . . . . . . . . . . . 72

Intangible assets score sheet . . . . . . . . . . . . . . . . . . . . . . . 73

ValueReporting™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Management structure . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Infosys Science Foundation . . . . . . . . . . . . . . . . . . . . . . . 78

Infosys Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Report on health, safety and environment . . . . . . . . . . . . . . 80

Financial statements (unaudited) . . . . . . . . . . . . . . . . . . . . 82

Extract of audited IFRS financial statements . . . . . . . . . . . . . 91

Additional Information Infosys Annual Report 2011-12

Awards for Excellence 2011-12

“Excellence is doing ordinary things extraordinarily well.”

John W. Gardner
An educator, public official, and political reformer

Excellence is what makes an enterprise stand apart from the rest and catalyzes accelerated growth. At Infosys, the pursuit of excellence is
not only our mission but also a part of our DNA. Our global talent pool aspires to the highest standards of excellence while creating business
value for our clients. Recognizing and rewarding their achievements every year is one of the high points of our calendar. The 2011-12
Awards for Excellence were given at the organizational and regional levels. The award list is as follows :

Organizational Level

Account Management Business Transformation Program Code Champion

(Large Account) Management Mohit Shaikh
Shraman Ghosh
Excellence in account management Business transformation program for
Ashish Chandrakant Shah leading grocery retailer Development Center Management
Debasis Sahoo John Stiehler (Large)
Narayanan S. Krishna Murthy Raghavulu Hyderabad Development Center
Ramesh V. Mahabaleshwar Bhat Pune Development Center
Sanjib Kumar Narayana Bhat T.
Chandra Mohan Nandakumar Rajeev Wahi Development Center Management
Siddramesh V. Nara Sanjeev Sudhakar Pendse (Small)
Vivek Dwivedi Shahanas Mohamed
Lodz Development Center, Poland
Vincent Paul Toscano
Large Retail, CPG, Logistics, Life Sciences Trivandrum Development Center
(RCL) account Client Delight
Infosys Champion – Domain
Ammayappan Marimuthu
Corporate Business Systems modernisation
Anindya Trivedi Championing the cause of
program
Ezhil Mani A. micro–payments
Manisha Sanjay Saboo Ananthavel E. Gautam Bandyopadhyay
Rahul Bindlish Bharath Ram Chandrasekaran
Rambabu Sampangi Kaipa Manickavasagam Velayutham Infosys Champion – Technology
Sudhakar Tekkate Shenoy Neeraj Kohli Shyam Kumar Doddavula
Thiyagarajan S. Prabhu Vinod Kumar Kothapalle
Raghu Gollapudi Mobile technology champion
Rajsree Santhanam Sameer Mohamed Khan
Ravi Kumar Dikshit

Client Value Survey

Financial Services and Insurance
(FSI) Vertical

2 | Awards for Excellence 2011-12

Infosys Annual Report 2011-12 Additional Information

Innovation – Initiatives People Development Sales and Marketing – Sales

Retail, CPG, Logistics and Life Sciences Banking and Financial Services – United Management
(RCL) – Digital commerce innovation States Specialized Services Delivery Unit Global Top 10 Life Sciences account
Ajayan Pillai team opening – Digital Transformation win
Anand Mohanram Amita Awasthi Ajay S. Anand
Dinesh R. Harleen Bedi Ajit Sagar
Mohan Kumar K. Jayanthi D. Ashish Goel
Ramakrishnan Arackal Parameswaran Kiran Kumar M. R. Lohith M. Jajee
Sajikumar Mekkatt Nagendran N. Nagarajan Nathaniel Chapin
Sridhar Honnavali Sharma Rudra Kumar Nishant Thusoo
Sudhir Subramanya Holla Sundaresa Subramanian Gomathi Vallabhan Ramanan Ramakrishna
Yogita Sachdeva Kamal Biswas
Building Tomorrow’s Enterprise initiative
Ananthalakshmi V. Venkatasubramanian Project Execution Excellence Best Business Transformation deal
Charlotte Mariann Sjoberg Brandon Bichler
Renewals application development
Farhan Elias Jitendra Sindhwani
Krishnan Narayanan Amit Lohani Madhana O. R. Kumar
Manish Srivastava Ankur Bhargava Raghu Boddupally
Raja Rajeshwari Chandrasekharan Deepak N. Belavadi Ravi Kiran Kuchibhotla
Sunil Jose Gregory Jaideep Niranjan Puranik Sowmya Varadarajan Trikkur
Sushrut Shrikrishna Vaidya Jaydeep Chaudhuri Sudip Gupta
Murugan B. Supratim Choudhury
Research and development – Rohit Ranjan Singh
Tax credit in U.K. Santhosh R. Systems and Processes
Alok Jain
Retail Flash interactive dashboard A systemic platform for
Ganesh Kudva N.
Srikanth M. Ramesh Iyengar Aditi Dash competency development
Srivatsa Amar Roy Alok Ratanlal Tiwari
Sunil A. Naveen Kumar R. Amrita Deo
Debi Prasanna Patnaik Harsha Kadaba
Innovation – Products, Platforms Kaustav Bhowmik Sanjit Kumar Ghosh
and Solutions Mahesh Sanapala Saraswathi S.
Pravat Raman Pradhan Sivasubramanyam Yanambakkam
Finacle digital commerce Sashanka Sekhar Panda Usha Venkatesh Bairy
Aditya Jain Yogesh Kumar Bhatt
Production support and maintenance of
Arun Kumar Sevakule
Avnish Chetan Kalhan workforce management system for Technology Excellence
Gautam Bandyopadhyay a telecom giant
Infosys Mobile Point Of Sale –
Manikandan S. Himabindu Kondabathula
Pradeep Kumar Prakhya
Transforming retail operations
Philip Joseph
Shivaji Bal Apte Raghuram Raichooti Koshy Kottoorazhikathu Varghese
Shivakumar Kandasamy Sachin Kumar Verma Manesh Sadasivan
Sudhanshu Garg Puja Bhargava
Innovation – Thought Leadership Sumant Yerra Sameer Mohamed Khan
Sushil Ramsukh Jethaliya Shanthanu Varghese Simon
Innovation for thought
Vamsi Krishna Oruganti
leadership – Mobility Value Champions
Akshay Darbari Sales and Marketing – Brand Hitesh Sharma
Puneet Gupta Management Leadership through values
Internal Customer Delight Oracle practice marketing and excellence
Raghu Gollapudi
Mangalore Facilities team Amandeep Singh Syali
Ashok G. Gadavi
Priyanka Chandra Business Transformation Program
Rishi Raj Paul Management
Chetticha Bollachettira Biddappa
Sanjay Sahay
Dheeraj Hejmadi Re-organization program management
Steven Charles Tunley
Leo Daniel D’Silva
Varinder Verma for Infosys 3.0
Raghuram Hosmar Shetty
Ramesh Pai K. Anand J. Raghavan
Shashikala J. Narendra Sonawane
Suresh Mannam Kunnath Sateesh Seetharamiah
Akshay Kejriwal
Sharmistha Adhya
Martha McGaw
Ratnesh
Sushanth Michael Tharappan

Awards for Excellence 2011-12 | 3

Additional Information Infosys Annual Report 2011-12

Regional Level – First Prize Internal Customer Delight Application maintenance and support for
one of the biggest global pharmaceutical
Client Delight Infosys Australia New Zealand Quality – clients
Support and enablement Amit Dilip Damle
Health Maintenance Organization claims –
Ganesh Karthik Jonnalagadda Ashok H. S. Pawar
Business value add Harneet Singh Chitkara Ashutosh Saxena
Ankur Mehra Reema Gupta George John
Haresh Gobindram Khemani Shireesha Duvvuru Manish Tahiliani
Mandeep Singh Shyamali Raghunaykula Pramodini Sharad Kulkarni
Mihir Balchandra Wathare Sripriya Medisetty Prasad Wasudeo Chincholkar
Siddharth Govind Godbole Sunil Kumar Sadanand Vinayak Joshi
Suhas Ramchandra Golivadekar
Thirivikram Jayaraman InfyBubble – Infosys social networking Application support and maintenance of
Vikas Pagaria platform revenue accounting systems
Chandana Mahesh Amit Gangwani
MobileMe webmail and Anil Kumar B.
Gaurav Kumar
calendar upgrade Ramesh G. Anusheel Gupta
Avinash C. I. Shruthi Bopaiah Dhayal Prasad Subramanian
Ganesh JayaPrakash Shweta Gaur Malini B. N.
Lakshmi Sriram Sri Hari Tulasi Mallikarjun Basayya Patil
Laxminarayana K. Pai Venkateshprasanna H. M. Srinivasa N. Karanth
Manas Misra Vijaya Kumar Shanmugam Sriram Subramanian
Mithun Prem
Mysore accommodation team Electronic Data Interchange Maintenance
Rachel Sebastian
Santhakumar Murugaiyan Jairam Madhav Rao and Support
Kiran Balakrishna Hariharan Manoharan
Statutes content conversion program Naveen Kumar Prasanna Kumar Gunta
Jagathpathy Subramaniam Rahul Saxena Puneet Chowdhary
Rahul Mishra Roy Uthaiah Rakesh Devulapalli
Rajinikanth Radha Krishnan Rudrachari K. Rani Karuna Sree Jakku
Ramatchandirane Tirounavoucarassou Sagar Nemanna Aitawade Sruthi Beesabathuni
Sampath Mani Vinod Viswambharan Pillai Suresh Kumar Bijja
Subramanian K. Palanisamy Swetha Bellampally
Thirumugam Madanagopal Bangalore Computers and
Venkatasubramanian Santhana Communications Division team Construction Load Control System III –
Antony Prakash J. Phase 1 testing
Infosys Champion – Domain Atul Kumar N. J. Jaganathan Rama Sundaram
Nikhil Kumar Chandrakanth Desai Karuppasamy Thangappandy
Krishna Kumar C. Prabitha Balasubramanian Nair
Domain leadership in aerospace Pradyumn Mishra
Radhakrishna S.
development Ujjwal Mukherjee Santhakumari Murukesan
Raghavendra K. A. Vijayeendra S. Purohit Shreesha Vitthala
Unified customer framework for lending Yoganand T. D. Sukanya Krishnan Krishnan Jothi
– Business credit services Yasmin Sajidha K.
People Development
Amit Lohani Online ticketing system
Strategy, Action and Planning Surround Anand P. T.
Infosys Champion – Technology
Gaurav Kumar Arun Chandramouli
Automation champion Jayarani Jestina Stephen Deepakh Arun
Tarun Lalwani Latha A. Indranil Majumder
Raja Rajeshwari Chandrasekharan Jeevitha Navarathina Jothi S.
Technology leadership and innovation Rohit Kinnigoli Nagendra Shenoy Sajitha Begam M.
in Digital Marketing Shyam Prasad K. R. Shireesha Duvvuru
Sampath Kumar Maddali Vijay Rajan Swaminathan Natarajan
Innovation – Initiatives Vimalraj Mothiravally
Infosys chat collaboration solution
Customer engagement modeling – Project Execution Excellence Kiruthika Anandan
Innovation for a large aircraft Advantage Card Futures project Muthu Malla D.
manufacturer Nedunchezhian Sundaramoorthy
Amit Kumar Ramya Ranganathan
Amit Sharma Arpita Mishra
Chandan Mahadeo Gokhale Sandeep Patro
Prashant Pramod Patil Siddharthan Kannan Ilangovan
Neel Nandkumar Arurkar Qadeer Mohammed Abdul
Raghu Kishore Vempati Sree Kumar Ashokan
Ritesh Hemendra Shah Varda Vishal Chopra
Sathya Narayana Karnam Sandeep Singh Chauhan
Shamala Sadananda Krishniah Stuti Verma
Vidyadhar Vijay Parulekar Vinayaka Kasargod Kamath
Virendra Raghavendra Wadekar

4 | Awards for Excellence 2011-12

Infosys Annual Report 2011-12 Additional Information

Service management upgrade Systems and Processes Product & service modeling for a Tier 1
Aloke Kumar Dey telco in Asia Pacific region
Business Value Articulation Manish Juneja
Amol Dnyaneshwar Ghongade
Bhargava Chakravarthy Nimmaraju Bibhash Kumar Saha
Indranil Mukherjee Chandra Shekar Kakal Infosys Champion – Technology
Raj Joshi Haydn Silveira
Naveen Kumar L.
Satyendra Kumar Krishna Chaitanya Telikicherla
Ruchi Dhanraj Chauhan
Shanmuga Suntharam Sankaralingam Manish Singh
Sumita Srivastava
Shikha Gupta
Susanto Kumar De Multifaceted technology champion
Shishank Gupta
Ramakrishna Rao D. T. V.
Online customer portal for a leading Virendra Paliwal
Australian telecom giant Innovation – Initiatives
Contractual compliance system and
Avinash Narasandra Basavarasappa process Centralized access management system
Neelakantan Vaidyanathan
Pramod Babu V. N. Bharadwaj K. P. Ananda Krishna N.
Rathina Kumar G. Hemant Shashikant Dandegaonkar Deepak Nagesh Murdeshwar
Sanjeev Sathyamurthy Belagur Kashyapa V. Gururaj Dileep Kumar Reddy Anna Reddy
Saurabh Nayyar Maneesha Nigam Joel Sundararajan Davis
Sushil Kumar Mohammad Samidur Rahman Krishna Kumar Reddy Duddu
Vinay Upasani Naveen Kumar Sharma Thirunavukarasu Shanmugasundaram
Parshant
Sustainability / Social Utham Chengappa K. G. Internal Customer Delight
Consciousness Integrated staffing solution Delivery Risk Management team
Computers and Communications Division Jasmeen Kaur Saini Anu Cherian
sustainability initiative Ketan Sakharam More Balamukund Sripathi
Manish Kabra Bharadwaj K. P.
Balaji Srinivasa Rao Ghat
Nabarun Roy Binesh T. Narayan Nair
Chandrakanth Desai
Preetham Lakshmidevi Dhakshanamoorthy
Koushik R. N.
Rupa G. Kamat Puspamitra Mishra
Purushotham K.
Shaji Mathew Srividhya Velarcaud Srinivasan
Radhakrishna S.
Soumya Harihara Keshavamurthy Subrata Goswami
Shyam Sundar V.
Vijayeendra S. Purohit Finacle Cairo Evacuation Management
Technology Excellence
Infosys Young Indians – Nurturing social Ganesh Premsankar
Centralized Processing Centre for Nisha Ravi Prakash
entrepreneurship
Income Tax returns Satyajit Sahu
Abhishek Tiwari
Anil Baradia Yasmeen Shaikh
Debasis Konar
Ganesh Babu N.
Kaiser Masood
Madhan Raj Jeyapragasam Infosys Tools Group deployment team
Nanjappa Bottolanda Somanna Amit Gulati
Nitin S. Baravkar Supply allocation tool Kudaka V. V. Vijayakumar
Prakash Krishnan Nair Abinash Patnaik Naresh Balaram Choudhary
Pritam Kumar Sinha Arvind Koolwal Raghavendra S.
Ranjit Pasayat Subramanian Murugappan Pesalan Sandeep Chauhan
Sanjay Purohit Shashank H. N.
Shubha S. Value Champions Shilpa Gowda Srinivasa
Ravi Shah Srinivasa Sujit Rao
Sneham – Chennai Development Center
Corporate Social Responsibility wing Managing scale with delight
Regional Level – Second Prize
Anbulingom T.
Arun Padmanabhan Nayar
Arunkumar Client Delight
Devaraj Balakrishnan Krithish Aiyappa Puchimanda Kuttappa
Kalpana Swaminathan Major oilfield services client Nuthan Prasad Malanahalli Rajappa
Lilly Priyadarshini L. Amit Sreedharan Preet Kushalapa Kodira
Madhu Barathwaj Ranganathan Balaji Jayagopal Ramya Rajasekar
Selva Kumarun Rajendran Chandrasekhar Mohandas Saurabh Babasaheb Jadhav
Shankar R. Delroy Harry Coelho Tejasvi Nathan
Siddharthan Kannan Ilangovan Gopala Krishnan K. Mangalore Computers and
Sri Vidya Manoharan Rahul Bansal Communications Division team
Shashank Kumar Khetan
Dakshesh B. Modi
Tamanna Harisinghani
Dhiraj Kuckian
Infosys Champion – Domain Nikhil Sukumaran
Vinay Sudhakar Joshi Purushothama N.
Sandesh Rao S.
Sudheer Padinhare Covilakam
Vinaya Shankar Kinila

Awards for Excellence 2011-12 | 5

Additional Information Infosys Annual Report 2011-12

People Development Project Execution Excellence Health Level7 interfaces development

and maintenance project for radiology
Training and certification program for Asian Core Engine – Core banking and teleradiology systems
Apple platform implementation
Anandaraju H. N. Setty
Ajit Ravindran Nair Abhishek Tiwari Deepu George Philip
Ananthram P. S. Jitendra Hanwat Manoj Kumar Arunagiri
Brijesh B. Krishnan Rajendra Awasthi Shekhar Suresh Kanade
Laxminarayana K. Pai Shailendra Narayan Tawade Shweta Tripathi
Rajesh D. M. Shree Kishan Bagree Triveni Harsh Mohta
Satheesha B. N. Solaiyappan Nachiappan
Sharmila Dalal Sundar Rajan Rengamani Europe – Canada Siebel Customer
Vasudev Kamath Sushmitshri Babu Relationship Management – Application
support and maintenance
Applied engineering competency Web operations support
development – Business partner Praveen Kumar Pogula Amitabha Mukherjee
approach Sabir Shaik Arun Koundinya Jagarlapudi
Santhosh Kumar Somayajula Debashis Pattnaik
Niranjan Vijay Awati Sanjoy Dutta
Shivakumar Jayappa Addamani Sarvesh Kumar Rawat
Satya Narayana Chinni Srinivasa Reddy Eeda
Shweta Asuti Venkata Raghavendra Raj Sakaray
Sridhar Gatpa Sreedhar Yerra
Suresh Jampani Vijay Bhagwan Mansukhani
Sriranga Ramanuj Acharya K. N. Vijay Kumar Sambav
Sumana Y. S. Susmitha Dude
Victor Sundararaj eCommerce platform for a leading Product technical folder
Building competency on engineering aircraft manufacturer Adarsh Andani Gowda
tools across the organization Jegan Mohan Subramaniam Bharat Srinivasan
Karthik Nirmal Jagannathan Duraisamy Malaiyappan
Amit Gulati Jyotsna Rajaram Bhat
Balaji Ayyadurai Kartikeya Bisht
Mugunthan Sridharan Prasenjit Ghosh
Kudaka V. V. Vijayakumar Rahul Goyal
Mallika Singh Muralikrishnan Alandur Sankaralingam
Natraj Sundaramoorthy Reetika Anand
Mursied Khan Uday Kumar Harohalli Krishna Murthy
Naresh Balaram Choudhary Vijay Aravamudhan
Pallavi Bomma Vinoth M. P. Sales and Marketing division – An
Shilpa Gowda Srinivasa Graphical design tool information technology client
Connect architecture Arijit Poddar Devender Raju Thangella
Debakalyan Swain Giridhar Yeshaswi Chillara
Jagdish Bantval Bhandarkar Mucham Macha
Kiran N. G. Mithun Das
Rabindra Kumar Sahu Naveen Dagani
Pradeep Kumar M. Nimesh Kocheta
Sangeetha S. Soubhagya Ranjan Barick
Subodha Kumar Bal Ravi Kanth Gundu
Sanjita Bohidar Ravindra Shivaji Mohite
Shreekantha VishnuMoorthi Ayya Sudeep Mukherjee
Sukomal Paul Sireesha Tummala
Shyam Kumar Doddavula
Srinivas J. Maintenance and support of Finance,
Quality – Support enablement program for HR, Payroll and Positive Train Control
a leading banking group applications
Deepak Ilango
Ganesh Karthik Jonnalagadda Jermey Bala Krishnan
Harneet Singh Chitkara Karthick A.
Reema Gupta Manu Cherian George
Shireesha Duvvuru Pankaj Malik
Shyamali Raghunaykula Shanmuga Sundaram Rajasubramanian
Sripriya Medisetty Srivatsan Melpakkam Parthasarathy
Sunil Kumar Vijayalakshmi Harikrishnan

6 | Awards for Excellence 2011-12

Infosys Annual Report 2011-12 Additional Information

Sustainability / Social Consciousness Team Retail, CPG, Logistics, Life Infosys Tools Group systems
Sciences (RCL) – Reach Bhubaneswar and processes
Jaipur talent development program Development Center Amit Gulati
Abhishek Ramanand Chatterjee Mallika Singh
Amit Kumar Agarwal
Amit Nagpal Naresh Balaram Choudhary
Anurag Tripathy
Niya Mohan P. Pallavi Bomma
Hemangini Raithaththa
Pooja Srinivas Prabhat Ranjan Kumar
Laxmi Agrawal
Prakriti Massey Raghavendra S.
Nitiv Nigam
Savio Charles Freitas Shilpa Gowda Srinivasa
Rajni Keshri
Shirin Balkishan Kabara Srinivasa Sujit Rao
Ruchi Nandita
Shweta Raghunath A.
Sambit Bhattacharjee
Vaishali Sunil Amrute
Smita Pati Technology Excellence
Vijay John Michael Colaco
Sunit Kothari Social Xperience platform for a
PRERANA – Making a difference leading technology firm
Systems and Processes
Dheeraj Hejmadi Bhavani Sireesha Gunda
Dinha Pramila D’Silva Business results Impact at Infosys Bhavin Jayantilal Raichura
Ganapathi Bhat Balike Technologies – Accelerating change in Naveen Dagani
Gopalakrishna Sagri Nayak Building Tomorrow's Enterprise Prabhu Shankar J.
Gopikrishnan Konnanath Anoop Kumar Qi Fu
Mrugesh Ganesh Poojary Arul Rosaline Pradipa S. Ramesh Babu Emarajan
Niveditha Shetty Balakrishnan Madhavan Nair Umesh Kumar Lakkaraju
Sarfras Mahamood S. L. P. Govindraya Trasi Shenoy Venkata Appaji Sirangi
Vasudev Kamath Hareshkumar Mahadevrao Amre
Vijaya Kumar A. Open Source drug discovery
Prakash Viswanathan
Rahul Madhukar Ingle Priya Thampi
Sustainable solid waste management Santhosh A.
Rama Mohan Venkata Kadayinti
Digu Aruchamy
Hitesh Sharma Do more with less Value Champions
Naveen Chinthakunta Prabhudeva Amit Sahakundu Divaahar Muthuswamy
Ramesh K. N. Govindaraju Thangavelu Jaya Kumar Inbaraj
Sudhir Hulikunte Sundararam Kathiresan T.
Team Akshaya Patra – ‘Buy a Meal’ and Kiran Bhojaraju
‘Sponsor a Meal ‘ Muralikrishna K.
Vijaya Janardhanan
Kankanala Sundeep Reddy
Rama Murthy Prabhala
Rambabu Sampangi Kaipa

Awards for Excellence 2011-12 | 7

Additional Information Infosys Annual Report 2011-12

Ratio analysis
Ratios 2012 2011 2010
Financial performance
Export revenue / total revenue (%) 97.63 97.66 98.73
Domestic revenue / total revenue (%) 2.37 2.34 1.27
Software development expenses / total revenue (%) 57.06 56.20 54.68
Gross profit / total revenue (%) 42.94 43.80 45.32
Selling and marketing expenses / total revenue (%) 4.65 4.80 4.61
General and administration expenses / total revenue (%) 6.10 5.85 5.90
Selling, General and Administrative (SG&A) expenses / total revenue (%) 10.75 10.65 10.51
Aggregate employee costs / total revenue (%) 49.51 49.08 48.96
Operating profit (PBIDTA) / total revenue (%) 32.19 33.15 34.82
Depreciation and amortization / total revenue (%) 2.54 2.92 3.82
Operating profit after depreciation and interest / total revenue (%) 29.65 30.23 31.00
Other income / total revenue (%) 5.85 4.52 4.30
Provision for investments / total revenue (%) – – (0.04)
Profit before tax / total revenue (%) 35.50 34.75 35.35
Tax / total revenue (%) 9.95 9.37 8.12
Effective tax rate – Tax / PBT (%) 28.03 26.96 22.98
Profit after tax (1) / total revenue (%) 25.55 25.38 27.22
Balance Sheet
Debt – equity ratio – – –
Current ratio 4.72 5.05 4.46
Days Sales Outstanding (DSO) 63 61 56
Cash and equivalents / total assets (%) (2) 55.56 52.97 66.48
Cash and equivalents / total revenue (%) (2) 63.67 60.21 70.03
Capital expenditure / total revenue (%) 4.15 4.54 2.75
Operating cash flows / total revenue (%) 19.05 16.82 27.80
Depreciation / average gross block (%) (3) 12.34 11.90 13.17
Technology investment / total revenue (%) 2.27 2.25 2.12
Returns
PAT (2) / average net worth (%) 29.44 27.69 28.89
ROCE (PBIT / average capital employed) (%) 40.87 37.58 37.25
Return on average invested capital (%) (1)(2) 71.29 67.73 68.75
Capital output ratio 1.05 1.08 1.05
Invested capital output ratio (2) 3.16 3.01 2.81
Value added / total income (%) 82.71 82.99 84.45
Enterprise-value / total revenue (x) 4.63 6.73 6.40
Dividend / adjusted public offer price (%) (4) 4,985 4,042 3,368
Market price / adjusted public offer price (%) 3,86,196 4,36,723 3,52,465
Growth
Overseas revenue (%) 23.08 18.78 4.33
Total revenue (%) 23.12 20.08 4.32
Operating profit before depreciation (%) 19.57 14.32 6.57
Net profit (%) (1) 23.95 11.95 (1.10)
Net profit after exceptional item (%) 31.46 11.03 (0.27)
Basic EPS (%) (1) 23.88 11.85 (1.26)
Basic EPS after exceptional item (%) 31.40 10.91 (0.42)
Per share
Basic EPS (`) (1) 139.07 112.26 100.37
Basic EPS after exceptional item (`) 147.51 112.26 101.22
Basic cash EPS (`) (1) 152.90 125.14 114.46
Basic cash EPS after exceptional item (`) 161.34 125.14 115.30
Price / earnings, end of year (1) 20.61 28.87 26.06
Price / cash earnings, end of year (1) 18.75 25.90 22.85
PE / EPS growth (1) 0.86 2.44 (20.68)
Book value (`) 518.21 426.73 384.01
Price / book value, end of year 5.53 7.60 6.81
Dividend per share (par value of ` 5/- each) (4) 37.00 30.00 25.00
Dividend (%) (4) 740 600 500
Dividend payout (%) (4)(5) 29.70 29.34 26.93
Market capitalization / total revenue, end of year (x) 5.27 7.33 7.10
Notes : The ratio calculations are based on standalone Indian GAAP financial statements.
(1)
Before exceptional item
(2)
Investments in liquid mutual funds and certificates of deposit have been considered as cash and cash equivalents for the purpose of the above ratio analysis.
(3)
Gross block excludes investment in land
(4)
Excludes special dividend for fiscal 2012 and 2011
(5)
Calculated as a % of the consolidated profits of the Infosys group

8 | Ratio analysis
Infosys Annual Report 2011-12 Additional Information

Ratio analysis

Operating profit (PBIDTA) / Profit (1) / total revenue (%) ROCE (PBIT / average
total revenue (%) capital employed) (%)

32.19

25.55

40.87
34.82

33.15

27.22

25.38

37.25

37.58
2010 2011 2012 2010 2011 2012 2010 2011 2012

Cash and equivalents (2) / Capital output ratio (x) Value added /
total assets (%) total income (%)
55.56

1.05

82.71
1.05

1.08
66.48

52.97

84.45

82.99
2010 2011 2012 2010 2011 2012 2010 2011 2012

Basic EPS (`) (1) Dividend per share (`) (3) Price / earnings (1)
end of year (x)
139.07

37.00

20.61
25.00

30.00

26.06

28.87
100.37

112.26

2010 2011 2012 2010 2011 2012

2010 2011 2012

(1)
Before exceptional item
(2)
Investments in liquid mutual funds and certificates of deposit have been considered as cash and cash equivalents for the purpose of the above ratio analysis.
(3)
Excludes special dividend for fiscal 2012 and 2011

Ratio analysis | 9
Additional Information Infosys Annual Report 2011-12

Independent auditors' report

To the Members of Infosys Limited
(formerly Infosys Technologies Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of Infosys Limited (‘the Company’) which comprise the Balance Sheet as at 31 March 2012,
the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 (‘the Act’). This responsibility includes the design, implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the
Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 (‘the Order’), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that :
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose
of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination
of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books
of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956; and
f. on the basis of written representations received from the directors as on March 31, 2012, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2012, from being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.

for B S R & Co.

Chartered Accountants
Firm's registration No. 101248W

Natrajh Ramakrishna
Bangalore Partner
13 April, 2012 Membership No. 32815

10 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Annexure to the auditors' report

The Annexure referred to in our report to the members of Infosys Limited (‘the Company’) (formerly Infosys Technologies Limited) for the year
ended March 31, 2012. We report that :
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner
over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard
to the size of the Company and the nature of its assets.
(c) Fixed assets disposed of during the year were not substantial, and therefore, do not affect the going concern assumption.
(ii) The Company is a service company, primarily rendering information technology services. Accordingly, it does not hold any physical
inventories. Thus, paragraph 4(ii) of the Order is not applicable.
(iii) (a) The Company has granted a loan to a body corporate covered in the register maintained under Section 301 of the Companies Act,
1956 (‘the Act’). The maximum amount outstanding during the year was ` 26,95,65,993 and the year-end balance of such loan
amounted to ` 12,39,007. Other than the above, the Company has not granted any loans, secured or unsecured, to companies,
firms or parties covered in the register maintained under Section 301 of the Act.
(b) In our opinion, the rate of interest and other terms and conditions on which the loan has been granted to the body corporate listed
in the register maintained under Section 301 of the Act are not, prima facie, prejudicial to the interest of the Company.
(c) In the case of the loan granted to the body corporate listed in the register maintained under Section 301 of the Act, the borrower
has been regular in the payment of the interest as stipulated. The terms of arrangement do not stipulate any repayment schedule
and the loan is repayable on demand. Accordingly, paragraph 4(iii)(c) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
(d) There are no overdue amounts of more than ` 1 lakh in respect of the loan granted to a body corporate listed in the register maintained
under Section 301 of the Act.
(e) The Company has not taken any loans, secured or unsecured from companies, firms or parties covered in the register maintained
under Section 301 of the Act. Accordingly, paragraphs 4(iii)(e) to 4(iii)(g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and sale of
services. The activities of the Company do not involve purchase of inventory and the sale of goods. We have not observed any major
weakness in the internal control system during the course of the audit.
(v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred
to in Section 301 of the Act have been entered in the register required to be maintained under that section.
(b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts
and arrangements referred to in (v)(a) above and exceeding the value of ` 5 lakh with any party during the year have been made at
prices which are reasonable having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.
(viii) The Central Government of India has not prescribed the maintenance of cost records under Section 209(1)(d) of the Act for any of
the services rendered by the Company.
(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues have been regularly
deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any
dues on account of Employees' State Insurance, Customs duty and Excise duty.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues were in arrears as
at March 31, 2012 for a period of more than six months from the date they became payable.

Standalone financial statements | 11

Additional Information Infosys Annual Report 2011-12

(b) According to the information and explanations given to us, there are no material dues of Wealth tax and Cess which have not been
deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to
us, the following dues of Income tax, Sales tax, and Service tax, have not been deposited by the Company on account of disputes :
Name of the Nature of dues Amount (in `) Period to which the amount Forum where dispute is
statute relates pending
Income Tax Interest on Income tax 50,84,704 Assessment year 2006-2007 Commissioner of Income
Act, 1961 demanded Tax(CIT)(Appeals), Bangalore
Income Tax Demand under Section (1)
7,30,25,295 Assessment year 2009-2010 CIT(Appeals), Bangalore
Act, 1961 156
Service tax Service tax demanded (1)
5,75,63,973 July 2004 to October 2005 CESTAT – Bangalore
Service tax Service tax demanded (1)
2,57,84,864 January 2005 to March 2009 CESTAT – Bangalore
Service tax Service tax and penalty 23,15,20,178 February 2007 to March 2009 CESTAT – Bangalore
demanded
Service tax Service tax demanded 4,19,72,658 April 2009 to March 2010 Commissioner, Bangalore
APVAT Act, Inter-state sales demanded 4,17,650 April 2006 to March 2007 Sales tax Appellate Tribunal,
2005 Andhra Pradesh
APVAT Act, Sales tax demanded (1)
31,12,450 April 2007 to March 2008 High Court of Andhra Pradesh
2005
KVAT Act, Sales tax, interest and (1) (2)
24,53,43,982 April 2005 to March 2009 High Court of Karnataka
2003 penalty demanded
MVAT Act, Excess refund along with 13,20,455 January 2006 to December
(1)
Deputy commissioner,
2002 interest demanded. 2007 Sales Tax, Pune
CENVAT Irregular availment of (1)
11,14,13,495 October 2004 to March 2009 CESTAT, Bangalore
Credit Rules, CENVAT credit
2004
(1)
A stay order has been received against the amount disputed and not deposited.
(2)
Net of amounts paid under protest.

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(xi) The Company did not have any outstanding dues to any financial institution, banks or debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund / nidhi / mutual benefit
fund / society.
(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures
and other investments.
(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) The Company did not have any term loans outstanding during the year.
(xvii) The Company has not raised any funds on short-term basis.
(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money by public issues during the year.
(xxi) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported
during the course of our audit.

for B S R & Co.

Chartered Accountants
Firm's registration No. 101248W

Natrajh Ramakrishna
Bangalore Partner
13 April, 2012 Membership No. 32815

12 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Balance Sheet
in r crore
Particulars Note As at March 31,
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
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1&2
Note : The notes referred to above are an integral part of the Balance Sheet.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

Standalone financial statements | 13

Additional Information Infosys Annual Report 2011-12

Statement of Profit and Loss

in r crore, except per share data
Particulars Note For the year ended March 31,
2012 2011
Income from software services and products 2.16 31,254 25,385
Other income 2.17 1,829 1,147
Total revenue 33,083 26,532
Expenses
Employee benefit expenses 2.18 15,473 12,459
Cost of technical sub-contractors 2.18 2,483 2,044
Travel expenses 2.18 944 771
Cost of software packages and others 2.18 625 459
Communication expenses 2.18 203 170
Professional charges 437 299
Depreciation and amortization expenses 2.8 794 740
Other expenses 2.18 1,028 769
Total expenses 21,987 17,711
PROFIT BEFORE TAX AND EXCEPTIONAL ITEM 11,096 8,821
Tax expense
Current tax 2.19 3,053 2,521
Deferred tax 2.19 57 (143)
PROFIT AFTER TAX BEFORE EXCEPTIONAL ITEM 7,986 6,443
Dividend income, net of taxes 2.34 484 –
PROFIT AFTER TAX AND EXCEPTIONAL ITEM 8,470 6,443
EARNINGS PER EQUITY SHARE
Equity shares of par value ` 5/- each
Before exceptional item
Basic 139.07 112.26
Diluted 139.06 112.22
After exceptional item
Basic 147.51 112.26
Diluted 147.50 112.22
Number of shares used in computing earnings per share 2.31
Basic 57,41,99,094 57,40,13,650
Diluted 57,42,29,742 57,42,01,958
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1&2
Note : The notes referred to above are an integral part of the Statement of Profit and Loss.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

14 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Cash Flow Statement

in r crore
Particulars Note For the year ended March 31,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 11,096 8,821
Adjustments to reconcile profit before tax to cash provided by operating activities
Depreciation and amortization expenses 794 740
Interest and dividend income (1,720) (1,086)
Profit of sale of tangible assets 2.35.5 (2) –
Effect of exchange differences on translation of assets and liabilities 19 (6)
Effect of exchange differences on translation of foreign currency cash and cash equivalents (60) (5)
Changes in assets and liabilities
Trade receivables 2.35.1 (1,180) (968)
Loans and advances and other assets 2.35.2 (819) (704)
Liabilities and provisions 2.35.3 671 234
8,799 7,026
Income taxes paid 2.35.4 (2,844) (2,756)
NET CASH GENERATED BY OPERATING ACTIVITIES 5,955 4,270
CASH FLOWS FROM INVESTING ACTIVITIES
Payment towards capital expenditure 2.35.5 (1,296) (1,152)
Investments in subsidiaries 2.35.6 (104) (77)
Disposal of other investments 2.35.7 (222) 3,378
Interest and dividend received 2.35.8 1,703 1,086
CASH FLOWS FROM INVESTING ACTIVITIES BEFORE EXCEPTIONAL ITEM 81 3,235
Dividend income, net of taxes 2.34 484 –
NET CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES 565 3,235
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital on exercise of stock options 6 24
Repayment of loan given to subsidiary 2.35.9 35 14
Dividends paid including residual dividend (2,012) (3,156)
Dividend tax paid (327) (524)
NET CASH USED IN FINANCING ACTIVITIES (2,298) (3,642)
Effect of exchange differences on translation of foreign currency cash and cash equivalents 60 5
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 4,282 3,868
Add : Bank balances taken over from Infosys Consulting Inc., U.S. (Refer to Note 2.25) 110 –
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 15,165 11,297
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 19,557 15,165
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1&2
Note : The notes referred to above are an integral part of the Cash Flow Statement.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

Standalone financial statements | 15

Additional Information Infosys Annual Report 2011-12

Significant accounting policies and notes on accounts

Company overview 1.3. Revenue recognition
Infosys Limited (‘Infosys’ or ‘the Company’), along with its Revenue is primarily derived from software development and related
majority-owned and controlled subsidiary, Infosys BPO Limited services and from the licensing of software products. Arrangements
(‘Infosys BPO’) and wholly-owned and controlled subsidiaries, with customers for software development and related services are either
Infosys Technologies (Australia) Pty. Limited (‘Infosys Australia’), on a fixed-price, fixed-timeframe or on a time-and-material basis.
Infosys Technologies (China) Co. Limited (‘Infosys China’), Revenue on time-and-material contracts are recognized as the
Infosys Consulting India Limited (‘Infosys Consulting India’), related services are performed and revenue from the end of the
Infosys Technologies S. de R. L. de C. V. (‘Infosys Mexico’), last billing to the Balance Sheet date is recognized as unbilled
Infosys Technologies (Sweden) AB (‘Infosys Sweden’), revenues. Revenue from fixed-price and fixed-timeframe contracts,
Infosys Tecnologia do Brasil Ltda (‘Infosys Brasil’), Infosys Public where there is no uncertainty as to measurement or collectability
Services Inc., U.S. (‘Infosys Public Services’) and Infosys Technologies of consideration, is recognized based upon the percentage of
(Shanghai) Co. Limited (‘Infosys Shanghai’), is a leading global completion method. When there is uncertainty as to measurement
technology services corporation. The Company provides business or ultimate collectability, revenue recognition is postponed until
consulting, technology, engineering and outsourcing services to help such uncertainty is resolved. Cost and earnings in excess of billings
clients build tomorrow's enterprise. In addition, the Company offers are classified as unbilled revenue, while billings in excess of cost
software products for the banking industry. and earnings is classified as unearned revenue. Provision for
estimated losses, if any, on uncompleted contracts are recorded
1. Significant accounting policies in the period in which such losses become probable, based on the
current estimates.
1.1. Basis of preparation of financial statements
The annual technical services revenue and revenue from fixed-price
These financial statements are prepared in accordance with Indian maintenance contracts are recognized ratably over the period in
Generally Accepted Accounting Principles (GAAP) under the historical which services are rendered. Revenue from the sale of user licenses
cost convention on the accrual basis except for certain financial for software applications is recognized on transfer of the title in the
instruments which are measured at fair values. GAAP comprises user license, except in case of multiple element contracts, which
mandatory accounting standards as prescribed by the Companies require significant implementation services, where revenue for the
(Accounting Standards) Rules, 2006, the provisions of the Companies entire arrangement is recognized over the implementation period
Act, 1956 and guidelines issued by the Securities and Exchange Board based upon the percentage-of-completion method. Revenue from
of India (SEBI). Accounting policies have been consistently applied client training, support and other services arising due to the sale of
except where a newly issued accounting standard is initially adopted software products is recognized as the related services are performed.
or a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use. The Company accounts for volume discounts and pricing incentives
to customers as a reduction of revenue based on the ratable allocation
1.2. Use of estimates of the discount / incentive amount to each of the underlying revenue
The preparation of the financial statements in conformity with GAAP transactions that result in progress by the customer towards earning
requires the Management to make estimates and assumptions that the discount / incentive. Also, when the level of discount varies with
affect the reported balances of assets and liabilities and disclosures increases in levels of revenue transactions, the Company recognizes
relating to contingent liabilities as at the date of the financial the liability based on its estimate of the customer's future purchases.
statements and reported amounts of income and expenses during the If it is probable that the criteria for the discount will not be met, or
period. Examples of such estimates include computation of percentage if the amount thereof cannot be estimated reliably, then discount is
of completion which requires the Company to estimate the efforts not recognized until the payment is probable and the amount can be
expended to date as a proportion of the total efforts to be expended, estimated reliably. The Company recognizes changes in the estimated
provisions for doubtful debts, future obligations under employee amount of obligations for discounts using a cumulative catch-up
retirement benefit plans, income taxes, post-sales customer support approach. The discounts are passed on to the customer either as direct
and the useful lives of fixed assets and intangible assets. payments or as a reduction of payments due from the customer.
Accounting estimates could change from period to period. Actual results The Company presents revenues net of value-added taxes in its
could differ from those estimates. Appropriate changes in estimates are Statement of Profit and Loss.
made as the Management becomes aware of changes in circumstances Profit on sale of investments is recorded on transfer of title from the
surrounding the estimates. Changes in estimates are reflected in the Company and is determined as the difference between the sale price
financial statements in the period in which changes are made and, if and carrying value of the investment. Lease rentals are recognized
material, their effects are disclosed in the notes to the financial statements. ratably on a straight-line basis over the lease term. Interest is recognized
The Management periodically assesses using, external and internal using the time-proportion method, based on rates implicit in the
sources, whether there is an indication that an asset may be impaired. transaction. Dividend income is recognized when the Company's right
An impairment loss is recognized wherever the carrying value of an asset to receive dividend is established.
exceeds its recoverable amount. The recoverable amount is higher of the 1.4. Provisions and contingent liabilities
asset's net selling price and value in use, which means the present value
of future cash flows expected to arise from the continuing use of the asset A provision is recognized if, as a result of a past event, the Company
and its eventual disposal. An impairment loss for an asset is reversed if, has a present legal obligation that can be estimated reliably, and it
and only if, the reversal can be related objectively to an event occurring is probable that an outflow of economic benefits will be required to
after the impairment loss was recognized. The carrying amount of an settle the obligation. Provisions are determined by the best estimate
asset is increased to its revised recoverable amount, provided that this of the outflow of economic benefits required to settle the obligation
amount does not exceed the carrying amount that would have been at the reporting date.
determined (net of any accumulated amortization or depreciation) had
no impairment loss been recognized for the asset in prior years.

