Plain-text annual report
Integrated Annual Report 2022-23
NAVIGATING CHANGE AT THE PACE OF AI
The context surrounding
an enterprise, created,
and influenced by multiple
inherently uncertain forces, can
significantly impact the fortunes
of a business. While this volatility
has come to be expected as normal,
not every business emerges from it having
tackled the situation with the same resilience.
Those that get a head start in preparing and taking
on the challenges are also the ones that come out of the
uncertainty with the ability to outperform in the recovery.
That does not necessarily mean rethinking one’s business
strategy, but rather rearticulating it to adapt. It’s really
about being judicious where to lean in and where to pull
back. In essence, it’s about protecting one’s capability
to innovate and propel forward while being deeply
disciplined when it comes to operations. Digitally
transformed companies have a distinct advantage here.
They can drive frictionless business throughout the supply
chain, serve customers at lower costs, and avoid resource-
intensive IT upgrades, unlike the digitally disadvantaged
who may have to wait for economic conditions to improve
before they can make progress.
Advanced technologies – especially AI in tandem with
cloud – are creating performance opportunities that are
reshaping these dynamics in significant ways. They are
helping companies to amplify human potential to take
on higher value work, boost people productivity and
rapidly create business value. From unlocking efficiencies
at scale and empowering the ecosystem to accelerating
growth, cognitively capable companies are unshackling
intelligence from data for experimentation as well as
the scale-out of AI to power greater efficacy and create
disruptive revenue streams.
Infosys is taking the AI-first approach to its own
transformation. We are bringing the power of AI, analytics,
and cloud to accelerate our own enterprise transformation,
even as we build incremental value from micro-changes,
to improve client service, reimagine business processes,
and boost productivity. Nearly 50,000 reusable intelligent
services, applied in over 25,000 instances, are amplifying
our employees to boost their productivity.
It is Infosys TopazTM – our AI-first services using generative
AI – that’s making it all possible. Both for us and our clients.
Today, 12,000+ AI use cases and 150+ pre-trained AI
models delivered by AI-first specialists and data strategists
are accelerating business value for enterprises the world
over. All this, while ensuring uncompromising ethics, trust,
privacy and compliance, and security of data and AI.
You’ll no doubt catch interesting glimpses of these exciting
possibilities and progress in this Integrated Annual Report.
It’s the same potential we see too, to help our clients
navigate change and move into a future filled with more
potential, and more shared advances.
Infosys Integrated Annual Report 2022-23
3
BOOKING HOLDINGS: BOOSTING THE RISK-RESILIENCE OF
BUSINESS
E-commerce fraud has evolved and increased with
the surge in online commerce since the pandemic.
Bad actors are launching more sophisticated attacks.
E-commerce losses to online payment fraud were
estimated at US$41 billion globally in 2022, making
cybersecurity an utmost priority for all digital
companies.
Booking Holdings is the world’s leading provider
of online travel and related services, offered to
consumers and local partners in more than 220
countries and territories through six primary
consumer-facing brands: Booking.com, Priceline,
Agoda, Rentalcars.com, KAYAK and OpenTable.
Booking Holdings’ mission is to make it easier for
everyone to experience the world.
Across their operations, Booking Holdings’ brands
have always been keen to ensure comprehensive
security powered by next-gen technology. To realize
this, the company teamed up with Infosys to ramp
up a Center of Excellence in Bucharest, Romania.
The Center delivers services across critical business
functions in cybersecurity, fraud management
and analytics and TRAC (Trust, Risk, Assurance and
Compliance). It also delivers services for financial
systems development and support, IT development
and support, application security, risk management,
audit management and account security consultancy.
Infosys TopazTM AI-first solution plays a key role here
in making these services truly cognitive. This initiative
is driving improved speed to market, more innovative
thinking and consistently rewarding business
outcomes for brands like Booking.com.
Efforts at Infosys strengthen this collaboration to
build innovative solutions in the travel domain.
Infosys is also looking to continuously upskill its
project team to build exceptional skill sets that can be
leveraged to build these focused solutions.
‘’Modern enterprises, with their digital footprint expanding past
traditional perimeters, are increasingly susceptible to cybersecurity
attacks. To be cyber-resilient, enterprises must embed security by
design and operational measures to adequately protect products and
services. To do this, they need to embrace AI-first threat management
solutions. We have successfully adopted this approach at Booking
Holdings and for our brands working collaboratively with Infosys.’’
Spencer Mott
Chief Security Officer – Booking Holdings & Booking.com
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Infosys Integrated Annual Report 2022-23
5
ACCELERATING THE AI-FIRST
JOURNEY FOR YOUR ENTERPRISE
Infosys Integrated Annual Report 2022-23 ACCELERATING THE AI-FIRST
JOURNEY FOR YOUR ENTERPRISE
MOLINA HEALTHCARE: MAXIMIZING VALUE FROM CLOUD
INVESTMENTS
Digital transformation of enterprises today is also
leading to data and AI transformation of businesses
bringing powerful capabilities to non-technical
users in the world of healthcare. Cloud remains a key
foundational capability necessary to accelerate value
generation on this journey.
Molina Healthcare, a FORTUNE 500 company,
provides managed healthcare services under the
Medicaid and Medicare programs and through
the state insurance marketplace. Through locally
operated health plans, Molina Healthcare serves
approximately 5.1 million Americans.
From first starting their cloud journey to enable
exponential efficiencies, Molina Healthcare has long
since evolved it to become a key driver of revenue
for businesses through the creation of cognitive
capabilities. That’s why, leveraging Infosys CobaltTM –
cloud services and solutions, for Molina Healthcare,
has also meant creating a foundation with ready
access for business users.
Molina Healthcare is committed to providing a wide
range of quality healthcare services to families and
individuals who qualify for government-sponsored
programs. Today, running business operations,
including their mission critical systems, with data-
and AI-powered capabilities on the cloud, has given
Molina Healthcare a first-mover advantage that few
others enjoy. Better business scalability and resilience
have improved the experience for their members.
Growth, for the business, is accelerated by adding
more participants from new untapped states. Time to
onboard these participants and costs to provide them
care have significantly reduced, thereby boosting
profitability.
But perhaps, most significantly, this cloud-first
journey that Molina Healthcare is on has reinforced
the company’s ability to realize its purpose – to
improve the lives and well-being of its members,
while making a positive impact in the communities
they serve.
‘’Growing our cloud capabilities has been integral to our digital
transformation. We also know that continuing to strengthen these
capabilities is the way for us to become an AI-first enterprise that will
enable to service our members seamlessly. Infosys is a trusted partner
for us on this journey.’’
Amir Desai
CIO, Molina Healthcare
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Infosys Integrated Annual Report 2022-23
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Infosys Integrated Annual Report 2022-23 ACCELERATING THE AI-FIRST
JOURNEY FOR YOUR ENTERPRISE
SIEMENS: BOOSTING THE EFFICIENCIES OF WORKFORCE
LEARNING
As companies seek to extend market leadership, skills
for their employees, especially in new technology
capabilities like generative AI, IoT, cybersecurity and
additive manufacturing, are becoming vital for long-
term success. Building efficiencies into the learning
path for organization-wide upskilling and reskilling is
high on the list of focus areas for business leadership.
With a rich history spanning over 175 years, Siemens
is a German multinational technology company
and one of the largest engineering companies in
the world. Staying ahead of the technology curve is
critical for Siemens to retain its leadership. This makes
rapid and effective upskilling of its large, diverse and
geographically spread workforce imperative.
Partnering with Infosys and leveraging Infosys
Wingspan, AI-first learning and talent transformation
platform, Siemens has reimagined its approach to
upskilling and learning. Infosys Wingspan draws
on Infosys TopazTM to bring in robust AI, including
generative AI capabilities. With Infosys, Siemens’
enterprise learning has stepped firmly into the
digital age – leading to the inception of My Learning
World harnessing Infosys Wingspan. It is the single
entry point into digital learning and the gateway
to personal upskilling and reskilling at scale for
Siemens employees, with AI to monitor and predict
learning, simultaneously acting as the digital brain
of the company.
My Learning World is amplified with AI-powered
algorithms that deliver a strong nudge framework
to integrate learning actively into the performance
culture of the organization. AI is also helping deeply
personalize the upskilling journey for learners. The
cognitive core of My Learning World also allows
leaders to track the progress that learners make and
continuously refocus efforts and content to deliver
improved outcomes.
As the exploration of generative AI tools for the
platform intensifies, the promise to make the learning
journey richer and more engaging is becoming real.
Some key generative AI-driven features include
automatic content generation, automatic creation
of learning objectives and AI-powered learning
assistants. Applying AI to the data from this platform
gives Siemens key insights into the learning habits
and skill trends, enhances search quality and learning
experience. And the results are encouraging –
My Learning World is the fourth most used platform
across Siemens, recording six million hours of
learning in total in fiscal 2022.
This AI-first journey to efficiently enhance their
digital skill quotient is helping Siemens foster a
culture of lifelong learning. It is enabling them to
build a resilient workforce that can adapt to rapid
technological changes in the industry.
‘At Siemens, we want to support our people in staying relevant in
a permanently changing environment by continuously evolving
functional and technical skills. Digitalization, with an AI-first approach,
is at the core of our strategy for the future. We are excited to have found
an effective partner in Infosys who can support us to bring greater
efficiencies to our employees’ learning and growth journey with My
Learning World. This is an important partnership for Siemens, and we
look forward to continuing to build on these learning experiences for
our employees.”
Daniela Proust
Senior Vice President, Head of Global Learning and Growth at Siemens
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Infosys Integrated Annual Report 2022-23
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Infosys Integrated Annual Report 2022-23 WSP: REDESIGNING BUSINESS OPERATIONS WITH INSIGHTS
Digitalization is both the force and the force
multiplier for the engineering sector to navigate
their next while planning, designing, managing, and
engineering communities to thrive.
WSP is one of world’s leading engineering and
professional services firms, developing creative,
comprehensive, and sustainable solutions for the
future. Equipped with an intimate understanding
of local intricacies, world-class talent and proactive
leadership, the company plans, designs, and
engineers solutions to uniquely complex problems.
Their partnership with Infosys will be enabling WSP’s
enterprise-wide internal digital transformation across
all core processes including project and portfolio
management, sales, procurement, finance, and
human capital management. The outcome WSP
aspires to, is the creation of an agile, responsive,
and unified organization that works synergistically
across their various entities and markets. The goal is
to continue to improve win ratios, cash flows, drive
efficient project management, talent management,
book closures and help onboard seamless integration
of new entities. This will require undertaking
large-scale business process transformation with
underlying agile cloud-led technologies to equip
various personas, including the project manager,
with better insights for informed decision making.
The project commenced by implementing a global
blueprint to addresses challenges around unique
industry-specific business processes, providing for a
robust business architecture and delivering intuitive
user experiences for all key stakeholders. Oracle ERP
cloud was chosen as the underlying cloud platform
with bolt-on extensions and intelligent automation
to support insights-led business redesign. The
solution drew support from a strong automation, and
embedded analytics backbone to deliver a unified
system with deep visibility and control.
WSP, in partnership with Infosys, has completed the
first deployment in Canada, one of the key regions.
Plans are now afoot to implement in the US, UK and
ultimately all global regions. This will enable WSP
to continue to drive strong project management
with trackable schedule and budget adherence,
streamlined flow of talent, effective management
of the sales pipeline, optimized pricing techniques
along with excellent risk management and controls.
“From improving planning, to impacting operational efficiency and
personnel training, insights-driven digital transformation is key to our
strategy to smoothly solve complex engineering challenges. This also
offers a way to continuously improve and prepare for a wide range of
business scenarios. We are glad to have Infosys partner with us in these
endeavors.’’
Chadi Habib
Chief Technology Officer and Head of Business Solutions, WSP
MAKING
BUSINESSES
SMARTER
ACCELERATING THE AI-FIRST
JOURNEY FOR YOUR ENTERPRISE
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Infosys Integrated Annual Report 2022-23
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Infosys Integrated Annual Report 2022-23 ACCELERATING THE AI-FIRST
JOURNEY FOR YOUR ENTERPRISE
MS AMLIN: INSIGHTS TO NAVIGATE FROM RISK MANAGEMENT
TO STRATEGIC RESILIENCE
Organizations in the insurance industry have recently
been severely targeted by threat actors due to the
huge volume of personally identifiable information
and sensitive customer financial data. To date, more
than 100 million users have had their personally
identifiable information compromised in this sector,
making cybersecurity an utmost priority.
MS Amlin is a leading insurer and reinsurer and is part
of the global top-10 insurance group MS&AD, with
three main legal entities’ operating in the Lloyd’s, UK,
Continental European and Bermudian markets. With a
300-year record, MS Amlin delivers quality service for
businesses facing the most complex and demanding
risks. Their areas of operation are mostly property &
casualty, marine and reinsurance markets.
security, vulnerability management and governance,
along with risk and compliance management. The
platform-centric approach for security tools and
controls are embedded with cognitive AI-modeled
use cases and playbooks for advanced threat
detection and response.
Identity is now a crucial aspect of cybersecurity;
if compromised, it can trigger many lethal server
attacks. Infosys has, for MS Amlin, mitigated the risk of
identify management by implementing SSO – single
sign-on and reconciliation of privileged accounts.
Infosys has also helped implement multi-factor
authentication and privilege access management
with industry-leading and best-of-breed products
and solutions.
MS Amlin has chosen Infosys as their cybersecurity
service provider to ensure comprehensive
security services powered by cognitive next-gen
security operations.
Network detection and response has also been
operationalized for MS Amlin to get deep and
detailed insights on the anomalies in their
environment.
Infosys offers enterprise-wide security controls
to secure MS Amlin’s IT estate, including identity
protection, network security, workplace and workload
Working in collaboration with MS Amlin, Infosys has
been able to protect the business from evolving
threats and elevate their security posture.
“Modern enterprises, with their digital footprint growing beyond
traditional perimeters, are becoming soft targets for cybersecurity
attacks. To be risk-resilient, enterprises must embed security by
design and embrace next-gen cognitive threat management
solutions. MS Amlin and Infosys Cybersecurity are working
collaboratively to establish next-gen security operations for
threat monitoring and incident response orchestration based on
AI hypothesis.”
Andy Hodgson
CISO, MS Amlin
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Infosys Integrated Annual Report 2022-23
13
Infosys Integrated Annual Report 2022-23 Contents
16
About this report
Corporate overview
18
19
20
26
About Infosys
Global presence
The Infosys Board of Directors
The Infosys leadership team
Performance overview
28
Business highlights
Chairman’s message
30
Letter to the Shareholder
32
ecognitions
Awards and
34
r
Approaching value creation
Our business context
38
Strategy
40
Value creation model
42
Delivering value
44
46
48
50
52
54
Financial Capital
Human Capital
Intellectual Capital
Natural Capital
Manufactured Capital
Social and Relationship Capital
Statutory reports
Board’s report
58
70
Annexures to the Board’s report
100 Management’s discussion and analysis
Corporate governance report
117
Investor contacts
155
Risk management report
157
Business Responsibility and Sustainability Report
161
205
CEO and CFO certification
Financial statements
Standalone
206
Consolidated
290
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14
15
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23
About this report
An introduction to the report
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 second Integrated Annual Report of Infosys
Limited. Our Integrated Annual Report provides a
comprehensive overview of our company’s performance
and progress over the past year. It includes quantitative
and qualitative disclosures on material topics, such as
financial performance, environmental sustainability, social
responsibility, 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 2022-23 has been
prepared in accordance with the International Integrated
Reporting Framework, developed by the International
Integrated Reporting Council (IIRC), the GRI Standard and
SASB Standard. 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). We have also mapped our
contribution to the Sustainable Development Goals (SDGs)
through the Infosys ESG Vision and ambitions.
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 applicable SEBI Regulations.
Auditors’ reports
The Auditors’ Report for fiscal 2023 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 2023 from
Makarand M. Joshi of Makarand M. Joshi & Co., 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
Select non-financial sustainability disclosures in this
Integrated Annual Report are verified by KPMG Assurance
and Consulting Services LLP. The Independent Assurance
Statement for our BRSR disclosures is available as part of
this Integrated Annual Report.
Management’s review
This Integrated Annual Report has been reviewed and
approved, for publication, by the Management of the
Company.
Feedback
Share your feedback about the report to
investors@infosys.com
16
Our capitals
The capitals, as described below, provide a holistic perspective of how short, medium and long-term value is created
and preserved at Infosys. The capitals are simultaneously inter-dependent and mutually beneficial as they create
synergy across the organization. Our strategy and ESG framework help to channel all inputs through the capitals to
manifest into the most impactful outputs and outcomes for all stakeholders.
Financial Capital
We obtain our Financial Capital through
the funds generated from our business
operations and financing activities.
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. Our focus is on
ensuring a sustainable and profitable
financial position.
Human Capital
Nurturing talent for the future is
essential for our continued success.
Our 5C model for Engagement –
Connect, Collaborate, Celebrate, Care,
and Culture, is designed to strengthen
and reinforce our culture so that it is
experienced uniformly and positively
by employees – remote or in office.
We have long-established paths for
employee upskilling and reskilling, and
our efforts have been well rewarded,
providing value to our people and us.
Natural Capital
Climate action has been a key focus
area for our Natural Capital. We have
been at the forefront of the ESG
movement and became carbon-
neutral in 2020 – 30 years ahead of the
timeline set by the Paris Agreement.
Today, we incorporate environmental
considerations into everything that we
do, as we power the journey towards a
sustainable world for all.
Manufactured Capital
As strong advocates of environmental
stewardship extending beyond
our boundaries, our Manufactured
Capital includes our energy efficient
offices, data centers, innovation hubs,
digital studios, and our technology
infrastructure across the globe. With
the highest-rated green buildings
on our campuses and investments
in collaborative tech infrastructure,
we offer productive, safe and healthy
workplaces for employees, clients and
contractors.
Intellectual Capital
Our Intellectual Capital is driven by
agility, flexibility, and innovation.
We are committed to working
with experts, academia, and other
stakeholders to develop new products
and services that meet the needs
of our customers and communities.
With iCETS, the Living Labs, and the
Infosys Innovation Network, we have
a broad portfolio of solutions across
industry segments. The Infosys Prize
and Aarohan Social Innovation awards
recognize outstanding achievements
by researchers and scholars and provide
a platform for innovators and social
entrepreneurs, respectively.
Social and Relationship
Capital
Our Social and Relationship Capital
guides us as we bring the interests
of our stakeholders to the fore. As
enterprises focus on reshaping
their businesses to prepare for the
digital era, we are helping our clients
drive transformation and sustain
gain from their large-scale business
transformation efforts. Our Foundations
focus on CSR efforts globally across
the domains of education, healthcare,
women empowerment, sustainability,
rural development, art and culture,
and disaster relief. Our social ambition
focuses on serving the development
of people by shaping a future with
meaningful opportunities for all.
17
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Corporate overview
About Infosys
pioneered the Global Delivery Model
and became the first IT company
from India to be listed on NASDAQ.
Even as Infosys first turned carbon
neutral in 2020 – 30 years ahead of
the 2050 timeline set by the Paris
Agreement, we articulated our ESG
Vision 2030, stating our commitment
to shape and share solutions that
serve the development of businesses
and communities. This reaffirms
our long-standing commitments
focused across core areas including
climate change, technology for
good, diversity and inclusion,
energizing local communities, ethics
and transparency, data privacy and
information management.
3,43,234
Employees
1,872
Active clients
`1,46,767 cr
Total revenues in fiscal 2023
Infosys is a global leader in next-
generation digital services and
consulting. We enable clients in more
than 56 countries to navigate their
digital transformation.
With over four decades of experience
in managing the systems and
workings of global enterprises,
we expertly steer clients, as they
navigate their digital transformation
powered by the cloud. We enable
them with an AI-powered core,
empower the business with agile
digital at scale and drive continuous
improvement with always-on
learning through the transfer of
digital skills, expertise, and ideas
from our innovation ecosystem.
We are deeply committed to being
a well-governed, environmentally
sustainable organization where
diverse talent thrives in an inclusive
workplace.
Established in 1981, from a capital of
US$250, we have grown to become a
company with a market capitalization
of approximately US$72.35 billion.
In our journey of over 40 years, we
have catalyzed India’s transformation
into the global destination for
software services talent. We
18
Our Purpose
To amplify human potential
and create the next
opportunity for people,
businesses and communities
Our Values
Our Company’s Code of Conduct
stands on the strong foundation
set by our values, encapsulated in
the acronym C-LIFE.
Client value
To surpass client expectations
consistently
Leadership by example
To set standards in our business
and transactions and be an
exemplar for the industry and
ourselves
Integrity and transparency
To be ethical, sincere and open in
all our transactions
Fairness
To be objective and transaction-
oriented, and thereby earn trust
and respect
Excellence
To strive relentlessly, constantly
improve ourselves, our teams, our
services and products to become
the best
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R
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23
Corporate overview
The Infosys Board of Directors
Note: The Board and Committee composition is as of March 31, 2023.
Nandan M. Nilekani
Chairman
Salil Parekh
Chief Executive Officer and Managing Director
Bobby Parikh
Independent Director
Chairperson
Audit Committee
Member
Risk Management Committee
Stakeholders Relationship Committee
Chitra Nayak
Independent Director
Chairperson
Environmental, Social and Governance Committee
Member
Corporate Social Responsibility Committee
Risk Management Committee
Stakeholders Relationship Committee
D. Sundaram
Lead Independent Director
Chairperson
Nomination and Remuneration Committee
Risk Management Committee
Member
Audit Committee
Stakeholders Relationship Committee
Cybersecurity Risk Sub-committee
20
Michael Gibbs
Independent Director
Chairperson
Stakeholders Relationship Committee
Cybersecurity Risk Sub-committee
Member
Audit Committee
Nomination and Remuneration Committee
Risk Management Committee
Govind Iyer
Independent Director
Chairperson
Corporate Social Responsibility Committee
Member
Nomination and Remuneration Committee
Environmental, Social and Governance Committee
Risk Management Committee
Cybersecurity Risk Sub-committee
Uri Levine
Independent Director*
Member
Corporate Social Responsibility Committee
Environmental, Social and Governance Committee
Risk Management Committee
Cybersecurity Risk Sub-committee
* Retired on April 19, 2023
21
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 The Infosys Board of Directors
Date of appointment
August 24, 2017
Tenure on Board
5.6 years
Term ending date
NA
Shareholding
4,07,83,162 shares (0.98%)
Nandan M. Nilekani
Chairman and Non-Executive and
Non-Independent Director (Promoter)
Age: 67
Nationality: Indian
Board memberships – Indian listed companies
Infosys Limited: Non-Executive and
Non-Independent Director
Committee details (1)(2)
Member: Nil
Chairperson: Nil
D. Sundaram
Lead Independent Director
Age: 70
Nationality: Indian
Areas of expertise
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Date of appointment
July 14, 2017
Date of reappointment
July 14, 2022
Tenure on Board
5.7 years
Term ending date
July 13, 2027
Shareholding
Nil
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Crompton Greaves Consumer Electricals Limited:
Independent Director
GlaxoSmithKline Pharmaceuticals Limited:
Independent Director
Committee details (1)(2)
Member: 5
Chairperson: 2
Areas of expertise
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Read full profile at: https://www.infosys.com/about/management-profiles/nandan-nilekani.html
Read full profile at: https://www.infosys.com/about/management-profiles/d-sundaram.html
Salil Parekh
Chief Executive Officer and
Managing Director
Age: 58
Nationality: Indian
Board memberships – Indian listed companies
Infosys Limited: Executive Director
Committee details (1)(2)
Member: Nil
Chairperson: Nil
Date of appointment
January 02, 2018
Date of reappointment
July 01, 2022
Tenure on Board
5.2 years
Term ending date
March 31, 2027
Shareholding
7,86,658 shares (0.02%)
Areas of expertise
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Date of appointment
July 13, 2018
Date of reappointment
July 13, 2021
Tenure on Board
4.7 years
Term ending date
July 12, 2026
Shareholding
Nil
Michael Gibbs
Independent Director
Age: 65
Nationality: American
Board memberships – Indian listed
companies
Infosys Limited: Independent Director
Committee details (1)(2)
Member: 2
Chairperson: 1
Areas of expertise
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Read full profile at: https://www.infosys.com/about/management-profiles/salil-parekh.html
Read full profile at: https://www.infosys.com/about/management-profiles/michael-gibbs.html
1.
2.
In the committee details provided, every chairpersonship is also considered as a membership.
For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
1.
2.
In the committee details provided, every chairpersonship is also considered as a membership.
For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are
(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are
considered.
3. Details are as of March 31, 2023.
22
considered.
3. Details are as of March 31, 2023.
23
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 The Infosys Board of Directors
Bobby Parikh
Independent Director
Age: 59
Nationality: Indian
Govind Iyer
Independent Director
Age: 60
Nationality: Indian
Date of appointment
July 15, 2020
Tenure on Board
2.7 years
Term ending date
July 14, 2023
Shareholding
6,887 shares (0.00%)
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Biocon Limited: Independent Director
Indostar Capital Finance Limited: Independent
Director
Committee details (1)(2)
Member: 7
Chairperson: 4
Areas of expertise
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Date of appointment
January 12, 2023
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Tenure on Board
0.2 years
Term ending date
January 11, 2028
Shareholding
991 shares (0.00%)
Committee details (1)(2)
Member: Nil
Chairperson: Nil
Areas of expertise
• Diversity
• Global business
• Leadership
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
Read full profile at: https://www.infosys.com/about/management-profiles/bobby-parikh.html
Read full profile at: https://www.infosys.com/about/management-profiles/govind-iyer.html
Chitra Nayak
Independent Director
Age: 60
Nationality: American
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Committee details (1)(2)
Member: 1
Chairperson: Nil
Date of appointment
March 25, 2021
Tenure on Board
2 years
Term ending date
March 24, 2024
Shareholding
Nil
Uri Levine
Independent Director
Age: 58
Nationality: Israeli
Areas of expertise
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Date of appointment
April 20, 2020
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Tenure on Board
2.9 years
Term ending date
April 19, 2023
Shareholding
Nil
Committee details (1)(2)
Member: Nil
Chairperson: Nil
Areas of expertise
• Diversity
• Global business
• Leadership
• Information Technology
• Cybersecurity
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Read full profile at: https://www.infosys.com/about/management-profiles/chitra-nayak.html
Read full profile at: https://www.infosys.com/campaigns/profile-uri-levine.html
1.
2.
In the committee details provided, every chairpersonship is also considered as a membership.
For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
1.
2.
In the committee details provided, every chairpersonship is also considered as a membership.
For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are
(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are
considered.
3. Details are as of March 31, 2023.
24
considered.
3. Details are as of March 31, 2023.
25
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Corporate overview
The Infosys leadership team*
Salil Parekh
Chief Executive Officer and Managing
Director
Nilanjan Roy
Chief Financial Officer
Anand Swaminathan
Segment Head – Communication,
Media and Technology
Anant Raghavendra Adya
Group Practice Engagement
Manager – Cloud Services
Anantharaman Radhakrishnan
Chief Executive Officer &
Managing Director – IBPM
Andrew Groth
Industry Head – Financial Services,
Healthcare, Insurance and
Life Sciences
Martha King
Chief Client Officer
Mohammed Rafee Tarafdar
Chief Technology Officer,
Global Delivery
Narsimha Rao Mannepalli
Co-Head of Delivery, Infosys
Rajeev Ranjan
Service Offering Head –
Manufacturing, India & Japan
Business Units
Anup Kapoor
Global Head Operations – IBPM
Arun Kumar H.R.
Head – Business Strategy, Planning
and Operations
Ashiss Kumar Dash
Segment Head – Energy, Utilities,
Resources and Services
Balakrishna D.R.
Service Offering Head – Energy,
Utilities, Communications, Resources
& Services, AI and Automation
Rajesh Varrier
Service Offering Head and Head –
Americas Operations
Richard Lobo
Head, HR – Infosys Limited
Ruchir Budhwar
Industry Head, Manufacturing
Satish H.C.
Co-Head of Delivery, Infosys
Deepak Bhalla
Chief Risk Officer & Global Head –
Business Finance and Operations
Planning
Dennis Kantilal Gada
Industry Head, Financial Services
Dinesh R.
Co-Head of Delivery, Infosys
Hemant Lamba
Head – Strategic Global Sourcing
Shaji Mathew
Group Head – Human Resources
Sumit Virmani
Chief Marketing Officer
Sunil Kumar Dhareshwar
Global Head – Corporate Accounting
& Taxation and Group Head –
Facilities, Infrastructure and Security
Umashankar Lakshmipathy
Group Practice Engagement
Manager, Cloud and Infrastructure
Services
*List as of May 29, 2023
Inderpreet Sawhney
Group General Counsel and
Chief Compliance Officer
Jasmeet Singh
Segment Head – Manufacturing
Jayesh Sanghrajka
Deputy Chief Financial Officer
Karmesh Gul Vaswani
Segment Head – CPG, Logistics
& Retail
26
27
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Performance overview
Business highlights
Revenues
₹ 1,46,767cr
20.7% growth Y-o-Y
15.4% CC growth Y-o-Y
Digital revenues
(as a % of total revenue)
62.2%
25.6% CC growth Y-o-Y
Operating margin
21.0%
Robust operating margin
Basic earnings per share
(par value of ₹ 5 each)
57.63
9.7% growth Y-o-Y
Consolidated cash and
investments(2)
₹ 31,286cr
Continue to main strong
liquidity position
Infosys achieved industry-
leading revenue growth of
15.4% with healthy operating
margin of 21.0% for fiscal
2023. Our ESG Vision 2030 and
ambitions continue to drive
value for all our stakeholders.
Buyback completed
₹ 9,300cr
at an average price of ₹ 1,539.06
Return on equity
31.2%
Improved by 2.1% over
the last fiscal
Free cash(1)
₹ 20,443cr
Women employees
39.4%
Steady progress towards
gender diversity goals
Carbon offset programs
2,40,000+
Rural families continue to benefit
Tech for Good
114mn +
Lives empowered via our Tech for
Good solutions in e-governance,
education and healthcare
Carbon neutrality
Carbon neutral for
4 years in a row
Scope 1, 2 and 3 emissions
Digital skilling
8.5mn
People are a part of our digital
skilling initiatives
~50,000
Fresh graduates hired globally
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, and others.
Key trends
FCF conversion at 84.8% of net profit
In ₹ crore, except per equity share data
Large deal TCV
(Total contract value in US$ billion)
$9.8b
Sustained momentum in large
deal wins continues
Dividend per share (in ₹)
34.0
9.7% growth Y-o-Y
Number of US$ 50 million + clients
75
Strong client metrics with increase
of 11 clients Y-o-Y
Revenues(1)
Net profit(1)(2)
Basic earnings per share (in ₹)(1)
Market capitalization
FY 2023
1,46,767
24,095
57.63
FY 2022
1,21,641
22,110
52.52
FY 2021
1,00,472
19,351
45.61
FY 2020
FY 2019
90,791
16,594
38.97
82,675
15,404
35.44
5,92,394
8,02,162
5,82,880
2,73,214
3,24,448
In US$ million, except per equity share data
FY 2023
FY 2022
Revenues(1)
Net profit(1)(2)
Basic earnings per share (in ₹)(1)
Market capitalization
Notes:
(1) Based on IFRS consolidated financial statements
(2) Attributable to owners of the Company
18,212
2,981
0.71
72,351
16,311
2,963
0.70
104,706
FY 2021
13,561
2,613
0.62
79,760
FY 2020
12,780
2,331
0.55
34,966
FY 2019
11,799
2,199
0.51
47,614
28
29
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Performance overview
Chairman’s message
Navigating uncertainty
If there is one overriding theme that defines our current
world, it is that it is suffused with uncertainty. The placid
and the predictable are behind us as each new day brings
new inputs and new events that derail the carefully-crafted
models we have constructed of the world around us. The
cocktail of inflation, interest rates, geopolitics, war, demand
volatility, supply chain dislocations, the shift from efficiency
to resilience and security, all stirring quickly and without
warning, is what’s before us. In any week, we may oscillate
from caution to optimism and back to caution based on
the news of the day.
Such times of intense uncertainty, great short-term
pressure, and crunched resources require that companies
must become better, more efficient in their ability to be
resilient in the present while also securing their future
growth. This is easier said than done. The extreme volatility
that surrounds us creates so many probable future states,
that it simply isn’t prudent for businesses to plan to
succeed in any one anticipated future scenario. Instead, we
need to develop the flexibility to be able to avoid limiting
choices, reduce concentration risk, quickly adapt, and learn
to thrive in any new reality.
The era of optionality is upon us.
Optionality can take various forms. In our IT infrastructure,
it is the ability to dynamically reconfigure the way we
work – remotely, in office or hybrid. In the area of talent, it
is about building and deploying agile learning platforms
so that our people can hone their skill sets to match
new demand and new technologies. It is about having a
digital-first and AI-first business architecture which can
be constantly configured. It is finding the right balance
between retaining the core of a company and working
with partners on others. Optionality must be ingrained in
strategy and execution.
Our CEO, Salil Parekh, and his global leadership team,
realized early on the value that advanced digital
technologies like AI and cloud, and more recently,
generative AI, can bring to imagine and execute for
multiple options in the future. They came together as
One Infosys to orchestrate teams that lead the charge to
continually transform Infosys into an organization that truly
realizes human-machine synergies, from fundamentally
rethinking organizational design to segmenting cognitive
tasks to get the right balance between people, technology,
and process. Today, Infosys is steadily progressing towards
a future where we don’t just solve immediate business
30
problems, but continually innovate and architect for
challenges that may emerge in the future. We build it
for ourselves first, and then, deeply rooted in our own
experience, take it widely to our clients.
The awesome possibilities of generative AI, we know from
our own journey to becoming an AI-first enterprise, is not
without its risks. The problems of AI hallucination, systemic
biases, lack of explainability along with plenty of practical,
ethical and intellectual property-related issues remain open
and up for debate. We also know, from our experience,
that the path to scaling AI enterprise-wide is non-linear.
Often, organizations, seeking to mine value from data and
AI models, successfully undertake pilots but fail to factor in
what it will take to scale value across the whole enterprise.
As demands increase, data volumes grow, and complexity
rises, companies find themselves unable to surmount the
associated challenges and start to question the path to
value. Navigating to value-at-scale from AI and retaining
the larger strategic vision while breaking down the tasks
into sequential small wins, is not always intuitive or simple.
With our AI-first strategy, Infosys is guided by that road
map. We are also bringing to our global clients the ability
to accelerate business value and amplify human potential
using AI technologies with Infosys TopazTM.
The digital transformation of every industry and every
business, over the last several years, has laid the foundation
to create optionality as we navigate the way forward.
Our clients have always trusted us to assist them not only
to make the right digital investments but to safeguard
these investments for their future. Today, we are excited
by the opportunity and humbled by the responsibility we
have to enable them to bring all their digital capabilities
together to execute quickly and effectively for now, while
developing multiple options to amplify their competitive
advantage and market leadership in an uncertain future.
Our client relevance has never been so compelling, our
investment in employees as continuous and consistent,
and our purpose so keen. We are ready to co-create with
our clients and our entire ecosystem a flexible future that
puts people first and benefits the broader society even as
it propels business forward. After all, like many have said,
imagination is our invisible power to create all things. Our
future can be as bright as we imagine it to be.
Bengaluru
May 29, 2023
Nandan M. Nilekani
Chairman
Nandan M. Nilekani
Chairman
31
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Performance overview
Letter to the Shareholder
Dear shareholder,
Financial year 2023 was a strong year for our business.
In FY23, we saw growth of over 15%, operating margins
of 21%, and free cash flow of US$2.5 billion. Our attrition
reduced for each quarter of the year.
With the changing economic environment, we positioned
our Company to work with clients for their digital
transformation as well as their cost efficiency and
automation programs, enabling us to support them in two
critical areas of interest.
We have developed a strong set of capabilities in
generative artificial intelligence to enhance how we enable
our clients to derive value. These capabilities are available
to all our clients in the form of Infosys TopazTM.
Our Cobalt capabilities for the cloud continue to resonate
with our clients. Our platforms, including Finacle for banks,
McCamish for insurance, Equinox for commerce, and Helix
for healthcare, are creating strong impact with clients.
During the year, we were recognized by Brand Finance
among the top three most valuable IT services brands
globally.
We continue to deepen our engagement with our clients.
The number of clients with over US$100 million in revenue
for the year was at 40. The number of clients with over
US$50 million in revenue for the year was at 75. Our large
deal intensity was strong during the year. We had 95 large
deals with a value of US$9.8 billion in the year. We see
our One Infosys approach helping support our clients by
bringing all our capabilities and the strength of our entire
employee-base to work for their benefit.
We recruited over 50,000 college graduates in the year and
ended the year with over 3,40,000 employees. At the end
of the year, 39% of our employees were women.
Our learning ecosystem enabled over 5.5 million learning
days for our employees during the year.
Last year we returned US$3.1 billion to our shareholders –
US$1.7 billion as dividend and US$1.4 billion through our
share buyback program.
At the end of the financial year, we were the leading
company among our peers in total shareholder return over
the past five years.
We remain committed to the communities we live and
operate in. With the work of Infosys Foundation, we
support a variety of social causes, including creating
positive impact in healthcare, education, sustainability, and
women empowerment. Our Infosys Springboard initiative
continues to help build digital skills by providing free
learning programs to millions of people around the world.
In the past few quarters, we have seen the global
economy dealing with inflation, interest rate increases,
and changes in demand environment for companies in
various industries. Our strength in digital, cloud, and in
automation, along with cost efficiency capabilities have
held us in good stead. These will continue to be critical in
the evolving economic environment.
As I look ahead, given the trust of our clients, the
dedication of our employees, the strength of our
capabilities, our One Infosys approach, and the guidance
of our Board, I remain confident of our ability to serve our
clients and continue to create impact for them.
With my warmest regards,
Bengaluru
May 29, 2023
Salil Parekh
Chief Executive Officer and Managing Director
Sd/-
32
33
Salil Parekh
Chief Executive Officer and
Managing Director
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Performance overview
Awards and recognitions
ESG
Recognized as a constituent of the
Dow Jones Sustainability World
Index for 2022
Awarded HFS OneOffice™ Award in the
Sustainability category
Secured a place in CDP’s annual
‘A List’ for leadership in corporate
transparency and performance on
climate change
Recognized as a leader in Everest
–
Sustainability Enablement
Technology Services PEAK Matrix®
Assessment
Ranked as a leader in HFS Top 10:
Sustainability Services, 2022
Infosys BPM won the Best CSR
Impact Award at the Corporate Social
Responsibility Summit & Awards 2023
by UBS Forum
Recognized as a top ESG performer in
2023 by Sustainalytics
Infosys topped the charts in the
CRISIL ESG Leadership Rankings
and was featured in the CRISIL
Sustainability Yearbook, 2022 for the
second consecutive year
Secured an ‘A
Assessment
’ rating on MSCI ESG
A
Recognized by EcoVadis with a Gold
medal for the seventh year in a row
Recognized as one of
the 2023 World’s Most
Ethical Companies® by
Ethisphere
Recognized in the LEADERSHIP
category in the Indian Corporate
Governance Scorecard Assessment by
Institutional Investor Advisory Services
(IiAS) for the seventh year in a row
Honored at the Asset ESG Corporate
Awards 2022 with a ‘Platinum
Award for excellence in ESG’,
‘Best Investor Relations Team’, ‘Best
initiative in Diversity and Inclusion’,
and ‘Best initiative in Environmental
Responsibility’
34
Won the FE CFO Awards 2023 in the
Large Enterprises - Servicing Sector
category.
Won Treasury Today Asia’s Top
Treasury Team 2022 award at the
Adam Smith Awards Asia 2022
Recognized as one of the “Most
Honored” companies, receiving
multiple awards at the 2022 All-
Asia Executive Team Rankings from
Institutional Investor
Business
Ranked in the Top 3 IT Services
Brands in the world and among
the Top 150 Most Valued Brands by
Brand Finance Global 500 2023 report
Won the ‘Most
Outstanding Company
in India – IT Services
Sector’ in Asia’s
Outstanding Companies
Poll 2022 by Asiamoney
Named in AVTAR Top 10 Best
Companies for Women in India
list in 2022
Recognized among Kantar’s global 100
most valuable brands in 2022
Recognized as UK’s Best Workplaces™
in Tech 2022 by Great Place to Work®
Infosys InStep Ranked as the ‘Best
Internship Program’ in the 2023
Vault Firsthand Rankings
Infosys rated as “Most Noteworthy”
Company by DiversityInc, USA
Recognized among Mexico’s Best
HR leaders of 2022 by Great Place
to Work®
Recognized amongst India’s Best
Workplaces™ for Women 2022 by
Great Place to Work®
Won the Gold Award at the
Brandon Hall Group Excellence in
Technology Awards
Recognized as a Global Top
Employer 2023 by the Top
Employers Institute for the 3rd
consecutive year
Won the ICAI Sustainability
Reporting Awards 2021-22 for Gender
Equality
Infosys recognized as the Champion
of Inclusion in the Most Inclusive
Companies Index (MICI) and featured
in the “100 Best – Hall of Fame” by
Avtar & Seramount, 2022
Won the Economic
Times Best
Organizations for
Women Award 2023
Recognized as a Top Employer in
22 countries across Europe, Middle
East, Asia Pacific, and North America
for best-in-class HR practices and
processes
Infosys received the Great Place to Work® Certification across five
regions including India, Australia, United Kingdom, Germany, USA,
Canada and Mexico. Infosys BPM received the Great Place to Work®
Certification in the Philippines
Positioned as a leader in HFS Top
10: Capital Markets Services, 2022
Awarded HFS
OneOffice™ Award
in the Innovation
Ecosystem category
Recognized as ‘GSI Innovation
Partner of the Year 2022’ at
Snowflake Summit
Winner of the 2022 Microsoft
Security Modern Endpoint
Management Partner of the Year
Award
Recognized as the Top Service
Provider Across Nordics in
the Whitelane Research and PA
Consulting IT Sourcing Study 2023
Infosys BPM won in the
International Project of the Year
category with Telefonica UK, at
the Global Sourcing Association
(GSA) UK Awards 2022
35
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23
Awards and recognition
Infosys won the 2022 Marketing
Excellence Gold Award from
Information Technology Services
Marketing Association (ITSMA) for
Infosys Cobalt
Infosys, along with client Lanxess
recognized as a winner in the
“Workplace of the Future” category
in 2022 ISG Paragon Awards™ EMEA
EdgeVerve named “Innovator” in
the Computer Vision Category
at the 2022 NASSCOM AI Game
Changer Award
Infosys BPM announced
as a winner in the
Telecommunications Project of
the Year category with BT-EE, at
the Global Sourcing Association
(GSA) UK Awards 2022
Infosys ranked among the Top 5
employers in India for the second
year in a row, recognized for industry
leading employee practices by
LinkedIn Top Companies 2022
Infosys Finacle won the ‘Best Core
Banking System Initiative in
partnership with Bank Raya’ and
‘Best Retail Bank in partnership
with Axis Bank’ at the Retail Banker
International Asia Trail blazer
Awards 2023
Infosys Finacle positioned as a Leader
in The Everest Group PEAK Matrix®
for Wealth Management Products
Provider 2023 report
EdgeVerve awarded the Gold GLOBEE
Awards for Disruptor Company of the
Year in Automation and Productivity
Infosys BPM and Rio Tinto
won the SSON North
America Impact Award
2023, in the Business
Resiliency category
Infosys BPM recognized as:
• Leader & Star Performer in Everest
Group Capital Markets Operations PEAK
Matrix® Assessment 2023
• Leader in Everest Group Marketing
Services PEAK Matrix® Assessment 2023
• Leader in the NelsonHall Financial
Services Cloud, SaaS & BPaaS NEAT 2023
• Leader and Star Performer in Everest
Group’s Finance and Accounting
Outsourcing (FAO) PEAK Matrix®
Assessment
• LEADER in Nelson Hall NEAT: Supply
Chain Transformation 2022
• LEADER in Everest Group Financial Crime
& Compliance Operations – Services
PEAK Matrix® Assessment 2022
• Leader in the 2022 Gartner® Magic
Quadrant™ for Finance and Accounting
Business Process Outsourcing
Infosys recognized as a leader in
Forrester Wave™
• Cloud Migration and Managed Service
Partners in Asia Pacific, Q4 2022
• Multicloud-Managed Services Providers,
Q1 2023
Infosys positioned as a leader in the
2022 Gartner® Magic Quadrant™ for
• Oracle Cloud Applications Services,
Worldwide
• SAP S/4HANA Application Services,
Worldwide
• IT Services for Communications Service
Providers, Worldwide
Infosys recognized as a leader in ISG
Provider Lens™
• ServiceNow Ecosystem Partners in U.S.
and Australia 2022 Quadrant Report
• Power & Utilities Industry - Services and
Solutions 2022 study in the US
• Digital Business Enablement and ESG
Services in US, UK, Nordics, Germany,
Australia and Brazil
• Next-Gen ADM Services 2022 ISG
Provider lens™ study in US
• System Integration (SI) Capabilities on
Amazon Web Services (AWS) 2022
• ServiceNow Services 2022
• System Integration (SI) Capabilities on
Microsoft Azure 2022
• Software Product Engineering Services
2023
• System Integration (SI) Capabilities on
Google Cloud Platform (GCP) 2022
• Workplace Communication and
Collaboration (WCC) Services 2023
• Application and Digital Services (ADS)
in Property & Casualty (P&C) Insurance
2023
• Risk and Compliance in BFS IT Services
2023
• Application and Digital Services (ADS) in
Life and Annuity (L&A) Insurance 2023
• Advanced Analytics and Insights (AA&I)
Services 2023
• Digital Transformation Consulting
Services 2023
Infosys positioned as a leader in
NelsonHall’s
• End-to-End Cloud Infrastructure
Management Services 2022
• Supply Chain Transformation 2022
• Mortgage & Loan Services 2022
• Financial Services Cloud NEAT, BPaas
NEAT, and SaaS NEAT 2023
Infosys ranked as a leader in HFS
Horizons:
• Cloud Native Transformation, 2022
• The Best Service Providers for Retail
Banking, 2023
• Freight and Logistics Digital Services
2022-23
• Life Sciences Digital services 2022-23
• Utilities Digital Services 2022–2023
• Manufacturing Digital Services 2022–
2023
• CPG Digital Services 2022-23
• Hybrid Enterprise Cloud Services 2022-
2023
Infosys ranked as a leader in
the IDC MarketScape’s Vendor
Assessments in
• Worldwide Cloud Professional Services
• Worldwide Intelligent Automation
• Digital Engineering Service Providers,
Services
2023
• Metaverse Services Providers 2023
Infosys ranked as a leader in
Constellation ShortList™
• Blockchain Technology Services
• Campaign to Commerce: Best-of-Breed
Commerce Platforms
• Digital Transformation Services (DTX):
Global
• Public Cloud Transformation Services:
Global
• AI-Driven Cognitive Applications
• Customer Experience (CX) Operations
Services: Global
• Metaverse Design and Services
• Innovation Services and Engineering
• Learning Marketplaces
• Microsoft End-to-End Service Providers
Infosys positioned as a leader
in Avasant’s RadarView™
assessments in
• Salesforce Services 2022
• Internet of Things Services 2022
• Cybersecurity Services 2022
• Applied AI and Advanced Analytics
Services 2022
• Digital Master’s 2022
• Worldwide SAP Implementation
Services 2022
• Asia/Pacific SAP Implementation
Services 2022
• Asia/Pacific Salesforce Implementation
Services 2022
• Worldwide Manufacturing Service Life-
Cycle Management Strategic Consulting
2022
• EMEA Service Providers for Energy
Transition and New Business Models for
Oil and Gas Companies 2022
• EMEA Industrial Internet of Things
Service Providers for Oil and Gas
Companies 2022
• Worldwide Manufacturing Intelligence
Transformation 2023
• Worldwide Manufacturing Intelligence
Transformation Strategic Consulting
2023
• Worldwide Professional Services
Firms for Mining Operational Process
Optimization 2023
• Asia/Pacific Intelligent Digital Workplace
Services 2023
Recognized as a leader in Everest’s
PEAK Matrix Assessment in
• Data and Analytics (D&A) Services 2022
• Healthcare Payer Digital Services 2022
• Oracle Cloud Applications (OCA)
Services for Europe
36
37
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 grow, suppliers look forward to long-
term relationships; communities seek
improved lives, while governments
and regulators expect good
governance and legal compliance.
Infosys continues to deliver value to
all its stakeholders through prudent
and responsible business decisions,
services and operations.
During fiscal 2023, Infosys extended
adoption of the integrated Enterprise
Risk Management framework across
the organization, strengthening
its risk management program
significantly. While the Company
tracks several risks to its business, the
top risks and mitigation, along with
emerging risks, are available in the
Risk management report.
Approaching value creation
Our business context
Technology is transforming
businesses in every industry
around the world in a profound and
fundamental way. In fiscal 2023, we
saw emerging technologies, like
generative AI, 5G, Low Code No
Code, shape the future of industries.
Responsible business approaches,
including embracing ESG, have
gained traction. We continued to
witness businesses attempting to
reimagine their cost structures,
increase business resilience and
agility, personalize experiences
for customers and employees,
and launch new and disruptive
products and services. Enterprises
are leveraging models of the
digital era to extend the value of
existing investments and, in parallel,
transform and future-proof their
business. The need for professionals
who are highly skilled in both
traditional and digital technology
areas are driving businesses to
build strategic technology and
IT partnerships to realize their
transformation journeys.
We are also in the third wave of
AI evolution. The first was driven
by machine learning, the second
by deep learning and the third by
foundation models that will enable
us to further fine-tune the necessities
of specialized domains and tasks.
The future of the technology industry
continues to be shaped by the
following trends:
• Accelerated demand for IT services
with digital going mainstream and
growth pockets emerging in areas
like cloud, AI, cybersecurity, IoT and
immersive technologies
• Focus on cost takeouts to deal with
the uncertain global environment
• Greater leverage of general-purpose
AI technology
• Increase in enterprise spending on
hybrid, multi-cloud led transformation
38
• Proliferation of tech natives and large
enterprises responding by reinventing
digital business models
• Intense competition for talent as
enterprises embrace new ways
of working amid scarcity of niche
digital skills
• Focus on Environmental, Social and
Governance (ESG) as a strategic theme
for all enterprise stakeholders
Intense competition marks the
delivery of traditional services in
a rapidly changing marketplace,
especially with the emergence of
new players in niche technology
areas. Infosys’ industry expertise, end
to-end service capability and digital
solutions, ability to scale, established
platforms, superior quality and
process execution, distributed agile
global delivery model, experienced
management team, talented
professionals and track record are
often cited as clear differentiators.
Responsibility and
responsiveness
As an early proponent of responsible
business, Infosys has incorporated
ESG goals into the entirety of its
operations. Infosys ESG Vision 2030
articulates the Company’s ambitions
to balance success as a business with
unwavering focus on exemplary
governance and responsiveness to
the needs of stakeholders. Primary
stakeholders include investors,
customers, employees, suppliers,
communities, government and
regulatory bodies. The expectations
of the Company’s investors include
sustainable business performance
and good returns; customers want
long-term business value and
innovative solutions; employees are
keen for opportunities to learn and
Our solutions are classified as digital and core.
Digital
Experience
Insight
Innovate
Core
Accelerate
Assure
Infosys Cobalt is a set of services, solutions, and platforms for enterprises to accelerate
their cloud journey.
Infosys Topaz is an AI-first offering to accelerate business value for global enterprises
using generative AI.
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
Digital accelerators
Infosys Metaverse Foundry eases and fast-tracks enterprises’ exploration of the
metaverse, including virtual and augmented environments, for their customers,
workplace, products and operations.
Center for Emerging
Technology Solutions
Infosys Center for Emerging Technology Solutions focuses on incubation of NextGen
services and offerings by identifying and building technology capabilities to
accelerate innovation.
Key products and platforms
39
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Approaching value creation
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 journey to
the digital future requires not just an
understanding of new technologies
and new ways of working, but a deep
appreciation of existing technology
landscapes, business processes
and practices. Our strategy is to be
a navigator for our clients as they
ideate, plan and execute on their
journey to a digital future.
In 2018, we embraced a four-pronged
strategy to strengthen our relevance
with clients and drive accelerated
value creation:
1. Scale agile digital
2. Energize the core
3. Reskill our people
4. Expand localization
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 few years, we have
executed on this strategy and
generated significant outcomes.
40
Scale agile digital
Our revenue from digital technology
related services and solutions has
more than doubled in the last
three years, and now comprises
62.2% of our total revenue. We are
rated as a “leader” in 56 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.
During the fiscal, we completed the
acquisition of oddity to augment
our human experience capabilities
in Europe. Through our academia
partnerships with Purdue, Trinity,
RISD and eCornell, we have trained
over 7,500 employees in niche
digital skills.
Our Insight and data analytics
services and solutions were further
strengthened with our Infosys
Applied AI solutions, coupled with
the Infosys Data Workbench. Our AI
platform, Infosys Applied AI, helps
enterprises adopt a comprehensive
approach to scaling enterprise-grade
AI for their businesses. Our Core AI
Engineering will focus on identifying,
fine tuning and deploying models,
API’s and platforms in a responsible
manner for building AI products.
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.
Infosys Equinox, our flagship digital
commerce platform, 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,
AI infrastructure players like Nvidia
and niche AI players, powered by
our best-in-class solutions, IPs and
frameworks. We have automated
over 50,000 processes for our clients
and have over 12,000 ready use cases
across industries.
Our Assure-related services, in
software testing and cybersecurity,
continued to grow with investments
in Cyber Gaze, our cybersecurity
dashboard and suite of applications.
Energize the core
Reskill our people
Expand localization
With the objective of creating
differentiated talent pools and
ecosystems in our markets, we
made significant investments in
expanding our local workforce in
the United States, UK, Europe, Japan,
China, Canada and Australia. We
established innovation hubs, near-
shore centers and digital design
studios across geographies. Further,
we expanded our university and
community college partnerships in
all these regions to aid internships,
recruitment, training and joint
research. In fiscal 2023, we recruited
over 10,169 employees locally in our
markets, of which 2,216 were fresh
graduates.
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 Live Enterprise Application
Management Platform (LEAP),
our platform for optimizing large
scale application maintenance and
reengineering.
In fiscal 2023, we won a total
contract value of over US$ 9.8
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.
Continuous learning and reskilling
has always been integral to our
operating model. We operate our
reskilling program with the twin
objectives of increasing fulfillment
of demand for digital skills in client
projects and for enriching the
expertise of our global workforce
in next generation technologies
and methodologies. We invested
in, and scaled, our digital reskilling
program globally. Our programs now
also encompass latest courses on
generative AI landscape.
Lex, our in-house developed,
anytime-anywhere-learning platform,
offers over 14,800 courses curated
for easy consumption on mobile
devices with advanced telemetry,
gamification and certification
features. Over 3,25,000 of our
employees use Lex and are spending
approximately 3.3 million training
days compared to 2.3 million in the
last fiscal.
Our platforms are also being
enhanced with generative AI aspects.
Looking ahead, and to continue staying relevant to the emerging needs of our clients, we prioritize:
• Scaling our cloud capabilities,
especially around cloud advisory,
data on cloud, cloud security, SaaS,
PaaS, IaaS and private cloud;
• Expanding capabilities in key
digital technology areas such
as AI, product engineering,
cybersecurity and human
experience;
• Strengthening our employee value
proposition for the newer contexts
of work and workplace;
• Running our operations in a
cost-effective and agile manner,
including increasing the levels of
automation in our service delivery;
• Delivering on our ESG
commitments, while at the same
time enabling our clients to realize
their sustainability goals.
41
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Approaching value creation
Value creation model
Inputs
Process and Strategy
Financial Capital
`75,407 cr Net assets
`31,286 cr Consolidated cash and investments
Intellectual Capital
1,90,000 Employees trained in digital skills
40 Industry-leading products, solutions and platforms
248 Startups in our innovation ecosystem
Human Capital
3,43,234 Total no. of employees
16.31 Annual average training days per
employee
`1,585 cr Investments in employee well-being
Natural and Manufactured Capital
28.9 mn sq. ft. Highest rated green buildings
`1,510 cr Capex spend on tech infrastructure
32 Climate change solutions
Social and Relationship Capital
`517 cr Global CSR spends
1,872 Total no. of active clients
28 No. of nearshore / tier-2 locations
13 No. of carbon offset projects
Client offerings
Digital
Products
Platforms
Core solutions
Strategy
Scale agile digital
Environment
E
x
p
a
n
d lo
c
aliz
a
tio
n
Social
Governance
E
n
e
r
giz
e t
h
e c
o
r
e
Our people and
the strong culture
of innovation
Reskill our people
Go-to-market business units
Hi-Tech
Manufacturing
Life Sciences and Healthcare
Financial Services and Insurance
Energy, Utilities, Resources and Services
Communications, Telecom OEM and Media
Retail, Consumer Packaged Goods and Logistics
Public Services
Others including segments of businesses in India, Japan and China
Outputs
Financial Capital
15.4% Constant currency revenue growth
9.7% Earnings per share growth
31.2% Return on equity
Intellectual Capital
62.2% Digital revenues
25.6% Constant currency digital revenue growth
56 Digital leader ratings
290 Artifacts published by the Infosys Knowledge Institute (IKI)
27 Reports published by IKI
735 Patents in the portfolio
Human Capital
~50,000 Fresh graduates hired globally
1,35,355 Women in the workforce (39.4%)
Natural and Manufactured Capital
4th Consecutive year of being carbon neutral across scope 1,2,3
emissions
49.92% Reduction in scope 1 and 2 emissions over the
BAU scenario
>30% Client engagements include climate change solutions
Social and Relationship Capital
8.5 mn People enabled in digital skills
458 New client accounts
64,275 Employees in nearshore / tier-2 locations
2,40,000+ Rural families continue to benefit from our carbon
offset projects
Outcomes
Stakeholders
• Profitable growth
• Sustained / long-term cash flow
• Diversified portfolio of solutions
across industry segments
• Innovation partner to clients
• Partner of choice for social and
environmental solutions for the
community
• Top employer in 22 countries across
Europe, Middle East, Asia Pacific, and
North America.
• Best-in-class employee experience
and learning
• Safe and inclusive workplaces
• Strong advocates of environmental
stewardship extending beyond our
boundaries
• Productive, safe and healthy
workplaces for employees
• Positive impact on the communities
in which we operate
• Trusted partner of choice for all
stakeholder groups
Investors
Clients
Employees
Suppliers
Communities
Government /
Regulators
42
43
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23
Delivering value
Financial Capital
We obtain our Financial Capital through the funds generated from our business operations and
financing activities. 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. Our focus is on ensuring a sustainable and profitable financial
position. Our stakeholders expect us to deliver long-term growth riding on a solid strategy and
prudent business decisions. Our shareholders are looking for good returns on their investment and
dividends, along with a steady buyback plan.
86% of free cash flow for fiscal 2020 to fiscal 2023 returned to shareholders in
line with the Capital Allocation Policy.
Market capitalization
Revenue growth
Basic earnings per share
In ` crore
5,82,880
8,02,162
5,92,394
In `
45.61
52.52
57.63
In %
10.7
21.1
20.7
Performance highlights
2021
2022
2023
2021
2022
2023
2021
2022
2023
20.7%
Revenue growth
21.0%
Operating margin
31.2%
Return on equity (ROE)
`31,695 cr
Robust working capital
15.4%
CC Revenue growth
9.7%
Dividend per share growth
9.7%
EPS growth
AAA rating
By CRISIL
Material topics
• Scale agile digital &
Energize the core
• Shareholders returns
• High returns on equity
UN SDG mapping
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
44
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.
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.
Details of these investments are
available in the Financial Statements
in this Integrated Annual Report.
Free cash flows
In ` crore
22,020
22,803
20,443
Return on equity
Dividend per share
In %
27.4
29.1
31.2
In `
27.0
31.0
34.0
2021
2022
2023
2021
2022
2023
2021
2022
2023
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.
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 of our Capital Allocation
Policy are available at
https://www.infosys.com/investors/
corporate-governance/documents/
capital-allocation-policy.pdf.
Shareholder value creation
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.
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, the
Annual General Meeting, and regular
one-to-one and group interactions.
45
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Delivering value
Human Capital
Nurturing talent for the future is essential for our continued success. We have long established
paths for employee upskilling and reskilling, and our efforts have been well-rewarded, providing
value to our people and us. Our people expect the Company to provide them ample opportunities
to learn and grow in their careers while enjoying work in safe workplaces, free of all discrimination
and bias. Employee well-being and interaction with a large, diverse and multicultural workforce are
added advantages.
Our 5C model for Engagement – Connect, Collaborate, Celebrate, Care, and
Culture – is designed to strengthen and reinforce our culture so that it is
experienced uniformly and positively by employees, remote or in office.
Employee Value
Proposition
We never cease to reinforce our
Employee Value Proposition (EVP).
Our EVP continues to build on
the three pillars of
Performance highlights
3,43,234
Employees globally
160+
1,357
Employees have voluntarily
disclosed their disability
82%
Nationalities in the workforce
Employee satisfaction score
1,90,000
~50,000
Employees trained in digital skills
Fresh graduates hired globally
Material topics
• Employee Value
Proposition
• Employee health
and wellness
• Diversity, Equity
and Inclusion
• Energizing local
communities
UN SDG mapping
Employee satisfaction
73%
75%
82%
2021
2022
2023
Employee health and
wellness
There is a stronger focus on individual
and collective well-being in the
hybrid work model. Employees who
are comfortable and satisfied with
work add to the productivity and
success of the organization, while also
leading happier and fulfilling lives.
Infosys’ Health Assessment & Lifestyle
Enrichment (HALE) program is a
non-monetary employee benefit
and has been recognized as the best
internal brand with great recall and
participation.
Our employee well-being rates
reached an all-time high of 91%
among employees across locations.
46
Diversity, Equity and
Inclusion
As part of our ESG Vision 2030,
we aim to achieve 45% female
representation in our workforce by
2030. In fiscal 2023, we had 1,35,355
women, making 39.4% of the total
workforce.
% of women employees
38.6
39.6
39.4
2020-21
2021-22
2022-23
Our career framework, articulated as
Career Gambit, is a simple, intuitive
framework that is focused on three
important actions – Get, Set, Go.
Get: Access to world-class learning
and personalized learning paths with
digital readiness through Lex, our
online learning platform, and Digital
Quotient, a comprehensive score that
helps employees keep track of their
digital capabilities.
Set: Employees are encouraged to set
themselves up to win, acquiring Skill
Tags and setting sights on specialized
careers through tools such as Digital
Specialist. Once they complete
the required courses and gain six
months of experience in that skill set /
technology, they qualify for a Skill Tag.
Go: Multiple pathways into exciting
technology spaces through
Bridge programs, Accelerate and
Marketplace enhance employees’
mobility in this fast-paced technology
world. These intelligent platforms
match the right opportunity to the
right individual at the right time for
employees and business alike.
These efforts have resulted in faster
growth, broader career options,
increased talent mobility and sharper
compensation differentiation.
Inspiring you
to build what’s next
Inspiring our people with
meaningful work and passionate
teams, enabling them to find their
purpose and make an impact
Making sure your
career never stands still
Enabling our people with learning
and progress in their careers while
shaping our collective future
Navigating further,
together
Ensuring our people
experience Infosys in a
creative, dynamic, rewarding
and inclusive environment
Our Talent Pulse report articulates
the Infosys advantage. Read more
at https://www.infosys.com/
careers/documents/talent-pulse-
report-2023.pdf.
Infosys internship program
InStep, Infosys’ flagship global
internship program, has 200+ partner
institutions in over 50 countries, more
than 3,000 alumni members and
interns from over 50 nationalities.
InStep has been ranked as World’s #1
Internship Program, five times in a
row by Vault Firsthand, a prestigious
career intelligence platform. InStep
has been instrumental in building
strong academic partnerships
for Infosys with premier global
institutions, generating numerous
patents and publications, along
with contributing to the overall
localization efforts.
Localization
To create a more diverse and inclusive
talent pool in our markets, we are
committed to creating a significant
number of local jobs in our key
markets in North America, Europe,
and APAC. We believe that this will
help us to better serve our customers
and create an environment where
everyone can thrive. We established
innovation hubs, nearshore centers
and digital design studios across
geographies. In fiscal 2023, we
recruited over 10,169 employees
locally in our markets.
Our hybrid work model is about our
people and their comfort. It offers
the flexibility of working from home,
working from office or a combination
of the two. The model operates
according to different employee
contexts: those in the same city as
their office, those in other locations,
and other situations. As part of this
strategy, this year, we set up offices
in Hubballi, Indore, Navi Mumbai,
Nagpur and Coimbatore, in India.
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Intellectual Capital
Our Intellectual Capital is driven by agility, flexibility, and innovation. We are committed to working
with experts, partners, academia, and other stakeholders to develop new products and services
that meet the needs of our customers and communities. We are also focused on strengthening our
Tech for Good solutions and providing an environment for startups to be incubated and innovation
to be scaled.
With iCETS, the Living Labs, and the Infosys Innovation Network, we
have a broad portfolio of solutions across industry segments, while the
Infosys Prize and Aarohan Social Innovation Awards provide a platform for
innovators and social entrepreneurs, respectively.
Performance highlights
62.2%
Of our total revenue comes from digital
technology services and solutions
1,000+
Infosys Knowledge Institute assets
100+
Client living labs
735
“Well known”
Trademark for Infosys in India
Industry leader
Patents owned by Infosys
Rating for iCETS platforms by analysts
Material topics
•
Innovation and
Intellectual Property
• Products, platforms
and solutions
• ESG solutions
UN SDG mapping
Center for Emerging
Technology Solutions
Infosys Center for
Emerging Technology
Solutions (iCETS)
iCETS is the incubation unit at Infosys
that offers a variety of emerging
technology services to clients.
These services include building
next-generation platforms and
a variety of new-age innovation
services including incubation of
emerging technology capabilities
(like generative AI, AR/VR/metaverse,
quantum computing, cloud,
cybersecurity and data management)
under various Centers of Excellence
(CoE). Led by the CoE, iCETS has
been curating technology and
trends across business verticals and
contributing to thought leadership.
48
iCETS-led technology platforms like
LEAP, Cortex, Cyber Next, Quality
Assurance and Privacy Next are
contributing to differentiating Infosys
services. Infosys’ vertical platforms
like Energy-as-a-Service are opening
up new opportunities for Infosys and
client joint platform-led offerings.
Living Labs
Living labs
We collaborate with our clients to
enable rapid prototyping, incubating
and piloting of innovative solutions,
both through client and Infosys
living labs.
With over 100+ client living labs,
Infosys has helped its clients explore
and develop art-of-the-possible
emerging technology solutions.
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 leveraging 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 help our clients foresee
disruptions with Listening-Post-as-a-
Service (LPaaS).
Infosys Innovation
Network (IIN)
IIN is a well-orchestrated partnership
among select startups, universities,
hyperscalers and Infosys to incubate
and bring the best of emerging
tech innovations from across the
globe. Today, IIN boasts of 250
startups and these have had over
400 client impressions. Infosys has
also established partnerships with
key client corporate venture capital
firms to bring their portfolio startups
onto the 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.
Infosys Knowledge
Institute (IKI)
IKI harnesses the intellectual capital
of Infosys’ subject matter experts to
produce unique and fresh content
and insights on the business
impact that technology can drive
for prospects and clients. IKI also
develops its proprietary data and
insights through multiple large-scale
surveys and quantitative analysis.
These are published through its
flagship Radar maturity assessments,
the annual Tech Navigator report
on future trends and the ongoing
TechCompass tech trends series. IKI
has collaborated with 500 clients
and created over 1,000 assets since
inception. For more information, visit
https://infosys.com/iki.
Product innovation
WongDoody
An Infosys company
Our digital platforms subsidiary,
EdgeVerve, helps our customers
create a connected enterprise
where humanity, AI, and automation
work together. EdgeVerve’s three
digital platforms, AssistEdge for
hyper automation, XtractEdge for
intelligent document processing, and
TradeEdge for autonomous supply
chains, create connected enterprises
and orchestrate the confluence
of AI and automation to amplify
human potential, deliver cognitive
operations, and create a value
network of information, partners,
and resources for transformation and
exponential growth.
Read more at
https://www.edgeverve.com/.
Intellectual Property (IP),
patents and trademarks
Infosys actively innovates and
develops platforms, products and
tools, that constitute its collection
of IP assets. These assets, which are
available on the Infosys Marketplace,
are used to differentiate ourselves
in the market or as productivity-
enhancing tools. We have 735
patents in the portfolio.
Over 840 trademarks registered
(or pending) across 51 countries
underscore the strength of our brand.
• “Well Known”: Infosys is regarded
by Indian authorities as being a
“Well Known” trademark. This gives
us legal rights across sectors.
• Most valuable brand: Infosys is
recognized as one of the top 3
most valuable IT services brands
globally by Brand Finance. Infosys
is now among the top 150 most
valuable brands in the world.
WongDoody, the design/marketing/
experience arm of Infosys, is driving
innovation in the CMO/CDO/CXO
space. Along with global studios,
WongDoody has developed new
practices and products for next gen
problems. These include StudioNext,
a flexible inside marketing innovation
acceleration and augmentation
practice; sustainability by design
methods including EcoLight
audits so enterprises can build
planet-friendly digital products; an
emerging experiences platform that
brings the digital authenticity and
engagement of video games to the
automotive, manufacturing and retail
verticals; and the Sounding Board,
an agile insights solution designed
to move faster and deeper to identify
competitive advantage.
Infosys Marketplace
Infosys Marketplace is a one-stop
shop to see, try, and adopt innovative
and next-generation solutions from
Infosys and partners. The platform
provides hundreds of curated
solutions across a wide range of
technologies and industry verticals to
accelerate the digital transformation
initiatives of global enterprises.
Read more about Infosys Marketplace
at https://www.infosys.com/navigate-
your-next/live-enterprise-suite/
offerings/marketplace.html.
ESG solutions
Infosys continues to strengthen
its position in delivering practical,
impactful, and holistic ESG solutions
to its clients and community
stakeholders. Over 30% of our
client engagements include climate
change solutions.
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Natural Capital
We have been at the forefront of climate action, starting well before international treaties and
global commitments came into place. Our environmental performance over the past decade
is a testimony to the fact that economic progress can go hand in hand with environmental
sustainability. Infosys became carbon-neutral in 2020 – 30 years ahead of the timeline set by
the Paris Agreement. Meeting stakeholder expectations, we are pioneers in our climate action
commitments, and water and waste management.
Today, we incorporate environmental considerations into everything that
we do, as we power the journey towards a sustainable world for all.
Material topics
• Carbon neutrality
• Renewable energy
• Offsets for community
development
• Advocacy for climate
action
• Water stewardship
• Zero waste to landfill
UN SDG mapping
Performance highlights
57.9%
2,40,000+
Of electricity for our India operations
comes from renewable sources
Rural families benefited through
carbon offsets program
Carbon neutral for
4 years in a row
100%
Wastewater recycled
within our campuses
28.9 mn sq.ft.
7 years
Of highest-level green certified space
Of CDP climate leadership
Infosys’ climate commitments
• As a part of our ESG Vision 2030, we have committed to maintaining
carbon neutrality across Scope 1, 2 and 3 emissions, every year
• Signatory to the Climate Pledge, with the ultimate goal of a
Net Zero planet by 2040
• Our goals are aligned to Science Based Targets (SBTi)
Climate action strategy
We are working diligently towards
this goal and built our carbon neutral
program on three pillars –
Energy efficiency
To reduce emissions
Renewable energy
To avoid emissions
Carbon offsets
To offset emissions
Energy efficiency
Infosys has been a pioneer in
building sustainable ecosystems
in its campuses, keeping in mind
the expanding workforce. From
creating green campuses to using
innovative technologies like radiant
cooling, Infosys has deployed one
of the largest enterprise energy
conservation programs globally and
achieved good reduction in resource
intensity over the past 15 years.
In the process, we have also set
new benchmarks in green building
certification. Today, Infosys has
about 28.9 million sq.ft. of buildings
with highest level of green building
certification.
Renewable energy
Transition to clean energy is an
important step towards emissions
avoidance. Infosys has adopted
renewable energy across its
campuses with solar PV panels
on rooftops and ground mount
installations. Today, Infosys has a total
installed capacity of 60 MW of solar
PV plants across India, supplying
renewable power to its campuses.
Infosys also procures green power
through third-party power purchase
agreements. We have also procured
green power through the green tariff
mechanism of DISCOMs in a few
locations, as an option, to augment
our clean energy mix.
Carbon offsets
Empowering rural India
Unavoidable emissions are addressed
through carbon offset projects to
maintain carbon neutrality. Infosys
continues to identify projects that
have a high social impact – including
improving health and livelihoods
of rural families, creating rural jobs,
thereby generating carbon offsets
for the Company. Our unique offset
program is certified to the highest
level (Gold Standard) in terms of
social impact, authenticity, and
transparency.
This year, we added new cookstove
projects in Rajasthan, and biogas
projects in Maharashtra and
Karnataka. Our carbon offsets
program is spread across five states,
and is expected to benefit more than
2,40,000 rural families, and create
over 2,800 rural jobs.
