Cloud chaos
to clarity
Annual Report 2020-21
Navigating
towards cloud clarity
Are we meeting business needs with agility? Are we
efficient in the way we operate? Are we continuously
unlocking innovation potential for the business?
These are the questions that have led several
enterprises to move to the cloud, over the past decade,
in search of the answers. In the wake of the global
crisis, as our world turned increasingly virtual, the
need to accelerate the journey to the cloud, in order
to digitize, became even more urgent. Slowing down
meant risking the organization’s operational resilience
or worse, being disrupted by a nimbler attacker who is
better prepared for the next normal.
Even as the cloud grows in strategic relevance for
companies, capturing the full extent of its promised
value remains a struggle for many businesses. The
challenge lies in their ability to evolve their cloud
investments from being a technology-funding
mechanism that prioritizes features requested by
the business in the near-term, to becoming critical
enterprise investment that allows the business to add
differentiating capabilities quickly and continuously in
the future. Without this plan and the operating model
to action it, companies will be unable to build their
cloud-powered enterprise that efficiently and securely
meets escalating business and customer expectations
of agility and innovation.
We know that the future of enterprise cloud strategy
will be shaped by three key factors – business agility,
scaled innovation and security of the ecosystem. That’s
why we seek to deliver for organizations the cloud’s
full value potential by driving these three factors
through their end-to-end cloud transformation. We
enable businesses to redesign the enterprise from
the core, and also build new cloud-first capabilities
to create seamless experiences in public, private and
hybrid cloud, across PaaS, SaaS, and IaaS landscapes.
Our thriving cloud community brings enterprises the
ability to rapidly launch new solutions and create
business models to meet changing market needs.
The community is further amplified by the Infosys
partner ecosystem that brings together the hyperscale
cloud providers, enterprise app providers, startups
and several other technology innovators. We keenly
appreciate the need to integrate security by design
into this landscape and ensure the business complies
with the most stringent global, regional and industry
security standards.
The capability to do all this and more comes to us from
Infosys CobaltTM – a powerful set of services, solutions,
and platforms for enterprises to accelerate their cloud
journey. We hope to share glimpses, in this Annual
Report, of how this is acting as a force multiplier of
cloud-powered enterprise transformation for our
clients – navigating them from cloud chaos to clarity.
Infosys Annual Report 2020-21
Navigating towards cloud clarity | 1
Daimler AG: Hybrid cloud infrastructure to shape new
experiences
The future of mobility is tied to safe and superior
vehicles that leverage innovative and green
technologies. Progressive auto manufacturers
are exploring intelligent connectivity of vehicles,
autonomous driving and new mobility concepts that
make emission-free driving possible in the long term.
This means deepening focus on software engineering.
And that in turn makes it necessary to set up agile,
open, scalable and smart hybrid cloud infrastructure.
Daimler AG is one of the world’s most successful
automotive companies. To accelerate their pioneering
automotive engineering, they were keen to deepen
focus on software engineering. With software
becoming modular and IT infrastructure becoming
big, Daimler planned to take three steps at once to
transform their IT infrastructure: consolidation, scaling
and modernization. They knew they needed to think
infrastructure beyond the size of their company.
To realize this aspiration, they needed a robust IT
operating model, fully scalable, on-demand digital IT
infrastructure, and anytime-anywhere workplace. Their
priority was to transform their workplace services,
service desk, data center, networks and SAP Basis.
The automotive and mobility giant has started to work
with Infosys to build a model that ensures robust IT
infrastructure for its plants across regions, supports
consolidation of its data centers, scales its IT operations,
and brings multiple innovations to the fore. Some of
the key deliverables from this partnership include:
• A smart hybrid cloud, leveraging Infosys Cobalt and
leading cloud providers, accelerating the multi-
cloud journey with a focus on open source adoption
• A carbon-neutral solution, by consolidating and
rationalizing data centers across all regions
•
Standardized technology stack by bringing in an
ecosystem of best-of-breed partners
• Creation of a state-of-the-art Zero Trust network
with seamless technology upgrades
• Persona-driven and cognitive, AI-powered,
anytime-anywhere workplace solution that
empowers end-users
The Infosys solution for Daimler aims at smoothly
navigating the company from its current mode of
operation to future mode of operation. This journey
started with monetizing Daimler’s legacy assets
upfront, delivering immediate operational expense
savings upfront and underwriting the capital outlay
needed to fund advances in infrastructure, technology
and cloud transformation without needing additional
spending. The strategy, deploying these tactics, will
seamlessly move Daimler closer to their future mode
of operation with bigger operational expense savings,
while helping them nurture an agile and resilient
innovation infrastructure at scale.
Andrea Hendrickx
Vice President and Country Head –
Infosys Germany
“Software becomes modular and IT infrastructure becomes big. Daimler will take three steps at once to transform
its IT infrastructure: consolidation, scaling and modernization. We need to think infrastructure beyond the size of
our company. With Infosys we found a partner to scale, to innovate and to speed up. Moreover, this is a strategic
partnership for Daimler’s IT capabilities and Infosys’ automotive expertise. Infosys wants to grow with us in the
automotive industry, which gives career opportunities for our employees. With this partnership, Daimler also
strengthens its overall technology investment and partnership strategy.”
Jan Brecht
Chief Information Officer, Daimler and Mercedes-Benz
2 | Section Name
Infosys Annual Report 2020-21
Don’t just lift and shift. Uplift experience. Uplift value. | 3
Infosys Annual Report 2020-21 Vanguard: Advanced digital transformation with
secure cloud adoption
Tectonic shifts are impacting the US$ 8.2 trillion defined
contribution recordkeeping industry and the 110
million retirement savers it serves.* From changing
demographics and rising customer expectations to
regulatory complexity and cybersecurity concerns,
unprecedented business challenges are being
exacerbated by aging, legacy technology. Industry
firms must activate key enabling technologies
and advances enabled by the cloud to alleviate
these complications and deliver experiences that
delight customers. Modern, cloud-native platform
solutions can future-proof the industry – enterprise
after enterprise – with easy integration, enhanced
experiences, insights for users, along with simplified
and optimized AI-driven operations delivered more
securely than ever before. And best of all, these
outcomes can be delivered while also lowering
costs and remaining in compliance with regulatory
obligations.
Vanguard, the largest defined contribution asset
manager in the US and one of the largest defined
contribution recordkeepers, recognized early on the
value of making a bold commitment to embrace
secure and scalable cloud technologies. Their goal
was to nurture a fully cloud-based recordkeeping
platform, enabling greater insights and unprecedented
personalization for their almost five million participants
and 1,500 sponsors while protecting data and systems
from cybersecurity risk.
Vanguard, along with Infosys, began a transformation
journey to deliver advances for sponsors including
AI-enabled analytics capabilities, improved visibility
of participant behavior, and ubiquitous operational
support. For participants, Infosys has accelerated
Vanguard’s effort to deliver state-of-the-art
experiences, including a redesigned participant
website, integrated advice, and intuitive technologies.
Vanguard’s business is slated to benefit from cloud-
oriented digitalization with:
• A future-proof technology stack that will improve
time to market, bringing renewed ability to add
additional capabilities over time
•
Faster, iterative releases to gain market traction and
benefit from early, frequent feedback cycles
• A portfolio of innovative possibilities for business to
drive ongoing differentiation
• An approach that protects data, applications, and
infrastructure from threats
Infosys today leads on day-to-day operations
supporting Vanguard’s DC recordkeeping business,
including software platforms, administration, and
associated processes. Vanguard continues to serve
as a strategic partner to plan sponsors, providing
groundbreaking retirement thought leadership,
industry-leading advice and investment management,
and robust analytics to drive better outcomes for
participants. Participant phone calls are serviced by
both Vanguard and Infosys.
The Vanguard digital journey shows how cloud can
enable secure, radical, and client-centric technology
transformation. It has helped create a new standard for
the industry – improving retirement savings outcomes
for plan participants and sponsors through the use of
secure digital technologies.
*Source: Plansponsor 2020 Recordkeeping Survey, July
15, 2020 (https://www.plansponsor.com/research/2020-
recordkeeping-survey/?pagesec=2#Industry%20
Snapshot)
Martha King
Executive Vice President and
Chief Client Officer, Infosys
“Vanguard recognized there was an unmet need in the industry for an adaptable, technology-driven recordkeeping
platform that put the interests of plan sponsors and their participants front-and-center. Through Vanguard’s
relationship with Infosys, we are building a recordkeeping platform that prioritizes participant outcomes, catalyzes
innovation and evolves synchronously with the ever-changing needs of plan sponsors and their participants.”
Sam Anaokar
Principal – Vanguard’s Institutional Investor Group
4 | Section Name
Infosys Annual Report 2020-21
Secure your distributed enterprise. Data to development. By design. | 5
Infosys Annual Report 2020-21 Reckitt: Intelligence on cloud to power
next-generation outcomes
CPG companies around the world are reinventing their
business fabric to get even more close to their end
consumers. This means new digital experiences, an
agile and dynamic supply chain, deep insights and new
channels of growth. Cloud – with its promise of near-
unlimited data storage and compute – and Artificial
Intelligence (AI) / Machine Learning (ML), with its ability
to continuously sense, learn and automate, are central
to this proposition.
Reckitt is a producer of health, hygiene, and nutrition
products, with operations in more than 60 countries
and its products sold in almost 200 countries. Their
vision is to build a cloud-powered, machine-first,
cognitive IT enterprise that can support their talent
pool in the pursuit of continuous learning, data-driven
strategies for exponential growth along with resilient
adaptation and agile execution. The priorities for their
always-on, always-available IT enterprise were to:
•
Sense and avert disruptions to IT
• Bring ramp-up, ramp-down flexibility and resilience
to operations
In partnership with Infosys, Reckitt has embarked
on a transformation journey that includes the
transformation of their data center footprint, with
considerable automation and migration to a cloud-
first model. With this as the new foundation, Reckitt
is building an autonomous, self-governed and self-
sustaining IT services landscape, amplified with digital
workflows, AI / ML, Robotic Process Automation
(RPA) and chatbots, to help run their IT at a fraction
of its current costs. This helped bring a host of new
capabilities including:
• Distributed telemetry to collect and analyze data
from across digital channels
• Predictive intelligence to recommend continuous
improvements and new offerings with growth
potential
•
True omni-channel experiences
• Multilingual live agent chats (with Azure cognitive
services for language translation) for users
requesting manual assistance
• Bots to automatically assign tasks to the right teams
• Minimize dependency on the manual, language-
for resolution
constrained service desk
• Reduce IT operations effort (and associated costs)
by at least 25%
• Drive data intelligence-powered improvements
in customer satisfaction through proactive needs
fulfillment
As the business looks to sustain the staggering growth
and navigating the next normal, this digital investment
will serve to develop more accurate category and
product projections along with the agility to respond at
the pace of change.
Karmesh Vaswani
Executive Vice President and Segment Head –
CPG, Logistics & Retail, Infosys
“We are very excited to partner with Infosys on this transformation which will establish the next-generation IT at
Reckitt. We are clear that cloud and an unwavering focus on automation will create a foundation that will help our
business imagine and reimagine new growth opportunities in an agile and dynamic manner.”
Mark O’ Brien
Director – Corporate IT, Reckitt
6 | Section Name
Infosys Annual Report 2020-21
Future-proof your business with the right applied AI cloud, right now. | 7
Infosys Annual Report 2020-21 Microsoft Corporation: Delivering data to drive
in-depth support for cloud solutions
The ongoing health crisis has created, for the
technology industry, an upsurge in demand –
especially for digital and cloud solutions. With recovery,
across industries, taking an increasingly digital
turn, this demand is only slated to multiply. For the
hyperscale cloud providers, while this is clearly an
opportunity, it also brings with it the challenges of
fulfilling the sudden sharp spike in already burgeoning
demand without impacting the delivery of customer
support and experience.
Microsoft, the fastest growing amid peers in its
category, has been investing in creating new Azure
Data Centers to fulfill the demand for Azure Core
Cloud Computing, Azure Data Services, Dynamics
365 and Microsoft 365. Microsoft has also recently
announced industry-specific cloud-based solutions
founded on Microsoft Azure, in addition to Microsoft
Power Platform tools and other Microsoft services
to provide industry-specific workflows, standards
and components. Microsoft advancements in Azure
Data products like Azure Data Bricks and Synapse
as Data drives enterprise growth. The last mile, for
them, is about enhancing support experience for their
customers by ensuring solution quality and limiting
business disruptions.
Microsoft Enhanced Support Services group, in
partnership with Infosys, accelerated the journey to
differentiate the Microsoft support experience by
leveraging customer data across 350+ SharePoint
destinations, for:
•
Streamlining contractual agreements
• Automating the service activation process
• Providing a holistic and unified view of customer
health metrics
•
Enabling monitoring rigor
• Automating root cause analysis and improving
support for critical incidents
Microsoft’s outcomes are telling and amply quantified
in metrics ranging from service efficiencies to customer
satisfaction:
• Over 200 premium customers were onboarded with
new programs
• Automation of root cause analysis reducing the
analysis cycle time by over 75% (from four weeks to
one week)
•
•
The highly customizable customer onboarding
portal, supporting service activations, slashed
average onboarding time for a customer by more
than 50% (from 3-6 months to just 42 days)
The overall customer satisfaction index was
significantly positively impacted
Microsoft has found value in the systematic mapping
of diverse customer personas within each client
organization that this framework and program has
enabled. This has mitigated dependence, in many
cases, on buy-side procurement managers as the only
source of customer feedback. Now Microsoft has a
richer source of insights that includes an understanding
of customer-decision influencers and end customers
further down the value chain. Data continues to pave
the path to excellence for Microsoft.
Nimesh Kocheta
Vice President and Senior Manager –
Client Services, Infosys
“Infosys has not only been a great partner successfully and continuously delivering against our defined outcomes,
but as well a great sparring partner, challenging our current way of working! We look forward to continuing and
increasing our strategic partnership supporting our people, customers and organization alike.”
Thomas Steiner
Senior Business Program Manager, Microsoft
8 | Section Name
Infosys Annual Report 2020-21
Build that one data cloud to power your now and next | 9
Infosys Annual Report 2020-21 LivePerson: Riding the cloud for growth acceleration
LivePerson, a global leader in Conversational AI
providing much-needed capability for conversational
engagement, commerce and care for all industry
segments, was experiencing significant business
growth due to increasing digitization from brands and
wanted to leverage cloud to:
• Capture increasing demand for Conversational AI
and enable rapid business growth at scale
•
•
Enable access to rapidly-growing rich feature sets of
cloud systems
Stay consistently in the fast lane to meet the
emerging dynamics of the market
• Disrupt competition through cutting-edge
technologies to propel innovation and additional
business functionality
LivePerson partnered with Infosys for the planned
digital transformation of LivePerson’s core revenue-
generating business platform. Infosys is leveraging
its dynamic Cobalt services to deliver accelerated
transformation at scale, and performance on Cloud.
This transformation will deliver unique platform
capabilities for high resilience and consistent
performance to their global customer base.
Infosys has also established a 360° partnership with
LivePerson to help global brands manage AI-powered
conversations with consumers and employees over
SMS, websites, apps, and the messaging channels they
use every day. The partnership will enable brands to
unlock higher growth by combining Infosys Cobalt – a
set of services, solutions and platforms to accelerate an
enterprise’s journey into the cloud – with LivePerson’s
Conversational Cloud, a complete set of applications
and APIs for creating and managing conversational
experiences. The key areas this strategic partnership
will focus on include:
• Direct-to-consumer conversations on consumers’
preferred messaging channels – including Apple
Business Chat, Google’s Business Messages,
Facebook Messenger, WhatsApp, and brand
websites and apps – for marketing, sales and
fulfillment, and customer service
• New messaging experiences for employees
to support business continuity, HR, finance,
and IT queries, drafting off Infosys’ strength in
transforming these functional areas within large
enterprises
•
The cloud, conversational AI, digital consulting, and
global delivery services to build, run, integrate, and
scale immersive experiences for brands.
With the cloud future-proofing that this will provide,
LivePerson will significantly grow every year in its
ability to deliver on its value proposition: Messaging
solutions trusted by the world’s largest brands.
Anant Adya
Senior Vice President and Group Practice
Engagement Manager, Infosys
“Together with Infosys’ transformational services and cloud capabilities, we can redefine how the world’s major
brands communicate with consumers and engage their employees. Our Conversational Cloud includes a full set of
APIs and integration points that Infosys can help architect and weave throughout a large enterprise’s systems and
processes to generate the maximum sales impact and cost savings from conversational experiences. LivePerson
will benefit from Infosys’ partnership by continuing to scale our Conversational Cloud to meet consumers’ growing
demand for these experiences.”
Rob LoCascio
CEO and Founder, LivePerson
10 | Section Name
Infosys Annual Report 2020-21
Get proven industry cloud blueprints to rev up business growth | 11
Infosys Annual Report 2020-21 Contents
Infosys
Annual Report
2020-21
14
The future of enterprise:
Driven by hybrid work, digital
acceleration and cloud
16
Letter to the Shareholder
18
Sharing an equitable and
sustainable digital future
21
The Infosys Board of Directors
22
The Infosys leadership team
24
Awards and recognition
26
Financial highlights
28
Board’s report
Results of our operations and state of affairs
Business description
Human resources management
Corporate governance
Audit reports and auditors
Corporate social responsibility
Environment Social and Governance
Acknowledgments
40
Annexures to the
Board’s report
Annexure 1:
Statement containing the salient features
of the financial statements of subsidiaries /
associate companies / joint ventures
Annexure 2:
Particulars of contracts / arrangements made
with related parties
Annexure 3:
Particulars of employees
Annexure 4:
Corporate governance compliance certificate
Annexure 5:
Secretarial audit report for the financial year
ended March 31, 2021
Annexure 6:
Annual report on CSR activities
Annexure 7:
Conservation of energy, research and
development, technology absorption, foreign
exchange earnings and outgo
Annexure 8:
Corporate policies
66
Management’s
discussion and
analysis
Industry structure and developments
Opportunities and threats
Financial condition
Results of our operations
Outlook, risks and concerns
Internal control systems and their adequacy
Material developments in human resources
/ industrial relations, including number of
people employed
Other details
95
Corporate
governance report
Our corporate governance philosophy
Board composition
Board of Directors
Board and executive leadership compensation
Board meetings
Board committees
Corporate social responsibility
Risk management report
Shareholder information
147
CEO and CFO
certification
148
Standalone financial
statements
Index
Independent Auditors’ Report
Annexure A to the Independent Auditors’
Report
Annexure B to the Independent Auditors’
Report
Balance Sheet
Statement of Profit and Loss
Statement of Changes in Equity
Statement of Cash Flows
Overview and notes to the financial statements
212
Consolidated
financial statements
Index
Independent Auditors’ Report
Annexure A to the Independent Auditors’
Report
Consolidated Balance Sheet
Consolidated Statement of Profit and Loss
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Overview and notes to the consolidated
financial statements
283
Business
responsibility report
298
Investor contacts
Infosys Annual Report 2020-21Infosys Annual Report 2020-21 The future of enterprise: Driven by hybrid work,
digital acceleration and cloud
Even in the midst of the most tumultuous time that the
world has seen in over a century, we can look at Infosys’
performance for fiscal 2021 with quiet satisfaction.
Infosys has delivered industry-leading growth and is
in pole position for another year of market-leading
performance as we start looking at the post-pandemic,
post-cloud era.
What is it that our company is doing differently that
is enabling us to be a market leader when several
veterans around us struggle?
First and foremost, under our CEO, Salil Parekh, ably
supported by the global senior leadership, Infosys has
transformed into a very client-focused company. Our
stable and motivated leadership is working quietly
and without fuss to ensure Infosys is the partner of
choice for the world’s top companies as they navigate
their next in these uncertain and rapidly changing
times. This has led to unprecedented transformational
large deals.
Second, the company is investing in designing and
developing the right solutions required for accelerating
digital transformation. Be it Infosys CobaltTM for
cloud solutions, modernization without disruption,
big data and analytics, applied AI and automation,
cybersecurity, consumerization of user experience, or
a robust innovation ecosystem – these have struck the
right chord with our clients who are keen to assimilate
new ideas to reinvent themselves and become more
like digital natives.
Third, the reinvention and modernization of Infosys’
own digital infrastructure has prepared the company
well to enable our employees to work from home
seamlessly and be highly productive with digital
tools made available at their fingertips. It has also
brought greater credibility to the transformation we
propose to our clients – as these principles of the Live
Enterprise have emerged and evolved from our own
hard experience.
Finally, investments in our people have ensured that
our employees have access to the latest digital skills
and are embracing agile ways of working. We have
launched the Infosys Expanded Stock Ownership
Program 2019, become more global, diverse, and
deeply engaged with our widely dispersed teams in
more than 50 countries working from their homes. We
have created a strong leadership pipeline to work with
trained and motivated employees who have more than
proven their mettle working through the pandemic.
Beyond business, Infosys has been at the forefront
of the ESG movement and became carbon-neutral
in 2020 – 30 years ahead of the timeline set by the
Paris Agreement.
The proactive action that Infosys has taken, over the
last three and a half years, has decisively enabled
us to set the narrative for the global digital services
and consulting industry. Infosys will continue to
innovate and is well-placed to lead the industry in the
coming years.
Today the world is simultaneously seeing three
major transitions – the pandemic-induced model for
hybrid work which requires new ways to collaborate,
orchestrate and deliver, the technology transformation
driven by cloud, and the digital acceleration of business
models that are changing the way we live, work,
play, and relate to one another over digital channels.
Never before have our clients so overwhelmingly
expressed the need for a voice of clarity in the chaos
and confusion. They are vocal in their ask for a partner
who puts clients’ best interests over their own and for a
thought leader who can navigate them to their future.
Our company is committed to being that partner
for our clients and will work on this promise with
relentless execution.
“The company is
investing in designing
and developing the
right solutions required
for accelerating digital
transformation.”
Nandan M. Nilekani
Chairman
14 | The future of enterprise: Driven by hybrid work, digital acceleration and cloud
Infosys Annual Report 2020-21
Infosys Annual Report 2020-21
The future of enterprise: Driven by hybrid work, digital acceleration and cloud | 15
Letter to the Shareholder
“The capabilities
that we have built
over the past three
years, including
differentiated
offerings like Infosys
CobaltTM, are what
large enterprises are
looking for.”
Salil Parekh
Chief Executive Officer
and Managing Director
Dear Shareholder,
My sincere wishes that each of you is safe and well in
these times.
Over this past year, we were extremely focused to
ensure the safety and wellbeing of our over 250,000
employees. Our efforts have been wide-ranging,
holistic, and global. In India, we have set up vaccination
centers at our campuses, COVID-19 care centers
across several locations, collaborated with hospitals,
ambulance services, providing oxygen supply,
medicines, and support for our employees and their
families. We have expanded our financial commitment
towards COVID-19 relief efforts to ` 200 crore,
supporting the communities around us. As I write this,
we are starting to see a decline in active cases and a
gradual increase in vaccinations in India.
Globally, to support our employees during this
challenging period, we have implemented wellbeing
initiatives that range from expert help for mental
health to prioritizing better work-life balance. We have
virtually engaged with our employees through 900
initiatives, as employees continue to work remotely.
In this current business environment, the Company
delivered exceptional results. Our clients have been
expanding their work with us, especially in the areas
of digital and cloud. The capabilities that we have
built over the past three years, including differentiated
offerings like Infosys CobaltTM, are what large enterprises
are looking for. Our market-leading capabilities in data
and analytics, cybersecurity, AI, automation, and IoT
are enabling us to be a critical partner for our clients.
Our acquisitions in the past year – GuideVision, Blue
Acorn, Kaleidoscope, and Carter Digital – have helped
further strengthen our digital portfolio. We are rapidly
becoming an integral part of the digital and cloud
transformation journeys of our clients.
As a result, we had industry-leading growth in the past
financial year, at 5% in constant currency. Our digital
business grew by 29% and now accounts for 52% of
the overall Company revenues in the fourth quarter. We
had over US$ 14 billion of large deals in the past year,
the highest in our history. We have continued to gain
market share. Our operating margins were at 24.5%, an
16 | Letter to the Shareholder
Infosys Annual Report 2020-21
Infosys Annual Report 2020-21
expansion of three points over the previous year. We
generated approximately US$ 3 billion of free cash flow.
Our earnings per share grew by 17% over the previous
year in rupee terms. We have awarded dividend of
US$ 1.5 billion for the full year and announced a share
buyback of US$ 1.2 billion. Our total shareholder return,
over the past three years, is the highest among our
peer group.
Our leadership team came together as One Infosys
and has been united and focused on ensuring we were
delivering what our clients need. Our cross-functional
teams have brought the best of all our capabilities
together by working in unison, to support and drive
the digital transformation journeys of our clients.
Demonstrating client relevance has become one of our
main differentiators.
We turned carbon-neutral in the past year, thirty years
ahead of the global guidelines. We have enhanced our
ESG commitments by outlining Infosys ESG Vision 2030
to continue our focus on shaping and sharing solutions
that serve businesses and communities.
For me, it is a matter of pride to see the commitment
and dedication that our employees displayed
during this year to serve our clients. I am extremely
grateful to them, our clients, the leadership team, our
Board members, and all our well-wishers, who have
supported us with their trust and guidance through
this most challenging year.
As I look ahead, I am more optimistic than ever of
the enormous opportunity ahead of us. Technology,
especially digital and cloud, continue to be at the
center of change for large enterprises globally. We are
among the best-positioned companies to partner with
these enterprises and help them accelerate their digital
journey to realize their objectives.
Thank you for your support and guidance. Take care
and stay safe.
With warm regards,
Bengaluru
May 16, 2021
Sd/-
Salil Parekh
Chief Executive Officer
and Managing Director
Letter to the Shareholder | 17
Sharing an equitable and
sustainable digital future
Infosys has always put sustainability at the heart of its
business approach. Our ability to fulfill and exceed our
responsibility to our stakeholders today and tomorrow
is a testament to our commitment.
2020 marked a milestone year for the Company. We
turned carbon-neutral, 30 years ahead of the global
targets, fulfilling the vision of our founders towards
sustainable growth. In 2011, Infosys made a voluntary
commitment to the United Nations to become carbon
neutral. We have since then embraced ambitious
goals and meticulous plans not just for environmental
preservation, but also to develop people and serve the
interests of our stakeholders.
We are committed to continuing this journey and
therefore we undertook a review of the progress we
made over the past decade on our sustainability goals
ESG – Governance framework
The Board
ESG Committee
ESG Operations Council
and developed the lens further in a more practical and
comprehensive manner, to broaden our ESG focus and
rank our priorities in order of their importance to our
business and our stakeholders. In October 2020, we
launched our ESG Vision and Ambitions for 2030.
Our focus will be steadfast on battling climate change,
conserving water and managing waste. On the social
front, our emphasis will be on the development of
people, especially around digital skilling, improving
diversity and inclusion, delivering technology for good
and energizing the communities we work in. We will
also redouble efforts to serve the interests of all our
stakeholders, setting the benchmark in corporate
governance, ethics and transparency, data privacy and
information management.
The Board instituted an Environmental, Social and
Governance Committee (ESG Committee), with
effect from April 14, 2021, to discharge its oversight
responsibility on matters related to organization-wide
ESG initiatives, priorities, and leading ESG practices.
Kiran Mazumdar-Shaw, Lead Independent Director of
the Board, is the chairperson of the ESG Committee.
Independent directors Chitra Nayak and Uri Levine are
the members of the committee. The ESG Committee
will meet periodically and guide the Board in
discharging its responsibilities.
“We are pleased to institute this new committee of our Board focused
on accelerating the integration of ESG factors into everything that we
do as a business. As a progressive company balancing financial return
to investors with unwavering focus on being sustainable and socially
responsible, this initiative will help us nurture a well-governed model
to realize the many aspirations on our ESG roadmap.”
Kiran Mazumdar-Shaw
Lead Independent Director and Chairperson, ESG Committee
ESG Vision and Ambitions 2030
Shape and share solutions that serve the development of businesses and communities
Environment
Vision
Serve the preservation of our planet
by shaping and sharing technology
solutions
Social
Vision
Serve the development of people by
shaping a future with meaningful
opportunities for all
Material topics
Material topics
Climate change
Leverage technology to support the transition to a
low-carbon world
Ambitions
• Maintaining carbon neutrality across Scope 1, 2 and
31 emissions every year
• Reducing absolute Scope 1 and 2 greenhouse gas
(GHG) emissions by 75%2
• Reducing absolute Scope 3 GHG emissions by 30%
Engaging clients on climate actions through our
•
solutions
(1) Business travel, employee commute, and transmission and distribution
losses
(2) Corresponds to 75% renewable energy usage
Water
Reduce our water footprint and enhance water
availability in the communities where we operate
Ambitions
• Maintaining 100% wastewater recycling every year
Waste
Reduce, reuse and recycle to minimize waste, including
e-waste
Ambitions
•
Ensuring zero waste to landfill
Enabling digital talent at scale
Facilitate skilling to ensure progress for all
Ambitions
•
Extending digital skills to 10 Mn+ people, including
employees, clients’ workforce, students, teachers
and communities (2025)
Tech for good
Partner with society to harness the power of
technology solutions in their everyday
Ambitions
•
Empowering 80 Mn+ lives via tech for good
programs in e-governance, healthcare and
education (2025)
Diversity and inclusion
Foster diversity and nurture inclusion
Ambitions
• Creating a gender-diverse workforce at Infosys,
with 45% women
Energizing local communities
Enable opportunities for communities locally
Ambitions
• Delivering 33% of work by leveraging flexible /
remote work options
Employee wellness and experience
Ensure fulfilling careers for our employees
Ambitions
•
Facilitating best-in-class employee experience and
being recognized among the best employers in our
key operating regions
18 | Sharing an equitable and sustainable digital future
Sharing an equitable and sustainable digital future | 19
Infosys Annual Report 2020-21Infosys Annual Report 2020-21 Governance
Vision
Serve the interests of all our
stakeholders by leading through
our core values
Material topics
Corporate governance
Be a leader and get benchmarked for world-class
corporate governance
Ambitions
• Bringing interests of all stakeholders to the fore
through our empowered, diverse and inclusive
Board
• Building sustainable and responsible supply chains
Ensuring robust compliance and integrity practices
•
Engaging with stakeholders through various
•
channels and earning trust through transparent
communication
Data privacy
Ensure the safety of stakeholder data
Ambitions
• Adopting leading data privacy standards across
all global operations
Information management
Uphold the digital trust of our stakeholders
Ambitions
• Being recognized as industry leader in our
information security practices
Our commitment to our ESG Vision 2030 is unwavering.
Fiscal 2021 has seen good progress in various goal
areas. Some of these are highlighted here:
Enabling clients on climate change solutions
This year, Infosys successfully completed over 20
projects facilitating the journey of its clients to combat
climate change through business-driven IT solutions
around CCUs, energy storage, next-generation
innovative and sustainable products, renewables,
energy efficiency, brown field modernization &
transformation, clean energy generation & trading,
and transportation electrification. In addition, we have
executed an MoU with British Petroleum for a strategic
collaboration to drive integrated energy offers to
reduce emissions at campuses and in cities.
Tech for good
In the new normal, when everyone has been forced to
operate remotely, cloud and digital native, technology-
led solutions and platforms have enabled businesses
and governments to deal with the new conditions
and be resilient. Our #TechforGood initiative focuses
on making an impact across three key segments
– eGovernance, Healthcare and Education. Large,
country-scale, multi-year, strategic ongoing initiatives
in the areas of e-Governance and education across
India, Australia and the US focus on positively
impacting and enhancing the experience of citizens.
Read more here: https://www.infosys.com/global-
resource/18/tech-good-compendium.pdf
Facilitating best-in-class employee experience
We have amplified the reach and effectiveness of
our wellness initiatives, in response to the disruption
caused by the pandemic, with digital experience
touchpoints and a comprehensive 5C framework of
Connect, Collaborate, Celebrate, Care and Culture.
Infosys’ investment in best-in-class people practices has
received recognitions such as the Top Employers Global
2021 certification in 20 countries across Europe, Middle
East, Asia Pacific, and North America, as well as a Great
Place to Work® certification in India and the US, and
ranking by Fortune among the Best Big Companies to
Work For™ 2021 in the US.
Leading with integrity
Infosys has been recognized as one of the 2021 World’s
Most Ethical Companies by Ethisphere Institute, US.
Infosys is one of only four honorees in the Software
and Services Industry globally and one of only three
honorees in India. Infosys was distinguished for its
undiluted commitment towards integrity and making
value-based decisions. The recognition additionally
spotlighted Infosys in the areas of ethics and
compliance, diversity, governance, and social initiatives.
For detailed information, please read our ESG Vision
2030 and our ESG FY21 Report here:
https://www.infosys.com/about/corporate-
responsibility.html
The Infosys Board of Directors
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and Managing Director
U.B. Pravin Rao
Chief Operating Officer and Whole-time Director
Kiran Mazumdar-Shaw
Lead Independent Director
Michael Gibbs
Independent Director
D. Sundaram
Independent Director
Uri Levine
Independent Director
Bobby Parikh
Additional and Independent Director
Chitra Nayak
Additional and Independent Director
20 | Sharing an equitable and sustainable digital future
The Infosys Board of Directors | 21
Infosys Annual Report 2020-21Infosys Annual Report 2020-21 The Infosys leadership team
Executive Vice Presidents
Salil Parekh
Chief Executive Officer and Managing Director
U.B. Pravin Rao
Chief Operating Officer and Whole-time Director
Nilanjan Roy
Chief Financial Officer
Presidents
Anand Swaminathan
Segment Head –
Communication, Media and
Technology
Anantharaman
Radhakrishnan
Chief Executive Officer &
Managing Director – BPM
Binod R. Hampapur
Global Head – Talent &
Technology Operations
Deepak Padaki
Group Head – Corporate
Strategy, and Chief Risk Officer
Dinesh R.
Head Global Services –
Enterprise Package
Application Services
Inderpreet Sawhney
Group General Counsel and
Chief Compliance Officer
Jasmeet Singh
Segment Head –
Manufacturing
Jayesh Sanghrajka
Deputy Chief Financial Officer
Karmesh Vaswani
Segment Head – CPG,
Logistics & Retail
Koushik R.N.
Group Head – Procurement
& Global Immigration
Ravi Kumar S.
President and Deputy Chief Operating Officer
Mohit Joshi
President
Krishnamurthy Shankar
Group Head – Human Resources
and Infosys Leadership Institute
Martha King
Chief Client Officer
Narsimha Rao M.
Head, Global Services – Cloud,
Infrastructure and Security
Solutions & Independent
Validation Solutions
Richard Lobo
Head, HR – Infosys Limited
Satish H.C.
Head, Global Services –
Data & Analytics
22 | The Infosys leadership team
The Infosys leadership team | 23
Shaji Mathew
Service Offering Head –
Financial Services,
Healthcare, Insurance
& Life Sciences
Srikantan Moorthy
Head – US Operations and
Global Head – Education,
Training and Assessment
Infosys Annual Report 2020-21Infosys Annual Report 2020-21 Awards and recognition
We won many awards and honors, both international and national, in fiscal 2021.
The significant ones among them are as follows:
Business and management
•
Recognized as one of the World’s
Most Ethical Companies in 2021
by Ethisphere Institute in the US
•
Infosys Düsseldorf Innovation
Hub awarded the prestigious
NRW INVEST Award 2020
• Won the 2020 Global Enterprise
Risk Management Award
of Distinction for success in
improving transformation
outcomes, growing revenue,
protecting margins and strategic
decision-making
•
Recognized as the fastest growing
among the top 10 IT services
brands, by Brand Finance, the
world’s leading brand valuation
firm, in its Global 500 2021 report
• Won the German Brand Award
2020 for Excellence in Brand
Strategy and Creation
• Was featured in the ‘Leadership’
category in a study conducted
jointly by BSE, International
Finance Corporation and IiAS,
based on G20 / OECD corporate
governance principles. This makes
it an unbroken run from 2017 for
the Company.
•
•
Featured in the Institutional
Investor 2020 All-Asia
Executive Team Rankings in
the Technology / IT Services &
Software Companies category
Chosen by the IR Society of India,
in collaboration with BSE and
KPMG India, as a winner under the
category, Standout IR, among the
BSE 500 companies
Environmental, Social and Governance (ESG),
and sustainability
•
Ranked 30th (moved up from
94th in 2020) on the Wall Street
Journal’s 2021 List of 100 Most
Sustainably Managed Companies
in the World
• Won the Golden Peacock Global
Award in the Information
Technology sector for Excellence
in Corporate Governance
•
Adjudged the company most
committed to social causes
and among the top three in
environmental stewardship in
India by FinanceAsia
•
Rated by Sustainalytics as an ESG
Industry Top Rated Company
• Won the CII – Climate Action
Programme (CAP 2.00)
‘Resilient’ Award
• Won the Platinum Award at the
Asset ESG Corporate Awards 2020,
the longest running ESG awards
in Asia
•
•
•
•
•
•
•
•
•
•
•
Human resources
Awarded Fortune Best Big
Companies to Work For™ 2021
in the US
Awarded Top Employers Global
2021 certification in 20 countries
across Europe, Middle East, Asia
Pacific, and North America. Also
top ranked in 15 countries and
No. 1 in India, APAC, and Middle
East Region, and among the top
two employers in the US and
Australia
Certified by the Great Place to
Work® Institute as a Great Place
to Work® in India, for the period
March 2021 to February 2022
• Won the Glassdoor Employees’
Choice Award, a recognition as
one of the Best Places to Work in
2021 in Canada
• Won the Champion of Inclusion
award of Working Mother &
Avtar Most Inclusive Companies
Index 2020
•
•
Infosys InStep ranked No. 1 in the
‘Best Overall Internship Program’
category for three years in a row
Infosys USA certified as a Great
Place to Work in the US in
May 2020
• Won the 2020 BEST Awards
by The Association for Talent
Development, US
• Won the Top 10 Working Mother &
Avtar Best Company for Women in
India award 2020
•
Recognized as a Disability
Confident Recruiter
by the Australian Network on
Disability
• Was the 1st Runner up for
Excellence in Diversity & Inclusion
at the SHRM HR Excellence Awards
•
Scored 95 out of 100 on the
Human Rights Campaign
Corporate Equality Index for
LGBTQI+ Inclusion
Digital services and technology innovation
Infosys Finacle
•
•
•
Positioned as a Leader in Forrester
Wave™: Digital Banking Processing
Platforms (Corporate Banking), Q3
2020 report
Positioned as a Leader in Forrester
Wave™: Digital Banking Processing
Platforms (Retail Banking), Q3
2020 report
Awarded Best Use of IT in
Corporate Banking with Bank of
the West BNP Paribas
• Won the award for Most Impactful
Project in the use of Blockchain in
Banking: Infosys Finacle and Royal
Bank of Scotland
Positioned as a leader in
Gartner Magic Quadrant for Data
and Analytics Service Providers
Ranked as a leader in
Gartner Magic Quadrant for IT
Services for Communications
Service Providers, Worldwide
Ranked as a leader in
Gartner Magic Quadrant for
Application Testing Services,
Worldwide
Positioned as a leader in
Forrester Wave™: Digital Process
Automation Service Providers
Ranked as a leader in
Forrester Wave™:
Multicloud Managed Services
Providers, Q4 2020
Ranked as a leader in
HFS Top 10: Hyperscaler Cloud
Service Providers 2021
Ranked No. 1 in
HFS Top 10: Agile Software
Development, 2020
Ranked as a leader in
HFS Research Top 10 Healthcare
Sector Service Providers
•
•
•
•
•
Positioned as a leader in
IDC MarketScape Worldwide
Oracle Cloud Implementation
Services
Positioned as a leader in
Everest – Application and Digital
Services in Capital Markets PEAK
Matrix 2020
Positioned as a leader in
Everest Group’s Open Banking
IT Services PEAK Matrix
Assessment 2020
Positioned as a leader in
IDC MarketScape:
Worldwide Manufacturing
Intelligence Transformation
Strategic Consulting 2020
Vendor Assessment
Positioned as a leader in
IDC MarketScape:
EMEA Digital Transformation
Service Providers for Oil and Gas
Industry 2020 Vendor Assessment
• Won the 2020 Microsoft
Datacenter Migration Partner of
the Year award
•
Awarded the 2020 IBM Beacon
Award for our Cognitive Digital
Commerce platform
For the complete list of awards and recognition, refer to https://www.infosys.com/about/awards
24 | Awards and recognition
Awards and recognition | 25
Infosys Annual Report 2020-21Infosys Annual Report 2020-21 Financial highlights
“Digital differentiation and Large Deal momentum
drive industry-leading growth in FY21”
Revenues (in ` crore)
Revenue growth
1,00,472
Crossed the milestone
of `1,00,000 crore in
revenue
10.7 %
In reported currency
(INR), industry-leading
growth in FY21
Operating margin
24.5 %
Improved by 320
basis points
Digital revenues
(as a % of total revenue)
48.5 %
31.3% growth on
Year-on-Year (YoY)
basis (USD)
Basic earnings per share
(par value of ` 5 each)
45.61
17.0% growth on
YoY basis
Free cash flows (in ` crore) (1)
22,020
YoY growth of 44.4%
FCF conversion at
113% of net profit
Dividend per share (in `)
27
Growth of 54.3%
on YoY basis
Consolidated cash and
investments (in ` crore) (2)
38,660
Continue to maintain
strong liquidity
position
Large Deal TCV
(Total contract value in US$ billion)
14.1
Large Deal TCV at an
all-time high
Notes:
(1)
(2)
Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the Consolidated Statement of Cash Flows prepared under IFRS.
Comprise cash and cash equivalents, current and non-current investments excluding investments in unquoted equity & preference shares, compulsorily convertible
debentures and others
Number of US$ 100 million+ clients
Utilization (excluding trainees)
Onsite mix
32
Increase of 4 clients YoY
84.7 %
Utilization at an
all-time high
25.8 %
Significant
improvement in
onsite mix
Return on equity
27.4 %
Improved by 1.6%
over the last fiscal
Proposal for buyback
Market capitalization (in ` crore)
Women employees
5,82,880
One of the top companies
in the country in terms of
market capitalization
38.6 %
In line with the Capital Allocation Policy, the Board, at its meeting held on April 14, 2021, approved the buyback of equity
shares, from the open market route through the Indian stock exchanges, amounting to ₹9,200 crore (Maximum Buyback
Size, excluding buyback tax) at a price not exceeding ₹1,750 per share (Maximum Buyback Price), subject to shareholders’
approval in the ensuing Annual General Meeting.
Key trends
In ` crore, except per equity share data
Revenues (1)
Net profit (1)(2)
Basic earnings per share (in `) (1)
Number of employees
In US$ million, except per equity share data
Revenues (1)
Net profit (1)(2)
Basic earnings per share (in US$) (1)
FY 2021
1,00,472
19,351
45.61
2,59,619
FY 2021
13,561
2,613
0.62
FY 2020
90,791
16,594
38.97
2,42,371
FY 2020
12,780
2,331
0.55
FY 2019
82,675
15,404
35.44
2,28,123
FY 2019
11,799
2,199
0.51
FY 2018
70,522
16,029
35.53
2,04,107
FY 2018
10,939
2,486
0.55
FY 2017
68,484
14,353
31.40
2,00,364
FY 2017
10,208
2,140
0.47
Notes
(1) Based on IFRS consolidated financial statements
(2) Attributable to owners of the Company
26 | Financial highlights
Financial highlights | 27
Infosys Annual Report 2020-21Infosys Annual Report 2020-21
Board’s report
Dear members,
The Board of Directors hereby submits the report of the business and operations of your Company (“the Company” or “Infosys”),
along with the audited financial statements, for the financial year ended March 31, 2021. The consolidated performance of the
Company and its subsidiaries has been referred to wherever required.
1. Results of our operations and state of affairs
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses(1)
Total operating expenses
Operating profit
Finance cost
Other income, net
Profit before tax
Tax expense
Profit after tax
Profit attributable to owners of the Company
Non-controlling interests
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Items that will be reclassified subsequently to profit or loss
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year attributable to the owners
of the Company
Non-controlling interest
Earnings per share (EPS)(2)
Basic
Diluted
in ` crore, except per equity share data
Standalone
Consolidated
For the
year ended March 31,
For the
year ended March 31,
2020
90,791
60,732
30,059
4,711
5,974
10,685
19,374
170
2,803
2020
2021
79,047 1,00,472
52,816
26,231
65,413
35,059
2021
85,912
55,541
30,371
3,676
4,559
8,235
3,814
4,526
8,340
22,136
17,891
126
2,467
114
2,700
4,627
5,810
10,437
24,622
195
2,201
24,477
20,477
26,628
22,007
6,429
18,048
18,048
–
268
(77)
191
4,934
15,543
15,543
–
(215)
(19)
(234)
7,205
19,423
19,351
72
253
53
306
5,368
16,639
16,594
45
(213)
364
151
18,239
15,309
19,651
16,732
–
–
78
58
42.37
42.33
36.34
36.32
45.61
45.52
38.97
38.91
1 crore = 10 million
Notes: The above figures are extracted from the audited standalone and consolidated financial statements as per Indian Accounting Standards (Ind AS).
(1)
Includes impairment of capital asset of ` 283 crore under CSR expense in the Standalone financial statements of the Company, as the Company
intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary consequent to the Companies (Corporate Social
Responsibility Policy) Amendment Rules, 2021.
The recoverable amount of capital asset is expected to exceed the carrying amount including in the period subsequent to the transfer to a
controlled subsidiary, hence no impairment charge has been recorded in the Consolidated financial statements.
Equity shares are at par value of ` 5 per share.
(2)
28 | Board’s report
Infosys Annual Report 2020-21
Financial position
Particulars
Cash and cash equivalents
Current investments
Net current assets
Property, plant and equipment
(including capital work-in-progress)
Right-of-use assets
Goodwill
Other intangible assets
Other non-current assets
Total assets
Non-current lease liabilities
Other non-current liabilities
Retained earnings – opening balance
Add:
Profit for the year
Transfer from Special Economic Zone Re-investment
Reserve on utilization
Less:
in ` crore, except equity share data
Standalone
As at March 31,
Consolidated
As at March 31,
2021
17,612
2,037
30,660
11,836
3,435
167
67
30,152
93,939
3,367
1,419
52,419
2020
13,562
4,006
28,600
12,037
2,805
29
48
22,302
81,041
2,775
812
54,070
2021
24,714
2,342
36,868
2020
18,649
4,655
33,720
13,482
13,389
4,794
6,079
2,072
21,226
1,08,386
4,587
3,152
56,309
4,168
5,286
1,900
13,449
92,768
4,014
2,054
57,566
18,048
15,543
19,351
16,594
967
1,036
1,039
1,080
Impact of adoption of Ind AS 116
–
Dividends (including dividend distribution tax if any)
(9,158)
Buyback of equity shares
Effect of modification of equity-settled share-based
payment awards to cash-settled awards
Transfer to general reserve
Transfer to Special Economic Zone Re-investment
Reserve
Financial liability under option arrangements
Payment towards acquisition of minority interest
Retained earnings – closing balance
Equity share capital
Other reserves and surplus(1)
Other comprehensive income
Non-controlling interest
Total equity
Total equity and liabilities
Number of equity shares
(1)
Excluding retained earnings
(17)
(9,553)
(4,717)
(9)
(1,470)
–
(9,120)
–
–
(40)
(9,517)
(4,717)
(9)
(1,554)
(1,470)
–
–
(1,554)
(3,204)
(2,464)
(3,354)
–
–
57,518
2,130
11,831
52
–
71,531
93,939
–
–
52,419
2,129
7,825
(139)
–
62,234
81,041
–
(28)
62,643
2,124
10,243
1,341
431
76,782
1,08,386
(2,580)
(598)
–
56,309
2,122
5,978
1,041
394
65,844
92,768
426,06,60,846 425,89,92,566 424,51,46,114 424,07,53,210
Infosys Annual Report 2020-21
Board’s report | 29
Summary Profit and Loss – standalone
Particulars
Year ended March 31,
in ` crore, except per equity share data
Revenue from operations
Gross profit
Selling and marketing expenses
General and administration expenses
Operating profit
Profit before tax
Net profit
Earnings per equity share
Basic
Summary Profit and Loss – consolidated
2021 % of revenue
100.0
35.4
4.3
5.3
25.8
28.5
21.0
85,912
30,371
3,676
4,559
22,136
24,477
18,048
2020 % of revenue YoY growth (%)
8.7
15.8
(3.6)
0.7
23.7
19.5
16.1
100.0
33.2
4.8
5.7
22.6
25.9
19.7
79,047
26,231
3,814
4,526
17,891
20,477
15,543
42.37
–
36.34
–
16.6
Particulars
Year ended March 31,
in ` crore, except per equity share data
Revenue from operations
Gross profit
Selling and marketing expenses
General and administration expenses
Operating profit
Profit before tax
Net profit
Profit attributable to owners of the Company
Earnings per equity share
Basic
2021 % of revenue
100.0
34.9
4.6
5.8
24.5
26.5
19.3
19.3
1,00,472
35,059
4,627
5,810
24,622
26,628
19,423
19,351
2020 % of revenue YoY growth (%)
10.7
16.6
(1.8)
(2.7)
27.1
21.0
16.7
16.6
100.0
33.1
5.2
6.6
21.3
24.2
18.3
18.3
90,791
30,059
4,711
5,974
19,374
22,007
16,639
16,594
45.61
–
38.97
–
17.0
Refer to the notes under the table, ‘Results of our operations and state of affairs’, for factors impacting net profit and basic EPS.
Based on Ind AS consolidated financial statements
Revenue distribution by geographical segments (in %)
Revenue distribution by offerings (in %)
61.5
61.3
60.8
51.5
39.2
48.5
24.1
24.2
11.8
11.6
2.6
2.9
2020 2021
North America
2020 2021
Europe
2020 2021
2020 2021
Rest of the World
India
2020 2021
Digital
2020 2021
Core
Revenue distribution by business segments (in %)
31.5
32.4
15.5
14.7
13.2
12.6
12.9
12.5
10.1
9.4
7.7
8.5
6.4
6.8
2.7
3.1
2020 2021
2020 2021
2020 2021
2020 2021
2020 2021
2020 2021
2020 2021
2020 2021
FS(1)
Retail(2)
COM(3)
EURS(4)
MFG(5)
Hi-Tech(6)
LS(7)
Others(8)
(1)
(2)
(3)
FS – Includes enterprises in Financial Services and Insurance
Retail – Includes enterprises in Retail, Consumer Packaged Goods and Logistics
COM – Includes enterprises in Communication, Telecom OEM and Media
30 | Board’s report
Infosys Annual Report 2020-21
(4)
(5)
(6)
(7)
(8)
EURS – Includes enterprises in Energy, Utilities, Resources and Services
MFG – Includes enterprises in Manufacturing
Hi-Tech – Includes enterprises in Hi-Tech
LS – Includes enterprises in Life Sciences and Healthcare
Others – Includes segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services
Global health pandemic from COVID-19
In fiscal 2020, when the COVID-19 pandemic first broke,
Infosys swiftly reacted by providing the required support
to the workforce, clients and the community. From setting
up a core team to monitor the situation closely and staying
in constant touch with the local authorities, sharing timely
updates with the global employee base, to enabling the
near-seamless transition to the remote mode of work – the
Company scaled up its efforts quickly and restored normalcy
of operations. Central to these efforts was the need to ensure
the physical safety and mental wellbeing of our global
workforce. In the early months of the pandemic, through its
employee repatriation effort, Infosys managed the evacuation
of 1,865 employees and 1,165 members of their families,
from 35 countries – a one-of-its-kind operation by a company.
Fiscal 2021 has seen the health crisis deepen, and the world’s
attention is focused on India’s response to it. With so many
global businesses relying on India’s technology services sector
to run their core operations, the industry’s resilience has wide-
ranging global impact. Corporations, along with delivering
business continuity for clients, must, with renewed vigor,
ensure the wellbeing of their employees and the communities
in which they operate.
Today, 96.5% of Infosys employees continue to work
from home. With a more virulent surge of the pandemic
in India, Infosys has ramped up its efforts significantly to
mitigate the impact of the virus. We have set up exclusive
COVID-19 care centers across seven Development Center
(DC) locations, including Bengaluru, Pune, NCR, Chennai,
and Hyderabad, and similar centers are on the anvil in the
coming weeks across all other Infosys locations. We plan to,
subject to approvals, set up similar centers in other Indian
cities where we have campuses. We tied up with COVID-19
testing laboratories across India, collaborated with emergency
ambulance providers in major cities, and partnered with
1,500+ hospitals, in 240 cities in India, to enable treatment
for employees and their families. All medical treatments
for COVID-19 are covered under employee insurance, and
employees who have contracted it are allowed 21 days of
additional paid leave to recuperate. Employee wellbeing
checks are conducted frequently. In the event of an unfortunate
turn, Infosys offers support to the grieving family, including
financial support through insurance.
Comprehending the importance of the role played by vaccines
in our fight against the virus, we have been working very
closely with government authorities and medical experts to
put together various frameworks for the immunization drive
to encourage employees and their family members to get
vaccinated. We have created COVID-19 vaccination centers
across Infosys campuses. Operations have commenced across
seven DCs already and work is in progress in other DCs. We
have also collaborated with 130+ hospitals in India where
employees and their families can be vaccinated. Committed
as always to holistic employee wellbeing, we have rolled out
over 900+ employee initiatives across locations, centered on
mental health, self-care, and prioritizing work-life balance.
Infosys’ helping hand extends beyond business. We have
honored the commitment of ` 100 crore for COVID-19
relief in India that we made in March 2020, through the
Infosys Foundation. This will help expand the capacity of
COVID-care hospital beds, increase the supply of oxygen
concentrators and ventilators, as well as provide food and
funds to migrant laborers impacted by the lockdowns. We
also leveraged our technological expertise, creating mobile
applications like ‘Crush Covid RI’ and ‘Apthamitra’ to help
local governments in their fight against COVID-19.
Our focus on our client commitments remained unwavering
through this period, reflecting in the record number of
large deals we secured even while working remotely. With
our operations teams ensuring smooth work-from-home
processes and remote collaboration for our 2,60,000+
global workforce, we were able to ensure that client service-
level agreements (SLAs) were met and project milestones
delivered on time. However, remote working conditions also
implied multiplied cybersecurity risks, not just for us but for
clients as well. Having been an early adopter of advanced
cybersecurity strategies, including the setting up of seven
Cyber Defence Centers in India, US and Europe, we were in
a position to minimize threats to our operations as well as
offer cybersecurity solutions to our clients. We continued to
provide critical support to clients in essential services sectors
such as banking, healthcare and communications around the
world. Although travel was ruled out for most of this fiscal,
we leveraged cloud and other digital transformation offerings
to bring in new business, ensuring maximization of benefits
to our shareholders.
As an organization, our external communication has had to
transition to the new virtual models as well. Events such as
the quarterly results, analyst meetings and the Annual General
Meeting have all been executed successfully leveraging our
in-house platforms such as Infosys Meridian. All recruitment
drives have also been conducted virtually. Our online learning
platform, Lex, and virtual classes allow our training programs
to continue unaffected, with 2,40,000 employees using the
platform in fiscal 2021. Leveraging initiatives like Skill Tags
and Digital Quotient has enabled learning and reskilling of
talent to proceed at an incredible pace. Digital Quotient acts
as a guide-on-the-go to ensure digital preparedness for our
talent, while Skill Tags allow employees to move beyond
learning to establish their skill expertise in new-age / niche
technology spaces. Thanks to structured learning paths made
available through Lex, there has been a threefold increase in
reskilled talent over the last fiscal.
Infosys Annual Report 2020-21
Board’s report | 31
At Infosys, even amid an unprecedented global crisis,
we continue to balance success as a business with
exemplary governance and responsiveness to the needs of
all our stakeholders.
Capital Allocation Policy
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over
a five-year period through a combination of semi-annual
dividends and / or share buyback and / or special dividends,
subject to applicable laws and requisite approvals, if any.
Free cash flow is defined as net cash provided by operating
activities less capital expenditure, as per the Consolidated
Statement of Cash Flows prepared under IFRS. Dividend and
buyback include applicable taxes.
In line with the Capital Allocation Policy, the Board, at its
meeting held on April 14, 2021, approved the buyback
of equity shares, from the open market route through
the Indian stock exchanges, amounting to ` 9,200 crore
(Maximum Buyback Size, excluding buyback tax) at a price
not exceeding ` 1,750 per share (Maximum Buyback Price),
subject to shareholders’ approval in the ensuing Annual
General Meeting (AGM). During the year, the Company paid
an interim dividend of ` 12 per share and announced a final
dividend of ` 15 per share, subject to shareholders’ approval
in the ensuing AGM. After returning the above amounts,
the Company would have returned approximately 83% of
the free cash flow for fiscal 2020 and fiscal 2021 through
dividends and buybacks, in line with the Capital Allocation
Policy announced in July 2019.
The Capital Allocation Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/capital-allocation-policy.pdf.
Liquidity
Our principal sources of liquidity are cash and cash
equivalents, investments and the cash flow that we generate
from our operations. We continue to be debt-free and
maintain sufficient cash to meet our strategic and operational
requirements. We understand that liquidity in the Balance
Sheet has to balance between earning adequate returns
and the need to cover financial and business requirements.
Liquidity enables us to be agile and ready for meeting
unforeseen strategic and business needs.
As of March 31, 2021, we had ` 30,660 crore in working
capital on a standalone basis, and ` 36,868 crore on
a consolidated basis.
Consolidated cash and investments stand at ` 30,764 crore
on a standalone basis and ` 38,660 crore on a consolidated
basis as at March 31, 2021, as against ` 21,321 crore on a
standalone basis, and ` 27,276 crore on a consolidated basis
as on March 31, 2020.
Consolidated cash and investments, on both standalone and
consolidated basis, include deposits with banks and financial
institutions with high credit ratings by international and
domestic credit rating agencies. As a result, liquidity risk of
cash and cash equivalents is limited. Ratings are monitored
periodically, and we have considered the latest available credit
information to the extent available in view of COVID-19 as
at the date of approval of the financial statements. Liquid
assets also include investments in liquid mutual fund units,
fixed maturity plan securities, certificates of deposit (CDs),
commercial paper, quoted bonds issued by government
and quasi-government organizations, and non-convertible
debentures. CDs represent marketable securities of banks and
eligible financial institutions for a specified time period with
high credit rating given by domestic credit rating agencies.
Investments made in non-convertible debentures are issued
by government-owned institutions and financial institutions
with high credit rating. We invest after considering
counterparty risks based on multiple criteria including Tier I
capital, capital adequacy ratio, credit rating, profitability, NPA
levels and deposit base of banks and financial institutions.
The details of these investments are disclosed under the ‘non-
current and current investments’ section in the Standalone and
Consolidated financial statements in this Annual Report.
Capital expenditure on tangible assets –
standalone
This year, on a standalone basis, additions to tangible
assets was ` 2,015 crore. This comprises ` 1,039 crore in
infrastructure, ` 975 crore for investment in computer
equipment, and ` 1 crore in vehicles.
In the previous year, we had additions to tangible assets of
` 3,035 crore. This comprised ` 2,263 crore in infrastructure,
` 765 crore for investment in computer equipment, and
` 7 crore in vehicles.
Capital expenditure on tangible assets –
consolidated
This year, on a consolidated basis, additions to tangible
assets was ` 2,231 crore. This comprises ` 1,071 crore in
infrastructure, ` 1,159 crore in computer equipment and
` 1 crore in vehicles.
In the previous year, we had additions to tangible assets of
` 3,437 crore. This comprised ` 2,500 crore in infrastructure,
` 930 crore for investment in computer equipment and
` 7 crore in vehicles.
Leases
This year, on a standalone basis, additions to right-of-use
(ROU) assets was ` 1,109 crore. This comprises ` 1,017 crore
in land and buildings, and ` 92 crore in computer equipment.
In the previous year, we had additions to ROU assets of ` 787
crore. This comprised ` 738 crore in land and buildings, and
` 49 crore in computer equipment.
This year, on a consolidated basis, additions to ROU assets
was ` 1,394 crore. This comprises ` 1,241 crore in land
and buildings, ` 140 crore in computer equipment and
` 13 crore in vehicles.
In the previous year, we had additions to ROU assets of
` 1,120 crore. This comprised ` 1,065 crore in land and
buildings, ` 49 crore for investment in computer equipment
and ` 6 crore in vehicles.
32 | Board’s report
Infosys Annual Report 2020-21
Dividend
The Company recommended / declared dividend as under:
Interim dividend
Final dividend
Total dividend
Payout ratio (interim and final dividend)
Fiscal 2021
Fiscal 2020
Dividend payout
(in ` crore)
5,112
6,391
Dividend per
share (in `)
12.00
(1) 15.00
27.00
(2) 52.2%
Dividend per
share (in `)
8.00
9.50
17.50
(2) 53.5%
Dividend payout
(in ` crore)
4,107
4,046
Note: Interim dividend payout for fiscal 2020 includes dividend distribution tax.
(1) Recommended by the Board of Directors at its meeting held on April 14, 2021. The payment is subject to the approval of the shareholders at the ensuing
AGM of the Company to be held on June 19, 2021. The record date for the purposes of the final dividend will be June 01, 2021 and will be paid on
June 25, 2021.
(2) Our present Capital Allocation Policy is to pay approximately 85% of the free cash flow cumulatively over a five-year period through a combination of
semi-annual dividends and / or share buyback and / or special dividends, subject to applicable laws and requisite approvals, if any. Free cash flow is
defined as net cash provided by operating activities less capital expenditure as per the Consolidated Statement of Cash Flows prepared under IFRS.
Particulars of loans, guarantees or investments
Loans, guarantees and investments covered under Section
186 of the Companies Act, 2013 form part of the Notes to the
financial statements provided in this Annual Report.
Transfer to reserves
We do not propose to transfer any amount to general reserve
on declaration of dividend.
Fixed deposits
We have not accepted any fixed deposits, including from the
public, and, as such, no amount of principal or interest was
outstanding as of the Balance Sheet date.
Particulars of contracts or arrangements made with
related parties
There were no contracts, arrangements or transactions entered
into during fiscal 2021. As required under the Companies Act,
2013, the prescribed Form AOC-2 is appended as Annexure 2
to the Board’s report.
Management’s discussion and analysis
In terms of the provisions of Regulation 34 of the Listing
Regulations, the Management’s discussion and analysis is set
out in this Annual Report.
Risk management report
In terms of the provisions of Section 134 of the Companies Act,
2013, a Risk management report is set out in this Annual Report.
Board policies
The details of the policies approved and adopted by the
Board as required under the Companies Act, 2013 and SEBI
regulations are provided in Annexure 8 to the Board’s report.
Material changes and commitments affecting
financial position between the end of the financial
year and date of the report
The Board, at its meeting held on April 14, 2021, approved
the proposal of buyback of equity shares. The details of the
buyback, together with its implications on the Company’s
financial position, are explained under the ‘Capital Allocation
Policy’ section of this report and the financial statements for
the year ended March 31, 2021.
There have been no other material changes and commitments
which affect the financial position of the Company that have
occurred between the end of the financial year to which the
financial statements relate and the date of this report.
2. Business description
Strategy
Our strategic objective is to build a sustainable and
resilient organization that remains relevant to the agenda
of our clients, while creating growth opportunities for our
employees, generating profitable returns for our investors
and contributing to the communities that we operate in.
Our clients and prospective clients are faced with
transformative business opportunities due to advances in
software and computing technology. These organizations
are dealing with the challenge of having to reinvent their
core offerings, processes and systems rapidly and position
themselves as ‘digitally enabled’. The current economic
climate and volatility, resulting from the COVID-19
pandemic, in their operations has accelerated their adoption
of digital technologies – to enhance organizational resilience,
get competitive advantage and optimize cost structures. The
journey to the digital future requires not just an understanding
of new technologies and new ways of working, but a deep
appreciation of existing technology landscapes, business
processes and practices. Our strategy is to be a navigator for
our clients as they ideate, plan and execute on their journey
to a digital future.
In fiscal 2021, we continued to execute our four-pronged
strategy to strengthen our relevance to clients and drive
accelerated value creation. We believe the investments
we have made, and continue to make, in our strategy will
enable us to advise and help our clients as they tackle these
market conditions, especially in the areas of digitization of
processes, migration to cloud-based technologies, workplace
transformation, business model transformation, data
analytics, enhanced cybersecurity controls and cost structure
optimization in IT. Further, we have successfully enabled
our employees worldwide to work remotely and securely –
thus achieving the operational stability to deliver on client
commitments and ensuring our own business continuity.
Infosys Annual Report 2020-21
Board’s report | 33
Scale Agile Digital
Energize the core
Reskill our people
Expand localization
In fiscal 2021, we launched our integrated cloud offering,
Infosys CobaltTM, bringing together 14,000+ cloud assets,
200+ solution blueprints and an array of ecosystem alliances.
Infosys CobaltTM is helping enterprises to securely access cloud
capabilities with the assurance of single-point accountability
for outcomes. We also launched Infosys Applied AI to help
enterprises adopt a comprehensive approach and roadmap to
scaling enterprise-grade AI for their businesses.
For details of our continued investments and outcomes of our
strategic initiatives, please refer to the Management’s Discussion
and Analysis section of this Annual Report.
Organization
Our go-to-market business units are organized as:
• Financial Services and Insurance
• Life Sciences and Healthcare
• Retail, Consumer Packaged Goods and Logistics
• Communications, Telecom OEM and Media
• Energy, Utilities, Resources and Services
• Manufacturing
• Hi-tech
• Others, which includes India, Japan, China, Infosys Public
Services and other Public Service enterprises
Our solutions have been primarily classified as digital
and core.
Digital:
• Experience
• Insight
• Innovate
• Accelerate
• Assure
Core:
• Application management services
• Proprietary application development services
• Independent validation solutions
• Product engineering and management
• Infrastructure management services
• Traditional enterprise application implementation
• Support and integration services
Our products and platforms include:
• Finacle®
• Edge Suite
• Infosys NIA®
• Infosys McCamish
• Panaya®
• Skava®
• Stater Mortgage Servicing Platform
• Wingspan®
• Infosys Meridian
• CyberNext
• LEAP
Infrastructure
We added 0.86 million sq. ft. of physical infrastructure space
during the year. The total available space as on March 31,
2021 stands at 52.83 million sq. ft. We have presence in more
than 50 countries across 234 locations as on March 31, 2021.
Mergers and acquisitions
Infosys has a systematic M&A approach aimed to strengthen
digital services capabilities, deepen industry expertise,
and expand geographical footprint. Focused on executing
Infosys’ Agile Digital strategy, during the year, the Company
completed three acquisitions:
• GuideVision, s.r.o. a leading ServiceNow Elite Partner
in Europe augmenting Infosys CobaltTM portfolio of
cloud services and strengthening nearshore delivery
presence on October 1, 2020
• Kaleidoscope Animations, Inc., a US-based product
design and development firm strengthening presence
in Medical devices, Consumer and
Industrial
markets on October 9, 2020
• Beringer Commerce Inc. and Beringer Capital Digital
Group Inc., collectively known as Blue Acorn iCi, an
award-winning, Adobe Platinum partner in the US, and
a leader in digital customer experience, commerce and
analytics on October 27, 2020
These acquisitions through Infy Consulting Company
Ltd (a wholly-owned subsidiary of Infosys Consulting
Holding AG) and Infosys Nova Holdings LLC (a wholly-
owned subsidiary of Infosys Limited) were made for a
total consideration of ` 1,407 crore, comprising a cash
consideration of ` 1,307 crore and contingent consideration
with an estimated fair value of ` 100 crore as on the date of
acquisition. Refer to Note 2.1 of the Consolidated financial
statements for further details of these acquisitions.
Subsidiaries
We, along with our subsidiaries, provide consulting,
technology, outsourcing and next-generation digital services.
At the beginning of the year, we had 23 direct subsidiaries
and 52 step-down subsidiaries. As on March 31, 2021, we
have 24 direct subsidiaries and 62 step-down subsidiaries.
The changes in subsidiaries during the year is included in the
Standalone financial statements of the Company.
During the year, the Board of Directors reviewed the affairs
of the subsidiaries. In accordance with Section 129(3) of the
Companies Act, 2013, we have prepared the Consolidated
financial statements of the Company, which form part of this
Annual Report. Further, a statement containing the salient
features of the financial statements of our subsidiaries in
the prescribed format AOC-1 is appended as Annexure 1 to
the Board’s report. The statement also provides details of the
34 | Board’s report
Infosys Annual Report 2020-21
performance and financial position of each of the subsidiaries,
along with the changes that occurred, during fiscal 2021.
In accordance with Section 136 of the Companies Act, 2013,
the audited financial statements, including the Consolidated
financial statements and related information of the Company
and audited accounts of each of its subsidiaries, are available
on our website, www.infosys.com.
3. Human resources management
Our professionals are our most important assets. We are
committed to hiring and retaining the best talent and being
among the industry’s leading employers. For this, we focus
on promoting a collaborative, transparent and participative
organization culture, and rewarding merit and sustained high
performance. Our human resource management focuses on
allowing our employees to develop their skills, grow in their
career and navigate their next.
Internal complaints committee
Infosys’ goal has always been to create an open and safe
workplace for every employee to feel empowered, irrespective
of gender, sexual preferences, and other factors, and contribute
to the best of their abilities. Towards this, the Company has
set up the Anti-Sexual Harassment Initiative (ASHI), which
proudly completes 21 years of enabling a positive and safe
work environment for our employees.
Our ASHI practices have set an industry benchmark as it
ranked first among 300+ companies that participated in
an external survey on the best anti-sexual harassment
initiatives in 2017, 2019 and 2020. Infosys has constituted
an Internal Committee (IC) in all the development centers of
the Company across India to consider and resolve all sexual
harassment complaints reported by women. The IC has
been constituted as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013,
and the committee includes external members from NGOs
or with relevant experience. Investigations are conducted
and decisions made by the IC at the respective locations,
and a senior woman employee is the presiding officer over
every case. Half of the total members of the IC are women.
The role of the IC is not restricted to mere redressal of
complaints but also encompasses prevention and prohibition
of sexual harassment. In the last one year, the IC has worked
extensively on creating awareness on relevance of sexual
harassment issues in the new normal by using brand-new and
innovative measures to help employees understand the forms
of sexual harassment while working remotely. The details of
sexual harassment complaints that were filed, disposed of and
pending during the financial year are provided in the Business
Responsibility Report of this Annual report.
Particulars of employees
The Company had 2,04,396 employees on standalone
basis and 2,59,619 employees on consolidated basis
as of March 31, 2021.
The percentage increase in remuneration, ratio of
remuneration of each director and key managerial personnel
(KMP) (as required under the Companies Act, 2013) to the
median of employees’ remuneration, and the list of top 10
employees in terms of remuneration drawn, as required under
Section 197(12) of the Companies Act, 2013, read with Rule
5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, form part of Annexure
3 to this Board’s report. The statement containing particulars
of employees employed throughout the year and in receipt
of remuneration of ` 1.02 crore or more per annum and
employees employed for part of the year and in receipt of
remuneration of ` 8.5 lakh or more per month, as required
under Section 197(12) of the Companies Act, 2013, read with
Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, is provided in a separate
exhibit forming part of this report and is available on the
website of the Company, at https://www.infosys.com/investors/
reports-filings/Documents/exhibitboards-report2021.pdf.
The Annual Report and accounts are being sent to the
shareholders excluding the aforesaid exhibit. Shareholders
interested in obtaining this information may access the same
from the Company website. In accordance with Section 136
of the Companies Act, 2013, this exhibit is available for
inspection by shareholders through electronic mode.
Notes:
1
The employees mentioned in the aforesaid exhibit have / had
permanent employment contracts with the Company.
The employees are neither relatives of any directors of the
Company, nor hold 2% or more of the paid-up equity share capital
of the Company as per Rule 5 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014.
The details of employees posted outside India and in receipt of a
remuneration of ` 60 lakh or more per annum or ` 5 lakh or more
a month can be made available on specific request.
2.
3.
Employee stock options / Restricted Stock Units
(RSUs)
The Company grants share-based benefits to eligible employees
with a view to attracting and retaining the best talent,
encouraging employees to align individual performances with
Company objectives, and promoting increased participation
by them in the growth of the Company.
Infosys Expanded Stock Ownership Program 2019 (“the
2019 Plan”)
On June 22, 2019, pursuant to approval by the shareholders
in the AGM, the Board has been authorized to introduce,
offer, issue and provide share-based incentives to eligible
employees of the Company and its subsidiaries under the
2019 Plan. The maximum number of shares under the
2019 Plan shall not exceed 5,00,00,000 equity shares. To
implement the 2019 Plan, up to 4,50,00,000 equity shares
may be issued by way of secondary acquisition of shares by the
Infosys Expanded Stock Ownership Trust. The RSUs granted
under the 2019 Plan shall vest based on the achievement of
defined annual performance parameters as determined by the
administrator (the nomination and remuneration committee).
The performance parameters will be based on a combination
of relative Total Shareholder Return (TSR) against selected
industry peers and certain broader market domestic and global
indices and operating performance metrics of the Company as
decided by the administrator. Each of the above performance
parameters will be distinct for the purposes of calculation of
the quantity of shares to vest based on performance. These
instruments will generally vest between a minimum of one to
a maximum of three years from the grant date.
Infosys Annual Report 2020-21
Board’s report | 35
2015 Stock Incentive Compensation Plan
(“the 2015 Plan”)
On March 31, 2016, pursuant to the approval by the
shareholders through postal ballot, the Board was authorized
to introduce, offer, issue and allot share-based incentives to
eligible employees of the Company and its subsidiaries under
the 2015 Plan. The maximum number of shares under the
2015 Plan shall not exceed 2,40,38,883 equity shares (not
adjusted for bonus issue). These instruments will generally
vest over a period of four years and the Company expects to
grant the instruments under the 2015 Plan over the period
of four to seven years. These RSUs and stock options shall be
exercisable within the period as approved by the nomination
and remuneration committee. The exercise price of the RSUs
will be equal to the par value of the shares and the exercise
price of the stock options would be the market price as
on the date of grant.
Consequent to the September 2018 bonus issue, all the then
outstanding options granted under the stock option plan have
been adjusted for bonus shares.
The total number of equity shares and American Depositary
Receipts (ADRs) to be allotted to the employees of the
Company and its subsidiaries under the 2015 Plan does
not cumulatively exceed 1% of the issued capital. For the
shares and ADRs issued under the 2019 Plan, the cumulative
amount does not exceed 1.15% of the issued capital. The
2019 Plan and 2015 Plan are in compliance with SEBI (Share
Based Employee Benefits) Regulations, 2014, as amended
from time to time, and there has been no material change to
the plans during the fiscal.
The details of the 2019 Plan and 2015 Plan, including
terms of reference, and the requirement specified under
Regulation 14 of the SEBI (Share Based Employee Benefits)
Regulations, 2014, are available on the Company’s website, at
https://www.infosys.com/investors/reports-filings/
Documents/disclosures-pursuant-SEBI-regulations2021.pdf.
The details of the 2019 Plan and 2015 Plan form part
of the Notes to accounts of the financial statements
in this Annual Report.
4. Corporate governance
Our corporate governance philosophy
Our corporate governance practices are a reflection of our value
system encompassing our culture, policies, and relationships
with our stakeholders. Integrity and transparency are key
to our corporate governance practices to ensure that we
gain and retain the trust of our stakeholders at all times.
Corporate governance is about maximizing shareholder
value legally, ethically and sustainably. At Infosys, the Board
exercises its fiduciary responsibilities in the widest sense of
the term. Our disclosures seek to attain the best practices
in international corporate governance. We also endeavor to
enhance long-term shareholder value and respect minority
rights in all our business decisions.
Our Corporate governance report for fiscal 2021 forms part
of this Annual Report.
Board diversity
The Company recognizes and embraces the importance of a
diverse board in its success. We believe that a truly diverse
board will leverage differences in thought, perspective,
knowledge, skill, regional and industry experience, cultural
and geographical backgrounds, age, ethnicity, race and
gender, that will help us retain our competitive advantage.
The Board Diversity Policy adopted by the Board sets out its
approach to diversity. The policy is available on our website,
at https://www.infosys.com/investors/corporate-governance/
documents/board-diversity-policy.pdf.
Additional details on Board diversity are available
in the Corporate governance report that forms part of
this Annual Report.
Number of meetings of the Board
The Board met seven times during the financial year. The
meeting details are provided in the Corporate governance
report that forms part of this Annual Report. The maximum
interval between any two meetings did not exceed 120 days,
as prescribed by the Companies Act, 2013.
Policy on directors’ appointment and remuneration
The current policy is to have an appropriate mix of executive,
non-executive and independent directors to maintain
the independence of the Board, and separate its functions
of governance and management. As of March 31, 2021,
the Board had nine members, two of whom are executive
directors, a non-executive and non-independent director and
six independent directors. Two of the independent directors
of the Board are women. The details of Board and committee
composition, tenure of directors, areas of expertise and other
details are available in the Corporate governance report that
forms part of this Annual Report.
The policy of the Company on directors’ appointment
and remuneration, including the criteria for determining
qualifications, positive attributes, independence of a director
and other matters, as required under Sub-section (3) of
Section 178 of the Companies Act, 2013, is available on our
website, at https://www.infosys.com/investors/corporate-
governance/documents/nomination-remuneration-policy.pdf.
We affirm that the remuneration paid to the directors is as
per the terms laid out in the Nomination and Remuneration
Policy of the Company.
Declaration by independent directors
The Company has received necessary declaration from each
independent director under Section 149(7) of the Companies
Act, 2013, that he / she meets the criteria of independence
laid down in Section 149(6) of the Companies Act, 2013 and
Regulation 25 of the Listing Regulations.
Board evaluation
The nomination and remuneration committee engaged Egon
Zehnder, external consultants, to conduct Board evaluation
for the year. The evaluation of all the directors, committees,
Chairman of the Board, and the Board as a whole was
conducted based on the criteria and framework adopted
by the Board. The Board evaluation process was completed
during fiscal 2021. The evaluation parameters and the process
have been explained in the Corporate governance report.
36 | Board’s report
Infosys Annual Report 2020-21
Familiarization program for independent directors
All new independent directors inducted into the Board
attend an orientation program. The details of the training
and familiarization program are provided in the Corporate
governance report. Further, at the time of the appointment of
an independent director, the Company issues a formal letter
of appointment outlining his / her role, function, duties and
responsibilities. The format of the letter of appointment
is available on our website, at https://www.infosys.com/
investors/corporate-governance/Documents/appointment-
independent-director.pdf.
Directors and KMP
Inductions
Uri Levine was appointed to the Board as an independent
director effective April 20, 2020 for a period of three years
and the same was approved by the shareholders at the 39th
AGM held on June 27, 2020.
Bobby Parikh was appointed to the Board as an additional
and independent director effective July 15, 2020 for a period
of three years subject to the approval of shareholders. In the
opinion of the Board, he is a well-respected business leader
who brings a wealth of experience and financial acumen to the
Infosys Board. His vast experience in the realm of corporate
governance will greatly benefit the Company. Further, he
possesses integrity and relevant proficiency which will bring
tremendous value to the Board and to the Company. The
Board recommends his appointment to the shareholders. The
notice convening the 40th AGM to be held on June 19, 2021
sets out the details.
Chitra Nayak was appointed to the Board as an additional and
independent director effective March 25, 2021 for a period
of three years subject to the approval of shareholders. In the
opinion of the Board, she brings Silicon Valley experience
expertise, integrity and proficiency that will provide valuable
insights as Infosys pivots its service offerings in consulting
and digital solutions to help businesses in their strategic
intent of digital transformation. The Board recommends her
appointment to the shareholders. The notice convening the
40th AGM to be held on June 19, 2021 sets out the details.
Reappointments
Director liable to retire by rotation
As per the provisions of the Companies Act, 2013, U.B.
Pravin Rao, COO and Whole-time Director, whose office
is liable to retire at the ensuing AGM, being eligible, seeks
reappointment. Based on performance evaluation and the
recommendation of the nomination and remuneration
committee, the Board recommends his reappointment. U.B
Pravin Rao will be superannuating on December 12, 2021
as per the Company’s policy. The notice convening the 40th
AGM to be held on June 19, 2021 sets out the details.
Reappointment of independent director
Michael Gibbs was appointed as an independent director for
the first term of three years effective July 13, 2018. His office
of directorship is due for retirement on July 12, 2021. Based
on the recommendation of the nomination and remuneration
committee and after taking into account the performance
evaluation of his first term of three years and considering
the knowledge, acumen, expertise, experience and the
substantial contribution, the committee has recommended
the appointment of Michael Gibbs to the Board for a second
term of five years. The Board, at its meeting held on April 14,
2021, approved the reappointment of Michael Gibbs as an
independent director of the Company with effect from July
13, 2021 to July 12, 2026, whose office shall not be liable to
retire by rotation. The Board recommends his reappointment
to the shareholders. The notice convening the 40th AGM to
be held on June 19, 2021 sets out the details.
Retirements and resignations
D.N. Prahlad, an independent director, resigned as a member
of the Board effective April 20, 2020 to devote more time
to his other business commitments. The disclosure in this
regard is available at https://www.infosys.com/newsroom/
press-releases/2020/independent-director-stepping-
down-20april2020.html.
Dr. Punita Kumar-Sinha, an independent director, on
completion of her tenure, retired as a member of the Board
effective January 13, 2021. The disclosure in this regard is
available at https://www.infosys.com/investors/documents/
retirement-independent-director-13jan2021.pdf.
Committees of the Board
As on March 31, 2021, the Board had five committees:
the audit committee, the corporate social responsibility
committee, the nomination and remuneration committee,
the risk management committee, and the stakeholders
relationship committee. A majority of the committees consists
entirely of independent directors.
The Board, at its meeting held on April 14, 2021, instituted
the Environment, Social and Governance (ESG) committee.
The committee consists entirely of independent directors.
During the year, all recommendations made by the committees
were approved by the Board.
A detailed note on the composition of the Board and its
committees is provided in the Corporate governance report.
Internal financial control and its adequacy
The Board has adopted policies and procedures for ensuring
the orderly and efficient conduct of its business, including
adherence to the Company’s policies, safeguarding of its
assets, prevention and detection of fraud, error reporting
mechanisms, accuracy and completeness of the accounting
records, and timely preparation of reliable financial
disclosures. For more details, refer to the ‘Internal control
systems and their adequacy’ section in the Management’s
discussion and analysis, which forms part of this Annual Report.
Cybersecurity
In the light of the COVID-19 pandemic, fiscal 2021 was a
challenging year for businesses globally. At Infosys, while
our employees operated efficiently as a remote workforce,
we continue to keep a close tab on our cybersecurity posture.
We continued our efforts to keep ourselves up to date
with cybersecurity events globally so as to achieve higher
compliance and its continued sustenance. We continue to
be certified against the Information Security Management
Infosys Annual Report 2020-21
Board’s report | 37
System (ISMS) Standard ISO 27001:2013. During the year,
our focus on our cybersecurity personnel’s training and
reskilling went ahead as planned, together with our initiatives
on improving cybersecurity processes and technologies.
Our periodic stakeholder interactions ensured that we have
sponsorship from the senior management and all critical
stakeholders in a timely manner.
Significant and material orders
There are no significant and material orders passed by the
regulators or courts or tribunals impacting the going concern
status and the Company’s operations in future.
Reporting of frauds by auditors
During the year under review, neither the statutory auditors
nor the secretarial auditor has reported to the audit committee,
under Section 143 (12) of the Companies Act, 2013, any
instances of fraud committed against the Company by its
officers or employees, the details of which would need to be
mentioned in the Board’s report.
Annual return
In accordance with the Companies Act, 2013, the
annual return in the prescribed format is available at
https://www.infosys.com/investors/reports-filings/annual-
report/annual-reports.html.
Secretarial standards
The Company complies with all applicable secretarial standards
issued by the Institute of Company Secretaries of India.
Listing on stock exchanges
The Company’s shares are listed on BSE Limited and the
National Stock Exchange of India Limited, and its ADSs are
listed on the New York Stock Exchange (NYSE).
Investor Education and Protection Fund (IEPF)
During the year, the Company has transferred the unclaimed
and un-encashed dividends of ` 1,75,57,643. Further, 16,264
corresponding shares on which dividends were unclaimed
for seven consecutive years were transferred as per the
requirements of the IEPF Rules. The details of the resultant
benefits arising out of shares already transferred to the IEPF,
year-wise amounts of unclaimed / un-encashed dividends
lying in the unpaid dividend account up to the year, and
the corresponding shares, which are liable to be transferred,
are provided in the Shareholder information section of the
Corporate governance report and are also available on our
website, at www.infosys.com/IEPF.
Directors’ responsibility statement
The financial statements are prepared in accordance with the
Indian Accounting Standards (Ind AS) under the historical
cost convention on accrual basis except for certain financial
instruments, which are measured at fair values, the provisions
of the Companies Act, 2013 and guidelines issued by
SEBI. The Ind AS are prescribed under Section 133 of the
Companies Act, 2013, read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) Amendment Rules, 2016.
Accounting policies have been consistently applied except
where a newly-issued accounting standard is initially adopted
38 | Board’s report
or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
The directors confirm that:
• In preparation of the annual accounts for the financial
year ended March 31, 2021, the applicable accounting
standards have been followed and there are no material
departures.
• They have selected such accounting policies and applied
them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of
the financial year and of the profit of the Company for
that period.
• They have taken proper and sufficient care towards the
maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.
• They have prepared the annual accounts on a going
concern basis.
• They have laid down internal financial controls, which are
adequate and are operating effectively.
• They have devised proper systems to ensure compliance
with the provisions of all applicable laws, and such systems
are adequate and operating effectively.
5. Audit reports and auditors
Audit reports
• The Auditors’ Report for fiscal 2021 does not contain any
qualification, reservation or adverse remark. The Report is
enclosed with the financial statements in this Annual Report.
• The Secretarial Auditors’ Report for fiscal 2021 does not
contain any qualification, reservation or adverse remark.
The Secretarial Auditors’ Report is enclosed as Annexure 5
to the Board’s report.
• The Auditor’s certificate confirming compliance with
conditions of corporate governance as stipulated under
Listing Regulations, for fiscal 2021 is enclosed as Annexure
4 to the Board’s report.
• The auditor’s certificate on the implementation of share-
based schemes in accordance with SEBI (Share Based
Employee Benefits) Regulations, 2014, will be made
available at the AGM, electronically.
Auditors
Statutory auditors
Under Section 139 of the Companies Act, 2013 and the Rules
made thereunder, it is mandatory to rotate the statutory
auditors on completion of the maximum term permitted
under the provisions of Companies Act, 2013. In line with the
requirements of the Companies Act, 2013, Deloitte Haskins &
Sells LLP, Chartered Accountants (Firm registration number
117366 W/W 100018) (“Deloitte”) was appointed as the
statutory auditors of the Company, to hold office for a period
of five consecutive years from the conclusion of the 36th AGM
of the Company held on June 24, 2017, till the conclusion
of the 41st AGM to be held in 2022. The requirement for
the annual ratification of auditors’ appointment at the AGM
has been omitted pursuant to Companies (Amendment) Act,
2017, notified on May 7, 2018.
Infosys Annual Report 2020-21
During the year, the statutory auditors have confirmed
that they satisfy the independence criteria required under
the Companies Act, 2013, the Code of Ethics issued by
the Institute of Chartered Accountants of India and the
U.S. Securities and Exchange Commission and the Public
Company Accounting Oversight Board.
Secretarial auditor
Parameshwar G. Hegde of Hegde & Hegde, Practicing
Company Secretaries, is appointed as secretarial auditor of
the Company for fiscal 2022, as required under Section 204
of the Companies Act, 2013 and Rules thereunder.
Cost records and cost audit
Maintenance of cost records and requirement of cost audit
as prescribed under the provisions of Section 148(1) of the
Companies Act, 2013 are not applicable for the business
activities carried out by the Company.
6. Corporate social responsibility (CSR)
Infosys has been an early adopter of CSR initiatives.
The Company works primarily through the Infosys
Foundation, towards supporting projects in the areas of
protection of national heritage, restoration of historical
sites, and promotion of art and culture; destitute care and
rehabilitation; environmental sustainability and ecological
balance; promoting education, and enhancing vocational
skills; promoting healthcare including preventive healthcare,
and rural development. In fiscal 2021, the Company’s CSR
efforts included COVID-19 relief in multiple states.
The Company’s CSR Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
Documents/corporate-social-responsibility-policy.pdf. The
annual report on our CSR activities is appended as Annexure
6 to the Board’s report. Infosys also undertakes CSR initiatives
outside of India, in Australia and the US. The initiatives in
the US are carried out through Infosys Foundation USA. The
said initiatives are over and above the statutory requirement.
The highlights of the initiatives undertaken by the Company,
the Infosys Foundation, and Infosys Foundation USA form
part of this Annual Report.
7. Conservation of energy, research and
development, technology absorption,
foreign exchange earnings and outgo
The particulars, as prescribed under Sub-section (3)(m)
of Section 134 of the Companies Act, 2013, read with the
Companies (Accounts) Rules, 2014, are enclosed as Annexure
7 to the Board’s report.
Business Responsibility Report (BRR)
The Listing Regulations mandate the inclusion of the BRR
as part of the Annual Report for the top 1,000 listed entities
based on market capitalization. In compliance with the
Listing Regulations, we have integrated BRR disclosures
into our Annual Report.
We also publish a GRI Standards-based Sustainability /
ESG Report annually. The report is independently assured
by DNV GL. Details are available on our website, at
https://www.infosys.com/sustainability/documents/infosys-
esg-report-2020-21.pdf.
Environmental, Social and Governance (ESG)
2020 marked a milestone year for the Company. We turned
carbon-neutral 30 years ahead of the global targets, fulfilling
the vision of our founders towards sustainable growth. In
October 2020, we launched our ESG vision and ambitions for
2030, cementing our commitment to values-based progress.
The ESG committee of the Board, formed in April 2021, is
chaired by Lead Independent Director, Kiran Mazumdar-
Shaw, and includes independent directors Chitra Nayak and
Uri Levine as its members.
Acknowledgments
We thank our clients, vendors, investors, bankers, employee volunteers and trustees of the Infosys Foundation, Infosys
Foundation USA and Infosys Science Foundation for their continued support during the year. We place on record our
appreciation for the contribution made by our employees at all levels. Our consistent growth was made possible by their hard
work, solidarity, cooperation and support.
We thank the governments of various countries where we have our operations. We thank the Government of India, particularly
the Ministry of Labour and Employment, the Ministry of Environment and Forests, the Ministry of New and Renewable
Energy, the Ministry of Communications, the Ministry of Electronics and Information Technology (Dept of IT), the Ministry
of Commerce and Industry, the Ministry of Finance, the Ministry of Corporate Affairs, the Central Board of Direct Taxes, the
Central Board of Indirect Taxes and Customs, GST authorities, the Reserve Bank of India, Securities and Exchange Board of
India (SEBI), various departments under the state governments and union territories, the Software Technology Parks (STPs) /
Special Economic Zones (SEZs) – Bengaluru, Bhubaneswar, Chandigarh, Chennai, Gurugram, Hubballi, Hyderabad, Indore,
Jaipur, Kochi, Kolkata, Mangaluru, Mohali, Mumbai, Mysuru, Nagpur, Noida, Pune, and Thiruvananthapuram – and other
government agencies for their support, and look forward to their continued support in the future. We also thank the US federal
government, the U.S. Securities and Exchange Commission, the Internal Revenue Service, and various state governments,
especially those of Indiana, Rhode Island, Connecticut, Texas, Arizona and North Carolina.
Bengaluru
April 14, 2021
Infosys Annual Report 2020-21
for and on behalf of the Board of Directors
Sd/-
Sd/-
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and Managing Director
Board’s report | 39
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Annexures to the Board’s report
Annexure I – Statement containing the salient features of the financial statements of subsidiaries / associate companies / joint ventures
(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act,2013, read with Rule 5 of the Companies (Accounts) Rules, 2014 - AOC -1)
in ` crore, except % of shareholding and exchange rate
Name of the subsidiary
Sl.
no.
Financial period
ended
Date of
acquisition
Exchange rate /
reporting currency
Share
capital
Reserves
and surplus
Total
assets
Total liabilities
(excluding
share capital
and reserves
and surplus)
2,009
Investments
664
Turnover(1)
(Includes
inter-
company
transactions)
5,450
34
4,996 7,039
1,312
(1,261) 1,061
1,010
25
2,778
Profit /
(Loss) before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss) after
taxation(1)
% of
shareholding
916
834
196
221
695
99.99
178
656
100.00
42
154
99.99
1 USD = ` 73.07
175
359 2,173
1,639
2,213
INR
INR
Dec 4,
2009
3
4
6
5
1
2
Dec 31, 2020
Mar 31, 2021 NA
Mar 31, 2021 NA
Mar 31, 2021 NA
Infosys BPM Limited Mar 31, 2021 NA
EdgeVerve Systems
Limited
Infosys McCamish
Systems LLC(2)
Infy Consulting
Company
Limited(3)(30)
Infosys Public
Services, Inc.
Stater Nederland
B.V.(4)
Infosys Technologies
(China) Co. Limited Dec 31, 2020 NA
Infosys Poland
Sp. z o.o.(2)
Infosys Compaz
Pte. Ltd(5)
Infosys Technologies
(Shanghai) Company
Limited
Infosys Technologies
S. de R. L. de C. V.
12 Outbox Systems Inc.
Dec 31, 2020 NA
Dec 31, 2020 NA
Dec 31, 2020 NA
Mar 31, 2021
Mar 31, 2021
10
11
8
7
9
Oct 1,
2007
Nov 16,
2018
Jan 31, 2021
Mar 13,
2020
1 GBP =
` 100.75
135
25
403
1 USD = ` 73.11
98
548
971
1 EUR = ` 89.74
8
325
562
1 RMB = ` 11.22
331
(116)
484
1 PLN = ` 18.47
4
577 1,018
1 SGD = ` 54.35
13
210
393
1 RMB = ` 11.22
895
(306) 1,072
1 MXN = ` 3.68
65
203
379
1 USD = ` 72.96
263
(243)
191
13
14
dba Simplus (US)(6)
Infosys Consulting
AG(3)
Infosys Consulting
GmbH(3)
15 HIPUS Co., Ltd(5)
16
Panaya Ltd.(7)
Dec 31, 2020 NA
1 CHF = ` 82.93
1
115
314
Dec 31, 2020 NA
1 EUR = ` 89.74
17
22
144
Apr 1,
2019
Mar 31, 2021
Dec 31, 2020 NA
1 JPY = ` 0.6612
1 USD = ` 73.07
32
256
42 1,288
368
(907)
1,214
1,019
243
325
229
269
437
170
483
111
171
198
105
–
–
–
–
–
43
–
–
–
57
–
–
–
–
1,166
746
755
503
425
387
387
342
332
279
260
1,366
25
1,227
125
6
40
12
–
35
15
19
100.00
85
100.00
36
75.00
47
100.00
75
55
99.99
60.00
48
47
110
70
(98)
–
(98)
100.00
54
16
38
100.00
(12)
10
8
31
(8)
–
1
2
10
20
(12)
100.00
9
6
100.00
100.00
21
(28)
81.00
100.00
Name of the subsidiary
Financial period
ended
Date of
acquisition
Exchange rate /
reporting currency
Share
capital
Reserves
and surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss) before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss) after
taxation(1)
% of
shareholding
Sl.
no.
17
18
Infosys Consulting
Ltda.
Stater N.V.(5)
19 Fluido Oy(8)
20
21
22
23
Stater Belgium
N.V./S.A.(9)(10)
Infosys (Czech
Republic)
Limited s.r.o(2)
Infosys Consulting
S.R.L.
Portland Group Pty.
Ltd(2)
24 WDW
25
Communications,
Inc(11)
Infosys BPO
Americas LLC(2)
26 WongDoody, Inc.(11)
27
Infosys Management
Consulting Pty.
Limited(3)
Infosys Technologies
(Sweden) AB
29 HypoCasso B.V.(4)
30
Infosys Middle East
FZ LLC(8)
31 Kallidus Inc.(12)
28
32 Fluido Sweden AB
33
34 Brilliant Basics
Limited(14)
Panaya Inc.
35
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4
1
Dec 31, 2020 NA
1 BRL = ` 14.06
421
(348)
177
Dec 31, 2020
Dec 31, 2020
May 23,
2019
Oct 11,
2018
1 EUR = ` 89.74
38
503
957
1 EUR = ` 89.74
5
96
169
Dec 31, 2020 NA
1 EUR = ` 89.74
54
24
134
104
416
68
56
Mar 31, 2021 NA
Dec 31, 2020 NA
Mar 31, 2021
Jan 4,
2012
1 CZK = ` 3.28
1 RON =
` 18.45
3
17
79
210
128
21
96
1 AUD = ` 55.70
18
131
236
Dec 31, 2020 NA
1 USD = ` 73.07
–
(198)
28
226
Mar 31, 2021 NA
Dec 31, 2020 NA
1 USD = ` 73.11
1 USD = ` 73.07
57
1
(49)
271
49
302
Dec 31, 2020 NA
1 AUD = ` 56.30
17
15
62
Dec 31, 2020 NA
Dec 31, 2020 NA
1 SEK = ` 8.94
1 EUR = ` 89.74
Dec 31, 2020
Dec 31, 2020
Jan 01,
2018
Jun 2,
2015
1 AED = ` 19.90
2
8
1
53
13
138
70
(20)
52
58
87
41
30
30
83
49
71
14
43
25
18
(Extero)(13)
Dec 31, 2020 NA
Infy Consulting B.V.(3) Dec 31, 2020 NA
Mar 31, 2021 NA
Dec 31, 2020
Mar 5,
2015
1 USD = ` 73.07
15
145
174
1 SEK = ` 8.94
1 EUR = ` 89.74
1 GBP =
` 100.75
1 USD = ` 73.07
4
1
–
–
(22)
23
25
49
13
31
387
692
305
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
250
224
210
190
173
162
147
144
136
125
119
119
99
85
75
71
67
65
64
(38)
273
33
3
9
11
18
(27)
(37)
19
9
19
15
(3)
(19)
–
12
5
1
(1)
44
(37)
100.00
229
75.00
5
2
5
1
5
–
–
–
3
–
4
–
28
100.00
1
75.00
4
99.99
10
100.00
13
99.99
(27)
100.00
(37)
19
99.99
100.00
6
100.00
19
11
100.00
75.00
(3)
100.00
88
(107)
100.00
–
3
1
–
–
9
4
1
100.00
100.00
100.00
100.00
Name of the subsidiary
Financial period
ended
Date of
acquisition
Exchange rate /
reporting currency
Share
capital
Reserves
and surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss) before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss) after
taxation(1)
% of
shareholding
4
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Sl.
no.
36
37
38
39
Simplus Australia Pty
Ltd(15)
Infosys Consulting
Pte Ltd.
Infosys Consulting
(Belgium) NV(16)
Infosys Consulting
SAS(3)
Jan 31, 2021 NA
1 AUD = ` 55.77
18
(41)
25
Dec 31, 2020 NA
1 SGD = ` 55.26
1,374
(59) 2,048
Dec 31, 2020 NA
1 EUR = ` 89.74
3
Dec 31, 2020 NA
1 EUR = ` 89.74
29
40 Kaleidoscope
Animations, Inc.(17)
Dec 31, 2020
Oct 9,
2020
41 Fluido Norway A/S(13) Dec 31, 2020 NA
42 GuideVision, s.r.o.(18)
Dec 31, 2020
Oct 1,
2020
1 USD = ` 73.07
1 NOK = ` 8.56
1 CZK = ` 3.43
43
Simplus Philippines,
Inc.(19)
44 Fluido Denmark
Jan 31, 2021 NA
1 PHP = ` 1.52
–
–
–
1
Dec 31, 2020 NA
Dec 31, 2020 NA
Dec 31, 2020 NA
Dec 31, 2020 NA
1 DKK = ` 12.06
1 CLP = ` 0.10
1 USD = ` 73.07
1 USD = ` 73.07
3
7
2
136
(18)
(16)
42
8
25
28
56
27
20
67
4
22
(1)
2
16
(90)
17
12
32
62
A/S(13)
Infosys Chile SpA
45
46 Blue Acorn LLC(20)
iCiDIGITAL LLC(21)
47
Infosys Consulting
48
(Shanghai) Co.
Ltd(3)(22)
Skava Systems
Pvt. Ltd.(22)
Infosys Consulting
S.R.L.(3)
Infosys Fluido UK.,
Ltd. (formerly known
as Simplus U.K., Ltd)
(13)(23)
50
51
49
52
Infosys Luxembourg
S.a.r.l
SureSource LLC(20)
53
Panaya GmbH(7)
54
55 Fluido Slovakia
s.r.o(13)
56 GuideVision
UK Ltd(24)
Dec 31, 2020 NA
1 RMB = ` 11.22
58
(58)
8
Mar 31, 2021
Jun 2,
2015
INR
–
76
88
Dec 31, 2020 NA
1 ARS = ` 0.87
10
(5)
19
Dec 31, 2020 NA
1 GBP = ` 99.82
4
(3)
Mar 31, 2021 NA
Dec 31, 2020 NA
Dec 31, 2020 NA
1 EUR = ` 85.75
1 USD = ` 73.07
1 EUR = ` 89.74
17
236
–
(13)
(243)
(1)
Dec 31, 2020 NA
1 EUR = ` 89.74
Dec 31, 2020 NA
1 GBP = ` 99.82
1
–
5
5
9
32
22
74
7
24
48
733
40
15
14
19
47
17
15
3
14
16
8
12
14
8
28
29
75
1
19
–
–
–
–
–
–
–
–
–
–
–
–
–
76
–
–
–
–
–
–
–
61
56
54
45
45
43
36
34
33
26
24
24
21
19
17
15
16
14
8
7
7
(6)
56
6
4
5
5
2
2
4
4
3
1
186
4
(3)
(5)
(12)
(1)
–
2
–
–
–
–
1
1
1
–
2
2
–
–
–
–
3
(6)
100.00
56
100.00
6
3
4
4
2
–
2
4
3
1
99.90
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
186
100.00
1
100.00
(2)
(1)
100.00
–
–
–
–
–
–
(5)
100.00
(12)
(1)
–
2
–
100.00
100.00
100.00
100.00
100.00
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2
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-
2
1
A
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3
Name of the subsidiary
Sl.
no.
Financial period
ended
Date of
acquisition
Exchange rate /
reporting currency
Share
capital
Reserves
and surplus
Total
assets
57 Mediotype LLC(25)
58 GuideVision
Dec 31, 2020 NA
1 USD = ` 73.07
52
(35)
21
Total liabilities
(excluding
share capital
and reserves
and surplus)
4
–
1
–
–
–
–
–
–
1
–
5
1
4
(4)
–
(5)
2
(1)
8
7
12
4
3
1
2
1
(4)
–
13
13
2
–
121
1
59
Magyarország Kft.(24) Dec 31, 2020 NA
Infosys Austria
GmbH
60 Kaleidoscope
Dec 31, 2020 NA
1 HUF = ` 0.25
1 EUR = ` 89.74
Prototyping LLC(26)
Dec 31, 2020 NA
1 USD = ` 73.07
61 GuideVision
Deutschland
GmbH(24)
62 GuideVision Suomi
Dec 31, 2020 NA
1 EUR = ` 89.74
Oy(24)
Dec 31, 2020 NA
1 EUR = ` 89.74
Dec 31, 2020 NA
1 PLN = ` 19.7
Dec 31, 2020 NA
Dec 31, 2020 NA
1 CZK = ` 3.43
1 EUR = ` 89.74
64
63 GuideVision Polska
SP. Z O.O.(24)
Infosys Consulting
s.r.o. v likvidaci
(formerly Infosys
Consulting s.r.o.)(3)(22)
Stater XXL B.V.(4)
Infosys Fluido
Ireland, Ltd.(formerly
known as Simplus
Ireland, Ltd)(13)(23)
65
66
Dec 31, 2020 NA
67 Brilliant Basics
Holdings Limited
68 WongDoody Holding
Mar 31, 2021
69
70
71
72
73
74
Dec 31, 2020
Dec 31, 2020 NA
Company Inc.
Infosys Americas Inc. Mar 31, 2021 NA
Infosys Nova
Holdings LLC.
(Infosys Nova)
Infosys Consulting
Holding AG
Infosys Arabia
Limited(27)
Stater Participations
B.V.(4)
Sqware Peg Digital
Pty Ltd(15)
Dec 31, 2020 NA
Dec 31, 2020 NA
Jan 31, 2021 NA
Dec 31, 2020
1 EUR = ` 89.74
1 GBP =
` 100.75
Sep 8,
2017
May 22,
2018
1 USD = ` 73.07
1 USD = ` 73.11
32
1
Oct 22,
2012
1 USD = ` 73.07
2,649
(11) 2,721
1 CHF = ` 82.93
162
202
517
1 SAR = ` 19.48
1 EUR = ` 89.74
1 AUD = ` 55.77
3
–
–
–
3
(266)
91
357
–
–
–
Investments
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
–
–
–
Turnover(1)
(Includes
inter-
company
transactions)
7
5
4
4
3
2
2
1
1
1
–
–
–
–
–
–
–
–
Profit /
(Loss) before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss) after
taxation(1)
% of
shareholding
4
–
(2)
2
–
–
(1)
–
–
(1)
–
1
–
81
(14)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6)
–
–
–
–
–
–
4
–
100.00
100.00
(2)
100.00
2
100.00
–
–
100.00
100.00
(1)
100.00
–
–
100.00
75.00
(1)
100.00
–
7
–
100.00
100.00
100.00
81
100.00
(14)
100.00
–
–
–
70.00
75.00
100.00
3
5
8
8
3
6
–
2
3
–
87
–
83
153
–
Sl.
no.
75
76
77
Name of the subsidiary
Financial period
ended
Date of
acquisition
Exchange rate /
reporting currency
Share
capital
Reserves
and surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss) before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss) after
taxation(1)
% of
shareholding
Simplus North
America Inc.(19)
Simplus ANZ Pty
Ltd.(19)
Simplus Europe,
Ltd.(19)
Jan 31, 2021 NA
1 USD = ` 72.96
Jan 31, 2021 NA
1 AUD = ` 55.77
Dec 31, 2020 NA
1 GBP = ` 99.82
78 Beringer Commerce
Inc.(28)
Dec 31, 2020
79 Beringer Capital
Digital Group Inc.(28) Dec 31, 2020
Oct 27,
2020
Oct 27,
2020
1 USD = ` 73.07
1 USD = ` 73.07
–
–
–
6
2
81
80 Beringer Commerce
Holdings LLC(25)
Infosys South Africa
(Pty) Ltd(8)
Infosys Limited
Bulgaria EOOD(29)
Simply Commerce
LLC(20)
82
83
Dec 31, 2020 NA
1 USD = ` 73.07
390
Dec 31, 2020 NA
1 ZAR = ` 4.97
Dec 31, 2020 NA
1 BGN = ` 45.88
Dec 31, 2020 NA
1 USD = ` 73.07
–
2
–
–
–
–
–
–
–
437
443
143
145
–
–
–
–
390
–
2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
(1) Converted at monthly average exchange rates
(2) Wholly-owned subsidiary of Infosys BPM Limited
(3) Wholly-owned subsidiary of Infosys Consulting Holding AG
(4) Wholly-owned subsidiary of Stater N.V.
(5) Majority-owned and controlled subsidiary of Infosys Consulting Pte Ltd.
(6) Wholly-owned subsidiary of Infosys Nova Holdings LLC.
(7) Wholly-owned subsidiary of Panaya Inc.
(8) Wholly-owned subsidiary of Infosys Consulting Pte Ltd.
(9) Majority-owned and controlled subsidiary of Stater Participations B.V.
(10) On December 29, 2020, Stater Participations B.V. acquired non-controlling interest of
28.01% voting interests in Stater Belgium N.V./S.A.
(11) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(12) Liquidated effective March 9, 2021
(13) Wholly-owned subsidiary of Fluido Oy
(14) Wholly-owned subsidiary of Brilliant Basics Holdings Limited
(15) Wholly-owned subsidiary of Simplus ANZ Pty Ltd.
(16) Majority-owned and controlled subsidiaries of Infosys Consulting Holding AG
(17) On October 9, 2020, Infosys Nova Holdings LLC. acquired 100% voting interest in Kaleidoscope Animations, Inc.
(18) On October 1, 2020, Infy Consulting Company Limited acquired 100% voting interests in GuideVision, s.r.o.
(19) Wholly-owned subsidiary of Outbox Systems Inc.
(20) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(21) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(22) Under liquidation
(23) On June 1, 2020, Fluido Oy acquired 100% voting interests in Infosys Fluido UK, Ltd (formerly known as Simplus U.K.,
Ltd) and Infosys Fluido Ireland, Ltd.(formerly known as Simplus Ireland, Ltd) from Simplus Europe, Ltd
(24) Wholly-owned subsidiary of GuideVision, s.r.o.
(25) Wholly-owned subsidiary of Beringer Commerce Inc.
(26) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(27) Majority-owned and controlled subsidiary of Infosys Limited
(28) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned subsidiary of Infosys Limited, acquired 100% voting
interest in Beringer Commerce Inc and Beringer Capital Digital Group Inc.
(29) Incorporated effective September 11, 2020
(30) Reporting period changed from December to March in the current year.
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2
1
Notes:
1. Investments exclude investments in subsidiaries.
2. Proposed dividend from any of the subsidiaries is nil.
3. Infosys Canada Public Services Inc, a wholly-owned subsidiary of Infosys Public Services Inc., was incorporated effective November 27, 2018 and is yet to commence operations.
4. Reserve and surplus includes other comprehensive income and securities premium.
5. Brilliant Basics (MENA) DMCC, a wholly-owned subsidiary of Brilliant Basics Holdings Limited, was liquidated effective July 17, 2020.
6. Infosys Consulting Sp. z.o.o merged with Infosys Poland Sp. z.o.o, effective October 21, 2020.
7. Lodestone Management Consultants Portugal, Unipessoal, Lda, a wholly-owned subsidiary of Infosys Consulting Holding AG, was liquidated effective November 19, 2020.
8. Infosys BPM UK Limited, a wholly-owned subsidiary of Infosys BPM Ltd, was incorporated effective December 9, 2020 and is yet to commence operations.
9. Fluido Newco AB merged into Fluido Sweden AB (Extero), effective December 18, 2020.
10. Stater Deutschland Verwaltungs-GmbH and Stater Deutschland GmbH & Co. KG merged into Stater Duitsland B.V., effective December 18, 2020.
11. Stater Duitsland B.V. merged with Stater N.V., effective December 23, 2020.
12. Infosys Turkey Bilgi Teknolojikeri Limited Sirketi, a wholly-owned subsidiary of Infosys Limited, was incorporated on December 30, 2020 and is yet to commence operations.
13. Infosys CIS LLC, a wholly-owned subsidiary of Infosys Limited, was liquidated effective January 28, 2021.
14. Infosys Germany Holding Gmbh, a wholly-owned subsidiary of Infosys Limited, was incorporated on March 23, 2021.
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and
Managing Director
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
D. Sundaram
Director
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bengaluru
April 14, 2021
A.G.S. Manikantha
Company Secretary
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Annexure 2 – Particulars of contracts / arrangements made with related parties
[Pursuant to Clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013, and Rule 8(2) of the Companies (Accounts) Rules, 2014 – AOC-2]
This Form pertains to the disclosure of particulars of contracts / arrangements entered into by the Company with related
parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013, including certain arm’s length transactions
under third proviso thereto.
Details of contracts or arrangements or transactions not at arm’s length basis
There were no contracts or arrangements or transactions entered into during the year ended March 31, 2021, which were not
at arm’s length basis.
Details of material contracts or arrangement or transactions at arm’s length basis
There were no material contracts or arrangements or transactions entered into during the year ended March 31, 2021.
Bengaluru
April 14, 2021
for and on behalf of the Board of Directors
Sd/-
Nandan M. Nilekani
Chairman
Sd/-
Salil Parekh
Chief Executive Officer and
Managing Director
46 | Annexures to the Board’s report
Infosys Annual Report 2020-21
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Annexure 3 – Particulars of employees
We are a leading provider of consulting, technology, outsourcing and next-generation digital services. We enable clients across more than 50 countries to outperform their
competition and stay ahead of the innovation curve. The remuneration and perquisites provided to our employees, including that of the Management, are on par with industry
benchmarks. The nomination and remuneration committee continuously reviews the compensation of our CEO, COO and other Key Managerial Personnel (KMP) to align both
the short-term and long-term business objectives of the Company and to link compensation with the achievement of goals.
The details of remuneration to directors, KMP and other employees are in compliance with Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014. In accordance with the requirements, tables 3(a) and 3(b) include the perquisite value of stock incentives at the time of their exercise and do not include
the value of the stock incentives at the time of grant.
The increase in remuneration for the below-mentioned executive directors and KMP in fiscal 2021 as compared to fiscal 2020 is primarily on account of increase in perquisite
value of stock incentives granted in previous years and exercised during the year and on account of increase in performance-based variable pay. The increase in perquisite value
of stock incentives exercised during the year also includes the impact of share price increase. The table below additionally includes the % increase in remuneration excluding
perquisite value of stock incentives exercised during the year.
Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
3(a) Remuneration details of directors and KMP
Name
Title
Director
Identification
Number (DIN)
Nandan M. Nilekani(2)
00041245
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine(3)
Bobby Parikh(4)
00347229
00016304
08177291
08733837
00019437
Chitra Nayak(5)
09101763
Dr. Punita Kumar-Sinha(6) 05229262
D.N. Prahlad(7)
00504146
Salil Parekh(8)
01876159
U.B. Pravin Rao(9)
06782450
Nilanjan Roy(10)
A.G.S. Manikantha(11)
NA
NA
MRE – Median Remuneration of Employees
Non-executive and Non-
independent Chairman
Lead Independent Director
Independent Director
Independent Director
Independent Director
Additional and
Independent Director
Additional and
Independent Director
Independent Director
Independent Director
Chief Executive Officer and
Managing Director
Chief Operating Officer and
Whole-time Director
Chief Financial Officer
Company Secretary
% increase of
remuneration in fiscal
2021 as compared to
fiscal 2020(1)
–
(3)
10
(25)
NA
NA
NA
NA
NA
45
63
13
22
Ratio of
remuneration
to MRE(1)
–
15
17
14
NA
NA
NA
NA
NA
689
240
84
15
% increase of remuneration in fiscal
2021 as compared to fiscal 2020
(excluding perquisite value of stock
incentive exercised during the year)
–
Ratio of remuneration to
MRE (excluding perquisite
value of stock incentive
exercised during the year)
–
No. of RSUs
granted in
fiscal 2021
–
–
–
–
–
–
–
–
–
3,67,173
15
17
14
NA
NA
NA
NA
NA
259
131
59,374
66
11
37,012
2,000
(3)
10
(25)
NA
NA
NA
NA
NA
8
14
(12)
13
Notes: The remuneration details in the above table pertain to directors and KMP as required under the Companies Act, 2013.
The details in the above table are on accrual basis.
The % increase of remuneration is provided only for those directors and KMP who have drawn remuneration from the Company for full fiscal 2021 and full fiscal 2020. The ratio of remuneration to MRE is
provided only for those directors and KMP who have drawn remuneration from the Company for the full fiscal 2021.
There has been no change in the annual compensation in fiscal 2021 as compared to fiscal 2020. The increase in remuneration for the executive directors and KMP in fiscal 2021 as compared to fiscal 2020 is
primarily on account of increase in perquisite value of stock incentives granted in previous years and exercised during the year and on account of increase in performance-based variable pay.