16 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Where no reliable estimate can be made, a disclosure is made as The Company fully contributes all ascertained liabilities to the
contingent liability. A disclosure for a contingent liability is also made Infosys Limited Employees' Gratuity Fund Trust (‘the Trust’).
when there is a possible obligation or a present obligation that may, Trustees administer contributions made to the Trust and invest in
but probably will not, require an outflow of resources. Where there a scheme with Life Insurance Corporation as permitted by the law.
is a possible obligation or a present obligation in respect of which the The Company recognizes the net obligation of the Gratuity Plan in the
likelihood of outflow of resources is remote, no provision or disclosure Balance Sheet as an asset or liability, respectively in accordance with
is made. Accounting Standard (AS) 15, ‘Employee Benefits’. The Company's
overall expected long-term rate-of-return on assets has been
1.5. Post-sales client support and warranties determined based on consideration of available market information,
The Company provides its clients with a fixed-period warranty for current provisions of Indian law specifying the instruments in which
corrections of errors and telephone support on all its fixed-price, investments can be made, and historical returns. The discount rate
fixed-timeframe contracts. Costs associated with such support services is based on the government securities yield. Actuarial gains and
are accrued at the time when related revenues are recorded and losses arising from experience adjustments and changes in actuarial
included in cost of sales. The Company estimates such costs based assumptions are recognized in the Statement of Profit and Loss in the
on historical experience and the estimates are reviewed annually for period in which they arise.
any material changes in assumptions.
Superannuation
1.6. Onerous contracts Certain employees of Infosys are also participants in the superannuation
Provisions for onerous contracts are recognized when the expected plan (‘the Plan’) which is a defined contribution plan. The Company
benefits to be derived by the Company from a contract are lower than the has no obligations to the Plan beyond its monthly contributions.
unavoidable costs of meeting the future obligations under the contract.
Provident fund
The provision is measured at lower of the expected cost of terminating
the contract and the expected net cost of fulfilling the contract. Eligible employees receive benefits from a provident fund, which is
a defined benefit plan. Both the employee and the Company make
1.7. Fixed assets, intangible assets and capital monthly contributions to the provident fund plan equal to a specified
work-in-progress percentage of the covered employee's salary. The Company contributes
a part of the contributions to the Infosys Limited Employees' Provident
Fixed assets are stated at cost, less accumulated depreciation and
Fund Trust. The Trust invests in specific designated instruments as
impairment, if any. Direct costs are capitalized until fixed assets are
permitted by Indian law. The remaining portion is contributed to
ready for use. Capital work-in-progress comprises of the cost of fixed
the government administered pension fund. The rate at which the
assets that are not yet ready for their intended use at the reporting
annual interest is payable to the beneficiaries by the Trust is being
date. Intangible assets are recorded at the consideration paid for
administered by the government. The Company has an obligation
acquisition of such assets and are carried at cost less accumulated
to make good the shortfall, if any, between the return from the
amortization and impairment.
investments of the Trust and the notified interest rate.
1.8. Depreciation and amortization Compensated absences
Depreciation on fixed assets is provided on the straight-line method over
The employees of the Company are entitled to compensated absences
the useful lives of assets estimated by the Management. Depreciation
which are both accumulating and non-accumulating in nature.
for assets purchased / sold during a period is proportionately charged.
The expected cost of accumulating compensated absences is
Individual low cost assets (acquired for ` 5,000/- or less) are depreciated determined by actuarial valuation based on the additional amount
over a period of one year from the date of acquisition. Intangible assets expected to be paid as a result of the unused entitlement that has
are amortized over their respective individual estimated useful lives on accumulated at the Balance Sheet date. Expense on non-accumulating
a straight-line basis, commencing from the date the asset is available compensated absences is recognized in the period in which the
to the Company for its use. The Management estimates the useful lives absences occur.
for the other fixed assets as follows :
Buildings 15 years
1.10. Research and development
Plant and machinery 5 years Research costs are expensed as incurred. Software product development
Office equipment 5 years costs are expensed as incurred unless technical and commercial
Computer equipment 2-5 years feasibility of the project is demonstrated, future economic benefits are
Furniture and fixtures 5 years probable, the Company has an intention and ability to complete and
Vehicles 5 years use or sell the software and the costs can be measured reliably.

Depreciation methods, useful lives and residual values are reviewed 1.11. Foreign currency transactions
at each reporting date. Foreign-currency denominated monetary assets and liabilities are
translated at exchange rates in effect at the Balance Sheet date. The gains
1.9. Retirement benefits to employees or losses resulting from such translations are included in the Statement
Gratuity of Profit and Loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair value are
In accordance with the Payment of Gratuity Act, 1972, the Company
translated at the exchange rate prevalent at the date when the fair value
provides for gratuity, a defined benefit retirement plan (‘the Gratuity
was determined. Non-monetary assets and non-monetary liabilities
Plan’) covering eligible employees. The Gratuity Plan provides a
denominated in a foreign currency and measured at historical cost
lump-sum payment to vested employees at retirement, death,
are translated at the exchange rate prevalent at the date of transaction.
incapacitation or termination of employment, of an amount based
on the respective employee's salary and the tenure of employment Revenue, expense and cash-flow items denominated in foreign
with the Company. currencies are translated using the exchange rate in effect on the date
of the transaction. Transaction gains or losses realized upon settlement
Liabilities with regard to the Gratuity Plan are determined by actuarial
of foreign currency transactions are included in determining net profit
valuation at each Balance Sheet date using the projected unit credit method.
for the period in which the transaction is settled.

Standalone financial statements | 17

Additional Information Infosys Annual Report 2011-12

1.12. Forward and options contracts in foreign 1.14. Earnings per share
currencies Basic earnings per share is computed by dividing the net profit after
The Company uses foreign exchange forward and options contracts to tax by the weighted average number of equity shares outstanding
hedge its exposure to movements in foreign exchange rates. The use during the period. Diluted earnings per share is computed by dividing
of these foreign exchange forward and options contracts reduce the the profit after tax by the weighted average number of equity shares
risk or cost to the Company and the Company does not use those for considered for deriving basic earnings per share and also the weighted
trading or speculation purposes. average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. The diluted potential
Effective April 1, 2008, the Company adopted AS 30, ‘Financial
equity shares are adjusted for the proceeds receivable had the shares
Instruments: Recognition and Measurement', to the extent that the
been actually issued at fair value which is the average market value of
adoption did not conflict with existing accounting standards and
the outstanding shares. Dilutive potential equity shares are deemed
other authoritative pronouncements of the Company Law and other
converted as of the beginning of the period, unless issued at a later
regulatory requirements.
date. Dilutive potential equity shares are determined independently
Forward and options contracts are fair valued at each reporting date. for each period presented.
The resultant gain or loss from these transactions are recognized in
The number of shares and potentially dilutive equity shares are
the Statement of Profit and Loss. The Company records the gain or
adjusted retrospectively for all periods presented for any share splits
loss on effective hedges, if any, in the foreign currency fluctuation
and bonus shares issues including for changes effected prior to the
reserve until the transactions are complete. On completion, the gain
approval of the financial statements by the Board of Directors.
or loss is transferred to the Statement of Profit and Loss of that period.
To designate a forward or options contract as an effective hedge, 1.15. Investments
the Management objectively evaluates and evidences with appropriate
Trade investments are the investments made to enhance the Company's
supporting documents at the inception of each contract whether the
business interests. Investments are either classified as current or
contract is effective in achieving offsetting cash flows attributable to
long-term based on the Management's intention at the time of
the hedged risk. In the absence of a designation as effective hedge,
purchase. Current investments are carried at the lower of cost and fair
a gain or loss is recognized in the Statement of Profit and Loss.
value of each investment individually. Cost for overseas investments
Currently, hedges undertaken by the Company are all ineffective in
comprises the Indian rupee value of the consideration paid for the
nature and the resultant gain or loss consequent to fair valuation is
investment translated at the exchange rate prevalent at the date of
recognized in the Statement of Profit and Loss at each reporting date.
investment. Long-term investments are carried at cost less provisions
1.13. Income Taxes recorded to recognize any decline, other than temporary, in the
carrying value of each investment.
Income Taxes are accrued in the same period that the related revenue
and expenses arise. A provision is made for income tax annually, 1.16. Cash and cash equivalents
based on the tax liability computed, after considering tax allowances
Cash and cash equivalents comprise cash and cash on deposit with
and exemptions. Provisions are recorded when it is estimated that a
banks and corporations. The Company considers all highly liquid
liability due to disallowances or other matters is probable. Minimum
investments with a remaining maturity at the date of purchase of three
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
months or less and that are readily convertible to known amounts of
rise to future economic benefits in the form of tax credit against future
cash to be cash equivalents.
income tax liability, is recognized as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax 1.17. Cash Flow Statement
after the tax holiday period and the resultant asset can be measured
Cash flows are reported using the indirect method, whereby profit
reliably. The Company offsets, on a year-on-year basis, the current tax
before tax is adjusted for the effects of transactions of a non-cash
assets and liabilities, where it has a legally enforceable right and where
nature, any deferrals or accruals of past or future operating cash
it intends to settle such assets and liabilities on a net basis.
receipts or payments and item of income or expenses associated with
The differences that result between the profit considered for income investing or financing cash flows. The cash flows from operating,
taxes and the profit as per the financial statements are identified, and investing and financing activities of the Company are segregated.
thereafter a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one 1.18. Leases
accounting period and reverse in another, based on the tax effect of the Lease under which the Company assumes substantially all the risks
aggregate amount of timing difference. The tax effect is calculated on and rewards of ownership are classified as finance leases. Such assets
the accumulated timing differences at the end of an accounting period acquired are capitalized at fair value of the asset or present value of
based on enacted or substantively enacted regulations. Deferred tax the minimum lease payments at the inception of the lease, whichever
assets in situation where unabsorbed depreciation and carry forward is lower. Lease payments under operating leases are recognized as an
business loss exists, are recognized only if there is virtual certainty expense on a straight-line basis in the Statement of Profit and Loss
supported by convincing evidence that sufficient future taxable over the lease term.
income will be available against which such deferred tax asset can be
realized. Deferred tax assets, other than in situation of unabsorbed
depreciation and carry forward business loss, are recognized
2. Notes on accounts for the year ended
only if there is reasonable certainty that they will be realized. March 31, 2012
Deferred tax assets are reviewed for the appropriateness of their Amounts in the financial statements are presented in ` crore, except
respective carrying values at each reporting date. Deferred tax assets for per share data and as otherwise stated. Certain amounts that are
and deferred tax liabilities have been offset wherever the Company has required to be disclosed and do not appear due to rounding off are
a legally enforceable right to set off current tax assets against current detailed in Note 2.37. All exact amounts are stated with the suffix ‘/-’.
tax liabilities and where the deferred tax assets and deferred tax One crore equals 10 million.
liabilities relate to income taxes levied by the same taxation authority.
The previous period figures have been re-grouped / re-classified,
Tax benefits of deductions earned on exercise of employee share
wherever necessary to conform to the current period presentation.
options in excess of compensation charged to the Statement of Profit
and Loss are credited to the share premium account.

18 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.1. Share capital Stock option plans

in ` crore, except as otherwise stated
The Company has two Stock Option Plans
Particulars As at March 31,
2012 2011 1998 Stock Option Plan ('the 1998 Plan')
Authorized The 1998 Plan was approved by the Board of Directors in December
Equity shares, ` 5/- par value 1997 and by the shareholders in January 1998, and is for issue
60,00,00,000 (60,00,00,000) equity of 1,17,60,000 American Depositary Shares (ADS) representing
shares 300 300 1,17,60,000 equity shares. All options under the 1998 Plan are
Issued, Subscribed and Paid-Up exercisable for ADS representing equity shares. A compensation
Equity shares, ` 5/- par value (1) 287 287 committee comprising independent members of the Board of Directors
57,42,30,001 (57,41,51,559) equity administers the 1998 Plan. All options had been granted at 100%
shares fully paid-up of fair market value. The 1998 Plan lapsed on January 6, 2008, and
consequently no further shares will be issued to employees under
[Of the above, 53,53,35,478
this plan.
(53,53,35,478) equity shares, fully
paid-up have been issued as bonus 1999 Stock Option Plan ('the 1999 Plan')
shares by capitalization of the general
In fiscal 2000, the Company instituted the 1999 Plan. The shareholders
reserve.]
and the Board of Directors approved the plan in September 1999, which
287 287
provides for the issue of 5,28,00,000 equity shares to the employees.
Note : Forfeited shares amounted to ` 1,500/- (` 1,500/-) The compensation committee administers the 1999 Plan. Options were
(1)
Refer to Note 2.31 for details of basic and diluted shares
issued to employees at an exercise price that is not less than the fair
The Company has only one class of shares referred to as equity shares market value. The 1999 Plan lapsed on June 11, 2009, and consequently
having a par value of ` 5/-. Each holder of equity shares is entitled to no further shares will be issued to employees under this plan.
one vote per share.
The activity in the 1998 Plan and 1999 Plan during the years ended
The Company declares and pays dividends in Indian rupees. March 31, 2012 and March 31, 2011, respectively, is as follows :
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting. Particulars Year ended March 31,
2012 2011
The Board of Directors, in their meeting on October 12, 2011, declared The 1998 Plan :
an interim dividend of ` 15 per equity share. Further the Board Options outstanding, beginning of the
of Directors, in their meeting on April 13, 2012, proposed a final period 50,070 2,42,264
dividend of ` 22 per equity share and a special dividend – 10 years
Less : Exercised 49,590 1,88,675
of Infosys BPO operations of ` 10 per equity share. The proposal is
Forfeited 480 3,519
subject to the approval of shareholders at the Annual General Meeting
Options outstanding, end of the period – 50,070
to be held on June 9, 2012. The total dividend appropriation for
Options exercisable, end of the period – 50,070
the year ended March 31, 2012 amounted to ` 3,137 crore including
The 1999 Plan :
corporate dividend tax of ` 438 crore.
Options outstanding, beginning of the
During the year ended March 31, 2011, the amount of per share period 48,720 2,04,464
dividend recognized as distributions to equity shareholders was ` 60. Less : Exercised 28,852 1,37,692
The dividend for the year ended March 31, 2011 includes ` 20 per Forfeited 8,185 18,052
share of final dividend, ` 10 per share of interim dividend and ` 30 per
Options outstanding, end of the period 11,683 48,720
share of 30th year special dividend. The total dividend appropriation
Options exercisable, end of the period 7,429 40,232
for the year ended March 31, 2011 amounted to ` 4,013 crore
including corporate dividend tax of ` 568 crore. The weighted average share price of options exercised under the 1998
In the event of liquidation of the Company, the holders of equity Plan during the years ended March 31, 2012 and March 31, 2011
shares will be entitled to receive any of the remaining assets of the was ` 2,799 and ` 2,950, respectively. The weighted average share
Company, after distribution of all preferential amounts. However, no price of options exercised under the 1999 Plan during the year ended
such preferential amounts exist currently. The distribution will be in March 31, 2012 and March 31, 2011 was ` 2,702 and ` 2,902, respectively.
proportion to the number of equity shares held by the shareholders.
The reconciliation of the number of shares outstanding and the
amount of share capital as at March 31, 2012 and March 31, 2011
is as follows :
Particulars As at March 31, 2012 As at March 31, 2011
Number of shares Amount Number of shares Amount
Number of shares at the beginning 57,41,51,559 287 57,38,25,192 287
Add : Shares issued on exercise of employee stock options 78,442 – 3,26,367 –
Number of shares at the end 57,42,30,001 287 57,41,51,559 287

Standalone financial statements | 19

Additional Information Infosys Annual Report 2011-12

The following tables summarize information about the options Particulars As at March 31,
outstanding under the 1998 Plan and 1999 Plan as at March 31, 2012 2012 2011
and March 31, 2011 respectively : Total dividend 2,699 3,445
Range of As at March 31, 2012 Dividend tax 438 568
exercise prices Number Weighted average Weighted Amount transferred to general reserve 847 645
per share (`) of shares remaining average Surplus – Closing balance 19,993 15,591
arising out of contractual life exercise price 29,470 24,214
options (in years) (in `)
The 1999 Plan : 2.3. Deferred taxes
300 – 700 – – – in ` crore
701 – 2,500 11,683 0.71 2,121 Particulars As at March 31,
11,683 0.71 2,121 2012 2011
Deferred tax assets
Range of As at March 31, 2011
Fixed assets 266 234
exercise prices Number Weighted average Weighted
Trade receivables 18 19
per share (`) of shares remaining average
Unavailed leave 101 85
arising out of contractual life exercise price
options (in years) (in `) Computer software 35 24
The 1998 Plan : Accrued compensation to employees 31 24
300 – 700 24,680 0.73 587 Others 8 20
701 – 1,400 25,390 0.56 777 459 406
50,070 0.65 683 Deferred tax liabilities
The 1999 Plan : Branch profit tax 270 176
300 – 700 33,759 0.65 448 270 176
701 – 2,500 14,961 1.71 2,121 Deferred tax assets and deferred tax liabilities have been offset
48,720 0.97 962 wherever the Company has a legally enforceable right to set off current
tax assets against current tax liabilities and where the deferred tax
As at March 31, 2012 and March 31, 2011, the Company had 11,683
assets and deferred tax liabilities relate to income taxes levied by the
and 98,790 number of shares reserved for issue under the 1998 and
same taxation authority.
1999 employee stock option plans, respectively. Most of the shares
reserved for issue under the 1998 and 1999 employee stock option As at March 31, 2012 and March 31, 2011, the Company has
plans are vested and are exercisable at any point of time, except for provided for branch profit tax of ` 270 and ` 176 crore, respectively,
4,254 shares issued under the 1999 employee stock option plan which for its overseas branches, as the Company estimates that these branch
is unvested as of March 31, 2012. The vesting date for these 4,254 profits would be distributed in the foreseeable future. Branch profit tax
shares is June 16, 2012. balance increased by ` 22 crore during the year ended March 31, 2012
due to foreign currency fluctuation impact.
2.2. Reserves and surplus
in ` crore 2.4. Other long-term liabilities
in ` crore
Particulars As at March 31,
2012 2011 Particulars As at March 31,
Capital reserve – Opening balance 54 54 2012 2011
Add : Transferred from surplus – – Others
54 54 Gratuity obligation – unamortized
Securities premium account – Opening amount relating to plan amendment
balance 3,057 3,022 (Refer to Note 2.28) 14 18
Add : Receipts on exercise of employee Rental deposits received from
stock options 6 24 subsidiary (Refer to Note 2.25) 7 7
Income tax benefit arising from 21 25
exercise of stock options 1 11
3,064 3,057 2.5. Trade payables
in ` crore
General reserve – Opening balance 5,512 4,867
Add : Transferred from surplus 847 645 Particulars As at March 31,
6,359 5,512 2012 2011
Surplus – Opening balance 15,591 13,806 Trade payables (1) 68 85
Add : Net profit after tax transferred from 68 85
the Statement of Profit and Loss 8,470 6,443
(1)
Includes dues to subsidiaries (Refer to Note 2.25) 61 55
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

20 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.6. Other current liabilities 2.7. Short-term provisions

in ` crore in ` crore
Particulars As at March 31, Particulars As at March 31,
2012 2011 2012 2011
Accrued salaries and benefits Provision for employee benefits
Salaries and benefits 53 42 Unavailed leave 379 303
Bonus and incentives 394 363 Others
Other liabilities Proposed dividend 1,837 1,149
Provision for expenses 824 537 Provision for
Retention monies 42 21 Tax on dividend 298 187
Withholding and other taxes payable 454 292 Income taxes 967 756
Gratuity obligation – unamortized Post-sales client support and
amount relating to plan amendment, warranties 123 78
current (Refer to Note 2.28) 4 4 3,604 2,473
Other payables (1) 31 1
Advances received from clients 14 19 Provision for post-sales client support and warranties
Unearned revenue 519 488 The movement in the provision for post-sales client support and
Mark-to-market loss on forward and warranties is as follows :
options contracts 28 – in ` crore
Unpaid dividends 2 3 Particulars Year ended March 31,
2,365 1,770 2012 2011
(1)
Includes dues to subsidiaries (Refer to Note 2.25) 29 – Balance at the beginning 78 73
Provision recognized / (reversal) 60 5
Provision utilized (15) –
Exchange difference during the period – –
Balance at the end 123 78
Provision for post-sales client support is expected to be utilized over
a period of six months to one year.
2.8. Fixed assets
in ` crore, except as otherwise stated
Particulars Original cost Depreciation and amortization Net book value
As at Additions / Deductions / As at As at For the Deductions / As at As at As at
April 1, Adjustments Retirement March 31, April 1, period Adjustments March 31, March 31, March 31,
2011 during the during the 2012 2011 during the 2012 2012 2011
period period period
Tangible assets :
Land : Freehold 406 18 – 424 – – – – 424 406
Leasehold 135 140 – 275 – – – – 275 135
Buildings (1)(2) 3,532 196 1 3,727 964 242 1 1,205 2,522 2,568
Plant and
equipment (2)(3) 876 81 147 810 525 166 147 544 266 351
Office
equipment(3) 276 39 43 272 143 55 43 155 117 133
Computer
equipment (2)(3)(4) 1,092 245 249 1,088 872 218 242 848 240 220
Furniture and
fixtures (2)(3) 598 69 128 539 359 111 127 343 196 239
Vehicles 7 2 – 9 3 1 – 4 5 4
6,922 790 568 7,144 2,866 793 560 3,099 4,045 4,056
Intangible assets :
Intellectual
property rights 12 17 – 29 12 1 – 13 16 –
12 17 – 29 12 1 – 13 16 –
Total 6,934 807 568 7,173 2,878 794 560 3,112 4,061 4,056
Previous year 6,357 1,020 443 6,934 2,578 740 440 2,878 4,056
(1)
Buildings include ` 250/- being the value of 5 shares of ` 50/- each in Mittal Towers Premises Co-operative Society Limited.
(2)
Includes certain assets provided on operating lease to Infosys BPO, a subsidiary.
(3)
During the years ended March 31, 2012 and March 31, 2011, certain assets which were old and not in use having gross book value of ` 559 crore and ` 440 crore respectively,
(net book value nil) were retired.
(4)
Includes computer equipment having gross book value of ` 10 crore (net book value ` 2 crore) transferred from Infosys Consulting Inc.

Standalone financial statements | 21

Additional Information Infosys Annual Report 2011-12

Profit / (loss) on disposal of fixed assets during the year ended 2.10. Investments
March 31, 2012 is ` 2 crore, (less than ` 1 crore for March 31, 2011). in ` crore, except as otherwise stated
The Company has entered into lease-cum-sale agreements to acquire Particulars As at March 31,
certain properties. In accordance with the terms of these agreements, 2012 2011
the Company has the option to purchase the properties on expiry of Non-current investments
the lease period. The Company has already paid 99% of the value Long-term investments – at cost
of the properties at the time of entering into the lease-cum-sale Trade (unquoted)
agreements. These amounts are disclosed as ‘Land-leasehold’ under (Refer to Note 2.10.1)
‘Tangible assets’ in the financial statements. Additionally, certain land Investments in equity instruments 6 6
has been purchased for which though the Company has the possession Less : Provision for investments 2 2
certificates, the sale deeds are yet to be executed as at March 31, 2012. 4 4
Tangible assets provided on operating lease to Infosys BPO, Others (unquoted)
a subsidiary company, as at March 31, 2012 and March 31, 2011 are Investments in equity instruments of
as follows : subsidiaries
in ` crore Infosys BPO Limited (1)
Particulars Cost Accumulated Net book 3,38,22,319 (3,38,22,319) equity
depreciation value shares of ` 10/- each, fully paid 659 659
Buildings 60 29 31 Infosys Technologies (China) Co.
60 25 35 Limited 107 107
Plant and machinery 3 3 – Infosys Technologies (Australia) Pty.
3 2 1 Limited
Computer equipment 1 1 – 1,01,08,869 (1,01,08,869) equity
1 1 – shares of AUD 0.11 par value, fully
Furniture and fixtures 2 2 – paid 66 66
1 1 – Infosys Consulting Inc., U.S.
Total 66 35 31 Nil (5,50,00,000) common stock of
65 29 36 US $1.00 par value, fully paid – 243
Infosys Technologies S. de R. L. de
The aggregate depreciation charged on the above assets during the
C. V., Mexico
year ended March 31, 2012 amounted to ` 6 crore (` 6 crore for the
14,99,99,990 (14,99,99,990) equity
year ended March 31, 2011).
shares of MXN 1/- par value, fully
The rental income from Infosys BPO for the year ended paid-up 54 54
March 31, 2012 amounted to ` 12 crore (` 17 crore for the year ended Infosys Technologies Sweden AB
March 31, 2011). 1,000 (1,000) equity shares of SEK
2.9. Leases 100 par value, fully paid – –
Infosys Tecnologia do Brasil Ltda
Obligations on long-term, non-cancelable operating leases 2,20,00,000 (1,45,16,997) shares of
The lease rentals charged during the period and the maximum BRL 1.00 par value, fully paid 60 38
obligations on long-term, non-cancelable operating leases payable Infosys Technologies (Shanghai)
as per the rentals stated in the respective agreements are as follows : Co. Limited 93 11
in ` crore Infosys Consulting India Limited
10,00,000 (Nil) equity shares of
Particulars Year ended March 31
` 10/- each, fully paid 1 –
2012 2011
Infosys Public Services Inc.
Lease rentals recognized during
1,00,00,000 (1,00,00,000) common
the period 91 68
stock of US $0.50 par value,
in ` crore fully paid 24 24
Lease obligations payable As at March 31 1,064 1,202
2012 2011 1,068 1,206
Within one year of the Balance Sheet date 93 63 Current investments – at the lower of
Due in a period between one year and cost and fair value
five years 161 152 Others non-trade (unquoted)
Due after five years 41 30 Liquid mutual fund units
(Refer to Note 2.10.2) 5 –
The operating lease arrangements, are renewable on a periodic basis Certificates of deposit
and extend upto a maximum of 10 years from their respective dates (Refer to Note 2.10.2) 336 119
of inception and relates to rented premises. Some of these lease 341 119
agreements have price escalation clauses. Aggregate amount of unquoted
investments 1,409 1,325
Aggregate amount of provision made for
non-current investments 2 2
(1)
Investments include 4,76,250 (6,79,250) options of Infosys BPO Limited.

22 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.10.1. Details of investments 2.12. Other non-current assets

The details of non-current trade investments in equity instruments as Particulars As at March 31,
at March 31, 2012 and March 31, 2011 is as follows : 2012 2011
in ` crore
Others
Particulars As at March 31, Advance to gratuity trust
2012 2011 (Refer to Note 2.28) 13 –
OnMobile Systems Inc., 13 –
(formerly Onscan Inc.) U.S.
21,54,100 (21,54,100) common stock 2.13. Trade receivables (1)
at US $0.4348 each, fully paid, par value in ` crore
US $0.001 each 4 4 Particulars As at March 31,
Merasport Technologies Private Limited 2012 2011
2,420 (2,420) equity shares at ` 8,052 Debts outstanding for a period exceeding
each, fully paid, par value ` 10 each 2 2 six months
6 6 Unsecured
Less : Provision for investment 2 2 Considered doubtful 47 56
4 4 Less : Provision for doubtful debts 47 56
– –
2.10.2. Details of investments in liquid mutual fund units and Other debts
certificates of deposit Unsecured
The balances held in liquid mutual fund units as at March 31, 2012 Considered good (2) 5,404 4,212
are as follows : Considered doubtful 33 27
Particulars Units Amount 5,437 4,239
(in ` crore) Less : Provision for doubtful debts 33 27
JP Morgan India Liquid Fund – 5,404 4,212
Super Institutional – Daily Dividend 5,404 4,212
Reinvestment 49,97,115 5
(1)
Includes dues from companies where directors are
interested. 8 2
49,97,115 5 (2)
Includes dues from subsidiaries (Refer to Note 2.25) 152 72
There are no investments in liquid mutual fund units as at
March 31, 2011. Provision for doubtful debts
The balances held in certificates of deposit as at March 31, 2012 are Periodically, the Company evaluates all customer dues to the Company
as follows : for collectability. The need for provisions is assessed based on various
factors including collectability of specific dues, risk perceptions of the
Particulars Face value Units Amount
industry in which the customer operates, general economic factors,
(`) (in ` crore)
which could affect the customer's ability to settle. The Company
State Bank of Mysore 1,00,000 10,000 91
normally provides for debtor dues outstanding for six months
Union Bank of India 1,00,000 2,500 23
or longer from the invoice date, as at the Balance Sheet date. The
Andhra Bank 1,00,000 14,000 128
Company pursues the recovery of the dues, in part or full.
Corporation Bank 1,00,000 10,000 94
36,500 336 2.14. Cash and cash equivalents
in ` crore
The balances held in certificates of deposit as at March 31, 2011 are
as follows : Particulars As at March 31,
2012 2011
Particulars Face value Units Amount
Cash on hand – –
(`) (in ` crore)
Balances with banks
State Bank of Hyderabad 1,00,000 7,500 71
In current and deposit accounts 18,057 13,665
Union Bank of India 1,00,000 5,000 48
Others
12,500 119
Deposits with financial institutions 1,500 1,500
19,557 15,165
2.11. Long-term loans and advances
in ` crore Balances with banks in unpaid dividend
accounts 2 3
Particulars As at March 31, Deposit accounts with more than 12
2012 2011 months maturity 379 606
Unsecured, considered good Balances with banks held as margin
Capital advances 433 250 money deposits against guarantees 117 92
Electricity and other deposits 26 30
Rental deposits 22 16 Cash and cash equivalents as of March 31, 2012 and March 31, 2011
Other loans and advances include restricted cash and bank balances of ` 119 crore and ` 95
Advance income taxes 929 924 crore, respectively. The restrictions are primarily on account of cash
Prepaid expenses 15 20 and bank balances held as margin money deposits against guarantees
Loans and advances to employees and unclaimed dividends.
Housing and other loans 6 4 The deposits maintained by the Company with banks and financial
1,431 1,244 institutions comprise of time deposits, which can be withdrawn by the
Company at any point without prior notice or penalty on the principal.

Standalone financial statements | 23

Additional Information Infosys Annual Report 2011-12

The details of balances as on Balance Sheet dates with banks are as in ` crore
follows : Particulars As at March 31,
in ` crore 2012 2011
Particulars As at March 31, Vijaya Bank 153 95
2012 2011 Yes Bank 131 23
In current accounts 17,146 12,932
ANZ Bank, Taiwan 2 3 In unpaid dividend accounts
Bank of America, U.S. 566 274 Citibank – Unclaimed dividend account – 1
Citibank N.A., Australia 68 61 HDFC Bank – Unclaimed dividend
Citibank N.A., Thailand 1 1 account 1 1
Citibank N.A., Japan 9 17 ICICI Bank – Unclaimed dividend
Citibank N.A., New Zealand 1 – account 1 1
Deutsche Bank, Belgium 6 5 2 3
Deutsche Bank, Germany 12 5 In margin money deposits against
Deutsche Bank, Netherlands 3 2 guarantees
Deutsche Bank, France 4 3 Canara Bank 56 29
Deutsche Bank, Switzerland 1 1 State Bank of India 61 63
Deutsche Bank, Singapore 8 3 117 92
Deutsche Bank, U.K. 31 40 Deposits with financial institutions
Deutsche Bank, Spain 1 1 HDFC Limited 1,500 1,500
HSBC Bank, U.K. – 1 1,500 1,500
Nordbanken, Sweden 2 4 Total cash and cash equivalents as per
Royal Bank of Canada, Canada 5 23 Balance Sheet 19,557 15,165
Deustche Bank, India 8 11
Deustche Bank – EEFC (Euro account) 9 8 2.15. Short-term loans and advances
Deustche Bank – EEFC (U.S. Dollar in ` crore
account) 23 141 Particulars As at March 31,
Deutsche Bank – EEFC (Swiss Franc 2012 2011
account) 2 2 Unsecured, considered good
ICICI Bank, India 13 18 Loans to subsidiary (Refer to Note 2.25) – 32
ICICI Bank – EEFC (U.S. Dollar account) 14 14 Others
Standard Chartered Bank, UAE 1 – Advances
The Bank of Tokyo – Mitsubishi Prepaid expenses 38 32
UFJ, Ltd., Japan 1 – For supply of goods and rendering
Punjab National Bank, India 1 – of services 20 50
792 638 Withholding and other taxes
In deposit accounts receivable 654 516
Allahabad Bank 852 500 Others (1) 14 10
Andhra Bank 510 399 726 640
Axis Bank 746 476 Restricted deposits (Refer to Note 2.32) 461 344
Bank of Baroda 1,732 1,100 Unbilled revenues 1,766 1,158
Bank of India 1,500 1,197 Interest accrued but not due 31 14
Bank of Maharashtra 475 488 Loans and advances to employees
Canara Bank 1,399 1,225 Housing and other loans 49 38
Central Bank of India 700 354 Salary advances 89 84
Corporation Bank 395 295 Electricity and other deposits 35 30
DBS Bank 40 – Rental deposits 6 2
Federal Bank 20 – Mark-to-market gain on forward and
HDFC Bank 1,357 646 options contracts – 63
ICICI Bank 1,418 689 3,163 2,373
IDBI Bank 1,000 716 Unsecured, considered doubtful
ING Vysya Bank 82 – Loans and advances to employees 3 3
Indian Overseas Bank 600 500 3,166 2,376
Jammu and Kashmir Bank 25 12 Less : Provision for doubtful loans and
Kotak Mahindra Bank 95 25 advances to employees 3 3
Oriental Bank of Commerce 700 578 3,163 2,373
Punjab National Bank 1,285 1,493 (1)
Includes dues from subsidiaries (Refer to Note 2.25) 13 –
Ratnakar Bank 5 –
State Bank of Hyderabad 500 225
State Bank of India – 386
State Bank of Mysore 249 354
South Indian Bank 25 25
Syndicate Bank 550 500
Union Bank of India 602 631

24 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.16. Income from software services and Particulars Year ended March 31,
products 2012 2011
in ` crore Commission charges 24 12
Particulars Year ended March 31, Printing and stationery 11 11
2012 2011 Professional membership and seminar
Income from software services 29,755 24,146 participation fees 14 10
Income from software products 1,499 1,239 Postage and courier 9 9
31,254 25,385 Advertisements 4 6
Provision for post-sales client support
2.17. Other income and warranties 60 5
in ` crore Commission to non-whole-time
Particulars Year ended March 31, directors 8 5
2012 2011 Freight charges 1 1
Interest received on deposits with banks Provision for bad and doubtful debts
and others 1,696 1,068 and advances 60 3
Dividend received on investment in Books and periodicals 3 3
mutual fund units 24 18 Auditor's remuneration
Miscellaneous income, net 28 22 Statutory audit fees 1 1
Gains / (losses) on foreign currency, net 81 39 Bank charges and commission 2 1
1,829 1,147 Donations 26 1
1,028 769
2.18. Expenses
in ` crore 2.19. Tax expense
in ` crore
Particulars Year ended March 31,
2012 2011 Year ended March 31
Employee benefit expenses 2012 2011
Salaries and bonus including overseas Current taxes
staff expenses 15,019 11,994 Income taxes 3,053 2,521
Contribution to provident and other Deferred taxes 57 (143)
funds 405 410 3,110 2,378
Staff welfare 49 55
15,473 12,459 Income taxes
Cost of technical sub-contractors The provision for taxation includes tax liabilities in India on the
Technical sub-contractors – Company's global income as reduced by exempt incomes and any tax
subsidiaries 1,809 1,568 liabilities arising overseas on income sourced from those countries.
Technical sub-contractors – others 674 476 Infosys' operations are conducted through Software Technology Parks
2,483 2,044 (STPs) and Special Economic Zones (SEZs). Income from STPs were tax
Travel expenses exempt for the earlier of 10 years commencing from the fiscal year in
Overseas travel expenses 845 688 which the unit commences software development, or March 31, 2011.
Travel and conveyance 99 83 Income from SEZs is fully tax exempt for the first 5 years, 50% exempt
944 771 for the next 5 years and 50% exempt for another 5 years subject to
Cost of software packages and others fulfilling certain conditions.
For own use 463 320 2.20. Contingent liabilities and commitments
Third party items bought for (to the extent not provided for)
service delivery to clients 162 139 in ` crore
625 459 Particulars As at March 31,
Communication expenses 2012 2011
Telephone charges 150 130 Contingent
Communication expenses 53 40 liabilities :
203 170 Outstanding
Other expenses guarantees and
Office maintenance 232 188 counter guarantees
Power and fuel 154 142 to various banks,
Brand building 82 70 in respect of the
Rent 91 68 guarantees given
Rates and taxes, excluding taxes by those banks in
on income 51 48 favor of various
Repairs to building 41 44 government
Repairs to plant and machinery 37 33 authorities and
Computer maintenance 46 33 others 3 3
Consumables 24 23 Claims against
Insurance charges 25 24 the Company, not
Research grants 3 14 acknowledged as
Marketing expenses 19 14 debts (1) 72 271