Advocacy for climate action
Infosys campus as case study for
international delegates
With India assuming the G20
presidency in December 2022,
the first G20 Energy Transition
Working Group (ETWG) was held in
Bengaluru in February 2023. Being
a frontrunner in environmental
sustainability and net zero approach
to buildings, Infosys was selected
to host the G20 delegates for a site
visit to the Infosys Crescent campus
in Bengaluru. The visit showcased
the focused approach to net zero
design and innovative technologies
implemented in the campus to
achieve energy conservation.
Water stewardship
As a signatory to the CEO Water
Mandate, we commit to enhancing
our operational water conservation
procedures and expanding our
community outreach. Infosys’
strategy to reduce water demand,
recycle 100% wastewater and
focus on rainwater harvesting have
resulted in significant reduction in
our water intensity.
An important element of our water
management system is rainwater
harvesting (RWH). We have
established around 400 deep injection
wells across India campuses, providing
a combined recharge capacity of
around 20 million liters per day. We
have also built 39 lakes across our
campuses, holding 426 million liters of
rainwater storage capacity.
We have implemented state-of-the-
art membrane bio reactor (MBR)
sewage treatment plants across many
of our India campuses which are
capable of tertiary treatment. Infosys
campuses continue to treat 100%
of wastewater and use it within the
campuses for flushing, landscaping
and cooling tower makeup water
requirement.
Lake rejuvenation
Infosys has envisioned to take
up a water stewardship role by
implementing lake rejuvenation
projects and increasing water holding
capacity of lakes by 10 billion liters in
the next five years. Infosys plans to
work with local partners to improve
water availability in the communities
in which Infosys operates.
Waste management
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.
While there is a constant effort to
reduce waste generated through the
adoption of sustainable practices in
operations, the biggest differentiator
is the in-campus treatment of all
the organic waste (comprising food
waste, garden waste and STP sludge),
following a true net-zero approach.
Organic waste contributes to an
average of 75% of the total waste
generated at Infosys and effective
treatment and reuse has created a
circular economy for this stream of
waste within our campuses. Infosys’
India centers are heading towards the
2030 target of zero waste to landfills
through the adoption of TRUE
Certification.
Biodiversity
A saga of greening
A significant and proven way to
tackle climate change is to increase
green cover by planting trees. Infosys
Mangaluru offers a striking example
of this, where barren land has been
transformed into a lush green
campus with thriving biodiversity
of flora and fauna. The story of
this transformation, along with
documentation of the tree species in
the campus, was recently published
as a book. With this, we hope to
inspire corporates, developers,
administrators and communities to
adopt similar projects at scale. The
book will also serve as a repository of
the endemic species in the Western
Ghats for science aficionados.
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Delivering value
Manufactured Capital
Our Manufactured Capital includes our energy-efficient offices, data centers, innovation hubs,
digital studios, and our technology infrastructure across the globe. Our infrastructure is modeled
taking into consideration stakeholder expectations of our commitments towards climate change
mitigation, judicious use of natural resources and preserving our environment.
With the highest-rated green buildings on our campuses and investments
in collaborative tech infrastructure, we offer productive, safe, healthy and
hybrid workplaces for employees, clients, partners and contractors.
Performance highlights
75 kWh/sq.m./p.a.
Building EPI
1.59
Weighted average PUE of data centres
68%
Of internal IT application workload
migrated to public cloud
High-performance
green buildings
The lush green campuses of
Infosys, equipped with world-class
infrastructure, provides a unique
experience for our employees.
With about 28.9 million sq.ft.
of the highest level of green
building certification, Infosys’
leadership in high-performance
buildings remains unrivaled. Our
efforts include developing super-
efficient new buildings, retrofitting
existing buildings, a sharp focus
on innovation and continuous
monitoring to achieve the highest
levels of efficiency. Infosys’ building
standards have set new global
benchmarks.
52
Radiflux
Radiant cooling solution patented
in Europe and India
35 mn sq.ft.
Of office space monitored
through Infosys command center
Material topics
• Green buildings / infra /
data center efficiency
• Workplace
transformation
• Green IT
UN SDG mapping
Radiant cooling
Radiflux cooling solution
Infosys has been a pioneer in radiant
cooling technology. Our building
in Hyderabad was the first radiant
cooled commercial building in India.
The building provided a global
case study comparing two cooling
technologies in a single building with
identical conditions. Data over the
past 12 years has shown that radiant
cooling is about 35% more efficient
than conventional air conditioning.
Today, Infosys has implemented
radiant cooling in over 5 million sq.ft.
of office space across its buildings
in India.
While Infosys was keen to implement
radiant cooling on a large scale for all
its new buildings, there were a few
challenges that had to be addressed
including, the non-availability of skills
and the lack of commercially viable
options for the Indian market. The
Infosys team therefore developed a
radiant cooling solution, with high
quality and high energy efficiency,
that is affordable and easy to install.
The radiant cooling solution –
Radiflux – has twice the cooling
capacity compared with other radiant
cooling solutions available in the
market today. Radiflux is a designed,
developed and made-in-India
solution for the world, with patents in
Europe and India.
Central command center
The Infosys central command center
in Bengaluru manages our smart
buildings, energy management
systems, solar PV plants, data center
efficiency, battery management
systems, energy consumption for
water and wastewater treatment
plants across Infosys campuses
from one location. The command
center helps maintain operational
excellence, provides design
insights for new infrastructure and
ensures resilience through remote
management of buildings and
campus Infra.
Workplace transformation
The workplace has undergone
a significant change due to the
pandemic, and the need to create
workplaces aligning to the new
normal working scenario is now more
evident than ever. Infosys embarked
on workplace transformation to
enable its employees to adapt
and excel in the new normal. The
principles of Infosys workplace
strategy are focused on productivity,
social connect, tech enabling, health
and wellness, sustainability and
design for all. The new workplace
not only provides employees
with a refreshing experience and
collaborative environment, but also
enables high productivity, fosters
innovation and helps to create and
sustain a flourishing culture.
Green IT
InfosysIT has embedded sustainable
practices across the life cycles of
service design, operations, and
disposal of IT assets.
Data center efficiency
InfosysIT has taken up data center
modernization as a strategic initiative.
Density-optimized hyperscale
platforms, which provide cloud-scale
agility and enable efficient resource
use, have been deployed to deliver
high-density server virtualization and
consolidation across the enterprise.
This initiative has delivered
significant power savings. In the
next phase, further consolidation of
data center and server rooms across
development centers is planned,
which is expected to deliver 1 MW of
electrical load reduction.
InfosysIT has made focused
investments in Data Center
Infrastructure Management (DCIM)
tools to get accurate visibility across
the entire data center IT and Facility
stack, which is necessary to do
everything else.
Infrastructure as code
Infrastructure as code is a
transformational initiative towards
enabling continuous deployment,
continuous integration, and touch-
less 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.
AIOps-powered digital operations
InfosysIT has deployed AIOps
platform with a wide range of
capabilities – like algorithmic noise
reduction, anomaly detection, root
cause analysis, and context-based
notification.
InfosysIT digital operations provides
unified observability cutting across
infrastructure and application
stack, in addition to capacity usage
and cost analysis. It also offers the
ability to ingest large volumes of
data originating from all areas of
the infrastructure and application,
and analyze it using AI, ML and
DL algorithms to identify areas of
remediation and optimization.
PolyCloud and OneStop
We have introduced the OneStop
unified provisioning platform
for endpoints, clouds, software,
and tools. 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.
The PolyCloud digital backplane
provides an abstraction of managed
private clouds and public cloud
services, empowering full stack
developers.
Public cloud adoption
Currently, more than 68% of the
internal IT application workload has
been migrated to public cloud. All
our employees have been enabled
for cloud-based collaboration for
messaging, presence, video, and
other requirements. The shift to
cloud helped in optimizing the on-
premises data center footprint. This
strategic shift also helped to scale up
the infra on demand and provision
IT services seamlessly for all the new
hires inducted to the organization.
The Internet-first approach helped
to provide seamless service access in
the current hybrid work environment.
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Social and Relationship Capital
Our Social and Relationship Capital guides us to bring the interests of our stakeholders to the fore.
As enterprises focus on reshaping their businesses in the digital era, we are helping our clients drive
transformation. Our social ambition focuses on serving the development of people by shaping
a future with meaningful opportunities for all. We deliver on expectations of nurturing social
innovations and enabling employability through skill training of communities.
Our global CSR efforts address challenges across education, healthcare,
women empowerment, science and research, environmental sustainability
and more.
Performance highlights
86
Scientists honored with
the Infosys Prize since 2008
91%
8.5 mn
Learners enabled in digital skills
`517 cr
Local hiring across geographies
Global CSR spends
114 mn +
Lives empowered via
Tech for Good programs
3.8 mn
Beneficiaries of
CSR projects in India
Material topics
• Client value
•
Inclusive development
• Digital skilling
UN SDG mapping
Creating value for our
customers
Digital transformation
We help our customers navigate
their digital transformation journeys
through our suite of services and
solutions.
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
54
on our operating models to help
navigate their next.
Details of our key customer services
and solutions are available at
https://www.infosys.com/industries/.
Digital operating models
We use our native digital innovation
expertise to partner with our
clients to develop future-ready
solutions. Further, the Infosys Living
Labs enable clients to experience
emerging technologies to inspire
innovation and incubate new
possibilities.
Read more at https://www.infosys.
com/navigate-your-next/digital-
operating-models.html.
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 relationship management,
client-centric approach, account
management, base delivery and
quality of deliverables.
Community
Springboard
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.
Infosys Springboard is Infosys’
flagship digital learning platform that
empowers people with skills to be
successful in the 21st century. About
5.3 million learners across India have
registered on Infosys Springboard.
Tech for Good
Infosys is committed to using digital,
cloud and open-source technologies
to drive societal impact in our
communities through partnerships
that will enable our stakeholders to
harness the power of technology
everyday.
Infosys Foundation
Infosys Foundation’s direct health
interventions have focused on
bringing critical services to some of
India’s poorest and strengthening the
institutions that provide healthcare.
We helped All India Institute of
Medical Sciences (AIIMS), New
Delhi, procure best-in-class medical
equipment for the Mother and Child
(MCH) Block. The Tech For Good
vision enabled us to procure a case
management system for AIIMS,
which includes a sophisticated 3D
rendering of imaging data for better
visualization and forms the backbone
of all text and medical imaging data
transmission and archiving. With
a focus on education and women
empowerment, the Foundation has
tied up with Avanti Fellows, Yuva
Unstoppable, eVidyaloka, Unnati, and
Nirmaan for various efforts.
The Aarohan Social Innovation
Awards launched by Infosys
Foundation seeks to encourage and
reward individuals, teams and NGOs
for social solutions that have the
potential to bring about a significant
difference to the underprivileged
across India, at scale. In 2023, the
Infosys Foundation has committed
up to `50 lakh per winner, with a
total award purse of `2 crore. Read
more at https://www.infosys.com/
infosys-foundation/aarohan-social-
innovation-awards.html.
Read the Infosys Foundation 2023
report at https://www.infosys.com/
infosys-foundation/about/reports.html.
Infosys Foundation USA
In fiscal 2023, Infosys Foundation
USA remained committed to
investing in programs that help
bridge the digital skills gap. This
year alone, the Foundation brought
computer science and maker-
focused educational programming
to 1.3 million students and 44,000
educators in the US.
The Foundation achieved
significant impact through targeted
partnerships and equity-focused
initiatives that deliver professional
development for educators; provide
afterschool coding programs
to children in marginalized
communities; spark imaginations in
makerspaces, museums, and libraries
and provide signature awards,
namely the CS Teaching Excellence
Awards and the Infy Makers Awards,
that spotlight exceptional talent and
inclusivity.
Read more at https://www.infosys.org/
infosys-foundation-usa/impact.html.
Infosys Science Foundation
The Infosys Science Foundation
awards the Infosys Prize that
endeavors to elevate the prestige
of science and research in India.
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
Sciences and Social Sciences. Each
Prize carries a gold medal, a citation
and a purse of US$100,000. The work
of the winners of the Infosys Prize
2022 tackles real world problems, like
making healthcare and diagnostics
more accessible, designing social
policy to be inclusive, studying
neuroscience for better mental health
and presenting how our constitution
protects democratic polity.
Read more at https://www.
infosysprize.org/about-isf.html.
Suppliers
Infosys believes in and is committed
to partnering with the highest quality
diverse suppliers to ensure that
we deliver 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.
This year, we launched a dedicated
ESG learning portal for our suppliers
on Infosys Springboard. The portal
contains material on ESG learnings
and best practices, and provides
learners an opportunity to discuss,
ideate and engage on ESG topics.
55
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 STATUTORY
REPORTS
56
57
Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 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, 2023. The consolidated performance of the Company and its
subsidiaries has been referred to wherever required.
1. Results of our operations and state of affairs
(In ` crore, except per equity share data)
Particulars
Revenue from operations
Other income, net
Total income
Expenses
Cost of sales
Selling and marketing expenses
General and administration expenses
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:
Standalone
Consolidated
For the year ended
March 31,
2023
2022
1,24,014
1,03,940
3,859
3,224
YoY
growth
(%)
19.3
19.7
For the year ended
March 31,
2023
2022
1,46,767
1,21,641
2,701
2,295
1,27,873
1,07,164
19.3
1,49,468
1,23,936
85,762
69,629
23.2
1,02,353
81,998
5,018
5,293
96,073
31,800
157
4,125
4,787
78,541
28,623
128
31,643
28,495
25.5
8,375
27.4
7,260
23,268
21,235
18.8
(268)
20.4
(48)
21.6
10.6
6,249
7,260
22.3
1,15,862
33,606
284
5,156
6,472
93,626
30,310
200
33,322
30,110
22.7
9,214
24.8
7,964
24,108
22,146
16.4
514
18.2
182
11.1
22.7
11.0
15.4
9.6
YoY
growth
(%)
20.7
17.7
20.6
24.8
21.2
12.2
23.7
10.9
42.0
10.7
15.7
8.9
23,000
21,187
24,598
22,293
23,268
21,235
–
–
24,095
22,110
13
36
55.48
55.42
50.27
50.21
10.4
10.4
57.63
57.54
52.52
52.41
9.7
9.8
The above figures are extracted from the audited standalone and consolidated financial statements of the Company as per the Indian Accounting Standards
(Ind AS).
Equity shares are at par value of `5 per share.
58
Infosys Integrated Annual Report 2022-23
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:
Impact on adoption of amendment to Ind AS 37, Provisions,
Contingent Liabilities and Contingent Assets
Dividends
Buyback of equity shares (including tax on buyback)
Transaction cost relating to buyback (net of tax)
Transfer to legal reserve
Amount transferred to capital redemption reserve upon buyback
Transfer to Special Economic Zone Re-investment Reserve
Changes in controlling stake of the subsidiaries
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,
2023
24,640
11,931
3,561
214
33,549
1,01,337
3,553
2,597
55,449
23,268
1,397
2022
27,461
11,795
3,311
243
31,601
99,387
3,228
1,877
57,518
21,235
1,012
2023
31,695
13,634
6,882
8,997
25,422
1,25,816
7,057
3,778
61,313
24,095
1,464
2022
33,582
13,491
4,823
7,902
24,484
1,17,885
4,602
3,944
62,643
22,110
1,100
(9)
0
(19)
0
(13,675)
(11,096)
(12,700)
(8,822)
(5)
–
(21)
(3,125)
–
52,183
2,074
13,752
(264)
–
67,745
1,01,337
–
–
–
(2,794)
–
55,449
2,103
11,750
4
–
69,306
99,387
(13,632)
(11,096)
(5)
(3)
(21)
(3,139)
–
58,957
2,069
12,354
2,027
388
75,795
1,25,816
(12,655)
(8,822)
–
(10)
–
(3,054)
1
61,313
2,098
10,415
1,524
386
75,736
1,17,885
59
Infosys Integrated Annual Report 2022-23
Board’s report
Based on consolidated financial statements
Revenue distribution by geographical segments (in %)
Revenue distribution by offerings (in %)
61.7 61.8
57.0 62.2
43.0 37.8
24.8 25.7
10.6 9.9
2.9
2.6
North America
Europe
Rest of the world
India
Digital
Core
Revenue distribution by business segments (in %)
32.0 29.8
14.6 14.5
12.5 12.3
11.9 12.6
11.0 12.9
8.2
8.1
7.0
6.9
2.8
2.9
FS (1)
Retail (2)
COM (3)
EURS (4)
MFG (5)
Hi-Tech (6)
LS (7)
Others (8)
2022
2023
(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
60
Infosys Integrated Annual Report 2022-23 Capital Allocation Policy
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, and opportunities.
As of March 31, 2023, we had ₹24,640 crore in working capital on
a standalone basis, and ₹31,695 crore on a consolidated basis.
Consolidated cash and investments stand at ₹22,509 crore on a
standalone basis and ₹31,286 crore on a consolidated basis as on
March 31, 2023, as against `29,950 crore on a standalone basis,
and `37,419 crore on a consolidated basis as on March 31, 2022.
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, target maturity funds units, certificates of
deposit (CDs), commercial paper (CP), quoted bonds issued by
government and quasi-government organizations, and non-
convertible debentures. CDs and CPs represent marketable
securities of banks, NBFCs and eligible financial institutions for a
specified time period with high credit rating given by domestic
credit rating agencies. G-secs are highly liquid and marketable
instruments issued across tenure, backed by Government of
India carrying a sovereign credit. 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.
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 October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (Maximum Buyback Size,
excluding buyback tax) at a price not exceeding ₹1,850 per share
(Maximum Buyback Price), subject to shareholders’ approval.
The shareholders approved the proposal of buyback of equity
shares recommended by the Board of Directors by way of postal
ballot through e-voting and the result of which was declared
on December 3, 2022.
The buyback was offered to all 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 exchanges. The buyback of equity shares
through the stock exchanges commenced on December 7, 2022
and was completed on February 13, 2023. During this buyback
period, the Company purchased and extinguished a total of
6,04,26,348 equity shares from the stock exchanges at a volume
weighted average buyback price of ₹1,539.06 per equity share
comprising 1.44% of the pre-buyback paid-up equity share
capital of the Company. The buyback resulted in a cash outflow
of ₹9,300 crore (excluding transaction costs and tax on buyback).
The Company funded the buyback from its free reserves
including Securities Premium Account as explained in Section 68
of the Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2023, the Company has created a Capital Redemption
Reserve of ₹30 crore equal to the nominal value of the shares
bought back as an appropriation from the general reserve
and retained earnings.
During the year ended March 31, 2023, the Company paid an
interim dividend of ₹16.5 per share and announced a final
dividend of ₹17.5 per share, subject to shareholders’ approval
in the ensuing AGM. After returning the above amounts,
the Company would have returned approximately 86% of
the cumulative free cash flow for fiscals 2020, 2021, 2022
and 2023 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.
61
Infosys Integrated Annual Report 2022-23 Board’s report
Capital expenditure on tangible assets
Standalone
Consolidated
`1,208 crore
48.7%
`2 crore
0.1%
`1,267 crore
51.2%
`1,100 crore
46.2%
`1,281 crore
53.8%
`1,318 crore
46.6%
`2 crore
0.1%
`1,510 crore
53.3%
`1,174 crore
43.2%
`1,542 crore
56.8%
2023
Total -
`2,477 crore
2022
Total -
`2,381 crore
Infrastructure
Computer equipment
Vehicles
Infrastructure
Computer equipment
2023
Total -
`2,830 crore
2022
Total -
`2,716 crore
Infrastructure
Computer equipment
Vehicles
Infrastructure
Computer equipment
Leases
Standalone
`510 crore
57.9%
`371 crore
42.1%
Consolidated
`847 crore
24.2%
`8 crore
0.2%
`2,646 crore
75.6%
`306 crore
81.8%
`68 crore
18.2%
`449 crore
49.1%
`6 crore
0.7%
`459 crore
50.2%
2023
Total -
`881 crore
2022
Total -
`374 crore
Buildings
Computer equipment
Buildings
Computer equipment
2023
Total -
`3,501 crore
2022
Total -
`914 crore
Buildings
Computer equipment
Vehicles
Buildings
Computer equipment
Vehicles
62
Infosys Integrated Annual Report 2022-23 Dividend
The Company recommended / declared dividend as under:
Interim dividend
Final dividend
Total dividend
Payout ratio (interim and final dividend) *
Note:
Fiscal 2023
Fiscal 2022
Dividend per
share (in `)
Dividend payout
(in ` crore)
Dividend per
share (in `)
Dividend payout
(in ` crore)
6,943
7,260 (1)
16.50
17.50 (1)
34.00
69.5% (2)
15.00
16.00
31.00
57.2%
6,308
6,731
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.
* Payout ratio is computed as a percentage of free cash flow prepared under IFRS.
(1) Recommended by the Board of Directors at its meeting held on April 13, 2023. The payment is subject to the approval of the shareholders at the ensuing
AGM of the Company to be held on June 28, 2023. The record date for the purposes of the final dividend will be June 2, 2023 and payment will be made on
July 3, 2023.
(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 has returned 86% of the cumulative free cash flow for the years ended March 31, 2020, 2021, 2022 and 2023.
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 2023 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 SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
(“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, the 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 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’ or ‘digital first’ organisations. 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.
For details of our continued investments and outcomes
of our strategic initiatives, refer to the Strategy section of
the Integrated Report.
63
Infosys Integrated Annual Report 2022-23
Board’s report
Organization
Our go-to-market business units and solutions are detailed in the
Operating context section of the Integrated Report.
Infrastructure
There has been a net movement of 3.02 million sq. ft. of physical
infrastructure space during the year. The total available space as
on March 31, 2023 stands at 56.86 million sq. ft. We have presence
in 56 countries across 274 locations as on March 31, 2023.
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.
During the fiscal year ended March 31, 2023, the Group
completed two business combinations to complement its digital
offerings by acquiring 100% voting interests in:
a. oddity GmbH, oddity group services GmbH, oddity space
GmbH, oddity jungle GmbH, oddity code GmbH and oddity
waves GmbH (collectively known as oddity), a Germany-
based digital marketing, experience, and commerce
agency, on April 20, 2022.
b. BASE life science A/S, a consulting and technology firm in the
Life Science industry in Europe, on September 1, 2022.
These acquisitions are expected to strengthen the Group’s
creative, branding and experience design capabilities and
augment the Group’s life sciences expertise, scales its digital
transformation capabilities with cloud-based industry solutions
and expand its presence across Europe.
Subsidiaries
We, along with our subsidiaries, provide consulting, technology,
outsourcing and next-generation digital services. At the
beginning of the year, we had 27 direct subsidiaries and
50 step-down subsidiaries. As on March 31, 2023, we have
28 direct subsidiaries and 70 step-down subsidiaries. Further,
the Company does not have any material subsidiary. The changes
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 2023.
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, at www.infosys.com.
64
3. Human resources management
Our employees 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
resources management focuses on allowing our employees to
develop their skills, grow in their career and navigate their next.
Internal Committee (formerly 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 23 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, 2021 and 2022.
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 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.
Particulars of employees
The Company had 2,72,665 employees on standalone basis and
3,43,234 employees on consolidated basis as of March 31, 2023.
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
Infosys Integrated Annual Report 2022-23 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-report2023.pdf. The Integrated
Annual Report is 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 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.
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-regulations2023.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.
Our Corporate governance report for fiscal 2023 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, diversity, global business, leadership,
information technology, mergers and acquisitions, 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. 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.
65
Infosys Integrated Annual Report 2022-23 Board’s report
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, 2023, the Board
had eight members, consisting of an executive director,
a non-executive and non-independent director and six
independent directors. One of the independent directors of
the Board is a woman. The details of Board and committee
composition, tenure of directors, areas of expertise and other
details are available in the Corporate overview section 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), Code for independent directors of the Companies
Act, 2013 and of the Listing Regulations.
Board evaluation
The Nomination and Remuneration Committee engaged Egon
Zehnder, external consultants, to conduct Board evaluation
for the year. The evaluation of all the directors, committees,
Chairman of the Board, and the Board as a whole, was conducted
based on the criteria and framework adopted by the Board.
The Board evaluation process was completed during fiscal 2023.
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.
66
Directors and KMP
Inductions
1. The shareholders at the 41st AGM held on June 25, 2022
reappointed Salil Parekh as CEO and MD effective July 1, 2022
till March 31, 2027.
2. The shareholders vide postal ballot concluded on March
31, 2023 approved the appointment of Govind Iyer, as an
independent director effective January 12, 2023, for a term of
five (5) years till January 11, 2028.
3. The Board, based on the recommendation of Nomination
and Remuneration Committee, appointed D. Sundaram
as Lead Independent Director of the Company, effective
March 23, 2023.
4. Based on the recommendations of the Nomination and
Remuneration Committee and the Audit Committee, the
Board appointed Shaji Mathew as a Group Head of Human
Resources and further designated as an executive officer
effective March 22, 2023, for the purpose of reporting under
the rules of the U.S. Securities and Exchange Commission and
Key Managerial Personnel as defined under Ind AS 24, Related
Party Disclosures.
In the opinion of the Board, the independent directors
appointed during the year possess requisite integrity, expertise,
experience and proficiency.
Retirements and resignations
1. Ravi Kumar S., President (KMP), has resigned effective
October 11, 2022. The Board of Directors placed on record its
appreciation for the services rendered by him.
2. Mohit Joshi, President, resigned from the Company. He is on
leave from March 11, 2023 and will stay on leave till the last
date with the Company i.e. June 9, 2023. The Board placed on
record its appreciation for the services rendered by him.
3. Krishnamurthy Shankar, Group Head of Human Resources
(KMP), retired on March 21, 2023. He led the development
of a strong employee value proposition, helped build a
digital skills-based ecosystem and enabled digital career
paths for employees. The Board placed on record its sincere
appreciation for his contributions to the Company.
4. Kiran Mazumdar-Shaw, Lead Independent Director, retired as
member of the Board of Directors on completion of tenure
effective March 22, 2023. The Board placed on record their
appreciation for Ms. Shaw’s invaluable contribution, guidance,
and strategic vision, that has helped the Company build and
execute a resilient growth strategy.
5. The Board took note of Uri Levine’s retirement as an
Independent Director effective April 19, 2023 upon
completion of his term. The Board placed on record its sincere
appreciation for his contributions to the Company.
Committees of the Board
As on March 31, 2023, 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, the
Environment, Social and Governance (ESG) Committee.
Infosys Integrated Annual Report 2022-23 All committees comprise only independent directors, one of
whom is chosen as the chairperson of the committee.
Additionally, the Board had incorporated a Cybersecurity Risk
Sub-Committee of the Risk Management 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, which
forms part of this Integrated Annual 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, as our employees operate efficiently as a 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 training, reskilling, and building a security culture of
collective onus, encouraging shift left, enabling the developer
community with dedicated courses and resource kits went ahead
as planned, together with our overall initiatives on improving
cybersecurity processes, technologies and posture.
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,
which forms part of this Integrated Annual 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-2022-23.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 ₹2,43,11,422. Further, 4,47,153
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 Corporate governance
report and are also available on our website, at www.infosys.com/
IEPF. Details of shares / dividend transferred to IEPF can also be
obtained by accessing https://www.iepf.gov.in/IEPFWebProject/
SearchInvestorAction.do?method=gotoSearchInvestor\.
Members are requested to claim the dividend(s), which have
remained unclaimed/unpaid, by sending a written request to the
Company at investors@infosys.com or to the Company’s Registrar
and Transfer Agent KFin Technologies Limited at einward.ris@
kfintech.com or at their address at KFin Technologies Limited,
Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial
District, Nanakramguda, Serilingampally Mandal, Hyderabad
500032. Members can find the details of Nodal officer appointed
by the company under the provisions of IEPF at
https://www.infosys.com/investors/shareholder-services/
unclaimed-dividend-shares.html.
Directors’ responsibility statement
The financial statements are prepared in accordance with
the Indian Accounting Standards (Ind AS) under the historical
cost convention on accrual basis except for certain financial
instruments, which are measured at fair values, the provisions
of the Companies Act, 2013 and guidelines issued by SEBI.
The Ind AS are prescribed under Section 133 of the Companies
Act, 2013, read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and 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.
The directors confirm that:
•
•
•
In preparation of the annual accounts for the financial year
ended March 31, 2023 , 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.
67
Infosys Integrated Annual Report 2022-23 Board’s report
•
•
•
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 2023 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 2023 does not contain
any qualification, reservation, or adverse remark. The Secretarial
Auditors’ Report is enclosed as Annexure 5 to the Board’s report,
which forms part of this Integrated Annual Report.
The Auditor’s certificate confirming compliance with conditions
of corporate governance as stipulated under Listing Regulations,
for fiscal 2023 is enclosed as Annexure 4 to the Board’s report,
which forms part of this Integrated Annual 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 on request at the AGM, electronically.
Auditors
Statutory auditor
Deloitte Haskins & Sells LLP, Chartered Accountants (Firm
registration number 117366W/W-100018) (“Deloitte”) was
appointed as the statutory auditors of the Company, to hold
office for the second term of five consecutive years from the
conclusion of the 41st AGM of the Company held on June 25, 2022,
till the conclusion of the 46th AGM to be held in 2027, as required
under Section 139 of the Companies Act, 2013 read with the
Companies (Audit and Auditors) Rules, 2014.
Secretarial auditor
Makarand M. Joshi & Co., Company Secretaries (FCS: 5533,
CP: 3662), are appointed as secretarial auditor of the Company
for fiscal 2024, 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 education, healthcare,
women empowerment, sustainability, rehabilitating the
destitute, preserving Indian art and culture, rural development
and disaster relief.
68
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 US, Australia, and across Europe in UK,
Germany, France and Ukraine. 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.
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, which forms part of this Integrated Annual 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.
The BRSR disclosures form a part of this Integrated Annual
Report. The non-financial sustainability disclosures have been
independently assured by KPMG.
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,
water management and waste management. On the social front,
our emphasis is on the development of people, especially in
the areas of 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 our efforts to serve the interests of all
our stakeholders, by leading through our core values and setting
benchmarks in corporate governance.
The ESG Committee was constituted by the Board with effect
from 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 to review progress on the ESG
ambitions articulated in our ESG Vision 2030.
Infosys Integrated Annual Report 2022-23 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, Thiruvananthapuram, Visakhapatnam – 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, 2023
for and on behalf of the Board of Directors
Sd/-
D. Sundaram
Lead Independent Director
Sd/-
Salil Parekh
Chief Executive Officer
and Managing Director
69
Infosys Integrated Annual Report 2022-23 7
0
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
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
(In ₹ crore, except % of shareholding and exchange rate)
India
US
India
Mar 31,
2023
NA
INR
34
4,404 6,631
2,193
2,620
7,529
1,122
276
846
100.00
Dec 31,
2022
Dec 4,
2009
1 USD =
₹82.73
175
925 4,710
3,610
–
3,691
339
65
274
100.00
Mar 31,
2023
NA
INR
1,312
155 2,248
781
405
3,446
1,268
338
930
100.00
Germany
Dec 31,
2022
NA
1 EUR =
₹88.14
15
(424) 5,685
6,094
–
2,509
(310)
–
(310)
100.00
US
UK
Mar 31,
2023
NA
1 USD =
₹82.17
Mar 31,
2023
NA
1 GBP =
₹101.65
The
Netherlands
Dec 31,
2022
NA
China
Dec 31,
2022
NA
1 EUR =
₹88.14
1 RMB =
₹11.91
98
910 1,570
562
–
1,829
214
61
153
100.00
135
96
752
521
–
1,782
57
17
40
100.00
8
143
424
273
368
55
857
434
–
–
1,260
(2)
1,084
103
–
–
(2)
75.00
103
100.00
1
2
3
4
5
6
7
8
Infosys BPM
Limited (2)
Infosys
McCamish
Systems
LLC (3)
EdgeVerve
Systems
Limited
(EdgeVerve)
Infosys
Automotive
and Mobility
GmbH & Co.
KG
Infosys Public
Services, Inc.
USA (Infosys
Public
Services)
Infy
Consulting
Company
Ltd (4)
Stater
Nederland
B.V. (5)
Infosys
Technologies
(China) Co.
Limited
(Infosys
China)
Infosys Integrated Annual Report 2022-23 Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
Poland
Mar 31,
2023
Oct 1,
2007
1 PLN =
₹19.17
US
US
Dec 31,
2022
NA
Dec 31,
2022
Oct 27,
2020
1 USD =
₹82.73
1 USD =
₹82.73
9
Infosys
Poland Sp. z
o.o. (3)
10 WongDoody,
Inc (6)(7)
11
Blue Acorn iCi
Inc (formerly
Beringer
Commerce
Inc) (8)
4
802
1,258
452
87
1,048
107
23
84
100.00
1
6
287
439
168
286
151
112
–
–
963
149
638
37
31
(1)
118
100.00
38
100.00
12 Outbox
US
Jan 31,
2023
Mar 13,
2020
1 USD =
₹81.93
263
(167)
300
204
2
622
(45)
(78)
33
100.00
Singapore
Mar 31,
2023
Nov 16,
2018
1 SGD =
₹61.79
13
223
498
262
Mexico
Dec 31,
2022
NA
1 MXN =
₹4.25
65
364
565
136
–
–
604
42
5
37
60.00
538
61
15
46
100.00
China
Dec 31,
2022
NA
1 RMB =
₹11.91
1,004
(408)
998
402
–
476
(89)
–
(89)
100.00
Germany
Dec 31,
2022
NA
Switzerland Dec 31,
NA
2022
Czech
Republic
Mar 31,
2023
NA
1 EUR =
₹88.14
1 CHF =
₹89.6
1 CZK =
₹3.81
17
50
204
137
1
85
293
207
3
107
352
242
–
–
–
442
4
5
(1)
100.00
424
49
13
36
100.00
412
(9)
(2)
(7)
100.00
13
14
15
16
17
18
systems Inc.
dba Simplus
(US) (8)
Infosys
Compaz PTE.
Ltd (9)
Infosys
Technologies
S. de R. L. de
C. V. (Infosys
Mexico)
Infosys
Technologies
(Shanghai)
Company
Limited
(Infosys
Shanghai)
Infosys
Consulting
GmbH (4)
Infosys
Consulting
AG (4)
Infosys
(Czech
Republic)
Limited s.r.o (3)
7
1
Infosys Integrated Annual Report 2022-23 7
2
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
19 HIPUS Co.,
Ltd (9)
Japan
Mar 31,
2023
Nov 16,
2018
20 Infosys
Brazil
Dec 31,
2022
NA
Exchange
rate/
Reporting
currency
1 JPY =
₹0.62
1 BRL =
₹15.65
1 RON =
₹17.83
1 USD =
₹82.73
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
32
80
1,438
1,326
421
(324)
320
223
17
50
164
97
256
(921)
368
1,033
Romania
Dec 31,
2022
NA
NA
Dec 31,
2022
Mar 31,
2023
The
Netherlands
Dec 31,
2022
May 23,
2019
Dec 31,
2022
Oct 11,
2018
Dec 31,
2022
Oct 9,
2020
Singapore
Dec 31,
2022
NA
Jan 4, 2012 1 AUD =
18
74
244
152
₹55.03
1 EUR =
₹88.14
1 EUR =
₹88.14
1 USD =
₹82.73
1 SGD =
₹61.66
38
612
994
344
5
–
125
206
99
119
76
20
2,886
50 4,586
1,650
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
349
330
31
25
318
18
315
312
35
41
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
10
17
5
5
21
81.00
8
100.00
13
100.00
30
100.00
12
29
100.00
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
'
s
r
e
p
o
r
t
290
162
22
140
75.00
286
264
15
23
2
5
13
18
100.00
100.00
227
24
(7)
31
100.00
–
–
–
–
–
–
–
–
–
Dec 31,
2022
NA
1 SEK =
₹7.92
Dec 31,
2022
NA
1 AUD =
₹56.17
2
117
208
89
–
199
48
10
38
100.00
17
19
66
30
–
197
14
4
10
100.00
Dec 31,
2022
NA
1 EUR =
₹88.14
54
34
215
127
–
–
191
10
175
22
4
6
6
75.00
16
100.00
31 GuideVision,
s.r.o. (13)
Czech
Republic
Dec 31,
2022
Oct 1,
2020
1 CZK =
₹3.65
–
66
117
51
21
Consulting
Ltda.
Infosys
Consulting
S.R.L.
22 Panaya Ltd. (10)
Israel
23 Portland
Australia
Group Pty
Ltd (3)
24
Stater N.V. (9)
25 Fluido Oy (11)
Finland
26 Kaleidoscope
US
27
Animations
Inc(8)
Infosys
Singapore
Pte. Ltd.
(Infosys
Singapore)
28 Infosys
Sweden
Technologies
(Sweden)
AB (Infosys
Sweden)
29 Infosys
Australia
Management
Consulting
Pty. Limited (4)
30 Stater
Belgium
Belgium
N.V./S.A. (12)
Infosys Integrated Annual Report 2022-23
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
17
(3)
87
73
32
Infosys
Luxembourg
S.a.r.l
Luxembourg Mar 31,
NA
2023
33 BASE life
Denmark
science A/S (14)
34 Simplus
Australia
Jun 30,
2023
Sep 1,
2022
Jan 31,
2023
NA
35
Australia Pty
Ltd (15)
Fluido
Sweden AB
(Extero) (16)
36 Infosys BPO
Americas
LLC. (3)
37
Infy
Consulting
B.V. (4)
Sweden
Dec 31,
2022
NA
US
Mar 31,
2023
NA
The
Netherlands
Dec 31,
2022
NA
1 EUR =
₹89.44
1 DKK =
₹12.01
1 AUD =
₹57.44
1 SEK =
₹7.92
1 USD =
₹82.17
1 EUR =
₹88.14
–
25
127
18
(32)
48
11
3
40
130
(93)
57
1
44
73
Mar 31,
2023
Dec 14,
2021
1 MYR =
₹18.62
29
(26)
68
38 Infosys
Malaysia
(Malaysia)
SDN. BHD.
(formerly
Global
Enterprise
International
(Malaysia)
Sdn. Bhd.) (17)
39 Infosys
Dubai
Middle East
FZ LLC (11)
Dec 31,
2022
Jan 01,
2018
1 AED =
₹22.53
1
(16)
47
40 HypoCasso
B.V. (5)
The
Netherlands
Dec 31,
2022
41
UK
Infosys Fluido
U.K., Ltd.
(formerly
known as
Simplus U.K,
Ltd) (16)
Dec 31,
2022
NA
NA
1 EUR =
₹88.14
1 GBP =
₹99.53
8
4
11
48
(26)
15
–
–
–
–
–
–
–
–
–
–
173
8
–
8
100.00
162
(22)
(5)
(17)
100.00
142
13
122
14
119
27
96
9
92
(31)
89
(1)
80
80
16
(12)
–
3
3
2
–
–
4
–
13
100.00
11
100.00
24
100.00
7
100.00
(31)
100.00
(1)
100.00
12
75.00
(12)
100.00
102
62
26
20
28
65
62
29
37
42 Panaya Inc.
(Panaya)
US
Dec 31,
2022
Mar 5,
2015
1 USD =
₹82.73
–
386
724
338
–
76
2
4
(2)
100.00
7
3
Infosys Integrated Annual Report 2022-23 7
4
Sl.
No.
Name of the
subsidiary
Country
43 Infosys
Belgium
Consulting
(Belgium)
NV (4)
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
Dec 31,
2022
NA
1 EUR =
₹88.14
3
(12)
44
53
72
–
–
–
100.00
44 Infosys
France
Consulting
SAS (4)
45 Simplus
Philippines
Philippines,
Inc. (18)
46 Fluido
Norway
Norway
A/S (16)
Dec 31,
2022
NA
Jan 31,
2023
NA
Dec 31,
2022
NA
47 oddity waves
GmbH (19)
Germany
Dec 31,
2022
Apr 20,
2022
48 Infosys Chile
Chile
SpA
49 Fluido
Denmark
Denmark
A/S (16)
50 oddity jungle
GmbH (19)
Germany
51 oddity
Germany
GmbH (19)
52 oddity space
GmbH (19)
Germany
Turkey
53
Infosys
Turkey Bilgi
Teknolojileri
Limited
Sirketi
Dec 31,
2022
Dec 31,
2022
NA
NA
Dec 31,
2022
Apr 20,
2022
Dec 31,
2022
Apr 20,
2022
Dec 31,
2022
Apr 20,
2022
Dec 31,
2022
NA
54 Infosys Green
Forum (20)
India
Mar 31,
2023
NA
55 BASE life
Switzerland Jun 30,
science AG (21)
56 Infosys
Argentina
Consulting
S.R.L. (22)
2023
Dec 31,
2022
Sep 1,
2022
NA
1 EUR =
₹88.14
1 PHP =
₹1.5
1 NOK =
₹8.38
1 EUR =
₹ 88.14
1 CLP =
₹0.09
1 DKK =
₹11.85
1 EUR =
₹88.14
1 EUR =
₹88.14
1 EUR =
₹88.14
1 TRY =
₹4.42
INR
1 CHF=
₹89.58
1 ARS =
₹0.47
29
(12)
31
1
11
20
–
37
57
–
7
3
–
–
–
7
1
1
18
36
18
35
(1)
23
12
37
21
41
6
27
293
329
15
30
(54)
53
100
–
–
–
–
–
–
–
–
–
–
–
31
–
–
14
8
20
18
10
21
25
20
21
35
14
75
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
'
s
r
e
p
o
r
t
71
71
4
5
61
22
61
60
59
56
55
52
16
11
–
2
–
42
(54)
34
31
4
1
–
1
5
5
3
–
4
100.00
4
100.00
17
100.00
11
100.00
8
–
100.00
100.00
1
–
–
–
–
1
–
100.00
100.00
(54)
100.00
4
1
100.00
100.00
(3)
(1)
(2)
100.00
10
(32)
53
29
(36)
(9)
(27)
100.00
Infosys Integrated Annual Report 2022-23
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
57 Infosys
Limited
Bulgaria
EOOD
Bulgaria
Dec 31,
2022
NA
Dec 31,
2022
NA
Dec 31,
2022
NA
58 Kaleidoscope
US
Prototyping
LLC(23)
59 GuideVision
Hungary
Magyarország
Kft. (24)
60 oddity group
services
GmbH (19)
Germany
Dec 31,
2022
Apr 20,
2022
1 EUR =
₹88.14
Exchange
rate/
Reporting
currency
1 BGN =
₹45.07
1 USD =
₹82.73
1 HUF =
₹0.22
2
–
7
–
19
20
–
–
2
5
1
10
61 BASE life
Germany
science
GmbH (21)
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹89.44
–
(1)
10
62 oddity code
GmbH (19)
Germany
Dec 31,
2022
Apr 20,
2022
63 Infosys
Austria
Austria GmbH
Poland
Ireland
Dec 31,
2022
Dec 31,
2022
NA
NA
Dec 31,
2022
NA
1 EUR =
₹88.14
1 EUR =
₹88.14
1 PLN =
₹18.87
1 EUR =
₹88.14
–
1
–
1
2
7
1
27
1
4
1
2
Spain
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹89.44
–
1
14
Canada
Mar 31,
2023
NA
1 CAD =
₹60.67
13
(1)
18
64 GuideVision
Polska SP. Z
O.O. (24)
65 Infosys Fluido
Ireland, Ltd.
(formerly
known as
Simplus
Ireland, Ltd) (25)
66 BASE life
science
S.L. (21)(26)
67
Infosys Public
Services
Canada
Inc. (27)(28)
7
5
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
26
1
–
1
100.00
5
1
3
9
11
5
25
3
–
13
6
–
–
–
–
–
–
–
–
–
–
–
23
20
6
1
19
(1)
18
(1)
16
15
14
13
–
–
7
13
1
12
(1)
–
–
–
–
–
6
100.00
1
100.00
(1)
100.00
(1)
100.00
–
100.00
–
–
–
–
–
100.00
7
100.00
1
100.00
(1)
100.00
(2)
(1)
(1)
100.00
Infosys Integrated Annual Report 2022-23 7
6
Sl.
No.
Name of the
subsidiary
Country
68 Infosys
Germany
Financial
Services
GmbH
(formerly
known as
Panaya
GmbH) (29)
69 GuideVision
UK Ltd (24)(30)
UK
Qatar
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
Dec 31,
2022
NA
1 EUR =
₹88.14
–
(1)
77
78
–
11
–
–
–
100.00
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
'
s
r
e
p
o
r
t
Dec 31,
2022
Dec 31,
2022
NA
NA
Slovakia
Dec 31,
2022
NA
Germany
Dec 31,
2022
NA
Finland
Taiwan
Dec 31,
2022
NA
Dec 31,
2022
Apr 20,
2022
Jun 30,
2023
Sep 1,
2022
1 GBP =
₹101.65
Dec 31,
2022
Apr 20,
2022
1 RMB =
₹11.91
Dec 31,
2022
Apr 20,
2022
Jun 30,
2023
Sep 1,
2022
South Africa Dec 31,
NA
2022
1 GBP =
₹99.53
1 QAR =
`22.65
1 EUR =
₹88.14
1 EUR =
₹88.14
1 EUR =
₹88.14
1 TWD =
`2.69
1 RSD =
`0.75
1 EUR =
₹89.44
1 ZAR =
₹4.87
70
71
Infosys
Business
Solutions
LLC (31)
Fluido
Slovakia
s.r.o (16)
72 GuideVision
Deutschland
GmbH (24)
73 GuideVision
Suomi Oy (24)
74 oddity
Limited
(Taipei) (32)
75 BASE life
UK
science
Ltd. (21)
76 oddity
China
(Shanghai)
Co., Ltd. (32)
77 oddity code
D.O.O (33)
Serbia
78 BASE life
Itlay
science
S.r.l. (21)
79 Infosys South
Africa (Pty)
Ltd (11)
–
8
1
–
–
–
–
1
–
–
4
2
10
4
14
5
7
–
3
2
–
3
5
1
4
3
6
2
(1)
4
5
1
9
8
2
1
3
1
5
3
2
2
6
4
–
–
–
–
–
–
–
–
–
–
–
11
9
8
8
8
8
8
6
6
6
5
–
3
1
(4)
1
1
(1)
–
1
–
1
–
–
–
–
–
–
–
–
–
–
–
–
3
100.00
100.00
1
100.00
(4)
100.00
1
1
100.00
100.00
(1)
100.00
–
100.00
1
–
100.00
100.00
1
100.00
Infosys Integrated Annual Report 2022-23
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
80 BASE life
France
science
S.A.S (21)
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹89.44
81
Stater
Gmbh (5)(34)
Germany
Dec 31,
2022
82 Stater XXL
B.V. (5)
The
Netherlands
Dec 31,
2022
83 Infosys Nova
Holdings LLC.
(Infosys Nova)
US
Dec 31,
2022
NA
NA
NA
1 EUR =
₹88.14
1 EUR =
₹88.14
1 USD =
₹82.73
–
–
–
1
8
(6)
–
5
–
2,766
8
2,791
7
11
–
17
84 Infosys
Switzerland Dec 31,
Consulting
Holding
AG (Infosys
Lodestone)
2022
Oct 22,
2012
1 CHF =
₹89.6
162
347
614
105
85 Infosys Arabia
Saudi Arabia Dec 31,
NA
Limited (30)(35)
2022
86 Stater
Participations
B.V. (5)
The
Netherlands
Dec 31,
2022
NA
Dec 31,
2022
NA
1 SAR =
₹22
1 EUR =
₹88.14
1 EUR =
₹88.14
3
1
4
–
–
(260)
89
349
2
–
2
–
Dec 31,
2022
Mar 22,
2022
1 EUR =
₹88.14
–
(48)
361
409
–
–
–
–
–
–
–
–
–
5
2
1
–
–
–
–
–
1
(4)
1
23
45
–
–
–
–
–
–
–
–
–
–
–
1
100.00
(4)
75.00
1
75.00
23
100.00
45
100.00
–
–
70.00
75.00
–
100.00
–
(29)
–
(29)
100.00
Mar 31,
2023
NA
1 GBP =
₹101.65
–
1
1
–
–
Mar 31,
2023
Jun 2,
2015
INR
–
81
93
12
81
–
–
–
7
–
2
–
100.00
5
100.00
87 Infosys
Germany
Germany
Holding
Gmbh
88 Infosys
Germany
Germany
GmbH
(formerly
Kristall
247. GmbH
(“Kristall”)) (36)
89 Brilliant
UK
Basics
Limited (30)(37)
90 Skava
India
Systems
Private
Limited
(Skava
Systems) (30)
7
7
Infosys Integrated Annual Report 2022-23 7
8
Sl.
No.
Name of the
subsidiary
Country
91 Brilliant
UK
Basics
Holdings
Limited
(Brilliant
Basics) (30)
92
Infosys
Americas
Inc., (Infosys
Americas) (30)
93 BASE life
science Inc. (21)
94 Innovisor
Inc. (21)
95 Infosys BPM
UK Limited (3)
US
US
US
UK
96 Panaya
Germany
Germany
GmbH (10)(38)
97 Simplus ANZ
Pty Ltd.(18)
Australia
98 Infosys
Norway
Norway (11)(39)
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Investments
Total liabilities
(excluding
share capital
and reserves
and surplus)
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss) after
taxation (1)
% of
shareholding
Mar 31,
2023
Sep 8,
2017
1 GBP =
₹101.65
–
63
63
–
–
–
–
–
–
100.00
Mar 31,
2023
NA
1 USD =
₹82.17
1
–
1
Jun 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Jan 31,
2023
Mar 31,
2023
Sep 1,
2022
Sep 1,
2022
NA
NA
NA
NA
1 USD =
₹82.17
1 USD =
₹82.17
1 GBP =
₹101.65
1 EUR =
₹88.14
1 AUD =
₹57.44
1 NOK =
₹7.88
–
–
1
–
–
–
–
–
–
–
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100.00
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100.00
100.00
100.00
100.00
100.00
100.00
A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
'
s
r
e
p
o
r
t
(1) Converted at monthly average exchange rates
(2) On March 17, 2022, Infosys Limited acquired non-controlling interest of 0.01% of the voting
(14) On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (a wholly-
owned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S.
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) Effective December 31, 2021 WongDoody Holding Company Inc. and WDW Communications, Inc.
merged with WongDoody, Inc.
(7) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(8) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(9) Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.)
(10) Wholly-owned subsidiary of Panaya Inc
(15) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(16) Wholly-owned subsidiary of Fluido Oy
(17) On December 14, 2021, Infosys Singapore Pte. Ltd (formerly 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.)
(18) Wholly-owned subsidiary of Outbox Systems Inc.
(19) On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (a wholly-owned
subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.)) acquired 100% of
voting interests in oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity group
services GmbH, oddity code GmbH and oddity GmbH.
(20) Incorporated on August 31, 2021
(21) Wholly-owned subsidiary of BASE life science A/S
(11) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.)
(12) Majority-owned and controlled subsidiary of Stater Participations B.V
(13) Wholly-owned subsidiary of Infy Consulting Company Limited
(22) Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiary of Infosys Consulting
Holding AG) became the majority-owned and controlled subsidiary of Infosys Limited with effect
from April 1, 2022
Infosys Integrated Annual Report 2022-23
(23) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(24) Wholly-owned subsidiary of GuideVision s.r.o.
(32) Wholly-owned subsidiary of oddity GmbH
(33) Wholly-owned subsidiary of oddity code GmbH
(25) Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd)
(34) Incorporated on August 4, 2021
(26) Incorporated on September 6, 2022
(27) Incorporated on July 8, 2022
(28) Wholly-owned subsidiary of Infosys Public Services, Inc.
(29) Infosys Financial Services GmbH. (formerly Panaya GmbH) became a wholly-owned subsidiary of
Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.) with effect from February 23, 2023.
(30) Under liquidation
(31) Incorporated on February 20, 2022
(35) Majority-owned and controlled subsidiary of Infosys Limited
(36) On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly 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”)).
(37) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(38) Incorporated effective December 15, 2022
(39) Incorporated effective February 7, 2023.
Notes :
1.
Investments exclude investments in subsidiaries
2. Proposed dividend from any of the subsidiaries is nil except for Infosys BPM Limited and EdgeVerve which proposed a final dividend of `2,34,000 per equity share (`10,000 par value) and `3.05 per equity
share (`10 par value), respectively, subject to approval of shareholders in ensuing Annual General Meeting of the Company.
3. Reserve and surplus includes Other comprehensive income and securities premium.
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Bengaluru
April 13, 2023
7
9
Infosys Integrated Annual Report 2022-23 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, 2023, 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, 2023.
Bengaluru
April 13, 2023
for and on behalf of the Board of Directors
Sd/-
Sd/-
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
80
Infosys Integrated Annual Report 2022-23 Annexure 3 – Particulars of employees
We are a leading provider of consulting, technology, outsourcing and next-generation digital services. We enable clients across 56 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 change in remuneration in fiscal 2023 as compared to fiscal 2022 is primarily on account of change in perquisite value of stock incentives granted in previous years
and exercised during the year, and higher stock incentives exercised in certain cases and change in cash compensation. The change in perquisite value of stock incentives
exercised during the year also includes the impact of change in share price during the period of exercise.
Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
3(a) Remuneration details of directors and KMP
Name
Title
Director
Identification
Number
(DIN)
Nandan M. Nilekani (2)
00041245
Non-executive and Non-
independent Chairman
Kiran Mazumdar-
Shaw (3)
00347229
Lead Independent Director
D. Sundaram (4)
00016304
Lead Independent Director
Michael Gibbs
Uri Levine (5)
Bobby Parikh
Chitra Nayak
Govind Iyer (6)
Salil Parekh (7)
08177291
08733837
00019437
09101763
Independent Director
Independent Director
Independent Director
Independent Director
00169343
Independent Director
01876159
Chief Executive Officer
and Managing Director
Chief Financial Officer
Company Secretary
Nilanjan Roy (8)
A.G.S. Manikantha (9)
NA
NA
MRE – Median Remuneration of Employees
Notes:
% increase of
remuneration
in fiscal 2023
as compared to
fiscal 2022 (1)
Ratio of
remuneration
to MRE (1)
% increase of remuneration in
fiscal 2023 as compared to fiscal
2022 (excluding perquisite value
of stock incentives exercised
during the year)
Ratio of remuneration
to MRE (excluding
perquisite value of stock
incentives exercised
during the year)
No. of
RSUs
granted
in fiscal
2023
–
NA
21
41
47
22
48
NA
(21)
28
1
–
NA
30
29
26
22
28
NA
627
118
17
–
NA
21
41
47
22
48
NA
38
18
15
–
NA
30
29
26
22
28
NA
287
55
12
–
–
–
–
–
–
–
–
3,53,953
45,829
2,750
The remuneration details in the above table pertain to directors and KMP as required under the Companies Act, 2013. The table above additionally includes the % increase in remuneration excluding
perquisite value of stock incentives exercised during the year.
8
1
Infosys Integrated Annual Report 2022-23 A
n
n
e
x
u
r
e
s
t
o
t
h
e
B
o
a
r
d
'
s
r
e
p
o
r
t
8
2
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 2023 and full fiscal 2022. 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 2023.
(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 2023 is mentioned separately 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) Kiran Mazumdar-Shaw retired as Lead Independent Director effective March 22, 2023.
(4) D. Sundaram was appointed as Lead Independent Director effective March 23, 2023.
(5) Uri Levine to retire as Independent Director effective April 19, 2023.
(6) Govind Iyer was appointed as Independent Director effective January 12, 2023.
(7) a) Remuneration includes ₹30.60 crore pertaining to exercise of 1,24,783 Restricted Stock Units (RSUs) under the 2015 Plan and 73,962 RSUs under the 2019 Plan during fiscal 2023.
b) On the recommendation of the Nomination and Remuneration Committee, in accordance with the terms of his previous employment agreement, the Board approved
i) the grant of 84,361 performance-based RSUs under the 2015 Plan effective May 2, 2022
ii) the grant of 64,893 performance-based RSUs for fiscal 2023 under the 2019 Plan effective May 2, 2022. 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 previous employment agreement.
c)
On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his revised employment agreement effective
July 1, 2022, the Board approved
i) the grant of 1,40,228 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain performance targets.
ii) the grant of 12,894 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain environment, social and governance milestones as
determined by the Board.
iii) the grant of 32,236 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of the Company's performance on cumulative relative TSR over
the years and as determined by the Board.
iv) the grant of 19,341 annual time-based RSUs for fiscal 2023 under the 2015 Plan effective February 1, 2023
These RSUs will vest in line with the revised employment agreement.
(8) a) Remuneration includes ₹5.67 crore on account of exercise of 26,701 RSUs under the 2015 Plan and 10,667 RSUs under the 2019 Plan during fiscal 2023.
b) On the recommendation of the Nomination and Remuneration Committee, the Board approved
i) the grant of 5,616 annual performance-based RSUs under the 2015 Plan effective May 2, 2022
ii) the grant of 5,931 annual performance-based RSUs under the 2015 Plan effective February 1, 2023
iii) the grant of 11,282 annual time-based RSUs under the 2015 Plan effective February 1, 2023
iv) the grant of 13,000 performance-based RSUs under the 2019 Plan effective June 1, 2022. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in
the 2019 Plan.
v) the grant of 10,000 performance-based RSUs under the 2019 Plan effective March 31, 2023. 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.
(9) a) Remuneration includes ₹0.46 crore on account of exercise of 1,000 RSUs under the 2015 Plan and 2,000 RSUs under the 2019 Plan during fiscal 2023.
b)
On the recommendation of the Nomination and Remuneration Committee, the Board approved the grant of 1,000 and 1,750 performance-based RSUs under the 2019 Plan effective June 1, 2022 and
March 31, 2023, respectively. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
The MRE was ₹9,00,012 and ₹8,14,332 in fiscal 2023 and fiscal 2022, respectively. The increase in MRE in fiscal 2023, as compared to fiscal 2022, is 10.52%.
The average annual increase in the salaries of employees was 9.9% 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.
Infosys Integrated Annual Report 2022-23
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 2023 (In ₹) (1)
No. of RSUs granted
in fiscal 2023 (2)
Previous employment and
designation
Employee
name
Designation
Mohit Joshi
President
Salil Parekh
CEO & MD
Martha G. King
Chief Client Officer
Karmesh Gul
Vaswani
Segment Head – CPG,
Logistics and Retail
BA(H), MBA
B.Tech, ME
BS
BE
Inderpreet
Sawhney
Group General Counsel and
Chief Compliance Officer
BA LLB, LLM
Jasmeet Singh
Segment Head,
Manufacturing
Anand
Swaminathan
Krishnamurthy
Shankar
Segment Head –
Communication, Media
and Technology
Group Head – Human
Resources and Infosys
Leadership Institute
Frank
Satterthwaite
Senior Vice President –
Delivery, FSHIL
Nilanjan Roy
Chief Financial Officer
B.Tech, MBA
ACS, AICWA,
MS
BA, PGD
BS, MBA
B.Com (H),
CA
48
58
59
51
58
51
51
60
60
56
26 Dec 7, 2000
UK
35 Jan 2, 2018
India
38 Oct 12, 2020 US
57,32,10,914 (3)
56,44,69,740 (4)
23,28,65,457
31,000 ABN AMRO Bank, Manager
3,53,953 Capgemini, Director General
53,986 Vanguard, Managing
Director
30 Mar 3, 2003 UK
22,90,22,699 (5)
60,350 Accenture, Senior Manager
32 Jul 3, 2017
US
21,92,99,018 (6)
70,030 Wipro, Senior Vice President
and General Counsel
27 May 31, 2011 US
14,44,49,984 (7)
48,370 HCL America, Vice President
31 Apr 26, 1999 US
13,13,26,079 (8)
48,370 Rane Brake Linings Limited,
Manager Information
Technology
39 Oct 26, 2015 India
13,02,31,856 (9)
30,990 Philips India, Head of HR
33 Oct 12, 2020 US
10,63,28,234 (10)
31,869 Vanguard, Principal
32 Mar 1, 2019
India
10,61,66,383 (11)
45,829 Bharti Airtel Limited, Global
Chief Financial Officer
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. Additionally, the number of stock incentives granted in fiscal 2023 is
included in the table above.
(2)
Includes equity-settled and cash-settled RSUs issued at par under the 2015 and 2019 Plans.
(3) a) Remuneration includes ₹38.95 crore on account of exercise of 92,475 RSUs, 2,25,500 ESOPs under the 2015 Plan and 27,333 under the 2019 Plan during fiscal 2023.
b) Mohit Joshi resigned as President from the Company. He is on leave from March 11, 2023 and will stay on leave till the last date with the Company, that is, June 9, 2023.
(4) Remuneration includes ₹30.60 crore on account of exercise of 1,24,783 RSUs under the 2015 Plan and 73,962 under the 2019 Plan during fiscal 2023.
(5) Remuneration includes ₹12.87 crore on account of exercise of 28,275 RSUs, 62,400 ESOPs under the 2015 Plan and 14,333 RSUs under the 2019 Plan during fiscal 2023.
(6) Remuneration includes ₹12.46 crore on account of exercise of 28,975 RSUs, 55,566 ESOPs under the 2015 Plan and 14,333 RSUs under the 2019 Plan during fiscal 2023.
(7) Remuneration includes ₹7.96 crore on account of exercise of 17,125 RSUs, 33,700 ESOPs under the 2015 Plan and 12,000 RSUs under the 2019 Plan during fiscal 2023.
(8) Remuneration includes ₹6.72 crore on account of exercise of 4,600 RSUs, 50,200 ESOPs under the 2015 Plan and 4,666 RSUs under the 2019 Plan during fiscal 2023.
(9) a) Remuneration includes ₹8.09 crore on account of exercise of 22,425 RSUs, 28,500 ESOPs under the 2015 Plan and 10,000 RSUs under the 2019 Plan during fiscal 2023.
8
3
b) Krishnamurthy Shankar retired as Group Head – Human Resources and Infosys Leadership Institute effective March 21, 2023.
(10) Remuneration includes ₹1.37 crore on account of exercise of 6,872 RSUs under the 2015 Plan and 2,352 RSUs under the 2019 Plan during fiscal 2023.
(11) Remuneration includes ₹5.67 crore on account of exercise of 26,701 RSUs under the 2015 Plan and 10,667 RSUs under the 2019 Plan during fiscal 2023.
Infosys Integrated Annual Report 2022-23 Annexure 4: Independent Auditor’s certificate on corporate governance
INDEPENDENT AUDITOR’S CERTIFICATE
TO THE MEMBERS OF INFOSYS LIMITED
REF:IL/2023-24/001
CERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement letter reference number IL/2022-23/17 dated July 15, 2022
and addendum dated March 30, 2023.
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, 2023, 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, 2023.
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, 2023
84
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 23039826BGXRYS6721
Infosys Integrated Annual Report 2022-23 Annexure 5 – Secretarial audit report for the financial year ended March 31, 2023
Form No. MR-3
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Infosys Limited
Electronics City, Hosur Road
Bengaluru-560100, Karnataka, India
We have conducted the secretarial audit of the compliance with applicable statutory provisions and the adherence to good corporate
practices by Infosys Limited (“the Company”). The secretarial audit was conducted in a manner that provided us a reasonable basis for
evaluating the corporate conduct / statutory compliances and expressing our opinion thereon.
Auditor’s responsibility
Our responsibility is to express an opinion on the compliance of the applicable laws and maintenance of records based on audit. We
have conducted the audit in accordance with the applicable Auditing Standards issued by The Institute of Company Secretaries of India.
The Auditing Standards require that the Auditor shall comply with statutory and regulatory requirements and plan and perform the audit
to obtain reasonable assurance about compliance with applicable laws and maintenance of records.
Based on our 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, we hereby report that in our opinion, the Company has, during the audit period from April 01, 2022 to March 31, 2023
(“the audit period”) complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and
compliance mechanisms in place to the extent and in the manner reporting made hereinafter:
(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) The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment and Overseas Direct Investment (External Commercial Borrowings are not applicable to the Company
during the Audit Period);
(v) The following regulations and guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (“the 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 (Issue of Capital and Disclosure Requirements) Regulations, 2018; (not applicable to the
Company during the audit period)
(d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021; (not applicable to
the Company during the audit period)
(f) 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;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (not applicable to the Company during
the audit period) and
(h) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018. (“the Buyback Regulations”)
85
Infosys Integrated Annual Report 2022-23 Annexures to the Board's report
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments
made thereunder (“the Listing Regulations”).
We further report that, with regard to the compliance system prevailing in the Company and on the examination of the relevant
documents and records in pursuance thereof, on test-check basis, the Company has generally complied with the following laws
applicable specifically to the Company:
•
•
The Special Economic Zones Act, 2005 and the rules made thereunder; and
Software Technology Parks of India Rules and Regulations
During the audit period, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines and Standards
etc. made thereunder.
We 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 audit period were carried
out in compliance with the provisions of the Act and Listing Regulations.
Adequate notice was given to all directors to schedule Board meetings, agenda and detailed notes on agenda were sent at least seven
days in advance (a few meetings were convened at shorter notice for which necessary approvals were obtained as per applicable
provisions). 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.
All decisions at Board meetings and Committee meetings are carried out unanimously as recorded in the minutes of the meetings of the
Board of Directors or Committees of the Board, as the case may be.
We further report that 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.
We further report that during the audit period,
•
•
The Company bought back 6,04,26,348 fully paid-up equity shares of face value of `5/- at the average price of `1539.06/-(rounded
off to two decimals) each through the stock exchange mechanism as prescribed under the Buyback Regulations. The Company has
extinguished all the Equity Shares purchased under the Buyback.
The Company has issued and allotted 22,47,751 Equity Shares of face value of `5/- each pursuant to 2015 Stock Incentive
Compensation Plan and the Infosys Expanded Stock Ownership Program 2019.
Place: Mumbai
Date: April 13, 2023
This report is to be read with Annexure A which forms an integral part of this report.
For Makarand M. Joshi & Co.
Company Secretaries
Sd/-
Makarand M. Joshi
Partner
FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533E000088990
86
Infosys Integrated Annual Report 2022-23 Annexure A
To,
The Members,
Infosys Limited
Electronics City, Hosur Road
Bengaluru-560100, Karnataka, India
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the Management of the Company. Our responsibility is to express an opinion
on these secretarial records based on our audit.
2. We have followed the audit practices and processes 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 accurate facts are reflected in secretarial
records. We believe that the processes and practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, we 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
management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance of the future viability of the Company nor of the efficacy or effectiveness with
which the Management has conducted the affairs of the Company.
Place: Mumbai
Date: April 13, 2023
For Makarand M. Joshi & Co.
Company Secretaries
Sd/-
Makarand M. Joshi
Partner
FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533E000088990
87
Infosys Integrated Annual Report 2022-23 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 education, healthcare,
women empowerment, environmental sustainability, rehabilitating the destitute, preserving Indian art and culture, rural development
and disaster relief. We contribute to serve the development of people by shaping their future with meaningful opportunities, thereby
accelerating the sustainable development of society while preserving the environment, and making our planet a better place today and
for future generations.
Objectives
Our broad objectives, as stated in our CSR Policy, include:
• Making a positive impact on society through economic development with minimal resource footprint, and
•
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 education and enhancing vocational skills
Promoting healthcare including preventive healthcare
Promoting gender equality by empowering women
Environmental sustainability and ecological balance
•
•
•
•
• Destitute care and rehabilitation
•
Protection of national heritage, restoration of historical sites and 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 during the year are listed below:
•
•
•
•
•
•
Support rapid operationalization of the Mother and Child Block at the All-India Institute of Medical Sciences (AIIMS) through
provision of medical equipment;
In partnership with Ramakrishna Mission, providing schools across the country with STEM labs, online courses, and scholarships to
meritorious students;
Installed household biogas units and high-efficiency biomass cookstoves for smoke-free kitchens, support organic farming, long-
term socio-economic and health benefits for the communities;
Infosys Springboard, a digital literacy program powered by tech platform that enables students to acquire core digital skills, life skills
and become lifelong learners;
Partner with the Rehabilitation and Welfare section of the Indian Army to provide educational grants to widows and children of army
personnel who lost their lives while in service;
Providing job-readiness skills training and placement to unemployed youth in the UNXT program with Unnati.
2. Composition of CSR Committee:
Sl.
No.
1
2
3
4
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
Govind Iyer (1)
Chitra Nayak
Uri Levine
Chairperson
Member
Member
Kiran Mazumdar-Shaw (2)
Chairperson
NA
4
4
4
NA
4
4
4
(1) Appointed as a member of the Committee effective January 13, 2023, and the Chairperson effective March 23, 2023
(2) Ceased to be a Chairperson and member of the Committee due to retirement as Independent Director effective March 22, 2023
88
Infosys Integrated Annual Report 2022-23 3. Web link(s) for composition of CSR committee, CSR policy and CSR projects approved by the Board.
•
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, 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 11, 2023, has approved the annual
action plan / projects for fiscal 2024, the details of which are available on our website, at
https://www.infosys.com/investors/reports-filings/documents/annual-action-plan-fy24.pdf
•
•
•
4. Executive summary and web link(s) of Impact Assessment reports
Overview:
The Company fulfils its CSR ambitions and initiatives, both through its internal CSR volunteers & groups and through the Infosys
Foundation – a not-for-profit entity.
Given the scale and impact of the CSR projects, a robust methodology for documenting the objectives and corresponding measurement
criteria has been identified and implemented. This document includes:
Key objectives:
• Obtain insights into projects to determine the overall effectiveness and impact;
• Use measurable indicators to gauge progress of grantee organizations in meeting their intended milestones and long-term goals;
•
•
•
Provide frameworks, metrics and tools for ongoing evaluation, monitoring, and design;
Provide recommendations for decision-making for grants; and
Serve as a guidepost for future projects.
Methodology:
Results will be measured through a process-outcome evaluation focused on generating appropriate evidence through four key channels:
1. Key informant interviews:
These are in-depth interviews with individuals who have first-hand knowledge about the projects, the underlying need, the people/
community served by the project, and the intended use of the grant. These interviews are conducted in two rounds – prior to the actual
site visit and then as a summative exercise to triangulate the nature of the findings.
2. Site visits:
These are in-person visits to the project or program sites and the surrounding communities to gather information based on a checklist of
program milestones. These visits and discussions facilitate the research team to come up with observations, and or draw conclusions.
3. Secondary data analysis:
This is a desk-based analysis of data from grantee organizations on the usage of grant, timelines, and monitoring data using
management information systems (MIS), photographs, press releases, among others.
4. End user surveys:
These are face-to-face, web-based, or telephone-based interactions with end users or beneficiaries of projects.
The data thus gathered from primary and secondary sources is analyzed and triangulated to present a comprehensive assessment of
project outcomes and implementation processes.
The executive summary includes details of 16 CSR projects considered for impact assessment, conducted by LEAD @ Krea University (1).
(1) LEAD at Krea University (Leveraging Evidence for Access and Development) is research centre that is part of IFMR (The Institute for Financial Management and
Research) Society.
89
Infosys Integrated Annual Report 2022-23 Annexures to the Board's report
Executive summary of assessed grants:
Projects undertaken for impact assessment in the current year cover the broad areas of education, healthcare, destitute care, rural
development, and environmental sustainability as described below. These projects align with the ESG framework and support 10
of the UN SDG goals.
A. EDUCATION
Focus on science and technology
•
• Centre of Excellence to recognize, encourage and foster world-class contributions to science and research
Sl. No. Beneficiary name
Project description
1.
Infosys Science Foundation (ISF), Karnataka
Construction of a three-story 37,670 sq. ft. Centre of Excellence building on-campus,
with spaces to host public forums, seminars and prize ceremonies.
B. HEALTHCARE
•
Enhancing medical infrastructure
Sl. No. Beneficiary name
Project description
1.
2.
Sri Jayadeva Institute of Cardiovascular
Sciences & Research, Karnataka
Construction of a four-story outpatient block within the hospital premises to address
increased patient load and acute shortage of space, and along with provision of
medical equipment to provide affordable, high quality critical cardiac care facilities.
Kidwai Memorial Institute of Oncology,
Karnataka
The block has a built-up area of over 1,70,000 sq. ft. and a capacity of 350 beds (100
ICCU beds and 250 general ward beds).
Construction of a five-story outpatient block within the hospital premises to address
increased patient load and consolidate the eight outpatient departments spread
across various buildings on campus.
The building is approximately 75,000 sq. ft. and serves an estimated 2,500 cancer
patients daily.
C. DESTITUTE CARE
•
•
•
•
•
Support for people affected by the COVID-19 pandemic
Flood relief
Infrastructure projects to address the needs of patients and their families
Short-stay facilities for ex-servicemen and war widows
Protection of wildlife and forest reserves
1. Relief efforts
Sl. No. Beneficiary name
Project description
1.
• Navy Welfare and Wellness Association
•
(NWWA), Kerala
• Ramakrishna Kutir, Uttarakhand
• Seva Bharathi, Kerala
• Sri Ramakrishna Sevashrama,
Andhra Pradesh
Implementation of flood relief efforts including immediate disaster relief to 6,975
households (Andhra Pradesh: 6,450 and Kerala: 525).
• Rehabilitation, infrastructure repair and reconstruction of 38 households and 2
care homes in Kerala and Uttarakhand and 126 schools in Andhra Pradesh.