(1) Remuneration to KMP includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the Income-tax
Act, 1961. Accordingly, the value of stock incentives granted during the period is not included. The number of stock incentives granted in fiscal 2021 is mentioned in the above table. Independent directors are
not entitled to any stock incentives.
(2) Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.
(3) Uri Levine was appointed as an independent director effective April 20, 2020.
(4) Bobby Parikh was appointed as an additional and independent director effective July 15, 2020.
(5) Chitra Nayak was appointed as an additional and independent director effective March 25, 2021.
(6) Dr. Punita Kumar-Sinha retired as an independent director effective January 13, 2021.
(7) D.N. Prahlad resigned as an independent director effective April 20, 2020.
(8) a) Remuneration includes ` 30.99 crore pertaining to exercise of 2,92,991 Restricted Stock Units (RSUs) under the 2015 Plan and 1,00,604 RSUs under the 2019 Plan during fiscal 2021.
b) On the recommendation of the nomination and remuneration committee, in accordance with the terms of his employment agreement, the Board approved
the grant of 1,92,964 performance-based RSUs under the 2015 Plan effective May 2, 2020
i)
ii) the grant of 25,775 annual time-based RSUs for fiscal 2021 under the 2015 Plan effective February 1, 2021
iii) the grant of 1,48,434 performance-based RSUs for fiscal 2021 under the 2019 Plan effective May 2, 2020. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid
out in the 2019 Plan.
These RSUs will vest in line with the current employment agreement.
c) The Board, on April 14, 2021, based on the recommendations of the nomination and remuneration committee, in accordance with the terms of his employment agreement, approved the grant of performance-based
RSUs of fair value of ` 13 crore for fiscal 2022 under the 2015 Plan. The committee also approved an annual grant of performance-based RSUs of fair value of ` 10 crore under the 2019 Plan. The RSUs under
both the Plans will be granted effective May 2, 2021 and the number of RSUs will be calculated based on the market price at the close of trading on May 2, 2021.
(9) a) Remuneration includes ` 7.87 crore pertaining to the exercise of 45,349 RSUs under the 2015 Plan and 40,241 RSUs under the 2019 Plan during fiscal 2021.
b) On the recommendations of the nomination and remuneration committee, in accordance with the terms of his employment agreement, the Board approved the grant of 59,374 performance-based RSUs for
fiscal 2021 under the 2019 Plan effective May 2, 2020. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
(10) a) Remuneration includes ` 1.32 crore on account of exercise of 14,347 RSUs under the 2015 Plan during fiscal 2021.
b) On the recommendations of the nomination and remuneration committee, the Board approved
i)
the grant of 11,133 performance-based RSUs under the 2015 Plan effective May 2, 2020
ii) the grant of 13,879 annual time-based RSUs under the 2015 Plan effective February 1, 2021
iii) the grant of 12,000 performance-based RSUs under the 2019 Plan effective March 31, 2021. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the
2019 Plan.
These RSUs will vest in line with the RSU award agreement.
c) The Board, on April 14, 2021, based on the recommendations of the nomination and remuneration committee, in accordance with the terms of his employment agreement, approved the grant of annual
performance-based RSUs of fair value of ` 0.75 crore under the 2015 Plan. The RSUs will be granted effective May 2, 2021 and the number of RSUs will be calculated based on the market price at the close
of trading on May 2, 2021.
(11) a) Remuneration includes ` 0.30 crore on account of exercise of 2,500 RSUs under the 2015 Plan during fiscal 2021.
b) On the recommendations of the nomination and remuneration committee, the Board approved the grant of 2,000 performance-based RSUs under the 2019 Plan effective March 31, 2021. These RSUs will
vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
The MRE was ` 7,21,314 and ` 6,82,906 in fiscal 2021 and fiscal 2020, respectively. The increase in MRE in fiscal 2021, as compared to fiscal 2020, is 5.6%.
The average annual increase in the salaries of employees was 6% in India, after accounting for promotions and other event-based compensation revisions. Employees outside
India received a wage increase in line with the market trends in the respective countries.
The overall wages at leadership levels remained constant and there were no promotions during fiscal 2021 at leadership level. The KMP have not received any compensation
increase in fiscal 2021. However, the KMP remuneration presented in this report shows a higher remuneration for fiscal 2021 as compared to fiscal 2020 primarily on account
of the increase in perquisite value of stock incentives granted in previous years but exercised during the year and on account of increase in performance-based variable pay.
The increase in perquisite value of stock incentives exercised during the year also includes the impact of share price increase.
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2
0
-
2
1
A
n
n
e
x
u
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e
s
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o
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e
B
o
a
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’
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o
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|
4
9
3(b) Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Top 10 employees in terms of remuneration drawn during the year
Employee name
Designation
Age
Salil Parekh
Mohit Joshi
Ravi Kumar S.
CEO & MD
President
President and Deputy
Chief Operating Officer
COO & WTD
Segment Head – CPG,
Logistics & Retail
U.B. Pravin Rao
Karmesh Gul
Vaswani
Inderpreet Sawhney Group General Counsel
Mark Livingston
Ajay Vij
Andrew Groth
Charles Salameh
and Chief Compliance
Officer
Global Head –
Management Consulting
Services
Industry Head – Financial
Services, Healthcare,
Insurance and Life Science
Industry Head – Financial
Services, Healthcare,
Insurance and Life Science
Head – Account
Expansion
Educational
qualification
B.Tech, ME
56
BA(H), MBA 46
49
BE, PGD
Experience
(in years)
33
24
27
59
49
36
28
BE
BE
BA LLB,
LLM
Date of joining
Location
Jan 2, 2018
Dec 7, 2000
Nov 8, 2002
Aug 4, 1986
Mar 3, 2003
India
UK
US
India
UK
Remuneration in
fiscal 2021 (in `)(1)
49,67,87,532(3)
34,82,00,226(4)
27,54,29,245(5)
17,33,35,339(6)
14,05,49,424(7)
56
30
Jul 3, 2017
US
12,51,65,357(8)
BS
65
35
Dec 17, 2018 US
11,45,43,676(9)
No. of RSUs granted
in fiscal 2021(2)
Previous employment and
designation
3,67,173 Capgemini, Director General
1,22,350 ABN AMRO Bank, Manager
1,13,050 Sapient Corporation,
Director
59,374 IISC, Trainee
45,500 Accenture, Senior Manager
45,100 Wipro, Senior Vice President
and General Counsel
30,750 EVP and Global Consulting
Leader, Cognizant
BE, MBA
48
25
Feb 1, 2015
UK
10,76,63,972(10)
21,500 IBM Global Business
MBA
56
38
Jan 18, 2010
Australia 10,45,19,686(11)
BS, MBA
56
32
Sep 17, 2018 Canada
9,91,45,105(12)
Services, Partner – Financial
Services
21,850 Genpact, Senior Vice
President – Business
Development – EMEA
23,300 DXC Technology, VP GM
Global Strategic Pursuits
Notes: The details in the above table are on accrual basis for better comparability with the KMP remuneration disclosures included in other sections of this Annual Report.
The aforementioned employees have / had permanent employment contracts with the Company.
Employees mentioned above are neither relatives of any directors of the Company, nor hold 2% or more of the paid-up equity share capital of the Company as per Clause (iii) of sub-rule (2) of Rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
For employees based overseas, average exchange rates have been used for conversion to INR.
(1) Includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the Income-tax Act, 1961 or relevant
overseas tax regulations as applicable. Accordingly, the value of stock incentives granted during the period is not included. The number of stock incentives granted in fiscal 2021 is included in the table above.
(2) Includes equity-settled and cash-settled RSUs under the 2015 and 2019 Plans.
(3) Remuneration includes ` 30.99 crore on account of the exercise of 2,92,991 RSUs under the 2015 Plan and 1,00,604 under the 2019 Plan during fiscal 2021.
(4) Remuneration includes ` 19.71 crore on account of exercise of 1,62,914 RSUs under the 2015 Plan and 12,500 RSUs under the 2019 Plan during fiscal 2021.
(5) Remuneration includes ` 17.03 crore on account of exercise of 1,02,599 RSUs under the 2015 Plan, 26,176 cash-settled RSUs under the 2015 Plan and 12,500 RSUs under the 2019 Plan during fiscal 2021.
(6) Remuneration includes ` 7.87 crore on account of exercise of 45,349 RSUs under the 2015 Plan and 40,241 RSUs under the 2019 Plan during fiscal 2021.
(7) Remuneration includes ` 6.23 crore on account of exercise of 48,950 RSUs under the 2015 Plan and 6,250 RSUs under the 2019 Plan during fiscal 2021.
(8) Remuneration includes ` 4.46 crore on account of exercise of 22,200 RSUs under the 2015 Plan, 9,724 cash-settled RSUs under the 2015 Plan and 6,250 RSUs under the 2019 Plan during fiscal 2021.
(9) Remuneration includes ` 4.52 crore on account of exercise of 32,587 RSUs under the 2015 Plan and 3,750 RSUs under the 2019 Plan during fiscal 2021.
(10) Remuneration includes ` 4.90 crore on account of exercise of 30,826 RSUs under the 2015 Plan, 29,924 ESOPs under the 2015 Plan and 3,750 RSUs under the 2019 Plan during fiscal 2021.
(11) Remuneration includes ` 4.79 crore on account of exercise of 22,412 RSUs under the 2015 Plan, 34,800 ESOPs under the 2015 Plan and 4,500 RSUs under the 2019 Plan during fiscal 2021.
(12) Remuneration includes ` 3.58 crore on account of exercise of 25,925 RSUs under the 2015 Plan and 2,500 RSUs under the 2019 Plan during fiscal 2021.
Annexure 4: Independent Auditor’s certificate on corporate governance
REF: IL/2021-22/02
TO
THE MEMBERS OF INFOSYS LIMITED
1. This certificate is issued in accordance with the terms of our engagement letter reference no.IL/20-21/02 dated July 3, 2020.
2. We, Deloitte Haskins & Sells LLP, Chartered Accountants, the Statutory Auditors of Infosys Limited (“the Company”), have
examined the compliance of conditions of Corporate Governance by the Company, for the year ended on March 31, 2021,
as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”).
Managements’ Responsibility
3. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes
the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions
of the Corporate Governance stipulated in Listing Regulations.
Auditor’s Responsibility:
4. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the
financial statements of the Company.
5. We have examined the books of account and other relevant records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
6. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on
Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India (the “ICAI”), the
Standards on Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose
of this certificate and as per the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which
requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
Engagements.
Opinion
8. Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V
of the Listing Regulations during the year ended March 31, 2021.
9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s registration No. 117366W/W-100018)
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 21039826AAAACL4417
50 | Annexures to the Board’s report
Infosys Annual Report 2020-21
Annexure 5 – Secretarial audit report for the financial year ended March 31, 2021
Form No. MR-3
(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule no. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)
To,
The Members,
Infosys Limited,
Electronics City, Hosur Road
Bengaluru–560100
Karnataka, India
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by INFOSYS LIMITED (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided
me a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by
the Company and also the information provided by the Company, its officers, agents and authorized representatives during the
conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering the financial
year ended on March 31, 2021, complied with the statutory provisions listed hereunder and also that the Company has proper
Board-processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for
the financial year ended on March 31, 2021 and made available to me, according to the provisions of:
i. The Companies Act, 2013 (“the Act”) and the rules made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (“SCRA”) and the rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment and Overseas Direct Investment;
v. The following regulations and guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (“SEBI Act”):
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
(d) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
vi. Other laws applicable specifically to the Company, namely:
(a) The Information Technology Act, 2000 and the rules made thereunder;
(b) The Special Economic Zones Act, 2005 and the rules made thereunder;
(c) Software Technology Parks of India rules and regulations;
(d) The Indian Copy Rights Act, 1957;
(e) The Patents Act, 1970; and
(f) The Trade Marks Act, 1999.
I have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company
Secretaries of India.
I report that, during the year under review, the Company has complied with the provisions of the Acts, Rules, Regulations,
Guidelines and Standards mentioned above.
I further report that, there were no events / actions in pursuance of:
a) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
b) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
c) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client;
d) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and
e) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018
requiring compliance thereof by the Company during the audit period.
I further report that, the compliance by the Company of applicable financial laws such as direct and indirect tax laws and
maintenance of financial records and books of accounts have not been reviewed in this audit since the same have been subject
to review by the statutory financial auditors, tax auditors, and other designated professionals.
I further report that, the Board of Directors of the Company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place
during the period under review were carried out in compliance with the provisions of the Act.
Infosys Annual Report 2020-21
Annexures to the Board’s report | 51
Adequate notice is given to all directors to schedule the Board meetings, agenda and detailed notes on agenda were sent at
least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at the meeting.
As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous
and no dissenting views have been recorded.
I further report that, based on the information provided and the representation made by the Company and also on the review
of the compliance certificates / reports taken on record by the Board of Directors of the Company, in my opinion there are
adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and
ensure compliance with applicable laws, rules, regulations and guidelines.
I report further that, during the audit period there were no other specific events / actions in pursuance of the above referred
laws, rules, regulations, guidelines, etc. having a major bearing on the Company’s affairs.
Place: Bengaluru
Date: April 14, 2021
This report is to be read with Annexure A which forms an integral part of this report.
Sd/-
P.G. Hegde
Hegde & Hegde
Company Secretaries
FCS:1325 / C.P.No: 640
UDIN: F001325C000030961
Annexure A
To,
The Members
Infosys Limited
Bengaluru
My report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the Management of the Company. My responsibility is to express
an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. I believe that the process and practices I followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, I have obtained the Management Representation about the compliance of laws, rules and regulations
and happening of events etc.
5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility
of the Management. My examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the Management has conducted the affairs of the Company.
7. Due to prevailing circumstance of COVID-19 pandemic, the audit was conducted based on the verification of the Company’s
books, papers, minutes books, forms and returns filed, documents and other records furnished by / obtained from
the Company electronically and also the information provided by the Company and its officers by audio and visual means.
Place: Bengaluru
Date: April 14, 2021
Sd/-
P.G. Hegde
Hegde & Hegde
Company Secretaries
FCS:1325 / C.P.No: 640
UDIN: F001325C000030961
52 | Annexures to the Board’s report
Infosys Annual Report 2020-21
Annexure 6 – Annual report on CSR activities
[Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.]
1. Brief outline on CSR Policy of the Company
Over the years, we have been focusing on sustainable
business practices encompassing economic, environmental
and social imperatives that not only cover business, but
also the communities around us. We focus on our social
and environmental responsibilities to fulfill the needs and
expectations of the communities around us. Our Corporate
Social Responsibility (“CSR”) is not limited to philanthropy,
but encompasses holistic community development,
institution-building and sustainability-related initiatives.
Our CSR Policy aims to provide a dedicated approach to
community development in the areas of improving healthcare
infrastructure, supporting primary education, rehabilitating
the destitute, abandoned women and children, preserving
Indian art and culture, removing malnutrition, rural
development, and contribute to the sustainable development
of society and environment, and to make our planet a better
place for future generations.
Objectives
Our broad objectives, as stated in our CSR Policy, include:
• Making a positive impact on society through economic
development and reduction of our resource footprint
• Taking responsibility for the actions of the Company while
also encouraging a positive impact through supporting
causes concerning the environment, communities and
our stakeholders
Focus areas
• Promoting healthcare including preventive healthcare
• Eradicating hunger, poverty and sanitation programs
• Destitute care and rehabilitation
• Environmental sustainability and ecological balance
• Promoting education, enhancing vocational skills
• Rural development
• Protection of national heritage, restoration of historical
sites, promotion of art and culture
CSR activities
Infosys Limited (“Infosys” or “the Company”) has been an
early adopter of CSR initiatives. Infosys undertakes CSR
initiatives both directly as well as through Infosys Foundation
(“the Foundation”). The Foundation was established in 1996
with a vision to boosting our CSR initiatives. This was long
before the Companies Act, 2013 mandated CSR activities to
be undertaken by the Company.
Key highlights of the activities of the Foundation during the
year are listed below, and the details of these projects are
given in the Corporate governance report that forms part of
this Annual Report.
• Supported COVID-19 relief measures – Created a
COVID-19 hospital and a special ward in another hospital
• Supported India Foundation for the Arts for a series of
projects to help artists
• Constructed a Sainik Sadan at Bhubaneswar for
ex-servicemen
• Supported a youth enablement program for the Society
for Education Action and Research in Community
Health (SEARCH)
The detailed report is available on the Infosys Foundation
website, at https://www.infosys.com/infosys-foundation
2. Composition of CSR committee
The CSR committee of the Board is responsible for overseeing the execution of the Company’s CSR Policy. The CSR committee
comprises two independent directors, and the COO and Whole-time Director as at the end of fiscal 2021.
Name of the director
Sl
no.
Designation / nature of
directorship
Number of meetings of CSR
committee held during the
year
Number of meetings of CSR
committee attended during
the year
1.
Kiran Mazumdar-Shaw
2. U.B. Pravin Rao
3.
Chitra Nayak(1)
4.
Salil Parekh(2)
5. Dr. Punita Kumar-Sinha(3)
Lead Independent Director,
chairperson of CSR committee
COO & Whole-time Director,
member of CSR committee
Independent Director, member
of CSR committee
CEO & MD, member of CSR
committee
Independent Director, member
of CSR committee
4
4
–
–
4
4
4
–
–
4
(1) Chitra Nayak was appointed as a member of the committee effective March 25, 2021.
(2) Salil Parekh was appointed as a member of the committee effective January 14, 2021 and ceased to be a member of the committee effective March 25, 2021.
(3) Dr. Punita Kumar-Sinha ceased to be a member of the committee due to her retirement as an independent director effective January 13, 2021.
Infosys Annual Report 2020-21
Annexures to the Board’s report | 53
3. Web links where composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed
on the website of the company:
• The composition of the CSR committee is available on our website, at https://www.infosys.com/investors/corporate-
governance/documents/committee-composition.pdf
• The Committee, with the approval of the Board, has adopted the CSR Policy as required under Section 135 of the Companies
Act, 2013. The CSR Policy of the Company is available on our website, at https://www.infosys.com/investors/corporate-
governance/documents/corporate-social-responsibility-policy.pdf
• The Company has also adopted the CSR committee charter, which is available on our website, at https://www.infosys.com/
investors/corporate-governance/documents/corporate-social-responsibility-committee-charter.pdf
• The Board, based on the recommendation of the CSR committee, at its meeting held on April 14, 2021, has approved the
annual action plan / projects for fiscal 2022, the details of which are available on our website, at https://www.infosys.com/
investors/reports-filings/documents/csr-projects2021.pdf
4. Details of impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, if applicable: The Company has been voluntarily conducting impact
assessments through independent agencies to screen and evaluate select CSR programs. The Company takes cognizance of
sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“CSR Amendment
Rules”). There are no projects undertaken or completed after the effective date of the aforementioned rules for fiscal 2021.
5. Details of the amount available for set-off in pursuance of sub-rule (3) of Rule 7 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and amount required for set-off for the financial year, if any: Nil
6. Average net profit of the Company as per Sec 135(5): ` 18,620 crore
7. a. Two percent of average net profit of the Company as per Section 135(5): ` 372.39 crore
b. Surplus arising out of the CSR projects or programs or activities of the previous financial years: Nil
c. Amount required to be set-off for the financial year, if any: Nil
d. Total CSR obligation for the financial year (7a+7b-7c): ` 372.39 crore
8. (a) CSR amount spent or unspent for the financial year:
Total amount spent for the
financial year(1) (in ` crore)
Amount unspent (in ` crore)
Total amount transferred to Unspent
CSR Account as per Section 135(6)
Amount transferred to any fund specified under
Schedule VII as per second proviso to Section 135(5)
Amount Date of transfer
NA
Nil
Date of transfer Name of the fund
NA
Refer to note
325.32
Amount (in ` cr)
49.52
(1) Includes a sum of ` 84 lakh incurred towards administration overheads
Note: The unspent amount will be transferred to unspent CSR account within 30 days from the end of the financial year, in accordance with the
Companies Act, 2013 read with the CSR Amendment Rules.
54 | Annexures to the Board’s report
Infosys Annual Report 2020-21
(b) Details of CSR amount spent against ongoing projects for the financial year:
Name of the project
Sl.
no.
Local
area (Yes
/ No)
Item from
the list of
activities in
Schedule VII
to the Act
Location of the project
State
District
1 Construction of the
(iii)
Yes
Haryana
Jhajjar
(i), (xii)
No
Pan-India
Pan-India
Project
duration(1)
(in years)
Amount
allocated
for the
project in
fiscal 2021
(in ` crore)
Amount
spent in
the current
financial
year
(in ` crore)
Amount
transferred to
Unspent CSR
Account for the
project as per
Section 135(6)
(in ` crore)
Mode of
implementation
– Direct
(Yes / No)
Mode of implementation
– Through implementing
agency
Name
CSR
registration
number(2)
3
2
41.88
41.88
– No
37.29
37.29
– No
2
800-bed Infosys Vishram
Sadan at the All India
Institute of Medical
Sciences
Facilitating COVID-19
relief efforts, providing
essential medical
equipment and
infrastructure to various
hospitals and frontline
workers, supporting daily
livelihood requirements of
the poor and needy
3 Construction of a 300-bed
hospital block at the
Sri Jayadeva Institute of
Cardiovascular Sciences &
Research
I
n
f
o
s
y
s
A
n
n
u
a
l
R
e
p
o
r
t
2
0
2
0
-
2
1
A
n
n
e
x
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e
s
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o
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e
B
o
a
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d
’
s
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e
p
o
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t
|
5
5
(i), (iii)
Yes
Karnataka
Bengaluru
3
29.76
29.76
– No
4 Construction of the
(i), (iii)
Yes
Maharashtra Mumbai
600-bed Infosys Asha
Nivas dharmashala at the
Tata Memorial Center
5 Construction of a 100-bed
maternal and child care
hospital
6 Construction of a hostel
for 300 girl students at
the Indian Institute of
Information Technology
7 Construction of a school
building at the Chethana
Residential School
(i), (iii)
Yes
Karnataka
Ramanagara
(ii), (iii)
Yes
Karnataka
Dharwad
(ii), (iii)
Yes
Karnataka
Dakshina
Kannada
4
3
3
2
16.60
16.60
– No
10.27
10.27
– No
6.34
6.34
– No
4.53
4.53
– No
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Name of the project
Sl.
no.
Local
area (Yes
/ No)
Item from
the list of
activities in
Schedule VII
to the Act
Location of the project
State
District
Project
duration(1)
(in years)
Amount
allocated
for the
project in
fiscal 2021
(in ` crore)
Amount
spent in
the current
financial
year
(in ` crore)
Amount
transferred to
Unspent CSR
Account for the
project as per
Section 135(6)
(in ` crore)
Mode of
implementation
– Direct
(Yes / No)
Mode of implementation
– Through implementing
agency
Name
CSR
registration
number(2)
8 Construction of a high
school building at the
Ramakrishna Mission
Shivanahalli
9 Construction of a
protection wall at
Cherlopalli Zoo
(ii), (iii)
Yes
Karnataka
Bengaluru
(iv)
No
Andhra
Pradesh
Kurnool
10 Construction of a new,
(v)
Yes
Karnataka
Bengaluru
state-of-the-art museum at
the Art and Photography
Foundation
11 Strengthen research
(ii), (v)
Yes
Maharashtra Pune
activities and train young
scholars in Orientology at
the Bhandarkar Oriental
Research Institute
12 Construction of a Rajya
Sainik Sadan for ex-
servicemen
(vi)
Yes
Odisha
Khordha
13 Construction of Skill
(ii) (iii)
Yes
Karnataka
Tumakuru
Development Training
Centre and other facilities
at the Indian Red Cross
Society
3
4
2
4
3
3
4.42
4.42
– No
4.15
4.15
– No
3.00
3.00
– No
2.25
2.25
– No
1.79
1.79
– No
1.55
1.55
– No
14 Construction of a hostel
(ii), (iii)
Yes
Tamil Nadu Tiruchirappalli 2
1.44
1.44
– No
for girls at the campus
of the Indian Institute of
Information Technology
15 Support the clean-up and
(v)
Yes
Karnataka
Mandya
3
1.25
1.25
– No
restoration of two water
bodies at a heritage site in
Mandya district
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
5
6
|
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t
I
n
f
o
s
y
s
A
n
n
u
a
l
R
e
p
o
r
t
2
0
2
0
-
2
1
Name of the project
Sl.
no.
Local
area (Yes
/ No)
Item from
the list of
activities in
Schedule VII
to the Act
Location of the project
State
District
Project
duration(1)
(in years)
Amount
allocated
for the
project in
fiscal 2021
(in ` crore)
Amount
spent in
the current
financial
year
(in ` crore)
Amount
transferred to
Unspent CSR
Account for the
project as per
Section 135(6)
(in ` crore)
Mode of
implementation
– Direct
(Yes / No)
Mode of implementation
– Through implementing
agency
Name
CSR
registration
number(2)
(iv)
Yes
Karnataka
Mysuru
2
1.12
1.12
– No
16 Construction of a
world-class visitor
and animal-friendly
enclosure for gorillas at Sri
Chamarajendra Zoological
Gardens
17 Conservation and
(v)
No
Uttarakhand Champawat
3
1.00
1.00
– No
restoration of an old
and dilapidated heritage
building at a remote
village
18 Bangalore Metro Rail
Corporation Limited
(BMRCL)
19 Smoke-free kitchen
through installation
of biogas units and
promoting organic farming
(iv)
Yes
Karnataka
Bengaluru
(iv)
Yes
Karnataka
Various
locations
20 Smoke-free kitchen
(iv)
Yes
through the distribution
of high-efficiency biomass
cookstoves
Maharashtra,
Rajasthan
Aurangabad,
Udaipur
21 Construction of a
(ii) (iii)
Yes
Karnataka
Mysuru
multipurpose hall to
be used for training
of vocational skills at
Shaktidhama Trust
4
4
4
4
30.00
30.00
– No
20.21
22.32
– Yes
7.11
7.11
– Yes
0.72
0.72
– No
22 Infosys Headstart – Digital
(ii)
Yes
Karnataka
Bengaluru
3
50.00
0.48
49.52 Yes
Literacy Project
Total
276.69
229.29
49.52
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Limited
Infosys
Limited
NA
NA
Infosys
Foundation
NA
Infosys
Limited
NA
(1) These are 'ongoing projects' as defined in the CSR Amendment Rules The years mentioned include the financial year in which the project was commenced.
(2) CSR registration will be obtained within the prescribed timeline, wherever applicable, as per the CSR Amendment Rules. The requirement does not apply to CSR projects or programs approved prior to April 1, 2021.
I
n
f
o
s
y
s
A
n
n
u
a
l
R
e
p
o
r
t
2
0
2
0
-
2
1
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
’
s
r
e
p
o
r
t
|
5
7
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Name of the project
Sl.
no.
Support the Infosys Prize program
towards contemporary research in the
various branches of science instituted by
Infosys Science Foundation
Aiding flood relief efforts
Item from the list
of activities in
Schedule VII to
the Act
(ii)
(xii)
–
Local
area (Yes
/ No)
Location of the project
State
District
Amount
spent for
the project
(in ` crore)
Mode of
implementation –
Direct (Yes / No)
Mode of implementation – Through
implementing agency
Name
CSR registration number(1)
Yes
Karnataka
Bengaluru
20.00 No
Bihar,
Karnataka,
Odisha, Tamil
Nadu, West
Bengal
Karnataka
Karnataka
Maharashtra
Various locations
12.62 No
Dakshina
Kannada
Various locations
Aurangabad
7.62 No
6.51 No
(vi)
Yes
Delhi
New Delhi
2.00 No
(ii)
(ii)
(ii)
Yes
Karnataka
Bengaluru
1.50 No
Yes
Karnataka
Bengaluru
1.09 No
Yes
Delhi
Delhi
1.07 No
(ii) (iii)
Yes
Maharashtra
Mumbai
3.00 No
(i) (x)
Yes
Delhi
Delhi
2.00 No
Road construction at Mudipu
(x)
Yes
Yes
(ii) (iii)
Provide computers and laptops to
underprivileged students to help with
online learning
Rehabilitation and welfare of army
personnel and disbursal to next-of-kin
of martyrs and those injured in the line
of duty, across the country
Support cutting-edge research in the
basic sciences and mathematics through
the International Centre for Theoretical
Sciences
Aid training and research to help
investigations in the area of cybercrime
Training and placement of Masters of
Public Health graduates within NGOs,
through the Public Health Foundation
of India
Enabling high-quality science output
support to young researchers at the Tata
Institute of Fundamental Research
Equitable and empathetic social services
in primary healthcare in rural and
urban zones through the Public Health
Foundation of India
NA
Infosys
Science
Foundation
Infosys
Foundation
NA
Infosys
Foundation
Infosys
Foundation
NA
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
Infosys
Foundation
Infosys
Foundation
NA
NA
Infosys
Foundation
NA
Infosys
Foundation
NA
5
8
|
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
’
s
r
e
p
o
r
t
I
n
f
o
s
y
s
A
n
n
u
a
l
R
e
p
o
r
t
2
0
2
0
-
2
1
1
2
3
4
5
6
7
8
9
10
Sl.
no.
11
12
13
14
15
16
Name of the project
Rehabilitation and welfare of families of
martyrs and those injured in the line of
duty
Clean drinking water project in a rural
area
Promote path-breaking social innovation
through Aarohan Awards
Construction of a state-of-the-art school
campus at Sri Pratyaksha Charitable
Trust
Conservation and rejuvenation of
Hebbal lake, Mysuru
Projects less than ` 1 crore(2)
Item from the list
of activities in
Schedule VII to
the Act
(vi)
Local
area (Yes
/ No)
Location of the project
State
District
Amount
spent for
the project
(in ` crore)
Mode of
implementation –
Direct (Yes / No)
Mode of implementation – Through
implementing agency
Name
CSR registration number(1)
No
Pan-India
Pan-India
1.87 No
Yes
Yes
No
Yes
No
(i) (x)
(ii)
(ii), (iii)
(iv)
Various
schedule VII
activities
Karnataka
Ramanagara
1.42 No
Karnataka
Bengaluru
1.03 No
Andhra Pradesh Chittoor
2.00 No
Karnataka
Hebbal, Mysuru
21.90 Yes
Pan-India
Pan-India
9.57 No
Infosys
Foundation
NA
Infosys
Foundation
Infosys
Foundation
Infosys
Foundation
Infosys
Limited
Infosys
Foundation
NA
NA
NA
NA
NA
Total
95.19
(1) CSR registration will be obtained within the prescribed timeline, wherever applicable as per CSR Amendment Rules. The requirement does not apply to CSR projects or programs approved prior to April 1, 2021.
(2) Multiple small-scale CSR projects with an outflow of less than ` 1 crore, have been clubbed together
(d) Amount spent in administrative overheads: ` 0.84 crore
(e) Amount spent on impact assessment, if applicable: Not applicable
(f ) Total amount spent for the financial year (8b+8c+8d+8e): ` 325.32 crore
I
n
f
o
s
y
s
A
n
n
u
a
l
R
e
p
o
r
t
2
0
2
0
-
2
1
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
’
s
r
e
p
o
r
t
|
5
9
(g) Details of excess amount for set-off are as follows:
Particulars
2% of average net profit of the Company as per Section 135(5)
Sl.
no.
(i)
(ii) Total amount spent for the financial year
(iii) Excess amount spent for the financial year [(ii)-(i)]
(iv) Surplus arising out of the CSR projects or programs or activities of the previous financial years, if any
(v) Amount available for set-off in succeeding financial years [(iii)-(iv)]
Amount
(in ` crore)
372.39
325.32
NA
Nil
Nil
9. (a) Details of unspent CSR amount for the preceding three financial years: Nil
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): Not
applicable, as the concept of 'ongoing projects' has been introduced in the CSR Amendment Rules, relevant from fiscal
2021. Details of spend on all ongoing projects during fiscal 2021 are covered under 8(b) above.
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired
through CSR spent in the financial year: No capital asset was created / acquired for fiscal 2021 through CSR spend.
Consequent to enactment of the CSR Amendment Rules, the Company intends to transfer its CSR capital assets created
prior to January 2021 to a Company established, in accordance with Section 8 of the Companies Act, 2013, for charitable
purposes within the prescribed period. The transfer will be undertaken upon obtaining the required approvals from
regulatory authorities.
11. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per Section 135(5):
During fiscal 2021, the Company has spent ` 325.32 crore on various projects and transferred ` 49.52 crore to the Unspent
CSR Account. The Company has allocated ` 50 crore for Infosys Headstart, a digital literacy initiative, which is an ongoing
project, and spent ` 0.48 crore in fiscal 2021 towards this initiative. The unspent balance of ` 49.52 crore will be transferred
to the Unspent CSR Account and spent in accordance with the CSR Amendment Rules. Details on Infosys Headstart is
available in the Corporate governance report that forms part of this Annual Report.
Additional information – Global CSR activities
Over and above the requirements of the Companies Act, 2013, Infosys has expanded its CSR footprint globally. The details of
the activities of Infosys Foundation USA in fiscal 2021 are provided in the Corporate governance report. The expenditure made
towards CSR in Australia and through Infosys Foundation USA is as follows:
Focus area
Teacher training
Research and curriculum
Student education and services
Advocacy and awareness
Classroom aids and technology
Operating expenses
Total
Bengaluru
April 14, 2021
Amount (in US$)
2,504,086
774,500
147,375
132,000
30,675
142,835
3,731,471
Sd/-
Kiran Mazumdar-Shaw
Chairperson, CSR Committee
Sd/-
Salil Parekh
Chief Executive Officer and
Managing Director
60 | Annexures to the Board’s report
Infosys Annual Report 2020-21
Annexure 7 – Conservation of energy, research and development, technology absorption, foreign
exchange earnings and outgo
[Particulars pursuant to the Companies (Accounts) Rules, 2014]
Our focused approach on energy efficiency, renewable
energy and carbon offset projects over the years culminated
in Infosys achieving carbon neutrality in fiscal 2020, across
all emissions, as per PAS 2060:2014 standards. We continue
to remain carbon-neutral for fiscal 2021. Our detailed,
independently assured ESG Report will be available at
https://www.infosys.com/sustainability/documents/infosys-
esg-report-2020-21.pdf.
Resource conservation initiatives
Judicious use of resources (mainly energy and water) is necessary
to avoid environmental and socio-economic problems. Resource
conservation is important at all levels to ensure a healthy
environment and equitable distribution in society. At Infosys,
what started as a simple energy metering exercise back in 2008
to identify wastage and opportunities for savings, spiraled
into one of the largest enterprise-level resource conservation
initiative. Super-efficient new buildings, deep retrofits in existing
buildings, smart automation, water management initiatives and
waste management projects have contributed in reducing our
environmental impact significantly. At Infosys, we have been
able to grow our business in a sustainable manner, without a
proportionate increase in consumption of resources.
Investments in renewable energy have helped in reducing
our emissions, and high-impact carbon offset projects have
enabled us to offset our emissions.
Energy: Our new buildings continue to push the boundaries
of innovation and efficiency, setting an example for the
industry. We commenced operations of a 7,300-seater
super-efficient campus in Bengaluru with several innovative
technologies implemented in construction technique, lighting,
air-conditioning, parking management, etc. The facility uses
innovative radiant cooled technology, the largest of its kind in
India. Our enterprise-level energy-efficiency retrofit program
transforms existing buildings into efficient ones. Smart
automation has enabled remote monitoring, control and
optimization of building operations across over 30 million
sq.ft. of space. This has helped us manage our operations
efficiently and uninterrupted in the current situation caused
by the pandemic, ensuring health and safety of employees as
well as operations personnel.
Retrofits: Taking advantage of unoccupied offices due
to employees working from home, retrofit projects on
lighting, air conditioning, UPS have been implemented in
several critical areas, which, in a normal scenario, would
need a shutdown of buildings, inconveniencing employees
as well as disrupting operations. Accelerated phase-out of
R-22 refrigerant-based air-conditioning units is initiated for
improving energy efficiency and simultaneously, use of units
with refrigerants which have zero ODP and low GWP, thus
enabling reduction of GHG emissions as well.
Energy-efficiency retrofits have helped us reduce connected
load by 34.6 MW across Infosys. Retrofit projects were taken
up for the following reasons: resource conservation, end-of-life
of equipment, indoor environment quality improvement, and
technology upgrade.
The capital investment in energy conservation projects was
about ` 5 crore in fiscal 2021.
Renewable energy: We have a total capacity of 60 MW of
solar PV, including rooftop and ground-mounted systems.
We continue to pursue green power purchase from third-party
power producers and continue working with governments
to enable favorable policies for scaling up green power by
corporates in India.
Green buildings: In fiscal 2021, our new buildings in Indore
and Hubballi were awarded the LEED Platinum certification
from the US Green Building Council. We also received IGBC
Platinum certification (Interiors
category) for our leased space in
Pune. With this, we now have 37
projects at Infosys with the highest
level of green building certification,
spanning a total area of 26.07
million sq.ft. An additional 3.45
million sq.ft. of our ongoing
projects is currently undergoing
green building certification.
All our new buildings follow the highest standard of resource
efficiency resulting in minimum impact to the environment.
In the process, we also aim to achieve the highest level of
green building certification.
Water management: We follow the 3 Rs strategy – Reduce,
Recycle and Reuse – for effective water management.
Demand-side measures and awareness creation, smart
metering to track real-time water usage and advanced
technology sewage treatment plants, have reduced our water
consumption significantly. Additionally, rainwater harvesting
through lakes, recharge wells and rooftop rainwater collection
further reduce dependency on external sources and have
a positive impact on the water table. In fiscal 2021, we
commissioned an 8 MLD sewage treatment plant as part of
the lake rejuvenation project for Hebbal lake. The project
was a PPP model with the Government of Karnataka, taken
up through the CSR initiative of Infosys.
Waste management: We continue to pursue our goal of
minimizing waste going to landfills. Organic waste, such as
food waste and garden waste, is treated within our campuses.
We now have the capacity to treat 100% of organic waste
within our campuses, enabling a circular economy.
For all other waste, proper segregation at source has
ensured effective recycling and disposal of different types
of waste generated, in adherence to applicable legislation.
Our commitment to reducing plastic usage has ensured a
number of alternatives to plastic in daily use. We continue to
work with different stakeholders to reduce waste generated
within our campuses.
Infosys Annual Report 2020-21
Annexures to the Board’s report | 61
Carbon offsets: Infosys continues to identify and work on
issues in rural India that also offer a potential for emission
reductions. Given the nature of our operations, despite
our best efforts in reducing / avoiding emissions within
our boundaries, a sizeable emissions basket remains.
These include emissions from business travel, employee
commute, etc. While Infosys continues to have a choice to
offset through carbon credits that are offered in the market,
we made a deliberate choice – a choice to get involved in every
action aimed to reduce and / or avoid emissions. This year,
we added one new household biogas project, in the Vidarbha
region of Maharashtra, to our program portfolio bringing the
total number of carbon offset projects to nine. These include
efficient cook stoves (five projects), biogas (three projects)
and rural electrification (one project).
Upon completion, these projects
will benefit over 1,75,000 families.
As of fiscal 2021, we have taken
our project coverage to over
1,19,000 families, while also
creating over 2,600 jobs.
Our projects align with India’s
commitment to the United Nations
Sustainable Development Goals (UNSDGs), including
poverty reduction, good health and wellbeing, clean energy,
and climate action, among others.
Health, safety and environment
One of the hallmarks of our efforts to provide a safe and
healthy workplace has been the establishment of a robust
Health, Safety and Environmental Management System
(HSEMS) christened Ozone. The driving force behind this has
been the various requirements from multiple stakeholders,
including clients, internal customers, vendor partners,
law enforcement / regulatory bodies, and the communities
in which we operate. Systems have been established in
accordance with internationally-recognized standards /
specifications, and Infosys is certified a ISO14001:2015
and ISO 45001:2018 in our India locations. Protecting
the environment, providing the right workplace ambience,
and safeguarding health and safety of personnel, including
employees, contract workers and visitors, are strategic
priorities for us. The HSEMS includes well-defined policies
and procedures and also strives to keep interested parties
well-informed, trained and committed to our HSE process.
Technology absorption
Live Enterprise@Infosys: An enterprise that senses, feels
and responds in real time – this was the theme of our
transformation journey of the last two years. It had to be a
mobile-first approach so that employees are connected to the
organization wherever they are in the world and can access
the organization assets to learn and contribute. The response
has been phenomenal, with all our key processes becoming
faster and more responsive, with more than 80% of our
employees experiencing 250+ features on the InfyMe app,
which is built on the latest open source stack.
To enable all of this, our core back-end infrastructure was
transformed to host modern applications, using the scalability
of cloud, security of on-premise infrastructure in a hybrid
cloud deployment using open source technologies with highly
scalable container orchestration solutions like Kubernetes for
microservices. Telemetry infrastructure using the ELK stack
provides enhanced real-time visibility and enabled proactive
error detection and correction.
Enterprise storage modernization: As part of new technology
adoption, we have successfully modernized our enterprise
storage platform. The entire migration was completed with
zero downtime. This platform adopted latest storage disk
technology, which drives enhanced performance up to 10X,
compression and deduplication advantages along with data
availability guarantee. This initiative delivered power savings
of 46% for this landscape.
Infrastructure-as-code: Infrastructure as code
is a
transformational initiative towards enabling continuous
deployment, continuous integration, and touchless
management of the life cycle of infrastructure components.
This methodology overcomes the traditional challenges
like growing scale of infrastructure, elastic demand, speed
and consistency of deployment and the interdependency
between teams. This initiative delivered 1,200+ playbooks for
automating platform-related processes across hybrid cloud.
Cloud-native application platform: As part of modernizing
applications, some of the applications need to be exposed to
different user bases with varied authentication mechanisms.
The cloud-native application platform gives the capabilities
in a ready-to-use architecture. This enables quick onboarding
of applications with industry-standard security along with
greater scalability and availability using the power of cloud.
Modern, hybrid, and secure workplace: Bringing together
technologies like borderless ODCs, virtual collaboration tools,
and self-serve applications, our hybrid workplace ecosystem
empowers employees with much-needed flexibility to work
from anywhere. A resilient IT management system minimizes
threats and prevents attacks, through a continuous cycle of
vulnerability assessment and remediation, to safeguard our
data and brand reputation.
OneStop platform: We have introduced ‘OneStop’ unified
provisioning platform for endpoint, cloud, software,
and tools. The PolyCloud digital backplane provides an
abstraction of managed private cloud and public cloud
services, empowering full stack developers. The ‘go any cloud’
platform empowers digital natives to consume Kubernetes
containers, WebDevStacks, database, and platforms, as
services through self-service models; powering business-led
innovations and Live Enterprise Platform Suites.
The OneStop platform lets project managers request IT
hardware and software in advance, enabling new hires to be
productive on Day One. The ‘IT Genie’ intuitive app in the
laptop helps users self-configure basic applications, reducing
interactions with IT Support team.
62 | Annexures to the Board’s report
Infosys Annual Report 2020-21
Energy-efficient IT infrastructure
We have adopted a multi-pronged strategy to make our
IT infrastructure energy-efficient and green. Some of the
measures implemented are:
Public cloud adoption: Currently, more than 60% of the
internal computer workload has been migrated to public
cloud. More than 2.5 lakh mailboxes are being hosted on
cloud-based messaging platforms.
2.4 lakh+ employees have started to adopt cloud-based
collaboration platform for messaging, presence, video, and
other collaboration requirements.
Datacenter modernization: A strategic initiative launched
by InfosysIT to modernize the datacenter IT landscape
to make it future-ready, continues to yield high rewards.
Density- optimized hyperscale platforms have been
deployed to deliver high density server virtualization and
consolidation across the enterprise. The hyperscale platforms
are open-driven infrastructure innovations, which provide
cloud-scale agility and enables efficient resource pooling and
utilization. This initiative has delivered 75% power savings
on green energy efficiency aspects and drastically reduced the
total cost of ownership for the organization.
Enterprise storage: We continue to provide around 1.8PB
storage capacity for employees, revenue projects and internal
requirements on All Flash storage with Fabric Pool and Storage
Grid technology. Data is marked hot and cold based on policy,
cold data is automatically moved onto cheaper larger capacity
storage, thereby achieving tiering of data and savings in terms
of Data Center footprint, power consumption and cooling.
This resulted in CO2 reduction of 6,81.88 metric ton per year
and power saving of 14,32,811 kWh per year.
Cloud-native development environment: The open
source-based cloud-native development platform is built on
Hyper Converged Infrastructure (HCI) and compute which
has helped in data center footprint reduction by 80% along
with the reduction in power and cooling consumption by 30%.
Bengaluru
April 14, 2021
Research and development (R&D) expenditure –
standalone
Revenue expenditure
Capital expenditure
Total
R&D expenditure / revenue (%)
2021
2020
2021
2020
2021
2020
2021
2020
in ` crore
508
458
4
12
512
470
0.6
0.6
Future plan of action
We will continue to collaborate with leading national and
international universities, product vendors and technology
startup companies. We are creating an ecosystem to co-create
business solutions on client-specific business themes.
Foreign exchange earnings and outgo
We have established a substantial direct marketing network
around the world, including North America, Europe and
Asia-Pacific. These offices are staffed with sales and marketing
specialists who sell our services to large international clients.
Activity in foreign currency – standalone
Earnings
Expenditure
Net foreign exchange earnings (NFE)
NFE / earnings (%)
2021
2020
2021
2020
2021
2020
2021
2020
in ` crore
84,252
77,974
46,433
44,254
37,819
33,720
44.9
43.2
for and on behalf of the Board of Directors
Sd/-
Sd/-
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and
Managing Director
Infosys Annual Report 2020-21
Annexures to the Board’s report | 63
Annexure 8 – Corporate policies
We seek to promote and follow the highest level of ethical standards in all our business transactions guided by our value system. The SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended, mandates the formulation of certain policies for all listed companies. The corporate governance policies are available on the
Company’s website, at https://www.infosys.com/investors/corporate-governance/Pages/policies.aspx. The policies are reviewed periodically by the Board and updated as needed.
During the year and at its meeting held on April 14, 2021, the Board revised and adopted some of its policies.
Key policies that have been adopted are as follows:
Name of the policy
Whistleblower Policy
(Policy on vigil mechanism)
Code of Conduct and Ethics
Capital Allocation Policy
Dividend Distribution Policy
Infosys Code on Fair Disclosures
and Investor Relations
Policy for Determining
Materiality for Disclosures
Recoupment Policy
Nomination and
Remuneration Policy
Brief description
The Company has adopted a whistleblower mechanism for directors and
employees to report concerns about unethical behavior, actual or suspected
fraud, or violation of the Company’s code of conduct and ethics. The policy
was revised and adopted effective April 1, 2019.
The Company has adopted the Code of Conduct and Ethics which forms the
foundation of its ethics and compliance program. The policy was revised and
adopted effective July 12, 2019.
The Policy applies to the distribution of free cash flow as dividend or buyback
over the next five-year period ending in fiscal 2024. The policy was revised
and adopted effective July 12, 2019.
The Company has adopted the Dividend Distribution Policy to determine the
distribution of dividends in accordance with the provisions of applicable laws.
The policy was revised and adopted effective April 20, 2020.
The policy is aimed at providing clear guidelines and procedures for disclosing
material information outside the Company in order to provide accurate
and timely communications to our shareholders and the financial markets.
The policy was revised effective January 13, 2021.
This policy applies to disclosures of material events affecting Infosys and its
subsidiaries. This policy is in addition to the above-mentioned Infosys Code
on Fair Disclosures and Investor Relations. The policy was revised and adopted
effective April 14, 2021.
The policy deals with the provisions if the Company restates its financial
statements. It allows the Company to recover any incentive-based
compensation received by an executive officer that is in excess of what would
have been payable based on the restated and corrected financial statements.
The policy was adopted effective January 14, 2016.
This policy formulates the criteria for determining qualifications,
competencies, positive attributes and independence for the appointment of a
director (executive / non-executive) and also the criteria for determining the
remuneration of the directors, KMP, senior management and other employees.
The policy was revised and adopted effective April 20, 2020.
Web link
https://www.infosys.com/investors/corporate-governance/
Documents/whistleblower-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/CodeofConduct.pdf
https://www.infosys.com/investors/corporate-governance/
documents/capital-allocation-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/dividend-distribution.pdf
https://www.infosys.com/investors/corporate-governance/
documents/code-fair-disclosures-investor-relations.pdf
https://www.infosys.com/investors/corporate-
governance/Documents/policy-determining-
materiality-disclosures.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/recoupment-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/nomination-remuneration-policy.pdf
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Name of the policy
Corporate Social
Responsibility Policy
Policy on Material Subsidiaries
Related Party Transaction Policy
Document Retention and
Archival Policy
Board Diversity Policy
Brief description
The policy outlines the Company’s strategy to bring about a positive impact on
society through programs relating to hunger, poverty, education, healthcare,
environment, and lowering of the Company’s resource footprint. The policy
was revised and adopted effective April 20, 2020.
The policy is used to determine the material subsidiaries and material unlisted
Indian subsidiaries of the Company and to provide the governance framework
for them. The policy was revised and adopted effective April 12, 2019.
The policy regulates all transactions between the Company and its related
parties. The policy was revised and adopted effective April 14, 2021.
The policy deals with the retention and archival of corporate records
of Infosys Limited and all its subsidiaries. The policy was adopted
effective December 1, 2015.
The policy sets out the approach to diversity on the Board of the Company.
The policy was adopted in 2015.
Web link
https://www.infosys.com/investors/corporate-governance/
Documents/corporate-social-responsibility-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/material-subsidiaries-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/related-party-transaction-policy.pdf
https://www.infosys.com/investors/corporate-governance/
Documents/document-retention-archival-policy.pdf
https://www.infosys.com/investors/corporate-governance/
documents/board-diversity-policy.pdf
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Management’s discussion and analysis
Overview
Infosys is a leading provider of consulting,
technology, outsourcing and next-generation
digital services, enabling clients in more than
50 countries to create and execute strategies
for their digital transformation.
Our vision is to build a globally-respected
organization delivering the best-of-breed
business solutions, leveraging technology,
delivered by the best-in-class people. We are
guided by our value system which motivates
our attitudes and actions. Our core values
are Client Value, Leadership by Example,
Integrity and Transparency, Fairness, and
Excellence (C-LIFE).
Our strategic objective is to build a sustainable
organization that remains relevant to the
agenda of our clients, while creating growth
opportunities for our employees, generating
profitable growth for our investors and
contributing to the communities that we
operate in. There are numerous risks and
challenges affecting our business. These are
discussed in the ‘Risk factors’ section
in this Annual Report.
Quick facts
Presence in
Over 50 countries
In fiscal 2021
Infosys won large deals
with over US$(cid:4)14 billion TCV
In fiscal 2021
Industry-leading
revenue growth of 5.0%
66 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Industry structure and developments
I.
Software and computing technology are transforming
businesses in every industry around the world in a profound
and fundamental way. Companies are rapidly adopting digital
technologies to reimagine their cost structures, increase
business resilience and agility, personalize experiences
for their customers and employees, and launch new and
disruptive products and services. While these trends have
been unfolding for a few years now, they have been accelerated
because of the COVID-19 pandemic and resulting shifts.
Leveraging technologies and models of the digital era to both
extend the value of existing investments and, in parallel,
transform and future-proof businesses, is increasingly
becoming a top strategic imperative for business leaders.
From an IT perspective, the renewal translates to re-imagining
human-machine interfaces, extracting value out of digitized
data, building next-generation software applications and
platforms, harnessing the efficiency of distributed cloud
computing, modernizing legacy technology landscapes and
strengthening information security and data privacy controls.
The fast pace of technology change and the need for technology
professionals who are highly skilled in both traditional and
digital technology areas are driving businesses to rely on third
parties to realize their business transformation. Several new
technology solution and service providers have emerged over
the years, offering different models for clients to consume
their solution and service offerings, such as data analytics
companies, software-as-a-service businesses, cloud platform
providers, digital design boutiques, and specialty business
process management firms.
While these developments present strong market
opportunities for the IT industry, there is also an imperative
need for IT services and solutions companies to transition
from fast-commoditizing traditional service offerings, to
attract and retain quality talent globally, to reimagine cost
structures and leverage automation for increased productivity.
II. Opportunities and threats
Our strategy
Our clients and prospective clients are faced with
transformative business opportunities due to advances in
software and computing technology. These organizations
are dealing with the challenge of having to reinvent their
core offerings, processes and systems rapidly and position
themselves as “digitally enabled”. The journey to the digital
future requires not just an understanding of new technologies
and new ways of working, but a deep appreciation of existing
technology landscapes, business processes and practices.
Our strategy is to be a navigator for our clients as they ideate,
plan and execute on their journey to a digital future.
In 2018, we embraced a four-pronged strategy to strengthen
our relevance with clients and drive accelerated value creation:
1. Scale Agile Digital
2. Energize the core
3. Reskill our people
4. Expand localization
Mohit Joshi
President
Clients have now realized that the most
important store front is digital and with
employees largely working remotely or in
a hybrid model, even the manufacturing
process is digital. We have an opportunity to
reshape our clients’ technology landscapes
and help them as they evolve to newer
digital models. The various clients who
we are working with are testament to the
promise of digital transformation and the
outstanding results we have achieved.
We believe the investments we have made, and continue
to make, in our strategy will enable us to advise and help
our clients as they tackle the current market conditions –
especially in the areas of digitization of processes, migration
to cloud-based technologies, workplace transformation,
business model transformation, enhanced cybersecurity
controls and optimizing cost structures in IT. Further, we
have been able to successfully enable most of our employees
worldwide to work remotely and securely – giving us the
operational stability to deliver on client commitments and
ensuring our own business continuity.
Over the last three years, we have executed on this strategy and
generated significant outcomes as described further below.
Scale Agile Digital: Our revenue from digital technology-related
services and solutions have more than doubled in the last three
years, and currently comprises 48.5% of our total revenue.
We are rated as a “leader” in 48 industry analyst ratings
across our digital offerings. These outcomes are a result of
investments we have made to expand our digital footprint
via reskilling of our employees, targeted acquisitions, strong
ecosystem partnerships, innovation experience centers across
the world, intellectual property development, reconfiguring
our workspaces for agile software development and
enhancing our brand.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 67
Our human experience-related services expanded with the
opening of 8 digital delivery centers, 6 digital studios and
12 proximity centers around the world. During the fiscal, we
acquired Carter Digital to augment our human experience
capabilities in Australia. Through our academia partnerships
with Purdue, Trinity, RISD and eCornell, we have trained over
2,648 employees in niche digital skills.
Our Insight and data analytics services and solutions were
further strengthened with the launch of our Infosys Applied
AI solutions, coupled with the Infosys Data Workbench.
With advances in next-generation computing power, ready
access to datasets on the cloud to train Machine Learning
models and consumable Artificial Intelligence (AI) services,
our solutions enable our clients to generate insights from their
data and open opportunities for data monetization.
Our Innovate-related services and solutions are boosted by
workspaces that have been specifically redesigned for agile
software development, teams reskilled in agile methodologies,
a large number of certified scrum masters and capabilities
in horizontal technologies such as 5G, autonomous tech,
product engineering, Internet of Things and blockchain.
Our Accelerate-related services are aimed at rapidly
transforming our clients’ legacy technology landscapes and
processes with digital technology – helping them migrate
to cloud environments, modernize mainframe applications,
abstract legacy applications through APIs and embed
open-source technologies in new applications. We invested
in, and built strong partnerships with cloud hyperscalers such
as AWS, GCP and Microsoft Azure, and SaaS providers. We
launched Infosys CobaltTM, bringing together all our cloud
investments – public cloud, private cloud, cloud applications,
data on cloud, cloud security, etc. Infosys CobaltTM is a set of
Ravi Kumar S.
President and Deputy
Chief Operating Officer
Cloud will be the foundational pillar to
drive digital journeys for large enterprises.
It will power the enterprise’s innovation
infrastructure, bring agility to operations,
drive connected products, enable
employees to work from anywhere through
hybrid workplaces and drive non-linear
value for business from new-age AI and
data platforms. With Infosys CobaltTM,
we are helping businesses redesign the
enterprise from the core, to capture this
exponential value from cloud.
services, solutions and platforms for enterprises to accelerate
their cloud journey. It offers over 14,000 cloud assets and
over 200 industry cloud solution blueprints.
Our Automation and AI services grew on the back of our
alliances with leading Robotic Process Automation (RPA)
solution providers. We have automated over 20,000+
processes for our clients and have over 1,000 ready use
cases across industries.
Our Assure services, in software testing and cybersecurity
continued to grow with investments in Cyber Gaze, our
cybersecurity dashboard and suite of related applications.
Energize the core: Leveraging automation and AI, we
are winning and executing several engagements for our
clients to modernize their core legacy technology and
process landscapes. We made significant investments in
our “Live Enterprise” platform, including our Bot Factory
of preconfigured automation bots and LEAP, our platform
for optimizing large-scale application maintenance and
reengineering. In fiscal 2021, we won a total contract value
of over US$ 14 billion in large deals – more than four times
what we won in fiscal 2018 – demonstrating our capabilities
and competitiveness in executing complex transformation
programs. In addition, investments in our own internal systems,
reimagination of our internal processes and automation of
software development processes have helped increase our
agility, boost productivity and enhance our competitiveness
even in the current paradigm of remote working.
Reskill our people: Continuous learning and reskilling has
always been integral to our operating model. We operate
our reskilling program with the twin objectives of increasing
fulfillment of demand for digital skills in client projects
and for enriching the expertise of our global workforce
in next-generation technologies and methodologies.
We invested in, and scaled, our digital reskilling program
globally. Our in-house developed, anytime anywhere learning
platform, Lex, offers over 1,800 courses curated for easy
consumption on mobile devices with advanced telemetry,
gamification and certification features. Over 2,40,000 of
our employees use Lex and are spending approximately 45
minutes per day on average for learning activities.
Expand localization: With the objective of creating
differentiated talent pools and ecosystems in our markets,
we made significant investments in expanding our local
workforce in the US, the UK, Europe, Japan, China and
Australia. We established innovation hubs, near-shore centers
and digital design studios across geographies. Further, we
expanded our university and community college partnerships
in all these regions to aid internships, recruitment, training
and joint research. In fiscal 2021, we recruited over 7,280
employees locally in our markets, of which 1,941 were
fresh graduates. This workforce brings us greater diversity
of skills and experience. This initiative also significantly
de-risks our operations from regulatory changes related to
immigration policies.
COVID-19
The COVID-19 pandemic is a global humanitarian and health
crisis, that continues to impact all our stakeholders – employees,
clients, investors and communities we operate in. Many countries
68 | Management’s discussion and analysis
Infosys Annual Report 2020-21
are reporting the second and third waves of infections. The actions
taken by various governments to contain the pandemic, such as
closing of borders and lockdown restrictions, have resulted in
significant disruption to people and businesses. While vaccines
have been made available, there are delays in vaccinating larger
populations, increased instances of variants and infections, and
consequential stress on the healthcare sector. Consequently,
market demand and supply chains have been affected.
In responding to this crisis, our primary objective has been
to ensure the safety of our employees worldwide, to deliver
our client commitments, and put in place mechanisms to
protect the financial wellbeing of the Company, and protect
its long-term prospects.
During the year, we launched several health and wellness
programs for our employees covering various aspects of
physical and emotional wellbeing, counselling support and
awareness. In particular, together with health professionals
and hospitals across our various locations, we offered
COVID-19 related care for our employees and their families.
Working closely with government authorities, we launched
COVID-19 vaccination centers in our campuses and at select
hospitals in India for eligible employees. For those employees
working from our physical offices, we have established a safe
work environment and protocols for testing and quarantine.
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Pivoting to a remote working model, in
response to the pandemic, proved less
of a challenge for Infosys, thanks to our
investments in building digital capabilities
and skills for our workforce in distributed
agile working. We have clearly established
that any work can potentially be done
anywhere in the world without loss of
productivity or integrity of the work.
With our clients accelerating the pace of
their digital adoption, there is growing need
for talent with digital skills. While we will
continue to hire talent and operate from our
many global offices adapted for the new
normal, when the situation permits, the
work-from-anywhere model will also allow
us to tap into talent pools more ubiquitously
– even in towns and cities where we may
not have offices and delivery centers.
We are fully prepared to institutionalize
this structured hybrid working model to
serve the needs of our clients and their
projects effectively.
We are closely monitoring regulations and accordingly issuing
travel advisories to our employees. We made arrangements to
ensure the safety and wellbeing of our employees who have
travelled for business to locations outside their home country
and are currently restricted from travelling back.
At this time, a majority of our employees across the world
continues to work remotely. As of March 31, 2021, we had
enabled 99.3% of our employees with a secure remote working
environment. As of March 31, 2021, 96.5% of our employees
were working remotely. Employees engaged in critical client
projects, business continuity operations and projects that
manage sensitive client data continued to work from our
offices. We enabled extensive use of collaboration platforms and
continue to monitor the productivity of employees as they work
remotely. We successfully conducted several client, partner and
employee-related events online during the year.
We continued to optimize our cost structure and execute
operational rigor. We improved liquidity and cash
management with a rigorous focus on working capital cycles,
capital expenditures and cost optimization.
A detailed description of specific risks arising from COVID-19
is available under “Outlook, risks and concerns” in this section.
Our strengths
We believe that we are well-positioned for the principal
competitive factors in our business. With almost four decades
of experience in managing the systems and workings of global
enterprises, we believe we are uniquely positioned to help
them steer through their digital transformation with our
Digital Navigation Framework.
We offer end-to-end service offering capabilities in consulting,
software application development, integration, maintenance,
validation, enterprise system implementation, product
engineering, infrastructure management and business
process management.
We have built specific industry domain and technology
expertise, and in methodologies such as Design Thinking
and agile software development. These give us the ability
to articulate and demonstrate long-term value to our clients
around the world, with whom we have deep, enduring and
expansive relationships.
We have invested in building proprietary intellectual
property in software platforms and products such as
Infosys NIA®, our flagship AI platform, the Edge suite of
products, Finacle®, McCamish and Stater that either amplify
our own services or provide differentiated solutions for our
clients’ business processes.
We have perfected sophisticated service delivery and quality
control processes, standards and frameworks, that have
resulted in a track record of performance excellence and client
satisfaction. Our Global Delivery Model effectively integrates
global and local execution capabilities to deliver high-quality,
seamless, scalable and cost-effective services for large-scale
outsourcing of technology projects fueled by automation,
intelligence and collaboration technologies.
We have nurtured premier ecosystem alliances with enterprise
software companies, cloud providers and innovative startup
companies to be able to offer holistic solutions to our clients.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 69
We have the ability to attract and retain high-quality
management and technology professionals, and sales
personnel globally and at scale.
Our internal research and development teams identify,
develop and deploy new offerings leveraging next-generation
technologies. We have invested extensively in the
infrastructure and systems to enable learning and education
across the enterprise at scale. These give us the ability to keep
pace with ever-changing technology and how they apply to
customer requirements.
We have a strong and well-recognized brand.
We have the financial strength to be able to invest in
personnel and infrastructure to support the evolving
demands of customers.
We maintain high ethical and corporate governance standards
to ensure honest and professional business practices and
protect the reputation of the Company and its customers.
Our competition
We experience intense competition in traditional services and
see a rapidly-changing marketplace with new competitors
in niche technology areas who are focused on agility,
flexibility and innovation.
We typically compete with other large, global technology
service providers in response to requests for proposals.
Clients often cite our industry expertise, comprehensive
end-to-end service capability and solutions, ability to scale,
digital capabilities, established platforms, superior quality
and process execution, distributed agile global delivery
model, experienced management team, talented professionals
and track record as reasons for awarding us contracts.
In future, we expect intensified competition. In particular,
we expect increased competition from firms that offer
technology-based solutions to business problems, cloud
providers and from firms incumbent in those market
segments. Additionally, insourcing of technology services
by the technology departments of our clients is another
ongoing competitive threat.
III. Financial condition
The Company has considered the possible effects that may result
from the pandemic relating to COVID-19 in the preparation
of its financial statements, including the recoverability of
carrying amounts of financial and non-financial assets.
In developing the assumptions relating to possible future
uncertainties in the global economic conditions because of
this pandemic, the Company has, at the date of approval of
its financial statements, used internal and external sources of
information including credit reports and related information
and economic forecasts and expects that the carrying amount
of these assets will be recovered. The impact of COVID-19
on the Company’s financial statements may differ from that
estimated as at the date of approval of its financial statements.
Sources of funds
1. Equity share capital
We have one class of shares – equity shares of par value ` 5
each. Our authorized share capital is ` 2,400 crore, divided
into 480 crore equity shares of ` 5 each. The issued, subscribed
and paid-up capital is ` 2,130 crore as at March 31, 2021 and
` 2,129 crore as at March 31, 2020, including treasury shares
held by a controlled trust. The movement in share capital
is primarily on account of shares issued during the year on
exercise of stock options.
Proposed share buyback
In line with the Capital Allocation Policy reviewed and
approved on July 12, 2019, the Board, at its meeting held
on April 14, 2021, approved the buyback of equity shares,
through the open market route through the Indian stock
exchanges, amounting to ` 9,200 crore (Maximum Buyback
Size, excluding buyback tax) at a price not exceeding ` 1,750
per share (Maximum Buyback Price), subject to shareholders’
approval in the ensuing Annual General Meeting (AGM).
Considering the proposed buyback and dividends for fiscal
2021, the Company would have returned approximately 83%
of the free cash flow for fiscal 2020 and fiscal 2021 in line
with the Capital Allocation Policy.
Share buyback in fiscal 2020
Based on the postal ballot that was concluded on March 12,
2019, the shareholders approved the buyback of equity
shares through the open market route through Indian stock
exchanges of up to ` 8,260 crore at a price not exceeding
` 800 per share. The buyback of equity shares through
the stock exchanges was completed on August 26, 2019.
The Company had purchased and extinguished a total of
11,05,19,266 equity shares at an average buyback price of
` 747 per equity share.
Employee Stock Option Plans (ESOPs)
Infosys Expanded Stock Ownership Program 2019
(“the 2019 Plan”)
On June 22, 2019, pursuant to the approval by the shareholders
in the AGM, the Board was authorized to introduce, offer,
issue and provide share-based incentives to eligible employees
of the Company and its subsidiaries under the 2019 Plan.
The maximum number of shares under the 2019 Plan shall
not exceed 5,00,00,000 equity shares. To implement the
2019 Plan, up to 4,50,00,000 equity shares may be issued
by way of secondary acquisition of shares by the Infosys
Expanded Stock Ownership Trust. The Restricted Stock
Units (RSUs) granted under the 2019 Plan shall vest based on
the achievement of defined annual performance parameters
as determined by the administrator (the nomination and
remuneration committee). The performance parameters
will be based on a combination of relative total shareholder
return (TSR) against selected industry peers and certain
broader market domestic and global indices and operating
performance metrics of the Company as decided by the
administrator. Each of the above performance parameters will
be distinct for the purposes of calculation of the quantity of
shares to vest based on performance. These instruments will
generally vest between a minimum of one to a maximum of
three years from the grant date.
70 | Management’s discussion and analysis
Infosys Annual Report 2020-21
2015 Stock Incentive Compensation Plan
(“the 2015 Plan”)
On March 31, 2016, pursuant to the approval by the
shareholders through a postal ballot, the Board was authorized
to introduce, offer, issue and allot share-based incentives to
eligible employees of the Company and its subsidiaries under
the 2015 Plan. The maximum number of shares under the
2015 Plan shall not exceed 2,40,38,883 equity shares (this
includes 1,12,23,576 equity shares which are held by the
Trust towards the 2011 RSU Plan (“the 2011 Plan”) as at
March 31, 2016). These instruments will generally vest over
a period of four years and the Company expects to grant
the instruments under the 2015 Plan over the period of
four to seven years. These RSUs and stock options shall be
exercisable within the period as approved by the nomination
and remuneration committee. The exercise price of the RSUs
will be equal to the par value of the shares and the exercise
price of the stock options would be the market price as on
the date of the grant.
Consequent to the September 2018 bonus issue, all the then
outstanding options granted under the stock option plan have
been adjusted for bonus shares.
A controlled trust holds 1,55,14,732 and 1,82,39,356 shares
as at March 31, 2021 and March 31, 2020, respectively, under
the 2015 Plan. Out of these, 2,00,000 equity shares have been
earmarked for welfare activities of employees as at March 31,
2021 and March 31, 2020, respectively.
The summary of grants made during fiscals 2021 and 2020 under the 2015 Plan and 2019 Plan is as follows:
2015 Plan
RSU – Equity-settled
Incentive units – Cash-settled
Total grants
2019 Plan
Total grants – Equity-settled RSU
Fiscal 2021
26,60,611
1,15,250
27,75,861
Fiscal 2021
15,96,408
Fiscal 2020
38,54,176
6,56,140
45,10,316
Fiscal 2020
20,91,293
For additional information on the Company’s stock incentive
compensation plans, refer to Note 2.11, ‘Employee stock
option plan’, of both the Standalone and Consolidated financial
statements in this Annual Report.
2. Other equity
A. Reserves and surplus
Securities premium
On a standalone basis, the balance as at March 31, 2021 and
March 31, 2020 amounted to ` 581 crore and ` 268 crore,
respectively. On a consolidated basis, the balance was ` 600
crore and ` 282 crore as at March 31, 2021 and March 31,
2020, respectively. Increase in securities premium on both
standalone and consolidated basis is mainly on account
of transfer of ` 260 crore from share options outstanding
account upon exercise.
Retained earnings
On a standalone basis, the balance in retained earnings as at
March 31, 2021 was ` 57,518 crore after considering ` 9,158
crore for final dividend for fiscal 2020 and interim dividend
declared in fiscal 2021. Further, ` 2,237 crore was transferred
to the Special Economic Zone (SEZ) Re-investment Reserve
net of utilization out of retained earnings during the year
and ` 1,554 crore was transferred to the general reserve
on account of declaration of final dividend for fiscal 2020.
The balance in retained earnings as at March 31, 2020
was ` 52,419 crore after considering ` 9,553 crore for final
dividend for fiscal 2019 and interim dividend declared in
fiscal 2020, including dividend distribution tax thereon. Also,
` 4,717 crore was utilized from retained earnings for buyback
of equity shares. Further, ` 1,428 crore was transferred to
the Special Economic Zone (SEZ) Re-investment Reserve
net of utilization out of retained earnings during the year
and ` 1,470 crore was transferred to the general reserve on
account of declaration of final dividend for fiscal 2019.
On a consolidated basis, the balance in retained earnings as at
March 31, 2021 was ` 62,643 crore, as compared to ` 56,309
crore in the previous year.
General reserve
During the year, an amount of ` 1,554 crore was transferred
to the general reserve from retained earnings on account of
dividend appropriation, as compared to ` 1,470 crore in the
previous year. During fiscal 2020, an amount of ` 1,494 crore
was utilized for buyback of shares, ` 11 crore was charged
as transaction costs relating to buyback and ` 50 crore was
transferred to the Capital Redemption Reserve upon buyback
in accordance with Section 69 of the Companies Act, 2013.
On a standalone basis, the balance in general reserve as
at March 31, 2021 amounted to ` 1,663 crore (previous
year ` 106 crore). On a consolidated basis, the balance as
at March 31, 2021 amounted to ` 2,715 crore (previous
year ` 1,158 crore).
Share options outstanding account
On a standalone and consolidated basis, the share options
outstanding account amounted to ` 372 crore as at March 31,
2021, as compared to ` 297 crore as at March 31, 2020.
The movement is mainly on account of expense related
to employee stock compensation expense, and impact of
modification of share-based payment awards.
Special Economic Zone Re-investment Reserve
During the year, a net amount of ` 2,237 crore and ` 2,315
crore was transferred to the SEZ Re-investment Reserve
net of utilization on a standalone and consolidated basis,
Infosys Annual Report 2020-21
Management’s discussion and analysis | 71
respectively. This reserve has been created out of the profits
of eligible SEZ units in terms of the provisions of Section
10AA(1)(ii) of the Income-tax Act, 1961. This reserve should
be utilized by the Company for acquiring new plant and
machinery for the purpose of its business in the terms of
Section 10AA(2) of the Income-tax Act, 1961.
Capital reserve
On a standalone and consolidated basis, the balance as at
March 31, 2021 amounted to ` 54 crore, which is the same
as the previous year.
Other reserves
Profit on transfer of business between entities under common
control is taken to other reserve. During the year, ` 176
crore was reduced on account of transaction under common
control (refer to Note 2.4, ‘Investments’, in the Standalone
financial statements of this Annual Report for details of the
business transfer). On a standalone basis, the balance as at
March 31, 2021 and March 31, 2020 was ` 2,906 crore and
` 3,082 crore, respectively.
Capital Redemption Reserve
On a standalone and consolidated basis, the balance as at
March 31,2021 amounted to ` 111 crore, which is the same
as the previous year.
B. Other comprehensive income
Equity instruments through other comprehensive
income
On a standalone basis, there was an accumulated gain of ` 169
crore and ` 49 crore as at March 31, 2021 and March 31,
2020, respectively, on the fair valuation of equity instruments
through other comprehensive income. On a consolidated
basis, there was an accumulated gain of ` 158 crore and ` 39
crore as at March 31, 2021 and March 31, 2020, respectively,
on the fair valuation of equity instruments through other
comprehensive income. The Company has made an
irrevocable election to present the subsequent changes in fair
value of those instruments in other comprehensive income.
Effective portion of cash flow hedges
The Company designates certain foreign exchange forward
and options contracts as cash flow hedges to mitigate the
risk of foreign exchange exposure on highly probable
forecast cash transactions.
When a derivative is designated as a cash flow hedge
instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive income
and accumulated in the cash flow hedging reserve, and is
transferred to the Statement of Profit and Loss upon the
occurrence of the related forecast transaction.
On a standalone and consolidated basis, the balance as at
March 31, 2021 is a surplus of ` 10 crore as compared to a
deficit of ` 15 crore, net of tax in the previous year.
Exchange differences on translating the financial
statements of a foreign operation
On a consolidated basis, the balance as at March 31, 2021
amounted to ` 1,331 crore, whereas the balance as at
March 31, 2020 was ` 1,207 crore.
Other items of other comprehensive income
Other items of other comprehensive income consist of
remeasurement gains / losses on our defined benefit plans
and fair value changes on investments, net of taxes.
On a standalone basis, there was a remeasurement gain, net
of taxes, of ` 148 crore during the current year, as compared
to a remeasurement loss, net of taxes, of ` 184 crore during
the previous year. Additionally, there was a fair valuation
loss on investments, net of taxes, of ` 102 crore during the
current year, as compared to a ` 17 crore fair valuation gain
on investments, net of taxes, during the previous year.
On a consolidated basis, there was a remeasurement gain, net
of taxes, of ` 134 crore during the current year, as compared
to a remeasurement loss, net of taxes, of ` 180 crore during
the previous year. Further, there was a fair valuation loss on
investments, net of taxes, of ` 102 crore during the current
year, as compared to a ` 22 crore fair valuation gain on
investments, net of taxes, during the previous year.
Total equity attributable to equity holders of the
Company
On a standalone basis, the total equity attributable to equity
holders of the Company has increased to ` 71,531 crore as at
March 31, 2021, compared to ` 62,234 crore as at March 31,
2020, primarily on account of profit earned during the year
offset by dividends declared.
On a consolidated basis, the total equity attributable to equity
holders of the Company has increased to ` 76,351 crore
as at March 31, 2021 from ` 65,450 crore as at March 31,
2020. The movement was primarily on account of profit
earned during the year offset by dividends declared. On a
consolidated basis, the book value per share is ` 180 as at
March 31, 2021 compared to ` 154 as at March 31, 2020.
Application of funds
3. Property, plant and equipment
Additions to gross block – standalone
During the year, additions to gross block were ` 2,015
crore, comprising ` 1,039 crore on infrastructure, ` 975
crore in computer equipment and ` 1 crore on vehicles.
Our infrastructure investments comprised ` 508 crore
on buildings, ` 113 crore on plant and machinery, ` 82
crore to acquire 71 acres of land primarily in Bengaluru,
Tumakuru and Hyderabad, ` 92 crore on furniture and
fixtures, ` 110 crore on office equipment, and ` 134 crore on
leasehold improvements.
During the previous year, additions to gross block were
` 3,035 crore, comprising ` 2,263 crore on infrastructure,
` 765 crore in computer equipment and ` 7 crore on vehicles.
Our infrastructure investments comprised ` 968 crore on
buildings, ` 428 crore on plant and machinery, ` 11 crore to
acquire 105 acres of land primarily in the US (Indianapolis),
Mysuru, Bengaluru and Mangaluru, ` 427 crore on furniture
and fixtures, ` 159 crore on office equipment, and ` 270 crore
on leasehold improvements.
72 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Additions to gross block – consolidated
During the year, additions to gross block were ` 2,231 crore,
comprising ` 1,071 crore on infrastructure, ` 1,159 crore in
computer equipment and ` 1 crore on vehicles. Our infrastructure
investments comprised ` 511 crore on buildings, ` 117 crore
on plant and equipment, ` 82 crore to acquire 71 acres of land
primarily in Bengaluru, Tumakuru and Hyderabad, ` 91 crore on
furniture and fixtures, ` 118 crore on office equipment and ` 152
crore on leasehold improvements. Additions through business
combinations during the year were ` 10 crore.
During the previous year, additions to gross block were
` 3,437 crore, comprising ` 2,500 crore on infrastructure,
` 930 crore in computer equipment and ` 7 crore on vehicles.
Our infrastructure investments comprised ` 1,056 crore on
buildings, ` 475 crore on plant and equipment, ` 11 crore to
acquire 105 acres of land primarily in the US (Indianapolis),
Mysuru, Bengaluru and Mangaluru, ` 465 crore on furniture
and fixtures, ` 169 crore on office equipment and ` 324 crore
on leasehold improvements. Additions through business
combinations during the year were ` 78 crore.
Deductions to net block – standalone
During the year, we deducted ` 14 crore from the net
block on the disposal of various assets as against ` 1 crore
in the previous year.
We have reclassified leasehold land with a gross block of ` 561
crore to Right-of-Use (ROU) assets on account of adoption
of Ind AS 116, Leases during the year ended March 31,
2020. Refer to Note 2.3 of the Standalone financial statements
for further details.
Deductions to net block – consolidated
During the year, we deducted ` 15 crore from the net
block on the disposal of various assets as against ` 1 crore
in the previous year.
We have reclassified leasehold land with a net block of ` 572
crore to ROU assets on account of the adoption of Ind AS 116,
Leases during the year ended March 31, 2020. Refer to Note
2.19 of the Consolidated financial statements for further details.
Capital expenditure commitments
On a standalone basis, we have a capital expenditure
commitment of ` 609 crore as at March 31, 2021, as compared
to ` 1,305 crore as at March 31, 2020. On a consolidated
basis, we have a capital expenditure commitment of ` 733
crore as at March 31, 2021, as compared to ` 1,365 crore
as at March 31, 2020. The commitments are primarily for
infrastructure facilities and computer equipment.
4. Goodwill and other intangible assets
On a consolidated basis, carrying value of goodwill as on
March 31, 2021 is ` 6,079 crore, which includes additions to
goodwill amounting to ` 758 crore on account of acquisition
of Kaleidoscope, GuideVision, s.r.o. and Blue Acorn iCi
and increase of ` 35 crore on account of foreign currency
translation. During the previous year, the carrying value of
goodwill was ` 5,286 crore.
On a standalone basis, carrying value of goodwill as on
March 31, 2021 is ` 167 crore, which included additions
amounting to ` 138 crore on account of business transfer
agreement executed with its wholly-owned subsidiaries,
Kallidus Inc. and Skava Systems Private Limited (together
referred to as “Skava”). During the previous year, the carrying
value of goodwill was ` 29 crore
On a consolidated basis, the carrying value of intangible
assets as on March 31, 2021 is ` 2,072 crore, whereas on
March 31, 2020, it was ` 1,900 crore. These primarily consist
of intangible assets acquired through business combinations,
stated at cost less accumulated amortization. Acquisition from
business combinations for the year ended March 31, 2021 is
` 535 crore. Refer to Note 2.3.2 of the Consolidated financial
statements for further details.
5. Financial assets
A. Investments
Subsidiaries
During the year, we have invested additionally in our
subsidiaries, for the purpose of acquisition of entities,
operations and expansions.
Subsidiary
WongDoody Holding
Company Inc
Infosys Nova Holdings
LLC
Infosys Consulting Brazil
Infosys China
In foreign currency
In ` crore
US$ 2.8 million
21
US$ 177 million
BRL 110 million
US$ 5 million
1,302
154
36
Investment in equity instruments of subsidiaries are carried at
cost as per Ind AS 27, Separate Financial Statements.
Refer to Note 2.23 of the Standalone financial statements in this
Annual Report for details on incorporation, liquidation and
merger of subsidiaries.
On October 11, 2019, the Board of Directors of Infosys
authorized the Company to execute a business transfer
agreement and related documents with its wholly-owned
subsidiaries, Kallidus Inc. and Skava Systems Private Limited
(together referred to as “Skava”), to transfer the business of
Skava to Infosys Limited for a consideration based on an
independent valuation. On August 15, 2020, the Company
entered into a business transfer agreement to transfer the
business of Kallidus Inc. and Skava Systems Private Limited for
a consideration of ` 171 crore, and ` 66 crore, respectively, on
securing the requisite regulatory approvals. The transaction was
between a holding company and a wholly-owned subsidiary
and therefore was accounted for at carrying values and did not
have any impact on the Consolidated financial statements.
Subsequently on March 9, 2021, Kallidus Inc was liquidated.
Further, on March 29, 2021, the shareholders of Skava have
approved to voluntarily liquidate the affairs of the Company.
Accordingly, Skava will complete the process of voluntary
liquidation pursuant to Section 59 of the Insolvency and
Bankruptcy Code of 2016 and applicable provisions of the
Companies Act, 2013.
During the current year, the Company completed three
business acquisitions through Infy Consulting Company Ltd (a
wholly-owned subsidiary of Infosys Consulting Holding AG)
and Infosys Nova Holdings LLC (a wholly-owned subsidiary
Infosys Annual Report 2020-21
Management’s discussion and analysis | 73
of Infosys Limited) to complement its digital offerings and
end-to-end customer experience offerings to customers by
acquiring 100% voting interests in:
(i) GuideVision, s.r.o. a ServiceNow Elite Partner in
Europe on October 1, 2020
(ii) Kaleidoscope Animations, Inc., a US-based product design
and development services company focused primarily on
medical devices on October 9, 2020
(iii) Beringer Commerce Inc. and Beringer Capital Digital
Group Inc., collectively known as Blue Acorn iCi, an Adobe
Platinum partner in the US, and a leader in digital customer
experience, commerce and analytics on October 27, 2020
These acquisitions were made for a total consideration of
` 1,407 crore, comprising a cash consideration of ` 1,307
crore and contingent consideration with an estimated fair
value of ` 100 crore as on the date of acquisition. Refer to
Note 2.1 of the Consolidated financial statements for further
details of these acquisitions.
Refer to Annexure 1 to the Board’s report for the statement pursuant
to Section 129(3) of the Companies Act, 2013 for the summary
of the financial performance of our subsidiaries. The audited
financial statements and related information of subsidiaries
will be available on our website, at www.infosys.com.
Other investments
We invest in the startup ecosystem to gain access to innovation
that, when combined with our services and solutions,
can benefit our clients. These investments are typically
minority equity positions in startup companies and / or
venture capital funds.
We have invested US$ 72 million to date in such assets since
inception and we have an uncalled capital commitment of
US$ 6 million. We have exited some of our investments either
because the investee company was sold to new shareholders
or because it ceased to have any further strategic value for us.
The carrying value of investments as of March 31, 2021 was
US$ 36 million. Our investments are fair valued in line with
our accounting policies.
As per Ind AS 109, Financial Instruments, all financial assets
and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at
transaction price. Financial assets are subsequently measured
at amortized cost, fair value through profit or loss or fair value
through other comprehensive income as the case may be.
For disclosures on financial assets including fair value
hierarchy and financial risk management, refer to Note 2.10
of the Standalone financial statements and the Consolidated
financial statements.
Our investments comprise mutual funds, fixed maturity
plan securities, tax-free bonds, non-convertible debentures,
certificates of deposit, commercial paper and government
securities. Certificates of deposit represent marketable
securities of banks and eligible financial institutions for
a specified time period and with a high credit rating by
domestic credit rating agencies. Investments made in
non-convertible debentures represent debt instruments issued
by government-aided institutions and financial institutions
with high credit rating. The majority of investments of the
Company are fair valued based on Level 1 or Level 2 inputs.
The Company invests after considering counterparty risks
based on multiple criteria including Tier I capital, capital
adequacy ratio, credit rating, profitability, NPA levels and
deposit base of banks and financial institutions. These risks
are monitored regularly as per its risk management program.
B. Trade receivables
On a standalone basis, trade receivables amounted to
` 16,394 crore and ` 15,459 crore as of March 31, 2021 and
March 31, 2020, respectively.
On a consolidated basis, trade receivables amounted to
` 19,294 crore and ` 18,487 crore as of March 31, 2021 and
March 31, 2020, respectively.
Revenues in excess of billings are referred to as unbilled
revenue. Trade receivables and unbilled revenue are typically
unsecured and are derived from revenue earned from
customers primarily located in the US. On a consolidated
basis, days sales outstanding was 71 days for the year ended
March 31, 2021, compared to 69 days in the previous year.
As per Ind AS 109, the Company uses the Expected Credit
Loss (ECL) model to assess any required allowances; and uses
a provision matrix to compute the ECL allowance for trade
receivables and unbilled revenues. In calculating ECL, we
have also considered credit reports and other related credit
information for our customers to estimate the probability of
default in future and have taken into account estimates of
possible effect from the COVID-19 pandemic.
The movement
and 2020 is as follows:
in ECL during
fiscals 2021
Particulars
Opening balance
Impairment loss
recognized
Amount written off
Translation
difference
Closing balance
in ` crore
Standalone
2021
580
2020
521
Consolidated
2021
705
2020
627
146
(106)
(5)
615
127
(89)
21
580
184
(123)
161
(100)
(14)
752
17
705
C. Cash and cash equivalents
On a standalone basis, balance in current and deposit accounts
stood at ` 13,792 crore as at March 31, 2021, as compared to
` 8,048 crore as at March 31, 2020. Deposits with financial
institutions stood at ` 3,820 crore as at March 31, 2021, as
compared to ` 5,514 crore as at March 31, 2020.
On a consolidated basis, balance in current and deposit
accounts stood at ` 20,069 crore as at March 31, 2021, as
compared to ` 12,288 crore as at March 31, 2020. Deposits
with financial institutions stood at ` 4,645 crore as at March 31,
2021, as compared to ` 6,361 crore as at March 31, 2020.
On a standalone basis, we have a restricted cash balance
of ` 154 crore as at March 31, 2021 as compared to ` 101
crore as at March 31, 2020 and on a consolidated basis, the
same was ` 504 crore as at March 31, 2021, as compared
to ` 396 crore as at March 31, 2020. These restrictions
are primarily on account of bank balances held as margin
74 | Management’s discussion and analysis
Infosys Annual Report 2020-21
money deposit against guarantees and cash balances held by
irrevocable trusts controlled by us. The bank balances in India
include both rupee accounts and foreign currency accounts.
The bank balances in overseas accounts are maintained
to meet the expenditure of the overseas operations and
regulatory requirements.
Our cash and cash equivalents comprise deposits with banks
and financial institutions with high credit ratings assigned
by international and domestic credit-rating agencies which
can be withdrawn at any point of time without prior notice
or penalty on principal. Ratings are monitored periodically
and the Company has considered the latest credit rating
information to the extent available as at the date of approval
of these financial statements.
D. Loans
The details of loans are as follows:
Particulars
Non-current
Loans to subsidiaries
Loans to employees
Current
Loans to subsidiaries
Loans to employees
Total
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
–
30
96
133
259
277
21
103
204
605
–
32
–
159
191
–
21
–
239
260
We provide personal loans and salary advances to
employees. Of the total loans and advances of ` 191 crore
given to employees on a consolidated basis, ` 159 crore is
recoverable in 12 months.
Loans to subsidiaries as at March 31, 2021 includes ` 21 crore
to Infosys China and ` 75 crore given to Infosys Shanghai.
As at March 31, 2020, loans to subsidiaries included ` 277
crore to Infosys Consulting Pte Ltd, ` 94 crore to Infosys
China and ` 9 crore given to Infosys Consulting S.R.L.
E. Other financial assets
The details of other financial assets are as follows:
Particulars
Non-current
Security deposits
Rental deposits
Net investment
in sub-lease of
right-of-use asset
Restricted deposits
Unbilled revenues
Others
Current
Security deposits
Rental deposits
Restricted deposits
Unbilled revenues
Interest accrued but
not due
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
45
164
348
–
11
45
46
169
398
–
–
–
49
217
350
42
399
84
50
221
398
55
–
13
1
10
1,826
2,139
1
4
1,643
1,973
6
30
2,016
3,173
8
27
1,795
2,796
553
441
620
474
Particulars
Foreign currency
forward and options
contracts
Net investment
in sub-lease of
right-of-use asset
Others(1)
Total
Standalone
2021
2020
Consolidated
2021
2020
178
19
188
62
37
482
5,839
35
282
5,011
38
339
7,551
35
260
6,194
(1) Includes inter-company receivables of ` 202 crore and ` 93 crore for
fiscal 2021 and 2020, respectively
Restricted deposits represent amounts deposited with
financial institutions to settle employee-related obligations
as and when they arise during the normal course of business.
Unbilled revenues are classified as financial assets as
right to consideration is unconditional and is due only
after passage of time.
Interest accrued but not due has increased on account of
increase in average investible base as compared to previous
year, resulting in movement in accrued interest.
Foreign currency forward and options contracts are entered
into to mitigate the risk of changes in exchange rates on
foreign currency exposures. The counterparty for these
contracts is generally a bank. These derivatives are measured
at fair value through profit or loss and the resulting exchange
gains or losses are included in other income.
6. Other assets
Particulars
Non-current
Capital advances
Defined benefit
assets
Deferred contract
cost
Prepaid expenses
Withholding taxes
and others
Unbilled revenues
Current
Payment to vendors
for supply of goods
Deferred contract
cost
Prepaid expenses
Unbilled revenues
Withholding taxes
and others
Other receivables
Total
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
141
9
73
64
687
175
310
143
10
51
759
–
141
19
143
78
705
195
310
151
101
87
777
–
131
129
141
145
40
874
3,904
1,832
3
7,933
11
736
3,856
1,356
–
7,361
65
1,160
4,354
2,091
3
9,095
33
968
4,325
1,583
28
8,508
Infosys Annual Report 2020-21
Management’s discussion and analysis | 75
Capital advances represent the amount paid in advance on
capital expenditure.
Unbilled revenues are classified as non-financial asset where
the right to consideration is dependent on completion of
contractual milestones.
Withholding taxes and others represent local taxes payable in
various countries in which we operate.
We provide for gratuity, a defined benefit retirement plan
(“Gratuity Plan”), covering eligible employees. The Gratuity
Plan provides a lump sum payment to vested employees
at retirement, death, incapacitation, or termination of
employment, of an amount based on the respective employee’s
salary and the tenure of employment.
7. Deferred tax assets / liabilities
Particulars
Deferred tax assets,
net
Deferred tax
liabilities, net
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
955
1,429
1,098
1,744
(511)
(556)
(875)
(968)
Deferred tax assets primarily comprise deferred taxes on
property, plant and equipment, lease liabilities, compensated
absences, allowances for trade receivables and credits related
to branch profit taxes. Deferred tax liability primarily
comprises branch profit taxes, SEZ Re-investment Reserve
and deferred tax on intangible assets.
Net deferred tax asset comprising deferred tax assets less
deferred tax liabilities has decreased primarily on account of
temporary differences on derivative financial instruments and
SEZ reinvestment reserve partially offset by deferred tax asset
on compensated absences and intangible assets.
8. Income tax assets / liabilities
Particulars
Income tax assets
(net)
Income tax liabilities
(net)
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
5,287
4,773
5,811
5,391
1,737
1,302
2,146
1,490
Our net profit earned from providing software development
and other services outside India is subject to tax in the
country where we perform the work. Most of our taxes paid
in countries other than India can be claimed as credit against
our tax liabilities in India.
9. Financial liabilities
The details of trade payables and other financial
liabilities are as follows:
Particulars
Non-current
Accrued
compensation to
employees
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
–
12
–
22
Particulars
Compensated
absences
Financial liability
under option
arrangements
Accrued expenses
Payable for
acquisition
of business –
Contingent
consideration
Other payables
Current
Trade payables
Unpaid dividends
Accrued
compensation to
employees
Accrued expenses
Retention monies
Payable for
acquisition
of business –
Contingent
consideration
Capital creditors
Compensated
absences
Foreign currency
forward and options
contracts
Payable by
controlled trusts
Other payables
Total
Standalone
2021
2020
Consolidated
2021
2020
91
32
97
38
–
163
5
–
–
–
5
693
569
621
–
86
69
121
5
1,562
33
1,529
30
2,645
33
2,852
30
2,915
2,944
13
2,264
2,646
30
4,019
4,475
13
2,958
3,921
72
5
340
151
254
75
371
219
280
1,640
1,497
2,020
1,832
9
461
56
491
460
10,180
–
603
188
199
490
129
9,514 15,549 14,140
Liabilities for accrued compensation to employees include the
provision for bonus, accrued salaries, incentives and retention
bonus payable to the staff.
Payable for acquisition of business represents contingent
consideration payable to the sellers of certain acquired entities
depending on the achievement of certain financial targets.
Financial liability under option arrangements represents
redemption liability towards Stater and HIPUS acquisitions
to purchase / sell the corresponding minority stake.
Accrued expenses represent amounts accrued for other
operational expenses. Retention monies represent
monies withheld on contractor payments, pending final
acceptance of their work.
Compensated absences are both accumulating and
non-accumulating in nature. The expected cost of
accumulating compensated absences is determined by
actuarial valuation.
76 | Management’s discussion and analysis
Infosys Annual Report 2020-21
10. Other liabilities
Particulars
Non-current
Withholding taxes
and others(1)
Deferred income –
government grants
Accrued defined
benefit plan liability
Deferred income
Others
Current
Unearned revenue
Client deposits
Withholding taxes
and others
Accrued defined
benefit plan liability
Deferred income –
government grant
on land use rights
Others
Total
in ` crore
Standalone
2021
2020
Consolidated
2021
2020
345
14
274
16
–
–
–
185
22
–
364
57
324
17
1
–
43
213
21
2
3,145
–
2,140
9
4,050
–
2,990
18
1,668
1,344
2,170
1,759
3
64
6
67
–
–
5,465
–
–
3,764
3
4
6,996
2
6
5,121
(1) The Company has deferred payment of certain taxes including
payroll taxes in various jurisdictions as permitted by the laws of those
jurisdictions on account of the COVID-19 pandemic.
in excess of earnings are classified
Invoicing
as unearned revenue.
Withholding and other taxes payable represent local taxes
payable in various countries in which we operate.
We provide for provident fund to eligible employees of
Infosys, which is a defined benefit plan as the Company
has an obligation to make good the shortfall, if any,
between the return from the investments of the trust and
the notified interest rate. The plans provide for periodic
payouts after retirement or for a lumpsum payment as set
out in rules of each fund and includes death and disability
benefits. These administered rates are determined annually
predominantly considering the social and economic factors
in the past years. The actuary has provided a valuation for
provident fund liabilities on the basis of guidance issued by
the Actuarial Society of India.
The Company operates defined benefit pension plan in
certain overseas jurisdictions, in accordance with local laws.
These plans are managed by third-party fund managers.
The plans provide for periodic payouts after retirement or
for a lumpsum payment as set out in rules of each fund
and includes death and disability benefits. Liabilities with
regard to these defined benefit plans are determined by
actuarial valuation, using the projected unit credit method.
These defined benefit plans expose the Company to actuarial
risks, such as longevity risk, currency risk, interest rate
risk and market risk.
Refer to Note 2.20 of the Standalone and Consolidated financial
statements in this Annual Report for details of the various
defined benefit plans of the Company.
The Code on Social Security, 2020 (“the Code”) relating to
employee benefits during employment and post-employment
benefits received Presidential assent in September 2020.
The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect
has not been notified. The Company will assess the impact
of the Code when it comes into effect.
11. Provisions
Provision for post-sales client support is towards likely cost for
providing client support to fixed-price and fixed-timeframe
contracts. On a standalone basis, these provisions amounted
to ` 661 crore as at March 31, 2021, as compared to ` 506
crore as at March 31, 2020. On a consolidated basis,
provision for post-sales client support amounted to ` 713
crore as at March 31, 2021, as compared to ` 572 crore
as at March 31, 2020.
12. Leases
On a standalone basis, addition to right-of-use (ROU) assets
was ` 1,109 crore. This comprises ` 1,017 crore in land and
buildings, and ` 92 crore towards computer equipment. In
the previous year, we had additions to ROU assets of ` 787
crore. This comprised ` 738 crore in land and ` 49 crore
towards computer equipment.
On a consolidated basis, addition to ROU assets was ` 1,394
crore. This comprises ` 1,241 crore in land and buildings,
` 140 crore in computer equipment and ` 13 crore in vehicles.
In the previous year, we had additions to ROU assets of ` 1,120
crore. This comprised ` 1,065 crore in land and buildings,
` 49 crore in computer equipment, and ` 6 crore in vehicles.
IV. Results of our operations
The function-wise classification of the Standalone Statement of Profit and Loss is as follows:
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses
Total operating expenses
2021
85,912
55,541
30,371
3,676
4,559
8,235
Year ended March 31,
%
100.0
64.6
35.4
4.3
5.3
9.6
2020
79,047
52,816
26,231
3,814
4,526
8,340
in ` crore
%
100.0
66.8
33.2
4.8
5.7
10.6
Infosys Annual Report 2020-21
Management’s discussion and analysis | 77
Particulars
Operating profit
Finance cost
Other income, net
Profit before tax
Tax expense
Profit for the year
2021
22,136
126
2,467
24,477
6,429
18,048
Year ended March 31,
%
25.8
0.1
2.8
28.5
7.5
21.0
2020
17,891
114
2,700
20,477
4,934
15,543
The function-wise classification of the Consolidated Statement of Profit and Loss is as follows:
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses
Total operating expenses
Operating profit
Finance cost
Other income, net
Profit before tax
Tax expense
Profit after tax
Non-controlling interests
Profit attributable to the owners of the Company
2021
1,00,472
65,413
35,059
4,627
5,810
10,437
24,622
195
2,201
26,628
7,205
19,423
72
19,351
Year ended March 31,
%
100.0
65.1
34.9
4.6
5.8
10.4
24.5
0.2
2.2
26.5
7.1
19.4
0.1
19.3
2020
90,791
60,732
30,059
4,711
5,974
10,685
19,374
170
2,803
22,007
5,368
16,639
45
16,594
1. Revenue
The growth in our revenues in fiscal 2021 from fiscal 2020 is as follows:
%
22.6
0.1
3.4
25.9
6.2
19.7
in ` crore
%
100.0
66.9
33.1
5.2
6.6
11.8
21.3
0.2
3.1
24.2
5.9
18.3
0.1
18.2
in ` crore
Particulars
Revenue
Standalone
Consolidated
2021
85,912
2020 % change
8.7
79,047
2021
1,00,472
2020 % change
10.7
90,791
The increase in revenues was primarily attributable to an increase in digital revenues, deal wins including large deal wins and
volume increases across most of the segments.
The revenues from digital and core services for fiscals 2021
and 2020 are as follows:
Particulars
Digital revenue
Core revenue
in ` crore
Consolidated
2021
48,687
51,785
2020 % change
36.7
(6.1)
35,617
55,174
We have evaluated the impact of COVID-19 resulting from
(i) the possibility of constraints to render services which may
require revision of estimations of costs to complete the contract
because of additional efforts ; (ii) onerous obligations ; (iii)
penalties relating to breaches of service-level agreements, and
(iv) termination or deferment of contracts by customers. We
have concluded that the impact of COVID-19 was not material
based on these estimates. Due to the nature of the pandemic,
the Company will continue to monitor developments to
identify significant uncertainties relating to revenue in future
Revenue growth in reported terms includes impact of
currency fluctuations. We, therefore, additionally report the
revenue growth in constant currency terms, which represents
the real growth in revenue excluding the impact of currency
fluctuations. We calculate constant currency growth by
comparing current period revenues in respective local
currencies converted to INR using prior-period exchange
rates and comparing the same to our prior-period reported
revenues. Our revenues in reported currency terms for fiscal
2021 is US$ 13,561 million, a growth of 6.1%. Our revenues
for fiscal 2021 in constant currency grew by 5%.
We added 475 new customers (gross) during fiscal 2021 as
compared to 376 new customers (gross) during fiscal 2020.
For fiscals 2021 and 2020, 96.2% and 97.5%, respectively, of
our revenues came from repeat business, which we define as
revenues from a client that also contributed to our revenues
during the prior fiscal.
On a consolidated basis, for the year ended March 31,
2021, approximately 97.1% were export revenues whereas
2.9% were domestic revenues, while for the year ended
March 31, 2020, 97.4% were export revenues whereas 2.6%
were domestic revenues.
78 | Management’s discussion and analysis
Infosys Annual Report 2020-21
The composition of currency-wise revenues for the years
ended March 31, 2021 and March 31, 2020 was as follows:
in %
The percentage of our revenues by location from billable IT
services professionals for fiscals 2021 and 2020 is as follows:
in %
Currency
US Dollar
UK Pound Sterling
Euro
Australian Dollar
Others
Total
Consolidated
2021
66.5
4.6
13.4
6.9
8.6
100.0
2020
67.5
4.9
12.4
6.8
8.4
100.0
Our revenues are generated principally from services
provided either on a time-and-material, unit-of-work,
fixed-price, or fixed-timeframe basis. Revenue on time-and-
material and unit-of-work-based contracts, are recognized as
the related services are performed. Fixed-price maintenance
revenue is recognized ratably either on a straight-line
basis when services are performed through an indefinite
number of repetitive acts over a specified period or using
a percentage-of-completion method when the pattern of
benefits from the services rendered to the customer and our
costs to fulfil the contract is not even through the period of
contract because the services are generally discrete in nature
and not repetitive. Revenue from other fixed-price, fixed-
timeframe contracts, where the performance obligations
are satisfied over time is recognized using the percentage-
of-completion method. Revenue from licenses where the
customer obtains a “right to use” the licenses is recognized
at the time the license is made available to the customer.
Revenue from licenses where the customer obtains a “right
to access” is recognized over the access period. Where the
license is required to be substantially customized as part
of the implementation service, the entire arrangement fee
for license and implementation is considered to be a single
performance obligation and the revenue is recognized using
the percentage-of-completion method as the implementation
is performed. The percentage of revenue from fixed-price
contracts for the years ended March 31, 2021 and March 31,
2020 is approximately 50%.
Our revenues are segmented into onsite and offshore revenues.
Onsite revenues are for those services which are performed at
client locations or at our development centers outside India,
while offshore revenues are for services which are performed
at our global development centers in India.
Particulars
Onsite revenue
Offshore revenue
Total
Consolidated
2021
52.1
47.9
100.0
2020
54.8
45.2
100.0
The proportion of work performed at our facilities and at client
sites varies from period to period. The services performed
onsite typically generate higher revenues per capita, but at
lower gross margins in percentage as compared to the services
performed at our own facilities in India. Therefore, any
increase in the onsite effort impacts our margins.
The reduction in onsite revenue mix is mainly on account of
reduced onsite effort mix which is significantly on account
of travel restrictions in the year to onsite locations due to
pandemic and client focus on cost take-outs.
The details of billable hours expended for onsite and
offshore on our IT services professionals for fiscals 2021 and
2020 are as follows:
Particulars
Onsite effort
Offshore effort
Total
in %
Consolidated
2021
25.8
74.2
100.0
2020
28.1
71.9
100.0
Revenues and gross profits are also affected by employee
utilization rates. We define employee utilization for IT
services as the proportion of total billed person months to
total available person months, excluding sales, administrative
and support personnel.
The utilization
professionals are as follows:
rates of billable
services
IT
Particulars
Including trainees
Excluding trainees
in %
Consolidated
2021
80.8
84.7
2020
80.3
84.0
IT services, wherever mentioned above, represent services
excluding business process management services and
products and platforms business.
The break-up of revenues from software and professional services and products and platforms is as follows:
Particulars
Software and professional services
Software products and platforms
Total revenue from operations
Standalone
2021
85,669
243
85,912
2020
78,809
238
79,047
Consolidated
2021
93,387
7,085
1,00,472
in ` crore
2020
85,260
5,531
90,791
Refer to the ‘Segmental profitability’ section in this report for more details on the analysis of segment revenues.
Revenue per employee has increased from US$ 54,142 in fiscal 2020 to US$ 55,229 in fiscal 2021 on a consolidated basis.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 79
2. Expenditure
Cost of sales – standalone
Particulars
Revenues
Cost of sales
Salaries and bonus
Cost of technical sub-contractors
Travelling cost
Cost of software packages for own use
Third-party items bought for service delivery to clients
Communication cost
Short-term leases
Provisions / (reversals) for post-sales client support
Depreciation and amortization expenses
Repairs and maintenance
Others
Total cost of sales
Cost of sales – consolidated
Particulars
Revenues
Cost of sales
2021
85,912
40,602
9,527
429
933
1,116
224
9
47
2,321
305
28
55,541
%
100.0
47.2
11.1
0.5
1.1
1.3
0.3
–
–
2.7
0.4
–
64.6
2021
1,00,472
%
100.0
Salaries and bonus
Cost of technical sub-contractors
Travelling cost
Cost of software packages for own use
Third-party items bought for service delivery to clients
Consultancy and professional charges
Communication cost
Short-term leases
Provisions for post-sales client support
Depreciation and amortization expenses
Repairs and maintenance
Others
Total cost of sales
49,444
7,084
482
1,184
3,002
61
333
31
39
3,267
479
7
65,413
49.2
7.1
0.5
1.2
3.0
0.1
0.3
–
–
3.2
0.5
–
65.1
2020
79,047
38,277
8,446
1,726
809
842
201
34
4
2,144
333
–
52,816
2020
90,791
45,477
6,712
2,045
1,010
1,667
50
300
65
–
2,893
501
12
60,732
in ` crore
% Growth %
8.7
100.0
48.4
10.7
2.2
1.0
1.1
0.3
–
–
2.7
0.4
–
66.8
6.1
12.8
(75.1)
15.3
32.5
11.4
(73.5)
1,075
8.3
(8.4)
–
5.2
in ` crore
% Growth %
10.7
100.0
50.1
7.4
2.2
1.1
1.8
0.1
0.3
0.1
–
3.2
0.6
–
66.9
8.7
5.5
(76.4)
17.2
80.1
22.0
11.0
(52.3)
–
12.9
(4.4)
(41.7)
7.7
On a standalone basis, cost of sales was 64.6% of revenues,
compared to 66.8% during the previous year. On a
consolidated basis, cost of sales was 65.1% of revenues,
compared to 66.9% during the previous year. The cost of
efforts, comprising employee cost and cost of technical
sub-contractors, has decreased as a percentage of revenue
from 59.1% in fiscal 2020 to 58.3% in fiscal 2021 on a
standalone basis and from 57.5% in fiscal 2020 to 56.3%
in fiscal 2021 on a consolidated basis. The cost of efforts
has decreased mainly on account of improvement in offshore
mix partially offset by compensation increase effective Q4
fiscal 2021 and higher variable payouts during fiscal 2021.
The decrease in travel costs is on account of reduced travel
and visa costs on account of pandemic.
On a standalone basis, the cost of technical sub-contractors
included ` 3,691 crore towards the purchase of services from
subsidiaries for the year ended March 31, 2021, as against
` 2,824 crore in the previous year. The details of such related
party transactions are available in Note 2.23 to the Standalone
financial statements in the Annual Report.
On both standalone and consolidated basis, the travelling
cost representing the cost of travel included in cost of sales
constituted approximately 0.5% and 2.2% of total revenue
for the years ended March 31, 2021 and March 31, 2020,
respectively. The decrease in travel costs is on account of
reduced travel and visa costs on account of pandemic.
Cost of software packages primarily represents the cost of
software packages and tools procured for our internal use.
On a standalone basis, the cost of software packages was 1.1%
of revenues, compared to 1.0% during the previous year.
On a consolidated basis, the cost of software packages was
1.2% and 1.1% of total revenue for the years ended March 31,
2021 and March 31, 2020 respectively.
Third-party items bought for service delivery to clients
include software and hardware items.
A large part of our revenues is generated from software
development centers in India. We use high-end communication
tools to establish real-time connections with our clients.
80 | Management’s discussion and analysis
Infosys Annual Report 2020-21
On both standalone and consolidated basis, the communication
costs represent approximately 0.3% of the revenues for each of
the years ended March 31, 2021 and March 31, 2020.
Under Ind AS 116, we recognized a ROU asset and a
corresponding lease liability for all lease arrangements in
which we are a lessee, except for leases with a term of 12
months or less (short-term leases). For these short-term
leases, we recognized the lease payments as an operating
expense on a straight-line basis over the term of the lease.
The Company provides its clients with a fixed-period, post-sales
support on all its fixed-price, fixed-timeframe contracts.
The Company estimates such costs based on historical experience
and estimates are reviewed on a periodic basis for any material
changes in assumptions and likelihood of occurrence.
On a standalone basis, we provided ` 2,321 crore and ` 2,144
crore towards depreciation and amortization, representing
2.7% of total revenues for each of the years ended March 31,
2021 and March 31, 2020, respectively.
On a consolidated basis, we provided ` 3,267 crore and
` 2,893 crore towards depreciation and amortization,
representing 3.2% of total revenues for each of the years
ended March 31, 2021 and March 31, 2020, respectively.
On a standalone and consolidated basis, repairs and
maintenance represent approximately 0.4% and 0.5% of the
revenues, respectively, which was 0.4% and 0.6% at standalone
and consolidated level, respectively, in the previous year.
Gross profit
On a standalone basis, the gross profit during the year was ` 30,371
crore, representing 35.4% of revenues, compared to ` 26,231
crore, representing 33.2% of revenues in the previous year.
On a consolidated basis, the gross profit during the year
was ` 35,059 crore, representing 34.9% of revenues,
compared to ` 30,059 crore, representing 33.1% of revenues
in the previous year.
The gross margins for fiscal 2021 were increased on account
of reduction in travelling cost and decrease in cost of efforts
partially offset by an increase in third-party items bought for
service delivery to customer.
Selling and marketing expenses
On a standalone basis, we incurred selling and marketing
expenses at 4.3% of our total revenues in the year ended
March 31, 2021, compared to 4.8% of our total revenues
in the year ended March 31, 2020. Selling and marketing
expenses primarily comprise employee costs, travelling
costs and branding and marketing costs. All other expenses,
excluding employee costs, amounted to 0.5% of revenues
during the year, which was 1.1% in the previous year.
On a consolidated basis, we incurred selling and marketing
expenses at 4.6% of our total revenues in the year ended
March 31, 2021, as compared to 5.2% in the year ended
March 31, 2020. All other expenses, excluding employee costs,
amounted to 0.6% and 1.2% of our total revenues in the years
ended March 31, 2021 and March 31, 2020, respectively.
The selling and marketing expenses have reduced as a
percentage of revenue during fiscal 2021 from fiscal 2020,
mainly on account of a decrease in travelling costs and
branding and marketing costs.
General and administration expenses
On a standalone basis, our general and administration
expenses amounted to 5.3% of our total revenues in the
current year and 5.7% in previous year. All other expenses,
excluding employee costs, were 3.8% of revenues during the
year, as compared to 4.2% during the previous year.
On a consolidated basis, our general and administration
expenses amounted to 5.8% of our total revenues in the
current year and 6.6% in the previous year. All other expenses,
excluding employee costs, were 3.8% of revenues during the
year, as compared to 4.6% during the previous year.
The general and administration expenses have reduced as a
percentage of revenue during fiscal 2021 from fiscal 2020,
mainly on account of a decrease in travelling costs, repairs
and maintenance, consulting and professional expenses
and power and fuel.
Corporate social responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company,
meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding
three financial years on CSR activities. The areas for CSR
activities are eradication of hunger and malnutrition,
promoting education, art and culture, healthcare, destitute
care and rehabilitation, environment sustainability, disaster
relief, COVID-19 relief and rural development projects.
A CSR committee has been formed by the Company as per
the Act. The funds were primarily allocated to a corpus
and utilized through the year on these activities which are
specified in Schedule VII of the Companies Act, 2013:
A) Gross amount required to be spent by the Company
during the year is ` 372 crore.
B) Amount spent during the year on:
Particulars
In cash
Yet to be
paid in cash
in ` crore
Total
1. Construction /
acquisition of any asset
–
2. On purposes
other than (1) above(1)
375
–
–
–
375
(1) Includes ` 50 crore towards unspent CSR account as this pertains to
ongoing projects. The unspent amount will be transferred to Unspent
CSR account within 30 days from the end of the financial year, in
accordance with the CSR rules.
Consequent to the Companies (Corporate Social Responsibility
Policy) Amendment Rules, 2021 (“the Rules”), the Company
intends to transfer its CSR capital assets created prior to
January 2021 to a controlled subsidiary (referred to as “the
Subsidiary”) to be established in accordance with Section 8 of
the Companies Act, 2013 for charitable objects. The transfer
will be undertaken upon obtaining the required approvals
from regulatory authorities.
The carrying amount of the capital asset amounting to ` 283
crore has been impaired and included as CSR expense in
the Standalone financial statements because the Company will
not be able to recover the carrying amount of the asset from
the Subsidiary on account of prohibition on payment of
dividend by this Subsidiary.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 81
The Subsidiary will be included in the Consolidated financial
statements of the Company commencing in the period
from formation because the Company will have the power
to direct all of the Subsidiary’s relevant activities, which
affect returns and the Company will be exposed to any
future financial support which may be required by the
Subsidiary. The Company has evaluated the impact of the
Rules on the carrying amount of the capital asset of ` 283
crore in the Consolidated financial statements as at March 31,
2021, and concluded that the recoverable amount of
capital asset, estimated based on future cash flows from
continuing use of the capital asset, is expected to exceed the
carrying amount, including in the period subsequent to the
transfer to the Subsidiary.
3. Operating profits
During the year, on a standalone basis, we earned an operating
profit of ` 22,136 crore, representing 25.8% of total revenues,
compared to ` 17,891 crore, representing 22.6% of total
revenues, during the previous year.
During the year, on a consolidated basis, we earned an
operating profit of ` 24,622 crore, representing 24.5% of total
revenues, compared to ` 19,374 crore, representing 21.3% of
total revenues, during the previous year.
The increase in operating profit as a percentage of revenue
for the current year as compared to the previous year was
primarily attributable to an increase in gross profit as a
percentage of revenue and decrease in selling and marketing,
and general and administration expenses as a percentage of
revenue during the same period.
4. Other income and finance cost
Our other income and finance cost for fiscals 2021 and 2020 are as follows:
Particulars
Other income
Finance cost
Standalone
Consolidated
2021
2,467
126
2020 % change
(8.6)
2,700
10.5
114
2021
2,201
195
2020 % change
(21.5)
2,803
14.7
170
in ` crore
On a standalone basis, other income for fiscal 2021 primarily
includes income from investments of ` 1,474 crore, gain on
investments of ` 150 crore, foreign exchange gain of ` 558
crore on forward and options contracts partially offset by
foreign exchange loss of ` 279 crore on translation of other
assets and liabilities. Additionally, in the current year, the
Company received ` 321 crore of dividend from its subsidiary.