Standalone financial statements | 25

Additional Information Infosys Annual Report 2011-12

Particulars As at March 31, 2.21. Quantitative details

2012 2011 The Company is primarily engaged in the development and
[Net of amount maintenance of computer software. The production and sale of such
paid to statutory software cannot be expressed in any generic unit. Hence, it is not
authorities ` 1,114 possible to give the quantitative details of sales and certain information
crore (` 469 crore)] as required under paragraphs 5(viii)(c) of general instructions for
Commitments : preparation of the Statement of Profit and Loss as per revised Schedule
Estimated amount VI to the Companies Act, 1956.
of unexecuted
capital contracts 2.22. Imports (valued on the cost, insurance
(net of advances and freight basis)
and deposits) 949 742 in ` crore
in million in ` crore in million in ` crore Particulars Year ended March 31,
Forward contracts 2012 2011
outstanding Capital goods 180 161
In USD 677 3,445 500 2,230 Software packages 6 4
In Euro 20 136 20 127 186 165
In GBP 20 163 10 72
In AUD 23 121 10 46 2.23. Activity in foreign currency
Options in ` crore
outstanding Particulars Year ended March 31,
In USD 50 254 – – 2012 2011
4,119 2,475 Earnings in foreign currency
(1)
Claims against the Company not acknowledged as debts include demand from the Income from software services and
Indian Income Tax Authorities for payment of additional tax of ` 1,088 crore (` 671 products 30,597 23,954
crore), including interest of ` 313 crore (` 177 crore) upon completion of their tax
review for fiscal 2005, fiscal 2006, fiscal 2007 and fiscal 2008. The tax demands Interest received from banks and others 12 6
are mainly on account of disallowance of a portion of the deduction claimed by Dividend received from subsidiary 578 –
the Company under Section 10A of the Income Tax Act. The deductible amount is 31,187 23,960
determined by the ratio of export turnover to total turnover. The disallowance arose
Expenditure in foreign currency
from certain expenses incurred in foreign currency being reduced from export turnover
but not reduced from total turnover. The tax demand for fiscal 2007 and fiscal 2008 Overseas travel expenses (including
also includes disallowance of the portion of profit earned outside India from the STP visa charges) 702 535
units and disallowance of profits earned from SEZ units. The matter for fiscal 2005, Professional charges 354 159
fiscal 2006, fiscal 2007 and fiscal 2008 are pending before the Commissioner of Income Technical sub-contractors –
Tax (Appeals) Bangalore. The Company is contesting the demand and the Management
including its tax advisors believes that its position will likely be upheld in the appellate subsidiaries 1,806 1,568
process. The Management believes that the ultimate outcome of this proceeding will Overseas salaries and incentives 9,140 6,907
not have a material adverse effect on the Company's financial position and results of Other expenditure incurred overseas
operations. for software development 1,344 1,431
As of the Balance Sheet date, the Company's net foreign currency 13,346 10,600
exposures that are not hedged by a derivative instrument or otherwise Net earnings in foreign currency 17,841 13,360
is ` 1,081 crore (` 1,196 crore as at March 31, 2011).
The foreign exchange forward and option contracts mature between 2.24. Dividends remitted in foreign currencies
1 to 12 months. The following table analyzes the derivative financial The Company remits the equivalent of the dividends payable to equity
instruments into relevant maturity groupings based on the remaining shareholders and holders of ADS. For ADS holders, the dividend
period as of the Balance Sheet date: is remitted in Indian rupees to the depository bank, which is the
in ` crore registered shareholder on record for all owners of the Company's
Particulars As at March 31, ADS. The depository bank purchases the foreign currencies and remits
2012 2011 dividends to the ADS holders.
Not later than one month 304 413 The particulars of dividends remitted during the years ended
Later than one month and not later than March 31, 2012 and March 31, 2011 are as follows :
three months 650 590 in ` crore
Later than three months and not later Particulars Number Number of Year ended
than one year 3,165 1,472 of Non- shares to March 31,
4,119 2,475 resident which the
The Company recognized a loss on derivative financial instruments share dividends
of ` 263 crore and gain on derivative financial instruments of ` 53 holders relate
crore during the years ended March 31, 2012 and March 31, 2011, 2012 2011
respectively, which is included in other income. Interim dividend for
fiscal 2012 5 8,13,31,029 122 –
Interim and 30th
year special dividend
for fiscal 2011 4 10,87,18,147 – 435
Final dividend for
fiscal 2011 4 8,74,37,368 175 –
Final dividend for
fiscal 2010 7 10,68,22,614 – 160

26 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.25. Related party transactions Particulars As at March 31,

List of related parties: 2012 2011
Infosys Mexico – 1
Name of subsidiaries Country Holding as at March 31, Infosys Sweden 1 1
2012 2011 Other payables
Infosys BPO India 99.98% 99.98% Infosys Australia 2 –
Infosys Australia Australia 100% 100% Infosys BPO (including subsidiaries) 8 –
Infosys China China 100% 100% Infosys Consulting India 2 –
Infosys Consulting Infosys Public Services 17 –
Inc. (1) U.S. – 100% Deposit given for shared services
Infosys Mexico Mexico 100% 100% Infosys BPO (including subsidiaries) 3 –
Infosys Sweden Sweden 100% 100% Deposit taken for shared services
Infosys Shanghai China 100% 100% Infosys BPO 7 7
Infosys Brasil Brazil 100% 100%
Infosys Public Services The details of the related party transactions entered into by the
Inc. U.S. 100% 100% Company, in addition to the lease commitments described in note 2.8,
Infosys BPO s.r.o. (2) Czech for the years ended March 31, 2012 and March 31, 2011 are as follows :
Republic 99.98% 99.98% in ` crore
Infosys BPO (Poland)
Sp.Z.o.o (2) Poland 99.98% 99.98% Particulars Year ended March 31,
Infosys BPO (Thailand) 2012 2011
Limited (2) Thailand – – Capital transactions :
Infosys Consulting India Financing transactions
Limited (3) India 100% 100% Infosys Shanghai 82 11
McCamish Systems Infosys Mexico – 14
LLC (2) U.S. 99.98% 99.98% Infosys Brasil 22 10
Portland Group Pty. Infosys China – 42
Limited (2)(4) Australia 99.98% – Infosys Consulting India 1 –
Portland Procurement Loans
Services Pty. Limited (2)(4) Australia 99.98% – Infosys Brasil (10) 9
(1)
On October 7, 2011, the Board of Directors of Infosys Consulting Inc., approved the Infosys China (25) (23)
termination and winding down of the entity, and entered into a scheme of amalgamation Revenue transactions :
and initiated its merger with Infosys Limited. The termination of Infosys Consulting Purchase of services
Inc. became effective on January 12, 2012, in accordance with the Texas Business Infosys Australia 1,333 889
Organizations Code. Effective January 12, 2012, the assets and liabilities of Infosys
Consulting Inc., have been transferred to Infosys Limited.
Infosys China 263 240
(2)
Wholly-owned subsidiaries of Infosys BPO. During the year ended March 31, 2011, Infosys Consulting 146 353
Infosys BPO (Thailand) Limited was liquidated. Infosys Consulting India 2 5
(3)
On February 9, 2012, Infosys Consulting India Limited filed a petition in the Honorable Infosys BPO (including subsidiaries) 27 17
High court of Karnataka for its merger with Infosys Limited.
Infosys Sweden 10 12
(4)
On January 4, 2012, Infosys BPO acquired 100% of the voting interest in Portland
Group Pty. Ltd. Infosys Mexico 27 49
Infosys Brasil 1 3
Infosys guarantees the performance of certain contracts entered into
Purchase of shared services including
by its subsidiaries. The details of amounts due to or due from as at
facilities and personnel
March 31, 2012 and March 31, 2011 are as follows :
in ` crore
Infosys Consulting (including
subsidiaries) 2 –
Particulars As at March 31, Infosys BPO (including subsidiaries) 101 114
2012 2011 Interest income
Short-term loans and advances Infosys China 1 2
Infosys China – 23 Infosys Brasil 1 –
Infosys Brasil – 9 Sale of services
Trade receivables Infosys Australia 14 33
Infosys China 12 39
Infosys China 8 6
Infosys Australia – 5
Infosys Brasil 1 –
Infosys Mexico – 1
Infosys Mexico 5 –
Infosys Consulting – 24
Infosys BPO (including subsidiaries) 34 21
Infosys BPO (including subsidiaries) 9 3
Infosys Consulting 43 73
Infosys Public Services 131 –
Other receivables Infosys Public Services 171 –
Infosys Australia 1 – Sale of shared services including facilities
Infosys BPO (including subsidiaries) 1 – and personnel
Infosys Public Services 11 – Infosys BPO (including subsidiaries) 57 78
Trade payables Infosys Consulting 21 4
Infosys China 6 32 Dividend income
Infosys Australia 52 – Infosys Australia 578 –
Infosys BPO (including subsidiaries) 2 3 During the year ended March 31, 2012, an amount of ` 20 crore
Infosys Consulting – 17 (nil for the year ended March 31, 2011) was donated to Infosys
Infosys Consulting India – 1 Foundation, a not-for-profit foundation, in which certain directors of
the Company are trustees.

Standalone financial statements | 27

Additional Information Infosys Annual Report 2011-12

During the year ended March 31, 2012, an amount of nil (` 12 crore Industry segments for the Company are primarily financial services
for the year ended March 31, 2011 respectively) has been granted and insurance (FSI) comprising enterprises providing banking,
to Infosys Science Foundation, a not-for-profit foundation, in which finance and insurance services, manufacturing enterprises (MFG),
certain directors and officers of the Company are trustees. enterprises in the energy, utilities and telecommunication services
The following table describes the compensation to key managerial (ECS) and retail, logistics, consumer packaged goods, life sciences
personnel which comprise directors and members of the Executive and health care enterprises (RCL). Geographic segmentation is based
Council : on business sourced from that geographic region and delivered from
both on-site and off-shore. North America comprises the U.S., Canada
in ` crore
and Mexico, Europe includes continental Europe (both the east and
Particulars Year ended March 31, the west), Ireland and the U.K., and the Rest of the World comprises
2012 2011 all other places except those mentioned above and India. Consequent
Salaries and other employee benefits 45 33 to the above change in the composition of reportable segments, the
prior year comparatives have been restated.
2.26. Research and development expenditure Revenue and identifiable operating expenses in relation to segments
in ` crore
are categorized based on items that are individually identifiable to that
Particulars Year ended March 31, segment. Allocated expenses of segments include expenses incurred for
2012 2011 rendering services from the Company's offshore software development
Capital 5 6 centers and on-site expenses, which are categorized in relation to
Revenue 655 521 the associated turnover of the segment. Certain expenses such as
depreciation, which form a significant component of total expenses,
2.27. Segment reporting are not specifically allocable to specific segments as the underlying
The Company's operations predominantly relate to providing assets are used interchangeably. The Management believes that it is
end-to-end business solutions thereby enabling clients to enhance not practical to provide segment disclosures relating to those costs and
business performance, delivered to customers globally operating in expenses, and accordingly these expenses are separately disclosed as
various industry segments. Effective quarter ended June 30, 2011, ‘unallocated’ and adjusted against the total income of the Company.
the Company reorganized its business to increase its client focus. Fixed assets used in the Company's business or liabilities contracted
Consequent to the internal reorganization, there were changes effected have not been identified to any of the reportable segments, as the
in the reportable segments based on the ‘Management approach’, fixed assets and services are used interchangeably between segments.
as laid down in AS 17, Segment reporting. The Chief Executive Officer Accordingly, no disclosure relating to total segment assets and liabilities
evaluates the Company's performance and allocates resources based are made. Geographical information on revenue and industry revenue
on an analysis of various performance indicators by industry classes information is collated based on individual customers invoiced or in
and geographic segmentation of customers. Accordingly, segment relation to which the revenue is otherwise recognized.
information has been presented both along industry classes and
geographic segmentation of customers, industry being the primary
segment. The accounting principles used in the preparation of the
financial statements are consistently applied to record revenue
and expenditure in individual segments, and are as set out in the
significant accounting policies.

Industry segments
For the years ended March 31, 2012 and March 31, 2011:
in ` crore
Particulars FSI MFG ECS RCL Total
Income from software services and products 11,172 6,117 6,572 7,393 31,254
9,293 4,686 5,948 5,458 25,385
Identifiable operating expenses 5,162 2,789 3,018 3,148 14,117
4,210 2,107 2,844 2,385 11,546
Allocated expenses 2,475 1,402 1,504 1,695 7,076
1,971 1,009 1,275 1,170 5,425
Segmental operating income 3,535 1,926 2,050 2,550 10,061
3,112 1,570 1,829 1,903 8,414
Unallocable expenses 794
740
Other income, net 1,829
1,147
Profit before taxes and exceptional item 11,096
8,821
Tax expense 3,110
2,378
Profit after taxes before exceptional item 7,986
6,443
Exceptional item – Dividend income, net of taxes 484
–
Profit after taxes and exceptional item 8,470
6,443

28 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Geographic segments
For the years ended March 31, 2012 and March 31, 2011:
in ` crore
Particulars North Europe India Rest of the Total
America World
Income from software services and products 20,346 6,614 740 3,554 31,254
16,815 5,252 594 2,724 25,385
Identifiable operating expenses 8,869 2,995 368 1,885 14,117
7,521 2,311 286 1,428 11,546
Allocated expenses 4,659 1,496 153 768 7,076
3,610 1,120 122 573 5,425
Segmental operating income 6,818 2,123 219 901 10,061
5,684 1,821 186 723 8,414
Unallocable expenses 794
740
Other income, net 1,829
1,147
Profit before taxes and exceptional item 11,096
8,821
Tax expense 3,110
2,378
Profit after taxes before exceptional item 7,986
6,443
Exceptional item – Dividend income, net of taxes 484
–
Profit after taxes and exceptional item 8,470
6,443

2.28. Gratuity Plan

The following table sets 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 and plan assets :
in ` crore
Particulars As at March 31,
2012 2011 2010 2009 2008
Obligations at year beginning 459 308 256 217 221
Transfer of obligation – – (2) – –
Service cost 143 171 72 47 47
Interest cost 37 24 19 15 16
Actuarial
(gain) / loss (6) 15 (4) – (9)
Benefits paid (64) (59) (33) (23) (21)
Amendment in benefit plans – – – – (37)
Obligations at year / period end 569 459 308 256 217
Defined benefit obligation liability as at the Balance Sheet date is fully funded by the Company.
Change in plan assets
Particulars As at March 31,
2012 2011 2010 2009 2008
Plan assets at year beginning, at fair value 459 310 256 229 221
Expected return on plan assets 47 34 24 16 18
Actuarial gain – 1 1 5 2
Contributions 140 173 62 29 9
Benefits paid (64) (59) (33) (23) (21)
Plan assets at year / period end, at fair value 582 459 310 256 229
Reconciliation of present value of the obligation and the fair value of the plan assets :
Particulars As at March 31,
2012 2011 2010 2009 2008
Fair value of plan assets at the end of the year / period 582 459 310 256 229
Present value of the defined benefit obligations at the end of the year 569 459 308 256 217
Asset recognized in the Balance Sheet 13 – 2 – 12
Assumptions
Interest rate (%) 8.57 7.98 7.82 7.01 7.92
Estimated rate of return on plan assets (%) 9.45 9.36 9.00 7.01 7.92
Weighted expected rate of salary increase (%) 7.27 7.27 7.27 5.10 5.10

Standalone financial statements | 29

Additional Information Infosys Annual Report 2011-12

Net gratuity cost for the years ended March 31, 2012 and March 31, Assumptions used in determining the present value obligation of the
2011 comprises of the following components : interest rate guarantee under the deterministic approach :
in ` crore
Particulars As at March 31,
Particulars Year ended March 31, 2012 2011 2010 2009 2008
2012 2011 Government
Gratuity cost for the year of India (GOI)
Service cost 143 171 bond yield 8.57% 7.98% 7.83% 7.01% 7.96%
Interest cost 37 24 Remaining term
Expected return on plan assets (47) (34) of maturity 8 years 7 years 7 years 6 years 6 years
Actuarial (gain) / loss (6) 14 Expected
Plan amendment amortization (4) (4) guaranteed
Net gratuity cost 123 171 interest rate 8.25% 9.50% 8.50% 8.50% 8.50%
Actual return on plan assets 47 35
2.30. Superannuation
Gratuity cost, as disclosed above, is included under employee benefit
expenses and is segregated between software development expenses, The Company contributed ` 63 crore to the superannuation trust
selling and marketing expenses, and general and administration during the year ended March 31, 2012 (` 57 crore during the year
expenses on the basis of number of employees. ended March 31, 2011).
During the year ended March 31, 2010, a reimbursement obligation 2.31. Reconciliation of basic and diluted shares
of ` 2 crore has been recognized towards settlement of gratuity liability used in computing earnings per share
of Infosys Consulting India Limited.
Particulars Year ended March 31,
As at March 31, 2012 and March 31, 2011, the plan assets have been
2012 2011
primarily invested in government securities. The estimates of future
Number of shares considered as
salary increases, considered in actuarial valuation, take account of
basic weighted average shares
inflation, seniority, promotion and other relevant factors such as
outstanding 57,41,99,094 57,40,13,650
supply and demand factors in the employment market. The Company
Add : Effect of dilutive issues of
expects to contribute approximately ` 125 crore to the gratuity trust
shares / stock options 30,648 1,88,308
during the fiscal 2013.
Number of shares considered
Effective July 1, 2007, the Company revised the employee death as weighted average shares and
benefits provided under the Gratuity Plan, and included all eligible potential shares outstanding 57,42,29,742 57,42,01,958
employees under a consolidated term insurance cover. Accordingly,
the obligations under the Gratuity Plan reduced by ` 37 crore, which 2.32. Restricted deposits
is being amortized on a straight-line basis to the Statement of Profit
and Loss over 10 years representing the average future service period Deposits with financial institutions as at March 31, 2012 include
of the employees. The unamortized liability as at March 31, 2012 and ` 461 crore (` 344 crore as at March 31, 2011) deposited with Life
March 31, 2011 amounted to ` 18 crore and ` 22 crore, respectively and Insurance Corporation of India to settle employee-related obligations
disclosed under ‘Other long-term liabilities and other current liabilities’. as and when they arise during the normal course of business. This
amount is considered as restricted cash and is hence not considered
2.29. Provident fund ‘cash and cash equivalents’.
The Company contributed ` 214 crore towards provident fund during 2.33. Dues to micro, small and medium enterprises
the year ended March 31, 2012 (` 179 crore during the year ended
March 31, 2011). The Company has no dues to micro, small and medium enterprises
during the years ended March 31, 2012 and March 31, 2011, and as
The Guidance on Implementing AS 15, Employee Benefits (revised at March 31, 2012 and March 31, 2011.
2005) issued by Accounting Standards Board (ASB) states that benefits
involving employer established provident funds, which require interest 2.34. Exceptional item
shortfalls to be recompensed are to be considered as defined benefit During the quarter and year ended March 31, 2012, the Company
plans. The Actuarial Society of India has issued the final guidance for received dividend of ` 484 crore, net of taxes of ` 94 crore from its
measurement of provident fund liabilities during the quarter ended wholly-owned subsidiary Infosys Australia Limited.
December 31, 2011. The actuary has accordingly provided a valuation
and based on the following assumptions there is no shortfall as at 2.35. Schedules to Cash Flow Statements
March 31, 2012, 2011, 2010, 2009 and 2009, respectively.
2.35.1. Change in trade receivables
The details of fund and plan asset position are as follows : in ` crore, except as otherwise stated
in ` crore
Particulars Year ended March 31,
Particulars As at March 31,
2012 2011
2012 2011 2010 2009 2008
As per the Balance Sheet 5,404 4,212
Plan assets at period
end, at fair value 1,816 1,579 1,295 997 743 Less : Trade receivables taken over from
Infosys Consulting Inc., U.S.
Present value of benefit
pursuant to transfer of assets and
obligation at period end 1,816 1,579 1,295 997 743
liabilities, effective January 2012 12 –
Asset recognized in
Less : Opening balance considered 4,212 3,244
Balance Sheet – – – – –
1,180 968

30 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

2.35.2. Change in loans and advances and 2.35.5. Payment towards capital expenditure
other assets in ` crore, except as otherwise stated
in ` crore, except as otherwise stated Particulars Year ended March 31,
Particulars Year ended March 31, 2012 2011
2012 2011 As per the Balance Sheet (1)(2) 797 1,017
As per the Balance Sheet Less : Profit on sale of tangible assets 2 –
(current and non current) (1) 4,605 3,617 Less : Opening capital work-in-progress 249 228
Less : Gratuity obligation – unamortized Add : Closing capital work-in-progress 588 249
amount relating to plan Add : Opening retention monies 21 66
amendment (2) 18 22 Less : Closing retention monies 42 21
Interest accrued but not due 31 14 Add : Closing capital advance 433 250
Loan to subsidiary – 32 Less : Opening capital advance 250 181
Advance income taxes 929 924 1,296 1,152
Capital advance 433 250 (1)
Net of ` 3 crore movement in land from leasehold to freehold on acquisition for the year
3,194 2,375 ended March 31, 2011.
Less : Opening balance considered 2,375 1,671
(2)
Net of assets having gross book value of ` 10 crore (net book value ` 2 crore) taken over
from Infosys Consulting Inc., U.S., pursuant to transfer of assets and liabilities, effective
819 704 January 2012.
(1)
Excludes loans and advances and other assets of ` 2 crore taken over from Infosys
Consulting Inc., U.S., pursuant to transfer of assets and liabilities, effective January 2012. 2.35.6. Investments in subsidiaries (1)
(2)
Refer to Note 2.28 in ` crore, except as otherwise stated
Particulars Year ended March 31,
2.35.3. Change in liabilities and provisions 2012 2011
in ` crore, except as otherwise stated As per the Balance Sheet (2) 1,063 1,202
Particulars Year ended March 31, Less : Opening balance considered (3) 959 1,125
2012 2011 104 77
As per the Balance Sheet (current and (1)
Refer to Note 2.25 for investment made in subsidiaries
non current) (1) 6,050 4,353 (2)
Excludes investment in Infosys Consulting India Limited of ` 1 crore taken over from
Less : Unpaid dividend 2 3 Infosys Consulting Inc.,U.S., pursuant to transfer of assets and liabilities, effective
Retention monies 42 21 January 2012.
(3)
Excludes investment of ` 243 crore as of March 31, 2011 in Infosys Consulting Inc.,
Gratuity obligation – unamortized U.S., pursuant to transfer of assets and liabilities, effective January 2012.
amount relating to plan
amendment 18 22 2.35.7. Investment / (disposal) of other investments
Provisions separately considered in Cash in ` crore, except as otherwise stated
Flow Statement Particulars Year ended March 31,
Income taxes 967 756 2012 2011
Proposed dividend 1,837 1,149 Opening balance considered 119 3,497
Tax on dividend 298 187 Less : Closing balance 341 119
2,886 2,215 (222) 3,378
Less : Opening balance considered 2,215 1,981
671 234 2.35.8. Interest and dividend received
(1)
Excludes trade payables of ` 8 crore taken over from Infosys Consulting Inc., in ` crore, except as otherwise stated
U.S., pursuant to transfer of assets and liabilities, effective January 2012.
Particulars Year ended March 31,
2.35.4. Income taxes paid 2012 2011
in ` crore, except as otherwise stated Interest and dividend income as per the
Particulars Year ended March 31, Statement of Profit and Loss 1,720 1,086
2012 2011 Add : Opening interest accrued but not
Charge as per the Statement of due on certificate of deposits and
Profit and Loss 3,110 2,378 bank deposits 14 14
Add / (Less) : Increase / (Decrease) in Less : Closing interest accrued but not
advance income taxes (1) (1) 283 due on certificate of deposits and
Increase / (Decrease) in deferred taxes (2)(3) (57) 143 bank deposits and subsidiary loan 31 14
Income tax benefit arising from exercise 1,703 1,086
of stock options (1) (11)
(Increase) / Decrease in income tax 2.35.9. Loan given to subsidiaries
in ` crore, except as otherwise stated
provision(4) (207) (37)
Particulars Year ended March 31,
2,844 2,756
2012 2011
(1)
Excludes advance taxes ` 6 crore taken over from Infosys Consulting Inc., U.S. pursuant
to transfer of assets and liabilities effective January 2012. Closing balance – 32
(2)
Excludes exchange difference of ` 22 crore and ` 6 crore for the years ended Less : Increase in loan balance due to
March 31, 2012 and March 31, 2011, respectively. exchange difference 3 –
(3)
Excludes deferred tax asset of ` 38 crore taken over from Infosys Consulting Inc., Less : Opening balance 32 46
U.S., pursuant to transfer of assets and liabilities, effective January 2012.
(4)
Excludes provision for taxes of ` 4 crore taken over from Infosys Consulting Inc., (35) (14)
U.S., pursuant to transfer of assets and liabilities, effective January 2012.

Standalone financial statements | 31

Additional Information Infosys Annual Report 2011-12

2.36. Function-wise classification of the Statement of Profit and Loss

in ` crore
Year ended March 31,
2012 2011
Income from software services and products 31,254 25,385
Software development expenses 17,835 14,267
GROSS PROFIT 13,419 11,118
Selling and marketing expenses 1,453 1,219
General and administration expenses 1,905 1,485
3,358 2,704
OPERATING PROFIT BEFORE DEPRECIATION 10,061 8,414
Depreciation and amortization 794 740
OPERATING PROFIT 9,267 7,674
Other income 1,829 1,147
PROFIT BEFORE TAX AND EXCEPTIONAL ITEM 11,096 8,821
Tax expense :
Current tax 3,053 2,521
Deferred tax 57 (143)
PROFIT AFTER TAX BEFORE EXCEPTIONAL ITEM 7,986 6,443
Dividend income, net of taxes 484 –
PROFIT AFTER TAX AND EXCEPTIONAL ITEM 8,470 6,443

2.37. Details of rounded off amounts

The financial statements are presented in ` crore. Those items which are required to be disclosed and which were not presented in the financial
statement due to rounding off to the nearest ` crore are given as follows :
Balance Sheet items
in ` crore
Description Note As at March 31,
2012 2011
Fixed assets – vehicles 2.8
Deletion during the period 0.47 0.08
Depreciation on deletions 0.47 0.08
Investments 2.10
Investment in Infosys Sweden 0.06 0.06

Profit and Loss items

in ` crore
Description Note Year ended March 31,
2012 2011
Additional dividend Profit and Loss 0.02 –
Additional dividend tax – –
Auditor's remuneration 2.18
Certification charges 0.07 0.06
Out-of-pocket expenses 0.05 0.04
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

32 | Standalone financial statements

Infosys Annual Report 2011-12 Additional Information

Independent auditors' report

To the Board of Directors of Infosys Limited
(formerly Infosys Technologies Limited)
We have audited the accompanying consolidated financial statements of Infosys Limited (‘the Company’) and its subsidiaries, which comprise
the Consolidated Balance Sheet as at March 31, 2012, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of
Changes in Equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated
financial position, consolidated financial performance and consolidated cash flows of the Company in accordance with the International Financial
Reporting Standards as issued by International Accounting Standards Board (‘IFRS’). This responsibility includes the design, implementation
and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
Company's preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
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 IFRS :
(a) in the case of the Consolidated Balance Sheet, of the financial position of the Company as at March 31, 2012;
(b) in the case of the Consolidated Statement of Comprehensive Income, of the financial performance for year ended on that date;
(c) in the case of the Consolidated Statement of Changes in Equity, of the changes in equity for the year ended on that date; and
(d) in the case of the Consolidated Statement of Cash Flows, of the cash flows for the year ended on that date.

for B S R & Co.

Chartered Accountants
Firm's registration No. 101248W

Natrajh Ramakrishna
Bangalore Partner
April 13, 2012 Membership No. 32815

Financial statements as per IFRS | 33

Additional Information Infosys Annual Report 2011-12

Consolidated Balance Sheet

in ` crore except share data
Particulars Note As at March 31,
2012 2011
ASSETS
Current assets
Cash and cash equivalents 2.1 20,591 16,666
Available-for-sale financial assets 2.2 32 21
Investment in certificates of deposit 345 123
Trade receivables 5,882 4,653
Unbilled revenue 1,873 1,243
Derivative financial instruments 2.7 – 66
Prepayments and other current assets 2.4 1,523 917
Total current assets 30,246 23,689
Non-current assets
Property, plant and equipment 2.5 5,409 4,844
Goodwill 2.6 993 825
Intangible assets 2.6 173 48
Available-for-sale financial assets 2.2 12 23
Deferred income tax assets 2.17 316 378
Income tax assets 2.17 1,037 993
Other non-current assets 2.4 162 463
Total non-current assets 8,102 7,574
Total assets 38,348 31,263
LIABILITIES AND EQUITY
Current liabilities
Trade payables 23 44
Derivative financial instruments 2.7 42 –
Current income tax liabilities 2.17 1,054 817
Client deposits 15 22
Unearned revenue 545 518
Employee benefit obligations 2.8 498 140
Provisions 2.9 133 88
Other current liabilities 2.10 2,456 2,012
Total current liabilities 4,766 3,641
Non-current liabilities
Deferred income tax liabilities 2.17 12 –
Employee benefit obligations 2.8 – 259
Other non-current liabilities 2.10 109 60
Total liabilities 4,887 3,960
Equity
Share capital – `5 par value 60,00,00,000 equity shares authorized, issued and
outstanding 57,13,96,401 and 57,13,17,959, net of 28,33,600 treasury shares each,
as of March 31, 2012 and March 31, 2011, respectively 286 286
Share premium 3,089 3,082
Retained earnings 29,816 23,826
Other components of equity 270 109
Total equity attributable to equity holders of the Company 33,461 27,303
Non-controlling interests – –
Total equity 33,461 27,303
Total liabilities and equity 38,348 31,263
Note : The accompanying notes form an integral part of the consolidated financial statements.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W
Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan
Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director
Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar
Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

34 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Consolidated statements of comprehensive income

in ` crore except share data
Particulars Note Year ended March 31,
2012 2011
Revenues 33,734 27,501
Cost of sales 2.11 19,808 15,916
Gross profit 13,926 11,585
Operating expenses :
Selling and marketing expenses 2.11 1,757 1,512
Administrative expenses 2.11 2,390 1,971
Total operating expenses 4,147 3,483
Operating profit 9,779 8,102
Other income, net 2.14 1,904 1,211
Profit before income taxes 11,683 9,313
Income tax expense 2.17 3,367 2,490
Net profit 8,316 6,823
Other comprehensive income :
Fair value changes on available-for-sale financial asset, net of tax effect
(Refer to Note 2.2 and 2.17) (8) (12)
Exchange differences on translating foreign operations 169 49
Total other comprehensive income 161 37
Total comprehensive income 8,477 6,860
Profit attributable to :
Owners of the Company 8,316 6,823
Non-controlling interest – –
8,316 6,823
Total comprehensive income attributable to :
Owners of the Company 8,477 6,860
Non-controlling interest – –
8,477 6,860
Earnings per equity share :
Basic (`) 145.55 119.45
Diluted (`) 145.54 119.41
Weighted average equity shares used in computing earnings per equity share : 2.18
Basic 57,13,65,494 57,11,80,050
Diluted 57,13,96,142 57,13,68,358
Note : The accompanying notes form an integral part of the consolidated financial statements.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

Financial statements as per IFRS | 35

Additional Information Infosys Annual Report 2011-12

Consolidated statements of changes in equity

in ` crore except share data
Particulars Shares (1) Share Share Retained Other Total equity
capital premium earnings components attributable
of equity to equity
holders of the
Company
Balance as of April 1, 2010 57,09,91,592 286 3,047 20,668 72 24,073
Changes in equity for the year ended March 31, 2011
Shares issued on exercise of employee stock options 3,26,367 – 24 – – 24
Income tax benefit arising on exercise of share
options – – 11 – – 11
Dividends (including corporate dividend tax) – – – (3,665) – (3,665)
Fair value changes on available-for-sale financial
assets, net of tax effect – – – – (12) (12)
Net profit – – – 6,823 – 6,823
Exchange differences on translating foreign
operations – – – – 49 49
Balance as of March 31, 2011 57,13,17,959 286 3,082 23,826 109 27,303
Changes in equity for the year ended March 31, 2012
Shares issued on exercise of employee stock options 78,442 – 6 – – 6
Income tax benefit arising on exercise of share
options – – 1 – – 1
Dividends (including corporate dividend tax) – – – (2,326) – (2,326)
Fair value changes on available-for-sale financial
assets, net of tax effect (Refer to Note 2.2) – – – – (8) (8)
Net profit – – – 8,316 – 8,316
Exchange differences on translating foreign
operations – – – – 169 169
Balance as of March 31, 2012 57,13,96,401 286 3,089 29,816 270 33,461
Note : The accompanying notes form an integral part of the consolidated financial statements.
(1)
Excludes treasury shares of 28,33,600 held by consolidated trust.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

36 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Consolidated statements of cash flows

in ` crore
Particulars Note Year ended March 31,
2012 2011
Operating activities :
Net profit 8,316 6,823
Adjustments to reconcile net profit to net cash provided by operating activities :
Depreciation and amortization 2.5 and 2.6 937 862
Income tax expense 2.17 3,367 2,490
Income on available-for-sale financial assets and certificates of deposits (40) (101)
Profit on sale of property, plant and equipment (2) –
Effect of exchange rate changes assets and liabilities 31 –
Other non-cash item 7 4
Changes in working capital
Trade receivables (1,181) (1,158)
Prepayments and other assets (59) (236)
Unbilled revenue (629) (401)
Trade payables (24) 34
Client deposits (7) 13
Unearned revenue 26 (14)
Other liabilities and provisions 587 447
Cash generated from operations 11,329 8,763
Income taxes paid 2.17 (3,117) (2,856)
Net cash provided by operating activities 8,212 5,907
Investing activities :
Payment for acquisition of business, net of cash acquired (199) (2)
Payment for acquisition of intellectual property rights 2.6 (90) –
Expenditure on property, plant and equipment, including changes in retention money 2.5 and 2.10 (1,442) (1,300)
Loans to employees (24) (31)
Deposits placed with corporation (112) (100)
Income on available-for-sale financial assets 27 21
Investment in certificates of deposit (360) (840)
Redemption of certificates of deposit 150 1,985
Investment in available-for-sale financial assets (5,970) (1,932)
Redemption of available-for-sale financial assets 5,959 4,430
Net cash provided by / (used in) investing activities (2,061) 2,231
Financing activities :
Proceeds from issuance of common stock on exercise of employee stock options 6 24
Payment of dividends (2,000) (3,141)
Payment of dividend tax (327) (524)
Net cash used in financing activities (2,321) (3,641)
Effect of exchange rate changes on cash and cash equivalents 95 58
Net increase / (decrease) in cash and cash equivalents 3,830 4,497
Cash and cash equivalents at the beginning 2.1 16,666 12,111
Cash and cash equivalents at the end 2.1 20,591 16,666
Supplementary information :
Restricted cash balance 2.1 268 108
Note : The accompanying notes form an integral part of the consolidated financial statements.
As per our report attached
for B S R & Co.
Chartered Accountants
Firm's Registration No. 101248W

Natrajh Ramakrishna K. V. Kamath S. Gopalakrishnan S. D. Shibulal V. Balakrishnan

Partner Chairman Executive Co-Chairman Chief Executive Officer and Director and Chief Financial Officer
Membership No. 32815 Managing Director

Ann M. Fudge Ashok Vemuri David L. Boyles Deepak M. Satwalekar

Director Director Director Director

Prof. Jeffrey S. Lehman Dr. Omkar Goswami Ravi Venkatesan R. Seshasayee

Director Director Director Director

Bangalore Sridar A. Iyengar Srinath Batni B. G. Srinivas K. Parvatheesam

April 13, 2012 Director Director Director Company Secretary

Financial statements as per IFRS | 37

Additional Information Infosys Annual Report 2011-12

Notes to the consolidated financial statements

1. Company overview and significant Application of accounting policies that require critical accounting
estimates involving complex and subjective judgments and the use
accounting policies of assumptions in these financial statements have been disclosed in
Note 1.5. Accounting estimates could change from period to period.
1.1. Company overview
Actual results could differ from those estimates. Appropriate changes
Infosys Limited (‘Infosys’ or ‘the Company’), along with its controlled in estimates are made as the Management becomes aware of changes
trusts, majority owned and controlled subsidiary, Infosys BPO Limited in circumstances surrounding the estimates. Changes in estimates are
(‘Infosys BPO’) and wholly-owned and controlled subsidiaries, reflected in the financial statements in the period in which changes
Infosys Technologies (Australia) Pty. Limited (‘Infosys Australia’), are made and, if material, their effects are disclosed in the notes to the
Infosys Technologies (China) Co. Limited (‘Infosys China’), consolidated financial statements.
Infosys Consulting India Limited. (‘Infosys Consulting India’),
Infosys Technologies S. de R. L. de C. V. (‘Infosys Mexico’), 1.5. Critical accounting estimates
Infosys Technologies (Sweden) AB (‘Infosys Sweden’), Infosys
Tecnologia do Brasil Ltda (‘Infosys Brasil’), Infosys Public Services Inc. Revenue recognition
(‘Infosys Public Services’) and Infosys Technologies (Shanghai) Co. The Company uses the percentage-of-completion method in accounting
Limited (‘Infosys Shanghai’), is a leading global technology services for its fixed-price contracts. Use of the percentage-of-completion
company. The Infosys group of companies (‘the Group’) provides method requires the Company to estimate the efforts expended to date
business consulting, technology, engineering and outsourcing services as a proportion of the total efforts to be expended. Efforts expended
to help clients build tomorrow's enterprise. In addition, the Group have been used to measure progress towards completion as there is
offers software products for the banking industry. a direct relationship between input and productivity. Provisions for
The Company is a public limited company incorporated and domiciled estimated losses, if any, on uncompleted contracts are recorded in the
in India and has its registered office at Bangalore, Karnataka, India. period in which such losses become probable based on the expected
The Company has its primary listing on the Bombay Stock Exchange contract estimates at the reporting date.
and National Stock Exchange in India. The Company's American Income taxes
Depositary Shares representing equity shares are also listed on
The Company's two major tax jurisdictions are India and the
NASDAQ Global Select Market. The Company's consolidated financial
U.S., though the Company also files tax returns in other overseas
statements were authorized for issuance by the Company's Board of
jurisdictions. Significant judgments are involved in determining the
Directors on April 13, 2012.
provision for income taxes, including amount expected to be paid /
1.2. Basis of preparation of financial statements recovered for uncertain tax positions. Also refer to Note 2.17.
These consolidated financial statements have been prepared in Business combinations and intangible assets
compliance with International Financial Reporting Standards Business combinations are accounted for using IFRS 3 (Revised),
(IFRS) as issued by the International Accounting Standards Board, Business Combinations. IFRS 3 requires the identifiable intangible
under the historical cost convention on the accrual basis except for assets and contingent consideration to be fair valued in order to
certain financial instruments and prepaid gratuity benefits which have ascertain the net fair value of identifiable assets, liabilities and
been measured at fair values. Accounting policies have been applied contingent liabilities of the acquiree. Significant estimates are required
consistently to all periods presented in these consolidated financial to be made in determining the value of contingent consideration and
statements. intangible assets. These valuations are conducted by independent
1.3. Basis of consolidation valuation experts.
Infosys consolidates entities which it owns or controls. Control exists 1.6. Revenue recognition
when the Group has the power to govern the financial and operating The Company derives revenues primarily from software-related
policies of an entity so as to obtain benefits from its activities. services and from the licensing of software products. Arrangements
In assessing control, potential voting rights that are currently with customers for software related services are either on a fixed-price,
exercisable are also taken into account. Subsidiaries are consolidated fixed-timeframe or on a time-and-material basis.
from the date control commencement until the date control ceases.
Revenue on time-and-material contracts are recognized as the
The financial statements of the Group companies are consolidated on a related services are performed and revenue from the end of the last
line-by-line basis and intra-group balances and transactions including billing to the Balance Sheet date is recognized as unbilled revenues.
unrealized gain / loss from such transactions are eliminated upon Revenue from fixed-price, fixed-timeframe contracts, where there is
consolidation. These financial statements are prepared by applying no uncertainty as to measurement or collectability of consideration,
uniform accounting policies in use at the Group. Non-controlling is recognized as per the percentage-of-completion method. When there
interests which represent part of the net profit or loss and net assets is uncertainty as to measurement or ultimate collectability, revenue
of subsidiaries that are not, directly or indirectly, owned or controlled recognition is postponed until such uncertainty is resolved. Efforts
by the Company, are excluded. expended have been used to measure progress towards completion as
1.4. Use of estimates there is a direct relationship between input and productivity. Provisions
for estimated losses, if any, on uncompleted contracts are recorded in
The preparation of the financial statements in conformity with the period in which such losses become probable based on the current
IFRS requires the Management to make estimates, judgments and contract estimates. Costs and earnings in excess of billings are classified
assumptions. These estimates, judgments and assumptions affect the as unbilled revenue while billings in excess of costs and earnings are
application of accounting policies and the reported amounts of assets classified as unearned revenue. Maintenance revenue is recognized
and liabilities, the disclosures of contingent assets and liabilities at the ratably over the term of the underlying maintenance arrangement.
date of the financial statements and reported amounts of revenues and
expenses during the period.

