Generative AI and You
Integrated Annual Report 2023-24
Infosys Integrated Annual Report 2023-24
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We barely saw it happen. AI walking into our lives. Through
the ads that follow us on social media. The personalized
pick of movies and shows. Our cars. The maps helping us
navigate. Right there in our hands – our super-powerful
phones. And now, it’s happening again. This time with
generative AI. In the form of handy tools – like ChatGPT,
MetaAI and Stable Diffusion – that pique our imagination,
and stoke our curiosity.
Generative AI technology’s path into enterprises too has
been just as accelerated and enthusiastic, supported by
an exponential increase in investments. While almost
every enterprise has started working with generative
AI, their struggles with data readiness and concerns
around regulatory compliance are just as real. A common
acknowledgment is that very few of the gen AI pilots, when
considered at scale, promise to deliver tangible business
value. In the months to follow, we believe, some ongoing
AI pilots will scale to strategic AI programs that will then
help pave the way for AI-led business transformations.
Our clients, across industries, are looking to solve tough
business challenges with generative AI in ways that
produce measurable outcomes for them. For example,
supporting and personalizing customer interactions,
bringing greater efficiencies to marketing and sales,
improving the quality of code, and even enhancing
personal and organizational productivity. They also clearly
see that the advent of generative AI, with potential for
more pervasive automation, will accelerate the pace of
workforce transformation. Talent, across functions, will
need support to imbibe new skills, and some will even prep
for entirely new jobs that didn’t exist before. Generative AI,
if embraced responsibly, could drive productivity growth
and support a more sustainable, inclusive world.
Embracing AI responsibly also means keeping track of
emerging AI regulations across countries and jurisdictions
while ensuring compliance. Existing processes, policies,
guidelines, and tooling will need to be continuously
reviewed and enhanced to cover model assurance, model
security, bias, fairness, explainability, reproducibility,
training data privacy, safety and alignment, IP/contractual
risks and sustainability impact too. We are factoring
it all in as we engineer enterprise-scale generative AI
developments for our clients. You’ll come across some
examples right here in this Integrated Annual Report. But
what we hope you also won’t miss is to see how you too
can navigate your next as generative AI paves the path
forward for us all, and how Infosys can be the trusted
partner on that journey into the future.
Gen AI: Ushering in the next era of business
Would you like to see yourself on the Infosys Annual report cover? You can do
this now by creating a personalized cover page using our gen AI platform at
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The cover and theme pages images have been created using gen AI tools.
Infosys Integrated Annual Report 2023-24
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Infosys Integrated Annual Report 2023-24
Microsoft Corporation is a technology company that
aspires to empower every person and every organization
on the planet to achieve more.
As a vocal advocate for the game-changing potential
of artificial intelligence, Microsoft was eager to harness
the power of AI, especially generative AI, to heighten
their operational agility. This meant reengineering their
operations analytics platform for better quality, faster
response, and support. The platform is a trusted resource
for several thousand users at Microsoft, offering insights
and transactions support to manage their business
operations across commercial, OEM, and partner channels.
To amplify and transform the platform with generative AI,
Microsoft teamed up with Infosys.
Infosys brought the capabilities of Azure OpenAI Service
and GitHub Copilot to help solve this challenging problem.
They also brought best practices for leveraging generative
AI technologies for code generation and development
support. Infosys used these techniques and started to
reengineer the platform, factoring in user feedback
while simultaneously addressing pitfalls preemptively
and making efficiency projections. The aim was to
transform the platform to meet changing user needs at
a revolutionary rate. The outcome was a whopping 35%
reduction in development effort and a 24% reduction in
test-case generation and code review time. In fact, the
platform was ready to deliver on Microsoft’s operational
aspirations six months ahead of schedule!
The renewed operations platform delivers never-before-
seen on-time, on-demand intelligence for users with
hugely reduced data latency and cost across the 150+
reports of operational insights that the business counts
on. The new generative AI-powered knowledge repository
enables the platform’s support team to provide quicker
responses to queries, resulting in an 18% reduction in
support ticket volume. This newfound agility, along
with the self-service capabilities added to the platform,
has resulted in a sharp increase in internal customer
satisfaction.
Microsoft Corporation: Transforming platform engineering.
Transforming operations
“Successful operations are all about effective support for the business, firmly
grounding the core technology to make that possible, and being able to pivot with
agility to meet changing market needs. Generative AI, Azure OpenAI Service, and
GitHub Copilot, in the hands of capable Infosys engineers, helped us to transform and
modernize our operations analytics platform to be able to meet the demands of our
business while saving time, money, and delighting users with the experience.”
– Jonathan Chromy, Principal SWE Manager, Microsoft
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Danske Bank is a Nordic bank, the largest retail bank in
Denmark, with over 5 million retail customers.
In the summer of 2023, the Bank announced its Forward
’28 strategy to strengthen the organization and create a
more focused business trajectory to exceed its financial
targets. With the maturing of generative AI, Danske Bank
was quick to see its potential to revolutionize their industry
and transform the way their own company operated, to
increase efficiency and productivity, reduce costs, and
open up new opportunities for growth. They were keen
to start to explore a custom GPT indexed with their own
business content to automate repetitive tasks and provide
instant responses to tactical pursuits, freeing up human
staff to focus on more strategic objectives.
Infosys responded with a plan to help Danske Bank
set up an A-team and the appropriate generative AI
technology to build a secure, ethical-by-design chat-
based assistant – DanskeGPT. The intent was to prototype
and scale a solution to accelerate personal productivity,
first in a sandboxed environment for experimentation,
while maintaining an abundance of caution that provides
the guardrails to manage ethical and practical safeguards
for issues like AI hallucinations. Microsoft’s Open AI services
in Azure provided the foundation. From start to pilot, the
solution was ready in about six weeks, and soon scaled for
ethical and safe use for about 3,000 users.
Today, Danske Bank’s entire employee base is harnessing
DanskeGPT’s capabilities to assist them in their everyday
activities – already seeing a 10-15% boost in productivity
in some areas. Team Infosys continues to work, enhancing
DanskeGPT with internal data, to deliver for Danske Bank
new content, and enable new process improvements
through effective ways of employing this flexible assistant.
The team is also helping the Bank to quickly identify the
parts of their business where the technology could have
the most immediate impact. The effort also includes
strategic moves to assemble a cross-functional team,
including data science practitioners, legal experts, and
business leaders, to scale the continued AI-powered
transformation of Danske Bank.
Danske Bank: Scaling assistive technology organization-wide
“We are rapidly building capability to tackle hundreds of AI-powered ideas to
drive productivity across our business units. From better insights and reporting to
identifying risks and vulnerabilities, while improving our customer and company
outcomes, we are prioritizing and delivering services into the bank with support
from Infosys.’’
– Jan den Boer, Head Strategic Sourcing, Senior Vice President, Danske Bank
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Currys is an international omnichannel retailer of
technology products and services, operating online and
across 720 stores in six countries, helping customers enjoy
amazing technology, however they choose to shop.
As the cost-of-living pressures escalated in the UK,
Currys wanted to optimize its sales and service process
for greater efficacy, so it was better able to deliver more
value to its customers. Currys also clearly saw the need
to be as efficient as possible through these efforts so it
could sustain the program, increase productivity, and
share the savings made with its customers. It was quick to
see the advantage to be gained from using AI to execute
on its pricing, personalization, e-commerce and service
strategies.
Currys partnered with Infosys to build an ML- and AI-based
price recommendation engine, co-developing decision-
support capabilities and internal tooling, yielding strong
predictive pricing performance. These recommendations
are driving sustained profitable sales for Currys through
better-adapted and optimized omnichannel pricing. With
e-commerce bringing in 45% of Currys UK&I revenues,
Infosys also simultaneously worked with Currys to develop
an ML- and AI-powered online conversion analytics engine
to unearth insights into customer journeys that impact
conversion.
Currys is now advancing its exploration into the realm of
generative AI. In tandem with Infosys, Currys is undertaking
multiple programs to test and learn:
• Gen AI-powered tools to query and summarize lengthy
product documentation to support internal teams on
their information needs
• A smart repairs and services assistant to guide on simple
fixes, with the potential to reduce false returns and call
volumes
• Sentiment analysis and summarization based on
customer feedback from surveys, to guide identification
of opportunities to improve customer service
experience.
Currys: Driving step-change evolution of sales ROI
“We exist to help everyone enjoy amazing technology. As a tech retailer, it’s in our DNA
to embrace and harness new tech to improve the customer experience and help them
choose, afford and enjoy new tech. With the combination of shared values, a love of
technology and deep expertise in G(AI), Infosys is a natural partner for Currys.”
– Ian Dawson, Global Business Solutions Director, Currys
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Wesco International is a FORTUNE 500® provider of
business-to-business distribution, logistics services and
supply chain solutions.
Wesco embarked on an AI-first digital transformation
journey, two years back, seeking to intelligently transform
their processes harnessing the power of data and best-of-
breed platforms. Infosys, as their digital and AI innovation
partner, helped the business to harvest data to train AI
models, bridge talent gaps, manage integration challenges
with legacy systems, and stay ahead of the evolving
regulatory dynamics of responsible AI.
One of the examples of Wesco’s high-impact deployment
of AI was the amplification of their sales process. Today,
Wesco is seeking to bring gen AI to amplify the process
further by creating highly targeted recommendations
based on insights around customer preferences and
purchase history. Infosys continues to partner with Wesco
as they expand their transformation to include value from
gen AI across business functions.
Wesco International: Making better decisions across functions
“We value our collaboration with Infosys, who has been a key strategic partner for
Wesco, supporting us to scale our digital capabilities.”
– Akash Khurana, Executive Vice President and Chief Information and Digital Officer, Wesco
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LG Electronics is leading the global market in smart home
appliances and consumer electronics.
From a strategic standpoint of the brand, LG Electronics
makes a solid and uncompromising promise to create a
better life for their customers. They articulate it succinctly
– Life’s Good. The company truly understands the power
of harnessing cutting-edge technology to deliver on their
promise. In fact, the company redefined AI as “Affectionate
Intelligence,” with a conviction that AI can foster more
empathetic and attentive customer experience. In fact,
leveraging the company’s vast repository of user data, the
LG AI Brain forecasts customers’ needs based on user-
product interactions and contextual learning.
Having made significant progress on its AI journey, LG
Electronics USA approached Infosys to implement a
reliable and cost-efficient AI solution for automated
consumer insights for digital channel and customer
sentiment analysis that helps to increase digital sales.
Traditionally, businesses grapple with fragmented data
sources and often rely on costly third-party tools for
customer insights. Infosys revolutionized the approach
by creating a unified data architecture to seamlessly
integrate disparate data sources, including CRM systems,
digital marketing platforms, competitor data, social media
platforms, customer feedback channels, and transactional
databases. Leveraging cutting-edge technologies and best
practices, the data fabric solution served as the foundation
for our automated consumer insights initiative.
Infosys then conducted a Proof of Concept (POC) for
customer sentiment analysis, leveraging the capabilities
of our newly implemented data fabric by implementing
a generative AI-powered sentiment analysis solution
on Google Cloud, seamlessly integrating diverse data
sources. This included data from sources such as Bazaar
Voice, Intellytics, VoiceBot, ChatBot, and audio files. The
generative AI solution included Chirp for speech-to-
text conversion and Text Bison for sentiment analysis.
Scalability, efficiency, and compliance with industry
standards for data handling and model operationalization
were seamlessly managed. The solution delivers up to 50%
greater efficiencies with automated consumer insights. The
solution is now planned to be moved into production.
LG Electronics USA, like Infosys, is acutely aware of their
responsibility to deploy AI in an ethical manner. The
company aims to develop AI systems that benefit all users,
promote safe behavior and deliver delight to customers.
LG Electronics: Gaining from automated consumer insights
for increasing digital sales
“Companies, like our own, are already trying to stay ahead by exploiting gen AI
models in order to improve customer experience and harness exponential business
growth. The next step for us will be to differentiate ourselves with the value that
gen AI can deliver along with our own data and systems. There are significant
opportunities for companies that want to push ahead with gen AI and we want
to be recognized as a leader in this space. Infosys with their deep expertise and
investments in gen AI is a natural partner of choice for us to help achieve our goals.’’
– Sujatha Krishnan, Senior Director, Head of Data Solutions, LG Electronics USA
Infosys Integrated Annual Report 2023-24
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Contents
For an interactive digital experience of the report, visit:
https://www.infosys.com/investors/reports-filings/annual-report/annual-reports/
ar-2023-24.html
16
About this report
Corporate overview
18
About Infosys
19
Global presence
20
The Infosys Board of Directors
26
The Infosys leadership team
Performance overview
28
Business highlights
30
Chairman’s message
32
Letter to the Shareholder
34
Awards and recognitions
Approaching value creation
37
Our business context
39
Strategy
40
Value creation model
Delivering value
42
Financial Capital
44
Human Capital
46
Intellectual Capital
48
Natural Capital
50
Manufactured Capital
52
Social and Relationship Capital
Statutory reports
56
Board’s report
68
Annexures to the Board’s report
96
Management’s discussion and analysis
106
Corporate governance report
145
Investor contacts
147
Risk management report
152
Business Responsibility and Sustainability Report
203
CEO and CFO certification
Financial statements
204
Standalone
287
Consolidated
Infosys Integrated Annual Report 2023-24
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About this report
Infosys adopted the Global Reporting Initiative (GRI)
principles to disclose performance on non-financial
aspects of the business 16 years ago and also became the
first IT company to publish sustainability performance
in accordance with the GRI G4 (comprehensive) criteria
in 2014.
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 2023-24 has been
prepared in accordance with the
International Integrated Reporting
Framework, developed by the
International Integrated Reporting
Council (IIRC), the GRI Standard
and the Sustainability Accounting
Standards Board (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 the applicable SEBI Regulations.
An introduction to the report
Auditors’ reports
The Auditors’ Report for fiscal 2024 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 2024 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 with
this Integrated Annual Report.
The Independent Assurance
Statement for our BRSR core
disclosures is available as part of
this Integrated Annual Report.
Additionally, select non-financial
sustainability disclosures in this
Integrated Annual Report are
verified by Deloitte Haskins &
Sells LLP.
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.
Our capitals
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 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.
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.
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.
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.
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 in the hybrid mode
of work. 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 in protecting and preserving
our Natural Capital. We have been at
the forefront of the ESG movement
and became carbon-neutral in 2020,
which was 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.
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 vision and ambitions help to channel all inputs through the
capitals to manifest into the most impactful outputs and outcomes for all stakeholders.
Infosys Integrated Annual Report 2023-24
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Argentina
Brazil
USA
Costa Rica
Canada
Chile
Peru
Mexico
Puerto Rico
Australia
New Zealand
China
Saudi Arabia
UAE
Qatar
Turkey
Israel
India
South Africa
Mauritius
Armenia
Bulgaria
Belgium
Luxembourg
Ireland
UK
Netherlands
Germany
France
Spain
Portugal
Liechtenstein
Hungary
Slovakia
Switzerland
Serbia
Italy
Malta
Denmark
Finland
Sweden
Hong Kong
Taiwan
Philippines
Malaysia
Singapore
Japan
South Korea
Austria
Czech Republic
Poland
Lithuania
Latvia
Croatia
Romania
Norway
About Infosys
Corporate overview
3,17,240
Employees
1,882
Active clients
`1,53,670 cr
Total revenues in fiscal 2024
Even as Infosys first turned carbon
neutral in 2020, which was 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.
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
Our Purpose
To amplify human
potential and create the
next opportunity for
people, businesses and
communities
Revenue by geography
Regions
2023-24
North America
60.1%
Europe
27.6%
Rest of the World
9.8%
India
2.5%
265
No. of offices
56
No. of countries
For details of our global locations, visit
https://www.infosys.com/investors/reports-filings/documents/global-presence2024.pdf
Global presence
Corporate overview
Infosys began its operations in a small apartment office in Pune,
India, in 1981. Today, we have offices across six continents.
Countries where we operate
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 powered by AI
and 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$74.43 billion.
In our journey of over 40 years, we
have catalyzed India’s transformation
into the global destination for
software services talent. We
pioneered the Global Delivery Model
and became the first IT company
from India to be listed on NASDAQ.
On March 11, 2024, Infosys marked 25
years of listing in the US.
Infosys Integrated Annual Report 2023-24
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The Infosys Board of Directors
Corporate overview
Age: 68
Nationality: Indian
Directorship / Committee details
Tenure on Board
Shareholding
Board memberships – Indian listed companies
Date of appointment
Term ending date
Areas of expertise
Board (1)
Committee(2)
Chairperson
2
Nil
Member
4
Nil
6.6 years
4,07,83,162 shares (0.98%)
Infosys Limited: Non-Executive and
Non-Independent Director
August 24, 2017
NA
• 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/
nandan-nilekani.html
(1)
Number of directorships in Indian companies (includes public, private and Section 8)
(2)
Chairperson is also considered a member of the Committee. Committee information includes details of only the audit and the stakeholders relationship committees
across all Indian public companies.
Nandan M. Nilekani
Chairman
Salil Parekh
CEO and MD
D. Sundaram
Lead Independent Director
Nandan M. Nilekani
Chairman and Non-Executive and
Non-Independent Director (Promoter)
Chitra Nayak
Independent Director
Bobby Parikh
Independent Director
Michael Gibbs
Independent Director
Govind Iyer
Independent Director
Helene Auriol Potier
Independent Director
Nitin Paranjpe
Independent Director
As of March 31, 2024
Infosys Integrated Annual Report 2023-24
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Directorship / Committee details
Tenure on Board
Shareholding
Board memberships – Indian listed companies
Date of appointment
Date of reappointment
Term ending date
Areas of expertise
6.2 years
9,59,354 shares (0.02%)
Infosys Limited: Executive Director
January 02, 2018
July 01, 2022
March 31, 2027
• 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
Directorship / Committee details
Tenure on Board
Shareholding
Board memberships – Indian listed companies
Date of reappointment
Date of appointment
Term ending date
Areas of expertise
6.7 years
Nil
Infosys Limited: Independent Director
Crompton Greaves Consumer Electricals Limited:
Independent Director
GlaxoSmithKline Pharmaceuticals Limited:
Independent Director
July 14, 2022
July 14, 2017
July 13, 2027
• 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/
d-sundaram.html
The Infosys Board of Directors
Age: 71
Nationality: Indian
Age: 59
Nationality: Indian
Age: 66
Nationality: American
Tenure on Board
Shareholding
Date of appointment
Date of reappointment
Date of reappointment
Term ending date
5.7 years
Nil
July 13, 2018
July 13, 2021
July 15, 2023
July 12, 2026
Directorship / Committee details
Board memberships – Indian listed
companies
Infosys Limited: Independent Director
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/
michael-gibbs.html
Age: 60
Nationality: Indian
Tenure on Board
Shareholding
Date of appointment
Term ending date
Areas of expertise
3.7 years
6,887 shares (0.00%)
July 15, 2020
July 14, 2028
• Financial
• Diversity
• Global business
• Leadership
• Information Technology
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Read full profile at:
https://www.infosys.com/about/management-profiles/
bobby-parikh.html
Directorship / Committee details
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Biocon Limited: Independent Director
Indostar Capital Finance Limited: Independent Director
Salil Parekh
Chief Executive Officer and Managing Director
D. Sundaram
Lead Independent Director
Michael Gibbs
Independent Director
Bobby Parikh
Independent Director
Board (1)
Committee(2)
Chairperson
Nil
Nil
Member
1
Nil
Board (1)
Committee(2)
Chairperson
2
2
Member
5
5
Board (1)
Committee(2)
Chairperson
Nil
1
Member
1
2
Board (1)
Committee(2)
Chairperson
Nil
4
Member
6
7
As of March 31, 2024
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25
The Infosys Board of Directors
Age: 61
Nationality: American
Age: 61
Nationality: Indian
Tenure on Board
Shareholding
Date of appointment
Term ending date
Areas of expertise
3 years
Nil
March 25, 2021
March 24, 2027
• 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
Directorship / Committee details
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Directorship / Committee details
Tenure on Board
Shareholding
Board memberships – Indian listed companies
Date of appointment
Term ending date
Areas of expertise
1.2 years
Nil
Infosys Limited: Independent Director
January 12, 2023
January 11, 2028
• 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/
govind-iyer.html
Age: 61
Nationality: French
Age: 61
Nationality: British
Tenure on Board
Shareholding
Date of appointment
Term ending date
0.8 years
Nil
May 26, 2023
May 25, 2026
Directorship / Committee details
Board memberships – Indian listed companies
Infosys Limited: Independent Director
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://infosys.com/about/management-profiles/
helene-auriol-potier.html
Tenure on Board
Shareholding
Date of appointment
Term ending date
Areas of expertise
0.3 years
Nil
January 01, 2024
December 31, 2028
• Financial
• Diversity
• Global business
• Leadership
• Board service & governance
• Sales & marketing
• Sustainability & ESG
• Risk management
• Mergers & Acquisitions
Read full profile at:
https://www.infosys.com/about/management-profiles/
nitin-paranjpe.html
Directorship / Committee details
Board memberships – Indian listed companies
Infosys Limited: Independent Director
Hindustan Unilever Limited: Non-executive
Director and Chairperson
Chitra Nayak
Independent Director
Govind Iyer
Independent Director
Helene Auriol Potier
Independent Director
Nitin Paranjpe
Independent Director
Date of reappointment
March 25, 2024
Board (1)
Committee(2)
Chairperson
Nil
Nil
Member
1
1
Board (1)
Committee(2)
Chairperson
Nil
Nil
Member
6
Nil
Board (1)
Committee(2)
Chairperson
Nil
Nil
Member
1
Nil
Board (1)
Committee(2)
Chairperson
1
Nil
Member
2
Nil
(1)
Number of directorships in Indian companies (includes public, private and Section 8)
(2)
Chairperson is also considered a member of the Committee. Committee information includes details of only the audit and the stakeholders relationship committees
across all Indian public companies.
As of March 31, 2024
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27
The Infosys leadership team
Corporate overview
Salil Parekh
Chief Executive Officer and Managing
Director
Anand Swaminathan
Segment Head – Communication,
Media and Technology
Ambeshwar Nath
Industry Head – CPG, Logistics
and Retail
Anant Raghavendra Adya
Service Offering Head
Ashiss Kumar Dash
Segment Head – Energy, Utilities,
Resources and Services
Andrew Groth
Industry Head – Banking and
Financial Services, Healthcare,
Insurance and Life Sciences
Balakrishna D.R.
Head – Global Services
Binod Choudhary
Business Head – IBPM
Hemant Lamba
Head – Strategic Global Sourcing
Anup Kapoor
Chief Operating Officer and Whole
Time Director – IBPM
Deepak Bhalla
Chief Risk Officer & Global Head –
Business Finance and Operations
Planning
Inderpreet Sawhney
Group General Counsel and
Chief Compliance Officer
Arun Kumar H.R.
Head – Business Strategy, Planning
and Operations
Dennis Kantilal Gada
Segment Head – Banking and
Financial Services
Jayachandran Nair
Industry Head – Banking and
Financial Services
Jasmeet Singh
Segment Head – Manufacturing
Jayesh Sanghrajka
Chief Financial Officer
Karmesh Gul Vaswani
Segment Head – CPG, Logistics
and Retail
Martha King
Chief Client Officer
Anantharaman Radhakrishnan
Chief Executive Officer and
Managing Director – IBPM
Nabarun Roy
Group Head – Quality
Sourav S. Banerjee
Industry Head – CPG, Logistics and
Retail
Sushanth Michael Tharappan
Head HR – Infosys Limited
Upendra Kohli
Industry Head – Communications,
Media and Technology
Subhro Mallik
Industry Head – Life Sciences
Tarang Puranik
Service Offering Head
Venkateshwaran
Ananthakrishnan
Industry Head – Healthcare
Thirumala Arohi
Head – Education, Training and
Assessment
Vibhuti Kumar Dubey
Service Offering Head
Nandini S
Group Head – Compensation &
Benefits
Raja Madhusudan Shah
Industry Head – Communications,
Media and Technology
Narayan Vijay Sundaresan
Industry Head – Manufacturing
Mohammed Rafee Tarafdar
Chief Technology Officer,
Global Delivery
Shaji Mathew
Group Head – Human Resources
Umashankar Lakshmipathy
Service Offering Head
Ruchir Budhwar
Industry Head – Manufacturing
Sumit Virmani
Chief Marketing Officer
Satish H.C.
Co-Head of Delivery
Sunil Kumar Dhareshwar
Global Head – Corporate Accounting
& Taxation, Facilities, Infrastructure
and Security
As of May 31, 2024
Dinesh R.
Co-Head of Delivery
Business highlights
Performance overview
Dividend per share(2) (in ₹)
46.0
35.3% growth Y-o-Y
Revenues
₹ 1,53,670 cr
4.7% growth Y-o-Y
1.4% CC growth Y-o-Y
Operating margin
20.7%
Robust operating margin
85% of free cash flow for fiscal 2020 to fiscal 2024 returned to shareholders in line with the
Capital Allocation Policy.
Free cash(4)
₹ 23,865 cr
FCF conversion at 90.9% of net profit
Consolidated cash and
investments(1)
₹ 39,005 cr
Continue to main strong
liquidity position
Return on equity(3)
32.1%
Improved by 0.9% over
the last fiscal
Basic earnings per share
(par value of ₹ 5 each)
63.39
10.0% growth Y-o-Y
Number of US$ 50 million + clients
83
Strong client metrics with increase
of 8 clients Y-o-Y
Large deal TCV
(Total contract value in US$ billion)
17.7
Sustained momentum in large
deal wins continues
Carbon offset programs
2,64,000+
Rural families continue to benefit
In ₹ crore, except per equity share data
FY 2024
FY 2023
FY 2022
FY 2021
FY 2020
Revenues*
1,53,670
1,46,767
1,21,641
1,00,472
90,791
Net profit*#
26,233
24,095
22,110
19,351
16,594
Basic earnings per share (in ₹)*
63.39
57.63
52.52
45.61
38.97
Market capitalization
6,21,821
5,92,394
8,02,162
5,82,880
2,73,214
In US$ million, except per equity share data
FY 2024
FY 2023
FY 2022
FY 2021
FY 2020
Revenues*
18,562
18,212
16,311
13,561
12,780
Net profit*#
3,167
2,981
2,963
2,613
2,331
Basic earnings per share (in ₹)*
0.77
0.71
0.70
0.62
0.55
Market capitalization
74,425
72,351
104,706
79,760
34,966
Notes:
*
Based on IFRS consolidated financial statements
#
Attributable to owners of the Company
Key trends
Note:
(1) Comprise cash and cash equivalents, current and non-current investments excluding investments in equity and preference shares, and others.
(2) Dividend includes special dividend of `8.00 per share.
(3) As per the consolidated financial statements prepared under IFRS
(4) 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.
Women employees
39.3%
Steady progress towards
gender diversity goals
Digital skilling
11.75mn
People are a part of our digital
skilling initiatives
Tech for Good
119 mn +
Lives empowered via our Tech for
Good solutions in e-governance,
education and healthcare
Carbon neutrality
Carbon neutral for
5 years in a row
Scope 1, 2 and 3 emissions
2,50,000+
AI Aware employees
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31
Chairman’s message
Performance overview
We are into the second year of the generative AI
revolution, and some clarity is beginning to emerge from
the noise and babble of the last 18 months. The initial
hyperventilation of AI doomerism and the risk of human
extinction by AI advances like Artificial General Intelligence
(AGI) has quietened down. People have accepted that, like
any other general-purpose technology be it electricity,
nuclear energy, the internet or even a discovery like fire,
gen AI has enormous potential for good when explored
and advanced within the guardrails of responsibility.
Besides, many of the doomsday prophets pleading for
extensive AI regulation have revealed themselves to be just
protectionists who want to limit the fruits of gen AI to a
few companies and investors.
It is also clear that there won’t be a scenario where we’ll
have ‘one model to rule them all’. Every day brings new
advances in large language models from a dizzying set
of actors all pushing for greater innovation. These range
from very large models which need massive computing
infrastructure to small ones that can run locally on the
phone. The real power of AI will come from configuring all
the different models and tools to get the best solutions.
This is not very different from previous generations of
technology. What’s more, the rise of powerful open-source
AI models has accelerated the deployment of AI to solve
tough business and societal challenges. Although there
could be concentration risk in the hardware and cloud
infrastructure space, as we move into actual use cases, a
thousand flowers will bloom.
It is more than evident that enterprise AI will be markedly
different from consumer AI. The manifestations of
consumer AI will be packaged in wondrous ways to make
life easier and more productive for millions of people. New
ways of conducting search; agents that help plan work and
leisure; intuitive interfaces that can serve up what’s needed
and reason with users; even speech recognition that
understands the nuances of dialects and colloquialisms.
Not unlike the smartphone that brought the magic of apps
and touchscreen to billions, consumer AI will push the
envelope of usability, convenience, and accessibility for
everyone.
Enterprise AI, on the other hand, requires a root and
branch surgery of the complex and multigeneration
technology (both legacy and modern), that lie within firms.
The AI models themselves will become commodities. The
challenge will be to orchestrate the extensive data inside
What’s next for the generative AI revolution
the corporation, both structured and unstructured, explicit
and tacit, in a way that it is consumable by AI. The quality of
output needs to be managed to ensure correct and factual
responses and insights with no hallucinations. Given
that the leaderboard of technologies will be changing
at a bewildering pace, enterprises will have to ‘future
proof’ their AI infrastructure with suitable abstractions
to be able to switch models easily and not be trapped in
a technological cul de sac. As various nations come up
with different ways of regulating AI, global companies
will have to build their AI applications in a way that they
are compliant in every country. While application can
be trialled on very large models, deployment will be on
narrow transformers, trained on relevant enterprise data,
fully secure and efficient in their inferencing. Enterprises
will need both an AI foundry for experimentation and an
AI factory for scaling up. AI architecture must facilitate an
approach that combines the analytical thinking of the left
brain with the intuitive approach of the right brain. The
constraint of resources will require a transparent way of
identifying the highest value AI use cases. AI must amplify
the potential of every human being in the enterprise.
Firms in the business of enabling digital transformation,
like Infosys, will be in the eye of the storm. Software
development will be rapidly automated and amplified. We
have to seize the productivity benefits and share them with
our customers. The productivity gains from automation,
must lead to talent redeployment in new areas with new
opportunities. We must learn from applying AI to ourselves,
be it in creating an AI-first enterprise or in accelerating the
massive talent amplification that’s now needed. We are
already doing it, at Infosys, by applying Infosys Topaz to
transform all the services we offer to become AI-first and to
accelerate business value using generative AI technologies.
We are certain that change will have to be embraced – not
resisted.
Above all, the gen AI revolution presents an unrivaled
opportunity. The flux of change as the whole technological
landscape is being reset will create many large openings.
Packaged solutions will be reimagined, and we will see a
resurgence of custom-built solutions that must be enabled
with new types of AI building blocks. The puck is clearly
and quickly moving to a place where the balance of
advantage will be with Infosys.
Bengaluru
Nandan M. Nilekani
May 16, 2024
Chairman
Nandan M. Nilekani
Chairman
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Letter to the Shareholder
Performance overview
Dear shareholder,
Infosys is the leading company in AI and generative
AI today.
We are working on several projects with clients to help
them benefit from generative AI. These projects are in
software engineering, process optimization, customer
support, advisory services, as well as sales and marketing.
They are helping our clients reduce cost, improve service
quality, connect with their customers and drive growth. We
are working with market-leading open access and closed
large language models. Our work in AI and generative AI is
available to our clients using Infosys Topaz.
Enterprise AI is built using the data within enterprises.
Here, our approach of narrow transformers, working
deeply with enterprise data, brings significant benefit to
our clients.
In addition, we have augmented our services with
generative AI and developed playbooks for each of our
offerings. We are among the first IT services companies
globally to achieve ISO 42001:2023 certification, which
is a testament to our commitment to excellence in AI
management. We were ranked as a leader in AI services by
seven out of eight leading analysts.
Infosys Cobalt capabilities for the cloud continue to
resonate with our clients. We work closely with the major
public cloud providers and on private cloud programs for
our clients. Cloud, along with data, is the foundation for AI
and generative AI.
Data within enterprises, from their customer experiences,
from their employee and supplier interactions, becomes
critical foundation for successful generative AI deployment.
Our strength in data, as a result of our digital leadership,
is helping ensure our clients are ready to leverage the
opportunity presented by generative AI.
During the year, our relentless focus on execution enabled
us to deliver growth and operating margin resilience.
We generated US$2.9 billion of free cash flow. We
worked closely with our clients on their cost, efficiency,
automation, and consolidation programs to generate
US$17.7 billion of large deals, the highest we have had
annually, which showcases the relevance of our service
offerings for clients.
Over the past five years, from financial year 2020 to
2024 we have returned 85% of free cash flow to you, our
shareholders, as per our capital allocation policy (the
final dividend of `20 per share and the special dividend
of `8 per share for the financial year 2024 has been
recommended by the Board for shareholder approval)
which is a return of US$2.3 billion to shareholders.
We recruited nearly 11,900 college graduates in the year
and ended the year with over 3,17,000 employees. Our
attrition reduced to 12.6%. We trained over 2,50,000
employees on AI skills. Our focus on gender diversity
continues with about 39% of our workforce consisting of
women employees.
During the year, we were recognized as the only Indian
firm in the top 100 of TIME Magazine’s list of World’s Best
Companies of 2023. We were also recognized as a Top 100
brand globally by Kantar Brand Z and the fastest growing
IT services brand over a 5-year period by Brand Finance.
We remain committed to the communities we live and
operate in. With the work of Infosys Foundation, we
continue to create positive impact in healthcare, education,
sustainability, and women empowerment. The projects we
undertake help to provide equitable support to those most
in need of new opportunities. Our Springboard initiative
continues to help build digital skills by providing free
learning programs to 7.9 million people around the world.
Thanks to our clients for their incredible trust in us and
for helping us become the leading AI-first, cloud-first, and
digital-first company.
Thanks to our 3,17,000 employees for their enormous
contribution to making our clients successful.
Thanks to our Board for their guidance and direction on
our strategic approach.
With changing technology, our clients are keen to leverage
these advances for their customers, operations, and
employees. With our leadership in AI and generative AI,
cloud, and digital, along with our diverse workforce around
the world, we are well-positioned to support our clients
today and in the future.
As I look ahead, I remain optimistic about the changes in
technology and how these can make a positive impact on
the world and our clients.
With my warmest regards,
Sd/-
Bengaluru
Salil Parekh
May 31, 2024
Chief Executive Officer and Managing Director
Salil Parekh
Chief Executive Officer and
Managing Director
Infosys Integrated Annual Report 2023-24
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34
35
ESG
• Recognized as one of
India’s Best Workplaces™ for
Women 2023 (Top 50 Large
Organizations) by the Great
Place to Work™ Institute
• Recognized as one of India’s Best
Employers Among Nation Builders
2023 by the Great Place to Work™
Institute
• Awarded Top Employers Global 2024
certification for the 4th consecutive
year across 20 countries in four
regions: APAC, Middle East, North
America, and Europe
• Infosys has been recognized in
BrandZ’s prestigious Top 100 Most
Valuable Global Brands list, ranked
at #66
• Recognized as the Most Outstanding
Company in India – IT Services
Sector in Asia’s Outstanding
Companies Poll 2023 by Asiamoney.
• Recognized as one of the Most
Honored companies, receiving
multiple awards at the 2023 All-
Asia Executive Team Rankings from
Institutional Investor
• Ranked among Top 3 IT services
brands in the world and the fastest
growing IT services brand over a 5-year
period, by Brand Finance
• Featured in TIME’s World’s Best
Companies 2023 list – Infosys was
among the top 3 global professional
services firms and the only brand from
India in the Top 100 global rankings
• Infosys rated as a leader in ISG’s
Environmental, Social and
Governance Services (ESG) Provider
Lens™ study in US, Europe and Global
• Recognized as a leader in Avasant’s
Tech-enabled Sustainability Services
2023–2024 RadarView™
• Recognized among
2024 World’s Most
Ethical Companies®
by Ethisphere for the fourth
consecutive year
• Infosys Crescent campus in Bengaluru,
India, has been recognized as one of
the ‘100 Iconic Sustainable Buildings’
by The Bureau of Energy Efficiency,
Ministry of Power, Government of India
Business
Business
• Infosys recognized as #1 Top IT Service
Providers in the Nordics in Whitelane
Research and PA Consulting Sourcing
Study 2023
• Infosys held the 11th spot on
Fortune’s “Change the World” list
2023. One of the only two global IT
service organizations, and one of the
two Indian brands to be featured.
Awards and recognitions
Performance overview
• Honored with multiple awards at The
Asset ESG Corporate Awards 2023
– Platinum Award for Excellence, Best
Investor Relations Team, Best initiative
in Environmental Responsibility and
Best Sustainability Team
• Recognized as the Top Employer 2023
in the India Workplace Equality Index
(IWEI) and has won the silver award
three years in a row for LGBT+ inclusion
• Infosys’ Integrated Report, ESG Report
and Foundation Report 2022-23 won
the Platinum award in the 2022 Vision
Awards of the League of American
Communications Professionals (LACP)
• Infosys positioned as a leader in HFS
Horizons for –
- Generative Enterprise Services, 2023
- Assuring the Generative Enterprise™,
2024
• Awarded ISO 42001:2023
certification for implementing an
Artificial Intelligence Management
System framework
• Featured by Constellation
Research in –
- AI-Driven Cognitive Applications
ShortList 2023
- Artificial Intelligence and Machine
Learning Best-of-Breed Platforms
ShortList 2023
AI
• Recognized in the LEADERSHIP
category in the Indian Corporate
Governance Scorecard Assessment
by Institutional Investor Advisory
Services (IiAS) for the eighth year in
a row
• Infosys BPM won the
Best Workplace Diversity
Award, at HR Tech Summit &
Awards 2024
• Ranked among the Top 10 Best
Companies for Women in India in
2023 for the fourth year in a row, and
as the Champion of Inclusion in the
Most Inclusive Companies Index for
the second year in a row, by Avtar and
Seramount
Cloud
Cloud
Industries
• Infosys Finacle and Emirates
NBD awarded ‘Best Digital
Transformation
Implementation’ at the MEA
Finance Leaders Awards 2023
• Infosys positioned as a leader in HFS
Horizons for –
- Manufacturing Intelligent
Operations Services, 2024
- The Best Service Providers for Asset
and Wealth Management
- Retail and CPG Service Providers,
2023
- Cards & Payments Services Providers
2023 report
- Travel, Hospitality, and Logistics
Service Providers, 2023 report
• Infosys Finacle won the MEA Finance
‘Best Composable Banking
Technology Solution
Provider’ award at the MEA Finance
Banking Technology Summit 2023
• Recognized as a leader by Avasant in –
- Retail Digital Services 2024
Radarview™
- Financial Services Digital Services
2023–2024 Radarview™
- Media and Entertainment Digital
Services 2023–2024 Radarview™
- Infosys recognized as a leader by ISG
Provider Lens™ study in –
- Retail & CPG Services reports –
Managed Services in the US and
Europe 2023
• Rated as a leader by Everest Group in –
- Healthcare Payer Digital Services
PEAK Matrix® Assessment 2023
- Retail IT Services PEAK Matrix®
Assessment 2024
- Wealth and Asset Management PEAK
Matrix® Assessment 2023
• Rated as a leader in Innovation Radar
by PAC in –
- Salesforce Related Services in
Europe: The Communications &
Media View
- The Manufacturing View
- The Energy & Utilities View
- The Financial Services View
• Infosys Finacle recognized
as the Best Real Time
Payments Provider at the
MEA Finance Leaders in Payments
Conference & Awards 2023
• Infosys positioned as a leader in IDC
MarketScape for –
- Worldwide Managed Public Cloud
Services 2023 Vendor Assessment
- Asia/Pacific Cloud Professional
Services Vendor Assessment
• Featured by
Constellation Research
in Public Cloud Transformation
Services: Global ShortList 2023
• Recognized as a leader by ISG
Provider Lens™ study in –
- Private Hybrid Cloud - Solutions and
Services 2023 in US and Australia
- Public Cloud report in the US, UK and
Nordics regions
- Multi Public Cloud Services Provider
Lens™ study
• Positioned as a leader in
Gartner® Magic Quadrant™
for –
- Cloud ERP Services for Service-
Centric Enterprises
- Public Cloud IT Transformation
Services
• Rated as a leader by Everest Group
in Cloud Services PEAK Matrix®
Assessment 2023 – North America
• Infosys rated as a leader by
NelsonHall in Adobe Experience
Cloud Services NEAT 2023
Ecosystem
• Infosys positioned as a leader in IDC
MarketScape for –
- Worldwide Finance and Accounting
Business Process Services in the
Cloud Vendor Assessment 2023
- Worldwide Retail Commerce
Platform Service Providers 2023
Vendor Assessment
• Infosys recognized as HPE Global
System Integrator of the Year 2023
and HPE System Integrator of the
Year 2023 for Asia Pacific and Central
Europe
• Infosys received the Salesforce 2023
Partner Innovation Award in the
industry solution awards category
• Infosys won the
2023 Microsoft US Partner of
the Year Award in the Dynamics
365 Services category
• Infosys Finacle and The National Bank
of Greece awarded in the category
‘Best Core Banking Implementation
Europe 2023’ at the Global Finance
Awards
• Infosys positioned as a leader in
Gartner® Magic Quadrant™
for Finance and Accounting Business
Process Outsourcing 2023 IFRS
• Positioned as a
leader in IDC
MarketScape for
Worldwide Artificial Intelligence
Services 2023 Vendor Assessment
• Recognized as a leader by ISG
Provider Lens™ study in Intelligent
Automation - Solutions and Services
Provider in US and Europe
• Rated as a leader by Everest Group in
Application Automation Services PEAK
Matrix® Assessment 2023
• Recognized as the Most Outstanding
Company in India – IT Services Sector
in Asia’s Outstanding Companies Poll
2023 by Asiamoney
• Infosys’ intranet platform, InfyMe, won
the 2023 Intranet Design Annual
Award by Nielsen Norman Group
Infosys Integrated Annual Report 2023-24
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36
Our business context
Approaching value creation
Technology continues to transform
businesses in every industry
around the world in a profound and
fundamental way. In fiscal 2024,
AI, including generative AI, 5G,
Low Code No Code and quantum
computing shaped the future of
industries. From new AI architectures
to precision manufacturing, this
year, we are tackling some of the
hardest challenges across industries.
Responsible business approaches,
including embracing ESG, continue
to gain 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 AI 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 is driving businesses to
build strategic technology and
IT partnerships to realize their
transformation journeys.
We see AI across industries, fine-
tune the necessities of specialized
domains and tasks.
The future of the technology industry
continues to be shaped by the
following trends:
• Focus on generative AI
• Demand for IT services with
growth pockets emerging in areas
like cloud, cybersecurity, IoT and
immersive technologies.
• Focus on cost takeouts to
deal with the uncertain global
environment.
• Increase in enterprise spending
on hybrid, multi-cloud / AI-led
transformation.
• Intense competition for talent as
enterprises embrace new ways
of working amid scarcity of niche
digital skills.
• Continued 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 financial returns; customers
want long-term business value and
innovative solutions; employees are
keen for career opportunities, health
& safety and learning & development,
suppliers look forward to long-
term partnerships; communities
seek improved livelihoods and
access to healthcare and education,
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 2024, various risk
management initiatives were
undertaken to ensure the smooth
delivery of services to our clients,
transparent communication with
all stakeholders, fulfillment of our
social responsibility while ensuring
employee safety and health by
strengthening risk management
program and enhancing the risk
culture. 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.
37
Awards and recognitions
• Infosys positioned as a leader in IDC
MarketScape for –
- Worldwide Supply Chain All Other
Ecosystems Services 2023 Vendor
Assessment
- Worldwide Blockchain Services 2024
Vendor Assessment
- Worldwide Production Management
Service Providers 2023 Vendor
Assessment
- Worldwide Quality Management
Service Providers 2023 Vendor
Assessment
- Worldwide Software Engineering
Services 2023 Vendor Assessment
• Featured by Constellation
Research in –
- Custom Software Development
Services ShortList 2024
- Innovation Services and Engineering
ShortList 2024
- Learning Marketplaces ShortList
2024
- Microsoft End-to-End Service
Providers ShortList 2024
- QA Tools for NextGen Apps ShortList
2024
- Metaverse Design and Services
ShortList 2023
- Customer Experience (CX)
Operations Services: Global ShortList
2023
- Digital Transformation Services
(DTX): Global ShortList 2023
• Positioned as a leader in HFS
Horizons for –
- Low-Code Services, 2023
- Enterprise Blockchain Services, 2023
report
- ServiceNow Services, 2023
- Data modernization services, 2023
• Recognized as a leader by Avasant in –
- SAP S/4HANA Services 2023–2024
Radarview
- Intelligent IT Ops Services 2023-2024
RadarView™
- Nordics Digital Services 2023-2024
RadarView™
- Digital Masters 2023 RadarView™
- Multisourcing Service Integration
2022–2023 Radarview™
• Recognized as a leader by ISG
Provider Lens™ study in –
- SAP Ecosystem in US, UK, Nordics,
Germany and Brazil
- Microsoft Cloud Ecosystem 2023
in US, UK, Singapore and Malaysia,
Australia and Germany
- Digital Engineering Services 2023 in
US and Europe
Digital
For more awards and recognition, visit https://www.infosys.com/about/awards.html
- Cyber Security - Solutions and
Services 2023 in US, US Public
Sector, Australia, and Nordics
regions
• Rated as a leader by Everest Group
in –
- Lending IT Services PEAK Matrix®
Assessment 2023
- Next-generation Quality
Engineering (QE) Services PEAK
Matrix® Assessment 2023
- Net Zero Consulting Services PEAK
Matrix® Assessment 2023
- Cloud Services PEAK Matrix®
Assessment 2023 – North America
- Network Transformation and
Managed Services PEAK Matrix®
Assessment – System Integrators
(SIs) 2023
- Data and Analytics (D&A) Services
PEAK Matrix® Assessment 2023
- Microsoft Dynamics 365 Services
PEAK Matrix® Assessment 2023
- 5G Engineering Services PEAK
Matrix® Assessment 2023
- Unified Communication &
Collaboration (UCC) Specialist
Services PEAK Matrix® Assessment
2024 and ranked #1 in the UCC
rating
- Pega Services PEAK Matrix®
Assessment 2024
- Application Transformation
Services PEAK Matrix® Assessment
2024 – North America & Europe
- Software Product Engineering
Services PEAK Matrix® Assessment
2024
• Rated as a leader by NelsonHall in –
- Advanced Digital Workplace
Services NEAT
- SAP Cloud Migration Services NEAT
2023
- Quality Engineering NEAT 2023
- Cyber Resiliency NEAT 2024
- Salesforce Services 2024 NEAT
• Infosys recognized as 2023
Google Cloud Industry
Solution Services Partner
of the Year – Supply Chain &
Logistics and Google Cloud
Specialization Partner
of the Year for Application
Development
• Infosys recognized as
ServiceNow
Telco Partner of
the Year 2023
• Infosys Finacle along with its
customers, won multiple industry
awards at the Retail Banker
International Asia Trailblazer Awards
2024. These include Infosys Finacle
Mobile Teller awarded for Most
Innovative Branch Offering;
Infosys Finacle and HDFC awarded for
Excellence in Mass Affluent
Banking; Infosys Finacle and
Suryoday Bank awarded for Best
Core Banking System
Initiative
Infosys Integrated Annual Report 2023-24
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38
Key products and platforms
Digital
Core
Experience
Accelerate
Insight
Assure
Innovate
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
Our solutions are classified as digital and core.
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.
Infosys Center for Emerging Technology Solutions focuses on incubation of NextGen
services and offerings by identifying and building technology capabilities to
accelerate innovation.
Center for Emerging
Technology Solutions
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.
Strategy
Approaching value creation
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.
and competitiveness in executing
complex transformation programs.
We have seen the focus on cost take
out and consolidation continuing.
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 hybrid working.
Reskill our people
Continuous learning and reskilling
have always been integral to our
operating model. We operate our
reskilling program with the twin
objectives of increasing fulfillment
of demand for digital skills in
client projects and enriching the
expertise of our global workforce
in next-generation technologies
and methodologies. We invested
in and scaled our digital reskilling
program globally to encompass the
latest courses on generative AI. Over
2,50,000 of our employees today are
AI-aware. Today, our platforms are
also enhanced with generative AI
aspects.
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.
Looking ahead, and to continue
staying relevant to the emerging
needs of our clients, we prioritize:
• Our journey of being AI-first and
our customers’ navigation to AI;
• Continuing to scale our cloud
capabilities, especially in 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 with
a comprehensive plan for margin
expansion;
• Delivering on our ESG
commitments, while at the same
time enabling our clients to realize
their sustainability goals.
Our strategy is to be a navigator for
our clients as they ideate, plan and
execute on their journey to a digital
future.
Our four-pronged strategy continues
to resonate 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 securely in hybrid
working model – giving us the
operational stability to deliver on
client commitments and ensure our
own business continuity.
Over the last few years, we have
executed on this strategy and
generated significant outcomes.
Scale agile digital
Our digital transformation is
today enhanced with AI. We have
reimagined ourselves to be an AI-first
organization. We are rated as a leader
in 60 digital offerings.
Energize the core
In fiscal 2024, we won a total
contract value of over US$17.7
billion in large deals, continuing
to demonstrate our capabilities
Our business context
39
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40
41
Inputs
Process and Strategy
Outputs
Outcomes
Stakeholders
Investors
Clients
Employees
Suppliers
Communities
Government /
Regulators
Environment
Strategy
Governance
Social
Our people and
the strong culture
of innovation
Scale agile digital
Energize the core
Reskill our people
Expand localization
Value creation model
Approaching value creation
Financial Capital
Net assets
`88,116 cr
Consolidated cash and investments
`39,005 cr
Intellectual Capital
AI Aware employees
2,50,000+
Industry-leading products, solutions
and platforms
108
Startups in our innovation ecosystem
305
Human Capital
Total no. of employees
3,17,240
Annual average training hours per employee 74.6
Investments in employee well-being
`1,615 cr
Natural and Manufactured Capital
Highest rated green buildings
29.6 mn sq. ft.
Share of renewables in our India operations 67.52%
Holistic approach to decarbonizing the value chain
Social and Relationship Capital
Global CSR spends
`577 cr
Total no. of active clients
1,882
No. of nearshore / tier-2 locations
27
No. of carbon offset projects
10
Client offerings
Digital
Products
Platforms
Core solutions
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
Go-to-market business units
Financial Capital
Constant currency revenue growth
1.4%
Earnings per share growth
10.0%
Return on equity
32.1%
• Profitable growth
• Sustained / long-term cash flow
Intellectual Capital
Digital leader ratings
60
Artifacts published by the
Infosys Knowledge Institute (IKI)
335
Reports published by IKI
12
Patents in the portfolio
796
• Diversified portfolio of solutions
across industry segments
• Innovation partner to clients
• Partner of choice for social and
environmental solutions for the
community
Human Capital
Fresh graduates hired globally
11,900+
Women in the workforce (39.3%)
1,24,569
• Infosys has been recognized as
a Global Top Employer for the
fourth consecutive year by the Top
Employers Institute.
• Best-in-class employee experience
and learning
• Safe and inclusive workplaces
Natural and Manufactured Capital
Carbon neutral
5th year
Reduction in scope 1 and 2 emissions
over the BAU scenario
60.07%
Large deal engagements including
climate change solutions
>50%
Drive societal change through awareness and advocacy
Social and Relationship Capital
People enabled in digital skills
11.75 mn
New client accounts
385
Employees in nearshore / tier-2 locations
64,240
Rural families continue to benefit from
our carbon offset projects
2,64,000+
• Global leadership: Infosys building
among 100 iconic sustainable
buildings across G20 countries
• Productive, safe and healthy
workplaces for employees
• Environmental stewardship beyond
our boundary
• Positive impact on the communities
in which we operate
• Trusted partner of choice for all
stakeholder groups
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42
43
Financial Capital
Delivering value
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.
Approved the Capital Allocation Policy to return 85% of the free cash flow cumulatively over
a five-year period through a combination of semi-annual dividends and / or share buyback
/ special dividends. The Company expects to progressively increase its annual dividend per
share (excluding special dividend if any).
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
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.
Performance highlights
32.1%
Return On Equity (ROE)
AAA rating
By CRISIL
`50,638 cr
Robust working capital
35.3%
Dividend per share growth(1)
10.0%
EPS growth
4.7%
Revenue growth
20.7%
Operating margin
52.52
57.63
In `
63.39
2022
2023
2024
22,803
20,443
23,865
In ` crore
2022
2023
2024
2022
2023
2024
8,02,162
5,92,394
6,21,821
In ` crore
29.1
31.2
32.1
2022
2023
2024
In %
Basic earnings per share
Dividend per share
Free cash flows
Market capitalization
Return on equity
21.1
20.7
4.7
In %
2022
2023
2024
Revenue growth
31.0
34.0
46.0(1)
2022
2023
2024
In `
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 aims
to deliver superior revenue growth
and operating margins 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.
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
Effective from financial year
2025, the Company expects to
continue its policy of returning
approximately 85% of the free cash
flow cumulatively over a 5-year
period through a combination
of semi-annual dividends and/or
share buyback / special dividends
subject to applicable laws and
requisite approvals, if any. Under
this policy, the Company expects
to progressively increase its annual
dividend per share (excluding special
dividend if any).
Details of our Capital Allocation
Policy are available at
https://www.infosys.com/investors/
corporate-governance/documents/
capital-allocation-policy.pdf.
(1) Dividend includes special dividend of `8.00 per share
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44
45
Human Capital
Delivering value
Material topics
• Employee Value
Proposition
• Employee health
and wellness
• Diversity, Equity
and Inclusion
• Energizing local
communities
UN SDG mapping
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.
Performance highlights
3,17,240
Employees globally
2,50,000+
AI Aware employees
11,900+
Fresh graduates hired globally
80%
Employee satisfaction score
1,130
Employees have voluntarily
disclosed their disability
159
Nationalities in the workforce
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 scores
reached an all-time high of 91%
among employees across locations.
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 2024, we had 1,24,569
women, making 39.3% of the total
workforce.
% of women employees
Employee satisfaction
Employee Value
Proposition
We never cease to reinforce our
Employee Value Proposition (EVP).
Our EVP continues to build on
the three pillars of
Enabling our people with learning
and progress in their careers while
shaping our collective future
Making sure your
career never stands still
Ensuring our people
experience Infosys in a
creative, dynamic, rewarding
and inclusive environment
Navigating further,
together
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
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.
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
2021-22
2022-23
2023-24
39.6
39.4
39.3
75%
82%
80%
2022
2023
2024
Our reimagined listening mechanism
for the new remote way of work
is a periodic feedback mechanism
called Pulse. Pulse collects ongoing
and real-time feedback from
employees anonymously on key
organization-wide themes that shape
an employee’s experience at Infosys
such as work, learning and careers.
Over 1.60L+ employees participated
in fiscal 2024. Employee satisfaction
for fiscal 2024 was recorded at 80%.
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 2024, we
recruited 90% employees locally in
our markets.
Our hybrid work model is about our
people and their comfort. It offers the
flexibility of working from home and
working from office in a hybrid work
model. The model operates according
to different employee contexts: those
in the same city as their office and
those in other locations. As part of
this strategy, we have set up offices
in Visakhapatnam, Noida, Hubballi,
Indore, Navi Mumbai, Nagpur and
Coimbatore in India over the last
few years.
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Intellectual Capital
Delivering value
Material topics
• Innovation and
Intellectual Property
• Products, platforms
and solutions
• Responsible AI
UN SDG mapping
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
“Well known”
Trademark for Infosys in India
Industry leader
Rating for iCETS platforms by analysts
ISO 42001:2023
Certified for AI Management Systems
1,200+
Infosys Knowledge Institute assets
796
Patents owned by Infosys
100+
Client living labs
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/XR, 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. iCETS-led
Center for Emerging
Technology Solutions
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
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.
Accessibility Living Labs
In fiscal 2024, we launched Infosys
Accessibility Living Labs, a unique
learning space to experience digital
accessibility firsthand. Through
simulated interactions and real-world
scenarios, the lab fosters empathy
and awareness of accessibility
challenges, introduces users to
assistive technology and facilitates
the creation of digitally accessible
solutions. The lab also features
Infosys Accessibility Platform, an
AI-first cloud-ready accessibility
and inclusivity solution with a
patented audit tool to identify and
fix accessibility gaps and AI-based
functions to confirm inclusivity.
Living Labs
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 305
startups and these have had over
700 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 is the business research and
thought leadership arm of Infosys.
IKI harnesses the intellectual capital
of Infosys’ subject matter experts
to create 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 over 600 clients
and created over 1,200 assets since
inception. For more information, visit
https://infosys.com/iki.
Product innovation
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 facilitate transformation and
exponential growth. Finacle is our
industry-leading digital banking
solution. Our cloud-native solution
suite and SaaS services help banks
engage, innovate, operate, and
transform better to scale digital
transformation with confidence.
The solutions address core banking,
wealth management, treasury,
analytics, AI, and blockchain etc. for
financial institutions globally. 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, available on
the Infosys Marketplace, are used to
differentiate ourselves in the market
or as productivity-enhancing tools.
We have 796 patents in the portfolio.
Over 861 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 100 most
valuable brands in the world.
WongDoody
WongDoody, a subsidiary of Infosys,
is a global creative digital innovation
agency that has built new practices
and products to support CMO/
CDO/CXO success. These products
include StudioNext, our collaborative
in-house human experience service
model; cutting-edge sustainability IP
in The Climate Game for the Financial
Times; and next-generation AR/
XR capabilities for immersive brand
engagement. WongDoody is also
on the forefront of AI development
for enterprise marketing advantage
with our new AI Studio and Platform
X. Currently in prototype with major
brands, these products combine the
power of AR digital twinning with
AI image generation and hyper-
personalization.
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.
Responsible AI certification
Infosys has become one of the
first companies globally to get ISO
42001:2023 certified. The ISO/IEC
42001:2023 - Artificial intelligence
— Management system certification
is designed for entities providing
or utilizing AI-based products or
services, to ensure responsible
development and use of AI systems.
An Infosys company
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49
Natural Capital
Delivering value
Material topics
• Carbon neutrality
• Renewable energy
• Offsets for community
development
• Advocacy for climate
action
• Water stewardship
• Zero waste to landfill
UN SDG mapping
We believe bold climate action is crucial in addressing one of the most pressing challenges of our time. We hope to
inspire change by demonstrating the benefits of sustainable practices, fostering innovation, and advocating policies
that prioritize the environment while also considering social and economic implications. We believe climate action is
about taking responsibility for our collective future, and working together to create a sustainable and resilient world.
Today, we incorporate environmental considerations into everything we do, as we power
the journey towards a sustainable world for all.
Performance highlights
67.52%
Of electricity for our India operations
comes from renewable sources
29.6 mn sq.ft.
Of highest-level green certified space
100%
Wastewater recycled
within our campuses
8 years
Of CDP climate leadership
2,64,000+
Rural families benefited through
carbon offsets program
Infosys’ climate commitments
• As a part of Infosys 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 initiative (SBTi)
Climate action strategy
We are working diligently towards
this goal and have built our carbon
neutral program on three pillars –
Energy efficiency
To reduce emissions
Renewable energy
To avoid emissions
Carbon offsets
To offset emissions
Carbon neutrality
Infosys is carbon neutral for the fifth
year in a row. As part of our energy
efficiency efforts we continue to
push the envelope when it comes
to creating efficient workplaces,
by ensuring efficient design
and operation of our buildings.
The stringent environmental
performance criteria not only apply
to our own buildings but are also a
prerequisite for leased offices. Today,
we have over 29.6 million sq.ft. of
buildings with the highest level of
green building certification.
Renewable energy
Renewable energy plays a crucial role
in addressing the urgent challenges
of climate change, energy security
and sustainable development. Infosys
was an early mover in renewable
energy, adopting solar PV plants
in our campuses way back in 2009
itself. Today, we have a total capacity
of 60.2 MWp of solar PV across
Infosys campuses, and a large solar
park situated in Sira, about 140 km
from Bengaluru. We have engaged
continuously with many state
governments to enable favorable
Carbon neutral for
5 years in a row
policies and green power through
DISCOMs. Infosys has not purchased
any renewable energy certificates till
date. We get 67.52% of electricity for
our India operations from renewable
sources.
Carbon offsets
Our focus on high social impact
carbon offset projects helps us
to maintain carbon neutrality.
The projects not only benefit the
environment but also improve
health, boost livelihoods, improve
digital literacy, and help in creating
rural jobs. Our unique offset program
is certified to the highest level (Gold
Standard) in terms of social impact,
authenticity, and transparency.
This year, through our biogas
projects, we extended additional
units of biogas to farmers in the
Bagalkote region of Karnataka. We
continued to benefit more than
2,64,000 rural families and created
more than ~3,900 rural jobs through
our 10 running projects in the states
of Maharashtra, Meghalaya and
Rajasthan.
Advocacy for climate action
Infosys published a book
chronicling our efforts in creating
super-efficient buildings, thereby
minimizing environmental impact.
The book titled Pioneering Net
Zero Buildings – The Infosys Journey
(https://www.infosys.com/about/
corporate-responsibility/documents/
pioneering-net-zero-buildings.
pdf) was released on September
11, 2023, by Prof. Amory Lovins,
American writer, energy advisor
physicist and Chairman Emeritus of
the Rocky Mountain Institute. The
unique methodology, disruptive
technologies and new benchmarks
in building design, captured in the
book, are expected to guide and
inspire companies, policymakers,
academia, and other stakeholders in
the industry.
Water stewardship
At Infosys, we understand that water
is essential for life, ecosystems and
economic prosperity. As demand for
water increases due to increasing
population, urbanization and climate
change, it is more crucial than ever
to prioritize responsible water
management. 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. In addition
to the 400 deep recharge wells and
40 lakes across our campuses, we
continue to look for innovative ways
and solutions to reduce our water
demand and use recycled water
more effectively.
