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 ReportingFramework, 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