38 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

In arrangements for software development and related services The estimated useful lives of assets for current and comparative
and maintenance services, the Company has applied the guidance periods are as follows :
in IAS 18, Revenue, by applying the revenue recognition criteria Buildings 15 years
for each separately identifiable component of a single transaction. Plant and machinery 5 years
The arrangements generally meet the criteria for considering
Computer equipment 2-5 years
software development and related services as separately identifiable
Furniture and fixtures 5 years
components. For allocating the consideration, the Company has
Vehicles 5 years
measured the revenue in respect of each separable component of a
transaction at its fair value, in accordance with principles given in IAS Depreciation methods, useful lives and residual values are reviewed
18. The price that is regularly charged for an item when sold separately at each reporting date.
is the best evidence of its fair value. In cases where the Company is Advances paid towards the acquisition of property, plant and
unable to establish objective and reliable evidence of fair value for the equipment outstanding at each Balance Sheet date and the cost
software development and related services, the Company has used a of assets not put to use before such date are disclosed under
residual method to allocate the arrangement consideration. In these ‘Capital work-in-progress’. Subsequent expenditures relating
cases the balance of the consideration, after allocating the fair values to property, plant and equipment is capitalized only when it is
of undelivered components of a transaction has been allocated to the probable that future economic benefits associated with these will
delivered components for which specific fair values do not exist. flow to the Group and the cost of the item can be measured reliably.
License fee revenues are recognized when the general revenue Repairs and maintenance costs are recognized in net profit in the
recognition criteria given in IAS 18 are met. Arrangements to Statement of Comprehensive Income when incurred. The cost and
deliver software products generally have three elements : license, related accumulated depreciation are eliminated from the financial
implementation and Annual Technical Services (ATS). The Company statements upon sale or retirement of the asset and the resultant
has applied the principles given in IAS 18 to account for revenues gains or losses are recognized in net profit in the Statement of
from these multiple element arrangements. Objective and reliable Comprehensive Income. Assets to be disposed of are reported at the
evidence of fair value has been established for ATS. Objective and lower of the carrying value or the fair value less cost to sell.
reliable evidence of fair value is the price charged when the element
is sold separately. When other services are provided in conjunction 1.8. Business combinations
with the licensing arrangement and objective and reliable evidence Business combinations have been accounted for using the acquisition
of their fair values have been established, the revenue from such method under the provisions of IFRS 3 (Revised), Business Combinations.
contracts are allocated to each component of the contract in a The cost of an acquisition is measured at the fair value of the assets
manner, whereby revenue is deferred for the undelivered services transferred, equity instruments issued and liabilities incurred or
and the residual amounts are recognized as revenue for delivered assumed at the date of acquisition. The cost of acquisition also
elements. In the absence of objective and reliable evidence of fair includes the fair value of any contingent consideration. Identifiable
value for implementation, the entire arrangement fee for license and assets acquired and liabilities and contingent liabilities assumed in a
implementation is recognized using the percentage-of-completion business combination are measured initially at their fair value on the
method as the implementation is performed. Revenue from client date of acquisition.
training, support and other services arising due to the sale of software
products is recognized as the services are performed. ATS revenue is Transaction costs that the Group incurs in connection with a business
recognized ratably over the period in which the services are rendered. combination such as finders' fees, legal fees, due diligence fees,
and other professional and consulting fees are expensed as incurred.
Advances received for services and products are reported as client
deposits until all conditions for revenue recognition are met. 1.9. Goodwill
The Company accounts for volume discounts and pricing incentives Goodwill represents the cost of business acquisition in excess of the
to customers as a reduction of revenue based on the ratable allocation Group's interest in the net fair value of identifiable assets, liabilities
of the discounts / incentives amount to each of the underlying revenue and contingent liabilities of the acquiree. When the net fair value of the
transaction that results in progress by the customer towards earning identifiable assets, liabilities and contingent liabilities acquired exceeds
the discount / incentive. Also, when the level of discount varies with the cost of business acquisition, a gain is recognized immediately in
increases in levels of revenue transactions, the Company recognizes net profit in the Statement of Comprehensive Income. Goodwill is
the liability based on its estimate of the customer's future purchases. measured at cost less accumulated impairment losses.
If it is probable that the criteria for the discount will not be met, or
if the amount thereof cannot be estimated reliably, then discount is 1.10. Intangible assets
not recognized until the payment is probable and the amount can be Intangible assets are stated at cost less accumulated amortization and
estimated reliably. The Company recognizes changes in the estimated impairments. Intangible assets are amortized over their respective
amount of obligations for discounts in the period in which the change individual estimated useful lives on a straight-line basis, from the
occurs. The discounts are passed on to the customer either as direct date that they are available for use. The estimated useful life of an
payments or as a reduction of payments due from the customer. identifiable intangible asset is based on a number of factors including
The Company presents revenues net of value-added taxes in its the effects of obsolescence, demand, competition, and other economic
Statement of Comprehensive Income. factors (such as the stability of the industry, and known technological
advances), and the level of maintenance expenditures required to
1.7. Property, plant and equipment obtain the expected future cash flows from the asset.
Property, plant and equipment are stated at cost, less accumulated Research costs are expensed as incurred. Software product development
depreciation and impairments, if any. The direct costs are capitalized costs are expensed as incurred unless technical and commercial
until the property, plant and equipment are ready for use, as intended feasibility of the project is demonstrated, future economic benefits are
by the Management. The Company depreciates property, plant and probable, the Company has an intention and ability to complete and
equipment over their estimated useful lives using the straight-line use or sell the software and the costs can be measured reliably.
method.

Financial statements as per IFRS | 39

Additional Information Infosys Annual Report 2011-12

The costs which can be capitalized include the cost of material, The Company holds derivative financial instruments such as foreign
direct labor, overhead costs that are directly attributable to preparing exchange forward and option contracts to mitigate the risk of changes
the asset for its intended use. Research and development costs and in foreign exchange rates on trade receivables and forecasted cash
software development costs incurred under contractual arrangements flows denominated in certain foreign currencies. The counterparty for
with customers are accounted as cost of sales. these contracts is generally a bank or a financial institution. Although
the Company believes that these financial instruments constitute
1.11. Financial instruments hedges from an economic perspective, they do not qualify for hedge
The financial instruments of the Group are classified in the following accounting under IAS 39, Financial Instruments : Recognition and
categories : non-derivative financial instruments comprising of loans Measurement. Any derivative that is either not designated a hedge,
and receivables, available-for-sale financial assets and trade and other or is so designated but is ineffective per IAS 39, is categorized as a
payables; derivative financial instruments under the category of financial asset, at fair value through profit or loss. Derivatives are
financial assets or financial liabilities at fair value through profit or recognized initially at fair value and attributable transaction costs are
loss; share capital and treasury shares. The classification of financial recognized in net profit in the Statement of Comprehensive Income
instruments depends on the purpose for which those were acquired. when incurred. Subsequent to initial recognition, derivatives are
Management determines the classification of its financial instruments measured at fair value through profit or loss and the resultant exchange
at initial recognition. gains or losses are included in other income. Assets / liabilities in this
category are presented as current assets / current liabilities if they are
Non-derivative financial instruments either held for trading or are expected to be realized within 12 months
Loans and receivables after the Balance Sheet date.
Loans and receivables are non-derivative financial assets with fixed
Share capital and treasury shares
or determinable payments that are not quoted in an active market.
They are presented as current assets, except for those maturing later Ordinary shares
than 12 months after the Balance Sheet date which are presented as Ordinary shares are classified as equity. Incremental costs directly
non-current assets. Loans and receivables are measured initially at fair attributable to the issuance of new ordinary shares and share options
value plus transaction costs and subsequently carried at amortized are recognized as a deduction from equity, net of any tax effects.
cost using the effective interest method, less any impairment loss Treasury shares
or provisions for doubtful accounts. Loans and receivables are
When any entity within the Group purchases the Company's ordinary
represented by trade receivables, net of allowances for impairment,
shares, the consideration paid including any directly attributable
unbilled revenue, cash and cash equivalents, prepayments, certificates
incremental cost is presented as a deduction from total equity,
of deposit and other assets. Cash and cash equivalents comprise cash
until they are canceled, sold or reissued. When treasury shares are
and bank deposits and deposits with corporations. The Company
sold or reissued subsequently, the amount received is recognized
considers all highly liquid investments with a remaining maturity
as an increase in equity, and the resulting surplus or deficit on the
at the date of purchase of three months or less and that are readily
transaction is transferred to / from retained earnings.
convertible to known amounts of cash to be cash equivalents.
Certificates of deposit are a negotiable money market instrument for 1.12. Impairment
funds deposited at a bank or other eligible financial institution for a
specified time period. Financial assets
Available-for-sale financial assets The Group assesses at each Balance Sheet date whether there is
Available-for-sale financial assets are non-derivatives that are either objective evidence that a financial asset or a group of financial assets is
designated in this category or are not classified in any of the other impaired. A financial asset is considered impaired if objective evidence
categories. Available-for-sale financial assets are recognized initially indicates that one or more events have had a negative effect on the
at fair value plus transactions costs. Subsequent to initial recognition estimated future cash flows of that asset. Individually significant
these are measured at fair value and changes therein, other than financial assets are tested for impairment on an individual basis. The
impairment losses and foreign exchange gains and losses on remaining financial assets are assessed collectively in groups that share
available-for-sale monetary items are recognized directly in other similar credit risk characteristics.
comprehensive income. When an investment is de-recognized, the Loans and receivables
cumulative gain or loss in other comprehensive income is transferred Impairment loss in respect of loans and receivables measured at
to net profit in the Statement of Comprehensive Income. These are amortized cost are calculated as the difference between their carrying
presented as current assets unless the Management intends to dispose amount, and the present value of the estimated future cash flows
of the assets after 12 months from the Balance Sheet date. discounted at the original effective interest rate. Such impairment loss
Trade and other payables is recognized in net profit in the Statement of Comprehensive Income.
Trade and other payables are initially recognized at fair value, and Available-for-sale financial assets
subsequently carried at amortized cost using the effective interest Significant or prolonged decline in the fair value of the security
method. below its cost and the disappearance of an active trading market
for the security are objective evidence that the security is impaired.
Derivative financial instruments
An impairment loss in respect of an available-for-sale financial asset is
Financial assets or financial liabilities, at fair value through calculated by reference to its fair value and is recognized in net profit
profit or loss in the Statement of Comprehensive Income. The cumulative loss that
This category has two sub-categories wherein financial assets or was recognized in other comprehensive income is transferred to net
financial liabilities are held for trading or are designated as such profit in the Statement of Comprehensive Income upon impairment.
upon initial recognition. A financial asset is classified as held for
trading if it is acquired principally for the purpose of selling in the
short- term. Derivatives are categorized as held for trading unless they
are designated as hedges.

40 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Non-financial assets 1.14. Provisions

Goodwill A provision is recognized if, as a result of a past event, the Group has a
Goodwill is tested for impairment on an annual basis and whenever there present legal or constructive obligation that can be estimated reliably, and
is an indication that goodwill may be impaired, relying on a number of it is probable that an outflow of economic benefits will be required to settle
factors including operating results, business plans and future cash flows. the obligation. Provisions are determined by discounting the expected
For the purpose of impairment testing, the goodwill acquired in a business future cash flows at a pre-tax rate that reflects current market assessments
combination is allocated to the group's Cash Generating Units (CGU), which of the time value of money and the risks specific to the liability.
are expected to benefit from the association of the business combination.
Post-sales client support
A CGU is the smallest identifiable group of assets that generates cash
inflows that are largely independent of the cash inflows from other assets The Company provides its clients with a fixed-period post-sales
or group of assets. Impairment occurs when the carrying amount of a CGU support for corrections of errors and telephone support on all its
including the goodwill, exceeds the estimated recoverable amount of the fixed-price, fixed-timeframe contracts. Costs associated with such
CGU. The recoverable amount of a CGU is the higher of its fair value less support services are accrued at the time related revenues are recorded
cost to sell and its value-in-use. Value-in-use is the present value of future and included in cost of sales. The Company estimates such costs based
cash flows expected to be derived from the CGU. on historical experience and estimates are reviewed on a periodic basis
for any material changes in assumptions and likelihood of occurrence.
Total impairment loss of a CGU is allocated first to reduce the carrying
amount of goodwill allocated to the CGU and then to the other assets Onerous contracts
of the CGU pro-rata on the basis of the carrying amount of each asset Provisions for onerous contracts are recognized when the expected
in the CGU. An impairment loss on goodwill is recognized in net benefits to be derived by the Group from a contract are lower than the
profit in the Statement of Comprehensive Income and is not reversed unavoidable costs of meeting the future obligations under the contract.
in the subsequent period. The provision is measured at the present value of the lower of the
Intangible assets and property, plant and equipment expected cost of terminating the contract and the expected net cost
Intangible assets and property, plant and equipment are evaluated for of continuing with the contract. Before a provision is established the
recoverability whenever events or changes in circumstances indicate Group recognizes any impairment loss on the assets associated with
that their carrying amounts may not be recoverable. For the purpose of that contract.
impairment testing, the recoverable amount, which is the higher of the fair
value less cost to sell and the value-in-use, is determined on an individual 1.15. Foreign currency
asset basis unless the asset does not generate cash flows that are largely Functional currency
independent of those from other assets. In such cases, the recoverable
The functional currency of Infosys Limited, Infosys BPO Limited and
amount is determined for the CGU to which the asset belongs.
Infosys Consulting India is the Indian rupee. The functional currencies
If such assets are considered to be impaired, the impairment to be for Infosys Australia, Infosys China, Infosys Mexico, Infosys Sweden,
recognized in net profit in the Statement of Comprehensive Income Infosys Brasil, Infosys Public Services and Infosys Shanghai are the
is measured by the amount by which the carrying value of the assets respective local currencies. These financial statements are presented
exceeds the estimated recoverable amount of the asset. in Indian rupees (rounded off to crore; one crore equals 10 million).
Reversal of impairment loss Transactions and translations
An impairment loss for financial assets is reversed if the reversal can Foreign-currency denominated monetary assets and liabilities are
be related objectively to an event occurring after the impairment loss translated into the relevant functional currency at exchange rates in
was recognized. An impairment loss in respect of goodwill is not effect at the Balance Sheet date. The gains or losses resulting from such
reversed. In respect of other assets, an impairment loss is reversed translations are included in net profit in the Statement of Comprehensive
if there has been a change in the estimates used to determine the Income. Non-monetary assets and non-monetary liabilities denominated
recoverable amount. The carrying amount of an asset other than in a foreign currency and measured at fair value are translated at the
goodwill is increased to its revised recoverable amount, provided exchange rate prevalent at the date when the fair value was determined.
that this amount does not exceed the carrying amount that would Non-monetary assets and non-monetary liabilities denominated in a
have been determined (net of any accumulated amortization or foreign currency and measured at historical cost are translated at the
depreciation) had no impairment loss been recognized for the asset exchange rate prevalent at the date of transaction.
in prior years. A reversal of impairment loss for an asset other than
Transaction gains or losses realized upon settlement of foreign
goodwill and available-for-sale financial assets that are equity securities
currency transactions are included in determining net profit for the
is recognized in net profit in the Statement of Comprehensive Income.
period in which the transaction is settled. Revenue, expense and Cash
For available-for-sale financial assets that are equity securities,
Flow items denominated in foreign currencies are translated into the
the reversal is recognized in other comprehensive income.
relevant functional currencies using the exchange rate in effect on the
1.13. Fair value of financial instruments date of the transaction.
In determining the fair value of its financial instruments, the Company The translation of financial statements of the foreign subsidiaries to
uses a variety of methods and assumptions that are based on market the functional currency of the Company is performed for assets and
conditions and risks existing at each reporting date. The methods liabilities using the exchange rate in effect at the Balance Sheet date
used to determine fair value include discounted Cash Flow analysis, and for revenue, expense and Cash Flow items using the average
available quoted market prices and dealer quotes. All methods of exchange rate for the respective periods. The gains or losses resulting
assessing fair value result in general approximation of value, and such from such translation are included in currency translation reserves
value may never actually be realized. under other components of equity. When a subsidiary is disposed of,
in part or in full, the relevant amount is transferred to net profit in the
For all other financial instruments, the carrying amounts approximate
Statement of Comprehensive Income.
fair value due to the short maturity of those instruments. The fair value
of securities, which do not have an active market and where it is not Goodwill and fair value adjustments arising on the acquisition of a
practicable to determine the fair values with sufficient reliability, are foreign entity are treated as assets and liabilities of the foreign entity
carried at cost, less impairment. and translated at the exchange rate in effect at the Balance Sheet date.

Financial statements as per IFRS | 41

Additional Information Infosys Annual Report 2011-12

1.16. Earnings per equity share The Gratuity Plan provides a lump-sum payment to vested employees
at retirement, death, incapacitation or termination of employment,
Basic earnings per equity share is computed by dividing the net profit
of an amount based on the respective employee's salary and the tenure
attributable to the equity holders of the Company by the weighted
of employment.
average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net Liabilities with regard to the Gratuity Plan are determined by actuarial
profit attributable to the equity holders of the Company by the valuation, performed by an independent actuary, at each Balance
weighted average number of equity shares considered for deriving Sheet date using the projected unit credit method. The Company fully
basic earnings per equity share and also the weighted average number contributes all ascertained liabilities to the Infosys Limited Employees'
of equity shares that could have been issued upon conversion of all Gratuity Fund Trust (‘the Trust’). In case of Infosys BPO, contributions
dilutive potential equity shares. The diluted potential equity shares are are made to the Infosys BPO's Employees' Gratuity Fund Trust. Trustees
adjusted for the proceeds receivable had the equity shares been actually administer contributions made to the Trust and contributions are invested
issued at fair value (i.e. the average market value of the outstanding in a scheme with Life Insurance Corporation as permitted by the law.
equity shares). Dilutive potential equity shares are deemed converted The Group recognizes the net obligation of a defined benefit plan in
as of the beginning of the period, unless issued at a later date. its Balance Sheet as an asset or liability, respectively, in accordance
Dilutive potential equity shares are determined independently for each with IAS 19, Employee Benefits. The discount rate is based on the
period presented. government securities yield. Actuarial gains and losses arising from
The number of equity shares and potentially dilutive equity shares are experience adjustments and changes in actuarial assumptions are
adjusted retrospectively for all periods presented for any share splits charged or credited to net profit in the Statement of Comprehensive
and bonus shares issues including for changes effected prior to the Income in the period in which they arise. When the computation
approval of the financial statements by the Board of Directors. results in a benefit to the Group, the recognized asset is limited to
the net total of any unrecognized past service costs and the present
1.17. Income taxes value of any future refunds from the plan or reductions in future
Income tax expense comprises current and deferred income tax. contributions to the plan.
Income tax expense is recognized in net profit in the Statement of 1.18.2. Superannuation
Comprehensive Income except to the extent that it relates to items
recognized directly in equity, in which case it is recognized in Certain employees of Infosys are also participants in a defined
other comprehensive income. Current income tax for current and contribution plan. The Company has no further obligations to the Plan
prior periods is recognized at the amount expected to be paid to or beyond its monthly contributions. Certain employees of Infosys BPO
recovered from the tax authorities, using the tax rates and tax laws are also eligible to avail the superannuation benefit. Infosys BPO has
that have been enacted or substantively enacted by the Balance Sheet no further obligations to the superannuation plan beyond its monthly
date. Deferred income tax assets and liabilities are recognized for all contribution which are periodically contributed to a trust fund,
temporary differences arising between the tax bases of assets and the corpus of which is invested with the Life Insurance Corporation of India.
liabilities and their carrying amounts in the financial statements except Certain employees of Infosys Australia are also eligible for
when the deferred income tax arises from the initial recognition of superannuation benefit. Infosys Australia has no further obligations
goodwill or an asset or liability in a transaction that is not a business to the superannuation plan beyond its monthly contribution.
combination and affects neither accounting nor taxable profit or loss
at the time of the transaction. Deferred tax assets are reviewed at
1.18.3. Provident fund
each reporting date and are reduced to the extent that it is no longer Eligible employees of Infosys receive benefits from a provident
probable that the related tax benefit will be realized. fund, which is a defined benefit plan. Both the employee and the
Company make monthly contributions to the provident fund plan
Deferred income tax assets and liabilities are measured using tax rates
equal to a specified percentage of the covered employee's salary.
and tax laws that have been enacted or substantively enacted by the
The Company contributes a part of the contributions to the Infosys
Balance Sheet date and are expected to apply to taxable income in
Limited Employees' Provident Fund Trust. The Trust invests in specific
the years in which those temporary differences are expected to be
designated instruments as permitted by Indian law. The remaining
recovered or settled. The effect of changes in tax rates on deferred
portion is contributed to the government administered pension fund.
income tax assets and liabilities is recognized as income or expense in
The rate at which the annual interest is payable to the beneficiaries by
the period that includes the enactment or the substantive enactment
the Trust is being administered by the government. The Company has
date. A deferred income tax asset is recognized to the extent that
an obligation to make good the shortfall, if any, between the return
it is probable that future taxable profit will be available against
from the investments of the Trust and the notified interest rate.
which the deductible temporary differences and tax losses can be
utilized. Deferred income taxes are not provided on the undistributed In respect of Infosys BPO, eligible employees receive benefits from a
earnings of subsidiaries and branches where it is expected that the provident fund, which is a defined contribution plan. Both the employee
earnings of the subsidiary or branch will not be distributed in the and Infosys BPO make monthly contributions to this provident fund
foreseeable future. The Company offsets current tax assets and current plan equal to a specified percentage of the covered employee's salary.
tax liabilities, where it has a legally enforceable right to set off the Amounts collected under the provident fund plan are deposited in a
recognized amounts and where it intends either to settle on a net government administered provident fund. The Company has no further
basis, or to realize the asset and settle the liability simultaneously. obligation to the plan beyond its monthly contributions.
Tax benefits of deductions earned on exercise of employee share
1.18.4 . Compensated absences
options in excess of compensation charged to income are credited
to share premium. The Group has a policy on compensated absences which are both
accumulating and non-accumulating in nature. The expected cost
1.18. Employee benefits of accumulating compensated absences is measured based on the
additional amount expected to be paid / availed as a result of the
1.18.1. Gratuity unused entitlement that has accumulated at the Balance Sheet date.
In accordance with the Payment of Gratuity Act, 1972, Infosys Expense on non-accumulating compensated absences is recognized
provides for gratuity, a defined benefit retirement plan (‘the Gratuity in the period in which the absences occur.
Plan’) covering eligible employees.

42 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

1.19. Share-based compensation IFRS 9 has fewer classification and measurement categories as compared
to IAS 39 and has eliminated the categories of held to maturity, available
The Group recognizes compensation expense relating to share-based
for sale and loans and receivables. Further it eliminates the rule-based
payments in net profit using a fair-value measurement method in
requirement of segregating embedded derivatives and tainting rules
accordance with IFRS 2, Share-Based Payment. Under the fair value
pertaining to held to maturity investments. For an investment in
method, the estimated fair value of awards is charged to income on a
an equity instrument which is not held for trading, IFRS 9 permits
straight-line basis over the requisite service period for each separately
an irrevocable election, on initial recognition and on an individual
vesting portion of the award as if the award was in-substance, multiple
share-by-share basis, to present all fair value changes from the
awards. The Group includes a forfeiture estimate in the amount of
investment in other comprehensive income. No amount recognized
compensation expense being recognized.
in other comprehensive income would ever be re-classified to profit
The fair value of each option is estimated on the date of grant using or loss. IFRS 9, was further amended in October 2010, and such
the Black-Scholes-Merton valuation model. The expected term of an amendment introduced requirements on accounting for financial
option is estimated based on the vesting term and contractual term of liabilities. This amendment addresses the issue of volatility in the
the option, as well as expected exercise behavior of the employee who profit or loss due to changes in the fair value of an entity's own debt.
receives the option. Expected volatility during the expected term of It requires the entity, which chooses to measure a liability at fair
the option is based on historical volatility, during a period equivalent value, to present the portion of the fair value change attributable
to the expected term of the option, of the observed market prices to the entity's own credit risk in the other comprehensive income.
of the Company's publicly traded equity shares. Expected dividends The Company is required to adopt IFRS 9 by accounting year
during the expected term of the option are based on recent dividend commencing April 1, 2015. The Company is currently evaluating the
activity. Risk-free interest rates are based on the government securities requirements of IFRS 9, and has not yet determined the impact on the
yield in effect at the time of the grant over the expected term. consolidated financial statements.
1.20. Dividends IFRS 10 : Consolidated Financial Statements, IFRS 11 : Joint
Arrangements and IFRS 12 : Disclosure of Interests in Other Entities
Final dividends on shares are recorded as a liability on the date of
– In May 2011, the International Accounting Standards Board issued
approval by the shareholders and interim dividends are recorded as a
IFRS 10, IFRS 11 and IFRS 12. The effective date for IFRS 10, IFRS 11
liability on the date of declaration by the Company's Board of Directors.
and IFRS 12 is annual periods beginning on or after January 1, 2013
1.21. Operating profit with early adoption permitted.
Operating profit for the Group is computed considering the revenues, IFRS 10 : Consolidated Financial Statements – This builds on
net of cost of sales, selling and marketing expenses and administrative existing principles by identifying the concept of control as the
expenses. determining factor in whether an entity should be included within
the consolidated financial statements of the parent company. IFRS
1.22. Other income 10 replaces the consolidation requirements in SIC-12 Consolidation
Other income is comprised primarily of interest income and dividend of Special Purpose Entities and IAS 27 Consolidated and Separate
income. Interest income is recognized using the effective interest Financial Statements. The standard provides additional guidance for
method. Dividend income is recognized when the right to receive the determination of control in cases of ambiguity such as franchisor-
payment is established. franchisee relationship, de facto agent, silos and potential voting
rights.
1.23. Leases IFRS 11 : Joint Arrangements – This determines the nature
Leases under which the Company assumes substantially all the of an arrangement by focusing on the rights and obligations
risks and rewards of ownership are classified as finance leases. of the arrangement, rather than its legal form. IFRS 11
When acquired, such assets are capitalized at fair value or present replaces IAS 31 Interests in Joint Ventures and SIC-13
value of the minimum lease payments at the inception of the lease, Jointly-controlled Entities-Non-monetary Contributions by
whichever is lower. Lease payments under operating leases are Venturers. IFRS 11 addresses only forms of joint arrangements
recognized as an expense on a straight-line basis in net profit in the (joint operations and joint ventures) where there is joint control
Statement of Comprehensive Income over the lease term. whereas IAS 31 had identified three forms of joint ventures, namely
jointly controlled operations, jointly controlled assets and jointly
1.24. Government grants controlled entities. The standard addresses inconsistencies in the
The Group recognizes government grants only when there is reporting of joint arrangements by requiring a single method to
reasonable assurance that the conditions attached to them shall be account for interests in jointly controlled entities, which is the equity
complied with, and the grants will be received. Government grants method.
related to depreciable assets are treated as deferred income and are IFRS 12 : Disclosure of Interests in Other Entities – This is a new and
recognized in net profit in the Statement of Comprehensive Income comprehensive standard on disclosure requirements for all forms of
on a systematic and rational basis over the useful life of the asset. interests in other entities, including joint arrangements, associates,
Government grants related to revenue are recognized on a systematic special purpose vehicles and other off Balance Sheet vehicles.
basis in net profit in the Statement of Comprehensive Income over the A major requirement of IFRS 12 is that an entity needs to disclose the
periods necessary to match them with the related costs which they are significant judgments and assumptions it has made in determining :
intended to compensate.
• Whether it has control, joint control or significant influence over
1.25. Recent accounting pronouncements another entity; and
• the type of joint arrangement when the joint arrangement is
1.25.1. Standards issued but not yet effective structured through a separate vehicle.
IFRS 9 : Financial Instruments – In November 2009, the International
Accounting Standards Board issued IFRS 9, Financial Instruments :
Recognition and Measurement, to reduce the complexity of the current
rules on financial instruments as mandated in IAS 39. The effective date
for IFRS 9 is annual periods beginning on or after January 1, 2015 with
early adoption permitted.

Financial statements as per IFRS | 43

Additional Information Infosys Annual Report 2011-12

IFRS 12 also expands the disclosure requirements for subsidiaries The amendments need to be adopted retrospectively. The Company is
with non-controlling interest, joint arrangements and associates required to adopt IAS 19 (Amended) by accounting year commencing
that are individually material. IFRS 12 introduces the term April 1, 2013. The Company is currently evaluating the requirements
‘structured entity’ by replacing ‘Special Purpose Entities’ and requires of IAS 19 (Amended) and has not yet determined the impact on the
enhanced disclosures by way of nature and extent of, and changes consolidated financial statements.
in, the risks associated with its interests in both its consolidated and
unconsolidated structured entities. 2. Notes to the consolidated financial
The Company will be adopting IFRS 10, IFRS 11 and IFRS 12 effective statements
April 1, 2013. The Company is currently evaluating the requirements
of IFRS 10, IFRS 11 and IFRS 12, and has not yet determined the 2.1. Cash and cash equivalents
impact on the consolidated financial statements. Cash and cash equivalents consist of the following :
IFRS 13 : Fair Value Measurement – In May 2011, the International in ` crore
Accounting Standards Board issued IFRS 13, Fair Value Measurement
Particulars As of March 31,
to provide specific guidance on fair value measurement and requires
2012 2011
enhanced disclosures for all assets and liabilities measured at fair
Cash and bank deposits 19,059 15,095
value, and not restricted to financial assets and liabilities. The
Deposits with corporations 1,532 1,571
standard introduces a precise definition of fair value and a consistent
measure for fair valuation across assets and liabilities, with a few 20,591 16,666
specified exceptions. The effective date for IFRS 13 is annual periods Cash and cash equivalents as of March 31, 2012 and March 31, 2011
beginning on or after January 1, 2013 with early adoption permitted. include restricted cash and bank balances of ` 268 crore and ` 108
The Company is required to adopt IFRS 13 by accounting year crore, respectively. The restrictions are primarily on account of cash and
commencing April 1, 2013 and is currently evaluating the requirements bank balances held by irrevocable trusts controlled by the Company,
of IFRS 13, and has not yet determined the impact on the consolidated and bank balances held as margin money deposits against guarantees
financial statements. and balances held in unclaimed dividend bank accounts.
IAS 1 (Amended) : Presentation of Financial Statements – In June 2011, The deposits maintained by the Group with banks and corporations
the International Accounting Standard Board published amendments comprise of time deposits, which can be withdrawn by the Group
to IAS 1 Presentation of Financial Statements. The amendments to IAS at any point without prior notice or penalty on the principal.
1 Presentation of Financial Statements, require companies preparing The following table provides details of cash and cash equivalents :
financial statements in accordance with IFRS to group items within in ` crore
other comprehensive income that may be re-classified to the profit Particulars As of March 31,
or loss separately from those items which would not be recyclable in 2012 2011
the profit or loss section of the income statement. It also requires the Current Accounts
tax associated with items presented before tax to be shown separately ABN Amro Bank, China 41 17
for each of the two groups of other comprehensive income items ABN Amro Bank, China
(without changing the option to present items of other comprehensive (U.S. Dollar account) 2 24
income either before tax or net of tax). ANZ Bank, Taiwan 2 3
The amendments also reaffirm existing requirements that items Bank of America, Mexico 5 4
in other comprehensive income and profit or loss should be Bank of America, U.S. 598 296
presented as either a single statement or two consecutive statements. Banamex, Mexico 1 2
This amendment is applicable to annual periods beginning on or after Citibank N.A., Australia 89 61
July 1, 2012, with early adoption permitted. The Company is required to Citibank N.A., Brazil 7 5
adopt IAS 1 (Amended) by accounting year commencing April 1, 2013. Citibank N.A., China 2 –
The Company has evaluated the requirements of IAS 1 (Amended) and Citibank N.A., China
the Company does not believe that the adoption of IAS 1 (Amended) (U.S. Dollar account) 12 11
will have a material effect on its consolidated financial statements. Citibank N.A., Czech Republic
IAS 19 (Amended) Employee Benefits : In June 2011, International (U.S. Dollar account) 1 –
Accounting Standards Board issued IAS 19 (Amended), Employee Citibank N.A., Czech Republic
Benefits. The effective date for adoption of IAS 19 (Amended) (Euro account) 4 –
is annual periods beginning on or after January 1, 2013, though early Citibank N.A., Czech Republic 1 1
adoption is permitted. Citibank N.A., New Zealand 7 2
IAS 19 (Amended) has eliminated an option to defer the recognition Citibank N.A., Japan 9 17
of gains and losses through re-measurements and requires such gain Citibank N.A., India 1 2
or loss to be recognized through other comprehensive income in the Citibank N.A., India, Unclaimed
year of occurrence to reduce volatility. The amended standard requires dividend account – 1
immediate recognition of effects of any plan amendments. Further it Citibank N.A., Thailand 1 1
also requires assets in profit or loss to be restricted to government bond Deustche Bank, India 10 12
yields or corporate bond yields, considered for valuation of Projected Deutsche Bank, Czech Republic 1 1
Benefit Obligation, irrespective of actual portfolio allocations. Deutsche Bank, Czech Republic
The actual return from the portfolio in excess of or less than such (U.S. Dollar account) 2 –
yields is recognized through other comprehensive income. Deutsche Bank, Czech Republic
These amendments enhance the disclosure requirements for defined (Euro account) 1 –
benefit plans by requiring information about the characteristics of Deutsche Bank, Belgium 6 5
defined benefit plans and risks that entities are exposed to through Deutsche Bank, France 4 3
participation in those plans. Deutsche Bank, Germany 12 5
Deutsche Bank, Netherlands 3 2

44 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

in ` crore in ` crore
Particulars As of March 31, Particulars As of March 31,
2012 2011 2012 2011
Deustche Bank, Philippines – 1 HSBC Bank, U.K. 5 18
Deustche Bank, Philippines ICICI Bank 1,504 788
(U.S. Dollar account) 3 1 IDBI Bank 1,030 770
Deustche Bank, Poland 1 1 ING Vysya Bank 82 –
Deustche Bank, Poland (Euro account) 1 2 Indian Overseas Bank 600 518
Deutsche Bank, Spain 1 1 Jammu and Kashmir Bank 25 12
Deutsche Bank, Singapore 8 3 Kotak Mahindra Bank 175 25
Deutsche Bank, Switzerland 1 1 National Australia Bank Limited,
Deutsche Bank, U.K. 32 40 Australia 67 546
Deustche Bank – EEFC (Euro account) 9 8 Nordbanken, Sweden 1 1
Deustche Bank – EEFC Oriental Bank of Commerce 714 653
(Swiss Franc account) 2 2 Punjab National Bank 1,314 1,493
Deustche Bank – EEFC Ratnakar Bank 5 –
(U.S. Dollar account) 23 143 South Indian Bank 60 50
HSBC Bank, U.K. – 10 State Bank of Hyderabad 580 255
HDFC Bank – Unclaimed dividend State Bank of India 61 457
account 1 1 State Bank of Mysore 249 354
ICICI Bank, India 20 32 Syndicate Bank 550 504
ICICI Bank, U.K. 2 1 Union Bank of India 602 631
ICICI Bank – EEFC Vijaya Bank 153 144
(U.K. Pound Sterling account) 1 1 Yes Bank 141 33
ICICI Bank – EEFC (U.S. Dollar account) 32 22 18,068 14,318
ICICI Bank – Unclaimed dividend account 1 1 Deposits with corporations
National Australia Bank Limited, HDFC Limited 1,532 1,571
Australia 3 1 1,532 1,571
Nordbanken, Sweden 3 5 Total 20,591 16,666
Punjab National Bank, India 1 –
Royal Bank of Canada, Canada 5 23 2.2. Available-for-sale financial assets
State Bank of India 1 – Investments in liquid mutual fund units and unlisted equity securities
Shanghai Pudong Development Bank, are classified as available-for-sale financial assets.
China – 2
Cost and fair value of investment in liquid mutual fund units and
Standard Chartered Bank, UAE 1 –
unlisted equity securities are as follows :
The Bank of Tokyo – Mitsubishi UFJ
Ltd., Japan 1 – in ` crore
Commonwealth Bank of Australia, As of March 31,
Australia 4 – 2012 2011
Bank of New Zealand 12 – Current
991 777 Liquid mutual fund units :
Deposit Accounts Cost and fair value 32 21
ABN Amro Bank, China – 14 Non Current
Andhra Bank 510 399 Unlisted equity securities :
Allahabad Bank 852 561 Cost 4 4
Axis Bank 806 536 Gross unrealized holding gains 8 19
Bank of America – 82 Fair value 12 23
Bank of America, Mexico 6 17 Total available-for-sale financial assets 44 44
Bank of Baroda 1,733 1,100 During February 2010, Infosys sold 32,31,151 shares of OnMobile
Bank of India 1,500 1,197 Systems Inc., U.S., at a price of ` 166.58 per share, derived from
Bank of Maharashtra 475 506 quoted prices of the underlying marketable equity securities.
Bank of China, China 25 –
As of March 31, 2011 the remaining 21,54,100 shares were fair valued
Canara Bank 1,615 1,329
at ` 23 crore and the resultant unrealized loss of ` 12 crore, net of taxes
Central Bank of India 752 354
of ` 3 crore has been recognized in other comprehensive income for
Corporation Bank 395 295 the year ended March 31, 2011.
Citibank, China 23 –
Citibank N.A., Czech Republic – 5 As of March 31, 2012 the 21,54,100 shares were fair valued at ` 12 crore
and the resultant unrealized loss of ` 8 crore, net of taxes of ` 3 crore
Citibank N.A., Czech Republic, U.S. – 1
has been recognized in other comprehensive income for the year ended
Citibank Brazil – 3
March 31, 2012. The fair value of ` 12 crore has been derived based on
Deustche Bank, Poland 41 21
an agreed upon exchange ratio between these unlisted equity securities
DBS Bank 40 –
and quoted prices of the underlying marketable equity securities.
HDFC Bank 1,357 646
Federal Bank 20 –

Financial statements as per IFRS | 45

Additional Information Infosys Annual Report 2011-12

2.3. Business combinations The identified intangible customer contracts and relationships are
being amortized over a period of 10 years based on the Management's
During the year ended March 31, 2010, Infosys BPO acquired 100% of
estimate of the useful life of the assets.
the voting interests in McCamish Systems LLC (McCamish), a business
process solutions provider based in Atlanta, Georgia, in the U.S. The transaction costs of ` 5 crore related to the acquisition have been
The business acquisition was conducted by entering into a Membership included under cost of sales in the Statement of Comprehensive
Interest Purchase Agreement for a cash consideration of ` 173 crore Income.
and a contingent consideration of upto ` 93 crore. The fair value of
contingent consideration and its undiscounted value on the date of 2.4. Prepayments and other assets
acquisition were ` 40 crore and ` 67 crore, respectively. The payment Prepayments and other assets consist of the following :
of contingent consideration is dependent upon the achievement of in ` crore
certain revenue targets and net margin targets by McCamish over Particulars As of March 31,
a period of four years ending March 31, 2014. Further, contingent 2012 2011
to McCamish signing any deal with a customer with total revenues Current
of US $100 million or more, the aforesaid period will be extended Rental deposits 16 43
by two years. The total contingent consideration can range between Security deposits with service providers 37 63
` 67 crore and ` 93 crore. Loans to employees 160 137
The fair value of the contingent consideration is determined by Prepaid expenses (1) 51 47
discounting the estimated amount payable to the previous owners of Interest accrued and not due 39 21
McCamish on achievement of certain financial targets. The key inputs Withholding taxes (1) 682 548
used for the determination of fair value of contingent consideration Advance payments to vendors for
are the discount rate of 13.9% and the probabilities of achievement supply of goods (1) 36 36
of the net margin and the revenue targets ranging from 50% to 100%. Deposit with corporation 492 –
During the year ended March 31, 2012, the liability related to Other assets 10 22
contingent consideration increased by ` 7 crore due to passage of time. 1,523 917
On January 4, 2012, Infosys BPO acquired 100% of the voting Non-current
interest in Portland Group Pty. Ltd., a strategic sourcing and category Loans to employees 6 4
management services provider based in Australia. The business Deposit with corporation 58 437
acquisition was conducted by entering into a share sale agreement Rental deposits 39 –
for a cash consideration of ` 200 crore. Security deposits with service providers 29 –
This business acquisition would strengthen Infosys BPO's capabilities Prepaid expenses (1) 15 20
and domain expertise in sourcing and procurement practice and its Prepaid gratuity and other benefits (1) 15 2
service offering in the strategic sourcing and category management 162 463
functions. Consequently, the excess of the purchase consideration paid 1,685 1,380
over the fair value of assets acquired has been accounted for as goodwill. Financial assets in prepayments and
other assets 886 727
The purchase price has been allocated based on the Management's (1)
Non financial assets
estimates and an independent appraisal of fair values as follows :
in ` crore Withholding taxes primarily consist of input tax credits. Other assets
primarily represent travel advances and other recoverables from
Component Acquiree's Fair value Purchase
customers. Security deposits with service providers relate principally
carrying adjustments price
to leased telephone lines and electricity supplies.
amount allocated
Property, plant and Deposit with corporation represents amounts deposited to settle
equipment 3 – 3 certain employee-related obligations as and when they arise during
Net current assets 21 – 21 the normal course of business.
Intangible assets –
Customer contracts and
relationships – 40 40
Deferred tax liabilities on
intangible assets – (12) (12)
24 28 52
Goodwill (1) 148
Total purchase price 200
(1)
The goodwill is not tax deductable.
The acquisition date fair value of the total consideration transferred
is ` 200 crore in cash.
The amount of trade receivables included in net current assets,
acquired from the above business acquisition was ` 40 crore.
A majority of the amount has been collected subsequently and based
on past experience, the Management expects the balance to be fully
collected.