• Distribution of stationery to 5,276 students in Andhra Pradesh.
2.
• Nirmaan, Telangana
• Ullal Municipal Corporation,
Karnataka
COVID-19 pandemic relief efforts:
•
Infrastructure capacity building of a public hospital and an electric crematorium.
– A 25-bed pediatric intensive care unit was added to the existing hospital
in Hyderabad.
– The electric crematorium in Mangaluru is a cost-effective, time-efficient,
and environment-friendly facility.
90
Infosys Integrated Annual Report 2022-23 2. Infrastructure projects
Beneficiary name
Sl.
No.
1.
Tata Memorial Centre, Maharashtra
2.
National Cancer Institute, Haryana
Sri Venkateswara Zoological Park, Andhra
Pradesh
3.
4.
5.
Project description
Construction of a 12-story stay facility for patients and their caregivers on the new
ACTREC campus. It has an area of 2,30,850 sq. ft. and is utilized by an estimated 300
patients each month.
Construction of a long-term ten-level stay facility for patients and their caregivers
to access sustained medical care at AIIMS Jhajjar, a campus of AIIMS New Delhi.
The building has a total area of 2,71,250 sq. ft., with an estimated capacity to
accommodate 806 beds.
Construction of a protective wall for defense against trespassers, poachers, the
spread of forest fires, smugglers and other external threats. The wall is eight
kilometers long, 2.4 meters high, and has a 900 mm high barbed wire fencing over
the wall.
Sri Chamarajendra Zoological Gardens,
Karnataka
Construction of a 25,000 sq. ft. animal enclosure to house the members of an
endangered species.
Rajya Sainik Sadan, Odisha
Construction of a short-stay rest house for war widows, disabled soldiers, ex-
servicemen, and their families. It is a four-storey building with a built-up area of
approximately 11,800 sq. ft.
D. RURAL DEVELOPMENT
The project serves the long-term goal of helping girls from rural backgrounds achieve high standards in education.
Beneficiary name
Sl.
No.
1.
Ramakrishna Mission, Karnataka
Project description
Construction of a two-floor academic block at Sri Sarada Devi Vidya Kendra School
for girls to continue their education. The block consists of six classrooms, four
laboratories, two washrooms, an amphitheater, a library, a staff room, an indoor
sports hall, a cultural center and an underground water reservoir.
E. SUSTAINABILITY
The Foundation undertook a project of rejuvenating a water body of historical importance.
Sl.
No.
1.
Beneficiary name
Project description
General Public; Department of Archeology,
Government of Karnataka
Rejuvenation of two water bodies, renovation of surrounding heritage structures,
construction of compound walls around the site, and implementation of a rainwater
harvesting system in Melukote. This will benefit about 90 lakh visitors in 10 years.
Detailed impact assessment reports can be accessed at
https://www.infosys.com/investors/reports-filings/documents/csr-impact-assessment-reports2022-23.pdf.
5. (a) Average net profit of the company as per sub-section (5) of Section 135: ₹21,842.00 crore
(b) Two percent of average net profit of the Company as per sub-section (5) of Section 135: ₹436.84 crore
(c) Surplus arising out of the CSR projects or programs or activities of the previous financial years: Nil
(d) Amount required to be set-off for the financial year, if any: Nil
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: ₹436.84 crore
6. (a) Amount spent on CSR projects (both ongoing project and other than ongoing project): ₹390.17 crore
(b) Amount spent in administrative overheads: ₹0.85 crore
(c) Amount spent on impact assessment, if applicable: ₹0.49 crore
(d) Total amount spent for the financial year [(a)+(b)+(c)]: ₹391.51 crore
91
Infosys Integrated Annual Report 2022-23
Annexures to the Board's report
(e) CSR amount spent or unspent for the financial year:
Total amount spent
for the financial year
(In ₹ crore)
Total amount transferred to unspent CSR
account as per subsection (6) of Section 135
Amount transferred to any fund specified under Schedule
VII as per second proviso to sub-section (5) of Section 135
Amount (In ₹ crore)
Date of transfer Name of the fund
Amount
Date of transfer
391.51
45.33
Refer to Note
NA
NA
NA
Amount unspent (In ₹ crore)
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 Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended (“CSR Rules”).
(f) Excess amount for set-off, if any:
Sl.
No.
(i)
(ii)
(iii)
(iv)
(v)
Particular
Two percent of average net profit of the company as per sub-section (5) of Section 135
Total amount spent for the financial year
Excess amount spent for the financial year [(ii)-(i)]
Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any
Amount available for set off in succeeding financial years [(iii)-(iv)]
7. Details of unspent CSR amount for the preceding three financial years:
Sl.
No.
Preceding
financial
year(s)
Amount
transferred to
unspent CSR
account under
sub-section (6)
of Section 135
(In ₹ crore)
Balance amount
in unspent CSR
account under
sub-section (6)
of Section 135 (1)
(In ₹ crore)
Amount
spent in the
financial
year
(In ₹ crore)
Amount transferred to a fund
as specified under Schedule
VII as per second proviso to
sub-section (5) of Section 135,
if any
Amount
(In ₹ crore)
Date of
transfer
Amount
remaining to
be spent in
succeeding
financial years
(In ₹ crore)
Amount
(In ₹ crore)
436.84
391.51
Nil
Nil
Nil
Deficiency,
if any
Fiscal 2020
Fiscal 2021
Fiscal 2022
1
2
3
Note:
(1) Unspent balance as on April 1, 2022
–
49.52
51.79
–
21.74
51.79
–
21.74
42.65
Nil
Nil
Nil
NA
NA
NA
Nil
Nil
9.14
NA
NA
NA
92
Infosys Integrated Annual Report 2022-23 8. Details of capital assets created or acquired during the financial year:
The number of capital assets created / acquired: 23
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in
the financial year:
Sl.
No.
Short particulars of the
property or asset(s)
[including complete
address and location of the
property]
Pin code
of the
property
or asset(s)
Date of
creation
Amount
of CSR
amount
spent (1)
(In ₹ crore)
Details of entity/ authority/ beneficiary of the
registered owner
Name
Registered address
CSR
Registration
Number,
if applicable
1
2
3
4
5
6
7
Construction of a girls’ hostel
building
Address: Indian
Institute of Information
Technology Tiruchirappalli,
Karumandapam, Pirattiyur,
Tiruchirappalli, Tamil Nadu
Infrastructure of a
modernized cath lab and a
vascular access center
Address: Institute of Nephro
Urology at Victoria Hospital
Campus, Bengaluru,
Karnataka
Facilitating COVID-19 relief
efforts by providing essential
medical equipment
Address: Chengalpattu
Medical College Hospital,
Tamil Nadu
6,971 biogas units for smoke-
free kitchens to various
beneficiaries
(Individual households)
Address: Nagpur and
Bhandara, Maharashtra
4,000 improved cookstoves
to various beneficiaries
(Individual households)
Address: Udaipur, Rajasthan
37,200 improved cookstoves
to various beneficiaries
(Individual households)
Address: Latur, Osmanabad,
Solapur, Maharashtra
10,000 improved cookstoves
to various beneficiaries
(Individual households)
Address: Garo Hills,
Meghalaya
620009
Feb 3, 2023
6.98
NA
Indian Institute
of Information
Technology -
Tiruchirappalli
560002
Mar 18, 2023
5.10
NA
Victoria Hospital
Indian Institute
of Information
Technology
Tiruchirappalli,
Karumandapam,
Pirattiyur,
Tiruchirappalli,
Tamil Nadu - 620009
Institute of Nephro
Urology at Victoria
Hospital Campus,
Bengaluru,
Karnataka - 560002
603001
Mar 28, 2023
1.50
NA
Chengalpattu
Medical College
Hospital
Chengalpattu Medical
College Hospital,
Tamil Nadu – 603001
NA
NA
NA
NA
Apr 1, 2022 to
Mar 31, 2023
8.39
Apr 1, 2022 to
Mar 31, 2023
2.28
Apr 1, 2022 to
Mar 31, 2023
6.90
Apr 1, 2022 to
Mar 31, 2023
3.19
NA
NA
NA
NA
Nagpur and Bhandara,
Maharashtra
Udaipur, Rajasthan
Latur, Osmanabad,
Solapur, Maharashtra
Garo Hills, Meghalaya
Various
beneficiaries
(Individual
households)
Various
beneficiaries
(Individual
households)
Various
beneficiaries
(Individual
households)
Various
beneficiaries
(Individual
households)
Note:
(1) 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-assets2022-23.pdf.
Includes projects which have been completed in fiscal 2023.
93
Infosys Integrated Annual Report 2022-23 Annexures to the Board's report
9. Reasons for not spending two percent of the average net profit as per sub-section (5) of Section 135
During fiscal 2023, the Company has spent ₹391.51 crore on various projects. The unspent balance of ₹45.33 crore is towards various
ongoing projects and will be transferred to the unspent CSR account and spent in accordance with the CSR 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 2023 are provided in the Corporate governance report. The expenditure made towards CSR in
Australia, Europe and through Infosys Foundation USA is as follows:
Focus area
Teacher training
Advocacy and awareness
Research and curriculum
Classroom aids and technology
Student education
Humanitarian assistance in Eastern Europe
Operating expenses
Total
Bengaluru
April 13, 2023
(In US$)
Amount
1,871,839
603,680
368,150
150,000
1,389,379
1,086,069
237,762
5,706,879
Sd/-
Sd/-
Govind Iyer
Chairperson, CSR Committee
Salil Parekh
Chief Executive Officer
and Managing Director
94
Infosys Integrated Annual Report 2022-23 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 resulted in Infosys
achieving carbon neutrality for four years in a row since
fiscal 2020, across all emissions, as per PAS 2060:2014 standards.
We continue to remain carbon neutral for fiscal 2023, aligning to
global commitments, and supporting the global response to the
threat of climate change.
Resource conservation initiatives
Conservation of natural resources (energy, water) is important
to maintain ecological balance and make them available for
future generations, and help protect the environment. Resource
conservation initiatives at Infosys have been focused, continuous
and imbibed in our operations and new infrastructure
development. The introduction of highly efficient new
buildings, major improvements in current buildings, intelligent
automation, water management plans, and waste treatment and
management projects have greatly reduced our environmental
impact. We have been able to expand our business while keeping
resource intensity low.
Increased adoption of renewable energy in our operations has
helped avoiding our emissions, and our high-impact carbon
offset projects have enabled us to offset unavoidable emissions.
Energy: Every new building at Infosys follows the industry
best standards and practices for energy efficiency. Improving
energy efficiency can not only lower utility bills but also reduce
greenhouse gas emissions significantly. Our two-pronged
strategy of constructing highly efficient new buildings and
operational excellence in existing buildings has significantly
minimized the energy intensity. Smart automation continues
to play a key role in remote operations management and build
resilience in the system. We strive to exceed expectations by
establishing new standards and introducing creative systems into
our structures, thus conserving energy.
The capital investment in energy conservation projects was
`3 crore in fiscal 2023.
The visit of the G20 delegation (Energy Transition Working
Group) to Infosys campus, Bengaluru to witness energy
conservation techniques deployed on the campus, is a testimony
to our advocacy efforts beyond our boundary, and positively
impacting global climate action.
Renewable energy: We have a total capacity of 60 MW of solar PV,
including rooftop and ground-mounted systems. We continue to
pursue green power purchase from third-party power producers
and engage with power distribution companies for enabling
green tariff. We also work with governments to enable favorable
policies for scaling up green power by corporates in India.
We have also embarked on a journey to source green power for
some of our leased international locations.
Green buildings: In fiscal 2023, our leased facility in Pune and our
buildings in Bengaluru, Chennai and Hyderabad were awarded
the Indian Green Building Council (IGBC) Platnium certification.
As part of workplace transformation, buildings with interior
retrofitting received IGBC’s Green Interiors rating, even though
they had already been certified as part of the campus green
certification process. We now have 46 projects at Infosys with the
highest level of green building certification, spanning a total area
of 28.9 million sq.ft.
Transformed workplace: As part of interior retrofits, several
buildings were transformed in fiscal 2023 to improve employee
experience and productivity in the new hybrid working
environment. Sustainability has been one of the main principles
in design, giving importance to materials selection and
equipment efficiency, among other aspects, so as to make our
workplaces employee friendly as well as environment friendly.
Water management: Reduce, recycle and reuse of water through
demand side measures and implementing efficient technology
has enabled freshwater conservation. The state-of-the-art
sewage treatment plants of tertiary treatment capabilities enable
zero discharge of wastewater from our campuses. We have
initiated lake rejuvenation projects near our campus, that will
enhance water availability in the surroundings, with additional
expected benefits such as improved health, reduced flooding
and enhance biodiversity.
Waste management: Infosys adopts the principles of Circular
Economy, based on Refuse, Reduce, Reuse, Recycle and
Repurpose approach. We seek to uphold our ambition of ‘zero
waste to landfill’ through active minimization combined with
technology investment in recycling and streamlining systems
and processes. TRUE certification for zero waste, aimed at
diversion of all non-hazardous solid waste from landfill is being
adopted by some of our campuses. We focused on diversion of
some of the identified waste going for incineration into co-
processing, which refers to the simultaneous recycling of mineral
materials and recovery of energy within one single industrial
process of cement production.
Carbon offsets: After reducing and avoiding emissions to the
maximum extent possible, there are unavoidable emissions
that need to be addressed through the carbon offset program.
Infosys continues to identify projects that have a high social
impact – improving health and livelihoods of rural families,
creating rural jobs, etc., and along the way, also generating
carbon offsets for the Company. Our unique offset program
is certified to the highest level (Gold Standard) in quality,
authenticity and transparency.
This year, we added new cookstove projects in Rajasthan,
and biogas projects in Maharashtra and Karnataka. While the
cookstove projects improve health of people in the households
through low-smoke, low-firewood use, the household biogas
units benefit the families by minimizing the fuel cost and utilizing
95
Infosys Integrated Annual Report 2022-23 Annexures to the Board's report
cattle manure. Our carbon offset program is spread across six
states in India, and has benefited 2,40,000 + rural families, and
created over 2,800 rural jobs.
Carbon neutral events: Infosys has envisioned to organize global
events to promote our best practices in carbon neutrality. All
measures are taken to promote environmental protection,
including the use of eco-friendly materials, no plastic, and
conservation of energy and water. A precise assessment
of the carbon emissions resulting from the event is done
and the emissions are balanced out by our carbon offset
initiatives. In fiscal 2023, six events organized by Infosys were
declared carbon neutral.
Infosys Mangaluru campus | From barren land to a verdant
campus: One of the most significant and proven steps
to tackle climate change is increasing the green cover
through tree plantation. Trees are effective in cleansing
the air, securing the soil and limiting erosion, resulting in
improved water management.
We created a two-volume book that outlines the process
of transforming a barren piece of land on the outskirts of
Mangaluru into a lush green campus with a diverse array of flora
and fauna. The book highlights the approach and methodology,
and the scientific way in which greening of the campus was
achieved on a large scale within a brief span of time. The book
is expected to be a repository of the endemic species of the
Western Ghats, for academicians and the scientific community.
The book demonstrates the transformation that is possible,
and intends to inspire corporations, developers, administration
and communities towards biodiversity preservation and
green transformation.
Health, safety and environment
The Health, Safety and Environmental Management System
(HSEMS) at Infosys reflects our commitment to protecting the
environment, providing an appropriate working environment,
and protecting the health and safety of personnel, including
employees, contractors and visitors. Infosys is ISO 14001:2015
and ISO 45001:2018 certified in line with our strategy. The
HSEMS takes cognizance of interested parties and focuses on
compliance with applicable legislations in the regions where we
operate. It 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: An enterprise that senses, feels and responds in
real-time – this was the theme of our transformation journey of
the past 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.
96
To enable this, our core backend infrastructure was transformed
to host modern applications, using the scalability of cloud,
security of on-premise infrastructure in a hybrid cloud
deployment using open source technologies with highly
scalable container orchestration solutions like Kubernetes for
microservices. Telemetry infrastructure using the ELK stack
provided enhanced real-time visibility and enabled proactive
error detection and correction.
Modern, hybrid, and secure workplace: Our hybrid workplace
ecosystem brings together technologies such as borderless
ODCs, virtual collaboration tools, and self-service applications
to provide our employees much-needed flexibility to work
from anywhere. Our robust IT management system minimizes
threats and prevents attacks, through a continuous cycle of
vulnerability assessment and remediation, to safeguard our data
and brand reputation.
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.
Energy-efficient IT infrastructure
We have adopted a multi-pronged strategy to make our
computer workload energy-efficient and environment-friendly.
Some of the measures implemented are:
Public cloud adoption: 68% of the internal IT applications have
been migrated to the public cloud. All our employees have been
enabled for cloud-based collaboration platform for messaging,
presence, video, and other requirements.
Data center modernization: A strategic initiative launched by
InfosysIT to modernize the data center IT landscape to make it
future-ready, continues to yield high rewards. Density-optimized
hyperscale platforms were deployed to enable high-density
server virtualization and consolidation across the enterprise.
Hyperscale platforms are open-driven infrastructure innovations
that enable cloud-scale agility and efficient resource pooling and
utilization. This initiative is expected to deliver power savings and
reduce the total cost of ownership for the organization.
InfosysIT has focused on investing in on Data Center
Infrastructure Management (DCIM) tools to get accurate visibility
across the entire data center IT and facility stack, which is the
foundation for optimization initiatives.
Enterprise storage: We provide around 1.8PB of 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 to cheaper, larger capacity storage,
resulting in data tiering and savings in terms of data center
footprint, power consumption, and cooling.
Cloud-native development environment: The open source-based
cloud-native development platform is built on Hyper Converged
Infrastructure (HCI) and compute which has helped reduce data
center footprint and power and cooling consumption.
Infosys Integrated Annual Report 2022-23 Awards and recognition – Information Systems
External award name
IDG CIO 100 Global for 2022
CII Tata Communications Centre for digital
transformation – CIO Excellence Awards
2022
Theme
Award sponsor (Company)
For digital business growth through technology
innovation
IDG / Foundry
For inspiring how IT leadership and stakeholders
reshape tech industry
CII Tata Communications
CII DX Award for 2022
For operational efficiency and digital experience
CII
Data Quest Digital Leader Awards
CORE Media CIO Crown Award for Digital
Transformation Pioneer in 2022
For ingenuity and unwavering dedication to
improving the customer experience
Data Quest
For being a Digital Transformation Pioneer
CORE Media
BitStream Mediaworks Pvt. Ltd 7th Innovative
CIO awards 2022
Innovative IT project
CIO Axis – BitStream Mediaworks Pvt. Ltd
CIOAXIS CXO INSIGHTS Award 2022
Best IT transformers using Data, AI and ML,
automation
CIO Axis – BitStream Mediaworks Pvt. Ltd
Research and development (R&D) expenditure – standalone
Foreign exchange earnings and outgo
Revenue expenditure
Capital expenditure
Total
R&D expenditure /
revenue (%)
2023
2022
(In ` crore)
639
529
16
12
655
541
0.5
0.5
Future plan of action
We will continue to collaborate with leading national and
international universities, product vendors and technology
startups. We are creating an ecosystem to co-create business
solutions on client-specific business issues.
Bengaluru
April 13, 2023
We have built an extensive direct marketing network around the
world, including North America, Europe and Asia-Pacific. These
offices are staffed with sales and marketing specialists who sell
our services to large international clients.
Activity in foreign currency – standalone
Earnings
Expenditure
Net foreign exchange
earnings (NFE)
NFE / earnings (%)
2023
2022
(In ` crore)
1,21,605
1,01,854
70,534
57,224
51,071
44,630
42.0
43.8
for and on behalf of the Board of Directors
Sd/-
Sd/-
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
97
Infosys Integrated Annual Report 2022-23 9
8
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, 2023, 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 13, 2023.
The policy is aimed at providing clear guidelines and procedures for
disclosing material information outside the Company in order to provide
accurate, timely and symmetric communications to our shareholders and the
financial markets. The policy was revised and adopted effective April 13, 2023.
This policy applies to disclosures of material events affecting Infosys and
its subsidiaries. This policy is in addition to the above-mentioned Infosys
Code on Fair Disclosures and Investor Relations. The policy was revised and
adopted effective April 14, 2021.
The policy deals with compensation clawback 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 March 17, 2023.
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
Infosys Integrated Annual Report 2022-23 Name of the policy
Brief description
Web link
Corporate Social
Responsibility Policy
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.
https://www.infosys.com/investors/corporate-
governance/Documents/corporate-social-
responsibility-policy.pdf
Policy on Material Subsidiaries
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 related party transactions of the Group. The policy
was revised and adopted effective April 13, 2023.
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, 2023.
https://www.infosys.com/investors/corporate-
governance/documents/enterprise-risk-
management-policy.pdf
9
9
Infosys Integrated Annual Report 2022-23 Statutory reports
Management’s discussion and analysis
Overview
Infosys is a leading provider of consulting, technology,
outsourcing and next-generation digital services,
enabling clients to create and execute strategies for their
digital transformation.
Our purpose is to amplify human potential and create the next
opportunity for people, business and communities. 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).
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.
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
management report section of the Integrated Annual Report.
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.
I.
Industry structure and developments
Technology is transforming businesses in every industry around
the world in a profound and fundamental way. In fiscal 2023, we
saw emerging technologies, like generative AI, 5G, Low Code
No Code, shape the future of industries. Responsible business
approaches, including embracing ESG, have gained traction.
We continued to witness businesses attempting to reimagine
their cost structures, increase business resilience and agility,
personalize experiences for customers and employees, and
launch new and disruptive products and services
For more information, refer to the Our business context section of
the Integrated Annual 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’ or ‘digital first‘ organizations. The journey to the digital
future requires not just an understanding of new technologies
and new ways of working, but a deep appreciation of existing
technology landscapes, business processes and practices. Our
strategy is to be a navigator for our clients as they ideate, plan
and execute on their journey to a digital future.
For details of our continued investments and outcomes of
our strategic initiatives, refer to the Strategy section of the
Integrated Annual Report.
Our strengths
We believe that we are well-positioned for the principal
competitive factors in our business. With over 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.
100
We have continued to invest in Infosys Cobalt™ – a set of
services, solutions and platforms for enterprises to accelerate
their cloud journey.
Infosys Equinox, our flagship digital commerce platform, 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.
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 fuelled 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 our customers.
Infosys Integrated Annual Report 2022-23 Our competition
We see intense competition in traditional services, a rapidly
changing marketplace and the emergence of new players in
niche technology areas.
Read more in Our business context section in the
Integrated Annual Report.
III. Financial condition
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 6,04,26,348 shares resulting
in a cash outflow of ₹9,300 crore (excluding transaction cost
and tax on buyback).
2. Other equity
The movement in retained earnings was on account of profit
earned during the year, payment of dividends and buyback of
equity. Decrease in securities premium is mainly due to buyback
of equity shares and an increase on account of the exercise of
stock options. The Group has made an irrevocable election
to present the subsequent changes in fair value of certain
instruments in other comprehensive income.
The Company has created a Capital Redemption Reserve equal to
the nominal value of the shares bought back as an appropriation
from the general reserve and retained earnings.
During the year, an amount has been transferred to the Special
Economic Zone Re-investment Reserve out of the profits of
eligible SEZ units. The reserve should be utilised 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, that has
been created out of the profits of eligible SEZ units.
3. Property, plant and equipment
Additions to gross block were mainly on computer equipment
and infrastructure.
4. Goodwill and other intangible assets
On a consolidated basis, carrying value of goodwill as on March
31, 2023 is ₹7,248 crore, which increased mainly on account of
additions to goodwill amounting to ₹630 crore for oddity and
BASE life science group. During the previous year, the carrying
value of goodwill was ₹6,195 crore.
On a consolidated basis, the carrying value of intangible assets
as on March 31, 2023 is ₹1,749 crore, whereas on March 31, 2022,
it was ₹1,707 crore. These primarily consist of intangible assets
acquired through business combinations amounting to ₹328
crore for the year ended March 31, 2023.
Refer to Note 2.4.2 of the Consolidated financial statements
for further details.
5. Financial assets
A. Investments
On a standalone level, during the year, we invested additionally
in our subsidiaries, for the purpose of acquisition of entities,
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 liquid mutual funds units, target
maturity-fund units, tax-free bonds, non-convertible debentures,
certificates of deposit, commercial paper, government
securities (G-secs) and quoted bonds issued by government
and quasi-government organizations. Certificates of deposit
and commercial papers represent marketable securities of
banks, NBFCs and eligible financial institutions for a specified
time period with high credit rating by domestic credit rating
agencies. G-secs are highly liquid and marketable instruments
issued across tenure, backed by the Government of India and
carries a sovereign credit. 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 (DSO) has reduced to 62 days in
the current year from 67 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.
D. Loans
We provide loans to subsidiaries as per business requirement.
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
101
Infosys Integrated Annual Report 2022-23 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 the defined benefit pension plan in certain
overseas jurisdictions, in accordance with local laws. These plans
are managed by third-party fund managers. We provide for
gratuity, a defined benefit retirement plan (“the Gratuity Plan”),
covering eligible employees in India. 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. We also operate 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 a
lumpsum payment as set out in rules of each fund and includes
death and disability benefits.
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 in India.
Management’s discussion and analysis
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. Unbilled increase is mainly attributable to complex
and integrated large deals. Withholding taxes and others
represent credits that can be availed against local taxes payable
in various countries. 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.
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 in the Special Economic Zone Re-
investment Reserve, deferred tax liability on intangibles from
business combination partially offset by deferred tax asset on
post-sales client support, allowances for trade receivables and
compensated absences.
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, Infosys Compaz and HIPUS acquisitions to purchase 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.
102
Infosys Integrated Annual Report 2022-23 IV. Results of our operations
The function-wise classification of the Standalone Statement of Profit and Loss is as follows:
Particulars
Revenue from operations
Cost of sales
Gross profit
Operating expenses
Selling and marketing expenses
General and administration expenses
Total operating expenses
Operating profit
Finance cost
Other income, net
Profit before tax
Tax expense
Profit for the year
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
(In ₹ crore)
Year ended March 31,
2023
%
2022
%
1,24,014
100.0
1,03,940
100.0
85,762
38,252
5,018
5,293
10,311
27,941
157
3,859
31,643
8,375
23,268
69.2
30.8
4.0
4.3
8.3
22.5
0.1
3.1
25.5
6.7
18.8
69,629
34,311
67.0
33.0
4,125
4,787
8,912
4.0
4.6
8.6
25,399
24.4
128
3,224
28,495
7,260
21,235
0.1
3.1
27.4
7.0
20.4
(In ₹ crore)
Year ended March 31,
2023
1,46,767
1,02,353
44,414
6,249
7,260
13,509
30,905
284
2,701
33,322
9,214
24,108
13
24,095
%
100.0
69.7
30.3
4.3
4.9
9.2
21.1
0.2
1.8
22.7
6.3
16.4
0.0
16.4
2022
%
1,21,641
100.0
81,998
39,643
5,156
6,472
11,628
28,015
200
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
103
Infosys Integrated Annual Report 2022-23 Management’s discussion and analysis
1. Revenue
The growth in our revenues in fiscal 2023 from fiscal 2022 is as follows:
Particulars
Revenue
Standalone
Consolidated
2023
1,24,014
2022
% change
1,03,940
19.3
2023
1,46,767
2022
% change
1,21,641
20.7
(In ₹ crore)
The increase in revenues was primarily attributable to an increase in digital revenues, large deal wins and volume increases across
most of the segments.
The revenues from digital and core services for fiscals 2023 and 2022 are as follows:
Particulars
Digital
Core
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 2023 is US$ 18,212 million,
a growth of 11.7%. Our revenues for fiscal 2023 in constant
currency grew by 15.4%.
We added 458 new customers (gross) during fiscal 2023 as
compared to 451 new customers (gross) during fiscal 2022.
On a consolidated basis, for the year ended March 31, 2023,
approximately 97.4% were export revenues whereas 2.6% were
domestic revenues, while for the year ended March 31, 2022,
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.
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 60.7% in fiscal 2022 to 61.6% in fiscal 2023 on a
standalone basis and from 57.6% in fiscal 2022 to 58.0% in fiscal
2023 on a consolidated basis. The cost of efforts has increased
mainly on account of compensation increase, increase in
headcount and higher onsite mix partially offset by decrease in
sub-contractors cost.
Third-party items bought for service delivery to clients include
software and hardware which are integral to our overall service
delivery to clients.
(In ₹ crore)
Consolidated
2023
91,272
55,495
2022
% change
69,404
52,237
31.5
6.2
Selling and marketing expenses
The selling and marketing expenses on standalone basis have
remained unchanged as a percentage of revenue during fiscal
2023 at 4.0%, and have increased on consolidated basis during
fiscal 2023 to 4.3% from 4.2% in fiscal 2022, mainly on account of
increase in branding and marketing expenses and travelling costs
partially offset by decrease in employee benefit costs.
General and administration expenses
The general and administration expenses on standalone and
consolidated basis have reduced as a percentage of revenue
during fiscal 2023 to 4.3% from 4.6% in fiscal 2022, and 4.9%
during fiscal 2023 from 5.3% in fiscal 2022, respectively,
mainly on account of a decrease in employee benefit costs
and consulting and professional expenses partially offset by
increase in travel 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 fiscal 2023, the Company
received ₹1,463 crore of dividend from our subsidiary, which is
reflected in the Standalone financial statements.
Interest income in fiscal 2023 has increased as compared to fiscal
2022 primarily due to a increase in yield on investments. We use
foreign exchange forward and options contracts to hedge our
exposure against movements in foreign exchange rates. Finance
cost is on account of leases. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates in the
country of domicile of these leases.
104
Infosys Integrated Annual Report 2022-23 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, 2023, and March 31, 2022 is 34.94%.
Particulars
Income tax expense (In ₹ crore)
Effective tax rate (In %)
Standalone
Consolidated
2023
8,375
26.5
2022
7,260
25.5
2023
9,214
27.7
2022
7,964
26.4
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,
filing of tax return and completion of assessments, across
various jurisdictions.
Business segments – Consolidated
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.
Particulars
Financial
Services
Retail
Communication Energy, Utilities,
Manufacturing Hi-Tech
Resources and
Services
(In ₹ crore)
Life
Sciences
All other
segments
Total
Segmental revenues
2023
2022
Growth (%)
43,763
21,204
38,902
17,734
12.5
19.6
Segmental operating income
2023
2022
Growth (%)
10,843
10,314
5.1
6,396
6,130
4.3
Segmental operating margin (%)
2023
2022
24.8
26.5
30.2
34.6
18,086
15,182
19.1
3,759
3,372
11.5
20.8
22.2
The following graph sets forth our revenue by geography:
(In ₹ crore)
75,058 (61.7%)
12,869 (10.6%)
3,585 (2.9%)
30,129 (24.8%)
Total
1,46,767
Total
1,21,641
2023
2022
90,724 (61.8%)
14,507 (9.9%)
3,861 (2.6%)
37,675 (25.7%)
Growth in %
North America - 20.9
Europe - 25.0
India - 7.7
Rest of the World -12.7
Total - 20.7
Overall segment profitability has decreased primarily on account
of decrease in utilization, increase in employee compensation
and higher spend on third-party software and travel partially
offset by benefit on account of cost optimization initiatives and
currency fluctuations.
18,539
14,484
28.0
5,155
4,225
22.0
27.8
29.2
19,035
13,336
42.7
3,113
2,408
29.3
16.4
18.1
11,867
10,085
4,188
1,46,767
10,036
18.2
2,959
2,495
18.6
24.9
24.9
8,517
18.4
2,566
2,380
7.8
25.4
27.9
3,450
1,21,641
21.4
20.7
339
167
103.0
35,130
31,491
11.6
8.1
4.8
23.9
25.9
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. Our operating cash flows have
decreased in fiscal 2023 as compared to fiscal 2022 mainly
on account of outflow in working capital and higher
income tax payments.
Consolidated cash and investments of ₹31,286 crore
comprise cash and cash equivalents, current and non-current
investments excluding investments in unquoted equity and
preference shares and others.
105
Infosys Integrated Annual Report 2022-23 Management’s discussion and analysis
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.
7. Related party transactions
These have been discussed in detail in Note 2.24 to the
Standalone financial statements in this Integrated Annual Report.
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 in this
Integrated Annual 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.
The Company has identified the following ratios as key financial
ratios:
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 (%)
2023
NA
NA
–
2022
NA
NA
–
2023
4.0
24.8
62
2022
6.6
36.3
67
22.2
30.1
24.9
31.7
19.3
22.5
18.8
20.9
24.4
20.4
20.7
21.1
16.4
21.1
23.0
18.2
Basic EPS (`)
55.48
50.27
57.63
52.52
(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
2022 to fiscal 2023
Revenue growth, operating margin, net profit margin as
well as change in basic EPS have been explained in the
relevant sections above.
•
The details of return on net worth at standalone and
consolidated levels are as follows:
Particulars
Standalone
Consolidated
2023
2022
2023
2022
Return on net worth
(%)
34.0
30.2
32.0
29.1
106
Net profit has increased from ₹22,110 crore to ₹24,095 crore
on a consolidated basis and from ₹21,235 crore to ₹23,268
crore on a standalone basis. Average net worth has not
increased in line with increase in net profit on account of
share buyback and dividend.
• Market capitalization to revenue ratio is computed as market
capitalization as on March 31st of the respective years by
revenue. The movement in this ratio is due to change in share
price as at the end of March 2023 and March 2022 and due to
buyback of equity shares.
Price earnings ratio is computed as market share price as on
March 31st of the respective years by earnings per share. The
movement in this ratio is due to change in share price as at
the end of March 2023 and March 2022.
•
• Cash and investments have decreased due to shareholder
payouts on account of buyback and dividend in line with our
Capital allocation policy.
V. Outlook, risks and concerns
This section lists forward-looking statements that involve risks
and uncertainties. Our actual results could differ materially
from those anticipated in these statements as a result of certain
factors. Our outlook, risks and concerns are as follows:
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
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 is dependent on a limited
number of our clients, and the loss of any one of our major
clients could significantly impact our business.
Infosys Integrated Annual Report 2022-23 •
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.
• Outbreaks of contagious diseases, viruses or pandemics,
such as the COVID-19 pandemic, could disrupt our business,
financial condition, and results of operations.
•
• 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 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 and the hiring of employees and sub-
contractors either outside or in India may prevent us from
sustaining some of our competitive advantage and may
reduce our profits.
• 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 changes in 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 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.
• Our inability to execute contracts and / or amendments with
clients on a timely basis can impact our revenues and profits,
causing fluctuations in our reported results.
VI. Risks related to our operations
• Our transition to a hybrid working model may expose us to
various risks.
• Our reputation could be at risk and we may be liable to our
clients or to regulators for damages caused by inadvertent
disclosure of confidential information and sensitive data.
• Our reputation could be at risk and we may be liable to our
clients for damages caused by cybersecurity incidents.
• Our reputation may be impacted, and we may incur financial
liabilities if privacy breaches and incidents under General
Data Protection Regulation (GDPR) adopted by the EU or
other data privacy regulations across the globe are attributed
to us or if we are not able to take necessary steps to report
such breaches and incidents to regulators and data subjects,
wherever applicable, within the stipulated time. Further, any
claim from our clients for losses suffered by them due to
privacy breaches caused by our employees may impact us
financially and affect our reputation.
• We may be the subject of litigation which, if adversely
determined, could harm our business and impact reputation,
growth, profitability, and results of operations.
• 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 man-made 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, reputation and
profitability.
107
Infosys Integrated Annual Report 2022-23 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
At Infosys, we believe in amplifying human potential and
creating the next opportunity for people, businesses, and
communities. For over four decades, we have been a people
company that understands the immense potential of technology.
As we look to the future, we recognize that the world is changing,
and we need to acknowledge our extraordinary potential to be a
force for good. Our people are at the center of this vision, and it is
our constant endeavor to make Infosys a place where people can
be their best selves.
Our purpose is to inspire our people with meaningful work and
passionate teams, enabling them to find purpose and make an
indelible impact. We believe that talent transformation is an
important focus area, and it begins with sensing employee needs
and responding with a value proposition that delivers meaning,
purpose, and value for them. We are committed to building
synergy between how we differentiate ourselves as a company
and deliver on the expectations of our employees.
Return to office and hybrid model of work
It has been over two years since we at Infosys transitioned to
hybrid work, prioritizing safety and flexibility. This shift has
enabled us to be more responsive to customer demands, more
resilient to disruptions, and more productive in our work,
characterized by empathy and flexibility.
Today, our offices have integrated technology into their design to
deliver an experience far beyond the traditional way of working.
At Infosys, our objective is to build and retain social capital
among employees to enhance collaboration and innovation
in a hybrid workplace. In addition, working from the office in a
hybrid model promotes ideation and self-learning, which fosters
self-development. Our approach to returning to work has been
balanced, with a focus on flexibility, employee safety and well-
being, and client commitments.
Management’s discussion and analysis
• 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 Environmental, Social and Governance (ESG)
2030 vision.
• Negative media coverage and public scrutiny may divert
the time and attention of our Board and Management and
adversely affect our reputation and the prices of our equity
shares and American Depositary Shares (ADSs).
VII. Risks related to legislation and regulatory
compliance
• We have experienced, and may continue to experience, a
shortage in the supply of IT workers, which could accentuate
due to enactment of restrictive legislations and regulations
on immigration in certain geographies which would
adversely affect our business.
•
• 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 may 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 adversely affect our profitability.
• Changes in the policies of the Government of India or
political instability may adversely affect economic conditions
in India generally, which could impact our business and
prospects.
• Attempts to fully address concerns of activist shareholders
may divert the time and attention of our Management and
Board of Directors and may impact the prices of our equity
shares and ADSs.
• Our international expansion plans subject us to risks inherent
to doing business internationally.
• Our ability to acquire companies organized outside India
•
may depend on the approval of the RBI and 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.
For more details on risk factors listed above and risks related to
ADSs, refer to our 20-F filing available at https://www.infosys.
com/investors/reports-filings/annual-report/annual-reports.html.
108
Infosys Integrated Annual Report 2022-23 Distinct-phased approach adopted in transitioning to hybrid work culture :
We adopted a multi-pronged approach to enable the transformational hybrid work model – under three the pillars of work, workspace
and workforce. The remote-to-hybrid transition was facilitated centrally as well as at the individual unit and Development Center (DC)
levels. Transition was enabled at the geo level aligning to the regional norms and policies of individual countries.
Workplace
Campus | Collaboration | Distributed
Campus facilities aligned to hybrid
Collaboration spaces in DCs
Distributed workplace
Hybrid
Workforce
Office | Flexible | Remote
Make work on campus attractive and convenient
Flexibility and voice of employees
Engaging new joiners
Digital experience
Purpose | Wellness | Experience
Articulate Purpose and EVP through managers and leaders
Physical, emotional and digital wellness
Human experience to build culture for the future
As we progress on a phased return to office, encouraging
employees to work on a hybrid model, we are focused on
the following aspects:
Communication and change management, DC operations and
logistics, employee support measures, employee DC transfer and
satellite offices, and client requirements.
Supporting employees in transition to hybrid work:
Infosys has taken a number of steps to support the transition
to a hybrid work model. These include surveying employees
to understand their preferences, developing a location-level
microsite, providing accommodation support, relaxing COVID
restrictions, creating user-friendly dashboards to track the
adoption of the hybrid work model, conducting in-person
freshers training , lateral induction, developing InfyMe Hoteling
application, conducting employee well-being programs, opening
six satellite offices, establishing a 24*7 helpdesk, launching a
Talent Anywhere model, enhancing the employee experience,
customizing the hybrid model to provide more flexibility to
employees, aligning systems, processes, and policies, supporting
employees and families for the booster dose vaccination,
complying with the local laws and regulations, establishing
effective employee communication and collaboration,
and enabling managers and leaders across locations to
successfully manage hybrid work.
Initiatives to enhance our Employee Value Proposition
Our Employee Value Proposition aims to inspire and enable
our employees to find purpose and make an indelible impact
through meaningful work and passionate teams; ensure that
our employees continuously learn and grow in their careers
and shape our collective future; and create opportunities for
every employee to navigate further, powered by our culture and
partnered by other employees with shared aspirations.
Employee careers and learning avenues:
•
•
Lex: Our in-house learning platform continues to be a
significant driver of talent development at Infosys. With
remote work firmly established, Lex has evolved to engage
employees through hybrid learning models.
Internal Marketplace: With reskilling gaining momentum,
more employees are acquiring new skills and capabilities.
Internal Marketplace serves as a vehicle to match employees
with opportunities to provide job rotation in work areas of
their choice and capability.
• Bridge: helps employees to develop new skills and shift to
new careers that typically require different qualifications.
109
Infosys Integrated Annual Report 2022-23 Management’s discussion and analysis
• Accelerate: This helps employees gain exposure to various
roles and practical experience with new skills through
involvement in short-term internal projects. Powered by
an intelligent platform, it allows job creators to publish
independent job modules (with client approvals) that their
job-seeking colleagues can volunteer to execute. Both job
creators and seekers are incentivized for work well done.
Learning and Career: This is a one-stop-portal for all
learning and career-related needs of employees with smart
integration with other Infosys internal systems like Lex to
guide employees on their learning journeys.
•
• Performance management: The framework focuses on
deep engagement of key talent through regular
conversations between managers and teams through check-
ins facilitated by a contemporary tool. It also strengthens
focus on development through career conversations and
Integrated Development Plans (IDPs).
• Faster and predictable careers: We embarked on a journey
to enable business with a view on employees eligible for
promotion / progression in the next few quarters. This helped
business in engaging with key talent well ahead in their
career journey and ensured that they experience accelerated
growth within the organization.
• Digital Specialist: This has emerged as an aspirational
track for high performers who want to work with niche
technologies in digital transformation projects. The career
track enables employees to see capability-driven growth that
is not dependent on tenure and augments a talent pool that
is continuously learning and generating value for us and our
clients.
• Digital Quotient (DQ): This helps employees keep track of
their digital skills. Those with a higher Digital Quotient have
greater access to new opportunities and interesting projects.
• Platinum Club: A niche experience created for our top
performers, it is an exclusive group of highly skilled and high
performing individuals. The program’s structure ensures
diverse career experiences for those who qualify.
• Aspiration management: iAIM was launched as the new
framework for capturing employee aspirations fiscal 2023.
The framework is centred around four key principles of
Connect, Converse, Converge and Close.
• Manager and leadership development: through key
structured interventions as part of our Global Delivery Talent
effectiveness program has contributed tremendously to
the key learning and enablement of our leaders in Global
Delivery. A basket of offerings has been designed that
brings together external sessions, internal leader facetime,
mentoring, cross-skilling, best sharing of practices and
collaboration across our various business segments and units.
• SALESFLEX: The capability of our people and systems, which
is the backbone of our organization, has been completely
re-imagined and revamped through our multi-pronged
People Transformation Charter named SALESFLEX. Some
of the key initiatives under SALESFLEX are HORIZON, a
sales-focused capability building intervention designed
exclusively for high-potential sales leaders, SYNERGY, a four-
week onboarding program for new sales employees; I AM
INFINITE, an exclusive, leadership initiative in partnership
with Stanford Business School and Cambridge University
110
providing a curated and customized experiential learning
for the participants; ASSURED, a sales leadership program in
partnership with Stanford is an exclusive, leadership initiative
for leaders to strengthen their financial acumen; INSYNC
VIRTUAL COHORT, a three-week training module launched
for sales leaders, in partnership with ETA, that covers
instructor-led webinars, self-learning courses and expert-led
webinars; SKILLUP SALES CERTIFICATIONS, customized sales
certifications from Cornell University, customized to enable
our salesforce and prepare them for this next spurt of growth,
and EMPOWER, INCLUSION HABIT JOURNEY, an external-led
bespoke program with immersive experience for leaders
driving the change.
Employee experience
We strive to create a world-class employee experience by
designing consistent and best-in-class policies, processes,
programs, and systems, by focusing on creating ‘Experience by
Design’. We collect employee feedback to improve our offerings
and create positive experiences. We are committed to creating
memorable moments that matter and using technology to
drive the right behavior among managers and teams. A few
initiatives in fiscal 2023:
• Digitization: We have strengthened our people practices
by using technology and automation to improve workforce
efficiency, engagement, transformation, and innovation
• People analytics: Analytics played a critical role in planning
interventions during the last financial year. Advanced
modeling tools, along with employee Pulse analytics and
manager dashboards, helped us improve our talent strategy
and retention. We also leveraged analytics effectively in the
move to hybrid work.
InTap: is our smart sourcing and interview management
application to attract and manage candidates and provide
best-in-class experience along with an efficient hiring
process.
Launchpad: We expanded the coverage of Launchpad to 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.
Infosys Meridian: enables a remote-first workplace that
mirrors the offline experience with its event management
platform and breakout sessions capabilities.
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 hybrid
working model.
iEngage: 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 engagement events, invite employees and
track actions identified during such events.
•
•
•
•
•
Infosys Integrated Annual Report 2022-23 •
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 to
reduce manual work of our teams.
• Employee discount programs: Infosys’ employee-centric
initiatives, InfyGold+, offer exclusive discounts and deals on
various products and services, providing a valuable perk to
our employees and contributing to the Company’s efforts to
attract and retain top talent.
Rewards and recognition
•
•
Infosys RISE (Real. Instant. Specific. Excite): underlines the
importance of a single platform to meet all the company’s
reward and recognition needs. It allows managers to tailor
incentives that align with their team member’s unique skills
and personal circumstances. Accolades are recorded over
time to provide a comprehensive view of an employee’s
rewards while showcasing genuinely transformational
progress in recognition and value.
Infosys Stripes: A one-stop, gamified, point-based system
that tracks and rewards employee achievements across
functions and the organization through Infy Coins, Infy
Points, badges and certificates. It allows employees to see
their accomplishments, redeem their rewards and share their
achievements with colleagues.
• Early Career and Rewards (ECR): This program for campus
hires at Infosys aims to provide visibility on career and pay
growth in the Company over three years since joining. The
program allows employees to see a milestone-based career
progression as well as pay increments during the program
duration and then move to a career stream of their choice.
• Sales Excellence and Stellar Awards: Sales Excellence
Awards provides a platform to recognize and reward the
best sales talent. Stellar Awards was instituted as a quarterly
recognition platform across each unit that will recognize
individuals who have gone the extra mile and made
significant contributions during the quarter.
• Awards for Excellence (AFE): The AFE remains our largest
rewards and recognition platform for employees. This year
marked its 28th anniversary, and we received about 1,000
nominations across geographies in over 20 categories.
Employee care and connect
• Employee engagement: We have a robust 5C (Connect,
Collaborate, Celebrate, Care, Culture) employee engagement
framework that drives us to create best-in-class employee
experiences and supports our people to stay motivated and
always deliver their best.
• 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 behaviour
code that encourages them to adhere to seven fundamental
principles that shape a good manager at Infosys.
Infosys Great Manager Program: Our flagship manager
enablement program, The Infosys Great Manager Program
guides managers through a structured learning path to
build and strengthen four key competencies to build future
readiness – business acumen, digital mindset, leading people
and operational excellence. The program is self-paced and
is entirely in the e-learning mode to achieve a wider and
broader reach among managers.
• Employee well-being: At Infosys, over the years, employee
well-being has developed into a more evolved and
substantial model with the help of our program HALE.
(Health Assessment and Lifestyle Enrichment). Our wellness
programs stand strong on the four pillars of physical well-
being, social well-being, emotional well-being, and safety.
• Power Teams include short and specific team intervention
modules with project as the nucleus. Apart from being an
excellent way to engage with employees, Power Teams aims
to leverage the strengths of everyone to maximize project
output.
Creating a positive work environment
• Culture and values: The organization culture, driven by our
core values (C-LIFE), is one of the main levers that drive our
business. At Infosys, we work to build and sustain an inclusive,
non-discriminatory and equal opportunity workplace. Our
ESG ambition aims to strengthening diversity, equity and
inclusion in the Company and achieving 45% representation
for women in our workforce by 2030. Our workplace policies
and investments focus on learning and development, and
specific interventions for women to navigating their personal
and professional lives.
– Orbit Next: A year-long program for our women managers
in India. It aims at building capabilities through reskilling
and honing leadership skills to prepare them for next-level
roles.
– Restart with Infosys: A unique intervention we
relaunched to hire women after career breaks. The
program offers flexible working formats, training, skill
building, and intense mentoring to give women the
support and confidence they need to return to their
careers.
– Women in Tech (TechCohere): This year, over 50 sessions
and panel discussions were conducted by women
technologists. 11 white papers and 37 POVs authored by
women technologists were published.
– Employee Resource Groups (ERGs): To strengthen
inclusion and belonging, we now have more than 12,000
employees in various ERGs.
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Infosys Integrated Annual Report 2022-23 Management’s discussion and analysis
Awards:
ASHI
•
Infosys was recognized for the second consecutive year for
Excellence in HR Analytics at SHRM HR Excellence Awards
• HALE won the Best Health and Wellness Program 2023 by
•
•
•
India Today Group
Iam the Future Women in Leadership Program by the
Infosys Leadership Institute (ILI) won the Women Icons Asia
D&I Champions Award in the category of Advancement
of Women in 2022. This award celebrates and honors the
accomplishments of the organization that has programs and
initiatives to advance women in their workplace.
IamtheFuture Women in Leadership Program by ILI won the
Brandon Hall Gold Award for DEI in 2022. This was awarded to
the program in recognition of being an excellent program in
advancing development of women in leadership roles.
ILI won the Chief Learning Organization’s Learning Elite Silver
Organization Award in 2022, with one of the key contributors
of this recognition being the impact of women in leadership
through the IamtheFuture program.
NAM awards and recognition:
• Diversity Inc. Top 50 Companies for Diversity placed Infosys
as “Noteworthy” Company for Diversity in 2021 and 2022.
Infosys scored 100% on the Corporate Equality Index Score
(CEI) in 2022 for LGBTQ+ inclusion – up from 95% in 2021.
•
Resolution hubs
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 yet ensuring timely action
and closure. A detailed investigation process ensures fairness
for all involved, with an opportunity to present facts and
any material evidence.
HEAR
Infosys has a robust grievance redressal forum called HEAR
(Hearing Employees And Resolving) fostering healthy employee
relations and a positive work environment by giving our
employees a neutral platform ‘to be heard’ and in building the
‘speak up culture’. An employee can raise a complaint on the
HEAR webapp or InfyMe mobile application or write to
HEAR@infosys.com. HEAR addresses employee concerns in a
structured and layered manner with appellate forums for any
appeals. All employees have access to the grievance redressal
process. We also conduct data analytics and studies to arrive
at the best possible preventive mechanisms. A summary and
the trends of workplace grievances are presented to the Audit
Committee of the Board every quarter.
The Company’s assurance to its employees towards providing
a harassment-free workplace is reflected in our key initiative,
ASHI (Anti-Sexual Harassment Initiative). As per the Act in India,
the Company has constituted Internal Committees (IC) in all the
development centers of the Company in India, for redressal of
sexual harassment matters reported by women employees. We
also have a strong governance mechanism in the form of GRB
(Grievance Redressal Body), to define, interpret and implement
the ASHI initiative and is accountable for administering the
policy centrally. GRB consists of external members, internal
senior members, and the Investigative Council. Here, we follow
a gender-neutral approach in redressal of all such complaints.
Upon receiving a sexual harassment complaint, an immediate
acknowledgment is sent to the complainant and the complainant
is contacted within 24 hours, before it is taken up for a formal
redressal process in line with the POSH Act and the Company’s
policy on anti-harassment. We have stringent internal timelines
of 45 days for closure of such concerns. The reports on ASHI
grievances can be shared to GRB@infosys.com and India
employees can log reports on the ASHI webapp or InfyMe
mobile application. Complaints received are classified and
appropriate disciplinary action is taken ranging from a warning
to termination of employment, as the case may be.
Extending the initiative to contract staff
Our commitment to a positive and safe working environment is
not restricted only to our employees, but also third parties, who
provide services in our campuses. We conduct refresher sessions
for such third-party employees to reinforce the message. These
sessions are covered in nine vernacular languages currently.
Emergency / safety cards with important contact numbers
are also handed over to all Infosys employees and employees
of such third parties.
Whistleblower Policy
We framed the Whistleblower Policy to enable stakeholders
to raise concerns regarding any potential violations,
involving financial irregularities / breach of Infosys’ policies
or applicable laws – easily and without any fear of retaliation.
The complaints received under the ambit of this policy are
reviewed independently, while ensuring anonymity and
confidentiality of the reporting.
Human rights
Infosys is a signatory to the UNGC and supports the protection
and elevation of human rights in accordance with the UN
Universal Declaration of Human Rights, the UN Guiding Principles
on Business and Human Rights, and the International Labor
Organization’s Declaration on Fundamental Principles and Rights
at Work (the ILO Declaration). Our Human Rights Statement
provides a broad framework to ensure that all employees are
treated with respect and dignity and ensure that we do not
condone human rights violations or abuses. Our Supplier Code of
Conduct helps us manage and address this important aspect of
sustainable business in our supply chains.
112
Infosys Integrated Annual Report 2022-23 Our salient human rights issues are:
1. Workplace diversity: A key tenet of the Code of Conduct
and Ethics is respecting each other through creating an equal
opportunity workplace, ensuring equal pay for equal work,
free of discrimination and harassment.
2. Positive work environment (Anti discrimination &
harassment): The organization envisages an open-door
policy. This is achieved through a well-established and robust
grievance resolution mechanism comprising resolution hubs.
3. Freedom of association: 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.
4. Health and safety: As a prerequisite for conducting business
responsibly. Ozone, Infosys’ Health, Safety and Environmental
Management System (HSEMS), has evolved into a robust
management system guided by requirements from multiple
stakeholders, including clients, internal customers, vendor
partners, law enforcement and regulatory bodies, and the
communities in which we operate.
5. Data privacy: With the Data Privacy Office (DPO) directly
reporting to the Board, Infosys ensures there is no conflict of
interest in the DPO playing an effective role to ensure privacy
of our employees, candidates, visitors, customers, and other
stakeholders, according to applicable data privacy regulations
across the globe, including but not limited to GDPR, CCPA,
LGPD, both as a data controller and processor.
6. Sustainable development: In 2020, we launched our ESG
Vision 2030 to shape and share solutions that serve the
development of businesses and communities.
Recruitment
As of March 31, 2023, the Group employed 3,43,234 employees,
of which 3,24,816 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 built robust relationships with
top institutions in the country and recruit students who have
consistently shown high levels of achievement. We have
continued upscaling our InfyTQ platform, which brings the best
of our Mysuru training to the hands of the learners across the
country. This has sustained to amplify the learning experience
of students who also undergo assessments to get the coveted
Infosys Certification. We also have been globally recognized for
our innovation in recruitment for our HackWithInfy, an online
coding contest, which also helps us attract the best of coders
into our organization.
We also recruit students from campuses outside India, including
but not limited to the US, UK, Australia, Singapore, Japan,
Germany, Canada, Mexico, Mauritius 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. We have continued to
conduct interviews virtually across the globe and the team
also enhanced the in-house applicant tracking system, which is
currently being used for hiring in India and China.
During fiscal 2023, we received 53,42,299 employment
applications, interviewed 3,89,183 applicants and extended
offers of employment to 1,14,374 applicants. These statistics do
not include our subsidiaries. We added 29,219 new employees,
net of attrition, during fiscal 2023.
Education, training and assessment (ETA)
Infosys continues to make investments in developing human
potential for the organization, and the world at large. The
Foundation Training Program, anchored across India, Mexico,
the US, the UK, Canada, Germany, Australia, Singapore, and
Japan, continues to enable newly onboarded entry-level hires
to transform into corporate professionals. Comprising nearly
50 technology streams, the curriculum has kept pace with the
dynamic business requirements and the preferred pedagogical
approach of the current generation of talent. The curriculum
continues to be current as courses on generative AI and prompt
engineering have been introduced into the foundation program
to introduce the freshers to the latest technologies. During
the COVID pandemic, the foundation training was conducted
virtually, with trainings being conducted in online mode.
However, keeping pace with the times, the training is back to in-
person classroom training.
Our Continuous Education Program is aimed at reskilling /
upskilling our existing employees with the twin objectives
of increasing fulfillment of skilled talents in client projects
and enriching the expertise of our global workforce in next-
generation digital technologies and methodologies. We provide
online self-learning, instructor-led virtual training opportunities
along with in-person classroom training opportunities to our
employees. We offer Bridge programs that help employees
with training and internship opportunities to switch
to a new career field.
Lex, our in-house learning platform, offers over 14,800 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
50,000 employees use Lex on weekdays with an average learning
time of about 35-40 minutes, and 12,000 employees use Lex on
weekends with an average learning time of about 45-50 minutes.
The learning efforts of our employees helped us get laudable
external accolades from Brandon Hall, ATD Best, Training
Apex and NASSCOM who recognized Education, Training and
Assessment (ETA) as the Cloud Innovator of the Year.
Infosys Wingspan, our configurable talent transformation
platform for clients, is being used by several global organizations.
Infosys Wingspan has also been leveraged for the ESG initiative,
Infosys Springboard. In alignment with ESG Vision 2030, Infosys
Springboard aims to empower over 10 million people with
digital and life skills by 2025. This program is led by a dedicated
team of experts collaborating globally with curriculum partners,
non-profits, and a global network of leading educational
institutions. About 12,000+ learning courses are available
and about 5.3 million learners across India have registered on
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Infosys Integrated Annual Report 2022-23 Management’s discussion and analysis
Infosys Springboard. The platform is available in English and all
major Indian regional languages, including Urdu and Sanskrit.
The Infosys Springboard team is working with state education
departments in 10 states, one of which has leveraged this to
enable more than one lakh teachers in the regional language.
VIII. Other details
1. Quality
The Quality function at Infosys, in line with the 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 organization-wide agile
transformation to scale our capabilities for agile digital in tune
with the Company strategy, and we have been rated by HfS as
No.1 among all agile service providers.
Today, clients are striving to achieve business value at speed
from their digital transformations. A key requirement for this is to
adopt a product-centric approach, capabilities and mindset. Last
year, we launched our Product Centric Value Delivery approach
to help clients do exactly that, through a holistic transformation
in the ways of working. The Quality team also consulted with
several large clients and helped them drive their agile and
DevOps-driven transformation, shift from project to product
way of working and overall workplace transformation. 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 created a
holistic automation maturity model to help navigate projects
towards increasing automation levels, from point tools towards
cognitive and autonomous operations.
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.
Infosys is the first IT company to comply with, and get assessed at
the enterprise level on SSAE18-SOC 3 report attestation. Infosys
continued to comply with and get assessed at the 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.
2. Infosys Center for Emerging Technology Solutions (iCETS)
114
Infosys Integrated Annual Report 2022-23 iCETS is the emerging technology solution incubation partner for
Infosys’ clients and units. It provides next-generation platforms
and innovation-as-a-service to help 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 (CoEs), such as Generative AI, Privacy & Accessibility,
Cybersecurity, Software Engineering, Data Management,
Quantum Computing, Metaverse, Hyperscalers and so on.
These centers focus on building capabilities, developing
thought leadership, and offering early client validation via
Living Labs, IP development, including building of platforms,
driving a significant part of innovation for our clients and
monetization for Infosys.
One of the key CoEs Infosys unveiled in the past few months
is the generative AI center. Generative AI is an emerging
technology space that is likely to transform wide sections of
business and technology applications. Given the significant
impact it is expected to have, Infosys has been incubating
capabilities and IP around Generative Pre-trained Transformers
(GPTs). In this context, we are collaborating with the hyperscalers
like Google, Microsoft, and AWS, as well as working with open-
source products, to experiment on transformations across code,
text, images, videos, voice, and avatars. We have developed
generative AI workbenches, sandboxes and applications across
multiple domains. iCETS is also helping drive Infosys to become
an AI-first organization, with the adoption of generative AI
capabilities to transform the Infosys technology landscape.
We plan to achieve this by building small transformer models,
trained on Infosys data, to drive contextual solutions. iCETS is
leveraging its learning to ensure that the clients benefit from it
while creating their generative AI strategy and incubation plans.
Among numerous client experimentations, we are working
with leading global banks, fashion retailers, and insurance
providers, among others.
iCETS enables enterprises to realize their Live Enterprise vision
by developing and deploying next-generation offerings, such
as LEAP, Cortex, DigiTran, iEDPS, etc. iCETS is also incubating
several domain platforms like the Energy-as-a-Service (EaaS) in
collaboration with our energy unit. iCETS platforms are designed
to be Platform-as-a-Service (PaaS) offerings with IP / patent-
led differentiation and now have AI-first capabilities built in to
differentiated Infosys services while accelerating innovations
for Infosys clients.
Infosys Living Labs brings the entire innovation ecosystem
together to help clients meet their innovation-at-scale needs
on multiple dimensions. Here, iCETS proactively expands
the 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 Horizon 3
technologies and business trends and assist our clients to foresee
disruptions with ‘Listening-Post-as-a-Service’ (LPaaS).
iCETS’ evolving partner ecosystem, including startups,
universities and hyperscalers, plays a critical role in the increased
velocity of ideas and solutions for their clients. We now approach
clients with joint living labs, for example, AWS-Infosys living labs
and Google-Infosys living labs.
To bring outside-in innovation to clients, the Infosys Innovation
Network (IIN) is constantly building well-orchestrated
partnerships with a curated list of startups, universities, and
hyperscalers. These partnerships strive to bring the best of
emerging-technology innovations from across the globe to
Infosys clients. 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 the Infosys network.
Over the past 24 months, we have engaged with numerous
startups, universities and hyperscalers across geographies such
as the US, Finland, Israel, and India, collaborating in spaces
like AI, fintech, cloud, cybersecurity, InsurTech, HealthTech,
and more, and in the process, positively impacting over 400
client opportunities.
3. Branding
Brand Infosys is a key intangible asset for the Company. It is
nurtured by over 3,40,000 of our purpose-driven people seeking
to amplify human potential and create the next opportunity
for people, businesses, and communities. The brand serves to
position Infosys as the next-generation digital services partner of
choice for enterprises navigating their transformation powered
by the cloud. 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. For over four
decades, we have been deeply committed to being a well-
governed, environmentally sustainable partner for our clients
where diverse talent, in an inclusive workplace, helps them
navigate their next.
Our marketing reach extends globally through digital-first multi-
channel campaigns. As the digital innovation partner for the
Australian Open, Roland-Garros, ATP and The International Tennis
Hall of Fame, 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 Madison Square Garden (MSG) properties
including the New York Knicks, New York Rangers and the MSG
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.
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Infosys Integrated Annual Report 2022-23 6. Infosys Knowledge Institute
The Infosys Knowledge Institute (IKI) drives new engagement
with Infosys prospects and clients by harnessing the intellectual
capital of our employees, partners, and academics to develop
and share a deeper understanding of the business impact of
technology and market trends. Combining surveys, quantitative
analysis, expert interviews, client webinars and events, IKI creates
perspectives, benchmarks, and diagnostic tools on trends across
industries and functions. Current research themes include
sustainability, artificial intelligence, data analytics, cloud, digital
commerce, agile methods, metaverse and cybersecurity. Major
works include the Radar maturity assessments, TechCompass
series, Practical Sustainability and Live Enterprise books 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.
Management’s discussion and analysis
4. Client base
Our client-centric approach continues to bring us high levels
of client satisfaction. We, along with our subsidiaries, added
458 new clients, including a substantial number of large global
corporations. Our total client base at the end of the year stood
at 1,872. 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 +
2023
2022
40
75
298
922
38
64
275
853
5. Infosys Leadership Institute
In fiscal 2023, the Infosys Leadership Institute (ILI) was recognized
with five prestigious international awards, a testament to the
impact of leadership programs on the strategic imperatives
of the organization. These include the Chief Learning Officer
Learning Elite award and Brandon Hall awards for overall
leadership development strategy and execution, IamtheFuture
women in leadership program, and the Culture Transformation
program. The Constellation Program continued its focus on
developing high-potential leaders towards strengthening
the organizational successor pool. 13 strategic projects and
a 10-month leadership certification program with Harvard
Business School (HBS) were the cornerstones of development of
Constellation leaders.
Since its inception in 2021, nearly 450 women leaders as part of
the IamtheFuture program have successfully completed various
phases of their learning journey towards earning the Infosys
Leadership Institute-Stanford GSB certification. The year saw
the second cohort of women leaders globally completing the
program while the first cohort completed the advanced version
of the program. IamtheFuture continues to drive individual
and organization impact through a combination of pertinent
development-and-leadership-driven talent actions for women
leaders. ILI also continued its focus on bringing contemporary
and impactful programs for all the senior leaders in the
organization. This included a highly-appreciated program on
financial leadership with Stanford GSB, which was contextualized
by senior finance leaders at Infosys. There was a significant
increase in the participation, with 7,000+ leadership learning
days across 125 programs. About 75% of all senior leaders
participated in at least one Ivy League program, with more than
95% completing at least one leadership program during the year.
116
Infosys Integrated Annual Report 2022-23 Statutory reports
Corporate governance report
Our corporate governance philosophy
Our corporate governance is a reflection of our value system,
encompassing our culture, policies, and relationships with our
stakeholders. Integrity and transparency are key to our corporate
governance practices 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 capacity to create wealth. 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 Co-operation 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
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
Legal compliance
Satisfy both the spirit and the letter of
the law in all our actions and disclosures
Integrity and
transparency &
Relationship
with stakeholders
Ensure transparency and maintain a high level of integrity
Communicate frequently with stakeholders, including
clients, employees, 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 principles of our corporate
governance framework. This report gives a comprehensive overview of how our governance adheres to the seven pillars of our
governance framework.
117
Infosys Integrated Annual Report 2022-23 The Board
recognizes
its primary role of
trusteeship of shareholder
capital. As a trustee, it
strives to ensure excellence
and integrity in setting
world-class corporate
governance
standards.
Independent directors
The Companies Act, 2013 and the
SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“the Listing
Regulations”) as amended, 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 an 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.
Corporate governance report
Board as a trustee
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, 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.
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 necessary.
•
•
Providing strategic guidance to the Company and ensuring
effective monitoring of the Management.
Exercising independent judgment on corporate affairs.
• Assigning a sufficient number of non-executive members of
the Board to tasks where there is a potential for conflict of
interest, 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.
118
Infosys Integrated Annual Report 2022-23 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, skills and other
domains, which will ensure that Infosys
retains its competitive advantage.
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
Annual General Meeting (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.
Executive
director
Salil Parekh
25%
Size and composition
of the Board
The composition of our Board
as on March 31, 2023
Non-executive and
non-independent director
Nandan M. Nilekani
Independent directors
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer
75%
Indian
62.5%
Foreign national
37.5%
Men
87.5%
Women
12.5%
Tenure analysis of the Board
as on March 31, 2023
Average tenure (in years)
5.6
Non-executive and
non-independent
director
5.2
Executive
director
3.1
Independent
directors
3.6
The Board
Average tenure (in years)
< 2 years
2-4 years
>4 years
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.
Meeting of independent directors
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
financial 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 process 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 resources matters and the
performance of the executive members of
the Board, and the Chairman.
119
As on March 31, 2023, the Board comprised
eight members, consisting of a non-
executive and non-independent Chairman,
Chief Executive Officer & Managing Director
(CEO & MD), and six independent directors.
The profiles of the Board members
encompassing details of nationality, age,
date of (re)appointment, tenure on the
Board, term-ending date, shareholding,
Board memberships in Indian listed
companies, committee details as per
Regulation 26 of the Listing Regulations
and the details of core expertise/
competency of each director is provided
under Infosys Board of Directors section in
the Integrated Annual Report. There are no
inter-se relationships between our Board
members. The Company does not have any
material pecuniary relationship with any of
the non-executive directors. Further, during
the year, the Company has not provided
any loans or advances to firms/companies
in which directors are interested.
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 under the Risk Management
Committee. The Sub-committee comprises
only independent directors.
Board meetings
Scheduling and selection of agenda
items for Board meetings
The tentative dates of Board meetings
for the next fiscal are decided in advance
and published in the Integrated Annual
Report. The Chairman and the Company
Secretary, in consultation with the CEO
& MD, propose the agenda for each
meeting, along with explanatory notes, and
distribute these in advance to the directors.
Infosys Integrated Annual Report 2022-23 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.
CEO & MD
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 to enhance
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.
Lead Independent Director
The lead independent director was appointed by the Board
to ensure robust independent leadership of the Board. The
general authority and responsibilities of the lead independent
director are decided by the group of independent directors. The
lead independent director also performs additional duties as
determined by the Board.
The lead independent director provides leadership to the
independent directors, liaises on behalf of the independent
directors and ensures the Board’s effectiveness in maintaining
high-quality governance of the organization and effective
functioning of the Board.
Corporate governance report
Responsible leadership
Responsibilities of the Board
leadership
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 roles of Chairman and the 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 in
which 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 the performance of
individual directors.
The Chairman actively works 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.
120
Infosys Integrated Annual Report 2022-23 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
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 strategic, legal and compliance,
and operational risk exposures
Experience in assessing and managing cybersecurity-related risks
and implementing cybersecurity policies, procedures and strategies
The details of core expertise / competency of each director is provided in Infosys Board of Directors section in the Integrated Annual Report.
121
Infosys Integrated Annual Report 2022-23 Corporate governance report
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.
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 endeavour 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-members2023.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:
122
The Board
recommends the
appointment of the
director to the
shareholders.
The proposal is
placed before the
shareholders for
approval.
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 the Board members a platform 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.
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 2023 are as follows:
Name of the director
Nandan M. Nilekani
Salil Parekh
Kiran Mazumdar-Shaw (1)
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer (2)
Total hours
No. of training hours attended
during fiscal 2023
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
4
48
(1)
(2)
Retired as Independent Director effective March 22, 2023
Appointed as Independent Director effective January 12, 2023
Infosys Integrated Annual Report 2022-23 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 operational plans are
presented to the Board in addition to the quarterly and annual
financial statements. Specific cases of acquisitions, important
managerial decisions, material positive / negative developments
and statutory matters are presented
to the committees of the Board and
later, with the recommendation of the
committees, to the Board for its approval.
As a process, information to directors is
submitted along with the agenda well in
advance of Board meetings. Inputs and feedback
of Board members are taken and considered while preparing
the agenda and documents for the Board meetings. At these
meetings, directors can provide their inputs and suggestions on
various strategic and operational matters.
Attendance of directors during fiscal 2023
During the year, eight Board meetings were held.
Board attendance
No. of Board meeting
Name of the director
AGM on
June 25,
2022
1
2
3
4
5
6
7
8
May 21,
2022
Jul 13,
2022
Apr
12-13,
2022
Oct 11,
2022
Jul
23-24,
2022
Oct
12-13,
2022
Jan
11-12,
2023
Mar 10,
2023
Held
during
tenure
% of
attendance
Nandan M. Nilekani
Salil Parekh
Kiran Mazumdar-Shaw(1)
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer(2)
% of attendance
L
L
L
L
NA
100
NA
NA
NA
NA
100
100
100
100
NA
88
NA
100
100
67
Present
Attended
L
Leave of absence
Attended through video call
(1) Retired as Independent Director effective March 22, 2023
(2) Appointed as Independent Director effective January 12, 2023
8
8
8
8
8
8
8
8
2
7
7
7
7
8
8
8
8
2
88
88
88
88
100
100
100
100
100
123
Infosys Integrated Annual Report 2022-23 Corporate governance report
Governance of Board committees
The Board, in consultation with the Nomination and
Remuneration Committee, is responsible for assigning and
determining the 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. Generally, all
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, 2023
The Board
Audit Committee
Nomination and
Remuneration
Committee
Corporate Social
Responsibility
Committee
Environmental, Social
and Governance
Committee
Risk Management
Committee
Bobby Parikh
D. Sundaram
Michael Gibbs
D. Sundaram
Michael Gibbs
Govind Iyer
Govind Iyer
Uri Levine
Chitra Nayak
Chitra Nayak
Uri Levine
Govind Iyer
Chairperson
Member
D. Sundaram
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer
Cybersecurity Risk
Sub-committee
Michael Gibbs
D. Sundaram
Uri Levine
Govind Iyer
Stakeholders
Relationship
Committee
Michael Gibbs
D. Sundaram
Bobby Parikh
Chitra Nayak
124
Infosys Integrated Annual Report 2022-23 Audit Committee
Bobby Parikh
Chairperson and Financial expert
The audit committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the Committee comprised:
1. Bobby Parikh, Chairperson and Financial expert
2. D. Sundaram, Financial Expert
3. Michael Gibbs
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 13, 2023, 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 related to the financial statements
for the relevant period
Providing an independent channel of communication for
the Chief Compliance Officer, the 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, 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
125
Infosys Integrated Annual Report 2022-23 Corporate governance report
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
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
Composition and attendance
is responsible for the Company’s internal control over financial
reporting and the financial reporting process. The independent
auditors are responsible for performing an independent audit
of the Company’s financial statements in accordance with
the Generally Accepted Auditing Principles and for issuing a
report based on the audit.
The Committee met 11 times during the year, which is more
than the requirement of the Companies Act, 2013 and the
Listing Regulations.
