Plain-text annual report
Integrated Annual Report 2021-22
One Infosys: The journey to realizing our collective potential
It is often said that if you are
overwhelmed by the size of a problem,
break it down into smaller pieces.
Especially those that we think of
as daunting, overwhelming, and
incredibly hard – they can all be
accomplished by taking on small parts
at a time. Or can they?
In business, these parts are mostly linked together and
conventional wisdom leads one to think that improving
the parts, one at a time, will improve the whole. The truth,
however, is that a business is rarely, if ever, transformed
in this way because this approach misses the vital
intersections between the parts, where value can leak and
be lost. As navigators of our clients’ transformation, we
understand the power of a unified, all-encompassing and
concerted effort. It’s all about the enterprise acting as one
in service of a common goal. So, when it came to our own
transformation, we knew we had to start at the foundation
that holds together all our business units and functions,
target the top and bottom layers of our workforce along
with everyone in between, and let our shared purpose
lead the way. We call this approach to our reinvention
– One Infosys.
Like our clients, across industries, we too are racing
to increase the digitalization of our ways of working.
In addition to strengthening our capabilities in automation,
data analytics, AI, digital experience and cybersecurity,
we are amplifying the outcomes of these improvements
with the cloud. Infosys Cobalt™ – our powerful set of
services, solutions, and platforms for enterprises – is
already accelerating cloud-powered transformation for
our clients. Boosting of our own digital muscle with the
cloud is additionally helping us embrace agile ways of
working, drive faster application development, and assure
better digital security across projects. As a result, we are
able to bring new capabilities, with greater relevance to
our clients’ agendas in days rather than months, while
sharing the benefits of better cost-managed solutions and
faster modernization.
Beyond the technology, we know it is our people who
translate and integrate new digital methods and processes
into existing ways of working, orchestrating success for our
clients. Our transformation required that every employee
had the digital skills to execute the envisioned change and
every leader knew how to help their teams think and act in
sync in their day-to-day work. We redoubled our reskilling
and upskilling efforts company-wide so that every
employee was enabled and incentivized to deliver better
outcomes and every manager could make a compelling
case for change while acting as a role model to inspire
others to move forward.
Without losing focus on bottom-line results, our
One Infosys approach to transformation also seeks to
address issues of broader relevance such as climate
change and the employment implications of advances
in automation and artificial intelligence. We know that
the potential of our digital prowess to make a difference
and our role as a responsible corporation stretches far
beyond the well-being of our employees and customers.
Many businesses look to us for guidance, and the
industry looks to us for inspiration. Every Infoscion, we
know, is driven by the idea of leaving the world a better
place than it was when they started to be part of the
Infosys ecosystem.
We hope to share glimpses, in this Integrated Annual
Report, of how the One Infosys approach is accelerating
all-round progress for all our stakeholders.
1
Infosys Integrated Annual Report 2021-221 One digital foundation – unified by cloud
Amplifying data and AI with cloud
Organizations apply data-driven and agile-driven
approaches – from predictive systems to AI-driven
automation – but mostly sporadically. This leaves so much
value lying on the table. When it comes to data guiding
processes, only a fraction is often processed due to the limits of
legacy technology, challenges of adding more modern digital
capabilities, and high computational demands of intensive,
real-time processing jobs.
The cloud saves the day for several businesses.
More companies, including our own teams, are now seeing
the benefits of cloud when it comes to catalyzing digital
transformation – because of its ability to increase development
and processing speed while providing near-limitless scale. In fact,
several of our clients are using our cloud data-warehousing
services to gather insights from multiple projects in parallel to
design their transformed processes and production.
Finnish Postal Service, the Posti Group, is one of the oldest
companies in Finland and presents an inspiring instance.
In collaboration with Infosys, Posti replaced their legacy
systems and processes, while incorporating AI and machine
learning – moving to the cloud to amplify their full-scale digital
transformation. One outcome was retaining happier employees
through gamification. Delivering mail, particularly in the cold,
harsh Finnish winter, is hard work. Posti has had a challenge in
retaining delivery workers, and with churn comes the perpetual
task of training new employees.
Posti leveraged Infosys Living Labs, the innovation-as-a-service
offering from Infosys to address this challenge. Upon discovering
that Infosys has developed the Infosys Enterprise Gamification
Platform (iEGP), Posti wanted to explore the viability of a
data-driven gamified rewards program to enhance engagement
and reduce churn within the delivery workforce.
Umashankar Lakshmipathy
SVP – Group Practice Engagement Manager
"In a changing business landscape, our
partnership with Infosys and leverage of
Infosys Cobalt™ is helping us adapt with agility.
The collaboration will enable us to focus more
on our core operations and, as customer needs
become more and more digital, to improve
our services."
Cloud adoption to accelerate
Next Gen Transformation
While several organizations have successfully adopted a
cloud-first strategy to build new digital capabilities and
transform their businesses, the journey to the cloud can be
challenging for some.
We’ve learned from our transformation journey and those of our
clients that this means embracing the cloud not to make one-off
tactical decisions but as part of a holistic strategy to modernize
the technology landscape and drive new business and operating
models. The focus needs to be on end-to-end transformation
of business capabilities through the standardization and
automation of the technology environment, open API model,
rejuvenated security posture, agile ways of working and
leveraging these new capabilities to drive quick build-learn-build
iterations. The cloud then acts as a force multiplier.
Cloud is now also looked upon more as a revenue generator
for business and not just the CIO’s program for cost-savings
or efficiency. As a result, in several industries such as financial
services, healthcare and others, industry-specific clouds
are being set up to address the specific customer, business
process, risk and regulatory requirements of the particular kind
of business.
Citizens is an exemplar. The bank has developed several APIs, set
up its landing zone in the cloud, migrated existing applications,
and built new cloud-first applications while leveraging deep
automation for both applications and infrastructure. While there
was a big focus on modern technology and agile practices,
robust controls are in place to ensure that all core systems
are resilient, and the legacy infrastructure is upgraded and
connected across ITSM processes.
Dennis Gada
SVP – Industry Head
The future of customer experience
is in the cloud
One of the most puzzling challenges of our times is determining
changing customer behaviors and trends. And then taking
advantage of this to quickly realign business strategies is
key to cementing competitive advantage. The challenge is
two-fold – shining a light on insights amid the chaos and multiple
sources of data, as also building the performance infrastructure
that can pivot on demand to where these insights point.
Companies are harnessing the power of the cloud and
cloud-native platforms for both.
Keen to be ever relevant to our clients’ agenda, we launched
Infosys Equinox to help enterprises deliver hyper-segmented,
personalized omnichannel commerce experiences for B2B and
B2C buyers. With this cloud-native platform, enterprises, across
industries like retail, CPG, telecom, manufacturing, automotive
and media, can pick and choose microservices and pre-built
experiences to build their own curated digital journeys.
Take, for instance, Nu Skin Enterprises, a global leader in beauty
and wellness that thrives on delivering engaging and innovative
experiences for their consumers and affiliates. They are keen
to scale their business model with connected commerce
capabilities. This means being able to deliver and quickly scale
shopping experiences across multiple touchpoints, including
websites, mobile apps, social media and smart connected
devices. Digital advances that can prove valuable on this journey
include social commerce, conversational commerce, augmented
reality, and IoT commerce, which if implemented, will enable
them to engage with consumers through rich digital experiences.
Nu Skin is looking to take advantage of the cloud and Infosys
Equinox to reimagine how they connect with their customers
and create a new paradigm for personalized beauty and
wellness shopping.
Ambeshwar Nath
SVP – Industry Head
"We doubled down on our cloud migrations
and migrated several applications in the
cloud, significantly reducing costs, building
in automation, improving from a security
perspective and perhaps, most importantly,
growing confident in our ability to respond to
market disruptions with agility."
"Infosys Equinox will give us the end-to-end
social commerce capabilities we need to
transform our business model and provide
innovative customer engagement. We're
creating best-in-class architecture foundations
that will power digital experiences well into
the future."
Petteri Naulapää
SVP, ICT and Digitalisation, Posti
Michael Ruttledge
Chief Information Officer, Citizens
Joe Sueper
Chief Technology Officer, Nu Skin Enterprises
Infosys Integrated Annual Report 2021-223Infosys Integrated Annual Report 2021-222 One people culture – powered by lifelong learning
Where careers don’t stand still
While helping our clients navigate their next, our own ambitious
journey to the next in the world of digital, is steered by our
employees. Ensuring they are making progress in their career
journeys and realizing their aspirations is a key driver of our
people practice. To this end, we have engineered Infosys Career
Gambit, a comprehensive program to empower our employees
with a roadmap for future readiness.
The program comprises several components. A vital framework
driving its success is Infosys Digital Quotient, the single
composite digital maturity index that nudges and tracks
the steps we take as individuals and teams towards digital
preparedness. Lex, our homegrown learning platform, helps
accelerate the capability-building. Our employees are offered
several opportunities to grow varied skills and gain
Skill Tags – a unique add-on identification of expertise in new
and emerging skills. They can then transition to performing
complex jobs requiring multi-specializations, naturally evolving
into a newer breed of jobs we call Digital Specialists and Power
Programmers. Continuously building in-demand skills, they
can apply for more challenging positions in the Company
through Infosys Marketplace – a platform that matches internal
job seekers and relevant roles. The Bridge initiative facilitates
those significant career shifts within the organization otherwise
possible only through earning additional specialized degrees
and qualifications, while the Accelerate program lets employees
gather experience and gain exposure in skill areas of the future
through short-term projects.
With the business set to evolve and journey to an increasingly
fast-paced digital future, Infosys Career Gambit is geared and
structured to nurture and sustain the staggering growth and
demand for talent while also enabling bespoke individual
aspirations of career growth.
Nandini S.
SVP – Group Head – Organization Development
"We have developed systems for hiring,
training and retaining employees like an
elaborate science."
Nandan M. Nilekani
Chairman, Infosys
Digital inclusion for all
Technology has fundamentally changed the way we approach
life and work. At Infosys, technology informs our people strategy
through the creation of virtual work arrangements that enable
inclusive and flexible work. It also creates the opportunity to
work with an organization where diverse talent can participate
fully, learn, collaborate and have fun.
Building in-market talent pools, closer to our clients, to deliver
and deploy digital solutions in our innovation hubs, allows us
to tap into local talent. In line with our core philosophy of hiring
for learnability and skilling through training, we also extend our
hiring beyond traditional STEM graduates to community colleges
in the US.
Enabling the participation of people from various social and
economic backgrounds, our reach into Tier 2 and 3 locations
in India, often invite first-generation college graduates as
our employees. With employees from 62 different countries
and 157 nationalities, our inclusive workplace celebrates
multi-cultural collaboration. Employee resource groups (ERG)
facilitate inclusion and belonging in the microcultures our
employees are a part of in their work teams, while addressing the
specifics of diverse groups. We create space to include LGBTQ+
employees and allies with the iPRIDE ERG. We include employees
with disabilities and enable their participation by extending to
them the support they need. We also actively work to strengthen
the participation of young mothers on their return to work.
Infosys Restart allows people of all ages to come back to their
careers whenever they are ready. And as we power all things
digital, we also aspire to leave ‘no one offline’. We want to ensure
the participation of everyone, in meaningful opportunities,
to fulfil their professional and personal potential.
Aruna C. Newton
AVP – Head – Diversity, Equity and Inclusion
Shaping the future of work
The world of work, for all of us, is transformed. Artificial
intelligence and software-powered automation, especially over
the past decade, have mechanized prior generations of routine
work. Some jobs, with automatable predictable steps have
been lost, with many others created, and almost all of them
will no doubt continue to change with growing digitalization.
The pandemic that raged over the past several months
accelerated the adoption of digital and dramatically disrupted
labor markets driving organizations to reevaluate every aspect of
work. At Infosys, we too have adapted and evolved.
As an organization, we deeply value learnability – the potential
to learn anything so we can do all the things to which we
aspire. This continues to serve us well, especially in tandem
with our significant investments in structured reskilling and
upskilling campaigns for employees, as they learn to harness
new opportunities and learn new skills. This also includes better
support for managers by, among other things, educating them
about the positive and negative impact they have on their teams,
and training them in managerial skills, such as providing and
receiving feedback. We are also exploring novel ways to amplify
organization-wide empathetic interactions, offset the deficits
in social capital as we tackle the need to redesign processes to
better support a hybrid work model.
We also see this as an opportunity to strengthen aspects of our
culture that will provide stability, social cohesion, and a sense of
belonging to all our employees while setting ourselves up for
success in the future.
Sushanth Tharappan
SVP – Head – Leadership Development
"We congratulate Infosys on their Certification.
Organizations that earn their employees’ trust
create great workplace cultures that deliver
outstanding business results."
Sarah Lewis-Kulin
Vice President, Best Workplace List Research,
Great Place to Work
“As a global Top Employer, Infosys has proven
its unwavering commitment to employees
on a global scale, joining a niche group of
companies that have achieved a certification
through the Top Employers Program. We are
excited to celebrate and applaud them for their
achievement in 2022.”
David Plink
CEO, Top Employers Institute
Infosys Integrated Annual Report 2021-225Infosys Integrated Annual Report 2021-224 One shared purpose – inspired by our commitment to the larger community
Working to preserve the planet
As a responsible corporation, Infosys is striving to drive its
business sustainably through focused action, collaboration,
advocacy, and thought leadership.
Resource efficiency and circularity is the foundation of our
sustainability program. Over the last decade, we have been
driving energy and water efficiencies to deliver reductions in
per capita consumptions of over 55% and 65%, respectively.
We built over 28 million sq. ft. of LEED Platinum certified office
space. We understand that creating a circular economy is key for
positive climate action as well as keeping resource extraction and
pollution under check.
We also manage our waste guided by the 3Rs (Reduce, Reuse,
Recycle) strategy.
We are at the forefront of climate action. We are carbon neutral
across Scopes 1, 2, and 3 since 2020 and are committed to
staying carbon neutral and further reducing our Scope 1, 2, and
3 emissions. We are committed to RE100, Science Based Targets,
and net zero; and we have set an internal carbon price.
We have, under the carbon offset program, migrated over
1,84,000 rural families from traditional cooking to sustainable
cooking methods, helping reduce deforestation and air pollution.
We have created urban green lungs and local ecosystems
thriving with biodiversity within our large campuses across India.
Bose Koorliyil Varghese
Head – Green Initiatives
“Addressing Climate Change is on the top of
the agenda today for companies across the
world. Infosys has been a leader in driving
climate action with its pioneering efforts and
achievements. As a Company disclosing to CDP
since 2006 and on the CDP Climate Change and
Supplier’s Engagement A-list in 2021, Infosys
has also set a benchmark for corporates by
setting an internal carbon price and Science
Based Targets, turning carbon neutral in
2020 and committing to Net Zero. We hope
Infosys continues to lead by example in India’s
transition to a low carbon economy.”
A future with meaningful opportunities for all
The future is digital. And we at Infosys believe that everyone
deserves a seat at the table.
Globally, Infosys and its CSR teams are actively deployed
to unleash the talent of every individual to participate in
this dynamic digital generation – irrespective of geography
or zip code.
Through Infosys Springboard, the Company delivers a global
digital learning platform that has free content uniquely curated,
designed and delivered to meet the digital skills needs of the
communities it serves. Beyond the thousands of courses easily
accessed online, Infosys Springboard encapsulates Infosys'
aspiration to drive human capacity-building and opportunity:
namely, that every educator, student, or professional learner
deserves an equal opportunity to engage in a 21st century
economy marked by technological innovation.
Infosys has always stood for educational excellence and belief
in the boundless learning potential of talent to keep pace with
social, technological, and cultural shifts. While the Company has
always invested in its own people, there was equally always an
eye open to the wider community.
This is where things have recently been getting exciting. In the
past year, Infosys Springboard deployment has reached millions
across India, Australia / New Zealand, the UK, Europe, and the
United States. Powered by Infosys Wingspan, our integrated
digital learning and collaboration platform, Infosys Springboard
includes content spanning across the digital, emerging
technologies, and leadership skills spectrum.
Inclusivity, creativity, and digital literacy. These are hallmarks
of the Infosys CSR ethos and we’ve only begun to see the
wide-ranging social impact of this human-centered investment.
Kate Maloney
AVP – Senior Principal – Business Consulting
Leading with our values,
delivering with accountability
The culture of an organization is the outcome of how its people
think and behave in response to internal and external stimuli.
These behaviors are guided by the Company’s core
values – either nurtured from the very beginning or developed
over time. Leaders and managers lean on these values to
navigate the path forward, especially during times of change
or stress. At Infosys, that code of conduct and backbone for
governance is C-LIFE – our acronym for Client Value, Leadership
by Example, Integrity and Tranparency, Fairness and Excellence.
C-LIFE, when followed in spirit, in tandem with every employee
exercising good judgment and seeking guidance or clarification
when in doubt, has proved to be a trusty compass. The Office
of Integrity and Compliance, in addition to the Company’s
managers, human resources and legal departments, provides
guidance and leadership for Infosys’ business on ethical
questions and matters of compliance.
This tone for an ethical, fair business, we believe, must not
only be set at the top and but also driven across the value
chain by all – employees, partners, and vendors in the Infosys
ecosystem. This will help us foster sustainable supply chains
where all participants benefit equitably. Governance at Infosys
also extends to striving to achieve high standards of data
privacy and information security. We consistently respond to our
stakeholders’ expectations to not only ensure security for all, but
also advance the standards.
We unfailingly let the laws of the land, where we conduct
business, regulate our relationships with our customers,
competitors, distributors and resellers.
Rachael Zavodnyik
AVP – Assistant General Counsel
“We’re delighted that we’ve been able to
reach a lot of highly-engaged and enthusiastic
educators through our courseware on the
Pathfinders Online Institute, the K12 platform
of Infosys Springboard in the USA. Together,
we’re ensuring that all young people have the
opportunity to become creators and not just
consumers of technology.”
“Today, business leaders face their greatest
mandate yet to be ethical, accountable, and
trusted to drive positive change. We continue
to be inspired by the World’s Most Ethical
Companies honorees and their dedication
to integrity, sustainability, governance, and
community. Congratulations to Infosys for
earning the World’s Most Ethical Companies
designation.”
Prarthana Borah
Director, CDP, India
Matt Richardson
ED of North America, Raspberry Pi Foundation
Timothy Erblich
Chief Executive Officer, Ethisphere
Infosys Integrated Annual Report 2021-227Infosys Integrated Annual Report 2021-226 Contents
09-25
Introduction
Integrated thinking at Infosys
Infosys at a glance
09 About this report
10
12
14 The Infosys Board of Directors
20 The Infosys leadership team
22 Chairman's message
24 Letter to the Shareholder
27-33
Approaching value creation
28 Operating context
30 Value creation model
32 Creating value through innovation
35-39
Strategy review
36 Strategy
38 Business highlights
41-57
Delivering value
Investors
42
44 Clients
46 Employees
48 Suppliers
49 Government and regulators
50 Communities
52 Environment
54 Awards and recognition
8
59-67
Governance
60 Approach to governance
65 ESG priorities on corporate governance
66 ESG governance
69-174
Statutory reports
70 Board’s report
82 Annexures to the Board's report
113 Management's discussion and analysis
130 Corporate governance report
169 Investor contacts
171 Risk management report
174 CEO and CFO certification
175-329
Financial statements
175 Standalone
255 Consolidated
330-368
Business Responsibility and
Sustainability Report
Independent Assurance Statement on
non-financial sustainability disclosures
Read our online Integrated
Annual Report 2021-22
Integrated Annual Report 2021-22
About this report
About this report
Over the last 40+ years, Infosys
has stayed true to the vision of the
founders – to earn the respect of our
stakeholders. It is no wonder then that a
holistic appreciation of progress inclusive
of the universe of stakeholders from
clients to communities, employees,
suppliers, investors and the government
has continued to inform our collective
efforts and results, since inception.
Infosys adopted the Global Reporting Initiative (GRI)
principles to disclose performance on non-financial
aspects of the business 15 years ago and became the
first IT company to publish sustainability performance
in accordance with the GRI G4 (comprehensive)
criteria in 2014.
This is the first Integrated Annual Report of Infosys Limited.
Our Integrated Annual Report provides quantitative
and qualitative disclosures on material topics and our
relationship with our stakeholders. It also describes
our strategy, leadership commitment and culture that
celebrates people, performance and purpose.
The Infosys Integrated Annual Report 2021-22 has been
prepared in accordance with the International Integrated
Reporting Framework, developed by the International
Integrated Reporting Council (IIRC), the GRI Standards and
SASB Standards. This report also includes the Business
Responsibility and Sustainability Report (BRSR), prepared
in accordance with the guidelines issued by the Securities
and Exchange Board of India (SEBI).
The financial and statutory data disclosed in the statutory
sections of this report meet the requirements of the
Companies Act, 2013 (including the rules made thereunder)
and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.
Reporting period
The information is reported for the period April 1, 2021
to March 31, 2022. For key performance indicators (KPIs),
comparative figures for the last three to five years
have been incorporated in the report to provide a
comprehensive view.
Auditors' reports
The Auditors’ Report for fiscal 2022 from Deloitte Haskins
& Sells LLP, Chartered Accountants (ICAI Firm Registration
Number 117366W/ W-100018) does not contain any
qualification, reservation or adverse remark. The Report is
enclosed with the financial statements in this Integrated
Annual Report.
The Secretarial Auditors’ Report for fiscal 2022 from
Parameshwar G. Hegde of Hegde & Hegde, Practicing
Company Secretaries, does not contain any qualification,
reservation or adverse remark. The Secretarial Auditors’
Report is enclosed as Annexure 5 to the Board’s report.
Independent assurance
The non-financial sustainability disclosures in this
Integrated Annual Report are verified by KPMG Assurance
and Consulting Services LLP. The Independent Assurance
Statement is available as part of this Integrated
Annual Report.
Approach to materiality
The universe of our material topics within the domains of
environmental, social and governance (ESG) is complex
and multilayered, one that is deeply intertwined with
the value we seek to create through our business for our
stakeholders. We have also mapped our contribution to the
Sustainable Development Goals (SDGs) through the Infosys
ESG Vision 2030 document.
Read more in Infosys ESG Vision 2030
Management's review
This Integrated Annual Report has been reviewed by the
Management of the Company.
Feedback
Share your feedback about the report to investors@infosys.com
Infosys Integrated Annual Report 2021-229Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creationInfosys Integrated Annual Report 2021-22
Integrated thinking at Infosys
Our integrated thought process is engineered to create, sustain and deliver value to
all our stakeholders. We achieve this by adhering to a strong set of values and code of
conduct, being aware of key developments in the external environment, deploying
resources optimally, executing our holistic strategy and continuously monitoring and
managing any risks to our business.
Our code of conduct
Our Code of Conduct and Ethics
sets forth our core values, shared
responsibilities, global commitments,
and promises.
Read our Code of Conduct and Ethics
Informing our thinking
Our operating context
Today’s highly dynamic technology landscape
demands that business leaders address the
twin imperatives of extending the value of
existing investments, and transforming and
future-proofing their organizations in ways
that are both disruptive and visionary.
For the IT industry, these challenges mean
deploying the power of next-generation
technologies, including the full potential of
cloud computing.
Read more on page 28
Our values
Our values inform the day-to-day running of the Company. They form our ethical
backbone. Clear and simple, our values are encapsulated in the acronym C-LIFE.
Read more in our Code of Conduct and Ethics
Our stakeholders' expectations
At Infosys, we believe that stakeholder
engagement is critical and follow a robust
engagement process for our internal and
external stakeholders. We strive to create
meaningful and long-lasting relationships
with our stakeholders, which include
clients, employees, investors, suppliers,
alliance partners, communities, and
government and regulatory bodies.
Read more in the Infosys ESG Vision 2030
Our material topics shaping our
ESG Vision 2030
Shaped by the expectations of our
stakeholders and prevailing economic,
social and environmental trends, our
material issues are those that have the
potential to influence business results,
our social relevance and the quality of our
relationships with our stakeholders.
Read more in the Infosys ESG Vision 2030
Resources we deploy to create value
Financial Capital
Natural Capital
Intellectual Capital
Manufactured Capital
Human Capital
Social and Relationship Capital
Integrated thinking
at Infosys
Integrated thinking at Infosys
Corporate strategy and ESG ambitions to power value creation
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 their journey to a digital future.
We have embraced a four-pronged strategy to strengthen our relevance with clients and drive accelerated value creation
Scale agile
digital
Energize the
core
Reskill our
people
Expand
localization
Read more on page 36
Our ESG ambitions
Vision 2030
To shape and share solutions that serve the development of businesses and communities
Environment
Preserve our planet by shaping and sharing
technology solutions
Social
Enable community development by creating
meaningful opportunities for all
Governance
Serve the interests of all our stakeholders by
leading through our core values
Value creation for stakeholders
Being a partner
to clients
Being a people
Company
Being a corporate
citizen
Being an
environmental
steward
Being an ethically
strong organization
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-221011Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Infosys at a glance
Employees
3,14,015
No. of employees
Revenues
I1,21,641 cr
Total
Global footprint
39.6%
Women employees
57.0%
Digital
Clients
Year
US$ 100 million+
US$ 50 million+
US$ 10 million+
US$ 1 million+
2021-22
38
64
275
853
54 countries
Infosys at a glance
Infosys at a glance
Our solutions are classified as digital and core.
Digital
Core
Experience
Insight
Innovate
Accelerate
Assure
Application management services
Infrastructure management services
Proprietary application development services
Traditional enterprise application implementation
Independent validation solutions
Support and integration services
Product engineering and management
Business process management
7
5
2
8
1
6
3
9
4
10
11
12
14
Infosys Cobalt™ is a set of services, solutions, and platforms for enterprises to accelerate their
cloud journey.
Revenue by geography
North America
Europe
61.7%
24.8%
Rest of the World
10.6%
India
2.9%
Innovation hubs and design studios
1. Hartford
2. Richardson
3.
Indianapolis
4. Raleigh
5. Phoenix
6. Providence
7. San Francisco
8. Houston
9. Malvern
10. London
11. Düsseldorf
12. Bucharest
13. Melbourne
14. Shanghai
Key products and platforms
13
Infosys Cyber Next
Infosys Applied AI
Infosys Live Enterprise Application Suite
Infosys Cortex
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-221213Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation The Infosys Board of Directors
The Infosys
Board of Directors
The Infosys Board of Directors
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and
Managing Director
Kiran Mazumdar-Shaw
Lead Independent Director
Nomination and remuneration
committee - Chairperson
Corporate social responsibility
committee - Chairperson
Environmental, social and
governance committee -
Chairperson
Risk management
committee - Member
Board composition
75%
75%
62.5%
25%
25%
37.5%
Michael Gibbs
Independent Director
Cybersecurity risk
sub-committee - Chairperson
Audit committee - Member
Nomination and remuneration
committee - Member
Risk management
committee - Member
Bobby Parikh
Independent Director
Audit committee - Member
Risk management committee -
Member
Stakeholders relationship
committee - Member
D. Sundaram
Independent Director
Audit committee - Chairperson
Risk management committee -
Chairperson
Stakeholders relationship
committee - Chairperson
Nomination and remuneration
committee - Member
Cybersecurity risk
sub-committee - Member
Uri Levine
Independent Director
Corporate social responsibility
committee - Member
Environmental, social and
governance committee - Member
Risk management committee -
Member
Cybersecurity risk
sub-committee - Member
Chitra Nayak
Independent Director
Corporate social responsibility
committee - Member
Environmental, social and
governance committee - Member
Risk management committee -
Member
Stakeholders relationship
committee - Member
Independent Directors
Non-Executive and Non-Independent
Director and Executive Director
Men
Women
Indian
Foreign national
Note: The committee composition is as of March 31, 2022.
Note: The committee composition is as of March 31, 2022.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-221415Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation The Infosys Board of Directors
Nandan M. Nilekani
Chairman and Non-Executive and Non-Independent Director
(Promoter)
Nationality
Age
Indian
66
Date of appointment
August 24, 2017
Tenure on Board
Term ending date
Shareholding
4.6 years
NA
4,07,83,162 shares (0.97%)
Board memberships – Indian listed companies
Infosys Limited
Non-Executive and
Non-Independent Director
Committee details as per Regulation 26 of
Listing Regulations(1)(2)
Member: Nil
Chairperson: Nil
Areas of expertise
Financial
Diversity
Board service & governance
Sales & marketing
Global business
Sustainability & ESG
Leadership
Risk management
Information Technology
Mergers & Acquisitions
Cybersecurity
Profile available here
The Infosys
Board of Directors
The Infosys Board of Directors
Salil Parekh
Chief Executive Officer and Managing Director
Nationality
Age
Indian
57
Kiran Mazumdar-Shaw
Lead Independent Director
Nationality
Age
Indian
69
Michael Gibbs
Independent Director
Nationality
Age
American
64
Date of appointment
January 02, 2018
Date of appointment
January 10, 2014
Date of appointment
July 13, 2018
Tenure on Board
4.2 years
Date of reappointment
April 01, 2019
Date of reappointment
July 13, 2021
Term ending date
January 01, 2023
Tenure on Board
8.2 years
Shareholding
6,73,723 shares (0.02%)
Term ending date
March 22, 2023
Board memberships – Indian listed companies
Shareholding
Nil
Tenure on Board
Term ending date
Shareholding
3.7 years
July 12, 2026
Nil
Infosys Limited
Executive Director
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: Nil
Chairperson: Nil
Areas of expertise
Financial
Diversity
Board service & governance
Sales & marketing
Global business
Sustainability & ESG
Leadership
Risk management
Information Technology
Mergers & Acquisitions
Cybersecurity
Profile available here
Independent Director
Infosys Limited
Independent Director
Infosys Limited
Biocon Limited
Narayana
Hrudayalaya Limited
Syngene
International Limited
Executive Director
Non-executive and
Non-independent Director
Non-executive and
Non-independent Director
United Breweries Limited
Independent Director
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: 1
Chairperson: 1
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: 2
Chairperson: Nil
Areas of expertise
Financial
Diversity
Board service & governance
Sales & marketing
Global business
Sustainability & ESG
Leadership
Risk management
Information Technology
Mergers & Acquisitions
Areas of expertise
Financial
Diversity
Board service & governance
Cybersecurity
Sales & marketing
Profile available here
Global business
Sustainability & ESG
Leadership
Risk management
Mergers & Acquisitions
Profile available here
1.
In the committee details provided, every chairpersonship is also considered as a membership.
1.
In the committee details provided, every chairpersonship is also considered as a membership.
2. For the purposes of determination of committee details as per Regulation 26 of the Listing Regulations, membership and chairpersonship of only the audit
2. For the purposes of determination of committee details as per Regulation 26 of the Listing Regulations, membership and chairpersonship of only the audit
committee and the stakeholders relationship committee across all public companies are considered.
committee and the stakeholders relationship committee across all public companies are considered.
3. Details are as of March 31, 2022.
3. Details are as of March 31, 2022.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-221617Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation The Infosys Board of Directors
The Infosys
Board of Directors
The Infosys Board of Directors
D. Sundaram
Independent Director
Nationality
Age
Indian
69
Uri Levine
Independent Director
Nationality
Age
Israeli
57
Bobby Parikh
Independent Director
Nationality
Age
Indian
58
Chitra Nayak
Independent Director
Nationality
Age
American
59
Date of appointment
July 14, 2017
Date of appointment
April 20, 2020
Date of appointment
July 15, 2020
Date of appointment
March 25, 2021
Tenure on Board
Term ending date
Shareholding
4.7 years
July 13, 2022
Nil
Tenure on Board
1.9 years
Term ending date
April 19, 2023
Shareholding
Nil
Tenure on Board
1.7 years
Tenure on Board
1 year
Term ending date
July 14, 2023
Term ending date
March 24, 2024
Shareholding
8,538 shares (0.00%)
Shareholding
Nil
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Board memberships – Indian listed companies
Independent Director
Infosys Limited
Independent Director
Independent Director
Infosys Limited
Independent Director
Infosys Limited
ACC Limited
Independent Director
Independent Director
Independent Director
Crompton Greaves
Consumer Electricals Limited
GlaxoSmithKline
Pharmaceuticals Limited
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: 7
Chairperson: 5
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: Nil
Chairperson: Nil
Areas of expertise
Diversity
Board service & governance
Global business
Sales & marketing
Leadership
Sustainability & ESG
Information Technology
Risk management
Areas of expertise
Financial
Diversity
Board service & governance
Mergers & Acquisitions
Cybersecurity
Sustainability & ESG
Profile available here
Global business
Risk management
Leadership
Cybersecurity
Profile available here
Mergers & Acquisitions
Information Technology
Infosys Limited
Biocon Limited
Independent Director
Indostar Capital
Finance Limited
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Independent Director
Member: 8
Chairperson: 4
Areas of expertise
Financial
Diversity
Board service & governance
Sales & marketing
Global business
Sustainability & ESG
Leadership
Risk management
Information Technology
Mergers & Acquisitions
Profile available here
Committee details as per Regulation 26 of
Listing Regulations (1)(2)
Member: 1
Chairperson: Nil
Areas of expertise
Diversity
Mergers & Acquisitions
Global business
Board service & governance
Leadership
Sustainability & ESG
Information Technology
Risk management
Cybersecurity
Sales & marketing
Profile available here
1.
In the committee details provided, every chairpersonship is also considered as a membership.
1.
In the committee details provided, every chairpersonship is also considered as a membership.
2. For the purposes of determination of committee details as per Regulation 26 of the Listing Regulations, membership and chairpersonship of only the audit
2. For the purposes of determination of committee details as per Regulation 26 of the Listing Regulations, membership and chairpersonship of only the audit
committee and the stakeholders relationship committee across all public companies are considered.
committee and the stakeholders relationship committee across all public companies are considered.
3. Details are as of March 31, 2022.
3. Details are as of March 31, 2022.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-221819Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation The Infosys leadership team
The Infosys
leadership team
Executive Vice Presidents
Anand Swaminathan
Segment Head –
Communication, Media
and Technology
Anant
Raghavendra Adya
Group Practice
Engagement Manager –
Cloud Services
Anantharaman
Radhakrishnan
Chief Executive Officer &
Managing Director – BPM
Andrew Groth
Industry Head –
Financial Services,
Healthcare, Insurance and
Life Sciences
Ashiss Kumar Dash
Segment Head – Energy,
Utilities, Resources and
Services
Balakrishna D.R.
Service Offering Head –
Energy, Utilities,
Communications,
Resources & Services
Deepak Padaki
Group Head – Corporate
Strategy, and Chief Risk
Officer
Dinesh R.
Co-Head of Delivery
Inderpreet Sawhney
Group General Counsel
and Chief Compliance
Officer
Jasmeet Singh
Segment Head –
Manufacturing
Jayesh Sanghrajka
Deputy Chief Financial
Officer
Kapil Jain
Global Head of Sales and
Capability, IBPM
Karmesh Vaswani
Segment Head – CPG,
Logistics & Retail
Krishnamurthy
Shankar
Group Head – Human
Resources and Infosys
Leadership Institute
Martha King
Chief Client Officer
Salil Parekh
Chief Executive Officer and
Managing Director
Ravi Kumar S.
President
Nilanjan Roy
Chief Financial Officer
Mohit Joshi
President
Narsimha Rao M.
Head Global Services –
Cloud, Infrastructure and
Security Solutions
Rajeev Ranjan
Service Offering Head –
Manufacturing, India &
Japan Business Units
Richard Lobo
Head, HR – Infosys Limited
Satish H.C.
Co-Head of Delivery
Shaji Mathew
Service Offering Head –
Financial Services,
Healthcare, Insurance &
Life Sciences
Srikantan Moorthy
Head – US Operations and
Global Head – Education,
Training and Assessment
Sumit Virmani
Chief Marketing Officer
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-222021Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Chairman's
message
Chairman's message
Winning in the crucible of our times
As Dickens said, “It was the best of times, it was the worst
of times”; The pandemic tested us all severely. At Infosys,
we responded with alacrity and demonstrated exceptional
resilience in dealing with an unprecedented calamity.
Even as the world experienced chaos and disruption,
we delivered our highest annual growth in a decade.
We responded as One Infosys.
Our CEO, Salil Parekh, a big champion of the One Infosys
approach, brought together all the capabilities and
intellectual capital of Infosys to create value and make
a disproportionate impact for our clients. This required
company-wide orchestration of our strengths, deep
collaboration amongst our leaders and synergizing of all
our business units and service lines. Salil has delivered
industry leading performance for the Company, and it is in
the interest of the Company and its stakeholders to secure
the continuity and stability of the current leadership. I am
delighted that the Board has unanimously recommended
to the shareholders to approve the reappointment of Salil
Parekh as Chief Executive Officer and Managing Director,
till March 31, 2027.
The imperative to bring all our assets and capabilities
to every client interaction required us to reimagine our
own digital infrastructure, which we have done with
the ‘Live Enterprise’ approach over the last few years.
The digital transformation happening across industries,
accelerated by the pandemic, also meant that we needed
to strengthen our own offerings, along with deepening
our understanding of the latest technology trends.
For example, the continuous investments we are making in
Infosys Cobalt™-led cloud solutions is differentiating us as
we assist our clients to become more agile and responsive
in this new paradigm of how enterprises use technology.
Our people-first collaborative culture – staying invested
in talent, even as we scale our workforce globally to
capitalize on expanding market opportunities – is integral
to the One Infosys approach. We have been striving for
this culture to permeate our entire talent strategy – from
aligning incentives to ensuring learning outcomes and
performance, from upskilling and reskilling people, to
investing in leadership development to prepare the firm
for the challenges of tomorrow.
In all this, we are united by a common purpose – to amplify
human potential and create the next opportunity for
people, businesses and communities. From actively
shaping the evolving future of work for our employees to
empowering more people to meaningfully participate in
the digital future; from implementing sustainability in all
our campuses, to shaping carbon offset projects in the
community; and by retaining the trust of all stakeholders
through sound corporate governance – we care deeply
about it all. Our shared sense of purpose gives us all
the emotional fuel to put our best foot forward on
every dimension.
The future – full of uncertainties – is not something that
any of us can claim to predict. Rising interest rates, the
situation in Ukraine, the lingering impact of COVID in many
parts of the world, the disruption of supply chains, all
accompanied by mounting costs and increased volatility,
is confronting corporate leaders with complexities and
challenges that are only just being understood. At the
same time, digital acceleration is creating tremendous
new opportunities for differentiation and gaining market
leadership. Infosys is a trusted navigator for our clients as
they seek to create value from technology-led innovation
and business transformation. We know that we have never
had as much potential as we do right now, to leverage our
expertise to benefit our clients and the broader society.
This opportunity that lies before us – to make an indelible
mark with our digital prowess, our empathy for clients,
our investment in employees and a renewed sense of
purpose - is greater than it has ever been. This gives us
great optimism about the future and equally puts great
responsibility on us to make that future happen.
Bengaluru
May 21, 2022
Nandan M. Nilekani
Chairman
“We are united by a
common purpose –
to amplify human
potential and create
the next opportunity
for people, businesses
and communities.
„
Nandan M. Nilekani
Chairman
22
Infosys Integrated Annual Report 2021-222223Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creationInfosys Integrated Annual Report 2021-22 Letter to the
Shareholder
Letter to the Shareholder
Dear Shareholder,
Financial year 2022 was an outstanding year for the
Company, our clients, our employees, and our shareholders.
We have had the fastest growth, close to 20%, in 11 years.
We are gaining market share. Our digital work is now almost
60% of all that we do, growing at about 40%.
Our digital capabilities are comprehensive and of immense
value for our clients. Our Cobalt™ cloud capabilities
are market-leading across infrastructure-as-a-service,
platform-as-a-service, and software-as-a-service. Our Equinox
platform is attracting more digital retail businesses and
delivering leading omni-channel experiences for them.
We continue to build our data, analytics, AI, cybersecurity,
and IoT expertise. Our automation capabilities are
industry-leading and poised to support our clients as they
look at ongoing efficiency and productivity improvements.
We are continuing to build deeper relationships with our
clients and growing the trust they have in us. The number
of client relationships with revenues of more than
US$ 100 million a year are at 38. And client relationships
accounting for more than US$ 50 million per year are at 64.
Our large deal momentum continues with 94 large deals
totaling US$ 9.5 billion for the year.
As a consequence of our deep capabilities and the trust
of our clients in us, we have emerged amongst the fastest
growing companies in the industry and the fastest growing
technology services brand globally.
Our engagement with employees continues to strengthen.
Over 140,000 new employees joined us last year, with over
80,000 of them coming directly from colleges. Our learning
platform has enabled 39 million hours of skilling during
the year. We continue to bring our employees expanded
opportunities for career acceleration and development
through promotions and bridge programs. We ended
the year with over 300,000 employees. Over 39% of our
employees are women. Our focus is on building a diverse
workforce with a strong leadership pipeline.
Our One Infosys approach enables all our capabilities and
employees to work for the benefit of our clients and support
them in their digital transformation agenda. We see this as
being a key differentiator in how we engage with our clients
and across the company.
We had a successful year in delivering an operating margin
of 23%. We returned cash to our shareholders in the
form of dividends of US$ 1.7 billion and share buyback of
US$ 1.5 billion, for a total of US$ 3.2 billion for the year.
Our earnings per share increased by 15% in Rupee terms
this past year.
Our commitment to the communities we live and
operate in and the environment, social, and governance
guidelines remains steadfast. With the Infosys Foundation
in India, we created impact across areas including health,
education, and women empowerment. Our Infosys
Springboard program helps build digital skills by providing
free learning content globally.
On the global technology services landscape, Infosys
stands as one of the leading companies. The overall sector
continues to see strong traction with digital transformation
being a core strategic initiative for global enterprises
and governments.
The strategic direction of the Company, the trust of our
clients, the dedication and execution by our employees,
the drive and cohesiveness of our leadership team, and
guidance of our Board members have resulted in our
total shareholder return over the past four years to be the
leading one among our peers.
At the time of writing this we are starting to see inflation
across several markets in the world, interest rate increases,
with the European conflict and continuing COVID-19
impact in some geographies creating supply chain
constraints. While our demand outlook is strong, we
remain vigilant to ensure we are agile and evolve our
approach with the changing dynamics.
As I look ahead, nonetheless, I remain more optimistic
than ever. Large enterprises and governments everywhere
are adopting digital and driving transformation to make
them more connected with their customers, employees,
and partners. We are especially well-positioned to be the
provider of choice with the set of capabilities that are most
relevant to our clients.
The future is digital, and Infosys is the leader in digital.
With warm regards,
Bengaluru
May 17, 2022
Sd/-
Salil Parekh
Chief Executive Officer and Managing Director
“Our One Infosys
approach enables all
our capabilities and
employees to work
for the benefit of our
clients and support
them in their digital
transformation agenda.
„
Salil Parekh
Chief Executive Officer and Managing Director
24
Infosys Integrated Annual Report 2021-22
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-222425Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation APPROACHING
VALUE CREATION
Operating context
Operating context
Software and computing technology are transforming
businesses in every industry around the world in a
profound and fundamental way. During fiscal 2022,
we witnessed an acceleration in the adoption of
digital technologies as businesses attempted 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.
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 reimagining 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 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.
During fiscal 2022, businesses around the world continued
to battle disruptions due to the COVID-19 pandemic,
balancing employee well-being, new ways of remote and
hybrid working and managing the changing expectations
of employees and customers.
The future of the technology industry is being shaped by
the following trends:
• An accelerating demand for IT services with digital
becoming mainstream and new growth pockets e.g.,
cloud, AI, cybersecurity, IoT and immersive technologies
• A significant increase in enterprise spending on hybrid,
multicloud-led transformation
• A proliferation of tech natives and large enterprises
reinventing digital business models
• An intense war for talent as clients embrace new ways of
working, coupled with scarcity of niche digital skills
• Environmental, Social and Governance (ESG) becoming
a strategic theme for all stakeholders of an enterprise
Responsibility and responsiveness –
key to sustained business success
If companies want to take charge of their destiny, they
must reimagine themselves in a more resilient, agile,
de-layered and de-bureaucratized manner. This means
making themselves so sentient that the nerve tips of the
organization are able to quickly respond to the changes
in the context in which the business finds itself. And this
context extends into the environmental, social and
governance ecosystems that the business operates in.
As an early proponent of responsible business, we at
Infosys have readily embraced ESG factors into everything
we do. Our ESG Vision 2030 articulates our ambitions on
this front.
We have balanced success as a business with unwavering
focus on exemplary governance and responsiveness to
the needs of our stakeholders. Our primary stakeholders
include investors, customers, employees, suppliers,
communities, government and regulatory bodies.
The expectations of our investors include sustainable
business performance, returns and good reputation.
Our customers expect long-term business value in every
engagement and demand innovative solutions to the
business problems they need resolved. In a knowledge-led
and people-intensive industry like ours, employees expect
organizations to provide opportunities to continuously
learn and reskill themselves while navigating new
opportunities and a northward career trajectory. Hybrid
work models, safety and wellness are also important
expectations from the discerning talent pool. Suppliers are
keen to strengthen long-term relationships and win-win
propositions. The community seeks improved lives
through access to education, healthcare and livelihood
opportunities. Governments and regulators emphasize
good corporate governance, legal compliance and overall
contribution to the economy.
Operating context
Introducing our capitals
To leverage business opportunities, respond to emerging
trends and create sustained stakeholder value, we are
dependent on our key resources and relationships,
collectively termed ‘capitals’. The quality, accessibility,
and affordability of these capitals are integral to our
value-creation ability. Our strategy, ESG ambitions
and stakeholder focus drive effective and responsible
management of these capitals.
Interaction between the capitals
The capitals, as introduced below, provide a holistic
perspective of how short, medium and long-term value
is created and preserved at Infosys. Our strategy and ESG
vision guide the conducive interaction of the capitals with
each other to create synergy across the organization as we
strive to fulfil the expectations of all our stakeholders as
One Infosys. The Financial, Intellectual, Human, Social and
Relationship, Manufactured and Natural Capitals serve as
key inputs to our business activities which facilitate their
interplay to generate outputs and outcomes which lead to
the creation of long-term value.
Financial Capital
Our strong performance on the back
of meticulous execution over the
years, as reflected in the combination
of high growth and profitability, has
led to building a strong, debt-free
and liquid Balance Sheet.
Intellectual Capital
Intellectual Capital is at the core of
our culture of innovation, generating
intellectual property that benefits all
the capitals.
Human Capital
Our people are our assets, our
Human Capital. Opportunities for
learning and reskilling, fulfilling
careers, safety and wellness are
integral to our culture.
Natural Capital
Natural Capital represents all
the natural resources that are
used and in turn are affected by
our operations.
Social and Relationship Capital
This capital represents our
engagements and relationships
with external stakeholder groups,
namely clients, investors, suppliers,
communities, and government
and regulators.
Manufactured Capital
Our Manufactured Capital includes
our offices, data centers, innovation
hubs and digital studios and our
technology infrastructure across
the globe.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-222829Introduction BRSRFinancial statementsApproaching value creationStrategy reviewDelivering valueGovernanceStatutory reports Value creation model
Value creation
model
Value created for stakeholders
Inputs
Process and Strategy
Outputs
Outcomes
-
o
G
t o - m a r ket business units*
i e n t offerings
C l
S trategy
Financial Capital
19.7% Constant currency revenue
growth
15.2% Earnings per share growth
29.1% Return on equity
Financial Capital
`76,782 cr Net assets
`38,660 cr Consolidated cash and
investments
Intellectual Capital
1,50,000
Employees trained in
digital skills
20+
19
150+
Innovation Hubs and Living Labs
Industry-leading products,
solutions and platforms
Startups in our innovation
ecosystem
Human Capital
3,14,015
Total no. of employees
125.6
Annual average training
hours per employee
`1,384(1) cr Investments in employee
well-being
(1) includes expenses incurred on account of COVID
Natural and Manufactured Capital
28.61 mn
sq. ft.
`1,542 cr
Highest rated green
buildings
Capex spend on tech
infrastructure
32
Climate change solutions
Social and Relationship Capital
`450 cr
1,741
29
12
Global CSR spends
Total number of active clients
No. of nearshore / tier-2
locations
No. of carbon offset projects
vironm ent
n
E
e digital
l
i
g
a
e
l
a
c
S
Our people and
the strong culture
of innovation
E
n
e
r
D
i
g
i
t
a
l |
Socia l
gize the core
ore Solutions
C
s
e
R
c ts
u
d
o
P r
|
G
o
v
E
x
p
a
e
r
n
n
d
a
n
c
e
l
o
c
a
l
i
z
a
t
i
o
n
s
Platform
k ill o ur people
|
Go-to-market business units*
Financial Services
and Insurance
Life Sciences and
Healthcare
Communications,
Telecom OEM and
Media
Energy, Utilities,
Resources and
Services
Retail, Consumer
Packaged Goods
and Logistics
Manufacturing
Hi-Tech
Infosys Public
Services and other
public service
enterprises
Others
which includes segments
of businesses in India,
Japan and China
Financial Capital
Profitable growth
Sustained / long-term cash flow
Intellectual Capital
Diversified portfolio of solutions
across industry segments
Innovation partner to clients
Partner of choice for social and
environmental solutions for the
community
Intellectual Capital
57.0% Digital revenues
41.2% Constant currency digital
revenue growth
Digital leader ratings
Artifacts published by the
Infosys Knowledge Institute (IKI)
Reports published by IKI
Patent portfolio
20
684
54
230
Human Capital
Human Capital
84,782
Fresh college graduates hired
globally
1,24,498 Women in the workforce
(39.6%)
Top employer in 22 countries across
Europe, Middle East, Asia Pacific,
and North America. Top ranking in
16 countries and #1 ranking in India
Best-in-class employee experience
and learning
Safe and inclusive workplaces
Natural and Manufactured Capital
Natural and Manufactured Capital
3rd
Consecutive year of being
carbon neutral across scope
1,2,3 emissions
48.9% Reduction in scope
1 and 2 emissions over the
BAU scenario
27-35% Client engagements include
climate change solutions
Social and Relationship Capital
4.8 mn
Enabled in digital skills
451
New client accounts
49,473
Employees in nearshore / tier-2
locations
1,84,000 Rural families continue to
benefit from our carbon offset
projects
Strong advocates of environmental
stewardship extending beyond our
boundaries
Productive, safe and healthy
workplaces for employees
Social and Relationship Capital
Positive impact on the communities
in which we operate
Trusted partner of choice for all
stakeholder groups
Investors
Clients
Employees
Suppliers
S
t
a
k
e
h
o
d
e
r
s
l
Communities
Government /
Regulators
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-223031Introduction BRSRFinancial statementsApproaching value creationStrategy reviewDelivering valueGovernanceStatutory reports
Creating value through innovation
Innovation is our way of generating value for all our stakeholders.
Investors
The value for investors lies in the sustained growth and profitability of the organization, which in turn relies upon
establishing a strong brand identity in the market as an innovative company and ensuring customer loyalty.
Creating value through
innovation
Creating value through innovation
Clients
True value for clients is realized when Infosys becomes their strategic technology partner and brings perspectives to be
combined with rapid, emerging-technology-led, customer-centric innovation.
Living Labs: An orchestrated set of innovation services that provide complete innovation life-cycle coverage to clients
Cybersecurity: Next-gen cybersecurity offerings
Data privacy: Privacy by Design (PbD) and Privacy Engineering
Strategic investments: Infosys has made strategic investments in units such as the Center for Emerging
Technology Solutions (iCETS), Domain Solutions Group, Strategic Technology Group and others.
Platforms and products: Creating innovative intellectual property and contributing to the
non-linear revenue growth is an important mechanism of generating value for shareholders.
Acquiring innovative firms: Constantly identifying new, relevant skills and building
capabilities in them is critical. An important mechanism to do so is acquiring niche and
innovative firms around the world.
Brand-building innovation: Some of our innovations are making a splash around
the world and establishing Infosys as a premier innovation partner for our clients
For instance, the Infosys Tennis Platform with ATP
#HackWithInfy is a coding competition for engineering students designed to
inculcate a culture of rapid problem-solving and innovative thinking early in
academic life.
Governments
Our value-generation mechanism for government and regulators focuses on
priorities such as employment generation, infrastructure and compliance
Localization: Creation of high-tech, knowledge service jobs is an indicator
of value for any government. Infosys is committed to creating a significant
number of local jobs in its key markets of North America, Europe, and APAC.
Global innovation hubs: Infosys has created a large network of Global
Innovation Hubs, Experience Centers and Design Studios across the world.
Innovation in e-governance: Infosys continues to partner governments around
the world to create and implement e-governance solutions.
t
n
e
l
a
t
n
o
i
t
a
v
o
n
n
s
b
u
h
n
o
i
t
a
v
o
n
n
i
f
o
n
o
i
t
a
z
i
l
a
b
o
l
i
l
G
s
n
o
i
t
a
v
o
n
n
i
e
c
n
a
n
r
e
v
o
g
-
E
a
c
o
L
Community
Our ESG vision to serve the development of people by shaping a future with meaningful
opportunities for all inspires our efforts for the community.
Tech for Good: Infosys is committed to using the digital, cloud and open-source technologies to
drive societal impact in our communities and enable our societal stakeholders to harness the power of
technology in their everyday.
s
d I P
n
r m s
e fi
t i o n
a
o
v
t
n
n
s t m e
t s a
c
u
d
ti v
a
g i n
v
e
v
Strate g ic i n
Platfor m s, p r o
o
n
g i n
uil d i n
A c q uirin
Bra n d-b
t y
a b i l i
y
a l t
t i t
y
n
t
y
e
fi
d p r o
Gro w th a n
e r l o
m
C u st o
d i d
Bra n
Invest o r s
t
n
e
m
y
o
l
p
m
E
e
r
u
t
c
u
r
t
s
a
r
f
n
I
e
c
n
a
i
l
p
m
o
C
t
n
e
m
n
r
e
v
o
G
Co
m
munity
E
d
D
C
y
b
ucation
ersecurity
ata privacy
Tech for Good
Infosys Springboard
ersecurity
ata privacy
b
y
C
D
Infosys Innovatio
Infosys Innovatio
Living Labs
Metaverse Fo
n N
n F
u
n
d
u
n
et
dry
w
o
r
k
Strategic enga
Long-term v
Outside-in persp
m
g
e
alu
e
e
n
t
e
c
tiv
e
Infosys Innovation Network and Infosys Innovation Fund: A network of hundreds of startups that
brings a cutting edge to Infosys’ innovation capabilities. The Infosys Innovation Fund is a strategic
corporate venture capital investment in successful startup partnerships to enhance the delivery
of joint-innovation to our clients.
Metaverse Foundry is one of the recent centers of excellence that Infosys has unveiled.
The Foundry leverages assets such as the Infosys XR Platform to build cross-platform
AR experiences.
Sustainability Practice Unit: The focus of this unit is to bring thought leadership,
consulting services, technology solutions, emerging-tech-led innovation, and
cultural adoption in the ESG space to clients and their value chain.
Clients
a rt n ers
P
E x p l o i ti n
L e
v
e
r
a
F
u
D
i
B
e
E
m
p
l
o
y
e
e
s
U
p
s
k
i
l
l
R
e
s
k
i
l
l
l
fi
l
l
i
n
g
c
a
r
e
e
r
s
L
e
x
g
i
t
a
l
Q
u
o
t
i
e
n
t
E
n
h
a
n
c
i
n
g
e
m
p
l
t
h
e
N
a
v
i
g
a
t
o
r
o
y
e
e
e
x
p
e
r
i
e
n
c
e
-
I
n
f
y
M
e
Employees
Employees are our most valuable assets. The value for employees
is characterized by constant upskilling and reskilling opportunities,
recognizing and rewarding top performers, and instilling in them a culture
of grassroots innovation.
Lex: The indigenous companion for Infoscions to learn on-the-go.
It manages the entire spectrum of the learning experience for them ranging
from recommending learning paths to completing certifications and
amplifying potential skills to meet business needs while enhancing their
ability to have meaningful conversations with clients.
g s y n ergies
g startu ps
g i n
o
ti o
a
v
J o i n t i n n
t g
o i n
d I n f o
n
L i v i n g L a b s a
J
n t ers a n d C oEs
o v atio n N etw ork
n c
o -t o - m
s y s I n
ark et
n
e
Digital Quotient: This is a comprehensive score that helps Infoscions keep
track of their digital capabilities.
Be The Navigator: Our Be The Navigator program fosters grassroots innovation,
enhances collaboration, facilitates client engagement and drives business goals
that deliver the most value for our clients.
InfyMe: Our mobile-enabled self-service platform allows employees to conduct
all transactions and access company processes and information anywhere, anytime.
More than 200 touchpoints for various activities are merged into the single intuitive interface
of the InfyMe app.
Infosys Great Manager's Program: Helps build innovation mindset and capability in our managers.
Infosys Springboard: The future of India will be shaped by today’s younger generation who need digital literacy.
Through Infosys Springboard, we have has democratized learning by giving anytime-anywhere access to knowledge
and experts in addition to digital content. By reimagining learning through gamification, we have made learning fun
and creative so that can be sustained lifelong.
Read more in the Management Discussion and Analysis | Infosys ESG Report 2021-22 | Talent Pulse Report | ATP
Partners
Partners are major contributors to the success of Infosys. The value for partners come from exploiting the synergies,
through joint research and go-to-market (GTM).
Joint innovation centers: Infosys incubates emerging technologies under different centers of excellence which extends
innovative solutions to our clients.
Joint GTM: Infosys engages in partnerships with numerous startups, universities and hyperscalers across geographies.
Infosys Innovation Network: Infosys creates access to market for the most innovative startups from around the world.
Through the Innovation Network, Infosys is able to de-risk startup innovations for our clients.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-223233Introduction BRSRFinancial statementsApproaching value creationStrategy reviewDelivering valueGovernanceStatutory reports
STRATEGY REVIEW
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 their
journey to a digital future.
We have embraced a four-pronged strategy to strengthen
our relevance with clients and drive accelerated
value creation:
Scale agile digital
Reskill our people
Energize the core
Expand localization
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.
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 four years, we have executed this strategy
and generated significant outcomes.
Scale agile digital
Our revenue from digital technology-related services
and solutions has more than doubled in the last three
years, and currently comprises 57% of our total revenue.
We are rated as a leader in 54 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.
Our human experience-related services expanded with
the opening of eight innovation hubs, six digital studios,
12 proximity centers and 20 living labs around the world.
During the fiscal, we entered into a definitive agreement
to acquire oddity to augment our human experience
capabilities in Europe. Through our academia partnerships
with Purdue, Trinity, RISD and eCornell, we have trained
over 4,500 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. Our AI platform, Infosys Applied AI, helps
enterprises adopt a comprehensive approach and roadmap
to scaling enterprise-grade AI for their businesses.
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, 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. We invested in, and
built strong partnerships with cloud hyperscalers such as
AWS, GCP and Microsoft Azure, and SaaS providers.
In fiscal 2022, we expanded our integrated cloud offering
Infosys Cobalt™, which now offers over 35,000 cloud
assets and over 300 industry cloud solution blueprints.
Infosys Cobalt™ is helping enterprises to securely access
cloud capabilities with the assurance of single-point
accountability for outcomes.
We launched Infosys Equinox, our flagship digital
commerce platform, which is a set of core microservices
encompassing all digital commerce scenarios to help
enterprises rapidly build and deploy features across all
touchpoints and channels, without the friction associated
with legacy platforms.
Our Automation and AI services grew on the back of our
alliances with leading Robotic Process Automation (RPA)
solution providers and niche AI players, powered by our
Strategy
Strategy
best-in-class solutions, IPs and frameworks. 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 2022, we won a total contract
value of over US$ 9.5 billion in large deals, continuing
to demonstrate 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 have 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. Lex, our in-house-developed,
anytime-anywhere-learning platform, offers over
13,700 courses curated for easy consumption on mobile
devices with advanced telemetry, gamification and
certification features. Over 2,99,000 of our employees use
Lex and are spending approximately 2.3 million training
days compared to 1.9 million in the last fiscal with close to
45 minutes per day on average for learning activities.
Expand localization
With the objective of creating differentiated talent pools
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, nearshore 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 2022, we recruited over 14,805 employees locally
in our markets, of which 3,650 were fresh graduates.
This initiative also significantly de-risks our operations from
regulatory changes related to immigration policies.
Looking ahead, and to continue staying relevant to the
emerging needs of our clients, our strategic areas of focus
for the next few years will be to further:
• Scale our cloud capabilities, especially around cloud
advisory, data on cloud, cloud security, SaaS, PaaS, IaaS
and private cloud;
• Expand capabilities in key digital technology areas
such as AI, product engineering, cybersecurity and
human experience;
• Strengthen our employee value proposition for the
newer contexts of work and workplace;
• Run our operations in a cost-effective and agile manner,
including increasing the levels of automation in our
service delivery;
• Deliver on our ESG commitments, while at the
same time enabling our clients to realize their
sustainability goals.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-223637Strategy reviewBRSRFinancial statementsApproaching value creationIntroduction Delivering valueGovernanceStatutory reports Business highlights
Differentiated cloud services and large deal momentum drive Infosys’ highest annual
growth in a decade. Our ESG Vision 2030 and ambitions continue to drive value for
all our stakeholders.
Revenues (in ` crore)
1,21,641
21.1% growth Y-o-Y
19.7% CC growth Y-o-Y
Free cash flows (in ` crore) (1)
22,803
3.6% growth Y-o-Y
FCF conversion at 103%
of net profit
Total shareholder return
41.6%
Generated higher returns
than market
Operating margin
23.0%
Robust operating margin
Digital revenues
(as a % of total revenue)
57.0%
41.2% CC growth Y-o-Y (basis US$)
Consolidated cash and investments
(in ` crore) (2)
37,419
Continue to maintain strong
liquidity position
Basic earnings per share
(par value of `5 each)
52.52
15.2% growth Y-o-Y
Return on equity
29.1%
Improved by 1.7%
over the last fiscal
Dividend per share (in `)
31.0
14.8% growth Y-o-Y
Large deal TCV
(Total contract value in US$ billion)
9.5
Sustained momentum in
large deal wins
Number of US$ 100 million+ clients
Women employees
38
Increase of 6 clients Y-o-Y
39.6%
Steady progress towards gender
diversity goals
Digital skilling
Tech for Good
4.8 million
People are a part of our digital
skilling initiatives
80 million+
People empowered through our Tech for Good solutions in e-governance,
education and healthcare
Introduction
Approaching
value creation
Delivering
value
Governance
Statutory
reports
Business highlights
Carbon neutrality
Fresh college graduates hired
Carbon offset programs
Carbon neutral
for 3 years
in a row
Scope 1, 2 and 3 emissions
84,782
Globally
1,84,000
Rural families continue to benefit
from our carbon offset programs
Note:
(1)
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.
(2) Comprise cash and cash equivalents, current and non-current investments excluding investments in unquoted equity and preference shares, compulsorily
convertible debentures and others
Key trends
In ` crore, except per equity share data
FY 2022
FY 2021
FY 2020
FY 2019
FY 2018
Revenues (1)
Net profit (1)(2)
Basic earnings per share (in `) (1)
Market capitalization
1,21,641
1,00,472
22,110
52.52
19,351
45.61
90,791
16,594
38.97
82,675
15,404
35.44
70,522
16,029
35.53
8,02,162
5,82,880
2,73,214
3,24,448
2,47,198
In US$ million, except per equity share data
FY 2022
FY 2021
FY 2020
FY 2019
FY 2018
Revenues (1)
Net profit (1)(2)
Basic earnings per share (in US$) (1)
16,311
13,561
12,780
11,799
10,939
2,963
0.70
2,613
0.62
2,331
0.55
2,199
0.51
2,486
0.55
Market capitalization
104,706
79,760
34,966
47,614
19,493
Notes:
(1) Based on IFRS consolidated financial statements
(2) Attributable to owners of the Company
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-223839Strategy reviewBRSRFinancial statements
DELIVERING VALUE
Investors
We constantly endeavor to fulfill the expectations of our
investors through responsible business decisions and
governance. Integrity and transparency are top priorities
in our relationship with our investors.
Shareholder value creation
We are privileged to share a strong relationship with
investors based on a deep understanding of their
expectations and our commitment to creating value
for them. Infosys has been delivering industry-leading
revenue growth through prudent financial management
and sound corporate governance – resulting in share
value appreciation, leading to sustained value creation
for investors. We maintain transparency in our disclosures
and frequent communication with investors through
channels such as quarterly post-result calls, analyst meets,
Annual General Meeting, and regular one-to-one and
group interactions.
Infosys share price versus the S&P BSE Sensex
140
120
100
80
0
1
2
-
r
p
A
1
2
-
y
a
M
1
2
-
n
u
J
1
2
-
l
u
J
1
2
-
g
u
A
1
2
-
p
e
S
1
2
-
t
c
O
1
2
-
v
o
N
1
2
-
c
e
D
2
2
-
n
a
J
2
2
-
b
e
F
2
2
-
r
a
M
Infosys
BSE Sensex
Delivering value through share value
appreciation
At Infosys, we have been creating sustained value for our
investors by outperforming the markets consistently.
Delivering value through business strategy
Our market-oriented four-pronged strategy enables
us to invest in expanding our global digital footprint.
This helps Infosys to be recognized as a partner of
choice for digital transformation and also increases our
potential to attract larger total contract value (TCV)
deals and clients. This enhances our ability to generate
industry-leading growth and profitability, thus generating
shareholder value.
Delivering value through ESG Vision 2030
Being environmentally-conscious in operations – such
as through energy-efficient green buildings and data
centers – helps reduce operating costs. Also, being
socially responsible (through the initiatives of the Infosys
Foundation), and through ethical governance, we strive to
create value for all stakeholder groups.
Distribution of value created through Capital
Allocation Policy
During the five-year period of fiscal 2020-24, Infosys
expects to return approximately 85% of the free cash
flows generated through a combination of semi-annual
dividends and / or share buyback and / or special
dividends, subject to applicable laws and requisite
approvals, if any.
Details are available here
Investors
Investors
Managing financial capital
Infosys has a high cash-generating business with access
to capital markets across the world. Our strong credit
rating allows us to raise debt at competitive rates in the
future, if needed. The primary source of funds is cash
from operations and income from short and long-term
investments, among others.
Our primary sources of liquidity are cash and cash
equivalents and the cash flow generated from our
operations. We continue to remain debt-free, and we
maintain adequate cash to meet our operational and
strategic requirements and unforeseen events while
also earning sufficient returns.
Our consolidated cash and investments include deposits in
banks, investments in liquid mutual funds, fixed maturity
plan securities, commercial paper, quoted bonds issued
by government and semi-government organizations,
non-convertible debentures and CDs or certificates of
deposits – all such instruments issued by eligible financial
institutions with high credit ratings.
Details of these investments are available in the Financial Statements
on page 255
We also build financial assets and create financial value
by investing in the startup ecosystem. These investments
enable us to access innovation, which together with our
services and solutions, deliver benefits to our clients. Most
often, our investments comprise minority equity positions
in startup organizations and / or venture capital funds.
Rating agency
Moody’s
Standard & Poor’s
Dun & Bradstreet
CRISIL
Key trends
Revenue growth (in %)
Rating
Baa1
A
5A1
AAA
Outlook
Stable
Stable
Condition: Strong
Stable
Dividend per share (in `)
Basic earnings per share (in `)
21.1
9.8
10.7
31.0
27.0
17.5
45.61
38.97
52.52
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
Return on equity (in %)
Free cash flows (in ` crore)
Market capitalization (in ` crore)
25.8
27.4
29.1
22,020
22,803
15,250
8,02,162
5,82,880
2,73,214
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-224243Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Clients
As businesses across the world pivot to next-generation
technologies for enhanced cost efficiencies, agility in
addressing their customers’ needs and resilience-building,
we at Infosys help them navigate their next to evolve their
organizations into Live Enterprises.
We also work with our clients to develop joint
go-to-market strategies that enhance the value of their
businesses. Our localization strategy has seen us transition
from a hub-and-spoke talent model to hire locally and
harness the advantages of differentiated talent pools
globally, resulting in enhanced client servicing.
Key highlights
Active clients
New clients added (gross)
1,626
1,741
1,411
475
451
376
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
Fortune 500 clients
US$ 100-million clients
180
189
184
28
32
38
2019-20
2020-21
2021-22
2019-20
2020-21
2021-22
Our digital narrative is resonating well and clients’
willingness to partner with Infosys has gained momentum
over the years. Our clients are also happy with their
experience on our cloud services. This reflects in us
achieving ~57% digital revenues in fiscal 2022 growing at
41.2% in constant currency. Our digital revenues crossed
US$ 10 billion annualized on a run-rate basis. Within the
digital space, cloud is growing faster. With Infosys Cobalt™,
our cloud capabilities have seen significant traction.
Climate change solutions
We have transformed our campuses into living labs for
clean technology over the past decade, leveraging our
technology expertise. With the establishment of the
Sustainability Practice Unit in 2020, we now offer our clean
technology solutions to our customers, enabling their
carbon neutrality journeys.
Read more in the Infosys ESG Report 2021-22
Clients
Clients
Creating value for our customers
Digital transformation
We help our customers navigate their digital
transformation journeys through our suite of services
and solutions.
Details of our key customer services and solutions are available here
For our clients, digital transformation is about enabling
the business to continuously develop agile and effective
responses to the emerging challenges and opportunities.
Their businesses have a transformation plan that is owned
by the top management and implemented by leaders and
their respective verticals. Although they are equipped with
what's needed to drive value from the execution, many
of them find it difficult to tackle the most important part
of the transformation – how to put together the people,
processes and tools for it and deliver sustainable results.
Our digital architecture drives outcomes for enterprises
across five areas – Experience, Insight, Innovate, Accelerate
and Assure. Our experience of helping many clients
through their digital transformation journeys has shown us
that a Live Enterprise is one that is continuously investing
in reinventing its operating model while reimagining
customer transformations. Our clients count on our
operating models to navigate their next.
Digital Operating Models - Navigate Your Next | Infosys
We use our native digital innovation expertise to partner
with our clients to develop future-ready solutions. Further,
the Infosys Virtual Living Labs enables clients to experience
emerging technologies to inspire innovation and incubate
new possibilities. The application of our innovation
capabilities to create value for stakeholders is further
elaborated in the section on ‘Creating value through
innovation.’
Client satisfaction
Our latest annual client survey indicates that most of
our clients are delighted with Infosys, sustaining the
positive feedback gained over the years. We have also
been appreciated for our resilience, agility, client-centric
approach, excellence in execution, quality of deliverables,
base delivery, tools and methods.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-224445Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Employees
At Infosys, careers don't stand still and talent transformation
is an important focus area. It begins with sensing employee
needs and responding with a value proposition that delivers
meaning, purpose and value for them. It builds synergy
between how we look to differentiate ourselves as a Company
and deliver on the expectations of our employees.
We have a three-pronged strategy to deliver value to
our employees:
•
Inspire our people with meaningful work and passionate
teams, enabling them to find purpose and make an
indelible impact.
• Ensure that our people, are continuously learning
and progressing in their careers, and shaping our
collective future.
• Create opportunities for every employee to navigate
further, powered by our culture and partnered by other
Infoscions with shared aspirations.
Total no. of employees
2,42,371
2,59,619
3,14,015
2019-20
2020-21
2021-22
% of women employees
37.8
38.6
39.6
2019-20
2020-21
2021-22
Voluntary attrition*
27.7%
17.4%
10.9%
2019-20
2020-21
2021-22
*LTM IT services
Enabling and rewarding managers
We have designed the Infosys manager enablement
framework to equip our leaders with the skills and
capabilities to help their teams build technical, business
and people skills along with a digital mindset to accelerate
their development journeys. Managers are encouraged
to adhere to a behavior code that has seven principles
to ensure efficient management of their teams. Infosys
recognizes those managers who are exemplars in living the
Manager Code.
Be the voice of the team
Connect. Care. Recognize
Be the navigator – Foster grassroots innovation, collaboration,
and deliver client delight
Be a lifelong learner
and teacher
Live the Infosys Code of
Conduct and Ethics, C-LIFE
Leave no one out
Collaborate to win
Employee Engagement Framework
Our Employee Engagement Framework – 5C (Connect,
Collaborate, Celebrate, Care, Culture) – helps us to
create best-in-class employee experiences and supports
our people to stay motivated to deliver their best at all
times. We have created common engagement platforms
such as QuickStart that allow us to quickly onboard
new employees.
Connect helps us to catch up with employees in formal
and informal setups and facilitate coaching and mentoring.
We are promoting Collaboration among teams through
Power Teams with programs customized for projects as
the nucleus, promoting knowledge-sharing sessions,
ideathons, hackathons and coaching by managers.
We are Celebrating our people's success with RISE, an
exclusive recognition platform integrated with our digital
marketplace InfyGold+ and InfyAdvantage for employees.
We have prioritized employee well-being and Care, with
a renewed approach to our flagship Health Assessment &
Lifestyle Enrichment (HALE) program. Finally, our Culture
is driven by our strongly rooted values C-LIFE, leaders and
managers who embody these values and our people who
we call Infoscions, who nurture life at Infosys with vibrant
employee resource groups, passionate hobby clubs,
culture cafes, peer counselling groups to be the navigators
of the future.
Employees
Employees
Careers that never stand still
We have programs, partnerships and initiatives that give
our employees opportunities to learn continuously and
be rewarded with faster growth. With digital technologies
changing every day and skills needing constant update,
we have made it easy for our people to reskill, upskill, and
build new digital muscle. At Infosys, professional growth
runs in parallel with career growth.
Infosys Career Gambit is a comprehensive career initiative
designed to help employees gain new skills, seek guidance,
gauge progress, define career goals, and assist them to get
future ready. The features of Career Gambit are:
Get access to world-class learning, personalized learning
paths and boost performance with digital readiness.
Set themselves up to win, acquiring SKILL TAGS and
setting sights on specialized careers.
Go forward in their career through multiple pathways into
new and exciting technology spaces.
Employee wellness and safety
The Infosys employee well-being journey is two decades
strong. We continuously strive towards enhancing the
well-being of our employees through our award-winning
HALE (Health Assessment and Lifestyle Enrichment)
program, that is aimed at increased awareness, reduced
stress levels, safe work environment and improved
productivity levels, resulting in good health and
well-being.
The four pillars of HALE are
PHYSICAL
WELLNESS
EMOTIONAL
WELLNESS
SOCIAL
WELLNESS
SAFETY
Employee experience map: Digital first
We have transformed ourselves into a Live Enterprise, offering digital-first personalized experience for our employees across
life-cycle events.
ATTRACT
Talent management system
Candidate experience
Automated workflows
Social media listening
Hackathon
InfyTQ and Infosys Springboard
ONBOARDING
Launchpad, e-joining and more
E-docket digital records
QuickStart new joiner experience
Cohorts – Mentoring and communities
Surveys and feedback
CAREERS AND REWARDS
FLUID – Digital marketplace
Skill Tags – Digital career maps and skills
Accelerate – Gig work opportunities
Step Up – Internal movements and skilling
lnfyGold+ – Online recognition tools
Stripes – Centralized reward management
DEVELOPMENT
Lex – Anytime-anywhere learning
CARA – e-coaching
Zoiee – Digital learning assistant
Atlas – Learning maps
Analytics and insights
ENGAGEMENT
lnfyMe – Employee experience app
Power Teams – Collaboration forums
iEngage – Communication framework
RISE – Celebration and rewards
HALE – Well-being and care
Pulse – Employee feedback and culture sensing
OFFBOARDING
Offboarding system
Alumni portal and self-service
PERFORMANCE MANAGEMENT
iCount – Continuous feedback
Smart goals and evaluations
Mcode – Manager enablement
Datavillage – Analytics and insights
Read more in the Infosys ESG Report 2021-22
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-224647Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Suppliers
As a signatory to the United Nations Global Compact,
Infosys leverages the UNGC principles covering human
rights, labor, environment, and anti-corruption as
foundational principles for building and improving its
sustainable supply chain practices.
The Company is committed to providing opportunities
to diverse businesses and integrating the UNGC
principles into our supply chain and towards building
a positive long-term environmental and social impact.
Our Responsible Supply Chain Policy categorizes
our suppliers in three segments – people, services
and products.
All our suppliers are required to sign our Supplier Code of
Conduct. Our agreement with vendors includes a mandate
to comply with local laws and regulations. We expect
our suppliers to support and respect internationally
proclaimed human rights guidelines. A strong governance
process and independent checks support regular quarterly
audit of contract staff, in accordance with various labor
laws. Grievances are addressed through appropriate
mechanisms available to contract staff to safeguard their
interests. 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 and issues.
In fiscal 2022, we launched a responsible supply chain
assessment through an external, independent consulting
partner. This assessment will cover our top 100 suppliers
to baseline their ESG performance. The assessments are
under way and cover governance, ethics and compliance
with law, fair business practices, labor practices and human
rights, health and safety, and environment.
Ethics &
compliance
with law
Labor
practices
& human
rights
Environment
Governance
Fair business
practices
Health and
safety
The assessment will give the supplier an ESG scorecard
with scores on each of the assessment parameters, while
highlighting strengths and areas for improvement. Post
the assessment, we will also engage with the suppliers
to identify specific initiatives that will help improve their
scores. Based on the overall learning from the program, we
will create a supplier education and engagement initiative
to help our smaller suppliers build competencies.
Key highlights
MSME partners
569
Contract staff
25,470
Local suppliers
1,498
Government and
regulators
Government and regulators
The roles of regulators and governments are inextricably
intertwined with the creation of sustained value for an
organization’s stakeholders. Our engagement with the
public sector is underlined by transparency and aims to
achieve different purposes. For instance, enabling the
implementation of Tech for Good programs on scale, or
collaborating to seek suitable policies for the industry, or
executing community development projects in rural India.
We also partner with government departments to help
deliver services to the citizens of India, the US and Canada,
Australia and New Zealand, the UK and Europe.
Approach to government, policy and
community engagements
Infosys’ approach to achieving our government, policy and
community objectives focuses on engaging ecosystems
at the national, regional and local levels. To this end,
across each of the Company’s key markets – including,
but not limited to the US, Canada, the UK, Europe,
Australia and India – Infosys focuses on developing and
maintaining partnerships with relevant government
officials, business organizations, technology industry
associations, educational institutions, and community
organizations for the purpose of developing mutually
beneficial partnerships.
These partnerships allow Infosys, often along with our
ecosystem partners, to:
• Mitigate legislative and regulatory risk
Key highlights
• Successful collaboration with national governments
and ecosystem partners to address employee travel
disruption issues and global business continuity
concerns immediately after the COVID-19 outbreak
•
In-person endorsements of Infosys’ contribution to
local technology hiring, skilling and related capital
investments by government leaders at the national
(the US Vice President and Secretary of Labor, the
British and Australian prime ministers, the Costa Rican
president), regional (state / provincial leaders across the
US, Germany, Romania, Australia, Canada, Mexico and
others) and local levels
• Launch of the “Government Tech Insider” before
the UK Parliament, a document to guide UK policy
development on the regulation of emerging
technologies (in partnership with the Infosys
Knowledge Institute)
• Appointment of Infosys to the UK Trade Minister’s
Technology and Telecoms Trade Advisory Group.
Partnering with the Thurgood Marshall College Fund
in the US to further the development of technology
skills and Science, Technology, Engineering, Mathematics
education at Historically Black Colleges and Universities
(HBCUs)
• Active contribution to the standards committees of BIS,
ISO and IEEE in development of data privacy standards
• Maximize the impact of Infosys' investments local to
• Advocating for immigration legislation and regulation
certain geographies
• Deepen Infosys’ thought leadership on the
development of key public policies
• Enhance the recognition of Infosys as a technology and
employer ‘partner of choice’
in the best interests of the mobility of IT services
industry workers into key markets such as the US, UK
and Australia
Approach to government services
Public sector organizations worldwide face numerous
challenges ranging from having to satisfy complex mission
requirements, meeting citizens’ high expectations of public
services, operating in a fast-evolving technology landscape
to working under ever-increasing monetary pressures.