Lake rejuvenation
Infosys’ water stewardship efforts
include lake rejuvenation projects
and increasing water holding
capacity of lakes by 10 billion liters in
the next five years. In fiscal 2024, we
rejuvenated five lakes in Bengaluru
enhancing the water holding
capacity by about 5 billion liters, in
collaboration with local partners,
to improve water availability in
the communities in which Infosys
operates. Additionally, the lake
rejuvenation projects created
much-needed lung spaces for the
communities, thereby having a
positive impact on people’s health.
Waste management
Our efforts in waste management
involves implementing strategies
to minimize waste generation,
maximize recovery and promote a
circular economy.
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.
In fiscal 2024, three of our India
campuses in Bengaluru, Chennai
and Pune received True Zero Waste
Platinum certifications from Green
Business Certification Inc. (GBCI).
Decarbonizing our supply
chain
Mitigating climate change requires
timely and decisive action from all
stakeholders. To meet our ambitious
targets on climate, we expect our
suppliers to align with our goals and
join climate action efforts.
As part of our efforts to decarbonize
our supply chain, we identified
suppliers representing a large part
of our capex spend and invested
in training and capacity building
for them. This effort included in-
person training sessions covering
topics including climate change,
importance of disclosures,
maintaining and improving data
capture methodologies, and
emission monitoring and calculation
techniques applicable to the
organization. Apart from this, Infosys
also supported a few suppliers
through one-on-one interactions
and training in this domain. We also
launched a platform for suppliers
to disclose their climate-related
information to help them in
benchmarking and improving their
performance.
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Manufactured Capital
Delivering value
Material topics
• Green buildings / infra /
data center efficiency
• Workplace
transformation
• Green IT
UN SDG mapping
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 future ready workplaces for
employees, clients, partners and contractors.
Performance highlights
68%
Of internal IT application workload
migrated to public cloud
1.55
Weighted average PUE of data centres
Retroshade
Building retrofit shading solution
patented in India
70 kWh/sq.m./p.a.
Building EPI
Radiflux
Radiant cooling solution patented
in Europe and India
Innovative climate
measures
Infosys is a pioneer in implementing
innovative solutions to achieve
reduction in energy and water. From
implementing the first radiant cooled
office building in India in 2010,
constructing the largest prefabricated
office building in India in 2019, to
integrating art and science to design
one of our most efficient buildings
in 2023, we have demonstrated that
innovation is essential to achieve
transformational savings.
Some of our innovative climate
measures to create sustainable
infrastructure include:
• Radiant cooling system, which is
about 50% more efficient than
regular air-conditioning and
ensures healthier spaces too
• Retroshade device, which allows
fully-glazed buildings to adopt
external shading to effectively cut
off direct sun and heat
• Water from air conditioning
systems (condensate), is collected
in a separate tank and utilized in
cooling towers for air conditioning,
saving water and energy.
• Other measures like data-driven
design, use of technology for
design optimization, climate
responsive architecture, use
of systems adapted to local
conditions, high-efficiency
equipment and continuous
monitoring at granular level for
building performance parameters
remotely.
High-performance
green buildings
Our green buildings are a testimony
to our commitment to minimize
impact on the environment even
while building world-class facilities.
We have about 29.6 mn sq.ft. of
the highest level of green building
certification but the differentiator
is that we ensure the building
performance is maintained through
accurate monitoring, thereby making
our buildings truly green.
Workplace transformation
Infosys embarked on workplace
transformation with new design
principles for a reimagined office
catering to the new normal. Our
new design focuses on health and
wellbeing, productivity, social
connect and inclusiveness, while
also ensuring environmental
sustainability.
Additionally, as part of our strategy
to distribute economic growth, tap
into diverse talent pools, contain the
explosive growth of tier 1 cities, and
make it convenient for employees
based in tier 2 and tier 3 cities in
India to come to office, we have
set up offices in Hubballi, Indore,
Nagpur, Coimbatore, Noida and
Visakhapatnam. We also opened
offices in Kolkata and Navi Mumbai
this year.
Green IT
InfosysIT has embedded sustainable
practices across the lifecycles 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 have
been deployed to deliver high-
density server virtualization and
consolidation across the enterprise.
The hyperscale private cloud
platforms provide cloud-scale agility
and enables efficient resource
pooling and utilization. This initiative
has delivered significant power
savings and drastically reduced
the total cost of ownership for the
organization.
InfosysIT has made focused
investment on Data Center
Infrastructure Management (DCIM)
tools to get accurate visibility across
the entire data center IT and facility
stack. DCIM provides environmental
(temperature, humidity, air flow),
power (at the device, rack, zone and
data center level) and cooling data.
This information can be used to alert
the Management when thresholds
are exceeded, reducing repair time
and increasing availability. Data
center standards are revised with a
focus on delivering industry-leading
PUE and will be integrated with DCIM
through Smart PDUs for providing
a unified view of IT and facility
subsystems.
We have modernized our enterprise
storage platform to be energy-
efficient. We provide around 1.8PB
of storage capacity for employees,
projects, and internal requirements
on all flash storage with fabric pool
and storage grid technology.
We introduced Hybrid cloud storage
which is helping us in creating
savings compared to on-premise
data center while providing high
availability.
Infrastructure as code
Infrastructure as code is a
transformational initiative towards
enabling continuous deployment
and 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,
rapid disaster recovery, and the
interdependency between teams.
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 and ML 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, including GPU instances for
AI workloads, empowering full stack
developers to drive AI-first enterprise
initiatives.
Public cloud adoption
Majority of internal IT applications
have been moved to public cloud
infrastructure. All employees have
access to the cloud-based platform
for collaboration like messaging,
presence, video, and other
requirements. Additionally, they now
have cloud-based unified internet
access and secure private access.
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Social and Relationship Capital
Delivering value
Material topics
• Client value
• Inclusive development
• Digital skilling
UN SDG mapping
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
11.75 mn
Learners enabled in digital skills
92
Scientists honored with
the Infosys Prize since 2008
11 mn
Beneficiaries of
CSR projects in India
119 mn +
Lives empowered via
Tech for Good programs
`577 cr
Global CSR spends
90%
Local hiring across geographies
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
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. At Infosys, we have
evolved how we deliver digital
transformations to address our
clients’ challenges, with AI infused to
create additional value.
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 7.9 million learners across
the world 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 has continued
to work in the areas of education,
healthcare, women empowerment
and environmental sustainability,
striving to create the next
opportunity for communities and
individuals. In fiscal 2024, a significant
tie-up in healthcare was with the LV
Prasad Eye Institute in Hyderabad, in
which Infosys’ Tech for Good initiative
developed the unique SightConnect
app that connects healthcare workers,
eye care professionals and patients.
Maternal and child health was
another important area of work
for the Foundation this year, and
related projects with C-CAMP,
Sangath and the Antara Foundation
focused on infrastructure upgrade,
digital support, mental health and
comprehensive connectivity. The
Foundation also focused on digital
skilling and STEM education projects,
especially in rural areas of the country.
In the third edition of the prestigious
Aarohan Social Innovation awards, a
total of `2 crore was awarded to eight
social innovators. Read more about
Aarohan Awards, at
https://www.infosys.com/infosys-
foundation/aarohan-social-
innovation-awards.html.
Read the Infosys Foundation Annual
Reports at
https://www.infosys.com/infosys-
foundation/about/reports.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.
The work of the winners of
the Infosys Prize 2023 tackles
immediate problems like air quality
and pollution, creating effective
medicines with minimum side-
effects, tracing the history of science
in India, and exploring the physics
of life. From 2024, the Prize will be
awarded to scholars who are 40 years
or below in Economics, Engineering
& Computer Science, Humanities
& Social Sciences, Life Sciences,
Mathematical Sciences, and Physical
Sciences. Each Prize carries a gold
medal, a citation and a purse of
US$100,000.
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 (UNGC), 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, our training
focused on capability-building across
suppliers on climate change and CDP
disclosures.
Infosys Foundation USA
In fiscal 2024, 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 1.1 million students and 47,000
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.
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STATUTORY REPORTS
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55
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56
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, 2024. 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
Standalone
Consolidated
For the year ended
March 31,
YoY
growth
(%)
For the year ended
March 31,
YoY
growth
(%)
2024
2023
2024
2023
Revenue from operations
1,28,933
1,24,014
4.0
1,53,670
1,46,767
4.7
Other income, net*
7,417
3,859
92.2
4,711
2,701
74.4
Total income
1,36,350
1,27,873
6.6
1,58,381
1,49,468
6.0
Expenses
Cost of sales
89,032
85,762
3.8
1,07,413
1,02,353
4.9
Selling and marketing expenses
5,668
5,018
13.0
6,973
6,249
11.6
General and administration expenses
5,420
5,293
2.4
7,537
7,260
3.8
Total expenses
1,00,120
96,073
4.2
1,21,923
1,15,862
5.2
Profit / loss before finance cost and tax expenses
36,230
31,800
13.9
36,458
33,606
8.5
Finance cost
277
157
76.4
470
284
65.5
Profit before tax
35,953
31,643
13.6
35,988
33,322
8.0
Profit before tax (% of revenue)
27.9
25.5
23.4
22.7
Tax expense*
8,719
8,375
4.1
9,740
9,214
5.7
Profit after tax
27,234
23,268
17.0
26,248
24,108
8.9
Profit after tax (% of revenue)
21.1
18.8
17.1
16.4
Total other comprehensive income / (loss), net of tax
287
(268)
520
514
Total comprehensive income for the year attributable to the owners of
the Company
27,521
23,000
26,754
24,598
Profit attributable to owners of the Company
27,234
23,268
26,233
24,095
Non-controlling interests
–
–
15
13
Earnings per share (EPS)*
Basic
65.62
55.48
18.3
63.39
57.63
10.0
Diluted
65.56
55.42
18.3
63.29
57.54
10.0
1 crore = 10 million
Notes:
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.
*
Includes interest income (pre-tax) of ₹1,933 crore and reversal of net tax provisions amounting to ₹38 crore on account of orders received under Sections 250
and 254 of the Income-tax Act, 1961, from the Income Tax authorities in India for certain assessment years. This has resulted a positive impact on the Basic and
Diluted EPS by ₹4.76 and ₹4.75 on consolidated and standalone basis, respectively, for the year ended March 31, 2024.
Board’s report
Statutory reports
Infosys Integrated Annual Report 2023-24
57
Financial position
(In ` crore, except equity share data)
Particulars
Standalone
Consolidated
As at March 31,
As at March 31,
2024
2023
2024
2023
Net current assets
43,866
24,640
50,638
31,695
Property, plant and equipment (including capital work-in-progress)
11,090
11,931
12,663
13,634
Right-of-use assets
3,303
3,561
6,552
6,882
Goodwill and other intangible assets
211
214
8,700
8,997
Other non-current assets
29,394
33,549
20,467
25,422
Total assets
1,14,950
1,01,337
1,37,814
1,25,816
Non-current lease liabilities
3,088
3,553
6,400
7,057
Other non-current liabilities
3,600
2,597
4,159
3,778
Retained earnings – Opening balance
52,183
55,449
58,957
61,313
Add:
Profit for the year
27,234
23,268
26,233
24,095
Transfer from Special Economic Zone Re-investment Reserve on
utilization
824
1,397
867
1,464
Less:
Impact on adoption of amendment to Ind AS 37,
Provisions, Contingent Liabilities and Contingent Assets
-
(9)
-
(19)
Dividends
(14,733)
(13,675)
(14,692)
(13,632)
Buyback of equity shares (including tax on buyback)
-
(11,096)
-
(11,096)
Transaction cost relating to buyback (net of tax)
-
(5)
-
(5)
Transfer to legal reserve
-
–
(3)
(3)
Amount transferred to capital redemption reserve upon buyback
-
(21)
-
(21)
Transfer to Special Economic Zone Re-investment Reserve
(2,957)
(3,125)
(2,957)
(3,139)
Retained earnings – Closing balance
62,551
52,183
68,405
58,957
Equity share capital
2,075
2,074
2,071
2,069
Other reserves and surplus (1)
16,527
13,752
15,092
12,354
Other comprehensive income
23
(264)
2,548
2,027
Non-controlling interest
-
–
345
388
Total equity
81,176
67,745
88,461
75,795
Total equity and liabilities
1,14,950
1,01,337
1,37,814
1,25,816
(1) Excluding retained earnings
Infosys Integrated Annual Report 2023-24
58
Based on consolidated financial statements
(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
Revenue distribution by geographical segments (in %)
Revenue distribution by business segments (in %)
FS (1)
Retail (2)
COM (3)
EURS (4)
MFG (5)
Hi-Tech (6)
LS (7)
Others (8)
29.8
27.4
14.5
14.7
12.3
11.7
12.6 13.0
12.9
14.5
8.1
8.1
6.9
7.5
2.9
3.1
2024
2023
North America
Europe
Rest of the world
India
61.8
60.1
25.7
27.6
9.9
9.8
2.6
2.5
Board’s report
Infosys Integrated Annual Report 2023-24
59
Capital Allocation Policy
Effective from financial year 2025, the Company expects to
continue its policy of returning approximately 85% of the
free cash flow cumulatively over a five-year period through a
combination of semi-annual dividends and / or share buyback/
special dividends subject to applicable laws and requisite
approvals, if any. Under this policy, the Company expects to
progressively increase its annual dividend per share (excluding
special dividend 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.
During the year ended March 31, 2024, the Company paid
an interim dividend of ₹18 per share and announced a final
dividend of ₹20 per share and special dividend of ₹8 per share,
subject to shareholders’ approval in the ensuing Annual General
Meeting (AGM). Including the final and special dividend declared
above, the Company has returned approximately `88,400 crore,
which is 85% of the cumulative free cash flow for fiscals
2020-2024 through dividends and buybacks, in line with the
Capital Allocation Policy.
The Capital Allocation Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/capital-allocation-policy.pdf.
Liquidity
Our principal sources of liquidity are cash and cash equivalents,
investments and the cash flow that we generate from our
operations. We continue to be debt-free and maintain sufficient
cash to meet our strategic and operational requirements. We
understand that liquidity in the Balance Sheet has to balance
between earning adequate returns and the need to cover
financial and business requirements. Liquidity enables us to be
agile and ready for meeting unforeseen strategic and business
needs and opportunities.
As of March 31, 2024, we had ₹43,866 crore in working capital on
a standalone basis, and ₹50,638 crore on a consolidated basis.
Consolidated cash and investments stand at ₹30,579 crore on a
standalone basis and ₹39,005 crore on a consolidated basis as on
March 31, 2024, as against ₹22,509 crore on a standalone basis,
and ₹31,286 crore on a consolidated basis as on March 31, 2023.
Consolidated cash and investments, on both standalone and
consolidated basis, include deposits with banks 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 and securities 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 the 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.
Infosys Integrated Annual Report 2023-24
60
Capital expenditure on tangible assets
Consolidated
Leases
Consolidated
Standalone
Standalone
`1,761 crore
Infrastructure
Computer equipment
2024
2023
Infrastructure
Computer equipment
Vehicles
Vehicles
Total -
`2,830 crore
Total -
`1,318 crore
`1,510 crore
`2 crore
46.6%
0.1%
53.3%
`829 crore
`931 crore
`1 crore
47.0%
52.9%
0.1%
`1,208 crore
`669 crore
`765 crore
`1,267 crore
`2 crore
`1 crore
48.7%
46.6%
51.2%
53.3%
0.1%
0.1%
`1,435 crore
Infrastructure
Computer equipment
2024
2023
Infrastructure
Computer equipment
Vehicles
Total -
`2,477 crore
Total -
Vehicles
`510 crore
`371 crore
`756 crore
Buildings
Computer equipment
2024
2023
Buildings
Computer equipment
Total -
`881 crore
Total -
`336 crore
`420 crore
44.4%
55.6%
57.9%
42.1%
`847 crore
`8 crore
`2,646 crore
`2,278 crore
Buildings
Computer equipment
2024
2023
Buildings
Computer equipment
Vehicles
Vehicles
Total -
`3,501 crore
Total -
`1,872 crore
`12 crore
82.2%
0.5%
24.2%
0.2%
75.6%
`394 crore
17.3%
Board’s report
Infosys Integrated Annual Report 2023-24
61
Dividend
The Company recommended / declared dividend as under:
Fiscal 2024
Fiscal 2023
Dividend per
share (in `)
Dividend payout
(in ` crore)
Dividend per
share (in `)
Dividend payout
(in ` crore)
Interim dividend
18.00
7,471
16.50
6,943
Final dividend
20.00 (1)
8,302 (1)
17.50
7,260
Special dividend
8.00 (1)
3,320 (1)
–
–
Total dividend
46.00
34.00
Payout ratio (interim, final and special dividend)*
80.0%(2)
69.5%
Note:
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 18, 2024. The payment is subject to the approval of the shareholders at the ensuing AGM
of the Company to be held on June 26, 2024. The record date for the purposes of the final and special dividend will be May 31, 2024 and payment will be made
on July 1, 2024.
(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 85% of the cumulative free cash flow for the years ended March 31, 2020-2024.
Particulars of loans, guarantees or investments
Loans, guarantees and investments covered under Section 186 of
the Companies Act, 2013 ("the Act") 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 the general reserve
on declaration of dividend.
Changes in the nature of business
The Company did not undergo any change in the nature of its
business during the fiscal 2024.
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
The Company did not enter into any contracts, arrangements
or transactions during fiscal 2024 that fall under the scope
of Section 188(1) of the Act. As required under the Act,
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 (“the
Listing Regulations”), the Management’s discussion and analysis is
set out in this Integrated Annual Report.
Risk management report
In terms of the provisions of Section 134 of the Act, the Risk
management report is set out in this Integrated Annual Report.
Board policies
The details of the policies approved and adopted by the
Board as required under the Act 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.
Infosys Integrated Annual Report 2023-24
62
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
‘AI-first’ organizations. Our strategy is to be a navigator for
our clients as they ideate, plan, and execute their journey to
an AI future. For details, refer to the Strategy section of this
Integrated Annual Report.
Organization
Our go-to-market business units and solutions are detailed in the
Operating context section of this Integrated Annual Report.
Infrastructure
There has been a net decrease of 0.23 million sq. ft. of physical
infrastructure space during the year. The total available space as
on March 31, 2024 stands at 56.63 million sq. ft. We have presence
in 56 countries across 265 locations as on March 31, 2024.
The net decline in the square foot area is due to optimization
of real estate space.
Mergers and acquisitions (M&A)
Infosys has a systematic M&A approach aimed to strengthen
its capabilities, deepen industry expertise, and expand
geographical footprint.
During the year ended March 31, 2024, the Group entered into
definitive agreements to acquire:
1.
Danske IT and Support Services India Private Limited
(Danske IT). The acquisition of Danske IT was completed as
on September 1, 2023. Eventually, the name of Danske IT was
changed to Idunn Information Technology Private Limited
effective April 1, 2024.
2.
InSemi Technology Services Private Limited, a
semiconductor design services company headquartered in
India (subject to customary closing adjustments)
Further, the Board at its meeting held on April 18, 2024, approved
the acquisition of in-tech Holding GmbH, a leading provider of
Engineering R&D services headquartered in Germany (subject to
customary closing adjustments).
Subsidiaries
We, along with our subsidiaries, provide consulting, technology,
outsourcing and next-generation digital services. At the
beginning of the year, we had 28 direct subsidiaries and 70
step-down subsidiaries. As on March 31, 2024, we have 28
direct subsidiaries and 63 step-down subsidiaries. Further, the
Company does not have any material subsidiary.
During the year, the Board of Directors reviewed the affairs
of the subsidiaries. In accordance with Section 129(3) of the
Act, 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 2024.
In accordance with Section 136 of the Act, 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.
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.
Resolution hubs
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. In keeping with this goal, we have an
open-door policy. Employees can access different forums to raise
workplace concerns. These include a well-established and robust
grievance resolution mechanism comprising resolution hubs;
Hearing Employees and Resolving (HEAR) for workplace-related
issues and Anti-Sexual Harassment Initiative (ASHI) for sexual
harassment complaints.
Resolution hubs adhere to the principles of natural justice,
ensure confidentiality, and non-retaliation while addressing
concerns. The concerns are handled with utmost sensitivity
and are redressed in a timebound manner. A detailed
investigation is conducted to ensure fairness and provide
an opportunity to present facts and any material evidence
pertaining to the grievance.
Our ASHI initiative has set an industry benchmark, being
ranked first among 350+ companies that participated in
an external survey on the best anti-sexual harassment
initiatives in 2017, 2019-2023.
Infosys has constituted an Internal Committee (IC) in all the
development centres 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
non-governmental organizations 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
Board’s report
Infosys Integrated Annual Report 2023-24
63
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 2,48,297 employees on a standalone basis and
3,17,240 employees on a consolidated basis as of March 31, 2024.
The percentage increase in remuneration, ratio of remuneration
of each director and key managerial personnel (KMP) (as required
under the Act) 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 Act, 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 Act, read
with Rule 5 of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, is provided in a separate
exhibit forming part of this report and is available on the website
of the Company, at https://www.infosys.com/investors/reports-
filings.html#sec. 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 Act, 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 the
Company objectives, and promoting their increased participation
in the growth of the Company.
Infosys Expanded Stock Ownership Program 2019
(“the 2019 Plan”)
On June 22, 2019, pursuant to the approval by the shareholders
at the AGM, the Board was authorized to introduce, offer, issue
and provide share-based incentives to eligible employees of
the Company and its subsidiaries under the 2019 Plan. The
maximum number of shares under the 2019 Plan shall not
exceed 5,00,00,000 equity shares. To implement the 2019
Plan, up to 4,50,00,000 equity shares may be issued by way of
secondary acquisition of shares by the Infosys Expanded Stock
Ownership Trust. The 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-regulations2024.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
Infosys Integrated Annual Report 2023-24
64
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 2024 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.
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 six 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 Act.
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, 2024, the Board
had nine members, consisting of an executive director, a non-
executive and non-independent director and seven independent
directors. Two of the independent directors of the Board are
women. The details of Board and committee composition,
tenure of directors, areas of expertise and other details are
available in the Corporate 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 Act, 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 that he / she meets the criteria of
independence laid down in Section 149(6), Code for independent
directors of the Act and and Regulation 16(1)(b) 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 2024. The
evaluation parameters and the process have been explained in
the Corporate governance report.
Familiarization program for independent directors
All new independent directors inducted into the Board
attend an orientation program. The details of the training and
familiarization program are provided in the Corporate governance
report. Further, at the time of the appointment of an independent
director, the Company issues a formal letter of appointment
outlining his / her role, function, duties and responsibilities. The
format of the letter of appointment is available on our website,
at https://www.infosys.com/investors/corporate-governance/
Documents/appointment-independent-director.pdf.
Directors and Key Managerial Personnel (KMP)
Inductions
The shareholders, at the 42nd AGM held on June 28, 2023,
approved the following:
a. Appointment of Helene Auriol Potier as Independent
Director effective May 26, 2023 for a period of three (3)
years till May 25, 2026.
b. Re-appointment of Bobby Parikh as Independent Director
for a second term of five (5) years effective July 15,
2023 till July 14, 2028.
The shareholders, vide postal ballot concluded on February 20,
2024, approved the following:
a. Appointment of Nitin Paranjpe as Independent Director
effective January 1, 2024, for a term of five (5) years
till December 31, 2028.
b. Re-appointment of Chitra Nayak as Independent Director
effective March 25, 2024 for a second term of three (3) years
till March 24, 2027.
In the opinion of the Board, the Independent Directors
appointed during the year possess requisite integrity, expertise,
experience and proficiency.
Further the Board, at its meeting held on December 11, 2023,
appointed Jayesh Sanghrajka as the Chief Financial Officer and
KMP of the Company effective April 1, 2024.
Board’s report
Infosys Integrated Annual Report 2023-24
65
Retirements and resignations
1. Uri Levine retired as Independent Director effective April 19,
2023 upon completion of his term. The Board placed on record
its sincere appreciation for his contribution to the Company.
2. Nilanjan Roy resigned as the Chief Financial Officer
and KMP of the Company effective March 31, 2024. The
Board placed on record its sincere appreciation for his
contribution to the Company.
Committees of the Board
As on March 31, 2024, the Board had six committees: Audit
Committee, Corporate Social Responsibility Committee,
Nomination and Remuneration Committee, Risk Management
Committee, Stakeholders Relationship Committee and
Environment, Social and Governance (ESG) Committee. All
committees comprise only independent directors, one of whom
is chosen as the chairperson of the committee.
A Cybersecurity Risk Sub-Committee of the Risk Management
Committee has been constituted to assess and enhance
preparedness to mitigate cybersecurity risks.
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.
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, to achieve higher
compliance and its continued sustenance. We are certified
against the Information Security Management System (ISMS)
Standard ISO 27001:2022. Additionally, we have also been
attested on SSAE 18 and ISAE 3402 SOC 1 and SOC 2 by an
independent audit firm.
During the year, our focus on 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.
During the year ended March 31, 2024, Infosys McCamish Systems
(“McCamish”) engaged cybersecurity and other specialists
to assist in its investigation of and response to its November
2023 cybersecurity incident and remediation and restoration
of impacted applications and systems. For further details,
refer to the Risk management report that forms part of the
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.
Annual return
In accordance with the Act, the annual return in the prescribed
format is available at https://www.infosys.com/investors/reports-
filings/documents/annual-returns-2023-24.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 American Depositary
Shares (ADSs) are listed on the New York Stock Exchange (NYSE).
Investor Education and Protection Fund (IEPF)
During the year, the Company transferred the unclaimed
and un-encashed dividends of ₹2,50,32,727. Further, 27,634
corresponding shares on which dividends were unclaimed for
seven consecutive years were transferred.
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 accounts
up to the year, and the corresponding shares, which are liable
to be transferred, are provided in 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 Ltd at einward.
ris@kfintech.com or at their address at KFin Technologies
Ltd, Selenium Tower B, Plot Nos. 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 and the details of
unclaimed dividend and shares 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 Act and guidelines issued by 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.
Infosys Integrated Annual Report 2023-24
66
The directors confirm that:
•
In preparation of the annual accounts for the financial year
ended March 31, 2024, 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 Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
other irregularities.
•
They have prepared the annual accounts on a going concern
basis.
•
They have laid down internal financial controls, which are
adequate and are operating effectively.
•
They have devised proper systems to ensure compliance with
the provisions of all applicable laws, and such systems are
adequate and operating effectively.
5. Audit reports and auditors
Audit reports
The Auditors’ Report for fiscal 2024 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 2024 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 the Listing
Regulations, for fiscal 2024 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 at the AGM, electronically.
Auditors
Statutory auditor
Deloitte Haskins & Sells LLP, Chartered Accountants (Firm
registration number 117366 W/W-100018) 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 Act read with the Companies (Audit and Auditors) Rules, 2014.
Secretarial auditor
Makarand M. Joshi & Co., Company Secretaries, are appointed
as secretarial auditor of the Company for fiscal 2025, as required
under Section 204 of the Act 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
Act are not applicable for the business activities
carried out by the Company.
Reporting of frauds by auditors
During fiscal 2024, the statutory auditor and the secretarial
auditor has not reported any instance of fraud committed in the
Company by its officers or employees.
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, and environmental sustainability.
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.
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.
Environmental, Social and Governance (ESG)
In October 2020, the Company launched its ESG Vision 2030.
Our focus is steadfast on leveraging technology to battle climate
change, water management and waste management. On the
social front, the 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 on April 14, 2021, to oversee
matters related to organization-wide ESG initiatives, priorities,
and leading ESG practices. The ESG Committee reports to the
Board and meets every quarter to review progress on the ESG
ambitions mentioned in our ESG Vision 2030.
Business Responsibility and Sustainability
Report (BRSR)
In accordance with Regulation 34(2)(f) of the Listing Regulations,
the BRSR forms part of this Integrated Annual Report. The report
describes initiatives undertaken by the Company from an
environmental, social and governance perspective. Further, SEBI
vide its circular no. SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122
dated July 12, 2023, updated the format of BRSR to incorporate
BRSR core, a subset of BRSR, indicating specific Key Performance
Indicators (KPIs) under nine ESG attributes, which are subject
to mandatory reasonable assurance by an independent
Board’s report
Infosys Integrated Annual Report 2023-24
67
assurance provider. In accordance with this requirement,
the Company has appointed Deloitte Haskins & Sells LLP as
the assurance provider.
In addition to this, we also publish a comprehensive ESG Report
annually, based on the GRI standard 2021. The ESG Report is
available at https://www.infosys.com/sustainability/documents/
infosys-esg-report-2023-24.pdf. Deloitte Haskins & Sells LLP has
also assured certain select indicators of the ESG report designed
based on GRI standards.
7. Conservation of energy, research and
development, technology absorption, foreign
exchange earnings and outgo
The particulars, as prescribed under Section 134(3)(m) of the Act,
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.
8. Other disclosures and affirmations
Pursuant to the provisions of Companies (Accounts) Rules, 2014,
the Company affirms that for the year ended on March 31, 2024:
a. There were no proceedings, either filed by the Company or
against the Company, pending under the Insolvency and
Bankruptcy Code, 2016, before the National Company Law
Tribunal or any other court.
b. There was no instance of one-time settlement with any bank
or financial institution.
c. Significant and material orders
There were 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.
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, co-operation 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, Delhi, Coimbatore , Gurugram, Hubballi, Hyderabad, Indore, Jaipur, Kolkata, Mangaluru, Mohali, Mumbai, Mysuru,
Nagpur, Noida, Pune, Thiruvananthapuram, Ahmedabad, Guwahati, 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.
for and on behalf of the Board of Directors
Sd/-
Sd/-
Bengaluru
April 18, 2024
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
DIN: 00016304
DIN: 01876159
Infosys Integrated Annual Report 2023-24
68
Annexures to the Board’s Report
Annexure I – Statement containing the salient features of the financial statements of subsidiaries / associate
companies / joint ventures
(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act,2013, read with Rule 5 of the Companies (Accounts) Rules, 2014 - AOC -1)
(In ₹ crore, except % of shareholding and exchange rate)
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
1
Infosys BPM
Limited (2)
India
Mar 31,
2024
NA
INR
34
3,323
5,324
1,967
1,334
7,892
1,045
246
799
100
2
Infosys
Automotive and
Mobility GmbH
& Co. KG(2)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
15
(924)
6,595
7,504
–
3,782
(465)
7
(472)
100
3
Infosys
McCamish
Systems LLC(3)
US
Dec 31,
2023
Dec 4,
2009
1 USD =
₹83.21
175
1,020 4,591
3,396
–
3,587
144
57
87
100
4
EdgeVerve
Systems Limited
(EdgeVerve)(2)
India
Mar 31,
2024
NA
INR
1,312
(98)
2,064
850
497
3,569
1,176
341
835
100
5
Infosys Public
Services, Inc.
USA (Infosys
Public Services)
(2)
US
Mar 31,
2024
NA
1 USD =
₹83.41
98
1,271 1,926
557
–
2,163
484
140
344
100
6
Infy Consulting
Company
Limited(4)
UK
Mar 31,
2024
NA
1 GBP =
₹105.03
135
119
884
630
–
2,157
97
22
75
100
7
Infosys Poland
Sp. Z.o.o(3)
Poland
Mar 31,
2024
Oct 1,
2007
1 PLN =
₹20.90
4
1,014 1,498
480
114
1,255
170
36
134
100
8
Stater
Nederland B.V.(5)
The
Netherlands
Dec 31,
2023
NA
1 EUR =
₹91.95
8
85
284
191
–
1,226
3
1
2
75
9
WongDoody,
Inc(2)
US
Dec 31,
2023
NA
1 USD =
₹83.21
1
360
492
131
–
1,022
84
13
71
100
10
Infosys
Technologies
(China) Co.
Limited (Infosys
China)(2)
China
Dec 31,
2023
NA
1 RMB =
₹11.67
368
150
926
408
–
1,009
108
5
103
100
Infosys Integrated Annual Report 2023-24
69
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
11
Blue Acorn iCi
Inc (6)
US
Dec 31,
2023
Oct 27,
2020
1 USD =
₹83.21
6
247
316
63
–
730
92
15
77
100
12
Infosys Compaz
PTE Ltd(7)
Singapore
Mar 31,
2024
Nov 16,
2018
1 SGD =
₹61.74
13
196
445
236
–
700
80
14
66
60
13
Infosys
Consulting AG(4)
Switzerland
Dec 31,
2023
NA
1 CHF =
₹99.02
1
244
485
240
–
696
188
33
155
100
14
Outbox systems
Inc. dba
Simplus (US)(6)
US
Jan 31,
2024
Mar 13,
2020
1 USD =
₹83.05
263
(157)
250
144
–
684
18
10
8
100
15
Infosys
Technologies
S. de R. L. de
C. V. (Infosys
Mexico)(2)
Mexico
Dec 31,
2023
NA
1 MXN =
₹4.90
65
474
760
221
–
618
57
14
43
100
16
Infosys
Consulting
GmbH(4)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
17
106
231
108
–
578
66
14
52
100
17
Infosys (Czech
Republic)
Limited s.r.o.(3)
Czech
Republic
Mar 31,
2024
NA
1 CZK =
₹3.57
3
105
282
174
–
482
4
–
4
100
18
Infosys
Technologies
(Shanghai)
Company
Limited (Infosys
Shanghai)(2)
China
Dec 31,
2023
NA
1 RMB =
₹11.67
1,004
(512)
846
354
–
428
(94)
–
(94)
100
19
Infosys
Consulting
Ltda.(2)
Brazil
Dec 31,
2023
NA
1 BRL =
₹17.13
421
(287)
327
193
–
419
29
2
27
100
20
Infosys
Consulting
S.R.L.(2)(8)
Romania
Dec 31,
2023
NA
1 RON =
₹18.52
17
83
194
94
–
387
33
4
29
100
21
HIPUS Co., Ltd (7) Japan
Mar 31,
2024
Apr 01,
2019
1 JPY =
₹0.55
32
96 1,446
1,318
–
361
46
15
31
81
22
Kaleidoscope
Animations
Inc (6)
US
Dec 31,
2023
Oct 9,
2020
1 USD =
₹83.21
–
144
181
37
–
358
46
2
44
100
Infosys Integrated Annual Report 2023-24
70
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
23
Portland Group
Pty Ltd (3)
Australia
Mar 31,
2024
Jan 4,
2012
1 AUD =
₹54.11
18
32
265
215
–
350
18
5
13
100
24
Panaya Ltd.(9)
Israel
Dec 31,
2023
NA
1 USD =
₹83.21
256
(604)
89
437
–
342
33
–
33
100
25
Fluido Oy(10)
Finland
Dec 31,
2023
Oct 11,
2018
1 EUR =
₹91.95
5
124
236
107
–
333
(4)
1
(5)
100
26
Infosys
Technologies
(Sweden)
AB (Infosys
Sweden)(2)
Sweden
Dec 31,
2023
NA
1 SEK =
₹8.29
2
166
265
97
–
293
54
12
42
100
27
Infosys
Management
Consulting Pty.
Limited(4)
Australia
Dec 31,
2023
NA
1 AUD =
₹56.62
17
34
91
40
–
276
20
6
14
100
28
BASE life
science
A/S(10)(11)
Denmark
Jun 30,
2023
Sep 1,
2022
1 DKK =
₹11.95
1
(14)
143
156
–
228
(72)
(16)
(56)
100
29
Stater Belgium
N.V./S.A.(5)(12)
Belgium
Dec 31,
2023
NA
1 EUR =
₹91.95
54
46
156
56
–
218
16
5
11
75
30
GuideVision,
s.r.o.(13)
Czech
Republic
Dec 31,
2023
Oct 1,
2020
1 CZK =
₹3.72
–
101
161
60
–
213
43
9
34
100
31
Infosys
Luxembourg
S.a.r.l(2)
Luxembourg Mar 31,
2024
NA
1 EUR =
₹89.88
26
12
82
44
–
190
20
5
15
100
32
Stater N.V.(7)
The
Netherlands
Dec 31,
2023
May 23,
2019
1 EUR =
₹91.95
38
373
784
373
–
186
81
(1)
82
75
33
Infosys
Singapore Pte.
Ltd.(2)
Singapore
Dec 31,
2023
NA
1 SGD =
₹63
2,886
80 4,710
1,744
–
173
51
30
21
100
34
Infosys
(Malaysia) Sdn
Bhd.(10)
Malaysia
Mar 31,
2024
Dec 14,
2021
1 MYR =
₹17.62
29
(14)
58
43
–
163
10
(3)
13
100
35
WongDoody
GmbH (formerly
oddity Gmbh) (14)
Germany
Dec 31,
2023
Apr 20,
2022
1 EUR =
₹91.95
–
67
183
116
–
162
5
2
3
100
36
Simplus
Australia Pty
Ltd(15)
Australia
Jan 31,
2024
NA
1 AUD =
₹54.67
18
(17)
51
50
–
149
14
–
14
100
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
71
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
37
Infosys Public
Services
Canada
Inc.(16)(17)
Canada
Mar 31,
2024
NA
1 CAD =
₹61.27
13
12
48
23
–
149
18
5
13
100
38
Fluido Sweden
AB (Extero)(18)
Sweden
Dec 31,
2023
NA
1 SEK =
₹8.29
11
37
73
25
–
140
39
8
31
100
39
Infosys Fluido
U.K., Ltd. (18)
UK
Dec 31,
2023
NA
1 GBP =
₹105.72
4
(19)
36
51
–
121
8
–
8
100
40
Infosys BPO
Americas LLC(3)
US
Mar 31,
2024
NA
1 USD =
₹83.41
130
(54)
106
30
–
120
49
11
38
100
41
Infy Consulting
B.V.(4)
The
Netherlands
Dec 31,
2023
NA
1 EUR =
₹91.95
1
55
85
29
–
114
12
3
9
100
42
Infosys Chile
SpA (2)
Chile
Dec 31,
2023
NA
1 CLP =
₹0.09
7
24
58
27
–
91
15
7
8
100
43
Simplus
Philippines,
Inc.(19)
Philippines
Jan 31,
2024
NA
1 PHP =
₹1.47
1
13
21
7
–
89
4
1
3
100
44
HypoCasso
B.V.(5)
The
Netherlands
Dec 31,
2023
NA
1 EUR =
₹91.95
8
13
39
18
–
86
14
4
10
75
45
Infosys
Consulting
SAS(4)
France
Dec 31,
2023
NA
1 EUR =
₹91.95
29
(15)
48
34
–
85
7
–
7
100
46
Panaya Inc.
(Panaya) (2)
US
Dec 31,
2023
Mar 5,
2015
1 USD =
₹83.21
–
381
519
138
–
83
5
11
(6)
100
47
Infosys Middle
East FZ LLC(10)
Dubai
Dec 31,
2023
Jan 01,
2018
1 AED =
₹22.66
1
(14)
41
54
–
81
2
–
2
100
48
BASE life
science AG(20)
Switzerland
Jun 30,
2023
Sep 1,
2022
1 CHF =
₹91.02
1
39
66
26
–
79
29
4
25
100
49
Fluido Norway
A/S (18)
Norway
Dec 31,
2023
NA
1 NOK =
₹8.18
–
52
71
19
–
65
19
4
15
100
50
Infosys Limited
Bulgaria
EOOD(2)
Bulgaria
Dec 31,
2023
NA
1 BGN =
₹47.03
2
4
17
11
–
59
4
1
3
100
51
Infosys
Consulting
(Belgium) NV(4)
Belgium
Dec 31,
2023
NA
1 EUR =
₹91.95
3
(7)
28
32
–
56
5
–
5
100
Infosys Integrated Annual Report 2023-24
72
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
52
Fluido Denmark
A/S (18)
Denmark
Dec 31,
2023
NA
1 DKK =
₹12.34
3
(16)
25
38
–
47
(19)
(4)
(15)
100
53
Infosys Business
Solutions LLC(2)
Qatar
Dec 31,
2023
Feb 20 ,
2022
1 QAR =
22.83
8
20
34
6
–
42
18
2
16
100
54
Infosys Green
Forum(2)
India
Mar 31,
2024
NA
INR
1
298
342
43
–
38
6
–
6
100
55
BASE life
science
GmbH(20)
Germany
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹88.98
–
1
16
15
–
31
–
–
–
100
56
BASE life
science S.L. (20)(21)
Spain
Jun 30,
2023
NA
1 EUR =
₹88.98
–
3
29
26
–
26
4
1
3
100
57
Infosys
Consulting
S.R.L.(2)
Argentina
Dec 31,
2023
NA
1 ARS =
₹0.10
8
(24)
11
27
–
43
9
19
(10)
100
58
BASE life
science Ltd.(20)
UK
Jun 30,
2023
Sep 1,
2022
1 GBP =
₹103.66
–
9
15
6
–
22
9
3
6
100
59
GuideVision
Magyarország
Kft.(22)
Hungary
Dec 31,
2023
NA
1 HUF =
₹0.24
–
1
6
5
–
21
(1)
–
(1)
100
60
Infosys South
Africa (Pty)
Ltd(10)
South Africa
Dec 31,
2023
NA
1 ZAR =
₹4.49
8
–
16
8
–
20
(1)
(1)
–
100
61
GuideVision
Polska SP. Z
O.O.(22)
Poland
Dec 31,
2023
NA
1 PLN =
₹21.22
–
1
4
3
–
17
–
–
–
100
62
WongDoody
d.o.o (formerly
Oddity Code
d.o.o) (25)(23)
Serbia
Dec 31,
2023
Apr 20,
2022
1 RSD =
0.79
–
5
7
2
–
16
3
1
2
100
63
Danske IT
and Support
Services India
Private Limited
(“DIT”) (2)(24)
India
Mar 31,
2024
Sep 1,
2023
INR
–
79
82
3
–
367
63
9
54
100
64
Infosys Austria
GmbH(2)
Austria
Dec 31,
2023
NA
1 EUR =
₹91.95
1
–
30
29
–
13
(2)
–
(2)
100
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
73
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
65
WongDoody
limited (Taipei)
(formerly
known as
oddity Limited
(Taipei)) (25)
Taiwan
Dec 31,
2023
Apr 20,
2022
1 TWD =
2.71
–
2
6
4
–
12
2
–
2
100
66
Panaya
Germany
GmbH(9)(26)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
–
(2)
14
16
–
12
–
(1)
1
100
67
GuideVision
Suomi Oy(22)
Finland
Dec 31,
2023
NA
1 EUR =
₹91.95
–
1
3
2
–
11
(1)
–
(1)
100
68
Fluido Slovakia
s.r.o(18)
Slovakia
Dec 31,
2023
NA
1 EUR =
₹91.95
1
6
8
1
–
10
1
–
1
100
69
Infosys
Financial
Services
GmbH (10)(27)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
–
4
12
8
–
9
3
2
1
100
70
GuideVision
Deutschland
GmbH(22)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
–
(7)
4
11
–
9
(7)
–
(7)
100
71
Infosys Fluido
Ireland, Ltd.(28)
Ireland
Dec 31,
2023
NA
1 EUR =
₹91.95
1
3
5
1
–
8
2
–
2
100
72
BASE life
science S.r.l.(20)
Itlay
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹88.98
–
(1)
5
6
–
8
(1)
–
(1)
100
73
BASE life
science S.A.S(20)
France
Jun 30,
2023
Sep 1,
2022
1 EUR =
₹88.98
–
–
10
10
–
8
–
–
–
100
74
WongDoody
(Shanghai)
Co. Limited
(formerly oddity
(Shanghai)
Co.,Ltd.)(25)
China
Dec 31,
2023
Apr 20,
2022
1 RMB =
₹11.67
1
4
7
2
–
7
1
–
1
100
75
GuideVision UK
Ltd(22)(29)
UK
Dec 31,
2023
NA
1 GBP =
₹105.72
–
2
3
1
–
6
–
–
–
100
76
Infosys Norway
A/S(10)(30)
Norway
Dec 31,
2023
NA
1 NOK =
₹8.18
2
(1)
12
11
–
4
(1)
–
(1)
100
77
Stater Gmbh(5)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
–
(24)
3
27
–
2
(17)
–
(17)
75
Infosys Integrated Annual Report 2023-24
74
Sl.
No.
Name of the
subsidiary
Country
Financial
period
ended
Date of
acquisition
Exchange
rate/
Reporting
currency
Share
capital
Reserves
and
surplus
Total
assets
Total
liabilities
(excluding
share capital
and reserves
and surplus)
Investments
Turnover(1)
(Includes
inter-
company
transactions)
Profit /
(Loss)
before
taxation (1)
Provision
for
taxation (1)
Profit /
(Loss)
after
taxation (1)
% of
shareholding
78
Stater XXL B.V.(5)
The
Netherlands
Dec 31,
2023
NA
1 EUR =
₹91.95
–
–
2
2
–
1
–
–
–
75
79
BASE life
science Inc.(20)
US
Jun 30,
2023
Sep 1,
2022
1 USD =
₹82.04
–
–
1
1
–
1
–
–
–
100
80
Infosys Nova
Holdings LLC.
(Infosys Nova)(2)
US
Dec 31,
2023
NA
1 USD =
₹83.21
2,766
7 2,777
4
–
–
(1)
–
(1)
100
81
Infosys
Consulting
Holding AG(2)
Switzerland
Dec 31,
2023
Oct 22,
2012
1 CHF =
₹99.02
162
426
623
35
–
–
45
2
43
100
82
Infosys Arabia
Limited(31)(29)
Saudi Arabia Dec 31,
2023
NA
1 SAR =
₹22.19
3
1
4
–
–
–
–
–
–
70
83
Infosys
Germany
Holding
Gmbh(2)
Germany
Dec 31,
2023
NA
1 EUR =
₹91.95
2
–
2
–
–
–
–
–
–
100
84
Infosys
Germany GmbH
(10)
Germany
Dec 31,
2023
Mar 22,
2022
1 EUR =
₹91.95
–
(119)
337
456
–
–
(54)
–
(54)
100
85
Brilliant Basics
Limited(32)(29)
UK
Mar 31,
2024
NA
1 GBP =
₹105.03
–
1
1
–
–
–
–
–
–
100
86
Skava Systems
Pvt. Ltd. (Skava
Systems)(2)(29)
India
Mar 31,
2024
Jun 2,
2015
INR
–
3
3
–
–
–
–
(1)
1
100
87
Brilliant Basics
Holdings
Limited(2)(29)
UK
Mar 31,
2024
Sep 8,
2017
1 GBP =
₹105.03
–
66
66
–
–
–
1
–
1
100
88
Infosys
Turkey Bilgi
Teknolojileri
Limited Sirketi(2)
Turkey
Dec 31,
2023
NA
1 TRY =
₹2.82
47
(42)
115
110
–
(10)
19
–
19
100
89
Infosys BPM UK
Limited(3)
UK
Mar 31,
2024
NA
1 GBP=
₹105.03
1
–
1
–
–
–
–
–
–
100
90
Simplus ANZ
Pty Ltd.(19)
Australia
Jan 31,
2024
NA
1 AUD =
₹54.67
–
–
–
–
–
–
–
–
–
100
91
Innovisor Inc.(20)
US
Jun 30,
2023
Sep 1,
2022
1 USD =
₹82.04
–
–
–
–
–
–
–
–
–
100
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
75
(1) Converted at monthly average exchange rates
(2) Wholly-owned subsidiary of Infosys Limited
(3) Wholly-owned subsidiary of Infosys BPM Limited
(4) Wholly-owned subsidiary of Infosys Consulting Holding AG
(5) Wholly-owned subsidiary of Stater N.V
(6) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(7) Majority owned and controlled subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd)
(8) 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
(9) Wholly-owned subsidiary of Panaya Inc.
(10) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.)
(11) 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.
(12) On November 24, 2023 Stater Participations B.V (a Wholly-owned subsidiary of Stater N.V.)
merged with Stater N.V and Stater Belgium N.V./S.A, which was formerly a wholly-owned
subsidiary of Stater Participations B.V. became a wholly-owned subsidiary of Stater N.V.
(13) Wholly-owned subsidiary of Infy Consulting Company Limited
(14) 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 WongDoody Gmbh (formerly known as
oddity GmbH)
(15) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(16) Wholly-owned subsidiary of Infosys Public Services, Inc.
(17) Incorporated on July 8, 2022
(18) Wholly-owned subsidiary of Fluido Oy
(19) Wholly-owned subsidiary of Outbox systems Inc. dba Simplus (US)
(20) Wholly-owned subsidiary of BASE life science A/S
(21) Incorporated on September 6, 2022
(22) Wholly-owned subsidiary of GuideVision s.r.o.
(23) On September 29, 2023, Oddity space GmbH, oddity waves GmbH, oddity jungle GmbH,
oddity group services GmbH and oddity code GmbH merged into WongDoody GmbH and
oddity code d.o.o, which was formerly a subsidiary of oddity code Gmbh has become a
subsidiary of WongDoody Gmbh (formerly known as oddity GmbH)
(24) On September 1, 2023 Infosys Limited acquired 100% of voting interests in Danske IT and
Support Services India Private Limited (Danske IT).Danske IT renamed as Idunn Information
Technology Private Limited from April 1, 2024.
(25) Wholly-owned subsidiary of Wongdoody Gmbh (formerly known as oddity GmbH)
(26) Incorporated effective December 15, 2022
(27) 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.
(28) Wholly-owned subsidiary of Infosys Fluido UK, Ltd.
(29) Under liquidation
(30) Incorporated effective September 22, 2022.
(31) Majority-owned and controlled subsidiary of Infosys Limited
(32) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
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 ₹1,33,000 per equity share (₹10,000 par value) and ₹4.00 per equity
share ( ₹10 par value) 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
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. ACS 21918
Infosys Integrated Annual Report 2023-24
76
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, 2024, 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, 2024.
for and on behalf of the Board of Directors
Sd/-
Sd/-
Bengaluru
April 18, 2024
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer and
Managing Director
DIN: 00016304
DIN: 01876159
Infosys Integrated Annual Report 2023-24
77
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 the CEO and other Senior Management Personnel (SMP) 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 2024 as compared to fiscal 2023 is primarily on account of change in perquisite value of stock incentives granted in previous years and
exercised during the year. The change in perquisite value of stock incentives exercised during the year also includes the impact of number of units exercised.
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
Director
Identification
Number
(DIN)
Title
% increase of
remuneration
in fiscal 2024
as compared to
fiscal 2023 (1)
Ratio of
remuneration
to MRE (1)
% increase of remuneration in
fiscal 2024 as compared to fiscal
2023 (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
2024
Nandan M. Nilekani(2)
00041245
Non-executive and Non-
independent Chairman
–
–
–
–
–
D. Sundaram
00016304
Independent Director
5
29
5
29
–
Michael Gibbs
08177291
Independent Director
17
31
17
31
–
Uri Levine(3)
08733837
Independent Director
NA
NA
NA
NA
–
Bobby Parikh
00019437
Independent Director
10
23
10
23
–
Chitra Nayak
09101763
Independent Director
6
28
6
28
–
Govind Iyer
00169343
Independent Director
NA
24
NA
24
–
Helene Auriol Potier(4)
10166891
Independent Director
NA
NA
NA
NA
–
Nitin Paranjpe(5)
00045204
Independent Director
NA
NA
NA
NA
–
Salil Parekh(6)
01876159
Chief Executive Officer and
Managing Director
17
677
5
279
4,23,207
Nilanjan Roy(7)
NA
Chief Financial Officer
1
110
(8)
47
55,114
A.G.S. Manikantha(8)
NA
Company Secretary
-
15
5
11
5,980
MRE – Median Remuneration of Employees
Notes:
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 and ratio of
remuneration to MRE, excluding perquisite value of stock incentives exercised during the year.
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 2024 and full fiscal 2023. 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 2024.
Infosys Integrated Annual Report 2023-24
78
The change in remuneration in fiscal 2024 as compared to fiscal 2023 is primarily on account of change in perquisite value of stock incentives granted in previous years and exercised during the year.
(1) Remuneration to KMP includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the
Income-tax Act, 1961. Accordingly, the value of stock incentives granted during the period is not included. The number of stock incentives granted in fiscal 2024 is mentioned in the above table.
Independent Directors are not entitled to any stock incentives.
(2) Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.
(3) Uri Levine retired as an Independent Director effective April 19, 2023.
(4) Helene Auriol Potier appointed as an Independent Director effective May 26, 2023.
(5) Nitin Paranjpe appointed as an Independent Director effective January 1, 2024.
(6) a) Remuneration includes ₹39.03 crore pertaining to exercise of 2,58,636 Restricted Stock Units (RSUs) under the 2015 Plan and 32,447 RSUs under the 2019 Plan during fiscal 2024.
b) On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his employment agreement effective July 1, 2022, the
Board approved
i) the grant of 2,72,026 performance-based RSUs under the 2015 Plan effective May 2, 2023. These will vest based on the achievement of certain performance targets.
ii) the grant of 15,656 performance-based RSUs under the 2015 Plan effective May 2, 2023. These will vest based on the achievement of certain environment, social and governance milestones as
determined by the Board.
iii) the grant of 39,140 performance-based RSUs under the 2015 Plan effective May 2, 2023. 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 18,104 annual time-based RSUs for fiscal 2024 under the 2015 Plan effective February 1, 2024.
v) the grant of 78,281 performance-based RSUs for fiscal 2024 under the 2019 Plan effective May 2, 2023. 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 employment agreement.
(7) a) Remuneration includes ₹6.17 crore on account of exercise of 28,108 RSUs under the 2015 Plan and 15,834 RSUs under the 2019 Plan during fiscal 2024.
b) On the recommendations of the nomination and remuneration committee, the Board approved
i) the grant of 6,774 performance-based RSUs under the 2015 Plan effective May 2, 2023
ii) the grant of 34,320 time-based RSUs under the 2015 Plan effective November 1, 2023
iii) the grant of 14,020 performance-based RSUs under the 2019 Plan effective November 1, 2023.
c) Nilanjan Roy resigned as Chief Financial Officer of the Company effective March 31, 2024.
(8) a) Remuneration includes ₹0.4 crore on account of exercise of 342 RSUs under the 2015 Plan and 2,767 RSUs under the 2019 Plan during fiscal 2024.
b) On the recommendations of the Nomination and Remuneration Committee, the Board approved the grant of 4,080 RSUs under the 2015 Plan and 1,900 performance-based RSUs under the 2019 Plan
effective February 1, 2024 each. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.
The MRE was ₹9,77,868 and ₹9,00,012 in fiscal 2024 and fiscal 2023, respectively. The increase in MRE in fiscal 2024, as compared to fiscal 2023, is 8.65%.
The average annual increase in the salaries of employees was 9% in India after accounting for promotions and other event-based compensation revisions for employees
covered as part of rewards program. Employees outside India received a wage increase in line with the market trends in the respective countries.
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
79
3(b) Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Top 10 employees in terms of remuneration drawn during the year
Employee
name
Designation
Educational
qualification
Age
Experience
(in years)
Date of
joining
Location
Remuneration in
fiscal 2024 (In ₹) (1)
No. of RSUs granted
in fiscal 2024 (2)
Previous employment and
designation
Salil Parekh
CEO & MD
B.Tech, ME
59
36
Jan 2, 2018
India
66,24,58,285(3)
4,23,207
Capgemini, Director General
Martha King
Chief Client Officer
BS
60
39
Oct 12, 2020
US
36,51,59,818(4)*
1,00,109
Vanguard, Managing
Director
Frank
Satterthwaite
Senior Vice President –
Delivery, FSHIL
BS, MBA
61
34
Oct 12, 2020
US
14,92,40,258(5)*
58,594
Vanguard, Principal
Karmesh Gul
Vaswani
Segment Head – CPG,
Logistics & Retail
BE
52
31
Mar 3, 2003
UK
13,16,33,676(6)
1,31,280 Accenture, Senior Manager
Inderpreet
Sawhney
Group General Counsel and
Chief Compliance Officer
BA LLB, LLM
59
33
Jul 3, 2017
US
12,63,69,723(7)
1,17,000
Wipro, Senior Vice President
and General Counsel
Anand
Swaminathan
Segment Head –
Communication, Media and
Technology
ACS, AICWA,
MS
52
32
Apr 26,
1999
US
12,48,18,736(8)
1,06,160
Rane Brake Linings Limited,
Manager Information
Technology
Kathy Fuertes
Vice President, Technology
BS, AS -
Computer
Science
59
27
Oct 12, 2020
US
11,92,55,687(9)*
3,219
Vanguard, Principal – Head
of Information Technology
for Institutional Investor
Group
Ruchir
Budhwar
Industry Head –
Manufacturing
BE, Master in
International
Business
48
26
Sep 6, 1999
Germany
11,66,71,275(10)*
63,380
Sumitomo Corp. India
Private Limited, Executive/
Assistant Manager
David Wilson
Head – Partner Ecosystem
BS
56
25
Jul 30, 2018
US
11,37,69,947(11)
39,140
IBM, Vice President –
Business Partner
Umashankar
Lakshmipathy
Service Offering Head
BE
55
35
Jun 7, 2010
UK
10,81,74,483(12)*
62,720
Wipro, General Manager –
Technology Infrastructure
Services
Notes: The details in the above table are on accrual basis for better comparability with the KMP remuneration disclosures included in other sections of this Annual Report.
The aforementioned employees have / had permanent employment contracts with the Company.
Employees mentioned above are neither relatives of any directors of the Company, nor hold 2% or more of the paid-up equity share capital of the Company as per Clause (iii) of sub-rule (2) of Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
For employees based overseas, average exchange rates have been used for conversion to INR.
(1) Includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the Income-tax Act, 1961 or
relevant overseas tax regulations as applicable. Accordingly, the value of stock incentives granted during the period is not included. The number of stock incentives granted in fiscal 2024 is included in the
table above.
(2) Includes equity-settled and cash-settled RSUs issued at par under the 2015 and 2019 Plans.
(3) Remuneration includes ₹39.03 crore on account of exercise of 2,58,636 RSUs under the 2015 Plan and 32,447 RSUs under the 2019 Plan during fiscal 2024.
(4) Remuneration includes ₹6.44 crore on account of exercise of 32,099 RSUs under the 2015 Plan and 9,977 RSUs under the 2019 Plan during fiscal 2024.
(5) Remuneration includes ₹2.03 crore on account of exercise of 9,325 RSUs under the 2015 Plan and 3,676 RSUs under the 2019 Plan during fiscal 2024.
Infosys Integrated Annual Report 2023-24
80
(6) Remuneration includes ₹3.56 crore on account of exercise of 12,470 RSUs under the 2015 Plan and 12,249 RSUs under the 2019 Plan during fiscal 2024.
(7) Remuneration includes ₹3.59 crore on account of exercise of 12,075 RSUs under the 2015 Plan and 13,499 RSUs under the 2019 Plan during fiscal 2024.
(8) Remuneration includes ₹5.76 crore on account of exercise of 23,419 RSUs under the 2015 Plan and 16,334 RSUs under the 2019 Plan during fiscal 2024.
(9) Remuneration includes ₹0.77 crore on account of exercise of 2,834 RSUs under the 2015 Plan and 2,198 RSUs under the 2019 Plan during fiscal 2024.
(10) Remuneration includes ₹2.97 crore on account of exercise of 8,996 RSUs under the 2015 Plan and 11,033 RSUs under the 2019 Plan during fiscal 2024.
(11) Remuneration includes ₹5.54 crore on account of exercise of 27,773 RSUs under the 2015 Plan and 9,499 RSUs under the 2019 Plan during fiscal 2024.
(12) Remuneration includes ₹3.19 crore on account of exercise of 11,309 RSUs under the 2015 Plan and 10,366 RSUs under the 2019 Plan during fiscal 2024.
*
Remuneration includes special bonus.
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
81
Annexure 4: Independent Auditor’s certificate on corporate governance
REF:IL/2024-25/001
INDEPENDENT AUDITOR’S CERTIFICATE
TO THE MEMBERS OF INFOSYS LIMITED
CERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement letter reference no. IL/2023-24/23 dated July 19, 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, 2024, 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, 2024.
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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
Place: Bengaluru
Date: April 18, 2024
Sd/-
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
UDIN: 24039826BKCODN8839
Infosys Integrated Annual Report 2023-24
82
Annexure 5 – Secretarial audit report for the financial year ended March 31, 2024
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 of 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 conducts/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, 2023 to March 31, 2024
(“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 and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and bye-laws framed there under;
(iv) 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. (Not applicable to the Company
during the audit period)
Infosys Integrated Annual Report 2023-24
83
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 (“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 has issued and allotted 6,11,715 Equity Shares of face value of ₹5/- each pursuant to 2015 Stock Incentive Compensation
Plan and 16,95,705 Equity Shares of face value of ₹5/- each pursuant the Infosys Expanded Stock Ownership Program 2019.
• The Company has acquired 100% of the share capital of Idunn Information Technology Private Limited (Formerly knows as Danske IT
and Support Services India Private Limited) followed by a business transfer agreement.
• The Company has approved acquisition of 100% of equity shares of M/s. InSemi Technology Services Private Limited.
For Makarand M. Joshi & Co.
Company Secretaries
Place: Mumbai
Date: April 18, 2024
Sd/-
Makarand M. Joshi
Partner
FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533F000164010
This report is to be read with Annexure A which forms an integral part of this report.
Infosys Integrated Annual Report 2023-24
84
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.
For Makarand M. Joshi & Co.
Company Secretaries
Place: Mumbai
Date: April 18, 2024
Sd/-
Makarand M. Joshi
Partner
FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533F000164010
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
85
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. Infosys’ CSR Policy aims to contribute to the sustainable development of society and the environment, and to make our
planet more livable for future generations. Infosys’ CSR activities provide a dedicated approach to community development in the
areas of Education, Malnutrition and Health, Empowerment of Women, Environmental Sustainability, Gender Equality, Hunger, Poverty,
Rural Development, National Heritage, Art and Culture & Disaster Management. 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.
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 the rapid operationalization of Advance Mother and Child Center by providing high-quality medical equipment at PGIMER
Chandigarh.
•
Infosys Springboard, a digital literacy program powered by our tech platform that enables students to learn core digital skills, life
skills and become lifelong learners.
•
Support rapid operationalization of mother and child block at the All-India Institute of Medical Sciences (AIIMS) through provision
of medical equipment.