During the previous year, other income primarily included
income from investments of ` 1,502 crore, gain on
investments of ` 229 crore, foreign exchange gain of ` 1,056
crore on translation of other assets and liabilities, partially
offset by a foreign exchange loss of ` 528 crore on forward
and options contracts.
On a consolidated basis, other income for fiscal 2021
primarily includes income from investments of ` 1,615 crore,
gain on investments of ` 156 crore, foreign exchange gain of
` 556 crore on forward and options contracts partially offset
by foreign exchange loss of ` 346 crore on translation of other
assets and liabilities.
During the previous year, other income primarily included
income from investments of ` 1,613 crore, gain on
investments of ` 224 crore, foreign exchange gain of ` 1,023
crore on translation of other assets and liabilities partially
offset by a foreign exchange loss of ` 511 crore on forward
and options contracts.
Interest income in fiscal 2021 has declined as compared to
fiscal 2020 primarily due to a decrease in yield on investment.
On a consolidated basis, interest income on income tax
refund for fiscal 2021 is ` 4 crore compared to ` 259
crore for fiscal 2020.
We use foreign exchange forward and options contracts to hedge
our exposure against movements in foreign exchange rates.
Finance cost is on account of leases. The lease payments are
discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases.
5. Provision for tax
We have provided for our tax liability both in India
and overseas. The applicable Indian corporate statutory
tax rate for both the years ended March 31, 2021 and
March 31, 2020 is 34.94%.
In India, we have benefitted from certain tax incentives that
the Company has received for the export of software from
units registered under the Software Technology Park (STP)
Scheme and we continue to benefit from certain tax incentives
for the units registered under the SEZ Act, 2005. However,
the income tax incentives provided by the Government of
India for STP units have expired, and the income from all
of our STP units are now taxable. SEZ units, which began
providing services on or after April 1, 2005, are eligible for a
deduction of 100% of profits or gains derived from the export
of services for the first five years from the financial year in
which the unit has commenced the provision of services and
50% of such profits or gains for further five years. Up to
50% of such profits or gains for further five years thereafter
is subject to the creation of a SEZ Re-investment Reserve
out of the profit of the eligible SEZ units and utilization of
such reserve by the Company for acquiring new plant and
machinery for the purpose of its business as per the provisions
of the Income-tax Act, 1961. In the event, the Company is
not able to utilize the SEZ reserve for investment in plant and
machinery within the timeline specified under the Income-tax
Act, 1961, the Company will have to pay tax on the unutilized
reserve following the expiry of the year specified. This would
result in increase in tax cost.
82 | Management’s discussion and analysis
Infosys Annual Report 2020-21
As a result of these tax incentives, a portion of pre-tax income
has not been subject to income tax. These tax incentives
resulted in a decrease in income tax expense by ` 2,468 crore
on a standalone basis and ` 2,569 crore on a consolidated
basis for the year ended March 31, 2021, and ` 2,637 crore
on a standalone basis and ` 2,718 crore on a consolidated
basis for the year ended March 31, 2020.
Particulars
Standalone
2021
2020
Consolidated
2021
2020
Income tax expense
(in ` crore)
Effective tax rate (in %)
6,429
26.3
4,934
24.1
7,205
27.1
5,368
24.4
On a standalone basis, the effective tax rate (based on profit
before tax) increased to 26.3% in fiscal 2021, as compared to
24.1% in fiscal 2020. On a consolidated basis, the effective
tax rate for fiscal 2021 and fiscal 2020 was 27.1% and 24.4%,
respectively. Effective tax rate is generally influenced by various
factors, including differential tax rates, non-deductible expenses,
exempt non-operating income, overseas taxes, benefits from
SEZ units, tax reversals and provisions pertaining to prior
periods, and other tax deductions. The increase in effective tax
rate from fiscal 2020 to fiscal 2021 was mainly due to decrease
in tax benefits from SEZ units, partially offset by reduction in
overseas taxes as a percentage of profit before income tax.
During the current year, on a consolidated basis, the tax expense
includes reversal of provisions of ` 360 crore made in earlier
periods, partially offset by an additional tax provision of ` 12
crore pertaining to earlier periods. For the previous year, the tax
reversals comprise a reversal of provisions of ` 508 crore made
in earlier periods, partially offset by an additional tax provision
of ` 129 crore pertaining to prior periods.
On a standalone basis, the tax expense includes reversal of
provisions of ` 298 crore made in earlier periods. For the previous
year, the tax reversals comprise a reversal of provisions of ` 368
crore made in earlier periods, partially offset by an additional tax
provision of ` 70 crore pertaining to earlier periods.
These reversals pertains to prior periods on account of
adjudication of certain disputed matters in favor of the
Company and upon filing of tax return, across various
jurisdictions and changes to tax regulation. The additional
provision pertaining to prior periods is primarily due to filing
of tax returns in various jurisdiction.
Refer to Note 2.22, ‘Contingent liabilities and commitments’,
in the Consolidated and Standalone financial statements in the
Annual Report for disclosures on claims against the Company
not acknowledged as debts.
6. Net profit after tax
On a standalone basis, our net profit increased by 16.1%
to ` 18,048 crore for the year ended March 31, 2021 from
` 15,543 crore in the previous year. This represents 21.0%
and 19.7% of total revenue for the years ended March 31,
2021 and March 31, 2020, respectively.
The increase in net profit as a percentage of revenues for fiscal
2021 as compared to fiscal 2020 was primarily attributable
to the increase in operating profit by 3.2% partially offset by
the decrease in other income and finance cost by 0.6% as
a percentage of revenue and the increase in tax expense by
1.3% as a percentage of revenue.
On a consolidated basis, our net profit increased by 16.6%
to ` 19,351 crore for the year ended March 31, 2021 from
` 16,594 crore in the previous year. This represents 19.3%
and 18.2% of total revenue for the years ended March 31,
2021 and March 31, 2020, respectively.
The increase in net profit as a percentage of revenues for fiscal
2021 as compared to fiscal 2020 was primarily attributable
to the increase in operating profit by 3.2% partially offset by
the decrease in other income and finance cost by 0.9% as
a percentage of revenue and the increase in tax expense by
1.2% as a percentage of revenue.
7. Earnings per share (EPS)
The details of change in EPS on standalone and consolidated basis are as follows:
Particulars
Basic
Diluted
Standalone
Consolidated
2021 (`)
42.37
42.33
2020 (`) % increase
16.6
16.5
36.34
36.32
2021 (`)
45.61
45.52
2020 (`) % increase
17.0
17.0
38.97
38.91
The weighted average equity shares used in computing earnings per equity share are as follows:
Particulars
Basic
Diluted
Standalone
2021
425,94,38,950
426,30,92,514
2020
427,70,30,249
427,98,08,826
Consolidated
2021
424,24,16,665
425,07,32,467
2020
425,77,54,522
426,51,44,228
8. Segmental profitability
The Company’s operations predominantly relate to providing end-to-end business solutions to enable clients to enhance
performance of their business. Business segments of the Company are primarily enterprises in Financial Services and Insurance;
enterprises in Manufacturing; enterprises in Retail, Consumer Packaged Goods and Logistics; enterprises in the Energy, Utilities,
Resources and Services; enterprises in Communication, Telecom OEM and Media; enterprises in Hi-Tech; enterprises in Life
Sciences and Healthcare; and all other segments. All other segments represent the operating segments of businesses in India,
Japan, China, Infosys Public Services and other enterprises in public services. This is discussed in detail in Note 2.24 to the
Consolidated financial statements in this Annual Report.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 83
Business segments – consolidated
Particulars
Financial
Services
Retail Communication
Manufacturing
Hi-Tech
Life
Sciences
All other
segments
in ` crore
Total
Energy,
Utilities,
Resources
and Services
Segmental revenues
2021
2020
Growth %
Segmental operating income
32,583
28,625
13.8
14,745
14,035
5.1
2021
2020
Growth %
Segmental operating margin (%)
8,946
7,306
22.4
5,117
4,212
21.5
2021
2020
27.5
25.5
34.7
30.0
12,628
11,984
5.4
12,539
11,736
6.8
2,795
2,424
15.3
22.1
20.2
3,552
3,216
10.5
28.3
27.4
9,447
9,131
3.5
2,563
2,059
24.5
27.1
22.6
8,560
6,972
22.8
2,454
1,604
53.0
28.7
23.0
6,870
5,837
17.7
2,156
1,431
50.7
31.4
24.5
3,100 1,00,472
90,791
2,471
10.7
25.4
306
64
375.7
27,889
22,316
25.0
9.9
2.6
27.8
24.6
The following graph sets forth our revenue by geography:
55,807 (61.5%)
10,703 (11.8%)
2,365 (2.6%)
21,916 (24.1%)
61,640 (61.3%)
11,630 (11.6%)
2,899 (2.9%)
24,303 (24.2%)
Growth in %
2021
1,00,472
2020
90,791
North America - 10.5%
India - 22.6%
Europe - 10.9%
Rest of the World - 8.6%
Total growth
10.7%
Overall segment profitability has increased primarily on
account of the benefit of rupee depreciation against US dollar,
lower travel and visa costs and cost optimization partially
offset by increase in employee compensation.
9. Liquidity
Our principal source of liquidity are cash and cash equivalents
and cash flow that we generate from operations. We have no
outstanding borrowings. We believe our working capital is
sufficient for our requirements.
Our growth has been financed largely through cash
generated from operations.
Standalone
2021
2020
Consolidated
2021
2020
19,902
15,572 23,224
17,003
Particulars
Net cash generated
by operating
activities
Net cash used in
investing activities
Net cash used in
financing activities
Our cash flows are robust and our operating cash flows have
increased in fiscal 2021 as compared to fiscal 2020 mainly
on account of increase in net profit adjusted for non-cash
items, better working capital management partially offset by
higher income tax payments. Our liquidity position could
be adversely affected if our ability to bill and / or collect
from our customers on time is impacted due to COVID-19
disruptions; either due to disruptions on Indian operations
or at the customers’ end.
Consolidated cash and investments of ` 38,660 crore
comprise cash and cash equivalents, current and
non-current investments excluding investments in unquoted
equity and preference shares, compulsorily convertible
debentures and others.
Capital Allocation Policy
Refer to the Board’s report in this Annual Report for
details on our Capital Allocation Policy reviewed and
approved on July 12, 2019.
10. Related party transactions
These have been discussed in detail in Note 2.23 to the
Standalone financial statements in this Annual Report.
11. Events occurring after Balance Sheet date
There were no significant events that occurred after the Balance
Sheet date apart from the ones mentioned in ‘Material changes
and commitments affecting financial position between the
end of the fiscal and date of the report’ in the Board’s report.
12. Key financial ratios
In accordance with the SEBI (Listing Obligations and
Disclosure Requirements) (Amendment) Regulations, 2018,
the Company is required to give details of significant changes
(change of 25% or more as compared to the immediately
previous financial year) in key sector-specific financial ratios.
The Company has identified the following ratios as
key financial ratios:
Market
capitalization to
revenues (times)
Price / Earnings
(times)
Days sales
outstanding(1)
Standalone
2021
2020
Consolidated
2021
2020
NA
NA
–
NA
NA
–
5.8
3.0
30.0
16.5
71
69
(6,309)
(116)
(7,456)
(239)
Particulars
(9,566) (17,391)
(9,786) (17,591)
84 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Particulars
Cash and
investment(2) as a %
of total assets
Revenue growth (%)
Operating margin
(%)
Net profit margin
(%)
Basic EPS (`)
Standalone
2021
2020
Consolidated
2021
2020
32.7
8.7
26.3
8.1
35.7
10.7
29.4
9.8
25.8
22.6
24.5
21.3
21.0
42.37
19.7
36.34
19.3
45.61
18.2
38.97
(1) The Company does not track DSO at a standalone level.
(2) Includes cash and cash equivalents and investments, excluding
investments in unquoted equity, preference shares, compulsorily
convertible debentures and others.
Ratios where there has been a significant change from
fiscal 2020 to fiscal 2021
Revenue growth, operating margin, net profit margin as
well as change in basic EPS have been explained in the
relevant sections above.
The details of return on net worth at standalone and
consolidated levels are as follows:
Particulars
Return on net
worth (%)
Standalone
2021
2020
Consolidated
2021
2020
27.0
24.9
27.3
25.5
Return on net worth is computed as net profit by average
net worth. Net profit has increased from ` 16,594 crore to
` 19,351 crore on a consolidated basis and from ` 15,543
crore to ` 18,048 crore on a standalone basis for the
reasons explained above.
V. Outlook, risks and concerns
This section lists forward-looking statements that involve risks
and uncertainties. Our actual results could differ materially
from those anticipated in these statements as a result of certain
factors. Our outlook, risks and concerns are as follows:
Global health pandemic from COVID-19
related risks
The COVID-19 pandemic is a global humanitarian and
health crisis, which continues to impact key geographies
that we operate in, with many countries reporting second
and third waves of infections. The actions taken by various
governments to contain the pandemic, such as closing of
borders and lockdown restrictions, have resulted in significant
disruption to people and businesses. While vaccines have
been made available, there are delays in vaccinating larger
populations, increased instances of variants and infections,
and consequential stress on the health sector. Consequently,
market demand in some segments and supply chains have
been affected. India, where most of our operations are located,
is experiencing a second wave of infections, including with
new variants of the COVID-19 virus. There is a marked
increase in the number of cases across regions where our
development centers are located, and a small percentage
of our employees or their families have been adversely
affected. We have initiated several interventions to help our
employees and their families, including establishing COVID
Care Centers and vaccination centers, and providing them
access to medical care facilities. However, the continued stress
on the medical infrastructure and increasing cases in the
country may impact the health and safety of our employees.
In addition, India may experience future waves, which may
further stress the healthcare ecosystem. This may impact our
ability to service our customer requirements on time, as a
portion of our employees may be absent from work owing to
health issues or to tend to their families.
The COVID-19 pandemic has impacted, and may further
impact, all of our stakeholders – employees, clients, vendors,
investors and communities we operate in. During fiscal 2021,
the impact on revenue due to supply and demand risks we
experienced from the COVID-19 pandemic was not significant.
The COVID-19 pandemic has heightened several other
risks that are described in this section. Some of the specific
consequent risks related to the occurrence of the COVID-19
pandemic that have materialized include the following:
• Some of our clients’ business operations have been
negatively impacted due to the economic downturn,
resulting in postponement, termination or suspension
of some ongoing projects in the initial period of the
financial year.
• Our ability to continue to deliver service delivery
obligations while our employees work from home is
sometimes constrained by contractual terms with our
clients and is therefore dependent on receiving the
requisite approvals from them on time.
• Restrictions on travel have marginally impacted our ability
to assign and deploy people at required locations and
times to deliver contracted services, thereby impacting
our revenue and / or profitability.
• Our profitability has been marginally impacted as some
clients have sought price reductions or discounts.
• Lower profitability and prolonged payment term requests
from clients had marginal negative impact on our
cash flows.
• Our business continuity is marginally impacted as key
geographies in which we operate imposed a lockdown
and / or some of our development centers had to be
temporarily shut down due to COVID-19 cases found in
our campuses.
• We incurred unanticipated costs in ensuring our offices
are safe and hygienic workplaces for our employees; and
to enable employees to work from home.
• We incurred additional costs in procuring and deploying
hardware assets, technology infrastructure, information
security infrastructure and data connectivity charges for
remote working.
While the above-mentioned risks have materialized to varied
extent in the last financial year, their impact may continue in
the next financial year as well. In addition to the above, other
consequent risks related to the COVID-19 pandemic that may
materialize in future are as follows:
Infosys Annual Report 2020-21
Management’s discussion and analysis | 85
• The financial stability of our clients may get affected or
they may file for bankruptcy, jeopardizing our ability to
collect our account receivables and unbilled revenue.
• Restrictions on travel, marketing events and in-person
client meetings may result in sub-optimal branding and
delays in our sales and commercial processes, affecting
our revenue.
• Clients may invoke contractual clauses and / or levy
penalties if we are unable to meet project quality,
productivity and scheduled service-level agreements due
to our employees working remotely.
• Our profitability may be negatively impacted if we are
unable to eliminate fixed or committed costs in line with
reduced demand. Additionally, any sudden change in
demand may impact utilization in the short term, thereby
impacting margins.
• Our profitability may be marginally impacted as some
clients may dispute some of the existing work-in-process
that has been recognized by us as unbilled revenues. This in
turn can impact our profitability and cash flows negatively.
• Our exposure to cybersecurity and data privacy breach
incidents may increase due to a large number of employees
working remotely. This in turn can hinder our ability to
continue services and / or operations, impacting revenue,
profitability and reputation.
• The productivity of our employees may be negatively
impacted due to isolated remote working from home,
quarantine requirements, negative social sentiment and
personal anxiety.
• We have recently announced that we will cover vaccination
costs of our employees and their families and also agreed to
provide financial support to affected employees and their
families. This may have an impact on our cost structure
which may increase if there is an increase in vaccination
costs or support extended.
• Due to the rising number of COVID-19 cases in India, with
the prolonged second wave and predicted future waves in
the regions where most of our employees are located, there
may be fulfilment challenges if our employees are on leave
as a result of having contracted COVID-19 directly or to
take care of anyone in their family.
• Our operations may get disrupted after the reopening of
our campuses and offices if any of our returning employees
test positive for COVID-19.
• We could be subject to lawsuits from our employees
alleging they are exposed to health risks as we transition
them back to working from our or our clients’ offices.
• Our ability to procure goods and services may be impacted
as some of our suppliers may not able to operate efficiently
during a lockdown.
• Unfavorable currency movements during these times may
impact our profitability.
• An increase in insurance premium on the regular policies
that we avail may adversely impact our profitable growth
or coverage.
• There could be heightened regional or macro risks such as
an increase in unemployment, protectionism, immigration
reform, extended recession in the economy, geo-political
tension and social unrest.
• Many educational institutions in India, which are a primary
source of our talent, have postponed students assessments
due to the ongoing second wave of COVID-19. This may
affect the timely supply of fresh graduates that we plan to
hire this year.
• The uncertainty in demand as our clients deal with a
prolonged economic impact of the COVID-19 pandemic
may cause us to implement severe cost control measures
including reduction in employee bonuses. This could
result in increased attrition of employees and / or a higher
expenditure on recruitment and sub-contracting services,
thereby impacting our profitability.
• If the market price of our shares / ADSs remain low due to
a prolonged recession, the value of RSUs and the ability to
achieve the performance targets of the PSUs we have given
to our employees may reduce. This will impede our ability
to retain our high-performing employees.
• Although we have successfully invoked Business Continuity
Procedures (BCP) so far, a prolonged continuation of the
COVID-19 pandemic may create breakdown in our BCP,
impacting our business.
• We could experience potential impairment of acquired
entities and investments as a result of prolonged slower
economic growth which can impact business momentum
and synergies that were expected.
• We may be unable to recoup the investments that we
have made in various instruments due to the impact of
prolonged economic downturn with consequential impact
on liquidity in the sectors or the geographies in which we
have invested.
Some of the other key risks that the Company is facing
are as follows:
1. Risks
the markets
in which we
to
related
and our clients operate
• Spending on technology products and services by our
clients and prospective clients is subject to fluctuations
depending on many factors, including both the
economic and regulatory environments in the markets
in which they operate.
• Economic slowdown or other factors may affect the
economic health of the United States, the United Kingdom,
the European Union (EU), Australia or those industries
where our revenues are concentrated.
• Our clients may operate in sectors that are adversely
impacted by climate change which could consequently
impact our business and reputation.
• Per-country restrictions on visas, cost increases in
obtaining such visas, increases in required minimum wage
levels for visa dependent employees, and / or increased
enforcement may affect our ability to compete for, and
provide services to clients in work location countries,
which could adversely affect our business, results of
operations, and / or financial condition.
86 | Management’s discussion and analysis
Infosys Annual Report 2020-21
• Our clients may be the subject of economic or other
sanctions by governments and regulators in key
geographies that we operate in, limiting our ability to
grow these relationships, risking increased penalties and
exposure of our business to consequential sanctions.
• A large part of our revenues is dependent on our limited
number of clients, and the loss of any one of our major
clients could significantly impact our business.
• Financial stability of our clients may fluctuate owing to
several factors such as demand and supply challenges,
currency fluctuations and other macroeconomic
conditions, which may adversely impact our ability to
recover fees for the services rendered to them.
• We may not be able to provide end-to-end business
solutions to our clients, which could lead to clients
discontinuing their work with us, which in turn
could harm our business.
• Intense competition in the market for technology services
could affect our win rates and pricing, which could
reduce our market share and decrease our revenues
and / or our profits.
• Our engagements with clients are typically singular
in nature and do not necessarily provide
for
subsequent engagements.
2. Risks related to the investments we make for our
growth
• Our business will suffer if we fail to anticipate and develop
new services and enhance existing services in order to
keep pace with rapid changes in technology and in the
industries on which we focus.
• We may be unable to recoup investment costs incurred in
developing our software products and platforms.
• We may engage in acquisitions, strategic investments,
strategic partnerships or alliances or other ventures that
may or may not be successful.
• Goodwill that we carry on our Balance Sheet could give
rise to significant impairment charges in the future.
3. Risks related to our cost structure
• Our expenses are difficult to predict and can vary
significantly from period to period, which could cause
fluctuations to our profitability.
• Any inability to manage our growth could disrupt our
business, reduce our profitability and adversely impact
our ability to implement our growth strategy.
• Wage pressures in India and the hiring of employees
outside India may prevent us from sustaining some of our
competitive advantage and may reduce our profit margins.
• We are investing substantial cash assets in new facilities
and physical infrastructure, and our profitability could be
reduced if our business does not grow proportionately.
• Currency fluctuations and declining interest rates may
affect the results of our operations.
4. Risks related to our employee workforce
• Our success depends largely upon our highly skilled
technology professionals and our ability to hire, attract,
motivate, retain and train these personnel.
• Our success depends
large part upon our
in
management team and key personnel and our ability to
attract and retain them.
5. Risks related to our contractual obligations
• Our failure to complete fixed-price (including maintenance)
and fixed-timeframe contracts, or transaction-based
pricing contracts, within budget and on time, may
negatively affect our profitability.
• Our client contracts can typically be terminated
without cause, which could negatively impact our
revenues and profitability.
• Our client contracts are often conditioned upon our
performance, which, if unsatisfactory, could result in lower
revenues than previously anticipated.
• Some of our long-term client contracts contain
benchmarking provisions which, if triggered, could result in
lower future revenues and profitability under the contract.
• Our work with governmental agencies may expose us
to additional risks.
6. Risks related to our operations
• Our reputation could be at risk and we may be liable to our
clients or to regulators for damages caused by inadvertent
disclosure of confidential information and sensitive data.
• Our reputation could be at risk and we may be liable to
our clients for damages caused by cybersecurity incidents.
• Our reputation may be impacted and we may incur
financial liabilities if privacy breaches and incidents under
General Data Protection Regulation (GDPR) adopted by the
EU or other data privacy regulations across the globe are
attributed to us or if we are not able to take necessary steps
to report such breaches and incidents to regulators and
data subjects, wherever applicable, within the stipulated
time. Further, any claim from our clients for losses suffered
by them due to privacy breaches caused by our employees
may impact us financially and affect our reputation.
• We may be the subject of litigation which, if adversely
determined, could harm our business and operating results.
• Our insurance coverage may not be adequate to protect us
against all potential losses to which we may be subject, and
this may have a material adverse effect on our business.
• The markets in which we operate are subject to the risk
of earthquakes, floods, tsunamis, storms, pandemics and
other natural and manmade disasters.
• The safety of our employees, assets and infrastructure may
be affected by untoward incidents beyond our control,
impacting business continuity or reputation.
• Terrorist attacks or a war could adversely affect our
business, results of operations and financial condition.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 87
• Climate change risks are increasingly manifesting in our
business operations through physical risks and transitional
(market and compliance) risks, which, if not managed
adequately, can affect our operations and profitability.
• Our reputation, access to capital and longer-term financial
stability could be at risk if we are unable to meet our stated
climate action goals under our 2030 ESG vision.
• Negative media coverage and public scrutiny may divert
the time and attention of our Board and Management
and adversely affect our reputation and the prices of our
equity shares and ADSs.
7. Risks related to legislation and regulatory
compliance
• Due to the COVID-19 pandemic and the corresponding
substantial increases in unemployment rates across certain
countries in which we operate, including the United States,
United Kingdom, EU and Australia, governments have led
and may in the future lead to the enactment of restrictive
legislations that could limit companies in those countries
from outsourcing work to us, or could inhibit our ability to
staff client projects in a timely manner thereby impacting
our revenue and profitability.
• New and changing regulatory compliance, corporate
governance and public disclosure requirements add
uncertainty to our compliance policies and increase our
costs of compliance.
• The intellectual property laws of India do not give sufficient
protection to software and the related intellectual property
rights to the same extent as those in the US. We may be
unsuccessful in protecting our intellectual property rights.
We may also be subject to third-party claims of intellectual
property infringement.
• Our net income would decrease if the Government of India
reduces or withdraws tax benefits and other incentives
it provides to us or when our tax holidays expire,
reduce or terminate.
• In the event that the Government of India or the
government of another country changes its tax policies
in a manner that is adverse to us, our tax expense may
materially increase, reducing our profitability.
• We operate in jurisdictions that impose transfer
pricing and other tax-related regulations on us, and
any failure to comply could materially and adversely
affect our profitability.
• Changes in the policies of the Government of India
or political instability may adversely affect economic
conditions in India generally, which could impact our
business and prospects.
• Attempts to fully address concerns of activist shareholders
may divert the time and attention of our Management
and Board of Directors and may impact the prices of our
equity shares and ADSs.
• Our international expansion plans subject us to risks
inherent to doing business internationally.
• Our ability to acquire companies organized outside India
may depend on the approval of the RBI and / or the
Government of India and failure to obtain this approval
could negatively impact our business.
• Indian laws limit our ability to raise capital outside
India and may limit the ability of others to acquire us,
which could prevent us from operating our business or
entering into a transaction that is in the best interests
of our shareholders.
8. Risks related to the ADSs
• Historically, our ADSs have traded at a significant premium
to the trading prices of our underlying equity shares.
Currently, they do not do so, and they may not continue
to do so in the future.
• Sales of our equity shares may adversely affect the prices
of our equity shares and ADSs.
• The price of our ADSs and the US dollar value of any
dividends we declare may be negatively affected by
fluctuations in the US dollar to Indian rupee exchange rate.
• Indian law imposes certain restrictions that limit a
holder’s ability to transfer the equity shares obtained upon
conversion of ADSs and repatriate the proceeds of such
transfer which may cause our ADSs to trade at a premium
or discount to the market price of our equity shares.
• An investor in our ADSs may not be able to exercise
preemptive rights for additional shares and may thereby
suffer dilution of such investor’s equity interest in us.
• ADS holders may be restricted in their ability to
exercise voting rights.
• ADS holders may be restricted in their ability to participate
in a buyback of shares offered by us.
• It may be difficult for holders of our ADSs to enforce any
judgment obtained in the US against us.
• Holders of ADSs are subject to the Securities and Exchange
Board of India’s Takeover Code with respect to their
acquisitions of ADSs or the underlying equity shares,
and this may impose requirements on such holders with
respect to disclosure and offers to purchase additional
ADSs or equity shares.
• The reintroduction of dividend distribution tax rate or
introduction of new forms of taxes on distribution of
profits or changes to the basis of application of these taxes
could materially affect the returns to our shareholders.
VI. Internal control systems and their
adequacy
The CEO and CFO certification provided in the CEO and
CFO Certification section of the Annual Report discusses the
adequacy of our internal control systems and procedures.
88 | Management’s discussion and analysis
Infosys Annual Report 2020-21
VII. Material developments in human
resources / industrial relations, including
number of people employed
Our culture and reputation as a leader in consulting,
technology, outsourcing and next-generation digital services
enable us to attract and retain some of the best talent.
Human resources management
At Infosys, we focus on the workplace of tomorrow that
promotes innovation and a collaborative, transparent and
participative organization culture, and rewards merit and
sustained high performance. The focus of human resources
management at Infosys is to ensure that we enable each and
every employee to navigate the next, not just for clients, but
also for themselves.
The three key strategic pillars of our Employee
Value Proposition are:
• Driving Purposeful impact – ‘Inspiring them to build
what’s next’
• Ensuring continuous learning and career growth – ‘Making
sure their career never stands still’
• Creating world-class culture and employee experience –
‘Navigating further, together’
Here are the key initiatives of this year:
• Talent Anywhere model: As we prepare to thrive in the
future, it is clear that the new workplace will be hybrid
remote with distributed teams becoming more prominent.
We expect that the change in workplace will encourage
different workforce models. In order to be ready and lead
the paradigm change in the workplace, we rolled out the
Talent Anywhere model in India that provides flexibility of
work location for our employees. We have ensured that we
abide by the statutory requirements at all times.
• Digital transformation: The digital transformation journey
that we had embarked on a few years back ensured
employees could perform all their transactions online
through our various mobile-first apps and could connect
and collaborate in the remote-working “new normal”.
- Launchpad: We expanded the coverage of Launchpad, our
mobile app that provides a guided flow for our new hires
throughout the onboarding process, making the entire
process paperless and faster. It helped us onboard our
new hires remotely and make them ready for production.
We have seen improvement in employee satisfaction levels
with the onboarding process during the pandemic.
- InfyMe: We continued to enrich the InfyMe app
with more services that enabled teams during the
pandemic and helped them to operate, connect and
collaborate more easily.
iEngage: We expanded the reach of iEngage across the
geos and helped managers schedule connect sessions
with their teams, track attendance, actionize items
and provide updates.
-
- Infosys Meridian: With its event management platform
and ability to allow breakout sessions, Infosys
Meridian is fast becoming the go-to platform for all
employee engagement events.
- Compass: This is not only a one-stop digital platform
for all career-related needs of our employees, but also
a key lever for reskilling. The platform empowers our
workforce to keep pace with the latest digital skills,
build their expertise, and explore relevant career
opportunities through an internal marketplace.
Compass is now available on InfyMe and hence easily
accessible to our entire workforce.
- People analytics: We are also investing heavily in people
analytics to transform employee experience. In order
to create a data-driven culture, we have come up with
two projects: People Dashboard and Data Village,
which democratize data and make employee data
easily available to managers and HR, to support better
decision-making and problem-solving. While we create
a data-driven organization and solve business problems
using data, we strictly ensure that individual employee
data is always protected, guided by our corporate Data
Privacy Office and data governance guidelines.
- Robotic process automation (RPA) in HR: We have
started leveraging the power of RPAs in HR to enhance
productivity of the operations team and usher in
intelligent automation in HR.
- Manager Code: This guides managers in keeping
teams motivated through constant communication
and a patient hearing to the challenges and pain points
of the team members.
• Employee engagement: Our renewed Employee
Engagement Framework is based on the 5C’s – Connect,
Collaborate, Celebrate, Care and Culture. Its main
objective is to ensure effective engagement, wellbeing and
sustained motivation levels among employees in the new
hybrid model of work. Virtual events like Unmute 2021
(concert for employees), Petit Infoscion Day (with 16,000+
children in attendance), Infy Incredibles (internal talent
showcase) and Awards for Excellence (our global awards
ceremony) were some of the highlights of the year.
• Awards for Excellence (AFE): The AFE remains our largest
rewards and recognition platform for employees. This year
marked its 26th anniversary, and we received the highest
number of nominations across geographies, covering
over 20 categories. Social Impact Awards were added this
year to recognize the contribution of employees during
the pandemic.
• Rewards philosophy: At Infosys, we look at rewards in a
holistic manner – what we call as total rewards, a mixture
of both monetary and non-monetary rewards. It includes
an element of fixed pay, supplemented with ‘pay at risk’
which is based on performance, and could be paid in cash
as well as through stock grants. For a global and diverse
workforce it also ensures inclusion of localized benefits
plans. In addition to the standard compensation and
benefits, we have made rewards available through learning,
through diverse career experiences and through platforms
for creative contributions as well. Skill bonuses, for people
with niche skills is a new concept we have introduced.
Our key objectives are enabling financial stability and
ensuring that our pay is competitive in order to drive high
performance and right behaviors.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 89
• Culture and values: The organization culture, driven by our
core values, is one of the main levers that drive our business.
Employees are regularly reminded about acceptable standards
of conduct through various forums like onboarding, mail
communications, town halls, and team meetings.
• Be the Navigator (BTN): An empowerment program to
encourage purposeful innovation for clients, BTN has also
been repurposed to build the momentum of our business
focus on cloud and digital.
• Facilitating a positive work environment: Infosys is
committed to providing a positive work environment free
of discrimination and harassment. Equal opportunity and
fair treatment are part of our Code of Conduct to which all
employees subscribe. The Resolution Hubs at Infosys provide
fair, neutral, and independent forums for employees to voice
their concerns. The Company has also instituted multiple
channels – represented by the Anti-Sexual Harassment
Initiative, HEAR platform (Hearing Employees and Resolving
their concerns), Grievance Redressal Body, Whistleblower
Krishnamurthy Shankar
Group Head – Human Resources
and Infosys Leadership Institute
This year saw the biggest disruption to
normal life, due to the pandemic. However,
in these times we put the safety and
security of our employees at the forefront
and many initiatives were led to support
our people. We enabled over 96.5% of our
global workforce to work securely from the
safety of their homes for the entire previous
year and that remains the same as of today.
We chartered flights to transport our
employees who were stranded in US, Europe,
Australia, and Japan. We tied up with over
1,500 hospitals across India to help provide
medical support to our employees, for
testing, as well as to facilitate the vaccination
of our employees and their dependents. We
set up COVID care centers in our large DCs
where our employees could stay and get
treatment for COVID-19. On top of all this,
we were also conscious of the toll that the
pandemic could have on the overall physical
fitness and mental health of employees, and
various initiatives were rolled out to support
employees in this area. This was a year
where wellness was the top priority as we
navigated the crisis.
Policy, and ICARE – to address employee grievances. In the
post-pandemic scenario, there is greater focus on providing
psychological safety to employees.
• Employee wellbeing: This is a crucial tenet of the culture
at Infosys, where employees receive a holistic wellness
experience under HALE (Health Assessment and Lifestyle
Enrichment), our flagship wellness program for employees.
Wellbeing at Infosys revolves around the cornerstones of
physical wellbeing, emotional wellbeing, social wellbeing and
safety. Some of the initiatives under the HALE banner include:
- Self-help model: Increasing the awareness quotient
of employees through enablement, education,
continuous communication and self-help tools such as
a wellbeing chatbot.
- Infy Ikigai: A new program emphasizing the importance
of stepping away from the physical and mental demands
of everyday life and focusing on self-care.
- Women Samaritans Network: This is a peer-to-peer
counseling network exclusively for women employees.
- Digital wellness: This has been a key differentiator,
making multiple services available at the click of a
button – from nudges, to counseling on our in-house
app and self-help tools. Wellbeing support was rated at
an all-time high of 91% by employees across locations,
and 4.2 out of 5 on individual offerings. The sense of
connectedness stands at 88% – a testament to the culture
of collaborate and support across the organization.
• Workforce transformation: As we navigate our clients on
their technology and digital transformation journey, we at
Infosys are also continuously transforming our workforce
for digital. The talent management levers that help us
maintain the right digital talent mix, meet self-sufficiency
in digital areas and better engage and retain our talent are:
– Scaling our digital talent base
- Through structured learning paths and focused
entry-level strategies, we are continuously growing
our digital talent base
- Digital Quotient, a recently launched
digital readiness index
– Creating levers to pivot towards a skill-led
organization construct
- Skill Tags are helping prepare a digitally
ready talent pipeline
- Skill-based identities to recognize expertise in
new-age / niche technology spaces
– Nurturing talent to build specialized digital
transformation skills
- New breed of digital specialists to advance
our transformation journey, enabling
self-directed growth and rewards
- Opportunities through open internal market and
career choice programs
– Building next-gen managers to lead resilient hybrid teams
- Helping managers deliver superior outcomes
on learning, create client value and helping
build resilient teams
90 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Recruitment
As at March 31, 2021, the Group employed 2,59,619
employees, of which 2,45,037 were professionals involved
in service delivery to the clients, including trainees. We have
built our global talent pool by recruiting new students
from premier universities, colleges and institutes globally.
We constantly attract and hire developers, architects, project
leaders and middle management across the globe across
various new age and modern technologies. We recruit students
who have consistently shown high levels of achievement from
campuses in India. We also recruit students from campuses in
the US, UK, Australia, Singapore, Japan, Germany, Canada,
Mexico and China. We rely on a rigorous selection process
involving aptitude test, coding test and interviews to identify
the best applicants. This selection process is continually
assessed and refined based on the performance tracking
of past recruits. All interviews across the Globe in fiscal
2021 were conducted virtually using video conferencing
platforms, and the end-to-end process was digitalized.
The team also implemented an in-house applicant tracking
System for India hiring, in place of a third-party software that
was used traditionally.
During fiscal 2021, we received 14,27,618 employment
applications, interviewed 1,35,216 applicants and extended
offers of employment to 48,029 applicants. These statistics
do not include our subsidiaries. We added 17,248 new
employees, net of attrition, during fiscal 2021.
Education, training and assessment
Continuous learning and reskilling have always been central
to our culture. The Foundation Program offered by our
Global Education Center enables fresh graduates to become
corporate professionals. Its curriculum, comprising over 46
variants of new technology streams, behavioral competencies,
and niche skills, has been designed to prepare our talent for
dynamic business requirements. A similar training center
has been set up in Indianapolis, US to reskill local talent.
The Foundation Program is also rolled out in Mexico, UK,
Germany, Australia, Singapore, and Japan. The early days
of the COVID-19 pandemic saw us relocate trainees from
Mysuru and continue their training without missing a beat
courtesy this deep-rooted learning culture and our digital
learning platform, Lex.
Our reskilling program has twin objectives – increasing
fulfillment of immediate digital skill requirements for client
projects and enriching the expertise of our global workforce
in next-generation technologies and methodologies. We have
invested in and scaled our digital reskilling program globally.
Lex, the in-house learning platform, offers over 1,800
curated courses. Over 2,40,000 employees use Lex and are
spending approximately 45 minutes per day on average for
learning. We have also repurposed Lex for over a million
college students in India via our InfyTQ app. Wingspan®,
our configurable talent transformation platform for clients,
is already live in several global client organizations.
We continue to engage with academic institutions to reskill
talent and create new learning courses to meet the demands of
this accelerated digital adoption. The adoption of simulated
learning continues to gain ground and pilots are being
planned with AR / VR content too.
VIII. Other details
1. Quality
The Quality function at Infosys, in line with organization’s
vision and strategy of ‘Navigate the Next’, has three
strategic imperatives:
• Differentiate Infosys services through superior performance
and quality
• Optimize Infosys client projects as well as internal
functions for greater efficiency
• De-risk Infosys operations by ensuring compliance and
sustainability
Our Quality team has been driving the org-wide agile
transformation to scale our capabilities for Agile Digital in
tune with the Company strategy. This has resulted in a marked
improvement in agile capabilities, with HfS rating Infosys
No.1 among all agile service providers. The Quality team also
consulted with several large clients and helped them drive their
agile, DevOps and overall workplace transformation.
It led the way in driving Lean and Automation throughout
the organization to enhance productivity and improve quality,
which has resulted in large optimization in projects. It deployed
robust frameworks, tools and platforms across service lines in
a collaborative manner to drive hyper-productivity and has
enabled several thousand employees on these over the past
year. The Quality team worked with cross-functional teams
to drive enterprise agility by simplifying many enterprise
processes, thus reducing cost, improving agility in operations,
and enhancing employee experience.
This year, as all projects shifted to the remote way of working,
Quality created frameworks and playbooks which helped
projects adapt to the remote world of work and sustain and
improve their productivity and effectiveness. Quality has
also done extensive research on projects performance, to
arrive at ways to optimally design projects for the new
hybrid ways of working.
Quality also proactively led compliance and assurance through
audits and assessments to intensely de-risk the organization,
with increased coverage of services and centers.
We continue to comply with international management system
standards and models viz. ISO 9001, ISO 27001, ISO 14001,
ISO 22301, ISO 20000, AS 9100 and ISO 27701. In fiscal
2021, Infosys got appraised at L5 maturity in one of the largest
integrated CMMI2.0 assessments in the world ever. Infosys
is one of the first few organizations to have complied and
certified to the new safety management system (ISO 45001).
Privacy Information Management System for Personal data
of EU data subjects in Netherlands and Germany processed
at the Infosys India corporate office has been certified based
on ISO 27701 standards. All European centers have been
assessed for GDPR requirements as well. Infosys is one of
first few organizations to comply with and get assessed at
enterprise level for SSAE 18 SOC 2 type II & ISAE 3402 / SSAE
18 SOC 1 type II and has received an independent auditors’
assurance compliance report.
Infosys Annual Report 2020-21
Management’s discussion and analysis | 91
2. Infosys Center for Emerging Technology Solutions (iCETS)
OUTCOME
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The Infosys Center for Emerging Technology Solutions
(iCETS) is the emerging technology solution incubation
partner for Infosys’ clients and units. iCETS provides
next-generation platforms and innovation-as-a-service to
futureproof enterprise businesses. The focus is on incubating
New Emerging eXploratory Technology (NEXT) solutions for
our clients orchestrated by Infosys Living Labs.
iCETS enables enterprises to realize their Live Enterprise vision
by developing and deploying next-generation offerings –
such as the Live Enterprise Application Management
Platform (LEAP), which has a platform-centric approach
for AMS services that makes application management agile,
intelligent, integrated and business-aligned. As a leader in
data privacy, Infosys Enterprise Data Privacy Suite (iEDPS),
assists organizations in tackling the complexity and data
privacy responsibilities of organizations to achieve both
compliance and business productivity objectives. In order to
address the increased cyber threats for our client’s business
Infosys has built CyberNext, a holistic security-as-a-service
platform. Through Infosys Cortex, an AI-driven, cloud-first
customer engagement platform, we transform digital
customer service through purposeful communication and
smart decision-making capabilities. Most of our platforms
are designed to be platform-a-a-service offerings with IP /
patent-led differentiation. These platforms have been
able to bring in differentiated services while accelerating
innovations for our clients.
Infosys Living Labs brings our entire innovation ecosystem
to help clients meet their innovation-at-scale needs – on
multiple dimensions. Here we proactively monitor and
publish Trend Trees of Horizon 3 technologies and business
trends. Assist our clients to foresee disruptions with
Listening-Post-as-a-Service (LPaaS). Jointly working with
our clients, we enable rapid prototyping, incubating and
piloting innovative solutions. We also instill a culture of
innovation with our Be The Navigator (BTN) program across
large teams, provide shared innovation infrastructure for
collaborative innovation, and ensure a seamless transition
from a PoC to large-scale implementations with our global
innovation hubs. Our evolving partner ecosystem, including
startups, universities and hyperscalers, plays a critical role in
the increased velocity of ideas and solutions for our clients.
Infosys Innovation Network (IIN) is a well-orchestrated
partnership between select startups, universities, and Infosys
to incubate and bring the best of emerging tech innovations
from across the globe to our clients. The IIN program aims
to create lighthouse wins for clients to experiment and
implement the art-of-the-possible leveraging our global
92 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Emerging offerings
Envision
Invent
Disrupt
New offerings
Adopt
Scale
Enhance
Core offerings
Differentiate
Diversify
Deploy
Emerging offerings
NextGen Computing
(Quantum Computing)
NextGen Languages
Adaptive / Autonomous Systems
Future of Work
Resilence
5G
Near new offerings
Blockchain
Smart Spaces
X-Reality
Cybersecurity
NextGen IoT
Incubated to new offerings
AI and Machine Learning
Internet of Things
Modernization
Automation
Data for Digital
Part of core offerings
Mobility
Cloud Services
Big Data and Analytics
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Business uncertainty
innovation ecosystem. Infosys de-risks client adoption of
technology innovations and solutions by carefully curating
these startups, finding the right fit and implementing early
pilots. Infosys has also established partnerships with key client
Corporate Venture Capital (CVC) firms to bring their portfolio
startups on to Infosys’ network. Over the past 12 months,
we’ve engaged with numerous startups and universities across
geographies like the US, Finland, Israel, and India, working
in spaces like AI, fintech, cloud, cybersecurity, InsureTech,
HealthTec, and more.
ICETS has supported over 100 innovation programs for clients
like, American telecom companies, large banking institutions,
European national postal service, and more, by bringing
together Infosys platforms, innovations, and networks.
We act as the contextualizer, crucible and orchestrator to our
clients driving next-generation innovations.
3. Branding
Brand Infosys is a key intangible asset for the Company.
It serves to position Infosys as the next-generation digital
services partner of choice for enterprises navigating their
transformation. It is built around the premise that the
experience we’ve gained, for four decades, in managing
the systems and workings of global enterprises enables us
uniquely to be navigators for our clients. We do it by enabling
them with an AI-powered core. We also empower the
business with agile digital at scale to deliver unprecedented
levels of performance and customer delight. Our Always-on
Learning foundation drives their continuous improvement
through building and transferring digital skills, expertise
and ideas from our innovation ecosystem. Our localization
investments in talent and digital centers help accelerate the
business transformation agenda. With this, we help every
client build their Live Enterprise – an organization that is
always navigating its next.
Our marketing reach extends globally through digital-first
multi-channel campaigns. As the digital innovation partner
for the Australian Open, Roland-Garros and the ATP, we
help showcase how brand Infosys is reimagining the tennis
ecosystem for a billion fans globally leveraging data, insights
and digital experiences. We participate in premier business
and industry events around the world, while also organizing
our own signature events and CXO roundtables. Confluence,
our flagship client event series across the US, Europe and
APAC, is rated highly by our clients and industry partners.
4. Client base
Our client-centric approach continues to bring us high levels
of client satisfaction. During fiscal 2021, we derived 96.2%
of our consolidated revenues from repeat business this fiscal.
We, along with our subsidiaries, added 475 new clients,
including a substantial number of large global corporations.
Our total client base at the end of the year stood at 1,626.
The client segmentation, based on the last 12 months’
revenue for the current and previous years, on a consolidated
basis, is as follows:
Clients
100 million dollar +
50 million dollar +
10 million dollar +
1 million dollar +
2021
32
59
252
779
2020
28
61
234
718
Infosys Annual Report 2020-21
Management’s discussion and analysis | 93
impactful programs from ivy league academic institutions and
premier consulting firms for all title-holders. The programs
covered nearly 4,400 participants with very high approval
ratings. ILI also worked with leaders to ensure they leveraged
the leadership 360 and other development tools to focus on
their Leadership Personal Development Plans.
6. Infosys Knowledge Institute
The Infosys Knowledge Institute (IKI) harnesses the
intellectual capital of our employees, clients, partners, and
academics to develop and share a deeper understanding of the
business impact of technology and market trends. Combining
surveys, quantitative analysis, and expert interviews, IKI
creates perspectives, benchmarks, and diagnostic tools on
trends across industries and functions. Current research
focuses on four themes: talent, sustainability, evolutionary
operating models and the future of money. Recent major
works have included Digital Radar, TechCompass trends
series, AI and Agile indexes, and The Live Enterprise
book. IKI also publishes regularly in leading business and
technology media, and conducts roundtables and seminars.
For more information, go to https://infosys.com/iki.
7. ESG vision and ambitions
Almost four decades after our inception, when we first made the
commitment to be a values-driven company, we continue to place
responsible stewardship at the heart of our business strategy.
In October 2020, we launched our ESG Vision 2030 to “shape
and share solutions that serve the development of businesses
and communities”. Today, our 2030 vision reflects how ESG
will continue to be integral to Infosys’ sustainable business
performance. We will continue to be carbon-neutral across
Scope 1, 2 and 3 emissions every year.
We will expand reskilling initiatives to empower 10
million-plus people with digital skills and 80 million-plus
lives with technology for good programs in e-governance,
healthcare and education. We commit to nurturing greater
inclusivity and strengthening our gender-diverse workforce
with at least 45% women employees.
We will grow our stakeholder focus and bring the interests
of our stakeholders, whether customer, employee, supplier
or shareholder, to the fore through an empowered, diverse
and inclusive Board. We will further strengthen data privacy
and information security standards across global operations.
For more information about our ESG initiatives, read our
ESG Vision 2030 document at https://www.infosys.com/
content/dam/infosys-web/en/about/corporate-responsibility/
esg-vision-2030/index.html.
5. Infosys Leadership Institute
As with the rest of the world, for Infosys Leadership Institute
(ILI), fiscal 2021 was the year of adapting to the ‘new normal’.
ILI adapted quickly, pivoting from in-person programs to
virtual programs. We launched the “Leaders teach” series
virtually. Facilitated by senior leaders including client CXOs,
these sessions focused on key leadership dimensions like
Strategic Influence, Business Acumen, Fostering Client
Relationships, Making the Most of a Crisis, Authentic
Leadership etc. The series saw large-scale participation
from our global leaders.
The year also saw our succession pipeline development
program – the “Constellation Program” – come alive with
leaders working in cross-functional teams on various
strategic projects aligned to key organizational imperatives.
With regular reviews, guidance and direction coming from
mentors and a CXO-led panel, the teams gained tremendous
enterprise perspective in addition to cross-functional
exposure. ILI also began focused Career Conversations for
Constellation Leaders with senior leadership panels.
ILI launched IamtheFuture: The Women in Leadership
Program, aimed at grooming women for leadership roles.
Designed as a year-long program through fiscal 2022 in
partnership with Stanford GSB, the program provides holistic
development opportunities for our women leaders globally.
In parallel, ILI continued its focus on bringing personalized and
Nilanjan Roy
Chief Financial Officer
Fiscal 2021 was the year of the COVID-19
crisis. It was also the year that Infosys
announced its ESG Vision 2030 amidst a very
volatile business environment. While we
have always sought to balance success as a
business with responsiveness to the needs
of our stakeholders, the year gone past
brought us a clarifying moment. Once again,
human resilience shone through with hope
and optimism in the face of hardship. We
knew this was the moment to reinforce our
continued commitment to ESG investing
for positive returns and long-term impact
on society, environment and business
performance. While corporations have come
to appreciate the fact that ESG investing
is inextricably linked to shareholder value
because it helps shape sustainable business
models, this period is a reminder for us all to
act, in unity and with urgency.
94 | Management’s discussion and analysis
Infosys Annual Report 2020-21
Corporate governance report
Our corporate governance philosophy
Our corporate governance is a reflection of our value system encompassing our culture, policies, and relationships with our
stakeholders. Integrity and transparency are key to our corporate governance practices to ensure that we gain and retain the
trust of our stakeholders at all times.
Corporate governance framework
Our corporate governance framework is guided by our core values – Client Value, Leadership by Example, Integrity and
Transparency, Fairness and Excellence (C-LIFE) – and is based on the following principles:
CORPORATE
GOVERNANCE
AT INFOSYS
Legal compliance
Satisfy both the spirit and the letter of the
law in all our actions and disclosures
Integrity and
transparency
Fairness and
excellence
Ensure transparency and maintain a high level
of integrity
Be objective and ethical, and deliver the best
to earn trust and respect from our stakeholders
Effective corporate
governance structure
Build simple and transparent processes
driven by business needs of all stakeholders
Relationship with
stakeholders
Communicate frequently with stakeholders, including
clients, investors, and stock markets
Responsible
leadership
The Board
as trustee
Lead by example by ensuring independence of the
Board and effectiveness of the Management
Safeguard the shareholder’s capital
as trustee, and not as its owner
Our corporate governance framework ensures that we make
timely disclosures and share accurate information regarding
our financials and performance, as well as disclosures related
to the leadership and governance of the Company.
with the Company’s Memorandum & Articles of Association,
the charters of the committees of the Board and applicable
laws / regulations /guidelines in force for the time being in
India and the US and other jurisdictions, as applicable.
Corporate governance guidelines
The Company recognizes that the enhancement of corporate
governance is one of the most important aspects in terms of
achieving the Company’s goal of enhancing corporate value
by deepening societal trust. Strong corporate governance
founded on values is the bedrock of the sustained performance
at the Company and fuels the Company’s vision to achieve the
respect of stakeholders.
The corporate governance standards established (and updated
from time to time) by the Board of the Company provide a
structure within which directors and the Management can
effectively pursue the Company’s objectives for the benefit of
its stakeholders. These guidelines are framed in conjunction
The Board has defined a set of corporate governance best
practices and guidelines to help fulfill our corporate
responsibility towards our stakeholders. These guidelines
ensure that the Board will have the necessary authority
and processes to review and evaluate our operations as and
when required. Further, these guidelines allow the Board to
make decisions that are independent of the Management.
The Board, at its discretion, may change these guidelines
periodically to achieve our stated objectives. The guidelines
can be accessed on our website, at https://www.infosys.
com/investors/corporate-governance/Documents/corporate-
governance-guidelines.pdf. In addition to these guidelines,
the Company actively complies with the relevant global
guidelines and standards and corporate governance codes.
Infosys Annual Report 2020-21
Corporate governance report | 95
A. Board composition
As on March 31, 2021, the Board comprised nine members, consisting of one non-executive and non-independent Chairman,
two executive directors, and six independent directors. An independent director is the chairperson of each of the Board
committees – audit committee, nomination and remuneration committee, stakeholders relationship committee, risk management
committee, and corporate social responsibility (CSR) committee.
Size and composition of the Board
The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“the Listing Regulations”)
mandate the following:
•
For a company with a non-executive chairman, who is a promoter, at least half of the board shall consist of
independent directors.
• The board of directors of the top 1,000 listed companies, effective April 1, 2020, shall have at least one
independent woman director.
The composition of our Board as on March 31, 2021
Size and composition of the Board
Independent directors
66.67%
Non-executive and non-independent director,
and executive directors
33.33%
Men
77.78%
Women
22.22%
Tenure analysis of the Board as on March 31, 2021
33.33%
Foreign national
66.67% Indian
Average tenure (in years)
Tenure of the directors
Non-executive and
non-independent director
Executive directors
Independent directors
The Board
3.6
5.2
2.6
3.3
<2 years
2-4 years
>4 years
Role of the Board of Directors
The primary role of the Board is that of trusteeship – to
protect and enhance shareholder value through strategic
direction to the Company.
• As trustees, the Board has a fiduciary responsibility
to ensure that the Company has clear goals aligned to
shareholder value and its growth.
• It also directs and exercises appropriate control to ensure
that the Company is managed in a manner that fulfills
stakeholders’ aspirations and societal expectations.
• It monitors the effectiveness of the Company’s governance
practices and makes changes as needed.
• It provides strategic guidance to the Company, ensures
effective monitoring of the Management and is accountable
to the Company and the shareholders.
• It exercises independent judgment on corporate affairs.
• It assigns sufficient number of non-executive members of
the Board of Directors capable of exercising independent
judgment in tasks where there is a potential for conflict
of interest.
• It reviews and guides corporate strategy, major plans of
action, risk policy, annual budgets and business plans,
setting performance objectives, monitoring implementation
and corporate performance, and overseeing major capital
expenditures, acquisitions and divestments.
Responsibilities of the Board leadership
The responsibilities and authority of the Chairman,
the CEO & MD, the COO, and the lead independent
director are as follows:
The Chairman leads the Board. As Chairman, he is responsible
for fostering and promoting the integrity of the Board while
nurturing a culture where the Board works harmoniously for
the long-term benefit of the Company and all its stakeholders.
The Chairman is primarily responsible for ensuring that the
Board provides effective governance to the Company. In doing
so, the Chairman presides over meetings of the Board and of
the shareholders of the Company.
The Chairman takes a lead role in managing the Board and
facilitates effective communication among directors. He is
responsible for overseeing matters pertaining to governance,
including the organization, composition and effectiveness
of the Board and its committees, and individual directors
in fulfilling their responsibilities. The Chairman provides
independent leadership to the Board, identifies guidelines
for the conduct and performance of directors, and oversees
the management of the Board’s administrative activities,
such as meetings, schedules, agendas, communication and
documentation. The Chairman is also responsible for the
overall strategy of the Company.
96 | Corporate governance report
Infosys Annual Report 2020-21
The Chairman works actively with the nomination and
remuneration committee to plan the composition of the Board
and Board Committees, induct directors to the Board, plan
for director succession, participate effectively in the Board
evaluation process and meet with individual directors to
provide constructive feedback and advice.
The Chief Executive Officer and Managing Director (CEO
& MD) is responsible for executing corporate strategy in
consultation with the Board, as well as for brand equity,
planning, building external contacts and all matters related
to the management of the Company. He is responsible for
achieving annual and long-term business targets. The CEO
& MD also monitors the external and internal competitive
landscape, and new industry developments and standards,
identifies opportunities for expansion and acquisition, and
builds relationships with customers and markets with an
eye to enhancing shareholder value and implementing the
organization’s vision, mission, and overall direction.
The CEO & MD acts as a link between the Board and
the Management and is also responsible for leading and
evaluating the work of other executive leaders including
the Chief Operating Officer (COO), Chief Financial Officer
(CFO), Presidents and Executive Vice Presidents as per the
organizational structure.
The COO has overall strategic and operational responsibility
for the entire portfolio of the Company’s offerings and is
responsible for ensuring that the business enabling functions
provide the necessary support for the sales and delivery teams
in enabling them to help our clients achieve their business
objectives while keeping the highest standards of governance
and professionalism. He oversees the key functions of global
delivery and business enablement.
The role of the lead independent director is to provide
leadership to the independent directors, liaise on behalf of
the independent directors and ensure Board effectiveness to
maintain high-quality governance of the organization and the
effective functioning of the Board.
We believe that an active, well-informed, diversified and
independent board is necessary to ensure the highest
standards of corporate governance. At Infosys, the Board is
at the core of best corporate governance practice. The Board
oversees the Management’s functions and protects the long-
term interests of our stakeholders.
Selection and appointment of new directors
The Board delegates
the screening and
selection process to the
nomination and remuneration
committee, which
consists exclusively of
independent directors.
The committee, based
on defined criteria,
makes recommendations
to the Board on the
induction of new directors.
The Board recommends the
appointment of the director
to the shareholders.
The proposal is
placed before the
shareholders for approval.
Board membership criteria
The nomination and remuneration committee shall consider the following criteria while nominating a candidate for directorship.
Criteria
Fields
Skills
Qualification and attributes
Company-specific requirements
Age limit
Particulars
The Company inducts eminent individuals from diverse fields as directors on its Board.
The nomination and remuneration committee refers to the key board qualifications and
attributes in consultation with the entire Board to determine the skills and experience
required, for the Board as a whole and for individual members.
Members are expected to possess the required qualifications, integrity, expertise and
experience for the position.
Members should also possess deep expertise and insights in sectors / areas relevant to
the Company, and ability to contribute to the Company’s growth.
Managing Director / Executive Director – 60 years
Independent Director / Non-executive Director– 70 years
A director’s term may be extended, at the discretion of the nomination and remuneration
committee, beyond the age of 60 or 70 years with shareholders’ approval by passing a
special resolution, based on the explanatory statement annexed to the Notice, indicating
the justification for the extension of appointment beyond 60 or 70 years, as the case may be.
Infosys Annual Report 2020-21
Corporate governance report | 97
Criteria
Membership term
Particulars
The Board constantly evaluates the contribution of members and shares updates with
the shareholders about reappointments consistent with applicable statutes.
At present, Indian corporate law mandates the following:
• Two-thirds of the non-independent directors be liable to retire by rotation every
year, and one-third of them mandatorily retire by rotation, and qualifies the retiring
members for reappointment.
• Executive directors are appointed by the shareholders for a maximum period of five
years, but are eligible for reappointment upon completion of their term.
• An independent director shall hold office for a term of up to five consecutive years
on the board of the company and will be eligible for reappointment on the passing
of a special resolution by the shareholders.
Key Board qualifications, expertise and attributes
The table below summarizes the key qualifications, skills, and attributes which are taken into consideration while nominating
candidates to serve on the Board. The qualifications of each director is provided separately in the details of the Board of Directors.
Definitions of qualifications, expertise and attributes
Financial
Diversity
Global business
Leadership
Technology
Leadership of a financial firm or management of the finance function of an enterprise, resulting
in proficiency in complex financial management, capital allocation, and financial reporting
processes, or experience in actively supervising a principal financial officer, principal accounting
officer, controller, public accountant, auditor or person performing similar functions
Representation of gender, ethnic, geographic, cultural, or other perspectives that expand the
Board’s understanding of the needs and viewpoints of our customers, partners, employees,
governments, and other stakeholders worldwide
Experience in driving business success in markets around the world, with an understanding
of diverse business environments, economic conditions, cultures, and regulatory frameworks,
and a broad perspective on global market opportunities
Extended leadership experience for a significant enterprise, resulting in a practical understanding
of organizations, processes, strategic planning, and risk management. Demonstrated strengths
in developing talent, planning succession, and driving change and long-term growth
A significant background in technology, resulting in knowledge of how to anticipate technological
trends, generate disruptive innovation, and extend or create new business models
Mergers and Acquisitions
A history of leading growth through acquisitions and other business combinations, with the
ability to assess ‘build or buy’ decisions, analyze the fit of a target with the Company’s strategy
and culture, accurately value transactions, and evaluate operational integration plans
Board service and
governance
Sales and marketing
Sustainability, and
Environment, Social and
Governance (ESG)
Risk expertise
Service on a public company board to develop insights about maintaining board and management
accountability, protecting shareholder interests, and observing appropriate governance practices
Experience in developing strategies to grow sales and market share, build brand awareness and
equity, and enhance enterprise reputation
Experience in leading the sustainability and ESG visions of organizations, to be able to integrate
these into the strategy of the Company
Experience in identifying and evaluating the significant risk exposures to the business strategy
of the Company and assess the Management’s actions to mitigate the strategic, legal and
compliance, and operational risk exposures
The details of the Board members as on March 31, 2021 are available in the following pages.
98 | Corporate governance report
Infosys Annual Report 2020-21
The Board of Directors
Nandan M. Nilekani
Chairman and Non-Executive and
Non-Independent Director (Promoter)
Salil Parekh
Chief Executive Officer
and Managing Director
Nationality
Age
Indian
65
Nationality
Age
Indian
56
Date of appointment
August 24, 2017
Date of appointment
January 02, 2018
Tenure on Board
3.6 years
Tenure on Board
3.2 years
Term ending date
NA
Term ending date
January 01, 2023
Shareholding
4,07,83,162 shares
(0.96%)
Shareholding
4,60,541 shares
(0.01%)
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Infosys Limited
Non-executive and non-
independent director
Infosys Limited
Executive director
Global directorships
2
Global directorships
5
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: Nil
Chairperson: Nil
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: Nil
Chairperson: Nil
Financial
Diversity
Global business
Leadership
Financial
Diversity
Global business
Leadership
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/nandan-nilekani.html
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/salil-parekh.html
Infosys Annual Report 2020-21
Corporate governance report | 99
U.B. Pravin Rao
Chief Operating Officer and Whole-time Director
Kiran Mazumdar-Shaw
Lead Independent Director
Nationality
Age
Indian
59
Nationality
Age
Indian
68
Date of appointment
January 10, 2014
Date of appointment
January 10, 2014
Date of reappointment
January 02, 2018
Date of reappointment
April 01, 2019
Tenure on Board
7.2 years
Tenure on Board
7.2 years
Retirement date
December 12, 2021
Term ending date
March 22, 2023
Shareholding
11,59,715 shares
(0.03%)
Board memberships – Indian listed companies
Infosys Limited
Executive director
Global directorships
2
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 1
Chairperson: Nil
Financial
Diversity
Global business
Leadership
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Shareholding
Nil
Board memberships – Indian listed companies
Biocon Limited
Infosys Limited
Executive director
Independent director
Narayana Hrudayalaya
Limited
Non-executive and non-
independent director
Syngene International
Limited
Non-executive and non-
independent director
United Breweries Limited
Independent director
Global directorships
20
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 1
Chairperson: 1
Financial
Diversity
Global business
Leadership
Profile available at https://www.infosys.com/about/
management-profiles/pravin-rao.html
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/kiran-mazumdar-shaw.html
100 | Corporate governance report
Infosys Annual Report 2020-21
Michael Gibbs
Independent Director
D. Sundaram
Independent Director
Nationality
American
Age
63
Nationality
Age
Indian
68
Date of appointment
July 13, 2018
Date of appointment
July 14, 2017
Tenure on Board
2.7 years
Tenure on Board
3.7 years
Term ending date
July 12, 2021
Term ending date
July 13, 2022
Shareholding
Nil
Shareholding
Nil
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Infosys Limited
Independent director
Global directorships
2
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 2
Chairperson: Nil
Financial
Diversity
Global business
Leadership
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
ACC Limited
Crompton Greaves
Consumer Electricals
Limited
GlaxoSmithKline
Pharmaceuticals Limited
Independent director
Independent director
Independent director
Infosys Limited
Independent director
Global directorships
9
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 7
Chairperson: 5
Financial
Diversity
Global business
Leadership
Profile available at https://www.infosys.com/about/
management-profiles/michael-gibbs.html
Mergers &
Acquisitions
Board service
& governance
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/d-sundaram.html
Infosys Annual Report 2020-21
Corporate governance report | 101
Uri Levine
Independent Director
Nationality
Age
Israeli
56
Bobby Parikh
Additional and Independent Director
Nationality
Age
Indian
57
Date of appointment
April 20, 2020
Date of appointment
July 15, 2020
Tenure on Board
0.9 years
Tenure on Board
0.7 years
Term ending date
April 19, 2023
Term ending date
July 14, 2023
Shareholding
Nil
Shareholding
8,456 shares
(0.00%)
Board memberships – Indian listed companies
Infosys Limited
Independent director
Global directorships
15
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: Nil
Chairperson: Nil
Diversity
Global business
Leadership
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Board memberships – Indian listed companies
Infosys Limited
Additional and
Independent director
Biocon Limited
Independent director
Indostar Capital Finance
Limited
Independent director
Global directorships
8
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 9
Chairperson: 5
Financial
Diversity
Global business
Leadership
Profile available at https://www.infosys.com/about/
management-profiles/uri-levine.html
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/bobby-parikh.html
102 | Corporate governance report
Infosys Annual Report 2020-21
Based on the recommendation of the nomination and
remuneration committee, the Board appointed the following
directors, subject to the approval of the shareholders:
• Bobby Parikh as additional and independent director
effective July 15, 2020 for a period of 3 (three) years
• Chitra Nayak as additional and independent director
effective March 25, 2021 for a period of 3 (three) years
The notice of the 40th Annual General Meeting (AGM) sets
out the details of their appointments.
Chitra Nayak
Additional and Independent Director
Nationality
Age
American
58
Date of appointment
March 25, 2021
Term ending date
March 24, 2024
Shareholding
Nil
Board memberships – Indian listed companies
Infosys Limited
Additional and
Independent director
Global directorships
5
Committee
details as per
Regulation 26 of
Listing Regulations
Areas of expertise
Member: 1
Chairperson: Nil
Financial
Diversity
Global business
Leadership
Technology
Mergers &
Acquisitions
Board service
& governance
Sales &
marketing
Sustainability
& ESG
Risk expertise
Profile available at https://www.infosys.com/about/
management-profiles/chitra-nayak.html
Notes
• There are no inter-se relationships between our Board members. The Company doesn’t have any pecuniary relationship with any of the
non-executive directors.
• In the committee details provided, every chairpersonship is also considered as a membership.
• Global directorships includes all listed, unlisted and private companies including Infosys Limited and its subsidiaries.
• For the purposes of determination of committee details as per Regulation 26 of Listing Regulations, membership and chairpersonship of only the
audit committee and the stakeholders relationship committee are considered.
Infosys Annual Report 2020-21
Corporate governance report | 103
Independent directors
The Companies Act, 2013 and the Listing Regulations define
an ‘independent director’ as a person who is not a promoter
or employee or one of the key managerial personnel of the
company or its subsidiaries. Further, the person should not
have a material pecuniary relationship or transactions with
the company or its subsidiaries, during the two immediate
preceding financial years or during the current financial year,
apart from receiving remuneration as an independent director.
We abide by these definitions of independent director in
addition to the definitions of an independent director as
laid down in the New York Stock Exchange (NYSE) listed
company manual, the Sarbanes-Oxley Act, and US securities
laws by virtue of our listing on the NYSE in the US.
Based on the disclosures received from all the independent
directors and in the opinion of the Board, the independent
directors fulfill the conditions specified in the Companies Act,
2013, the Listing Regulations, NYSE listing manual and are
independent of the Management.
The Board includes six independent directors, out of
which two are women.
directors and other members of the senior management share
points of view and leadership thoughts on relevant issues.
We also facilitate the continual educational requirements of
our directors. Each director is entitled to a training fee of
US$ 5,000 per year. Support is provided for independent
directors if they choose to attend educational programs in
the areas of Board / corporate governance. Non-executive
and independent directors of the Board are familiarized
through engagement such as:
Strategy retreat: As part of our annual strategy planning
process, we organize a management strategy retreat with
the Board to deliberate on various topics related to strategic
alternatives, progress of ongoing strategic initiatives, risks to
strategy execution and the need for new strategic programs to
achieve the Company’s long-term objectives. This serves the
dual purpose of providing a platform for the Board members
to bring their expertise to the projects, while also providing
an opportunity for them to understand detailed aspects of
execution and challenges relating to the specific theme. This
was organized virtually this time.
The details of the training programs attended by the Board
members in fiscal 2021 are as follows:
Men
66.67%
33.33% Women
Name of the director
Meeting of independent directors
Schedule IV of the Companies Act, 2013 and the Rules
thereunder mandate that the independent directors of the
Company shall hold at least one meeting in a year, without
the attendance of non-independent directors and members of
the Management. Even before the Companies Act, 2013 came
into effect, our Board’s policy mandated periodic meetings
attended exclusively by the independent directors. At such
meetings, the independent directors discuss, among other
matters, the performance of the Company and risks faced
by it, the flow of information to the Board, competition,
strategy, leadership strengths and weaknesses, governance,
compliance, Board movements, human resource matters
and performance of the executive members of the Board,
including the Chairman. During the year, the independent
directors met without the presence of the Management.
Training of Board members
All new non-executive directors inducted to the Board are
introduced to our Company culture through orientation
sessions. Executive directors and senior management
provide an overview of operations, and familiarize the new
non-executive directors on matters related to our values and
commitments. They are also introduced to the organization
structure, services, Group structure and subsidiaries,
constitution, Board procedures, matters reserved for the
Board, major risks and risk management strategy. The details
of the familiarization program are also available on the
Company’s website, at https://www.infosys.com/investors/
reports-filings/Documents/training-board-members2021.pdf.
The Board’s policy is to have separate meetings regularly with
independent directors to update them on all business-related
issues and new initiatives. At such meetings, the executive
Nandan M. Nilekani
Salil Parekh
U.B. Pravin Rao
Kiran Mazumdar-Shaw
Dr. Punita Kumar-Sinha
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Total hours
No. of training
hours attended
during fiscal 2021
4
4
4
4
1
4
4
4
4
–
33
Board member evaluation
One of the key functions of the Board is to monitor and review
the Board evaluation framework. The Board works with the
nomination and remuneration committee to lay down the
evaluation criteria for the performance of the Chairman, the
Board, Board committees, and executive / non-executive /
independent directors through peer evaluation, excluding the
director being evaluated.
Independent directors have three key roles – governance,
control and guidance. Some of the performance
indicators, based on which the independent directors
are evaluated, include:
• The ability to contribute to and monitor our corporate
governance practices
• The ability to contribute by introducing international best
practices to address business challenges and risks
• Active participation in long-term strategic planning
• Commitment to the fulfillment of a director’s obligations
and fiduciary responsibilities; these include participation
in Board and committee meetings.
104 | Corporate governance report
Infosys Annual Report 2020-21
To improve the effectiveness of the Board and its committees,
as well as that of each individual director, a formal and rigorous
Board review is internally undertaken on an annual basis.
The Board had engaged Egon Zehnder, a leadership advisory
firm on board matters, to conduct Board evaluation for fiscal
2021. The evaluation process focused on Board dynamics, softer
aspects, committee effectiveness, information flow to the Board
or its committees, among other matters. The methodology
included various techniques such as questionnaire, one-
on-one discussions, etc. The recommendations were
discussed with the Board and individual feedback was
provided. Progress on recommendations from last year and
the current year’s recommendations were discussed. The
aspects of succession planning and committee composition
were also considered. The Board evaluation process was
completed during fiscal 2021.
Further, the evaluation process was based on the affirmation
received from the independent directors that they met the
independence criteria as required under the Companies Act
2013, the Listing Regulations and the NYSE listing manual.
Succession planning
The nomination and remuneration committee works with the
Board on the leadership succession plan to ensure orderly
succession in appointments to the Board and in senior
management. The Company strives to maintain an appropriate
balance of skills and experience within the organization and
the Board in an endeavor to introduce new perspectives while
maintaining experience and continuity.
By integrating workforce planning with strategic business
planning, the Company puts the necessary financial and
human resources in place so that its objectives can be met.
Our Board members bring to the table their broad and diverse
skills and viewpoints to aid the Company in advancing its
strategy. In addition, promoting senior management within
the organization fuels the ambitions of the talent force to earn
future leadership roles.
B. Board and executive leadership
compensation
Executive leadership compensation
Our executive compensation programs encourage reward
for performance. A significant portion of the executives’
total rewards is tied to the delivery of long-term corporate
performance goals in order to align with the interest
of the shareholders.
The nomination and remuneration committee determines
and recommends to the Board the compensation payable to
the directors. All Board-level compensation is approved at
the shareholders meeting or via postal ballot. Remuneration
for the executive directors comprises a fixed component and
a variable component, including stock incentives under the
2015 Stock Incentive Compensation Plan (“the 2015 Plan”)
and under the Infosys Expanded Stock Ownership Program
2019 (“the 2019 Plan”). The committee makes a periodic
appraisal of the performance of executive directors based on
a detailed performance matrix.
As required under the Listing Regulations effective April
1, 2019, the nomination and remuneration committee
recommends to the Board the payment of remuneration to
the senior management. The Nomination and Remuneration
Policy of the Company is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/nomination-remuneration-policy.pdf.
Non-executive and non-independent chairman’s
compensation
Nandan M. Nilekani, Chairman, voluntarily chose not to receive
any remuneration for his services rendered to the Company.
Independent directors’ compensation
The compensation payable to the independent directors
is limited to a fixed amount per year as determined and
approved by the Board, the sum of which does not exceed 1%
of net profit for the year, calculated as per the provisions of
the Companies Act, 2013. The Board reviews the performance
of independent directors on an annual basis.
The Board, while deciding the basis for determining the
compensation of the independent directors, takes various
things into consideration. These include global board
compensation benchmarking, participation of individual
directors in Board and committee meetings, other
responsibilities, such as membership or chairmanship of
committees, time spent in carrying out other duties, roles
and functions as prescribed in Schedule IV of the Act, Listing
Regulations and such other factors as the Board deems fit.
Shareholders at the 34th AGM held on June 22, 2015
approved a sum not exceeding 1% of the net profit of the
Company per annum, calculated in accordance with the
provisions of Section 198 of the Companies Act, 2013, to be
paid and distributed among some or all of the non-executive
directors of the Company in a manner decided by the Board.
This payment will be made with respect to the profits of the
Company for each year.
The amount payable to independent directors for the year ended
March 31, 2021 is ` 5.81 crore. Additionally, independent
directors are also reimbursed for expenses incurred in the
performance of their official duties. We confirm that none of
the non-executive directors received remuneration amounting
to 50% of the total remuneration paid to non-executive
directors during the year ended March 31, 2021.
Infosys Annual Report 2020-21
Corporate governance report | 105
The aggregate amount of remuneration (commission) was arrived at using the following criteria:
Particulars
Fixed Board fee
Board / committee attendance fee(1)
Non-executive chairman fee
Chairperson – audit committee
Members – audit committee
Chairperson – other committees
Members – other committees
Travel fee (per meeting)(2)
Incidental fees (per meeting)(3)
in ` crore
0.55
0.18
1.10
0.22
0.15
0.15
0.07
0.07
0.01
in US$
75,000
25,000
1,50,000
30,000
20,000
20,000
10,000
10,000
1,000
Notes:1 US$ = ` 73.11 as on March 31, 2021
(1) The Company normally has five regular Board meetings in a year. Independent directors are expected to attend at least four quarterly Board meetings
and the AGM.
(2) For directors based overseas, the travel fee shown is per Board meeting. This is based on the fact that additional travel time of two days will have to be
accommodated for independent directors to attend Board meetings in India.
(3) For directors based overseas, incidental fees shown is per Board meeting. This fee is paid to non-executive directors for expenses incurred during their
travel to attend Board meetings in India.
The Board believes that the above compensation structure is commensurate with global best practices in terms of remunerating
non-executive / independent directors of a company of similar size, and adequately compensates for the time and contribution
made by our non-executive / independent directors.
Remuneration to directors in fiscal 2021
Name of director
Fixed salary
Retiral
benefits
(B)
Total fixed
salary
(A+B)
Bonus /
incentives
/ variable
pay
Base
salary
(A)
Perquisites
on account of stock
options exercised(1)*
Non-executive and non-independent director
in ` crore
Commission
Total
Nandan M. Nilekani(2)
Executive directors
Salil Parekh(3)
U.B. Pravin Rao(4)
Independent directors
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine(5)
Bobby Parikh(6)
Chitra Nayak(7)
Dr. Punita Kumar-Sinha(8)
D.N. Prahlad(9)
–
5.69
4.22
–
0.38
0.19
–
6.07
4.41
–
12.62
5.05
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30.99
7.87
–
–
–
–
–
–
–
–
–
–
–
–
49.68
17.33
1.10
1.24
1.02
0.77
0.69
0.01
0.90
0.08
1.10
1.24
1.02
0.77
0.69
0.01
0.90
0.08
Notes: The details in the above table are on accrual basis.
(1) In accordance with the definition of perquisites under the Income-tax Act, 1961, the remuneration includes the value of stock incentives only on those
shares that have been exercised during the period. Accordingly, the value of stock incentives granted during the period is not included. The number of
stock incentives granted in fiscal 2021 is mentioned in the notes below. Independent directors are not entitled to any stock incentives.
(2) Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.
(3) a) Perquisites value of stock incentives on account of exercise of 2,92,991 Restricted Stock Units (RSUs) under the 2015 Plan and 1,00,604 RSUs under
the 2019 Plan during fiscal 2021.
b) On the recommendation of the nomination and remuneration committee, in accordance with the terms of his employment agreement, the Board
approved
i) the grant of 1,92,964 performance-based RSUs under the 2015 Plan effective May 2, 2020
ii) the grant of 25,775 annual time-based RSUs for fiscal 2021 under the 2015 Plan effective February 1, 2021
iii) the grant of 1,48,434 performance-based RSUs for fiscal 2021 under the 2019 Plan effective May 2, 2020. These RSUs will vest based on the Company’s
achievement of certain performance criteria as laid out in the 2019 Plan.
These RSUs will vest in line with the current employment agreement
c) The Board, on April 14, 2021, based on the recommendations of the nomination and remuneration committee, in accordance with the terms of his
employment agreement, approved the annual grant of performance-based RSUs of fair value ` 13 crore for fiscal 2022 under the 2015 Plan. The
committee also approved an annual grant of performance-based RSUs of fair value of ` 10 crore under the 2019 Plan. The RSUs under both the Plans
will be granted effective May 2, 2021 and the number of RSUs will be calculated based on the market price at the close of trading on May 2, 2021.
(4) a) Perquisites value of stock incentives on account of exercise of 45,349 RSUs under the 2015 Plan and 40,241 RSUs under the 2019 Plan during
fiscal 2021.
106 | Corporate governance report
Infosys Annual Report 2020-21
b) On the recommendations of the nomination and remuneration committee, in accordance with the terms of his employment agreement, the Board
approved the grant of 59,374 performance-based RSUs for fiscal 2021 under the 2019 Plan effective May 2, 2020. These RSUs will vest based on the
Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
(5) Uri Levine appointed as an independent director effective April 20, 2020
(6) Bobby Parikh appointed as an additional and independent director effective July 15, 2020
(7) Chitra Nayak appointed as an additional and independent director effective March 25, 2021
(8) Dr. Punita Kumar-Sinha retired as member of the Board effective January 13, 2021
(9) D.N. Prahlad resigned as a member of the Board effective April 20, 2020
* The RSUs were issued at par value
In accordance with the Listing Regulations, no employee, including key managerial personnel or director or promoter of a
listed entity, shall enter into any agreement for himself or on behalf of any other person, with any shareholder or any other
third party with regard to compensation or profit-sharing in connection with dealings in the securities of the Company,
without prior approval from the Board as well as from shareholders by way of an ordinary resolution. No such instances were
reported during fiscal 2021.
Employment agreements with executive directors
Details of shareholders’
approval on the agreements
Website links
Effective date
of executive
employment
agreement
January 2, 2018
Name of the
director
Salil Parekh,
Chief Executive
Officer and
Managing Director
The shareholders approved the
appointment and key terms of
the agreement vide postal ballot
concluded on February 20,
2018 and amended the terms
of remuneration as per the
resolution passed at the AGM
dated June 22, 2019.
Employment agreement:
https://www.infosys.com/investors/
reports-filings/Documents/CEO-executive-
employment-agreement2018.pdf
AGM notice:
https://www.infosys.com/investors/reports-
filings/documents/agm-notice2019.pdf
Employment agreement:
https://www.infosys.com/investors/
reports-filings/Documents/COO-executive-
employment-agreement2018.pdf
AGM notice:
https://www.infosys.com/investors/reports-
filings/documents/agm-notice2019.pdf
U.B. Pravin Rao,
Chief Operating
Officer and
Whole-time Director
November 1, 2016 The shareholders approved
the revised terms of agreement
vide postal ballot concluded on
March 31, 2017 and amended
the terms of remuneration as
per the resolution passed at the
AGM dated June 22, 2019.
Indemnification agreements
We have also entered into agreements to indemnify our
directors and officers for claims brought against them to
the fullest extent permitted under applicable law. These
agreements, among other things, indemnify our directors
and officers for certain expenses, judgments, fines and
settlement amounts incurred by any such person in any
action or proceedings, including any action by or in the right
of Infosys Limited, arising out of such persons’ services as
our director or officer, expenses in relation to public relations
consultation, if required.
C. Board meetings
Scheduling and selection of agenda items for
Board meetings
The tentative dates of Board meetings for the next fiscal are
decided in advance and published in the Annual Report
as part of Shareholder information. The Chairman and the
Company Secretary draft the agenda for each meeting, along
with explanatory notes, in consultation with the CEO & MD,
and distribute these in advance to the directors. Every Board
member can suggest the inclusion of additional items in the
agenda. The Board meets at least once a quarter to review the
quarterly results and other items on the agenda, and also on
the occasion of the AGM. Additional meetings are held when
necessary. Independent directors are expected to attend at
least four quarterly Board meetings and the AGM. However,
with the Board being represented by independent directors
from various parts of the world, it may not be possible for
each one of them to be physically present at all meetings.
Hence, we provide video / teleconferencing facilities to enable
their participation. Committees of the Board usually meet the
day before the Board meeting, or whenever the need arises
for transacting business. This year, these meetings were held
virtually in line with the relaxations provided by the Ministry
of Corporate Affairs and the Securities Exchange Board of
India. The Board members are expected to rigorously prepare
for, attend and participate in Board and applicable committee
meetings. Each member is expected to ensure their other
current and planned future commitments do not materially
interfere with their responsibilities with us.
Infosys Annual Report 2020-21
Corporate governance report | 107
Attendance of directors during fiscal 2021
During the year, seven Board meetings were held.
Board attendance
Name of the directors
Nandan M. Nilekani
Salil Parekh
U.B. Pravin Rao
Kiran Mazumdar-Shaw
Dr. Punita Kumar-Sinha(1)
D.N. Prahlad(2)
D. Sundaram
Michael Gibbs
Uri Levine(3)
Bobby Parikh(4)
Chitra Nayak(5)
AGM
June 27,
2020
1
Apr 20,
2020
2
Jul 14-15,
2020
Board meeting dates
4
5
Sep 14,
Oct 08,
2020
2020
3
Sep 03,
2020
6
Oct 13-14,
2020
7
Jan 12-13,
2021
Held
during
tenure
% of
attendance
7
7
7
7
7
1
7
7
7
6
0
7
7
6
6
7
1
7
7
7
6
0
100
100
86
86
100
100
100
100
100
100
% of attendance
100%
100%
100%
100%
89%
89%
100%
100%
Attended through video conference
Leave of absence
Attended
Attended through call
(1) Dr. Punita Kumar-Sinha retired as independent director effective January 13, 2021.
(2) D.N. Prahlad resigned as independent director on April 20, 2020.
(3) Uri Levine was appointed as independent director effective April 20, 2020.
(4) Bobby Parikh was appointed as additional and independent director effective July 15, 2020.
(5) Chitra Nayak was appointed as additional and independent director effective March 25, 2021.
Availability of information to Board members
The Board has unrestricted access to all Company-related
information, including that of our employees. At Board
meetings, managers and representatives who can provide
additional insights into the items being discussed are
invited. Information is provided to the Board members on
a continuous basis for their review, inputs and approval.
Strategic and operating plans are presented to the Board in
addition to the quarterly and annual financial statements.
Specific cases of acquisitions, important managerial decisions,
material positive / negative developments and statutory
matters are presented to the committees of the Board and
later, with the recommendation of the committees, to the
Board for its approval. As a process, information to directors
is submitted along with the agenda well in advance of Board
meetings. Inputs and feedback of Board members are taken
and considered while preparing the agenda and documents
for the Board meetings. At these meetings, directors can
provide their inputs and suggestions on various strategic and
operational matters.
Materially significant related party transactions
There have been no materially significant related party
transactions, monetary transactions or relationships between
the Company and its directors, the Management, subsidiaries
or relatives during the year, except for those disclosed in the
Board’s report. The links to the Related Party Transaction
Policy and the Policy on Material Subsidiaries are provided
in Annexure 8 to the Board’s report.
Details of total fees paid to statutory auditors
The details of total fees for all services paid by the Company
and its subsidiaries, on a consolidated basis, to the statutory
auditor and all entities in the network firm / network entity
of which the statutory auditor is a part, are as follows:
Type of service
Audit fees(1)
Tax fees
Others
Fiscal 2021
16
2
1
19
in ` crore
Fiscal 2020
15
2
1
18
(1) Includes audit and audit-related services
108 | Corporate governance report
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D. Board committees as on March 31, 2021
The Board
Stakeholders
relationship
committee
D. Sundaram
Bobby Parikh
U.B. Pravin Rao
Chitra Nayak
Audit committee
D. Sundaram
Michael Gibbs
Bobby Parikh
Nomination and
remuneration
committee
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Chairperson
Member
Corporate
social responsibility
committee
Kiran Mazumdar-Shaw
U.B. Pravin Rao
Chitra Nayak
Risk management
committee
D. Sundaram
Michael Gibbs
Bobby Parikh
Kiran Mazumdar-Shaw
Uri Levine
Chitra Nayak
The Board, at its meeting held on April 14, 2021, has instituted the following committees:
Environment, Social and Governance committee (ESG committee): The Board approved the constitution of an ESG committee. The ESG committee
shall comprise Kiran Mazumdar-Shaw as the Chairperson, and Chitra Nayak and Uri Levine as members.
Buyback committee: The Board, in order to execute the buyback procedures, formed the buyback committee comprising the COO, CFO, Deputy
CFO, Group General Counsel and Company Secretary as its members. The committee will execute buyback procedures as required under the SEBI
(Buy-Back of Securities) Regulations, 2018.
Committee governance
The Board, in consultation with the nomination and
remuneration committee, is responsible for assigning and
fixing terms of service for committee members. It delegates
these powers to the nomination and remuneration committee.
Normally, all the committees meet four times a year. The
recommendations of the committees are submitted to the
Board for approval. During the year, all recommendations of
the committees were approved by the Board.
The Chairman of the Board, in consultation with the Company
Secretary and the committee chairperson, determines
the frequency and duration of the committee meetings.
The quorum for meetings is the higher of two members or
one-third of the total number of members of the committee.
Infosys Annual Report 2020-21
Corporate governance report | 109
Audit committee
D. Sundaram
Chairperson and Financial Expert
The audit committee (“the Committee”) comprised three independent directors as on March 31, 2021:
1. D. Sundaram, Chairperson and Financial Expert
2. Michael Gibbs
3. Bobby Parikh
Bobby Parikh was appointed as a member of the Committee effective July 16, 2020. Dr. Punita Kumar-Sinha, on completion
of her term, retired as independent director and ceased to be a member of the Committee effective January 13, 2021.
The Company Secretary acts as the secretary to the audit committee.
Objectives of the Committee
The primary objective of the Committee is to assist the
Board with oversight of:
i. The accuracy, integrity and transparency of the Company’s
financial statements with adequate and timely disclosures;
ii. Compliance with legal and regulatory requirements ;
iii. The Company’s independent auditors’ professional
qualifications and independence;
iv. The performance of the Company’s independent auditors
and internal auditors; and
Inviting members of the Management, and at its discretion,
external experts in legal, financial and technical matters,
to provide advice and guidance
Reviewing its own charter, structure, processes,
membership periodically, and recommending proposed
changes to the Board for approval
Meeting at least four times in a year and not more than 120
days shall elapse between two meetings
v. Acquisitions and investments made by the Company.
Providing periodic feedback and reports to the Board
Process adopted by the Committee to
fulfill its objectives
Audit committee charter
Ensuring an effective and independent internal audit
function, which works to provide assurance regarding the
adequacy and operation of internal controls and processes
intended to safeguard the Company’s assets, effective and
efficient use of the Company’s resources and, timely and
accurate recording of all transactions
Meeting the independent auditor from time to time to
discuss key observations relating to the financial statement
for the relevant period
Providing an independent channel of communication
for the Chief Compliance Officer, internal auditor and
the independent auditor
In India, we are listed on the BSE Limited (BSE) and the
National Stock Exchange of India Limited (NSE). We are also
listed on NYSE in the US. In India, Regulation 18 of the
Listing Regulations and in the US, the Blue Ribbon Committee
set up by the U.S. Securities and Exchange Commission
(SEC) mandate that listed companies adopt an appropriate
audit committee charter. The Committee is guided by the
charter adopted by the Board, available on the Company’s
website, at https://www.infosys.com/investors/corporate-
governance/Documents/audit-committee-charter.pdf. The
charter is reviewed annually and was last amended on April
20, 2020, to keep it relevant to the current composition and
functions of the Committee.
110 | Corporate governance report
Infosys Annual Report 2020-21
Composition and attendance for fiscal 2021
100%
Attendance
9
Meetings
100%
Independence
3
Members
Committee governance
The Committee is comprised solely of independent directors
and fulfills the requirements of:
• Audit committee charter
• Section 149 and 177 of the Companies Act, 2013
• Regulation 18 of the Listing Regulations
• NYSE guidelines, as applicable
The Committee, to carry out its responsibilities efficiently and
transparently, relies on the Management’s financial expertise
and that of the internal and independent auditors. The
Management is responsible for the Company’s internal control
over financial reporting and the financial reporting process.
The independent auditors are responsible for performing an
independent audit of the Company’s financial statements in
accordance with the Generally Accepted Auditing Principles
and for issuing a report based on the audit.
The Committee met nine times during the year, which is more
than the requirement of the Companies Act, 2013 and the
Listing Regulations.
Attendance details of the audit committee are as follows:
Audit committee meeting
1
Apr
14 & 20,
2020
2
Jul
14 - 15,
2020
3
Sept
03,
2020
Name of the directors
D. Sundaram
Michael Gibbs
Bobby Parikh(1)
Dr. Punita Kumar-Sinha(2)
Committee meeting dates
7
Oct
13 - 14,
2020
5
Sept
15 - 16,
2020
6
Oct
08,
2020
4
Sept
14,
2020
8
Jan
12 - 13,
2021
9
Feb
23 - 24,
2021
Held
during
tenure
% of
attendance
9
9
7
8
9
9
7
8
100
100
100
100
% of attendance
100%
100%
100%
100%
100%
100%
100%
100%
100%
Attended through video conference
Attended
Notes:
(1) Bobby Parikh was appointed as a member of the Committee effective July 16, 2020.
(2) Dr. Punita Kumar-Sinha ceased to be a member of the Committee due to retirement effective January 13, 2021.
Infosys Annual Report 2020-21
Corporate governance report | 111
Audit committee report for the year ended March 31, 2021
Activities of the Committee during the year
Frequency
The Management shared the Company’s financial statements, prepared in accordance with the Indian
Accounting Standards (Ind AS) as specified under the Companies Act, 2013, read with the relevant
rules thereunder and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board, with the Committee.
The Committee held discussions with the auditors (whenever necessary, without the presence of
member of the Management) regarding the Company’s audited financial statements and sought the
auditors’ judgment on the quality and applicability of the accounting principles, the reasonableness
of significant judgments, the adequacy of disclosures in the financial statements and other matters
as the Committee deemed necessary.
The Committee undertook an annual performance evaluation of its own effectiveness.
The Committee also reviewed with independent auditors the nature and scope of the audit, reviewed
the audit engagement to ascertain adequacy and appropriateness.
Reviewed the Management’s discussion and analysis of the financial condition and results of operations
The Committee also discussed with the auditors the matters required by Public Company Accounting
Oversight Board (PCAOB) Auditing Standard 1301, as adopted by the PCAOB in Rule 3200.
Besides discussing the overall scope and plan for the internal audit and requirements of SEC, SEBI
and other regulatory bodies, the Committee also reviewed the adequacy and effectiveness of the
Company’s legal, regulatory and ethics compliance programs.
Recommended the selection and evaluation of the independent auditors in accordance with the
law. It also recommends to the Board the remuneration and terms of appointment of the internal,
secretarial and independent auditors.
Helped the Board monitor the Management’s financial reporting process
The Committee, on a periodic basis, reviewed the process adopted by the Management on impairment
of assets including financial assets and goodwill.
The Committee also reviewed the significant transactions including related party transactions
of the subsidiaries.
The Committee granted omnibus approval from time to time for the related party transactions
proposed to be entered into by the Company during fiscal 2021.
The Committee reviewed and approved transactions of the Company with related parties and
recommended to the Board for approval as and when necessary.
The Committee reviewed the performances of the acquired entities, approved and recommended
the investments, divestments and acquisitions made during the year for the approval of the Board.
The Committee monitored and reviewed mechanism to track the compliances under insider trading
Regulations and also reviewed the legal and compliance updates in addition to the investigations of
the whistleblower complaints received during the year.
The charter was reviewed annually and amendments were recommended on April 20, 2020 for the
approval of the Board.
Reviewed, approved and recommended amendments to Related Party Transaction Policy and policy
for determining materiality of disclosures
Reviewed the annual assessment of statutory and internal auditors conducted by the Management
Reviewed the treasury policy, code on fair disclosures and investor relations, and insider trading policy
annually and recommended the changes thereof
Frequency
A
Annually
Q
Quarterly
P
Periodically
Q
Q
A
A
A
A
Q
P
P
P
Q
A
Q
P
Q
P
A
A
A
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Infosys Annual Report 2020-21
Recommendations of the Committee
Based on its discussion with the Management and the auditors,
and a review of the representations of the Management and
the report of the auditors, the Committee has recommended
the following to the Board:
• The Company’s quarterly financial statements, prepared
in accordance with the Indian Accounting Standards (Ind
AS) as specified under the Companies Act, 2013, read with
the relevant rules thereunder and International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board
• The audited financial statements of Infosys Limited,
prepared in accordance with Ind AS, for the year ended
March 31, 2021 be accepted by the Board as a true and fair
statement of the financial status of the Company
• The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in accordance with
Ind AS, for the year ended March 31, 2021 be accepted
by the Board as a true and fair statement of the financial
status of the Group
• The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in Indian rupee in
accordance with IFRS, for the year ended March 31, 2021
be accepted by the Board as a true and fair statement of
the financial status of the Group
• The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in US dollar in
accordance with IFRS, for the year ended March 31, 2021,
be accepted by the Board as a true and fair statement of
the financial status of the Group and included in the
Company’s Annual Report on Form 20-F, to be filed with
the U.S. Securities and Exchange Commission (SEC)
• The appointment of Ernst & Young LLP as the internal
auditors of the Company for the year ending March 31,
2022, to review various operations of the Company
• The appointment of Parameshwar G. Hegde of Hegde
& Hegde, Practicing Company Secretaries, as secretarial
auditor for the year ending March 31, 2022 to conduct the
secretarial audit as prescribed under Section 204 and other
applicable sections of the Companies Act, 2013
• The Committee reviewed the physical and digital risks and
controls around scenarios arising on account of COVID-19
and the Company’s assessment of the impact of COVID-19
on various items of the financial statement ended March
31, 2021. The Committee also reviewed accounting
judgments and other matters in light of COVID-19.
• The Committee will be issuing a letter in line with
Recommendation No. 9 of the Blue Ribbon Committee
on audit committee effectiveness, to be provided in the
financial statements prepared in accordance with IFRS in
the Annual Report on Form 20-F.
Relying on its review and the discussions with the Management
and the independent auditors, the Committee believes that
the Company’s financial statements are fairly presented
in conformity with Ind AS and IFRS and that there is no
significant deficiency or material weakness in the Company’s
internal control over financial reporting. In conclusion,
the Committee is sufficiently satisfied that it has complied
with its responsibilities as outlined in the audit committee
charter. The Board accepted all recommendations made by
the audit committee.
Mumbai
April 14, 2021
Sd/-
D. Sundaram
Chairperson
Infosys Annual Report 2020-21
Corporate governance report | 113
Nomination and remuneration committee
Kiran Mazumdar-Shaw
Chairperson
The nomination and remuneration committee (“the Committee”) comprised three independent directors as on March 31, 2021:
1. Kiran Mazumdar-Shaw, Chairperson
2. D. Sundaram
3. Michael Gibbs
D.N. Prahlad resigned as independent director effective April 20, 2020. Consequently, he ceased to be a member of the
Committee. Effective April 21, 2020, Michael Gibbs was appointed as a member of the Committee.
Objectives and responsibilities of the Committee
The main objectives and responsibilities of the nomination
and remuneration committee of the Board is to:
i. Assist the Board in discharging its responsibilities relating
to compensation of the Company’s executive directors,
Key Managerial Personnel (KMP) and senior management
ii. Evaluate and approve the adequacy of the compensation
plans, policies, programs and succession plans
for
the Company’s executive directors, KMP
and senior management
iii. Formulate criteria for determining Board composition,
Board effectiveness, Board succession, and independent
functioning of the Board
iv. Oversee the Company’s nomination process for the
KMP and senior management and identify through a
comprehensive selection process, individuals qualified
to serve as directors, KMP and senior management
consistent with the criteria approved by the Board
v. Recommend the appointment and removal of directors,
for approval at the AGM
vi. Evaluate the performance of the Board, including
committees and individual directors
vii. L e a d e r s h i p
d e v e l o p m e n t
a n d
s u c c e s s i o n
planning of the organization
viii. Develop and maintain corporate governance policies
applicable to the Company
ix. Devise a policy on Board diversity and sustainability
114 | Corporate governance report
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Committee governance
Composition and attendance for fiscal 2021
93%
Attendance
5
Meetings
100%
Independence
3
Members
The Committee is comprised solely of independent directors
and fulfills the requirements of:
• Nomination and remuneration committee charter
• Section 178 of the Companies Act, 2013
• Regulation 19 of the Listing Regulations
• NYSE guidelines, as applicable
The Committee oversees key processes through which the
Company recruits new members to its Board, and the processes
through which the Company recruits, motivates and retains
outstanding senior management as well as the Company’s
overall approach to human resources management.
The Board amended the charter of the nomination and
remuneration committee and Nomination and Remuneration
Policy on April 14, 2021 and April 20, 2020, respectively. The
committee charter and policy are available on our website, at:
Charter: https://www.infosys.com/investors/corporate-
gover nance/documents/nomination-remuneration-
committee-charter.pdf
P o l i c y :
h t t p s : / / w w w. i n f o s y s . c o m / i n v e s t o r s /
c o r p o r a t e g o v e r n a n c e / d o c u m e n t s / n o m i n a t i o n -
remuneration-policy.pdf
The nomination and remuneration committee met five times
during fiscal 2021.
Attendance details of the nomination and remuneration committee are as follows:
Nomination and remuneration committee meeting
Name of the directors
1
Apr 20, 2020
Kiran Mazumdar-Shaw
Committee meeting dates
3
Oct 13, 2020
4
Jan 12, 2021
2
Jul 14, 2020
5
Mar 30, 2021
Held
during
tenure
% of
attendance
5
5
4
1
4
5
4
1
80
100
100
100
D. Sundaram
Michael Gibbs(1)
D.N. Prahlad(2)
% of attendance
100%
100%
100%
100%
66.67%
Attended through video conference
Attended
Attended through call
(1) Michael Gibbs was appointed as a member of the Committee effective April 21, 2020.
(2) D.N. Prahlad ceased to be a member of the Committee due to resignation effective April 20, 2020.
Infosys Annual Report 2020-21
Corporate governance report | 115
Nomination and remuneration committee report for the year ended March 31, 2021
Activities of the Committee during the year
Frequency
The Committee made regular reports to the Board regarding its actions and made recommendations
to the Board as appropriate.
Recommended the appointment of Egon Zehnder, a leadership advisory firm on board matters, to
assist in evaluating the members of the Board, its committees, and the Board as a whole. Accordingly,
the exercise was completed during the fiscal 2021.
Undertook a review of the succession plans for key leadership positions, and helped to shape and
monitor the development plans of key leadership personnel
Reviewed the responsibilities of the Board-level committees and based on the expertise of the
members of the Board, recommended for the reconstitution of the Board-level committees
Reviewed and recommended to the Board the constitution of the Environment, Social and Governance
committee effective April 14, 2021
Reviewed the overall Board composition and recommended the appointment of Uri Levine, Bobby
Parikh and Chitra Nayak as members of the Board during the year
Based on evaluation, recommended the reappointment of Michael Gibbs for a second term of five years
Based on evaluation, recommended the reappointment of U.B. Pravin Rao who is eligible to retire by
rotation at the ensuing AGM
Reviewed the measures taken by the Company for the health, safety and wellbeing of employees and
for business continuity during COVID-19
Placed a substantial focus on improving the overall diversity of the workforce and enhancing employee
engagement through real-time feedback from employees
Stock incentives were approved and granted to eligible employees of the Company and subsidiaries
during the year under the 2015 Plan and the 2019 Plan
Designing, benchmarking and continuously reviewing the compensation program for the Board and
the CEO & MD against the achievement of measurable performance goals
The Committee undertook an annual performance evaluation of its own effectiveness.
Reviewed, approved and
Remuneration Committee Charter
recommended amendments
to
the Nomination and
The Committee reviewed various initiatives undertaken by the Company to ensure the safety, security
and wellbeing of employees, as well as their overall development through learning programs and
on-the-job training.
Frequency
A
Annually
Q
Quarterly
P
Periodically
Q
A
P
P
P
P
A
A
P
P
P
P
A
A
Q
Bengaluru
April 13, 2021
Kiran Mazumdar-Shaw
Chairperson
Sd/-
116 | Corporate governance report
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Corporate social responsibility committee
Kiran Mazumdar-Shaw
Chairperson
The CSR committee (“the Committee”) comprised two independent directors and a whole-time director as on March 31, 2021:
1. Kiran Mazumdar-Shaw, Chairperson
2. U.B. Pravin Rao
3. Chitra Nayak
Dr. Punita Kumar-Sinha, on completion of her term, retired as independent director and ceased to be a member of the Committee
effective January 13, 2021. Salil Parekh was inducted as a member of the Committee effective January 14, 2021. Effective March
25, 2021, Chitra Nayak was appointed as a member of the Committee and Salil Parekh ceased to be a member of the Committee.
Our CSR philosophy
Committee governance
We focus on our social and environmental responsibilities to
fulfill the needs and expectations of the communities around
us. Our CSR is not limited to philanthropy, but encompasses
holistic community development, institution-building and
sustainability-related initiatives.
Objectives and responsibilities of the Committee
The primary objective of the Committee is to assist the Board
in fulfilling its corporate social responsibility. The Committee
has overall responsibility for:
i. Identifying the areas of CSR activities
ii. Recommending the amount of expenditure to be incurred
on the identified CSR activities
iii. Implementing and monitoring the CSR Policy from time
to time
iv. Coordinating with Infosys Foundation or other such
agency in implementing programs and executing initiatives
as per the CSR Policy of the Company
v. Reporting progress of various initiatives and in making
appropriate disclosures on a periodic basis
vi. Other items / matters prescribed under applicable law or
prescribed by the Board of directors from time to time
The Committee comprised two independent directors and the
Chief Operating Officer and Whole-time Director and fulfill
the requirements of:
• Section 135 of the Companies Act, 2013
• CSR committee charter
The CSR committee is responsible for overseeing the
activities / functioning of the Infosys Foundation, Infosys
Foundation USA and other initiatives undertaken by the
Company, including in Australia, in identifying the areas of
CSR activities, programs and execution of initiatives as per
defined guidelines. The Foundations, in turn, guide the CSR
committee in reporting the progress of deployed initiatives,
and making appropriate disclosures on a periodic basis.
The CSR committee met four times during fiscal 2021.
Composition and attendance for fiscal 2021
100%
Attendance
67%
Independence
4
Meetings
3
Members
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Infosys Annual Report 2020-21
Attendance details of the CSR committee are as follows:
CSR committee meeting
Name of the directors
Kiran Mazumdar-Shaw
U.B. Pravin Rao
Chitra Nayak(1)
Salil Parekh(2)
Dr. Punita Kumar-Sinha(3)
% of attendance
Committee meeting dates
1
Apr 17, 2020
2
Jul 14, 2020
3
Oct 13, 2020
4
Jan 06, 2021
Held
during
tenure
% of
attendance
100%
100%
100%
100%
4
4
0
0
4
4
4
0
0
4
100
100
100
Attended through video conference
Attended
(1) Chitra Nayak was appointed as a member of the Committee effective March 25, 2021.
(2) Salil Parekh was appointed as a member of the Committee effective January 14, 2021 and ceased to be a member of the Committee effective March 25, 2021.
(3) Dr. Punita Kumar-Sinha ceased to be a member of the Committee due to retirement effective January 13, 2021.
CSR committee policy and charter
The Committee, with the approval of the Board, has adopted the CSR Policy as required under Section 135 of the Companies
Act, 2013. The CSR Policy of the Company is available on our website, at:
https://www.infosys.com/investors/corporate-governance/documents/corporate-social-responsibility-policy.pdf
The Company has also adopted the CSR committee charter, which is available on our website, at:
https://www.infosys.com/investors/corporate-governance/documents/corporate-social-responsibility-committee-charter.pdf
CSR report
The CSR report, as required under the Companies Act, 2013, for the year ended March 31, 2021, is attached as Annexure 6
to the Board’s report.
The Committee, on a periodic basis, reviewed and approved the budget and disbursement for Infosys Foundation and Infosys
Foundation USA. The Committee ensures that at least 2% of the average net profits of the Company made during the three
immediately preceding financial years is spent for CSR activities in India during the year and the CSR amount spent in the US
and Australia is over and above the statutory requirement in India. Accordingly, the Company spent a sum of ` 325.32 crore
during the year on various CSR programs in India. The unspent amount of ` 49.52 crore towards our ongoing digital literacy
initiative will be transferred to the unspent CSR account within 30 days from the end of the financial year, in accordance with
the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Bengaluru
April 06, 2021
Kiran Mazumdar-Shaw
Chairperson
Sd/-
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Corporate social responsibility (CSR)
Infosys Headstart
In alignment with the Company’s ESG Vision 2030, our
initiative for enabling digital skills at scale, Infosys Headstart,
has been identified as a flagship intervention
to empower people, communities, and society.
Through this initiative, Infosys plans to
empower over 10 million people with digital
and life skills by 2025. The reach will include
students across India in the age group of 10-
22 years as well as lifelong learners.
Infosys Headstart (https://infosysheadstart.
onwingspan.com) is a platform that includes
learning content developed by Infosys and
leading content providers, spanning across
digital and emerging technologies and life
skills. For a holistic learning experience, the platform has
technology and soft skills playgrounds, programming
challenges, and social learning features. Infosys Headstart
is powered by Infosys Wingspan®, our integrated digital
learning and collaboration platform.
A dedicated team is collaborating with the Education
Training and Assessment unit, the DC CSR teams, NGOs, and
established networks of identified educational
institutions. To reach the target of 10 million+
learners in the next five years, Infosys Headstart
is collaborating with educational institutions
by expanding the in-house Campus Connect
and Catch Them Young programs, along with
conducting masterclasses and competitive
events on the platform. Dedicated Maker Labs
are planned in major Indian cities to provide
hands-on learning opportunities on emerging
technologies. Soon, Infosys Headstart will be
available in major Indian languages.
40,000+
learners, in
6 weeks from
150+ educational
institutions
The platform was soft-launched for volunteered institutions
in February 2021. Within six weeks, 40,000+ learners from
150+ educational institutions had leveraged the platform.
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Infosys Foundation
Established 25 years ago, Infosys Foundation has become synonymous with Corporate Social
Responsibility in India, setting benchmarks in how the corporate community can bring about
social change. Working in the areas of education, art and culture, healthcare, rural development
and destitute care, the Foundation has shown the way for many beneficiary organizations
to effectively uplift underprivileged communities. This financial year was significantly
different for the Foundation, which decided to take the pandemic head on, and tackle the
challenge of maintaining social distance while staying close to the projects and responsibilities
it is committed to.
“Infosys Foundation has plunged right into COVID-19 relief efforts, armed with the experience of
dealing with 14 natural calamities over the years. The relief work we began in March 2020 continues
and has diversified into many sectors. The pandemic has presented unprecedented challenges for
all of us. But I believe that the world that emerges through this trial by fire will be a courageous new
one, fortified by the fighting human spirit and advances in technology. And so we walk together,
united, into a brave new world.“
– Sudha Murty,
Chairperson, Infosys Foundation
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Healthcare
Beneficiary:
Bowring and Lady Curzon Medical College & Research Institute, Chinmaya Mission Hospital (CMH)
Standing by our frontline warriors against the virus
Infosys Foundation set up a COVID-19 hospital for Bowring Hospital and special wards for CMH.
2020 was devastated by a virus. And the heroes of the war
against the virus were the members of our medical community.
But each passing day made us acutely aware of the struggles
faced by our hospitals, to meet safety requirements for their
staff, make space for patients, and curb the fatality rates. As
a trust dedicated to philanthropy, Infosys Foundation could
not stay uninvolved.
The Foundation was one of the first CSR bodies in the
country to announce a relief package of ` 100 crore for the
pandemic in March 2020. The relief work, which began with
setting up of COVID-exclusive hospitals and wards, supply
of medical equipment, PPE kits and sanitizers continued
pan-India through 2020-21 and is continuing this year.
The Bowring & Lady Curzon Medical College & Research
Institute, Bengaluru and Chinmaya Mission Hospital (CMH)
were among the first to get the Foundation’s support.
Bowring Hospital: Getting a second facility up and running
Bowring Hospital was one of the earliest city hospitals to be
converted into a dedicated COVID-19 hospital. It wanted
to extend COVID care to the new Charaka Superspeciality
Hospital on its premises but the construction was yet to be
completed. The Foundation quickly stepped in with funds
for infrastructure and equipment. A 28-bed Intensive Care
Unit, with ventilators, multi-parameter monitors, emergency
cart, ambu bag, intubation set and bedside lockers, was set
up. For the general ward and casualty section, 140 beds, and
equipment including a mobile X-ray machine, ECG machine
and trolleys were provided. A cath lab was set up for the
cardiology unit, along with two modular operation theaters
with necessary infrastructure. The other items provided
included a diesel generator, compressor, linen and blankets,
furniture, nurse stations, CCTV surveillance systems, UPS,
EPABX, medical gas pipeline, HVAC, air conditioning and all
electrical and lighting supplies.
A total of 600 COVID-19 patients were treated at the Charaka
hospital till March 31, 2021.
Chinmaya Mission Hospital: Where ventilators spell hope
At CMH, following the government directive, 84 beds were
made available exclusively for COVID-19 patients in June
2020. To create fully functional COVID-19 wards, the
immediate requirement was equipment, and the Foundation
pitched in right away.
For the COVID wards, the Foundation provided 12 ventilators,
which have subsequently treated over 300 patients, an echo
probe machine, which was used for 3,900 patients, a full
digital radiography system for the Casualty ward, 15,200
PPE kits and supplies of hand sanitizers for the staff. A car
was provided by the Foundation to fetch consultants for
emergencies, especially during the night. The Foundation
also donated a fund towards the expenses of treatment of
underprivileged patients. An amount was donated every
month from August to November 2020 to meet the salary
expenses of the medical staff to help the hospital recover from
its losses due to the lockdown disruption.
Over 1,200 COVID positive patients were treated at
CMH till March 2021.
Help in time saves lives
Bowring and CMH Hospitals acknowledged that the timely
intervention of Infosys Foundation made all the difference
to ensure that high-quality medical care was provided at the
time of critical need. Working with these two hospitals, the
Foundation was able to provide the medical community with
the help and support it needed while plunging headlong into
an unprecedented and uncertain times.
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Education
Beneficiary:
Inali Foundation
How Aarohan became a turning point
Prashant Gade was a Platinum award winner in the first edition of Infosys Foundation’s Aarohan Awards.
Prashant Gade, Founder of Inali Foundation, which works to
provide affordable prosthetic limbs, was Platinum award winner at
the first edition of Infosys Foundation’s Aarohan Social Innovation
Awards in 2018. For both Prashant and Inali Foundation, Aarohan
was the beginning of a successful partnership and journey towards
making a social change. In Prashant’s own words…
After completing school, I enrolled for an engineering degree.
Soon, I realized that neither was I learning anything, nor was
I finding answers to what I wanted to do in life. Eventually,
I dropped out, found a job to sustain myself and enrolled
in a distance learning Fab Academy course run by the
Center for Bits and Atoms at the Massachusetts Institute of
Technology (MIT), Boston.
To successfully complete the course, each student had to
work on a project. It was then that I met Nicolas Huchet
from France. Nicolas had lost his right arm but instead of
seeing it as a disability, he built his own bionic arm. That was
my first inspiration.
Soon after, I met a seven-year old girl born without arms. I
wanted to give her a chance at life. The company I approached
said the estimated cost of both arms would be ` 24,00,000!
That’s when I started to use my insights from the course to
prototype prosthetics for those with a missing limb below
the elbow. With cheap components, the initial prototypes I
created were very low-cost (under ` 5,000).
A stepping stone
Around that time, I heard about the Aarohan Social
Innovation Awards but did not know who was conducting
it. While submitting my entry, I realized it was by the
Infosys Foundation and the award focused on innovations
driven by empathy towards the less privileged ‘in the lab
called life’. I saw a video by Sudha Murty and I felt she was
talking directly to me.
When I was named one of the winning social innovators that
year, it was the tipping point. Beyond my personal gain, Inali
Foundation – the trust I began, had come home.
With this recognition and fund infusion, Inali Foundation
was formally registered as a Section 8 company on May
11, 2018. The Aarohan Award also brought us credibility
and validated our innovation within the ecosystem of
persons with disability.
The funding allowed us to deepen our research and
development. We now work on different variations of
prosthetics from basic mechanical and electrical to advanced
sensor-based versions. The Infosys Foundation connection
has sparked interest among other corporate and individual
donors as well, enabling us to affix these prosthetics free-of-
charge at camps we run across the country.