100%
Independence
3
Members
11
Meetings
97%
Attendance
Attendance details of the Audit Committee
Audit Committee meeting
Committee meeting details
Name of the member
1
2
3
4
5
6
7
8
9
10
11
Apr 4,
2022
Apr
12-13,
2022
May
21,
2022
Jul 13,
2022
Jul
23-24,
2022
Aug 1,
2022
Oct 11,
2022
Oct
12-13,
2022
Jan
11-12,
2023
Mar
1-2,
2023
Mar
10,
2023
Held
during
tenure
% of
attendance
Bobby Parikh(1)
D. Sundaram(2)
Michael Gibbs
L
11
11
11
11
10
11
100
91
100
% of attendance
100
100
100
100
100
100
100
100
100
100
67
Present
Attended
L
Leave of absence
Attended through video call
(1) Appointed as the Chairperson of the Committee effective March 23, 2023
(2) Ceased to be the Chairperson of the Committee effective March 23, 2023
Audit Committee report for the year ended March 31, 2023
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 (whenever necessary, without the presence of members of the Management) regarding the
Company’s audited financial statements and sought the auditors’ judgment on the quality and applicability of the accounting
principles, the reasonableness of significant judgments, the adequacy of disclosures in the financial statements and other
matters as the Committee deemed necessary
Undertook an annual performance evaluation of its own effectiveness
Reviewed with independent auditors the nature and scope of the audit, reviewed the audit engagement to ascertain adequacy
and appropriateness
Reviewed the Management’s discussion and analysis of the financial condition and results of operations
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.
Q
Q
A
A
A
A
Q
126
Infosys Integrated Annual Report 2022-23 Reviewed the annual performance assessment of statutory auditors, internal auditors and the secretarial auditors
Recommended appointment of internal auditors and secretarial auditors
Reviewed and recommended audit fees, audit related fees, availing permissible non-audit services by statutory auditors and the
corresponding non-audit service fees for Board’s approval
Helped the Board monitor the Management’s financial reporting process
Reviewed the process adopted by the Management for testing impairment of assets including financial assets and goodwill
Reviewed the significant transactions of the subsidiaries
Reviewed and approved related party transactions, granted omnibus approvals from time to time, took note of half-yearly
disclosures to the stock exchanges and recommended to the Board for approval as and when necessary
Reviewed the performances of the acquired entities. It also approved and recommended the investments, divestments and
acquisitions made during the year for the approval of the Board
Monitored and reviewed mechanism to track the compliances under insider trading Regulations and also reviewed the legal and
compliance updates in addition to the investigations of the whistleblower complaints received during the year
Reviewed, approved and recommended amendments to the Audit Committee Charter
Reviewed and recommended to the Board on various policies as part of annual policy review process
Took note of disclosures by promoters under Regulation 31(5) of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011
Frequency
A Annually
Q Quarterly
P Periodically
A
A
P
P
P
P
P
P
Q
P
P
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 the 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, 2023,
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, 2023, 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 quarter and year ended
March 31, 2023, 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, 2023, be
accepted by the Board as a true and fair statement of the
financial status of the Group and included in the Company’s
Annual Report on Form 20-F, to be filed with the U.S.
Securities and Exchange Commission (SEC)
•
•
•
The appointment of Ernst & Young LLP as the internal
auditors of the Company for the year ending March 31, 2024,
to review various operations of the Company
The appointment of Makarand M. Joshi & Co. Company
Secretaries, as secretarial auditor for the year ending March
31, 2024, to conduct the secretarial audit as prescribed under
Section 204 and other applicable sections of the Companies
Act, 2013
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
satisfied that it has complied with its responsibilities as outlined
in the Audit Committee Charter. The Board has accepted all
recommendations made by the Audit Committee.
Bengaluru
April 13, 2023
Sd/-
Bobby Parikh
Chairperson
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Infosys Integrated Annual Report 2022-23 Corporate governance report
Nomination and Remuneration Committee
D. Sundaram
Chairperson
The Nomination and Remuneration Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the
Committee comprised:
1. D. Sundaram , Chairperson
2. Michael Gibbs
3. Govind Iyer
Objectives of the Committee
The main objectives and responsibilities of the Committee are to:
Committee governance
The Committee fulfills the requirements of:
1. Assist the Board in discharging its responsibilities relating to
the 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
(including identifying persons to be appointed to positions of
KMP and senior management in accordance with identified
criteria and to recommend to the Board their appointment
and removal);
3. Formulate the criteria for determining qualifications, positive
attributes and independence of a director, and performance
evaluation of directors on the Board
4. Administration of equity-based plans / schemes approved by
the shareholders
5. Oversee the Company’s nomination process for KMP
and senior management and identify, screen and review
individuals qualified to serve as directors, KMP and senior
management consistent with criteria approved by the Board
6. Recommend the appointment and removal of directors, for
approval at the annual meeting of shareholders;
7. Carry out evaluation of the performance of the Board and
review the evaluation’s implementation and compliance;
8. Leadership development and succession planning
9. Develop and maintain corporate governance policies
applicable to the Company
10. Devise a policy on Board diversity
Composition and attendance
• 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 by which the Company
recruits new members to its Board, and the processes by which
the Company recruits, motivates and retains outstanding senior
management as well as the Company’s overall approach to
human resources management.
Committee Policy and Charter
The Board amended the Charter of the Nomination and
Remuneration Committee on January 12, 2022 and the
Nomination and Remuneration Policy on March 17, 2023. 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 seven
times during fiscal 2023.
100%
Independence
3
Members
7
Meetings
93%
Attendance
128
Infosys Integrated Annual Report 2022-23 Attendance details of the Nomination and Remuneration Committee
Nomination and Remuneration Committee meeting
Committee meeting details
Name of the member
1
2
3
4
5
6
7
Apr 12,
2022
May 21,
2022
Jul 23,
2022
Oct 11,
2022
Oct 12,
2022
Jan 11,
2023
Mar 10,
2023
D. Sundaram(1)
Michael Gibbs
Govind Iyer(2)
Kiran Mazumdar-Shaw(3)
NA
NA
NA
NA
NA
NA
% of attendance
100
100
100
100
100
100
Present
Attended
L
Leave of absence
Attended through video call
L
L
50
Held
during
tenure
% of
attendance
7
7
1
7
6
7
1
6
86
100
100
86
(1) Appointed as the Chairperson of the committee effective March 23, 2023
(2) Appointed as a member of the Committee effective January 13, 2023
(3) Ceased to be a Chairperson and member of the Committee due to retirement effective March 22, 2023
Nomination and remuneration committee report for the year ended March 31, 2023
Activities of the Committee during the year
Frequency
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 2023.
Undertook a review of the succession plans for key leadership positions, and helped to shape and monitor the development
plans of key leadership personnel
Reviewed the responsibilities of the Board-level committees and based on the expertise of the members of the Board,
recommended for the reconstitution of the Board-level committees
Reviewed and recommended to the Board the amendments to the Nomination and Remuneration Policy
Reviewed the Nomination and Remuneration Committee Charter
Reviewed the overall Board composition and recommended the appointment of Govind Iyer as a member of the Board
Placed a substantial focus on improving the overall diversity of the workforce and enhancing employee engagement through
real-time feedback from employees
Stock incentives were approved and granted to eligible employees of the Company and subsidiaries during the year under the
2015 Plan and the 2019 Plan.
Designing, benchmarking and continuously reviewing the compensation program for the Board and the CEO & MD against the
achievement of measurable performance goals
Undertook an annual performance evaluation of its own effectiveness
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.
Recommended the appointment of Shaji Mathew as Group Head of Human Resources and KMP
Recommended the appointment of D. Sundaram as Lead Independent Director of the Company, for the approval of the Board
Frequency
A Annually
Q Quarterly
P Periodically
Q
A
P
P
P
A
P
P
P
P
A
Q
P
P
Bengaluru
April 12, 2023
Sd/-
D. Sundaram
Chairperson
129
Infosys Integrated Annual Report 2022-23 Corporate governance report
Corporate Social Responsibility Committee
Govind Iyer
Chairperson
The Corporate Social Responsibility Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the
Committee comprised:
1. Govind Iyer, Chairperson
2. Uri Levine
3. Chitra Nayak
Our CSR philosophy
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. Formulating a CSR annual action plan and recommending it to
the Board
5. Reviewing the Company’s initiatives and programs
6. Coordinating with Infosys Foundation or such other
agency(ies) in implementing programs and executing
initiatives as per the CSR policy of the Company.
Composition and attendance
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 in identifying the areas
of CSR activities, programs and execution of initiatives as per
defined guidelines and for overseeing the activities / functioning
of the Infosys Foundation, Infosys Foundation USA and other
initiatives undertaken by the Company, including Australia and
Europe. 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 2023.
100%
Independence
3
Members
4
Meetings
100%
Attendance
130
Infosys Integrated Annual Report 2022-23 Attendance details of the CSR Committee
CSR Committee meeting
Name of the member
Kiran Mazumdar-Shaw(1)
Chitra Nayak
Uri Levine
Govind Iyer(2)
% of attendance
Committee meeting details
1
2
3
4
Apr 11, 2022
Jul 23, 2022
Oct 11, 2022
Jan 10, 2023
NA
100
NA
100
NA
100
NA
100
Present
Attended
L
Leave of absence
Attended through video call
(1) Ceased to be a Chairperson and member of the Committee due to retirement effective March 22, 2023
(2) Appointed as a member of the Committee effective January 13, 2023 and the Chairperson effective March 23, 2023
Held
during
tenure
% of
attendance
4
4
4
4
4
4
100
100
100
NA
NA
NA
Committee Policy and Charter
The Committee, with the approval of the Board, has adopted the
CSR Policy as required under Section 135 of the Companies Act,
2013. The 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
CSR report
The CSR report, as required under the Companies Act, 2013,
for the year ended March 31, 2023, is attached as Annexure 6
to the Board’s report.
The Committee, on a periodic basis, reviewed and approved
the budget and disbursement of funds. 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. Accordingly, during
fiscal 2023, the Company spent `391.51 crore on various projects.
The unspent balance of `45.33 crore is towards various ongoing
projects 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.
In addition to the `391.51 crore spent in fiscal 2023, the Company
also spent `64.39 crore on account of ongoing projects of fiscals
2021 and 2022. The CSR amount spent in the US, Australia, and
across Europe, in UK, Germany, France and Ukraine, is over and
above the statutory requirement in India.
Bengaluru
April 11, 2023
Sd/-
Govind Iyer
Chairperson
131
Infosys Integrated Annual Report 2022-23 Corporate governance report
ESG Committee
Chitra Nayak
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, 2023, the Committee comprised:
1. Chitra Nayak, Chairperson
2. Uri Levine
3. Govind Iyer
Objectives and responsibilities of the Committee
1. Guide the creation of the ESG vision and ambitions of the
Company and continuously review updates and progress on
the ESG vision and goals, thereon.
2. Review the ESG Operations Council and its working.
The Committee may form and delegate authority to sub-
committees as and when appropriate.
3. Ensure that the Company is taking the appropriate measures
to undertake and implement actions to further its ESG vision
and ambitions. The Committee shall have access to any
internal information necessary to fulfill its role, in this regard.
4. Review any statutory requirements for sustainability
reporting, e.g. Business Responsibility and Sustainability
Report (BRSR) and guide Infosys’ leadership on global ESG
assessments.
5. Authority to obtain advice and assistance from internal or
external experts, advisors.
6. Review and reassess the adequacy of the ESG Committee
Charter periodically and recommend any proposed changes
to the Board for approval.
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 dated July 14, 2021, 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 report
2023 can be accessed at
https://www.infosys.com/content/dam/infosys-web/en/about/
corporate-responsibility/esg-vision-2030/index.html
https://www.infosys.com/sustainability/documents/infosys-
esg-report-2022-23.pdf
The ESG committee met four times during fiscal 2023.
Composition and attendance
100%
Independence
3
Members
4
Meetings
100%
Attendance
132
Infosys Integrated Annual Report 2022-23 Attendance details of the ESG Committee
ESG Committee meeting
Name of the member
Chitra Nayak(1)
Kiran Mazumdar-Shaw(2)
Uri Levine
Govind Iyer(3)
% of attendance
Committee meeting details
1
2
3
4
Apr 11, 2022
Jul 23, 2022
Oct 11, 2022
Jan 10, 2023
NA
100
NA
100
NA
100
NA
100
Held
during
tenure
% of
attendance
4
4
4
4
4
4
100
100
100
NA
NA
NA
Present
Attended
L
Leave of absence
Attended through video call
(1) Appointed as the Chairperson of the Committee effective April 14, 2022
(2) Ceased to be the Chairperson of the Committee effective April 13, 2022 and member of the Committee effective March 22, 2023.
(3) Appointed as a member of the Committee effective January 13, 2023
ESG Committee report for the year ended March 31, 2023
Activities of the Committee during the year
Frequency
Made regular reports to the Board regarding its actions and made recommendations to the Board as appropriate
Reviewed the ESG Operations Council and its working
Reviewed digital skilling and reskilling initiatives of the Company
Reviewed responsible supply chain initiatives, global climate change disclosure requirements, and process and data quality
audit reports
Reviewed ESG ambitions 2030 and took note of responsible supply chain program and various sustainable procurement initiatives
Reviewed and recommended amendments to the Corporate Governance Guidelines, for the approval of the Board
Monitored the Company’s progress on Diversity, Equity and Inclusion leadership, including training initiatives on unconscious
bias and Orbit Next etc.
Reviewed the Company’s position with respect to global ESG assessments and provided directions to address gaps
Reviewed client engagements on climate actions and sustainability
Frequency
A Annually
Q Quarterly
P Periodically
Q
Q
A
P
P
P
Q
Q
A
Bengaluru
April 11, 2023
Sd/-
Chitra Nayak
Chairperson
133
Infosys Integrated Annual Report 2022-23 Corporate governance report
Risk Management Committee
D. Sundaram
Chairperson
The Risk Management Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the
Committee comprised:
1. D. Sundaram, Chairperson
2. Michael Gibbs
3. Uri Levine
4. Bobby Parikh
5. Chitra Nayak
6. Govind Iyer
Objectives and responsibilities of the Committee
The primary objectives of the Committee are:
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
8. To review and reassess the adequacy of the Risk Management
Committee 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
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
The Committee met four times during fiscal 2023.
Composition and attendance
100%
Independence
6
Members
4
Meetings
100%
Attendance
134
Infosys Integrated Annual Report 2022-23 Attendance details of the Risk Management Committee
Risk Management Committee meeting
Name of the member
D. Sundaram
Kiran Mazumdar-Shaw(1)
Michael Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer(2)
% of attendance
Committee meeting details
1
2
3
4
Apr 11, 2022
Jul 24, 2022
Oct 11, 2022
Jan 10, 2023
Held
during
tenure
% of
attendance
4
4
4
4
4
4
4
4
4
4
4
4
100
100
100
100
100
100
NA
100
NA
100
NA
100
NA
100
NA
NA
NA
Present
Attended
L
Leave of absence
Attended through video call
(1) Ceased to be a member of the Committee due to retirement effective March 22, 2023
(2) Appointed as a member of the Committee effective January 13, 2023
Risk Management Committee report for the year ended March 31, 2023
Activities of the Committee during the year
Frequency
Reviewed the risks arising due to evolving macro‐economic scenarios in markets we operate
Reviewed risks and mitigation actions to heightened competitive landscape, technology disruption and innovation, inflation,
and regulatory environment
Reviewed the risks and assessed the mitigation actions put in place to address talent constraints
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 service delivery risk in critical client engagements
Reviewed client credit risk
Reviewed the risks to the achievement of ESG goals
Reviewed the risks related to hybrid working model
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, incident policy, related system controls, GDPR and
similar regulatory requirements, risks and progress of mitigation actions
Reviewed the cybersecurity related risks and oversight of the Cybersecurity Risk Sub‐committee
Submitted regular reports and recommendations to the Board with respect to risk management and mitigation procedures
Reviewed the appointment and terms of remuneration of the Chief Risk Officer
Reviewed and approved the Enterprise Risk Management Framework of the Company
Undertook an annual performance evaluation of its own effectiveness
Frequency
A Annually
Q Quarterly
P Periodically
P
P
P
P
P
P
P
Q
P
P
Q
Q
Q
Q
A
A
A
Bengaluru
April 11, 2023
Sd/-
D. Sundaram
Chairperson
135
Infosys Integrated Annual Report 2022-23 Corporate governance report
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, 2023, the sub-
committee comprised:
1. Michael Gibbs, Chairperson and Cybersecurity expert
2. D. Sundaram
3. Uri Levine
4. Govind Iyer
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
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 2023.
Composition and attendance
100%
Independence
4
Members
4
Meetings
100%
Attendance
Attendance details of the Cybersecurity Risk Sub-committee
Cybersecurity Risk Sub-committee meeting
Name of the member
1
2
3
4
Apr 05, 2022
Jul 14, 2022
Oct 11, 2022
Jan 10, 2023
Committee meeting details
Michael Gibbs
D. Sundaram
Uri Levine
Govind Iyer(1)
% of attendance
NA
100
NA
100
NA
100
NA
100
Present
Attended
L
Leave of absence
Attended through video call
(1) Appointed as a member of the committee effective January 13, 2023
Held
during
tenure
% of
attendance
4
4
4
4
4
4
100
100
100
NA
NA
NA
136
Infosys Integrated Annual Report 2022-23 Cybersecurity Risk Sub-committee report for the year ended March 31, 2023
Activities of the Committee during the year
Frequency
Reviewed the security awareness initiatives along with consequence management for violations
Reviewed the heightened external threat environment
Reviewed the remote and hybrid working challenges and controls
Reviewed the new regulatory requirements for cybersecurity
Reviewed the cyber resilience table-top exercise and other initiatives like the internal and external bug bounty program, ISG
boot camp etc.
Reviewed subsidiaries’ BitSight rating
Reviewed the threat landscape and incident metrics, global ransomware attacks, and Infosys preparedness
Reviewed the security program maturity assessment and external benchmarking
Frequency
A Annually
Q Quarterly
P Periodically
P
P
P
P
P
P
Q
A
Bengaluru
April 11, 2023
Sd/-
Michael Gibbs
Chairperson
137
Infosys Integrated Annual Report 2022-23 Corporate governance report
Stakeholders Relationship Committee
Michael Gibbs
Chairperson
The Stakeholders Relationship Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the
Committee comprised:
1. Michael Gibbs, Chairperson
2. D. Sundaram
3. Bobby Parikh
4. 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 four 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
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 dated April
1, 2019, is available on the Company’s website, at https://www.
infosys.com/investors/corporate-governance/documents/
stakeholders-relationship-committee.pdf
100%
Independence
4
Members
4
Meetings
100%
Attendance
138
Infosys Integrated Annual Report 2022-23 Attendance details of the Stakeholders Relationship Committee
Stakeholders Relationship Committee meeting
Committee meeting details
Name of the member
1
2
3
4
Apr 11, 2022
Jul 23, 2022
Oct 11, 2022
Jan 10, 2023
D. Sundaram(1)
Bobby Parikh
Chitra Nayak
Michael Gibbs(2)
% of attendance
NA
100
NA
100
NA
100
NA
100
Held
during
tenure
% of
attendance
4
4
4
4
4
4
100
100
100
NA
NA
NA
Present
Attended
L
Leave of absence
Attended through video call
(1) Ceased to be the Chairperson of the Committee effective March 23, 2023
(2) Appointed as the Chairperson of the Committee effective March 23, 2023
Shareholding as on March 31, 2023
Complaints received and resolved during the year
ended March 31, 2023
Members
29,39,742
285
Total
29,40,027
% to equity
99.90
0.10
Total
100%
Shares
2022
2023
414,45,16,086 40,43,958
Total
414,85,60,044
Dematerialized
Physical
3,312
3,312
3,568
3,568
Received
Resolved
Stakeholders Relationship Committee report for the year ended March 31, 2023
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 timely receipt of
dividend warrants / annual reports / notices by the shareholders of the Company
Reviewed the unclaimed dividend and equity shares transferred to the Investor Education and Protection Fund (IEPF) pursuant to
the IEPF Rules
Reviewed the annual audit report submitted by the RTA’s (Registrar & Share Transfer Agent) independent auditors on the annual
internal audit conducted on the RTA operations as mandated by SEBI
Periodically provided updates to the Board
Reviewed the measures taken for effective exercise of voting rights by shareholders
Reviewed the adherence to service standards and security assessments adopted in respect of various services being rendered by
the RTA
Undertook an annual performance evaluation of its own effectiveness
Reviewed the Management’s investor / analyst interactions
Reviewed the key investor relations updates
Frequency
A Annually
Q Quarterly
P Periodically
A
P
P
A
P
A
P
A
Q
Q
Bengaluru
April 11, 2023
Sd/-
Michael Gibbs
Chairperson
139
Infosys Integrated Annual Report 2022-23 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.
Corporate governance report
Fairness and excellence
Board member evaluation
One of the key functions of the Board is
to monitor and review the Board evaluation
framework. The Board works with the Nomination
and Remuneration Committee to lay down the
evaluation criteria for the performance of the Chairman, the
Board, Board committees, and executive / non-executive /
independent directors through peer evaluation, excluding the
director being evaluated.
Independent directors have three key roles – governance, control
and guidance. Some 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 internally 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
2023. 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 various 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 2023.
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.
140
Board and executive leadership
compensation
Executive leadership compensation
Our executive compensation programs encourage
reward for performance. A significant portion of
the executives’ total rewards is tied to the delivery of long-
term corporate performance goals to align with the interest
of the shareholders.
As required under the Listing Regulations, the Nomination
and Remuneration Committee recommends to the Board
the payment of remuneration to the senior management.
The Nomination and Remuneration Policy of the Company
is available on our website, at https://www.infosys.com/
investors/corporate-governance/documents/nomination-
remuneration-policy.pdf.
Non-executive and non-independent chairman’s
compensation
Nandan M. Nilekani, Chairman, voluntarily chose not to receive
any remuneration for his services rendered to the Company.
Independent directors’ compensation
The compensation payable to the independent directors is
limited to a fixed amount per year as determined and approved
by the Board, the sum of which does not exceed 1% of net profit
for the year, calculated as per the provisions of the Companies
Act, 2013. The Board reviews the performance of independent
directors on an annual basis.
The Board, while deciding the basis for determining the
compensation of the independent directors, takes various things
into consideration. These include global board compensation
benchmarking, participation of individual directors in Board and
committee meetings, other responsibilities, such as membership
or chairmanship of committees, time spent in carrying out
other duties, roles and functions as prescribed in Schedule
IV of the Act, Listing Regulations and such other factors as
the Board deems fit.
Infosys Integrated Annual Report 2022-23 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, 2023 is `15.17 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, 2023.
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$ = ` 82.17 as on March 31, 2023
in ` crore
1.23
0.21
2.47
0.41
0.25
0.25
0.16
0.08
0.01
0.25
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 independent 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
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.
Materially significant related party transactions
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, which is available on our website, at https://www.infosys.
com/investors/corporate-governance/Documents/related-party-
transaction-policy.pdf.
141
Infosys Integrated Annual Report 2022-23 Corporate governance report
Remuneration to directors in fiscal 2023
Name of the director
Fixed salary
Base
salary
(A)
Retiral
benefits
(B)
Total fixed
salary
(A+B)
Bonus /
incentives /
variable pay
Perquisites
on account of
stock options
exercised(1)*
Non-executive and non-independent director
in ` crore
Commission
Total
Nandan M. Nilekani(2)
Executive director
Salil Parekh(3)
Independent directors
D. Sundaram(4)
Kiran Mazumdar-Shaw(5)
Michael Gibbs
Bobby Parikh
Chitra Nayak
Govind Iyer(6)
Uri Levine(7)
–
–
–
–
–
–
–
6.67
0.45
7.12
18.73
30.60
–
56.45
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2.67
2.45
2.63
2.02
2.67
2.45
2.63
2.02
2.54
2.54
0.49
2.37
0.49
2.37
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 2023 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 1,24,783 Restricted Stock Units (RSUs) under the 2015 Plan and 73,962 RSUs under the 2019
Plan during fiscal 2023
b) On the recommendation of the Nomination and Remuneration Committee, in accordance with the terms of his previous employment agreement, the Board
approved
i) the grant of 84,361 performance-based RSUs under the 2015 Plan effective May 2, 2022
ii) the grant of 64,893 performance-based RSUs for fiscal 2023 under the 2019 Plan effective May 2, 2022. 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 previous employment agreement.
c) On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his revised
employment agreement effective July 1, 2022, the Board approved
i) the grant of 1,40,228 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain
performance targets.
ii) the grant of 12,894 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain
environment, social and governance milestones as determined by the Board.
iii) the grant of 32,236 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of the Company’s
performance on cumulative relative TSR over the years and as determined by the Board.
iv) the grant of 19,341 annual time-based RSUs for fiscal 2023 under the 2015 Plan effective February 1, 2023
These RSUs will vest in line with the revised employment agreement.
(4) D. Sundaram was appointed as Lead Independent Director effective March 23, 2023.
(5) Kiran Mazumdar-Shaw retired as Lead Independent Director effective March 22, 2023.
(6) Govind Iyer was appointed as Independent Director effective January 12, 2023.
(7) Uri Levine to retire as Independent Director effective April 19, 2023.
* The RSUs were issued at par value.
142
Infosys Integrated Annual Report 2022-23
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 2023.
Employment agreements with executive director
Name of the director
Salil Parekh, Chief Executive
Officer and Managing Director
Effective date of
executive employment
agreement
January 2, 2018 (Initial
appointment) and July 1,
2022 (reappointment)
Details of shareholders’ approval
on the agreements
Website links
The shareholders approved the
initial 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. Further, the shareholders
approved the reappointment
of Salil Parekh including revised
remuneration payable to him at
the 41st AGM held on June 25, 2022.
Employment agreement including
key terms:
https://www.infosys.com/investors/
reports-filings/documents/
ceo-executive-employment-
agreement2022.pdf
and
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
and
https://www.infosys.com/investors/
reports-filings/documents/agm-
notice2022.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 (1)
Tax fees
Others
Total
(1)
Includes audit and audit-related services
in ` crore
Fiscal 2023
Fiscal 2022
21
4
1
26
18
3
1
22
143
Infosys Integrated Annual Report 2022-23 Corporate governance report
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
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 center of all disclosures
and reports.
Integrity and
transparency
&
Relationship with
stakeholders
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”.
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.
144
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
Infosys Integrated Annual Report 2022-23
Dividend for fiscal 2023
`16.50
Dividend cycle
Interim 2022-23
Record date
Oct 28, 2022
Payout date
Nov 10, 2022
Total
Dividend
`34.00
`17.50
Dividend cycle
Final 2022-23
Record date
Jun 02, 2023
Payout date
Jul 03, 2023
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
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
2021-2022
2022-2023
Final
Interim
Final
Interim
Final & Special
Interim
Special
Final
Interim
Final
Interim
Final
Interim
Final
Interim
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
16.00
16.50
Due date
for transfer
July 17, 2023
June 18, 2016
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
June 25, 2022
July 25, 2029
October 13, 2022
November 13, 2029
Amount (`)(2)
1,42,78,457
1,22,82,105
1,98,31,803
2,11,76,948
4,21,21,472
1,81,56,524
1,04,84,992
2,52,78,908
2,17,17,633
2,39,79,822
2,78,11,807
3,04,57,367
3,37,73,488
3,58,09,082
3,24,27,096
(1) Not adjusted for bonus issue
(2) Amount unclaimed as on March 31, 2023
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 the IEPF. Shareholders may note that both the
unclaimed dividends and corresponding shares transferred to the IEPF, including all benefits accruing on such shares, if any, can be
claimed from the 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
2022-23
2022-23
2021-22
2021-22
2020-21
2020-21
Type of dividend
Dividend declared on
Date of transfer to IEPF
Amount transferred to IEPF
Interim 2015-16
Final 2014-15
Interim 2014-15
Final 2013-14
Interim 2013-14
Final 2012-13
October 12, 2015
June 22, 2015
October 10, 2014
June 14, 2014
October 18, 2013
June 15, 2013
November 17, 2022
July 22, 2022
November 12, 2021
July 19, 2021
November 24, 2020
July 20, 2020
1,03,63,320
1,39,48,102
82,69,260
1,19,89,432
80,44,220
95,13,423
145
Infosys Integrated Annual Report 2022-23 Corporate governance report
Shares transferred to IEPF
During the year, the Company transferred 1,48,274 and 2,98,879 shares on August 20, 2022 and December 14, 2022, respectively, due to
the dividends being unclaimed for seven consecutive years, in accordance with the IEPF rules. During the year, the Company received
applications from shareholders for claiming shares from the IEPF. The IEPF has settled applications pertaining to 26,666 shares to
respective shareholders and IEPF holds 7,26,048 shares as on March 31, 2023 on account of transfer of shares under the IEPF Rules. During
the year, the Company also transferred ₹1,15,13,013.50 as corporate benefits (dividend) arising on shares already transferred to the IEPF.
Schedule of events
42nd Annual General Meeting
Date and time
June 28, 2023,
Wednesday
4:00 p.m. IST
Mode
Video conference
and other
audio-visual means
Participation
through
video-conferencing
https://agm.onwings
pan.com/InfosysAGM
Webcast
https://www.infosys
.com/Investors/
E-voting dates
June 23, 2023 to
June 27, 2023
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 2023-24 are as follows:
Jun 30, 2023
Sep 30, 2023
Dec 31, 2023
Mar 31, 2024
Quarter ending
Jul 20, 2023
Oct 12, 2023
Jan 11, 2024
Apr 18, 2024
Jun 16, 2023 to
Jul 23, 2023
Sep 16, 2023 to
Oct 15, 2023
Dec 16, 2023 to
Jan 14, 2024
Mar 16, 2024 to
Apr 21, 2024
Board meeting and earnings
release date
Trading window closure
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.
Share transfer system
SEBI, effective April 01, 2019, barred physical transfer of shares of
listed companies and mandated transfers only through demat.
However, investors are not barred from holding shares in physical
form. We request shareholders whose shares are in physical
mode to dematerialize their shares. Shareholders holding
shares in dematerialized mode have been requested to register
their email address, bank account details and mobile number
with their depository participants. Those holding shares in
physical mode have been requested to furnish PAN, nomination,
contact details, bank account details and specimen signature
for their corresponding folios. The folios shall be frozen, if any
of these details are not available on or after October 01, 2023.
Shareholders may contact the RTA at, einward.ris@kfintech.com
and also refer details at https://www.infosys.com/investors/
shareholder-services/investors-service.html.
Investor conferences / events held in fiscal 2023
Infosys holds press meet and investor / analyst calls after every quarterly results announcement, which is accessible to all the
shareholders and general public. The Company also holds its Annual General Meeting, which is accessible to all the shareholders. The
details of these are sent to the stock exchanges and 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 and updated on the website.
9
3
9
1
7
1
7
1
Total
12
Q1
Total
10
Q2
Total
8
Q3
Total
8
Q4
Conferences / NDRs
Company events
146
Infosys Integrated Annual Report 2022-23 Legal proceedings
There are certain pending civil cases involving rival claims made
by parties seeking declaration of title and accrued benefits of the
Company’s disputed shares. Since the disputed shares relate to
the Company, Infosys Limited and share transfer agent KFin are
made pro forma defendants in these litigation matters. However,
these matters are not material in nature.
Commodity price risk or foreign exchange risk and
hedging activities
For details of foreign exchange risk and hedging activities, refer
to form 20-F which is available at https://www.infosys.com/
investors/reports-filings/annual-report/annual-reports.html.
Investor grievances and investor contacts
We have a Board-level Stakeholders Relationship Committee to
examine and redress complaints by shareholders and investors.
The status of complaints is reported to the entire Board. The
Stakeholders Relationship Committee meets as often as required
to resolve shareholder grievances.
We attended to most of the investors’ grievances and postal /
electronic communications within a period of seven days from
the date of receipt of such grievances. The exceptions have been
for cases constrained by disputes or legal impediments.
Shareholders may note that the share transfers, dividend
payments and all other investor-related activities are attended to
and processed at the office of the Company’s RTA.
For any grievances / complaints, shareholders may contact the
RTA, KFin Technologies 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, refer to
the Investor contacts.
Share capital
Holding as on March 31, 2022
420,67,38,641
Buyback of shares
6,04,26,348
414,63,12,293
ESOP allotment
22,47,751
Holding as on March 31, 2023
414,85,60,044
Category-wise shareholding as on March 31, 2023
Foreign Portfolio Investors
127,77,40,179
30.80%
Mutual Funds
16.05% 66,58,05,972
Others
18,10,67,296
4.36%
Insurance Companies
47,54,56,450
11.46%
Total
414,85,60,044
Promoters & Promoter Group
13.30% 55,16,82,338
American Depositary Receipts
12.19% 50,57,90,851
Resident Individuals (Public)
11.84% 49,10,16,958
Listing on stock exchanges
Codes
Exchange
Reuters
Bloomberg
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 2023 have been paid for all of the stock
exchanges in India and overseas.
ISIN Code for ADS: US4567881085
ISIN Code for Indian equity shares: INE009A01021
147
Infosys Integrated Annual Report 2022-23 Corporate governance report
Shareholders holding more than 1% of the shares as on March 31, 2023
The details of shareholders (non-promoters and non-ADR holders) holding more than 1% (PAN-based) of the equity as on March 31,
2023 are as follows:
Name of the shareholder
% (percentage of holding)
Life Insurance Corporation of India
7.19%
SBI Mutual Fund
3.95%
Government of Singapore
ICICI Prudential Mutual Fund
NPS Trust
HDFC Mutual Fund
UTI Mutual Fund
2.29%
2.24%
1.56%
1.50%
1.47%
Government Pension Fund Global
1.27%
Vanguard Emerging Markets Stock Index Fund,
A Series of Vanguard International Equity Index Fund
1.18%
ICICI Prudential Life Insurance Company Limited
1.14%
Vanguard Total International Stock Index Fund
1.13%
SBI Life Insurance Company Limited
1.04%
Aditya Birla Sun Life Mutual Fund
1.02%
Distribution of shareholding as on March 31, 2023
No. of shares
29,82,44,977
16,38,20,022
9,50,49,447
9,31,07,863
6,49,22,206
6,22,63,984
6,09,63,756
5,25,22,480
4,91,23,446
4,71,80,165
4,68,52,400
4,31,98,008
4,24,37,168
No. of shares held No. of holders
% to holders
% to equity
No. of shares
1-1
2-10
1,95,271
9,86,323
11-50
9,64,745
51-100
3,32,458
101-200
2,17,245
201-500
1,45,266
501-1,000
1,001-5,000
5,001-10,000
10,001 and above
50,963
35,145
4,893
7,718
Total
29,40,027
100%
Dematerialization of shares and liquidity
% to total
equity
99.90%
0.10%
Demat mode
Physical mode
33.55%
32.81%
6.64%
11.31%
7.39%
4.94%
1.73%
1.20%
0.17%
0.26%
0.00%
0.14%
0.63%
0.62%
0.79%
1.12%
0.89%
1.73%
0.83%
1,95,271
58,00,953
2,60,41,493
2,57,97,439
3,26,58,619
4,64,85,673
3,67,16,723
7,18,80,337
3,44,27,217
93.25%
386,85,56,319
100%
414,85,60,044
Shareholders (1)
29,40,027
Shares
414,85,60,044
29,39,742
285
414,45,16,086
40,43,958
(1) The number of shareholders based on demat accounts is 29,40,027 and based on PAN is 28,01,574 as on March 31, 2023. There will be a difference in the
number of shareholders based on demat and PAN, since shareholders can have multiple demat accounts under a single PAN.
148
Infosys Integrated Annual Report 2022-23 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 as follows:
2022-23
Month
April
May
June
July
August
September
October
November
December
January
February
March
Total
BSE
High (₹)
Low (₹)
Volume (A)
1,909.95
1,589.25
1,555.05
1,555.00
1,631.00
1,553.00
1,546.20
1,653.00
1,672.45
1,568.80
1,620.00
1,520.00
1,550.40
1,399.50
1,367.20
1,410.90
1,450.00
1,355.50
1,387.00
1,482.00
1,483.00
1,444.00
1,481.30
1,365.00
75,67,806
1,19,68,147
63,75,880
1,01,07,973
87,87,826
1,00,00,625
1,56,08,333
89,03,167
48,87,640
66,29,009
42,59,217
53,07,093
10,04,02,716
High (₹)
1,910.30
1,589.40
1,555.00
1,555.70
1,631.35
1,553.00
1,546.40
1,653.50
1,672.60
1,568.80
1,619.75
1,520.40
NSE
Total volume
Low (₹)
Volume (B)
(A+B) (No.)
1,550.00
1,399.25
1,367.15
1,410.65
1,450.00
1,355.00
1,386.00
1,485.00
1,482.45
1,446.50
1,481.30
1,364.55
17,06,96,670
17,82,64,476
17,60,39,201
18,80,07,348
13,91,44,802
14,55,20,682
11,51,24,860
12,52,32,833
9,23,98,681
10,11,86,507
17,14,80,153
18,14,80,778
10,51,06,395
12,07,14,728
9,19,35,458
10,08,38,625
12,76,79,808
13,25,67,448
14,20,93,979
14,87,22,988
9,93,46,960
10,36,06,177
14,26,69,535
14,79,76,628
157,37,16,502
167,41,19,218
The volume traded / outstanding shares (%) in the last three fiscals is as follows:
Fiscal
2022-23
2021-22
2020-21
Volume (BSE)
Volume (NSE)
Volume (BSE +NSE)
3
3
4
43
44
74
46
47
78
Note: The number of shares outstanding was 364,27,69,193 as of March 31, 2023. ADSs have been excluded for the purpose of this calculation.
Stock market data – NYSE
2022-23
Month
April
May
June
July
August
September
October
November
December
January
February
March
Total
Note:
High ($)
Low ($)
High (`)
Low (`)
Volume (No.)
25.13
20.79
19.64
19.60
20.60
19.41
18.88
20.36
20.57
19.11
19.59
18.34
19.75
17.90
17.52
17.63
18.28
16.39
16.82
18.08
17.69
17.47
17.93
16.59
1,902.59
1,582.53
1,525.40
1,556.63
1,637.08
1,546.01
1,559.87
1,660.56
1,668.23
1,547.34
1,618.13
1,500.21
1,507.12
1,386.36
1,367.26
1,405.99
1,462.18
1,330.54
1,374.96
1,497.75
1,464.91
1,440.51
1,481.86
1,369.34
25,58,78,594
23,45,73,990
19,46,36,089
20,06,18,614
14,92,08,756
25,57,33,063
21,47,44,671
12,95,92,391
16,09,69,127
15,98,90,015
14,56,85,967
20,27,80,820
230,43,12,097
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, 2023, was
50,57,90,851. The percentage of volume traded for the year at NYSE, to the total float was 456%.
149
Infosys Integrated Annual Report 2022-23
Corporate governance report
ADS premium compared to price quoted on NSE
(`)
1,800
1,500
1,200
900
600
300
-
ADS(`)
Equity(`)
Premium/
(Discount)
April
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
1,666.83
1,497.30
1,462.72
1,487.23
1,567.82
1,429.90
1,476.27
1,572.73
1,540.35
1,507.73
1,564.84
1,428.40
1,693.68
1,500.12
1,462.88
1,485.00
1,567.30
1,432.51
1,475.70
1,576.85
1,554.57
1,513.53
1,572.89
1,429.33
-1.6%
-0.2%
0.0%
0.1%
0.0%
-0.2%
0.0%
-0.3%
-0.9%
-0.4%
-0.5%
-0.1%
(%)
2.0
1.0
0.0
-1.0
-2.0
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, 2023, there were 1,15,944 record holders of ADRs evidencing 50,57,90,851 ADSs (1 ADS = 1 equity share).
Infosys share price versus the NSE Nifty 50 index
120
100
80
60
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Note: Infosys share price and NSE Nifty 50 index values on April 1, 2022 have been baselined to 100.
Infosys
NIFTY 50
150
Infosys Integrated Annual Report 2022-23 Infosys share price versus the S&P BSE Sensex (Sensex)
120
100
80
60
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Note: Infosys share price and Sensex values on April 1, 2022 have been baselined to 100.
Infosys
BSE Sesnsex
Credit ratings
There has been no change in the credit ratings of Infosys from
any of the agencies during the year.
Rating agency
Rating
Outlook
Moody’s
Standard & Poor’s
Dun & Bradstreet
CRISIL
Baa1
A
5A1
AAA
Stable
Stable
Condition: Strong
Stable
Shareholders
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 consolidated financial statements under the
IFRS (INR), and audited condensed consolidated financial
statements under the IFRS (USD). 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.
• 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.
Registered office and global locations
The address of our registered office is Electronics City, Hosur
Road, Bengaluru 560100, Karnataka, India.
Our operations are spread across 274 locations in 56 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-presence2023.pdf for details related to
our global locations.
Subsidiaries
As on March 31, 2023, we have 28 direct subsidiaries and 70
step-down subsidiaries. The Company does not have any
material subsidiary.
151
Infosys Integrated Annual Report 2022-23 Corporate governance report
General body meetings
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,
2022
41st AGM: June 25,
2022 at 4 p.m. IST
Held through video
conferencing /
other audio-visual
means
1. Reappointment of D. Sundaram as an
independent director
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
None
Held through video
conferencing /
other audio-visual
means
Extraordinary General Meeting
No extraordinary general meeting of the members was held during fiscal 2023.
Web link for webcast /
transcripts
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2022/agm-2022-
transcript.pdf
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
Postal ballot
During the year, the Company passed two special resolutions through postal ballot through e-voting.
Date of postal
ballot notice
Resolution passed
Approval date
Scrutinizer
Link for postal ballot notice
and results
October 28,
2022
Approval for the Buyback of
Equity Shares of the Company
December 02, 2022
February 28,
2023
Appointment of Govind Iyer
(DIN: 00169343) as an
Independent Director
of the Company
March 31, 2023
Hemanth, Holla & Co., (Membership
No. FCS 6374) (CP No. 6519)
Practicing Company Secretaries.
https://www.infosys.com/
investors/shareholder-
services/postal-ballot.html
Hemanth, Holla & Co., (Membership
No. FCS 6374) (CP No. 6519)
Practicing Company Secretaries.
https://www.infosys.com/
investors/shareholder-
services/postal-ballot.html
Procedure for postal ballot
The postal ballot was carried out as per the provisions of Sections
108 and 110 and other applicable provisions of the Act, read with
the Rules framed thereunder and applicable circulars issued by
the Ministry of Corporate Affairs from time to time.
Details of special resolution proposed to be transacted
through postal ballot
None of the businesses proposed to be transacted at
the ensuing AGM requires passing of a special resolution
through postal ballot.
152
Infosys Integrated Annual Report 2022-23 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.
Legal compliance
Details of non-compliance
No penalty has been imposed by any stock
exchange, SEBI or SEC, nor has there been
any instance of non-compliance with any legal
requirements, or on matters relating to the capital
market over the last three years.
Regulatory orders
There were no regulatory orders pertaining to the
Company for fiscal 2023.
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,
2023. 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.
Complaints pertaining to sexual
harassment
The details of complaints filed, disposed
of and pending during the financial year
pertaining to sexual harassment are provided in
the Business Responsibility and Sustainability Report of
this Integrated Annual Report.
Prevention of insider trading
The Company has amended the Code on fair disclosure and
investor relations effective April 13, 2023. 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
Certificate of non-disqualification of directors
Makarand M. Joshi of Makarand M. Joshi & Co., 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.
153
Infosys Integrated Annual Report 2022-23 Corporate governance report
Annexure A: Certificate of non-disqualification of directors
C E R T I F I C A T E
[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the Securities Exchange and Board of India
(Listing Obligations and Disclosure Requirements) Regulations,2015]
To,
The Members,
Infosys Limited
Electronics City, Hosur Road,
Bengaluru, Karnataka-560100, India
We have examined the relevant disclosures provided by the Directors (as enlisted in Table A) to Infosys Limited bearing
CIN: L85110KA1981PLC013115, having registered office at Electronics City, Hosur Road, Bengaluru, Karnataka-560100, India (hereinafter
referred to as “the Company”) for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para C
Clause 10 (i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our knowledge and based on the following:
i.
ii.
Documents available on the website of the Ministry of Corporate Affairs;
Verification of Directors Identification Number (DIN) status on the website of the Ministry of Corporate Affairs;
iii. Disclosures provided by the Directors (as enlisted in Table A) to the Company; and
iv. Debarment list of the Bombay Stock Exchange and the National Stock Exchange,
we hereby certify that none of the Directors on the Board of the Company (as enlisted in Table A) have been debarred or disqualified
from being appointed or continuing as directors of the Company by the Securities and Exchange Board of India, Ministry of Corporate
Affairs or any such other statutory authority as on March 31, 2023.
Director Identification Number (DIN)
Date of appointment in the Company
00041245
01876159
00016304
08177291
00019437
09101763
08733837
00169343
August 24, 2017
January 02, 2018
July 14, 2017
July 13, 2018
July 15, 2020
March 25, 2021
April 20, 2020
January 12, 2023
For Makarand M. Joshi & Co.
Company Secretaries
Sd/-
Makarand M. Joshi
Partner
FCS No. 5533
CP No. 3662
PR: 640 / 2019
UDIN: F005533E000085437
Table A
Name of the Directors
Nandan M. Nilekani
Salil Parekh
D. Sundaram
Michael Gibbs
Bobby Parikh
Chitra Nayak
Uri Levine
Govind Iyer
Place: Mumbai
Date: April 13, 2023
154
Infosys Integrated Annual Report 2022-23 Statutory reports
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
VP – Head – Diversity and Inclusion
Tel: +91 80 2852 0261
Email: arunacnewton@infosys.com
Registrar and share transfer agents
KFin Technologies Limited
Unit: Infosys 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
Tel: +91 22 23002041/23002033
155
Infosys Integrated Annual Report 2022-23 Investor contacts
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: (022) 26598100-14 / 66418100
BSE Ltd.
Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai 400 001, India
Tel: +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
156
Infosys Integrated Annual Report 2022-23 Statutory reports
Risk management report
“ Risks related to the geo-political changes, uncertainties in the economy, supply chain constraints, talent
availability, technology disruption and inflation have impacted businesses across the world during the fiscal
year. Our enterprise risk management processes were instrumental in keeping the Company focused on our
most important priorities toward all our stakeholders.”
Deepak Bhalla
EVP – 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
– strategy and strategy execution; operational; and legal and
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, human rights, 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,
code 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.
157
Infosys Integrated Annual Report 2022-23 Risk management report
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.
158
Infosys Integrated Annual Report 2022-23
Highlights of fiscal 2023
During fiscal 2023, we extended the adoption of the integrated
ERM framework across the organization, strengthening our risk
management program 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 geo-political
scenarios; uncertainties in the economy; inflation; technology
disruption and innovation; talent availability; cybersecurity; data
protection and privacy; ESG; contractual liabilities; and complex
and evolving regulatory environment.
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 and
emerging risks are described below along with the Company’s
approach to mitigate them.
Key / Emerging risks
Impact on Company
Mitigation / Opportunity
Geo-political, macro-
economic or health
events
•
• Unfavorable geo-political, economic or health events
may result in currency volatility and reduced spend
on technology products and services which may
adversely impact demand for our offerings which in
turn may impact our growth and profitability.
Emerging risk aspect: Geo-political, economic or
health events are dynamic in nature and constantly
evolving. Uncertainty about new changes therefore
sometimes makes it difficult to predict and assess the
impact.
Impacted capitals: Financial, Social & Relationship and
Human
•
Commoditization of
services and heightened
competitive landscape
Technology disruption
and innovation
Talent supply constraints
and Hybrid working
model
Cybersecurity
•
•
•
•
•
•
•
•
If we are unable to differentiate our offerings and
manage customer expectations in times of intense
competition in the market for technology services,
this could affect our win rates and pricing, reduce our
market share and decrease our revenue and profits.
Impacted capitals: Financial and Intellectual
Emerging risk: Not having the right framework
and approach to identify, invest in, incubate and
operationalize new services and offerings that are
in line with technology changes, client preferences
and market expectations may disrupt our value
proposition and reduce our relevance to customers,
impacting our revenue and profitability. The speed
and nature of technological changes make it difficult
to predict the trend.
Impacted capitals: Financial, Human and Intellectual
If we are unable to hire, engage and retain technology
and management talent, manage leadership
succession and transition, respect and protect human
rights, continuously evolve our hybrid work model
in response to changing needs and expectations, it
could impact our reputation, ability to staff projects or
execute large and complex programs, or optimize cost
structures.
Impacted capitals: Financial, Human and Intellectual
Cyber attacks that breach our information network
or failure to protect sensitive and confidential
information of our stakeholders in accordance with
applicable laws and contractual obligations may
adversely impact our operations and client satisfaction
or result in significant regulatory penalties.
Impacted capitals: Financial, Human, Intellectual and
Manufactured
•
Broad-based growth to reduce concentration in
any single region, client or industry
• Operational agility to assess and respond to
situations, including enablement of remote
working, working out of multiple DCs /
locations, etc.
Currency hedging
•
• Opportunity – Clients are looking for IT projects
which can help them take out costs.
• Differentiation though innovation and industry
solutions
Increased automation
•
•
Investment in launching innovative new offerings
• A broad portfolio of interconnected services and
solutions
Focused growth of digital capabilities
Innovation framework
Investments in research and development
Robust alliance strategy
Consulting and industry / domain knowledge led
solutions
Reskilling program for employees into newer
technologies and methodologies
Large deal program
•
• Opportunity – Identify, develop and deploy
new offerings to customers leveraging next-
generation technologies.
•
•
•
•
•
•
Employee engagement and support
•
• Holistic employee retention and recognition
efforts
Focus on career and leadership development
•
• Hybrid operational model that balances client
requirements, evolving employee preferences,
legal requirements and information security risks
•
Robust cybersecurity framework and controls
• Multi-layered governance process with executive
and Board oversight
Continued investment in technologies
•
•
Readiness to respond to incidents
• Awareness programs and trainings
• Opportunity – Cybersecurity services to the
customer
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Infosys Integrated Annual Report 2022-23 Risk management report
Key / Emerging risks
Impact on Company
Mitigation / Opportunity
Data protection and
privacy
Cost inflation / Inability
to improve margin
ESG
Contractual liabilities
Complex and evolving
regulatory environment
•
•
•
•
•
•
•
•
•
•
•
•
Failure to protect personal and sensitive information
of our stakeholders in accordance with applicable
laws may impact our operations or result in significant
regulatory penalties.
Impacted capitals: Financial, Human and Intellectual
Robust data privacy framework and controls
Privacy by design
•
•
• Multi-layered governance process with executive
and Board oversight
Preparedness for response to incidents
•
• Awareness programs and trainings
•
Region-specific data protection controls and
awareness campaigns
If we are unable to run our operations effectively and
with sustainable cost levers, our long-term profitability
may be adversely affected.
Impacted capitals: Financial
•
Effective operations with sustainable cost
optimization levers
• Automation and planned capex program focused
on technology adoption
If we are unable to demonstrate the outcome of
our ESG program covering various areas such as
climate change, GHG reductions, digital skilling,
empowering local communities, diversity, responsible
supply chains, compliance and governance, etc., our
operations, reputation, access to capital and longer-
term financial stability could be adversely impacted.
Emerging risk aspect: Expectations on ESG may
change in future due to evolving stakeholders'
expectations and disclosure requirements.
Impacted capitals: Financial, Human, Intellectual,
Natural, Social & Relationship and Manufactured
Risk of clients demanding more favorable terms
including onerous clauses related to the liability and
our inability to adhere to contractual obligations
with customers may lead to litigations, fines, and
may adversely impact our reputation, revenue and
profitability.
Impacted capitals: Social & Relationship and Financial
If we are not able to comply with the existing complex
regulatory landscape (e.g., immigration, wages, tax,
sanctions), it could result in investigations, regulatory
inquiries, litigation, fines, and negative client
sentiments.
Emerging risk aspect: Evolving regulatory compliance,
corporate governance and public disclosure
requirements add uncertainty to our compliance
policies.
Impacted capitals: Financial, Human, Intellectual,
Social & Relationship and Natural
•
•
ESG 2030 goals and execution roadmap
Board level governance and oversight through
dedicated ESG committee of the Board
• Opportunity – Climate change related solutions
and services to the customer.
•
Engaging clients on contractual terms through
dedicated in-house team
•
Contract legal playbook with risk framework
• Multi-layered governance process for contract
approval
• Dedicated teams to adhere, monitor and audit
•
•
contractual obligations
Comprehensive Board level monitoring,
reporting and governance
Comprehensive compliance framework, controls
and program
• Awareness programs and trainings
Periodic compliance certification
•
Comprehensive monitoring, reporting and
•
governance including Board oversight
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
and experience; continual improvement and compliance; cyber
resilience; and building and maintaining a positive cybersecurity
culture within 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
highlighting key risks to the executive leadership.
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Business Responsibility and Sustainability Report
Infosys has always placed sustainability at the heart of
its business approach. Our ability to fulfil and exceed our
responsibilities to our stakeholders is a testament to our
commitment. We have balanced our business success
with unwavering focus on exemplary governance and
responsiveness to the needs of the environment and society.
As an early proponent of responsible business, we readily
embraced our commitment to integrate environmental,
social and governance (ESG) factors into our operations.
In fiscal 2013, we were among the first companies to publish
the Business Responsibility Report (BRR).
Infosys has adopted the Business Responsibility and
Sustainability Report (BRSR) for fiscal 2023 to provide
enhanced disclosures of our ESG practices and priorities.
The BRSR follows the NGRBC principles on the social,
environmental and economic responsibilities of business.
Our BRSR includes our responses to questions about our
practices and performance on key principles defined by
Regulation 34(2)(f) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015, as amended from
time to time, which cover topics across the ESG dimensions.
Infosys Integrated Annual Report 2022-23
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I Company details
Section A: General Disclosure
1. Corporate Identity Number (CIN) of the company
L85110KA1981PLC013115
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
askus@infosys.com
+91-80-2852 0261
www.infosys.com
9. Financial year for which reporting is being done
April 2022-March 2023
10. Name of the Stock Exchange(s) where shares are listed
In India, company’s equity shares are listed on the
* BSE Limited (BSE)
* National Stock Exchange of India Limited (NSE)
The ADSs are listed on the New York Stock Exchange in the US
11. Paid-up Capital (1)
12. Name and contact details (telephone, email address) of the person who may be
contacted in case of any queries on the BRSR report
`2,074 crore
ARUNA C. NEWTON
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.
(1) As per the Standalone financial statements under Ind AS
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II Products / services
14. Details of business activities (accounting for 90% of the turnover)
S. No.
Description of main activity
Description of business activity
% of turnover of the entity
1
Software and IT consulting (GICS classification – Information
Technology – Software and Services)
15. Products / services sold by the entity (accounting for 90% of the entity’s turnover)
Software application development and
maintenance, IT consulting. Further
details are provided in the Management
Discussion and Analysis section of this
Integrated Annual Report.
93.7
Product / service
NIC code
% of total turnover contributed
Software application development and maintenance,
IT consulting
620
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
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Location
National
International
17. Markets served by the entity
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?
97.2% (1)
(1) Based on Standalone financial statements under Ind AS
c. Types of customers and beneficiaries
Business to business
1
6
3
93.7
Total
274
Number
12
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IV Employees
18. Details as at the end of fiscal:
a. Employees
S. No.
Particulars
Employees
1
2
3
1
2
3
Permanent (D)
Other than permanent (1) (E)
Total employees (D + E)
Differently-abled employees (2)
Permanent (D)
Other than permanent (E)
Total employees (D + E)
As on March 31, 2023
Total (A)
Male
Female
3,43,234
24,891
3,68,125
1,357
–
1,357
No. (B)
2,07,879
20,001
2,27,880
No. (B)
1,009
–
1,009
% (B / A)
60.56
80.35
61.90
% (B / A)
74.4
–
74.4
No. (C)
1,35,355
4,890
1,40,245
No. (C)
348
–
348
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39.44
19.65
38.10
% (C / A)
25.6
–
25.6
(1) Other than permanent employees includes contractors. The entire workforce of Infosys is categorized as ‘Employees’ and none as ‘Workers’. Therefore, the information required in all sections in the
‘Workers’ category not applicable to Infosys.
(2) Employees who have voluntarily disclosed their disability.
19. Participation / Inclusion / Representation of women (including differently-abled)
Total (A)
No. and percentage of females
Board of Directors
Key Management Personnel (1)
As on March 31, 2023
8
3
No. (B)
1
0
% (B / A)
12.50
–
(1) Key Management Personnel are Chief Executive Officer and Managing Director (CEO & MD), Chief Financial Officer (CFO) and Company Secretary (CS)
Infosys Integrated Annual Report 2022-23
20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)
Turnover rate in fiscal 2023 (In %)
Turnover rate in fiscal 2022 (In %)
Turnover rate in fiscal 2021 (In %)
Permanent employees
21.1
20.6
Male
Female
Total
20.9
Male
Female
28.7
26.1
Total
27.7
Male
Female
11.3
10.2
Total
10.9
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 represents percentage of 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 of this Integrated Annual Reportfor 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:
(ii) Turnover (in ` crore) (1)
(iii) Net worth (in ` crore) (1)
(1) As per the standalone financial statements under Ind AS
VII. Transparency and disclosures compliances
Yes
1,24,014
67,745
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, governments, 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.
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Financial implications of the risk
(Indicate positive or negative
implications)
Negative : Increased operating
costs in meeting the environmental
standards.
Positive : Scope to improve Infosys’
competitiveness and capitalize
on the shifting client preferences
by leveraging our expertise in
sustainability, low-carbon transition,
and digital / IT to help our clients in
their sustainability and low-carbon
journeys
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24. 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
S.
No.
Material issue
identified
Indicate
whether risk
or opportunity
(R / O)
Rationale for identifying the risk /
opportunity
In case of risk, approach to adapt or mitigate
Risk
– Climate change risks are increasingly
– A holistic approach towards carbon
manifesting in our business as
strategic risks, physical risks, and
transitional risks (market and
compliance) that, if not managed
adequately, could adversely affect
our operations, reputation, and
profitability.
neutrality each year including energy
efficiency, renewable energy and carbon
offsets
– Enabling the creation of resilient physical
infrastructure to address extreme weather
conditions, while maintaining operational
efficiencies
Opportunity
– Increased revenue through
1
2
3
4
Environment :
Climate
change
Environment :
Engaging
clients on
climate
actions
through our
solutions
Risk
Societal :
Facilitating
best-in-class
employee
experience
Opportunity
Societal :
Tech for Good
platforms and
solutions for
e-governance,
healthcare
and education
development and / or expansion
of services to help our customers
manage their climate change risks.
– Savings through lower-emission
energy sources
– Global leadership in addressing
climate change through advocacy
– Inability to facilitate best-in-class
employee experience may impact
our ability to attract, hire, train,
engage and retain talent.
– The development and adoption of
advanced technologies, including
smart automation and artificial
intelligence, have the potential
to increase productivity and GDP
growth and solve larger challenges
for the common good, while
facilitating the achievement of
the UN SDGs. Digital technologies
and platforms have already been
used successfully in the consumer
technology space, and there is an
opportunity to leverage these to
ensure social good.
– Employee engagement and support
– Holistic employee retention and recognition
efforts
Negative : Impact on employer
reputation, increased cost of
talent, etc.
– Focus on career and leadership development
– Occupational health and safety measures
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.
Infosys Integrated Annual Report 2022-23
S.
No.
Material issue
identified
Indicate
whether risk
or opportunity
(R / O)
Rationale for identifying the risk /
opportunity
In case of risk, approach to adapt or mitigate
5
6
Governance :
Data
privacy and
information
management
Governance :
Being
recognized
as industry
leader in our
information
security
practices
Risk
– Cyber attacks that breach our
– Robust cybersecurity and data privacy
information network and / or failure
to protect sensitive and confidential
information of our stakeholders in
accordance with applicable laws and
contractual obligations may impact
our operations and client satisfaction
or result in significant regulatory
penalties.
frameworks and controls
– Multi-layered governance process with
oversight by the executive and the Board
– Continued investment in technology
– Readiness to respond to incidents
– Awareness programs and trainings
– Privacy by design
– Region-specific data protection controls and
awareness campaigns
Opportunity
– Increasing revenue from
cybersecurity service offerings and
solutions
– Being recognized as a industry leader
in our information security practices
and adoption of leading data
privacy standards across all global
operations will result in higher client
confidence.
Financial implications of the risk
(Indicate positive or negative
implications)
Negative : Increased operational cost
for technological investments and
hiring and training talent
Positive : Minimize cybersecurity and
data privacy breach threats to Infosys
and our customers through advanced
cybersecurity solutions and adoption
of leading data privacy standards
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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
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)
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.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Refer to the
Whistleblower
Policy,
Infosys Code of
Conduct and
Ethics
Refer to the
Responsible
Supply Chain
and Supplier
Diversity Policy
Refer to
Infosys Code
of Conduct
and Ethics
Refer to our
CSR Policy
and ESG
vision 2030
Refer to our
HSE Policy
Refer to our
ESG vision
2030
Refer to
our Privacy
Statement
Refer to our
CSR Policy and
Responsible
Supply Chain
and Supplier
Diversity Policy
Refer to our
Responsible
Supply Chain
and Supplier
Diversity
Policy and
Infosys Code of
Conduct and
Ethics
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
ISO 9001,
GRI Standard
2021, UNGC
Principles
ISO 9001, GRI
Standard 2021,
UN SDGs
ISO 9001, GRI
Standard 2021,
ISO 27001,
ISO 27701,
SASB
ISO 9001, GRI
Standard 2021,
ISO 14001
ISO 9001, GRI
Standard 2021,
UNGC Principles,
OECD-Principles
of Corporate
Governance,
UN SDGs,
National
Guidelines on
Responsible
Business
Conduct
(NGRBC)
ISO 9001,
GRI Standard
2021, ISO
45001,
Universal
Declaration
of Human
Rights, ILO
Declaration
on
Fundamental
Principles
and Rights
at Work,
UN Guiding
Principles on
Business and
Human Rights
ISO 9001,
GRI Standard
2021
ISO 9001, GRI
Standard 2021,
Universal
Declaration
of Human
Rights, ILO
Declaration on
Fundamental
Principles
and Rights at
Work, UNGC
Principles
ISO 9001, GRI
Standard 2021,
ISO 14001,
PAS 2060:2014,
ISO 45001,
ISO22301,
SASB,
TCFD, UN
SDGs, Carbon
Disclosure
Project (CDP)
Infosys Integrated Annual Report 2022-23
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/index.html
Yes. The details of performance on our ESG goals is available in the chapters Approaching value creation and Delivering value in this Integrated Annual
Report.
7. Statement by director responsible for the Business Responsibility Report, highlighting ESG related challenges, targets and achievements
“Infosys is committed to make the business 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 organization for diverse talent with an inclusive workplace and community strategies to leverage technology for good.”
Governance, leadership and oversight
Salil Parekh
Chief Executive Officer and Managing Director
Information on ESG-related challenges, targets and achievements is available in the chapters Approaching value creation and Delivering value in this Integrated Annual Report.
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 report in the Corporate governance
report of this 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 report in the Corporate governance report of this Integrated Annual Report.
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
Performance against above policies and follow
up action
Compliance with statutory requirements of
relevance to the principles, and, rectification of
any non-compliance
Committees of the Board
Annually
Committee of the Board
Quarterly
Principles
P1
P2
P3
P4
P5
P6
P7
P8
P9
Answer
Yes. BVC, DNV and BSI
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.
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12. If answer to
question (1) above is
“No” i.e. not all principles
are covered by a policy,
reasons to be stated
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
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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
Board of Directors and Board
Committees
Key Managerial Personnel (KMP) (1)
Employees other than BoD and KMPs (1)
Total number of training and
awareness programs held
Topics / principles covered under the training and
its impact
% coverage by awareness programs
Refer to the Training of board members section of the Corporate governance report
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15
Climate change, environmental sustainability, social
sustainability, Infosys Code of Conduct and Ethics,
data privacy, cybersecurity
Climate change, environmental sustainability, social
sustainability, Infosys Code of Conduct and Ethics,
data privacy, cybersecurity
100
100
100
(1) We have an exclusive learning channel on ESG on Lex, our internal learning platform.
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law
enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in
Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
There are no monetary or non-monetary actions on the Company or its directors / KMPs with regulators / law enforcement agencies / judicial institutions, in the financial year.
3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where monetary or non-monetary action has been appealed.
Not applicable
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 Anti-Bribery and Anti-Corruption (ABAC) policy (available in the Company intranet), 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 by any law enforcement agency for the charges of bribery / corruption against directors / KMPs / employees that have been
brought to our attention.
6. Details of complaints with regard to conflict of interest:
1
7
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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
Not applicable
1. Awareness programs conducted for value chain partners on any of the principles during the financial year:
Leadership indicators
Segment
Value chain partners
Total number of awareness
programs held
Topics / principles covered under the training (1)
% of value chain partners covered
under the awareness programs
2
Governance, ethics and compliance with law, fair
business practices, labor practices and human rights,
health and safety, and environment
10
(1) We have launched an exclusive ESG learning portal for our suppliers.
2. Does the entity have processes in place to avoid / manage conflicts of interest involving members of the Board? Provide details of the processes in place to avoid /
manage conflict of interests involving members of the Board.
Yes. The Company receives periodic / ongoing declarations from its Board members, 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 individuals / entities.
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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.
R&D (1)
Capex (1)
Fiscal 2022-23 (In %)
Fiscal 2021-22 (In %)
Details of improvements in environmental and
social impacts
26.7
3.1
24.3
3.0
Education, training and assessment of employees to
upskill and reskill and technology spend to improve
environmental and social products and processes.
Efficient equipment for cooling, lighting, renewable
energy, water management, waste management and
sustainable materials.
(1) Based on standalone financial statements under Ind AS
2a. Does the company have procedures in place for sustainable sourcing? (Yes / No)
Yes. We are an IT services company, we do not source raw materials. However, all our procurement follows the principles of sustainable sourcing.
2b. If yes, what percentage of inputs were sourced sustainably?
Not applicable. 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.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No).
If yes, 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
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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?
Not applicable
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
Not applicable
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).
Not applicable. We are an IT services company, we don’t manufacture any products.
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.
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PRINCIPLE 3:
Businesses should respect and promote the wellbeing of all employees, including those in their value chains
1a. Details of measures for the well-being of employees
Essential indicators
% of employees covered
Category
Total (A)
Health insurance
Accident insurance
Maternity benefits
Paternity benefits
Day care facilities (2)
Number (B) % (B / A)
Number (C) % (C / A)
Number (D)
% (D / A)
Number (E)
% (E / A)
Number (F) % (F / A)
Permanent employees (1)
1,73,086
1,73,086
1,13,084
1,13,084
2,86,170
2,86,170
100
100
100
1,73,086
1,13,084
2,86,170
100
100
100
NA
1,13,084
1,13,084
NA
100
100
1,73,086
NA
1,73,086
100
NA
100
–
–
–
–
–
–
Other than permanent employees
Vendors and contractors are required to adhere to statutory compliances as per the State rules
Male
Female
Total
Male
Female
Total
(1) Includes only employees whose base location is India
(2) Post-covid, owing to a hybrid work model available to employees, we did not see a demand for day care facilities, this year.
2. Details of retirement benefits, for current and previous financial years
Benefits
PF
Gratuity
ESI (1)
Others – superannuation (2)
Fiscal 2023
Fiscal 2022
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
11
NA
NA
NA
NA
Y
Y
Y
Y
100
100
9
9
NA
NA
NA
NA
Y
Y
Y
Y
This table represents retirement benefits for the employees working in India. All our employees working outside India are eligible for retirement benefits according to applicable laws in the regions
they operate.
(1) All eligible employees covered under the Employees State Insurance Act (“ESIC”), 1948 are provided the benefit.
(2) Eligible employees are participants to Superannuation retirement benefits
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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 entities are accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016.
• Accessible infrastructure: At Infosys, accessibility principles are integrated into the building and campus infrastructure as part of the design. It is treated as an essential aspect
along with other key principles such as productivity, health and wellness, and sustainability. From parking spaces to campus entrances and building-level interventions,
accessibility in our infrastructure goes beyond regulatory requirements to ensure our buildings cater to the needs of all users and society. Employee feedback is collected through
surveys to evaluate effectiveness of design and facilitate continuous improvement.
• Local transport allowance: As part of our commitment to facilitating accessibility, we also provide special transport allowance to our employees in India acknowledging the fact
that every differently-abled individual will have a separate accessible commute requirement.
• We also provide loan facility to differently-abled employees to enable them to buy assistive devices.
• The Practice Guidelines enable the various functionaries in the organization to develop inclusive practices in their function to integrate differently-abled people.
• Facilitating careers: Continuing our focus on addressing ‘aspirations’ we have also challenged many traditional biases and successfully placed differently-abled employees onsite
at client locations and projects. Our offshore development centers of service delivery, quality, solution design and centers of excellence employ people from entry level to senior
manager.
• Accessibility lab: The digital accessibility learning suite of programs and certification enables engineers to gain a deeper understanding of accessibility needs of differently-
abled employees to build accessible solutions. Infosys’ Accessibility Testing Tool (iATT) has been listed as one of w3.org’s recommended tools. iATT is an intelligent accessibility
compliance analyzer with a robust rules engine and exhaustive features that enable intuitive data to facilitate accessibility analysis.
• The Infyability employee resource group provides a great opportunity to strengthen communication and awareness, and most importantly, workplace support and inclusion of
differently-abled employees.
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.
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5. Return to work and retention rates of employees that took parental leave.
Gender
Male
Female
Permanent employees – fiscal 2023
Permanent employees – fiscal 2022
Return to work rate (In %)
Retention rate (In %) *
Return to work rate (In %)
Retention rate (In %) *
100
99
70
68
100
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80
77
Based on the recommendations of GRI standard 401-3
* Reasons for attrition could be varied.
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 and contract staff have access to several forums where they can highlight matters or concerns faced at the workplace. These are
resolved through a well-established and robust grievance resolution mechanism comprising resolution hubs.
For more information, refer to Resolution hubs available in the Management Discussion and Analysis section of this Integrated Annual Report.
Infosys Integrated Annual Report 2022-23
7. Membership of employees and workers in association(s) or unions recognized by the listed entity:
We recognize our employees’ rights 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 with internal employee resource groups and seek representation, to bargain or not bargain
collectively in accordance with local laws.
Category
Total employees in
respective category
(A)
Fiscal 2023
No. of employees
in respective
category, who
are part of
association(s) or
union (B)
% (B / A)
Total employees in
respective category
(C)
Fiscal 2022
No. of employees
in respective
category, who
are part of
association(s) or
union (D)
Total permanent employees
Male
Female
3,43,234
2,07,879
1,35,355
8,848
5,510
3,338
2.58
2.65
2.47
3,14,015
1,89,517
1,24,498
7,668
4,695
2,973
8. Details of training of employees and worker (% to total no. of employees / workers in the category):
% (D / C)
2.44
2.48
2.39
Continuous learning and reskilling have always been central to our culture. Lex, our in-house mobile first online learning platform, offers many self-learning courses that can be
accessed by employees anytime, anywhere. We also offer instructor-led training programs to our employees around the world.
Embedding a Health, Safety and Environment (HSE) culture in the organization necessitates competency development. Training includes awareness-building, mock drills, classroom
sessions and periodic demonstrations. Job-specific and generic training is conducted for contractual staff during induction and later through refresher modules.
Fiscal 2023
Total (A)
On health and safety
measures
On skill upgradation
Total (D)
Fiscal 2022
On health and safety
measures
On skill upgradation
No. (B)
% (B / A)
No. (C)
% (C / A)
No. (E)
% (E / D)
No. (F)
% (F / D)
Male
2,07,879
2,07,879
Female
1,35,355
1,35,355
Total
3,43,234
3,43,234
100
100
100
1,85,211
1,22,439
3,07,650
89.1
90.4
89.6
1,89,517
1,24,498
3,14,015
1,89,517
1,24,498
3,14,015
100
100
100
1,54,824
1,03,022
2,57,846
81.6
82.7
82.1
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9. Details of performance and career development reviews of employees and workers
Category
Employees
Male
Female
Total
Fiscal 2023
Fiscal 2022
Total (A) (1)
No. (B)
% (B / A)
Total (D) (1)
No. (E)
% (E / D)
1,33,642
87,121
2,20,763
1,33,642
87,121
2,20,763
100
100
100
1,09,198
68,154
1,77,352
1,09,198
68,154
1,77,352
100
100
100
(1) 100% of eligible employees have received performance and career development reviews.
10. Health and safety management system:
10a. Whether an occupational health and safety management system has been implemented by the entity? (Yes / No). If yes, the coverage of such system?
Yes. Infosys recognizes and accords highest priority to safety and well-being of its employees and other relevant 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 across all India locations in line with our strategy. At 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 on 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 includes quarterly evaluation of incidents that have occurred. Hazardous condition, if any, 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 and those associated with the operation of utilities and employee commute. Participation and
consultation with relevant personnel involved in the activities is ensured during the 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 on 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.
10d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
Yes.
Infosys Integrated Annual Report 2022-23
11. Details of safety-related incidents during the current fiscal
Safety incident / number
Category
Fiscal 2023 *
Fiscal 2022 *
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)
“Other than permanent employees” includes contract workmen.