•
STEM labs, online courses and scholarships to meritorious students in partnership with Ramakrishna Mission schools across
the country;
•
Rejuvenation of lakes in Bengaluru city and surrounding areas;
•
Supporting Cardiac Obstetric Centre with advanced medical equipment for the upcoming Mother and Child Hospital at Madras
Medical College, Chennai;
•
Establishment of the mother and child care unit with infrastructure and procurement of medical and non-medical equipment for the
gynecology, obstetrics and pediatric departments of the hospital by the Sai Aashraya Trust.
•
Tie-up with L V Prasad Eye Institute, Hyderabad; launched SightConnect app developed by the TechForGood team in the first phase.
2. Composition of CSR Committee:
Sl.
No.
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
1
Govind Iyer
Chairperson
4
4
2
Chitra Nayak
Member
4
4
3
Uri Levine(1)
Member
1
1
4
Michael Gibbs(2)
Member
3
3
(1) Ceased to be a member of the Committee due to retirement as Independent director effective April 19, 2023
(2) Appointed as a member of the Committee effective April 20, 2023
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 18, 2024, has approved the annual
action plan / projects for fiscal 2025, the details of which are available on our website, at
https://www.infosys.com/investors/reports-filings/documents/csr-projects2024-25.pdf.
Infosys Integrated Annual Report 2023-24
86
4. Executive summary and web link(s) of Impact Assessment reports
The Company has been implementing various CSR projects for holistic community development and institution building to serve the
enrichment and evolution of businesses and communities. For fiscal 2024, the Company has engaged an external agency to provide
support and assistance for an independent review and impact assessment.
Methodology:
In order to assess the impact of its CSR projects, a mixed-method approach was deployed which involved either one of or both the
quantitative and qualitative research tools (as relevant) for primary data collection. Using these tools, the team conducted interactions
(virtual and on-field) with the project beneficiaries and other relevant stakeholders. Post data collection and analysis, the key insights
and findings were collated in the form of a consolidated report for the Management’s consideration. This study was guided by
the Inclusiveness, Relevance, Effectiveness, Convergence and Sustainability (IRECS) Framework which was used to provide overall
feedback on the efficacy of implementation as well, as its efficiency in terms of achievement of the desired project outputs with
reference to inputs.
Summary:
Projects undertaken for impact assessment in the current year cover the broad areas of education, healthcare, women empowerment,
sustainability and art & culture as described below. The 13 projects qualifying for impact assessment covers a total of around 23 lakh
beneficiaries across various states in India. These projects align with the ESG framework and support 10 of the UN SDG goals.
Theme 1: Education
Impact : Emphasis on Digital education and easy access to the online learning content ensured a positive impact on the students
academic performance and a reduction in the drop out rates.
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
1.
VidyaGanga – a digital school program, that aims to ensure
continuity of learning for rural students
9 states across the country
eVidyaloka Trust
(Implementation partner)
2.
Kai Hididu Nadesennanu – a digital education program to
ensure improve learning outcomes
23 districts across Karnataka
Yuva Brigade
(Implementation partner)
3.
Provision of tablets for 10th and 12th standard students to
ensure continuity and performance in their studies
38 districts across Karnataka,
Tamil Nadu, and Puducherry
Dhwani Foundation
(Implementation partner)
Theme 2: Healthcare
Impact : Immediate COVID response enhanced the hospital’s capabilities to effectively meet the surging demand of patients and the
equipments provided quality treatment to the patients with respiratory distress.
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
1.
COVID-19 support to Gandhi Hospital – critical medical
equipment support
Secunderabad, Telangana
Self-implementation
2.
COVID-19 support to Chinmaya Mission Hospital – critical
medical equipment support
Bengaluru, Karnataka
Self-implementation
Theme 3: Women empowerment
Impact : The projects aided improved performance in academics, enabled financial independence, reduced expenses on
healthcare, ensured participation in community activities and also contributed to the reduction of child labor, child marriage and
the Devadasi System.
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
1.
Construction of girls’ hostel building at IIIT Dharwad
campus – providing modern residential facility
Dharwad, Karnataka
Self-implementation
2.
Construction of multipurpose hall for 200 girls – at
Shakthidhama women rehabilitation center
Mysuru, Karnataka
Self-implementation
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
87
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
3.
Rajya Mahila Okoota (RMO) and Grakoos – to uplift the
under-served and marginalised communities
Raichur and Yadgir
districts, Karnataka and
Mahabubnagar, Telangana
Khushi Trust
(Implementation partner)
4.
Holistic village development by community participation
– to solve community issues and attain sustainable village
development
Jhabua and Alirajpur
districts, Madhya Pradesh
Shivganga Samagra
Gram Vikas Parishad
(Implementation partner)
Theme 4: Sustainability
Impact: Improved cook stove projects reported reduction in waste generation, cooking time, indoor air pollution and associated health
hazards. Women have been empowered through engagement in social activities within their community.
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
1.
Improved cookstove program in Udaipur – helping women
and environment by addressing the issue of indoor air
pollution
Udaipur, Rajasthan
Udaipur Urja Initiatives
Producer Company Limited
(Technical partner)
2.
Improved cookstove program in Satara – solving the indoor
air pollution
Satara, Maharashtra
Envirofit Private limited
(Technical partner)
3.
Improved cookstove program, Ganjam – solving the indoor
air pollution
Ganjam, Odisha
Theme 5: Arts & Culture
Impact: Digital transformation innovations have made art accessible to diverse communities, enhanced visitor engagement and
promoted inclusivity. It has provide local artisans a platform to showcase their work.
Sl. No. Overview of CSR project under assessment
Project location
Implementation mechanism
1.
Provide infrastructure for the construction of Museum of Art
and Photography
Bengaluru, Karnataka
Art and Photography Foundation
(Implementation partner)
The executive summary of the impact assessment report can be accessed at
https://www.infosys.com/investors/reports-filings/documents/csr-impact-assessment-reports2023-24.pdf.
Detailed impact assessment reports can be accessed at
https://www.infosys.com/investors/reports-filings/documents/csr-impact-assessment-reports2023-24.pdf.
5. (a) Average net profit of the Company as per sub-section (5) of Section 135: ₹24,608.45 crore
(b) Two percent of average net profit of the Company as per sub-section (5) of Section 135: ₹492.17 crore
(c) Surplus arising out of the CSR projects or programs or activities of the previous financial years: 3.04 crore*
(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)]: ₹495.21 crore
* The surplus relates to fiscal 2024.
6. (a) Amount spent on CSR projects (both ongoing project and other than ongoing project): ₹450.76 crore
(b) Amount spent in administrative overheads: ₹4.64 crore
(c) Amount spent on Impact Assessment, if applicable: ₹0.27 crore
(d) Total amount spent for the financial year [(a) + (b) + (c)]: ₹455.67 crore
(e) CSR amount spent or unspent for the financial year:
Total amount spent
for the financial year
(In ₹ crore)
Amount unspent (In ₹ crore)
Total amount transferred to unspent CSR
account as per sub-section (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
455.67*
39.54
Refer to Note
NA
NA
NA
Note:
*
Includes surplus of `3.04 crore generated and spent during the year.
The fiscal 2024 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”).
Infosys Integrated Annual Report 2023-24
88
(f) Excess amount for set-off, if any:
Sl. No.
Particular
Amount (In ₹ crore)
(i)
Two percent of average net profit of the Company as per sub-section (5) of Section 135
492.17
(ii)
Total amount spent for the financial year(1)
452.63
(iii)
Excess amount spent for the financial year [(ii) - (i)]
Nil
(iv)
Surplus arising out of the CSR projects or programs or activities of the previous financial years, if any(2)
3.04
(v)
Amount available for set off in succeeding financial years [(iii) - (iv)]
Nil
(1) Excludes surplus relating to fiscal 2024.
(2) The surplus relates to fiscal 2024.
7. Details of unspent Corporate Social Responsibility amount for the preceding three financial years:
(In ₹ crore)
Sl.
No.
Preceding
financial
year(s)
Amount
transferred to
unspent CSR
account under
sub-section (6) of
Section 135
Balance amount
in unspent CSR
account under
sub-section (6)
of Section 135 (1)
Amount
spent in the
financial
year
Amount transferred to a
fund as specified under
Schedule VII as per second
proviso to sub-section (5) of
Section 135, if any
Amount
remaining to
be spent in
succeeding
financial years
Deficiency,
if any
Amount
Date of transfer
1
Fiscal 2021
49.52
Nil
Nil
Nil
NA
Nil
NA
2
Fiscal 2022
51.79
9.14
8.94
Nil
NA
0.20
NA
3
Fiscal 2023
45.33
45.33
38.69
Nil
NA
6.64
NA
Note:
(1) Unspent balance as on April 01, 2023
8. Details of capital assets created or acquired through Corporate Social Responsibility amount spent during
the financial year:
The number of capital assets created / acquired: 23
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
spent (1)
(In ₹ crore)
Details of entity/ authority/ beneficiary of the
registered owner
CSR Registration
Number,
if applicable
Name
Registered address
1.
Medical equipment and
software support for Mother
and Child Block
Address: AIIMS Ansari Nagar,
New Delhi - 110029
110029
Apr 01, 2023
to Mar 31,
2024
32.33
NA
All India
Institute
of Medical
Sciences
(AIIMS)
Ansari Nagar,
New Delhi - 110029
2.
Construction of STEM labs at 60
schools across India
Address: Ramakrishna Mission,
PO Belur Math, Howrah,
West Bengal - 711202
711202
Apr 01, 2023
to Mar 31,
2024
22.55
CSR00006101
Ramakrishna
Mission
PO Belur Math,
Howrah, West
Bengal - 711202
3.
Biogas units for smoke-free
kitchens to various beneficiaries
Address: Bagalakote, Karnataka
587101
Apr 01, 2023
to Mar 31,
2024
12.26
NA
Various
beneficiaries
(Individual
households)
Bagalakote,
Karnataka
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
89
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
spent (1)
(In ₹ crore)
Details of entity/ authority/ beneficiary of the
registered owner
CSR Registration
Number,
if applicable
Name
Registered address
4.
Medical equipment
Address: PCMC’S PGI
Yashwantrao Chavan Memorial
Hospital, Pimpri- Pune,
Maharashtra - 411018
411018
Jan 05, 2024
2.72
NA
Pimpri
Chinchwad
Muncipal
Corporation's
Postgraduate
Institute
Yashwantrao
Chavan
Memorial
Hospital
Pimpri, Sant
Tukaram Nagar,
Pimpri colony, Pune
- 411018
5.
Medical equipment
Address: Rajiv Gandhi
Government General Hospital
Grand Southern Trunk Rd, near
Park Town, Near Chennai Central
Park Town Chennai,
Tamil Nadu - 600003
600003
Sep 06, 2023
1.74
NA
Rajiv Gandhi
Government
General
Hospital
Grand Southern
Trunk Rd, near Park
Town, Near Chennai
Central Park Town
Chennai, Tamil
Nadu-600003
6.
Medical equipment
Address: Sri Jayadeva Institute
of Cardiovascular Sciences and
Research, Bannerghatta Rd, 3
Jayanagara 9th Block, Jayanagar
Bengaluru, Karnataka - 560069
560069
Jun 20, 2023
1.10
CSR00002786
Sri Jayadeva
Institute of
Cardiovascular
Sciences and
Research
Bannerghatta Rd,
3 Jayanagara 9th
Block, Jayanagar
Bengaluru,
Karnataka - 560069
7.
Capacity expansion and
rezoning of Narayan Rao Melgiri
National Law Library
Address: National Law School
of India University, Gnana
Bharathi Main Rd, opp. NAAC,
Teachers Colony, Naagarabhaavi,
Bengaluru, Karnataka - 560072
560072
Feb 02, 2024
1.08
NA
National Law
School of India
University
Gnana Bharathi
Main Rd, opp. NAAC,
Teachers Colony,
Naagarabhaavi,
Bengaluru,
Karnataka - 560072
8.
Biogas units for smoke-free
kitchens to various beneficiaries
Address: Nagpur, Maharashtra
441104
Apr 01, 2023
to Mar 31,
2024
1.04
NA
Various
beneficiaries
(Individual
households)
Nagpur,
Maharashtra
Note:
(1) The 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-assets2023-24.pdf.
Includes projects which have been completed in fiscal 2024.
Includes the amount spent in fiscal 2024 and does not indicate the complete value of the asset.
9. Reasons for not spending two percent of the average net profit as per sub-section (5) of Section 135.
During fiscal 2024, the Company has spent ₹455.67 crore on various projects including surplus of `3.04 crore. The unspent
balance of `39.54 crore is towards various ongoing projects and will be transferred to the unspent CSR account and spent in
accordance with the CSR Rules.
Sd/-
Sd/-
Bengaluru
April 18, 2024
Govind Iyer
Chairman, CSR Committee
Salil Parekh
Chief Executive Officer
and Managing Director
DIN: 00169343
DIN: 01876159
Infosys Integrated Annual Report 2023-24
90
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 2024 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
Amount in USD
Teacher training
2,086,685
Student education
1,199,428
Advocacy and awareness
463,381
Research and curriculum
411,396
Humanitarian assistance in Eastern Europe
150,000
Classroom aids and technology
100,000
Operating expenses
287,377
Grand total*
4,698,267
* Equivalent to `39 crore
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
91
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
the Company achieving carbon neutrality for five years in a
row since fiscal 2020, across all emissions, as per PAS 2060:2014
standards. As we continue to remain carbon neutral for fiscal
2024, our efforts align with global commitments, thereby
supporting the global response to the threat of climate change.
Resource conservation initiatives
Resource conservation initiatives
Conservation of natural resources (energy and 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 existing buildings, intelligent automation,
water management plans, and waste treatment and management
projects have significantly reduced our environmental impact.
We have been able to expand our business while continuously
reducing our resource intensity.
The increased adoption of renewable energy in our operations
has helped avoid emissions significantly, and our high-
impact carbon offset projects have enabled us offset
unavoidable emissions.
Energy: Infosys follows a two-pronged strategy of constructing
super-efficient new buildings and improving operations in
existing buildings. Every new building at Infosys strives to set a
benchmark for energy efficiency, thereby redefining industry
best standards and practices. Smart automation continues to
play an important role in remote operations to ensure long-
term efficiency, continuously identifying opportunities for
improvement and increasing system resilience.
While new buildings were built to high energy efficiency
standards from the outset, the capital investment in energy
conservation projects in existing buildings amounted to
`3.4 crore in fiscal 2024.
Infosys Crescent campus in Bengaluru was recognized as one
of the 100 iconic sustainable buildings across G-20 member
countries and beyond. Various government organizations and
corporates visited our campuses to witness innovative energy
and water conservation techniques. Solar Decathlon India, the
world’s largest net-zero building challenge, held at our campus in
Mysuru, is a testament to our advocacy efforts to positive global
climate action beyond our boundaries.
Renewable energy: With a total installed capacity of about
60.2 MW of solar PV, including roof-top and ground-mounted
systems, we continue to pursue our ambition to transition to
renewables for our operations. In addition to our own solar
plants, we procure green power from third-party power
producers and from DISCOMs through green tariff mechanism.
In fiscal 2024, 67.52% of our electricity in India operations was
met through renewables.
Green buildings: In fiscal 2024, eight of our projects in Bengaluru,
Mangaluru, Chennai, Coimbatore, Hyderabad and Nagpur were
certified for high performance green buildings. These included
Platinum certification from the US Green Building Council and
Indian Green Building Council for new buildings, leased offices
and interior retrofitted buildings that were re-certified. We now
have around 29.6 million sq.ft of buildings with the highest level
of green building certification.
Transformed workplace: Infosys workplace transformation
strategy is inspired by new principles that are aligned to the
hybrid operating model. The office spaces at all locations are
being upgraded as per the new strategy. The new workplaces
are designed to be productive within the hybrid operating
model, promote the social capital of the organization, are
flexible, equipped with technology for digital collaboration,
provide health and wellness and are also environmentally
sustainable in line with our ESG goals and vision. The workplace
transformation strategy has been implemented across multiple
locations at Infosys.
Water management: Water conservation has been one of
our focus areas and this has been enabled through a holistic
approach to water management. The state-of-the-art sewage
treatment plants with tertiary treatment capabilities enable
zero discharge of wastewater from our campuses. We have
implemented lake rejuvenation projects near our campuses,
that will enhance water availability in the surroundings. We have
ensured rooftop rainwater harvesting to use rainwater effectively
in addition to recharge of groundwater aquifers through
injection wells in many of our campuses.
Waste management: Infosys follows 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
technological investments in recycling and streamlining systems
and processes. We have achieved TRUE certification for zero
waste, aimed at diversion of all non-hazardous solid waste from
landfill at three of our campuses in India during the year. We
have focused on diverting a portion of identified waste going for
incineration to co-processing.
Carbon offset: Unavoidable emissions are addressed through the
carbon offset program. Infosys continues to identify projects that
have a high social impact – improving the health and livelihoods
of rural families and creating employment opportunities, and
along the way, also generating carbon offsets for the Company.
Our unique offset program is certified to the highest level (Gold
Standard) in terms of quality, authenticity and transparency.
This year, we have implemented an improved cookstove project
in Rajasthan and a biogas projects in Maharashtra and Karnataka.
The improved cookstove reduces smoke and firewood usage,
and thus has a positive impact on health. The families benefit
from the biogas project as they save on fuel costs and get natural
Infosys Integrated Annual Report 2023-24
92
fertilizer as a by-product for agriculture. Our carbon offset
program has benefited 2,64,000+ rural families and created
over 3,900 rural jobs.
Carbon neutral events: Our vision is to ensure highest
sustainability practices at all our global events to raise awareness
and encourage participation in climate action. Measures taken
to promote environmental protection include the use of eco-
friendly materials, ban on single-use plastic, and conservation of
energy and water. The carbon emissions caused by the event are
determined and balanced through our carbon offset program.
In fiscal 2024, eight events organized by Infosys were
declared carbon neutral.
“Pioneering Net Zero Buildings – The Infosys Journey”:
In September 2023, Infosys published the book “Pioneering
Net Zero Buildings – The Infosys Journey,” which chronicles
our efforts in constructing super-efficient buildings and
thus minimizing environmental impact. The book provides a
detailed account of energy conservation at Infosys, being one
of the main pillars in achieving carbon neutrality. The unique
methodology, disruptive technologies and new benchmarks in
buildings captured in the book, is intended to guide and inspire
companies, policymakers, academia, and other stakeholders
in the industry. The book is made available to the public and
can be accessed at, https://www.infosys.com/about/corporate-
responsibility/documents/pioneering-net-zero-buildings.pdf.
Health, safety and environment
The Health, Safety and Environmental Management System
(HSEMS) at Infosys is an enunciation of our commitment
to protecting the environment and providing a safe and
healthy workplace for employees, contract workmen and
visitors. Infosys is certified to ISO 14001:2015 (Environmental
Management System) and ISO 45001:2018 (Occupational
Health & Safety Management System) in line with our strategy.
The HSEMS takes cognizance of interested parties and focuses
on compliance with applicable laws 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@Infosys: An enterprise that senses, feels and
responds in real-time – this was the theme of our transformation
journey in the recent years. It had to be a mobile-first approach
so that employees are connected to the organization wherever
they are in the world and can access the organization’s resources
to learn and contribute. The response has been phenomenal as
over 5,50,000 users have tried the InfyMe mobile app with its
300+ features since its launch and more than 73,000 users have
rated it 4.6/5 on Google PlayStore. With process bursting, we
have seen many of our key processes become faster and more
responsive and the Live Enterprise platform itself has been built
on the latest open source stack. Following the overwhelming
success in Infosys, we are also seeing interest of the Orbit
platform (InfyMe version for our clients) as 13 clients have already
been onboarded and many more are in discussion.
To enable this, our core backend infrastructure was transformed
to host modern applications, using the scalability of the
cloud, security of on-premise infrastructure in a hybrid cloud
deployment with open source technologies and highly
scalable container orchestration solutions like Kubernetes
for microservices. The telemetry infrastructure using the
ELK stack provides enhanced real-time visibility and enables
proactive error detection and correction. In the coming days,
we will further develop the platform and make it AI-first in
addition to mobile-first.
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 the flexibility to work effectively
in a hybrid environment. Our robust IT management system
minimizes threats and prevents attacks, through a continuous
cycle of vulnerability assessments and remediations to protect
our data. Multiple collaboration tools enable our employees to
connect, collaborate and innovate anytime, anywhere, resulting
in a culture of collaboration and innovation.
Cloud-native application platform: As part of the modernization
of applications, some applications need to be exposed to
different user groups with different authentication mechanisms.
The cloud‑native application platform offers these possibilities
in a ready-to-use architecture. This enables quick onboarding of
applications with industry-standard security as well as greater
scalability and availability using the power of the 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: Majority of internal IT applications
have been moved to public cloud infrastructure. Each of
our employees has access to the cloud-based platform for
collaboration such as messaging, presence, video and other
requirements. Additionally, they also have cloud-based unified
internet access and secure private access.
Data center modernization: A strategic initiative launched by
InfosysIT to modernize and future-proof the data center’s IT
landscape continues to yield high rewards. Density-optimized
hyperscale platforms have been deployed to enable high-density
server virtualization and consolidation across the enterprise.
Hyperscale platforms are open source-driven infrastructure
innovations that enable agility at cloud scale as well as efficient
pooling and utilization of resources. This initiative is delivering
significant energy savings and reduces the total cost of
ownership for the organization.
InfosysIT has invested in Data Center Infrastructure Management
(DCIM) tool to gain an accurate overview of the entire IT and
facility stack of the data center, which is the foundation for
optimization initiatives.
Enterprise storage: We provide around 1.8PB of storage capacity
for employees, delivery units 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 storage with larger capacity,
resulting in data tiering and savings in terms of data center space,
power consumption and cooling.
Annexures to the Board's report
Infosys Integrated Annual Report 2023-24
93
Cloud-native development environment: The open source-based, cloud-native development platform is built on Hyper Converged
Infrastructure (HCI) and compute which has helped to reduce data center footprint, and power and cooling consumption.
Awards and recognition
External award name
Theme
Award sponsor (Company)
Intranet Design Annual Award by
Nielsen Norman Group 2023 for InfyMe
Best Intranet Platform
Nielsen Norman Group
CII Tata – CIO Excellence Awards
Leading CIO award; For inspiring how IT leadership and
stakeholders reshape the tech industry
CII Tata Communications Centre for
digital transformation
ETCIO People’s Choice Award – 2024
Recognize and felicitate excellence in enterprise technology
across sectors and industries, providing a spectacular vision
and a culmination of India's achievements in business and
digital transformation (DX).
The Economic Times
Iconic sustainable building
Recognition of 100 iconic sustainable buildings in G20
countries and beyond, an initiative that showcases
exemplary buildings that promote climate-sensitive design
and highlight innovations to combat climate change.
Ministry of Power, Government
of India
for and on behalf of the Board of Directors
Sd/-
Sd/-
Bengaluru
April 18, 2024
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
DIN: 00016304
DIN: 01876159
Research and development (R&D) expenditure – standalone
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.
Foreign exchange earnings and outgo
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.
(In ` crore)
Activity in foreign currency – standalone
(In ` crore)
2024
2023
Revenue expenditure
Capital expenditure
Total
R&D expenditure /
revenue (%)
695
639
702
655
7
16
0.54
0.53
1,21,605
1,25,794
70,534
72,639
51,071
53,155
42.0
42.3
2024
2023
Earnings
Expenditure
Net foreign exchange
earnings (NFE)
NFE / earnings (%)
Infosys Integrated Annual Report 2023-24
94
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 are updated as
needed. During the year and at its meeting held on April 18, 2024, 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)
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.
https://www.infosys.com/investors/corporate-
governance/documents/whistleblower-policy.pdf
Code of Conduct and Ethics
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.
https://www.infosys.com/investors/corporate-
governance/documents/codeofconduct.pdf
Capital Allocation Policy
The policy applies to the distribution of free cash flow as dividends or
buyback over the next five-year period ending in fiscal 2029. The policy was
revised and adopted effective April 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/capital-allocation-policy.pdf
Dividend Distribution Policy
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 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/dividend-distribution.pdf
Infosys Code on Fair Disclosures
and Investor Relations
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 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/code-fair-disclosures-
investor-relations.pdf
Policy for Determining
Materiality for Disclosures
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 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/policy-determining-
materiality-disclosures.pdf
Compensation Recovery Policy
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 revised and adopted
effective April 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/compensation-
recovery-policy.pdf
Nomination
and Remuneration Policy
This policy formulates the criteria for determining qualifications,
competencies, positive attributes and independence for the appointment of
a director (executive / non-executive) and also the criteria for determining
the remuneration of the directors, KMP, senior management and other
employees. The policy was revised and adopted effective April 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/nomination-
remuneration-policy.pdf
Infosys Integrated Annual Report 2023-24
95
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 April 18, 2024.
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 governance framework for
them. The policy was revised and adopted effective April 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/material-subsidiaries-policy.pdf
Related Party
Transactions Policy
The policy regulates all related party transactions of the Group. The policy
was revised and adopted effective April 18, 2024.
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. The policy was revised and adopted effective April 18, 2024.
https://www.infosys.com/investors/
corporate-governance/documents/document-
retention-archival-policy.pdf
Board Diversity Policy
The policy sets out the approach to diversity within the Board of the
Company. The policy was revised and adopted effective April 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/board-diversity-policy.pdf
Enterprise Risk
Management Policy
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 18, 2024.
https://www.infosys.com/investors/corporate-
governance/documents/enterprise-risk-
management-policy.pdf
Infosys Integrated Annual Report 2023-24
96
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 and AI journey.
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).
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.
I.
Industry structure and developments
Fiscal 2024 saw the impact of policy tightening and a reduction
in inflation in most of the markets we operate in. Global GDP
is estimated to have grown at 3.2% in CY 2023, compared to
3.5% in CY 2022(1). Worldwide IT spending on software and IT
services was ~US$2.3 trillion(2) in CY2023 while IT services saw
an estimated total spending of US$1.4 trillion. We expect the
client spending and investments to move towards Artificial
Intelligence (AI) and generative AI (gen AI) in the near term.
These investments are expected to be crucial during this period
of economic uncertainty.
There is a new wave of dynamism in technologies. The industry
is feeling the pressure to build AI strategies and stay ahead.
We saw generative AI starting to reshape the industry in fiscal
2024. 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, aided
by generative AI. With our leadership position in AI, we
believe we are well-positioned to take advantage of these
market opportunities.
For more information, refer to Our business context section of the
Integrated Annual Report.
(1) Nasscom, World Economic Outlook, IMF, April 2024
(2) Gartner
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 processes and systems
rapidly in the AI era. This needs an understanding of new
technologies and new ways of working, and also appreciation of
AI 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 an AI future.
Our strengths
We believe that we are well-positioned for the principal
competitive factors in our business. With more than 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 AI transformation as we have built our
own AI-first strategy.
Our competition
We see intense competition in traditional services, a rapidly
changing marketplace and the emergence of new players in
niche technology areas.
We have invested in building proprietary intellectual property in
software platforms and products. We have continued to invest
in Infosys Cobalt™ – a set of services, solutions and platforms
for enterprises to accelerate their cloud journey and Infosys
Topaz – a set of AI-first services, solutions and platforms using
generative AI technology.
For details, refer to the Strategy and Our Business Context sections
of 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 on account of
shares issued on exercise of stock options.
2. Other equity
The movement in retained earnings was on account of profit
earned during the year and payment of dividends. The increase
in securities premium is 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.
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 utilized 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, the carrying value of goodwill as on
March 31, 2024 is ₹7,303 crore. During the previous year, the
carrying value of goodwill was ₹7,248 crore.
On a consolidated basis, the carrying value of intangible assets as
on March 31, 2024 is ₹1,397 crore, whereas on March 31, 2023, it
was ₹1,749 crore. Refer to Note 2.4.2 of the Consolidated financial
statements for further details.
Management’s discussion and analysis
Statutory reports
Infosys Integrated Annual Report 2023-24
97
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 innovations
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 and securities 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
carrying 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 part of our
risk management program.
B. Trade receivables
Days Sales Outstanding (DSO) was 71 days for the year ended
March 31, 2024, compared to 62 days in the previous year.
C. Cash and cash equivalents
Our cash and cash equivalents comprise deposits with banks
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
of time. Foreign currency forward and options contracts are
entered into to mitigate the risk of changes in exchange rates on
foreign currency exposures. The counterparty for these contracts
is generally a bank.
6. Other assets
Unbilled revenues are classified as non-financial asset where
the right to consideration is dependent on completion of
contractual milestones. Withholding taxes and others represent
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 liability comprises of deferred tax liabilities
less deferred tax assets. Deferred tax liability is primarily on
account of temporary difference in the Special Economic Zone
Re-investment Reserve, intangibles from business combination,
interest receivable on income tax refund for orders received
partially offset by deferred tax asset on property, plant and
equipment, 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
acquisitions to purchase the corresponding minority stake.
Accrued expenses represent amounts accrued for other
operational expenses. 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.
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. 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.
Infosys Integrated Annual Report 2023-24
98
Management’s discussion and analysis
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 buildings
taken on lease in certain locations outside India.
IV. Results of our operations
For details about results of our operations, refer to 'Results of our operations and state of affairs' section in the Boards' report.
During fiscal 2024, the Company initiated Project Maximus, a comprehensive margin expansion program structured across 5 pillars –
Value-based selling; Efficient pyramid; Lean, automation & gen AI; Improving critical portfolios and Reducing indirect costs.
1. Revenue
The growth in our revenues in fiscal 2024 from fiscal 2023 is as follows:
(In ₹ crore)
Particulars
Standalone
Consolidated
2024
2023
% change
2024
2023
% change
Revenue
1,28,933
1,24,014
4.0
1,53,670
1,46,767
4.7
The increase in revenues was primarily attributable to an increase
in revenue from software services, large deal wins, and increase
in realization including pricing.
Revenue growth in reported terms includes the 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 2024 is US$ 18,562
million, a growth of 1.9%. Our revenues for fiscal 2024 in constant
currency grew by 1.4%.
We added 385 new customers (gross) during fiscal 2024 as
compared to 458 new customers (gross) during fiscal 2023.
On a consolidated basis, for the year ended March 31, 2024,
approximately 97.5% were export revenues whereas 2.5% were
domestic revenues, while for the year ended March 31, 2023,
97.4% were export revenues whereas 2.6% 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 decreased as a percentage of
revenue from 61.6% in fiscal 2023 to 60.2% in fiscal 2024 on a
standalone basis, and from 58.0% in fiscal 2023 to 56.4% in fiscal
2024 on a consolidated basis. The cost of efforts has decreased
mainly on account of decrease in sub‑contractors cost and on
account of improved utilization.
Third-party items bought for service delivery to clients include
software and hardware, which are integral to our overall service
delivery to clients.
Selling and marketing expenses
The selling and marketing expenses on standalone basis and
consolidated basis have increased as a percentage of revenue
during fiscal 2024 to 4.4% from 4.0% in fiscal 2023, and 4.5%
during fiscal 2024 from 4.3% in fiscal 2023, respectively, mainly
on account of increase in employee benefit costs and branding
and marketing expenses.
General and administration expenses
The general and administration expenses on standalone basis
have reduced as a percentage of revenue during fiscal 2024 to
4.2% from 4.3% in fiscal 2023, mainly on account of a decrease in
consulting and professional expenses and remained unchanged
on consolidated basis during fiscal 2024 at 4.9%.
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, foreign exchange gain / loss on translation
of other assets and liabilities and interest on income tax refund.
Other income for fiscal 2024 includes interest (pre-tax) on
income tax refund of ₹1,933 crore on account of orders received
under Sections 250 and 254 of the Income-tax Act, 1961, from
the income tax authorities in India for certain assessment years.
In fiscal 2024, the Company received ₹2,976 crore of dividend
from our subsidiaries, which is reflected in the Standalone
financial statement.
Interest income in fiscal 2024 has increased as compared to fiscal
2023 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.
Infosys Integrated Annual Report 2023-24
99
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, 2024, and March 31, 2023 is 34.94%.
Particulars
Standalone
Consolidated
2024
2023
2024
2023
Income tax expense (In ₹ crore)
8,719
8,375
9,740
9,214
Effective tax rate (In %)
24.3
26.5
27.1
27.7
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.
Provision for tax includes net tax reversal of ₹38 crore on
account of orders received under Sections 250 and 254 of
the Income-tax Act, 1961, from the income tax authorities in
India for certain assessment years. These orders confirmed the
Company's position with respect to tax treatment of certain
contentious matters and upon resolution of the disputes , an
amount aggregating to ₹1,628 crore has been reduced from
contingent liabilities.
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 statement in this
Integrated Annual Report.
Business segments – Consolidated
(In ₹ crore)
Particulars
Financial
Services
Retail
Communication
Energy, Utilities,
Resources and
Services
Manufacturing
Hi-Tech
Life
Sciences
All other
segments
Total
Segmental revenues
2024
42,158
22,504
17,991
20,035
22,298
12,411
11,515
4,758
1,53,670
2023
43,763
21,204
18,086
18,539
19,035
11,867
10,085
4,188
1,46,767
Growth (%)
(3.7)
6.1
(0.5)
8.1
17.1
4.6
14.2
13.6
4.7
Segmental operating income
2024
9,324
6,882
3,688
5,523
4,197
3,153
2,898
760
36,425
2023
10,843
6,396
3,759
5,155
3,113
2,959
2,566
339
35,130
Growth (%)
(14.0)
7.6
(1.9)
7.1
34.8
6.6
12.9
124.2
3.7
Segmental operating margin (%)
2024
22.1
30.6
20.5
27.6
18.8
25.4
25.2
16.0
23.7
2023
24.8
30.2
20.8
27.8
16.4
24.9
25.4
8.1
23.9
The following graph sets forth our revenue by geography:
(In ₹ crore)
(60.1%)
(9.8%)
(27.6%)
(2.5%)
Growth in % in 2024
North America – 1.9
Europe – 12.2
India – 0.5
Rest of the World – 4.2
Total growth 4.7%
92,411
15,111
1,53,670
3,881
42,267
(61.8%)
90,724
(9.9%)
14,507
(2.6%)
3,861
(25.7%)
37,675
Total
1,46,767
Total
2024
2023
Overall segment profitability has decreased primarily on account
of the increase in employee compensation, higher cost of third-
party items bought for service delivery to clients as part of deals,
a one-off impact arising from contract renegotiation / rescoping
and cyber impact largely offset by benefit from Project Maximus
through improved utilization, decrease in cost of technical sub-
contractors etc., and currency benefits.
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.
Infosys Integrated Annual Report 2023-24
100
Management’s discussion and analysis
Our cash flows are robust. Our operating cash flows have
increased in fiscal 2024 as compared to fiscal 2023 mainly on
account of increase in net profit adjusted for non-cash items
partially offset by higher income tax payments.
Consolidated cash and investments of ₹39,005 crore
comprise cash and cash equivalents, current and non-
current investments excluding investments in equity and
preference shares and others.
Capital Allocation Policy
Refer to the Board’s report in this Integrated Annual Report
for details on our Capital Allocation Policy reviewed and
approved on April 18, 2024.
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
2024
2023
2024
2023
Market capitalization
to revenues (times)
NA
NA
4.0
4.0
Price / Earnings
(times)
NA
NA
23.6
24.8
Days Sales
Outstanding (DSO)(1)
–
–
71
62
Cash and investment(2)
as a % of total assets
26.6
22.2
28.3
24.9
Revenue growth (%)
4.0
19.3
4.7
20.7
Operating margin (%)
22.3
22.5
20.7
21.1
Net profit margin (%)
21.1
18.8
17.1
16.4
Basic EPS (`)
65.62
55.48
63.39
57.63
(1) The Company does not track DSO at a standalone level.
(2) Includes cash and cash equivalents and investments, excluding
investments in equity, preference shares, compulsorily convertible
debentures and others.
Ratios where there has been a significant change from fiscal
2023 to fiscal 2024
Revenue growth for fiscal 2024 has come down as compared to
revenue growth for fiscal 2023 across all operating segments
and segment-level details have been explained in the
relevant section above.
•
The details of return on net worth at standalone and
consolidated levels are as follows:
Particulars
Standalone
Consolidated
2024
2023
2024
2023
Return on net
worth (%)
36.6
34.0
32.1
32.0
Return on net worth is computed as net profit by average
net worth. Net profit increased from ₹24,095 crore to
₹26,233 crore on a consolidated basis and from ₹23,268
crore to ₹27,234 crore on a standalone basis. Average net
worth has increased in line with the net profit increase
adjusted for dividends.
V. Outlook, risks and concerns
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.
We have provided the details of Infosys ERM framework, key and
emerging risks along with mitigation in the risk management
report section of this integrated annual report. The list of risk
factors which we track for our business are covered in our 20-F
filing available at https://www.infosys.com/investors/reports-
filings/annual-report/annual-reports.html.
VI. Internal Financial Control Systems and their
adequacy
Infosys has aligned its current systems of internal financial
control with the requirement of Companies Act, 2013, based on
criteria established in Internal Control – Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). The Internal Control –
Integrated Framework (the 2013 framework) is intended to
increase transparency and accountability in an organization’s
process of designing and implementing a system of internal
control. The framework requires a company to identify and
analyze risks and manage appropriate responses.
Internal financial control systems include the design,
implementation and maintenance of adequate internal financial
controls that are operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to
company’s policies, safeguarding of its assets, prevention and
detection of frauds and errors, accuracy and completeness of
the accounting records, and the timely preparation of reliable
financial information, as required under the Act.
Infosys Integrated Annual Report 2023-24
101
In designing and evaluating our disclosure controls and
procedures, management recognizes that any controls and
procedures, no matter how well conceived and operated,
can only provide reasonable assurance that the objectives
of the disclosure controls and procedures are met. Based on
their evaluation as of the end of the period covered by this
Integrated Annual Report , our CEO and CFO have concluded
that our disclosure controls and procedures were effective to
provide reasonable assurance that the information required
to be disclosed in filings and submissions, is recorded,
processed, summarized, and reported within the time periods
specified, and that material information related to us and our
consolidated subsidiaries is accumulated and communicated to
management, including the Chief Executive Officer and Chief
Financial Officer, as appropriate to allow timely decisions about
required disclosure.
Deloitte Haskins & Sells LLP, the statutory auditors of Infosys
Limited, has audited the financial statements included in
this Integrated Annual Report, and as part of their audit, has
issued their report on the company’s internal financial controls
(as defined in Section 143 of Companies Act, 2013), on the
effectiveness of our internal financial controls over consolidated
financial statement as at March 31, 2024
Infosys Limited has appointed Ernst & Young LLP to oversee
and carry out internal audit of its activities. The audit is based
on an internal audit plan, which is reviewed each year in
consultation with the statutory auditors and approved by
the Audit Committee.
The CEO and CFO certification provided in the CEO and CFO
Certification section of the Integrated Annual Report discusses
the adequacy of our internal control systems and procedures.
VII. Material developments in human resources /
industrial relations, including number of people
employed
Our culture and reputation as a leader in consulting, technology,
outsourcing and next-generation digital services enable us to
attract and retain some of the best talent.
Human resources management
Infosys is a people company that understands the immense
potential of technology and strives to create a world-class
employee experience. The company has implemented various
initiatives to inspire and enable its employees to find purpose
and make an indelible impact through meaningful work and
passionate teams, ensure that they continuously learn and
grow in their careers and shape the collective future, and create
opportunities for every employee to navigate further, powered
by the culture and values of Infosys.
This is true at each stage of career for our employees. A strong
focus on leadership development has ensured that we have a
robust leadership bench at all times, encouraging leaders from
within the Company to move up and take on new challenges.
While fiscal 2024 saw some leadership exits, it also saw the
emergence of a number of internal leaders not only ensuring
business continuity, but also helping us close the year with the
highest-ever large deal signings of US$17.7 billion.
Adapting to the changing work environment, Infosys has
adopted a hybrid model of work that balances employee
flexibility and business requirement. Leveraging technology and
automation, it has improved workforce efficiency, engagement,
transformation, and innovation. Recognizing and rewarding its
employees for their performance, excellence, and leadership,
it has fostered a culture of diversity, equity, and inclusion,
and ensured a safe and positive work environment for all
its employees. Infosys has also received several awards and
accolades for its best-in-class HR practices and processes.
For more details on the material developments in human
resources / industrial relations, please refer to the link
https://www.infosys.com/sustainability/documents/infosys-
esg-report-2023-24.pdf
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 and encourages a culture of
“speak up”. Employees also have access to several forums
where they can highlight matters or concerns faced at the
workplace for effective remediation. 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 objectively while ensuring timely action and closure.
In matters that entail a detailed investigation, the process
ensures fairness for all involved, with an opportunity to be heard,
present facts and any material evidence before a neutral panel.
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 building the
culture of ‘speak up’. Employees can raise a complaint on the
HEAR webapp or InfyMe mobile application or write to HEAR@
infosys.com. HEAR adopts a decentralized model and addresses
employee concerns in a structured manner with appellate forums
for workplace grievances that have not been duly heard at the
preliminary level by the Managers (or) line HR.
ASHI
The Company’s assurance to its employees of providing a
harassment-free workplace is reflected in our key initiative, ASHI
(Anti-Sexual Harassment Initiative). As per the Prevention of
Sexual Harassment Act in India, the Company has constituted
Internal Committees (IC) in all the development centers with
the ambit of the regulatory jurisdiction, 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
Company’s policy on anti-harassment and anti-discrimination
at workplace. 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.
Complaints are taken up for a formal redressal process in line
Infosys Integrated Annual Report 2023-24
102
Management’s discussion and analysis
with the POSH Act and the Company’s policy on anti-harassment
as applicable. 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.
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 in India
currently. Emergency / safety cards with important contact
numbers are also handed over to all Infosys employees and
employees of such third parties.
Whistleblower Policy
The Company has formulated the Whistleblower Policy in
line with the mandated regulatory requirements – Sarbanes-
Oxley Act (SOX), 2002 & Companies Act, 2013 – which
mandates listed companies to establish a “vigil mechanism” for
reporting genuine concerns.
The forum is predominantly for the receipt, retention and
treatment of complaints regarding matters of probable
discrepancies in accounting, internal accounting controls or
auditing, and also enables anonymous reporting by employees.
While the Whistleblower Policy and the forum is administered
and managed by the Office of Integrity and Compliance,
complaints (anonymous or otherwise) pertaining to deviations in
workplace policies / processes involving employees are reviewed
in tandem by the Employee Relations Department.
Human rights
Infosys is a signatory to the United Nations Global Compact
(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.
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. 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: These are prerequisites for conducting
business responsibly. Ozone, Infosys’ Health, Safety
and Environmental Management System (HSEMS), has
evolved into a robust management system guided by the
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, 2024, the Group employed 3,17,240 employees, of
which 2,99,814 were professionals involved in service delivery to
clients, including trainees.
We constantly attract and hire a multi-dimensional workforce
across all IT specializations. We have built robust relationships
with top institutions globally and recruit students who have
consistently shown high levels of achievement. We have been
globally recognized once again for our HackWithInfy initiative,
an online coding contest, which also helps us attract the best
coders. We have continued upscaling our InfyTQ platform,
which brings the best of our Mysuru training to the hands of the
learners across the country.
Following the COVID-19 pandemic, we evolved from
a virtual-only mode to a hybrid model of virtual and
in-person recruitment.
We launched the RestartWithInfy program to bring women who
have had to drop out of active employment in the IT industry
back to the mainstream. Through this successful initiative, we
have hired 517 women into the Infosys ecosystem.
During fiscal 2024, we received 24,36,929 employment
applications, interviewed 1,94,367 applicants and extended
offers of employment to 26,975 applicants. These statistics do
not include our subsidiaries.
Education, training and assessment (ETA)
Infosys continues to invest in developing human potential for the
organization, and the world at large. We are now experiencing
the play of Human + AI in multiple fields, including learning.
This technology wave gives us the ability to hyper-personalize
learning, at scale, across all our learning offerings. These efforts
have helped us garner external accolades from Brandon Hall, ATD
Best, and Training Apex.
The Foundation Training Program, anchored across India, Mexico,
the US, the UK, Canada, Germany, Australia, Singapore, and
Japan, enables newly on-boarded entry-level hires to transform
into corporate professionals. Comprising over 50 technology
streams, the curriculum has kept pace with the dynamic business
requirements and the preferred pedagogical approach of
Infosys Integrated Annual Report 2023-24
103
the current generation of talent. Generative AI and prompt
engineering courses have been introduced to ensure freshers are
adept in the new skills.
Our Continuous Education Program is aimed at reskilling /
upskilling our existing employees with the twin objectives of
increasing fulfilment of skilled talents in client projects and
enriching their expertise in next-generation digital technologies
and methodologies, including gen AI technologies. We provide
online self-learning, instructor-led virtual training opportunities
along with in-person classroom training opportunities to our
employees. Bridge programs help employees with training and
internship opportunities to switch to a new career field, while
retaining them within the organization.
Lex, our in-house learning platform, offers over 18,000
curated courses, including over 13,000 courses procured
from vendor partners both for enterprise consumption and
niche communities with specific knowledge requirements.
Around 45,000 employees use Lex on weekdays and around
8,500 employees use it on weekends, with an average
learning time of 40 minutes.
Infosys Wingspan, our configurable talent transformation
platform for clients, is used by several global organizations for
their talent transformation programs.
Infosys Springboard aims to empower over 10 million
people with digital and life skills by 2025. This program, led
by a dedicated team of experts collaborating globally with
curriculum partners, non-profits, and a global network of leading
educational institutions. More than 14,800 learning resources
are available and about 7.9 million learners across the world are
actively consuming content on Infosys Springboard.
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 continues to scale and evolve our capabilities
in Agile, DevSecOps and Site Reliability Engineering, apart from
driving the shift from project to product and platform-led ways
of working using our product-centric value delivery approach.
The Quality team also consults several clients in transforming
their ways of working to be faster, better, and efficient.
Today, clients are looking at maximizing their return from
investments in digital technologies leveraging the power of AI.
This requires multiple capabilities across product-based working,
user experience design, data, advanced engineering, and digital
talent enablement to come together seamlessly in the context
of a digital transformation program. The evolved Infosys digital
operating model for an AI-first enterprise was released last year,
to address this need.
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, leveraging AI and Gen AI.
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 22301, ISO 20000,
AS 9100 and ISO 27701.This includes the Infosys group's transition
to the new information security standard ISO 27001 : 2022.
Infosys is the first IT company to comply with and get certified
for ISO 42001:2023 standard for AI management systems. The
Company 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 AI and has received
an independent auditors’ assurance compliance report. Six of
our IT hubs based in the US were certified for the first time for
ISO 27001 Information security, ISO 27701 Data Privacy, and ISO
22301 Business continuity management system.
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104
Management’s discussion and analysis
2. Infosys Center for Emerging Technology Solutions (iCETS)
H3 trends, LPaaS & CoE
Living Labs and Innovation Hubs
Technology and domain platforms
Infosys Innovation Network (IIN)
Analyze new technologies and
business trends (H3), and develop
thought leadership
Help Infosys amplify innovation by
creating platforms / IP / accelerators
and software-led offerings
An ecosystem of startups, clients,
hyperscalers and universities to
supply the best innovations from
around the world
Establish strategic innovation tie-ups
with clients by building emerging
technology-driven solutions through
Living Labs & Innovation Hubs
iCETS
InspireNEXT
IncubateNEXT
ServiceNEXT
ConnectNEXT
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, leveraging 'New Emerging and eXploratory
Technologies’ (NEXT). There are four distinct dimensions across
which iCETS delivers innovation.
InspireNext: A set of capabilities and offerings designed to help
discover new possibilities of doing business. The Listening Post
as a Service (LPaaS) acts as signal catcher of new business and
technology trends. We have helped over 50 clients to detect
early signals of evolving phenomena from across innovation
centres across the world. The insights gathered from our
LPaaS program and our clients help us to set up and develop
Centers of Excellence (CoE) for technologies such as AI & gen AI,
quantum computing, cybersecurity, mixed reality, etc. These
CoE experiment with and develop possible and demonstrable
solutions for our clients, e.g. an AI benchmarking platform,
logistics optimization using quantum technologies, etc.
ServiceNext: Leverages newly-developed capabilities and IP to
help differentiate our service offerings or create new offerings for
our clients. e.g. LEAP for AI led maintenance projects, CyberNext
for cybersecurity management for our clients, iQE for quality
engineering services, IDW for data readiness for AI, etc. Each
of these platforms gives Infosys an edge by providing efficient
services and helping clients to reduce costs and risks while
adopting new solutions. We have over 1,000 client deployments
of our IP across our portfolio. Be The Navigator (BTN) is our
flagship program for grassroot innovation. It is a structured
and scalable program for our clients to leverage our innovation
expertise and infrastructure to make improvements each day.
ConnectNext: Brings together innovations from an external
ecosystem of hyperscalers, startups and universities. The Infosys
Innovation Network (IIN) today nurtures over 300 startups across
technologies. Its collaboration with hyperscalers and product
players helps to differentiate Infosys' services and platforms,
including in AI, data readiness, immersive experiences, space,
semiconductor etc. With these startup-led solutions, we
have helped over 700 clients to discover the best innovations
from around the world.
IncubateNext: Provides our clients with rapid and agile
innovation capabilities. Infosys internal experts, IP and
external partnerships like startups bring significant scope for
experimentation, scaling of ideas and increased velocity of
innovation. Infosys Living Labs has helped over 100 clients
in adopting new technologies like AI, gen AI, mixed reality,
customer experience, etc. Most of our innovations are also made
available for wider learnings via our Innovation Hubs. With over
130 different technology experiences, we get our clients from
different industries to understand the potential and apply these
innovations to their business opportunities.
3. Branding
Brand Infosys is a key intangible asset for the Company, counted
among the world’s Top 100 brands, and recognized as the
fastest growing IT services brand globally. It is nurtured by over
3,17,000 of our purpose-driven associates 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-first, cloud-first, and AI-
first partner of choice for enterprises navigating their business
transformation. It is built around the premise that the experience
we have gained, over 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-first 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
Infosys Integrated Annual Report 2023-24
105
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, The Economist
Group, Financial Times and Handelsblatt Media Group further
accentuate this position. We participate in premier business and
industry events around the world, while also organizing our own
signature events and CXO roundtables. Confluence, our flagship
client event series across the US, Europe and APAC, is rated highly
by our clients and industry partners.
4. Client base
Our client-centric approach continues to bring us high levels
of client satisfaction. We, along with our subsidiaries, added
385 new clients, including a substantial number of large global
corporations. Our total client base at the end of the year stood
at 1,882 . The client segmentation, based on the last 12 months’
revenue for the current and previous years, on a consolidated
basis, is as follows:
Clients
2024
2023
100 million dollar +
40
40
50 million dollar +
83
75
10 million dollar +
315
298
1 million dollar +
959
922
5. Infosys Leadership Institute
Continuing its award-winning streak, the Infosys Leadership
Institute (ILI) won the prestigious Society of Human Resources
(SHRM) Excellence award for Developing Leaders of Tomorrow
in fiscal 2024. This was accompanied by the highest internal
recognition of Infosys Awards for Excellence for its IamtheFuture
program focused on leadership diversity and Constellation
program focused on strengthening the leadership succession
pool. As a part of the Constellation program, the high-potential
leaders continued to work on the organizational strategic
projects, bolstered by a certificate program on Organizational
Change Leadership from MIT.
In addition to strengthening the succession pool through the
Constellation program, there were specific programs designed
to augment succession strength across the organization. With
technology-led disruption becoming all-pervasive, particularly
driven by GenAI, ILI curated a business-oriented certification
program on AI by Kellogg. More than 400 leaders have
enrolled in the program and this focus will continue in fiscal
2025. Leadership engagement and development continue to
strengthen with about 95% of our leaders completing at least
one significant leadership program this year, with more than
70% completing a certification program from an Ivy League
institution. Our leaders invested about 10,000 learning days
equivalent to strengthen their leadership capabilities.
The third phase of the highly-acclaimed IamtheFuture program
commenced in fiscal 2024, with a focus on building higher-
order organizational and leadership capabilities, culminating in
projects designed for business impact. More than 500 women
leaders have completed various phases of this program, earning
the ILI-Stanford GSB certificate.
6. Infosys Knowledge Institute
The Infosys Knowledge Institute (IKI) is the business research and
thought leadership arm of Infosys. 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 over 600 clients and
created over 1,200 assets since inception. For more information,
visit 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”. Our vision continues to reflect how ESG is integral
to Infosys’ sustainable business performance. We continue to be
carbon neutral across Scope 1, 2 and 3 emissions for the fifth year
in a row. We have expanded our 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. Our commitment to nurturing greater inclusivity
and strengthening our gender-diverse workforce continues to
grow from strength to strength.
An empowered, diverse and inclusive Board continues to sharpen
stakeholder focus by bringing their interests to the fore. Our
data privacy and information management efforts continue to
receive global accolades.
For more information about our ESG Vision and ambitions, read
our ESG Vision 2030 document at https://www.infosys.com/
content/dam/infosys-web/en/about/corporate-responsibility/
esg-vision-2030/index.html.
For information on the progress of our ESG ambitions, read
the ESG report at https://www.infosys.com/sustainability/
documents/infosys-esg-report-2023-24.pdf
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106
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 (“the Company”), 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:
Infosys values: C-LIFE
Client
value
Leadership
by example
Integrity and
transparency
Fairness
Excellence
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
G20/OECD
Principles of
Corporate
Governance
Disclosure and transparency
The responsibilities of the board
Sustainability and resilience
1
2
3
4
5
6
Infosys corporate governance framework
Build simple and transparent processes
driven by business needs of all stakeholders
Effective corporate governance
Lead by example by ensuring independence of the Board
and effectiveness of the Management
Responsible leadership
Safeguard the shareholder’s capital
as trustee, and not as its owner
Board as a trustee
Ensure transparency and maintain a high level of integrity
Communicate frequently with stakeholders, including
clients, employees, shareholders and stock markets
Satisfy both the spirit and the letter of
the law in all our actions and disclosures
Legal compliance
Be objective and ethical, and deliver the best
to earn trust and respect from our stakeholders
Fairness and excellence
Integrity and
transparency & Relationship
with stakeholders
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.
Corporate governance report
Statutory reports
Infosys Integrated Annual Report 2023-24
107
Board as a trustee
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.
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 fulfil 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.
Independent directors
We abide by the definitions of an independent director, as laid
down under the Companies Act, 2013 (“the Act”) and the SEBI
(Listing Obligations and Disclosure Requirements) Regulations,
2015 (“the Listing Regulations”), as amended, along with the
definitions 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 fulfil
the conditions specified in the Act, the Listing Regulations, NYSE
listing manual and are independent of the Management.
Board composition
The Company recognizes and embraces the importance of a
diverse Board in its success. We believe that a truly diverse Board
will leverage differences in thought, perspective, regional and
industry experience, cultural and geographical background,
age, ethnicity, race, gender, knowledge, 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.
As on March 31, 2024, the Board comprised of nine members,
consisting of a non-executive and non-independent Chairman,
Chief Executive Officer & Managing Director (CEO & MD), and
seven independent directors.
The profile 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
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 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.
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108
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
< 2 years
> 4 years
Size and composition of the Board as on March 31, 2024
Tenure of the directors
Non-executive and
non-independent director
Executive director
Independent directors
D. Sundaram
Nitin Paranjpe
Michael Gibbs
Bobby Parikh
Chitra Nayak
Govind Iyer
Helene Auriol Potier
Nandan M. Nilekani
Salil Parekh
Average tenure (in years)
Executive directors
Independent directors
Non-executive and
non-independent director
The Board
6.2
3.8
3.1
6.6
Male directors
77.78%
Female directors
22.22%
Indian directors
55.56%
Foreign national
directors
44.44%
2 - 4 years
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. 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.
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 towards the Company.
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.
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.
Corporate governance report
Infosys Integrated Annual Report 2023-24
109
Responsible leadership
Leading by example is a key tenet of corporate governance at Infosys.
Both the Board and the Management work together to set the highest
standards of responsible leadership.
Responsibilities of the Board leadership
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.
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.
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110
Key Board qualifications, expertise and attributes
The table below summarizes the key qualifications, skills, and attributes that 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
Extensive leadership experience at 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 are provided in Infosys Board of Directors section in the Integrated Annual Report.
Corporate governance report
Infosys Integrated Annual Report 2023-24
111
Selection and appointment of new directors
The Board delegates the screening and selection process to the
Nomination and Remuneration Committee. It presents a diverse
slate of recommendations of eligible candidates to the Board for
their approval as per the criteria laid down in Nomination and
Remuneration Policy. Subsequently, the Board recommends and
place it before the shareholders for their approval.
Succession planning
The Nomination and Remuneration Committee works with
the Board on the leadership succession plan to ensure orderly
succession in appointments to the Board and to senior
management positions. The Company strives to maintain
an appropriate balance of skills and experience within the
organization and the Board in an 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-members2024.pdf.
Non-executive and independent directors of the Board are
familiarized through engagements such as:
Strategy retreat: We organize an annual 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 provides
the Board members a platform to bring their expertise to various
strategic initiatives, while also giving an opportunity for them to
understand detailed aspects of execution and challenges relating
to the specific theme.
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, an overview of the execution plan and
interact closely with the senior leadership of the Company.
During the year, the following trainings were
organized for the Board:
Generative Artificial Intelligence (AI) & Risk management:
This session covered topics such as i) Emerging AI technologies;
ii) Corporate strategies to tackle AI; iii) Market needs and
global macro trends; iv) Understanding neural and deep
neural networks; v) Regulatory landscape and examples
across jurisdictions.
Governance and crisis management:
This session covered topics such as crisis management and
related regulatory landscape. It covered practical challenges and
learnings from other corporates and showcased the impact of
effective and ineffective management of crisis. The significance
of crisis preparedness, reviewing risks and subsequent challenge
management were the highlights.
Environmental, Social and Governance:
This course covered topics such as global outlook on ESG risks
and opportunities, global ESG (reporting) frameworks and
regulatory landscape, potential focus areas for future, and
insights into leading ESG practices, etc.
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.
During the year, one of the independent directors attended the
National Association of Corporate Directors (NACD) Cybersecurity
event. The training focused on strategies necessary to effectively
oversee cybersecurity, protect sensitive data, and ensure the
resilience of their businesses in the face of cyber threats.
The details of the training programs attended by the Board
members in fiscal 2024 are as follows:
Name of the director
No. of training hours attended
during fiscal 2024
Nandan M. Nilekani
5.5
Salil Parekh
7.0
D. Sundaram
7.0
Michael Gibbs
7.0
Uri Levine(1)
1.5
Bobby Parikh
7.0
Chitra Nayak
10.0
Govind Iyer
7.0
Helene Auriel Potier(2)
5.5
Nitin Paranjpe(3)
5.5
Total hours
63.0
(1) Retired as Independent Director effective April 19, 2023;
(2) Appointed as Independent Director effective May 26, 2023;
(3) Appointed as Independent Director effective January 1, 2024
Infosys Integrated Annual Report 2023-24
112
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
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.
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.
Board attendance
Name of the director
Attended
AGM on
June 28,
2023
No. of Board meeting
Held
during
tenure
Attended
%
1
2
3
4
5
6
April 12-
13, 2023
June 26,
2023
July 19-
20, 2023
October
11-12,
2023
December
11, 2023
January
10-11,
2024
Nandan M. Nilekani
L
L
6
4
67
Salil Parekh
6
6
100
D. Sundaram
6
6
100
Michael Gibbs
6
6
100
Uri Levine(1)
NA
NA
NA
NA
NA
NA
1
1
100
Bobby Parikh
6
6
100
Chitra Nayak
6
5
83
Govind Iyer
(2)
L
6
4
67
Helene Auriol Potier(3)
NA
L
5
4
80
Nitin Paranjpe(4)
NA
NA
NA
NA
NA
NA
1
1
100
% Attendance
100
88
63
100
100
75
100
Present
Attended through video call
Attended through call
L: Leave of absence
Attendance of directors during fiscal 2024
During the year, six Board meetings were held.
(1) Retired as Independent Director effective April 19, 2023
(2) Attended physically on April 12, 2023 and through VC on April 13, 2023
(3) Appointed as Independent Director effective May 26, 2023
(4) Appointed as Independent Director effective January 1, 2024
Corporate governance report
Infosys Integrated Annual Report 2023-24
113
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, 2024
Corporate Social
Responsibility
Committee
Environmental, Social
and Governance
Committee
Risk Management Committee
Govind Iyer
D. Sundaram
Michael Gibbs
Stakeholders
Relationship
Committee
Michael Gibbs
Bobby Parikh
Chitra Nayak
Chitra Nayak
D. Sundaram
Cybersecurity Risk Sub-committee
Nomination and
Remuneration
Committee
Chairperson
Member
D. Sundaram
Michael Gibbs
Bobby Parikh
D. Sundaram
Michael Gibbs
Govind Iyer
Nitin Paranjpe
Govind Iyer
Chitra Nayak
Helene Auriol Potier
D. Sundaram
Michael Gibbs
Bobby Parikh
Govind Iyer
Chitra Nayak
Helene Auriol Potier
Nitin Paranjpe
Michael Gibbs
Chitra Nayak
Govind Iyer
Audit Committee
The Board
Infosys Integrated Annual Report 2023-24
114
Audit Committee
Bobby Parikh
Chairperson and Financial expert
The Audit Committee (“the Committee”) comprises only independent directors. As on March 31, 2024, 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.
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
Corporate governance report
Infosys Integrated Annual Report 2023-24
115
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
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 eight times during the year, which is more
than the requirement of the Companies Act, 2013 and the
Listing Regulations.
Composition and attendance
100%
Attendance
100%
Independence
3
Members
8
Meetings
Attendance details of the Audit Committee
Audit Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
5
6
7
8
April
12-13,
2023
June
26,
2023
July
19-20,
2023
October
11-12,
2023
December
11, 2023
December
13-14,
2023
January
10-11,
2024
March
11-12,
2024
Bobby Parikh
8
8
100
D. Sundaram
8
8
100
Michael Gibbs
8
8
100
% Attendance
100
100
100
100
100
100
100
100
Present
Attended through video call
L: Leave of absence
Audit Committee report for the year ended March 31, 2024
Key highlights of the 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.