Humbled and raring to go
Recently, Inali Foundation and its work were featured in the
book, When I Grow Up, I Want to Be…. Shortly after, I also
got an opportunity to appear on the Karamvir episode of
Kaun Banega Crorepati hosted by Amitabh Bachchan.
During the early days of the pandemic, there was an
urgent need for a Rapidly Manufactured Ventilator Systems
(RMVS). We quickly got ready with the initial designs
and Infosys Foundation deployed a team from advanced
engineering to oversee our designs, with daily consultations
and detailed inputs.
Our association with Infosys Foundation has opened many
doors for us. Thanks to it, we are now on a mission to replace
the word disability with ability.
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Art and culture
Beneficiary:
India Foundation for the Arts (IFA)
Helping the arts find ways to endure, adapt and sustain
Infosys Foundation is partnering with IFA to support 11 projects by artists, teachers and scholars.
The arts is one of the biggest changemakers in both the
global and the local economy. In a world ravaged by a
brutal pandemic and the resultant lockdowns, the arts have
connected us in a restorative circle and brought different
perspectives to the forefront.
Organizations like the India Foundation for the Arts (IFA)
have been working towards supporting artists and cultural
practitioners, and Infosys Foundation has been a long-term
partner in its efforts.
IFA has been supporting the arts and culture since 1995, and
the Foundation has been supporting IFA since 2008, with
projects including the production of a film on the history
and aesthetics of the mobile theatre of Assam, performance
of plays, publication of the book on Kantha embroidery
and Patachitra art form, supporting Mir musicians, and the
publication of the book on Kasuti embroidery.
As soon as the pandemic arrived, the artists were among
the worst hit, as the primary sources of their income, i.e.
live performances, exhibitions and travelling assignments,
got immediately suspended. It was at this juncture that IFA
reached out to the Foundation for supporting 11 grants across
its Arts Practice, Arts Education, and Project 560 programs.
Creative common grounds
The Foundation committed to supporting 11 grantees of
IFA, including a theatre group, teachers, and artists with
projects in government schools, institutions, and urban
communities in Bengaluru. Apart from these primary
beneficiaries, the Foundation’s grant will also help secondary
beneficiaries, such as schoolchildren, teachers, theater
practitioners and audiences.
During the initial weeks and months, there was hope that
the worst would be over soon. But, as the months unfolded,
the fragile gig economies that barely managed to support
artists earlier, had their backs broken. The worry wasn’t just
about financial sustenance but also of creative and artistic
continuity and the ability to adapt to the radical changes
everywhere. Online spaces, for instance, while providing new
opportunities for work, came with their share of challenges –
the primary one being access.
So we may still hope
IFA reached out to the Foundation with suggestions for fixing
some long-standing problems in the arts and arts ecology,
including systemic and structural inequalities and injustices.
These fixes included:
• Creating online platforms to pull in online audiences,
• Networking and building collaborations,
• Rethinking arts-integrated pedagogies for school education
and arts pedagogies for teaching in art schools,
• Organizing skill-building workshops so that artistes can
monetize their art through digital technology, and
• Discussing key issues facing the arts.
The IFA-Infosys Foundation partnership is supporting 11
projects undertaken by artists, scholars and teachers, and
encourage them to continue their work.
In these times of isolation and uncertainty, the arts have not
only sustained people but also inspired them to fight for
better times. Artists work to mend broken worlds and Infosys
Foundation is committed to support those who help us find
hope and inspiration.
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Rural development
Beneficiary:
Society for Education Action and Research in Community Health (SEARCH)
Driven by purpose, led by youth
Infosys Foundation’s support extends to two batches of NIRMAN, SEARCH’s social program for youth.
What is of greater value – purpose or ambition? The
COVID-19 pandemic has brought us face to face with this
question again. Selfless acts of people around the globe
helped fellow citizens get through this period of fear and
uncertainty. Infosys Foundation has always been mindful
of organizations which go the extra mile to make a social
impact through actions centered on purpose and social good,
organizations like Society for Education Action and Research
in Community Health (SEARCH).
SEARCH was founded 35 years ago to work in the remote
and underdeveloped district of Gadchiroli in Maharashtra,
focusing on healthcare delivery, community health programs
and public health research. In 2006, SEARCH began
NIRMAN, a program to encourage young persons to find
a broader purpose to their lives, to spur social action and
cultivate a vibrant and supportive community. Infosys
Foundation, already a partner for SEARCH, decided to
support NIRMAN for 2020-22.
Trained for social action
A rigorous selection process is undertaken to choose each
batch of around 160 participants between the ages of 18 and
28. They undergo three residential workshops during the
course, along with study visits, educative sessions, reading
assignments, internships, fellowships, individual mentoring,
individual volunteering, and group activities. After completing
the training, the participants develop / decide their area of
interest for social contribution. A total of 1,419 participants
have undergone this training so far and 444 alumni have
worked full-time on specific social challenges across India.
The pandemic upset the planned schedule for the 10th
batch. However, a batch of 160 participants, including a
large number of medical students, was selected in due course.
The training workshops, which require physical attendance,
had to be put on hold till March-April 2021. Meanwhile, the
group was given assignments, reading and action plans and
one-on-one mentoring. As part of the publicity and outreach
programs, online lectures, webinars and sensitization modules
were organized with 21 educational institutes, reaching more
than 10,000 viewers.
The online selection of the 11th batch of NIRMAN has also been
completed; 160 candidates were selected from a pool of 1,050
applications. The pandemic hindered NIRMAN’s volunteering
program, Krutee NIRMAN, too but 20 volunteers managed
to contribute more than 290 person days for social action.
The Foundation also committed to aid capacity-building of
the 12-member NIRMAN team. As part of this, more than
45 presentations were made on research papers, reports and
social initiatives, besides reading and sharing of relevant
literature, interactions with resource persons, skill-building,
one-on-one coaching, online workshops and field visits.
Also part of the partnership are three Infosys Foundation
fellowships to encourage full time work on social challenges.
One of the candidates has already received it and two more
have been identified.
Bringing change back to the roots
The effects of NIRMAN are already visible. The participants
are on their way to becoming changemakers. But, NIRMAN
is not merely a program for social change, it’s the beginning
of a revolution led by the youth. Infosys Foundation believes
this association has the potential to bring lasting change in
the country’s social landscape.
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Destitute care
Beneficiary:
Rajya Sainik Board
For our heroes, when they need us
The Infosys Foundation Sainik Sadan helps ex-servicemen and their families in Bhubaneswar.
A crisis brings heroes to the fore. During the pandemic, we
saw many heroes, who battled on the frontlines to ensure
the safety of others. But what of those other heroes, who
risk their lives every day for the sake of others – our army
men who stand guard at the borders and ensure our security?
Infosys Foundation has been proactively supporting projects
that help soldiers and their families, when they retire or
are martyred. In one such endeavor, the Foundation has
helped to build a Sainik Sadan for the Rajya Sainik Board,
Odisha in Bhubaneswar.
The Rajya Sainik Board, Odisha, which is under the
administrative control of the Home Department, Government
of Odisha, acts as a nodal agency for coordinating and
implementing various welfare measures of the central and
state governments. The Board is committed to promoting
welfare measures for war widows, widows of ex-servicemen,
World War II veterans and their widows and dependents from
Odisha, and the families of the serving soldiers of Odisha.
At present, around 42,500 ex-servicemen and widows are
registered, and the total dependency is more than 2,00,000.
A place of comfort for soldiers
Infosys Foundation and the Rajya Sainik Board entered into
an agreement a few years ago to construct a Sainik Sadan for
ex-servicemen in Bhubaneswar. The building is expected to
be completed in May 2021.
The Infosys Foundation Sainik Sadan, as it is called, is spread
over 12,400 sq.ft. with ground and three floors and a terrace.
The construction work of the building included civil works,
finishing, interiors, HVAC (heating, ventilation and air
conditioning) work, plumbing and electrical work, glazing
and a passenger elevator.
The ground floor of the building will have a 40-seater dining
area, kitchen and storeroom. The first floor will have two
single-occupancy rooms and four dormitories with a total of
17 beds. The second floor will have four dormitories with
a total of 21 beds and the third floor will have one double-
occupancy room and three dormitories with 18 beds in all.
Telling them we care
Most ex-servicemen visit Bhubaneswar or Cuttack for
medical purposes, educational needs of their wards or for
administrative and legal requirements. Around 200-300 ex-
servicemen and their dependents visit these cities daily and
at least 80-100 of them require accommodation for a night
or two. A total of 56 people, including ex-servicemen, war
widows, widows of ex-servicemen, disabled ex-servicemen
and their dependents, can lodge in the Sainik Sadan daily.
Beyond building a shelter for ex-servicemen who require it,
the Infosys Foundation Sainik Sadan is a way of thanking our
brave soldiers who have dedicated their lives to the service
of the nation. Infosys Foundation is proud to play a part in
showing this gratitude.
For more details on the Foundation’s activities, visit https://www.infosys.com/infosys-foundation.
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Infosys Foundation USA
Digital Making at Home workshop conducted by Infosys Foundation
USA in association with Raspberry Pi
The Infosys Foundation USA was founded in 2015 with the
mission of expanding computer science and maker education
to K-12 students and teachers across the US – specifically
to increase access to communities that are traditionally
underrepresented in these fields. The Foundation focuses
on professional learning and capacity-building amongst
teachers and partners with nonprofits to bring programming
directly to students. It also engages in activities that inspire
everyone to be creators, not just consumers, of technology.
The Foundation has reached over one million teachers
since its inception.
Infosys Science Foundation
The Infosys Prize, governed by the Infosys Science Foundation
(ISF), recognizes stellar research connected to India. The
US$ 100,000 prize is given to contemporary scholars for
outstanding contributions to fundamental and applied
research in Engineering and Computer Science, Humanities,
Life Sciences, Mathematical Sciences, Physical Sciences
and Social Sciences. The intent of the Prize is twofold – to
recognize and encourage extraordinary talent early so they
may scale greater heights, and to create role models to inspire
Indian students to pursue research.
The current pandemic has served to emphasize the importance
of scientific output on societal and economic progress and we
are glad to continue highlighting and rewarding some of the
most brilliant scientists of our time.
The winners of the 2020 prize were announced in a virtual
ceremony on December 2, 2020. They were felicitated by the
chief guest, Prof. S.R. Srinivasa Varadhan, Abel Prize winner
and Professor, Courant Institute of Mathematical Sciences,
New York, US. In his speech, he said, “As the research efforts
of most of our scientists impact our daily lives, it places an
ethical responsibility on them. The primary responsibility,
however, rests collectively with societies, governments
and international organizations to regulate and control the
harmful side effects of scientific research and discovery.”
Prof. Hari Balakrishnan from MIT won the Infosys Prize
2020 for Engineering and Computer Science for his broad
contributions to computer networking and mobile and
wireless systems. Prof. Prachi Deshpande from the Centre
for Studies in Social Sciences, Kolkata won the prize in
Humanities for her nuanced and sophisticated treatment
of South Asian historiography. The Life Sciences prize was
awarded to Prof. Rajan Sankaranarayanan from the Centre for
Cellular and Molecular Biology, Hyderabad for his fundamental
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Last year, the activities of the Infosys Foundation USA became
more important than ever as schools, teachers and students
were among those most impacted by the pandemic. The
K-12 community largely switched to remote learning, so
the Foundation expanded the newly-launched Pathfinders
Online Institute, its free digital learning platform, to provide
computer science and maker education for students, teachers
and families. It also worked with partner organizations to
convene a series of live and on-demand virtual events, such as
trainings in common classroom technology tools, and coding
and making workshops. The Pathfinders Summer Institute
and the Pathfinders Winter Institute, the Foundation’s
signature residential-style teacher professional development
programs, also transitioned to a virtual format. This year,
teachers gathered online via a virtual campus to deep-
dive into coding, robotics and making curricula. Through
Pathfinders, the Foundation trained 700 K-12 teachers who
will collectively reach over 45,000 students in the next year.
It also continued to support hands-on learning through
the #InfyMakers Awards competition and recognized 10
organizations for furthering maker-centered learning.
For more information about the Foundation, visit:
http://www.infosys.org/usa.
contributions towards understanding one of the most basic
mechanisms in biology. Prof. Sourav Chatterjee from Stanford
University won the prize in Mathematical Sciences for his
ground-breaking work in probability and statistical physics.
Prof. Arindam Ghosh from the Indian Institute of Science,
Bengaluru, won the Physical Sciences prize for developing
atomically thin two-dimensional semiconductors to build
a new generation of functional electronic, thermoelectric
and optoelectronic devices. The prize in Social Sciences
(Economics) was awarded to Prof. Raj Chetty from Harvard
University for his pioneering research in identifying barriers
to economic opportunity, and for developing solutions that
help people escape poverty towards improved life outcomes.
The winners were chosen by jury panels chaired by:
Prof. Arvind from MIT (Engineering and Computer
Science); Prof. Akeel Bilgrami from Columbia University
(Humanities); Prof Mriganka Sur from MIT (Life Sciences);
Prof. Chandrashekhar Khare from the University of California,
Los Angeles (Mathematical Sciences); Prof. Shrinivas Kulkarni
from Caltech (Physical Sciences); and Prof. Kaushik Basu
from Cornell University (Social Sciences).
Top row (L-R): Hari Balakrishnan, Prachi Deshpande, Rajan
Sankaranarayanan, Sourav Chatterjee, Arindam Ghosh, Raj Chetty
Bottom row (L-R): Arvind, Akeel Bilgrami, Mriganka Sur, Chandrashekhar
Khare, Shrinivas Kulkarni, Kaushik Basu
Visit www.infosys-science-foundation.com to read more.
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Risk management committee
D. Sundaram
Chairperson
The risk management committee (“the Committee”) comprised six independent directors as on March 31, 2021:
1. D. Sundaram, Chairperson
2. Kiran Mazumdar-Shaw
3. Michael Gibbs
4. Uri Levine
5. Bobby Parikh
6. Chitra Nayak
D.N. Prahlad resigned as independent director effective April 20, 2020. Consequently, he ceased to be the Chairperson and
member of the Committee. Effective April 21, 2020, D. Sundaram was appointed as the Chairperson and Uri Levine was
appointed as a member of the Committee. Bobby Parikh was inducted as a member of the Committee effective July 16, 2020.
Effective March 25, 2021, Chitra Nayak was appointed as a member of the Committee.
Objectives and responsibilities of the Committee
The primary objectives of the Committee are to assist the
Board in the following:
i. To assist the Board in fulfilling its corporate governance
oversight responsibilities with regard to the identification,
evaluation and mitigation of strategic, operational, and
external environment risks
v. To evaluate significant risk exposures of the Company and
assess the Management’s actions to mitigate the exposures
in a timely manner
vi. To evaluate risks related to cybersecurity and ensure
appropriate procedures are in place to mitigate these risks
in a timely manner
ii. To monitor and approve the enterprise risk management
framework and associated practices of the Company
iii. To periodically assess risks to the effective execution of
business strategy by reviewing key leading indicators in
this regard
vii. To coordinate its activities with the audit committee in
instances where there is any overlap with audit activities
viii. To review and reassess the adequacy of the Charter
periodically and recommend any proposed changes to
the Board for approval
iv. To periodically review the risk management processes and
practices of the Company and ensure that the Company
is taking the appropriate measures to achieve prudent
balance between risk and reward in both ongoing and
new business activities
ix. To ensure access to any internal information necessary to
fulfill its oversight role and obtain advice and assistance
from internal or external legal, accounting or other
advisors
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Committee governance
Composition and attendance for fiscal 2021
The Committee is comprised solely of independent directors
and fulfills the requirements of:
• Risk management committee charter
• Regulation 21 of the Listing Regulations
• NYSE guidelines, as applicable
The Committee met four times during fiscal 2021.
94%
Attendance
100%
Independence
4
Meetings
6
Members
Attendance details of the risk management committee are as follows:
Risk management committee meeting
Name of the directors
D. Sundaram(1)
Kiran Mazumdar-Shaw
Michael Gibbs
Uri Levine(2)
Bobby Parikh(3)
Chitra Nayak(4)
D.N. Prahlad(5)
% of attendance
Committee meeting dates
1
Apr 17, 2020
2
Jul 14, 2020
3
Oct 11, 2020
4
Jan 07, 2021
Held
during
tenure
% of
attendance
4
4
4
3
2
0
1
3
4
4
3
2
0
1
75
100
100
100
100
100
75%
100%
100%
100%
Attended through video conference
Leave of absence
Attended
(1) D. Sundaram was appointed as the Chairperson of the Committee effective April 21, 2020.
(2) Uri Levine was appointed as a member of the Committee effective April 21, 2020.
(3) Bobby Parikh was appointed as a member of the Committee effective July 16, 2020.
(4) Chitra Nayak was appointed as a member of the Committee effective March 25, 2021.
(5) D.N. Prahlad ceased to be the Chairperson of the Committee due to resignation effective April 20, 2020.
Risk management committee charter
Cybersecurity sub-committee
The risk management committee charter is available on the
Company’s website, at https://www.infosys.com/investors/
corporate-governance/documents/risk-management-
committee-charter.pdf.
The Committee constituted a cybersecurity sub-committee
in April 2019. As on March 31, 2021, the cybersecurity
sub-committee comprises three members – Michael Gibbs
as Chairperson, D. Sundaram and Uri Levine as members.
The objective of the sub-committee is to assess cybersecurity-
related risks and the preparedness of the Company to
mitigate and react to such risks. The sub-committee meets
periodically and recommends its findings, if any, to the risk
management committee.
128 | Corporate governance report
Infosys Annual Report 2020-21
Corporate governance report | 128
Infosys Annual Report 2020-21
Risk management committee report for the year ended March 31, 2021
Activities of the Committee during the year
Frequency
Reviewed and approved the Enterprise Risk Management Framework of the Company
Reviewed assessment and mitigation of risks arising due to COVID-19, covering areas of employee
engagement and safety, business continuity and resilience, cybersecurity, impact on growth, supply
chain, financial position, service delivery, productivity of new projects and immigration policies
Reviewed the governance of contractual liabilities
Reviewed risks and risk management frameworks related to client counterparty credit risk and
revenue concentration
Assessed top risks to the effective execution of the Company’s strategy; tracked trend lines of top
strategic, operational and compliance-related risks, the likelihood of their occurrence, potential impact
and progress of mitigation actions
Reviewed risks in market and client-specific demand environment
Reviewed risks and mitigation actions to strategic programs covering sales, cost optimization,
automation, employee engagement and retention
Reviewed the framework to assess potential risks in client and vendor contracts, approval
processes and policies
Reviewed service delivery risks in critical client engagements
Reviewed the Company’s information security and data privacy policies, related system controls, GDPR
and similar regulation requirements, risks and progress of mitigation actions
Submitted regular reports and recommendations to the Board with respect to risk management and
mitigation procedures
The Committee undertook an annual performance evaluation of its own effectiveness.
Reviewed and reassessed the adequacy of the Committee’s charter and recommended any proposed
changes to the Board for approval
Frequency
A
Annually
Q
Quarterly
P
Periodically
A
Q
P
Q
Q
P
P
P
P
Q
Q
A
P
Mumbai
April 07, 2021
Sd/-
D. Sundaram
Chairperson
129 | Corporate governance report
Infosys Annual Report 2020-21
Corporate governance report | 129
Infosys Annual Report 2020-21
Risk management report
Note: The risk-related information outlined in this section may not be exhaustive. The discussion may contain statements that are
forward-looking in nature. Our business is subject to uncertainties that could cause actual results to differ materially from those reflected
in the forward-looking statements. If any of the risks materializes, our business, financial conditions or prospects could be materially and
adversely affected. Our business, operating results, financial performance, or prospects could also be harmed by risks and uncertainties
not currently known to us or that we currently do not believe are material. Readers are advised to refer to the detailed discussion of risk
factors and related disclosures in our regulatory filings and exercise their own judgment in assessing risks associated with the Company.
Our Enterprise Risk Management (ERM) function enables
the achievement of the Company’s strategic objectives by
identifying, analyzing, assessing, mitigating, monitoring and
governing any risk or potential threat to these objectives. While
this is the key driver, our values, culture and commitment to
stakeholders – employees, customers, investors, regulatory
bodies, partners and the community around us – are the
foundation for our ERM framework.
The systematic and proactive identification of risks, and
mitigation thereof, enables our organization to boost
performance with effective and timely decision-making.
Strategic decisions are taken after careful consideration
of primary risks, secondary risks, consequential risks and
residual risks. The ERM function also enables effective
resource allocation through structured qualitative and
quantitative risk impact assessment and prioritization based
on our risk appetite.
Our ERM framework encompasses all of the Company’s
risks, such as strategic, operational, and legal & compliance
risks. Any of these categories can have internal or external
dimensions. Hence, appropriate risk indicators are used to
identify these risks proactively. We take cognizance of risks
faced by our key stakeholders and their cumulative impact
while framing our risk responses.
Strategy and strategy execution
Operational
Legal and compliance
Risks arising out of the choices we have made in defining
our strategy and the risks to the successful execution of
our strategy are covered in this category. For example, risks
inherent to our industry and our competitiveness are analyzed
and mitigated through strategic choices of target markets, our
market offerings, business model and talent base.
Risks affecting our policies, procedures, people and systems,
thereby impacting service delivery or operations, or
compromising our core values or business practices are covered
in this category. For example, risks such as inefficiencies
in internal processes, business activity disruptions due to
natural calamities, human conflicts, system failures and
cybersecurity attacks.
Risks arising out of threats posed to our financial,
organizational, or reputational standing resulting from
litigations, non-conformance with laws, regulatory or geo-
political developments, codes of conduct and contractual
compliances are covered in this category.
Integrated Enterprise Risk Management Framework
We have adopted an integrated ERM framework that is implemented across the organization by the risk management office.
Our ERM framework is developed by incorporating the best practices based on COSO and ISO 31000 and then tailored to
suit our unique business requirements.
130 | Corporate governance report
Infosys Annual Report 2020-21
Integrated Enterprise Risk Management Framework
STRATEGY
Strategy and
business objectives
PERFORMANCE EVALUATION AND RISK MANAGEMENT
GOVERNANCE
Risk-enabled decision-making
9-layer governance
Risk identification
Risk management
Board of Directors
Vision and
mission
Values and
culture
Strategic and
stakeholder
goals
Derived
goals
Legal and compliance
Type of risks
Operational
Strategy execution
Level 1 Risk
Level 2 Risk
Level 3 Risk
Level 4 Risk
Level 5 Risk
Granularity
n
o
i
t
c
n
u
f
g
n
i
l
b
a
n
e
s
s
e
n
i
s
u
B
y
r
e
v
i
l
e
D
l
s
e
a
S
Im pact groups
Risk
assessment
Treatment, mitigation and
control implementation
y
t
i
n
u
t
r
o
p
p
O
Secondary and consequential
risk assessment
Residual risk assessment
and decision-making
Auditing, monitoring
and reporting
Risk governance
and disclosures
Risk Management
Committee (RMC)
of the Board
Cybersecurity
Sub-Committee
Internal Board
of Directors
Risk councils
Office of
risk management
Sub-risk councils
Unit risk councils
Project and
account risk teams
Integrated lines of defense
iGRC platform
Intelligent risk analytics – Live Enterprise
Salient features of our Enterprise Risk Management program
Our ERM program adopts unique methods to identify risks, evaluate potential impact and promote risk awareness
across the organization.
Secondary, consequential
and residual risks
Secondary risks are threats that could impede
the mitigation of primary risks. Consequential
risks are the unintended consequences of
primary mitigation, and residual risks are those
risks that are left over after mitigation.
Aggregation and accumulation
Exposure for same risks are aggregated as it goes up
the hierarchy. This provides enterprise-wide view
to the leadership. Cumulated risk view is also
provided to understand total exposure arising out
of all risks at a unit level.
Process risk frameworks
Process-specific risk frameworks have been
developed for decision-making,
for example, frameworks for customer risk,
vendor risk, contractual liability, contractual
weighted-risk and credit risk.
Enterprise
Risk Management
program
Salient features
Intelligent risk analytics
– Live Enterprise
Internal and external risk and performance
indicators, loss incidents are used real-time to
identify, analyze and assess potential issues
that could negatively impact strategic goals.
RISC360 : iGRC
RISC360 is the Company’s Governance, Risk management
and Compliance (GRC) program that combines three
lines of defense under one umbrella. This enables
risk-based decision-making and auditing. The Company
has implemented a technology platform, iGRC, to
provide a consolidated view of risks to strategic goals.
Risk culture
Our risk culture encourages open and upward
communication. Coupled with our belief systems and
core values, this drives behavior, guides daily activities
and decision-making throughout the organization.
We encourage sharing of knowledge and best practices,
continuous process improvement and a strong
commitment to ethics and integrity.
Infosys Annual Report 2020-21
Corporate governance report | 131
Highlights of fiscal 2021
During fiscal 2021, we extended the adoption of the
integrated ERM framework across the organization,
strengthening our risk management program with a
technology platform and enhancing the risk culture. The
risk office played a key role, even as the Company navigated
the health and economic crisis, in identifying, assessing and
managing primary and secondary risks – so as to ensure the
smooth delivery of services to our customers, transparent
communication with all the stakeholders, fulfilling our social
responsibility while ensuring employee safety and health. Key
risks assessed included:
• Progress of execution of strategic programs, specifically
progress on localization in the US, increased offshoring
effort, large deal engagements, partnering with in-house
client organizations, the growth of digital services, demand
fulfilment and forecasting, performance of subsidiary
businesses
• Business environment, including trend line of key external
and internal indicators such as client concentration, client
technology spend, growth of top clients and bookings from
large engagements
• Client response to the pandemic and consequential impact
on our performance
• Business momentum relative to competition in key market
segments
• New country risk assessment before business penetration
• Client contract management process and contractual
liabilities
• Client creditworthiness and recovery of receivables
• Information security risks (cyberattacks and threat
intelligence) and data privacy related risks in GDPR
• Employee engagement and retention
• ESG, or Environmental Social and Governance-related
risks
• Operational risk areas, including client service, delivery
physical security, capital expenditures on infrastructure,
and business continuity management
• Monitoring of key developments in the regulatory and
geo-political environment, including Brexit in the UK,
and immigration and labor laws in continental Europe,
Australia and the US
• Availability of natural resources, such as water and power,
and its impact on our operations
• Impact of the COVID-19 pandemic on employee safety
and wellbeing, travel, business continuity and operations,
service delivery, cybersecurity for remote working, and
financial resilience
Details of additional risk factors have been provided under Management’s Discussion and Analysis section of this Annual Report.
Message from the Chief Risk Officer
“During the fiscal, our enterprise risk management processes were
instrumental in keeping the Company focused on the most important
priorities toward all our stakeholders. In addition to operational- and
compliance-related risks, there was significant assessment of strategic
risk areas in an evolving macro environment. “
Deepak Padaki
EVP and Group Head – Corporate
Strategy, and Chief Risk Officer
132 | Corporate governance report
Infosys Annual Report 2020-21
Stakeholders relationship committee
D. Sundaram
Chairperson
The stakeholders relationship committee (“the Committee”) comprised three independent directors and a whole-time director
as on March 31, 2021:
1. D. Sundaram, Chairperson
2. Bobby Parikh
3. U.B. Pravin Rao
4. Chitra Nayak
D. Sundaram was appointed as a member of the Committee effective April 21, 2020. Dr. Punita Kumar-Sinha, on completion
of her term, retired as independent director and ceased to be the Chairperson and member of the Committee effective January
13, 2021 and Bobby Parikh was appointed as the Chairperson of the Committee effective January 14, 2021.
Effective March 25, 2021, D. Sundaram was appointed as the Chairperson of the Committee and Chitra Nayak was appointed
as a member of the Committee. Further, Bobby Parikh ceased to be the Chairperson of the Committee and continues to be a
member of the Committee.
The Board has appointed A.G.S. Manikantha, Company Secretary, as the Compliance Officer, as required under the Listing
Regulations and the Nodal Officer to ensure compliance with the IEPF rules.
Purpose of the Committee
Committee governance
The purpose of the Committee is to assist the Board and
the Company to oversee the various aspects of interests of
stakeholders of the Company. The term ‘stakeholder’ includes
shareholders, debenture holders and other security holders.
Objectives and responsibilities of the Committee
The primary objectives of the Committee are to:
i. Consider and
resolve
the
security holders’
concerns or complaints
ii. Monitor
and
review
the
investor
service
standards of the Company
iii. Take steps to develop an understanding of the views of
shareholders about the Company, either through direct
interaction, analysts’ briefings or survey of shareholders
iv. Oversee and review the engagement and communication
plan with shareholders and ensure that the views and
concerns of the shareholders are highlighted to the
Board at the appropriate time and that steps are taken to
address such concerns
The Committee comprises three independent directors and a
whole-time director and performs the functions as required by:
• Section 178 of the Companies Act, 2013 and rules framed
thereunder
• Regulation 20 of the Listing Regulations and other
regulations and laws, as applicable
• NYSE guidelines, as applicable
• Stakeholders relationship committee charter
Stakeholders relationship committee charter
The stakeholders relationship committee charter is available
on the Company’s website, at https://www.infosys.com/
investors/corporate-governance/documents/stakeholders-
relationship-committee.pdf.
Infosys Annual Report 2020-21
Corporate governance report | 133
Environment, Social and Governance (ESG) Strategy
2020 marked an important milestone in Infosys’ sustainability
journey. It was the year that the Company became carbon-
neutral 30 years ahead of the Paris timeline and won the
prestigious UN Climate Action Award under the category:
Climate Neutral Now. Commending the efforts of the various
teams engaged in making this goal possible, the stakeholders
relationship committee of the Board urged the leadership to
continue their leadership journey and guided them to frame /
articulate an ESG vision and ambitions for the coming decade.
Grievance redressal mechanism
Investors can raise their
grievances with the
Company, RTA, RoC,
stock exchanges and SEBI.
The Company, with the
help of RTA, ensures to
resolve the complaints.
The stakeholders relationship committee met four
times during fiscal 2021.
Composition and attendance for fiscal 2021
The Company discloses
investor complaints
received and resolved
with the stock exchanges
on a quarterly basis.
The status of investor
grievance redressal is
updated to the Committee
and the Board periodically.
100%
Attendance
75%
Independence
4
Meetings
4
Members
Attendance details of the stakeholders relationship committee are as follows:
Stakeholders relationship committee meeting
Name of the directors
1
Apr 14, 2020
2
Jul 14, 2020
3
Oct 13, 2020
4
Jan 06, 2021
Committee meeting dates
D. Sundaram(1)
U.B. Pravin Rao
Bobby Parikh(2)
Chitra Nayak(3)
D.N. Prahlad(4)
Dr. Punita Kumar-Sinha(5)
% of attendance
100%
100%
100%
100%
Held
during
tenure
% of
attendance
3
4
0
0
1
4
3
4
0
0
1
4
100
100
100
100
Attended through video conference
Attended
(1) D. Sundaram was appointed as a member of the Committee effective April 21, 2020 and Chairperson effective March 25, 2021.
(2) Bobby Parikh was appointed as the Chairperson of the Committee effective January 14, 2021 and ceased to be the Chairperson effective March 25, 2021
and continues to be a member of the Committee.
(3) Chitra Nayak was appointed as a member of the Committee effective March 25, 2021.
(4) D.N. Prahlad ceased to be a member of the Committee due to resignation effective April 20, 2020.
(5) Dr. Punita Kumar-Sinha ceased to be the Chairperson and member of the Committee due to retirement effective January 13, 2021.
134 | Corporate governance report
Infosys Annual Report 2020-21
4. Stakeholder information
A. Shareholding as on March 31, 2021
B. Complaints received and resolved during the year ended
March 31, 2021
Shareholding mode
Details of complaints received and resolved
99.86%
0.14%
2019
99.86%
0.14%
2020
99.87%
0.13%
2021
7
0
5
,
2
7
0
5
,
2
9
2
7
,
1
9
2
7
,
1
0
1
0
,
2
0
1
0
,
2
Dematerialized
Physical
2019
2020
2021
*Complaints were related to dividend, Annual Report and others
Complaints
Received
Resolved
Stakeholders relationship committee report for the year ended March 31, 2021
Activities of the Committee during the year
Frequency
Monitored and reviewed the Company’s performance in dealing with stakeholder grievances
Reached out to select investors to engage with them and took their inputs on several matters
Reviewed various measures and initiatives taken for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants / annual reports / notices by the
shareholders of the Company
Reviewed the unclaimed dividend and equity shares transferred to the Investor Education and
Protection Fund (IEPF) pursuant to the IEPF Rules
Reviewed the annual audit report submitted by the independent auditors on the annual internal audit
conducted on the RTA operations as mandated by SEBI including the mechanism of investor grievance
redressal, compliances stipulated by SEBI and other matters concerning the functioning of the RTA
Periodically provided updates to the Board
Reviewed the measures taken for effective exercise of voting rights by shareholders
Reviewed the adherence to the service standards and security assessment adopted in respect of
various services being rendered by the Registrar & Share Transfer Agent
The Committee undertook an annual performance evaluation of its own effectiveness.
Discussed on Environment Social and Governance (ESG) Strategy
Frequency
A
Annually
Q
Quarterly
P
Periodically
A
P
P
P
A
P
A
P
A
A
Mumbai
April 06, 2021
Sd/-
D. Sundaram
Chairperson
Infosys Annual Report 2020-21
Corporate governance report | 135
Shareholder information
Corporate
Infosys was incorporated in Pune, in 1981, as Infosys
Consultants Private Limited, a private limited company under
the Companies Act, 1956. In 1983, the corporate headquarters
were relocated to Bengaluru. The name of the Company was
changed to Infosys Technologies Private Limited in April
1992 and to Infosys Technologies Limited in June 1992, when
the Company became a public limited company. We made an
initial public offering (IPO) in February 1993 and were listed
on stock exchanges in India in June 1993. Trading opened at
` 145 per share, compared to the IPO price of ` 95 per share.
In October 1994, we made a private placement of 5,50,000
shares at ` 450 each to Foreign Institutional Investors (FIIs),
Financial Institutions (FIs) and body corporates.
In March 1999, we issued 20,70,000 American Depositary
Shares (ADSs) (equivalent to 10,35,000 equity shares of par
value ` 10 each) at US$ 34 per ADS under the ADS Program,
and these ADSs were listed on the NASDAQ National Market.
Bonus issues and stock split
The share data mentioned before is unadjusted for stock split
and bonus shares. In July 2003, June 2005 and November
2006, we issued secondary-sponsored American Depositary
Receipts (ADRs) of US$ 294 million, US$ 1.1 billion and
US$ 1.6 billion, respectively.
During fiscal 2012, the name of the Company was changed
from Infosys Technologies Limited to Infosys Limited to mark
the transition from being a technology services provider to a
business transformation partner to our clients.
During fiscal 2013, we delisted our ADSs from NASDAQ,
and listed them in the New York Stock Exchange (NYSE),
Euronext London and Euronext Paris. During fiscal 2019,
the Company voluntarily delisted from Euronext London and
Paris due to low trading volume.
Infosys equity shares and ADSs are listed on NSE and BSE in
India and in NYSE, respectively, under the symbol “INFY”.
s
e
r
a
h
s
f
o
.
o
N
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
16,384
8,192
4,096
1
2
4
8
16
32
64
128
2,048
256
1,024
Prior to
1986
1986
1989
1991
1992
1994
1997
1999
2000
2005
2007
2015
2016
2019
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
1:1
1:1
1:1
1:1
1:1
1:1
1:1
Stock
Split
2:1
Bonus
Bonus
Bonus
Bonus
Bonus
3:1
1:1
1:1
1:1
1:1
Corporate action
Note: The above graph depicts the increase in the number of Infosys shares as a result of the Company’s bonus issues over the years and a stock split
in 2000 in the ratio of 2:1. For example, if the investor / shareholder held one share in 1986 prior to the bonus issue and continued to hold it,
he would have 16,384 shares today owing to the bonus share issues and stock split.
Dividend for fiscal 2021
Dividend cycle
Interim 2020-21
Dividend cycle
Final 2020-21
` 12.00
Record date Oct 26, 2020
Payout date
Nov 11, 2020
Total Dividend
` 27.00
Record date
Jun 01, 2021
Payout date
Jun 25, 2021
` 15.00
136 | Corporate governance report
Infosys Annual Report 2020-21
Unclaimed dividend
Section 124 of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (“the Rules”), as amended, mandates that companies transfer dividend that has
remained unclaimed / un-encashed for a period of seven years from the unpaid dividend account to the Investor Education
and Protection Fund (IEPF). Further, the Rules mandate that the shares on which dividend has not been claimed / encashed
for seven consecutive years or more be transferred to the IEPF.
The following table provides a list of years for which unclaimed dividends and their corresponding shares would become
eligible to be transferred to the IEPF on the dates mentioned below:
Year
Type of dividend
2013-2014
2014-2015
2014-2015
2015-2016
2015-2016
2016-2017
2016-2017
2017-2018
2017-2018
2018-2019
2018-2019
2018-2019
2019-2020
2019-2020
2020-2021
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final and Special
Interim
Special
Final
Interim
Final
Interim
(1) Not adjusted for bonus issue
(2) Amount unclaimed as on March 31, 2021
Dividend per
share (`)(1)
43.00
30.00
29.50
10.00
14.25
11.00
14.75
13.00
30.50
7.00
4.00
10.50
8.00
9.50
12.00
Date of declaration
Due date for transfer
Amount (`)(2)
June 14, 2014
October 10, 2014
June 22, 2015
October 12, 2015
June 18, 2016
October 14, 2016
June 24, 2017
October 24, 2017
June 23, 2018
October 16, 2018
January 11, 2019
June 22, 2019
October 11, 2019
June 27, 2020
October 14, 2020
July 19, 2021
November 14, 2021
July 23, 2022
November 17, 2022
July 17, 2023
November 19, 2023
July 25, 2024
November 24, 2024
July 24, 2025
November 14, 2025
February 10, 2026
July 21, 2026
November 11, 2026
July 28, 2027
November 17, 2027
1,22,21,675
85,26,330
1,55,87,210
1,13,44,190
1,67,75,827
1,46,99,608
2,30,43,438
2,45,73,354
5,20,40,651
2,20,88,788
1,34,84,448
3,12,32,859
2,57,06,561
2,99,24,729
3,46,95,270
In order to educate the shareholders and with an intent to protect their rights, the Company also sends regular reminders to
shareholders to claim their unclaimed dividends / shares before it is transferred to IEPF. Shareholders may note that both the
unclaimed dividends and corresponding shares transferred to IEPF, including all benefits accruing on such shares, if any, can
be claimed from IEPF following the procedure prescribed in the Rules. No claim shall lie in respect thereof with the Company.
Dividend remitted to IEPF during the last three years
Fiscal
2020-21
2020-21
2019-20
2019-20
2018-19
Dividend declared on
October 18, 2013
June 15, 2013
October 12, 2012
June 09, 2012
October 12, 2011
Type of dividend
Interim 2013-14
Final 2012-13
Interim 2012-13
Final 2011-12
Interim 2011-12
2018-19
Final 2010-11
June 11, 2011
Date of transfer to IEPF
November 24, 2020
July 20, 2020
November 19, 2019
July 19, 2019
November 16, 2018,
March 26, 2019(1)
July 16, 2018
Amount transferred to IEPF (`)
80,44,220
95,13,423
67,14,375
1,23,64,864
69,18,540
68,70,340
(1) The amounts transferred during the year to IEPF also include bank credits received pursuant to the cancellation of demand drafts beyond the validity
period. The banks have cancelled the issued demand draft in accordance with the SEBI circular dated April 20, 2018 on “Strengthening the Guidelines
and Raising Industry Standards for RTA, Issuer companies & Banker to an issue”. Apart from the above, the Company has also transferred ` 16,31,056
during fiscal 2019, pertaining to previous years.
Shares transferred to IEPF
During the year, the Company transferred 15,138 and
1,126 shares on August 21, 2020 and December 18, 2020,
respectively, due to the dividends being unclaimed for seven
consecutive years, in accordance with IEPF rules. During the
year, the Company received applications from shareholders for
claiming shares from IEPF. The IEPF has settled applications
pertaining to 25,756 shares to respective shareholders. IEPF
holds 2,74,995 shares as on March 31, 2021 on account of
transfer of shares under IEPF Rules. During the year, the
Company also transferred ` 59,99,134 as corporate benefits
(dividend) arising on shares already transferred to IEPF.
Infosys Annual Report 2020-21
Corporate governance report | 137
Schedule of events
40th Annual General Meeting
Date and time
June 19, 2021,
Saturday,
4:00 p.m. IST
Mode
Video conference and other audio-visual means
Participation through video-conferencing
https://agm.onwingspan.com/InfosysAGM
Webcast and transcripts
https://www.infosys.com/Investors/
E-voting dates
June 14 -18, 2021
Financial calendar
The Company’s financial year begins on April 1 and ends on March 31. Our tentative calendar for declaration of results for the
financial year 2021-22 are as given below:
Jun 30, 2021
Sep 30, 2021
Dec 31, 2021
Mar 31, 2022
Jun 16, 2021
to Jul 16, 2021
Sep 16, 2021
to Oct 15, 2021
Dec 16, 2021
to Jan 14, 2022
Mar 16, 2022
to Apr 15, 2022
Jul 14, 2021
Oct 13, 2021
Jan 12, 2022
Apr 13, 2022
Quarter ending
Trading window closure
Board meeting and earnings
release date
Investor awareness
We have provided a synopsis of the rights and responsibilities
of shareholders on our website, at https://www.infosys.com/
investors/shareholder-services/pages/faqs.aspx.
SEBI, effective April 01, 2019, barred physical transfer of shares
of listed companies and mandated transfers only through
demat. However, investors are not barred from holding shares
in physical form. We request shareholders whose shares are
in physical mode to dematerialize their shares. Shareholders
holding shares in dematerialized mode have been requested to
register their email address, bank account details and mobile
number with their depository participants. Those holding
shares in physical mode have been requested to furnish their
email address, bank account details and mobile number with
the Company’s RTA, at einward.ris@kfintech.com. Updating
all the relevant information will enable shareholders to receive
dividends and communications on time.
Investor conferences / events held in fiscal 2021
Infosys holds press meet and investor / analyst calls after every quarterly results announcement, which is accessible to all the
shareholders and general public. The details of these are sent to the stock exchanges, as well as updated on the website. In
addition, Infosys held an analyst meet virtually in Q3 FY21, which was broadcast live on our website. Infosys also participates
in various sell-side / broker-arranged investor conferences where the Management interacts with investors in 1x1 or group
meetings. The details of such participation are sent to the exchanges as well as updated on the website.
1
3
4
Q1
Conferences
Company events
1
11
12
Q2
2
9
11
Q3
1
7
8
Q4
138 | Corporate governance report
Infosys Annual Report 2020-21
Investor grievances and investor contacts
We have a Board-level stakeholders relationship committee
to examine and redress complaints by shareholders and
investors. The status of complaints is reported to the entire
Board. The stakeholders relationship committee meets as
often as required to resolve shareholder grievances.
We attended to most of the investors’ grievances and postal /
electronic communications within a period of seven days from
the date of receipt of such grievances. The exceptions have
been for cases constrained by disputes or legal impediments.
Shareholders may note that the share transfers, dividend
payments and all other investor-related activities are attended
to and processed at the office of the Company’s RTA.
For any grievances / complaints, shareholders may contact
the RTA, KFin Technologies Private Limited at einward.ris@
kfintech.com. For any escalations, shareholders may write
to the Company at investors@infosys.com and for queries
on dividend tax, write to us on dividend.tax@infosys.com.
The addresses and contact details for investor queries, RTA,
depositary banks, depositories for equity shares in India and
stock exchanges are provided at the end of the Annual Report.
Registered office and global locations
The address of our registered office is Electronics City, Hosur
Road, Bengaluru 560100, Karnataka, India.
Our operations are spread across 234 locations in more than
50 countries. We do not have any manufacturing plants, but
have development centers and offices in India and overseas.
Visit https://www.infosys.com/investors/reports-filings/
documents/global-presence2021.pdf for details related to
our global locations.
Legal proceedings
There are certain pending cases related to disputes over title
to company shares, in which Infosys has been made party
only as a proforma defendant / respondent. However, these
cases are not material in nature.
Commodity price risk, foreign exchange risk and
hedging activities
The Company had no exposure to commodity and commodity
risks in fiscal 2021. For details of foreign exchange risk
and hedging activities, please refer to the Management’s
discussion and analysis.
Share capital
425,89,92,566
Holding as on March 31, 2020
16,68,280
ESOP Allotment
Holding as on March 31, 2021
426,06,60,846
Category-wise shareholding as on March 31, 2021
32.67%
139,19,40,912
Foreign Portfolio Investors
Total number of shares
426,06,60,846
4.34%
18,53,66,346
Others
9.52%
40,54,26,435
Insurance Companies
17.19%
73,24,89,890
American Depositary Receipts
13.24%
56,40,57,211
Mutual Funds
12.95%
55,16,82,338
Promoters & Promoter Group
10.09%
42,96,97,714
Resident Individuals (Public)
Infosys Annual Report 2020-21
Corporate governance report | 139
Shareholders holding more than 1% of the shares as on March 31, 2021
The details of shareholders (non-promoters and non-ADR holders) holding more than 1% (PAN-based) of the equity as on
March 31, 2021 are as follows:
2.67%
No. of shares
5.87%
25,00,63,497
11,39,18,469
Name of the shareholder
% (percentage of holding)
Life Insurance Corporation of India
SBI Mutual Fund
ICICI Prudential Mutual Fund
Government of Singapore
HDFC Mutual Fund
ICICI Prudential Life Insurance Company Limited
NPS Trust
Vanguard Emerging Markets Stock Index Fund,
A Series of Vanguard International Equity Index Fund
Government Pension Fund Global
UTI Mutual Fund
Vanguard Total International Stock Index Fund
1.54%
1.47%
1.38%
1.23%
1.20%
1.16%
1.16%
1.14%
1.06%
Distribution of shareholding as on March 31, 2021
No. of shares held
No. of holders
% to holders
% to equity
1-1
80,251
2-10
3,98,462
11-50
4,65,898
51-100
2,03,720
101-200
1,44,251
201-500
1,00,836
501-1,000
1,001-5,000
5,001-10,000
10,001 and above
38,839
28,148
4,527
7,380
Total
14,72,312
100.00%
5.45%
27.06%
31.64%
13.84%
9.80%
6.85%
2.64%
1.91%
0.31%
0.50%
0.00%
0.06%
0.32%
0.38%
0.52%
0.77%
0.66%
1.37%
0.75%
6,55,34,808
6,27,18,130
5,87,41,622
5,22,42,417
5,11,01,983
4,94,59,292
4,92,73,343
4,87,09,519
4,50,88,584
No. of shares
80,251
24,47,171
1,34,55,847
1,61,99,951
2,22,00,522
3,28,06,929
2,81,68,405
5,85,66,792
3,19,54,820
95.17%
405,47,80,158
100.00%
426,06,60,846
Dematerialization of shares and liquidity
% to total equity
99.87%
0.13%
Number of shareholders (1)
14,72,312
Number of shares
426,06,60,846
14,71,992
320
425,51,32,360
55,28,486
Demat mode
Physical mode
(1) The number of shareholders based on demat account is 14,72,312 and based on PAN is 14,09,782 as end of March 31, 2021. There will be a difference in the number of
shareholders based on demat and PAN, since shareholders can have multiple demat accounts under a single PAN.
Listing on stock exchanges
Codes
India
Exchange
Reuters
Bloomberg
NSE
INFY
INFY.NS
INFO IS
BSE
INFY
INFY.BO
INFO IB
Global
NYSE
INFY
INFY.K
INFY US
The listing fees for fiscal 2021 have been paid for all of the
above stock exchanges in India and overseas.
ISIN Code for ADS: US4567881085
ISIN Code for Indian equity shares: INE009A01021
140 | Corporate governance report
Infosys Annual Report 2020-21
Stock market data relating to shares listed in India and NYSE
Our market capitalization is included in the computation of the S&P BSE Sensex (Sensex), the NIFTY 50 Index, NYSE
Composite Index and Dow Jones Sustainability Indices (DJSI), among others.
Stock market data – exchanges in India
The monthly high and low quotations, as well as the volume of shares traded at the BSE, the NSE, and NYSE for the current
year are provided as follows:
2020-21
Months
April
May
June
July
August
September
October
November
December
January
February
March
Total
High (`)
719.80
709.90
750.90
986.00
974.55
1,037.10
1,185.00
1,154.90
1,265.00
1,392.70
1,331.85
1,406.25
BSE
Low (`) Volume A (No.) High (`)
720.00
582.35
710.00
647.00
751.60
675.05
986.45
730.00
974.40
915.75
1,037.00
912.60
1,186.00
1,011.90
1,154.90
1,051.00
1,258.85
1,105.55
1,392.80
1,231.15
1,332.00
1,230.00
1,406.00
1,259.70
80,59,323
58,80,049
1,00,75,342
1,63,97,506
68,11,112
1,05,95,786
1,35,08,144
1,06,09,941
1,15,29,589
1,64,50,656
97,34,554
76,02,453
12,72,54,455
NSE
Low (`) Volume B (No.)
20,35,41,203
582.15
18,06,08,261
646.70
24,08,15,374
675.50
39,71,06,164
729.75
15,50,93,291
914.60
23,24,00,643
912.10
28,49,95,489
1,011.75
20,85,43,153
1,051.10
20,57,93,830
1,105.05
20,67,14,641
1,231.00
13,58,80,762
1,241.00
17,07,97,260
1,259.00
262,22,90,071
Volume
(A+B) (No.)
21,16,00,526
18,64,88,310
25,08,90,716
41,35,03,670
16,19,04,403
24,29,96,429
29,85,03,633
21,91,53,094
21,73,23,419
22,31,65,297
14,56,15,316
17,83,99,713
274,95,44,526
The volume traded / outstanding shares (%) in the last three fiscals is as follows:
Fiscal
2020-21
2019-20
2018-19
Volume (BSE)
4
4
4
Volume (NSE)
74
66
57
Volume (BSE +NSE)
78
70
61
Note: The number of shares outstanding was 352,81,70,956 as of March 31, 2021. ADSs have been excluded for the purpose of this calculation.
Stock market data – NYSE
2020-21
Months
April
May
June
July
August
September
October
November
December
January
February
March
Total
High ($)
Low ($)
High (`)
Low (`)
Volume (No.)
9.51
9.41
9.72
12.99
13.03
13.94
16.62
15.60
17.03
19.07
18.16
19.37
7.46
8.37
8.84
9.53
12.52
12.20
13.57
14.17
15.17
16.88
16.94
17.38
713.25
713.37
734.05
971.65
973.08
1028.77
1219.74
1153.62
1243.87
1394.78
1321.32
1402.97
565.62
632.52
669.72
719.61
937.75
895.48
998.21
1054.25
1119.55
1231.73
1237.81
1274.13
23,71,40,661
19,81,54,514
22,20,78,708
29,79,99,960
15,91,45,540
17,31,53,376
28,20,84,986
14,72,08,043
16,92,86,455
18,65,46,081
14,45,51,810
21,48,64,988
243,22,15,122
Note: 1 ADS = 1 equity share. The US dollar has been converted into the Indian rupee at the daily rates. The number of ADSs outstanding as on
March 31, 2021 was 73,24,89,890. The percentage of volume traded for the year at NYSE, to the total float was 332%.
Infosys Annual Report 2020-21
Corporate governance report | 141
ADS premium compared to price quoted on NSE
(`)
1,400
1,200
1,000
800
600
400
200
-
ADS(`)
Equity(`)
Premium/
(Discount)
(%)
5.0
3.0
1.0
-1.0
-3.0
April
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
646.52
679.64
703.44
864.81
946.69
970.90
1,097.34
1,107.96
1,178.97
1,312.86
1,282.48
1,353.98
644.86
677.82
710.80
860.25
950.87
972.64
1,101.45
1,110.71
1,184.40
1,316.97
1,283.76
1,349.14
0.3%
0.3%
-1.0%
0.5%
-0.4%
-0.2%
-0.4%
-0.2%
-0.5%
-0.3%
-0.1%
0.4%
Note: Represents monthly average of closing prices of our ADSs listed on NYSE compared to monthly average of closing prices of our equity shares
listed on NSE.
Outstanding ADSs
Our ADSs, as evidenced by ADRs, are traded in the US on the NYSE under the ticker symbol ‘INFY’. The currency of trade
of ADS in the US is USD. Each ADS is represented by one equity share. The ADRs evidencing ADSs began trading on the
NYSE, New York, from December 12, 2012. As on March 31, 2021, there were 1,07,876 record holders of ADRs evidencing
73,24,89,890 ADSs (1 ADS = 1 equity share).
Infosys share price versus the NSE Nifty 50 index
260
220
180
140
100
60
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Note: Infosys share price and NSE Nifty 50 index values on April 1, 2020 have been baselined to 100.
Infosys
NIFTY 50
142 | Corporate governance report
Infosys Annual Report 2020-21
Infosys share price versus the S&P BSE Sensex (Sensex)
260
220
180
140
100
60
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Note: Infosys share price and Sensex values on April 1, 2020 have been baselined to 100.
Infosys
BSE Sensex
Credit ratings
During the year, Moody’s changed the rating on Infosys to
Baa1 from A3 following the downgrade of India’s sovereign
rating to Baa3 from Baa2. There has been no change in
credit ratings from Standard & Poor’s, Dun & Bradstreet and
CRISIL during the year.
Rating agency
Moody’s
Standard & Poor’s
Dun & Bradstreet
CRISIL
Shareholders
Rating
Baa1
A-
5A1
AAA
Outlook
Negative
Stable
Condition: Strong
Stable
Communication to the shareholders
The Company ensures that the following filings and reports
are available on its website:
• The quarterly report, along with additional information
and official news releases, are posted on our website,
at https://www.infosys.com/investors/reports-filings/
The reports contain select financial data extracted
from the audited condensed consolidated financial
statements under the IFRS (INR), and audited condensed
consolidated financial statements under the IFRS (USD).
In light of difficulties posed by COVID-19 pandemic,
SEBI vide various circulars relaxed the requirement of
publishing financial results in the newspapers. However,
the Company ensured publishing the financial results
for the benefit of the stakeholders. The quarterly /
annual results are generally published in at least one
English language national daily newspaper circulating in
the whole or substantially the whole of India (Business
Standard) and in one regional daily newspaper circulating
in Karnataka (Prajavani).
• Quarterly and annual financial statements, standalone
and consolidated, along with segmental information, are
also posted on our website, at https://www.infosys.com/
investors/reports-filings/.
•
•
Earnings calls with analysts and investors are broadcast
live on our website and their transcripts are also
published on the website. The proceedings of the AGM
are webcast live for shareholders across the world. The
AGM presentations, transcripts and video archives are
available on our website, at https://www.infosys.com/
investors/reports-filings/.
Form 20-F, filed annually with the SEC, also contains
detailed disclosures and is made available on our
website, at https://www.infosys.com/investors/reports-
filings/annual-report.html.
• The shareholders can also access the details of
corporate governance policies, Board committee
charters, Memorandum and Articles of Association,
financial information, shareholding information, details
of withheld taxes on dividend, details of unclaimed
dividends and shares transferred / liable to transfer to
IEPF, etc. on the Company’s website.
• Other information, such as press releases, stock exchange
disclosures and presentations made to investors and
analysts, etc., is regularly updated on the Company’s
website. The shareholders can also visit www.sec.gov
where the investors can view statutory filings of the
Company with the SEC.
Details of non-compliance
No penalty has been imposed by any stock exchange, SEBI or
SEC, nor has there been any instance of non-compliance with
any legal requirements, or on matters relating to the capital
market over the last three years.
Infosys Annual Report 2020-21
Corporate governance report | 143
Regulatory orders
There were no regulatory orders pertaining to the
Company for fiscal 2021.
CEO and CFO certification
As required by the Listing Regulations, the CEO and CFO
certification is provided in this Annual Report.
Code of conduct
In compliance with the Listing Regulations and the Companies
Act, 2013, the Company has adopted the Code of Conduct and
Ethics (“the Code”). The Code is applicable to the members
of the Board, the executive officers and all employees of the
Company and its subsidiaries. The Code is available on our
website, at https://www.infosys.com/investors/corporate-
governance/documents/codeofconduct.pdf.
All members of the Board, the executive officers and senior
officers have affirmed compliance to the Code as on March
31, 2021. A declaration to this effect, signed by the CEO &
MD and the CFO, forms part of the CEO and CFO certification.
Establishment of vigil / whistleblower mechanism
The Company has established a mechanism for directors
and employees to report concerns about unethical behavior,
actual or suspected fraud, or violation of the Code. It also
provides for adequate safeguards against the victimization of
employees who avail the mechanism, and allows direct access
to the chairperson of the audit committee in exceptional
cases. During the year, no person was denied access to
the audit committee.
Whistleblower Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/whistleblower-policy.pdf.
Complaints pertaining to sexual harassment
The details of complaints filed, disposed of and pending during
the financial year pertaining to sexual harassment are provided
in the Business responsibility report of this Annual Report.
Prevention of insider trading
During the year, the Company has amended the Code of
Conduct for prohibition of insider trading and Code on
fair disclosure and investor relations effective January 13,
2021 in line with the SEBI (Prohibition of Insider Trading)
(Amendment) Regulations, 2020. The policy and procedures
for inquiry in case of leak of Unpublished Price Sensitive
Information (UPSI) or suspected leak of UPSI is forming part
of the Code of Conduct for prohibition of insider trading.
General body meetings / postal ballots
The details of the special resolutions passed during the last three Annual and / or Extraordinary General Meetings are as follows:
Year ended
March 31,
2020
Date and
time
39th AGM:
June 27,
2020 at 4
p.m. IST
Venue
Special resolution passed
None
Held through
Video
conferencing /
other Audio
visual means
March 31,
2019
38th AGM:
June 22,
2019 at 3
p.m. IST
Christ University
Auditorium,
Hosur Road,
Bengaluru, India
1. Approval of the Infosys Expanded Stock
Ownership Program – 2019 (“the 2019 Plan”)
and grant of stock incentives to the eligible
employees of the Company under the 2019 Plan
2. Approval of the Infosys Expanded Stock
Ownership Program – 2019 (“the 2019 Plan”)
and grant of stock incentives to the eligible
employees of the Company’s subsidiaries under
the 2019 Plan
3. Approval for secondary acquisition of shares of
the Company by the Infosys Expanded Stock
Ownership Trust for the implementation of the
Infosys Expanded Stock Ownership Program –
2019 (“the 2019 Plan”)
Web link for webcast /
transcripts
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2020/agm-
2020-transcript.pdf
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2019.html
March 31,
2018
37th AGM:
June 23,
2018 at 3
p.m. IST
Christ University
Auditorium,
Hosur Road,
Bengaluru, India
None
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2018.html
144 | Corporate governance report
Infosys Annual Report 2020-21
Participation and voting at 40th AGM
Management review and responsibility
Pursuant to the General Circular numbers 20/2020, 14/2020,
17/2020, 39/2020 and 02/2021 issued by the Ministry of
Corporate Affairs and Circular number SEBI/HO/CFD/CMD1/
CIR/P/2020/79 and SEBI/HO/CFD/CMD2/CIR/P/2021/11
issued by SEBI, the 40th AGM of the Company will be held
through video-conferencing and other audio visual means,
the detailed instructions for participation and voting at the
meeting is available in the notice of the 40th AGM.
Postal ballot
During the year, the Company did not pass any special resolution
through postal ballot. The details of the previous postal
ballots are available on the website, at https://www.infosys.
com/investors/shareholder-services/postal-ballot.html.
Compliance with discretionary requirements
The Company has also ensured the implementation of
non-mandatory items such as:
• Separate posts of Chairman, and CEO & MD, with
the provision for reimbursement of expenses in the
performance of official duties
• The Company has provided a separate office within the
Company premises for the Chairman.
• Unmodified audit opinions / reporting
• Internal auditor reporting directly to the audit committee
• The Company has appointed one of its independent
directors voluntarily on the Board of its non-material
subsidiary.
Board interaction with clients, employees,
institutional investors, governments and the media
The Chairman, the CEO & MD, the COO, the CFO, the
Presidents and the Deputy CFO represent the Company
in interactions with investors, the media and various
governments. In addition, the CEO & MD, the COO, the
CFO and the Presidents manage interactions with clients
and employees and the investor relations team represents the
Company in interactions with investors. The other authorized
media spokespersons for business-specific matters include
the functional heads and identified subject matter experts.
Certification from Company Secretary in Practice
Parameshwar G. Hegde of Hegde & Hegde, Practicing
Company Secretaries, has issued a certificate as required
under the Listing Regulations, confirming that none of the
directors on the Board of the Company has been debarred or
disqualified from being appointed or continuing as director
of companies by the SEBI / Ministry of Corporate Affairs or
any such statutory authority. The certificate is enclosed with
this section as Annexure A.
Auditors’ certificate on corporate governance
The auditor’s certificate on corporate governance is provided
as Annexure 4 to the Board’s report.
Infosys Annual Report 2020-21
Corporate governance report | 145
Annexure A: Certificate from Company Secretary in Practice
C E R T I F I C A T E
(Pursuant to clause 10 of Part C of Schedule V of LODR)
In pursuance of sub-clause (i) of clause 10 of Part C of Schedule V of The Securities and Exchange Board of India
(SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR); in respect of Infosys Limited
(CIN:L85110KA1981PLC013115) I hereby certify that:
On the basis of the written representation / declaration received from the directors and taken on record by the Board of Directors,
as on March 31, 2021, none of the directors on the board of the Company has been debarred or disqualified from being
appointed or continuing as director of companies by the SEBI / Ministry of Corporate Affairs or any such statutory authority.
Place: Bengaluru
Date: April 14, 2021
Sd/-
P.G. Hegde
Hegde & Hegde
Company Secretaries
FCS:1325 / C.P.No: 640
UDIN: F001325C000031267
146 | Corporate governance report
Infosys Annual Report 2020-21
CEO and CFO certification
The Board of Directors
Infosys Limited, Bengaluru
Dear members of the Board,
We, Salil Parekh, Chief Executive Officer and Managing Director, and Nilanjan Roy, Chief Financial Officer of Infosys Limited,
to the best of our knowledge and belief, certify that:
1. We have reviewed the Balance Sheet as at March 31, 2021, Statement of Profit and Loss, the Statement of Changes in Equity
and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other
explanatory information of the Company, and the Board’s report for the year ended March 31, 2021.
2. These statements do not contain any materially untrue statement or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report.
3. The financial statements, and other financial information included in this report, present in all material respects a true and
fair view of the Company’s affairs, the financial condition, results of operations and cash flows of the Company as at, and
for, the periods presented in this report, and are in compliance with the existing accounting standards and / or applicable
laws and regulations.
4. There are no transactions entered into by the Company during the year that are fraudulent, illegal or violate the Company’s
Code of Conduct and Ethics, except as disclosed to the Company’s auditors and the Company’s audit committee of
the Board of Directors.
5. We are responsible for establishing and maintaining disclosure controls and procedures and internal controls over financial
reporting for the Company, and we have:
a. Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under
our supervision to ensure that material information relating to the Company, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this report is being prepared.
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with Indian Accounting Standards (Ind AS).
c. Evaluated the effectiveness of the Company’s disclosure, controls and procedures.
d. Disclosed in this report, changes, if any, in the Company’s internal control over financial reporting that occurred during
the Company’s most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.
6. We have disclosed, based on our most recent evaluation of the Company’s internal control over financial reporting, wherever
applicable, to the Company’s auditors and the audit committee of the Company’s Board (and persons performing the
equivalent functions):
a. Any deficiencies in the design or operation of internal controls, that could adversely affect the Company’s ability to record,
process, summarize and report financial data, and have confirmed that there have been no material weaknesses in internal
controls over financial reporting including any corrective actions with regard to deficiencies.
b. Any significant changes in internal controls during the year covered by this report.
c. All significant changes in accounting policies during the year, if any, and the same have been disclosed in the notes to the
financial statements.
d. Any instances of significant fraud of which we are aware, that involve the Management or other employees who have a
significant role in the Company’s internal control system.
7. We affirm that we have not denied any personnel access to the audit committee of the Company (in respect of matters
involving alleged misconduct) and we have provided protection to whistleblowers from unfair termination and other unfair
or prejudicial employment practices.
8. We further declare that all Board members and senior management personnel have affirmed compliance with the Code of
Conduct and Ethics for the year covered by this report.
Bengaluru
April 14, 2021
Infosys Annual Report 2020-21
Sd/-
Salil Parekh
Chief Executive Officer and Managing Director
Sd/-
Nilanjan Roy
Chief Financial Officer
CEO and CFO certification | 147
Standalone financial statements under Indian Accounting
Standards (Ind AS) for the year ended March 31, 2021
Index
A
Independent Auditor’s Report ....................................................................................................................................149
B Balance Sheet ...................................................................................................................................................................157
C
Statement of Profit and Loss .......................................................................................................................................159
D Statement of Changes in Equity .................................................................................................................................161
E
Statement of Cash Flows ..............................................................................................................................................164
F Overview and notes to the financial statements ..................................................................................................166
1. Overview
1.1 Company overview ............................................................................................................................................166
1.2 Basis of preparation of financial statements ..............................................................................................166
1.3 Use of estimates and judgments ....................................................................................................................166
1.4 Critical accounting estimates and judgments ............................................................................................166
2. Notes to financial statements
2.1 Property, plant and equipment .......................................................................................................................167
2.2 Goodwill and other intangible assets............................................................................................................170
2.3 Leases .....................................................................................................................................................................171
2.4
Investments ...........................................................................................................................................................173
2.5 Loans ........................................................................................................................................................................179
2.6 Other financial assets .........................................................................................................................................179
2.7 Trade receivables ................................................................................................................................................180
2.8 Cash and cash equivalents ................................................................................................................................180
2.9 Other assets ..........................................................................................................................................................180
2.10 Financial instruments .........................................................................................................................................180
2.11 Equity .......................................................................................................................................................................187
2.12 Other financial liabilities ....................................................................................................................................193
2.13 Trade payables ......................................................................................................................................................193
2.14 Other liabilities .....................................................................................................................................................193
2.15 Provisions ...............................................................................................................................................................193
2.16 Income taxes .........................................................................................................................................................194
2.17 Revenue from operations ..................................................................................................................................196
2.18 Other income, net ................................................................................................................................................199
2.19 Expenses .................................................................................................................................................................200
2.20 Employee benefits ...............................................................................................................................................200
2.21 Reconciliation of basic and diluted shares used in computing earning per share .........................203
2.22 Contingent liabilities and commitments......................................................................................................204
2.23 Related party transactions ................................................................................................................................204
2.24 Corporate social responsibility ........................................................................................................................210
2.25 Segment reporting ..............................................................................................................................................210
2.26 Function-wise classification of Statement of Profit and Loss ................................................................211
148 | Standalone financial statements
Infosys Annual Report 2020-21
Independent Auditor’s Report
To the members of Infosys Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of INFOSYS LIMITED (the “Company”), which comprise the
Balance Sheet as at March 31, 2021, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement
of Changes in Equity and the Statement of Cash Flows for the year ended on that date and a summary of significant accounting
policies and other explanatory information (hereinafter referred to as the “standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2021 and its profit, total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (“SA”s)
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the
ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and
the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for
our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our report.
Infosys Annual Report 2020-21
Standalone financial statements | 149
Sr. No. Key Audit Matter
1
Revenue recognition
The Company’s contracts with customers include contracts with multiple products and services. The Company
derives revenues from IT services comprising software development and related services, maintenance, consulting
and package implementation, licensing of software products and platforms across the Company’s core and digital
offerings and business process management services. The Company assesses the services promised in a contract
and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to
determine the deliverables and the ability of the customer to benefit independently from such deliverables involves
significant judgement.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party
vendor equipment or software. In these types of arrangements, revenue from sales of third-party vendor products
or services is recorded net of costs when the Company is acting as an agent between the customer and the vendor,
and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates whether
it controls the products or service before it is transferred to the customer. The Company considers whether it has the
primary obligation to fulfil the contract, inventory risk, pricing discretion and other factors to determine whether it
controls the products or service and therefore, is acting as a principal or an agent.
Fixed price maintenance revenue is recognized ratably either on (1) a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from the services rendered to the customer and the Company’s costs to fulfil the contract
is not even through the period of contract because the services are generally discrete in nature and not repetitive.
The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the
contract and nature of the deliverables.
As certain contracts with customers involve management’s judgment in (1) identifying distinct performance
obligations, (2) determining whether the Company is acting as a principal or an agent and (3) whether fixed price
maintenance revenue is recognized on a straight-line basis or using the percentage of completion method, revenue
recognition from these judgments were identified as a key audit matter and required a higher extent of audit effort.
Refer Notes 1.4 and 2.17 to the Standalone financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to the (1) identification of distinct performance obligations, (2) determination of
whether the Company is acting as a principal or agent and (3) whether fixed price maintenance revenue is recognized
on a straight-line basis or using the percentage of completion method included the following, among others:
• We tested the effectiveness of controls relating to the (a) identification of distinct performance obligations,
(b) determination of whether the Company is acting as a principal or an agent and (c) determination of whether
fixed price maintenance revenue for certain contracts is recognized on a straight-line basis or using the percentage
of completion method.
• We selected a sample of contracts with customers and performed the following procedures:
– Obtained and read contract documents for each selection, including master service agreements, and other
documents that were part of the agreement.
– Identified significant terms and deliverables in the contract to assess management’s conclusions regarding the
(i) identification of distinct performance obligations (ii) whether the Company is acting as a principal or an agent
and (iii) whether fixed price maintenance revenue is recognized on a straight-line basis or using the percentage
of completion method.
150 | Standalone financial statements
Infosys Annual Report 2020-21
Sr. No. Key Audit Matter
2
Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from services rendered to the customer and the Company’s costs to fulfil the contract
is not even through the period of contract because the services are generally discrete in nature and not repetitive.
Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time
is recognized using the percentage-of-completion method.
Use of the percentage-of-completion method requires the Company to determine the actual efforts or costs expended
to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been
used to measure progress towards completion as there is a direct relationship between input and productivity.
The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the
contract to reflect any changes based on the latest available information. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which such losses become probable based on the estimated
efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage
of completion method as a key audit matter as the estimation of total efforts or costs involves significant judgement
and is assessed throughout the period of the contract to reflect any changes based on the latest available information.
This estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs
incurred to-date and estimates of efforts or costs required to complete the remaining contract performance obligations
over the term of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort
to evaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.4 and 2.17 to the Standalone financial statements
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts
included the following, among others:
• We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application
controls pertaining to time recording, allocation and budgeting systems which prevents unauthorised changes to
recording of efforts incurred.
• We selected a sample of fixed price contracts with customers measured the using percentage-of-completion
method and performed the following:
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Company’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining
costs or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign
off from customers to identify possible delays in achieving milestones, which require changes in estimated costs or
efforts to complete the remaining performance obligations.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business
Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the standalone financial
statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Infosys Annual Report 2020-21
Standalone financial statements | 151
Management’s Responsibilities for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance,
including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe
152 | Standalone financial statements
Infosys Annual Report 2020-21
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
(b)
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes
in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d)
In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under
Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director
in terms of Section 164(2) of the Act
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over
financial reporting.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to
the explanations given to us:
i.
ii.
The Company has disclosed the impact of pending litigations on its financial position in its standalone
financial statements.
The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs
3 and 4 of the Order.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 21039826AAAACR7067
Annexure “A” to the Independent Auditor’s Report
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of Infosys Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of INFOSYS LIMITED (the “Company”) as of March 31,
2021 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Infosys Annual Report 2020-21
Standalone financial statements | 153
Management’s Responsibility for Internal Financial Controls
The Management of the Company is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (the “ICAI”). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on
the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations of management and directors
of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2021, based on the criteria for internal financial control over
financial reporting established by the Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 21039826AAAACR7067
154 | Standalone financial statements
Infosys Annual Report 2020-21
Annexure ‘B’ to the Independent Auditor’s Report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of Infosys Limited of even date)
i.
ii.
iii.
iv.
v.
vi.
In respect of the Company’s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our
opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program,
certain fixed assets were physically verified by the management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination
of the conveyance deeds / registered sale deed provided to us, we report that, the title deeds, comprising all
the immovable properties of land and buildings which are freehold, are held in the name of the Company as at
the balance sheet date.
The Company is in the business of providing software services and does not have any physical inventories. Accordingly,
reporting under clause 3 (ii) of the Order is not applicable to the Company.
According to the information and explanations given to us, the Company has granted unsecured loans to four bodies
corporate, covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to
the Company’s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of
principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
In our opinion and according to the information and explanations given to us, the Company has complied with the
provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees
and securities, as applicable. There were no loans granted during the year under Section 185 of the Act.
The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31,
2021 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
The maintenance of cost records has not been specified by the Central Government under section 148(1) of the
Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under clause 3(vi) of the
order is not applicable to the Company.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund,
Employees’ State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory
dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax,
Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2021 for
a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty, Value Added Tax and Goods and Service Tax
which have not been deposited as at March 31, 2021 on account of dispute are given below:
Infosys Annual Report 2020-21
Standalone financial statements | 155
Nature of the
statute
The Income Tax
Act, 1961
Finance Act, 1994
Central Excise Act,
1944
Forum where Dispute
is Pending
Nature of
dues
Income Tax Appellate Tribunal(1)
Income Tax Income Tax Authority
upto Commissioner’s
Level
Service Tax Appellate Tribunal(2)
Excise Duty Supreme Court(2)
Period to which the Amount
Relates
A.Y. 2012-13 and A.Y. 2016-17
A.Y. 2008-09 to A.Y. 2011-12; A.Y.
2013-14 to A.Y. 2016-17 and A.Y.
2018-19 to A.Y. 2021-22
F.Y. 2004-05 to F.Y.2014-15
F.Y. 2005-06 to F.Y. 2015-16
Amount `
Crores
1,030
1,053
60
Customs Act, 1962 Custom
Specified Officer of SEZ F.Y. 2008 -09 to F.Y. 2011-12
Excise Duty Appellate Tribunal
F.Y. 2015-16
Sales Tax Act and
VAT Laws
Duty and
Interest
Sales Tax
and interest
Sales Tax
and interest
Central sales tax
act, 1956
Central
sales tax
Goods and Service
tax Act, 2017
Goods and
Service tax
High Court
F.Y. 2007-08
Appellate Authority
upto Commissioner’s
Level(2)
Appellate Authority
upto Commissioner’s
Level
Appellate Authority
upto Commissioner’s
Level
F.Y. 2006-07 to F.Y. 2010-11 and
F.Y. 2014-15 to F.Y. 2016-17
F.Y. 2016-17
F.Y. 2019-20
68
–*
5
–*
21
–*
6
(1) In respect of A.Y. 2012-13, stay order has been granted against the amount of ` 1,029 crore disputed and not been deposited.
(2) Stay order has been granted.
* Less than ` 1 crore.
viii. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not
issued any debentures. Hence reporting under clause 3 (viii) of the Order is not applicable to the Company.
ix.
x.
xi.
The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company
or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
In our opinion and according to the information and explanations given to us, the Company has paid/provided
managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii.
In our opinion and according to the information and explanations given to us, the Company is in compliance with
Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial statements as required by
the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv.
In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of
section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 21039826AAAACR7067
156 | Standalone financial statements
Infosys Annual Report 2020-21
Balance Sheet
Particulars
Assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Capital work-in-progress
Goodwill
Other intangible assets
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets (net)
Income tax assets (net)
Other non-current assets
Total non-current assets
Current assets
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Loans
Other financial assets
Other current assets
Total current assets
Total assets
Note no.
As at March 31,
2021
2020
in ` crore
2.1
2.3
2.2
2.2
2.4
2.5
2.6
2.16
2.16
2.9
2.4
2.7
2.8
2.5
2.6
2.9
10,930
3,435
906
167
67
22,118
30
613
955
5,287
1,149
45,657
2,037
16,394
17,612
229
5,226
6,784
48,282
93,939
11,092
2,805
945
29
48
13,916
298
613
1,429
4,773
1,273
37,221
4,006
15,459
13,562
307
4,398
6,088
43,820
81,041
Infosys Annual Report 2020-21
Standalone financial statements | 157
Balance Sheet (contd.)
Particulars
Equity and liabilities
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities
Other financial liabilities
Deferred tax liabilities (net)
Other non-current liabilities
Total non-current liabilities
Current liabilities
Financial liabilities
Trade payables
Total outstanding dues of micro enterprises and small enterprises
Total outstanding dues of creditors other than micro enterprises and
small enterprises
Lease liabilities
Other financial liabilities
Other current liabilities
Provisions
Income tax liabilities (net)
Total current liabilities
Total equity and liabilities
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
Note no.
As at March 31,
2021
2020
2.11
2.3
2.12
2.16
2.14
2.13
2.3
2.12
2.14
2.15
2.16
2,130
69,401
71,531
2,129
60,105
62,234
3,367
259
511
649
4,786
2,775
49
556
207
3,587
–
–
1,562
487
8,359
4,816
661
1,737
17,622
93,939
1,529
390
7,936
3,557
506
1,302
15,220
81,041
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
158 | Standalone financial statements
Infosys Annual Report 2020-21
Statement of Profit and Loss
Particulars
Revenue from operations
Other income, net
Total income
Expenses
Employee benefit expenses
Cost of technical sub-contractors
Travel expenses
Cost of software packages and others
Communication expenses
Consultancy and professional charges
Depreciation and amortization expense
Finance cost
Other expenses
Total expenses
Profit before tax
Tax expense
Current tax
Deferred tax
Profit for the year
in ` crore except equity share and per equity share data
Note no.
Year ended March 31,
2.17
2.18
2.19
2.19
2.1 & 2.2.2
& 2.3
2.3
2.19
2.16
2.16
2021
85,912
2,467
88,379
45,179
9,528
484
2,058
464
999
2,321
126
2,743
63,902
24,477
6,013
416
18,048
2020
79,047
2,700
81,747
42,434
8,447
2,241
1,656
381
1,066
2,144
114
2,787
61,270
20,477
5,235
(301)
15,543
Infosys Annual Report 2020-21
Standalone financial statements | 159
Statement of Profit and Loss (contd.)
Particulars
Note no.
Year ended March 31,
2021
2020
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
2.16 & 2.20
2.4 & 2.16
Fair value changes on derivatives designated as cash flow hedge, net
Fair value changes on investments, net
2.10 & 2.16
2.4 & 2.16
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
Earnings per equity share
Equity shares of par value ` 5 each
Basic (`)
Diluted (`)
Weighted average equity shares used in computing earnings per equity
share
Basic
Diluted
148
120
25
(102)
191
18,239
(184)
(31)
(36)
17
(234)
15,309
42.37
42.33
36.34
36.32
2.21
2.21
425,94,38,950 427,70,30,249
426,30,92,514 427,98,08,826
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
160 | Standalone financial statements
Infosys Annual Report 2020-21
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1
Particulars
Balance as at April 1, 2019
Impact on account of adoption of Ind AS
116(1) (Refer to Note 2.3)
Changes in equity for the year ended
March 31, 2020
Profit for the year
Remeasurement of the net defined benefit
liability / asset(1)
Equity instruments through other
comprehensive income(1)
(Refer to Notes 2.4 and 2.16)
Fair value changes on derivatives
designated as cash flow hedge(1)
(Refer to Note 2.10)
Fair value changes on investments, net(1)
(Refer to Notes 2.4 and 2.16)
Total comprehensive income for the year
Transfer to general reserve
Transferred to Special Economic Zone
Re-investment Reserve
Transferred from Special Economic Zone
Re-investment Reserve on utilization
Amount transferred to capital redemption
reserve upon buyback (Refer to Note 2.11)
Transfer on account of exercise of stock
options (Refer to Note 2.11)
Transfer on account of options not
exercised
Shares issued on exercise of employee
stock options (Refer to Note 2.11)
Effect of modification of equity-settled
share-based payment awards to
cash-settled awards (Refer to Note 2.11)
Share-based payment to employees
(Refer to Note 2.11)
Reserves on common controlled
transactions
Income tax benefit arising on exercise of
stock options
Statement of Changes in Equity for the year ended March 31, 2020
Equity
share
capital
Securities
premium
Retained
earnings
General
reserve
Reserves and surplus
Share options
outstanding
account
2,178
138
54,070
190
–
2,178
–
138
(17)
54,053
–
190
227
–
227
Special
Economic
Zone Re-
investment
Reserve(2)
2,479
54
3,219
–
2,479
–
54
–
3,219
Other equity
Capital reserve
Capital
reserve
Other
reserves(3)
Capital
redemption
reserve
in ` crore
Total equity
attributable to
equity holders of
the Company
Other comprehensive income
Effective
portion of cash
flow hedges
Other items
of other
comprehensive
income / (loss)
Equity
instruments
through other
comprehensive
income
80
–
80
–
–
(31)
–
–
(31)
–
–
–
–
–
–
–
–
–
–
–
61
–
61
–
–
–
–
–
–
–
–
–
50
–
–
–
–
–
–
–
21
–
21
–
–
–
(36)
–
(36)
–
–
–
–
–
–
–
–
–
–
–
(6)
–
(6)
62,711
(17)
62,694
–
15,543
(184)
(184)
–
–
17
(167)
–
–
–
–
–
–
–
–
–
–
–
(31)
(36)
17
15,309
–
–
–
–
–
–
2
(57)
238
(137)
9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
119
–
2
–
–
–
9
15,543
–
–
–
–
–
–
–
–
15,543
(1,470)
–
–
1,470
(2,464)
1,036
–
–
–
–
(9)
–
–
–
–
–
(50)
–
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(119)
(1)
–
(48)
238
–
–
–
–
–
–
–
–
–
2,464
(1,036)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(137)
–
1
6
2
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f
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2
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2
0
-
2
1
Particulars
Balance as at April 1, 2020
Changes in equity for the year ended
March 31, 2021
Profit for the year
Remeasurement of the net defined benefit
liability / asset(1)
Equity instruments through other
comprehensive income(1)
(Refer to Notes 2.4 and 2.16)
Fair value changes on derivatives
designated as cash flow hedge(1)
(Refer to Note 2.10)
Fair value changes on investments, net(1)
(Refer to Notes 2.4 and 2.16)
Total comprehensive income for the year
Transfer to general reserve
Transferred to Special Economic Zone
Re-investment reserve
Transferred from Special Economic Zone
Re-investment reserve on utilization
Transfer on account of exercise of stock
options (Refer to Note 2.11)
Transfer on account of options not
exercised
Particulars
Buyback of equity shares
(Refer to Notes 2.11 and 2.12)
Transaction cost relating to buyback(1)
(Refer to Note 2.11)
Dividends (including dividend
distribution tax)
Balance as at March 31, 2020
Equity
share
capital
(49)
–
–
2,129
Securities
premium
Retained
earnings
General
reserve
Reserves and surplus
Share options
outstanding
account
Capital reserve
Capital
reserve
Other
reserves(3)
Capital
redemption
reserve
Special
Economic
Zone Re-
investment
Reserve(2)
Other comprehensive income
Equity
instruments
through other
comprehensive
income
Effective
portion of cash
flow hedges
Other items
of other
comprehensive
income / (loss)
Other equity
Total equity
attributable to
equity holders of
the Company
–
–
(4,717)
(1,494)
–
(11)
–
268
(9,553)
52,419
–
106
–
–
–
297
–
–
–
3,907
–
–
–
54
–
–
–
3,082
–
–
–
111
–
–
–
49
–
–
–
(15)
–
–
–
(173)
(6,260)
(11)
(9,553)
62,234
Statement of Changes in Equity for the year ended March 31, 2021
Equity
share
capital
Securities
premium
Retained
earnings
General
reserve
Reserves and surplus
Share options
outstanding
account
2,129
268
52,419
106
297
Other equity
Capital reserve
Other
reserves(3)
Capital
reserve
Capital
redemption
reserve
54
3,082
111
Special
Economic
Zone Re-
investment
Reserve(2)
3,907
Equity
instruments
through other
comprehensive
income
49
Other comprehensive income
Effective
portion of cash
flow hedges
Other items
of other
comprehensive
income / (loss)
–
–
–
–
–
–
–
–
–
–
–
18,048
–
–
–
–
–
–
–
–
18,048
(1,554)
–
–
1,554
–
–
–
–
–
–
–
–
–
(3,204)
967
260
–
–
–
–
–
–
3
–
–
–
–
–
–
–
–
–
(260)
(3)
–
–
–
–
–
–
–
3,204
(967)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
120
–
–
120
–
–
–
–
–
in ` crore
Total equity
attributable to
equity holders of
the Company
(15)
(173)
62,234
–
–
–
25
–
25
–
–
–
–
–
–
18,048
148
–
–
(102)
46
–
–
–
–
–
148
120
25
(102)
18,239
–
–
–
–
–
Particulars
Shares issued on exercise of employee
stock options (Refer to Note 2.11)
Effect of modification of share-based
payment awards
Employee stock compensation expense
(Refer to Note 2.11)
Income tax benefit arising on exercise of
stock options
Reserves recorded upon business
transfer under common control
(Refer to Note 2.4.1)
Dividends
Balance as at March 31, 2021
(1) net of tax
Equity
share
capital
Securities
premium
Retained
earnings
General
reserve
Reserves and surplus
Share options
outstanding
account
Other equity
Capital reserve
Other
reserves(3)
Capital
reserve
Capital
redemption
reserve
Special
Economic
Zone Re-
investment
Reserve(2)
Other comprehensive income
Equity
instruments
through other
comprehensive
income
Effective
portion of cash
flow hedges
Other items
of other
comprehensive
income / (loss)
Total equity
attributable to
equity holders of
the Company
1
–
–
–
8
–
–
45
–
–
–
–
–
–
–
–
–
–
2,130
–
–
581
–
(9,158)
57,518
–
–
1,663
–
85
253
–
–
–
372
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,144
–
–
54
(176)
–
2,906
–
–
111
–
–
169
–
–
–
–
–
–
10
–
–
–
–
9
85
253
45
–
–
(127)
(176)
(9,158)
71,531
(2) The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1) (ii) of Income-tax Act,1961. The reserve should be utilized
by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income-tax Act, 1961.
(3) Profit / loss on transfer of business between entities under common control taken to reserve.
The accompanying notes form an integral part of the standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Jayesh Sanghrajka
Executive Vice President and Deputy Chief
Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
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1
6
3
Statement of Cash Flows
Accounting policy
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known
amounts of cash to be cash equivalents.
Particulars
Cash flow from operating activities
Profit for the year
Adjustments to reconcile net profit to net cash provided by operating activities
Depreciation, amortization and provision for impairment
Income tax expense
Impairment loss recognized / (reversed) under expected credit loss model
Finance cost
Interest and dividend income
Stock compensation expense
Other adjustments
Exchange differences on translation of assets and liabilities, net
Changes in assets and liabilities
Trade receivables and unbilled revenue
Loans, other financial assets and other assets
Trade payables
Other financial liabilities, other liabilities and provisions
Cash generated from operations
Income taxes paid
Net cash generated by operating activities
Cash flow from investing activities
Expenditure on property, plant and equipment and intangibles
Deposits placed with corporations
Loans to employees
Loan given to subsidiaries
Loan repaid by subsidiaries
Proceeds from redemption of debentures
Investment in subsidiaries
Payment towards business transfer
Proceeds from liquidation of a subsidiary
Payment of contingent consideration pertaining to acquisition
Redemption of escrow pertaining to buyback
Other receipts
Payments to acquire investments
Preference, equity securities and others
Liquid mutual fund units and fixed maturity plan securities
Tax-free bonds and government bonds
Certificates of deposit
Non-convertible debentures
Government securities
Others
Proceeds on sale of investments
Preference and equity securities
Liquid mutual fund units and fixed maturity plan securities
Tax-free bonds and government bonds
Non-convertible debentures
Certificates of deposit
Commercial paper
Note no.
Year ended March 31,
2021
2020
in ` crore
18,048
15,543
2.1 & 2.2 &
2.3 & 2.24
2.16
2.3
2.12
2,604
6,429
152
126
(1,795)
297
(47)
(32)
(1,414)
(684)
(5)
2,284
25,963
(6,061)
19,902
(1,720)
(183)
–
(76)
328
623
(1,530)
(237)
173
(125)
–
49
–
(31,814)
(318)
–
(3,398)
(7,346)
(13)
73
32,996
–
944
900
–
2,144
4,934
127
114
(1,502)
226
(248)
17
(3,621)
319
(75)
1,475
19,453
(3,881)
15,572
(3,063)
(112)
(2)
(1,210)
444
286
(1,338)
–
–
(6)
257
46
(41)
(30,500)
(11)
(876)
(733)
(1,561)
(2)
–
30,332
12
1,788
2,175
500
164 | Standalone financial statements
Infosys Annual Report 2020-21
Particulars
Government securities
Others
Interest received
Dividend received from subsidiary
Net cash (used in) / from investing activities
Cash flow from financing activities
Payment of lease liabilities
Buyback of equity shares including transaction cost
Shares issued on exercise of employee stock options
Payment of dividends (including dividend distribution tax)
Net cash used in financing activities
Effect of exchange differences on translation of foreign currency cash and cash
equivalents
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Supplementary information
Restricted cash balance
2.2
2.7
2.7
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
Note no.
Year ended March 31,
2021
2,704
–
1,340
321
(6,309)
(420)
–
9
(9,155)
(9,566)
23
4,027
13,562
17,612
2020
1,673
9
1,817
–
(116)
(364)
(7,478)
2
(9,551)
(17,391)
(54)
(1,935)
15,551
13,562
154
101
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
Infosys Annual Report 2020-21
Standalone financial statements | 165
Overview and notes to the standalone financial statements
1. Overview
1.1 Company overview
Infosys Limited (“the Company” or Infosys) provides
consulting, technology, outsourcing and next-generation
digital services, to enable clients to execute strategies for
their digital transformation. Infosys’ strategic objective is to
build a sustainable organization that remains relevant to the
agenda of clients, while creating growth opportunities for
employees and generating profitable returns for investors.
Infosys’ strategy is to be a navigator for our clients as they
ideate, plan and execute on their journey to a digital future.
The Company is a public limited company incorporated and
domiciled in India and has its registered office at Electronics
City, Hosur Road, Bengaluru 560100, Karnataka, India.
The Company has its primary listings on the BSE Ltd. and
National Stock Exchange of India Limited. The Company’s
American Depositary Shares (ADS) representing equity shares
are listed on the New York Stock Exchange (NYSE).
The standalone financial statements are approved for issue by
the Company’s Board of Directors on April 14, 2021.
1.2 Basis of preparation of financial statements
These standalone financial statements are prepared in
accordance with Indian Accounting Standard (Ind AS),
under the historical cost convention on accrual basis except
for certain financial instruments which are measured at fair
values, the provisions of the Companies Act, 2013 (“the Act”)
and guidelines issued by the Securities and Exchange Board
of India (SEBI). The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and relevant amendment
rules issued thereafter.
Accounting policies have been consistently applied except
where a newly-issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded
to the nearest digits, the figures reported for the previous
quarters might not always add up to the year-end figures
reported in this statement.
1.3 Use of estimates and judgments
The preparation of the standalone financial statements in
conformity with Ind AS requires the Management to make
estimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and
liabilities, the disclosures of contingent assets and liabilities at
the date of the financial statements and reported amounts of
revenues and expenses during the period. The application of
accounting policies that require critical accounting estimates
involving complex and subjective judgments and the use
of assumptions in these financial statements have been
disclosed in Note 1.4. Accounting estimates could change
from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as the
Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected
in the financial statements in the period in which changes are
made and, if material, their effects are disclosed in the notes
to the standalone financial statements.
Estimation of uncertainties relating to the global health
pandemic from COVID-19 ("COVID-19")
The Company has considered the possible effects that may
result from the pandemic relating to COVID-19 in the
preparation of these standalone financial statements including
the recoverability of carrying amounts of financial and
non-financial assets. In developing the assumptions relating
to the possible future uncertainties in the global economic
conditions because of this pandemic, the Company has, at the
date of approval of these financial statements, used internal
and external sources of information including credit reports
and related information and economic forecasts and expects
that the carrying amount of these assets will be recovered.
The impact of COVID-19 on the Company’s financial
statements may differ from that estimated as at the date of
approval of these standalone financial statements.
1.4 Critical accounting estimates and judgments
a. Revenue recognition
The Company’s contracts with customers include promises
to transfer multiple products and services to a customer.
Revenues from customer contracts are considered for
recognition and measurement when the contract has been
approved, in writing, by the parties to the contract, the
parties to contract are committed to perform their respective
obligations under the contract, and the contract is legally
enforceable. The Company assesses the services promised in a
contract and identifies distinct performance obligations in the
contract. Identification of distinct performance obligations to
determine the deliverables and the ability of the customer to
benefit independently from such deliverables, and allocation
of transaction price to these distinct performance obligations
involve significant judgment.
Fixed-price maintenance revenue is recognized ratably on a
straight-line basis when services are performed through an
indefinite number of repetitive acts over a specified period.
Revenue from fixed-price maintenance contracts is recognized
ratably using the percentage-of-completion method when the
pattern of benefits from the services rendered to the customer
and the Company’s costs to fulfil the contract is not even
through the period of the contract because the services are
generally discrete in nature and not repetitive. The use of
method to recognize the maintenance revenues requires
judgment and is based on the promises in the contract and
nature of the deliverables.
The Company uses the percentage-of-completion method
in accounting for other fixed-price contracts. Use of the
percentage-of-completion method requires the Company to
determine the actual efforts or costs expended to date as a
proportion of the estimated total efforts or costs to be incurred.
Efforts or costs expended have been used to measure progress
166 | Standalone financial statements
Infosys Annual Report 2020-21
towards completion as there is a direct relationship between
input and productivity. The estimation of total efforts or costs
involves significant judgment and is assessed throughout the
period of the contract to reflect any changes based on the
latest available information.
Provisions for estimated losses, if any, on uncompleted
contracts are recorded in the period in which such losses
become probable based on the estimated efforts or costs to
complete the contract.
b. Income taxes
The Company’s two major tax jurisdictions are India and
the US, though the Company also files tax returns in other
overseas jurisdictions.
Significant judgments are involved in determining the
provision for income taxes, including amount expected to
be paid / recovered for uncertain tax positions. Also, refer to
Notes 2.16 and 2.22.
In assessing the realizability of deferred income tax assets,
the Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible.
The Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income and
tax-planning strategies in making this assessment. Based
on the level of historical taxable income and projections for
future taxable income over the periods in which the deferred
income tax assets are deductible, the Management believes
that the Company will realize the benefits of those deductible
differences. The amount of the deferred income tax assets
considered realizable, however, could be reduced in the near
term if estimates of future taxable income during the carry
forward period are reduced.
c. Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining
an estimate of an asset’s expected useful life and the expected
residual value at the end of its life. The useful lives and
residual values of the Company’s assets are determined by the
Management at the time the asset is acquired and reviewed
periodically, including at each financial year end. The lives
are based on historical experience with similar assets as well
as anticipation of future events, which may impact their life,
such as changes in technology (refer to Note. 2.1).
d. Leases
Ind AS 116 requires lessees to determine the lease term as the
non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option
is reasonably certain. The Company makes an assessment
on the expected lease term on a lease-by-lease basis and
thereby assesses whether it is reasonably certain that any
options to extend or terminate the contract will be exercised.
In evaluating the lease term, the Company considers factors
such as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of
the lease and the importance of the underlying asset to
Infosys’ operations taking into account the location of the
underlying asset and the availability of suitable alternatives.
The lease term in future periods is reassessed to ensure that
the lease term reflects the current economic circumstances.
After considering current and future economic conditions,
the Company has concluded that no material changes are
required to lease period relating to the existing lease contracts
(refer to Note 2.3).
e. Allowance for credit losses on receivables and
unbilled revenue
The Company determines the allowance for credit losses
based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The Company
considered current and anticipated future economic
conditions relating to industries the Company deals with
and the countries where it operates. In calculating expected
credit loss, the Company has also considered credit reports
and other related credit information for its customers to
estimate the probability of default in future and has taken
into account estimates of possible effect from the pandemic
relating to COVID-19.
2.1 Property, plant and equipment
Accounting policy
Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any. Costs
directly attributable to acquisition are capitalized until the
property, plant and equipment are ready for use, as intended
by the Management. The Company depreciates property,
plant and equipment over their estimated useful lives using
the straight-line method. The estimated useful lives of
assets are as follows:
Building(1)
Plant and machinery(1)(2)
Office equipment
Computer equipment(1)
Furniture and fixtures(1)
Vehicles(1)
Leasehold improvements
22-25 years
5 years
5 years
3-5 years
5 years
5 years
Lower of useful life of the
asset or lease term
(1) Based on technical evaluation, the Management believes that the
useful lives as given above best represent the period over which the
Management expects to use these assets. Hence, the useful lives for
these assets is different from the useful lives as prescribed under Part C
of Schedule II of the Companies Act, 2013.
(2) Includes a solar plant with a useful life of 20 years
Depreciation methods, useful lives and residual values are
reviewed periodically, including at each financial year end.
Advances paid towards the acquisition of property, plant and
equipment outstanding at each Balance Sheet date is classified
as capital advances under other non-current assets and the
cost of assets not ready to use before such date are disclosed
under ‘Capital work-in-progress’. Subsequent expenditures
relating to property, plant and equipment is capitalized only
when it is probable that future economic benefits associated
with these will flow to the Company and the cost of the item
can be measured reliably. Repairs and maintenance costs are
Infosys Annual Report 2020-21
Standalone financial statements | 167
recognized in the Statement of Profit and Loss when incurred.
The cost and related accumulated depreciation are eliminated
from the financial statements upon sale or retirement of the
asset and the resultant gains or losses are recognized in the
Statement of Profit and Loss.
Impairment
Property, plant and equipment are evaluated for recoverability
whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.
If such assets are considered to be impaired, the impairment
to be recognized in the Statement of Profit and Loss is
measured by the amount by which the carrying value of
the assets exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the Statement of
Profit and Loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net of
any accumulated depreciation) had no impairment loss been
recognized for the asset in prior years.
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2021 are as follows:
Particulars
Land –
Freehold
Buildings(1)(2)
Plant and
machinery(2)
Office
equipment(2)
Computer
equipment(2)
Furniture
and
fixtures(2)
Leasehold
improvements
Vehicles
in ` crore
Total
Gross carrying value as
at April 1, 2020
Additions
Additions through
Business transfer
(Refer to Note 2.3.1)
Deletions
Gross carrying value as
at March 31, 2021
Accumulated
depreciation as at
April 1, 2020
Depreciation
Provision for
impairment (Refer to
Note 2.24)
Accumulated
depreciation on
deletions
Accumulated
depreciation as at
March 31, 2021
Carrying value as at
April 1, 2020
Carrying value as at
March 31, 2021
1,316
82
9,038
508
3,038
113
1,094
110
5,690
975
1,875
92
669
134
43
1
22,763
2,015
–
(1)
–
–
–
(10)
–
(9)
6
(141)
–
(15)
2
(17)
–
–
8
(193)
1,397
9,546
3,141
1,195
6,530
1,952
788
44
24,593
–
–
–
–
(3,114)
(346)
(2,053)
(273)
(787)
(112)
(4,197)
(804)
(1,246)
(202)
(248)
(145)
(26)
(6)
(11,671)
(1,888)
–
(283)
–
9
–
8
–
–
–
–
(283)
131
14
17
–
179
–
(3,460)
(2,600)
(891)
(4,870)
(1,434)
(376)
(32)
(13,663)
1,316
5,924
985
307
1,493
629
421
17
11,092
1,397
6,086
541
304
1,660
518
412
12
10,930
168 | Standalone financial statements
Infosys Annual Report 2020-21
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2020 were as follows:
Particulars
Land –
Freehold
Land –
Leasehold
Buildings(1)(2)
Plant and
machinery(2)
Office
equipment(2)
Computer
equipment(2)
Furniture
and
fixtures(2)
Leasehold
improvements
Vehicles
in ` crore
Total
Gross carrying
value as at
April 1, 2019
Additions
Reclassification
on account of
adoption of Ind
AS 116 (Refer
to Note 2.3)
Deletions
Gross carrying
value as at
March 31,
2020
Accumulated
depreciation
as at April 1,
2019
Depreciation
Reclassification
on account of
adoption of
Ind AS 116
(Refer to Note
2.3)
Accumulated
depreciation
on deletions
Accumulated
depreciation as
at March 31,
2020
Carrying value
as at April 1,
2019
Carrying value
as at March 31,
2020
1,305
11
593
–
8,070
968
2,612
428
938
159
5,052
765
1,454
427
414
270
37
7
20,475
3,035
–
–
(593)
–
–
–
–
(2)
–
(3)
–
(127)
–
(6)
–
(15)
–
(1)
(593)
(154)
1,316
–
9,038
3,038
1,094
5,690
1,875
669
43
22,763
–
–
(32)
–
(2,797)
(317)
(1,762)
(293)
(672)
(118)
(3,605)
(718)
(1,039)
(213)
(153)
(110)
(21)
(6)
(10,081)
(1,775)
–
32
–
–
–
–
–
2
–
3
–
126
–
6
–
–
32
15
1
153
–
–
(3,114)
(2,053)
(787)
(4,197)
(1,246)
(248)
(26)
(11,671)
1,305
561
5,273
850
266
1,447
415
261
16
10,394
1,316
–
5,924
985
307
1,493
629
421
17
11,092
(1) Buildings include ` 250 being the value of five shares of ` 50 each in Mittal Towers Premises Co-operative Society Limited.
(2) Includes certain assets provided on cancellable operating lease to subsidiaries
included
The aggregate depreciation has been
under depreciation and amortization expense in the
Statement of Profit and Loss.
Tangible assets provided on operating lease to subsidiaries as
at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Computer equipment
Office equipment
Particulars
Buildings
Plant and machinery
Furniture and fixtures
Cost Accumulated
depreciation
98
91
30
30
24
24
186
186
30
30
24
24
in ` crore
Net book
value
88
95
–
–
–
–
Cost Accumulated
depreciation
3
3
16
16
3
3
16
16
Net book
value
–
–
–
–
in ` crore
Year ended March 31,
2021
2020
Particulars
Aggregate depreciation charged
on above assets
Rental income from subsidiaries
7
53
11
58
Infosys Annual Report 2020-21
Standalone financial statements | 169
2.2 Goodwill and other intangible assets
2.2.1 Goodwill
A summary of changes in the carrying amount of
goodwill is as follows:
Particulars
Carrying value at the beginning
Goodwill on business transfer
(Refer to Note 2.4.1)
Translation differences
Carrying value at the end
in ` crore
As at March 31,
2021
29
138
–
167
2020
29
–
–
29
The allocation of goodwill to operating segments as at
March 31, 2021 and March 31, 2020 is as follows:
Segment
Financial Services
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Operating segments without
significant goodwill
Total
in ` crore
As at March 31,
2021
55
26
22
22
17
142
25
167
2020
10
5
4
3
3
25
4
29
2.2.2 Other intangible assets
Accounting policy
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their
respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand,
competition, and other economic factors (such as the stability of the industry, and known technological advances), and the
level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and
useful lives are reviewed periodically including at each financial year end.
Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention
and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized
include the cost of material, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use.
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2021 are as follows:
Particulars
Gross carrying value as at April 1, 2020
Additions through business transfer
Deletions during the year
Gross carrying value as at March 31, 2021
Accumulated amortization as at April 1, 2020
Amortization expense
Accumulated amortization on deletions
Accumulated amortization as at March 31, 2021
Carrying value as at March 31, 2021
Carrying value as at April 1, 2020
Estimated useful life (in years)
Estimated remaining useful life (in years)
Customer-
related
113
–
–
113
(72)
(16)
–
(88)
25
41
7
2
Software-
related
–
54
–
54
–
(12)
–
(12)
42
–
2
2
Trade name-
related
26
–
–
26
(23)
(3)
–
(26)
–
3
5
–
Others
in ` crore
Total
165
54
–
219
(117)
(35)
–
(152)
67
48
26
–
–
26
(22)
(4)
–
(26)
–
4
5
–
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2020 were as follows:
Particulars
Gross carrying value as at April 1, 2019
Transfer of assets
Deletions during the year
Gross carrying value as at March 31, 2020
Accumulated amortization as at April 1, 2019
Transfer of assets
Amortization expense
Accumulated amortization on deletions
Accumulated amortization as at March 31, 2020
Customer-
related
113
–
–
113
(56)
–
(16)
–
(72)
Trade name-
related
26
–
–
26
(18)
–
(5)
–
(23)
Others
in ` crore
Total
26
–
–
26
(17)
–
(5)
–
(22)
165
–
–
165
(91)
–
(26)
–
(117)
170 | Standalone financial statements
Infosys Annual Report 2020-21
Customer-
related
41
57
7
3
Trade name-
related
3
8
5
1
Others
Total
48
74
4
9
5
1
The lease liability is initially measured at amortized cost at
the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in
the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding
adjustment to the related ROU asset if the Company changes
its assessment of whether it will exercise an extension or a
termination option.
Lease liability and ROU asset have been separately presented
in the Balance Sheet and lease payments have been classified
as financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to
the lessee, the contract is classified as a finance lease. All other
leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts
for its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a
straight-line basis over the term of the relevant lease.
Transition
Effective April 1, 2019, the Group adopted Ind AS 116, Leases
using the modified retrospective method. On transition, the
adoption of the new standard resulted in recognition of ‘Right
of Use’ asset of ` 1,861 crore, ‘Net investment in sublease’ of
ROU asset of ` 430 crore and a lease liability of ` 2,491 crore.
The cumulative effect of applying the standard, amounting
to ` 17 crore was debited to retained earnings, net of taxes.
The effect of this adoption is insignificant on the profit before
tax, profit for the period and earnings per share.
Particulars
Carrying value as at March 31, 2020
Carrying value as at April 1, 2019
Estimated useful life (in years)
Estimated remaining useful life (in years)
Research and development expense recognized in net profit
in the Statement of Profit and Loss for the years ended
March 31, 2021 and March 31, 2020 is ` 508 crore and ` 458
crore, respectively.
2.3 Leases
Accounting policy
The Company as a lessee
The Company’s lease asset classes primarily consist of leases
for land, buildings and computers. The Company assesses
whether a contract contains a lease at the inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits from
use of the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company
recognizes a right-of-use (ROU) asset and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of 12 months or less
(short-term leases) and low-value leases. For these short-term
and low-value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis
over the term of the lease.
Certain lease arrangements include the options to extend or
terminate the lease before the end of the lease term. ROU
assets and lease liabilities include these options when it is
reasonably certain that they will be exercised.
ROU assets are initially recognized at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.
ROU assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. ROU assets are
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not
be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.
Infosys Annual Report 2020-21
Standalone financial statements | 171
The changes in the carrying value of ROU assets for the year ended March 31, 2021 are as follows:
Particulars
Balance as at April 1, 2020
Additions(1)
Additions through business transfer (Refer to Note 2.4.1)
Deletions
Depreciation
Balance as at March 31, 2021
(1) Net of lease incentives of ` 93 crore related to lease of buildings
Category of ROU asset
Land
554
7
–
–
(5)
556
Buildings
2,209
1,010
8
(89)
(372)
2,766
Computers
42
92
–
–
(21)
113
The changes in the carrying value of ROU assets for the year ended March 31, 2020 were as follows:
Particulars
Balance as at April 1, 2019
Reclassified on account of adoption of Ind AS 116 (Refer to Note 2.1)
Additions(1)
Deletions
Depreciation
Balance as at March 31, 2020
(1) Net of lease incentives of ` 101 crore related to lease of buildings
Category of ROU asset
Land
–
561
1
(3)
(5)
554
Buildings
1,861
–
737
(58)
(331)
2,209
Computers
–
–
49
–
(7)
42
in ` crore
Total
2,805
1,109
8
(89)
(398)
3,435
in ` crore
Total
1,861
561
787
(61)
(343)
2,805
The aggregate depreciation expense on ROU assets is
included under depreciation and amortization expense in
the Statement of Profit and Loss.
The break-up of current and non-current lease liabilities as at
March 31, 2021 and March 31, 2020 is as follows:
Particulars
Current lease liabilities
Non-current lease liabilities
Total
in ` crore
As at March 31,
2021
487
3,367
3,854
2020
390
2,775
3,165
The movement in lease liabilities during the years ended
March 31, 2021 and March 31, 2020 is as follows:
Particulars
Balance at the beginning
Additions
Additions through business
combination
Finance cost accrued during the
period
Deletions
Payment of lease liabilities
Translation difference
Balance at the end
As at March 31,
2021
3,165
1,198
2020
2,491
886
10
–
125
(99)
(536)
(9)
3,854
114
(61)
(418)
153
3,165
The details of the contractual maturities of lease liabilities as
at March 31, 2021 and March 31, 2020 on an undiscounted
basis are as follows:
Particulars
Less than one year
One to five years
More than five years
Total
in ` crore
As at March 31,
2021
585
2,109
1,751
4,445
2020
512
1,744
1,490
3,746
The Company does not face a significant liquidity risk
with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as
and when they fall due.
Rental expense recorded for short-term leases was ` 24 crore
and ` 37 crore for the years ended March 31, 2021 and
March 31, 2020, respectively.
Rental income on assets given on operating lease to
subsidiaries was ` 53 crore and ` 58 crore for the years ended
March 31, 2021 and March 31, 2020, respectively.
The movement in the net investment in sublease in ROU
asset during the years ended March 31, 2021 and March
31, 2020 is as follows:
Particulars
Balance at the beginning of the
period
Interest income accrued during
the period
Lease receipts
Translation difference
Balance at the end of the period
in ` crore
As at March 31,
2021
2020
433
430
14
(49)
(13)
385
15
(46)
34
433
The details of the contractual maturities of net investment in
sublease of ROU asset as at March 31, 2021 and March 31,
2020 on an undiscounted basis are as follows:
Particulars
Less than one year
One to five years
More than five years
Total
in ` crore
As at March 31,
2021
50
216
179
445
2020
50
217
244
511
172 | Standalone financial statements
Infosys Annual Report 2020-21
Leases not yet commenced to which the Company is committed is ` 179 crore for a lease term ranging from five years to 10 years.
2.4
Investments
Particulars
Non-current investments
Equity instruments of subsidiaries
Debentures of subsidiary
Redeemable preference shares of subsidiary
Preference securities and equity instruments
Compulsorily convertible debentures
Others
Tax-free bonds
Government bonds
Non-convertible debentures
Government securities
Total non-current investments
Current investments
Liquid mutual fund units
Certificates of deposit
Fixed maturity plans securities
Non-convertible debentures
Total current investments
Total carrying value
Particulars
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited
3,38,23,444 (3,38,23,444) equity shares of ` 10 each, fully paid up
Infosys Technologies (China) Co. Limited
Infosys Technologies, S. de R.L. de C.V., Mexico
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB
1,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologies (Shanghai) Company Limited
Infosys Public Services, Inc.
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG
23,350 (23,350) – Class A shares of CHF 1,000 each and
26,460 (26,460) – Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.
10,000 (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited
131,18,40,000 (131,18,40,000) equity shares of ` 10 each, fully paid up
Infosys Nova Holdings LLC(1)
Infosys Consulting Pte Ltd
1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid
Brilliant Basics Holding Limited
1,346 (1,346) shares of GBP 0.005 each, fully paid up
Infosys Arabia Limited
70 (70) shares
Kallidus Inc.
Nil (10,21,35,416) shares
Skava Systems Private Limited
25,000 (25,000) shares of ` 10 each, fully paid up
in ` crore
As at March 31,
2021
2020
8,933
536
1,318
167
7
42
2,131
13
3,669
5,302
22,118
1,326
–
–
711
2,037
24,155
7,553
1,159
1,318
103
–
30
1,825
13
1,251
664
13,916
2,019
886
428
673
4,006
17,922
in ` crore, except as otherwise stated
As at March 31,
2021
2020
660
369
65
76
900
99
660
333
65
76
900
99
1,323
1,323
1
1
1,312
1,312
2,637
10
1,335
10
59
2
–
59
59
2
150
59
Infosys Annual Report 2020-21
Standalone financial statements | 173
Particulars
Panaya Inc.
2(2) shares of USD 0.01 per share, fully paid up
Infosys Chile SpA
100 (100) shares
WongDoody Holding Company Inc
2,000 (2,000) shares
Infosys Luxembourg S.a r.l.
20,000 (3,700) shares
Infosys Austria GmBH (formerly known as Lodestone Management Consultants GmbH)
80,000 (80,000) shares of EUR 1 par value, fully paid up
Infosys Consulting Brazil
27,50,71,070 (16,49,15,570) shares of BRL 1 per share, fully paid up
Infosys Romania
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Bulgaria
4,58,000 (Nil) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH
25000 (Nil) shares EUR 1 per share, fully paid up
Investment in redeemable preference shares of subsidiary
Infosys Consulting Pte Ltd
24,92,00,000 (24,92,00,000) shares of SGD 1 per share, fully paid up
Investment carried at amortized cost
Investment in debentures of subsidiary
EdgeVerve Systems Limited
5,36,00,000 (11,59,00,000) Unsecured redeemable, non-convertible debentures of
` 100 each fully paid up
Investments carried at fair value through profit or loss
Compulsorily convertible debentures
Others(2)
Investment carried at fair value through other comprehensive income
Preference securities
Equity instruments
Quoted
Investments carried at amortized cost
Tax-free bonds
Government bonds
Investments carried at fair value through other comprehensive income
Non-convertible debentures
Government securities
Total non-current investments
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units
Investments carried at fair value through other comprehensive income
Certificates of deposit
Quoted
Investments carried at fair value through profit or loss
Fixed maturity plan securities
As at March 31,
2021
582
7
2020
582
7
380
359
17
–
337
34
2
2
4
–
183
34
–
–
1,318
1,318
10,251
8,871
536
536
7
42
49
165
2
167
2,131
13
2,144
3,669
5,302
8,971
22,118
1,159
1,159
–
30
30
101
2
103
1,825
13
1,838
1,251
664
1,915
13,916
1,326
1,326
2,019
2,019
–
–
–
–
886
886
428
428
174 | Standalone financial statements
Infosys Annual Report 2020-21
Particulars
Investments carried at fair value through other comprehensive income
Non-convertible debentures
Total current investments
Total investments
Aggregate amount of quoted investments
Market value of quoted investments (including interest accrued), current
Market value of quoted investments (including interest accrued), non-current
Aggregate amount of unquoted investments
(1) Aggregate amount of impairment in value of investments
Reduction in the fair value of assets held for sale
Adjustment in respect of excess of carrying amount over recoverable amount on reclassification from “Held for Sale”
Investments carried at cost
Investments carried at amortized cost
Investments carried at fair value through other comprehensive income
Investments carried at fair value through profit or loss
As at March 31,
2021
2020
711
711
2,037
24,155
11,826
713
11,507
12,329
94
854
–
10,251
2,680
9,849
1,375
673
673
4,006
17,922
4,854
1,101
4,048
13,068
121
854
469
8,871
2,997
3,577
2,477
(2) Uncalled capital commitments outstanding as of March 31, 2021 and March 31, 2020 was ` 10 crore and ` 15 crore, respectively. Refer to Note 2.10 for
accounting policies on financial instruments.