* India operations
Permanent employees
Other than permanent employees
Permanent employees
Other than permanent employees
Permanent employees
Other than permanent employees
Permanent employees
Other than permanent employees
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 on 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:
0.057
1.022
5
28
0
0
0
0
0.099
0.823
1
19
0
1
0
0
Fiscal 2023
Fiscal 2022
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
26
30
14. Assessments for the year for health and safety:
0
0
6
0
0
0
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
1
7
9
% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
100
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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.
Stringent operation controls such as maker and checker control points have been deployed across the operational areas. These are also monitored on a periodic basis. There have
been no significant risks / concerns arising from assessments of health and safety practices and working conditions.
Leadership indicators
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)
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 periodically audits 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 2023
Fiscal 2022
Fiscal 2023
Fiscal 2022
Employees
Other than permanent employees
0
0
0
1
0
0
0
0
“Other than permanent employees” includes contractors.
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)
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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 (1)
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(1) In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46 suppliers as on March 31, 2023.
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 the assessments. Based on our observations during these assessments, we have launched an exclusive ESG learning portal to
promote learning and sharing of ESG best practices among our suppliers.
Infosys Integrated Annual Report 2022-23
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
We are privileged to maintain a strong relationship with our investors based on a deep understanding of their expectations and our commitment to consistently fulfil them. Client
value is one of the elements of the Infosys values, which we refer to as C-LIFE. Our employees enable us to create value for our clients and for the organization, and in return, they
enjoy fulfilling careers. Suppliers are our key stakeholders who enable us to deliver business value. Respect for 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 that the community is at the center of our sustainable business practices.
To fulfil this commitment, Infosys Foundation was established in 1996 to work in the areas of education, healthcare, women empowerment, sustainability, rural development,
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.
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 departments within the organization who are also responsible for engaging with stakeholders continually.
Infosys has 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. Read our ESG Vision 2030 document at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html.
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 based on 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.
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, especially vulnerable and marginalized stakeholder groups, in a variety of focus areas. For information on the percentage of beneficiaries of the CSR projects, refer to
Principle 8, Q.6 (Leadership Indicators) in this report. Read the Infosys Foundation annual reports at https://www.infosys.com/infosys-foundation/.
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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:
Fiscal 2023
Fiscal 2022
Total (A)
No. of employees /
workers covered (B)
% (B / A)
Total (C)
No. of employees /
workers covered (D)
% (D / C)
Employees
Permanent
Other than permanent
Total employees
3,43,234
24,891
3,68,125
3,43,234
24,891
3,68,125
100
100
100
3,14,015
25,470
3,39,485
3,14,015
25,470
3,39,485
100
100
100
2. Details of employees and workers in terms of minimum wages paid:
Infosys operates in 56 countries and employees are deployed across geographies. Legal minimum is defined based on various parameters like tenure, role, location, citizenship status
etc., and varies by country and even by states within some countries. We have defined detailed processes considering these parameters to ensure the employees are paid as per the
local regulations and we are compliant with local laws, as applicable.
Category
Fiscal 2023
Fiscal 2022
Total
employees
(A)
Equal to minimum wage
More than minimum wage
No. (B)
% (B /A)
No. (C)
% (C /A)
Total
employees
(D)
Equal to minimum wage
More than minimum wage
No. (E)
% (E /D)
No. (F)
% (F /D)
Permanent employees
1,73,086
1,13,084
2,86,170
3,856
5,040
8,896
2.23
4.46
3.11
1,69,230
1,08,044
2,77,274
97.77
95.54
96.89
1,57,132
1,04,672
2,61,804
6,974
9,208
16,182
4.44
8.80
6.18
1,50,158
95,464
2,45,622
95.56
91.20
93.82
Other than permanent employees
Vendors and contractors are required to adhere to statutory compliances as per the State rules
Male
Female
Total
Male
Female
Total
Includes only employees whose base location is India
Infosys Integrated Annual Report 2022-23
3. Details of remuneration / salary / wages, in the following format:
Male
Female
As on March 31, 2023
Number
Median remuneration / salary / wages of
respective category in ` lakhs
Board of Directors (BoD)
Key Managerial Personnel (1)
Employees (2) other than
BoD and KMP
Junior
Middle
Senior
Total
6 *
3
75,414
73,113
24,556
1,73,083
219.2
1061.7
3.6
11.3
26.3
7.9
Number
1
0
61,327
45,748
6,009
1,13,084
Median remuneration / salary / wages of
respective category in ` lakhs
253.6
–
3.6
9.9
22.2
5.2
* Remuneration to Chief Executive Officer and Managing Director (CEO and MD) has been included in KMP
(1) Key Management Personnel includes Chief Executive Officer and Managing Director (CEO and MD), Chief Financial Officer (CFO) and Company Secretary (CS)
(2) India - Infosys group
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 has 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.
For more information, refer to Resolution hubs available in the Management Discussion and Analysis section of this Integrated Annual Report.
6. Number of complaints on the following made by employees and workers:
Fiscal 2023
Fiscal 2022
Filed during
the year
Pending resolution at the
end of year
Remarks
Filed during
the year
Pending resolution at the
end of year
Remarks
Sexual harassment
78
11 *
Incidents of sexual harassment
were reviewed as per the
requirements of POSH Act in
India and as per the established
grievance redressal process.
25
0
–
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Pending
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Remarks
Filed during
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Pending
resolution at
the end of year
Remarks
Discrimination at workplace
111
9 *
Incidents pertaining to
discrimination were reviewed as
per the established grievance
redressal process for HEAR
Child labor
Forced labor / Involuntary labor
Wages
–
–
–
–
–
–
–
–
–
Other human rights-related
issues
* As on May 29, 2023, we have six ASHI cases and two cases of discrimination at workplace, pending resolution.
–
–
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82
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0
–
–
–
–
–
–
–
–
–
A robust feedback mechanism ensures employee feedback and concerns are heard and addressed in a timely manner. During fiscal 2022 and fiscal 2023, we had 660 and 707 queries / grievances,
respectively, pertaining to performance management, interpersonal conflicts and other internal policies, which were redressed as per the processes established by HEAR.
7. Mechanism to prevent adverse consequences to the complainant in discrimination and harassment cases
Infosys’ non-retaliation policy is an embodiment of our values and a cornerstone of our Code. Infosys commits to protect the complainant and and ensure that they are not
retaliated against because of any report that they raise in good faith. Infosys does not tolerate any form of retaliation (whether by a manager, co-worker or otherwise) against an
individual because he or she made a good faith report of an integrity concern. This protection also extends to anyone who assists with or cooperates in an investigation or report of
an integrity concern or question. We support those who support our values.
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
* India operations
% of your plants and offices that were assessed (by entity or statutory authorities or third parties) *
100
100
100
100
100
–
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 2022-23
Leadership indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints
At Infosys, our commitment to a values-based ethos is embodied in our Code of Conduct and Ethics. We have strengthened our approach to raising awareness of the Code. In 2022,
a digital version of the Infosys Code of Conduct and Ethics was launched. It provides user-friendly access to specific topics in an interactive way. It is a unique audio-visual experience
and is easy to navigate. The Code can also be accessed via mobile devices. The launch of the digital version of the Code is designed to help every employee understand the behavior
we expect, and the principles and values we uphold. We want to continue to build a culture of compliance, where everyone feels they are doing the right thing and prioritizing legal
and ethical choices.
The Code of Conduct and Ethics is also explained and outlined during the onboarding programs. #SwipeRightforIntegrity, an annual legal and compliance event, has evolved into a
platform to create awareness, engage in meaningful dialogues with all stakeholders, influence behavior and showcase Infosys’ culture. This has advanced the compliance and ethics
program and created greater awareness of expected behavior.
2. Details of the scope and coverage of any human rights due diligence conducted.
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization has an open-door policy. Training on Infosys values and
the Code of Conduct and Ethics, in which our stand on human rights is enshrined, is an integral part of the induction program for new employees. Every employee at Infosys is
mandated to take the Smart Awareness Quiz (SAQ) every year which contains learning and assessments on the Code and human rights-related topics. Year-round email campaigns
on human rights topics serve as a reminder to employees on the expectations of maintaining a respectful workplace for everyone. The organization commissioned a human
rights assessment of its India operations in 2022. The findings of the assessment were used to incorporate appropriate changes to the approach as detailed in our reponse to
Question 1 above.
In fiscal 2023, we launched our Responsible Supply Chain and Supplier Diversity Policy and revised our Supplier Code of Conduct. We also launched an exclusive ESG learning portal
for our suppliers, which includes topics on human rights. Our supplier ESG assessments include human rights.
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. The premise / office of the entity is accessible to differently-abled visitors, as per the requirements of the Rights of Persons with Disabilities Act.
4. Details on assessment of value chain partners:
Sexual harassment
Discrimination at workplace
Child labor
Forced labor / involuntary labor
Wages
Others – please specify
% of value chain partners (by value of business done with such partners) that were assessed (1)
31
31
31
31
31
–
(1) In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46 suppliers as on March 31, 2023.
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.
1
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Infosys Integrated Annual Report 2022-23 1
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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 2023 (in GJ)
Fiscal 2022 (in GJ)
7,12,134
38,852
Nil
7,50,986
5.11 GJ / ` cr
NA
6,15,063
35,413
Nil
6,50,476
5.35 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.
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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 2023 (in kl)
Fiscal 2022 (in kl)
NA
54,617
19,93,801
NA
2,26,261
22,74,679
22,74,679
15.50 kl / ` cr
NA
NA
1,12,910
11,29,818
NA
69,656
13,12,384
13,12,384
10.79 kl / ` 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 2022-23
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
Kg
Kg
NA
NA
NA
NA
Fiscal 2023
26,015.10
1,126.01
3,441.52
NA
NA
NA
NA
Fiscal 2022
22,907.32
2,566.01
3,899.34
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 2023
Fiscal 2022
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.
tCO2 e
tCO2 e
tCO2 e / ` cr
NA
8,593
8,965
62,352 (1)
64,398 (1)
0.48
NA
0.50
NA
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP
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7. Does the entity have any project related to reducing greenhouse gas emission? If yes, provide details.
Infosys has been carbon neutral since fiscal 2020, across all emissions (scope 1, 2 and 3), and continued to be carbon neutral in fiscal 2023. The unique approach followed
by Infosys – reduce emissions through energy efficiency, avoid emissions through adoption of clean energy, and finally offset unavoidable emissions – is a blueprint for
organizations to achieve carbon neutrality and eventually net zero. At Infosys, we believe reduction and avoidance are key to achieving global climate goals, and can be fast
tracked through skilling, adoption of automation and data-driven decision making and governance.
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 2023
Fiscal 2022
Total waste generated (in metric tonnes)
128.58
813.37
106.02
10,861.63
132.64
3.62
57.47
8,956.44
21,059.76
114.62
863.67
43.58
3,087.65
132.02
0.008
55.11
6,882.24
8,091.25
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 2023
Fiscal 2022
9,022.89
1,066.94
70.73
10,160.55
9,512.77
728.72
0
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Infosys Integrated Annual Report 2022-23
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration
(ii) Landfilling
(iii) Other disposal operations
Total
Fiscal 2023
Fiscal 2022
118.55
10,781.84
0
10,900.38
49.88
886.18
0
936.06
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.
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 nor 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:
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
Grant of Environmental
clearance for modification of
existing B#1, B#2 & B#3 at E-city
campus, Bengaluru
EC22B039KA156836
Dec 28, 2022
Yes
Yes
https://www.infosys.com/
sustainability/approvals/
documents/environmental-
clearance-blr-ecity.pdf
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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.
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 2023 (GJ)
Fiscal 2022 (GJ)
3,59,644
0
0
3,59,644
3,52,490
38,852
0
3,91,342
2,66,119
0
0
2,66,119
3,48,944
35,413
0
3,84,357
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP
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2. Provide the following details related to water discharged:
Parameter
Fiscal 2023
Fiscal 2022
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
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.
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
Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP.
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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.
Fresh water withdrawal from water-stressed Zones (High and Extremely High zones by WRI)
India
Australia
Israel Mauritius
Mexico Philippines
Romania
South
Africa
Spain
UAE
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
IT/ITES
services
(iii) Third party water (municipal and other suppliers)
13,78,980
18,050
2,732
1,987
7,203
78,825
14,324
–
54,617
–
–
–
–
–
–
–
–
–
–
–
–
–
2,26,261
–
–
–
–
–
–
–
–
–
–
–
–
16,59,858
18,050
2,732
1,987
7,203
78,825
14,324
–
–
33
–
–
33
–
–
–
–
447
1,920
–
–
–
–
447
1,920
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Particulars
Name of the area
Nature of operations
Water withdrawal, consumption and discharge in the
following format:
Parameter
Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater (open wells + borewells)
(iv) Seawater / desalinated water
(v) Others (rainwater)
Total volume of water withdrawal
(in kilolitres)
Total volume of water consumption
(in kilolitres)
Water intensity per rupee of
turnover (water consumed / turnover)
Water intensity (optional) – the relevant metric may
be selected by the entity
Water discharge by destination and level of
treatment (in kilolitres)
(i) Into surface water
No treatment
With treatment – please specify level of treatment
(ii) Into groundwater
No treatment
With treatment – please specify level of treatment
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Infosys Integrated Annual Report 2022-23
Particulars
(iii) Into 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
Fresh water withdrawal from water-stressed Zones (High and Extremely High zones by WRI)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
–
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Discharged through common sewers managed by local authorities
With treatment – please specify level of treatment
Tertiary
Total water discharged (in kilolitres)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
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 2023
1,80,196
1.23
NA
Fiscal 2022
1,83,595
1.51
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 ESG Vision for the environment is to ‘Serve the preservation of our planet by shaping and sharing technology solutions’.
Read more at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html
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. Read more in the Natural and Manufactured Capital sections of this report.
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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 Standard. 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.
The BCMS program provides a robust framework for planning, establishing, implementing, operating, monitoring, reviewing, maintaining and continually improving business
continuity measures 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
Framework, 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 in the last two years.
An efficient business continuity management policy has enabled us to maintain the status quo during disasters and pandemics as quickly and as cost-effectively as possible. It has
also helped to minimize downtime and achieve sustainable improvements in business continuity and regulatory compliance. For certification, refer to
https://www.infosys.com/about/esg/certifications.html.
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.
In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46% suppliers as on March 31, 2023.
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Infosys Integrated Annual Report 2022-23
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.
~ 50
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)
Associated Chambers of Commerce and Industry (ASSOCHAM)
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)
United States Green Building Council (USGBC)
World Economic Forum (WEF)
10
IACC (Indo Australia Chamber of Commerce)
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
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, Infosys
focuses on developing and maintaining partnerships with relevant government officials, business organizations, technology industry associations, educational institutions, and
community organizations in all of the Company’s key markets - including, but not limited to, the US, Canada, Europe, Australia, and India – to build mutually beneficial partnerships.
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PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
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
Essential indicators
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.
Infosys Foundation works closely with communities in identified areas in the domains of education, healthcare, women empowerment, sustainability, 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 include a
grievance mailbox (feedback_IF@infosys.com), site visits, 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
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Directly sourced from MSMEs / small producers
Sourced directly from within the district and neighboring districts
* India procurement
Fiscal 2023*
Fiscal 2022*
16%
66%
9.79%
72%
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
State
S.
No
Aspirational district
Amount spent
(In `)
1
2
3
4
5
6
7
8
9
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Arunachal Pradesh
Assam
Assam
Assam
Assam
Assam
Visakhapatnam
Y.S.R Kadapa
Vizianagaram
Namsai
Baksa
Udalguri
Dhubri
Goalpara
Darrang
7,17,85,217
10,68,634
8,10,816
4,18,273
2,51,19,840
2,50,10,847
2,22,966
1,66,473
1,64,802
S.
No
10
11
12
13
14
15
16
17
18
State
Assam
Bihar
Bihar
Bihar
Bihar
Bihar
Bihar
Bihar
Himachal Pradesh
Aspirational district
Amount spent
(In `)
Hailakandi
Muzaffarpur
Aurangabad
Gaya
Katihar
Khagaria
Purnia
Begusarai
Chamba
1,33,317
4,41,039
4,40,700
2,62,168
2,03,167
1,47,158
1,43,770
1,42,732
1,05,603
Infosys Integrated Annual Report 2022-23
State
S.
No
Aspirational district
Amount spent
(In `)
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Jharkhand
Jharkhand
Jharkhand
Jharkhand
Jharkhand
Jharkhand
Karnataka
Karnataka
Kerala
Madhya Pradesh
Madhya Pradesh
Madhya Pradesh
Madhya Pradesh
Madhya Pradesh
Madhya Pradesh
Maharashtra
Maharashtra
Maharashtra
Maharashtra
Manipur
Meghalaya
Odisha
Odisha
Odisha
Odisha
Ranchi
Sahibganj
Hazaribag
Bokaro
Lohardaga
Gumla
Raichur
Yadgir
Wayanad
Singrauli
Barwani
Damoh
Vidisha
Guna
Rajgarh
Gadchiroli
Osmanabad
Nandurbar
Washim
Chandel
Ribhoi
Gajapati
Kalahandi
Koraput
Dhenkanal
5,05,701
1,40,155
1,39,918
1,29,909
1,28,552
1,25,603
1,81,70,836
29,17,231
6,35,474
62,43,484
46,21,390
40,24,525
10,38,478
3,79,222
1,00,350
31,24,664
10,52,337
10,19,303
9,62,333
1,75,300
4,72,830
19,57,832
17,61,179
14,93,897
13,17,135
State
Odisha
Odisha
Odisha
Punjab
Punjab
Rajasthan
Rajasthan
Rajasthan
Rajasthan
Rajasthan
Sikkim
Tamil Nadu
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttar Pradesh
Uttar Pradesh
Uttarakhand
Uttarakhand
S.
No
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Aspirational district
Amount spent
(In `)
Balangir
Kandhamal
Rayagada
Moga
Ferozepur
Jaisalmer
Sirohi
Karauli
Baran
Dholpur
West District
Virudhunagar
Ramanathapuram
11,35,760
10,95,698
5,46,016
4,02,855
1,36,101
62,90,445
54,49,710
50,61,020
39,63,382
20,46,138
1,64,022
2,51,960
2,00,527
Bhadradri-Kothagudem
62,50,000
Dhalai
Fatehpur
Chandauli
Sonbhadra
Haridwar
Udham Singh Nagar
2,90,972
4,85,764
1,54,558
1,31,514
4,56,429
3,23,010
6,38,513
21,48,99,551
Various districts - with spend less than one lakh
Total
Note:
105 out of the 112 asprirational districts covered in fiscal 2023
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.
Refer to https://www.infosys.com/investors/corporate-governance/documents/responsible-supply-chain-supplier-diversity-policy.pdf.
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
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6. Details of beneficiaries of CSR projects:
CSR project
S.
No
No. of persons
benefitted from CSR
projects
% of beneficiaries
from vulnerable
and marginalised
groups
1
2
3
4
5
6
7
8
9
10
11
12
13
Arpan Trust
Bateshwar restoration
20,250
55,000
Bharatiya Vidya Bhavan
97,529
Bio-gas and improved
cookstove projects
Department of
Education, Karnataka
Evidyaloka
Hebbal Lake, Mysuru
Infosys Foundation
Vishram Sadan – All
India Institute of
Medical Sciences
9,64,000*
51,000
21,026
40,700
1,00,000
Infosys Springboard –
Digital Literacy Program
10,74,295
Mo-Schools
Mudipu road
construction
28,475
3,60,000
Pocharam municipality
51,747
Ramakrishna Mission
Sevashrama
63,016
95
0
0
75
100
100
0
0
27
100
0
0
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CSR project
No. of persons
benefitted from CSR
projects
% of beneficiaries
from vulnerable
and marginalised
groups
Ramakrishna Sarada
Mission Matri Bhavan
4,20,785
Seva Bharati
28,000
SGBS Unnati Foundation
10,000
Shivganga Samagra
Gramvikas Parishad
Skill programs
Sri Jayadeva Institute of
Cardiovascular Sciences
and Research
Sri Ramakrishna
Sevashrama, Pavagada
Visakha Jilla Nava
Nirmana Samiti
Yuva Foundation
Various beneficiaries
less than 10,000
Total
1,50,000
27,906
47,039
14,735
26,757
79,866
49,337
37,81,463
100
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0
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2
100
49
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S.
No
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23
Note:
1. Women, children and people with differently-abled are the main vulnerable groups identified.
2. Beneficiary count is arrived based on the progress reports, site visits and MoUs, as applicable.
* Beneficary count is calculated based on four persons per household
Infosys Integrated Annual Report 2022-23
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 most of our clients are delighted with Infosys, sustaining the positive feedback gained over the years. We have also been
appreciated for our relationship management, client-centric approach, account management, base delivery and quality of deliverables.
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.
There are no 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.
Refer to 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.
1. Channels / platforms where information on products and services of the Company can be accessed
Refer to https://www.infosys.com/services.html.
Leadership indicators
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.
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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 customer 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 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.
5. Provide the following information relating to data breaches:
a. Number of instances of data breaches along with impact
0
b. Percentage of data breaches involving personally identifiable information of customers
0
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Infosys Integrated Annual Report 2022-23
Independent Assurance Statement to Infosys Limited on Select Non-Financial
Sustainability Disclosures in the Integrated Report for the Financial Year 2022-23
To
The Management of Infosys Limited
Infosys Limited,
44/97A, 3rd Cross,
Electronic City, Hosur Road,
Bangalore 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’ or ‘IR report’) for the reporting period covering 1st April 2022 to 31st March 2023 (“the Year’’ or “the Reporting Period”). Our
responsibility was to provide independent 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 2021.
•
•
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 the following assurance standards
• Assurance requirements of the International Federation of Accountants (IFAC) International Standard on
– Assurance Engagements Other than Audits or Reviews of Historical Financial Information- (ISAE 3000- revised), for the select
environmental and social disclosures in the Report.
– Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), for the GHG emissions data.
• Under these standards, 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.
• A reasonable assurance engagement in accordance with ISAE 3000 (revised) and ISAE 3410 involves performing procedures to obtain
evidence about the quantification of emissions and related information in ‘the Report’.
201
Infosys Integrated Annual Report 2022-23 Scope, Boundary, and Limitations
•
The scope of assurance covers select non-financial sustainability disclosures for the period FY 2022-23 in Infosys’ IR report, 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. Delivery Centre, Bengaluru
3. SEZ Delivery Centre, Hyderabad
4. Delivery Centre, Mysuru
5. Delivery Centre, Trivandrum
6. Delivery Centre, Gurugram
7. Delivery Centre, Jaipur
8. Delivery Centre, Bhubaneswar
9. Delivery Center, Chandigarh
10. Delivery Centre, Shanghai
•
Following selected non-financial disclosures in ‘the Report’ were subjected to reasonable assurance:
Disclosures subject to Reasonable Assurance
Disclosures subject to Limited Assurance
GRI Standards
Universal Standard- Material Topics 2021
• Disclosures on Material Topics: 3-1, 3-2, 3-3
Topic Standards – Environmental
Environmental
•
Energy (2016): 302-1, 302-3, 302-4, 305-1,305-2, 305-3, 305-4
• Water & Effluents (2018): 303-3, 303-5
• Water & Effluents (2018): 303-4
•
Emissions (2016): 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7
• Waste (2020): 306-3, 306-4, 306-5
•
Supplier environmental assessment (2016): 308-1, 308-2
Topic Standards – Social
Social
•
Employment (2016): 401-1, 401-2, 401-3
• Non-Discrimination (2016): 406-1
• Occupational health & safety (2018): 403-1, 403-2,
•
Training & Education: 404-1,404-2,404-3
• Diversity & equal opportunity (2016): 405-1
•
Freedom of association and collective bargaining (2016): 407-1
• Child labor (2016): 408-1
•
•
•
•
Forced or compulsory labor (2016): 409-1
Security practices (2016): 410-1
Local communities (2016): 413-1, 413-2
Supplier social assessment (2016): 414-1, 414-2
• Customer privacy (2016): 418-1
SASB Standards for Software and IT Services Industry: Sustainability Disclosure Topics & Accounting Metrics
Disclosures subject to Reasonable Assurance
Disclosures subject to Limited Assurance
•
•
Environmental footprint of hardware infrastructure:
TCSI-130a.1 (energy)
•
Environmental footprint of hardware infrastructure:
TCSI-130a.2 (water)
Recruiting and managing a Global, Diverse and Skilled
Workforce: TCSI-330a.1, TCSI- 330a.2, and TCSI-330a.3
• Data security: TC-SI-230a.1
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Infosys Integrated Annual Report 2022-23 Disclosures subject to Reasonable Assurance
Disclosures subject to Limited Assurance
Business Responsibility and Sustainability Report (BRSR)
Section A: General Disclosures
•
•
Employees - A18a, A18b, A19, A20
Transparency and Disclosures Compliances – A24
Section B: Management and Process Disclosures
Section B: Management and Process Disclosures
•
Policy & Management Processes - B5
•
Policy & Management Processes – B1 a, B1 b, B1 c, B2, B3, B4
• Governance, Leadership, and Oversight – B7, B8, B9, B11
Section C: Principle-wise Performance Disclosure
Section C: Principle-wise Performance Disclosure
•
•
•
•
•
•
Principle 3 – P3-E1a, P3-E5, P3-E8, P3-E10a, P3-E10b, P3-E10c,
P3-E10d, P3-E-11, P3- E14, P3- L4, P3-L5, P3-L6
Principle 4 – P4-E1, P4-E2, P4-L2
Principle 5 – P5-E1, P5-L3, P5-L4, P5-L5
Principle 6 – P6-E1, P6-E5, P6-E6, P6-E7, P6-E8, P6-E9, P6-L1,
P6-L2, , P6-L4, P6-L6, P6-L7, P6-L8, P6-L9
Principle 8 – P8-E1, P8-E2,
Principle 9 – P9-E3, P9-E5, P9-L5
•
•
•
•
•
•
•
•
Principle 1 – P1-E1, P1-E4, P1-E5, P1-L1, P1-L2
Principle 2 – P2-E2
Principle 3 – P3-E3, P3-E4, P3-E6, P3-E7, P3-E12, P3-E13, P3- E15,
P3-L1
Principle 4 – P4-L1
Principle 5 – P5-E2, P5-E4, P5-E5, P5-E6, P5-E7, P5-E8, P5-E9,
P5- E10, P5-L2
Principle 6 – P6-E3, P6-E4, P6-E11, P6-L3
Principle 8 – P8-E3, P8-E4
Principle 9 – P9-E1, P9-E6, P9-L4
Limitations
The assurance scope excludes the following:
• Data related to the Company’s financial performance.
• Data and information outside the defined reporting period.
•
The Company’s statements that describe the progress on goals other than those listed under the scope above, expression of opinion,
belief, claims, 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 the specified disclosures. The nature,
timing, and extent of the 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 the 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 the 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.
203
Infosys Integrated Annual Report 2022-23 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 select non-financial sustainability disclosures in the Integrated Report of Infosys Limited for the reporting period
from 1st April 2022 to 31st March 2023. 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 select non-financial sustainability disclosures which have been subjected to reasonable assurance as defined under the scope of
assurance, are fairly stated in all material aspects.
Limited Assurance:
Nothing has come to our attention that causes us not to believe that the select non-financial sustainability disclosures which have been
subjected to limited assurance as defined under the scope of assurance, are appropriately stated in all material aspects.
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.
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 ii 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, ESG Services
KPMG Assurance and Consulting Services LLP
Date: 29-May-2023
204
Infosys Integrated Annual Report 2022-23 Statutory reports
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, 2023, the 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, 2023.
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 financial 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 over financial reporting.
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, 2023
Sd/-
Salil Parekh
Chief Executive Officer and Managing Director
Sd/-
Nilanjan Roy
Chief Financial Officer
205
Infosys Integrated Annual Report 2022-23 Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2023
Index
A Independent Auditor’s Report ..................................................................................................................................................................................................207
B Balance Sheet ...................................................................................................................................................................................................................................219
C Statement of Profit and Loss ......................................................................................................................................................................................................221
D Statement of Changes in Equity ...............................................................................................................................................................................................223
E Statement of Cash Flows ..............................................................................................................................................................................................................229
F Overview and Notes to the Standalone Financial Statements ......................................................................................................................................231
1. Overview
1.1 Company overview ...............................................................................................................................................................................................................231
1.2 Basis of preparation of financial statements ................................................................................................................................................................231
1.3 Use of estimates and judgments ......................................................................................................................................................................................231
1.4 Critical accounting estimates and judgments .............................................................................................................................................................231
1.5 Recent accounting pronouncements .............................................................................................................................................................................232
2. Notes to the Standalone financial statements
2.1 Property, plant and equipment.........................................................................................................................................................................................232
2.2 Goodwill and other intangible assets.............................................................................................................................................................................235
2.3 Leases ........................................................................................................................................................................................................................................236
2.4 Capital work-in-progress .....................................................................................................................................................................................................238
2.5 Investments ..............................................................................................................................................................................................................................239
2.6 Loans ...........................................................................................................................................................................................................................................244
2.7 Other financial assets ............................................................................................................................................................................................................244
2.8 Trade receivables ....................................................................................................................................................................................................................245
2.9 Cash and cash equivalents ..................................................................................................................................................................................................246
2.10 Other assets ............................................................................................................................................................................................................................246
2.11 Financial instruments ..........................................................................................................................................................................................................247
2.12 Equity .........................................................................................................................................................................................................................................255
2.13 Other financial liabilities .....................................................................................................................................................................................................262
2.14 Trade payables ........................................................................................................................................................................................................................262
2.15 Other liabilities .......................................................................................................................................................................................................................264
2.16 Provisions .................................................................................................................................................................................................................................264
2.17 Income taxes ...........................................................................................................................................................................................................................264
2.18 Revenue from operations ...................................................................................................................................................................................................267
2.19 Other income, net .................................................................................................................................................................................................................270
2.20 Expenses ..................................................................................................................................................................................................................................271
2.21 Employee benefits ................................................................................................................................................................................................................271
2.22 Reconciliation of basic and diluted shares used in computing earnings per equity share ......................................................................276
2.23 Contingent liabilities and commitments .....................................................................................................................................................................277
2.24 Related party transactions ................................................................................................................................................................................................277
2.25 Corporate Social Responsibility (CSR) ...........................................................................................................................................................................287
2.26 Segment reporting...............................................................................................................................................................................................................287
2.27 Ratios .........................................................................................................................................................................................................................................287
2.28 Function-wise classification of Statement of Profit and Loss ..............................................................................................................................288
206
Infosys Integrated Annual Report 2022-23 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, 2023, 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, 2023 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.
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Infosys Integrated Annual Report 2022-23 Sr. No.
Key Audit Matter
1
Revenue recognition
The Company’s contracts with customers include contracts with multiple products and services. The Company derives
revenues from IT services comprising software development and related services, maintenance, consulting and package
implementation, licensing of software products and platforms across the Company’s core and digital offerings and business
process management services. The Company assesses the services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of
the customer to benefit independently from such deliverables involves significant judgement.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party vendor
equipment or software. In these types of arrangements, revenue from sales of third-party vendor products or services is
recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when the
Company is the principal for the transaction. In doing so, the Company first evaluates whether it controls the products or
service before it is transferred to the customer. The Company considers whether it has the primary obligation to fulfil the
contract, inventory risk, pricing discretion and other factors to determine whether it controls the products or service and
therefore, is acting as a principal or an agent.
Fixed price maintenance revenue is recognized ratably either on (1) a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from the services rendered to the customer and the Company’s costs to fulfil the contract is
not even through the period of contract because the services are generally discrete in nature and not repetitive. The use of
method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature
of the deliverables.
As certain contracts with customers involve management’s judgment in (1) identifying distinct performance obligations,
(2) determining whether the Company is acting as a principal or an agent and (3) whether fixed price maintenance revenue
is recognized on a straight-line basis or using the percentage of completion method, revenue recognition from these
judgments were identified as a key audit matter and required a higher extent of audit effort.
Refer Notes 1.4 and 2.18 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.
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Infosys Integrated Annual Report 2022-23Standalone Financial Statements Sr. No.
Key Audit Matter
2
Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed through
an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method when
the pattern of benefits from services rendered to the customer and the Company’s costs to fulfil the contract is not even
through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other
fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the
percentage-of-completion method.
Use of the percentage-of-completion method requires the Company to determine the actual efforts or costs expended
to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to
measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total
efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes
based on the latest available information. Provisions for estimated losses, if any, on uncompleted contracts are recorded in
the period in which such losses become probable based on the estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage of
completion method as a key audit matter as the estimation of total efforts or costs involves significant judgement and
is assessed throughout the period of the contract to reflect any changes based on the latest available information. This
estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs incurred
to-date and estimates of efforts or costs required to complete the remaining contract performance obligations over the
term of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort to
evaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.4 and 2.18 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 the using percentage-of-completion method and
performed the following :
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Company’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.
209
Infosys Integrated Annual Report 2022-23 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 and
Sustainability 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.
Responsibilities of Management and Those Charged with Governance 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 the Board of
Directors 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 with reference to standalone financial statements 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.
•
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Infosys Integrated Annual Report 2022-23Standalone Financial Statements 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, 2023 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2023 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 with reference to standalone financial statements 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 with
reference to standalone financial statements.
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. Refer Note 2.23 to the standalone financial statements.
The Company has made provision as required under applicable law or accounting standards for material
foreseeable losses. Refer Note 2.16 to the standalone financial statements. The Company did not have any long-term
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, other than as disclosed in the note 2.24
to the Standalone Financial Statements, 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;
211
Infosys Integrated Annual Report 2022-23 (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.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software
which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023,
and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the
financial year ended March 31, 2023.
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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN : 23039826BGXRYR4513
Place : Bengaluru
Date : April 13, 2023
212
Infosys Integrated Annual Report 2022-23Standalone Financial Statements 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 with reference to Standalone Financials Statements under Clause (i) of sub-section 3
of Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls with reference to standalone financial statements of INFOSYS LIMITED (the
“Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year
ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial controls with reference to standalone
financial statements 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 with reference to standalone financial statements
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 Act, to the
extent applicable to an audit of internal financial controls with reference to standalone financial statements. 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 with reference to standalone financial statements 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 with reference
to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone
financial statements included obtaining an understanding of internal financial controls with reference to standalone financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls with reference to standalone financial statements .
Meaning of Internal Financial Controls with reference to standalone financial statements
A company's internal financial control with reference to standalone financial statements 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 with reference to standalone financial statements
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 with reference to Standalone Financial Statements
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 with reference to standalone financial statements to future periods are subject to the
risk that the internal financial control with reference to standalone financial statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
213
Infosys Integrated Annual Report 2022-23 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 with reference to standalone financial statements and such internal financial controls with reference
to standalone financial statements were operating effectively as at March 31, 2023, based on the criteria for internal financial control
with reference to standalone financial statements 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, 2023
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN : 23039826BGXRYR4513
214
Infosys Integrated Annual Report 2022-23Standalone Financial Statements 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, right-of-use assets 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 and right-of-use assets 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, 2023 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 and granted unsecured loans to other parties, during the year,
in respect of which :
(a)
The Company has provided loans during the year, and details of which are given below :
Particulars
Aggregate amount granted during the year
– Subsidiaries
Balance outstanding as at balance sheet date in respect of above cases :
– Subsidiaries
Amount ₹ crore
427
43
(b)
(c)
(d)
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 made investments in Firms and Limited Liability Partnerships during the year. Further 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.
215
Infosys Integrated Annual Report 2022-23 iv.
v.
vi.
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.
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, 2023 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, 2023 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 Appellate Tribunal
AY (1) 2016-17
- (4)
Income Tax
Commissioner (Appeals)
Income Tax
Assessing Officer
Equalisation Levy
Assessing Officer
AY (1) 2010-11,
AY (1) 2013-14,
AY (1) 2016-17,
AY (1) 2019-20,
AY (1) 2021-22 to
AY (1) 2023-24
AY (1) 2008-09 to
AY (1) 2023-24
AY (1) 2021-22
Customs Act, 1962
Duty of Custom
Specified Officer of Special Economic
Zone
FY (1) 2008-09 to
FY (1) 2011-12
Central Excise Act, 1944
Duty of Excise
Supreme Court (3)
Duty of Excise
Customs Excise and Service Tax
Appellate Tribunal
FY (1) 2005-06 to
FY (1) 2015-16
FY (1) 2015-16
Goods and Service Tax Act,
2017
Goods and Service Tax Additional Commissioner (Appeals)
FY (1) 2019-20
Sales Tax Act and VAT Laws
Sales Tax
Joint Commissioner (Appeals) (3)
FY (1) 2006-07 to
FY (1) 2010-11 and
FY (1) 2014-15 to
FY (1) 2016-17
Finance Act, 1994
Sales Tax
Service Tax
Service Tax
Commissioner (Appeals)
High Court of Andhra Pradesh
FY (1) 2007-08
Customs Excise and Service Tax
Appellate Tribunal (2)
FY (1) 2004-05 to
FY (1) 2017-18
FY (1) 2015-16 to
FY (1) 2017-18
The National Internal
Revenue Code of 1997
The National Internal
Revenue Code of 1997
The National Internal
Revenue Code of 1997
Corporate Income tax Commissioner of Bureau of Internal
FY (1) 2017-18
Withholding tax
Value Added Tax
Revenue, Philippines
Commissioner of Bureau of Internal
Revenue, Philippines
Commissioner of Bureau of Internal
Revenue, Philippines
FY (1) 2017-18
FY (1) 2017-18
Income Tax Assessment Act
(ITAA 1936)
Corporate Income tax Administrative Appeals Tribunal,
Australia
FY (1) 2011-12 to
FY (1) 2016-17
216
2,511
3,844
- (4)
5
68
- (4)
6
21
- (4)
317
1
1
1
2
182
Infosys Integrated Annual Report 2022-23Standalone Financial Statements Nature of the statute
Nature of dues
Forum where Dispute is Pending
Period to which the
Amount Relates
Amount
₹ crore
UK Finance Act 1998
Corporation Tax
Her Majesty's Revenue and Customs
(HMRC) Tax Officer, United Kingdom (3)
FY (1) 2014-15 to
FY (1) 2016-17
Central Sales Tax Act, 1956
Central Sales Tax
Joint Commissioner (Appeals)
FY (1) 2016-17
The Karnataka [Gram Swaraj
and Panchayat Raj] Act, 1993
Panchayat Property
Tax
High Court of Karnataka at Bengaluru
Greater Hyderabad
Municipal Corporation Act,
1955
Trade Licence Fee
Ministry for Information Technology
& Municipal Administration & Urban
Development
FY (1) 2017-18 to
FY (1) 2020-21
FY (1) 2021-22 to
FY (1) 2022-23
202
- (4)
32
3
Footnotes :
(1) AY=Assessment Year; FY= Financial Year.
(2) Stay order has been granted against ₹60 crore disputed which has not been deposited.
(3) Stay order has been granted.
(4) Less than ₹ 1 crore.
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.
217
Infosys Integrated Annual Report 2022-23 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.
xviii.
xix.
The Company has not incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.
There has been no resignation of the statutory auditors of the Company during the year.
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.
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, 2013 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 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 Companies Act, 2013.
In respect of ongoing projects, the Company has not transferred the unspent 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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN : 23039826BGXRYR4513
Place : Bengaluru
Date : April 13, 2023
218
Infosys Integrated Annual Report 2022-23Standalone Financial Statements Balance Sheet
Particulars
Assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Capital work-in-progress
Goodwill
Other intangible assets
Financial assets
Investments
Loans
Other financial assets
Deferred tax assets (net)
Income tax assets (net)
Other non-current assets
Total non-current assets
Current assets
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Loans
Other financial assets
Other current assets
Total current assets
Total assets
Note
As at March 31,
2023
2022
(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
11,656
3,561
275
211
3
11,384
3,311
411
211
32
23,686
22,869
39
1,341
779
5,916
1,788
49,255
4,476
20,773
6,534
291
9,088
10,920
52,082
1,01,337
34
727
970
5,585
1,416
46,950
5,467
18,966
12,270
219
6,580
8,935
52,437
99,387
219
Infosys Integrated Annual Report 2022-23
Balance Sheet (contd.)
Particulars
Equity and liabilities
Equity
Equity share capital
Other equity
Total equity
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities
Other financial liabilities
Deferred tax liabilities (net)
Other non-current liabilities
Total non-current liabilities
Current liabilities
Financial liabilities
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
Note
As at March 31,
2023
2022
2.12
2.3
2.13
2.17
2.15
2.3
2.14
2.13
2.15
2.16
2.17
2,074
65,671
67,745
3,553
1,317
866
414
6,150
713
97
2,329
12,697
7,609
1,163
2,834
27,442
1,01,337
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
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Bengaluru
April 13, 2023
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
220
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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 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 and 2.3
2.3
2.20
2.17
2.17
Year ended March 31,
2023
1,24,014
3,859
1,27,873
62,764
19,096
1,227
5,214
502
1,236
2,753
157
3,281
96,230
31,643
8,167
208
23,268
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
221
Infosys Integrated Annual Report 2022-23
Statement of Profit and Loss (contd.)
Particulars
Note
Year ended March 31,
2023
2022
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 (₹)
2.17 and 2.21
2.5 and 2.17
2.11 and 2.17
2.5 and 2.17
(19)
(6)
(7)
(236)
(268)
(98)
97
(8)
(39)
(48)
23,000
21,187
55.48
55.42
50.27
50.21
Weighted average equity shares used in computing earnings per equity share
Basic
Diluted
2.22
2.22
419,38,13,881
422,43,39,562
419,82,34,378
422,95,46,328
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
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Bengaluru
April 13, 2023
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
222
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Statement of Changes in Equity
Particulars
Equity
share
capital
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) 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 Notes 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
Notes 2.5 and 2.17)
Total
comprehensive
income for the
year
2
2
3
2,130
54
2,906
111
581
57,518
1,663
372
6,144
169
10
(127)
71,531
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
21,235
–
–
–
–
–
–
–
–
–
21,235
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
97
–
–
–
–
–
(8)
–
21,235
(98)
(98)
–
–
97
(8)
–
(39)
(39)
97
(8)
(137)
21,187
Infosys Integrated Annual Report 2022-23
2
2
4 Particulars
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 (SEZ)
Re-investment
Reserve
Transferred from
Special Economic
Zone (SEZ)
Re-investment
Reserve on
utilization
Transferred
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)
Equity
share
capital
(28)
–
–
–
–
–
–
1
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) 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
l
S
t
a
n
d
a
o
n
e
F
n
a
n
c
i
a
i
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
28
–
–
–
–
–
(640)
(8,822)
(1,603)
–
–
–
(24)
–
(28)
–
–
–
–
(2,794)
–
1,012
218
–
10
–
–
–
–
–
–
–
–
(218)
1
(1)
–
–
–
–
–
2,794
(1,012)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
l
S
t
a
t
e
m
e
n
t
s
(11,093)
(24)
–
–
–
–
–
11
–
–
–
–
–
–
–
–
Infosys Integrated Annual Report 2022-23
Particulars
Equity
share
capital
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) 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 (3) (Refer to
Note 2.5.1)
Dividends
Balance as at
March 31, 2022
–
–
–
–
–
–
–
–
–
–
(62)
–
–
–
–
–
–
3
–
–
–
–
–
(12,700)
2,103
54
2,844
139
172
55,449
–
–
–
–
9
393
60
–
–
–
–
–
–
–
–
–
–
606
7,926
266
–
–
–
–
2
–
–
–
–
393
63
(62)
(12,700)
(264)
69,306
2
2
5
Infosys Integrated Annual Report 2022-23
2
2
6
Statement of Changes in Equity (contd.)
Particulars
Equity
share
capital
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) 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
l
S
t
a
n
d
a
o
n
e
F
n
a
n
c
i
a
i
l
S
t
a
t
e
m
e
n
t
s
2,103
54
2,844
139
172
55,449
9
606
7,926
266
–
2,103
–
54
–
2,844
–
139
–
(9)
172
55,440
–
9
–
606
–
7,926
–
266
Balance as at
April 1, 2022
Impact on
adoption of
amendment to
Ind AS 37 #
Changes in
equity for the
year ended
March 31, 2023
Profit for the year
Remeasurement
of the net
defined benefit
liability / asset, net *
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)
Fair value changes
on investments,
net * (Refer to Notes
2.5 and 2.17)
Total
comprehensive
income for the
year
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
23,268
–
–
–
–
–
–
–
–
–
23,268
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2
–
2
–
–
–
(7)
(264)
69,306
–
(9)
(264)
69,297
–
23,268
(19)
(19)
–
–
(6)
(7)
–
(236)
(236)
–
–
(6)
–
–
(6)
(7)
(255)
23,000
Infosys Integrated Annual Report 2022-23
Particulars
Equity
share
capital
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) Re-
investment
Reserve (1)
Equity
instruments
through other
comprehensive
income
Effective
portion of
cash flow
hedges
Other items
of other
comprehensive
income / (loss)
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 (SEZ)
Re-investment
Reserve
Transferred
from Special
Economic Zone
Re-investment
Reserve on
utilization
Transferred on
account of exercise
of stock options
(Refer to Note 2.12)
Transferred on
account of options
not exercised
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
Employee stock
compensation
expense (Refer to
Note 2.12)
(30)
–
–
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
2
2
7
–
–
–
–
–
–
–
–
–
–
–
(340)
(11,096)
(19)
(5)
–
–
30
–
(21)
(9)
–
–
–
–
–
–
–
–
–
–
(3,125)
–
1,397
291
–
29
–
–
–
–
–
2
(2)
–
–
–
514
–
–
–
–
–
(291)
–
–
–
3,125
(1,397)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total equity
attributable
to equity
holders
of the
Company
(11,466)
(24)
–
–
–
–
–
30
514
Infosys Integrated Annual Report 2022-23 2
2
8 Particulars
Equity
share
capital
Other equity
Capital reserve
Capital
reserve
Other
reserves (2)
Capital
redemption
reserve
Reserves and surplus
Securities
premium
Retained
earnings
General
reserve
Other comprehensive income
Share
options
outstanding
account
Special
Economic
Zone
(SEZ) 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
l
S
t
a
n
d
a
o
n
e
F
n
a
n
c
i
a
i
Income tax benefit
arising on exercise
of stock options
Reserves on
common control
transaction (Refer
to Note 2.5.1)
Dividends
Balance as at
March 31, 2023
* net of tax
–
–
–
–
–
–
–
18
–
–
–
–
–
–
–
–
–
(13,675)
–
–
–
51
–
–
–
–
–
–
–
–
–
–
–
l
S
t
a
t
e
m
e
n
t
s
–
–
–
51
18
(13,675)
2,074
54
2,862
169
133
52,183
2
878
9,654
260
(5)
(519)
67,745
** Including tax on buyback of ₹2,166 crore and ₹1,893 crore for the years ended March 31, 2023 and March 31, 2022, respectively.
#
Impact on account of adoption of amendment to Ind AS 37, Provisions, Contingent Liabilities and Contingents Assets.
(1) The Special Economic Zone (SEZ) Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income-tax Act, 1961. The reserve should be utilized
by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income-tax Act, 1961.
(2) Profit / loss on transfer of business between entities under common control taken to reserve.
(3) Arising on transfer of the business of Brilliant Basics Limited to Infosys Limited.
The accompanying notes form an integral part of the Standalone financial statements.
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm's Registration No :
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2023
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bobby Parikh
Director
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2022-23
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
Deposits placed with corporation
Redemption of deposits placed with corporation
Interest and dividend received
Dividend received from subsidiary
Loan given to subsidiaries
Loan repaid by subsidiaries
Proceeds from redemption of debentures
Investment in subsidiaries
Receipt / (payment) towards business transfer of entities under common control
Escrow and other deposits pertaining to buyback
Redemption of Escrow and other deposits pertaining to buyback
Other receipts
Payments to acquire investments
(In ₹ crore)
Note
Year ended March 31,
2023
2022
2.1, 2.2.2 and 2.3
2.17
2.19
2.12
2.14
23,268
21,235
2,753
8,375
183
157
2,429
7,260
117
128
(3,028)
(2,617)
460
155
(116)
(5,065)
(2,171)
(243)
2,248
26,976
(7,807)
19,169
372
72
87
(5,725)
(1,125)
1,112
5,487
28,832
(6,736)
22,096
(2,130)
(1,787)
(634)
482
1,299
1,463
(427)
393
–
(1,530)
19
(483)
483
61
(745)
607
1,658
1,218
–
73
536
(127)
(109)
(420)
420
47
229
Infosys Integrated Annual Report 2022-23
Particulars
Note
Year ended March 31,
Preference and equity securities
Liquid mutual fund units
Target maturity fund units
Tax-free bonds and government bonds
Commercial papers
Certificates of deposit
Government securities
Non-convertible debentures
Others
Proceeds on sale of investments
Tax-free bonds and government bonds
Preference and equity securities
Liquid mutual fund units
Non-convertible debentures
Certificates of deposit
Commercial papers
Government securities
Others
Net cash (used in) / generated from investing activities
Cash flow from financing activities :
Payment of lease liabilities
Shares issued on exercise of employee stock options
Buyback of equity shares including transaction costs and tax on buyback
Other receipts
Other payments
Payment of dividends
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Effect of exchange differences on translation of foreign currency 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
2.3
2.9
2.9
2.9
2023
–
2022
(5)
(62,952)
(48,139)
(400)
(14)
(2,485)
(8,909)
(1,370)
–
(4)
213
–
64,168
395
9,454
2,098
1,532
99
821
(694)
30
–
–
–
(3,897)
(3,450)
(1,456)
(5)
20
9
48,219
1,939
787
–
1,452
5
(3,150)
(598)
11
(11,499)
(11,125)
44
(64)
(13,674)
(25,857)
(5,867)
131
12,270
6,534
134
–
(12,697)
(24,275)
(5,329)
(13)
17,612
12,270
46
60
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm's Registration No :
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Bengaluru
April 13, 2023
230
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Overview and Notes to the Standalone Financial Statements
1. Overview
1.1 Company overview
Infosys Limited ("the Company" or Infosys) provides
consulting, technology, outsourcing and next-generation
digital services, to enable clients to execute strategies for their
digital transformation. Infosys' strategic objective is to build a
sustainable organization that remains relevant to the agenda of
clients, while creating growth opportunities for employees and
generating profitable returns for investors. Infosys' strategy is to
be a navigator for our clients as they ideate, plan and execute on
their journey to a digital future.
The Company is a public limited company incorporated and
domiciled in India, and has its registered office at Electronics City,
Hosur Road, Bengaluru 560100, Karnataka, India. The Company
has its primary listings on the BSE Ltd. and National Stock
Exchange of India Limited. The Company’s American Depositary
Shares (ADS) representing equity shares are listed on the New
York Stock Exchange (NYSE).
The Standalone financial statements are approved for issue by the
Company's Board of Directors on April 13, 2023.
1.2 Basis of preparation of financial statements
These Standalone financial statements are prepared in accordance
with Indian Accounting Standard (Ind AS), under the historical
cost convention on accrual basis, except for certain financial
instruments which are measured at fair values, the provisions
of the Companies Act, 2013 (''the Act'') and guidelines issued
by the Securities and Exchange Board of India (SEBI). The Ind AS
are prescribed under Section 133 of the Act read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter.
Accounting policies have been consistently applied, except
where a newly-issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded
to the nearest digits, the figures reported for the previous
quarters might not always add up to the year-end figures
reported in this statement.
1.3 Use of estimates and judgments
The preparation of the Standalone financial statements in
conformity with Ind AS requires the management to make
estimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the date of
the Standalone financial statements and reported amounts of
revenues and expenses during the period. The application of
accounting policies that require critical accounting estimates,
which involve complex and subjective judgments and the use of
assumptions in these financial statements, have been disclosed
in Note 1.4. Accounting estimates could change from period
to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management
becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates and judgements 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.
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 the Company's costs to fulfil the contract is not even through
the period of the contract because the services are generally
discrete in nature and not repetitive. The use of method to
recognize the maintenance revenues requires judgment
and is based on the promises in the contract and nature
of the deliverables.
The Company uses the percentage-of-completion method
in accounting for other fixed-price contracts. Use of the
percentage-of-completion method requires the Company to
determine the actual efforts or costs expended to date as a
proportion of the estimated total efforts or costs to be incurred.
Efforts or costs expended have been used to measure progress
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.
Contracts with customers include 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
231
Infosys Integrated Annual Report 2022-23 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.
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
United States, 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,
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. 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
(Refer to Note 2.17).
c. Property, plant and equipment
Property, plant and equipment represent a significant proportion
of the asset base of the Company. The charge in respect of
periodic depreciation is derived after determining an estimate
of an asset’s expected useful life and the expected residual
value at the end of its life. The useful lives and residual values
of the Company's assets are determined by the Management
at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on
historical experience with similar assets as well as anticipation
of future events, which may impact their life, such as changes in
technology (Refer to Note 2.1).
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 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below :
Ind AS 1, Presentation of Financial Statements – This amendment
requires the entities to disclose their material accounting policies
232
rather than their significant accounting policies. The effective
date for adoption of this amendment is annual periods beginning
on or after April 1, 2023. The Company has evaluated the
amendment and the impact of the amendment is insignificant in
the standalone financial statements.
Ind AS 8, Accounting Policies, Changes in Accounting Estimates
and Errors – This amendment has introduced a definition of
‘accounting estimates’ and included amendments to Ind AS 8
to help entities distinguish changes in accounting policies from
changes in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or after
April 1, 2023. The Company has evaluated the amendment and
there is no impact on its Standalone financial statements.
Ind AS 12, Income Taxes – This amendment has narrowed the
scope of the initial recognition exemption so that it does not
apply to transactions that give rise to equal and offsetting
temporary differences. The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2023.
The Company has evaluated the amendment and there is no
impact on its Standalone financial statements.
2. Notes to the Standalone 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 straight-line method.
The estimated useful lives of assets are as follows :
Buildings (1)
Plant and machinery (1)(2)
Office equipment
Computer equipment (1)
Furniture and fixtures (1)
Vehicles (1)
Leasehold improvements
22-25 years
5 years
5 years
3-5 years
5 years
5 years
Lower of useful life of the asset
or lease term
(1) Based on technical evaluation, the Management believes that the
useful lives, as given above, best represent the period over which the
Management expects to use these assets. Hence, the useful lives for
these assets is different from the useful lives as prescribed under Part C of
Schedule II of the Companies Act 2013.
(2)
Includes solar plant with a useful life of 25 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.
Infosys Integrated Annual Report 2022-23Standalone Financial Statements 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. 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. The cost and related accumulated
depreciation are eliminated from the financial statements upon
sale or retirement of the asset.
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, 2023 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, 2022
Additions
Deletions *
Gross carrying
value as at
March 31, 2023
Accumulated
depreciation as at
April 1, 2022
Depreciation
Accumulated
depreciation on
deletions *
Accumulated
depreciation as at
March 31, 2023
Carrying value as
at April 1, 2022
Carrying value as
at March 31, 2023
1,429
10,115
2
(2)
330
–
3,054
264
(174)
1,250
106
(42)
7,239
1,267
(1,271)
2,070
341
(282)
817
165
(14)
44
26,018
2
(1)
2,477
(1,786)
1,429
10,445
3,144
1,314
7,235
2,129
968
45
26,709
–
–
–
–
(3,834)
(2,494)
(389)
(238)
(993)
(109)
(5,163)
(1,614)
(1,080)
(216)
(499)
(157)
(37)
(14,634)
(4)
(2,193)
–
174
42
1,266
281
10
1
1,774
(4,223)
(2,558)
(1,060)
(4,977)
(1,549)
(646)
(40)
(15,053)
1,429
6,281
1,429
6,222
560
586
257
2,076
456
254
2,258
580
318
322
7
11,384
5
11,656
* During the year ended March 31, 2023, certain assets which were not in use having gross book value of ₹1,598 crore (net book value : nil), were retired.
233
Infosys Integrated Annual Report 2022-23 The changes in the carrying value of property, plant and equipment for the year ended March 31, 2022 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, 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 not in use having gross book value of ₹291 crore (net book value : nil) respectively, were
retired.
(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.
Particulars
Repairs and maintenance costs are recognized in the Statement
of Profit and Loss when incurred.
Furniture and fixtures
Tangible assets provided on operating lease to subsidiaries as at
March 31, 2023 and March 31, 2022 are as follows :
Computer equipment
(In ₹ crore)
Office equipment
Particulars
Land
Buildings
Plant and machinery
Cost Accumulated
depreciation
Net book
value
53
34
333
186
28
30
–
–
132
104
28
30
53
34
201
82
–
–
234
Cost Accumulated
depreciation
Net book
value
19
23
–
3
16
16
18
23
–
3
16
16
1
–
–
–
–
–
(In ₹ crore)
Particulars
Year ended March 31,
Aggregate depreciation charged
on above assets
Rental income from subsidiaries
2023
2022
13
53
6
52
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
2.2 Goodwill and other intangible assets
2.2.1 Goodwill
The summary of changes in the carrying amount of
goodwill is as follows :
The allocation of goodwill to operating segments as at
March 31, 2023 and March 31, 2022 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
2023
211
–
211
2022
167
44
211
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Operating segments without
significant goodwill
Total
(In ₹ crore)
As at March 31,
2023
2022
64
34
28
27
21
174
37
211
64
34
28
27
21
174
37
211
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, the 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, and overhead costs that are directly attributable to prepare the asset for its intended use.
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2023 are as follows :
Particulars
Gross carrying value as at April 1, 2022
Additions
Deletions
Gross carrying value as at March 31, 2023
Accumulated amortization as at April 1, 2022
Amortization expense
Accumulated amortization on deletions
Accumulated amortization as at March 31, 2023
Carrying value as at March 31, 2023
Carrying value as at April 1, 2022
Estimated useful life (in years)
Estimated remaining useful life (in years)
Customer-
related
Software-
related
Trade name-
related
(In ₹ crore)
Others
Total
113
–
–
113
(104)
(9)
–
(113)
–
9
7
–
54
–
–
54
(31)
(20)
–
(51)
3
23
2
–
26
–
–
26
(26)
–
–
26
–
–
26
(26)
–
–
(26)
(26)
–
–
5
–
–
–
5
–
219
–
–
219
(187)
(29)
–
(216)
3
32
235
Infosys Integrated Annual Report 2022-23
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2022 were as follows :
Particulars
Gross carrying value as at April 1, 2021
Additions
Deletions
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
(In ₹ crore)
Others
Total
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)
(26)
–
–
5
–
–
–
5
–
219
–
–
219
(152)
(35)
–
(187)
32
67
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, 2023 and March 31, 2022 is ₹639 crore and
₹529 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 asset (“ROU”) 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 include 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. Right-of-use-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.
236
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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
right-of-use asset if the Company changes its assessment to
whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in
the Balance Sheet and lease payments have been classified as
financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance
or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are
classified as operating leases.
When the Company is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a
straight-line basis over the term of the relevant lease.
The changes in the carrying value of right-to-use assets for the year ended March 31, 2023 are as follows :
Particulars
Balance as at April 1, 2022
Additions *
Deletions
Depreciation
Balance as at March 31, 2023
Category of ROU asset
Land
Buildings
Computers
552
2,621
–
–
(4)
548
510
(21)
(441)
2,669
138
371
(61)
(104)
344
* Net of adjustments on account of modifications and lease incentives
The changes in the carrying value of right-to-use assets for the year ended March 31, 2022 were as follows :
Particulars
Balance as at April 1, 2021
Additions *
Deletions
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
* Net of adjustments on account of modifications and lease incentives
The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the
Statement of Profit and Loss.
(In ₹ crore)
Total
3,311
881
(82)
(549)
3,561
(In ₹ crore)
Total
3,435
374
(18)
(480)
3,311
237
Infosys Integrated Annual Report 2022-23
The break-up of current and non-current lease liabilities as at
March 31, 2023 and March 31, 2022 is as follows :
The movement in the net investment in sublease in ROU asset during
the years ended March 31, 2023 and March 31, 2022 is as follows :
Particulars
As at March 31,
Particulars
(In ₹ crore)
Current lease liabilities
Non-current lease liabilities
Total
2023
713
3,553
4,266
2022
558
3,228
3,786
The movement in lease liabilities during the years ended
March 31, 2023 and March 31, 2022 is as follows :
Particulars
As at March 31,
(In ₹ crore)
Balance at the beginning
Additions
Finance cost accrued during the
period
Deletions
Payment of lease liabilities
Translation difference
Balance at the end
2023
3,786
883
151
(26)
(706)
178
4,266
2022
3,854
394
126
(18)
(628)
58
3,786
Balance at the beginning
Interest income accrued during the
period
Lease receipts
Translation difference
Balance at the end
(In ₹ crore)
As at March 31,
2023
365
2022
385
13
(61)
29
346
13
(47)
14
365
The details regarding the contractual maturities of net
investment in sublease of ROU asset as at March 31, 2023 and
March 31, 2022 on an undiscounted basis are as follows :
Particulars
Less than one year
One to five years
More than five years
Total
(In ₹ crore)
As at March 31,
2023
2022
60
257
69
386
54
230
126
410
The details regarding the contractual maturities of lease liabilities
as at March 31, 2023 and March 31, 2022 on an undiscounted
basis are as follows :
Leases not yet commenced to which the Company is committed
is ₹135 crore for a lease term ranging from four to ten years.
2.4 Capital work-in-progress
Particulars
As at March 31,
Particulars
(In ₹ crore)
(In ₹ crore)
As at March 31,
2023
275
275
2022
411
411
Capital work-in-progress
Total capital work-in-progress
The capital work-in-progress ageing schedule for the years
ended March 31, 2023 and March 31, 2022 is as follows :
Particulars
Amount in CWIP for a period of
Total
(In ₹ crore)
Projects in
progress
Total capital
work-in-progress
Less
than 1
year
1-2
years
2-3
years
More
than 3
years
222
267
222
267
21
48
21
48
12
51
12
51
20
45
20
45
275
411
275
411
Less than one year
One to five years
More than five years
Total
2023
821
2,547
1,546
4,914
2022
637
2,100
1,519
4,256
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 ₹22
crore and ₹12 crore for the years ended March 31, 2023 and
March 31, 2022, respectively.
238
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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, 2023 and March 31, 2022 is as follows :
Particulars
Projects in progress
KL-SP-SDB1
BN-SP-MET
NG-SZ-SDB1
BN-SP-RETRO
BH-SZ-MLP
Total capital work-in-progress
2.5 Investments
Particulars
Non-current investments
Equity instruments of subsidiaries
Redeemable preference shares of subsidiary
Preference securities and equity instruments
Compulsorily convertible debentures
Target maturity fund units
Others
Tax-free bonds
Government bonds
Non-convertible debentures
Government securities
Total non-current investments
Current investments
Liquid mutual fund units
Commercial papers
Certificates of deposit
Tax-free bonds
Government bonds
Government securities
Non-convertible debentures
Total current investments
Total carrying value
To be completed in
Less than 1
year
1-2 years
2-3 years More than 3
years
114
–
20
–
–
89
–
30
–
116
134
235
–
27
–
–
–
–
–
–
–
–
–
27
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(In ₹ crore)
Total
114
27
20
–
–
89
–
30
–
116
134
262
(In ₹ crore)
As at March 31,
2023
2022
9,078
2,831
196
–
402
82
1,742
14
2,490
6,851
9,061
1,318
194
7
–
76
1,901
–
3,459
6,853
23,686
22,869
260
420
2,765
150
–
5
876
4,476
28,162
1,337
–
3,141
200
13
362
414
5,467
28,336
239
Infosys Integrated Annual Report 2022-23
Particulars
Non-current investments
Unquoted
Investment carried at cost
(In ₹ crore, except as otherwise stated)
As at March 31,
2023
2022
Investments in equity instruments of subsidiaries
Infosys BPM Limited
33,828 (33,828) equity shares of ₹10,000 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 Singapore 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, Inc.
100 (100) shares
Infosys Luxembourg S.ã r.l.
20,000 (20,000) shares
Infosys Austria 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
240
662
662
369
65
76
1,010
99
369
65
76
1,010
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
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Particulars
Infosys Consulting S.R.L. (Romania)
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Limited Bulgaria EOOD
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 (10,00,000) shares ₹10 per share, fully paid up
Infosys Automotive and Mobility GmbH
Infosys Germany GmbH
25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Turkey Bilgi Teknolojileri Limited Sirketi
1,30,842 (1) share Turkish Liras 100 (10,000) per share, fully paid up
Infosys Consulting S.R.L. (Argentina)
2,94,500 (Nil) shares AR$ 100 per share, fully paid up
Infosys Business Solutions LLC
10,000 (Nil) shares USD 100 per share, fully paid up
Investments in redeemable preference shaares of subsidiary
Infosys Singapore Pte. Ltd
45,62,00,000 (24,92,00,000) shares of SGD 1 per share, fully paid up
40,000,000 (Nil) shares of USD 1 per share, fully paid up
Investments carried at fair value through profit or loss (Refer to Note 2.5.2)
Compulsorily convertible debentures
Target maturity fund units
Others (1)
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
As at March 31,
2023
34
2022
34
2
2
1
15
–
7
2
8
2
2
1
15
–
–
–
–
2,831
1,318
11,909
10,379
–
402
82
484
193
3
196
1,742
14
1,756
2,490
6,851
9,341
23,686
7
–
76
83
192
2
194
1,901
–
1,901
3,459
6,853
10,312
22,869
241
Infosys Integrated Annual Report 2022-23
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
Commercial papers
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) Uncalled capital commitments outstanding as of March 31, 2023 and March 31, 2022 was ₹8 crore and ₹11 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
As at March 31,
2023
2022
260
260
420
2,765
3,185
150
–
150
5
876
881
4,476
28,162
12,128
1,050
11,336
16,034
94
854
11,909
1,906
13,603
744
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
(In ₹ crore)
Net gain / (loss) on
Non-convertible debentures
Government securities
Certificates of deposit
Equity and preference securities
242
March 31, 2023
March 31, 2022
Gross
Tax
Net
Gross
Tax
Net
(92)
(150)
(1)
(7)
(1)
8
–
1
(93)
(142)
(1)
(6)
(7)
(56)
2
119
1
22
(1)
(22)
(6)
(34)
1
97
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Method of fair valuation :
Class of investment
Method
Liquid mutual fund units
Target maturity fund units
Quoted price
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
Commercial papers
Certificates of deposit
Quoted price and market observable inputs
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 compulsorily convertible debentures –
carried at fair value through profit or loss
Discounted cash flows method
Others
Total
Discounted cash flows method, Market multiples
method, Option pricing model
Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments.
(In ₹ crore)
Fair value as at March 31,
2023
260
402
2,134
3,366
6,856
420
2,765
196
–
82
2022
1,337
–
2,438
3,873
7,215
–
3,141
194
7
76
16,481
18,281
2.5.1 Business transfer
During the year ending March 31, 2023, the Company entered
into a business transfer agreement to transfer the German branch
to its wholly-owned subsidiary, Infosys BPM Limited effective
February 1, 2023. The business transfer resulted in a transfer
of net assets amounting to ₹1 crore and a business transfer
reserve of ₹18 crore.
Brilliant Basics Limited
On November 1, 2021, the Company entered into a business
transfer agreement to transfer the business of Brilliant
Basics Limited to the Company for a consideration of
₹109 crore resulting in recognition of a business transfer
reserve of ₹62 crore.
The details out the assets and liabilities taken over upon business
transfer are as follows :
Particulars
Goodwill
Net assets / (liabilities), others
Total
Less : Consideration
Business transfer reserve
(In ₹ crore)
Total
44
3
47
109
(62)
2.5.2 Details of investments
The details of investments in preference, equity and other instruments at March 31, 2023 and March 31, 2022 are as follows :
Particulars
Preference securities
Airviz Inc.
2,89,695 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop Inc
1,10,59,340 (1,10,59,340) 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
(In ₹ crore, except as otherwise stated)
As at March 31,
2023
2022
–
53
26
–
150
22
243
Infosys Integrated Annual Report 2022-23
As at March 31,
2023
114
2022
20
–
2
1
–
–
2
–
7
82
278
76
277
(In ₹ crore)
As at March 31,
2023
2022
43
298
183
686
131
1,341
43
320
134
215
15
727
Particulars
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
5,402 (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
1,787 (Nil) Series B 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 Limited (formerly Ideaforge Technology Private Limited)
22,600 (100) equity shares at ₹10, fully paid up
Compulsorily convertible debentures
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
Nil (3,886) compulsorily convertible debentures, fully paid up, par value ₹19,300 each
Others
Stellaris Venture Partners India
2.7 Other financial assets
(In ₹ crore)
As at March 31,
Particulars
2023
2022
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
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 : Allowance for credit impairment
39
39
–
–
–
34
34
–
–
–
Total non-current loans
39
34
Current
Loans considered good – Unsecured
Loans to subsidiaries
Other loans
Loans to employees
Total current loans
Total loans
43
–
248
291
330
219
219
253
244
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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,
2023
2022
21,202
19,454
429
488
20,773
18,966
106
106
–
85
85
–
Total trade receivables (2)
20,773
18,966
(1)
(2)
Includes dues from subsidiaries
Includes dues from companies where
directors are interested
611
–
268
–
Particulars
Current
Security deposits (1)
Rental deposits (1)
Restricted deposits (1)*
Unbilled revenues (1)(5)#
Interest accrued but not due (1)
Foreign currency forward and
options contracts (2)(3)
Net investment in sublease of
right-of-use asset (1)
Others (1)(4)
Total current other financial assets
Total other financial assets
(1) Financial assets carried at amortized
cost
(2) Financial assets carried at fair value
through other comprehensive income
(3) Financial assets carried at fair value
through profit or loss
(4)
(5)
Includes dues from subsidiaries
Includes dues from subsidiaries
As at March 31,
2023
2022
1
5
2,116
5,166
441
79
1
36
1,965
3,543
323
131
48
45
1,232
9,088
10,429
10,350
32
47
1,051
290
536
6,580
7,307
7,176
20
111
220
419
* 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.
The trade receivables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :
Particulars
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
Undisputed trade receivables – considered good
15,579
14,555
5,542
4,703
4
133
Undisputed trade receivables – credit impaired
Disputed trade receivables – considered good
Disputed trade receivables – credit impaired
Less : Allowance for credit loss
Total trade receivables
9
–
–
–
–
–
6
1
–
–
–
–
15,588
14,555
5,548
4,704
2
3
–
–
–
–
6
136
66
10
4
43
–
–
–
4
70
57
4
30
49
31
–
–
2
–
55
61
7
23
34
3
–
–
–
–
41
26
(In ₹ crore)
Total
21,202
19,454
104
81
–
–
2
4
21,308
19,539
535
573
20,773
18,966
245
Infosys Integrated Annual Report 2022-23
2.9 Cash and cash equivalents
Particulars
Balances with banks
(In ₹ crore)
As at March 31,
2023
2022
In current and deposit accounts
4,864
9,375
Particulars
Current
Advances other than capital advances
Payment to vendors for supply of
goods
Cash-on-hand
Others
Deposits with financial institutions
Total cash and cash equivalents
Balances with banks in unpaid dividend
accounts
Deposit with more than 12 months
maturity
Balances with banks held as margin
money deposits against guarantees
–
–
Others
1,670
2,895
6,534
12,270
Prepaid expenses (1)
Unbilled revenues (2)
Deferred contract cost
37
36
Cost of obtaining a contract (3)
700
1,471
–
1
Cost of fulfillment
Withholding taxes and others
Other receivables (1)
Total current other assets
Total other assets
(1)
Includes dues from subsidiaries
As at March 31,
2023
2022
171
183
1,705
6,365
400
109
2,047
123
1,174
5,365
350
40
1,589
234
10,920
8,935
12,708
10,351
198
204
(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. The Company has entered into a financing arrangement
with a third party for these assets which has been considered as
financial liability. (Refer to Note 2.13)
Withholding taxes and others primarily consist of input tax
credits and Cenvat recoverable from Government of India.
Cash and cash equivalents as at March 31, 2023 and
March 31, 2022 include restricted cash and bank balances of ₹46
crore and ₹60 crore, respectively.
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
Advances other than capital advances
Others
Prepaid expenses
Defined benefit plan assets
Deferred contract cost
Cost of obtaining a contract (3)
Cost of fulfillment
Unbilled revenues (2)
Withholding taxes and others
(In ₹ crore)
As at March 31,
2023
2022
141
87
63
9
139
601
167
668
82
10
151
273
156
657
Total non-current other assets
1,788
1,416
246
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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 carried 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 carried at fair value through profit or loss
A financial asset, which is not categorized in any of the above
categories, is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
using the effective interest method, except for contingent
consideration recognized in a business combination, which
is subsequently measured at fair value through profit or loss.
For trade and other payables maturing within one year from the
Balance Sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.
(v) Investment in subsidiaries
Investment in subsidiaries is carried at cost in the separate
financial statements.
b. Derivative financial instruments
The Company holds derivative financial instruments, such as
foreign exchange forward and option contracts, to mitigate the
risk of changes in exchange rates on foreign currency exposures.
The counterparty for such contracts is generally a bank.
(i) Financial assets or financial liabilities, carried 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
forecasted 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.