Q
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 independence of the auditors, the internal controls, the integrity
of the Company’s financial reporting process, the adequacy of disclosures in the financial statements and other matters as the
Committee deemed necessary
Q
Evaluated internal financial controls and risk assessment and management systems and reviewed the responsibilities, functions,
qualifications, performance and adequacy of internal audit function
Q
Undertook an annual performance evaluation of its own effectiveness
A
Reviewed with independent auditors the nature and scope of the audit, reviewed the audit engagement and internal quality
control procedures to ascertain adequacy and appropriateness
A
Reviewed the Management’s discussion and analysis of the financial condition and results of operations
A
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
A
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
Infosys Integrated Annual Report 2023-24
116
Key highlights of the activities of the Committee during the year
Frequency
Reviewed the annual performance assessment of statutory auditors, internal auditors and the secretarial auditors
A
Recommended appointment of internal auditors and secretarial auditors
A
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
P
Helped the Board monitor the Management’s financial reporting process
P
Reviewed the process adopted by the Management for testing impairment of assets including financial assets and goodwill
A
Reviewed the significant transactions of the subsidiaries
P
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
P
Recommended acquisitions, investments, divestment and reviewed the performances of the acquired entities and end-utilization
of intercorporate loans and advances
P
Monitored and reviewed internal controls and mechanism to track the compliances and periodical reporting to SEBI under insider
trading regulations and also reviewed compliance with the Company’s Code of Conduct and Ethics, reviewed the legal and
compliance updates in addition to the investigations of the whistleblower complaints received during the year
Q
Reviewed and recommended to the Board on various policies as part of annual policy review process
A
Took note of disclosures by promoters under Regulation 31(5) of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011
A
Frequency
A Annually
Q Quarterly
P Periodically
Key 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 condensed 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, be
accepted by the Board
•
The audited financial statements of Infosys Limited, prepared
in accordance with Ind AS, for the year ended March 31, 2024,
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, 2024, 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, 2024, 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, 2024, 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, 2025,
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, 2025, to conduct the secretarial audit as prescribed under
Section 204 and other applicable sections of the Companies
Act, 2013
•
Recommended appointment of Jayesh Sanghrajka as Chief
Financial Officer (CFO) of the Company effective April 1, 2024
•
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.
Sd/-
Bengaluru
Bobby Parikh
Chairperson
April 17, 2024
DIN: 00019437
Corporate governance report
Infosys Integrated Annual Report 2023-24
117
Nomination and Remuneration Committee
D. Sundaram
Chairperson
The Nomination and Remuneration Committee (“the Committee”) comprises only independent directors. As on March 31, 2024, the
Committee comprised:
1. D. Sundaram , Chairperson
2. Michael Gibbs
Objectives of the Committee
The main objectives and responsibilities of the Committee are to:
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 General Meeting
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
Committee governance
The Committee fulfills the requirements of:
•
Nomination and Remuneration Committee Charter
•
Section 178 of the Companies Act, 2013
•
Regulation 19 of the Listing Regulations
•
NYSE guidelines, as applicable
The Committee oversees key processes 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 Committee Charter and Policy are
available on our website, at:
Charter: https://www.infosys.com/investors/corporate-
governance/documents/nomination-remuneration-
committee-charter.pdf
Policy: https://www.infosys.com/investors/corporate-
governance/documents/nomination-remuneration-policy.pdf
The Nomination and Remuneration Committee met five
times during fiscal 2024.
Composition and attendance
100%
Attendance
100%
Independence
4
Members
5
Meetings
3. Govind Iyer
4. Nitin Paranjpe
Infosys Integrated Annual Report 2023-24
118
Attendance details of the Nomination and Remuneration Committee
Nomination and Remuneration Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
5
April 12, 2023
July 19, 2023
October 11, 2023
December 11,
2023
January 11,
2024
D. Sundaram
5
5
100
Michael Gibbs
5
5
100
Govind Iyer
5
5
100
Nitin Paranjpe(1)
NA
NA
NA
NA
1
1
100
% Attendance
100
100
100
100
100
Present
Attended through video call
L: Leave of absence
(1) Appointed as member of the Committee effective January 1, 2024
Nomination and Remuneration Committee report for the year ended March 31, 2024
Key highlights of the 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
Q
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 2024.
A
Undertook a review of the succession plans for key leadership positions, and helped to shape and monitor the development
plans of key leadership personnel
P
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
P
Reviewed and recommended to the Board the amendments to the Nomination and Remuneration Policy
P
Reviewed the Nomination and Remuneration Committee Charter
A
Reviewed the overall Board composition and recommended the appointment of Helene Auriol Potier and Nitin Paranjpe as
members of the Board
P
Recommended the reappointment of Bobby Parikh and Chitra Nayak as Independent Directors of the Company for the approval
of the Board
P
Placed a substantial focus on improving the overall diversity of the workforce and enhancing employee engagement through
real-time feedback from employees
P
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.
P
Undertook an annual performance evaluation of its own effectiveness
A
Recommended recognition of certain designation as Senior Management Personnel of the Company for the approval of the
Board and periodically reviewed and recommended revision in their compensation for the approval of the Board
P
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
Q
Took note of remuneration received by employees of the Company holding external Board positions
A
Recommended the appointment of Jayesh Sanghrajka as CFO and KMP effective April 1, 2024
P
Frequency
A Annually
Q Quarterly
P Periodically
Sd/-
Bengaluru
D. Sundaram
Chairperson
April 17, 2024
DIN: 00016304
Corporate governance report
Infosys Integrated Annual Report 2023-24
119
Govind Iyer
Chairperson
The Corporate Social Responsibility Committee (“the Committee”) comprises only independent directors. As on March 31, 2024, the
Committee comprised:
1. Govind Iyer, Chairperson
2. Chitra Nayak
3. Michael Gibbs
Our CSR philosophy
We focus on our social and environmental responsibilities to
fulfil 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 CSR 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
7. To review the impact assessment report issued by
independent agency on the Company’s projects
8. To review CSR reporting / disclosures as may be required
under various statutes
9. To review certificate issued for utilization of CSR funds
earmarked for specific themes / projects
Committee governance
The Committee comprised three independent directors and fulfil
the requirements of:
•
Section 135 of the Companies Act, 2013
•
CSR Committee Charter
The CSR Committee is responsible for identifying the areas
of CSR activities, programs and execution of initiatives as per
defined guidelines and for overseeing the activities / functioning
of Infosys Foundation, Infosys Foundation USA and other
initiatives undertaken by the Company, including in Australia and
various part of 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 2024.
Composition and attendance
100%
Attendance
100%
Independence
3
Members
4
Meetings
Corporate Social Responsibility Committee
Infosys Integrated Annual Report 2023-24
120
Attendance details of the CSR Committee
CSR Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
April 11, 2023
July 18, 2023
October 10, 2023
January 9, 2024
Govind Iyer
4
4
100
Chitra Nayak
4
4
100
Uri Levine(1)
NA
NA
NA
1
1
100
Michael Gibbs(2)
NA
3
3
100
% Attendance
100
100
100
100
Present
Attended through video call
L: Leave of absence
(1) Ceased to be a member of the Committee due to retirement effective April 19, 2023
(2) Appointed as a member of the Committee effective April 20, 2023
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 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, 2024, 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 2024, the Company spent `450.76 crore on various projects.
The unspent balance of `39.54 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 `450.76 crore spent in fiscal 2024, the Company
also spent `47.63 crore on account of ongoing projects of fiscals
2022 and 2023. The CSR amount spent in the US, Australia,
and various parts of Europe, is over and above the statutory
requirement in India.
Sd/-
Bengaluru
Govind Iyer
Chairperson
April 10, 2024
DIN: 00169343
Corporate governance report
Infosys Integrated Annual Report 2023-24
121
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-level ESG Committee to oversee the Company’s ESG priorities. The Committee comprises only
independent directors. As on March 31, 2024, the Committee comprised:
1. Chitra Nayak, Chairperson
2. Govind Iyer
3. Helene Auriol Potier
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.
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. 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 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
2024 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-2023-24.pdf
The ESG committee met four times during fiscal 2024.
Composition and attendance
92%
Attendance
100%
Independence
3
Members
4
Meetings
Infosys Integrated Annual Report 2023-24
122
Attendance details of the ESG Committee
ESG Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
April 11, 2023
July 18, 2023
October 10, 2023
January 9, 2024
Chitra Nayak
4
4
100
Uri Levine(1)
NA
NA
NA
1
1
100
Govind Iyer
L
4
3
75
Helene Auriol Potier(2)
NA
3
3
100
% Attendance
100
100
67
100
Present
Attended through video call
L: Leave of absence
(1) Ceased to be a member of the Committee due to retirement effective April 19, 2023
(2) Appointed as a member of the Committee effective June 17, 2023
ESG Committee report for the year ended March 31, 2024
Key highlights of the 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
Q
Reviewed the ESG Operations Council and its working
Q
Reviewed and took note of the progress of ESG ambitions 2030 and responsible supply chain program
P
Reviewed client engagements on climate actions and sustainability through the Company’s sustainability offerings and solutions
P
Reviewed required compliance with climate change regulations across various jurisdictions, applicable to the Company
A
Reviewed the Company’s position with respect to global ESG assessments and provided directions to address gaps
Q
Monitored the Company’s actions on diversity, equity and inclusion
P
Frequency
A Annually
Q Quarterly
P Periodically
Sd/-
Bengaluru
Chitra Nayak
Chairperson
April 10, 2024
DIN: 09101763
Corporate governance report
Infosys Integrated Annual Report 2023-24
123
Risk Management Committee
D. Sundaram
Chairperson
The Risk Management Committee (“the Committee”) comprises only independent directors. As on March 31, 2024, the
Committee comprised:
1. D. Sundaram, Chairperson
2. Michael Gibbs
3. Bobby Parikh
4. Chitra Nayak
5. Govind Iyer
6. Helene Auriol Potier
7. Nitin Paranjpe
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
fulfil 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 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 2024.
Composition and attendance
96%
Attendance
100%
Independence
7
Members
4
Meetings
Infosys Integrated Annual Report 2023-24
124
Attendance details of the Risk Management Committee
Risk Management Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
April 11, 2023
July 18, 2023
October 10, 2023
January 9, 2024
D. Sundaram
4
4
100
Michael Gibbs
4
4
100
Uri Levine(1)
NA
NA
NA
1
1
100
Bobby Parikh
4
4
100
Chitra Nayak
4
4
100
Govind Iyer
L
4
3
75
Helene Auriol Potier(2)
NA
3
3
100
Nitin Paranjpe(3)
NA
NA
NA
1
1
100
% Attendance
100
100
83
100
Present
Attended through video call
L: Leave of absence
(1) Ceased to be a member of the Committee due to retirement effective April 19, 2023
(2) Appointed as a member of the Committee effective June 17, 2023
(3) Appointed as member of the Committee effective January 1, 2024
Risk Management Committee report for the year ended March 31, 2024
Key highlights of the activities of the Committee during the year
Frequency
Reviewed the risks arising due to evolving macro‐economic and geo-political scenarios in markets we operate
P
Reviewed risks and mitigation actions to reputation, heightened competitive landscape, technology disruption and innovation,
inflation and regulatory environment
P
Reviewed and reassessed the adequacy of the Committee’s charter and recommended any proposed changes to the Board for
approval
P
Reviewed service delivery risk in critical client engagements
P
Reviewed client credit risk
Q
Reviewed the risks to the achievement of ESG goals
A
Reviewed the cybersecurity-related risks, mitigations and oversight of the Cybersecurity Risk Sub‐committee
Q
Reviewed the risks and assessed the mitigation actions put in place to address talent constraints
P
Reviewed the risks and assessed mitigation actions put in place to tackle challenges arising due to geopolitical conflicts
P
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
P
Submitted regular reports and recommendations to the Board with respect to risk management and mitigation procedures
Q
Reviewed and approved the Enterprise Risk Management Framework of the Company
A
Undertook an annual performance evaluation of its own effectiveness
A
Frequency
A Annually
Q Quarterly
P Periodically
Sd/-
Bengaluru
D. Sundaram
Chairperson
April 09, 2024
DIN: 00016304
Corporate governance report
Infosys Integrated Annual Report 2023-24
125
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, 2024, the sub-
committee comprised:
1. Michael Gibbs, Chairperson and Cybersecurity expert
2. D. Sundaram
3. Govind Iyer
4. Chitra Nayak
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
Composition and attendance
94%
Attendance
100%
Independence
4
Members
4
Meetings
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 met four times during fiscal 2024.
Attendance details of the Cybersecurity Risk Sub-committee
(1) Ceased to be a member of the Committee due to retirement effective April 19, 2023
(2) Appointed as a member of the Committee effective July 18, 2023
Cybersecurity Risk Sub-committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
April 11, 2023
July 18, 2023
October 10, 2023
January 9, 2024
Michael Gibbs
4
4
100
D. Sundaram
4
4
100
Uri Levine(1)
NA
NA
NA
1
1
100
Govind Iyer
L
4
3
75
Chitra Nayak(2)
NA
3
3
100
% Attendance
100
100
75
100
Present
Attended through video call
L: Leave of absence
Infosys Integrated Annual Report 2023-24
126
Sd/-
Bengaluru
Michael Gibbs
Chairperson
April 8, 2024
DIN: 08177291
Cybersecurity Risk Sub-committee report for the year ended March 31, 2024
Key highlights of the activities of the Committee during the year
Frequency
Reviewed the security awareness initiatives along with consequence management for violations
P
Reviewed the heightened external threat environment
P
Reviewed the threat landscape and incident metrics, global ransomware attacks, and Infosys preparedness including crisis
management, scenario analysis and table-top exercise
Q
Reviewed the details of cybersecurity incidents and the progress of mitigation actions
P
Reviewed the remote and hybrid working challenges and controls
P
Reviewed the new regulatory requirements for cybersecurity
P
Frequency
A Annually
Q Quarterly
P Periodically
Corporate governance report
Infosys Integrated Annual Report 2023-24
127
Stakeholders Relationship Committee
Michael Gibbs
Chairperson
The Stakeholders Relationship Committee (“the Committee”) comprises only independent directors. As on March 31, 2024, 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
Committee Charter
Objectives and responsibilities of the Committee
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.
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
•
NYSE guidelines, as applicable
•
Stakeholders Relationship Committee Charter
The Stakeholders Relationship Committee Charter is available
on the Company’s website, at https://www.infosys.com/
investors/corporate-governance/documents/stakeholders-
relationship-committee.pdf.
The primary objectives of the Committee are to:
1. Consider and resolve the security holders’ concerns or
complaints
2. Monitor and review the investor service standards of the
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
100%
Attendance
100%
Independence
4
Members
4
Meetings
Infosys Integrated Annual Report 2023-24
128
Stakeholders Relationship Committee meeting
Name of the member
Committee meeting details
Held
during
tenure
Attended
%
1
2
3
4
April 11, 2023
July 18, 2023
October 10, 2023
January 9, 2024
Michael Gibbs
4
4
100
D. Sundaram
4
4
100
Bobby Parikh
4
4
100
Chitra Nayak
4
4
100
% Attendance
100
100
100
100
Present
Attended through video call
L: Leave of absence
Attendance details of the Stakeholders Relationship Committee
Shareholding as on March 31, 2024
Complaints received and resolved during the year
ended March 31, 2024
Stakeholders Relationship Committee report for the year ended March 31, 2024
Key highlights of the activities of the Committee during the year
Frequency
Monitored and reviewed the Company’s performance in dealing with stakeholder grievances
A
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
P
Reviewed the unclaimed dividend and equity shares transferred to the Investor Education and Protection Fund (IEPF) pursuant to
the IEPF Rules
P
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
A
Provided updates to the Board
P
Reviewed the measures taken for effective exercise of voting rights by shareholders
A
Reviewed the adherence to service standards and security assessments adopted in respect of various services being rendered by
the RTA
P
Undertook an annual performance evaluation of its own effectiveness
A
Reviewed the Management’s investor / analyst interactions
Q
Reviewed the key investor relations updates
Q
Frequency
A Annually
Q Quarterly
P Periodically
Sd/-
Bengaluru
Michael Gibbs
Chairperson
April 08, 2024
DIN: 08177291
27,73,140
266
27,73,406
Total
Number of shareholders
99.91
0.09
100%
Total
% to equity
415,08,67,464
Total
Number of shares
Dematerialized
Physical
414,71,34,711 37,32,753
Received
Resolved
2023
2024
3,568
3,568
819
819
Corporate governance report
Infosys Integrated Annual Report 2023-24
129
Fairness and excellence
Two of the core values of our C-LIFE, fairness and excellence are evident
in the workings of the Board, its evaluation and the compensation paid to
the directors and the executive leadership.
Board member evaluation
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 fulfilment 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
2024. 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 2024.
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.
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 interests 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.
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
Infosys Integrated Annual Report 2023-24
130
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, 2024 is `15.67 crore. Additionally, independent
directors are also reimbursed for expenses incurred in the
The aggregate amount of remuneration (commission) was arrived at using the following criteria:
Particulars
in ` crore
in US$
Fixed Board fee
1.25
1,50,000
Board / committee attendance fee(1)
0.21
25,000
Non-executive chairman fee
2.50
3,00,000
Chairperson – Audit Committee
0.42
50,000
Members – Audit Committee
0.25
30,000
Chairperson – other committees
0.25
30,000
Members – other committees
0.17
20,000
Travel fee (per meeting)(2)
0.08
10,000
Incidental fees (per meeting)(3)
0.01
1,000
Lead Independent Director
0.25
30,000
Notes: 1 US$ = `83.41 as on March 31, 2024
The payment is subject to deduction of tax at source (TDS) as required by applicable tax laws.
(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.
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.
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, 2024.
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 the Company, 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.
Corporate governance report
Infosys Integrated Annual Report 2023-24
131
Remuneration to directors in fiscal 2024
in ` crore
Name of the director
Fixed salary
Bonus /
incentives /
variable pay
Perquisites
on account of
stock options
exercised(1)*
Commission
Total
Base
salary
(A)
Retiral
benefits
(B)
Total fixed
salary
(A+B)
Non-executive and non-independent director
Nandan M. Nilekani(2)
–
–
–
–
–
–
–
Executive director
Salil Parekh(3)
7.00
0.47
7.47
19.75
39.03
–
66.25
Independent directors
D. Sundaram
–
–
–
–
–
2.79
2.79
Michael Gibbs
–
–
–
–
–
3.07
3.07
Bobby Parikh
–
–
–
–
–
2.21
2.21
Chitra Nayak
–
–
–
–
–
2.69
2.69
Govind Iyer
–
–
–
–
–
2.38
2.38
Uri Levine(4)
–
–
–
–
–
0.23
0.23
Helene Auriol Potier(5)
–
–
–
–
–
1.77
1.77
Nitin Paranjpe(6)
–
–
–
–
–
0.53
0.53
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 2024 is mentioned in the notes below. Independent directors are not entitled to any stock incentives.
(2) Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.
(3) a) Perquisites value of stock incentives on account of exercise of 2,58,636 Restricted Stock Units (RSUs) under the 2015 Plan and 32,447 RSUs under the 2019 Plan
during fiscal 2024
b) On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his
employment agreement effective July 1, 2022, the Board approved
i) the grant of 2,72,026 performance-based RSUs under the 2015 Plan effective May 2, 2023. These will vest based on the achievement of certain performance
targets.
ii) the grant of 15,656 performance-based RSUs under the 2015 Plan effective May 2, 2023. These will vest based on the achievement of certain environment,
social and governance milestones as determined by the Board.
iii) the grant of 39,140 performance-based RSUs under the 2015 Plan effective May 2, 2023. 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 18,104 annual time-based RSUs for fiscal 2024 under the 2015 Plan effective February 1, 2024
v) the grant of 78,281 performance-based RSUs for fiscal 2024 under the 2019 Plan effective May 2, 2023. 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 employment agreement.
(4) Retired as Independent Director effective April 19, 2023
(5) Appointed as Independent Director effective May 26, 2023
(6) Appointed as Independent Director effective January 1, 2024
* The RSUs were issued at par value.
In accordance with the Listing Regulations, no employee, including key managerial personnel or director or promoter of a listed entity,
shall enter into any agreement for himself or on behalf of any other person, with any shareholder or any other third party with regard to
compensation or profit-sharing in connection with dealings in the securities of the Company, without prior approval from the Board as
well as from shareholders by way of an ordinary resolution. No such instances were reported during fiscal 2024.
Infosys Integrated Annual Report 2023-24
132
Employment agreements with executive director
Name of the director
Effective date of
executive employment
agreement
Details of shareholders’ approval
on the agreements
Website links
Salil Parekh, Chief Executive
Officer and Managing Director
January 2, 2018 (Initial
appointment) and July 1,
2022 (reappointment)
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:
in ` crore
Type of service
Fiscal 2024
Fiscal 2023
Audit fees (1)
25
21
Tax fees
2
4
Others
2
1
Total
29
26
(1) Includes audit and audit-related services
Particulars of Senior Management
The particulars of senior management as per Regulation 16(1) (d) of the Listing Regulations including the changes during the fiscal
2024 are as follows:
Name
Designation
Anand Swaminathan
Segment Head – Communication,
Media and Technology
Arun Kumar H.R.
Head – Business Strategy,
Planning and Operations
Ashiss Kumar Dash
Segment Head – Energy, Utilities,
Resources and Services
Dennis Kantilal Gada
Segment Head – Banking and
Financial Services
Dinesh R.
Co-Head of Delivery
Hemant Lamba
Head – Strategic Global Sourcing
Inderpreet Sawhney
Group General Counsel and Chief
Compliance Officer
Jasmeet Singh
Segment Head – Manufacturing
Jayesh Sanghrajka
Chief Financial Officer
Manikantha A.G.S
Company Secretary
Kannan Amaresh
Industry Head – Insurance
Name
Designation
Karmesh Gul Vaswani
Segment Head – CPG, Logistics
& Retail
Satish H.C.
Co-Head of Delivery
Shaji Mathew
Group Head – Human Resources
Sumit Virmani
Chief Marketing Officer
Subhro Malik
Industry Head – Life Sciences
Venkateshwaran Ananthakrishnan
Industry Head – Healthcare
Changes during fiscal 2024
Senior Management Personnel
Effective date
Appointments
Jayesh Sanghrajka
April 01, 2024
Resignations
Nilanjan Roy
March 31, 2024
Ravi Kiran Kuchibhotla
March 31, 2024
Richard Lobo
August 31, 2023
Corporate governance report
Infosys Integrated Annual Report 2023-24
133
Integrity and transparency & Relationship with stakeholders
Our Company upholds integrity and transparency in all transactions and
communications to stakeholders. Our stakeholders are our partners in the path
to sustained value creation and therefore, our relationship with stakeholders and
clear communication with them is at the center of all disclosures and reports.
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.
On March 11, 1999, Infosys listed on NASDAQ, becoming the
first Indian company to do so. 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.
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. On March 11, 2024, Infosys marked 25 years
of listing in the US.
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”.
Indian IT services sector is credited as having put India on the
global map over two decades ago, with Infosys widely seen as
being the ‘posterchild’ of the sector.
Infosys Integrated Annual Report 2023-24
134
No. of shares
1
2
4
8
16
32
64
128
1,024
2,048
4,096
8,192
16,384
0
2,000
4,000
6,000
8,000
10,000
12,000
16,000
14,000
18,000
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
Bonus
Stock
Split
Bonus
Bonus
Bonus
Bonus
Bonus
1:1
1:1
1:1
1:1
1:1
1:1
1:1
1:1
1:1
1:1
1:1
3:1
256
Corporate action
2:1
Prior to
1986
1986
1989
1991
1992
1994
1997
1999
2000
2005
2007
2015
2016
2019
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.
Bonus issues and stock split
Interim 2023-24
Dividend cycle
Payout date
Record date
Oct 25, 2023
Nov 6, 2023
Final and Special 2023-24
Dividend cycle
Payout date
Record date
May 31, 2024
Jul 1, 2024
`18.00
`46.00
Total Dividend
`28.00
Final `20.00
Special `8.00
Dividend for fiscal 2024
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.
Outstanding unclaimed shares
Pursuant to Regulation 34(3) and Part F of Schedule V to the Listing Regulations, the Company does not have its equity shares in the
demat suspense account or unclaimed suspense account.
Agreements binding listed entities
Pursuant to Regulation 30A of the Listing Regulations, no agreement has been entered or executed by the shareholders, promoters,
promoter group entities, related parties, directors, key managerial personnel and employees of the Company during the financial year.
Corporate governance report
Infosys Integrated Annual Report 2023-24
135
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
Due date
for transfer
Amount (`)(2)
2016 - 2017
Final
14.75
June 24, 2017
July 25, 2024
1,69,56,231
2017 - 2018
Interim
13.00
October 24, 2017
November 24, 2024
1,87,43,062
2017 - 2018
Final & Special
30.50
June 23, 2018
July 24, 2025
3,87,01,141
2018 - 2019
Interim
7.00
October 16, 2018
November 14, 2025
1,63,86,350
2018 - 2019
Special
4.00
January 11, 2019
February 10, 2026
98,86,864
2018 - 2019
Final
10.50
June 22, 2019
July 21, 2026
2,36,58,758
2019 - 2020
Interim
8.00
October 11, 2019
November 11, 2026
2,04,37,609
2019 - 2020
Final
9.50
June 27, 2020
July 28, 2027
2,14,30,834
2020 - 2021
Interim
12.00
October 14, 2020
November 17, 2027
2,50,35,362
2020 - 2021
Final
15.00
June 19, 2021
July 20, 2028
2,68,31,563
2021 - 2022
Interim
15.00
October 13, 2021
November 16, 2028
3,16,36,749
2021 - 2022
Final
16.00
June 25, 2022
July 25, 2029
3,12,59,395
2022 - 2023
Interim
16.50
October 13, 2022
November 13, 2029
2,94,18,071
2022 - 2023
Final
17.50
June 28, 2023
July 27, 2030
3,14,59,106
2023 - 2024
Interim
18.00
October 12, 2023
November 12, 2030
2,93,72,679
(1) Not adjusted for bonus issue
(2)
Amount unclaimed as on March 31, 2024
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
Type of dividend
Dividend declared on
Date of transfer to IEPF
Amount transferred to IEPF
2023-24
Interim 2016-17
October 14, 2016
November 20, 2023
1,08,18,665
2023-24
Final 2015-16
June 18, 2016
July 17, 2023
1,42,14,062
2022-23
Interim 2015-16
October 12, 2015
November 17, 2022
1,03,63,320
2022-23
Final 2014-15
June 22, 2015
July 22, 2022
1,39,48,102
2021-22
Interim 2014-15
October 10, 2014
November 12, 2021
82,69,260
2021-22
Final 2013-14
June 14, 2014
July 19, 2021
1,19,89,432
Shares transferred to IEPF
During the year, the Company transferred 15,346 and 12,288 shares on August 16, 2023 and December 22, 2023, respectively, due to
the dividends being unclaimed for seven consecutive years, in accordance with the Rules. During the year, the Company received
applications from shareholders for claiming shares from the IEPF. Overall, IEPF has settled applications pertaining to 30,781 shares to
respective shareholders and IEPF holds 7,49,567 shares as on March 31, 2024 on account of transfer of shares under the Rules. During the
year, the Company also transferred ₹2,60,47,112 as corporate benefits (dividend) arising on shares already transferred to the IEPF.
Schedule of events
43rd Annual General Meeting
Date and time
Mode
Video conference
and other
audio-visual means
June 26, 2024,
Wednesday
4:00 p.m. IST
June 21, 2024 to
June 25, 2024
Participation through
video-conferencing
Webcast and
transcripts
E-voting dates
https://agm.
onwingspan.com
/InfosysAGM
https://
www.infosys.com/
Investors/
Infosys Integrated Annual Report 2023-24
136
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 2024-25 are as follows:
Quarter ending
Jun 30, 2024
Sep 30, 2024
Dec 31, 2024
Mar 31, 2025
Board meeting and earnings release date
Jul 18, 2024
Oct 17, 2024
Jan 16, 2025
Apr 17, 2025
Trading window closure
Jun 16, 2024 to
Jul 21, 2024
Sep 16, 2024 to
Oct 20, 2024
Dec 16, 2024 to
Jan 19, 2025
Mar 16, 2025 to
Apr 20, 2025
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. 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 2024
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 / Company representatives 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.
Conferences/NDR’s
Company events
Q1
Q2
Q3
Q4
Total
10
Total
7
Total
12
9
6
11
1
1
1
2
3
Total
5
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.
Corporate governance report
Infosys Integrated Annual Report 2023-24
137
Company shares related disputes/litigation
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 the Company’s RTA,
KFin Technologies Limited 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.
Share capital
414,85,60,044
Holding as on March 31, 2023
23,07,420
ESOP Allotment
415,08,67,464
Holding as on March 31, 2024
Listing on stock exchanges
Codes
India
Global
NSE
BSE
NYSE
Exchange
INFY
INFY
INFY
Reuters
INFY.NS
INFY.BO
INFY.K
Bloomberg
INFO IS
INFO IB
INFY US
The listing fees for fiscal 2024 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
Dematerialization of shares and liquidity
Demat mode
Physical mode
27,73,406
415,08,67,464
27,73,140
Shareholders (1)
266
414,71,34,711
Shares
37,32,753
99.91%
0.09%
% to total
equity
(1) The number of shareholders are based on PAN as on March 31, 2024.
Category-wise shareholding as on March 31, 2024
44,24,17,564
American Depositary Receipts
56,92,17,971
Insurance Companies
13.71%
10.66%
18,00,37,817
Others
4.34%
126,47,47,271
Foreign Portfolio Investors
30.47%
66,49,86,219
Mutual Funds
16.02%
54,56,13,679
Promoters & Promoter Group
13.14%
48,38,46,943
Resident Individuals (Public)
11.66%
415,08,67,464
Total
Infosys Integrated Annual Report 2023-24
138
Shareholders holding more than 1% of the shares as on March 31, 2024
The details of shareholders (non-promoters and non-ADR holders) holding more than 1% (PAN-based) of the equity as on March 31,
2024 are as follows:
Name of the shareholder
Life Insurance Corporation of India
SBI Mutual Fund
Government of Singapore
ICICI Prudential Mutual Fund
NPS Trust
HDFC Mutual Fund
UTI Mutual Fund
Government Pension Fund Global
ICICI Prudential Life Insurance Company Limited
Vanguard Total International Stock Index Fund
SBI Life Insurance Company Limited
Aditya Birla Sun Life Mutual Fund
Vanguard Emerging Markets Stock Index Fund,
A Series of Vanguard International Equity Index Fund
% (percentage of holding)
No. of shares
9.30
4.19
2.70
2.05
1.67
1.51
1.42
1.39
1.14
1.13
1.01
1.00
38,59,52,941
17,38,95,285
11,21,72,985
8,50,98,650
6,93,43,919
6,27,38,559
5,89,13,054
5,76,72,224
4,81,16,642
4,73,78,593
4,69,00,795
4,20,47,792
4,14,88,932
1.16
Distribution of shareholding as on March 31, 2024
No. of shares held No. of holders
% to holders
No. of shares
% to equity
1-1
2-10
11-50
51-100
101-200
201-500
501-1,000
1,001-5,000
5,001-10,000
10,001 and above
Total
1,91,303
53,40,483
2,48,12,632
2,47,83,460
3,02,64,667
4,59,79,863
3,64,40,699
7,19,37,697
3,35,66,392
387,75,50,268
415,08,67,464
1,91,303
9,03,512
9,15,045
3,19,669
2,02,745
1,43,154
50,744
35,628
4,804
6,802
27,73,406
6.90
0.00
0.13
0.60
0.60
0.73
1.11
0.88
1.73
0.81
32.58
32.99
11.53
7.31
5.16
1.83
1.28
0.17
0.25
100
100
93.42
Corporate governance report
Infosys Integrated Annual Report 2023-24
139
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:
2023-24
BSE
NSE
Total volume (No.)
Month
High (₹)
Low (₹)
Volume (A)
High (₹)
Low (₹)
Volume (B)
(A+B)
April
1,438.00
1,215.45
78,25,366
1,435.00
1,185.30
18,18,95,956
18,97,21,322
May
1,332.15
1,239.00
81,64,779
1,332.70
1,239.05
15,37,58,884
16,19,23,663
June
1,338.85
1,262.30
81,75,579
1,338.90
1,262.25
12,53,02,884
13,34,78,463
July
1,499.00
1,311.60
94,82,985
1,498.80
1,305.00
21,24,88,786
22,19,71,771
August
1,444.90
1,348.10
81,01,663
1,444.90
1,348.45
10,71,63,346
11,52,65,009
September
1,519.30
1,416.00
48,09,204
1,518.40
1,416.00
10,15,41,064
10,63,50,268
October
1,518.50
1,353.85
88,56,233
1,518.25
1,353.10
11,56,59,556
12,45,15,789
November
1,465.95
1,352.00
58,66,468
1,467.90
1,351.65
8,57,58,382
9,16,24,850
December
1,593.00
1,432.65
70,48,878
1,593.00
1,433.15
13,00,77,843
13,71,26,721
January
1,689.90
1,486.65
1,02,62,977
1,690.00
1,486.60
16,69,81,301
17,72,44,278
February
1,731.00
1,635.35
44,47,688
1,733.00
1,635.50
10,16,73,806
10,61,21,494
March
1,672.50
1,482.00
99,99,388
1,671.95
1,481.55
13,61,92,906
14,61,92,294
Total
9,30,41,208
161,84,94,714
171,15,35,922
The volume traded / outstanding shares (%) in the last three fiscals is as follows:
Fiscal
Volume (BSE)
Volume (NSE)
Volume (BSE +NSE)
2023-24
3
44
47
2022-23
3
43
46
2021-22
3
44
47
Note: The number of shares outstanding was 370,84,49,900 as of March 31, 2024. ADSs have been excluded for the purpose of this calculation.
Stock market data – NYSE
2023-24
High ($)
Low ($)
High (`)
Low (`)
Volume (No.)
Month
April
17.80
14.71
1,460.67
1,207.27
27,44,40,777
May
16.01
14.98
1,324.03
1,230.01
22,03,98,318
June
16.26
15.12
1,333.24
1,240.49
21,52,76,416
July
18.14
15.33
1,487.12
1,257.68
24,80,26,220
August
17.59
16.44
1,453.75
1,354.08
16,22,53,839
September
18.18
16.72
1,508.03
1,391.10
13,54,84,684
October
18.00
16.21
1,498.14
1,347.54
17,79,79,251
November
17.75
16.27
1,477.80
1,353.66
11,81,28,957
December
18.98
17.29
1,581.03
1,441.64
12,10,35,325
January
20.37
17.55
1,693.56
1,462.09
20,39,42,136
February
20.74
19.68
1,721.83
1,631.28
11,66,63,508
March
19.92
17.59
1,650.17
1,465.77
19,74,40,623
Total
219,10,70,054
Note:
1 ADS = 1 equity share. The US dollar has been converted into the Indian rupee at the daily rates. The number of ADSs outstanding as on March 31, 2024, was
44,24,17,564. The percentage of volume traded for the year at NYSE, to the total float was 495%.
Infosys Integrated Annual Report 2023-24
140
ADS premium compared to price quoted on NSE
ADS (`)
April
May
June
July
August September
October
November December
January
February
March
1,300.86
1,310.94
-0.8%
-0.5%
-0.5%
-1.0%
-2.0%
-1.0%
1.0%
2.0%
0.0%
-
300
900
1,200
1,500
1,800
600
-0.7%
-0.7%
0.7%
-0.6%
-0.2%
0.2%
-0.9%
0.3%
1,272.13
1,278.84
1,283.61
1,292.24
1,358.75
1,367.90
1,403.73
1,399.11
1,468.21
1,477.61
1,418.58
1,431.21
1,423.43
1,413.70
1,509.72
1,513.50
1,599.98
1,596.82
1,671.67
1,680.89
1,571.65
1,587.27
Equity (`)
Premium/
(Discount)
(`)
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 / GDRs / Warrants or any Convertible Instruments
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, 2024, there were 63,280 record holders of ADRs evidencing 44,24,17,564 ADSs (1 ADS = 1 equity share). The
Company does not have any outstanding GDRs / Warrants or any convertible instruments as on March 31, 2024.
Infosys share price versus the NSE Nifty 50 index
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-23
80
100
120
140
May-23
Jun-23
Jul-23
Infosys
NIFTY 50
Note: Infosys share price and NSE Nifty 50 index values on April 1, 2023 have been baselined to 100.
Corporate governance report
Infosys Integrated Annual Report 2023-24
141
Infosys share price versus the S&P BSE Sensex (Sensex)
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Infosys
BSE Sensex
80
100
120
140
Note: Infosys share price and Sensex values on April 1, 2023 have been baselined to 100.
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
Baa1
Stable
Standard & Poor’s
A
Stable
Dun & Bradstreet
5A1
Condition: Strong
CRISIL
AAA
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 and
Ind AS. 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 265 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-presence2024.pdf for details related to
our global locations.
Subsidiaries
As on March 31, 2024, we have 28 direct subsidiaries and 63
step-down subsidiaries. The Company does not have any
material subsidiary.
Infosys Integrated Annual Report 2023-24
142
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
Web link for webcast /
transcripts
March 31,
2023
42nd AGM: June 28,
2023 at 4 p.m. IST
Held through video
conferencing /
other audio-visual
means
1. Appointment of Helene Auriol Potier as an
Independent Director of the Company
2. Reappointment of Bobby Parikh as an
independent director
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2023/agm-2023-
transcript.pdf
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
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2022/agm-2022-
transcript.pdf
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
https://www.infosys.
com/investors/news-
events/annual-general-
meeting/2021/agm-2021-
transcript.pdf
Extraordinary General Meeting
No extraordinary general meeting of the members was held during fiscal 2024.
Postal ballot
During the financial year, the following special resolutions were passed by the shareholders by the requisite majority by way of postal
ballot through e-voting.
Date of postal
ballot notice
Resolution passed
Voting results
Approval date
Scrutinizer
January 11,
2024
Appointment of Nitin Paranjpe
(DIN: 00045204) as an
Independent Director
Voting in favour: 97.39%
February 20, 2024
Hemanth, Holla & Co., (Membership
No. FCS 6374) (CP No. 6519)
Practicing Company Secretaries.
Voting against: 2.61%
Reappointment of Chitra
Nayak (DIN: 09101763) as an
Independent Director
Voting in favour: 99.93%
Voting against: 0.07%
The voting results are made available on our website at 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.
Corporate governance report
Infosys Integrated Annual Report 2023-24
143
Legal compliance
In everything we do, we comply with the law of the land. All disclosures and policies
to this effect, including details of non-compliance, regulatory orders, certifications
and complaints, are made available in this corporate governance report.
Details of non-compliance
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 material regulatory orders pertaining to the
Company for fiscal 2024.
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, and 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 management have affirmed compliance to
the Code as on March 31, 2024. A declaration to this effect is 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 behaviour, 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 18, 2024. 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,
which is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/code-conduct-prohibition-insider-trading.pdf.
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 appointed a non-executive chairperson
who is not related to the CEO & MD
•
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
Other disclosures and affirmations
•
The Company has complied with the corporate governance
requirements as per Regulation 17 to 27 and website
disclosure requirements as per Regulation 46(2) of the Listing
Regulations.
•
The securities of the Company were not suspended from
trading anytime during fiscal 2024.
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.
Infosys Integrated Annual Report 2023-24
144
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-560100, Karnataka, 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-560100, Karnataka, 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.
Documents available on the website of the Ministry of Corporate Affairs;
ii.
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 BSE Limited and National Stock Exchange of India Limited.
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, 2024.
Table A
Sr. No.
Name of the Directors
Director Identification Number (DIN)
Date of appointment in the Company
1.
Nandan M. Nilekani
00041245
August 24, 2017
2.
Salil Parekh
01876159
January 02, 2018
3.
D. Sundaram
00016304
July 14, 2017
4.
Michael Gibbs
08177291
July 13, 2018
5.
Bobby Parikh
00019437
July 15, 2020
6.
Chitra Nayak
09101763
March 25, 2021
7.
Govind Iyer
00169343
January 12, 2023
8.
Helene Auriol Potier
10166891
May 26, 2023
9.
Nitin Paranjpe
00045204
January 01, 2024
For Makarand M. Joshi & Co.
Company Secretaries
Sd/-
Place: Mumbai
Makarand M. Joshi
Date: April 18, 2024
Partner
FCS No. 5533
CP No. 3662
PR: 640 / 2019
UDIN: F005533F00017513
Corporate governance report
Infosys Integrated Annual Report 2023-24
145
For queries relating to financial statements
Amrita Srikanth
VP – Head – Technical Accounting
Tel: +91 80 4964 2810
Email : amrita.s@infosys.com
Investor correspondence
Sandeep Mahindroo
SVP, Financial Controller & Head – Investor Relations
Tel : +91 80 3980 1018
Email : sandeep_mahindroo@infosys.com
For queries relating to shares / dividend / compliance
A.G.S. Manikantha
VP, Company Secretary
Tel: +91 80 4116 7775
Email: investors@infosys.com
For queries relating to business responsibility report
and Sustainability Report
Aruna C. Newton
VP – Head – Diversity and Inclusion, HRD
Tel: +91 80 2852 0261
Email: arunacnewton@infosys.com
Registrar and share transfer agents
KFin Technologies Limited
Selenium Tower B, Plot Nos. 31 & 32,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad – 500032
Contact person
C. Shobha Anand
Deputy Vice President,
KFin Technologies Limited
Toll Free Number +1800-309-4001
Email: einward.ris@kfintech.com
Depositary bank (ADS)
United States
Deutsche Bank Trust Company Americas
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
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
Custodian in India (ADS)
ICICI Bank Limited
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
Investor contacts
Statutory reports
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
Central Depository Services (India) Limited
Marathon Futurex, A-Wing,
34th & 35th Floor, Mafatlal Mills Compound
NM Joshi Marg,
Lower Parel (East), Mumbai 400013
Tel: +022-66661621/22 022-66661623/24
Infosys Integrated Annual Report 2023-24
146
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: +022 6654 5695
Outside India
New York Stock Exchange
11 Wall Street, New York, NY 10005, US
Tel: +1 212 656 3000
Investor contacts
Infosys Integrated Annual Report 2023-24
147
“ Risks related to the geo-political changes, uncertainties in the economy, supply chain constraints, talent
availability, technology disruption and cybersecurity 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.
Emerging risks: Our ERM framework has defined a process to
identify, assess, plan, and monitor risks emerging from internal
and external environments, which enable the Company to build
and maintain resilience in uncertain times. The process includes
horizon scanning, and SWOT analysis, which cover political,
economic, social, technology, legal and environmental aspects.
The emerging risks are monitored constantly and discussed
in the risk councils and with the Risk Management Committee
(RMC) of the Board on periodic basis.
Strategy and strategy execution
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.
Operational
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.
Legal and compliance
The risks arising out of threats posed to our financial, organizational, or reputational standing
resulting from litigations, non-conformance with laws, regulatory or geo-political developments,
codes of conduct and contractual compliances are covered in this category.
Integrated Enterprise Risk Management Framework
We have adopted an integrated ERM framework that is implemented across the organization by the risk management office. Our
ERM framework is developed by incorporating the best practices based on COSO and ISO 31000 and then tailored to suit our unique
business requirements.
Risk management report
Statutory reports
Infosys Integrated Annual Report 2023-24
148
Integrated Enterprise Risk Management Framework
Strategy and
business objectives
Aligned lines of defense
iGRC platform
Intelligent risk analytics – Live Enterprise
Values and
culture
Vision and
mission
Strategic and
stakeholder
goals
Derived
goals
STRATEGY
Risk-enabled decision-making
Treatment, mitigation and
control implementation
Secondary and consequential
risk assessment
Residual risk assessment
and decision-making
Auditing, monitoring
and reporting
Risk governance
and disclosures
Risk management
Risk identification
Risk
assessment
Opportunity
Operational
Legal and compliance
Level 1 Risk
Level 2 Risk
Level 3 Risk
Level 4 Risk
Sales
Delivery
Business enabling function
Level 5 Risk
Strategy execution
Granularity
Type of risks
Impact groups
PERFORMANCE EVALUATION AND RISK MANAGEMENT
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
8-layer governance
GOVERNANCE
Salient features of our Enterprise Risk Management program
Our ERM program adopts unique methods to identify risks, evaluate potential impact and promote risk awareness
across the organization.
Secondary, consequential and residual risks
Secondary risks are threats that could impede the mitigation
of primary risks. Consequential risks are the unintended
consequences of primary mitigation, and residual risks are
those risks that are left over after mitigation.
Process risk frameworks
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-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.
Intelligent risk analytics
Internal and external risk and performance indicators,
and loss incidents are used in real time to identify,
analyze and assess potential issues that could negatively
impact strategic goals.
RISC360 : iGRC
Risk culture
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.
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.
Enterprise
Risk Management
program
Salient features
Risk management report
Infosys Integrated Annual Report 2023-24
149
Highlights of fiscal 2024
Key / Emerging risks
Impact on Company
Mitigation / Opportunity
Geo-political,
macroeconomic 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 and, in
turn, our growth and profitability.
•
Emerging risk: 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
•
Broad-based growth to reduce concentration in
any single region, client or industry
•
Monitor geo-political and macroeconomic
scenarios, identify potential business impact and
implement additional controls to build operational
agility to respond to situations
•
Implement currency hedging best practices to
minimize the impact due to the volatility
•
Implement strong business continuity protocols in
the regions affected by the geo-political conflicts
•
Opportunity – Clients are looking for cost takeout
projects and vendor consolidation
Commoditization
of services and
heightened
competitive landscape
•
If we are unable to differentiate our offerings and
manage customer expectations in times of intense
competition in the market for technology services, and
/ or use of GenAI to enhance productivity, this could
affect our win rates and pricing, reduce our market
share and decrease our revenue and profits.
•
Impacted capitals: Financial and Intellectual
•
Differentiation of services through constant
innovation and developing industry solutions
meeting client requirements
•
Continued investments to identify, incubate,
develop and launch innovative offerings
•
Constant investments in technology to increase
automation and improve productivity savings
•
A broad portfolio of interconnected services
and solutions covering discretionary and non-
discretionary spends of customers
•
Focused growth of digital capabilities
Technology disruption
and innovation
•
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 like AI, 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
•
Innovation framework to identify and incubate
next big bets
•
Joint innovation showcases with clients, industry
forums, alliances, partners, academia, etc.
•
Constant investments in research and
development to develop consulting and industry
-domain, knowledge-led solutions
•
Reskilling program for employees in newer
technologies and methodologies
•
Large deal specific investments to drive
innovation, enhance productivity and enhance
industry-domain expertize
•
Opportunity – Identify, develop and deploy new
offerings to customers leveraging next-generation
technologies
During fiscal 2024, various risks management initiatives were
undertaken so as to ensure the smooth delivery of services to
our clients, transparent communication with all stakeholders,
fulfilment of our social responsibility while ensuring employee
safety and health by strengthening the risk management
program and enhancing the risk culture. 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, the key
risks and emerging risks are described below along with the
Company’s approach to mitigate them.
Infosys Integrated Annual Report 2023-24
150
Key / Emerging risks
Impact on Company
Mitigation / Opportunity
Talent supply
constraints and hybrid
working model
•
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
•
Focused efforts to improve the recruitment and
employee onboarding cycle time
•
Employee engagement and support initiatives to
improve employee connect with the organization
•
Holistic employee retention and recognition
efforts for key and tenured employees
•
Focused career and leadership development
programs
•
Hybrid operational model that balances client
requirements, evolving employee preferences,
legal requirements and information security risks
Cybersecurity
•
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 client SLA impact and regulatory
penalties.
•
Impacted capitals: Financial, Human, Intellectual and
Manufactured
•
Robust cybersecurity strategy, framework,
processes, policies and controls to enhance cyber
resilience
•
Multi-layered governance process with executive
and Board oversight to review the cybersecurity
risks and our preparedness to mitigate and
respond to such risks
•
Continued investment in technologies to address
risks posed by evolving cyber threat landscape
•
Close collaboration with cyber intelligence and
forensic agencies to identify and prepare for
emerging cybersecurity threats, periodic table-top
exercises and maintain the cybersecurity crisis
plan up to date
•
Regular cybersecurity awareness programs and
trainings with strong consequence management
process
•
Strong encryption, data backup and recovery
mechanism to ensure business continuity during
any crisis
•
The Cyber Risk Assessment Framework aligned to
ISO 31000, ISO 27001, and ISO 27005.
•
Opportunity – Cybersecurity services to the
customer
Data protection and
privacy
•
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, policies, processes
and controls
•
Trainings and workshops to employees on privacy
by design and data protection and privacy
awareness bringing in geographical nuances
•
Multi-layered governance process with executive
and Board oversight to review the data protection
and privacy risks and our preparedness to mitigate
and respond to such risks.
•
Continuous monitoring of regulatory landscape
Cost inflation / Inability
to improve margin
•
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
ESG
•
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
•
ESG 2030 ambitions and execution roadmap with
dedicated owners for each of the ambitions
•
Board-level governance and oversight through
dedicated ESG Committee of the Board
•
Periodic risk assessments to identify, assess, and
mitigate the risks to ESG ambitions
•
Opportunity – Climate change-related solutions
and services to the customer
Risk management report
Infosys Integrated Annual Report 2023-24
151
Key / Emerging risks
Impact on Company
Mitigation / Opportunity
Contractual liabilities
•
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
•
Engaging clients on contractual terms through
dedicated in-house team
•
Contract legal playbook with risk framework to
identify the high-risk clauses and plan appropriate
controls to mitigate the risks
•
Multi-layered governance process for contract
approval
•
Dedicated teams to adhere to, monitor and audit
contractual obligations
•
Comprehensive Board-level monitoring, reporting
and governance of contractual risks
Complex and evolving
regulatory environment
•
If we are not able to comply with the existing
complex regulatory landscape (e.g., immigration,
wages, tax, data privacy regulations), 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
•
Comprehensive compliance framework, policies,
controls and program to identify the changes to
the regulatory landscape, assess their impact and
implement appropriate actions
•
Regular connect with regulatory authorities and
compliance experts to identify and assess changes
to the regulatory landscape
•
Contract awareness programs and trainings for
employees and vendors
•
Periodic compliance certification with clear
accountability and responsibility defined
•
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 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.
McCamish cybersecurity incident
Infosys McCamish Systems (“McCamish”) engaged cybersecurity
and other specialists to assist in its investigation of and response
to its November 2023 cybersecurity incident and remediation
and restoration of impacted applications and systems. By
December 31, 2023, McCamish, with external specialists’
assistance, substantially remediated and restored the affected
applications and systems. Actions taken by McCamish also
included investigative analysis conducted by a third-party
cybersecurity firm to determine, among other things, whether
and the extent to which data was subject to unauthorized access
or exfiltration and engaging a third-party eDiscovery vendor in
assessing the extent and nature of such data.
McCamish in coordination with its third-party eDiscovery
vendor has identified up to approximately 6.5 million individuals
whose information was subject to unauthorized access and
exfiltration in the November 2023 cybersecurity incident. The
information associated with each individual varies, but the
data as a whole includes information such as email and mailing
addresses, phone numbers, birth dates, social security numbers
and other identification numbers, usernames, passwords,
financial and customer account numbers, policy numbers,
salaries and personal medical information. However, not all
of these individuals had all of this information accessed and
exfiltrated. McCamish also identified corporate customers
whose business data was subject to unauthorized access and
exfiltration. McCamish has notified its impacted customers and
intends to work with these customers to support their respective
reporting obligations, as appropriate. McCamish’s review
process is ongoing.
Infosys has undertaken a review of its cybersecurity posture and
threat landscape to build further fortification and to strengthen
its cyber defense capabilities. As an organization, we continue to
review and strengthen our cybersecurity processes and controls
across our entire network in line with industry best practices.
Infosys Integrated Annual Report 2023-24
152
INDEPENDENT PRACTITIONER’S REASONABLE ASSURANCE REPORT ON IDENTIFIED
SUSTAINABILITY INFORMATION IN INFOSYS LIMITED’S BUSINESS RESPONSIBILITY AND
SUSTAINABILITY REPORT
To the Board of Directors
of INFOSYS LIMITED
1. We have undertaken to perform reasonable assurance engagement, for INFOSYS LIMITED (the “Company”) vide our engagement
letter dated March 25, 2024 in respect of the agreed Sustainability Information listed below (the “Identified Sustainability Information”
or “BRSR Core indicators”) in accordance with the Criteria stated in paragraph 3 below. This Sustainability Information is included in
the Business Responsibility and Sustainability Report (the “BRSR” or the “Report”) of the Integrated Annual Report (the “IAR”) of the
Company for the year ended March 31, 2024. This engagement was conducted by our multidisciplinary team including assurance
practitioners, environmental engineers and specialists.
2. Identified Sustainability Information
Our scope of reasonable assurance consists of the BRSR Core indicators listed in the Appendix I to our report. The reporting boundary
of the Report is as disclosed in Question 13 and Question 23(a) of Section A: General Disclosure of the BRSR with exceptions disclosed
by way of note under respective questions of the BRSR, where applicable.
Our reasonable assurance engagement was with respect to the year ended March 31, 2024 information only and we have not
performed any procedures with respect to earlier periods, other than certain BRSR Core indicators for the year ended March 31, 2023
referred to in Note 1 to the Appendix I and, therefore, do not express any opinion thereon.
3. Criteria
The Criteria used by the Company to prepare the Identified Sustainability Information is as under:
• Regulation 34(2)(f) of the Securities and Exchange Board of India (the “SEBI”) (Listing Obligations and Disclosure Requirements),
Regulations, 2015 as amended;
• Business Responsibility and Sustainability Reporting Requirements for listed entities per Master Circular No. SEBI/HO/CFD/PoD2/
CIR/P/2023/120 dated July 11, 2023; and
• SEBI Circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023 and clarifications thereto issued by SEBI.
4. Management’s Responsibility
The Company’s management is responsible for selecting or establishing suitable criteria for preparing the Sustainability Information
including the reporting boundary of the Report, taking into account applicable laws and regulations, if any, related to reporting on
the Sustainability Information, identification of key aspects, engagement with stakeholders, content, preparation and presentation
of the Identified Sustainability Information in accordance with the Criteria. This responsibility includes design, implementation
and maintenance of internal control relevant to the preparation of the Report and the measurement of Identified Sustainability
Information, which is free from material misstatement, whether due to fraud or error.
5. Inherent limitations
The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows
for different, but acceptable, measures and measurement techniques and can affect comparability between companies.
6. Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code of Ethics issued by the Institute
of Chartered Accountants of India (the “ICAI”) and the SEBI Circular No. SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023,
and its clarifications thereto and have the required competencies and experience to conduct this assurance engagement.
We apply Standard on Quality Control (the “SQC”) 1, “Quality Control for Firms that Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services Engagements”, and accordingly maintain a comprehensive system of quality
control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and
applicable legal and regulatory requirements.
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153
7. Our Responsibility
Our responsibility is to express a reasonable assurance opinion on the Identified Sustainability Information listed in Appendix I based
on the procedures we have performed and evidence we have obtained.
We conducted our engagement in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000, “Assurance
Engagements on Sustainability Information”, and Standard on Assurance Engagements (SAE) 3410 “Assurance Engagements on
Greenhouse Gas Statements” (together the “Standards”), both issued by the Sustainability Reporting Standards Board (the “SRSB”) of
the ICAI.
These Standards require that we plan and perform our engagement to obtain reasonable assurance about whether the Identified
Sustainability Information listed in Appendix I and included in the Report are prepared, in all material respects, in accordance with the
Criteria.
As part of reasonable assurance engagement in accordance with the Standards, we exercise professional judgment and maintain
professional skepticism throughout the engagement.
8. Reasonable Assurance
A reasonable assurance engagement involves identifying and assessing the risks of material misstatement of the Identified
Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances.
The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed,
inspection of documents, evaluating the appropriateness of quantification methods and reporting policies, analytical procedures and
agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed above, we:
• Obtained an understanding of the Identified Sustainability Information and related disclosures;
• Obtained an understanding of the assessment criteria and their suitability for the evaluation and/or measurements of the Identified
Sustainability Information;
• Made inquiries of Company’s Management, including environment team, compliance team, human resource team amongst others
and those with the responsibility for preparation of the Report;
• Obtained an understanding and performed an evaluation of the design of the key systems, processes and controls for recording,
processing and reporting on the Identified Sustainability Information at the corporate office and at other locations/offices on a
sample basis. This included evaluating the design of those controls relevant to the engagement and determining whether they have
been implemented by performing procedures in addition to inquiry of the personnel responsible for the Identified Sustainability
Information;
• Based on the above understanding and the risks that the Identified Sustainability Information may be materially misstated,
determined the nature, timing and extent of further procedures;
• Tested the Company’s process for collating the sustainability information through agreeing or reconciling the Identified
Sustainability Information with the underlying records on a sample basis;
and
• Tested the consolidation for locations/offices on a sample basis and corporate office under the reporting boundary for ensuring the
completeness of data being reported.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our reasonable assurance opinion.
9. Exclusions
Our assurance scope excludes the following and therefore we do not express an opinion on:
• Aspects of the Reports and the data/information (qualitative or quantitative) other than the Identified Sustainability Information;
and
• The statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided by the
Company.
10. Other information
The Company’s Management is responsible for the Other information. The Other information comprises the information included
within the BRSR, the IAR and the Environment Social and Governance (the “ESG”) Report, other than Identified Sustainability
Information and our independent assurance reports dated May 31, 2024 thereon.
Our opinion on the Identified Sustainability Information does not cover the Other information and we do not express any form of
assurance thereon.
In connection with our assurance engagement of the Identified Sustainability Information, our responsibility is to read the Other
information and, in doing so, consider whether the Other information is materially inconsistent with the Identified Sustainability
Information or otherwise appears to be materially misstated.
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154
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.
11. Reasonable Assurance Opinion
Based on the procedures we have performed and the evidence we have obtained, the BRSR Core indicators for the year ended March
31, 2024 listed in Appendix I and certain BRSR Core indicators for the year ended March 31, 2023 referred to in Note 1 to the Appendix I
are prepared in all material respects, in accordance with the Criteria as below:
• Regulation 34(2)(f) of the Securities and Exchange Board of India (the “SEBI”) (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended;
• Business Responsibility and Sustainability Reporting Requirements for listed entities per Master Circular No. SEBI/HO/CFD/PoD2/
CIR/P/2023/120 dated July 11, 2023, and
• SEBI Circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023 and clarifications thereto issued by SEBI.
12. Other matter
Select BRSR Core indicators of the Company for the year ended March 31, 2023 were assured by the previous assurance practitioner
who had expressed an unmodified opinion on May 29, 2023.
Our opinion is not modified in respect of this matter.
13. Restriction on use
Our Reasonable Assurance report has been prepared and addressed to the Board of Directors of the Company at the request of the
Company solely, to assist the Company in reporting on Company’s sustainability performance and activities. Accordingly, we accept
no liability to anyone, other than the Company. Our Reasonable Assurance report should not be used for any other purpose or by any
person other than the addressees of our report. We neither accept nor assume any duty of care or liability for any other purpose or to
any other party to whom our report is shown or into whose hands it may come without our prior consent in writing.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm’s Registration No. 117366W / W-100018)
Pratiq Shah
Partner
Membership No. 111850
UDIN: 24111850BKJLJV7589
Place: New Delhi
Date: May 31, 2024
Infosys Integrated Annual Report 2023-24
155
APPENDIX I
Identified Sustainability Information subject to Reasonable Assurance
Sr. No
Reporting Standard Reference
Indicator number
Section C: Principle [P] Wise Performance Disclosures- Essential Indicators [E]
1
P-1: Businesses should conduct and govern
themselves with integrity, and in a manner that
is Ethical, Transparent and Accountable.
E-8: Number of days of accounts payables ((Accounts payable *365) / Cost
of goods/services procured). (Refer Note 1)
E-9: Details of concentration of purchases and sales with trading
houses, dealers, and related parties along-with loans and advances and
investments, with related parties. (Refer Note 1)
2
P-3: Businesses should respect and promote
the well-being of all employees, including
those in their value chains.
E-1c: Spending on measures towards well-being of employees and
workers (including permanent and other than permanent. (Refer Note 1)
E-11: Details of safety related incidents.
3
P-5: Businesses should respect and
promote human rights.
E-3b: Gross wages paid to females as % of total wages paid by the
entity. (Refer Note 1)
E-7: Complaints filed under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
4
P-6: Businesses should respect and make
efforts to protect and restore the environment.
E-1: Details of total energy consumption (in Joules or multiples)
and energy intensity.
E-3: Disclosures related to water withdrawal and consumption.
E-4: Details related to water discharged.
E-7: Details of greenhouse gas emissions (Scope 1 and Scope 2
emissions) and its intensity.
E-9: Total weight of waste generated in metric tons, and a breakdown of
this total by composition of the waste.
5
P-8: Businesses should promote inclusive
growth and equitable development.
E-4: Percentage of input material (inputs to total inputs by value)
sourced from suppliers.
E-5: Job creation wages paid to persons employed (including employees
or workers employed on a permanent or non-permanent / on contract
basis), as % of total wage cost. (Refer Note 1).
6
P-9: Businesses should engage with
and provide value to their consumers in
a responsible manner.
E-7: Information relating to data breaches.
Note:
1. Our reasonable assurance engagement also included performing procedures with respect to these BRSR Core Indicators for the previous year ended
March 31, 2023.
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156
Infosys has always placed sustainability at the heart of
its business approach. Our ability to fulfill and exceed
our responsibilities to our stakeholders is a testament to
our commitment. We have balanced our business success
with an 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.
We adopted the GRI Framework in 2008 and in fiscal 2013,
we were among the first companies to publish the Business
Responsibility Report (BRR).
The BRSR follows the National Guidelines on Responsible
Business Conduct (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.