The details of amounts recorded in other comprehensive income are as follows:
Particulars
Net gain / (loss) on
Non-convertible debentures
Government securities
Certificates of deposit
Equity and preference securities
Method of fair valuation
March 31, 2021
March 31, 2020
Year ended
Gross
Tax
Net
Gross
(5)
(114)
(1)
136
1
17
–
(16)
(4)
(97)
(1)
120
23
–
(5)
(29)
Tax
(3)
–
2
(2)
in ` crore
Net
20
–
(3)
(31)
Class of investment
Method
Liquid mutual fund units
Fixed maturity plan securities
Tax-free bonds and government bonds
Non-convertible debentures
Government securities
Certificates of deposit
Unquoted equity and preference securities
Unquoted compulsorily convertible
debentures
Others
Quoted price
Market observable inputs
Quoted price and market observable inputs
Quoted price and market observable inputs
Quoted price
Market observable inputs
Discounted cash flows method, market
multiples method, option pricing model
Discounted cash flows method
Discounted cash flows method, market
multiples method, option pricing model
Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments.
in ` crore
Fair value as at March 31,
2020
2,019
428
2,135
1,924
664
886
2021
1,326
–
2,527
4,380
5,302
–
167
103
7
42
–
30
2.4.1 Business transfer – Kallidus Inc. and Skava Systems Private Limited
On October 11, 2019, the Board of Directors of Infosys authorized the Company to execute a business transfer agreement
and related documents with its wholly-owned subsidiaries, Kallidus Inc. and Skava Systems Private Limited (together referred
to as “Skava”), to transfer the business of Skava to Infosys Limited, for a consideration based on an independent valuation.
Accordingly, on August 15, 2020, the Company entered into a business transfer agreement to transfer the business of Kallidus
Inc. and Skava Systems Private Limited for a consideration of ` 171 crore and ` 66 crore, respectively, on securing the requisite
regulatory approvals.
The transaction was between a holding company and a wholly-owned subsidiary. The resultant impact on account of the
business transfer was recorded in ‘Business Transfer Adjustment Reserve’ during the year ended March 31, 2021.
Infosys Annual Report 2020-21
Standalone financial statements | 175
On March 9, 2021, Kallidus Inc. was liquidated. Further, on March 29, 2021, the shareholders of Skava have approved to
voluntarily liquidate the affairs of the Company. Accordingly, Skava will complete the process of voluntary liquidation pursuant
to Section 59 of the Insolvency and Bankruptcy Code of 2016 and applicable provisions of the Companies Act, 2013.
The details of the assets and liabilities taken over upon business transfer are as follows:
Particulars
Goodwill
Intangible assets
Deferred tax assets / (liabilities)
Net assets / (liabilities), others
Total
Less: Consideration payable
Business transfer reserve
Kallidus
Inc.
89
54
(14)
(152)
(23)
171
(194)
Skava Systems
Private Limited
49
–
1
34
84
66
18
in ` crore
Total
138
54
(13)
(118)
61
237
(176)
2.4.3 Details of investments
The details of non-current other investments in preferred stock and equity instruments as at March 31, 2021 and March 31,
2020 are as follows:
Particulars
Preference securities
Airviz Inc.
2,82,279 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop Inc
11,05,934 (16,48,352) Series B Preferred Stock, fully paid up, par value USD 0.0001 each
Nivetti Systems Private Limited
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value ` 1 each
Trifacta Inc.
11,80,358 (11,80,358) Series C-1 Preferred Stock
19,59,823 (19,59,823) Series E Preferred Stock
Ideaforge Technology Private Limited
5,402 (5,402) Series A compulsorily convertible cumulative preference shares of ` 10 each,
fully paid up
Equity instrument
Merasport Technologies Private Limited
2,420 (2,420) equity shares at ` 8,052 each, fully paid up, par value ` 10 each
Global Innovation and Technology Alliance
15,000 (15,000) equity shares at ` 1,000 each, fully paid up, par value ` 1,000 each
Ideaforge Technology Private Limited
100 (100) equity shares at ` 10, fully paid up
Compulsorily convertible debentures
Ideaforge Technology Private Limited
3,886 (Nil) compulsorily convertible debentures, fully paid up, par value ` 19,300 each
Others
Stellaris Venture Partners India
in ` crore, except as otherwise stated
As at March 31,
2021
2020
–
94
20
40
11
–
2
–
7
–
40
10
42
9
–
2
–
–
42
216
30
133
2.4.4 Details of investments in tax-free bonds and government bonds
The balances held in tax-free bonds as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Face value `
March 31, 2021
March 31, 2020
Units
Amount
Units
Amount
in ` crore, except as otherwise stated
7.04% Indian Railway Finance Corporation
Limited Bonds 03MAR2026
7.16% Power Finance Corporation Limited Bonds
17JUL2025
7.18% Indian Railway Finance Corporation
Limited Bonds 19FEB2023
10,00,000
470
49
470
10,00,000
1,000
104
1,000
1,000
20,00,000
200
20,00,000
49
105
201
176 | Standalone financial statements
Infosys Annual Report 2020-21
Particulars
Face value `
March 31, 2021
March 31, 2020
Units
Amount
Units
Amount
7.28% Indian Railway Finance Corporation
Limited Bonds 21DEC2030
7.28% National Highways Authority of India
Limited Bonds 18SEP2030
7.34% Indian Railway Finance Corporation
Limited Bonds 19FEB2028
7.35% National Highways Authority of India
Limited Bonds 11JAN2031
7.93% Rural Electrification Corporation Limited
Bonds 27MAR2022
8.10% Indian Railway Finance Corporation
Limited Bonds 23FEB2027
8.26% India Infrastructure Finance Company
Limited Bonds 23AUG2028
8.30% National Highways Authority of India
Limited Bonds 25JAN2027
8.35% National Highways Authority of India
Limited Bonds 22NOV2023
8.46% India Infrastructure Finance Company
Limited Bonds 30AUG2028
8.46% Power Finance Corporation Limited Bonds
30AUG2028
8.48% India Infrastructure Finance Company
Limited Bonds 05SEP2028
8.54% Power Finance Corporation Limited Bonds
16NOV2028
8.76% National Housing Bank 13JAN2034
Total investments in tax-free bonds
1,000
4,22,800
42
4,22,800
10,00,000
3,300
341
3,300
1,000
21,00,000
210
21,00,000
1,000
5,71,396
57
5,71,396
1,000
2,00,000
20
2,00,000
1,000
5,00,000
52
5,00,000
10,00,000
1,000
100
1,000
1,000
5,00,000
52
5,00,000
10,00,000
1,500
10,00,000
2,000
10,00,000
1,500
10,00,000
2,400
150
200
150
289
1,500
2,000
1,500
450
42
341
210
57
20
52
100
53
150
200
150
45
1,000
5,000
5,00,000
92,000
68,99,366
50
65
2,131
5,00,000
–
68,05,416
50
–
1,825
The balances held in government bonds as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Treasury Notes Philippines Govt. 04DEC2022
Total investments in government bonds
Face value
PHP
10,000
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
Units
9,000
9,000
Amount
13
13
Units
9,000
9,000
Amount
13
13
2.4.5 Details of investments in liquid mutual fund units and fixed maturity plan securities
The balances held in liquid mutual fund as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
Units
Amount
Units
Amount
Aditya Birla Sun life Corporate Bond Fund – Growth – Direct
Plan
Aditya Birla Sun Life Overnight Fund – Growth – Direct Plan
Axis Liquid Fund – Growth Option – Direct Plan
Axis Treasury Advantage Fund – Growth
HDFC Liquid Fund – Direct Plan – Growth Option
HDFC Overnight Fund Direct Plan – Growth Option
ICICI Prudential Liquid Fund – Direct Plan – Growth
ICICI Prudential Overnight Fund – Direct Plan – Growth
IDFC Banking and PSU fund – Direct Plan – Growth Option
IDFC Cash Fund – Direct Plan – Growth
Kotak Liquid Fund – Direct Plan – Growth
Nippon India Liquid Fund – Direct Plan Growth Plan –
Growth Option
SBI Overnight Fund – Direct Plan – Growth
SBI Premier Liquid Fund – Direct Plan – Growth
UTI Overnight Fund – Direct Plan – Growth
Total investments in liquid mutual fund units
–
7,64,116
8,99,316
–
–
3,27,018
–
1,40,75,822
–
4,02,284
6,28,350
1,98,715
4,84,107
–
5,51,036
1,83,30,764
–
85
206
–
–
100
–
156
–
100
262
2,66,97,315
–
–
8,65,146
5,55,555
10,10,508
77,26,245
–
8,88,49,927
–
7,47,509
100
162
–
155
–
9,22,151
3,31,803
–
1,326 12,77,06,159
211
–
–
201
217
300
227
–
160
–
300
–
300
103
–
2,019
Infosys Annual Report 2020-21
Standalone financial statements | 177
The balances held in fixed maturity plan security as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Aditya Birla Sun Life Fixed Term Plan – Series OD 1145 Days
– GR Direct
Aditya Birla Sun Life Fixed Term Plan – Series OE 1153 days
– GR Direct
HDFC FMP 1155D Feb 2017 – Direct Growth – Series 37
HDFC FMP 1169D Feb 2017 – Direct – Quarterly Dividend
– Series 37
ICICI FMP Series 80-1194 D Plan F Div
ICICI Prudential Fixed Maturity Plan Series 80-1187 Days
Plan G Direct Plan
ICICI Prudential Fixed Maturity Plan Series 80-1253 Days
Plan J Direct Plan
IDFC Fixed Term Plan Series 129 Direct Plan – Growth 1147
Days
IDFC Fixed Term Plan Series 131 Direct Plan – Growth 1139
Days
Kotak FMP Series 199 Direct – Growth
Nippon India Fixed Horizon Fund-XXXII Series 8 – Dividend
Plan
Total investments in fixed maturity plan securities
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
Units
Amount
Units
Amount
–
–
–
–
–
–
–
–
–
–
–
–
– 5,00,00,000
– 2,50,00,000
– 2,80,00,000
– 4,50,00,000
– 4,00,00,000
– 4,20,00,000
– 3,00,00,000
– 1,00,00,000
– 1,50,00,000
– 3,50,00,000
62
31
35
45
50
52
37
12
19
43
– 3,50,00,000
– 35,50,00,000
42
428
2.4.6 Details of investments in non-convertible debentures, government securities, certificates of deposit and
commercial paper
The balances held in non-convertible debenture units as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Face value `
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
5.35% LIC Housing Finance Ltd 20MAR2023
5.53% LIC Housing Finance Ltd 20DEC2024
5.40% Housing Development Finance
Corporation Ltd 11AUG2023
5.78% Housing Development Finance
Corporation Ltd 25NOV2025
6.40% LIC Housing Finance Ltd 24JAN2025
6.43% Housing Development Finance
Corporation Ltd 29SEP2025
6.95%Housing Development Finance
Corporation Ltd 27APR2023
6.99% Housing Development Finance
Corporation Ltd 13FEB2023
7.03% LIC Housing Finance Ltd 28DEC2021
7.20% Housing Development Finance
Corporation Ltd 13APR2023
7.24% LIC Housing Finance Ltd 23AUG2021
7.33% LIC Housing Finance Ltd 12FEB2025
7.35% Housing Development Finance
Corporation Ltd 10FEB2025
7.40% LIC Housing Finance Ltd 06SEP2024
7.59% LIC Housing Finance Ltd 14OCT2021
7.75% LIC Housing Finance Ltd 27AUG2021
7.79% LIC Housing Finance Ltd 19JUN2020
7.81% LIC Housing Finance Ltd 27APR2020
8.37% LIC Housing Finance Ltd 10MAY2021
8.49% Housing Development Finance
Corporation Ltd 27APR2020
10,00,000
10,00,000
Units
1,000
4,000
Amount
100
400
Units
–
–
Amount
–
–
10,00,000
4,500
10,00,000
10,00,000
7,750
4,000
10,00,000
5,250
10,00,000
1,250
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
750
2,500
500
2,500
1,750
850
1,500
–
1,250
–
–
500
5,00,000
–
468
776
402
545
137
78
262
55
264
184
88
163
–
132
–
–
54
–
–
–
–
–
–
–
2,500
–
2,500
–
–
–
3,000
1,250
500
2,000
500
900
–
–
–
–
–
–
254
–
259
–
–
–
312
131
53
215
54
49
178 | Standalone financial statements
Infosys Annual Report 2020-21
Particulars
8.50% Housing Development Finance
Corporation Ltd 31AUG2020
8.50% LIC Housing Finance Ltd 20JUN2022
8.60% LIC Housing Finance Ltd 29JUL2020
8.75% LIC Housing Finance Ltd 21DEC2020
9.05% Housing Development Finance
Corporation Ltd 20NOV2023
Total investments in non-convertible
debentures
Face value `
March 31, 2021
March 31, 2020
Units
Amount
Units
Amount
1,00,00,000
10,00,000
10,00,000
10,00,000
–
2,200
–
–
10,00,000
250
–
244
–
–
28
100
2,200
1,400
1,000
–
106
241
149
101
–
42,300
4,380
17,850
1,924
The balances held in government securities as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Face value `
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
5.79% Government of India 11MAY2030
6.45% Government of India 07OCT2029
7.17% Government of India 8JAN2028
7.26% Government of India 14JAN2029
7.57% Government of India 17JUN2033
7.88% Government of India 19MAR2030
8.08% Government of India 02AUG2022
8.24% Government of India 15FEB2027
8.32% Government of India 02AUG2032
Total investments in government securities
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Units
4,10,000
17,00,000
–
13,50,000
9,50,000
2,50,000
50,000
2,00,000
1,00,000
50,10,000
Amount
402
1,760
–
1,439
1,039
273
53
222
114
5,302
Units
–
–
1,25,000
5,00,000
–
–
–
–
–
6,25,000
Amount
–
–
132
532
–
–
–
–
–
664
The balances held in certificates of deposit as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Face value
March 31, 2021
in ` crore, except as otherwise stated
March 31, 2020
Bank of Baroda
Oriental Bank of Commerce
Total investments in certificates of deposit
1,00,000
1,00,000
Units
–
–
–
Amount
–
–
–
Units
65,000
25,000
90,000
Amount
638
248
886
2.5 Loans
Particulars
Non-current
Loan receivables considered
good – Unsecured
Loans to subsidiaries
Other loans
Loans to employees
Unsecured, considered doubtful
Other loans
Loans to employees
Less: Allowance for doubtful
loans to employees
Total non-current loans
Current
Loan receivables considered
good – Unsecured
Loans to subsidiaries
Other loans
Loans to employees
Total current loans
Total loans
Infosys Annual Report 2020-21
2.6 Other financial assets
in ` crore
As at March 31,
Particulars
2021
2020
in ` crore
As at March 31,
2021
2020
Non-current
Security deposits(1)
Net investment in sublease of
right-of-use asset(1)
Rental deposits(1)
Unbilled revenues(1)(5)#
Others(1)
Total non-current other
financial assets
Current
Security deposits(1)
Rental deposits(1)
Restricted deposits(1)*
Unbilled revenues(1)(5)#
Interest accrued but not due(1)
Foreign currency forward and
options contracts(2)(3)
Net investment in sublease of
right-of-use asset(1)
Others(1)(4)
Total current other financial
assets
277
21
298
24
322
24
298
103
204
307
605
–
30
30
23
53
23
30
96
133
229
259
45
348
164
11
45
613
1
10
1,826
2,139
553
178
37
482
46
398
169
–
–
613
1
4
1,643
1,973
441
19
35
282
5,226
4,398
Standalone financial statements | 179
Particulars
Total other financial assets
(1) Financial assets carried at amortized
cost
(2) Financial assets carried at fair value
through other comprehensive
income
(3) Financial assets carried at fair value
through profit or loss
(4) Includes dues from subsidiaries
(5) Includes dues from subsidiaries
As at March 31,
2021
5,839
2020
5,011
5,661
4,992
25
153
182
82
9
10
65
84
* Restricted deposits represent deposits with financial institutions to settle
employee-related obligations as and when they arise during the normal
course of business.
# Classified as financial asset as right to consideration is unconditional
and is due only after a passage of time.
2.7 Trade receivables
Particulars
Current
Unsecured
Considered good(2)
Considered doubtful
Less: Allowances for credit
losses
Total trade receivables(1)
(1) Includes dues from companies where
directors are interested
(2) Includes dues from subsidiaries
2.8 Cash and cash equivalents
Particulars
Balances with banks
In current and deposit
accounts
Cash on hand
Others
Deposits with financial
institutions
Total cash and cash equivalents
Balances with banks in unpaid
dividend accounts
Deposit with more than 12
months maturity
Balances with banks held as
margin money deposits against
guarantees
in ` crore
As at March 31,
2021
2020
16,394
543
16,937
15,459
491
15,950
543
16,394
491
15,459
–
203
–
408
in ` crore
As at March 31,
2021
2020
3,820
17,612
5,514
13,562
33
30
11,948
6,171
71
71
Cash and cash equivalents as at March 31, 2021 and
March 31, 2020 include restricted cash and bank balances of
` 154 crore and ` 101 crore, respectively. The restrictions are
primarily on account of bank balances held as margin money
deposits against guarantees.
The deposits maintained by the Company with banks and
financial institutions comprise time deposits, which can be
withdrawn by the Company at any point without prior notice
or penalty on the principal.
2.9 Other assets
Particulars
Non-current
Capital advances
Advances other than capital
advance
Others
Prepaid expenses
Defined benefit assets
Deferred contract cost
Unbilled revenues(2)
Withholding taxes and others
Total non-current other assets
Current
Advances other than capital
advance
Payment to vendors for
supply of goods
Others
Prepaid expenses(1)
Unbilled revenues(2)
Deferred contract cost
Withholding taxes and others
Other receivables
Total current other assets
Total other assets
(1) Includes dues from subsidiaries
(2) Classified as non-financial
asset as the contractual right
to consideration is dependent
on completion of contractual
milestones.
in ` crore
As at March 31,
2021
2020
141
310
64
9
73
175
687
1,149
51
143
10
–
759
1,273
131
129
874
3,904
40
1,832
3
6,784
7,933
237
736
3,856
11
1,356
–
6,088
7,361
168
2.10 Financial instruments
Accounting policy
2.10.1 Initial recognition
The Company recognizes financial assets and financial
liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities
are recognized at fair value on initial recognition, except for
trade receivables which are initially measured at transaction
price. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities,
which are not at fair value through profit or loss, are added
to the fair value on initial recognition. Regular way purchase
and sale of financial assets are accounted for at trade date.
13,792
–
8,048
–
Withholding taxes and others primarily consist of input tax
credits and Cenvat recoverable from the Government of India.
180 | Standalone financial statements
Infosys Annual Report 2020-21
2.10.2 Subsequent measurement
a. Non-derivative financial instruments
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if
it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
(ii) Financial assets at
through other
fair value
comprehensive income (FVOCI)
A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. The Company
has made an irrevocable election for its investments which
are classified as equity instruments to present the subsequent
changes in fair value in other comprehensive income based
on its business model.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above
categories is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
using the effective interest method, except for contingent
consideration recognized in a business combination which
is subsequently measured at fair value through profit or loss.
For trade and other payables maturing within one year from
the Balance Sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.
(v) Investment in subsidiaries
Investment in subsidiaries is carried at cost in the separate
financial statements.
b. Derivative financial instruments
The Company holds derivative financial instruments such
as foreign exchange forward and options contracts to
mitigate the risk of changes in exchange rates on foreign
currency exposures. The counterparty for these contracts
is generally a bank.
(i) Financial assets or financial liabilities, at fair value
through profit or loss.
This category includes derivative financial assets or liabilities
which are not designated as hedges.
Although the Company believes that these derivatives
constitute hedges from an economic perspective, they may
not qualify for hedge accounting under Ind AS 109, Financial
Instruments. Any derivative that is either not designated as
hedge, or is so designated but is ineffective as per Ind AS 109,
is categorized as a financial asset or financial liability, at fair
value through profit or loss.
Derivatives not designated as hedges are recognized initially
at fair value and attributable transaction costs are recognized
in net profit in the Statement of Profit and Loss when
incurred. Subsequent to initial recognition, these derivatives
are measured at fair value through profit or loss and the
resulting exchange gains or losses are included in other
income. Assets / liabilities in this category are presented as
current assets / current liabilities if they are either held for
trading or are expected to be realized within 12 months after
the Balance Sheet date.
(ii) Cash flow hedge
The Company designates certain foreign exchange forward
and options contracts as cash flow hedges to mitigate the
risk of foreign exchange exposure on highly probable
forecast cash transactions.
When a derivative is designated as a cash flow hedge
instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive
income and accumulated in the cash flow hedge reserve. Any
ineffective portion of changes in the fair value of the derivative
is recognized immediately in the net profit in the Statement
of Profit and Loss. If the hedging instrument no longer meets
the criteria for hedge accounting, then hedge accounting is
discontinued prospectively. If the hedging instrument expires
or is sold, terminated or exercised, the cumulative gain or loss
on the hedging instrument recognized in cash flow hedge
reserve till the period the hedge was effective remains in cash
flow hedge reserve until the forecasted transaction occurs.
The cumulative gain or loss previously recognized in the
cash flow hedge reserve is transferred to the net profit in
the Statement of Profit and Loss upon the occurrence of the
related forecasted transaction. If the forecasted transaction is
no longer expected to occur, then the amount accumulated
in cash flow hedge reserve is reclassified to net profit in the
Statement of Profit and Loss.
2.10.3 Derecognition of financial instruments
The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognized from
the Company’s Balance Sheet when the obligation specified in
the contract is discharged or cancelled or expires.
2.10.4 Fair value of financial instruments
In determining the fair value of its financial instruments, the
Company uses a variety of methods and assumptions that
are based on market conditions and risks existing at each
reporting date. The methods used to determine fair value
include discounted cash flow analysis, available quoted
market prices and dealer quotes. All methods of assessing
fair value result in general approximation of value, and such
value may never actually be realized.
Refer to the table on ‘Financial instruments by category’
below for the disclosure on carrying value and fair value
of financial assets and liabilities. For financial assets and
liabilities maturing within one year from the Balance Sheet
date and which are not carried at fair value, the carrying
amounts approximate fair value due to the short maturity
of these instruments.
Infosys Annual Report 2020-21
Standalone financial statements | 181
2.10.5 Impairment
The Company recognizes loss allowances using the expected
credit loss (ECL) model for the financial assets and unbilled
revenues which are not fair valued through profit or loss.
Loss allowance for trade receivables and unbilled revenues
with no significant financing component is measured at an
amount equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount equal
to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required
to be recognized is recognized as an impairment gain or loss
in the Statement of Profit and Loss.
Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2021 are as follows:
Particulars
Amortized
cost
Assets
Cash and cash equivalents
(Refer to Note 2.8)
Investments (Refer to Note 2.4)
Preference securities, equity
instruments and others
Compulsorily convertible
debentures
Tax-free bonds and
government bonds
Liquid mutual fund units
Redeemable, non-convertible
debentures(1)
Non-convertible debentures
Government securities
Trade receivables
(Refer to Note 2.7)
Loans (Refer to Note 2.5)
Other financial assets
(Refer to Note 2.6)(4)
Total
Liabilities
Trade payables
(Refer to Note 2.13)
Lease liabilities (Refer to Note 2.3)
Other financial liabilities
(Refer to Note 2.12)
Total
17,612
–
–
2,144
–
536
–
–
16,394
259
5,661
42,606
1,562
3,854
6,873
12,289
Financial assets /
liabilities at fair value
through profit or loss
Designated
upon initial
recognition
Mandatory
Financial assets / liabilities at
fair value through OCI
Mandatory
Equity
instruments
designated upon
initial recognition
in ` crore
Total fair
value
Total
carrying
value
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
42
7
–
1,326
–
–
–
–
–
–
–
17,612
17,612
167
–
–
–
–
–
–
–
–
–
–
–
–
209
209
7
7
2,144
1,326
2,527(2)
1,326
–
4,380
5,302
536
4,380
5,302
536
4,380
5,302
–
–
16,394
259
16,394
259
153
1,528
–
167
25
9,707
5,839
54,008
5,747(3)
54,299
–
–
14
14
–
–
–
–
–
–
1,562
3,854
1,562
3,854
–
–
6,887
12,303
6,887
12,303
(1) The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.
(2) On account of fair value changes including interest accrued
(3) Excludes interest accrued on tax-free bonds and government bonds carried at amortized cost of ` 92 crore
(4) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
182 | Standalone financial statements
Infosys Annual Report 2020-21
The carrying value and fair value of financial instruments by categories as at March 31, 2020 were as follows:
Particulars
Amortized
cost
Assets
Cash and cash equivalents
(Refer to Note 2.8)
Investments (Refer to Note 2.4)
Preference securities, equity
instruments and others
Tax-free bonds and government
bonds
Liquid mutual fund units
Redeemable, non-convertible
debentures(1)
Fixed maturity plan securities
Certificates of deposit
Government securities
Non-convertible debentures
Trade receivables
(Refer to Note 2.7)
Loans (Refer to Note 2.5)
Other financial assets
(Refer to Note 2.6)(4)
Total
Liabilities
Trade payables (Refer to Note 2.13)
Lease liabilities (Refer to Note 2.3)
Other financial liabilities
(Refer to Note 2.12)
Total
13,562
–
1,838
–
1,159
–
–
–
–
15,459
605
4,992
37,615
1,529
3,165
5,844
10,538
Financial assets /
liabilities at fair value
through profit or loss
Designated
upon initial
recognition
Mandatory
Financial assets / liabilities at
fair value through OCI
Mandatory
Equity
instruments
designated upon
initial recognition
Total
carrying
value
in ` crore
Total
fair
value
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30
–
2,019
–
428
–
–
–
–
–
10
2,487
–
–
592
592
–
–
13,562 13,562
103
–
–
–
–
–
–
–
–
–
–
–
–
133
133
1,838 2,135(2)
2,019
2,019
–
–
886
664
1,924
1,159
428
886
664
1,924
1,159
428
886
664
1,924
–
–
15,459 15,459
605
605
–
103
9
3,483
5,011
4,929(3)
43,688 43,903
–
–
–
–
–
–
1,529
3,165
1,529
3,165
20
20
6,456
6,456
11,150 11,150
(1) The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.
(2) On account of fair value changes including interest accrued
(3) Excludes interest accrued on tax-free bonds and government bonds carried at amortized cost of ` 82 crore
(4) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
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
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The fair value hierarchy of assets and liabilities as at March 31, 2021 is as follows:
Particulars
March 31,
2021
in ` crore
Fair value measurement at end
of the year using
Level 2
Level 1
Level 3
Assets
Investments in tax-free bonds (Refer to Note 2.4)
Investments in government bonds (Refer to Note 2.4)
Investments in liquid mutual fund units (Refer to Note 2.4)
Investments in non-convertible debentures (Refer to Note 2.4)
Investments in government securities (Refer to Note 2.4)
Investments in equity instruments (Refer to Note 2.4)
Investments in preference securities (Refer to Note 2.4)
Investments in compulsorily convertible debentures (Refer to Note 2.4)
Infosys Annual Report 2020-21
2,513
14
1,326
4,380
5,302
2
165
7
1,352
14
1,326
4,085
5,302
–
–
–
1,161
–
–
295
–
–
–
–
–
–
–
–
–
2
165
7
Standalone financial statements | 183
Particulars
Other investments (Refer to Note 2.4)
Derivative financial instruments – gain on outstanding foreign exchange
forward and options contracts (Refer to Note 2.6)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange
forward and options contracts (Refer to Note 2.12)
Liability towards contingent consideration (Refer to Note 2.12)(1)
March 31,
2021
42
Fair value measurement at end
of the year using
Level 2
–
Level 1
–
Level 3
42
178
–
178
9
5
–
–
9
–
–
–
5
During the year ended March 31, 2021, tax-free bonds and non-convertible debentures of ` 107 crore were transferred
from Level 2 to Level 1 of fair value hierarchy since these were valued based on quoted price. Further, tax-free bonds and
non-convertible debentures of ` 1,177 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were
valued based on market observable inputs.
The fair value hierarchy of assets and liabilities as at March 31, 2020 was as follows:
Particulars
March 31,
2020
in ` crore
Fair value measurement at end
of the year using
Level 2
Level 3
Level 1
Assets
Investments in government securities (Refer to Note 2.4)
Investments in tax-free bonds (Refer to Note 2.4)
Investments in liquid mutual fund units (Refer to Note 2.4)
Investments in government bonds (Refer to Note 2.4)
Investments in fixed maturity plan securities (Refer to Note 2.4)
Investments in certificates of deposit (Refer to Note 2.4)
Investments in non-convertible debentures (Refer to Note 2.4)
Investments in equity instruments (Refer to Note 2.4)
Investments in preference securities (Refer to Note 2.4)
Other investments (Refer to Note 2.4)
Derivative financial instruments – gain on outstanding foreign exchange
forward and options contracts (Refer to Note 2.6)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange
forward and options contracts (Refer to Note 2.12)
Liability towards contingent consideration (Refer to Note 2.12)(1)
(1) Discount rate pertaining to contingent consideration is 14%.
664
2,122
2,019
13
428
886
1,924
2
101
30
19
461
151
664
1,960
2,019
13
–
–
1,558
–
–
–
–
–
–
–
162
–
–
428
886
366
–
–
–
–
–
–
–
–
–
–
2
101
30
19
–
461
–
–
151
During the year ended March 31, 2020, tax-free bonds and
non-convertible debentures of ` 518 crore were transferred
from Level 2 to Level 1 of fair value hierarchy, since these were
valued based on quoted price, and tax-free bonds of ` 50 crore
were transferred from Level 1 to Level 2 of fair value hierarchy,
since these were valued based on market observable inputs.
A one percentage point change in the unobservable inputs
used in fair valuation of Level 3 assets and liabilities does not
have a significant impact in its value.
Majority of investments of the Company are fair valued based
on Level 1 or Level 2 inputs. These investments primarily
include investment in liquid mutual fund units, fixed maturity
plan securities, certificates of deposit, commercial papers,
quoted bonds issued by government and quasi-government
organizations and non-convertible debentures.
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 gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
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 United States and
elsewhere, and purchases from overseas suppliers in various
foreign currencies. The Company holds derivative financial
instruments such as foreign exchange forward and options
contracts to mitigate the risk of changes in exchange rates
on foreign currency exposures. The exchange rate between
184 | Standalone financial statements
Infosys Annual Report 2020-21
the Indian 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 foreign currency risk from financial assets and liabilities as at March 31, 2021 is as follows:
Particulars
US Dollar
Euro
Net financial assets
Net financial liabilities
Total
13,782
(5,959)
7,823
2,855
(1,058)
1,797
UK Pound
Sterling
1,153
(643)
510
Australian
Dollar
1,182
(787)
395
Other
currencies
1,280
(492)
788
The foreign currency risk from financial assets and liabilities as at March 31, 2020 was as follows:
Particulars
US Dollar
Euro
Net financial assets
Net financial liabilities
Total
13,217
(5,337)
7,880
2,523
(942)
1,581
UK Pound
Sterling
1,205
(673)
532
Australian
Dollar
785
(310)
475
Other
currencies
1,340
(512)
828
in ` crore
Total
20,252
(8,939)
11,313
in ` crore
Total
19,070
(7,774)
11,296
Sensitivity analysis between Indian Rupee and US Dollar
Particulars
Impact on the Company’s incremental operating margins
Year ended March 31,
2021
0.49%
2020
0.47%
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.
Derivative financial instruments
The Company holds derivative financial instruments such as foreign currency forward and options contracts to mitigate the
risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.
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 details in respect of outstanding foreign currency forward and options contracts are as follows:
Particulars
Derivatives designated as cash flow hedges
Options contracts
In Australian Dollar
In Euro
In UK Pound Sterling
Other derivatives
Forward contracts
In Canadian Dollar
In Chinese Yuan
In Euro
In New Zealand Dollar
In Norwegian Krone
In Singapore Dollar
In Swedish Krona
In Swiss Franc
In Philippine Peso
In US Dollar
In UK Pound Sterling
Options contracts
In Euro
In US Dollar
Total forward and options contracts
As at March 31,
2021
2020
In million
In ` crore
In million
In ` crore
92
165
35
33
66
151
16
25
21
–
26
800
1,012
15
65
403
512
1,415
353
194
73
1,295
82
21
116
–
204
121
7,392
151
557
2,946
15,432
110
120
21
21
–
171
16
40
80
50
–
–
925
45
–
555
507
993
196
117
–
1,415
72
29
425
37
–
–
6,990
421
–
4,196
15,398
Infosys Annual Report 2020-21
Standalone financial statements | 185
The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based
on the remaining period as at the Balance Sheet date:
Particulars
Not later than one month
Later than one month and
not later than three months
Later than three months and
not later than one year
in ` crore
As at March 31,
2021
5,028
2020
4,796
6,698
7,396
3,706
15,432
3,206
15,398
During the years ended March 31, 2021 and March 31,
2020 the Company has designated certain foreign exchange
forward and option contracts as cash flow hedges to mitigate
the risk of foreign exchange exposure on highly probable
forecast cash transactions. The related hedge transactions for
balance in cash flow hedge reserve as at March 31, 2021 are
expected to occur and reclassified to the Statement of Profit
and Loss within three months.
The Company determines the existence of an economic
relationship between the hedging instrument and hedged item
based on the currency, amount and timing of its forecasted
cash flows. Hedge effectiveness is determined at the inception
of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic
relationship exists between the hedged item and hedging
instrument, including whether the hedging instrument is
expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer
optimal but the risk management objective remains unchanged
and the hedge continues to qualify for hedge accounting,
the hedge relationship will be rebalanced by adjusting either
the volume of the hedging instrument or the volume of the
hedged item so that the hedge ratio aligns with the ratio used
for risk management purposes. Any hedge ineffectiveness is
calculated and accounted for in the Statement of Profit and
Loss at the time of the hedge relationship rebalancing.
The reconciliation of cash flow hedge reserve for the years
ended March 31, 2021 and March 31, 2020 is as follows:
Particulars
Gain / (loss)
Balance at the beginning of
the year
Gain / (loss) recognized in
other comprehensive income
during the year
Amount reclassified to profit
and loss during the year
Tax impact on above
Balance at the end of the year
in ` crore
Year ended March 31,
2021
2020
(15)
21
(126)
160
(9)
10
25
(73)
12
(15)
The Company offsets a financial asset and a financial liability
when it currently has a legally enforceable right to set off
the recognized amounts and the Company intends either to
settle on a net basis, or to realize the asset and settle the
liability simultaneously.
The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows:
Particulars
Gross amount of recognized financial asset / liability
Amount set off
Net amount presented in Balance Sheet
in ` crore
As at March 31, 2021
Derivative
financial asset
190
(12)
178
Derivative
financial liability
(21)
12
(9)
As at March 31, 2020
Derivative
financial asset
43
(24)
19
Derivative
financial liability
(485)
24
(461)
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 ` 16,394 crore and
` 15,459 crore as at March 31, 2021 and March 31, 2020,
respectively, and unbilled revenue amounting to ` 6,229
crore and ` 5,829 crore as at March 31, 2021 and March 31,
2020, respectively. Trade receivables and unbilled revenue
are typically unsecured and are derived from revenue from
customers primarily located in the US. Credit risk has always
been managed by the Company through credit approvals,
establishing credit limits and continuously monitoring the
creditworthiness of the customers to which the Company
grants credit terms in the normal course of business.
The Company uses the expected credit loss model to assess
any required allowances; and uses a provision matrix
to compute the expected credit loss allowance for trade
receivables and unbilled revenues. This matrix takes into
account credit reports and other related credit information
to the extent available.
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. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.
The details in respect of percentage of revenues generated
from the top customer and the top 10 customers are as follows:
in %
Particulars
Year ended March 31,
Revenue from top customer
Revenue from top 10 customers
2021
3.6
19.6
2020
3.5
20.6
186 | Standalone financial statements
Infosys Annual Report 2020-21
Credit risk exposure
The Company’s credit period generally ranges from 30-75 days.
The allowance for lifetime expected credit loss on customer
balances for the years ended March 31, 2021 and March 31,
2020 is ` 146 crore and ` 127 crore, respectively.
Movement in credit loss allowance
Particulars
Balance at the beginning
Impairment loss recognized /
(reversed)
Amounts written off
Translation differences
Balance at the end
in ` crore
Year ended March 31,
2021
580
146
(106)
(5)
615
2020
521
127
(89)
21
580
The gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
Credit risk on cash and cash equivalents is limited as
the Company generally invests in deposits with banks
and financial institutions with high ratings assigned by
international and domestic credit rating agencies. Ratings
are monitored periodically and the Company has considered
the latest available credit ratings as at the date of approval of
these financial statements.
Majority of investments of the Company are fair valued based
on Level 1 or Level 2 inputs. These investments primarily
include investment in liquid mutual fund units, fixed maturity
plan securities, certificates of deposit, commercial papers,
quoted bonds issued by government and quasi-government
organizations and non-convertible debentures. The Company
invests after considering counterparty risks based on multiple
criteria including Tier I capital, Capital Adequacy Ratio,
Credit Rating, Profitability, NPA levels and deposit base of
banks and financial institutions. These risks are monitored
regularly as per its risk management program.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not
be able to settle or meet its obligations on time.
The Company’s principal sources of liquidity are cash and
cash equivalents and the cash flow that is generated from
operations. The Company has no outstanding borrowings.
The Company believes that the working capital is sufficient
to meet its current requirements.
As at March 31, 2021, the Company had a working capital
of ` 30,660 crore including cash and cash equivalents of
` 17,612 crore and current investments of ` 2,037 crore.
As at March 31, 2020, the Company had a working capital
of ` 28,600 crore including cash and cash equivalents of
` 13,562 crore and current investments of ` 4,006 crore.
As at March 31, 2021 and March 31, 2020, the outstanding
compensated absences were ` 1,731 crore and ` 1,529
crore, respectively, which have been substantially funded.
Accordingly, no liquidity risk is perceived.
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2021 are as follows:
Particulars
Trade payables
Other financial liabilities (excluding liability towards contingent
consideration) (Refer to Note 2.12)
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.12)
Less than 1
year
1,562
6,705
5
1-2 years 2-4 years 4-7 years
in ` crore
Total
–
98
–
–
52
–
–
1,562
18
6,873
–
5
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2020 were as follows:
Particulars
Trade payables
Other financial liabilities (excluding liability towards contingent
consideration) (Refer to Note 2.12)
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.12)
Less than 1
year
1,529
5,827
152
1-2 years 2-4 years 4-7 years
–
12
–
–
5
–
–
–
–
in ` crore
Total
1,529
5,844
152
2.11 Equity
Accounting policy
Ordinary shares
Ordinary shares are classified as equity share capital.
Incremental costs directly attributable to the issuance of new
ordinary shares, share options and buyback are recognized as
a deduction from equity, net of any tax effects.
Description of reserves
Retained earnings
Retained earnings represent the amount of accumulated
earnings of the Company.
Securities premium
The amount received in excess of the par value of equity
shares has been classified as securities premium.
Infosys Annual Report 2020-21
Standalone financial statements | 187
Share options outstanding account
The share options outstanding account is used to record the
fair value of equity-settled share-based payment transactions
with employees. The amounts recorded in share options
outstanding account are transferred to securities premium
upon exercise of stock options and transferred to general
reserve on account of stock options not exercised by employees.
Special Economic Zone Re-investment reserve
The Special Economic Zone Re-investment Reserve has been
created out of the profit of the eligible SEZ unit in terms of
the provisions of Sec 10AA (1)(ii) of the Income-tax Act,
1961. The reserve should be utilized by the Company for
acquiring new plant and machinery for the purpose of its
business in terms of the provisions of the Sec 10AA (2) of the
Income-tax Act, 1961.
Capital redemption reserve
In accordance with Section 69 of the Companies Act, 2013,
the Company creates capital redemption reserve equal to the
nominal value of the shares bought back as an appropriation
from general reserve.
Other components of equity
Other components of equity consist of remeasurement of
net defined benefit liability / asset, equity instruments fair
valued through other comprehensive income, changes on
fair valuation of investments and changes in fair value of
derivatives designated as cash flow hedges, net of taxes.
Cash flow hedge reserve
When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive
income and accumulated in the cash flow hedging reserve.
The cumulative gain or loss previously recognized in the
cash flow hedging reserve is transferred to the Statement
of Profit and Loss upon the occurrence of the related
forecasted transaction.
2.11.1 Equity share capital
Particulars
in ` crore, except as otherwise stated
As at March 31,
2021
2020
Authorized
Equity shares, ` 5 par value
480,00,00,000 (480,00,00,000)
equity shares
Issued, subscribed and paid-up
Equity shares, ` 5 par value(1)
426,06,60,846 (425,89,92,566)
equity shares fully paid-up
2,400
2,400
2,130
2,129
2,130
2,129
(1) Refer to Note 2.21 for details of basic and diluted shares.
Forfeited shares amounted to ` 1,500 (` 1,500)
The Company has only one class of shares referred to as
equity shares having a par value of ` 5. Each holder of equity
shares is entitled to one vote per share. The equity shares
represented by American Depository Shares (ADSs) carry
similar rights to voting and dividends as the other equity
shares. Each ADS represents one underlying equity share.
In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive any of the remaining
assets of the Company in proportion to the number of
equity shares held by the shareholders, after distribution
of all preferential amounts. However, no such preferential
amounts exist currently.
For details of shares reserved for issue under the employee
stock option plan of the Company, refer to the note below.
In the period of five years immediately preceding March 31, 2021:
The Company has allotted 218,41,91,490 and 114,84,72,332
fully-paid-up shares of face value ` 5 each during the quarter
ended September 30, 2018 and June 30, 2015, respectively,
pursuant to bonus issue approved by the shareholders through
postal ballot. The bonus shares were issued by capitalization
of profits transferred from general reserve. Bonus share of
one equity share for every equity share held, and a bonus
issue, viz., a stock dividend of one ADS for every ADS held,
respectively, has been allotted. Consequently, the ratio of
equity shares underlying the ADSs held by an American
Depositary Receipt holder remains unchanged.
The bonus shares once allotted shall rank pari passu in all
respects and carry the same rights as the existing equity
shareholders and shall be entitled to participate in full, in
any dividend and other corporate action, recommended and
declared after the new equity shares are allotted.
Capital Allocation Policy and buyback
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over
a five-year period through a combination of semi-annual
dividends and / or share buyback and / or special dividends,
subject to applicable laws and requisite approvals, if any.
Free cash flow is defined as net cash provided by operating
activities less capital expenditure as per the Consolidated
Statement of Cash Flows prepared under IFRS. Dividend and
buyback include applicable taxes.
Proposed buyback announced in April 2021:
In line with the Capital Allocation Policy, the Board, at its
meeting held on April 14, 2021, approved the buyback of
equity shares, from the open market route through the Indian
stock exchanges, amounting to ` 9,200 crore (Maximum
Buyback Size, excluding buyback tax) at a price not exceeding
` 1,750 per share (Maximum Buyback Price), subject to
shareholders’ approval in the ensuing Annual General Meeting.
Buyback completed in August 2019:
Based on the postal ballot which concluded on March 12,
2019, the shareholders approved the buyback of equity shares
from the open market route through Indian stock exchanges
of up to ` 8,260 crore at a price not exceeding ` 800 per share.
The buyback was offered to all eligible equity shareholders
of the Company (other than the Promoters, the Promoter
Group and Persons in Control of the Company) under the
open market route through the stock exchange. The buyback
of equity shares through the stock exchange commenced on
March 20, 2019 and was completed on August 26, 2019.
During this buyback period, the Company had purchased
and extinguished a total of 11,05,19,266 equity shares from
the stock exchange at an average buyback price of ` 747 per
equity share comprising 2.53% of the pre-buyback paid-up
188 | Standalone financial statements
Infosys Annual Report 2020-21
equity share capital of the Company. The buyback resulted in
a cash outflow of ` 8,260 crore (excluding transaction costs).
The Company funded the buyback from its free reserves.
In accordance with Section 69 of the Companies Act, 2013,
as at March 31, 2020, the Company has created a Capital
Redemption Reserve of ` 55 crore equal to the nominal
value of the above shares bought back as an appropriation
from general reserve.
The Company’s objective when managing capital is to
safeguard its ability to continue as a going concern and to
maintain an optimal capital structure so as to maximize
shareholder value. In order to maintain or achieve an optimal
capital structure, the Company may adjust the amount of
dividend payment, return capital to shareholders, issue new
shares or buy back issued shares. As of March 31, 2021, the
Company has only one class of equity shares and has no
debt. Consequent to the above capital structure, there are no
externally-imposed capital requirements.
2.11.2 Dividend
The final dividend on shares is recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company’s Board of Directors. Income tax consequences
of dividends on financial instruments classified as equity
will be recognized according to where the entity originally
recognized those past transactions or events that generated
distributable profits.
The Company declares and pays dividends in Indian rupees.
The Finance Act 2020 has repealed the Dividend Distribution
Tax (DDT). Companies are now required to pay / distribute
dividend after deducting applicable taxes. The remittance of
dividends outside India is also subject to withholding tax
at applicable rates.
The amount of per share dividend recognized as distribution
to equity shareholders is as follows:
in `
Particulars
Year ended March 31,
Interim dividend for fiscal 2021
Final dividend for fiscal 2020
Interim dividend for fiscal 2020
Final dividend for fiscal 2019
2021
12.00
9.50
–
–
2020
–
–
8.00
10.50
During the year ended March 31, 2021, on account of the final
dividend for fiscal 2020 and interim dividend for fiscal 2021,
the Company has incurred a net cash outflow of ` 9,158 crore.
The Board of Directors, at its meeting on April 14, 2021,
recommended a final dividend of ` 15 per equity share for
the financial year ended March 31, 2021. This payment
is subject to the approval of shareholders in the Annual
General Meeting of the Company to be held on June 19,
2021 and, if approved, would result in a net cash outflow of
approximately ` 6,391 crore.
The details of shareholders holding more than 5% shares as at March 31, 2021 and March 31, 2020 are as follows:
Name of the shareholder
As at March 31, 2021
As at March 31, 2020
Number of shares
% held Number of shares
% held
Deutsche Bank Trust Company Americas (Depository of
ADRs – legal ownership)
Life Insurance Corporation of India
73,24,89,890
25,00,63,497
17.19
5.87
73,93,01,182
28,20,08,863
17.36
6.62
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2021 and March
31, 2020 is as follows:
Particulars
As at the beginning of the period
Add: Shares issued on exercise of employee stock options
Less: Shares bought back
As at the end of the period
in ` crore,except as stated otherwise
As at March 31, 2021
As at March 31, 2020
Number of shares
425,89,92,566
16,68,280
–
426,06,60,846
Amount Number of shares
435,62,79,444
5,80,388
9,78,67,266
425,89,92,566
2,129
1
–
2,130
Amount
2,178
–
49
2,129
2.11.3 Employee Stock Option Plan (ESOP):
Accounting policy
The Company recognizes compensation expense relating to
share-based payments in net profit based on estimated fair
values of the awards on the grant date. The estimated fair
value of awards is recognized as an expense in the Statement
of Profit and Loss on a straight-line basis over the requisite
service period for each separately vesting portion of the award
as if the award was in substance multiple awards with a
corresponding increase to share options outstanding account.
Infosys Expanded Stock Ownership Program
2019 (“the 2019 Plan”):
On June 22, 2019, pursuant to approval by the shareholders
in the Annual General Meeting, the Board has been authorized
to introduce, offer, issue and provide share-based incentives
to eligible employees of the Company and its subsidiaries
under the 2019 Plan. The maximum number of shares under
the 2019 Plan shall not exceed 5,00,00,000 equity shares.
To implement the 2019 Plan, up to 4,50,00,000 equity shares
may be issued by way of secondary acquisition of shares by
Infosys Expanded Stock Ownership Trust. The Restricted
Stock Units (RSUs) granted under the 2019 Plan shall vest
based on the achievement of defined annual performance
Infosys Annual Report 2020-21
Standalone financial statements | 189
parameters as determined by the administrator (the
nomination and remuneration committee). The performance
parameters will be based on a combination of relative total
shareholders return (TSR) against selected industry peers
and certain broader market domestic and global indices and
operating performance metrics of the Company as decided by
the administrator. Each of the above performance parameters
will be distinct for the purposes of calculation of quantity of
shares to vest based on performance. These instruments will
generally vest between a minimum of one to a maximum of
three years from the grant date.
2015 Stock Incentive Compensation Plan (“the 2015 Plan”):
On March 31, 2016, pursuant to the approval by the
shareholders through postal ballot, the Board was authorized
to introduce, offer, issue and allot share-based incentives to
eligible employees of the Company and its subsidiaries under
the 2015 Plan. The maximum number of shares under the
2015 Plan shall not exceed 2,40,38,883 equity shares (this
includes 1,12,23,576 equity shares which are held by the Trust
towards the 2011 RSU Plan ("the 2011 Plan") as at March 31,
2016). The Company expects to grant the instruments under
the 2015 Plan over the period of four to seven years. The plan
numbers mentioned above would further be adjusted for the
September 2018 bonus issue.
The equity-settled and cash-settled RSUs and stock options
would vest generally over a period of four years and shall be
exercisable within the period as approved by the nomination
and remuneration committee. The exercise price of the RSUs
will be equal to the par value of the shares and the exercise
price of the stock options would be the market price as
on the date of grant.
Controlled trust holds 1,55,14,732 and 1,82,39,356 shares
as at March 31, 2021 and March 31, 2020, respectively,
under the 2015 Plan. Out of these shares, 2,00,000 equity
shares each have been earmarked for welfare activities of the
employees as at March 31, 2021 and March 31, 2020.
The summary of grants during the years ended March 31, 2021 and March 31, 2020 is as follows:
Particulars
Equity-settled RSU
KMP
Employees other than KMP
Cash-settled RSU
KMP
Employees other than KMP
Total grants
Notes on grants to KMP
CEO & MD
Under the 2015 Plan: In accordance with the employee
agreement which has been approved by the shareholders, the
CEO is eligible to receive an annual grant of RSUs of fair value
` 3.25 crore, which will vest over time in three equal annual
installments upon the completion of each year of service from
the respective grant date. Accordingly, an annual time-based
grant of 25,775 RSUs was made effective February 1, 2021
for fiscal 2021. Though the annual time-based grants for the
remaining employment term ending on March 31, 2023 have
not been granted as of March 31, 2021, since the service
commencement date precedes the grant date, the Company
has recorded employment stock compensation expense in
accordance with Ind AS 102, Share-based Payment.
The Board, on April 20, 2020, based on the recommendations
of the nomination and remuneration committee, in accordance
with the terms of his employment agreement, approved the
grant of performance-based RSUs of fair value of ` 13 crore for
fiscal 2021 under the 2015 Plan. These RSUs will vest in line
with the employment agreement, based on the achievement
of certain performance targets. Accordingly, 1,92,964
performance-based RSUs were granted effective May 2, 2020.
2019 Plan
Year ended March 31,
2015 Plan
Year ended March 31,
2021
2020
2021
2020
3,13,808
12,82,600
15,96,408
3,56,793
17,34,500
20,91,293
4,57,151
22,03,460
26,60,611
5,07,896
33,46,280
38,54,176
–
–
–
15,96,408
–
–
–
20,91,293
–
1,15,250
1,15,250
27,75,861
1,80,400
4,75,740
6,56,140
45,10,316
Under the 2019 Plan: The Board, on April 20, 2020, based on
the recommendations of the nomination and remuneration
committee, approved a performance-based grant of RSUs
amounting to ` 10 crore for fiscal 2021 under the 2019 Plan.
These RSUs will vest in line with the employment agreement,
based on the achievement of certain performance targets.
Accordingly, 1,48,434 performance-based RSUs were granted
effective May 2, 2020.
COO and Whole-time director
Under the 2019 Plan: The Board, on April 20, 2020, based on
the recommendations of the nomination and remuneration
committee, approved a performance-based grant of RSUs
amounting to ` 4 crore for fiscal 2021 under the 2019 Plan.
These RSUs will vest in line with the employment agreement,
based on the achievement of certain performance targets.
Accordingly, 59,374 performance-based RSUs were granted
effective May 2, 2020.
Other KMP
Under the 2015 Plan: On April 20, 2020, based on the
recommendations of the nomination and remuneration
committee, in accordance with the employment agreement,
the Board approved performance-based grants of 11,133 RSUs
to other KMP under the 2015 Plan. The grants were made
190 | Standalone financial statements
Infosys Annual Report 2020-21
effective May 2, 2020. The performance-based RSUs will vest
over three years based on certain performance targets.
On January 13, 2021, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grants of 13,879 RSUs to other KMP under the
2015 Plan. The grants were made effective February 1, 2021.
These RSUs will vest over four years.
On March 30, 2021, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grants of 2,13,400 RSUs to other KMP under the
2015 Plan. The grants were made effective March 31, 2021.
These RSUs will vest over four years.
Under the 2019 Plan: On March 30, 2021, based on the
recommendations of the nomination and remuneration
committee, the Board approved performance-based grants
of 1,06,000 RSUs to other KMP under the 2019 Plan.
The grants were made effective March 31, 2021. These RSUs
will vest over three years based on the achievement of certain
performance targets.
Break-up of employee stock compensation expense
Particulars
Granted to:
KMP
Employees other than KMP
Total(1)
(1) Cash-settled stock compensation
expense included in the above
in ` crore
Year ended March 31,
2021
2020
76
221
297
71
56
170
226
10
Share-based payment arrangements that were modified
during the year ended March 31, 2020:
During the year ended March 31, 2020, the Company issued
stock appreciation rights as replacement for outstanding
ADS-settled RSU and ESOP awards. The replacement was
pursuant to SEBI Circular ‘Framework for issue of Depository
Receipts’ dated October 10, 2019, which prohibited
companies to allot ADSs to Indian residents and non-resident
Indians. The awards were granted after necessary approvals
from the nomination and remuneration committee. All other
terms and conditions of the replaced awards remain the same
as the original award.
The replacement awards was accounted as a modification
and the fair value on the date of modification of ` 57 crore
is recognized as financial liability with a corresponding
adjustment to equity.
Share-based payment arrangements that were modified
during the year ended March 31, 2021:
During the year ended March 31, 2021, the Company issued
ADS-settled RSU and ESOP awards as replacement for
outstanding stock appreciation rights awards. The replacement
was pursuant to SEBI Circular ‘Framework for issue of
Depository Receipts – Clarifications’ dated December 18,
2020, which allows non-resident Indians to hold depository
receipts. The awards were granted after necessary approvals
from the nomination and remuneration committee. All other
terms and conditions of the replaced awards remain the same
as the original award.
The replacement awards were accounted as a modification
and the fair value on the date of modification of ` 85 crore
is recognized as equity with a corresponding adjustment to
financial liability.
The activity in the 2015 and 2019 Plans for equity-settled share-based payment transactions during the years ended March 31,
2021 and March 31, 2020 is as follows:
Particulars
2015 Plan: RSUs
Outstanding at the beginning
Granted
Exercised
Modification to equity-settled awards
Modification to cash-settled awards
Forfeited and expired
Outstanding at the end
Exercisable at the end
2015 Plan: ESOPs
Outstanding at the beginning
Granted
Exercised
Modification to equity-settled awards
Modification to cash-settled awards
Forfeited and expired
Outstanding at the end
Exercisable at the end
2019 Plan: RSU
Outstanding at the beginning
Granted
Year ended March 31, 2021
Year ended March 31, 2020
Shares arising
out of options
Weighted average
exercise price (`)
Shares arising
out of options
Weighted average
exercise price (`)
87,80,898
26,60,611
37,83,462
8,71,900
–
4,82,707
80,47,240
1,51,685
11,00,330
–
2,39,272
2,03,026
–
14,628
10,49,456
10,02,130
20,91,293
15,96,408
3.96
5.00
3.55
–
–
4.13
4.52
3.36
539
–
534
–
–
566
535
536
5.00
5.00
91,81,198
38,54,176
25,61,218
–
10,61,820
6,31,438
87,80,898
3,92,185
16,23,176
–
1,04,796
–
3,51,550
66,500
11,00,330
7,80,358
–
20,91,293
3.13
5.00
2.95
–
–
3.29
3.96
2.54
516
–
516
–
–
528
539
543
–
5.00
Infosys Annual Report 2020-21
Standalone financial statements | 191
Particulars
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
Year ended March 31, 2021
Year ended March 31, 2020
Shares arising
out of options
3,70,170
2,66,958
30,50,573
2,33,050
Weighted average
exercise price (`)
5.00
5.00
5.00
5.00
Shares arising
out of options
–
–
20,91,293
–
Weighted average
exercise price (`)
–
–
5.00
–
During the years ended March 31, 2021 and March 31, 2020, the weighted average share price of options exercised under the
2015 Plan on the date of exercise was ` 1,097 and ` 751, respectively.
During the years ended March 31, 2021 and March 31, 2020, the weighted average share price of options exercised under the
2019 Plan on the date of exercise was ` 1,166 and nil, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2021 is as follows:
Range of exercise
prices per share (`)
0-5 (RSU)
450-600 (ESOP)
No. of shares
arising out
of options
30,50,573
–
30,50,573
2019 Plan – Options outstanding
Weighted
average exercise
price (`)
5.00
–
5.00
Weighted average
remaining
contractual life
1.48
–
1.48
No. of shares
arising out
of options
80,47,240
10,49,456
90,96,696
2015 Plan – Options outstanding
Weighted
average exercise
price (`)
4.52
535
66
Weighted average
remaining
contractual life
1.67
1.83
1.69
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2020 was as follows:
Range of exercise
prices per share (`)
0-5 (RSU)
450-600 (ESOP)
2019 Plan – Options outstanding
No. of shares
arising out
of options
20,91,293
–
20,91,293
Weighted average
remaining
contractual life
1.76
–
1.76
Weighted
average exercise
price (`)
5.00
–
5.00
2015 Plan – Options outstanding
Weighted average
remaining
contractual life
1.59
3.48
1.80
Weighted
average exercise
price (`)
3.96
539
64
No. of shares
arising out
of options
87,80,898
11,00,330
98,81,228
As at March 31, 2021 and March 31, 2020, 3,87,088 and 17,56,521 cash-settled options were outstanding, respectively.
The carrying value of liability towards cash-settled, share-based payments was ` 7 crore and ` 48 crore as at March 31, 2021
and March 31, 2020, respectively.
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options
and Monte Carlo simulation model is used for TSR-based options.
The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected
term and the risk-free rate of interest. Expected volatility during the expected term of the options is based on historical volatility
of the observed market prices of the Company’s publicly-traded equity shares during a period equivalent to the expected term
of the options. Expected volatility of the comparative company have been modelled based on historical movements in the
market prices of their publicly-traded equity shares during a period equivalent to the expected term of the options. Correlation
coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group.
The fair value of each equity-settled award is estimated on the date of grant with the following assumptions:
Particulars
Weighted average share price (`) / ($ ADS)
Exercise price (`) / ($ADS)
Expected volatility (%)
Expected life of the option (years)
Expected dividends (%)
Risk-free interest rate (%)
Weighted average fair value as on grant date
(`) / ($ADS)
For options granted in
Fiscal 2021 –
Equity shares –
RSU
1,253
5.00
30-35
1-4
2-3
4-5
Fiscal 2021–
ADS – RSU
18.46
0.07
30-36
1-4
2-3
0.1-0.3
Fiscal 2020 –
Equity shares –
RSU
728
5.00
22-30
1-4
2-3
6-7
Fiscal 2020 –
ADS – RSU
10.52
0.07
22-26
1-4
2-3
1-3
1,124
16.19
607
7.84
The expected life of the RSU / ESOP is estimated based on the vesting term and contractual term of the RSU / ESOP as well as
expected exercise behavior of the employee who receives the RSU / ESOP.
192 | Standalone financial statements
Infosys Annual Report 2020-21
2.12 Other financial liabilities
Particulars
Non-current
Others
Compensated absences
Accrued compensation to employees(1)
Accrued expenses(1)(4)
Other payables(1)
Total non-current other financial liabilities
Current
Unpaid dividends(1)
Others
Accrued compensation to employees(1)
Accrued expenses(1)(4)
Retention monies(1)
Payable for acquisition of business – Contingent consideration(2)
Capital creditors(1)
Compensated absences
Other payables(1)(5)
Foreign currency forward and options contracts(2)(3)
Total current other financial liabilities
Total other financial liabilities
(1) Financial liability carried at amortized cost
(2) Financial liability carried at fair value through profit or loss
(3) Financial liability carried at fair value through other comprehensive income
(4) Includes dues to subsidiaries
(5) Includes dues to subsidiaries
Contingent consideration on undiscounted basis
in ` crore
As at March 31,
2021
2020
91
–
163
5
259
33
2,915
2,944
13
5
340
1,640
460
9
8,359
8,618
6,873
14
–
74
174
5
32
12
–
5
49
30
2,264
2,646
30
151
254
1,497
603
461
7,936
7,985
5,844
592
20
2
47
152
2.13 Trade payables
Particulars
Trade payables(1)
Total trade payables
(1) Includes dues to subsidiaries
in ` crore
As at March 31,
2021
1,562
1,562
400
2020
1,529
1,529
271
As at March 31, 2021 and March 31, 2020, there are no
outstanding dues to micro, small and medium enterprises.
There is no interest due or outstanding on the same. During
the years ended March 31, 2021 and March 31, 2020, an
amount of ` 13 crore and ` 11 crore, respectively, was paid
beyond the appointed day as defined in the Micro, Small and
Medium Enterprises Development Act, 2006.
2.14 Other liabilities
Particulars
Non-current
Accrued defined benefit plan
liability (Refer to Note 2.20)
Others
Deferred income
Deferred income –
government grants
Withholding taxes and others
Total non-current other
liabilities
Infosys Annual Report 2020-21
in ` crore
As at March 31,
2021
2020
274
185
16
14
345
649
22
–
–
207
Particulars
Current
Accrued defined benefit plan
liability
Unearned revenue
Client deposits
Others
Withholding taxes and others
Total current other liabilities
Total other liabilities
2.15 Provisions
As at March 31,
2021
2020
3
3,145
–
1,668
4,816
5,465
64
2,140
9
1,344
3,557
3,764
Accounting policy
A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
is reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks
specific to the liability.
a. Post-sales client support
The Company provides its clients with a fixed-period
post-sales support on its fixed-price, fixed-timeframe
contracts. Costs associated with such support services
are accrued at the time related revenues are recorded in
Standalone financial statements | 193
the Statement of Profit and Loss. The Company estimates
such costs based on historical experience and estimates are
reviewed on a periodic basis for any material changes in
assumptions and likelihood of occurrence.
b. Onerous contracts
Provisions for onerous contracts are recognized when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting
the future obligations under the contract. The provision is
measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established,
the Company recognizes any impairment loss on the assets
associated with that contract.
Provision for post-sales client support and others
Particulars
Current
Others
in ` crore
As at March 31,
2021
2020
Post-sales client support and
others
Total provisions
661
661
506
506
The movement in the provision for post-sales client support
and others is as follows:
Particulars
Balance at the beginning
Provision recognized / (reversed)
Provision utilized
Exchange difference
Balance at the end
in ` crore
Year ended
March 31,
2021
506
278
(103)
(20)
661
Provision for post-sales client support and others represents
cost associated with providing post-sales support services
which are accrued at the time of recognition of revenues and
are expected to be utilized over a period of one year.
2.16 Income taxes
Accounting policy
Income tax expense comprises current and deferred income
tax. Income tax expense is recognized in net profit in the
Statement of Profit and Loss except to the extent that it
relates to items recognized directly in equity, in which case
it is recognized in other comprehensive income. Current
income tax for current and prior periods is recognized at
the amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been
enacted or substantively enacted by the Balance Sheet date.
Deferred income tax assets and liabilities are recognized for all
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using
tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply
to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect
of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period
that includes the enactment or the substantive enactment date.
A deferred income tax asset is recognized to the extent that it
is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can
be utilized. Deferred income taxes are not provided on the
undistributed earnings of subsidiaries and branches where it
is expected that the earnings of the subsidiary or branch will
not be distributed in the foreseeable future. The Company
offsets current tax assets and current tax liabilities, where
it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis,
or to realize the asset and settle the liability simultaneously.
Tax benefits of deductions earned on exercise of employee
share options in excess of compensation charged to income
are credited to securities premium.
Income tax expense in the Statement of Profit and Loss comprises:
in ` crore
Particulars
Year ended March 31,
Current taxes
Deferred taxes
Income tax expense
2021
6,013
416
6,429
2020
5,235
(301)
4,934
Income tax expense for the years ended March 31, 2021 and
March 31, 2020 includes reversal (net of provisions) of ` 298
crore and ` 298 crore, respectively. These reversals pertains to
prior periods primarily on account of adjudication of certain
disputed matters in favor of the Company and upon filing of
return across various jurisdictions.
A reconciliation of the income tax provision to the amount
computed by applying the statutory income tax rate to the
income before income taxes is as follows:
Particulars
Profit before income taxes
Enacted tax rates in India
Computed expected tax expense
Tax effect due to non-taxable
income for Indian tax purposes
Overseas taxes
Tax provision (reversals)
Effect of exempt non-operating
income
Effect of non-deductible
expenses
Branch profit tax (net of credits)
Others
Income tax expense
in ` crore
Year ended March 31,
2021
24,477
34.94%
8,553
(2,468)
715
(298)
2020
20,477
34.94%
7,155
(2,637)
700
(298)
(166)
(49)
127
(27)
(7)
6,429
109
(35)
(11)
4,934
194 | Standalone financial statements
Infosys Annual Report 2020-21
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2021 and March 31, 2020 is 34.94% each.
The foreign tax expense is due to income taxes payable
overseas, principally in the United States. In India, the
Company has benefited from certain income tax incentives
that the Government of India had provided for export
of software from the units registered under the Special
Economic Zones (SEZs) Act, 2005. SEZ units, which began
the provision of services on or after April 1, 2005 are eligible
for a deduction of 100% of profits or gains derived from the
export of services for the first five years from the financial
year in which the unit commenced the provision of services
and 50% of such profits or gains for further five years. Up to
50% of such profits or gains is also available for a further
five years subject to creation of a Special Economic Zone
re-investment Reserve out of the profit for the eligible SEZ
units and utilization of such reserve by the Company for
acquiring new plant and machinery for the purpose of its
business as per the provisions of the Income-tax Act, 1961.
Entire deferred income tax for the years ended March 31,
2021 and March 31, 2020, relates to origination and reversal
of temporary differences.
Infosys is subject to a 15% Branch Profit Tax (BPT) in the
US to the extent its US branch’s net profit during the year is
greater than the increase in the net assets of the US branch
during the year, computed in accordance with the Internal
Revenue Code. As at March 31, 2021, Infosys’ US branch
net assets amounted to approximately ` 5,622 crore. As at
March 31, 2021, the Company has a deferred tax liability for
BPT of ` 145 crore (net of credits), as the Company estimates
that these branch profits are expected to be distributed in
the foreseeable future.
Deferred income tax liabilities have not been recognized on
temporary differences amounting to ` 9,670 crore and ` 8,386
crore as at March 31, 2021 and March 31, 2020, respectively,
associated with investments in subsidiaries and branches as
it is probable that the temporary differences will not reverse
in the foreseeable future.
Deferred income tax assets have not been recognized on
accumulated losses of ` 1,014 crore and ` 372 crore as at
March 31, 2021 and March 31, 2020, respectively, as it is
probable that future taxable profit will be not be available
against which the unused tax losses can be utilized in the
foreseeable future. Majority of the accumulated losses as at
March 31, 2021 will expire in financial years 2028 and 2029.
The details of income tax assets and income tax liabilities as
at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Income tax assets
Current income tax liabilities
Net current income tax asset /
(liability) at the end
in ` crore
As at March 31,
2021
5,287
1,737
2020
4,773
1,302
3,550
3,471
The gross movement in the current income tax asset / (liability) for the years ended March 31, 2021 and March 31, 2020 is as follows:
in ` crore
Particulars
Net current income tax asset / (liability) at the beginning
Income tax paid
Current income tax expense
Income tax benefit arising on exercise of stock options
Income tax on other comprehensive income
Tax impact on buyback expenses
Tax liability taken over from Kallidus
Translation differences
Net current income tax asset / (liability) at the end
As at March 31,
2021
3,471
6,061
(6,013)
45
1
–
(15)
–
3,550
2020
4,835
3,881
(5,235)
9
(21)
4
–
(2)
3,471
Particulars
The movement in gross deferred income tax assets and liabilities (before set-off) for the year ended March 31, 2021 is as follows:
in ` crore
Carrying value
as of March
31, 2021
Additions
through business
transfer
Changes
through profit
and loss
Carrying
value as of
April 1, 2020
Changes
through OCI
Translation
difference
Property, plant and
equipment
Lease liabilities
Trade receivables
Compensated absences
Post-sales client support
Derivative financial
instruments
Credits related to branch
profits
203
120
182
380
101
155
377
111
29
12
56
14
(201)
(11)
–
–
–
1
–
–
–
–
–
–
–
–
(8)
1
–
–
–
–
–
–
(11)
315
149
194
437
115
(54)
355
Infosys Annual Report 2020-21
Standalone financial statements | 195
Particulars
Intangibles through
business transfer
Branch profit tax
SEZ Re-investment Reserve
Others
Total deferred income tax
assets and liabilities
Carrying
value as of
April 1, 2020
Changes
through profit
and loss
Additions
through business
transfer
Changes
through OCI
Translation
difference
Carrying value
as of March
31, 2021
–
(555)
(82)
(8)
5
38
(531)
62
873
(416)
(14)
–
–
–
(13)
–
–
–
2
(6)
(1)
17
–
–
6
(10)
(500)
(613)
56
444
Particulars
The movement in gross deferred income tax assets and liabilities (before set-off) for the year ended March 31, 2020 was as follows:
in ` crore
Carrying value
as of March
31, 2020
Changes
through profit
and loss
Carrying
value as of
April 1, 2019
Impact on
account of
Ind AS 116
Changes
through OCI
Translation
difference
Reclassification
Property, plant
and equipment
Lease liabilities
Trade receivables
Compensated
absences
Post-sales client
support
Derivative
financial
instruments
Credits related to
branch profits
Intangibles
Branch profit tax
SEZ Re-
investment
Reserve
Others
Total deferred
income tax assets
and liabilities
223
–
164
349
95
(102)
340
–
(541)
–
45
(20)
70
18
31
6
245
13
–
22
(82)
(2)
–
–
–
–
–
12
–
–
–
–
(3)
–
48
–
–
–
–
–
–
–
–
(48)
573
301
9
–
–
2
–
–
–
–
–
–
–
–
–
2
–
–
–
–
–
–
24
–
(36)
–
–
203
120
182
380
101
155
377
–
(555)
(82)
(8)
(12)
873
The tax effects of significant temporary differences that resulted
in deferred income tax assets and liabilities are as follows:
Particulars
Deferred income tax assets after
set-off
Deferred income tax liabilities
after set-off
in ` crore
As at March 31,
2021
2020
955
1,429
(511)
(556)
Deferred tax assets and deferred tax liabilities have been offset
wherever the Company has a legally enforceable right to set
off current tax assets against current tax liabilities and where
the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority.
In assessing the reliability of deferred income tax assets, the
Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible.
The Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income, and
tax-planning strategies in making this assessment. Based on
the level of historical taxable income and projections for
future taxable income over the periods in which the deferred
income tax assets are deductible, the Management believes
that the Company will realize the benefits of those deductible
differences. The amount of the deferred income tax assets
considered realizable, however, could be reduced in the near
term if estimates of future taxable income during the carry
forward period are reduced.
2.17 Revenue from operations
Accounting policy
The Company derives revenues primarily from IT services
comprising software development and related services,
maintenance, consulting and package implementation, and
from licensing of software products and platforms across
the Company’s core and digital offerings (together called as
“software related services”). Contracts with customers are
either on a time-and-material, unit of work, fixed-price or
on a fixed-timeframe basis.
196 | Standalone financial statements
Infosys Annual Report 2020-21
Revenues from customer contracts are considered for
recognition and measurement when the contract has been
approved by the parties, in writing, to the contract, the parties
to the contract are committed to perform their respective
obligations under the contract, and the contract is legally
enforceable. Revenue is recognized upon transfer of control
of promised products or services (“performance obligations”)
to customers in an amount that reflects the consideration the
Company has received or expects to receive in exchange for
these products or services (“transaction price”). When there
is uncertainty as to collectability, revenue recognition is
postponed until such uncertainty is resolved.
The Company assesses the services promised in a contract
and identifies distinct performance obligations in the
contract. The Company allocates the transaction price to
each distinct performance obligation based on the relative
standalone selling price. The price that is regularly charged
for an item when sold separately is the best evidence of its
standalone selling price. In the absence of such evidence, the
primary method used to estimate standalone selling price is
the expected cost plus a margin, under which the Company
estimates the cost of satisfying the performance obligation and
then adds an appropriate margin based on similar services.
The Company’s contracts may include variable consideration
including rebates, volume discounts and penalties.
The Company includes variable consideration as part of
transaction price when there is a basis to reasonably estimate
the amount of the variable consideration and when it is
probable that a significant reversal of cumulative revenue
recognized will not occur when the uncertainty associated
with the variable consideration is resolved.
Revenue on time-and-material and unit-of-work-based
contracts, are recognized as the related services are performed.
Fixed-price maintenance revenue is recognized ratably either
on a straight-line basis when services are performed through
an indefinite number of repetitive acts over a specified period
or ratably using a percentage-of-completion method when
the pattern of benefits from the services rendered to the
customer and the Company’s costs to fulfil the contract is
not even through the period of contract because the services
are generally discrete in nature and not repetitive. Revenue
from other fixed-price, fixed-timeframe contracts, where the
performance obligations are satisfied over time is recognized
using the percentage-of-completion method. Efforts or costs
expended have been used to determine progress towards
completion as there is a direct relationship between input
and productivity. Progress towards completion is measured
as the ratio of costs or efforts incurred to date (representing
work performed) to the estimated total costs or efforts.
Estimates of transaction price and total costs or efforts are
continuously monitored over the term of the contracts and
are recognized in net profit in the period when these estimates
change or when the estimates are revised. Revenues and the
estimated total costs or efforts are subject to revision as the
contract progresses. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which
such losses become probable based on the estimated efforts
or costs to complete the contract.
The billing schedules agreed with customers include periodic
performance-based billing and / or milestone-based progress
billings. Revenues in excess of billing are classified as unbilled
revenue while billing in excess of revenues are classified as
contract liabilities (which we refer to as unearned revenues).
In arrangements for software development and related
services and maintenance services, by applying the revenue
recognition criteria for each distinct performance obligation,
the arrangements with customers generally meet the criteria
for considering software development and related services
as distinct performance obligations. For allocating the
transaction price, the Company measures the revenue in
respect of each performance obligation of a contract at its
relative standalone selling price. The price that is regularly
charged for an item when sold separately is the best evidence
of its standalone selling price. In cases where the Company is
unable to determine the standalone selling price, the Company
uses the expected cost plus margin approach in estimating
the standalone selling price. For software development and
related services, the performance obligations are satisfied
as and when the services are rendered since the customer
generally obtains control of the work as it progresses.
Revenue from licenses where the customer obtains a “right
to use” the licenses is recognized at the time the license is
made available to the customer. Revenue from licenses
where the customer obtains a “right to access” is recognized
over the access period.
Arrangements to deliver software products generally
have three elements: license, implementation and Annual
Technical Services (ATS).When implementation services are
provided in conjunction with the licensing arrangement and
the license and implementation have been identified as two
distinct separate performance obligations, the transaction
price for such contracts are allocated to each performance
obligation of the contract based on their relative standalone
selling prices. In the absence of standalone selling price for
implementation, the Company uses the expected cost plus
margin approach in estimating the standalone selling price.
Where the license is required to be substantially customized
as part of the implementation service the entire arrangement
fee for license and implementation is considered to be a single
performance obligation and the revenue is recognized using
the percentage-of-completion method as the implementation
is performed. Revenue from client training, support and
other services arising due to the sale of software products
is recognized as the performance obligations are satisfied.
ATS revenue is recognized ratably on a straight line basis over
the period in which the services are rendered.
Contracts with customers includes subcontractor services or
third-party vendor equipment or software in certain integrated
services arrangements. In these types of arrangements,
revenue from sales of third-party vendor products or services
is recorded net of costs when the Company is acting as an
agent between the customer and the vendor, and gross when
the Company is the principal for the transaction. In doing so,
the Company first evaluates whether it controls the goods or
service before it is transferred to the customer. The Company
considers whether it has the primary obligation to fulfil the
contract, inventory risk, pricing discretion and other factors
to determine whether it controls the goods or service and
therefore is acting as a principal or an agent.
Infosys Annual Report 2020-21
Standalone financial statements | 197
The incremental costs of obtaining a contract (i.e. costs
that would not have been incurred if the contract had not
been obtained) are recognized as an asset if the Company
expects to recover them. Certain eligible, non-recurring costs
(e.g. set-up or transition or transformation costs) that do not
represent a separate performance obligation are recognized
as an asset when such costs (a) relate directly to the contract;
(b) generate or enhance resources of the Company that
will be used in satisfying the performance obligation in the
future; and (c) are expected to be recovered. Such capitalized
contract costs are amortized over the respective contract life
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates.
The Company presents revenues net of indirect taxes in its
Statement of Profit and Loss.
Revenue from operations for the years ended March 31, 2021
and March 31, 2020 is as follows:
Particulars
Revenue from software services
Revenue from products and
platforms
Total revenue from operations
in ` crore
Year ended March 31,
2021
85,669
2020
78,809
243
85,912
238
79,047
The Company has evaluated the impact of COVID-19
resulting from (i) the possibility of constraints to render
services which may require revision of estimations of costs
to complete the contract because of additional efforts; (ii)
onerous obligations; (iii) penalties relating to breaches of
service-level agreements; and (iv) termination or deferment of
contracts by customers. The Company has concluded that the
impact of COVID-19 is not material based on these estimates.
Due to the nature of the pandemic, the Company continues
to monitor developments to identify significant uncertainties
relating to revenue in future periods.
Disaggregated revenue information
The table below presents disaggregated revenues from
contracts with customers by offerings for the years
ended March 31, 2021 and March 31, 2020, respectively.
The Company believes that this disaggregation best depicts
how the nature, amount, timing and uncertainty of our
revenues and cash flows are affected by industry, market and
other economic factors.
Particulars
Revenue by offerings
Core
Digital
Total
in ` crore
Year ended March 31,
2021
2020
43,810
42,102
85,912
47,533
31,514
79,047
Digital services
Digital services comprise service and solution offerings of the
Company that enable our clients to transform their businesses.
These include offerings that enhance customer experience,
leverage AI-based analytics and Big Data, engineer digital
products and IoT, modernize legacy technology systems,
migrate to cloud applications and implement advanced
cybersecurity systems.
Core services
Core services comprise traditional offerings of the Company
that have scaled and industrialized over a number of years.
These primarily include application management services,
proprietary application development services, independent
validation solutions, product engineering and management,
infrastructure management services, traditional enterprise
application implementation, support and integration services.
Products and platforms
The Company also derives revenues from the sale of
products and platforms including Infosys NIA®, an Artificial
Intelligence (AI) platform which applies next-generation AI
and machine learning.
The percentage of revenue from fixed-price contracts for
each of the years ended March 31, 2021 and March 31, 2020
is approximately 50%.
Trade receivables and contract balances
The timing of revenue recognition, billings and cash
collections results in receivables, unbilled revenue, and
unearned revenue on the Company’s Balance Sheet. Amounts
are billed as work progresses in accordance with agreed-upon
contractual terms, either at periodic intervals (e.g. monthly
or quarterly) or upon achievement of contractual milestones.
The Company’s receivables are rights to consideration that
are unconditional. Unbilled revenues comprising revenues
in excess of billings from time and material contracts and
fixed-price maintenance contracts are classified as financial
asset when the right to consideration is unconditional and is
due only after a passage of time.
Invoicing to the clients for other fixed-price contracts is based
on milestones as defined in the contract and therefore the
timing of revenue recognition is different from the timing
of invoicing to the customers. Therefore unbilled revenues
for other fixed-price contracts (contract asset) are classified
as non-financial asset because the right to consideration is
dependent on completion of contractual milestones.
Invoicing
as “unearned revenue”.
Trade receivables and unbilled revenues are presented net of
impairment in the Balance Sheet.
During the years ended March 31, 2021 and March 31, 2020,
the Company recognized revenue of ` 1,861 crore and ` 1,835
crore arising from opening unearned revenue as of April 1,
2020 and April 1, 2019, respectively. During the years ended
March 31, 2021 and March 31, 2020, ` 3,401 crore and ` 2,648
crore of unbilled revenue pertaining to other fixed-price and
fixed-timeframe contracts as of April 1, 2020 and April 1,
2019, respectively, has been reclassified to trade receivables
upon billing to customers on completion of milestones.
Remaining performance obligation disclosure
The remaining performance obligation disclosure provides the
aggregate amount of the transaction price yet to be recognized
as at the end of the reporting period and an explanation as
to when the Company expects to recognize these amounts
in revenue. Applying the practical expedient as given in
Ind AS 115, the Company has not disclosed the remaining
performance obligation-related disclosures for contracts
in excess of earnings are classified
198 | Standalone financial statements
Infosys Annual Report 2020-21
where the revenue recognized corresponds directly with the
value to the customer of the entity’s performance completed to
date, typically those contracts where invoicing is on time and
material including unit-of-work-based contracts. Remaining
performance obligation estimates are subject to change and
are affected by several factors, including terminations, changes
in the scope of contracts, periodic revalidations, adjustment
for revenue that has not materialized and adjustments for
currency fluctuations.
The aggregate value of performance obligations that are
completely or partially unsatisfied as at March 31, 2021, other
than those meeting the exclusion criteria mentioned above,
is ` 62,114 crore. Out of this, the Group expects to recognize
revenue of around 49% within the next one year and the
remaining thereafter. The aggregate value of performance
obligations that are completely or partially unsatisfied as at
March 31, 2020 is ` 48,958 crore. The contracts can generally
be terminated by the customers and typically includes an
enforceable termination penalty payable by them. Generally,
customers have not terminated contracts without cause.
Other comprehensive income, net of taxes, includes
translation differences on non-monetary financial assets
measured at fair value at the reporting date, such as equities
classified as financial instruments and measured at fair value
through other comprehensive income (FVOCI).
Government grant
The Company recognizes government grants only when
there is reasonable assurance that the conditions attached to
them will be complied with, and the grants will be received.
Government grants related to assets are treated as deferred
income and are recognized in the net profit in the Statement
of Profit and Loss on a systematic and rational basis over
the useful life of the asset. Government grants related to
revenue are recognized on a systematic basis in the net
profit in the Statement of Profit and Loss over the periods
necessary to match them with the related costs which they
are intended to compensate.
Other income for the years ended March 31, 2021 and
March 31, 2020 is as follows:
2.18 Other income, net
Particulars
2.18.1 Other income – Accounting Policy
Other income is comprised primarily of interest income,
dividend income, gain / loss on investments and exchange
gain / loss on forward and options contracts and on translation
of other assets and liabilities. Interest income is recognized
using the effective interest method. Dividend income is
recognized when the right to receive payment is established.
2.18.2 Foreign currency – Accounting policy
Functional currency
The functional currency of the Company is the Indian rupee.
These financial statements are presented in Indian rupees
(rounded off to crore; one crore equals ten million).
Transactions and translations
Foreign-currency denominated monetary assets and liabilities
are translated into the relevant functional currency at
exchange rates in effect at the Balance Sheet date. The gains or
losses resulting from such translations are recognized in the
Statement of Profit and Loss and reported within exchange
gains / (losses) on translation of assets and liabilities, net, except
when deferred in other comprehensive income as qualifying
cash flow hedges. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured
at fair value are translated at the exchange rate prevalent at
the date when the fair value was determined. Non-monetary
assets and non-monetary liabilities denominated in a foreign
currency and measured at historical cost are translated at
the exchange rate prevalent at the date of the transaction.
The related revenue and expense are recognized using
the same exchange rate.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue,
expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction.
Interest income on financial
assets carried at amortized cost
Tax-free bonds and
government bonds
Deposit with bank and others
Interest income on financial
assets fair valued through other
comprehensive income
Non-convertible debentures,
commercial paper, certificates
of deposit and government
securities
Income on investments carried
at fair value through other
comprehensive income
Income on investments carried
at fair value through profit or
loss
Dividend income on liquid
mutual funds
Gain / (loss) on liquid mutual
funds and other investments
Dividend received from
subsidiary
Interest income on income tax
refund
Exchange gains / (losses) on
foreign currency forward and
options contracts
Exchange gains / (losses)
on translation of assets and
liabilities
Miscellaneous income, net
Total other income
in ` crore
Year ended March 31,
2021
2020
143
951
138
1,080
372
282
80
41
8
70
321
2
188
–
–
250
558
(528)
(279)
243
2,467
1,056
191
2,700
Infosys Annual Report 2020-21
Standalone financial statements | 199
2.19 Expenses
Particulars
Employee benefit expenses
Salaries including bonus
Contribution to provident
and other funds
Share-based payments to
employees (Refer to Note 2.10)
Staff welfare
Cost of software packages and
others
For own use
Third-party items bought for
service delivery to clients
Other expenses
Power and fuel
Brand and marketing
Short-term leases
Rates and taxes
Repairs and maintenance
Consumables
Insurance
Provision for post-sales client
support and others
Commission to
non-whole-time directors
Impairment loss recognized
/ (reversed) under expected
credit loss model
Auditor’s remuneration
Statutory audit fees
Tax matters
Other services
Contributions towards
Corporate Social Responsibility
(CSR) (Refer to Note 2.24)
Towards CSR(1)
Proposed transfer of CSR
assets
Others
in ` crore
Year ended March 31,
2021
2020
43,605
41,159
1,146
938
297
131
45,179
226
111
42,434
942
814
1,116
2,058
99
288
24
192
1,050
22
108
47
6
842
1,656
176
441
37
143
1,198
32
72
3
8
152
137
5
–
1
7
–
2
412
360
283
54
2,743
–
171
2,787
(1) Includes ` 37 crore which the Company intends to spend in the future
relating to and in addition to the amounts spent in the prior years
2.20 Employee benefits
Accounting policy
2.20.1 Gratuity and pensions
The Company provides for gratuity, a defined benefit
retirement plan (“the Gratuity Plan”) covering eligible
Indian employees of Infosys. The Gratuity Plan provides a
lumpsum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount
based on the respective employee’s salary and the tenure of
employment with the Company. The Company contributes
gratuity liabilities to the Infosys Limited Employees’ Gratuity
Fund Trust (“the Trust”). Trustees administer contributions
made to the Trust and contributions are invested in a
scheme with the Life Insurance Corporation of India as
permitted by Indian law.
The Company operates defined benefit pension plan in
certain overseas jurisdictions, in accordance with the local
laws. These plans are managed by third-party fund managers.
The plans provide for periodic payouts after retirement or
for a lumpsum payment as set out in rules of each fund and
includes death and disability benefits.
Liabilities with regard to these defined benefit plans
are determined by actuarial valuation, performed by an
independent actuary, at each Balance Sheet date using the
projected unit credit method. These defined benefit plans
expose the Company to actuarial risks, such as longevity risk,
currency risk, interest rate risk and market risk.
The Company recognizes the net obligation of a defined benefit
plan in its Balance Sheet as an asset or liability. Gains and
losses through remeasurements of the net defined benefit
liability / (asset) are recognized in other comprehensive income
and are not reclassified to profit or loss in subsequent periods.
The actual return of the portfolio of plan assets, in excess of
the yields computed by applying the discount rate used to
measure the defined benefit obligation is recognized in other
comprehensive income. The effect of any plan amendments
is recognized in net profit in the Statement of Profit and Loss.
2.20.2 Provident fund
Eligible employees of Infosys receive benefits from a provident
fund, which is a defined benefit plan. Both the eligible
employee and the Company make monthly contributions to
the provident fund plan equal to a specified percentage of
the covered employee’s salary. The Company contributes a
portion to the Infosys Limited Employees’ Provident Fund
Trust. The trust invests in specific designated instruments as
permitted by Indian law. The remaining portion is contributed
to the government administered pension fund. The rate
at which the annual interest is payable to the beneficiaries
by the trust is being administered by the Government.
The Company has an obligation to make good the shortfall,
if any, between the return from the investments of the Trust
and the notified interest rate.
2.20.3 Superannuation
Certain employees of Infosys are participants in a defined
contribution plan. The Company has no further obligations
to the plan beyond its monthly contributions which are
periodically contributed to a trust fund, the corpus of which
is invested with the Life Insurance Corporation of India.
2.20.4 Compensated absences
The Company has a policy on compensated absences
which are both accumulating and non-accumulating in
nature. The expected cost of accumulating compensated
absences is determined by actuarial valuation performed
by an independent actuary at each Balance Sheet date using
projected unit credit method on the additional amount
expected to be paid / availed as a result of the unused
entitlement that has accumulated at the Balance Sheet date.
Expense on non-accumulating compensated absences is
recognized in the period in which the absences occur.
200 | Standalone financial statements
Infosys Annual Report 2020-21
The Code on Social Security, 2020 (“the Code”) relating to
employee benefits during employment and post-employment
benefits received Presidential assent in September 2020.
The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect
has not been notified. The Company will assess the impact of
the Code when it comes into effect and will record any related
impact in the period the Code becomes effective.
a. Gratuity and pension
The funded status majorly of the Indian gratuity plans and the
amounts recognized in the Company’s financial statements as
at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Change in benefit obligations
Benefit obligations at the
beginning
Service cost
Interest expense
Transfer of obligation
Remeasurements – Actuarial
(gains) / losses
Benefits paid
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the
beginning
Interest income
Transfer of assets
Remeasurements – Return on
plan assets excluding amounts
included in interest income
Contributions
Benefits paid
Fair value of plan assets at the
end
Funded status
in ` crore
As at March 31,
2021
2020
1,195
181
72
3
14
(83)
1,382
1,338
80
–
10
45
(82)
1,391
9
1,158
155
78
1
(78)
(119)
1,195
1,183
84
1
8
180
(118)
1,338
143
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Statement of Profit and
Loss under employee benefit expense are as follows:
Particulars
Service cost
Net interest on the net defined
benefit liability / asset
Net gratuity cost
in ` crore
Year ended March 31,
2020
155
2021
181
(8)
173
(6)
149
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Statement of Other
Comprehensive Income are as follows:
Particulars
Remeasurements of the net
defined benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets
excluding amounts included
in the net interest on the net
defined benefit liability / (asset)
Particulars
(Gain) / loss from change in
demographic assumptions
(Gain) / loss from change in
financial assumptions
(Gain) / loss from change in
experience assumptions
in ` crore
Year ended March 31,
2021
2020
14
(78)
(10)
4
(8)
(86)
in ` crore
Year ended March 31,
2021
2020
–
8
6
14
–
(61)
(17)
(78)
The weighted-average assumptions used to determine
benefit obligations as at March 31, 2021 and March 31,
2020 are as follows:
Particulars
Discount rate(1)
Weighted average rate of
increase in compensation
levels(2)
Weighted average duration of
defined benefit obligation(3)
As at March 31,
2021
6.1%
2020
6.2%
6.0%
6.0%
5.9 years
5.9 years
The weighted-average assumptions used to determine net
periodic benefit cost for the years ended March 31, 2021
and March 31, 2020 are as follows:
Particulars
Year ended March 31,
Discount rate
Weighted average rate of
increase in compensation levels
2021
6.2%
6.0%
2020
7.1%
8.0%
Assumptions regarding future mortality experience are set in
accordance with the published statistics by the Life Insurance
Corporation of India.
(1) In India, the market for high quality corporate bonds being not
developed, the yield of government bonds is considered as the discount
rate. The tenure has been considered taking into account the past long-
term trend of employees’ average remaining service life which reflects
the average estimated term of the post-employment benefit obligations.
(2) The average rate of increase in compensation levels is determined
by the Company, considering factors such as, the Company’s past
compensation revision trends and the Management’s estimate of future
salary increases.
(3) Attrition rate considered is the Management’s estimate based on the past
long-term trend of employee turnover in the Company.
Infosys Annual Report 2020-21
Standalone financial statements | 201
The funded status of the defined benefit provident fund plan
of Infosys and the amounts recognized in the Company’s
financial statements as at March 31, 2021 and March 31,
2020 are as follows:
Particulars
Change in benefit obligations
Benefit obligations at the
beginning
Service cost – employer
contribution
Employee contribution
Interest expense
Actuarial (gains) / loss
Benefits paid
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the
beginning
Interest income
Remeasurements – Return on
plan assets excluding amounts
included in interest income
Contributions
Benefits paid
Fair value of plan assets at the
end
Net liability
in ` crore
As at March 31,
2021
2020
7,366
5,989
423
816
606
(26)
(898)
8,287
407
857
561
216
(664)
7,366
7,117
596
5,989
561
125
1,200
(898)
8,140
(147)
(33)
1,264
(664)
7,117
(249)
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Statement of Other
Comprehensive Income are as follows:
Particulars
Remeasurements of the net
defined benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets
excluding amounts included
in the net interest on the net
defined benefit liability / (asset)
in ` crore
Year ended March 31,
2020
2021
(26)
216
(125)
(151)
33
249
Sensitivity of significant assumptions used for valuation of
defined benefit obligations is as follows:
Impact from percentage point
increase / decrease in
Discount rate
Weighted average rate of
increase in compensation level
in ` crore
As at March 31,
2021
78
70
2020
67
59
Sensitivity for significant actuarial assumptions is computed
by varying one actuarial assumption used for the valuation of
the defined benefit obligation by one percentage, keeping all
other actuarial assumptions constant. The sensitivity analysis
is based on a change in an assumption while holding all other
assumptions constant. In practice, this is not probable, and
changes in some of the assumptions may be correlated.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys Limited Employees’ Gratuity Fund
Trust. Trustees administer contributions made to the Trust.
As at March 31, 2021 and March 31, 2020, the plan assets
have been primarily invested in insurer-managed funds.
Actual return on assets for the years ended March 31, 2021 and
March 31, 2020 were ` 90 crore and ` 92 crore, respectively.
The Company expects to contribute ` 190 crore to the gratuity
trusts during the fiscal 2022.
Maturity profile of defined benefit obligation:
Within 1 year
1-2 year
2-3 year
3-4 year
4-5 year
5-10 years
in ` crore
194
200
213
233
245
1,219
The Company operates defined benefit pension plan in
certain overseas jurisdictions, in accordance with local laws.
As on March 31, 2021, the defined benefit obligation (DBO)
is ` 541 crore, fair value of plan assets is ` 434 crore, resulting
in recognition of a net DBO of ` 107 crore.
b. Superannuation
The Company contributed ` 242 crore and ` 223 crore to
the Superannuation Trust during the years ended March 31,
2021 and March 31, 2020, respectively, and the same has
been recognized in the Statement of Profit and Loss account
under the head employee benefit expense.
c. Provident fund
Infosys has an obligation to fund any shortfall on the yield
of the Trust’s investments over the administered interest rates
on an annual basis. These administered rates are determined
annually predominantly considering the social rather than
economic factors. The actuary has provided a valuation for
provident fund liabilities on the basis of guidance issued by
Actuarial Society of India.
202 | Standalone financial statements
Infosys Annual Report 2020-21
The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
approach are as follows:
(In %)
The provident fund plans are applicable only to employees
drawing a salary in Indian rupees.
Employee benefits cost include:
As at March 31,
Particulars
2021
2020
Salaries and bonus(1)
Defined contribution plans
Defined benefit plans
in ` crore
Year ended March 31,
2021
44,078
242
859
45,179
2020
41,521
223
690
42,434
Particulars
Government of India (GOI)
bond yield(1)
Expected rate of return on plan
assets
Remaining term to maturity of
portfolio
Expected guaranteed interest
rate
6.10
8.00
6.20
8.00
6 years
6 years
8.50
8.50
(1) In India, the market for high quality corporate bonds being not
developed, the yield of government bonds is considered as the
discount rate. The tenure has been considered taking into account
the past long-term trend of employees’ average remaining service life
which reflects the average estimated term of the post-employment
benefit obligations.
The break-up of the plan assets into various categories as at
March 31, 2021 and March 31, 2020 is as follows:
Particulars
Central and state government
bonds
Public-sector undertakings and
private-sector bonds
Others
in %
As at March 31,
2021
2020
54
40
6
49
48
3
The asset allocation for plan assets is determined based on
investment criteria prescribed under the relevant regulations.
As at March 31, 2021 the defined benefit obligation would
be affected by approximately ` 82 crore and ` 119 crore on
account of a 0.25% increase / decrease in the expected rate
of return on plan assets.
The Company contributed ` 568 crore and ` 541 crore to the
provident fund during the years ended March 31, 2021 and
March 31, 2020, respectively. The same has been recognized
in the net profit in the Statement of Profit and Loss under the
head employee benefit expense.
(1) Includes employee stock compensation expense of ` 297 crore and
` 226 crore for the years ended March 31, 2021 and March 31, 2020,
respectively (Refer to Note 2.11).
2.21 Reconciliation of basic and diluted shares
used in computing earning per share
Accounting policy
Basic earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the Company
by the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is
computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of
equity shares considered for deriving basic earnings per equity
share and also the weighted average number of equity shares
that could have been issued upon conversion of all dilutive
potential equity shares. The dilutive potential equity shares
are adjusted for the proceeds receivable had the equity shares
been actually issued at fair value (i.e. the average market value
of the outstanding equity shares). Dilutive potential equity
shares are deemed converted as at the beginning of the period,
unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented.
The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes
effected prior to the approval of the financial statements by
the Board of Directors.
A reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share is as follows:
Particulars
Basic earnings per equity share – weighted average number of equity shares
outstanding
Effect of dilutive common equivalent shares – share options outstanding
Diluted earnings per equity share – weighted average number of equity shares and
common equivalent shares outstanding
Year ended March 31,
2021
2020
425,94,38,950
36,53,564
427,70,30,249
27,78,577
426,30,92,514
427,98,08,826
For the years ended March 31, 2021 and March 31, 2020, no number of options to purchase equity shares had an
anti-dilutive effect.
Infosys Annual Report 2020-21
Standalone financial statements | 203
2.22 Contingent liabilities and commitments
Accounting policy
Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation
that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
in ` crore
Particulars
Contingent liabilities
Claims against the Company, not acknowledged as debts(1)
[Amount paid to statutory authorities ` 5,827 crore (` 5,229 crore)]
Commitments
Estimated amount of contracts remaining to be executed on capital contracts
and not provided for
(net of advances and deposits)(2)
Other commitments*
As at March 31,
2021
2020
3,753
3,410
609
10
1,305
15
* Uncalled capital pertaining to investments
(1) As at March 31, 2021, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ` 3,424 crore. The claims
against the Company majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961. These claims are on
account of multiple issues of disallowances such as disallowance of profits earned from STP units and SEZ units, disallowance of deductions in respect
of employment of new employees under Section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made
to associated enterprises held as liable for withholding of taxes. These matters are pending before various appellate authorities and the Management
including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company’s
financial position and results of operations.
Amount paid to statutory authorities against the above tax claims amounted to ` 5,817 crore.
(2) Capital contracts primarily comprises commitments for infrastructure facilities and computer equipment.
Legal proceedings
The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company’s
Management reasonably expects that these legal actions, when ultimately concluded and determined, will not have a material
and adverse effect on the Company’s results of operations or financial condition.
2.23 Related party transactions
List of related parties
Name of subsidiaries
Infosys Technologies (China) Co. Limited (Infosys China)
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)
Infosys Technologies (Sweden) AB. (Infosys Sweden)
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)(18)
Infosys Nova Holdings LLC. (Infosys Nova)
EdgeVerve Systems Limited (EdgeVerve)
Infosys Austria GmbH
Skava Systems Pvt. Ltd. (Skava Systems)(44)
Kallidus Inc, (Kallidus)(45)
Infosys Chile SpA
Infosys Arabia Limited(2)
Infosys Consulting Ltda.(1)
Infosys CIS LLC(1)(19)
Infosys Luxembourg S.a.r.l
Infosys Americas Inc., (Infosys Americas)
Infosys Technologies (Australia) Pty. Limited (Infosys Australia)(3)
Infosys Public Services, Inc. USA (Infosys Public Services)
Infosys Canada Public Services Inc(48)
Infosys BPM Limited
Infosys (Czech Republic) Limited s.r.o.(4)
Country
China
Mexico
Sweden
China
Brazil
US
India
Austria
India
US
Chile
Saudi Arabia
Brazil
Russia
Luxembourg
US
Australia
US
Canada
India
Czech Republic
Holdings as at
March 31,
2021
100%
100%
100%
100%
–
100%
100%
100%
100%
–
100%
70%
100%
–
100%
100%
–
100%
–
99.99%
99.99%
2020
100%
100%
100%
100%
–
100%
100%
100%
100%
100%
100%
70%
100%
–
100%
100%
–
100%
–
99.99%
99.99%
204 | Standalone financial statements
Infosys Annual Report 2020-21
Name of subsidiaries
Infosys Poland, Sp z.o.o(4)
Infosys McCamish Systems LLC(4)
Portland Group Pty Ltd(4)
Infosys BPO Americas LLC.(4)
Infosys Consulting Holding AG (Infosys Lodestone)
Infosys Management Consulting Pty Limited(5)
Infosys Consulting AG(5)
Infosys Consulting GmbH(5)
Infosys Consulting S.R.L.(1)
Infosys Consulting SAS(5)
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.)(5)(44)
Infosys Consulting (Shanghai) Co., Ltd.(5)(44)
Infy Consulting Company Ltd(5)
Infy Consulting B.V.(5)
Infosys Consulting Sp. z.o.o(24)(32)
Lodestone Management Consultants Portugal, Unipessoal, Lda.(5)(37)
Infosys Consulting S.R.L.(5)
Infosys Consulting (Belgium) NV(6)
Panaya Inc. (Panaya)
Panaya Ltd.(7)
Panaya GmbH(7)
Panaya Japan Co. Ltd(7)(23)
Brilliant Basics Holdings Limited (Brilliant Basics)
Brilliant Basics Limited(8)
Brilliant Basics (MENA) DMCC(8)(25)
Infosys Consulting Pte Limited (Infosys Singapore)(1)
Infosys Middle East FZ LLC(9)
Fluido Oy(9)
Fluido Sweden AB (Extero)(12)
Fluido Norway A/S(12)
Fluido Denmark A/S(12)
Fluido Slovakia s.r.o(12)
Fluido Newco AB(12)(39)
Infosys Compaz Pte. Ltd(10)
Infosys South Africa (Pty) Ltd(9)
WongDoody Holding Company Inc. (WongDoody)(1)
WDW Communications, Inc(11)
WongDoody, Inc(11)
HIPUS Co., Ltd (formerly Hitachi procurement Service Co. Ltd)(10)(13)
Stater N.V.(10)(14)
Stater Nederland B.V.(15)
Stater Duitsland B.V.(15)(41)
Stater XXL B.V.(15)
HypoCasso B.V.(15)
Stater Participations B.V.(15)
Stater Deutschland Verwaltungs-GmbH(16)(40)
Stater Deutschland GmbH & Co. KG(16)(40)
Stater Belgium N.V./S.A.(17)(42)
Outbox systems Inc. dba Simplus (US)(20)
Simplus North America Inc.(21)
Simplus ANZ Pty Ltd.(21)
Simplus Australia Pty Ltd(22)
Sqware Peg Digital Pty Ltd(22)
Simplus Philippines, Inc.(21)
Simplus Europe, Ltd.(21)
Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd)(12)(26)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd)(12)(26)
Country
Poland
US
Australia
US
Switzerland
Australia
Switzerland
Germany
Romania
France
Czech Republic
China
UK
The Netherlands
Poland
Portugal
Argentina
Belgium
US
Israel
Germany
Japan
UK
UK
Dubai
Singapore
Dubai
Finland
Sweden
Norway
Denmark
Slovakia
Sweden
Singapore
South Africa
US
US
US
Japan
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
Germany
Germany
Belgium
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Holdings as at
March 31,
2021
99.99%
99.99%
99.99%
99.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
–
–
100%
99.90%
100%
100%
100%
–
100%
100%
–
100%
100%
100%
100%
100%
100%
100%
–
60%
100%
100%
100%
100%
81%
75%
75%
–
75%
75%
75%
–
–
75%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2020
99.99%
99.99%
99.99%
99.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99.99%
100%
100%
99.90%
100%
100%
100%
–
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
100%
100%
100%
100%
81%
75%
75%
75%
75%
75%
75%
75%
75%
53.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Infosys Annual Report 2020-21
Standalone financial statements | 205
Name of subsidiaries
Infosys Limited Bulgaria EOOD (1)(27)
Kaleidoscope Animations, Inc.(30)
Kaleidoscope Prototyping LLC (31)
GuideVision, s.r.o.(28)
GuideVision Deutschland GmbH(29)
GuideVision Suomi Oy(29)
GuideVision Magyarország Kft(29)
GuideVision Polska SP.Z.O.O(29)
GuideVision UK Ltd(29)
Beringer Commerce Inc(33)
Beringer Capital Digital Group Inc(33)
Mediotype LLC(34)
Beringer Commerce Holdings LLC(34)
SureSource LLC(35)
Blue Acorn LLC(35)
Simply Commerce LLC(35)
iCiDIGITAL LLC(36)
Infosys BPM UK Limited(4)(38)
Infosys Turkey Bilgi Teknolojikeri Limited Sirketi(1)(43)
Infosys Germany Holding Gmbh(1)(46)(47)
Country
Bulgaria
US
US
Czech Republic
Germany
Finland
Hungary
Poland
UK
US
US
US
US
US
US
US
US
UK
Turkey
Germany
Holdings as at
March 31,
2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
–
–
100%
2020
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1) Wholly-owned subsidiary of Infosys Limited
(2) Majority-owned and controlled subsidiary of Infosys Limited
(3) Liquidated effective November 17, 2019
(4) Wholly-owned subsidiary of Infosys BPM Limited
(5) Wholly-owned subsidiary of Infosys Consulting Holding AG
(6) Majority-owned and controlled subsidiary of Infosys Consulting
Holding AG
(7) Wholly-owned subsidiary of Panaya Inc.
(8) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(9) Wholly-owned subsidiary of Infosys Consulting Pte Ltd
(10) Majority-owned and controlled subsidiary of Infosys Consulting Pte.
Ltd
(11) Wholly-owned subsidiary of WongDoody
(12) Wholly-owned subsidiary of Fluido Oy
(13) On April 1, 2019, Infosys Consulting Pte. Ltd, acquired 81%
voting interests in HIPUS Co., Ltd (formerly Hitachi Procurement
Service Co. Ltd).
(14) On May 23, 2019, Infosys Consulting Pte. Ltd, acquired 75% voting
interests in Stater N.V
(15) Wholly-owned subsidiary of Stater N.V
(16) Wholly-owned subsidiary of Stater Duitsland B.V.
(17) Majority-owned and controlled subsidiary of Stater Participations B.V.
(18) Effective October 1, 2019, merged into Infosys Consulting Ltda, a
wholly-owned subsidiary of Infosys Limited
(19) Liquidated effective January 28, 2021.
(20) On March 13, 2020, Infosys Nova Holdings LLC, acquired 100% of the
voting interests in Outbox Systems Inc.
(21) Wholly-owned subsidiary of Outbox Systems Inc.
(22) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(23) Liquidated effective October 31, 2019
(24) On February 20, 2020, Infosys Poland, Sp z.o.o, acquired 100% of the
voting interests in Infosys Consulting Sp. z.o.o from Infosys Consulting
Holding AG
(25) Liquidated effective July 17, 2020
(26) On June 1, 2020, Fluido Oy, acquired 100% of the voting interests in
Infosys Fluido UK,Ltd (formerly Simplus U.K., Ltd) and Infosys Fluido
Ireland, Ltd.(formerly Simplus Ireland, Ltd) from Simplus Europe, Ltd
(27) Incorporated effective September 11, 2020.
(28) On October 1, 2020, Infy Consulting Company Limited acquired 100%
of voting interests in GuideVision, s.r.o.
(29) Wholly-owned subsidiary of GuideVision, s.r.o.
(30) On October 9, 2020, Infosys Nova Holdings LLC, acquired 100% voting
interest in Kaleidoscope Animations, Inc.
(31) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(32) Merged with Infosys Poland Sp. z.o.o, effective October 21, 2020
(33) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned
subsidiary of Infosys Limited, acquired 100% voting interest in Beringer
Commerce Inc and Beringer Capital Digital Group Inc
(34) Wholly-owned subsidiary of Beringer Commerce Inc
(35) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(36) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(37) Liquidated effective November 19,2020
(38) Incorporated, effective December 9, 2020
(39) Merged into Fluido Sweden AB (Extero), effective December 18, 2020
(40) Merged into Stater Duitsland B.V., effective December 18, 2020
(41) Merged with Stater N.V., effective December 23, 2020
(42) On December 29, 2020, Stater Participation B.V acquired non-controlling
interest of 28.01% voting interests in Stater Belgium NV/SA
(43) Incorporated on December 30, 2020.
(44) Under liquidation
(45) Liquidated effective March 9, 2021
(46) Incorporated on March 23, 2021
(47) On March 28, 2021 Infosys Limited and Infosys Germany Holding
Gmbh registered Infosys Automotive and Mobility GmbH & Co. KG, a
partnership firm.
(48) Wholly-owned subsidiary of Infosys Public Services, Inc.
206 | Standalone financial statements
Infosys Annual Report 2020-21
Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
List of other related party
Particulars
Infosys Limited Employees’ Gratuity Fund Trust
Infosys Limited Employees’ Provident Fund Trust
Infosys Limited Employees’ Superannuation Fund Trust
Infosys Employees Welfare Trust
Infosys Employee Benefits Trust
Infosys Science Foundation
Infosys Expanded Stock Ownership Trust*
* Registered on May 15, 2019
Country
India
India
India
India
India
India
India
Nature of relationship
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
Controlled trust
Controlled trust
Controlled trust
Controlled trust
The Company’s material related party transactions during the years ended March 31, 2021 and March 31, 2020 and outstanding balances as at March 31,
2021 and March 31, 2020 are with its subsidiaries with whom the Company generally enters into transactions which are at arms length and in the
ordinary course of business.
Refer to Note 2.20 for information on transactions with post-employment benefit plans mentioned above.
List of key managerial personnel
Whole-time directors
• Salil Parekh, Chief Executive Officer and Managing Director
• U.B. Pravin Rao, Chief Operating Officer
Non-whole-time directors
• Nandan M. Nilekani
• Michael Gibbs
• Kiran Mazumdar-Shaw
• Roopa Kudva (retired as member of the Board
effective February 3, 2020)
• D.N. Prahlad (resigned as a member of the Board
effective April 20, 2020)
• D. Sundaram
• Uri Levine (appointed as an independent director
effective April 20, 2020)
• Bobby Parikh (appointed as an independent director
effective July 15, 2020)
• Dr. Punita Kumar-Sinha (retired as member of the Board
effective January 13, 2021)
• Chitra Nayak (appointed as an independent director
Mohit Joshi
President
Krishnamurthy Shankar
Group Head – Human Resources
effective March 25, 2021)
Executive officers
Nilanjan Roy
Chief Financial Officer
Ravi Kumar S.
President and Deputy Chief
Operating Officer
Inderpreet Sawhney
Group General Counsel and Chief
Compliance Officer
Company Secretary
A.G.S. Manikantha
The details of amounts due to or due from related parties as
at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Investment in debentures
EdgeVerve(1)
Trade receivables
EdgeVerve
Brilliant Basics Limited
Infosys China
Infosys Mexico
Infosys BPM
Infosys BPO Americas
Infy Consulting Company Ltd.
Infosys Public Services
Infosys Shanghai
Infosys Sweden
Infosys Fluido Oy
Infosys Consulting Ltda.
Infosys McCamish Systems LLC
Panaya Ltd
Infosys Compaz Pte. Ltd
Stater Nederland B.V.
Outbox System,Inc. dba
Simplus
Infosys Luxembourg S.à.r.l
Infosys Middle East FZ-LLC
Loans
Infosys China(2)
Infosys Consulting Pte Ltd(3)
Infosys Consulting S.R.L.(4)
Infosys Shanghai(5)
Prepaid expense and other
assets
Panaya Ltd.
GuideVision, s.r.o.
Other financial assets
Infosys BPM
in ` crore
As at March 31,
2021
2020
536
536
1,159
1,159
–
1
11
2
9
7
3
54
1
7
2
1
46
1
12
1
3
24
18
203
21
–
–
75
96
236
1
237
145
16
1
24
7
10
–
6
69
5
4
–
6
104
129
27
–
–
–
–
408
94
277
9
–
380
168
–
168
8
Infosys Annual Report 2020-21
Standalone financial statements | 207
Particulars
As at March 31,
Particulars
Panaya Ltd.
Infosys Austria GmbH
Infosys Consulting GmbH
Infosys China
Infosys Shanghai
Infy Consulting Company Ltd.
Infosys Management Consulting
Pty Limited
Infosys Consulting AG
Infosys Public Services
Kallidus
Infosys Consulting Ltda.
Skava Systems Pvt. Ltd.
Infy Consulting B.V.
Brilliant Basics Limited
Infosys Mexico
Infosys Fluido Oy
McCamish Systems LLC
Infosys Poland sp. z o o
Stater NV
Fluido Denmark A/S
EdgeVerve
Unbilled revenues
EdgeVerve
Kallidus
Stater Nederland B.V.
Trade payables
Infosys China
Infosys BPM
Infosys (Czech Republic)
Limited s.r.o.
Infosys Mexico
Infosys Sweden
Infosys Shanghai
Infosys Management Consulting
Pty Limited
Infosys Consulting Pte Ltd.
Infy Consulting Company Ltd.
Infosys consulting Ltda
Brilliant Basics Limited
Panaya Ltd.
Infosys Public Services
Kallidus
Portland Group Pty Ltd
Infosys Chile SpA
Infosys Compaz Pte. Ltd
Infosys Middle East FZ-LLC
Infosys Poland Sp Z.o.o
Infosys Consulting S.R.L.
Skava Systems Pvt. Ltd.
Infosys Fluido Oy
McCamish Systems LLC
Fluido Sweden AB
EdgeVerve
WongDoody, Inc.
WDW Communications, Inc.
2021
–
–
2
9
2
5
1
1
–
–
1
–
2
4
–
1
4
1
–
1
3
182
77
–
5
82
6
121
12
8
39
8
11
3
46
6
–
37
3
–
1
1
1
12
10
20
–
20
2
10
1
6
16
2020
3
3
1
8
1
3
1
1
1
2
3
1
1
2
2
–
1
1
21
1
–
65
45
8
31
84
6
60
10
4
3
5
8
3
93
5
8
12
3
5
2
3
1
12
3
10
1
–
1
–
–
–
13
Other financial liabilities
Infosys BPM
Brilliant Basics Limited
Fluido Oy
Fluido Sweden AB
Infosys Mexico
Infosys Consulting Ltda.
Infosys Compaz Pte. Ltd
Infosys China
Kallidus Inc.
Stater Nederland B.V.
Infosys Middle East FZ-LLC
Infosys Shanghai
HIPUS Co., Ltd
Outbox System,Inc. dba
Simplus
GuideVision, s.r.o.
Simplus Australia Pty Ltd
Simplus Philippines, Inc.
GuideVision Polska SP. Z O.O.
iCiDIGITAL LLC
Accrued expenses
Infosys BPM
As at March 31,
2021
400
2020
271
127
23
–
–
1
–
–
3
–
–
–
1
1
9
2
2
1
1
3
174
74
74
4
1
9
2
1
1
1
2
3
20
3
–
–
–
–
–
–
–
–
47
2
2
(1) At an interest rate of 7.138% per annum.
(2) Interest at the rate of 6% per annum repayable on demand
(3) Interest at the rate of 3% per annum repayable on demand
(4) Interest at the rate of 4% per annum repayable on demand
(5) Interest at the rate of 6% per annum repayable on demand.