247
Infosys Integrated Annual Report 2022-23 2.11.4 Fair value of financial instruments
2.11.5 Impairment
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, option pricing
model, market multiples, 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 these instruments.
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 Company 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 recorded is recognized as an impairment
loss or gain 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, 2023 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
Tax-free bonds and government bonds
Liquid mutual fund units
Target maturity fund units
Commercial papers
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
248
6,534
–
1,906
–
–
–
–
–
–
20,773
330
10,350
39,893
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
420
2,765
3,366
6,856
–
–
6,534
6,534
278
278
1,906
2,134 (1)
260
402
420
2,765
3,366
6,856
260
402
420
2,765
3,366
6,856
20,773
20,773
330
330
32
10,429
10,345 (2)
196
–
–
–
–
–
–
–
–
–
–
196
13,439
54,319
54,463
82
–
260
402
–
–
–
–
–
–
47
791
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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
2,426
4,266
11,989
18,681
–
–
–
–
–
–
42
42
–
–
–
–
–
–
14
14
2,426
4,266
12,045
18,737
2,426
4,266
12,045
18,737
(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 ₹84 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, 2022 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)
12,270
Investments (Refer to Note 2.5)
Preference securities, equity
instruments and others
Compulsorily convertible debentures
–
–
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
Liabilities :
Trade payables (Refer to Note 2.14)
Lease Liabilities (Refer to Note 2.3)
Other financial liabilities (Refer to Note 2.13)
Total
–
–
–
–
18,966
253
7,176
40,779
2,669
3,786
10,084
16,539
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
76
7
–
1,337
–
–
–
–
–
111
1,531
–
–
8
8
(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
–
194
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,141
3,873
7,215
–
–
20
12,270
12,270
270
7
2,114
1,337
3,141
3,873
7,215
270
7
2,438 (1)
1,337
3,141
3,873
7,215
18,966
18,966
253
7,307
194
14,249
56,753
–
–
–
–
–
–
3
3
2,669
3,786
10,095
16,550
253
7,216 (2)
56,986
2,669
3,786
10,095
16,550
249
Infosys Integrated Annual Report 2022-23
For trade receivables, 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, 2023 is as follows :
Particulars
Assets
Investments (Refer to Note 2.5)
Tax-free bonds
Target maturity fund units
Government bonds
Liquid mutual fund units
Certificates of deposit
Commercial papers
Non-convertible debentures
Government securities
Equity instruments
Preference securities
Other investments
Others
Derivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward and
option contracts (Refer to Note 2.13)
(In ₹ crore)
As at
March 31,
2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
2,120
1,331
789
402
14
260
2,765
420
3,366
6,856
3
193
82
79
56
402
14
260
–
–
1,364
6,856
–
–
–
–
–
–
–
–
2,765
420
2,002
–
–
–
–
79
56
–
–
–
–
–
–
–
–
3
193
82
–
–
During the year ended March 31, 2023, tax-free bonds and government securities of ₹383 crore were transferred from Level 2 to Level 1 of
fair value hierarchy, since these were valued based on quoted price. Further, non-convertible debentures of ₹1,611 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, 2022 was as follows :
Particulars
Assets
Investments (Refer to Note 2.5)
Tax-free bonds
Government bonds
Liquid mutual fund units
Certificates of deposit
Non-convertible debentures
250
(In ₹ crore)
As at
March 31,
2022
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
2,425
13
1,337
3,141
3,873
1,238
13
1,337
–
3,472
1,187
–
–
3,141
401
–
–
–
–
–
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Particulars
Government securities
Equity instruments
Preference securities
Compulsorily convertible debentures
Other investments
Others
Derivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward and
option contracts (Refer Note 2.13)
As at
March 31,
2022
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
7,215
7,177
38
2
192
7
76
131
11
–
–
–
–
–
–
–
–
–
–
131
11
–
2
192
7
76
–
–
During the year ended March 31, 2022, tax-free bonds 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, non-convertible debentures and
government securities of ₹890 crore were transferred from
Level 1 to Level 2 of fair value hierarchy, since these were valued
based on market observable inputs.
A one percentage point change in the unobservable inputs, used
in fair valuation of Level 3 assets and liabilities, does not have a
significant impact in its value.
Financial risk management
Financial risk factors
The Company's activities expose it to a variety of financial
risks–market risk, credit risk and liquidity risk. The Company's
primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its
financial performance. The primary market risk to the Company
is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures.
The Company's exposure to credit risk is influenced mainly by the
individual characteristic of each customer and the concentration
of risk from the top few customers.
The gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
Market risk
The Company operates internationally and a major portion of
the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk through
its sales and services in the United States and elsewhere, and
purchases from overseas suppliers in various foreign currencies.
The Company holds derivative financial instruments, such as
foreign exchange forward and option 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.
The analysis of the foreign currency risk from financial assets and liabilities as at March 31, 2023 is as follows :
Particulars
US Dollar
Euro
Net financial assets
Net financial liabilities
Total
18,436
(10,017)
8,419
5,442
(1,898)
3,544
UK Pound
Sterling
Australian
Dollar
Other
currencies
1,612
(682)
930
1,765
(926)
839
2,278
(1,082)
1,196
The analysis of the foreign currency risk from financial assets and liabilities as at March 31, 2022 was as follows :
Particulars
US Dollar
Euro
Net financial assets
Net financial liabilities
Total
16,185
(8,202)
7,983
4,148
(1,689)
2,459
UK Pound
Sterling
Australian
Dollar
Other
currencies
1,290
(678)
612
1,314
(956)
358
1,670
(875)
795
(In ₹ crore)
Total
29,533
(14,605)
14,928
(In ₹ crore)
Total
24,607
(12,400)
12,207
251
Infosys Integrated Annual Report 2022-23
Sensitivity analysis between Indian Rupee and US Dollar
Particulars
Impact on the Company's incremental operating margins
Year ended March 31,
2023
0.47%
2022
0.48%
Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency. This is 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 option 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 option contracts are as follows :
Particulars
Derivatives designated as cash flow hedges
As at March 31,
2023
2022
In million
In ₹ crore
In million
In ₹ crore
Forward contracts
In Euro
Option contracts
In Australian Dollar
In Euro
In UK Pound Sterling
Other derivatives
Forward contracts
In Australian Dollar
In Canadian Dollar
In Euro
In New Zealand Dollar
In Norwegian Krone
In Singapore Dollar
In Swiss Franc
In US Dollar
In UK Pound Sterling
In South African rand
Option contracts
In Australian Dollar
In Euro
In UK Pound Sterling
In US Dollar
Total forward and option contracts
252
–
8
67
–
140
325
55
10
–
266
30
100
45
–
770
2,907
559
55
–
2,382
154
79
278
–
185
280
32
–
34
266
20
80
6
14
1,486
12,209
1,004
76
85
30
160
15
300
775
39
165
1,431
153
2,465
24,421
44
45
–
81
–
677
1,050
2,358
318
–
205
2,240
105
70
34
115
7,622
438
24
–
682
–
5,131
20,459
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based on
the remaining period as at the Balance Sheet date :
Particulars
Not later than one month
(In ₹ crore)
As at March 31,
2023
2022
10,972
5,323
Later than one month and not later than three
months
10,122
11,973
Later than three months and not later than
one year
Total
3,327
24,421
3,163
20,459
During the years ended March 31, 2023 and March 31, 2022,
the Company has designated certain foreign exchange forward
and option contracts as cash flow hedges to mitigate the risk
of foreign exchange exposure on highly probable forecasted
cash transactions. The related hedge transactions for balance
in cash flow hedge reserve as at March 31, 2023 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.
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 or Loss at the time of
the hedge relationship rebalancing.
The reconciliation of cash flow hedge reserve for the years ended
March 31, 2023 and March 31, 2022 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,
2023
2022
2
90
10
102
(99)
(113)
2
(5)
3
2
The Company offsets a financial asset and a financial liability
when it currently has a legally enforceable right to set off
the recognized amounts and the Company intends either
to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows :
Particulars
Gross amount of recognized financial asset / liability
Amount set off
Net amount presented in Balance Sheet
(In ₹ crore)
As at March 31, 2023
As at March 31, 2022
Derivative
financial
asset
Derivative
financial
liability
Derivative
financial
asset
Derivative
financial
liability
103
(24)
79
(80)
24
(56)
167
(36)
131
(47)
36
(11)
253
Infosys Integrated Annual Report 2022-23
Credit risk on cash and cash equivalents is limited as the
Company generally invests in deposits with banks and financial
institutions with high ratings, assigned by international
and domestic credit rating agencies. Ratings are monitored
periodically and the Company has considered the latest
available credit ratings as at the date of approval of these
financial statements.
Majority of investments of the Company are fair valued based
on Level 1 or Level 2 inputs. These investments primarily include
investment in liquid mutual fund units, target maturity fund
units, tax free bonds, certificates of deposit, commercial paper,
treasury bills, government securities, 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 Company's
risk management program.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be
able to settle or meet its obligations on time.
The Company's principal sources of liquidity are cash and cash
equivalents and the cash flow that is generated from operations.
The Company has no outstanding borrowings. The Company
believes that the working capital is sufficient to meet its
current requirements.
As at March 31, 2023, the Company had a working capital of
₹24,640 crore including cash and cash equivalents of ₹6,534 crore
and current investments of ₹4,476 crore. 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, 2023 and March 31, 2022, the outstanding
compensated absences were ₹1,969 crore and ₹1,850 crore,
respectively, which have been substantially funded. Accordingly,
no liquidity risk is perceived.
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 ₹20,773 crore and ₹18,966
crore as at March 31, 2023 and March 31, 2022, respectively and
unbilled revenue amounting to ₹12,384 crore and ₹9,279 crore
as at March 31, 2023 and March 31, 2022, 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 five customers and top ten customers are as follows :
Particulars
Year ended March 31,
(In %)
Revenue from top five customers
Revenue from top ten customers
Credit risk exposure
2023
11.3
19.6
2022
11.9
20.5
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, 2023 and
March 31, 2022 is ₹139 crore and ₹93 crore, respectively.
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
2023
673
139
(145)
32
699
2022
615
93
(49)
14
673
254
Infosys Integrated Annual Report 2022-23Standalone Financial Statements –
13
2,426
11,994
(In ₹ crore)
–
10
2,669
10,089
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2023 is as follows :
Particulars
Trade payables
Less than 1
year
2,426
–
–
Other financial liabilities on an undiscounted basis (Refer to
Note 2.13)
10,752
965
264
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2022 was as follows :
1-2 years
2-4 years
4-7 years
Total
(In ₹ crore)
Particulars
Trade payables
Less than 1
year
2,669
–
–
Other financial liabilities on an undiscounted basis (Refer to
Note 2.13)
9,496
381
202
1-2 years
2-4 years
4-7 years
Total
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 general reserve / retained earnings.
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 general reserve on account of
stock options not exercised by employees.
Special Economic Zone (SEZ) Re-investment Reserve
The Special Economic Zone (SEZ) 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.
2.12.1 Equity share capital
Particulars
Authorized
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000)
equity shares
Issued, subscribed and paid-up
(In ₹ crore, except as otherwise stated)
As at March 31,
2023
2022
2,400
2,400
Equity shares, ₹5 par value (1)
2,074
2,103
414,85,60,044 (420,67,38,641) equity
shares fully paid-up
2,074
2,103
(1) Refer to Note 2.22 for details of basic and diluted shares
Forfeited shares amounted to ₹1,500 (₹1,500)
255
Infosys Integrated Annual Report 2022-23
excluding buyback tax) at a price not exceeding ₹1,850 per share
(maximum buyback price), subject to shareholders' approval by
way of postal ballot.
The shareholders approved the proposal of buyback of Equity
Shares recommended by the Board of Directors by way of
e-voting on the postal ballot, the results of which were declared
on December 3, 2022. The buyback was offered to all 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
December 7, 2022 and was completed on February 13, 2023.
During this buyback period, the Company had purchased and
extinguished a total of 6,04,26,348 equity shares from the stock
exchange at a volume weighted average buyback price of
₹1,539.06 per equity share comprising 1.44% of the pre buyback
paid-up equity share capital of the Company. The buyback
resulted in a cash outflow of ₹9,300 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, 2023, the Company has created ‘Capital Redemption
Reserve’ of ₹30 crore equal to the nominal value of the
shares bought back as an appropriation from general reserve
and retained earnings.
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 the Board of Directors in the Annual
General meeting held on June 19, 2021.
The buyback was offered to all 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.
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, 2023 :
Bonus issue
The Company has allotted 218,41,91,490 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 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. These shall be entitled to participate in full,
in any dividend and other corporate action, recommended and
declared after the new equity shares are allotted.
Buyback
In the period of five years immediately preceding March 31, 2023,
including the buyback completed in February 2023, the Company
had purchased and extinguished a total of 22,67,52,951 fully
paid-up equity shares of face value ₹5 each from the stock
exchange. The Company has only one class of equity shares.
Capital Allocation Policy and buyback
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over a
5-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 February 2023
In line with the Capital Allocation Policy, the Board, at its meeting
held on October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (maximum buyback size,
256
Infosys Integrated Annual Report 2022-23Standalone Financial Statements 2.12.3 Dividend
The final dividend on shares is recorded as a liability on the date
of approval by the shareholders. Interim dividends are recorded
as a liability on the date of declaration by the Company's Board.
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 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 ₹)
Final dividend for fiscal 2021
Interim dividend for fiscal 2022
Final dividend for fiscal 2022
Interim dividend for fiscal 2023
2022
15.00
15.00
2023
16.00
16.50
During the year ended March 31, 2023, on account of the final
dividend for fiscal 2022 and interim dividend for fiscal 2023, the
Company has incurred a net cash outflow of ₹13,675 crore.
The Board of Directors, in their meeting held on April 13, 2023,
recommended a final dividend of ₹17.50 per equity share for the
financial year ended March 31, 2023. This payment is subject to
the approval of shareholders in the AGM of the Company to be
held on June 28, 2023 and if approved, would result in a net cash
outflow of approximately ₹7,260 crore.
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 shares
bought back as an appropriation from general reserve.
The Company’s objective when managing capital is to safeguard
its ability to continue as a going concern and to maintain an
optimal capital structure so as to maximize shareholder value.
In order to maintain or achieve an optimal capital structure, the
Company may adjust the amount of dividend payment, return
capital to shareholders, issue new shares or buy back issued
shares. As of March 31, 2023, 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 promoter
The details of the shares held by promoters as at
March 31, 2023 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
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
9,53,57,000
6,08,12,892
4,18,53,808
4,07,83,162
3,89,57,096
3,85,79,304
3,45,50,626
3,43,35,092
3,24,79,590
2,37,04,350
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
2.30
1.47
1.01
0.98
0.94
0.93
0.83
0.83
0.78
0.57
0.40
0.31
0.21
0.13
0.18
0.18
0.12
0.07
0.14
0.33
0.17
0.17
0.16
0.02
0.08
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
257
Infosys Integrated Annual Report 2022-23
The details of shareholders holding more than 5% shares as at March 31, 2023 and March 31, 2022 are as follows :
Name of the shareholder
As at March 31, 2023
As at March 31, 2022
Deutsche Bank Trust Company Americas (Depository of
ADR's - legal ownership)
Number of shares
% held Number of shares
50,57,90,851
12.19
66,63,70,669
% held
15.84
Life Insurance Corporation of India
29,82,44,977
7.19
24,33,47,641
5.78
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2023 and
March 31, 2022 is as follows :
Particulars
As at March 31, 2023
As at March 31, 2022
As at the beginning of the period
420,67,38,641
2,103
426,06,60,846
Add : Shares issued on exercise of employee stock options
Less : Shares bought back
As at the end of the period
22,47,751
6,04,26,348
1
30
18,85,132
5,58,07,337
414,85,60,044
2,074
420,67,38,641
Number of shares
Amount Number of shares
Amount
2,130
1
28
2,103
(In ₹ crore, except as stated otherwise)
2.12.4 Employee Stock Option Plan :
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). These instruments will generally vest over a
period of four years. The plan numbers mentioned are further
adjusted with 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 (NARC). 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 1,21,72,119 shares and 1,37,25,712 shares
as at March 31, 2023 and March 31, 2022, 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, 2023 and March 31, 2022.
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 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 administrator. Each of the above performance parameters will
be distinct for the purposes of calculation of quantity of shares
to vest based on performance. These instruments will generally
vest between a minimum of one to a maximum of three years
from the grant date.
258
Infosys Integrated Annual Report 2022-23Standalone Financial Statements The summary of grants made during the years ended March 31, 2023 and March 31, 2022 is as follows :
Particulars
Equity-settled RSUs
Key Management Personnel (KMP)
Employees other than KMP
Cash-settled RSUs
Key Management Personnel (KMP)
Employees other than KMP
Total Grants
Notes on grants to KMP :
CEO & MD
Based on the recommendations of the Board and the approval of
the shareholders at the AGM held on June 25, 2022, Salil Parekh
has been reappointed as the CEO and MD of the Company for a
term commencing on July 1, 2022 and ending on March 31, 2027.
The remuneration is approved by the shareholders in the AGM.
The revised employment agreement is effective July 1, 2022.
Under the 2015 Plan
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 effective till June
30, 2022, approved the grant of performance-based RSUs of
fair value of ₹13 crore for fiscal 2023 under the 2015 Plan. These
RSUs will vest in line with the employment agreement based on
achievement of certain performance targets. Accordingly, 84,361
performance-based RSUs were granted effective May 2, 2022.
Further, in line with the shareholders approval and revised
employment contract which is effective July 1, 2022, the
Board, on July 24, 2022, based on the recommendations of the
Nomination and Remuneration Committee :
• Approved the grant of performance-based RSUs (Annual
performance equity grant) of fair value of ₹21.75 crore
for fiscal 2023 under the 2015 Plan. These RSUs will
vest in line with the employment agreement based on
achievement of certain performance targets. Accordingly,
140,228 performance-based RSUs were granted effective
August 1, 2022.
• Approved the performance-based grant of RSUs (Annual
performance equity ESG grant) of fair value of ₹2 crore for
fiscal 2023 under the 2015 Plan. These RSUs will vest in line
with the employment agreement based on achievement of
certain environment, social and governance milestones as
determined by the Board. Accordingly, 12,894 performance-
based RSUs were granted effective August 1, 2022.
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2023
2022
2023
2022
2,10,643
1,48,762
3,67,479
2,84,543
37,04,014
27,01,867
17,84,975
13,05,880
39,14,657
28,50,629
21,52,454
15,90,423
–
–
–
–
–
–
92,400
49,960
–
39,14,657
–
28,50,629
92,400
22,44,854
49,960
16,40,383
• Approved the performance-based grant of RSUs (Annual
performance equity TSR grant) of fair value of ₹5 crore for
fiscal 2023 under the 2015 Plan. These RSUs will vest in line
with the employment agreement based on Company’s
performance on cumulative relative TSR over the years and as
determined by the Board. Accordingly, 32,236 performance-
based RSUs were granted effective August 1, 2022.
For the above RSUs, the grant date in accordance with Ind AS 102,
Share-based payment is July 1, 2022.
Further, 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 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 19,341 RSUs was
made effective February 1, 2023 for fiscal 2023.
Though the annual time-based grants and annual performance
equity TSR grant for the remaining employment term ending
on March 31, 2027 have not been granted as of March 31, 2023,
since the service commencement date precedes the grant date,
the Company has recorded employment stock compensation
expense in accordance with Ind AS 102, Share-based payment.
Under the 2019 Plan
The Board, on April 13, 2022, based on the recommendations
of the Nomination and Remuneration Committee, approved
performance-based grant of RSUs amounting to ₹10 crore for
fiscal 2023 under the 2019 Plan. These RSUs will vest in line with
the employment agreement effective till June 30, 2022 based on
achievement of certain performance targets. Accordingly, 64,893
performance-based RSUs were granted effective May 2, 2022.
259
Infosys Integrated Annual Report 2022-23
Other KMP
Under the 2015 Plan
The break-up of employee stock compensation
expense is as follows :
During the year ended March 31, 2023, based on
recommendations of the Nomination and Remuneration
Committee, the Board approved 66,872 time based RSUs and
11,547 performance-based RSUs to other KMP under the 2015
Plan. Time based RSUs will vest over four years and performance-
based RSUs will vest over one to three years based on certain
performance targets.
Particulars
Granted to :
KMP #
Under the 2019 Plan
During the year ended March 31, 2023, based on
recommendations of the Nomination and Remuneration
Committee, the Board approved performance-based grants of
1,45,750 RSUs to other KMPs under the 2019 Plan. These RSUs
will vest over three years based on achievement of certain
performance targets.
Employees other than KMP
Total (1)
(1) Cash-settled stock compensation
expense included in the above
(In ₹ crore)
Year ended March 31,
2023
2022
49
411
460
1
65
307
372
13
#
Includes reversal of employee stock compensation expense on account of
resignation / retirement of key management personnel.
The activity in the 2015 and 2019 Plan for equity-settled share-based payment transactions during the years ended March 31, 2023 and
March 31, 2022 is as follows :
Particulars
Year ended March 31, 2023
Year ended March 31, 2022
Shares arising out
of options
Weighted average
exercise price (₹)
Shares arising out
of options
Weighted average
exercise price (₹)
2015 Plan : RSUs
Outstanding at the beginning
Granted
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
2015 Plan : Employee Stock Options (ESOPs)
Outstanding at the beginning
Granted
Exercised
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
62,32,975
21,52,454
21,05,904
8,71,507
54,08,018
7,87,976
7,00,844
–
5,66,814
–
1,34,030
1,34,030
49,58,938
39,14,657
11,28,626
5,22,931
72,22,038
13,52,150
4.82
5.00
4.50
4.93
5.00
4.97
557
–
596
–
529
529
5.00
5.00
5.00
5.00
5.00
5.00
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
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2015 Plan
on the date of exercise was ₹1,515 and ₹1,705, respectively.
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2019 Plan
on the date of exercise was ₹1,485 and ₹1,560, respectively.
260
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 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)
450-630 (ESOP)
72,22,038
–
1.33
–
5.00
–
54,08,018
1,34,030
1.49
1.77
5.00
529
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 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)
450-650 (ESOP)
49,58,938
-
1.43
–
5.00
–
62,32,975
7,00,844
1.47
0.65
4.82
557
As at March 31, 2023 and March 31, 2022, 2,24,924 and 2,65,561 cash settled options were outstanding, respectively. The carrying value of
liability towards cash-settled share-based payments was ₹4 crore and ₹13 crore as at March 31, 2023 and March 31, 2022 respectively.
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options, and
Monte Carlo simulation model is used for TSR-based options.
The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected
term and the risk-free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of
the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the
options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of
their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated
between each peer entity and the indices as a whole or between each entity in the peer group.
The fair value of each equity settled award is estimated on the date of grant using the following assumptions :
Particulars
For options granted in
Weighted average share price (₹) / ($ ADS)
Exercise price (₹) / ($ ADS)
Expected volatility (%)
Expected life of the option (years)
Expected dividends (%)
Risk-free interest rate (%)
Weighted average fair value as on grant date (₹) / ($ ADS)
Fiscal 2023 –
Equity shares
– RSU
Fiscal 2023 –
ADS – RSU
Fiscal 2022 –
Equity shares
– RSU
Fiscal 2022 –
ADS – RSU
1,525
5.00
23-32
1-4
2-3
5-7
1,210
18.08
0.07
27-34
1-4
2-3
2-5
13.69
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
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.
261
Infosys Integrated Annual Report 2022-23 2.13 Other financial liabilities
Particulars
Non-current
Others
Compensated absences
Accrued compensation to employees (1)
Accrued expenses (1)
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)
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
(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)
(5)
Includes dues to subsidiaries
Includes dues to subsidiaries
(In ₹ crore)
As at March 31,
2023
2022
76
5
1,184
52
1,317
37
3,072
4,430
17
652
1,893
2,540
56
12,697
14,014
11,989
42
14
30
422
86
8
503
79
676
36
2,999
4,603
12
395
1,764
1,449
11
11,269
11,945
10,084
8
3
7
316
(6) Deferred contract cost (Refer to 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.
The Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability. As at March 31,
2023, the financial liability pertaining to such arrangements amounts to ₹114 crore.
Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges,
brand building expenses, overseas travel expenses and office maintenance.
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,
2023
97
2,329
2,426
653
2022
3
2,666
2,669
613
The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) has been determined to the extent such parties have been identified based on the information information
available with the Company.
(In ₹ crore)
262
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Particulars
Amount remaining unpaid :
Principal
Interest
Interest paid by the Company under MSMED Act, 2006 along with the amounts of the payment made to
the supplier beyond the appointed day
Interest due and payable for the period of delay in making payment (which has been paid but
beyond the appointed day during the year) but without adding the interest specified under
the MSMED Act, 2006;
Interest accrued and remaining unpaid at the end of the year
Interest remaining due and payable (pertaining to prior years), until such date when the interest dues
as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible
expenditure under Section 23 of MSMED Act 2006.
The trade payables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :
As at March 31,
2023
2022
97
–
33
–
–
–
3
–
71
–
–
–
(In ₹ crore)
Particulars
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
Outstanding dues to MSME
Others
Total trade payables
97
3
1,943
2,131
2,040
2,134
–
–
386
535
386
535
–
–
–
–
–
–
–
–
–
–
–
–
Relationship with struck-off companies
–
–
–
–
–
–
97
3
2,329
2,666
2,426
2,669
(In ₹ crore)
Name of struck off company
Compulease Networks Private Limited
* Less than ₹1 crore
Nature of transactions Transactions during the
year March 31, 2022
– *
Payables
Balance outstanding
as at March 31, 2022
Relationship with the
struck off company
–
Vendor
There are no transactions with struck-off companies for the year ending March 31, 2023.
263
Infosys Integrated Annual Report 2022-23
(In ₹ crore)
As at March 31,
2023
2022
cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established,
the Company recognizes any impairment loss on the assets
associated with that contract.
Provision for post-sales client support and other provisions
412
332
Particulars
(In ₹ crore)
As at March 31,
2023
2022
2.15 Other liabilities
Particulars
Non-current
Accrued defined benefit liability
(Refer to Note 2.21)
Others
Deferred income
Deferred income – government
grants
Total non-current other
liabilities
Current
Accrued defined benefit liability
(Refer to Note 2.21)
Unearned revenue
Others
Deferred income – government
grants
Withholding taxes and others
Total current other liabilities
Total other liabilities
2.16 Provisions
Accounting policy
2
–
9
19
414
360
2
5,491
28
2,088
7,609
8,023
2
5,179
10
2,190
7,381
7,741
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
264
Current
Others
Post-sales client support and others
Total provisions
1,163
1,163
920
920
The movement in the provision for post-sales client
support is as follows :
Particulars
Year ended March 31, 2023
(In ₹ crore)
Balance at the beginning
Impact on adoption of
amendment to IAS 37
Provision recognized /
(reversed)
Provision utilized
Translation difference
Balance at the end
880
9
356
(128)
46
1,163
Provision for post-sales client support and other provisions
majorly represents costs associated with providing 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. These 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
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
changes in tax rates on deferred income tax assets and liabilities
is recognized as income or expense in the period that includes
the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable
that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized.
Deferred income taxes are not provided on the undistributed
earnings of subsidiaries and branches where it is expected that
the earnings of the subsidiary or branch will not be distributed in
the foreseeable future.
The Company offsets current tax assets and current tax
liabilities; deferred tax assets and deferred 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 is as follows :
Particulars
Year ended March 31,
(In ₹ crore)
Current taxes
Deferred taxes
Income tax expense
2023
8,167
208
8,375
2022
6,960
300
7,260
Income tax expense for the years ended March 31, 2023 and
March 31, 2022 includes reversal (net of provisions) of ₹116 crore
and ₹250 crore, respectively. These reversals pertaining to prior
periods are primarily on account of adjudication of certain
disputed matters, upon filing of tax return and completion of
assessments, across various jurisdictions.
A reconciliation of the income tax provision to the amount
computed by applying the statutory income tax rate to the
income before income taxes is as follows :
Particulars
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
2023
31,643
34.94%
11,057
(2,916)
1,028
(116)
(563)
144
–
(259)
8,375
2022
28,495
34.94%
9,957
(2,849)
958
(250)
(478)
122
(104)
(96)
7,260
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2023 and March 31, 2022 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 and
services 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 (SEZ) 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 years ended March 31, 2023 and
March 31, 2022 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, 2023, Infosys' US branch net assets amounted to
approximately ₹6,948 crore. As at March 31, 2023, the Company
has a deferred tax liability for branch profit tax of ₹148 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 ₹10,948 crore and ₹9,618
crore as at March 31, 2023 and March 31, 2022, respectively,
associated with investments in subsidiaries and branches as
the Company is able to control the timing of reversal of the
temporary difference and it is probable that the temporary
differences will not reverse in the foreseeable future.
The Company majorly intends to repatriate earnings from
subsidiaries and branches only to the extent these can be
distributed in a tax free manner.
Deferred income tax assets have not been recognized on
accumulated losses of ₹1,358 crore and ₹1,345 crore as at
March 31, 2023 and March 31, 2022, respectively as it is probable
that future taxable profit will 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, 2023 will
expire between financial years 2028 to 2030.
265
Infosys Integrated Annual Report 2022-23 The details of income tax assets and income tax liabilities as at March 31, 2023 and March 31, 2022 are as follows :
Particulars
Income tax assets
Current income tax liabilities
Net current income tax assets / (liabilities) at the end
(In ₹ crore)
As at March 31,
2023
5,916
2,834
3,082
2022
5,585
2,179
3,406
The gross movement in the current income tax assets / (liabilities) for the years ended March 31, 2023 and March 31, 2022 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
Impact on account of Ind AS 37 adoption
Translation differences
Net current income tax assets / (liabilities) at the end
(In ₹ crore)
As at March 31,
2023
3,406
7,807
(8,167)
51
(22)
9
(2)
–
3,082
2022
3,550
6,736
(6,960)
63
12
8
–
(3)
3,406
The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2023 is as follows :
Particulars
Deferred income tax assets / (liabilities)
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, 2022
Changes
through
profit and
loss
Changes
through OCI
Impact on
account of
Ind AS 37
adoption
Translation
difference
189
163
169
466
118
(24)
676
(4)
(834)
(830)
40
129
22
36
42
35
68
22
(13)
6
35
(499)
38
(208)
–
–
–
–
–
2
–
–
–
–
–
2
–
–
–
–
2
–
–
–
–
–
–
2
–
–
–
–
–
–
55
–
(67)
–
–
(12)
(In ₹ crore)
Carrying
value as of
March 31,
2023
211
199
211
501
188
–
718
2
(866)
(1,329)
78
(87)
266
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2022 was as follows :
Particulars
Deferred income tax assets / (liabilties)
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
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 tax effects of significant temporary differences that resulted
in deferred income tax assets and liabilities are as follows :
2.18 Revenue from operations
Accounting policy
Particulars
Deferred income tax assets after set off
Deferred income tax liabilities after set off
(In ₹ crore)
As at March 31,
2023
779
(866)
2022
970
(841)
When assessing the reliability of deferred income tax assets, the
Management considers whether a portion or the entire deferred
income tax assets will not be realized. The ultimate realization
of deferred income tax assets depends on 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.
The Company derives revenues primarily from IT services
comprising software development and related services, cloud
and infrastructure services, maintenance, consulting and
package implementation, 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 in writing, by the parties to the contract, the parties
have committed to perform their 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.
267
Infosys Integrated Annual Report 2022-23
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 are used to
determine progress towards completion as there is a direct
relationship between input and productivity. Progress towards
completion is measured as the ratio of costs or efforts incurred to
date (representing work performed) to the estimated total costs
or efforts. Estimates of transaction price and total costs or efforts
are continuously monitored over the term of the contracts and
are recognized in net profit in the period when these estimates
change or when the estimates are revised. Revenues and the
estimated total costs or efforts are subject to revision as the
contract progresses. Provisions for estimated losses, if any, on
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
revenues, while billing in excess of revenues is classified as
contract liabilities (which we refer to as "unearned revenues").
In arrangements for software development and related services
and maintenance services, the revenue recognition criteria
for each distinct performance obligation is applied and the
arrangements with customers generally meet this criteria for
considering software development and related service 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 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 while 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 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.
268
Infosys Integrated Annual Report 2022-23Standalone Financial Statements Certain eligible, non-recurring costs (e.g. set-up or transition
or transformation costs) that do not represent a separate
performance obligation are recognized as an asset when
such costs (a) relate directly to the contract; (b) generate
or enhance resources of the Company that will be used in
satisfying the performance obligation in the future; and
(c) are expected to be recovered.
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 the 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 years ended March 31, 2023 and
March 31, 2022 is as follows :
Particulars
(In ₹ crore)
Year ended March 31,
2023
2022
Revenue from software services
1,23,755
1,03,615
Revenue from products and
platforms
Total revenue from operations
259
1,24,014
325
1,03,940
Disaggregated revenue information
The table below presents disaggregated revenues from contracts
with customers by offerings for the years ended March 31, 2023
and March 31, 2022, 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,
2023
2022
46,043
77,971
43,410
60,530
1,24,014
1,03,940
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
cyber security 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 derives revenues from the sale of products and
platforms including Infosys Applied AI which applies next-
generation AI and machine learning.
The percentage of revenue from fixed-price contracts for
each of the years ended March 31, 2023 and March 31, 2022 is
approximately 55% and 53%, respectively.
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 depends 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, 2023 and March 31, 2022 , the
company recognized revenue of ₹4,391 crore and ₹2,831 crore
arising from opening unearned revenue as of April 1, 2022 and
April 1, 2021, respectively.
During the years ended March 31, 2023 and March 31, 2022,
5,378 crore and ₹3,711 crore of unbilled revenue pertaining
to other fixed price and fixed-timeframe contracts as
of April 1, 2022 and April 1, 2021, 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
269
Infosys Integrated Annual Report 2022-23
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, 2023, other
than those meeting the exclusion criteria mentioned above, is
₹70,680 crore. Out of this, the Company expects to recognize
revenue of around 57.7% 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, 2022 is ₹65,748 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
2.19.1 Other income
Accounting policy
Other income is comprised primarily of interest income, dividend
income, gain / loss on investments and exchange gain / loss on
forward and options contracts, and on translation of foreign
currency assets and liabilities. Interest income is recognized using
the effective interest method. Dividend income is recognized
when the right to receive payment is established.
2.19.2 Foreign currency
Accounting policy
Functional currency
The functional currency of the Company is the Indian Rupee.
These financial statements are presented in Indian Rupees
(rounded off to crore; one crore equals ten million).
Transactions and translations
Foreign-currency denominated monetary assets and liabilities
are translated into the relevant functional currency at exchange
rates in effect at the Balance Sheet date. The gains or losses
resulting from such translations are recognized in the Statement
of Profit and Loss and reported within exchange gains / (losses)
on translation of assets and liabilities, net, except when deferred
in Other Comprehensive Income as qualifying cash flow hedges.
Non-monetary assets and non-monetary liabilities denominated
in a foreign currency and measured at fair value are translated at
the exchange rate prevalent at the date when the fair value was
determined. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at historical
cost are translated at the exchange rate prevalent at the date of
the transaction. The related revenue and expense are recognized
using the same exchange rate.
270
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 will
be complied with, and the grants will be received. Government
grants related to assets are treated as deferred income and are
recognized in the net profit in the Statement of Profit and Loss
on a systematic and rational basis over the useful life of the
asset. Government grants related to revenue are recognized on
a systematic basis in the net profit in the Statement of Profit and
Loss over the periods necessary to match them with the related
costs which they intend to compensate.
Other income for the years ended March 31, 2023 and
March 31, 2022 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
carried at fair value through other
comprehensive income
Non-convertible debentures,
commercial papers, 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
Gain / (loss) on liquid mutual funds
and other investments
Dividend received from subsidiary (1)
Exchange gains / (losses) on foreign
currency forward and options contracts
Exchange gains / (losses) on translation
of other assets and liabilities
Miscellaneous income, net
Total other income
(In ₹ crore)
Year ended March 31,
2023
2022
148
567
151
668
850
580
1
1
142
1,463
127
1,218
(531)
189
960
259
3,859
105
185
3,224
(1) The Company received dividend from its wholly-owned subsidiaries
(Refer to Note 2.24).
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
2.20 Expenses
Particulars
Employee benefit expenses
(In ₹ crore)
2.21 Employee benefits
Accounting policy
Year ended March 31,
2.21.1 Gratuity and pensions
2023
2022
Salaries including bonus
60,194
49,575
Contribution to provident and other
funds
Share-based payments to employees
(Refer to Note 2.12)
Staff welfare
1,914
1,417
460
196
372
300
62,764
51,664
Cost of software packages and others
For own use
1,454
1,062
Third-party items bought for service
delivery to clients
3,760
5,214
1,923
2,985
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 *
Others
155
756
22
217
922
23
140
121
15
93
444
12
205
824
29
135
77
11
183
117
7
–
–
5
–
–
437
283
3,281
397
141
2,490
* During the year ended March 31, 2022, in accordance with the Companies
(Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the
Rules”), the Company transferred certain assets to its controlled subsidiary
‘Infosys Green Forum’, a Company created under Section 8 of the
Companies Act, 2013.
The Company provides for gratuity, a defined benefit retirement
plan ("the Gratuity Plan") covering eligible Indian employees of
Infosys. The Gratuity Plan provides a lumpsum payment to vested
employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee's
salary and the tenure of employment with the Company.
The Company contributes gratuity liabilities to the Infosys
Limited Employees' Gratuity Fund Trust ("the Trust"). Trustees
administer contributions made to the 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 and / or a lumpsum
payment as set out in rules of each fund and includes death
and disability benefits. The defined benefit plans require
contributions, which are based on a percentage of salary that
varies depending on the age of the respective employees.
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, 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.
271
Infosys Integrated Annual Report 2022-23
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.
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
a. Gratuity and pension
determined by actuarial valuation performed by an independent
actuary at each Balance Sheet date. This is done 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 details of the defined benefit retirement plans and the amounts recognized in the standalone financial statements as at March 31,
2023 and March 31, 2022 are as follows :
Gratuity
As at March 31,
Pension
As at March 31,
2023
2022
2023
2022
(In ₹ crore)
Particulars
Change in benefit obligations
Benefit obligations at the beginning
Service cost
Interest expense
Past-service cost – Plan amendments
Transfer
Remeasurements – Actuarial (gains) / losses
Employee contribution
Benefits paid
Translation difference
Benefit obligations at the end
Change in plan assets
1,467
249
88
1
3
(65)
–
(233)
14
1,524
1,382
193
77
–
3
69
–
(257)
–
1,467
Fair value of plan assets at the beginning
1,477
1,391
Interest income
Transfer
Remeasurements – Return on plan assets excluding amounts
included in interest income
Employee contribution
Employer contribution
Benefits paid
Translation difference
Fair value of plan assets at the end
Funded status
Defined benefit plan asset
Defined benefit plan liability
272
91
4
20
–
155
(231)
–
1,516
(8)
9
(17)
84
3
21
–
235
(257)
–
1,477
10
10
–
610
23
3
–
–
(76)
18
(45)
58
591
534
2
–
(46)
18
22
(45)
52
537
(54)
–
(54)
541
24
2
14
–
2
20
(19)
26
610
434
1
–
52
20
23
(19)
23
534
(76)
–
(76)
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Statement of Profit and Loss under employee
benefit expense, are as follows :
Particulars
Service cost
Net interest on the net defined benefit liability / asset
Plan amendments
Net cost
(In ₹ crore)
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
249
(3)
1
247
2022
193
(7)
–
186
2023
2022
23
1
–
24
24
1
14
39
The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Statement of Other Comprehensive Income are as follows :
Particulars
Remeasurements of the net defined benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets, excluding amounts included in the net
interest on the net defined benefit liability / (asset)
Particulars
(Gain) / loss from change in demographic assumptions
(Gain) / loss from change in financial assumptions
(Gain) / loss from change in experience assumptions
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
2022
2023
2022
(In ₹ crore)
(65)
(20)
(85)
69
(21)
48
(76)
46
(30)
2
(52)
(50)
(In ₹ crore)
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
–
(54)
(11)
(65)
2022
–
(33)
102
69
2023
–
(82)
6
(76)
2022
(1)
(7)
10
2
The weighted-average assumptions used to determine benefit obligations as at March 31, 2023 and March 31, 2022 are as follows :
Particulars
Discount rate (1)
Weighted average rate of increase in compensation levels (2)
Gratuity
As at March 31,
2023
7.1%
6%
2022
6.5%
6%
Weighted average duration of defined benefit obligation (3)
5.9 years
5.9 years
Pension
As at March 31,
2023
2022
1.8%- 3.4%
0.4%- 1.25%
1%-3%
12 years
1%-3%
14 years
273
Infosys Integrated Annual Report 2022-23
The weighted-average assumptions used to determine net periodic benefit cost for the years ended March 31, 2023 and
March 31, 2022 are as follows :
Particulars
Discount rate
Weighted-average rate of increase in compensation levels
(In %)
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
6.5
6
2022
6.1
6
2023
0.4-1.25
1-3
2022
0.1-0.85
1-3
(1) For domestic defined benefit plan in India, the market for high quality corporate bonds being not developed, the yield of government bonds is considered
as the discount rate. For most of our overseas defined benefit plan, given that the market for high quality corporate bonds is not developed, the government
bond rate adjusted for corporate spreads is used.
(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, inflation in respective markets 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 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 post-
employment benefit obligation.
For domestic defined benefit plan in India, assumptions
regarding future mortality experience are set in accordance
with the published statistics by the Life Insurance Corporation
of India. For overseas defined benefit plan, the assumptions
regarding future mortality experience are set with regard to
the latest statistics in life expectancy, plan experience and
other relevant data.
The Company assesses all the above assumptions with its projected
long-term plans of growth and prevalent industry standards.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys Limited Employees' Gratuity Fund
Trust. Trustees administer contributions made to the trust.
The plan assets of the overseas defined benefit plan have been
primarily invested in insurer managed funds and the asset
allocation for plan assets is determined based on the investment
criteria prescribed under the relevant regulations applicable
to pension funds and the insurer managers. The insurers'
investment are well diversified and also provide for guaranteed
interest rates arrangements.
Actual return on assets (including remeasurement) of the gratuity
plan for the years ended March 31, 2023 and March 31, 2022 were
₹111 crore and ₹105 crore, respectively and for the pension plan
were (₹44) crore and ₹53 crore, respectively.
The contributions for gratuity are invested in a scheme with the
Life Insurance Corporation of India as permitted by Indian law.
The details of major plan assets into various categories as at
March 31, 2023 and March 31, 2022 are as follows :
These defined benefit plans expose the Company to actuarial risk
which are set out below :
•
•
Interest rate risk : The present value of the defined benefit
plan liability is generally calculated using a discount rate
determined with reference to government bond yields and
in certain overseas jurisdictions, it is calculated in reference
to government bond yield adjusted for a corporate spread.
If bond yields fall, the defined benefit obligation will tend to
increase.
Life expectancy and investment risk : The pension fund
offers the choice between a lifelong pension and a cash
lumpsum upon retirement. The pension fund has defined
rates for converting the lumpsum to a pension and there is
the risk that the members live longer than implied by these
conversion rates and that the pension assets don’t achieve
the investment return implied by these conversion rates.
• Asset volatility : A proportion of the pension fund is held in
equities, which is expected to outperform corporate bonds
in the long term but give exposure to volatility and risk in the
short term. The pension fund board of insurer is responsible
for the investment strategy and equity allocation is justified
given the long-term investment horizon of the pension fund
and the objective to provide a reasonable long term return
on members’ account balances.
The sensitivity of significant assumptions used for valuation of
defined benefit obligation is as follows :
Particulars
Equity
Bonds
Real estate / property
Cash and cash equivalents
Other
274
(In %)
As at March 31,
2023
2022
Impact from
34
32
26
1
7
34
32
26
1
7
Discount rate
Weighted average rate of increase in
compensation level
(In ₹ crore)
As at March 31, 2023
Gratuity
Pension
1% point
increase /
decrease
0.5% point
increase /
decrease
84
76
24
3
Infosys Integrated Annual Report 2022-23Standalone Financial Statements Sensitivity for significant actuarial assumptions is computed
by varying one actuarial assumption used for the valuation,
keeping all other actuarial assumptions constant.
In practice, this is not probable, and changes in some of the
assumptions may be correlated.
The Company expects to contribute ₹195 crore to gratuity and
₹25 crore to pension during the fiscal 2024.
Maturity profile of defined benefit obligation is as follows :
Particulars
Within 1 year
1-2 years
2-3 years
3-4 years
4-5 years
5-10 years
b. Superannuation
(In ₹ crore)
Gratuity
Pension
211
222
229
265
346
36
35
40
39
42
1,807
203
The Company contributed ₹468 crore and ₹342 crore to the
Superannuation trust during the years ended March 31, 2023 and
March 31, 2022 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.
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, 2023 and March 31,
2022 is as follows :
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
(In ₹ crore)
As at March 31,
2023
2022
9,304
814
1,689
625
(82)
(1,823)
10,527
8,287
656
1,153
516
118
(1,426)
9,304
Particulars
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
Employer contribution
Employee contribution
Benefits paid
Fair value of plan assets at the end
Net liability
As at March 31,
2023
2022
9,058
609
8,140
507
(186)
837
1,689
(1,823)
10,184
(343)
18
666
1,153
(1,426)
9,058
(246)
Amount for the years ended March 31, 2023 and March 31, 2022
recognized in the Statement of Other Comprehensive
Income is as follows :
Particulars
Remeasurements of the net defined
benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets excluding
amounts included in the net interest on
the net defined benefit liability / (asset)
(In ₹ crore)
Year ended March 31,
2023
2022
(82)
186
118
(18)
104
100
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,
2023
7.10%
8.15%
2022
6.50%
7.70%
Remaining term to maturity of portfolio
6 years
6 years
Expected guaranteed interest rate
8.15%
8.10%
(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.
275
Infosys Integrated Annual Report 2022-23
The breakup of the plan assets into various categories as at
March 31, 2023 and March 31, 2022 is as follows :
2.22 Reconciliation of basic and diluted shares used in
computing earnings per equity share
Particulars
Central and State government bonds
Public sector undertakings and private
sector bonds
Others
(In %)
As at March 31,
2023
2022
60
33
7
57
37
6
The asset allocation for plan assets is determined based on the
investment criteria prescribed under the relevant regulations.
The actuarial valuation of PF liability exposes the Company to
interest rate risk. The defined benefit obligation calculated uses a
discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.
As at March 31, 2023, the defined benefit obligation would
be affected by approximately ₹48 crore and ₹97 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Company contributed ₹1,053 crore and ₹768 crore to the
provident fund during the years ended March 31, 2023 and
March 31, 2022, 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
2023
2022
60,973
50,338
468
342
1,323
62,764
984
51,664
(1)
Includes employee stock compensation expense of ₹460 crore and ₹372
crore for the years ended March 31, 2023 and March 31, 2022, respectively
(Refer to Note 2.12).
Accounting policy
Basic earnings per equity share is computed by dividing the net
profit attributable to the equity holders of the Company by the
weighted average number of equity shares outstanding during
the period. Diluted earnings per equity share is computed by
dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also
the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for the
proceeds receivable, had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding
equity shares). Dilutive potential equity shares are deemed
converted as at the beginning of the period, unless issued at
a later date. Dilutive potential equity shares are determined
independently for each period presented.
The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues, for changes effected
prior to the approval of the financial statements by the Board.
The 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,
2023
2022
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
419,38,13,881
422,43,39,562
44,20,497
52,06,766
419,82,34,378 422,95,46,328
For the years ended March 31, 2023 and March 31, 2022, there
were 271 and Nil options to purchase equity shares which had an
anti-dilutive effect.
276
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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 ₹6,115 crore (₹5,617 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 *
* Uncalled capital pertaining to investments
(In ₹ crore)
As at March 31,
2023
2022
4,316
4,245
824
1,092
8
11
(1) As at March 31, 2023 and March 31, 2022, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹3,953 crore
and ₹3,898 crore, respectively.
The claims against the Company primarily 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, and payments made to
Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Income tax 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 ₹6,105 crore and ₹5,607 crore as at March 31, 2023 and March 31, 2022, respectively.
(2) Capital contracts primarily comprise commitments for infrastructure facilities and computer equipments.
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)(26)
Infosys Chile SpA (1)
Infosys Arabia Limited (2)(26)
Infosys Consulting Ltda.(1)
Infosys Luxembourg S.a.r.l (1)
Infosys Americas Inc. (Infosys Americas) (1)(26)
Country
Holdings as at March 31,
2023
2022
(In %)
China
Mexico
Sweden
China
US
India
Austria
India
Chile
Saudi Arabia
Brazil
Luxembourg
US
100
100
100
100
100
100
100
100
100
70
100
100
100
100
100
100
100
100
100
100
100
100
70
100
100
100
277
Infosys Integrated Annual Report 2022-23
Name of subsidiaries
Country
Holdings as at March 31,
Infosys Public Services, Inc. USA (Infosys Public Services) (1)
Infosys Canada Public Services Inc (19)(35)
Infosys BPM Limited (1)(43)
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)
US
Canada
India
Czech Republic
Poland
US
Australia
US
Switzerland
Australia
Switzerland
Germany
Romania
France
Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.) (4)(34)
Czech Republic
Infosys Consulting (Shanghai) Co., Ltd. (4)(30)
Infy Consulting Company Ltd (4)
Infy Consulting B.V.(4)
Infosys Consulting S.R.L. (45)
Infosys Consulting (Belgium) NV (4)
Panaya Inc. (Panaya) (1)
Panaya Ltd. (6)
Infosys Financial Services GmbH. (formerly Panaya GmbH) (54)
Brilliant Basics Holdings Limited (Brilliant Basics) (1)(26)
Brilliant Basics Limited (7)(26)
Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (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)
Infosys Compaz Pte. Ltd (9)
Infosys South Africa Pty Ltd (8)
WongDoody Holding Company Inc. (WongDoody) (1)(36)
WDW Communications, Inc (10)(37)
WongDoody, Inc (10)(38)
HIPUS Co., Ltd (9)
Stater N.V. (9)
Stater Nederland B.V. (12)
Stater XXL B.V. (12)
HypoCasso B.V. (12)
Stater Participations B.V. (12)
Stater Belgium N.V./S.A. (13)
Stater Gmbh (12)(28)
278
China
UK
The Netherlands
Argentina
Belgium
US
Israel
Germany
UK
UK
Singapore
Dubai
Finland
Sweden
Norway
Denmark
Slovakia
Singapore
South Africa
US
US
US
Japan
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
Belgium
Germany
2023
100
–
2022
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
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
100
100
100
100
100
100
100
60
100
–
–
100
81
75
75
75
75
75
75
75
Infosys Integrated Annual Report 2022-23Standalone Financial Statements Name of subsidiaries
Country
Holdings as at March 31,
Outbox systems Inc. dba Simplus (US) (15)
Simplus North America Inc. (16)(27)
Simplus ANZ Pty Ltd (16)
Simplus Australia Pty Ltd (17)
Sqware Peg Digital Pty Ltd (18)(31)
Simplus Philippines, Inc. (16)
Simplus Europe, Ltd. (16)(29)
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd) (11)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd) (20)
Infosys Limited Bulgaria EOOD (1)
Kaleidoscope Animations, Inc. (15)
Kaleidoscope Prototyping LLC (22)
GuideVision s.r.o. (14)
GuideVision Deutschland GmbH (21)
GuideVision Suomi Oy (21)
GuideVision Magyarország Kft (21)
GuideVision Polska Sp. z.o.o (21)
GuideVision UK Ltd (21)(26)
Blue Acorn iCi Inc (formerly Beringer Commerce Inc) (15)
Beringer Capital Digital Group Inc (15)(41)
Mediotype LLC (23)(41)
Beringer Commerce Holdings LLC (23)(41)
SureSource LLC (24)(39)
Blue Acorn LLC (24)(39)
Simply Commerce LLC (24)(39)
iCiDIGITAL LLC (25)(40)
Infosys BPM UK Limited (3)
Infosys Turkey Bilgi Teknolojileri Limited Sirketi (1)
Infosys Germany Holding Gmbh (1)
Infosys Automotive and Mobility GmbH & Co. KG (1)
Infosys Green Forum (1)(32)
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Bulgaria
US
US
Czech Republic
Germany
Finland
Hungary
Poland
UK
US
US
US
US
US
US
US
US
UK
Turkey
Germany
Germany
India
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.) (33)
Malaysia
Infosys Business Solutions LLC (1)(42)
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (44)
oddity GmbH (46)
oddity (Shanghai) Co., Ltd. (47)
oddity Limited (Taipei) (47)
oddity space GmbH (46)
oddity jungle GmbH (46)
oddity code GmbH (46)
oddity code d.o.o (48)
oddity waves GmbH (46)
oddity group services GmbH (46)
Infosys Public Services Canada Inc.(19)(5)
BASE life science AG (50)
Qatar
Germany
Germany
China
Taiwan
Germany
Germany
Germany
Serbia
Germany
Germany
Canada
Switzerland
2023
100
2022
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
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
–
–
–
–
–
–
–
–
–
–
–
–
–
279
Infosys Integrated Annual Report 2022-23 Name of subsidiaries
BASE life science GmbH (50)
BASE life science A/S (49)
BASE life science S.A.S (50)
BASE life science Ltd. (50)
BASE life science S.r.l. (50)
Innovisor Inc.(50)
BASE life science Inc. (50)
BASE life science S.L. (50)(51)
Panaya Germany GmbH (6)(52)
Infosys Norway (8)(53)
Country
Holdings as at March 31,
2023
2022
Germany
Denmark
France
UK
Italy
US
US
Spain
Germany
Norway
100
100
100
100
100
100
100
100
100
100
–
–
–
–
–
–
–
–
–
–
(1) Wholly-owned subsidiary of Infosys Limited
(34) Liquidated effective December 16, 2021
(2) Majority-owned and controlled subsidiary of Infosys Limited
(35) Liquidated effective November 23, 2021
(3) Wholly-owned subsidiary of Infosys BPM Limited
(36) Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
Inc, effective December 31, 2021
(5)
Incorporated on July 8, 2022
(6) Wholly-owned subsidiary of Panaya Inc.
(7) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(8) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd.
(formerly Infosys Consulting Pte. Ltd.)
(9) Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd.
(37) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021
(38) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(39) Merged with Beringer Commerce Holdings LLC, effective January 1, 2022
(40) Merged with Beringer Capital Digital Group Inc, effective January 1, 2022
(41) Merged with Blue Acorn iCi Inc, effective January 1, 2022
(formerly Infosys Consulting Pte. Ltd.)
(42) Incorporated on February 20, 2022
(10) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(43) On March 17, 2022, Infosys Limited acquired non-controlling interest of
(WongDoody)
(11) Wholly-owned subsidiary of Fluido Oy
(12) Wholly-owned subsidiary of Stater N.V
(13) Majority-owned and controlled subsidiary of Stater Participations B.V.
(14) Wholly-owned subsidiary of Infy Consulting Company Limited
(15) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(16) Wholly-owned subsidiary of Outbox Systems Inc.
(17) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(18) Wholly-owned subsidiary of Simplus Australia Pty Ltd
(19) Wholly-owned subsidiary of Infosys Public Services, Inc.
(20) Wholly-owned subsidiary of Infosys Fluido UK, Ltd.
(formerly Simplus UK, Ltd)
(21) Wholly-owned subsidiary of GuideVision s.r.o.
(22) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(23) Wholly-owned subsidiary of Blue Acorn iCi Inc
(24) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(25) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(26) Under liquidation
(27) Liquidated effective April 27,2021
(28) Incorporated on August 4, 2021
(29) Liquidated effective July 20, 2021
(30) Liquidated effective September 1, 2021
(31) Liquidated effective September 2, 2021
(32) Incorporated on August 31, 2021
(33) On December 14, 2021, Infosys Singapore Pte. Ltd (formerly 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.)
280
0.01% of the voting interests in Infosys BPM Limited.
(44) On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly 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”)).
(45) Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiary
of Infosys Consulting Holding AG) became the majority-owned and
controlled subsidiary of Infosys Limited with effect from April 1, 2022
(46) On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH
(“Kristall”)) (a wholly-owned subsidiary of Infosys Singapore Pte. Ltd
(formerly Infosys Consulting Pte. Ltd.) acquired 100% of voting interests in
oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity
group services GmbH, oddity code GmbH and oddity GmbH.
(47) Wholly-owned subsidiary of oddity GmbH
(48) Wholly-owned subsidiary of oddity code GmbH.
(49) On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.) (a wholly-owned subsidiary of Infosys Limited)
acquired 100% of voting interests in BASE life science A/S.
(50) Wholly-owned subsidiary of BASE life science A/S
(51) Incorporated on September 6, 2022
(52) Incorporated effective December 15, 2022
(53) Incorporated effective February 7, 2023.
(54) Infosys Financial Services GmbH. (formerly Panaya GmbH) became a
wholly-owned subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.) with effect from February 23, 2023.
Infosys has provided guarantee for performance of certain
contracts entered into by its subsidiaries.
Infosys Integrated Annual Report 2022-23Standalone Financial Statements 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 *
* Effective January 1, 2022
Country
Nature of relationship
India
India
India
India
India
India
India
India
Post-employment benefit plan of Infosys Limited
Post-employment benefit plan of Infosys Limited
Post-employment benefit plan of Infosys Limited
Controlled trust
Controlled trust
Controlled trust
Controlled trust
Trust jointly controlled by KMP
Refer to Note 2.21 for information on transactions with post-employment benefit plans mentioned above.
List of key management personnel
Whole-time directors
The details of amounts due to or due from related parties as at
March 31, 2023 and March 31, 2022 are as follows :
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
• D. Sundaram (appointed as lead independent director
effective March 23, 2023)
• Kiran Mazumdar-Shaw (retired as lead independent director
effective March 22, 2023)
• Micheal Gibbs
• Uri Levine
• Bobby Parikh
• Chitra Nayak
• Govind Iyer (appointed as an independent director effective
January 12, 2023)
Executive officers
Nilanjan Roy, Chief Financial Officer
Inderpreet Sawhney, Group General Counsel and
Chief Compliance Officer
Shaji Mathew (appointed as Group Head - Human Resources
effective March 22, 2023)
Krishnamurthy Shankar (retired as Group Head - Human
Resources effective March 21, 2023)
Mohit Joshi (resigned as President effective March 11, 2023
and will be on leave till his last date with the company which
will be June 9, 2023)
Ravi Kumar S (resigned as President effective October 11, 2022)
Company Secretary
A. G. S. Manikantha
Particulars
Trade receivables
BASE life science A/S
Infosys China
Infosys Mexico
Infosys BPM Limited
Infosys BPO Americas LLC
Infy Consulting Company Limited
Infosys Public Services
Infosys Shanghai
Infosys Sweden
Fluido Oy
Simplus Australia Pty Ltd
Infosys McCamish Systems LLC
Panaya Ltd
Infosys Compaz Pte Ltd
Stater Nederland B.V.
Outbox systems Inc. dba Simplus (US)
Infosys Luxembourg S.a.r.l
Infosys Chile SPA
Infosys South Africa Pty Ltd
Infosys Automotive and Mobility GmbH
& Co. KG
Infosys Middle East FZ LLC
Loans
Infosys Turkey Bilgi
Teknolojileri Limited Sirketi (1)
(In ₹ crore)
As at March 31,
2023
2022
1
1
2
10
–
11
90
–
6
1
1
66
2
61
7
1
47
1
5
283
15
611
43
43
–
6
1
7
12
3
95
1
16
1
–
76
1
8
–
–
28
2
–
–
11
268
–
–
281
Infosys Integrated Annual Report 2022-23
Particulars
As at March 31,
Particulars
2023
2022
Prepaid expense and other assets
Unbilled revenues
As at March 31,
2023
2022
Infosys Automotive and Mobility GmbH
& Co. KG
925
156
Panaya Ltd
GuideVision, s.r.o.
Infosys Green Forum
Other financial assets
Infosys BPM Limited
Infosys Consulting GmbH
Infosys China
Infosys Shanghai
Infy Consulting Company Limited
Infosys Management Consulting Pty Ltd
Infosys Consulting AG
Infosys Consulting Ltda
Infy Consulting B.V.
Fluido Oy
Panaya Ltd
Infosys McCamish Systems LLC
Infosys Singapore Pte. Ltd
Infosys Poland Sp. Z.o.o
Fluido Denmark A/S
Infosys Consulting S.R.L. (Romania)
Infosys Green Forum
Infosys Consulting (Belgium) NV
WongDoody, Inc
Infosys Public Services
Simplus Philippines, Inc.
Outbox systems Inc. dba Simplus (US)
Infosys Luxembourg S.a.r.l
Infosys Business Solutions LLC
Infosys Compaz PTE Ltd
Kaleidoscope Animations, Inc.
Portland Group Pty Ltd
GuideVision, s.r.o.
Infosys (Czech Republic) Limited s.r.o.
Infosys Sweden
Infosys Middle East FZ LLC
HIPUS Co., Ltd
EdgeVerve
282
193
203
EdgeVerve
1
4
1
–
Infosys Consulting Ltda
Blue Acorn iCi Inc
198
204
Portland Group Pty Ltd
13
3
20
4
12
1
3
1
2
1
1
32
1
7
3
12
3
7
1
2
1
2
–
1
6
1
3
1
1
–
3
3
6
1
1
2
1
1
1
1
1
1
1
1
1
2
2
1
1
2
3
3
4
1
–
1
–
–
–
–
–
–
–
–
–
–
Infosys Automotive and Mobility GmbH
& Co. KG
Infosys Austria GmbH
Infosys (Czech Republic) Limited s.r.o.
Infy Consulting Company Limited
Infosys Consulting S.R.L.(Romania)
Infosys Sweden
Infosys China
Infosys Turkey Bilgi Teknolojileri Limited
Sirketi
Infosys Singapore Pte. Limited
Infosys McCamish Systems LLC
Infosys Mexico
Infosys Poland sp. z o o
Stater Nederland B.V.
Trade payables
Infosys China
Infosys BPM Limited
Infosys (Czech Republic) Limited s.r.o.
Infosys Mexico
Infosys Sweden
Infosys Shanghai
Infosys Management Consulting Pty Ltd
Infosys Singapore Pte. Ltd.
Infosys (Malaysia) SDN. BHD. (formerly
Global Enterprise International (Malaysia)
Sdn. Bhd.)
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. (Romania)
1,051
220
Fluido Oy
oddity jungle GmbH
Fluido Sweden AB
107
4
–
2
–
2
–
5
2
1
10
3
6
64
4
1
2
201
2
2
4
1
1
9
2
5
137
115
3
2
6
2
–
4
290
419
15
136
26
24
57
13
19
15
28
152
18
16
69
23
14
7
5
14
1
28
4
2
2
24
19
6
1
6
–
13
1
1
8
3
4
14
17
12
–
14
Infy Consulting Company Limited
149
118
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
The details of the related parties transactions entered into
by the Company for the years ended March 31, 2023 and
March 31, 2022 are as follows :
Outbox systems Inc. dba Simplus (US)
33
17
Particulars
EdgeVerve
WongDoody, Inc
Fluido Denmark A/S
Infosys Fluido UK Ltd
Infosys Automotive and Mobility GmbH
& Co. KG
Infosys Limited Bulgaria EOOD
oddity Limited(Taipei)
Infosys Consulting Ltda
BASE life science A/S
Other financial liabilities
Infosys BPM Limited
Infosys Consulting AG
Infosys Mexico
Infosys China
Infosys Shanghai
GuideVision Suomi Oy
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
Infosys Singapore Pte. Limited
Infosys Consulting GmbH
Infosys Automotive and Mobility GmbH
& Co. KG
Infosys McCamish Systems LLC
Infosys Green Forum
Infosys Consulting (Belgium) NV
Blue Acorn iCi Inc
GuideVision Deutschland GmbH
Infosys Poland Sp. Z.o.o
Infosys Middle East FZ LLC
Infosys Luxembourg S.a.r.l
Infosys (Czech Republic) Limited s.r.o.
Accrued expenses
Infosys BPM Limited
As at March 31,
2023
2022
Particulars
1
3
2
3
61
4
1
11
1
6
2
7
3
57
1
–
5
–
653
613
31
33
1
1
6
3
1
–
1
4
2
–
8
7
3
1
6
82
10
1
–
1
–
155
–
6
4
46
1
–
1
8
6
5
5
3
1
3
53
5
1
1
1
1
105
16
6
3
48
1
1
–
–
–
Loans and advances in the nature of
loans given to subsidiaries:
Infosys China
Infosys Shanghai
Infosys Singapore Pte. Ltd.
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
Particulars
Capital transactions :
Financing transactions
Equity
Infosys Business Solutions LLC
Infosys Consulting S.R.L
(Argentina)
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
Infosys Green Forum
Infosys Automotive and Mobility
GmbH & Co. KG
Infosys Shanghai
Infosys BPM Limited
Preference share
Infosys Singapore Pte. Ltd.
Debentures (net of repayment)
EdgeVerve
Loans given
Infosys Singapore Pte. Ltd.
Infosys Turkey Bilgi
Teknolojileri Limited Sirketi
Loans repaid
Infosys Shanghai
422
316
Infosys Singapore Pte. Ltd.
30
30
7
7
(1)
Interest at the rate of 7.45% per annum and term of loan is one year.
(In ₹ crore)
Maximum amount
outstanding during the
Year ended March 31,
2023
2022
–
–
397
43
21
76
–
–
(In ₹ crore)
Year ended March 31,
2023
2022
8
2
7
–
–
–
–
17
1,513
1,513
–
–
389
38
427
–
393
393
–
–
–
1
15
110
2
128
–
–
(536)
(536)
–
–
–
73
–
73
283
Infosys Integrated Annual Report 2022-23
Particulars
Year ended March 31,
Particulars
2023
2022
Year ended March 31,
2023
2022
Revenue transactions :
Purchase of services
Infosys China
Infosys Management Consulting
Pty Ltd
Infy Consulting Company Limited
Infosys Singapore Pte. Ltd.
Portland Group Pty Ltd
Infosys (Czech Republic) Limited
s.r.o.
Infosys BPM Limited
Infosys Sweden
Infosys Shanghai
Infosys Mexico
Infosys Public Services
Panaya Ltd
Infosys Poland Sp. Z.o.o
Infosys Consulting S.R.L.
(Romania)
Infosys Compaz Pte Ltd
Infosys Consulting Ltda
BASE life science A/S
Kaleidoscope Animations, Inc.
Brilliant Basics Limited
Infosys Chile SpA
Infosys Middle East FZ LLC
Fluido Oy
Fluido Sweden AB
Fluido Denmark A/S
Infosys McCamish Systems LLC
GuideVision, s.r.o.
GuideVision Polska SP. Z O.O.
HIPUS Co., Ltd
Simplus Australia Pty Ltd
Simplus Philippines, Inc.
Outbox systems Inc. dba Simplus
(US)
Infosys Fluido UK Ltd
WDW Communications, Inc.
iCiDIGITAL LLC
Blue Acorn LLC
Blue Acorn iCi Inc
Mediotype LLC
Infosys Automotive and Mobility
GmbH & Co. KG
GuideVision Deutschland GmbH
GuideVision Suomi Oy
GuideVision Magyarország Kft.
284
Infosys Austria GmbH
Infosys Limited Bulgaria EOOD
183
125
WongDoody, Inc
211
1,608
161
92
294
2,101
56
149
239
6
144
209
244
25
116
2
50
–
34
51
69
58
25
10
67
8
–
67
26
272
39
–
–
–
384
–
–
3
7
13
187
1,251
73
21
165
2,001
49
116
149
11
140
124
234
20
60
–
16
30
17
51
42
52
15
3
28
6
2
28
11
Infosys Luxembourg S.à.r.l
Infosys (Malaysia) SDN. BHD.
(formerly Global Enterprise
International (Malaysia) Sdn. Bhd.)
oddity space GmbH
oddity code d.o.o
oddity jungle GmbH
oddity Limited(Taipei)
Fluido Norway A/S
Infosys Consulting S.R.L.
(Argentina)
EdgeVerve
Purchase of shared services
including facilities and personnel
Brilliant Basics Limited
Infosys BPM Limited
WongDoody, Inc
Infosys Green Forum
Infosys China
Infosys (Czech Republic) Limited
s.r.o.
Infosys Mexico
Outbox systems Inc. dba Simplus
(US)
Infosys Consulting AG
Infosys Automotive and Mobility
GmbH & Co.KG
WDW Communications, Inc.
Interest income
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
Infosys Shanghai
177
Infosys Singapore Pte. Ltd.
EdgeVerve
Guarantee income
Infosys Singapore Pte. Ltd.
Dividend income
Brilliant Basics Holdings Ltd
EdgeVerve
Infosys BPM Limited
17
24
52
19
47
2
57
1
3
5
–
37
759
8
19
4
1
1
1
1
1
20
1
5
265
–
–
–
–
–
–
–
–
15
7,875
5,717
–
36
63
36
1
6
4
2
3
8
–
159
2
–
3
–
5
1
1
1
3
24
4
–
–
7
–
–
–
23
62
–
1
–
2
3
1
1
–
276
1,187
1,463
68
–
1,150
1,218
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Particulars
Year ended March 31,
Particulars
2023
2022
Year ended March 31,
2023
2022
Sale of services
Infosys China
Infosys Mexico
Infosys Austria GmbH
Infy Consulting Company Limited
Infosys BPO Americas LLC
Infosys BPM Limited
Fluido Oy
Infosys Luxembourg S.a.r.l
Infosys Middle East FZ LLC
Infosys McCamish Systems LLC
Infosys Sweden
Infosys Shanghai
EdgeVerve
Infosys Public Services
Outbox System,Inc. dba Simplus
Infosys Compaz Pte Ltd
Infosys Consulting Ltda
Simplus Australia Pty Ltd
Infosys Chile SpA
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
Blue Acorn LLC
Infosys (Czech Republic) Limited
s.r.o.
Infosys Automotive and Mobility
GmbH & Co. KG
Blue Acorn iCi Inc
Mediotype LLC
Portland Group Pty Ltd
Infosys Consulting S.R.L.(Romania)
ICI DIGITAL LLC
Infosys Singapore Pte. Ltd.
BASE life science A/S
Infosys Poland Sp. Z.o.o
Infosys Business Solutions LLC
Infosys South Africa Pty Ltd
Stater Nederland B.V.
Sale of shared services including
facilities and personnel
EdgeVerve
Panaya Ltd
Infy Consulting Company Limited
Infosys Public Services, Inc.
Infosys McCamish System LLC
Infosys China
24
22
–
53
–
113
–
140
26
458
70
4
822
778
1
141
3
4
8
–
–
–
Infosys Luxembourg S.a.r.l
Infosys Shanghai
Portland Group Pty Limited
Infosys Poland Sp. z.o.o.
WongDoody, Inc.
Fluido Oy
Outbox systems Inc. dba Simplus
(US)
Infosys BPO Americas LLC
Infosys Consulting AG
Infy Consulting B.V.
Infosys Consulting SAS
Infosys Consulting GmbH
HIPUS Co. Limited
Kaleidoscope Animations, Inc
Blue Acorn iCi Inc.
Infosys Automotive and Mobility
GmbH & Co.KG (2)
Infosys Business Solutions LLC
Infosys Green Forum
Infosys BPM Limited (1)
Any other transaction
Infosys Foundation
33
21
2
28
18
95
1
89
24
493
61
4
596
615
2
81
6
–
2
2
1
2
4
1
1
1
2
1
2
1
1
2
1
1
1
1
1
778
1
6
88
976
321
321
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
24
131
–
–
(1)
(2)
Includes sale of fixed assets of ₹2 crore
Includes amounts netted off against respective expenses
Refer to Note 2.5.1 for business transfer with wholly-owned
subsidiaries
The Company’s related party transactions during the years ended
March 31, 2023 and March 31, 2022 and outstanding balances
as at March 31, 2023 and March 31, 2022 are with its subsidiaries
with whom the Company generally enters into transactions,
which are at arms length and in the ordinary course of business.
70
201
3
–
1
1
–
–
1
2
1
5
1
1
3
1
1
5
–
–
–
–
45
47
2,796
2,436
28
7
12
3
25
7
100
3
–
–
–
–
285
Infosys Integrated Annual Report 2022-23
Transactions with key management personnel
The table below describes the compensation to key management personnel which comprise directors and executive officers :
Particulars
Salaries and other short term 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,
2023
111
16
127
2022
134
11
145
(1) Total employee stock compensation expense for the years ended March 31, 2023 and March 31, 2022 includes a charge of ₹49 crore and ₹65 crore, respectively,
towards key management personnel (Refer to Note 2.12). Stock compensation expense for the year ended March 31, 2023 includes reversal of expense on
account of resignation / retirement of key management personnel.
(2) Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole.
Others
The details of date and amount of fund invested in intermediary during the year ended March 31, 2023 are as follows :
Name of the intermediary
Registered address of the
intermediary
Relationship with the
intermediary
Date of investment
(In ₹ crore)
Amount of
investment * (in ₹
crore)
Infosys Singapore Pte. Ltd
9 Temasek Boulevard # 43-01 Suntec
Tower Two Singapore (038989)
Wholly-owned subsidiary
August 24, 2022
December 13, 2022
685
330
* During the year ended March 31, 2023, the Company has invested in redeemable preference share in Infosys Singapore Pte. Ltd
-
-
for funding the Base life science A/S acquisition.
to provide loan to Infosys Automotive and Mobility GmbH & Co. KG.
