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 4 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 6 Infosys Integrated Annual Report 2022-23 7 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 8 Infosys Integrated Annual Report 2022-23 9 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 10 Infosys Integrated Annual Report 2022-23 11 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 12 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 For an interactive digital experience of the report, visit: https://www.infosys.com/content/dam/infosys-web/en/investors/reports-filings/ annual-report/annual/documents/integrated-annual-report2022-23/index.html 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 l d n a a e Z w e N a i l a r t s u A s u i t i r u a M a c i r f A h t u o S . f d p 3 2 0 2 e c n e s e r p - l l a b o g / s t n e m u c o d / s g n i l i f - s t r o p e r / s r o t s e v n i / m o c . s y s o f n i . w w w / / : s p t t h t i s i v , s n o i t a c o l l l a b o g r u o f o s l i a t e d r o F , e n u P n i e c i f f o t n e m t r a p a l l a m s a n i s n o i t a r e p o s t i n a g e b s y s o f n I . s t n e n i t n o c x i s s s o r c a s e c i f f o e v a h e w , y a d o T . 1 8 9 1 n i , a i d n I 3 2 0 2 , 9 2 y a M f o s a * n a p a J a e r o K h t u o S i a n h C n a w a T i g n o K g n o H s e n p p i i l i h P e r o p a g n S i a i s y a a M l c i l b u p e R h c e z C n e d e w S i a v t a L i a n a u h t i L d n a o P l a i r t s u A a i t a o r C i a n a m o R i a n e m r A i a d n I E A U r a t a Q i a b a r A i d u a S y e k r u T l e a r s I d n a n F l i y a w r o N d n a e r I l K U k r a m n e D s d n a l r e h t e N i m u g e B l g r u o b m e x u L y n a m r e G e c n a r F l a g u t r o P i n e t s n e t h c e i L y l a t I a t l a M y r a g n u H a i k a v o S l i n a p S i a b r e S a i r a g u B l d n a l r e z t i w S o c i R o t r e u P l i z a r B u r e P a n i t n e g r A e l i h C a d a n a C o c i x e M a c i R a t s o C A S U * e c n e s e r p l a b o G l w e i v r e v o e t a r o p r o C s e c i f f o f o . o N 4 7 2 6 5 s e i r t n u o c f o . o N % 8 1 6 . % 7 5 2 . % 9 9 . % 6 2 . 3 2 - 2 2 0 2 a c i r e m A h t r o N s n o i g e R e p o r u E d l r o W e h t f o t s e R a i d n I 19 e t a r e p o e w e r e h w s e i r t n u o C y h p a r g o e g y b e u n e v e 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. 47 Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Delivering value 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. 49 Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Delivering value 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. 50 51 Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 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. 53 Infosys Integrated Annual Report 2022-23Infosys Integrated Annual Report 2022-23 Delivering value 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. 111 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 113 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. 115 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 127 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 159 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. 160 Infosys Integrated Annual Report 2022-23 Statutory reports 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 2022-23 161 1 6 2 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Infosys Integrated Annual Report 2022-23 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 56 218 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 82 Infosys Integrated Annual Report 2022-23 1 6 4 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t % (C / A) 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. 1 6 5 Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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 1 6 6 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 1 6 7 Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 1 6 8 Section B: Management and process disclosures Disclosure question P1 P2 P3 P4 P5 P6 P7 P8 P9 Policy and management processes 1a. Whether your entity’s policy / policies cover each principle and its core elements of the NGRBCs. (Yes / No) 1b. Has the policy been approved by the Board? * (Yes / No) 1c. Web link of the policies, if available 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. 1 6 9 Infosys Integrated Annual Report 2022-23 1 7 0 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Infosys Integrated Annual Report 2022-23 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 15 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 1 None. Infosys Integrated Annual Report 2022-23 1 7 2 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. B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Infosys Integrated Annual Report 2022-23 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 1 7 3 Infosys Integrated Annual Report 2022-23 1 7 4 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. B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Infosys Integrated Annual Report 2022-23 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 1 7 5 Infosys Integrated Annual Report 2022-23 1 7 6 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. B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Yes, the entity has an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016. https://www.infosys.com/careers/discover/culture/documents/diversity-inclusion-policy.pdf 5. Return to work and retention rates of employees that took parental leave. Gender Male Female Permanent employees – fiscal 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 99 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 1 7 7 Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 1 7 8 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) 100 100 Infosys Integrated Annual Report 2022-23 1 8 0 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) B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Yes. 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) 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. 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/. 1 8 1 Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 1 8 2 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 – 1 8 3 Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 1 8 4 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 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. – – – 82 – – – – 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 8 5 There were no significant risks / concerns arising from the assessments. Infosys Integrated Annual Report 2022-23 1 8 6 PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment 1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format Essential indicators Parameter Total electricity consumption (A) Total fuel consumption (B) Energy consumption through other sources (C) Total energy consumption (A+B+C) Energy intensity per rupee of turnover (Total energy consumption / turnover in Rupees) Energy intensity (optional) – the relevant metric may be selected by the entity Fiscal 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. B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Not applicable 3. Provide details of the following disclosures related to water: Parameter (i) Surface water (ii) Groundwater (iii) Third-party water (iv) Seawater / desalinated water (v) Others (rainwater) Total volume of water withdrawal (i + ii + iii + iv + v) Total volume of water consumption Water intensity per rupee of turnover (Water consumed / turnover) Water intensity (optional) – the relevant metric may be selected by the entity Fiscal 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 1 8 7 (1) Scope 2 emissions includes India and overseas owned and leased offices Infosys Integrated Annual Report 2022-23 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 1 8 8 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 10,241.5 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 1 8 9 Infosys Integrated Annual Report 2022-23 1 9 0 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t Infosys Integrated Annual Report 2022-23 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. 1 9 1 Infosys Integrated Annual Report 2022-23 1 9 2 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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. 1 9 3 Infosys Integrated Annual Report 2022-23 1 9 4 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. B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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. 1 9 5 Infosys Integrated Annual Report 2022-23 1 9 6 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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 1 9 7 Infosys Integrated Annual Report 2022-23 1 9 8 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 43 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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 0 0 0 98 0 2 2 100 49 45 S. No 14 15 16 17 18 19 20 21 22 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. 1 9 9 Infosys Integrated Annual Report 2022-23 2 0 0 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 B u s i n e s s R e s p o n s i b i l i t y a n d S u s t a n a b i i l i t y R e p o r t 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’sFramework. • • 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.1 202 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. 207 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. 208 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. • 210 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. 292 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. 295 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