Particulars
Infosys China
Brilliant Basics
Infosys Consulting Pte Ltd
Infosys Consulting Holding AG
Infosys Shanghai
Infosys Consulting S.R.L
Argentina
Infosys Consulting S.R.L.
Romania
in ` crore
Maximum amount
outstanding during the
Year ended March 31,
2021
471
–
1,214
–
79
–
2
2020
94
8
1,906
86
–
8
9
The details of the related parties transactions entered into
by the Company for the years ended March 31, 2021 and
March 31, 2020 are as follows:
Particulars
Capital transactions
Financing transactions
Equity
in ` crore
Year ended March 31,
2021
2020
Infosys Consulting Brazil
Wongdoody Holding
Company Inc
Infosys BPM(2)
154
140
21
–
9
1
208 | Standalone financial statements
Infosys Annual Report 2020-21
Particulars
Year ended March 31,
Particulars
Year ended March 31,
Infosys Nova Holdings LLC
Infosys Luxembourg S.a r.l.
Infosys Limited Bulgaria
Infosys Germany Holdings
Gmbh
Infosys China
Kallidus(3)
Preference shares
Infosys Consulting Pte
Ltd.(1)
Debentures (net of
repayment)
EdgeVerve
Loans (net of repayment)
Infosys China
Infosys Shanghai
Infosys Consulting Holding
AG
Brilliant Basics Holdings
Limited
Infosys Consulting Pte Ltd.
Infosys Consulting S.R.L.
Revenue transactions
Purchase of services
Infosys China
Infosys Management
Consulting Pty Limited
Infy Consulting Company
Limited
Infosys Consulting Pte Ltd.
Portland Group Pty Ltd
Infosys (Czech Republic)
Limited s.r.o.
Infosys BPM
Infosys Sweden
Infosys Shanghai
Infosys Mexico
Infosys Public Services
Panaya Ltd.
Infosys Brasil
Infosys Poland Sp Z.o.o
Infosys Consulting S.R.L.
Romania
Infosys Compaz Pte. Ltd
Infosys Consulting Ltda.
Kallidus
Brilliant Basics Limited
Infosys Chile SpA
Infosys Middle East FZ-LLC
Fluido Oy
Fluido Sweden AB (Extero)
McCamish Systems LLC
GuideVision, s.r.o.
GuideVision Polska SP.Z.O.O
HIPUS
2021
1,302
13
2
2
36
(151)
2020
1,335
–
–
–
–
–
–
1,379
1,318
2,803
(623)
(623)
(74)
76
(286)
(286)
–
–
–
(92)
(7)
(496)
8
(587)
76
Simplus Australia Pty Ltd
Simplus Philippines, Inc.
Outbox System,Inc. dba
Simplus
WDW Communications, Inc.
iCiDIGITAL LLC
WongDoody, Inc.
Purchase of shared services
including facilities and
personnel
Brilliant Basics Limited
Infosys BPM
WongDoody, Inc.
Infosys Public Services
Panaya Ltd.
Fluido Oy
Infosys Mexico
WDW Communications, Inc.
Interest income
Infosys China
Infosys Shanghai
Infosys Consulting Holding
AG
Infosys Consulting Pte Ltd.
EdgeVerve
Guarantee income
108
Infosys Consulting Pte Ltd.
1,030
34
22
Dividend income
Infosys BPM
98
733
48
74
67
35
102
10
30
22
6
14
26
95
14
83
12
18
6
–
–
–
Sale of services
Infosys China
Infosys Mexico
Infy Consulting Company
Limited
Infosys Brasil
Infosys BPO Americas
Infosys BPM
Infosys Fluido Oy
Infosys Luxembourg S.à.r.l
Infosys Middle East FZ-LLC
McCamish Systems LLC
Infosys Sweden
Infosys Shanghai
EdgeVerve
Infosys Public Services
Outbox System,Inc. dba
Simplus
Infosys Compaz Pte Ltd
Infosys Consulting Ltda.
Infosys Austria GmbH
Panaya Ltd.
Fluido Denmark A/S
Stater Nederland B.V.
–
(277)
(9)
(284)
63
129
965
25
33
122
1,321
47
87
72
32
131
–
66
182
3
41
22
53
15
61
30
31
7
2
1
1
2021
1
1
27
108
3
9
3,691
2020
–
–
–
61
–
–
2,824
3
3
6
3
1
–
6
14
36
3
4
–
3
61
71
1
1
321
321
25
26
22
–
22
110
2
24
24
160
41
2
668
682
3
72
9
–
1
–
54
5
3
–
–
–
1
–
12
21
6
–
1
39
107
153
1
1
1
1
23
34
44
3
–
121
–
–
–
320
11
5
597
749
–
64
5
2
–
1
45
Infosys Annual Report 2020-21
Standalone financial statements | 209
Particulars
Sale of shared services including
facilities and personnel
EdgeVerve
Panaya Ltd.
HIPUS
Infosys BPM
Brilliant Basics Limited
29
3
–
24
1
57
33
9
1
25
–
68
(1) Includes
loan conversion by way of
issuing redeemable
preference shares
(2) Represents purchase of non-controlling interest
(3) Represents funds received on liquidation of entity
Year ended March 31,
2021
1,947
2020
2,024
Transactions with key managerial personnel
The table below describes the compensation to key managerial
personnel which comprise directors and executive officers:
Particulars
Salaries and other employee
benefits to whole-time directors
and executive officers(1)(2)
Commission and other benefits
to non-executive / independent
directors
Total
in ` crore
Year ended March 31,
2021
2020
144
118
6
150
8
126
(1) Total employee stock compensation expense for the year ended
March 31, 2021 and March 31, 2020, includes a charge of ` 76 crore
and ` 56 crore respectively, towards key managerial personnel. (Refer
to Note 2.11)
(2) Does not include post-employment benefit based on actuarial valuation
as this is done for the Company as a whole.
2.24 Corporate social responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2%
of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.
The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare,
destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects.
A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized
through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
a) Gross amount required to be spent by the Company during the year is ` 372 crore.
b) Amount spent during the year on:
Particulars
1. Construction / acquisition of any asset
2. On purposes other than(1) above(1)
In cash
–
375
Yet to be
paid in cash
–
–
in ` crore
Total
–
375
(1) Includes ` 50 crore towards unspent CSR account as this pertains to ongoing projects
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the Company intends to
transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary (“the Subsidiary”) to be established in
accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining
the required approvals from regulatory authorities.
The carrying amount of the capital asset amounting to ` 283 crore has been impaired and included as CSR expense in the
standalone financial statements because the Company will not be able to recover the carrying amount of the asset from its
Subsidiary on account of prohibition on payment of dividend by this Subsidiary
2.25 Segment reporting
The Company publishes this financial statement along with the consolidated financial statements. In accordance with Ind AS
108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.
210 | Standalone financial statements
Infosys Annual Report 2020-21
2.26 Function-wise classification of Statement of Profit and Loss
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses
Total operating expenses
Operating profit
Interest expense
Other income, net
Profit before tax
Tax expense
Current tax
Deferred tax
Profit for the year
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
2.17
2.18
2.16
2.16
Note no.
Year ended March 31,
in ` crore
2021
85,912
55,541
30,371
3,676
4,559
8,235
22,136
126
2,467
24,477
6,013
416
18,048
148
120
25
(102)
191
18,239
2020
79,047
52,816
26,231
3,814
4,526
8,340
17,891
114
2,700
20,477
5,235
(301)
15,543
(184)
(31)
(36)
17
(234)
15,309
Fair value changes on derivatives designated as cash flow hedge, net
Fair value changes on investments, net
2.4
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer
and Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bengaluru
April 14, 2021
Infosys Annual Report 2020-21
Standalone financial statements | 211
Consolidated Financial Statements under Indian Accounting
Standards (Ind AS) for the year ended March 31, 2021
Index
A
Independent Auditor’s Report ....................................................................................................................................213
B Consolidated Balance Sheet .......................................................................................................................................221
C Consolidated Statement of Profit and Loss ...........................................................................................................223
D Consolidated Statement of Changes in Equity ......................................................................................................225
E Consolidated Statement of Cash Flows ...................................................................................................................230
F Overview and notes to the consolidated financial statements ......................................................................232
1. Overview
1.1 Company overview ............................................................................................................................................232
1.2 Basis of preparation of financial statements ..............................................................................................232
1.3 Basis of consolidation ........................................................................................................................................232
1.4 Use of estimates and judgments ....................................................................................................................232
1.5 Critical accounting estimates and judgments ............................................................................................232
2. Notes to the consolidated financial statements
2.1 Business combinations.......................................................................................................................................234
2.2 Property, plant and equipment .......................................................................................................................236
2.3 Goodwill and other intangible assets............................................................................................................238
2.4
Investments ...........................................................................................................................................................241
2.5 Loans ........................................................................................................................................................................246
2.6 Other financial assets .........................................................................................................................................246
2.7 Trade receivables .................................................................................................................................................246
2.8 Cash and cash equivalents ................................................................................................................................246
2.9 Other assets ...........................................................................................................................................................246
2.10 Financial instruments .........................................................................................................................................247
2.11 Equity .......................................................................................................................................................................254
2.12 Other financial liabilities ....................................................................................................................................259
2.13 Other liabilities .....................................................................................................................................................259
2.14 Provisions ...............................................................................................................................................................260
2.15 Income taxes .........................................................................................................................................................260
2.16 Revenue from operations ..................................................................................................................................263
2.17 Other income, net ................................................................................................................................................266
2.18 Expenses .................................................................................................................................................................267
2.19 Leases ......................................................................................................................................................................268
2.20 Employee benefits ...............................................................................................................................................269
2.21 Reconciliation of basic and diluted shares used in computing earnings per share .......................272
2.22 Contingent liabilities and commitments .....................................................................................................273
2.23 Related party transactions ................................................................................................................................273
2.24 Segment reporting ..............................................................................................................................................280
2.25 Function-wise classification of Consolidated Statement of Profit and Loss .....................................282
212 | Consolidated financial statements
Infosys Annual Report 2020-21
Independent Auditor’s Report
To The Members Of Infosys Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of INFOSYS LIMITED (the “Company”) and its
subsidiaries (the Company and its subsidiaries together referred to as the “Group”) which comprise the Consolidated Balance
Sheet as at March 31, 2021, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income),
the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year then ended, and
a summary of significant accounting policies and other explanatory information (hereinafter referred to as the “consolidated
financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated
financial statements, give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally
accepted in India, of the consolidated state of affairs of the Group as at March 31, 2021 and their consolidated profit, their
consolidated total comprehensive income, their consolidated changes in equity and their consolidated cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (“SA”s)
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the
ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and
the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for
our audit opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our report.
Infosys Annual Report 2020-21
Consolidated financial statements | 213
Sr. No. Key Audit Matter
1
Revenue recognition
The Group’s contracts with customers include contracts with multiple products and services. The group derives
revenues from IT services comprising software development and related services, maintenance, consulting
and package implementation, licensing of software products and platforms across the Group’s core and digital
offerings and business process management services. The Group assesses the services promised in a contract and
identifies distinct performance obligations in the contract. Identification of distinct performance obligations to
determine the deliverables and the ability of the customer to benefit independently from such deliverables involves
significant judgement.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party
vendor equipment or software. In these types of arrangements, revenue from sales of third-party vendor products
or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and
gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it controls
the products or service before it is transferred to the customer. The Group considers whether it has the primary
obligation to fulfil the contract, inventory risk, pricing discretion and other factors to determine whether it controls
the products or service and therefore, is acting as a principal or an agent.
Fixed price maintenance revenue is recognized ratably either on (1) a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from the services rendered to the customer and the Group’s costs to fulfil the contract
is not even through the period of contract because the services are generally discrete in nature and not repetitive.
The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the
contract and nature of the deliverables.
As certain contracts with customers involve management’s judgment in (1) identifying distinct performance
obligations, (2) determining whether the Group is acting as a principal or an agent and (3) whether fixed price
maintenance revenue is recognized on a straight-line basis or using the percentage of completion method, revenue
recognition from these judgments were identified as a key audit matter and required a higher extent of audit effort.
Refer Notes 1.5 and 2.16 to the consolidated financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to the (1) identification of distinct performance obligations, (2) determination of
whether the Group is acting as a principal or agent and (3) whether fixed price maintenance revenue is recognized
on a straight-line basis or using the percentage of completion method included the following, among others:
• We tested the effectiveness of controls relating to the (a) identification of distinct performance obligations, (b)
determination of whether the Group is acting as a principal or an agent and (c) determination of whether fixed
price maintenance revenue for certain contracts is recognized on a straight-line basis or using the percentage of
completion method.
• We selected a sample of contracts with customers and performed the following procedures:
– Obtained and read contract documents for each selection, including master service agreements, and other
documents that were part of the agreement.
– Identified significant terms and deliverables in the contract to assess management’s conclusions regarding the
(i) identification of distinct performance obligations (ii) whether the Group is acting as a principal or an agent
and (iii) whether fixed price maintenance revenue is recognized on a straight-line basis or using the percentage
of completion method
214 | Consolidated financial statements
Infosys Annual Report 2020-21
Sr. No. Key Audit Matter
2
Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from services rendered to the customer and the Group’s costs to fulfil the contract is
not even through the period of contract because the services are generally discrete in nature and not repetitive.
Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time
is recognized using the percentage-of-completion method.
Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended
to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been
used to measure progress towards completion as there is a direct relationship between input and productivity.
The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the
contract to reflect any changes based on the latest available information. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which such losses become probable based on the estimated
efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage
of completion method as a key audit matter as the estimation of total efforts or costs involves significant judgement
and is assessed throughout the period of the contract to reflect any changes based on the latest available information.
This estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs
incurred to-date and estimates of efforts or costs required to complete the remaining contract performance obligations
over the term of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort
to evaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.5 and 2.16 to the consolidated financial statements
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts
included the following, among others:
• We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application
controls pertaining to time recording, allocation and budgeting systems which prevents unauthorised changes to
recording of efforts incurred.
• We selected a sample of fixed price contracts with customers measured the using percentage-of-completion
method and performed the following:
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Group’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining
costs or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign
off from customers to identify possible delays in achieving milestones, which require changes in estimated costs or
efforts to complete the remaining performance obligations.
Infosys Annual Report 2020-21
Consolidated financial statements | 215
Information Other than the Financial Statements and Auditor’s Report thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the consolidated
financial statements, standalone financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and
in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Management’s Responsibilities for the Consolidated Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation and presentation of these consolidated financial statements that give a true and fair view of the consolidated
financial position, consolidated financial performance including other comprehensive income, consolidated changes in equity
and consolidated cash flows of the Group in accordance with the Ind AS and other accounting principles generally accepted in
India. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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, which have been used for the purpose of preparation of the consolidated financial statements
by the Directors of the Company, as aforesaid.
In preparing the consolidated financial statements, the respective Boards of Directors of the companies included in the Group
are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intend
to liquidate their respective entities or to cease operations, or have no realistic alternative but to do so.
The respective Boards of Directors of the companies included in the Group are also responsible for overseeing the financial
reporting process of the Group.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company and its subsidiary companies which are companies incorporated in India, has adequate internal
financial controls system in place and the operating effectiveness of such controls.
216 | Consolidated financial statements
Infosys Annual Report 2020-21
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express
an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of
the audit of the financial statements of such entities included in the consolidated financial statements of which we are the
independent auditors.
Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated
financial statements.
We communicate with those charged with governance of the Company and such other entities included in the consolidated
financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Infosys Annual Report 2020-21
Consolidated financial statements | 217
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
b)
were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive
Income, Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows dealt with by
this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under
section 133 of the Act.
d)
e) On the basis of the written representations received from the directors of the Company as on March 31, 2021 taken
on record by the Boards of Directors of the Company and the reports of the statutory auditors of its subsidiary
companies incorporated in India, none of the directors of the Group companies incorporated in India is disqualified
as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness
of such controls, refer to our separate Report in “Annexure A” which is based on the auditors’ reports of the Company
and its subsidiary companies incorporated in India. Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of internal financial controls over financial reporting of those companies.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to
the explanations given to us:
i) The consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group.
ii) Provision has been made in the consolidated financial statements, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company and its subsidiary companies incorporated in India.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 21039826AAAACO5071
218 | Consolidated financial statements
Infosys Annual Report 2020-21
Annexure “A” to the independent auditor’s report
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of Infosys Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31,
2021, we have audited the internal financial controls over financial reporting of Infosys Limited (hereinafter referred to as the
“Company”) and its subsidiary companies, which are companies incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Boards of Directors of the Company and its subsidiary companies, which are companies incorporated in India,
are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting
criteria established by the respective Companies considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India (the “ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the
respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company and its
subsidiary companies, which are companies incorporated in India, based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the
Institute of Chartered Accountants of India (“ICAI”) and the Standards on Auditing, prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls system over financial reporting of the Company and its subsidiary companies, which are
companies incorporated in India.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations of management and directors
of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
use, or disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Infosys Annual Report 2020-21
Consolidated financial statements | 219
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Company and its subsidiary
companies, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting were operating effectively as
at March 31, 2021, based on the criteria for internal financial control over financial reporting established by the respective
companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the ICAI.
Place: Mumbai
Date: April 14, 2021
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 21039826AAAACO5071
220 | Consolidated financial statements
Infosys Annual Report 2020-21
Consolidated Balance Sheet
Particulars
Assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Capital work-in-progress
Goodwill
Other intangible assets
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets (net)
Income tax assets (net)
Other non-current assets
Total non-current assets
Current assets
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Loans
Other financial assets
Income tax assets (net)
Other current assets
Total current assets
Total assets
Note no.
As at March 31,
2021
2020
in ` crore
2.2
2.19
2.3.1 and
2.1
2.3.2
2.4
2.5
2.6
2.15
2.15
2.9
2.4
2.7
2.8
2.5
2.6
2.15
2.9
12,560
4,794
922
6,079
2,072
11,863
32
1,141
1,098
5,811
1,281
47,653
2,342
19,294
24,714
159
6,410
–
7,814
60,733
1,08,386
12,435
4,168
954
5,286
1,900
4,137
21
737
1,744
5,384
1,426
38,192
4,655
18,487
18,649
239
5,457
7
7,082
54,576
92,768
Infosys Annual Report 2020-21
Consolidated financial statements | 221
Consolidated Balance Sheet (contd.)
Particulars
Equity and liabilities
Equity
Equity share capital
Other equity
Total equity attributable to equity holders of the Company
Non-controlling interests
Total equity
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities
Other financial liabilities
Deferred tax liabilities (net)
Other non-current liabilities
Total non-current liabilities
Current liabilities
Financial liabilities
Trade payables
Lease liabilities
Other financial liabilities
Other current liabilities
Provisions
Income tax liabilities (net)
Total current liabilities
Total equity and liabilities
Note no.
As at March 31,
2021
2020
2.11
2.19
2.12
2.15
2.13
2.19
2.12
2.13
2.14
2.15
2,124
74,227
76,351
431
76,782
4,587
1,514
875
763
7,739
2,645
738
11,390
6,233
713
2,146
23,865
1,08,386
2,122
63,328
65,450
394
65,844
4,014
807
968
279
6,068
2,852
619
10,481
4,842
572
1,490
20,856
92,768
The accompanying notes form an integral part of the Consolidated financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/ W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
222 | Consolidated financial statements
Infosys Annual Report 2020-21
Consolidated Statement of Profit and Loss
Particulars
Revenue from operations
Other income, net
Total income
Expenses
Employee benefit expenses
Cost of technical sub-contractors
Travel expenses
Cost of software packages and others
Communication expenses
Consultancy and professional charges
Depreciation and amortization expenses
Finance cost
Other expenses
Total expenses
Profit before tax
Tax expense
Current tax
Deferred tax
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
Exchange differences on translation of foreign operations
Fair value changes on investments, net
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the period
Profit attributable to
Owners of the Company
Non-controlling interests
Total comprehensive income attributable to
Owners of the Company
Non-controlling interests
in ` crore, except equity share and per equity share data
Note no.
Year ended March 31,
2.16
2.17
2.18
2.18
2.2, 2.3.2
& 2.19
2.18
2.15
2.15
2.20
2.4
2.10
2.4
2021
1,00,472
2,201
1,02,673
55,541
7,084
554
4,223
634
1,261
3,267
195
3,286
76,045
26,628
6,672
533
19,423
134
119
253
25
130
(102)
53
306
19,729
19,351
72
19,423
19,651
78
19,729
2020
90,791
2,803
93,594
50,887
6,714
2,710
2,703
528
1,326
2,893
170
3,656
71,587
22,007
5,775
(407)
16,639
(180)
(33)
(213)
(36)
378
22
364
151
16,790
16,594
45
16,639
16,732
58
16,790
Infosys Annual Report 2020-21
Consolidated financial statements | 223
Consolidated Statement of Profit and Loss (contd.)
Particulars
Earnings per equity share
Equity shares of par value ` 5 each
Basic (`)
Diluted (`)
Weighted average equity shares used in computing earnings per equity share
2.21
Basic
Diluted
The accompanying notes form an integral part of the Consolidated financial statements.
As per our report of even date attached
Note no.
Year ended March 31,
2021
2020
45.61
45.52
38.97
38.91
424,24,16,665 425,77,54,522
425,07,32,467 426,51,44,228
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/ W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
224 | Consolidated financial statements
Infosys Annual Report 2020-21
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2
2
5
Consolidated Statement of Changes in Equity for the year ended March 31, 2020
Particulars
Equity
share
capital
(2)
Reserves and surplus
Securities
premium
Retained
earnings
Capital
reserve
General
reserve
Share
options
outstanding
account
Special
Economic
Zone
Re-investment
Reserve(3)
Other equity
Other
reserves(4)
Capital
redemption
reserve
Equity
instruments
through other
comprehensive
income
Balance as at April 1, 2019
Impact on account
of adoption of
Ind AS 116(1)
Changes in
equity for the year ended
March 31, 2020
Profit for the period
Remeasurement of the
net defined benefit
liability / asset(1)
(Refer to Note 2.20.1)
Equity instruments
through
other comprehensive
income(1) (Refer
to Notes 2.4 and 2.15)
Fair value changes on
derivatives designated
as cash flow hedge(1)
(Refer to Note 2.10)
Exchange differences
on translation
of foreign operations
Fair value changes on
investments(1) (Refer
to Notes 2.4 and 2.15)
Total comprehensive
income for the period
Shares issued on
exercise of employee
stock options
(Refer to Note 2.11)
Employee stock
compensation expense
(Refer to Note 2.11)
Buyback of equity
shares (Refer to
Notes 2.11 and 2.12)
2,170
149
57,566
54
1,242
227
2,570
–
2,170
–
149
(40)
57,526
–
54
–
1,242
–
227
–
2,570
6
–
6
61
–
61
–
–
16,594
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
16,594
–
–
–
–
1
–
–
–
–
5
–
–
–
–
–
–
–
238
(49)
–
(4,717)
–
(1,494)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Other comprehensive income
Effective
portion of
cash flow
hedges
Exchange
differences
on translating
the financial
statements
of a foreign
operation
842
in ` crore
Total
equity
Non-
controlling
interest
Total
equity
attributable
to equity
holders of
the
Company
Other
items of
other
comprehensive
income / (loss)
21
(32)
64,948
58
65,006
–
842
–
21
–
(32)
(40)
64,908
–
58
(40)
64,966
–
–
–
16,594
45
16,639
–
–
(180)
(180)
–
(180)
72
–
72
–
–
(33)
–
–
–
(33)
–
(33)
–
–
–
–
(36)
365
–
–
–
–
–
(36)
–
(36)
365
13
378
22
22
–
22
(33)
365
(36)
(158)
16,732
58
16,790
–
–
–
–
–
–
–
–
–
–
–
6
–
6
238
–
238
–
(6,260)
–
(6,260)
Particulars
Equity
share
capital
(2)
Reserves and surplus
Securities
premium
Retained
earnings
Capital
reserve
General
reserve
Share
options
outstanding
account
Special
Economic
Zone
Re-investment
Reserve(3)
Other equity
Other
reserves(4)
Capital
redemption
reserve
Equity
instruments
through other
comprehensive
income
Other comprehensive income
Effective
portion of
cash flow
hedges
Exchange
differences
on translating
the financial
statements
of a foreign
operation
Non-
controlling
interest
Total
equity
Total
equity
attributable
to equity
holders of
the
Company
Other
items of
other
comprehensive
income / (loss)
–
–
–
–
(11)
–
–
–
Transaction costs
relating to buyback(1)
(Refer to Note 2.11)
Amount transferred
to capital redemption
reserve upon buyback
(Refer to Note 2.11)
Transfer on account of
exercise of stock options
(Refer to Note 2.11)
Transfer on account of
options not exercised
Effect of modification of
equity-settled share-based
payment awards to cash-
settled awards
(Refer to Note 2.11)
Income tax benefit
arising on exercise
of stock options
Financial liability under
option arrangements
(Refer to Note 2.1)
Dividends paid to non-
controlling interest
of subsidiary
Dividends (including
dividend distribution tax)
Non-controlling interests
on acquisition of
subsidiary
(Refer to Note 2.11)
Transfer to general reserve
Transferred to Special
Economic Zone
Re-investment Reserve
Transferred from Special
Economic Zone
Re-investment
Reserve on utilization
Balance as at
March 31, 2020
–
–
–
–
–
(50)
119
–
–
–
–
–
–
1
(119)
(1)
–
(9)
–
–
(48)
9
–
–
–
–
(598)
–
–
–
–
–
(9,517)
–
–
–
–
–
–
–
(1,470)
–
–
–
1,470
–
(2,580)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,580
–
–
1,080
–
–
–
(1,080)
2,122
282
56,309
54
1,158
297
4,070
–
–
–
–
–
–
–
–
–
–
–
–
6
50
–
–
–
–
–
–
–
–
–
–
–
111
–
–
–
–
–
–
–
–
–
–
–
–
–
39
–
–
–
(11)
–
(11)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(57)
–
(57)
9
–
9
–
(598)
–
(598)
–
–
–
–
–
–
–
(33)
(33)
(9,517)
–
(9,517)
–
–
–
311
–
311
–
–
–
–
–
–
1,207
(15)
(190)
65,450
394
65,844
2
2
6
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2
1
Consolidated Statement of Changes in Equity for the year ended March 31, 2021
Particulars
Equity
share
capital
(2)
Reserves and surplus
Other comprehensive income
Other equity
Securities
premium
Retained
earnings
Capital
reserve
General
reserve
Share
options
outstanding
account
Special
Economic
Zone
Re-investment
Reserve (3)
Other
reserves(4)
Capital
redemption
reserve
Equity
instruments
through
other
comprehensive
income
Exchange
differences
on
translating
the financial
statements
of a foreign
operation
Effective
portion of
cash flow
hedges
Other
items of
other
comprehensive
income / (loss)
in ` crore
Total equity
Non-
controlling
interest
Total equity
attributable
to equity
holders
of the
Company
Balance as at
April 1, 2020
Changes in equity
for the year ended
March 31, 2021
Profit for the period
Remeasurement
of the net defined
benefit liability /
asset(1)
(Refer to Note 2.20.1)
Equity instruments
through other
comprehensive
income(1) (Refer to
Notes 2.4 and 2.15)
Fair value changes
on derivatives
designated as cash
flow hedge(1)
(Refer to Note 2.10)
Exchange differences
on translation of
foreign operations
Fair value changes
on investments(1)
(Refer to Notes 2.4
and 2.15)
Total comprehensive
income for the
period
2,122
282
56,309
54
1,158
297
4,070
6
111
39
1207
(15)
(190)
65,450
394
65,844
–
–
19,351
–
–
–
–
–
–
–
–
–
–
19,351
72
19,423
–
–
–
–
–
–
–
–
–
–
–
–
134
134
–
134
–
–
–
–
–
–
–
–
–
119
–
–
–
119
–
119
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,351
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25
124
–
–
–
25
124
–
6
25
130
–
–
(102)
(102)
–
(102)
119
124
25
32
19,651
78
19,729
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C
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7
Particulars
Equity
share
capital
(2)
Reserves and surplus
Other comprehensive income
Other equity
Securities
premium
Retained
earnings
Capital
reserve
General
reserve
Share
options
outstanding
account
Special
Economic
Zone
Re-investment
Reserve (3)
Other
reserves(4)
Capital
redemption
reserve
Equity
instruments
through
other
comprehensive
income
Exchange
differences
on
translating
the financial
statements
of a foreign
operation
Effective
portion of
cash flow
hedges
Other
items of
other
comprehensive
income / (loss)
Total equity
Non-
controlling
interest
Total equity
attributable
to equity
holders
of the
Company
Shares issued on
exercise of employee
stock options
(Refer to Note 2.11)
Employee stock
compensation
expense
(Refer to Note 2.11)
Transfer on account
of exercise of stock
options
(Refer to Note 2.11)
Transfer on account
of options not
exercised
Effect of
modification
of share-based
payment awards
(Refer to Note 2.11)
Income tax benefit
arising on exercise
of stock options
Dividends paid to
non-controlling
interest of subsidiary
Payment towards
acquisition of
minority interest
Dividends
Transfer to general
reserve
2
13
–
–
–
–
–
–
–
–
–
–
–
253
–
–
–
260
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
45
–
–
–
–
–
–
–
(28)
(9,120)
–
(1,554)
–
–
–
–
3
–
–
–
–
–
1,554
(260)
(3)
85
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15
–
15
–
–
–
253
–
253
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
85
45
–
–
–
–
–
–
85
45
–
(20)
(20)
(28)
(9,120)
(21)
–
(49)
(9,120)
–
–
–
2
2
8
|
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d
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i
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a
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i
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s
t
a
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m
e
n
t
s
I
n
f
o
s
y
s
A
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a
l
R
e
p
o
r
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2
0
2
0
-
2
1
Particulars
Equity
share
capital
(2)
Reserves and surplus
Other comprehensive income
Other equity
Securities
premium
Retained
earnings
Capital
reserve
General
reserve
Share
options
outstanding
account
Special
Economic
Zone
Re-investment
Reserve (3)
Other
reserves(4)
Capital
redemption
reserve
Equity
instruments
through
other
comprehensive
income
Exchange
differences
on
translating
the financial
statements
of a foreign
operation
Effective
portion of
cash flow
hedges
Other
items of
other
comprehensive
income / (loss)
Total equity
Non-
controlling
interest
Total equity
attributable
to equity
holders
of the
Company
Transferred to
Special Economic
Zone Re-investment
Reserve
Transferred from
Special Economic
Zone Re-investment
Reserve on
utilization
Balance as at
March 31, 2021
–
–
(3,354)
–
–
–
3,354
–
–
–
–
–
–
–
–
–
–
–
1,039
–
–
–
(1,039)
2,124
600
62,643
54
2,715
372
6,385
–
6
–
111
–
–
158
1,331
–
10
–
–
–
–
(158)
76,351
431
76,782
(1) Net of tax
(2) Net of treasury shares
(3) The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of the Income-tax Act,1961. The reserve should be utilized
by the Group for acquiring new plant and machinery for the purpose of its business in terms of Sec 10AA(2) of the Income-tax Act, 1961.
(4) Under the Swiss Code of Obligation, a few subsidiaries of Infosys Lodestone are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses or for measures
designed to sustain the Company through difficult times, to prevent unemployment or to mitigate its consequences.
The accompanying notes form an integral part of the Consolidated financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/ W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
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C
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9
Consolidated Statement of Cash Flows
Accounting policy
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts
of cash to be cash equivalents.
Particulars
Cash flow from operating activities
Profit for the period
Adjustments to reconcile net profit to net cash provided by operating activities
Income tax expense
Depreciation and amortization
Interest and dividend income
Finance cost
Impairment loss recognized / (reversed) under expected credit loss model
Exchange differences on translation of assets and liabilities, net
Stock compensation expense
Other adjustments
Changes in assets and liabilities
Trade receivables and unbilled revenue
Loans, other financial assets and other assets
Trade payables
Other financial liabilities, other liabilities and provisions
Cash generated from operations
Income taxes paid
Net cash generated by operating activities
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles
Deposits placed with corporation
Interest and dividend received
Payment towards acquisition of business, net of cash acquired
Payment of contingent consideration pertaining to acquisition of business
Redemption of escrow pertaining to buyback
Other receipts
Other payments
Payments to acquire investments
Preference, equity securities and others
Tax-free bonds and government bonds
Liquid mutual funds and fixed maturity plan securities
Non-convertible debentures
Certificates of deposit
Government securities
Others
Proceeds on sale of investments
Tax-free bonds and government bonds
Non-convertible debentures
Government securities
Commercial paper
Certificates of deposit
Liquid mutual funds and fixed maturity plan securities
Preference and equity securities
Others
Net cash (used in) / from investing activities
Note no.
Year ended March 31,
2021
2020
in ` crore
2.15
2.2, 2.3.2
& 2.19
2.17
2.11
19,423
16,639
7,205
5,368
3,267
(1,615)
195
190
(62)
333
(91)
(1,835)
(534)
(245)
3,382
29,613
(6,389)
23,224
(2,107)
(207)
1,418
(1,221)
(158)
–
49
(45)
–
(318)
(35,196)
(3,689)
–
(7,510)
(25)
–
1,251
2,704
–
1,149
36,353
73
23
(7,456)
2,893
(1,613)
170
161
184
249
(131)
(3,861)
76
(373)
1,791
21,553
(4,550)
17,003
(3,307)
(108)
1,929
(1,860)
(6)
257
46
–
(41)
(19)
(34,839)
(993)
(1,114)
(1,561)
(29)
87
1,888
1,674
500
2,545
34,685
27
–
(239)
230 | Consolidated financial statements
Infosys Annual Report 2020-21
Consolidated Statement of Cash Flows (contd.)
Particulars
Cash flows from financing activities
Payment of lease liabilities
Payment of dividends (including dividend distribution tax)
Payment of dividend to non-controlling interest of subsidiary
Shares issued on exercise of employee stock options
Payment towards purchase of non-controlling interest
Other receipts
Buyback of equity shares including transaction cost
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period
Supplementary information
Restricted cash balance
Note no.
Year ended March 31,
2021
2020
(698)
(9,117)
(20)
15
(49)
83
–
(9,786)
5,982
18,649
83
24,714
(571)
(9,515)
(33)
6
–
–
(7,478)
(17,591)
(827)
19,568
(92)
18,649
504
396
2.8
2.8
2.8
The accompanying notes form an integral part of the Consolidated financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/ W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No.: 039826
Mumbai
April 14, 2021
for and on behalf of the Board of Directors of Infosys Limited
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 14, 2021
Infosys Annual Report 2020-21
Consolidated financial statements | 231
Overview and notes to the consolidated financial statements
1. Overview
1.1 Company overview
Infosys Limited (“the Company” or Infosys) provides
consulting, technology, outsourcing and next-generation
digital services, to enable clients to execute strategies for
their digital transformation. Infosys’ strategic objective is to
build a sustainable organization that remains relevant to the
agenda of clients, while creating growth opportunities for
employees and generating profitable returns for investors.
Infosys’ strategy is to be a navigator for our clients as they
ideate, plan and execute on their journey to a digital future.
Infosys, together with its subsidiaries and controlled trusts,
is hereinafter referred to as “the Group”.
The Company is a public limited company incorporated and
domiciled in India and has its registered office at Electronics
City, Hosur Road, Bengaluru 560100, Karnataka, India.
The Company has its primary listings on BSE Limited and
the National Stock Exchange of India Limited. The Company’s
American Depositary Shares (ADSs) representing equity
shares are listed on the New York Stock Exchange (NYSE).
The Group’s Consolidated financial statements are approved for
issue by the Company’s Board of Directors on April 14, 2021.
1.2 Basis of preparation of financial statements
These Consolidated financial statements are prepared in
accordance with Indian Accounting Standards (Ind AS),
under the historical cost convention on accrual basis except
for certain financial instruments which are measured at fair
values, the provisions of the Companies Act, 2013 (“the
Act”) (to the extent notified) and guidelines issued by the
Securities and Exchange Board of India (SEBI). The Ind AS
are prescribed under Section 133 of the Act, read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015
and relevant amendment rules issued thereafter.
Accounting policies have been consistently applied except
where a newly-issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded
to the nearest digits, the figures reported for the previous
quarters might not always add up to the year-end figures
reported in this statement.
1.3 Basis of consolidation
Infosys consolidates entities which it owns or controls.
The Consolidated financial statements comprise the financial
statements of the Company, its controlled trusts and its
subsidiaries, as disclosed in Note 2.23. Control exists when
the parent has power over the entity, is exposed, or has rights
to variable returns from its involvement with the entity and
has the ability to affect those returns by using its power
over the entity. Power is demonstrated through existing
rights that give the ability to direct relevant activities, those
which significantly affect the entity’s returns. Subsidiaries are
consolidated from the date the control commences until the
date control ceases.
The financial statements of the Group companies are
consolidated on a line-by-line basis and intra-group
balances and transactions including unrealized gain / loss
from such transactions are eliminated upon consolidation.
These financial statements are prepared by applying uniform
accounting policies in use at the Group. Non-controlling
interests which represent part of the net profit or loss and
net assets of subsidiaries that are not, directly or indirectly,
owned or controlled by the Company, are excluded.
1.4 Use of estimates and judgments
The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and
the reported amounts of assets and liabilities, the disclosures
of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses
during the period. Application of accounting policies that
require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in
these financial statements have been disclosed in Note 1.5.
Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate
changes in estimates are made as the Management becomes
aware of changes in circumstances surrounding the estimates.
Changes in estimates are reflected in the financial statements
in the period in which changes are made and, if material,
their effects are disclosed in the notes to the Consolidated
financial statements.
Estimation of uncertainties relating to the global health
pandemic from COVID-19 ("COVID-19"):
The Group has considered the possible effects that may
result from the pandemic relating to COVID-19 in the
preparation of these Consolidated financial statements including
the recoverability of carrying amounts of financial and
non-financial assets. In developing the assumptions relating
to the possible future uncertainties in the global economic
conditions because of this pandemic, the Group has, at the
date of approval of these financial statements, used internal
and external sources of information including credit reports
and related information and economic forecasts and expects
that the carrying amount of these assets will be recovered.
The impact of COVID-19 on the Group’s financial statements
may differ from that estimated as at the date of approval of
these Consolidated financial statements.
1.5 Critical accounting estimates and judgments
a. Revenue recognition
The Group’s contracts with customers include promises
to transfer multiple products and services to a customer.
Revenues from customer contracts are considered for
recognition and measurement when the contract has been
approved, in writing, by the parties to the contract, the
parties to contract are committed to perform their respective
obligations under the contract, and the contract is legally
enforceable. The Group assesses the services promised in a
232 | Consolidated financial statements
Infosys Annual Report 2020-21
contract and identifies distinct performance obligations in the
contract. Identification of distinct performance obligations to
determine the deliverables and the ability of the customer to
benefit independently from such deliverables, and allocation
of transaction price to these distinct performance obligations
involve significant judgment.
Fixed-price maintenance revenue is recognized ratably on a
straight-line basis when services are performed through an
indefinite number of repetitive acts over a specified period.
Revenue from fixed-price maintenance contract is recognized
ratably using a percentage-of-completion method when the
pattern of benefits from the services rendered to the customer
and the Group’s costs to fulfil the contract is not even through
the period of the contract because the services are generally
discrete in nature and not repetitive. The use of a method
to recognize the maintenance revenues requires judgment
and is based on the promises in the contract and nature
of the deliverables.
The Group uses the percentage-of-completion method
in accounting for other fixed-price contracts. Use of the
percentage-of-completion method requires the Group to
determine the actual efforts or costs expended to date as a
proportion of the estimated total efforts or costs to be incurred.
Efforts or costs expended have been used to measure progress
towards completion as there is a direct relationship between
input and productivity. The estimation of total efforts or costs
involves significant judgment and is assessed throughout the
period of the contract to reflect any changes based on the
latest available information.
Provisions for estimated losses, if any, on uncompleted
contracts are recorded in the period in which such losses
become probable based on the estimated efforts or costs to
complete the contract.
b. Income taxes
The Company’s two major tax jurisdictions are India and
the US, though the Company also files tax returns in other
overseas jurisdictions.
Significant judgments are involved in determining the
provision for income taxes, including amount expected to
be paid / recovered for uncertain tax positions. Also, refer to
Notes 2.15 and 2.22.
In assessing the realizability of deferred income tax assets,
the Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible.
The Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income and
tax-planning strategies in making this assessment. Based
on the level of historical taxable income and projections for
future taxable income over the periods in which the deferred
income tax assets are deductible, the Management believes
that the Group will realize the benefits of those deductible
differences. The amount of the deferred income tax assets
considered realizable, however could be reduced in the near
term if estimates of future taxable income during the carry
forward period are reduced (refer to Note 2.15).
c. Business combinations and intangible assets
Business combinations are accounted for using Ind AS 103,
Business Combinations. Ind AS 103 requires the identifiable
intangible assets and contingent consideration to be fair
valued in order to ascertain the net fair value of identifiable
assets, liabilities and contingent liabilities of the acquiree.
Estimates are required to be made in determining the value
of contingent consideration, value of option arrangements
and intangible assets. These valuations are conducted by
external valuation experts. These measurements are based
on information available at the acquisition date and are based
on expectations and assumptions that have been deemed
reasonable by the Management (refer to Notes 2.1 and 2.3.2).
d. Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Group. The charge in
respect of periodic depreciation is derived after determining
an estimate of an asset’s expected useful life and the expected
residual value at the end of its life. The useful lives and
residual values of the Group’s assets are determined by the
Management at the time the asset is acquired and reviewed
periodically, including at each financial year end. The lives
are based on historical experience with similar assets as well
as anticipation of future events, which may impact their life,
such as changes in technology (refer to Note 2.2).
Impairment of goodwill
e.
Goodwill is tested for impairment on an annual basis and
whenever there is an indication that the recoverable amount
of a cash generating unit (CGU) is less than its carrying
amount. For the impairment test, goodwill is allocated to the
CGU or groups of CGUs which benefit from the synergies of
the acquisition and which represent the lowest level at which
goodwill is monitored for internal management purposes.
The recoverable amount of CGUs is determined based
on higher of value-in-use and fair value less cost to sell.
Key assumptions in the cash flow projections are prepared
based on current economic conditions and comprises
estimated long-term growth rates, weighted average cost of
capital and estimated operating margins (refer to Note 2.3.1).
f. Leases
Ind AS 116 requires lessees to determine the lease term as the
non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is
reasonably certain. The Group makes an assessment on the
expected lease term on a lease-by-lease basis and thereby assesses
whether it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating the lease
term, the Company considers factors such as any significant
leasehold improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance of the
underlying asset to Infosys’ operations taking into account the
location of the underlying asset and the availability of suitable
alternatives. The lease term in future periods is reassessed
to ensure that the lease term reflects the current economic
circumstances. After considering current and future economic
conditions, the Group has concluded that no material changes
are required to lease period relating to the existing lease contracts
(refer to Note 2.19).
Infosys Annual Report 2020-21
Consolidated financial statements | 233
g. Allowance for credit losses on receivables and
unbilled revenue
The Group determines the allowance for credit losses based
on historical loss experience adjusted to reflect current and
estimated future economic conditions. The Group considered
current and anticipated future economic conditions relating
to industries the Group deals with and the countries where
it operates. In calculating expected credit loss, the Group
has also considered credit reports and other related credit
information for its customers to estimate the probability of
default in future and has taken into account estimates of
possible effect from the pandemic relating to COVID-19.
2.1 Business combinations
Accounting policy
Business combinations have been accounted for using the
acquisition method under the provisions of Ind AS 103,
Business Combinations.
The cost of an acquisition is measured at the fair value of the
assets transferred, equity instruments issued and liabilities
incurred or assumed at the date of acquisition, which is the
date on which control is transferred to the Group. The cost
of acquisition also includes the fair value of any contingent
consideration. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are
measured initially at their fair value on the date of acquisition.
Contingent consideration is remeasured at fair value at
each reporting date and changes in the fair value of the
contingent consideration are recognized in the Consolidated
Statement of Profit and Loss.
The interest of non-controlling shareholders is initially
measured either at fair value or at the non-controlling
interests’ proportionate share of the acquiree’s identifiable
net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition,
the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the
non-controlling interests’ share of subsequent changes in
equity of subsidiaries.
The payments related to options issued by the Group
over the non-controlling interests in its subsidiaries are
accounted as financial liabilities and initially recognized at
the estimated present value of gross obligations. Such options
are subsequently measured at fair value in order to reflect
the amount payable under the option at the date at which
it becomes exercisable. In the event that the option expires
unexercised, the liability is derecognized.
Business combinations between entities under common
control is accounted for at carrying value of the assets and
liabilities in the Group’s Consolidated financial statements.
Transaction costs that the Group incurs in connection with
a business combination such as finder’s fees, legal fees, due
diligence fees, and other professional and consulting fees are
expensed as incurred.
Acquisitions during the year ended March 31, 2021
During the year ended March 31, 2021, the Group completed
three business combinations to complement its digital
offerings and end-to-end customer experience offerings to
customers by acquiring 100% voting interests in:
(i) Kaleidoscope Animations, Inc., a US-based Product Design
and Development Services focused primarily on medical
devices on October 9, 2020,
(ii) GuideVision, s.r.o., a ServiceNow Elite Partner in Europe
on October 1, 2020, and
(iii) Beringer Commerce Inc. and Beringer Capital Digital
Group Inc., collectively known as Blue Acorn iCi, an Adobe
Platinum partner in the US, and a leader in digital customer
experience, commerce and analytics on October 27, 2020.
The purchase price is allocated to assets acquired and
liabilities assumed based upon determination of fair values
at the dates of acquisition as follows:
Component
Net assets(1)
Intangible
assets – Vendor
relationships
Intangible assets –
Customer contracts
and relationships
Intangible assets –
Brand
Intangible assets –
Software
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Total purchase price
Acquiree’s
carrying
amount
137
Fair value
adjustments
–
in ` crore
Purchase
price
allocated
137
–
–
–
–
266
266
179
179
57
33
57
33
–
137
(23)
512
(23)
649
758
1,407
(1) Includes cash and cash equivalents acquired of ` 80 crore.
The excess of the purchase consideration paid over the fair
value of net assets acquired has been attributed to goodwill.
Goodwill majorly includes the value expected from increase
in revenues from various new streams of business, addition
of new customers, and estimated synergies which does not
qualify as an intangible asset.
Goodwill amounting to ` 520 crore is not tax-deductible.
Goodwill pertaining to these business combinations is allocated
to all the operating segments as fully described in Note 2.3.1.
The purchase consideration of ` 1,407 crore includes cash
of ` 1,307 crore and a contingent consideration with an
estimated fair value of ` 100 crore as on the date of acquisition.
At the acquisition date, the key inputs used in determination
of the fair value of contingent consideration are the
probabilities assigned towards the achievement of financial
targets and discount rates ranging from 12% to 13.5%.
The undiscounted value of contingent consideration as of
March 31, 2021 was ` 116 crore.
Additionally, these acquisitions have retention payouts
payable to the employees of the acquiree over the next two
to three years, subject to their continuous employment with
the Group along with the achievement of financial targets
234 | Consolidated financial statements
Infosys Annual Report 2020-21
for the respective years. Retention bonus is recognized in
employee benefit expenses in the Statement of Profit and Loss
over the period of service.
Fair value of trade receivables acquired, is ` 108 crore as of
acquisition date and as of March 31, 2021, the amounts are
substantially collected.
The transaction costs of ` 11 crore related to the acquisition
have been included in the Consolidated Statement of Profit
and Loss for the year ended March 31, 2021.
HIPUS Co., Ltd (formerly Hitachi Procurement Service
Co. Ltd)
On April 1, 2019, Infosys Consulting Pte Ltd. (a wholly-owned
subsidiary of Infosys Limited) acquired 81% voting interests
in HIPUS Co., Ltd (HIPUS), a wholly-owned subsidiary of
Hitachi Ltd, Japan for a total cash consideration of JPY 3.29
billion (approximately ` 206 crore). The Group recorded a
financial liability for the estimated present value of its gross
obligation to purchase the non-controlling interest as of
the acquisition date in accordance with the share purchase
agreement with a corresponding adjustment to equity
HIPUS handles indirect materials-purchasing functions for the
Hitachi Group. The entity provides end-to-end procurement
capabilities, through its procurement function expertise,
localized team and BPM networks in Japan. The excess of
the purchase consideration paid over the fair value of assets
acquired has been attributed to goodwill. The primary items
that generated this goodwill are the value of the acquired
assembled workforce and estimated synergies, neither of
which qualify as an amortizable intangible asset.
The purchase price is allocated to assets acquired and
liabilities assumed based on the determination of fair values
at the dates of acquisition as follows:
Component
Net assets(1)
Intangible assets –
Customer contracts
and relationships
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Less: Non-
controlling Interest
Total purchase price
Acquiree’s
carrying
amount
41
Fair value
adjustments
–
in ` crore
Purchase
price
allocated
41
–
116
116
–
41
(36)
80
(36)
121
108
(23)
206
(1) Includes cash and cash equivalents acquired of ` 179 crore
Goodwill is not tax-deductible.
The gross amount of trade receivables acquired and its
fair value is ` 1,400 crore and the amount has been fully
collected. Trade payables as on the acquisition date
amounted to ` 1,508 crore.
The transaction costs of ` 8 crore related to the acquisition have
been included under administrative expenses in the Consolidated
Statement of Profit and Loss for the year ended March 31, 2019.
Stater N.V.
On May 23, 2019, Infosys Consulting Pte Ltd. (a wholly-owned
subsidiary of Infosys Limited) acquired 75% voting interests in
Stater N.V. (Stater), a wholly-owned subsidiary of ABN AMRO
Bank N.V., Netherland, for a total cash consideration of Euro
154 million (approximately ` 1,195 crore). The Company has
recorded a financial liability for the estimated present value of
its gross obligation to purchase the non-controlling interest as
of the acquisition date in accordance with the share purchase
agreement with a corresponding adjustment to equity.
Stater brings European mortgage expertise and a robust digital
platform to drive superior customer experience. The excess of
the purchase consideration paid over the fair value of assets
acquired has been attributed to goodwill. The primary items
that generated this goodwill are the value of the acquired
assembled workforce and estimated synergies, neither of
which qualify as an amortizable intangible asset.
The purchase price is allocated to assets acquired and
liabilities assumed based on the determination of fair values
at the dates of acquisition as follows:
Component
Net assets(1)
Intangible assets –
Customer contracts
and relationships
Intangible assets –
Technology
Intangible assets –
Brand
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Less: Non-
controlling interest
Total purchase price
Acquiree’s
carrying
amount
541
Fair value
adjustments
–
in ` crore
Purchase
price
allocated
541
–
–
–
549
549
110
110
24
24
–
541
(140)
543
(140)
1,084
399
(288)
1,195
(1) Includes cash and cash equivalents acquired of ` 505 crore
Goodwill is not tax-deductible.
The gross amount of trade receivables acquired and its fair
value is ` 78 crore and the amount has been fully collected.
The transaction costs of ` 5 crore related to the acquisition have
been included under administrative expenses in the Consolidated
Statement of Profit and Loss for the year ended March 31, 2020.
Outbox Systems Inc. dba Simplus
On March 13, 2020, Infosys Nova Holdings LLC
(a wholly-owned subsidiary of Infosys Limited) acquired
100% voting interests in Outbox Systems Inc. dba Simplus,
a US-based Salesforce advisor and consulting partner in cloud
consulting, implementation and training services for a total
consideration of up to US$ 200 million (approximately ` 1,513
crore), comprising a cash consideration of US$ 180 million
(approximately ` 1,362 crore) and a contingent consideration
of up to US$ 20 million (approximately ` 151 crore).
Infosys Annual Report 2020-21
Consolidated financial statements | 235
152
152
2.2 Property, plant and equipment
Simplus brings to Infosys globally recognized Salesforce
expertise, industry knowledge, solution assets, deep
ecosystem relationships and a broad clientele across a variety
of industries. The excess of the purchase consideration paid
over the fair value of assets acquired has been attributed to
goodwill. Goodwill includes the value expected from the
addition of new customers and estimated synergies which
does not qualify as an intangible asset.
The purchase price is allocated to assets acquired and
liabilities assumed based on the determination of fair values
at the dates of acquisition as follows:
Acquiree’s
carrying
amount
22
Fair value
adjustments
–
in ` crore
Purchase
price
allocated
22
Component
Net assets(1)
Intangible assets –
Customer contracts
and relationships
Intangible
assets – Vendor
relationships
Intangible assets –
Brand
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Total purchase price
–
–
–
325
325
111
111
–
22
(152)
436
(152)
458
983
1,441
(1) Includes cash and cash equivalents acquired of ` 7 crore
Goodwill is not tax-deductible.
The fair value of each major class of consideration as of the
acquisition date is as follows:
Component
Cash consideration
Fair value of contingent consideration
Total purchase price
in ` crore
Consideration
settled
1,357
84
1,441
The gross amount of trade receivables acquired and its
fair value is approximately ` 73 crore and the amount has
been fully collected.
Additionally, this acquisition has retention payouts of up to
US$ 50 million (` 379 crore) payable to the employees of the
acquiree over the next three years, subject to their continuous
employment with the Group along with the achievement of
financial targets for the respective years. Retention bonus is
recognized in employee benefit expenses in the Statement of
Profit and Loss over the period of service.
The transaction costs of ` 6 crore related to the acquisition have
been included under administrative expenses in the Consolidated
Statement of Profit and Loss for the year ended March 31, 2020.
Business transfer – Kallidus Inc. and Skava Systems
Private Limited
On October 11, 2019, the Board of Directors of Infosys
authorized the Company to execute a business transfer
agreement and related documents with its wholly-owned
subsidiaries, Kallidus Inc. and Skava Systems Private Limited
(together referred to as “Skava”), to transfer the business of
Skava to Infosys Limited for a consideration based on an
independent valuation. On August 15, 2020, the Company
entered into a business transfer agreement to transfer the
business of Kallidus Inc. and Skava Systems Private Limited for
a consideration of ` 171 crore and ` 66 crore, respectively, on
securing the requisite regulatory approvals. The transaction was
between a holding company and a wholly-owned subsidiary
and therefore was accounted for at carrying values and did not
have any impact on the Consolidated financial statements.
On March 9, 2021, Kallidus Inc. was liquidated. Further, on
March 29, 2021, the shareholders of Skava have approved to
voluntarily liquidate the affairs of the Company. Accordingly,
Skava will complete the process of voluntary liquidation
pursuant to Section 59 of the Insolvency and Bankruptcy Code
of 2016 and applicable provisions of the Companies Act, 2013.
Accounting policy
Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any.
Costs directly attributable to acquisition are capitalized
until the property, plant and equipment are ready for use,
as intended by the Management. The Group depreciates
property, plant and equipment over their estimated useful
lives using the straight-line method. The estimated useful
lives of assets are as follows:
Buildings(1)
Plant and machinery(1)(2)
Office equipment
Computer equipment(1)
Furniture and fixtures(1)
Vehicles(1)
Leasehold improvements
22-25 years
5 years
5 years
3-5 years
5 years
5 years
Lower of useful life of the
asset or lease term
(1) Based on technical evaluation, the Management believes that the
useful lives as given above best represent the period over which the
Management expects to use these assets. Hence, the useful lives for
these assets is different from the useful lives as prescribed under Part C
of Schedule II of the Companies Act, 2013.
(2) Includes a solar plant with a useful life of 20 years
Depreciation methods, useful lives and residual values are
reviewed periodically, including at each financial year end.
Advances paid towards the acquisition of property, plant and
equipment outstanding at each Balance Sheet date is classified
as capital advances under other non-current assets and the
cost of assets not ready to use before such date are disclosed
under ‘Capital work-in-progress’. Subsequent expenditures
relating to property, plant and equipment are capitalized only
when it is probable that future economic benefits associated
with these will flow to the Group and the cost of the item
can be measured reliably. Repairs and maintenance costs are
recognized in the Consolidated Statement of Profit and Loss
when incurred. The cost and related accumulated depreciation
are eliminated from the financial statements upon sale or
retirement of the asset and the resultant gains or losses are
recognized in the Consolidated Statement of Profit and Loss.
236 | Consolidated financial statements
Infosys Annual Report 2020-21
Impairment
Property, plant and equipment are evaluated for recoverability
whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the cash generating
unit to which the asset belongs.
If such assets are considered to be impaired, the impairment to
be recognized in the Consolidated Statement of Profit and Loss
is measured by the amount by which the carrying value of the
assets exceeds the estimated recoverable amount of the asset.
An impairment loss is reversed in the Consolidated Statement
of Profit and Loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net of
any accumulated depreciation) had no impairment loss been
recognized for the asset in prior years.
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2021 are as follows:
Particulars
Land –
Freehold
Buildings
(1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and fixtures
Leasehold
improvements
in ` crore
Vehicles
Total
Gross carrying value
as at April 1, 2020
Additions
Additions
– Business
combination
(Refer to Note 2.1)
Deletions
Translation
difference
Gross carrying value
as at March 31,
2021
Accumulated
depreciation as at
April 1, 2020
Depreciation
Accumulated
depreciation on
deletions
Translation
difference
Accumulated
depreciation as at
March 31, 2021
Carrying value as at
April 1, 2020
Carrying value as at
March 31, 2021
1,318
82
10,016
511
3,185
117
1,265
118
6,676
1,159
2,073
91
1,063
152
45
1
25,641
2,231
–
(1)
–
–
1
(10)
2
(16)
4
(211)
2
(19)
1
(33)
–
(2)
10
(292)
–
38
3
2
11
2
5
–
61
1,399
10,565
3,296
1,371
7,639
2,149
1,188
44
27,651
–
–
(3,284)
(386)
(2,145)
(290)
(934)
(123)
(4,885)
(954)
(1,380)
(222)
(550)
(185)
(28) (13,206)
(2,166)
(6)
–
–
–
(5)
10
–
15
199
(1)
4
18
4
33
2
2
–
277
4
–
(3,675)
(2,425)
(1,043)
(5,636)
(1,580)
(700)
(32) (15,091)
1,318
6,732
1,040
331
1,791
1,399
6,890
871
328
2,003
693
569
513
17
12,435
488
12
12,560
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2020 were as follows:
Particulars
Land –
Freehold
Land –
Leasehold
Buildings
(1)
Plant and
machinery
Office
equipment
Computer
equipment
in ` crore
Vehicles
Total
Furniture
and
fixtures
Leasehold
improvements
Gross carrying value
as at April 1, 2019
Additions
Additions – Business
combination
(Refer to Note 2.1)
Deletions
1,307
11
605
–
8,926
1,056
2,709
475
1,101
169
5,846
930
1,620
465
739
324
38
7
22,891
3,437
–
–
–
–
–
–
–
(3)
1
(8)
62
(179)
9
(24)
6
(18)
–
(1)
78
(233)
Infosys Annual Report 2020-21
Consolidated financial statements | 237
Particulars
Land –
Freehold
Land –
Leasehold
Buildings
(1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and
fixtures
Leasehold
improvements
Vehicles
Total
Reclassified on
account of adoption
of Ind AS 116
(Refer to Note 2.19)
Translation
difference
Gross carrying value
as at March 31, 2020
Accumulated
depreciation as at
April 1, 2019
Depreciation
Accumulated
depreciation on
deletions
Reclassified on
account of adoption
of Ind AS 116
(Refer to Note 2.19)
Translation difference
Accumulated
depreciation as at
March 31, 2020
Carrying value as at
April 1, 2019
Carrying value as at
March 31, 2020
–
(605)
–
–
–
34
–
4
–
2
–
17
–
3
–
–
(605)
12
1
73
1,318
– 10,016
3,185
1,265
6,676
2,073
1,063
45
25,641
–
–
–
–
–
–
(33)
–
(2,927)
(353)
(1,841)
(306)
(813)
(128)
(4,192) (1,170)
(233)
(862)
(414)
(146)
(22)
(7)
(11,412)
(2,035)
–
–
3
8
179
23
18
1
232
33
–
–
(4)
–
(1)
–
(1)
–
(10)
–
–
–
(8)
–
–
33
(24)
–
(3,284)
(2,145)
(934)
(4,885) (1,380)
(550)
(28)
(13,206)
1,307
572
5,999
868
288
1,654
450
325
16
11,479
1,318
–
6,732
1,040
331
1,791
693
513
17
12,435
(1) Buildings include ` 250 being the value of five shares of ` 50 each in Mittal Towers Premises Co-operative Society Limited.
The aggregate depreciation has been included under
depreciation and amortization expense in the Consolidated
Statement of Profit and Loss.
2.3 Goodwill and other intangible assets
2.3.1 Goodwill
Accounting policy
Goodwill represents the purchase consideration in excess of
the Group’s interest in the net fair value of identifiable assets,
liabilities and contingent liabilities of the acquired entity.
When the net fair value of the identifiable assets, liabilities and
contingent liabilities acquired exceeds purchase consideration,
the fair value of net assets acquired is reassessed and the
bargain purchase gain is recognized in capital reserve. Goodwill
is measured at cost less accumulated impairment losses.
Impairment
Goodwill is tested for impairment on an annual basis and
whenever there is an indication that the recoverable amount of
a Cash Generating Unit (CGU) is less than its carrying amount.
For the impairment test, goodwill is allocated to the CGU
or groups of CGUs which benefit from the synergies of the
acquisition. A CGU is the smallest identifiable group of assets
that generates cash inflows that are largely independent of the
cash inflows from other assets or group of assets. Impairment
occurs when the carrying amount of a CGU including the
goodwill, exceeds the estimated recoverable amount of the
CGU. The recoverable amount of a CGU is the higher of its
fair value less cost to sell and its value-in-use. Value-in-use
is the present value of future cash flows expected to be
derived from the CGU.
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 of the CGU pro-rata on the basis of the
carrying amount of each asset in the CGU. An impairment
loss on goodwill is recognized in the Consolidated Statement
of Profit and Loss and is not reversed in the subsequent period.
A summary of the changes in the carrying amount of
goodwill is as follows:
Particulars
Carrying value at the beginning
Goodwill on Hipus acquisition
(Refer to Note 2.1)
Goodwill on Stater acquisition
(Refer to Note 2.1)
Goodwill on Simplus
acquisition (Refer to Note 2.1)
Goodwill on acquisitions
(Refer to Note 2.1)
Translation differences
Carrying value at the end
in ` crore
As at March 31,
2021
5,286
2020
3,540
–
–
–
108
399
983
758
35
6,079
–
256
5,286
238 | Consolidated financial statements
Infosys Annual Report 2020-21
For the purpose of impairment testing, goodwill acquired in
a business combination is allocated to the CGU or groups of
CGUs, which benefit from the synergies of the acquisition.
The Group internally reviews the goodwill for impairment at
the operating segment level, after allocation of the goodwill
to CGUs or groups of CGUs.
The allocation of goodwill to operating segments as at
March 31, 2021 and March 31, 2020 is as follows:
Segment
Financial Services
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Operating segments without
significant goodwill
Total
in ` crore
As at March 31,
2021
1,359
797
605
1,046
487
4,294
925
5,219
2020
1,262
500
472
886
378
3,498
766
4,264
The goodwill pertaining to Panaya is tested for impairment at
the entity level as at March 31, 2021 and amounts to ` 860 crore.
The goodwill pertaining to Panaya, Kallidus and Skava are
tested for impairment at the respective entity level, amounting
to ` 1,022 crore as at March 31, 2020.
The recoverable amount of a CGU is the higher of its fair value
less cost to sell and its value-in-use. The fair value of a CGU is
determined based on the market capitalization. Value-in-use
is determined based on discounted future cash flows.
The key assumptions used for the calculations are as follows:
in %
Particulars
As at March 31,
Long-term growth rate
Operating margins
Discount rate
2021
8-10
19-21
11.7
2020
7-10
17-20
11.9
The above discount rate is based on the Weighted Average
Cost of Capital (WACC) of the Company. As at March 31,
2021, the estimated recoverable amount of the CGU
exceeded its carrying amount. Reasonable sensitivities in key
assumptions consequent to the change in estimated future
economic conditions on account of possible effects relating
to COVID-19 is unlikely to cause the carrying amount to
exceed the recoverable amount of the cash generating units.
2.3.2 Other intangible assets
Accounting policy
Intangible assets are stated at cost less accumulated
amortization and impairment. Intangible assets are
amortized over their respective individual estimated useful
lives on a straight-line basis, from the date that they are
available for use. The estimated useful life of an identifiable
intangible asset is based on a number of factors including
the effects of obsolescence, demand, competition, and other
economic factors (such as the stability of the industry, and
known technological advances). Amortization methods
and useful lives are reviewed periodically including at
each financial year end.
Research costs are expensed as incurred. Software product
development costs are expensed as incurred unless technical
and commercial feasibility of the project is demonstrated,
future economic benefits are probable, the Group has an
intention and ability to complete and use or sell the software
and the costs can be measured reliably. The costs which can
be capitalized include the cost of material, direct labour,
overhead costs that are directly attributable to preparing the
asset for its intended use.
Impairment
Intangible assets are evaluated for recoverability whenever
events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the higher
of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does
not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is
determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment
to be recognized in the Consolidated Statement of Profit and
Loss is measured by the amount by which the carrying value
of the assets exceeds the estimated recoverable amount of
the asset. An impairment loss is reversed in the Consolidated
Statement of Profit and Loss if there has been a change in
the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined
(net of any accumulated amortization) had no impairment
loss been recognized for the asset in prior years.
Infosys Annual Report 2020-21
Consolidated financial statements | 239
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2021 are as follows:
Particulars
Gross carrying value as at April 1, 2020
Additions
Acquisition through business combination
(Refer to Note 2.1)
Deletions
Translation difference
Gross carrying value as at March 31, 2021
Accumulated amortization as at April 1, 2020
Amortization expense
Deletions
Translation differences
Accumulated amortization as at March 31,
2021
Carrying value as at April 1, 2020
Carrying value as at March 31, 2021
Estimated useful life (in years)
Estimated remaining useful life (in years)
Customer-
related
Software-
related
1,878
–
179
–
7
2,064
(755)
(272)
–
6
(1,021)
1,123
1,043
1-15
1-13
697
101
33
–
(7)
824
(450)
(53)
–
11
(492)
247
332
3-10
1-8
Intellectual
property
rights-related
1
–
Brand or
trademark-
related
241
–
–
–
–
1
(1)
–
–
–
(1)
–
–
–
–
57
–
(5)
293
(66)
(34)
–
1
(99)
175
194
3-10
1-9
Others(1)
in ` crore
Total
3,228
101
535
–
(16)
3,848
(1,328)
(466)
–
18
(1,776)
1,900
2,072
411
–
266
–
(11)
666
(56)
(107)
–
–
(163)
355
503
3-7
1-7
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2020 were as follows:
Particulars
Customer-
related
Software-
related
Gross carrying value as at April 1, 2019
Additions
Acquisition through business combination
(Refer to Note 2.1)
Reclassified on account of adoption of Ind AS 116
Translation difference
Gross carrying value as at March 31, 2020
Accumulated amortization as at April 1, 2019
Amortization expense
Reclassified on account of adoption of Ind AS
116 (Refer to Note 2.19)
Translation differences
Accumulated amortization as at March 31,
2020
Carrying value as at April 1, 2019
Carrying value as at March 31, 2020
Estimated useful life (in years)
Estimated remaining useful life (in years)
937
–
441
86
817
–
124
1,878
(557)
(146)
110
–
60
697
(302)
(105)
–
(52)
–
(43)
(755)
380
1,123
1-15
0-14
(450)
139
247
3-10
0-9
Intellectual
property
rights-
related
1
–
Land
use –
Rights-
related
73
–
–
–
–
1
(1)
–
–
–
(1)
–
–
–
–
–
(73)
–
–
(11)
–
11
–
–
62
–
–
–
in ` crore
Others(1)
Total
Brand or
trademark-
related
99
–
135
–
7
241
(44)
(17)
–
(5)
(66)
55
175
5-10
1-10
83
–
1,634
86
325
–
3
411
(28)
(27)
1,387
(73)
194
3,228
(943)
(295)
–
(1)
11
(101)
(1,328)
691
1,900
(56)
55
355
3-5
1-5
(1) Majorly includes intangibles related to vendor relationships
The amortization expense has been included under depreciation and amortization expense in the Consolidated
Statement of Profit and Loss.
Research and development expenditure
Research and development expense recognized in the Consolidated Statement of Profit and Loss for the years ended March 31,
2021 and March 31, 2020 was ` 945 crore and ` 829 crore, respectively.
240 | Consolidated financial statements
Infosys Annual Report 2020-21
2.4
Investments
Particulars
Non-current
Unquoted
Investments carried at fair value through other comprehensive income (Refer to Note 2.4.1)
Preference securities
Equity instruments
Investments carried at fair value through profit and loss (Refer to Note 2.4.1)
Preference securities
Compulsorily convertible debentures
Others(1)
Quoted
Investments carried at amortized cost (Refer to Note 2.4.2)
Tax-free bonds
Government bonds
Investments carried at fair value through other comprehensive income (Refer to Note 2.4.4)
Non-convertible debentures
Government securities
Total non-current investments
Current
Unquoted
Investments carried at fair value through profit or loss (Refer to Note 2.4.3)
Liquid mutual fund units
Investments carried at fair value through other comprehensive income (Refer to Note 2.4.4)
Certificates of deposit
Quoted
Investments carried at fair value through profit and loss (Refer to Note 2.4.3)
Fixed maturity plan securities
Investments carried at fair value through other comprehensive income (Refer to Note 2.4.4)
Non-convertible debentures
Total current investments
Total investments
Aggregate amount of quoted investments
Market value of quoted investments (including interest accrued), current
Market value of quoted investments (including interest accrued), non-current
Aggregate amount of unquoted investments
Investments carried at amortized cost
Investments carried at fair value through other comprehensive income
Investments carried at fair value through profit or loss
in ` crore
As at March 31,
2021
2020
165
2
167
11
7
74
92
2,131
21
2,152
3,985
5,467
9,452
11,863
1,500
1,500
–
–
–
–
842
842
2,342
14,205
12,446
843
11,997
1,759
2,152
10,461
1,592
101
1
102
9
–
54
63
1,825
21
1,846
1,462
664
2,126
4,137
2,104
2,104
1,126
1,126
489
489
936
936
4,655
8,792
5,397
1,425
4,268
3,395
1,846
4,290
2,656
(1) Uncalled capital commitments outstanding as at March 31, 2021 and March 31, 2020 was ` 42 crore and ` 61 crore, respectively.
Refer to Note 2.10 for Accounting policies on Financial Instruments.
The details of amounts recorded in other comprehensive income are as follows:
Net gain / (loss) on
Non-convertible debentures
Certificates of deposit
Government securities
Equity and preference securities
Infosys Annual Report 2020-21
Year ended March 31, 2021
Gross
Tax
(5)
(3)
(114)
136
1
1
18
(17)
Net
(4)
(2)
(96)
119
in ` crore
Year ended March 31, 2020
Gross
Tax
27
(4)
–
(27)
(3)
2
–
(6)
Net
24
(2)
–
(33)
Consolidated financial statements | 241
Method of fair valuation
Class of investment
Method
Liquid mutual fund units
Fixed maturity plan securities
Tax-free bonds and government bonds
Non-convertible debentures
Government securities
Certificate of deposits
Unquoted equity and preference securities – carried
at fair value through other comprehensive income
Unquoted equity and preference securities –
carried at fair value through profit and loss
Unquoted compulsorily convertible debentures –
carried at fair value through profit and loss
Others
Quoted price
Market observable inputs
Quoted price and market observable inputs
Quoted price and market observable inputs
Quoted price
Market observable inputs
Discounted cash flows method, Market
multiples method, Option pricing model
Discounted cash flows method, Market
multiples method, Option pricing model
Discounted cash flows method
Discounted cash flows method, Market
multiples method, Option pricing model
Total
Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments.
in ` crore
Fair value as at March 31
2020
2,104
489
2,144
2,398
664
1,126
2021
1,500
–
2,536
4,827
5,467
–
167
102
11
7
9
–
74
14,589
54
9,090
2.4.1 Details of investments
The details of investments in preference, equity and other instruments at March 31, 2021 and March 31, 2020 are as follows:
in ` crore, except otherwise stated
Particulars
Preference securities
Airviz, Inc.
2,82,279 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop, Inc.
11,05,934 (16,48,352) Series B Preferred Stock, fully paid up, par value USD 0.0001 each
Nivetti Systems Private Limited
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value ` 1 each
Trifacta Inc.
11,80,358 (11,80,358) Series C-1 Preferred Stock
19,59,823 (19,59,823) Series E Preferred Stock
Tidalscale, Inc.
36,74,269 (36,74,269) Series B Preferred Stock
Ideaforge Technology Private Limited
5,402 (5,402) Series A compulsorily convertible cumulative preference shares of ` 10 each, fully
paid up
Total investment in preference securities
Equity instruments
Merasport Technologies Private Limited
2,420 (2,420) equity shares at ` 8,052 each, fully paid up, par value ` 10 each
Global Innovation and Technology Alliance
15,000 (15,000) equity shares at ` 1,000 each, fully paid up, par value ` 1,000 each
Ideaforge Technology Private Limited
100 (100) equity shares at ` 10, fully paid up
Total investment in equity instruments
Compulsorily convertible debentures
Ideaforge Technology Private Limited
3,886 (Nil) compulsorily convertible debentures, fully paid up, par value ` 19,300 each
Total investment in debentures
Others
Stellaris Venture Partners India
The House Fund II, L.P.
Total investment in others
Total
As at March 31,
2021
2020
–
94
20
40
11
11
–
40
10
42
9
9
176
110
–
2
–
2
7
7
–
1
–
1
–
–
42
32
74
259
30
24
54
165
242 | Consolidated financial statements
Infosys Annual Report 2020-21
2.4.2 Details of investments in tax-free bonds and government bonds
The balances held in tax-free bonds as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
7.04% Indian Railway Finance Corporation Limited
Bonds 03MAR2026
7.16% Power Finance Corporation Limited Bonds
17JUL2025
7.18% Indian Railway Finance Corporation Limited
Bonds 19FEB2023
7.28% Indian Railway Finance Corporation Limited
Bonds 21DEC2030
7.28% National Highways Authority of India Limited
Bonds 18SEP2030
7.34% Indian Railway Finance Corporation Limited
Bonds 19FEB2028
7.35% National Highways Authority of India Limited
Bonds 11JAN2031
7.93% Rural Electrification Corporation Limited Bonds
27MAR2022
8.10% Indian Railway Finance Corporation Limited
Bonds 23FEB2027
8.26% India Infrastructure Finance Company Limited
Bonds 23AUG2028
8.30% National Highways Authority of India Limited
Bonds 25JAN2027
8.35% National Highways Authority of India Limited
Bonds 22NOV2023
8.46% India Infrastructure Finance Company Limited
Bonds 30AUG2028
8.46% Power Finance Corporation Limited Bonds
30AUG2028
8.48% India Infrastructure Finance Company Limited
Bonds 05SEP2028
8.54% Power Finance Corporation Limited Bonds
16NOV2028
8.76% National Housing Bank 13JAN2034
Total investments in tax-free bonds
Face value `
As at March 31, 2021
As at March 31, 2020
Units
Amount
Units
Amount
in ` crore, except as otherwise stated
10,00,000
470
49
470
10,00,000
1,000
104
1,000
1,000 20,00,000
200
20,00,000
1,000
4,22,800
42
4,22,800
10,00,000
3,300
341
3,300
1,000 21,00,000
210
21,00,000
1,000
5,71,396
57
5,71,396
1,000
2,00,000
20
2,00,000
1,000
5,00,000
52
5,00,000
49
105
201
42
341
210
57
20
52
10,00,000
1,000
100
1,000
100
1,000
5,00,000
52
5,00,000
10,00,000
1,500
150
1,500
10,00,000
2,000
200
2,000
10,00,000
1,500
150
1,500
10,00,000
2,400
289
450
53
150
200
150
45
1,000
5,000
5,00,000
92,000
68,99,366
50
65
2,131
5,00,000
–
68,05,416
50
–
1,825
The balances held in government bonds as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Treasury Notes Philippines Govt. 04DEC2022
Treasury Notes Philippines Govt. 08MAR2023
Total investments in government bonds
in ` crore, except as otherwise stated
Face value
PHP
10,000
10,000
As at March 31, 2021
As at March 31, 2020
Units
9,000
5,500
14,500
Amount
13
8
21
Units
9,000
5,500
14,500
Amount
13
8
21
2.4.3 Details of investments in liquid mutual fund units and fixed maturity plans
The balances held in liquid mutual fund units as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
ABSL Overnight Regular – Growth
Aditya Birla Sun Life Cash Manager – Growth
Aditya Birla Sun life Corporate Bond Fund – Growth – Direct Plan
Aditya Birla Sun Life Liquid Fund – Growth – Direct Plan
Aditya Birla Sun Life Overnight Fund – Growth – Direct Plan
Axis Liquid Fund – Growth Option – Direct Plan
Axis Treasury Advantage Fund – Growth
in ` crore, except as otherwise stated
As at March 31, 2021
As at March 31, 2020
Units
6,82,683
–
–
–
12,59,439
8,99,316
–
Amount
75
–
–
–
140
206
–
Units
–
1,68,237
2,66,97,315
16,90,522
–
–
8,65,146
Amount
–
8
211
54
–
–
201
Infosys Annual Report 2020-21
Consolidated financial statements | 243
Particulars
As at March 31, 2021
As at March 31, 2020
Blackrock Liquidity Mutual Fund
HDFC Liquid Fund – Direct Plan – Growth Option
HDFC Overnight Fund Direct Plan – Growth Option
ICICI Prudential Liquid Fund – Direct Plan – Growth
ICICI Prudential Overnight Fund – Direct Plan – Growth
IDFC Banking and PSU Fund – Direct Plan – Growth Option
IDFC Cash Fund – Growth – Direct Plan
IDFC Corporate Bond – Fund Direct Plan
Kotak Liquid Fund – Direct Plan – Growth Option
Nippon India Liquid Fund – Direct Plan Growth Plan – Growth
Option
SBI Overnight Fund – Direct Plan – Growth
SBI Premier Liquid Fund – Direct Plan – Growth
UTI Overnight Fund – Direct Growth
Total investments in liquid mutual fund units
Units
39,65,897
–
3,76,122
–
1,40,75,822
–
4,02,284
–
6,28,350
1,98,715
4,84,107
–
5,51,036
2,35,23,771
Amount
29
–
115
–
156
–
100
–
262
Units
–
5,55,555
10,10,508
79,30,594
–
8,88,49,927
–
1,19,02,495
7,47,509
100
162
–
155
–
9,22,151
3,31,803
–
1,500 14,16,71,762
Amount
–
217
300
233
–
160
–
17
300
–
300
103
–
2,104
The balances held in fixed maturity plans as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Aditya Birla Sun Life Fixed Term Plan – Series OD 1145 Days –
GR Direct
Aditya Birla Sun Life Fixed Term Plan – Series OE 1153 Days – GR
Direct
HDFC FMP 1155D Feb 2017 – Direct Growth – Series 37
HDFC FMP 1169D Feb 2017 – Direct – Quarterly Dividend –
Series 37
ICICI FMP Series 80-1194 D Plan F Div
ICICI Prudential Fixed Maturity Plan Series 80-1187 Days Plan G
Direct Plan
ICICI Prudential Fixed Maturity Plan Series 80-1253 Days Plan J
Direct Plan
IDFC Fixed Term Plan Series 129 Direct Plan – Growth 1147 Days
IDFC Fixed Term Plan Series 131 Direct Plan – Growth 1139 Days
Kotak FMP Series 199 Direct – Growth
Nippon India Fixed Horizon Fund-XXXII Series 8 – Dividend Plan
Total investments in fixed maturity plan securities
in ` crore, except as otherwise stated
As at March 31, 2021
As at March 31, 2020
Units
Amount
Units
Amount
–
–
–
–
–
–
–
–
–
–
–
–
–
6,00,00,000
–
–
–
–
2,50,00,000
3,80,00,000
4,50,00,000
5,50,00,000
–
4,20,00,000
–
3,00,00,000
–
1,00,00,000
–
1,50,00,000
–
3,50,00,000
5,00,00,000
–
– 40,50,00,000
74
31
47
45
68
52
37
12
19
44
60
489
2.4.4
Details of investments in non-convertible debentures, government securities, certificates of deposit and
commercial paper
The balances held in non-convertible debenture units as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
5.35% LIC Housing Finance Ltd 20MAR2023
5.53% LIC Housing Finance Ltd 20DEC2024
5.40% Housing Development Finance Corporation Ltd
11AUG2023
5.78% Housing Development Finance Corporation Ltd
25NOV2025
6.40% LIC Housing Finance Ltd 24JAN2025
6.43% Housing Development Finance Corporation Ltd
29SEP2025
6.95% Housing Development Finance Corporation
27APR2023
6.99% Housing Development Finance Corporation Ltd
13FEB2023
in ` crore, except as otherwise stated
Face value `
As at March 31, 2021
As at March 31, 2020
10,00,000
10,00,000
Units
1,000
4,750
Amount
100
475
Units
–
–
Amount
–
–
10,00,000
4,500
10,00,000
10,00,000
7,750
4,000
10,00,000
5,250
10,00,000
1,250
10,00,000
750
468
776
402
545
137
78
–
–
–
–
–
–
–
–
–
–
–
–
244 | Consolidated financial statements
Infosys Annual Report 2020-21
Particulars
Face value `
As at March 31, 2021
As at March 31, 2020
7.03% LIC Housing Finance Ltd 28DEC2021
7.20% Housing Development Finance Corporation Ltd
13APR2023
7.24% LIC Housing Finance Ltd 23AUG2021
7.33% LIC Housing Finance Ltd 12FEB2025
7.35% Housing Development Finance Corporation Ltd
10FEB2025
7.40% LIC Housing Finance Ltd 06SEP2024
7.58% LIC Housing Finance Ltd 11JUN2020
7.59% LIC Housing Finance Ltd 14OCT2021
7.75% LIC Housing Finance Ltd 27AUG2021
7.79% LIC Housing Finance Ltd 19JUN2020
7.81% LIC Housing Finance Ltd 27APR2020
8.37% LIC Housing Finance Ltd 10MAY2021
8.49% Housing Development Finance Corporation Ltd
27APR2020
8.50% Housing Development Finance Corporation Ltd
31AUG2020
8.50% LIC Housing Finance Ltd 20JUN2022
8.58% Housing Development Finance Corporation Ltd
22MAR2022
8.60% LIC Housing Finance Ltd 22JUL2020
8.60% LIC Housing Finance Ltd 29JUL2020
8.75% LIC Housing Finance Ltd 21DEC2020
8.80% LIC Housing Finance Ltd 24DEC2020
9.05% Housing Development Finance Corporation
20NOV2023
Total investments in non-convertible debentures
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
Units
2,500
500
2,500
3,000
850
1,500
–
–
1,250
–
–
500
Amount
262
55
264
315
88
163
–
–
132
–
–
54
Units
2,500
–
2,500
–
–
–
500
3,000
1,250
500
2,000
500
5,00,000
–
–
900
1,00,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
–
2,950
1,250
–
–
–
–
–
327
130
–
–
–
–
100
2,950
1,250
1,000
1,750
1,000
650
Amount
254
–
259
–
–
–
52
312
131
53
215
54
49
106
323
129
107
187
101
66
500
46,550
56
4,827
–
22,350
–
2,398
The balances held in government securities as at March 31, 2021 and March 31, 2020 are as follows:
in ` crore, except as otherwise stated
Particulars
Face value `
5.79% Government of India 11MAY2030
5.85% Government of India 01DEC2030
6.45% Government of India 07OCT2029
7.17% Government of India 8JAN2028
7.26% Government of India 14JAN2029
7.57% Government of India 17JUN2033
7.88% Government of India 19MAR2030
8.08% Government of India 02AUG2022
8.24% Government of India 15FEB2027
8.32% Government of India 02AUG2032
Total investments in government securities
Units
4,10,000
10,000
10,000
5,000
10,000 17,00,000
10,000
–
10,000 13,50,000
9,50,000
10,000
2,50,000
10,000
2,00,000
10,000
2,00,000
10,000
1,00,000
10,000
51,65,000
As at March 31, 2021
Amount
402
5
1,760
–
1,439
1,039
273
213
222
114
5,467
As at March 31, 2020
Amount
–
–
–
132
532
–
–
–
–
–
664
Units
–
–
–
1,25,000
5,00,000
–
–
–
–
–
6,25,000
The balances held in certificates of deposit as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Axis Bank
Bank of Baroda
Oriental Bank of Commerce
Total investments in certificates of deposit
Face Value `
1,00,000
1,00,000
1,00,000
in ` crore, except as otherwise stated
As at March 31, 2021
Amount
–
–
–
–
Units
–
–
–
–
As at March 31, 2020
Amount
240
638
248
1,126
Units
25,000
65,000
25,000
1,15,000
Infosys Annual Report 2020-21
Consolidated financial statements | 245
2.5 Loans
Particulars
Non-current
Unsecured, considered good
Other loans
Loans to employees
Unsecured, considered doubtful
Other loans
Loans to employees
Less: Allowance for doubtful loans
to employees
Total non-current loans
Current
Unsecured, considered good
Other loans
Loans to employees
Total current loans
Total loans
2.6 Other financial assets
Particulars
Non-current
Security deposits(1)
Unbilled revenues(1)#
Rental deposits(1)
Net investment in sublease of right
of use asset (Refer to Note 2.19)(1)
Restricted deposits(1)*
Others(1)
Total non-current other financial
assets
Current
Security deposits(1)
Rental deposits(1)
Restricted deposits(1)*
Unbilled revenues(1)#
Interest accrued but not due(1)
Foreign currency forward and
options contracts(2)(3)
Net investment in sublease of right
of use asset (Refer to Note 2.19)(1)
Others(1)
Total current other financial assets
Total other financial assets
(1) Financial assets carried at amortized cost
(2) Financial assets carried at fair value
through other comprehensive income
(3) Financial assets carried at fair value
through profit or loss
in ` crore
As at March 31,
2021
2020
32
32
28
60
28
32
21
21
30
51
30
21
159
159
191
239
239
260
in ` crore
As at March 31,
2021
2020
49
399
217
350
42
84
50
–
221
398
55
13
1,141
737
6
30
2,016
3,173
620
8
27
1,795
2,796
474
188
62
38
339
6,410
7,551
7,363
25
163
35
260
5,457
6,194
6,132
9
53
* Restricted deposits represent deposits with financial institutions to settle
employee-related obligations as and when they arise during the normal
course of business.
# Classified as financial asset as right to consideration is unconditional
and is due only after a passage of time.
2.7 Trade receivables
Particulars
Current
Unsecured
Considered good
Considered doubtful
Less: Allowance for credit loss
Total trade receivables(1)
(1) Includes dues from companies where
directors are interested
2.8 Cash and cash equivalents
Particulars
Balances with banks
In current and deposit accounts
Cash on hand
Others
Deposits with financial
institutions
Total cash and cash equivalents
Balances with banks in unpaid dividend
accounts
Deposit with more than 12 months maturity
Balances with banks held as margin money
deposits against guarantees
in ` crore
As at March 31,
2021
2020
19,294
619
19,913
619
19,294
18,487
557
19,044
557
18,487
–
–
in ` crore
As at March 31,
2021
2020
20,069
–
12,288
–
4,645
24,714
6,361
18,649
33
13,659
30
6,895
71
71
Cash and cash equivalents as at March 31, 2021 and
March 31, 2020 include restricted cash and bank balances of
` 504 crore and ` 396 crore, respectively. The restrictions are
primarily on account of bank balances held by irrevocable
trusts controlled by the Company and bank balances held as
margin money deposits against guarantees.
The deposits maintained by the Group with banks and
financial institutions comprise time deposits, which can be
withdrawn by the Group at any point without prior notice or
penalty on the principal.
2.9 Other assets
Particulars
Non-current
Capital advances
Advances other than capital
advances
Others
in ` crore
As at March 31,
2021
2020
141
310
Withholding taxes and others
Unbilled revenues(1)
Defined benefit plan assets (Refer
to Note 2.20.1)
Prepaid expenses
Deferred contract cost
Total non-current other assets
705
195
777
–
19
78
143
1,281
151
87
101
1,426
246 | Consolidated financial statements
Infosys Annual Report 2020-21
Particulars
Current
Advances other than capital
advances
Payment to vendors for supply of
goods
Others
Unbilled revenues(1)
Withholding taxes and others
Prepaid expenses
Deferred contract cost
Other receivables
Total current other assets
Total other assets
As at March 31,
2021
2020
141
145
4,354
2,091
1,160
65
3
7,814
9,095
4,325
1,583
968
33
28
7,082
8,508
(1) Classified as non-financial asset as the contractual right to
consideration is dependent on completion of contractual milestones
Withholding taxes and others primarily consist of input tax
credits and Cenvat recoverable from the Government of India.
2.10 Financial instruments
Accounting policy
2.10.1 Initial recognition
The Group recognizes financial assets and financial liabilities
when it becomes a party to the contractual provisions of the
instrument. All financial assets and liabilities are recognized
at fair value on initial recognition, except for trade receivables
which are initially measured at transaction price. Transaction
costs that are directly attributable to the acquisition or issue
of financial assets and financial liabilities, that are not at fair
value through profit or loss, are added to the fair value on
initial recognition. Regular way purchase and sale of financial
assets are accounted for at trade date.
2.10.2 Subsequent measurement
a. Non-derivative financial instruments
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if
it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
(ii) Financial assets at
comprehensive income
through other
fair value
A financial asset is subsequently measured at fair value through
other comprehensive income if it is held within a business model
whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding. The Group has made an irrevocable election for its
investments which are classified as equity instruments to present
the subsequent changes in fair value in other comprehensive
income based on its business model.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above
categories is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized
cost using the effective interest method, except for
contingent consideration and financial liability under option
arrangements recognized in a business combination which is
subsequently measured at fair value through profit or loss.
For trade and other payables maturing within one year from
the Balance Sheet date, the carrying amounts approximate
the fair value due to the short maturity of these instruments.
b. Derivative financial instruments
The Group holds derivative financial instruments such as
foreign exchange forward and options contracts to mitigate the
risk of changes in exchange rates on foreign currency exposures.
The counterparty for these contracts is generally a bank.
(i) Financial assets or financial liabilities, at fair value
through profit or loss
This category has derivative financial assets or liabilities
which are not designated as hedges.
Although the Group believes that these derivatives constitute
hedges from an economic perspective, they may not qualify
for hedge accounting under Ind AS 109, Financial Instruments.
Any derivative that is either not designated as hedge, or
is so designated but is ineffective as per Ind AS 109, is
categorized as a financial asset or financial liability, at fair value
through profit or loss.
Derivatives not designated as hedges are recognized initially
at fair value and attributable transaction costs are recognized
in net profit in the Consolidated Statement of Profit and
Loss when incurred. Subsequent to initial recognition, these
derivatives are measured at fair value through profit or loss
and the resulting exchange gains or losses are included in
other income. Assets / liabilities in this category are presented
as current assets / current liabilities if they are either held for
trading or are expected to be realized within 12 months after
the Balance Sheet date.
(ii) Cash flow hedge
The Group designates certain foreign exchange forward and
options contracts as cash flow hedges to mitigate the risk of
foreign exchange exposure on highly probable forecast cash
transactions. When a derivative is designated as a cash flow
hedging instrument, the effective portion of changes in the fair
value of the derivative is recognized in other comprehensive
income and accumulated in the cash flow hedging reserve. Any
ineffective portion of changes in the fair value of the derivative
is recognized immediately in the net profit in the Consolidated
Statement of Profit and Loss. If the hedging instrument no longer
meets the criteria for hedge accounting, then hedge accounting
is discontinued prospectively. If the hedging instrument expires
or is sold, terminated or exercised, the cumulative gain or loss
on the hedging instrument recognized in cash flow hedging
reserve till the period the hedge was effective remains in cash
flow hedging reserve until the forecasted transaction occurs.
The cumulative gain or loss previously recognized in the cash
flow hedging reserve is transferred to the net profit in the
Consolidated Statement of Profit and Loss upon the occurrence
of the related forecasted transaction. If the forecasted transaction
is no longer expected to occur, then the amount accumulated
in cash flow hedging reserve is reclassified to net profit in the
Consolidated Statement of Profit and Loss.
Infosys Annual Report 2020-21
Consolidated financial statements | 247
2.10.3 Derecognition of financial instruments
The Group derecognizes a financial asset when the contractual
rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Group's
Balance Sheet when the obligation specified in the contract
is discharged or cancelled or expires.
2.10.4 Fair value of financial instruments
In determining the fair value of its financial instruments,
the Group uses a variety of methods and assumptions that
are based on market conditions and risks existing at each
reporting date. The methods used to determine fair value
include discounted cash flow analysis, available quoted
market prices and dealer quotes. All methods of assessing
fair value result in general approximation of value, and such
value may never actually be realized.
Refer to table 'Financial instruments by category' below for the
disclosure on carrying value and fair value of financial assets
and liabilities. For financial assets and liabilities maturing
within one year from the Balance Sheet date and which are
not carried at fair value, the carrying amounts approximates
fair value due to the short maturity of those instruments.
2.10.5 Impairment
The Group recognizes loss allowances using the expected
credit loss (ECL) model for the financial assets and unbilled
revenue which are not fair valued through profit or loss. Loss
allowance for trade receivables and unbilled revenues with no
significant financing component is measured at an amount
equal to lifetime ECL. For all other financial assets, ECLs are
measured at an amount equal to the 12-month ECL, unless
there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL.
The amount of ECLs (or reversal) that is required to adjust
the loss allowance at the reporting date to the amount that
is required to be recognized is recognized as an impairment
gain or loss in Consolidated Statement of Profit and Loss.
Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2021 are as follows:
Particulars
Amortized
cost
Assets
Cash and cash equivalents
(Refer to Note 2.8)
Investments (Refer to Note 2.4)
Equity and preference securities
Compulsorily convertible debentures
Tax-free bonds and government bonds
Liquid mutual fund units
Non-convertible debentures
Government securities
Other investments
Trade receivables
(Refer to Note 2.7)
Loans (Refer to Note 2.5)
Other financials assets (Refer to Note 2.6)(3)
Total
Liabilities
Trade payables
Lease liabilities
(Refer to Note 2.19)
Financial liability under option
arrangements
Other financial liabilities
(Refer to Note 2.12)
Total
24,714
–
–
2,152
–
–
–
–
19,294
191
7,363
53,714
2,645
5,325
–
9,877
17,847
in ` crore
Total
carrying
value
Total
fair
value
Financial assets /
liabilities at fair value
through profit or loss
Designated
upon
initial
recognition
Mandatory
Financial assets /
liabilities at fair value
through OCI
Equity
instruments
designated
upon initial
recognition
Mandatory
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
11
7
–
1,500
–
–
74
–
–
163
1,755
–
–
693
217
910
–
167
–
–
–
–
–
–
–
–
–
167
–
–
–
–
–
– 24,714 24,714
–
–
–
–
4,827
5,467
–
178
7
178
7
2,152 2,536(1)
1,500
1,500
4,827
4,827
5,467
5,467
74
74
– 19,294 19,294
191
191
–
7,551 7,459(2)
25
10,319 65,955 66,247
–
2,645
2,645
–
5,325
5,325
–
693
693
– 10,094 10,094
– 18,757 18,757
(1) On account of fair value changes including interest accrued
(2) Excludes interest accrued on tax-free bonds and government bonds carried at amortized cost of ` 92 crore
(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
248 | Consolidated financial statements
Infosys Annual Report 2020-21
The carrying value and fair value of financial instruments by categories as at March 31, 2020 were as follows:
Particulars
Amortised
cost
Financial assets /
liabilities at fair value
through profit or loss
Designated
upon initial
recognition
Mandatory
Financial assets /
liabilities at fair value
through OCI
Equity
instruments
designated
upon initial
recognition
Mandatory
in ` crore
Total fair
value
Total
carrying
value
Assets
Cash and cash equivalents
(Refer to Note 2.8)
Investments (Refer to Note 2.4)
Equity and preference securities
Tax-free bonds and government
bonds
Liquid mutual fund units
Non-convertible debentures
Government securities
Certificates of deposit
Other investments
Fixed maturity plan securities
Trade receivables
(Refer to Note 2.7)
Loans (Refer to Note 2.5)
Other financials assets
(Refer to Note 2.6)(3)
Total
Liabilities
Trade payables
Lease liabilities
(Refer to Note 2.19)
Financial liability under option
arrangements
Other financial liabilities
(Refer to Note 2.12)
Total
18,649
–
1,846
–
–
–
–
–
–
18,487
260
6,132
45,374
2,852
4,633
–
7,966
15,451
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9
–
2,104
–
–
–
54
489
–
–
–
102
–
–
–
–
–
–
–
–
–
–
–
–
–
2,398
664
1,126
–
–
18,649
18,649
111
111
1,846
2,104
2,398
664
1,126
54
489
2,144(1)
2,104
2,398
664
1,126
54
489
–
–
18,487
260
18,487
260
53
2,709
–
102
9
4,197
6,194
52,382
6,112(2)
52,598
–
–
621
811
1,432
–
–
–
–
–
–
–
–
2,852
2,852
4,633
4,633
621
621
20
20
8,797
16,903
8,797
16,903
(1) On account of fair value changes including interest accrued
(2) Excludes interest accrued on tax-free bonds and government bonds carried at amortized cost of ` 82 crore
(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
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
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2021 is as follows:
in ` crore
Particulars
As at March
31, 2021
Fair value measurement at end of
the reporting period using
Level 1
Level 3
Level 2
Assets
Investments in liquid mutual funds (Refer to Note 2.4)
Investments in tax-free bonds (Refer to Note 2.4)
Investments in government bonds (Refer to Note 2.4)
Investments in non-convertible debentures (Refer to Note 2.4)
Investment in government securities (Refer to Note 2.4)
Investments in equity instruments (Refer to Note 2.4)
Investments in preference securities (Refer to Note 2.4)
Infosys Annual Report 2020-21
1,500
2,513
23
4,827
5,467
2
176
1,500
1,352
23
4,532
5,467
–
–
–
1,161
–
295
–
–
–
–
–
–
–
–
2
176
Consolidated financial statements | 249
Particulars
Investments in compulsorily convertible debentures (Refer to Note 2.4)
Other investments (Refer to Note 2.4)
Derivative financial instruments – gain on outstanding foreign exchange
forward and options contracts (Refer to Note 2.6)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange
forward and options contracts (Refer to Note 2.12)
Financial liability under option arrangements
Liability towards contingent consideration (Refer to Note 2.12)(1)
(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5%.
As at March
31, 2021
7
74
Fair value measurement at end of
the reporting period using
Level 1
–
–
Level 2
–
–
Level 3
7
74
188
–
188
–
56
693
161
–
–
–
56
–
–
–
693
161
During the year ended March 31, 2021, tax-free bonds and non-convertible debentures of ` 107 crore were transferred
from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, tax-free bonds and
non-convertible debentures of ` 1,177 crore was transferred from Level 1 to Level 2 of fair value hierarchy, since these were
valued based on market observable inputs.
The fair value hierarchy of assets and liabilities as at March 31, 2020 was as follows:
Particulars
Assets
Investments in liquid mutual funds (Refer to Note 2.4)
Investments in tax-free bonds (Refer to Note 2.4)
Investments in government bonds (Refer to Note 2.4)
Investments in non-convertible debentures (Refer to Note 2.4)
Investments in certificates of deposit (Refer to Note 2.4)
Investment in government securities (Refer to Note 2.4)
Investments in fixed maturity plan securities (Refer to Note 2.4)
Investments in equity instruments (Refer to Note 2.4)
Investments in preference securities (Refer to Note 2.4)
Other investments (Refer to Note 2.4)
Derivative financial instruments – gain on outstanding foreign exchange
forward and option contracts (Refer to Note 2.6)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange
forward and option contracts (Refer to Note 2.12)
Financial liability under option arrangements
Liability towards contingent consideration (Refer to Note 2.12)(1)
(1) Discount rate pertaining to contingent consideration ranges from 8% to 14%.
in ` crore
As at March
31, 2020
Fair value measurement at end of
the reporting period using
Level 2
Level 1
Level 3
2,104
2,122
22
2,398
1,126
664
489
1
110
54
62
491
621
340
2,104
1,960
22
2,032
–
664
–
–
–
–
–
–
–
–
–
162
–
366
1,126
–
489
–
–
–
–
–
–
–
–
–
–
1
110
54
62
–
491
–
–
–
621
340
During the year ended March 31, 2020, tax-free bonds and
non-convertible debentures of ` 662 crore were transferred
from Level 2 to Level 1 of fair value hierarchy, since these were
valued based on quoted price and ` 50 crore was transferred
from Level 1 to Level 2 of fair value hierarchy, since these were
valued based on market observable inputs.
A one percentage point change in the unobservable inputs
used in the fair valuation of Level 3 assets and liabilities does
not have a significant impact in its value.
The majority of investments of the Group are fair-valued based
on Level 1 or Level 2 inputs. These investments primarily
include investment in liquid mutual fund units, fixed maturity
plan securities, certificates of deposit, commercial papers,
quoted bonds issued by government and quasi-government
organizations and non-convertible debentures.
Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial
risks: market risk, credit risk and liquidity risk. The Group’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
Group is foreign exchange risk. The Group uses derivative
financial instruments to mitigate foreign exchange related risk
exposures. The Group’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.
250 | Consolidated financial statements
Infosys Annual Report 2020-21
Market risk
The Group operates internationally and a major portion of the business is transacted in several currencies and consequently,
the Group is exposed to foreign exchange risk through its sales and services in the United States and elsewhere, and purchases
from overseas suppliers in various foreign currencies. The Group holds derivative financial instruments such as foreign
exchange forward and options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The
Group is also exposed to foreign exchange risk arising on inter-company transaction in foreign currencies. The exchange rate
between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially
in the future. Consequently, the results of the Group’s operations are adversely affected as the rupee appreciates / depreciates
against these currencies.
The foreign currency risk from financial assets and liabilities as at March 31, 2021 is as follows:
Particulars
Net financial assets
Net financial liabilities
Total
US Dollar
15,647
(6,997)
8,650
Euro UK Pound
Sterling
1,324
(622)
702
3,407
(2,570)
837
Australian
Dollar
1,216
(802)
414
Other
currencies
1,696
(1,368)
328
The foreign currency risk from financial assets and liabilities as at March 31, 2020 was as follows:
Particulars
Net financial assets
Net financial liabilities
Total
US Dollar
14,900
(6,087)
8,813
Euro UK Pound
Sterling
1,388
(667)
721
2,858
(1,747)
1,111
Australian
Dollar
825
(331)
494
Other
currencies
1,707
(1,013)
694
in ` crore
Total
23,290
(12,359)
10,931
in ` crore
Total
21,678
(9,846)
11,832
Sensitivity analysis between Indian rupee and US Dollar
Particulars
Impact on the Group’s incremental operating margins
Year ended March 31,
2021
0.47%
2020
0.45%
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.
Derivative financial instruments
The Group holds derivative financial instruments such as foreign currency forward and options contracts to mitigate the
risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.
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 details in respect of outstanding foreign currency forward and options contracts are as follows:
Particulars
Derivatives designated as cash flow hedges
Option contracts
In Australian Dollar
In Euro
In UK Pound Sterling
Other derivatives
Forward contracts
In Australian Dollar
In Brazilian Real
In Canadian Dollar
In Chinese Yuan
In Czech Koruna
In Euro
In New Zealand Dollar
In Norwegian Krone
In Poland Zloty
In Romanian Leu
In Singapore Dollar
As at March 31, 2021
In million
In ` crore
As at March 31, 2020
In million
In ` crore
92
165
35
–
–
33
105
313
171
16
25
–
10
241
512
1,415
353
–
–
194
117
103
1,466
82
21
–
17
1,419
110
120
21
2
57
21
210
–
191
16
40
92
20
177
507
993
196
9
102
117
226
–
1,581
72
29
165
33
954
Infosys Annual Report 2020-21
Consolidated financial statements | 251
Particulars
In Swedish Krona
In Swiss Franc
In US Dollar
In Philippine Peso
In UK Pound Sterling
Option contracts
In Euro
In US Dollar
Total forwards and options contracts
The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based
on the remaining period as at the Balance Sheet date:
Particulars
Not later than one month
Later than one month and
not later than three months
Later than three months and
not later than one year
in ` crore
As at March 31,
2021
6,159
2020
5,687
8,074
8,727
3,915
18,148
3,206
17,620
During the year ended March 31, 2021 and March 31, 2020,
the Group has designated certain foreign exchange forward
and options contracts as cash flow hedges to mitigate the risk
of foreign exchange exposure on highly probable forecast cash
transactions. The related hedge transactions for balance in
cash flow hedges as of March 31, 2021 are expected to occur
and will be reclassified to the Consolidated Statement of Profit
and Loss within three months.
The Group determines the existence of an economic
relationship between the hedging instrument and the hedged
item based on the currency, amount and timing of its forecasted
cash flows. Hedge effectiveness is determined at the inception
of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic
relationship exists between the hedged item and hedging
instrument, including whether the hedging instrument is
expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer
optimal but the risk management objective remains unchanged
and the hedge continues to qualify for hedge accounting,
the hedge relationship will be rebalanced by adjusting either
the volume of the hedging instrument or the volume of the
As at March 31, 2021
In million
–
27
1,139
800
28
In ` crore
–
213
8,325
121
282
As at March 31, 2020
In million
50
1
1,048
–
50
In ` crore
37
9
7,925
–
469
65
404
557
2,951
18,148
–
555
–
4,196
17,620
hedged item so that the hedge ratio aligns with the ratio used
for risk management purposes. Any hedge ineffectiveness is
calculated and accounted for in the Consolidated Statement
of Profit and Loss at the time of the hedge relationship
rebalancing. If the hedge ratio for risk management purposes
is no longer optimal but the risk management objective
remains unchanged and the hedge continues to qualify for
hedge accounting, the hedge relationship will be rebalanced
by adjusting either the volume of the hedging instrument
or the volume of the hedged item so that the hedge ratio
aligns with the ratio used for risk management purposes.
Any hedge ineffectiveness is calculated and accounted for in
the Consolidated Statement of Profit and Loss at the time of
the hedge relationship rebalancing.
The reconciliation of cash flow hedge reserve for the years
ended March 31, 2021 and March 31, 2020 is as follows:
Particulars
Gain / (loss)
Balance at the beginning of
the period
Gain / (loss) recognized in
other comprehensive income
during the period
Amount reclassified to profit
or loss during the period
Tax impact on above
Balance at the end of the
period
in ` crore
Year ended March 31,
2021
2020
(15)
21
(126)
160
(9)
10
25
(73)
12
(15)
The Group offsets a financial asset and a financial liability
when it currently has a legally enforceable right to set off
the recognized amounts and the Group intends either to
settle on a net basis, or to realize the asset and settle the
liability simultaneously.
The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows:
Particulars
Gross amount of recognized financial asset / liability
Amount set off
Net amount presented in Balance Sheet
in ` crore
As at March 31, 2021
Derivative
financial asset
201
(13)
188
Derivative
financial liability
(69)
13
(56)
As at March 31, 2020
Derivative
financial asset
86
(24)
62
Derivative
financial liability
(515)
24
(491)
252 | Consolidated financial statements
Infosys Annual Report 2020-21
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 ` 19,294 crore and
` 18,487 crore as at March 31, 2021 and March 31, 2020,
respectively, and unbilled revenues amounting to ` 8,121
crore and ` 7,121 crore as at March 31, 2021 and March 31,
2020, respectively. Trade receivables and unbilled revenues
are typically unsecured and are derived from revenues
from customers primarily located in the US. Credit risk has
always been managed by the Group through credit approvals,
establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Group grants credit
terms in the normal course of business. The Group uses the
expected credit loss model to assess any required allowances;
and uses a provision matrix to compute the expected credit
loss allowance for trade receivables and unbilled revenues.
This matrix takes into account credit reports and other related
credit information to the extent available.
The Group’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. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.
The details in respect of percentage of revenues generated
from the top customer and the top 10 customers are as follows:
in %
Particulars
Year ended March 31,
Revenue from top customer
Revenue from top 10 customers
2021
3.2
18.1
2020
3.1
19.2
Credit risk exposure
The Group’s credit period generally ranges from 30-75 days.
The allowance for lifetime ECL on customer balances for the
years ended March 31, 2021 and March 31, 2020 was ` 184
crore and ` 161 crore, respectively.
The movement in credit loss allowance on customer
balance is as follows:
in ` crore
Particulars
Year ended March 31,
Balance at the beginning
Impairment loss recognized
Write-offs
Translation differences
Balance at the end
2021
705
184
(123)
(14)
752
2020
627
161
(100)
17
705
The gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
Credit exposure
in ` crore except otherwise stated
Particulars
Trade receivables
Unbilled revenues
As at March 31,
2021
19,294
8,121
2020
18,487
7,121
Days sales outstanding was 71 days and 69 days as of
March 31, 2021 and March 31, 2020, respectively.
Credit risk on cash and cash equivalents is limited as the Group
generally invests in deposits with banks and financial institutions
with high ratings assigned by international and domestic credit
rating agencies. Ratings are monitored periodically and the
Group has considered the latest available credit ratings as at
the date of approval of these Consolidated financial statements.
Majority of investments of the Group are fair valued based
on Level 1 or Level 2 inputs. These investments primarily
include investment in liquid mutual fund units, fixed maturity
plan securities, certificates of deposit, commercial papers,
quoted bonds issued by government and quasi-government
organizations and non-convertible debentures. The Group
invests after considering counterparty risks based on multiple
criteria including Tier I Capital, Capital Adequacy Ratio, Credit
Rating, Profitability, NPA levels and deposit base of banks and
financial institutions. These risks are monitored regularly as per
its risk management program.
Liquidity risk
Liquidity risk is defined as the risk that the Group will not be
able to settle or meet its obligations on time.
The Group’s principal sources of liquidity are cash and
cash equivalents and the cash flow that is generated from
operations. The Group has no outstanding borrowings.
The Group believes that the working capital is sufficient to
meet its current requirements.
As at March 31, 2021, the Group had a working capital
of ` 36,868 crore including cash and cash equivalents of
` 24,714 crore and current investments of ` 2,342 crore. As at
March 31, 2020, the Group had a working capital of ` 33,720
crore including cash and cash equivalents of ` 18,649 crore
and current investments of ` 4,655 crore.
As at March 31, 2021 and March 31, 2020, the outstanding
compensated absences were ` 2,117 crore and ` 1,870
crore, respectively, which have been substantially funded.
Accordingly, no liquidity risk is perceived.
The details of the contractual maturities of significant financial liabilities as at March 31, 2021 are as follows:
Particulars
Trade payables
Other financial liabilities (excluding liability towards
contingent consideration) (Refer to Note 2.12)
Financial liability under option arrangements
Liability towards contingent consideration on an
undiscounted basis (Refer to Note 2.12)
Less than 1 year
2,645
1-2 years
–
2-4 years
–
4-7 years
–
9,239
–
76
411
615
67
197
78
38
30
–
–
in ` crore
Total
2,645
9,877
693
181
Infosys Annual Report 2020-21
Consolidated financial statements | 253
The details of the contractual maturities of significant financial liabilities as at March 31, 2020 were as follows:
Particulars
Trade payables
Other financial liabilities (excluding liability towards
contingent consideration) (Refer to Note 2.12)
Financial liability under option arrangements
Liability towards contingent consideration on an
undiscounted basis (Refer to Note 2.12)
Less than 1 year
2,852
1-2 years
–
2-4 years
–
4-7 years
–
7,939
–
225
22
–
75
5
621
67
–
–
–
in ` crore
Total
2,852
7,966
621
367
2.11 Equity
Accounting policy
Ordinary shares
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issuance of new ordinary shares,
share options and buyback are recognized as a deduction
from equity, net of any tax effects.
Treasury shares
When any entity within the Group purchases the Company’s
ordinary shares, the consideration paid including any directly
attributable incremental cost is presented as a deduction
from total equity, until they are cancelled, sold or reissued.
When treasury shares are sold or reissued subsequently, the
amount received is recognized as an increase in equity, and the
resulting surplus or deficit on the transaction is transferred
to / from the securities premium.
Description of reserves
Retained earnings
Retained earnings represent the amount of accumulated
earnings of the Group.
Securities premium
The amount received in excess of the par value has been
classified as securities premium.
Share options outstanding account
The share options outstanding account is used to record the
fair value of equity-settled, share-based payment transactions
with employees. The amounts recorded in share options
outstanding account are transferred to securities premium
upon exercise of stock options and transferred to general
reserve on account of stock options not exercised by employees.
Special Economic Zone Re-investment Reserve
The Special Economic Zone Re-investment Reserve has been
created out of the profit of the eligible SEZ unit in terms of
the provisions of Sec 10AA (1)(ii) of the Income-tax Act,
1961. The reserve should be utilized by the Company for
acquiring new plant and machinery for the purpose of its
business in terms of the provisions of the Sec 10AA (2) of the
Income-tax Act, 1961.
Capital redemption reserve
In accordance with Section 69 of the Companies Act, 2013,
the Company creates capital redemption reserve equal to the
nominal value of the shares bought back as an appropriation
from general reserve.
Other components of equity
Other components of equity include currency translation,
remeasurement of net defined benefit liability / asset, equity
instruments fair valued through other comprehensive
income, changes on fair valuation of investments and
changes in fair value of derivatives designated as cash flow
hedges, net of taxes.
Currency translation reserve
The exchange differences arising from the translation of
financial statements of foreign subsidiaries with functional
currency other than the Indian rupees is recognized in other
comprehensive income and is presented within equity.
Cash flow hedge reserve
When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive
income and accumulated in the cash flow hedging reserve.
The cumulative gain or loss previously recognized in the
cash flow hedging reserve is transferred to the Consolidated
Statement of Profit and Loss upon the occurrence of the
related forecasted transaction.
Share capital
Particulars
in ` crore, except as otherwise stated
As at March 31,
2021
2020
Authorized
Equity shares, ` 5 par value
480,00,00,000 (480,00,00,000)
equity shares
Issued, subscribed and paid-up
Equity shares, ` 5 par value(1)
424,51,46,114 (424,07,53,210)
equity shares fully paid-up(2)
2,400
2,400
2,124
2,122
2,124
2,122
Note: Forfeited shares amounted to ` 1,500 (` 1,500)
(1) Refer to Note 2.21 for details of basic and diluted shares.
(2) Net of treasury shares 1,55,14,732 (1,82,39,356)
The Company has only one class of shares referred to as
equity shares having a par value of ` 5. Each holder of equity
shares is entitled to one vote per share. The equity shares
represented by American Depositary Shares (ADSs) carry
similar rights to voting and dividends as the other equity
shares. Each ADS represents one underlying equity share.
254 | Consolidated financial statements
Infosys Annual Report 2020-21
In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive any of the remaining
assets of the Company in proportion to the number of equity
shares held by the shareholders, after distribution of all
preferential amounts. However, no such preferential amounts
exist currently, other than the amounts held by irrevocable
controlled trusts. For irrevocable controlled trusts, the corpus
would be settled in favour of the beneficiaries.
For details of shares reserved for issue under the employee
stock option plan of the Company, refer to the note below.
In the period of five years immediately preceding March 31, 2021:
Bonus issue
The Company has allotted 218,41,91,490 and 114,84,72,332
fully-paid-up shares of face value ` 5 each during the quarter
ended September 30, 2018 and June 30, 2015, respectively,
pursuant to bonus issue approved by the shareholders through
postal ballot. The bonus shares were issued by capitalization
of profits transferred from general reserve. Bonus share of
one equity share for every equity share held, and a bonus
issue, viz., a stock dividend of one ADS for every ADS held,
respectively, has been allotted. Consequently, the ratio of
equity shares underlying the ADSs held by an American
Depositary Receipt holder remains unchanged.