The details of date and amount of fund further invested by intermediary to ultimate beneficiaries during the year ended
March 31, 2023 are as follows :
Name of the ultimate
beneficiaries
Registered address of the ultimate
beneficiaries
Relationship with the
ultimate beneficiaries
Date of investment
BASE life science A/S
Infosys Automotive and
Mobility GmbH & Co. KG
Lyngbyvej 2, 2100 Copenhagen,
Denmark
Schelmenwasenstraße 39, 70567
Stuttgart.
Step down subsidiary
September 1, 2022
Wholly-owned subsidiary
December 15, 2022
(In ₹ crore)
Amount of
investment (in ₹
crore)
685
330
286
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
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 promoting education, promoting gender equality by empowering women, healthcare, environment sustainability,
art and culture, destitute care and rehabilitation, 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
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
As at March 31,
2023
437
392
45
9
(In ₹ crore)
2022
397
345
52
22
Pertains to ongoing projects
Pertains to ongoing projects
Promoting education, promoting gender equality by
empowering women, healthcare, environment sustainability,
art and culture, destitute care and rehabilitation, disaster
relief, COVID-19 relief and rural development projects
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)(2)
viii) Where a provision is made with respect to a liability incurred by entering
into a contractual obligation, the movements in the provision during the year
shall be shown separately
321
NA
12
NA
(1) Effective January 1, 2022, Infosys Foundation a trust jointly controlled by the KMP of Infosys Limited is a related party. For the year ending March 31, 2023, the
Company has made contributions to Infosys foundation to fulfil its corporate social responsibilities. Infosys Foundation supports programs in the areas of
education, rural development, healthcare, arts and culture, and destitute care.
(2) Represents contribution to Infosys Science foundation for the year ending March 31, 2022 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 Rules”), the Company was required
to transfer its CSR capital assets created prior to January 2021. Accordingly the Company incorporated a controlled subsidiary , 'Infosys
Green Forum' under Section 8 of the Companies Act, 2013 and 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.
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, 2023 and March 31, 2022 are as follows :
Particulars
Numerator
Denominator
As at March 31,
Variance (in %)
Current ratio
Current assets
Current liabilities
Debt – Equity ratio
Total Debt (represents
lease liabilities) (1)
Shareholder’s equity
Debt service coverage
ratio
Earnings available for
debt service (2)
Debt service (3)
2023
1.9
0.1
37.7
2022
2.1
0.1
38.5
(9.6)
0.8
(1.9)
287
Infosys Integrated Annual Report 2022-23 Particulars
Numerator
Denominator
As at March 31,
Variance (in %)
2023
2022
Return on Equity
(ROE)
Trade receivables
turnover ratio
Trade payables
turnover ratio
Net capital turnover
ratio
Net profits after taxes Average shareholder’s
Revenue
equity
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
Income generated
from investments
Time weighted
average investments
Time weighted
average investments
34.0
6.2
11.7
5.0
18.8
43.8
5.7
3.6
30.2
5.9
11.3
3.8
20.4
38.8
8.7
5.9
(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.
2.28 Function-wise classification of Statement of Profit and Loss
Note
2.18
2.19
2.17
2.17
Year ended March 31,
2023
1,24,014
85,762
38,252
5,018
5,293
10,311
27,941
157
3,859
31,643
8,167
208
23,268
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 :
Current tax
Deferred tax
Profit for the year
288
3.8
6.2
3.8
33.0 *
(1.7)
4.9
(3.0)
(2.4)
(In ₹ crore)
2022
1,03,940
69,629
34,311
4,125
4,787
8,912
25,399
128
3,224
28,495
6,960
300
21,235
Infosys Integrated Annual Report 2022-23Standalone Financial Statements
Particulars
Note
Year ended March 31,
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
2.5 and 2.17
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
2.11 and 2.17
Fair value changes on investments, net
2.5
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
2023
2022
(19)
(6)
(7)
(236)
(268)
23,000
(98)
97
(8)
(39)
(48)
21,187
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Bengaluru
April 13, 2023
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
289
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2023
Index
A Independent Auditor’s Report .................................................................................................................................................................................................291
B Consolidated Balance Sheet .......................................................................................................................................................................................................299
C Consolidated Statement of Profit and Loss ..........................................................................................................................................................................301
D Consolidated Statement of Changes in Equity ...................................................................................................................................................................303
E Consolidated Statement of Cash Flows ..................................................................................................................................................................................308
F Overview and notes to the Consolidated Financial Statements ...................................................................................................................................310
1. Overview
1.1 Company overview ................................................................................................................................................................................................................310
1.2 Basis of preparation of financial statements ................................................................................................................................................................310
1.3 Basis of consolidation ...........................................................................................................................................................................................................310
1.4 Use of estimates and judgments ......................................................................................................................................................................................310
1.5 Critical accounting estimates and judgments .............................................................................................................................................................310
1.6 Recent accounting pronouncements .............................................................................................................................................................................311
2. Notes to the Consolidated financial statements
2.1 Business combinations .........................................................................................................................................................................................................312
2.2 Property, plant and equipment ........................................................................................................................................................................................313
2.3 Capital work-in-progress .....................................................................................................................................................................................................315
2.4 Goodwill and other intangible assets .............................................................................................................................................................................316
2.5 Investments ..............................................................................................................................................................................................................................318
2.6 Loans ...........................................................................................................................................................................................................................................321
2.7 Other financial assets ............................................................................................................................................................................................................321
2.8 Trade receivables ....................................................................................................................................................................................................................322
2.9 Cash and cash equivalents ..................................................................................................................................................................................................323
2.10 Other assets .............................................................................................................................................................................................................................323
2.11 Financial instruments ...........................................................................................................................................................................................................323
2.12 Equity .........................................................................................................................................................................................................................................332
2.13 Other financial liabilities .....................................................................................................................................................................................................339
2.14 Trade payables ........................................................................................................................................................................................................................339
2.15 Other liabilities .......................................................................................................................................................................................................................340
2.16 Provisions .................................................................................................................................................................................................................................340
2.17 Income taxes ...........................................................................................................................................................................................................................341
2.18 Revenue from operations ...................................................................................................................................................................................................344
2.19 Other income, net .................................................................................................................................................................................................................347
2.20 Expenses ..................................................................................................................................................................................................................................348
2.21 Leases .......................................................................................................................................................................................................................................349
2.22 Employee benefits ...............................................................................................................................................................................................................351
2.23 Reconciliation of basic and diluted shares used in computing earnings per equity share ......................................................................356
2.24 Contingent liabilities and commitments .....................................................................................................................................................................356
2.25 Related party transactions ................................................................................................................................................................................................357
2.26 Segment reporting...............................................................................................................................................................................................................365
2.27 Function-wise classification of Consolidated Statement of Profit and Loss ...................................................................................................366
290
Infosys Integrated Annual Report 2022-23 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, 2023,
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, 2023 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.
291
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
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.
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Infosys Integrated Annual Report 2022-23 Sr. No.
Key Audit Matter
2
Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed through
an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method when the
pattern of benefits from services rendered to the customer and the Group’s costs to fulfil the contract is not even through the
period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-
of-completion method.
Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to date
as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure
progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts
or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on
the latest available information. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in
which such losses become probable based on the estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage
of completion method as a key audit matter as the estimation of total efforts or costs involves significant judgement
and is assessed throughout the period of the contract to reflect any changes based on the latest available information.
This estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs incurred
to-date and estimates of efforts or costs required to complete the remaining contract performance obligations over the
term of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort to
evaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.5 and 2.18 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 the using percentage-of-completion method and
performed the following:
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Group’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.
293
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
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 and Sustainability 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.
Responsibilities of Management and Those Charged with Governance 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 with reference to
consolidated financial statements 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.
294
Infosys Integrated Annual Report 2022-23 •
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)
d)
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.
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, 2023 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, 2023 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 with reference to consolidated financial statements 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 with reference to consolidated financial
statements of those companies.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section
197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by
the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us:
i)
The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position
of the Group. (Refer Note 2.24) to the consolidated financial statements.
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Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
ii)
iii)
iv)
The Group has made provision as required under applicable law or accounting standards for material foreseeable
losses. (Refer Note 2.16 to the consolidated financial statements). The Group did not have any long-term
derivative contracts.
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.
(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, outside the Group, 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.
vi)
Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit log) facility is applicable with effect from April 1, 2023 to the
Company and its subsidiaries, which are companies incorporated in India, and accordingly, reporting under Rule 11(g)
of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 23039826BGXRYQ2725
Place: Bengaluru
Date: April 13, 2023
296
Infosys Integrated Annual Report 2022-23 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 with reference to Consolidated Financial Statements 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, 2023,
we have audited the internal financial controls with reference to Consolidated Financial Statements 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 with reference to Consolidated Financial Statements 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 Act, to the
extent applicable to an audit of internal financial controls with reference to Consolidated Financial Statements. 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 with reference to Consolidated Financial Statements 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 with reference
to Consolidated Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to
Consolidated Financial Statements included obtaining an understanding of internal financial controls with reference to Consolidated
Financial Statements, 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 with reference to Consolidated Financial Statements of the Company and its subsidiary companies, which are
companies incorporated in India.
297
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
Meaning of Internal Financial Controls with reference to Consolidated Financial Statements
A company's internal financial control with reference to Consolidated Financial Statements 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 with reference to Consolidated Financial
Statements 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 with reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to Consolidated Financial Statements, 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 with reference to Consolidated Financial Statements to
future periods are subject to the risk that the internal financial control with reference to Consolidated Financial Statements 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 with
reference to Consolidated Financial Statements and such internal financial controls with reference to Consolidated Financial Statements
were operating effectively as at March 31, 2023, based on the criteria for internal financial control with reference to Consolidated
Financial Statements 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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 23039826BGXRYQ2725
Place: Bangalore
Date: April 13, 2023
298
Infosys Integrated Annual Report 2022-23
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
(In ₹ crore)
Note
As at March 31,
2023
2022
2.2
2.21
2.3
2.4.1 and 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
13,346
13,075
6,882
288
7,248
1,749
4,823
416
6,195
1,707
12,569
13,651
39
2,798
1,245
6,453
2,318
34
1,460
1,212
6,098
2,029
54,935
50,700
6,909
25,424
12,173
289
11,604
6
14,476
70,881
6,673
22,698
17,472
248
8,727
54
11,313
67,185
1,25,816
1,17,885
299
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
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,
2023
2022
2.12
2.21
2.13
2.17
2.15
2.21
2.14
2.13
2.15
2.16
2.17
2,069
73,338
75,407
388
75,795
7,057
2,058
1,220
500
10,835
1,242
3,865
18,558
10,830
1,307
3,384
2,098
73,252
75,350
386
75,736
4,602
2,337
1,156
451
8,546
872
4,134
15,837
9,178
975
2,607
39,186
1,25,816
33,603
1,17,885
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
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Bengaluru
April 13, 2023
Nilanjan Roy
Chief Financial Officer
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
300
Infosys Integrated Annual Report 2022-23
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 and 2.21
2.20
2.17
2.17
2023
2022
1,46,767
1,21,641
2,701
2,295
1,49,468
1,23,936
78,359
14,062
1,525
10,902
713
1,684
4,225
284
4,392
1,16,146
33,322
9,287
(73)
63,986
12,606
827
6,811
611
1,885
3,476
200
3,424
93,826
30,110
7,811
153
24,108
22,146
301
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
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,
2023
2022
2.22
2.5
2.11
2.5
8
(7)
1
(7)
776
(256)
513
514
(85)
96
11
(8)
228
(49)
171
182
24,622
22,328
24,095
13
24,108
24,598
24
24,622
22,110
36
22,146
22,293
35
22,328
57.63
57.54
52.52
52.41
Weighted average equity shares used in computing earnings per equity share
Basic (in shares)
Diluted (in shares)
2.23
2.23
418,08,97,857
420,95,46,724
418,77,31,070
421,85,25,134
The accompanying notes form an integral part of the Consolidated financial statements.
As per our report of even date attached
for and on behalf of the Board of Directors of Infosys Limited
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No.:
117366W/W-100018
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Bengaluru
April 13, 2023
Nilanjan Roy
Chief Financial Officer
302
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bobby Parikh
Director
A.G.S. Manikantha
Company Secretary
Infosys Integrated Annual Report 2022-23
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, 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
1,331
10
(158)
76,351
431 76,782
Profit for the period
–
–
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, net
* (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)
3
0
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22,110
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 22,110
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
96
–
–
–
–
–
–
(8)
229
–
–
–
–
22,110
36 22,146
(85)
(85)
–
(85)
–
–
–
96
–
96
(8)
–
(8)
229
(1)
228
(49)
(49)
–
(49)
96
229
(8)
(134)
22,293
35 22,328
–
–
–
–
21
–
21
2
–
–
19
–
–
Infosys Integrated Annual Report 2022-23
C
o
n
s
o
l
i
d
a
t
e
d
F
n
a
n
c
i
a
i
l
S
t
a
t
e
m
e
n
t
s
3
0
4
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 options not
exercised
Buyback of equity
shares (Refer to Note
2.12) **
Transaction costs
relating to buyback *
Amount transferred
to capital
redemption reserve
upon buyback
Transfer to legal
reserve
Transferred on
account of exercise
of stock options
(Refer to Note 2.12)
Income tax benefit
arising on exercise
of stock options
(Refer to Note 2.12)
Changes in the
controlling stake of
the subsidiary
Dividends (1)
Dividends paid to
non-controlling
interest of
subsidiary
Transferred to
Special Economic
Zone Re-
investment Reserve
Transferred from
Special Economic
Zone Re-
investment Reserve
on utilization
Balance as at
March 31, 2022
–
–
(28)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
28
–
–
–
–
–
–
–
–
–
–
–
–
–
1
393
(1)
–
–
–
–
(218)
60
–
–
–
(640)
(8,822)
(1,603)
–
(24)
–
(28)
–
–
–
218
3
(10)
–
–
–
1
– (12,655)
–
–
– (3,054)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,054
–
1,100
–
–
(1,100)
2,098
54
139
200
61,313
1,061
606
8,339
–
–
–
–
–
10
–
–
–
–
–
–
–
16
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
254
1,560
–
–
–
–
–
–
–
–
–
–
–
–
–
2
–
–
–
–
–
–
–
–
–
–
–
–
–
393
–
–
–
393
–
(11,093)
– (11,093)
(24)
–
(24)
–
–
–
63
–
–
–
–
–
–
–
63
1
(12,655)
(1)
–
– (12,655)
–
–
–
(79)
(79)
–
–
–
–
(292)
75,350
386
75,736
Infosys Integrated Annual Report 2022-23
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, 2022
Impact on adoption
of amendment to
Ind AS 37#
Changes in equity
for the year ended
March 31, 2023
2,098
54
139
200
61,313
1,061
606
8,339
16
254
1,560
–
2,098
–
54
–
139
–
200
(19)
61,294
–
1,061
–
606
–
8,339
–
16
–
254
–
1,560
Profit for the period
–
–
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,
net * (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)
3
0
5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 24,095
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 24,095
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
–
–
34
–
–
2
–
2
–
–
(292)
75,350
386
75,736
–
(292)
(19)
75,331
–
386
(19)
75,717
–
24,095
13
24,108
8
8
–
8
–
–
–
–
(7)
–
–
–
–
–
–
(7)
765
–
–
–
–
–
–
(7)
–
(7)
(7)
–
(7)
765
11
776
(256)
(256)
–
(256)
(7)
765
(7)
(248)
24,598
24
24,622
–
–
–
–
35
–
35
Infosys Integrated Annual Report 2022-23
C
o
n
s
o
l
i
d
a
t
e
d
F
n
a
n
c
i
a
i
l
S
t
a
t
e
m
e
n
t
s
3
0
6
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)
Transferred to legal
reserve
Transferred on
account of exercise
of stock options
Transferred on
account of options
not exercised
Buyback of equity
shares (Refer to Note
2.12) **
Transaction costs
relating to buyback *
Amount transferred
to capital
redemption reserve
upon buyback
Income tax benefit
arising on exercise
of stock options
Dividends (1)
Dividends paid to
non-controlling
interest of
subsidiary
Transferred to
Special Economic
Zone Re-
investment Reserve
Transferred from
Special Economic
Zone Re-
investment Reserve
on utilization
Balance as at
March 31, 2023
–
–
–
–
(30)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30
–
–
–
–
–
–
–
291
–
–
(3)
–
–
(340)
(11,096)
(19)
(5)
–
–
–
2
–
–
(21)
(9)
–
–
–
– (13,632)
–
–
–
(3,139)
–
–
–
–
514
–
(291)
(2)
–
–
–
51
–
–
–
–
–
–
–
–
–
–
–
–
–
3,139
–
1,464
–
–
(1,464)
2,069
54
169
166
58,957
1,054
878
10,014
–
3
–
–
–
–
–
–
–
–
–
–
19
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
247
2,325
–
–
–
–
–
–
–
–
–
–
–
–
(5)
–
–
–
–
–
–
–
–
–
–
–
–
514
–
–
–
–
–
–
–
514
–
–
–
(11,466)
–
(11,466)
(24)
–
(24)
–
51
–
–
–
51
(13,632)
– (13,632)
–
–
–
(22)
(22)
–
–
–
–
(540)
75,407
388
75,795
Infosys Integrated Annual Report 2022-23
* Net of tax
**
#
Including tax on buyback of ₹2,166 crore and ₹1,893 crore for the years ended March 31, 2023 and March 31, 2022, respectively.
Impact on account of adoption of amendment to Ind AS 37, Provisions, Contingent Liabilities and Contingents Assets
(1) Net of treasury shares
(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(i)(ii) of 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, few subsidiaries of Infosys Consulting 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, 2023
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent
Director
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bobby Parikh
Director
A.G.S. Manikantha
Company Secretary
3
0
7
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
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 year
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense
Depreciation and amortization
Interest and dividend income
Finance cost
Impairment loss recognized / (reversed) under expected credit loss model
Exchange differences on translation of assets and liabilities, net
Stock compensation expense
Other adjustments
Changes in assets and liabilities
Trade receivables and unbilled revenue
Loans, other financial assets and other assets
Trade payables
Other financial liabilities, other liabilities and provisions
Cash generated from operations
Income taxes paid
Net cash generated by operating activities
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles
Deposits placed with corporation
Redemption of deposits placed with corporation
Interest and dividend received
Payment towards acquisition of business, net of cash acquired
Payment of contingent consideration pertaining to acquisition of business
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 fund units
Target maturity fund
Certificates of deposit
308
Note
Year ended March 31,
(In ₹ crore)
2023
2022
24,108
22,146
2.17
2.2, 2.4.2 and 2.21
2.19
2.12
9,214
4,225
(1,817)
284
283
161
519
628
(7,076)
(3,108)
(279)
4,119
31,261
(8,794)
22,467
(2,579)
(996)
762
1,525
(910)
(60)
(483)
483
71
–
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)
(27)
–
(70,631)
(54,064)
(400)
(10,348)
–
(4,184)
Infosys Integrated Annual Report 2022-23
Consolidated Statement of Cash Flows (contd.)
Particulars
Note
Year ended March 31,
Commercial paper
Non-convertible debentures
Government securities
Others
Proceeds on sale of investments
Tax-free bonds and government bonds
Liquid mutual funds units
Certificates of deposit
Commercial paper
Non-convertible debentures
Government securities
Equity and preference securities
Others
Net cash (used in) / generated 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
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Supplementary information
Restricted cash balance
2023
(3,003)
(249)
(1,569)
(20)
221
71,851
10,404
2,298
470
1,882
99
–
2022
–
(1,609)
(4,254)
(24)
20
53,669
787
–
2,201
1,457
–
9
(1,209)
(6,416)
(1,231)
(13,631)
(915)
(12,652)
(22)
35
–
132
(479)
(11,499)
(26,695)
(5,437)
138
17,472
12,173
(79)
21
(2)
236
(126)
(11,125)
(24,642)
(7,173)
(69)
24,714
17,472
362
471
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, 2023
D. Sundaram
Lead Independent
Director
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
A.G.S. Manikantha
Company Secretary
309
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
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 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 Group's Consolidated financial statements are approved for
issue by the Company's Board of Directors on April 13, 2023.
1.2 Basis of preparation of financial statements
These Consolidated financial statements are prepared in
accordance with the Indian Accounting Standard (Ind AS), under
the historical cost convention on accrual basis, except for certain
financial instruments which are measured at fair values, the
provisions of the Companies Act, 2013 ("the Act") and guidelines
issued by the Securities and Exchange Board of India (SEBI).
The Ind AS are prescribed under Section 133 of the Act read with
Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereafter.
Accounting policies have been consistently applied, except
where a newly-issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded
to the nearest digits, the figures reported for the previous
quarters might not always add up to the year-end figures
reported in this statement.
1.3 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. 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.
310
The financial statements of the Group companies are
consolidated on a line-by-line basis and intra-group balances
and transactions including unrealized gain / loss from such
transactions are eliminated upon consolidation. These financial
statements are prepared by applying uniform accounting policies
in use at the Group. Non-controlling interests which represent
part of the net profit or loss and net assets of subsidiaries
that are not, directly or indirectly, owned or controlled by the
Company, are excluded.
1.4 Use of estimates and judgments
The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and
the reported amounts of assets and liabilities, the disclosures
of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses
during the period. The application of accounting policies that
require critical accounting estimates, which involve 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 and judgments 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.
1.5 Critical accounting estimates and judgments
a. Revenue recognition
The Group’s contracts with customers include promises to
transfer multiple products and services to a customer. Revenues
from customer contracts are considered for recognition and
measurement when the contract has been approved, in
writing, by the parties to the contract, the parties to contract
are committed to perform their respective obligations under
the contract, and the contract is legally enforceable. The Group
assesses the services promised in a 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 method to
Infosys Integrated Annual Report 2022-23 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.
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.
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 Group's two major tax jurisdictions are India and the United
States, 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 Note 2.17).
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 fair value of identifiable assets, liabilities
and contingent liabilities of the acquiree. These valuations are
conducted by external valuation experts. Estimates are required
to be made in determining the value of contingent consideration,
value of option arrangements and intangible assets.
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 (CGUs) 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 31, 2023, the MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below :
Ind AS 1, Presentation of Financial Statements – The amendment
requires the entities to disclose their material accounting policies
rather than their significant accounting policies. The effective
date for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Group has evaluated the
amendment and the impact of the amendment is insignificant in
the Group’s financial statements.
Ind AS 8, Accounting Policies, Changes in Accounting Estimates
and Errors – The amendment has introduced a definition of
‘accounting estimates’ and included amendments to Ind AS 8
to help entities distinguish changes in accounting policies from
311
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
changes in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or after
April 1, 2023. The Group has evaluated the amendment and there
is no impact on its consolidated financial statements.
Ind AS 12, Income Taxes – This amendment has narrowed the
scope of the initial recognition exemption so that it does not
apply to transactions that give rise to equal and offsetting
temporary differences. The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2023.
The Group has evaluated the amendment and there is no impact
on its consolidated financial statements.
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
acquired and liabilities assumed 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.
Acquisition
During the year ended March 31, 2023, the Group, completed two
business combinations to complement its digital offerings by
acquiring 100% voting interests in:
(i) oddity GmbH, oddity group services GmbH, oddity space
GmbH, oddity jungle GmbH, oddity code GmbH and oddity
waves GmbH (collectively known as oddity), a Germany-
based digital marketing, experience, and commerce
agencies on April 20, 2022.
(ii) BASE life science A/S, a consulting and technology firm in the
life science industry in Europe on September 1, 2022.
These acquisitions are expected to strengthen the Group’s
creative, branding and experience design capabilities and
augment the Group’s life sciences expertise, scales its digital
transformation capabilities with cloud-based industry solutions
and expand its presence across Europe.
The purchase price allocated to assets acquired and liabilities
assumed based upon determination of fair values at the dates of
acquisition is as follows :
Particulars
Acquiree’s
carrying
amount
Fair value
adjustments
(In ₹ crore)
Purchase
price
allocated
Net assets(1)
103
–
103
Intangible assets –
Customer contracts
and relationships
Vendor relationships
Brand
Deferred tax
liabilities on
intangible assets
Total
Goodwill
Total purchase price
–
–
–
–
103
274
30
24
(80)
248
274
30
24
(80)
351
630
981
(1)
Includes cash and cash equivalents acquired of ₹26 crore.
The excess of the purchase consideration paid over the fair value
of assets acquired has been attributed to goodwill. The primary
items that generated this goodwill are the value of the acquired
assembled workforce and estimated synergies, neither of which
qualify as an intangible asset.
Goodwill is not tax-deductible. Goodwill pertaining to these
business combinations is allocated to operating segments as
more fully described in Note 2.4.1.
312
Infosys Integrated Annual Report 2022-23
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. The cost and related accumulated depreciation
are eliminated from the financial statements upon sale or
retirement of the asset.
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.
The purchase consideration of ₹981 crore includes cash of ₹936
crore and contingent consideration with an estimated fair value
of ₹45 crore as on the date of acquisition.
At the acquisition date, the key inputs used in determination of
the fair value of contingent consideration are the probabilities
assigned towards achievement of financial targets and
discount rate of 12.5%. The undiscounted value of contingent
consideration as of March 31, 2023 was ₹58 crore.
Additionally, these acquisitions have shareholder and employee
retention bonus payable to the employees of the acquiree
over three years, subject to their continuous employment with
the Group along with achievement of financial targets for the
respective years. Performance and 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 ₹111 crore as of
acquisition date and as of March 31, 2023, the amounts are
substantially collected.
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. The transaction costs of ₹7 crore related
to the acquisition have been included under administrative
expenses in the Consolidated Statement of Profit and Loss for the
year ended March 31, 2023.
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 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 25 years
313
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2023 are 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, 2022
Additions – Business
Combination (Refer
to Note 2.1)
Additions
Deletions *
Translation
difference
Gross carrying
value as at March
31, 2023
Accumulated
depreciation as at
April 1, 2022
Depreciation
Accumulated
depreciation on
deletions *
Translation
difference
Accumulated
depreciation as at
March 31, 2023
Carrying value as
at April 1, 2022
Carrying value as
at March 31, 2023
1,431
11,224
3,210
1,427
8,527
2,278
1,234
44
29,375
–
2
(2)
–
–
337
–
1
–
273
(182)
5
122
(76)
6
1,510
(1,563)
1
364
(348)
2
220
(25)
–
2
14
2,830
(1)
(2,197)
1
4
39
8
14
–
67
1,431
11,562
3,302
1,482
8,519
2,303
1,445
45
30,089
–
–
–
–
–
(4,100)
(2,344)
(1,150)
(6,034)
(1,779)
(434)
(273)
(121)
(1,322)
(236)
(856)
(187)
(37)
(16,300)
(4)
(2,577)
–
(1)
181
(1)
76
(3)
1,556
347
(26)
(7)
21
(10)
1
–
2,182
(48)
(4,535)
(2,437)
(1,198)
(5,826)
(1,675)
(1,032)
(40)
(16,743)
1,431
1,431
7,124
7,027
866
865
277
284
2,493
2,693
499
628
378
413
7
5
13,075
13,346
* During the year ended March 31, 2023, certain assets which were not in use having gross book value of ₹1,918 crore (net book value: Nil) were retired.
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2022 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, 2021
Additions
Deletions *
Translation
difference
Gross carrying
value as at
March 31, 2022
314
1,399
10,565
32
–
–
599
(1)
61
3,296
256
(349)
1,371
68
(15)
7,639
1,542
(672)
2,149
140
(17)
7
3
18
6
1,188
79
(46)
13
44
27,651
–
–
–
2,716
(1,100)
108
1,431
11,224
3,210
1,427
8,527
2,278
1,234
44
29,375
Infosys Integrated Annual Report 2022-23 Particulars
Land –
Freehold
Buildings (1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and
fixtures
Leasehold
improvements
Vehicles
Total
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
–
–
–
–
–
(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
277
2,003
2,493
569
499
488
378
12
12,560
7
13,075
* During the year ended March 31, 2022, certain assets which were not in use having gross book value of ₹316 crore (net book value: Nil) respectively, were
retired.
(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.
Repairs and maintenance costs are recognized in the Consolidated Statement of Profit and Loss when incurred.
2.3 Capital work-in-progress
Particulars
Capital work-in-progress
Total capital work-in-progress
As at March 31,
2023
288
288
The capital work-in-progress ageing schedule for the years ended March 31, 2023 and March 31, 2022 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
235
272
235
272
21
48
21
48
12
51
12
51
More than 3
years
20
45
20
45
(In ₹ crore)
2022
416
416
(In ₹ crore)
Total
288
416
288
416
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, 2023 and March 31, 2022 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
KL-SP-SDB1
114
–
–
27
–
–
–
–
(In ₹ crore)
Total
114
27
315
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Particulars
BN-SP-MET
NG-SZ-SDB1
BN-SP-RETRO
BH-SZ-MLP
Total capital work-in-progress(1)
Less than 1 year
1-2 years
2-3 years
To be completed in
More than 3
years
20
–
–
89
–
30
–
116
134
235
–
–
–
–
–
–
–
–
–
27
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
20
–
–
89
–
30
–
116
134
262
(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 represents 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.
316
A summary of changes in the carrying amount of
goodwill is as follows :
Particulars
As at March 31,
(In ₹ crore)
Carrying value at the beginning
Goodwill on acquisitions
(Refer to Note 2.1)
Translation differences
2023
6,195
630
423
2022
6,079
–
116
Carrying value at the end
7,248
6,195
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, 2023 and March 31, 2022 is as follows :
Segment
As at March 31,
(In ₹ crore)
Financial services
Retail
Communication
Energy, Utilities, Resources and
Services
Manufacturing
Life Sciences
Operating segments without
significant goodwill
Total
2023
1,465
929
668
1,152
573
943
2022
1,366
817
619
1.070
499
407
5,730
4,778
559
6,289
531
5,309
Infosys Integrated Annual Report 2022-23
The goodwill pertaining to Panaya amounting to ₹959 crore and
₹886 crore as at March 31, 2023 and March 31, 2022, respectively
is tested for impairment at the entity level.
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
2023
8-10
19-21
13
2022
8-10
19-21
12
The above discount rate is based on the Weighted Average Cost
of Capital (WACC) of the Company. As at March 31, 2023, 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 labor, and overhead costs that are
directly attributable to prepare 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, 2023 are as follows :
Particulars
Customer-
related
Software-
related
Intellectual
property
rights-
related
Brand or
Trademark-
Related
Gross carrying value as at April 1, 2022
Additions
Acquisition through business combination (Refer to Note 2.1)
Deletions
Translation difference
Gross carrying value as at March 31, 2023
Accumulated amortization as at April 1, 2022
Amortization expense
Deletions
Translation differences
Accumulated amortization as at March 31, 2023
2,080
-
274
–
153
2,507
(1,279)
(236)
–
(85)
(1,600)
915
62
–
(4)
58
1,031
(569)
(84)
3
(38)
(688)
1
–
–
–
–
1
(1)
–
–
–
(1)
299
–
24
–
23
346
(141)
(45)
–
(9)
(195)
(In ₹ crore)
Others *
Total
686
3,981
–
30
–
58
774
(284)
(119)
–
(23)
(426)
62
328
(4)
292
4,659
(2,274)
(484)
3
(155)
(2,910)
317
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
Particulars
Carrying value as at April 1, 2022
Carrying value as at March 31, 2023
Estimated useful life (in years)
Estimated remaining useful life (in years)
Customer-
related
Software-
related
Intellectual
property
rights-
related
Brand or
Trademark-
Related
Others *
Total
801
907
1-15
1-11
346
343
3-10
1-6
–
–
–
–
158
151
3-10
1-7
402
348
3-7
1-5
1,707
1,749
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2022 were 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)
* Majorly includes intangibles related to vendor relationships
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)
(141)
194
158
3-10
1-8
–
–
20
686
(163)
(118)
–
(3)
85
–
48
3,981
(1,776)
(464)
–
(34)
(284)
(2,274)
2,072
1,707
503
402
3-7
1-6
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, 2023 and
March 31, 2022 was ₹1,042 crore and ₹922 crore, respectively.
2.5 Investments
Particulars
Non-current
Unquoted
Investments carried at fair value through other comprehensive income
Preference securities
Equity instruments
Investments carried at fair value through profit or loss
Preference securities
Compulsorily convertible debentures
318
(In ₹ crore)
As at March 31,
2023
2022
193
3
196
–
–
192
2
194
24
7
Infosys Integrated Annual Report 2022-23
Particulars
As at March 31,
Target maturity fund units
Others (1)
Quoted
Investments carried at amortized cost
Government bonds
Tax-free bonds
Investments carried at fair value through other comprehensive income
Non-convertible debentures
Government securities
Total non-current investments
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units
Investments carried at fair value through other comprehensive income
Commercial paper
Certificates of deposit
Quoted
Investments carried at amortized cost
Government bonds
Tax-free bonds
Investments carried at fair value through other comprehensive income
Non-convertible debentures
Government securities
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
(1) Uncalled capital commitments outstanding as at March 31, 2023 and March 31, 2022 was ₹92 crore and ₹28 crore, respectively.
Refer to Note 2.11 for accounting policies on Financial Instruments.
2023
402
169
571
28
1,742
1,770
2,713
7,319
10,032
12,569
975
975
742
3,574
4,316
–
150
150
1,155
313
1,468
6,909
19,478
13,420
1,637
12,042
6,058
1,920
16,012
1,546
2022
–
152
183
–
1,901
1,901
3,718
7,655
11,373
13,651
2,012
2,012
–
3,429
3,429
21
200
221
495
516
1,011
6,673
20,324
14,506
1,247
13,612
5,818
2,122
16,007
2,195
319
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
The details of amounts recorded in other comprehensive income are as follows :
Particulars
Year ended March 31, 2023
Year ended March 31, 2022
(In ₹ crore)
Net gain / (loss) on
Non-convertible debentures
Certificates of deposit
Government securities
Equity and preference securities
Method of fair valuation
Gross
Tax
Net
Gross
(100)
(1)
(162)
(8)
(1)
–
8
1
(101)
(1)
(154)
(7)
(13)
2
(60)
119
Tax
1
(1)
22
(23)
Net
(12)
1
(38)
96
Class of investment
Method
Liquid mutual fund units
Target maturity fund units
Quoted price
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
Commercial papers
Certificates of deposit
Quoted price and market observable inputs
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 or loss
Discounted cash flows method, Market multiples
method, Option pricing model
Unquoted compulsorily convertible debentures –
carried at fair value through profit or 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,
2023
975
402
2,148
3,868
7,632
742
3,574
196
–
–
169
2022
2,012
–
2,447
4,213
8,171
–
3,429
194
24
7
152
19,706
20,649
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, 2023 and March 31, 2022 are as follows :
Particulars
Preference securities
Airviz, Inc.
2,89,695 (2,82,279) Series A Preferred Stock, fully paid-up, par value USD 0.001 each
Whoop, Inc.
1,10,59,340 (1,10,59,340) 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
Tidalscale, Inc.
36,74,269 (36,74,269) Series B Preferred Stock
320
(In ₹ crore, except otherwise stated)
As at March 31,
2023
2022
–
53
26
–
–
150
22
23
Infosys Integrated Annual Report 2022-23
Particulars
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
5,402 (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid-up
1,787 (Nil) Series B 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 Limited (formerly Ideaforge Technology Private Limited)
22,600 (100) equity shares at ₹10, fully paid-up
Total investment in equity instruments
Compulsorily convertible debentures
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
Nil (3,886) compulsorily convertible debentures, fully paid-up, par value ₹19,300 each
Total investment in compulsorily convertible debentures
Others
Stellaris Venture Partners India
The House Fund II, L.P.
The House Fund III, 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: Allowance 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
(In ₹ crore)
As at March 31,
Particulars
2023
2022
Non-current
Security deposits (1)
Rental deposits (1)
Unbilled revenues (1)#
Net investment in sublease of
right-of-use asset (1)
Restricted deposits (1) *
Others (1)
Total non-current other financial
assets
Current
Security deposits (1)
Rental deposits (1)
Restricted deposits (1) *
Unbilled revenues (1)#
Interest accrued but not due (1)
Foreign currency forward and
options contracts (2) (3)
39
39
2
(2)
–
39
289
289
328
34
34
–
–
–
34
248
248
282
As at March 31,
2023
114
2022
20
193
215
–
2
1
3
–
–
82
84
3
169
365
–
2
–
2
7
7
76
77
–
153
377
(In ₹ crore)
As at March 31,
2023
2022
47
240
1,185
305
96
925
47
186
695
322
33
177
2,798
1,460
10
32
2,348
8,317
488
101
7
58
2,177
5,659
362
143
321
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Particulars
Net investment in sublease of
right of-use-asset (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,
2023
2022
53
255
11,604
14,402
50
271
8,727
10,187
14,301
10,044
32
69
20
123
* Restricted deposits represent deposits with financial institutions to settle
employee related obligations as and when they arise during the normal
course of business.
# Classified as financial asset as right to consideration is unconditional and
is due only after a passage of time.
2.8 Trade receivables
Particulars
Current
Trade receivable considered
good – Unsecured
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,
2023
2022
25,965
23,252
541
554
25,424
22,698
142
142
–
113
113
–
Total trade receivables
25,424
22,698
The trade receivables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :
Particulars
Not due
Outstanding for following periods from due date of payment
Total
(In ₹ crore)
Less than 6
months
6 months to
1 year
1-2 years
2-3 years
More than
3 years
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
18,397
17,394
7,501
5,561
14
–
–
–
–
–
7
1
–
–
–
–
18,411
17,394
7,508
5,562
–
–
–
–
–
–
–
–
58
230
2
3
–
–
–
–
60
233
–
–
–
–
3
11
4
62
–
–
–
4
7
77
–
–
–
–
4
35
69
34
–
–
3
–
76
69
–
–
–
–
2
21
38
4
–
–
5
5
45
30
–
–
–
–
25,965
23,252
134
104
–
–
8
9
26,107
23,365
683
667
25,424
22,698
322
Infosys Integrated Annual Report 2022-23
2.9 Cash and cash equivalents
(In ₹ crore)
Particulars
Particulars
Balances with banks
As at March 31,
2023
2022
In current and deposit accounts
10,026
13,942
Cash on hand
Others
Deposits with financial
institutions
Total cash and cash equivalents
Balances with banks in unpaid
dividend accounts
Deposit with more than 12 months
maturity
Balances with banks held as margin
money deposits against guarantees
–
–
2,147
12,173
3,530
17,472
37
36
833
1,616
–
1
Cash and cash equivalents as at March 31, 2023 and
March 31, 2022 include restricted cash and bank balances of
₹362 crore and ₹471 crore, respectively. The restrictions are
primarily on account of bank balances held by irrevocable trusts
controlled by the Company.
The deposits maintained by the Group with banks and
financial institutions comprise time deposits, which can be
withdrawn by the Group at any point without prior notice or
penalty on the principal.
2.10 Other assets
Particulars
Non-current
Capital advances
Advances other than capital advances
Others
Withholding taxes and others
Unbilled revenues #
Defined benefit plan assets
Prepaid expenses
Deferred contract cost
Cost of obtaining a contract *
Cost of fulfillment
(In ₹ crore)
As at March 31,
2023
2022
159
88
684
264
36
332
191
652
674
246
20
99
593
309
Total non-current other assets
2,318
2,029
Current
Advances other than capital advances
Payment to vendors for supply of
goods
Others
202
193
Unbilled revenues #
6,972
5,909
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
As at March 31,
2023
3,268
2,745
853
175
261
14,476
16,794
2022
1,941
1,996
–
858
91
325
11,313
13,342
# 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 Group 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 Group 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.
The Group has entered into financing arrangements with a third party for
these assets. As at March 31, 2023, the financial liability pertaining to such
arrangements amounts to ₹731 crore. This includes ₹118 crore settled
directly by the third party to the customer on behalf of the Group 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.
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
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 carried 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
323
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
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 carried 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.
b. Derivative financial instruments
The Group holds derivative financial instruments, such as foreign
exchange forward and option contracts, to mitigate the risk
of changes in exchange rates on foreign currency exposures.
The counterparty for such contracts is generally a bank.
(i) Financial assets or financial liabilities, carried 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
forecasted 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
324
or is sold, terminated or exercised, the cumulative gain or loss
on the hedging instrument recognized in cash flow hedging
reserve, till the period the hedge was effective, remains in
cash flow hedging reserve until the forecasted transaction
occurs. The cumulative gain or loss previously recognized in
the cash flow hedging reserve is transferred to the net profit
in the Consolidated Statement of Profit and Loss upon the
occurrence of the related forecasted transaction. If the forecasted
transaction is no longer expected to occur, then the amount
accumulated in cash flow hedging reserve is reclassified to net
profit in the Consolidated Statement of Profit and Loss.
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.
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, option pricing model, market multiples,
available quoted market prices and dealer quotes. All methods of
assessing fair value result in general approximation of value, and
such value may never actually be realized.
Refer to table 'Financial instruments by category' below for the
disclosure on carrying value and fair value of financial assets and
liabilities. For financial assets and liabilities maturing within one
year from the Balance Sheet date and which are not carried at fair
value, the carrying amounts approximates fair value due to the
short maturity of these 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 ECL (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 loss or gain in
Consolidated Statement of Profit and Loss.
Infosys Integrated Annual Report 2022-23 Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2023 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)
Equity and preference securities
Tax-free bonds and government
bonds
Liquid mutual fund units
Target maturity fund units
Non-convertible debentures
Government securities
Commercial paper
Certificates of deposit
Other investments
Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)
Other financial 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
12,173
–
1,920
–
–
–
–
–
–
–
25,424
328
14,301
54,146
3,865
8,299
–
17,359
29,523
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
975
402
–
–
–
–
169
–
–
69
1,615
–
–
600
161
761
–
196
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,868
7,632
742
3,574
–
–
–
32
196
15,848
–
–
–
–
–
–
–
–
14
14
12,173
12,173
196
196
1,920
2,148(1)
975
402
3,868
7,632
742
3,574
169
25,424
328
14,402
71,805
3,865
8,299
975
402
3,868
7,632
742
3,574
169
25,424
328
14,318(2)
71,949
3,865
8,299
600
600
17,534
30,298
17,534
30,298
(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 ₹84 crore
(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones
325
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
The carrying value and fair value of financial instruments by categories as at March 31, 2022 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)
Equity and preference securities
Compulsorily convertible
debentures
Tax-free bonds and government
bonds
Liquid mutual fund units
Non-convertible debentures
Government securities
Certificates of deposit
Other investments
Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)
Other financial 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
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,213
8,171
3,429
–
–
–
20
194
15,833
–
–
–
–
–
–
–
–
3
3
17,472
17,472
218
7
2,122
2,012
4,213
8,171
3,429
152
218
7
2,447(1)
2,012
4,213
8,171
3,429
152
22,698
22,698
282
282
10,187
70,963
10,096(2)
71,197
4,134
5,474
4,134
5,474
655
655
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
For trade receivables, 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).
326
Infosys Integrated Annual Report 2022-23
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2023 is as follows :
Particulars
Assets
Investments (Refer to Note 2.5)
Liquid mutual funds
Target maturity fund units
Tax-free bonds
Government bonds
Non-convertible debentures
Government securities
Equity instruments
Preference securities
Commercial paper
Certificates of deposit
Other investments
Others
Derivative financial instruments gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments loss on outstanding foreign exchange forward and
option contracts (Refer to Note 2.13)
Financial liability under option arrangements (Refer to Note 2.13)(1)
Liability towards contingent consideration (Refer to Note 2.13)(1)
(1) Discount rate ranges from 10% to 15%
(In ₹ crore)
As at March
31, 2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
975
402
2,120
28
3,868
7,632
3
193
742
3,574
169
101
78
600
97
975
402
1,331
28
1,793
7,549
–
–
–
–
–
–
–
–
–
–
–
789
–
2,075
83
–
–
742
3,574
–
–
–
–
–
–
–
3
193
–
–
169
101
–
78
–
–
–
600
97
During the year ended March 31, 2023, government securities and tax-free bonds of ₹383 crore was transferred from Level 2 to Level 1 of
fair value hierarchy, since these were valued based on quoted price. Further, non-convertible debentures of ₹1,611 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, 2022 was as follows :
Particulars
Assets
Investments (Refer to Note 2.5)
Liquid mutual funds
Tax-free bonds
Government bonds
Non-convertible debentures
Government securities
Equity instruments
Preference securities
Certificates of deposit
Compulsorily convertible debentures
(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
8,171
2
216
3,429
7
2,012
1,238
22
3,736
8,046
–
–
–
–
–
1,187
–
477
125
–
–
3,429
–
–
–
–
–
–
2
216
–
7
327
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Particulars
Other investments
Others
Derivative financial instruments gain on outstanding foreign exchange
forward and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments loss on outstanding foreign exchange forward
and option contracts (Refer to Note 2.13)
Financial liability under option arrangements (Refer to Note 2.13)(1)
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, 2022
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
152
143
61
655
123
–
–
–
–
–
–
152
143
–
61
–
–
–
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 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 fair valuation of Level 3 assets and liabilities does not have a
significant impact in its value.
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 option 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, 2023 is as follows :
Particulars
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
(In ₹ crore)
Total
Net financial assets
Net financial liabilities
Total
20,777
(12,148)
8,629
7,459
(3,734)
3,725
1,816
(737)
1,079
1,809
(953)
856
2,604
(2,208)
396
34,465
(19,780)
14,685
The foreign currency risk from financial assets and liabilities as at March 31, 2022 was as follows :
Particulars
US Dollar
Euro
UK Pound
Sterling
Australian
Dollar
Other
currencies
(In ₹ crore)
Total
Net financial assets
Net financial liabilities
Total
328
18,224
(9,205)
9,019
4,976
(3,158)
1,818
1,510
(666)
844
1,350
(975)
375
2,115
(1,806)
309
28,175
(15,810)
12,365
Infosys Integrated Annual Report 2022-23
Sensitivity analysis between Indian rupee and US Dollar
Particulars
Impact on the Group's incremental operating margins
Year ended March 31,
2023
0.44%
2022
0.46%
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 option 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 option contracts are as follows :
Particulars
Derivatives designated as cash flow hedges
As at March 31, 2023
As at March 31, 2023
In million
In ₹ crore
In million
In ₹ crore
Forward contracts
In Euro
Option contracts
In Australian Dollar
In Euro
In UK Pound Sterling
Other derivatives
Forward contracts
In Australian Dollar
In Brazilian Real
In Canadian Dollar
In Chinese Yuan
In Czech Koruna
In Euro
In New Zealand Dollar
In Norwegian Krone
In Singapore Dollar
In Swiss Franc
In US Dollar
In UK Pound Sterling
In South African rand
Option contracts
In Australian Dollar
In Euro
In UK Pound Sterling
In US Dollar
Total forward and option contracts
–
140
325
55
10
–
–
41
364
316
30
100
204
1
1,670
86
85
30
160
15
300
–
770
2,907
559
55
–
–
49
134
2,825
154
79
1,245
8
13,726
877
39
165
1,431
153
2,465
27,641
8
185
280
32
–
6
34
38
296
297
20
80
252
15
1,166
65
45
–
81
–
677
67
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
329
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based on
the remaining period as at the Balance Sheet date:
Particulars
Not later than one month
Later than one month and not later
than three months
Later than three months and not later
than one year
Total
(In ₹ crore)
As at March 31,
2023
13,155
2022
6,237
11,159
12,444
3,327
27,641
4,972
23,653
During the years ended March 31, 2023 and March 31, 2022, the
Group has designated certain foreign exchange forward and
option contracts as cash flow hedges to mitigate the risk of
foreign exchange exposure on highly probable forecasted cash
transactions. The related hedge transactions for balance in cash
flow hedges as of March 31, 2023 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, 2023 and March 31, 2022 is as follows :
Particulars
Gain / (Loss)
Balance at the beginning of the year
Gain / (Loss) recognised in other
comprehensive income during the
year
Amount reclassified to profit or loss
during the year
Tax impact on above
Balance at the end of the period
(In ₹ crore)
Year ended March 31,
2023
2022
2
90
10
102
(99)
(113)
2
(5)
3
2
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 realise 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, 2023
As at March 31, 2022
Derivative
financial asset
Derivative
financial liability
Derivative
financial asset
Derivative
financial liability
127
(26)
101
(104)
26
(78)
179
(36)
143
(97)
36
(61)
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 ₹25,424 crore and ₹22,698
crore as at March 31, 2023 and March 31, 2022, respectively and
unbilled revenues amounting to ₹16,738 crore and ₹12,509
crore as at March 31, 2023 and March 31, 2022, respectively.
Trade receivables and unbilled revenues are typically unsecured
and are derived from revenues from customers primarily
located in the US. Credit risk has always been managed by the
Group through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers
to which the Group grants credit terms in the normal course
of business. The Group uses the expected credit loss model
to assess any required allowances; and uses a provision matrix
to compute the expected credit loss allowance for trade
receivables and unbilled revenues. This matrix takes into
account credit reports and other related credit information to
the extent available.
330
Infosys Integrated Annual Report 2022-23
The Group's exposure to credit risk is influenced mainly
by the individual characteristic of each customer and the
concentration of risk from the top few customers. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.
The details in respect of percentage of revenues generated from the
top five customers and top ten customers are as follows :
Days Sales Outstanding was 62 days and 67 days as of
March 31, 2023 and March 31, 2022, respectively.
Credit risk on cash and cash equivalents is limited as the Group
generally invests in deposits with banks and financial institutions
with high ratings, assigned by international and domestic credit
rating agencies. Ratings are monitored periodically and the
Group has considered the latest available credit ratings as at the
date of approval of these Consolidated financial statements.
Particulars
Year ended March 31,
(In %)
Revenue from top five customers
Revenue from top ten customers
Credit risk exposure
2023
12.7
20.2
2022
11.4
19.3
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, 2023 and March 31, 2022 was ₹228 crore and
₹143 crore, respectively.
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
Credit exposure
Particulars
Trade receivables
Unbilled revenues
2023
858
228
(166)
41
961
2022
752
143
(62)
25
858
(In ₹ crore)
As at March 31,
2023
25,424
16,738
2022
22,698
12,509
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, target maturity fund
units, tax-free bonds, certificates of deposit, commercial paper,
treasury bills, government securities, 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 the Group's
risk management program.
Liquidity risk
Liquidity risk is defined as the risk that the Group will not be able
to settle or meet its obligations on time.
The Group's principal sources of liquidity are cash and cash
equivalents and the cash flow that is generated from operations.
The Group has no outstanding borrowings. The Group
believes that the working capital is sufficient to meet its
current requirements.
As at March 31, 2023, the Group had a working capital of ₹31,695
crore including cash and cash equivalents of ₹12,173 crore
and current investments of ₹6,909 crore. 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, 2023 and March 31, 2022, the outstanding
compensated absences were ₹2,482 crore and ₹2,274 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, 2023 are as follows :
Particulars
Trade payables
Financial liability under option arrangements (Refer to Note 2.13)
Other financial liabilities (excluding liability towards contingent
consideration) on an undiscounted basis (Refer to Note 2.13)
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)
Less than 1 year
1-2 years
2-4 years
4-7 years
3,865
600
–
–
15,403
1,532
101
–
–
–
438
–
–
–
13
–
(In ₹ crore)
Total
3,865
600
17,386
101
331
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2022 were as follows :
Particulars
Trade payables
Financial liability under option arrangements (Refer to Note 2.13)
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
1-2 years
2-4 years
4-7 years
4,134
–
–
72
13,539
1,089
68
25
–
80
457
39
–
503
10
–
(In ₹ crore)
Total
4,134
655
15,095
132
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.
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 securities premium.
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 general reserve / retained earnings.
Retained earnings
Retained earnings represent the amount of accumulated
earnings of the Group.
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 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
332
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 currency translation,
remeasurement of net defined benefit liability / asset, equity
instruments fair valued through other comprehensive income,
changes on fair valuation of investments and changes in fair
value of derivatives designated as cash flow hedges, net of taxes.
Currency translation reserve
The exchange differences arising from the translation of financial
statements of foreign subsidiaries with functional currency other
than the Indian rupees is recognized in other comprehensive
income and is presented within equity.
Cash flow hedge reserve
When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value of
the derivative is recognized in other comprehensive income and
accumulated in the cash flow hedging reserve. The cumulative
gain or loss previously recognized in the cash flow hedging
reserve is transferred to the Consolidated Statement of Profit and
Loss upon the occurrence of the related forecasted transaction.
2.12.1 Equity share capital
Particulars
Authorized
(In ₹ crore, except as otherwise stated)
As at March 31,
2023
2022
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000) equity
shares
Issued, subscribed and paid-up
2,400
2,400
Equity shares, ₹5 par value (1)
2,069
2,098
413,63,87,925 (419,30,12,929) equity
shares fully paid-up (2)
2,069
2,098
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 1,21,72,119 (1,37,25,712)
Infosys Integrated Annual Report 2022-23
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 (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,
other than the amounts held by irrevocable controlled trusts.
For irrevocable controlled trusts, the corpus would be settled in
favor 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, 2023:
Bonus issue
The Company has allotted 218,41,91,490 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 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. 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.
Buyback
In the period of five years immediately preceding March 31, 2023,
including the buyback completed in February 2023 the Company
had purchased and extinguished a total of 22,67,52,951 fully paid-
up equity shares of face value ₹5 each from the stock exchange.
The Company has only one class of equity shares.
Capital Allocation Policy
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over a
5-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 February 2023
In line with the Capital Allocation Policy, the Board, at its meeting
held on October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (Maximum Buyback Size,
excluding buyback tax) at a price not exceeding ₹1,850 per share
(Maximum Buyback Price), subject to shareholders' approval by
way of Postal Ballot.
The shareholders approved the proposal of buyback of equity
shares recommended by its Board of Directors by way of
e-voting on the postal ballot, the results of which were declared
on December 3, 2022. The buyback was offered to all 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
December 7, 2022 and was completed on February 13, 2023.
During this buyback period, the Company had purchased and
extinguished a total of 6,04,26,348 equity shares from the stock
exchange at a volume weighted average buyback price of
₹1,539.06 per equity share comprising 1.44% of the pre-buyback
paid-up equity share capital of the Company. The buyback
resulted in a cash outflow of ₹9,300 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, 2023, the Company has created ‘Capital Redemption
Reserve’ of ₹30 crore equal to the nominal value of the
shares bought back as an appropriation from general reserve
and retained earnings.
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 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 buy back 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).
333
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
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 shares
bought back as an appropriation from general reserve.
2.12.2 Shareholding of promoter
Shares held by promoters at March 31, 2023:
Promoter name
Sudha Gopalakrishnan
Rohan Murty
S Gopalakrishnan
Nandan M Nilekani
Akshata Murty
Asha Dinesh
Sudha N Murty
Rohini Nilekani
Dinesh Krishnaswamy
Shreyas Shibulal
N. R. Narayana Murthy
Nihar Nilekani
Janhavi Nilekani
Kumari Shibulal
Deeksha Dinesh
Divya Dinesh
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
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, 2023, 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.
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
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
2.30
1.47
1.01
0.98
0.94
0.93
0.83
0.83
0.78
0.57
0.40
0.31
0.21
0.13
0.18
0.18
0.12
0.07
0.14
0.33
0.17
0.17
0.16
0.02
0.08
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
The percentage shareholding above has been computed considering the outstanding number of shares of 414,85,60,044
as at March 31, 2023.
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 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.
334
Infosys Integrated Annual Report 2022-23
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 ₹)
Final dividend for fiscal 2021
Interim dividend for fiscal 2022
Final dividend for fiscal 2022
Interim dividend for fiscal 2023
2023
–
–
16.00
16.50
2022
15.00
15.00
–
–
During the year ended March 31, 2023, on account of the final
dividend for fiscal 2022 and interim dividend for fiscal 2023,
the Company has incurred a net cash outflow of ₹13,632 crore
(excluding dividend paid on treasury shares).
The Board of Directors in their meeting held on April 13, 2023
recommended a final dividend of ₹17.50 per equity share for the
financial year ended March 31, 2023. This payment is subject to
the approval of shareholders in the AGM of the Company to be
held on June 28, 2023 and if approved, would result in a net cash
outflow of approximately ₹7,239 crore (excluding dividend paid
on treasury shares).
The details of shareholders holding more than 5% shares as at March 31, 2023 and March 31, 2022 are as follows :
Name of the shareholder
Deutsche Bank Trust Company Americas (Depository of ADR's legal
ownership)
As at March 31, 2023
As at March 31, 2022
Number of shares
% held Number of shares
% held
50,57,90,851
12.19
66,63,70,669
15.84
Life Insurance Corporation of India
29,82,44,977
7.19
24,33,47,641
5.78
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2023 and
March 31, 2022 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
2.12.4 Employee Stock Option Plan (ESOP)
Accounting policy
The Group recognizes compensation expense relating to share-
based payments in net profit based on estimated fair values of
the awards on the grant date. The estimated fair value of awards
is recognized as an expense in the statement of profit and loss
on a straight-line basis over the requisite service period for each
separately vesting portion of the award as if the award was
in-substance, multiple awards with a corresponding increase to
share options outstanding account.
Infosys Expanded Stock Ownership Program 2019 ("the 2019 Plan")
On June 22, 2019, pursuant to 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).
(In ₹ crore, except as stated otherwise)
As at March 31, 2023
As at March 31, 2022
Number of shares
Amount Number of shares
Amount
419,30,12,929
2,098
424,51,46,114
2,124
38,01,344
6,04,26,348
1
30
36,74,152
5,58,07,337
2
28
413,63,87,925
2,069
419,30,12,929
2,098
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 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). These instruments will generally vest over a
period of 4 years. The plan numbers mentioned above are further
adjusted with 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
335
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
and Remuneration Committee (NARC). 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.
The controlled trust holds 1,21,72,119 and 1,37,25,712 shares as
at March 31, 2023 and March 31, 2022, 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, 2023 and March 31, 2022.
The summary of grants during the years ended March 31, 2023 and March 31, 2022 is as follows :
Particulars
Equity-settled RSUs
Key Management Personnel (KMP)
Employees other than KMP
Cash-settled RSUs
KMP
Employees other than KMP
Total Grants
Notes on grants to KMP:
CEO & MD
Based on the recommendations of the Board and the approval of
the shareholders at the AGM held on June 25, 2022, Salil Parekh
has been reappointed as the CEO and MD of the Company for a
term commencing on July 1, 2022 and ending on March 31, 2027.
The remuneration is approved by the shareholders in the AGM.
The revised employment agreement is effective July 1, 2022.
Under the 2015 Plan
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 effective till
June 30, 2022, approved the grant of performance-based RSUs of
fair value of ₹13 crore for fiscal 2023 under the 2015 Plan. These
RSUs will vest in line with the employment agreement based on
achievement of certain performance targets. Accordingly, 84,361
performance based RSU’s were granted effective May 2, 2022.
Further, in line with the shareholders approval and revised
employment contract which is effective July 1, 2022, the
Board, on July 24, 2022, based on the recommendations of the
Nomination and Remuneration Committee:
• Approved the grant of performance-based RSUs (Annual
performance equity grant) of fair value of ₹21.75 crore
for fiscal 2023 under the 2015 Plan. These RSUs will
vest in line with the employment agreement based on
achievement of certain performance targets. Accordingly,
140,228 performance based RSUs were granted effective
August 1, 2022.
• Approved the performance-based grant of RSUs (annual
performance equity ESG grant) of fair value of ₹2 crore for
fiscal 2023 under the 2015 Plan. These RSUs will vest in line
with the employment agreement based on achievement of
certain environment, social and governance milestones as
336
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2023
2022
2023
2022
2,10,643
1,48,762
3,67,479
2,84,543
37,04,014
27,01,867
17,84,975
13,05,880
39,14,657 28,50,629 21,52,454 15,90,423
–
–
–
–
–
–
–
92,400
92,400
–
49,960
49,960
39,14,657 28,50,629 22,44,854 16,40,383
determined by the Board. Accordingly, 12,894 performance
based RSUs were granted effective August 1, 2022.
• Approved the performance-based grant of RSUs (Annual
performance Equity TSR grant) of fair value of ₹5 crore for
fiscal 2023 under the 2015 Plan. These RSUs will vest in line
with the employment agreement based on Company’s
performance on cumulative relative TSR over the years and as
determined by the Board. Accordingly, 32,236 performance
based RSUs were granted effective August 1, 2022.
For the above RSUs, the grant date in accordance with Ind AS 102,
Share-based payment is July 1, 2022.
Further, 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 crore which
will vest overtime 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 19,341 RSUs was
made effective February 1, 2023 for fiscal 2023.
Though the annual time-based grants and annual performance
equity TSR grant for the remaining employment term ending
on March 31, 2027 have not been granted as of March 31, 2023,
since the service commencement date precedes the grant date,
the Company has recorded employment stock compensation
expense in accordance with Ind AS 102, Share-based payment.
Under the 2019 Plan
The Board, on April 13, 2022, based on the recommendations
of the Nomination and Remuneration Committee, approved a
performance-based grant of RSUs amounting to ₹10 crore for
fiscal 2023 under the 2019 Plan. These RSUs will vest in line with
the employment agreement effective till June 30, 2022 based on
achievement of certain performance targets. Accordingly, 64,893
performance-based RSUs were granted effective May 2, 2022.
Infosys Integrated Annual Report 2022-23
Other KMP
Under the 2015 Plan
During the year ended March 31, 2023, based on
recommendations of the Nomination and Remuneration
Committee, the Board approved 66,872 time-based RSUs and
11,547 performance-based RSUs to other KMP under the 2015
Plan. Time-based RSUs will vest over four years and performance-
based RSUs will vest over one to three years based on 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 in the above
Under the 2019 Plan
During the year ended March 31, 2023, based on
recommendations of the Nomination and Remuneration
Committee, the Board approved performance-based grants of
1,45,750 RSUs to other KMPs under the 2019 Plan. These RSUs
will vest over three years based on achievement of certain
performance targets.
(In ₹ crore)
Year ended March 31,
2023
2022
49
470
519
5
65
350
415
22
#
Includes reversal of employee stock compensation expense on account of resignation / retirement of key management personnel.
The activity in the 2015 and 2019 Plan for equity-settled, share-based payment transactions during the years ended March 31, 2023 and
March 31, 2022 is as follows :
Particulars
Year ended March 31, 2023
Year ended March 31, 2022
Shares arising
out of options
Weighted average
exercise price (₹)
Shares arising
out of options
Weighted average
exercise price (₹)
2015 Plan: RSU
Outstanding at the beginning
Granted
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
2015 Plan: Employee Stock Options (ESOPs)
Outstanding at the beginning
Granted
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
2019 Plan: RSU
Outstanding at the beginning
Granted
Exercised
Forfeited and expired
Outstanding at the end
Exercisable at the end
62,32,975
21,52,454
21,05,904
8,71,507
54,08,018
7,87,976
7,00,844
–
5,66,814
–
1,34,030
1,34,030
49,58,938
39,14,657
11,28,626
5,22,931
72,22,038
13,52,150
4.82
5.00
4.50
4.93
5.00
4.97
557
–
596
–
529
529
5.00
5.00
5.00
5.00
5.00
5.00
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
337
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2015 Plan
on the date of exercise was ₹1,515 and ₹1,705, respectively.
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2019 Plan
on the date of exercise was ₹1,485 and ₹1,560, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 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 - 630 (ESOP)
72,22,038
–
1.33
–
5.00
–
54,08,018
1,34,030
1.49
1.77
5.00
529
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 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)
49,58,938
–
1.43
–
5.00
–
62,32,975
7,00,844
1.47
0.65
4.82
557
As at March 31, 2023 and March 31, 2022, 2,24,924 and 2,65,561 cash-settled options were outstanding, respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹4 crore and ₹13 crore as at March 31, 2023 and March 31, 2022, respectively.
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options and
Monte Carlo simulation model is used for TSR-based options.
The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected
term and the risk-free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of
the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the
options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of
their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated
between each peer entity and the indices as a whole or between each entity in the peer group.
The fair value of each equity-settled award is estimated on the date of grant using the following assumptions :
Particulars
For options granted in
Fiscal 2023 Equity
shares–RSU
Fiscal 2023–ADS–
RSU
Fiscal 2022–Equity
shares–RSU
Fiscal 2022–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)
1,525
5.00
23-32
1-4
2-3
5-7
1,210
18.08
0.07
27-34
1-4
2-3
2-5
13.69
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
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.
338
Infosys Integrated Annual Report 2022-23 2.13 Other financial liabilities
(In ₹ crore)
Particulars
Particulars
Non-current
Others
Accrued compensation to
employees (1)
Accrued expenses (1)
Compensated absences
Financial liability under option
arrangements (2)#
Payable for acquisition of business
- Contingent consideration (2)
Other payables (1)(4)
5
1,628
83
–
–
342
8
946
92
655
56
580
Total non-current other financial
liabilities
2,058
2,337
As at March 31,
(1) Financial liability carried at amortized
2023
2022
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
As at March 31,
2023
2022
17,359
15,061
761
14
101
836
3
132
(4) Deferred contract cost (Refer to Note 2.10) includes technology assets
taken over by the Group 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 Group 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. The Group has entered
into financing arrangements with a third party for these assets. As at
March 31, 2023, the financial liability pertaining to such arrangements
amounts to ₹731 crore. During the year ended March 31, 2023, ₹118 crore
was settled directly by the third party to the customer on behalf of the
Group and accordingly considered as non-cash transaction.
Current
Unpaid dividends (1)
Others
37
36
# Represents liability related to options issued by the Group over the non-
controlling interests in its subsidiaries
Accrued expenses primarily relates to cost of technical sub-
contractors, telecommunication charges, legal and professional
charges, brand building expenses, overseas travel expenses
and office maintenance.
2.14 Trade payables
Particulars
Trade payables
Total trade payables
(In ₹ crore)
As at March 31,
2023
3,865
3,865
2022
4,134
4,134
Accrued compensation to
employees (1)
Accrued expenses (1)
Retention monies (1)
Payable for acquisition of business
– Contingent consideration (2)
Payable by controlled trusts (1)
4,174
7,802
20
97
211
4,061
7,476
13
67
211
Compensated absences
2,399
2,182
Financial liability under option
arrangements (2)#
Foreign currency forward and
options contracts (2)(3)
Capital creditors (1)
Other payables (1)(4)
Total current other financial
liabilities
Total other financial liabilities
600
78
674
–
61
431
2,466
1,299
18,558
20,616
15,837
18,174
The trade payables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :
Particulars
Trade payables
Total trade payables
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)
3,040
3,299
3,040
3,299
825
835
825
835
–
–
–
–
–
–
–
–
–
–
–
–
3,865
4,134
3,865
4,134
339
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Relationship with struck off companies for the year ending March 31, 2022 was as follows :
Name of struck off company
Nature of
transactions
Transactions during
the year ended
March 31, 2022
Balance outstanding
at the end of the year
as at March 31, 2022
Relationship with the
struck off company,
if any, to be disclosed
Compulease Networks Private Limited
Mysodet Private Limited
Payables
Payables
–*
–*
–
–
Vendor
Vendor
* Less than ₹1 crore
There are no transactions with struck off companies for the year ending March 31, 2023.
2.15 Other liabilities
b. Onerous contracts
Particulars
Non-current
Others
Deferred income – government
grants
Accrued defined benefit liability
Deferred income
Others
Total non-current other liabilities
Current
Unearned revenue
Others
(In ₹ crore)
As at March 31,
2023
2022
43
445
6
6
500
64
367
9
11
451
7,163
6,324
Withholding taxes and others
3,632
2,834
Accrued defined benefit liability
Deferred income – government
grants
Others
4
29
2
5
11
4
Total current other liabilities
Total other liabilities
10,830
11,330
9,178
9,629
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.
340
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,
2023
2022
Post-sales client support and
others
Total provisions
1,307
1,307
975
975
The movement in the provision for post-sales client
support is as follows :
Particulars
Balance at the beginning
Impact on adoption of amendment to Ind AS 37
Provision recognized / (reversed)
Provision utilized
Translation difference
Balance at the end
(In ₹ crore)
Year ended
March 31, 2023
935
19
456
(142)
39
1,307
Provision for post-sales client support and other provisions
majorly represents costs associated with providing 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.
Provision for post-sales client support and other provisions
is included in cost of sales in the condensed Consolidated
Statement of Profit and Loss.
Infosys Integrated Annual Report 2022-23
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
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;
deferred tax assets and deferred 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 is as follows:
Particulars
Year ended March 31,
(In ₹ crore)
Current taxes
Deferred taxes
Income tax expense
2023
9,287
(73)
9,214
2022
7,811
153
7,964
Income tax expense for the years ended March 31, 2023 and
March 31, 2022 includes reversal (net of provisions) of ₹106
crore and ₹268 crore, respectively. These reversals pertaining to
prior periods are primarily on account of adjudication of certain
disputed matters, upon filing of tax return and completion of
assessments, 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 unrecognized deferred tax
assets
Effect of differential tax rates
Effect of non-deductible expenses
Impact of change in tax rate
Others
Income tax expense
2023
33,322
34.94%
11,644
2022
30,110
34.94%
10,522
(2,916)
(2,949)
1,060
(106)
984
(268)
(52)
(52)
109
(329)
153
–
(349)
9,214
72
(196)
162
(94)
(217)
7,964
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2023 and March 31, 2022 is 34.94% each.
The foreign tax expense is due to income taxes payable overseas
principally in the US. 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 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, 2023 and
March 31, 2022 substantially relates to origination and reversal of
temporary differences.
341
Infosys Integrated Annual Report 2022-23
The details of income tax assets and income tax liabilities as at
March 31, 2023 and March 31, 2022 are as follows :
Particulars
As at March 31,
(In ₹ crore)
Income tax assets
Current income tax liabilities
Net current income tax asset /
(liability) at the end
2023
6,459
3,384
2022
6,152
2,607
3,075
3,545
The gross movement in the current income tax assets / (liabilities) for
the years ended March 31, 2023 and March 31, 2022 is as follows :
Particulars
Net current income tax asset /
(liability) at the beginning
Translation differences
Income tax paid
Current income tax expense
Income tax benefit arising on exercise
of stock options
Additions through business
combination
Tax impact on buyback expenses
Income tax on other comprehensive
income
Impact on account of Ind AS 37
adoption
Net current income tax asset /
(liability) at the end
(In ₹ crore)
Year ended March 31,
2023
2022
3,545
1
8,794
(9,287)
3,665
(7)
7,612
(7,811)
51
(12)
9
(24)
(2)
63
–
8
15
–
3,075
3,545
Consolidated Financial Statements
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, 2023, Infosys' US branch net assets amounted to
approximately ₹6,948 crore. As at March 31, 2023, the Company
has a deferred tax liability for Branch Profit Tax of ₹148 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 ₹10,948 crore and ₹9,618
crore as at March 31, 2023 and March 31, 2022, respectively,
associated with investments in subsidiaries and branches as
the Company is able to control the timing of reversal of the
temporary difference and it is probable that the temporary
differences will not reverse in the foreseeable future. The Group
majorly intends to repatriate earnings from subsidiaries
and branches only to the extent these can be distributed
in a tax-free manner.
Deferred income tax assets have not been recognized on
accumulated losses of ₹4,423 crore and ₹4,487 crore as at
March 31, 2023 and March 31, 2022, respectively, as it is probable
that future taxable profit will not be available against which the
unused tax losses can be utilized in the foreseeable future.
The details of expiration of unused tax losses as at
March 31, 2023 are as follows :
Year
2024
2025
2026
2027
2028
Thereafter
Total
(In ₹ crore)
As at
March 31, 2023
122
138
146
88
494
3,435
4,423
The details of expiration of unused tax losses as at
March 31, 2022 were as follows :
(In ₹ crore)
As at
March 31, 2022
201
154
127
153
52
3,800
4,487
Year
2023
2024
2025
2026
2027
Thereafter
Total
342
Infosys Integrated Annual Report 2022-23
The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2023 is as follows :
Particulars
Carrying
value as at
April 1, 2022
Changes
through
profit and
loss
Addition
through
business
combination
Impact on
account of
Ind AS 37
adoption
Changes
through OCI
Translation
difference
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)
156
180
51
213
529
131
676
(25)
49
(308)
(834)
(852)
90
56
17
43
15
48
47
114
(13)
22
8
70
35
(499)
166
73
–
–
–
–
–
–
–
–
–
(80)
–
–
(1)
(81)
–
–
–
–
–
2
–
–
–
–
–
–
–
2
–
–
–
–
–
–
–
2
–
–
–
–
–
2
(4)
–
2
–
–
1
55
1
5
(26)
(67)
–
6
(27)
(In ₹ crore)
Carrying
value as at
March 31,
2023
169
223
68
261
576
248
718
–
62
(344)
(866)
(1,351)
261
25
The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2022 was as follows :
Particulars
Deferred income tax assets / (liabilities)
Property, plant and equipment
Lease liabilities
Accrued compensation to employees
Trade receivables
Compensated absences
Post-sales client support
Credits related to branch profits
Derivative financial instruments
Intangible assets
Intangibles arising on business combinations
Branch profit tax
SEZ Re-investment Reserve
Others
Total deferred income tax assets / (liabilities)
Carrying
value as at
April 1, 2021
Changes
through
profit and
loss
Addition
through
business
combination
Changes
through OCI
Translation
difference
(In ₹ crore)
Carrying
value as at
March 31,
2022
255
166
42
217
497
121
355
(57)
31
(368)
(500)
(613)
77
223
(100)
14
10
(4)
32
9
308
29
17
62
(316)
(239)
25
(153)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
–
–
–
–
(12)
(9)
1
–
(1)
–
–
1
13
–
1
(2)
(18)
–
–
(5)
156
180
51
213
529
131
676
(25)
49
(308)
(834)
(852)
90
56
343
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
The 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,
2023
2022
1,245
1,212
(1,220)
(1,156)
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 depends on 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.