Infosys supports public sector organizations to deal with
these challenges and deliver enhanced outcomes.
Details of our global projects are available on Public Sector IT Services -
Overview | Infosys
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-224849Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Communities
Infosys' work with communities began with the
establishment of Infosys Foundation in 1996, much before
the CSR Rules, 2014, came into place. Over the years, our
work with communities have expanded in geography,
scale and areas of interventions.
Infosys Foundation
The Infosys Foundation works to create deep societal
impact in India. Our CSR initiatives, delivered through the
Foundation, focus on assistance with education, improving
healthcare, addressing malnutrition and hunger, destitute
care and rehabilitation, rural development, environmental
sustainability and protection of national and historical
heritage and promotion of art and culture.
A few of the significant projects this year included:
Village development through water projects and more
When around 80 large water bodies, which were the main
source of irrigation to their farms, dried up, the debt-ridden
farmers of Jhabua and Alirajpur districts of Madhya
Pradesh had no choice but to migrate to cities as daily
wage laborers.
organization that will help bring more transparency and
comprehensiveness to various aspects of the law and justice
system. The initiatives include an AI-based legal assistant
tool to help the general public effectively navigate consumer
grievance redressal / dispute resolution, simulation models,
a curated volume on technology and analytics for law and
justice, and a predictive model to estimate the duration of
cheque bounce cases.
A shelter of comfort when illness makes you weak
Over the years, the Foundation has helped to build several
dharmashalas (fully-equipped shelters) for hospitals across
the country.
Since 2007, Shivganga Samagra Gramvikas Parishad (SSGP)
has been working in the villages of these districts, trying
to bring about sustainable development. The Foundation
has been partnering SSGP since 2010. Last year, it renewed
its commitment to the project by donating funds for
empowering more than 12,000 young individuals, building
80 water reservoirs, training 256 people in making bamboo
handicrafts and 461 farmers in organic farming, apart from
afforestation and infrastructure development.
Using data and technology to improve justice delivery
In its endeavor to support initiatives related to research
and higher education in the country, the Foundation
collaborated with the DAKSH Centre of Excellence for Law
and Technology at the Indian Institute of Technology Delhi.
The Foundation’s grant supports multiple initiatives of the
This year, the Foundation completed the construction of two
dharmashalas – the 800-bed Infosys Foundation Vishram
Sadan at the All India Institute of Medical Sciences (AIIMS),
Jhajjar, Haryana and the 412-bed Infosys Foundation Asha
Nivas at the Advanced Centre for Treatment, Research and
Education in Cancer (ACTREC) campus of Tata Memorial
Centre in Navi Mumbai. These shelters offer affordable
accommodation for cancer patients and their caregivers,
who travel from far-off towns and villages for treatment and
have to stay for longer durations to complete the course
of treatment.
Read more on the Infosys Foundation website
Infosys Foundation USA
The Infosys Foundation USA was founded in 2008 to
increase access to computer science and maker education
for K-12 students and educators across the US, particularly
in under-resourced communities. Through its partnerships
with non-profits and signature programs, the Foundation
continues to build upon the 1 million+ educators and
23 million+ students it has reached since its inception.
Read more on the Infosys Foundation USA website
Communities
Communities
Infosys Science Foundation
The Infosys Prize endeavors to elevate the prestige of
science and research in India and inspire young Indians to
choose a vocation in research. The award is given annually
to honor outstanding achievements of contemporary
researchers and scientists across six categories:
Engineering and Computer Science, Humanities,
Life Sciences, Mathematical Sciences, Physical Science
and Social Sciences, each carrying a prize of a gold medal,
a citation and a purse of US$ 100,000 (or its equivalent in
Indian Rupees).
Read more on the Infosys Science Foundation website
Extending our ESG impact to the community
Our ambition to serve the development of people by
shaping a future with meaningful opportunities for all
sums up our work with the community. Technology serves
as a catalyst in community development as it empowers
people with the capacity to participate in economic
progress. In turn, not only do they become architects of
a better life for themselves and their families, but they
also lay the foundations of socio-economic progress for
generations to come.
At Infosys, we leverage the power of digital solutions
to address critical socio-economic issues and enable
underserved communities in their journeys to improved
lives. We focus our efforts on building capacity with digital
skills, employing technology to do good and energizing
communities around us.
Building diverse talent pools
In a highly fluidic technology and business environment,
clients’ businesses are also adapting rapidly and demand
diverse skills to help them be future-ready. We hire
competitive and motivated individuals from diverse
non-technological backgrounds and equip them with
requisite skills to create more diverse products and
solutions for our clients.
In line with our core philosophy of hiring for learnability
and skilling through training, we extended our hiring
into an alternative talent pool beyond the traditional
STEM graduates. We created entry-level pathways to
attract students in the community college system in
the US to attract them to IT. Through a combination of
apprenticeships and internal training, we have been able to
hire over 700 people from this pool.
Key highlights
Tech for Good
80 mn+
lives enabled
CSR
US$ 60 mn
contributed
Employees
92%
are local hires
Digital talent at scale
4.8 mn+
people enabled
Infosys Prize
80 scientists
awarded till date
Carbon neutrality
3rd
consecutive year
Enabling digital talent at scale
Our initiatives to enable digital talent at scale include
digitally skilling our employees, our clients’ employees,
students, teachers and the community. Infosys
Springboard, now rolled out globally, continues to digitally
empower millions worldwide.
Tech for Good
Our Tech for Good initiative targets contributing value in
three segments – e-governance, healthcare and education.
We implement large-scale, multi-year programs in
e-governance in India, Australia and the US with the aim of
creating positive experiences for citizens. We empower 80
million+ people each year through our interventions.
Energizing local communities
Localization is integral to our social strategy too.
We believe that proximity of our talent to clients enhances
agility in our services and improves employee well-being.
We have been localizing our workforce in various
geographies and will continue to invest in these efforts.
Our innovation centers support us to transition from a
hub-and-spoke model to a network talent model and
develop local talent pools to deliver service excellence.
We have created more than 25,000 American jobs
since 2017.
Read more in the Infosys ESG Report 2021-22
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-225051Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Environment
We believe that the environment in which we operate is both
an investor and a beneficiary of Infosys. We are mindful of the
fact that we are tapping into the elements of the environment
for our operations and we are consciously creating strategies
ad building solutions that will benefit it in the short and
long term.
Climate change
Climate scientists have been warning us about the deepening
climate change crisis for many decades now. However,
corporate climate action was nascent a decade ago (2008) when
Infosys started its climate action journey. Today, the world is in
panic mode on climate change. The Glasgow Climate Change
Conference (COP 26) witnessed climate anxiety. Climate change
is causing the loss of life and property as well as hampering
economic growth. Climate impacts are expected to deepen
unless we keep global warming to well below 2° C. The Paris
Agreement and the global Net Zero movement are aiming for
that. Many nations and global corporations have pledged to be
net zero in the 2030-2070 timeframe.
Climate commitments
• As part of our ESG Vision 2030, we have committed to
maintaining carbon neutrality across Scope 1,2 and 3
emissions every year.
• Our Climate Pledge in partnership with Amazon and
Global Optimism is to become net zero by 2040.
Climate action strategy
Climate action has been a key ESG focus area for Infosys since
2008. In 2011, we committed to carbon neutrality across all
three scopes of emissions. In fiscal 2020, we turned carbon
neutral. We have continued to be carbon neutral for three
years in a row. Today, climate change considerations are
incorporated into everything that we do, from mergers and
acquisitions to leasing new offices, and engagement with
our stakeholders.
Our climate action program includes our participation
in RE100, an internal carbon price, a commitment to
science-based targets initiatives (SBTi) in alignment with the
Paris Agreement’s goal of keeping temperature rise under 2˚C,
and the Climate Pledge.
In fiscal 2020, when we attained carbon neutrality, we
announced our ESG Vision 2030, with more ambitious climate
action goals. We are committed to continuing our carbon
neutrality, reducing our Scope 1+2 emissions by 75% over
business as usual, reducing our Scope 3 emissions by 30%
over the 2020 baseline, and engaging with clients on climate
action solutions.
Energy efficiency
Carbon offset
Climate Action
Strategy
Renewable
energy
Responsible energy sourcing
Emission intensity
Scope 1+2
(tCO2e / US$ million revenue)
Scope 3*
(tCO2e / US$ million revenue)
10.91
11.85
5.70
3.72
1.83
1.99
FY 2020
FY 2021
FY 2022
FY 2020
FY 2021
FY 2022
*ESG Specific intensity
Million sq. ft. of space certified to the highest
standards of green building certification
25
26
28.61
FY 2020
FY 2021
FY 2022
Offset program beneficiaries (No. of families)
1,84,000
1,02,000
1,19,000
FY 2020
FY 2021
FY 2022
Read more in the Infosys ESG Report 2021-22
Environment
Environment
Engaging clients on climate actions
Over the past decade, we have leveraged technology to
build and run some of the most efficient buildings and
campuses globally that conserve energy, save water and
treat waste responsibly. Our campuses are living labs for
clean technology. Leveraging our expertise, we set up the
Sustainability Practice Unit in 2020 with a mission to serve
the preservation of our planet by shaping and sharing
technology solutions. The practice works collaboratively
with business units to scale technology-led solutions to
tackle climate change.
In February 2022, we launched our book,
Practical Sustainability, a practical guide to unlocking
the US$ 2.5-trillion business boom.
Practical Sustainability: Circular Commerce,
Smarter Spaces, and Happier Humans
The book provides a practical approach to creating
and connecting smart spaces, with significant results
that can be replicated by others, whether a global
enterprise, small company, or government entity.
Infosys sustainability offerings
ESG-as-a-Service
Bundle, execute and manage a portfolio of
ESG-related programs.
Sustainability advisory
Create a roadmap of sustainability initiatives to transform
the enterprise.
Smart spaces
Optimize the efficiency and effectiveness of the
built environment.
Energy transition
Shift to renewables and distributed energy resources.
Decarbonization
Reduce the greenhouse gases emissions that are produced
by, or for, the enterprise.
Circular products
Optimize production to move towards a circular business
model and eliminate waste.
ESG data and analytics
Gather, rationalize, analyze and report current-state ESG
metrics, to enable action.
ESG finance
Enable greater clarity and improved decisions based
on ESG data.
Green IT
Drive and influence carbon footprint reduction
& Sustainable outcomes across applications
and infrastructures
Read more in the Infosys ESG Report 2021-22
Energy-as-a-Service
Infosys and bp recently announced a partnership
to co-develop a digital platform that can collect
data from multiple energy assets and use artificial
intelligence to optimize the energy supply and
demand for power, heat, cooling and electric-vehicle
charging. The key objective is to provide 100%
clean, cost-effective, optimum and reliable energy
(electricity and green fuel) with access to monitor
and manage the consumption pattern while creating
smart and energy-efficient infrastructure. The service
is focused on energy efficiency, embedded generation,
sustainable sourcing and flexibility and optimization.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-225253Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Awards and recognition
Business and Sustainability
1.
2.
3.
4.
5.
6.
7.
8.
9.
Infosys topped CRISIL’s ranking as the most
Environmental, Social, and Governance (ESG)
focused IT Company in India
Infosys won top spot in Institutional Investor
2021 All Asia Executive Team Ranking (IT Services
& Software)
Ranked #3 by Brand Finance in their top 10 most
valuable Indian brands listing
Won four Stevie® Awards at the 19th Annual
American Business Awards. Also won a
Silver Stevie® Award at the 2021 Asia Pacific
Stevie Awards
Won six awards in the Engineering Service
Providers (ESP) category at the NASSCOM ER&D
Showcase 2021. Also won ER&D Organization of
the year award for 2021
BluePrism recognized Infosys with Global
Client Business Impact Partner of the Year
Telecommunications and Regional Client
Business Impact Telecommunications – APAC
Awards at the BluePrism Partner Excellence
Awards 2021
10. Working Mother & AVTAR
• Recognized as Exemplars of Inclusion
(Most Inclusive Companies Index 2021)
• Recognized among Top 10 Best Company for
Women in India in 2021
11.
Accredited as a Disability Confident Recruiter
by the Australian Network on Disability (AND)
for 2020-21
12.
Recognized as one of the 2022 World’s Most
Ethical Companies by Ethisphere
13.
14.
15.
Recognized as the fastest-growing IT
services brand by Brand Finance, the world’s
leading brand valuation firm, in its Global 500,
2022 report
Ranked #1 among top 100 listed companies in
India for receiving the highest score on ESG by
Stakeholders Empowerment Services (SES)
Received LEED Platinum certification from
US Green Building Council for four buildings,
situated in Indianapolis, Bengaluru, Mysuru
and Thiruvananthapuram.
Winner - Green Apple Award for Promoting
Environmental Best Practice around the World -
November 2021
16.
Awarded the Best Environmental Excellence
Award at the 13th Annual Global CSR Awards &
Summit 2021
Won the 2021 Microsoft US Partner Award
for demonstrating excellence in Azure
AI capabilities
Won Platinum Award at The Asset ESG
Corporate Awards 2021, and won awards for Best
Initiative in Diversity and Inclusion and for
the Best Investor Relations Team
17.
Included in the Leadership Quadrant in CDP for
the 6th year in a row
Awards and
recognition
Awards and recognition
Human Resources
1.
2.
3.
4.
5.
6.
7.
8.
Infosys recognized as one of India’s Best
Employers among Nation-Builders 2021
Positioned as the fourth most attractive
employer in India, according to the Randstad
Employer Brand Research (REBR), 2021
Won four Stevie® Awards for great
employers 2021
Infosys recognized as a Top Employer in the
2021 India Workplace Equality Index (IWEI), won
Silver for LGBTQ+ Inclusion
Infosys recognized among Top 50 India’s Best
Workplace for Women 2021 by Great Place To
Work in the large companies’ category
Infosys recognized as a Global Top Employer®
2022 in 22 Countries, Ranked among
Top 3 Employers in Asia Pacific, Middle East,
and North America and ranked among
Top Employers in Europe for Best-in-Class
People Practices; Ranked #1 in India again
Received Brandon Hall Group’s Organizational
Excellence Certification for demonstrating
best-in-class talent acquisition strategy and
human capital management practices
Certified as a Great Place to Work® for
excellence in its employment practices in
Canada for 2022
Digital Services and Technology
Innovation
1.
2.
3.
4.
5.
6.
7.
Infosys was recognized as one of the top three
service providers in the Nordics in the Whitelane
Research and PA Consulting IT Sourcing
Study 2021
Recognized by HPE as the Global System
Integrator of the Year 2021 and Asia Pacific
System Integrator of the Year 2021
EdgeVerve won two Globee awards for ‘Most
Innovative Software of The Year’ for AssistEdge
and ‘Effective Leadership During COVID’
IBS Sales League Table 2021 recognized Infosys
Finacle as the best-selling solution across
six categories
EdgeVerve was named Best Artificial
Intelligence Software Company of 2021 by
Digital.com
Infosys was ranked as a leader in Constellation's
Public Cloud Transformation Services: Global,
Customer Experience Operation Services: Global,
and Campaign to Commerce: Best of Breed
Commerce Platforms
Infosys was the overall winner for delivery
excellence for one of the largest external
CSAT surveys sponsored by ISG - Star of
Excellence Awards
8.
Positioned as a leader in PAC RADAR SAP
Services in Germany 2021
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-225455Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports Awards and recognition
Awards and recognition
Awards and
recognition
9.
Infosys Finacle was a winner at the Finnovex
Awards Qatar 2022 under the ‘Excellence
in Payments’ category for its Finacle
Payments Suite
10. Ranked as a leader in Gartner Magic
Quadrant for
and in Everest PEAK Matrix® 2022 in
•
Insurance Platform IT Services
• Platform IT Services in BFS
• Finastra IT Services
• Enterprise Blockchain Services
• Oracle Cloud Application Services, Worldwide
• Quality Assurance (QA) Services
•
IT Services for Communications Service
Providers, Worldwide
• Data and Analytics Service Providers
• Global Retail Core Banking for Infosys Finacle
Core Banking Solution
11.
Infosys was rated a leader in Avasant’s
RadarView™ 2021 reports in:
• Applied AI and Advanced Analytics Services
• Digital Talent Capability
•
Intelligent IT Ops
and in RadarView™ 2022 reports in
• Blockchain Services
• Healthcare Payor Digital Services
• Multisourcing Service Integration
12.
Positioned as a leader in Everest PEAK
Matrix® Global Assessment 2021 in the
following categories:
• Application and Digital Services in Banking
• Analytics (D&A) Services
• Envisioning the Connected Future: 5G
Engineering Services
• Microsoft Dynamics 365 Services
•
IT Service Provider of the Year (Ranked #2)
• Cloud Services - North America
• Cloud Services – Europe
• Digital Product Engineering Services
• Oracle Cloud Applications (OCA) Services
• Advanced Analytics and Insights
(AA&I) Services
•
Infosys Finacle positioned as a leader in the
Consumer Loan Origination System Products
13.
Ranked as a leader in IDC Marketscape's2021
vendor assessments for the following categories:
• Worldwide Microsoft Implementation Services
• Worldwide Atificial Intelligence Services
• Worldwide Smart Manufacturing
Service Providers
• Asia/Pacific Managed Cloud Services
• Worldwide Life Science R&D ITO Services
• European Smart Manufacturing
Service Providers
• Worldwide B2B Commerce Services for
Industrial Manufacturing
• Worldwide Managed Multicloud Services
• Asia/Pacific Microsoft Dynamics 365
Implementation Services
• Worldwide Oil and Gas Upstream Asset
Management Digital Services
14.
Positioned as a leader in NelsonHall's
NEAT 2021 in the categories:
16.
Infosys was rated as a leader in the following
ISG Provider Lens™ studies in 2021:
• Cognitive and Self-Healing IT Infrastructure
• Salesforce Ecosystem Partners – Leader in
Germany and U.S.
• Quadrant study on “Mainframe Services and
Solutions 2021” – Leader in US
• Cybersecurity Services and Solutions for U.S.
• North America Utilities
• SAP HANA Ecosystem Services in the US and
Germany quadrant reports
•
Internet of Things – Services and Solutions
(rated global leader)
• Next-Gen Private / Hybrid Cloud – Data
Center Services and Solutions for the US
• Network-Software Defined Solutions
and Services for Australia, UK, and
Nordics region
• Next-Gen Application Development and
Maintenance Services in the US
• Public Cloud – Services and Solutions /
Analytics Services for the US, UK, Brazil and
Germany region.
• Banking Digital Services for the US, UK and
Nordics region
• Mainframes Services and Solutions
• Healthcare Digital Services for the US
Management Services
•
Intelligent Automation in Banking
• Blockchain Services
• Wealth and Asset Management
• Digital Manufacturing
• Advanced Digital Workplace Services
• Quality Engineering
and NEAT 2022 in
• Quality Engineering
• Digital Banking Services
15.
Ranked as a leader in HFS Research Top 10 lists
for 2021 in
• Telecom, Media, and Technology (TMT)
Service Providers
• ServiceNow Services
• Supply Chain Service Providers
• Banking and Financial Services Providers
(Ranked #1)
• OneOffice™ Services: Data and Decision
• OneOffice™ Services: Native Automation
• Energy Services
• Enterprise Blockchain Services
• Pega Services
• Digital Associates Services
and for 2022 in
• Energy Transition Services
• Application Modernization Services
• Utilities Services
• Retail and CPG Services
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-225657Strategy reviewDelivering valueBRSRFinancial statementsApproaching value creationIntroduction GovernanceStatutory reports
GOVERNANCE
Approach to governance
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 and performance, and ensure that we gain
and retain the trust of our stakeholders at all times.
Corporate governance is an ethically-driven business
process that is committed to values aimed at enhancing an
organization’s wealth-generating capacity. This is ensured
by taking ethical business decisions and conducting
business with a firm commitment to values, while meeting
stakeholders’ expectations. At Infosys, it is imperative that
our Company affairs are managed in a fair and transparent
manner. This is vital to gain and retain the trust of
our stakeholders.
A legacy of good governance
At Infosys, a strong, independent and diverse Board
ensures effective corporate governance across the
organization. The independent Board committees engage
through the year to deliver best-in-class governance
practices and periodically review the policy framework
to maintain its robustness. The Board and its committees
undergo an annual performance evaluation by an
independent agency.
Infosys participates in many industry-led forums to
share best practices and continues to set benchmarks
in corporate governance. The Company prides itself
on its compliance with global guidelines, standards
and corporate governance codes, ensuring timely and
accurate disclosures in accordance with Indian Accounting
Standards (Ind AS) and International Financial Reporting
Standards (IFRS) requirements.
Our corporate governance is a statement of
the values we stand by as we conduct our
business and engage with our stakeholders.
Our Company has been a leader in adopting
internationally-recognized corporate
governance guidelines and has set the
highest standards in abiding by them.
Kiran Mazumdar-Shaw
Lead Independent Director, Infosys
Recognitions
In 2021-22, for the sixth year in a row, the Company
was recognized as a leader in a corporate governance
study conducted jointly by the BSE Limited, the Finance
Corporation (a member of the World Bank Group) and
Institutional Investors Advisory Services, based on the
G20 / OECD principles.
Infosys was recognized for the second year in a row by
Ethisphere as
The Most Ethical Company 2022
Infosys topped CRISIL rankings on ESG Leadership 2021
Infosys was awarded the Overall ESG Leadership Award
2021 by ESGRisk.ai
Infosys topped the overall Indian ESG ranking as
well as Governance ranking in the 2022 report by the
corporate governance firm, Stakeholders Empowerment
Services (SES).
Approach to
governance
Approach to governance
Some milestones in our corporate
governance journey:
1994
First company to introduce Employee Stock
Ownership Plans (ESOPs) in India
1996
First Indian company to voluntarily adopt
the US's and six other countries’ GAAP reporting
1999
First Indian company to publish quarterly
audited financials
Our corporate governance philosophy is built on the
following norms:
• Corporate governance standards should go beyond the
law and satisfy the spirit of the law, not just the letter of
the law.
• The Board and the Management are the trustees of the
shareholders' capital and not the owners.
• Ensure transparency and maintain a high level
of disclosure.
• Distinguish clearly between personal conveniences and
corporate resources.
• Communicate externally and truthfully about how the
Company is run internally.
First Indian company to be listed on the
NASDAQ stock exchange
• Have a simple and transparent corporate structure
driven solely by business needs.
2005
First Indian company to comply with SOX(1)
2017
First Indian company to facilitate ADR(1)
participation in Indian share buyback
2018
First Indian company to sign a unilateral APA(1)
with US IRS(1)
2019
One of the largest buyback offers through the
open market
2020
Instituted performance-based stock incentives
under the expanded stock ownership program
aligned to Total Shareholder Return
2021
One of the first Indian companies to have
a voluntary independent Board-level ESG
committee to oversee the Company's
ESG priorities
• Comply with the laws of all countries in which
we operate.
Value-creating governance
Strong corporate governance practices help to build an
environment of trust, transparency and accountability
necessary for fostering long-term investment, financial
stability and business integrity, thereby supporting
stronger growth and more inclusive societies.
The Company’s corporate governance philosophy is deeply
rooted in the values and global best practices of corporate
governance. Our values are embedded in the principles
of the Company that are applied across the Company
on a daily basis. These values and principles are also the
guiding source of our Code of Conduct and Ethics which
the whole organization adheres to. As Infoscions, we are all
trustees of the Company’s legacy – its resources, assets and
opportunities, and share an equal responsibility to pass
on a better, stronger Infosys than the one we received.
This includes meeting or exceeding our commitments
to stakeholders, developing the full potential of our
employees, and building Infosys’ reputation to make it the
most respected Company in the world.
(1) ADR: American Depository Receipts; SOX: The Sarbanes–Oxley Act of 2002;
APA: Advance Pricing Agreement; IRS: Internal Revenue Service
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-226061Delivering valueGovernanceBRSRFinancial statementsStrategy reviewApproaching value creationIntroduction Statutory reports Approach to governance
Approach to governance
Approach to
governance
Our corporate governance focuses on the interests of
employees and other stakeholders and their roles in
contributing to the long-term success and performance
of the Company. Our governance framework emphasizes
fairness and transparency based on sound legal,
regulatory and institutional frameworks and ensures a
fair and equitable treatment of shareholders. Promoting
the participation of stakeholders in effective corporate
governance, ensuring timely and accurate disclosures
in all material matters including the financial affairs,
performance, ownership, and governance of the Company
through an active, engaged and accountable Board
endorses our commitment to leadership by example
and excellence.
Corporate governance framework
The key pillars of Infosys’ corporate governance framework are:
OECD framework and Infosys' corporate governance practices
Corporate governance practices at Infosys are guided by the OECD (Organization for Economic Cooperation and
Development) principles as follows:
Rights and equitable treatment
of shareholders
Role of stakeholders
in corporate governance
Disclosures and
transparency
Responsibilities
of the Board
• Quality of shareholder meetings
• Related party transactions
•
Investor grievance policies
• Conflict of interest
• Business responsibility initiatives
• Supplier management
• Employee welfare
•
Investor engagement
• Whistleblower Policy
• Ownership structure
• Financials
• Company filings and quarterly
disclosures
• Risk management
• Audit integrity
• Dividend payouts and policies
• Board as a Trustee
• Board and committee composition
• Training for directors
• Board evaluation
• Director remuneration
• Succession planning
Responsible leadership
Lead by example by ensuring independence of the Board
and effectiveness of the Management
The performance of the Company against these principles during the year was as follows:
Rights and equitable treatment of shareholders
Board as a trustee
Safeguard the shareholder’s capital
as trustee, and not as its owner
Legal compliance
Satisfy both the spirit and the letter of
the law in all our actions and disclosures
Effective corporate governance
Build simple and transparent processes
driven by business needs of all stakeholders
Fairness and excellence
Be objective and ethical, and deliver the best
to earn trust and respect from our stakeholders
Integrity and
transparency &
Relationship
with stakeholders
Ensure transparency and maintain a high level of integrity,
driven by the dictum — when in doubt, disclose.
Communicate frequently with stakeholders, including
clients, investors, shareholders and stock markets
1
4
2
3
Quality of shareholder meetings
•
• At the AGM held during the year, shareholders across the world participated.
All shareholders are provided with an opportunity to participate and raise questions in the shareholders’ meeting.
Related party transactions
• All related party transactions are identified and approved by the audit committee and the Board, wherever required.
• Relevant disclosures were made to the stock exchanges on a timely basis.
Investor grievance policies
The Company has a comprehensive policy for redressal of investor grievances. The Company assigns specific emphasis to
resolving investor grievances fairly and expeditiously. Details are available in the Shareholder information section of this
Integrated Annual Report.
Conflict of interest
• The provisions on conflict of interest are embedded in our Code of Conduct.
•
In matters which have a potential conflict of interest, the persons concerned abstain from discussion or voting on
the matter.
Role of stakeholders in corporate governance
1
5
2
4
3
Business responsibility initiatives
The Company achieved carbon neutrality in 2020 and launched its ESG Vision 2030 announcing its commitment to shape
and share solutions to serve the development of businesses and communities. Read more in Infosys ESG Vision 2030.
Supplier management
The Company’s ESG ambition is to nurture responsible supply chains. Infosys believes that social consciousness and
supplier diversity are important elements to enable us to meet this commitment.
Employee welfare
Welfare is at the heart of our approach to employee wellness and experience. We continuously strive towards enhancing
the well-being experience for our employees through HALE (Health Assessment & Lifestyle Enrichment) program.
Read more in Infosys ESG Report 2021-22.
Investor engagement
The Company considers investors as important stakeholders and believes in utmost transparency to engage them
in every decision. The Company publishes a comprehensive list of forthcoming and past investor conferences on its
website. The Company conducts an Investor Day to provide insights into its strategy. More information on various
engagement initiatives are provided in the Shareholder information that is part of this Integrated Annual Report.
Whistleblower Policy
All stakeholders must be able to raise concerns regarding violations and potential violations of the Company's policies
and applicable laws easily and free of any fear of retaliation. Read the Whistleblower Policy here.
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-226263Delivering valueGovernanceBRSRFinancial statementsStrategy reviewApproaching value creationIntroduction Statutory reports Approach to governance
Disclosures and transparency
1
6
2
5
3
4
Ownership structure
The Company has one of the most diverse shareholder bases in India. Apart from equity, the Company has issued
American Depository Shares (ADSs), which is traded in the New York Stock Exchange (NYSE). For more information on the
ownership structure, please refer to Shareholder Information in this Integrated Annual Report.
Financials
The Company voluntarily publishes audited financial statements on a quarterly basis to enhance transparency, integrity
and accuracy of the financials. The quarterly financials can be accessed here.
Company filings and quarterly disclosures
The Company believes in asymmetric information flow across all its stakeholders on a timely basis. Hence, it fulfills all its
statutory obligations / filings well in time. All statutory filings of the Company are accessible here.
Risk management
•
The Company has a risk management committee and a cybersecurity risk sub-committee to govern in identifying,
tracking, monitoring and reporting risks that impact the Company and its stakeholders.
The Company has also adopted an Enterprise Risk Management Policy to institutionalize a formal risk management
function and framework in the Company which is accessible here.
Audit integrity
•
The Company has appointed external independent auditors for statutory audit, internal audit and secretarial audit.
Periodically, the audit committee meets the auditors independently without the presence of the Management.
• There were no qualifications, observations or adverse remarks in the auditors’ reports and secretarial audit report.
Dividend payouts and policies
•
The Company has adopted a Capital Allocation Policy where the Company expects to return approximately 85% of
the free cash flow cumulatively over a five-year period. The policy can be accessed here.
During the year, the Company returned approximately `13,000 crore by way of dividend and buyback. Additionally,
it has proposed a final dividend of `16 per share, which constitutes approximately 73% of return of free cash flow to
the shareholders.
•
•
Responsibilities of the Board
Board as a trustee
The Board comprises eminent professionals, who have varied skillsets and experience. As trustees, the Board has a fiduciary
responsibility to ensure that the Company has clear goals aligned to shareholder value and its growth.
1
6
2
5
3
4
Board and committee composition
•
The Board has constituted six Board-level committees and a sub-committee constituting entirely of independent
directors and has adopted charters defining roles and duties of each committee.
The Board composition is determined based on specific skill requirement of each committee and reviewed periodically.
•
Training for directors
•
The Company conducts a familiarization program for all newly-appointed directors and also arranges training programs
at regular intervals.
• Each director is entitled to a training fee of US$ 5,000 per year.
Board evaluation
•
•
The Board has engaged Egon Zehnder, a leadership advisory firm on board matters, to conduct Board Evaluation.
The evaluation includes self and peer evaluation, performance of the committees and their chairpersons, and evaluation
of the Board as a whole. For fiscal 2022, the Board evaluation has been completed.
Director remuneration
•
The Board, based on the recommendation of the nomination and remuneration committee, approves remuneration of
Executive Directors.
• Remuneration to independent directors will be paid as per the criteria approved by the shareholders.
•
The Executive Director’s remuneration is linked to performance. Please refer to the Corporate governance report
for details.
Succession planning
•
The Nomination and Remuneration Committee periodically reviews and assesses the adequacy of the Company’s
policies, plans and procedures with respect to succession planning, including policies and principles for key managerial
personnel selection and performance review. The review of policies shall also encompass succession in the ordinary
course of business and in case of unexpected events.
• During the year, the committee completed the review of the succession planning policy.
Our ESG priorities in corporate governance
Our ESG priorities in
corporate governance
We aim to be a leader and set benchmarks in corporate governance in the world. Our ESG priorities in corporate governance
are as follows:
Bringing the interests of stakeholders to the
fore through our empowered, diverse and
inclusive Board
We believe that effective stakeholder engagement
is key to vibrant corporate governance. We follow a
robust process to engage with our internal and external
stakeholders and create meaningful and long-lasting
relationships with them. Our stakeholders include
government / regulatory bodies, clients, employees,
investors, suppliers and alliance partners and
the community.
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, regional and industry experience,
cultural and geographical background, age, ethnicity,
race, gender, knowledge and skills including expertise
in financial, global business, leadership, information
technology, mergers and acquisitions, Board service,
strategy, sales and marketing, risk, cybersecurity and
other domains, which will ensure that Infosys retains its
competitive advantage.
Refer to our Board Diversity Policy here
More information on Board profiles and diversity in page 14
For more information on Board committees and their working,
refer to the Corporate governance report in page 130
Building responsible supply chains
Infosys believes in and is committed to partnering
with the highest quality diverse product and service
providers to ensure that we deliver the best-of-breed
business and IT solutions to our clients. As a signatory
to the United Nations Global Compact, Infosys
leverages the UNGC principles covering human
rights, labor, environment, and anti-corruption as
foundational principles for building and improving
its sustainable supply chain practices. The Company
is committed to providing opportunities to diverse
businesses and integrating the UNGC principles into our
supply chain and towards building a positive long-term
environmental and social impact.
For more information on our value creation for our suppliers
please refer to page 48
For more information on our responsible supply chain practices please
refer to Infosys ESG Report 2021-22
Ensuring robust compliance and integrity
practices
To ensure robust corporate governance, we have
established elaborate corporate governance guidelines,
which are updated from time to time. A well-articulated
Code of Conduct and Ethics ensures the participation
of all stakeholders in building an ethical organization.
A strong Whistleblower Policy coupled with
non-retaliation measures inspires stakeholder trust.
An extensive compliance and integrity plan allows us
to proactively monitor 2,500+ laws and regulations that
apply to our operations in 67 countries and translates
them into 30,000+ compliance actions.
For more information on our robust compliance and integrity practices,
refer to Infosys ESG Report 2021-22
Engaging with stakeholders to gain trust
We employ multiple channels for regular engagement
with stakeholders, which have helped us earn their trust.
For more details, refer to Infosys ESG Report 2021-22
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-226465Delivering valueGovernanceBRSRFinancial statementsStrategy reviewApproaching value creationIntroduction Statutory reports ESG governance
In October 2020, we launched our ESG Vision 2030.
Our focus will be steadfast on leveraging technology to
battle 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 and facilitating employee
wellness and experience, delivering technology for social
good and energizing the communities we live and work in.
We will also redouble efforts to serve the interests of all
our stakeholders by leading through our core values and
setting benchmarks in corporate governance.
The Board
ESG Committee
ESG Operations Council
Our Board instituted an ESG committee on April 14, 2021
to discharge its responsibility to oversee matters related
to organization-wide ESG initiatives, priorities, and leading
ESG practices. The ESG committee reports to the Board and
meets every quarter.
Objectives of the ESG committee
The objectives are provided in the ESG committee report forming part of
the Integrated Annual Report. Read more on page 146
The objectives are also provided in the ESG committee charter,
available here
Further, there is an ESG Operations Council comprising
members of the Company's executive leadership, including
the the CEO & MD, CFO, CRO, Group Head - HRD, General
Counsel and Chief Compliance Officer, and the ESG Head.
The ESG operations council reports to the ESG committee.
The purpose of the council is to execute the programs
and plans of the ESG committee to achieve the ambitions
outlined in the ESG Vision 2030. The council nominates
sponsors from the executive leadership team who work
closely with the ESG ambition leads to ensure progress on
the goals. The council has overall responsibility for ESG
governance, reporting, communication, branding and
benchmarking performance. The Council meets every
quarter to take stock of the performance and discuss
programs and plans, as appropriate.
Interactions with other Board committees
The ESG committee works closely with other Board
committees to further our ESG ambitions. For instance,
it informs ESG risks and challenges, if any, in achieving
progress on the goals, to the risk management committee
and invites its support to address the risks. It interacts
with the stakeholders relationship committee to discuss
performance on ESG assessments and actions for
improvement. It collaborates with the CSR committee
for social impact programs. It also interacts with the
cybersecurity risk sub-committee as part of its efforts to
track progress on the information management ambitions.
Enterprise Risk Management
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 of our ERM framework.
For more information, read our Corporate governance report on page 130
and Risk management report on page 171
Climate change risk management
Climate change risk and opportunities assessment
and management is aligned with the Task Force on
Climate-related Financial Disclosures (TCFD) guidance.
Read our TCFD disclosures in the Infosys ESG Databook 2021-22
Cybersecurity risk management
Cyber risks, being one of the key risks, is managed through
multi-layered controls with a defense-in-depth approach
starting from the thoughtfully-crafted Cybersecurity
Strategy supplemented by policies, processes and controls
(preventive, detective, and corrective). Our strategy is
focused on four areas: transparency and experience,
continual improvement and compliance, cyber resilience,
and building and maintaining a positive cybersecurity
culture within the organization, thus making cybersecurity
a sustainable and repeatable process throughout
the organization.
ESG governance
ESG governance
ESG performance evaluation
Communities
ESG goals are a part of the corporate scorecard and the
performance parameters of leaders and are cascaded to
various levels in the organization. ESG performance of
the Company is linked to the compensation of the CEO
and leaders.
Refer to Annexure 3 to the Board's report in this Integrated Annual
Report on page 90
Stakeholder engagement
In addition to the ESG committee, other Board committees
and senior management are also actively involved in
enhancing our performance and disclosures on a range
of ESG issues, touching each of our stakeholder groups.
Here are some examples:
Investors
• The stakeholders relationship committee examines
and redresses complaints by investors. The committee
oversees and reviews the engagement and
communication plan with shareholders and ensures
that the views / concerns of the shareholders are
highlighted to the Board and steps are taken to address
such concerns.
• The audit committee and the nomination and
remuneration committee also safeguard the interests
of investors and other stakeholders by ensuring ethical
conduct of business and transparent communication.
For more information, refer to the Investors chapter on page 42
Employees
• The Board committees influence the culture of the
organization through the Code of Conduct and Ethics,
and employee-related policies.
• Quarterly reviews on a variety of subjects concerning
employees, including talent engagement, employee
satisfaction, attrition and more, allow the leadership to
oversee this key stakeholder group.
For more information, refer to the Employees chapter on page 46
• The CSR committee assists the Board in fulfilling
its corporate social responsibility obligations.
The committee has the overall responsibility of
identifying the areas of CSR activities, recommending
the amount of expenditure to be incurred on the
identified activities, implementing and monitoring the
CSR Policy from time to time and reporting progress on
various initiatives.
•
It also coordinates with the Infosys Foundation or other
such agency in implementing programs and executing
initiatives as per the CSR Policy of the Company.
For more information, refer to the Communities chapter on page 50
Refer to Annexure 6 to the Board's report in this Integrated Annual
Report on page 97
Clients
• The Board reviews the annual Client Value Survey in
order to understand client needs and expectations.
• The risk management committee reviews client-related
risks such as client demand environment, client
contracts and delivery of critical client engagements
periodically to ensure business results.
For more information, refer to the Customers chapter on page 44
Suppliers
• The risk management committee reviews the Enterprise
Risk Management framework to ensure supplier / supply
chain risks are effectively identified and addressed.
For more information, refer to the Suppliers chapter on page 48
Government and regulators
• The risk management committee monitors
compliance-related risks regularly and ensures strict
compliance with all regulatory norms.
• The Board members and the Management are involved
in responsibly influencing policy decisions and
advocating to build a better business environment, and
thus, a better world.
For more information, refer to the Government and regulators chapter on
page 49
For more information, refer to the charters of Board Committees
presented in the Corporate governance report on page 130
Infosys Integrated Annual Report 2021-22Infosys Integrated Annual Report 2021-226667Delivering valueGovernanceBRSRFinancial statementsStrategy reviewApproaching value creationIntroduction Statutory reports STATUTORY
REPORTS
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, 2022. 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
Standalone
Consolidated
in ` crore, except per equity share data
Revenue from operations
Other income, net
Total income
Expenses
Cost of sales
Selling and marketing expenses
General and administration expenses(1)
Total expenses
Profit / loss before finance cost and tax expenses
Finance cost
Profit before tax
Profit before tax (% of revenue)
Tax expense
Profit after tax
Profit after tax (% of revenue)
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year attributable to the
owners of the Company
Profit attributable to owners of the Company
Non-controlling interests
Earnings per share (EPS)
Basic
Diluted
1 crore = 10 million
Notes:
For the year ended
March 31,
2022
1,03,940
3,224
2021
85,912
2,467
YoY
growth
(%)
For the year ended
March 31,
2022
2021
YoY
growth
(%)
21.0
1,21,641
1,00,472
30.7
2,295
2,201
1,07,164
88,379
21.3
1,23,936
1,02,673
69,629
55,541
4,125
4,787
78,541
28,623
128
3,676
4,559
63,776
24,603
126
28,495
24,477
27.4
7,260
28.5
6,429
21,235
18,048
20.4
(48)
21.0
191
25.4
12.2
5.0
23.2
16.3
1.6
16.4
12.9
17.7
81,998
65,413
5,156
6,472
93,626
30,310
200
4,627
5,810
75,850
26,823
195
30,110
26,628
24.8
7,964
26.5
7,205
22,146
19,423
18.2
182
19.3
306
21,187
18,239
22,293
19,651
21,235
18,048
–
–
22,110
19,351
36
72
21.1
4.3
20.7
25.4
11.4
11.4
23.4
13.0
2.6
13.1
10.5
14.0
50.27
50.21
42.37
42.33
18.6
18.6
52.52
52.41
45.61
45.52
15.2
15.1
The above figures are extracted from the audited standalone and consolidated financial statements as per Indian Accounting Standards (Ind AS).
Equity shares are at par value of `5 per share.
(1)
Includes impairment of capital assets of `283 crore under CSR expense in the Standalone financial statements of the Company, consequent to the Companies
(Corporate Social Responsibility Policy) Amendment Rules, 2021. During the year ended March 31, 2021, the Company intended to transfer its CSR capital
assets created prior to January 2021 to a controlled subsidiary and the same has been completed on obtaining the requisite approvals in the year ended
March 31, 2022. The recoverable amount of capital assets 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.
70
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation
Financial position
Particulars
Net current assets
Property, plant and equipment (including capital work-in-progress)
Right-of-use assets
Goodwill and 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:
Dividends
Buyback of equity shares (including tax on buyback)
Transfer to general reserve
Transfer to Special Economic Zone Re-investment Reserve
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
(1) Excluding retained earnings
in ` crore, except equity share data
Standalone
As at March 31,
Consolidated
As at March 31,
2022
27,461
11,795
3,311
243
31,601
99,387
3,228
1,877
57,518
21,235
1,012
(12,700)
(8,822)
–
(2,794)
–
55,449
2,103
11,750
4
–
69,306
99,387
2021
30,660
11,836
3,435
234
30,152
93,939
3,367
1,419
52,419
18,048
967
(9,158)
–
(1,554)
(3,204)
–
57,518
2,130
11,831
52
–
71,531
93,939
2022
33,582
13,491
4,823
7,902
24,484
1,17,885
4,602
3,944
62,643
22,110
1,100
(12,655)
(8,822)
(10)
(3,054)
1
61,313
2,098
10,415
1,524
386
75,736
1,17,885
2021
36,868
13,482
4,794
8,151
21,226
1,08,386
4,587
3,152
56,309
19,351
1,039
(9,120)
–
(1,554)
(3,354)
(28)
62,643
2,124
10,243
1,341
431
76,782
1,08,386
71
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation
Based on consolidated financial statements
Revenue distribution by geographical segments (in %)
Revenue distribution by offerings (in %)
61.3
61.7
57.0
48.5
51.5
43.0
24.2
24.8
11.6
10.6
2.9
2.9
North America
Europe
Rest of the World
India
Digital
Core
Revenue distribution by business segments (in %)
32.4
32.0
14.7
14.6
12.6
12.5
12.5
11.9
9.4
11.0
8.5
8.2
6.8
7.0
FS(1)
Retail(2)
COM(3)
EURS(4)
MFG(5)
Hi-Tech(6)
LS(7)
3.1
2.8
Others
(8)
2021
2022
(1) FS – Includes enterprises in Financial Services and Insurance
(2) Retail – Includes enterprises in Retail, Consumer Packaged Goods and Logistics
(3) COM – Includes enterprises in Communication, Telecom OEM and Media
(4) EURS – Includes enterprises in Energy, Utilities, Resources and Services
(5) MFG – Includes enterprises in Manufacturing
(6) Hi-Tech – Includes enterprises in Hi-Tech
(7) LS – Includes enterprises in Life Sciences and Healthcare
(8) Others – Includes segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services
72
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation Global health pandemic from COVID-19
At Infosys, as we continue in our endeavor to fight waves of
the COVID-19 pandemic, our priority remains the safety and
well-being of our employees, and business continuity for our
clients. Business continuity programs were tested and practiced,
and the processes were proven to be resilient. We received the
ISO 22301 Business Continuity Management System certification
for being a company with resilient processes.
Considering employee safety as paramount, we implemented
elaborate support measures for employees during the three
COVID-19 waves in India, and at our global locations. We
operated dedicated COVID Care Centers in 14 cities in India
and also established tie-ups with more than 1,500 hospitals
in 323 cities in India for the treatment of employees and their
families. We also established a 24x7 war room and help-desk-
coordinated support measures, such as tie-ups with testing
labs and ambulance services providers, video consultation with
doctors, COVID leave provision, insurance coverage, oxygen
concentrators, medicines, fresh food, and counselling support.
During the COVID waves, we provided emergency support
(hospital beds / ventilators / plasma / oxygen) for over 6,100
employees / family members and addressed more than 78,000
queries for COVID medical support. Some of these support
measures were also provided at global locations as required.
We also leveraged our technological expertise, creating mobile
application ‘Apthamitra’ to help local governments in their
fight against COVID-19.
Vaccination efforts: We facilitated Company-sponsored
vaccination drives in India for employees and five dependents,
including booster doses. We arranged vaccination centers at
our campuses in India and also conducted vaccination camps
in major cities for the benefit of employees working from
home, away from DC locations. As on March 31, 2022, 96.1% of
employees in India were vaccinated with at least one dose, and
90% were fully vaccinated.
At global locations, we encouraged employees to avail
vaccinations provided by the governments.
Work from home (WFH): At the onset of the pandemic at 2020,
to ensure employee safety and business continuity, we were
able to transition 99% of employees globally to a work from
home arrangement. Further, based on client requirements and
the COVID situation, WFH continued as required in fiscal 2022.
We have been able to virtually engage over 1,50,000 employees
through more than 900 initiatives, and employee satisfaction
with these initiatives has been rated at an all-time high of
91% across locations.
Wellness: Amid these transitions and pandemic-related
uncertainties, the well-being of our employees has become a
critical focal point. Through concentrated efforts over the last
24 months, we have implemented several well-being initiatives
for our employees globally, including sessions with experts on
mental health, self-care and women’s health, along with sessions
on creating a healthy work-life balance. We have also developed
a virtual General Practice service in Europe, where employees can
schedule video consultations, without a physical visit.
Client support: 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 WFH processes and remote
collaboration for our 3,14,000+ 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 multiplied cybersecurity risks, not just
for us, but for clients as well. Being an early adopter of advanced
cybersecurity strategies, including the setting up of seven
Cyber Defence Centers in India, the US and Europe, we could
minimize threats to our operations as well as offer cybersecurity
solutions to our clients.
We continued to provide critical support to clients around the
world in essential services such as banking, healthcare and
communications. Although travel was ruled out for most of
the fiscal, we leveraged cloud and other digital transformation
offerings to bring in new business, ensuring maximization of
benefits to our shareholders.
Meeting and learning online: As an organization, our external
communication had to transition to new virtual models as
well. Events, such as quarterly results, analyst meetings and
the Annual General Meeting, have 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 other virtual programs allow
our training programs to continue unaffected. In fiscal 2022, the
number of employees leveraging Lex rose by 35.5% from the
previous fiscal. 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
expertise in new-age / niche technology spaces. The number
of Skill Tagged employees increased steadily during fiscal 2022,
growing by 47% over fiscal 2021. Cloud (AWS, Azure), SAP and
Python continued to feature as the most sought-after skills for
certification. Overall, we had more than 1,60,000 employees who
undertook various certifications.
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.
73
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation 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).
The shareholders approved the proposal of buyback of equity
shares recommended by the Board of Directors in the AGM
held on June 19, 2021.
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 exchanges commenced on June 25, 2021
and was completed on September 8, 2021. During this buyback
period, the Company purchased and extinguished a total of
5,58,07,337 equity shares from the stock exchanges at a volume
weighted average buyback price of ₹1,648.53 per equity share
comprising 1.31% of the pre-buyback paid-up equity share
capital of the Company. The buyback resulted in a cash outflow
of ₹9,200 crore (excluding transaction costs and tax on buyback).
The Company funded the buyback from its free reserves
including Securities Premium as explained in Section 68 of the
Companies Act, 2013.
During the year ended March 31, 2022, the Company paid an
interim dividend of `15 per share and announced a final dividend
of `16 per share, subject to shareholders’ approval in the ensuing
AGM. After returning the above amounts, the Company would
have returned approximately 73% of the free cash flow for fiscals
2020, 2021 and 2022 through dividends and buybacks, in line
with the Capital Allocation Policy.
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.
74
As of March 31, 2022, we had `27,461 crore in working capital on
a standalone basis, and `33,582 crore on a consolidated basis.
Consolidated cash and investments stand at `29,950 crore on a
standalone basis and `37,419 crore on a consolidated basis as on
March 31, 2022, as against `30,764 crore on a standalone basis,
and `38,660 crore on a consolidated basis as on March 31, 2021.
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. 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
Integrated Annual Report.
Capital expenditure on tangible assets –
standalone
This year, on a standalone basis, additions to tangible assets was
`2,381 crore. This comprises `1,100 crore in infrastructure and
`1,281 crore for investment in computer equipment.
In the previous year, we had additions to tangible assets of `2,015
crore. This comprised `1,039 crore in infrastructure, `975 crore for
investment in computer equipment, and `1 crore in vehicles.
Capital expenditure on tangible assets –
consolidated
This year, on a consolidated basis, additions to tangible assets
was `2,716 crore. This comprises `1,174 crore in infrastructure and
`1,542 crore in computer equipment.
In the previous year, we had additions to tangible assets of `2,231
crore. This comprised `1,071 crore in infrastructure, `1,159 crore
for investment in computer equipment and `1 crore in vehicles.
Leases
This year, on a standalone basis, additions to right-of-use (ROU)
assets was `374 crore. This comprises `306 crore in buildings, and
`68 crore in computer equipment.
In the previous year, we had additions to ROU assets of `1,109
crore. This comprised `1,017 crore in land and buildings, and `92
crore in computer equipment.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation This year, on a consolidated basis, additions to ROU assets was
`914 crore. This comprises `449 crore in buildings, `459 crore in
computer equipment and `6 crore in vehicles.
In the previous year, we had additions to ROU assets of `1,394
crore. This comprised `1,241 crore in land and buildings,
`140 crore for investment in computer equipment and
`13 crore in vehicles.
Dividend
The Company recommended / declared dividend as under:
Interim dividend
Final dividend
Total dividend
Payout ratio (interim and final dividend)*
Note:
Fiscal 2022
Fiscal 2021
Dividend per
share (in `)
Dividend payout
(in ` crore)
Dividend per
share (in `)
Dividend payout
(in ` crore)
6,308
6,731
15.00
(1)16.00
31.00
(2)57.2%
5,112
6,391
12.00
15.00
27.00
52.2%
The Company declares and pays dividend in Indian rupees. Companies are required to pay / distribute dividend after deducting applicable withholding income
taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.
(1) Recommended by the Board of Directors, at its meeting held on April 13, 2022. The payment is subject to the approval of the shareholders at the ensuing AGM
of the Company to be held on June 25, 2022. The record date for the purposes of the final dividend will be June 01, 2022 and will be paid on June 28, 2022.
(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. Including buyback, the
Company would have returned 73% of the free cash flow for the years ended March 31, 2020, 2021 and 2022.
* Payout ratio is computed as a percentage of Free cash flow prepared under IFRS.
Particulars of loans, guarantees or investments
Board policies
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 Integrated 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 2022 that fall under the scope of Section 188(1)
of the Companies Act, 2013. 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 Integrated 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
Integrated Annual Report.
The details of the policies approved and adopted by the Board
as required under the Companies Act, 2013 and Securities and
Exchange Board of India (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
There have been no 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
have caused enterprises to accelerate their adoption of digital
technologies – to enhance organizational resilience, get
competitive advantage and optimize cost structures. The journey
75
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation
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 their journey to a digital future.
In fiscal 2022, 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.
Scale agile digital
Reskill our people
Energize the core
Expand localization
For details of our continued investments and outcomes
of our strategic initiatives, refer to the Strategy section of
the Integrated Report.
Organization
Our go-to-market business units and solutions are detailed in the
Infosys at a glance section of the Integrated Report.
Infrastructure
There has been a net movement of 1 million sq. ft. of physical
infrastructure space during the year. The total available space as
on March 31, 2022 stands at 53.84 million sq. ft. We have presence
in 54 countries across 247 locations as on March 31, 2022.
Mergers and acquisitions (M&A)
Infosys has a systematic M&A approach aimed to strengthen
digital services capabilities, deepen industry expertise, and
expand geographical footprint.
On March 22, 2022, Infosys Consulting Pte. Ltd. (a wholly-owned
subsidiary of Infosys Limited) entered into a definitive agreement
to acquire oddity, a Germany-based digital marketing,
experience, and commerce agency, for a total consideration of
up to €50 million (approximately ₹420 crore), which includes
earn-out, management incentives and bonuses. This acquisition
is expected to strengthen the Group’s creative, branding and
experience design capabilities in Germany and across Europe.
To consummate this transaction, Infosys Consulting Pte. Ltd.
has simultaneously acquired Infosys Germany GmBH (formerly
Kristall 247. GmBH).
Subsidiaries
We, along with our subsidiaries, provide consulting, technology,
outsourcing and next-generation digital services. At the
beginning of the year, we had 24 direct subsidiaries and 62
step-down subsidiaries. As on March 31, 2022, we have 27
direct subsidiaries and 50 step-down subsidiaries. The changes
76
in subsidiaries during the year are 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 Integrated 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 performance and financial
position of each of the subsidiaries, along with the changes that
occurred, during fiscal 2022.
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 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 22+ 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 350+ companies
that participated in an external survey on the best anti-sexual
harassment initiatives in 2017, 2019, 2020 and 2021.
Infosys has constituted an Internal Committee (IC) in all the
development centers of the Company in 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
few years, 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 and Sustainability Report of
this Integrated Annual Report.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation Particulars of employees
The Company had 2,51,376 employees on standalone basis and
3,14,015 employees on consolidated basis as of March 31, 2022.
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-report2022.pdf.
The Integrated 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.
2. 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.
3. 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.
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 and 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 (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 and Sweat
Equity) Regulations, 2021, 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 and Sweat Equity)
Regulations, 2021, are available on the Company’s website, at
https://www.infosys.com/investors/reports-filings/Documents/
disclosures-pursuant-SEBI-regulations2022.pdf.
The details of the 2019 Plan and 2015 Plan form part of
the Notes to accounts of the financial statements in this
Integrated 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.
77
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation Our Corporate governance report for fiscal 2022 forms part of this
Integrated 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, regional and
industry experience, cultural and geographical background, age,
ethnicity, race, gender, knowledge and skills including expertise
in financial, global business, leadership, technology, mergers
& acquisitions, Board service, strategy, sales and marketing,
Environment, Social and Governance (ESG), risk and cybersecurity
and other domains, which will ensure that Infosys retains its
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
Integrated Annual Report.
Number of meetings of the Board
The Board met eight times during the financial year. The meeting
details are provided in the Corporate governance report that
forms part of this Integrated 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, 2022, the Board
had eight members, one of who is an executive director, 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
Integrated 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.
78
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 2022. The
evaluation parameters and the process have been explained in
the Corporate governance report.
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
The shareholders approved the following appointments during
the 40th AGM held on June 19, 2021:
• Bobby Parikh, as an independent director of the Board
effective July 15, 2020
• Chitra Nayak, as an independent director of the Board
effective March 25, 2021
Reappointments
Director liable to retire by rotation
As per the provisions of the Companies Act, 2013, Nandan. M.
Nilekani, the non-executive and non-independent chairman,
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. The
notice convening the 41st AGM, to be held on June 25, 2022,
sets out the details.
Reappointment of independent director
D. Sundaram was appointed as an independent director for
the first term of five years effective July 14, 2017. His office of
directorship is due for retirement on July 13, 2022. Based on
the recommendation of the nomination and remuneration
committee and after taking into account the performance
evaluation of his first term of five years and considering the
knowledge, acumen, expertise, experience and the substantial
contribution he brings to the Board, the committee has
recommended the appointment of D. Sundaram to the Board
for a second term of five years. The Board, at its meeting held
on April 13, 2022, approved the reappointment of D. Sundaram
as an independent director of the Company with effect from
July 14, 2022 to July 13, 2027, whose office shall not be liable to
retire by rotation.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation The Board recommends the reappointment to the shareholders.
The notice convening the 41st AGM, to be held on June 25, 2022,
sets out the details.
Retirements and resignations
U.B. Pravin Rao, COO and Whole-time Director, retired as member
of the Board effective December 12, 2021. The Board expressed
its deep sense of appreciation for Pravin’s leadership over his
35 years of service with the Company and acknowledges his
immense efforts and contributions towards global delivery and
business enablement. The disclosure in this regard is available
at https://www.infosys.com/investors/documents/retirement-
whole-time-director-13dec2021.pdf.
Committees of the Board
As on March 31, 2022, the Board had six committees: the audit
committee, the corporate social responsibility committee, the
nomination and remuneration committee, the risk management
committee, the stakeholders relationship committee and the
Environment, Social and Governance (ESG) committee. All
committees comprise only independent directors, one of whom
is chosen as the chairperson of the committee.
The Board, at its meeting held on April 14, 2021,
instituted the ESG committee.
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 Integrated Annual Report.
Cybersecurity
At Infosys, while our employees operated efficiently as
a remote and hybrid workforce, we continued to remain
vigilant on the evolving cybersecurity threat landscape. In
our endeavor to maintain a robust cybersecurity posture, the
team has remained abreast of emerging cybersecurity events
globally, so as to achieve higher compliance and its continued
sustenance. We continue to be certified against the Information
Security Management System (ISMS) Standard ISO 27001:2013.
Additionally, we have also been attested on SSAE 18 SOC 1
and SOC 2 by an independent audit firm. During the year, our
focus on our cybersecurity personnel’s training and reskilling
went ahead as planned, together with our overall 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/documents/
annual-returns-2021-22.pdf.
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 `2,02,58,692. Further, 4,154
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 (to the extent notified) 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
relevant amendment rules issued there after. 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.
79
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation The directors confirm that:
•
•
•
•
•
•
In preparation of the annual accounts for the financial year
ended March 31, 2022, 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 2022 does not contain any
qualification, reservation or adverse remark. The Report is
enclosed with the financial statements in this Integrated
Annual Report.
The Secretarial Auditors’ Report for fiscal 2022 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 2022 is enclosed as Annexure 4
to the Board’s report.
The Secretarial Auditor’s certificate on the implementation of
share-based schemes in accordance with SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021, will
be made available at the AGM, electronically.
•
•
•
Auditors
Statutory auditors
Under Section 139(2) of the Companies Act, 2013 and the Rules
made thereunder, it is mandatory to rotate the statutory auditors
on completion of two terms of five consecutive years and each
such term would require approval of the shareholders. In line
with the requirements of the Companies Act, 2013, Statutory
Auditor M/s Deloitte Haskins & Sells LLP, Chartered Accountants
(ICAI Firm Registration Number 117366W/ W-100018) were
appointed as Statutory Auditor of the Company at the 36th AGM
held on June 24, 2017 to hold office from the conclusion of the
said meeting till the conclusion of the 41st AGM to be held in the
year 2022. The term of office of M/s Deloitte Haskins & Sells LLP,
as Statutory Auditors of the Company will conclude from the
close of the forthcoming AGM of the Company.
80
The Board of Directors of the Company, based on the
recommendation of the audit committee, at its meeting held
on April 13, 2022, reappointed M/s Deloitte Haskins & Sells
LLP, Chartered Accountants (ICAI Firm Registration Number
117366W/ W-100018) as the Statutory Auditor of the Company to
hold office for a second term of five consecutive years from the
conclusion of the 41st AGM till the conclusion of the 46th AGM to
be held in the year 2027 and will be placed for the approval of the
shareholders at the ensuing AGM.
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.
The Board recommends their reappointment to the shareholders.
The notice convening the 41st AGM to be held on June 25, 2022
sets out the details.
Secretarial auditor
Makarand M. Joshi & Co., Practicing Company Secretaries, are
appointed as secretarial auditor of the Company for fiscal 2023,
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 2022, 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, Europe 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,
Infosys Foundation, and Infosys Foundation USA form part of this
Integrated Annual Report.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsBoard’s reportStrategy reviewApproaching value creation 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 and Sustainability Report
(BRSR)
In November 2018, the Ministry of Corporate Affairs (MCA)
constituted a Committee on Business Responsibility
Reporting (“the Committee”) to finalize business responsibility
reporting formats for listed and unlisted companies, based
on the framework of the National Guidelines on Responsible
Business Conduct (NGRBC). Through its report, the Committee
recommended that BRR be rechristened BRSR, where disclosures
are based on ESG parameters, compelling organizations to
holistically engage with stakeholders and go beyond regulatory
compliances in terms of business measures and their reporting.
SEBI, vide its circular dated May 10, 2021, made BRSR mandatory
for the top 1,000 listed companies (by market capitalization)
from fiscal 2023, while disclosure is voluntary for fiscal 2022 .
The Committee Report encourages companies to report their
performance for fiscal 2022 to be better prepared to adopt this
framework from the next fiscal.
Infosys has adopted the BRSR voluntarily for fiscal 2022 to
provide enhanced disclosures on ESG practices and priorities
of the Company. The BRSR disclosures form a part of Infosys’
Integrated Annual Report 2021-22. In addition to this, we also
publish a comprehensive ESG Report annually, based on the
GRI standard. The non-financial sustainability disclosures
in our Integrated Annual Report and ESG Report have been
independently assured by KPMG. The ESG Report is available
at https://www.infosys.com/sustainability/documents/infosys-
esg-report-2021-22.pdf.
Environmental, Social and Governance (ESG)
In October 2020, we launched our ESG Vision 2030. Our focus
is steadfast on leveraging technology to battle climate change,
conserving water and managing waste. On the social front, our
emphasis is on the development of people, especially around
digital skilling, improving diversity and inclusion, facilitating
employee wellness and experience, delivering technology for
good and energizing the communities we work in. We are also
redoubling efforts to serve the interests of all our stakeholders,
by leading through our core values and setting benchmarks in
corporate governance. Our Board instituted an ESG committee
on April 14, 2021, to discharge its oversight responsibility on
matters related to organization-wide ESG initiatives, priorities,
and leading ESG practices. The ESG committee reports to the
Board and meets every quarter.
Acknowledgments
We thank our clients, vendors, investors, bankers, employee volunteers and trustees of 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, Coimbatore , 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 13, 2022
for and on behalf of the Board of Directors
Sd/-
Nandan M. Nilekani
Chairman
Sd/-
Salil Parekh
Chief Executive Officer and Managing Director
81
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsBoard’s reportFinancial statementsStrategy reviewApproaching value creation 8
2
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)
Sl.
No.
Name of the
subsidiary
Financial
period
ended
Date of
acquisition
Exchange rate /
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
in ₹ crore, except % of shareholding and exchange rate
Total liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
Infosys BPM
Limited(2)
EdgeVerve
Systems Limited
Infosys McCamish
Systems LLC(3)
Infy Consulting
Company Ltd(4)
Infosys Public
Services, Inc. USA
Stater Nederland
B.V.(5)
Infosys Poland Sp.
z o.o.(3)
Infosys
Technologies
(China) Co. Limited
Outbox systems
Inc. dba Simplus
(US)(6)
Infosys Compaz
PTE. Ltd(7)
Infosys
Technologies
(Shanghai)
Company Limited
Mar 31,
2022
Mar 31,
2022
Dec 31,
2021
Mar 31,
2022
Mar 31,
2022
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
NA
NA
Dec 4,
2009
NA
NA
NA
Oct 1,
2007
NA
INR
INR
1 USD =
₹ 74.34
1 GBP =
₹ 99.46
1 USD =
₹ 75.79
1 EUR =
₹ 84.22
1 PLN =
₹ 18.21
1 RMB =
₹ 11.7
Jan 31,
2022
Mar 13,
2020
1 USD =
₹ 74.62
Mar 31,
2022
Dec 31,
2021
Nov 16,
2018
NA
1 SGD =
₹ 55.97
1 RMB =
₹ 11.7
1
2
3
4
5
6
7
8
9
10
11
12
13
34
4,784 6,629
1,811
1,720
6,684
1,235
275
960
100.00
1,312
(506)
1,555
749
381
3,005
1,026
276
750
100.00
2,752
262
72
190
99.99
175
559
3,286
2,552
135
61
656
460
98
690
1,212
8
4
206
463
675
1,099
368
(51)
584
424
249
420
267
–
–
–
–
1,414
55
1,363
163
1,258
126
100
862
132
–
804
54
263
(207)
263
207
57
615
(31)
24
46
31
24
–
–
31
100.00
117
100.00
95
75.00
108
100.00
54
100.00
(31)
100.00
13
168
336
1,004
(327)
1,025
155
348
–
–
–
–
511
72
10
62
60.00
486
(48)
–
(48)
100.00
444
79
20
59
100.00
443
(85)
–
(85)
100.00
Infosys
Technologies S. de
R. L. de C. V.
Infosys Automotive
and Mobility
GmbH & Co. KG(8)
Dec 31,
2021
Dec 31,
2021
NA
NA
1 MXN =
₹ 3.63
1 EUR =
₹ 84.22
65
258
456
133
15
(85) 1,683
1,753
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review Sl.
No.
Name of the
subsidiary
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)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
14
Infosys Consulting
GmbH(4)
15
HIPUS Co., Ltd(7)
16 WongDoody,
Inc(9)(10)
17
Panaya Ltd.(11)
18
Infosys Consulting
S.R.L. (Romania)
19
Fluido Oy(12)
20
21
22
23
24
25
26
27
Infosys Consulting
Ltda.
Infosys (Czech
Republic)
Limited s.r.o(3)
Kaleidoscope
Animations Inc(13)
Infosys Consulting
AG(4)
Portland Group
Pty Ltd(3)
Infosys
Technologies
(Sweden) AB
Stater Belgium
N.V./S.A.(14)(15)
Infosys
Management
Consulting Pty.
Limited(4)
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
NA
Apr 1,
2019
NA
NA
NA
Oct 11,
2018
NA
NA
Oct 9,
2020
NA
Jan 4,
2012
NA
NA
NA
28
Blue Acorn LLC(16)(17) Dec 31,
NA
29
iCi Digital LLC(18)(19)
30
Infosys BPO
Americas LLC.(3)
8
3
2021
Dec 31,
2021
Mar 31,
2022
NA
NA
1 EUR =
₹ 84.22
1 JPY =
₹ 0.62
1 USD =
₹ 74.34
1 USD =
₹ 74.34
1 RON =
₹ 17.01
1 EUR =
₹ 84.22
1 BRL =
₹ 13.34
1 CZK =
₹ 3.46
1 USD =
₹ 74.34
1 CHF =
₹ 81.46
1 AUD =
₹ 56.74
1 SEK =
₹ 8.22
1 EUR =
₹ 84.22
1 AUD =
₹ 54.04
1 USD =
₹ 74.34
1 USD =
₹ 74.34
1 USD =
₹ 75.79
17
32
48
215
150
57 1,328
1,239
1
370
427
256
(882)
352
17
35
102
5
108
170
421
(343)
171
56
978
50
57
93
3
103
248
142
–
1
72
85
62
217
18
47
183
2
82
148
54
17
24
119
22
65
2
13
42
136
(85)
79
130
(119)
67
13
154
118
64
41
26
27
28
56
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
384
336
300
289
247
244
237
231
230
216
202
194
192
186
30
41
94
37
18
23
11
22
36
27
23
36
10
14
181
(3)
169
4
165
(69)
–
13
–
1
–
8
2
3
5
5
8
1
5
4
–
–
–
30
28
94
36
18
15
100.00
81.00
100.00
100.00
100.00
100.00
9
100.00
19
100.00
31
100.00
22
100.00
15
35
100.00
100.00
5
75.00
10
100.00
(3)
100.00
4
100.00
(69)
100.00
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 8
4
Sl.
No.
Name of the
subsidiary
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)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
31
GuideVision,
s.r.o.(20)
32
Stater N.V.(7)
Dec 31,
2021
Dec 31,
2021
Oct 1,
2020
May 23,
2019
33
34
35
36
37
Infosys
Luxembourg S.à.r.l
Mar 31,
2022
Fluido Sweden AB
(Extero)(21)
Dec 31,
2021
Simplus Australia
Pty Ltd(22)
Infy Consulting
B.V.(4)
Infosys Consulting
SAS(4)
38 WDW
Communications,
Inc(9)(23)
Jan 31,
2022
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
NA
NA
NA
NA
NA
NA
39
SureSource LLC(16)(17) Dec 31,
NA
40 HypoCasso B.V.(5)
2021
Dec 31,
2021
NA
41
42
43
Infosys Middle East
FZ-LLC(12)
Dec 31,
2021
Jan 1,
2018
Infosys Consulting
Pte. Ltd.
Infosys Consulting
(Belgium) NV(24)
Dec 31,
2021
Dec 31,
2021
NA
NA
44 Mediotype LLC(25)(26) Dec 31,
NA
45
Panaya Inc.
46
47
48
49
Fluido Norway
A/S(21)
Simplus
Philippines, Inc.(27)
Fluido Denmark
A/S(21)
Brilliant Basics
Limited(28)(29)
2021
Dec 31,
2021
Dec 31,
2021
Jan 31,
2022
Dec 31,
2021
Mar 31,
2022
Mar 5,
2015
NA
NA
NA
NA
1 CZK =
₹ 3.39
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
1 SEK =
₹ 8.22
1 AUD =
₹ 52.62
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
1 USD =
₹ 74.34
1 USD =
₹ 74.34
1 EUR =
₹ 84.22
1 AED =
₹ 20.24
1 SGD =
₹ 55.1
1 EUR =
₹ 84.22
1 USD =
₹ 74.34
1 USD =
₹ 74.34
1 NOK =
₹ 8.44
1 PHP =
₹ 1.47
1 DKK =
₹ 11.32
1 GBP =
₹ 99.46
–
45
95
38
529
910
17
(10)
62
11
(8)
35
18
(44)
36
1
34
78
29
(8)
45
50
343
55
32
62
43
24
–
(253)
37
290
236
(226)
58
8
1
12
33
(21)
35
48
13
55
1,374
43 2,331
914
3
(12)
61
52
(12)
46
70
6
–
–
1
3
–
388
703
315
20
37
7
25
(1)
21
1
1
17
17
19
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
158
29
4
25
100.00
142
181
(14)
195
75.00
108
104
100
96
96
2
13
(4)
17
10
92
(51)
90
88
84
81
67
64
61
56
53
44
34
15
7
–
108
6
21
2
17
3
(1)
3
–
1
–
4
–
–
–
2
–
7
–
–
1
4
–
(1)
1
2
100.00
12
100.00
(4)
100.00
13
10
100.00
100.00
(51)
100.00
15
100.00
5
–
75.00
100.00
101
100.00
6
99.90
21
100.00
1
100.00
13
100.00
3
–
2
100.00
100.00
100.00
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review Sl.
No.
Name of the
subsidiary
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)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
50
Infosys Chile SpA
Infosys Fluido
U.K., Ltd. (formerly
known as Simplus
U.K, Ltd)(30)
GuideVision UK
Ltd(31)
Infosys (Malaysia)
SDN. BHD.
(formerly Global
Enterprise
International
(Malaysia) Sdn.
Bhd.)(32)
Kaleidoscope
Prototyping LLC(33)
GuideVision
Magyarország
Kft.(31)
51
52
53
54
55
56
57
58
Infosys Consulting
S.R.L. (Argentina)(4)
Dec 31,
2021
GuideVision Polska
SP. Z O.O.(31)
Dec 31,
2021
GuideVision
Deutschland
GmbH(31)
59
Panaya GmbH(11)
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
60
61
62
63
64
GuideVision Suomi
Oy(31)
Dec 31,
2021
Fluido Slovakia
s.r.o(21)
Infosys Austria
GmbH
Infosys Green
Forum(34)
Infosys Limited
Bulgaria EOOD(35)
Dec 31,
2021
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
8
5
NA
NA
NA
Dec 14,
2021
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
1 CLP =
₹ 0.09
1 GBP =
₹ 100.42
1 GBP =
₹ 100.42
1 MYR =
₹ 18.03
1 USD =
₹ 74.34
1 HUF =
₹ 0.23
1 ARS =
₹ 0.72
1 PLN =
₹ 18.34
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
INR
1 BGN =
₹ 43.02
7
4
–
29
6
20
(13)
13
2
4
17
53
–
–
11
14
1
5
10
(11)
55
–
–
–
–
1
1
1
2
1
5
4
6
(2)
73
1
4
2
3
6
13
287
329
(1)
2
7
22
15
20
3
4
56
3
1
75
2
1
10
41
1
–
–
–
–
–
–
–
–
–
–
–
–
–
23
–
30
30
30
21
20
18
15
11
10
9
8
5
4
4
3
8
(10)
3
(4)
6
(3)
(6)
(3)
–
–
1
(1)
1
5
(1)
2
–
1
–
–
1
–
–
–
–
–
–
–
–
–
6
100.00
(10)
100.00
2
100.00
(4)
100.00
6
100.00
(4)
100.00
(6)
(3)
100.00
100.00
–
100.00
–
1
100.00
100.00
(1)
100.00
1
5
100.00
100.00
(1)
100.00
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 8
6
Sl.
No.
Name of the
subsidiary
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)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
65
Infosys Turkey
Bilgi Teknolojikeri
Limited Sirketi(36)
66
Stater XXL B.V.(5)
67
Skava Systems
Private Limited(28)
68 WongDoody
Holding Company
Inc.(37)
Brilliant Basics
Holdings Limited(28)
Infosys Americas
Inc.,
Infosys Nova
Holdings LLC.
Infosys Consulting
Holding AG
Infosys Arabia
Limited(38)
Infosys Fluido
Ireland, Ltd.
(formerly known
as Simplus Ireland,
Ltd)(39)
Blue Acorn iCi Inc
(formerly Beringer
Commerce Inc)(40)
Beringer Capital
Digital Group
Inc.(40)(26)
Beringer
Commerce
Holdings LLC(25)(26)
Infosys Germany
Holding Gmbh(41)
69
70
71
72
73
74
75
76
77
78
79
80
Stater Gmbh(5)(42)
Dec 31,
2021
Dec 31,
2021
Mar 31,
2022
Dec 31,
2021
Mar 31,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
NA
NA
Jun 2,
2015
May 22,
2018
Sep 8,
2017
NA
NA
Oct 22,
2012
NA
NA
NA
1 TRY =
₹ 5.59
1 EUR =
₹ 84.22
INR
1 USD =
₹ 74.34
1 GBP =
₹ 99.46
1 USD =
₹ 75.79
1 USD =
₹ 74.34
1 CHF =
₹ 81.46
1 SAR =
₹ 19.8
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
–
–
–
1
3
–
1
76
88
32
–
198
–
1
62
62
–
1
2,766
(23) 2,806
162
273
488
3
–
3
2
1
12
166
–
–
63
53
–
–
(244)
90
334
1
(7)
–
6
Dec 31,
2021
Oct 27,
2020
1 USD =
₹ 74.34
6
434
450
10
Dec 31,
2021
Oct 27,
2020
1 USD =
₹ 74.34
2
145
148
Dec 31,
2021
Dec 31,
2021
Dec 31,
2021
NA
NA
NA
1 USD =
₹ 74.34
1 EUR =
₹ 84.22
1 EUR =
₹ 84.22
390
1
391
2
–
–
(2)
2
3
1
–
–
5
Stater
Participations B.V.(5)
Dec 31,
2021
–
–
76
–
–
–
–
–
–
–
–
–
–
–
–
–
2
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2
1
–
–
116
–
(12)
73
–
–
(3)
–
–
–
–
(2)
1
–
–
2
–
–
–
–
–
–
–
1
100.00
1
–
75.00
100.00
(2)
100.00
116
100.00
–
100.00
(12)
100.00
73
100.00
–
–
70.00
75.00
(3)
100.00
3
(3)
100.00
(2)
2
100.00
–
–
–
–
–
100.00
100.00
(2)
75.00
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review Sl.
No.
Name of the
subsidiary
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)
Investments
Turnover(1)
(includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation(1)
Provision
for
taxation(1)
Profit /
(Loss)
after
taxation(1)
% of
shareholding
81
82
83
Simplus ANZ Pty
Ltd.(27)
Infosys South
Africa (Pty) Ltd(12)
Infosys Germany
GmbH (formerly
Kristall 247. GmbH
(“Kristall”))(43)
Jan 31,
2022
Dec 31,
2021
Dec 31,
2021
NA
NA
Mar 22,
2022
1 AUD =
₹ 52.62
1 ZAR =
₹ 4.68
1 EUR =
₹ 84.22
–
–
–
–
–
–
–
–
–
84
Simply Commerce
LLC(16)(17)
Dec 31,
2021
NA
1 USD =
₹ 74.34
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100.00
100.00
100.00
–
–
–
–
100.00
(1) Converted at monthly average exchange rates
(24) Majority-owned and controlled subsidiaries of Infosys Consulting Holding AG
(2) On March 17, 2022, Infosys Limited acquired non-controlling interest of 0.01% of the voting
(25) Wholly-owned subsidiary of Blue Acorn iCi Inc
interests in Infosys BPM Limited
(3) Wholly-owned subsidiary of Infosys BPM Limited
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
(5) Wholly-owned subsidiary of Stater N.V.
(6) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(26) Merged with Blue Acorn iCi Inc, effective January 1, 2022
(27) Wholly-owned subsidiary of Outbox Systems Inc.
(28) Under Liquidation
(29) Wholly-owned subsidiary of Brilliant Basics Holding Limited
(30) On June 1, 2020, Fluido Oy, acquired 100% of the voting interests in Infosys Fluido U.K, Ltd
(7) Majority-owned and controlled subsidiary of Infosys Consulting Pte. Ltd.
(formerly known as Simplus U.K, Ltd)
(8) A wholly-owned subsidiary of Infosys Limited. On March 28, 2021 Infosys Limited and Infosys
(31) Wholly-owned subsidiary of GuideVision s.r.o
Germany Holding Gmbh registered Infosys Automotive and Mobility GmbH & Co. KG, a
partnership firm
(9) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(32) On December 14, 2021, Infosys Consulting Pte. Ltd., a wholly-owned subsidiary of Infosys Limited
acquired 100% of voting interests in Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise
International (Malaysia) Sdn. Bhd.)
(10) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(33) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(11) Wholly-owned subsidiary of Panaya Inc.
(34) A wholly-owned subsidiary of Infosys Limited, was incorporated on August 31, 2021
(12) Wholly-owned subsidiary of Infosys consulting Pte. Ltd.
(35) A wholly-owned subsidiary of Infosys Limited, was incorporated effective September 11, 2020
(13) On October 9, 2020, Infosys Nova Holdings LLC, acquired 100% voting interest in Kaleidoscope
(36) A wholly-owned subsidiary of Infosys Limited, was incorporated on December 30, 2020
Animations, Inc.
(37) Wholly-owned subsidiary of Infosys Limited, merged with WongDoody Inc, effective
(14) Majority-owned and controlled subsidiary of Stater Participations B.V.