The bonus shares once allotted shall rank pari passu in all
respects and carry the same rights as the existing equity
shareholders and shall be entitled to participate in full, in
any dividend and other corporate action, recommended and
declared after the new equity shares are allotted.
Capital Allocation Policy and buyback
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over
a five-year period through a combination of semi-annual
dividends and / or share buyback and / or special dividends,
subject to applicable laws and requisite approvals, if any.
Free cash flow is defined as net cash provided by operating
activities less capital expenditure as per the Consolidated
Statement of Cash Flows prepared under Ind AS. Dividend
and buyback include applicable taxes.
Proposed buyback announced in April 2021
In line with the Capital Allocation Policy, the Board, at its
meeting held on April 14, 2021, approved the buyback of
equity shares, from the open market route through the Indian
stock exchanges, amounting to ` 9,200 crore (Maximum
Buyback Size, excluding buyback tax) at a price not exceeding
` 1,750 per share (Maximum Buyback Price), subject to
shareholders’ approval in the ensuing Annual General Meeting.
Buyback completed in August 2019
Based on the postal ballot that concluded on March 12, 2019,
the shareholders approved the buyback of equity shares from
the open market route through Indian stock exchanges of
up to ` 8,260 crore at a price not exceeding ` 800 per share.
The buyback was offered to all eligible equity shareholders
of the Company (other than the Promoters, the Promoter
Group and Persons in Control of the Company) under the
open market route through the stock exchange. The buyback
of equity shares through the stock exchange commenced on
March 20, 2019 and was completed on August 26, 2019.
During this buyback period, the Company had purchased
and extinguished a total of 11,05,19,266 equity shares from
the stock exchanges at an average buyback price of ` 747 per
equity share comprising 2.53% of the pre-buyback paid-up
equity share capital of the Company. The buyback resulted in
a cash outflow of ` 8,260 crore (excluding transaction costs).
The Company funded the buyback from its free reserves.
In accordance with Section 69 of the Companies Act, 2013,
as at March 31, 2020, the Company has created ‘Capital
Redemption Reserve’ of ` 55 crore equal to the nominal
value of the above shares bought back as an appropriation
from general reserve.
The Company’s objective when managing capital is to
safeguard its ability to continue as a going concern and to
maintain or achieve an optimal capital structure so as to
maximize shareholder value. In order to maintain or achieve
an optimal capital structure, the Company may adjust the
amount of dividend payment, return capital to shareholders,
issue new shares or buy back issued shares. As at March 31,
2021, the Company has only one class of equity shares and
has no debt. Consequent to the above capital structure there
are no externally imposed capital requirements.
Dividend
The final dividend on shares is recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company's Board of Directors. Income tax consequences
of dividends on financial instruments classified as equity
will be recognized according to where the entity originally
recognized those past transactions or events that generated
distributable profits.
The Company declares and pays dividends in Indian rupees.
The Finance Act 2020 has repealed the Dividend Distribution
Tax (DDT). Companies are now required to pay / distribute
dividend after deducting applicable taxes. The remittance of
dividends outside India is also subject to withholding tax
at applicable rates.
Amount of per share dividend recognized as distribution to
equity shareholders:
in `
Particulars
Year ended March 31,
Final dividend for fiscal 2019
Interim dividend for fiscal 2020
Final dividend for fiscal 2020
Interim dividend for fiscal 2021
2021
–
–
9.50
12.00
2020
10.50
8.00
–
–
During the year ended March 31, 2021, on account of the
final dividend for fiscal 2020 and interim dividend for fiscal
2021, the Company has incurred a net cash outflow of ` 9,120
crore (excluding dividend paid on treasury shares).
The Board of Directors, at its meeting on April 14, 2021,
recommended a final dividend of ` 15 per equity share for
the financial year ended March 31, 2021. This payment is
subject to the approval of shareholders in the Annual General
Meeting of the Company to be held on June 19, 2021 and if
approved, would result in a net cash outflow of approximately
` 6,368 crore (excluding dividend paid on treasury shares).
Infosys Annual Report 2020-21
Consolidated financial statements | 255
The details of shareholder holding more than 5% shares as at March 31, 2021 and March 31, 2020 are as follows:
Name of the shareholder
As at March 31, 2021
As at March 31, 2020
Number of shares
% held Number of shares
% held
Deutsche Bank Trust Company Americas (Depository of
ADRs – legal ownership)
Life Insurance Corporation of India
73,24,89,890
25,00,63,497
17.19
5.87
73,93,01,182
28,20,08,863
17.36
6.62
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2021 and March 31,
2020 are as follows:
Particulars
As at the beginning of the period
Add: Shares issued on exercise of employee stock options
Less: Shares bought back
As at the end of the period
in ` crore, except as stated otherwise
As at March 31, 2021
As at March 31, 2020
Number of shares
424,07,53,210
43,92,904
–
424,51,46,114
Amount Number of shares
433,59,54,462
26,66,014
9,78,67,266
424,07,53,210
2,122
2
–
2,124
Amount
2,170
1
49
2,122
Employee Stock Option Plan (ESOP)
Accounting policy
The Group recognizes compensation expense relating to
share-based payments in net profit based on estimated fair
values of the awards on the grant date. The estimated fair
value of awards is recognized as an expense in the Statement
of Profit and Loss on a straight-line basis over the requisite
service period for each separately vesting portion of the award
as if the award was in substance, multiple awards with a
corresponding increase to share options outstanding account.
Infosys Expanded Stock Ownership Program
2019 (“the 2019 Plan”)
On June 22, 2019, pursuant to the approval by the shareholders
in the Annual General Meeting, the Board has been authorized
to introduce, offer, issue and provide share-based incentives to
eligible employees of the Company and its subsidiaries under
the 2019 Plan. The maximum number of shares under the 2019
Plan shall not exceed 5,00,00,000 equity shares. To implement
the 2019 Plan, up to 4,50,00,000 equity shares may be issued
by way of secondary acquisition of shares by Infosys Expanded
Stock Ownership Trust. The Restricted Stock Units (RSUs)
granted under the 2019 Plan shall vest based on the achievement
of defined annual performance parameters as determined by
the administrator (nomination and remuneration committee).
The performance parameters will be based on a combination of
relative Total Shareholder Return (TSR) against selected industry
peers and certain broader market domestic and global indices
and operating performance metrics of the Company as decided
by the administrator. Each of the above performance parameters
will be distinct for the purposes of calculation of quantity of
shares to vest based on performance. These instruments will
generally vest between a minimum of one to a maximum of three
years from the grant date.
2015 Stock Incentive Compensation Plan (“the 2015 Plan”)
On March 31, 2016, pursuant to the approval by the shareholders
through postal ballot, the Board was authorized to introduce,
offer, issue and allot share-based incentives to eligible employees
of the Company and its subsidiaries under the 2015 Plan. The
maximum number of shares under the 2015 Plan shall not exceed
2,40,38,883 equity shares (this includes 1,12,23,576 equity
shares which are held by the trust towards the 2011 RSU Plan
("the 2011 Plan") as at March 31, 2016). The Company expects
to grant the instruments under the 2015 Plan over the period of
four to seven years. The plan numbers mentioned above would
further be adjusted for the September 2018 bonus issue.
The equity-settled and cash-settled RSUs and stock options
would vest generally over a period of four years and shall be
exercisable within the period as approved by the nomination and
remuneration committee. The exercise price of the RSUs will be
equal to the par value of the shares and the exercise price of the
stock options would be the market price as on the date of grant.
Controlled trust holds 1,55,14,732 and 1,82,39,356 shares as
at March 31, 2021 and March 31, 2020, respectively, under the
2015 Plan. Out of these shares, 2,00,000 equity shares each
have been earmarked for welfare activities of the employees as
at March 31, 2021 and March 31, 2020.
The summary of grants during the years ended March 31, 2021 and March 31, 2020 is as follows:
Particulars
Equity-settled RSU
Key Managerial Personnel (KMP)
Employees other than KMP
Cash-settled RSU
KMP
Employees other than KMP
Total grants
256 | Consolidated financial statements
2019 Plan
Year ended March 31,
2015 Plan
Year ended March 31,
2021
2020
2021
2020
3,13,808
12,82,600
15,96,408
3,56,793
17.34,500
20,91,293
4,57,151
22.03,460
26,60,611
5,07,896
33,46,280
38,54,176
–
–
–
15,96,408
–
–
–
20,91,293
–
1,15,250
1,15,250
27,75,861
1,80,400
4,75,740
6,56,140
45,10,316
Infosys Annual Report 2020-21
Notes on grants to KMP
CEO & MD
Under the 2015 Plan:
In accordance with the employee agreement that has been
approved by the shareholders, the CEO is eligible to receive
an annual grant of RSUs of fair value ` 3.25 crore which will
vest over time in three equal annual installments upon the
completion of each year of service from the respective grant
date. Accordingly, an annual time-based grant of 25,775 RSUs
was made effective February 1, 2021 for fiscal 2021. Though
the annual time-based grants for the remaining employment
term ending on March 31, 2023 have not been granted
as of March 31, 2021, since the service commencement
date precedes the grant date, the Company has recorded
employment stock compensation expense in accordance with
Ind AS 102, Share-based Payment.
The Board, on April 20, 2020, based on the recommendations
of the nomination and remuneration committee, in accordance
with the terms of his employment agreement, approved the
grant of performance-based RSUs of fair value of ` 13 crore for
fiscal 2021 under the 2015 Plan. These RSUs will vest in line
with the employment agreement based on the achievement
of certain performance targets. Accordingly, 1,92,964
performance-based RSUs were granted effective May 2, 2020.
Under the 2019 Plan:
The Board, on April 20, 2020, based on the recommendations
of the nomination and remuneration committee, approved
performance-based grant of RSUs amounting to ` 10 crore for
fiscal 2021 under the 2019 Plan. These RSUs will vest in line
with the employment agreement based on the achievement
of certain performance targets. Accordingly, 1,48,434
performance-based RSUs were granted effective May 2, 2020.
COO and Whole-time Director
Under the 2019 Plan:
The Board, on April 20, 2020, based on the recommendations
of the nomination and remuneration committee, approved
performance-based grant of RSUs amounting to ` 4 crore for
fiscal 2021 under the 2019 Plan. These RSUs will vest in line
with the employment agreement based on the achievement
of certain performance targets. Accordingly, 59,374
performance-based RSUs were granted effective May 2, 2020.
Other KMP
Under the 2015 Plan:
On April 20, 2020, based on the recommendations of the
nomination and remuneration committee, in accordance
with employment agreements, the Board approved
performance-based grants of 11,133 RSUs to other KMP
under the 2015 Plan. The grants were made effective May 2,
2020. The performance-based RSUs will vest over three years
based on certain performance targets.
On January 13, 2021, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grants of 13,879 RSUs to other KMP under the
2015 Plan. The grants were made effective February 1, 2021.
These RSUs will vest over four years.
On March 30, 2021, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grants of 2,13,400 RSUs to other KMP under the
2015 Plan. The grants were made effective March 31, 2021.
These RSUs will vest over four years.
Under the 2019 Plan:
On March 30, 2021, based on the recommendations of the
nomination and remuneration committee, the Board approved
performance-based grants of 1,06,000 RSUs to other KMP
under the 2019 Plan. The grants were made effective
March 31, 2021. These RSUs will vest over three years based
on the achievement of certain performance targets.
The break-up of employee stock compensation
expense is as follows:
Particulars
Granted to
KMP
Employees other than KMP
Total(1)
(1) Cash-settled stock compensation
expense included above
in ` crore
Year ended March 31,
2021
2020
76
257
333
80
56
193
249
11
Share-based payment arrangements that were modified
during the year ended March 31, 2020:
During the year ended March 31, 2020, the Company issued stock
appreciation rights as replacement for outstanding ADS-settled
RSU and ESOP awards. The replacement was pursuant to SEBI
Circular ‘Framework for issue of Depository Receipts’ dated
October 10, 2019 which prohibited companies to allot ADSs
to Indian residents and non-resident Indians. The awards were
granted after necessary approvals from the nomination and
remuneration committee. All other terms and conditions of the
replaced awards remain the same as the original award.
The replacement awards was accounted as a modification
and the fair value on the date of modification of ` 57 crore
is recognized as financial liability with a corresponding
adjustment to equity.
Share-based payment arrangements that were modified
during the year ended March 31, 2021:
During the year ended March 31, 2021, the Company issued
ADS-settled RSU and ESOP awards as replacement for
outstanding stock appreciation rights awards. The replacement
was pursuant to SEBI Circular ‘Framework for issue of
Depository Receipts – Clarifications’ dated December 18,
2020, which allows non-resident Indians to hold depository
reciepts. The awards were granted after necessary approvals
from the nomination and remuneration committee. All other
terms and conditions of the replaced awards remain the same
as the original award.
The replacement awards was accounted as a modification
and the fair value on the date of modification of ` 85 crore
is recognized as equity with a corresponding adjustment to
financial liability.
Infosys Annual Report 2020-21
Consolidated financial statements | 257
The activity in the 2015 and 2019 Plan for equity-settled, share-based payment transactions during the years ended March 31,
2021 and March 31, 2020 is as follows:
Particulars
2015 Plan: RSU
Outstanding at the beginning
Granted
Exercised
Modification to equity-settled awards
Modification to cash-settled awards
Forfeited and expired
Outstanding at the end
Exercisable at the end
2015 Plan: Employee Stock Options
(ESOPs)
Outstanding at the beginning
Granted
Exercised
Modification to equity-settled options
Modification to cash-settled awards
Forfeited and expired
Outstanding at the end
Exercisable at the end
2019 Plan: RSUs
Outstanding at the beginning
Granted
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
Year ended March 31, 2021
Year ended March 31, 2020
Shares arising
out of options
Weighted average
exercise price (`)
Shares arising
out of options
Weighted average
exercise price (`)
87,80,898
26,60,611
37,83,462
8,71,900
–
4,82,707
80,47,240
1,51,685
11,00,330
–
2,39,272
2,03,026
–
14,628
10,49,456
10,02,130
20,91,293
15,96,408
3,70,170
2,66,958
30,50,573
2,33,050
3.96
5.00
3.55
–
–
4.13
4.52
3.36
539
–
534
–
–
566
535
536
5.00
5.00
5.00
5.00
5.00
5.00
91,81,198
38,54,176
25,61,218
–
10,61,820
6,31,438
87,80,898
3,92,185
16,23,176
–
1,04,796
–
3,51,550
66,500
11,00,330
7,80,358
–
20,91,293
–
–
20,91,293
–
3.13
5.00
2.95
–
–
3.29
3.96
2.54
516
–
516
–
–
528
539
543
–
5.00
–
–
5.00
–
During the years ended March 31, 2021 and March 31, 2020, the weighted average share price of options exercised under the
2015 Plan on the date of exercise was ` 1,097 and ` 751, respectively.
During the years ended March 31, 2021 and March 31, 2020, the weighted average share price of options exercised under the
2019 Plan on the date of exercise was ` 1,166 and nil, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2021 is as follows:
Range of exercise prices per share (`)
2019 Plan – Options outstanding
2015 Plan – Options outstanding
0-5 (RSU)
450-600 (ESOP)
No. of
shares
arising out
of options
30,50,573
–
30,50,573
Weighted
average
remaining
contractual life
1.48
–
1.48
Weighted
average
exercise
price (`)
5.00
–
5.00
No. of
shares
arising out
of options
80,47,240
10,49,456
90,96,696
Weighted
average
remaining
contractual life
1.67
1.83
1.69
Weighted
average
exercise
price (`)
4.52
535
66
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2020 was as follows:
Range of exercise prices per share (`)
2019 plan – Options outstanding
2015 plan – Options outstanding
0-5 (RSU)
450-600 (ESOP)
No. of
shares
arising out
of options
20,91,293
–
20,91,293
Weighted
average
remaining
contractual life
1.76
–
1.76
Weighted
average
exercise
price (`)
5.00
–
5.00
No. of
shares
arising out
of options
87,80,898
11,00,330
98,81,228
Weighted
average
remaining
contractual life
1.59
3.48
1.80
Weighted
average
exercise
price (`)
3.96
539
64
As at March 31, 2021 and March 31, 2020, 3,87,088 and 17,56,521 cash-settled options were outstanding, respectively.
The carrying value of liability towards cash-settled, share-based payments was ` 7 crore and ` 48 crore as at March 31, 2021
and March 31, 2020, respectively.
258 | Consolidated financial statements
Infosys Annual Report 2020-21
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options
and Monte Carlo simulation model is used for TSR-based options. The inputs to the model include the share price at date of
grant, exercise price, expected volatility, expected dividends, expected term and the risk-free rate of interest. Expected volatility
during the expected term of the options is based on historical volatility of the observed market prices of the Company’s publicly
traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative
company have been modelled based on historical movements in the market prices of their publicly traded equity shares during
a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the
indices as a whole or between each entity in the peer group.
The fair value of each equity-settled award is estimated on the date of grant using the following assumptions:
Particulars
For options granted in
Weighted average share price (`) / ($ ADS)
Exercise price (`) / ($ ADS)
Expected volatility (%)
Expected life of the option (years)
Expected dividends (%)
Risk-free interest rate (%)
Weighted average fair value as on grant date (`) / ($ ADS)
Fiscal 2021 –
Equity shares
– RSU
1,253
5.00
30-35
1-4
2-3
4-5
1,124
Fiscal 2021 –
ADS – RSU
18.46
0.07
30-36
1-4
2-3
0.1-0.3
16.19
Fiscal 2020 –
Equity shares
– RSU
728
5.00
22-30
1-4
2-3
6-7
607
Fiscal 2020 –
ADS – RSU
10.52
0.07
22-26
1-4
2-3
1-3
7.84
The expected life of the RSU / ESOP is estimated based on the vesting term and contractual term of the RSU / ESOP, as well as
expected exercise behavior of the employee who receives the RSU / ESOP.
2.12 Other financial liabilities
Particulars
Particulars
Non-current
Others
Accrued compensation to
employees(1)
Accrued expenses(1)
Compensated absences
Financial liability under option
arrangements(2)
Payable for acquisition of business
– Contingent consideration(2)
Other payables(1)
Total non-current other financial
liabilities
Current
Unpaid dividends(1)
Others
Accrued compensation to
employees(1)
Accrued expenses(1)
Retention monies(1)
Payable for acquisition of business
– Contingent consideration(2)
Payable by controlled trusts(1)
Compensated absences
Foreign currency forward and
options contracts(2)(3)
Capital creditors(1)
Other payables(1)
Total current other financial
liabilities
Total other financial liabilities
in ` crore
As at March 31,
2021
2020
–
569
97
22
–
38
693
621
86
69
121
5
1,514
807
33
30
4,019
4,475
13
75
199
2,020
56
371
129
2,958
3,921
72
219
188
1,832
491
280
490
11,390
12,904
10,481
11,288
(1) Financial liability carried at amortized
cost
(2) Financial liability carried at fair value
through profit or loss
(3) Financial liability carried at fair value
through other comprehensive income
Contingent consideration on undiscounted
basis
2.13 Other liabilities
Particulars
Non-current
Others
Withholding taxes and others
Deferred income – government
grants
Accrued defined benefit plan
liability
Deferred income
Others
Total non-current other liabilities
Current
Unearned revenue
Client deposit
Others
Withholding taxes and others
Accrued defined benefit plan
liability
Deferred income – government
grants
Others
Total current other liabilities
Total other liabilities
As at March 31,
2021
2020
9,877
7,966
910
1,432
–
20
181
367
in ` crore
As at March 31,
2021
2020
364
57
324
17
1
763
–
43
213
21
2
279
4,050
–
2,990
18
2,170
1,759
6
67
3
4
6,233
6,996
2
6
4,842
5,121
Infosys Annual Report 2020-21
Consolidated financial statements | 259
2.14 Provisions
2.15 Income taxes
Accounting policy
A provision is recognized if, as a result of a past event, the
Group has a present legal or constructive obligation that is
reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current
market assessments of the time, value of money and the risks
specific to the liability.
a. Post-sales client support
The Group provides its clients with a fixed-period, post-sales
support on its fixed-price, fixed-timeframe contracts.
Costs associated with such support services are accrued
at the time related revenues are recorded and included in
Consolidated Statement of Profit and Loss. The Group
estimates such costs based on historical experience and
estimates are reviewed on a periodic basis for any material
changes in assumptions and likelihood of occurrence.
b. Onerous contracts
Provisions for onerous contracts are recognized when
the expected benefits to be derived by the Group from a
contract are lower than the unavoidable costs of meeting
the future obligations under the contract. The provision is
measured at the present value of the lower of the expected
cost of terminating the contract and the expected net
cost of continuing with the contract. Before a provision is
established, the Group recognizes any impairment loss on
the assets associated with that contract.
The provision for post-sales client support and other
provisions are as follows:
Particulars
Current
Others
in ` crore
As at March 31,
2021
2020
Post-sales client support and
other provisions
Total provisions
713
713
572
572
The movement in the provision for post-sales client support
and other provisions is as follows:
Particulars
Balance at the beginning
Provision recognized / (reversed)
Provision utilized
Exchange difference
Balance at the end
in ` crore
Year ended
March 31, 2021
572
308
(145)
(22)
713
Provision for post-sales client support and other provisions
represents cost associated with providing post-sales support
services which are accrued at the time of recognition of revenues
and are expected to be utilized over a period of one year.
Accounting policy
Income tax expense comprises current and deferred income
tax. Income tax expense is recognized in net profit in the
Consolidated Statement of Profit and Loss except to the extent
that it relates to items recognized directly in equity, in which
case it is recognized in other comprehensive income. Current
income tax for current and prior periods is recognized at the
amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been
enacted or substantively enacted by the Balance Sheet date.
Deferred income tax assets and liabilities are recognized for all
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements except when the deferred income tax arises from
the initial recognition of goodwill or an asset or liability in
a transaction that is not a business combination and affects
neither accounting nor taxable profit or loss at the time of the
transaction. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using
tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply
to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect
of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period
that includes the enactment or the substantive enactment
date. A deferred income tax asset is recognized to the extent
that it is probable that future taxable profit will be available
against which the deductible temporary differences and tax
losses can be utilized. Deferred income taxes are not provided
on the undistributed earnings of subsidiaries and branches
where it is expected that the earnings of the subsidiary or
branch will not be distributed in the foreseeable future.
The Group offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis,
or to realize the asset and settle the liability simultaneously.
Tax benefits of deductions earned on exercise of employee
share options in excess of compensation charged to income
are credited to securities premium.
Income tax expense in the Consolidated Statement of
Profit and Loss comprises:
in ` crore
Particulars
Year ended March 31,
Current taxes
Deferred taxes
Income tax expense
2021
6,672
533
7,205
2020
5,775
(407)
5,368
Income tax expense for the years ended March 31, 2021
and March 31, 2020 includes reversal (net of provisions)
of ` 348 crore and ` 379 crore, respectively. These reversals
pertain to prior periods primarily on account of adjudication
of certain disputed matters in favor of the Company and
upon filing of tax return, across various jurisdictions and
changes to tax regulations.
260 | Consolidated financial statements
Infosys Annual Report 2020-21
A reconciliation of the income tax provision to the amount
computed by applying the statutory income tax rate to the
income before income taxes is as follows:
in ` crore
Particulars
Year ended March 31,
Profit before income taxes
Enacted tax rates in India
Computed expected tax expense
Tax effect due to non-taxable
income for Indian tax purposes
Overseas taxes
Tax provision (reversals)
Effect of exempt non-operating
income
Effect of unrecognized deferred
tax assets
Effect of differential tax rates
Effect of non-deductible
expenses
Branch profit tax (net of credits)
Others
Income tax expense
2021
26,628
34.94%
9,305
(2,569)
732
(348)
2020
22,007
34.94%
7,691
(2,718)
728
(379)
(34)
(41)
10
(129)
148
(27)
117
7,205
53
(81)
120
(35)
30
5,368
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2021 and March 31, 2020 is 34.94% each.
The foreign tax expense is due to income taxes payable
overseas principally in the United States. In India, the Group
has benefited from certain tax incentives that the Government
of India had provided for export of software and services from
the units registered under the Special Economic Zones (SEZs)
Act, 2005. SEZ units which began the provision of services on
or after April 1, 2005 are eligible for a deduction of 100% of
profits or gains derived from the export of services for the first
five years from the financial year in which the unit commenced
the provision of services and 50% of such profits or gains for
a further five years. Up to 50% of such profits or gains is also
available for a further five years subject to creation of a Special
Economic Zone Re-investment Reserve out of the profit of the
eligible SEZ units and utilization of such reserve by the Group
for acquiring new plant and machinery for the purpose of its
business as per the provisions of the Income-tax Act, 1961.
Deferred income tax for the years ended March 31, 2021
and March 31, 2020 substantially relates to origination and
reversal of temporary differences.
Infosys is subject to a 15% Branch Profit Tax (BPT) in the
US to the extent its US branch’s net profit during the year is
greater than the increase in the net assets of the US branch
during the year, computed in accordance with the Internal
Revenue Code. As at March 31, 2021, Infosys’ US branch
net assets amounted to approximately ` 5,622 crore. As at
March 31, 2021, the Company has a deferred tax liability for
BPT of ` 145 crore (net of credits), as the Company estimates
that these branch profits are expected to be distributed in
the foreseeable future.
Deferred income tax liabilities have not been recognized on
temporary differences amounting to ` 9,670 crore and ` 8,386
crore as at March 31, 2021 and March 31, 2020, respectively,
associated with investments in subsidiaries and branches as
it is probable that the temporary differences will not reverse
in the foreseeable future.
Deferred income tax assets have not been recognized on
accumulated losses of ` 3,726 crore and ` 3,187 crore as
at March 31, 2021 and March 31, 2020, respectively, as it
is probable that future taxable profit will be not available
against which the unused tax losses can be utilized in
the foreseeable future.
The details of expiration of unused tax losses as at March 31,
2021 are as follows:
Year
2022
2023
2024
2025
2026
Thereafter
Total
in ` crore
As at March 31, 2021
68
206
135
112
137
3,068
3,726
The details of expiration of unused tax losses as at March 31,
2020 were as follows:
Year
2021
2022
2023
2024
2025
Thereafter
Total
in ` crore
As at March 31, 2020
83
142
209
172
121
2,460
3,187
The details of income tax assets and income tax liabilities as at March 31, 2021 and March 31, 2020 are as follows:
Particulars
Income tax assets
Current income tax liabilities
Net current income tax asset / (liability) at the end
in ` crore
As at March 31,
2021
5,811
2,146
3,665
2020
5,391
1,490
3,901
Infosys Annual Report 2020-21
Consolidated financial statements | 261
The gross movement in the current income tax asset / (liability) for the years ended March 31, 2021 and March 31, 2020 is as follows:
in ` crore
Particulars
Net current income tax asset / (liability) at the beginning
Translation differences
Income tax paid
Current income tax expense
Income tax benefit arising on exercise of stock options
Additions through business combination
Tax impact on buyback expenses
Income tax on other comprehensive income
Net current income tax asset / (liability) at the end
Year ended March 31,
2021
3,901
1
6,389
(6,672)
45
(3)
–
4
3,665
2020
5,176
(4)
4,550
(5,775)
9
(40)
4
(19)
3,901
The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2021 is as follows:
in ` crore
Particulars
Deferred income
tax assets /
(liabilities)
Property, plant
and equipment
Lease liabilities
Accrued
compensation to
employees
Trade receivables
Compensated
absences
Post-sales client
support
Credits related to
branch profits
Derivative
financial
instruments
Intangible assets
Intangibles arising
on business
combinations
Branch profit tax
SEZ Re-investment
Reserve
Others
Total deferred
income tax assets /
(liabilities)
Carrying value
as at April 1,
2020
Changes
through profit
and loss
Addition
through
business
combination
Changes
through OCI
Translation
difference
Carrying value
as of March 31,
2021
244
136
52
197
433
111
377
162
20
(426)
(555)
(82)
107
12
30
(10)
20
62
11
(11)
(210)
13
78
38
(531)
(35)
–
–
–
–
–
–
–
–
–
(23)
–
–
2
–
–
–
–
–
–
–
(9)
–
–
–
–
3
776
(533)
(21)
(6)
(1)
–
–
–
2
(1)
(11)
–
(2)
3
17
–
–
7
255
166
42
217
497
121
355
(57)
31
(368)
(500)
(613)
77
223
262 | Consolidated financial statements
Infosys Annual Report 2020-21
Particulars
The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2020 is as follows:
in ` crore
Carrying
value as
of March
31, 2020
Addition
through
business
combination
Impact on
account of
Ind AS 116
adoption
Carrying
value as
at April 1,
2019
Changes
through
profit and
loss
Changes
through
OCI
Translation
difference
Reclassification
Deferred income
tax assets /
(liabilities)
Property, plant
and equipment
Lease liabilities
Accrued
compensation to
employees
Trade receivables
Compensated
absences
Post-sales client
support
Credits related to
branch profits
Derivative
financial
instruments
Intangible assets
Intangibles arising
on business
combinations
Branch profit tax
SEZ Re-investment
Reserve
Others
Total deferred
income tax assets /
(liabilities)
262
–
(20)
76
31
176
397
104
340
23
21
35
7
14
(106)
16
255
1
1
–
–
–
–
–
–
–
–
(128)
(541)
–
149
44
22
(82)
11
(326)
–
–
9
–
–
–
–
–
–
–
12
–
–
–
–
(7)
–
52
–
–
–
–
–
–
–
–
–
–
(52)
–
6
–
–
–
–
–
–
–
–
–
–
–
1
2
244
136
(2)
–
1
–
52
197
433
111
23
377
1
3
162
20
(16)
(36)
(426)
(555)
–
(3)
(82)
107
700
407
(316)
5
–
6
(26)
776
The deferred income tax assets and liabilities are as follows:
in ` crore
Particulars
Deferred income tax assets after
set-off
Deferred income tax liabilities
after set-off
As at March 31,
2021
2020
1,098
1,744
(875)
(968)
Deferred tax assets and deferred tax liabilities have been offset
wherever the Group has a legally enforceable right to set off
current tax assets against current tax liabilities and where the
deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same taxation authority.
In assessing the reliability of deferred income tax assets, the
Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible.
The Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income, and tax
planning strategies in making this assessment. Based on the level
of historical taxable income and projections for future taxable
income over the periods in which the deferred income tax assets
are deductible, the Management believes that the Group will
realize the benefits of those deductible differences. The amount
of the deferred income tax assets considered realizable, however,
could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.
2.16 Revenue from operations
Accounting policy
The Group derives revenues primarily from IT services
comprising software development and related services,
maintenance, consulting and package implementation,
licensing of software products and platforms across the
Group’s core and digital offerings (together called as “software
related services”) and business process management services.
Contracts with customers are either on a time-and-material,
unit of work, fixed-price or on a fixed-timeframe basis.
Revenues from customer contracts are considered for recognition
and measurement when the contract has been approved by the
parties, in writing, to the contract, the parties to the contract
are committed to perform their respective obligations under
the contract, and the contract is legally enforceable. Revenue is
Infosys Annual Report 2020-21
Consolidated financial statements | 263
recognized upon transfer of control of promised products or
services (“performance obligations”) to customers in an amount
that reflects the consideration the Group has received or expects
to receive in exchange for these products or services (“transaction
price”). When there is uncertainty as to collectability, revenue
recognition is postponed until such uncertainty is resolved.
The Group assesses the services promised in a contract and
identifies distinct performance obligations in the contract.
The Group allocates the transaction price to each distinct
performance obligation based on the relative standalone selling
price. The price that is regularly charged for an item when sold
separately is the best evidence of its standalone selling price.
In the absence of such evidence, the primary method used to
estimate standalone selling price is the expected cost plus a
margin, under which the Group estimates the cost of satisfying
the performance obligation and then adds an appropriate
margin based on similar services.
The Group’s contracts may include variable consideration
including rebates, volume discounts and penalties. The Group
includes variable consideration as part of transaction price
when there is a basis to reasonably estimate the amount
of the variable consideration and when it is probable that a
significant reversal of cumulative revenue recognized will
not occur when the uncertainty associated with the variable
consideration is resolved.
Revenue on time-and-material and unit of work based
contracts, are recognized as the related services are performed.
Fixed-price maintenance revenue is recognized ratably either
on a straight-line basis when services are performed through
an indefinite number of repetitive acts over a specified period
or ratably using a percentage-of-completion method when the
pattern of benefits from the services rendered to the customer
and the Group’s costs to fulfil the contract is not even through
the period of contract because the services are generally discrete
in nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations
are satisfied over time is recognized using the percentage-of-
completion method. Efforts or costs expended are used to
determine progress towards completion as there is a direct
relationship between input and productivity. Progress towards
completion is measured as the ratio of costs or efforts incurred to
date (representing work performed) to the estimated total costs
or efforts. Estimates of transaction price and total costs or efforts
are continuously monitored over the term of the contracts and
are recognized in net profit in the period when these estimates
change or when the estimates are revised. Revenues and the
estimated total costs or efforts are subject to revision as the
contract progresses. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which such
losses become probable based on the estimated efforts or costs
to complete the contract.
The billing schedules agreed with customers include periodic
performance-based billing and / or milestone-based progress
billings. Revenues in excess of billing are classified as unbilled
revenue while billing in excess of revenues are classified as
contract liabilities (which we refer to as unearned revenues).
In arrangements for software development and related
services and maintenance services, by applying the revenue
recognition criteria for each distinct performance obligation,
the arrangements with customers generally meet the criteria
for considering software development and related services as
distinct performance obligations. For allocating the transaction
price, the Group measures the revenue in respect of each
performance obligation of a contract at its relative standalone
selling price. The price that is regularly charged for an item
when sold separately is the best evidence of its standalone
selling price. In cases where the Group is unable to determine
the standalone selling price, the Group uses the expected cost
plus margin approach in estimating the standalone selling
price. For software development and related services, the
performance obligations are satisfied as and when the services
are rendered since the customer generally obtains control of the
work as it progresses.
Revenue from licenses where the customer obtains a “right
to use” the licenses is recognized at the time the license
is made available to the customer. Revenue from licenses
where the customer obtains a “right to access” is recognized
over the access period.
Arrangements to deliver software products generally have
three elements: license, implementation and Annual Technical
Services (ATS).When implementation services are provided in
conjunction with the licensing arrangement and the license and
implementation have been identified as two distinct separate
performance obligations, the transaction price for such contracts
are allocated to each performance obligation of the contract
based on their relative standalone selling prices. In the absence
of standalone selling price for implementation, the Group
uses the expected cost plus margin approach in estimating the
standalone selling price. Where the license is required to be
substantially customized as part of the implementation service
the entire arrangement fee for license and implementation is
considered to be a single performance obligation and the revenue
is recognized using the percentage-of-completion method as
the implementation is performed. Revenue from client training,
support and other services arising due to the sale of software
products is recognized as the performance obligations are
satisfied. ATS revenue is recognized ratably on a straight line
basis over the period in which the services are rendered.
Contracts with customers includes subcontractor services or
third-party vendor equipment or software in certain integrated
services arrangements. In these types of arrangements, revenue
from sales of third-party vendor products or services is recorded
net of costs when the Group is acting as an agent between
the customer and the vendor, and gross when the Group is
the principal for the transaction. In doing so, the Group first
evaluates whether it controls the goods or service before it is
transferred to the customer. The Group considers whether
it has the primary obligation to fulfil the contract, inventory
risk, pricing discretion and other factors to determine whether
it controls the goods or service and therefore, is acting as a
principal or an agent.
The incremental costs of obtaining a contract (i.e. costs that
would not have been incurred if the contract had not been
obtained) are recognized as an asset if the Group expects
to recover them. Certain eligible, non-recurring costs (e.g.
set-up or transition or transformation costs) that do not
represent a separate performance obligation are recognized
as an asset when such costs (a) relate directly to the contract;
264 | Consolidated financial statements
Infosys Annual Report 2020-21
(b) generate or enhance resources of the Company that
will be used in satisfying the performance obligation in the
future; and (c) are expected to be recovered. Such capitalized
contract costs are amortized over the respective contract life
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates.
The Group presents revenues net of indirect taxes in its
Consolidated Statement of Profit and Loss.
The revenues from operations for the years ended March 31,
2021 and March 31, 2020 are as follows:
Particulars
Revenue from software services
Revenue from products and
platforms
Total revenue from operations
in ` crore
Year ended March 31,
2021
93,387
2020
85,260
7,085
1,00,472
5,531
90,791
The Group has evaluated the impact of COVID-19 resulting
from (i) the possibility of constraints to render services which
may require revision of estimations of costs to complete
the contract because of additional efforts; (ii) onerous
obligations; (iii) penalties relating to breaches of service level
agreements, and (iv) termination or deferment of contracts
by customers. The Group has concluded that the impact of
COVID-19 is not material based on these estimates. Due to
the nature of the pandemic, the Group continues to monitor
developments to identify significant uncertainties relating to
revenue in future periods.
Disaggregated revenue information
The table below presents disaggregated revenues from
contracts with customers by geography and offerings for
each of our business segments. The Group believes that this
disaggregation best depicts how the nature, amount, timing
and uncertainty of our revenues and cash flows are affected
by industry, market and other economic factors.
For the years ended March 31, 2021 and March 31, 2020:
Particulars
Financial
Services(1)
Retail(2) Communication(3)
Energy,
Utilities,
Resources
and Services
Manufacturing
Hi-
Tech
Life
Sciences
(4)
in ` crore
Others(5)
Total
Revenues by geography*
North America
Europe
India
Rest of the World
Total
Revenue by offerings
Digital
Core
Total
19,517
16,749
6,415
5,983
1,568
1,311
5,083
4,582
9,722
9,222
4,165
3,966
61
48
797
799
32,583 14,745
28,625 14,035
7,695
15,547
6,165
11,562
7,050
17,036
17,063
7,870
32,583 14,745
28,625 14,035
6,791
7,332
2,893
1,925
229
192
2,715
2,535
12,628
11,984
6,478
4,843
6,150
7,141
12,628
11,984
6,935
6,456
4,481
4,207
33
12
1,090
1,061
12,539
11,736
6,077
4,485
6,462
7,251
12,539
11,736
5,126 8,052
5,131 6,537
164
3,962
191
3,576
294
53
207
88
50
306
37
336
9,447 8,560
9,131 6,972
4,567 4,160
3,481 2,541
4,880 4,400
5,650 4,431
9,447 8,560
9,131 6,972
4,728
3,816
2,013
1,892
16
39
113
90
6,870
5,837
3,020
1,850
3,850
3,987
6,870
5,837
61,640
769
55,807
564
24,303
210
21,916
176
2,899
645
2,365
468
11,630
1,476
1,263
10,703
3,100 1,00,472
90,791
2,471
48,687
1,143
35,617
690
51,785
1,957
1,781
55,174
3,100 1,00,472
90,791
2,471
(1) Financial Services include enterprises in Financial Services and Insurance.
(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics.
(3) Communication includes enterprises in Communication, Telecom OEM and Media.
(4) Life Sciences includes enterprises in Life sciences and Healthcare.
(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in Public Services.
* Geographical revenues is based on the domicile of the customer.
Digital services
Digital services comprise service and solution offerings of the
Group that enable our clients to transform their businesses.
These include offerings that enhance customer experience,
leverage AI-based analytics and Big Data, engineer digital
products and IoT, modernize legacy technology systems,
migrate to cloud applications and implement advanced
cybersecurity systems.
Core services
Core services comprise traditional offerings of the Group that
have scaled and industrialized over a number of years. These
primarily include application management services, proprietary
application development services, independent validation
solutions, product engineering and management, infrastructure
management services, traditional enterprise application
implementation, and support and integration services.
Infosys Annual Report 2020-21
Consolidated financial statements | 265
Products and platforms
The Group also derives revenues from the sale of products
and platforms including Finacle® – core banking solution,
Edge Suite of products, Infosys NIA® – Artificial Intelligence
(AI) platform which applies next-generation AI and machine
learning, Panaya® platform, Skava® platform, Stater digital
platform, and Infosys McCamish – insurance platform.
The percentage of revenue from fixed-price contracts for
each of the years ended March 31, 2021 and March 31, 2020
is approximately 50%.
Trade receivables and contract balances
The timing of revenue recognition, billings and cash
collections results in receivables, unbilled revenue, and
unearned revenue on the Group’s Consolidated Balance
Sheet. Amounts are billed as work progresses in accordance
with agreed-upon contractual terms, either at periodic
intervals (e.g., monthly or quarterly) or upon achievement
of contractual milestones.
The Group’s receivables are rights to consideration that
are unconditional. Unbilled revenues comprising revenues
in excess of billings from time-and-material contracts and
fixed-price maintenance contracts are classified as financial
assets when the right to consideration is unconditional and
is due only after a passage of time.
Invoicing to the clients for other fixed-price contracts is based
on milestones as defined in the contract and therefore, the
timing of revenue recognition is different from the timing
of invoicing to the customers. Therefore, unbilled revenues
for other fixed-price contracts (contract asset) are classified
as non-financial asset because the right to consideration is
dependent on completion of contractual milestones.
Invoicing in excess of earnings are classified as unearned revenue.
Trade receivables and unbilled revenues are presented net of
impairment in the Consolidated Balance Sheet.
During the years ended March 31, 2021 and March 31, 2020,
the Company recognized revenue of ` 2,489 crore and ` 2,421
crore arising from opening unearned revenue as of April 1,
2020 and April 1, 2019, respectively.
During the years ended March 31, 2021 and March 31,
2020, ` 3,822 crore and ` 2,971 crore of unbilled revenue
pertaining to other fixed-price and fixed-timeframe contracts
as of April 1, 2020 and April 1, 2019, respectively, has been
reclassified to trade receivables upon billing to customers on
completion of milestones.
Performance obligations and remaining performance
obligations
The remaining performance obligation disclosure provides the
aggregate amount of the transaction price yet to be recognized
as at the end of the reporting period and an explanation as
to when the Group expects to recognize these amounts in
revenue. Applying the practical expedient as given in Ind AS
115, the Group has not disclosed the remaining performance
obligation-related disclosures for contracts where the revenue
recognized corresponds directly with the value to the customer
of the entity’s performance completed to date, typically those
contracts where invoicing is on time-and-material and unit-
of-work-based contracts. Remaining performance obligation
estimates are subject to change and are affected by several
factors, including terminations, changes in the scope of
contracts, periodic revalidations, adjustment for revenue that
has not materialized and adjustments for currency fluctuations.
The aggregate value of performance obligations that are
completely or partially unsatisfied as at March 31, 2021, other
than those meeting the exclusion criteria mentioned above,
is ` 69,890 crore. Out of this, the Group expects to recognize
revenue of around 50% within the next one year and the
remaining thereafter. The aggregate value of performance
obligations that are completely or partially unsatisfied as at
March 31, 2020 is ` 55,926 crore. The contracts can generally
be terminated by the customers and typically includes an
enforceable termination penalty payable by them. Generally,
customers have not terminated contracts without cause.
2.17 Other income, net
Accounting policy
Other income is comprised primarily of interest income,
dividend income, gain / loss on investment and exchange
gain / loss on forward and options contracts and on translation
of other assets and liabilities. Interest income is recognized
using the effective interest method. Dividend income is
recognized when the right to receive payment is established.
Foreign currency
Accounting policy
Functional currency
The functional currency of Infosys, Infosys BPM, controlled
trusts, EdgeVerve and Skava is the Indian rupee. The functional
currencies for other subsidiaries are their respective local
currencies. These financial statements are presented in Indian
rupees (rounded off to crore; one crore equals ten million).
Transactions and translations
Foreign-currency denominated monetary assets and liabilities
are translated into the relevant functional currency at
exchange rates in effect at the Balance Sheet date. The gains
or losses resulting from such translations are recognized in
the Consolidated Statement of Profit and Loss and reported
within exchange gains / (losses) on translation of assets and
liabilities, net, except when deferred in other comprehensive
income as qualifying cash flow hedges. Non-monetary assets
and non-monetary liabilities denominated in a foreign
currency and measured at fair value are translated at the
exchange rate prevalent at the date when the fair value
was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured
at historical cost are translated at the exchange rate prevalent
at the date of transaction. The related revenue and expense
are recognized using the same exchange rate.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue,
expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction.
266 | Consolidated financial statements
Infosys Annual Report 2020-21
The translation of financial statements of the foreign
subsidiaries to the presentation currency is performed
for assets and liabilities using the exchange rate in effect
at the Balance Sheet date and for revenue, expense and
cash-flow items using the average exchange rate for the
respective periods. The gains or losses resulting from such
translation are included in currency translation reserves
under other components of equity. When a subsidiary is
disposed of, in full, the relevant amount is transferred to
net profit in the Consolidated Statement of Profit and Loss.
However, when a change in the parent’s ownership does not
result in loss of control of a subsidiary, such changes are
recorded through equity.
Other comprehensive income, net of taxes, includes
translation differences on non-monetary financial assets
measured at fair value at the reporting date, such as equities
classified as financial instruments and measured at fair value
through other comprehensive income (FVOCI).
Goodwill and fair value adjustments arising on the acquisition
of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the exchange rate in effect at
the Balance Sheet date.
Government grant
The Group recognizes government grants only when there
is reasonable assurance that the conditions attached to them
shall be complied with, and the grants will be received.
Government grants related to assets are treated as deferred
income and are recognized in net profit in the Consolidated
Statement of Profit and Loss on a systematic and rational basis
over the useful life of the asset. Government grants related
to revenue are recognized on a systematic basis in net profit
in the Consolidated Statement of Profit and Loss over the
periods necessary to match them with the related costs which
they are intended to compensate.
Other income for the years ended March 31, 2021 and
March 31, 2020 is as follows:
in ` crore
Year ended March 31,
2021
2020
143
1,052
143
1,146
409
322
Particulars
Interest income on financial
assets carried at amortized cost:
Tax-free bonds and
government bonds
Deposit with bank and others
Interest income on financial
assets carried at fair value
through other comprehensive
income
Non-convertible debentures
and certificates of deposit,
commercial paper and
government securities
Income on investments carried
at fair value through profit or
loss
Dividend income on liquid
mutual funds
Particulars
Gain / (loss) on liquid mutual
funds and other investments
Income on investments carried
at fair value through other
comprehensive income
Interest income on income tax
refund
Exchange gains / (losses) on
foreign currency forward and
options contracts
Exchange gains / (losses)
on translation of assets and
liabilities
Miscellaneous income, net
Total other income
Year ended March 31,
2021
2020
74
183
82
4
41
259
556
(511)
(346)
216
2,201
1,023
195
2,803
2.18 Expenses
Particulars
Employee benefit expenses
Salaries including bonus
Contribution to provident
and other funds
Share-based payments to
employees (Refer to Note 2.11)
Staff welfare
Cost of software packages and
others
For own use
Third-party items bought for
service delivery to clients
Other expenses
Repairs and maintenance
Power and fuel
Brand and marketing
Short-term leases (Refer to
Note 2.19)
Rates and taxes
Consumables
Insurance
Provision for post-sales client
support and others
Commission to
non-whole-time directors
Impairment loss recognized /
(reversed) under expected
credit loss model
Contributions towards
Corporate Social
Responsibility(1)
Others
in ` crore
Year ended March 31,
2021
2020
53,616
49,252
1,337
1,107
333
255
55,541
249
279
50,887
1,221
1,035
3,002
4,223
1,300
143
355
82
256
111
134
39
6
1,668
2,703
1,480
229
528
89
193
100
90
–
8
190
172
439
231
3,286
385
382
3,656
11
2
(1) Includes ` 37 crore which the Company intends to spend in the future
relating to and in addition to the amounts spent in the prior years
Infosys Annual Report 2020-21
Consolidated financial statements | 267
2.19 Leases
Accounting policy
The Group as a lessee
The Group’s lease asset classes primarily consist of leases for
land, buildings and computers. The Group assesses whether
a contract contains a lease at the inception of a contract.
A contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period
of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified
asset, the Group assesses whether: (i) the contract involves
the use of an identified asset; (ii) the Group has substantially
all of the economic benefits from use of the asset through the
period of the lease, and (iii) the Group has the right to direct
the use of the asset.
At the date of commencement of the lease, the Group
recognizes a right-of-use (ROU) asset and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of 12 months or less
(short-term leases) and low-value leases. For these short-term
and low-value leases, the Group recognizes the lease
payments as an operating expense on a straight-line basis
over the term of the lease.
Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when
it is reasonably certain that they will be exercised.
The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. ROU assets are evaluated for
recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell and
the value-in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the cash generating
unit to which the asset belongs.
The lease liability is initially measured at amortized cost at
the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in
the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of the leases. Lease
liabilities are remeasured with a corresponding adjustment to
the related ROU asset if the Group changes its assessment if
whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented
in the Balance Sheet and lease payments have been classified
as financing cash flows.
The Group as a lessor
Leases for which the Group is a lessor is classified as a finance
or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the
lessee, the contract is classified as a finance lease. All other
leases are classified as operating leases.
When the Group is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by
reference to the ROU asset arising from the head lease.
For operating leases, rental income is recognized on a straight
line basis over the term of the relevant lease.
Transition
Effective April 1, 2019, the Group adopted Ind AS 116, Leases
using the modified retrospective method. On transition, the
adoption of the new standard resulted in recognition of ‘Right
of Use’ asset of ` 2,907 crore, ‘Net investment in sublease’ of
ROU asset of ` 430 crore and a lease liability of ` 3,598 crore.
The cumulative effect of applying the standard, amounting
to ` 40 crore, was debited to retained earnings, net of taxes.
The effect of this adoption is insignificant on the profit before
tax, profit for the period and earnings per share.
The changes in the carrying value of ROU assets for the year ended March 31, 2021 are as follows:
Particulars
Balance as of April 1, 2020
Additions(1)
Deletions
Depreciation
Translation difference
Balance as of March 31, 2021
(1) Net of lease incentives of ` 94 crore related to lease of buildings
Category of ROU asset
Land Buildings Vehicles Computers
42
626
140
7
–
–
(26)
(7)
5
4
161
630
3,485
1,234
(147)
(591)
3
3,984
15
13
–
(11)
2
19
in ` crore
Total
4,168
1,394
(147)
(635)
14
4,794
268 | Consolidated financial statements
Infosys Annual Report 2020-21
The changes in the carrying value of ROU assets for the year ended March 31, 2020 were as follows:
Particulars
Balance as of April 1, 2019
Reclassified on account of adoption of Ind AS 116
Additions(1)
Additions through business combination
Deletions
Depreciation
Translation difference
Balance as of March 31, 2020
(1) Net of lease incentives of ` 115 crore related to lease of buildings
Category of ROU asset
in ` crore
Total
Vehicles Computers
–
–
9
–
6
10
(1)
(9)
–
15
2,907
634
49 1,120
187
(134)
(563)
17
4,168
–
–
(8)
1
42
Land Buildings
2,898
–
1,064
177
(130)
(540)
16
3,485
–
634
1
–
(3)
(6)
–
626
The break-up of current and non- current
liabilities is as follows:
lease
The movement in the net investment in sublease of ROU
assets is as follows:
in ` crore
in ` crore
Particulars
As at March 31,
Particulars
Year ended March 31,
Current lease liabilities
Non-current lease liabilities
Total
2021
738
4,587
5,325
The movement in lease liabilities is as follows:
2020
619
4,014
4,633
in ` crore
Particulars
Year ended March 31,
Balance at the beginning
Additions
Interest income accrued during
the period
Lease receipts
Translation difference
Balance at the end
2021
433
3
14
(49)
(13)
388
2020
430
–
15
(46)
34
433
Balance at the beginning
Additions
Additions through business
combination (Refer to Note 2.1)
Deletions
Finance cost accrued during the
period
Payment of lease liabilities
Translation difference
Balance at the end
2021
4,633
1,494
–
(168)
176
(821)
11
5,325
2020
3,598
1,241
224
(145)
170
(639)
184
4,633
The details of the contractual maturities of lease liabilities on
an undiscounted basis are as follows:
in ` crore
The details of the contractual maturities of net investment in
sublease of ROU asset on an undiscounted basis are as follows:
in ` crore
Particulars
As At March 31
Less than one year
One to five years
More than five years
Total
2021
51
218
179
448
2020
50
217
244
511
Leases not yet commenced to which the Group is committed is
` 179 crore for a lease term ranging from five years to 10 years.
2.20 Employee benefits
Particulars
As At March 31
Accounting policy
Less than one year
One to five years
More than five years
Total
2021
867
3,011
2,239
6,117
2020
796
2,599
2,075
5,470
The Group does not face a significant liquidity risk
with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as
and when they fall due.
Rental expense recorded for short-term leases was ` 82 crore
and ` 89 crore for the years ended March 31, 2021 and
March 31, 2020, respectively.
The aggregate depreciation on ROU assets has been included
under depreciation and amortization expense in the
Consolidated Statement of Profit and Loss.
Gratuity and pensions
The Group provides for gratuity, a defined benefit retirement
plan (“the Gratuity Plan”) covering eligible employees
majorly of Infosys and its Indian subsidiaries. The Gratuity
Plan provides a lump-sum payment to vested employees
at retirement, death, incapacitation or termination of
employment, of an amount based on the respective
employee’s salary and the tenure of employment with the
Group. The Company contributes gratuity liabilities to the
Infosys Limited Employees’ Gratuity Fund Trust. In case of
Infosys BPM and EdgeVerve, contributions are made to the
Infosys BPM Employees’ Gratuity Fund Trust and EdgeVerve
Systems Limited Employees’ Gratuity Fund Trust, respectively.
Trustees administer contributions made to the Trusts and
contributions are invested in a scheme with the Life Insurance
Corporation of India as permitted by Indian law.
Infosys Annual Report 2020-21
Consolidated financial statements | 269
The Group operates a defined benefit pension plan in certain
overseas jurisdictions, in accordance with the local laws.
These plans are managed by third-party fund managers.
The plans provide for periodic payouts after retirement or
for a lump-sum payment as set out in rules of each fund and
includes death and disability benefits.
Liabilities with regard to these defined benefit plans
are determined by actuarial valuation, performed by an
independent actuary, at each Balance Sheet date using the
projected unit credit method. These defined benefit plans
expose the Group to actuarial risks, such as longevity risk,
currency risk, interest rate risk and market risk.
The Group recognizes the net obligation of a defined benefit
plan in its Balance Sheet as an asset or liability. Gains and
losses through re-measurements of the net defined benefit
liability / (asset) are recognized in other comprehensive
income and are not reclassified to profit or loss in subsequent
periods. The actual return of the portfolio of plan assets, in
excess of the yields computed by applying the discount rate
used to measure the defined benefit obligation is recognized
in other comprehensive income. The effect of any plan
amendments is recognized in net profit in the Consolidated
Statement of Profit and Loss.
Provident fund
Eligible employees of Infosys receive benefits from a provident
fund, which is a defined benefit plan. Both the eligible
employee and the Company make monthly contributions to
the provident fund plan equal to a specified percentage of
the covered employee's salary. The Company contributes a
portion to the Infosys Limited Employees’ Provident Fund
Trust. The trust invests in specific designated instruments as
permitted by Indian law. The remaining portion is contributed
to the government administered pension fund. The rate at
which the annual interest is payable to the beneficiaries by
the trust is being administered by the Government of India.
The Company has an obligation to make good the shortfall,
if any, between the return from the investments of the trust
and the notified interest rate.
In respect of Indian subsidiaries, eligible employees receive
benefits from a provident fund, which is a defined contribution
plan. Both the eligible employee and the respective companies
make monthly contributions to this provident fund plan
equal to a specified percentage of the covered employee's
salary. Amounts collected under the provident fund plan are
deposited in a government-administered provident fund.
The Companies have no further obligation to the plan beyond
its monthly contributions.
Superannuation
Certain employees of Infosys, Infosys BPM and EdgeVerve
are participants in a defined contribution plan. The Group
has no further obligations to the plan beyond its monthly
contributions, which are periodically contributed to a trust
fund, the corpus of which is invested with the Life Insurance
Corporation of India.
Compensated absences
The Group has a policy on compensated absences which
are both accumulating and non-accumulating in nature.
The expected cost of accumulating compensated absences
is determined by actuarial valuation performed by an
independent actuary at each Balance Sheet date using
projected unit credit method on the additional amount
expected to be paid / availed as a result of the unused
entitlement that has accumulated at the Balance Sheet date.
Expense on non-accumulating compensated absences is
recognized in the period in which the absences occur.
The Code on Social Security, 2020 (“the Code”) relating to
employee benefits during employment and post-employment
benefits received Presidential assent in September 2020.
The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect
has not been notified. The Company will assess the impact of
the Code when it comes into effect and will record any related
impact in the period the Code becomes effective.
2.20.1 Gratuity and pension
The funded status majorly of the Indian gratuity plans and the
amounts recognized in the Group’s financial statements as at
March 31, 2021 and March 31, 2020 is as follows:
Particulars
Change in benefit obligations
Benefit obligations at the
beginning
Service cost
Interest expense
Transfer of obligation
Remeasurements – Actuarial
(gains) / losses
Benefits paid
Translation difference
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the
beginning
Interest income
Remeasurements – Return on
plan assets excluding amounts
included in interest income
Contributions
Benefits paid
Fair value of plan assets at the
end
Funded status
in ` crore
As at March 31,
2021
2020
1,402
207
84
3
30
(98)
(4)
1,624
1,351
178
90
–
(79)
(141)
3
1,402
1,522
92
1,361
97
11
78
(93)
1,610
(14)
9
191
(136)
1,522
120
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Consolidated Statement of
Profit and Loss under employee benefit expense are as follows:
in ` crore
Particulars
Year ended March 31,
Service cost
Net interest on the net defined
benefit liability / (asset)
Net gratuity cost
2021
207
(8)
199
2020
178
(7)
171
270 | Consolidated financial statements
Infosys Annual Report 2020-21
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Consolidated Statement
of Other Comprehensive Income are as follows:
Particulars
Remeasurements of the net
defined benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets
excluding amounts included
in the net interest on the net
defined benefit liability / (asset)
Particulars
(Gain) / loss from change in
demographic assumptions
(Gain) / loss from change in
financial assumptions
(Gain) / loss from experience
adjustment
in ` crore
Year ended March 31,
2021
2020
30
(79)
(11)
19
(9)
(88)
in ` crore
Year ended March 31,
2021
2020
–
14
16
30
1
(57)
(23)
(79)
The weighted-average assumptions used to determine
benefit obligations as at March 31, 2021 and March 31,
2020 are as follows:
Particulars
As at March 31,
The sensitivity of significant assumptions used for valuation
of defined benefit obligation is as follows:
Impact from percentage point increase /
decrease in
Discount rate
Weighted average rate of increase in
compensation levels
in ` crore
As at March
31, 2021
78
70
Sensitivity to significant actuarial assumptions is computed by
varying one actuarial assumption used for the valuation of the
defined benefit obligation by one percentage, keeping all other
actuarial assumptions constant. In practice, this is not probable,
and changes in some of the assumptions may be correlated.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys Limited Employees’ Gratuity Fund Trust.
In case of Infosys BPM and EdgeVerve, contributions are
made to the Infosys BPM Employees’ Gratuity Fund Trust
and EdgeVerve Systems Limited Employees Gratuity Fund
Trust, respectively. Trustees administer contributions made to
the trust as at March 31, 2021 and March 31, 2020, the plan
assets have been primarily invested in insurer-managed funds.
The actual return on assets for the years ended March 31,
2021 and March 31, 2020 were ` 103 crore and ` 106
crore, respectively.
The Group expects to contribute ` 223 crore to the gratuity
trusts during fiscal 2022.
The maturity profile of defined benefit obligation is as follows:
in ` crore
Discount rate(1)
Weighted average rate of increase
in compensation levels(2)
Weighted average duration of
defined benefit obligation(3)
2021
6.1%
6.0%
2020
6.2%
6.0%
5.9 years
5.9 years
Within 1 year
1-2 year
2-3 year
3-4 year
4-5 year
5-10 years
246
246
255
273
282
1,352
The weighted-average assumptions used to determine net
periodic benefit cost for the years ended March 31, 2021
and March 31, 2020 are as follows:
Particulars
Year ended March 31,
Discount rate
Weighted average rate of
increase in compensation levels
2021
6.2%
6.0%
2020
7.1%
8.0%
Assumptions regarding future mortality experience are set in accordance
with the published statistics by the Life Insurance Corporation of India.
(1) In India, the market for high-quality corporate bonds being not
developed, the yield of government bonds is considered as the discount
rate. The tenure has been considered taking into account the past
long-term trend of employees’ average remaining service life which
reflects the average estimated term of the post-employment benefit
obligations.
(2) The average rate of increase in compensation levels is determined
by the Company, considering factors such as, the Company’s past
compensation revision trends and the Management’s estimate of future
salary increases.
(3) Attrition rate considered is the Management’s estimate based on the past
long-term trend of employee turnover in the Company.
The Group operates a defined benefit pension plan in certain
overseas jurisdictions, in accordance with local laws. As on
March 31, 2021, the defined benefit obligation (DBO) is ` 814
crore, fair value of plan assets is ` 690 crore, resulting in
recognition of a net DBO of ` 124 crore.
2.20.2 Provident fund
Infosys has an obligation to fund any shortfall on the yield
of the trust’s investments over the administered interest rates
on an annual basis. These administered rates are determined
annually predominantly considering the social rather than
economic factors. The actuary has provided a valuation for
provident fund liabilities on the basis of guidance issued by
the Actuarial Society of India.
Infosys Annual Report 2020-21
Consolidated financial statements | 271
The funded status of the defined benefit provident fund
plan of Infosys Limited and the amounts recognized in the
Company’s financial statements as at March 31, 2021 and
March 31, 2020 is as follows:
Particulars
Change in benefit obligations
Benefit obligations at the
beginning
Service cost – employer
contribution
Employee contribution
Interest expense
Actuarial (gains) / loss
Benefits paid
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the
beginning
Interest income
Remeasurements – Return on
plan assets excluding amounts
included in interest income
Contributions
Benefits paid
Fair value of plan assets at the end
Net liability
in ` crore
As at March 31,
2021
2020
7,366
5,989
423
816
606
(26)
(898)
8,287
407
857
561
216
(664)
7,366
7,117
596
5,989
561
125
1,200
(898)
8,140
(147)
(33)
1,264
(664)
7,117
(249)
The amounts for the years ended March 31, 2021 and
March 31, 2020 recognized in the Consolidated Statement
of Other Comprehensive Income are as follows:
The break-up of the plan assets into various categories as at
March 31, 2021 and March 31, 2020 are as follows:
Particulars
Central and state government
bonds
Public-sector undertakings and
private-sector bonds
Others
in %
As at March 31,
2021
2020
54
40
6
49
48
3
The asset allocation for plan assets is determined based on the
investment criteria prescribed under the relevant regulations.
As at March 31, 2021 the defined benefit obligation would
be affected by approximately ` 82 crore and ` 119 on
account of a 0.25% increase / decrease in the expected rate
of return on plan assets.
The Group contributed ` 665 crore and ` 639 crore to the
provident fund during the years ended March 31, 2021 and
March 31, 2020, respectively. The same has been recognized
in the Consolidated Statement of Profit and Loss under the
head employee benefit expense.
The provident plans are applicable only to employees drawing
a salary in Indian rupees.
2.20.3 Superannuation
The Group contributed ` 260 crore and ` 240 crore during
the years ended March 31, 2021 and March 31, 2020,
respectively and the same has been recognized in the
Consolidated Statement of Profit and Loss under the head
employee benefit expense.
Particulars
Year ended March 31,
2020
2021
Particulars
in ` crore
2.20.4 Employee benefit costs
Remeasurements of the net
defined benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)
(26)
216
Salaries and bonus(1)
Defined contribution plans
Defined benefit plans
(125)
(151)
33
249
(1) Includes employee stock compensation expense of ` 333 crore and
` 249 crore for the years ended March 31, 2021 and March 31, 2020,
respectively
The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows:
Particulars
Government of India (GOI) bond
yield(1)
Expected rate of return on plan
assets
Remaining term to maturity of
portfolio
Expected guaranteed interest rate
As at March 31,
2021
2020
6.10%
6.20%
8.00%
8.00%
6 years
8.50%
6 years
8.50%
(1) In India, the market for high-quality corporate bonds being not developed,
the yield of government bonds is considered as the discount rate. The
tenure has been considered taking into account the past long-term
trend of employees’ average remaining service life which reflects the
average estimated term of the post-employment benefit obligations.
2.21 Reconciliation of basic and diluted shares
used in computing earnings per share
Accounting policy
Basic earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the Company
by the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is
computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number
of equity shares considered for deriving basic earnings per
equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all
dilutive potential equity shares. The dilutive potential equity
shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value (i.e. the average
272 | Consolidated financial statements
Infosys Annual Report 2020-21
in ` crore
Year ended March 31,
2020
49,837
338
712
50,887
2021
54,274
358
909
55,541
market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of
the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share
splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.
The reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share is as follows:
Particulars
Basic earnings per equity share – weighted average number of equity shares outstanding(1)
Effect of dilutive common equivalent shares – share options outstanding
Diluted earnings per equity share – weighted average number of equity shares and
common equivalent shares outstanding
(1) Excludes treasury shares
Year ended March 31,
2021
424,24,16,665
83,15,802
2020
425,77,54,522
73,89,706
425,07,32,467
426,51,44,228
For the years ended March 31, 2021 and March 31, 2020, nil and 13,093 options to purchase equity shares had an anti-dilutive
effect, respectively.
2.22 Contingent liabilities and commitments
Accounting policy
Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation
that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
in ` crore
Particulars
Contingent liabilities
Claims against the Group, not acknowledged as debts(1)
[Amount paid to statutory authorities ` 6,105 crore (` 5,353 crore)]
Commitments
Estimated amount of contracts remaining to be executed on capital contracts and not
provided for (net of advances and deposits)(2)
Other commitments*
As at March 31,
2021
2020
4,061
3,583
733
42
1,365
61
* Uncalled capital pertaining to investments
(1) As at March 31, 2021, claims against the Group not acknowledged as debts in respect of income tax matters amounted to ` 3,462 crore. The claims against
the Group majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961. These claims are on account of
multiple issues of disallowances such as disallowance of profits earned from STP units and SEZ units, disallowance of deductions in respect of employment
of new employees under Section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to associated
enterprises held as liable for withholding of taxes. These matters are pending before various appellate authorities and the Management including its tax
advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group’s financial position
and results of operations. The amount paid to statutory authorities against the above tax claims amounted to ` 6,095 crore.
(2) Capital contracts primarily comprises commitments for infrastructure facilities and computer equipment.
Legal proceedings
The Group is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Group’s
Management reasonably expects that these legal actions, when ultimately concluded and determined, will not have a material
and adverse effect on the Group’s results of operations or financial condition.
2.23 Related party transactions
List of related parties
Name of subsidiaries
Infosys Technologies (China) Co. Limited (Infosys China)
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)
Infosys Technologies (Sweden) AB. (Infosys Sweden)
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)
Infosys Tecnologia DO Brasil LTDA. (Infosys Brasil)(18)
Infosys Nova Holdings LLC. (Infosys Nova)
EdgeVerve Systems Limited (EdgeVerve)
Infosys Austria GmbH
Skava Systems Pvt. Ltd. (Skava Systems)(44)
Country
China
Mexico
Sweden
China
Brazil
US
India
Austria
India
Holdings as at March 31
2020
100%
100%
100%
100%
–
100%
100%
100%
100%
2021
100%
100%
100%
100%
–
100%
100%
100%
100%
Infosys Annual Report 2020-21
Consolidated financial statements | 273
Name of subsidiaries
Kallidus Inc, (Kallidus)(45)
Infosys Chile SpA
Infosys Arabia Limited(2)
Infosys Consulting Ltda.(1)
Infosys CIS LLC(1) (19)
Infosys Luxembourg S.a.r.l
Infosys Americas Inc., (Infosys Americas)
Infosys Technologies (Australia) Pty. Limited (Infosys Australia)(3)
Infosys Public Services, Inc. USA (Infosys Public Services)
Infosys Canada Public Services Inc(48)
Infosys BPM Limited
Infosys (Czech Republic) Limited s.r.o.(4)
Infosys Poland, Sp z.o.o(4)
Infosys McCamish Systems LLC(4)
Portland Group Pty Ltd(4)
Infosys BPO Americas LLC.(4)
Infosys Consulting Holding AG (Infosys Lodestone)
Infosys Management Consulting Pty Limited(5)
Infosys Consulting AG(5)
Infosys Consulting GmbH(5)
Infosys Consulting S.R.L.(1)
Infosys Consulting SAS(5)
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.)(5)(44)
Infosys Consulting (Shanghai) Co., Ltd.(5)(44)
Infy Consulting Company Ltd(5)
Infy Consulting B.V.(5)
Infosys Consulting Sp. z.o.o(24)(32)
Lodestone Management Consultants Portugal, Unipessoal, Lda.(5)(37)
Infosys Consulting S.R.L.(5)
Infosys Consulting (Belgium) NV(6)
Panaya Inc. (Panaya)
Panaya Ltd.(7)
Panaya GmbH(7)
Panaya Japan Co. Ltd(7)(23)
Brilliant Basics Holdings Limited (Brilliant Basics)
Brilliant Basics Limited(8)
Brilliant Basics (MENA) DMCC(8)(25)
Infosys Consulting Pte Limited (Infosys Singapore)(1)
Infosys Middle East FZ LLC(9)
Fluido Oy(9)
Fluido Sweden AB (Extero)(12)
Fluido Norway A/S(12)
Fluido Denmark A/S(12)
Fluido Slovakia s.r.o(12)
Fluido Newco AB(12)(39)
Infosys Compaz Pte. Ltd (10)
Infosys South Africa (Pty) Ltd(9)
WongDoody Holding Company Inc. (WongDoody)(1)
WDW Communications, Inc(11)
WongDoody, Inc(11)
HIPUS Co., Ltd (formerly Hitachi procurement Service Co. Ltd)(10)(13)
Stater N.V.(10)(14)
Stater Nederland B.V.(15)
Stater Duitsland B.V.(15)(41)
Stater XXL B.V.(15)
HypoCasso B.V.(15)
Stater Participations B.V.(15)
Stater Deutschland Verwaltungs-GmbH(16)(40)
Country
US
Chile
Saudi Arabia
Brazil
Russia
Luxembourg
US
Australia
US
Canada
India
Czech Republic
Poland
US
Australia
US
Switzerland
Australia
Switzerland
Germany
Romania
France
Czech Republic
China
UK
The Netherlands
Poland
Portugal
Argentina
Belgium
US
Israel
Germany
Japan
UK
UK
Dubai
Singapore
Dubai
Finland
Sweden
Norway
Denmark
Slovakia
Sweden
Singapore
South Africa
US
US
US
Japan
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
Germany
Holdings as at March 31
2020
100%
100%
70%
100%
–
100%
100%
–
100%
–
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99.99%
100%
100%
99.90%
100%
100%
100%
–
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
100%
100%
100%
100%
81%
75%
75%
75%
75%
75%
75%
75%
2021
–
100%
70%
100%
–
100%
100%
–
100%
–
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
–
–
100%
99.90%
100%
100%
100%
–
100%
100%
–
100%
100%
100%
100%
100%
100%
100%
–
60%
100%
100%
100%
100%
81%
75%
75%
–
75%
75%
75%
–
274 | Consolidated financial statements
Infosys Annual Report 2020-21
Name of subsidiaries
Stater Deutschland GmbH & Co. KG(16)(40)
Stater Belgium N.V./S.A.(17)(42)
Outbox systems Inc. dba Simplus (US)(20)
Simplus North America Inc.(21)
Simplus ANZ Pty Ltd.(21)
Simplus Australia Pty Ltd(22)
Sqware Peg Digital Pty Ltd(22)
Simplus Philippines, Inc.(21)
Simplus Europe, Ltd.(21)
Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd)(12)(26)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd)(12)(26)
Infosys Limited Bulgaria EOOD(1)(27)
Kaleidoscope Animations, Inc.(30)
Kaleidoscope Prototyping LLC(31)
GuideVision, s.r.o.(28)
GuideVision Deutschland GmbH(29)
GuideVision Suomi Oy(29)
GuideVision Magyarország Kft(29)
GuideVision Polska SP.Z.O.O(29)
GuideVision UK Ltd(29)
Beringer Commerce Inc(33)
Beringer Capital Digital Group Inc(33)
Mediotype LLC(34)
Beringer Commerce Holdings LLC(34)
SureSource LLC(35)
Blue Acorn LLC(35)
Simply Commerce LLC(35)
iCiDIGITAL LLC(36)
Infosys BPM UK Limited(4)(38)
Infosys Turkey Bilgi Teknolojikeri Limited Sirketi(1)(43)
Infosys Germany Holding Gmbh(1)(46)(47)
Country
Germany
Belgium
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Bulgaria
US
US
Czech Republic
Germany
Finland
Hungary
Poland
UK
US
US
US
US
US
US
US
US
UK
Turkey
Germany
Holdings as at March 31
2020
75%
53.99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2021
–
75%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
–
–
100%
(1) Wholly-owned subsidiary of Infosys Limited
(2) Majority-owned and controlled subsidiary of Infosys Limited
(3) Liquidated effective November 17, 2019
(4) Wholly-owned subsidiary of Infosys BPM Limited
(5) Wholly-owned subsidiary of Infosys Consulting Holding AG
(6) Majority-owned and controlled subsidiary of Infosys Consulting
Holding AG
(7) Wholly-owned subsidiary of Panaya Inc.
(8) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(9) Wholly-owned subsidiary of Infosys Consulting Pte Ltd
(10) Majority-owned and controlled subsidiary of Infosys Consulting Pte. Ltd
(11) Wholly-owned subsidiary of WongDoody
(12) Wholly-owned subsidiary of Fluido Oy
(13) On April 1, 2019, Infosys Consulting Pte. Ltd, acquired 81% voting
interests in HIPUS Co., Ltd (formerly Hitachi Procurement Service
Co. Ltd)
(14) On May 23, 2019, Infosys Consulting Pte. Ltd, acquired 75% of the
voting interests in Stater N.V
(15) Wholly-owned subsidiary of Stater N.V
(16) Wholly-owned subsidiary of Stater Duitsland B.V.
(17) Majority-owned and controlled subsidiary of Stater Participations B.V.
(18) Effective October 1, 2019, merged into Infosys Consulting Ltda, a
wholly-owned subsidiary of Infosys Limited
(19) Liquidated effective January 28, 2021.
(20) On March 13, 2020, Infosys Nova Holdings LLC, acquired 100% of the
voting interests in Outbox Systems Inc.
(21) Wholly-owned subsidiary of Outbox Systems Inc.
(22) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(23) Liquidated effective October 31, 2019
(24) On February 20, 2020, Infosys Poland, Sp z.o.o, acquired 100% of the
voting interests in Infosys Consulting Sp. z.o.o from Infosys Consulting
Holding AG
(25) Liquidated effective July 17, 2020
(26) On June 1, 2020, Fluido Oy, acquired 100% of the voting interests in
Infosys Fluido UK,Ltd (formerly Simplus U.K., Ltd) and Infosys Fluido
Ireland, Ltd.(formerly Simplus Ireland, Ltd) from Simplus Europe, Ltd
(27) Incorporated effective September 11, 2020.
(28) On October 1, 2020, Infy Consulting Company Limited acquired 100%
of voting interests in GuideVision, s.r.o.
(29) Wholly-owned subsidiary of GuideVision, s.r.o.
(30) On October 9, 2020, Infosys Nova Holdings LLC, acquired 100% voting
interest in Kaleidoscope Animations, Inc.
(31) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(32) Merged with Infosys Poland Sp. z.o.o, effective October 21, 2020
(33) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned
subsidiary of Infosys Limited, acquired 100% voting interest in Beringer
Commerce Inc and Beringer Capital Digital Group Inc
(34) Wholly-owned subsidiary of Beringer Commerce Inc
(35) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(36) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(37) Liquidated effective November 19,2020
(38) Incorporated, effective December 9, 2020
(39) Merged into Fluido Sweden AB (Extero), effective December 18, 2020
(40) Merged into Stater Duitsland B.V., effective December 18, 2020
Infosys Annual Report 2020-21
Consolidated financial statements | 275
(41) Merged with Stater N.V., effective December 23, 2020
(42) On December 29, 2020, Stater Participation B.V acquired non-controlling
interest of 28.01% voting interests in Stater Belgium NV/SA
(43) Incorporated on December 30, 2020.
(44) Under liquidation
(45) Liquidated effective March 9,2021
(46) Incorporated on March 23, 2021
(47) On March 28, 2021 Infosys Limited and Infosys Germany Holding
Gmbh registered Infosys Automotive and Mobility GmbH & Co. KG, a
partnership firm.
(48) Wholly-owned subsidiary of Infosys Public Services, Inc.
Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
List of other related parties
Particulars
Infosys Limited Employees’ Gratuity Fund Trust
Infosys Limited Employees’ Provident Fund Trust
Infosys Limited Employees’ Superannuation Fund Trust
Infosys BPM Limited Employees’ Superannuation Fund
Trust
Infosys BPM Limited Employees’ Gratuity Fund Trust
EdgeVerve Systems Limited Employees’ Gratuity Fund
Trust
EdgeVerve Systems Limited Employees’ Superannuation
Fund Trust
Infosys Employees Welfare Trust
Infosys Employee Benefits Trust
Infosys Science Foundation
Infosys Expanded Stock Ownership Trust(1)
Country
India
India
India
Nature of relationship
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
India
India
India
India
India
India
India
India
Post-employment benefit plan of Infosys BPM
Post-employment benefit plan of Infosys BPM
Post-employment benefit plan of EdgeVerve
Post-employment benefit plan of EdgeVerve
Controlled trust
Controlled trust
Controlled trust
Controlled trust
Refer to Note 2.20 for information on transactions with post-employment benefit plans mentioned above.
(1) Registered on May 15, 2019
List of Key Managerial Personnel (KMP)
Whole-time directors
Salil Parekh, Chief Executive Officer and Managing Director
U.B. Pravin Rao, Chief Operating Officer
Ravi Kumar S., President and Deputy
Chief Operating Officer
Krishnamurthy Shankar, Group Head – Human Resources
Inderpreet Sawhney, Group General Counsel and
Chief Compliance Officer
Non-whole-time directors
Nandan M. Nilekani
Michael Gibbs
Kiran Mazumdar-Shaw
Roopa Kudva (retired as member of the Board
effective February 3, 2020)
D.N. Prahlad (resigned as a member of the Board
effective April 20, 2020)
D. Sundaram
Uri Levine (appointed as an independent director
effective April 20, 2020)
Bobby Parikh (appointed as an independent director
effective July 15, 2020)
Dr. Punita Kumar-Sinha (retired as member of the Board
effective January 13, 2021)
Chitra Nayak (appointed as an independent director
effective March 25, 2021)
Executive officers
Nilanjan Roy, Chief Financial Officer
Mohit Joshi, President
Company Secretary
A.G.S. Manikantha
Transactions with KMP
The compensation to KMP, which comprises directors and
executive officers, is as follows:
Particulars
Salaries and other employee
benefits to whole-time directors
and executive officers(1)(2)
Commission and other benefits
to non-executive / independent
directors
Total
in ` crore
Year ended March 31,
2021
2020
144
118
6
150
8
126
(1) Total employee stock compensation expense for the years ended
March 31, 2021 and March 31, 2020 includes a charge of ` 76 crore
and ` 56 crore, respectively, towards KMP. (Refer to Note 2.11)
(2) Does not include post-employment benefit based on actuarial valuation
as this is done for the Company as a whole.
276 | Consolidated financial statements
Infosys Annual Report 2020-21
Additional information pursuant to para 2 of general instructions for the preparation of Consolidated
financial statements
Name of entity
Net assets
Share in profit or loss
Share in other
comprehensive income
Amount
Amount
as %age of
consolidated
net assets
Amount
as %age of
consolidated
profit or loss
84.46% 71,531
88.8% 18,048
as %age of
consolidated
other
comprehensive
income
108.5%
191
in ` crore
Share in total
comprehensive income
Amount
as %age of
consolidated
total
comprehensive
income
89.0% 18,239
5.94%
5,030
3.42%
695
(5.68%)
(10)
3.34%
685
3.23%
656
1.14%
Infosys Limited
Indian subsidiaries
Infosys BPM Limited
EdgeVerve Systems
Limited
Skava Systems Pvt.
Ltd.
Foreign subsidiaries
Brilliant Basics
Holdings Limited
Brilliant Basics
Limited
Brilliant Basics
(MENA) DMCC
iCiDIGITAL LLC
Blue Acorn LLC
Beringer Commerce
Inc
Simply Commerce
LLC
Beringer Capital
Digital Group Inc
Beringer Commerce
Holdings LLC
Mediotype LLC
SureSource LLC
Infosys BPO
Americas LLC
Portland Group Pty
Ltd
Fluido Denmark A/S
Fluido Oy
Fluido Newco AB
Fluido Norway A/S
Fluido Slovakia
s.r.o.
Fluido Sweden AB
Infosys Fluido
Ireland, Ltd.
Infosys Fluido UK,
Ltd.
GuideVision, s.r.o.
GuideVision
Deutschland GmbH
GuideVision Suomi
Oy
GuideVision
Magyarország Kft
GuideVision Polska
SP.Z.O.O
0.06%
0.09%
0.02%
0.02%
0.00%
0.06%
0.03%
51
76
13
13
–
47
23
0.00%
0.00%
0.02%
0.00%
0.01%
0.04%
0.52%
443
0.00%
0.00%
–
0.00%
0.17%
145
0.00%
0.46%
0.03%
(0.00%)
391
23
(3)
0.00%
0.04%
0.00%
1
–
4
–
3
9
–
–
–
–
9
–
0.01%
8
(0.18%)
(37)
0.18%
0.00%
0.13%
0.00%
0.01%
0.00%
(0.01%)
149
3
108
–
9
4
(7)
0.06%
0.01%
0.14%
0.00%
0.01%
0.00%
0.04%
13
3
29
–
3
–
9
(0.00%)
(3)
(0.01%)
(2)
(0.00%)
0.03%
(3)
26
(0.04%)
0.04%
(0.00%)
(3)
0.00%
0.00%
0.00%
–
4
0.00%
(0.00%)
(0.01%)
(6)
(0.01%)
(8)
8
–
–
(1)
(2)
2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3.21%
658
0.00%
0.00%
0.02%
0.00%
0.01%
0.04%
0.00%
0.00%
0.00%
0.00%
0.04%
0.00%
1
–
4
–
3
9
–
–
–
–
9
–
(0.18%)
(37)
0.06%
0.01%
0.14%
0.00%
0.01%
0.00%
0.04%
13
3
29
–
3
–
9
(0.01%)
(2)
(0.04%)
0.04%
0.00%
0.00%
(0.00%)
(0.01%)
(8)
8
–
–
(1)
(2)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Infosys Annual Report 2020-21
Consolidated financial statements | 277
Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
Amount
as %age of
consolidated
profit or loss
Share in other
comprehensive income
Amount
Share in total
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
0.00%
as %age of
consolidated
total
comprehensive
income
0.00%
GuideVision UK Ltd
Infosys Germany
Holding GmbH
Infosys Chile SpA
Infosys Americas
Inc.,
Infosys Technologies
(Australia) Pty.
Limited
Infosys Austria
GmbH
Infosys (Czech
Republic) Limited
s.r.o.
Infosys Tecnologia
DO Brasil LTDA
Infosys Limited
Bulgaria
Infosys Technologies
(China) Co. Limited
Infosys Technologies
(Shanghai)
Company Limited
HIPUS Co., Ltd.
Infosys Public
Services, Inc. USA
Infosys Consulting
S.R.L.
Infosys Management
Consulting Pty
Limited
Infosys Consulting
(Belgium) NV
Infosys Consulting
Ltda.
Infosys Consulting
AG
Infosys Consulting
(Shanghai) Co., Ltd.
Infosys Consulting
s.r.o. v likvidaci
Infosys Consulting
GmbH
Infosys Consulting
SAS
Infy Consulting
Company Ltd.
Infosys Consulting
Holding AG
Infy Consulting B.V.
Infosys Consulting
Sp. z.o.o.
0.01%
0.00%
0.01%
0.00%
0.00%
0.00%
5
2
9
1
–
2
0.00%
0.00%
0.02%
0.00%
0.00%
0.00%
0.10%
82
0.02%
1
–
4
–
–
–
4
–
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
–
1
0.00%
(0.00%)
(1)
0.30%
251
0.24%
49
0.00%
0.68%
0.09%
580
74
(0.30%)
0.10%
(61)
21
0.00%
0.00%
0.76%
646
0.42%
85
0.00%
0.00%
3
(0.02%)
(4)
0.00%
0.04%
33
0.03%
(0.02%)
(13)
0.03%
7
7
0.07%
61
(0.14%)
(28)
0.00%
0.00%
0.00%
0.14%
115
0.04%
9
0.00%
0.95%
192
0.00%
0.00%
0.00%
0.05%
0.02%
1
2
41
13
0.00%
0.04%
0.01%
0.19%
159
0.08%
0.41%
0.03%
348
28
(0.01%)
0.06%
0.00%
–
0.07%
–
8
3
17
(2)
12
15
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
–
4
–
–
–
4
–
0.00%
0.02%
0.00%
0.00%
0.00%
0.02%
0.00%
(0.00%)
(1)
0.24%
49
(0.30%)
0.10%
(61)
21
0.41%
85
(0.02%)
(4)
0.03%
0.03%
7
7
(0.14%)
(28)
0.04%
9
0.94%
192
0.00%
0.04%
0.01%
–
8
3
0.08%
17
(0.01%)
0.06%
(2)
12
0.07%
15
278 | Consolidated financial statements
Infosys Annual Report 2020-21
Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
Amount
as %age of
consolidated
profit or loss
Share in other
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
Share in total
comprehensive income
Amount
as %age of
consolidated
total
comprehensive
income
Lodestone
Management
Consultants
Portugal,
Unipessoal, Lda.
S.C. Infosys
Consulting S.R.L.
Infosys Consulting
Pte Limited
Infosys Luxembourg
S.a.r.l.
Infosys Technologies
S. de R. L. de C. V.
Infosys Nova
Holdings LLC
Infosys Poland Sp
Z.o.o.
Infosys South Africa
(Pty) Ltd
Infosys Arabia
Limited
Infosys Technologies
(Sweden) AB.
Infosys Compaz Pte.
Ltd
Infosys Middle East
FZ LLC
WDW
Communications,
Inc.
WongDoody
Holding Company
Inc.
WongDoody, Inc.
Kallidus Inc,
Kaleidoscope
Animations
Kaleidoscope
Prototyping
Panaya GmbH
Panaya Inc.
Panaya Ltd.
Panaya Japan Co.
Ltd.
Infosys McCamish
Systems LLC
Simplus Philippines,
Inc.
Simplus Australia
Pty Ltd
Outbox Systems Inc.
dba Simplus (US)
0.00%
0.05%
–
40
0.00%
0.05%
–
11
(0.84%)
(714)
(0.05%)
(10)
0.00%
4
(0.06%)
(12)
0.32%
272
0.20%
3.25% 2,753
0.39%
0.68%
577
0.30%
0.00%
0.00%
–
3
0.00%
0.00%
0.07%
57
0.11%
0.26%
223
0.27%
41
79
60
–
–
22
55
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
–
–
–
–
–
–
–
–
–
–
–
0.00%
–
0.05%
11
(0.05%)
(10)
(0.06%)
(12)
0.20%
0.39%
0.29%
0.00%
0.00%
0.11%
0.27%
41
79
60
–
–
22
55
(0.02%)
(20)
(0.03%)
(7)
(3.98%)
(7)
(0.07%)
(14)
(0.25%)
(211)
(0.18%)
(37)
0.00%
0.04%
0.34%
0.00%
34
289
–
0.02%
0.18%
(0.49%)
5
36
(100)
0.00%
0.00%
0.00%
0.06%
48
0.05%
11
0.00%
0.01%
(0.00%)
0.16%
(0.76%)
6
(1)
135
(642)
0.02%
0.00%
0.01%
(0.10%)
4
–
2
(21)
0.00%
0.00%
0.00%
0.00%
0.00%
–
0.00%
–
0.00%
0.67%
570
0.80%
162
0.00%
0.01%
6
0.00%
1
0.00%
(0.03%)
(29)
(0.05%)
(11)
0.09%
78
(0.10%)
(20)
0.00%
0.00%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.18%)
(37)
0.02%
0.18%
(0.49%)
5
36
(100)
0.05%
11
0.02%
0.00%
0.01%
(0.10%)
4
–
2
(21)
0.00%
–
0.79%
162
0.00%
1
(0.05%)
(11)
(0.10%)
(20)
Infosys Annual Report 2020-21
Consolidated financial statements | 279
Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
Amount
as %age of
consolidated
profit or loss
Share in other
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
Share in total
comprehensive income
Amount
as %age of
consolidated
total
comprehensive
income
Stater Belgium N.V. /
S.A.
Stater Deutschland
GmbH & Co. KG
Stater Duitsland B.V.
Stater Deutschland
Verwaltungs-GmbH
HypoCasso B.V.
Stater Nederland
B.V.
Stater N.V.
Stater Participations
B.V.
Stater XXL B.V.
Subtotal
Adjustment arising out
of consolidation
Controlled trusts
Non-controlling
interests
Total
0.08%
71
(0.00%)
(1)
0.00%
0.00%
0.00%
0.03%
0.36%
0.65%
–
–
–
22
301
553
0.00%
0.00%
0.00%
0.04%
0.64%
0.63%
–
–
–
8
129
128
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.30%)
0.00%
(250)
–
100.00% 84,691
0.00%
0.00%
–
–
100.00% 20,313
0.00%
0.00%
100.00%
(8,092)
183
76,782
(431)
76,351
(914)
24
19,423
(72)
19,351
–
–
–
–
–
–
–
–
–
176
130
–
306
(6)
300
(0.00%)
(1)
0.00%
0.00%
0.00%
0.04%
0.63%
0.62%
–
–
–
8
129
128
0.00%
0.00%
–
–
100.00% 20,489
(784)
24
19,729
(78)
19,651
Proposed transfer of CSR assets
Consequent to the Companies (Corporate Social Responsibility
Policy) Amendment Rules, 2021 (“the Rules”), the Company
intends to transfer its CSR capital assets created prior to
January 2021 to a controlled subsidiary (referred to as “the
Subsidiary”) to be established in accordance with Section 8 of
the Companies Act, 2013 for charitable objects. The transfer
will be undertaken upon obtaining the required approvals
from regulatory authorities.
The Subsidiary will be included in the consolidated financial
statements of the Company commencing in the period from
formation because the Company will have the power to direct
all of the Subsidiary’s relevant activities which affects returns
and the Company will be exposed to any future financial
support which may be required by the Subsidiary.
The Company evaluated the impact of the Rules on the carrying
amount of the capital asset of ` 283 crore in the consolidated
financial statements as at March 31, 2021, and concluded
that the recoverable amount of capital asset, estimated based
on future cash flows from continuing use of the capital asset,
is expected to exceed the carrying amount including in the
period subsequent to the transfer to the Subsidiary.
2.24 Segment reporting
Ind AS 108 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 Group’s
operations predominantly relate to providing end-to-end
business solutions to enable clients to enhance business
performance. The Chief Operating Decision Maker evaluates
the Group’s performance and allocates resources based on
an analysis of various performance indicators by business
segments. Accordingly, information has been presented
along business segments. 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 accounting policies.
Business segments of the Group are primarily enterprises in
Financial Services and Insurance, enterprises in Manufacturing,
enterprises in Retail, Consumer Packaged Goods and
Logistics, enterprises in the Energy, Utilities, Resources and
Services, enterprises in Communication, Telecom OEM and
Media, enterprises in Hi-Tech, enterprises in Life Sciences
and Healthcare and all other segments. The financial
services reportable segments have been aggregated to
include the Financial Services operating segment and Finacle
operating segment because of the similarity of the economic
characteristics. All other segments represent the operating
segments of businesses in India, Japan, China, Infosys Public
Services and other enterprises in Public Services.
Revenue and identifiable operating expenses in relation to
segments are categorized based on items that are individually
identifiable to that segment. Revenue for ‘all other segments’
represents revenue generated by Infosys Public Services and
revenue generated from customers located in India, Japan and
China and other enterprises in Public Services. Allocated expenses
of segments include expenses incurred for rendering services from
280 | Consolidated financial statements
Infosys Annual Report 2020-21
the Group’s offshore software development centers and onsite
expenses, which are categorized in relation to the associated
efforts of the segment. Certain expenses such as depreciation
and amortization, 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 Group.
Assets and liabilities used in the Group’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 practicable to provide segment
disclosures relating to total assets and liabilities since a
meaningful segregation of the available data is onerous.
Business segment revenue information is collated based on
individual customers invoiced or in relation to which the
revenue is otherwise recognized.
Disclosure of revenue by geographic locations is given in Note
2.16 Revenue from operations.
Business segments
Year ended March 31, 2021 and March 31, 2020:
Particulars
Financial
Services(1)
Retail(2) Communication(3)
Manufacturing Hi-Tech
Life
Sciences(4)
All other
segments(5)
in ` crore
Total
Energy,
Utilities,
Resources
and
Services
Revenue from
operations
Identifiable
operating
expenses
Allocated
expenses
Segmental
operating
income
32,583 14,745
14,035
28,625
12,628
11,984
12,539
11,736
9,447
9,131
8,560
6,972
6,870
5,837
3,100
2,471
1,00,472
90,791
17,612
14,977
6,937
6,989
6,025
6,342
2,691
2,834
7,349
7,084
2,484
2,476
6,500
6,104
2,487
2,416
4,996
4,991
4,804
4,125
3,516
3,212
1,919
1,486
53,633
48,968
1,888
2,081
1,302
1,243
1,198
1,194
875
921
18,950
19,507
8,946
7,306
5,117
4,212
2,795
2,424
3,552
3,216
2,563
2,059
2,454
1,604
2,156
1,431
306
64
Unallocable expenses
Other income, net (Refer to Note 2.17)
Finance cost
Profit before tax
Income tax expense
Net profit
Depreciation and amortization expense
Non-cash expenses other than depreciation and
amortization
27,889
22,316
3,267
2,942
2,201
2,803
195
170
26,628
22,007
7,205
5,368
19,423
16,639
3,267
2,893
–
49
(1) Financial Services include enterprises in Financial Services and Insurance
(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics
(3) Communication includes enterprises in Communication, Telecom OEM and Media
(4) Life Sciences includes enterprises in Life Sciences and Healthcare
(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in Public Services
Infosys Annual Report 2020-21
Consolidated financial statements | 281
Significant clients
No client individually accounted for more than 10% of the revenues in the years ended March 31, 2021 and March 31, 2020.
2.25 Function-wise classification of Consolidated Statement of Profit and Loss
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses
Total operating expenses
Operating profit
Other income, net
Finance cost
Profit before tax
Tax expense
Current tax
Deferred tax
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
Exchange differences on translation of foreign operations, net
Fair value changes on investments, net
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the period
Profit attributable to
Owners of the Company
Non-controlling interests
Total comprehensive income attributable to
Owners of the Company
Non-controlling interests
Note no.
Year ended March 31,
in ` crore
2.16
2.17
2.15
2.15
2.20
2.4
2.10
2.4
2021
1,00,472
65,413
35,059
4,627
5,810
10,437
24,622
2,201
195
26,628
6,672
533
19,423
134
119
253
25
130
(102)
53
306
19,729
19,351
72
19,423
19,651
78
19,729
2020
90,791
60,732
30,059
4,711
5,974
10,685
19,374
2,803
170
22,007
5,775
(407)
16,639
(180)
(33)
(213)
(36)
378
22
364
151
16,790
16,594
45
16,639
16,732
58
16,790
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Salil Parekh
Chief Executive Officer
and Managing Director
Nilanjan Roy
Chief Financial Officer
U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
Jayesh Sanghrajka
Executive Vice President and Deputy
Chief Financial Officer
Bengaluru
April 14, 2021
282 | Consolidated financial statements
Infosys Annual Report 2020-21
Business Responsibility Report 2020-21
The Infosys Business Responsibility Report 2020-21 follows the National Voluntary Guidelines on Social, Environmental
and Economic Responsibilities of Business, as notified by the Ministry of Corporate Affairs (MCA), Government of India.
This report substantially complies with the National Guidelines on Responsible Business Conduct (NGRBC) released by
MCA in 2019. We also publish a comprehensive Sustainability / ESG Report annually, based on the GRI standard and
independently assured by DNV GL.
The ESG Report will be available at https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf.
Our Business Responsibility Report includes our responses to questions on our practices and performance on key principles
defined by Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, covering
topics across environment, governance, and social dimensions. In keeping with the guiding principles of integrated reporting,
we have provided cross-references to the reported data within the main sections of this Annual Report and ESG Report for all
topics that are material to us and to our stakeholders.
Business Responsibility Report
(As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
Section A: General information about the Company
Corporate Identity Number (CIN) of the Company
1.
L 8 5 1 1 0 K A 1 9 8 1 P L C 0 1 3 1 1 5
2. Name of the Company
Infosys Limited
3.
Registered address
Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India
4. Website
Email ID
www.infosys.com
sustainability@infosys.com
Financial year reported
April 1, 2020 to March 31, 2021
Sector(s) that the Company is engaged in
(industrial activity code-wise)
Name and description of main products / services:
Computer programming, consultancy, and related activities
NIC code of the product / service: 620
List three key products / services that the Company
manufactures / provides (as in Balance Sheet)
Total number of locations where business activity
is undertaken by the Company
Software services, consulting, and products
i. Number of international locations
https://www.infosys.com/about/Pages/locations.aspx
(Provide details of major five)
ii. Number of national locations
https://www.infosys.com/about/Pages/locations.aspx
10. Markets served by the Company – Local / State /
National / International
Refer to Segment reporting, page 210 and page 280
Section B: Financial details of the Company(1)
1.
Paid-up capital (`)
Total turnover (`)
Total profit after taxes (`)
` 2,130 crore
` 85,912 crore
` 18,048 crore
Total spending on Corporate Social Responsibility
(CSR) as percentage of profit after tax (%)
2% of average net profits of the Company made during the three
immediately preceding financial years. Refer to Annexure 6 to
the Board’s report in the Annual Report, page 53
List of activities in which expenditure in 4 above
has been incurred
Refer to Annexure 6 to the Board’s report in the Annual Report,
page 53
(1) As per the standalone Ind AS financials
Infosys Annual Report 2020-21
Business Responsibility Report | 283
5.
6.
7.
8.
9.
2.
3.
4.
5.
Section C: Other details
1. Does the Company have any subsidiary company /
companies?
2. Do the subsidiary company / companies participate in
the BR initiatives of the parent Company? If yes, then
indicate the number of such subsidiary company(s).
3. Do any other entity / entities (e.g. suppliers,
distributors, etc.) that the Company does business
with participate in the BR initiatives of the Company?
If yes, then indicate the percentage of such entity /
entities (Less than 30%, 30%, 60%, More than 60%).
:
:
:
Section D: BR information
1. Details of Director / Directors responsible for BR
Yes. Refer to Annexure 1 to the Board’s report in the Annual
Report, page 40
Yes.
Yes. Less than 30%.
a. Details of the Director responsible for implementation of the BR policy / policies
1. DIN Number
2. Name
3. Designation
:
0 6 7 8 2 4 5 0
: U.B. Pravin Rao
: Chief Operating Officer and Whole-time Director
b. Details of the BR Head
1. DIN Number (if applicable)
2. Name
3. Designation
4. Telephone number
5. E-mail ID
: Not applicable
: Aruna C. Newton
: Associate Vice President
:
91 80 4961 4243
:
arunacnewton@infosys.com
284 | Business Responsibility Report
Infosys Annual Report 2020-21
2.
3.
4.
5.
6.
7.
8.
9.
10.
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2. Principle-wise (as per National Voluntary Guidelines) Business Responsibility (BR) policy / policies (reply with Yes / No)
S.No. Questions
1.
Do you have a policy / policies for...
Has the policy been formulated
in consultation with the relevant
stakeholders?
Does the policy conform to any
national / international standards?(1)
Has the policy been approved by the
Board? If yes, has it been signed by the
MD / owner / CEO / appropriate Board
Director?(2)
Does the Company have a specified
committee of the Board / Director /
Official to oversee the implementation
of the policy?
Indicate the link for the policy to be
viewed online.
P1
Yes
Yes
Yes
Yes
Yes
P2
Yes
Yes
Yes
Yes
Yes
P3
Yes
Yes
Yes
Yes
P4
Yes
Yes
Yes
Yes
P5
Yes
Yes
Yes
Yes
P6
Yes
Yes
Yes
Yes
P7
Yes
Yes
Yes
P8
Yes
Yes
Yes
P9
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Refer to the Supplier
Code of Conduct,
Responsible Supply
Chain Policy, and
Information Security
Policy (available on
our intranet)
Refer to the
Whistleblower
Policy, Code
of Conduct
and Ethics and
Anti-Bribery and
Anti-Corruption
(ABAC) policy
(available on our
intranet)
Refer to our
Human rights
statement
Refer to
our CSR
Policy and
Sustainability
Policy
(available on
our intranet).
Refer to our
Human rights
statement
Refer to our
HSE Policy
Sustainability
Policy
(available on
our intranet).
Available
on our
intranet
Refer to
our CSR
Policy and
Sustainability
Policy
(available on
our intranet).
Has the policy been formally
communicated to all relevant internal
and external stakeholders?
Does the Company have an in-house
structure to implement the policy /
policies?
Does the Company have a grievance
redressal mechanism related to the
policy / policies to address stakeholders’
grievances related to the policy /
policies?
Has the Company carried out
independent audit / evaluation of the
working of this policy by an internal or
external agency?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
(1) Please refer to our ESG Report for more information.
(2) Designated department heads, who report to the Chief Executive Officer (CEO) / Chief Operating Officer (COO), monitor and oversee policy implementation. The CEO / COO monitors policy implementation and
progress on initiatives and actions through periodic reviews.
Principle-wise index:
P1 – Whistleblower Policy, Code of Conduct and Ethics, Anti-Bribery and Anti-Corruption (ABAC) policy
P2 – Responsible Supply Chain Policy, Supplier Code of Conduct, Information Security Policy
P3 – Human Rights Statement, HR Policies
P4 – CSR Policy, Sustainability Policy
P5 – Human Rights Statement
P6 – HSE Policy
P7 – Sustainability Policy
P8 – CSR Policy, Sustainability Policy
P9 – Information Security Policy, Brand Guidelines, Data Privacy Policy
If answer to Sl. No. 1 against any principle is ‘No’, please explain why (tick up to two options) – Not applicable
2a.
S.No. Questions
1.
2.
The Company has not understood the principles.
The Company is not at a stage where it finds itself in
a position to formulate and implement the policies on
specified principles.
The Company does not have financial or manpower
resources available for the task.
It is planned to be done within the next six months.
It is planned to be done within the next one year.
Any other reason (please specify).
3.
4.
5.
6.
P1
P2
P3
P4
P5
P6
P7
P8
P9
Not applicable
3. Governance related to BR
Indicate the frequency with which the Board of Directors, committee of the Board or
CEO assesses the BR performance of the Company – Within 3 months, 3-6 months,
annually, more than 1 year.
Does the Company publish a BR or a Sustainability Report? What is the hyperlink
for viewing this report? How frequently is it published?
: The Board of Directors, committees of the Board, and the CEO assess the BR
performance of the Company every three months. For more information, refer
to the Corporate governance report, which is part of this Annual Report, and the
ESG Report 2021.
: Yes, annually.
https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf
Section E: Principle-wise performance
Description
Principle No.
Response
P1 – Business should conduct and govern themselves with ethics, transparency, and accountability.
1.1
Does the policy relating to ethics,
bribery and corruption cover
only the Company? Yes / No.
Does it extend to the Group
/ Joint Ventures / Suppliers /
Contractors / NGOs / Others?
Our corporate governance practices apply across the Infosys Group and extend to our suppliers and partners. Our Code
of Conduct and Ethics complies with the legal requirements of applicable laws and regulations, including the anti-bribery
and anti-corruption policies, ethical handling of conflicts of interest, and fair, accurate, and timely disclosure of reports
and documents that are filed with the required regulatory bodies in the regions where we operate. Additionally, we
have the Supplier Code of Conduct, which sets out standards of ethical conduct for our third parties. We also have a
Whistleblower Policy accessible to all our stakeholders and an Anti-Bribery and Anti-Corruption (ABAC) Policy for our
employees in the Infosys Group.
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Principle No.
Description
Response
1.2
How many stakeholder
complaints have been received in
the past financial year, and what
percentage was satisfactorily
resolved by the Management?
If so, provide the details thereof,
in about 50 words or so.
Infosys’ stakeholders include our investors, clients, employees, vendors / partners, government, and local communities.
For details on investor complaints and resolution, refer to the ‘Investor complaints’ published quarterly, and available in
the Corporate governance report of this Annual Report.
For details of employee grievances and resolution, refer to the table in section 3.7. More details will be available in our
ESG Report at https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf.
P2 – Businesses should provide goods and services that are safe and contribute to sustainability throughout their lifecycle.
2.1
2.2
2.3
List up to three of your products
or services whose design
has incorporated social or
environmental concerns, risks
and / or opportunities.
Infosys is committed to fostering technology for the improvement of communities across education, healthcare, and
e-governance, by partnering with larger societal stakeholders and helping them harness the power of emerging digital
technologies, like Artificial Intelligence (AI), blockchain, genomics, and others.
Our sustainability strategy strives to make:
• Our business sustainable
• Our clients’ businesses sustainable
• Our ecosystem sustainable
Details of our initiatives in this regard are available at
https://www.infosys.com/global-resource/18/tech-good-compendium.pdf
For each such product, provide
the following details in respect of
resource use (energy, water, raw
material, etc.) per unit of product
(optional):
Our business being IT services and consulting, our solutions that have been detailed under 2.1 fuel the digital
transformation of our nation.
Being a responsible corporation, we track the consumption of critical resources diligently, and our goals and performance
related to these parameters will be provided in our ESG Report at
https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf
Does the Company have
procedures in place for
sustainable sourcing (including
transportation)?
If yes, what percentage of your
inputs was sourced sustainably?
Also, provide details thereof, in
about 50 words or so.
We have a Responsible Supply Chain Policy and a Supplier Code of Conduct. Our suppliers are classified into three
broad categories – People, Services, and Products. Our contracts have appropriate clauses and checks to prevent the
employment of child labor or forced labor in any form. We also provide forums where suppliers can voice their concerns.
We continue to engage with all supplier segments working within our boundary covering People and Services categories
by conducting training, assessments, and audits on Health and Safety, Compliance and Anti-corruption, Human Rights
and Anti-harassment. We engage with local suppliers for our People and Services categories. Our Sustainable Procurement
policy guides our efforts to ensure we work with suppliers who endorse environmental protection and abstemious use of
scarce natural resources, protect human rights, and adhere to all applicable laws of the land.
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Principle No.
Description
Response
2.4
2.5
Our Responsible Supply Chain Policy guides our actions in the supply chain and interactions with our supply chain
partners. We have a comprehensive engagement model to meaningfully engage with our suppliers on material aspects.
Regular capacity-building and assessments are conducted for key suppliers. The proportion of spending on domestic
suppliers at significant locations was about 71% in fiscal 2021.
Has the Company taken
any steps to procure goods
and services from local and
small producers, including
communities surrounding their
place of work? If yes, what steps
have been taken to improve their
capacity and capability of local
and small vendors?
Does the Company have a
mechanism to recycle products
and waste?
If yes, what is the percentage of
recycling of products and waste
(separately as <5%, 5-10%,
>10%)? Also, provide details
thereof, in about 50 words or so.
As an environmentally responsible company, we have adopted a focused approach to managing the waste generated by
our operations. Our waste management strategy is framed around the three Rs – Reduce, Reuse, and Recycle. We recycle
more than 10% of our waste. Rigorous waste segregation at source, followed by appropriate treatment or disposal in
adherence to applicable legislations ensure recycling of majority of the waste generated. Organic waste (food waste and
garden waste) is treated at in-house biogas / organic waste converters. Our ambition is to send zero waste to landfills, and
we continue to consciously work on further segregation, recycling, and reduction of mixed waste to landfill.
For more information, visit our Corporate Responsibility microsite, at
https://www.infosys.com/about/corporate-responsibility.html
P3 – Businesses should promote the wellbeing of all employees.
3.1
3.2
3.3
3.4
3.5
3.6
Please indicate the total number
of employees.
Please indicate the total number
of employees hired on a
temporary / contractual / casual
basis.
Please indicate the number of
permanent women employees.
Please indicate the number of
permanent employees with
disabilities.
Do you have an employee
association that is recognized by
the Management?
What percentage of your
permanent employees are
members of this recognized
employee association?
Our global, full-time, permanent employee count stands at 2,59,619 as on March 31, 2021.
Most of our employees work as full-time, permanent employees. More details will be available in our ESG Report at
https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf.
The number of our global permanent women employees is 1,00,321 as on March 31, 2021.
Being an equal opportunity employer, we encourage employees to disclose their disabilities and seek reasonable
accommodation to allow them to perform to their full potential.
The number of employees who have voluntarily disclosed their disability status and the nature of disability stands at 620
as on March 31, 2021.
We recognize the right to freedom of association through Collective Bargaining Agreements (CBAs) in accordance with the
guidelines and compliance frameworks put forth by governments in countries where we have our operations.
The details will be available in our ESG Report at https://www.infosys.com/sustainability/documents/infosys-esg-
report-2020-21.pdf.
Principle No.
Description
Response
3.7
Please indicate the number of
complaints relating to child
labor, forced labor, involuntary
labor and sexual harassment in
the last financial year, and those
that are pending, as on the end
of the financial year.
Our anti-discrimination and anti-harassment policies apply to everyone involved in the operations of the Company,
including vendors and clients. The forums to deal with issues and concerns raised by our employees are as follows:
• Hearing Employees and Resolving (HEAR)
• Anti-Sexual Harassment Initiative (ASHI)
• Whistleblower Policy (WB)
The details of concerns and grievances raised in fiscal 2021 are as follows:
Concerns and grievances
Workplace harassment(1)
Workplace concerns(2)
Employee disciplinary issues – major(3)
Employee disciplinary issues – minor(4)
Total
Closure statistics
Internal arbitration
Disciplinary action
Open cases(5)
Total
Scope: Infosys Group
(1) Workplace harassment – Refers to all major and minor sexual harassment issues heard and resolved at the workplace, including the virtual workplace.
25
906
269
518
1,718
903
809
6
1,718
(We are reporting cases involving employees only)
(2) Workplace concerns – Refers to grievances employees raise at the workplace.
(3) Major – These cases involve reputation risk to the Company / employees, fraud or other ethical misconduct, including disciplinary action taken on
individuals on account of incorrect data provided at the time of joining.
(4) Minor – These cases refer to misdemeanors or mistakes that can be corrected.
(5) Neutral panel investigations are in progress for 6 open cases as on May 20, 2021.
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Principle No.
Description
Response
The details of workplace sexual harassment complaints in India, reported as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013, are as follows:
Particulars
Number of complaints received(1)
Disposal by conciliation
Disposed of due to other reasons (false / mala
fide complaints, lack of evidence, anonymous
and lack of sufficient material / document /
evidence)
Disciplinary issues – major
Disposal by disciplinary action(s)
Reported in March 2021 and the investigation
process was underway as on May 20, 2021
Number of cases pending for more than
90 days
Employee coverage through workshops or
awareness programs conducted on sexual
harassment
Nature of action taken by the employer or
District Officer
In fiscal 2021
16
3
–
3
9
1
–
• Mandatory onboarding sessions for new hires covering
approximately 20,000+ laterals and 19,000+ freshers through the
year.
• Awareness programs extended to all employees – monthly mailers
• Segmented awareness sessions covering 2,500+ leaders, managers,
and employees.
• 100% compliance to ASHI awareness quiz by all employees
Warning / sensitization, suspension, transfer of work location,
monetary impact, withholding of promotions / onsite opportunities,
termination of employment, etc.
(1) These cases pertain to inquiries done by the Internal Committee of the Company. During fiscal 2021, there were 3 complaints received, involving
respondents from third parties, that have been addressed by the Internal Committees of such third parties.
More details on “Resolution Hubs” will be available in our ESG Report at https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf.
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Description
Response
3.8
What percentage of your under
mentioned employees were given
safety and skill up-gradation
training in the last year?
• Permanent employees
• Permanent women employees
• Casual / temporary /
contractual employees
• Employees with disabilities
Skill upgradation: Our training programs cover all our employees irrespective of race, gender, or physical disability.
Our Education, Training and Assessment (ETA) group offers industry-benchmarked learning programs to ensure talent
enablement.
The total number of training days for the last three years is as follows:
Particulars
Employee count
Fiscal 2021
2,58,586
Fiscal 2020
2,42,371
Fiscal 2019
2,28,123
29,40,728
25,76,913
Total training days
Safety: Ozone, our Health, Safety and Environmental Management System (HSEMS) seeks to provide a safe and healthy
workplace for our employees, visitors, and contract workers. The initiative also keeps personnel well-informed, trained,
and committed to our Health, Safety and Environment (HSE) Policy and procedures.
The HSE training needs are identified for different personnel based on the nature of their jobs. Accordingly,
training – including awareness sessions, mock drills, classroom sessions, and periodic demonstrations related to safety,
security and wellbeing – is provided. HSEMS training is also part of our employee-induction programs. E-learning
modules have also been rolled out for creating awareness. Please refer to the ‘Occupational Health and Safety’ section in
our ESG Report, available at https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf.
28,71,288
P4 – Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
4.1
4.2
4.3
Has the Company mapped
its internal and external
stakeholders?
Out of the above, has the
Company identified the
disadvantaged, vulnerable and
marginalized stakeholders?
Are there any special initiatives
undertaken by the Company to
engage with the disadvantaged,
vulnerable and marginalized
stakeholders? If so, provide the
details thereof, in about 50 words
or so.
Yes. The details are provided on our website, at
https://www.infosys.com/about/corporate-responsibility/our-stakeholders.html
Yes. The details are provided under the ‘Infosys Foundation’ tab on our website, at www.infosys.org
Yes, as a socially-responsible organization, we are committed to working for the welfare of the communities around us.
Our community engagement interventions include:
• Grant-making
• Organization-led projects
• Employee-driven initiatives
• Community sabbaticals
For more details on our work with communities, refer to Annexure 6 to the Board’s report in the Annual Report and our
websites, www.infosys.org and https://www.infosys.com/about/corporate-responsibility.html
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Principle No.
Description
Response
P5 – Businesses should respect and promote human rights.
5.1
5.2
Does the policy of the Company
on human rights cover only the
Company or extend to the Group
/ Joint Ventures / Suppliers /
Contractors / NGOs / Others?
How many stakeholder
complaints have been received in
the past financial year, and what
percentage was satisfactorily
resolved by the Management?
Yes, all companies in the Infosys Group, including employees and contractors are covered by the policy.
Our stakeholder engagement processes are robust and have strong listening mechanisms.
Additionally, all stakeholders have access to the Whistleblower Policy of Infosys at
https://www.infosys.com/investors/corporate-governance/Documents/whistleblower-policy.pdf.
Refer to the table under P1 (1.2) for more information.
P6 – Business should respect, protect, and make efforts to restore the environment.