46 | Financial statements as per IFRS

 2.5. Property, plant and equipment

Infosys Annual Report 2011-12

Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2012 :
in ` crore
Particulars Land Buildings Plant and Computer Furniture and Vehicles Capital work- Total
machinery equipment fixtures in-progress
Gross carrying value as of April 1, 2011 551 3,626 1,286 1,332 771 7 525 8,098
Acquisition through business combinations (Refer to Note 2.2) – – – 1 2 – – 3
Additions 158 242 160 291 107 2 509 1,469
Deletions – (1) (191) (260) (131) (1) – (584)
Translation difference – – 6 23 15 – – 44
Gross carrying value as of March 31, 2012 709 3,867 1,261 1,387 764 8 1,034 9,030
Accumulated depreciation as of April 1, 2011 – (978) (737) (1,070) (466) (3) – (3,254)
Depreciation – (249) (247) (267) (157) (2) – (922)
Accumulated depreciation on deletions – 1 191 260 131 1 – 584
Translation difference – – (2) (16) (11) – – (29)
Accumulated depreciation as of March 31, 2012 – (1,226) (795) (1,093) (503) (4) – (3,621)
Carrying value as of April 1, 2011 551 2,648 549 262 305 4 525 4,844
Carrying value as of March 31, 2012 709 2,641 466 294 261 4 1,034 5,409
During the year ended March 31, 2012, certain assets which were not in use having gross book value of ` 570 crore (carrying value Nil) were retired.
Following are the changes in the carrying value of property, plant and equipment for the year ended March 31, 2011 :
in ` crore
Particulars Land Buildings Plant and Computer Furniture and Vehicles Capital work- Total
machinery equipment fixtures in-progress
Gross carrying value as of April 1, 2010 327 3,300 1,263 1,251 765 5 409 7,320
Additions 224 326 170 291 126 2 116 1,255
Deletions – – (147) (219) (123) – – (489)
Translation difference – – – 9 3 – – 12
Gross carrying value as of March 31, 2011 551 3,626 1,286 1,332 771 7 525 8,098
Accumulated depreciation as of April 1, 2010 – (745) (648) (1,046) (440) (2) – (2,881)
Depreciation – (233) (237) (236) (147) (1) – (854)
Accumulated depreciation on deletions – – 147 219 123 – – 489
Translation difference – – 1 (7) (2) – – (8)
Accumulated depreciation as of March 31, 2011 – (978) (737) (1,070) (466) (3) – (3,254)
Carrying value as of April 1, 2010 327 2,555 615 205 325 3 409 4,439
Carrying value as of March 31, 2011 551 2,648 549 262 305 4 525 4,844
Financial statements as per IFRS | 47

During the year ended March 31, 2011, certain assets which were not in use having gross book value of ` 488 crore (carrying value Nil) were retired.
The depreciation expense for the years ended March 31, 2012 and March 31, 2011, is included in cost of sales in the consolidated Statement of Comprehensive Income.
Carrying value of land includes ` 286 crore and ` 146 crore as of March 31, 2012 and March 31, 2011, respectively, towards deposits paid under certain lease-cum-sale agreements to acquire land including

Additional Information
agreements where the Company has an option to purchase the properties on expiry of the lease period. The Company has already paid 99% of the market value of the properties prevailing at the time of
entering into the lease-cum-sale agreements with the balance payable at the time of purchase. The contractual commitments for capital expenditure were ` 1,044 crore and ` 814 crore, as of March 31, 2012
and March 31, 2011, respectively.
Additional Information Infosys Annual Report 2011-12

2.6. Goodwill and intangible assets The following is a summary of changes in the carrying amount of
acquired intangible assets :
Following is a summary of changes in the carrying amount of goodwill :
in ` crore
in ` crore
Particulars As of March 31,
Particulars As of March 31,
2012 2011
2012 2011
Gross carrying value at the beginning 117 117
Carrying value at the beginning 825 829
Additions through business combinations
Goodwill recognized on acquisition
(Refer to Note 2.3) 40 –
(Refer to Note 2.3) 148 –
Additions 90 –
Translation differences pertaining to
foreign subsidiary 20 (4) Translation differences 11 –
Carrying value at the end 993 825 Gross carrying value at the end 258 117

Consequent to the internal reorganization during the quarter ended Accumulated amortization at the
June 30, 2011, there were changes effected in the Company's beginning 69 61
reportable segments based on the ‘Management approach’ as defined Amortization expense 15 8
in IFRS 8, Operating Segments (Refer to Note 2.20). Accordingly Translation differences 1 –
the goodwill has been allocated to the new operating segments as at Accumulated amortization at the end 85 69
March 31, 2012 and as at March 31, 2011. Net carrying value 173 48
Goodwill has been allocated to the Cash Generating Units (CGU),
During the three months ended June 30, 2011, Infosys Australia
identified to be the operating segments as follows :
entered into an agreement with Telecom New Zealand Limited
in ` crore
(‘Telecom’) to purchase assets primarily pertaining to the rights to
Segment As of March 31, mutual subcontracting agreement for the existing customer contracts
2012 2011 of Telecom's Gen-I division. Consequent to the transaction, Infosys
Financial services and insurance (FSI) 434 400 Australia recognized the subcontracting rights amounting to
Manufacturing (MFG) 112 96 ` 19 crore as intangible assets and amortized the same over a period
Energy, Utilities, Communications of three years, being the Management's estimate of useful life of such
and Services (ECS) 140 95 intangible assets.
Retail, CPG, Logistics and Life During the three months ended September 30, 2011, Infosys
Sciences (RCL) 307 234 Shanghai paid ` 54 crore towards acquisition of land use rights.
Total 993 825 The land use rights are being amortized over the initial term of 50 years.
The entire goodwill relating to Infosys BPO's acquisition of McCamish Further during the three months ended March 31, 2012, government
has been allocated to the ‘Financial services and insurance’ segment. grant has been received for the land use right and is amortized over
the initial term of 50 years.
For the purpose of impairment testing, goodwill acquired in a business
combination is allocated to the CGU which are operating segments During March 2012, Infosys recognized ` 17 crore as intangible assets
regularly reviewed by the chief operating decision maker to make on account of software purchase and amortized the same over a period
decisions about resources to be allocated to the segment and to assess of five years being the Management's estimate of useful life of such
its performance. intangible assets.
The recoverable amount of a CGU is the higher of its fair value less The intangible customer contracts recognized at the time of acquisition
cost to sell and its value-in-use. The fair value of a CGU is determined of Philips BPO operations are being amortized over a period of seven
based on the market capitalization. The value-in-use is determined years, being the Management's estimate of its useful life, based on
based on specific calculations. These calculations use pre-tax Cash the life over which economic benefits are expected to be realized.
Flow projections over a period of five years, based on financial budgets As of March 31, 2012, the customer contracts have a remaining
approved by the Management and an average of the range of each amortization period of approximately three years.
assumption mentioned below. The intangible customer contracts and relationships recognized at the
As of March 31, 2012, the estimated recoverable amount of the time of the McCamish acquisition are being amortized over a period
CGU exceeded its carrying amount. The recoverable amount was of nine years, being the Management's estimate of its useful life, based
computed based on the fair value being higher than value-in-use and on the life over which economic benefits are expected to be realized.
the carrying amount of the CGU was computed by allocating the net As of March 31, 2012, the customer contracts and relationships have
assets to operating segments for the purpose of impairment testing. a remaining amortization period of approximately seven years.
The key assumptions used for the calculations are as follows : The intangible computer software platform recognized at the time
in % of the McCamish acquisition as having a useful life of four months,
Long-term growth rate 8 –10 being the Management's estimate of its useful life based on the life
Operating margins 17 – 20 over which economic benefits were expected to be realized, has been
fully amortized.
Discount rate 12.7
The intangible customer contracts and relationships of ` 40 crore,
The above discount rate is based on the Weighted Average Cost of recognized at the time of the Portland acquisition are being amortized
Capital (WACC) of the Company. These estimates are likely to differ over a period of 10 years, being the Management's estimate of its
from future actual results of operations and cash flows. useful life, based on the life over which economic benefits are expected
to be realized. As of March 31, 2012, the customer contracts and
relationships have a remaining amortization period of approximately
10 years.
The aggregate amortization expense included in cost of sales, for the
years ended March 31, 2012 and March 31, 2011 was ` 15 crore and
` 8 crore, respectively.

48 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Research and development expense recognized in net profit in the consolidated Statement of Comprehensive Income, for the years ended
March 31, 2012 and March 31, 2011 was ` 676 crore and ` 528 crore, respectively.

2.7. Financial instruments

Financial instruments by category
The carrying value and fair value of financial instruments by categories as of March 31, 2012 were as follows :
in ` crore
Particulars Loans and Financial assets / Available for Trade and Total carrying
receivables liabilities at fair sale other value / fair
value through payables value
profit and loss
Assets :
Cash and cash equivalents (Refer to Note 2.1) 20,591 – – – 20,591
Available-for-sale financial assets (Refer to Note 2.2) – – 44 – 44
Investment in certificates of deposit 345 – – – 345
Trade receivables 5,882 – – – 5,882
Unbilled revenue 1,873 – – – 1,873
Prepayments and other assets (Refer to Note 2.4) 886 – – – 886
Total 29,577 – 44 – 29,621
Liabilities :
Trade payables – – – 23 23
Derivative financial instruments – 42 – – 42
Client deposits – – – 15 15
Employee benefit obligations (Refer to Note 2.8) – – – 498 498
Other liabilities (Refer to Note 2.10) – – – 1,954 1,954
Liability towards acquisition of business on a
discounted basis (Refer to Note 2.10) – – – 59 59
Total – 42 – 2,549 2,591
The carrying value and fair value of financial instruments by categories as of March 31, 2011 were as follows :
in ` crore
Particulars Loans and Financial assets / Available for Trade and Total carrying
receivables liabilities at fair sale other value / fair
value through payables value
profit and loss
Assets :
Cash and cash equivalents (Refer to Note 2.1) 16,666 – – – 16,666
Available-for-sale financial assets (Refer to Note 2.2) – – 44 – 44
Investment in certificates of deposit 123 – – – 123
Trade receivables 4,653 – – – 4,653
Unbilled revenue 1,243 – – – 1,243
Prepayments and other assets (Refer to Note 2.4) 727 – – – 727
Derivative financial instruments – 66 – – 66
Total 23,412 66 44 – 23,522
Liabilities :
Trade payables – – – 44 44
Client deposits – – – 22 22
Employee benefit obligations (Refer to Note 2.8) – – – 399 399
Other liabilities (Refer to Note 2.10) – – – 1,678 1,678
Liability towards acquisition of business on a discounted
basis (Refer to Note 2.10) – – – 43 43
Total – – – 2,186 2,186

Fair value hierarchy

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Financial statements as per IFRS | 49

Additional Information Infosys Annual Report 2011-12

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2012 :
in ` crore
Particulars As of Fair value measurement at the end of the
March 31, 2012 reporting period / year using
Level 1 Level 2 Level 3
Assets :
Available-for-sale financial asset – investments in liquid mutual fund
units (Refer to Note 2.2) 32 32 – –
Available-for-sale financial asset – investments in unlisted equity
instruments (Refer to Note 2.2) 12 – 12 –
Derivative financial instruments – loss on outstanding foreign exchange
forward and option contracts 42 – 42 –
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2011 :
in ` crore
Particulars As of Fair value measurement at the end of the
March 31, 2011 reporting period / year using
Level 1 Level 2 Level 3
Assets :
Available-for-sale financial asset – investments in liquid mutual fund
units (Refer to Note 2.2) 21 21 – –
Available-for-sale financial asset – investments in unlisted equity
instruments (Refer to Note 2.2) 23 – 23 –
Derivative financial instruments – gains on outstanding foreign exchange
forward and option contracts 66 – 66 –
The income from financial assets or liabilities that are not at fair value through profit or loss is as follows :
in ` crore
Particulars Year ended March 31,
2012 2011
Interest income on deposits and certificates of deposit 1,807 1,133
Income from available-for-sale financial assets 27 23
1,834 1,156

Derivative financial instruments

The Company uses derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in
foreign exchange rates on trade receivables and forecasted cash flows denominated in certain foreign currencies. The counterparty for these
contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets
and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.
The following table gives details in respect of outstanding foreign exchange forward and option contracts :
Particulars As of March 31,
2012 2011
In million In ` crore In million In ` crore
Forward contracts
In U.S. Dollars 747 3,709 546 2,433
In Euro 38 258 28 177
In U.K. Pound Sterling 22 179 15 108
In Australian Dollars 23 122 10 46
Option contracts
In U.S. Dollars 50 254 – –
Total forwards and options 4,522 2,764
The Company recognized a net loss on derivative financial instruments of ` 299 crore during the year ended March 31, 2012 and a net gain on
derivative financial instruments of ` 56 crore during the year ended March 31, 2011, which are included in other income.
The foreign exchange forward and option contracts mature between 1 to 12 months. The following table analyzes the derivative financial
instruments into relevant maturity groupings based on the remaining period as of the Balance Sheet date :
in ` crore
Particulars As of March 31,
2012 2011
Not later than one month 344 435
Later than one month and not later than three months 790 649
Later than three months and not later than one year 3,388 1,680
4,522 2,764

50 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Financial risk management

Financial risk factors
The Company's activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company's primary focus is to
foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market
risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk
exposures. The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of
risk from the top few customers. The demographics of the customer including the default risk of the industry and country in which the customer
operates also has an influence on credit risk assessment.
Market risk
The Company operates internationally and a major portion of the business is transacted in several currencies and consequently the Company
is exposed to foreign exchange risk through its sales and services in the U.S. and elsewhere, and purchases from overseas suppliers in various
foreign currencies. The Company uses derivative financial instruments such as foreign exchange forward and option contracts to mitigate
the risk of changes in foreign exchange rates on trade receivables and forecasted cash flows denominated in certain foreign currencies. The
exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future.
Consequently, the results of the Company's operations are adversely affected as the rupee appreciates / depreciates against these currencies.
The following table gives details in respect of the outstanding foreign exchange forward and option contracts :
in ` crore
Particulars As of March 31,
2012 2011
Aggregate amount of outstanding forward and option contracts 4,522 2,764
Gains / (losses) on outstanding forward and option contracts (42) 66
The outstanding foreign exchange forward and option contracts as of March 31, 2012 and March 31, 2011, mature between 1 to 12 months.
The following table analyzes foreign currency risk from financial instruments as of March 31, 2012 :
in ` crore
Particulars U.S. Dollars Euro U.K. Pound Australian Other Total
Sterling Dollars currencies
Cash and cash equivalents 695 54 35 83 161 1,028
Trade receivables 3,915 592 560 398 239 5,704
Unbilled revenue 1,021 300 124 63 158 1,666
Other assets 651 22 25 3 113 814
Trade payables (1) (1) (1) (2) (13) (18)
Client deposits (13) (1) – – – (14)
Accrued expenses (432) (40) – (3) (64) (539)
Employee benefit obligations (194) – – (4) (92) (290)
Other liabilities (1,233) (247) (6) (24) (89) (1,599)
Net assets / (liabilities) 4,409 679 737 514 413 6,752
The following table analyzes foreign currency risk from financial instruments as of March 31, 2011 :
in ` crore
Particulars U.S. Dollars Euro U.K. Pound Australian Other Total
Sterling Dollars currencies
Cash and cash equivalents 589 40 69 532 138 1,368
Trade receivables 3,095 407 475 294 221 4,492
Unbilled revenue 731 180 97 65 71 1,144
Other assets 589 12 61 – 38 700
Trade payables (1) – (1) – (11) (13)
Client deposits (20) – – – (1) (21)
Accrued expenses (232) (17) 15 – (37) (271)
Employee benefit obligations (134) – (14) – (60) (208)
Other liabilities (1,468) (180) (28) (4) (68) (1,748)
Net assets / (liabilities) 3,149 442 674 887 291 5,443
For the years ended March 31, 2012 and March 31, 2011, every percentage point depreciation / appreciation in the exchange rate between the
Indian rupee and U.S. dollar, has affected the Company's operating margins by approximately 0.56% and 0.55%, respectively.
Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional currency,
due to exchange rate fluctuations between the previous reporting period and the current reporting period.
Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the
credit risk at the reporting date is primarily from trade receivables amounting to ` 5,882 crore and ` 4,653 crore as of March 31, 2012 and
March 31, 2011, respectively and unbilled revenue amounting to ` 1,873 crore and ` 1,243 crore as of March 31, 2012 and March 31, 2011, respectively.
Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers primarily located in the U.S.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which
the Company grants credit terms in the normal course of business.

Financial statements as per IFRS | 51

Additional Information Infosys Annual Report 2011-12

The following table gives details in respect of percentage of revenues The movement in the provision for doubtful accounts receivables is
generated from top customer and top five customers : as follows :
in % in ` crore
Revenues Year ended March 31, Year ended March 31,
2012 2011 2012 2011
From top customer 4.3 4.7 Balance at the beginning 86 102
From top five customers 15.5 15.4 Translation differences (2) (5)
Provisions for doubtful
Financial assets that are neither past due nor impaired accounts receivable
Cash and cash equivalents, available-for-sale financial assets and (Refer to note 2.11) 62 2
investment in certificates of deposits are neither past due nor Trade receivables written off (61) (13)
impaired. Cash and cash equivalents include deposits with banks Balance at the end 85 86
and corporations with high credit-ratings assigned by international
and domestic credit-rating agencies. Available-for-sale financial assets Liquidity risk
include investment in liquid mutual fund units and unlisted equity As of March 31, 2012, the Company had a working capital of
securities. Certificates of deposit represent funds deposited at a bank ` 25,480 crore including cash and cash equivalents of ` 20,591 crore,
or other eligible financial institution for a specified time period. available-for-sale financial assets of ` 32 crore and investments
Of the total trade receivables, ` 4,263 crore and ` 3,353 crore as of in certificates of deposit of ` 345 crore. As of March 31, 2011,
March 31, 2012 and March 31, 2011, respectively, were neither past the Company had a working capital of ` 20,048 crore including cash
due nor impaired. and cash equivalents of ` 16,666 crore, available-for-sale financial assets
of ` 21 crore and investments in certificates of deposit of ` 123 crore.
Financial assets that are past due but not impaired
As of March 31, 2012 and March 31, 2011, the outstanding
There is no other class of financial assets that is not past due but
employee benefit obligations were ` 498 crore and ` 399 crore,
impaired except for trade receivables of ` 1 crore and ` 3 crore as of
respectively, which have been substantially funded. Further, as of
March 31, 2012 and March 31, 2011, respectively.
March 31, 2012 and March 31, 2011, the Company had no outstanding
The Company's credit period generally ranges from 30 – 90 days. bank borrowings. Accordingly, no liquidity risk is perceived.
The age analysis of the trade receivables have been considered
from the due date. The age wise break-up of trade receivables,
net of allowances that are past due, is as follows :
in ` crore
Period (in days) As of March 31,
2012 2011
Less than 30 1,110 929
31 – 60 187 193
61 – 90 190 61
More than 90 132 117
1,619 1,300
The provision for doubtful accounts receivables for the years ended
March 31, 2012 and March 31, 2011 was ` 62 crore and ` 2 crore,
respectively.

The analysis of the contractual maturities of significant financial liabilities as of March 31, 2012 is as follows :
in ` crore
Particulars Less than 1 year 1 – 2 years 2 – 4 years 4 – 7 years Total
Trade payables 23 – – – 23
Client deposits 15 – – – 15
Other liabilities (Refer to Note 2.10) 1,942 12 – – 1,954
Liability towards acquisition of business on an
undiscounted basis (Refer to Note 2.10) 4 12 49 9 74
The following table provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2011 :
in ` crore
Particulars Less than 1 year 1 – 2 years 2 – 4 years 4 – 7 years Total
Trade payables 44 – – – 44
Client deposits 22 – – – 22
Other liabilities (Refer to Note 2.10) 1,658 20 – – 1,678
Liability towards acquisition of business on an
undiscounted basis (Refer to Note 2.10) 4 10 43 8 65
As of March 31, 2012 and March 31, 2011, the Company had outstanding financial guarantees of ` 23 crore and ` 21 crore, respectively, towards
leased premises. These financial guarantees can be invoked upon breach of any term of the lease agreement. To the Company's knowledge,
there has been no breach of any term of the lease agreement as of March 31, 2012 and March 31, 2011.

52 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

2.8. Employee benefit obligations in ` crore

Employee benefit obligations comprise the following : Particulars As of March 31,

in ` crore 2012 2011
Obligations As of March 31, Deferred income – government grant on
2012 2011 land use rights (Refer to Note 2.6) (1) 27 –
Current 109 60
Compensated absence 498 140 2,565 2,072
498 140 Financial liabilities included in other
Non-current liabilities (excluding liability towards
Compensated absence – 259 acquisition of business) 1,954 1,678
– 259 Financial liability towards acquisition of
498 399 business on a discounted basis 59 43
Financial liability towards acquisition of
2.9. Provisions business on an undiscounted basis
(Refer to Note 2.3) 74 65
Provisions comprise the following : (1)
Non-financial liabilities
in ` crore
Accrued expenses primarily relates to cost of technical sub-contractors,
Provision As of March 31, telecommunication charges, legal and professional charges,
2012 2011 brand building expenses, overseas travel expenses and office
Provision for post-sales client support 133 88 maintenance. Others include unclaimed dividend balances.
Provision for post-sales client support represents cost associated with
2.11. Nature of expenses
providing post-sales support services which are accrued at the time of
in ` crore
recognition of revenues and are expected to be utilized over a period
of 6 months to 1 year. The movement in the provision for post-sales Particulars Year ended March 31,
client support is as follows : 2012 2011
in ` crore Employee benefit costs
(Refer to Note 2.12.4) 18,340 14,856
Particulars Year ended March 31,
Depreciation and amortization charges
2012 2011
(Refer to Notes 2.5 and 2.6) 937 862
Balance at the beginning 88 82
Travel costs 1,122 954
Provision recognized /
Consultancy and professional charges 483 344
(reversed) (Refer to note 2.11) 60 5
Software packages for own use 492 350
Provision utilized (17) –
Third party items bought for service
Translation difference 2 1
delivery 162 139
Balance at the end 133 88
Communication costs 274 237
Provision for post-sales client support for the years ended March 31, Cost of technical sub-contractors 777 603
2012 and March 31, 2011 is included in cost of sales in the Statement Power and fuel 184 167
of Comprehensive Income. Office maintenance 284 222
Repairs and maintenance 147 134
2.10. Other liabilities Rates and taxes 66 54
Other liabilities comprise the following : Insurance charges 36 33
in ` crore Commission 27 15
Particulars As of March 31, Branding and marketing expenses 125 104
2012 2011 Consumables 28 27
Current Provision for post-sales client support
Accrued compensation to employees 644 732 (Refer to Note 2.9) 60 5
Accrued expenses 1,085 771 Provision for doubtful account
Withholding taxes payable (1) 506 329 receivables (Refer to Note 2.7) 62 2
Retainage 51 26 Postage and courier 13 13
Unamortized negative past service cost Printing and stationery 14 14
(Refer to Note 2.12.1) (1) 4 22 Donations 26 1
Liabilities of controlled trusts 149 119 Operating lease payments
Liability towards acquisition of business 3 3 (Refer to Note 2.15) 190 146
Accrued gratuity 2 2 Others 106 117
Deferred income – government grant on Total cost of sales, selling and marketing
land use rights (Refer to Note 2.6) (1) 1 – expenses and administrative expenses 23,955 19,399
Others 11 8
2,456 2,012
Non-current
Liability towards acquisition of business 56 40
Accrued expenses 5 –
Unamortized negative past service cost
(Refer to Note 2.12.1) (1) 14 –
Incentive accruals 7 20

Financial statements as per IFRS | 53

Additional Information Infosys Annual Report 2011-12

2.11.1. Break-up of expenses Administrative expenses

in ` crore
Cost of sales Particulars Year ended March 31,
in ` crore 2012 2011
Particulars Year ended March 31, Employee benefit costs 743 667
2012 2011 Consultancy and professional charges 457 328
Employee benefit costs 16,237 12,971 Repairs and maintenance 83 81
Depreciation and amortization 937 862 Office maintenance 284 222
Travel costs 789 690 Power and fuel 184 167
Software packages for own use 492 350 Communication costs 164 138
Third party items bought for service Travel costs 157 136
delivery 162 139 Provision for doubtful accounts
Cost of technical sub-contractors 777 603 receivable 62 2
Consumables 28 27 Rates and taxes 64 54
Operating lease payments 123 90 Insurance charges 36 33
Communication costs 92 82 Operating lease payments 43 39
Repairs and maintenance 64 53 Postage and courier 13 13
Provision for post-sales client support 60 5 Printing and stationery 13 13
Other expenses 47 44 Branding and marketing 4 7
Total 19,808 15,916 Donations 26 1
Other expenses 57 70
Selling and marketing expenses Total 2,390 1,971
in ` crore
Particulars Year ended March 31,
2012 2011
Employee benefit costs 1,360 1,218
Travel costs 176 128
Branding and marketing 121 97
Operating lease payments 24 17
Communication costs 18 17
Commission 27 15
Consultancy and professional charges 26 16
Printing and stationery 1 1
Others 4 3
Total 1,757 1,512

2.12. Employee benefits

2.12.1. Gratuity
The following tables set out the funded status of the Gratuity Plans and the amounts recognized in the Company's financial statements as of
March 31, 2012, March 31, 2011, March 31, 2010, March 31, 2009 and March 31, 2008 :
in ` crore
Particulars As of March 31,
2012 2011 2010 2009 2008
Change in benefit obligations
Benefit obligations at the beginning 480 325 267 224 225
Service cost 157 178 80 51 50
Interest cost 39 25 19 16 17
Actuarial (gains) / losses (6) 17 (5) 1 (8)
Benefits paid (70) (65) (36) (25) (23)
Amendment in benefit plan – – – – (37)
Benefit obligations at the end 600 480 325 267 224
Change in plan assets
Fair value of plan assets at the beginning 480 327 268 236 225
Expected return on plan assets 49 36 25 17 18
Actuarial gains / (losses) – – 1 5 2
Employer contributions 154 182 69 35 14
Benefits paid (70) (65) (36) (25) (23)
Fair value of plan assets at the end 613 480 327 268 236
Funded status 13 – 2 1 12
Prepaid gratuity benefit 15 2 4 1 12
Accrued gratuity (2) (2) (2) – –

54 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Net gratuity cost for the years ended March 31, 2012 and March 31, determined based on consideration of available market information,
2011 comprises the following components : current provisions of Indian law specifying the instruments in which
in ` crore investments can be made, and historical returns. Historical returns
Particulars Year ended March 31, during the years ended March 31, 2012 and March 31, 2011, have not
2012 2011 been lower than the expected rate of return on plan assets estimated for
those years. The discount rate is based on the government securities
Service cost 157 178
yield. The Company expects to contribute approximately ` 150 crore
Interest cost 39 25
to the gratuity trusts during fiscal 2013.
Expected return on plan assets (49) (36)
Actuarial (gain) / loss (6) 17 Assumptions regarding future mortality experience are set in
Plan amendments (4) (4) accordance with the published statistics by the Life Insurance
Net gratuity cost 137 180 Corporation of India.

The net gratuity cost has been apportioned between cost of sales, 2.12.2. Superannuation
selling and marketing expenses and administrative expenses on the The Company contributed ` 142 crore and ` 109 crore to the
basis of direct employee cost as follows : superannuation plan during the years ended March 31, 2012 and
in ` crore March 31, 2011, respectively.
Particulars Year ended March 31, Superannuation contributions have been apportioned between cost
2012 2011 of sales, selling and marketing expenses and administrative expenses
Cost of sales 121 157 on the basis of direct employee cost as follows :
Selling and marketing expenses 10 15 in ` crore
Administrative expenses 6 8 Particulars Year ended March 31,
137 180 2012 2011
Effective July 1, 2007, the Company amended its Gratuity Plan, Cost of sales 126 95
to suspend the voluntary defined death benefit component of the Selling and marketing expenses 10 9
Gratuity Plan. This amendment resulted in a negative past service cost Administrative expenses 6 5
amounting to ` 37 crore, which is being amortized on a straight-line 142 109
basis over the average remaining service period of employees which
is 10 years. The unamortized negative past service cost of ` 18 crore
2.12.3. Provident fund
and ` 22 crore as of March 31, 2012 and March 31, 2011, respectively The Company has an obligation to fund any shortfall on the yield
has been included under other current liabilities. of the Trust's investments over the administered interest rates on
an annual basis. These administered rates are determined annually
The weighted-average assumptions used to determine benefit
predominantly considering the social rather than economic factors
obligations as of March 31, 2012, March 31, 2011, March 31, 2010,
and in most cases the actual return earned by the Company has been
March 31, 2009 and March 31, 2008 are as follows :
in % higher in the past years. The Actuarial Society of India has issued the
final guidance for measurement of provident fund liabilities during
Particulars As of March 31, the quarter ended December 31, 2011. The actuary has accordingly
2012, 2011 2010, 2009, 2008 provided a valuation and based on the following assumptions there
Discount rate 8.6 8.0 7.8 7.0 7.9 is no shortfall as at March 31, 2012, 2011, 2010, 2009 and 2008,
Weighted average respectively.
rate of increase in
The details of fund and plan asset position are as follows :
compensation levels 7.3 7.3 7.3 5.1 5.1
in ` crore
The weighted-average assumptions used to determine net periodic Particulars As of March 31,
benefit cost for the years ended March 31, 2012 and March 31, 2011 2012 2011 2010 2009 2008
are as follows :
in % Plan assets at period
Particulars Year ended March 31, end, at fair value 1,816 1,579 1,295 997 743
2012 2011 Present value of benefit
Discount rate 8.0 7.8 obligation at period end 1,816 1,579 1,295 997 743
Asset recognized in
Weighted average rate of
Balance Sheet – – – – –
increase in compensation levels 7.3 7.3
Rate of return on plan assets 9.5 9.4 Assumptions used in determining the present value obligation of the
interest rate guarantee under the deterministic approach :
The Company contributes all ascertained liabilities towards gratuity
to the Infosys Limited Employees' Gratuity Fund Trust. In case of Particulars As of March 31,
Infosys BPO, contributions are made to the Infosys BPO Employees' 2012 2011 2010 2009 2008
Gratuity Fund Trust. Trustees administer contributions made to the Government of India
Trust and contributions are invested in a scheme with Life Insurance (GoI) bond yield (%) 8.57 7.98 7.83 7.01 7.96
Corporation as permitted by the law. As of March 31, 2012 and Remaining term of
March 31, 2011 the plan assets have been primarily invested in maturity (in years) 8 7 7 6 6
government securities. Expected guaranteed
Actual return on assets for the years ended March 31, 2012 and March interest rate (%) 8.25 9.50 8.50 8.50 8.50
31, 2011 were ` 49 crore and ` 36 crore, respectively. The Company contributed ` 238 crore and ` 198 crore to the provident
The Company assesses these assumptions with its projected long-term fund during the years ended March 31, 2012 and March 31, 2011,
plans of growth and prevalent industry standards. The Company's respectively.
overall expected long-term rate-of-return on assets has been

Financial statements as per IFRS | 55

Additional Information Infosys Annual Report 2011-12

Provident fund contributions have been apportioned between cost of 2.13.2. Dividends
sales, selling and marketing expenses and administrative expenses on The Company declares and pays dividends in Indian rupees.
the basis of direct employee cost as follows : Indian law mandates that any dividend be declared out of accumulated
in ` crore distributable profits only after the transfer to a general reserve of
Particulars Year ended March 31, a specified percentage of net profit computed in accordance with
2012 2011 current regulations. The remittance of dividends outside India
Cost of sales 211 173 is governed by Indian law on foreign exchange and is subject to
Selling and marketing expenses 18 16 applicable distribution taxes.
Administrative expenses 9 9 The amount of per share dividend recognized as distributions
238 198 to equity shareholders for year ended March 31, 2012 and
March 31, 2011 was ` 35.00 and ` 55.00, respectively. The dividend
2.12.4. Employee benefit costs include for the year ended March 31, 2012 includes ` 20.00 per share of final
The employee benefit costs include : dividend for the year ended March 31, 2011 and ` 15.00 per share
in ` crore of interim dividend, authorized by the Board on its meeting held on
October 12, 2011. The dividend for the year ended March 31, 2011
Particulars Year ended March 31,
includes ` 15.00 per share of final dividend for the year ended March
2012 2011
31, 2010 and ` 10.00 per share of interim dividend and ` 30.00 per
Salaries and bonus 17,823 14,369
share of 30th year special dividend, authorized by the Board on its
Defined contribution plans 166 128
meeting held on October 15, 2010.
Defined benefit plans 351 359
18,340 14,856 The Board of Directors, in their meeting on April 13, 2012,
proposed a final dividend of ` 22.00 per equity share and a special
The employee benefit cost is recognized in the following line items in dividend – 10 years of Infosys BPO operations of ` 10.00 per equity
the Statement of Comprehensive Income : share. The proposal is subject to the approval of shareholders at the
Particulars Year ended March 31, Annual General Meeting to be held on June 9, 2012, and if approved,
2012 2011 would result in a cash outflow of approximately ` 2,135 crore, inclusive
Cost of sales 16,237 12,971 of corporate dividend tax of ` 298 crore.
Selling and marketing expenses 1,360 1,218 2.13.3. Liquidation
Administrative expenses 743 667
In the event of liquidation of the Company, the holders of shares shall
18,340 14,856
be entitled to receive any of the remaining assets of the Company,
after distribution of all preferential amounts. However, no such
2.13. Equity
preferential amounts exist currently, other than the amounts held
Share capital and share premium by irrevocable controlled trusts. The amount distributed will be in
The Company has only one class of shares referred to as equity shares proportion to the number of equity shares held by the shareholders.
having a par value of ` 5/-. The amount received in excess of the For irrevocable controlled trusts, the corpus would be settled in favor
par value has been classified as share premium. Additionally, share- of the beneficiaries.
based compensation recognized in net profit in the consolidated 2.13.4. Share options
Statement of Comprehensive Income is credited to the share premium.
There are no voting, dividend or liquidation rights to the holders of
28,33,600 shares were held by controlled trust, each as of
options issued under the Company's share option plans.
March 31, 2012 and March 31, 2011.
Retained earnings 2.14. Other income
Retained earnings represent the amount of accumulated earnings of Other income consists of the following :
the Company. in ` crore
Particulars Year ended March 31,
Other components of equity 2012 2011
Other components of equity consist of currency translation and fair Interest income on deposits and
value changes on available-for-sale financial assets. certificates of deposit 1,807 1,133
The Company's objective when managing capital is to safeguard its Exchange gains / (losses) on forward and
ability to continue as a going concern and to maintain an optimal options contracts (299) 56
capital structure so as to maximize shareholder value. In order to Exchange gains / (losses) on translation
maintain or achieve an optimal capital structure, the Company may of other assets and liabilities 351 (14)
adjust the amount of dividend payment, return capital to shareholders, Income from available-for-sale financial
issue new shares or buy back issued shares. As of March 31, 2012, assets / investments 27 23
the Company has only one class of equity shares and has no debt. Others 18 13
Consequent to the above capital structure there are no externally 1,904 1,211
imposed capital requirements.
The rights of equity shareholders are as follows : 2.15. Operating leases
The Company has various operating leases, mainly for office
2.13.1. Voting buildings, that are renewable on a periodic basis. Rental expense for
Each holder of equity shares is entitled to one vote per share. operating leases was ` 190 crore and ` 146 crore for the years ended
The equity shares represented by American Depositary Shares (ADS) March 31, 2012 and March 31, 2011, respectively.
carry similar rights to voting and dividends as the other equity shares.
Each ADS represents one underlying equity share.

56 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

The schedule of future minimum rental payments in respect of The 1998 Plan is administered by a compensation committee
non-cancelable operating leases is as follows : comprising four members, all of whom are independent members
As of March 31, of the Board of Directors. The term of the 1998 Plan ended on
2012 2011 January 6, 2008, and consequently no further shares will be issued to
employees under this plan.
Within one year of the Balance Sheet date 159 109
Due in a period between one year and 1999 Employees Stock Option Plan (the 1999 Plan)
five years 281 251
In the year 2000, the Company instituted the 1999 Plan. The Board
Due after five years 74 71 of Directors and shareholders approved the 1999 Plan in June 1999.
The operating lease arrangements extend up to a maximum of The 1999 Plan provides for the issue of 5,28,00,000 equity shares
10 years from their respective dates of inception, and relates to rented to employees. The 1999 Plan is administered by a compensation
overseas premises. Some of these lease agreements have a price committee comprising four members, all of whom are independent
escalation clause. members of the Board of Directors. Under the 1999 Plan, options will
be issued to employees at an exercise price, which shall not be less
2.16. Employees Stock Option Plans (ESOP) than the Fair Market Value (FMV) of the underlying equity shares on
the date of grant. Under the 1999 Plan, options may also be issued to
1998 Employees Stock Option Plan (the 1998 Plan)
employees at exercise prices that are less than FMV only if specifically
The Company's 1998 Plan provides for the grant of non-statutory share approved by the shareholders of the Company in a general meeting.
options and incentive share options to employees of the Company. All options under the 1999 Plan are exercisable for equity shares.
The establishment of the 1998 Plan was approved by the Board of The options under the 1999 Plan vest over a period of one through six
Directors in December 1997 and by the shareholders in January 1998. years, although accelerated vesting based on performance conditions
The Government of India has approved the 1998 Plan, subject to a is provided in certain instances and expire over a period of six months
limit of 1,17,60,000 equity shares representing 1,17,60,000 ADS to through five years from the date of completion of vesting. The term of
be issued under the 1998 Plan. All options granted under the 1998 the 1999 plan ended on June 11, 2009, and consequently no further
Plan are exercisable for equity shares represented by ADS. The options shares will be issued to employees under this plan.
under the 1998 Plan vest over a period of one through four years and
expire five years from the date of completion of vesting.