December 31, 2021
(15) On December 29, 2020, Stater Participation B.V acquired non-controlling interest of 28.01% of the
(38) Majority owned and controlled subsidiary of Infosys Limited
voting interests in Stater Belgium NV/SA
(16) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(17) Merged with Beringer Commerce Holdings LLC, effective January 1, 2022
(18) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(19) Merged with Beringer Capital Digital Group Inc, effective January 1, 2022
(39) Wholly-owned subsidiary of Infosys Fluido U.K,Ltd (formerly Simplus U.K, Ltd)
(40) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned subsidiary of Infosys Limited,
acquired 100% voting interest in Blue Acorn iCi Inc (formerly Beringer Commerce Inc) and Beringer
Capital Digital Group Inc
(41) A wholly-owned subsidiary of Infosys Limited, was incorporated on March 23, 2021
(20) On October 1, 2020, Infy Consulting Company Limited acquired 100% of voting interests in
(42) Incorporated on August 4, 2021
GuideVision s.r.o
(21) Wholly-owned subsidiary of Fluido Oy
(22) Wholly-owned subsidiary of Simplus ANZ Pty Ltd.
(23) Wholly-owned subsidiary of WongDoody Holding Company Inc., merged with WongDoody Inc,
8
7
effective December 31, 2021
(43) On March 22, 2022, Infosys Consulting Pte. Ltd., a wholly-owned subsidiary of Infosys Limited
acquired 100% of voting interests in Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 8
8
Notes:
1.
Investments exclude investments in subsidiaries.
2. Proposed dividend from any of the subsidiaries is nil except for Infosys BPM Limited which proposed a final dividend of ` 2,05,000/- per equity share (` 10,000 par value) subject to approval of
shareholders in ensuing Annual General Meeting of the Company.
3.
Infosys Canada Public services Inc incorporated effective November 27, 2018, wholly owned subsidiary of Infosys Public Services Inc., has been liquidated effective November 23, 2021.
4. Reserve and Surplus includes Other comprehensive income and securities premium.
5. Simplus North America Inc., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective April 27, 2021.
6. Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective July 20, 2021.
7.
Infosys Consulting (Shanghai) Co., Ltd., a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective September 01, 2021.
8. Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus Australia Pty Ltd, has been liquidated effective September 02, 2021.
9.
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.), a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective December 16, 2021.
10. Infosys BPM UK Limited, a wholly owned subsidiary of Infosys BPM Ltd, incorporated, effective December 9, 2020 and has yet to commence operations.
11. Infosys Business Solutions LLC, a wholly-owned subsidiary of Infosys Limited, was incorporated on February 20, 2022 and has yet to commence operations.
12. Beringer Capital Digital Group Inc, Mediotype LLC and Beringer Commerce Holdings LLC, merged into Blue Acorn iCi Inc effective January 1, 2022.
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer and
Managing Director
D. Sundaram
Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review
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, 2022, 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, 2022.
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors
Sd/-
Sd/-
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and
Managing Director
89
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 9
0
Annexure 3 – Particulars of employees
We are a leading provider of consulting, technology, outsourcing and next-generation digital services. We enable clients across 54 countries to outperform their competition
and stay ahead on 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 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 2022 as compared to fiscal 2021 is primarily on account of increase in
perquisite value of stock incentives granted in previous years and exercised during the year. 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)
% increase of
remuneration in fiscal
2022 as compared to
fiscal 2021(1)
Ratio of
remuneration
to MRE(1)
% increase of remuneration in fiscal
2022 as compared to fiscal 2021
(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 2022
Nandan M.
Nilekani(2)
00041245
Kiran Mazumdar-
Shaw
00347229
Non-executive and
Non-independent
Chairman
Lead Independent
Director
D. Sundaram
00016304
Independent Director
Michael Gibbs
08177291
Independent Director
Uri Levine
08733837
Independent Director
Bobby Parikh
00019437
Independent Director
Chitra Nayak
Salil Parekh(3)
09101763
01876159
U.B. Pravin Rao(4)
06782450
Independent Director
Chief Executive Officer
and Managing Director
Chief Operating Officer
and Whole-time
Director
Nilanjan Roy(5)
NA
Chief Financial Officer
A.G.S. Manikantha(6) NA
Company Secretary
MRE – Median Remuneration of Employees
–
92
78
83
NA
NA
NA
43
NA
37
34
–
26
27
23
20
20
21
872
NA
102
18
–
92
78
83
NA
NA
NA
–
NA
(11)
13
–
26
27
23
20
20
21
–
–
–
–
–
–
–
229
1,88,452
NA
–
52
11
24,423
1,800
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 2022 and full fiscal 2021. 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 2022.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
The increase in remuneration for the executive directors and KMP in fiscal 2022 as compared to fiscal 2021 is primarily on account of increase in perquisite value of stock incentives granted in previous
years and exercised during the year.
(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 2022 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) a) Remuneration includes ` 52.33 crore pertaining to exercise of 2,29,792 Restricted Stock Units (RSUs) under the 2015 Plan and 1,48,434 RSUs under the 2019 Plan during fiscal 2022.
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 96,150 performance-based RSUs under the 2015 Plan effective May 2, 2021
ii) the grant of 18,340 annual time-based RSUs for fiscal 2022 under the 2015 Plan effective February 1, 2022
iii) the grant of 73,962 performance-based RSUs for fiscal 2022 under the 2019 Plan effective May 2, 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 current employment agreement.
c) The Board, on April 13, 2022, 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 ` 13 crore for fiscal 2023 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, 2022 and the number of RSUs will be calculated based on the market price at the close of trading on May 2, 2022.
(4) U.B. Pravin Rao retired as a Chief Operating Officer and Whole-time director effective December 12, 2021.
(5) a) Remuneration includes ` 4.07 crore on account of exercise of 22,727 RSUs under the 2015 Plan and 5,000 RSUs under the 2019 Plan during fiscal 2022.
b) On the recommendations of the nomination and remuneration committee, the Board approved
i)
the grant of 5,547 performance-based RSUs under the 2015 Plan effective May 2, 2021
ii) the grant of 9,876 annual time-based RSUs under the 2015 Plan effective February 1, 2022
iii) the grant of 9,000 performance-based RSUs under the 2019 Plan effective March 31, 2022. 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 13, 2022, 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 ` 0.87 crore under the 2015 Plan. The RSUs will be granted effective May 2, 2022 and the number of RSUs will be calculated based on the market price
at the close of trading on May 2, 2022.
(6) a) Remuneration includes ` 0.58 crore on account of exercise of 2,685 RSUs under the 2015 Plan and 1,000 RSUs under the 2019 Plan during fiscal 2022.
b) On the recommendations of the nomination and remuneration committee, the Board approved the grant of 1,800 performance-based RSUs under the 2019 Plan effective March 31, 2022. These
RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
The MRE was `8,14,332 and `7,21,314 in fiscal 2022 and fiscal 2021, respectively. The increase in MRE in fiscal 2022, as compared to fiscal 2021, is 12.9%.
The average annual increase in the salaries of employees was 14.6% 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 during fiscal 2022. However, the KMP remuneration presented in this report shows a higher remuneration for
fiscal 2022 as compared to fiscal 2021 primarily on account of the increase in perquisite value of stock incentives granted in previous years but exercised during the year.
The increase in perquisite value of stock incentives exercised during the year also includes the impact of share price increase.
9
1
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
9
2
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
Educational
qualification
Age
Experience
(in years)
Date of
joining
Location
Remuneration in
fiscal 2022 (in `)(1)
No. of RSUs granted
in fiscal 2022(2)
Previous employment and
designation
1,88,452 Capgemini, Director General
– IISC, Trainee
88,420 Sapient Corporation,
Director
95,010 ABN AMRO Bank, Manager
40,815 Vanguard, Managing
Director
35,200 Wipro, Senior Vice President
and General Counsel
Manager Information
Technology
– EVP and Global Consulting
Leader, Cognizant
B.Tech, ME
BE
BE, PGD
57
60
50
47
58
34
37
28
25
37
Jan 2, 2018
India
Aug 4, 1986
India
Nov 8, 2002
US
Dec 7, 2000
UK
Oct 12, 2020 US
71,02,40,274(3)
37,25,68,706(4)
35,82,65,796(5)
34,89,95,497(6)
23,82,59,617(7)
BA LLB, LLM 57
31
Jul 3, 2017
US
17,44,61,272(8)
Employee name
Designation
Salil Parekh
CEO & MD
U.B. Pravin Rao
COO & WTD
Ravi Kumar S.
President
Mohit Joshi
President
BA(H), MBA
Martha G. King
Chief Client Officer
BS
Inderpreet
Sawhney
Karmesh Gul
Vaswani
Anand
Swaminathan
Group General Counsel and
Chief Compliance Officer
Segment Head – CPG,
Logistics & Retail
Segment Head –
Communication, Media and
Technology
ACS, AICWA,
MS
Anant R. Adya
Consulting Services
Group Practice Engagement
Manager
BE
50
29
Mar 3, 2003
UK
14,64,53,864(9)
34,880 Accenture, Senior Manager
50
30
Apr 26, 1999 US
13,36,04,867(10)
25,130 Rane Brake Linings Limited,
Mark Livingston Global Head – Management
BS
66
36
Dec 17, 2018 US
11,52,80,855(11)
B.Sc
49
27
Nov 10, 2008 US
10,21,28,085(12)
21,280 Wipro, Project Manager
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 2022 is included in
the table above.
(2)
Includes equity-settled and cash-settled RSUs issued at par under the 2015 and 2019 Plans.
(3) Remuneration includes ` 52.33 crore on account of the exercise of 2,29,792 RSUs under the 2015 Plan and 1,48,434 under the 2019 Plan during fiscal 2022.
(4) a) Remuneration includes ` 26.19 crore on account of exercise of 45,351 RSUs, 86,000 ESOPs under the 2015 Plan and 59,374 RSUs under the 2019 Plan during fiscal 2022.
b) U.B. Pravin Rao retired as a Chief Operating Officer and Whole-time director effective December 12, 2021.
(5) Remuneration includes ` 25.58 crore on account of exercise of 1,02,601 RSUs, 56,376 ESOPs under the 2015 Plan and 16,667 RSUs under the 2019 Plan during fiscal 2022.
(6) Remuneration includes ` 20.22 crore on account of exercise of 1,03,313 RSUs under the 2015 Plan and 16,667 RSUs under the 2019 Plan during fiscal 2022.
(7) Remuneration includes ` 2.39 crore on account of exercise of 13,441 RSUs under the 2015 Plan during fiscal 2022.
(8) Remuneration includes ` 9.62 crore on account of exercise of 31,926 RSUs, 33,334 ESOPs under the 2015 Plan and 8,334 RSUs under the 2019 Plan during fiscal 2022.
(9) Remuneration includes ` 6.71 crore on account of exercise of 31,550 RSUs under the 2015 Plan and 8,334 RSUs under the 2019 Plan during fiscal 2022.
(10) Remuneration includes ` 8.25 crore on account of exercise of 43,125 RSUs under the 2015 Plan and 11,667 RSUs under the 2019 Plan during fiscal 2022.
(11) Remuneration includes ` 4.59 crore on account of exercise of 21,413 RSUs under the 2015 Plan and 5,000 RSUs under the 2019 Plan during fiscal 2022.
(12) Remuneration includes ` 6.03 crore on account of exercise of 27,115 RSUs, 9,724 ESOPs under the 2015 Plan and 5,000 RSUs under the 2019 Plan during fiscal 2022.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
Annexure 4: Independent Auditor’s certificate on corporate governance
TO
THE MEMBERS OF INFOSYS LIMITED
INDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
REF: IL/2022-23/01
1. This certificate is issued in accordance with the terms of our engagement letter reference no. IL/2021-22/22 dated July 8, 2021.
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, 2022, 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, 2022.
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: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 22039826AGZWGP5582
93
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation Annexure 5 – Secretarial audit report for the financial year ended March 31, 2022
Form No. MR-3
(Pursuant to section 204(1) of the Companies Act, 2013 and Rule 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, 2022, 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, 2022 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 and Sweat Equity) Regulations, 2021;
(d) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(e) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018
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.
94
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 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 (Delistlng of Equity Shares) Regulations, 2021; and 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.
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:
The Company has bought back 5,58,07,337 fully paid up equity shares of face value of Rs 5 each on a proportionate basis, through the
Stock Exchange mechanism as prescribed under the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018.
The Company has extinguished all the Equity Shares purchased under the Buyback.
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 13, 2022
This report is to be read with Annexure A which forms an integral part of this report.
P.G.HEGDE
Hegde & Hegde
Company Secretaries
FCS: 1325 / C.P.No: 640
UDIN: F001325D000060560
95
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 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.
Place: Bengaluru
Date: April 13, 2022
P.G.HEGDE
Hegde & Hegde
Company Secretaries
FCS: 1325 / C.P.No: 640
UDIN: F001325D000060560
96
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 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. Our Corporate Social Responsibility
(“CSR”) encompasses holistic community development and
institution building, while shaping and sharing solutions
that serve the development of businesses and communities.
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 contributing to serving the development of people by
shaping a future with meaningful opportunities for all, thereby,
accelerating the sustainable development of society while
preserving the environment, and making our planet a better
place today and safeguarding it 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.
• Constructed multi-storied Dharamshala’s for patients and
attendants at the All India Institute of Medical Sciences
(AIIMS), Jhajjar, Haryana and Tata Memorial’s Advanced
Center for Treatment, Research and Education in Cancer
(ACTREC) campus in Navi Mumbai, Maharashtra
Provided ambulances to Kidwai Memorial Institute
of Oncology, Karnataka Institute of Medical Sciences,
Rashtrotthana Parishad, and Narayana Health, for timely and
emergency medical treatments
•
• Continued COVID-19 relief measures such as providing
•
medical treatment and equipment, distribution of food and
survival kits
Supported National Law School of India University for digital
inclusion efforts to democratize access to resources through
scholarships and ensuring access to people with disabilities
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
solely of independent directors, as at the end of fiscal 2022.
Name of the director
Designation / nature of directorship
Number of meetings
of CSR committee held
during the year
Number of meetings of
CSR committee attended
during the year
Kiran Mazumdar-Shaw
Lead Independent Director, chairperson of CSR
committee
U.B. Pravin Rao(1)
COO & Whole-time Director, member of CSR
committee
Chitra Nayak
Uri Levine(2)
Salil Parekh(3)
Independent Director, member of CSR committee
Independent Director, member of CSR committee
CEO & MD, member of CSR committee
4
3
4
NA
1
(1) Ceased to be a member of the Committee due to his retirement effective December 12, 2021
(2) Appointed as a member of the Committee effective January 13, 2022
(3) Appointed as a member of the Committee effective December 13, 2021, and ceased to be a member of the Committee effective January 12, 2022
Sl
no.
1.
2.
3.
4
5
4
3
4
NA
1
97
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 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 13, 2022, has approved the annual
action plan / projects for fiscal 2023, the details of which are available on our website, at https://www.infosys.com/investors/reports-
filings/documents/csr-projects2022-23.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 2022, which would require an impact
assessment to be carried out in pursuance to the above rule.
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): ` 19,834 crore
7. a. Two percent of average net profit of the Company as per Section 135(5): ` 396.70 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): ` 396.70 crore
8. (a) CSR amount spent or unspent for the financial year:
Total amount spent
for the financial year(1)
(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 unspent
Amount (in ` crore)
51.79
Date of transfer
Refer to Note
Name of the fund
NA
344.91
Amount
Nil
Date of transfer
NA
(1)
Includes a sum of ` 44 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.
98
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
(b) Details of CSR amount spent against ongoing projects for the financial year:
Name of the project
Sl.
no.
1
2
3
4
5
6
7
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
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
Construction of a 325-bed
hospital block at the Sri
Jayadeva Institute of
Cardiovascular Sciences &
Research
Smoke-free kitchen through
installation of biogas units
and promoting organic
farming
Construction of the 800-bed
Infosys Vishram Sadan at the
All India Institute of Medical
Sciences
Bangalore Metro Rail
Corporation Limited
(BMRCL)
Construction of a 100-bed
maternity and child care
hospital
Location of the project
State
District
Project
duration(1)
(in years)
Local
area
(Yes /
No)
Item
from the
list of
activities
in
Schedule
VII to the
Act
Amount
allocated
for the
project
in fiscal
2022 (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
(i), (xii)
No
Pan-India
Pan-India
2
81.65
46.94
34.71 No
Infosys
Foundation
CSR00004175
(i), (xii)
No
Pan-India
Pan-India
2
8.35
8.35
– Yes
Infosys
Limited
Not Applicable
(i), (iii)
Yes
Karnataka
Bengaluru
3
45.99
45.99
– No
Infosys
Foundation
CSR00004175
(iv)
Yes
Maharashtra Nagpur,
Bhandara
2
30.46
27.37
3.09 Yes
Infosys
Limited
Not applicable
(iii)
Yes
Haryana
Jhajjar
3
26.86
26.86
– No
(iv)
Yes
Karnataka
Bengaluru
(i), (iii)
Yes
Karnataka
Ramanagara
4
4
3
34.68
23.83
10.85 No
19.90
19.90
– No
15.50
15.50
– No
8
Aiding flood relief efforts
(xii)
Yes
Karnataka
Kodagu
9
9
Infosys
Foundation
CSR00004175
Infosys
Foundation
Infosys
Foundation
Infosys
Foundation
CSR00004175
CSR00004175
CSR00004175
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation Location of the project
State
District
Project
duration(1)
(in years)
1
0
0
Sl.
no.
Name of the project
9
Smoke-free kitchen
through the distribution
of high-efficiency biomass
cookstoves
Local
area
(Yes /
No)
Item
from the
list of
activities
in
Schedule
VII to the
Act
(iv)
Yes
Various
locations
Maharashtra,
Meghalaya,
Odisha,
Rajasthan
10 Construction of the
(i), (iii)
Yes
Maharashtra Mumbai
600-bed Infosys Asha Nivas
dharmashala at the Tata
Memorial Center
11 Construction of a hostel
(ii), (iii)
Yes
Tamil Nadu
Tiruchirappalli
(iv)
(ii)
Yes
Karnataka
Mysuru
Yes
Karnataka
Tumakuru
(ii)
Yes
Karnataka
(iv)
Yes
Karnataka
Dakshina
Kannada
Various
locations
(v)
Yes
Karnataka
Udupi
(vi)
Yes
Odisha
Khordha
for girls at the campus
of the Indian Institute of
Information Technology
12 Rejuvenation of lake
13 Construction of Skill
Development Training
Center and other facilities at
the Indian Red Cross Society
14 Construction of a school
building at the Chethana
Residential School
15
Smoke-free kitchen through
installation of biogas units
and promoting organic
farming
16 Construction of a Sabha
Bhavan to continue
and function leading to
promotion of Yakshagana
17 Construction of Rajya Sainik
Sadan for ex-servicemen for
their welfare considering
the service they have done
towards the country
18 Construction of new 75,000
sq.ft. out-patient block
at the Kidwai Memorial
Institute of Oncology(1)
Mode of
implementation
– Direct (Yes
/ No)
Mode of implementation –
Through implementing agency
Name
CSR registration
number
Amount
allocated
for the
project
in fiscal
2022 (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)
18.01
17.56
0.45 Yes
Infosys
Limited
Not applicable
21.44
21.44
– No
Infosys
Foundation
CSR00004175
7.63
7.63
– No
Infosys
Foundation
CSR00004175
7.00
6.09
0.91 Yes
5.12
5.12
– No
5.08
5.08
– No
5.00
4.22
0.78 Yes
Infosys
Limited
Infosys
Foundation
Not applicable
CSR00004175
Infosys
Foundation
CSR00004175
Infosys
Limited
Not applicable
4.20
4.20
– No
Infosys
Foundation
CSR00004175
4.12
4.12
– No
Infosys
Foundation
CSR00004175
2
4
3
2
4
3
4
4
3
(i), (iii)
Yes
Karnataka
Bengaluru
5
2.79
2.79
– No
Infosys
Foundation
CSR00004175
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation Name of the project
Sl.
no.
Location of the project
State
District
Project
duration(1)
(in years)
Local
area
(Yes /
No)
Item
from the
list of
activities
in
Schedule
VII to the
Act
Amount
allocated
for the
project
in fiscal
2022 (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
19 Granted funds to Khushi
Trust towards the
construction of training and
livelihood center
20 Construction of a world-
class visitor and animal-
friendly enclosure for
gorillas at Sri Chamarajendra
Zoological Gardens
(iii)
Yes
Karnataka
Raichur
(iv)
Yes
Karnataka
Mysuru
21 Construction of the second
(iv)
Yes
Karnataka
Mysuru
animal-friendly enclosure for
gorillas at Sri Chamarajendra
Zoological Gardens
22 Construction of a new,
(v)
Yes
Karnataka
Bengaluru
state-of-the-art museum at
the Art and Photography
Foundation
23 Construction of a
(ii), (iii)
Yes
Karnataka
Mysuru
multipurpose hall to be used
for training of vocational
skills at Shaktidhama Trust
24 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
25 Research for ‘Reimagining
India's Healthcare System’
26 Infosys Science Foundation
– Infrastructure support to
create a center of excellence
27 Granted funds for a mobile
eye clinic vehicle for
Ramakrishna Sevashrama
28 Support education of
children through ARPAN
1
0
1
(vi)
Yes
Delhi
New Delhi
(i)
(ii)
(i)
(ii)
Yes
Tamil Nadu
Vellore
Yes
Karnataka
Bengaluru
Yes
Karnataka
Pavagada
Yes
Punjab
Chandigarh
2
2
2
3
3
3
2
4
2
3
0.40
0.40
– No
Infosys
Foundation
CSR00004175
1.33
1.33
– No
Infosys
Foundation
CSR00004175
1.27
1.27
– No
Infosys
Foundation
CSR00004175
1.10
1.10
– No
Infosys
Foundation
CSR00004175
1.08
1.08
– No
Infosys
Foundation
CSR00004175
5.00
5.00
– No
Infosys
Foundation
CSR00004175
2.00
1.00
1.00 Yes
11.50
11.50
– Yes
0.26
0.26
– No
0.22
0.22
– No
Infosys
Limited
Infosys
Limited
Not applicable
Not applicable
Infosys
Foundation
Infosys
Foundation
CSR00004175
CSR00004175
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 1
0
2
Sl.
no.
Name of the project
Location of the project
State
District
Project
duration(1)
(in years)
Local
area
(Yes /
No)
Item
from the
list of
activities
in
Schedule
VII to the
Act
Amount
allocated
for the
project
in fiscal
2022 (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
29 Providing infrastructure to
(ii)
Yes
Karnataka
Bengaluru
the general public for sports
activities in Bengaluru
30 Support the Infosys
(ii)
Yes
Karnataka
Bengaluru
2
4
0.10
0.10
– No
0.85
0.85
– No
Infosys
Foundation
Infosys
Foundation
CSR00004175
CSR00004175
Foundation-PPBA
Champions Nurturing
Program to spot and train
talented youngsters in
badminton
31 Support the up-gradation
of Bharat Kala Bhavan
(museum), modernization of
15 galleries at Banaras Hindu
University(1)
(v)
No
Uttar
Pradesh
Varanasi
7
0.13
0.13
– No
Infosys
Foundation
CSR00004175
32 Construction of a protection
wall at Cherlopalli Zoo
(iv)
No
Andhra
Pradesh
Kurnool
33 Construction of a hostel
(ii), (iii)
Yes
Karnataka
Dharwad
for 300 girl students at
the Indian Institute of
Information Technology
34 Construction of a high
school building at the
Ramakrishna Mission
Shivanahalli
(i), (iii)
Yes
Karnataka
Bengaluru
35 Support the clean-up and
(iv)
Yes
Karnataka
Mandya
restoration of two water
bodies at a heritage site in
Mandya district
Total
4
4
4
4
0.38
0.38
0.07
0.07
– No
– No
Infosys
Foundation
Infosys
Foundation
CSR00004175
CSR00004175
0.57
0.57
– No
Infosys
Foundation
CSR00004175
0.05
0.05
– No
Infosys
Foundation
CSR00004175
370.09
318.30
51.79
(1) Project duration includes the years prior to when the CSR amendment rules were made effective. Post April 1, 2021 the ongoing projects are of duration as specified under the CSR amendment rules.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation (c) Details of CSR amount spent against other than ongoing projects for the financial year:
Name of the project
Sl.
no.
Item from the
list of activities
in Schedule VII
to the Act
Local
area
(Yes /
No)
Location of the project
State
District
Amount spent
for the project
(in ` crore)
Mode of
implementation
– Direct (Yes
/ No)
1
2
3
4
5
6
Aid training and research to help investigations
in the area of cybercrime
To support 50 smart schools and mid-day meals
for students through Ramakrishna Mission
Aiding flood relief efforts
(ii)
(x)
(xii)
Yes
Karnataka
Bengaluru
2.05 No
No
Yes
Arunachal Pradesh West
Siang
Karnataka, Andhra
Pradesh, Kerala,
Tamil Nadu,
Uttarakhand
Various
locations
1.65 No
4.17 No
Educating children in various rural districts
through eVidyaloka Trust
(ii), (x)
Yes
Karnataka
Bengaluru
1.00 No
Road construction at Mudipu
(x)
Yes
Karnataka
Projects less than ` 1 crore(1)
Total
Various
schedule VII
activities
No
Pan-India
Dakshina
Kannada
Pan-India
1.30 No
16.00
Implementing
Agency &
Direct
26.17
Mode of implementation –
Through implementing agency
Name
Infosys
Foundation
Infosys
Foundation
Infosys
Foundation
CSR registration
number
CSR00004175
CSR00004175
CSR00004175
CSR00004175
CSR00004175
CSR00004175
Infosys
Foundation
Infosys
Foundation
Infosys
Foundation /
Infosys
Limited
(1) Multiple small-scale CSR projects with an outflow of less than ` 1 crore, have been clubbed together.
(d) Amount spent in administrative overheads: ` 0.44 crore
(e) Amount spent on impact assessment, if applicable: Not applicable
(f) Total amount spent for the financial year (8b+8c+8d+8e): ` 344.91 crore
(g) Details of excess amount for set-off are as follows:
Sl. no. Particulars
2% of average net profit of the Company as per Section 135(5)
Total amount spent for the financial year
Excess amount spent for the financial year [(ii)-(i)]
Surplus arising out of the CSR projects or programs or activities of the previous financial years, if any
Amount available for set-off in succeeding financial years [(iii)-(iv)]
(i)
(ii)
(iii)
(iv)
(v)
1
0
3
in ` crore
Amount
396.70
344.91
NA
Nil
Nil
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 1
0
4
9. (a) Details of unspent CSR amount for the preceding three financial years:
Sl.
no.
Preceding
financial year
Amount transferred to unspent
CSR account under Section 135 (6)
Amount spent in the
reporting financial year
Amount transferred to any fund specified under Schedule VII
as per Section 135(6), if any
Amount remaining to be spent in
succeeding financial years
1
Fiscal 2021
Total
49.52
49.52
27.78 NA
27.78
NA
NA
21.74
21.74
Name of the fund
Amount
Date of transfer
in ` crore
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
Project ID
Name of the project
Sl.
no.
1
20MECAKAUR0020
2
20DECAHRRU0166
Construction of a 325-bed
hospital block at the Sri Jayadeva
Institute of Cardiovascular
Sciences & Research
Construction of the 800-bed
Infosys Vishram Sadan at the
All India Institute of Medical
Sciences
22RUCAKAUR0053
20MECAKAUR0021
Bangalore Metro Rail Corporation
Limited (BMRCL)
Construction of a 100-bed
maternity and child care hospital
22DEOPKARU0007
Aiding flood relief efforts
21COOPPIRU5002
19DECAKAUR0039
21EDCATNRU0215
9
20DECAKARU0245
10
21EDCAKARU0101
Smoke-free kitchen through the
distribution of high-efficiency
biomass cookstoves
Construction of the 600-bed
Infosys Asha Nivas dharmashala
at the Tata Memorial Center
Construction of a hostel for
girls at the campus of the
Indian Institute of Information
Technology
Construction of a skill
development training center and
other facilities at the Indian Red
Cross Society
Construction of a school building
at the Chethana Residential
School
3
4
5
6
7
8
Financial year in
which the project
was commenced
Project
duration(1)
Total amount
allocated for the
project (in ` crore)
Amount spent on
the project in the
reporting financial
year (in ` crore)
Cumulative amount
spent at the end of
reporting financial
year (in ` crore)
Status of the
project – Completed /
Ongoing
Fiscal 2020
3 years
89.39
45.99
89.39
Completed
Fiscal 2020
3 years
81.98
26.86
81.98
Completed
Fiscal 2019
4 years
180.00
23.83
Fiscal 2020
4 years
45.00
Fiscal 2021
Fiscal 2020
3 years
4 years
34.00
35.42
19.90
15.50
17.56
94.84
40.67
30.32
26.05
Ongoing
Ongoing
Ongoing
Ongoing
Fiscal 2019
4 years
62.46
21.44
62.46
Completed
Fiscal 2021
3 years
16.00
7.63
9.07
Ongoing
Fiscal 2020
4 years
14.00
5.12
8.07
Ongoing
Fiscal 2021
3 years
16.00
5.08
9.61
Ongoing
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
Project ID
Name of the project
Sl.
no.
11
20COOPKARU5001
12
21ALCAKARU0021
13
20DECAODUR0265
14
22MEOPKAUR0062
15
19DECAKAUR0194
16
20ALOPKAUR0241
17
20DECAKAUR0190
18
20EDOPKAUR0158
19
22ALOPUPUR0152
20
19EDOPKAUR2019
Smoke-free kitchen through
installation of biogas units and
promoting organic farming
Construction of a Sabha Bhavan
to continue and function leading
to promotion of Yakshagana
Construction of Rajya Sainik
Sadan for ex-servicemen for their
welfare considering the service
they have done towards the
country
Construction of new 75,000 sq.ft.
out-patient block at the Kidwai
Memorial Institute of Oncology
Construction of a world-class
visitor and animal-friendly
enclosure for gorillas at Sri
Chamarajendra Zoological
Gardens
Construction of a new, state-of-
the-art museum at the Art and
Photography Foundation
Construction of a multipurpose
hall to be used for training of
vocational skills at Shaktidhama
Trust
Support the Infosys Foundation-
PPBA Champions Nurturing
Program to spot and train
talented youngsters in
badminton
Support the up-gradation of
Bharat Kala Bhavan (museum),
and modernization of 15 galleries
at Banaras Hindu University
Support the Infosys Prize
program towards contemporary
research in the various branches
of science instituted by Infosys
Science Foundation
Financial year in
which the project
was commenced
Project
duration(1)
Total amount
allocated for the
project (in ` crore)
Amount spent on
the project in the
reporting financial
year (in ` crore)
Cumulative amount
spent at the end of
reporting financial
year (in ` crore)
Status of the
project – Completed /
Ongoing
Fiscal 2020
4 years
42.14
4.22
31.59
Ongoing
Fiscal 2020
4 years
12.00
4.20
4.85
Ongoing
Fiscal 2020
3 years
6.23
4.12
6.23
Completed
Fiscal 2018
5 years
25.98
2.79
25.98
Completed
Fiscal 2021
2 years
2.45
1.33
2.45
Completed
Fiscal 2020
3 years
4.10
1.10
Fiscal 2020
3 years
2.47
1.08
4.10
2.47
Completed
Completed
Fiscal 2020
4 years
11.30
0.85
1.15
Ongoing
Fiscal 2017
7 years
3.63
0.13
2.13
Ongoing
Fiscal 2019
4 years
75.50
11.50
75.50
Completed
Total
1
0
5
760.05
220.23
608.91
(1) Project duration includes the years prior to when the CSR amendment rules were made effective. Post April 1, 2021 the ongoing projects are of duration as specified under the CSR amendment rules.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
1
0
6
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:
Date of creation or
acquisition of the capital
asset(s)
Amount of CSR spent for creation
or acquisition of capital asset –
Fiscal 2022 (in ` crore)
Details of the entity or public authority or beneficiary
under whose name such capital asset is registered, their
address etc.
Details of the capital asset(s) created or acquired (including
complete address and location of the capital asset)
(a)
Nov 17, 2021
Apr 1, 2021 to
Mar 31, 2022
Oct 21, 2021
Oct 7, 2021
(b)
45.99
42.64
26.86
21.44
Mar 18, 2022
11.50
Dec 30, 2021
4.12
Apr 1, 2021 to
Mar 31, 2022
2.88
Aug 23, 2021
2.79
Nov 18, 2021
1.33
Mar 31, 2022
1.08
Oct 27, 2021
1.30
(c)
(d)
Sri Jayadeva Institute of Cardiovascular Sciences &
Research
Address: Jayanagar 9th Block, Bannerghatta, Bengaluru,
Karnataka 560 069
Hospital block
Address: Jayanagar 9th Block, Bannerghatta, Bengaluru,
Karnataka 560 069
Various beneficiaries
Address: Pan-India
Facilitating COVID-19 relief efforts by providing essential
medical equipment and infrastructure to various hospitals
Address: Pan-India
All India Institute of Medical Sciences
Address: Ansari Nagar, New Delhi 110 029
Dharmashala (public resthouse)
Address: Ansari Nagar, New Delhi 110 029
Tata Memorial Center
Address: Dr. Ernest Borges Marg, Parel, Mumbai
Maharashtra 400 102
Infosys Science Foundation
Address: South End Circle, Jayanagar, Bengaluru,
Karnataka 560 004
Dharmashala (public resthouse)
Address: Dr. Ernest Borges Marg, Parel, Mumbai
Maharashtra 400 102
Academic and research block
Address: South End Circle, Jayanagar, Bengaluru,
Karnataka 560 004
Rajya Sainik Board
Address: Nageshwar Tangi, Lewis Road, Bhubaneswar,
Khurdh, Odisha 751 002
Sainik Welfare Block
Address: Nageshwar Tangi, Lewis Road, Bhubaneswar,
Khurdh, Odisha 751 002
Various beneficiaries
Address: Uttara Kannada; Dakshina Kannada; Udupi;
Shimoga
Biogas units for smoke-free kitchens
Address: Uttara Kannada; Dakshina Kannada; Udupi;
Shimoga
Kidwai Memorial Institute of Oncology
Address: Dr M H, Marigowda Rd, Hombegowda Nagar,
Bengaluru, Karnataka 560 029
OPD block
Address: Dr M H, Marigowda Rd, Hombegowda Nagar,
Bengaluru, Karnataka 560 029
Sri Chamarajendra Zoological Gardens
Address: Zoo Main Road, Indira Nagar, Ittige Gudu, Mysuru,
Karnataka 570 010
Animal enclosure
Address: Zoo Main Road, Indira Nagar, Ittige Gudu, Mysuru,
Karnataka 570 010
Shakthidhama Women rehabilitation center
Address: No, 18/1B, Opposite JSS College, Ooty Nanjangud
Road, Mysuru, Karnataka 570 025
Multipurpose hall
Address: No, 18/1B, Opposite JSS College, Ooty Nanjangud
Road, Mysuru, Karnataka 570 025
Kurnadu Gram Panchayat
Address: Kurnadu Gram Panchayat, Bantwal Taluk,
Dakshina Kannada District
Road construction – Mudipu
Address: Kurnadu Gram Panchayat, Bantwal Taluk,
Dakshina Kannada District
Notes: Details of CSR Projects less than 1 crore will be made available on the website, at https://www.infosys.com/investors/reports-filings/documents/csr-capital-assets2021-22.pdf
Includes projects which have been completed in fiscal 2022
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required to transfer its CSR capital assets
created prior to January 2021. Towards this, the Company had incorporated a controlled subsidiary, ‘Infosys Green Forum’ under Section 8 of the Companies Act, 2013. During
the year ended March 31, 2022, the Company has completed the transfer of assets upon obtaining the required approvals from regulatory authorities, as applicable.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
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 2022, the Company has
spent ` 344.91 crore on various projects. The unspent balance of ` 51.79 crore is towards various ongoing projects mainly related to COVID-19 relief efforts and will be
transferred to the unspent CSR account and spent in accordance with the CSR Amendment Rules.
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
2022 are provided in the Corporate governance report. The expenditure made towards CSR in Australia, Europe and through Infosys Foundation USA is as follows:
in US$
Amount
486,705
100,974
974,085
491,577
948,475
37,329
151,086
3,190,231
Sd/-
Sd/-
Kiran Mazumdar-Shaw
Chairperson, CSR Committee
Salil Parekh
Chief Executive Officer and
Managing Director
Focus area
Advocacy and awareness
Classroom aids and technology
Research and curriculum
Student education and services
Teacher training
Flood relief
Operating expenses
Total
Bengaluru
April 13, 2022
1
0
7
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 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 for three years in a row
since fiscal 2020, across all emissions, as per PAS 2060:2014
standards. We continue to remain carbon-neutral for fiscal 2022.
Our detailed, independently assured ESG Report will be available
at https://www.infosys.com/sustainability/documents/infosys-
esg-report-2021-22.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 to ensure a healthy environment
and equitable distribution in society. At Infosys, what started
as a simple energy-metering exercise in 2008 to identify
wastage and opportunities for savings resulted in one of the
largest enterprise-level resource conservation initiatives.
Super-efficient new buildings, deep retrofits in existing
buildings, smart automation, water management initiatives and
waste management projects have contributed to reducing our
environmental impact significantly. We have been able to grow
our business in a sustainable manner, following the principle of
circularity and efficient use of resources.
Investments in renewable energy have helped in reducing our
emissions, and high-impact carbon offset projects have enabled
us to offset our un-avoidable emissions.
Energy: Our new buildings continue to push the boundaries
of innovation and efficiency, setting an example for the
industry. 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 33.81 million
sq. ft. of space. This has helped us manage our operations
efficiently and uninterrupted in the current situation caused by
the pandemic, ensuring the health and safety of employees as
well as operations personnel.
Initiatives: Retrofits of existing data center UPS with modular
types in data center to reduce PUE, constant monitoring,
analysis of the work station UPS were undertaken during
the year. We were able to optimize HVAC operation through
consolidation of buildings.
Energy-efficiency retrofits have helped us reduce our connected
load over the years by over 34.82 MW. 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 ` 4 crore in fiscal 2022.
Renewable energy: We have a total capacity of 60 MW of solar PV,
including rooftop and ground-mounted systems. We continue to
108
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 2022, our new buildings in Bengaluru,
Mysuru and Thiruvananthapuram in India and Indianapolis in
the US were awarded the LEED Platinum certification from the
US Green Building Council. We also received the IGBC (Indian
Green Building Council) Platinum certification for our buildings
in Chennai and Bhubaneswar. With this, we now have 45 projects
at Infosys with the highest level of green building certification,
spanning a total area of 28.61 million sq.ft. An additional 2.1
million sq.ft. of our projects is currently undergoing green
building certification.
Healthy and efficient workspace: A retrofit program to enhance
the availability of fresh air in the air conditioning systems in office
buildings was implemented across Infosys, to improve air quality
and provide healthy workspaces for employees. This would
also reduce the spread of infections in general. The reference
for this program was the World Health Organization roadmap
to improve and ensure good ventilation, in the context of
COVID-19. During this retrofit, automation was also taken up to
monitor key parameters on air quality in offices, and to make sure
the buildings’ systems like air conditioning and lighting were
perfectly synchronized with the requirement, thereby saving
significant energy. Over 15 million sq.ft. of office buildings have
been retrofitted under this program.
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. The highlight of our efforts has been harvesting
and reuse of rainwater through lakes, recharge wells and rooftop
rainwater collection, which reduces dependency on external
sources and has a positive impact on the water table.
Waste management: We continue to pursue our goal of
minimizing waste going to landfills. We work with vendors who
further segregate the mixed waste generated on our campuses
and help divert the waste from landfills. Organic waste, such as
food waste and garden waste, is treated within our campuses.
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.
Carbon offsets: Infosys continues to identify and work on issues
in rural India that also offer the 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, work from home, transmission and
distribution loss etc. While Infosys continues to have a choice
to offset through carbon credits that are offered in the market,
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review we have made the choice to get involved in every action aimed
to reduce and / or avoid emissions. This year, we added two
new cookstove projects in Rajasthan and Maharashtra and one
integrated project in Meghalaya. With these, we have a total
of seven fully-commissioned carbon offset projects and five
projects are under various implementation stages totaling
to 12 carbon offset projects as of fiscal 2022. These include
seven cookstove projects, three biogas projects, one rural
electrification project and one integrated project (household
solar electrification, cookstove, public health center and solar
street lighting) across six states in India.
Upon completion, these projects will benefit over 2,30,000
families. As of fiscal 2022, we have extended our project coverage
to over 1,84,000 families, while also creating over 2,800 jobs.
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 three years. It had to be a mobile-first
approach so that employees were connected to the organization
wherever they were in the world and could access the
organization’s assets to learn and contribute. The response has
been phenomenal – the InfyMe mobile app, with 250+ features,
has been downloaded by more than 2,78,000 users, and more
than 44,000 users have rated it 4.7/5 on Google Play Store. With
process bursting, we have seen many of our key processes
become faster and more responsive and the Live Enterprise
platform has itself been built on the latest open source stack.
After the internal success, we are also seeing interest for the
platform among our clients as seven clients have already been
onboarded and many more are in discussions.
To enable this, our core backend infrastructure was transformed
to host modern applications, using the scalability of cloud,
security of on-premise in rastructure 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
provided 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 the 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 such as 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 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
the IT Support team.
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 65% of the internal
computer workload has been migrated to public cloud.
More than three lakh employees have been enabled for cloud-
based collaboration platform for messaging, presence, video,
and other requirements.
109
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 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.
InfosysIT has made focussed investment on Datacenter
Infrastructure Management (DCIM) tools to get accurate visibility
across the entire Datacenter IT and Facility stack, which is the
foundation to be able to do everything else.
DCIM provides environmental (temperature, humidity, air
flow), power (at the device, rack, zone and datacenter level)
and cooling data. This information can be used to alert the
management when thresholds are exceeded, reducing repair
Awards and recognition – Information systems
time and increasing availability. In addition, datacenter standards
are revised with a focus on delivering industry leading PUE and
will be integrated with DCIM through Smart PDUs for providing a
unified view of IT and facility subsystems.
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 681.88 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%.
Award
Theme
Award sponsor (Company)
TechCircle
Business Transformation
Excellence in digital execution – Workforce transformation
MINT | Tech Circle
CIO 100 by IDG Award
Using IT in innovative ways to deliver business value
CIO 100 Global
CII DX Awards
Digital business growth through technology innovation
Implementing IT solutions, policy and technologies in
innovative and sustainable way
IDG / Foundry
IDG / Foundry
CII
Innovative CIO
Innovative IT project
CIO Axis – BitStream Media-works Pvt. Ltd
Research and development (R&D) expenditure – standalone
in ` crore
Revenue expenditure
Capital expenditure
Total
R&D expenditure / revenue (%)
2022
2021
Future plan of action
529
508
12
4
541
512
0.5
0.6
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)
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.
NFE / earnings (%)
2022
2021
in ` crore
1,01,854
84,252
57,224
46,433
44,630
37,819
43.8
44.9
Bengaluru
April 13, 2022
110
for and on behalf of the Board of Directors
Sd/-
Sd/-
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and
Managing Director
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportApproaching value creationStrategy review 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 13, 2022, the Board revised and adopted some of the policies.
Key policies that have been adopted are as follows:
Name of the policy
Brief description
Web link
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
The Company has adopted a whistleblower mechanism 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 January 12, 2022.
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 October 13, 2021.
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 and adopted effective April 13, 2022.
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 13, 2022.
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 13, 2022.
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
1
1
1
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation 1
1
2
Name of the policy
Brief description
Corporate Social
Responsibility Policy
Policy on Material Subsidiaries
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 January 14, 2021.
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.
Related Party
Transactions Policy
The policy regulates all transactions between the Company and its related
parties. The policy was revised and adopted effective April 13, 2022.
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
Document Retention and
Archival Policy
The policy deals with the retention and archival of corporate records of
Infosys Limited and all its subsidiaries. The policy was revised and adopted
effective April 13, 2022.
https://www.infosys.com/investors/
corporate-governance/Documents/document-
retention-archival-policy.pdf
Board Diversity Policy
Enterprise
Risk Management Policy-
The policy sets out the approach to diversity on the Board of the Company.
The policy was revised and adopted effective April 13, 2022.
https://www.infosys.com/investors/corporate-
governance/documents/board-diversity-policy.pdf
This Policy is to institutionalize a formal risk management function and
framework in the company. This policy is drafted in accordance with the
guidelines provided under the Charter of the Risk Management Committee
of the Board of Directors, and pursuant to Regulation 21 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 as amended. The
policy was revised and adopted effective April 13, 2022
https://www.infosys.com/investors/corporate-
governance/documents/enterprise-risk-
management-policy.pdf
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsAnnexures to the Board’s reportStrategy reviewApproaching value creation
Introduction
Approaching
value creation
Strategy
review
Delivering
value
Governance
Statutory
reports
Financial
statements
BRSR
Management’s discussion
and analysis
Management’s discussion and analysis
Overview
Infosys is a leading provider of consulting, technology, outsourcing and next-generation digital services, enabling clients in 54 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.
Infosys Integrated Annual Report 2021-22
113
I.
Industry structure and developments
Software and computing technology are transforming
businesses in every industry around the world in a profound
and fundamental way. During fiscal 2022, we witnessed
an acceleration in the adoption of digital technologies as
businesses attempted 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.
For more information, refer to the Operating context section of
the Integrated Report.
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 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:
•
•
•
•
Scale agile digital
Energize the core
Reskill our people
Expand localization
For more information, refer to the Strategy section of
the Integrated report.
COVID-19
At Infosys, as we continue in our endeavor to fight waves of
the COVID-19 pandemic, our priority remains the safety and
well-being of our employees, and business continuity for our
clients. Business continuity programs were tested and practiced,
and the processes were proven to be resilient. We received the
ISO 22301 Business Continuity Management System certification
for being a company with resilient processes.
For details of our COVID-19 initiatives, refer to the Board’s report
in this Integrated Annual Report.
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.
114
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 industry-specific domain and technology
expertise, and capabilities 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 Cobalt™,
Finacle®, McCamish, Panaya, Meridian, Helix, Infosys Equinox,
Wingspan, the Edge suite of products, Stater, Infosys Applied AI,
CyberNext, Infosys Cortex and Infosys Live Enterprise Application
Suite, which either amplify our own services or provide
differentiated solutions for our clients’ business processes.
We have continued to invest in Infosys Cobalt™ – a set of services,
solutions and platforms for enterprises to accelerate their cloud
journey. It offers 35,000 cloud assets and over 300 industry cloud
solution blueprints.
We launched Infosys Equinox, our flagship digital commerce
platform, a set of core microservices encompassing all
digital commerce scenarios. This enables enterprises to
rapidly build and deploy features across all touchpoints and
channels, without the friction and challenges associated with
existing legacy platforms.
We have perfected sophisticated service delivery and quality
control processes, standards and frameworks, which 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.
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 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.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation 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.
We potentially see emerging competition to our services
from niche software-as-a-service companies, cloud platform
companies and, insourcing of technology services by the
technology departments of our clients.
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. 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.
Refer to the Standalone and Consolidated financial statements in
this Integrated Annual Report for detailed schedules and notes.
1. Equity share capital
We have one class of shares – equity shares of par value ` 5 each.
During the year, the movement in share capital was primarily
on account of buyback of 5,58,07,337 shares resulting in a cash
outflow of ` 9,200 crore.
2. Other equity comprises mainly reserves and surplus
and other comprehensive income
The movement in retained earnings was on account of profit
earned during the year, payment of dividends and buyback
of equity. Changes in securities premium are mainly due
to a decrease on account of the buyback of equity shares
and an increase on account of the exercise of stock options.
On a standalone level, other reserves include profit on
transfer of business between entities under common control.
The Group has made an irrevocable election to present the
subsequent changes in fair value of certain instruments in other
comprehensive income.
3. Property, plant and equipment
Additions to gross block were on buildings, plant and machinery,
land acquired primarily in Bengaluru, Hiriyur and Hyderabad
in the current year and primarily in Bengaluru, Tumakuru and
Hyderabad in the previous year.
4. Goodwill and other intangible assets
There was no addition to goodwill and other intangible assets
in the current year.
5. Financial assets
A. Investments
On a standalone level, during the year, we invested additionally
in our subsidiaries for operations and expansions.
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.
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.
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 our
risk management program.
B. Trade receivables
Days Sales Outstanding has reduced to 67 days in the current
year from 71 days in the previous year due to the Management’s
strong focus on ensuring timely collection from clients.
C. Cash and cash equivalents
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
We provide personal loans and salary advances to employees and
loans to subsidiaries as per business requirement on a need base.
115
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation 10. Other liabilities
Withholding and other taxes payable represent local taxes
payable in various countries in which we operate. Invoicing
in excess of revenues are classified as unearned revenues.
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 Company operates defined benefit pension plan in certain
overseas jurisdictions, in accordance with local laws. These plans
are managed by third-party fund managers.
11. Provisions
Provision for post-sales client support is towards likely
cost for providing client support to fixed-price and
fixed-timeframe contracts.
12. Leases
Additions mainly comprise lease of computers and building
taken on lease in certain locations outside India.
IV. Results of our operations
The function-wise classification of the Standalone Statement of
Profit and Loss is as follows:
in ` crore
Particulars
Year ended March 31,
Revenue from operations
1,03,940
100.0
85,912
100.0
2022
%
2021
%
Cost of sales
Gross profit
Operating expenses
69,629
34,311
67.0
33.0
55,541
30,371
64.6
35.4
Selling and marketing
expenses
General and
administration expenses
4,125
4.0
3,676
4.3
4,787
4.6
4,559
5.3
Total operating expenses
8,912
8.6
8,235
9.6
Operating profit
25,399
24.4
22,136
25.8
Finance cost
Other income, net
Profit before tax
Tax expense
Profit for the year
128
3,224
0.1
3.1
126
2,467
0.1
2.8
28,495
27.4
24,477
28.5
7,260
7.0
6,429
21,235
20.4
18,048
7.5
21.0
E. Other financial assets
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. 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.
6. Other assets
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. Deferred
contract cost mainly comprises the cost of obtaining a contract
and the cost of fulfilling a contract recorded in accordance with
Ind AS 115, Revenue from Contracts with Customers. 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
Net deferred tax asset comprising deferred tax assets less
deferred tax liabilities has decreased primarily on account of
temporary difference on Special Economic Zone Reinvestment
Reserve, property, plant and equipment and on branch profit tax
partially offset by deferred tax asset on credits related to branch
profits and intangible assets.
8. Income tax assets / liabilities
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
Liabilities for accrued compensation to employees include the
provision for bonus, accrued salaries, incentives and retention
bonus payable to the staff. 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.
Other financial liability includes financing arrangements entered
into by the Company with a third party towards deferred
contract cost assets.
116
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation 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
1. Revenue
The growth in our revenues in fiscal 2022 from fiscal 2021 is as follows:
Year ended March 31,
2022
%
2021
1,21,641
100.0
1,00,472
81,998
39,643
5,156
6,472
11,628
28,015
220
2,295
30,110
7,964
22,146
36
22,110
67.4
32.6
4.2
5.4
9.6
23.0
0.2
2.0
24.8
6.6
18.2
0.0
18.2
65,413
35,059
4,627
5,810
10,437
24,622
195
2,201
26,628
7,205
19,423
72
19,351
in ` crore
%
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
in ` crore
Particulars
Revenue
Standalone
Consolidated
2022
1,03,940
2021
85,912
% change
21.0
2022
1,21,641
2021
1,00,472
% change
21.1
The increase in revenues was primarily attributable to an increase in digital revenues, deal wins including large deals and volume
increases across most of the segments.
The revenues from digital and core services for fiscals 2022 and 2021 are as follows:
Particulars
Digital revenue
Core revenue
Consolidated
2021
48,687
51,785
2022
69,404
52,237
in ` crore
% change
42.6
0.9
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 2022
is US$ 16,311 million, a growth of 20.3%. Our revenues for fiscal 2022 in constant currency grew by 19.7%.
We added 451 new customers (gross) during fiscal 2022 as compared to 475 new customers (gross) during fiscal 2021.
On a consolidated basis, for the years ended March 31, 2022 and March 31, 2021, approximately 97.1% were export revenues whereas
2.9% were domestic revenues.
Refer to the ‘Segmental profitability’ section in this report for more details on the analysis of segment revenues.
117
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation 2. Expenditure
Cost of sales
The cost of efforts, comprising employee cost and cost of
technical sub-contractors, has increased as a percentage of
revenue from 58.3% in fiscal 2021 to 60.7% in fiscal 2022 on a
standalone basis and from 56.3% in fiscal 2021 to 57.6% in fiscal
2022 on a consolidated basis. The cost of efforts has increased
mainly on account of compensation increase and increase in
sub-contractors cost offset by improvement in offshore mix.
Third-party items bought for service delivery to clients include
software and hardware items.
Selling and marketing expenses
The selling and marketing expenses on standalone and
consolidated basis have reduced as a percentage of revenue
during fiscal 2022 to 4.0% from 4.3% in fiscal 2021, and 4.2%
during fiscal 2022 from 4.6% in fiscal 2021, mainly on account
of a decrease in employee benefit costs offset by increase in
branding and marketing expenses and professional charges.
General and administration expenses
The general and administration expenses on standalone and
consolidated basis have reduced as a percentage of revenue
during fiscal 2022 to 4.6% from 5.3% in fiscal 2021, and 5.3%
during fiscal 2022 from 5.8% in fiscal 2021, respectively, mainly on
account of a decrease in employee benefit costs, communication
costs, repairs and maintenance partially offset by increase in
consulting and professional expenses.
3. Other income and finance cost
Other income primarily includes income from investments gain /
loss on investments, foreign exchange gain / loss on forward and
options contracts and foreign exchange gain / loss on translation
of other assets and liabilities. In the current year, the Company
received ` 1,218 crore of dividend from its subsidiary, which is
reflected in the Standalone financial statements.
Interest income in fiscal 2022 has declined as compared to
fiscal 2021 primarily due to a decrease in yield on investments
and decrease in investable base. We use foreign exchange
Business segments – Consolidated
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.
4. 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, 2022, and March 31, 2021 is 34.94%.
Particulars
Standalone
Consolidated
Income tax expense
(in ` crore)
2022
2021
7,260
6,429
2022
7,964
2021
7,205
Effective tax rate (in %)
25.5
26.3
26.4
27.1
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 primarily
on account of adjudication of certain disputed matters in favor
of the Company and upon filing of tax return across various
jurisdictions and other tax deductions.
5. 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 2.26 to the Consolidated financial statements in this
Integrated Annual Report.
Retail Communication
Energy, Utilities,
Resources and Services
Manufacturing Hi-Tech
Life
Sciences
All other
segments
in ` crore
Total
Particulars
Financial
Services
Segmental revenues
2022
2021
Growth %
38,902
32,583
19.4
Segmental operating income
2022
2021
Growth %
10,314
8,946
15.3
17,734
14,745
20.3
6,130
5,117
19.8
Segmental operating margin (%)
2022
2021
118
26.5
27.5
34.6
34.7
15,182
12,628
20.2
3,372
2,795
20.6
22.2
22.1
14,484
12,539
15.5
4,225
3,552
18.9
29.2
28.3
13,336
10,036
9,447
8,560
41.2
17.2
2,408
2,563
(6.0)
2,495
2,454
1.7
8,517
6,870
24.0
2,308
2,156
10.4
3,450 1,21,641
3,100 1,00,472
11.3
21.1
167
306
31,491
27,889
(45.4)
12.9
18.1
27.1
24.9
28.7
27.9
31.4
4.8
9.9
25.9
27.8
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation The following graph sets forth our revenue by geography:
The Company has identified the following ratios as
key financial ratios:
75,058 (61.7%)
12,869 (10.6%)
3,585 (2.9%)
30,129 (24.8%)
2022
1,21,641
61,640 (61.3%)
11,630 (11.6%)
2,899 (2.9%)
24,303 (24.2%)
Growth in %
North America - 21.8%
India - 23.7%
Europe - 24.0%
Rest of the World - 10.7%
2021
1,00,472
Total growth
21.1%
Overall segment profitability has decreased primarily on account
of increase in employee compensation, higher cost of technical
sub-contractors and third-party items bought for service delivery
to clients, drop in realization partially offset by increase in
utilization, benefit on account of cost optimization initiatives,
scale benefits and currency fluctuations.
6. 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.
Our cash flows are robust and our operating cash flows have
increased in fiscal 2022 as compared to fiscal 2021 mainly on
account of increase in net profit adjusted for non-cash items
partially offset by higher income tax payments.
Consolidated cash and investments of ` 37,419 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 Integrated Annual Report
for details on our Capital Allocation Policy reviewed and
approved on July 12, 2019.
Particulars
Standalone
Consolidated
Market capitalization to
revenues (times)
Price / Earnings (times)
Days sales outstanding(1)
Cash and investment(2) as
a % of total assets
Revenue growth (%)
Operating margin (%)
Net profit margin (%)
2022
NA
2021
NA
2022
6.6
2021
5.8
NA
–
30.1
20.9
24.4
20.4
NA
–
32.7
8.7
25.8
21.0
36.3
67
31.7
21.1
23.0
18.2
30.0
71
35.7
10.7
24.5
19.3
Basic EPS (`)
50.27
42.37
52.52
45.61
(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
2021 to fiscal 2022
Revenue growth has been explained in the relevant
sections above.
The details of return on net worth at standalone and
consolidated levels are as follows:
Particulars
Standalone
Consolidated
Return on net worth (%)
2022
30.2
2021
27.0
2022
29.1
2021
27.3
Net profit has increased from ` 19,351 crore to ` 22,110 crore on a
consolidated basis and from ` 18,048 crore to ` 21,235 crore on a
standalone basis which has resulted in increase in the return on
net worth. Average net worth hasn’t increased at the same rate as
increase in net profits due to better Balance Sheet management
resulting from shareholder payouts like buyback and dividend.
V. Outlook, risks and concerns
7. Related party transactions
These have been discussed in detail in Note 2.24 to the
Standalone financial statements in this Integrated Annual Report.
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:
8. 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.
9. 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.
Risks related to global COVID-19 health pandemic and
post-pandemic resilience:
The COVID-19 pandemic is a global humanitarian and health
crisis, that continues to impact key geographies that we operate
in, with many countries reporting multiple waves of infections.
The actions taken by various governments to contain the
pandemic, such as closing of borders and lockdown restrictions,
has resulted in significant disruption to people and businesses.
While vaccines have been made available, there are increased
instances of variants and infections, and consequential stress
on the health sector. India, where most of our operations are
119
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation located, has experienced multiple waves of infections, including
new variants of the COVID-19 virus. There was 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 were adversely affected. We have initiated
several interventions to help our employees and their families,
including establishing COVID Care Centers, vaccination centers
and providing them medical loans and access to medical
care facilities. However, the continued stress on the medical
infrastructure and any increase in the cases in India may impact
the health and safety of our employees.
The COVID-19 pandemic has impacted, and may further impact,
all of our stakeholders – employees, clients, vendors, investors
and the communities we operate in. During fiscal 2022, the
impact on our revenue due to supply and demand risks we
experienced from the COVID-19 pandemic was not significant.
COVID-19 pandemic has heightened several other risks that are
described in this section:
• Client contractual terms restricting our ability to offer a
hybrid working model to our employees, which may lead to
increased attrition;
Restrictions on travel may impact our ability to sell and
deliver our services to Clients, thereby impacting our revenue
and / or profitability;
Impact on profitability and cash flows as some clients may
ask for price reductions, discounts or longer payment terms;
Impact on business continuity due to local lockdown in the
key geographies in which we operate;
•
•
•
• Additional cost to ensure safety and hygienic workplaces
for our employees and to convert them for a hybrid
working model;
• Additional costs to procure and deploy hardware assets,
•
•
technology infrastructure, information security infrastructure
and data connectivity charges for remote working;
Impact on revenue and sub-optimal branding due to
localized lockdowns or restrictions on travel, marketing
events and in-person client meetings due to future
COVID-19 waves;
Increased penalties or litigation initiated by clients if we fail
to meet project quality, productivity and scheduled service
level agreements due to our employees working remotely;
•
•
• Negative impact on profitability if fixed or committed costs
are not reduced in line with reduced demand. Sudden
change in demand may change utilization thus impacting
profit margin;
Impact on profitability as clients may refuse to recognize
unbilled revenues during COVID-19 pandemic;
Increased exposure to cyber security and data privacy breach
incidents may continue due to a large number of employees
working remotely.
The productivity of our employees may be negatively
impacted due to extended remote work, quarantine
requirements, negative social sentiment and
personal anxiety;
Impact on fulfilment if any of some of our employees and or
their families are impacted by future COVID-19 waves;
•
•
120
• Continued employee preference to work out of remote
locations on a long-term basis, together with expectations
from clients to return to office, if not managed adequately,
may impact attrition, client satisfaction, and our ability to
grow profitably;
• We could be subject to lawsuits from our employees alleging
they are exposed to health risks as we transition them back to
working out of our clients’ offices;
• Our ability to procure goods and services may be impacted as
some of our suppliers may not be able to operate efficiently
during a lockdown;
• Unfavorable currency movements accentuated due to
COVID-19 may impact our profitability;
• An increase in insurance premiums may adversely impact our
profitable growth or coverage;
•
•
•
• Heightened regional or macro risks, such as an increase in
unemployment, protectionism and changing immigration
regulations;
Lack of comprehensive assessment to test the level of skills of
students may impact quality of our hiring;
Reduced value of PSUs / RSUs due to stock price returns
being depressed from a prolonged pandemic;
Prolonged continuation of the COVID-19 pandemic
may create breakdown in our Business Continuity
Procedures (BCP);
Potential impairment of acquired entities and investments as
a result of prolonged slower economic growth may impact
business momentum and synergies that were expected; and
• We may be unable to recoup the investments made in various
geographies due to the impact of a prolonged economic
downturn.
•
Some of the other key risks that the Company is facing
are as follows:
I. Risks related to the markets in which we and our clients
operate
•
Spending on technology products and services by our clients
and prospective clients fluctuates depending on many
factors, including the economic, geo-political, monetary and
fiscal policies and regulatory environment in the markets in
which they operate.
• An 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 which are adversely
impacted by climate change which could consequently
impact our business and reputation.
Restrictions on visas, cost increases in obtaining such
visas, increases in required minimum wage levels for visa
dependent employees, inordinate delays in obtaining visas
due to the pandemic and/ or increased enforcement in
different countries 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
financial condition.
• Our clients may be the subject of economic or other
sanctions by governments and regulators in key geographies
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation that we operate in, limiting our ability to grow these
relationships and risking increased penalties and exposure of
our business to consequential sanctions.
• A large part of our revenues are 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 be affected owing to
several factors such as demand and supply challenges,
currency fluctuations, regulatory sanctions, geo-political
conflicts 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
for 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 our profits.
• Our engagements with clients are typically singular in nature
and do not necessarily provide for subsequent engagements.
II. 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.
III. 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 in creating physical and
technological 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 and yield on cash balances.
IV. 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 in large part upon our management
team and key personnel and our ability to attract and
retain them.
V. 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 conditional 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.
Inability to execute contracts and / or amendments with
clients on a timely basis can impact our revenue & profit,
causing fluctuations in our reported results
VI. 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 cyber security 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
European Union (“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, which
could adversely affect 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.
•
•
•
• Climate change risks are increasingly manifesting in our
business as strategic risks, 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
goals under our 2030 Environmental, Social and Governance
(ESG) vision.
121
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation • 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.
VII. Risks related to legislation and regulatory compliance
•
Initially, the COVID-19 pandemic led to substantial increases
in unemployment rates across certain countries in which we
operate, including the United States, United Kingdom, EU and
Australia. A key risk at that time was widespread enactment
of restrictive legislation and regulations which would 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 United States. 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 Reserve Bank of India and 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.
•
VIII. 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.
122
•
•
Sales of our equity shares may adversely affect the prices of
our equity shares and ADSs.
The price of our ADSs and the U.S. dollar value of any
dividends we declare may be negatively affected by
fluctuations in the U.S. dollar to Indian rupee exchange rate.
• An investor in our ADSs may not be able to exercise
pre-emptive 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 buy-back of shares offered by us.
It may be difficult for holders of our ADSs to enforce any
judgment obtained in the United States 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
adversely 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 Integrated Annual Report discusses
the adequacy of our internal control systems and procedures.
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
Infosys is not a technology company full of people, but a people
company that understands the immense potential of technology.
Our people, with a little ‘digital’ help, move our clients forward
and in turn, the world. Thus, it is our constant endeavor to make
Infosys a place where people can be their best selves.
Careers don’t stand still at Infosys and talent transformation is
an important focus area. It begins with sensing employee needs
and responding with a value proposition that delivers meaning,
purpose and value for them. It builds synergy between how we
look to differentiate ourselves as a Company and deliver on the
expectations of our employees.
We have a three-pronged strategy to deliver value to
our employees:
•
Inspire our people with meaningful work and passionate
teams, enabling them to find purpose and make an
indelible impact.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation •
Ensure that our people are continuously learning
and progressing in their careers, and shaping our
collective future.
• Create opportunities for every employee to navigate further,
powered by our culture and partnered by other Infoscions
with shared aspirations.
Here are the key initiatives of this year:
•
•
•
•
•
•
•
•
InTap is our smart sourcing and interview management
application to attract and manage candidates and provide
best-in-class candidate experience along with an efficient
hiring process.
Launchpad: We expanded the coverage of Launchpad to all
our entities and across the globe. This mobile app-based, self-
service platform provides new hires a guided flow, which is
digital, remote and seamless, during the onboarding process.
It helps us onboard new hires remotely and make them Day
One Ready.
Lex: We created Lex, the anywhere, anytime, any device
app, to help Infoscions upskill, cross-skill, and reskill. Lex
recommends skills and learning paths based on employee
interests, skills, and roles. Employees can even mentor others
by uploading their own learning modules. Users can create
their own learning goals, and measure the time they spend
learning, as well as track their learning history.
Infosys Meridian enables a remote-first workplace that
mirrors the offline experience. With its event management
platform and breakout sessions capabilities, employees
use Meridian to connect at a large scale. Meridian is
fast becoming an important engagement platform for
employees.
InfyMe: We continued to enrich our InfyMe app with
more services that enables teams to operate, connect and
collaborate easily and it is particularly effective in the remote
working model. More than 200 touchpoints for activities
were merged into the single intuitive interface of InfyMe.
iCount: Our performance management framework and
application provides continuous and specific measurement
of employee performance, and enables transparent sharing
of goals with focus on role and career development.
iRise brings our rewards and recognitions philosophy to life.
This platform celebrates key achievements of our employees.
Managers can create reward categories and nominate
employees for these awards.
FLUID: With reskilling gaining momentum, more and
more Infoscions are acquiring new skills and capabilities.
To better manage this, we created F.L.U.I.D., our internal
talent marketplace. It enables Infoscions to constantly move
towards acquiring higher skills and experiences.
• Accelerate: This platform enables hiring managers to list
gig work jobs and internal talent to pick up these jobs for
execution. Accelerate also allows skill-based job matches to
recommend the right gigs and incentivizes gig workers and
hiring managers. The platform helps to provide richer job
variety and more immersive learning.
Skill Tags: Skill Tags are skill badges that identify proficiency
in different technologies. Employees can select a Skill Tag,
and then a variant within it, to specialize in. They can then
•
take the suggested learning path on Lex, which outlines all
the courses required to acquire that skill. After they complete
the required courses and gain six months of experience in
that technology, they qualify for a Skill Tag.
• Digital Quotient: Our Digital Quotient is a comprehensive
•
score that helps Infoscions keep track of their digital
capabilities. Using the score, Infoscions can understand how
their skills compare to others. Those with a higher Digital
Quotient have greater access to new opportunities and
interesting projects.
iEngage: We expanded the reach of iEngage across geos and
also integrated aspiration management in this platform. We
use iEngage to inform, inspire, and build a happier workplace.
It helps us drive vertical engagement between employee and
unit leadership. Managers can use this to schedule connect
events, invite employees and track actions identified during
such events. It also captures employee aspirations and
provides a platform to track and achieve them.
•
• DataVillage: We’re creating this dashboard that provides
immediate and relevant insights that allow us to make
thoughtful decisions about employees in key areas such as
performance management, bonus recommendations, role
changes, and more.
Intelligent automation: We are making our systems smarter
with: 1) Nudges to managers and employees, which are
driving the right behavior and guiding managers to take the
right decisions in matters like role change, retention etc., 2)
Chatbots that are transforming query management, and 3)
Robotic process automation, which is being leveraged by HR
to reduce manual work of our teams.
• Talent Anywhere model: The future workplace looks
•
headed to a hybrid remote model. Flexibility of location
and time will be key to attract and retain talent. Hence,
we rolled out the Talent Anywhere model in India that
provides flexibility of work location for our new and existing
employees. We have kept client and statutory requirements
in mind while enabling working from any location within
India. We also renewed our flexi-time policy in India that now
provides more flexibility to employees to work part time.
To drive more focus on employee experience, we set up an
Employee experience Centre Of Excellence with the mission
to create workplace experiences that employees cherish and
thrive in. The objectives are: 1) To ensure our processes and
systems create memorable moments that matter across an
employee’s journey at Infosys, 2) To create listening posts
to sense employee responses at transaction and process
levels, and 3) Reinforce the experience through better
communication.
• Manager Code: We have designed the Infosys manager
enablement framework to equip our leaders with the
capabilities to help their teams build technical, business
and people skills along with a digital mindset to accelerate
their development journeys. Managers also have a behavior
code that encourages them to adhere to seven fundamental
principles that shape a good manager at Infosys. We’ve
integrated the code into our everyday work lives and
measure our managers’ performance against it.
123
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation •
SALESFLEX: Our in-house capability development and
experience charter for the Sales team has proved to be
the cornerstone in our Sales transformation journey.
We ushered in SALESFLEX almost two years ago and
today, our Sales colleagues are reaping the benefits of a
plethora of matured programs which have been a strategic
game-changer in enhancing Sales productivity and
improving Sales experience. SALESFLEX filled the gap in
the people dimension, which is the beating heart of a Sales
transformation, by setting a direction and establishing
personalized learning platforms, tracking performance,
enabling recurring career conversations, incentivizing
desired behaviors and helping Sales warriors continuously
act to improve outcomes. Today, SALESFLEX is successfully
engaging a dynamic globe-trotting, market-facing Sales
team of 1,294 employees spread across 24 countries, through
nine major programs covering the entire realm of employee
experience starting from onboarding, reskilling, career
coaching, recognition, nurturing diversity and inclusivity,
effective usage of people analytics to mitigate attrition and
optimizing work force planning.
Employee engagement: Our employee engagement
framework is based on the 5Cs – Connect, Collaborate,
Celebrate, Care and Culture. Its main objective is to ensure
effective engagement, well-being and sustained motivation
levels among employees in the new hybrid model of work.
• Awards for Excellence (AFE): The AFE remains our largest
rewards and recognition platform for employees. This year
marked its 27th anniversary, and we received about a
thousand nominations across geographies in over 20
categories.
•
• Rewards philosophy: At Infosys, we look at rewards
holistically – what we call 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, diverse career
experiences and 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 to drive
high performance and the right behavior.
• Culture and values: Our company values – C-LIFE – define
our approach to everything. C-LIFE stands for Client
value, Leadership by example, Integrity and transparency,
Fairness, and Excellence. The organization culture, driven
by our core values, is one of the main levers that drive our
business. Employees are regularly reminded about the
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 been
repurposed to build the momentum of our business focus on
cloud and digital.
124
•
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 to address employee grievances, such as ASHI
(Anti-Sexual Harassment Initiative), HEAR (Hearing Employees
and Resolving their concerns) platform, the Grievance
Redressal Body, the Whistleblower Policy, and iCARE. In the
post-pandemic scenario, there is greater focus on providing
psychological safety to employees.
Infosys HR Team was one among the top three organizations
named in SHRM HR Excellence Awards 2021, in the categories
•
•
•
•
Excellence in HR Analytics
Excellence in Diversity & Inclusion
Excellence in Health and Wellness Initiatives
Excellence in Managing the Hybrid Workplace – The HR Lens
Employee well-being
At Infosys, employee well-being has taken precedence over the
past year and developed into a more substantial model with
the help of our program HALE (Health Assessment and Lifestyle
Enrichment). With HALE, our endeavor has been to enhance the
well-being experience for our employees and their families with
an increased focus on pandemic well-being and mental health.
All our wellness programs stand on the foundational pillars of
physical, social and emotional well-being, and safety.
Our focus over the last few years has been to provide a
high-touch and high-tech experience to our employees.
• Digital well-being: In an effort to stay ahead of the curve
in building digital capabilities, we looked at creating digital
touchpoints in the lives of our employees by providing them
a holistic wellness platform both on the go and on their
laptops. This platform entails a host of offerings like wellness
content, expert talks by professionals around the country,
self-help tools, availability of HALE counselors 24*7 and
much more.
Emotional well-being: Transitioning the handling of mental
health-related issues from the physical to the virtual mode of
communication had to be done with utmost care. We have
wellness coaches supporting our employees 24*7 in times
of distress, our peer-to-peer counseling network called
Samaritans catering to various segments, weekly webinars
and discussions by experts, online self-help tools for
employees to assess their emotional health and mindfulness
workshops.
•
• Physical well-being: During the pandemic, Infosys tied
up with COVID-19 testing labs nationwide, collaborated
with emergency ambulance providers in every major
city, provided teleconsultation facilities and launched a
COVID-19 crisis support helpline for employees. Multiple
teams were tasked to consistently check on the well-being of
employees who had tested positive. Infosys was one of the
first large private organizations to spearhead vaccinations
for its employees and dependents. We collaborated with
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation •
vaccination providers / manufacturers, local authorities, and
administrators to execute this task. There were targeted
and consistent messaging and campaigns to bust the myths
around COVID-19 and vaccination, such as nominating peers
to get vaccinated challenge, featuring employees who
emerged stronger post pandemic and sessions by experts.
Social well-being: We create opportunities for work-life
balance and help Infoscions have a fulfilling and
multi-faceted life. We conduct several leisure events to
cater to their interests, hobbies, and lifestyle. We have
been successfully able to transform the concept of physical
communities to virtual communities, and our clubs and
groups continue to drive well-being programs.
• HALE won the Bronze Medal for SHRM Excellence Award 2021
• HALE won AFE Gold for Internal Customer Delight 2022
Internal complaints committee
At Infosys, our goal has been to create an open and safe
workplace where each and every employee feels empowered
to contribute to the best of their abilities, irrespective of gender,
sexual preferences or any other classification that has no bearing
on the employee’s work output. Towards this, the Company
has set up the Anti-Sexual Harassment Initiative (ASHI), which
proudly completes 22+ 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 350+ companies
that participated in an external survey on the best anti-sexual
harassment initiatives in 2017, 2019, 2020 and 2021.
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 constitution of the IC is 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. Investigation
is conducted and decisions made by the IC at the respective
location, and a senior woman employee is the presiding officer
over every case. Half of the total members of the IC are women.
The details of complaints pertaining to sexual harassment that
were filed, disposed of and pending during the financial year are
provided in the Business Responsibility and Sustainability Report of
this Integrated Annual Report.
Recruitment
As of March 31, 2022, the Group employed 3,14,015 employees, of
which 2,97,859 were professionals involved in service delivery to
the clients, including trainees.
We have built our global talent pool by recruiting freshers
from premier universities, colleges and institutes globally.
We constantly attract and hire developers, architects, technical
leaders and project managers in areas of digital and cloud,
and transformation. We have build robust relationships with
top institutions in the country and recruit students who have
consistently shown high levels of achievement. In addition, we
have also scaled up InfyTQ which brings the best of our Mysuru
training to the hands of the learners across the country. This has
amplified the learning experience of students who actively
participate in learning and assessments to get the coveted
Infosys Certification.
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 evaluation of
mathematical and logical aptitude, coding ability and in-depth
interviews to identify the best applicants. This selection process
is continually assessed and refined based upon multiple factors
including performance tracking of past recruits. Most interviews
in fiscal 2022 were conducted virtually across the globe, 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 2022, we received 58,66,636 employment
applications, interviewed 5,23,385 applicants and extended
offers of employment to 2,22,500 applicants. These statistics do
not include our subsidiaries. We added 54,396 new employees,
net of attrition, during fiscal 2022.
Education, training and assessment
Amplifying human talent through a sustained culture of
lifelong learning has always defined Infosys. The Foundation
Training Program anchored by the Global Education Center has
been grooming fresh graduates into corporate professionals.
Comprising over 46 technology streams, the curriculum has kept
pace with the dynamic business requirements and the preferred
pedagogical approach of the current generation of talent.
With localization as an important strategic pillar, Infosys
has invested in a training center, like the Mysuru Global
Education Center in Indianapolis in the US to reskill local talent.
The Foundation Program for fresh hires caters to fresh graduate
hires in Mexico, UK, Germany, Australia, Singapore, and Japan.
With the deep adoption of the Infosys Learning Experience
platform Lex, the shift from offline classes to online learning,
complete with learner engagement components, was seamless
and continues to engage the fresh hires in the second year
of the pandemic too.
Our Continuous Education program is aimed at reskilling /
upskilling our existing employees by instilling a culture of
lifelong learning. This program has twin objectives — increasing
fulfillment of skilled talent requirements for client projects
and enriching the expertise of our global workforce in next-
generation digital technologies and methodologies. We continue
to invest in and scale our digital reskilling program globally.
Lex, the in-house learning platform, offers over 13,700 curated
courses, which includes over 10,000 courses procured from
vendor partners both for enterprise consumption and niche
communities who have specific content requirements. About
30,000 employees use Lex on weekdays with an average learning
time of about 40 minutes, and 14,000 employees use Lex on
weekends with an average learning time of about 50 minutes. We
continue to engage with academia to bring in fresh perspectives
while creating learning courses to meet the demands of this
accelerated digital adoption. We continue to experiment with
industry leading approaches of adaptive learning, learning in
virtual classrooms and learning in the metaverse as well.
Infosys Wingspan, our configurable talent transformation
platform for clients, is already live in several global client
organizations. Lex, which is powered by Infosys Wingspan,
125
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation was repurposed for college students in India under the brand
of InfyTQ. Infosys Wingspan has also been leveraged for the
flagship ESG initiative, Infosys Springboard. In alignment with
the Infosys ESG Vision 2030 to enable digital skills at scale,
Infosys Springboard has been identified as the primary digital
learning platform to empower people, communities, and society
with skills to be successful in the 21st century. This program is
led by a dedicated team of experts collaborating globally with
the Infosys Education Training and Assessment (ETA) team,
curriculum partners, non-profits, and a global network of leading
educational institutions. About 3,900 learning resources are
available in Springboard and about 1.8 million learners from
across India are actively consuming the content on Infosys
Springboard platform. We intend to reach 10 million learners by
2025 as part of our Springboard initiative.
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 and agility.
• De-risk Infosys operations by ensuring delivery excellence,
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.
Clients now need to go beyond agile practices and do much
more to achieve business agility. Last year, we launched our
Product Centric Value Delivery approach to help clients do
exactly that, through a holistic transformation of the ways
of working. The Quality team also consulted with several
large clients and helped them drive their agile, DevOps,
project to product ways of working shift, and overall
workplace transformation.
Quality has been leading the way in driving Lean and automation
in the organization to enhance productivity and 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
engineering excellence. Last year, the Quality team also created
frameworks to help projects operate with a more optimal
resource pyramid and deployed the same across hundreds
of projects. 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.
Quality continues to drive best practices and sustenance
through structured audits and assessment frameworks, focusing
on de-risking the organization, with augmented coverage of
services, centers and subsidiaries. We continue to comply with
international management system standards and models, viz.,
ISO 9001, ISO 27001, ISO 14001, ISO 45001, ISO 22 301, ISO 20000,
AS 9100 and ISO 27701.
In fiscal 2021, Infosys published its first Environmental, Social
and Governance (ESG) report in accordance with GRI standards.
Infosys is the first IT company to comply with and get assessed
at enterprise level on SSAE18 -SOC 3 report attestation.