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 Group derives revenues primarily from IT services comprising
software development and related services, cloud and
infrastructure 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 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.
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
344
performance obligation based on the relative standalone selling
price. The price that is regularly charged for an item, when sold
separately, is the best evidence of its standalone selling price.
In the absence of such evidence, the primary method used to
estimate standalone selling price is the expected cost plus a
margin, under which the Group estimates the cost of satisfying
the performance obligation and then adds an appropriate
margin based on similar services.
The Group’s contracts may include variable consideration
including rebates, volume discounts and penalties. The Group
includes variable consideration as part of transaction price
when there is a basis to reasonably estimate the amount of
the variable consideration and when it is probable that a
significant reversal of cumulative revenue recognized will
not occur when the uncertainty associated with the variable
consideration is resolved.
Revenue on time-and-material and unit-of-work-based contracts,
are recognized as the related services are performed. Fixed-price
maintenance revenue is recognized ratably either on a straight-
line basis, when services are performed through an indefinite
number of repetitive acts over a specified period, or ratably
using a percentage-of-completion method when the pattern
of benefits from the services rendered to the customer and
the Group’s costs to fulfil the contract is not even through the
period of contract because the services are generally discrete
in nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations
are satisfied over time, is recognized using the percentage-
of-completion method. Efforts or costs expended are used to
determine progress towards completion as there is a direct
relationship between input and productivity. Progress towards
completion is measured as the ratio of costs or efforts incurred to
date (representing work performed) to the estimated total costs
or efforts. Estimates of transaction price and total costs or efforts
are continuously monitored over the term of the contracts and
are recognized in net profit in the period when these estimates
change or when the estimates are revised. Revenues and the
estimated total costs or efforts are subject to revision as the
contract progresses. Provisions for estimated losses, if any, on
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 is 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
Infosys Integrated Annual Report 2022-23 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
are made available to the customer. Revenue from licenses
where the customer obtains a “right to access” is recognized
over the access period.
Arrangements to deliver software products generally have
three elements: license, implementation and Annual Technical
Services (ATS). When implementation services are provided in
conjunction with the licensing arrangement, and the license
and implementation have been identified as two distinct
separate performance obligations, the transaction price for
such contracts are allocated to each performance obligation of
the contract based on their relative standalone selling prices.
In the absence of standalone selling price for implementation,
the Group uses the expected cost-plus-margin approach in
estimating the standalone selling price. Where the license
is required to be substantially customized as part of the
implementation service, the entire arrangement fee for license
and implementation is considered to be a single performance
obligation and the revenue is recognized using the percentage-
of-completion method while 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, 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 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 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 the 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, 2023 and
March 31, 2022 is as follows :
Particulars
(In ₹ crore)
Year ended March 31,
2023
2022
Revenue from software services
1,37,575
1,13,536
Revenue from
products and platforms
9,192
8,105
Total revenue from operations
1,46,767
1,21,641
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.
345
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
For the years ended March 31, 2023 and March 31, 2022 :
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
Total
Revenue by offerings
Digital
Core
Total
28,086 14,700
24,410
11,989
7,373
5,344
6,746
4,759
1,909
1,933
72
90
6,395
1,088
5,813
896
43,763 21,204
38,902 17,734
24,006
13,970
20,391 10,857
19,757
7,234
18,511
6,877
43,763 21,204
38,902 17,734
10,903
8,474
3,836
3,598
164
315
3,183
2,795
18,086
15,182
11,959
9,310
6,127
5,872
18,086
15,182
9,953
7,430
6,993
5,766
213
153
1,380
1,135
18,539
14,484
11,627
8,412
6,912
6,072
18,539
14,484
7,560
11,101
6,303
9,342
10,910
6,606
84
69
481
358
275
224
423
412
68
58
7,334
6,173
2,580
2,203
28
27
143
114
1,087
90,724
937
364
227
968
586
1,769
1,700
75,058
37,675
30,129
3,861
3,585
14,507
12,869
19,035 11,867
10,085
4,188
1,46,767
13,336 10,036
8,517
3,450 1,21,641
13,626
7,629
8,240
5,817
5,409
5,096
4,238
4,219
6,394
4,925
3,691
3,592
2,061
1,452
2,127
1,998
91,272
69,404
55,495
52,237
19,035 11,867
10,085
4,188
1,46,767
13,336 10,036
8,517
3,450 1,21,641
(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 and China, Infosys Public Services and other enterprises in Public Services
* Geographical revenue is based on the domicile of customer.
Digital services
Products and platforms
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, support and integration services.
The Group also derives revenues from the sale of products and
platforms including Finacle® – core banking solution, Edge Suite
of products, Panaya platform, Infosys Equinox, Infosys Helix,
Infosys Applied AI, Infosys Cortex, Stater digital platform and
Infosys McCamish – insurance platform.
The percentage of revenue from fixed-price contracts for
each of the years ended March 31, 2023 and March 31, 2022 is
approximately 52% and 53%, respectively.
Trade Receivables and Contract Balances
The timing of revenue recognition, billings and cash collections
results in receivables, unbilled revenue, and unearned revenue
on the Group’s Consolidated Balance Sheet. Amounts are billed
as work progresses in accordance with agreed-upon contractual
terms, either at periodic intervals (e.g., monthly or quarterly) or
upon achievement of contractual milestones.
346
Infosys Integrated Annual Report 2022-23
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 depends on completion of
contractual milestones.
Invoicing in excess of earnings are classified as unearned revenue.
Trade receivables and unbilled revenues are presented net of
impairment in the consolidated Balance Sheet.
During the years ended March 31, 2023 and March 31, 2022, the
Company recognized revenue of ₹5,387 crore and ₹3,551 crore
arising from opening unearned revenue as of April 1, 2022 and
April 1, 2021, respectively.
During the years ended March 31, 2023 and March 31, 2022,
₹5,950 crore and ₹4,047 crore of unbilled revenue pertaining
to other fixed-price and fixed-time frame contracts as
of April 1, 2022 and April 1, 2021, 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 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, 2023, other
than those meeting the exclusion criteria mentioned above,
is ₹80,867 crore. Out of this, the Group expects to recognize
revenue of around 57% 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, 2022 was ₹74,254 crore. The contracts can generally
be terminated by the customers and typically include 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 foreign
currency 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, EdgeVerve,
Skava, Infosys Green Forum and controlled trusts is the Indian
Rupee. The functional currencies for foreign subsidiaries are
their respective local currencies. These financial statements
are presented in Indian rupees (rounded off to crore; one crore
equals ten million).
Transactions and translations
Foreign-currency denominated monetary assets and liabilities
are translated into the relevant functional currency at
exchange rates in effect at the Balance Sheet date. The gains
or losses resulting from such translations are recognized in
the Consolidated Statement of Profit and Loss and reported
within exchange gains / (losses) on translation of assets and
liabilities, net, except when deferred in Other Comprehensive
Income as qualifying cash flow hedges. Non-monetary assets
and non-monetary liabilities denominated in a foreign currency
and measured at fair value are translated at the exchange rate
prevalent at the date when the fair value was determined. Non-
monetary assets and non-monetary liabilities denominated in a
foreign currency and measured at historical cost are translated
at the exchange rate prevalent at the date of transaction.
The related revenue and expense are recognized using
the same exchange rate.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue,
expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction.
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 off, 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).
347
Infosys Integrated Annual Report 2022-23 (In ₹ crore)
Year ended March 31,
2023
2022
Employee benefit expenses
Salaries including bonus
75,239
61,522
Contribution to provident and
other funds
Share-based payments to
employees (Refer to Note 2.12)
Staff welfare
2,143
1,617
519
458
415
432
78,359
63,986
Cost of software packages and others
For own use
1,937
1,417
Third party items bought for
service delivery to clients
8,965
10,902
5,394
6,811
Other expenses
Repairs and maintenance
1,208
1,066
Power and fuel
Brand and marketing
Short-term leases
Rates and taxes
Consumables
Insurance
Provision for post-sales client
support and others
Commission to non-whole time
directors
Impairment loss recognized /
(reversed) under expected credit
loss model
Contributions towards Corporate
Social Responsibility
Others
176
905
92
299
158
174
120
15
132
553
61
265
146
164
78
11
283
170
471
491
4,392
426
352
3,424
During the year ended March 31, 2022, in accordance with the
Companies (Corporate Social Responsibility Policy) Amendment
Rules, 2021 (“the Rules”), the Company transferred certain assets
to its controlled subsidiary ‘Infosys Green Forum’, a Company
created under Section 8 of the Companies Act, 2013.
Consolidated Financial Statements
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.
2.20 Expenses
Particulars
Government grant
The Group recognizes government grants only when there is
reasonable assurance that the conditions attached to them will
be complied with, and the grants will be received. Government
grants related to assets are treated as deferred income and are
recognized in 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 intend to compensate.
Other income for the years ended March 31, 2023 and March 31,
2022 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
carried at fair value through other
comprehensive income
Non-convertible debentures,
commercial paper, certificates of
deposit and government securities
Income on investments carried at fair
value through profit or loss
Gain / (loss) on liquid mutual funds
and other investments
Income on investments carried at fair
value through other comprehensive
income
Exchange gains / (losses) on forward
and options contracts
Exchange gains / (losses) on translation
of other assets and liabilities
Miscellaneous income, net
Total other income
(In ₹ crore)
Year ended March 31,
2023
2022
149
712
152
851
955
642
148
177
1
(647)
1,062
321
2,701
1
88
186
198
2,295
348
Infosys Integrated Annual Report 2022-23
2.21 Leases
Accounting policy
The Group as a lessee
The Group’s lease asset classes primarily consist of leases for
land, buildings and computers. The Group assesses whether a
contract contains a lease, at 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: (1) the contract involves the use of an identified asset (2)
the Group has substantially all of the economic benefits from use
of the asset through the period of the lease and (3) 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 asset (“ROU”) 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
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 leasehold
improvements undertaken over the lease term, costs relating
to the termination of the lease and the importance of the
underlying asset to Group’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.
The Group as a lessor
Certain lease arrangements include 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 right-of-use 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.
Right-of-use 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.
Right-of-use 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.
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 right
of use asset if the Group changes its assessment to 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.
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 right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
The changes in the carrying value of right-of-use assets for the year ended March 31, 2023 are as follows :
Particulars
Balance as of April 1, 2022
Additions *
Deletions
Depreciation
Translation difference
Balance as of March 31, 2023
*Net of adjustments on account of modifications and lease incentives
Category of ROU asset
Land
Buildings
Vehicles Computers
628
–
–
(6)
1
623
3,711
847
(45)
(671)
54
3,896
16
8
–
(10)
1
15
468
2,646
(364)
(499)
97
2,348
(In ₹ crore)
Total
4,823
3,501
(409)
(1,186)
153
6,882
349
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
The changes in the carrying value of right-of-use assets for the year ended March 31, 2022 were as follows :
Particulars
Balance as of April 1, 2021
Additions *
Deletions
Depreciation
Translation difference
Balance as of March 31, 2022
Category of ROU asset
Land
Buildings
Vehicles Computers
630
–
–
(6)
4
628
3,984
449
(85)
(657)
20
3,711
19
6
–
(10)
1
16
161
459
(47)
(108)
3
468
(In ₹ crore)
Total
4,794
914
(132)
(781)
28
4,823
*Net of adjustments on account of modifications and lease incentives
The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the Consolidated
Statement of Profit and Loss.
The break-up of current and non-current lease liabilities as at
March 31, 2023 and March 31, 2022 is as follows :
Particulars
As at March 31,
(In ₹ crore)
Current lease liabilities
Non-current lease liabilities
Total
2023
1,242
7,057
8,299
2022
872
4,602
5,474
The movement in lease liabilities during the years ended
March 31, 2023 and March 31, 2022 is as follows :
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 ₹92
crore and ₹61 crore for the years ended March 31, 2023 and
March 31, 2022, respectively.
The movement in the net investment in sublease of
ROU assets during the years ended March 31, 2023 and
March 31, 2022 is as follows :
Particulars
Year ended March 31
(In ₹ crore)
Particulars
Year ended March 31,
Additions
(In ₹ crore)
Balance at the beginning
Balance at the beginning
Additions
Deletions
Finance cost accrued during the
period
Payment of lease liabilities
Translation difference
Balance at the end
2023
5,474
3,503
(49)
245
(1,241)
367
8,299
2022
5,325
933
(134)
175
(956)
131
5,474
The table below provides details regarding the contractual
maturities of lease liabilities as at March 31, 2023 and
March 31, 2022 on an undiscounted basis :
Interest income accrued during the
period
Lease receipts
Translation difference
Balance at the end
The details regarding the contractual maturities of net
investment in sublease of ROU asset on an undiscounted
basis during the year ended March 31, 2023 and March 31,
2022 are as follows :
Particulars
As at March 31,
(In ₹ crore)
2023
372
6
13
(63)
30
358
2022
388
5
13
(48)
14
372
2023
63
264
69
396
2022
55
235
126
416
(In ₹ crore)
Less than one year
As at March 31,
One to five years
More than five years
Total
2023
1,803
5,452
1,978
9,233
2022
991
3,244
1,972
6,207
Leases not yet commenced to which the Group is committed is
₹172 crore for a lease term ranging from three to ten years.
Particulars
Less than one year
One to five years
More than five years
Total
350
Infosys Integrated Annual Report 2022-23
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.
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 a lump-
sum payment as set out in rules of each fund and includes
death and disability benefits. The defined benefit plans require
contributions, which are based on a percentage of salary that
varies depending on the age of the respective employees.
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 actuarial risks, such as longevity 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
351
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
2.22.1 Gratuity and pension
The details of the defined benefit retirement plans and the amounts recognized in the Group's financial statements as at March 31, 2023
and March 31, 2022 are as follows :
Particulars
Change in benefit obligations
Benefit obligations at the beginning
Transfer
Service cost
Interest expense
Remeasurements – Actuarial (gains) / losses
Past service cost – Plan amendments
Employee contribution
Benefits paid
Translation difference
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the beginning
Transfer
Interest income
Remeasurements – Return on plan assets excluding
amounts included in interest income
Employer contribution
Employee contribution
Benefits paid
Translation difference
Fair value of plan assets at the end
Funded status
Defined benefit plan asset
Defined benefit plan liability
Gratuity
As at March 31,
2023
2022
1,722
1,624
–
276
103
(72)
(1)
–
(268)
18
1,778
1,711
–
105
24
175
–
(260)
–
1,755
(23)
23
(46)
–
219
89
81
–
–
(291)
–
1,722
1,610
–
96
24
267
–
(286)
–
1,711
(11)
22
(33)
(In ₹ crore)
Pension
As at March 31,
2023
926
19
41
5
(143)
–
27
(46)
88
917
846
19
4
(95)
37
27
(46)
78
870
(47)
13
(60)
2022
814
55
40
3
(14)
14
27
(41)
28
926
690
55
3
53
37
27
(41)
22
846
(80)
8
(88)
The amounts for the years ended March 31, 2023 and March 31, 2022 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)
Plan amendments
Net cost
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
276
(2)
(1)
273
2022
219
(7)
–
212
2023
41
1
–
42
(In ₹ crore)
2022
40
–
14
54
352
Infosys Integrated Annual Report 2022-23
The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Consolidated Statement of Other Comprehensive
Income are as follows :
Particulars
Remeasurements of the net defined benefit liability
/ (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets, excluding amounts
included in the net interest on the net defined benefit
liability / (asset)
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
2022
2023
2022
(In ₹ crore)
(72)
(24)
(96)
81
(24)
57
(143)
95
(48)
(14)
(53)
(67)
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31
Year ended March 31,
(Gain) / loss from change in
demographic assumptions
(Gain) / loss from change in financial assumptions
(Gain) / loss from experience adjustment
2023
–
(62)
(10)
(72)
2022
–
(46)
127
81
2023
–
(148)
5
(143)
The weighted-average assumptions used to determine benefit obligations as at March 31, 2023 and March 31, 2022 are as follows :
Particulars
Discount rate (in %) (1)
Weighted average rate of increase in compensation
levels (in %) (2)
Weighted average duration of defined benefit
obligation (3)
Gratuity
As at March 31,
2023
7.1
6
2022
6.5
6
Pension
As at March 31,
2023
1.8-3.8
1-3
5.9 years
5.9 years
12 years
14 years
2022
(1)
(22)
9
(14)
2022
0.4-1.7
1-3
The weighted-average assumptions used to determine net periodic benefit cost for the years ended March 31, 2023 and
March 31, 2022 are as follows :
Particulars
Discount rate
Weighted average rate of increase in compensation
levels
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2023
6.5
6
2022
6.1
6
2023
0.4-1.7
1-3
(In %)
2022
0.1-0.9
1-3
(1) For domestic defined benefit plan in India, the market for high quality corporate bonds being not developed, the yield of government bonds is considered
as the discount rate. For most of our overseas defined benefit plan, given that the market for high quality corporate bonds is not developed, the Government
bond rate adjusted for corporate spreads is used.
(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, inflation in respective markets and the Management’s estimate of future salary increases.
(3) Attrition rate considered is the Management’s estimate based on the past long-term trend of employee turnover in the Company. The 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 post-
employment benefit obligation.
353
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
For domestic defined benefit plan in India, assumptions
regarding future mortality experience are set in accordance
with the published statistics by the Life Insurance Corporation
of India. For overseas defined benefit plan, the assumptions
regarding future mortality experience are set with regard to
the latest statistics in life expectancy, plan experience and
other relevant data.
The Group assesses all of the above assumptions
with its projected long-term plans of growth and
prevalent industry standards.
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, 2023 and March 31, 2022, and contributions for gratuity
are invested in a scheme with the Life Insurance Corporation
of India as permitted by Indian law. The plan assets of the
overseas defined benefit plan have been primarily invested in
insurer managed funds and the asset allocation for plan assets is
determined based on the investment criteria prescribed under
the relevant regulations applicable to pension funds and the
insurer managers. The insurers' investment are well diversified
and also provide for guaranteed interest rates arrangements.
Actual return on assets (including remeasurements) of
the Gratuity Plan for the years ended March 31, 2023 and
March 31, 2022 were ₹129 crore and ₹120 crore, respectively and
for the pension plan were (₹91) crore and ₹56 crore, respectively.
The contributions for gratuity are invested in a scheme with the
Life Insurance Corporation of India as permitted by Indian law.
The details of major plan assets into various categories as at
March 31, 2023 and March 31, 2022 are as follows :
Particulars
Equity
Bonds
Real estate / Property
Cash and cash equivalents
Other
(In %)
Pension
As at March 31,
2023
2022
34
32
26
1
7
34
32
26
1
7
These defined benefit plans expose the Group to actuarial risk
which are set out below :
Interest rate risk: The present value of the defined benefit plan
liability is generally calculated using a discount rate determined
with reference to government bond yields and in certain
overseas jurisdictions, it is calculated in reference to government
bond yield adjusted for a corporate spread. If bond yields fall, the
defined benefit obligation will tend to increase.
Life expectancy and investment risk: The pension fund offers
the choice between a lifelong pension and a cash lump-sum
upon retirement. The pension fund has defined rates for
354
converting the lump-sum to a pension and there is the risk that
the members live longer than implied by these conversion rates
and that the pension assets don’t achieve the investment return
implied by these conversion rates.
Asset volatility: A proportion of the pension fund is held in
equities, which is expected to outperform corporate bonds
in the long term but give exposure to volatility and risk in the
short term. The pension fund board of insurer is responsible
for the investment strategy and equity allocation is justified
given the long-term investment horizon of the pension fund
and the objective to provide a reasonable long term return on
members’ account balances.
The sensitivity of significant assumptions used for valuation of
defined benefit obligation is as follows :
Impact from
Discount rate
Weighted average rate of increase
in compensation levels
(In ₹ crore)
As at March 31, 2023
Gratuity
Pension
1% point
increase /
decrease
0.5% point
increase /
decrease
94
85
40
5
Sensitivity to significant actuarial assumptions is computed
by varying one actuarial assumption used for the valuation of
the defined benefit obligation and keeping all other actuarial
assumptions constant. In practice, this is not probable, and
changes in some of the assumptions may be correlated.
The Group expects to contribute ₹219 crore to gratuity and
₹40 crore to pension during the fiscal 2024.
The maturity profile of defined benefit obligation is as follows :
Particulars
Within 1 year
1-2 years
2-3 years
3-4 years
4-5 years
5-10 years
(In ₹ crore)
Gratuity
Pension
274
278
277
309
389
58
55
61
59
64
1,953
322
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.
Infosys Integrated Annual Report 2022-23 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, 2023 and
March 31, 2022 is as follows :
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
Employer contribution
Employee contribution
Benefits paid
Fair value of plan assets at the end
Net liability
(In ₹ crore)
As at March 31,
2023
2022
9,304
814
1,689
625
(82)
(1,823)
10,527
8,287
656
1,153
516
118
(1,426)
9,304
(186)
837
1,689
(1,823)
10,184
(343)
18
666
1,153
(1,426)
9,058
(246)
The amounts for the years ended March 31, 2023 and
March 31, 2022 recognized in the Consolidated Statement of
Other Comprehensive Income are as follows :
Particulars
Remeasurements of the net defined
benefit liability / (asset)
Actuarial (gains) / losses
(Return) / loss on plan assets,
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)
(In ₹ crore)
Year ended March 31,
2023
2022
(82)
186
118
(18)
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)
As at March 31,
2023
7.10%
2022
6.50%
Expected rate of return on plan assets
8.15%
7.70%
Remaining term to maturity of
portfolio
Expected guaranteed interest rate
6 years
8.15%
6 years
8.10%
(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, 2023 and March 31, 2022 are as follows :
Central and state government bonds
Public sector undertakings and
Private sector bonds
Others
(In %)
As at March 31,
2023
2022
60
33
7
57
37
6
The asset allocation for plan assets is determined based on the
investment criteria prescribed under the relevant regulations.
The actuarial valuation of PF liability exposes the Group to
interest rate risk. The defined benefit obligation calculated uses a
discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.
As at March 31, 2023, the defined benefit obligation would
be affected by approximately ₹48 crore and ₹97 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Group contributed ₹1,193 crore and ₹882 crore to the
provident fund during the years ended March 31, 2023 and
March 31, 2022, 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.
9,058
609
8,140
507
Particulars
104
100
2.22.3 Superannuation
The Group contributed ₹487 crore and ₹364 crore during the
years ended March 31, 2023 and March 31, 2022, respectively and
the same has been recognized in the Consolidated Statement of
Profit and Loss under the head employee benefit expense.
355
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
2.22.4 Employee benefit costs
(In ₹ crore)
2.24 Contingent liabilities and commitments
Accounting policy
Particulars
Year ended March 31,
Salaries and bonus (1)
Defined contribution plans
Defined benefit plans
2023
76,365
627
1,367
2022
62,483
478
1,025
78,359
63,986
(1)
Includes employee stock compensation expense of ₹519 crore and ₹415
crore for the years ended March 31, 2023 and March 31, 2022, respectively.
2.23 Reconciliation of basic and diluted shares used in
computing earnings per equity 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,
2023
2022
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
₹6,539 crore (₹6,006 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,
2023
2022
4,762
4,641
959
92
1,245
28
* Uncalled capital pertaining to investments
(1) As at March 31, 2023 and March 31, 2022, claims against the Group not
acknowledged as debts in respect of income tax matters amounted to
₹4,062 crore and ₹4,001 crore, respectively.
The claims against the Group primarily 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, and payments made to Associated Enterprises held as
liable for withholding of taxes. These matters are pending before various
Income Tax 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
₹6,528 crore and ₹5,996 crore as at March 31, 2023 and March 31, 2022,
respectively.
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
418,08,97,857
420,95,46,724
(2) Capital contracts primarily comprise commitments for infrastructure
68,33,213
89,78,410
418,77,31,070
421,85,25,134
facilities and computer equipments.
Legal proceedings
The Group is subject to legal proceedings and claims, which
have arisen in the ordinary course of business. The Group’s
management reasonably expects that these legal actions, when
ultimately concluded and determined, will not have a material
and adverse effect on the Group’s results of operations or
financial condition.
For the years ended March 31, 2023 and March 31, 2022, there
were 9,960 and Nil options to purchase equity shares which had
an anti-dilutive effect.
356
Infosys Integrated Annual Report 2022-23
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)(26)
Infosys Chile SpA (1)
Infosys Arabia Limited (2)(26)
Infosys Consulting Ltda. (1)
Infosys Luxembourg S.a.r.l (1)
Infosys Americas Inc. (Infosys Americas) (1)(26)
Infosys Public Services, Inc. USA (Infosys Public Services) (1)
Infosys Canada Public Services Inc (19)(35)
Infosys BPM Limited (1)(43)
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)(34)
Czech Republic
Infosys Consulting (Shanghai) Co., Ltd. (4)(30)
Infy Consulting Company Ltd (4)
Infy Consulting B.V. (4)
Infosys Consulting S.R.L. (45)
Infosys Consulting (Belgium) NV (4)
Panaya Inc. (Panaya) (1)
Panaya Ltd. (6)
Infosys Financial Services GmbH. (formerly Panaya GmbH) (54)
Brilliant Basics Holdings Limited (Brilliant Basics) (1)(26)
Brilliant Basics Limited (7)(26)
Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (1)
Infosys Middle East FZ LLC (8)
China
UK
The Netherlands
Argentina
Belgium
US
Israel
Germany
UK
UK
Singapore
Dubai
Country
Holdings as at March 31,
2023
2022
(In %)
China
Mexico
Sweden
China
US
India
Austria
India
Chile
Saudi Arabia
Brazil
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
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
357
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
Name of subsidiaries
Fluido Oy (8)
Fluido Sweden AB (Extero) (11)
Fluido Norway A/S (11)
Fluido Denmark A/S (11)
Fluido Slovakia s.r.o (11)
Infosys Compaz Pte. Ltd (9)
Infosys South Africa (Pty.) Ltd (8)
WongDoody Holding Company Inc. (WongDoody) (1)(36)
WDW Communications, Inc (10)(37)
WongDoody, Inc (10)(38)
HIPUS Co., Ltd (9)
Stater N.V. (9)
Stater Nederland B.V. (12)
Stater XXL B.V. (12)
HypoCasso B.V. (12)
Stater Participations B.V. (12)
Stater Belgium N.V./S.A. (13)
Stater Gmbh (12)(28)
Outbox systems Inc. dba Simplus (US) (15)
Simplus North America Inc. (16)(27)
Simplus ANZ Pty. Ltd. (16)
Simplus Australia Pty. Ltd (17)
Sqware Peg Digital Pty. Ltd (18)(31)
Simplus Philippines, Inc. (16)
Simplus Europe, Ltd. (16)(29)
Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd) (11)
Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd) (20)
Infosys Limited Bulgaria EOOD (1)
Kaleidoscope Animations, Inc. (15)
Kaleidoscope Prototyping LLC (22)
GuideVision s.r.o. (14)
GuideVision Deutschland GmbH (21)
GuideVision Suomi Oy (21)
GuideVision Magyarország Kft (21)
GuideVision Polska Sp. z.o.o (21)
GuideVision UK Ltd (21)(26)
Blue Acorn iCi Inc (formerly Beringer Commerce Inc) (15)
Beringer Capital Digital Group Inc (15)(41)
Mediotype LLC (23)(41)
Beringer Commerce Holdings LLC (23)(41)
SureSource LLC (24)(39)
Blue Acorn LLC (24)(39)
Simply Commerce LLC (24)(39)
iCiDIGITAL LLC (25)(40)
358
Country
Holdings as at March 31,
2023
2022
Finland
Sweden
Norway
Denmark
Slovakia
Singapore
South Africa
US
US
US
Japan
The Netherlands
The Netherlands
The Netherlands
The Netherlands
The Netherlands
Belgium
Germany
US
Canada
Australia
Australia
Australia
Philippines
UK
UK
Ireland
Bulgaria
US
US
Czech Republic
Germany
Finland
Hungary
Poland
UK
US
US
US
US
US
US
US
US
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
81
75
75
75
75
75
75
75
100
–
100
100
–
100
–
100
100
100
100
100
100
100
100
100
100
100
100
–
–
–
–
–
–
–
Infosys Integrated Annual Report 2022-23 Name of subsidiaries
Infosys BPM UK Limited (3)
Infosys Turkey Bilgi Teknolojileri Limited Sirketi (1)
Infosys Germany Holding Gmbh (1)
Infosys Automotive and Mobility GmbH & Co. KG (1)
Infosys Green Forum (1)(32)
Country
Holdings as at March 31,
2023
2022
UK
Turkey
Germany
Germany
India
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.) (33)
Malaysia
Infosys Business Solutions LLC (1)(42)
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (44)
oddity GmbH (46)
oddity (Shanghai) Co., Ltd. (47)
oddity Limited (Taipei) (47)
oddity space GmbH (46)
oddity jungle GmbH (46)
oddity code GmbH (46)
oddity code d.o.o (48)
oddity waves GmbH (46)
oddity group services GmbH (46)
Infosys Public Services Canada Inc. (19)(5)
BASE life science AG (50)
BASE life science GmbH (50)
BASE life science A/S (49)
BASE life science S.A.S (50)
BASE life science Ltd. (50)
BASE life science S.r.l. (50)
Innovisor Inc. (50)
BASE life science Inc. (50)
BASE life science S.L. (50)(51)
Panaya Germany GmbH (6)(52)
Infosys Norway (8)(53)
Qatar
Germany
Germany
China
Taiwan
Germany
Germany
Germany
Serbia
Germany
Germany
Canada
Switzerland
Germany
Denmark
France
UK
Italy
US
US
Spain
Germany
Norway
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
100
–
100
100
100
100
100
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1) Wholly-owned subsidiary of Infosys Limited
(15) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(2) Majority-owned and controlled subsidiary of Infosys Limited
(16) Wholly-owned subsidiary of Outbox Systems Inc.
(3) Wholly-owned subsidiary of Infosys BPM Limited
(17) Wholly-owned subsidiary of Simplus ANZ Pty. Ltd
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
(18) Wholly-owned subsidiary of Simplus Australia Pty. Ltd
(5)
Incorporated on July 8, 2022
(6) Wholly-owned subsidiary of Panaya Inc.
(7) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(8) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.)
(19) Wholly-owned subsidiary of Infosys Public Services, Inc.
(20) Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus U.K.,
Ltd)
(21) Wholly-owned subsidiary of GuideVision s.r.o.
(22) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(9) Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd.
(23) Wholly-owned subsidiary of Blue Acorn iCi Inc
(formerly 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) Majority-owned and controlled subsidiary of Stater Participations B.V.
(14) Wholly-owned subsidiary of Infy Consulting Company Limited
(24) Wholly-owned subsidiary of Beringer Commerce Holdings LLC
(25) Wholly-owned subsidiary of Beringer Capital Digital Group Inc.
(26) Under liquidation
(27) Liquidated effective April 27,2021
(28) Incorporated on August 4, 2021
(29) Liquidated effective July 20, 2021
(30) Liquidated effective September 1, 2021
359
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
(31) Liquidated effective September 2, 2021
(32) Incorporated on August 31, 2021
(33) On December 14, 2021, Infosys Singapore Pte. Ltd (formerly 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.)
(34) Liquidated effective December 16, 2021
(35) Liquidated effective November 23, 2021
(36) Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
Inc, effective December 31, 2021
(37) Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021
(38) Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021
(39) Merged with Beringer Commerce Holdings LLC, effective January 1, 2022
of voting interests in Infosys Germany GmbH (formerly Kristall 247. GmbH
(“Kristall”)).
(45) Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiary
of Infosys Consulting Holding AG) became the majority-owned and
controlled subsidiary of Infosys Limited with effect from April 1, 2022
(46) On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH
(“Kristall”)) (a wholly-owned subsidiary of Infosys Singapore Pte. Ltd
(formerly Infosys Consulting Pte. Ltd.)) acquired 100% of voting interests in
oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity
group services GmbH, oddity code GmbH and oddity GmbH.
(47) Wholly-owned subsidiary of oddity GmbH
(48) Wholly-owned subsidiary of oddity code GmbH.
(49) On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.) (a wholly-owned subsidiary of Infosys Limited)
acquired 100% of voting interests in BASE life science A/S.
(40) Merged with Beringer Capital Digital Group Inc, effective January 1, 2022
(50) Wholly-owned subsidiary of BASE life science A/S
(41) Merged with Blue Acorn iCi Inc, effective January 1, 2022
(42) Incorporated on February 20, 2022
(51) Incorporated on September 6, 2022
(52) Incorporated effective December 15, 2022
(43) On March 17, 2022, Infosys Limited acquired non-controlling interest of
(53) Incorporated effective February 7, 2023.
0.01% of the voting interests in Infosys BPM Limited.
(44) On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting
Pte. Ltd.), a wholly-owned subsidiary of Infosys Limited acquired 100%
(54) Infosys Financial Services GmbH. (formerly Panaya GmbH) became a
wholly-owned subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.) with effect from February 23, 2023.
Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
List of other related party
Particulars
Country Nature of relationship
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
India
India
India
India
India
India
Post-employment benefit plan of Infosys Limited
Post-employment benefit plan of Infosys Limited
Post-employment benefit plan of Infosys Limited
Post-employment benefit plan of Infosys BPM Limited
Post-employment benefit plan of Infosys BPM Limited
Post-employment benefit plan of EdgeVerve Systems Limited
EdgeVerve Systems Limited Employees' Superannuation Fund Trust
India
Post-employment benefit plan of EdgeVerve Systems Limited
Infosys Employees Welfare Trust
Infosys Employee Benefits Trust
Infosys Science Foundation
Infosys Foundation(1) (2)
Infosys Expanded Stock Ownership Trust
India
India
India
India
India
Controlled trust
Controlled trust
Controlled trust
Trust jointly controlled by KMPs
Controlled trust
Refer to Note 2.20 for information on transactions with post-employment benefit plans mentioned above.
(1) Effective January 1, 2022
(2) During the year ended March 31, 2023, the Group contributed ₹354 crore towards CSR. During the quarter ended March 31, 2022, the Group contributed
₹2 crore towards CSR.
360
Infosys Integrated Annual Report 2022-23 List of key management personnel
Executive Officers
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)
Non-whole-time Directors
Nandan M. Nilekani
D. Sundaram (appointed as lead independent director
effective March 23, 2023)
Kiran Mazumdar-Shaw (retired as lead independent director
effective March 22, 2023)
Micheal Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer (appointed as an independent director
effective January 12, 2023)
Transaction with key management personnel
Nilanjan Roy, Chief Financial Officer
Inderpreet Sawhney, Group General Counsel and
Chief Compliance Officer
Shaji Mathew (appointed as Group Head - Human Resources
effective March 22, 2023)
Krishnamurthy Shankar (retired as Group Head - Human
Resources effective March 21, 2023)
Mohit Joshi (resigned as President effective March 11, 2023
and will be on leave till his last date with the Company which
will be June 9, 2023)
Ravi Kumar S (resigned as President effective October 11, 2022)
Company Secretary
A.G.S. Manikantha
The compensation to key management 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,
2023
111
16
127
2022
134
11
145
(1) Total employee stock compensation expense for the years ended March 31, 2023 and March 31, 2022 includes a charge of ₹49 crore and ₹65 crore respectively,
towards key management personnel (Refer to Note 2.12). Stock compensation expense for the year ended March 31, 2023 includes reversal of expense on
account of resignation / retirement of key management personnel.
(2) Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are 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
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Infosys Limited
Indian subsidiaries
Infosys BPM Limited
EdgeVerve Systems Limited
Skava Systems Pvt. Ltd.
Infosys Green Forum
Foreign subsidiaries
80.97
67,745
88.92
23,268
101.90
(268)
88.55
23,000
5.30
1.75
0.10
0.35
4,438
1,467
81
294
3.23
3.55
0.02
0.02
846
930
5
4
7.98
(2.28)
–
–
(20)
6
–
–
3.18
3.60
0.02
0.02
826
936
5
5
361
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Name of entity
Net assets
Share in profit or loss
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Brilliant Basics Holdings
Limited
Brilliant Basics Limited
Blue Acorn iCi Inc
Infosys BPO Americas LLC
Portland Group Pty Ltd
Fluido Denmark A/S
Fluido Oy
Fluido Norway A/S
Fluido Slovakia s.r.o.
Fluido Sweden AB
Infosys Fluido Ireland, Ltd.
Infosys Fluido U.K., 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.
362
0.08
–
0.22
0.05
0.11
–
0.17
0.05
0.01
0.03
–
(0.03)
0.09
–
–
–
–
–
–
0.03
–
–
0.13
–
63
1
187
37
92
–
138
42
6
25
3
(24)
71
(2)
2
2
–
2
2
21
1
1
110
2
–
–
0.20
0.09
0.11
(0.02)
0.06
0.07
–
0.08
0.01
(0.04)
0.06
(0.02)
–
–
–
–
–
0.02
–
(0.01)
(0.03)
–
–
–
54
24
29
(6)
18
18
–
20
3
(10)
16
(6)
1
–
–
–
–
5
–
(3)
(7)
1
0.54
449
0.45
117
0.68
0.14
565
112
(0.37)
0.11
1.20
1,008
0.57
(98)
31
153
(0.04)
(33)
(0.15)
(40)
0.05
(0.01)
0.14
37
(7)
117
0.03
(0.01)
0.06
10
(3)
15
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.21
0.09
0.11
(0.02)
0.07
0.07
–
0.08
0.01
(0.04)
0.06
(0.02)
–
–
–
–
–
0.02
–
(0.01)
(0.03)
–
–
–
54
24
29
(6)
18
18
–
20
3
(10)
16
(6)
1
–
–
–
–
5
–
(3)
(7)
1
0.45
117
(0.38)
0.12
0.59
(98)
31
153
(0.15)
(40)
0.04
(0.01)
0.06
10
(3)
15
Infosys Integrated Annual Report 2022-23 Name of entity
Net assets
Share in profit or loss
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Infosys Consulting AG
Innovisor Inc.
Infosys Consulting GmbH
Infosys Consulting SAS
Infy Consulting Company
Ltd.
Infosys Consulting Holding
AG
Infy Consulting B.V.
BASE life science Inc.
Infosys Consulting S.R.L.
(Romania)
Infosys Singapore Pte
Limited
Infosys Luxembourg S.a.r.l.
Infosys Technologies S. de
R. L. de C. V.
Infosys Nova Holdings LLC
Infosys Poland Sp Z.o.o.
Infosys South Africa (Pty)
Ltd
Infosys Arabia Limited
Infosys Technologies
(Sweden) AB.
Infosys Compaz Pte. Ltd
Infosys Middle East FZ LLC
WongDoody, Inc.
Kaleidoscope Animations
Kaleidoscope Prototyping
Infosys Financial Services
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.
0.16
–
0.10
0.02
0.28
0.61
0.05
–
0.09
(0.61)
0.02
0.55
3.32
0.96
–
–
0.15
0.28
(0.02)
0.38
0.13
0.03
–
0.19
(0.44)
1.40
0.02
(0.02)
0.11
0.11
0.02
0.20
0.77
133
–
89
18
231
507
44
–
76
(514)
14
463
2,773
806
4
4
124
236
(17)
317
105
20
2
163
(370)
1,171
12
(18)
89
91
20
169
641
0.21
–
0.06
0.02
0.15
0.21
0.01
–
0.06
0.60
0.03
0.14
0.10
0.30
–
–
0.12
0.12
(0.01)
0.41
0.06
0.03
–
0.02
0.10
0.95
0.01
0.04
0.13
0.02
0.03
0.15
0.32
62
–
17
4
40
57
5
–
17
161
8
37
25
84
–
–
31
37
(2)
120
22
7
–
5
27
255
3
11
33
6
9
38
83
(4.56)
12
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1.14)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.28
–
0.07
0.02
0.15
0.22
0.02
–
0.07
0.62
0.03
0.14
0.10
0.32
–
–
0.12
0.14
0.00
0.46
0.08
0.03
–
0.02
0.10
0.98
0.01
0.04
0.13
0.02
0.03
0.15
0.32
74
–
17
4
40
57
5
–
17
161
8
37
25
84
–
–
31
37
1
120
22
7
–
5
27
255
3
11
33
6
9
38
83
363
Infosys Integrated Annual Report 2022-23 Consolidated Financial Statements
Name of entity
Net assets
Share in profit or loss
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Stater Participations B.V.
(0.32)
(265)
Stater XXL B.V.
–
–
–
–
–
–
–
–
(0.64)
(535)
(0.84)
(219)
(1.90)
(0.06)
(51)
(0.22)
(58)
–
–
(0.01)
(0.08)
0.02
–
–
0.01
0.01
–
–
0.02
–
–
0.02
0.01
0.02
–
0.03
–
–
–
–
–
–
3
–
(10)
(67)
20
4
1
5
10
2
2
20
1
1
14
12
16
(1)
25
1
1
(1)
1
(3)
–
(0.12)
–
(0.03)
(0.16)
–
–
–
–
(0.02)
–
–
0.03
–
–
0.02
–
–
–
(0.06)
–
–
–
–
–
–
(31)
–
(7)
(43)
–
1
1
(1)
(5)
–
1
12
(1)
–
5
(1)
1
(1)
(17)
1
(1)
–
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(0.82)
(214)
(0.22)
(58)
(0.12)
–
(0.03)
(0.17)
–
–
–
–
(0.02)
–
–
0.05
–
–
0.02
–
–
–
(0.06)
–
–
–
–
–
–
(31)
–
(7)
(43)
–
1
1
(1)
(5)
–
1
12
(1)
–
5
(1)
1
(1)
(17)
1
(1)
–
1
–
–
100.00
83,664
100.00
26,235
100.00
(262)
100.00
25,974
(8,421)
164
75,407
388
75,795
(2,072)
(68)
24,095
13
24,108
765
–
503
11
514
(1,308)
(68)
24,598
24
24,622
Infosys Automotive and
Mobility GmbH & Co. KG
Infosys Turkey Bilgi
Teknolojileri Limited Sirketi
Infosys (Malaysia) SDN.
BHD.
Simplus ANZ Pty Ltd.
Stater GMBH
Infosys Germany GmbH
oddity GmbH
oddity (Shanghai) Co., Ltd.
oddity Limited(Taipei)
oddity space GmbH
oddity jungle GmbH
oddity code GmbH
oddity code d.o.o
oddity waves GmbH
oddity group services
GmbH
Infosys BPM UK Limited
Infosys Business Solutions
LLC
Infosys Public Services
Canada Inc.
BASE life science AG
BASE life science GmbH
BASE life science A/S
BASE life science S.A.S
BASE life science Ltd.
BASE life science S.r.l.
BASE life science S.L.
Panaya Germany GmbH
Infosys Norway
Subtotal
Adjustment arising out of
consolidation
Controlled trusts
Non-controlling Interests
Total
364
Infosys Integrated Annual Report 2022-23
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 (CODM) 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 and China, Infosys Public Services and other enterprises in Public Services.
Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable
to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public services and revenue generated from
customers located in India, Japan and China and other enterprises in Public Services. Allocated expenses of segments include expenses
incurred for rendering services from the Group's offshore software development centers and on-site 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.
Business segments
Years ended March 31, 2023 and March 31, 2022 :
Particulars
Financial
Services (1)
Retail (2)
Communication(3)
Energy,
Utilities,
Resources
and
Services
Manufacturing
Hi-Tech
Life
Sciences (4)
All other
segments (5)
(In ₹ crore)
Total
Revenue
from
operations
Identifiable
operating
expenses
Allocated
expenses
Segment
operating
income
43,763
38,902
21,204
17,734
18,086
15,182
18,539
14,484
19,035
13,336
11,867
10,036
10,085
8,517
4,188
1,46,767
3,450
1,21,641
24,990
22,119
10,892
8,632
7,930
6,469
3,916
2,972
11,101
9,179
3,226
2,631
9,923
7,673
3,461
2,586
12,493
8,457
3,429
2,471
6,959
5,952
1,949
1,589
5,834
4,840
1,685
1,297
2,801
84,993
2,357
69,209
1,048
26,644
926
20,941
10,843
10,314
6,396
6,130
3,759
3,372
5,155
4,225
3,113
2,408
2,959
2,495
2,566
2,380
339
167
35,130
31,491
365
Infosys Integrated Annual Report 2022-23
Consolidated Financial Statements
Particulars
Financial
Services (1)
Retail (2)
Communication(3)
Manufacturing
Hi-Tech
Life
Sciences (4)
All other
segments (5)
Total
Energy,
Utilities,
Resources
and
Services
Unallocable expenses
Other income, net (Refer to Note 2.17)
Finance cost
Profit before tax
Income tax expense
Net profit
Depreciation and amortization expense
Non-cash expenses other than depreciation and amortization
(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
4,225
3,476
2,701
2,295
284
200
33,322
30,110
9,214
7,964
24,108
22,146
4,225
3,476
–
–
(5) Others include operating segments of businesses in India, Japan and China, Infosys Public Services and other enterprises in Public Services
Significant clients
No client individually accounted for more than 10% of the revenues for the years ended March 31, 2023 and March 31, 2022, respectively.
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
366
Note
Year ended March 31,
(In ₹ crore)
2.18
2.19
2023
1,46,767
1,02,353
44,414
6,249
7,260
13,509
30,905
2,701
284
2022
1,21,641
81,998
39,643
5,156
6,472
11,628
28,015
2,295
200
33,322
30,110
Infosys Integrated Annual Report 2022-23
Particulars
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
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 year
Profit attributable to
Owners of the Company
Non-controlling interests
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interests
Note
Year ended March 31,
2023
2022
2.17
2.17
2.22
2.5
2.11
2.5
9,287
(73)
7,811
153
24,108
22,146
8
(7)
1
(7)
776
(256)
513
514
(85)
96
11
(8)
228
(49)
171
182
24,622
22,328
24,095
13
22,110
36
24,108
22,146
24,598
22,293
24
35
24,622
22,328
for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram
Lead Independent Director
Nilanjan Roy
Chief Financial Officer
Salil Parekh
Chief Executive Officer
and Managing Director
Jayesh Sanghrajka
Executive Vice President and
Deputy Chief Financial Officer
Bobby Parikh
Director
A.G.S. Manikantha
Company Secretary
Bengaluru
April 13, 2023
367
Infosys Integrated Annual Report 2022-23
Dear Member,
You are cordially invited to attend the 42nd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) to be held
on Wednesday, June 28, 2023 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 31, 2023
Very truly yours,
Sd/-
Nandan M. Nilekani
Chairman
Enclosures:
1. Notice of the 42nd 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 42nd Annual General Meeting
Notice is hereby given that the 42nd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) will be held on
Wednesday, June 28, 2023, 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, 2023 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 ₹17.5 per equity share for the year ended March 31, 2023.
Item no. 3 – Appointment of Salil Parekh as a director, liable to retire by rotation
To appoint a director in place of Salil Parekh (DIN: 01876159 ), 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. Salil Parekh, Chief Executive Officer and Managing Director, whose office of directorship is liable to retire at the
ensuing AGM, being eligible, seeks reappointment as a director. Based on the performance evaluation and the recommendation of the
Nomination and Remuneration Committee, the Board recommends his reappointment as a director.
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 Salil Parekh (DIN: 01876159) as a director, who is liable
to retire by rotation.
Special business
Item no. 4 - Appointment of Helene Auriol Potier as an Independent Director of the Company
To consider and if thought fit, to pass the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152, 161, Schedule IV and other applicable provisions of the Companies
Act, 2013 (“the Act”) read with the Rules framed thereunder, and applicable provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, (“the LODR Regulations”) [including any statutory modification(s) or re-enactment(s) thereof, for the
time being in force], and Articles of Association of the Company, approval and recommendation of the Nomination and Remuneration
Committee and that of the Board, Helene Auriol Potier (DIN: 10166891), who was appointed as an Additional Director in the capacity of
an Independent Director with effect from May 26, 2023, who meets the criteria for independence under Section 149(6) of the Act and
the Rules made thereunder and Regulation 16(1)(b) of the LODR Regulations and in respect of whom the Company has received a notice
in writing from a member under Section 160 of the Act, be and is hereby appointed as an Independent Director of the Company for a
period of 3 (three) years till May 25, 2026, and that she shall not be liable to retire by rotation.
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 42nd Annual General Meeting
Infosys Limited Item no. 5 – Reappointment of Bobby Parikh 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 applicable provisions of the Companies Act, 2013 (“the
Act”) read with the Rules made thereunder and applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, (“the LODR Regulations”) [including any statutory modification(s) or re-enactment(s) thereof, for the time being in
force], and Articles of Association of the Company, approval and recommendation of the Nomination and Remuneration Committee,
and that of the Board, Bobby Parikh (DIN: 00019437), who holds office as an independent director up to July 14, 2023, be and is hereby
reappointed as an independent director, not liable to retire by rotation, for a second term of 5 (five) years with effect from July 15, 2023
up to July 14, 2028.
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.
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 31, 2023
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
Notes
1. Pursuant to the General Circular No. 10/2022 dated December 28, 2022, issued by the Ministry of Corporate Affairs (MCA) and Circular
SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated January 5, 2023 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 (KMP) 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 from the date of circulation of this Notice up to the date of AGM, i.e. June 28, 2023. 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, 2023, has recommended a final dividend of ₹17.5 per share. The
record date for the purpose of final dividend for fiscal 2023 is June 2, 2023. The final dividend, once approved by the members in the
ensuing AGM, will be paid on July 3, 2023, 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 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 the 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.
Notice of the 42nd Annual General Meeting | 3
Infosys Limited 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 (GOI)
Members not having PAN / valid PAN
20% or as notified by the GOI
* As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein the 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 section 206AB of the Finance Act, 2021.
* As per section 139AA of the IT Act, every person who has been allotted a PAN and who is eligible to obtain Aadhaar, shall be required to link the PAN with
Aadhaar. In case of failure to comply with this, the PAN allotted shall be deemed to be invalid / inoperative and he shall be liable to all consequences under
the IT Act and tax shall be deducted at the higher rates as prescribed under the IT Act.
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 2023-24 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 GOI 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 2023-24 obtained from the revenue or tax authorities of the country of tax
•
residence, duly attested by shareholders
Electronic Form 10F as per notification no. 03/2022 dated July 16, 2022 issued by the Central Board of Direct Tax [Notification can
be read under notification-no-3-2022-systems.pdf (incometaxindia.gov.in)]. Form 10F can be obtained electronically through the
e-filing portal of the income tax website at https://www.incometax.gov.in/iec/foportal
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 (FII) / Foreign Portfolio Investors (FPI), 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 the 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 of a non-resident shareholder or a non-resident FPI / FII, the 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, 2023. 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, 2023, 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, 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 the IEPF as per Section 124 of the Act, read with applicable IEPF rules.
11. In compliance with Section 108 of the Act, read with the corresponding rules, Regulation 44 of the LODR Regulations and in terms
of SEBI circular no. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020, the Company has provided a facility to its members
to exercise their votes electronically through the electronic voting (e-voting) facility provided by the National Securities Depository
4 | Notice of the 42nd Annual General Meeting
Infosys Limited 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., (Membership No. FCS 6374) (CP No. 6519) Practicing Company
Secretaries, as the scrutinizer (“Scrutinizer”) for conducting the e-voting process in a fair and transparent manner.
12. Members holding shares either in physical or dematerialized form, as on cut-off date, i.e. June 21, 2023, may cast their votes
electronically. The e-voting period commences on Friday, June 23, 2023 (9:00 a.m. IST) and ends on Tuesday, June 27, 2023 (5:00 p.m.
IST). The e-voting module will be disabled by NSDL thereafter. Members 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. June 21, 2023. 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 21, 2023, may obtain the login ID
and password by sending a request to 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 21, 2023, may follow steps mentioned in the Notice under ‘Instructions for e-voting’.
15. In compliance with the Circulars, the Integrated Annual Report 2022-23, the Notice of the 42nd 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) (DP).
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 2022-23 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
Process to be followed
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
KFin Technologies Limited, Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad-500 032
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
Update of signature of securities holder
Form ISR-1
Form ISR-2
For nomination as provided in Rule 19(1) of the Companies (Share Capital and Debentures) Rules, 2014
Form SH-13
Declaration to opt out
Cancellation of nomination by the holder(s) (along with ISR-3) / Change of nominee
Form for requesting issue of duplicate certificate and other service requests for shares / debentures /
bonds, etc., held in physical form
Form ISR-3
Form SH-14
Form ISR-4
Demat
Please contact your DP and register your email address and bank account details in your demat account,
as per the process advised by your DP.
17. Members may also note that the Notice of the 42nd AGM and the Integrated Annual Report 2022-23 will also be available on the
Company’s website, https://www.infosys.com/investors/reports-filings.html, 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 42nd Annual General Meeting | 5
Infosys Limited 19. SEBI has mandated the submission of PAN, KYC details and nomination by holders of physical securities by October 1, 2023, and
linking PAN with Aadhaar by June 30, 2023 vide its circular dated March 16, 2023. Shareholders are requested to submit their PAN,
KYC and nomination details to the Company’s RTA, 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 DP.
In case a holder of physical securities fails to furnish PAN and KYC details before October 1, 2023 or link their PAN with Aadhaar
before June 30, 2023, in accordance with the SEBI circular dated March 16, 2023, RTA is 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 RTA / 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 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 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 31, 2023
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
6 | Notice of the 42nd Annual General Meeting
Infosys Limited Explanatory statement
Item no. 4 - Appointment of Helene Auriol Potier as an Independent Director of the Company
Pursuant to Section 161 of the Companies Act, 2013, the Board, on May 26, 2023, appointed Helene Auriol Potier as an Additional Director
in the capacity of Independent Director of the Company for a term of 3 (three) years with effect from May 26, 2023 to May 25, 2026 (both
days inclusive) subject to the approval of the shareholders through a special resolution.
The Company has received the following from Helene:
(i) Consent in writing to act as Director in Form DIR-2 pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors)
Rules, 2014 (“the Appointment Rules”);
(ii) Intimation in Form DIR-8 in terms of the Appointment Rules to the effect that she is not disqualified under sub-section (2) of
Section 164 of the Act;
(iii) A declaration to the effect that she meets the criteria of independence as provided in sub-section (6) of Section 149 of the Act and
under the LODR Regulations;
(iv) Declaration pursuant to BSE Circular No. LIST/COMP/14/2018-19 dated June 20, 2018, and NSE Circular No. NSE/ CML/2018/24
dated June 20, 2018, that she has not been debarred from holding office of a director by virtue of any order passed by SEBI or any
other such authority;
(v) Confirmation that she is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair
or impact her ability to discharge her duties as an Independent Director of the Company;
(vi) A declaration that she is in compliance with Rules 6(1) and 6(2) of the Companies (Appointment and Qualification of Directors)
Rules, 2014, with respect to her registration with the data bank of independent directors maintained by the Indian Institute
of Corporate Affairs.
The Company has received a notice in writing by a member proposing her candidature under Section 160 of the Act.
The Nomination and Remuneration Committee (NRC) had previously finalized the desired attributes for the selection of the independent
director(s). Based on those attributes, the NRC recommended the candidature of Helene Auriol Potier. In the opinion of the Board,
Helene fulfils the conditions for independence specified in the Act, the Rules made thereunder, the LODR Regulations and such
other laws / regulations for the time being in force, to the extent applicable to the Company. The Board noted that Helene’s skills,
background and experience are aligned to the role and capabilities identified by the NRC and that she is eligible for appointment as an
Independent Director.
The Board was satisfied that the appointment of Helene is justified due to the following reasons:
She has global career spanning multiple geographies in digital transformation and in telecommunications industry.
She has extensive experience in Technology, ESG and Corporate Governance in key global markets.
•
•
• Her experience of serving on the diversified boards of various multinational companies.
A copy of the draft letter for the appointment of Helene Auriol Potier as an Independent Director setting out the terms and conditions is
available for electronic inspection by the members during normal business hours on working days up to Wednesday, June 28, 2023.
The resolution seeks the approval of members for the appointment of Helene Auriol Potier as an Independent Director of the Company
for a term of 3 (three) years effective May 26, 2023 to May 25, 2026 (both days inclusive) 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
she shall not be liable to retire by rotation.
In compliance with Section 149 read with Schedule IV to the Act and Regulation 25 of the LODR Regulations, the approval of the
Members is sought for the appointment of Helene Auriol Potier as an Independent Director of the Company, as a special resolution.
No director, KMP or their relatives except Helene, to whom the resolution relates, is interested in or concerned, financially or otherwise, in
passing the proposed resolution set out in item no. 4.
The Board recommends the special resolution as set out in Item no. 4 of this notice for the approval of members.
Notice of the 42nd Annual General Meeting | 7
Infosys Limited Item no. 5 – Reappointment of Bobby Parikh as an independent director
Bobby Parikh was appointed as an independent director of the Company pursuant to Section 149 of the Act, read with the Companies
(Appointment and Qualification of Directors) Rules, 2014 (“the Appointment Rules”) by the Board, effective July 15, 2020, to hold office
up to July 14, 2023. The members at the AGM held on June 19, 2021 had approved the same. He is due for retirement from the first
term as an independent director on July 14, 2023. The Nomination and Remuneration Committee (NRC), after taking into account the
performance evaluation of Bobby Parikh during his first term of 3 (three) 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
5 (five) years. The NRC has considered his diverse skills, leadership capabilities, expertise in governance, finance, risk management, tax
& regulatory advisory, business reorganization, and vast business experience, among others, as being key requirements for this role. In
view of the above, the NRC and the Board are of the view that Bobby Parikh 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 NRC, the Board, recommended the reappointment of Bobby Parikh as an independent director, not
liable to retire by rotation, for a second term of 5 (five) years effective July 15, 2023, to July 14, 2028 (both days inclusive).
As per Section 149 of the Act, an independent director may hold office for two terms up to 5 (five) consecutive years each.
Bobby Parikh fulfills the requirements of an independent director as laid down under Section 149(6) of the Act, and Regulation 16(1)(b) of
the LODR Regulations.
The Company has received notice in writing pursuant to Section 160 of the Act, from a member proposing the reappointment of Bobby
Parikh for the office of independent director under the provisions of Section 149 of the Act. The Company has received all statutory
disclosures / declarations from Bobby Parikh, including
(i) Consent in writing to act as director in Form DIR-2, pursuant to Rule 8 of the Appointment Rules,
(ii) Intimation in Form DIR-8 in terms of the Appointment Rules to the effect that he is not disqualified under sub-section (2) of Section
164 of the Act, and
(iii) A declaration to the effect that he meets the criteria of independence as provided in sub-section (6) of Section 149 of the Act.
In the opinion of the Board and based on its evaluation, Bobby Parikh fulfils the conditions specified in the Act, 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 Bobby Parikh as an Independent Director setting out the terms and conditions is
available for electronic inspection by the members during normal business hours on working days up to Wednesday, June 28, 2023.
The Board considers that the continued association of Bobby Parikh would be of immense benefit to the Company and is desirable to
continue to avail his services as an independent director. The resolution seeks the approval of members for the reappointment of Bobby
Parikh as an independent director of the Company, for a second term of 5 (five) years effective July 15, 2023, to July 14, 2028, (both
days inclusive) 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, KMP or their relatives except Bobby Parikh, 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 special resolution as set out in Item no. 5 of this notice for the approval of members.
8 | Notice of the 42nd 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
Salil Parekh
Chief Executive Officer and Managing Director
Salil is the Chief Executive Officer and Managing Director (CEO &
MD) of Infosys and has been in this role since January 2018. Salil
has successfully led the Company over the last five years.
Salil, as CEO & MD, 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 over 30 years of global experience in the IT
services industry with a strong track record of driving
digital transformation, growth, automation, profitability,
executing business turnarounds, managing successful
acquisitions, and creating value.
Prior to this role, 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 LLP and
is widely credited for bringing scale and value to the Indian
operations of the consultancy firm.
Salil 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: 58 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Strategy, Board service & governance,
Financial, Diversity, Global business, Sales & marketing,
Cybersecurity, Mergers & Acquisitions, Risk management, and
Sustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: 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
approved in Item no. 6 of the 41st Annual General Meeting Notice
read with explanatory statement thereto-https://www.infosys.
com/investors/reports-filings/documents/agm-notice2022.pdf.
Key terms and conditions of appointment: As per the resolution
approved in Item no. 6 of the 41st Annual General Meeting Notice
read with explanatory statement thereto: https://www.infosys.
com/investors/reports-filings/documents/agm-notice2022.pdf .
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 CEO & MD, and
reappointed on July 1, 2022 as CEO & MD. 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 2022-23.
Notice of the 42nd Annual General Meeting | 9
Infosys Limited Helene Auriol Potier
Independent Director
Helene Auriol Potier has built her career in digital technologies
and in the telecommunications industry. A truly global career
spanning multiple geographies, including the United States,
Europe, Africa, and Asia.
She started her career in New York in telecommunications in
1986. In 1990, Helene joined the Canadian mobile technology
company Nortel Networks Corporation where she spent 15 years
and held various senior leadership positions among which were
also Vice President Sales Mobile Division Worldwide and Vice
President Services & Operations EMEA.
In 2005, Helene joined Dell Inc. She was the CEO Africa,
Mediterranean and CEE.
She joined Microsoft Corporation in 2008. During her 10 years
tenure at Microsoft, she served in various senior leadership
capacities including CEO Microsoft Singapore and, Managing
Director Artificial Intelligence Europe.
From November 2018 to December 2020, she was Executive Vice-
President in charge of International Business B2B for Orange.
Helene is often called to speak on the topics of digital
transformation, corporate governance and ESG.
She served as independent director on the boards of US listed
company Mimecast Limited until May 2022, Ispen S.A. until May
2018 and Faiveley Transport S.A. until November 2016.
Age: 60 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Board service & governance,
Financial, Diversity, Global Business, Sales & marketing,
Cybersecurity, Mergers & Acquisitions, Risk management, and
Sustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: Nil
Listed entities (other than the Infosys Group) in which Helene
holds directorship and committee membership: As per the LODR
Regulations, an independent director may hold directorships
in 7 (seven) Indian listed companies. Helene does not hold any
directorships in any Indian listed entities. However, she holds
3 (three) directorships in overseas listed entities. Details of her
directorships are given below:
Board Membership in listed entities
Indian
Nil
Overseas
• Accor S.A.
• Randstad N.V.
• Safran S.A.
Listed entities from which Helene has resigned in the
past three years: Nil
Helene received a Master of Science in Engineering from Telecom
Paris and an Executive MBA from INSEAD.
Shareholding in the Company as on the date of her appointment
i.e., May 26, 2023: Nil
Helene currently serves as independent non-executive director
on the boards of Safran S.A., Accor S.A., Randstad N.V. and Oddo
BHF S.C.A. She chairs the Accor board ESG committee and Oddo
BHF board compensation committee. Helene is also ESG co-chair
and board member at Institut Français des Administrateurs, (IFA),
the French association of corporate directors. She is also a senior
advisor at a leading global private equity firm.
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 Act, 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. The detailed criteria
is available in the Nomination and Remuneration Policy of the
Company. The Policy can be accessed from https://www.infosys.
com/investors/corporate-governance/documents/nomination-
remuneration-policy.pdf.
Key terms and conditions of appointment: As per the
resolution in Item no. 4 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: It is proposed to
appoint Helene as an Independent Director for her first term on
the Board and hence, these details are not applicable.
Skills and capabilities required for the role and the manner
in which Henele meets such requirements: As per the
resolution at Item no. 4 of this Notice, read with the
explanatory statement thereto.
10 | Notice of the 42nd Annual General Meeting
Infosys Limited Bobby Parikh
Independent Director
Bobby Parikh is the Managing Partner of Bobby Parikh Associates,
a boutique firm focused on providing strategic tax and
regulatory advisory services.
than the limit prescribed under the LODR Regulations. Details
of his directorships and committee memberships in listed
entities are given below:
Over the years, Bobby has had extensive experience in advising
clients across a range of industries. India has witnessed
significant deregulation and a progressive transformation of its
policy framework. An area of focus for Bobby has been to work
with businesses, both Indian and multinational, in interpreting
the implications of the deregulation as well as the changes to
India’s policy framework, to help businesses better leverage
opportunities that have become available and to address
challenges that resulted from such changes. He has led teams
that have advised clients in the areas of entry strategy (MNCs
into India and Indian companies into overseas markets), business
model identification, structuring a business presence, mergers,
acquisitions and other business reorganizations.
Bobby’s particular area of focus is providing tax and regulatory
advice in relation to transactions and other forms of business
reorganizations, whether inbound, outbound or wholly
domestic. In this regard, he works extensively with private equity
funds, other institutional investors and owners and managers
of businesses to develop bespoke solutions that optimally
address the commercial objectives underpinning a particular
transaction or a business reorganization. He also works closely
with regulators and policy formulators in providing inputs to
aid in the development of new regulations and policies, and in
assessing the implications and efficacy of these and providing
feedback for action.
Bobby was most recently co-founder of BMR Advisors, a highly
regarded tax and transactions firm which he helped establish
and run for over 12 years. Prior to forming BMR Advisors, Bobby
was the Chief Executive Officer of Ernst & Young in India and held
that responsibility until December 2003. He worked with Arthur
Andersen for over 17 years and was its Country Managing Partner
until the Andersen practice combined with that of Ernst & Young
in June 2002. He led the Financial Services industry practice at
Arthur Andersen and then also at Ernst & Young.
Bobby is a graduate in Commerce from the University of Mumbai
and qualified as a Chartered Accountant from the Indian Institute
of Chartered Accountants of India in 1987.
Age: 59 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Board service & governance, Financial,
Diversity, Global business, Sales & marketing, Mergers &
Acquisitions, Risk management, and Sustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: Nil
Listed entities (other than the Infosys Group) in which
Bobby Parikh holds directorship and committee membership:
As per the LODR Regulations, an independent director may
hold directorships in 7 (seven) listed companies. Bobby holds 3
(three) independent directorships, which is significantly lower
Directorships:
Biocon Limited
Committee memberships
1. Audit Committee*
2. Stakeholders Relationship
Committee
3. Risk Management Committee*
Indostar Capital Finance
Limited
1. Audit Committee*
2. Stakeholders Relationship
Committee
3. Corporate Social Responsibility
Committee
4. Nomination and Remuneration
Committee
5. IT Strategy Committee*
* Chairperson
Listed entities from which Bobby Parikh has resigned in
the past three years:
Name of the company
Aditya Birla Sunlife AMC Limited
Date of cessation
February 2, 2022
Shareholding in the Company as on March 31,
2023: 6,887 equity shares
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 Act, 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. The detailed criteria
is available in the Nomination and Remuneration Policy of the
Company. The Policy can be accessed from https://www.infosys.
com/investors/corporate-governance/documents/nomination-
remuneration-policy.pdf.
Key terms and conditions of appointment: As per the
resolution in 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: Bobby Parikh was
appointed to the Board as an independent director on July
15, 2020. The details of remuneration drawn and number of
meetings attended are provided in the Corporate governance
report section of the Annual Report 2022-23.
Skills and capabilities required for the role and the manner in
which Bobby meets such requirements:
As per the resolution at Item no. 5 of this Notice, read with the
explanatory statement thereto.
Notice of the 42nd Annual General Meeting | 11
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 42nd AGM of the Company will be convened through VC in compliance with the applicable provisions of
the Act, 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 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.
12 | Notice of the 42nd 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 SEBI/HO/CFD/CMD/CIR/P/2020/242 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
Individual shareholders holding securities in
demat mode with NSDL
Login method
I. NSDL IDeAS Facility
If you are already registered for the NSDL IDeAS facility,
1. 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.com/SecureWeb/
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 the NSDL mobile app ‘NSDL SPEED-e’ by
scanning the QR code mentioned below for seamless voting experience.
Notice of the 42nd Annual General Meeting | 13
Infosys Limited
Individual shareholders holding securities in
demat mode with CDSL
Individual shareholders (holding securities
in demat mode) logging in through their
depository participants
1. Users who have opted for the CDSL Easi / Easiest facility can log in using their existing
user id and password. Option will be made available to reach e-voting page without
any further authentication. The users of Easi / Easiest are requested to visit CDSL
website www.cdslindia.com and click on the login icon and New System Myeasi Tab and
then use your existing my easi username and password.
2. Alternatively, the user can directly access the e-voting page by providing demat
account number and PAN from the e-voting link available on www.cdslindia.com home
page. The system will authenticate the user by sending OTP on the registered mobile
and email as recorded in the demat account. After successful authentication, the user
will be able to see the e-voting option where the e-voting is in progress and will also be
able to directly access the system of all e-voting service providers.
3. After successful login, the Easi / Easiest user will be able to see the e-voting option for
eligible companies where the e-voting is in progress as per the information provided
by the Company. On clicking the e-voting option, the user will be able to see e-voting
page of the e-voting service provider for casting your vote during the remote e-voting
period or joining the virtual meeting and voting during the meeting. Additionally, there
are also links provided to access the system of all e-voting service providers, so that the
user can visit the e-voting service providers’ website directly.
If the user is not registered for Easi / Easiest, the option to register is available on the
CDSL website www.cdslindia.com. Click on login and New System Myeasi Tab and then
click on the registration option.
4.
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.
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 022 - 4886 7000 and 022 - 2499 7000
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 the toll-free number 1800 22 55 33
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. 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:
14 | Notice of the 42nd Annual General Meeting
Infosys Limited 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 124041 then your User ID is 124041001***
6. Password details for shareholders other than individual shareholders are given below:
a. If you are already registered for e-voting, then you can use your existing password to log in and cast your vote.
b. If you are using NSDL e-voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated
to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ for the system to prompt you to
change your password.
c. How to retrieve your ‘initial password’?
If your email ID is registered in your demat account or with the Company, your ‘initial password’ is communicated to you on your
email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open
the .pdf file. The password to open the .pdf file is your 8-digit Client ID for your NSDL account, or the last 8 digits of your Client ID
for CDSL account, or Folio Number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.
7.
If you are unable to retrieve or have not received the ‘Initial password’ or have forgotten your password:
a. Click on ‘Forgot User Details / Password?’ (If you hold shares in your demat account with NSDL or CDSL) option available on
www.evoting.nsdl.com.
b. Physical User Reset Password? (If you hold shares in physical mode) option available on www.evoting.nsdl.com.
c. If you are still unable to get the password by the above two options, you can send a request to evoting@nsdl.co.in mentioning
your demat account number / Folio Number, your PAN, your name and your registered address.
d. Members can also use the OTP (One Time Password) based login for casting their vote on the e-voting system of NSDL.
8. After entering your password, tick on “Agree with Terms and Conditions” by selecting on the check box.
9. Now, you will have to click on the ‘Login’ button.
10. After you click on the ‘Login’ button, the homepage of e-voting will open.
Step 2: Cast your vote electronically on NSDL e-voting system
1. After successfully logging in following Step 1, you will be able to see the EVEN of all companies in which you hold shares and whose
voting cycle is in active status.
2. Select the EVEN of Infosys Limited, which is 124041.
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.
Notice of the 42nd Annual General Meeting | 15
Infosys Limited General guidelines for e-voting
1.
2.
3.
4.
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 email 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: 022 - 4886 7000 and 022 - 2499
7000, 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.
Information at a glance
Particulars
Time and date of AGM
Mode
Details
4:00 p.m. IST, Wednesday, June 28, 2023
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/
Friday, June 2, 2023
Monday, July 3, 2023
Information of tax on final dividend 2022-23
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
Name, address and contact details of e-voting service
provider
Wednesday, June 21, 2023
9:00 a.m. IST, Friday, June 23, 2023
5:00 p.m. IST, Tuesday, June 27, 2023
https://www.evoting.nsdl.com/
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: 022 - 4886 7000 and 022 - 2499 7000
Name, address and contact details of Registrar and
Transfer Agent
Contact name:
Shobha Anand
Deputy Vice President
KFin Technologies Limited,
Unit: Infosys Limited, Selenium 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
16 | Notice of the 42nd Annual General Meeting
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 relating to the execution of our business strategy, increased competition for talent,
increase in wages, investments to reskill our employees, hybrid work model, economic uncertainties, technological disruption, complex
and evolving regulatory landscape, including immigration regulation changes, ESG vision, Capital Allocation Policy and expectations
concerning our market position, future operations, margins, profitability, liquidity, capital resources 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 detail in our Form 20-F filed with the U.S. 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 and design by Communication Design Group, Infosys Limited.
© 2023 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.
Infosys Integrated Annual Report 2022-23 www.infosys.com
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