Business Responsibility and Sustainability Report
Statutory reports
Infosys Integrated Annual Report 2023-24
157
Section A: General Disclosure
I Company details
1. Corporate Identity Number (CIN) of the Listed Entity
L85110KA1981PLC013115
2. Name of the Listed Entity
Infosys Limited
3. Year of incorporation
July 02, 1981
4. Registered office address
Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India
5. Corporate address
Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India
6. E-mail id
askus@infosys.com
7. Telephone
+91-80-2852 0261
8. Website
www.infosys.com
9. Financial year for which reporting is being done
April 2023 – March 2024
10. Name of the Stock Exchange(s) where shares are listed
In India, the Company’s equity shares are listed on the
•
BSE Limited
•
National Stock Exchange of India Limited (NSE)
The ADSs are listed on the New York Stock Exchange in the US.
11. Paid-up capital
`2,071 crore
12. Name and contact details (telephone, email address) of the person who may be
contacted in case of any queries on the BRSR report
ARUNA C. NEWTON
Vice President – Head – Diversity, Equity and Inclusion
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. There are certain re-statements made to address changes in methodology
while ensuring comparability and consistency.
14. Name of assurance provider
Deloitte Haskins & Sells LLP
15. Type of assurance obtained
BRSR core indicators – Reasonable
Select BRSR indicators – Reasonable / Limited
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158
II Products / services
16. 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)
Software application development and
maintenance, and IT consulting. Further
details are provided in the Management
Discussion and Analysis section of this
Integrated Annual Report.
94.5
17. Products / services sold by the entity (accounting for 90% of the entity’s turnover)
S. No.
Product / service
NIC code
% of total turnover contributed
1
Software application development and maintenance,
IT consulting and digital services
620 and 631
94.5
III Operations
18. Number of locations where plants and / or operations / offices of the entity are situated
Location
Number of plants
Number of offices
Total
National
NA
55
265
International
NA
210
19. Markets served by the entity
a. Number of locations(1)
Locations
Number
National (No. of states)
12
International (No. of countries)
93
(1) Denotes the locations of our clients
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 as exports are considered in relation to India
c. A brief on types of customers
Business to business
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IV Employees
20. Details as at the end of fiscal:
a. Employees and workers (including differently-abled)
S. No.
Particulars
Total (A)
Male
Female
No. (B)
% (B / A)
No. (C)
% (C / A)
Employees
1
Permanent (D)
3,17,240
1,92,671
60.7
1,24,569
39.3
2
Other than permanent (E)(1)
23,447
18,804
80.2
4,643
19.8
3
Total employees (D + E)
3,40,687
2,11,475
62.1
1,29,212
37.9
Workers(2)
4
Permanent (F)
NA
5
Other than permanent (G)
6
Total employees (F + G)
b. Differently-abled employees and workers(3)
S. No.
Particulars
Total (A)
Male
Female
No. (B)
% (B / A)
No. (C)
% (C / A)
Differently-abled employees
1
Permanent (D)
1,130
826
73.1
304
26.9
2
Other than permanent (E)
–
–
–
–
–
3
Total employees (D + E)
1,130
826
73.1
304
26.9
Differently-abled workers(2)
4
Permanent (F)
NA
5
Other than permanent (G)
6
Total differently-abled workers (F + G)
(1) ‘Other than permanent’ employees includes contractors
(2) We do not have any workers.
(3) Employees who have voluntarily disclosed their disabilities
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21. Participation / Inclusion / Representation of women (including differently-abled)
Total (A)
No. and percentage of women
No. (B)
% (B / A)
Board of Directors
9
2
22.2
Key Management Personnel(1)
3
0
–
As on March 31, 2024
(1) Key Management Personnel are Chief Executive Officer and Managing Director (CEO & MD), Chief Financial Officer (CFO) and Company Secretary (CS).
22. Turnover rate* for permanent employees and workers (Disclose trends for the past 3 years)
Turnover rate in fiscal 2024 (In %)
Turnover rate in fiscal 2023 (In %)
Turnover rate in fiscal 2022 (In %)
Male
Female
Total
Male
Female
Total
Male
Female
Total
Permanent employees
12.6
12.5
12.6
21.1
20.6
20.9
28.7
26.1
27.7
Other than permanent employees
We do not calculate turnover of contract staff as they are hired for a fixed contract period, by design.
* Voluntary attrition for IT services excluding business process management services, products and platforms
V. Holding, subsidiary and associate companies (including joint ventures)
23. (a) Names of holding / subsidiary / associate companies / joint ventures(1)
S.No
Name of the holding /
subsidiary / associate
companies / joint ventures (A)
Indicate whether holding/ subsidiary/
associate/ joint venture
% of shares held by listed entity
Does the entity indicated at column A,
participate in the Business Responsibility
initiatives of the listed entity? (Yes/No)(2)
(1) Refer to Annexure 1 of the Board’s report for information on holding / subsidiary / associate companies / joint ventures.
(2) Our subsidiaries contribute data required for the preparation of this report.
VI. CSR details
24. (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013:
Yes
(ii) Turnover (In ` crore)(1)
1,24,014 *
(iii) Net worth (In ` crore)(1)
67,745 *
(1) As per the standalone financial statements under Ind AS
* Denotes fiscal 2023 numbers
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Infosys Integrated Annual Report 2023-24
161
VII. Transparency and disclosures compliances
25. Complaints / grievances on any of the principles under the National Guidelines on Responsible Business Conduct
Stakeholder group from whom
complaint is received(1)
Grievance redressal mechanism in place
(Yes/No) (If Yes, then provide web-link
for grievance redress policy)
Fiscal 2024
Fiscal 2023
Number of
complaints
filed during
the year
Number of
complaints
pending
resolution at
close of the
year
Remarks
Number of
complaints
filed during
the year
Number of
complaints
pending
resolution at
close of the
year
Remarks
Communities
Foundation@infosys.com
–
–
–
–
Investors (Other than shareholders)(2)
Investors@infosys.com
–
–
–
–
Shareholders
Investors@infosys.com
819 (2)
–
3,568 (2)
–
Employees and workers
HEAR@infosys.com, GRB@infosys.com
180
19
189
20
Customers(3)
53
10
79
1
Value chain partners
vendorgrievances@infosys.com
–
–
–
–
Other
–
–
–
–
(1) For all our stakeholders: whistleblower@infosys.com
(2) The Company does not track complaints from investors and shareholders separately. During the year, the Company has modified its policy of classifying shareholders grievances / complaints.
(3) Complaints from customer projects primarily received through the complaints management system have been considered.
26. Overview of the entity’s material responsible business conduct issues. Please indicate material responsible business conduct and sustainability issues pertaining to
environmental, social and governance matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate
the risk along with its financial implications, as per the following format
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
Financial implications of the risk
(Indicate positive or negative
implications)
1
Environment :
Climate
change
Risk
–
Climate change risks are increasingly
manifesting in our business as
strategic, physical and transitional
(market and compliance) risks, which
if not managed adequately, can
affect our operations, reputation and
profitability.
–
Refer to the Infosys ESG data book 2023-24
for details on risk mitigations.
Negative : Increased operating
costs in meeting the environmental
standards
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162
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
Financial implications of the risk
(Indicate positive or negative
implications)
2
Environment :
Engaging
clients on
climate
actions
through our
solutions
Opportunity
–
Increased revenue through
development and / or expansion
of services to help our customers
manage their climate change risks.
–
Savings from use of lower-emission
sources of energy
–
Lead action globally on climate
change through advocacy
Positive : Scope to improve Infosys’
competitiveness and capitalize
on evolving client preferences
by leveraging our expertise in
sustainability, low carbon transition
and digital/IT to support our clients
on their sustainability and low carbon
journey
3
Societal :
Facilitating
best-in-class
employee
experience
Risk
–
Inability to facilitate best-in-class
employee experience may impact
our ability to attract, hire, train,
engage and retain talent
–
Employee engagement and care
–
Holistic employee retention and recognition
policies
–
Career and leadership development focus
– Occupational health and safety measures
Negative : Impact on employer
reputation, increased cost of talent,
etc.
4
Societal :
Tech for Good
platforms and
solutions for
e-governance,
healthcare
and education
Opportunity
–
The development and adoption of
advanced technologies, including
smart automation and artificial
intelligence, have the potential
to raise productivity and solve
larger challenges for the benefit of
the community while facilitating
the achievement of SDGs. Digital
technologies and platforms have
been used successfully in consumer
technologies and provide an
opportunity to apply these to ensure
social good.
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.
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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
Financial implications of the risk
(Indicate positive or negative
implications)
5
Governance :
Data
privacy and
information
management
Risk
–
Cyber attacks that breach our
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, client satisfaction
or result in significant regulatory
penalties.
–
Robust cybersecurity strategy, framework,
processes, policies and controls to improve
cyber resilience.
–
Robust data privacy framework, policies,
processes and controls
–
Multi-layered governance process with
executive and the Board’s oversight to review
cybersecurity and data privacy risks and our
preparedness to mitigate and respond to
such risks.
–
Continued investment in technologies to
address the risks of the evolving cyber threat
landscape
–
Close collaboration with cyber intelligence
and forensic agencies to identify and
prepare for emerging cybersecurity threats,
periodic table-top exercises and keep the
cybersecurity crisis plan up to date
–
Regular awareness programs and trainings
along with a rigorous consequence
management process
–
Periodic reviews, testing and audits
Negative : Increased operating
cost to hire and train talent and
technology investments
6
Governance :
Being
recognized
as industry
leader in our
information
security
practices and
adoption
of leading
data privacy
standards
Opportunity
–
Increasing revenue from
cybersecurity service offerings and
solutions
–
Being recognized as an industry
leader in our information security
practices, and adoption of leading
data privacy standards across global
operations will result in higher client
confidence.
Positive : Minimize cybersecurity and
data privacy breach threats to Infosys
and our customers through advanced
cybersecurity solutions and adoption
of leading data privacy standards
* For the complete list of material topics, read ESG report 2024: Materiality and stakeholder engagement
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164
Section B: Management and process disclosures
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.
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)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
1b. Has the policy been
approved by the Board?
(Yes / No)
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
1c. Web link of the
policies, if available
Refer to the
Whistleblower
Policy,
Infosys Code of
Conduct and
Ethics
Refer to the
Supplier Code
of Conduct
Refer to
Infosys Code
of Conduct
and Ethics,
HSE Policy
Refer to our
CSR Policy
and ESG
vision 2030
Refer to our
Supplier Code
of Conduct,
Human rights
statement(1)
Refer to our
HSE Policy(1)
Refer to our
ESG vision
2030
Refer to our
CSR Policy,(2)
Responsible
Supply Chain
and Supplier
Diversity Policy,
Supplier Code
of Conduct
Refer to our
Infosys Code
of Conduct
and Ethics,
ESG Vision
2030, Privacy
statement
2. Whether the entity has
translated the policy into
procedures. (Yes / No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
3. Do the enlisted policies
extend to your value
chain partners? (Yes / No)
Yes
Yes
No
No
Yes
Yes
No
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.
ISO 9001:2015;
GRI Standard
2021, UNGC
Principles,
OECD-Principles
of Corporate
Governance,
UN SDGs
ISO 9001:2015,
GRI Standard
2021,
ISO 14001:2015,
CMMi
ISO 9001:2015,
GRI Standard
2021, ISO
45001:2018,
Universal
Declaration
of Human
Rights, ILO
Declaration on
Fundamental
Principles
and Rights at
Work, UNGC
Principles
ISO 9001:2015,
GRI Standard
2021, ISO
14001:2015,
ISO
45001:2018
ISO 9001:2015,
ISO 14001:2015,
ISO 45001:2018,
GRI Standard
2021, Universal
Declaration
of Human
Rights, ILO
Declaration on
Fundamental
Principles
and Rights at
Work, UNGC
Principles
ISO 9001:2015,
GRI Standard
2021,
ISO 14001:2015,
PAS 2060:2014,
ISO 45001:2018,
ISO22301:2019
SASB,
TCFD, UN
SDGs, Carbon
Disclosure
Project (CDP)
ISO
9001:2015, ISO
14001:2015, ISO
45001:2018,
GRI Standard
2021, UNGC
Principles
ISO 9001:2015,
ISO 14001:2015,
ISO 45001:2018,
GRI Standard
2021,
UN SDGs
ISO 9001:2015,
GRI Standard
2021,
ISO 27001:2022,
ISO 27701:2019,
SASB
5. Specific commitments,
goals and targets set by
the entity with defined
timelines, if any.
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.
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6. Performance of the
entity against the specific
commitments, goals
and targets along with
reasons in case the same
are not met.
Yes. The details of our performance on our ESG goals are available in the chapters Approaching value creation and Delivering value in this Integrated
Annual Report and ESG Report 2024.
(1) Approved by the Executive Leadership.
(2) Not extended to Suppliers
Governance, leadership and oversight
7. Statement by director responsible for the Business Responsibility Report, highlighting ESG-related challenges, targets and achievements
“Infosys is committed to nurturing a sustainable and socially responsible business. The company’s ongoing ESG aspirations are reflected in the Infosys ESG Vision 2030 that
articulates how the company can continue to be a well-governed organization and inclusive workplace for diverse talent with community strategies to leverage technology
for good.”
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)
Policy
Implementation – authority
Oversight – authority
Composition of highest authority
responsible for oversight
Whistleblower Policy and
Infosys Code of Conduct and Ethics
General Counsel and Compliance officer
Audit Committee
Refer to the Audit Committee section in
the Corporate governance report of this
Integrated Annual Report
Responsible Supply Chain and Supplier
Diversity Policy and
Supplier Code of Conduct
Global head – Procurement
ESG Committee
Refer to the ESG Committee section in
the Corporate governance report of this
Integrated Annual Report
CSR Policy
Global Head – Corporate Accounting and
Taxation
CSR Committee
Refer to the CSR Committee section in
the Corporate governance report of this
Integrated Annual Report
ESG Vision 2030
Chief Financial Officer
ESG Committee
Refer to the ESG Committee section 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.
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Subject for review
Indicate whether review was undertaken by
Director / Committee of the Board / Any other
committee
Frequency (Annually / Half-yearly / Quarterly /
Any other – please specify)
P1
P2
P3
P4
P5
P6
P7
P8
P9
P1
P2
P3
P4
P5
P6
P7
P8
P9
10. Details of review of
NGRBCs by the Company
Performance against above policies and follow
up action
Committee of the Board
Annually
Compliance with statutory requirements of
relevance to the principles, and, rectification of
any non-compliance
Committee of the Board
Quarterly
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.
Principles
P1
P2
P3
P4
P5
P6
P7
P8
P9
Answer
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Notes:
• BSI conducted the ISO 27001:2022 and ISO 9001:2015 certification audits.
• BVC conducted the ISO 9001:2015, ISO 27701:2019, ISO 27001:2022 and ISO 22301:2019 certification audits.
• KPMG conducted the CMMI 2.0 certification audit.
• DNV conducted the ISO 14001:2015 and ISO 45001:2018 certification audits.
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)
Not applicable
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)
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Section C: Principle-wise performance disclosure
This section is aimed at helping entities demonstrate their performance in integrating the principles and core elements with key processes and decisions. The information sought is
categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators
may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is
ethical, transparent and accountable
Essential indicators
1. Percentage coverage by training and awareness programs on any or all the principles in the financial year
Segment
Total number of training and
awareness programs held
Topics / principles covered under the training and
its impact
% age of persons in respective category
covered by the awareness programs
Board of Directors and Board
Committees
The Board members also completed an online ESG learning module covering global ESG
disclosures, Infosys’ ESG performance and best practices. Refer to the Training of Board
members section in the Corporate governance report in the Integrated Annual Report.
100
Key Managerial Personnel (KMP)(1)
5
Infosys Code of Conduct and Ethics, climate change,
environmental sustainability, social sustainability,
data privacy and cybersecurity
100
Employees other than BoD and KMPs(1)
5
Infosys Code of Conduct and Ethics, climate change,
environmental sustainability, social sustainability,
data privacy and cybersecurity
100
Workers
NA
NA
NA
(1) Apart from year-long awareness campaigns through email on responsible business and related topics, all our employees have access to an exclusive learning channel on Lex, our internal learning
platform and Infosys Springboard, our flagship digital 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):
Monetary
NGRBC Principle
Name of the
regulatory/ enforcement agencies/
judicial institutions
Amount (In INR)
Brief of the case
Has an
appeal been
preferred? (Yes/
No)
Penalty / fine
Refer to the Company’s website for all disclosures made under Regulation 30 of SEBI (Listing Obligations and Disclosure
Obligations) Regulations, 2015 at https://www.infosys.com/investors/reports-filings/exchange-filings.html.
Settlement
–
–
–
–
Compounding fee
–
–
–
–
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Non-Monetary
NGRBC Principle
Name of the
regulatory/ enforcement agencies/
judicial institutions
Brief of the case
Has an appeal been preferred? (Yes/No)
Imprisonment
–
–
–
Punishment
–
–
–
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.
Case Details
Name of the regulatory/ enforcement agencies/ judicial institutions
Refer to the Company’s website for all disclosures made under Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 at
https://www.infosys.com/investors/reports-filings/exchange-filings.html.
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:
Fiscal 2024
Fiscal 2023
Directors
–
–
KMPs
–
–
Employees
–
–
Workers
NA
NA
6. Details of complaints with regard to conflict of interest:
Fiscal 2024
Fiscal 2023
Number
Remarks
Number
Remarks
Number of complaints received in relation to issues of conflict of interest of the Directors
–
–
Number of complaints received in relation to issues of conflict of interest of the KMPs
–
–
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7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators / law enforcement agencies / judicial
institutions, on cases of corruption and conflicts of interest
Not applicable
8. Number of days of accounts payable ((Accounts payable *365) / Cost of goods/services procured) in the following format
Fiscal 2024
Fiscal 2023
Number of days of accounts payable
43
44
9. Openess of business provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances and
investments, with related parties, in the following format:
Parameter
Metrics
Fiscal 2024
Fiscal 2023
Concentration of purchases
a. Purchases from trading
houses as % of total purchases
–
–
b. Number of trading houses where
purchases are made from
c. Purchases from top 10 trading houses as
% of total purchases from
trading houses
Concentration of sales
a. Sales to dealers / distributors as % of
total sales
–
–
b. Number of dealers / distributors to
whom sales are made
c. Sales to top 10 dealers
/ distributors as % of
total sales to dealers / distributors
Share of RPTs in *
a. Purchases (Purchases with related
parties / Total purchases)
–
–
b. Sales (Sales to related parties / Total
sales)
c. Loans and advances (Loans and
advances given to related parties / Total
loans and advances)
d. Investments
(Investments in related parties / Total
investments made)
* As per the consolidated financial statements under Ind AS
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Leadership indicators
1. Awareness programs conducted for value chain partners on any of the principles during the financial year:
Total number of awareness programs held
Topics / principles covered under the training(1)
% age of value chain partners covered (by value
of business done with such partners) under the
awareness programs(2)
5 (1)
Climate change and best practices in data capture, monitoring,
and reporting on climate change disclosures, water
management, waste management, human rights, occupational
health and safety, Anti-Bribery and Anti-Corruption
75.4
(1) 5,600+ suppliers were enabled on ESG awareness programs through the ESG learning portal.
(2) Our assessment covers upstream value chain partners (suppliers).
2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.
Yes. The Company receives disclosure of interest at regular intervals from the Board.
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PRINCIPLE 2:
Businesses should provide goods and services in a manner that is sustainable and safe
Essential indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D
and capex investments made by the company, respectively.
Fiscal 2024
Fiscal 2023
Details of improvements in environmental and
social impacts
R&D(1)
20.7
26.7
Education, training and assessment of employees
to upskill and reskill. Technology spent to improve
environmental and social products and processes
Capex(1)
3.4
3.1
Efficient equipment for cooling, lighting, renewable
energy, water management, waste management and
sustainable material
(1) Based on standalone financial statements under Ind AS
2a. Does the company have procedures in place for sustainable sourcing? (Yes / No)
Yes
2b. If yes, what percentage of inputs were sourced sustainably?
All our procurements follow the principles of sustainable sourcing. We require suppliers to accept the Supplier Code of Conduct, which is based on the UNGC Principles. We do not
have a policy of computing the value of inputs sourced sustainably.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for
(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): 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
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
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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.
PRINCIPLE 3:
Businesses should respect and promote the well-being of all employees, including those in their value chains
Essential indicators
1a. Details of measures for the well-being of employees
% of employees covered
Category
Total (A)
Health insurance
Accident insurance
Maternity benefits
Paternity benefits
Day care facilities(1)
Number
(B)
% (B /
A)
Number (C)
% (C /
A)
Number (D)
% (D / A)
Number (E)
% (E / A)
Number (F)
% (F / A)
Permanent employees
Male
1,92,671
1,92,671
100
1,92,671
100
NA
NA
1,92,671
100
–
–
Female
1,24,569
1,24,569
100
1,24,569
100
1,24,569
100
NA
NA
–
–
Total
3,17,240
3,17,240
100
3,17,240
100
1,24,569
100
1,92,671
100
–
–
Other than permanent employees
Male
Vendors and contractors are required to adhere to statutory compliances as per the respective rules of the state.
Female
Total
(1) We provide onsite, proximity and network (near home) childcare support options for our employees in India, based on their preference.
1b. Details of measures for the well-being of workers:
Not applicable
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1c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format
Fiscal 2024
Fiscal 2023
Cost incurred on well- being measures as a % of total revenue of the company
1.1
1.2
2. Details of retirement benefits, for current and previous financial years
Fiscal 2024
Fiscal 2023
Benefits
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)
PF
100
NA
Y
100
NA
Y
Gratuity
100
NA
Y
100
NA
Y
ESI(1)
5
NA
Y
9
NA
Y
National Pension Scheme (NPS)(2)
2.8
NA
Y
2.3
NA
Y
Others – superannuation(3)
10
NA
Y
11
NA
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
we operate.
(1) All eligible employees covered under the Employees State Insurance Act (“ESIC”), 1948 are provided the benefit.
(2) Pertains to contribution made by employers for employees who have opted for the same.
(3) Eligible employees are participants to superannuation retirement benefits.
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 Infosys in India are accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.
Yes, the entity has an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016.
https://www.infosys.com/careers/discover/culture/documents/diversity-inclusion-policy.pdf
5. Return to work and retention rates of permanent employees and workers that took parental leave.
Gender
Permanent employees(1)
Permanent workers
Return to work rate (In %)
Retention rate (In %)
Return to work rate (In %)
Retention rate (In %)
Male
99.9
82.3
NA
NA
Female
99.2
74.1
Total
99.5
78.2
Based on the recommendations of GRI standard 401-3.
(1) 100% of our permanent employees are eligible for parental leaves.
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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.
Yes/No (If Yes, then give details of the mechanism in brief)
Permanent workers
NA
Other than permanent
workers
Permanent employees
Infosys is committed to providing a safe and positive work environment as enshrined in our Code of Conduct. Employees and contract staff have
access to a well-established robust grievance resolution mechanism known as resolution hubs where they can highlight matters or concerns faced at
the workplace.
For more information, refer to Resolution hubs available in the Management Discussion and Analysis section of this Integrated Annual Report.
Other than permanent
employees
7. Membership of employees and workers in association(s) or unions recognized by the listed entity:
Category
Fiscal 2024
Fiscal 2023
Total employees
/ workers in
respective
category (A)
No. of employees /
workers in respective
category, who are part
of association(s) or
Union (B)
% (B / A)
Total employees
/ workers in
respective
category (C)
No. of employees /
workers in respective
category, who are part
of association(s) or
Union (D)
% (D / C)
Total permanent employees
3,17,240
9,431
3.0
3,43,234
8,848
2.6
Male
1,92,671
6,095
3.2
2,07,879
5,510
2.7
Female
1,24,569
3,336
2.7
1,35,355
3,338
2.5
Total permanent workers
NA
Male
Female
8. Details of training of employees and worker (% to total no. of employees / workers in the category):
Fiscal 2024 (1)
Fiscal 2023 (1)
Total (A)
On health and safety
measures(2)
On skill upgradation
Total (D)
On health and safety
measures(2)
On skill upgradation
No. (B)
% (B / A)
No. (C)
% (C / A)
No. (E)
% (E / D)
No. (F)
% (F / D)
Male
1,92,671
1,92,671
100
1,79,663
93.2
2,07,879
2,07,879
100
1,85,211
89.1
Female
1,24,569
1,24,569
100
1,15,925
93.1
1,35,355
1,35,355
100
1,22,439
90.4
Total
3,17,240
3,17,240
100
2,95,588
93.2
3,43,234
3,43,234
100
3,07,650
89.6
(1) Only for permanent employees
(2) Includes awareness programs
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9. Details of performance and career development reviews of employees and workers
Category
Fiscal 2024
Fiscal 2023
Total (A)(1)
No. (B)
% (B / A)
Total (C)(1)
No. (D)
% (D / C)
Employees
Male
1,57,504
1,57,504
100
1,33,642
1,33,642
100
Female
1,02,420
1,02,420
100
87,121
87,121
100
Total
2,59,924
2,59,924
100
2,20,763
2,20,763
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. In line with our strategy, our HSEMS at all Indian locations is certified to ISO 45001:2018 standard. 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 such as emotional well-being, mental health, ergonomics, safety, lifestyle diseases and more. Well-equipped occupational health
centers are available at all our campuses in India. During the year, doctors and physiotherapists have helped employees and their families 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 proactively identify occupational health and safety risks, 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 conditions, 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 at work and those associated with the operation of utilities and employees’ commute.
Participation and consultation with relevant personnel involved in the activities is ensured during the risk assessments. Risks are also assessed before and post the development of
new buildings. Experience from previous projects and current operations is 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
11. Details of safety related incidents, in the following format:
Safety incident / number
Category
Fiscal 2024 (1)
Fiscal 2023 (1)
Lost Time Injury Frequency Rate (LTIFR) (per one million-
person hours worked)
Employees(2)
0.127
0.376
Workers(3)
NA
NA
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Safety incident / number
Category
Fiscal 2024 (1)
Fiscal 2023 (1)
Total recordable work-related injuries
Employees(2)
23
33
Workers(3)
NA
NA
No. of fatalities
Employees(2)
0
0
Workers(3)
NA
NA
High consequence work-related injury or ill-health
(excluding fatalities)
Employees(2)
0
0
Workers(3)
NA
NA
(1) India operations
(2) Includes ‘other than permanent’ employees
(3) Infosys does not have workers.
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
Infosys acknowledges that Occupational Health and Safety (OH&S) is one of the key aspects of sustainable business practices. OH&S policies, processes, and practices at Infosys
promote physical, mental, and social well-being of employees in the workplace. The robust Health and Safety Management system at Infosys has earned us the certification of
ISO 45001:2018 for all Indian locations, including Infosys Limited and its subsidiaries, in line with our HSE strategy.
The Company has the following measures to ensure a safe and healthy workplace:
1. Incident management: Incidents which include near misses / potential hazards / accidents are reported through internal applications, supervisors, or mails and root
causes of incidents are identified, analyzed and appropriate corrective actions are taken to avoid recurrence or occurrence of incidents leading to injuries / losses.
2. OH&S Committee: Both employees and contract workers are a part of the Infosys OH&S Committee which helps in ensuring their active participation and consultation.
3. Training and awareness: Training includes awareness building, mock drills, classroom sessions and periodic demonstrations. HSEMS training is a part of our employee
induction program. To enable continuous learning, a HSE awareness module is available on Lex, our internal learning platform. Job-specific and generic trainings are
conducted for contractual staff during induction and later through refresher trainings.
4. Safety interventions: We have always focused on building a culture of safety at Infosys. The safety systems in place include work permits, trainings, Lock Out Tag Out
(LOTO), safety inspections, audits, operational controls, and monitoring. Policies have been established focusing on specific areas such as women’s safety, lone working,
transport, travel, construction, amongst others.
5. Medical services: We have set up first aid centers on our campuses in India. Some of the first aid facilities are operational round the clock. Our telemedicine portal
continues to operate and allows employees to consult the doctors at our occupational health centers in India online. Ambulance services are available at all our
locations in India round the clock.
6. Health Risk Assessment: HRA is carried out annually based on inputs from the OHC. Being an IT / ITES company, the prevalent risks include ergonomics, Musculoskeletal
Disorders (MSDs), emotional well-being, etc., associated with workplace, operation of utilities, and commute. Numerous initiatives, interventions, engagement virtual
sessions, and process controls are in place to address these risks.
7. Programs on ergonomics: These include on-site physiotherapy centres, interventions by ergonomic experts and providing ergonomic infrastructure.
8. Physical and emotional well-being: At our locations in India, we have dietitians to provide counseling and guidance. We have also set up state-of-the-art gyms to train
physical and mental fitness.
9. Programs for mothers: Pregna Care, a professional health care program is designed especially for expectant mothers and aims at providing maximum comfort to
the mother.
10. Working environment: We also focus on improving the work environment by monitoring indoor air quality, lux and noise levels and promoting the use of green
seal chemicals.
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13. Number of complaints on the following made by employees and workers:
Fiscal 2024
Fiscal 2023
Filed during the year
Pending resolution at
the end of year
Filed during the year
Pending resolution at
the end of year
Working conditions
16
0
26
0
Health and safety
11
0
30
0
14. Assessment for the year for health and safety:
Our HSEMS is certified to ISO 45001:2018 standard audited by certifying bodies annually. The scope of HSEMS is applicable to 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
% of your plants and offices that were assessed (by entity or statutory authorities or third parties)(1)
Health and safety practices
100
Working conditions
100
(1) India operations
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.
There have been no significant risks / concerns arising from assessments of health and safety practices and working conditions. Stringent operation controls such as maker and
checker control points are deployed across the operational areas. These are also monitored on a periodic basis.
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)
(A) Yes
(B) Not applicable
2. Provide the measures undertaken by the entity 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 2024
Fiscal 2023
Fiscal 2024
Fiscal 2023
Employees
0
0
0
0
Workers
NA
NA
NA
NA
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4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or
termination of employment? (Yes / No)
Yes
5. Details on assessment of value chain partners
% of value chain partners (by value of business done with such partners) that were assessed*
Working conditions
58.7
Health and safety
58.7
* We have completed ESG assessment of 328 top suppliers as at March 31, 2024.
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working
conditions of value chain partners
There were no significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners.
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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential indicators
1. Describe the processes for identifying key stakeholder groups of the entity
We identify and prioritize our stakeholders based on the impact of the Company on the stakeholders and the ability of the stakeholder groups to influence the functioning of the
Company. As part of the materiality assessment, we have identified six key stakeholder groups: Investors/shareholders, clients, employees and sub-contractors, suppliers/partners,
government/regulators and the community. The ESG Committee of the Board also approves the continued relevance of the material matters encompassing the views of our
stakeholders on an annual basis.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Stakeholder group
Whether identified
as vulnerable or
marginalized
(Yes/No)
Channels of communication (Email, SMS, newspaper,
pamphlets, advertisement, community meetings, notice
board, website, others (please specify)
Frequency of
engagement
(Annually/ Half-
yearly/ Quarterly
/ others – please
specify)
Purpose and scope of engagement
including key topics and concerns raised
during such engagement
Investors
No
•
Investors calls, emails, and personal meetings
•
Analyst meets
•
Conferences (including broker-led events)
•
Quarterly results
•
Annual General Meeting
•
Sustainability report
•
Financial reports
•
India stock exchange filings (NSE and BSE)
•
US Securities and Exchange Commission (SEC) filings
•
Press releases
•
Social media
Ongoing
•
To answer queries of investors on
Infosys’ ambitions and progress
•
Build transparency with existing and
potential investors
Employees
No
•
Employee satisfaction surveys
•
Employee resource groups
•
Resolution hubs and whistleblower mechanism
•
Communication blogs
•
Development centers’ engagement initiatives
•
InfyMe (internal intranet) and podcasts
Ongoing
•
Communicate the employee value
proposition
•
Keep a finger on pulse of employee
engagement
•
Provide an opportunity to raise
concerns
•
Training and development
•
Employee recognition and
engagement activities
•
Performance review and career
development
•
Employee health, safety, and
well-being
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Stakeholder group
Whether identified
as vulnerable or
marginalized (Yes/
No)
Channels of communication (Email, SMS, newspaper,
pamphlets, advertisement, community meetings, notice
board, website, others (Pls specify)
Frequency of
engagement
(Annually/ Half
yearly/ Quarterly
/ others – please
specify)
Purpose and scope of engagement
including key topics and concerns raised
during such engagement
Clients
No
•
Client visits and meetings
•
Customer satisfaction surveys
•
Annual customer conclaves
Ongoing
•
Engage with clients on Infosys
solutions and services, including
climate change solutions
•
Seek client feedback on our
solutions and services and
continuously improve to meet their
expectations
•
Develop relationships and
partnerships with clients enabling
delivery of high-quality client
services and solutions
•
Communicate Infosys’ credentials
including ESG credentials
Government and
regulatory bodies
No
•
Engagement with government and global forums
•
Policy advocacy and representations
•
Engagement with industry bodies which have
government participation
Periodic
•
Share ESG best practices
•
Participate in forums to strengthen
the adoption of responsible
business practices
•
Participation / aid in drafting
regulations / public policies
•
Share a perspective on global
standards and alignment with
international benchmarking
Communities
Yes
•
Meetings with associations / NGOs
•
Local community interactions
•
Social media
Ongoing
•
Enable access to digital skilling
•
Serve the community through Tech
for Good programs in education,
healthcare, and governance
•
Enable participation of diverse
communities in the economy
•
CSR engagement through Infosys
Foundation
Suppliers
No
•
Suppliers meet, Sambandh (bi-annual)
•
ESG report
•
Supplier engagement on ESG
Ongoing
•
Engage with suppliers to strengthen
awareness through training
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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.
We have identified our most material issues through a data-driven and consultative exercise. The material topics were shortlisted and prioritized based on their impact on our
stakeholders and our business. Periodic meetings were held to update the sub-committees of the Board.
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. Our material topics were shortlisted and prioritized based on their impact on our stakeholders and our business. The material topics and the linked ambitions can be accessed
through our ESG vision 2030 and performance updates through our annual ESG Reports.
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. Infosys contributes as a part of
its CSR initiatives to Infosys Foundation. 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/.
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 2024
Fiscal 2023
Total (A)
No. of employees /
workers covered (B)
% (B / A)*
Total (C)
No. of employees /
workers covered (D)
% (D / C)*
Employees
Permanent
3,17,240
3,10,135
97.7
3,43,234
3,43,234
100
Other than permanent(1)
23,447
19,346
82.5
24,891
24,891
100
Total employees
3,40,687
3,29,481
96.7
3,68,125
3,68,125
100
Workers
Permanent
NA
NA
NA
NA
NA
NA
Other than permanent
NA
NA
NA
NA
NA
NA
Total workers
NA
NA
NA
NA
NA
NA
* The Code of Conduct expresses Infosys’ commitment to conducting business ethically and in accordance with the values of the Company while respecting the human rights of all stakeholders. All
employees are trained on the Code during their induction into the organization.
(1) Covered through the Supplier Code of Conduct and in-person sessions
Our Human Rights Statement is a part of the Code of Conduct which is approved by the Board on an annual basis.
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Category
Fiscal 2024
Fiscal 2023
Total
employees
(A)*
Equal to minimum wage
More than minimum wage
Total
employees
(D)
Equal to minimum wage
More than minimum wage
No. (B)
% (B /A)
No. (C)
% (C /A)
No. (E)
% (E /D)
No. (F)
% (F /D)
Permanent employees
Male
1,61,214
1,345
0.83
1,59,869
99.17
1,73,086
3,856
2.23
1,69,230
97.77
Female
1,04,118
1,743
1.67
1,02,375
98.33
1,13,084
5,040
4.46
1,08,044
95.54
Other than permanent employees
Male
Vendors and contractors are required to adhere to statutory compliances as per the state rules.
Female
* India only
2. Details of minimum wages paid to employees and workers, in the following format:
Infosys operates in 56 countries, and employees are hired across geographies. The legal minimum is defined based on various parameters like tenure, role, location, citizenship
status, etc., and it varies by country and even by state within some countries. We have defined detailed processes considering these parameters to ensure the employees are paid
according to local regulations and we are compliant with local laws, as applicable.
3. Details of remuneration/salary/wages:
a. Median remuneration / wages:
Male
Female
Number
Median remuneration / salary / wages of
respective category (` crore)
Number
Median remuneration /
salary / wages of respective category (` crore)
Board of Directors (BoD)
6*
2.29
2
2.23
Key Managerial Personnel (KMP)(1)
3
10.74
–
–
Employees(2) other
than BoD and KMP
Junior
71,039
0.04
59,265
0.04
Middle
86,831
0.12
56,878
0.11
Senior
34,798
0.32
8,426
0.27
Total
1,92,668
0.11
1,24,569
0.07
Workers
NA
NA
NA
NA
As on March 31, 2024
* Remuneration to Chief Executive Officer and Managing Director (CEO & MD) has been included in KMP.
(1) Key Managerial Personnel include Chief Executive Officer and Managing Director (CEO & MD), Chief Financial Officer (CFO) and Company Secretary (CS).
(2) Includes permanent employees only
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b. Gross wages paid to females as % of total wages paid by the entity, in the following format
Fiscal 2024
Fiscal 2023
Gross wages paid to females as % of total wages*
29.4
29.3
* Includes permanent employees only
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 as enshrined in our Code of Conduct. Employees and contract staff have access to a well-established robust
grievance resolution mechanism known as resolution hubs where they can highlight matters or concerns faced at the workplace including those pertaining to human rights.
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 2024
Fiscal 2023
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
98
13 (1)
Incidents of sexual harassment
were reviewed as per the
requirements of POSH Act in
India and as per the established
grievance redressal process.
78
11 (2)
Incidents of sexual
harassment were
reviewed as per the
requirements of POSH
Act in India and as
per the established
grievance redressal
process.
Discrimination at
workplace
82
6 (1)
Incidents pertaining to
discrimination were reviewed as
per the established grievance
redressal process for HEAR.
111
9 (2)
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
–
–
–
–
–
–
(1) As on May 28, 2024, we have eight ASHI cases and five cases of discrimination at workplace, pending resolution.
(2) All the pending cases in fiscal 2023 were resolved.
A robust feedback mechanism ensures employee feedback and concerns are heard and addressed in a timely manner. Read more at
https://www.infosys.com/about/esg/social/employee-wellbeing/resolution-hubs.html
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7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:
Fiscal 2024
Fiscal 2023
Total complaints reported under Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act,
2013 (POSH)
64
31
Complaints on POSH as a % of female employees / workers
0.06
0.03
Complaints on POSH upheld
61
26
8. 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 ensures 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 reports of an
integrity concern or question. We support those who support our values.
9. Do human rights requirements form part of your business agreements and contracts? (Yes / No)
Yes
10. Assessments for the year:
% of your plants and offices that were assessed (by entity or statutory authorities or
third parties)*
Child labor
100
Forced / involuntary labor
100
Sexual harassment
100
Discrimination at workplace
100
Wages
100
Others – please specify
–
* India operations, as per the assessment plan for the year
11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above
There were no significant risks / concerns arising from the human rights assessments.
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Leadership indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints
None
2. Details of the scope and coverage of any human rights due diligence conducted.
Infosys is committed to providing a healthy and safe work environment, which is integral to our Code of Conduct. 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 remind
employees of the expectations of maintaining a respectful workplace for everyone. A periodic ‘Pulse’ survey rolled out to employees solicits feedback on various topics, including
human rights.
All suppliers must mandatorily sign the Infosys Supplier Code of Conduct, which contains Human Rights clauses. Our ESG learning portal for our suppliers includes topics on human
rights, and our supplier ESG assessments include human rights-related topics.
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, 2016, India.
4. Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners) that were assessed*
Sexual harassment
58.7
Discrimination at workplace
58.7
Child labor
58.7
Forced labor / involuntary labor
58.7
Wages
58.7
Others – please specify
No significant risks / concerns noted for the suppliers assessed
* We have completed ESG assessment of 328 top suppliers as at March 31, 2024.
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.
There were no significant risks / concerns arising from the assessments.
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PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
Essential indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format
Parameter
Fiscal 2024 (in GJ)
Fiscal 2023 (in GJ)
From renewable sources
Total electricity consumption (A)
4,85,753
3,59,644
Total fuel consumption (B)
0
0
Energy consumption through other sources (C)
0
0
Total energy consumption (A + B + C)
4,85,753
3,59,644
From non-renewable sources
Total electricity consumption (D)
3,12,952
3,52,490
Total fuel consumption (E)
40,743
38,852
Energy consumption through other sources (F)
0
0
Total energy consumed from non- renewable sources (D + E + F)
3,53,695
3,91,342
Total energy consumed (A + B + C + D + E + F)(1)
8,39,448
7,50,986
Energy intensity per rupee of turnover (Total energy consumed / revenue from operations)
0.000000546
0.000000512
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total energy
consumed / Revenue from operations adjusted for PPP)(2)
0.00001224
0.00001134
Energy intensity in terms of physical output (GJ / capita / annum)
2.46
2.04
Energy intensity (optional) – the relevant metric may be selected by the entity
Nil
Nil
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, Deloitte Haskins & Sells LLP
(1) Includes global energy consumption
(2) The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor published by the IMF- for India. For the years ended March 31, 2024 and March 31, 2023, it is 22.401
and 22.167, respectively.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India?
(Y / N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Not applicable for IT sector
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Parameter
Fiscal 2024
Fiscal 2023
Water discharge by destination and level of treatment (in kilolitres)
(i) To surface water
NA
NA
– No treatment
– With treatment – please specify level of treatment
(ii) To groundwater
NA
NA
– No treatment
– With treatment – please specify level of treatment
(iii) To seawater
NA
NA
– No treatment
– With treatment – please specify level of treatment
(iv) Sent to third-parties
– No treatment
– With treatment – please specify level of treatment(1)
3,21,316
0
3. Provide details of the following disclosures related to water:
Parameter
Fiscal 2024 (in kl)
Fiscal 2023 (in kl)
Water withdrawal by source (in kilolitres)
(i) Surface water
Nil
Nil
(ii) Groundwater
53,715
54,617
(iii) Third-party water
19,44,975
19,93,801
(iv) Seawater / desalinated water
Nil
Nil
(v) Others (rainwater)
2,62,929
2,26,261
Total volume of water withdrawal (i + ii + iii + iv + v)(1)
22,61,619
22,74,679
Total volume of water consumption (in kilolitres)
22,61,619
22,74,679
Water intensity per rupee of turnover (Total water consumption / Revenue from operations)
0.00000147
0.00000155
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total water
consumption / Revenue from operations adjusted for PPP)
0.00003297
0.00003436
Water intensity in terms of physical output (kl / capita / annum)
6.64
6.18
Water intensity (optional) – the relevant metric may be selected by the entity
Nil
Nil
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, Deloitte Haskins & Sells LLP
(1) Includes global water consumption
4. Provide the following details related to water discharged:
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5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.
All sewage generated on campus in our India locations 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.
6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format
Parameter
Please specify unit
Fiscal 2024
Fiscal 2023
NOx
Kg
52,524
26,015
SOx
Kg
1,333
1,126
Particulate matter (PM)
Kg
3,812
3,442
Persistent organic pollutants (POP)
NA
NA
NA
Volatile organic compounds (VOC)
NA
NA
NA
Hazardous air pollutants (HAP)
NA
NA
NA
Others – please specify
NA
NA
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, Deloitte Haskins & Sells LLP
7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity, in the following format :
Parameter
Unit
Fiscal 2024
Fiscal 2023
Total Scope 1 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)(1)
Metric tonnes of CO2
equivalent
7,150
8,593
Total Scope 2 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)(2)
Metric tonnes of CO2
equivalent
55,881
62,352
Total Scope 1 and Scope 2 emissions per
rupee of turnover (Total Scope 1 and
Scope 2 GHG emissions / Revenue from
operations)
Metric tonnes of CO2
equivalent per Rupee
0.000000041
0.000000048
Parameter
Fiscal 2024
Fiscal 2023
(v) Others
NA
NA
– No treatment
– With treatment – please specify level of treatment
Total water discharged (in kilolitres)(2)
3,21,316
0
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, Deloitte Haskins & Sells LLP
(1) Treatment in centralized sewage treatment plants is managed by local authorities.
(2) Includes one leased location in India and all leased overseas locations. Water is discharged to municipal sewers and finally treated.
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Parameter
Unit
Fiscal 2024
Fiscal 2023
Total Scope 1 and Scope 2 emission
intensity per rupee of turnover adjusted for
Purchasing Power Parity (PPP) (Total Scope
1 and Scope 2 GHG emissions / Revenue
from operations adjusted for PPP)
tCO2 e / PPP
0.00000092
0.00000107
Total Scope 1 and Scope 2 emission
intensity in terms of physical output
tCO2 e / capita / annum
0.19
0.19
Total Scope 1 and Scope 2 emission
intensity (optional) – the relevant metric
may be selected by the entity
Nil
Nil
Nil
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, Deloitte Haskins & Sells LLP
(1) Scope 1 emissions cover all owned offices (India, US and China) and leased offices in India; Leased space in overseas locations will not be considered as it is falls in de-minimus for diesel / natural gas
consumption.
(2) Scope 2 includes India and overseas locations.
8. 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 Scope 1, 2 and 3 emissions. Our approach to carbon neutrality is based on reducing and avoiding emissions through energy
efficiency and renewable energy. Energy efficiency is achieved through super-efficient new buildings, industry-leading Energy Performance Index (EPI) <70 kWh/m2-yr, real-time
monitoring and optimization of building operations through smart building systems, and retrofits in existing buildings. Infosys has implemented several retrofit projects (across
air conditioning, lighting, and UPS systems) in the past and achieved a connected electrical load reduction of 36 MW across campuses in India. In fiscal 2024, we have undertaken
a retrofit project to replace direct FCU units with chilled water units of air conditioning, which saved 1.1 lakh kWh and reduced emissions by 80.84 tCO2e. To achieve our goal of
transitioning to clean energy, we have installed 60.2 MWp of solar PV capacity.
9. Provide details related to waste management by the entity, in the following format:
Parameter
Fiscal 2024
Fiscal 2023
Total waste generated (in metric tonnes)
Plastic waste (A)
132.80
128.58
E-waste (B)
470.41
813.37
Biomedical waste (C)
124.84
106.02
Construction and demolition waste (D)
38,340.11*
10,861.63
Battery waste (E)
139.23
132.64
Radioactive waste (F)
0.12
3.62
Other hazardous waste. Please specify, if any. (G)
98.68 (1)
57.47
Other non-hazardous waste generated (H). Please specify, if any. (Break-up by composition i.e. by
materials relevant to the sector)
10,277.39 (2)
8,956.44
Total (A + B + C + D + E + F + G + H)(3)
49,583.58
21,059.77
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Parameter
Fiscal 2024
Fiscal 2023
Waste intensity per rupee of turnover (Total waste generated / Revenue from operations)
0.0000000322
0.0000000143
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total waste
generated / Revenue from operations adjusted for PPP)
0.0000007228
0.0000003181
Waste intensity in terms of physical output (MT / capita / annum)(4)
0.03
0.03
Waste intensity (optional) – the relevant metric may be selected by the entity
Nil
Nil
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
Category of waste
Fiscal 2024
Fiscal 2023
(i) Recycled
46,639.05
9,022.89
(ii) Reused
215.86
1,066.94
(iii) Other recovery operations
63.60
70.73
Total
46,918.51
10,160.56
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
Fiscal 2024
Fiscal 2023
(i) Incineration
154.94
118.55
(ii) Landfilling
2,395.88
10,781.84
(iii) Other disposal operations
114.25
0
Total
2,665.07
10,900.39
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, Deloitte Haskins & Sells LLP
* 3 construction and demolition sites generated substantial C&D waste.
(1) Used oil and waste residue containing oil, toner, and cartridges, discarded containers, and other hazardous miscellaneous waste
(2) Food, garden waste, metal waste, paper waste, thermocol, textile, glass waste and other inert waste
(3) This includes waste generated in India, overseas owned (Indianapolis and Shanghai) and e-waste for all locations globally.
(4) Excludes C&D waste
10. 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.
The 5R principle –’ Reduce, Reuse, Refurbish, Repurpose and Recycle’ – forms the foundation of Infosys’ waste management strategy. Through our efforts, we turn waste into
resources and thus support a circular economy. Infosys has adopted a comprehensive waste management policy that emphasizes the collection, sorting and disposal of waste.
Waste management practices at Infosys include source segregation, secondary segregation, effective waste processing and collection, recycling and efficient disposal of all waste in
accordance with relevant laws. This helps reduce negative impacts on the environment.
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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.
This year, we achieved TRUE Zero Waste Certification for our owned campuses in Bengaluru, Chennai Mcity and Pune Phase-2 through Green Business Certification Inc. (GBCI).
The e-waste is always sent back to original manufacturers (under buyback schemes) or authorized recyclers who provide us certificates on the successful recycling and recovery of
the material. Other hazardous waste like biomedical waste, oil-soaked cotton, oil filters from DG sets, and other trash are designated by the Central Pollution Control Board (CPCB)
and the State Pollution Control Board (SPCB). These agencies incinerate the waste in compliance with rules and regulations. The resulting ash is diverted for use in the production of
cement in a few places and delivered to Treatment, Storage, Disposal Facility (TSDF) landfills for safe disposal.
11. 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:
Not applicable
12. 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
Amendment in EC of IT Park at
MIDC, Rajiv Gandhi, Infotech
Park-II, Hinjewadi, Pune,
Maharashtra by M/s Infosys Ltd.
S.O. 1533(E)
14.09.2006
Yes
Yes
https://parivesh.nic.in/
newupgrade/#/trackYourProposal
13. 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. Infosys is compliant with all applicable environmental law/ regulations/ guidelines in India.
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Parameter
Fiscal 2024
Fiscal 2023
Water withdrawal by source (in kilolitres)
(i) Surface water
Nil
Nil
(ii) Groundwater
53,715
54,617
(iii) Third-party water
16,43,182
15,04,501
(iv) Seawater / desalinated water
Nil
Nil
(v) Others (rainwater)
2,62,929
2,26,261
Total volume of water withdrawal
(in kilolitres)
19,59,826
17,85,379
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
Nil
Nil
Water discharge by destination and level of treatment (in kilolitres)
(i) Into surface water
Nil
Nil
– No treatment
– With treatment – please specify level of
treatment
(ii) Into groundwater
Nil
Nil
– No treatment
– With treatment – please specify level of
treatment
(iii) Into seawater
Nil
Nil
– No treatment
– With treatment – please specify level of
treatment
Leadership indicators
1. 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: There are 10 water stress zones : India, Australia, Israel, Mauritius, Mexico, Philippines, Romania, South Africa, Spain, UAE
(ii) Nature of operations: IT/ITES services
(iii) Water withdrawal, consumption and discharge in the following format:
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2. Please provide details of total Scope 3 emissions and its intensity, in the following format:
Parameter
Unit
Fiscal 2024
Fiscal 2023
Total Scope 3 emissions (Break-up of the GHG into CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3, if available)(1)
Metric tonnes of CO2
equivalent
1,80,737
1,83,976 (2)
Total Scope 3 emissions per rupee of turnover
Metric tonnes of CO2
equivalent per Rupee
0.000000117
0.000000125
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity
Nil
Nil
Nil
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, Deloitte Haskins & Sells LLP
(1) Starting this year, emissions associated with employees’ hotel stays are calculated and included in the business travel emissions.
(2) Addition of emissions associated with hotel accomodation in business travel. Refer ESG Databook Annexure 4:GHG Emissions for details
3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant direct & indirect impact of the entity
on biodiversity in such areas along-with prevention and remediation activities.
NA
4. 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
S.No.
Initiative undertaken
Details of the initiative (Web-link, if any, may be provided
along-with summary)
Outcome of the initiative
1
Received an Indian patent (No.
473792) for the product Retroshade
Retroshade is a shading device that will help conserve energy and improve
thermal comfort.
‘Retroshade’ can eliminate direct
solar radiation on the glass
façade, which will help reduce the
solar heat gains on the building
envelope.
Parameter
Fiscal 2024
Fiscal 2023
(iv) Sent to third-parties
– No treatment
– With treatment – please specify level of
treatment
77,845 (1)
Nil
(v) Others
Nil
Nil
– No treatment
– With treatment – please specify level of
treatment
Total water discharged (in kilolitres)
77,845
Nil
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, Deloitte Haskins & Sells LLP
(1) Includes one leased location in India, and overseas leased offices in water stress regions. Treatment in centralized sewage treatment plants is managed by local authorities.
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S.No.
Initiative Undertaken
Details of the initiative (Web-link, if any, may be provided
along-with summary)
Outcome of the initiative
2
Green buildings
We continue to expand our green building portfolio with the highest level of
green certification.
We have achieved highest green
building rating for 29.6 million
square feet which includes owned
and leased premises.
3
Innovative technologies in our new
buildings
Our new buildings are equipped with innovative technologies like shading
devices, radiant cooling and high performance façade systems such as
double-glazed systems with Argon-filled gas. Also, all our new buildings are
undergoing LCA to assess the embodied carbon footprint, among the first in
the industry.
The innovative technologies used in
our new buildings have resulted in
Energy performance index (EPI) of
lower than 70 kWh/m2/year.
5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Infosys has a Business Continuity Management System (BCMS) called Phoenix, certified by ISO 22301:2019 Security and Resilience – Business Continuity Management
Standard. This program is designed to ensure seamless continuity of business and the utmost safety of employees and organization assets while continuously meeting
client expectations. 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. Infosys has a business continuity and disaster
recovery plan called the Phoenix plan at the corporate level, and comprehensive business continuity plans are created at three operational levels covering business
functions, locations, and accounts. Integrated into our Enterprise Risk Management Framework, the BCMS plans guide our typical response to events, such as catastrophes
and 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. The management system has been continuously
validated across levels through tests and exercises, and various incidents have been successfully tackled without any significant business continuity or employee safety
impacts. An efficient business continuity management policy has enabled us to maintain the status quo during disasters.
6. 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.
As per ESG assessment of 328 top suppliers, no significant adverse impacts to environment were identified.
7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.
58.7*
* We have completed ESG assessment of 328 top suppliers as at March 31, 2024.
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PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a
manner that is responsible and transparent
Essential indicators
1. a. Number of affiliations with trade and industry chambers / associations.
The Company has affiliations with various trade and industry chambers associations and these are tracked and managed by units independently.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to.
S.
No.
Name of the trade and industry chambers / associations*
Reach of trade and industry chambers / associations
(State / National)
1
National Association of Software and Services Companies (NASSCOM)
National
2
US Chamber of Commerce
International
3
Confederation of Indian Industry (CII)
National
4
World Economic Forum (WEF)
International
5
Bitkom
International
6
TechUK
International
7
Data Security Council of India
National
8
US-India Strategic Partnership Forum (USISPF)
International
9
US-India Business Council (USIBC)
International
10
Tech Council of Australia
International
* Indicative list
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
No adverse orders were received from regulatory authorities.
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Leadership indicators
1. Details of public policy positions advocated by the Company:
Infosys’ approach includes 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. Read more at
https://www.infosys.com/investors/corporate-governance/Documents/CodeofConduct.pdf.
S.No
Public policy
advocated
Method resorted for such advocacy
Whether information is
available in public domain
(Yes/No)
Frequency of review by the Board
(Annually/Half-yearly/quarterly/others-please
specify)
Web link, if
available
1
EU AI Act
Meetings and submissions to the EU
Commission, Council and Parliament
Yes – activity registered in EU
transparency register
Annual – One time
NA
2
Artificial
Intelligence
adoption within
UK DWP
Meetings with the ministry
accompanied by written briefings
No
Annual
NA
3
Digital Personal
Data Protection
(DPDP) Bill, India
The Company actively participated in
drafting the India DPDP Bill
No
Periodic
NA
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PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
Essential indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year
Not applicable – we have no SIA notification(1)
Name and brief details of
project
SIA Notification No.
Date of notification
Whether conducted by
independent external agency
(Yes / No)
Results communicated in
public domain (Yes / No)
Relevant Web link
NA
NA
NA
NA
NA
NA
(1) This Act is applicable only to India
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(1)
S.No
Name of project for which R&R is ongoing
State
District
No. of Project Affected Families
(PAFs)
% of PAFs covered by
R&R
Amounts paid to PAFs in the
FY (In INR)
NA
NA
NA
NA
NA
NA
NA
(1) This Act is applicable only to India
3. Describe the mechanisms to receive and redress grievances of the community.
We track complaints, if any, from beneficiaries of our CSR projects. Complaints are received at feedback_if@infosys.com. In fiscal 2024, no complaints and grievances were received.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers
Fiscal 2024
Fiscal 2023*
Directly sourced from MSMEs / small producers
7.1
7.8
Directly from within India
25.3
26.7
* Change in computational methodology
5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract
basis) in the following locations, as % of total wage cost
Location
Fiscal 2024*
Fiscal 2023*
Rural
1.3
1.3
Semi-urban
0.9
0.4
Urban
15.9
15.8
Metropolitan
81.9
82.5
(Place categorized as per RBI Classification System – rural / semi-urban / urban / metropolitan)
* Permanent employees at our India locations have been considered.
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S.
No
State
Aspirational district *
Amount spent
(In `)
1
Andhra Pradesh
Y.S.R Kadapa
29,50,538
2
Andhra Pradesh
Visakhapatnam
4,44,85,752
3
Andhra Pradesh
Vizianagaram
2,809,960
4
Assam
Barpeta
1,60,772
5
Assam
Darrang
1,20,757
6
Assam
Goalpara
1,64,494
7
Assam
Hailakandi
2,90,566
8
Assam
Baksa
80,48,101
9
Assam
Udalguri
80,17,621
10
Bihar
Begusarai
1,75,710
11
Bihar
Gaya
3,30,703
12
Bihar
Khagaria
1,23,446
13
Bihar
Muzaffarpur
1,91,473
14
Jammu And Kashmir
Baramulla
1,00,000
15
Jharkhand
Bokaro
1,34,812
16
Jharkhand
East Singhbhum
2,04,42,896
17
Jharkhand
Ranchi
6,35,719
18
Kerala
Wayanad
4,07,311
19
Madhya Pradesh
Chatttarpur
25,13,097
20
Madhya Pradesh
Damoh
4,31,24,544
21
Madhya Pradesh
Khandwa
6,58,545
22
Madhya Pradesh
Guna
3,87,771
23
Madhya Pradesh
Vidisha
1,73,00,906
24
Madhya Pradesh
Singrauli
33,53,688
25
Maharashtra
Gadchiroli
37,86,941
S.
No
State
Aspirational district *
Amount spent
(In `)
26
Maharashtra
Nandurbar
2,93,329
27
Maharashtra
Osmanabad
4,11,478
28
Manipur
Chandel
1,89,477
29
Meghalaya
Ribhoi
1,43,000
30
Odisha
Rayagada
1,87,565
31
Punjab
Ferozepur
2,39,129
32
Rajasthan
Baran
42,82,332
33
Rajasthan
Dholpur
48,43,115
34
Rajasthan
Jaisalmer
1,09,65,421
35
Rajasthan
Karauli
42,25,801
36
Rajasthan
Sirohi
75,81,307
37
Sikkim
West District
1,43,244
38
Tamil Nadu
Ramanathapuram
2,19,848
39
Tamil Nadu
Virudhunagar
10,90,135
40
Uttar Pradesh
Bahraich
1,05,994
41
Uttar Pradesh
Shrawasti
1,06,106
42
Uttarakhand
Haridwar
2,79,765
43
Karnataka
Raichur
83,62,087
44
Karnataka
Yadgir
38,61,016
45
Maharashtra
Washim
3,38,831
46
Various districts – with spend less than one lakh
11,77,248
Total
20,97,62,351
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
Details of negative social impact identified
Corrective action taken
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies
Note:
* 109 out of the 112 aspirational districts were covered in fiscal 2024.
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3. a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized / vulnerable groups? (Yes/No): Yes
From which marginalized / vulnerable groups do you procure?: We do not track this separately.
What percentage of total procurement (by value) does it constitute?: We do not track this separately.
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
S.No.
Intellectual Property based on traditional knowledge
Owned/ Acquired (Yes/No)
Benefit shared (Yes / No)
Basis of calculating benefit share
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
Name of authority
Brief of the Case
Corrective action taken
6. Details of beneficiaries of CSR projects:
S.
No
CSR project
No. of persons
benefitted from
CSR projects
% of beneficiaries
from vulnerable and
marginalised groups
1
Sri Chamarajendra
Zoological Gardens
35,73,080
13
2
Infosys Springboard –
Digital literacy
27,06,911
27
3
Mudipu road
construction
9,12,500
–
4
Art & Photography
Foundation
6,54,794
–
5
Ramakrishna Sarada
Mission Matri Bhavan
3,14,287
87
6
AIIMS – DELHI
2,96,996
–
7
Society for
Advancement of Human
Endeavor
2,58,300
44
8
Improved cook stove
projects – Udaipur Urja
Initiatives
2,20,090
80
9
Visakha Jilla Nava
Nirmana Samiti
1,92,221
–
S.
No
CSR project
No. of persons
benefitted from
CSR projects
% of beneficiaries
from vulnerable and
marginalised groups
10
Electronic City Industrial
Township Authority
1,65,857
–
11
Victoria Hospital
1,13,771
32
12
Shivganga Samagra
Gramvikas Parishad
92,989
35
13
The Antara Foundation
77,662
100
14
Indian Redcross Society,
PGIMER – Dharmashala
77,098
–
15
Improved cookstove
projects – Envirofit India
Private Ltd
74,400
–
16
Bhandarkar Oriental
Research Institute
71,058
31
17
SGBS Unnati Foundation
68,801
43
18
Banaras Hindu
University
68,313
34
19
Yuva Rural Association
60,185
66
20
Arpan DC Trust –
Paathshala Education
58,000
100
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S.
No
CSR project
No. of persons
benefitted from
CSR projects
% of beneficiaries
from vulnerable and
marginalised groups
21
Sri Jayadeva Institute of
Cardiovascular Sciences
& Research
57,796
41
22
Agastya International
Foundation
55,000
47
23
Biogas Project – SKG
Sangha
53,316
64
24
Biogas Project –
Savayava Krushi Parivara
51,900
62
25
Sistema Bagalkote
48,286
51
26
Malligavad Foundation
45,025
44
27
Arpan DC Trust –
PGIMER
39,600
-
28
Data Security Council
of India
33,098
6
29
Bharatiya Vidya Bhavan
29,671
55
30
Improved cook stove
projects – Global
Himalayan Expedition
28,138
97
31
eVidyaloka Trust
20,285
99
32
Infant and Maternity
Hospital – Kanakpura
16,827
100
S.