Infosys successfully completed CMMI 2.0 assessments for
onsite locations, rated at L5 maturity. Infosys continued to
comply with and get assessed at enterprise level for SSAE 18
SOC 2 type II & ISAE 3402 / SSAE 18 SOC 1 type II including
cloud platforms and has received an independent auditors’
assurance compliance report.
126
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation 2. Infosys Center for Emerging Technology Solutions (iCETS)
OUTCOME
n
t i o
a
v
o
n
C ult u r e o f I n
Thought Lead
ership
vation Network (IIN)
o
n
s In
y
s
o
f
n
I
D
e
-
r
i
s
k
i
n
g
I
n
n
o
v
a
t
i
o
n
T
B
r (
o
t
a
g
i
v
a
N
e
h
T
e
B
|
I
n
n
o
v
a
t
i
o
n
H
u
b
s | H
y
p
INNOVATION
Trends & S
e
n
sin
PLATFORM
D
o
N) | Infosys Innovation Fu n d (IIF )
ch Platform s
e
T
g |
E
m
e
r
g
i
n
g
T
e
c
h
C
o
E
s
|
I
P
/
P
a
t
e
n
t
iCETS
P
l
a
t
f
o
r
m
P
l
a
y
b
o
o
k
s
|
Platform Community | P l a t
f o r m A
m
a
i
n
P
l
a
t
f
o
r
m
s
r
o
t
a
b
u
c
n
e
r
u
t
c
u
r
t
s
a
r
f
n In
atio
ov
c c elerator | Platform I
n | Livin g Labs | Shared Inn
i o
e
ervic
Platform as a S
erscaler Collaboration | Startup Co l l a b o r a t
IP Monetization
n
a ti o
v
o
n
i e n t I n
C l
J o i n t
iCETS is the emerging technology solution incubation partner
for Infosys’ clients and units. We provide next-generation
platforms and innovation-as-a-service to future-proof enterprise
businesses. The aim is to envision and evolve New Emerging
eXploratory Technology (NEXT) solutions for our clients both
organically (driving innovation bottom-up across Infosys) and
inorganically via the IIN (partnering with hyperscalers, startups,
universities, and large product players). iCETS incubates
emerging technologies under different Centers of Excellence
(CoE), such as Quantum Computing, Metaverse, Hyperscaler
and more. The centers focus on building capability, developing
thought leadership, and offering early client validation.
The IP development moves on to building of platforms
driving a significant part of innovation for our clients and
monetization for Infosys.
One of the key CoEs Infosys unveiled is the Metaverse
Foundry. It leverages assets like the Infosys XR platform
to build cross-platform AR experiences, Infosys Virtual
Living Labs platform to showcase immersive innovations
virtually, and Infosys Physical Living Labs platform to offer
phygital experiences to our clients. Among numerous client
engagements, we are working with one of the leading global
manufacturing companies to build 3D CPQ and digital twins.
For one of the top American multinational financial services
companies, we are creating a virtual branch and formulating
crypto transactions.
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
making application management agile, intelligent, integrated
and business-aligned. As a leader in data privacy, Infosys
Enterprise Data Privacy Suite (iEDPS) assists in tackling the
complexity and data privacy responsibilities of organizations
to achieve compliance and business productivity objectives.
To address the increased cyber threats faced by our clients,
Infosys has built CyberNext, a holistic security-as-a-service
platform. Through Infosys Cortex, an AI-driven cloud-first
customer engagement platform, clients can transform digital
customer service via purposeful communication and smart
decision-making capabilities. Infosys Conversational AI Suite is
an end-to-end technology-agnostic platform providing a holistic
approach by developing prototypes using a low-code / no-code
(LCNC) approach and managing conversational AI solutions
(chatbots / virtual assistants). It brings together a collection of
tools (prototype, design, test, measure, and evolve), people
and processes to strengthen the adoption of conversational AI
within an enterprise. The Infosys recruitment platform reduces
the time to hire and analyse candidates resume powered by
advanced AI, with multi-tenancy in place, the platform keeps the
process flows configurable for different tenants with embedded
knowledge on domain and geography requirements. The Infosys
127
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation
CXM is a continuously learning suite of products that aims
to bring the best of intelligence into automation, the focus is
to prioritize orchestration and personalization of the entire
end-to-end customer experience at scale, on any channel, in
real time. We are incubating several domain platforms like Helix
and EaaS. The Energy-as-a-Service (EaaS) platform is under
development by iCETS in collaboration with other units and a
lead client, this platform will enable management of renewable
energy generation, storage and smart consumption for larger
facilities and industries. One of the critical differentiating
factors is infusion of startups. Most of our platforms are
designed to be Platform-as-a-Service (PaaS) 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
together to help clients meet their innovation-at-scale needs on
multiple dimensions. Here, we proactively expand our services
and capabilities to meet growing and dynamic innovation needs
of clients with the aid of Joint Innovation Centers, Experience
Centers, IIN & Industry Living Labs, Complexity Studio, and
more. We also monitor and publish Trend Trees of Horizon
3 technologies and business trends and assist our clients
foresee disruptions with Listening-Post-as-a-Service (LPaaS).
Jointly working with our clients, we enable rapid prototyping,
incubating, and piloting of innovative solutions. Additionally,
we instill a culture of innovation with our BTN program across
large teams, provide shared innovation infrastructure for
collaborations, and ensure a seamless transition from a PoC to
Emerging Technology incubation model
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.
IIN is a well-orchestrated partnership between select startups,
universities, hyperscalers, and Infosys to incubate and bring
the best of emerging tech innovations from across the globe.
The IIN program aims to create lighthouse wins for clients to
experiment and implement the art of the possible leveraging
our global 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 onto Infosys’ network. Over the past 12 months, we’ve
engaged with numerous startups, universities and hyperscalers
across geographies like the US, Finland, Israel, and India,
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 combining Infosys
platforms, innovations, and startup networks. There have been
several analyst mentions recognizing us as notable accelerators
in Quantum Computing, positioning us as leaders in services
like Oracle Cloud, AI, Automation, LEAP, as well as commending
the work of Metaverse Foundry and Living Labs. We act as the
contextualizers, crucible and orchestrators for our clients to
boost their next-generation innovations.
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
Metaverse
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
i
y
t
n
a
t
r
e
c
n
u
y
g
o
o
n
h
c
e
T
l
Business uncertainty
128
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsManagement’s discussion and analysisStrategy reviewApproaching value creation
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 have 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 are also the official digital innovation partner of key MSG
properties including the New York Knicks, New York Rangers and
the Madison Square Garden Arena. Our strategic partnerships
with Dow Jones, Bloomberg Media, The Economist Group and
Financial Times further accentuate this position. 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. We, along with our subsidiaries, added
451 new clients, including a substantial number of large global
corporations. Our total client base at the end of the year stood
at 1,741. 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 +
2022
2021
38
64
275
853
32
59
252
779
5. Infosys Leadership Institute
The Infosys Leadership Institute (ILI) continued its focus on
enabling individual and collective leadership capabilities in fiscal
2022. This was also the year when some of the key leadership
programs created organizational impact and won international
recognition along the way. The succession planning program,
Constellation Program, was awarded the prestigious ATD Award
for Excellence in Practice 2022. The first phase of the program
concluded with a significant addition to the succession pool and
all the organizational strategic projects achieving the desired
objectives. Working with a senior leadership panel, ILI has added
a few more high potential leaders to the Constellation Program in
the second phase commencing fiscal 2023.
The IamtheFuture women in leadership program had 307
women leaders completing the ILI-Stanford GSB certification
with a collective effort of attending 40+ development programs,
turning in 3,300+ assignments and 2,500+ learning days.
The comprehensive talent reviews with the business heads
have ensured specific actions to provide the right career and
development support for every woman leader as also to gain
commitment from the business heads on the representation
of women in leadership roles in their organizations. In just the
first year, the program has received the Women’s Icon Asia D&I
Champions Award in the category of Advancing Women.
ILI continued to offer an array of leadership programs, both
internal and external, to all senior leaders in the organization.
Working with eminent academic institutions, consulting firms
and other leadership development organizations, ILI offered
100+ programs with 14,000+ total participants and 5,000+
learning days. Senior leaders, including the CXOs, facilitated
a series of Leaders Teach programs to ensure contextualized
development for our leaders.
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 themes include sustainability,
artificial intelligence, data analytics, cloud, modernization, digital
commerce, agile methods, and cybersecurity. Major works
include the Digital Radar maturity assessment, TechCompass
series, Practical Sustainability book and the Tech Navigator for
future trends. 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
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 more than 10 million people with digital
skills and more than 80 million with Tech 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 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.
129
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsManagement’s discussion and analysisFinancial statementsStrategy reviewApproaching value creation Introduction
Approaching
value creation
Strategy
review
Delivering
value
Governance
Statutory
reports
CG Report
Financial
statements
BRSR
Corporate governance report
130
Infosys Integrated Annual Report 2021-22
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 and performance, and ensure that we gain
and retain the trust of our stakeholders at all times.
Corporate governance is an ethically-driven business
process that is committed to values aimed at enhancing an
organization’s wealth-generating capacity. This is ensured by
taking ethical business decisions and conducting business with
a firm commitment to values, while meeting stakeholders’
expectations. At Infosys, it is imperative that our Company affairs
are managed in a fair and transparent manner. This is vital to gain
and retain the trust of our stakeholders.
We are committed to defining, following and practicing
the highest level of corporate governance across all our
business functions.
Our corporate governance is a statement of the values we
stand by as we conduct our business and engage with our
stakeholders. Our Company has been a leader in adopting
internationally-recognized corporate governance guidelines and
has set the highest standards in abiding by them.
Our governance rests on our core value system of C-LIFE (Client
Value, Leadership by Example, Integrity and transparency,
Fairness and Excellence) and is guided by the OECD (Organization
for Economic Cooperation and Development) principles. Our
corporate governance framework thus encompasses:
Ensuring the basis for an
effective corporate governance framework
The rights and equitable
treatment of shareholders and
key ownership functions
Institutional investors, stock markets
and other intermediaries
1
2
3
G20/OECD
Principles of
Corporate
Governance
4
The role of stakeholders
in corporate governance
5
Disclosure and transparency
6
The responsibilities of the board
Infosys values: C-LIFE
Client
Value
Leadership
by Example
Integrity and
Transparency
Fairness
Excellence
Board as a trustee
Safeguard the shareholder’s capital
as trustee, and not as its owner
Responsible leadership
Lead by example by ensuring independence of the Board
and effectiveness of the Management
Legal compliance
Satisfy both the spirit and the letter of
the law in all our actions and disclosures
Effective corporate governance
Build simple and transparent processes
driven by business needs of all stakeholders
Fairness and excellence
Be objective and ethical, and deliver the best
to earn trust and respect from our stakeholders
Integrity and
transparency &
Relationship
with stakeholders
Ensure transparency and maintain a high level of integrity,
driven by the dictum, ‘When in doubt, disclose.’
Communicate frequently with stakeholders, including
clients, investors, shareholders and stock markets
Infosys corporate governance framework
Our corporate governance is reinforced through the Company’s Code of Conduct and Ethics, corporate governance guidelines
and committee charters. Our Board and Management processes, audits and internal control systems reflect the corporate
governance framework principles. This report gives a comprehensive look at how our governance adheres to the seven pillars of our
governance framework.
131
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Board as a trustee
The Board recognizes its primary role of trusteeship of shareholder capital and
as a trustee, it strives to ensure excellence and integrity in setting world-class
corporate governance standards.
Corporate governance guidelines
Strong corporate governance is the bedrock of our sustained
performance and has helped us gain the trust and respect
of all our stakeholders. The enhancement of these corporate
governance standards, through periodic evaluation and change,
is one of the most important aspects of ensuring value creation
for our stakeholders.
Our corporate governance follows the guidelines established
by the Board of the Company. These guidelines provide a
structure within which directors and the Management can
effectively pursue the Company’s objectives for the benefit
of its stakeholders. These are framed in conjunction with the
Company’s Memorandum & Articles of Association, the charters
of the committees of the Board and applicable laws / regulations
/ guidelines in force in India and the US and other jurisdictions,
as applicable. The guidelines can be accessed on our website,
at https://www.infosys.com/investors/corporate-governance/
Documents/corporate-governance-guidelines.pdf.
These guidelines ensure that the Board has the necessary
authority and processes to review and evaluate our operations
as and when required. Further, these allow the Board to make
decisions that are independent of the Management. The Board,
at its discretion, may change the guidelines periodically to
achieve our stated objectives. In addition to these guidelines, the
Company actively complies with the relevant global guidelines
and standards and corporate governance codes.
Role of the Board of Directors
The primary role of the Board is that of trusteeship – to protect
and enhance shareholder value. As trustees, the Board has a
fiduciary responsibility to ensure that the Company has clear
goals aligned to shareholder value and its growth. Further, the
Board is also responsible for:
•
Exercising appropriate control to ensure that the Company
is managed efficiently to fulfill stakeholders’ aspirations and
societal expectations.
• Monitoring the effectiveness of the Company’s governance
practices and making changes as needed.
Providing strategic guidance to the Company and ensuring
effective monitoring of the Management.
Exercising independent judgment on corporate affairs.
•
•
132
• Assigning sufficient non-executive members of the Board to
tasks where there is a potential for conflict of interest, to be
able to exercise independent judgment.
•
Reviewing and guiding 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.
Independent directors
The Companies Act, 2013 and the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“the Listing
Regulations”) define an ‘independent director’ as a person who,
including his / her relatives, is or was not a promoter or employee
or key managerial personnel of the company or its subsidiaries.
Further, the person and his / her relatives should not have a
material pecuniary relationship or transactions with the company
or its subsidiaries, during the three 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 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.
Board composition
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, regional and
industry experience, cultural and geographical background, age,
ethnicity, race, gender, knowledge and skills, including expertise
in financial, global business, leadership, information technology,
mergers & acquisitions (M&A), board service and governance,
sales and marketing, Environmental, Social and Governance
(ESG), risk management and cybersecurity and other domains,
which will ensure that Infosys retains its competitive advantage.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation As on March 31, 2022, the Board comprised eight members,
including a non-executive and non-independent Chairman,
Chief Executive Officer & Managing Director, and six
independent directors.
The profiles of Board members encompassing details of
nationality, age, date of (re)appointment, tenure on Board, term
ending date, shareholding, Board memberships in Indian listed
companies, committee details as per Regulation 26 of the Listing
Regulations and areas of expertise are given in the Governance
chapter of the Integrated Report. There are no inter-se
relationships between our Board members. The Company
does not have any pecuniary relationship with any of the
non-executive directors.
The Board has six committees – audit committee, nomination
and remuneration committee, stakeholders relationship
committee, risk management committee, corporate social
responsibility (CSR) committee and ESG committee. All
committees comprise only independent directors, one of whom
is chosen as the chairperson of the committee. The Company
also has a cybersecurity risk sub-committee, which is a sub-
committee of the risk management committee comprising solely
of independent directors.
The composition of our Board as on March 31, 2022
Tenure analysis of the Board as on March 31, 2022
Size and composition of the Board
25%
Non-Executive and
Non-Independent Director
Nandan M. Nilekani
Executive Director
Salil Parekh
75%
Independent directors
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Indian
62.5%
37.5%
Foreign national
Men
75%
Women
25%
Average tenure (in years)
Non-executive,
non-independent director
Executive directors
Independent directors
The Board
4.6
4.2
3.6
3.8
Tenure of the directors
<2 years
2-4 years
>4 years
Board meetings
Meeting of independent directors
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 propose 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. 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 all 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.
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 commitments do not materially interfere with their
responsibilities with us.
For the Board to exercise free and fair judgment in all matters
related to the functioning of the Company as well as the Board,
it is important for the independent directors to have meetings
without the presence of the executive management.
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.
During the year, the independent directors met four times. 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, succession planning, human resource
matters and performance of the executive members of the
Board, and the Chairman.
Also, 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
directors and other members of the senior management share
points of view and leadership thoughts on relevant issues.
133
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Responsible leadership
Leading by example is a key tenet of corporate governance at Infosys.
Both the Board and the Management work together to set the highest
standards of responsible leadership.
Responsibilities of the Board leadership
CEO & MD
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 our corporate governance practice. The Board oversees the
Management’s functions and protects the long-term interests
of our stakeholders.
The responsibilities and authority of the Chairman, the CEO & MD
and the lead independent director are as follows:
Chairman
The Company has separated the role of Chairman and the Chief
Executive Officer and Managing Director (CEO & MD) to create
a more balanced governance structure. The Chairman leads
the Board, and 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. He presides over all 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 performance of
individual directors.
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 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 Financial
Officer (CFO), Presidents and Executive Vice Presidents as per the
organizational structure.
Lead independent director
The lead independent director was appointed by the Board
to ensure robust independent leadership of the Board. The
general authority and responsibility of the lead independent
director are decided by the group of independent directors. The
lead independent director also performs additional duties as
the Board determines.
The lead independent director provides leadership to the
independent directors, liaises on behalf of the independent
directors and ensures Board effectiveness in maintaining
high-quality governance of the organization and effective
functioning of the Board.
134
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation 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.
Financial
Diversity
Global business
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
Leadership
Information Technology
Mergers and Acquisitions
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
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
Environmental, Social
and Governance (ESG)
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
Risk management
Cybersecurity
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
Experience in assessing and managing cybersecurity-related risks
and in implementing the cybersecurity policies, procedures, and
strategies
135
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation 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, as laid out in the
Nomination and Remuneration
Policy, presents a diverse slate of
recommendations of eligible
candidates to the Board.
The Board recommends
the appointment of the
director to the shareholders.
The proposal
is placed before
the shareholders
for approval.
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 to senior
management positions. 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.
In addition, promoting senior management within the
organization fuels the ambitions of the talent force to earn
future leadership roles.
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-members2022.pdf.
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 engagements 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 planning,
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 various strategic initiatives, 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.
In summary, through this process, members of the Board get
a comprehensive and balanced perspective on the strategic
issues facing the Company, the competitive differentiation being
pursued by the Company and an overview of the execution
plan. In addition, this event allows the members of the Board to
interact closely with the senior leadership of the Company.
The details of the training programs attended by the Board
members in fiscal 2022 are as follows:
Name of the director
Nandan M. Nilekani
Salil Parekh
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Total hours
No. of training hours attended
during fiscal 2022
3
3
3
3
3
3
3
3
24
136
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Effective corporate governance
Our legacy of good corporate governance has translated into trust from all
stakeholders. To maintain this trust, continuous efforts are made to facilitate
effective corporate governance measures such as constitution, governance and
working of Board committees.
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
Attendance of directors during fiscal 2022
During the year, eight Board meetings were held.
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.
AGM
Jun
19,
2021
Board meeting dates
1
Apr
13-14,
2021
2
May
18,
2021
3
Jul
13-14,
2021
4
Oct
12-13,
2021
5
Dec
06,
2021
6
Dec
14,
2021
7
Jan
11-12,
2022
8
Mar
22,
2022
Held
during
tenure
% of
attendance
Board attendance
Name of the directors
Nandan M. Nilekani
Salil Parekh
U.B. Pravin Rao(1)
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Attendance percentage
100%
100%
78%
100%
100%
89%
100%
100%
63%
Attended through video conference
Attended
Leave of absence
Attended through call
(1) Retired as Whole-time Director and COO effective December 12, 2021
8
8
5
8
8
8
8
8
8
8
6
5
7
8
8
6
8
7
100
75
100
88
100
100
75
100
88
137
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Governance of Board committees
The Board, in consultation with the nomination and
remuneration committee, is responsible for assigning and fixing
terms of service for committee members.
The Chairman of the Board, in consultation with the Company
Secretary and the respective committee chairperson, determines
the frequency of the committee meetings. 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 quorum for meetings is the higher of two members or one-
third of the total number of members of the committee.
Board committees as on March 31, 2022
The Board
Audit committee
D. Sundaram
Michael Gibbs
Bobby Parikh
Nomination and
remuneration
committee
Corporate
social responsibility
committee
Kiran Mazumdar-Shaw
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Chitra Nayak
Chairperson
Member
Stakeholders
relationship
committee
D. Sundaram
Bobby Parikh
Chitra Nayak
Environmental, Social and
Governance committee
Risk management
committee
Kiran Mazumdar-Shaw
Uri Levine
Chitra Nayak
D. Sundaram
Michael Gibbs
Kiran Mazumdar-Shaw
Uri Levine
Bobby Parikh
Chitra Nayak
Cybersecurity
risk sub-committee
Michael Gibbs
D. Sundaram
Uri Levine
138
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Audit committee
D. Sundaram
Chairperson and Financial Expert
The audit committee (“the Committee”) comprises only independent directors. As on March 31, 2022, the Committee comprised:
1. D. Sundaram, Chairperson and Financial Expert
2. Michael Gibbs
3. Bobby Parikh
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:
1. The accuracy, integrity and transparency of the Company’s
financial statements with adequate and timely disclosures;
2. Compliance with legal and regulatory requirements;
3. The Company’s independent auditors’ professional
qualifications and independence;
4. The performance of the Company’s independent auditors and
internal auditors; and
5. Acquisitions and investments made by the Company.
Audit committee charter
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.
Process adopted by the Committee to fulfill its objectives
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 statements
for the relevant period
Providing an independent channel of communication
for the Chief Compliance Officer, internal auditor and the
independent auditor
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 and
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
Providing periodic feedback and reports to the Board
139
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Committee governance
The Committee 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
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, 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
The Committee met seven times during the year, which is more
than the requirement of the Companies Act, 2013 and the
Listing Regulations.
Composition and attendance
100%
Independence
3
Members
7
Meetings
100%
Attendance
Attendance details of the audit committee
Audit committee meeting
Name of the directors
D. Sundaram
Michael Gibbs
Bobby Parikh
Attendance percentage
1
Apr
13-14,
2021
2
Jul
13-14,
2021
Committee meeting dates
5
4
3
Dec
Oct
Sept
06,
12-13,
14-15,
2021
2021
2021
6
Jan
11-12,
2022
7
Mar
22,
2022
100%
100%
100%
100%
100%
100%
100%
Held
during
tenure
7
7
7
% of
attendance
7
7
7
100
100
100
Attended through video conference
Attended
Audit committee report for the year ended March 31, 2022
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.
Held discussions with the auditors (without the presence of members of the Management, whenever necessary) 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.
Undertook an annual performance evaluation of its own effectiveness.
Reviewed with independent auditors the nature and scope of the audit, and reviewed the audit engagement to ascertain
adequacy and appropriateness.
Reviewed the Management’s discussion and analysis of the financial condition and results of operations
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
Reviewed the process adopted by the Management on impairment of assets including financial assets and goodwill.
Q
Q
A
A
A
A
Q
P
P
P
140
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Reviewed the significant transactions of the subsidiaries including related party transactions.
Recommended incorporation of new subsidiaries and overseas branches, and further investments in the existing subsidiaries
Recommended buyback of shares and reviewed the progress of the buyback till its successful completion
Reviewed and approved related party transactions and recommended for the approval of the Board wherever necessary
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.
Monitored and reviewed the 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.
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 and recommended the
changes thereof
Frequency
A Annually
Q Quarterly
P Periodically
P
P
P
P
P
Q
A
A
A
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, 2022,
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, 2022, 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, 2022, 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, 2022, 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)
•
Recommended, the re-appointment of Deloitte Haskins &
Sells, LLP, Chartered Accountants as the statutory auditors
of the Company under Section 139 of the Companies Act,
2013 subject to the approval of shareholders of the Company.
Deloitte will hold office for another term of 5 consecutive
years commencing from the conclusion of 41st AGM (for FY 22-
23) and ending with the conclusion of 46th AGM (for FY 26-27).
The appointment of Ernst & Young LLP as the internal
auditors of the Company for the year ending March 31, 2023,
to review various operations of the Company
The appointment of Makarand M. Joshi & Co. Practicing
Company Secretaries, as secretarial auditor for the year
ending March 31, 2023, 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,
2022. 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.
Bengaluru
April 13, 2022
Sd/-
D. Sundaram
Chairperson
141
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Nomination and remuneration committee
Kiran Mazumdar-Shaw
Chairperson
The nomination and remuneration committee (“the Committee”) comprises only independent directors. As on March 31, 2022, the
Committee comprised:
1. Kiran Mazumdar-Shaw, Chairperson
2. D. Sundaram
3. Michael Gibbs
Objectives of the Committee
Committee governance
The main objectives and responsibilities of the nomination and
remuneration committee of the Board is to:
1. Assist the Board in discharging its responsibilities relating
to compensation of the Company’s executive directors, Key
Managerial Personnel (KMP) and senior management
2. Evaluate and approve the adequacy of the compensation
plans, policies, programs and succession plans for the
Company’s executive directors, KMP and senior management
3. Formulate criteria for determining Board composition, Board
effectiveness, Board succession, and independent functioning
of the Board
4. Administration of equity based plans / schemes approved by
the shareholders
5. 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
6. Recommend the appointment and removal of directors, for
approval of the shareholders
7. Evaluate the performance of the Board, including committees
and individual directors
8. Leadership development and succession planning of the
organization
9. Develop and maintain corporate governance policies
applicable to the Company
10. Devise a policy on Board diversity and sustainability
The Committee 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 on January 12, 2022 and the
Nomination and Remuneration Policy on April 13, 2022. The
committee charter and policy are available on our website, at:
Charter: https://www.infosys.com/investors/corporate-
governance/documents/nomination-remuneration-
committee-charter.pdf
Policy: https://www.infosys.com/investors/corporate-
governance/documents/nomination-remuneration-policy.pdf
The nomination and remuneration committee met five
times during fiscal 2022.
Composition and attendance
100%
Independence
3
Members
142
5
Meetings
100%
Attendance
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Attendance details of the nomination and remuneration committee
Nomination and remuneration committee meeting
Name of the directors
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Attendance percentage
1
Apr 13, 2021
Committee meeting dates
3
Jul 13, 2021
2
May 18, 2021
4
Oct 07, 2021
5
Jan 11, 2022
Held
during
tenure
5
5
5
% of
attendance
100
100
100
5
5
5
100%
100%
100%
100%
100%
Attended through video conference
Attended
Nomination and remuneration committee report for the year ended March 31, 2022
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 fiscal 2022.
Undertook a review of the succession plans for key leadership positions, and helped to shape and monitor the development
plans of the key leadership
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 committees
The Committee recommended the institution of the Environmental, Social and Governance committee comprising independent
directors as members of the committee
Based on performance evaluation and considering diverse skills, leadership capabilities, expertise in governance and finance,
risk management and vast global experience, among others, recommended reappointment of D. Sundaram as an independent
director for a second term of five years.
Based on performance evaluation, recommended the reappointment of Nandan M. Nilekani, who is eligible to retire by rotation
at the ensuing AGM
Reviewed the measures taken by the Company for the health, safety and well-being of employees and for business continuity
during COVID-19
Reviewed the mechanism of business enablement to thrive in the new normal, post COVID-19, including future-ready careers,
leadership program for women, right and inclusive culture of leaders
Placed 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
Designed, benchmarked and continuously reviewed 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 recommended amendments to the Nomination and Remuneration Committee Charter and policy
The Committee reviewed various initiatives undertaken by the Company to ensure the safety, security and well-being 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
P
P
P
P
P
A
A
Q
Bengaluru
April 12, 2022
Sd/-
Kiran Mazumdar-Shaw
Chairperson
143
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Corporate social responsibility committee
Kiran Mazumdar-Shaw
Chairperson
The corporate social responsibility committee (“the Committee”) comprises only independent directors. As on March 31, 2022, the
Committee comprised:
1. Kiran Mazumdar-Shaw, Chairperson
2. Chitra Nayak
3. Uri Levine
Our CSR philosophy
Committee governance
The Committee comprised three independent directors 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, 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 2022.
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:
1. Identifying the areas of CSR activities
2. Recommending the amount of expenditure to be incurred on
the identified CSR activities
3. Implementing and monitoring the CSR Policy from time to
time
4. Coordinating with Infosys Foundation or other such agency in
implementing programs and executing initiatives as per the
CSR Policy of the Company
5. Reporting progress of various initiatives and in making
appropriate disclosures on a periodic basis
6. Other items / matters prescribed under applicable law or
prescribed by the Board of directors from time to time
Composition and attendance
100%
Independence
3
Members
4
Meetings
100%
Attendance
144
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Attendance details of the corporate social responsibility committee
CSR committee meeting
Name of the directors
Kiran Mazumdar-Shaw
U.B. Pravin Rao(1)
Chitra Nayak
Uri Levine(2)
Salil Parekh(3)
Attendance percentage
Committee meeting dates
1
Apr 07, 2021
2
Jul 06, 2021
3
Oct 05, 2021
4
Jan 04, 2022
100%
100%
100%
100%
Held
during
tenure
4
3
4
0
1
% of
attendance
100
100
100
100
4
3
4
0
1
Attended through video conference
Attended
(1) U.B. Pravin Rao ceased to be a member of the Committee due to retirement effective December 12, 2021.
(2) Uri Levine was appointed as a member of the Committee effective January 13, 2022.
(3) Salil Parekh was appointed as a member of the Committee effective December 13, 2021 and ceased to be a member of the Committee effective January 12, 2022.
CSR committee policy and charter
CSR report
The Committee, with the approval of the Board, has adopted the
CSR Policy as required under Section 135 of the Companies Act,
2013. The Board amended the charter of the CSR committee and
CSR Policy on July 14, 2021. The committee charter and policy are
available on our website, at:
Charter: https://www.infosys.com/investors/corporate-
governance/documents/corporate-social-responsibility-
committee-charter.pdf
Policy: https://www.infosys.com/investors/
corporate-governance/documents/corporate-social-
responsibility-policy.pdf
The CSR report, including CSR activities as required under the
Companies Act, 2013, for the year ended March 31, 2022, 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,
Europe and Australia is over and above the statutory requirement
in India. Accordingly, during fiscal 2022, the Company has spent
`344.91 crore on various projects. The unspent balance of `51.79
crore is towards various ongoing projects mainly related to
COVID-19 relief efforts and will be transferred to the unspent
CSR account and spent in accordance with the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and
amendments thereunder.
Bengaluru
April 11, 2022
Sd/-
Kiran Mazumdar-Shaw
Chairperson
145
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation ESG committee
Kiran Mazumdar-Shaw
Chairperson
The ESG committee (“the Committee”) was constituted with effect from April 14, 2021. Infosys is one of the first Indian Companies to have
a voluntary Independent Board ESG committee to oversee the Company’s ESG priorities. The Committee comprises only independent
directors. As on March 31, 2022, the Committee comprised:
1. Kiran Mazumdar-Shaw, Chairperson
2. Chitra Nayak
3. Uri Levine
Objectives and responsibilities of the Committee
Committee governance
The main responsibility of the ESG committee is to guide the
ESG journey of the Company embarked from 2011. The ESG
committee charter can be accessed at https://www.infosys.com/
investors/corporate-governance/documents/environment-social-
governance-committee-charter.pdf.
The Company’s ESG Vision 2030 and ESG data book 2022
can be accessed at https://www.infosys.com/about/
corporateresponsibility.html.
1. Guide the creation of the ESG Vision 2030 and ambitions of
the Company and continuously review updates and progress
on the ESG vision and goals.
2. Review the ESG Operations Council and its working.
3. Ensure that the Company is taking the appropriate measures
to undertake and implement actions to further its ESG vision
and ambitions.
4. Review any statutory requirements for sustainability
reporting e.g., Business Responsibility and Sustainability
Reporting (BRSR) and guide Infosys’ leadership on global ESG
assessments.
5. Review and reassess the adequacy of ESG committee charter
periodically and recommend any proposed changes to the
Board for approval.
Composition and attendance
100%
Independence
3
Members
3
Meetings
100%
Attendance
146
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Attendance details of the ESG committee
ESG committee meeting
Name of the directors
Kiran Mazumdar-Shaw
Chitra Nayak
Uri Levine
Attendance percentage
1
Jul 13, 2021
Committee meeting dates
2
Oct 05, 2021
3
Jan 05, 2022
100%
100%
100%
Held
during
tenure
3
3
3
% of
attendance
100
100
100
3
3
3
Attended through video conference
Attended
ESG committee report for the year ended March 31, 2022
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 ESG committee charter for the Board’s approval
Approved the constitution of the ESG operations council and its charter
Reviewed the digital skilling and reskilling initiative of the Company
Monitored the Company’s progress on Diversity, Equity & Inclusion leadership, including training initiatives on unconscious bias
Reviewed the Company’s position with respect to ESG assessments and provided directions to address gaps
Reviewed client engagements on climate actions and sustainability
Reviewed performance against NGRBC principles, policies and tracked follow up action
Reviewed the progress on ESG ambitions
Frequency
A Annually
Q Quarterly
P Periodically
Q
P
P
A
Q
Q
A
P
Q
Bengaluru
April 11, 2022
Sd/-
Kiran Mazumdar-Shaw
Chairperson
147
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Risk management committee
D. Sundaram
Chairperson
The risk management committee (“the Committee”) comprises only independent directors. As on March 31, 2022, the Committee
comprised:
1. D. Sundaram, Chairperson
2. Kiran Mazumdar-Shaw
3. Michael Gibbs
4. Uri Levine
5. Bobby Parikh
6. Chitra Nayak
Objectives and responsibilities of the Committee
The primary objectives of the Committee are to assist the
Board in the following:
1. 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
2. To monitor and approve the enterprise risk management
framework and associated practices of the Company
3. To periodically assess risks to the effective execution of
business strategy by reviewing key leading indicators in this
regard
4. 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
5. To evaluate significant risk exposures of the Company and
assess the Management’s actions to mitigate the exposures in
a timely manner
6. To evaluate risks related to cybersecurity and ensure
appropriate procedures are in place to mitigate these risks in a
timely manner
7. To coordinate its activities with the audit committee in
instances where there is any overlap with audit activities
Composition and attendance
8. To review and reassess the adequacy of the Charter
periodically and recommend any proposed changes to the
Board for approval
9. 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
10. To appoint, remove and approve terms of remuneration of the
Chief Risk Officer
Committee governance
The Committee comprises only 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 2022.
Risk management committee charter
The risk management committee charter as amended on July 14,
2021 is available on the Company’s website, at
https://www.infosys.com/investors/corporate-governance/
documents/risk-management-committee-charter.pdf.
100%
Independence
6
Members
4
Meetings
100%
Attendance
148
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Attendance details of the risk management committee
Risk management committee meeting
Name of the directors
D. Sundaram
Kiran Mazumdar-Shaw
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Attendance percentage
Committee meeting dates
1
Apr 08, 2021
2
Jul 08, 2021
3
Oct 06, 2021
4
Jan 06, 2022
100%
100%
100%
100%
Held
during
tenure
4
4
4
4
4
4
% of
attendance
100
100
100
100
100
100
4
4
4
4
4
4
Attended through video conference
Attended
Risk management committee report for the year ended March 31, 2022
Activities of the Committee during the year
Frequency
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 risks and assessed mitigation actions put in place to tackle challenges arising due to geopolitical conflicts
including the crisis in Eastern Europe
Reviewed and reassessed the adequacy of the Committee’s charter and recommended any proposed changes to the Board for
approval.
Reviewed the governance of contractual liabilities
Reviewed assessment and mitigation of risks arising due to multiple waves of COVID-19, covering all the areas impacting the
organization. Reviewed the readiness of the organization for post-pandemic operational resilience.
Reviewed risks 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 the Company’s information security and data privacy policies, related system controls, GDPR and similar regulatory
requirements, risks and progress of mitigation actions.
Submitted regular reports and recommendations to the Board with respect to risk management and mitigation procedures.
Reviewed and approved the Enterprise Risk Management Framework of the Company
The Committee undertook an annual performance evaluation of its own effectiveness.
Frequency
A Annually
Q Quarterly
P Periodically
P
P
P
P
P
P
P
Q
Q
Q
Q
Q
A
A
Bengaluru
April 11, 2022
Sd/-
D. Sundaram
Chairperson
149
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Cybersecurity risk sub-committee
Michael Gibbs
Chairperson and cybersecurity expert
The cybersecurity risk sub-committee (“the sub-committee”) comprises only independent directors. As on March 31, 2022, the
sub-committee comprised:
1. Michael Gibbs, Chairperson and cybersecurity expert
2. D. Sundaram
3. Uri Levine
Committee governance
The risk management committee constituted a cybersecurity
risk sub-committee in April 2019. This sub-committee was
voluntarily constituted to focus on cybersecurity-related threats.
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
Composition and attendance
and recommends its findings, if any, to the risk management
committee. The sub-committee has appointed an external
consultant who is an expert in security engineering to advice and
guide the sub-committee on cybersecurity matters.
The sub-committee met four times during fiscal 2022.
100%
Independence
3
Members
4
Meetings
92%
Attendance
Attendance details of the cybersecurity risk sub-committee
Cybersecurity risk sub-committee meeting
Name of the directors
Michael Gibbs
D. Sundaram
Uri Levine
Attendance percentage
Committee meeting dates
1
Apr 05, 2021
2
Jul 08, 2021
3
Oct 06, 2021
4
Jan 05, 2022
67%
100%
100%
100%
Held
during
tenure
4
4
4
% of
attendance
100
100
75
4
4
3
Attended through video conference
Attended
Leave of absence
150
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Cybersecurity risk sub-committee report for the year ended March 31, 2022
Activities of the Committee during the year
Frequency
Reviewed security and IT vendor concentration and ownership pattern
Reviewed security culture and awareness initiatives along with consequence management for violations
Reviewed heightened external threat environment including risks from geopolitical conflicts
Reviewed the threat landscape and incident metrics, global ransomware attacks, log4j vulnerability and Infosys preparedness
Reviewed security program maturity assessment and external benchmarking
Frequency
A Annually
Q Quarterly
P Periodically
P
P
P
Q
A
US
April 05, 2022
Sd/-
Michael Gibbs
Chairperson
151
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Stakeholders relationship committee
D. Sundaram
Chairperson
The stakeholders relationship committee (“the Committee”) comprises only independent directors. As on March 31, 2022, the
Committee comprised:
1. D. Sundaram, Chairperson
2. Bobby Parikh
3. Chitra Nayak
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 Committee comprises three independent directors 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
The primary objectives of the Committee are to:
• NYSE guidelines, as applicable
1. Consider and resolve the security holders’ concerns or
•
Stakeholders relationship committee charter
complaints
2. Monitor and review the investor service standards of the
Stakeholders relationship committee charter
Company
3. Take steps to develop an understanding of the views of
shareholders about the Company, either through direct
interaction, analysts’ briefings or survey of shareholders
4. 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
Composition and attendance
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.
100%
Independence
3
Members
4
Meetings
100%
Attendance
152
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Attendance details of the stakeholders relationship committee
Stakeholders relationship committee meeting
Name of the directors
D. Sundaram
Bobby Parikh
U. B. Pravin Rao(1)
Chitra Nayak
Attendance percentage
Committee meeting dates
1
Apr 07, 2021
2
Jul 06, 2021
3
Oct 07, 2021
4
Jan 04, 2022
100%
100%
100%
100%
Held
during
tenure
4
4
3
4
% of
attendance
100
100
100
100
4
4
3
4
Attended through video conference
Attended
(1) Ceased to be a member of the Committee due to retirement effective December 12, 2021
Shareholding as on March 31, 2022
Shareholding mode
310
51,30,197
0.12%
Members
Shares
% Equity
Complaints received and resolved during the year
ended March 31, 2022
Details of complaints received during the year
2021
2022
2,010
2,010
3,312
3,312
22,28,255
420,16,08,444
99.88%
Complaints:
Received
Resolved
Dematerialized
Physical
Stakeholders relationship committee report for the year ended March 31, 2022
Activities of the Committee during the year
Frequency
Monitored and reviewed the Company’s performance in dealing with stakeholder grievances
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 internal audit report submitted by an independent auditor covering functioning of Registrar & Share Transfer Agent (RTA)
Reviewed the activities of Company’s investor relations, meetings held with investors, views of investors, analyst ratings, Total
Shareholders Return (TSR), shareholding pattern, large institutional buyers / sellers etc.
Periodically provided updates to the Board
Reviewed the adherence to the service standards and security assessment adopted in respect of various services being
rendered by RTA
The Committee undertook an annual performance evaluation of its own effectiveness.
Discussed on Environmental, Social and Governance (ESG) goals
Frequency
A Annually
Q Quarterly
P Periodically
A
P
P
A
Q
P
P
A
A
Bengaluru
April 11, 2022
Sd/-
D. Sundaram
Chairperson
153
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Fairness and excellence
Two of the core values of our C-LIFE, fairness and excellence are evident
in the workings of the Board, its evaluation and the compensation paid to
the directors and the executive leadership.
Board member evaluation
Board and executive leadership compensation
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 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.
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 undertaken on an annual basis.
The Board had engaged Egon Zehnder, a leadership advisory
firm on board matters, to conduct the Board evaluation for
fiscal 2022. The evaluation process focused on Board dynamics,
softer aspects, committee effectiveness and information flow
to the Board or its committees, among other matters. The
methodology included techniques such as questionnaires, 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 2022.
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.
154
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 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, key managerial personnel (KMP) and senior
management. Compensation of directors is approved at the
shareholders meeting or via postal ballot. Remuneration for the
executive directors and senior management comprises fixed
component and variable component, including stock incentives,
which are governed by the Infosys stock plans as approved by
the shareholders or any other plans as may be amended. The
committee makes a periodic appraisal of the performance of
executive directors based on appropriate performance criteria.
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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation 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, 2022 is ` 11.17 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, 2022.
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)
Lead Independent Director
Notes: 1 US$ = ` 75.79 as on March 31, 2022
in ` crore
1.14
0.19
2.27
0.38
0.23
0.23
0.15
0.08
0.01
0.23
in US$
150,000
25,000
300,000
50,000
30,000
30,000
20,000
10,000
1,000
30,000
(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.
(4) The payment is subject to deduction of tax at source (TDS) as required by applicable tax laws. If any tax is deducted at source as per applicable tax laws, a
certificate as prescribed by law will be issued for the amount of tax withheld. The Company shall seek necessary and relevant tax documents as per applicable
law in seeking waiver or reducing any applicable withholding taxes.
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.
Indemnification agreements
Materially significant related party transactions
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.
There have been no materially significant related party
transactions that may have potential conflict with the interests of
listed entity at large as provided in the Related party transactions
policy. The Related Party Transactions Policy is available on
our website, at https://www.infosys.com/investors/corporate-
governance/Documents/related-party-transaction-policy.pdf.
155
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Remuneration to directors in fiscal 2022
Name of director
Fixed salary
Base
salary
(A)
Retiral
benefits
(B)
Total fixed
salary
(A+B)
Non-executive and non-independent director
Bonus /
incentives /
variable pay
Perquisites
on account of
stock options
exercised(1)*
in ` crore
Commission
Total
Nandan M. Nilekani(2)
Executive directors
Salil Parekh(3)
U.B. Pravin Rao(4)(5)
Independent directors
Kiran Mazumdar-Shaw
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
–
–
–
–
5.69
2.95
0.38
0.13
6.07
3.08
12.62
7.99
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
52.33
26.19
–
–
–
–
–
–
–
–
–
–
71.02
37.26
2.11
2.21
1.87
1.61
1.66
1.71
2.11
2.21
1.87
1.61
1.66
1.71
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 2022 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 2,29,792 Restricted Stock Units (RSUs) under the 2015 Plan and 1,48,434 RSUs under the 2019
Plan during fiscal 2022
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 96,150 performance-based RSUs under the 2015 Plan effective May 2, 2021
ii) the grant of 18,340 annual time-based RSUs for fiscal 2022 under the 2015 Plan effective February 1, 2022
iii) the grant of 73,962 performance-based RSUs for fiscal 2022 under the 2019 Plan effective May 2, 2021. These 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 13, 2022, 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 `13 crore for fiscal 2023 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, 2022 and the number of RSUs will be calculated based on the market price at the close of trading on May 2, 2022.
(4) Perquisites value of stock incentives on account of exercise of 45,351 RSUs and 86,000 ESOPs under the 2015 Plan and 59,374 RSUs under the 2019 Plan during
fiscal 2022.
(5) U.B. Pravin Rao retired as Chief Operating Officer and Whole-time Director effective December 12, 2021.
* The RSUs were issued at par value.
156
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation
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 2022.
Employment agreements with executive director
Name of the director
Effective date of
executive employment
agreement
Details of shareholders’ approval
on the agreements
Website links
Salil Parekh, Chief Executive
Officer and Managing Director
January 2, 2018
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
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
Tax fees
Others
Total
in ` crore
Fiscal 2022
Fiscal 2021
18
3
1
22
16
2
1
19
157
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Integrity and transparency
&
Relationship with stakeholders
Our Company upholds integrity and transparency in all transactions and communications to
stakeholders. Our stakeholders are our partners in the path to sustained value creation and
therefore, our relationship with stakeholders and clear communication with them is at the centre
of all disclosures and reports. The stakeholders are privy to all actions and decisions of the Board.
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.
158
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation
Dividend for fiscal 2022
Dividend cycle
Interim 2021-22
Dividend cycle
Final 2021-22
Record date Oct 27, 2021
Payout date
Nov 10, 2021
` 15.00
Record date
Jun 01, 2022
Payout date
Jun 28, 2022
` 16.00
Total dividend
` 31.00
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
Dividend per
share (`)(1)
Date of declaration
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
2020-2021
2021-2022
Final
Interim
Final
Interim
Final
Interim
Final & Special
Interim
Special
Final
Interim
Final
Interim
Final
Interim
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
15.00
15.00
Due date
for transfer
July 23, 2022
June 22, 2015
October 12, 2015
November 17, 2022
June 18, 2016
July 17, 2023
October 14, 2016
November 19, 2023
June 24, 2017
July 25, 2024
October 24, 2017
November 24, 2024
June 23, 2018
July 24, 2025
October 16, 2018
November 14, 2025
January 11, 2019
February 10, 2026
June 22, 2019
July 21, 2026
October 11, 2019
November 11, 2026
June 27, 2020
July 28, 2027
October 14, 2020
November 17, 2027
June 19, 2021
July 20, 2028
October 13, 2021
November 16, 2028
Amount (`)(2)
1,49,88,448
1,09,39,450
1,60,31,777
1,36,91,843
2,13,75,715
2,29,31,454
4,67,85,135
2,03,15,499
1,19,20,004
2,81,47,445
2,40,78,793
2,59,64,031
3,01,37,600
3,43,90,416
3,92,80,980
(1) Not adjusted for bonus issue
(2) Amount unclaimed as on March 31, 2022
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
Year
2021-22
2021-22
2020-21
2020-21
2019-20
2019-20
Type of dividend
Dividend declared on
Date of transfer to IEPF
Amount transferred to IEPF
Interim 2014-15
Final 2013-14
Interim 2013-14
Final 2012-13
Interim 2012-13
Final 2011-12
October 10, 2014
June 14, 2014
October 18, 2013
June 15, 2013
October 12, 2012
June 9, 2012
November 12, 2021
July 19, 2021
November 24, 2020
July 20, 2020
November 19, 2019
July 19, 2019
82,69,260
1,19,89,432
80,44,220
95,13,423
67,14,375
1,23,64,864
159
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Shares transferred to IEPF
During the year, the Company transferred 1,608 and 2,546 shares on August 17, 2021 and December 10, 2021, 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 26,522 shares to respective
shareholders. IEPF holds 2,79,039 shares as on March 31, 2022 on account of transfer of shares under IEPF Rules. During the year, the
Company also transferred ₹ 82,73,970 as corporate benefits (dividend) arising on shares already transferred to IEPF.
Schedule of events
41st Annual General Meeting
Date and time
Mode: Video conference and other audio-visual means
E-voting dates: June 20 - 24, 2022
June 25, 2022, Saturday
4:00 p.m. IST
Participation through video-conferencing
https://agm.onwingspan.com/InfosysAGM
Webcast and transcripts
https://www.infosys.com/Investors/
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 2022-23 are as given below:
Jun 30, 2022
Sep 30, 2022
Dec 31, 2022
Mar 31, 2023
Quarter ending
Jun 16, 2022
to Jul 26, 2022
Sep 16, 2022
to Oct 15, 2022
Dec 16, 2022
to Jan 14, 2023
Mar 16, 2023
to Apr 15, 2023
Jul 24, 2022
Oct 13, 2022
Jan 12, 2023
Apr 13, 2023
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
Investor conferences / events held in fiscal 2022
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.
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. Infosys also
participates in various sell-side / broker-arranged investor conferences where the Management interacts with investors in one-on-one or
group meetings. The details of such participation are sent to the exchanges as well as updated on the website.
1
13
14
Q2
1
10
11
Q3
1
8
9
Q4
2
8
10
Q1
Conferences
Company events
160
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Investor grievances and investor contacts
Registered office and global locations
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 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 Limited (formerly known as 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. For addresses and contact
details for investor queries, RTA, depositary banks, depositories
for equity shares in India and stock exchanges please refer to
the Investor contacts.
The address of our registered office is Electronics City, Hosur
Road, Bengaluru 560100, Karnataka, India.
Our operations are spread across 247 locations in 54 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-presence2022.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 2022. For details of foreign exchange risk
and hedging activities, please refer to the Management’s
discussion and analysis.
Share capital
426,06,60,846
Holding as on March 31, 2021
5,58,07,337
Buyback of shares
420,48,53,509
18,85,132
ESOP allotment
Holding as on March 31, 2022
420,67,38,641
Category-wise shareholding as on March 31, 2022
33.30% Foreign Portfolio Investors
140,08,17,886
3.23% Insurance Companies
13,58,65,045
7.72% Qualified Institutional Buyer
32,45,92,217
2.54% Others
10,68,74,385
Total number of shares
420,67,38,641
American Depositary Receipts
66,63,70,669
15.84%
Mutual Funds
56,74,92,704
13.49%
Promoters & Promoter Group
55,16,82,338
13.11%
Resident Individuals (Public)
45,30,43,397
10.77%
161
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation Shareholders holding more than 1% of the shares as on March 31, 2022
The details of shareholders (non-promoters and non-ADR holders) holding more than 1% (PAN-based) of the equity as on March 31,
2022 are as follows:
Name of the shareholder
% (percentage of holding)
Life Insurance Corporation of India
SBI Mutual Fund
Government of Singapore
ICICI Prudential Mutual Fund
NPS Trust
UTI Mutual Fund
Vanguard Emerging Markets Stock Index Fund,
A Series of Vanguard International Equity Index Fund
Government Pension Fund Global
Vanguard Total International Stock Index Fund
ICICI Prudential Life Insurance Company Limited
HDFC Mutual Fund
3.27%
1.98%
1.59%
5.78%
1.30%
1.26%
1.17%
1.14%
1.09%
1.07%
1.06%
Distribution of shareholding as on March 31, 2022
No. of shares held No. of holders
% to holders
% to equity
1-1
2-10
11-50
51-100
101-200
201-500
501-1,000
1,001-5,000
5,001-10,000
10,001 and above
1,68,830
7,67,127
6,76,477
2,44,275
1,67,628
1,17,954
43,050
30,934
4,679
7,611
34.42%
30.35%
7.58%
10.96%
7.52%
5.29%
1.93%
1.39%
0.21%
0.34%
0.00%
0.11%
0.44%
0.46%
0.60%
0.90%
0.74%
1.52%
0.78%
Total
22,28,565
100.00%
Dematerialization of shares and liquidity
No. of shares
24,33,47,641
13,76,49,448
8,32,93,278
6,69,73,751
5,46,86,418
5,29,28,594
4,93,74,108
4,78,57,919
4,56,49,109
4,48,48,179
4,46,67,685
No. of shares
1,68,830
44,57,834
1,84,95,022
1,91,80,912
2,54,47,112
3,79,13,412
3,11,09,438
6,39,88,908
3,29,53,579
94.44%
100.00%
397,30,23,594
420,67,38,641
% to total equity
99.88%
0.12%
Shareholders(1)
22,28,565
Number of shares
420,67,38,641
22,28,255
310
420,16,08,444
51,30,197
Demat mode
Physical mode
(1) The total number of shareholders as on March 31, 2022 is 22,28,565 and based on PAN is 21,28,827. There will be a difference in the number of shareholders, since shareholders can
have multiple demat accounts under a single PAN.
Listing on stock exchanges
Codes
Exchange
Reuters
Bloomberg
162
India
BSE
INFY
INFY.BO
INFO IB
NSE
INFY
INFY.NS
INFO IS
Global
NYSE
INFY
INFY.K
INFY US
The listing fees for fiscal 2022 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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation 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:
2021-22
Months
April
May
June
July
August
September
October
November
December
January
February
March
Total
High (₹)
1,480.00
1,415.50
1,590.85
1,623.45
1,755.60
1,787.50
1,848.25
1,808.65
1,913.00
1,953.70
1,792.95
1,924.00
BSE
Low (₹)
Volume (A)
1,320.35
1,311.80
1,362.20
1,535.00
1,620.00
1,658.00
1,661.25
1,669.55
1,690.00
1,665.05
1,665.00
1,681.00
1,03,76,097
97,13,239
1,17,78,709
84,30,714
83,70,552
66,82,904
1,06,40,935
35,81,770
51,93,486
59,16,379
76,63,498
83,87,534
9,67,35,817
High (₹)
1,477.55
1,416.25
1,591.00
1,623.40
1,757.00
1,788.00
1,848.00
1,808.95
1,909.80
1,953.90
1,792.80
1,923.30
NSE
Total volume
Low (₹)
Volume (B)
(A+B) (No.)
1,320.00
1,311.30
1,365.00
1,533.75
1,619.20
1,655.00
1,661.05
1,669.15
1,691.50
1,665.00
1,665.00
1,681.00
17,43,75,276
18,47,51,373
11,06,35,877
12,03,49,116
14,72,98,100
15,90,76,809
10,95,13,508
11,79,44,222
13,27,48,512
14,11,19,064
11,39,57,923
12,06,40,827
14,44,40,594
15,50,81,529
10,45,26,424
10,81,08,194
10,94,72,023
11,46,65,509
14,16,19,689
14,75,36,068
12,89,28,283
13,65,91,781
15,44,20,688
16,28,08,222
157,19,36,897
166,86,72,714
The volume traded / outstanding shares (%) in the last three fiscals is as follows:
Fiscal
2021-22
2020-21
2019-20
Volume (BSE)
Volume (NSE)
Volume (BSE +NSE)
3
4
4
44
74
66
47
78
70
Note: The number of shares outstanding was 354,03,67,972 as of March 31, 2022. ADSs have been excluded for the purpose of this calculation.
Stock market data – NYSE
2021-22
Months
April
May
June
July
August
September
October
November
December
January
February
March
Total
Note:
High ($)
Low ($)
High (`)
Low (`)
Volume (No.)
19.56
19.48
21.51
22.14
24.14
24.08
24.28
24.09
25.60
26.39
23.85
25.21
17.24
17.81
19.08
20.50
22.21
22.07
21.73
22.14
21.89
21.72
21.04
22.04
1,460.73
1,414.67
1,594.81
1,643.75
1,792.88
1,758.80
1,828.04
1,794.22
1,909.87
1,952.86
1,784.32
1,908.27
1,292.66
1,307.79
1,397.23
1,533.40
1,651.98
1,627.66
1,629.10
1,654.08
1,646.19
1,633.34
1,578.84
1,664.52
15,28,02,724
10,11,18,985
15,86,44,996
11,74,46,284
10,28,77,287
13,62,23,890
22,00,18,610
12,58,80,092
11,79,92,241
23,81,21,083
21,52,12,584
22,73,37,315
191,36,76,091
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, 2022 was
66,63,70,669. The percentage of volume traded for the year at NYSE, to the total float was 287%.
163
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation
ADS premium compared to price quoted on NSE
(`)
2,000
1,600
1,200
800
400
ADS(`)
Equity(`)
Premium/
(Discount)
(%)
4.0
2.0
0.0
-2.0
April
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
1,375.50
1,379.59
1,345.79
1,500.41
1,585.54
1,725.03
1,706.23
1,706.68
1,722.09
1,795.39
1,806.11
1,712.98
1,830.25
1,352.94
1,473.16
1,575.02
1,695.63
1,703.70
1,716.41
1,735.22
1,794.86
1,829.05
1,729.06
1,835.57
-0.3%
-0.5%
1.9%
0.7%
1.7%
0.1%
-0.6%
-0.8%
0.0%
-1.3%
-0.9%
-0.3%
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, 2022, there were 125,008 record holders of ADRs evidencing 66,63,70,669 ADSs (1 ADS = 1 equity share).
Infosys share price versus the NSE Nifty 50 index
160
140
120
100
80
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Infosys
NIFTY 50
Note: Infosys share price and NSE Nifty 50 index values on April 1, 2021 have been baselined to 100.
164
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Infosys share price versus the S&P BSE Sensex (Sensex)
140
120
100
80
60
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Infosys
BSE Sensex
Note: Infosys share price and Sensex values on April 1, 2021 have been baselined to 100.
Credit ratings
S&P upgraded the rating on Infosys to ‘A’ from ‘A-‘. Moody’s also
changed their rating outlook to ‘Stable’ from ‘Negative’ following
sovereign outlook change. There has been no change in credit
ratings from Dun & Bradstreet and CRISIL during the year.
Rating agency
Rating
Outlook
Moody’s
Standard & Poor’s
Dun & Bradstreet
CRISIL
Shareholders
Baa1
A
5A1
AAA
Stable
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.
165
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation 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
Date and time
Venue
Special resolution
passed
March 31,
2021
40th AGM: June 19,
2021 at 4 p.m. IST
Held through Video
conferencing /other
Audio visual means
1. Approval for the buyback of equity shares of
the Company
2. Reappointment of Michael Gibbs as an
independent director
March 31,
2020
39th AGM: June 27,
2020 at 4 p.m. IST
Held through Video
conferencing /other
Audio visual means
None
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/2021/agm-2021-
transcript.pdf
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/agm-2019-
transcript.pdf
Participation and voting at 41st AGM
Pursuant to the General Circular numbers 21/2021, dated
December 14, 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 41st
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 41st 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.
Board interaction with clients, employees, institutional
investors, governments and the media
The Chairman, the CEO & MD, 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 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.
166
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation Legal compliance
In everything we do, we comply with the law of the land. All disclosures and policies
to this effect, including details of non-compliance, regulatory orders, certifications
and complaints, are made available in this corporate governance report.
Details of non-compliance
Complaints pertaining to sexual harassment
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.
The details of complaints filed, disposed off and pending during
the financial year pertaining to sexual harassment are provided
in the Business responsibility and sustainability report of this
Integrated Annual Report.
Regulatory orders
Prevention of insider trading
There were no regulatory orders pertaining to the
Company for fiscal 2022.
CEO and CFO certification
As required by the Listing Regulations, the CEO and CFO
certification is provided in this Integrated 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,
2022. 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.
The Whistleblower Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/whistleblower-policy.pdf.
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 April 13, 2022. 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.
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
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.
167
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsCG ReportFinancial statementsStrategy reviewApproaching value creation 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, 2022, 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 13, 2022
Sd/-
P.G. Hegde
Hegde & Hegde
Company Secretaries
FCS:1325 / C.P.No: 640
UDIN: F001325D000060571
168
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCG ReportStrategy reviewApproaching value creation 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
SVP, 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
VP, Company Secretary
Tel: 91 80 4116 7775 Fax: 91 80 2852 0754
Email: investors@infosys.com
Depositary bank (ADS)
United States
Deutsche Bank Trust Company Americas
Corporate Bank - Depositary Receipts
Floor 17S, 1 Columbus Circle
New York NY, USA 10019
Tel : 1 212 250 2500
India
Deutsche Bank AG, Filiale Mumbai
Corporate Bank – Depositary Receipts
The Capital, C-70, G Block
Bandra Kurla Complex, Mumbai 400 051, India
Tel: 91 22 7180 4875
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
For queries relating to Business Responsibility and
Sustainability Report
Aruna C. Newton
AVP - Head - Diversity and Inclusion. HRD
Tel: 91 80 2852 0261
Email: arunacnewton@infosys.com
Registrar and share transfer agents
KFin Technologies Limited
Selenium Tower B, Plot Nos. 31 & 32,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad - 500032
Contact person
C Shobha Anand
Deputy Vice President,
KFin Technologies Limited
Toll Free Number 1800-309-4001
Email: einward.ris@kfintech.com
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
Central Depository Services (India) Limited
Marathon Futurex, A-Wing,
25th floor, Mafatlal Mills Compound
NM Joshi Marg,Lower Parel (East), Mumbai 400013
Contact No: +91 22 23002041/23002033
169
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsInvestor contactsFinancial statementsStrategy reviewApproaching value creation Addresses of stock exchanges
In India
National Stock Exchange of India Ltd.
Exchange Plaza, C-1, Block G,
Bandra Kurla Complex,
Bandra (E), Mumbai – 400 051
Tel No: (022) 26598100-14 / 66418100
BSE Ltd.
Phiroze Jeejeebhoy Towers
Dalal Street, Kala Ghoda, Mumbai 400 001, India
Phones: 91-22-22721233/4, 91-22-66545695 (Hunting)
Outside India
New York Stock Exchange
11 Wall Street, New York, NY 10005, US
Tel: 1 212 656 3000
170
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsInvestor contactsStrategy reviewApproaching value creation Risk management report
“During the fiscal, businesses around the world, including ours, faced several macro risks such as the continued
impact of the pandemic, geo-political events in Eastern Europe, tightening of supply chains, demand for talent
and inflation. Our enterprise risk management processes were instrumental in keeping the Company focused
on our most important priorities toward all our stakeholders.”
Deepak Padaki
EVP and Group Head – Corporate Strategy, and Chief Risk Officer
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 also enables the identification of underlying
opportunities during risk assessment, which are then further
evaluated and actionized by the business. 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
The 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.
The 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, climate change events, human conflicts, system failures and cybersecurity attacks.
The 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.
171
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsRM ReportFinancial statementsStrategy reviewApproaching value creation Integrated Enterprise Risk Management Framework
STRATEGY
Strategy and
business objectives
Vision and
mission
Values and
culture
Strategic and
stakeholder
goals
Derived
goals
PERFORMANCE EVALUATION AND RISK MANAGEMENT
GOVERNANCE
Risk-enabled decision-making
8-layer governance
Risk identification
Risk management
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
Board of Directors
Risk Management
Committee (RMC)
of the Board
Cybersecurity
Sub-Committee
Risk councils
Office of
risk management
Sub-risk councils
Unit risk councils
Project and
account risk teams
Aligned 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
Intelligent risk analytics – Live Enterprise
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
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.
172
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsRM ReportStrategy reviewApproaching value creation
Highlights of fiscal 2022
During fiscal 2022, 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 in
identifying, assessing and managing primary and secondary
risks – so as to ensure the smooth delivery of services to our
clients, transparent communication with all stakeholders
and fulfilling our social responsibility while ensuring
employee safety and health.
The risk office assessed, monitored and reported on risks
related to strategic programs covering sales, cost optimization,
automation, employee engagement and retention. Specifically,
these included risks arising from the multiple waves of the
pandemic, readiness for post-pandemic operational resilience,
geopolitical and macro-economic events such as the conflict in
Eastern Europe, contractual liabilities, heightened cybersecurity
threats, employee attrition and data protection regulations.
While the Company tracks several risks to its business as
mentioned in the Management’s Discussion and Analysis section
of this Integrated Annual Report, the key risks are described
below along with the Company’s approach to mitigate them.
Key risks
Mitigation approach
Adverse geo-political, economic or health events may impact demand
for our offerings and /or technology and talent supply chain.
Commoditization of traditional offerings may impact our market share
and profitability.
Broad-based growth to reduce concentration in any single region,
client or industry, operational agility to assess and respond to
situations
Investment in launching innovative new offerings, a broad portfolio of
interconnected services and solutions, and focused growth of digital
capabilities
Talent attrition beyond acceptable levels may impact our ability to
staff projects or optimize cost structures.
Employee engagement and care, holistic employee retention and
recognition policies, focus on career and leadership development
Cost inflation may impact our cost structure and longer-term
profitability.
Effective operations with sustainable cost optimization levers,
automation and planned capex program
Disruptive technologies such as cloud, software-as-a-service and
automation software may diminish the value of some of our service
offerings (emerging risk).
Robust alliance strategy, consulting and industry-domain-knowledge-
led solutions, reskilling program for employees into newer
technologies and methodologies, and large deal program
Cyber attacks that breach our information network or failure to
protect sensitive information of our stakeholders in accordance with
applicable laws may impact our operations or result in significant
regulatory penalties.
Robust cybersecurity framework, controls, governance, preparedness
for response to incidents, insurance, region-specific data protection
controls and awareness campaigns
New regulations or amendments to existing regulations (e.g.,
immigration, wages, tax, sanctions) may have an adverse impact on
our operations (emerging risk).
Active engagement with policymakers and trade associations,
well-governed compliance framework and controls, and de-risked
operations
If our employees operate remotely for extended periods, it may
adversely impact their productivity, our information security controls
and the social capital of the organization.
Implement a hybrid operational model that balances client
requirements, evolving employee preferences, legal requirements and
information security risks
Physical disasters or climate change events may adversely impact our
operations.
Well-established and tested business continuity plans, crisis
management policy, distributed operations, sustainability and
community engagement initiatives
Cybersecurity risk management
Cyber risks, being one of the key risks, is managed through multi-
layered controls with a defense-in-depth approach starting from
the thoughtfully-crafted Cybersecurity Strategy, supplemented
by policies, processes and controls (preventive, detective, and
corrective). Our strategy is focussed on four areas: transparency
& experience, continual improvement & compliance, cyber
resilience, and building & maintaining a positive cybersecurity
culture within the organization, thus making cybersecurity a
sustainable and repeatable process throughout the organization.
A high-level working group, the enterprise Information Security
Council (ISC) has been established, which is responsible for
governing and overseeing the Information Security Management
System (ISMS) at Infosys. ISC focuses on establishing, directing,
monitoring, and executing the information security program
with representation from various departments and business
units at Infosys and reports to the Operational Risk Council for
highlighting key risks to the executive leadership.
173
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsRM ReportFinancial statementsStrategy reviewApproaching value creation 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, 2022, 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, 2022.
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 13, 2022
174
Sd/-
Salil Parekh
Chief Executive Officer and Managing Director
Sd/-
Nilanjan Roy
Chief Financial Officer
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsCEO and CFO certificationApproaching value creationStrategy review Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2022
Index
A Independent Auditor’s Report .......................................................................................................................................................................................................176
B Balance Sheet .......................................................................................................................................................................................................................................188
C Statement of Profit and Loss ...........................................................................................................................................................................................................190
D Statement of Changes in Equity ....................................................................................................................................................................................................192
E Statement of Cash Flows ..................................................................................................................................................................................................................198
F Overview and notes to the standalone financial statements .............................................................................................................................................200
1. Overview
1.1 Company overview .....................................................................................................................................................................................................................200
1.2 Basis of preparation of financial statements .....................................................................................................................................................................200
1.3 Use of estimates and judgments ............................................................................................................................................................................................200
1.4 Critical accounting estimates and judgments ...................................................................................................................................................................200
1.5 Recent accounting pronouncements ...................................................................................................................................................................................201
2. Notes to the financial statements
2.1 Property, plant and equipment ...............................................................................................................................................................................................201
2.2 Goodwill and other intangible assets ...................................................................................................................................................................................204
2.3 Leases ...............................................................................................................................................................................................................................................205
2.4 Capital work-in-progress ...........................................................................................................................................................................................................207
2.5 Investments ....................................................................................................................................................................................................................................208
2.6 Loans .................................................................................................................................................................................................................................................213
2.7 Other financial assets ..................................................................................................................................................................................................................214
2.8 Trade receivables .........................................................................................................................................................................................................................214
2.9 Cash and cash equivalents ........................................................................................................................................................................................................215
2.10 Other assets ..................................................................................................................................................................................................................................215
2.11 Financial instruments .................................................................................................................................................................................................................216
2.12 Equity ...............................................................................................................................................................................................................................................224
2.13 Other financial liabilities ...........................................................................................................................................................................................................230
2.14 Trade payables ..............................................................................................................................................................................................................................231
2.15 Other liabilities .............................................................................................................................................................................................................................232
2.16 Provisions .......................................................................................................................................................................................................................................232
2.17 Income taxes .................................................................................................................................................................................................................................232
2.18 Revenue from operations .........................................................................................................................................................................................................235
2.19 Other income, net .......................................................................................................................................................................................................................238
2.20 Expenses ........................................................................................................................................................................................................................................238
2.21 Employee benefits ......................................................................................................................................................................................................................239
2.22 Reconciliation of basic and diluted shares used in computing earning per share ............................................................................................243
2.23 Contingent liabilities and commitments ...........................................................................................................................................................................243
2.24 Related party transactions ......................................................................................................................................................................................................244
2.25 Corporate social responsibility (CSR)...................................................................................................................................................................................252
2.26 Segment reporting .....................................................................................................................................................................................................................253
2.27 Ratios ...............................................................................................................................................................................................................................................253
2.28 Function-wise classification of Statement of Profit and Loss .....................................................................................................................................254
175
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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, 2022, 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, 2022 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.
176
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 judgment.
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 2.18 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.
177
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 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.
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 judgment
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 2.18 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 using the 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.
178
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 consolidated financial statements, 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.
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 is also 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.
•
179
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 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)
c)
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.
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, 2022 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2022 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.
iv.
(a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
180
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation (b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person or entity, including foreign
entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any material misstatement.
v.
As stated in Note 2.12.3 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance
with Section 123 of the Act, as applicable.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in
compliance with Section 123 of the Act.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of
the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123
of the Act, as applicable.
2. As required by the Companies (Auditor’s Report) Order, 2020 (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: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 22039826AGZSRL7491
181
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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, 2022 in
conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
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 Act.
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 judgment, 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.
182
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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, 2022, 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: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 22039826AGZSRL7491
183
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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)
To the best of our information and according to the explanations provided to us by the Company and the books of account and records
examined by us in the normal course of audit, we state that:
i.
In respect of the Company’s Property, Plant and Equipment and Intangible Assets:
(a)
(A) The Company has maintained proper records showing full particulars, including quantitative details and situation of
Property, Plant and Equipment and relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a program of physical verification of Property, Plant and Equipment and right-of-use assets so to cover
all the assets once every three years 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 Property, Plant and Equipment were due for verification during the
year and 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)
Based on our examination of the property tax receipts and lease agreement for land on which building is constructed,
registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title in respect of self-
constructed buildings and title deeds of all other immovable properties (other than properties where the company is the
lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included
under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.
(d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible
assets during the year.
(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2022 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.
ii.
(a)
The Company does not have any inventory and hence reporting under clause 3(ii)(a) of the Order is not applicable.
(b) The Company has not been sanctioned working capital limits in excess of ₹ 5 crore, in aggregate, at any points of time
during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under
clause 3(ii)(b) of the Order is not applicable.
iii.
The Company has made investments in, companies, firms, Limited Liability Partnerships, and granted unsecured loans to other
parties, during the year, in respect of which:
(a)
(b)
(c)
(d)
The Company has not provided any loans or advances in the nature of loans or stood guarantee, or provided security to any
other entity during the year, and hence reporting under clause 3(iii)(a) of the Order is not applicable.
In our opinion, the investments made and the terms and conditions of the grant of loans, during the year are, prima facie,
not prejudicial to the Company’s interest.
In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been
stipulated and the repayments of principal amounts and receipts of interest are generally been regular as per stipulation.
In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at
the balance sheet date.
(e) No loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans
granted to settle the overdues of existing loans given to the same parties.
(f)
The Company has not granted any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable.
The Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted,
investments made and guarantees and securities provided, as applicable.
The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of
the Order is not applicable.
The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the
Companies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
iv.
v.
vi.
184
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation vii.
In respect of statutory dues:
(a)
In our opinion, the Company has generally been regular in depositing undisputed statutory dues, including Goods and
Services tax, Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise,
Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees’ State
Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material
statutory dues in arrears as at March 31, 2022 for a period of more than six months from the date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2022 on
account of disputes are given below:
Nature of the statute Nature of dues
Forum where Dispute is Pending
Period to which the Amount
Relates
Amount
₹ crore
The Income Tax Act,
1961
Income Tax
Income Tax
Income Tax Appellate Tribunal (2)
AY (1) 2012-13 and AY (1) 2016-17
1,030
Appellate Authority upto
Commissioner level
AY (1) 2008-09 to AY (1) 2011-12;
AY (1) 2013-14 to AY (1) 2022-23
5,216
Customs Act, 1962
Duty of Custom
Specified Officer of SEZ
FY (1) 2008-09 to FY (1) 2011-12
Duty of Excise
Supreme Court of India (4)
FY (1) 2005-06 to FY (1) 2015-16
Central Excise Act,
1944
Duty of Excise
Customs Excise and Service Tax
Appellate Tribunal
FY (1) 2015-16
FY (1) 2019-20
Goods and Service
Tax Act, 2017
Goods and Service
Tax
Appellate Authority upto
Commissioner level
5
68
- (5)
6
Sales Tax Act and VAT
Laws
Sales Tax
Appellate Authority upto
Commissioner level (4)
FY (1) 2006-07 to FY (1) 2010-11
and FY (1) 2014-15 to FY (1) 2016-17 21
Sales Tax
High Court of Andhra Pradesh
FY (1) 2007-08
Finance Act, 1994
Service Tax
Service Tax
Customs Excise and Service Tax
Appellate Tribunal (3)
Appellate Authority upto
Commissioner level
FY (1) 2004-05 to FY (1) 2017-18
FY (1) 2015-16 to FY 2017-18
The National Internal
Revenue Code of 1997
Corporate Income
tax
Commissioner of Bureau of Internal
Revenue, Philippines
FY (1) 2017-18
The National Internal
Revenue Code of 1997
The National Internal
Revenue Code of 1997
Income Tax
Assessment Act (ITAA
1936)
Withholding tax
Commissioner of Bureau of Internal
Revenue, Philippines
FY (1) 2017-18
Value Added Tax
Commissioner of Bureau of Internal
Revenue, Philippines
FY (1) 2017-18
Corporate Income
tax
Administrative Appeals Tribunal,
Australia
FY (1) 2011-12 to FY (1) 2016-17
UK Finance Act 1998
Corporation Tax
Her Majesty’s Revenue and
Customs (HMRC) Tax Officer, United
Kingdom(4)
FY (1) 2014-15 to FY (1) 2016-17
Central Sales Tax Act,
1956
The Karnataka [Gram
Swaraj and Panchayat
Raj] Act, 1993
Central Sales Tax
Appellate Authority
upto Commissioner Level
FY (1) 2016-17
Panchayat Property
Tax
City Municipal Council
FY (1) 2017-18 and FY (1) 2018-19
Panchayat Property
Tax
High Court of
Bangalore (Karnataka)
FY (1) 2018-19 to FY (1) 2020-21
- (5)
327
1
1
1
2
188
197
-(5)
16
16
Footnotes:
(1) AY=Assessment Year; FY= Financial Year.
(2) In respect of A.Y. 2012-13, stay order has been granted against ₹1,029 crore disputed which has not been deposited.
(3) Stay order has been granted against ₹60 crore disputed which has not been deposited.
(4) Stay order has been granted.
(5) Less than ₹ 1 crore.
185
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation viii.
There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix.
(a)
The Company has not taken any loans or other borrowings from any lender. Hence reporting under clause 3(ix)(a) of the
Order is not applicable.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(c)
The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of the
year and hence, reporting under clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie,
not been used during the year for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any
entity or person on account of or to meet the obligations of its subsidiaries.
(f)
(a)
x.
The Company has not raised any loans during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable.
The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible
debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi.
(a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under
rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the
date of this report.
(c) We have taken into consideration the whistle blower complaints received by the Company during the year (and upto the
date of this report), while determining the nature, timing and extent of our audit procedures.
The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable
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.
xii.
xiii.
xiv.
(a)
In our opinion the Company has an adequate internal audit system commensurate with the size and the
nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date,
in determining the nature, timing and extent of our audit procedures.
xv.
In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons
connected with its directors. and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi.
(a)
In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.
(b)
In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies
(Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii.
The Company has not incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during the year.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and
Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that
Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of
the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
186
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation xx.
(a)
There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a
transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of
Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.
(b)
In respect of ongoing projects, the Company has transferred unspent Corporate Social Responsibility (CSR) amount as at
the end of the previous financial year, to a Special account within a period of 30 days from the end of the said financial year
in compliance with the provision of section 135(6) of the Act.
In respect of ongoing projects, the Company has not transferred the unspent Corporate Social Responsibility (CSR) amount
as at the Balance Sheet date out of the amounts that was required to be spent during the year, to a Special Account in
compliance with the provision of sub-section (6) of section 135 of the said Act till the date of our report since the time
period for such transfer i.e. 30 days from the end of the financial year has not elapsed till the date of our report.
Place: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 22039826AGZSRL7491
187
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Note
As at March 31,
2022
2021
in ₹ crore
2.1
2.3
2.4
2.2
2.2
2.5
2.6
2.7
2.17
2.17
2.10
2.5
2.8
2.9
2.6
2.7
2.10
11,384
3,311
411
211
32
22,869
34
727
970
5,585
1,416
46,950
5,467
18,966
12,270
219
6,580
8,935
52,437
99,387
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
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
188
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Balance Sheet (contd.)
Particulars
Note
As at March 31,
2022
2021
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
Lease liabilities
Trade payables
Total outstanding dues of micro enterprises and small
enterprises
Total outstanding dues of creditors other than micro
enterprises and small enterprises
Other financial liabilities
Other current liabilities
Provisions
Income tax liabilities (net)
Total current liabilities
Total equity and liabilities
2.12
2.3
2.13
2.17
2.15
2.3
2.14
2.13
2.15
2.16
2.17
2,103
67,203
69,306
3,228
676
841
360
5,105
558
3
2,666
11,269
7,381
920
2,179
24,976
99,387
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
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
D. Sundaram
Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
2,130
69,401
71,531
3,367
259
511
649
4,786
487
–
1,562
8,359
4,816
661
1,737
17,622
93,939
189
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
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
2.18
2.19
2.20
2.20
2.1, 2.2.2 & 2.3
2.3
2.20
2.17
2.17
Year ended March 31,
2022
1,03,940
3,224
1,07,164
51,664
16,298
731
2,985
433
1,511
2,429
128
2,490
78,669
28,495
6,960
300
21,235
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
190
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Statement of Profit and Loss (contd.)
Particulars
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
Fair value changes on investments, net
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 (₹)
Note
Year ended March 31,
2022
2021
2.17 & 2.21
2.5 & 2.17
2.11 & 2.17
2.5 & 2.17
(98)
97
(8)
(39)
(48)
148
120
25
(102)
191
21,187
18,239
50.27
50.21
42.37
42.33
Weighted average equity shares used in computing earnings per equity share
Basic
Diluted
2.22
2.22
4,22,43,39,562
4,25,94,38,950
4,22,95,46,328
4,26,30,92,514
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
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
D. Sundaram
Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
191
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 1
9
2
Statement of Changes in Equity
Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
Equity
Instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
in ₹ crore
Total equity
attributable
to equity
holders
of the
Company
2,129
54
3,082
111
268
52,419
106
297
3,907
49
(15)
(173)
62,234
Balance as at
April 1, 2020
Changes in
equity for the
year ended
March 31, 2021
Profit for the year
–
–
–
–
–
18,048
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
18,048
–
–
148
148
–
–
–
–
–
–
–
–
–
120
–
–
120
–
–
–
–
–
–
–
–
–
–
25
–
25
–
–
–
–
–
–
–
–
–
–
–
–
18,048
–
–
–
–
–
–
–
(102)
(102)
120
25
46
18,239
Remeasurement
of the net defined
benefit liability /
asset, net*
Equity
instruments
through other
comprehensive
income, net*
(Refer to Note 2.5
and 2.17)
Fair value changes
on derivatives
designated as
cash flow hedge,
net* (Refer to
Note 2.11)
Fair value changes
on investments,
net* (Refer to Note
2.5 and 2.17)
Total
comprehensive
income for the
year
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
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
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 2.12)
Transfer on
account of options
not exercised
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
Effect of
modification of
equity-settled
share-based
payment awards
to cash-settled
awards (Refer to
Note 2.12)
1
9
3
–
–
–
–
–
(1,554)
1,554
–
–
–
–
–
–
–
–
–
(3,204)
–
–
3,204
–
–
–
–
–
–
–
–
–
–
–
967
–
–
(967)
–
–
–
–
–
–
–
–
–
–
–
–
260
–
–
–
–
3
(260)
(3)
–
–
–
–
–
–
–
–
–
–
1
–
–
–
8
–
–
–
–
–
–
–
9
–
–
–
–
–
–
–
85
–
–
–
–
85
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
1
9
4
Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
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
Employee stock
compensation
expense (Refer to
Note 2.12)
Income tax
benefit arising on
exercise of stock
options
Reserves recorded
upon business
transfer under
common control
(Refer to Note 2.5.1)
Dividends
Balance as at
March 31, 2021
–
–
–
–
–
–
–
–
–
–
253
–
45
–
–
–
–
–
–
–
(176)
–
–
–
–
–
–
(9,158)
–
–
–
–
–
–
–
–
2,130
54
2,906
111
581
57,518
1,663
372
6,144
–
–
–
–
–
–
169
–
–
10
–
–
–
–
253
45
(176)
(9,158)
(127)
71,531
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
Statement of Changes in Equity (contd.)
Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
Equity
instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
in ₹ crore
Total equity
attributable
to equity
holders
of the
Company
Balance as at
April 1, 2021
Changes in
equity for the
year ended
March 31, 2022
Profit for the year
Remeasurement
of the net defined
benefit liability /
asset, net*
Equity
instruments
through other
comprehensive
income, net*
(Refer to Note 2.5
and 2.17)
Fair value changes
on derivatives
designated as
cash flow hedge,
net* (Refer to
Note 2.11)
Fair value changes
on investments,
net* (Refer to Note
2.5 and 2.17)
Total
comprehensive
income for the
year
1
9
5
2,130
54
2,906
111
581
57,518
1,663
372
6,144
169
10
(127)
71,531
–
–
–
–
–
–
–
–
–
21,235
–
–
–
–
–
–
–
–
–
–
–
21,235
–
–
(98)
(98)
–
–
–
–
–
–
–
–
–
97
–
–
97
–
–
–
–
–
–
–
–
–
–
(8)
–
(8)
–
–
–
–
–
–
–
–
–
–
–
–
21,235
–
–
–
–
–
–
–
(39)
(39)
97
(8)
(137)
21,187
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 1
9
6
Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
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
Buyback of equity
shares (Refer to
Note 2.12) #
Transaction
cost relating to
buyback*
Amount
transferred
to capital
redemption
reserve upon
buyback
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 2.12)
Transfer on
account of options
not exercised
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
(28)
–
–
–
–
–
–
(640)
(8,822)
(1,603)
–
–
–
(24)
–
–
–
–
–
–
–
–
–
(11,093)
–
(24)
–
–
–
28
–
–
(28)
–
–
–
–
–
–
–
–
–
–
–
(2,794)
–
–
2,794
–
–
–
–
–
–
–
–
–
1,012
–
–
(1,012)
–
–
–
–
–
–
–
–
–
–
–
–
218
–
–
–
–
1
(218)
(1)
–
–
–
–
–
–
–
–
–
–
1
–
–
–
10
–
–
–
–
–
–
–
11
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Equity
share
capital
Reserves and surplus
Other comprehensive income
Other equity
Capital reserve
Capital
reserve
Other
reserves(2)
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (1)
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
Employee stock
compensation
expense (Refer to
Note 2.12)
Income tax
benefit arising on
exercise of stock
options
Reserves recorded
upon business
transfer under
common control
(Refer toNote 2.5.1)
Dividends
Balance as at
March 31, 2022
* net of tax
–
–
–
–
–
–
–
–
–
–
(62)
–
–
–
–
–
–
–
–
393
3
–
–
60
–
–
–
393
–
–
–
63
–
–
–
–
2,103
54
2,844
139
172
55,449
606
7,926
266
–
–
–
(12,700)
–
–
–
–
9
–
–
–
–
2
–
–
(62)
(12,700)
(264)
69,306
#
Including tax on buyback of ₹1,893 crore
(1) 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 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.
(2) 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
Bengaluru
April 13, 2022
1
9
7
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Statement of Cash Flows
Accounting policy
Cash flows are reported using the indirect method, whereby profit for the year 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 and amortization
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
Redemption of deposits with corporations
Loan given to subsidiaries
Loan repaid by subsidiaries
Proceeds from redemption of debentures
Investment in subsidiaries
Payment towards business transfer for entities under common control
Proceeds from liquidation of a subsidiary
Escrow and other deposits pertaining to buyback
Redemption of Escrow and other deposits pertaining to buyback
Payment of contingent consideration pertaining to acquisition of business
Other receipts
198
in ₹ crore
Note
Year ended March 31,
2022
2021
2.1, 2.2.2 & 2.3
2.17
2.19
2.12
2.14
21,235
18,048
2,429
7,260
117
128
2,604
6,429
152
126
(2,617)
(1,795)
372
72
87
(5,725)
(1,125)
1,112
5,487
28,832
(6,736)
22,096
(1,787)
(745)
607
–
73
536
(127)
(109)
–
(420)
420
–
47
297
(47)
(32)
(1,414)
(684)
(5)
2,284
25,963
(6,061)
19,902
(1,720)
(588)
405
(76)
328
623
(1,530)
(237)
173
–
–
(125)
49
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Payments to acquire investments
Preference and equity securities
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
Note
Year ended March 31,
2022
2021
(5)
–
(48,139)
(31,814)
–
(3,897)
(1,456)
(3,450)
(5)
9
(318)
–
(3,398)
(7,346)
(13)
73
Liquid mutual fund units and fixed maturity plan securities
48,219
32,996
Tax-free bonds and government bonds
Non-convertible debentures
Certificates of deposit
Government securities
Others
Interest received
Dividend received from subsidiary
Net cash (used in) / from investing activities
Cash flow from financing activities
Other receipts
Payment of lease liabilities
Buyback of equity shares including transaction cost and tax on buy back
Shares issued on exercise of employee stock options
Payment of dividends
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 year
Cash and cash equivalents at the end of the year
Supplementary information
Restricted cash balance
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
20
1,939
787
1,452
5
1,658
1,218
–
944
900
2,704
–
1,340
321
(3,150)
(6,309)
134
(598)
(11,125)
11
(12,697)
(24,275)
(13)
(5,329)
17,612
12,270
–
(420)
–
9
(9,155)
(9,566)
23
4,027
13,562
17,612
60
154
2.3
2.9
2.9
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
199
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 Electronic 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 13, 2022.
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") (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 there after.
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
200
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 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 involves 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 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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 incomplete 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.
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. Also, refer
to Notes 2.17 and 2.23.
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 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. Also, refer to Note 2.1.
1.5 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. On March 23, 2022, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2022, as below.
Ind AS 16, Property Plant and equipment – The amendment
clarifies that excess of net sale proceeds of items produced over
the cost of testing, if any, shall not be recognized in the profit or
loss but deducted from the directly attributable costs considered
as part of cost of an item of property, plant, and equipment. The
effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022. The Company has evaluated
the amendment and there is no impact on its Standalone
financial statements.
Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets –
The amendment specifies that the ‘cost of fulfilling’ a contract
comprises the ‘costs that relate directly to the contract’. Costs
that relate directly to a contract can either be incremental
costs of fulfilling that contract (examples would be direct labor,
materials) or an allocation of other costs that relate directly
to fulfilling contracts (an example would be the allocation of
the depreciation charge for an item of property, plant and
equipment used in fulfilling the contract). The effective date for
adoption of this amendment is annual periods beginning on
or after April 1, 2022, although early adoption is permitted. The
Company has evaluated the amendment and the impact is not
expected to be material.
2. Notes to the financial statements
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 charge in respect of periodic depreciation is
derived at after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life.
The Company depreciates property, plant and equipment over
their estimated useful lives using the straightline 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 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. The
useful 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.
201
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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
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, 2022 are as follows :
Particulars
Land –
Freehold
Buildings(1)(2)
Plant and
machinery(2)
Office
equipment(2)
Computer
equipment(2)
in ₹ crore
Vehicles
Total
Furniture
and
fixtures(2)
Leasehold
improvements
Gross carrying
value as at
April 1, 2021
Additions
Deletions*
Gross carrying
value as at
March 31, 2022
Accumulated
depreciation as at
April 1, 2021
Depreciation
Accumulated
depreciation on
deletions*
Accumulated
depreciation as at
March 31, 2022
Carrying value as
at April 1, 2021
Carrying value as
at March 31, 2022
1,397
32
–
9,546
569
–
3,141
244
(331)
1,195
62
(7)
6,530
1,281
(572)
1,952
130
(12)
788
63
(34)
44
24,593
–
–
2,381
(956)
1,429
10,115
3,054
1,250
7,239
2,070
817
44
26,018
–
–
–
(3,460)
(2,600)
(374)
(224)
(891)
(108)
(4,870)
(1,434)
(864)
(191)
(376)
(148)
(32)
(13,663)
(5)
(1,914)
–
330
6
571
11
25
–
943
–
(3,834)
(2,494)
(993)
(5,163)
(1,614)
(499)
(37)
(14,634)
1,397
6,086
1,429
6,281
541
560
304
1,660
518
412
12
10,930
257
2,076
456
318
7
11,384
* During the year ended March 31, 2022, certain assets which were old and not in use having gross book value of ₹ 291 crore (net book value: Nil) were retired.
202
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The changes in the carrying value of property, plant and equipment for the year ended March 31, 2021 were as follows :
Particulars
Land –
Freehold
Buildings(1)(2)
Plant and
machinery(2)
Office
equipment(2)
Computer
equipment(2)
in ₹ crore
Vehicles
Total
Furniture
and
fixtures(2)
Leasehold
improvements
Gross carrying
value as at
April 1, 2020
Additions
Additions through
business transfer
Deletions
Gross carrying
value as at
March 31, 2021
Accumulated
depreciation as at
April 1, 2020
Depreciation
Provision for
impairment (Refer to
Note 2.25)
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
–
(1)
9,038
508
–
–
3,038
113
–
(10)
1,094
110
–
(9)
5,690
1,875
975
6
(141)
92
–
(15)
669
134
2
(17)
43
22,763
1
2,015
–
–
8
(193)
1,397
9,546
3,141
1,195
6,530
1,952
788
44
24,593
–
–
–
–
(3,114)
(2,053)
(346)
(273)
(787)
(112)
(4,197)
(1,246)
(804)
(202)
(248)
(145)
(26)
(11,671)
(6)
(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
1,397
6,086
985
541
307
1,493
629
421
17
11,092
304
1,660
518
412
12
10,930
(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.
The aggregate depreciation has been included
under depreciation and amortization expense in the
Statement of Profit and Loss.
Tangible assets provided on operating lease to subsidiaries as at
March 31, 2022 and March 31, 2021 are as follows :
Particulars
Land
Buildings
Plant and machinery
Cost Accumulated
depreciation
in ₹ crore
Net book
value
34
–
186
186
30
30
–
–
104
98
30
30
34
–
82
88
–
–
Particulars
Furniture and fixtures
Computer equipment
Office equipment
Particulars
Cost Accumulated
depreciation
Net book
value
23
24
3
3
16
16
23
24
3
3
16
16
–
–
–
–
–
–
in ₹ crore
Year ended March 31,
2022
2021
Aggregate depreciation charged
on above assets
Rental income from subsidiaries
6
52
7
53
203
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The allocation of goodwill to operating segments as at March 31,
2022 and March 31, 2021 is as follows :
2.2 Goodwill and other intangible assets
2.2.1 Goodwill
The summary of changes in the carrying amount of
goodwill is as follows :
Segment
in ₹ crore
Particulars
As at March 31,
Financial services
Carrying value at the beginning
Goodwill on business transfer
(Refer to Note 2.5.1)
Carrying value at the end
2022
167
44
211
2021
29
138
167
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Operating segments without
significant goodwill
Total
in ₹ crore
As at March 31,
2022
2021
64
34
28
27
21
174
37
211
55
26
22
22
17
142
25
167
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 labor, 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, 2022 are as follows :
Particulars
Gross carrying value as at April 1, 2021
Additions through business transfer
Deletions during the year
Gross carrying value as at March 31, 2022
Accumulated amortization as at April 1, 2021
Amortization expense
Accumulated amortization on deletions
Accumulated amortization as at March 31, 2022
Carrying value as at March 31, 2022
Carrying value as at April 1, 2021
Estimated useful life (in years)
Estimated remaining useful life (in years)
Customer-
related
Software-
related
Trade name-
related
Others
113
–
–
113
(88)
(16)
(104)
9
25
7
1
54
–
–
54
(12)
(19)
(31)
23
42
2
1
26
–
–
26
26
–
–
26
(26)
(26)
–
(26)
–
–
5
–
–
(26)
–
–
5
–
in ₹ crore
Total
219
–
–
219
(152)
(35)
–
(187)
32
67
204
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The changes in the carrying value of acquired intangible assets for the year ended March 31, 2021 were as follows :
Particulars
Gross carrying value as at April 1, 2020
Addition 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
Software-
related
Trade name-
related
in ₹ crore
Others
Total
113
–
–
113
(72)
(16)
–
(88)
25
41
7
2
–
54
–
54
–
(12)
–
(12)
42
–
2
2
26
–
–
26
(23)
(3)
–
(26)
–
3
5
–
26
–
–
26
(22)
(4)
–
(26)
–
4
5
–
165
54
–
219
(117)
(35)
–
(152)
67
48
The amortization expense has been included under depreciation and amortization expense in the Standalone Statement of Profit and Loss
Research and development expenditure
Research and Development expense recognized in net
profit in the Statement of Profit and Loss for the years ended
March 31, 2022 and March 31, 2021 is ₹ 529 crore and ₹ 508
crore, respectively.
2.3 Leases
Accounting policy
The Company as a lessee
The Company’s lease asset classes consist of leases for land,
buildings and computers. The Company assesses whether a
contract contains a lease, at 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 twelve 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.
As a lessee, the Company determines 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’s 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.
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.
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.
205
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 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 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 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.
The changes in the carrying value of ROU assets for the year ended March 31, 2022 are as follows :
Particulars
Balance as at April 1, 2021
Additions(1)
Deletion
Depreciation
Balance as at March 31, 2022
Category of ROU asset
Land
Buildings
Computers
556
2,766
–
–
(4)
552
306
(18)
(433)
2,621
113
68
–
(43)
138
(1) Net of adjustments on account of modifications and lease incentives
The changes in the carrying value of ROU assets for the year ended March 31, 2021 were as follows :
Particulars
Balance as at April 1, 2020
Additions (1)
Additions through business transfer
Deletions
Depreciation
Balance as at March 31, 2021
(1) Net of adjustments on account of modifications and lease incentives
Category of ROU asset
Land
Buildings
Computers
554
7
–
–
(5)
556
2,209
1,010
8
(89)
(372)
2,766
42
92
–
–
(21)
113
in ₹ crore
Total
3,435
374
(18)
(480)
3,311
in ₹ crore
Total
2,805
1,109
8
(89)
(398)
3,435
206
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The aggregate depreciation expense on ROU assets is
included under depreciation and amortization expense in the
Statement of Profit and Loss.
The movement in the net investment in sublease in
ROU asset during the years ended March 31, 2022 and
March 31, 2021 is as follows :
The break-up of current and non-current lease liabilities as at
March 31, 2022 and March 31, 2021 is as follows :
Particulars
in ₹ crore
Particulars
As at March 31,
Balance at the beginning of the period
Current lease liabilities
Non-current lease liabilities
Total
2022
558
3,228
3,786
2021
487
3,367
3,854
The movement in lease liabilities during the years ended March
31, 2022 and March 31, 2021 is as follows :
Particulars
As at March 31,
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
2022
3,854
394
–
126
(18)
(628)
58
3,786
2021
3,165
1,198
10
125
(99)
(536)
(9)
3,854
in ₹ crore
As at March 31,
2022
385
2021
433
13
(47)
14
365
14
(49)
(13)
385
Interest income accrued during the
period
Lease receipts
Translation difference
Balance at the end of the period
The details regarding the contractual maturities of net
investment in sublease of ROU asset as at March 31, 2022 and
March 31, 2021 on an undiscounted basis are as follows :
Particulars
Less than one year
One to five years
More than five years
Total
2.4 Capital work-in-progress
in ₹ crore
As at March 31,
2022
2021
54
230
126
410
50
216
179
445
in ₹ crore
Particulars
As at March 31,
The details regarding the contractual maturities of lease liabilities
as at March 31, 2022 and March 31, 2021 on an undiscounted
basis are as follows :
Capital work-in-progress
Total capital work-in-progress
2022
411
411
2021
906
906
Particulars
As at March 31,
in ₹ crore
The capital work-in-progress ageing schedule for the years
ended March 31, 2022 and March 31, 2021 is as follows :
Less than one year
One to five years
More than five years
Total
2022
637
2,100
1,519
4,256
2021
585
2,109
1,751
4,445
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 ₹12
crore and ₹ 24 crore for the years ended March 31, 2022 and
March 31, 2021, respectively.
Particulars
Amount in capital work -in-
progress for a period of
in ₹ crore
Total
Projects in
progress
Total capital
work-in-progress
Less
than 1
year
267
407
267
407
1-2
years
2-3
years
More
than 3
years
48
268
48
268
51
37
51
37
45
194
45
194
411
906
411
906
207
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, the project-wise details
of when the project is expected to be completed as of March 31, 2022 and March 31, 2021 are as follows :
Particulars
Projects in progress
NG-SZ-SDB1
BN-SP-RETRO
KL-SP-SDB1
BH-SZ-MLP
IN-OS-SDB
MY-SZ-SDB8
Total capital work-in-progress
2.5 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
Government bonds
Tax-free bonds
Government securities
Non-convertible debentures
Total current investments
Total carrying value
208
To be completed in
Less than 1
year
1-2 years
2-3 years More than 3
years
89
–
30
–
–
–
116
–
–
407
–
160
235
567
–
–
–
–
27
–
–
67
–
–
–
–
27
67
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
in ₹ crore
Total
89
–
30
–
27
–
116
67
–
407
–
160
262
634
in ₹ crore
As at March 31,
2022
2021
9,061
–
1,318
194
7
76
1,901
–
3,459
6,853
8,933
536
1,318
167
7
42
2,131
13
3,669
5,302
22,869
22,118
1,337
3,141
13
200
362
414
5,467
28,336
1,326
–
–
–
–
711
2,037
24,155
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
Particulars
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited (1)
33,828 (3,38,23,444) equity shares of ₹10,000 (₹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
1,31,18,40,000 (1,31,18,40,000) equity shares of ₹10 each, fully paid up
Infosys Nova Holdings LLC #
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
Skava Systems Private Limited
25,000 (25,000) shares of ₹10 each, fully paid up
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.ã r.l.
20,000 (20,000) 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 (27,50,71,070) shares of BRL 1 per share, fully paid up
in ₹ crore, except as otherwise stated
As at March 31,
2022
2021
662
660
369
65
76
1,010
99
369
65
76
900
99
1,323
1,323
1
1
1,312
1,312
2,637
10
2,637
10
59
2
59
59
2
59
582
582
7
7
380
380
17
–
17
–
337
337
209
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Infosys Romania
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Bulgaria
4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH
25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Green Forum
10,00,000 (NIL) shares ₹10 per share, fully paid up
Infosys Automotive and Mobility GmbH
Infosys Germany GmbH
25,000 (Nil) shares EUR 1 per share, fully paid up
Infosys Turkey Bilgi Tekn
1 (Nil) share Turkish Liras 10,000 per share, fully paid up
Investments 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
Investments carried at amortized cost
Investments in debentures of subsidiary
EdgeVerve Systems Limited
Nil (5,36,00,000) Unsecured redeemable, non-convertible debentures of ₹ 100 each fully paid up
Investments carried at fair value through profit or loss (Refer to Note 2.5.2)
Compulsorily convertible debentures
Others (2)
Investments carried at fair value through other comprehensive income (Refer to Note 2.5.2)
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
210
As at March 31,
2022
34
2021
34
2
2
1
15
–
–
2
2
–
–
–
–
1,318
1,318
10,379
10,251
–
–
7
76
83
192
2
194
1,901
–
1,901
3,459
6,853
10,312
22,869
536
536
7
42
49
165
2
167
2,131
13
2,144
3,669
5,302
8,971
22,118
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
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 amortized cost
Tax-free bonds
Government bonds
Investments carried at fair value through other comprehensive income
Government securities
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
# Aggregate amount of impairment in value of investments
Reduction in the fair value of assets 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
(1) On March 17, 2022, Infosys Limited acquired non-controlling interest of 0.01% of the voting interests in Infosys BPM Limited.
(2) Uncalled capital commitments outstanding as of March 31, 2022 and March 31, 2021 was ₹11 crore and ₹10 crore, respectively.
Refer to Note 2.11 for accounting policies on financial instruments.
The details of amounts recorded in other comprehensive income are as follows :
As at March 31,
2022
2021
1,337
1,337
3,141
3,141
200
13
213
362
414
776
5,467
28,336
13,202
1,003
12,552
15,134
94
854
10,379
2,114
14,423
1,420
1,326
1,326
–
–
–
–
–
–
711
711
2,037
24,155
11,826
713
11,507
12,329
94
854
10,251
2,680
9,849
1,375
in ₹ crore
Particulars
Year ended
March 31, 2022
March 31, 2021
Gross
Tax
Net
Gross
Tax
Net
Net gain / (loss) on
Non-convertible debentures
Government securities
Certificates of deposit
Equity and preference securities
(7)
(56)
2
119
1
22
(1)
(22)
(6)
(34)
1
97
(5)
(114)
(1)
136
1
17
-
(16)
(4)
(97)
(1)
120
211
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Method of fair valuation
Class of investment
Method
Liquid mutual fund units
Quoted price
Tax-free bonds and government bonds
Quoted price and market observable inputs
Non-convertible debentures
Quoted price and market observable inputs
Government Securities
Certificates of deposit
Unquoted equity and preference securities
Quoted price and market observable inputs
Market observable inputs
Discounted cash flows method, Market multiples
method, Option pricing model
Unquoted compulsorily convertible debentures
Discounted cash flows method
Others
Discounted cash flows method, Market multiples
method, Option pricing model
in ₹ crore
Fair value as at March 31,
2022
1,337
2,438
3,873
7,215
3,141
194
7
76
2021
1,326
2,527
4,380
5,302
–
167
7
42
Certain quoted investments are classified as Level 2 in the
absence of active market for such investments.
2.5.1 Business transfer – Brilliant Basics Limited
On August 04, 2021, the Board of Directors of Infosys authorized
the Company to execute a Business Transfer Agreement and
related documents with its wholly-owned subsidiary, Brilliant
Basics Limited, to transfer the business of Brilliant Basics Limited
to Infosys Limited, subject to securing the requisite regulatory
approvals for a consideration based on an independent
valuation. Subsequently on November 01, 2021, the company
entered into a business transfer agreement to transfer the
business of Brilliant Basics Limited for a consideration of
₹ 109 crore resulting in recognition of a business transfer
reserve of ₹ 62 crore.
The details of the assets and liabilities taken over upon business
transfer are as follows :
Particulars
Goodwill
Net assets / (liabilities), others
Total
Less : Consideration payable
Business transfer reserve
in ₹ crore
Total
44
3
47
109
(62)
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 business
transfer was recorded in ‘Business Transfer Adjustment Reserve’
during the year ended March 31, 2021.
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
Kallidus Inc.
Skava Systems
Private Limited
in ₹ crore
Total
Goodwill
Intangible assets
Deferred tax assets
/ (liabilities)
Net assets /
(liabilities), others
Total
Less : Consideration
payable
Business transfer
reserve
89
54
(14)
(152)
(23)
171
(194)
49
–
138
54
1
(13)
34
84
66
(118)
61
237
18
(176)
212
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.5.2 Details of Investments
The details of non-current other investments in preferred stock and equity instruments as at March 31, 2022 and March 31, 2021 are as follows :
in ₹ crore, except as otherwise stated
As at March 31,
2022
2021
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
1,10,59,340 (11,05,934) 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.
Nil (11,80,358) Series C-1 Preferred Stock
Nil (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 (3,886) compulsorily convertible debentures, fully paid up, par value ₹ 19,300 each
Others
Stellaris Venture Partners India
Total
2.6 Loans
Particulars
Non-current
in ₹ crore
As at March 31,
2022
2021
Particulars
Less : Allowance for credit
impairment
Loans considered good – Unsecured
Other loans
Loans to employees
Loans credit impaired – Unsecured
Other loans
34
34
30
30
Total non-current loans
Current
Loans considered good – Unsecured
Loans to subsidiaries
Other loans
Loans to employees
Loans to employees
–
23
Total current loans
Total loans
–
150
22
–
–
94
20
40
20
11
–
2
–
7
–
2
–
7
76
277
42
216
As at March 31,
2022
2021
–
–
34
23
–
30
–
96
219
219
253
133
229
259
213
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.7 Other financial assets
Particulars
Particulars
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)
in ₹ crore
As at March 31,
2022
2021
43
320
134
215
15
727
1
36
1,965
3,543
323
131
45
536
45
348
164
11
45
613
1
10
1,826
2,139
553
178
37
482
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
6,580
7,307
5,226
5,839
7,176
5,661
20
25
(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,
2022
2021
111
220
419
153
182
82
* Restricted deposits represent deposit 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.
2.8 Trade receivables
Particulars
Current
Trade receivable considered
good – Unsecured (1)
Less : Allowance for expected
credit loss
Trade receivable considered
good – Unsecured
Trade receivable – credit
impaired – Unsecured
Less : Allowance for credit
impairment
Trade receivable – credit
impaired – Unsecured
in ₹ crore
As at March 31,
2022
2021
19,454
16,817
488
423
18,966
16,394
85
85
–
120
120
–
Total trade receivables (2)
(1)
Includes dues from subsidiaries
(2)
Includes dues from companies where
directors are interested
18,966
16,394
268
203
–
–
The trade receivables ageing schedule for the years ended as on March 31, 2022 and March 31, 2021 is as follows :
Particulars
Undisputed trade receivables – considered good
Undisputed trade receivables – credit impaired
Disputed trade receivables – considered good
Disputed trade receivables – credit impaired
214
Not due
Outstanding for following periods from due date of
payment
Less than
6 months
6 months
to 1 year
1-2 years
2-3 years More than
3 years
in ₹ crore
Total
14,555
13,280
4,703
3,457
–
1
–
–
–
–
1
1
–
1
–
–
14,555
13,281
4,704
3,459
133
16
3
75
–
3
–
–
136
94
10
26
43
38
–
–
4
–
57
64
30
-
31
5
–
–
–
–
61
5
23
34
19,454
16,813
3
–
–
–
–
–
26
34
81
120
–
4
4
–
19,539
16,937
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 573
543
18,966
16,394
As at March 31,
2022
156
657
2021
175
687
Particulars
Less : Allowance for credit loss
Total trade receivables
Not due
Outstanding for following periods from due date of
payment
Total
Less than
6 months
6 months
to 1 year
1-2 years
2-3 years More than
3 years
Particulars
Balances with banks
Cash on hand
Others
2.9 Cash and cash equivalents
Particulars
in ₹ crore
As at March 31,
2022
2021
Unbilled revenues(2)
Withholding taxes and others
In current and deposit accounts
9,375
13,792
Current
Total non-current other assets
1,416
1,149
-
Advances other than capital advance
Payment to vendors for supply of
goods
Deposits with financial institutions
2,895
3,820
Total cash and cash equivalents
12,270
17,612
Others
Balances with banks in unpaid dividend
accounts
Deposit with more than 12 months
maturity
Balances with banks held as margin
money deposits against guarantees
36
33
1,471
11,948
Prepaid expenses (1)
Unbilled revenues(2)
Deferred contract cost(3)
Cost of obtaining a contract
1
71
Cost of fulfillment
183
131
1,174
5,365
874
3,904
350
40
27
13
Cash and cash equivalents as at March 31, 2022 and
March 31, 2021 include restricted cash and bank balances of ₹ 60
crore and ₹ 154 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 of time deposits, which can be
withdrawn by the Company at any point without prior notice or
penalty on the principal.
2.10 Other assets
Particulars
Non-current
Capital advances
Others
Prepaid expenses
Defined benefit assets
Deferred contract cost(3)
Cost of obtaining a contract
Cost of fulfillment
in ₹ crore
As at March 31,
2022
2021
87
82
10
151
273
141
64
9
57
16
Withholding taxes and others
1,589
1,832
Other receivables
Total current other assets
Total other assets
(1)
Includes dues from subsidiaries
234
8,935
10,351
204
3
6,784
7,933
237
(2) Classified as non-financial asset as the contractual right to
consideration is dependent on completion of contractual milestones.
(3)
Includes technology assets taken over by the Company from a
customer as a part of transformation project which is not considered
as distinct goods or services and the control related to the assets is not
transferred to the Company in accordance with Ind AS 115, Revenue from
contract with customers. Accordingly, the same has been considered
as a reduction to the total contract value and accounted as Deferred
contract cost. Further as at March 31, 2022, the Company has entered
into a financing arrangement with a third-party for these assets which
has been considered as financial liability. Also, refer to Note 2.13.
Withholding taxes and others primarily consist of input tax
credits and Cenvat recoverable from Government of India.
215
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
2.11 Financial instruments
Accounting policy
2.11.1 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.
2.11.2 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 fair value through other 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 are 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
216
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.
2.11.3 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.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.11.4 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 ‘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.
2.11.5 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 Company determines the allowance for credit losses
based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The Group
considers current and anticipated future economic conditions
relating to industries the Company deals with and the
countries where it operates.
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
Statement of Profit and Loss.
Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2022 are as follows :
Particulars
Amortized
cost
Financial assets /
liabilities at fair value
through profit or loss
Financial assets /
liabilities at fair value
through OCI
Total
carrying
value
in ₹ crore
Total fair
value
Mandatory
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Assets
Cash and cash equivalents
(Refer to Note 2.9)
Investments (Refer to Note 2.5)
Preference securities, Equity
instruments and others
Compulsorily convertible debentures
12,270
–
–
Tax-free bonds and government bonds
2,114
Liquid mutual fund units
Certificates of deposit
Non-convertible debentures
Government securities
Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)
Other financial assets (Refer to Note 2.7) (3)
Total
–
–
–
–
18,966
253
7,176
40,779
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12,270
12,270
76
7
–
1,337
–
–
–
–
–
111
1,531
194
–
–
–
–
–
–
–
–
–
–
–
–
–
3,141
3,873
7,215
–
–
20
270
7
270
7
2,114
2,438 (1)
1,337
3,141
3,873
7,215
1,337
3,141
3,873
7,215
18,966
18,966
253
253
7,307
7,216 (2)
194
14,249
56,753
56,986
217
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Amortized
cost
Financial assets /
liabilities at fair value
through profit or loss
Financial assets /
liabilities at fair value
through OCI
Total
carrying
value
Total fair
value
Mandatory
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Liabilities
Trade payables (Refer to Note 2.14)
Lease liabilities (Refer to Note 2.3)
Other financial liabilities (Refer to Note 2.13)
Total
2,669
3,786
10,084
16,539
–
–
–
–
–
–
8
8
–
–
–
–
–
–
3
3
2,669
3,786
2,669
3,786
10,095
16,550
10,095
16,550
(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 ₹91 crore
(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows :
Particulars
Amortized
cost
Financial assets /
liabilities at fair value
through profit or loss
Financial assets /
liabilities at fair value
through OCI
Total
carrying
value
in ₹ crore
Total fair
value
Mandatory
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Assets
Cash and cash equivalents
(Refer to Note 2.9)
Investments (Refer to Note 2.5)
Preference securities, equity
instruments and others
Compulsorily convertible debentures
17,612
–
–
Tax-free bonds and government bonds
2,144
Liquid mutual fund units
Redeemable, non-convertible
debentures (1)
Certificates of deposit
Non-convertible debentures
Government securities
Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)
Other financial assets (Refer to Note 2.7)(4)
Total
–
536
–
–
–
16,394
259
5,661
42,606
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
17,612
17,612
42
7
–
1,326
–
–
–
–
–
–
167
–
–
–
–
–
–
–
–
–
153
1,528
–
167
–
–
–
–
–
–
4,380
5,302
–
–
25
209
7
2,144
1,326
536
–
4,380
5,302
209
7
2,527 (2)
1,326
536
–
4,380
5,302
16,394
16,394
259
259
5,839
5,747 (3)
9,707
54,008
54,299
218
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Amortized
cost
Financial assets /
liabilities at fair value
through profit or loss
Financial assets /
liabilities at fair value
through OCI
Total
carrying
value
Total fair
value
Mandatory
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Liabilities
Trade payables (Refer to Note 2.14)
Lease Liabilities (Refer to Note 2.3)
Other financial liabilities (Refer to Note 2.13)
Total
1,562
3,854
6,873
12,289
–
–
–
–
–
–
14
14
–
–
–
–
–
–
–
–
1,562
3,854
6,887
12,303
1,562
3,854
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
For trade receivables and trade payables and other assets and 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.
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, 2022 is as follows :
Particulars
Assets
in ₹ crore
As at
March 31,
2022
Fair value measurement at end of the
year using
Level 1
Level 2
Level 3
Investments in tax-free bonds (Refer to Note 2.5)
Investments in government bonds (Refer to Note 2.5)
Investments in liquid mutual fund units (Refer to Note 2.5)
Investments in certificates of deposit (Refer to Note 2.5)
Investments in non-convertible debentures (Refer to Note 2.5)
Investments in government securities (Refer to Note 2.5)
Investments in equity instruments (Refer to Note 2.5)
Investments in preference securities (Refer to Note 2.5)
Investments in compulsorily convertible debentures (Refer to Note 2.5)
Other investments (Refer to Note 2.5)
Derivative financial instruments – gain on outstanding foreign exchange forward
and options contracts (Refer to Note 2.7)
Liabilities
2,425
13
1,337
3,141
3,873
7,215
2
192
7
76
131
1,238
13
1,337
–
3,472
7,177
–
–
–
–
–
1,187
–
–
3,141
401
38
–
–
–
–
131
Derivative financial instruments – loss on outstanding foreign exchange forward
and options contracts (Refer to Note 2.13)
11
–
11
–
–
–
–
–
–
2
192
7
76
–
–
During the year ended March 31, 2022, tax-free bonds and non-convertible debentures of ₹ 576 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
₹ 890 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.
219
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2021 was as follows :
Particulars
Assets
Investments in tax-free bonds (Refer to Note 2.5)
Investments in government bonds (Refer to Note 2.5)
Investments in liquid mutual fund units (Refer to Note 2.5)
Investments in non-convertible debentures (Refer to Note 2.5)
Investments in government securities (Refer to Note 2.5)
Investments in equity instruments (Refer to Note 2.5)
Investments in preference securities (Refer to Note 2.5)
Investments in compulsorily convertible debentures (Refer to Note 2.5)
Other investments (Refer to Note 2.5)
Derivative financial instruments – gain on outstanding foreign exchange forward
and options contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward and
options contracts (Refer to Note 2.13)
Liability towards contingent consideration (Refer to Note 2.13) (1)
(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5%.
in ₹ crore
As at
March 31,
2021
Fair value measurement at end of the
year using
Level 1
Level 2
Level 3
2,513
14
1,326
4,380
5,302
2
165
7
42
178
9
5
1,352
14
1,326
4,085
5,302
–
–
–
–
–
–
–
1,161
–
–
295
–
–
–
–
–
178
9
–
–
–
–
–
–
2
165
7
42
–
–
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.
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.
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 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.
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, tax-free bonds, 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.
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
220
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The foreign currency risk from financial assets and liabilities as at March 31, 2022 is as follows :
Particulars
Net financial assets
Net financial liabilities
Total
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
16,185
(8,202)
7,983
4,148
(1,689)
2,459
1,290
(678)
612
1,314
(956)
358
1,670
(875)
795
The foreign currency risk from financial assets and liabilities as at March 31, 2021 was as follows :
Particulars
Net financial assets
Net financial liabilities
Total
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
13,782
(5,959)
7,823
2,855
(1,058)
1,797
1,153
(643)
510
1,182
(787)
395
1,280
(492)
788
in ₹ crore
Total
24,607
(12,400)
12,207
in ₹ crore
Total
20,252
(8,939)
11,313
Sensitivity analysis between Indian Rupee and US Dollar
Particulars
Impact on the Company’s incremental operating margins
Year ended March 31,
2022
0.48%
2021
0.49%
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
As at March 31,
2022
2021
In million
In ` crore
In million
In ` crore
Forward contracts
In Euro
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 Swiss Franc
8
67
185
280
32
34
–
266
20
80
6
14
1,050
2,358
318
205
–
2,240
105
70
34
115
–
92
165
35
33
66
151
16
25
21
26
–
512
1,415
353
194
73
1,295
82
21
116
204
221
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
In Phillipine Peso
In US Dollar
In UK Pound Sterling
In South African rand
Options contracts
In Euro
In US Dollar
Total forwards and options contracts
The foreign exchange forward and options 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
in ₹ crore
As at March 31,
2022
2021
5,323
5,028
Later than one month and not later than three
months
11,973
6,698
Later than three months and not later than
one year
3,163
20,459
3,706
15,432
During the years ended March 31, 2022 and March 31, 2021, the
Company 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 hedge reserve as at March 31, 2022 are expected
to occur and reclassified to 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.
As at March 31,
2022
2021
In million
In ` crore
In million
In ` crore
–
1,004
44
45
81
677
–
7,622
438
24
682
5,131
20,459
800
1,012
15
–
65
403
121
7,392
151
–
557
2,946
15,432
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, 2022 and March 31, 2021 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,
2022
2021
10
(15)
102
(126)
(113)
3
2
160
(9)
10
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.
222
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
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
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 ₹ 18,966 crore and ₹ 16,394
crore as at March 31, 2022 and March 31, 2021, respectively and
unbilled revenue amounting to ₹ 9,279 crore and ₹ 6,229 crore
as at March 31, 2022 and March 31, 2021, respectively. Trade
receivables and unbilled revenue are typically unsecured and
are derived from revenue from customers majorly located in
the US and Europe. 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
top 5 customers and top 10 customers are as follows :
Particulars
Year ended March 31,
in %
Revenue from top 5 customers
Revenue from top 10 customers
Credit risk exposure
2022
11.9
20.5
2021
12.0
19.6
The Company’s credit period generally ranges from 30-75 days.
The allowance for lifetime expected credit loss on customer
balances recognized for the years ended March 31, 2022 and
March 31, 2021 is ₹ 93 crore and ₹ 146 crore, respectively.
in ₹ crore
As at March 31, 2022
As at March 31, 2021
Derivative
financial
asset
Derivative
financial
liability
Derivative
financial
asset
Derivative
financial
liability
167
(36)
131
(47)
36
(11)
190
(12)
178
(21)
12
(9)
The movement in credit loss allowance on customer
balance is as follows :
Particulars
Year ended March 31,
in ₹ crore
Balance at the beginning
Impairment loss recognized /
(reversed), net
Amounts written off
Translation differences
Balance at the end
2022
615
93
(49)
14
673
2021
580
146
(106)
(5)
615
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 invest 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, tax-free bonds, 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.
223
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation As at March 31, 2022, the Company had a working capital of ₹ 27,461 crore including cash and cash equivalents of ₹ 12,270 crore and
current investments of ₹ 5,467 crore. 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, 2022 and March 31, 2021, the outstanding compensated absences were ₹ 1,850 crore and ₹ 1,731 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, 2022 are as follows :
Particulars
Trade payables
Other financial liabilities (excluding liability towards contingent
consideration) on an undiscounted basis (Refer to Note 2.13)
Less than 1
year
2,669
9,496
1-2 years
2-4 years
4-7 years
Total
in ₹ crore
–
381
–
202
–
10
2,669
10,089
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2021 were as follows :
Particulars
Trade payables
Other financial liabilities (excluding liability towards
contingent consideration) (Refer to Note 2.13)
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)
Less than 1
year
1,562
6,705
5
1-2 years
2-4 years
4-7 years
Total
in ₹ crore
–
98
–
–
52
–
–
18
–
1,562
6,873
5
2.12 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
Capital redemption reserve
In accordance with Section 69 of the Indian Companies Act, 2013,
the Company creates capital redemption reserve equal to the
nominal value of the shares bought back as an appropriation
from the general reserve.
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. Amounts
have been utilized for bonus issue and share buyback from
share premium account.
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 the 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 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.
Other components of equity
Other components of equity include 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.
224
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.12.1 Equity share capital
Particulars
Authorized
Equity shares, ₹5 par value
4,80,00,00,000 (4,80,00,00,000)
equity shares
Issued, subscribed and paid up
in ₹ crore, except as otherwise stated
As at March 31,
2022
2021
2,400
2,400
Equity shares, ₹ 5 par value (1)
2,103
2,130
4,20,67,38,641 (4,26,06,60,846)
equity shares fully paid up
2,103
2,130
(1) Refer to Note 2.22 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 (ADS) 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, 2022
Bonus issue
The Company has allotted 2,18,41,91,490 fully paid-up shares of
face value ₹ 5 each during the quarter ended September 30, 2018
pursuant to bonus issue approved by the shareholders through
postal ballot. The bonus shares were issued by capitalization of
profits transferred from the general reserve. Bonus share of one
equity share for every equity share held, and a bonus issue, viz.,
a stock dividend of one American Depositary Share (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 from 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.
Buyback completed in September 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.
The shareholders approved the proposal of buyback of equity
shares recommended by its Board of Directors in the Annual
General meeting held on June 19, 2021.
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 June 25, 2021 and
was completed on September 8, 2021. During this buyback
period, the Company had purchased and extinguished a total of
5,58,07,337 equity shares from the stock exchange at a volume
weighted average buyback price of ₹ 1,648.53 per equity share
comprising 1.31% of the pre buyback paid up equity share capital
of the Company. The buyback resulted in a cash outflow of
₹ 9,200 crore (excluding transaction costs and tax on buyback).
The Company funded the buyback from its free reserves
including Securities Premium as explained in Section 68 of the
Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2022, the Company has created ‘Capital Redemption
Reserve’ of ₹ 28 crore equal to the nominal value of the above
shares bought back as an appropriation from the 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, 2022, 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.
2.12.2 Shareholding of promoters
The details of the shares held by promoters as at March 31,
2022 are as follows :
Promoter name
No. of shares
% of
total
shares
% change
during the
year
Sudha Gopalakrishnan
Rohan Murty
S. Gopalakrishnan
Nandan M. Nilekani
Akshata Murty
Asha Dinesh
Sudha N. Murty
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
2.27
1.45
0.99
0.97
0.93
0.92
0.82
–
–
–
–
–
–
–
225
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
Promoter name
No. of shares
% of
total
shares
% change
during the
year
Rohini Nilekani
Dinesh Krishnaswamy
Shreyas Shibulal
N. R. Narayana Murthy
Nihar Nilekani
Janhavi Nilekani
Kumari Shibulal
Deeksha Dinesh
Divya Dinesh
Meghana Gopalakrishnan
Shruti Shibulal
S. D. Shibulal
Promoters Group
Gaurav Manchanda
Milan Shibulal Manchanda
Nikita Shibulal Manchanda
Bhairavi Madhusudhan
Shibulal
Shray Chandra
Tanush Nilekani Chandra
2.12.3 Dividend
3,43,35,092
3,24,79,590
2,37,04,350
1,66,45,638
1,26,77,752
85,89,721
52,48,965
76,46,684
76,46,684
48,34,928
27,37,538
58,14,733
1,37,36,226
69,67,934
69,67,934
66,79,240
7,19,424
33,56,017
0.82
0.77
0.56
0.40
0.30
0.20
0.12
0.18
0.18
0.11
0.07
0.14
0.33
0.17
0.17
0.16
0.02
0.08
–
–
(0.71)
–
–
(27.74)
(41.00)
–
–
–
–
168.36
–
(50.00)
–
2.61
–
331.59
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.
Companies are required to pay / distribute dividend after
deducting applicable withholding income taxes. The remittance
of dividends outside India is governed by Indian law on
foreign exchange and is also subject to withholding tax
at applicable rates.
The amount of per share dividend recognized as distribution
to equity shareholders in accordance with Companies Act
2013 is as follows :
Particulars
Year ended March 31,
in ₹
Interim dividend for fiscal 2022
Final dividend for fiscal 2021
Interim dividend for fiscal 2021
Final dividend for fiscal 2020
2022
15.00
15.00
–
–
2021
–
–
12.00
9.50
During the year ended March 31, 2022, on account of the final
dividend for fiscal 2021 and interim dividend for fiscal 2022 the
Company has incurred a net cash outflow of ₹ 12,700 crore.
The Board of Directors, at its meeting on April 13, 2022,
recommended a final dividend of ₹ 16 per equity share for the
financial year ended March 31, 2022. This payment is subject to
the approval of shareholders in the Annual General Meeting (AGM) of the Company to be held on June 25, 2022, and if approved, would
result in a net cash outflow of approximately ₹ 6,731 crore.
The details of shareholder holding more than 5% shares as at March 31, 2022 and March 31, 2021 are as follows :
Name of the shareholder
As at March 31, 2022
As at March 31, 2021
Deutsche Bank Trust Company Americas (Depository of
ADRs – legal ownership)
Life Insurance Corporation of India
66,63,70,669
24,33,47,641
15.84
5.78
73,24,89,890
25,00,63,497
17.19
5.87
Number of shares
% held
Number of shares
% held
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2022 and March 31, 2021 is as follows :
Particulars
As at March 31, 2022
As at March 31, 2021
Number of shares
Amount Number of shares
As at the beginning of the period
4,26,06,60,846
2,130
4,25,89,92,566
Add : Shares issued on exercise of employee stock options
18,85,132
Less : Shares bought back
As at the end of the period
5,58,07,337
4,20,67,38,641
1
28
2,103
16,68,280
–
4,26,06,60,846
Amount
2,129
1
–
2,130
in ₹ crore, except as stated otherwise
226
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.12.4 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 parameters as determined by the
administrator (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 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 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 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 1,37,25,712 and 1,55,14,732 shares as at
March 31, 2022 and March 31, 2021, 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, 2022 and March 31, 2021.
The summary of grants during the years ended March 31, 2022 and March 31, 2021 are as follows :
Particulars
Equity-settled RSUs
Key Managerial Personnel (KMP)
Employees other than KMP
Cash-settled RSUs
KMP
Employees other than KMP
Total grants
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2022
2021
2022
2021
1,48,762
3,13,808
2,84,543
4,57,151
27,01,867
12,82,600
13,05,880
22,03,460
28,50,629
15,96,408
15,90,423
26,60,611
–
–
–
–
–
–
49,960
1,15,250
–
28,50,629
–
15,96,408
49,960
16,40,383
1,15,250
27,75,861
227
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 overtime in three equal annual installments upon the
completion of each year of service from the respective grant
date. Accordingly, annual time-based grant of 18,340 RSUs was
made effective February 1, 2022 for fiscal 2022.
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. These RSUs will vest in line with
the employment agreement based on achievement of certain
performance targets. Accordingly, 96,150 performance based
RSU’s were granted effective May 2, 2021.
Under the 2019 Plan
The Board, on April 14, 2021, based on the recommendations
of the Nomination and Remuneration Committee, approved
performance-based grant of RSUs amounting to ₹10 crore for
fiscal 2022 under the 2019 Plan. These RSUs will vest in line with
the employment agreement based on achievement of certain
performance targets. Accordingly, 73,962 performance-based
RSUs were granted effective May 2, 2021.
Other KMPs
Under the 2015 Plan
On April 14, 2021, based on the recommendations of the
nomination and remuneration committee, in accordance with
employment agreement, the Board approved a performance-
based grant of 5,547 RSUs to a KMP under the 2015 Plan. The
grants were made effective May 2, 2021. The performance-
based RSUs will vest over three years based on certain
performance targets.
On January 12, 2022, based on the recommendations of the
nomination and remuneration committee, the Board approved
a time-based grant of 9,876 RSUs to a KMP under the 2015 Plan.
The grants were made effective February 1, 2022. These RSUs will
vest over four years.
On March 31, 2022, based on the recommendations of the
Nomination and Remuneration Committee, the Board approved
a time-based grant of 1,54,630 RSUs to other KMPs under the
2015 Plan. The grants were made effective March 31, 2022. These
RSUs will vest over four years.
Under the 2019 Plan
On March 31, 2022, based on the recommendations of the
Nomination and Remuneration Committee, the Board approved
a performance-based grant of 74,800 RSUs to other KMPs under
the 2019 Plan. The grants were made effective March 31, 2022.
These RSUs will vest over three years based on 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,
2022
2021
65
307
372
13
76
221
297
71
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 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.
The activity in the 2015 and 2019 Plans for equity-settled, share-based payment transactions during the years ended March 31, 2022 and
March 31, 2021 is as follows :
Particulars
2015 Plan: RSUs
Outstanding at the beginning
Granted
Exercised
Modification to equity-settled awards
Forfeited and expired
Outstanding at the end
Exercisable at the end
228
Year ended March 31, 2022
Year ended March 31, 2021
Shares arising out
of options
Weighted average
exercise price (₹)
Shares arising out
of options
Weighted average
exercise price (₹)
80,47,240
15,90,423
25,69,983
–
8,34,705
62,32,975
6,53,775
4.52
5.00
4.07
–
4.63
4.82
4.51
87,80,898
26,60,611
37,83,462
8,71,900
4,82,707
80,47,240
1,51,685
3.96
5.00
3.55
–
4.13
4.52
3.36
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
2015 Plan: ESOPs
Outstanding at the beginning
Granted
Exercised
Modification to equity-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, 2022
Year ended March 31, 2021
Shares arising out
of options
Weighted average
exercise price (₹)
Shares arising out
of options
Weighted average
exercise price (₹)
10,49,456
–
3,48,612
–
–
7,00,844
7,00,844
30,50,573
28,50,629
7,55,557
1,86,707
49,58,938
6,92,638
535
–
529
–
–
557
557
5.00
5.00
5.00
5.00
5.00
5.00
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
539
–
534
–
566
535
536
5.00
5.00
5.00
5.00
5.00
5.00
During the years ended March 31, 2022 and March 31, 2021, the weighted average share price of options exercised under the 2015 Plan on
the date of exercise was ₹ 1,705 and ₹ 1,097, respectively.
During the years ended March 31, 2022 and March 31, 2021, the weighted average share price of options exercised under the 2019 Plan on
the date of exercise was ₹ 1,560 and ` 1,166, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 is as follows :
Range of exercise prices
per share (₹)
2019 plan – Options outstanding
2015 plan – Options outstanding
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average exercise
price (₹)
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average exercise
price (₹)
0 - 5 (RSU)
450 - 600 (ESOP)
49,58,938
–
1.43
–
5.00
–
62,32,975
7,00,844
1.47
0.65
4.82
557
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2021 was as follows :
Range of exercise prices
per share (₹)
2019 plan – Options outstanding
2015 plan – Options outstanding
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average exercise
price (₹)
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average exercise
price (₹)
0 - 5 (RSU)
450 - 600 (ESOP)
30,50,573
–
1.48
–
5.00
–
80,47,240
10,49,456
1.67
1.83
4.52
535
As at March 31, 2022 and March 31, 2021, 2,65,561 and 3,87,088 cash-settled options were outstanding respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹ 13 crore and ₹ 7 crore as at March 31, 2022 and March 31, 2021, 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 has 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.
229
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The fair value of each equity settled award is estimated on the date of grant with 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 2022 –
Equity shares
– RSU
Fiscal 2022 –
ADS-RSU
Fiscal 2021 –
Equity shares
– RSU
Fiscal 2021 –
ADS-RSU
1,791
5.00
20-35
1-4
2-3
4-6
1,548
24.45
0.07
25-36
1-4
2-3
1-3
20.82
1,253
5.00
30-35
1-4
2-3
4-5
1,124
18.46
0.07
30-36
1-4
2-3
0.1-0.3
16.19
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.
2.13 Other financial liabilities
Particulars
Non-current
Others
Compensated absences
Accrued compensation to employees (1)
Accrued expenses (1)(4)
Other payables (1)(6)
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)(6)
Foreign currency forward and options contracts (2)(3)
Total current other financial liabilities
Total other financial liabilities
230
in ₹ crore
As at March 31,
2022
2021
86
8
503
79
676
91
–
163
5
259
36
33
2,999
4,603
12
–
395
1,764
1,449
11
11,269
11,945
2,915
2,944
13
5
340
1,640
460
9
8,359
8,618
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
(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
As at March 31,
2022
10,084
8
3
7
316
–
2021
6,873
14
-
74
174
5
(6) Deferred contract cost in Note 2.10 includes technology assets taken over by the Company from a customer as a part of transformation project which is not
considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115, Revenue from
contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as
at March 31, 2022, the Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability.
2.14 Trade payables
Particulars
Outstanding dues of micro enterprises and small enterprises
Outstanding dues of creditors other than micro enterprises and small enterprises (1)
Total trade payables
(1)
Includes dues to subsidiaries
in ₹ crore
As at March 31,
2022
3
2,666
2,669
613
2021
–
1,562
1,562
400
There is no interest due or outstanding on the dues to Micro, Small and Medium Enterprises (MSME). During the years ended
March 31, 2022 and March 31, 2021, an amount of ₹ 71 crore and ₹ 13 crore was paid beyond the appointed day as defined in the Micro,
Small and Medium Enterprises Development Act 2006.
Trade payables ageing schedule for the years ended as on March 31, 2022 and March 31, 2021 is as follows :
Particulars
Not due
Outstanding for following periods from due date of payment
Less than 1 year
1-2 years
2-3 years More than 3 years
Outstanding dues to MSME
Others
Total trade payables
3
–
2,131
1,318
2,134
1,318
–
–
535
236
535
236
–
–
–
1
–
1
–
–
–
4
–
4
–
–
–
3
–
3
Relationship with struck off companies
in ₹ crore
Total
3
–
2,666
1,562
2,669
1,562
in ₹ crore
Name of struck off company
Compulease Networks Private Limited
Nature of
transactions
Payables
Transactions during the
year March 31, 2022
– (1)
Balance outstanding
as at March 31, 2022
–
Relationship with the
struck off company
Vendor
(1) Less than ₹ 1 crore
Name of struck off company
Nature of
transactions
Transactions during the
year March 31, 2021
Balance outstanding as
at March 31, 2021
Relationship with the
struck off company
Mysodet Private Limited
Compulease Networks Private Limited
Payables
Payables
1
– (1)
–
–
Vendor
Vendor
(1) Less than ₹ 1 crore
231
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
2.15 Other liabilities
Particulars
Non-current
Accrued defined benefit plan
liability (Refer to Note 2.21)
Others
Deferred income
Deferred income –
government grants
Withholding taxes and others
Total non-current other
liabilities
Current
Accrued defined benefit plan
liability
Unearned revenue
Others
in ₹ crore
As at March 31,
2022
2021
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 other provisions
332
274
Particulars
in ₹ crore
As at March 31,
2022
2021
9
19
–
16
14
345
Current
Others
Post-sales client support and others
Total provisions
920
920
661
661
360
649
The movement in the provision for post-sales client
support is as follows :
2
5,179
3
3,145
Particulars
Year ended March 31, 2022
in ₹ crore
Withholding taxes and others
2,190
1,666
Deferred income –
government grants
Total current other liabilities
Total other liabilities
2.16 Provisions
Accounting policy
10
7,381
7,741
2
4,816
5,465
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 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. Provisions for estimated losses, if
any, on incomplete contracts are recorded in the period in which
such losses become probable based on the estimated efforts or
costs to complete the contract. The provision is measured at the
present value of the lower of the expected cost of terminating
232
Balance at the beginning
Provision recognized /
(reversed)
Provision utilized
Exchange difference
Balance at the end
661
343
(152)
28
880
Provision for post-sales client support 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.
2.17 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
equity or 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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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 equity.
Income tax expense in the statement of profit and loss comprises:
Particulars
Year ended March 31,
in ₹ crore
Current taxes
Deferred taxes
Income tax expense
2022
6,960
300
7,260
2021
6,013
416
6,429
Income tax expense for the years ended March 31, 2022 and
March 31, 2021 includes reversal (net of provisions) of ₹ 250
crore and ₹ 298 crore, respectively. These reversals pertains to
prior periods 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 summarized below:
Particulars
Year ended March 31,
in ₹ crore
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
Impact of change in tax rate
Others
Income tax expense
2022
28,495
34.94%
9,957
2021
24,477
34.94%
8,553
(2,849)
(2,468)
958
(250)
(478)
122
(104)
(96)
7,260
688
(298)
(166)
127
–
(7)
6,429
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2022 and March 31, 2021 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 Act
(SEZs), 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.
Deferred income tax for the year ended March 31, 2022 and
March 31, 2021, 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, 2022, Infosys’ US branch net assets amounted to
approximately ₹ 6,332 crore. As at March 31, 2022, the Company
has a deferred tax liability for branch profit tax of ₹ 158 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 ₹ 9,618 crore and ₹ 9,670
crore as at March 31, 2022 and March 31, 2021, 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 ₹ 1,345 crore and ₹ 1,014 crore as at
March 31, 2022 and March 31, 2021, 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, 2022 will
expire between financial years 2028 to 2030.
The details of income tax assets and income tax liabilities as at
March 31, 2022 and March 31, 2021 are as follows :
Particulars
As at March 31,
in ₹ crore
Income tax assets
Current income tax liabilities
Net current income tax assets /
(liabilities) at the end
2022
5,585
2,179
2021
5,287
1,737
3,406
3,550
233
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The gross movement in the current income tax assets / (liabilities) for the years ended March 31, 2022 and March 31, 2021 is as follows :
Particulars
Net current income tax assets / (liabilities) 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 assets / (liabilities) at the end
in ₹ crore
As at March 31,
2022
3,550
6,736
2021
3,471
6,061
(6,960)
(6,013)
63
12
8
–
45
1
–
(15)
(3)
3,406
–
3,550
The movement in gross deferred income tax assets and (liabilities) (before set-off) for the year ended March 31, 2022 is as follows :
Particulars
Property, plant and equipment
Lease liabilities
Trade receivables
Compensated absences
Post-sales client support
Derivative financial instruments
Credits related to branch profits
Intangibles through business transfer
Branch profit tax
SEZ Re-investment Reserve
Others
Total deferred income tax assets / (liabilities)
Carrying
value as of
April 1, 2021
Changes
through
profit and
loss
Additions
through
business
transfer
Changes
through OCI
Translation
difference
315
149
194
437
115
(54)
355
(10)
(500)
(613)
56
444
(126)
14
(25)
29
3
27
308
6
(316)
(217)
(3)
(300)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
–
–
–
–
(13)
(10)
–
–
–
–
–
–
13
–
(18)
–
–
(5)
in ₹ crore
Carrying
value as of
March 31,
2022
189
163
169
466
118
(24)
676
(4)
(834)
(830)
40
129
The movement in gross deferred income tax assets and (liabilities) (before set-off) for the year ended March 31, 2021 was as follows :
Particulars
Property, plant and equipment
Lease liabilities
Trade receivables
Compensated absences
Post-sales client support
Derivative financial instruments
Credits related to branch profits
Intangibles through business transfer
234
Carrying
value as of
April 1, 2020
Changes
through
profit and
loss
Additions
through
business
transfer
Changes
through OCI
Translation
difference
203
120
182
380
101
155
377
–
111
29
12
56
14
(201)
(11)
5
–
–
–
1
–
–
–
(14)
–
–
–
–
–
(8)
–
–
1
–
–
–
–
–
(11)
(1)
in ₹ crore
Carrying
value as of
March 31,
2021
315
149
194
437
115
(54)
355
(10)
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Branch profit tax
SEZ Re-investment Reserve
Others
Total deferred income tax assets / (liabilities)
Carrying
value as of
April 1, 2020
Changes
through
profit and
loss
Additions
through
business
transfer
Changes
through OCI
Translation
difference
(555)
(82)
(8)
873
38
(531)
62
(416)
–
–
–
(13)
–
–
2
(6)
17
–
–
6
Carrying
value as of
March 31,
2021
(500)
(613)
56
444
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,
2022
970
(841)
2021
955
(511)
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, 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.
The Company’s Advanced Pricing Arrangement (APA) with the
Internal Revenue Service (IRS) for US branch income tax expired
in March 2021. The Company has applied for renewal of APA and
currently the US taxable income is based on the Company’s best
estimate determined based on the expected value method.
2.18 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.
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
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
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
235
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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.
Certain cloud and infrastructure services contracts include
multiple elements which may be subject to other specific
accounting guidance, such as leasing guidance. These contracts
are accounted in accordance with such specific accounting
guidance. In such arrangements where the Company is
able to determine that hardware and services are distinct
performance obligations, it allocates the consideration to these
performance obligations on a relative standalone selling price
basis. In the absence of standalone selling price, the Company
uses the expected cost-plus margin approach in estimating
the standalone selling price. When such arrangements are
considered as a single performance obligation, revenue
is recognized over the period and measure of progress is
determined based on promise in the contract.
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
236
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 good 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.
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, nonrecurring 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.
Capitalized contract costs relating to upfront payments to
customers are amortized to revenue and other capitalized costs
are amortized to expenses over the respective contract life
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates. Capitalized costs
are monitored regularly for impairment. Impairment losses are
recorded when present value of projected remaining operating
cash flows is not sufficient to recover the carrying amount of
the capitalized costs.
The Company presents revenues net of indirect taxes in its
Statement of Profit and Loss.
Revenue from operations for the year ended March 31, 2022 and
March 31, 2021 is as follows :
Particulars
Year ended March 31,
in ₹ crore
Revenue from software services
Revenue from products and
platforms
Total revenue from operations
2022
103,615
325
103,940
2021
85,669
243
85,912
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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
pandemic is not significant-based on these estimates. Due to the
nature of the COVID-19 pandemic, the company will continue
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, 2022
and March 31, 2021, 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
Digital services
in ₹ crore
Year ended March 31,
2022
2021
43,410
60,530
1,03,940
43,810
42,102
85,912
Digital services comprise of 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®, 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, 2022 and March 31, 2021
is approximately 53%.
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 in excess of earnings are classified as “unearned revenue”.
Trade receivables and unbilled revenues are presented net of
impairment in the Balance Sheet.
During the years ended March 31, 2022 and March 31, 2021, the
company recognized revenue of ₹ 2,831 crore and ₹ 1,861 crore
arising from opening unearned revenue as of April 1, 2021 and
April 1, 2020, respectively. During the years ended March 31, 2022
and March 31, 2021, ₹ 3,711 crore and ₹ 3,401 crore of unbilled
revenue pertaining to other fixed-price and fixed-time frame
contracts as of April 1, 2021 and April 1, 2020, 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 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, 2022, other
than those meeting the exclusion criteria mentioned above, is
₹ 65,748 crore. Out of this, the Company expects to recognize
revenue of around 55% 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, 2021 is ₹ 62,114 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.
237
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.19 Other income, net
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.
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.
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 shall
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, 2022 and
March 31, 2021 is as follows :
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 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 (1)
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,
2022
2021
151
668
143
951
580
372
1
80
-
8
127
1,218
–
70
321
–
189
558
105
(279)
185
3,224
243
2,467
(1) The Company received dividend from its wholly-owned subsidiaries –
Infosys BPM Limited and Brilliant Basics Holdings Limited
2.20 Expenses
Particulars
in ₹ crore
Year ended March 31,
2022
2021
Employee benefit expenses
Salaries including bonus
49,575
43,605
Contribution to provident and other
funds
Share-based payments to employees
(Refer to Note 2.12)
Staff welfare
1,417
1,146
372
300
297
131
51,664
45,179
238
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
Cost of software packages and others
Year ended March 31,
2022
2021
2.21 Employee benefits
Accounting policy
2.21.1 Gratuity and Pensions
For own use
1,062
942
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 2.25)
Towards CSR*
Proposed transfer of CSR assets**
Others
1,923
2,985
1,116
2,058
93
444
12
205
824
29
135
77
11
99
288
24
192
1,050
22
108
47
6
117
152
5
–
–
5
–
1
397
–
141
412
283
54
2,490
2,743
* Figures for the year ended March 31, 2021 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
** Consequent to the Companies (Corporate Social Responsibility Policy)
Amendment Rules, 2021 (“the Rules”), the Company is required to transfer
its CSR capital assets created prior to January 2021. Towards this the
Company had incorporated a controlled subsidiary ‘Infosys Green Forum’
under Section 8 of the Companies Act, 2013 .The carrying amount of the
capital asset amounting to ₹283 crore had been impaired and included as
CSR expense in the Standalone financial statements during the year ended
March 31, 2021 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. During the year ended March
31, 2022, the transfer has been completed on obtaining the required
approvals from regulatory authorities.
The Company provides for gratuity, a defined benefit retirement
plan ("the Gratuity Plan") covering eligible Indian employees
of Infosys. 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 Company. The Company contributes Gratuity liabilities
to the Infosys Limited Employees’ Gratuity Fund Trust (the
Trust). 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.
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 external
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 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 Statement of Profit and Loss.
2.21.2 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.
2.21.3 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.
239
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
2.21.4 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.
The Code on Social Security,2020 ("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 following tables set out the funded status majorly of
the Indian gratuity plans and the amounts recognized in
the Company's financial statements as at March 31, 2022
and March 31, 2021 :
Particulars
in ₹ crore
As at March 31,
2022
2021
Change in benefit obligations
Benefit obligations at the beginning
1,382
The amount for the years ended March 31, 2022 and
March 31, 2021 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
Net gratuity cost
in ₹ crore
Year ended March 31,
2022
193
(7)
186
2021
181
(8)
173
The amount for the years ended March 31, 2022 and March
31, 2021 recognized in the statement of other comprehensive
income are as follows :
Particulars
Remeasurements of the net defined
benefit liability / (asset)
in ₹ crore
Year ended March 31,
2022
2021
Actuarial (gains) / losses
69
14
(Return) / loss on plan assets excluding
amounts included in the net interest on
the net defined benefit liability / (asset)
(21)
48
(10)
4
in ₹ crore
Year ended March 31,
2022
–
(33)
102
69
2021
–
8
6
14
193
77
3
69
(257)
1,467
Particulars
(Gain) / loss from change in
demographic assumptions
(Gain) / loss from change in financial
assumptions
(Gain) / loss from change in experience
assumptions
1,195
181
72
3
14
(83)
1,382
The weighted-average assumptions used to determine
benefit obligations as at March 31, 2022 and
March 31, 2021 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,
2022
6.5%
2021
6.1%
6.0%
6.0%
5.9 years
5.9 years
1,391
1,338
84
3
80
–
21
235
(257)
1,477
10
10
45
(82)
1,391
9
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
240
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
The weighted-average assumptions used to determine net
periodic benefit cost for the year ended March 31, 2022 and
March 31, 2021 are as follows :
Maturity profile of defined benefit obligation :
in %
Within 1 year
Particulars
Year ended March 31,
Discount rate
Weighted average rate of increase in
compensation levels
2022
6.1
6.0
2021
6.2
6.0
1-2 year
2-3 year
3-4 year
4-5 year
5-10 years
in ₹ crore
204
214
231
242
284
1,559
The Company operates defined benefit pension plan in
certain overseas jurisdictions, in accordance with local laws.
As at March 31, 2022 and March 31, 2021, the defined benefit
obligation (DBO) is ₹ 610 crore and ₹ 541 crore, fair value of plan
assets is ₹ 534 crore and ₹ 434 crore, resulting in recognition of a
net DBO of ₹ 76 crore and ₹ 107 crore, respectively.
b. Superannuation
The Company contributed ₹ 342 crore and ₹ 242 crore to the
Superannuation trust during the year ended March 31, 2022 and
March 31, 2021, 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.
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 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 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 level
in ₹ crore
As at March 31,
2022
2021
81
73
78
70
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, 2022 and March 31, 2021, the plan assets have been
primarily invested in insurer managed funds.
Actual return on assets for the years ended March 31, 2022 and
March 31, 2021 were ₹ 105 crore and ₹ 90 crore, respectively.
The Company expects to contribute ₹ 200 crore to the gratuity
trusts during the fiscal 2023.
241
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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, 2022 and March 31,
2021 is as follows :
The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows :
Particulars
in ₹ crore
As at March 31,
Government of India (GOI) bond yield (1)
2022
2021
Expected rate of return on plan assets
As at March 31,
2022
6.50%
7.70%
2021
6.10%
8.00%
Remaining term to maturity of portfolio
6 years
6 years
7,366
Expected guaranteed interest rate
8.10%
8.50%
Particulars
Change in benefit obligations
Benefit obligations at the beginning
Service cost
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
8,287
656
1,153
516
118
(1,426)
9,304
423
816
606
(26)
(898)
8,287
8,140
507
7,117
596
18
1,819
(1,426)
9,058
(246)
125
1,200
(898)
8,140
(147)
Amount for the year ended March 31, 2022 and March 31, 2021
recognized in the statement of other comprehensive income:
Particulars
Remeasurements of the net defined
benefit liability / (asset)
in ₹ crore
Year ended March 31,
2022
2021
Actuarial (gains) / losses
118
(26)
(Return) / loss on plan assets
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)
(18)
100
(125)
(151)
242
(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 breakup of the plan assets into various categories as at March
31, 2022 and March 31, 2021 is as follows :
Particulars
As at March 31,
Central and State government bonds
Public sector undertakings and Private
sector bonds
Others
2022
57%
37%
6%
2021
54%
40%
6%
The asset allocation for plan assets is determined based on
investment criteria prescribed under the relevant regulations.
As at March 31, 2022 the defined benefit obligation would
be affected by approximately ₹ 88 crore and ₹ 114 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Company contributed ₹ 768 crore and ₹ 568 crore to the
provident fund during the year ended March 31, 2022 and
March 31, 2021, respectively. The same has been recognized in
the net profit in the 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.
Employee benefits cost include:
Particulars
Year ended March 31,
in ₹ crore
Salaries and bonus(1)
Defined contribution plans
Defined benefit plans
2022
50,338
342
984
51,664
2021
44,078
242
859
45,179
(1)
Includes employee stock compensation expense of ₹372 crore and ₹297
crore for the year ended March 31, 2022 and March 31, 2021, respectively
(Refer to Note 2.12).
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
2.22 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.
effected prior to the approval of the financial statements by
the Board of Directors.
The following is a reconciliation of the equity shares used in the
computation of basic and diluted earnings per equity share:
Particulars
Year ended March 31,
2022
2021
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
4,22,43,39,562
4,25,94,38,950
52,06,766
36,53,564
4,22,95,46,328 4,26,30,92,514
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
For the years ended March 31, 2022 and March 31, 2021, there
were no options to purchase equity shares which had an
anti-dilutive effect.
2.23 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.
Particulars
Contingent liabilities
Claims against the Company, not acknowledged as debts(1)
[Amount paid to statutory authorities ₹5,617 crore (₹5,827 crore)]
Commitments
in ₹ crore
As at March 31,
2022
2021
4,245
3,753
Estimated amount of contracts remaining to be executed on capital contracts and not provided for
1,092
609
(net of advances and deposits)(2)
Other Commitments*
* Uncalled capital pertaining to investments
11
10
(1) As at March 31, 2022, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹ 3,898 crore. 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 tax claims amounted to ₹ 5,607 crore and ₹ 5,817 crore as at March 31, 2022 and March 31, 2021, respectively.
(2) Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipment’s.
243
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 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.
2.24 Related party transactions
List of related parties
Name of subsidiaries
Infosys Technologies (China) Co. Limited (Infosys China) (1)
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) (1)
Infosys Technologies (Sweden) AB (Infosys Sweden) (1)
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai) (1)
Infosys Nova Holdings LLC. (Infosys Nova) (1)
EdgeVerve Systems Limited (EdgeVerve) (1)
Infosys Austria GmbH (1)
Skava Systems Private Limited (Skava Systems) (1)(41)
Kallidus Inc. (Kallidus) (42)
Infosys Chile SpA (1)
Infosys Arabia Limited (2)
Infosys Consulting Ltda. (1)
Infosys CIS LLC (15)
Infosys Luxembourg S.a.r.l (1)
Infosys Americas Inc., (Infosys Americas) (1)
Infosys Public Services, Inc. USA (Infosys Public Services) (1)
Infosys Canada Public Services Inc (20)(53)
Infosys BPM Limited (1)(61)
Infosys (Czech Republic) Limited s.r.o. (3)
Infosys Poland Sp z.o.o (3)
Infosys McCamish Systems LLC (3)
Portland Group Pty Ltd (3)
Infosys BPO Americas LLC. (3)
Infosys Consulting Holding AG (Infosys Lodestone) (1)
Infosys Management Consulting Pty Limited (4)
Infosys Consulting AG (4)
Infosys Consulting GmbH (4)
Infosys Consulting S.R.L. (1)
Infosys Consulting SAS (4)
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.) (4)(52)
Czech Republic
Infosys Consulting (Shanghai) Co., Ltd. (4)(48)
Infy Consulting Company Ltd (4)
Infy Consulting B.V. (4)
Infosys Consulting Sp. z.o.o (29)
Lodestone Management Consultants Portugal, Unipessoal, Lda. (4)(34)
Infosys Consulting S.R.L. (4)
China
UK
The Netherlands
Poland
Portugal
Argentina
244
Country
Holdings as at March 31,
2022
2021
in %
China
Mexico
Sweden
China
US
India
Austria
India
US
Chile
Saudi Arabia
Brazil
Russia
Luxembourg
US
US
Canada
India
Czech Republic
Poland
US
Australia
US
Switzerland
Australia
Switzerland
Germany
Romania
France
100
100
100
100
100
100
100
100
–
100
70
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
–
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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Name of subsidiaries
Country
Holdings as at March 31,
Infosys Consulting (Belgium) NV (5)
Panaya Inc. (Panaya) (1)
Panaya Ltd. (6)
Panaya GmbH (6)
Brilliant Basics Holdings Limited (Brilliant Basics) (1)(41)
Brilliant Basics Limited (7)(41)
Brilliant Basics (MENA) DMCC (7)(21)
Infosys Consulting Pte. Ltd. (Infosys Singapore) (1)
Infosys Middle East FZ-LLC (8)
Fluido Oy (8)
Fluido Sweden AB (Extero) (11)
Fluido Norway A/S (11)
Fluido Denmark A/S (11)
Fluido Slovakia s.r.o(11)
Fluido Newco AB(11)(36)
Infosys Compaz Pte. Ltd(9)
Infosys South Africa (Pty) Ltd(8)
WongDoody Holding Company Inc. (WongDoody)(1)(54)
WDW Communications, Inc(10)(55)
WongDoody, Inc(10)(56)
HIPUS Co., Ltd(9)
Stater N.V.(9)
Stater Nederland B.V.(12)
Stater Duitsland B.V.(12)(38)
Stater XXL B.V.(12)
HypoCasso B.V.(12)
Stater Participations B.V.(12)
Stater Deutschland Verwaltungs-GmbH(13)(37)
Stater Deutschland GmbH & Co. KG(13)(37)
Stater Belgium N.V./S.A.(14)(39)
Stater Gmbh(12)(46)
Outbox systems Inc. dba Simplus (US)(16)
Simplus North America Inc.(17)(45)
Simplus ANZ Pty Ltd.(17)
Simplus Australia Pty Ltd(18)
Sqware Peg Digital Pty Ltd(19)(49)
Simplus Philippines, Inc.(17)
Simplus Europe, Ltd.(17)(47)
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)(22)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd)(23)
Infosys Limited Bulgaria EOOD(1)(24)
Kaleidoscope Animations, Inc.(27)
Kaleidoscope Prototyping LLC(28)
Belgium
US
Israel
Germany
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
Germany
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Bulgaria
US
US
2022
99.90
2021
99.90
100
100
100
100
100
–
100
100
100
100
100
100
100
–
60
100
–
–
100
81
75
75
–
75
75
75
–
–
75
75
100
–
100
100
–
100
–
100
100
100
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
–
100
100
100
100
100
100
100
100
100
100
100
100
245
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Name of subsidiaries
GuideVision s.r.o.(25)
GuideVision Deutschland GmbH(26)
GuideVision Suomi Oy(26)
GuideVision Magyarország Kft(26)
GuideVision Polska SP.Z.O.O(26)
GuideVision UK Ltd(26)
Blue Acorn iCi Inc (formerly Beringer Commerce Inc)(30)
Beringer Capital Digital Group Inc(30)(59)
Mediotype LLC(31)(59)
Beringer Commerce Holdings LLC(31)(59)
SureSource LLC(32)(57)
Blue Acorn LLC(32)(57)
Simply Commerce LLC(32)(57)
iCiDIGITAL LLC(33)(58)
Infosys BPM UK Limited(3)(35)
Infosys Turkey Bilgi Teknolojikeri Limited Sirketi(1)(40)
Infosys Germany Holding Gmbh(1)(43)
Infosys Automotive and Mobility GmbH & Co. KG(1)(44)
Infosys Green Forum(1)(50)
Country
Holdings as at March 31,
2022
2021
Czech Republic
Germany
Finland
Hungary
Poland
UK
US
US
US
US
US
US
US
US
UK
Turkey
Germany
Germany
India
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
–
–
100
–
–
–
–
–
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.)(51)
Malaysia
Infosys Business Solutions LLC(1)(60)
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))(62)
Qatar
Germany
(1) Wholly-owned subsidiary of Infosys Limited
(23) Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)
(2) Majority-owned and controlled subsidiary of Infosys Limited
(24) Incorporated effective September 11, 2020.
(3) Wholly-owned subsidiary of Infosys BPM Limited
(25) On October 1, 2020, Infy Consulting Company Limited acquired 100% of
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
(5) Majority-owned and controlled subsidiary of
Infosys Consulting Holding AG
(6) Wholly-owned subsidiary of Panaya Inc.
(7) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(8) Wholly-owned subsidiary of Infosys Consulting Pte. Ltd.
(9) Majority-owned and controlled subsidiary of Infosys Consulting Pte. Ltd.
(10) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody)
(11) Wholly-owned subsidiary of Fluido Oy
(12) Wholly-owned subsidiary of Stater N.V
(13) Wholly-owned subsidiary of Stater Duitsland B.V.
(14) Majority-owned and controlled subsidiary of Stater Participations B.V.
(15) Liquidated effective January 28, 2021.
(16) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(17) Wholly-owned subsidiary of Outbox Systems Inc.
(18) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(19) Wholly-owned subsidiary of Simplus Australia Pty Ltd
(20) Wholly-owned subsidiary of Infosys Public Services, Inc.
(21) Liquidated effective July 17, 2020
voting interests in GuideVision s.r.o
(26) Wholly-owned subsidiary of GuideVision s.r.o.
(27) On October 9, 2020, Infosys Nova Holdings LLC, acquired 100% voting
interest in Kaleidoscope Animations, Inc.
(28) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(29) Merged with Infosys Poland Sp. z.o.o, effective October 21, 2020
(30) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned
subsidiary of Infosys Limited, acquired 100% voting interest in Blue Acorn
iCi Inc (formerly Beringer Commerce Inc) and Beringer Capital Digital Group
Inc
(31) Wholly-owned subsidiary of Blue Acorn iCi Inc
(32) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(33) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(34) Liquidated effective November 19,2020
(35) Incorporated, effective December 9, 2020
(36) Merged into Fluido Sweden AB (Extero), effective December 18, 2020
(37) Merged into Stater Duitsland B.V., effective December 18, 2020
(38) Merged with Stater N.V., effective December 23, 2020
(39) On December 29, 2020, Stater Participation B.V acquired non-controlling
interest of 28.01% of the voting interests in Stater Belgium NV/SA
(40) Incorporated on December 30, 2020.