The activity in the 1998 Plan and 1999 Plan during the years ended March 31, 2012 and March 31, 2011 are as follows :
Particulars Year ended March 31, 2012 Year ended March 31, 2011
Shares arising Weighted Shares arising Weighted
out of options average out of options average
exercise price exercise price
1998 Plan :
Outstanding at the beginning 50,070 683 2,42,264 613
Forfeited and expired (480) 862 (3,519) 722
Exercised (49,590) 734 (1,88,675) 600
Outstanding at the end – – 50,070 683
Exercisable at the end – – 50,070 683

1999 Plan :
Outstanding at the beginning 48,720 962 2,04,464 869
Forfeited and expired (28,852) 430 (18,052) 964
Exercised (8,185) 643 (1,37,692) 823
Outstanding at the end 11,683 2,121 48,720 962
Exercisable at the end 7,429 2,121 40,232 717
The weighted average share price of options exercised under the 1998 Plan during the years 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 years ended
March 31, 2012 and March 31, 2011 was ` 2,702 and ` 2,902 respectively.
The cash expected to be received upon the exercise of vested options for the 1998 Plan and 1999 Plan is Nil and ` 2 crore, respectively.
The following table summarizes information about share options outstanding and exercisable as of March 31, 2012 :
Range of exercise prices per share (`) Options outstanding Options exercisable
No. of shares Weighted Weighted No. of shares Weighted Weighted
arising out of average average arising out of average average
options remaining exercise price options remaining exercise price
contractual life contractual life
1998 Plan :
300 – 700 – – – – – –
701 – 1,400 – – – – – –
1999 Plan :
300 – 700 – – – – – –
701 – 2,500 11,683 0.71 2,121 7,429 0.71 2,121
11,683 0.71 2,121 7,429 0.71 2,121

Financial statements as per IFRS | 57

Additional Information Infosys Annual Report 2011-12

The following table summarizes information about share options outstanding and exercisable as of March 31, 2011 :
Range of exercise prices Options outstanding Options exercisable
per share (`) No. of shares Weighted average Weighted No. of shares Weighted average Weighted
arising out of remaining average arising out of remaining average exercise
options contractual life exercise price options contractual life price
1998 Plan :
300 – 700 24,680 0.73 587 24,680 0.73 587
701 – 1,400 25,390 0.56 777 25,390 0.56 777
50,070 0.65 683 50,070 0.65 683
1999 Plan :
300 – 700 33,759 0.65 448 33,759 0.65 448
701 – 2,500 14,961 1.71 2,121 6,473 1.71 2,121
48,720 0.97 962 40,232 0.82 717

The share-based compensation recorded for the years ended March 31, 2012 and March 31, 2011 was Nil.
2.17. Income tax
Income tax expense in the Statement of Comprehensive Income The overseas tax expense is due to income taxes payable overseas,
comprises : principally in the U.S. The Company benefits from certain
in ` crore significant tax incentives provided to software firms under Indian
Taxes Year ended March 31, tax laws. These incentives include those for facilities set up under
2012 2011 the Special Economic Zones Act, 2005 and software development
Current taxes facilities designated as ‘Software Technology Parks’ (STP). The STP
Domestic taxes 3,093 2,060 tax holiday is available for 10 consecutive years, beginning from the
Overseas taxes 220 564 financial year when the unit started producing computer software or
3,313 2,624 April 1, 1999, whichever is earlier. The Indian Government, through
Deferred taxes the Finance Act, 2009, has extended the tax holiday for the STP units
Domestic taxes 64 (95) until fiscal 2011. The tax holiday for all of our STP units has expired as of
Overseas taxes (10) (39) March 31, 2011. Under the Special Economic Zones Act, 2005
54 (134) scheme, units in designated special economic zones which begin
Income tax expense 3,367 2,490 providing services on or after April 1, 2005 are eligible for a deduction
Entire deferred income tax for the years ended March 31, 2012 and of 100% of profits or gains derived from the export of services for the
March 31, 2011 relates to origination and reversal of temporary first five years from commencement of provision of services and 50%
differences and utilization of deferred tax assets on subsidiary losses of such profits or gains for a further five years. Certain tax benefits
upon transfer of assets and liabilities of Infosys Consulting Inc., are also available for a further period of five years subject to the unit
to Infosys Limited. meeting defined conditions.
A reversal of deferred tax liability of ` 3 crore each for the years ended Infosys is subject to a 15% Branch Profit Tax (BPT) in the U.S.
March 31, 2012 and March 31, 2011, relating to an available-for-sale to the extent of the U.S. branch's net profit during the year is greater
financial asset has been recognized in other comprehensive income than the increase in the net assets of the U.S. branch during the year,
(Refer to Note 2.2). computed in accordance with the Internal Revenue Code. As of
March 31, 2012, Infosys' U.S. branch net assets amounted to
A reconciliation of the income tax provision to the amount computed
approximately ` 3,347 crore. As of March 31, 2012, the Company
by applying the statutory income tax rate to the income before income
has provided for branch profit tax of ` 270 crore for its U.S. branch,
taxes is summarized as follows :
in ` crore
as the Company estimates that these branch profits are expected to be
distributed in the foreseeable future.
Particulars Year ended March 31,
Deferred income tax liabilities have not been recognized on temporary
2012 2011
differences amounting to ` 1,481 crore and ` 1,466 crore as of
Profit before income taxes 11,683 9,313
Enacted tax rates in India 32.45% 33.22% March 31, 2012 and March 31, 2011, respectively, associated with
Computed expected tax expense 3,791 3,094 investments in subsidiaries and branches as it is probable that the
Tax effect due to non-taxable income for temporary differences will not reverse in the foreseeable future.
Indian tax purposes (972) (788) The gross movement in the current income tax asset / (liability) for
Overseas taxes 460 399 the years ended March 31, 2012 and March 31, 2011 is as follows :
Tax reversals, overseas and domestic, net (106) (236) in ` crore
Effect of exempt income (10) (3) Particulars Year ended March 31,
Effect of unrecognized deferred tax assets 38 19 2012 2011
Effect of differential overseas tax rates (14) (7) Net current income tax asset / (liability)
Effect of non-deductible expenses 15 4 at the beginning 176 (57)
Temporary difference related to branch
Translation differences 2 (10)
profits 72 –
Income tax benefit arising on exercise of
Taxes on dividend received from
stock options 1 11
subsidiary 94 –
Income tax paid 3,117 2,856
Others (1) 8
Current income tax expense
Income tax expense 3,367 2,490
(Refer to Note 2.17) (3,313) (2,624)
The applicable Indian statutory tax rate for fiscal 2012 and fiscal 2011 Net current income tax asset / (liability)
is 32.45% and 33.22%, respectively. The decrease in the applicable at the end (17) 176
statutory tax rate is consequent to changes made in the Finance Act 2011.

58 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

The tax effects of significant temporary differences that resulted in The credits relating to temporary differences are primarily on account
deferred income tax assets and liabilities are as follows : of compensated absences, accrued compensation to employees and
in ` crore property, plant and equipment.
Particulars As of March 31, Pursuant to the enacted changes in the Indian Income Tax Laws
2012 2011 effective April 1, 2007, a Minimum Alternate Tax (MAT) has been
Deferred income tax assets extended to income in respect of which a deduction may be claimed
Property, plant and equipment 297 257 under sections 10A and 10AA of the Income Tax Act. Consequent to
Minimum alternate tax credit the enacted change Infosys BPO Limited has calculated its tax liability
carry-forwards 55 63 for current domestic taxes after considering MAT. The excess tax paid
Computer software 36 24 under MAT provisions being over and above regular tax liability can
Accrued compensation to employees 32 26 be carried forward and set off against future tax liabilities computed
Trade receivables 19 20 under regular tax provisions. Infosys BPO was required to pay
Compensated absences 128 104 MAT, and accordingly, a deferred income tax asset of ` 55 crore and
Accumulated subsidiary losses – 39 ` 63 crore has been recognized on the Balance Sheet as of
Others 23 28 March 31, 2012 and March 31, 2011, respectively, which can be
Total deferred income tax assets 590 561 carried forward for a period of 10 years from the year of recognition.
Deferred income tax liabilities The Company has received demands from the Indian Income Tax
Intangible asset (14) (2) Authorities for payment of additional tax of ` 1,088 crore, including
Temporary difference related to interest of ` 313 crore upon completion of their tax review for fiscal
branch profits (270) (176) 2005, fiscal 2006, fiscal 2007 and fiscal 2008. The tax demands are
Available-for-sale financial asset (2) (5) mainly on account of disallowance of a portion of the deduction
Total deferred income tax liabilities (286) (183) claimed by the Company under Section 10A of the Income Tax Act.
Deferred income tax assets to be The deductible amount is determined by the ratio of export turnover
recovered after 12 months 454 392 to total turnover. The disallowance arose from certain expenses
Deferred income tax assets to be incurred in foreign currency being reduced from export turnover
recovered within 12 months 136 169 but not reduced from total turnover. The tax demand for fiscal
Total deferred income tax assets 590 561 2007 and fiscal 2008 also includes disallowance of portion of profit
Deferred income tax liability to be earned outside India from the STP units and disallowance of profits
settled after 12 months (214) (63) earned from SEZ units. The matter for fiscal 2005, fiscal 2006 and
Deferred income tax liability to be fiscal 2007 is pending before the Commissioner of Income Tax
settled within 12 months (72) (120) (Appeals) Bangalore.
Total deferred income tax liabilities (286) (183) The Company is contesting the demand, and the Management
including its tax advisors, believe that its position will likely be upheld
Deferred tax assets and deferred tax liabilities have been offset in the appellate process. The Management believes that the ultimate
wherever the Company has a legally enforceable right to set off current outcome of this proceeding will not have a material adverse effect on
tax assets against current tax liabilities and where the deferred tax the Company's financial position and results of operations.
assets and deferred tax liabilities relate to income taxes levied by the
same taxation authority. 2.18. Earnings per equity share
In assessing the realizability of deferred income tax assets, the The following is a reconciliation of the equity shares used in the
Management considers whether some portion or all of the deferred computation of basic and diluted earnings per equity share :
income tax assets will not be realized. The ultimate realization of
Particulars Year ended March 31,
deferred income tax assets is dependent upon the generation of future
2012 2011
taxable income during the periods in which the temporary differences
Basic earnings per equity share –
become deductible. The Management considers the scheduled
weighted average number of equity
reversals of deferred income tax liabilities, projected future taxable
shares outstanding (1) 57,13,65,494 57,11,80,050
income, and tax planning strategies in making this assessment. Based
Effect of dilutive common
on the level of historical taxable income and projections for future
equivalent shares – share options
taxable income over the periods in which the deferred income tax
outstanding 30,648 1,88,308
assets are deductible, the Management believes that the Company will
Diluted earnings per equity share –
realize the benefits of those deductible differences. The amount of the
weighted average number of equity
deferred income tax assets considered realizable, however, could be
shares and common equivalent
reduced in the near term if estimates of future taxable income during
shares outstanding 57,13,96,142 57,13,68,358
the carry forward period are reduced. (1)
Excludes treasury shares
The gross movement in the deferred income tax account for the years
For the year ended March 31, 2012, and March 31, 2011 there were
ended March 31, 2012 and March 31, 2011 is as follows :
no outstanding options to purchase equity shares which had an
in ` crore
anti-dilutive effect.
Particulars Year ended March 31,
2012 2011
Net deferred income tax asset at the
beginning 378 232
Translation differences (23) 9
Credits relating to temporary differences
(Refer to Note 2.17) (54) 134
Temporary difference on available-for-sale
financial asset (Refer to Note 2.2) 3 3
Net deferred income tax asset at the end 304 378

Financial statements as per IFRS | 59

Additional Information Infosys Annual Report 2011-12

2.19. Related party transactions

List of subsidiaries
Particulars Country Holding as of March 31,
2012 2011
Infosys BPO Limited India 99.98% 99.98%
Infosys Technologies (Australia) Pty. Limited Australia 100% 100%
Infosys Technologies (China) Co. Limited China 100% 100%
Infosys Consulting Inc. (1) U.S. – 100%
Infosys Technologies S. de R. L. de C. V. Mexico 100% 100%
Infosys BPO s.r.o. (2) Czech Republic 99.98% 99.98%
Infosys BPO (Poland) Sp.Z.o.o (2) Poland 99.98% 99.98%
Infosys BPO (Thailand) Limited (2)(3) Thailand – –
Infosys Technologies (Sweden) AB Sweden 100% 100%
Infosys Tecnologia do Brasil Ltda Brazil 100% 100%
Infosys Consulting India Limited (4) India 100% 100%
Infosys Public Services Inc. U.S. 100% 100%
Infosys Technologies (Shanghai) Co. Limited China 100% 100%
McCamish Systems LLC (Refer to Note 2.3) (2) U.S. 99.98% 99.98%
Portland Group Pty. Limited (Refer to Note 2.3) (2)(5) Australia 99.98% –
Portland Procurement Services Pty. Limited (Refer to Note 2.3) (2)(5) Australia 99.98% –
(1)
On October 7, 2011, the Board of Directors of Infosys Consulting Inc., approved the termination and winding down of the entity, and entered into a scheme of amalgamation and initiated
its merger with Infosys Limited. The termination of Infosys Consulting Inc. became effective on January 12, 2012, in accordance with the Texas Business Organizations Code. Effective
January 12, 2012, the assets and liabilities of Infosys Consulting Inc., have been transferred to Infosys Limited.
(2)
Wholly-owned subsidiaries of Infosys BPO.
(3)
During the year ended March 31, 2011, Infosys BPO (Thailand) Limited was liquidated.
(4)
On February 9, 2012, Infosys Consulting India Limited filed a petition in the Honorable High court of Karnataka for its merger with Infosys Limited.
(5)
On January 4, 2012 Infosys BPO acquired 100% of the voting interest in Portland Group Pty. Ltd.

Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
List of other related parties
Particulars Country Nature of relationship
Infosys Limited Employees' Gratuity Fund Trust India Post-employment benefit plan of Infosys
Infosys Limited Employees' Provident Fund Trust India Post-employment benefit plan of Infosys
Infosys Limited Employees' Superannuation Fund Trust India Post-employment benefit plan of Infosys
Infosys BPO Limited Employees' Superannuation Fund Trust India Post-employment benefit plan of Infosys BPO
Infosys BPO Limited Employees' Gratuity Fund Trust India Post-employment benefit plan of Infosys BPO
Infosys Limited Employees' Welfare Trust India Employee Welfare Trust of Infosys
Infosys Science Foundation India Controlled trust
Note : Refer to Note 2.12 for information on transactions with post-employment benefit plans mentioned above table.

Transactions with key management personnel

The following table describes the compensation to key management personnel which comprise directors and members of the Executive Council :
in ` crore
Particulars Year ended March 31,
2012 2011
Salaries and other employee benefits 46 33

2.20. Segment reporting

IFRS 8 establishes standards for the way that public business enterprises report information about operating segments and related disclosures
about products and services, geographic areas, and major customers. The Company's operations predominantly relate to providing
end-to-end business solutions thereby enabling clients to enhance business performance, delivered to customers globally operating in various
industry segments. Effective quarter ended June 30, 2011, the Company reorganized its business to increase its client focus. Consequent to
the internal reorganization there were changes effected in the reportable segments based on the ‘Management approach’ as defined in IFRS 8,
Operating Segments. The Chief Operating Decision Maker evaluates the Company's performance and allocates resources based on an analysis of
various performance indicators by industry classes and geographic segmentation of customers.
Accordingly, segment information has been presented both along industry classes and geographic segmentation of customers. The accounting
principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments,
and are as set out in the significant accounting policies. Industry segments for the Company are primarily Financial Services and Insurance
(FSI) comprising enterprises providing banking, finance and insurance services, Manufacturing (MFG), enterprises in the Energy, Utilities and
Communication and Services (ECS) and Retail, Logistics, Consumer packaged goods and Life sciences (RCL).

60 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Geographic segmentation is based on business sourced from that geographic region and delivered from both onsite and offshore. North America
comprises the U.S., Canada and Mexico, Europe includes continental Europe (both the east and the west), Ireland and the U.K., and the
Rest of the World comprising all other places except those mentioned above and India. Consequent to the above change in the composition of
reportable segments, the prior year comparatives have been restated.
Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that
segment. Allocated expenses of segments include expenses incurred for rendering services from the Company's offshore software development
centers and onsite expenses, which 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 assets are used
interchangeably. The Management 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 adjusted against the total income of the Company.
Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably
between segments. The Management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities
since a meaningful segregation of the available data is onerous.
Geographical information on revenue and industry revenue information is collated based on individual customers invoiced or in relation to
which the revenue is otherwise recognized.
2.20.1. Industry segments
in ` crore
Year ended March 31, 2012 FSI MFG ECS RCL Total
Revenues 11,830 6,933 7,232 7,739 33,734
Identifiable operating expenses 5,025 3,033 3,011 3,214 14,283
Allocated expenses 2,965 1,824 1,903 2,036 8,728
Segment profit 3,840 2,076 2,318 2,489 10,723
Unallocable expenses 944
Operating profit 9,779
Other income, net 1,904
Profit before income taxes 11,683
Income tax expense 3,367
Net profit 8,316
Depreciation and amortization 937
Non-cash expenses other than depreciation and amortization 7

in ` crore
Year ended March 31, 2011 FSI MFG ECS RCL Total
Revenues 9,862 5,393 6,614 5,632 27,501
Identifiable operating expenses 4,122 2,311 2,757 2,410 11,600
Allocated expenses 2,456 1,370 1,689 1,418 6,933
Segment profit 3,284 1,712 2,168 1,804 8,968
Unallocable expenses 866
Operating profit 8,102
Other income, net 1,211
Profit before income taxes 9,313
Income tax expense 2,490
Net profit 6,823
Depreciation and amortization 862
Non-cash expenses other than depreciation and amortization 4

Financial statements as per IFRS | 61

Additional Information Infosys Annual Report 2011-12

2.20.2. Geographic segments

in ` crore
Year ended March 31, 2012 North America Europe India Rest of the Total
World
Revenues 21,538 7,401 748 4,047 33,734
Identifiable operating expenses 9,096 3,214 369 1,604 14,283
Allocated expenses 5,664 1,911 168 985 8,728
Segment profit 6,778 2,276 211 1,458 10,723
Unallocable expenses 944
Operating profit 9,779
Other income, net 1,904
Profit before income taxes 11,683
Income tax expense 3,367
Net profit 8,316
Depreciation and amortization 937
Non-cash expenses other than depreciation and amortization 7
in ` crore
Year ended March 31, 2011 North America Europe India Rest of the Total
World
Revenues 17,958 5,927 599 3,017 27,501
Identifiable operating expenses 7,658 2,467 281 1,194 11,600
Allocated expenses 4,555 1,488 144 746 6,933
Segment profit 5,745 1,972 174 1,077 8,968
Unallocable expenses 866
Operating profit 8,102
Other income, net 1,211
Profit before income taxes 9,313
Income tax expense 2,490
Net profit 6,823
Depreciation and amortization 862
Non-cash expenses other than depreciation and amortization 4

2.20.3. Significant clients

No client individually accounted for more than 10% of the revenues in the years ended March 31, 2012 and March 31, 2011.

2.21. Litigation
On May 23, 2011, we received a subpoena from a grand jury in the United States District Court for the Eastern District of Texas. The subpoena
requires that we provide the grand jury certain documents and records related to our sponsorships for, and uses of, B1 business visas.
We are complying with the subpoena. In connection with the subpoena, during a recent meeting with the United States Attorney's Office for
the Eastern District of Texas, we were advised that we and certain of our employees are targets of the investigation. We intend to have further
discussions with the U.S. Attorney's Office regarding this matter, however, we cannot predict the final outcome of the investigation by, or
discussions with, the U.S. Attorney's Office.
In addition, the U.S. Department of Homeland Security (‘DHS’ or ‘the Department’) is undertaking a review of our employer eligibility verifications
on Form I-9 with respect to our employees working in the U.S. In connection with this review, we have been advised that the DHS has found
errors in a significant percentage of our Forms I-9 that the Department has reviewed. In the event that the DHS ultimately concludes that our
Forms I-9 contained errors, the Department would likely impose fines and penalties on us. At this time, we cannot predict the final outcome of
the review by, or the discussions with, the DHS or other governmental authority regarding the review of our Forms I-9.
In light of the fact that, among other things, the foregoing investigation and review are ongoing and we remain in discussions with the
U.S. Attorney's Office regarding these matters, we are unable to make an estimate of the amount or range of loss that we could incur from
unfavorable outcomes in such matters.
In the event that any government undertakes any actions which limit any visa program that we utilize, or imposes sanctions, fines or penalties
on us or our employees, this could materially and adversely affect our business and results of operations.

62 | Financial statements as per IFRS

Infosys Annual Report 2011-12 Additional Information

Additional information

Employee strength and revenue growth since 1996

Fiscal Employees Growth % IFRS (US $ million) (1) IFRS (` crore) (2)
Revenues Growth % Net Income Growth % Income Growth % PAT Growth %
1996 1,172 30 27 47 7 72 89 60 21 58
1997 1,705 45 40 49 9 27 139 57 34 60
1998 2,605 53 68 73 (3)
13 60 258 85 60 79
1999 3,766 45 121 77 (3)
30 119 509 98 133 120
2000 5,389 43 203 68 61 102 882 73 286 115
2001 9,831 82 414 103 132 115 1,901 115 623 118
2002 10,738 9 545 32 164 25 2,604 37 808 30
2003 15,876 48 754 38 195 18 3,640 40 955 18
2004 25,634 61 1,063 41 270 39 4,853 33 1,244 30
2005 36,750 43 1,592 50 419 55 7,130 47 1,846 48
2006 52,715 43 2,152 35 555 32 9,521 34 2,458 33
2007 72,241 37 3,090 44 850 53 13,893 46 3,850 57
2008 91,187 26 4,176 35 1,155 36 16,692 20 4,659 21
2009 1,04,850 15 4,663 12 1,281 11 21,693 30 5,975 28
2010 1,13,796 9 4,804 3 1,313 2 22,742 5 6,219 4
2011 1,30,820 15 6,041 26 1,499 14 27,501 21 6,823 10
2012 1,49,994 15 6,994 16 1,716 15 33,734 23 8,316 22
5-year CAGR 16 18 15 19 17
(1)
The data for the year 2007 and prior years is as per U.S. GAAP.
(2)
The data for the year 2008 and prior years is as per consolidated Indian GAAP.
(3)
Excludes a one-time deferred stock compensation expense arising from a stock split amounting to US $13 million and US $2 million in fiscal 1999 and 1998 respectively.

Employee strength of the Infosys group Marketing offices of the Infosys group
The employee strength of the Infosys group as at March 31, 2012 was We have 65 marketing offices around the world of which 61 are located
1,49,994 as compared to 1,30,820 as at March 31, 2011. The details outside India – 18 in the U.S., four each in Australia and Germany,
of functional classification are as follows : three each in Canada, Switzerland, UAE and the U.K., two each in
Particulars 2012 2011 Czech Republic, Japan and France and one each in Belgium, Brazil,
Functional Denmark, Finland, Hong Kong, Ireland, Malaysia, Mauritius, Mexico,
classification the Netherlands, New Zealand, Norway, Russia, Singapore, Spain, South
Software Africa and Sweden. We have four marketing offices in India. Addresses of
professionals 1,41,788 94.5% 1,23,811 94.6% offices are provided in the Global Presence section of the Annual Report.
Sales and American Depositary Share (ADS)
support 8,206 5.5% 7,009 5.4%
About ADS
Gender
Male 97,842 65.2% 86,604 66.2% The American Depositary Shares (ADS) are negotiable certificates
Female 52,152 34.8% 44,216 33.8% evidencing ownership of an outstanding class of stock in a non-U.S.
Age profile company. ADS are created when ordinary shares are delivered to a
20 – 25 65,519 43.7% 59,897 45.8% custodian bank in the domestic market, which then instructs a depositary
26 – 30 51,478 34.3% 45,182 34.5% bank in the U.S. to issue ADS based on a predetermined ratio. ADS are
31 – 40 29,122 19.4% 23,021 17.6% SEC-registered securities and may trade freely, just like any other security,
41 – 50 3,075 2.0% 2,219 1.7% either on an exchange or in the over-the-counter market.
51 – 60 710 0.5% 452 0.3% Difference between an ADS and a GDR
60 and above 90 0.1% 49 0.1%
ADS and Global Depositary Receipts (GDR) have the same functionality
Software development centers of the Infosys group – they both evidence ownership of foreign securities deposited with a
We have 74 global development centers of which 33 are in India – custodian bank. ADS represent securities that are listed in the U.S., while
nine in Bangalore, five in Chennai, four in Pune, three in Mangalore, GDR represent securities listed outside the U.S., typically in the U.K.
two each in Bhubaneswar, Chandigarh, Hyderabad, Jaipur and Voting rights of ADS holders
Thiruvananthapuram, and one each in New Delhi and Mysore. We In the event of a matter submitted to the holders of ordinary shares for
have a global development center in Toronto, Canada. In addition, we a vote, the ADS holders on record as at a particular date will be allowed
have twelve proximity development centers in the U.S. – two in Atlanta to instruct the depositary bank to exercise the vote with respect to the
and one each in Fremont, Quincy, Lisle, Bridgewater, Phoenix, Plano, equity shares representing the ADS held by them.
Charlotte, Houston, Hartford and Bentonville; eight in Australia; six in
China; two each in Mexico, New Zealand and the U.K.; and one each Entitlement to cash dividends
in Czech Republic, Japan (Tokyo), Mauritius, Poland, Philippines, Whenever dividends are paid to ordinary shareholders, cash dividends
Singapore, France and Brazil. Infosys BPO Limited, Infosys Australia, to ADS holders are declared in local currency and paid in U.S. dollars,
Infosys China, Infosys Shanghai, Infosys Consulting, Infosys Mexico, based on the prevailing exchange rate, by the depositary bank, net of
Infosys Sweden, Infosys Brasil and Infosys Public Services are our the depositary's fees and expenses.
wholly-owned subsidiaries. Disclosure policy
We have a written disclosure policy, which covers interaction with
external constituents such as analysts, fund managers and the media.

Additional information | 63
 Select historical data
64 | Select historical data

Additional Information
in ` crore, except per share data, other information and ratios

Particulars 1982 2003 2004 2005 2006 2007 2008 2009 2010 2011(4) 2012(4)
Financial performance
Income 0.12 3,623 4,761 6,860 9,028 13,149 15,648 20,264 21,140 25,385 31,254
Operating profit (PBIDTA) 0.04 1,272 1,584 2,325 2,989 4,225 4,963 6,906 7,360 8,414 10,061
Interest – – – – – – – – – – –
Depreciation – 189 231 268 409 469 546 694 807 740 794
Provision for taxation – 201 227 325 303 352 630 895 1,717 2,378 3,110
Profit after tax (1) 0.04 958 1,243 1,859 2,421 3,777 4,470 5,819 5,755 6,443 7,986
Dividend – 179 196 310 412 649 758 1,345 1,434 1,723 2,125
One-time / special dividend – – 668 – 830 – 1,144 – – 1,722 574
Margins (%)
Operating profit margin (PBIDTA) 33.3 35.1 33.3 33.9 33.1 32.1 31.7 34.1 34.8 33.1 32.2
Net profit margin (1) 33.3 26.4 26.1 27.1 26.8 28.7 28.6 28.7 27.2 25.4 25.6
Return on average net worth (1) 96.9 38.8 40.7 43.8 39.9 41.9 36.3 37.2 28.9 27.7 29.4
Return on average capital employed 96.9 46.9 48.1 51.4 44.9 45.7 41.4 42.9 37.2 37.6 40.9
Per share data (`) (2)
Basic EPS (1) – 18.09 23.43 34.63 44.34 67.82 78.24 101.65 100.37 112.26 139.07
Dividend – 3.38 3.69 5.75 7.50 11.50 13.25 23.50 25.00 30.00 37.00
One-time / special dividend – – 12.50 – 15.00 – 20.00 – – 30.00 10.00
Book value – 53.98 61.03 96.87 125.15 195.41 235.84 310.90 384.01 426.73 518.21
Financial position
Share capital – 33 33 135 138 286 286 286 287 287 287
Reserves and surplus 0.04 2,828 3,220 5,107 6,759 10,876 13,204 17,523 21,749 24,214 29,470
Net worth 0.04 2,861 3,253 5,242 6,897 11,162 13,490 17,809 22,036 24,501 29,757
Debt – – – – – – – – – – –
Gross block – 1,273 1,570 2,183 2,837 3,889 4,508 5,986 6,357 6,934 7,173
Capital expenditure – 219 430 794 1,048 1,443 1,370 1,177 581 1,152 1,296
Cash and cash equivalents 0.02 1,639 1,819 1,683 3,779 5,610 7,689 10,289 11,297 15,165 19,557
Investment in liquid mutual funds and
certificate of deposits – – 930 1,168 684 – – – 3,497 119 341
Net current assets 0.06 2,018 1,220 2,384 3,832 7,137 8,496 12,288 13,141 17,541 22,428
Total assets 0.04 2,861 3,253 5,242 6,897 11,162 13,490 17,846 22,268 28,854 35,815
Shareholding related
Number of shareholders 7 77,010 66,945 1,58,725 1,95,956 4,88,869 5,55,562 4,96,907 3,81,716 4,16,623 4,60,139
Market capitalization – period end NA 26,847 32,909 61,073 82,154 1,15,307 82,362 75,837 1,50,110 1,86,100 1,64,592
Public shareholding (%) (3) – 68.32 65.56 70.20 66.55 64.35 64.31 64.38 65.32 66.36 70.49
Credit rating

Infosys Annual Report 2011-12

Standard & Poor's BBB BBB BBB BBB+ BBB+ BBB+ BBB+ BBB+
Dun & Bradstreet 5A1 5A1 5A1 5A1 5A1 5A1 5A1 5A1 5A1
Corporate governance rating
CRISIL – (GVC) Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1
ICRA CGR 1 CGR 1 CGR 1 CGR 1 CGR 1 CGR 1 CGR 1 CGR 1 CGR 1
Notes : The above figures are based on Indian GAAP (standalone).
(1)
Excluding extraordinary activities / exceptional items
(2)
Calculated on a per share basis, adjusted for bonus issues in previous years
(3)
Total public shareholding as defined under Clause 40A of the Listing Agreement (excludes shares held by founders and American Depositary Receipt holders)
(4)
The Balance Sheet Items of 2011 and 2012 are in accordance with the new Schedule VI, which will affect only the Net Current Assets, and Total Assets figures.
Infosys Annual Report 2011-12 Additional Information

Revenue segmentation

Geographic segmentation Geographic segmentation – Fiscal 2012

in %
Particulars 2012 2011 2.2
North America 63.9 65.3 12.0
Europe 21.9 21.5
India 2.2 2.2
Rest of the World 12.0 11.0
Total 100.0 100.0 21.9
63.9
Industry segmentation
in %
Particulars 2012 2011
Insurance, Banking and Financial services 35.1 35.9
Banking and Financial services 27.9 27.8
North America India
Insurance 7.2 8.1
Europe Rest of the World
Manufacturing 20.5 19.6
Retail and Life Sciences 23.0 20.5
Retail and Consumer Packged Goods 15.7 14.1
Transport and Logistics 1.8 1.9
Industry segmentation – Fiscal 2012
Life Sciences (1) 3.9 3.5
Health Care (1) 1.6 1.0
Energy, Utilities, Communications and
Services 21.4 24.0
Energy and Utilities 5.9 6.1 21.4
Telecom 10.2 12.9
Others (1) 5.3 5.0 35.1
Total 100.0 100.0
(1)
Reported under ‘Services’ and ‘Others’ in fiscal year 2011
23.0
Project type
The project types (excluding products) are as follows : 20.5
in %
Particulars 2012 2011
Insurance, Banking and Retail and Life Sciences
Fixed price 39.3 40.3 Financial Services
Time and material 60.7 59.7 Energy, Utilities,
Manufacturing Communications and
Total 100.0 100.0 Services

Service offering
in %
Particulars 2012 2011 Service offering – Fiscal 2012
Business IT Services 63.0 62.8
Application Development 16.8 16.0
Application Maintenance 21.6 22.9
5.8
Infrastructure Management Services 6.0 6.3
Testing Services 7.9 7.5
Product Engineering Services 3.4 2.4
Business Process Management 4.6 4.9 31.2
Others 2.7 2.8 63.0
Consulting, Package Implementation and
Others 31.2 31.2
Products, Platforms and Solutions 5.8 6.0
Products 4.6 4.9
Business Process Management (BPM)
Platform (1) 0.9 0.7
Business IT Services Consulting, Package
Others 0.3 0.4 Implementation and
Total 100.0 100.0 Products, Platforms and
Others
Solutions
(1)
Earlier shown under Business IT Services

Note : The figures mentioned in the above tables in this section are based on
IFRS (audited) financial statements.

Revenue segmentation | 65
Additional Information Infosys Annual Report 2011-12

Statutory obligations

Software Technology Park scheme

We have set up Software Technology Parks (STPs), which are 100% export-oriented units, for the development of software at Bangalore,
Bhubaneswar, Chandigarh, Chennai, Hyderabad, Mangalore, Mysore, Pune and Thiruvananthapuram. Certain capital items purchased for these
centers are eligible for 100% customs and excise duty exemption, subject to fulfillment of stipulated export obligations, which was five times the
value of duty-free imports of capital goods, or duty-free purchase of goods subject to excise, over a period of five years on a yearly basis. Beginning
April 2001, the export obligation on duty-free import of capital goods or duty-free purchase of goods subject to excise is thrice the value of
such goods over a period of five years. Beginning April 2002, the export obligation on duty-free import of capital goods or duty-free purchase
of goods subject to excise is thrice the value of such goods over a period of three years. Beginning April 2003, the units are required to achieve
positive Net Foreign Exchange earnings (NFE) only. The period to achieve the net positive NFE is five years from the date of commencement of
production / renewal of the license for the unit.
The non-fulfillment of export obligations or positive NFE may result in penalties as stipulated by the government, which may have an impact
on future profitability.
We have fulfilled our export obligations and achieved positive NFE for all our operations under the STP scheme.

Special Economic Zone scheme

We have set up Special Economic Zone (SEZ) units, which are 100% export-oriented units, for the development of software at Chennai,
Chandigarh, Pune, Mangalore, Thiruvananthapuram, Mysore, Hyderabad, Jaipur and Gurgaon.
As per the SEZ Act, the unit will be eligible for a deduction of 100% of profits or gains derived from the export of services for the first five years
from commencement of provision of services and 50% of such profits or gains for a further five years. Certain tax benefits are also available for
a further five years, subject to the unit meeting defined conditions. Other fiscal benefits including indirect tax waivers are being extended for
setting up, operating and maintaining the unit.
The units operating under the SEZ scheme are required to achieve positive NFE over a period of five years from the date of commencement.
We have achieved positive foreign exchange earnings for all our operations under the SEZ scheme. However, in the case of SEZs operationalized
during the year, the positive foreign exchange earnings will be met in the future.

Taxation
We benefit from certain significant tax incentives provided to the software industry under Indian Tax laws. The Company was eligible and had
claimed tax benefit under STP scheme for export profits earned by STP units upto the year ended March 31, 2011. The STP tax holiday scheme
expired on March 31, 2011. Currently, the profit of SEZ units in proportion of export turnover to total turnover of the units is eligible for deduction.
As per the SEZ Act, the SEZ units are eligible for a deduction of 100% of profits or gains derived from the export of services for the first five years
from commencement of provision of services and 50% of such profits or gains for the next five years. Certain tax benefits are also available for
a further five years subject to the units meeting defined conditions.
The details regarding the commencement of operations at our SEZ locations and the year upto which the deduction under the SEZ scheme is
available are as follows :
Location as SEZ Developer, Units at Year of Tax exemption
Co-Developer and Unit SEZ commencement Claimed Available
(1)
from (1) upto (1)
Infosys Limited, SEZ
SEZ Co-Developer at Mahindra World City, Chennai Unit I 2006 2006 2020
Unit II 2011 2011 2025
SEZ Unit at Rajiv Gandhi Chandigarh Technology Park, Chandigarh Unit I 2007 2007 2021
SEZ Developer at Pune Unit I 2008 2008 2022
SEZ Developer at Mangalore Unit I 2008 2008 2022
SEZ Co-Developer at Techno Park, Thiruvananthapuram Unit I 2010 2010 2024
SEZ Developer at Mysore Unit I 2011 2011 2025
SEZ Developer at Hyderabad Unit I 2011 2011 2025
SEZ Co-Developer at Mahindra World City Jaipur Ltd., Jaipur Unit I 2012 2012 2026
Infosys BPO, SEZ
SEZ Unit at Infosys Ltd., Pune Unit I 2008 2008 2022
Unit II 2012 2012 2026
SEZ Co-Developer at Mahindra World City Jaipur Ltd., Jaipur Unit I 2009 2009 2023
SEZ Unit at DLF, Gurgaon Unit I 2009 2009 2023
(1)
Financial year

66 | Statutory obligations
Infosys Annual Report 2011-12 Additional Information

The benefits of these tax incentive programs have historically resulted in an effective tax rate, well below the statutory rates for us. There is no
assurance that the Government of India will continue to provide these incentives.
The government may reduce or eliminate the tax exemptions provided to Indian exporters at any time in the future. This may result in our export
profits being fully taxed, and may adversely affect the post-tax profits in the future.
On a full tax-paid basis, without any duty concessions on equipment, hardware and software, our post-tax profits for the relevant years are
estimated as follows :
in ` crore, except per share data
Particulars 2012 2011 2010
Profit before tax 11,683 9,313 7,900
Less : Additional depreciation on duty waived for certain assets 53 49 70
Reduction in other income 81 53 49
Adjusted profit before tax 11,549 9,211 7,781
Less : Income tax on the above on full tax basis 3,895 3,162 2,776
Restated profit after tax 7,654 6,049 5,005
Restated basic EPS (`) 133.96 105.89 87.74
Note : The figures above are based on IFRS financial statements. However, it may be noted that this is only an academic exercise. We have provided for Income Tax in full in the respective
years and there is no carried-forward liability on this account.

Statutory obligations | 67
Additional Information Infosys Annual Report 2011-12

Human resource valuation

A fundamental dichotomy in accounting practices is between human and non-human capital. As a standard practice, non-human capital is
considered as assets and reported in the financial statements, whereas human capital is mostly ignored by accountants. The definition of wealth
as a source of income inevitably leads to the recognition of human capital as one of the several forms of wealth such as money, securities and
physical capital. As a standard practice, Infosys reports the value of its employees using the Lev & Schwartz model. We have developed a new
model to quantify this value, in partnership with GIST Advisory this year.
The Infosys GIST-HCX Model is based on a present value calculation of the increase in future earnings of employees during their employment
at Infosys. Unlike conventional models, it also accounts for the impact of attrition on our human capital value, and therefore also quantifies the
value of the positive human capital externality being generated by Infosys. Human Capital Externality refers to the benefit derived by society
when employees whose human capital value is enhanced due to training and employee development at Infosys, leave the company.
The model discounts future earnings at an appropriate discount rate, and utilizes a long-run inflation rate consistent with the Reserve Bank
of India’s target for inflation expectations.
in ` crore, unless stated otherwise
2012 2011 Annual Change
Employees (No.)
Software professionals 1,41,788 1,23,811 14.52%
Support 8,206 7,009 17.08%
Total 1,49,994 1,30,820 14.66%
Value of human capital
Software professionals 1,15,900 89,507 29.49%
Support 9,817 8,640 13.62%
Total 1,25,717 98,147 28.09%
Value of human capital externality
Software professionals 6,182 4,702 31.48%
Support 649 563 15.28%
Total 6,831 5,265 29.74%
Total value of human capital and human capital externality 1,32,548 1,03,412 28.17%
Ratio
Value of human capital per employee 0.84 0.75 12.00%
Assumptions :
1. Long run inflation rate assumed at 5%
2. Discounting rate assumed at 4%

68 | Human resource valuation

Infosys Annual Report 2011-12 Additional Information

Value-added statement
in ` crore, except as otherwise stated
2012 % 2011 % Growth %
Value-added
Income 33,734 27,501 22.7
Less : Operating expenses excluding personnel costs
Software development and business process management expenses 2,634 2,083
Selling and marketing expenses 397 294
General and administration expenses 1,647 1,304
Value-added from operations 29,056 23,820 22.0
Other income (including exceptional items) 1,904 1,211
Total value-added 30,960 25,031 23.7
Distribution of value-added
Human resources
Salaries and bonus 18,340 59.2 14,856 59.4 23.5
Providers of capital
Dividend (1) 2,699 8.7 3,445 13.8 (21.7)
Minority interest – – – – –
Interest on debt – – – – –
2,699 8.7 3,445 13.8 (21.7)
Taxes
Corporate income taxes 3,367 10.9 2,490 9.9 35.2
Dividend tax (1) 438 1.4 568 2.3 (22.9)
3,805 12.3 3,058 12.2 24.4
Income retained in business
Depreciation and amortization 937 3.0 862 3.4 8.7
Retained in business 5,179 16.8 2,810 11.2 84.3
6,116 19.8 3,672 14.6 66.6
Total 30,960 100.0 25,031 100.0 23.7
Note : The figures above are based on IFRS financial statements.
(1)
Considered on accrual basis

Value-added statement | 69
Additional Information Infosys Annual Report 2011-12

Brand valuation

The strength of the invisible Brand strength multiple is a function of several factors such as
leadership, stability, market, global reach, trend, support and
We have used various models for evaluating assets of the Balance Sheet
protection. We have evaluated these factors on a scale of 1 to 100
periodically to bring advances in financial reporting to the notice of
internally, based on the information available.
our shareholders. The aim of such modeling is to lead the debate on
the Balance Sheet of the next millennium. These models are still the Brand valuation
subject of debate among researchers and using the data in projecting in ` crore
the future is risky. We are not responsible for any direct, indirect or
2012 2011 2010
consequential losses suffered by any person using these models or data.
Profit before interest and tax 11,683 9,313 7,900
A Balance Sheet discloses the financial position of a company. Less : Non-brand income 1,714 1,090 891
The financial position of an enterprise is influenced by the economic Adjusted profit before tax 9,969 8,223 7,009
resources it controls, its financial structure, liquidity and solvency, and Inflation factor 1.000 1.088 1.184
its capacity to adapt to changes in the business environment. However, Present value of brand profits 9,969 8,947 8,299
it is becoming increasingly clear that intangible assets have a significant Weightage factor 3 2 1
role in defining the growth of a high-tech company.
Weighted average profits 9,350 – –
Valuing the brand Remuneration of capital 1,519 – –
Brand-related profits 7,831 – –
The wave of brand acquisitions in the late 1980s exposed the hidden
Tax 2,541 – –
value of highly branded companies, and brought brand valuation to
Brand earnings 5,290 – –
the fore. The values associated with a product or service are
communicated to the consumer through the brand. Consumers no Brand multiple 10.64 – –
longer want just a product or service, they want a relationship based Brand value 56,286 – –
on trust and familiarity. Assumptions :
1. The figures above are based on IFRS financial statements.
A brand is much more than a trademark or a logo. It is a ‘trust mark’ 2. Brand revenue is total revenue excluding other income after adjusting for the cost of
– a promise of quality and authenticity that clients can rely on. Brand earning such income, since this is an exercise to determine our brand value as the
equity is the value addition provided to a product or a company by Company and not for any of our products or services.
3. Inflation is assumed at 8.80% per annum.
its brand name. It is the financial premium that a buyer is willing to 4. 5% of the average capital employed is used for purposes other than promotion of the
pay for the brand over a generic or less worthy brand. Brand equity brand and tax rate is at 32.45%.
is not created overnight. It is the result of the relentless pursuit of 5. The earnings multiple is based on our ranking against the industry average based
quality in manufacturing, selling, servicing, advertising and marketing. on certain parameters (exercise undertaken internally and based on available
It is integral to the quality of client experiences in dealing with the information).
in ` crore
Company and its services over a period.
The sixth annual BRANDZ™ Top 100 Most Valuable Global 2012 2011 2010
Brands ranking published in conjunction with Bloomberg and Brand value 56,286 40,509 36,907
Kantar Worldpanel was announced in 2011 by Millward Brown. Market capitalization 1,64,592 1,86,100 1,50,110
According to the evaluation of the ranking panelists, the contribution Brand value as a percentage
of brand value in commanding price premiums and decreased cost of market capitalization (%) 34.2 21.8 24.6
of entry into new markets and categories is significant. Companies Brand value / revenue (x) 1.67 1.47 1.62
adopt strategic approaches and best practice methodologies to
improve their brand value.