No
CSR project
No. of persons
benefitted from
CSR projects
% of beneficiaries
from vulnerable and
marginalised groups
33
Chennai flood
relief efforts – Sri
Ramakrishna
Sevashrama
16,000
–
34
Skill programs
15,180
40
35
Punjab and Himachal
Pradesh flood relief
efforts
14,200
–
36
SEARCH Gadchiroli,
MCH Hospital
13,622
100
37
Sikkim flood relief
efforts
12,000
–
38
Raksha Foundation
10,000
100
39
Saraswathi Education
and Welfare Trust
10,000
100
40
Various beneficiaries
less than 10,000
90,093
42
Total
1,07,17,350
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 and emails received from
beneficiaries.
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PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
We prioritize our clients’ satisfaction and have a comprehensive system in place to address their feedback and complaints. Our clientele, which spans diverse industry verticals, is
equipped with multiple channels to voice their concerns and provide feedback.
Every complaint is treated with the appropriate level of attention. Our dedicated teams meticulously analyze the issues raised, devise suitable solutions and implement them
effectively. We place great emphasis on transparency towards our clients throughout the process. Therefore, we keep them informed of progress and seek their approval for
corrective actions.
In addition to addressing complaints, we proactively engage with our clients to understand their expectations, gather feedback and gain insight into their future outlook. This
valuable information is crucial to our strategic planning and continuous improvement initiatives. Doing so ensures that our services align with our clients’ evolving needs and
expectations fostering a strong and enduring business relationship.
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.
As a percentage to total turnover
Environmental and social parameters relevant to the product
NA
Safe and responsible usage
NA
Recycling and / or safe disposal
NA
3. Number of consumer complaints in respect of the following:
Fiscal 2024
Remarks
Fiscal 2023
Remarks
Received during
the year
Pending
resolution at end
of year
Received during
the year
Pending
resolution at end
of year
Data privacy(4)
0
0
0
0
–
Advertising(1)
NA
NA
NA
NA
Cybersecurity(2)
1
1
0
0
–
Delivery of essential services
NA
NA
NA
NA
Restrictive trade practices
0
0
0
0
Unfair trade practices
0
0
0
0
Other(3)
52
9
79
1
(1) We are a B2B company. The promotions we do is with regard to our services and thought leadership. The provision of services is governed by contracts between the parties.
(2) Material incident and includes a substantiated data privacy complaint.
(3) Complaints from customer projects that are raised through the complaints management system have been considered.
(4) Only substantiated complaints are reported
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4. Details of instances of product recalls on account of safety issues
Number
Reasons for recall
Voluntary recalls
NA
NA
Forced recalls
NA
NA
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- aligned to NIST’s CyberSecurity Framework (CSF) and supported by supplementary policies,
processes, procedures, and standards to achieve and sustain enterprise-level information security objectives. Read more at
https://www.infosys.com/about/corporate-responsibility/governance/information-management.html.
Infosys has a Data Privacy Policy published on the Company’s intranet, which demonstrates the Management’s commitment to data privacy across all Infosys operations, including
those involving service providers. To ensure complete transparency, we provide privacy notices at the data collection point for internal and external data subjects.
The privacy statement for external data subjects is also readily available on the Infosys website at, Personal Information Privacy Statement | Infosys.
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.
Infosys has reviewed its cybersecurity posture, technology, and threat landscape to build further fortification and strengthen its cyber defense capabilities. As an organization, we
continue to review and strengthen our cybersecurity processes and controls across our entire network in line with industry best practices.
7. Provide the following information relating to data breaches:
a. Number of instances of data breaches: 1*
b. Percentage of data breaches involving personally identifiable information of customers: 100%
c. Impact, if any, of the data breaches: Impact of data breach for the incident reported is a part of Infosys’ public disclosure. Incident management is ongoing.
* Material data breaches considered
Leadership indicators
1. Channels / platforms where information on products and services of the Company can be accessed
Refer to https://www.infosys.com/services.html.
2. Steps taken to inform and educate consumers, especially vulnerable and marginalised consumers, about safe and responsible usage of products and services.
Not applicable
3. Mechanisms in place to inform consumers of any risk of disruption / discontinuation of essential services.
Not applicable
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 regularly 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 understand the client’s expectations and needs comprehensively
and serves as one of the inputs for us when making investment decisions. The survey framework includes a structured questionnaire, and the feedback is collected through a web
survey hosted by an independent organization.
Business Responsibility and Sustainability Report
Infosys Integrated Annual Report 2023-24
203
The Board of Directors
Infosys Limited, Bengaluru
Dear members of the Board,
We, Salil Parekh, Chief Executive Officer and Managing Director, and Jayesh Sanghrajka, 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, 2024, 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, 2024.
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.
Sd/-
Sd/-
Bengaluru
April 18, 2024
Salil Parekh
Chief Executive Officer and Managing Director
Jayesh Sanghrajka
Chief Financial Officer
DIN: 01876159
CEO and CFO certification
Statutory reports
Index
A Independent Auditor’s Report .................................................................................................................................................................................................205
B Balance Sheet..................................................................................................................................................................................................................................217
C Statement of Profit and Loss......................................................................................................................................................................................................219
D Statement of Changes in Equity...............................................................................................................................................................................................221
E Statement of Cash Flows.............................................................................................................................................................................................................227
F Overview and Notes to the Standalone Financial Statements......................................................................................................................................229
1. Overview
1.1 Company overview.................................................................................................................................................................................................................229
1.2 Basis of preparation of financial statements................................................................................................................................................................229
1.3 Use of estimates and judgments......................................................................................................................................................................................229
1.4 Critical accounting estimates and judgments.............................................................................................................................................................229
2. Notes to the Standalone financial statements
2.1 Property, plant and equipment.........................................................................................................................................................................................230
2.2 Goodwill and other intangible assets.............................................................................................................................................................................233
2.3 Leases .........................................................................................................................................................................................................................................234
2.4 Capital work-in-progress ....................................................................................................................................................................................................236
2.5 Investments..............................................................................................................................................................................................................................237
2.6 Loans...........................................................................................................................................................................................................................................242
2.7 Other financial assets............................................................................................................................................................................................................243
2.8 Trade receivables....................................................................................................................................................................................................................243
2.9 Cash and cash equivalents..................................................................................................................................................................................................244
2.10 Other assets.............................................................................................................................................................................................................................244
2.11 Financial instruments ..........................................................................................................................................................................................................244
2.12 Equity..........................................................................................................................................................................................................................................253
2.13 Other financial liabilities.....................................................................................................................................................................................................259
2.14 Trade payables........................................................................................................................................................................................................................259
2.15 Other liabilities........................................................................................................................................................................................................................260
2.16 Provisions..................................................................................................................................................................................................................................261
2.17 Income taxes............................................................................................................................................................................................................................261
2.18 Revenue from operations...................................................................................................................................................................................................264
2.19 Other income, net..................................................................................................................................................................................................................267
2.20 Expenses...................................................................................................................................................................................................................................267
2.21 Employee benefits................................................................................................................................................................................................................268
2.22 Reconciliation of basic and diluted shares used in computing earnings per equity share.......................................................................273
2.23 Contingent liabilities and commitments......................................................................................................................................................................274
2.24 Related party transactions.................................................................................................................................................................................................274
2.25 Corporate Social Responsibility (CSR)...........................................................................................................................................................................284
2.26 Segment reporting...............................................................................................................................................................................................................285
2.27 Ratios..........................................................................................................................................................................................................................................285
2.28 Function-wise classification of Statement of Profit and Loss...............................................................................................................................286
Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2024
Infosys Integrated Annual Report 2023-24
205
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, 2024, 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 notes to the financial statements, including a summary of
material 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, (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2024 and its profit, total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (“SA”s) specified under
Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit
of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained
by us is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial
Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be communicated in our report.
Infosys Integrated Annual Report 2023-24
206
Standalone Financial Statements
Sr. No.
Key Audit Matter
1
Revenue recognition
The Company’s contracts with customers include contracts with multiple products and services. The Company derives
revenues from IT services comprising software development and related services, maintenance, consulting and package
implementation, licensing of software products and platforms across the Company’s core and digital offerings and business
process management services. The Company assesses the services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of
the customer to benefit independently from such deliverables involves significant judgment.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party vendor
equipment or software. In these types of arrangements, revenue from sales of third-party vendor products or services is
recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when
the Company is the principal for the transaction. In doing so, the Company first evaluates whether it obtains control of the
specified goods or service before it is transferred to the customer. The Company considers whether it is primarily responsible
for fulfilling the promise to provide the specified goods or service, 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 to Notes 1.4 and 2.18 to the Standalone Financial Statements.
Auditor’s Response
Principal Audit Procedures Performed included the following:
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.
Infosys Integrated Annual Report 2023-24
207
Sr. No.
Key Audit Matter
2
Revenue recognition – Fixed-price contracts using the percentage-of-completion method
Fixed-price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed through
an indefinite number of repetitive acts over a specified period or (2) using a percentage-of-completion method when the
pattern of benefits from services rendered to the customer and the Company’s costs to fulfil the contract is not even through
the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-
of-completion method.
Use of the percentage-of-completion method requires the Company to determine the actual efforts or costs expended
to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to
measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total
efforts or costs involves significant judgment and is assessed throughout the period of the contract to reflect any changes
based on the latest available information. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the
period in which such losses become probable based on the estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed-price contracts measured using the percentage-
of-completion method as a key audit matter as the estimation of total efforts or costs involves significant judgment and
is assessed throughout the period of the contract to reflect any changes based on the latest available information. This
estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs incurred
to-date and estimates of efforts or costs required to complete the remaining contract performance obligations over the
term of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort to
evaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer to Notes 1.4 and 2.18 to the Standalone Financial Statements.
Auditor’s Response
Principal Audit Procedures Performed included the following:
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts included the
following, among others:
•
We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application controls
pertaining to time recording, allocation and budgeting systems, which prevents unauthorised changes to recording of
efforts incurred.
•
We selected a sample of fixed-price contracts with customers measured using the percentage-of-completion method and
performed the following:
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Company’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.
Infosys Integrated Annual Report 2023-24
208
Standalone Financial Statements
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 accounting principles generally
accepted in India, including Ind AS specified under Section 133 of the Act. 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 and Board of Directors 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 Company’s 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.
Infosys Integrated Annual Report 2023-24
209
•
Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and
whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal financial controls 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)
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c)
The Balance Sheet, the Statement of Profit and Loss, including Other Comprehensive Income, Statement of Changes in Equity
and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d)
In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act.
e)
On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2024 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.
The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial
Statements. Refer to Note 2.23 to the Standalone Financial Statements.
ii.
The Company has made provision as required under applicable law or accounting standards for material foreseeable
losses. Refer to 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.
Infosys Integrated Annual Report 2023-24
210
Standalone Financial Statements
iv.
(a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(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.
Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its
books of account for the financial year ended March 31, 2024, which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the softwares. Further, during the
course of our audit we did not come across any instance of the audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for
record retention is not applicable for the financial year ended March 31, 2024.
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 Registration No. 117366W/W-100018)
Place: Bengaluru
Date: April 18, 2024
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 24039826BKCODM8655
Infosys Integrated Annual Report 2023-24
211
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 Financial 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, 2024 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 judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls 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
Infosys Integrated Annual Report 2023-24
212
Standalone Financial Statements
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.
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, 2024, 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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
Place: Bengaluru
Date: April 18, 2024
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 24039826BKCODM8655
Infosys Integrated Annual Report 2023-24
213
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, 2024 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 not provided any loans or advances in the nature of loan or stood guarantee or provided security to any
other entity during the year. Hence reporting under clause 3(iii)(a) of the Order is not applicable.
(b)
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.
(c)
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 regular as per stipulation.
(d)
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.
iv.
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.
v.
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.
Infosys Integrated Annual Report 2023-24
214
Standalone Financial Statements
vi.
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, 2024 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, 2024 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) (5)
AY (1) 2010-11,
AY (1) 2020-21 to
AY (1) 2022-23
3,175
Income Tax
Assessing Officer
AY (1) 2008-09 to
AY (1) 2011-12,
AY (1) 2013-14 to
AY (1) 2016-17,
AY (1) 2018-19 to
AY (1) 2024-25
4,168
The Finance Act, 2016
Equalisation Levy
Assessing Officer
AY (1) 2021-22
- (4)
Customs Act, 1962
Duty of Custom
Specified Officer of Special Economic
Zone
FY (1) 2008-09 to
FY (1) 2011-12
5
Central Excise Act, 1944
Duty of Excise
Supreme Court (3)
FY (1) 2005-06 to
FY (1) 2015-16
68
Customs Excise and Service Tax
Appellate Tribunal
FY (1) 2015-16
- (4)
Goods and Service Tax Act,
2017
Goods and Service
Tax
Joint Commissioner (Appeals)
FY (1) 2017-18 to
2019-20,
FY (1) 2021-22
2
High Court of Karnataka
FY (1) 2017-18
2
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
21
Sales Tax
High Court of Andhra Pradesh
FY (1) 2007-08
- (4)
Finance Act, 1994
Service Tax
Customs Excise and Service Tax
Appellate Tribunal (2)
FY (1) 2004-05 to
FY (1) 2017-18
317
Central Sales Tax Act, 1956
Central Sales Tax
Joint Commissioner (Appeals)
FY (1) 2016-17
-(4)
The Karnataka [Gram
Swaraj and Panchayat Raj]
Act, 1993
Panchayat Property
Tax
High Court of Karnataka at Bengaluru
FY (1) 2017-18 to
FY (1) 2020-21
32
Greater Hyderabad
Municipal Corporation Act,
1955
Trade Licence Fee
Ministry for Information Technology
& Municipal Administration & Urban
Development
FY (1) 2021-22 to
FY (1) 2022-23
3
Excise Tax Act, 2002
Goods and Services
Tax / Harmonized
Sales Tax
Canada Revenue Agency
FY (1) 2018-19,
FY (1) 2019-20
11
Infosys Integrated Annual Report 2023-24
215
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
209
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.
(5) Stay order has been granted for AY 2020-21 and AY 2021-22 against ₹2,740 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)
The Company has not raised any loans during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable.
x.
(a)
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.
xii.
The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
xiii.
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.
xiv.
(a)
In our opinion, the Company has an adequate internal audit system commensurate with the size and the
nature of its business.
(b)
We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date,
in determining the nature, timing and extent of our audit procedures.
xv.
In our opinion, during the year the Company has not entered into any non-cash transactions with its Directors or persons
connected with its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi.
(a)
In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.
(b)
In our opinion, there is no core investment Company within the Group (as defined in the Core Investment Companies
(Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii.
The Company has not incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.
Infosys Integrated Annual Report 2023-24
216
Standalone Financial Statements
xviii.
There has been no resignation of the statutory auditors of the Company during the year.
xix.
On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and
Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that
Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of
the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
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 Registration No. 117366W/W-100018)
Place: Bengaluru
Date: April 18, 2024
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 24039826BKCODM8655
Infosys Integrated Annual Report 2023-24
217
Balance Sheet
(In ₹ crore)
Particulars
Note
As at March 31,
2024
2023
Assets
Non-current assets
Property, plant and equipment
2.1
10,813
11,656
Right-of-use assets
2.3
3,303
3,561
Capital work-in-progress
2.4
277
275
Goodwill
2.2
211
211
Other intangible assets
–
3
Financial assets
Investments
2.5
23,352
23,686
Loans
2.6
34
39
Other financial assets
2.7
1,756
1,341
Deferred tax assets (net)
2.17
–
779
Income tax assets (net)
2.17
2,583
5,916
Other non-current assets
2.10
1,669
1,788
Total non-current assets
43,998
49,255
Current assets
Financial assets
Investments
2.5
11,307
4,476
Trade receivables
2.8
25,152
20,773
Cash and cash equivalents
2.9
8,191
6,534
Loans
2.6
208
291
Other financial assets
2.7
10,129
9,088
Income tax assets (net)
2.17
6,329
–
Other current assets
2.10
9,636
10,920
Total current assets
70,952
52,082
Total assets
1,14,950
1,01,337
Infosys Integrated Annual Report 2023-24
218
Standalone Financial Statements
Particulars
Note
As at March 31,
2024
2023
Equity and liabilities
Equity
Equity share capital
2.12
2,075
2,074
Other equity
79,101
65,671
Total equity
81,176
67,745
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities
2.3
3,088
3,553
Other financial liabilities
2.13
1,941
1,317
Deferred tax liabilities (net)
2.17
1,509
866
Other non-current liabilities
2.15
150
414
Total non-current liabilities
6,688
6,150
Current liabilities
Financial liabilities
Lease liabilities
2.3
678
713
Trade payables
2.14
Total outstanding dues of micro enterprises and small
enterprises
92
97
Total outstanding dues of creditors other than micro
enterprises and small enterprises
2,401
2,329
Other financial liabilities
2.13
11,808
12,697
Other current liabilities
2.15
7,681
7,609
Provisions
2.16
1,464
1,163
Income tax liabilities (net)
2,962
2,834
Total current liabilities
27,086
27,442
Total equity and liabilities
1,14,950
1,01,337
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No:
117366W/ W-100018
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Balance Sheet (contd.)
Infosys Integrated Annual Report 2023-24
219
Statement of Profit and Loss
(In ₹ crore, except equity share and per equity share data)
Particulars
Note
Year ended March 31,
2024
2023
Revenue from operations
2.18
1,28,933
1,24,014
Other income, net
2.19
7,417
3,859
Total income
1,36,350
1,27,873
Expenses
Employee benefit expenses
2.20
65,139
62,764
Cost of technical sub-contractors
18,638
19,096
Travel expenses
1,372
1,227
Cost of software packages and others
2.20
6,891
5,214
Communication expenses
489
502
Consultancy and professional charges
1,059
1,236
Depreciation and amortization expenses
2.1, 2.2.2 and 2.3
2,944
2,753
Finance cost
277
157
Other expenses
2.20
3,588
3,281
Total expenses
1,00,397
96,230
Profit before tax
35,953
31,643
Tax expense:
Current tax
2.17
7,306
8,167
Deferred tax
2.17
1,413
208
Profit for the year
27,234
23,268
Infosys Integrated Annual Report 2023-24
220
Standalone Financial Statements
Particulars
Note
Year ended March 31,
2024
2023
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
2.17 and 2.21
128
(19)
Equity instruments through other comprehensive income, net
2.5 and 2.17
19
(6)
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
11
(7)
Fair value changes on investments, net
2.5 and 2.17
129
(236)
Total other comprehensive income / (loss), net of tax
287
(268)
Total comprehensive income for the year
27,521
23,000
Earnings per equity share
Equity shares of par value ₹5 each
Basic (in ₹ per share)
65.62
55.48
Diluted (in ₹ per share)
65.56
55.42
Weighted average equity shares used in computing earnings per equity share
Basic (in shares)
2.22
415,00,99,796
419,38,13,881
Diluted (in shares)
2.22
415,39,94,624
419,82,34,378
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No:
117366W/ W-100018
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Statement of Profit and Loss (contd.)
Infosys Integrated Annual Report 2023-24
221
(In ₹ crore)
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders of
the Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Balance as at
April 1, 2022
2,103
54
2,844
139
172
55,449
9
606
7,926
266
2
(264)
69,306
Impact on adoption
of amendment to
Ind AS 37#
–
–
–
–
–
(9)
–
–
–
–
–
–
(9)
2,103
54
2,844
139
172
55,440
9
606
7,926
266
2
(264)
69,297
Changes in equity
for the year ended
March 31, 2023
Profit for the year
–
–
–
–
–
23,268
–
–
–
–
–
–
23,268
Remeasurement
of the net defined
benefit liability /
asset, net*
–
–
–
–
–
–
–
–
–
–
–
(19)
(19)
Equity instruments
through other
comprehensive
income, net* (Refer
to Notes 2.5 and
2.17)
–
–
–
–
–
–
–
–
–
(6)
–
–
(6)
Fair value changes
on derivatives
designated as
cash flow hedge,
net*(Refer to Notes
2.11)
–
–
–
–
–
–
–
–
–
–
(7)
–
(7)
Fair value changes
on investments,
net* (Refer to Note
2.5 and 2.17)
–
–
–
–
–
–
–
–
–
–
–
(236)
(236)
Total
comprehensive
income for the
year
–
–
–
–
–
23,268
–
–
–
(6)
(7)
(255)
23,000
Statement of Changes in Equity
Infosys Integrated Annual Report 2023-24
222
Standalone Financial Statements
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders of
the Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Buyback of equity
shares** (Refer to
Note 2.12)
(30)
–
–
–
(340)
(11,096)
–
–
–
–
–
–
(11,466)
Transaction cost
relating to buyback*
–
–
–
–
(19)
(5)
–
–
–
–
–
–
(24)
Amount transferred
to capital
redemption reserve
upon buyback
–
–
–
30
–
(21)
(9)
–
–
–
–
–
–
Transferred to
Special Economic
Zone Re-
investment reserve
–
–
–
–
–
(3,125)
–
–
3,125
–
–
–
–
Transferred from
Special Economic
Zone Re-
investment reserve
on utilization
–
–
–
–
–
1,397
–
–
(1,397)
–
–
–
–
Transferred on
account of exercise
of stock options
(Refer to Note 2.12)
–
–
–
–
291
–
–
(291)
–
–
–
–
–
Transferred on
account of options
not exercised
–
–
–
–
–
–
2
(2)
–
–
–
–
–
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
1
–
–
–
29
–
–
–
–
–
–
–
30
Employee stock
compensation
expense (Refer to
Note 2.12)
–
–
–
–
–
–
–
514
–
–
–
–
514
Income tax benefit
arising on exercise
of stock options
–
–
–
–
–
–
–
51
–
–
–
–
51
Infosys Integrated Annual Report 2023-24
223
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders of
the Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Reserves on
common control
transaction (Refer to
Note 2.5.1)
–
–
18
–
–
–
–
–
–
–
–
–
18
Dividends
–
–
–
–
–
(13,675)
–
–
–
–
–
–
(13,675)
Balance as at
March 31, 2023
2,074
54
2,862
169
133
52,183
2
878
9,654
260
(5)
(519)
67,745
Infosys Integrated Annual Report 2023-24
224
Standalone Financial Statements
(In ₹ crore)
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders
of the
Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Balance as at
April 1, 2023
2,074
54
2,862
169
133
52,183
2
878
9,654
260
(5)
(519)
67,745
Changes in
equity for the
year ended
March 31, 2024
Profit for the
year
–
–
–
–
–
27,234
–
–
–
–
–
–
27,234
Remeasurement
of the net
defined benefit
liability / asset,
net*
–
–
–
–
–
–
–
–
–
–
–
128
128
Equity
instruments
through other
comprehensive
income, net*
(Refer to Notes
2.5 and 2.17)
–
–
–
–
–
–
–
–
–
19
–
–
19
Fair value
changes on
derivatives
designated
as cash
flow hedge,
net*(Refer to
Note 2.11)
–
–
–
–
–
–
–
–
–
–
11
–
11
Statement of Changes in Equity (contd.)
Infosys Integrated Annual Report 2023-24
225
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders
of the
Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Fair value
changes on
investments,
net* (Refer to
Notes 2.5 and
2.17)
–
–
–
–
–
–
–
–
–
–
–
129
129
Total
comprehensive
income for the
year
–
–
–
–
–
27,234
–
–
–
19
11
257
27,521
Transferred
to Special
Economic Zone
Re-investment
reserve
–
–
–
–
–
(2,957)
–
–
2,957
–
–
–
–
Transferred
from Special
Economic Zone
Re-investment
reserve on
utilization
–
–
–
–
–
824
–
–
(824)
–
–
–
–
Transferred
on account of
exercise of stock
options (Refer to
Note 2.12)
–
–
–
–
447
–
–
(447)
–
–
–
–
–
Transferred
on account of
options not
exercised
–
–
–
–
–
–
160
(160)
–
–
–
–
–
Shares issued
on exercise of
employee stock
options (Refer to
Note 2.12)
1
–
–
–
–
–
–
–
–
–
–
–
1
Employee stock
compensation
expense (Refer
to Note 2.12)
–
–
–
–
–
–
–
639
–
–
–
–
639
Infosys Integrated Annual Report 2023-24
226
Standalone Financial Statements
Particulars
Equity
share
capital
Other equity
Total equity
attributable
to equity
holders
of the
Company
Reserves and surplus
Other comprehensive income
Capital reserve
Capital
redemption
reserve
Securities
premium
Retained
earnings
General
reserve
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)
Capital
reserve
Other
reserves (2)
Income tax
benefit arising
on exercise of
stock options
–
–
–
–
–
–
–
3
–
–
–
–
3
Dividends
–
–
–
–
–
(14,733)
–
–
–
–
–
–
(14,733)
Balance as at
March 31, 2024
2,075
54
2,862
169
580
62,551
162
913
11,787
279
6
(262)
81,176
* net of tax
** Including tax on buyback of ₹2,166 crore for the year ended March 31, 2023.
# Impact on account of adoption of amendment to Ind AS 37, Provisions, Contingent Liabilities and Contingents Assets
(1) The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income-tax Act, 1961. The reserve should be utilized by
the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income-tax Act, 1961.
(2) Profit / loss on transfer of business between entities under common control taken to reserve.
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No:
117366W/ W-100018
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Infosys Integrated Annual Report 2023-24
227
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.
(In ₹ crore)
Particulars
Note
Year ended March 31,
2024
2023
Cash flow from operating activities:
Profit for the year
27,234
23,268
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization
2.1, 2.2.2 and 2.3
2,944
2,753
Income tax expense
2.17
8,719
8,375
Impairment loss recognized / (reversed) under expected credit loss model
130
183
Finance cost
277
157
Interest and dividend income
2.19
(4,670)
(3,028)
Stock compensation expense
2.12
575
460
Provision for post sale client support
77
121
Exchange differences on translation of assets and liabilities, net
63
(116)
Interest receivable on income tax refund
(1,934)
–
Other adjustments
235
34
Changes in assets and liabilities
Trade receivables and unbilled revenue
(2,933)
(5,065)
Loans, other financial assets and other assets
(1,645)
(2,171)
Trade payables
2.14
67
(243)
Other financial liabilities, other liabilities and provisions
(117)
2,248
Cash generated from operations
29,022
26,976
Income taxes paid
(8,235)
(7,807)
Net cash generated by operating activities
20,787
19,169
Cash flow from investing activities:
Expenditure on property, plant and equipment
(1,832)
(2,130)
Deposits placed with corporation
(688)
(634)
Redemption of deposits placed with corporation
522
482
Interest and dividend received
1,441
1,299
Dividend received from subsidiary
2,976
1,463
Loan given to subsidiaries
–
(427)
Loan repaid by subsidiaries
4
393
Investment in subsidiaries
(63)
(1,530)
Receipt / (payment) towards business transfer for entities under common control
35
19
Receipt / (payment) from entities under liquidation
80
–
Escrow and other deposits pertaining to buyback
–
(483)
Redemption of escrow and other deposits pertaining to buyback
–
483
Other receipts
123
61
Infosys Integrated Annual Report 2023-24
228
Standalone Financial Statements
Particulars
Note
Year ended March 31,
2024
2023
Payments to acquire investments
Liquid mutual fund units
(57,606)
(62,952)
Target maturity fund units
–
(400)
Tax-free bonds and government bonds
–
(14)
Commercial papers
(9,405)
(2,485)
Certificates of deposit
(7,011)
(8,909)
Government securities
–
(1,370)
Non-convertible debentures
(1,526)
–
Others
(2)
(4)
Proceeds on sale of investments
Tax-free bonds and government bonds
150
213
Liquid mutual fund units
56,124
64,168
Non-convertible debentures
955
395
Certificates of deposit
6,962
9,454
Commercial papers
5,475
2,098
Government securities
5
1,532
Others
20
99
Net cash (used in) / generated from investing activities
(3,261)
821
Cash flow from financing activities:
Buyback of equity shares, including transaction costs and tax on buyback
–
(11,499)
Payment of lease liabilities
2.3
(850)
(694)
Shares issued on exercise of employee stock options
1
30
Other receipts
–
44
Other payments
(243)
(64)
Payment of dividends
(14,733)
(13,674)
Net cash used in financing activities
(15,825)
(25,857)
Net increase / (decrease) in cash and cash equivalents
1,701
(5,867)
Effect of exchange differences on translation of foreign currency cash and cash equivalents
(44)
131
Cash and cash equivalents at the beginning of the year
2.9
6,534
12,270
Cash and cash equivalents at the end of the year
2.9
8,191
6,534
Supplementary information:
Restricted cash balance
2.9
44
46
The accompanying notes form an integral part of the Standalone financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No:
117366W/ W-100018
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Infosys Integrated Annual Report 2023-24
229
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 18, 2024.
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. The material accounting
policy information used in preparation of the audited Standalone
financial statements have been discussed in the respective notes.
As the year to date 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 to date
figures reported in this statement.
1.3 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 involving complex and
subjective judgments and the use of assumptions in these
financial statements have been disclosed in Note no. 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 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 Standalone
financial statements.
1.4 Critical accounting estimates and judgments
a. Revenue recognition
The Company’s contracts with customers include promises to
transfer multiple products and services to a customer. Revenues
from customer contracts are considered for recognition and
measurement when the contract has been approved, in writing,
by the parties to the contract, the parties to contract are
committed to perform their respective obligations under the
contract, and the contract is legally enforceable. The Company
assesses the services promised in a contract and identifies
distinct performance obligations in the contract. Identification of
distinct performance obligations to determine the deliverables
and the ability of the customer to benefit independently from
such deliverables, and allocation of transaction price to these
distinct performance obligations involves significant judgment.
Fixed-price maintenance revenue is recognized ratably on a
straight-line basis when services are performed through an
indefinite number of repetitive acts over a specified period.
Revenue from fixed-price maintenance contract is recognized
ratably using a percentage-of-completion method when the
pattern of benefits from the services rendered to the customer
and Company’s costs to fulfil the contract is not even through the
period of the contract because the services are generally discrete
in nature and not repetitive. The use of method to recognize the
maintenance revenues requires judgment and is based on the
promises in the contract and nature of the deliverables.
The Company uses the percentage-of-completion method
in accounting for other fixed-price contracts. Use of the
percentage-of-completion method requires the Company to
determine the actual efforts or costs expended to date as a
proportion of the estimated total efforts or costs to be incurred.
Efforts or costs expended have been used to measure progress
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 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 obtains control of the specified goods
Infosys Integrated Annual Report 2023-24
230
Standalone Financial Statements
or services before they are transferred to the customer. The
Company considers whether it is primarily responsible for
fulfilling the promise to provide the specified goods or services,
inventory risk, pricing discretion and other factors to determine
whether it controls the specified goods or services 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, 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 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.
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 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:
Building(1)
22-25 years
Plant and machinery(1)
5 years
Office equipment
5 years
Computer equipment(1)
3-5 years
Furniture and fixtures(1)
5 years
Vehicles(1)
5 years
Leasehold improvements
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 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.
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 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.
Infosys Integrated Annual Report 2023-24
231
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2024 are as follows:
(In ₹ crore)
Particulars
Land –
Freehold
Buildings (1)(2)
Plant and
machinery (2)
Office
equipment (2)
Computer
equipment (2)
Furniture
and
fixtures (2)
Leasehold
improvements
Vehicles
Total
Gross carrying
value as at
April 1, 2023
1,429
10,445
3,144
1,314
7,235
2,129
968
45
26,709
Additions
1
289
119
90
765
100
70
1
1,435
Additions through
business transfer
(Refer to Note 2.5)
–
–
–
2
12
8
12
–
34
Deletions*
–
(55)
(49)
(36)
(633)
(77)
(87)
(1)
(938)
Gross carrying
value as at March
31, 2024
1,430
10,679
3,214
1,370
7,379
2,160
963
45
27,240
Accumulated
depreciation as at
April 1, 2023
–
(4,223)
(2,558)
(1,060)
(4,977)
(1,549)
(646)
(40)
(15,053)
Depreciation
–
(407)
(223)
(114)
(1,144)
(230)
(171)
(3)
(2,292)
Accumulated
depreciation on
deletions*
–
55
49
35
624
70
84
1
918
Accumulated
depreciation as at
March 31, 2024
–
(4,575)
(2,732)
(1,139)
(5,497)
(1,709)
(733)
(42)
(16,427)
Carrying value as at
April 1, 2023
1,429
6,222
586
254
2,258
580
322
5
11,656
Carrying value as at
March 31, 2024
1,430
6,104
482
231
1,882
451
230
3
10,813
* During the year ended March 31, 2024, certain assets, which were not in use having gross book value of ₹646 crore (net book value: Nil) were retired.
Infosys Integrated Annual Report 2023-24
232
Standalone Financial Statements
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2023 were as follows:
(In ₹ crore)
Particulars
Land –
Freehold
Buildings (1)(2)
Plant and
machinery (2)
Office
equipment (2)
Computer
equipment (2)
Furniture
and
fixtures (2)
Leasehold
improvements
Vehicles
Total
Gross carrying
value as at
April 1, 2022
1,429
10,115
3,054
1,250
7,239
2,070
817
44
26,018
Additions
2
330
264
106
1,267
341
165
2
2,477
Deletions*
(2)
–
(174)
(42)
(1,271)
(282)
(14)
(1)
(1,786)
Gross carrying
value as at
March 31, 2023
1,429
10,445
3,144
1,314
7,235
2,129
968
45
26,709
Accumulated
depreciation as at
April 1, 2022
–
(3,834)
(2,494)
(993)
(5,163)
(1,614)
(499)
(37)
(14,634)
Depreciation
–
(389)
(238)
(109)
(1,080)
(216)
(157)
(4)
(2,193)
Accumulated
depreciation on
deletions*
–
–
174
42
1,266
281
10
1
1,774
Accumulated
depreciation as at
March 31, 2023
–
(4,223)
(2,558)
(1,060)
(4,977)
(1,549)
(646)
(40)
(15,053)
Carrying value as at
April 1, 2022
1,429
6,281
560
257
2,076
456
318
7
11,384
Carrying value as at
March 31, 2023
1,429
6,222
586
254
2,258
580
322
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.
(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.
Repairs and maintenance costs are recognized in the Statement
of Profit and Loss when incurred.
Tangible assets provided on operating lease to subsidiaries as at
March 31, 2024 and March 31, 2023 are as follows:
(In ₹ crore)
Particulars
Cost
Accumulated
depreciation
Net book
value
Land
32
–
32
32
–
32
Buildings
333
138
195
333
132
201
Plant and machinery
36
34
2
28
28
–
Particulars
Cost
Accumulated
depreciation
Net book
value
Furniture and fixtures
29
25
4
19
18
1
Computer equipment
2
2
–
–
–
–
Leasehold improvement
40
24
16
–
–
–
Office equipment
23
20
3
16
16
–
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Aggregate depreciation charged
on above assets
26
13
The rental income from subsidiary in current year is ₹78 crore and
in last year it was ₹53 crore.
Infosys Integrated Annual Report 2023-24
233
2.2 Goodwill and other intangible assets
2.2.1 Goodwill
The summary of changes in the carrying amount of goodwill is as
follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Carrying value at the beginning
211
211
Carrying value at the end
211
211
The allocation of goodwill to operating segments as at
March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Segment
As at March 31,
2024
2023
Financial services
64
64
Retail
34
34
Communication
28
28
Energy, Utilities, Resources and
Services
27
27
Manufacturing
21
21
174
174
Operating segments without
significant goodwill
37
37
Total
211
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, future economic benefits are probable, the Company has an intention and ability
to complete and use or sell the software and the costs can be measured reliably. The costs, which can be capitalized include the cost of
material, direct labor, overhead costs that are directly attributable to prepare the asset for its intended use.
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2024 are as follows:
(In ₹ crore)
Particulars
Customer-
related
Software-
related
Trade name-
related
Others
Total
Gross carrying value as at April 1, 2023
113
54
26
26
219
Deletions
–
–
–
–
–
Gross carrying value as at March 31, 2024
113
54
26
26
219
Accumulated amortization as at April 1, 2023
(113)
(51)
(26)
(26)
(216)
Amortization expense
–
(3)
–
–
(3)
Accumulated amortization on deletions
–
–
–
–
–
Accumulated amortization as at March 31, 2024
(113)
(54)
(26)
(26)
(219)
Carrying value as at March 31, 2024
–
–
–
–
–
Carrying value as at April 1, 2023
–
3
–
–
3
Estimated useful life (in years)
7
2
5
5
Estimated remaining useful life (in years)
–
–
–
–
Infosys Integrated Annual Report 2023-24
234
Standalone Financial Statements
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2023 were as follows:
(In ₹ crore)
Particulars
Customer-
related
Software-
related
Trade name-
related
Others
Total
Gross carrying value as at April 1, 2022
113
54
26
26
219
Deletions
–
–
–
–
–
Gross carrying value as at March 31, 2023
113
54
26
26
219
Accumulated amortization as at April 1, 2022
(104)
(31)
(26)
(26)
(187)
Amortization expense
(9)
(20)
–
–
(29)
Accumulated amortization on deletions
–
–
–
–
–
Accumulated amortization as at March 31, 2023
(113)
(51)
(26)
(26)
(216)
Carrying value as at March 31, 2023
–
3
–
–
3
Carrying value as at April 1, 2022
9
23
–
–
32
Estimated useful life (in years)
7
2
5
5
Estimated remaining useful life (in years)
–
–
–
–
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 year ended March 31, 2024
and March 31, 2023 is ₹695 crore and ₹639 crore, respectively.
2.3 Leases
Accounting policy
The Company as a lessee
The Company’s lease asset classes primarily consist of leases for
land, buildings and computers. The Company assesses whether
a contract contains a lease, at 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 include 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.
Infosys Integrated Annual Report 2023-24
235
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 if whether it
will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in
the Balance Sheet and lease payments have been classified as
financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance
or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are
classified as operating leases.
When the Company is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately. The
sublease is classified as a finance or operating lease by reference
to the 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, 2024 are as follows:
(In ₹ crore)
Particulars
Category of ROU asset
Total
Land
Buildings
Computers
Balance as at April 1, 2023
548
2,669
344
3,561
Additions*
–
336
420
756
Deletions
(10)
(169)
(92)
(271)
Impairment#
–
(88)
–
(88)
Depreciation
(4)
(482)
(169)
(655)
Balance as at March 31, 2024
534
2,266
503
3,303
* Net of adjustments on account of modifications and lease incentives
# Included under other expenses. Refer to Note 2.20.
The changes in the carrying value of right-of-use assets for the year ended March 31, 2023 were as follows:
(In ₹ crore)
Particulars
Category of ROU asset
Total
Land
Buildings
Computers
Balance as at April 1, 2022
552
2,621
138
3,311
Additions*
–
510
371
881
Deletions
–
(21)
(61)
(82)
Depreciation
(4)
(441)
(104)
(549)
Balance as at March 31, 2023
548
2,669
344
3,561
* 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.
Infosys Integrated Annual Report 2023-24
236
Standalone Financial Statements
The break-up of current and non-current lease liabilities as at
March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Current lease liabilities
678
713
Non-current lease liabilities
3,088
3,553
Total
3,766
4,266
The movement in lease liabilities during the year ended
March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Balance at the beginning
4,266
3,786
Additions
590
883
Finance cost accrued during the
period
166
151
Deletions
(413)
(26)
Payment of lease liabilities
(852)
(706)
Translation difference
9
178
Balance at the end
3,766
4,266
The details regarding the contractual maturities of lease liabilities
as at March 31, 2024 and March 31, 2023 on an undiscounted
basis are as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Less than one year
803
821
One to five years
2,735
2,547
More than five years
819
1,546
Total
4,357
4,914
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 ₹16 crore and
₹22 crore for the year ended March 31, 2024 and March 31, 2023.
The movement in the net investment in sublease in
ROU asset during the year ended March 31, 2024 and
March 31, 2023 is as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Balance at the beginning
346
365
Interest income accrued during
the period
–
13
Deletions
(346)
–
Lease receipts
–
(61)
Translation difference
–
29
Balance at the end
–
346
Leases not yet commenced to which Company is committed is
₹20 crore for a lease term up to seven years.
2.4 Capital work-in-progress (CWIP)
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Capital work-in-progress
277
275
Total capital work-in-progress
277
275
The capital work-in-progress ageing schedule for the year ended
March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Amount in CWIP for a period of
Total
Less
than 1
year
1-2
years
2-3
years
More
than 3
years
Projects in
progress
243
22
1
11
277
222
21
12
20
275
Total capital
work-in-progress
243
22
1
11
277
222
21
12
20
275
Infosys Integrated Annual Report 2023-24
237
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, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
To be completed in
Total
Less than 1
year
1-2 years
2-3 years More than 3
years
Projects in progress
KL-SP-SDB1
–
–
–
–
–
114
–
–
–
114
BN-SP-MET
–
–
–
–
–
20
–
–
–
20
Total capital work-in-progress
–
–
–
–
–
134
–
–
–
134
2.5 Investments
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current investments
Equity instruments of subsidiaries
9,150
9,078
Redeemable preference shares of subsidiary
2,831
2,831
Preference securities and equity securities
206
196
Target maturity fund units
431
402
Others
84
82
Tax-free bonds
1,731
1,742
Government bonds
14
14
Non-convertible debentures
2,216
2,490
Government securities
6,689
6,851
Total non-current investments
23,352
23,686
Current investments
Liquid mutual fund units
1,913
260
Commercial papers
4,507
420
Certificates of deposit
2,945
2,765
Tax-free bonds
–
150
Government securities
204
5
Non-convertible debentures
1,738
876
Total current investments
11,307
4,476
Total carrying value
34,659
28,162
Infosys Integrated Annual Report 2023-24
238
Standalone Financial Statements
(In ₹ crore, except as otherwise stated)
Particulars
As at March 31,
2024
2023
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited
662
662
33,828 (33,828) equity shares of 10,000 each, fully paid up
Infosys Technologies (China) Co. Limited
369
369
Infosys Technologies, S. de R.L. de C.V., Mexico
65
65
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB
76
76
1,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologies (Shanghai) Company Limited
1,010
1,010
Infosys Public Services, Inc.
99
99
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG
1,323
1,323
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.
–
1
Nil (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited
1,312
1,312
131,18,40,000 (131,18,40,000) equity shares of ₹10 each, fully paid up
Infosys Nova Holdings LLC#
2,637
2,637
Infosys Singapore Pte. Ltd
10
10
1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid
Brilliant Basics Holding Limited
59
59
1,346 (1,346) shares of GBP 0.005 each, fully paid up
Infosys Arabia Limited
2
2
70 (70) shares
Skava Systems Private Limited
–
59
Nil (25,000) shares of ₹10 each, fully paid up
Panaya Inc.
582
582
2 (2) shares of USD 0.01 per share, fully paid up
Infosys Chile SpA
7
7
100 (100) shares
WongDoody, Inc.
380
380
100 (100) shares
Infosys Luxembourg S.a r.l.
26
17
30,000 (20,000) shares
Infosys Austria GmbH
–
–
80,000 (80,000) shares of EUR 1 par value, fully paid up
Infosys Consulting Brazil
337
337
27,50,71,070 (27,50,71,070) shares of BRL 1 per share, fully paid up
Infosys Integrated Annual Report 2023-24
239
Particulars
As at March 31,
2024
2023
Infosys Consulting S.R.L. (Romania)
34
34
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Limited Bulgaria EOOD
2
2
4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH
2
2
25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Green Forum
1
1
10,00,000 (10,00,000) shares ₹10 per share, fully paid up
Infosys Automotive and Mobility GmbH
15
15
Infosys Turkey Bilgi Teknolojileri Limited Sirketi
48
7
15,08,060 (1,30,842) share Turkish Liras 100 (10,000) per share, fully paid up
Infosys Consulting S.R.L. (Argentina)
2
2
2,94,500 (2,94,500) shares AR$ 100 per share, fully paid up
Infosys Business Solutions LLC
8
8
10,000 (10,000) shares USD 100 per share, fully paid up
Danske IT and Support Services India Private Limited
82
–
3,27,788 (Nil) shared ₹10 per share fully paid up
Investments in Redeemable Preference shares of subsidiary
Infosys Singapore Pte. Ltd
2,831
2,831
45,62,00,000 (45,62,00,000) shares of SGD 1 per share, fully paid up
4,00,00,000 (4,00,00,000) shares of USD 1 per share, fully paid up
11,981
11,909
Investments carried at fair value through profit or loss
Target maturity fund units
431
402
Others (1)
84
82
515
484
Investments carried at fair value through other comprehensive income
Preference securities
91
193
Equity securities
2
3
93
196
Quoted
Investments carried at amortized cost
Tax-free bonds
1,731
1,742
Government bonds
14
14
1,745
1,756
Investments carried at fair value through other comprehensive income
Non-convertible debentures
2,216
2,490
Equity securities
113
–
Government securities
6,689
6,851
9,018
9,341
Total non-current investments
23,352
23,686
Infosys Integrated Annual Report 2023-24
240
Standalone Financial Statements
Particulars
As at March 31,
2024
2023
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units
1,913
260
1,913
260
Investments carried at fair value through other comprehensive income
Commercial papers
4,507
420
Certificates of deposit
2,945
2,765
7,452
3,185
Quoted
Investments carried at amortized cost
Tax-free bonds
–
150
–
150
Investments carried at fair value through other comprehensive income
Government securities
204
5
Non-convertible debentures
1,738
876
1,942
881
Total current investments
11,307
4,476
Total investments
34,659
28,162
Aggregate amount of quoted investments
12,705
12,128
Market value of quoted investments (including interest accrued), current
1,942
1,050
Market value of quoted investments (including interest accrued), non-current
10,978
11,336
Aggregate amount of unquoted investments
21,954
16,034
# Aggregate amount of impairment in value of investments
94
94
Reduction in the fair value of assets held for sale
854
854
Investments carried at cost
11,981
11,909
Investments carried at amortized cost
1,745
1,906
Investments carried at fair value through other comprehensive income
18,505
13,603
Investments carried at fair value through profit or loss
2,428
744
(1) Uncalled capital commitments outstanding as of March 31, 2024 and March 31, 2023 was ₹5 crore and ₹8 crore, respectively.
Refer to Note 2.11 for accounting policies on financial instruments.
Details of amounts recorded in other comprehensive income:
(In ₹ crore)
Particulars
Year ended
March 31, 2024
March 31, 2023
Gross
Tax
Net
Gross
Tax
Net
Net gain / (Loss) on
Non-convertible debentures
55
5
60
(92)
(1)
(93)
Government securities
89
(20)
69
(150)
8
(142)
Certificates of deposit
–
–
–
(1)
–
(1)
Equity and preference securities
10
9
19
(7)
1
(6)
Infosys Integrated Annual Report 2023-24
241
Method of fair valuation :
(In ₹ crore)
Class of investment
Method
Fair value as at March 31,
2024
2023
Liquid mutual fund units – carried at fair value
through profit or loss
Quoted price
1,913
260
Target maturity fund units – carried at fair value
through profit or loss
Quoted price
431
402
Tax-free bonds and government bonds – carried at
amortized cost
Quoted price and market observable inputs
1,959
2,134
Non-convertible debentures – carried at fair value
through other comprehensive income
Quoted price and market observable inputs
3,954
3,366
Government securities – carried at fair value through
other comprehensive income
Quoted price and market observable inputs
6,893
6,856
Commercial papers – carried at fair value through
other comprehensive income
Market observable inputs
4,507
420
Certificates of deposit – carried at fair value through
other comprehensive income
Market observable inputs
2,945
2,765
Quoted equity securities – carried at fair value through
other comprehensive income
Quoted price
113
–
Unquoted equity and preference securities – carried at
fair value through other comprehensive income
Discounted cash flows method, Market multiples
method, Option pricing model
93
196
Others – carried at fair value through profit or loss
Discounted cash flows method, Market multiples
method, Option pricing model
84
82
Total
22,892
16,481
Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments.
2.5.1 Business transfer – Danske IT and Support Services
India Private Limited
On June 26, 2023, the Board of Directors of Infosys authorized the
Company to execute a Business Transfer Agreement (“BTA”) with
Danske IT and Support Services India Private Limited (Danske IT) to
transfer the assets, liabilities and employees from Danske IT to the
Company. The Purchase consideration is based on the adjusted net
asset value as on the closing date i.e September 1, 2023. The details
of the assets and liabilities transferred and the consideration
receivable as below:
(In ₹ crore)
Particulars
Total
Property plant and equipment
34
Net liabilities
(72)
Net consideration
(38)
Proposed acquisition
On January 11, 2024, Infosys Limited entered into a definitive
agreement to acquire 100% of the equity share capital in InSemi
Technology Services Private Limited, a semiconductor design
services Company headquartered in India, for a consideration
including earn-outs, and management incentives and retention
bonuses totaling up to ₹280 crore (approximately $34 million) ,
subject to customary closing adjustments.
Infosys Integrated Annual Report 2023-24
242
Standalone Financial Statements
2.5.2 Details of investments
The details of investments in preference, equity and other instruments as at March 31, 2024 and March 31, 2023 are as follows:
(In ₹ crore, except as otherwise stated)
Particulars
As at March 31,
2024
2023
Preference securities
Airviz Inc.
–
–
2,89,695 (2,89,695) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop Inc
60
53
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
31
26
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value ₹1 each
Ideaforge Technology Limited
–
114
Nil (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
Nil (1,787) 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
2
2
15,000 (15,000) equity shares at ₹1,000 each, fully paid up, par value ₹1,000 each
Ideaforge Technology Limited
113
1
16,47,314 (22,600) equity shares at ₹10, fully paid up
Others
Stellaris Venture Partners India
84
82
Total
290
278
2.6 Loans
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Loans considered good – Unsecured
Other loans
Loans to employees
34
39
34
39
Loans credit impaired – Unsecured
Other loans
Loans to employees
-
-
Less: Allowance for credit
impairment
-
-
-
-
Total non-current loans
34
39
Particulars
As at March 31,
2024
2023
Current
Loans considered good – Unsecured
Loans to subsidiaries
-
43
Other loans
Loans to employees
208
248
Total current loans
208
291
Total loans
242
330
Infosys Integrated Annual Report 2023-24
243
2.7 Other financial assets
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Security deposits (1)
205
226
Net investment in sublease of
right-of-use asset (1)
–
298
Unbilled revenues (1)(5)#
1,366
686
Others (1)**
185
131
Total non-current other financial
assets
1,756
1,341
Current
Security deposits (1)
25
6
Restricted deposits (1)*
2,282
2,116
Unbilled revenues (1)(5)#
4,993
5,166
Interest accrued but not due (1)
476
441
Foreign currency forward and
options contracts (2)(3)
81
79
Net investment in sublease of
right-of-use asset (1)
–
48
Others (1)(4) **
2,272
1,232
Total current other financial assets
10,129
9,088
Total other financial assets
11,885
10,429
(1) Financial assets carried at amortized
cost
11,804
10,350
(2) Financial assets carried at fair value
through other comprehensive income
23
32
(3) Financial assets carried at fair value
through profit or loss
58
47
Particulars
As at March 31,
2024
2023
(4) Includes dues from subsidiaries
2,052
1,051
(5) Includes dues from subsidiaries
153
290
*
Restricted deposits represent deposit with financial institutions to settle
employee related obligations as and when they arise during the normal
course of business.
** Primarily includes net investment in lease
#
Classified as financial asset as right to consideration is unconditional and
is due only after a passage of time
2.8 Trade receivables
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Current
Trade receivable considered good
– Unsecured (1)
25,575
21,202
Less: Allowance for expected credit
loss
423
429
Trade receivable considered good
– Unsecured
25,152
20,773
Trade receivable – credit impaired
– Unsecured
157
106
Less: Allowance for credit
impairment
157
106
Trade receivable – credit impaired
– Unsecured
–
–
Total trade receivables (2)
25,152
20,773
(1) Includes dues from subsidiaries
259
611
(2) Includes dues from companies
where directors are interested
–
–
The trade receivables ageing schedule for the year ended as on March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Not due
Outstanding for following periods from due date of
payment
Total
Less than
6 months
6 months
to 1 year
1-2 years
2-3 years More than
3 years
Undisputed trade receivables – considered good
18,724
6,175
219
394
62
1
25,575
15,579
5,542
4
66
4
7
21,202
Undisputed trade receivables – credit impaired
3
12
7
5
3
81
111
9
6
2
4
49
34
104
Disputed trade receivables – considered good
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Disputed trade receivables – credit impaired
–
1
21
22
1
1
46
–
–
–
–
2
–
2
18,727
6,188
247
421
66
83
25,732
15,588
5,548
6
70
55
41
21,308
Less: Allowance for credit loss
580
535
Total trade receivables
25,152
20,773
Infosys Integrated Annual Report 2023-24
244
Standalone Financial Statements
2.9 Cash and cash equivalents
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Balances with banks
In current and deposit accounts
8,191
4,864
Cash on hand
–
–
Others
Deposits with financial
institutions
–
1,670
Total cash and cash equivalents
8,191
6,534
Balances with banks in unpaid
dividend accounts
37
37
Deposit with more than 12 months
maturity
–
700
Cash and cash equivalents as at March 31, 2024 and
March 31, 2023 include restricted cash and bank balances of
₹44 crore and ₹46 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
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Capital advances
151
141
Advances other than capital advances
Others
Prepaid expenses
68
63
Defined benefit plan assets
9
9
Deferred contract cost
Cost of obtaining a contract(3)
88
139
Cost of fulfillment
640
601
Other receivables
–
–
Unbilled revenues(2)
58
167
Withholding taxes and others
655
668
Total non-current other assets
1,669
1,788
Current
Advances other than capital advances
Payment to vendors for supply of
goods
325
171
Others
Prepaid expenses (1)
1,886
1,705
Unbilled revenues(2)
4,397
6,365
Particulars
As at March 31,
2024
2023
Deferred contract cost
Cost of obtaining a contract (3)
154
400
Cost of fulfillment
266
109
Withholding taxes and others
2,593
2,047
Other receivables (1)
15
123
Total current other assets
9,636
10,920
Total other assets
11,305
12,708
(1) Includes dues from subsidiaries
155
198
(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 financing arrangements with a
third-party for these assets. As at March 31, 2024 and March 31, 2023, the
financial liability pertaining to such arrangements amounts to ₹58 crore
and ₹114 crore, respectively (Refer to Note 2.13).
Withholding taxes and others primarily consist of input tax credits
and Cenvat / VAT recoverable from Government of India.
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
Infosys Integrated Annual Report 2023-24
245
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 (FVTPL)
A financial asset, which is not classified in any of the above
categories are subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
using the effective interest method, except for contingent
consideration recognized in a business combination, which is
subsequently measured at fair value through profit or loss.
(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
forecast cash transactions.
When a derivative is designated as a cash flow hedge instrument,
the effective portion of changes in the fair value of the derivative
is recognized in other comprehensive income and accumulated
in the cash flow hedge reserve. Any ineffective portion of
changes in the fair value of the derivative is recognized
immediately in the net profit in the Statement of Profit and
Loss. If the hedging instrument no longer meets the criteria
for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold,
terminated or exercised, the cumulative gain or loss on the
hedging instrument recognized in cash flow hedge reserve till
the period the hedge was effective remains in cash flow hedge
reserve until the forecasted transaction occurs. The cumulative
gain or loss previously recognized in the cash flow hedge reserve
is transferred to the net profit in the Statement of Profit and Loss
upon the occurrence of the related forecasted transaction. If the
forecasted transaction is no longer expected to occur, then the
amount accumulated in cash flow hedge reserve is reclassified to
net profit in the Statement of Profit and Loss.
2.11.3 Derecognition of financial instruments
The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer qualifies
for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Company's
Balance Sheet when the obligation specified in the contract is
discharged or cancelled or expires.
2.11.4 Fair value of financial instruments
In determining the fair value of its financial instruments, the
Company uses a variety of methods and assumptions that are
based on market conditions and risks existing at each reporting
date. The methods used to determine fair value include
discounted cash flow analysis, 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.
2.11.5 Impairment
The Company recognizes loss allowances using the expected
credit loss (ECL) model for the financial assets and unbilled
revenues which are not fair valued through profit or loss.
Loss allowance for trade receivables and unbilled revenues
with no significant financing component is measured at an
amount equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount equal to
the 12-month ECL, unless there has been a significant increase
in credit risk from initial recognition in which case those are
measured at lifetime ECL.
The Company determines the allowance for credit losses
based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The Company
considers current and anticipated future economic conditions
relating to industries the Company deals with and the
countries where it operates.
Infosys Integrated Annual Report 2023-24
246
Standalone Financial Statements
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, 2024 are as follows:
(In ₹ crore)
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
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Mandatory
Assets:
Cash and cash equivalents
(Refer to Note 2.9)
8,191
–
–
–
–
8,191
8,191
Investments (Refer to Note 2.5)
Preference securities, equity securities
and others
–
–
84
206
–
290
290
Tax-free bonds and government bonds
1,745
–
–
–
–
1,745
1,959 (1)
Liquid mutual fund units
–
–
1,913
–
–
1,913
1,913
Target maturity fund units
–
–
431
–
–
431
431
Commercial papers
–
–
–
–
4,507
4,507
4,507
Certificates of deposit
–
–
–
–
2,945
2,945
2,945
Non-convertible debentures
–
–
–
–
3,954
3,954
3,954
Government securities
–
–
–
–
6,893
6,893
6,893
Trade receivables (Refer to Note 2.8)
25,152
–
–
–
–
25,152
25,152
Loans (Refer to Note 2.6)
242
–
–
–
–
242
242
Other financial assets (Refer to Note 2.7) (3)
11,804
–
58
–
23
11,885
11,801 (2)
Total
47,134
–
2,486
206
18,322
68,148
68,278
Liabilities:
Trade payables (Refer to Note 2.14)
2,493
–
–
–
–
2,493
2,493
Lease liabilities (Refer to Note 2.3)
3,766
–
–
–
–
3,766
3,766
Other financial liabilities (Refer to Note 2.13)
11,569
–
20
–
1
11,590
11,590
Total
17,828
–
20
–
1
17,849
17,849
(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
Infosys Integrated Annual Report 2023-24
247
The carrying value and fair value of financial instruments by categories as at March 31, 2023 were as follows:
(In ₹ crore)
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
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.9)
6,534
–
–
–
–
6,534
6,534
Investments (Refer to Note 2.5)
Preference securities, equity securities
and others
–
–
82
196
–
278
278
Tax-free bonds and government bonds
1,906
–
–
–
–
1,906
2,134 (1)
Target maturity fund units
–
–
402
–
–
402
402
Liquid mutual fund units
–
–
260
–
–
260
260
Commercial papers
–
–
–
–
420
420
420
Certificates of deposit
–
–
–
–
2,765
2,765
2,765
Non-convertible debentures
–
–
–
–
3,366
3,366
3,366
Government securities
–
–
–
–
6,856
6,856
6,856
Trade receivables (Refer to Note 2.8)
20,773
–
–
–
–
20,773
20,773
Loans (Refer to Note 2.6)
330
–
–
–
–
330
330
Other financial assets (Refer to Note 2.7)(3)
10,350
–
47
–
32
10,429
10,345 (2)
Total
39,893
–
791
196
13,439
54,319
54,463
Liabilities:
Trade payables (Refer to Note 2.14)
2,426
–
–
–
–
2,426
2,426
Lease liabilities (Refer to Note 2.3)
4,266
–
–
–
–
4,266
4,266
Other financial liabilities (Refer to Note 2.13)
11,989
–
42
–
14
12,045
12,045
Total
18,681
–
42
–
14
18,737
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
For trade receivables, trade payables, 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).
Infosys Integrated Annual Report 2023-24
248
Standalone Financial Statements
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2024 is as follows:
(In ₹ crore)
Particulars
As at
March 31,
2024
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Assets
Investments (Refer to Note 2.5)
Investments in tax-free bonds
1,944
1,944
–
–
Investments in government bonds
15
15
–
–
Investments in liquid mutual fund units
1,913
1,913
–
–
Investments in target maturity fund units
431
431
–
–
Investments in certificates of deposit
2,945
–
2,945
–
Investments in commercial papers
4,507
–
4,507
–
Investments in non-convertible debentures
3,954
3,697
257
–
Investments in government securities
6,893
6,820
73
–
Investments in equity securities
115
113
–
2
Investments in preference securities
91
–
–
91
Other investments
84
–
–
84
Others
Derivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
81
–
81
–
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward and
option contracts (Refer to Note 2.13)
21
–
21
–
During the year ended March 31, 2024, tax-free bonds and non-convertible debentures of ₹1,986 crore were transferred from Level 2
to Level 1 of fair value hierarchy since these were valued based on quoted price. Further, state government securities of ₹73 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, 2023 was as follows:
(In ₹ crore)
Particulars
As at March
31, 2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Assets
Investments (Refer to Note 2.5)
Investments in tax-free bonds
2,120
1,331
789
–
Investments in target maturity fund units
402
402
–
–
Investments in government bonds
14
14
–
–
Investments in liquid mutual fund units
260
260
–
–
Investments in certificates of deposit
2,765
–
2,765
–
Investments in commercial papers
420
–
420
–
Investments in non-convertible debentures
3,366
1,364
2,002
–
Investments in government securities
6,856
6,856
–
–
Investments in equity securities
3
–
–
3
Investments in preference securities
193
–
–
193
Infosys Integrated Annual Report 2023-24
249
Particulars
As at March
31, 2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Other investments
82
–
–
82
Others
Derivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
79
–
79
–
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward and
option contracts (Refer to Note 2.13)
56
–
56
–
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.
A one percentage point change in the unobservable inputs used
in fair valuation of Level 3 assets and liabilities does not have a
significant impact in its value.
Majority of investments of the Company are fair valued based
on Level 1 or Level 2 inputs. These investments primarily
include investment in liquid mutual fund units, target maturity
fund units, tax-free bonds, certificates of deposit, commercial
papers, treasury bills, government securities, non-convertible
debentures, quoted bonds issued by government and quasi-
government organizations. 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 Group's
risk management program.