(22) On June 1, 2020, Fluido Oy, acquired 100% of the voting interests in
(41) Under liquidation
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)
246
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation (42) Liquidated effective March 9,2021
(43) Incorporated on March 23, 2021
(44) On March 28, 2021 Infosys Limited and Infosys Germany Holding Gmbh
registered Infosys Automotive and Mobility GmbH & Co. KG, a partnership
firm.
(45) Liquidated effective April 27,2021
(46) Incorporated on August 4, 2021
(47) Liquidated effective July 20, 2021
(48) Liquidated effective September 1, 2021
(49) Liquidated effective September 2, 2021
(50) Incorporated on August 31, 2021
(51) On December 14, 2021, Infosys Consulting Pte. Ltd., a wholly-owned
subsidiary of Infosys Limited acquired 100% of voting interests in Infosys
(Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia)
Sdn. Bhd.)
(52) Liquidated effective December 16, 2021
(53) Liquidated effective November 23, 2021
(54) Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
Inc, effective December 31, 2021
(55) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021
(56) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(57) Merged with Beringer Commerce Holdings LLC, effective January 1, 2022
(58) Merged with Beringer Capital Digital Group Inc, effective January 1, 2022
(59) Merged with Blue Acorn iCi Inc, effective January 1, 2022
(60) Incorporated on February 20, 2022
(61) On March 17, 2022, Infosys Limited acquired non-controlling interest of
0.01% of the voting interests in Infosys BPM Limited.
(62) On March 22, 2022, Infosys Consulting Pte. Ltd., a wholly-owned
subsidiary of Infosys Limited acquired 100% of voting interests in Infosys
Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))
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
Infosys Foundation (1)
(1) Effective January 1, 2022
Country
Nature of relationship
India
India
India
India
India
India
India
India
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
Trust jointly controlled by KMPs
Refer to Note 2.21 for information on transactions with post-employment benefit plans mentioned above.
Mohit Joshi
President
Krishnamurthy Shankar
Group Head - Human Resources
Executive Officers
Nilanjan Roy
Chief Financial Officer
Ravi Kumar S.
President
Inderpreet Sawhney
Group General Counsel and
Chief Compliance Officer
Company Secretary
A. G. S. Manikantha
List of key management personnel
Whole-time directors
Salil Parekh , Chief Executive Officer and Managing Director
•
• U.B. Pravin Rao (retired as a Chief Operating Officer and
Whole-time director effective December 12, 2021)
Non-whole-time directors
• Nandan M. Nilekani
• Michael Gibbs
• Kiran Mazumdar-Shaw
• D. Sundaram
• D. N. Prahlad (resigned as a member of the Board effective
April 20, 2020)
• 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)
247
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The details of amounts due to or due from related parties as at
March 31, 2022 and March 31, 2021 are as follows :
Particulars
As at March 31,
2022
2021
in ₹ crore
Infosys Consulting Ltda.
As at March 31,
Infy Consulting B.V.
2022
2021
Brilliant Basics Limited
Particulars
Investment in debentures
EdgeVerve(1)
Trade receivables
Brilliant Basics Limited
Infosys China
Infosys Mexico
Infosys BPM Limited
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 Chile SPA
Infosys Middle East FZ-LLC
Loans
Infosys China (2)
Infosys Shanghai(2)
Prepaid expense and other assets
Panaya Ltd.
GuideVision, s.r.o.
Other financial assets
Infosys BPM Limited
Infosys Consulting GmbH
Infosys China
Infosys Shanghai
Infy Consulting Company Ltd.
Infosys Management Consulting Pty
Limited
Infosys Consulting AG
248
Infosys Automotive and Mobility
156
–
–
–
6
1
7
12
3
95
1
16
1
–
76
1
8
–
–
28
2
11
268
–
–
–
203
1
204
7
3
12
3
7
1
2
Infosy Fluido Oy
Panaya Ltd
McCamish Systems LLC
Infosys Consulting Pte Limited
Infosys Poland sp. z o o
Fluido Denmark A/S
Infosys Luxembourg S.à.r.l
Infosys Consulting S.R.L.
Infosys Green Forum
536
536
1
11
2
9
7
3
54
Infosys Consulting (Belgium) NV
1
7
2
1
46
1
12
1
3
24
–
18
WongDoody, Inc.
Infosys Public Services
Simplus Philippines, Inc.
EdgeVerve
Unbilled revenues
EdgeVerve
Infosys Consulting Ltda
Beringer Commerce Inc.
Portland Group Pty Ltd
Infosys Automotive and Mobility
Infosys Austria GmbH
203
Infosys (Czech Republic) Limited s.r.o.
Infy Consulting Company Ltd
Infosys Consulting S.R.L.
Infosys Technologies (Sweden) AB.
Infosys China
Infosys Turkey
Infosys Consulting Pte Limited
McCamish Systems LLC
Infosys Mexico
Stater Nederland B.V.
Trade payables
Infosys China
Infosys BPM Limited
Infosys (Czech Republic) Limited s.r.o.
Infosys Mexico
Infosys Sweden
21
75
96
236
1
237
145
2
9
2
5
1
1
1
2
–
–
1
6
1
2
1
1
1
2
3
3
4
1
–
220
64
4
1
2
201
2
2
4
1
1
9
2
5
115
2
4
419
28
152
18
–
69
1
2
4
1
–
4
–
–
1
1
–
–
–
–
–
–
–
3
182
77
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5
82
6
121
12
8
39
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Particulars
As at March 31,
Particulars
Infosys Shanghai
Infosys Management Consulting Pty
Limited
Infosys Consulting Pte Ltd.
Infy Consulting Company Ltd.
Infosys Consulting Ltda
Panaya Ltd.
Infosys Public Services
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.
Infosys Fluido Oy
McCamish Systems LLC
Fluido Sweden AB
EdgeVerve
WongDoody, Inc.
Fluido Denmark
Simplus UK Ltd
Infosys Automotive and Mobility
Infosys Limited Bulgaria
Infosys Technologies, Mexico.
Infosys Consulting Ltda
WDW Communications, Inc.
Other financial liabilities
Infosys BPM Limited
Brilliant Basics Limited
Infosys Mexico
Infosys China
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.
Kaleidoscope Animations INC
WongDoody ,Inc.
Infosys Public Services
GuideVision Magyarország Kft.
Infosys Austria GmbH
2022
23
14
7
118
–
13
1
1
8
3
4
14
17
12
–
14
6
2
7
3
57
1
16
5
–
613
33
–
1
4
2
–
17
5
5
3
1
3
53
5
1
1
2021
8
11
3
46
6
37
3
1
1
1
12
10
20
20
2
10
1
6
–
–
–
–
–
–
16
400
127
23
1
3
1
1
9
2
2
1
1
–
–
–
–
–
Infosys Consulting Pte Limited
Infosys Consulting GmbH
Infosys Automotive and Mobility
McCamish Systems LLC
Infosys Green Forum
Infosys Consulting (Belgium)
Beringer Commerce Inc.
GuideVision Deutschland GmbH
Infosys Poland sp. z o o
iCiDIGITAL LLC
Accrued expenses
Infosys BPM Limited
As at March 31,
2022
2021
1
1
105
16
6
3
48
1
1
–
316
7
7
–
–
–
–
–
–
–
–
–
3
174
74
74
(1) At an interest rate of 7.17% per annum.
(2)
Interest at the rate of 6% per annum repayable on demand
Particulars
Loans and advances in the nature of
loans given to subsidiaries:
Infosys China
Infosys Shanghai
Infosys Consulting S.R.L. Romania
Infosys Consulting Pte Ltd
in ₹ crore
Maximum amount
outstanding during the
Year ended March 31,
2022
2021
21
76
–
–
471
79
2
1,214
249
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation The details of the related parties transactions entered into
by the Company for the years ended March 31, 2022 and
March 31, 2021 are as follows :
Particulars
Year ended March 31,
in ₹ crore
Year ended March 31,
2022
2021
Infosys Public Services
Panaya Ltd.
Infosys Poland Sp Z.o.o
Infosys Consulting S.R.L. Romania
2022
11
140
124
234
20
60
–
16
30
17
51
42
52
15
3
28
6
2
28
11
Infosys Compaz Pte. Ltd
Infosys Consulting Ltda.
Kallidus
Kaleidoscope Animations
Brilliant Basics Limited
Infosys Chile SpA
Infosys Middle East FZ-LLC
Fluido Oy
Fluido Sweden AB (Extero)
Fluido Denmark
McCamish Systems LLC
GuideVision, s.r.o.
GuideVision Polska SP.Z.O.O
HIPUS
Simplus Australia Pty Ltd
Simplus Philippines, Inc.
Outbox System,Inc. dba Simplus
177
Simplus UK Ltd
WDW Communications, Inc.
iCiDIGITAL LLC
Blue Acorn LLC
Beringer Commerce Inc
Mediotype LLC
Infosys Automotive and Mobility
GuideVision Deutschland GmbH
GuideVision Suomi Oy
GuideVision Magyarország Kft
Infosys Austria GmbH
Infosys Limited Bulgaria
WongDoody, Inc.
EdgeVerve
Purchase of shared services including
facilities and personnel
Brilliant Basics Limited
Infosys BPM Limited
WongDoody, Inc.
Infosys Green Forum
Infosys Public Services
17
24
52
19
47
2
57
1
3
5
1
5
265
15
5,717
1
3
24
4
–
2021
32
131
66
182
3
41
22
–
53
15
61
30
31
–
7
2
1
1
1
1
27
–
108
3
–
–
–
–
–
–
–
–
–
9
–
3,691
3
3
6
–
3
–
–
–
–
–
–
1
15
–
110
2
–
128
(536)
(536)
(21)
(76)
–
–
(97)
125
187
1,251
73
21
165
2,001
49
116
149
154
21
1,302
13
2
2
–
–
36
–
–
(151)
1,379
(623)
(623)
(74)
76
(277)
(9)
(284)
63
129
965
25
33
122
1,321
47
87
72
Particulars
Capital transactions:
Financing transactions
Equity
Infosys Consulting Brazil
WongDoody Holding Company
Inc
Infosys Nova Holdings LLC
Infosys Luxembourg S.ã r.l.
Infosys Limited Bulgaria
Infosys Germany Holdings Gmbh
Infosys Green Forum
Infosys Automotive and Mobility
Infosys China
Infosys Shanghai
Infosys BPM Limited
Kallidus
Debentures (net of repayment)
EdgeVerve
Loans (net of repayment)
Infosys China
Infosys Shanghai
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 Limited
Infosys Sweden
Infosys Shanghai
Infosys Mexico
250
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
Particulars
Year ended March 31,
Particulars
2022
2021
Panaya Ltd.
Infosys Mexico
WDW Communications, Inc.
Interest income
Infosys China
Infosys Shanghai
Infosys Consulting Pte Ltd.
EdgeVerve
Guarantee income
Infosys Consulting Pte Ltd.
Dividend income
Brilliant Basics Holdings Ltd
Infosys BPM Limited
Sale of services
Infosys China
Infosys Mexico
Infosys Austria GmbH
Infy Consulting Company Limited
Infosys BPO Americas
Infosys BPM Limited
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.
Panaya Ltd.
Infosys Chile
Infosys Turkey
Blue Acorn LLC
Infosys (Czech Republic) Ltd
Infosys Automotive and Mobility
Beringer Commerce INC.
Mediotype LLC
–
7
23
62
–
1
–
2
3
1
1
68
1,150
1,218
33
21
2
28
18
95
1
89
24
493
61
4
596
615
2
81
6
–
2
2
1
2
201
1
1
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
–
–
–
–
–
–
–
Portland Group Pty Ltd
Infosys Consulting S.R.L.
iCiDIGITAL LLC
Infosys Consulting Pte. Limited
Stater Nederland B.V.
Sale of shared services including
facilities and personnel
EdgeVerve
Panaya Ltd.
Infosys Luxembourg S.à.r.l
Infosys Green Forum
Infosys BPM Limited
Brilliant Basics Limited
Year ended March 31,
2022
2021
3
1
1
5
–
–
–
–
47
2,436
54
1,947
100
3
3
1
24
–
131
29
3
–
–
24
1
57
The Company’s related party transactions during the year ended
March 31, 2022 and March 31, 2021 and outstanding balances as
at March 31, 2022 and March 31, 2021 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 2.25. During the year ended March 31, 2022, the
Company purchased fixed assets amounting to ` 24 crore from
Infosys Green Forum.
251
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation
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,
2022
134
11
145
2021
144
6
150
(1) Total employee stock compensation expense for the year ended March 31, 2022 and March 31, 2021, includes a charge of ₹ 65 crore and ₹ 76 crore respectively,
towards key managerial personnel respectively. (Refer to Note 2.12)
(2) Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.
2.25 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 utilized through the year on these activities which are specified in Schedule VII of the
Companies Act, 2013:
Particulars
As at March 31,
i) Amount required to be spent by the company
during the year
ii) Amount of expenditure incurred
iii) Shortfall at the end of the year*
iv) Total of previous years shortfall
v) Reason for shortfall
vi) Nature of CSR activities
vii) Details of related party transactions,
e.g.,contribution to a trust controlled by the company
in relation to CSR expenditure as per relevant
Accounting Standard(1)
viii) Where a provision is made with respect to a
liability incurred by entering into a contractual
obligation, the movements in the provision
2022
397
345
52
22
in ₹ crore
2021
372
325
50
–
Pertains to ongoing projects
Pertains to ongoing projects
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
12
NA
20
NA
(1) Represents contribution to Infosys Science foundation a controlled trust to support the Infosys Prize program towards contemporary research in the various
branches of science as a part of ongoing project.
* 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
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the Company was required to transfer
its CSR capital assets created prior to January 2021. Towards this the Company had incorporated a controlled subsidiary , ‘Infosys Green
Forum’ under Section 8 of the Companies Act, 2013. During the year ended March 31, 2022 the Company has completed the transfer of
assets upon obtaining the required approvals from regulatory authorities, as applicable.
The carrying amount of the capital asset amounting to ` 283 crore has been impaired and included as CSR expense in the Standalone
financial statements for the year ending March 31, 2021 as 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.
252
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.26 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.
2.27 Ratios
The ratios for the years ended March 31, 2022 and March 31, 2021 are as follows :
Particulars
Numerator
Denominator
As at March 31,
shareholder’s equity
30.2%
27.0%
Current ratio
Current assets
Current liabilities
Debt – Equity ratio
Debt service
coverage ratio
Return on Equity
(ROE)
Trade receivables
turnover ratio
Trade payables
turnover ratio
Net capital turnover
ratio
Total debt (represents
lease liabilities) (1)
Earnings available for
debt service(2)
Shareholder’s equity
Debt service(3)
Net profits after taxes Average
Revenue
Average trade
receivable
Purchases of services
and other expenses
Average trade
payables
Revenue
Working capital
Net profit ratio
Net profit
Revenue
Return on Capital
Employed (ROCE)
Earning before
interest and taxes
Capital employed(4)
Return on
Investment(ROI)
Unquoted
Quoted
Income generated
from investments
Time weighted
average investments
Income generated
from investments
Time weighted
average investments
2022
2.1
0.1
38.5
2021
2.7
0.1
38.8
5.9
11.3
3.8
20.4%
38.8%
8.7%
5.9%
5.4
9.9
2.8
21.0%
32.5%
7.9%
6.2%
(1) Debt represents only lease liabilities
(2) Net profit after taxes + Non-cash operating expenses + Interest + Other adjustments like loss on sale of fixed assets etc.
(3) Lease payments for the current year
(4) Tangible net worth + Deferred tax liabilities + Lease liabilities
* Revenue growth along with higher efficiency on working capital improvement has resulted in an improvement in the ratio.
Variance
(in %)
(23.4)
0.1
(0.8)
3.2
9.0
13.3
35.1 *
(0.6)
6.3
0.9
(0.3)
253
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation 2.28 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
Fair value changes on derivatives designated as cash flow hedge, net
Fair value changes on investments, net
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
Note
Year ended March 31,
in ₹ crore
2.18
2.19
2.17
2.17
2.5 & 2.17
2.11 & 2.17
2.5
2022
1,03,940
69,629
34,311
4,125
4,787
8,912
2021
85,912
55,541
30,371
3,676
4,559
8,235
25,399
22,136
128
3,224
126
2,467
28,495
24,477
6,960
300
6,013
416
21,235
18,048
(98)
97
(8)
(39)
(48)
21,187
148
120
25
(102)
191
18,239
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 13, 2022
254
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsStandaloneFinancial statementsStrategy reviewApproaching value creation Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2022
Index
A Independent Auditor’s Report .......................................................................................................................................................................................................256
B Consolidated Balance Sheet............................................................................................................................................................................................................264
C Consolidated Statement of Profit and Loss ..............................................................................................................................................................................266
D Consolidated Statement of Changes in Equity .......................................................................................................................................................................268
E Consolidated Statement of Cash Flows .......................................................................................................................................................................................273
F Overview and notes to the consolidated financial statements ........................................................................................................................................275
1. Overview
1.1 Company overview .....................................................................................................................................................................................................................275
1.2 Basis of preparation of financial statements .....................................................................................................................................................................275
1.3 Basis of consolidation ................................................................................................................................................................................................................275
1.4 Use of estimates and judgments ............................................................................................................................................................................................275
1.5 Critical accounting estimates and judgments ...................................................................................................................................................................275
1.6 Recent accounting pronouncements ..................................................................................................................................................................................276
2. Notes to the consolidated financial statements
2.1 Business combinations ...............................................................................................................................................................................................................277
2.2 Property, plant and equipment ..............................................................................................................................................................................................278
2.3 Capital work-in-progress ...........................................................................................................................................................................................................280
2.4 Goodwill and other intangible assets ...................................................................................................................................................................................281
2.5 Investments ....................................................................................................................................................................................................................................283
2.6 Loans .................................................................................................................................................................................................................................................286
2.7 Other financial assets ..................................................................................................................................................................................................................286
2.8 Trade receivables ..........................................................................................................................................................................................................................287
2.9 Cash and cash equivalents ........................................................................................................................................................................................................287
2.10 Other assets ...................................................................................................................................................................................................................................288
2.11 Financial instruments .................................................................................................................................................................................................................288
2.12 Equity ...............................................................................................................................................................................................................................................297
2.13 Other financial liabilities ...........................................................................................................................................................................................................303
2.14 Trade payables ..............................................................................................................................................................................................................................304
2.15 Other liabilities .............................................................................................................................................................................................................................305
2.16 Provisions .......................................................................................................................................................................................................................................305
2.17 Income taxes .................................................................................................................................................................................................................................305
2.18 Revenue from operations .........................................................................................................................................................................................................309
2.19 Other income, net .......................................................................................................................................................................................................................312
2.20 Expenses ........................................................................................................................................................................................................................................313
2.21 Leases ..............................................................................................................................................................................................................................................313
2.22 Employee benefits .....................................................................................................................................................................................................................315
2.23 Reconciliation of basic and diluted shares used in computing earnings per share ..........................................................................................319
2.24 Contingent liabilities and commitments ..........................................................................................................................................................................319
2.25 Related party transactions ......................................................................................................................................................................................................320
2.26 Segment reporting .....................................................................................................................................................................................................................327
2.27 Function-wise classification of Consolidated Statement of Profit and Loss .........................................................................................................329
255
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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, 2022,
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, 2022 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.
256
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 2.18 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
257
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 2.18 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 using the 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.
258
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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, 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.
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.
259
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation •
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.
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.
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 of the aforesaid consolidated financial statements.
b)
c)
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.
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.
d)
In our opinion, the aforesaid consolidated 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 of the Company as on March 31, 2022 taken on record
by the Board 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, 2022 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)
ii)
The consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group.
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;
260
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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.
iv)
(a) The respective Managements of the Company and its subsidiaries which are companies incorporated in India,
whose financial statements have been audited under the Act, have represented to us that, to the best of their
knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company or any of such subsidiaries to or in any other person or entity, including foreign entity (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or
any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(b) The respective Managements of the Company and its subsidiaries which are companies incorporated in India,
whose financial statements have been audited under the Act, have represented to us that, to the best of their
knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by
the Company or any of such subsidiaries from any person or entity, including foreign entity (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company or any of such subsidiaries
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances
performed by us on the Company and its subsidiaries which are companies incorporated in India whose financial
statements have been audited under the Act, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any
material misstatement.
v) As stated in Note 2.12.3 to the consolidated financial statements
a. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance
with Section 123 of the Act, as applicable.
b. The interim dividend declared and paid by the Company during the year and until the date of this report is in
compliance with Section 123 of the Act.
c. The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of
the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section
123 of the Act, as applicable.
2. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/
“CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s report, according
to the information and explanations given to us, and based on the CARO reports issued by us for the Company and its subsidiaries
included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we report that
there are no qualifications or adverse remarks in these CARO reports.
Place: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 22039826AGZRHG8850
261
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
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, 2022, 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.
262
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 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, 2022,
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: Bengaluru
Date: April 13, 2022
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 22039826AGZRHG8850
263
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation in ₹ crore
Note
As at March 31,
2022
2021
2.2
2.21
2.3
2.4.1 & 2.1
2.4.2
2.5
2.6
2.7
2.17
2.17
2.10
2.5
2.8
2.9
2.6
2.7
2.17
2.10
13,075
12,560
4,823
416
6,195
1,707
4,794
922
6,079
2,072
13,651
11,863
34
1,460
1,212
6,098
2,029
32
1,141
1,098
5,811
1,281
50,700
47,653
6,673
22,698
17,472
248
8,727
54
11,313
67,185
2,342
19,294
24,714
159
6,410
–
7,814
60,733
1,17,885
1,08,386
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
264
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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
Lease liabilities
Trade payables
Other financial liabilities
Other current liabilities
Provisions
Income tax liabilities (net)
Total current liabilities
Total equity and liabilities
Note
As at March 31,
2022
2021
2.12
2.21
2.13
2.17
2.15
2.21
2.14
2.13
2.15
2.16
2.17
2,098
73,252
2,124
74,227
75,350
76,351
386
431
75,736
76,782
4,602
2,337
1,156
451
8,546
872
4,134
15,837
9,178
975
2,607
4,587
1,514
875
763
7,739
738
2,645
11,390
6,233
713
2,146
33,603
23,865
1,17,885
1,08,386
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
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2022
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer and
Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
265
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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
in ₹ crore, except equity share and per equity share data
Note
Year ended March 31,
2.18
2.19
2.22
2.20
2.2, 2.4.2 &
2.21
2.20
2.17
2.17
2022
2021
1,21,641
1,00,472
2,295
2,201
1,23,936
1,02,673
63,986
12,606
827
6,811
611
1,885
3,476
200
3,424
93,826
30,110
7,811
153
55,541
7,084
554
4,223
634
1,261
3,267
195
3,286
76,045
26,628
6,672
533
22,146
19,423
266
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Consolidated Statement of Profit and Loss (contd.)
Particulars
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
Earnings per equity share
Equity shares of par value ₹ 5 each
Basic (₹)
Diluted (₹)
Note
Year ended March 31,
2022
2021
2.22
2.5
2.11
2.5
(85)
96
11
(8)
228
(49)
171
182
134
119
253
25
130
(102)
53
306
22,328
19,729
22,110
19,351
36
72
22,146
19,423
22,293
19,651
35
78
22,328
19,729
52.52
52.41
45.61
45.52
4,20,95,46,724 4,24,24,16,665
4,21,85,25,134 4,25,07,32,467
Weighted average equity shares used in computing earnings per equity share
2.23
Basic
Diluted
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
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2022
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer and
Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
267
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2
6
8
Consolidated Statement of Changes in Equity
Particulars
Equity
share
capital
(1)
Reserves and surplus
Other comprehensive income
Other equity
Capital
reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (2)
Other
reserves(3)
Equity
instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
Exchange
differences
on
translating
the
financial
statements
of a foreign
operation
in ₹ crore
Non-
controlling
interest
Total
equity
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
2,122
54
111
282
56,309
1,158
297
4,070
6
39
1207
(15)
(190)
65,450
394 65,844
Profit for the period
–
–
–
–
19,351
–
–
–
–
–
–
–
–
19,351
72
19,423
Remeasurement
of the net defined
benefit liability /
asset net* (Refer to
Note 2.22)
Equity instruments
through other
comprehensive
income net* (Refer to
Notes 2.5 and 2.17)
Fair value changes
on derivatives
designated as cash
flow hedge net*
(Refer to Note 2.11)
Exchange
differences on
translation of
foreign operations
Fair value changes
on investments*
(Refer to Notes 2.5
and 2.17)
Total
comprehensive
income for the
period
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
–
–
–
–
–
–
–
–
–
–
–
–
134
134
–
134
–
–
–
–
–
–
–
–
–
119
–
–
–
119
–
119
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,351
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25
–
124
–
–
–
25
–
25
124
6
130
–
–
–
(102)
(102)
–
(102)
119
124
25
32
19,651
78
19,729
2
–
–
13
–
–
–
–
–
–
–
–
–
15
–
15
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Particulars
Equity
share
capital
(1)
Reserves and surplus
Other comprehensive income
Other equity
Capital
reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (2)
Other
reserves(3)
Equity
instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
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
Employee stock
compensation
expense (Refer to
Note 2.12)
Transfer on account
of exercise of stock
options (Refer to
Note 2.12)
Transfer on account
of options not
exercised
Effect of
modification
of share-based
payment
awards(Refer to Note
2.12)
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
Transferred to
Special Economic
Zone Re-investment
Reserve
Transferred from
Special Economic
Zone Re-investment
Reserve on
utilization
Balance as at March
31, 2021
2
6
9
–
–
–
–
–
–
253
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
260
–
–
45
–
–
–
–
–
–
–
–
(28)
(9,120)
–
3
–
–
–
–
–
–
(1,554)
1,554
(260)
(3)
85
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,354)
–
–
3,354
–
–
–
–
–
–
–
–
–
–
–
–
–
–
253
–
253
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
85
–
85
45
–
45
–
(20)
(20)
(28)
(9,120)
(21)
(49)
–
(9,120)
–
–
–
–
–
–
–
–
–
–
1,039
–
–
(1,039)
2,124
54
111
600
62,643
2,715
372
6,385
–
6
–
–
158
1,331
–
10
–
–
–
–
(158)
76,351
431
76,782
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2
7
0
Consolidated Statement of Changes in Equity (contd.)
Particulars
Equity
share
capital
(1)
Reserves and surplus
Other comprehensive income
Other equity
Capital
reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (2)
Other
reserves(3)
Equity
instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
Exchange
differences
on
translating
the
financial
statements
of a foreign
operation
in ₹ crore
Non-
controlling
interest
Total
equity
Total equity
attributable
to equity
holders
of the
Company
Balance as at April
1, 2021
Changes in equity
for the year ended
March 31, 2022
2,124
54
111
600
62,643
2,715
372
6,385
6
158
1331
10
(158)
76,351
431 76,782
Profit for the period
–
–
–
–
22,110
–
–
–
–
–
–
–
–
22,110
36
22,146
Remeasurement
of the net defined
benefit liability /
asset* (Refer to Note
2.22)
Equity instruments
through other
comprehensive
income* (Refer to
Notes 2.5 and 2.17)
Fair value changes
on derivatives
designated as cash
flow hedge* (Refer to
Note 2.11)
Exchange
differences on
translation of foreign
operations
Fair value changes
on investments*
(Refer to Notes 2.5
and 2.17)
Total
comprehensive
income for the
period
Shares issued on
exercise of employee
stock options (Refer
to Note 2.12)
–
–
–
–
–
–
–
–
–
–
–
–
(85)
(85)
–
(85)
–
–
–
–
–
–
–
–
–
96
–
–
–
96
–
96
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22,110
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(8)
–
(8)
–
(8)
–
229
–
–
229
(1)
228
–
–
–
(49)
(49)
–
(49)
96
229
(8)
(134)
22,293
35
22,328
2
–
–
19
–
–
–
–
–
–
–
–
–
21
–
21
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Equity
share
capital
(1)
Reserves and surplus
Other comprehensive income
Other equity
Capital
reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
Share
options
outstanding
account
Special
Economic
Zone Re-
investment
Reserve (2)
Other
reserves(3)
Equity
instruments
through other
comprehensive
income
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income / (loss)
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
Employee stock
compensation
expense (Refer to
Note 2.12)
Buyback of equity
shares (Refer to Note
2.12)#
Transaction costs
relating to buyback*
Amount transferred
to capital
redemption reserve
upon buyback
Transfer on account
of options not
exercised (Refer to
Note 2.12)
Transfer on account
of exercise of stock
options
Income tax benefit
arising on exercise of
stock options
Changes in the
controlling stake of
the subsidiary
Dividends paid to
non-controlling
interest of subsidiary
Dividends
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, 2022
2
7
1
–
–
–
393
–
(28)
–
–
–
–
–
–
–
(640)
(8,822)
(1,603)
–
–
(24)
–
–
28
–
–
(28)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
218
3
–
–
–
–
–
1
–
–
(12,655)
–
(10)
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10
–
–
–
(1)
(218)
60
–
–
–
–
–
–
–
–
(3,054)
–
–
3,054
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
393
–
393
(11,093)
–
(11,093)
(24)
–
(24)
–
–
–
–
–
–
–
–
–
63
–
63
1
–
(1)
–
(79)
(79)
(12,655)
–
(12,655)
–
–
–
–
–
–
–
–
–
–
1,100
–
–
(1,100)
2,098
54
139
200
61,313
1,061
606
8,339
–
16
–
–
254
1,560
–
2
–
–
–
–
(292)
75,350
386
75,736
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2
7
2
* Net of tax
#
Including tax on buyback of ₹ 1,893 crore
(1) Net of treasury shares 1,37,25,712
(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 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 the terms of the Sec 10AA(2) of the Income-tax Act, 1961.
(3) 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
Bengaluru
April 13, 2022
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer and
Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 corporations
Redemption of deposits placed with corporations
Interest and dividend received
Payment towards acquisition of business, net of cash acquired
Payment of contingent consideration pertaining to acquisition of business
Escrow and other deposits pertaining to buyback
Redemption of escrow and other deposits pertaining to buyback
Other receipts
Other payments
Payments to acquire investments
Tax-free bonds and government bonds
Liquid mutual funds and fixed maturity plan securities
Non-convertible debentures
Certificates of deposit
in ₹ crore
Note
Year ended March 31,
2022
2021
22,146
19,423
2.17
2.2, 2.4.2 & 2.21
2.19
2.12
7,964
3,476
(1,645)
200
170
119
415
76
(7,937)
(1,914)
1,489
6,938
31,497
(7,612)
23,885
(2,161)
(906)
753
1,898
–
(53)
(420)
420
67
(22)
–
(54,064)
(1,609)
(4,184)
7,205
3,267
(1,615)
195
190
(62)
333
(91)
(1,835)
(534)
(245)
3,382
29,613
(6,389)
23,224
(2,107)
(725)
518
1,418
(1,221)
(158)
–
–
49
(45)
(318)
(35,196)
(3,689)
–
273
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Consolidated Statement of Cash Flows (contd.)
Particulars
Note
Year ended March 31,
Government securities
Others
Proceeds on sale of investments
Tax-free bonds and government bonds
Non-convertible debentures
Government securities
Certificates of deposit
Liquid mutual funds and fixed maturity plan securities
Preference and equity securities
Others
Net cash (used in) / from investing activities
Cash flows from financing activities
Payment of lease liabilities
Payment of dividends
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
Other payments
Buyback of equity shares including transaction cost and tax on buyback
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
2022
(4,254)
(24)
20
2,201
1,457
787
2021
(7,510)
(25)
–
1,251
2,704
1,149
53,669
36,353
–
9
73
23
(6,416)
(7,456)
(915)
(12,652)
(698)
(9,117)
(79)
21
(2)
236
(126)
(11,125)
(24,642)
(7,173)
24,714
(69)
17,472
(20)
15
(49)
83
–
–
(9,786)
5,982
18,649
83
24,714
471
504
2.9
2.9
2.9
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
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2022
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer and
Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
D. Sundaram
Director
A.G.S. Manikantha
Company Secretary
274
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 the BSE Limited 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 Group’s Consolidated financial statements are approved for
issue by the Company’s Board of Directors on April 13, 2022.
1.2 Basis of preparation of financial statements
These Consolidated financial statements are prepared in
accordance with the Indian Accounting Standards (Ind AS), under
the historical cost convention on the 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 2.25. 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 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 the 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 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
275
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation are committed to perform their respective obligations under
the contract, and the contract is legally enforceable. 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, and allocation of transaction price to these
distinct performance obligations involves 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 incomplete 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 U S, 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.
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
Notes 2.17 and 2.24).
276
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 2.4.2).
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 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).
e. Impairment of goodwill
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 2.4.1).
1.6 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
On March 23, 2022, the MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2022, as below.
Ind AS 16, Property Plant and equipment – The amendment
clarifies that excess of net sale proceeds of items produced over
the cost of testing, if any, shall not be recognized in the profit or
loss but deducted from the directly attributable costs considered
as part of cost of an item of property, plant, and equipment. The
effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022. The Group has evaluated
the amendment and there is no impact on its consolidated
financial statements.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets
– The amendment specifies that the ‘cost of fulfilling’ a contract
comprises the ‘costs that relate directly to the contract’. Costs
that relate directly to a contract can either be incremental costs
of fulfilling that contract (examples would be direct labour,
materials) or an allocation of other costs that relate directly
to fulfilling contracts (an example would be the allocation of
the depreciation charge for an item of property, plant and
equipment used in fulfilling the contract). The effective date
for adoption of this amendment is annual periods beginning
on or after April 1, 2022, although early adoption is permitted.
The Group has evaluated the amendment and the impact is not
expected to be material.
2. Notes to the consolidated financial statements
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 purchase price in 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 purchase price
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.
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.
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.
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.
Proposed acquisition
On March 22, 2022, Infosys Consulting Pte. Ltd. (a wholly-owned
subsidiary of Infosys Limited) entered into a definitive agreement
to acquire oddity, a Germany-based digital marketing,
experience, and commerce agency, for a total consideration
of up to EUR 50 million (approximately ₹ 420 crore), which
includes earn-out and bonuses. This acquisition is expected to
strengthen the Group’s creative, branding and experience design
capabilities. To consummate this transaction, Infosys Consulting
Pte. Ltd. has simultaneously acquired Infosys Germany GmBH
(formerly Kristall 247. GmBH).
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 allocated to assets acquired and liabilities
assumed based on the determination of fair values at the dates of
acquisition is as follows :
Component
Net assets(1)
Intangible assets –
Vendor relationships
Customer contracts
and relationships
Brand
Software
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Total purchase price
Acquiree’s
carrying
amount
Fair value
adjustments
in ₹ crore
Purchase
price
allocated
137
–
137
–
–
–
–
–
137
266
179
57
33
(23)
512
266
179
57
33
(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.
277
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Depreciation methods, useful lives and residual values are
reviewed periodically, including at each financial year end. The
useful 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.
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 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.
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 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.
Goodwill amounting to ₹ 520 crore is not tax-deductible.
Goodwill pertaining to these business combinations is
allocated to all the operating segments as more fully
described in Note 2.4.1.
The purchase consideration of ₹ 1,407 crore includes cash of
₹ 1,307 crore and 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 the contingent consideration are the
probabilities assigned towards achievement of financial
targets and discount rates ranging from 12% to 13.5%. The
undiscounted value of the contingent consideration as of March
31, 2022 was ₹ 72 crore.
Additionally, these acquisitions have retention payouts payable
to the employees of the acquiree over the next one to two 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 Consolidated 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, 2022, the amount has been
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.
2.2 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 charge in respect of periodic depreciation is
derived at after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life.
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 are different from the useful lives as prescribed under Part C of
Schedule II of the Companies Act 2013.
(2)
Includes solar plant with a useful life of 20 years.
278
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Gross carrying
value as at April 1,
2021
Additions
Deletions*
Translation
difference
Gross carrying
value as at March
31, 2022
Accumulated
depreciation as at
April 1, 2021
Depreciation
Accumulated
depreciation on
deletions*
Translation
difference
Accumulated
depreciation as at
March 31, 2022
Carrying value as
at April 1, 2021
Carrying value as
at March 31, 2022
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2022 are as follows :
Particulars
Land –
Freehold
Buildings (1)
Plant and
machinery
Office
equipment
Computer
equipment
1,399
10,565
3,296
1,371
599
(1)
256
(349)
68
(15)
7,639
1,542
(672)
140
(17)
61
7
3
18
6
32
–
–
in ₹ crore
Vehicles
Total
Furniture
and
fixtures
Leasehold
improvements
2,149
1,188
44
27,651
79
(46)
13
–
–
–
2,716
(1,100)
108
1,431
11,224
3,210
1,427
8,527
2,278
1,234
44
29,375
–
–
–
–
(3,675)
(2,425)
(1,043)
(5,636)
(1,580)
(417)
(245)
(120)
(1,055)
(210)
(700)
(181)
(32)
(15,091)
(5)
(2,233)
–
(8)
330
(4)
14
(1)
671
(14)
16
(5)
37
(12)
–
–
1,068
(44)
–
(4,100)
(2,344)
(1,150)
(6,034)
(1,779)
(856)
(37)
(16,300)
1,399
6,890
1,431
7,124
871
866
328
2,003
277
2,493
569
499
488
12
12,560
378
7
13,075
* During the year ended March 31, 2022, certain assets which were old and not in use having gross book value of ₹ 316 crore (net book value : Nil) were retired.
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2021 were as follows :
Particulars
Land –
Freehold
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,
2020
1,318
10,016
3,185
1,265
Additions
82
511
117
118
6,676
1,159
2,073
91
1,063
152
45
25,641
1
2,231
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
–
(1)
–
–
–
38
1
(10)
2
(16)
4
(211)
2
(19)
1
(33)
–
(2)
10
(292)
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)
(2,145)
(934)
(4,885)
(1,380)
(550)
(28)
(13,206)
279
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Land –
Freehold
Buildings (1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and
fixtures
Leasehold
improvements
Vehicles
Total
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
–
(386)
(290)
(123)
(954)
(222)
(185)
(6)
(2,166)
–
–
–
(5)
10
–
15
(1)
199
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
(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 Capital work-in-progress
Particulars
Capital work-in-progress
Total capital work-in-progress
As at March 31,
2022
416
416
The capital work-in-progress ageing schedule for the years ended March 31, 2022 and March 31, 2021 is as follows :
Particulars
Amount in capital-work-in progress for a period of
Projects in progress
Total capital work-in-progress
Less than 1 year
1-2 years
2-3 years
272
423
272
423
48
268
48
268
51
37
51
37
More than 3
years
45
194
45
194
in ₹ crore
2021
922
922
in ₹ crore
Total
416
922
416
922
For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, the project-wise details
of when the project is expected to be completed as of March 31, 2022 and March 31, 2021 are as follows :
Particulars
To be completed in
Less than 1 year
1-2 years
2-3 years
More than 3
years
Projects in progress
NG-SZ-SDB1
BN-SP-RETRO
KL-SP-SDB1
280
89
–
30
–
–
–
–
–
–
–
27
–
–
–
–
–
–
–
–
–
–
–
–
–
in ₹ crore
Total
89
–
30
–
27
–
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Particulars
BH-SZ-MLP
IN-OS-SDB
MY-SZ-SDB8
Total capital work-in-progress(1)
Less than 1 year
1-2 years
2-3 years
To be completed in
More than 3
years
116
–
–
407
–
160
235
567
–
67
–
–
–
–
27
67
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
116
67
–
407
–
160
262
634
(1) There are no subsidiaries in the Group having more than 10% of the total capital work-in-progress.
2.4 Goodwill and other intangible assets
2.4.1 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 and
which represent the lowest level at which goodwill is monitored
for internal management purposes. 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. Key assumptions in the cash flow
projections are prepared based on current economic conditions
and includes estimated long-term growth rates, weighted
average cost of capital and estimated operating margins.
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 changes in the carrying amount of goodwill is as
follows :
in ₹ crore
Particulars
As at March 31,
Carrying value at the beginning
Goodwill on acquisitions
(Refer to Note 2.1)
Translation differences
2022
6,079
–
116
2021
5,286
758
35
Carrying value at the end
6,195
6,079
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,
2022 and March 31, 2021 is as follows :
Segment
As at March 31,
in ₹ crore
Financial services
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Operating segments without
significant goodwill
Total
2022
1,366
817
619
1,070
499
4,371
938
5,309
2021
1,359
797
605
1,046
487
4,294
925
5,219
The goodwill pertaining to Panaya amounting to `886 crore and
`860 crore as at March 31, 2022 and March 31, 2021, respectively,
is tested for impairment at the entity level.
281
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
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 :
Particulars
As at March 31,
in %
Long-term growth rate
Operating margins
Discount rate
2022
8-10
19-21
12.0
2021
8-10
19-21
11.7
The above discount rate is based on the Weighted Average Cost
of Capital (WACC) of the Company. As at March 31, 2022, the
estimated recoverable amount of the CGU exceeded its carrying
amount. Reasonable sensitivities in key assumptions is unlikely to
cause the carrying amount to exceed the recoverable amount of
the cash generating units.
2.4.2 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 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.
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2022 are as follows :
Particulars
Gross carrying value as at April 1, 2021
Additions
Deletions
Translation difference
Gross carrying value as at March 31, 2022
Accumulated amortization as at April 1, 2021
Amortization expense
Deletions
Translation differences
Accumulated amortization as at March 31, 2022
Carrying value as at April 1, 2021
Carrying value as at March 31, 2022
Estimated useful life (in years)
Estimated remaining useful life (in years)
282
Customer-
related
Software-
related
Intellectual
property
rights-related
Brand or
trademark-
related
in ₹ crore
Others*
Total
2,064
–
–
16
2,080
(1,021)
(238)
–
(20)
(1,279)
1,043
801
1-15
1-12
824
85
–
6
915
(492)
(68)
–
(9)
(569)
332
346
3-10
1-7
1
–
–
–
1
(1)
–
–
–
(1)
–
–
–
–
293
666
3,848
–
–
6
299
(99)
(40)
–
(2)
–
–
20
85
–
48
686
3,981
(163)
(1,776)
(118)
(464)
–
(3)
–
(34)
(141)
(284)
(2,274)
2,072
1,707
194
158
3-10
1-8
503
402
3-7
1-6
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2021 were as follows :
Particulars
Customer-
related
Software
-related
Intellectual
property
rights-related
Brand or
trademark-
related
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
1,878
–
179
–
7
2,064
(755)
(272)
–
6
697
101
33
–
(7)
824
(450)
(53)
–
11
Accumulated amortization as at March 31, 2021
(1,021)
(492)
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)
1,123
1,043
1-15
1-13
247
332
3-10
1-8
* Majorly includes intangibles related to vendor relationships
1
–
–
–
–
1
(1)
–
–
–
(1)
–
–
–
–
241
–
57
–
(5)
293
(66)
(34)
–
1
(99)
175
194
3-10
1-9
in ₹ crore
Others*
Total
411
–
266
–
(11)
666
(56)
3,228
101
535
–
(16)
3,848
(1,328)
(107)
(466)
–
–
–
18
(163)
(1,776)
1,900
2,072
355
503
3-7
1-7
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, 2022 and
March 31, 2021 was ₹ 922 crore and ₹ 945 crore, respectively.
2.5 Investments
Particulars
Non-current
Unquoted
Investments carried at fair value through other comprehensive income (Refer to Note 2.5.1)
Preference securities
Equity instruments
Investments carried at fair value through profit and loss (Refer to Note 2.5.1)
Preference securities
Compulsorily convertible debentures
Others (1)
Quoted
Investments carried at amortized cost
Tax-free bonds
Government bonds
in ₹ crore
As at March 31,
2022
2021
192
2
194
24
7
152
183
1,901
–
1,901
165
2
167
11
7
74
92
2,131
21
2,152
283
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Particulars
Investments carried at fair value through other comprehensive income
As at March 31,
2022
2021
Non-convertible debentures
Government securities
Total non-current investments
Current
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 amortized cost
Tax-free bonds
Government bonds
Investments carried at fair value through other comprehensive income
Government securities
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
3,718
7,655
11,373
13,651
2,012
2,012
3,429
3,429
200
21
221
516
495
1,011
6,673
20,324
14,506
1,247
13,612
5,818
2,122
16,007
2,195
(1) Uncalled capital commitments outstanding as at March 31, 2022 and March 31, 2021 was ₹ 28 crore and ₹ 42 crore, respectively.
Refer to Note 2.11 for Accounting policies on Financial Instruments.
The details of amounts recorded in other comprehensive income are as follows :
Particulars
Year ended March 31, 2022
Year ended March 31, 2021
Net gain / (loss) on
Non-convertible debentures
Certificates of deposit
Government securities
Equity and preference securities
284
Gross
(13)
2
(60)
119
Tax
1
(1)
22
(23)
Net
Gross
(12)
1
(38)
96
(5)
(3)
(114)
136
Tax
1
1
18
(17)
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
in ₹ crore
Net
(4)
(2)
(96)
119
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Method of fair valuation
Class of investment
Method
Liquid mutual fund units
Quoted price
Tax-free bonds and government bonds
Quoted price and market observable inputs
Non-convertible debentures
Quoted price and market observable inputs
Government securities
Certificates of deposit
Quoted price and market observable inputs
Market observable inputs
Unquoted equity and preference securities – carried
at fair value through other comprehensive income
Discounted cash flows method, Market multiples
method, Option pricing model
Unquoted equity and preference securities – carried
at fair value through profit and loss
Discounted cash flows method, Market multiples
method, Option pricing model
Unquoted compulsorily convertible debentures –
carried at fair value through profit and loss
Discounted cash flows method
Others
Total
Discounted cash flows method, Market multiples
method, Option pricing model
in ₹ crore
Fair value as at March 31,
2022
2,012
2,447
4,213
8,171
3,429
2021
1,500
2,536
4,827
5,467
–
194
167
24
7
11
7
152
20,649
74
14,589
Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments.
2.5.1 Details of investments
The details of investments in preference, equity and other instruments at March 31, 2022 and March 31, 2021 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.
1,10,59,340 (11,05,934) 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.
Nil (11,80,358) Series C-1 Preferred Stock
Nil (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
in ₹ crore, except otherwise stated
As at March 31,
2022
2021
–
150
22
–
23
20
–
94
20
40
11
11
215
176
–
2
–
2
–
2
–
2
285
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Particulars
Compulsorily convertible debentures
Ideaforge Technology Private Limited
3,886 (3,886) compulsorily convertible debentures, fully paid up, par value ₹ 19,300 each
As at March 31,
2022
2021
7
7
76
77
153
377
2022
33
177
7
7
42
32
74
259
2021
42
84
1,460
1,141
7
58
2,177
5,659
362
6
30
2,016
3,173
620
143
188
50
271
8,727
10,187
38
339
6,410
7,551
10,044
7,363
20
123
25
163
Particulars
As at March 31,
in ₹ crore
As at March 31,
2022
2021
34
34
–
–
–
34
32
32
28
28
–
32
248
248
282
159
159
191
in ₹ crore
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
2.21)(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
As at March 31,
2022
2021
* 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.
Total investment in debentures
Others
Stellaris Venture Partners India
The House Fund II, L.P.
Total investment in others
Total
2.6 Loans
Particulars
Non-current
Loans considered good – Unsecured
Other loans
Loans to employees
Loans credit impaired – Unsecured
Other loans
Loans to employees
Less : allowances for credit
impairment
Total non-current loans
Current
Loans considered good – Unsecured
Other loans
Loans to employees
Total current loans
Total loans
2.7 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
2.21)(1)
47
695
186
49
399
217
322
350
286
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 2.8 Trade receivables
Particulars
Particulars
Current
in ₹ crore
As at March 31,
2022
2021
Trade receivable considered good
– Unsecured
23,252
19,760
Trade receivable – credit impaired
– Unsecured
Less : Allowance for credit
impairment
Trade receivable – credit
impaired – Unsecured
As at March 31,
2022
2021
113
113
–
153
153
–
Less : Allowance for expected
credit loss
Trade receivable considered
good – Unsecured
554
466
Total trade receivables
22,698
19,294
22,698
19,294
The trade receivables ageing schedule for the years ended as on March 31, 2022 and March 31, 2021 is as follows :
Particulars
Not due
Outstanding for following periods from due date of payment
Total
Less than 6
months
6 months to
1 year
1-2 years
2-3 years
More than
3 years
in ₹ crore
Undisputed trade receivables – considered
good
Undisputed trade receivables – credit
impaired
Disputed trade receivables – considered good
Disputed trade receivables – credit impaired
Less : Allowance for credit loss
Total trade receivables
17,394
15,693
5,561
3,956
–
2
–
–
–
–
1
2
–
1
–
–
17,394
15,695
5,562
3,959
230
35
3
94
–
3
–
–
233
132
11
33
62
40
–
–
4
–
77
73
35
3
34
10
–
–
–
4
69
17
2.9 Cash and cash equivalents
in ₹ crore
Particulars
Particulars
Balances with banks
As at March 31,
2022
2021
In current and deposit accounts
13,942
20,069
Cash on hand
Others
Deposits with financial
institutions
–
–
3,530
4,645
Total cash and cash equivalents
17,472
24,714
Balances with banks in unpaid
dividend accounts
36
33
Deposit with more than 12 months
maturity
Balances with banks held as margin
money deposits against guarantees
Cash and cash equivalents as at March 31, 2022 and March 31,
2021 include restricted cash and bank balances of ₹ 471 crore
and ₹ 504 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.
287
21
36
23,252
19,756
4
1
–
–
5
–
30
37
104
149
–
4
9
4
23,365
19,913
667
619
22,698
19,294
As at March 31,
2022
2021
1,616
13,659
1
71
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
193
141
(ii) Financial assets at fair value through other comprehensive
income (FVOCI)
2.10 Other assets
Particulars
Non-current
Capital advances
Advances other than capital advances
Others
Withholding taxes and others
Unbilled revenues #
Defined benefit plan assets (Refer
to Note 2.22)
Prepaid expenses
Deferred contract cost*
Cost of obtaining a contract
Cost of fulfillment
in ₹ crore
As at March 31,
2022
2021
88
141
674
246
20
99
593
309
705
195
19
78
112
31
Total non-current other assets
2,029
1,281
Current
Advances other than capital advances
Payment to vendors for supply of
goods
Others
Unbilled revenues #
Withholding taxes and others
Prepaid expenses
Deferred contract cost*
Cost of obtaining a contract
Cost of fulfillment
Other receivables
Total current other assets
Total other assets
5,909
1,941
1,996
858
91
325
4,354
2,091
1,160
49
16
3
11,313
13,342
7,814
9,095
# Classified as non-financial asset as the contractual right to consideration is
dependent on completion of contractual milestones.
*
Includes technology assets taken over by the Company from a customer
as part of a transformation project that is not considered as distinct goods
or services and the control related to the assets is not transferred to the
Company in accordance with Ind AS 115, Revenue from Contract with
Customers. Accordingly, the same has been considered as a reduction
to the total contract value and accounted as deferred contract cost.
Further, as at March 31, 2022, the Company has entered into a financing
arrangement with a third party for these assets for `895 crore, which has
been considered as financial liability. This includes `869 crore settled
directly by the third party to the customer on behalf of the Company and
accordingly considered as non-cash transaction. (Refer to Note 2.13)
Withholding taxes and others primarily consist of input tax
credits and Cenvat recoverable from Government of India.
288
2.11 Financial instruments
Accounting policy
2.11.1 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, which are not at fair
valued 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.
2.11.2 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.
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.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 2.11.4 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 approximate fair value due to the
short maturity of those instruments.
2.11.5 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 Group determines the allowance for credit losses based on
historical loss experience adjusted to reflect current and estimated
future economic conditions. The Group considers current and
anticipated future economic conditions relating to industries the
Group deals with and the countries where it operates.
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 recorded is recognized as an impairment gain or loss in the
Consolidated Statement of Profit and Loss.
(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 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 the
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.
2.11.3 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.
289
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2022 are as follows :
Particulars
Amortized
cost
Financial assets / liabilities at
fair value through profit or loss
Financial assets / liabilities at
fair value through OCI
Designated
upon initial
recognition
Mandatory
Mandatory
Equity
instruments
designated
upon initial
recognition
in ₹ crore
Total fair
value
Total
carrying
value
Assets
Cash and cash equivalents (Refer to
Note 2.9)
Investments (Refer to Note 2.5)
Equity and preference securities
Compulsorily convertible
debentures
Tax-free bonds and government
bonds
Liquid mutual fund units
Non-convertible debentures
Government securities
Other investments
Certificates of deposit
Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)
Other financials assets (Refer to Note
2.7)(3)
Total
Liabilities
Trade payables
Lease liabilities (Refer to Note 2.21)
Financial liability under option
arrangements (Refer to Note 2.13)
Other financial liabilities (Refer to Note
2.13)
Total
17,472
–
–
2,122
–
–
–
–
–
22,698
282
10,044
52,618
4,134
5,474
–
15,061
24,669
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
24
7
–
2,012
–
–
152
–
–
–
123
2,318
–
–
655
181
836
–
194
–
–
–
–
–
–
–
–
–
–
17,472
17,472
–
–
–
–
4,213
8,171
–
218
218
7
7
2,122
2,447(1)
2,012
4,213
8,171
152
2,012
4,213
8,171
152
3,429
3,429
3,429
–
–
22,698
22,698
282
282
–
194
20
10,187
10,096 (2)
15,833
70,963
71,197
–
–
–
–
–
–
–
–
4,134
5,474
4,134
5,474
655
655
3
3
15,245
25,508
15,245
25,508
(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 ₹ 91 crore
(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
290
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows :
Particulars
Amortized
cost
Financial assets / liabilities at
fair value through profit or loss
Financial assets / liabilities at
fair value through OCI
Designated
upon initial
recognition
Mandatory
Mandatory
Equity
instruments
designated
upon initial
recognition
in ₹ crore
Total fair
value
Total
carrying
value
Assets
Cash and cash equivalents (Refer to
Note 2.9)
Investments (Refer to Note 2.5)
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 2.8)
Loans (Refer to Note 2.6)
Other financials assets (Refer to Note
2.7)(3)
Total
Liabilities
Trade payables
Lease liabilities (Refer to Note 2.21)
Financial liability under option
arrangements (Refer to Note 2.13)
Other financial liabilities (Refer to Note
2.13)
Total
24,714
–
–
2,152
–
–
–
–
19,294
191
7,363
53,714
2,645
5,325
–
9,877
17,847
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
11
7
–
1,500
–
–
74
–
–
163
1,755
–
–
693
217
910
–
167
–
–
–
–
–
–
–
–
–
24,714
24,714
–
–
–
–
4,827
5,467
–
–
–
178
178
7
7
2,152
2,536 (1)
1,500
4,827
5,467
74
1,500
4,827
5,467
74
19,294
19,294
191
191
–
167
25
7,551
7,459 (2)
10,319
65,955
66,247
–
–
–
–
–
–
–
–
2,645
5,325
2,645
5,325
693
693
–
–
10,094
18,757
10,094
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
For trade receivables and trade payables and other assets and 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.
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).
291
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2022 is as follows :
Particulars
Assets
Investments in liquid mutual funds (Refer to Note 2.5)
Investments in tax-free bonds (Refer to Note 2.5)
Investments in government bonds (Refer to Note 2.5)
Investments in non-convertible debentures (Refer to Note 2.5)
Investments in certificates of deposit (Refer to Note 2.5)
Investment in government securities (Refer to Note 2.5)
Investments in equity instruments (Refer to Note 2.5)
Investments in preference securities (Refer to Note 2.5)
Investments in compulsorily convertible debentures (Refer to Note 2.5)
Other investments (Refer to Note 2.5)
Derivative financial instruments – gain on outstanding foreign exchange forward
and options contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward
and options contracts (Refer to Note 2.13)
Financial liability under option arrangements (Refer to Note 2.13)
Liability towards contingent consideration (Refer to Note 2.13)(1)
(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5% .
in ₹ crore
As at March
31, 2022
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
2,012
2,425
22
4,213
3,429
8,171
2
216
7
152
143
61
655
123
2,012
1,238
22
3,736
–
8,046
–
–
–
–
–
–
–
–
–
1,187
–
477
3,429
125
–
–
–
–
143
61
–
–
–
–
–
–
–
–
2
216
7
152
–
–
655
123
During the year ended March 31, 2022, tax- free bonds and non-convertible debentures of ₹ 576 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
₹ 965 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 measured at fair value on a recurring basis as at March 31, 2021 was as follows :
Particulars
Assets
Investments in liquid mutual funds (Refer to Note 2.5)
Investments in tax-free bonds (Refer to Note 2.5)
Investments in government bonds (Refer to Note 2.5)
Investments in non-convertible debentures (Refer to Note 2.5)
Investment in government securities (Refer to Note 2.5)
Investments in equity instruments (Refer to Note 2.5)
Investments in preference securities (Refer to Note 2.5)
Investments in compulsorily convertible debentures (Refer to Note 2.5)
Other investments (Refer to Note 2.5)
Derivative financial instruments – gain on outstanding foreign exchange forward
and options contracts (Refer to Note 2.7)
in ₹ crore
As at March
31, 2021
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
1,500
2,513
23
4,827
5,467
2
176
7
74
188
1,500
1,352
23
4,532
5,467
–
–
–
–
–
–
1,161
–
295
–
–
–
–
–
188
–
–
–
–
–
2
176
7
74
–
292
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward
and options contracts (Refer to Note 2.13)
Financial liability under option arrangements (Refer to Note 2.13)
Liability towards contingent consideration (Refer to Note 2.13)(1)
(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5% .
As at March
31, 2021
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
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.
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.
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, tax-free bonds, 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.
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.
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 intercompany
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, 2022 is as follows :
Particulars
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
in ₹ crore
Total
Net financial assets
Net financial liabilities
Total
18,224
(9,205)
9,019
4,976
(3,158)
1,818
1,510
(666)
844
1,350
(975)
375
2,115
28,175
(1,806)
(15,810)
309
12,365
The foreign currency risk from financial assets and liabilities as at March 31, 2021 was as follows :
Particulars
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
in ₹ crore
Total
Net financial assets
Net financial liabilities
Total
15,647
(6,997)
8,650
3,407
(2,570)
837
1,324
(622)
702
1,216
(802)
414
1,696
23,290
(1,368)
(12,359)
328
10,931
293
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Sensitivity analysis between Indian rupee and US Dollar
Particulars
Impact on the Group’s incremental operating margins
Year ended March 31,
2022
0.46%
2021
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 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
As at March 31, 2022
As at March 31, 2021
In million
In ₹ crore
In million
In ₹ crore
Forward contracts
In Euro
Options contracts
In Australian Dollar
In Euro
In UK Pound Sterling
Other derivatives
Forward contracts
In Brazilian Real
In Canadian Dollar
In Chinese Yuan
In Czech Koruna
In Euro
In New Zealand Dollar
In Norwegian Krone
In Romanian Leu
In Singapore Dollar
In Swiss Franc
In US Dollar
In Philippine Peso
In United Kingdom Pound Sterling
In South African rand
Options contracts
In Euro
In US Dollar
Total forwards and options contracts
294
8
67
185
280
32
6
34
38
296
297
20
80
–
252
15
1,166
–
65
45
81
677
1,050
2,358
318
8
205
45
101
2,501
105
70
–
1,366
123
8,853
–
646
24
682
5,131
23,653
–
92
165
35
–
33
105
313
171
16
25
10
241
27
1,139
800
28
–
65
404
–
512
1,415
353
–
194
117
103
1,466
82
21
17
1,419
213
8,325
121
282
–
557
2,951
18,148
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
The foreign exchange forward and options 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,
2022
6,237
2021
6,159
12,444
8,074
4,972
23,653
3,915
18,148
During the year ended March 31, 2022 and March 31, 2021, 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, 2022 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 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, 2022 and March 31, 2021 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,
2022
2021
10
(15)
102
(126)
(113)
3
2
160
(9)
10
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, 2022
As at March 31, 2021
Derivative
financial asset
Derivative
financial liability
Derivative
financial asset
Derivative
financial liability
179
(36)
143
(97)
36
(61)
201
(13)
188
(69)
13
(56)
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 ₹ 22,698 crore and ₹ 19,294 crore
as at March 31, 2022 and March 31, 2021, respectively, and
unbilled revenues amounting to ₹ 12,509 crore and ₹ 8,121 crore
as at March 31, 2022 and March 31, 2021, respectively. Trade
receivables and unbilled revenues are typically unsecured and
are derived from revenues from customers majorly located
in the US and Europe. 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.
295
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
The details in respect of percentage of revenues generated from
the top five customers and top 10 customers are as follows :
Days sales outstanding was 67 days and 71 days as of March 31,
2022 and March 31, 2021, respectively.
Particulars
Year ended March 31,
in %
Revenue from top 5 customers
Revenue from top 10 customers
Credit risk exposure
2022
11.4
19.3
2021
11.0
18.1
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, 2022 and March 31, 2021 is ₹ 143 crore and ₹ 184
crore, respectively.
The movement in credit loss allowance on customer
balance is as follows :
in ₹ crore
Credit risk on cash and cash equivalents is limited as the Group
generally invest 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, tax-free bonds, 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.
Particulars
Year ended March 31,
Liquidity risk
Balance at the beginning
Impairment loss recognized /
(reversed), net
Amounts written off
Translation differences
Balance at the end
2022
752
143
(62)
25
858
2021
705
184
(123)
(14)
752
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
Particulars
Trade receivables
Unbilled revenues
In ₹ crore
As at March 31,
2022
22,698
12,509
2021
19,294
8,121
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, 2022, the Group had a working capital of
₹ 33,582 crore including cash and cash equivalents of ₹ 17,472
crore and current investments of ₹ 6,673 crore. 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, 2022 and March 31, 2021, the outstanding
compensated absences were ₹ 2,274 crore and ₹ 2,117 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, 2022 are as follows :
Less than 1 year
1-2 years
2-4 years
4-7 years
4,134
–
–
457
80
–
10
503
1,089
72
in ₹ crore
Total
4,134
15,095
655
25
39
–
132
Particulars
Trade payables
Other financial liabilities (excluding liability towards contingent
consideration) on an undiscounted basis (Refer to Note 2.13)
Financial liability under option arrangements
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)
13,539
–
68
296
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The details regarding the contractual maturities of significant financial liabilities as at March 31, 2021 were as follows :
Particulars
Trade payables
Other financial liabilities (excluding liability towards contingent
consideration) (Refer to Note 2.13)
Financial liability under option arrangements
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)
2.12 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
Capital redemption reserve
In accordance with Section 69 of the Indian Companies Act, 2013,
the Company creates a capital redemption reserve equal to the
nominal value of the shares bought back as an appropriation
from the general reserve.
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. Amounts have been utilized for
bonus issue and share buyback from share premium account.
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 the exercise
of stock options and transferred to the 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 Income-tax Act, 1961. The reserve
Less than 1 year
1-2 years
2-4 years
4-7 years
2,645
9,239
–
76
–
411
615
67
–
197
78
38
in ₹ crore
Total
2,645
9,877
693
–
30
–
–
181
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.
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 Rupee 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.
2.12.1 Equity share capital
Particulars
Authorized
in ₹ crore, except as otherwise stated
As at March 31,
2022
2021
Equity shares, ₹ 5 par value
4,80,00,00,000 (4,80,00,00,000) equity
shares
Issued, subscribed and paid-up
Equity shares, ₹ 5 par value(1)
4,19,30,12,929 (4,24,51,46,114) equity
shares fully paid-up(2)
2,400
2,400
2,098
2,124
2,098
2,124
Note : Forfeited shares amounted to ₹ 1,500 (₹ 1,500).
(1) Refer to Note 2.23 for details of basic and diluted shares.
(2) Net of treasury shares 1,37,25,712 (1,55,14,732)
297
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
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.
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,
2022
Bonus issue
The Company has allotted 2,18,41,91,490 fully-paid-up shares
of face value ₹ 5 each during the quarter ended September 30,
2018, pursuant to the bonus issue approved by the shareholders
through postal ballot. The bonus shares were issued by
capitalization of profits transferred from the general reserve.
A bonus share of one equity share for every equity share held,
and a bonus issue, viz., a stock dividend of one American
Depositary Share (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. Options granted under the stock option plan have
been adjusted for bonus shares, wherever appropriate.
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.
Buyback completed in September 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 (AGM).
The shareholders approved the proposal of buyback of equity
shares recommended by its Board of Directors in the AGM
held on June 19, 2021.
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 June 25, 2021 and
was completed on September 8, 2021. During this buyback
period, the Company had purchased and extinguished a total of
5,58,07,337 equity shares from the stock exchange at a volume
weighted average buyback price of ₹ 1,648.53 per equity share
comprising 1.31% of the pre-buyback paid-up equity share
capital of the Company. The buyback resulted in a cash outflow
of ₹ 9,200 crore (excluding transaction costs and tax on buyback).
The Company funded the buyback from its free reserves,
including Securities Premium, as explained in Section 68 of the
Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2022, the Company has created a capital redemption
reserve of ₹ 28 crore equal to the nominal value of the above
shares bought back as an appropriation from the 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 at March 31, 2022, 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.
2.12.2 Shareholding of promoters
The details of the shares held by promoters as at March 31, 2022 are as follows :
Promoter name
Sudha Gopalakrishnan
Rohan Murty
S. Gopalakrishnan
Nandan M. Nilekani
Akshata Murty
Asha Dinesh
298
No. of shares % of total shares % change during the year
9,53,57,000
6,08,12,892
4,18,53,808
4,07,83,162
3,89,57,096
3,85,79,304
2.27
1.45
0.99
0.97
0.93
0.92
–
–
–
–
–
–
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Promoter name
Sudha N. Murty
Rohini Nilekani
Dinesh Krishnaswamy
Shreyas Shibulal
N. R. Narayana Murthy
Nihar Nilekani
Janhavi Nilekani
Kumari Shibulal
Deeksha Dinesh
Divya Dinesh
Meghana Gopalakrishnan
Shruti Shibulal
S. D. Shibulal
Promoters Group
Gaurav Manchanda
Milan Shibulal Manchanda
Nikita Shibulal Manchanda
Bhairavi Madhusudhan Shibulal
Shray Chandra
Tanush Nilekani Chandra
No. of shares % of total shares % change during the year
3,45,50,626
3,43,35,092
3,24,79,590
2,37,04,350
1,66,45,638
1,26,77,752
85,89,721
52,48,965
76,46,684
76,46,684
48,34,928
27,37,538
58,14,733
1,37,36,226
69,67,934
69,67,934
66,79,240
7,19,424
33,56,017
0.82
0.82
0.77
0.56
0.40
0.30
0.20
0.12
0.18
0.18
0.11
0.07
0.14
0.33
0.17
0.17
0.16
0.02
0.08
–
–
–
(0.71)
–
–
(27.74)
(41.00)
–
–
–
–
168.36
–
(50.00)
–
2.61
–
331.59
The percentage shareholding above has been computed considering the outstanding number of shares of 4,20,67,38,641 as at March 31, 2022.
During the year ended March 31, 2022, on account of the final
dividend for fiscal 2021 and interim dividend for fiscal 2022,
the Company has incurred a net cash outflow of `12,655 crore
(excluding dividend paid on treasury shares).
The Board of Directors, in their meeting on April 13, 2022,
recommended a final dividend of ₹ 16 per equity share for the
financial year ended March 31, 2022. This payment is subject to
the approval of shareholders in the AGM of the Company to be
held on June 25, 2022 and if approved, would result in a net cash
outflow of approximately ₹ 6,709 crore (excluding dividend paid
on treasury shares).
2.12.3 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.
Companies are required to pay/distribute dividend after
deducting applicable withholding income taxes. The
remittance of dividends outside India is governed by Indian
law on foreign exchange and is also subject to withholding tax
at applicable rates.
The amount of per share dividend recognized as distribution
to equity shareholders in accordance with the Companies Act,
2013 is as follows :
Particulars
Year ended March 31,
in ₹
Final dividend for fiscal 2021
Interim dividend for fiscal 2022
Final dividend for fiscal 2020
Interim dividend for fiscal 2021
2022
15.00
15.00
–
–
2021
–
–
9.50
12.00
299
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The details of shareholders holding more than 5% shares as at March 31, 2022 and March 31, 2021 are as follows :
Name of the shareholder
As at March 31, 2022
As at March 31, 2021
Number of shares
% held Number of shares
% held
Deutsche Bank Trust Company Americas (Depository of ADRs – legal
ownership)
Life Insurance Corporation of India
66,63,70,669
24,33,47,641
15.84
5.78
73,24,89,890
25,00,63,497
17.19
5.87
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2022 and March 31, 2021 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, 2022
As at March 31, 2021
Number of shares
Amount Number of shares
Amount
4,24,51,46,114
2,124
4,24,07,53,210
2,122
36,74,152
5,58,07,337
2
28
43,92,904
–
2
–
4,19,30,12,929
2,098
4,24,51,46,114
2,124
2.12.4 Employee Stock Option Plan (ESOP)
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 Plan as at
March 31, 2016). The Company expects to grant the instruments
under the 2015 Plan over the period of 4 to 7 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 1,37,25,712 and 1,55,14,732 shares as at
March 31, 2022 and March 31, 2021, 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,
2022 and March 31, 2021.
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 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 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 maximum of three
years from the grant date.
300
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The summary of grants during the years ended March 31, 2022 and March 31, 2021 is as follows :
Particulars
Equity-settled RSUs
Key Managerial Personnel (KMP)
Employees other than KMP
Cash-settled RSUs
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 18,340 RSUs was made effective
February 1, 2022 for fiscal 2022.
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. These RSUs will vest in line with
the employment agreement based on the achievement of certain
performance targets. Accordingly, 96,150 performance-based
RSUs were granted effective May 2, 2021.
Under the 2019 Plan
The Board, on April 14, 2021, based on the recommendations
of the nomination and remuneration committee, approved a
performance-based grant of RSUs amounting to ₹ 10 crore for
fiscal 2022 under the 2019 Plan. These RSUs will vest in line with
the employment agreement based on the achievement of certain
performance targets. Accordingly, 73,962 performance-based
RSUs were granted effective May 2, 2021.
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
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2022
2021
2022
2021
1,48,762
3,13,808
2,84,543
4,57,151
27,01,867
12,82,600
13,05,880
22,03,460
28,50,629 15,96,408 15,90,423 26,60,611
–
–
–
–
–
–
–
–
49,960
1,15,250
49,960
1,15,250
28,50,629 15,96,408 16,40,383 27,75,861
Other KMP
Under the 2015 Plan
On April 14, 2021, based on the recommendations of the
nomination and remuneration committee, in accordance with
employment agreement, the Board approved performance-
based grant of 5,547 RSUs to a KMP under the 2015 Plan. The
grants were made effective May 2, 2021. The performance-
based RSUs will vest over three years based on certain
performance targets.
On January 12, 2022, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grant of 9,876 RSUs to a KMP under the 2015 Plan.
The grants were made effective February 1, 2022. These RSUs will
vest over four years.
On March 31, 2022, based on the recommendations of the
nomination and remuneration committee, the Board approved
time-based grant of 1,54,630 RSUs to other KMPs under the 2015
Plan. The grants were made effective March 31, 2022. These RSUs
will vest over four years.
Under the 2019 Plan
On March 31, 2022, based on the recommendations of the
nomination and remuneration committee, the Board approved
performance-based grant of 74,800 RSUs to other KMPs under
the 2019 Plan. The grants were made effective March 31, 2022.
These RSUs will vest over three years based on achievement of
certain performance targets.
in ₹ crore
Year ended March 31,
2022
2021
65
350
415
22
76
257
333
80
301
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Share-based payment arrangements that were modified during the year ended March 31, 2021 were as follows :
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 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.
The activity in the 2015 and 2019 Plans for equity-settled, share-based payment transactions during the years ended March 31, 2022 and
March 31, 2021 is as follows :
Particulars
2015 Plan : RSUs
Outstanding at the beginning
Granted
Exercised
Modification to equity-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 options
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, 2022
Year ended March 31, 2021
Shares arising
out of options
Weighted average
exercise price (₹)
Shares arising
out of options
Weighted average
exercise price (₹)
80,47,240
15,90,423
25,69,983
–
8,34,705
62,32,975
6,53,775
10,49,456
–
3,48,612
–
–
7,00,844
7,00,844
30,50,573
28,50,629
7,55,557
1,86,707
49,58,938
6,92,638
4.52
5.00
4.07
–
4.63
4.82
4.51
535
–
529
–
–
557
557
5.00
5.00
5.00
5.00
5.00
5.00
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
During the years ended March 31, 2022 and March 31, 2021, the weighted average share price of options exercised under the 2015 Plan on
the date of exercise was ₹ 1,705 and ₹ 1,097, respectively.
During the years ended March 31, 2022 and March 31, 2021, the weighted average share price of options exercised under the 2019 Plan on
the date of exercise was ₹ 1,560 and 1,166, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 is as follows :
Range of exercise prices per
share (₹)
0 - 5 (RSU)
450 - 600 (ESOP)
302
2019 Plan – Options outstanding
2015 Plan – Options outstanding
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average
exercise price
(₹)
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average
exercise price
(₹)
49,58,938
–
1.43
–
5.00
-
62,32,975
7,00,844
1.47
0.65
4.82
557
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2021 was as follows :
Range of exercise prices per
share (₹)
2019 Plan – Options outstanding
2015 Plan – Options outstanding
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average
exercise price
(₹)
No. of shares
arising out of
options
Weighted
average
remaining
contractual life
Weighted
average
exercise price
(₹)
0 - 5 (RSU)
450 - 600 (ESOP)
30,50,573
–
1.48
–
5.00
–
80,47,240
10,49,456
1.67
1.83
4.52
535
As at March 31, 2022 and March 31, 2021, 2,65,561 and 3,87,088 cash-settled options were outstanding, respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹ 13 crore and ₹ 7 crore as at March 31, 2022 and March 31, 2021, 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 has 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
Fiscal 2022 – Equity
shares – RSU
Fiscal 2022 – ADS-
RSU
Fiscal 2021 – Equity
shares – RSU
Fiscal 2021 – ADS-
RSU
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)
1,791
5.00
20-35
1-4
2-3
4-6
1,548
24.45
0.07
25-36
1-4
2-3
1-3
20.82
1,253
5.00
30-35
1-4
2-3
4-5
1,124
18.46
0.07
30-36
1-4
2-3
0.1-0.3
16.19
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.
2.13 Other financial liabilities
Particulars
Non-current
Others
in ₹ crore
As at March 31,
2022
2021
Particulars
Current
Unpaid dividends (1)
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)(4)
8
946
92
655
56
580
–
569
97
693
86
69
Total non-current other financial
liabilities
2,337
1,514
As at March 31,
2022
2021
36
33
4,061
7,476
13
67
211
4,019
4,475
13
75
199
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
2,182
2,020
Foreign currency forward and
options contracts (2) (3)
61
56
303
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
As at March 31,
Capital creditors (1)
Other payables (1)(4)
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
Contingent consideration on
undiscounted basis
2022
431
1,299
2021
371
129
15,837
18,174
11,390
12,904
over by the Company from a customer as part of a transformation project
which is not considered as distinct goods or services and the control
related to the assets is not transferred to the Company in accordance
with Ind AS 115, Revenue from contract with customers. Accordingly, the
same has been considered as a reduction to the total contract value and
accounted as deferred contract cost. Further, as at March 31, 2022, the
Company has entered into a financing arrangement with a third party
for these assets for `895 crore, which has been considered as financial
liability. This includes `869 crore settled directly by the third party to the
customer on behalf of the Company and accordingly considered as non-
cash transaction.
15,061
9,877
2.14 Trade payables
836
910
Particulars
3
–
Trade payables
132
181
Total trade payables
in ₹ crore
As at March 31,
2022
4,134
4,134
2021
2,645
2,645
(4) Deferred contract cost in Note 2.10 includes technology assets taken
The trade payables ageing schedule for the years ended as on March 31, 2022 and March 31, 2021 is as follows :
Not due Outstanding for following periods from due date of payment
Total
Less than 1 year
1-2 years
2-3 years More than 3 years
in ₹ crore
3,299
2,386
3,299
2,386
835
246
835
246
–
4
–
4
–
4
–
4
–
5
–
5
4,134
2,645
4,134
2,645
in ₹ crore
Nature of
transactions
Transactions during
the year ended
March 31, 2022
Payables
Payables
–*
–*
Balance outstanding
as at March 31, 2022
Relationship with the
struck off company
–
–
Vendor
Vendor
in ₹ crore
Nature of
transactions
Transactions during
the year ended
March 31, 2021
Payables
Payables
–*
1
Balance outstanding
as at March 31, 2021
Relationship with the
struck off company
–
–
Vendor
Vendor
Particulars
Trade payables
Total trade payables
Relationship with struck off companies
Name of struck off company
Compulease Networks Private Limited
Evineon Technologies Private Limited
*Less than ₹ 1 crore
Name of struck off company
Compulease Networks Private Limited
Mysodet Private Limited
* Less than ₹ 1 crore
304
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2.15 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
Others
in ₹ crore
As at March 31,
2022
2021
–
64
367
9
11
451
364
57
324
17
1
763
6,324
4,050
Withholding taxes and others
2,834
2,170
Accrued defined benefit plan
liability
Deferred income - government
grants
Others
5
11
4
6
3
4
Total current other liabilities
Total other liabilities
9,178
9,629
6,233
6,996
2.16 Provisions
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. Provisions for estimated losses, if
any, on incomplete contracts are recorded in the period in which
such losses become probable based on the estimated efforts or
costs to complete 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.
Provision for post-sales client support and other provisions
Particulars
Current
Others
in ₹ crore
As at March 31,
2022
2021
Post-sales client support and
other provisions
Total provisions
975
975
713
713
The movement in the provision for post-sales client support 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, 2022
713
372
(180)
30
935
Provision for post-sales client support 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.
2.17 Income taxes
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 equity or 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
305
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Year ended March 31,
Effect of non-deductible expenses
Impact of change in tax rate
Others
Income tax expense
2022
162
(94)
(217)
7,964
2021
148
–
117
7,205
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2022 and March 31, 2021 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, 2022 and
March 31, 2021 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, 2022, Infosys’ US branch net assets amounted to
approximately ₹ 6,332 crore. As at March 31, 2022, the Company
has a deferred tax liability for Branch Profit Tax of ₹ 158 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 ₹ 9,618 crore and ₹ 9,670
crore as at March 31, 2022 and March 31, 2021, 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 ₹ 4,487 crore and ₹ 3,726 crore as at March
31, 2022 and March 31, 2021, 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.
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 equity.