Approach to brand valuation

The task of measuring brand value is a complex process. Several
models are available for assessing brand value. The most widely used
is the brand-earnings-multiple model. There are several variants of
this model.
We have adapted the generic brand-earnings-multiple model
(reference : Valuation of Trademarks and Brand Names by Michael
Birkin in the book, Brand Valuation, edited by John Murphy and
published by Business Books Limited, London) to value our corporate
brand, ‘Infosys’. The methodology followed for valuing our brand is
as follows :
• Determine brand profits by eliminating the non-brand profits from
the total profits
• Restate the historical profits at present-day values
• Provide for the remuneration of capital to be used for purposes
other than promotion of the brand
• Adjust for taxes
• Determine the brand strength or brand earnings multiple.

70 | Brand valuation
Infosys Annual Report 2011-12 Additional Information

Economic Value-Added (EVA®) statement

Economic Value-Added is the surplus generated by an entity after meeting an equitable charge towards providers of capital. It is the post-tax
return on capital employed (adjusted for the tax shield on debt) less the cost of capital employed. Companies which earn higher returns than
cost of capital create value, and companies which earn lower returns than cost of capital are deemed harmful for shareholder value.
in ` crore, except as otherwise stated
2012 2011 2010 2009 2008
Cost of capital
Return on risk-free investment (%) 7.99 7.66 7.20 7.00 8.00
Market premium (%) 5.00 5.00 5.00 7.00 7.00
Beta variant 0.71 0.71 0.68 0.74 0.76
Cost of equity (%) 11.54 11.21 10.60 12.18 13.32
Average debt / total capital (%) – – – – –
Cost of debt – net of tax (%) NA NA NA NA NA
Weighted Average Cost of Capital (WACC) (%) 11.54 11.21 10.60 12.18 13.32
Average capital employed 30,382 25,688 21,634 17,431 12,527
Economic Value-Added (EVA®)
Operating profits 9,779 8,102 6,910 6,421 4,640
Less : Tax 3,367 2,490 1,681 919 685
Cost of capital 3,506 2,880 2,293 2,123 1,669
Economic Value-Added 2,906 2,732 2,936 3,379 2,286
Enterprise value
Market value of equity 1,64,592 1,86,100 1,50,110 75,837 82,362
Add : Debt – – – – –
Less : Cash and cash equivalents 20,968 16,810 15,819 10,993 8,307
Enterprise value 1,43,624 1,69,290 1,34,291 64,844 74,055
Return ratios
PAT / average capital employed (%) 27.4 26.6 28.7 34.3 37.2
EVA® / average capital employed (%) 9.6 10.6 13.6 19.4 18.2
Enterprise value / average capital employed (x) 4.7 6.6 6.2 3.7 5.9
Growth (%)
Operating profits 20.7 17.3 7.6 38.4 19.7
Average capital employed 18.3 18.7 24.1 39.1 37.0
EVA® 6.4 (6.9) (13.1) 47.8 7.7
Market value of equity (11.6) 24.0 97.9 (7.9) (28.6)
Enterprise value (15.2) 26.1 107.1 (12.4) (32.2)
Notes : Cost of equity = return on risk-free investment + expected risk premium on equity investment adjusted for the beta variant in India.
The figures above are based on IFRS financial statements. The data for the year 2008 is as per consolidated Indian GAAP.
Cash and cash equivalents include investments in certificate of deposits and investments in available-for-sale financial assets.

4,000 50%

3,500
40%
3,000

2,500 30%
2,000

1,500 20%

1,000
10%
500

0 0%
2008 2009 2010 2011 2012
2,286 3,379 2,936 2,732 2,906
37.2% 34.3% 28.7% 26.6% 27.4%

Economic Value-Added (EVA®) statement | 71

Additional Information Infosys Annual Report 2011-12

Balance Sheet including intangible assets

in ` crore
Particulars As at March 31,
2012 2011
ASSETS
Current assets
Cash and cash equivalents 20,591 16,666
Available-for-sale financial assets 32 21
Investment in certificates of deposit 345 123
Trade receivables 5,882 4,653
Unbilled revenue 1,873 1,243
Derivative financial instruments – 66
Prepayments and other current assets 1,523 917
Total current assets 30,246 23,689
Non-current assets
Property, plant and equipment 5,409 4,844
Goodwill 993 825
Intangible assets
Brand value 56,286 40,509
Human resources value 1,25,717 98,147
Other intangible assets 173 48
Available-for-sale financial assets 12 23
Deferred income tax assets 316 378
Income tax assets 1,037 993
Other non-current assets 162 463
Total non-current assets 1,90,105 1,46,230
Total assets 2,20,351 1,69,919
LIABILITIES AND EQUITY
Current liabilities
Trade payables 23 44
Derivative financial instruments 42 –
Current income tax liabilities 1,054 817
Client deposits 15 22
Unearned revenue 545 518
Employee benefit obligations 498 140
Provisions 133 88
Other current liabilities 2,456 2,012
Total current liabilities 4,766 3,641
Non-current liabilities
Deferred income tax liabilities 12 –
Employee benefit obligations – 259
Other non-current liabilities 109 60
Total liabilities 4,887 3,960
Equity
Share capital 286 286
Share premium 3,089 3,082
Retained earnings 29,816 23,826
Capital reserves – intangible assets 1,82,003 1,38,656
Other components of equity 270 109
Total equity attributable to equity holders of the Company 2,15,464 1,65,959
Total liabilities and equity 2,20,351 1,69,919
Notes : The figures above are based on IFRS financial statements.
This Balance Sheet is provided for the purpose of information only. We accept no responsibility for any direct, indirect or consequential losses or damages suffered by any
person relying on the same.

72 | Balance sheet including intangible assets

Infosys Annual Report 2011-12 Additional Information

Intangible assets score sheet

We caution investors that this data is provided only as additional Examples are customer loyalty (reflected by the repeat business of the
information to them. We are not responsible for any direct, indirect or Company) and brand value.
consequential losses suffered by any person using this data.
The score sheet
From the 1840s to the early 1990s, a corporate's value was mainly
driven by its tangible assets – values presented in the corporate Balance We published models for valuing two of our most important intangible
Sheet. The Managements of companies valued these resources and assets – human resources and the ‘Infosys’ brand. This score sheet is
linked all their performance goals and matrices to these assets – return broadly adopted from the intangible asset score sheet provided in the
on investment and capital turnover ratio. The market capitalization book titled, The New Organizational Wealth, written by Dr. Karl-Erik
of companies also followed the value of tangible assets shown in the Sveiby and published by Berrett-Koehler Publishers Inc., San Francisco.
Balance Sheet with the difference seldom being above 25%. In the latter We believe such representation of intangible assets provides a tool to
half of the 1990s, the relationship between market value and tangible our investors for evaluating our market-worthiness.
asset value changed dramatically. By early 2000, the book value of the
assets represented less than 15% of the total market value. In short, Clients
intangible assets are the key drivers of market value in this new economy. The growth in revenue is 15.8% this year, compared to 25.8% in the
A knowledge-intensive company leverages know-how, innovation previous year (in U.S. dollar). Our most valuable intangible asset is our
and reputation to achieve success in the marketplace. Hence, these client base. Marquee clients or image-enhancing clients contributed
attributes should be measured and improved upon year after year 48% of revenues during the year. They gave stability to our revenues
to ensure continual success. Managing a knowledge organization and also reduced our marketing costs.
necessitates a focus on the critical issues of organizational adaptation, The high percentage of revenues, 97.8% from repeat orders during the
survival, and competence in the face of ever-increasing, discontinuous current year, is an indication of the satisfaction and loyalty of our clients.
environmental change. The profitability of a knowledge firm The largest client contributed 4.3% to our revenue, compared to 4.7%
depends on its ability to leverage the learnability of its professionals, during the previous year. The top 5 and 10 clients contributed around
and to enhance the reusability of their knowledge and expertise. 15.5% and 24.6% to our revenue respectively, compared to 15.4% and
The intangible assets of a company include its brand, its ability to 25.7% respectively, during the previous year. Our strategy is to increase
attract, develop and nurture a cadre of competent professionals, and our client base and, thereby, reduce the risk of depending on a few
its ability to attract and retain marquee clients. large clients. During the year, we added 172 new clients compared to
139 in the previous year. We derived revenue from customers located in
Intangible assets 72 countries against 71 countries in the previous year. Sales per client
The intangible assets of a company can be classified into four major grew by around 3.5% from US $9.74 million in the previous year to
categories : human resources, intellectual property assets, internal US $10.08 million this year. Days Sales Outstanding (DSO) was
assets and external assets. 60 days this year compared to 63 days in the previous year.

Human resources Organization

Human resources represent the collective expertise, innovation, During the current year, we invested around 2.53% of the value-added
leadership, entrepreneurship and managerial skills of the employees (2.32% of revenues) in technology infrastructure, and around 2.20%
of an organization. of the value-added (2.02% of revenues) on R&D activities.
A young, fast-growing organization requires efficiency in the area
Intellectual property assets
of support services. The average age of support employees is 32.2
Intellectual property assets include know-how, copyrights, patents, years, as against the previous year's average age of 31.8 years.
products and tools that are owned by a corporation. These assets are The sales per support staff (in `) has increased during the year
valued based on their commercial potential. A corporation can derive compared to the previous year and the proportion of support staff
its revenues from licensing these assets to outside users. to the total organizational staff, has marginally increased over the
previous year.
Internal assets
Internal assets are systems, technologies, methodologies, processes People
and tools that are specific to an organization. These assets give We are in a people-oriented business. We added 45,605 employees
the organization a unique advantage over its competitors in the this year on gross basis (net 19,174) from 43,120 (net 17,024) in
marketplace. These assets are not licensed to outsiders. Examples of the previous year. We added 14,966 laterals this year against 15,883
internal assets include methodologies for assessing risk, methodologies in the previous year. The education index of employees has gone
for managing projects, risk policies and communication systems. up substantially to 3,91,955 from 3,43,407. This reflects the quality
of our employees. Our employee strength comprises people from
External assets
89 nationalities as at March 31, 2012. The average age of employees as
External assets are market-related intangibles that enhance the fitness at March 31, 2012 was 27. Attrition was 14.7% for this year compared
of an organization for succeeding in the marketplace. to 17.0% in the previous year (excluding subsidiaries).

Notes :
1. Marquee or image-enhancing clients are those who enhance the Company's market-worthiness, typically, Fortune 500 clients. They are often reference clients for us.
2. Sales per client is calculated by dividing total revenue by the total number of clients.
3. Repeat business revenue is the revenue during the current year from those clients who contributed to our revenue during the previous year too.
4. Value-added statement is the revenue less payment to all outside resources. The statement is provided in the Value-added statement section of this document.
5. Technology investment includes all investments in hardware and software, while total investment in the organization is the investment in our fixed assets.
6. The average proportion of support staff is the average number of support staff to average total staff strength.
7. Sales per support staff is our revenue divided by the average number of support staff (support staff excludes technical support staff)
8. The education index is shown as at the year end, with primary education calculated as 1, secondary education as 2 and tertiary education as 3.

Intangible assets score sheet | 73

Additional Information Infosys Annual Report 2011-12

External structure – our clients Internal structure – our organization

2012 2011 2012 2011
Revenue growth (%) R&D
In U.S. dollar terms 15.8 25.8 R&D / total revenue (%) 2.02 1.94
In rupee terms 22.7 20.9 R&D / value-added (%) 2.20 2.13
Exports / total revenue (%) 97.8 97.8 Technology investment
Clients Investment / revenue (%) 2.32 2.33
Total 694 620 Investment / value-added (%) 2.53 2.56
Added during the year (gross) 172 139 Total investment
Marquee clients Total investment / total revenue (%) 4.27 4.73
Total 151 138 Total investment / value-added (%) 4.66 5.20
Added during the year (gross) 22 22 Efficiency
Revenue contribution (%) 48 50 Sales per support staff
Revenue derived – number of countries 72 71 US $ million 0.91 0.92
Efficiency ` crore 4.38 4.20
Sales per Client General and administrative expenses /
US $ million 10.08 9.74 revenue (%) 7.08 7.17
` crore 48.61 44.36 Average proportion of support staff (%) 5.46 5.35
Sales and marketing expenses / Stability
revenue (%) 5.21 5.50 Average age of support staff (years) 32.2 31.8
DSO (days) 60 63
Provision for debts / revenue (%) 0.18 0.01 Competence – our people
Stability 2012 2011
Repeat business (%) 97.8 98.0 Total employees 1,49,994 1,30,820
No. of clients accounting > 5% of revenue – – Added during the year
Client concentration Gross 45,605 43,120
Top client (%) 4.3 4.7 Net 19,174 17,024
Top 5 clients (%) 15.5 15.4 Laterals added 14,966 15,883
Top 10 clients (%) 24.6 25.7 Staff education index 3,91,955 3,43,407
Client distribution Employees – number of nationalities 89 88
1 million-dollar + 399 366 Gender classification (%)
5 million-dollar + 190 187 Male 65.2 66.2
10 million-dollar + 132 126 Female 34.8 33.8
20 million-dollar + 79 73 Efficiency
30 million-dollar + 64 53 Value-added / employee (` crore)
40 million-dollar + 50 41 Software professionals 0.23 0.22
50 million-dollar + 40 28 Total employees 0.22 0.20
60 million-dollar + 28 24 Value-added / employee (US $ million)
70 million-dollar + 23 19 Software professionals 0.05 0.05
80 million-dollar + 17 15 Total employees 0.05 0.05
90 million-dollar + 16 11 Stability
100 million-dollar + 13 11 Average age of employees (years) 27 27
200 million-dollar + 2 2 Attrition – excluding subsidiaries (%) 14.7 17.0
300 million-dollar + 1 – Attrition – excluding involuntary
separation (%) 14.0 15.5
Note : The above figures are based on IFRS financial statements.

74 | Intangible assets score sheet

Infosys Annual Report 2011-12 Additional Information

ValueReporting™
At Infosys, we have always believe that information asymmetry between the Management and shareholders should be minimized. Accordingly,
we have been at the forefront in practicing progressive and transparent disclosures. We were the first in India to adopt the U.S. Generally Accepted
Accounting Principles (GAAP). Further, we were the first foreign private issuer in India to file primary financial statements with the Securities
and Exchange Commission (SEC) in accordance with the International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board. This year we have valued our human capital and the human capital positive externality under a new model (1).
Thereafter, we rapidly progressed to additional disclosures that give deeper insights to the way we run our business and our value creation. We
continue to provide additional information even though it is not mandated by law because we believe that it will enable investors to make more
informed decisions based on our performance.
The book, The Value Reporting Revolution : Moving Beyond the Earnings Game, authored by Robert Eccles, Robert Herz, Mary Keegan and David
Phillips, associated to the accounting firm, PricewaterhouseCoopers, (published by John Wiley & Sons, Inc., U.S., ©2001), acknowledged the
need to go beyond GAAP in providing information to shareholders. In their book, Building Public Trust : The Future of Corporate Reporting
(published by John Wiley & Sons, Inc., U.S., ©2002 PricewaterhouseCoopers), our business model and reporting were referred to in detail.
We believe the following ValueReporting™ paradigm applies to us :

The ValueReporting™ paradigm

Better Managed Business

Infosys Infosys
Creation Preservation Realization
Investors Group
• Create sustainable customer • Exercise judicious control • Seek to meet or exceed our
value through our service over expenses to ensure communicated goals
and solution offerings predictability in earnings • Seek to realize shareholder
• Grow responsibly with • De-risk growth to ensure expectations through
industry leading profitability high-quality growth, thereby improved investor
protecting shareholders' value communications

We identified the need to provide a range of non-financial parameters early in our existence – before our Indian public offering in 1993.
To reduce information asymmetry, we make the following disclosures in addition to the mandated Indian and IFRS financial statements and
supplementary data as required by the relevant statutes :
• Brand valuation
• Balance Sheet including intangible assets
• Economic Value-Added (EVA®) statement
• Intangible asset scorecard
• Risk management report
• Human resource accounting and value-added statement

(1)
Refer to the Human Resource valuation for details.

ValueReporting™ | 75
Additional Information Infosys Annual Report 2011-12

The Corporate Reporting™ framework

Market Strategy and Managing

Performance
Overview Structure for value
• Competitive environment • Goals and objectives • Financial assets • Economic
• Regulatory environment • Governance • Physical assets • Operating
• Macro environment • Risk framework • Customers • Environmental,
• Organizational design • People social and ethical

• Innovation • Brands and intellectual • Segmental

assets
• Supply chain
• Society

By adopting similar internal measures to evaluate business performance, our employees are adjudged based on metrics that are additional to the
financials. This balances financial and non-financial performance across all levels of the organization. Accordingly, we seek to align the measures
by which stakeholders measure our performance with what results in employee rewards.
In addition to the Annual Report, a Sustainability Report measuring compliance against the Global Reporting Initiative (GRI) is also being
published since fiscal 2008. We are voluntarily participating in the voluntary filing program of GRI initiated by XBRL International Inc. in 2012.
In fiscal 2005, we adopted and furnished eXtensible Business Reporting Language (XBRL) data to the U.S. Securities and Exchange Commission
(SEC) for the first time. We are the 4th Company worldwide to adopt the XBRL. As the SEC website is under preparation for the acceptance
of IFRS XBRL filings, we have not been furnishing our IFRS filings after March 31, 2009, although we have completed a pilot testing on XBRL
statements in IFRS. We have been invited by the International Accounting Standards Board to conduct pilot testing of the new versions of the
IFRS taxonomy and have tested on the detailed tagging of the IFRS taxonomy.
The book, One Report : Integrated Reporting for a Sustainable Strategy, authored by Robert Eccles and Michael Krzus, (published by John Wiley
& Sons, Inc., U.S., © 2010), analyzes the need to give one integrated report for financial and non-financial measures for providing information
to shareholders. Although we give all the information through multiple reports today, we will strive towards an integrated report in future.
In an endeavor to achieve the same, we have significantly enhanced the involvement of social media network by having a company presence on
FacebookTM and TwitterTM for interacting with a wider and larger part of the stakeholder community. We have also adopted a social media policy
that provides guidelines for participating in social media responsibly without compromising the Company's interest by deliberate or inadvertent
disclosure of company confidential / proprietary information. Further, in an effort to increase the robustness of our non-financial valuations
to a more contemporary model, we have valued our human capital valuation together with the newer dimension on human externality valuation
using a new model. The model assumptions and parameters have been discussed in detail in the Human resource valuation section.
In the coming years, we will continue our commitment to furnish additional qualitative information to help our shareholders understand better,
the management of our business.

76 | ValueReporting™
 Infosys Annual Report 2011-12 Additional Information
Management structure
Management structure | 77
Additional Information Infosys Annual Report 2011-12

Infosys Science Foundation

Instituted in 2009, the Infosys Science Foundation (ISF) is a Prof. Kaushik Basu, C. Marks Professor of International Studies and
not-for-profit trust to promote research in the sciences, mainly in Professor of Economics at Cornell University and Economic Advisor to
India. The ISF has two flagship initiatives – the Infosys Prize and the the Government of India, was chosen to chair the Social Sciences prize
more recently established Infosys Science Foundation Lecture Series. category since Prof. Amartya Sen would be chairing the Humanities
The Infosys Science Foundation focuses mainly on the governance and category.
running of the Infosys Prize – an annual award to honor outstanding In September 2011, the ISF also instituted the Infosys Science
achievements of contemporary researchers and scientists across Foundation Lectures. This public lecture series is open to all and
five categories : Engineering and Computer Sciences, Life Sciences, hopes to engage scientifically inclined members of the public,
Mathematical Sciences, Physical Sciences and Social Sciences, students and researchers who want to know more about the
each carrying a prize comprises a gold medal, a citation and a particular field that the lecture discusses. The ISF held eight lectures
purse of ` 50 Lakh. in all until March 2012, delivered by winners and jurors of the
Nominations are evaluated by an eminent jury in each area, comprising Infosys Prize. The lecture recordings are available at our website :
outstanding international personalities including Nobel laureates. www.infosys-science-foundation.com.
The Infosys Prize 2011 were given to : The following lectures were held in 2011-2012 :
Prof. Kalyanmoy Deb (Engineering and Computer Science) – for his Prof. Michael Sandel – Anne T. and Robert M. Bass Professor of
contributions to the emerging field of Evolutionary Multi-objective Government at Harvard University and Juror for Infosys Prize in Social
Optimization that has led to advances in non-linear constraints, Sciences, 2011
decision uncertainty, programming and numerical methods,
• Justice : What's the right thing to do?
computational efficiency of large-scale problems and optimization
Infosys Campus, Bangalore, March 12, 2012
algorithms.
• What's Fair? : Equality, affirmative action, and meritocracy
Dr. Imran Siddiqi (Life Sciences) – for his contributions to the basic NIMHANS Convention Centre, Bangalore, March 12, 2012
understanding of clonal seed formation in plants which can be applied
to revolutionize agriculture, especially in the developing world. • Justice : Equality, inequality, and the good society
Nehru Centre, Mumbai, March 13, 2012
Prof. Kannan Soundararajan (Mathematical Sciences) – for his work
in analytic number theory and development of new techniques to • What Money Can't Buy : The moral limits of markets
study critical values of general zeta functions to prove the Quantum India International Centre, Delhi, March 14, 2012
Unique Ergodicity Conjecture for classical holomorphic forms.
Prof. Shrinivas Kulkarni – Director, Caltech Optical Observatories and
Prof. Sriram Ramaswamy (Physical Sciences) – for his pioneering Jury Chair for Infosys Prize in Physical Sciences, 2009 – till date
work in the field of active matter that enables a detailed exploration • The Restless Universe
into several aspects of the collective behavior of living systems IISc, Bangalore, September 29, 2011
as interacting mechanical entities with distributed input and
dissipation of energy. • Astronomy on the Cusp : A subject driven by progress in technology
Infosys Campus, Bangalore, December 7, 2011
Prof. Raghuram G. Rajan (Social Sciences – Economics) – for his
work in analyzing the contribution of financial development to • Astronomy Lecture
economic growth, as well as the potentially harmful effects of Nehru Centre, Mumbai, January 8, 2012
dysfunctional incentives that lead to excessive risk-taking.
Prof. Ashutosh Sharma – Institute Chair Professor, Chemical Engineering
Dr. Pratap Bhanu Mehta (Social Sciences – Political Science) – for Department; Coordinator of the Nanosciences Center at IIT, Kanpur and
his contribution to political philosophy and social theory, and also winner of the Infosys Prize in Engineering and Computer Science,
for his insightful analysis of India's politics and public policy. 2010

At the prize presentation ceremony in Bangalore on January • Nanotechnology and Nature-inspired Technologies : Some lessons in
9, 2012, Dr. A. P. J. Abdul Kalam, the 11th President of India, scientific common sense and creativity
who was the chief guest, lauded the works of the winners for their Infosys campus, Bangalore, September 22, 2011
potential impact on society. For instance, the winner of the Infosys The Infosys Science Foundation also partly sponsored the 7th
Prize for Life Sciences, Dr. Imran Siddiqi, made breakthrough International Conference on Gravitation and Cosmology organized by the
contributions to the basic understanding of clonal seed formation in Tata Institute of Fundamental Research (TIFR), Mumbai.
plants which can be applied to revolutionize agriculture, especially
Through such activities outlined above, the Infosys Science Foundation
in the developing world. For more details about the winners,
hopes to improve the perception of research as a career, informing and
visit www.infosys-science-foundation.com.
inspiring more people to take up or remain in research. The ISF has
Recently, the trustees of the ISF announced a new prize category in begun showcasing researchers and scientists as role models and heroes
the Humanities. The category will include Archaeology, History, Legal to be honored and emulated. The lectures help spread this message
Studies, Linguistics, Literary Studies and Philosophy. It will be chaired by further and wider.
Prof. Amartya Sen. By expanding the scope of the prize with this cluster
For more details on the Infosys Science Foundation, visit
of subjects, the trustees hope to create an incentive for students and
www.infosys-science-foundation.com.
researchers in this field in a way that already exists for the other sciences.

78 | Infosys Science Foundation

Infosys Annual Report 2011-12 Additional Information

Infosys Foundation
“Thousands of candles can be lit from a single candle, and the life of Healthcare
the candle will not be shortened. Happiness never decreases by being Accessible and affordable healthcare is a necessity for people in
shared.” developing countries like India. The Infosys Foundation regularly
Gautama Buddha supports programs that address this need. In 2011-12, the Foundation
The Infosys Foundation (‘the Foundation’) was set up in 1996 has supported the following initiatives and programs :
with the intention of supporting the underprivileged sections of • The construction of rest houses at the National Institute of Mental
the society and enriching their lives. Promoted by Infosys Limited, Health and Neuro Sciences (NIMHANS), Bangalore
the Foundation started its activities at a modest scale, but has now • Creation of a corpus in several hospitals for treating poor patients. A
spread its work across various parts of India. The Foundation's activities total of 10 hospitals serving the poor have been beneficiaries
range from making healthcare accessible, to spreading education, • Contribution of critical life saving medical equipment such as
sponsoring the arts, and rehabilitating affected communities, ambulances, incubators, neo-natal resuscitation equipment, drugs
especially in the rural and underdeveloped regions of India. and medical facilities have been contributed to various government
The key focus areas of the Foundation are : hospitals and facilities to the tune of ` 50 crore, benefitting thousands
• Education of underprivileged people.
• Arts and culture Rural development
• Healthcare
• Rural development The need for basic infrastructure is the most critical challenge facing
• Welfare of the underprivileged the rural population in India. This becomes especially dire during
times of natural disasters. The Foundation believes that along with
The highlights of some of the projects the Foundation was involved the support from governments, institutional support also has to be
in during 2011-12 are : provided on a need basis. The Foundation has lent a helping hand
Education during natural disasters with food, essential supplies and rebuilding
lives. In the last 15 years, the Foundation has extended its support
The Infosys Foundation supports the cause of primary, secondary and
and aid amounting to over ` 40 crore. In 2011-12, the Foundation
higher education, vocational and professional learning through public
was involved in the following activities :
and private agencies and believes in empowering people to realize
their full potential. Some of the work of the Foundation in this field • Construction of 2,262 houses in Gulbarga, Yadgir, Raichur, Dharwad
during 2011-12 are as follows : and Belgaum districts for people whose homes were damaged
and livelihoods threatened by the devastating flood of 2009.
• Sponsoring the 7th Kannada Vijnana Sammelana and 4th National
The Foundation spent around ` 30 crore on this project.
Women's Congress at Gulbarga University
• Sponsorship of airfare for 20 destitute women in Bahrain
• Offering scholarship programs for meritorious but economically
• Construction of 400 houses for flood victims in Andhra Pradesh
poor students in Karnataka and Hyderabad
• Support for the rehabilitation of 1,000 street children in Delhi
• Awarding scholarships to meritorious final year students of Medical
through Sathi, an NGO
Sciences in Bellary
• Supply of food and clothing for flood victims in Odisha.
• Awarding 585 scholarships to poor and meritorious students
through Prerana, an NGO in Raichur and Bangalore, and Vidya Over the years, the Foundation has empowered over 7,50,000 women in
Poshak in Dharwad and Shri Kottala Basaveshwara Bharateeya three districts in Karnataka by training them in hygiene, health, nutrition,
Shikshana Samithi in Sedam. The Foundation contributed over infant care, livelihood, literacy and sanitation through Jnanavikasa.
` 2 crore in scholarships. Welfare of the underprivileged
• Helping the publication of Manohar Grantha Mala, the unpublished
works of yesteryear writers and aided the archival process The Infosys Foundation continues to promote various causes
• Donating funds to Isha Education towards the construction of six relating to the economically weaker and underprivileged sections of society.
classrooms at the Cuddalore Rural School, Tamil Nadu In 2011-12, the Foundation was involved in the following activities :
• Donating funds for the distribution of notebooks to students • Support for the rehabilitation of 1,000 Devadasis – a marginalized
affected by the floods in Bhubaneswar community of women – who are victims of a degenerative social
Stepping up the Foundation’s involvement in education, we practice. The Foundation also supported the education of 1,240
committed a grant of US $380,000 for the New York City (NYC) children of Devadasi women.
Science Education Initiative of the New York Academy of Sciences • Construction of lavatories with a view to influence a changed
(NYAS). This initiative is aimed at mentoring students of underserved ecosystem for health and hygiene in rural India. This will help
communities in Science, Technology, Engineering and Math (STEM). over 10,000 families in backward districts of Karnataka.
The Foundation also worked with the Wayne County Community • Support for the development of community-focused awareness
College District (WCCCD), to offer our software development training programs in Kerala through Org People Multimedia Communications
program to grow Detroit’s technology talent pool. • Donation to the Swami Vivekananda Seva Trust towards improving
tribal schools run by the government of Karnataka in Chamarajanagar.
Arts and culture • Donation of around 5,000 computers to schools for economically
The wealth of a civilization and its society is defined by its art and culture. weaker sections of society in Bangalore.
There is a clear need for institutional sponsorship for performing arts to Grants by Infosys Limited to the Foundation
survive and flourish. The Infosys Foundation identifies, nurtures and
promotes performing arts through sponsorships. Some of the significant The grants made during the last three years are as follows :
sponsorships for 2011-12 are as follows : Financial Year Grants (in ` crore)
• Music concerts by 12 musicians through the Bharatiya Vidya Bhavan 2012 20
• Theater events and shows by various artists and troupes 2011 –
2010 34

Infosys Foundation | 79
Additional Information Infosys Annual Report 2011-12

Report on health, safety and environment

During the year, Infosys continued to work towards excellence in The per capita (per month) electricity consumption for fiscal 2012
Health, Safety and Environment (HSE). The focus was on strengthening was 202.93 KwH as compared to 296.51 KwH in fiscal 2008 which is
existing systems and seeking ways to introduce new measures in our a 32% reduction from the base year. This was accomplished through
journey of continual improvement. the streamlining of our electricity consumption for air conditioning,
Employees at all levels remained committed to meeting the set goals lighting and the running of desktops. Our goal is to be carbon neutral
and objectives in terms of environment, health and safety management. by fiscal 2018. This year, we have achieved a reduction of 2.2 MW
in the connected load through our Heating, Ventilation, and Air
Ozone Conditioning (HVAC) retrofits.
Ozone, the Infosys Health, Safety and Environmental Management Infrastructure development
System (HSEMS), was established in 2003, to nurture and strengthen
the organization's commitment to protecting the environment, Every new building at Infosys is constructed using integrated
and sharing best practices on creating a safe and healthy workplace. design methods to maximize daylight and minimize heat gain.
The focus of HSEMS is to constantly strive towards: Efficient building envelopes, with insulated walls and roofs and high
performance glass are used to ensure conservation of energy. Currently,
• Conservation of resources we have four ‘Leadership in Energy and Environmental Design (LEED)’
• Reducing of pollution Platinum rated buildings at Jaipur, Thiruvananthapuram, Hyderabad
• Adherence to all applicable legislations and and Mysore, taking the total green built-up area at Infosys to
one million sq. ft.
• Eliminating accidents, occupational illnesses and injuries at work
Some of the most significant HSE initiatives undertaken during the IT infrastructure
year are as follows: Our operations are not energy-intensive. However, significant
measures are taken to reduce the energy consumption by using
Awareness and employee engagement energy-efficient computers and IT equipment. The following are some
We encourage our employees to get actively involved in initiatives to of the significant efforts pursued during the year :
improve society and the environment. Employee-driven eco groups • We included energy efficiency as one of the key parameters in
at our development centers initiated campaigns that inculcate eco- IT architecture and adopted latest technology concepts like
friendly lifestyles. Some of the highlights of our environmental virtualization, consolidation and cloud to reduce the physical
campaigns conducted in 2011-12 by our eco groups are as follows : footprint of servers and other equipment, leading to conservation
• The Earth-Hour week which culminated with the ‘Earth Hour’ of energy.
being observed globally, as organized by the WWF • We deployed optimized desktop power management configuration
• Eco-clubs across all campuses took pledges to reduce water and automated tools designed to force-schedule the shutdown of
consumption for World Water Day, and ran awareness and action desktops. Also, around 7,000 older desktops were replaced this
campaigns to engage employees year with newer power-efficient models.
• Green Connect representatives have been invited to global forums • We virtualized and consolidated servers wherever feasible and have
of high repute such as the United Nations Climate Change deployed tools which automatically check and shutdown idle,
Conference (COP15) at Copenhagen in December 2009, COP16 in project-specific servers. We added capacity to internal enterprise
December 2010, and at Durban in 2011. COP16 is the 16th edition cloud, built to move away from dedicated computing infrastructure
of the Conference of the Parties of the United Nations Framework used for software development and testing purposes.
Convention on Climate Change (COP). • We continued our efforts towards restructuring the existing data
• Papers authored by the Green Connect project team have been centers and server rooms. Around 1,600 sq. ft. server room / lab
accepted for publication in the Infosys Labs Briefings, our thought space has been released. Video and audio conferencing usage has
leadership journal and were invited to be presented at the Infosys increased steadily, therefore indirectly cutting down the travel
Technology Leadership Series workshop. This is a first for papers requirements and hence the carbon footprint.
being published by a voluntary group.
• Switching to reusable envelopes for proof-submissions with the Green power
Infosys Corporate Accounting Group resulted in a reduction of Currently, with a combination of on-site and off-site renewable
nearly 62%. This meant that 70,000 envelopes were procured for sources, which includes wind, solar and hydro, we are using nearly
1,83,607 submissions, compared to a one-on-one procurement 50 million units of green power.
prior to this initiative.
• In association with the Computers and Communications Division, Water
through an effective automatic system shut-down drive Our water sustainability strategy across campuses includes reducing
• Working with public transport authorities such as the Bangalore our consumption; harvesting rainwater and recycling waste water.
Metropolitan Transport Corporation, we were able to mobilize the Our aim is to make our campuses water sustainable. The per capita
introduction of nearly 148 buses in six months, with 1,048 trips (per month) fresh water consumption for fiscal 2012 was 2.47 KL
to and from Electronics City. This has led to an increase in public as compared to 3.28 KL in Fiscal 2008 which amounts to a 25%
commute among our employees. reduction from the base year. The Mysore campus meets about 49%
of its fresh water requirements from ground water sources within
Energy the campus. Over the last several years, we have constructed eight
As with previous years, energy conservation has been one of the main artificial reservoirs in the campus with a total water holding capacity
focus areas this year. We achieve this through design optimization, of almost 40 million liters. We have also constructed six large open
innovation and implementation of newer technology. We have been able wells close to these lakes from which water will be drawn for drinking.
to significantly reduce our energy consumption across all campuses.

80 | Report on health, safety and environment

Infosys Annual Report 2011-12 Additional Information

Because of our conservation efforts, the campus has successfully • HALE Safety Week – More than 38,000 employees participated
reduced its per capita water consumption by 20% in fiscal 2012, which in this safety campaign. The focus was on five safety themes,
has saved about 124 million liters of fresh water during the year. These food, fire, road, personal and holiday safety. Innovative ways
at the Infosys Mysore campus helped Infosys win the Confederation of to propagate the safety message included – floor-walks by the
Indian Industry (CII) Award for Excellence in Water Management and Assistant Commissioner of Police, expert talks, interviews, ‘Safety
an award at the Bangalore World Water Summit 2012. Guru’ contests, street plays, sessions on personal safety for women,
Carbon emissions first aid sessions and mime competitions.
• HALE Health Week – More than 68,000 employees participated
Our goal is to become carbon neutral. We are approaching this across development centers (DC) from January 19-25, 2012.
objective with a target of reducing our per capita energy consumption The focus was on cardiology, ergonomics and fitness, ophthalmology,
by 50% over 2007-2008 levels. We intend to use green power for dermatology and nutrition.
100% of our requirements. Our most important objective is to offset
the emission levels from our business travel and employee commute Campaigns on oral health and heart care, a diabetes camp,
by various alternate approaches. World Osteoporosis Day and World AIDS Day
Online quizzes, InfyTV specials, health checks, offline contests,
Waste management Climb the Stairs campaign, Yoga camps and various other activities
A system of waste segregation at source has been established and organized across DC.
waste is disposed to recyclers / vendors in adherence to legislation While we continue on our journey to become a world-class employer,
wherever applicable. the HALE team is striving to ensure that it does so with employees who
Biodiversity are healthy and are able to balance work and life effectively.
One of our focus areas is to maintain biodiversity at our campuses. Assessments and reviews
We work towards this goal by planting native endangered species at In March 2012, the surveillance audit for ISO 140001 : 2004 standard
some of our campuses. We have planted about 45,914 trees during and OHSAS 18001 : 2007 specifications was held and we were
fiscal 2012. recommended for the continuation of certification at all our India
Health and safety DCs. These certifications are a testament to our consistent pursuit of
excellence in HSE management at Infosys. Periodic reviews and audits
Safety of the HSEMS are conducted for evaluating the HSE performance
Safety is every employee's responsibility and concern. Employees are and the suitability and effectiveness of processes and programs in
expected to report incidents or workplace hazards. An Occupational achieving the objectives and targets set for the year.
Health and Safety (OH&S) committee is set up in each development PHOENIX – The Business Continuity Management System
center. This committee comprises representatives from different (BCMS) at Infosys
employee groups. Its role is to proactively assist the employer in
developing and implementing the best possible OH&S policies, The surveillance audit for BS25999 standard was conducted during
plans and procedures for eliminating or minimizing occupational September 2011 and we were recommended for continuation of the
risks that are inherent in the business. Hazard and risk identification certification across all India DCs. Our Business Continuity program
exercises are carried out and programs / measures for the reduction Management System (BCMS) comprises of the Emergency Response
or mitigation of the same are ensured. Phase, the Business Continuity Phase and the Disaster Recovery Phase.
The business continuity plans exist at account levels, development
Health Assessment and Lifestyle Enrichment (HALE) center level and corporate level with specific organizations.
HALE is a best-in-class initiative aimed at improving organizational Mock drills and exercises are carried out as per schedules and the
productivity through employee health and wellbeing. HALE learning from exercises, incidents and threats are analyzed and
programs span across several development centers. HALE won the appropriate preventive and corrective actions are undertaken.
‘Best HR Initiative’ award along with seven other initiatives from For additional details on HSE programs and our sustainability
different organizations at the NHRD Conference. initiatives, refer to the Sustainability Report available on our website,
Some of the significant programs held during the year include : www.infosys.com.
• Anti-Tobacco Week – More than 8,700 employees participated
across all Development Centers (DC), and 471 employees pledged
to quit smoking.
• HALE Hobby Week – More than 17,000 employees participated
in workshops that covered a gamut of hobby options such as
chocolate-making, creative writing, poetry, Kirigami, hobby quiz,
movie-making, jigsaw puzzle, Bollywood dance, theater, etc.