6.1
6.2
6.3
Does the policy related to
Principle 6 cover only the
Company, or does it extend to
the Group / Joint Ventures /
Suppliers / Contractors / NGOs /
Others?
Protection of the environment ranks high among our corporate goals, and as a responsible corporate citizen, we have
established a global HSE policy, which defines our commitment to ensuring environmental protection. The policy is
made available to all our employees worldwide on our intranet, through posters and instructions on digital and physical
display areas across our campuses. It is also published in our Corporate Responsibility microsite. We are certified to ISO
14001:2015 and ISO 45001:2018 at 100% of identified locations in India. All personnel working for or on behalf of the
organization are expected to mandatorily adhere to the established HSE policy and procedures. Vendor partners are also
encouraged to follow our stated HSE requirements and ensure compliance as detailed in our agreements. Audits of our
suppliers are also conducted to evaluate their adherence to our requirements.
Does the Company have
strategies / initiatives to address
global environmental issues,
such as climate change, global
warming, etc? Yes / No. If yes,
please give the hyperlink for the
web page, etc.
Global environmental issues, including climate change, plastic pollution, etc. are addressed as part of our business
context. Climate action has been on our agenda and continues to form a significant part of our ESG vision for the next
decade as well. From identifying energy efficiency opportunities to switching to clean renewable sources of energy to even
helping our clients in their transformation journey, Infosys has been a front-runner.
Infosys received the UN Global Climate Action Award (Carbon Neutral Now category) in 2019 in recognition of its efforts
on environmental sustainability.
For more details, visit our Corporate Responsibility microsite, at https://www.infosys.com/about/corporate-responsibility.
html and Infosys ESG vision 2030 at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-
responsibility/esg-vision-2030/index.html
Does the Company identify and
assess potential environmental
risks?
Our operations, including new developments and new / modified activities, products and services, may have aspects
that could have an impact on the surrounding environment. Significant aspects are identified, monitored, measured, and
managed in a structured manner to minimize or control their impacts and achieve continual improvement. Some of the
top environmental risks identified are in the areas of energy, water, climate change, and waste.
Environmental risks form a part of our operational risks in the ‘Integrated Enterprise Risk Management’ framework.
Read our ESG Report at https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf and Infosys
ESG vision 2030 at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/
index.html for information on the progress of our environmental sustainability efforts.
Principle No.
Description
Response
Does the Company have any
project related to the Clean
Development Mechanism? If so,
provide details thereof, in about
50 words or so. Also, if yes, has
any environmental compliance
report been filed?
Infosys does not buy any credits from the carbon market (CDM/VCS). Instead, the Company runs its own
community-based carbon offset projects in collaboration with various NGOs and implementation agencies. The projects
include:
i) Household biogas project – 3
ii) Improved cookstove project – 5
The projects cover over 1,19,000 families in rural India. The projects are in various stages of implementation and
issuance.
Has the Company undertaken
any other initiatives on clean
technology, energy efficiency,
renewable energy, etc.? Yes / No.
If yes, please give the hyperlink
for the web page, etc.
We are committed to clean technology and transitioning to renewable energy for our operations. Till date, we have
invested in solar photovoltaic (PV) plant capacity of about 60 MW in India, (in-campus as well as off-site). In fiscal 2021,
about 50% of our electricity consumption in India was met through renewable sources. In fiscal 2021, about 1 million
sq.ft of space was added to the existing certified “green buildings”, bringing the total to 26.07 million sq.ft, making
Infosys campuses some of the most efficient places to work from.
For more details, visit our website, www.infosys.com, and our Corporate Responsibility microsite, at
https://www.infosys.com/about/corporate-responsibility.html
Are the emissions / waste
generated by the Company
within the permissible limits
given by CPCB / SPCB for the
financial year being reported?
Number of show cause / legal
notices received from CPCB /
SPCB which are pending (i.e.,
not resolved to satisfaction) as on
the end of the financial year.
We comply with all applicable environmental legislations in the locations we operate from. All parameters as defined by
CPCB or SPCBs are monitored, tracked and maintained within norms.
For more details, visit our Corporate Responsibility microsite, at https://www.infosys.com/about/corporate-responsibility.html
We did not have any monetary or non-monetary sanctions imposed on us for non-compliance with environmental laws
and regulations during fiscal 2021.
6.4
6.5
6.6
6.7
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Principle No.
Description
Response
P7 – Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
7.1
Is your Company a member
of any trade and chamber or
association? If yes, name only
those major ones that your
business deals with.
7.2
Have you advocated / lobbied
through the above associations
for the advancement or
improvement of public good?
Yes / No. If yes, specify the
broad areas (Governance and
Administration, Economic
Reforms, Inclusive Development
Policies, Energy Security, Water,
Food Security, Sustainable
Business Principles, Others).
Yes, as an industry influencer, we are part of global and local associations. We forge strategic partnerships with industry bodies
and consortiums at the local, national, and international levels. The following are the significant associations during fiscal 2021:
India:
• National Association of Software and Services
Companies (NASSCOM)
• Confederation of Indian Industry (CII)
• Federation of Indian Chambers of Commerce and
Industry (FICCI)
Overseas:
• US Chamber of Commerce
• Advisory group on “Energy Efficiency in India Data
Center” by CII-IGBC and Lawrence Berkeley National
Laboratory, US
• United Nations Economic and Social Commission for
Asia and the Pacific (UNESCAP)
• United States Green Building Council (USGBC)
• World Economic Forum (WEF)
• Business Council of Australia (BCA)
• Trans-Tasman Business Circle (TTBC)
• Indo-Australian Chamber of Commerce
• Australian HR Institute (AHRI)
• Australian Network on Disability (AND)
• Australian Information Industry Association (AIIA)
• New Zealand and India Trade Associations (NZITA)
• Alliance for an Energy Efficient Economy (AEEE), India
• Indian Green Building Council (IGBC)
• US-India Business Council
• US-Strategic Partnership Forum
• Confederation of British Industry
• techUK
• Bitkom (Germany)
• National Foundation for American Policy
• TechPoint (Indiana)
• Greater Raleigh Chamber of Commerce
• North Carolina Technology Association
• Greater Providence Chamber of Commerce
• ReadyCT (Connecticut)
• AdvanceCT (Connecticut)
• Arizona Technology
• Indiaspora
We believe that it is our responsibility to help build a better business environment and thus a better world with
opportunities for everyone. Our advocacy efforts are championed across the world by our senior leaders. In an effort to
drive advocacy globally and locally, we have been part of governance bodies of national and international organizations
across economic, social, and environmental dimensions.
For more details, visit https://www.infosys.com/sustainability/about-us/overview/Pages/partnerships.aspx.
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Principle No.
Description
Response
P8 – Businesses should support inclusive growth and equitable development.
8.1
8.2
8.3
8.4
Does the Company have
specified programs / initiatives /
projects in pursuit of the policy
related to Principle 8? If yes,
provide the details thereof.
Are the programs / projects
undertaken through an in-house
team / own foundation / external
NGO / government structures /
any other organization?
Have you done any impact
assessment of your initiative?
What is your Company’s direct
contribution to community
development projects – amount
in ` and the details of the
projects undertaken.
Our corporate social responsibility supports inclusive growth not only of communities in the locations where we operate,
but also encompasses the overall development of societies and human capabilities. From ensuring the wellbeing of the
poorest sections of society through the Infosys Foundation, promoting science and math education in the US through
the Infosys Foundation USA, encouraging science and research through the Infosys Science Foundation, increasing the
employability of engineering students through InfyTQ, our online learning platform, digital skilling at scale for students
and the community through Infosys Headstart, to empowering our employees to become responsible citizens through
volunteering, we will continue to strive towards inclusive growth and community development.
For more details on our work with communities, refer to Annexure 6 to the Board’s report in the Annual Report and
www.infosys.org
Infosys has established foundations in India and the US. For more details on our work with the community, visit
www.infosys.org
Yes. The Infosys Foundation works in the areas of Education, Rural Development, Healthcare, Arts and Culture, and
Destitute Care. Its mission is to work with all sections of society, especially in areas that are traditionally overlooked
by the society at large. The projects are based in various states in the country, including, Karnataka, Andhra Pradesh,
Arunachal Pradesh, Bihar, Delhi, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab,
Rajasthan, Tamil Nadu, Uttarakhand, and West Bengal.
The CSR Impact Assessments were carried out across 99 projects spanning the focus areas of Education, Rural
Development, Healthcare, Arts and Culture, and Destitute Care over a four-year period. Projects were selected based on
their nature and duration as well as the maturity of implementation practices. The objective of the impact assessment is to
make available timely and comprehensive data and insights to the Foundation to enable appropriate action on the ground
and take informed decisions related to progress, evaluation, funding, and priorities.
The assessment essentially follows a multi-methodology process-outcome evaluation and is guided by the monitoring
& evaluation (M&E) framework of the grant. It employs an iterative process to engage on one hand the funder and the
grant recipient to gain understanding of the funding objectives and expectations, and on the other draw information from
various stakeholder communities using exhaustive participatory techniques.
The Company takes cognizance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Amendment
Rules, 2021, and details of impact assessments will be provided in accordance with this from fiscal 2022.
More details about the projects are available through the Foundation’s Reports at www.infosys.org
Refer to Annexure 6 to the Board’s report in the Annual Report. For more details on our work with the community, visit
www.infosys.org and https://www.infosys.com/infosys-foundation/about/reports.html
Principle No.
Description
Response
8.5
Have you taken steps to
ensure that this community
development initiative is
successfully adopted by the
community? Please explain in 50
words or so.
Yes, a majority of our community development projects go beyond the philanthropic one-time engagement and are
designed for self-sustenance through a ‘teach fishing’ model, with increased involvement from the local community and
administration. For more details on our work with the community, visit www.infosys.org and https://www.infosys.com/
infosys-foundation/about/reports.html
P9 – Businesses should engage with and provide value to their customers and consumers in a responsible manner.
9.1
9.2
9.3
What percentage of client
complaints / consumer cases are
pending as on the end of the
financial year?
None
Not applicable
We have various mechanisms to receive and address complaints from stakeholders related to compliance, corruption
or bribery. As of March 31, 2021, no stakeholder has filed any cases against the Company, nor are any cases pending
regarding unfair trade practices, irresponsible advertising and / or anti-competitive behavior.
Does the Company display
product information on the
product label, over and above
what is mandated as per local
laws? Yes / No / NA / Remarks
(additional information).
Is there any case filed by any
stakeholder against the Company
regarding unfair trade practices,
irresponsible advertising, and / or
anti-competitive behavior during
the last five years and pending as
on the end of the financial year?
If so, provide the details thereof,
in about 50 words or so.
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Principle No.
Description
Response
9.4
Did your Company carry out
any consumer survey / measure
consumer satisfaction trends?
Customer-focused excellence demands constant sensitivity to changing and emerging customer requirements and close
attention to the voice of the customer. We interact with our clients on a regular basis and across multiple platforms.
In addition to various client interactions, we have adopted a formal and robust approach in the form of an annual Client
Value Survey. The survey enables us to comprehensively understand the client’s expectations and needs and serves as one
of the inputs for us to make investment decisions. The survey framework includes a structured questionnaire and the
feedback is collected through a web survey hosted by an independent organization. The survey is designed to provide the
following insights:
• Client expectations and fulfilment
• Client disposition: Overall experience of working with Infosys: satisfaction, loyalty, advocacy, and value for money.
• Client priorities
• Service line feedback
The account teams use this data to review their relationships with clients and to design interventions that create a positive
and visible impact on our clients. Various members across levels engage with the clients to implement the improvement
actions.
A significantly higher number of clients responded to the survey in fiscal 2021 and a majority of them are happy with the
way Infosys has quickly adapted to the situation arising from the pandemic and continues to create client value.
Infosys’ customer experience has improved significantly to the highest ever levels this year. All key measures of
expectations and fulfilment, client disposition, and service line feedback have significantly improved over the
previous year.
For more details on our business and sustainable practices, visit our website, www.infosys.com/investors/reports-filings and https://www.infosys.com/about/corporate-responsibility.html
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Investor contacts
For queries relating to financial statements
Jayesh Sanghrajka
EVP, Deputy Chief Financial Officer
Tel: 91 80 2852 1705 Fax: 91 80 2852 0754
Email: jayesh.sanghrajka@infosys.com
Investor correspondence
Sandeep Mahindroo
VP, Financial Controller & Head – Investor Relations
Tel: 91 80 3980 1018 Fax: 91 80 2852 0754
Email: sandeep_mahindroo@infosys.com
For queries relating to shares / dividend /
compliance
A.G.S. Manikantha
AVP, Company Secretary
Tel: 91 80 4116 7775 Fax: 91 80 2852 0754
Email: investors@infosys.com
Depositary bank (ADS)
For queries relating to the business
responsibility report
Aruna C. Newton
AVP, Head – Diversity and Inclusion
Tel: 91 80 2852 0261
Email: arunacnewton@infosys.com
Registrar and share transfer agents
KFin Technologies Private Limited
Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad 500 032
Contact person
C. Shobha Anand
Deputy General Manager, KFin Technologies Private Limited
Toll-Free Number: 1800-309-4001
Email: einward.ris@kfintech.com
United States
Custodian in India (ADS)
ICICI Bank Limited
Securities Market Services
1st Floor, Empire Complex, 414, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013,
Maharashtra, India.
Tel: 91 82919 02703
Fax: 91 22 6667 2779
Deutsche Bank Trust Company Americas
Deutsche Bank, 60 Wall Street, 24th Floor
Global Transaction Banking
Depositary Receipts
New York 10005, NY, US
Tel: 1 212 250 2500 Fax: 1 732 544 6346
India
Deutsche Bank AG, Filiale Mumbai
Global Transaction Banking – Depositary Receipts
The Capital, C-70, G Block
Bandra Kurla Complex, Mumbai 400 051, India
Tel: 91 22 7180 4875 Fax: 91 22 7180 3794
Depository for equity shares in India
National Securities Depository Limited
Trade World, ‘A’ Wing, 4th Floor
Kamala Mills Compound Senapati Bapat Marg,
Lower Parel, Mumbai 400 013, India
Tel: 91 22 2499 4200 Fax: 91 22 2497 6351
Central Depository Services (India) Limited
Marathon Futurex, A-Wing,
25th Floor, Mafatlal Mills Compound
NM Joshi Marg, Lower Parel (East), Mumbai 400 013
Tel: 91 22 2300 2041 / 2300 2033 Fax: 91 22 2300 2036
298 | Investor contacts
Infosys Annual Report 2020-21
Addresses of stock exchanges
In India
National Stock Exchange of India Ltd.
Exchange Plaza, Plot No. C / 1, G Block
Bandra Kurla Complex
Bandra (East), Mumbai 400 051, India
Tel: 91 22 2659 8100-14 / 6641 8100
BSE Ltd.
Phiroze Jeejeebhoy Towers
Dalal Street, Kala Ghoda, Mumbai 400 001, India
Tel: 91 22 2272 1233/4, 91 22 6654 5695 (Hunting)
Outside India
New York Stock Exchange
11 Wall Street, New York, NY 10005, US
Tel: 1 212 656 3000
Infosys Annual Report 2020-21
Investor contacts | 299
Safe Harbor
This Annual Report contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and
uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance
and are based on our current expectations, assumptions, estimates and projections about the Company, our industry,
economic conditions in the markets in which we operate, and certain other matters. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’,
‘intend’, ‘will’, ‘project’, ‘seek’, ‘should’ and similar expressions. Those statements include, among other things, risks and
uncertainties regarding COVID-19 and the effects of government and other measures seeking to contain its spread, the
discussions of our business strategy, including the localization of our workforce and investments to reskill our employees
and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, wage
increases in India, change in the Indian regulations governing wages, restrictions on immigration in the US, and corporate
actions including timely completion of the proposed buyback of our equity shares.
These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results
or outcomes to differ materially from those implied by the forward-looking statements. Important factors that may cause
actual results or outcomes to differ from those implied by the forward-looking statements include, but are not limited to, those
discussed in the “Outlook, risks and concerns” section in this Annual Report. In the light of these and other uncertainties, you
should not conclude that the results or outcomes referred to in any of the forward-looking statements will be achieved. All
forward-looking statements included in this Annual Report are based on information and estimates available to us on the date
hereof, and we do not undertake any obligation to update these forward-looking statements unless required to do so by law.
Creative concept and design by Communication Design Group, Infosys Limited.
© 2021 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.
Infosys Annual Report 2020-21
Dear Member,
You are cordially invited to attend the 40th Annual General Meeting of the members of Infosys Limited (“the Company”)
to be held on Saturday, June 19, 2021 at 4:00 p.m. IST through video conference and other audio-visual means ("VC").
The Notice of the meeting, containing the business to be transacted, is enclosed herewith. As per Section 108 of
the Companies Act, 2013 ("the Act"), read with the related rules and Regulation 44 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended (“the LODR Regulations”), the Company is pleased
to provide its members the facility to cast their vote by electronic means on all resolutions set forth in the Notice.
May 18, 2021
Very truly yours,
Sd/-
Nandan M. Nilekani
Chairman
Enclosures:
1. Notice of the 40th Annual General Meeting
2. Instructions for participation through VC
3. Instructions for e-voting
Note: Attendees who require technical assistance to access and participate in the meeting through VC are requested to contact either of these
helpline numbers: +91 80 4156 5555 / +91 80 4156 5777
INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261
Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com
Notice of the 40th Annual General Meeting
Notice is hereby given that the 40th Annual General Meeting ("AGM") of the members of Infosys Limited will be held
on Saturday, June 19, 2021, at 4:00 p.m. IST through video conference / other audio-visual means ("VC") to transact
the following business:
Ordinary business
Item no. 1 – Adoption of financial statements
To consider and adopt the audited financial statements (including the consolidated financial statements) of the Company
for the financial year ended March 31, 2021 and the reports of the Board of Directors (“the Board”) and auditors thereon.
Item no. 2 – Declaration of dividend
To declare a final dividend of ` 15 per equity share for the year ended March 31, 2021.
Item no. 3 – Appointment of U.B. Pravin Rao as a director liable to retire by rotation
To appoint a director in place of U.B. Pravin Rao (DIN: 06782450), who retires by rotation and, being eligible,
seeks reappointment.
Explanation: Based on the terms of appointment, executive directors and the non-executive and non-independent
chairman are subject to retirement by rotation. U.B. Pravin Rao, who was appointed on August 18, 2017 and whose office
is liable to retire at the ensuing AGM, being eligible, seeks reappointment. Based on performance evaluation and the
recommendation of the nomination and remuneration committee, the Board recommends his reappointment. U.B. Pravin
Rao will be superannuating on December 12, 2021 as per the Company’s policy.
Therefore, members are requested to consider and if thought fit, pass the following resolution as an ordinary resolution:
RESOLVED THAT, pursuant to the provisions of Section 152 and other applicable provisions of the Companies Act, 2013,
U.B. Pravin Rao (DIN: 06782450), who retires by rotation, be and is hereby reappointed as a director to hold office up
to December 12, 2021.
Special business
Item no. 4 - Approval for the buyback of equity shares of the Company
To consider and if thought fit, to pass the following resolution as a special resolution:
RESOLVED THAT, in accordance with Article 14 of the Articles of Association of the Company and the provisions of
Sections 68, 69 and 70 and all other applicable provisions, if any, of the Companies Act, 2013, as amended (“the Act”), the
Companies (Share Capital and Debentures) Rules, 2014, as amended (“Share Capital Rules”), the Companies (Management
and Administration) Rules, 2014, as amended (“the Management Rules”) and Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“the LODR Regulations”), including
any amendments, statutory modifications or re-enactments thereof, for the time being in force and in compliance with the
Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended (“the Buyback Regulations”),
subject to such other approvals, permissions and sanctions, as may be necessary, and subject to any modifications and
conditions, if any, as may be prescribed by the appropriate authorities, which may be agreed to by the Board of Directors of
the Company (hereinafter referred to as the “Board”, which expression includes any committee duly constituted by the Board
to exercise its powers, and / or the powers conferred by this resolution), and subject to such conditions and modifications as
may be prescribed or imposed by government, regulatory, statutory or appropriate authorities, the consent of the members
is hereby accorded for the buyback by the Company of its fully-paid-up equity shares of face value of ₹ 5 (Rupees Five)
each (“Equity Shares”), from the members of the Company (except promoters, promoter group and persons in control of
the Company) at a price not exceeding ₹ 1,750/- (Rupees One Thousand Seven Hundred and Fifty only) per equity share
(“Maximum Buyback Price”) and such aggregate amount, up to ₹ 9,200 crore (Rupees Nine Thousand Two Hundred crore
only) (“Maximum Buyback Size”), representing 14.87% and 13.53% of the aggregate of the total paid-up share capital and
free reserves of the Company based on the latest audited financial statements of the Company as at March 31, 2021 (on
a standalone and consolidated basis, respectively) (“Buyback”). The Maximum Buyback Size does not include transaction
costs, namely brokerage, filing fees, advisory fees, intermediaries’ fees, public announcement publication expenses, printing
and dispatch expenses, applicable taxes such as buyback tax, securities transaction tax, goods and services tax, stamp duty
etc. and other incidental and related expenses (“Transaction Costs”). The Buyback period shall commence from the date of
the passing of the special resolution until the last date on which the payment of consideration for the Equity Shares bought
back by the Company is made (“Buyback Period”), in accordance with and consonance with the provisions contained in the
Buyback Regulations, the Act, Share Capital Rules, the Management Rules and the LODR Regulations.
2 | Notice of the 40th Annual General Meeting
Infosys Limited RESOLVED FURTHER THAT subject to the market price of the Equity Shares being equal to the Maximum Buyback Price,
the indicative maximum number of Equity Shares bought back would be 5,25,71,428 Equity Shares (“Maximum Buyback
Shares”) comprising approximately 1.23% of the total paid-up equity share capital of the Company as of March 31, 2021
(on a standalone basis). If the Equity Shares are bought back at a price below the Maximum Buyback Price, the number of
Equity Shares bought back could exceed the Maximum Buyback Shares, but will always be subject to the Maximum Buyback
Size. The Company shall utilize at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback, i.e.
₹ 4,600 crore (Rupees Four Thousand Six Hundred crore only) (“Minimum Buyback Size”). Based on the Minimum Buyback
Size and Maximum Buyback Price, the Company would purchase a minimum of 2,62,85,714 Equity Shares.
RESOLVED FURTHER THAT the Company shall implement the Buyback out of its free reserves, and the Buyback shall
be undertaken through the open market route through the Indian stock exchanges, on such terms and conditions as
the Board may deem fit.
RESOLVED FURTHER THAT the Company proposes to utilize at least 50% (fifty percent) of the Maximum Buyback Size, i.e.
₹ 4,600 crore (Rupees Four Thousand Six Hundred crore only) for the Buyback, representing 7.44% and 6.76% of the total
paid-up equity share capital and free reserves of the Company as on March 31, 2021 (on a standalone basis and consolidated
basis, respectively).
RESOLVED FURTHER THAT the Buyback would be subject to the requirement of maintaining the minimum public
shareholding, as specified in Regulation 38 of the LODR Regulations.
RESOLVED FURTHER THAT in terms of Regulation 20 of the Buyback Regulations, an escrow account be opened with Kotak
Mahindra Bank Limited (“Escrow Agent”) by the name of Infosys Ltd Buyback – Escrow Account (“Escrow Account”) for the
purpose of the Buyback and a deposit in cash of a sum equivalent to 2.5% of the Maximum Buyback Size shall be maintained
at all points of time, in the escrow account until fulfillment of the Company’s obligations under the Buyback Regulations.
RESOLVED FURTHER THAT the Company may create a bank guarantee in favour of the Manager to the Buyback in
accordance with the Buyback Regulations, which together with the cash deposited in the Escrow Account shall make up
the requisite escrow amount under the Buyback Regulations.
RESOLVED FURTHER THAT in the event of non-fulfillment of the obligations under the Buyback Regulations by the
Company, the monies deposited in the Escrow Account to the extent of 2.5% (two and a half percent) of the Maximum
Buyback Size may be forfeited as per the terms of Regulation 20 of the Buyback Regulations, and the amount forfeited
shall be deposited in the Investor Protection and Education Fund of the Securities and Exchange Board of India (“SEBI”).
RESOLVED FURTHER THAT the Buyback shall, in any case, close within 6 (six) months from the date of opening of the
Buyback or such other period as may be permitted under the Act or Buyback Regulations. The Board, in its absolute
discretion, may decide to close the Buyback at any time, provided that at least 50% (fifty percent) of the Maximum Buyback
Size is utilized for buying back the Equity Shares, by giving appropriate notice of such earlier date of closure of the Buyback
and completing all formalities in this regard as per relevant laws and regulations.
RESOLVED FURTHER THAT the Buyback from the members who are residents outside India including foreign corporate
bodies (including erstwhile overseas corporate bodies), foreign institutional investors / foreign portfolio investors,
non-resident Indians, members of foreign nationality and ADS holders with underlying Equity Shares consequent to
the withdrawal of such Equity Shares, if any, shall be subject to the Foreign Exchange Management Act, 1999 and rules
and regulations framed thereunder, if any, the Income-tax Act, 1961 and rules and regulations framed thereunder, the
Depository Receipts Scheme, 2014, as applicable, and also subject to such approvals, if and to the extent necessary or
required from concerned authorities including, but not limited to, approvals from the Reserve Bank of India (“RBI”) under
the Foreign Exchange Management Act, 1999 and rules and regulations framed thereunder, if any.
RESOLVED FURTHER THAT nothing contained hereinabove shall confer any right on the part of any member to offer, or
any obligation on the part of the Company or the Board to buy back any Equity Shares and / or impair any power of the
Company or the Board to terminate any process in relation to such Buyback if so permissible by law.
RESOLVED FURTHER THAT the Board be and is hereby authorized to do all such acts, deeds, matters and things as it
may, in its absolute discretion deem necessary, expedient or proper, for the implementation of the Buyback, including but
not limited to the appointment of merchant bankers, brokers, lawyers, depository participants, escrow agents, bankers,
advisors, registrars, scrutinizers, consultants, representatives, intermediaries, agencies, printers, advertisement agency,
compliance officer, as may be required, for the implementation of the Buyback; carrying out incidental documentation
as also to make applications to the appropriate authorities for requisite approvals and to initiate all necessary actions for
preparation and issue of various documents, opening of accounts including issuing public announcement, extinguishment
of share certificates and ‘Certificate of Extinguishment’ required to be filed in connection with the Buyback on behalf of
the Board and such other undertakings, agreements, papers, documents and correspondence as may be necessary for the
implementation of the Buyback to the SEBI, RBI, Government of India, U.S. Securities and Exchange Commission (“SEC”), BSE
Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (collectively referred to as “Indian Stock Exchanges”),
New York Stock Exchange (“NYSE”), Registrar of Companies, Depositories and / or other authorities.
Notice of the 40th Annual General Meeting | 3
Infosys Limited RESOLVED FURTHER THAT for the purpose of giving effect to this resolution, the Board be and is hereby authorized to
accept and make any alteration(s), modification(s) to the terms and conditions, and delegate such powers, obligations and
responsibilities as it may, and to whomsoever it may deem necessary, concerning any aspect of the Buyback, in accordance
with the applicable statutory requirements as well as to give such directions as may be necessary or desirable, to settle
any questions, difficulties or doubts that may arise and generally, to do all acts, deeds, matters and things as it may, in
its absolute discretion, deem necessary, expedient, usual or proper in relation to or in connection with or for matters
consequential to the Buyback without seeking any further consent or approval of the members or otherwise to the end
and intent that they shall be deemed to have given its approval thereto expressly by the authority of this resolution.
Item no. 5 – Reappointment of Michael Gibbs as an independent director
To consider and if thought fit, to pass the following resolution as a special resolution:
RESOLVED THAT pursuant to the provisions of Sections 149, 152 and other relevant provisions of the Companies Act, 2013
and Rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force),
Articles of Association of the Company, approvals and recommendations of the nomination and remuneration committee,
and that of the Board, Michael Gibbs (DIN: 08177291) who holds office as an independent director up to July 12, 2021 be
and is hereby reappointed as an independent director, not liable to retire by rotation, for a second term of five years with
effect from July 13, 2021 up to July 12, 2026.
RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers to any committee
of directors with power to further delegate to any other officer(s) / authorized representative(s) of the Company to do all
acts, deeds and things and take all such steps as may be necessary, proper or expedient to give effect to this resolution.
Item no. 6 – Appointment of Bobby Parikh as an independent director
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT Bobby Parikh (DIN: 00019437), who was appointed as an additional and independent director, pursuant to
Sections 149, 152 and 161 and other relevant provisions of the Companies Act, 2013 and Rules made thereunder (including
any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Articles of Association of the Company,
approvals and recommendations of the nomination and remuneration committee, and that of the Board, be and is hereby
appointed as an independent director, not liable to retire by rotation, for a period of three years up to July 14, 2023.
RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers to any committee
of directors with power to further delegate to any other officer(s) / authorized representative(s) of the Company to do all
acts, deeds and things and take all such steps as may be necessary, proper or expedient to give effect to this resolution.
Item no. 7 – Appointment of Chitra Nayak as an independent director
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT Chitra Nayak (DIN: 09101763), who was appointed as an additional and independent director, pursuant to
Sections 149, 152 and 161 and other relevant provisions of the Companies Act, 2013 and Rules made thereunder (including
any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Articles of Association of the Company,
approvals and recommendations of the nomination and remuneration committee, and that of the Board, be and is hereby
appointed as an independent director, not liable to retire by rotation, for a period of three years up to March 24, 2024.
RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers to any committee
of directors with power to further delegate to any other officer(s) / authorized representative(s) of the Company to do all
acts, deeds and things and take all such steps as may be necessary, proper or expedient to give effect to this resolution.
Item no. 8 – Approval for changing the terms of remuneration of U.B. Pravin Rao, Chief Operating
Officer and Whole-time Director
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT pursuant to the recommendation of the nomination and remuneration committee dated May 18, 2021
and the approval of the Board through its resolution dated May 18, 2021 and pursuant to the provisions of Section 196, 197
and other applicable provisions of the Companies Act, 2013 and the Rules made thereunder, read with Schedule V of the Act
(including any statutory modification(s) or re-enactments(s) thereof ) and in partial modification to the resolutions approved
by the shareholders at the 38th AGM, in respect of the appointment and remuneration of U.B. Pravin Rao (DIN: 06782450),
Chief Operating Officer and Whole-time Director, consent of the members be and is hereby accorded for revising the terms
of remuneration by including the following:
(i) One-time special bonus of ` 4 crore on his retirement in December 2021, after a career spanning 35 years, in view of
his outstanding contribution to the Company especially for his leadership during the pandemic. Under U.B. Pravin
Rao’s leadership, the Company immediately shifted to remote working and met customer expectations. He led
4 | Notice of the 40th Annual General Meeting
Infosys Limited the comprehensive efforts of the Company to scale up IT infrastructure, enhance focus on employee safety, health
and wellbeing, and managed the operations successfully during the pandemic, demonstrating extraordinary
operational resilience.
(ii) Accelerate vesting of 31,725 Restricted Stock Unites (RSUs) due for vesting during fiscal 2022, which is due for vesting
within 90 days after the retirement date [Total of 31,725 Restricted Stock Units (RSUs) due to vest in fiscal 2022 under
the 2015 Incentive Compensation Plan, of which 17,062 RSUs are due to vest on February 1, 2022 and 14,663 RSUs are
due to vest on February 27, 2022. Total of 46,388 RSUs will be forfeited, of which 31,725 RSUs are due to vest in fiscal
2023 and 14,663 RSUs are due to vest in fiscal 2024].
RESOLVED FURTHER THAT effective from the date of approval of the shareholders of this resolution, the above additional
terms shall be deemed to have been included to the terms and conditions of the appointment and remuneration of
U.B. Pravin Rao (DIN: 06782450), Chief Operating Officer and Whole-time Director, and the executive employment agreement
shall be amended accordingly.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to alter and vary the terms
and conditions of appointment and / or remuneration, subject to the same not exceeding the limits specified under Section
197, read with Schedule V of the Companies Act, 2013 (including any statutory modification(s) or re-enactments(s) thereof,
for the time being in force).
INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261
Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com
May 18, 2021
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
Notes
1. Pursuant to the General Circular nos. 20/2020, 14/2020, 17/2020, 02/2021 issued by the Ministry of Corporate Affairs
("MCA") and Circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/79 and SEBI/HO/CFD/CMD2/CIR/P/2021/11 issued by the SEBI
(hereinafter collectively referred to as “the Circulars”), companies are allowed to hold AGM through VC, without the
physical presence of members at a common venue. Hence, in compliance with the Circulars, the AGM of the Company
is being held through VC.
2. A member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his / her behalf
and the proxy need not be a member of the Company. Since the AGM is being held in accordance with the Circulars
through VC, the facility for the appointment of proxies by the members will not be available.
3. Participation of members through VC will be reckoned for the purpose of quorum for the AGM as per Section 103 of the Act.
4. Members of the Company under the category of Institutional Investors are encouraged to attend and vote at the AGM
through VC. Corporate members intending to authorize their representatives to participate and vote at the meeting
are requested to send a certified copy of the Board resolution / authorization letter to the Scrutinizer by email to
evoting@infosys.com with a copy marked to evoting@nsdl.co.in.
5. The Register of directors and key managerial personnel and their shareholding, maintained under Section 170 of the
Act, and the Register of Contracts or Arrangements in which the directors are interested, maintained under Section 189
of the Act, will be available electronically for inspection by the members during the AGM. All documents referred to in
the Notice will also be available for electronic inspection without any fee by the members from the date of circulation
of this Notice up to the date of AGM, i.e. June 19, 2021. Members seeking to inspect such documents can send an email
to investors@infosys.com.
6. Members whose shareholding is in electronic mode are requested to notify any change in address or bank account
details to their respective depository participant(s) ("DP"). Members whose shareholding is in physical mode are
requested to opt for the Electronic Clearing System ("ECS") mode to receive dividend on time in line with the Circulars.
We urge members to utilize the ECS for receiving dividends. Please refer to point no. 16 for the process to be followed
for updating bank account details.
7. Members may note that the Board, at its meeting held on April 14, 2021, has recommended a final dividend of ` 15
per share. The record date for the purpose of final dividend for fiscal 2021 is June 1, 2021. The final dividend, once
approved by the members in the ensuing AGM, will be paid on June 25, 2021 electronically through various online
Notice of the 40th Annual General Meeting | 5
Infosys Limited transfer modes to those members who have updated their bank account details. For members who have not updated
their bank account details, dividend warrants / demand drafts / cheques will be sent out to their registered addresses.
To avoid delay in receiving dividend, members are requested to update their KYC with their depositories (where shares
are held in dematerialized mode) and with the Company’s Registrar and Transfer Agent ("RTA") (where shares are held
in physical mode) to receive dividend directly into their bank account on the payout date.
8. Members may note that the Income-tax Act, 1961, (“the IT Act”) as amended by the Finance Act, 2020, mandates that
dividends paid or distributed by a company after April 1, 2020 shall be taxable in the hands of members. The Company
shall therefore be required to deduct tax at source ("TDS") at the time of making the payment of final dividend. In order
to enable us to determine the appropriate TDS rate as applicable, members are requested to submit relevant documents,
as specified in the below paragraphs, in accordance with the provisions of the IT Act.
For resident shareholders, taxes shall be deducted at source under Section 194 of the IT Act as follows:
Members having valid Permanent Account Number ("PAN")
Members not having PAN / valid PAN
10% or as notified by the Government of India
20% or as notified by the Government of India
However, no tax shall be deducted on the dividend payable to a resident individual if the total dividend to be received
by them during fiscal 2022 does not exceed ₹ 5,000 and also in cases where members provide Form 15G / Form 15H
(Form 15H is applicable to individuals aged 60 years or more) subject to conditions specified in the IT Act. Resident
shareholders may also submit any other document as prescribed under the IT Act to claim a lower / nil withholding tax.
PAN is mandatory for members providing Form 15G / 15H or any other document as mentioned above.
For non-resident shareholders, taxes are required to be withheld in accordance with the provisions of Section 195
and other applicable sections of the IT Act, at the rates in force. The withholding tax shall be at the rate of 20% (plus
applicable surcharge and cess) or as notified by the Government of India on the amount of dividend payable. However,
as per Section 90 of the IT Act, non-resident shareholders have the option to be governed by the provisions of the
Double Tax Avoidance Agreement (“DTAA”), read with Multilateral Instrument (“MLI”) between India and the country
of tax residence of the member, if they are more beneficial to them. For this purpose, i.e. to avail the benefits under the
DTAA read with MLI, non-resident shareholders will have to provide the following:
• Copy of the PAN card allotted by the Indian income tax authorities duly attested by the member or details as prescribed
under rule 37BC of Income-tax Rules, 1962
• Copy of Tax Residency Certificate for fiscal 2022 obtained from the revenue authorities of the country of tax residence,
duly attested by member
• Self-declaration in Form 10F
• Self-declaration by the member of having no permanent establishment in India in accordance with the applicable
tax treaty
• Self-declaration of beneficial ownership by the non-resident shareholder
• Any other documents as prescribed under the IT Act for lower withholding of taxes if applicable, duly attested
by the member
In case of Foreign Institutional Investors / Foreign Portfolio Investors, tax will be deducted under Section 196D of the
IT Act @ 20% (plus applicable surcharge and cess) or the rate provided in relevant DTAA, read with MLI, whichever is
more beneficial, subject to the submission of the above documents.
The aforementioned documents are required to be uploaded on the shareholder portal at https://www.infosys.com/
investors/shareholder-services/dividend-tax.html on or before June 7, 2021. Members are requested to visit https://
www.infosys.com/investors/shareholder-services/dividend-tax.html for more instructions and information on this
subject. No communication would be accepted from members after June 7, 2021 regarding tax withholding matters.
Shareholders may write to dividend.tax@infosys.com for any clarifications on this subject.
9. Members are requested to address all correspondence, including dividend-related matters, to RTA, KFin Technologies
Private Limited, Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial District, Nanakramguda, Serilingampally
Mandal, Hyderabad 500 032.
10. Members wishing to claim dividends that remain unclaimed are requested to correspond with the RTA as mentioned
above, or with the Company Secretary, at the Company’s registered office or at investors@infosys.com. Members are
requested to note that dividends that are not claimed within seven years from the date of transfer to the Company’s
Unpaid Dividend Account, will be transferred to the Investor Education and Protection Fund ("IEPF"). Shares on which
dividend remains unclaimed for seven consecutive years shall be transferred to IEPF as per Section 124 of the Act, read
with applicable IEPF rules.
11. In compliance with Section 108 of the Act, read with the corresponding rules, Regulation 44 of the LODR Regulations and
in terms of SEBI circular no. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020, the Company has provided a
facility to its members to exercise their votes electronically through the electronic voting (“e-voting”) facility provided
by the National Securities Depository Limited ("NSDL"). Members who have cast their votes by remote e-voting prior to
6 | Notice of the 40th Annual General Meeting
Infosys Limited the AGM may participate in the AGM but shall not be entitled to cast their votes again. The manner of voting remotely
by members holding shares in dematerialized mode, physical mode and for members who have not registered their
email addresses is provided in the "Instructions for e-voting" section which forms part of this Notice. The Board has
appointed Parameshwar G. Hegde of Hegde & Hegde, Practicing Company Secretaries, as the Scrutinizer to scrutinize
the e-voting in a fair and transparent manner.
12. Members holding shares either in physical or dematerialized form, as on cut-off date, i.e. as on June 12, 2021, may
cast their votes electronically. The e-voting period commences on Monday, June 14, 2021 (9:00 a.m. IST) and ends on
Friday, June 18, 2021 (5:00 p.m. IST). The e-voting module will be disabled by NSDL thereafter. A member will not be
allowed to vote again on any resolution on which vote has already been cast. The voting rights of members shall be
proportionate to their share of the paid-up equity share capital of the Company as on the cut-off date, i.e. as on June 12,
2021. A person who is not a member as on the cut-off date is requested to treat this Notice for information purposes only.
13. The facility for voting during the AGM will also be made available. Members present in the AGM through VC and who
have not cast their vote on the resolutions through remote e-voting and are otherwise not barred from doing so, shall
be eligible to vote through the e-voting system during the AGM.
14. Any person holding shares in physical form, and non-individual shareholders who acquire shares of the Company and become
members of the Company after the Notice is sent and holding shares as of the cut-off date, i.e. June 12, 2021, may obtain
the login ID and password by sending a request at evoting@nsdl.co.in. However, if he / she is already registered with NSDL
for remote e-voting, then he / she can use his / her existing user ID and password for casting the vote. In case of individual
shareholders holding securities in demat mode, who acquire shares of the Company and become members of the Company
after the Notice is sent and holding shares as of the cut-off date i.e. June 12, 2021, may follow steps mentioned in the Notice
under “Instructions for e-voting”.
15. In compliance with the Circulars, the Annual Report 2020-21, the Notice of the 40th AGM, and instructions for e-voting
are being sent through electronic mode to those members whose email addresses are registered with the Company /
depository participant(s).
16. We urge members to support our commitment to environmental protection by choosing to receive the Company’s
communication through email. Members holding shares in demat mode, who have not registered their email addresses
are requested to register their email addresses with their respective depository participants, and members holding
shares in physical mode are requested to update their email addresses with the Company’s RTA, KFin Technologies
Private Limited at einward.ris@kfintech.com to receive copies of the Annual Report 2020-21 in electronic mode.
Members may follow the process detailed below for registration of email ID to obtain the Annual Report and update
of bank account details for the receipt of dividend.
Type of holder
Physical
Registering email address
Send a written request to the
RTA of the Company, KFin
Technologies Private Limited at
Selenium Tower B,
Plot 31 & 32, Financial
District, Nanakramguda,
Serilingampally Mandal,
Hyderabad – 500032,
providing Folio Number, name
of member, copy of the share
certificate (front and back),
PAN (self-attested copy of PAN
card), AADHAAR (self-attested
copy of Aadhaar card) for
registering email address.
Process to be followed
Updating bank account details
Send a written request to the RTA of the Company, KFin
Technologies Private Limited at Selenium Tower B, Plot 31 &
32, Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad – 500032, providing Folio Number, name of member,
copy of the share certificate (front and back), PAN (self-attested
copy of PAN card), AADHAAR (self-attested copy of Aadhaar card)
and self-attested copy of the cancelled cheque leaf bearing the
name of the first holder for updating bank account details.
The following additional details / documents need to be provided
in case of updating bank account details:
• Name and branch of the bank in which you wish to receive the
dividend, the bank account type
• Bank account number allotted by their banks after implementation
of core banking solutions
• 9-digit MICR Code Number
• 11-digit IFSC
Demat
Please contact your DP and register your email address and bank account details in your demat
account, as per the process advised by your DP.
17. Members may also note that the Notice of the 40th AGM and the Annual Report 2020-21 will also be available on
the Company’s website, https://www.infosys.com/investors/reports-filings/annual-report/Pages/annual-reports.aspx,
websites of the stock exchanges, i.e. BSE and NSE, at www.bseindia.com and www.nseindia.com, respectively, and on
the website of NSDL https://www.evoting.nsdl.com.
18. Additional information, pursuant to Regulation 36 of the LODR Regulations, in respect of the directors seeking
appointment / reappointment at the AGM, forms part of this Notice.
Notice of the 40th Annual General Meeting | 7
Infosys Limited 19. SEBI has mandated the submission of PAN by every participant in the securities market. Members holding shares in
electronic form are, therefore, requested to submit their PAN to their depository participant(s). Members holding shares
in physical form are required to submit their PAN details to the RTA.
20. As per the provisions of Section 72 of the Act, the facility for submitting nomination is available for members in respect
of the shares held by them. Members who have not yet registered their nomination are requested to register the same
by submitting Form No. SH-13. The form can be downloaded from the Company’s website at https://www.infosys.com/
investors/shareholder-services/documents/form-sh-13-14.pdf. Members are requested to submit these details to their
DP in case the shares are held by them in electronic form, and to the RTA, in case the shares are held in physical form.
21. The Scrutinizer will submit his report to the Chairman of the Company ("the Chairman") or to any other person authorized
by the Chairman after the completion of the scrutiny of the e-voting (votes cast during the AGM and votes cast through
remote e-voting), not later than 48 hours from the conclusion of the AGM. The result declared along with the Scrutinizer’s
report shall be communicated to the stock exchanges, NSDL and RTA, and will also be displayed on the Company’s
website, www.infosys.com.
22. Since the AGM will be held through VC in accordance with the Circulars, the route map, proxy form and attendance slip
are not attached to this Notice.
INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261
Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com
May 18, 2021
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
8 | Notice of the 40th Annual General Meeting
Infosys Limited Explanatory statement
Item no. 4 – Approval for the Buyback of Equity Shares of the Company
The Board, at its meeting held on July 12, 2019, reviewed and approved the Capital Allocation Policy of the Company after
taking into consideration the strategic and operational cash requirements of the Company in the medium term.
The Board decided to return approximately 85% of the free cash flow cumulatively over a five-year period through a
combination of semi-annual dividends and / or share buyback and / or special dividends, subject to applicable laws and
requisite approvals, if any. Free cash flow is defined as net cash provided by operating activities less capital expenditure as
per the Consolidated Statement of Cash Flows prepared under the International Financial Reporting Standards as issued
by the International Accounting Standards Board (“IFRS”). Dividend and buyback include applicable taxes.
In line with the above Capital Allocation Policy and with an objective of enhancing member returns, the Board, at its meeting
held on April 14, 2021, has approved the proposal for recommending buyback of Equity Shares of Maximum Buyback Size
of up to ₹ 9,200 crore (Rupees Nine Thousand Two Hundred crore only) as contained in the resolution in this Notice.
Since the Buyback is more than 10% of the total paid-up equity capital and free reserves of the Company, in terms of
Section 68(2)(b) of the Act, it is necessary to obtain the consent of the members of the Company, to the Buyback, by way
of a special resolution. Accordingly, the Company is seeking your consent for the buyback of Equity Shares as contained
in the special resolution. Requisite details relating to the Buyback are given below.
1. Necessity for the Buyback
The Buyback is being undertaken by the Company after taking into account the strategic and operational cash needs in the
medium term and for returning surplus funds to the members in an effective and efficient manner. The Buyback is being
undertaken for the following reasons:
i. The Buyback will help the Company to return surplus cash to its members;
ii. The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per
share by reduction in the equity base in the long term, thereby leading to long-term increase in members’ value; and
iii. The Buyback gives an option to the members of the Company, either to sell their Equity Shares and receive cash or
not to sell their Equity Shares and get a resultant increase in their percentage shareholding in the Company post the
Buyback, without additional investment.
2. Maximum amount required under the Buyback and its percentage of the total paid-up capital and
free reserves
The maximum amount of funds required for the Buyback will not exceed ₹ 9,200 crore (Rupees Nine Thousand Two
Hundred crore only), being 14.87% and 13.53% of the aggregate of the total paid-up share capital and free reserves of
the Company, which is less than 15% of the aggregate of the total paid-up share capital and free reserves of the Company
based on the latest audited financial statements of the Company as at March 31, 2021 (on a standalone and consolidated
basis, respectively).
The Maximum Buyback Size does not include any expenses or transaction costs incurred or to be incurred for the Buyback,
such as brokerage, filing fees, advisory fees, intermediaries’ fees, public announcement publication expenses, printing and
dispatch expenses, applicable taxes such as buyback tax, securities transaction tax, goods and services tax, stamp duty etc.
and other incidental and related expenses.
The funds for the implementation of the proposed Buyback will be sourced out of the free reserves of the Company or such
other source as may be permitted by the Buyback Regulations or the Act.
Borrowed funds from banks and financial Institutions, if any, will not be used for the Buyback.
3. The maximum price at which the Equity Shares are proposed to be bought back and the basis of arriving
at such price
The Equity Shares of the Company are proposed to be bought back at a price not exceeding ₹ 1,750/- (Rupees One Thousand
Seven Hundred and Fifty only) per Equity Share. The Maximum Buyback Price has been arrived at after considering various
factors including, but not limited to the trends in the volume weighted average market prices of the Equity Shares on the
Indian Stock Exchanges where the Equity Shares are listed, price earnings ratio, impact on other financial parameters and
the possible impact of Buyback on the earnings per Equity Share.
The Maximum Buyback Price represents:
i. Premium of 31.27% and 31.14% over the volume weighted average market price of the Equity Shares on BSE and NSE,
respectively, during the three months preceding the date of intimation (April 11, 2021) to the stock exchanges of the
Board Meeting to consider the proposal of the Buyback.
Notice of the 40th Annual General Meeting | 9
Infosys Limited ii. Premiums of 23.71% and 24.76% over the volume weighted average market price of the Equity Shares on BSE and NSE,
respectively, during the two weeks preceding the date of intimation (April 11, 2021) to the stock exchanges of the Board
Meeting to consider the proposal of the Buyback.
iii. Premiums of 21.46% and 21.44% over the closing price of the Equity Shares on BSE and NSE, respectively as on April 9,
2021, being the last trading date prior to the date of intimation to the stock exchanges of the Board Meeting to consider
the proposal of the Buyback.
Members are advised that the Buyback of the Equity Shares will be carried out through the Indian Stock Exchanges by the
Company, in its sole discretion, based on, among other things, the prevailing market prices of the Equity Shares, which
may be below the Maximum Buyback Price of ₹ 1,750/- per Equity Share.
The quantum of daily purchases by the Company during the Buyback Period may vary from day to day. As permitted by
the Buyback Regulations, the Buyback will be carried out over a maximum period of 6 (six) months, and the prevailing
market price during the voting period for the members’ resolution for the Buyback may not have a bearing on the
outcome of the Buyback.
4. Maximum number of Equity Shares that the Company proposes to buy back
Subject to the market price of the Equity Shares being equal to the Maximum Buyback Price, the indicative maximum
number of Equity Shares bought back would be 5,25,71,428 Equity Shares, comprising approximately 1.23% of the paid-up
capital of the Company as of March 31, 2021 (on a standalone basis). If the Equity Shares are bought back at a price below
the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Maximum Buyback Shares,
but will always be subject to the Maximum Buyback Size.
The Company shall utilize at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback, i.e. ₹ 4,600
crore (Rupees Four Thousand Six Hundred crore only) i.e. Minimum Buyback Size. Based on the Minimum Buyback Size and
Maximum Buyback Price, the Company would purchase a minimum of 2,62,85,714 Equity Shares.
5. Method to be adopted for Buyback as referred to in Regulation 4(iv)(b) and Regulation 16 of the Buyback
Regulations
In terms of Regulation 40(1) of the LODR Regulations, as amended, except in case of transmission or transposition of
securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized
form with a depository. Accordingly, the Buyback is open to beneficial owners holding Equity Shares in dematerialized
form (“Demat Shares”). The promoters, promoter group, and the persons in control of the Company shall not participate
in the Buyback. Further, as required under the Buyback Regulations, the Company will not buy back Equity Shares
which are locked-in or non-transferable, until the pendency of such lock-in or until the time such Equity Shares become
transferable, as applicable.
The Buyback will be implemented by the Company by way of open market purchases through the Indian Stock Exchanges,
by the order matching mechanism except “all or none” order matching system, as provided under the Buyback Regulations.
In relation to the Buyback of Demat Shares, the execution of the order, issuance of contract note and delivery of the stock
to the member and receipt of payment would be carried out by the broker, appointed by the Company, in accordance with
the requirements of the Indian Stock Exchanges and SEBI.
6. Compliance with Regulation 4 of the Buyback Regulations
In terms of the provisions of the Buyback Regulations, the offer for Buyback under open market route cannot be made
for 15% or more of the total paid-up equity capital and free reserves of the Company, based on both standalone and
consolidated financial statements of the Company.
As per the latest audited Balance Sheet of the Company as at March 31, 2021, the total paid-up equity capital and free
reserves are as follows:
Particulars
Total paid-up equity capital
Free reserves
Aggregate of the total paid-up equity capital and free reserves
15% of the aggregate of the total paid-up equity capital and free reserves
Lower of 15% of the aggregate of the total paid-up equity capital and free
reserves of standalone and consolidated financial statements
Amount (` in crore)
Standalone
2,130
59,729
61,859
9,279
Amount (` in crore)
Consolidated
2,124
65,889
68,013
10,202
9,279
Based on the above, the Maximum Buyback Size, i.e. ₹ 9,200 crore, is less than 15% of the total paid-up capital and free
reserves of the Company, based on both standalone and consolidated financial statements of the Company.
10 | Notice of the 40th Annual General Meeting
Infosys Limited 7. The aggregate shareholding of the promoters, promoter group, the directors of the promoter where
promoter is a Company and of directors and key managerial personnel of the Company as on the date
of this Notice:
a. The aggregate shareholding of the promoters and promoter group as on the date of this Notice:
Name
Sl.
No.
A. Promoter
Number of Equity
Shares held
Shareholding
percentage (%)
Sudha Gopalakrishnan
Rohan Murty
S. Gopalakrishnan
Nandan M. Nilekani
Akshata Murty
Asha Dinesh
Sudha N. Murty
Rohini Nilekani
Dinesh Krishnaswamy
Shreyas Shibulal
N.R. Narayana Murthy
Nihar Nilekani
Janhavi Nilekani
Kumari Shibulal
Deeksha Dinesh
Divya Dinesh
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17 Meghana Gopalakrishnan
18
19
S.D. Shibulal
Shruti Shibulal
Total (A)
B. Promoter group
20 Milan Shibulal Manchanda
Gaurav Manchanda
21
Bhairavi Madhusudhan Shibulal
22
Tanush Nilekani Chandra
23
Total (B)
TOTAL (A+B)
9,53,57,000
6,08,12,892
4,18,53,808
4,07,83,162
3,89,57,096
3,85,79,304
3,45,50,626
3,43,35,092
3,24,79,590
2,38,74,350
1,66,45,638
1,26,77,752
1,18,87,562
81,38,175
76,46,684
76,46,684
48,34,928
29,25,523
27,37,538
51,67,23,404
1,39,35,868
1,37,36,226
65,09,240
7,77,600
3,49,58,934
55,16,82,338
2.24
1.43
0.98
0.96
0.91
0.91
0.81
0.81
0.76
0.56
0.39
0.30
0.28
0.19
0.18
0.18
0.11
0.07
0.06
12.13
0.33
0.32
0.15
0.02
0.82
12.95
b. The aggregate shareholding of the directors of the promoter, as on the date of this Notice, where the promoter is a
Company: The Company does not have any corporate promoter.
c. The aggregate shareholding of the directors and key managerial personnel of the Company as on the date of this Notice:
Name
Sl.
No.
Designation
Number of Equity
Shares held
Shareholding
percentage (%)
1
2
3
4
5
6
7
8
9
Nandan M. Nilekani
Salil Parekh
U.B. Pravin Rao
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Total (A)
A. Directors
Non-Executive Director and
Chairman of the Board
Chief Executive Officer and Managing Director
Chief Operating Officer and Whole-time Director
Lead Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
10
11
Nilanjan Roy
A.G.S. Manikantha
Chief Financial Officer
Company Secretary
B. Key managerial personnel
4,07,83,162
6,52,562
12,19,089
Nil
Nil
Nil
Nil
8,456
Nil
4,26,63,269
27,355
7,502
0.96
0.02
0.03
Nil
Nil
Nil
Nil
0.00
Nil
1.00
0.00
0.00
Notice of the 40th Annual General Meeting | 11
Infosys Limited Name
Designation
Sl.
No.
12
Inderpreet Sawhney
13 Mohit Joshi
14
15
Ravi Kumar S.
Krishnamurthy Shankar
Total (B)
Total (A+B)
Group General Counsel and
Chief Compliance Officer
President
President and Deputy Chief Operating Officer
Group Head – Human Resources and Infosys
Leadership Institute
Number of Equity
Shares held
Nil
Shareholding
percentage (%)
Nil
Nil
Nil
58,208
93,065
4,27,56,334
Nil
Nil
0.00
0.00
1.00
d. The aggregate American Depositary Receipts (“ADRs”) held by the directors and key managerial personnel of the
Company as on the date of this Notice:
Sl.
No.
1
2
3
Name
Designation
Inderpreet Sawhney
Mohit Joshi
Ravi Kumar S.
Total
Group General Counsel and Chief Compliance Officer
President
President and Deputy Chief Operating Officer
Number of
ADRs held
56,397*
6,370*
48,246
1,11,013
Shareholding
percentage (%)
0.00
0.00
0.00
0.00
Note: Each ADR represents one underlying equity share
* Includes dividend reinvestment shares and rounded down to the nearest whole number
e. The aggregate Restricted Stock Units (“RSUs”) and Employee Stock Options (“Options”) held by the directors and key
managerial personnel of the Company as on the date of this Notice:
Name
Sl.
No.
Designation
Type of stock incentive
Unvested
Vested but not
exercised
1
2
3
4
5
6
7
8
Salil Parekh
U.B. Pravin Rao
Total (A)
Chief Executive Officer and
Managing Director
Chief Operating Officer and
Whole-time Director
A. Directors
RSUs
RSUs
Options
B. Key managerial personnel
Chief Financial Officer
Nilanjan Roy
A.G.S. Manikantha Company Secretary
Inderpreet
Sawhney
Mohit Joshi
Group General Counsel and
Chief Compliance Officer
President
Ravi Kumar S.
Krishnamurthy
Shankar
Total (B)
Total (A+B)
President and Deputy Chief
Operating Officer
Group Head – Human Resources
and Infosys Leadership Institute
RSUs
RSUs
ADR RSUs
ADR Options
ADR RSUs
ADR Options
ADR RSUs
ADR Options
RSUs
Options
2,38,052
78,113
–
3,16,165
84,621
8,695
1,27,193
22,226
3,65,360
–
3,51,960
–
75,834
–
10,35,889
13,52,054
–
–
86,000
86,000
–
–
–
66,674
–
2,25,500
–
56,376
–
28,500
3,77,050
4,63,050
8. No Equity Shares of the Company have been purchased / sold by any promoter / promoter group, directors
and key managerial personnel of the Company during the period from the six months preceding the date
of the Board Meeting at which the Buyback was proposed and from the date of the Board Meeting till
the date of this Notice, except for the following transactions:
Name
Sl.
No.
Number of
Equity Shares
Nature of transaction
Date of transaction
Price per equity
share (₹)
1
2
3
4
S.D. Shibulal
Kumari Shibulal
Bhairavi Madhusudhan
Shibulal
Shreyas Shibulal
12 | Notice of the 40th Annual General Meeting
A. Promoter and Promoter group
4,01,000 Gift (received)
(4,01,000) Gift (given)
1,75,000 Gift (received)
November 12, 2020
November 12, 2020
December 8, 2020
(1,75,000) Gift (given)
December 8, 2020
NA
NA
NA
NA
Infosys Limited
Sl.
No.
5
6
7
8
Name
Number of
Equity Shares
Nature of transaction
Date of transaction
Tanush Chandra Nilekani
Janhavi Nilekani
Kumari Shibulal
S.D. Shibulal
7,77,600 Gift (received)
(7,77,600) Gift (given)
(7,58,755) Sale (Block deal)
7,58,755 Purchase (Block deal)
March 9, 2021
March 9, 2021
May 12, 2021
May 12, 2021
Price per equity
share (₹)
NA
NA
1,317.95
1,317.95
9
Salil Parekh
10
U.B. Pravin Rao
B. Directors
14,310 Exercise of RSUs
(6,014) Sale
32,765 Exercise of RSUs
(13,448) Sale
1,92,964 Exercise of RSUs
(84,377) Sale
(9,000) Sale
(56,000) Sale
1,48,434 Exercise of RSUs
17,063 Exercise of RSUs
(7,170) Sale
14,662 Exercise of RSUs
(6,027) Sale
13,626 Exercise of RSUs
(13,626) Sale
59,374 Exercise of RSUs
11
Nilanjan Roy
C. Key managerial personnel
5,624 Exercise of RSUs
12
A.G.S. Manikantha
13
Krishnamurthy Shankar
(5,624) Sale
5,000 Exercise of RSUs
13,632 Exercise of RSUs
500 Exercise of RSUs
1,000 Exercise of RSUs
1,000 Exercise of RSUs
(1,000) Sale
342 Exercise of RSUs
1,000 Exercise of RSUs
6,026 Exercise of RSUs
6,100 Exercise of RSUs
(2,561) Sale
6,400 Exercise of RSUs
(2,631) Sale
6,200 Exercise of RSUs
5,000 Exercise of RSUs
February 3, 2021
February 3, 2021
March 3, 2021
March 3, 2021
May 4, 2021
May 4, 2021
May 4, 2021
May 5, 2021
May 12, 2021
February 3, 2021
February 3, 2021
March 3, 2021
March 3, 2021
May 4, 2021
May 4, 2021
May 12, 2021
March 3, 2021
March 3, 2021
April 14, 2021
May 18, 2021
November 18, 2020
February 24, 2021
March 3, 2021
March 3, 2021
April 9, 2021
May 12, 2021
November 23, 2020
February 3, 2021
February 3, 2021
March 3, 2021
March 3, 2021
March 12, 2021
May 12, 2021
5.00
1,288.00
5.00
1,322.54
5.00
1,329.19
1,343.86
1,340.00
5.00
5.00
1,288.00
5.00
1,322.00
5.00
1,329.19
5.00
5.00
1,323.00
5.00
5.00
5.00
5.00
5.00
1,322.54
5.00
5.00
5.00
5.00
1,289.00
5.00
1,322.00
5.00
5.00
No ADRs of the Company have been purchased / sold by directors and key managerial personnel of the Company during
the six months preceding the date of the Board Meeting at which the Buyback was proposed and from the date of the
Board Meeting till the date of this Notice, except for the following transactions:
Sl.
No.
1
Name
Inderpreet Sawhney
2
Mohit Joshi
Nature of transaction
Date of transaction
No. of
ADRs
28,450 Exercise of ADR RSUs
(5,316) Sale
26,176 Exercise of ADR RSUs
(13,950) Sale
(85,000) Sale
33,413 Exercise of ADR RSUs
(33,413) Sale
82,399 Exercise of ADR RSUs
(82,399) Sale
March 10, 2021
March 10, 2021
November 9, 2020
November 9, 2020
January 22, 2021
February 4, 2021
February 4, 2021
March 10, 2021
March 10, 2021
Price per
ADR
₹ 5.00
$18.69
₹ 5.00
$15.12
$18.17
₹ 5.00
$17.50
₹ 5.00
$18.69
Notice of the 40th Annual General Meeting | 13
Infosys Limited Sl.
No.
3
Name
No. of
ADRs
Nature of transaction
Date of transaction
Ravi Kumar S.
35,375 Exercise of ADR RSUs
(15,353) Sale
(20,000) Sale
79,724 Exercise of ADR RSUs
(31,500) Sale
February 4, 2021
February 4, 2021
March 9, 2021
March 10, 2021
March 10, 2021
Price per
ADR
₹ 5.00
$17.50
$18.50
₹ 5.00
$18.69
Details of RSUs and Options exercised by directors and key managerial personnel of the Company during the six months
preceding the date of the Board Meeting at which the Buyback was proposed and from the date of Board Meeting till the
date of this Notice:
Sl.
No.
1
2
3
4
5
6
7
8
Name
Type
Number of
RSUs / Options
Date of exercise
Salil Parekh
Nilanjan Roy
U.B. Pravin Rao
A.G.S. Manikantha
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Krishnamurthy Shankar Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of RSUs
Exercise of ADR RSUs
Exercise of ADR RSUs
Exercise of ADR RSUs
Exercise of ADR RSUs
Exercise of ADR RSUs
Exercise of ADR RSUs
Inderpreet Sawhney
Mohit Joshi
Ravi Kumar S.
14,310 February 3, 2021
32,765 March 3, 2021
1,92,964 May 4, 2021
1,48,434 May 12, 2021
17,063 February 3, 2021
14,662 March 3, 2021
13,626 May 4, 2021
59,374 May 12, 2021
5,624 March 3, 2021
5,000 April 14, 2021
13,632 May 18, 2021
500 November 18, 2020
1,000 February 24, 2021
1,000 March 3, 2021
342 April 9, 2021
1,000 May 12, 2021
6,026 November 23, 2020
6,100 February 3, 2021
6,400 March 3, 2021
6,200 March 12, 2021
5,000 May 12, 2021
28,450 March 10, 2021
26,176 November 9, 2020
33,413 February 4, 2021
82,399 March 10, 2021
35,375 February 4, 2021
79,724 March 10, 2021
Exercise price per
ADR / equity share (₹)
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
9.
Intention of the promoters, promoter group and persons in control of the Company to tender their Equity
Shares in the Buyback
In terms of Regulation 16(ii) of the Buyback Regulations, the Buyback is not extended to the promoters, promoters group
and persons in control of the Company.
10. The Company confirms that there are no defaults subsisting in the repayment of deposits, interest
payment thereon, redemption of debentures or interest payment thereon or redemption of preference
shares or payment of dividend due to any member, or repayment of any term loans or interest payable
thereon to any financial institution or banking company.
11. The Board has confirmed that it has made a full enquiry into the affairs and prospects of the Company
and has formed the opinion that:
i.
Immediately following the date of the Board meeting held on April 14, 2021 and the date of passing of the
members’ resolution approving the Buyback, there will be no grounds on which the Company can be found
unable to pay its debts;
14 | Notice of the 40th Annual General Meeting
Infosys Limited ii. As regards the Company’s prospects for the year immediately following the date of the Board meeting held on
April 14, 2021 as well as the year immediately following the date of passing of the members’ resolution approving
the Buyback, and having regards to the Board’s intention with respect to the management of the Company’s business
during that year and to the amount and character of the financial resources, which will, in the Board’s view, be
available to the Company during that year, the Company will be able to meet its liabilities as and when they fall
due and will not be rendered insolvent within a period of one year from the date of the Board meeting approving
the Buyback held on April 14, 2021 as also from the date of the members’ resolution;
iii. In forming its opinion for the above purposes, the Board has taken into account the liabilities (including prospective
and contingent liabilities) as if the Company were being wound up under the provisions of the Act, and the Insolvency
and Bankruptcy Code, 2016.
12. Report addressed to the Board by the Company’s Auditors on the permissible capital payment and the
opinion formed by directors regarding insolvency:
The text of the Report dated April 14, 2021 received from Deloitte Haskins & Sells LLP, the Statutory Auditors of the Company,
addressed to the Board of Directors of the Company is reproduced below:
REF: IL/2021-22/01
AUDITOR’S REPORT
To,
The Board of Directors,
Infosys Limited
No. 44, Infosys Avenue,
Hosur Road, Electronics City,
Bengaluru,
Karnataka – 560100
Dear Sir/Madam,
Re: Statutory Auditor's Report in respect of proposed buyback of equity shares by Infosys Limited (the "Company") in
terms of Clause (xi) of Schedule I of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018,
as amended (“Buyback Regulations”)
1. This Report is issued in accordance with the terms of our engagement letter dated July 3, 2020.
2. The Board of Directors of the Company have approved a proposal for buyback of equity shares by the Company (subject
to the approval of its shareholders) at its Meeting held on April 14, 2021, in pursuance of the provisions of Sections 68,
69 and 70 of the Companies Act, 2013, as amended (the “Act”) and the Buyback Regulations.
3. We have been requested by the Management of the Company to provide a report on the accompanying “Statement of
Permissible Capital Payment as at March 31, 2021”(‘Annexure A’) (hereinafter referred to as the “Statement”). This Statement
has been prepared by the Management of the Company, which we have initialled for the purposes of identification only.
Management's Responsibility:
4. The preparation of the Statement to comply with the provisions of Section 68(2)(c) of the Act, the proviso to Regulation
4(iv) of the Buyback Regulations and the compliance with the Buyback Regulations, is the responsibility of the
management of the Company, including the computation of the amount of the permissible capital payment, the
preparation and maintenance of all accounting and other relevant supporting records and documents. This responsibility
includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation
of the Statement and applying an appropriate basis of preparation; and making estimates that are reasonable in the
circumstances.
Auditor's Responsibility:
5. Pursuant to the requirements of the Buyback Regulations, it is our responsibility to provide a reasonable assurance that:
i. We have inquired into the state of affairs of the Company in relation to the annual audited standalone and consolidated
financial statements as at and for the year ended March 31, 2021;
ii. The amount of permissible capital payment as stated in Annexure A, has been properly determined considering the
annual audited standalone and consolidated financial statements as at March 31, 2021 in accordance with Section
68(2)(c) of the Act and the proviso to Regulation 4(iv) of the Buyback Regulations; and
iii. The Board of Directors of the Company, in their Meeting held on April 14, 2021 have formed the opinion as specified
in Clause (x) of Schedule I to the Buyback Regulations, on reasonable grounds and that the Company will not, having
regard to its state of affairs, be rendered insolvent within a period of one year from the aforesaid date and from the
date on which the results of the shareholders’ resolution with regard to the proposed buyback are declared.
Notice of the 40th Annual General Meeting | 15
Infosys Limited 6. The annual standalone and consolidated financial statements referred to in paragraph 5 above, have been audited
by us, on which we have issued an unmodified audit opinion in our report dated April 14, 2021. We conducted our
audit of the annual standalone and consolidated financial statements in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute
of Chartered Accountants of India. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement.
7. We conducted our examination of the Statement in accordance with the Guidance Note on Audit Reports and Certificates
for Special Purposes (Revised 2016), issued by the Institute of Chartered Accountants of India (the “Guidance Note”)
and Standards on Auditing specified under Section 143(10) of the Companies Act, 2013, in so far as applicable for the
purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of
Ethics issued by the Institute of Chartered Accountants of India.
8. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related
Services Engagements.
Opinion
9. Based on inquiries conducted and our examination as above, we report that:
i. We have inquired into the state of affairs of the Company in relation to its annual audited standalone and consolidated
financial statements as at and for the year ended March 31, 2021, which have been approved by the Board of Directors
of the Company on April 14, 2021.
ii. The amount of permissible capital payment towards the proposed buy back of equity shares as computed in the
Statement attached herewith, as Annexure A, in our view has been properly determined in accordance with Section
68 (2)(c) of the Act and the proviso to Regulation 4(iv) of the Buyback Regulations. The amounts of share capital
and free reserves have been extracted from the audited standalone and consolidated financial statements of the
Company as at and for the year ended March 31, 2021.
iii. The Board of Directors of the Company, at their meeting held on April 14, 2021 have formed their opinion as specified
in clause (x) of Schedule I to the Buyback Regulations, on reasonable grounds and that the Company having regard
to its state of affairs, will not be rendered insolvent within a period of one year from the date of passing the Board
Resolution dated April 14, 2021 and from the date on which the results of the shareholders’ resolution with regard
to the proposed buyback are declared.
Restriction on Use
10. This report has been issued at the request of the Company solely for use of the Company (i) in connection with the
proposed buyback of equity shares of the Company as mentioned in paragraph 2 above, (ii) to enable the Board
of Directors of the Company to include in the explanatory statement to the notice for the special resolution public
announcement, and other documents pertaining to buyback to be sent to the shareholders of the Company or filed
with (a) the Registrar of Companies, Securities and Exchange Board of India, stock exchanges, and any other regulatory
authority as per applicable law and (b) the Central Depository Services (India) Limited, National Securities Depository
Limited and (iii) can be shared with the Merchant Bankers in connection with the proposed buyback of equity shares
of the Company for onward submission to relevant authorities in pursuance to the provisions of Sections 68 and other
applicable provisions of the Act and the Buyback Regulations, and may not be suitable for any other purpose. This report
should not be used for any other purpose without our prior written consent. Accordingly, we do not accept or assume
any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose
hands it may come without our prior consent in writing.
FOR DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Place: Mumbai
Date: April 14, 2021
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 21039826AAAACM6918
16 | Notice of the 40th Annual General Meeting
Infosys Limited Annexure A - Statement of Permissible Capital Payment
Computation of amount of permissible capital payment towards buyback of equity shares in accordance with Section 68(2)
(c) of the Companies Act, 2013 (“the Act”), based on the audited standalone and consolidated financial statements as at
and for the twelve months period ended March 31, 2021.
Particulars
Paid-up equity capital as at March 31, 2021 (A)
Free reserves as at March 31, 2021
Retained earnings(1)
Securities Premium reserve
General reserve
Total free reserves (B)
Total paid-up equity capital and free reserves (A+B)
Maximum amount permissible for buyback under Section 68 of the Act, i.e.
lower of 25% of the total paid-up capital and free reserves of standalone
and consolidated financial statements
Maximum amount permissible for buyback under the proviso to
Regulation 4(iv) of the Buyback Regulations, i.e. lower of 15% of the
total paid-up capital and free reserves of standalone and consolidated
financial statements
Amount (` in crore)
Standalone
2,130
Amount (` in crore)
Consolidated
2,124
57,485
581
1,663
59,729
61,859
62,574
600
2,715
65,889
68,013
15,465
9,279
(1)
Includes re-measurement loss on defined benefit plan of ` 33 crore and ` 69 crore on a standalone and consolidated basis, respectively.
For Infosys Limited
Nilanjan Roy
Chief Financial Officer
Date: April 14, 2021
13. Information about acceptance of Equity Shares in the Buyback to the shareholders of the Company
i. Pursuant to the circular no. 20210319-1 dated March 19, 2021 issued by BSE and circular ref. no. 10/2021 (download
ref. no. NSE/ISC/48147) dated April 30, 2021 issued by NSE, the Indian Stock Exchanges are required to identify the
counterparty to the trade executed by the Company under the Buyback using the unique client code provided to
the Company on a daily basis. Post such identification, the Indian Stock Exchanges shall send SMS and email to
such shareholders whose sell order gets matched with that of the Company on a daily basis informing them about
their sell orders matched against buyback orders of the Company on the exchange trading platform together with
the relevant details such as quantity and price of the Equity Shares that are bought back.
ii. Shareholders are requested to ensure (via their broker) that their correct and valid mobile numbers and email IDs
are updated in the unique client code database of the Indian Stock Exchanges.
iii. For more information on the process of identification and circulation of the relevant information to the shareholders
whose Equity Shares get accepted under the Buyback, please refer to BSE circular no. 20210319-1 dated March 19,
2021 and NSE circular ref. no. 10/2021 (download ref. no. NSE/ISC/48147) dated April 30, 2021.
iv. The Company will be discharging the tax on buyback of shares at the applicable rate in accordance with the
provisions of the IT Act read with the rules thereunder.
14. General obligations of the Company as per the provisions of the Buyback Regulations and the Act:
i. Subject to applicable law, in accordance with Regulation 24(i)(b) of the Buyback Regulations, the Company shall not
issue any shares or other specified securities, including by way of bonus issue till the expiry of the Buyback Period;
ii. The Company shall not make any further issue of the same kind of shares or other securities including allotment of new
shares under Section 62(1)(a) or other specified securities within a period of six months after the completion of the Buyback
except by way of bonus shares or equity shares issued in order to discharge subsisting obligations such as conversion
of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into Equity Shares;
iii. Subject to applicable law, in accordance with Regulation 24(i)(f ) of the Buyback Regulations, the Company shall
not raise further capital for a period of one year from the expiry of the Buyback Period, except in discharge of its
subsisting obligations;
iv. The special resolution approving the Buyback will be valid for a maximum period of one year from the date of
passing of the said special resolution (or such extended period as may be permitted under the Act or the Buyback
Regulations or by the appropriate authorities). The exact timetable for the Buyback shall be decided by the Board
(or its duly constituted committee) within the above time limits;
Notice of the 40th Annual General Meeting | 17
Infosys Limited v. The Equity Shares bought back by the Company will be compulsorily cancelled and will not be held for re-issuance;
vi. Subject to applicable law, the Company shall not withdraw the Buyback after the public announcement for the
Buyback is made; and
vii. The Company shall not buy back locked-in Equity Shares and non-transferable Equity Shares till the pendency of the
lock-in or until the Equity Shares become transferable.
All the material documents, such as the Memorandum and Articles of Association of the Company, relevant Board resolution
for the Buyback, the Auditor's Report dated April 14, 2021, and the audited accounts for the period from April 1, 2020 to
March 31, 2021, are available for electronic inspection without any fee by the members. The audited accounts for the period
from April 1, 2020 to March 31, 2021 are also available on the Company’s website at https://www.infosys.com/investors/.
As per the provisions of Section 68(2)(b) of the Act, since the Buyback is more than 10% of the total paid-up equity capital
and free reserves of the Company, it is necessary to obtain the consent of the members of the Company, to the Buyback,
by way of a special resolution. Accordingly, this proposal is placed for the approval of members. In compliance with the
General circular no. 20/2020 issued by the MCA, this item is considered unavoidable and forms part of this Notice.
No director, key managerial personnel, or their relatives is interested in or concerned with the resolution in Item no. 4,
except to the extent of their shareholding.
The Board recommends the resolution set forth in Item no. 4 for the approval of members.
Item no. 5 – Reappointment of Michael Gibbs as an independent director
Michael Gibbs was appointed as an independent director of the Company pursuant to Section 149 of the Companies
Act, 2013, read with Companies (Appointment and Qualification of Directors) Rules, 2014, by the members via postal
ballot, to hold office up to July 12, 2021. He is due for retirement from the first term as an independent director on July
12, 2021. The nomination and remuneration committee, at its meeting held on April 14, 2021, after taking into account
the performance evaluation of Michael Gibbs during his first term of three years and considering his knowledge, acumen,
expertise, experience and substantial contribution, has recommended to the Board his reappointment for a second term
of five years. Based on the recommendation of the nomination and remuneration committee, the Board has recommended
the reappointment of Michael Gibbs as an independent director, not liable to retire by rotation, for a second term of five
years with effect from July 13, 2021, up to July 12, 2026.
In accordance with the provisions of Section 149 of the Companies Act, 2013, an independent director shall hold office
for a term up to five consecutive years on the Board of a Company, but shall be eligible for reappointment on passing of
a special resolution by the Company.
Michael Gibbs fulfills the requirements of an independent director as laid down under Section 149(6) of the Companies
Act, 2013 and Regulation 16 of the LODR Regulations.
The Company has received all statutory disclosures / declarations from Michael Gibbs including, (i) consent in writing to
act as director in Form DIR-2, pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors) Rules, 2014
(“the Appointment Rules”), (ii) intimation in Form DIR-8 in terms of the Appointment Rules to the effect that he is not
disqualified under sub-section (2) of Section 164 of the Act, and (iii) a declaration to the effect that he meets the criteria of
independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013. The Company has also received a
notice under Section 160 of the Companies Act, 2013 from a member, intending to nominate Michael Gibbs to the office
of independent director.
In the opinion of the Board, and based on its evaluation, Michael Gibbs fulfils the conditions specified in the Companies Act,
2013, Rules made thereunder and LODR Regulations for his reappointment as an independent director of the Company and
he is independent of the Management of the Company. A copy of the draft letter for the reappointment of Michael Gibbs
setting out the terms and conditions is available for electronic inspection without any fee by the members.
The resolution seeks the approval of members for the reappointment of Michael Gibbs as an independent director of the
Company up to July 12, 2026 pursuant to Sections 149, 152 and other applicable provisions of the Act and the Rules made
thereunder (including any statutory modification(s) or re-enactment(s) thereof ) and his office shall not be liable to retire
by rotation. In compliance with the general circular no. 20/2020 issued by the MCA, this item is considered unavoidable
and forms part of this Notice.
No director, key managerial personnel or their relatives except Michael Gibbs, to whom the resolution relates, is interested
in or concerned with the resolution in Item no. 5.
The Board recommends the resolution set forth in Item no. 5 for the approval of members.
18 | Notice of the 40th Annual General Meeting
Infosys Limited Item no. 6 – Appointment of Bobby Parikh as an independent director
The Board, based on the recommendation of the nomination and remuneration committee, appointed Bobby Parikh as
an additional and independent director of the Company with effect from July 15, 2020, pursuant to Section 161 of the
Companies Act, 2013. The Company has received from him all statutory disclosures / declarations including, (i) consent in
writing to act as director in Form DIR-2, pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors)
Rules, 2014 (“the Appointment Rules”), (ii) intimation in Form DIR-8 in terms of the Appointment Rules to the effect that
he is not disqualified under sub-section (2) of Section 164 of the Act, and (iii) a declaration to the effect that he meets
the criteria of independence as provided in sub-section (6) of Section 149 of the Act. The Company has also received a
notice under Section 160 of the Companies Act, 2013 from a member, intending to nominate Bobby Parikh to the office
of independent director.
In the opinion of the Board, Bobby Parikh is a well-respected business leader who brings a wealth of experience and
financial acumen to the Infosys Board. His vast experience in the realm of corporate governance will greatly benefit the
Company. Further, he possesses integrity and relevant proficiency, which will bring tremendous value to the Board and to
the Company. He fulfils the conditions for independence specified in the Act, the Rules made thereunder and the LODR
Regulations and such other laws / regulations for the time being in force, to the extent applicable to the Company. A copy
of the draft letter for the appointment of Bobby Parikh as an independent director setting out the terms and conditions is
available for electronic inspection without any fee by the members.
The Board, on July 15, 2020, appointed Bobby Parikh as an additional and independent director who holds office up to the
ensuing AGM. The resolution seeks the approval of members for the appointment of Bobby Parikh as an independent director
of the Company up to July 14, 2023 pursuant to Sections 149, 152 and other applicable provisions of the Act and the Rules made
thereunder (including any statutory modification(s) or re-enactment(s) thereof) and his office shall not be liable to retire by rotation.
As per the provisions of Section 161 of the Act, an additional director appointed by the Board shall hold office up to the date
of the ensuing AGM and shall be appointed as a director by the members. Bobby Parikh’s appointment is hereby placed for
the approval of members. In compliance with the general circular no. 20/2020 issued by the MCA, this item is considered
unavoidable and forms part of this Notice.
No director, key managerial personnel, or their relatives except Bobby Parikh, to whom the resolution relates, is interested
in or concerned with the resolution in Item no. 6.
The Board recommends the resolution set forth in Item no. 6 for the approval of members.
Item no. 7 – Appointment of Chitra Nayak as an independent director
The Board, based on the recommendation of the nomination and remuneration committee, appointed Chitra Nayak as
an additional and independent director of the Company with effect from March 25, 2021, pursuant to Section 161 of the
Companies Act, 2013. The Company has received from her all statutory disclosures / declarations including, (i) consent in
writing to act as director in Form DIR-2, pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors)
Rules, 2014 (“the Appointment Rules”), (ii) intimation in Form DIR-8 in terms of the Appointment Rules to the effect that
she is not disqualified under sub-section (2) of Section 164 of the Act, and (iii) a declaration to the effect that she meets
the criteria of independence as provided in sub-section (6) of Section 149 of the Act. The Company has also received a
notice under Section 160 of the Companies Act, 2013 from a member, intending to nominate Chitra Nayak to the office of
independent director.
In the opinion of the Board, she brings Silicon Valley experience and expertise that will provide valuable insights as
Infosys pivots its service offerings in consulting and digital solutions to help businesses in their strategic intent of digital
transformation. She fulfills the conditions for independence specified in the Act, the Rules made thereunder and the LODR
Regulations and such other laws / regulations for the time being in force, to the extent applicable to the Company. A copy
of the draft letter for the appointment of Chitra Nayak as an independent director setting out the terms and conditions is
available for electronic inspection without any fee by the members.
The Board, on March 25, 2021, appointed Chitra Nayak as an additional and independent director who holds office up to
the ensuing AGM. The resolution seeks the approval of members for the appointment of Chitra Nayak as an independent
director of the Company up to March 24, 2024 pursuant to Sections 149, 152 and other applicable provisions of the Act
and the Rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof ) and her office shall
not be liable to retire by rotation.
As per the provisions of Section 161 of the Act, an additional director appointed by the Board shall hold office up to the date
of the ensuing AGM and shall be appointed as a director by the members. Chitra Nayak’s appointment is hereby placed for
the approval of members. In compliance with the general circular no. 20/2020 issued by the MCA, this item is considered
unavoidable and forms part of this Notice.
No director, key managerial personnel or their relatives except Chitra Nayak, to whom the resolution relates, is interested
in or concerned with the resolution in Item no. 7.
The Board recommends the resolution set forth in Item no. 7 for the approval of members.
Notice of the 40th Annual General Meeting | 19
Infosys Limited Item no. 8 – Approval for changing the terms of remuneration of U.B. Pravin Rao, Chief Operating
Officer and Whole-time Director
The shareholders had on June 22, 2019, pursuant to the resolution (Item no. 9) passed at the 38th AGM, revised the terms of
appointment of U.B. Pravin Rao, Chief Operating Officer and Whole-time Director as specified in the notice and explanatory
statement annexed thereto. The resolution can be accessed and referred at the following link- https://www.infosys.com/
investors/reports-filings/documents/agm-notice2019.pdf
Pravin joined Infosys in 1986. During his illustrious career at Infosys spanning 35 years, he has held a number of senior
leadership roles including Interim Chief Executive Officer and Managing Director, Head of Infrastructure Management
Services, Delivery Head for Europe, and Head of Retail, Consumer Packaged Goods, Logistics and Life Sciences. Pravin is
the Chief Operating Officer of Infosys and a Whole-time Director of the Board. He was inducted on January 10, 2014 as a
member of the Board. He is a member of the stakeholders relationship committee and the corporate social responsibility
committee of the Board. As the Chief Operating Officer, Pravin has overall strategic and operational responsibility for the
entire portfolio of the Company’s offerings. Pravin oversees the key functions of global delivery and business enablement.
Pravin was the chairperson of the National Association of Software and Service Companies (NASSCOM) in fiscal 2021 and
is currently a member of the Executive Council of NASSCOM. He was also part of the National Council of CII from 2014 to
2020 and is known for his strategic thinking and as an eminent industry leader.
In fiscal 2020, when the COVID-19 pandemic first broke, Infosys was swift to react under the leadership of Pravin, providing
the required support to the workforce, clients and the community. From setting up a core team to monitor the situation
closely and staying in constant touch with the local authorities, sharing timely updates with the global employee base
through local anchors, to enabling the near-seamless transition to the remote mode of work – he steered the Company
to scale up its efforts quickly and rise to the challenge. Central to these efforts was the need to ensure the physical safety
and mental wellbeing of our global workforce. Today, 96.5% of Infosys employees continue to work from home. With a
more virulent surge of the pandemic in India, Infosys has ramped up its efforts significantly. Infosys has set up exclusive
COVID care centers across seven DC locations including Bengaluru, Pune, NCR, Chennai, Hyderabad, and similar centers
are on the anvil in the coming weeks across all other Infosys locations. We have comprehended the importance of the role
that vaccines play in our fight to counter this pandemic. By working very closely with the government authorities and
medical experts, we have put together various frameworks for the immunization drive to encourage employees and their
family members to get vaccinated. The Company was able to achieve all these seamlessly thanks to Pravin's guidance and
leadership. Pravin will be superannuating on December 12, 2021 as per the Company’s retirement policy.
The nomination and remuneration committee, in view of his outstanding service in his exemplary career spanning 35 years
with the Company, has recommended to amend the terms of his appointment and remuneration to include the following:
(i) Payment of a special one-time bonus of ` 4 crore on his retirement in December 2021 after a career spanning over
35 years, in view of his outstanding contribution to the Company, especially during the pandemic. Under U.B. Pravin
Rao’s leadership, the Company immediately shifted to remote working and met customer expectations. He led the
comprehensive efforts of the Company to scale up IT infrastructure, enhance focus on employee safety, health and
well-being, and in successfully managing the operations during the pandemic. He drove actions that helped the
Company to become very resilient and responsive in face of this enormous crisis.
(ii) Accelerate vesting of 31,725 Restricted Stock Unites (RSUs) due for vesting during fiscal 2022, which is due for vesting
within 90 days after the retirement date [Total of 31,725 Restricted Stock Units (RSUs) due to vest in fiscal 2022 under the
2015 Incentive Compensation Plan, of which 17,062 RSUs are due to vest on February 1, 2022 and 14,663 RSUs are due to
vest on February 27, 2022. Total of 46,388 RSUs will be forfeited, of which 31,725 RSUs are due to vest in fiscal 2023 and
14,663 RSUs are due to vest in fiscal 2024].
Accordingly, the Board has taken note of Pravin's outstanding service and approved the inclusion of the above revision to
his terms of appointment and remuneration.
The said changes have been approved by the nomination and remuneration committee and the Board of Directors of the
Company in accordance with Sections 196, 197 and other applicable provisions of the Companies Act, 2013 and the Rules
made thereunder, read with Schedule V of the Act (including any statutory modification(s) or reenactments(s) thereof ).
The authority to vary the terms of appointment and remuneration is vested with the Board in accordance with previous
shareholder resolutions. Hence, approval of shareholders is not required for the resolution referred to in Item no. 8 above.
However, the shareholders’ approval is being sought as a measure of good corporate governance.
In compliance with the general circular no. 20/2020 issued by the MCA, this item is considered unavoidable and forms
part of this Notice. A copy of the revised letter for the terms of appointment and remuneration of U.B. Pravin Rao setting
out the terms and conditions is available for electronic inspection without any fee by the members.
No director, key managerial personnel, or their relatives except U.B. Pravin Rao, to whom the resolution relates, is interested
in or concerned with the resolution in Item no. 8.
The Board recommends the resolution set forth in Item no. 8 for the approval of shareholders.
20 | Notice of the 40th Annual General Meeting
Infosys Limited Additional information on directors recommended for appointment / reappointment as required
under Regulation 36 of the LODR Regulations and applicable Secretarial Standards
Michael Gibbs
Independent Director
Michael Gibbs is the former Group CIO for BP, PLC who held
the responsibility of setting up and implementing BP’s IT
strategy and providing computing and telecommunications
technology services worldwide.
As CIO, Michael led a transformation of the IT function
at BP, reorganizing the function and operating model.
He led improvements in cybersecurity and the application
of emerging digital technologies including plans for a
migration of legacy data centers to the cloud.
Michael served as CIO for various businesses including
Conoco Refining & Marketing, Europe and Asia, based in
London and ConocoPhillips Supply and Trading, Corporate
Functions and Global Downstream, based in Houston.
In 2008, Michael returned to London, joining BP as VP / CIO,
Refining & Marketing, before becoming Group CIO in 2013.
Currently, Michael does occasional business consulting
and speaking. He has chaired several church and missions
boards and currently serves as Vice-Chair of “A Child’s Hope
– Haiti” serving the orphans of Haiti.
Michael graduated summa cum laude from Oklahoma
State University with a degree in Management Science.
He completed the Executive Management Program at
Penn State University in 1997 and the Concours / Cash CIO
Leadership Program in 2004. In 2015, he was named to CIO
magazine’s list of the most influential Global CIOs and ranked
as I-CIO’s second most powerful IT executive in Europe.
Age: 63 years
Nature of expertise in specific functional areas: Information
Technology Services and Business Management
Disclosure of inter-se relationships between directors and
key managerial personnel: Nil
Listed entities (other than the Infosys Group) in which Michael
Gibbs holds directorship and committee membership: Nil
Shareholding in the Company as on May 18, 2021: Nil
Remuneration proposed to be paid: Shareholders at the
34th AGM held on June 22, 2015 approved a sum not
exceeding 1% of the net profit of the Company per annum,
calculated in accordance with the provisions of Section 198
of the Companies Act, 2013, to be paid and distributed
among some or all of the non-executive directors of the
Company in a manner decided by the Board. Independent
Directors are paid remuneration as per the criteria set
by the Board from time to time in accordance with the
shareholders’ approval at 34th AGM.
Key terms and conditions of reappointment: As per
the resolution at Item no. 5 of this Notice, read with the
explanatory statement thereto.
Date of first appointment to the Board, last drawn
remuneration and number of Board meetings attended:
Michael Gibbs was first appointed to the Board on July
13, 2018. The details of remuneration drawn and number
of meetings attended are provided in the Corporate
governance report section of the Annual Report 2020-21.
Notice of the 40th Annual General Meeting | 21
Infosys Limited U.B. Pravin Rao
Chief Operating Officer and
Whole-time Director
U.B. Pravin Rao is the Chief Operating Officer of Infosys
and a Whole-time Director of the Board. He was inducted
on January 10, 2014 as a member of the Board. He is a
member of the stakeholders relationship committee and
the corporate social responsibility committee of the Board.
As the Chief Operating Officer, Pravin has overall strategic
and operational responsibility for the entire portfolio of the
Company’s offerings. Pravin oversees the key functions of
global delivery and business enablement. He has over 35
years of industry experience. Since joining Infosys in 1986,
he has held a number of senior leadership roles including
Interim Chief Executive Officer and Managing Director,
Head of Infrastructure Management Services, Delivery
Head for Europe, and Head of Retail, Consumer Packaged
Goods, Logistics and Life Sciences. Pravin holds a degree
in Electrical Engineering from Bangalore University, India.
He is a member of the Executive Council of the National
Association of Software and Service Companies (NASSCOM).
Age: 59 years
Nature of expertise in specific functional areas: Information
Technology Services and Business Management
Disclosure of inter-se relationships between directors and
key managerial personnel: None
Infosys Group)
(other than the
Listed entities
in which U.B. Pravin Rao holds directorship and
committee membership: Nil
Shareholding in the Company as on May 18, 2021:
12,19,089 equity shares
Remuneration proposed to be paid: As per the
resolution at Item no. 8 of this Notice read with
explanatory statement thereto.
Key terms and conditions of reappointment: U.B. Pravin
Rao was first appointed to the Board on January 10, 2014
as Whole-time Director and reappointed as a Whole-time
director effective August 18, 2017. The members have
approved his appointment and remuneration at the 33rd
AGM held on June 14, 2014. The terms of remuneration
were further amended at the 38th AGM held on June
22, 2019. The details are available at https://www.
infosys.com/investors/reports-filings/annual-report/
annual/documents/infosys-ar-14.pdf and https://www.
infosys.com/investors/reports-filings/documents/agm-
notice2019.pdf. As per the resolution of the members
with respect to his appointment, his office as director
shall be subject to retirement by rotation. Please refer
to the resolution at Item no. 8 of this Notice along with
explanatory statement for the current proposal on change
in terms of remuneration of U.B. Pravin Rao.
Date of first appointment to the Board, last drawn
remuneration and number of Board meetings attended:
U.B. Pravin Rao was first appointed to the Board on
January 10, 2014 as Whole-time Director. The details of
remuneration drawn and number of meetings attended
are provided in the Corporate Governance report section of
the Annual Report 2020-21.
22 | Notice of the 40th Annual General Meeting
Infosys Limited Bobby Parikh
Independent Director
Bobby Parikh is the Managing Partner of Bobby Parikh
Associates, a boutique firm focused on providing strategic
tax and regulatory advisory services.
Over the years, Bobby has had extensive experience in
advising clients across a range of industries. India has
witnessed significant deregulation and a progressive
transformation of its policy framework. An area of focus
for Bobby has been to work with businesses, both Indian
and multinational, in interpreting the implications
of the deregulation as well as the changes to India’s
policy framework, to help businesses better leverage
opportunities that have become available and to address
challenges that resulted from such changes. Bobby
has led teams that have advised clients in the areas of
entry strategy (MNCs into India and Indian companies
into overseas markets), business model identification,
structuring a business presence, mergers, acquisitions and
other business reorganizations. Bobby’s particular area of
focus is providing tax and regulatory advice in relation to
transactions and other forms of business reorganizations,
whether inbound, outbound or wholly domestic. In this
regard, Bobby works extensively with private equity funds,
other institutional investors and owners and managers of
businesses to develop bespoke solutions that optimally
address the commercial objectives underpinning a
particular transaction or a business reorganization. Bobby
also works closely with regulators and policy formulators
in providing inputs to aid in the development of new
regulations and policies, and in assessing the implications
and efficacy of these and providing feedback for action.
Bobby co-founded BMR Advisors, a highly regarded tax
and transactions firm, which he also helped run for over 12
years. Prior to forming BMR Advisors, Bobby was the Chief
Executive Officer of Ernst & Young in India and held that
responsibility until December 2003. Bobby worked with
Arthur Andersen for over 17 years and was its Country
Managing Partner until the Andersen practice combined
with that of Ernst & Young in June 2002. Bobby led the
Financial Services industry practice at Arthur Andersen and
then also at Ernst & Young.
Bobby is a graduate in Commerce from the University of
Mumbai and qualified as a Chartered Accountant from the
Institute of Chartered Accountants of India in 1987.
Age: 57 years
Nature of expertise in specific functional areas: Tax
and regulatory advisory, mergers and acquisitions,
financial services
Disclosure of inter-se relationships between directors and
key managerial personnel: Nil
Listed entities (other than the Infosys Group) in which Bobby
Parikh holds directorship and committee membership:
Committee
chairmanships
Audit Committee
Risk Management
Committee
Audit Committee
Directorships
Biocon Limited
Indostar Capital
Finance Limited
Committee
memberships
Stakeholders’
Relationship
Committee
Stakeholders’
Relationship
Committee
Nomination &
Remuneration
Committee
Corporate Social
Responsibility
Committee
Shareholding in the Company as on May 18, 2021: 8,456
Remuneration proposed to be paid: Shareholders at the
34th AGM held on June 22, 2015 approved a sum not
exceeding 1% of the net profit of the Company per annum,
calculated in accordance with the provisions of Section 198
of the Companies Act, 2013, to be paid and distributed
among some or all of the non-executive directors of the
Company in a manner decided by the Board. Independent
Directors are paid remuneration as per the criteria set
by the Board from time to time in accordance with the
shareholders’ approval at 34th AGM.
Key terms and conditions of appointment: As per the
resolution in Item no. 6 of this Notice, read with the
explanatory statement thereto.
Date of first appointment to the Board, last drawn
remuneration and number of Board meetings attended:
Bobby Parikh was appointed to the Board as an additional
and independent director on July 15, 2020, subject to
members’ approval. The details of remuneration drawn and
number of meetings attended are provided in the Corporate
governance report section of the Annual Report 2020-21.
Notice of the 40th Annual General Meeting | 23
Infosys Limited Chitra Nayak
Independent Director
Chitra Nayak has over 25 years of professional experience
in go-to-market, general management, and operations
leadership roles at various organizations. She currently
serves as a member of the board at Invitae, a medical
genetics company; at LifeWorks Inc. (formerly known
as Morneau Shepell Inc), a tech-enabled HR services
company; at Forward Air, a freight and logistics company;
and at Intercom, a messaging platform company. She also
advises startups on go-to-market strategies. Most recently,
she was the Chief Operating Officer (COO), overseeing
the go-to-market strategy at Comfy, a real-estate tech
startup, and prior to that, she was COO at Funding Circle,
an online SMB lending marketplace. Chitra has been in
leadership roles at Salesforce for eight years, as COO,
Platform, and Senior VP, Global Sales Development. She
was earlier part of AAA, Charles Schwab, and the Boston
Consulting Group as well.
Chitra has a passion for empowering women in the
workplace. She is the co-founder of Neythri.org, which
supports South Asian professional women. She was also the
co-founder of the Salesforce Women’s Network initiative.
She has co-created and taught an MBA class on ‘Women
in Leadership’ at the California State University, East Bay.
Chitra holds an MBA with Honors from Harvard Business
School, an MS in Environmental Engineering from Cornell
University, and a B.Tech. in Engineering from the Indian
Institute of Technology.
Age: 58 years
Nature of expertise in specific functional areas: Go-to-market,
general management and operations leadership.
Disclosure of inter-se relationships between directors and
key managerial personnel: Nil
Listed entities (other than the Infosys Group) in which Chitra
Nayak holds directorship and committee membership:
Board membership in listed entities
Indian
Nil
Overseas
1. Invitae Corporation (NYSE)
2. LifeWorks Inc. (TSE)
3. Forward Air Corporation (NASDAQ)
Shareholding in the Company as on May 18, 2021: Nil
Remuneration proposed to be paid: Shareholders at the
34th AGM held on June 22, 2015 approved a sum not
exceeding 1% of the net profit of the Company per annum,
calculated in accordance with the provisions of Section 198
of the Companies Act, 2013, to be paid and distributed
among some or all of the non-executive directors of the
Company in a manner decided by the Board. Independent
Directors are paid remuneration as per the criteria set
by the Board from time to time in accordance with the
shareholders’ approval at 34th AGM.
Key terms and conditions of appointment: As per the
resolution in Item no. 7 of this Notice, read with the
explanatory statement thereto.
Date of first appointment to the Board, last drawn
remuneration and number of Board meetings attended:
Chitra Nayak was appointed as an additional and
independent director on the Board on March 25, 2021,
subject to members’ approval. Details of remuneration
drawn are provided in the Corporate Governance report
section of the Annual Report 2020-21. Number of meetings
attended is not applicable.
24 | Notice of the 40th Annual General Meeting
Infosys Limited Instructions for participation through VC
Please follow the below steps for registration and participation
Step 1: Access the VC portal by clicking this link
https://agm.onwingspan.com/InfosysAGM
Or
You could also join the AGM by visiting the investor page on
our Company’s website, www.infosys.com
Step 2:
Log in to join the VC session by using your DP ID and Client ID /
Folio Number together with your PAN
a) Members with NSDL account: 8-character DP ID followed by
8-digit Client ID
(For example, if your DP ID is IN300*** and Client ID is
12******, then your user ID is IN300***12******).
b) Members with CDSL account: 16-digit Beneficiary ID (For
example, if your Beneficiary ID is 12**************, then
your user ID is 12**************).
c) Members with physical folio: ITL + Folio Number registered
with the Company
(For example, if your Folio Number is 0*****, then your user
ID is ITL0*****)
System requirements for best VC
experience
Internet connection: Broadband, wired or
wireless (3G or 4G/LTE), with a speed of 5
Mbps or more
Microphone and speakers: Built-in or USB
plug-in or wireless Bluetooth
Browser
Google Chrome: Version 72 or latest
Mozilla Firefox: Version 72 or latest
Microsoft Edge Chromium: Version 72 or
latest
Safari: Version 11 or latest
Internet Explorer: Not Supported
Helpline numbers
+91-80- 4156 5555
+91-80- 4156 5777
Note: Institutional / corporate shareholders are required to upload the Board Resolution / Authorization Letter authorizing its
representatives to attend the AGM through VC.
Step 3: Click ‘Enter’ to join the virtual AGM
Step 4: Members can post questions either through chat or the video feature available in the VC. Members can
exercise these options once the floor is open for shareholder queries.
Step 5: Members who have not cast their vote on the resolutions through remote e-voting and are otherwise not
barred from doing so, shall be eligible to vote through the e-voting system during the AGM by following the
“Instructions for e-voting”
General guidelines for VC participation
i. Members may note that the 40th AGM of the Company will be convened through VC in compliance with the applicable
provisions of the Companies Act, 2013, read with the circulars. The facility to attend the meeting through VC will be
provided by the Company. Members may access the same at https://agm.onwingspan.com/InfosysAGM
ii. The facility of joining the AGM through VC / OAVM will be opened 60 minutes before the scheduled start-time of the
AGM and will be available for members on a first-come-first-served-basis.
iii. The Company reserves the right to limit the number of members asking questions depending on the
availability of time at the AGM.
iv. Members can participate in the AGM through their desktops / smartphones / laptops etc. However, for better
experience and smooth participation, it is advisable to join the meeting through desktops / laptops with high-speed
internet connectivity.
v. Please note that participants connecting from mobile devices or tablets, or through laptops via mobile hotspot may
experience audio / video loss due to fluctuation in their respective networks. It is therefore recommended to use a
stable Wi-Fi or LAN connection to mitigate any of the aforementioned glitches.
Notice of the 40th Annual General Meeting | 25
Infosys Limited
Instructions for e-voting
The details of the process and manner for remote e-voting and voting during the AGM are explained below:
Step 1: Access to the NSDL e-voting system
Step 2: Cast your vote electronically on NSDL e-voting system.
Step 1: Access to the NSDL e-voting system
A) Login method for e-voting and voting during the meeting for Individual shareholders holding
securities in demat mode
In terms of the SEBI circular dated December 9, 2020 on the e-voting facility provided by listed companies and as part
of increasing the efficiency of the voting process, e-voting process has been enabled to all individual shareholders
holding securities in demat mode to vote through their demat account maintained with depositories / websites of
depositories / depository participants. Shareholders are advised to update their mobile number and email ID in their
demat accounts in order to access e-voting facility.
Login method for Individual shareholders holding securities in demat mode is given below:
Type of shareholders
Login method
Individual shareholders
holding securities in
demat mode with NSDL
I. NSDL IDeAS Facility
If you are already registered for the NSDL IDeAS facility,
1. Please visit the e-Services website of NSDL. Open web browser by typing the following
URL: https://eservices.nsdl.com/ either on a personal computer or mobile phone.
2. Once the homepage of e-Services is launched, click on the “Beneficial Owner” icon
under “Login”, available under the “IDeAS” section.
3. A new screen will open. You will have to enter your user ID and password.
After successful authentication, you will be able to see e-voting services.
4. Click on “Access to e-voting” under e-voting services and you will be able to
see the e-voting page.
5. Click on options available against company name or e-voting service provider – NSDL
and you will be re-directed to the NSDL e-voting website for casting your vote during
the remote e-voting period or voting during the meeting.
If the user is not registered for IDeAS e-Services,
1. The option to register is available at https://eservices.nsdl.com.
2. Select “Register Online for IDeAS” or click on
https://eservices.nsdl.comSecureWeb/IdeasDirectReg.jsp
3. Upon successful registration, please follow steps given in points 1 - 5 above.
II. E-voting website of NSDL
1. Visit the e-voting website of NSDL. Open web browser by typing the following
URL: https://www.evoting.nsdl.com/ either on a personal computer or mobile phone.
2. Once the homepage of e-voting system is launched, click on the “Login” icon, available
under the “Shareholder / Member” section.
3. A new screen will open. You will have to enter your User ID (i.e. your 16-digit
demat account number held with NSDL), Password / OTP and a verification code as
shown on the screen.
4. After successful authentication, you will be redirected to the NSDL Depository site
wherein you can see the e-voting page. Click on options available against company
name or e-voting service provider – NSDL and you will be redirected to the e-voting
website of NSDL for casting your vote during the remote e-voting period or
voting during the meeting.
26 | Notice of the 40th Annual General Meeting
Infosys Limited Individual shareholders
holding securities in
demat mode with CDSL
Individual shareholders
(holding securities in
demat mode) logging in
through their depository
participants
1. Existing users who have opted for Easi / Easiest can log in through their user ID and
password. The option to reach the e-voting page will be made available without any
further authentication. The URL for users to log in to Easi / Easiest are https://web.cdslindia.
com/myeasi/home/login or www.cdslindia.com and click on “New System Myeasi”.
2. After successful login on Easi / Easiest, the user will be also able to see the e-voting Menu.
The menu will have links of e-voting service provider ("ESP") i.e. NSDL portal. Click on
NSDL to cast your vote.
If the user is not registered for Easi / Easiest, the option to register is available at
https://web.cdslindia.com/myeasi/Registration/EasiRegistration
3.
4. Alternatively, the user can directly access the e-voting page by providing demat
account number and PAN from a link in www.cdslindia.com home page. The system
will authenticate the user by sending OTP on registered mobile number and email as
recorded in the demat account. After successful authentication, the user will be provided
links for the respective ESP i.e. NSDL, where the e-voting is in progress.
1. You can also log in using the login credentials of your demat account through your
depository participant registered with NSDL / CDSL for the e-voting facility.
2. Once logged in, you will be able to see the e-voting option. Once you click on the
e-voting option, you will be redirected to the NSDL / CDSL depository site after successful
authentication, wherein you can see e-voting feature.
3. Click on the options available against company name or e-voting service provider-NSDL
and you will be redirected to the e-voting website of NSDL for casting your vote during
the remote e-voting period or voting during the meeting.
Important note: Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” and “Forgot
Password” option available on the above-mentioned website.
Helpdesk for individual shareholders holding securities in demat mode for any technical issues related to login through
depository i.e. NSDL and CDSL
Login type
Helpdesk details
Individual shareholders holding
securities in demat mode with
NSDL
Members facing any technical issue in login can contact NSDL helpdesk by sending
a request at evoting@nsdl.co.in or call on the toll free no.: 1800 1020 990 or
1800 22 44 30
Individual shareholders holding
securities in demat mode with
CDSL
Members facing any technical issue in login can contact CDSL helpdesk by sending
a request at helpdesk.evoting@cdslindia.com or contact on 022- 23058738 or
022-23058542-43
B) Login method for e-voting and voting during the meeting for shareholders other than Individual shareholders
holding securities in demat mode and shareholders holding securities in physical mode.
1. Visit the e-voting website of NSDL. Open the web browser by typing the following URL: https://www.evoting.nsdl.com/
either on a personal computer or on a mobile phone.
2. Once the homepage of e-voting system is launched, click on the icon “Login”, available under ‘Shareholder/Member’.
3. A new screen will open. You will have to enter your User ID, Password / OTP and a verification code as shown on the screen.
4. Alternatively, if you are registered for NSDL e-services i.e. IDeAS, you can log in at https://eservices.nsdl.com/ with your
existing IDeAS login. Once you log in to NSDL e-services using your login credentials, click on e-voting and you can
proceed to Step 2 i.e. Cast your vote electronically on NSDL e-voting system.
5. Your User ID details are given below:
Manner of holding shares i.e. Demat (NSDL or
CDSL) or Physical
Your User ID is:
a) For members who hold shares in demat account
with NSDL
b) For members who hold shares in demat account
with CDSL
8-character DP ID followed by 8-digit Client ID
For example, if your DP ID is IN300*** and Client ID is 12******
then your User ID is IN300***12******.
16-digit Beneficiary ID
For example, if your Beneficiary ID is 12************** then
your User ID is 12**************
Notice of the 40th Annual General Meeting | 27
Infosys Limited c) For members holding shares in physical form
EVEN Number followed by Folio Number registered with the
Company
For example, if your Folio Number is 001*** and EVEN is
116022, then your User ID is 116022001***
6. Password details for shareholders other than individual shareholders are given below:
a) If you are already registered for e-voting, then you can use your existing password to log in and cast your vote.
b) If you are using NSDL e-voting system for the first time, you will need to retrieve the ‘initial password’ which was
communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ for the system
to prompt you to change your password.
c) How to retrieve your ‘initial password’?
If your email ID is registered in your demat account or with the Company, your ‘initial password’ is communicated to you
on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment
i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8-digit Client ID for your NSDL account, or the
last 8 digits of your Client ID for CDSL account, or Folio Number for shares held in physical form. The .pdf file contains
your ‘User ID’ and your ‘initial password’.
7.
If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:
a) Click on “Forgot User Details / Password?” (If you hold shares in your demat account with NSDL or CDSL) option
available on www.evoting.nsdl.com.
b) Physical User Reset Password? (If you hold shares in physical mode) option available on www.evoting.nsdl.com.
c) If you are still unable to get the password by the above two options, you can send a request to evoting@nsdl.co.in
mentioning your demat account number / Folio Number, your PAN, your name and your registered address.
d) Members can also use the OTP (One Time Password)-based login for casting their vote on the e-voting system of NSDL.
8. After entering your password, tick on “Agree with Terms and Conditions” by selecting on the check box.
9. Now, you will have to click on the “Login” button.
10. After you click on the “Login” button, the homepage of e-voting will open.
Step 2: Cast your vote electronically on NSDL e-voting system
1. After successfully logging in following Step 1, you will be able to see the EVEN of all companies in which you hold shares
and whose voting cycle is in active status.
2. Select the EVEN of Infosys Limited, which is 116022.
3. Now you are ready for e-voting as the voting page opens.
4. Cast your vote by selecting the appropriate options i.e. assent or dissent, verify / modify the number of shares for which
you wish to cast your vote and click on the “Submit” and “Confirm” buttons when prompted.
5. Upon confirmation, the message, “Vote cast successfully”, will be displayed.
6. You can also take a printout of the votes cast by you by clicking on the “Print” option on the confirmation page.
7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
Process for procuring user ID and password for e-voting for those shareholders whose email IDs are not registered
with the depositories / Company
Shareholders may sent a request to evoting@nsdl.co.in for procuring user ID and password for e-Voting.
1.
In case shares are held in physical mode, please provide Folio Number, name of member, scanned copy of the share
certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAAR (self-attested scanned copy of
Aadhaar Card)
In case shares are held in demat mode, please provide DP ID and Client ID (16-digit DP ID + Client ID or 16-digit
beneficiary ID), name of member, client master or copy of consolidated account statement, PAN (self-attested scanned
copy of PAN card), AADHAAR (self-attested scanned copy of Aadhaar Card).
If you are an Individual shareholder holding securities in demat mode, you are requested to refer to the login method
explained at Step 1 (A) i.e. Login method for e-Voting and voting during the meeting for Individual shareholders holding
securities in demat mode.
2.
3.
28 | Notice of the 40th Annual General Meeting
Infosys Limited General guidelines for e-voting
1.
2.
3.
Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send a scanned copy (PDF / JPG format) of
the relevant Board resolution / authorization letter etc. with attested specimen signature of the duly authorized signatory(ies)
who are authorized to vote, to the Scrutinizer by e-mail to evoting@infosys.com with a copy marked to evoting@nsdl.co.in.
It is strongly recommended that you do not share your password with any other person and take utmost care to keep
your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in
the correct password. In such an event, you will need to go through the “Forgot User Details / Password?” or “Physical
User Reset Password?” option available on www.evoting.nsdl.com to reset the password.
In case of any queries, you may refer to the Frequently Asked Questions (FAQs) for shareholders and e-voting user
manual for shareholders available in the download section of www.evoting.nsdl.com or call on the toll-free number:
1800 1020 990 /1800 224 430, or send a request to evoting@nsdl.co.in, or contact Mr. Amit Vishal, Senior Manager, or
Ms. Pallavi Mhatre, Manager, National Securities Depository Ltd., at the designated email IDs: evoting@nsdl.co.in or
AmitV@nsdl.co.in or pallavid@nsdl.co.in to get your grievances on e-voting addressed.
Information at a glance
Particulars
Time and date of AGM
Mode
Participation through video-conferencing
Helpline number for VC participation
Webcast and transcripts
Final dividend record date
Final dividend payment date
Information of tax on final dividend 2020-21
Cut-off date for e-voting
E-voting start time and date
E-voting end time and date
E-voting website of NSDL
Name, address and contact details of e-voting
service provider
Name, address and contact details of Registrar and
Transfer Agent
Details
4:00 p.m. IST, Saturday, June 19, 2021
Video conference and other audio-visual means
https://agm.onwingspan.com/InfosysAGM
+91-80-4156 5555 / +91-80-4156 5777
https://www.infosys.com/Investors/
Tuesday, June 1, 2021
Friday, June 25, 2021
https://www.infosys.com/investors/shareholder-services/
dividend-tax.html
Saturday, June 12, 2021
9:00 a.m. IST, Monday, June 14, 2021
5:00 p.m. IST, Friday, June 18, 2021
https://www.evoting.nsdl.com/
Contact name:
Amit Vishal
Senior Manager
Pallavi Mhatre
Manager
National Securities Depository Limited,
4th Floor, A Wing, Trade World, Kamala Mills Compound, Senapati
Bapat Marg, Lower Parel, Mumbai 400013, India
Contact details:
Email ID:
AmitV@nsdl.co.in;
pallavid@nsdl.co.in;
evoting@nsdl.co.in;
Contact number:
1800 1020 990 / 1800 224 430
Contact name:
Shobha Anand
Deputy General Manager
KFin Technlogies Private Limited,
Tower B, Plot 31-32, Financial District, Nanakramguda,
Serilingampally, Mandal, Hyderabad 500 032.
Contact details:
Email ID:
shobha.anand@kfintech.com;
einward.ris@kfintech.com;
Contact number: 1800-309-4001
Notice of the 40th Annual General Meeting | 29
Infosys Limited www.infosys.com