Income tax expense in the Consolidated Statement of Profit
and Loss comprises :
Particulars
Year ended March 31,
in ₹ crore
Current taxes
Deferred taxes
Income tax expense
2022
7,811
153
7,964
2021
6,672
533
7,205
Income tax expense for the years ended March 31, 2022 and
March 31, 2021 includes reversal (net of provisions) of ₹ 268
crore and ₹ 348 crore, respectively. These reversals pertains to
prior periods 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 summarized below :
Particulars
Year ended March 31,
in ₹ crore
2022
30,110
34.94%
10,522
2021
26,628
34.94%
9,305
(2,949)
(2,569)
984
(268)
705
(348)
(52)
(34)
72
(196)
10
(129)
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
306
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The details of expiration of unused tax losses as at March 31,
2022 are as follows :
The details of income tax assets and income tax liabilities as at
March 31, 2022 and March 31, 2021 are as follows :
Year
2023
2024
2025
2026
2027
Thereafter
Total
in ₹ crore
As at
March 31, 2022
201
154
127
153
52
3,800
4,487
Particulars
As at March 31,
in ₹ crore
Income tax assets
Current income tax liabilities
Net current income tax assets /
(liabilities) at the end
2022
6,152
2,607
2021
5,811
2,146
3,545
3,665
The gross movement in the current income tax assets / (liabilities) for
the years ended March 31, 2022 and March 31, 2021 is as follows :
The details of expiration of unused tax losses as at March 31,
2021 were as follows :
Particulars
Year
2022
2023
2024
2025
2026
Thereafter
Total
in ₹ crore
As at
March 31, 2021
68
206
135
112
137
3,068
3,726
Net current income tax assets /
(liabilities) 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 assets /
(liabilities) at the end
in ₹ crore
Year ended March 31,
2022
2021
3,665
(7)
7,612
(7,811)
3,901
1
6,389
(6,672)
63
-
8
15
45
(3)
-
4
3,545
3,665
The movement in gross deferred income tax assets / (liabilities) (before set-off) for the year ended March 31, 2022 is as follows :
Particulars
Carrying
value as at
April 1, 2021
Changes
through profit
and loss
Addition
through business
combination
Changes
through
OCI
Translation
difference
Carrying value
as of March 31,
2022
in ₹ crore
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
255
166
42
217
497
121
355
(57)
31
(368)
(500)
(100)
14
10
(4)
32
9
308
29
17
62
(316)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
–
–
–
1
–
(1)
–
–
1
13
–
1
(2)
(18)
156
180
51
213
529
131
676
(25)
49
(308)
(834)
307
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Carrying
value as at
April 1, 2021
Changes
through profit
and loss
Addition
through business
combination
Changes
through
OCI
Translation
difference
Carrying value
as of March 31,
2022
SEZ Re-Investment Reserve
Others
Total deferred income tax assets /
(liabilities)
(613)
77
223
(239)
25
(153)
–
–
–
–
(12)
(9)
–
–
(5)
The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2021 was as follows :
(852)
90
56
in ₹ crore
Particulars
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
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)
244
136
52
197
433
111
377
162
20
(426)
(555)
(82)
107
776
12
30
(10)
20
62
11
(11)
(210)
13
78
38
(531)
(35)
(533)
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,
2022
2021
1,212
1,098
(1,156)
(875)
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
308
–
–
–
–
–
–
–
–
–
(23)
–
–
2
–
–
–
–
–
–
–
(9)
–
–
–
–
3
(21)
(6)
(1)
–
–
–
2
(1)
(11)
–
(2)
3
17
–
–
7
255
166
42
217
497
121
355
(57)
31
(368)
(500)
(613)
77
223
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.
The Company’s Advanced Pricing Arrangement (APA) with
the Internal Revenue Service (IRS) for the US branch's income
tax expired in March 2021. The Company has applied for
renewal of APA and currently, the US taxable income is based
on the Company’s best estimate determined based on the
expected value method.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 2.18 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 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 the 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
incomplete 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.
Certain cloud and infrastructure services contracts include
multiple elements which may be subject to other specific
accounting guidance, such as leasing guidance. These contracts
are accounted in accordance with such specific accounting
guidance. In such arrangements where the Group is able to
determine that hardware and services are distinct performance
obligations, it allocates the consideration to these performance
obligations on a relative standalone selling price basis. In the
absence of standalone selling price, the Group uses the expected
cost-plus margin approach in estimating the standalone
selling price. When such arrangements are considered as a
single performance obligation, revenue is recognized over
the period and measure of progress is determined based on
promise in the contract.
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
309
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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 good 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; (b) generate
or enhance resources of the Group that will be used in
satisfying the performance obligation in the future; and (c) are
expected to be recovered.
Capitalized contract costs relating to upfront payments to
customers are amortized to revenue and other capitalized costs
are amortized to expenses over the respective contract life
For the years ended March 31, 2022 and March 31, 2021 :
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates. Capitalized costs
are monitored regularly for impairment. Impairment losses are
recorded when present value of projected remaining operating
cash flows is not sufficient to recover the carrying amount of
the capitalized costs.
The Group presents revenues net of indirect taxes in its
Consolidated Statement of Profit and Loss.
Revenue from operations for the years ended March 31, 2022 and
March 31, 2021 are as follows :
Particulars
in ₹ crore
Year ended March 31,
2022
2021
Revenue from software services
1,13,536
93,387
Revenue from products and platforms
Total revenue from operations
8,105
1,21,641
7,085
1,00,472
The Group has evaluated the impact of COVID-19 pandemic
resulting on (i) the possibility of constraints in our ability 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 pandemic is not significant and based on
these estimates. Due to the nature of the COVID-19 pandemic,
the Group will continue 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.
Particulars
Financial
Services (1)
Retail(2)
Communication
(3)
Energy ,
Utilities,
Resources
and Services
Manufacturing Hi-Tech
Life
Sciences(4)
Others (5)
Total
in ₹ crore
Revenues by
geography*
North America
Europe
India
Rest of the world
24,410
19,517
6,746
6,415
1,933
1,568
5,813
11,989
9,722
4,759
4,165
90
61
896
8,474
6,791
3,598
2,893
315
229
2,795
7,430
6,935
5,766
4,481
153
33
1,135
6,303
5,126
6,606
3,962
69
53
358
9,342
8,052
224
164
412
294
58
6,173
4,728
2,203
2,013
27
16
114
937
769
227
210
586
645
1,700
75,058
61,640
30,129
24,303
3,585
2,899
12,869
Total
38,902 17,734
15,182
14,484
13,336 10,036
8,517
3,450 1,21,641
5,083
797
2,715
1,090
306
50
113
1,476
11,630
32,583
14,745
12,628
12,539
9,447
8,560
6,870
3,100 1,00,472
310
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Financial
Services (1)
Retail(2)
Communication
(3)
Manufacturing Hi-Tech
Life
Sciences(4)
Others (5)
Total
Energy ,
Utilities,
Resources
and Services
Revenue by offerings
Digital
Core
Total
20,391
10,857
15,547
7,695
18,511
6,877
17,036
7,050
38,902 17,734
32,583
14,745
9,310
6,478
5,872
6,150
15,182
12,628
8,412
6,077
6,072
6,462
14,484
12,539
8,240
5,817
4,567
4,160
5,096
4,219
4,925
3,020
3,592
1,452
69,404
1,143
48,687
1,998
52,237
4,880
4,400
3,850
1,957
51,785
13,336 10,036
8,517
3,450 1,21,641
9,447
8,560
6,870
3,100 1,00,472
(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 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.
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
that 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 year ended March 31, 2022 and March 31, 2021
is approximately 53%.
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 the 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 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 the
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, 2022 and March 31, 2021, the
Company recognized revenue of ₹ 3,551 crore and ₹ 2,489 crore
arising from opening unearned revenue as of April 1, 2021 and
April 1, 2020, respectively.
During the years ended March 31, 2022 and March 31, 2021,
₹ 4,047 crore and ₹ 3,822 crore of unbilled revenue pertaining
to other fixed-price and fixed-time frame contracts as of April
1, 2021 and April 1, 2020, respectively, have been reclassified
to trade receivables upon billing to customers on the
completion of milestones.
311
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
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 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, 2022, other
than those meeting the exclusion criteria mentioned above,
is ₹ 74,254 crore. Out of this, the Group expects to recognize
revenue of around 55% 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, 2021 is ₹ 69,890 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.
2.19 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
312
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.
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, 2022 and March 31,
2021 is as follows :
Particulars
Interest income on financial assets
carried at amortized cost
Tax-free bonds and government
bonds
Deposit with bank and others
in ₹ crore
Year ended March 31,
2022
2021
152
851
143
1,052
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Particulars
Year ended March 31,
Particulars
Year ended March 31,
Interest income on financial assets
carried at fair value through other
comprehensive income
Non-convertible debentures
and certificates of deposit and
government securities
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
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
2.20 Expenses
2022
2021
642
409
–
177
1
–
11
74
82
4
88
556
186
198
2,295
(346)
216
2,201
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*
Others
2022
164
78
11
2021
134
39
6
170
190
426
352
3,424
439
231
3,286
* Figures for the year ended March 31, 2021 include ₹ 37 crore which the
Company intends to spend in the future relating to and in addition to the
amounts spent in the prior years.
Consequent to the Companies (Corporate Social Responsibility
Policy) Amendment Rules, 2021 (“the Rules”), the Company was
required to transfer its CSR capital assets created prior to January
2021. Towards this, the Company had incorporated a controlled
subsidiary ‘Infosys Green Forum’ under Section 8 of the
Companies Act, 2013. During the year ended March 31, 2022, the
Company has completed the transfer of assets upon obtaining
the required approvals from regulatory authorities, as applicable.
in ₹ crore
2.21 Leases
Accounting policy
Particulars
Year ended March 31,
The Group as a lessee
Employee benefit expenses
Salaries including bonus
61,522
53,616
2022
2021
Contribution to provident and
other funds
Share-based payments to
employees (Refer to Note 2.12)
Staff welfare
1,617
1,337
415
432
333
255
63,986
55,541
Cost of software packages and others
For own use
1,417
1,221
Third-party items bought for
service delivery to clients
5,394
6,811
3,002
4,223
Other expenses
Repairs and maintenance
1,066
1,300
Power and fuel
Brand and marketing
Short-term leases (Refer to Note
2.21)
Rates and taxes
Consumables
132
553
61
265
146
143
355
82
256
111
The Group’s lease asset classes primarily consist of leases for land,
buildings, vehicles 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.
As a lessee, the Group determines 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
313
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
leasehold improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance
of the underlying asset to Infosys’s 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.
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 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.
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
right-of-use 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.
The changes in the carrying value of ROU assets for the year ended March 31, 2022 are as follows :
Particulars
Balance as of April 1, 2021
Additions(1)
Deletions
Depreciation
Translation difference
Balance as of March 31, 2022
Category of ROU asset
Buildings
Vehicles Computers
3,984
449
(85)
(657)
20
3,711
19
6
–
(10)
1
16
161
459
(47)
(108)
3
468
Land
630
–
–
(6)
4
628
(1) Net of adjustments on account of modifications and lease incentives
The changes in the carrying value of ROU assets for the year ended March 31, 2021 were as follows :
Particulars
Balance as of April 1, 2020
Additions(1)
Deletions
Depreciation
Translation difference
Balance as of March 31, 2021
(1) Net of adjustments on account of modifications and lease incentives
314
Category of ROU asset
Buildings
Vehicles Computers
3,485
1,234
(147)
(591)
3
3,984
15
13
–
(11)
2
19
42
140
–
(26)
5
161
Land
626
7
–
(7)
4
630
in ₹ crore
Total
4,794
914
(132)
(781)
28
4,823
in ₹ crore
Total
4,168
1,394
(147)
(635)
14
4,794
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The break-up of current and non-current lease liabilities as at
March 31, 2022 and March 31, 2021 is as follows :
The movement in the net investment in sublease in ROU
asset during the years ended March 31, 2022 and March 31,
2021 is as follows :
Particulars
As at March 31,
in ₹ crore
Current lease liabilities
Non-current lease liabilities
Total
2022
872
4,602
5,474
2021
738
4,587
5,325
The movement in lease liabilities during the years ended March
31, 2022 and March 31, 2021 is as follows :
Particulars
Year ended March 31,
in ₹ crore
Balance at the beginning
Additions
Deletions
Finance cost accrued during the
period
Payment of lease liabilities
Translation difference
Balance at the end
2022
5,325
933
(134)
175
(956)
131
5,474
2021
4,633
1,494
(168)
176
(821)
11
5,325
The details regarding the contractual maturities of lease liabilities
as at March 31, 2022 and March 31, 2021 on an undiscounted
basis are as follows :
Particulars
As at March 31,
in ₹ crore
Less than one year
One to five years
More than five years
Total
2022
991
3,244
1,972
6,207
2021
867
3,011
2,239
6,117
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 ₹ 61 crore
and ₹ 82 crore for the years ended March 31, 2022 and March
31, 2021, respectively.
The aggregate depreciation on ROU assets has been included
under depreciation and amortization expense in the
Consolidated Statement of Profit and Loss.
Particulars
Year ended March 31,
in ₹ crore
Balance at the beginning
Additions
Interest income accrued during the
period
Lease receipts
Translation difference
Balance at the end
2022
388
5
13
(48)
14
372
2021
433
3
14
(49)
(13)
388
The details regarding the contractual maturities of net
investment in sublease of ROU asset as at March 31, 2022 and
March 31, 2021 on an undiscounted basis are as follows :
Particulars
As At March 31,
in ₹ crore
2022
55
235
126
416
2021
51
218
179
448
Less than one year
One to five years
More than five years
Total
2.22 Employee benefits
Accounting policy
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
(the 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.
The Group 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 and / or for a lump-
sum payment as set out in the 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 external
actuary, at each Balance Sheet date, using the projected unit
credit method. These defined benefit plans expose the Group to
315
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 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.
2.22.1 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, 2022 and March 31, 2021 is as follows :
Particulars
in ₹ crore
As at March 31,
2022
2021
Change in benefit obligations
Benefit obligations at the beginning
1,624
Service cost
Interest expense
Transfer of obligation
Remeasurements – Actuarial (gains)
/ losses
Benefits paid
Translation difference
219
89
–
81
(291)
–
1,402
207
84
3
30
(98)
(4)
Benefit obligations at the end
1,722
1,624
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
1,610
96
24
267
(286)
1,711
(11)
1,522
92
11
78
(93)
1,610
(14)
The amounts for the years ended March 31, 2022 and March 31, 2021
recognized in the Consolidated 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,
2022
219
(7)
212
2021
207
(8)
199
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
316
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation The amounts for the years ended March 31, 2022 and March 31, 2021
recognized in the Consolidated Statement of Other Comprehensive
Income are as follows :
in ₹ crore
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
Particulars
Year ended March 31,
long-term trend of employee turnover in the Company.
2022
2021
The sensitivity of significant assumptions used for valuation of
defined benefit obligation is as follows :
Remeasurements of the net defined
benefit liability / (asset)
Actuarial (gains) / losses
81
30
(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
(24)
57
(11)
19
in ₹ crore
Year ended March 31,
2022
2021
–
(46)
127
81
–
14
16
30
The weighted-average assumptions used to determine
benefit obligations as at March 31, 2022 and March 31,
2021 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,
2022
6.5%
2021
6.1%
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, 2022 and
March 31, 2021 are as follows :
in %
Particulars
Year ended March 31,
Discount rate
Weighted average rate of increase in
compensation levels
2022
6.1
6.0
2021
6.2
6.0
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-
in ₹ crore
Impact from percentage point increase / decrease
in
As at March
31, 2022
Discount rate
Weighted average rate of increase in compensation
levels
81
73
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, 2022 and March 31, 2021, the plan assets have been primarily
invested in insurer-managed funds.
Actual return on assets for the years ended March 31, 2022 and
March 31, 2021 were ₹ 120 crore and ₹ 103 crore, respectively.
The Group expects to contribute ₹ 226 crore to the gratuity
trusts during fiscal 2023.
The maturity profile of defined benefit obligation is as follows :
Within 1 year
1-2 year
2-3 year
3-4 year
4-5 year
5-10 years
in ₹ crore
264
268
280
285
324
1,697
The Group operates defined benefit pension plan in certain
overseas jurisdictions, in accordance with local laws. As at March
31, 2022, and March 31, 2021, the defined benefit obligation
(DBO) is ₹ 926 crore and ₹ 814 crore, fair value of plan assets is
₹ 846 crore and ₹ 690 crore resulting in recognition of a net DBO
of ₹ 80 crore and ₹ 124 crore, respectively.
2.22.2 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.
317
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
The funded status of the defined benefit provident fund
plan of Infosys Limited and the amounts recognized in the
Group’s financial statements as at March 31, 2022 and March 31,
2021 is as follows :
Particulars
Remaining term to maturity of
portfolio
As at March 31,
2022
2021
6 years
6 years
in ₹ crore
Expected guaranteed interest rate
8.10%
8.50%
Particulars
Change in benefit obligations
Benefit obligations at the beginning
Service cost
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
As at March 31,
2022
2021
8,287
656
1,153
516
118
(1,426)
9,304
7,366
423
816
606
(26)
(898)
8,287
(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 breakup of the plan assets into various categories as at March
31, 2022 and March 31, 2021 is as follows :
Particulars
As at March 31,
Central and State government bonds
Public sector undertakings and
private sector bonds
Others
2022
57%
37%
6%
2021
54%
40%
6%
8,140
507
7,117
596
The asset allocation for plan assets is determined based on the
investment criteria prescribed under the relevant regulations.
18
1,819
(1,426)
9,058
(246)
125
1,200
(898)
8,140
(147)
As at March 31, 2022 the defined benefit obligation would be
affected by approximately ₹ 88 crore and ₹ 114 on account
of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Group contributed ₹ 882 crore and ₹ 665 crore to the
provident fund during the years ended March 31, 2022 and
March 31, 2021, 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.
The amounts for the years ended March 31, 2022 and March
31, 2021 recognized in the Consolidated Statement of Other
Comprehensive Income are as follows :
Particulars
Remeasurements of the net defined
benefit liability / (asset)
in ₹ crore
2.22.3 Superannuation
Year ended March 31,
2022
2021
The Group contributed ₹ 364 crore and ₹ 260 crore during the
years ended March 31, 2022 and March 31, 2021, respectively, and
the same has been recognized in the Consolidated Statement of
Profit and Loss under the head employee benefit expense.
Actuarial (gains) / losses
118
(26)
2.22.4 Employee benefit costs
(Return) / loss on plan assets
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)
(18)
100
(125)
(151)
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
As at March 31,
2022
2021
6.50%
7.70%
6.10%
8.00%
318
Particulars
Year ended March 31,
in ₹ crore
Salaries and bonus(1)
Defined contribution plans
Defined benefit plans
2022
2021
62,483
54,274
478
358
1,025
63,986
909
55,541
(1)
Includes employee stock compensation expense of ₹ 415 crore and ₹ 333
crore for the years ended March 31, 2022 and March 31, 2021, respectively
Refer to Note 2.12.
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2.23 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 Group 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 Group 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
Year ended March 31,
2022
2021
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
4,20,95,46,724
4,24,24,16,665
89,78,410
83,15,802
4,21,85,25,134 4,25,07,32,467
For the years ended March 31, 2022 and March 31, 2021, there
were no options to purchase equity shares which had an
anti-dilutive effect.
2.24 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.
Particulars
Contingent liabilities
Claims against the Group, not
acknowledged as debts(1)
[Amount paid to statutory authorities
₹ 6,006 crore (₹ 6,105 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*
in ₹ crore
As at March 31,
2022
2021
4,641
4,061
1,245
28
733
42
* Uncalled capital pertaining to investments
(1) As at March 31, 2022, claims against the Group not acknowledged as debts
in respect of income tax matters amounted to ₹ 4,001 crore. 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.
Amount paid to statutory authorities against the tax claims amounted to
₹ 5,996 crore and ₹ 6,095 crore as at March 31, 2022 and March 31, 2021,
respectively.
(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, based on currently available
information, 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.
319
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
2.25 Related party transactions
List of related parties :
Name of subsidiaries
Infosys Technologies (China) Co. Limited (Infosys China)(1)
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)(1)
Infosys Technologies (Sweden) AB (Infosys Sweden)(1)
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)(1)
Infosys Nova Holdings LLC. (Infosys Nova)(1)
EdgeVerve Systems Limited (EdgeVerve)(1)
Infosys Austria GmbH(1)
Skava Systems Private Limited (Skava Systems)(1) (41)
Kallidus Inc, (Kallidus)(42)
Infosys Chile SpA(1)
Infosys Arabia Limited(2)
Infosys Consulting Ltda.(1)
Infosys CIS LLC(15)
Infosys Luxembourg S.a.r.l(1)
Infosys Americas Inc., (Infosys Americas)(1)
Infosys Public Services, Inc. USA (Infosys Public Services)(1)
Infosys Canada Public Services Inc(20)(53)
Infosys BPM Limited(1)(61)
Infosys (Czech Republic) Limited s.r.o.(3)
Infosys Poland Sp z.o.o(3)
Infosys McCamish Systems LLC(3)
Portland Group Pty Ltd(3)
Infosys BPO Americas LLC.(3)
Infosys Consulting Holding AG (Infosys Lodestone)(1)
Infosys Management Consulting Pty Limited(4)
Infosys Consulting AG(4)
Infosys Consulting GmbH(4)
Infosys Consulting S.R.L.(1)
Infosys Consulting SAS(4)
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.)(4)(52)
Czech Republic
Infosys Consulting (Shanghai) Co., Ltd.(4)(48)
Infy Consulting Company Ltd(4)
Infy Consulting B.V.(4)
Infosys Consulting Sp. z.o.o(29)
Lodestone Management Consultants Portugal, Unipessoal, Lda.(4)(34)
Infosys Consulting S.R.L.(4)
Infosys Consulting (Belgium) NV(5)
Panaya Inc. (Panaya)(1)
Panaya Ltd.(6)
Panaya GmbH(6)
320
China
UK
The Netherlands
Poland
Portugal
Argentina
Belgium
US
Israel
Germany
Country
Holdings as at March 31,
2022
2021
in %
China
Mexico
Sweden
China
US
India
Austria
India
US
Chile
Saudi Arabia
Brazil
Russia
Luxembourg
US
US
Canada
India
Czech Republic
Poland
US
Australia
US
Switzerland
Australia
Switzerland
Germany
Romania
France
100
100
100
100
100
100
100
100
–
100
70
100
–
100
100
100
–
100
100
100
100
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
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
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Name of subsidiaries
Country
Holdings as at March 31,
Brilliant Basics Holdings Limited (Brilliant Basics)(1)(41)
Brilliant Basics Limited(7)(41)
Brilliant Basics (MENA) DMCC(7)(21)
Infosys Consulting Pte. Ltd. (Infosys Singapore)(1)
Infosys Middle East FZ-LLC(8)
Fluido Oy(8)
Fluido Sweden AB (Extero)(11)
Fluido Norway A/S(11)
Fluido Denmark A/S(11)
Fluido Slovakia s.r.o(11)
Fluido Newco AB(11)(36)
Infosys Compaz Pte. Ltd(9)
Infosys South Africa (Pty) Ltd(8)
WongDoody Holding Company Inc. (WongDoody)(1)(54)
WDW Communications, Inc(10)(55)
WongDoody, Inc(10)(56)
HIPUS Co., Ltd(9)
Stater N.V.(9)
Stater Nederland B.V.(12)
Stater Duitsland B.V.(12)(38)
Stater XXL B.V.(12)
HypoCasso B.V.(12)
Stater Participations B.V.(12)
Stater Deutschland Verwaltungs-GmbH(13)(37)
Stater Deutschland GmbH & Co. KG(13)(37)
Stater Belgium N.V./S.A.(14)(39)
Stater Gmbh(12)(46)
Outbox systems Inc. dba Simplus (US)(16)
Simplus North America Inc.(17)(45)
Simplus ANZ Pty Ltd.(17)
Simplus Australia Pty Ltd(18)
Sqware Peg Digital Pty Ltd(19)(49)
Simplus Philippines, Inc.(17)
Simplus Europe, Ltd.(17)(47)
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)(22)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd)(23)
Infosys Limited Bulgaria EOOD(1)(24)
Kaleidoscope Animations, Inc.(27)
Kaleidoscope Prototyping LLC(28)
GuideVision s.r.o.(25)
GuideVision Deutschland GmbH(26)
GuideVision Suomi Oy(26)
GuideVision Magyarország Kft(26)
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
Germany
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Bulgaria
US
US
Czech Republic
Germany
Finland
Hungary
2022
100
100
–
100
100
100
100
100
100
100
–
60
100
–
–
100
81
75
75
–
75
75
75
–
–
75
75
100
–
100
100
–
100
–
100
100
100
100
100
100
100
100
100
2021
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
100
100
100
100
100
100
100
321
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Name of subsidiaries
GuideVision Polska SP.Z.O.O(26)
GuideVision UK Ltd(26)
Blue Acorn iCi Inc (formerly Beringer Commerce Inc)(30)
Beringer Capital Digital Group Inc(30)(59)
Mediotype LLC(31)(59)
Beringer Commerce Holdings LLC(31)(59)
SureSource LLC(32)(57)
Blue Acorn LLC(32)(57)
Simply Commerce LLC(32)(57)
iCiDIGITAL LLC(33)(58)
Infosys BPM UK Limited(3)(35)
Infosys Turkey Bilgi Teknolojikeri Limited Sirketi(1)(40)
Infosys Germany Holding Gmbh(1)(43)
Infosys Automotive and Mobility GmbH & Co. KG(1)(44)
Infosys Green Forum(1)(50)
Country
Holdings as at March 31,
2022
2021
Poland
UK
US
US
US
US
US
US
US
US
UK
Turkey
Germany
Germany
India
100
100
100
–
–
–
–
–
–
–
–
100
100
100
100
100
–
100
100
100
100
100
100
100
100
100
100
100
–
–
100
–
–
–
–
–
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.)(51)
Malaysia
Infosys Business Solutions LLC(1)(60)
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))(62)
Qatar
Germany
(1) Wholly-owned subsidiary of Infosys Limited
(27) On October 9, 2020, Infosys Nova Holdings LLC, acquired 100% voting
(2) Majority-owned and controlled subsidiary of Infosys Limited
(3) Wholly-owned subsidiary of Infosys BPM Limited
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
(5) Majority-owned and controlled subsidiary of Infosys Consulting Holding
AG
(6) Wholly-owned subsidiary of Panaya Inc.
(7) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(8) Wholly-owned subsidiary of Infosys Consulting Pte. Ltd.
(9) Majority-owned and controlled subsidiary of Infosys Consulting Pte. Ltd.
(10) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody)
(11) Wholly-owned subsidiary of Fluido Oy
(12) Wholly-owned subsidiary of Stater N.V
(13) Wholly-owned subsidiary of Stater Duitsland B.V.
(14) Majority-owned and controlled subsidiary of Stater Participations B.V.
(15) Liquidated effective January 28, 2021.
(16) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(17) Wholly-owned subsidiary of Outbox Systems Inc.
(18) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(19) Wholly-owned subsidiary of Simplus Australia Pty Ltd
(20) Wholly-owned subsidiary of Infosys Public Services, Inc.
(21) Liquidated effective July 17, 2020
(22) On June 1, 2020, Fluido Oy, acquired 100% of the voting interests in
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)
(23) Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus UK,
Ltd)
(24) Incorporated effective September 11, 2020.
(25) On October 1, 2020, Infy Consulting Company Limited acquired 100% of
voting interests in GuideVision s.r.o
(26) Wholly-owned subsidiary of GuideVision s.r.o.
322
interest in Kaleidoscope Animations, Inc.
(28) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(29) Merged with Infosys Poland Sp. z.o.o, effective October 21, 2020
(30) On October 27, 2020, Infosys Nova Holding LLC, a wholly-owned
subsidiary of Infosys Limited, acquired 100% voting interest in Blue Acorn
iCi Inc (formerly Beringer Commerce Inc) and Beringer Capital Digital Group
Inc
(31) Wholly-owned subsidiary of Blue Acorn iCi Inc
(32) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(33) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(34) Liquidated effective November 19,2020
(35) Incorporated, effective December 9, 2020
(36) Merged into Fluido Sweden AB (Extero), effective December 18, 2020
(37) Merged into Stater Duitsland B.V., effective December 18, 2020
(38) Merged with Stater N.V., effective December 23, 2020
(39) On December 29, 2020, Stater Participation B.V acquired non-controlling
interest of 28.01% voting interests in Stater Belgium NV/SA
(40) Incorporated on December 30, 2020.
(41) Under liquidation
(42) Liquidated effective March 9,2021
(43) Incorporated on March 23, 2021
(44) On March 28, 2021 Infosys Limited and Infosys Germany Holding Gmbh
registered Infosys Automotive and Mobility GmbH & Co. KG, a partnership
firm.
(45) Liquidated effective April 27,2021
(46) Incorporated on August 4, 2021
(47) Liquidated effective July 20, 2021
(48) Liquidated effective September 1, 2021
(49) Liquidated effective September 2, 2021
(50) Incorporated on August 31, 2021
(51) On December 14, 2021, Infosys Consulting Pte. Ltd., a wholly-owned
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation subsidiary of Infosys Limited acquired 100% of voting interests in Infosys
(Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia)
Sdn. Bhd.)
(52) Liquidated effective December 16, 2021
(53) Liquidated effective November 23, 2021
(54) Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
Inc, effective December 31, 2021
(55) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021
(56) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(57) Merged with Beringer Commerce Holdings LLC, effective January 1, 2022
(58) Merged with Beringer Capital Digital Group Inc, effective January 1, 2022
(59) Merged with Blue Acorn iCi Inc, effective January 1, 2022
(60) Incorporated on February 20, 2022
(61) On March 17, 2022, Infosys Limited acquired non-controlling interest of
0.01% voting interests in Infosys BPM Limited.
(62) On March 22, 2022, Infosys Consulting Pte. Ltd., a wholly-owned
subsidiary of Infosys Limited acquired 100% voting interests in Infosys
Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))
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 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
Infosys Foundation(1)(2)
Country
Nature of relationship
India
India
India
India
India
India
India
India
India
India
India
India
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
Post-employment benefit plan of Infosys
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
Trust jointly controlled by KMPs
Refer to Note 2.22 for information on transactions with post-employment benefit plans mentioned above.
(1) Effective January 1, 2022
(2) During the quarter ended March 31, 2022, the Group contributed `2 crore towards CSR.
List of key management personnel
Whole-time Directors
Salil Parekh, Chief Executive Officer and Managing Director
U.B. Pravin Rao, Chief Operating Officer (retired as
a Chief Operating Officer and Whole-time director
effective December 12, 2021)
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)
Non-whole-time Directors
Nandan M. Nilekani
Michael Gibbs
Kiran Mazumdar-Shaw
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)
Executive Officers
Nilanjan Roy, Chief Financial Officer
Mohit Joshi, President
Ravi Kumar S., President
Krishnamurthy Shankar, Group Head - Human Resources
Inderpreet Sawhney, Group General Counsel and
Chief Compliance Officer
Company Secretary
A.G.S. Manikantha
323
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Transaction with key managerial personnel
The compensation to key managerial personnel which comprise 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,
2022
134
11
145
2021
144
6
150
(1) Total employee stock compensation expense for the years ended March 31, 2022 and March 31, 2021 includes a charge of ₹ 65 crore and ₹ 76 crore, respectively,
towards key managerial personnel. (Refer to Note 2.12)
(2) Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.
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
Amount
as %age of
consolidated
net assets
as %age of
consolidated
profit or loss
Amount
in ₹ crore
Share in other
comprehensive income
Share in total
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
as %age of
consolidated
total
comprehensive
income
Amount
Infosys Ltd.
83.20
69,306
87.55
21,235
104.35
(48)
87.51
21,187
Indian subsidiaries
Infosys BPM Limited
EdgeVerve Systems Limited
Infosys Green Forum
Skava Systems Pvt. Ltd.
Foreign subsidiaries
Brilliant Basics Holdings
Limited
Brilliant Basics Limited
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 Norway A/S
324
5.78
0.97
0.35
0.09
4,818
806
288
76
3.96
3.09
0.02
–
960
750
5
–
0.07
62
0.48
116
–
–
–
1
–
–
0.15
123
–
–
–
–
–
0.01
0.08
0.01
0.14
0.03
–
–
–
–
1
11
65
5
115
26
0.01
0.01
(0.04)
(0.02)
–
0.01
–
0.07
0.06
(0.28)
0.06
–
0.03
0.07
2
3
(9)
(5)
–
2
–
17
14
(69)
15
1
8
17
47.83
(10.87)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(22)
5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3.87
3.12
0.02
–
938
755
5
–
0.48
116
0.01
0.01
(0.04)
(0.02)
–
0.01
–
0.07
0.06
(0.28)
0.06
–
0.03
0.07
2
3
(9)
(5)
–
2
–
17
14
(69)
15
1
8
17
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
as %age of
consolidated
profit or loss
Amount
Share in other
comprehensive income
Share in total
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
as %age of
consolidated
total
comprehensive
income
Amount
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
GuideVision UK Ltd
Infosys Germany Holding
GmbH
Infosys Chile SpA
Infosys Americas Inc.,
Infosys Austria GmbH
Infosys (Czech Republic)
Limited s.r.o.
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.
(Argentina)
Infosys Management
Consulting Pty Limited
Infosys Consulting (Belgium)
NV
Infosys Consulting Ltda.
Infosys Consulting AG
Infosys Consulting (Shanghai)
Co., Ltd.
Infosys Consulting GmbH
Infosys Consulting SAS
Infy Consulting Company Ltd.
Infosys Consulting Holding AG
Infy Consulting B.V.
Infosys Consulting S.R.L.
(Romania)
0.01
0.01
–
(0.02)
0.06
–
–
–
–
–
–
0.02
–
–
5
5
(1)
(12)
50
4
1
1
1
2
2
15
1
4
0.13
106
–
0.40
1
334
–
0.05
0.01
(0.04)
0.09
–
–
(0.02)
(0.01)
0.01
–
0.02
–
0.01
0.08
–
0.26
1
11
3
(10)
22
(1)
1
(4)
(3)
2
–
5
–
2
19
–
64
0.80
666
(0.28)
(68)
0.11
0.95
(0.01)
0.05
–
0.12
0.10
–
0.08
0.03
0.23
0.51
0.04
0.07
89
788
(5)
44
(3)
104
81
–
68
22
190
423
36
56
0.12
0.48
28
117
(0.03)
(8)
0.04
10
0.04
0.10
0.10
–
0.12
0.04
0.13
0.29
0.04
0.07
9
25
24
1
29
10
31
70
9
18
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(17.39)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
8
–
–
–
–
–
–
–
–
0.05
0.01
(0.04)
0.09
–
–
(0.02)
(0.01)
0.01
–
0.02
–
0.01
0.08
–
0.26
1
11
3
(10)
22
(1)
1
(4)
(3)
2
–
5
–
2
19
–
64
(0.28)
(68)
0.12
0.48
28
117
(0.03)
(8)
0.04
10
0.04
0.10
0.13
–
0.12
0.04
0.13
0.29
0.04
0.07
9
25
32
1
29
10
31
70
9
18
325
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
as %age of
consolidated
profit or loss
Amount
Share in other
comprehensive income
Share in total
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
as %age of
consolidated
total
comprehensive
income
Amount
Infosys Consulting Pte Limited
(0.71)
(590)
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.
Kaleidoscope Animations
Kaleidoscope Prototyping
Panaya GmbH
Panaya Inc.
Panaya Ltd.
Infosys McCamish Systems LLC
Simplus Philippines, Inc.
Simplus Australia Pty Ltd
Outbox systems Inc. dba
Simplus (US)
Stater Belgium N.V./S.A.
HypoCasso B.V.
Stater Nederland B.V.
Stater N.V.
Stater Participations B.V.
Stater XXL B.V.
Infosys Automotive and
Mobility GmbH & Co. KG
Infosys Turkey Bilgi
Teknolojikeri Limited Sirketi
Infosys (Malaysia) SDN. BHD.
Stater GMBH
Infosys Germany GmbH
(formerly Kristall 247. GmbH
(“Kristall”))
0.01
0.42
3.30
0.81
–
–
0.11
0.22
(0.02)
–
–
0.22
0.09
0.01
–
0.17
7
354
2,745
676
–
3
94
181
(18)
–
–
180
76
13
(1)
142
(0.76)
(629)
1.01
0.01
(0.04)
0.06
0.10
0.03
0.23
0.73
843
9
(30)
49
80
24
190
606
(0.29)
(244)
–
–
0.67
0.01
0.25
(0.05)
0.45
–
–
0.16
0.26
–
(0.16)
(0.01)
0.44
0.11
0.02
–
–
0.15
1.02
0.02
–
162
2
62
(12)
108
–
–
39
62
1
(38)
(3)
106
26
6
–
1
36
248
4
(1)
(0.13)
(31)
0.04
0.03
0.37
0.81
–
–
10
8
89
197
–
–
–
–
–
–
–
–
–
–
–
(4.35)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.32)
(270)
(1.23)
(297)
(19.57)
–
0.04
–
–
(1)
33
(3)
–
–
(0.02)
(0.01)
–
(1)
(4)
(3)
–
–
–
–
–
–
–
–
–
–
–
–
–
-
2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9
–
–
–
0.67
0.01
0.26
(0.05)
0.45
–
–
0.16
0.26
0.01
(0.16)
(0.01)
0.44
0.11
0.02
–
–
0.15
1.02
0.02
–
162
2
62
(12)
108
–
–
39
62
3
(38)
(3)
106
26
6
–
1
36
248
4
(1)
(0.13)
(31)
0.04
0.03
0.37
0.81
–
–
10
8
89
197
–
–
(1.18)
(288)
–
(0.02)
(0.01)
–
(1)
(4)
(3)
–
Subtotal
100.00 83,300
100.00 24,256
100.00
(46)
100.00
24,210
326
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Name of entity
Net assets
Share in profit or loss
Amount
as %age of
consolidated
net assets
as %age of
consolidated
profit or loss
Amount
Share in other
comprehensive income
Share in total
comprehensive income
Amount
as %age of
consolidated
other
comprehensive
income
as %age of
consolidated
total
comprehensive
income
Amount
Adjustment arising out of
consolidation
Controlled trusts
Non-controlling interests
Total
(8,182)
232
75,350
386
75,736
(2,158)
48
22,146
(36)
22,110
228
–
182
1
183
(1,930)
48
22,328
(35)
22,293
2.26 Segment reporting
Ind AS 108, Operating segments, 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 has 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 & 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 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
2.18 Revenue from operations.
327
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation Business Segments
For the years ended March 31, 2022 and March 31, 2021 :
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
38,902
32,583
17,734
14,745
15,182
14,484
13,336
10,036
12,628
12,539
9,447
8,560
22,119
17,612
6,469
6,025
8,632
6,937
2,972
2,691
9,179
7,349
2,631
2,484
7,673
6,500
2,586
2,487
8,457
4,996
2,471
1,888
5,952
4,804
1,589
1,302
10,314
8,946
6,130
5,117
3,372
2,795
4,225
3,552
2,408
2,563
2,495
2,454
8,517
6,870
4,840
3,516
1,297
1,198
2,380
2,156
3,450
1,21,641
3,100
1,00,472
2,357
69,209
1,919
53,633
926
875
20,941
18,950
167
306
31,491
27,889
Unallocable expenses
Other income, net (Refer to Note 2.19)
Finance cost
Profit before tax
Income tax expense
Net profit
Depreciation and amortization expense
Non-cash expenses other than depreciation and
amortization
(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 Health care
(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in Public Services
Significant clients
No client individually accounted for more than 10% of the revenues in the years ended March 31, 2022 and March 31, 2021.
328
3,476
3,267
2,295
2,201
200
195
30,110
26,628
7,964
7,205
22,146
19,423
3,476
3,267
–
–
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation 2.27 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
in ₹ crore
Note
Year ended March 31,
2022
2021
2.18
1,21,641
1,00,472
2.19
2.17
2.17
2.22
2.5
2.11
2.5
81,998
65,413
39,643
35,059
5,156
6,472
11,628
28,015
2,295
200
4,627
5,810
10,437
24,622
2,201
195
30,110
26,628
7,811
153
6,672
533
22,146
19,423
(85)
96
11
(8)
228
(49)
171
134
119
253
25
130
(102)
53
182
306
22,328
19,729
22,110
19,351
36
72
22,146
19,423
22,293
19,651
35
78
22,328
19,729
for and on behalf of the Board of Directors of Infosys Limited
Nandan M. Nilekani
Chairman
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
D. Sundaram
Director
Jayesh Sanghrajka
Executive Vice President and Deputy Chief
Financial Officer
A.G.S. Manikantha
Company Secretary
Bengaluru
April 13, 2022
329
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsConsolidatedFinancial statementsStrategy reviewApproaching value creation
Introduction
Approaching
value creation
Strategy
review
Delivering
value
Governance
Statutory
reports
Financial
statements
BRSR
Business Responsibility and Sustainability Report 2021-22
Infosys has always put sustainability at the heart of its
business approach. Our ability to fulfil and exceed our
responsibilities to our stakeholders today and tomorrow
is a testament to our commitment. We have balanced
success as a business with unwavering focus on exemplary
governance and responsiveness to the needs of the ecology
and society. As an early proponent of responsible business,
we have readily embraced our obligation to integrate
environmental, social and governance (ESG) factors into
what we do. In 2012-13, we were among the first companies
to publish the Business Responsibility Report (BRR). We also
became the first IT company globally, in 2014, to report our
sustainability performance in conformance with the GRI G4
(comprehensive) criteria.
Infosys has adopted the Business Responsibility and
Sustainability Report (BRSR) voluntarily for fiscal 2021-22 in
order to provide enhanced disclosures on its ESG practices
and priorities. The BRSR follows the NGRBC principles on
the social, environmental and economic responsibilities of
business. In addition to this, we also publish a comprehensive,
independently assured ESG Report annually, based
on the GRI Standard.
Our BRSR 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 the
ESG 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 Integrated
Annual Report and ESG Report for all topics that are material
to us and to our stakeholders.
Our detailed, independently assured Infosys ESG Report
2021-22 is available at https://www.infosys.com/sustainability/
documents/infosys-esg-report-2021-22.pdf.
Infosys ESG data book 2021-22 can be accessed at
https://www.infosys.com/sustainability/documents/infosys-esg-
databook-2021-22.pdf.
330
Infosys Integrated Annual Report 2021-22
I Company details
1. Corporate Identity Number (CIN) of the company
L85110KA1981PLC013115
Section A: General Disclosure
2. Name of the company
3. Year of incorporation
4. Registered office address
5. Corporate address
6. E-mail id
7. Telephone
8. Website
Infosys Limited
July 02, 1981
Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India
Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India
sustainability@infosys.com / askus@infosys.com
+91-80-2852 0261
www.infosys.com
9. Financial year for which reporting is being done
April 2021-March 2022
10. Name of the Stock Exchange(s) where shares are listed
In India, we are listed on the
* BSE Limited (BSE)
* National Stock Exchange of India Limited (NSE)
In the US, we are listed on the New York Stock Exchange (NYSE)
11. Paid-up Capital
12. Name and contact details (telephone, email address) of the person who may be
contacted in case of any queries on the BRSR report
` 2,098 crore
ARUNA C. NEWTON
Associate Vice President
Tel: 91 80 2852 0261
Email: arunacnewton@infosys.com
13. Reporting boundary - Are the disclosures under this report made on a standalone
basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the
entities which form a part of its consolidated financial statements, taken together).
The disclosures under this report are made on a consolidated basis, unless otherwise
specified.
3
3
1
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
3
2
II Products / services
14. Details of business activities (accounting for 90% of the turnover)
S. No.
1
Description of main activity
Description of business activity
% of turnover of the entity
Software and IT consulting
(GICS classification – Information Technology – Software and
Services)
Software application development and
maintenance, IT consulting
>90% of the turnover
15. Products / services sold by the entity (accounting for 90% of the entity’s turnover)
Product / service
NIC code
% of total turnover contributed
Software application development and maintenance,
IT consulting
620
93.3%
S. No.
1
III Operations
16. Number of locations where plants and / or operations / offices of the entity are situated
Number of plants
Number of offices
NA
NA
51
196
Location
National
International
17. Markets served by the Company
a.
Locations
National (No. of states)
International (No. of countries)
b. What is the contribution of exports as a percentage of the total turnover of the entity?
97.1%
c. Types of customers and beneficiaries –
Business to business
Total
247
Number
11
80
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation IV Employees
18. Details as at the end of fiscal:
a. Employees
S. No.
Particulars
Employees
Permanent (D)
Other than permanent
(contract employees) (E)
Total employees (D + E)
Differently-abled employees
Permanent (D)
Other than permanent (E)
Total employees (D + E)
1
2
3
1
2
3
Total (A)
3,14,015
25,470
3,39,485
1,026
–
1,026
Male
Female
No. (B)
1,89,517
20,364
2,09,881
% (B / A)
60.4
80
61.8
No. (C)
1,24,488
5,106
1,29,594
% (C / A)
39.6
20
38.2
No. (B)
% (B / A)
No. (C)
% (C / A)
752
–
752
73
–
73
274
–
274
27
–
27
19. Participation / Inclusion / Representation of women (including differently-abled)
No. and percentage of females
Total (A)
8
7
No. (B)
2
1
% (B / A)
25
14
Board of Directors
Key Management Personnel *
* As on March 31, 2022
3
3
3
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
3
4
20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)
Turnover rate in fiscal 2022
Turnover rate in fiscal 2021
Turnover rate in fiscal 2020
Male
Female
Total
Male
Female
Total
Male
Female
Total
Permanent employees
28.7%
26.1%
27.7%
11.3%
10.2%
10.9%
17.6%
17.0%
17.4%
Other than permanent employees
We do not calculate turnover of contract staff as they are hired for a fixed contract period, by design.
This table represent Voluntary Attrition % (LTM – IT Services)
V. Holding, subsidiary and associate companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Refer to Annexure 1 to the Board’s report for information on holding / subsidiary / associate companies / joint ventures.
VI. CSR Details
22 (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013:
Yes, refer to Annexure 6 to the Board’s report
(ii) Turnover (in `)
(iii) Net worth (in `)
(1) Total equity attributable to equity holders of the Company
VII. Transparency and disclosures compliances
` 1,21,641 crore
` 75,350 crore(1)
23. Complaints / grievances on any of the principles under the National Guidelines on Responsible Business Conduct
Infosys’ stakeholders include our investors, clients, employees, vendors / partners, government, and the community. A strong whistleblower policy and non-retaliation clause
is available to all our stakeholders. Our whistleblower policy is available at https://www.infosys.com/investors/corporate-governance/Documents/whistleblower-policy.pdf. For
details on investor complaints received and resolved, refer to the ‘Investor complaints’ available in the Corporate governance report of this Integrated Annual Report. For details on
employee grievances and resolution, refer to question 6 of principle 5. More details are available on our ESG microsite at https://www.infosys.com/about/corporate-responsibility/
social/employee-wellbeing/resolution-hubs.html.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 26. Overview of the entity’s material responsible business conduct issues. Please indicate material responsible business conduct and sustainability issues pertaining to
environmental, social and governance matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the
risk along with its financial implications, as per the following format
Indicate
whether risk
or opportunity
(R / O)
Opportunity, risk
S.
No.
1.
Material
issue
identified
Rising
demand for
global digital
talent and
inadequate
supply
Financial implications of the risk
(Indicate positive or negative
implications)
Positive : Given the shortage of digital
talent, there is immense scope to
create a talent pool to accelerate the
digital transformation journey of our
customers.
Rationale for identifying the risk /
opportunity
In case of risk, approach to adapt or mitigate
Opportunity
•
Increased revenue from higher
demand for digital services from
customers
• Access to a large pool of trained
digital talent will help meet
increasing business requirements
and act as a differentiator.
Risk
• Our success depends largely upon
our highly skilled technology
professionals and our ability to
hire, attract, motivate, retain and
train these personnel.
We are executing our four-pronged strategy to
strengthen our relevance to clients and drive
accelerated value creation. One of the pillars of
our strategy is reskilling employees in emerging
technologies. As technology shifts gain rapid
acceleration, we will continue to drive talent
reskilling at scale for our own employees and
for our clients’ organizations in new areas of
digital services. Our investments in our Global
Education Center and in creating various
learning opportunities for our employees
help them stay abreast of new developments
in software technologies, spur innovation
and build a lifelong career with the Company.
We will continue to invest in advanced, anytime
anywhere learning systems such as our Lex
platform and in creating and harnessing up-to-
date content from internal and external sources.
Further, we are expanding our relationships
with universities around the world to curate
specific curricula for our employees in areas
such as creative design skills, machine learning,
autonomous technologies, blockchain etc. The
talent management levers help us maintain the
right digital talent mix, meet self-sufficiency in
digital areas and better engage and retain our
talent.
Refer to the Management’s discussion and
analysis section in our Integrated Annual
Report for more details.
3
3
5
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
3
6
2.
Opportunity, risk
Increasing
instances of
cybersecurity
incidents and
data breaches
Positive : Minimize cybersecurity
threats to Infosys and customers
through advanced cybersecurity
solutions.
Opportunity
•
Increasing revenue from
cybersecurity service offerings
and solutions such as Cyber Watch,
Cyber Intel, Cyber Hunt, Cyber Scan,
Cyber Gaze, Cyber Compass, Cyber
Central and Managed Protection
Detection and Response (MPDR)
modules of Cyber Next.
• Establish strong strategic
partnerships with global
cybersecurity solution companies
to help enhance and strengthen
our cybersecurity solutions.
• Being recognized as industry
leader in our information security
practices and adoption of leading
data privacy standards across all
global operations will result in
higher client confidence.
Risk
• Our reputation could be at risk and
we may be liable to our clients for
damages caused by cyber security
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 European Union
(“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.
At Infosys, in the past year, while our employees
operated efficiently as a remote and hybrid
workforce, we continued to remain vigilant
about the evolving cybersecurity threat
landscape. To continue to have robust
cybersecurity processes, the team has remained
abreast of emerging cybersecurity events
globally so as to achieve higher compliance
and its continued sustenance. We continue to
be certified against the Information Security
Management System (ISMS) Standard ISO
27001:2013. Additionally, we have also been
attested on SSAE 18 SOC 1 and SOC 2 by
an independent audit firm. Our periodic
stakeholder interactions ensure that we have
sponsorship from the senior management and
all critical stakeholders in a timely manner.
Driving a positive cybersecurity culture is a key
constituent of our robust cybersecurity strategy.
This is achieved through different information
security awareness programs.
The data privacy office was constituted at
Infosys a decade ago and it functions as an
independent business-enabling unit. The
multi-layered unit works with a cross-section
of stakeholders and reports to the senior
management.
We constantly assess our liabilities as processors
and controllers and implement controls,
where required, to mitigate the risks. We have
formulated and implemented policies and
procedures to identify and report privacy
breaches to the affected data subjects and / or
regulators (as required) within the stipulated
time. We are also covered by insurance to
some extent, in case of any eventuality. We
run extensive awareness programs across
the organization for all employees and sub-
contractors about the importance of adhering
to data privacy laws and information security
requirements.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Opportunity, risk
Changing
expectations
of the
workforce
and work
environments
Opportunity
• Facilitating best-in-class employee
experience and being recognized
among the best employers in our
key operating regions will help us
attract, hire and retain the talent.
• Creating a diverse workforce to
attract best-in-class talent and
improve productivity
Risk
• Continued employee preference
to work out of remote locations
on a long-term basis, together
with expectations from clients to
return to office, if not managed
adequately, may impact attrition,
client satisfaction, and our ability
to grow profitably.
Increasing
probability
of disruptive
climate
change
events
Opportunity, risk
Opportunity
•
Increased revenue from increased
demand in climate-related
technologies and services
• Savings from use of lower-emission
sources of energy (renewables)
• Savings from moving to more
efficient buildings (Energy
Efficiency Program)
Risk
• Climate change risks are
increasingly manifesting in our
business as strategic risks, physical
risks and transitional (market and
compliance) risks, which if not
managed adequately, can affect
our operations and profitability.
Positive : Improved the Infosys
employee experience and enhanced
customer satisfaction.
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.
We supported our employees to navigate the
pandemic seamlessly through measures such
as vaccination centers, hospital support, COVID
care centers, increased insurance coverage, and
more.
Refer to the Infosys ESG data book 2021-22 for
details on risk mitigations.
Positive : Scope to improve Infosys’
competitiveness and capitalize on the
shifting client preferences using its
sustainability, low-carbon transition
and digital / IT expertise to help its
clients in their sustainability and low-
carbon journey.
Negative : Increased operating
costs in meeting the environmental
standards.
Refer to the Infosys ESG data book
2021-22.
3.
4.
3
3
7
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
3
8
Section B: Management and process disclosures
Disclosure question
P1
P2
P3
P4
P5
P6
P7
P8
P9
Policy and management processes
1a. Whether your entity’s
policy / policies cover
each principle and its core
elements of the NGRBCs.
(Yes / No)
1b. Has the policy been
approved by the Board?
(Yes / No)
1c. Web link of the
policies, if available
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Refer to the
Whistleblower
Policy,
Code of Conduct
and Ethics and
Anti-Bribery and
Anti-Corruption
(ABAC) policy
(available on our
intranet)
Refer to the
Supplier Code
Conduct,
Responsible
Supply Chain
Policy, and
Information
Security Policy
(available on our
intranet)
Refer to
our Human
rights policy
statement
Refer to
our CSR
Policy and
Sustainability
Policy
(available on
our intranet)
Refer to
our Human
rights policy
statement,
Supplier Code
of Conduct,
Responsible
Supply
Chain Policy
(available on
our intranet)
Refer to our
HSE Policy
Sustainability
Policy
(available on
our intranet)
Refer to our
CSR Policy and
Sustainability
Policy
(available on
our intranet)
Refer to
our Privacy
Statement
2. Whether the entity has
translated the policy into
procedures. (Yes / No)
3. Do the enlisted policies
extend to your value
chain partners? (Yes / No)
Yes
Yes
4. Name of the national
and international codes
/ certifications / labels
/ standards (e.g. Forest
Stewardship Council,
Fairtrade, Rainforest
Alliance, Trustee)
standards (e.g. SA 8000,
OHSAS, ISO, BIS) adopted
by your entity and
mapped to each principle.
GRI standard,
UNGC,
Corporate
Governance
Voluntary
Guidelines, 2009,
Organization for
Economic Co-
operation and
Development
(OECD)
Principles of
Corporate
Governance
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
GRI standard, ISO
14001
GRI standard,
ISO 45001,
Universal
Declaration
of Human
Rights, ILO
Declaration on
Fundamental
Principles
and Rights
at Work,
UN Guiding
Principles on
Business and
Human Rights
GRI standard
GRI standard,
Universal
Declaration
of Human
Rights, ILO
Declaration on
Fundamental
Principles and
Rights at Work,
UNGC
GRI standard,
ISO 14001,
PAS 2060:2014,
ISO 45001,
ISO22301,
SASB,
TCFD
GRI standard,
UNGC, UN WEP
principles
GRI standard,
CSR discloures
pursuant to
Section 135 of
the Companies
Act, 2013
read with
Companies
(Corporate
Social
Responsibility
Policy) Rules,
2014, as
amended
GRI standard,
ISO 27001,
ISO 27701, SASB
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 5. Specific commitments,
goals and targets set by
the entity with defined
timelines, if any.
6. Performance of the
entity against the specific
commitments, goals
and targets along with
reasons in case the same
are not met.
In 2020, we became carbon neutral, 30 years ahead of the timeline set by the Paris Agreement. In October 2020, we launched our ESG vision and
ambitions for 2030. The Company’s ESG Vision 2030 can be accessed at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-
responsibility/esg-vision-2030/vision-and-ambition-2030.html.
Yes. The details will be available in Infosys ESG Report 2021-22.
7. Statement by director responsible for the Business Responsibility Report, highlighting ESG related challenges, targets and achievements
“Infosys is committed to make the business truly sustainable and socially responsible. The Company’s ESG roadmap is reflected in Infosys ESG Vision 2030 as an ongoing
aspiration to be a well-governed model organization for diverse talent with an inclusive workplace and community strategies to leverage technology for good.”
Salil Parekh
Chief Executive Officer and Managing Director
Read Infosys ESG Report 2021-22 for information highlighting ESG related challenges, targets and achievements.
8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy(ies)
The ESG committee of the Board oversees the Business Responsibility and progress on our ESG ambitions. Read more in the ESG committee section of the Corporate goverance report
in the Integrated Annual Report.
9. Does the entity have a specified Committee of the Board / Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details
Yes, the ESG committee of the Board. Read more in the ESG committee section of the Corporate goverance report in the Integrated Annual Report.
3
3
9
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
4
0
Subject for review
Indicate whether review was undertaken by
Director / Committee of the Board / Any other
committee
Frequency (Annually / Half yearly / Quarterly /
Any other – please specify)
P1
P2
P3
P4
P5
P6
P7
P8
P9
P1
P2
P3
P4
P5
P6
P7
P8
P9
10. Details of Review of
NGRBCs by the Company
11. Has the entity
carried out independent
assessment / evaluation
of the working of its
policies by an external
agency? (Yes / No). If
yes, provide name of the
agency.
12. If answer to
question(1) above is no
i.e. not all principles
are covered by a policy,
reasons to be stated
Performance against above policies and follow
up action
Yes
Annually
Compliance with statutory requirements of
relevance to the principles, and, rectification of
any non-compliance
We comply with all applicable laws of the land we operate in.
Principles
P1
P2
P3
P4
P5
P6
P7
P8
P9
Answer
Yes. KPMG Assurance and Consulting Services LLP has provided a ‘reasonable assurance’ on GHG
emissions and a ‘limited assurance’ on select non-financial sustainability disclosures based on GRI
standards and SASB standards.
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
The entity does not consider the principles
material to its business (Yes / No)
The entity is not at a stage where it is in a position
to formulate and implement the policies on
specified principles (Yes / No)
The entity does not have the financial or human
and technical resources available for the task (Yes
/ No)
It is planned to be done in the next financial year
(Yes / No)
Any other reason (please specify)
Not applicable
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, Diversity Policy
P4 – CSR Policy, Sustainability Policy
P5 – Human Rights Statement, Supplier Code of Conduct, Responsible Supply Chain Policy
P6 – HSE Policy
P7 – Sustainability Policy
P8 – CSR Policy, Sustainability Policy
P9 – Information Security Policy, Brand Guidelines, Privacy Statement
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Section C: Principle-wise performance disclosure
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is
ethical, transparent and accountable
1. Percentage coverage by training and awareness programs on any or all the principles in the financial year
Essential indicators
Segment
Total number of training and awareness
programs held
Topics / principles covered under the
training and its impact
% coverage by awareness programs
Board of Directors
Key Managerial Personnel
We have a dedicated ESG learning channel on Lex, our immersive digital learning platform. The channel contains a variety of resources,
including training programs, awareness campaigns, leader talks, contests and more. The learning content addresses the BRSR topics.
We conduct campaigns through the year to encourage employees to leverage their learning.
Employees other than BoD and KMPs
In addition, we have weekly engagement mailers on ESG topics, and we cover 100% of our employees.
For Board of Directors training programs, refer to the Corporate governance report of the Integrated Annual Report.
Engagement activities such as celebration of events related to environment, diversity, safety, health and wellness, also leverage the
ESG learning channel resources.
2. Details of fines / penalties / punishment / award / compounding fees / settlement amount paid in proceedings with regulators / law enforcement agencies / judicial
institutions, in the financial year
None
3. Of the instances given in table 3, details of the Appeal / Revision preferred in cases where monetary or non-monetary action has been impugned.
None
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.
Yes. Our Code of Conduct and Ethics complies with the legal requirements of applicable laws and regulations, including anti-bribery, anti-corruption and ethical handling of conflicts
of interest. Additionally, we also have an ABAC policy, which provides the requirements around ABAC in detail.
5. Number of Directors / KMPs / employees / workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery / corruption:
There have been no cases involving disciplinary action taken by any law enforcement agency for the charges of bribery / corruption against directors / KMP / employees / workers
that have been brought to our attention.
6. Details of complaints with regard to conflict of interest:
None
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators / law enforcement agencies / judicial
institutions, on cases of corruption and conflicts of interest
None
3
4
1
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
4
2
Leadership indicators
1. Awareness programs conducted for value chain partners on any of the principles during the financial year:
Segment
Total number of awareness programs held
Topics / principles covered under
the training
% of value chain partners covered under
the awareness programs
Value chain partners
2 (6 hours)
Governance, ethics & compliance with
law, fair business practices, labor practices
and human rights, health and safety, and
environment
25% of the top 100 suppliers
2. Does the entity have processes in place to avoid / manage conflicts of interest involving members of the Board? (Yes / No) If Yes, provide details of the same.
Yes. The Company receives an annual declaration (changes from time to time) from its Board members and KMP on the entities they are interested in and ensures requisite approvals
as required under the statute as well as the Company’s policies are in place before transacting with such entities / individuals.
PRINCIPLE 2:
Businesses should provide goods and services in a manner that is sustainable and safe
Essential indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to
total R&D and capex investments made by the company, respectively.
Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and
capex investments will be made available in our Business responsibility and sustainability report from fiscal 2023 onwards.
2a. Does the company have procedures in place for sustainable sourcing? (Yes / No)
Yes
2b. If yes, what percentage of inputs were sourced sustainably?
As part of the onboarding process for suppliers, we require their response to an ESG commitment question and their acceptance of the Supplier Code of Conduct, which is based on
the UNGC principles.
3. Describe the processes in place to safely collect, reuse, recycle and dispose after sale and at the end of life of your products.
(a) Plastics (including packaging)
(b) E-waste
(c) Hazardous waste
(d) Other waste
Not applicable. We don’t manufacture any products. We are an IT services company.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 4. Whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken
to address the same .
Not applicable
Leadership indicators
1. Has the entity conducted Life Cycle Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in
the following format?
We conduct LCA on our operations and we are committed to minimize our environmental impact. Detailed disclosure in this regard is available in the Environment section of Infosys
ESG Report 2021-22 and Infosys ESG data book 2021-22.
2. If there are any significant social or environmental concerns and / or risks arising from production or disposal of your products / services, as identified in the Life Cycle
Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same
Nil
3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).
Refer to the Waste management section in Infosys ESG Report 2021-22 and Principle 6 of the BRSR in the Integrated Annual Report.
4. Of the products and packaging collected at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:
Not applicable. We are an IT services company, we don’t manufacture any products.
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Not applicable. We are an IT services company, we don’t manufacture any products.
3
4
3
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
4
4
PRINCIPLE 3:
Businesses should respect and promote the wellbeing of all employees, including those in their value chains
a. Details of measures for the well-being of employees
Category
Total (A)
Essential indicators
% of employees covered
Health insurance
Accident insurance Maternity benefits
Paternity benefits Day care facilities
Number
(B)
% (B / A)
Number
(C)
% (C / A)
Number
(D)
% (D / A)
Number
(E)
% (E / A)
Number
(F)
% (F /
A)
Permanent employees (1)
Male
Female
Total
Male
Female
Total
1,57,132
1,57,132
1,04,672
1,04,672
2,61,804
2,61,804
20,364
5,106
25,470
8,845
2,459
11,304
100
100
100
43
48
44
1,57,132
1,04,672
2,61,804
100
100
100
–
1,04,672
1,04,672
–
100
100
1,57,132
100
1,57,132
–
–
1,04,672
1,57,132
100
2,61,804
Other than permanent employees (1)(2)
8,845
2,459
11,304
43
48
44
–
5,106
5,106
–
100
100
20,364
100
20,364
–
–
5,106
20,364
100
25,470
100
100
100
100
100
100
(1)
Includes only employees whose base location is India
(2) The health insurance and accident insurance is extended to the housekeeping and security staff working on our campuses in India. The health insurance and accident insurance of other contractors are
covered by their respective employers.
2. Details of retirement benefits, for current and previous financial years
Benefits
PF
Gratuity
ESI (1)
Others – please specify
Fiscal 2022
Fiscal 2021
No. of employees
covered as a % of
total employees
No. of workers
covered as a % of total
workers
Deducted and
deposited with the
authority (Y / N /
NA)
No. of employees
covered as a % of
total employees
No. of workers
covered as a % of
total workers
Deducted and
deposited with
the authority (Y /
N / NA)
100
100
9
100
100
86
Y
Y
Y
100
100
8
100
100
94
Y
Y
Y
(1) Applicable to employees as per the threshold limit prescribed under the Employees State Insurance Act, 1948.
This table represents retirement benefits for employees working in India. All our employees working outside India are eligible for retirement benefits according to the applicable laws of the land.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not,
whether any steps are being taken by the entity in this regard
Yes. The premises / offices of the entity are accessible to differently-abled employees and workers.
Accessible infrastructure: Huge investments in physical infrastructure have led to enhancements, including accessible walkways and common areas, so that not just buildings, but
our whole campuses have become accessible.
Local transport allowance: As part of our commitment to facilitating accessibility and acknowledging the fact that every differently-abled person will have a separate accessible
commute requirement,we provide special transport allowance to employees in India.
We also provide loans for employees with disabilities to help them buy assistive devices.
The Practice Guidelines for the inclusion of persons with disabilities builds learning among various functionaries in the organization to enable them to craft inclusive practices in
their functions to integrate people with disabilities.
Facilitating careers: Continuing our focus on addressing aspirations, we have also challenged many traditional biases and successfully placed employees with disabilities onsite at
client locations and projects. We have employees working from the entry level to the senior manager level as well as in our Service Delivery, Quality, Solution Design and Centers of
Excellence.
Accessibility Lab: The digital accessibility learning suite of programs and certifications enables engineers to gain a deeper understanding of digital accessibility requirements with a
view to build accessible solutions. Infosys’ Accessibility Testing Tool (iATT) was listed as one of the w3.org’s recommended tools. iATT is an intelligent accessibility compliance analyzer
with a robust rules engine and exhaustive features that enable intuitive data for accessibility analysis.
The Infyability ERG provides a great opportunity to strengthen communication and awareness, and importantly, workplace support and inclusion of employees with disabilities.
Our employees with disabilities include locomotor, visual, hearing, speech, amputated limbs and autism spectrum disorders and work in mainstream business.
Read more at https://www.infosys.com/about/diversity-inclusion/people-disabilities.html.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.
Yes. The entity has an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016. The policy is available on our website, at
https://www.infosys.com/careers/discover/culture/documents/diversity-inclusion-policy.pdf.
5. Return to work and retention rates of employees that took parental leave.
Gender
Male
Female
Permanent employees – fiscal 2022
Permanent workers – fiscal 2021
Return to work rate
Retention rate*
Return to work rate
Retention rate*
85%
87%
71%
75%
94%
92%
90%
88%
* Total number of employees, by gender, who were still employed 12 months after they returned to work post parental leave. The return to work rates dropped in fiscal 2022 owing to attrition.
3
4
5
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
4
6
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief.
Permanent employees and other than
permanent employees
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization envisages an
open-door policy. Employees also have access to several forums where they can highlight matters or concerns faced at the workplace.
This is achieved through a well-established and robust grievance resolution mechanism comprising resolution hubs.
Resolution hubs adhere to the principles of natural justice, confidentiality, sensitivity, non-retaliation and fairness while addressing
concerns. The concerns are handled with a lot of sensitivity, while delivering timely action and closure. A detailed investigation process
ensures fairness for all involved, with an opportunity to present facts and any material evidence. More details on “Resolution Hubs” are
available our website at https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/resolution-hubs.html.
7. Membership of employees and workers in association(s) or unions recognized by the listed entity:
We recognize our employees’ right to assemble, communicate and join associations of their choice in matters related to their employment within the purview of our policies and
procedures. We respect the rights of our employees to associate or not associate through internal employee resource groups and seek representation, to bargain or not bargain
collectively in accordance with local laws.
Category
Fiscal 2022
Total employees
/ workers in
respective category
(A)
No. of employees /
workers in respective
category, who are part
of association(s) or
union (B)
Total permanent employees
Male
Female
3,14,015
1,89,517
1,24,498
7,668
4,695
2,973
Total employees
/ workers in
respective category
(C)
Fiscal 2021
No. of employees
/ workers in
respective
category, who
are part of
association(s) or
union (D)
2,59,619
1,59,298
1,00,321
9,517
3,331
6,186
% (D / C)
4
4
3
% (B / A)
2.44
2.48
2.39
8. Details of training of employees and worker (% to total no. of employees / workers in the category):
Continuous learning and reskilling have always been central to our culture. Our training program can be broadly classified as the Foundation Training program, designed to enable
fresh graduates to become corporate professionals, and the Continuous Education program, aimed at reskilling / upskilling our existing employees, designed to meet business needs
of the organization and the career aspirations of employees.
Foundation Training programs are generally offered in classroom training mode. However, due to the COVID-19 pandemic, many employees could attend this training online,
courtesy our digital learning platform, Lex. The curriculum of our Foundation Training program comprises over 46 technology streams and is designed to prepare our talent for
dynamic business requirements.
Our Continuous Education program has the twin objectives of increasing fulfillment of skilled talent in client projects, and enriching the expertise of our global workforce in next-
generation digital technologies and methodologies. Lex, our in-house mobile first online learning platform, offers over 13,700 curated courses, which includes over 10,000 courses
procured from partners. Lex has many self-learning courses which can be used by employees anytime, anywhere. We also offer instructor-led training programs for our employees
across the globe. For more information, refer to the Enabling digital talent at scale section in the ESG Report.
Embedding a Health, Safety and Environmental (HSE) culture in the organization necessitates competency development. Training needs are identified based on the nature of jobs,
which may have a significant impact on the environment or may pose occupational health and safety risks. Training includes awareness-building, mock drills, classroom sessions
and periodic demonstrations. HSE Management System (HSEMS) training is also a part of our employee induction programs. Job-specific and generic trainings are conducted for
contractual staff during induction and later through refresher training.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Fiscal 2022
On health and safety
measures
On skill upgradation
Fiscal 2021
On health and safety
measures
On skill upgradation
Total (A)
No. (B)
% (B / A)
No. (C)
% (C / A)
Total (D)
No. (E)
% (E / D)
No. (F)
% (F / D)
Male
1,89,517
1,89,517
Female
1,24,498
1,24,498
Total
3,14,015
3,14,015
100
100
100
1,54,824
1,03,022
2,57,846
81.6
82.7
82.1
1,59,298
1,00,321
2,59,619
1,59,298
1,00,321
2,59,619
100
100
100
1,39,351
82,741
2,22,092
87.4
82.6
85.5
9. Details of performance and career development reviews of employees and workers
100% of eligible employees have received performance and career development reviews.
10a. Whether an occupational health and safety management system has been implemented by the entity? (Yes / No). If yes, the coverage of such system?
Infosys recognizes and accords highest priority to safety and well-being of its employees and other relevant interested parties. Our HSE Policy enunciates our philosophy and
commitment towards the management of key HSE aspects. Our HSEMS is certified to ISO 45001:2018 standard, and covers 80% of our India locations. At the remaining locations as
well as our overseas locations, we have implemented processes based on legal requirements / internal benchmarks and have also included them in the internal audits cycle. We have
established numerous interventions to address occupational health-related topics including emotional well-being, mental health, ergonomics, safety, lifestyle diseases and more.
Well-equipped occupational health centers are available in all our campuses in India. During the year, doctors and physios have helped employees and their dependents through
virtual consultations leveraging our telemedicine portal. More details on “Occupational Health and Safety” are available our website at
https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.
10b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
We identify occupational health and safety risks proactively, for all existing / new / modified activities, processes, products or services, and regulatory changes including routine and
non-routine activities. Risk assessment also includes quarterly evaluation of incidents that have occurred. Hazardous conditions present are identified and prioritized for elimination
and control. Once the identified hierarchy of controls is implemented, the risk assessment is revisited to assess the residual risks. As Infosys is an IT / ITES company, there are no
product risks but there are those related to the provision of services like ergonomics in work as well as those associated with the operation of utilities and employee commute.
Participation and consultation with relevant personnel involved in the activities is ensured during the process of risk assessments.
Risks are also assessed prior to and post the development of new buildings. Experience from previous projects and current operations are also considered. We continually monitor
our construction sites where infrastructure is being established.
More details on “Occupational Health and Safety” are available our website at
https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.
10c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y / N)
Yes. A process for incident management exists including incident reporting, investigation and implementation of appropriate corrective measures. Employees, contractual staff
and visitors are all expected to report incidents including near-miss and potential hazards in addition to accidents. Mechanisms have been implemented to report incidents which
includes an internal application (AHD), a global incident mail id and a location-specific mail id.
More details on “Occupational Health and Safety” are available our website at
https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.
3
4
7
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
4
8
11. Details of safety-related incidents during the current fiscal
Safety incident / number
Lost Time Injury Frequency Rate (LTIFR) (per one million-person
hours worked)
Total recordable work-related injuries
No. of fatalities
High consequence work-related injury or ill-health
(excluding fatalities)
* India operations
Category
Employees
Workers
Employees
Workers
Employees
Workers
Employees
Workers
Fiscal 2022*
Fiscal 2021*
0.143
0.780
1
19
0
1
0
0
0
0.932
0
21
0
0
0
0
12. Describe the measures taken by the Company to ensure a safe and healthy work place.
More details on “Occupational Health and Safety” are available our website at
https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.
13. Number of complaints on working conditions and health and safety made by employees and workers:
Fiscal 2022
Fiscal 2021
Filed during the year
Pending resolution at the end of year
Filed during the year
Pending resolution at the end of year
Working conditions
Health and safety
6
0
0
0
13
13
0
0
Infosys offers world-class workplaces for its employess globally. These workplaces have well-appointed, safe and hygienic work spaces and ambient conditions. There were queries
on COVID-related medical support which were handled and resolved by the COVID helpdesk.
A compilation of our world-class building standards is available at https://www.infosys.com/sustainability/documents/infosys-esg-databook-2020-21.pdf#page=24.
14. Assessments for the year for health and safety:
Our HSEMS is certified to ISO 45001:2018 standard. The scope of HSEMS is all activities, which are a part of our operations and employees working for and on behalf of the Company,
including deputees at client sites. Safety and well-being of our employees is accorded the highest priority. Our internal corporate certification audits and assessments team (CCAT)
conducts periodic assessments across Infosys locations annually.
Assessments for the year
Health and safety practices
Working conditions
% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
100
100
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of
health and safety practices and working conditions.
Safety at the workplace is one of the highest priorities at Infosys. We have always focused on building a culture of safety, emphasizing individual responsibility. Systems have been
established, including work permits, training, LOTO (lockout / tagout), safety inspections, operational controls, monitoring, audits and assessments, and others. Gaps, learnings,
deviations and findings, if any, are identified, controls implemented and tracked for effective closure.
A process for incident management exists including incident reporting, investigation and implementation of appropriate corrective measures. Employees, contractual staff and
visitors are all expected to report incidents including near-miss and potential hazards in addition to accidents. Mechanisms have been implemented to report incidents.
Occupational health and safety committees are established at each campus / office. The committees are chaired by the respective center heads with representation from employees,
senior management and cross-functional teams. The committee functions in line with local legislations, globally. The representation of employees in the committees is 100%.
The OH&S committees are responsible for conducting investigation of reported incidents, assisting in the development and implementation of the OH&S best practices to minimize
risks, and providing an opportunity to raise concerns and recommend solutions for various OH&S-related issues.
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) employee (Y / N) (B) worker (Y / N)
Leadership indicators
Yes
2. Provide the measures undertaken by the Company to ensure that statutory dues have been deducted and deposited by the value chain partners.
The Company conducts an audit of value chain partners to ensure timely deduction and deposit of statutory dues.
3. Provide the number of employees / workers having suffered high consequence work-related injury / ill-health / fatalities (as reported in Q11 of Essential indicators above),
who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment
Total no. of affected employees / workers
No. of employees / workers that are rehabilitated and placed
in suitable employment or whose family members have been
placed in suitable employment
Fiscal 2022
Fiscal 2021
Fiscal 2022
Fiscal 2021
Employees
Workers
0
1
0
0
0
0
0
0
4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or
termination of employment? (Yes / No)
Yes. Infosys emphasizes life-long learning and for this, we have introduced immersive learning platforms that allow employees to continuously upgrade their skills in their areas of
interest and continue to be available to employees, even after their retirement from Infosys, through Infosys Springboard. As a part of Infosys’ ESG Vision 2030, we have an ambition
to promote digital learning at scale. We have extended Infosys Springboard to enable continuous learning free of cost. This learning platform also addresses the learning needs of the
students, teachers, adults and professionals in a variety of domains including technical, behavioral, leadership and more. More details will be available in Infosys ESG Report 2021-22.
3
4
9
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
5
0
5. Details on assessment of value chain partners
Working conditions
Health and safety
% of value chain partners (by value of business done with such partners) that
were assessed
We have assessed 40% of our top 25 suppliers through an independent, external ESG
assessment.
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working
conditions of value chain partners
There were no significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners.
PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the processes for identifying key stakeholder groups of the entity
Essential indicators
Investors contributing capital are important stakeholders. We are privileged to share a strong relationship with investors based on a deep understanding of their expectations and
our commitment to consistently fulfil them. Client value is a part of C-LIFE, a reflection of our commitment to our clients. Employees enable us to create value for our clients and for
the organization and in turn, they enjoy fulfilling careers. Suppliers are our key stakeholders who enable us to deliver business value. Respecting the law of the land is an integral
part of the Infosys Code of Conduct, making governments and regulators important stakeholders. Our commitment to inclusive growth ensures the community is at the center of
our sustainable business practices and this is why the Infosys Foundation was established in 1996 to work in the areas of education, healthcare, rural development, destitute care,
disaster relief and the promotion of art and culture.
Our stakeholders are our investors, clients, employees, suppliers, government / regulators and the community.
2. List stakeholder groups identified as key for your company as described in Section B, Q. 9, and the frequency of engagement with each stakeholder group.
The details are provided on our website, at https://www.infosys.com/about/corporate-responsibility/our-stakeholders.html.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Leadership indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is
feedback from such consultations provided to the Board.
Consultation with stakeholders on E,S and G topics are delegated to the departments within the organization who are also responsible for engaging with stakeholders continually.
Infosys has a presence across multiple geographies, industries, services and products. The universe of our material concerns is complex and multi-layered, one that is deeply
intertwined with the decisions we implement and the value we seek to create through our business. Within the domains of E, S and G, we are constantly thinking about the most
important issues and preparing for them through these consultations.
We determined our most material issues through a data-driven and consultative exercise. Material topics were shortlisted and prioritized based on their impact on our stakeholders
and our business.
The quarterly ESG committee meeting provides us an opportunity to share feedback with the Board on these consultations.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances
as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.
Yes. We framed our ESG Vision 2030 on material topics from our stakeholder consultations. Material topics were shortlisted and prioritized based on their impact on our stakeholders
and our business. Our ESG priorities, as part of the Company’s ESG Vision 2030 can be accessed at
https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/esg-priorities.html.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable / marginalized stakeholder groups.
The Infosys Foundation was set up to support underprivileged sections of society, create opportunities and strive towards a more equitable society. The Foundation engages with the
community in a variety of areas that serve the vulnerable / marginalized stakeholder groups. For more information, visit https://www.infosys.com/infosys-foundation/ and read our
annual Foundation reports at https://www.infosys.com/infosys-foundation/about/reports.html.
PRINCIPLE 5: Businesses should respect and promote human rights
Essential indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:
Employees
Permanent
Other than permanent
Total employees
3
5
1
Fiscal 2022
Fiscal 2021
Total (A)
No. of employees / workers
covered (B)
% (B / A)
Total (C)
No. of employees /
workers covered (D)
% (D / C)
3,14,015
25,470
3,39,485
3,14,015
25,470
3,39,485
100
100
100
2,59,619
21,668
2,81,288
2,59,619
21,668
2,81,288
100
100
100
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
5
2
2. Details of employees and workers in terms of minimum wages paid:
All employees and contractors have been paid more than /= minimum wage in accordance with the laws of the land in the countries we operate.
3. Details of remuneration / salary / wages, in the following format:
Male
Female
Number
Median remuneration / salary / wages of
respective category in `
Number
Median remuneration / salary / wages of
respective category in `
Board of Directors (BoD)
Key Managerial Personnel
Employees other than BoD and KMP
Annexure 3 of Board’s report include
(1) Ratio of remuneration to MRE of individual member of Board
(2) Overall MRE details including KMP and employees at Infosys Limited
Refer to Annexure 3 of Board’s report. (1)(2)
4. Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes / No)
Yes
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization envisages an open-door policy. Employees also have
access to several forums where they can highlight matters or concerns faced at the workplace. This is achieved through a well-established and robust grievance resolution
mechanism comprising resolution hubs.
Resolution hubs adhere to the principles of natural justice, confidentiality, sensitivity, non-retaliation and fairness while addressing concerns. The concerns are handled
with sensitivity, while delivering timely action and closure. A detailed investigation process ensures fairness for all involved, with an opportunity to present facts and any
material evidence.