Report on health, safety and environment | 81

Additional Information Infosys Annual Report 2011-12

Financial statements (unaudited) presented in substantial compliance with GAAP

requirements of various countries and International Financial Reporting Standards
and reports of substantial compliance with the respective corporate governance
standards
Over the past decades, transformations in information technology Corporate governance report – Australia,
have had a major influence on the economic and political relationships
between nations. Thanks to the opening up of financial markets across Canada, France, Germany, Japan and
the globe, investors today have a wide choice of capital markets to invest. United Kingdom
Consequently, the global investor must have access to information about
the performance of any company, in any market that he or she chooses Australia
to invest in. However, differences in language, accounting practices,
ASX Corporate Governance Council – Principles of good
and reporting requirements in various countries render performance
corporate governance and best practices recommendations
reports by many companies rather investor-unfriendly.
The Australian Stock Exchange (ASX) Corporate Governance Council
Today, the strength of a global company lies in its ability to access
(the Council) was formed on August 15, 2002 to develop and deliver
high-quality capital at the lowest cost from a global pool of investors.
an industry-wide, support framework for corporate governance which
Such companies study the needs of global investors and publish financial
could provide a practical guide for listed companies, their investors,
information in a language and form understood by their existing as well
the wider market and the Australian community. The Council published
as prospective investors. In the process, financial statistics may have to
its first edition of Principles of Good Corporate Governance and Best
be restated and financial terminology may need to be translated. Indeed,
Practice Recommendations in March 2003. The Council undertook an
a key issue in international financial analysis is the restatement and
extensive review of the first edition and issued a revised Corporate
translation of financial reports that describe operations conducted in one
Governance Principles and Recommendations (second edition Corporate
environment, but which are the subject of review and analysis in another.
Governance Guidelines) in August 2007. Further, amendments were
The International Financial Reporting Standards (IFRS) have gained made to the second edition in 2010, and were applicable to an
significant momentum across the globe. Many countries have adopted entity's first financial year commencing on or after January 1, 2011,
IFRS and some, including India, are in the process of adopting the though early application was encouraged. The corporate governance
same. The U.S. Securities and Exchange Commission (SEC) permits principles and recommendations of the Council are not mandatory,
foreign private issuers to file financial statements in accordance with but Australian listed entities must disclose those principles that are not
IFRS without any reconciliation with U.S. GAAP. We have fully adopted in compliance and the reasons for non-compliance.
IFRS as issued by the International Accounting Standards Board for our
The Council proposed eight core principles which it believes underlie
filings with SEC, effective March 31, 2009. Audited IFRS statements
good corporate governance. We comply substantially with all
are available in our Annual Report on Form 20-F, filed with the SEC
recommendations made by the Council, except the following :
for the year ended March 31, 2012. The details are also available on
our website www.infosys.com. 1. Recommendation 3.3 and 3.4 – Diversity Policy : The Company is
committed to providing a work environment free of discrimination
Australia, Canada, France, Germany and U.K. have adopted IFRS.
and harassment. The Company is an equal opportunity employer
We are presenting the extracts of the unaudited consolidated financial
and makes employment decisions based on merit and business
statements for these countries presented in substantial compliance with
needs. The Company believes in equal work opportunities for all
IFRS in their respective local currencies. The financial information
employees and does not condone favoritism or the appearance of
presented in Japanese GAAP in this annual report has been translated
favoritism at the workplace. These are included in the Company's
from our audited IFRS financial statements. The information will
code of conduct and ethics. Further, internally the Company has
be included in the Securities Report to be filed with the Ministry
an ‘Infosys Women's Inclusivity Network (IWIN)’ sponsored by
of Finance, Japan. Further, keeping in mind their local regulations
the non-executive chairman. The objective of IWIN is to create
and practices, these countries have formulated their own corporate
a gender sensitive and inclusive work environment, help women
governance standards. We have provided statements on substantial
in their career lifecycles and develop women for managerial and
compliance with these standards in the respective national languages
leadership roles, thereby maintaining gender ratios at all levels in the
of these countries.
organization. The company also discloses the percentage of women
The unaudited consolidated Balance Sheets and Income Statements, employees in the organization in the Additional Information to the
excluding notes to the financial statements, have been presented Annual Report section.
by converting the various financial parameters, reported in our
consolidated Balance Sheets and Income Statements, into the respective 2. Recommendation 5.1 – Ensure compliance with ASX listing rule
currencies of the above countries. disclosure requirements : We are not listed on the Australian
Stock Exchange. However, we have established necessary policies
In addition, appropriate adjustments have been made for differences,
and procedures to ensure that announcements are made in a
if any, in accounting principles, and in formats, between India, these
timely manner, are factual, do not omit any material information
countries and IFRS.
and are expressed in a clear and objective manner that allows
investors to assess the impact of the information when making
investment decisions.

The financial information provided in this section is unaudited. Financial information presented in substantial compliance with the GAAP requirements of countries and IFRS may not meet all
the regulatory requirements to be characterized as financial statements presented in explicit and unreserved compliance with such requirements. The statements on compliance or substantial
compliance with corporate governance standards of various countries may not meet all the relevant regulatory requirements to be characterized as statements of explicit and unreserved
compliance with corporate governance requirements. The financial information provided in this section does not contain sufficient information to allow full understanding of our results or our
state of affairs. In the event of a conflict in interpretation, the ‘Audited Indian GAAP financial statements' section and the ‘Corporate governance report’ section of the Annual Report should
be considered. We caution investors that these reports are provided only as additional information to our global investors. Using such reports for predicting our future, or of any other company,
is risky. We are not responsible for any direct, indirect or consequential losses suffered by any person using these corporate governance reports, financial statements or data.

82 | Multi-country GAAP
Infosys Annual Report 2011-12 Additional Information

3. Recommendation 7.3 – Declaration in relation to the listed entity's Germany

financial statements by Chief Executive Officer (CEO) and Chief
Financial Officer (CFO) provided in accordance with section 295A (Deutscher Coporate Governance Kodex, in der Fassung
of the Corporation Act : We are not listed on the Australian Stock vom 26. Mai 2010)
Exchange and hence this recommendation is not applicable to Der Deutsche Governance Kodex stellt wesentliche Vorschriften zur
the Company. However, our CEO and CFO provide necessary Leitung und Überwachung deutscher börsennotierter Gesellschaften
certifications with respect to the Company's financial statements dar. Der Kodex wurde entwickelt, um das deutsche Coporate
and internal controls. The certification is provided in compliance Governance System transparent und nachvollziehbar zu machen.
with the Indian and U.S. regulatory requirements. Er soll das Vertrauen der interanationalen und nationalen Anleger,
der Kunden, der Mitarbeiter und der Öffentlichkeit in die Leitung
Canada und Überwachung deutscher börsennotierter Gesellschaften fördern.
Corporate governance : A guide to good disclosure, issued by Der Bericht enthält zahlreiche Empfehlungen der Regierungskommission,
the Toronto Stock Exchange. denen unser Unternehmen grundsätzlich folgt. Es gibt jedoch folgende
In December 2003, the Toronto Stock Exchange (TSX) issued guidelines Ausnahmen :
which would help issuers prepare meaningful disclosure that complies 1. Empfehlung 3, 4 und 5 – Das duale System der Unternehmenseinheit
with its requirements. TSX does not require companies to adopt the – Das Unternehmen hat ein einstufiges Führungssystem in welches
practices in the guidelines, but only requires them to explain their sowohl leitende, als auch überwachende Positionen integriert sind.
practices. These guidelines were updated in January 2006. Zurzeit besteht das System aus 15 Vorständen, darunter sind 6
We substantially comply with all the recommendations. geschäftsführend und 9 unabhängig.

France
日本
La gouvernance d'entreprise des sociétés cotées – Avril 2010
日本におけるコーポレート・ガバナンスに関する問題のいく
Les principes de la gouvernance d'entreprises des sociétés cotées tirent つかについては、日本の法令（会社支配の構造や手続につい
leur origine des rapports VIENOT de juillet 1995 et juillet 1999, ては会社法、コーポレート・ガバナンスの状況の開示につい
des rapports BOUTON de septembre 2002, janvier 2007 et octobre ては金融商品取引法および開示に関する内閣府令等）および
2008 sur les recommandations concernant la rémunération des 2009年12月改定の株式会社東京証券取引所の上場会社コーポ
dirigeants des sociétés cotées. Cet ensemble de recommandations レート・ガバナンス原則（同原則の尊重が有価証券上場規程
fut préparé par des groupes de travail de L'Association Française 第445条の2で規定されている。同原則は、http://www.tse.
des Entreprises Privées (AFEP) et le Mouvement des Entreprises de or.jp/rules/cg/principles/index.htmlにて入手可能）が対
France (MEDEF). Cette « consolidation » des travaux menés par des 処している。金融商品取引法、関係内閣府令および上場会社
présidents de grandes sociétés françaises constitue une réponse à la コーポレート・ガバナンス原則は、インフォシス・リミテッ
communication de la Commission Européenne sur la gouvernance ドのような日本における継続開示会社に対して、コーポレー
d'entreprise et le droit des sociétés, qui préconise que chaque Etat ト・ガバナンスの状況（例えば、会社の機関の内容、内部統
membre désigne un code de référence auquel les sociétés devront 制システムの整備の状況、リスク管理体制の整備の状況、役
se conformer ou expliquer en quoi leurs pratiques diffèrent et pour 員報酬の内容、監査報酬の内容、内部監査の組織および手続
quelles raisons. 等）の開示を求めている。当社は、本年次報告書においてこ
Ce rapport avait fait plusieurs recommandations. Notre société se の情報を開示している。
conforme strictement à ces recommandations, à l'exception des points
ci-dessous :
7.1. La représentation des salaries et des salaries actionnaires –
La politique actuelle de la société est d'avoir 15 membres du conseil.
Dans ce conseil, 9 sont des administrateurs indépendants et 6 des
administrateurs cadres. De ces administrateurs cadres, 2 sont des
fondateurs et 4 sont des employés.
14.2.1. Revue des comptes par un comité d'audit – La société a
un comité d'audit qui comprend 4 administrateurs indépendants.
Tous les membres du comité sont des financiers et un membre est
l'expert financier. Le comité se réunit au moins une fois par trimestre
(un jour avant la réunion du conseil d'administration) pour revoir et
examiner les états financiers.
17. Déontologie pour les directeurs – La législation locale des entreprises
ne demande pas que les directeurs détiennent personnellement des
actions de la société. Cependant, la plupart des directeurs, excepté un,
détiennent personnellement des parts de la société.

Multi-country GAAP | 83
Additional Information Infosys Annual Report 2011-12

United Kingdom 4. Code B.4.1 – Induction on joining the Board – All new
non-executive directors inducted into the Board are given an
The U.K. corporate governance code, issued in June 2010, supersedes
orientation. Presentations are made by various executive directors
and replaces the combined code on corporate governance issued in
giving an overview of our operations to familiarize the new non-
June, 2008. It follows a review by the Financial Reporting Council of
executive directors with the operations. The new non-executive
the implementation of the code in 2008 and subsequent consultation
directors are given orientation on our services; group structure
on possible amendments to the code.
and subsidiaries; our constitution; Board procedures and matters
We substantially comply with all recommendations of the combined reserved for the Board, our major risks and risk management
code except for the following : strategies.
1. Code A.4.1 – Appointment of senior independent director – The The Board's policy is to have separate meetings regularly with
Company had a lead independent director between May 2003 independent directors to update them on all business-related issues
and August 2011. This position was primarily created since the and new initiatives. In such meetings, the executive directors and
Board Chair was occupied by one of our founder directors. From other members of the senior management make presentations on
August 2011 onwards, the Company has an Independent Board relevant issues.
Chair. Hence, we no longer require a Lead Independent Director, 5. Code B.6.2 – Evaluation of Board – The Company is not listed on
as the Independent Board Chair is by default the lead independent the London Stock Exchange and is not part of FTSE 350. However,
director. the compensation committee of the Company, along with the CEO,
2. Code B.1.1 – Board balance and independence – The independent reviews the performance of all the executive directors and senior
directors annually affirm their independence as per the definition of management each quarter, on the basis of detailed performance
the Indian and U.S. listing rules. The Board of Directors also annually parameters set for each of the executive directors at the beginning
determine the independence of these directors. The local listing rules of the year. The compensation committee may from time to time,
also prescribe a maximum tenure of nine years for an independent also evaluate the usefulness of such performance parameters,
director to serve on a company's board. The rule was effective January and make necessary amendments. The Board evaluates the
2006. None of our independent directors have served for more than performance of non-executive directors through a peer-evaluation
nine years from the date of the rule becoming effective. process every year.
3. Code B.2.4 – Appointments to the Board – The nominations 6. Code D.1.2 – Remuneration Policy – The Company has a policy
committee of the Board of Directors is responsible for overseeing to allow its executive directors to serve on the boards of two other
the Company's nomination process for the top-level management business entities with the prior consent of the Chairperson of the
positions and to identify, screen and recommend to the Board Board of Directors. Remuneration earned by virtue of such board
individuals qualified to serve as executive directors, non-executive membership is retained by the directors concerned.
directors and independent directors consistent with the criteria 7. Code E.1.1. and E.1.2 – Relations with Shareholders – The
approved by the Board. The nominations committee believes that CEO, CFO, members of the Executive Council and the
sound succession planning of senior leadership is the most important Investor Relations team meet investors on a regular basis
ingredient for creating a robust future for the Company. Therefore, to understand their views and perspectives. The Company
the Committee has adopted a rigorous process to ensure that the also has a practice of conducting analyst meets both in India
Board selects the right candidates for senior leadership positions. and overseas. Views obtained from investors / analysts
The Company does not appoint external search consultants during the course of such meetings are communicated to the
nor openly advertises for the appointment of its Chairman or Board of Directors at the ensuing Board meeting. As a policy,
non-executive directors. we do not differentiate between small and major investors.
Non-executive directors do not meet with large investors as
required under the code.

84 | Multi-country GAAP
Infosys Annual Report 2011-12 Additional Information

Financial information presented in substantial compliance with Australian

Accounting Standards Board (AASB)
Consolidated Balance Sheets (unaudited) as of March 31, Consolidated Statements of Comprehensive Income
Australian dollar (AUD) in million, except share data (unaudited) for the years ended March 31,
2012 2011 Australian dollar (AUD) in million, except share and per share data
ASSETS 2012 2011
Cash and cash equivalents 3,892 3,615 Revenues 6,683 6,405
Available-for-sale financial assets 6 5 Cost of sales 3,935 3,708
Investments in certificates of deposit 65 26 Gross profit 2,748 2,697
Trade receivables 1,112 1,009 Operating expenses
Unbilled revenue 354 270 Selling and marketing expenses 350 352
Derivative financial instruments – 15 Administrative expenses 475 459
Prepayments and other assets 288 199 Operating profit 1,923 1,886
Total current assets 5,717 5,139 Other income, net 379 283
Property, plant and equipment 1,022 1,050 Profit before income tax 2,302 2,169
Intangible assets 221 190 Income tax expense 663 580
Available-for-sale financial assets 2 5 Profit for the year 1,639 1,589
Deferred tax assets 60 82 Other comprehensive income
Income tax assets 196 216 Fair value changes on available-for-
Other non-current assets 31 99 sale financial asset, net of tax effect (2) (2)
Total non-current assets 1,532 1,642 Exchange differences on
Total assets 7,249 6,781 translating foreign operations (726) 76
Liabilities Total other comprehensive income (728) 74
Trade payables 5 10 Total comprehensive income for
Derivative financial instruments 9 – the year 911 1,663
Current tax payable 199 177 Profit attributable to :
Client deposits 3 5 Owners of the Company 1,639 1,589
Unearned revenue 103 112 Non-controlling interest – –
Employee benefits 94 30 Profit for the year 1,639 1,589
Provisions 25 19 Total comprehensive income
Other current liabilities 464 436 attributable to :
Total current liabilities 902 789 Owners of the Company 911 1,663
Deferred tax liabilities 2 – Non – controlling interest – –
Employee benefits – 56 Total comprehensive income for
Other non-current liabilities 21 14 the year 911 1,663
Total non-current liabilities 23 70 Earnings per equity share
Total liabilities 925 859 Basic (AUD) 2.87 2.78
Net assets 6,324 5,922 Diluted (AUD) 2.87 2.78
Equity Weighted average number
Share capital – 600,000,000 equity of shares used in computing
shares authorized, issued and earnings per equity share
outstanding, 571,396,401 and Basic 571,365,494 571,180,050
571,317,959 as at March 31, 2012 Diluted 571,396,142 571,368,358
and March 31, 2011, respectively Notes :
(including share premium) 845 844 1. The functional currency of the Company is the Indian rupee. These financial
Retained earnings 7,780 6,619 statements have been presented by translating revenue and expenditure at an
average rate during the year; assets and liabilities at the year-end rate; and
Other components of equity (2,301) (1,541) accretions to stockholders' equity at an average rate for the year. The difference
Total equity attributable to equity holders arising on translation is shown under other components of equity.
of the Company 6,324 5,922 2. Exchange rates (1 AUD =)
in `
2012 2011
Average rate 50.34 42.95
Period end rate 52.91 46.11

Multi-country GAAP | 85
Additional Information Infosys Annual Report 2011-12

Financial information presented in substantial compliance with

IFRS (International Financial Reporting Standards) – Canada
Consolidated Balance Sheets (unaudited) as of March 31, Consolidated Statements of Comprehensive Income
Canadian Dollars (CAD) in million, except share data (unaudited) for the years ended March 31,
2012 2011 Canadian Dollars (CAD) in million, except share and per share data
ASSETS
2012 2011
Current assets
Revenues 6,951 6,144
Cash and cash equivalents 4,034 3,624
Cost of sales 4,092 3,556
Available-for-sale financial assets 6 5
Gross profit 2,859 2,588
Investments in certificate of deposits 68 26
Operating expenses :
Trade receivables 1,152 1,011
Selling and marketing expenses 364 338
Unbilled revenue 367 271
Administrative expenses 494 440
Derivative financial instruments – 14
Total operating expenses 858 778
Prepayments and other assets 299 200
Operating profit 2,001 1,810
Total current assets 5,926 5,151
Other income, net 395 272
Non-current assets
Profit before income taxes 2,396 2,082
Property, plant and equipment 1,060 1,053
Income tax expense 690 556
Goodwill 194 179
Net profit 1,706 1,526
Intangible assets 34 11
Other comprehensive income
Available-for-sale financial assets 2 5
Fair value changes on available-for-
Deferred income tax assets 62 82 sale financial asset, net of tax effect (2) (2)
Income tax assets 203 217 Exchange differences on translating
Other non-current assets 32 100 foreign operations (755) 73
Total non-current assets 1,587 1,647 Total other comprehensive income (757) 71
Total assets 7,513 6,798 Total comprehensive income 949 1,597
LIABILITIES AND EQUITY Profit attributable to :
Current liabilities Owners of the Company 1,706 1,526
Trade payables 5 10 Non-controlling interest – –
Derivative financial instruments 9 – 1,706 1,526
Current income tax liabilities 206 177 Total comprehensive income
Client deposits 3 5 attributable to :
Unearned revenue 107 112 Owners of the Company 949 1,597
Employee benefit obligations 98 30 Non-controlling interest – –
Provisions 26 19 949 1,597
Other current liabilities 480 438 Earnings per equity share
Total current liabilities 934 791 Basic (CAD) 2.99 2.67
Non-current liabilities Diluted (CAD) 2.99 2.67
Deferred income tax liabilities 2 – Weighted average equity shares used
Employee benefit obligations – 56 in computing earnings per equity
Other non-current liabilities 22 14 share
Total liabilities 25 70 Basic 571,365,494 571,180,050
Equity Diluted 571,396,142 571,368,358
Share capital – ` 5/- par value Notes:
600,000,000 equity shares authorized, 1. The functional currency of the Company is the Indian rupee. These financial
issued and outstanding, 571,396,401 statements have been presented by translating revenue and expenditure at an
and 571,317,959 as of March 31, 2012 average rate during the year, current assets, current liabilities, property, plant and
equipment, long-term borrowings at the year-end rate, and accretions to stockholders'
and March 31, 2011, respectively 73 73 equity at an average rate for the year. The difference arising on translation is shown
Share premium 617 616 under other components of equity.
Retained earnings 5,945 4,738 2. Exchange rates (1 CAD=)
Other components of equity (80) 510 in `
Total equity attributable to equity holders 2012 2011
of the Company 6,555 5,937 Average rate 48.40 44.78
Total liabilities and equity 7,513 6,798 Period end rate 51.04 45.99

86 | Multi-country GAAP
Infosys Annual Report 2011-12 Additional Information

Etats financiers préparés en conformité avec les normes

IFRS (International Financial Reporting Standards) – France
Bilan consolidé (non-audité) au 31 mars Compte de résultat consolidé des éléments latents
en millions d'euros, sauf résultat par action (non-audité) pour les années finissant au 31 mars
2012 2011 en millions d'euros, sauf résultat par action
ACTIF 2012 2011
Actif circulant Produits 5,076 4,574
Disponibilités 3,034 2,630 Coût des ventes 2,988 2,648
Valeurs mobilières de placement 4 4 Résultat brut 2,088 1,926
Certificats de dépôt 51 19 Charges d'exploitation :
Clients 867 734 Coût des ventes et de marketing 266 251
Facture à établir 276 196 Charges administratives 361 328
Instruments financiers dérivés – 11 Total des charges d'exploitation 627 579
Charges constatées d'avance et autres Résultat d'exploitation 1,461 1,347
actifs circulants 225 145 Autres produits, net 288 202
Total actif circulant 4,457 3,739 Résultat avant impôt 1,749 1,549
Actif non-circulant Impôt sur les benefices 504 414
Installations techniques, matériels et Résultat net 1,245 1,135
outillages industriels 797 764 Autre résultat – Eléments latents
Fonds de commerce 146 130 Gain latent sur les immobilisations
Immobilisations incorporelles 25 8 financières disponibles, net de
Immobilisations financières disponibles 1 4 l'impact de l'impôt (1) (2)
Impôt différé actif 46 60 Différence de change (552) 55
Impôt sur les sociétés actif 153 157 Total autre résultat – Eléments
Autre actif non-circulant 24 72 latents (553) 53
Total actif non-circulant 1,192 1,195 Total résultat élément latent 692 1,188
Total actif 5,649 4,934 Résultat attribué à :
PASSIF ET CAPITAUX PROPRES Part du groupe 1,245 1,135
Passif circulant Intérêts minoritaires – –
Fournisseurs 4 7 1,245 1,135
Instruments financiers dérivés 7 – Total résultat élément latent attribué à:
Impôt sur les sociétés passif 155 129 Part du groupe 692 1,188
Acompte clients 2 4 Intérêts minoritaires – –
Produits constatés d'avance 80 82 692 1,188
Avantage des salariés obligatoires 73 22 Résultat par action
Provisions 19 14 Base (euros) 2.18 1.99
Autres passif circulant 361 317 Dilué (euros) 2.18 1.99
Total passif circulant 701 575 Nombre moyen pondéré d'actions
Passif non-circulant Base 571,365,494 571,180,050
Impôt différé passif 1 – Dilué 571,396,142 571,368,358
Avantage des salariés obligatoires – 41 Notes:
Autre passif non-circulant 16 10 1. La devise fonctionnelle de la société est la roupie indienne. Ces états financiers ont
Total passif 718 626 été présentés en convertissant les produits et les charges avec un taux moyen pondéré
pendant l'année ; l'actif circulant, le passif circulant, les installations techniques, les
Capitaux propres matériels et outillages industriels, les emprunts à long terme, avec un taux à la fin de
Capital – 5/- par valeur 600,000,000 l'année; et toutes les augmentations des capitaux propres, avec un taux moyen pour
actions autorisées, émises et comprises, l'année. La différence obtenue avec la conversion est comptabilisée dans les autres
571,396, 401 et 571,317,959 au capitaux propres.
31 mars 2012 et au 31 mars 2011, 2. Taux de change (1 EURO =)
respectivement 48 48 en `
Prime d'émission 522 521 2012 2011
Report à nouveau 5,442 4,560 Taux moyen 66.28 60.14
Autres capitaux propres (1,081) (821) Taux à la fin de l'année 67.87 63.38
Total des capitaux propres attribué à la
part groupe 4,931 4,308
Total passif et capitaux propres 5,649 4,934

Multi-country GAAP | 87
Additional Information Infosys Annual Report 2011-12

Finanzielle Information, dargestellt in wesentlicher Übereinstimmung mit den

IFRS (International Financial Reporting Standards) – Deutschland
Konsolidierte Bilanzen (ungeprüft) zum 31. März Konsolidierte Gesamtergebnisrechnung (ungeprüft) für
EUR in Millionen, außer Angaben zu Aktien die Jahre endend zum 31. März
2012 2011 EUR in Millionen, außer Angaben zu Aktien
VERMÖGENSWERTE 2012 2011
Kurzfristige Vermögenswerte Umsatzerlöse 5.076 4.574
Zahlungsmittel und Herstellungskosten 2.988 2.648
Zahlungsmitteläquivalente 3.034 2.630 Bruttoergebnis vom Umsatz 2.088 1.926
Zur Veräußerung verfügbare finanzielle Betriebliche Aufwendungen :
Vermögenswerte 4 4 Vertriebs- und
Festverzinsliche Wertpapiere 51 19 Marketingaufwendungen 266 251
Verwaltungskosten 361 328
Forderungen aus Lieferung und Summe betrieblicher Aufwendungen 627 579
Leistung 867 734 Betriebsergebnis 1.461 1.347
Geleistete Anzahlungen 276 196 Sonstige Erträge Netto 288 202
Derivate – 11 Gewinne vor Ertragsteuern 1.749 1.549
Anzahlungen und sonstige Ertragsteueraufwand 504 414
Vermögenswerte 225 145 Jahresüberschuss 1.245 1.135
Summe kurzfristiger Vermögenswerte 4.457 3.739 Sonstiges Ergebnis
Langfristige Vermögenswerte Änderungen des beizulegenden
Sachanlagen 797 764 Zeitwerts der zur Veräußerung
Geschäfts- oder Firmenwert 146 130 verfügbaren finanziellen
Immaterielle Vermögenswerte 25 8 Vermögenswerte, bereinigt um
Steuereffekte (1) (2)
Zur Veräußerung verfügbare finanzielle
Wechselkursdifferenz aus der
Vermögenswerte 1 4
Umrechnung von Transaktionen
Latente Steueransprüche 46 60
fremder Währung (552) (55)
Steueransprüche (Ertragsteuern) 153 157 Summe sonstiges Ergebnis (553) (53)
Sonstige langfristige Vermögenswerte 24 72 Summe Ergebnis 692 1.188
Summe langfristiger Vermögenswerte 1.192 1.195 Gewinn, zuzurechnen den:
Summe Vermögenswerte 5.649 4.934 Anteilseignern des Unternehmens 1.245 1.135
SCHULDEN UND EIGENKAPITAL Minderheitsbeteiligten – –
Kurzfristige Schulen 1.245 1.135
Verbindlichkeiten aus Lieferung und Summe Ergebnis, zuzurechnen den:
Anteilseignern des Unternehmens 692 1.188
Leistungen 4 7
Minderheitsbeteiligten – –
Derivate 7 – 692 1.188
Steuerschulden (Ertragsteuern) 155 129 Ergebnis pro Aktie
Kundenzahlungen 2 4 Einfach (Euro) 2,18 1,99
Erhaltene Anzahlungen 80 82 Verwässert (Euro) 2,18 1,99
Verpflichtungen aus Leistungen an Gewichtete Durchschnittliche
Arbeitnehmer 73 22 Anteilsaktien, aus denen sich das
Rückstellungen 19 14 Ergebnis pro Aktie errechnet
Sonstige kurzfristige Schulden 361 317 Einfach 571.365.494 571.180.050
Summe kurzfristige Schulden 701 575 Verwässert 571.396.142 571.368.358
Langfristige Schulden Anmerkung:
1. Die funktionale Währung des Unternehmens ist die Indische Rupie. Diese
Latente Steuerschulden 1 – Jahresabschlüsse werden durch die Umrechnung von Erträgen und Aufwendungen
Verpflichtungen aus Leistungen an unter Zugrundelegung eines jahresdurchschnittlichen Wechselkurses erstellt;
Arbeitnehmer – 41 kurzfristige Vermögenswerte, kurzfristige Schulden, Sachanlagen und langfristige
Sonstige langfristige Schulden 16 10 Anleihen wurden mit dem Jahresendkurs umgerechnet; Zuwächse im Eigenkapital
wurden mit dem Jahresdurchschnittskurs umgerechnet. Die Unterschiede aus der
Summe Schulden 718 626 Umrechnung sind in den sonstigen Teilen des Eigenkapitals enthalten.
Eigenkapital 2. Wechselkurs (1 EURO=)
Gezeichnetes Kapital – ` 5/-Nennwert in `
600.000.000 genehmigte
2012 2011
Stammaktien, ausgegeben und
Durchschnittskurs 66,28 60,14
ausstehend 571.396.401 und
Periodenkurs 67,87 63,38
57.317.959 zum 31. März 2012 und
31. März 2011 entsprechend 48 48
Kapitalrücklagen 522 521
Bilanzgewinn 5.442 4.560
Sonstige Teile des Eigenkapitals (1.081) (821)
Summe Eigenkapital, den Anteilseignern
des Unternehmens zurechenbar 4.931 4.308
Summe Schulden und Eigenkapital 5.649 4.934

88 | Multi-country GAAP
Infosys Annual Report 2011-12 Additional Information

Financial information presented in substantial compliance with

IFRS (International Financial Reporting Standards) – Japan
インフォシス・リミテッドおよび子会社 インフォシス・リミテッドおよび子会社
連結貸借対照表 3月31日現在 連結包括利益計算書 3月31日終了年度
（単位：百万円（１株当たりデータを除く。）） （単位：百万円（株式数および１株当たりデータを除く。））
2012年 2011年 2011年 2010年
3月31日 3月31日 収益 574,837 496,510
現在 現在 売上原価 338,458 287,418
資産 売上総利益 236,378 209,091
流動資産 営業費用：
現金および現金同等物 332,623 307,144 販売費およびマーケティング
売却可能金融資産 493 411 費 30,082 27,287
譲渡性預金証書投資 5,589 2,219 一般管理費 40,848 35,588
売上債権 95,012 85,724 営業費用合計 70,930 62,875
未収収益 30,246 22,931 営業利益 165,448 146,216
デリバティブ金融商品 – 1,233 その他の収益純額 32,629 21,945
前払費用およびその他流動資産 24,657 16,931 税引前利益 198,078 168,161
流動資産合計 488,620 436,593 法人税費用 57,040 44,958
非流動資産 当期純利益 141,038 123,203
有形固定資産 87,368 89,258 その他包括利益
のれん 16,027 15,205 売却可能金融資産の公正価値
無形固定資産 2,794 904 の変動（税効果後）（注2.2
売却可能金融資産 164 411 および2.5参照） (164) (164)
繰延税金資産 5,096 6,986 海外業務の為替換算差損益 (62,464) 5,918
法人税資産 16,767 18,328 その他包括利益合計 (62,629) 5,753
その他非流動資産 2,630 8,466 包括利益合計 78,409 128,956
非流動資産合計 130,846 139,559 以下に帰属する当期純利益：
資産合計 619,466 576,152 当社株主 141,038 123,203
負債および資本 非支配持分 – –
流動負債 141,038 123,203
デリバティブ金融商品 740 – 以下に帰属する包括利益合
仕入債務 411 822 計：
未払法人税 17,013 15,041 当社株主 78,409 128,956
顧客預り金 247 411 非支配持分 – –
繰延収益 8,794 9,534 78,409 128,956
従業員給付債務 8,055 2,548 1株当たり当期純利益
引当金 2,137 1,644 基本的（単位：円） 247 215
その他流動負債 39,616 37,068 希薄化後（単位：円） 247 215
流動負債合計 77,012 67,067 1株当たり当期純利益の算定
非流動負債 に使用した加重平均発行済株
繰延税金負債 164 – 式数
従業員給付債務 – 4,767 基本的 571,365,494 571,180,050
その他非流動負債 1,808 1,151 希薄化後 571,396,142 571,368,358
負債合計 78,985 72,985 注： 上記財務情報中の円金額は、2012年3月30日に株式会社三菱東京
資本 UFJ銀行が建値した対顧客電信直物売買相場の仲値である１米ドル
＝82.19円により米ドル金額から円金額に換算されている。
普通株式 1株の額面金額 13円
授権株式数 600,000,000株
発行済株式数
2012年3月31日現在571,396,401株
2011年3月31日現在571,317,959株
（それぞれ金庫株2,833,600株を除
く。） 5,260 5,260
資本剰余金 57,780 57,697
利益剰余金 534,975 435,114
その他の資本の構成要素 (57,533) 5,096
当社株主帰属資本合計 540,481 503,167
非支配持分 – –
資本合計 540,481 503,167
負債および資本合計 619,466 576,152
契約債務および偶発債務

Multi-country GAAP | 89
Additional Information Infosys Annual Report 2011-12

Financial information presented in substantial compliance with

IFRS (International Financial Reporting Standards) – United Kingdom
Consolidated Balance Sheets (unaudited) as of March 31, Consolidated Statements of Comprehensive Income
(unaudited) for the years ended March 31,
U.K. Pound Sterling (GBP) in millions, except share data U.K. Pound Sterling (GBP) in millions, except share and per share data
2012 2011 2012 2011
ASSETS Revenues 4,381 3,887
Current assets Cost of sales 2,579 2,250
Cash and cash equivalents 2,528 2,321 Gross profit 1,802 1,637
Available-for-sale financial assets 4 3 Operating expenses :
Investment in certificates of deposit 42 17 Selling and marketing expenses 229 214
Trade receivables 722 648 Administrative expenses 311 279
Unbilled revenue 230 173 Total operating expenses 540 493
Derivative financial instruments – 9 Operating profit 1,262 1,144
Prepayments and other assets 187 128 Other income, net 249 172
Total current assets 3,713 3,299 Profit before income taxes 1,511 1,316
Non-current assets Income tax expense 435 352
Property, plant and equipment 664 675 Net profit 1,076 964
Goodwill 122 115 Other comprehensive income
Intangible assets 21 7 Fair value changes on available-
Available-for-sale financial assets 1 3 for-sale financial asset, net of tax
Deferred income tax assets 39 53 effect (1) (1)
Income tax assets 127 139 Exchange differences on
Other non-current assets 20 63 translating foreign operations (476) 46
Total non-current assets 994 1,055 Total other comprehensive
Total assets 4,707 4,354 income (477) 45
LIABILITIES AND EQUITY Total comprehensive income 599 1,009
Current liabilities Profit attributable to :
Trade payables 3 6 Owners of the Company 1,076 964
Derivative financial instruments 6 – Non-controlling interest – –
Current income tax liabilities 129 114 1,076 964
Client deposits 2 3 Total comprehensive income
Unearned revenue 67 72 attributable to :
Employee benefit obligations 61 19 Owners of the Company 599 1,009
Provisions 16 12 Non-controlling interest – –
Other current liabilities 301 280 599 1,009
Total current liabilities 585 506 Earnings per equity share
Non-current liabilities Basic (GBP) 1.88 1.69
Deferred income tax liabilities 1 – Diluted (GBP) 1.88 1.69
Employee benefit obligations – 36 Weighted average equity shares
Other non-current liabilities 14 9 used in computing earnings per
Total liabilities 600 551 equity share
Equity Basic 571,365,494 571,180,050
Share capital – ` 5/- par value Diluted 571,396,142 571,368,358
600,000,000 equity shares authorized, Notes:
issued and outstanding 571,396,401 1. The functional currency of the Company is the Indian rupee. These financial
and 571,317,959 as of March 31, 2012 statements have been presented by translating revenue and expenditure at an
average rate during the year, current assets, current liabilities, property, plant and
and March 31, 2011, respectively 33 33
equipment, long-term borrowings at the year-end rate, and accretions to stockholders'
Share premium 464 464 equity at an average rate for the year. The difference arising on translation is shown
Retained earnings 4,771 4,010 under other components of equity.
Other components of equity (1,161) (704) 2. Exchange rates (1 GBP=)
Total equity attributable to equity holders in `
of the Company 4,107 3,803 2012 2011
Total liabilities and equity 4,707 4,354 Average rate 76.79 70.77
Period end rate 81.46 71.80

90 | Multi-country GAAP
Infosys Annual Report 2011-12 Additional Information

Extract of audited IFRS financial statements

Financial statements included in our annual filing with U.S. Securities US Dollars (USD) in millions, except share data
and Exchange Commission (SEC) in the Form 20-F have been prepared 2012 2011
in compliance with the International Financial Reporting Standards Total equity attributable to equity holders
(IFRS) as issued by the International Accounting Standards (IAS) Board. of the Company 6,576 6,122
As in the previous year, we will be availing NASDAQ's rule amendment Non-controlling interests – –
which allows a company to furnish its annual reports to its ADS Total equity 6,576 6,122
holders on its website in lieu of physical distribution. Accordingly, Total liabilities and equity $7,537 $7,010
the Annual Report and the filing with the SEC in the Form 20-F is Commitments and contingent liabilities
available on our website www.infosys.com. However, a physical copy
will be made available to shareholders on request. Consolidated Statements of Comprehensive Income for
The extract of the audited Balance Sheet and Statement of the years ended March 31,
Comprehensive Income as per IFRS is provided hereunder : US Dollars (USD) in millions, except share and per share data
2012 2011
Consolidated Balance Sheet as of March 31, Revenues $6,994 $6,041
US Dollars (USD) in millions, except share data Cost of sales 4,118 3,497
2012 2011 Gross profit 2,876 2,544
ASSETS Operating expenses :
Current assets Selling and marketing expenses 366 332
Cash and cash equivalents $4,047 $3,737 Administrative expenses 497 433
Available-for-sale financial assets 6 5 Total operating expenses 863 765
Investment in certificates of deposit 68 27 Operating profit 2,013 1,779
Trade receivables 1,156 1,043 Other income, net 397 267
Unbilled revenue 368 279 Profit before income taxes 2,410 2,046
Derivative financial instruments – 15 Income tax expense 694 547
Prepayments and other current assets 300 206 Net profit $1,716 $1,499
Total current assets 5,945 5,312 Other comprehensive income
Non-current assets Fair value changes on available-for-
Property, plant and equipment 1,063 1,086 sale financial asset, net of tax effect (2) (2)
Goodwill 195 185 Exchange differences on translating
Intangible assets 34 11 foreign operations (760) 72
Available-for-sale financial assets 2 5 Total other comprehensive income (762) $70
Deferred income tax assets 62 85 Total comprehensive income $954 $1,569
Income tax assets 204 223 Profit attributable to :
Other non-current assets 32 103 Owners of the Company $1,716 $1,499
Total non-current assets 1,592 1,698 Non-controlling interest – –
Total assets $7,537 $7,010 $1,716 $1,499
LIABILITIES AND EQUITY Total comprehensive income
Current liabilities attributable to :
Derivative financial instruments $9 – Owners of the Company $954 $1,569
Trade payables 5 10 Non-controlling interest – –
Current income tax liabilities 207 183 $954 $1,569
Client deposits 3 5 Earnings per equity share
Unearned revenue 107 116 Basic ($) 3.00 2.62
Employee benefit obligations 98 31 Diluted ($) 3.00 2.62
Provisions 26 20 Weighted average equity shares used
Other current liabilities 482 451 in computing earnings per equity
Total current liabilities 937 816 share
Non-current liabilities Basic 571,365,494 571,180,050
Deferred income tax liabilities 2 – Diluted 571,396,142 571,368,358
Employee benefit obligations – 58 Note:
Other non-current liabilities 22 14 1. The functional currency of the Company is the Indian rupee. These financial
Total liabilities 961 888 statements have been presented by translating revenue and expenditure at an
average rate during the year, current assets, current liabilities, property, plant and
Equity equipment, long-term borrowings at the year-end rate, and accretions to stockholders'
Share capital – ` 5/- ($0.16) par value equity at an average rate for the year. The difference arising on translation is shown
600,000,000 equity shares authorized, under other components of equity.
issued and outstanding 571,396,401 2. Exchange rates (1 US$=)
and 571,317,959, net of 2,833,600 in `
treasury shares each as of March 31, 2012 2011
2012 and March 31, 2011, respectively 64 64 Average rate 48.10 45.54
Share premium 703 702 Period end rate 50.88 44.60
Retained earnings 6,509 5,294
Other components of equity (700) 62

Extract of audited IFRS financial statements | 91

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