Financial risk management
Financial risk factors
The Company's activities expose it to a variety of financial
risks – market risk, credit risk and liquidity risk. The Company's
primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its
financial performance. The primary market risk to the Company
is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures.
The Company's exposure to credit risk is influenced mainly by the
individual characteristic of each customer and the concentration
of risk from the top few customers.
Market risk
The Company operates internationally and a major portion of
the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk through
its sales and services in the United States and elsewhere, and
purchases from overseas suppliers in various foreign currencies.
The Company holds derivative financial instruments such as
foreign exchange forward and 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 foreign currency risk from financial assets and liabilities as at March 31, 2024 is as follows:
(In ₹ crore)
Particulars
US Dollar
Euro
United
Kingdom
Pound
Sterling
Australian
Dollar
Other
currencies
Total
Net financial assets
23,447
6,929
1,940
1,463
2,575
36,354
Net financial liabilities
(9,918)
(1,911)
(663)
(798)
(1,112)
(14,402)
Total
13,529
5,018
1,277
665
1,463
21,952
Infosys Integrated Annual Report 2023-24
250
Standalone Financial Statements
The analysis of foreign currency risk from financial assets and liabilities as at March 31, 2023 was as follows:
(In ₹ crore)
Particulars
US Dollar
Euro
United
Kingdom
Pound
Sterling
Australian
Dollar
Other
currencies
Total
Net financial assets
18,436
5,442
1,612
1,765
2,278
29,533
Net financial liabilities
(10,017)
(1,898)
(682)
(926)
(1,082)
(14,605)
Total
8,419
3,544
930
839
1,196
14,928
Sensitivity analysis between Indian Rupee and US Dollar
Particulars
Year ended March 31,
2024
2023
Impact on the Company's incremental operating margins
0.46%
0.47%
Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.
Derivative financial instruments
The Company holds derivative financial instruments such as foreign currency forward and 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
As at March 31,
2024
2023
In million
In ₹ crore
In million
In ₹ crore
Derivatives designated as cash flow hedges
Forward contracts
In Euro
30
270
–
–
Option contracts
In Euro
236
2,121
325
2,907
In Australian Dollar
106
573
140
770
In United Kingdom Pound Sterling
35
368
55
559
Other derivatives
Forward contracts
In US Dollar
1,223
10,203
1,486
12,209
In Euro
554
4,975
266
2,382
In Singapore Dollar
171
1,046
45
278
In United Kingdom Pound Sterling
78
818
76
775
In Swiss Franc
16
150
–
–
In New Zealand Dollar
30
149
30
154
In Danish Krone
100
121
–
–
In Norwegian Krone
130
100
100
79
In Canadian Dollar
15
92
–
–
In Australian Dollar
14
75
10
55
In Hungarian Forint
2,500
57
–
–
In Chinese Yuan
43
49
–
–
In South African rand
85
37
85
39
Infosys Integrated Annual Report 2023-24
251
Particulars
As at March 31,
2024
2023
In million
In ₹ crore
In million
In ₹ crore
Option contracts
In Australian Dollar
20
111
30
165
In Euro
100
897
160
1,431
In United Kingdom Pound Sterling
–
–
15
153
In US Dollar
543
4,527
300
2,465
Total forwards and option contracts
26,739
24,421
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:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Not later than one month
9,581
10,972
Later than one month and not
later than three months
15,181
10,122
Later than three months and not
later than one year
1,977
3,327
Total
26,739
24,421
During the year ended March 31, 2024 and March 31, 2023, the
Company has designated certain foreign exchange forward
and option contracts as cash flow hedges to mitigate the risk
of foreign exchange exposure on highly probable forecast
cash transactions. The related hedge transactions for balance
in cash flow hedge reserve as at March 31, 2024 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 year ended
March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Gain / (Loss)
Balance at the beginning of the
year
(5)
2
Gain / (Loss) recognized in other
comprehensive income during the
year
8
90
Amount reclassified to profit and
loss during the year
7
(99)
Tax impact on above
(4)
2
Balance at the end of the year
6
(5)
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:
(In ₹ crore)
Particulars
As at March 31, 2024
As at March 31, 2023
Derivative
financial
asset
Derivative
financial
liability
Derivative
financial
asset
Derivative
financial
liability
Gross amount of recognized financial asset / liability
93
(33)
103
(80)
Amount set off
(12)
12
(24)
24
Net amount presented in Balance Sheet
81
(21)
79
(56)
Infosys Integrated Annual Report 2023-24
252
Standalone Financial Statements
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 ₹25,152 crore and
₹20,773 crore as at March 31, 2024 and March 31, 2023,
respectively and unbilled revenue amounting to ₹10,814 crore
and ₹12,384 crore as at March 31, 2024 and March 31, 2023,
respectively. Trade receivables and unbilled revenue are typically
unsecured and are derived from revenue from customers
majorly located in the United States of America 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:
(In %)
Particulars
Year ended March 31,
2024
2023
Revenue from top five customers
11.6
11.3
Revenue from top ten customers
18.9
19.6
Credit risk exposure
The Company's credit period generally ranges from 30-75 days.
The allowance for lifetime expected credit loss on customer
balances recognized for the year ended March 31, 2024 and
March 31, 2023 is ₹108 crore and ₹139 crore, respectively.
The movement in credit loss allowance on customer
balance is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Balance at the beginning
699
673
Impairment loss recognized /
(reversed), net
108
139
Amounts written off
(93)
(145)
Translation differences
7
32
Balance at the end
721
699
The gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
Credit risk on cash and cash equivalents is limited as the
Company generally invest in deposits with banks 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.
The investments of the Company primarily include investment
in liquid mutual fund units, target maturity fund units,
tax-free bonds, certificates of deposit, commercial paper,
treasury bills, government securities, non-convertible
debentures, quoted bonds issued by government and quasi
government organizations. 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 Group’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, 2024, the Company had a working capital of
₹43,866 crore including cash and cash equivalents of ₹8,191 crore
and current investments of ₹11,306 crore. 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, 2024 and March 31, 2023, the outstanding
compensated absences were ₹2,159 crore and ₹1,969 crore,
respectively, which have been substantially funded. Accordingly,
no liquidity risk is perceived.
Infosys Integrated Annual Report 2023-24
253
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2024 are as follows:
(In ₹ crore)
Particulars
Less than 1
year
1-2 years
2-4 years
4-7 years
Total
Trade payables
2,493
–
–
–
2,493
Other financial liabilities on an undiscounted basis
(Refer to Note 2.13)
9,697
1,240
567
67
11,571
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2023 were as follows:
(In ₹ crore)
Particulars
Less than 1
year
1-2 years
2-4 years
4-7 years
Total
Trade payables
2,426
–
–
–
2,426
Other financial liabilities on an undiscounted basis
(Refer to Note 2.13)
10,752
965
264
13
11,994
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 a 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 Re-investment reserve has been
created out of the profit of the eligible SEZ unit in terms of the
provisions of Section 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
(In ₹ crore, except as otherwise stated)
Particulars
Year ended March 31,
2024
2023
Authorized
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000)
equity shares
2,400
2,400
Issued, subscribed and paid-up
Equity shares, ₹5 par value (1)
2,075
2,074
415,08,67,464 (414,85,60,044) equity
shares fully paid-up
2,075
2,074
(1) Refer to Note 2.22 for details of basic and diluted shares
Forfeited shares amounted to ₹1,500 (₹1,500)
Infosys Integrated Annual Report 2023-24
254
Standalone Financial Statements
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.
There are no voting, dividend or liquidation rights to the holders
of options issued under the Company's share option plans.
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, 2024:
Buyback
In the period of five years immediately preceding
March 31, 2024, the Company had purchased and extinguished
a total of 21,41,00,951 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 from financial year 2025, the Company expects to
continue its policy of returning approximately 85% of the
free cash flow cumulatively over a five-year period through a
combination of semi-annual dividends and / or share
buyback / special dividends subject to applicable laws and
requisite approvals, if any. Under this policy, the Company
expects to progressively increase its annual dividend per share
(excluding special dividend 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 a 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.
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, 2024, 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,
2024 are as follows:
Promoter name
No. of shares
% of
total
shares
% change
during the
year
Sudha Gopalakrishnan
9,53,57,000
2.30
–
Rohan Murty
6,08,12,892
1.47
–
S. Gopalakrishnan
3,18,53,808
0.77
(23.89)
Nandan M. Nilekani
4,07,83,162
0.98
–
Akshata Murty
3,89,57,096
0.94
–
Asha Dinesh
3,85,79,304
0.93
–
Sudha N. Murty
3,45,50,626
0.83
–
Rohini Nilekani
3,43,35,092
0.83
–
Dinesh Krishnaswamy
3,24,79,590
0.78
–
Shreyas Shibulal
2,13,23,515
0.51
(10.04)
N. R. Narayana Murthy
1,51,45,638
0.36
(9.01)
Nihar Nilekani
1,26,77,752
0.31
–
Janhavi Nilekani
85,89,721
0.21
–
Kumari Shibulal
49,45,935
0.12
(5.77)
Deeksha Dinesh
76,46,684
0.18
–
Divya Dinesh
76,46,684
0.18
–
Meghana Gopalakrishnan
1,48,34,928
0.36
206.83
Shruti Shibulal
27,37,538
0.07
–
S. D. Shibulal
52,08,673
0.13
(10.42)
Ekagrah Rohan Murty
15,00,000
0.04
100.00
Promoters Group
Gaurav Manchanda
1,25,24,106
0.30
(8.82)
Milan Shibulal Manchanda
65,13,389
0.16
(6.52)
Infosys Integrated Annual Report 2023-24
255
Promoter name
No. of shares
% of
total
shares
% change
during the
year
Nikita Shibulal Manchanda
65,13,389
0.16
(6.52)
Bhairavi Madhusudhan
Shibulal
60,21,716
0.15
(9.84)
Shray Chandra
7,19,424
0.02
–
Tanush Nilekani Chandra
33,56,017
0.08
–
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.
The amount of per share dividend recognized as distribution to
equity shareholders is as follows:
(In ₹)
Particulars
Year ended March 31,
2024
2023
Final dividend for fiscal 2022
–
16.00
Interim dividend for fiscal 2023
–
16.50
Final dividend for fiscal 2023
17.50
–
Interim dividend for fiscal 2024
18.00
–
During the year ended March 31, 2024, on account of the final
dividend for fiscal 2023 and interim dividend for fiscal 2024, the
Company has incurred a net cash outflow of ₹14,733 crore.
The Board of Directors, in its meeting held on April 18, 2024,
recommended a final dividend of ₹20 per equity share for the
financial year ended March 31, 2024 and a special dividend of
₹8 per equity share. The payment is subject to the approval of
shareholders in the AGM of the Company to be held on
June 26, 2024 and if approved, would result in a net cash outflow
of approximately ₹11,622 crore.
The details of shareholders holding more than 5% shares as at March 31, 2024 and March 31, 2023 are as follows:
Name of the shareholder
As at March 31, 2024
As at March 31, 2023
Number of shares
% held
Number of shares
% held
Deutsche Bank Trust Company Americas
(Depository of ADRs – legal ownership)
44,24,17,564
10.66
50,57,90,851
12.19
Life Insurance Corporation of India
38,59,52,941
9.30
29,82,44,977
7.19
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore, except as stated otherwise)
Name of the shareholder
As at March 31, 2024
As at March 31, 2023
Number of shares
Amount
Number of shares
Amount
As at the beginning of the period
414,85,60,044
2,074
420,67,38,641
2,103
Add: Shares issued on exercise of employee stock options
23,07,420
1
22,47,751
1
Less: Shares bought back
–
–
6,04,26,348
30
As at the end of the period
415,08,67,464
2,075
414,85,60,044
2,074
2.12.4 Employee Stock Option Plan (ESOP)
Accounting policy
The Company recognizes compensation expense relating to
share-based payments in net profit based on estimated fair-
values of the awards on the grant date. The estimated fair value
of awards is recognized as an expense in the Statement of Profit
and Loss on a straight-line basis over the requisite service period
for each separately vesting portion of the award as if the award
was in-substance, multiple awards with a corresponding increase
to share options outstanding account.
Infosys Expanded Stock Ownership Program 2019 ("the 2019 Plan")
On June 22, 2019, pursuant to approval by the shareholders in
the Annual General Meeting, the Board has been authorized to
introduce, offer, issue and provide share-based incentives to
eligible employees of the Company and its subsidiaries under
the 2019 Plan. The maximum number of shares under the 2019
Plan shall not exceed 5,00,00,000 equity shares. To implement
the 2019 Plan, up to 4,50,00,000 equity shares may be issued
by way of secondary acquisition of shares by Infosys Expanded
Stock Ownership Trust. The Restricted Stock Units (RSUs) granted
under the 2019 Plan shall vest based on the achievement of
Infosys Integrated Annual Report 2023-24
256
Standalone Financial Statements
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 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 (these include 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 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
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 1,09,16,829 shares and 1,21,72,119 shares
as at March 31, 2024 and March 31, 2023, 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, 2024 and March 31, 2023.
The summary of grants made during year ended March 31, 2024 and March 31, 2023 is as follows:
Particulars
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Equity-settled RSUs
Key Management Personnel (KMP)
1,41,171
2,10,643
4,98,730
3,67,479
Employees other than KMP
40,46,731
37,04,014
46,40,640
17,84,975
41,87,902
39,14,657
51,39,370
21,52,454
Cash-settled RSUs
Key Management Personnel (KMP)
–
–
–
–
Employees other than KMP
–
–
1,76,990
92,400
–
–
1,76,990
92,400
Total grants
41,87,902
39,14,657
53,16,360
22,44,854
Notes on grants to KMP:
CEO & MD
Under the 2015 Plan
The Board, on April 13, 2023, based on the recommendations
of the Nomination and Remuneration Committee, approved
the following grants for fiscal 2024. In accordance with such
approval, the following grants were made effective May 2, 2023:
•
2,72,026 performance-based RSUs (annual performance
equity grant) of fair value of ₹34.75 crore. These RSUs will
vest in line with the employment agreement based on
achievement of certain performance targets.
•
15,656 performance-based grant of RSUs (annual
performance equity ESG grant) of fair value of ₹2 crore.
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.
•
39,140 performance-based grant of RSUs (annual
performance equity TSR grant) of fair value of ₹5 crore . 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.
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 18,104 RSUs was
made effective February 1, 2024 for fiscal 2024.
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, 2024,
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 payments.
The grant date for this purpose in accordance with Ind AS 102,
Share-based payments is July 1, 2022.
Under the 2019 Plan
The Board, on April 13, 2023, based on the recommendations
of the Nomination and Remuneration Committee, approved a
performance-based grant of RSUs amounting to ₹10 crore for
fiscal 2024 under the 2019 Plan. These RSUs will vest based on
achievement of certain performance targets. Accordingly, 78,281
performance-based RSUs were granted effective May 2, 2023.
Infosys Integrated Annual Report 2023-24
257
Other KMP
Under the 2015 Plan
During the year ended March 31, 2024, based on
recommendations of Nomination and Remuneration
Committee, the Board approved 1,47,030 time-based RSUs and
6,774 performance-based RSUs to other KMP under the 2015
Plan. Time-based RSUs will vest over three to four years and
performance-based RSUs will vest over three years based on
certain performance targets.
Under the 2019 Plan
During the year ended March 31, 2024, based on
recommendations of Nomination and Remuneration Committee,
the Board approved performance-based grants of 62,890 RSUs to
other KMPs under the 2019 Plan. These RSUs will vest over three
years based on achievement of certain performance targets.
The break-up of employee stock compensation
expense is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Granted to:
KMP*
68
49
Employees other than KMP
507
411
Total (1)
575
460
(1) Cash-settled stock compensation
expense included in the above
5
1
* Includes reversal of employee stock compensation expense on account of
resignation / retirement of key managerial personnel.
The activity in the 2015 and 2019 Plan for equity-settled, share-based payment transactions during the year ended March 31, 2024 and
March 31, 2023 is as follows:
Particulars
Year ended March 31, 2024
Year ended March 31, 2023
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
54,08,018
5.00
62,32,975
4.82
Granted
51,39,370
5.00
21,52,454
5.00
Exercised
18,15,025
5.00
21,05,904
4.50
Forfeited and expired
6,56,305
5.00
8,71,507
4.93
Outstanding at the end
80,76,058
5.00
54,08,018
5.00
Exercisable at the end
8,31,050
4.98
7,87,976
4.97
2015 Plan: Employee Stock Options (ESOPs)
Outstanding at the beginning
1,34,030
529
7,00,844
557
Granted
–
–
–
–
Exercised
51,980
499
5,66,814
596
Forfeited and expired
–
–
–
–
Outstanding at the end
82,050
551
1,34,030
529
Exercisable at the end
82,050
551
1,34,030
529
2019 Plan: RSUs
Outstanding at the beginning
72,22,038
5.00
49,58,938
5.00
Granted
41,87,902
5.00
39,14,657
5.00
Exercised
16,95,705
5.00
11,28,626
5.00
Forfeited and expired
16,90,380
5.00
5,22,931
5.00
Outstanding at the end
80,23,855
5.00
72,22,038
5.00
Exercisable at the end
8,14,798
5.00
13,52,150
5.00
Infosys Integrated Annual Report 2023-24
258
Standalone Financial Statements
The weighted average share price of option exercised is as follows:
(In ₹)
Particulars
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Weighted average share price of options exercised
1,352
1,485
1,414
1,515
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2024 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)
80,23,855
1.42
5.00
80,76,058
1.77
5.00
450-640 (ESOP)
–
–
–
82,050
1.10
551
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 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)
72,22,038
1.33
5.00
54,08,018
1.49
5.00
450-630 (ESOP)
–
–
–
1,34,030
1.77
529
As at March 31, 2024 and March 31, 2023, 2,91,795 and 2,24,924 cash-settled options were outstanding, respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹13 crore and ₹4 crore as at March 31, 2024 and March 31, 2023, 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 2024 –
Equity shares
– RSU
Fiscal 2024 –
ADS – RSU
Fiscal 2023 –
Equity shares
– RSU
Fiscal 2023 –
ADS – RSU
Weighted average share price (₹) / ($ ADS)
1,588
19.19
1,525
18.08
Exercise price (₹) / ($ ADS)
5.00
0.07
5.00
0.07
Expected volatility (%)
23-31
25-33
23-32
27-34
Expected life of the option (years)
1-4
1-4
1-4
1-4
Expected dividends (%)
2-3
2-3
2-3
2-3
Risk-free interest rate (%)
7
4-5
5-7
2-5
Weighted average fair value as on grant date (₹) / ($ ADS)
1,317
16.27
1,210
13.69
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.
Infosys Integrated Annual Report 2023-24
259
2.13 Other financial liabilities
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Others
Compensated absences
81
76
Accrued compensation to employees (1)
7
5
Accrued expenses (1)
1,779
1,184
Other payables (1)(6)
74
52
Total non-current other financial liabilities
1,941
1,317
Current
Unpaid dividends (1)
37
37
Others
Accrued compensation to employees (1)
3,336
3,072
Accrued expenses (1)(4)
5,134
4,430
Capital creditors (1)
269
652
Compensated absences
2,078
1,893
Other payables (1)(5)(6)
933
2,557
Foreign currency forward and options contracts (2)(3)
21
56
Total current other financial liabilities
11,808
12,697
Total other financial liabilities
13,749
14,014
(1) Financial liability carried at amortized cost
11,569
11,989
(2) Financial liability carried at fair value through profit or loss
20
42
(3) Financial liability carried at fair value through other comprehensive income
1
14
(4) Includes dues to subsidiaries
29
30
(5) Includes dues to subsidiaries
405
422
(6) Deferred contract cost 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 financing arrangements with a third-party for these assets. As at March 31, 2024 and March 31, 2023, the financial liability pertaining to such
arrangements amounts to ₹58 crore and ₹114 crore, respectively (Refer to Note 2.10).
Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges,
brand building expenses, overseas travel expenses, office maintenance and cost of third-party software and hardware.
2.14 Trade payables
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Outstanding dues of micro enterprises and small enterprises
92
97
Outstanding dues of creditors other than micro enterprises and small enterprises(1)
2,401
2,329
Total trade payables
2,493
2,426
(1) Includes dues to subsidiaries
778
653
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 on the basis of information available with the Company.
Infosys Integrated Annual Report 2023-24
260
Standalone Financial Statements
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Amount remaining unpaid :
Principal
92
97
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
6
33
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 year ended March 31, 2024 and March 31, 2023 is as follows:
(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
92
–
–
–
–
92
97
–
–
–
–
97
Others
2,039
362
–
–
–
2,401
1,943
386
–
–
–
2,329
Total trade payables
2,131
362
–
–
–
2,493
2,040
386
–
–
–
2,426
Relationship with struck off companies
There are no transactions with struck off companies for the year ending March 31, 2024 and March 31, 2023.
2.15 Other liabilities
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Accrued defined benefit liability
123
412
Others
27
2
Total non-current other liabilities
150
414
Current
Accrued defined benefit liability
2
2
Particulars
As at March 31,
2024
2023
Unearned revenue
5,698
5,491
Others
Withholding taxes and others
1,974
2,088
Others
7
28
Total current other liabilities
7,681
7,609
Total other liabilities
7,831
8,023
Infosys Integrated Annual Report 2023-24
261
2.16 Provisions
Accounting policy
A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
is reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks
specific to the liability.
a. Post-sales client support
The Company provides its clients with a fixed-period post-sales
support on its fixed-price, fixed-timeframe contracts. Costs
associated with such support services are accrued at the time
related revenues are recorded in the Statement of Profit and
Loss. The Company estimates such costs based on historical
experience and estimates are reviewed on a periodic basis for any
material changes in assumptions and likelihood of occurrence.
b. Onerous contracts
Provisions for onerous contracts are recognized when the
expected benefits to be derived by the Company from a contract
are lower than the unavoidable costs of meeting the future
obligations under the contract. Provisions for estimated losses,
if any, on incomplete contracts are recorded in the period in
which such losses become probable based on the estimated
efforts or costs to complete the contract. The provision is
measured at the present value of the lower of the expected
cost of terminating 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
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Current
Others
Post-sales client support and
other provisions
1,464
1,163
Total provisions
1,464
1,163
The movement in the provision for post-sales client
support is as follows:
(In ₹ crore)
Particulars
As at March 31, 2024
Balance at the beginning
1,163
Provision recognized / (reversed)
689
Provision utilized
(396)
Translation difference
8
Balance at the end
1,464
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 and are expected to apply to
taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect of changes
in tax rates on deferred income tax assets and liabilities is
recognized as income or expense in the period that includes
the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable
that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized.
Deferred income taxes are not provided on the undistributed
earnings of subsidiaries and branches where it is expected that
the earnings of the subsidiary or branch will not be distributed in
the foreseeable future.
The Company offsets current tax assets and current tax
liabilities; 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.
Infosys Integrated Annual Report 2023-24
262
Standalone Financial Statements
Income tax expense in the Statement of Profit and Loss comprises:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Current taxes
7,306
8,167
Deferred taxes
1,413
208
Income tax expense
8,719
8,375
A reconciliation of the income tax provision to the amount
computed by applying the statutory income tax rate to the
income before income taxes is as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Profit before income taxes
35,953
31,643
Enacted tax rates in India
34.94%
34.94%
Computed expected tax expense
12,564
11,057
Tax effect due to non-taxable
income for Indian tax purposes
(3,009)
(2,916)
Overseas taxes
1,081
1,028
Tax provision (reversals)
(913)
(116)
Effect of exempt non-operating
income
(1,086)
(563)
Effect of non-deductible expenses
135
144
Effect of differential tax rates
(189)
–
Others
136
(259)
Income tax expense
8,719
8,375
The applicable Indian corporate statutory tax rate for the year
ended March 31, 2024 and March 31, 2023 is 34.94%.
Income tax expense for the year ended March 31, 2024 and
March 31, 2023 includes reversal (net of provisions) of ₹913
crore and ₹116 crore, respectively. These reversals pertaining to
prior periods is primarily on account of adjudication of certain
disputed matters, upon filing of tax return and completion of
assessments, across various jurisdictions.
During the year ended March 31, 2024, the Company received
orders under Sections 250 and 254 of the Income-tax Act, 1961,
from the Income Tax Authorities in India for the assessment
years, 2007-08 to 2015-16, 2017-18 and 2018-19. These orders
confirmed the Company's position with respect to tax treatment
of certain contentious matters. As a result interest income (pre-
tax) of ₹1,933 crore was recognized and provision for income
tax aggregating ₹525 crore was reversed with a corresponding
credit to the Statement of Profit and Loss. Also, upon resolution
of the disputes, an amount aggregating to ₹1,628 crore has been
reduced from contingent liabilities.
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 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. (Refer to Special Economic Zone Re-investment reserve
under Note 2.12 Equity).
Deferred income tax for the year ended March 31, 2024 and
March 31, 2023 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, 2024, Infosys' US branch net assets amounted to
approximately ₹7,844 crore. As at March 31, 2024, the Company
has a deferred tax liability for branch profit tax of ₹269 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 ₹10,776 crore and
₹10,948 crore as at March 31, 2024 and March 31, 2023,
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 each as at March 31, 2024
and March 31, 2023, 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.
Infosys Integrated Annual Report 2023-24
263
The details of income tax assets and income tax liabilities as at March 31, 2024 and March 31, 2023 are as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Income tax assets
8,912
5,916
Current income tax liabilities
2,962
2,834
Net current income tax assets / (liabilities) at the end
5,950
3,082
The gross movement in the current income tax assets / (liabilities) for the year ended March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Net current income tax assets / (liabilities) at the beginning
3,082
3,406
Income tax paid
8,235
7,807
Interest on income tax refund
1,934
–
Current income tax expense
(7,306)
(8,167)
Income tax benefit arising on exercise of stock options
3
51
Income tax on other comprehensive income
2
(22)
Tax impact on buyback expenses
–
9
Impact on account of Ind AS 37 adoption
–
(2)
Net current income tax assets / (liabilities) at the end
5,950
3,082
The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2024 is as follows:
(In ₹ crore)
Particulars
Carrying
value as of
April 1, 2023
Changes
through
profit and
loss
Changes
through OCI
Impact on
account of
Ind AS 37
adoption
Translation
difference
Carrying
value as of
March 31,
2024
Deferred income tax assets / (liabilities)
Property, plant and equipment
211
69
–
–
–
280
Lease liabilities
199
(26)
–
–
–
173
Trade receivables
211
(30)
–
–
–
181
Compensated absences
501
41
–
–
–
542
Post-sales client support
188
(169)
–
–
–
19
Derivative financial instruments
–
(7)
(4)
–
–
(11)
Credits related to branch profits
718
84
–
–
9
811
Intangibles through business transfer
2
(1)
–
–
–
1
Branch profit tax
(866)
(202)
–
–
(12)
(1,080)
SEZ re-investment reserve
(1,329)
(610)
–
–
–
(1,939)
Interest receivable on income tax refund
–
(487)
–
–
–
(487)
Others
78
(75)
(4)
–
2
1
Total deferred income tax assets / (liabilities)
(87)
(1,413)
(8)
–
(1)
(1,509)
Infosys Integrated Annual Report 2023-24
264
Standalone Financial Statements
The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2023 was as follows:
(In ₹ crore)
Particulars
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
Carrying value
as of March
31, 2023
Deferred income tax assets / (liabilities)
Property, plant and equipment
189
22
–
–
–
211
Lease liabilities
163
36
–
–
–
199
Trade receivables
169
42
–
–
–
211
Compensated absences
466
35
–
–
–
501
Post-sales client support
118
68
–
2
–
188
Derivative financial instruments
(24)
22
2
–
–
–
Credits related to branch profits
676
(13)
–
–
55
718
Intangibles through business transfer
(4)
6
–
–
–
2
Branch profit tax
(834)
35
–
–
(67)
(866)
SEZ re-investment reserve
(830)
(499)
–
–
–
(1,329)
Others
40
38
–
–
–
78
Total deferred income tax assets / (liabilities)
129
(208)
2
2
(12)
(87)
The tax effects of significant temporary differences that resulted
in deferred income tax assets and liabilities are as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Deferred income tax assets after
set off
–
779
Deferred income tax liabilities after
set off
(1,509)
(866)
In assessing the reliability of deferred income tax assets, the
Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible. The
Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income, and tax
planning strategies in making this assessment. Based on the level
of historical taxable income and projections for future taxable
income over the periods in which the deferred income tax assets
are deductible, management believes that the Company will
realize the benefits of those deductible differences. The amount
of the deferred income tax assets considered realizable, however,
could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.
The Company’s Advanced Pricing Arrangement (APA) with the
Internal Revenue Service (IRS) for US branch income tax expired
in March 2021. The Company has applied for renewal of APA and
currently the US taxable income is based on the Company’s best
estimate determined based on the expected value method.
2.18 Revenue from operations
Accounting policy
The Company derives revenues primarily from IT services
comprising software development and related services, 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 to
contract are committed to perform their respective obligations
under the contract, and the contract is legally enforceable.
Revenue is recognized upon transfer of control of promised
products or services (“performance obligations”) to customers
in an amount that reflects the consideration the Company has
received or expects to receive in exchange for these products
or services (“transaction price”). When there is uncertainty as
to collectability, revenue recognition is postponed until such
uncertainty is resolved.
The Company assesses the services promised in a contract and
identifies distinct performance obligations in the contract.
The Company allocates the transaction price to each distinct
performance obligation based on the relative standalone selling
price. The price that is regularly charged for an item when
sold separately is the best evidence of its standalone selling
price. In the absence of such evidence, the primary method
used to estimate standalone selling price is the expected cost
plus a margin, under which the Company estimates the cost
of satisfying the performance obligation and then adds an
appropriate margin based on similar services.
Infosys Integrated Annual Report 2023-24
265
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
revenue while billing in excess of revenues are classified as
contract liabilities (which we refer to as "unearned revenues").
In arrangements for software development and related
services and maintenance services, by applying the revenue
recognition criteria for each distinct performance obligation,
the arrangements with customers generally meet the criteria
for considering software development and related services as
distinct performance obligations. For allocating the transaction
price, the Company measures the revenue in respect of each
performance obligation of a contract at its relative standalone
selling price. The price that is regularly charged for an item when
sold separately is the best evidence of its standalone selling
price. In cases where the Company is unable to determine the
standalone selling price, the Company uses the expected cost
plus margin approach in estimating the standalone selling
price. For software development and related services, the
performance obligations are satisfied as and when the services
are rendered since the customer generally obtains control of the
work as it progresses.
Certain cloud and infrastructure services contracts include
multiple elements which may be subject to other specific
accounting guidance, such as leasing guidance. These contracts
are accounted in accordance with such specific accounting
guidance. In such arrangements where the Company is
able to determine that hardware and services are distinct
performance obligations, it allocates the consideration to these
performance obligations on a relative standalone selling price
basis. In the absence of standalone selling price, the Company
uses the expected cost-plus margin approach in estimating
the standalone selling price. When such arrangements are
considered as a single performance obligation, revenue
is recognized over the period and measure of progress is
determined based on promise in the contract.
Revenue from licenses where the customer obtains a “right
to use” the licenses is recognized at the time the license
is made available to the customer. Revenue from licenses
where the customer obtains a “right to access” is recognized
over the access period.
Arrangements to deliver software products generally have
three elements: license, implementation and Annual Technical
Services (ATS). When implementation services are provided in
conjunction with the licensing arrangement and the license
and implementation have been identified as two distinct
separate performance obligations, the transaction price for
such contracts are allocated to each performance obligation of
the contract based on their relative standalone selling prices.
In the absence of standalone selling price for implementation,
the Company uses the expected cost plus margin approach
in estimating the standalone selling price. Where the license
is required to be substantially customized as part of the
implementation service the entire arrangement fee for license
and implementation is considered to be a single performance
obligation and the revenue is recognized using the percentage-
of-completion method as the implementation is performed.
Revenue from client training, support and other services arising
due to the sale of software products is recognized as the
performance obligations are satisfied. ATS revenue is recognized
ratably on a straight line basis over the period in which the
services are rendered.
Contracts with customers includes subcontractor services or
third-party vendor equipment or software in certain integrated
services arrangements. In these types of arrangements, revenue
from sales of third-party vendor products or services is recorded
net of costs when the Company is acting as an agent between
the customer and the vendor, and gross when the Company
is the principal for the transaction. In doing so, the Company
first evaluates whether it obtains control of the specified goods
or services before they are transferred to the customer. The
Company considers whether it is primarily responsible for
fulfilling the promise to provide the specified goods or services,
inventory risk, pricing discretion and other factors to determine
whether it controls the specified goods or services and therefore,
is acting as a principal or an agent.
A contract modification is a change in the scope or price or both
of a contract that is approved by the parties to the contract.
A contract modification that results in the addition of distinct
performance obligations are accounted for either as a separate
contract if the additional services are priced at the standalone
selling price or as a termination of the existing contract and
Infosys Integrated Annual Report 2023-24
266
Standalone Financial Statements
creation of a new contract if they are not priced at the standalone
selling price. If the modification does not result in a distinct
performance obligation, it is accounted for as part of the existing
contract on a cumulative catch-up basis.
The incremental costs of obtaining a contract (i.e., costs
that would not have been incurred if the contract had not
been obtained) are recognized as an asset if the Company
expects to recover them.
Certain eligible, nonrecurring costs (e.g. set-up or transition
or transformation costs) that do not represent a separate
performance obligation are recognized as an asset when
such costs (a) relate directly to the contract; (b) generate
or enhance resources of the Company that will be used in
satisfying the performance obligation in the future; and (c) are
expected to be recovered.
Capitalized contract costs relating to upfront payments to
customers are amortized to revenue and other capitalized costs
are amortized to expenses over the respective contract life
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates. Capitalized costs
are monitored regularly for impairment. Impairment losses are
recorded when present value of projected remaining operating
cash flows is not sufficient to recover the carrying amount of
the capitalized costs.
The Company presents revenues net of indirect taxes in its
Statement of Profit and Loss.
Revenue from operations for the year ended March 31, 2024 and
March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Revenue from software services
1,28,637
1,23,755
Revenue from products and
platforms
296
259
Total revenue from operations
1,28,933
1,24,014
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
the year ended March 31, 2024 and March 31, 2023 is 56%
and 55%, 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 is dependent on completion
of contractual milestones.
Invoicing in excess of earnings are classified as unearned revenue.
Trade receivables and unbilled revenues are presented net of
impairment in the Balance Sheet.
During the year ended March 31, 2024 and March 31, 2023, the
Company recognized revenue of ₹4,189 crore and ₹4,391 crore
arising from opening unearned revenue as of April 1, 2023 and
April 1, 2022, respectively.
During the year ended March 31, 2024 and March 31, 2023, ₹6,396
crore and ₹5,378 crore of unbilled revenue pertaining to other
fixed-price and fixed-time frame contracts as of April 1, 2023 and
April 1, 2022, respectively has been reclassified to trade receivables
upon billing to customers on completion of milestones.
Remaining performance obligation disclosure
The remaining performance obligation disclosure provides the
aggregate amount of the transaction price yet to be recognized
as at the end of the reporting period and an explanation as
to when the Company expects to recognize these amounts in
revenue. Applying the practical expedient as given in Ind AS
115, the Company has not disclosed the remaining performance
obligation related disclosures for contracts where the revenue
recognized corresponds directly with the value to the customer
of the entity's performance completed to date, typically those
contracts where invoicing is on time-and-material and unit
of work-based contracts. Remaining performance obligation
estimates are subject to change and are affected by several
factors, including terminations, changes in the scope of
contracts, periodic revalidations, adjustment for revenue that has
not materialized and adjustments for currency fluctuations.
The aggregate value of performance obligations that are
completely or partially unsatisfied as at March 31, 2024, other
than those meeting the exclusion criteria mentioned above, is
₹80,334 crore. Out of this, the Company expects to recognize
revenue of around 53.7% 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, 2023 was ₹70,680 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.
Infosys Integrated Annual Report 2023-24
267
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.
Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue,
expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction.
Other Comprehensive Income, net of taxes includes translation
differences on non-monetary financial assets measured at
fair value at the reporting date, such as equities classified as
financial instruments and measured at fair value through other
comprehensive income (FVOCI).
Government grant
The Company recognizes government grants only when there is
reasonable assurance that the conditions attached to them shall
be complied with, and the grants will be received. Government
grants related to assets are treated as deferred income and are
recognized in the net profit in the Statement of Profit and Loss
on a systematic and rational basis over the useful life of the
asset. Government grants related to revenue are recognized on
a systematic basis in the net profit in the Statement of Profit and
Loss over the periods necessary to match them with the related
costs which they are intended to compensate.
Other income for the year ended March 31, 2024 and
March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Interest income on financial assets
carried at amortized cost
Tax-free bonds and
government bonds
131
148
Deposit with bank and others
665
567
Interest income on financial assets
carried at fair value through other
comprehensive income
Non-convertible debentures,
commercial papers, certificates
of deposit and government
securities
898
850
Income on investments carried
at fair value through other
comprehensive income
–
1
Income on investments carried at
fair value through profit or loss
Gain / (Loss) on liquid mutual
funds and other investments
224
142
Interest on income tax refund
1,936
–
Dividend received from subsidiary
2,976
1,463
Exchange gains / (losses) on foreign
currency forward and options
contracts
111
(531)
Exchange gains / (losses) on
translation of other assets and
liabilities
214
960
Miscellaneous income, net
262
259
Total other income
7,417
3,859
2.20 Expenses
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Employee benefit expenses
Salaries including bonus
62,383
60,194
Contribution to provident and other
funds
1,972
1,914
Share-based payments to employees
(Refer to Note 2.12)
575
460
Staff welfare
209
196
65,139
62,764
Infosys Integrated Annual Report 2023-24
268
Standalone Financial Statements
Particulars
Year ended March 31,
2024
2023
Cost of software packages and others
For own use
1,635
1,454
Third-party items bought for
service delivery to clients
5,256
3,760
6,891
5,214
Other expenses
Power and fuel
172
155
Brand and Marketing
851
756
Short-term leases
16
22
Rates and taxes
248
217
Repairs and maintenance
953
922
Consumables
23
23
Insurance
172
140
Provision for post-sales client
support and others
77
121
Commission to non-whole time
directors
16
15
Impairment loss recognized /
(reversed) under expected credit
loss model
130
183
Auditor's remuneration
Statutory audit fees
8
7
Tax matters
–
–
Other services
–
–
Contributions towards Corporate
Social Responsibility
492
437
Others
430
283
3,588
3,281
2.21 Employee benefits
Accounting policy
2.21.1 Gratuity and pensions
The Company provides for gratuity, a defined benefit retirement
plan ("the Gratuity Plan") covering eligible Indian employees.
The Gratuity Plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee's
salary and the tenure of employment 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.
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
determined by actuarial valuation performed by an external
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.
Infosys Integrated Annual Report 2023-24
269
a. Gratuity and pension
The details of the defined benefit retirement plans and the amounts recognized in the Standalone financial statements as at
March 31, 2024 and March 31, 2023 are as follows:
(In ₹ crore)
Particulars
Gratuity
Pension
As at March 31,
As at March 31,
2024
2023
2024
2023
Change in benefit obligations
Benefit obligations at the beginning
1,524
1,467
591
610
Service cost
280
249
30
23
Interest expense
104
88
11
3
Past service cost – plan amendments
–
1
(28)
–
Transfer
32
3
–
–
Remeasurements – Actuarial (gains) / losses
22
(65)
18
(76)
Employee contribution
–
–
23
18
Benefits paid
(132)
(233)
29
(45)
Translation difference
–
14
12
58
Benefit obligations at the end
1,830
1,524
686
591
Change in plan assets
Fair value of plan assets at the beginning
1,516
1,477
537
534
Interest income
110
91
10
2
Transfer
3
4
–
–
Remeasurements – Return on plan assets excluding amounts
included in interest income
15
20
11
(46)
Employee contribution
–
–
23
18
Employer contribution
303
155
29
22
Benefits paid
(130)
(231)
29
(45)
Translation difference
–
–
11
52
Fair value of plan assets at the end
1,817
1,516
650
537
Funded status
(13)
(8)
(36)
(54)
Defined benefit plan asset (Refer to Note 2.10)
9
9
–
–
Defined benefit plan liability
(22)
(17)
(36)
(54)
The amounts for the year ended March 31, 2024 and March 31, 2023 recognized in the Statement of Profit and Loss under employee
benefit expense are as follows:
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Service cost
280
249
30
23
Net interest on the net defined benefit liability / asset
(6)
(3)
1
1
Plan amendments
–
1
(28)
–
Net cost
274
247
3
24
Infosys Integrated Annual Report 2023-24
270
Standalone Financial Statements
The amounts for the year ended March 31, 2024 and March 31, 2023 recognized in the statement of other comprehensive
income are as follows:
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Remeasurements of the net defined benefit liability / (asset)
Actuarial (gains) / losses
22
(65)
18
(76)
(Return) / loss on plan assets excluding amounts included in the net
interest on the net defined benefit liability / (asset)
(15)
(20)
(11)
46
7
(85)
7
(30)
The break-up of actuarial (gains) / losses for the year ended March 31, 2024 and March 31, 2023 is as follows:
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
(Gain) / loss from change in demographic assumptions
–
–
–
–
(Gain) / loss from change in financial assumptions
9
(54)
16
(82)
(Gain) / loss from change in experience assumptions
13
(11)
2
6
22
(65)
18
(76)
The weighted-average assumptions used to determine benefit obligations as at March 31, 2024 and March 31, 2023 are as follows:
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Discount rate (in %)(1)
7.0
7.1
1.5 - 3.4
1.8 - 3.4
Weighted average rate of increase in compensation levels (in %) (2)
6.0
6.0
1 - 3
1 - 3
Weighted average duration of defined benefit obligation (3)
5.8 years
5.9 years
12 years
12 years
The weighted-average assumptions used to determine net periodic benefit cost for the year ended March 31, 2024 and
March 31, 2023 are as follows:
(In %)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Discount rate
7.1
6.5
1.8 - 3.2
0.4 - 1.3
Weighted average rate of increase in compensation levels
6.0
6.0
1-3
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.
Infosys Integrated Annual Report 2023-24
271
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 diversified and provide for guaranteed
interest rates arrangements.
Actual return on assets (including remeasurement) of the gratuity
plan for the year ended March 31, 2024 and March 31, 2023 were
₹125 crore and ₹111 crore, respectively and for the pension plan
were ₹21 crore and (₹44) 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, 2024 and March 31, 2023 are as follows:
(In %)
Particulars
Pension
As at March 31,
2024
2023
Equity
34
34
Bonds
32
32
Real estate / property
26
26
Cash and cash equivalents
1
1
Other
7
7
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
by 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
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 :
(In ₹ crore)
Impact from
As at March 31, 2024
Gratuity
Pension
1% point
increase /
decrease
0.5% point
increase /
decrease
Discount rate
102
28
Weighted average rate of increase in
compensation level
93
4
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 ₹300 crore to gratuity and
₹27 crore to pension during the fiscal 2025.
The maturity profile of defined benefit obligation is as follows:
(In ₹ crore)
Particulars
Gratuity
Pension
Within 1 year
244
43
1-2 years
250
44
2-3 years
284
44
3-4 years
365
45
4-5 years
396
45
5-10 years
1,963
217
Infosys Integrated Annual Report 2023-24
272
Standalone Financial Statements
b. Superannuation
The Company contributed ₹493 crore and ₹468 crore to the
Superannuation trust during the year ended March 31, 2024 and
March 31, 2023, 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, 2024 and
March 31, 2023 is as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Change in benefit obligations
Benefit obligations at the beginning
10,527
9,304
Service cost
880
814
Employee contribution
1,652
1,689
Interest expense
764
625
Actuarial (gains) / loss
96
(82)
Benefits paid
(2,040)
(1,823)
Benefit obligations at the end
11,879
10,527
Change in plan assets
Fair value of plan assets at the
beginning
10,184
9,058
Interest income
740
609
Remeasurements – Return on plan
assets excluding amounts included in
interest income
234
(186)
Employer contribution
1,042
837
Employee contribution
1,652
1,689
Benefits paid
(2,040)
(1,823)
Fair value of plan assets at the end
11,812
10,184
Net liability
(67)
(343)
Amount for the year ended March 31, 2024 and
March 31, 2023 recognized in the statement of other
comprehensive income is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Service cost
880
814
Net interest on the net defined
benefit liability / asset
24
16
Net providend fund cost
904
830
Amount for the year ended March 31, 2024 and
March 31, 2023 recognized in the statement of other
comprehensive income is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Remeasurements of the net
defined benefit liability / (asset)
Actuarial (gains) / losses
96
(82)
(Return) / loss on plan assets
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)
(234)
186
(138)
104
The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows:
Particulars
As at March 31,
2024
2023
Government of India (GoI) bond yield (1)
7.00%
7.10%
Expected rate of return on plan assets
8.20%
8.15%
Remaining term to maturity of
portfolio
6 years
6 years
Expected guaranteed interest rate
8.25%
8.15%
(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.
Infosys Integrated Annual Report 2023-24
273
The breakup of the plan assets into various categories as at
March 31, 2024 and March 31, 2023 is as follows:
(In %)
Particulars
As at March 31,
2024
2023
Central and state government bonds
60
60
Public sector undertakings and
Private sector bonds
30
33
Others
10
7
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, 2024, the defined benefit obligation would
be affected by approximately ₹66 crore and ₹110 crore on
account of 0.25% increase / decrease in the expected rate of
return on plan assets.
The Company contributed ₹1,100 crore and ₹1,053 crore to the
provident fund during the year ended March 31, 2024 and
March 31, 2023, 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:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Salaries and bonus(1)
63,274
60,973
Defined contribution plans
493
468
Defined benefit plans
1,372
1,323
65,139
62,764
(1) Includes employee stock compensation expense of ₹575 crore and ₹460
crore for the year ended March 31, 2024 and March 31, 2023, respectively
(Refer to Note 2.12).
2.22 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 Company by the
weighted average number of equity shares outstanding during
the period. Diluted earnings per equity share is computed by
dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also
the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued at
fair value (i.e. the average market value of the outstanding equity
shares). Dilutive potential equity shares are deemed converted
as at the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently
for each period presented.
The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes
effected prior to the approval of the financial statements by
the Board of Directors.
A reconciliation of the equity shares used in the computation of
basic and diluted earnings per equity share is as follows:
Particulars
Year ended March 31,
2024
2023
Basic earnings per equity share
– weighted average number of
equity shares outstanding
415,00,99,796
419,38,13,881
Effect of dilutive common
equivalent shares – share
options outstanding
38,94,828
44,20,497
Diluted earnings per equity
share – weighted average
number of equity shares and
common equivalent shares
outstanding
415,39,94,624
419,82,34,378
For the year ended March 31, 2024 and March 31, 2023, there
were 47,395 and 271 options to purchase equity shares, which
had an anti-dilutive effect.
Infosys Integrated Annual Report 2023-24
274
Standalone 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.
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Contingent liabilities:
Claims against the Company, not acknowledged as debts(1)
2,649
4,316
[Amount paid to statutory authorities ₹8,283 crore (₹6,115 crore)]
Commitments:
Estimated amount of contracts remaining to be executed on capital contracts and not provided for
(net of advances and deposits)(2)
688
824
Other Commitments*
5
8
* Uncalled capital pertaining to investments
(1) As at March 31, 2024 and March 31, 2023, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹2,260 crore
and ₹3,953 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 issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as
liable for withholding of taxes, among others. 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 financial position and results of
operations.
Amount paid to statutory authorities against the tax claims amounted to ₹8,273 crore and ₹6,105 crore as at March 31, 2024 and March 31, 2023, respectively.
(2) Capital contracts primarily comprises of 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 such ordinary course 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
(In %)
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
Infosys Technologies (China) Co. Limited (Infosys China)(1)
China
100
100
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)(1)
Mexico
100
100
Infosys Technologies (Sweden) AB (Infosys Sweden)(1)
Sweden
100
100
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)(1)
China
100
100
EdgeVerve Systems Limited (EdgeVerve)(1)
India
100
100
Infosys Austria GmbH(1)
Austria
100
100
Skava Systems Private Limited (Skava Systems)(1)(22)
India
100
100
Infosys Chile SpA(1)
Chile
100
100
Infosys Arabia Limited(2)(22)
Saudi Arabia
70
70
Infosys Consulting Ltda.(1)
Brazil
100
100
Infosys Luxembourg S.a.r.l(1)
Luxembourg
100
100
Infosys Americas Inc. (Infosys Americas)(1)(30)
US
–
100
Infosys Consulting S.R.L.(1)(19)
Argentina
100
100
Infosys Integrated Annual Report 2023-24
275
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
Infosys Consulting S.R.L.(1)
Romania
100
100
Infosys Limited Bulgaria EOOD(1)
Bulgaria
100
100
Infosys Turkey Bilgi Teknolojileri Limited Sirketi(1)
Turkey
100
100
Infosys Germany Holding Gmbh(1)
Germany
100
100
Infosys Automotive and Mobility GmbH & Co. KG(1)
Germany
100
100
Infosys Green Forum(1)
India
100
100
Infosys Business Solutions LLC(1)
Qatar
100
100
WongDoody Inc. (1)
US
100
100
Danske IT and Support Services India Private Limited (Danske IT) (1)(32)
India
100
–
Infosys Public Services, Inc. USA (Infosys Public Services)(1)
US
100
100
Infosys Public Services Canada Inc. (12)(23)
Canada
100
100
Infosys BPM Limited(1)
India
100
100
Infosys BPM UK Limited(3)
UK
100
100
Infosys (Czech Republic) Limited s.r.o.(3)
Czech Republic
100
100
Infosys Poland Sp z.o.o(3)
Poland
100
100
Infosys McCamish Systems LLC(3)
US
100
100
Portland Group Pty Ltd(3)
Australia
100
100
Infosys BPO Americas LLC.(3)
US
100
100
Infosys BPM Canada Inc (3)(31)(36)
Canada
–
–
Panaya Inc. (Panaya)(1)
US
100
100
Panaya Ltd.(4)
Israel
100
100
Panaya Germany GmbH (4)(27)
Germany
100
100
Brilliant Basics Holdings Limited (Brilliant Basics)(1)(22)
UK
100
100
Brilliant Basics Limited (5)(22)
UK
100
100
Infosys Consulting Holding AG (1)
Switzerland
100
100
Infosys Management Consulting Pty Limited(6)
Australia
100
100
Infosys Consulting AG(6)
Switzerland
100
100
Infosys Consulting GmbH(6)
Germany
100
100
Infosys Consulting SAS(6)
France
100
100
Infy Consulting B.V.(6)
The Netherlands
100
100
Infosys Consulting (Belgium) NV(6)
Belgium
100
100
Infy Consulting Company Ltd(6)
UK
100
100
GuideVision s.r.o.(7)
Czech Republic
100
100
GuideVision Deutschland GmbH(8)
Germany
100
100
GuideVision Suomi Oy(8)
Finland
100
100
GuideVision Magyarország Kft(8)
Hungary
100
100
GuideVision Polska Sp. z.o.o(8)
Poland
100
100
GuideVision UK Ltd(8)(22)
UK
100
100
Infosys Nova Holdings LLC. (Infosys Nova)(1)
US
100
100
Outbox systems Inc. dba Simplus (US)(9)
US
100
100
Simplus ANZ Pty Ltd.(10)
Australia
100
100
Simplus Australia Pty Ltd(11)
Australia
100
100
Simplus Philippines, Inc.(10)
Philippines
100
100
Kaleidoscope Animations, Inc.(9)
US
100
100
Infosys Integrated Annual Report 2023-24
276
Standalone Financial Statements
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
Kaleidoscope Prototyping LLC(18)(34)
US
–
100
Blue Acorn iCi Inc (formerly Beringer Commerce Inc)(9)
US
100
100
Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.)(1)
Singapore
100
100
Infosys Financial Services GmbH. (formerly Panaya GmbH) (13)(29)
Germany
100
100
Infosys South Africa (Pty) Ltd(13)
South Africa
100
100
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.)(13)
Malaysia
100
100
Infosys Middle East FZ LLC (13)
Dubai
100
100
Infosys Norway (13)(28)
Norway
100
100
Infosys Compaz Pte. Ltd (14)
Singapore
60
60
HIPUS Co., Ltd(14)
Japan
81
81
Fluido Oy (13)
Finland
100
100
Fluido Sweden AB (15)
Sweden
100
100
Fluido Norway A/S(15)
Norway
100
100
Fluido Denmark A/S(15)
Denmark
100
100
Fluido Slovakia s.r.o(15)
Slovakia
100
100
Infosys Fluido UK, Ltd.(15)
UK
100
100
Infosys Fluido Ireland, Ltd.(16)
Ireland
100
100
Stater N.V.(14)
The Netherlands
75
75
Stater Nederland B.V.(17)
The Netherlands
75
75
Stater XXL B.V.(17)
The Netherlands
75
75
HypoCasso B.V.(17)
The Netherlands
75
75
Stater Participations B.V.(35)
The Netherlands
–
75
Stater Belgium N.V./S.A.(17)(35)
Belgium
75
75
Stater Gmbh(17)
Germany
75
75
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))(13)
Germany
100
100
WongDoody Gmbh (formerly known as oddity GmbH) (20)
Germany
100
100
WongDoody (Shanghai) Co. Limited (formerly known as oddity (Shanghai) Co., Ltd.) (21)
China
100
100
WongDoody limited (Taipei) (formerly known as oddity Limited (Taipei)) (21)
Taiwan
100
100
oddity space GmbH (20)(33)
Germany
–
100
oddity jungle GmbH (20)(33)
Germany
–
100
oddity code GmbH (20)(33)
Germany
–
100
WongDoody d.o.o (formerly known as oddity code d.o.o) (21)(33)
Serbia
100
100
oddity waves GmbH (20)(33)
Germany
–
100
oddity group services GmbH (20)(33)
Germany
–
100
BASE life science A/S (13)(24)
Denmark
100
100
BASE life science AG (25)
Switzerland
100
100
BASE life science GmbH (25)
Germany
100
100
BASE life science S.A.S (25)
France
100
100
BASE life science Ltd. (25)
UK
100
100
BASE life science S.r.l. (25)
Italy
100
100
Innovisor Inc.(25)
US
100
100
BASE life science Inc.(25)
US
100
100
BASE life science S.L.(25)(26)
Spain
100
100
Infosys Integrated Annual Report 2023-24
277
(1) Wholly-owned subsidiary of Infosys Limited
(2) Majority-owned and controlled subsidiary of Infosys Limited
(3) Wholly-owned subsidiary of Infosys BPM Limited
(4) Wholly-owned subsidiary of Panaya Inc.
(5) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(6) Wholly-owned subsidiary of Infosys Consulting Holding AG
(7) Wholly-owned subsidiary of Infy Consulting Company Limited
(8) Wholly-owned subsidiary of GuideVision s.r.o.
(9) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(10) Wholly-owned subsidiary of Outbox systems Inc. dba Simplus (US)
(11) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(12) Wholly-owned subsidiary of Infosys Public Services, Inc.
(13) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.)
(14) Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.)
(15) Wholly-owned subsidiary of Fluido Oy
(16) Wholly-owned subsidiary of Infosys Fluido UK, Ltd.
(17) Wholly-owned subsidiary of Stater N.V.
(18) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(19) 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.
(20) 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 WongDoody Gmbh (formerly known as oddity GmbH).
(21) Wholly-owned subsidiary of WongDoody Gmbh (formerly known as oddity GmbH)
(22) Under liquidation
(23) Incorporated on July 8, 2022
(24) 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.
(25) Wholly-owned subsidiary of BASE life science A/S
(26) Incorporated on September 6, 2022
(27) Incorporated effective December 15, 2022
(28) Incorporated effective September 22, 2022.
(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) Liquidated effective July 14, 2023
(31) Incorporated on August 11, 2023
(32) On September 1, 2023, Infosys Limited acquired 100% of voting interests in Danske IT and Support Services India Private Limited (Danske IT). Danske IT
renamed as Idunn Information Technology Private Limited from April 1, 2024.
(33) On September 29, 2023, oddity space GmbH, oddity waves GmbH, oddity jungle GmbH, oddity group services GmbH and oddity code GmbH merged into
WongDoody GmbH and oddity code d.o.o which was formerly a subsidiary of oddity code Gmbh has become a subsidiary of WongDoody Gmbh (formerly
known as oddity GmbH).
(34) Kaleidoscope Prototyping LLC, a wholly-owned subsidiary of Kaleidoscope Animations is liquidated effective November 1, 2023.
(35) On November 24, 2023, Stater Participations B.V (wholly-owned subsidiary of Stater N.V.) merged with Stater N.V. and Stater Belgium N.V./S.A which was
formerly a wholly-owned subsidiary of Stater Participations B.V. became a wholly-owned subsidiary of Stater N.V.
(36) On March 15, 2024, Infosys BPM Canada Inc., a wholly-owned subsidiary of Infosys BPM Limited got dissolved.
Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
Infosys Integrated Annual Report 2023-24
278
Standalone Financial Statements
List of other related party
Particulars
Country
Nature of relationship
Infosys Limited Employees' Gratuity Fund Trust
India
Post-employment benefit plan of Infosys Limited
Infosys Limited Employees' Provident Fund Trust
India
Post-employment benefit plan of Infosys Limited
Infosys Limited Employees' Superannuation Fund Trust
India
Post-employment benefit plan of Infosys Limited
Infosys Employees Welfare Trust
India
Controlled trust
Infosys Employee Benefits Trust
India
Controlled trust
Infosys Science Foundation
India
Controlled trust
Infosys Expanded Stock Ownership Trust
India
Controlled trust
Infosys Foundation
India
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
Salil Parekh, Chief Executive Officer and Managing Director
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 (retired as independent director effective April 19, 2023)
Bobby Parikh
Chitra Nayak
Govind Iyer (appointed as an independent director effective January 12, 2023)
Helene Auriol Potier (appointed as independent director effective May 26, 2023)
Nitin Paranjpe (appointed as an additional and independent director effective January 1, 2024)
Executive Officers
Inderpreet Sawhney, Group General Counsel and Chief Compliance Officer
Jayesh Sanghrajka (appointed as Chief Financial Officer effective April 1, 2024)
Nilanjan Roy (resigned as Chief Financial Officer of the Company effective March 31, 2024)
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 was on leave till June 9, 2023 which was his last date with the Company)
Ravi Kumar S (resigned as President effective October 11, 2022)
Company Secretary
A. G. S. Manikantha
Infosys Integrated Annual Report 2023-24
279
The details of amounts due to or due from related parties as at
March 31, 2024 and March 31, 2023 are as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Trade receivables
BASE life science A/S
3
1
BASE life science AG
2
–
Infosys China
2
1
Infosys Mexico
3
2
Infosys BPM Limited
15
10
Infy Consulting Company Limited
12
11
Infosys Public Services
55
90
Infosys Public Services Canada Inc.
10
–
Infosys Sweden
7
6
Fluido Oy
3
1
Simplus Australia Pty Ltd
1
1
Infosys McCamish Systems LLC
45
66
Panaya Ltd
2
2
Infosys Compaz Pte Ltd
55
61
Stater Nederland B.V.
1
7
Outbox systems Inc. dba Simplus (US)
–
1
Infosys Luxembourg S.a.r.l
25
47
Infosys Chile SpA
4
1
Infosys South Africa (Pty) Ltd
–
5
HIPUS Co., Ltd
1
–
Infosys Turkey Bilgi Teknolojileri Limited
Sirketi
3
–
Infosys Automotive and Mobility GmbH
& Co. KG
–
283
Infosys Middle East FZ LLC
10
15
259
611
Loans
Infosys Turkey Bilgi Teknolojileri Limited
Sirketi (1)
–
43
–
43
Prepaid expense and other assets
Panaya Ltd
151
193
GuideVision, s.r.o.
1
1
Infosys Green Forum
3
4
155
198
Other financial assets
Infosys BPM Limited
19
13
Infosys Consulting GmbH
5
3
Infosys China
31
20
Infosys Shanghai
6
4
Infy Consulting Company Limited
31
12
Particulars
As at March 31,
2024
2023
Infosys Management Consulting Pty Ltd
2
1
Infosys Consulting AG
6
3
Infosys Consulting Ltda
1
1
Infy Consulting B.V.
3
2
Fluido Oy
1
1
Panaya Ltd
–
1
Infosys McCamish Systems LLC
68
32
Infosys Singapore Pte. Ltd
1
1
Infosys Automotive and Mobility GmbH
& Co. KG
1,815
925
Infosys Poland Sp. z.o.o
7
3
Fluido Denmark A/S
2
1
Infosys Consulting S.R.L. (Romania)
3
1
Infosys Consulting (Belgium) NV
4
3
WongDoody, Inc
6
3
Infosys Public Services
9
6
Simplus Philippines, Inc.
1
1
Outbox systems Inc. dba Simplus (US)
2
1
Infosys Luxembourg S.a.r.l
2
2
Infosys Business Solutions LLC
2
1
Infosys Compaz PTE Ltd
1
1
Kaleidoscope Animations, Inc.
2
1
Portland Group Pty Ltd
2
1
GuideVision, s.r.o.
2
1
Infosys (Czech Republic) Limited s.r.o.
1
1
Danske IT
4
–
WongDoody GmbH (formerly known as
oddity GmbH)
1
–
Blue Acorn iCi Inc
2
–
Infosys Turkey Bilgi Teknolojileri Limited
Sirketi
2
–
Infosys Austria GMBH
2
–
Infosys Consulting S.R.L. (Argentina)
1
–
BASE life science A/S
1
–
Infosys Public Services Canada Inc.
1
–
Infosys Norway
1
–
Infosys Sweden
–
1
Infosys Middle East FZ LLC
1
1
HIPUS Co., Ltd
1
1
EdgeVerve
–
2
2,052
1,051
Unbilled revenues
EdgeVerve
101
107
Infosys Consulting Ltda
–
4
Portland Group Pty Ltd
–
2
Infosys Integrated Annual Report 2023-24
280
Standalone Financial Statements
Particulars
As at March 31,
2024
2023
Infosys Austria GmbH
–
2
Infy Consulting Company Limited
–
5
Infosys Consulting S.R.L. (Romania)
1
2
Infosys Sweden
–
1
Infosys China
–
10
Infosys Turkey Bilgi Teknolojileri Limited
Sirketi
–
3
Infosys Singapore Pte. Limited
–
6
Infosys McCamish Systems LLC
45
137
Infosys Mexico
–
3
Infosys Poland Sp. z.o.o
1
2
Stater Nederland B.V.