More details are available on our website, at https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/resolution-hubs.html.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 6. Number of complaints on the following made by employees and workers:
Fiscal 2022
Filed during the
year
Pending resolution
at the end of year
Remarks
Filed during the
year
Fiscal 2021
Pending
resolution at the
end of year
Remarks
Sexual harassment
25
0
Discrimination at workplace
Child labor
Forced labor / Involuntary labor
Wages
Other human rights-related issues *
0
Nil
Nil
Nil
742
NA
Nil
Nil
Nil
18 (1)
All cases were
reviewed and closed
Among the workplace
grievances reported
by employees in
fiscal 2022, there are
no substantiated
issues with respect
to discrimination
under the purview of
protected categories
as outlined in the
Human Rights
indicators.
Nil
Nil
Nil
Nil
25
0
NA
Nil
Nil
Nil
906
NA
Nil
Nil
Nil
0
All cases were
reviewed and closed
Among the workplace
grievances reported
by employees in
fiscal 2021, there are
no substanciated
issues with respect
to discrimination
under the purview of
protected categories
as outlined in the
Human Rights
indicators.
Nil
Nil
Nil
Nil
* Employees have the opportunity to report workplace grievances such as concerns on performance management (rating, role change, compensation and benefits), issues concerning manager or unit,
interpersonal conflicts, policy eligibility etc. to the Company’s grievance redressal committee (HEAR). A total of 742 concerns falling under these broad categories were reported in fiscal 2022 and
reviewed independently by the committee.
(1) As on May 17, 2022
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)
3
5
3
Number of cases pending for more than 90 days
In fiscal 2022
11
2
0
1
8
0
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
5
4
Employee coverage through workshops or awareness programs conducted
on sexual harassment
• Mandatory onboarding sessions for new hires 40,750+ laterals and 60,405 freshers covered
through the year
• Awareness and communication extended to all employees – 12+ mailers
•
Segmented sessions for leaders, managers, employees 1,110+ employees covered
Nature of action taken by the employer or District Officer
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 committees of the Company. During fiscal 2022, two complaints were received, involving respondents from third parties. These complaints were
addressed by the internal committees of the third parties.
7. Measures taken to prevent adverse consequences to the complainant in discrimination and harassment cases
Retaliation is against our values. All complaints can be made without fear of reprisal and with the assurance that the Company stands with you. Threats, retribution, or retaliation
against any person who has in good faith reported a violation or a suspected violation of law, this Code or other Company policies, or against any person who is assisting in any
investigation or process with respect to such a violation is prohibited by the Company.
Resolution hubs adhere to the principles of natural justice, confidentiality, sensitivity, non-retaliation and fairness while addressing concerns. The concerns are handled with
sensitivity, while delivering timely action and closure. A detailed investigation process ensures fairness for all involved, with an opportunity to present facts and any material
evidence.
8. Do human rights requirements form part of your business agreements and contracts? (Yes / No)
Yes
9. Assessments for the year:
Child labor
Forced / involuntary labor
Sexual harassment
Discrimination at workplace
Wages
Others – please specify
% of your plants and offices that were assessed (by entity or statutory authorities or
third parties)
We have commissioned a human rights assessment by an independent external agency
covering our India operations, which represents more than 83% of our employee strength
globally. The topics covered include child labor, forced labor, harassment, discrimination,
work-life balance, training and education, occupational health and safety, environment
and more.
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above
There were no significant risks / concerns arising from the human rights assessments.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Leadership indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization envisages an open-door policy. Employees also have
access to several forums where they can highlight matters or concerns faced at the workplace. This is achieved through a well-established and robust grievance resolution
mechanism comprising resolution hubs.
More details are available on our website at https://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/resolution-hubs.html. and Infosys ESG report 2021-22
2. Details of the scope and coverage of any human rights due diligence conducted, including in the value chain.
We have commissioned a human rights assessment by an independent external agency covering our India operations, which represents more than 83% of our employee strength
globally. The areas covered include child labor, forced labor, harassment, discrimination, work-life balance, training and education, occupational health and safety, environment and
more. For more information, read Infosys ESG Report 2021-22.
In the supply chain, we undertook an ESG assessment of our top 25 suppliers. As a part of this exercise, we developed an assessment protocol based on the Infosys Supplier Code of
Conduct covering governance, ethics and compliance with the law, fair business practices, labor practices and human rights, health and safety and environment. More details will be
available in Infosys ESG Report 2021-22.
3. Is the premise / office of the entity accessible to differently-abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?
Yes. All our campuses have accessible workplaces and we build necessary accommodations for all our employees and visitors. Refer to response to question 3 of principle 3 in this
report.
4. Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners) that were
assessed
Sexual harassment
Discrimination at workplace
Child labor
Forced labor / involuntary labor
Wages
Others – please specify
40% of the top 25 suppliers were assessed during the year.
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.
There were no significant risks / concerns arising from the assessments.
3
5
5
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
5
6
PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format
Essential indicators
Parameter
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C)
Total energy consumption (A+B+C)
Energy intensity per rupee of turnover (Total energy consumption / turnover in Rupees)
Energy intensity (optional) – the relevant metric may be selected by the entity
Fiscal 2022
6,15,063 GJ
35,413 GJ
Nil
6,50,476 GJ
5.35 GJ / ` cr
NA
Fiscal 2021
6,26,311 GJ
45,349 GJ
Nil
6,71,660 GJ
6.69 GJ / ` cr
NA
Note: Indicate if any independent assessment / evaluation / assurance has been carried
out by an external agency? (Y / N) If yes, name of the external agency
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting
Services LLP
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India?
(Y / N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Not applicable
3. Provide details of the following disclosures related to water:
Parameter
(i) Surface water
(ii) Groundwater
(iii) Third-party water
(iv) Seawater / desalinated water
(v) Others (rainwater)
Total volume of water withdrawal (i + ii + iii + iv + v)
Total volume of water consumption
Water intensity per rupee of turnover (Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity
Fiscal 2022 (in kl)
Fiscal 2021 (in kl)
NA
1,12,910
11,29,818
NA
69,656
13,12,384
13,12,384
10.79 kl / ` cr
NA
NA
1,42,081
10,72,258
NA
79,293
12,93,632
12,93,632
12.88kl / ` cr
NA
Note: Indicate if any independent assessment / evaluation / assurance has been carried
out by an external agency? (Y / N) If yes, name of the external agency
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting
Services LLP
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 4. Has the entity implemented Zero Liquid Discharge policy? If yes, provide details of its coverage and implementation.
Yes. All sewage generated on Infosys campuses is treated in the in-house sewage treatment plants and the recycled water is used for irrigation, HVAC and flushing purposes. In some
of our smaller leased offices, with limited space or lesser operational control, the wastewater is discharged into municipal sewers, which undergo further treatment.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format
Parameter
NOx
SOx
Particulate matter (PM)
Persistent organic pollutants (POP)
Volatile organic compounds (VOC)
Hazardous air pollutants (HAP)
Others – please specify
Note: Indicate if any independent
assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency.
Please specify unit
Kg / month
Kg / month
Kg / month
NA
NA
NA
NA
Fiscal 2022
22,907.32
2,566.01
3,899.34
NA
NA
NA
NA
Fiscal 2021
14,234.66
4,912.99
4,696.56
NA
NA
NA
NA
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity, in the following format :
Parameter
Please specify unit
Fiscal 2022
Fiscal 2021
Total Scope 1 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)
Total Scope 2 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)
Total Scope 1 and Scope 2 emissions per
rupee of turnover
Total Scope 1 and Scope 2 emission
intensity (optional) – the relevant metric
may be selected by the entity
Note: Indicate if any independent
assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency.
3
5
7
tCO2 e
tCO2 e
tCO2 e / ` cr
NA
1) CO2 – 2641.43
2) PFC/HFC – 6291.83
3) SF6 – 31.92
Total Scope 1 emission – 8,965
1) CO2 – 3386.38
2) PFC/HFC – 5276.47
3) SF6 – 14.82
Total Scope 1 emission – 8,678
51,717
0.50
NA
68,673
0.77
NA
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
5
8
7. Does the entity have any project related to reducing greenhouse gas emission? If yes, provide details.
Taking advantage of unoccupied offices due to employees working from home, retrofit projects on lighting, air conditioning and 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 has been 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.
Energy-efficiency retrofits have helped us reduce connected load by 34.81 MW across Infosys since 2008. Retrofit projects were taken up for the following reasons: resource
conservation, end-of-life equipment, indoor environment quality improvement, and technology upgrade.
In fiscal 2022, our new buildings in Bengaluru, Mysuru, Thiruvananthapuram and Indianapolis were awarded the LEED Platinum certification from the US Green Building
Council. We also received IGBC (Indian Green Building Council) Platinum certification for our buildings in Chennai and Bhubaneswar. With this, we now have 45 projects
at Infosys with the highest level of green building certification, spanning a total area of 28.61 million sq.ft. An additional 2.1 million sq.ft. of our projects is currently
undergoing green building certification.
8. Provide details related to waste management by the entity, in the following format:
Parameter
Plastic waste (A)
E-waste (B)
Biomedical waste (C)
Construction and demolition waste (D)
Battery waste (E)
Radioactive waste (F)
Other hazardous waste (Oil-soaked cotton waste, DG filters, paint cans, chemical cans,
paint residue, oil sludge, DG chimney soot, coolant oil and used oil) (G)
Other non-hazardous waste generated (Metal, wood, paper / cardboard, textile waste,
kitchen oil, mixed waste, garden waste, glass waste, thermocol, rubber, STP sludge) (H)
Total (A + B + C + D + E + F + G + H)
Fiscal 2022
Fiscal 2021
Total waste generated (in metric tonnes)
114.62
863.67
43.58
3,087.65
132.02
0.008
55.11
6,882.24
8,091.25
55.99
361.94
31.92
2,597.5
97.42
0
57.38
6,097.60
6,702.25
For each category of waste generated, total waste recovered through recycling, reusing or other recovery operations (in metric tonnes)
Category of waste
(i) Recycled
(ii) Reused
(iii) Other recovery operations
Total
Fiscal 2022
Fiscal 2021
9,512.77
728.72
0
10,241.5
6,116.46
332.65
0
6,449.11
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Category of waste
(i) Incineration
(ii) Landfilling
(iii) Other disposal operations
Total
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Fiscal 2022
Fiscal 2021
49.88
886.18
0
936.06
39.89
474.34
0
514.23
Note: Indicate if any independent assessment / evaluation / assurance has been carried
out by an external agency? (Y / N) If yes, name of the external agency.
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting
Services LLP.
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and
toxic chemicals in your products and processes and the practices adopted to manage such wastes.
Our waste management approach is based on the philosophy of Reduce, Reuse and Recycle. We seek to uphold our ambition of zero waste to landfills through active minimization
combined with technology investment in recycling and streamlining systems and processes. With our efforts, we contribute to a circular economy and convert waste to resource.
Refer to the Waste management section of Infosys ESG Report 2021-22.
10. If the entity has operations / offices in / around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity
hotspots, forests, coastal regulation zones) where environmental approvals are required, please specify details in the following format:
Our campuses are built on government-approved land in industrial zones and do not fall within or are adjacent to protected areas or high-biodiversity areas.
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:
Refer to Infosys - Corporate Responsibility | Approvals
Name and brief details of project
EIA Notification No.
Date
Whether conducted by
independent external agency
(Yes / No)
Results
communicated in
public domain (Yes
/ No)
Relevant web-link
Kolkata campus
1628/EN/T-II-1/067/2019 17-09-2021
Yes
Yes
environmental-clearance-
kolkata-sep2021.pdf (infosys.
com)
12. Is the entity compliant with the applicable environmental law / regulations / guidelines in India; such as the Water (Prevention and Control of Pollution) Act,
Air (Prevention and Control of Pollution) Act, Environment Protection Act and rules thereunder (Y / N). If not, provide details of all such non-compliances in
the following format:
Yes. We are compliant with the applicable environmental law / regulations / guidelines in India.
3
5
9
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
6
0
Leadership indicators
1. Provide break-up of the total energy consumed into renewable and non-renewable sources, in the following format:
Parameter
From renewable sources
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C)
Total energy consumption (A+B+C)
From non-renewable sources
Total electricity consumption (D)
Total fuel consumption (E)
Energy consumption through other sources (F)
Total energy consumption (D+E+F)
Note: Indicate if any independent assessment / evaluation /
assurance has been carried out by an external agency? (Y / N)
If yes, name of the external agency
Fiscal 2022
2,66,119 GJ
Nil
Nil
2,66,119 GJ
3,48,944 GJ
35,413 GJ
Nil
3,84,357 GJ
Fiscal 2021
2,87,014 GJ
Nil
Nil
2,87,014 GJ
3,39,297 GJ
45,349 GJ
Nil
3,84,646 GJ
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 2. Provide the following details related to water discharged:
Parameter
Fiscal 2022
Fiscal 2021
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
No treatment
With treatment – please specify level of treatment
(ii) To Groundwater
No treatment
With treatment – please specify level of treatment
(iii) To Seawater
No treatment
With treatment – please specify level of treatment
(iv) Sent to third-parties
No treatment
With treatment – please specify level of treatment
(v) Others
No treatment
With treatment – please specify level of treatment
Total water discharged (in kilolitres)
Note: Indicate if any independent assessment / evaluation /
assurance has been carried out by an external agency?
(Y / N) If yes, name of the external agency
Waste water generated is treated in sewage treatment plants and reused for purposes like landscaping, HVAC
applications and flushing. There is no discharge in any of these categories.
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP.
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility / plant located in areas of water stress, provide the following
information: (i) Name of the area (ii) Nature of operations (iii) Water withdrawal, consumption and discharge in the following format (ii) Nature of operations
We recognize that we are working in countries which are water-stressed zones. We continue our efforts in water conservation through a combination of technology
interventions, rainwater harvesting, recycling and reuse of waste water, communication and employee engagement. We have over the years succeeded in recharging
groundwater aquifers through the deep injection wells and lakes we have created and this has benefitted local communities as well.
The information on consumption provided above is a consolidation of our water consumption across the globe. Going forward, we will report details of water withdrawal
and consumption from water-stressed zones in the format prescribed by the BRSR.
3
6
1
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
6
2
4. Please provide details of total Scope 3 emissions and its intensity for every rupee of turnover
Parameter
Total Scope 3 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)
Total Scope 3 emissions per rupee of
turnover
Total Scope 3 emission intensity (optional)
– the relevant metric may be selected by
the entity
Note: Indicate if any independent
assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency
Unit
tCO2e
tCO2e / ` cr
NA
Fiscal 2022
1,83,595
1.51
NA
Fiscal 2021
2,13,514
2.13
NA
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP.
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential indicators above, provide details of significant direct and indirect impact of the entity
on biodiversity in such areas along with prevention and remediation activities.
Not applicable
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions /
effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format:
Sr. No
Initiative undertaken
Details of the initiative (web link, if any, may be provided along with
summary)
Outcome of the initiative
Our vision for the environment is to “Serve the preservation of our planet by shaping and sharing technology solutions”.
We adopt, invent and encourage smarter ways to mitigate GHG emissions, reduce energy consumption and manage water and waste, to make our planet stronger by consistently
embracing clean tech in our operations and client solutions, thereby minimizing the impact on nature.
Refer to ESG Report 2021-22 to know more about initiatives and technology solutions to improve resource efficiency, or reduce impact due to emissions / effluent discharge / waste
generated. Also, refer to our microsite https://www.infosys.com/about/corporate-responsibility/environmental.html.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 7. Does the entity have a business continuity and disaster management plan? Give details in 100 words / web link
Infosys has a highly resilient Business Continuity Management System (BCMS) called Phoenix which is certified ISO 22301:2019 Security and Resilience — Business Continuity
Management Systems. This program ensures seamless continuity of business and utmost safety of employees and organization assets, while continuously meeting client
expectations and helping Infosys to be seen as a leader in this area.
The BCMS program provides a robust framework for planning, establishing, implementing, operating, monitoring, reviewing, maintaining and continually improving BCMS across
Infosys and its subsidiaries as per the global BCMS strategy.
Comprehensive business continuity plans are created at three levels covering the business functions, locations and accounts. Integrated into our Enterprise Risk Management
program, the BCMS plans guide our typical response to events, such as catastrophes, natural or human-made disasters, which could disrupt or severely constrain our operations.
This covers various crisis scenarios as part of detailed risk assessments for functions, locations and accounts which are documented with mitigation plans along with controls put in
place. This has ensured a highly resilient management system that has been continuously validated through tests and exercises, and various incidents, which have been successfully
tackled without any major business continuity or employee safety impacts. The best example of this has been the unprecedented global COVID-19 pandemic over the past two
years.
An efficient business continuity management policy has allowed our Company to maintain status quo as quickly and as cost effectively as possible during disasters and pandemics.
It has also helped in minimizing downtime and achieving sustainable improvements in business continuity and regulatory compliance.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the
entity in this regard.
None
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.
40% of the top 25 suppliers were assessed during the year.
3
6
3
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
6
4
PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a
manner that is responsible and transparent
1. a. Number of affiliations with trade and industry chambers / associations.
Refer to response below
Essential indicators
b. List the top 10 trade and industry chambers / associations you are a member of / are affiliated to, on the basis of no. of members.
S. No. Name of the trade and industry chambers / associations
Reach of trade and industry chambers / associations
(State / National)
1
2
3
4
5
6
7
8
9
National Association of Software and Services Companies (NASSCOM)
Confederation of Indian Industry (CII)
Federation of Indian Chambers of Commerce and Industry (FICCI)
Alliance for an Energy Efficient Economy (AEEE), India
Indian Green Building Council (IGBC)
National and Karnataka Safety Council
United States Green Building Council (USGBC)
World Economic Forum (WEF)
US Chamber of Commerce
10
Confederation of British Industry
National
National
National
National
National
National
International
International
International
International
2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from
regulatory authorities
None
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation 1. Details of public policy positions advocated by the Company:
Leadership indicators
Infosys’ approach to achieving our government, policy and community objectives focuses on engaging ecosystems at the national, regional and local levels. To this end, across each
of the Company’s key markets — including, but not limited to, the US, Canada, Europe, Australia and India, Infosys focuses on developing and maintaining partnerships with relevant
government officials, business organizations, technology industry associations, educational institutions, and community organizations for the purpose of developing mutually-
beneficial partnerships. For more details refer to Infosys Integrated Annual Report 2021-22.
PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
Essential indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year
Not applicable – we have no SIA notification
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:
Not applicable
3. Describe the mechanisms to receive and redress grievances of the community.
The Infosys Foundation works closely with the community in identified areas of contribution in the domains of education, healthcare, destitute care, rural development, art and culture,
and disaster relief. Within its areas of work, the Foundation has robust mechanisms to assess the impact of projects on intended beneficiaries. These mechanisms range from one-on-
one and group discussions with beneficiaries to independent external assessments, among others, and provide ample opportunity to receive and redress grievances of the intended
beneficiaries.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers
Directly sourced from MSMEs / small producers
Sourced directly from within the district and neighboring districts
Fiscal 2022
9.79%
72%
Fiscal 2021
8.9%
71%
3
6
5
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation
3
6
6
Leadership indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential indicators above)
Not applicable
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies
S. No
1
2
3
4
State
Karnataka
Odisha
Tamil Nadu
Karnataka
Aspirational district
Amount spent (in `)
Kalaburagi
Rayagada
Virudhunagar
Raichur
10,25,000
10,00,000
13,70,974
1,75,01,626
Note: In fiscal 2022, we have covered four aspirational districts. However, since 2015 we have in total covered 32 aspirational districts
3. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized / vulnerable groups? (Yes / No)
Yes. Our responsible supply chain and supplier diversity policy guides our efforts.
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current fiscal), based on traditional knowledge
Not applicable
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved
Not applicable
6. Details of beneficiaries of CSR projects:
S. No.
CSR project
No. of persons benefitted from CSR
projects (1)
% of beneficiaries
from vulnerable
and marginalised
groups(2)
Refer to Annexure 6 to the Board’s report for the 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.
Around 73 lakh beneficiaries
–
(1) For projects which are under way eg: construction projects, we have included the number of persons expected to benefit from the project annually.
(2) There is no project-wise tracking on these details available for fiscal 2022.
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Essential indicators
We are committed to surpassing client expectations consistently. We have robust mechanisms to track and respond to customer complaints and feedback in the delivery of our
services. Our latest annual client survey indicates that a large set of clients are delighted with Infosys, sustaining the healthy positive client sentiment attained over the years. Client
sentiment around our resilience, agility, client centricity, excellence in execution, quality of deliverables, base delivery, tools, and methodologies, is extremely positive.
2. Turnover of products / services as a percentage of turnover from all products / services that carry information about Environmental and social parameters relevant to the
product, Safe and responsible usage, Recycling and / or safe disposal.
Not applicable
3. Number of consumer complaints in respect of data privacy, advertising, cybersecurity, delivery of essential services, restrictive trade practices, unfair trade practices
We do not have any consumer complaints in respect of data privacy, advertising, cybersecurity, delivery of essential services, restrictive trade practices, unfair trade practices.
4. Details of instances of product recalls on account of safety issues
Not applicable
5. Does the entity have a framework / policy on cybersecurity and risks related to data privacy? (Yes / No) If yes, provide web-link of the policy.
Yes. Infosys has a holistic and comprehensive cybersecurity framework – SEED, which is aligned to NIST’s CyberSecurity Framework (CSF) and is supported by supplementary policies,
processes, procedures and standards aimed at achieving and sustaining the enterprise-level information security objectives.
https://www.infosys.com/about/corporate-responsibility/governance/information-management.html
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cybersecurity and data privacy of
customers, re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.
None
3
6
7
Infosys Integrated Annual Report 2021-22Introduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsStrategy reviewApproaching value creation 3
6
8
Leadership indicators
1. Channels / platforms where information on products and services of the Company can be accessed
Refer to https://www.infosys.com/services.html
2. Steps taken to inform and educate consumers, especially vulnerable and marginalised consumers, about safe and responsible usage of products and services.
Not applicable
3. Mechanisms in place to inform consumers of any risk of disruption / discontinuation of essential services.
Refer to principle 6, question 7 of Leadership indicators, in this report.
4. Does the Company display product information on the product over and above what is mandated as per local laws? Not applicable
Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of the entity or the entity as a
whole? (Yes / No)
Yes. We carry out surveys to gauge consumer satisfaction for our major services.
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 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.
Our latest annual client survey indicates that a large set of clients, are delighted with Infosys, sustaining the healthy positive client sentiment attained over the years. Client sentiment
around our resilience, agility, client centricity, excellence in execution, quality of deliverables, base delivery, tools, and methodologies, is extremely positive.
Our digital narrative is resonating well and clients’ willingness to partner with Infosys has improved considerably over the years. Our clients are happy with their experience on our
cloud services, the execution approach, methodologies, and tools.
This reflects in us achieving ~57% digital revenues in fiscal 2022, growing at 41.2% in CC. Our digital revenues for fiscal 2022 is ` 69,404 crore. Within digital, cloud is growing faster
and with Cobalt, our cloud capabilities have seen significant traction with clients.
5. Provide the following information relating to data breaches:
a. Number of instances of data breaches along with impact
In fiscal 2022, there were no substantiated complaints received concerning breaches of customer privacy from outside parties and regulatory authorities. There was only one breach
identified during the reporting period, outside the organization and where users were notified of the breach.
b. Percentage of data breaches involving personally identifiable information of customers
0%
Infosys Integrated Annual Report 2021-22Strategy reviewIntroduction Delivering valueGovernanceBRSRStatutory reportsFinancial statementsApproaching value creation Independent Assurance Statement to Infosys Limited on Select Non-Financial
Sustainability Disclosures in the Integrated Report for the Financial Year 2021-22
To
The Management of Infosys Limited
Infosys Limited,
44/97A, 3rd Cross,
Electronic City, Hosur Road,
Bengaluru 560100
Introduction
We (‘KPMG Assurance and Consulting Services LLP’, or ‘KPMG’) have been engaged by Infosys Limited (‘Infosys’ or ‘the Company’) for the
purpose of providing an independent assurance on the non-financial sustainability disclosures presented in the Integrated Report (‘the
Report’) for the reporting period covering 1st April 2021 to 31st March 2022 (“the Year” or “the Reporting Period’’). Our responsibility was
to provide assurance on the Report content as described in the scope, boundary, and limitations.
Reporting Criteria
The Company applies non-financial performance criteria for developing its report derived from the following:
The International Integrated Reporting Council’s Framework.
•
• Global Reporting Initiative (GRI) Standards “in accordance - Comprehensive option”.
•
•
SASB (Sustainability Accounting Standards Board) Standard for Software & IT Services.
Principles of National Guidelines on Responsible Business Conduct as part of Business Responsibility and Sustainability Report (BRSR).
Assurance Standards Used
We conducted our assurance in accordance with
• Assurance requirements of International Federation of Accountants’ (IFAC) International Standard on Assurance Engagement (ISAE)
3000 (revised) - Assurance Engagements Other than Audits or Reviews of Historical Financial Information, to select non-financial
sustainability disclosures in the Report.
– Under this standard, we have reviewed the information presented in the Report against the characteristics of relevance,
completeness, reliability, neutrality, and understandability.
– Limited assurance consists primarily of enquiries and analytical procedures. The procedures performed in a limited assurance
engagement vary in nature and timing and are less in extent than for a reasonable assurance engagement.
– Reasonable assurance is a high level of assurance but, it is not a guarantee that it will always detect a material misstatement when
it exists.
•
‘Reasonable Assurance’ as per International Federation of Accountants’ (IFAC) International Standard on Assurance Engagements
(ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements, for the GHG emissions data.
– A reasonable assurance engagement in accordance with ISAE 3410 involves performing procedures to obtain evidence about the
quantification of emissions and related information in the Report.
– The nature, timing and extent of procedures selected depend on our judgment, including the assessment of the risks of material
misstatement of the GHG Statement whether due to fraud or error.
369
Infosys Integrated Report 2021-22 Scope, Boundary, and Limitations
•
The scope of assurance covers select non-financial sustainability disclosures in Infosys IR r eport FY 2021-22, based on GRI Standards
and SASB Standard as mentioned in the table below.
The reporting scope and boundary covers Infosys’ global operations. The following sites were selected as sample for the purpose of
the assurance.
•
1. Corporate Office, Bengaluru
2. SEZ Delivery Centre, Hyderabad
3. Delivery Centre, Mysuru
4. Delivery Centre, Mangaluru
5. Delivery Centre, Hubli
6. Delivery Centre, Jaipur
7. Delivery Centre, Indore
8. Delivery Centre, Nagpur
9. Melbourne Site, Australia
10. Indianapolis Site, USA
•
Following selected non-financial disclosures in ‘the Report’ were subjected to reasonable assurance:
GRI Standards: Topic Specific Standards
Environmental
Emissions: 305-1,305-2, 305-3#, 305-4
# The data for 305-3 (Scope-3 GHG Emissions) is restricted to Business travel, Employee commute, Transmission and distribution losses,
Upstream leased assets, Waste emissions, Work from home emissions, and Capital goods.
•
Following selected non-financial sustainability disclosures in ‘the Report’ were subjected to limited assurance:
GRI Standards: Universal Standard
• Management Approach: 103-1 to 103-3.
GRI Standards: Topic Specific Standards: Environmental
Energy: 302-1 , 302-2 , 302-3, 302-4.
•
• Water (2018): 303-3, 303-4, 303-5.
Emissions: 305-5, 305-6, 305-7.
•
GRI Standards: Topic Specific Standards: Social
• Waste (2020): 306-3, 306-4, 306-5.
•
Supplier Environmental Assessment: 308-1, 308-2
Employment: 401-1, 401-2, 401-3.
Labor/Management Relations: 402-1
•
•
• Occupational Health and Safety (2018): 403-1, 403-2, 403-9.
•
• Diversity and Equal Opportunity: 405-1
• Non-Discrimination: 406-1.
•
Freedom of Association and Collective Bargaining: 407-1
Training and Education: 404-1, 404-2, 404- 3.
Forced or Compulsory Labor: 409-1
Security Practices: 410-1
• Child Labor: 408-1
•
•
• Human Rights Assessment: 412-1, 412-2, 412-3
•
•
• Customer Privacy: 418-1
Local Communities: 413-1, 413-2
Supplier Social Assessment: 414-1, 414-2
SASB Standard for Software and IT Services Industry: Sustainability Disclosure Topics & Accounting Metrics
•
Environmental Footprint of Hardware Infrastructure: TC-Sl-
130a.1, and TC-SI- 130a.2.
• Data Privacy and Freedom of Expression: TC-Sl-220a.2, TC-Sl-
• Data Security: TC-Sl-230a.1.
•
Recruiting and managing a Global, Diverse and Skilled
Workforce: TC-Sl-330a.1, TC-SI- 330a.2, and TC-Sl-330a.3.
220a.4,
370
Infosys Integrated Report 2021-22 Limitations
The assurance scope excludes the following:
• Data related to Company’s financial performance.
• Data and information outside the defined reporting period.
•
The Company’s statements that describe the expression of opinion, belief, aspiration, expectation, aim to future intention provided
by the Company, and assertions related to Intellectual Property Rights and other competitive issues.
Strategy and other related linkages expressed in the Report.
• Data review was limited to the sites mentioned above.
•
• Mapping of the Report with reporting frameworks other than those mentioned in Reporting Criteria above.
• Aspects of the Report other than those mentioned under the scope above.
Assurance Procedures
Our assurance process involves performing procedures to obtain evidence about the reliability of specified disclosures. The nature,
timing, and extent of procedures selected depend on our judgment, including the assessment of the risks of material misstatement
of the selected sustainability disclosures whether due to fraud or error. In making those risk assessments, we have considered internal
controls relevant to the preparation of the Report to design assurance procedures that are appropriate in the circumstances.
Our assurance procedures also included:
• Assessment of the Company’s reporting procedures regarding their consistency with the respect to reporting criteria.
• Understanding the appropriateness of various assumptions, estimations, and materiality thresholds used by the Company for data
analysis.
Evaluating the appropriateness of the quantification methods used to arrive at the sustainability disclosures presented in the Report.
Review of systems and procedures used for quantification, collation, and analysis of sustainability disclosures included in the Report.
•
•
• Discussions with the personnel at the corporate and business unit level responsible for the data and information presented in the
Report.
• Assessment of data reliability and accuracy.
Appropriate documentary evidences were reviewed to support our conclusions on the information and data verified. Where such
documentary evidence could not be collected due to the sensitive nature of the information, our team reviewed the same with the
relevant authority at respective sites and at the corporate office.
Conclusions
We have reviewed the selected non-financial sustainability disclosures in the Integrated Report of Infosys Limited for the reporting
period from 01st April 2021 to 31st March 2022. We have provided our observations to the Company in a separate management letter.
These, do not, however, affect our conclusions regarding the Report. Based on our review and procedures performed and in line with the
boundary, scope, and limitations as described above, we conclude that:
Reasonable Assurance:
The selected non-financial sustainability disclosures which have been subjected to reasonable assurance procedures as defined under
the scope of assurance, are fairly stated, in all material aspects, and are in line with the reporting requirements of the GRI Standards.
Limited Assurance:
Nothing has come to our attention that causes us not to believe that the sustainability data and information subject to limited assurance,
as per the scope of assurance mentioned above, presented in the Report is appropriately stated, in material aspects, and in line with the
reporting requirements of the GRI Standards and SASB Standard for Software & IT Services.
Independence
The assurance was conducted by a multidisciplinary team including professionals with suitable skills and experience in auditing
environmental, social, and economic information as per the requirements of ISAE 3000 (Revised) and ISAE 341O standards .
Our work was performed in compliance with the requirements of the IFAC Code of Ethics for Professional Accountants, which
requires, among other requirements , that the members of the assurance team (practitioners) be independent of the assurance client,
in relation to the scope of this assurance engagement, including not being involved in writing the Report. The Code also includes
detailed requirements for practitioners regarding integrity, objectivity, professional competence , and due care, confidentiality,
and professional behavior. KPMG has systems and processes in place to monitor compliance with the Code and to prevent conflicts
regarding independence. The firm applies ISQC-1, and the practitioner complies with the applicable independence and other ethical
requirements of the IESBA Code.
371
Infosys Integrated Report 2021-22 Responsibilities
Infosys Limited is responsible for developing the Report contents. The Company is also responsible for the identification of material
sustainability topics, establishing and maintaining appropriate performance management and internal control systems, and derivation
of performance data reported. This statement is made solely to the Management of Infosys Limited in accordance with the terms of our
engagement and as per the scope of assurance. Our work has been undertaken so that we might state to the Company those matters
for which we have been engaged to state in this statement and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company for our work, for this report, or for the conclusions expressed in this
independent assurance statement. The assurance engagement is based on the assumption that the data and information provided to us
is complete and true. We expressly disclaim any liability or co responsibility for any decision a person or entity would make based on this
assurance statement. Our report is released to Infosys Limited on the basis that it shall not be copied, referred to or disclosed, in whole or
in part, without our prior written consent. By reading this assurance statement, stakeholders acknowledge and agree to the limitations
and disclaimers mentioned above.
Sd/-
Anand S. Kulkarni
Technical Director
KPMG Assurance and Consulting Services LLP
Date·: 21-May-2022
372
Infosys Integrated Report 2021-22 Dear Member,
You are cordially invited to attend the 41st Annual General Meeting of the members of Infosys Limited (“the Company”) to be held on
Saturday, June 25, 2022 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 21, 2022
Very truly yours,
Sd/-
Nandan M. Nilekani
Chairman
Enclosures:
1. Notice of the 41st 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 41st Annual General Meeting
Notice is hereby given that the 41st Annual General Meeting (AGM) of the members of Infosys Limited will be held on Saturday, June 25,
2022, 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, 2022 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 ₹ 16 per equity share for the year ended March 31, 2022.
Item no. 3 – Appointment of Nandan M. Nilekani as a director, liable to retire by rotation
To appoint a director in place of Nandan M. Nilekani (DIN: 00041245), 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. Nandan M. Nilekani, who was initially appointed on August 24, 2017 and last appointed on June 22, 2019,
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.
To consider and if thought fit, to 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, the approval
of members of the Company, be and is hereby accorded to reappoint Nandan M. Nilekani (DIN: 00041245) as a director, who is liable
to retire by rotation.
Item no. 4 – Reappointment of Deloitte Haskins & Sells LLP, Chartered Accountants, as statutory auditors
of the Company
To consider and if thought fit, to pass the following resolution, as an ordinary resolution:
RESOLVED THAT pursuant to Sections 139, 141, 142 and all other applicable provisions, if any, of the Companies Act, 2013, read with
the Companies (Audit and Auditors) Rules, 2014, (including any statutory modification(s) or re-enactment thereof) and pursuant to
the recommendations of the audit committee and the Board of Directors of the Company, Deloitte Haskins & Sells LLP, Chartered
Accountants (Firm registration number: 117366 W/W-100018) (“Deloitte”) be and are hereby reappointed as the Statutory Auditors of
the Company for the second term of five consecutive years, who shall hold office from the conclusion of this 41st AGM till the conclusion
of the 46th AGM to be held in the year 2027, at such remuneration as may be determined by the Board of Directors of the Company
(including its committees thereof).
RESOLVED FURTHER THAT the Board of Directors of the Company, (including its committees thereof), be and are hereby authorized
to do all such acts, deeds, matters and things as may be deemed proper, necessary, or expedient, including filing the requisite forms
or submission of documents with any authority or accepting any modifications to the clauses as required by such authorities, for the
purpose of giving effect to this resolution and for matters connected therewith, or incidental thereto.
Special business
Item no. 5 – Reappointment of D. Sundaram 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, approval and recommendation of the nomination and remuneration committee, and that of the Board, D. Sundaram
(DIN: 00016304), who holds office as an independent director up to July 13, 2022 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 14, 2022 up to July 13, 2027.
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.
2 | Notice of the 41st Annual General Meeting
Infosys Limited Item no. 6 – Reappointment of Salil S. Parekh, Chief Executive Officer and Managing Director of the
Company, and approval of the revised remuneration payable to him
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT pursuant to the provisions of Sections 196, 197, 198, 203, Schedule V and other applicable provisions, if any, of
the Companies Act, 2013 (“the Act”), the rules framed thereunder and the applicable provisions of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended from time to time and such other provisions as may be applicable, approval of
the members of the Company be and is hereby accorded for reappointment of Salil S. Parekh (“Salil”) (DIN: 01876159) as Chief Executive
Officer and Managing Director of the Company, effective July 1, 2022 to March 31, 2027, liable to retire by rotation and on such terms and
conditions including the remuneration as detailed in the attached explanatory statement.
RESOLVED FURTHER THAT the existing employment agreement between Salil and the Company dated December 2, 2017, and as
amended on July 26, 2019 (collectively “Existing Employment Agreement”) be hereby amended and superseded with a new employment
agreement (“New Employment Agreement”) subject to terms as detailed in the explanatory statement annexed hereto.
RESOLVED FURTHER THAT the Board of Directors of the Company (“the Board”) be and is hereby authorized to execute a New
Employment Agreement inter-alia containing the terms and conditions of reappointment and to alter such terms and conditions as
it may deem appropriate in relation to reappointment of Salil in the capacity of Chief Executive Officer and Managing Director of the
Company commencing from July 1, 2022 to March 31, 2027, on the recommendations of the nomination and remuneration committee
of the Company (“the Committee”) subject to terms as specified in the explanatory statement, and in compliance with the applicable
provisions of the Act and other applicable laws.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to settle any question, difficulty or
doubt, that may arise in giving effect to this resolution and to do all such acts, deeds and things as may be necessary, expedient and
desirable for the purpose of giving effect to this resolution.
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 21, 2022
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
Notes
1. Pursuant to the General Circulars 2/2022 and 19/2021, other circulars issued by the Ministry of Corporate Affairs (MCA) and Circular
SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated May 13, 2022 issued by 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
25, 2022. 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 13, 2022, has recommended a final dividend of ₹ 16 per share.
The record date for the purpose of final dividend for fiscal 2022 is June 1, 2022. The final dividend, once approved by the members
in the ensuing AGM, will be paid on June 28, 2022 electronically through various online 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 to their registered addresses. To avoid delay in receiving dividend, members are requested to update
Notice of the 41st Annual General Meeting | 3
Infosys Limited 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 dividend paid or
distributed by a company on or 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. 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)
10%*or as notified by the Government of India
Members not having PAN / valid PAN
20% or as notified by the Government of India
* As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein higher rate of tax (twice the specified rate) would be applicable
on payment made to a shareholder who is classified as ‘Specified Person’ as defined under the provisions of the aforesaid Section.
However, no tax shall be deducted on the dividend payable to resident individual shareholders if the total dividend to be received by
them during financial year 2022-23 does not exceed ₹ 5,000, and also in cases where members provide Form 15G / Form 15H (Form
15H is applicable to resident individual shareholders 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 of 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 shareholders, 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 shareholders or details as prescribed under
rule 37BC of the Income-tax Rules, 1962
• Copy of the Tax Residency Certificate for financial year 2022-23 obtained from the revenue or tax authorities of the country of tax
residence, duly attested by shareholders
Self-declaration in Form 10F
Self-declaration by the shareholders 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 shareholders
In case of Foreign Institutional Investors / Foreign Portfolio Investors, tax will be deducted under Section 196D of the IT Act at the
rate of 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, if applicable.
** As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein higher rate of tax (twice the specified rate) would be
applicable on payment made to a shareholder who is classified as ‘Specified Person’ as defined under the provisions of the aforesaid section. However, in
case a non-resident shareholder or a non-resident Foreign Portfolio Investor (FPI) / Foreign Institutional Investor (FII), higher rate of tax as mentioned in
Section 206AB shall not apply if such non-resident does not have a permanent establishment in India.
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 9, 2022. 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 9, 2022 regarding tax-withholding matters. Shareholders may write to dividend.tax@infosys.com for any
clarifications on this subject.
TDS certificates in respect of tax deducted, if any, can be subsequently downloaded from the shareholder’s portal. Shareholders can
also check their tax credit in Form 26AS from the e-filing account at https://www.incometax.gov.in/iec/foportal or “View Your Tax
Credit” on https://www.tdscpc.gov.in.
9. Members are requested to address all correspondence, including dividend-related matters, to RTA, KFin Technologies Limited
(formerly known as 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
4 | Notice of the 41st Annual General Meeting
Infosys Limited 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 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 Hemanth, Holla & Co., Practicing Company Secretaries, as Scrutinizers 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 18, 2022, may cast their
votes electronically. The e-voting period commences on Monday, June 20, 2022 (9:00 a.m. IST) and ends on Friday, June 24, 2022
(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 18, 2022. 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 18, 2022, 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 18, 2022, may follow steps mentioned in the Notice under ‘Instructions for e-voting’.
15. In compliance with the Circulars, the Integrated Annual Report 2021-22, the Notice of the 41st 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 DP, and members holding shares in physical mode are requested to update their email
addresses with the Company’s RTA, KFin Technologies Limited at einward.ris@kfintech.com, to receive copies of the Integrated
Annual Report 2021-22 in electronic mode. Members may follow the process detailed below for registration of email ID to obtain the
report and update of bank account details for the receipt of dividend.
Type of holder
Physical
For availing the following investor services, send a written request in the prescribed forms to the RTA of the
Company, KFin Technologies Limited either by email to einward.ris@kfintech.com or by post to Selenium Tower B,
Plot 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032.
Process to be followed
Form for availing investor services to register PAN,
email address, bank details and other KYC details
or changes / update thereof for securities held in
physical mode
Form ISR-1
Update of signature of securities holder
For nomination as provided in the Rules
19 (1) of Companies (Share capital and
debenture) Rules, 2014
Declaration to opt out
Cancellation of nomination by the holder(s)
(along with ISR-3) / Change of Nominee
Form ISR-2
Form SH-13
Form ISR-3
Form SH-14
Form for requesting issue of Duplicate Certificate
and other service requests for shares / debentures
/ bonds, etc., held in physical form
ISR 4
Demat
The forms for updating the above details are available at
https://www.infosys.com/investors/shareholder-services/investors-service.html
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 41st AGM and the Integrated Annual Report 2021-22 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 41st Annual General Meeting | 5
Infosys Limited 19. SEBI has mandated the submission of PAN, KYC details and nomination by holders of physical securities by March 31, 2023, and
linking PAN with Aadhaar by March 31, 2022 vide its circular dated November 3, 2021 and December 15, 2021. Shareholders are
requested to submit their PAN, KYC and nomination details to the Company’s registrars KFin Technologies Limited at
einward. ris@kfintech.com. The forms for updating the same are available at https://www.infosys.com/investors/shareholder-
services/investors-service.html.
Members holding shares in electronic form are, therefore, requested to submit their PAN to their depository participant(s).
In case a holder of physical securities fails to furnish these details or link their PAN with Aadhaar before the due date, our registrars
are obligated to freeze such folios. The securities in the frozen folios shall be eligible to receive payments (including dividend) and
lodge grievances only after furnishing the complete documents. if the securities continue to remain frozen as on December 31, 2025,
the registrar / the Company shall refer such securities to the administering authority under the Benami Transactions (Prohibitions)
Act, 1988, and / or the Prevention of Money Laundering Act, 2002.
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 21, 2022
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
6 | Notice of the 41st Annual General Meeting
Infosys Limited
Explanatory statement
Item no. 4 – Reappointment of Deloitte Haskins & Sells LLP, Chartered Accountants, as statutory auditors
of the Company
Deloitte Haskins & Sells LLP, Chartered Accountants (ICAI Firm Registration Number 117366W/W-100018), (hereinafter referred to as
Deloitte) were appointed as statutory auditors of the Company at the 36th AGM held on June 24, 2017 to hold office from the conclusion
of the said meeting till the conclusion of the 41st AGM to be held in the year 2022. In terms of the provisions of Section 139 of the
Companies Act, 2013, the Companies (Audit and Auditors) Rules, 2014, and other applicable provisions, the Company can appoint
or reappoint an audit firm as statutory auditors for not more than two (2) terms of five (5) consecutive years. Deloitte is eligible for
reappointment for a further period of five years. Based on the recommendations of the audit committee, the Board of Directors, at its
meeting held on April 13, 2022, approved the reappointment of Deloitte as the statutory auditors of the Company to hold office for a
second term of five consecutive years from the conclusion of the ensuing AGM until the conclusion of the 46th AGM to be held in the year
2027. The reappointment is subject to approval of the shareholders of the Company.
The proposed remuneration to be paid to Deloitte for audit services for the financial year ending March 31, 2023, is ` 9.5 Crore (Rupees
Nine Crore and Fifty Lakh) plus applicable taxes and out-of-pocket expenses. Besides the audit services, the Company would also
obtain certifications from the statutory auditors under various statutory regulations and certifications required by clients, banks,
statutory authorities, audit related services and other permissible non-audit services as required from time to time, for which they will
be remunerated separately on mutually agreed terms, as approved by the Board of Directors in consultation with the audit committee.
The above fee excludes the proposed remuneration to be paid to overseas audit firms for the purpose of statutory audit of overseas
subsidiaries and branches.
The Board of Directors and the audit committee shall approve revisions to the remuneration of the statutory auditors for the
remaining part of the tenure.
The Board of Directors, in consultation with the audit committee, may alter and vary the terms and conditions of appointment, including
remuneration, in such manner and to such extent as may be mutually agreed with the statutory auditors.
Considering the evaluation of the past performance, experience and expertise of Deloitte and based on the recommendation of the
audit committee, it is proposed to appoint Deloitte as statutory auditors of the Company for a second term of five consecutive years till
the conclusion of the 46th AGM of the Company in terms of the aforesaid provisions.
Brief profile of Deloitte
Deloitte Haskins & Sells was constituted in 1997 and was converted to a Limited Liability Partnership, Deloitte Haskins & Sells LLP (“DHS LLP” or
“Firm”), in November 2013. DHS LLP is registered with the Institute of Chartered Accountants of India (Registration No. 117366W/W-100018). The
Firm has around 4000 professionals and staff. DHS LLP has offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad,
Coimbatore, Kochi, Pune, Jamshedpur and Goa. The registered office of the Firm is One International Center, Tower 3, 27th to 32nd Floor, Senapati
Bapat Marg, Elphinstone Road (West), Mumbai - 400013, Maharashtra, India. The Firm has been engaged in statutory audits of some of the large
companies in the technology sector.
None of the Directors and Key Managerial Personnel of the Company and their respective relatives are concerned or interested,
financially or otherwise, in passing the proposed Resolution.
The Board recommends the resolution set forth in item no. 4 for the approval of members.
Item no. 5 – Reappointment of D. Sundaram as an independent director
D. Sundaram was appointed as an independent director of the Company pursuant to Section 149 of the Companies Act, 2013, read with
the Companies (Appointment and Qualification of Directors) Rules, 2014, by the members at the AGM held on July 14, 2017, to hold
office up to July 13, 2022. He is due for retirement from the first term as an independent director on July 13, 2022. The nomination and
remuneration committee, at its meeting held on April 12, 2022, after taking into account the performance evaluation of D. Sundaram
during his first term of five years and considering his knowledge, acumen, expertise, experience and substantial contribution and time
commitment, has recommended to the Board his reappointment for a second term of five years. The nomination and remuneration
committee has considered his diverse skills, leadership capabilities, expertise in governance and finance, risk management and
vast global business experience, among others, as being key requirements for this role. In view of the above, the nomination and
remuneration committee and the Board are of the view that D. Sundaram possesses the requisite skills and capabilities, which would be
of immense benefit to the Company, and hence, it is desirable to reappoint him as an independent director.
Based on the recommendation of the nomination and remuneration committee, the Board, at its meeting held on April 13, 2022, has
recommended the reappointment of D. Sundaram as an independent director, not liable to retire by rotation, for a second term of five
years effective July 14, 2022 to July 13, 2027.
In accordance with the provisions of Section 149 of the Companies Act, 2013, an independent director may hold office for two terms up
to five consecutive years each.
Notice of the 41st Annual General Meeting | 7
Infosys Limited D. Sundaram 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 D. Sundaram, 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 D. Sundaram to the office of independent director.
In the opinion of the Board and based on its evaluation, D. Sundaram fulfils the conditions specified in the Companies Act, 2013 and
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 D. Sundaram 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 D. Sundaram as an independent director of the Company
effective July 14, 2022 up to July 13, 2027, 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.
No director, key managerial personnel or their relatives except D. Sundaram, to whom the resolution relates, is interested in or
concerned, financially or otherwise, in passing the proposed resolution set out in item no. 5.
The Board recommends the resolution set forth in item no. 5 for the approval of members.
Item no. 6 – Reappointment of Salil S. Parekh, Chief Executive Officer and Managing Director of the
Company, and approval of the revised remuneration payable to him
Salil is currently the Chief Executive Officer and Managing Director (“CEO and MD”) of the Company. He was appointed as the CEO and
MD of the Company for a period of 5 (five) years effective January 2, 2018, till January 1, 2023.
Based on the strong performance of the Company and increase in shareholder value, under the leadership of Salil and other key factors
as elaborated below, the Committee considered it appropriate to recommend to the Board reappointment of Salil as CEO and MD of the
Company, commencing on July 1, 2022 and ending on March 31, 2027 (“the Proposed Term”) on the terms and conditions, including the
remuneration payable to Salil as contained in this explanatory statement.
Accordingly, the Board, based on the recommendation of the Committee, at its meeting held on May 21, 2022, has approved the
reappointment of Salil as CEO and MD of the Company for the Proposed Term on the terms and conditions including the remuneration
as stated in this explanatory statement, and for this purpose, has approved the execution of the New Employment Agreement for the
reappointment of Salil, effective July 1, 2022, subject to necessary approvals as may be required under applicable laws.
The key factors that were considered by the Committee for recommending the reappointment for the Proposed Term, on the terms and
conditions including the remuneration, are given below:
i. Under Salil’s leadership 1, the Company’s Total Shareholder Return (TSR) was an impressive 314%, the highest among peers 2, and
was well above the TSR (in INR) of benchmark indices of NIFTY at 77% and S&P 500 at 117%. The Company’s market capitalization
increased during his tenure by ~ `5,77,000 crore (~US $69 billion). In comparison, during the preceding four-year period, prior to the
appointment of Salil, the Company’s TSR was 30% as compared to the peers’ median TSR of 47%.
ii. The revenue growth of the Company under Salil’s leadership has accelerated and grown from `70,522 crore (fiscal 2018) to `1,21,641
crore (fiscal 2022), a CAGR of 15% (prior four years CAGR 9%) and the profits have also increased from `16,029 crore to
`22,110 crore.
iii. These results were delivered under the Navigating your Next strategy, led by Salil, comprising Scaling digital revenue, Accelerating
the core, Localization and Reskilling, which has resulted in an increased market share in a highly competitive environment. The
Company has executed its market-differentiating strategy by more than doubling the share of digital revenue from 25.5% (fiscal
2018) to 57.0 % (fiscal 2022) and is now considered a leading digital company with industry analysts rating it as a leader in 32
categories. The Company has signed large deals with a total value of ~ US $39 billion for the four-year period from fiscal 2019 to fiscal
2022. As part of its strategy execution, the Company also launched Infosys Cobalt™ – a set of services, solutions and platforms to
accelerate the cloud journey for enterprises 3.
iv. The strength and stability of leadership across the organization, increase in number of US $100 million clients from 20 in fiscal 2018
to 38 in fiscal 2022, strategic Mergers & Acquisitions, successful implementation of the new Capital Allocation Policy 4, path-breaking
ESG 2030 5 vision and seamless navigation of the uncertainties of the COVID-19 pandemic while converting challenges into business
opportunities have all been drivers of significant long-term shareholder value creation, under the leadership of Salil.
(1) From January 2, 2018, to March 31, 2022
(2) For purposes of this explanatory statement, the Company’s peers are Accenture plc, Cognizant Technology Solutions Corporation, DXC Technology Company,
Tata Consultancy Services Limited, Wipro Limited, Tech Mahindra, Capgemini, HCL Technologies Limited, International Business Machines Corporation, and
Atos SE (“peers”) as defined in Infosys Expanded Stock Ownership Program, 2019.
(3) https://www.infosys.com/newsroom/press-releases/2020/infosys-cobalt-accelerating-enterprise-cloud.html
(4) https://www.infosys.com/investors/corporate-governance/documents/capital-allocation-policy.pdf
(5) https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html
8 | Notice of the 41st Annual General Meeting
Infosys Limited v.
In the interest of the Company and its stakeholders, securing the continuity and stability of the current leadership is critical.
Therefore, the Committee considered it appropriate to recommend to the Board the reappointment of Salil for another term as CEO
and MD commencing on July 1, 2022 and ending on March 31, 2027.
vi. The Committee has also recommended a revised compensation structure considering that Salil is not a first-time CEO and MD, as he
was at the time of his initial appointment. Salil is the CEO of Infosys, a globally listed entity and has demonstrated successful business
and overall performance since his appointment. This growth is accompanied by an increase in the total number of employees from
2,04,107 to 3,14,015 during his tenure. The Company competes with global peers, particularly in North America and Europe, with
almost 87% of the Company’s revenue coming from these geographies, and therefore, Salil’s remuneration has to be determined
keeping in view international benchmarks. Salil’s proposed total target remuneration vis-à-vis the remuneration most recently paid
to CEOs of the peers (based on publicly available information as analyzed by the Company’s external advisors Egon Zehnder) would
be around the median. For this analysis, the Company’s peers are Accenture plc, Cognizant Technology Solutions Corporation, DXC
Technology Company, Tata Consultancy Services Limited, Wipro Limited, Tech Mahindra, Capgemini, HCL Technologies Limited,
International Business Machines Corporation, and Atos SE as defined in the Infosys Expanded Stock Ownership Program, 2019.
vii. A summary comparison of his current remuneration terms and the proposed terms and conditions of his annual remuneration are as
follows (all numbers are in ` crore):
Category and performance metrics
Fixed cash compensation
Time-based RSU under the 2015 Plan
Total fixed compensation
Variable cash compensation
(operating metrics as determined by the Committee)
Current
terms
Proposed
terms
Vesting schedule in proposed terms
6.50
3.25
9.75
9.75
8.00
NA
3.00
Equal vesting over three years
11.00
17.00
NA
Annual payout
Performance equity grant
(strategic metrics as determined by the Committee) under the 2015 Plan
13.00
34.75
Performance equity grant RSU
(metrics as approved by shareholders) under the 2019 Plan
10.00
10.00
Annual vesting
(refer to clause (B).4 below)
Annual vesting
(refer to clause (B).5 below)
Performance equity grant ESG metrics
(as determined by the Committee) under 2015 Plan
0.00
2.00
Annual vesting
(refer to clause (B).6 below)
Performance equity grant – Long-term TSR metrics under 2015 Plan
0.00
5.00
Cliff vesting
(refer to clause (B).7 below)
Total performance-based remuneration
Total remuneration
32.75
42.50
68.75
79.75
The Company issues Restricted Stock Units (RSUs) and / or Performance-based Restricted Stock Units (PSUs) under the Infosys Limited 2015
Incentive Compensation Plan (“2015 Plan”) and the Infosys Expanded Stock Ownership Program (“2019 Plan”), respectively.
Fixed pay
15%
77%
Performance-based
compensation
Time-based
stocks
8%
Variable
pay
23%
Performance-
based stocks
54%
Performance-
based stocks
65%
Fixed pay
10%
Time-based
stocks
4%
86%
Performance-based
compensation
Variable
pay
21%
Fixed rewards
Performance-based rewards
Fixed rewards
Performance-based rewards
Current remuneration
Proposed remuneration
Notice of the 41st Annual General Meeting | 9
Infosys Limited It is important to note the following:
The Company‘s compensation philosophy is to ensure alignment of executive compensation with shareholder value 6. Accordingly,
almost 97% of the increase in Salil’s proposed annual remuneration is linked to performance. Under the revised remuneration, Salil’s
fixed compensation (fixed pay and time-based RSUs) shall constitute less than 15% of this total compensation at target (compared to
23% under his current terms). Additionally, 70% of Salil’s performance-based compensation is given in the form of RSU or PSU grants and
therefore is predicated on the performance of the Company’s share price.
It is pertinent to note that Salil will be granted ~2,21,000 PSUs (`34.75 crore) 7 for the fiscal 2023 performance, which is a similar number
to the 2,17,200 8 (adjusted for bonus shares) PSUs (`13 crore) that was granted in his first year of appointment. This vividly reflects the
substantial value accretion to the Company’s share price.
All the performance metrics against which the compensation will be paid have been individually outlined below and will align Salil to
build a strong and sustainable business enabling consistent and superior value creation for shareholders.
It may be noted that any comparison of CEO salary to the median remuneration of employees of the Company should be seen in the
context of the Company’s strong performance and stock price growth 9. Under the Company’s general pay structure, equity awards
are only granted to senior employees so that most employees at the Company have fixed compensation that is not at risk. When the
Company’s stock price performs well, the equity awards have greater value making such comparison seem larger. Accordingly, the
amounts Salil realized from his equity award have been higher than targeted values.
Remuneration detail:
(A) Fixed compensation
1. Fixed cash compensation: An annual salary of INR Eight crore (₹8,00,00,000) will be payable as remuneration for his services (“the
Fixed Pay”). The Fixed Pay will be paid monthly in accordance with the Company’s normal payroll practices. Annual increments
to fixed cash compensation of up to 7% will be determined by the Board or Committee on an annual basis at its sole discretion.
However, while determining the annual increments, the Board or the Committee will consider factors like inflation, general increases
recommended for other executives and the business context.
2. Time-based RSUs: An annual grant of Restricted Stock Units (RSUs) covering the Company’s equity shares (“Shares”), having a value
equal to INR Three crore (₹3,00,00,000). Each time-based equity grant shall vest in three equal tranches on the first, second, and third
anniversary of the grant date.
(B) Variable compensation
3. Variable cash compensation: An annual variable pay of INR Seventeen crore (₹17,00,00,000) (“Variable Pay”) shall be payable at
the end of financial year 2023 and in subsequent years, during the Proposed Term of his appointment, subject to the Company’s
achievement of certain targets as determined by the Board or its Committee from time to time (the “Target Variable Pay”).
The Variable Pay for a particular financial year shall not exceed 125% of the Target Variable Pay (“Maximum Variable Pay”). The
achievement targets cover revenue growth, operating margin and such other annual parameters as decided by the Committee.
Annual increments to variable cash compensation of up to 7% will be determined by the Board or Committee on an annual basis at
its sole discretion. However, while determining the annual increments, the Board or the Committee will consider factors like inflation,
general increases recommended for other executives and the business context.
4. Performance equity grant under the Infosys Limited 2015 Incentive Compensation Plan: An annual performance-based RSU
grant under the Infosys Limited 2015 Incentive Compensation Plan, covering Shares having a value equal to INR Thirty four crore
seventy five lakh (₹34,75,00,000). These shares will vest annually based on the achievement of certain strategic milestones at the
end of each financial year, the first of which shall conclude on March 31, 2023. The strategic milestones include those related to
organizational development, quality of revenue and such other appropriate measures as determined by the Board or its Committee
annually. For instance, for fiscal 2022, some of the metrics used to determine the performance under these criteria were the growth in
digital revenue, number of US $50 million and US $100 million clients, employee engagement scores, and stability in the Company’s
leadership. These grants shall be issued under the 2015 Plan.
(6) https://www.infosys.com/investors/corporate-governance/documents/nomination-remuneration-policy.pdf
(7) Estimated based on the share price as on April 30, 2022. The actual number of shares to be issued based on share price as on the date of the grant, post
shareholders’ approval
(8) 1,08,600 shares were granted on May 2, 2018 and bonus shares of 1,08,600 were credited on September 5, 2018.
(9) As disclosed in our Integrated Annual Report 2021-22, the ratio of Median Remuneration of Employees of CEO to median employee is 229
(excluding stock-based compensation) and 872 (including stock-based compensation).
10 | Notice of the 41st Annual General Meeting
Infosys Limited The details of the indicative performance metrics are as under:
Category
Weightage
Indicative KPIs
Quality of revenue
Up to 50%
Organization development goals
Up to 50%
Any other areas as determined by
the Board or its Committee
Up to 50%
Growth of digital revenue; Growth of cloud services; Total Contract Value
(TCV) from large deals; Revenue from new accounts; Growth of US $50 million
and US $100 million accounts; Other goals that may be decided by the Board
or its Committee from time to time.
Employee satisfaction scores; Leadership attrition; Succession plan for key
roles; and such other goals, including qualitative measures, that may be
decided by the Board or its Committee from time to time.
5. 2019 annual performance equity grant under the Infosys Expanded Stock Ownership Program 2019: An annual performance-
based RSU grant under the Infosys Expanded Stock Ownership Program 2019, covering Shares having a value equal to INR Ten crore
(₹10,00,00,000). These shares will vest annually based on the Company’s achievement of metrics as approved by shareholders in the
2019 Plan. These include relative TSR calculated against the peer group, relative TSR against the market’s global and domestic indices
and operating performance metrics of the Company. These grants will be issued under the 2019 Plan.
6. Performance equity grant – ESG metrics under the Infosys Limited 2015 Incentive Compensation Plan: An annual performance-
based RSU grant under the Infosys Limited 2015 Incentive Compensation Plan covering Shares having a value equal to INR Two crore
(₹2,00,00,000). These shares will vest annually based on the achievement of certain milestones related to Environmental, Social, and
Governance (ESG) priorities as determined by the Board or its Committee and in line with the ESG Vision 2030 10. These grants will be
issued under the 2015 Plan.
7. Performance equity grant – Long-term TSR metrics under the Infosys Limited 2015 Incentive Compensation Plan: An annual
grant covering Shares having a value equal to INR Five crore (₹5,00,00,000). The number of shares that will vest under the long-term
TSR-based PSU grant shall be calculated in two tranches: (i) the first vesting will happen after March 31, 2025, for all the grants made
during the financial years ending March 31, 2023, March 31, 2024, and March 31, 2025. These will vest based on the cumulative TSR for
the three-year period; (ii) the second vesting will happen on or after March 31, 2027, for the grants made during the financial years
ending March 31, 2026 and March 31, 2027. These will vest based on the cumulative TSR for the two-year cumulative period.
The RSUs granted under this category shall vest based on the following performance parameters with each having 50% weightage:
i. Relative TSR against a peer comparator group of not less than eight comparators which will be identified by the Committee from a
basket of the following 10 industry peers which include Indian and global companies such as Accenture, DXC technologies, Wipro,
TCS, Cognizant, IBM, Capgemini, Tech Mahindra, Atos and HCL.
In case of delisting of any of the above-mentioned peer group companies during the performance measurement period, the
Committee is entitled to include an additional peer set company to the comparator group.
ii. Relative TSR against broader market domestic and global indices comprising Nifty 50, S&P 500 and MSCI index.
Shares will vest based on the Company’s performance on Relative TSR in (i) and (ii) above as follows:
•
•
•
If it ranks in the 75th percentile and above, then a maximum of 100% of the RSUs due for vesting will vest;
If it ranks in the 50th to 75th percentile, then the RSUs due for vesting will vest proportionately on a linear scale between 60% to
100%, and the balance will lapse;
If it ranks below the 50th percentile, then no RSUs due for vesting will vest.
For purposes of this section, value of a Share subject to an award of RSUs will be the closing trading price of the applicable Share on
the National Stock Exchange of India Limited on the grant date. The vesting and other terms of each grant made under this section
shall be subject to the Company’s 2015 Plan or 2019 Plan and any agreements evidencing the award under the respective plans, and
as determined by the Board or its Committee, in its sole discretion, from time to time.
All the RSUs and PSUs are subject to the achievement of milestones as set out in respective paragraphs above. Any RSUs or PSUs that
do not vest as a result of the failure of the Company to meet the milestones shall be forfeited. Further, for a grant to vest, Salil must
be employed with the Company on March 31 of the relevant financial year and RSUs and PSUs will continue to vest for a period of 90
days from the date of retirement as per the Company policy.
(10) https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html
Notice of the 41st Annual General Meeting | 11
Infosys Limited Other key terms
1.
Term: Unless terminated earlier or extended later by the parties pursuant to the Existing Employment Agreement, the Existing
Employment Agreement shall terminate on the earlier of (a) January 2, 2023 or (b) on receipt of the shareholder approval of the New
Employment Agreement effective July 1, 2022. The New Employment Agreement shall expire on March 31, 2027. To the extent the
effectiveness of the New Employment Agreement is subject to shareholder approval, the Existing Employment Agreement shall
remain in force till the shareholder approval is received.
2. Retirement: Salil will retire from the Company at the end of the Proposed Term on March 31, 2027.
3. Notice period: Each party agrees to provide ninety (90) days’ notice prior to terminating the agreement for reasons other than cause
or for good reason. The Company may, in its sole and exclusive discretion, satisfy its notice period obligation by either providing
Salil with the equivalent of (a) ninety (90) days of his Fixed Pay, (b) an amount equal to ninety (90) days of Variable Pay (which shall
mean the average monthly Variable Pay paid over the last immediately twelve (12) months prior to the termination date) and
(c) other compensation and benefits that he would have earned during the notice period had he remained employed during such
notice period, including continued vesting of Shares during the notice period, previously granted to him as stock compensation or
(d) placing him on “garden leave” for the duration of the notice period.
4. Severance: If during the employment term, (i) the Company terminates Salil’s employment other than for cause (excluding as
a result of his death or disability) or (ii) if Salil resigns for good reason, he will be entitled to receive a severance amount (less all
applicable withholdings) equal to fifty percent (50%) of the Fixed Pay and fifty percent (50%) of the last paid out annual Variable
Pay. In addition, the Company shall accelerate the vesting of each of his then outstanding, time-based equity grants that would
have vested over the six (6) months following the termination date but for his termination; provided, however, that there shall be no
accelerated vesting of any other equity grants.
5.
Insurance: His insurance will be covered under the Company’s health insurance scheme and the Company’s life insurance
scheme as applicable.
6. Non-compete: Salil agrees he will not work with the named competitors for a period of six (6) months from date of
separation with the Company.
7.
Employee benefits: During the term of his employment, Salil will be entitled to participate in the employee benefit plans currently
and hereafter maintained by the Company of general applicability to other employees of the Company.
8. Vacation: Salil will be entitled to paid vacation in accordance with the Company’s vacation policy.
9.
Expenses: The Company will reimburse Salil for reasonable travel, entertainment or other expenses incurred in accordance with the
Company’s expense reimbursement policy for whole-time directors.
10. Minimum and maximum remuneration: Should Salil fail to achieve minimum performance targets, his remuneration as proposed
will be INR Eight crore (₹8,00,00,000) annually of Fixed Pay and INR Three crore (₹3,00,00,000) of time-based annual equity grant.
11. Clawback: The entire remuneration of Salil is subject to clawback provisions that may result in Salil being required to return such
compensation in accordance with the recoupment policy and / or the New Employment Agreement.
12. Variation: Any variation to the terms and conditions of his appointment and remuneration, including Fixed pay, Variable pay, and
Stock compensation, will be subject to review and approval of the Board (or its Committee) and the shareholders
(if applicable) in accordance with the applicable law, including the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
13. Qualification: Salil’s employment is conditioned on his representation that he is not disqualified or prevented from acting as
a director and / or MD on the Board of the Company, under applicable law including the Companies Act, 2013; SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and that there are no other restrictions, such as a non-compete or non-
solicitation agreement.
14. Duties: Salil shall perform such duties as shall from time to time be entrusted to him by the Board, subject to superintendence,
guidance and control of the Board.
The Company has received all statutory disclosures / declarations from Salil, 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 the Company has also received a notice under Section 160 of the Companies Act, 2013 from a member, intending
to nominate Salil to the office of CEO and MD. A copy of the draft agreement with Salil that sets out the terms and conditions of
reappointment is available for electronic inspection without any fee by the members.
No director, key managerial personnel or their relatives except Salil, to whom the resolution relates, is interested in or concerned,
financially or otherwise, in passing the proposed resolution set out in item no. 6.
The Board recommends the resolution set forth in item no. 6 for the approval of members.
12 | Notice of the 41st 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
Shareholding in the Company as on May 21, 2022:
Name
Category
Nandan M. Nilekani
Director
Rohini Nilekani
Relative (Spouse)
Nihar Nilekani
Relative (Son)
Janhavi Nilekani
Relative (Daughter)
No. of equity
shares held
40,783,162
34,335,092
12,677,752
8,589,721
Remuneration proposed to be paid: Nandan M. Nilekani
voluntarily chose not to receive any remuneration for his services
rendered to the Company.
Key terms and conditions of reappointment: As per the resolution
at Item no. 3 of this Notice. Nandan M. Nilekani’s office as director
shall be subject to retirement by rotation.
Date of first appointment to the Board, last drawn remuneration
and number of Board meetings attended: Nandan M. Nilekani
was first appointed to the Board in 1981. He ceased to be a
member of the Board on July 9, 2009. He was unanimously
appointed as a member and chairman of the Board effective
August 24, 2017. He voluntarily chose not to receive any
remuneration for his services rendered to the Company. Details
pertaining to his appointment, remuneration, and number of
meetings attended are provided in the Corporate governance
report of the Integrated Report 2021-22.
Nandan M. Nilekani
Chairman
Nandan M. Nilekani (Nandan) is the Chairman of Infosys Limited,
which he co-founded in 1981, and EkStep, a not-for-profit
effort to create a learner-centric, technology-based platform
to improve basic literacy and numeracy for millions of children.
He was previously the Chairman of the Unique Identification
Authority of India (UIDAI) in the rank of a Cabinet Minister.
Nandan received his bachelor’s degree from IIT, Bombay. Fortune
Magazine conferred on him the title of “Asia’s Businessman of
the Year – 2003”. In 2005, he received the prestigious Joseph
Schumpeter Prize for innovative services in economy, economic
sciences and politics. In 2006, he was awarded the Padma
Bhushan. The same year, he was named Businessman of the
Year by Forbes Asia. Time magazine listed him as one of the 100
most influential people in the world in 2006 and 2009. Foreign
Policy magazine listed him as one of the Top 100 Global Thinkers
in 2010. He won The Economist Social & Economic Innovation
Award for his leadership of India’s unique identification initiative
(Aadhaar). In 2017, he received the Lifetime Achievement Award
from E&Y. CNBC-TV18 conferred the India Business Leader award
for outstanding contribution to the Indian economy in 2017
and he also received the 22nd Nikkei Asia Prize for Economic &
Business Innovation 2017. He is the author of Imagining India
and co-authored with Viral Shah his second book, Rebooting
India: Realizing a Billion Aspirations and his third book with Tanuj
Bhojwani, The Art of Bitfulness: Keeping Calm in the Digital World
released in January 2022.
Age: 66 years
Nature of expertise in specific functional areas: Financial,
Diversity, Global Business, Cybersecurity, Strategy, Leadership,
Information Technology, Board Service and Governance, Sales
and Marketing, Mergers & Acquisitions, Risk Management, and
Sustainability and ESG
Disclosure of inter-se relationships between directors and key
managerial personnel: None
Listed entities (other than the Infosys Group) in which Nandan M.
Nilekani holds directorship and committee membership: Nil
Listed entities from which Nandan M. Nilekani has resigned in the
past three years: Nil
Notice of the 41st Annual General Meeting | 13
Infosys Limited D. Sundaram
Independent Director
D. Sundaram’s experience spans corporate finance, business
performance, monitoring operations, governance, mergers
& acquisitions, talent / people management and strategy.
Sundaram joined Hindustan Unilever Limited (the Indian
subsidiary of Unilever PLC) as Management Trainee in June
1975, and served in various capacities as Corporate Accountant,
Commercial Manager and Treasurer till 1990. He was seconded
to Unilever, London as Commercial Officer for Africa and Middle
East Group between 1990 and 1993. He was the Commercial
Manager of TOMCO integration team in 1993-94. He was CFO
of Brooke Bond Lipton India from 1994 to 1996 and served
in Unilever London between 1996 and 1999, as Senior Vice
President (Finance, IT and Strategy) for South Asia and Middle
East. In April 1999, he returned to HUL’s Board as Finance & IT
Director. Sundaram was elevated as Vice Chairman and CFO of
HUL in April 2008. In all, Sundaram has more than 34 years of
experience with Hindustan Unilever. He is a two-time winner of
the prestigious “CFO of the Year for FMCG Sector” award by CNBC
TV18 (2006 and 2008). He was awarded as the “Best Independent
Director Award” for the year 2019 by the Asian Center for
Corporate Governance & Sustainability.
Sundaram is a Postgraduate in Management Studies (MMS), Fellow
of the Institute of Cost and Accountants, and has done Harvard
Business School’s Advanced Management Programme (AMP).
Sundaram has served as an independent director on the board
of State Bank of India, between January 2009 and June 2014.
He currently serves as an independent director on the boards
of the Listed Companies, GSK Pharma India, Crompton Greaves
Consumer Electricals Limited and ACC Limited.
Age: 69 years
Nature of expertise in specific functional areas: Finance,
Diversity, Global business, Leadership, Mergers & Acquisition,
Board services and governance, Sustainability and ESG, Risk
management, Information Technology and Cybersecurity.
Disclosure of inter-se relationships between directors and key
managerial personnel: Nil
Listed entities (other than the Infosys Group) in which D.
Sundaram holds directorship and committee membership:
As per the LODR Regulations an independent director may hold
Directorships in seven listed Companies. Sundaram holds 4
Independent Directorships, which is significantly lower than the
limit prescribed under the LODR Regulations.
The details of directorships/ Committee memberships in listed
Companies are as below
Committee
chairmanships
Audit committee,
risk management
committee
Audit committee,
risk management
committee
Directorships
GlaxoSmithKline
Pharmaceuticals
Limited
Crompton
Greaves
Consumer
Electricals Limited
Committee
memberships
Nomination and
remuneration
committee
1. Corporate Social
Responsibility
committee,
2. Nomination and
remuneration
committee
3. Stakeholders
relationship and
share transfer
committee
ACC Limited
Compliance
committee
Audit committee and
Risk committee
Listed entities from which D. Sundaram has resigned in the past
three years:
Name of the Company
TVS Electronics Limited
Date of
resignation
August 8, 2020
Shareholding in the Company as on May 21, 2022: Nil
Skills and Capabilities: As per the resolution at Item no. 5 of this
Notice, read with the explanatory statement thereto.
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 the 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: D. Sundaram was
first appointed to the Board on July 14, 2017. The details of
remuneration drawn and number of meetings attended are
provided in the Corporate governance report section of the
Integrated Report 2021-22.
14 | Notice of the 41st Annual General Meeting
Infosys Limited Salil S. Parekh
Chief Executive Officer and Managing Director
Salil has been the Chief Executive Officer and Managing Director
of Infosys since January 2018 and has successfully led the
Company over the last four years.
Salil, as Chief Executive Officer and Managing Director, sets
and evolves the strategic direction for the Company and its
portfolio of offerings, while nurturing a strong leadership team
to drive its execution.
Salil has more than 30 years of global experience in the IT
services industry with a strong track record of driving digital
transformation for enterprises, executing business turnarounds,
and managing successful acquisitions. Earlier, Salil was a member
of the Group Executive Board at Capgemini, where he held
several leadership positions for 25 years. Salil was also a Partner
at Ernst & Young and is widely credited for bringing scale and
value to the Indian operations of the consultancy firm. He
holds Master of Engineering degrees in Computer Science and
Mechanical Engineering from Cornell University, and a Bachelor
of Technology degree in Aeronautical Engineering from the
Indian Institute of Technology, Bombay.
Age: 57 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Strategy, Board service and governance,
Financial, Diversity, Global business, Sales and marketing,
Cybersecurity, Mergers & Acquisition, Risk management and
Sustainability & ESG
Disclosure of inter-se relationships between directors and key
managerial personnel: None
Listed entities (other than the Infosys Group) in which Salil holds
directorship and committee membership: Nil
Listed entities from which Salil has resigned in the
past three years: Nil
Remuneration proposed to be paid: As per the resolution at Item
no. 6 of this Notice read with explanatory statement thereto.
Key terms and conditions of reappointment: As per
the resolution at Item no. 6 of this Notice read with
explanatory statement thereto.
Date of first appointment to the Board, last drawn remuneration
and number of Board meetings attended: Salil was first
appointed to the Board on January 2, 2018, as Chief Executive
Officer and Managing Director. The details pertaining to his
appointment, remuneration, and number of meetings attended
are provided in the Corporate Governance report section of the
Integrated Annual Report 2021-22.
Notice of the 41st Annual General Meeting | 15
Infosys Limited Instructions for participation through VC
Please follow the below steps for registration and participation
Step 1:
Step 2:
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
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 90 or latest
Mozilla Firefox: Version 90 or latest
Microsoft Edge Chromium: Version 90 or latest
Safari: Version 12 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 41st 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.
16 | Notice of the 41st Annual General Meeting
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, the e-voting process has been enabled to all individual shareholders holding securities in demat
mode to vote through their demat account maintained with depositories and depository participants. Shareholders are advised to
update their mobile number and email ID in their demat accounts 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 the 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 redirected 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.
5. Shareholders / members can also download NSDL Mobile App ‘NSDL Speede’ facility by scanning
the QR code mentioned below for seamless voting experience.
Notice of the 41st Annual General Meeting | 17
Infosys Limited
Type of shareholders
Login method
Individual shareholders
holding securities in demat
mode with CDSL
1. Existing users who have opted for Easi / Easiest can log in using 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 the 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 the 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.
Individual shareholders
(holding securities in
demat mode) logging in
through their depository
participants
Important note: Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” and “Forgot Password”
options 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 the toll-free number: 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 call 022- 23058738 or 022 23058542-43
18 | Notice of the 41st Annual General Meeting
Infosys Limited 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 the 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
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) For members who hold shares in demat
account with CDSL
16-digit Beneficiary ID For example, if your Beneficiary ID is 12************** then
your User ID is 12**************
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 119918, then your User ID is
119918001***
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.
Notice of the 41st Annual General Meeting | 19
Infosys Limited 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 119918.
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
1. Shareholders may send a request to evoting@nsdl.co.in for procuring user ID and password for e-voting.
2.
If 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.
3.
4.
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.
Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution / Power of Attorney /
Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under “e-Voting” tab in their login.
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 the e-voting user manual for
shareholders available in the download section of www.evoting.nsdl.com or call the toll-free number: 1800 1020 990 /1800 224 430,
or send a request to evoting@nsdl.co.in, or contact Amit Vishal, Assistant Vice President, or Pallavi Mhatre, Senior 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.
20 | Notice of the 41st Annual General Meeting
Infosys Limited Information at a glance
Particulars
Time and date of AGM
Mode
Details
4:00 p.m. IST, Saturday, June 25, 2022
Video conference and other audio-visual means
Participation through video-conferencing
https://agm.onwingspan.com/InfosysAGM
Helpline number for VC participation
+91-80-4156 5555 / +91-80-4156 5777
Webcast and transcripts
Final dividend record date
Final dividend payment date
https://www.infosys.com/Investors/
Wednesday, June 1, 2022
Tuesday, June 28, 2022
Information of tax on final dividend 2021-22
https://www.infosys.com/investors/shareholder-services/dividend-tax.html
Cut-off date for e-voting
E-voting start time and date
E-voting end time and date
E-voting website of NSDL
Saturday, June 18, 2022
9:00 a.m. IST, Monday, June 20, 2022
5:00 p.m. IST, Friday, June 24, 2022
https://www.evoting.nsdl.com/
Name, address and contact details of e-voting service
provider
Name, address and contact details of Registrar and
Transfer Agent
Contact name:
Amit Vishal
Assistant Vice President
Pallavi Mhatre
Senior 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 Vice President
KFin Technologies 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 41st Annual General Meeting | 21
Infosys Limited 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, global
increase in wages including India and the US, change in the Indian regulations governing wages, restrictions on immigration in the US,
and corporate actions.
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, and are discussed in more detail in our Form 20-F filed with the US Securities and Exchange
Commission. 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, design, and production by Infosys Limited.
© 2022 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.
Infosys Integrated Report 2021-22 www.infosys.com
Continue reading text version or see original annual report in PDF
format above