5
6
153
290
Trade payables
Infosys China
17
15
Infosys BPM Limited
135
136
Infosys (Czech Republic) Limited s.r.o.
33
26
Infosys Mexico
54
24
Infosys Sweden
98
57
Infosys Shanghai
14
13
Infosys Management Consulting Pty Ltd
29
19
Infosys Singapore Pte. Ltd
15
15
Infy Consulting Company Limited
165
149
Infosys (Malaysia) SDN. BHD. (formerly
Global Enterprise International (Malaysia)
Sdn. Bhd.)
13
5
Panaya Ltd
5
14
Infosys Public Services
1
1
Portland Group Pty Ltd
3
28
Infosys Chile SpA
3
4
Infosys Compaz Pte Ltd
2
2
Infosys Middle East FZ LLC
3
2
Infosys Poland Sp. z.o.o
34
24
Infosys Consulting S.R.L. (Romania)
25
19
Fluido Oy
6
6
oddity jungle GmbH
–
1
Fluido Sweden AB
5
6
EdgeVerve
2
1
WongDoody, Inc
63
3
Fluido Denmark A/S
1
2
Infosys Fluido UK Ltd
5
3
BASE life science AG
1
–
BASE life science GmbH
1
–
BASE life science Ltd.
2
–
WongDoody d.o.o
1
–
Particulars
As at March 31,
2024
2023
WongDoody GmbH (formerly known as
oddity GmbH)
2
–
BASE life science S.L.
1
–
Infosys Business Solutions LLC
3
–
Infosys South Africa (Pty) Ltd
4
–
Infosys Norway
6
–
Infosys McCamish Systems LLC
1
–
Infosys Automotive and Mobility GmbH
& Co. KG
–
61
Infosys Limited Bulgaria EOOD
6
4
WongDoody limited (Taipei) (formerly
known as oddity Limited (Taipei))
1
1
Infosys Consulting Ltda
17
11
BASE life science A/S
1
1
778
653
Other financial liabilities
Infosys BPM Limited
44
31
Infosys Consulting AG
–
1
Infosys Mexico
2
1
Infosys China
7
6
Infosys Shanghai
5
3
Infosys Norway
1
–
GuideVision Suomi Oy
–
1
Outbox systems Inc. dba Simplus (US)
27
33
GuideVision, s.r.o.
5
8
Simplus Australia Pty Ltd
9
7
Simplus Philippines, Inc.
4
3
GuideVision Polska Sp.z.o.o
1
1
Kaleidoscope Animations, Inc.
46
6
WongDoody, Inc
–
82
Infosys Public Services
5
10
GuideVision Magyarország Kft.
1
1
Infosys Consulting Ltda
1
–
Infosys Consulting AG
2
–
Infosys Singapore Pte. Limited
–
1
Infosys Automotive and Mobility GmbH
& Co. KG
162
155
Danske IT
16
–
Infy Consulting Company Limited
14
–
Infosys South Africa (Pty) Ltd
1
–
Infosys Sweden
4
–
Infosys Compaz PTE Ltd
1
–
Infosys McCamish Systems LLC
2
–
Infosys Green Forum
5
6
Infosys Consulting (Belgium) NV
4
4
Blue Acorn iCi Inc
35
46
Infosys Integrated Annual Report 2023-24
281
Particulars
As at March 31,
2024
2023
GuideVision Deutschland GmbH
–
1
Infosys Middle East FZ LLC
1
1
Infosys Luxembourg S.a.r.l
–
8
Infosys (Czech Republic) Limited s.r.o.
–
6
405
422
Accrued expenses
Infosys BPM Limited
29
30
29
30
(1) Previous year loan bearing interest rate of 7.45% and term of one year has
been converted into equity shares.
(In ₹ crore)
Particulars
Maximum amount
outstanding during the
Year ended March 31,
2024
2023
Loans and advances in the nature of
loans given to subsidiaries
Infosys Singapore Pte. Ltd
–
397
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
57
43
The details of the related parties transactions entered into by the
Company for the year ended March 31, 2024 and March 31, 2023 are
as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Capital transactions:
Financing transactions
Equity
Infosys Business Solutions LLC
–
8
Infosys Consulting S.R.L (Argentina)
–
2
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi (1)
41
7
Infosys America Inc.
(1)
–
Skava Systems
(59)
–
Infosys Luxembourg S.a.r.l
9
–
Danske IT
82
–
72
17
Preference share
Infosys Singapore Pte. Ltd
–
1,513
–
1513
Loans given
Infosys Singapore Pte. Ltd
–
389
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
–
38
–
427
Particulars
Year ended March 31,
2024
2023
Loans repaid
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
4
–
Infosys Singapore Pte. Ltd
–
393
4
393
Revenue transactions:
Purchase of services
Infosys China
198
183
Infosys Management Consulting Pty
Ltd
297
211
Infy Consulting Company Limited
1,914
1,608
Infosys Singapore Pte. Ltd
173
161
Portland Group Pty Ltd
33
92
Infosys (Czech Republic) Limited s.r.o.
360
294
Infosys BPM Limited
2,162
2,101
Infosys Sweden
99
56
Infosys Shanghai
179
149
Infosys Mexico
304
239
Infosys Public Services
6
6
Panaya Ltd
152
144
Infosys Poland Sp. z.o.o
287
209
Infosys Consulting S.R.L. (Romania)
278
244
Infosys Compaz Pte Ltd
19
25
Infosys Consulting Ltda
173
116
BASE life science A/S
12
2
Kaleidoscope Animations, Inc.
151
50
Infosys Chile SpA
40
34
Infosys Middle East FZ LLC
50
51
Fluido Oy
70
69
Fluido Sweden AB
55
58
Fluido Denmark A/S
14
25
Infosys McCamish Systems LLC
9
10
GuideVision, s.r.o.
93
67
GuideVision Polska Sp. z.o.o
9
8
Simplus Australia Pty Ltd
109
67
Simplus Philippines, Inc.
44
26
Outbox systems Inc. dba Simplus (US)
372
272
Infosys Fluido UK Ltd
57
39
Blue Acorn iCi Inc
461
384
GuideVision Deutschland GmbH
5
3
GuideVision Suomi Oy
5
7
GuideVision Magyarország Kft.
12
13
Infosys Limited Bulgaria EOOD
65
37
WongDoody, Inc
765
759
Infosys Integrated Annual Report 2023-24
282
Standalone Financial Statements
Particulars
Year ended March 31,
2024
2023
Infosys Luxembourg S.a.r.l
3
8
Infosys (Malaysia) SDN. BHD. (formerly
Global Enterprise International
(Malaysia) Sdn. Bhd.)
165
19
oddity space GmbH
2
4
WongDoody d.o.o (formerly known as
oddity code d.o.o)
6
1
oddity jungle GmbH
1
1
WongDoody limited (Taipei) (formerly
known as oddity Limited (Taipei))
4
1
Fluido Norway A/S
2
1
Infosys Consulting S.R.L. (Argentina)
2
1
Infosys South Africa (Pty) Ltd
29
–
Infosys Business Solutions LLC
3
–
WongDoody GmbH (formerly known
as oddity GmbH)
6
–
oddity code GmbH
1
–
BASE life science AG
17
–
BASE life science Ltd.
2
–
BASE life science GmbH
1
–
BASE life science SL
1
–
Infosys Norway
15
–
Danske IT
16
–
EdgeVerve
19
20
9,327
7,875
Purchase of shared services including
facilities and personnel
Infosys BPM Limited
7
36
WongDoody, Inc
11
63
WongDoody limited Taipei
1
–
Infosys Green Forum
36
36
Infosys China
–
1
Infosys (Czech Republic) Limited s.r.o.
4
6
Infosys Mexico
4
4
Outbox systems Inc. dba Simplus (US)
7
2
Infosys Consulting AG
2
3
Infosys Automotive and Mobility
GmbH & Co.KG
6
8
Portland Group Pty Ltd
1
–
WongDoody GmbH (formerly known
as oddity GmbH)
2
–
oddity Jungle GmbH
1
–
82
159
Particulars
Year ended March 31,
2024
2023
Interest income
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
2
2
Infosys Singapore Pte. Ltd
–
3
2
5
Guarantee income
Infosys Singapore Pte. Ltd
1
1
1
1
Dividend income
EdgeVerve
1,089
276
Infosys BPM Limited
1,887
1,187
2,976
1,463
Sale of services
Infosys China
13
24
Infosys Mexico
30
22
Infy Consulting Company Limited
74
53
Infosys BPM Limited
112
113
Fluido Oy
2
–
Infosys Luxembourg S.a.r.l
146
140
Infosys Middle East FZ LLC
26
26
Infosys McCamish Systems LLC
401
458
Infosys Sweden
91
70
Infosys Shanghai
1
4
EdgeVerve
961
822
Infosys Public Services
696
778
Outbox System,Inc. dba Simplus
–
1
Infosys Compaz Pte Ltd
176
141
Infosys Consulting Ltda
1
3
Simplus Australia Pty Ltd
5
4
Infosys Chile SpA
9
8
Infosys Automotive and Mobility
GmbH & Co. KG
1
70
Blue Acorn iCi Inc
2
3
Portland Group Pty Ltd
–
1
Infosys Consulting S.R.L. (Romania)
–
1
Infosys Singapore Pte. Ltd
1
–
BASE life science A/S
8
1
Infosys Poland Sp. z.o.o
–
2
Infosys Business Solutions LLC
1
1
Infosys South Africa (Pty) Ltd
1
5
HIPUS Co., Ltd
1
–
BASE life science AG
4
–
Infosys Public Services Canada Inc.
46
–
Stater Nederland B.V.
74
45
2,883
2,796
Infosys Integrated Annual Report 2023-24
283
Particulars
Year ended March 31,
2024
2023
Sale of shared services including
facilities and personnel
EdgeVerve
25
28
Panaya Ltd
8
7
Infy Consulting Company Limited
17
12
Infosys Public Services, Inc.
2
3
Infosys Public Services Canada Inc.
1
–
Infosys McCamish System LLC
27
25
Infosys China
12
7
Infosys Luxembourg S.a.r.l
4
4
Infosys Shanghai
1
1
Portland Group Pty. Limited
2
1
Infosys Poland Sp. z.o.o.
4
1
WongDoody, Inc.
2
2
WongDoody GmbH
1
–
Fluido Oy
1
1
Outbox systems Inc. dba Simplus (US)
1
2
Infosys BPO Americas LLC
1
1
Infosys Consulting AG
2
1
Infy Consulting B.V.
3
2
Infosys Consulting SAS
1
1
Infosys Consulting GmbH
2
1
HIPUS Co. Limited
1
1
Kaleidoscope Animations, Inc
1
1
Blue Acorn iCi Inc.
1
1
Particulars
Year ended March 31,
2024
2023
Infosys Automotive and Mobility
GmbH & Co.KG (2)
880
778
Infosys Business Solutions LLC
–
1
Infosys Green Forum
5
6
Infosys BPM Limited (3)
107
88
Infosys Management Consulting Pty
Ltd
2
–
Infosys Sweden
1
–
Infosys Mexico
2
–
Infosys (Czech Republic) Limited s.r.o.
2
–
Infosys Compaz PTE Ltd
1
–
Infosys Consulting Ltda
3
–
Infosys Austria GmbH
1
–
Infosys Consulting S.R.L. (Romania)
3
–
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi
2
–
1,129
976
Any other transaction
Infosys Foundation
369
321
369
321
(1) Previous year loan bearing interest rate of 7.45% and term of one year has
been converted into equity shares.
(2) Includes amounts netted off against respective expenses
(3) Includes sale of fixed assets of ₹6 crore for fiscal 2024 and ₹2 crore for
fiscal 2023
Refer to Note 2.5.1 for business transfer with wholly-owned subsidiaries
The Company’s related party transactions during the year ended March 31, 2024 and March 31, 2023 and outstanding balances as at
March 31, 2024 and March 31, 2023 are with its subsidiaries with whom the Company generally enters into transactions which are at arms
length and in the ordinary course of business.
Transactions with key management personnel
The table below describes the compensation to key management personnel which comprise directors and executive officers:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Salaries and other short term employee benefits to whole-time directors and executive officers(1)(2)
113
111
Commission and other benefits to non-executive / independent directors
17
16
Total
130
127
(1) Total employee stock compensation expense towards key management personnel for the year ended March 31, 2024 and March 31, 2023, includes a charge of
₹68 crore and ₹49 crore, respectively.
(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.
Infosys Integrated Annual Report 2023-24
284
Standalone 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 details of funds primarily utilized through the year on these activities which are specified in
Schedule VII of the Companies Act, 2013 are as follows:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
i) Amount required to be spent by the Company during the year
492
437
ii) Amount of expenditure incurred
453
392
iii) Shortfall at the end of the year*
39
45
iv) Total of previous years shortfall
7
9
v) Reason for shortfall
Pertains to ongoing projects
Pertains to ongoing projects
vi) Nature of CSR activities
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)
369
321
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
NA
NA
(1) For the year ended March 31, 2024, 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.
*
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.
Infosys Integrated Annual Report 2023-24
285
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 year ended March 31, 2024 and March 31, 2023 are as follows:
Particulars
Numerator
Denominator
March 31,
Variance (in %)
2024
2023
Current ratio
Current assets
Current liabilities
2.6
1.9
38.0#
Debt – Equity ratio
Total debt (represents
lease liabilities)(1)
Shareholder’s equity
0.0
0.1
(1.7)
Debt service coverage
ratio
Earnings available for
debt service(2)
Debt service(3)
36.4
37.7
(3.5)
Return on Equity
(ROE)
Net profits after taxes
Average shareholder’s
equity
36.6%
34.0%
2.6
Trade receivables
turnover ratio
Revenue
Average trade
receivable
5.6
6.2
(10.0)
Trade payables
turnover ratio
Purchases of services
and other expenses
Average trade
payables
12.7
11.7
8.9
Net capital turnover
ratio
Revenue
Working capital
2.9
5.0
(41.6)*
Net profit ratio
Net profit
Revenue
21.1%
18.8%
2.4
Return on Capital
Employed (ROCE)
Earning before
interest and taxes
Capital Employed(4)
42.0%
43.8%
(1.8)
Return on Investment
(ROI)
Unquoted
Income generated
from investments
Time-weighted
average investments
8.5%
5.7%
2.8
Quoted
Income generated
from investments
Time-weighted
average investments
7.2%
3.6%
3.6
(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
*
Working capital increase higher than the increase in revenue
#
Current ratio has increased due to increase in current assets
Infosys Integrated Annual Report 2023-24
286
Standalone Financial Statements
2.28 Function-wise classification of Statement of Profit and Loss
(In ₹ crore)
Particulars
Note
Year ended March 31,
2024
2023
Revenue from operations
2.18
1,28,933
1,24,014
Cost of sales
89,032
85,762
Gross profit
39,901
38,252
Operating expenses
Selling and marketing expenses
5,668
5,018
General and administration expenses
5,420
5,293
Total operating expenses
11,088
10,311
Operating profit
28,813
27,941
Interest expense
277
157
Other income, net
2.19
7,417
3,859
Profit before tax
35,953
31,643
Tax expense:
Current tax
2.17
7,306
8,167
Deferred tax
2.17
1,413
208
Profit for the year
27,234
23,268
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
128
(19)
Equity instruments through other comprehensive income, net
2.5 and 2.17
19
(6)
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
11
(7)
Fair value changes on investments, net
2.5
129
(236)
Total other comprehensive income / (loss), net of tax
287
(268)
Total comprehensive income for the year
27,521
23,000
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
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the
year ended March 31, 2024
Index
A Independent Auditor’s Report .................................................................................................................................................................................................288
B Consolidated Balance Sheet .....................................................................................................................................................................................................297
C Consolidated Statement of Profit and Loss..........................................................................................................................................................................299
D Consolidated Statement of Changes in Equity...................................................................................................................................................................301
E Consolidated Statement of Cash Flows.................................................................................................................................................................................306
F Overview and notes to the Consolidated Financial Statements..................................................................................................................................308
1. Overview
1.1 Company overview.................................................................................................................................................................................................................308
1.2 Basis of preparation of financial statements................................................................................................................................................................308
1.3 Basis of consolidation............................................................................................................................................................................................................308
1.4 Use of estimates and judgments.......................................................................................................................................................................................308
1.5 Critical accounting estimates and judgments.............................................................................................................................................................308
2. Notes to the Consolidated financial statements
2.1 Business combinations.........................................................................................................................................................................................................309
2.2 Property, plant and equipment.........................................................................................................................................................................................311
2.3 Capital work-in-progress (CWIP).......................................................................................................................................................................................313
2.4 Goodwill and other intangible assets.............................................................................................................................................................................314
2.5 Investments..............................................................................................................................................................................................................................316
2.6 Loans...........................................................................................................................................................................................................................................319
2.7 Other financial assets............................................................................................................................................................................................................319
2.8 Trade receivables....................................................................................................................................................................................................................320
2.9 Cash and cash equivalents..................................................................................................................................................................................................321
2.10 Other assets.............................................................................................................................................................................................................................321
2.11 Financial instruments...........................................................................................................................................................................................................321
2.12 Equity..........................................................................................................................................................................................................................................330
2.13 Other financial liabilities.....................................................................................................................................................................................................337
2.14 Trade payables........................................................................................................................................................................................................................337
2.15 Other liabilities........................................................................................................................................................................................................................338
2.16 Provisions..................................................................................................................................................................................................................................338
2.17 Income taxes............................................................................................................................................................................................................................338
2.18 Revenue from operations...................................................................................................................................................................................................342
2.19 Other income, net..................................................................................................................................................................................................................344
2.20 Expenses...................................................................................................................................................................................................................................345
2.21 Leases ........................................................................................................................................................................................................................................346
2.22 Employee benefits................................................................................................................................................................................................................348
2.23 Reconciliation of basic and diluted shares used in computing earnings per equity share.......................................................................353
2.24 Contingent liabilities and commitments......................................................................................................................................................................353
2.25 Related party transactions.................................................................................................................................................................................................355
2.26 Segment reporting...............................................................................................................................................................................................................363
2.27 Function-wise classification of Consolidated Statement of Profit and Loss...................................................................................................365
Infosys Integrated Annual Report 2023-24
288
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, 2024, 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 ended on that date, and notes to the financial statements,
including a summary of material 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, (“Ind AS”) and other accounting
principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2024 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 (“SAs”) 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.
Emphasis of Matter
As described in note 2.24.2 to the Consolidated Financial Statements, certain costs relating to possible damages or claims relating to a
cybersecurity incident in a subsidiary are indeterminable as at the date of this report because of reasons stated in the note. Our opinion
is not modified in respect of this matter.
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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
289
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 obtains control of the specified goods
or services before it is transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the
promise to provide the specified goods or services, 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 included the following:
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.
Infosys Integrated Annual Report 2023-24
290
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 included the following:
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts included the
following, among others:
•
We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application controls
pertaining to time recording, allocation and budgeting systems which prevents unauthorised changes to recording of
efforts incurred.
•
We selected a sample of fixed price contracts with customers measured using the percentage-of-completion method and
performed the following:
– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligation
by comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performance
obligations that have been fulfilled.
– Compared efforts or costs incurred with Group’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
291
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 accounting principles generally accepted in India, including Ind AS specified under section 133 of the Act. The
respective Boards of Directors/Trustees of the entities 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/Trustees of the entities 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 intends to liquidate their
respective entities or to cease operations, or have no realistic alternative but to do so.
The respective Boards of Directors/Trustees of the entities 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
Infosys Integrated Annual Report 2023-24
292
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an
opinion on the consolidated financial statements.
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 financial controls 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)
In our opinion, proper books of account as required by law maintained by the Group, including relevant records
relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our
examination of those books.
c)
The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income,
Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows dealt with by this Report
are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated
financial statements.
d)
In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under
section 133 of the Act.
e)
On the basis of the written representations received from the directors of the Company as on March 31, 2024 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, 2024 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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
293
ii)
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.
iii)
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company and its subsidiary companies incorporated in India.
iv)
(a) The respective Managements of the Company and its subsidiaries which are companies incorporated in India,
whose financial statements have been audited under the Act, have represented to us that, to the best of their
knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company or any of such subsidiaries to or in any other person or entity, 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.
Infosys Integrated Annual Report 2023-24
294
vi)
Based on our examination which included test checks, performed by us on the Company and its subsidiaries
incorporated in India, except for the instances mentioned below, have used accounting softwares for maintaining their
respective books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.
Further, during the course of audit, we have not come across any instance of the audit trail feature being tampered with.
The financial statements of two subsidiaries that are not material to the consolidated financial statements of the
Group, have not been audited under the provisions of the Act as of the date of this report. Therefore, we are unable to
comment on the reporting requirement under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 in respect
of these two subsidiaries.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule
11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements
for record retention is not applicable for the financial year ended March 31, 2024.
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 Auditor’s Reports on the financial statements of Company and
its subsidiaries as at and for the year ended March 31, 2024, included in the consolidated financial statements of the Group, we
report in respect of those companies where audits have been completed under section 143 of the Act, we have not reported any
qualifications or adverse remarks. In respect of the following company included in the consolidated financial statements of the
Company, whose audit under section 143 of the Act has not yet been completed, the CARO report as applicable in respect of this
subsidiary is not available.
Name of the Company
CIN
Relationship
Idunn Information Technology Private Limited (formerly known
as Danske IT and Support Services India Private Limited upto
March 31, 2024)
U74900KA2012PTC063260
Subsidiary
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Place: Bengaluru
Date: April 18, 2024
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 24039826BKCODL6319
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
295
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, 2024,
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.
Infosys Integrated Annual Report 2023-24
296
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 system with
reference to consolidated financial statements and such internal financial controls with reference to consolidated financial statements
were operating effectively as at March 31, 2024, 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)
Place: Bengaluru
Date: April 18, 2024
Sanjiv V. Pilgaonkar
Partner
(Membership No.039826)
UDIN: 24039826BKCODL6319
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
297
(In ₹ crore)
Particulars
Note
As at March 31,
2024
2023
Assets
Non-current assets
Property, plant and equipment
2.2
12,370
13,346
Right-of-use assets
2.21
6,552
6,882
Capital work-in-progress
2.3
293
288
Goodwill
2.4.1 and 2.1
7,303
7,248
Other intangible assets
2.4.2
1,397
1,749
Financial assets
Investments
2.5
11,708
12,569
Loans
2.6
34
39
Other financial assets
2.7
3,105
2,798
Deferred tax assets (net)
2.17
454
1,245
Income tax assets (net)
2.17
3,045
6,453
Other non-current assets
2.10
2,121
2,318
Total non-current assets
48,382
54,935
Current assets
Financial assets
Investments
2.5
12,915
6,909
Trade receivables
2.8
30,193
25,424
Cash and cash equivalents
2.9
14,786
12,173
Loans
2.6
248
289
Other financial assets
2.7
12,085
11,604
Income tax assets (net)
2.17
6,397
6
Other current assets
2.10
12,808
14,476
Total current assets
89,432
70,881
Total assets
1,37,814
1,25,816
Consolidated Balance Sheet
Infosys Integrated Annual Report 2023-24
298
Particulars
Note
As at March 31,
2024
2023
Equity and liabilities
Equity
Equity share capital
2.12
2,071
2,069
Other equity
86,045
73,338
Total equity attributable to equity holders of the Company
88,116
75,407
Non-controlling interests
345
388
Total equity
88,461
75,795
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities
2.21
6,400
7,057
Other financial liabilities
2.13
2,130
2,058
Deferred tax liabilities (net)
2.17
1,794
1,220
Other non-current liabilities
2.15
235
500
Total non-current liabilities
10,559
10,835
Current liabilities
Financial liabilities
Lease liabilities
2.21
1,959
1,242
Trade payables
2.14
3,956
3,865
Other financial liabilities
2.13
16,959
18,558
Other current liabilities
2.15
10,539
10,830
Provisions
2.16
1,796
1,307
Income tax liabilities (net)
2.17
3,585
3,384
Total current liabilities
38,794
39,186
Total equity and liabilities
1,37,814
1,25,816
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
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Consolidated Balance Sheet (contd.)
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
299
Consolidated Statement of Profit and Loss
(In ₹ crore, except equity share and per equity share data)
Particulars
Note
Year ended March 31,
2024
2023
Revenue from operations
2.18
153,670
146,767
Other income, net
2.19
4,711
2,701
Total income
1,58,381
1,49,468
Expenses
Employee benefit expenses
2.22
82,620
78,359
Cost of technical sub-contractors
12,232
14,062
Travel expenses
1,759
1,525
Cost of software packages and others
2.20
13,515
10,902
Communication expenses
677
713
Consultancy and professional charges
1,726
1,684
Depreciation and amortization expenses
2.2, 2.4.2 and 2.21
4,678
4,225
Finance cost
470
284
Other expenses
2.20
4,716
4,392
Total expenses
1,22,393
1,16,146
Profit before tax
35,988
33,322
Tax expense:
Current tax
2.17
8,390
9,287
Deferred tax
2.17
1,350
(73)
Profit for the year
26,248
24,108
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
2.22
120
8
Equity instruments through other comprehensive income, net
2.5
19
(7)
139
1
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
2.11
11
(7)
Exchange differences on translation of foreign operations
226
776
Fair value changes on investments, net
2.5
144
(256)
381
513
Total other comprehensive income / (loss), net of tax
520
514
Total comprehensive income for the year
26,768
24,622
Infosys Integrated Annual Report 2023-24
300
Particulars
Note
Year ended March 31,
2024
2023
Profit attributable to:
Owners of the Company
26,233
24,095
Non-controlling interests
15
13
26,248
24,108
Total comprehensive income attributable to:
Owners of the Company
26,754
24,598
Non-controlling interests
14
24
26,768
24,622
Earnings per equity share
Equity shares of par value ₹5 each
Basic (₹)
63.39
57.63
Diluted (₹)
63.29
57.54
Weighted average equity shares used in computing earnings per equity share
Basic (in shares)
2.23
413,85,68,090
418,08,97,857
Diluted (in shares)
2.23
414,46,80,425
418,77,31,070
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
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Consolidated Statement of Profit and Loss (contd.)
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
301
Consolidated Statement of Changes in Equity
(In ₹ crore)
Particulars
Equity
share
capital
(1)
Other equity
Total equity
attributable
to equity
holders of
the
Company
Non-
controlling
interest
Total
equity
Reserves and surplus
Other comprehensive income
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
Exchange
differences
on
translating
the
financial
statements
of a
foreign
operation
Effective
portion
of cash
flow
hedges
Other
items of other
comprehensive
income / (loss)
Balance as at
April 1, 2022
2,098
54
139
200
61,313
1,061
606
8,339
16
254
1,560
2
(292)
75,350
386 75,736
Impact on adoption
of amendment to
Ind AS 37#
–
–
–
–
(19)
–
–
–
–
–
–
–
–
(19)
–
(19)
2,098
54
139
200 61,294
1,061
606
8,339
16
254
1,560
2
(292)
75,331
386
75,717
Changes in equity
for the year ended
March 31, 2023
Profit for the year
–
–
–
–
24,095
–
–
–
–
–
–
–
–
24,095
13
24,108
Remeasurement
of the net defined
benefit liability /
asset, net*
(Refer to Note 2.22)
–
–
–
–
–
–
–
–
–
–
–
–
8
8
–
8
Equity instruments
through other
comprehensive
income, net* (Refer
to Notes 2.5 and 2.17)
–
–
–
–
–
–
–
–
–
(7)
–
–
–
(7)
–
(7)
Fair value changes
on derivatives
designated as cash
flow hedge, net*
(Refer to Note 2.11)
–
–
–
–
–
–
–
–
–
–
–
(7)
–
(7)
–
(7)
Exchange
differences on
translation of
foreign operations
–
–
–
–
–
–
–
–
–
–
765
–
–
765
11
776
Fair value changes
on investments,
net* (Refer to Notes
2.5 and 2.17)
–
–
–
–
–
–
–
–
–
–
–
–
(256)
(256)
–
(256)
Total
comprehensive
income for the
year
–
–
–
– 24,095
–
–
–
–
(7)
765
(7)
(248)
24,598
24 24,622
Shares issued
on exercise of
employee stock
options
(Refer to Note 2.12)
1
–
–
34
–
–
–
–
–
–
–
–
–
35
–
35
Infosys Integrated Annual Report 2023-24
302
Particulars
Equity
share
capital
(1)
Other equity
Total equity
attributable
to equity
holders of
the
Company
Non-
controlling
interest
Total
equity
Reserves and surplus
Other comprehensive income
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
Exchange
differences
on
translating
the
financial
statements
of a
foreign
operation
Effective
portion
of cash
flow
hedges
Other
items of other
comprehensive
income / (loss)
Employee stock
compensation
expense
(Refer to Note 2.12)
–
–
–
–
–
–
514
–
–
–
–
–
–
514
–
514
Transferred to legal
reserve
–
–
–
–
(3)
–
–
–
3
–
–
–
–
–
–
–
Transferred on
account of exercise
of stock options
–
–
–
291
–
–
(291)
–
–
–
–
–
–
–
–
–
Transfer on account
of options not
exercised
–
–
–
–
–
2
(2)
–
–
–
–
–
–
–
–
–
Buyback of equity
shares
(Refer to Note 2.12)**
(30)
–
–
(340)
(11,096)
–
–
–
–
–
–
–
–
(11,466)
–
(11,466)
Transaction costs
relating to buyback*
–
–
–
(19)
(5)
–
–
–
–
–
–
–
–
(24)
–
(24)
Amount transferred
to capital
redemption reserve
upon buyback
–
–
30
–
(21)
(9)
–
–
–
–
–
–
–
–
–
–
Income tax benefit
arising on exercise
of stock options
(Refer to Note 2.12)
–
–
–
–
–
–
51
–
–
–
–
–
–
51
–
51
Dividends (1)
–
–
–
–
(13,632)
–
–
–
–
–
–
–
–
(13,632)
–
(13,632)
Dividends paid to
non-controlling
interest of
subsidiary
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(22)
(22)
Transferred to
Special Economic
Zone Re-investment
reserve
–
–
–
–
(3,139)
–
–
3,139
–
–
–
–
–
–
–
–
Transferred from
Special Economic
Zone Re-investment
reserve on
utilization
–
–
–
–
1,464
–
–
(1,464)
–
–
–
–
–
–
–
–
Balance as at
March 31, 2023
2,069
54
169
166 58,957
1,054
878
10,014
19
247
2,325
(5)
(540)
75,407
388 75,795
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
303
Consolidated Statement of Changes in Equity (contd.)
(In ₹ crore)
Particulars
Equity share
capital (1)
Other equity
Total
equity
attributable
to equity
holders
of the
Company
Non-
controlling
interest
Total
equity
Reserves and surplus
Other comprehensive income
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
Exchange
differences
on
translating
the financial
statements
of a foreign
operation
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income /
(loss)
Balance as at April
1, 2023
2,069
54
169
166 58,957
1,054
878
10,014
19
247
2,325
(5)
(540)
75,407
388
75,795
Changes in equity
for the year ended
March 31, 2024
Profit for the year
–
–
–
–
26,233
–
–
–
–
–
–
–
–
26,233
15
26,248
Remeasurement
of the net defined
benefit liability /
asset, net*
(Refer to Note 2.22)
–
–
–
–
–
–
–
–
–
–
–
–
120
120
–
120
Equity instruments
through other
comprehensive
income, net* (Refer to
Notes 2.5 and 2.17)
–
–
–
–
–
–
–
–
–
19
–
–
–
19
–
19
Fair value changes
on derivatives
designated as cash
flow hedge, net*
(Refer to Note 2.11)
–
–
–
–
–
–
–
–
–
–
–
11
–
11
–
11
Exchange differences
on translation of
foreign operations
–
–
–
–
–
–
–
–
–
–
227
–
–
227
(1)
226
Fair value changes
on investments, net*
(Refer to Notes 2.5
and 2.17)
–
–
–
–
–
–
–
–
–
–
–
–
144
144
–
144
Total
comprehensive
income for the year
–
–
–
– 26,233
–
–
–
–
19
227
11
264
26,754
14
26,768
Shares issued on
exercise of employee
stock options
(Refer to Note 2.12)
2
–
–
3
–
–
–
–
–
–
–
–
–
5
–
5
Employee stock
compensation
expense
(Refer to Note 2.12)
–
–
–
–
–
–
639
–
–
–
–
–
–
639
–
639
Infosys Integrated Annual Report 2023-24
304
Particulars
Equity share
capital (1)
Other equity
Total
equity
attributable
to equity
holders
of the
Company
Non-
controlling
interest
Total
equity
Reserves and surplus
Other comprehensive income
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
Exchange
differences
on
translating
the financial
statements
of a foreign
operation
Effective
portion
of cash
flow
hedges
Other items
of other
comprehensive
income /
(loss)
Transferred on
account of exercise of
stock options
(Refer to Note 2.12)
–
–
–
447
–
–
(447)
–
–
–
–
–
–
–
–
–
Transferred on
account of options
not exercised
–
–
–
–
–
160
(160)
–
–
–
–
–
–
–
–
–
Income tax benefit
arising on exercise of
stock options
–
–
–
–
–
–
3
–
–
–
–
–
–
3
–
3
Transfer to legal
reserve
–
–
–
–
(3)
–
–
–
3
–
–
–
–
–
–
–
Dividends (1)
–
–
–
– (14,692)
–
–
–
–
–
–
–
–
(14,692)
– (14,692)
Dividends paid to
non-controlling
interest of subsidiary
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(39)
(39)
Buyback of shares
pertaining to non-
controlling interest of
subsidiary
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(18)
(18)
Transferred to Special
Economic Zone Re-
investment reserve
–
–
–
–
(2,957)
–
–
2,957
–
–
–
–
–
–
–
–
Transferred from
Special Economic
Zone Re-investment
reserve on utilization
–
–
–
–
867
–
–
(867)
–
–
–
–
–
–
–
–
Balance as at March
31, 2024
2,071
54
169
616 68,405
1,214
913
12,104
22
266
2,552
6
(276)
88,116
345
88,461
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
305
*
Net of tax
** Including tax on buyback of ₹2,166 crore for the year ended March 31, 2023.
#
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
for and on behalf of the Board of Directors of Infosys Limited
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Infosys Integrated Annual Report 2023-24
306
Consolidated 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 items 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.
(In ₹ crore)
Particulars
Note
Year ended March 31,
2024
2023
Cash flow from operating activities
Profit for the year
26,248
24,108
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense
2.17
9,740
9,214
Depreciation and amortization
2.2, 2.4.2 and 2.21
4,678
4,225
Interest and dividend income
2.19
(2,067)
(1,817)
Finance cost
470
284
Impairment loss recognized / (reversed) under expected credit loss model
121
283
Exchange differences on translation of assets and liabilities, net
76
161
Stock compensation expense
2.12
652
519
Provision for post-sales client support
75
120
Interest receivable on income tax refund
(1,934)
–
Other adjustments
1,464
508
Changes in assets and liabilities
Trade receivables and unbilled revenue
(2,667)
(7,076)
Loans, other financial assets and other assets
(1,172)
(3,108)
Trade payables
91
(279)
Other financial liabilities, other liabilities and provisions
(1,334)
4,119
Cash generated from operations
34,441
31,261
Income taxes paid
(9,231)
(8,794)
Net cash generated by operating activities
25,210
22,467
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles
(2,201)
(2,579)
Deposits placed with corporation
(847)
(996)
Redemption of deposits placed with Corporation
710
762
Interest and dividend received
1,768
1,525
Payment towards acquisition of business, net of cash acquired
–
(910)
Payment of contingent consideration pertaining to acquisition of business
(101)
(60)
Escrow and other deposits pertaining to buyback
–
(483)
Redemption of escrow and other deposits pertaining to buyback
–
483
Other receipts
128
71
Payments to acquire investments
Tax-free bonds and government bonds
–
(27)
Liquid mutual fund units
(66,191)
(70,631)
Target maturity fund units
–
(400)
Certificates of deposit
(8,509)
(10,348)
Commercial paper
(10,387)
(3,003)
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
307
Particulars
Note
Year ended March 31,
2024
2023
Non-convertible debentures
(1,526)
(249)
Government securities
–
(1,569)
Others
(14)
(20)
Proceeds on sale of Investments
Tax-free bonds and government bonds
150
221
Liquid mutual fund units
64,767
71,851
Certificates of deposit
9,205
10,404
Commercial paper
6,479
2,298
Non-convertible debentures
1,230
470
Government securities
304
1,882
Others
26
99
Net cash used in investing activities
(5,009)
(1,209)
Cash flows from financing activities
Payment of lease liabilities
(2,024)
(1,231)
Payment of dividends
(14,692)
(13,631)
Payment of dividend to non-controlling interest of subsidiary
(39)
(22)
Shares issued on exercise of employee stock options
5
35
Payment towards buyback of shares pertaining to non-controlling interest of subsidiary
(18)
-
Other receipts
-
132
Other payments
(736)
(479)
Buyback of equity shares including transaction cost and tax on buyback
–
(11,499)
Net cash used in financing activities
(17,504)
(26,695)
Net increase / (decrease) in cash and cash equivalents
2,697
(5,437)
Effect of exchange rate changes on cash and cash equivalents
(84)
138
Cash and cash equivalents at the beginning of the year
2.9
12,173
17,472
Cash and cash equivalents at the end of the year
2.9
14,786
12,173
Supplementary information:
Restricted cash balance
2.9
348
362
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
D. Sundaram
Lead Independent Director
Salil Parekh
Chief Executive Officer
and Managing Director
Bobby Parikh
Director
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
Consolidated Statement of Cash Flows (contd.)
Infosys Integrated Annual Report 2023-24
308
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 18, 2024.
1.2 Basis of preparation of financial statements
These Consolidated 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. The material
accounting policy information used in preparation of the
audited Consolidated financial statements have been discussed in
the respective notes.
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
Overview and notes to the Consolidated Financial Statements
returns by using its power over the entity. Power is demonstrated
through existing rights that give the ability to direct relevant
activities, those which significantly affect the entity's returns.
Subsidiaries are consolidated from the date control commences
until the date control ceases.
The financial statements of the Group companies are
consolidated on a line-by-line basis and intra-group balances
and transactions including unrealized gain / loss from such
transactions are eliminated upon consolidation. These financial
statements are prepared by applying uniform accounting policies
in use at the Group. Non-controlling interests which represent
part of the net profit or loss and net assets of subsidiaries
that are not, directly or indirectly, owned or controlled by the
Company, are excluded.
Refer to Note 2.25 for the list of subsidiaries and controlled
trusts of the Company.
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 Consolidated financial
statements and reported amounts of revenues and expenses
during the period. The application of accounting policies that
require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these
financial statements have been disclosed in Note 1.5. 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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
309
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
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 obtains control of the specified goods or
services before they are transferred to the customer. The Group
considers whether it is primarily responsible for fulfilling the
promise to provide the specified goods or services, inventory
risk, pricing discretion and other factors to determine whether it
controls the specified goods or services 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.
Also, 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 us to fair value
identifiable intangible assets and contingent consideration
to ascertain the net 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 management (Refer to
Note 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. Also, refer to Note 2.2.
e. Impairment of goodwill
Goodwill is tested for impairment on an annual basis and
whenever there is an indication that the recoverable amount of a
Cash Generating Unit (CGU) is less than its carrying amount. For
the impairment test, goodwill is allocated to the CGU or groups
of CGUs which benefit from the synergies of the acquisition and
which represent the lowest level at which goodwill is monitored
for internal management purposes.
The recoverable amount of CGUs is determined based on higher
of value-in-use and fair value less cost to sell. Key assumptions
in the cash flow projections are prepared based on current
economic conditions and comprises estimated long-term growth
rates, weighted average cost of capital and estimated operating
margins. Also, refer to Note 2.4.1.
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.
Infosys Integrated Annual Report 2023-24
310
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.
Acquisitions during the year ended March 31, 2023
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 is allocated to assets acquired and liabilities
assumed based upon determination of fair values at the dates of
acquisition is as follows :
(In ₹ crore)
Component
Acquiree's
carrying
amount
Fair value
adjustments
Purchase
price
allocated
Net assets(1)
103
–
103
Intangible assets –
Customer contracts
and relationships
–
274
274
Vendor relationships
–
30
30
Brand
–
24
24
Deferred tax
liabilities on
intangible assets
–
(80)
(80)
Total
103
248
351
Goodwill
630
Total purchase price
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.
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%. As of March 31, 2024, the contingent
consideration was fully paid.
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, 2024, the amounts
are fully 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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
311
Proposed acquisitions
On January 11, 2024, Infosys Limited entered into a definitive
agreement to acquire 100% of the equity share capital in InSemi
Technology Services Private Limited, a semiconductor design
services company headquartered in India, for a consideration
including earn-outs, and management incentives and retention
bonuses totaling up to ₹280 crore (approximately $34 million),
subject to customary closing adjustments.
On April 18, 2024, Infosys Germany GmBH, a wholly-owned step
down subsidiary of Infosys Limited, entered into a definitive
agreement to acquire 100% of the equity share capital in in-tech
Holding GmbH, leading provider of Engineering R&D services
headquartered in Germany, for a consideration including earn-
outs amounting up to EUR 450 million (approximately
₹4,045 crore), subject to customary closing adjustments.
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)
22-25 years
Plant and machinery (1)(2)
5 years
Office equipment
5 years
Computer equipment (1)
3-5 years
Furniture and fixtures (1)
5 years
Vehicles(1)
5 years
Leasehold improvements
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.
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 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.
Infosys Integrated Annual Report 2023-24
312
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2024 are as follows :
(In ₹ crore)
Particulars
Land –
Freehold
Buildings (1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and
fixtures
Leasehold
improvements
Vehicles
Total
Gross carrying
value as at
April 1, 2023
1,431
11,562
3,302
1,482
8,519
2,303
1,445
45
30,089
Additions
1
300
193
106
931
121
108
1
1,761
Deletions*
–
(55)
(64)
(60)
(846)
(99)
(102)
(1)
(1,227)
Translation
difference
–
(37)
(3)
–
7
1
(4)
–
(36)
Gross carrying
value as at March
31, 2024
1,432
11,770
3,428
1,528
8,611
2,326
1,447
45
30,587
Accumulated
depreciation as
at April 1, 2023
–
(4,535)
(2,437)
(1,198)
(5,826)
(1,675)
(1,032)
(40)
(16,743)
Depreciation
–
(450)
(259)
(130)
(1,387)
(250)
(206)
(3)
(2,685)
Accumulated
depreciation
on deletions*
–
55
64
59
836
89
97
1
1,201
Translation
difference
–
9
2
–
(3)
(1)
3
–
10
Accumulated
depreciation as
at March 31, 2024
–
(4,921)
(2,630)
(1,269)
(6,380)
(1,837)
(1,138)
(42)
(18,217)
Carrying value as
at April 1, 2023
1,431
7,027
865
284
2,693
628
413
5
13,346
Carrying value as
at March 31, 2024
1,432
6,849
798
259
2,231
489
309
3
12,370
*
During the year ended March 31, 2024, certain assets which were not in use having gross book value of ₹775 crore (net book value: Nil) were retired.
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2023 were as follows :
(In ₹ crore)
Particulars
Land –
Freehold
Buildings (1)
Plant and
machinery
Office
equipment
Computer
equipment
Furniture
and
fixtures
Leasehold
improvements
Vehicles
Total
Gross carrying
value as at
April 1, 2022
1,431
11,224
3,210
1,427
8,527
2,278
1,234
44
29,375
Additions – Business
Combination
(Refer to Note 2.1)
–
–
–
5
6
1
2
–
14
Additions
2
337
273
122
1,510
364
220
2
2,830
Deletions*
(2)
–
(182)
(76)
(1,563)
(348)
(25)
(1)
(2,197)
Translation
difference
–
1
1
4
39
8
14
–
67
Gross carrying
value as a
March 31, 2023
1,431
11,562
3,302
1,482
8,519
2,303
1,445
45
30,089
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
313
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, 2022
–
(4,100)
(2,344)
(1,150)
(6,034)
(1,779)
(856)
(37)
(16,300)
Depreciation
–
(434)
(273)
(121)
(1,322)
(236)
(187)
(4)
(2,577)
Accumulated
depreciation on
deletions*
–
–
181
76
1,556
347
21
1
2,182
Translation
difference
–
(1)
(1)
(3)
(26)
(7)
(10)
–
(48)
Accumulated
depreciation as at
March 31, 2023
–
(4,535)
(2,437)
(1,198)
(5,826)
(1,675)
(1,032)
(40)
(16,743)
Carrying value as at
April 1, 2022
1,431
7,124
866
277
2,493
499
378
7
13,075
Carrying value as at
March 31, 2023
1,431
7,027
865
284
2,693
628
413
5
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.
(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.
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required
to transfer its CSR capital assets installed prior to January 2021. Towards this the Company had incorporated a subsidiary ‘Infosys
Green Forum’ (IGF) under Section 8 of the Companies Act, 2013. During the year ended March 31, 2022, the Company had completed
the transfer of assets upon obtaining the required approvals from regulatory authorities, as applicable. During March 31, 2024, the
application filed by IGF for registration u/s.12AB of the Income-tax Act was rejected and registration cancelled. IGF is in the process of
challenging the rejection order.
2.3 Capital work-in-progress (CWIP)
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Capital work-in-progress
293
288
Total capital work-in-progress
293
288
The capital work-in-progress ageing schedule for the year ended March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Amount in CWIP for a period of
Less than 1 year
1-2 years
2-3 years
More than 3 years
Total
Projects in progress
259
22
1
11
293
235
21
12
20
288
Total capital work-in-progress
259
22
1
11
293
235
21
12
20
288
Infosys Integrated Annual Report 2023-24
314
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, 2024 and March 31, 2023 are as follows :
(In ₹ crore)
Particulars
To be completed in
Less than 1 year
1-2 years
2-3 years
More than 3 years
Total
Projects in progress
KL-SP-SDB1
–
–
–
–
–
114
–
–
114
BN-SP-MET
–
–
–
–
–
20
–
–
–
20
Total capital work-in-progress*
–
–
–
–
–
134
–
–
–
134
* 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.
A summary of changes in the carrying amount of goodwill
is as follows :
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Carrying value at the beginning
7,248
6,195
Goodwill on acquisitions
(Refer to Note 2.1)
–
630
Translation differences
55
423
Carrying value at the end
7,303
7,248
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, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Segment
As at March 31,
2024
2023
Financial services
1,476
1,465
Retail
939
929
Communication
675
668
Energy, Utilities, Resources and
Services
1,160
1,152
Manufacturing
578
573
Life Sciences
951
943
5,779
5,730
Operating segments without
significant goodwill
552
559
Total
6,331
6,289
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
315
The goodwill pertaining to Panaya amounting to ₹972 crore and
₹959 crore as at March 31, 2024 and March 31, 2023, 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 :
(In %)
Particulars
As at March 31,
2024
2023
Long-term growth rate
7-10
8-10
Operating margins
19-21
19-21
Discount rate
13
13
The above discount rate is based on the Weighted Average Cost
of Capital (WACC) of the Company. As at March 31, 2024, 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 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, 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, 2024 are as follows :
(In ₹ crore)
Particulars
Customer-
related
Software-
related
Intellectual
property
rights-
related
Brand or
trademark-
related
Others*
Total
Gross carrying value as at April 1, 2023
2,507
1,031
1
346
774
4,659
Additions
–
79
–
–
–
79
Deletions
–
(2)
–
–
–
(2)
Translation difference
5
2
–
3
8
18
Gross carrying value as at March 31, 2024
2,512
1,110
1
349
782
4,754
Accumulated amortization as at April 1, 2023
(1,600)
(688)
(1)
(195)
(426)
(2,910)
Amortization expense
(194)
(75)
–
(38)
(125)
(432)
Deletions
–
2
–
–
–
2
Translation differences
(6)
(4)
–
(2)
(5)
(17)
Accumulated amortization as at March 31, 2024
(1,800)
(765)
(1)
(235)
(556)
(3,357)
Carrying value as at April 1, 2023
907
343
–
151
348
1,749
Carrying value as at March 31, 2024
712
345
–
114
226
1,397
Infosys Integrated Annual Report 2023-24
316
Particulars
Customer-
related
Software-
related
Intellectual
property
rights-
related
Brand or
trademark-
related
Others*
Total
Estimated useful life (in years)
1-15
3-10
–
3-10
3-7
–
Estimated remaining useful life (in years)
1-10
1-5
–
1-6
1-4
–
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2023 were as follows :
(In ₹ crore)
Particulars
Customer-
related
Software-
related
Intellectual
property
rights-
related
Brand or
trademark-
related
Others*
Total
Gross carrying value as at April 1, 2022
2,080
915
1
299
686
3,981
Additions
–
62
–
–
–
62
Acquisition through business combination (Refer to Note 2.1)
274
–
–
24
30
328
Deletions
–
(4)
–
–
–
(4)
Translation difference
153
58
–
23
58
292
Gross carrying value as at March 31, 2023
2,507
1,031
1
346
774
4,659
Accumulated amortization as at April 1, 2022
(1,279)
(569)
(1)
(141)
(284)
(2,274)
Amortization expense
(236)
(84)
–
(45)
(119)
(484)
Deletions
–
3
–
–
–
3
Translation differences
(85)
(38)
–
(9)
(23)
(155)
Accumulated amortization as at March 31, 2023
(1,600)
(688)
(1)
(195)
(426)
(2,910)
Carrying value as at April 1, 2022
801
346
–
158
402
1,707
Carrying value as at March 31, 2023
907
343
–
151
348
1,749
Estimated useful life (in years)
1-15
3-10
–
3-10
3-7
–
Estimated remaining useful life (in years)
1-11
1-6
–
1-7
1-5
–
* Majorly includes intangibles related to vendor relationships
The amortization expense has been included under depreciation and amortization expense in the Consolidated Statement of Profit and Loss.
Research and Development expenditure
Research and development expense recognized in the Consolidated Statement of Profit and Loss for the year ended March 31, 2024 and
March 31, 2023 was ₹1,118 crore and ₹1,042 crore, respectively.
2.5 Investments
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current investments
Unquoted
Investments carried at fair value through other comprehensive income
Preference securities
91
193
Equity securities
2
3
93
196
Investments carried at fair value through profit or loss
Target maturity fund units
431
402
Others (1)
198
169
629
571
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
317
Particulars
As at March 31,
2024
2023
Quoted
Investments carried at amortized cost
Government bonds
28
28
Tax-free bonds
1,731
1,742
1,759
1,770
Investments carried at fair value through other comprehensive income
Non-convertible debentures
2,217
2,713
Equity securities
113
–
Government securities
6,897
7,319
9,227
10,032
Total non-current investments
11,708
12,569
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units
2,615
975
2,615
975
Investments carried at fair value through other comprehensive income
Commercial paper
4,830
742
Certificates of deposit
3,043
3,574
7,873
4,316
Quoted
Investments carried at amortized cost
Tax-free bonds
–
150
–
150
Investments carried at fair value through other comprehensive income
Non-convertible debentures
1,962
1,155
Government securities
465
313
2,427
1,468
Total current investments
12,915
6,909
Total investments
24,623
19,478
Aggregate amount of quoted investments
13,413
13,420
Market value of quoted investments (including interest accrued), current
2,428
1,637
Market value of quoted investments (including interest accrued), non-current
11,201
12,042
Aggregate amount of unquoted investments
11,210
6,058
Investments carried at amortized cost
1,759
1,920
Investments carried at fair value through other comprehensive income
19,620
16,012
Investments carried at fair value through profit or loss
3,244
1,546
(1) Uncalled capital commitments outstanding as at March 31, 2024 and March 31, 2023 was ₹79 crore and ₹92 crore, respectively.
Refer to Note 2.11 for Accounting policies on Financial Instruments.
Infosys Integrated Annual Report 2023-24
318
Details of amounts recorded in Other comprehensive income :
(In ₹ crore)
Particulars
Year ended March 31, 2024
Year ended March 31, 2023
Gross
Tax
Net
Gross
Tax
Net
Net gain / (loss) on
Non-convertible debentures
62
5
67
(100)
(1)
(101)
Certificates of deposit
(1)
–
(1)
(1)
–
(1)
Government securities
98
(20)
78
(162)
8
(154)
Equity and preference securities
10
9
19
(8)
1
(7)
Method of fair valuation:
(In ₹ crore)
Class of investment
Method
Fair value as at March 31,
2024
2023
Liquid mutual fund units – carried at fair value through
profit or loss
Quoted price
2,615
975
Target maturity fund units – carried at fair value
through profit or loss
Quoted price
431
402
Tax-free bonds and government bonds – carried at
amortized cost
Quoted price and market observable inputs
1,973
2,148
Non-convertible debentures – carried at fair value
through other comprehensive income
Quoted price and market observable inputs
4,179
3,868
Government securities – carried at fair value through
other comprehensive income
Quoted price and market observable inputs
7,362
7,632
Commercial papers – carried at fair value through
other comprehensive income
Market observable inputs
4,830
742
Certificates of deposit – carried at fair value through
other comprehensive income
Market observable inputs
3,043
3,574
Quoted equity securities – carried at fair value through
other comprehensive income
Quoted price
113
–
Unquoted equity and preference securities – carried at
fair value through other comprehensive income
Discounted cash flows method, Market multiples
method, Option pricing model
93
196
Others – carried at fair value through profit or loss
Discounted cash flows method, Market multiples
method, Option pricing model
198
169
Total
24,837
19,706
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, 2024 and March 31, 2023 are as follows :
(In ₹ crore, except otherwise stated)
Particulars
As at March 31,
2024
2023
Preference securities
Airviz, Inc.
–
–
2,89,695(2,89,695) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop, Inc.
60
53
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
31
26
2,28,501(2,28,501) Preferred Stock, fully paid up, par value ₹1 each
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
319
Particulars
As at March 31,
2024
2023
Tidalscale, Inc.
–
–
Nil (36,74,269) Series B Preferred Stock
Ideaforge Technology Limited
–
114
Nil (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
Nil (1,787) Series B compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
Total investment in preference securities
91
193
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
2
2
15,000 (15,000) equity shares at ₹1,000 each, fully paid up, par value ₹1,000 each
Ideaforge Technology Limited
113
1
16,47,314 (22,600) equity shares at ₹10, fully paid up
Total investment in equity instruments
115
3
Others
Stellaris Venture Partners India
84
82
The House Fund II, L.P.
107
84
The House Fund III, L.P.
7
3
Total investment in others
198
169
Total
404
365
2.6 Loans
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Loans considered good – Unsecured
Other loans
Loans to employees
34
39
34
39
Loans credit impaired – Unsecured
Other loans
Loans to employees
2
2
Less: Allowance for credit
impairment
(2)
(2)
–
–
Total non-current loans
34
39
Current
Loans considered good – Unsecured
Other loans
Loans to employees
248
289
Total current loans
248
289
Total loans
282
328
2.7 Other financial assets
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Security deposits (1)
259
287
Unbilled revenues (1)#
1,677
1,185
Net investment in sublease of right
of use asset (1)
3
305
Restricted deposits (1)*
47
96
Others (1)**
1,119
925
Total non-current other financial
assets
3,105
2,798
Current
Security deposits (1)
75
42
Restricted deposits (1)*
2,535
2,348
Unbilled revenues (1)#
7,923
8,317
Interest accrued but not due (1)
537
488
Foreign currency forward and
options contracts (2)(3)
84
101
Net investment in sublease of
right-of-use asset (1)
6
53
Infosys Integrated Annual Report 2023-24
320
Particulars
As at March 31,
2024
2023
Others (1)**
925
255
Total current other financial assets
12,085
11,604
Total other financial assets
15,190
14,402
(1) Financial assets carried at amortized cost
15,106
14,301
(2) Financial assets carried at fair value
through other comprehensive income
23
32
(3) Financial assets carried at fair value
through profit or loss
61
69
*
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
** Primarily includes net investment in lease
2.8 Trade receivables
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Current
Trade receivable considered good
– Unsecured
30,713
25,965
Less: Allowance for expected
credit loss
520
541
Trade receivable considered
good – Unsecured
30,193
25,424
Trade receivable – credit impaired
– Unsecured
196
142
Less: Allowance for credit
impairment
196
142
Trade receivable – credit
impaired – Unsecured
–
–
Total trade receivables
30,193
25,424
The trade receivables ageing schedule for the year ended as on March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Not due
Outstanding for following periods from due date of payment
Total
Less than 6
months
6 months to
1 year
1-2 years
2-3 years
More than
3 years
Undisputed trade receivables – considered
good
22,572
7,402
319
414
2
4
30,713
18,397
7,501
58
3
4
2
25,965
Undisputed trade receivables – credit impaired
3
15
7
6
4
106
141
14
7
2
4
69
38
134
Disputed trade receivables – considered good
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Disputed trade receivables – credit impaired
–
1
21
26
2
5
55
–
–
–
–
3
5
8
22,575
7,418
347
446
8
115
30,909
18,411
7,508
60
7
76
45
26,107
Less: Allowance for credit loss
716
683
Total trade receivables
30,193
25,424
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
321
2.9 Cash and cash equivalents
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Balances with banks
In current and deposit accounts
14,786
10,026
Cash on hand
–
–
Others
Deposits with financial institutions
–
2,147
Total cash and cash equivalents
14,786
12,173
Balances with banks in unpaid
dividend accounts
37
37
Deposit with more than 12 months
maturity
57
833
Cash and cash equivalents as at March 31, 2024 and March 31,
2023 include restricted cash and bank balances of ₹348 crore
and ₹362 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 of time deposits, which can be
withdrawn by the Group at any point without prior notice or
penalty on the principal.
2.10 Other assets
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Non-current
Capital advances
155
159
Advances other than capital advances
Others
Withholding taxes and others
673
684
Unbilled revenues #
103
264
Defined benefit plan assets
31
36
Prepaid expenses
343
332
Deferred contract cost
Cost of obtaining a contract *
129
191
Cost of fulfillment
687
652
Total non-current other assets
2,121
2,318
Current
Advances other than capital advances
Payment to vendors for supply of
goods
356
202
Others
Unbilled revenues #
4,845
6,972
Withholding taxes and others
3,540
3,268
Prepaid expenses
3,329
2,745
Deferred contract cost
Particulars
As at March 31,
2024
2023
Cost of obtaining a contract *
200
853
Cost of fulfillment
358
175
Other receivables
180
261
Total current other assets
12,808
14,476
Total other assets
14,929
16,794
#
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, 2024 and March 31, 2023, the financial liability
pertaining to such arrangements amounts to ₹372 crore and ₹731 crore,
respectively. For 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 (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
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
Infosys Integrated Annual Report 2023-24
322
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 (FVTPL)
A financial asset which is not classified in any of the above
categories are subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
using the effective interest method, except for contingent
consideration 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
forecast cash transactions.
When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive income
and accumulated in the cash flow hedging reserve. Any
ineffective portion of changes in the fair value of the derivative
is recognized immediately in the net profit in the Consolidated
Statement of Profit and Loss. If the hedging instrument no longer
meets the criteria for hedge accounting, then hedge accounting
is discontinued prospectively. If the hedging instrument expires
or is sold, terminated or exercised, the cumulative gain or loss
on the hedging instrument recognized in cash flow hedging
reserve till the period the hedge was effective remains in
cash flow hedging reserve until the forecasted transaction
occurs. The cumulative gain or loss previously recognized in
the cash flow hedging reserve is transferred to the net profit
in the Consolidated Statement of Profit and Loss upon the
occurrence of the related forecasted transaction. If the forecasted
transaction is no longer expected to occur, then the amount
accumulated in cash flow hedging reserve is reclassified to net
profit in the Consolidated Statement of Profit and Loss.
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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
323
Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2024 are as follows:
(In ₹ crore)
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
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Mandatory
Assets
Cash and cash equivalents
(Refer to Note 2.9)
14,786
–
–
–
–
14,786
14,786
Investments (Refer to Note 2.5)
Equity and preference securities
–
–
–
206
–
206
206
Tax-free bonds and government
bonds
1,759
–
–
–
–
1,759
1,973 (1)
Liquid mutual fund units
–
–
2,615
–
–
2,615
2,615
Target maturity fund units
–
–
431
–
–
431
431
Non-convertible debentures
–
–
–
–
4,179
4,179
4,179
Government securities
–
–
–
–
7,362
7,362
7,362
Commercial paper
–
–
–
–
4,830
4,830
4,830
Certificates of deposit
–
–
–
–
3,043
3,043
3,043
Other investments
–
–
198
–
–
198
198
Trade receivables (Refer to Note 2.8)
30,193
–
–
–
–
30,193
30,193
Loans (Refer to Note 2.6)
282
–
–
–
–
282
282
Other financial assets
(Refer to Note 2.7)(3)
15,106
–
61
–
23
15,190
15,106 (2)
Total
62,126
–
3,305
206
19,437
85,074
85,204
Liabilities
Trade payables (Refer to Note 2.14)
3,956
–
–
–
–
3,956
3,956
Lease liabilities (Refer to Note 2.21)
8,359
–
–
–
–
8,359
8,359
Financial liability under option
arrangements (Refer to Note 2.13)
–
–
597
–
–
597
597
Other financial liabilities
(Refer to Note 2.13)
15,750
–
30
–
1
15,781
15,781
Total
28,065
–
627
–
1
28,693
28,693
(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
Infosys Integrated Annual Report 2023-24
324
The carrying value and fair value of financial instruments by categories as at March 31, 2023 were as follows :
(In ₹ crore)
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
Designated
upon initial
recognition
Mandatory
Equity
instruments
designated
upon initial
recognition
Mandatory
Assets
Cash and cash
equivalents (Refer to Note 2.9)
12,173
–
–
–
–
12,173
12,173
Investments (Refer to Note 2.5)
Equity and preference securities
–
–
–
196
–
196
196
Tax-free bonds and government
bonds
1,920
–
–
–
–
1,920
2,148 (1)
Liquid mutual fund units
–
–
975
–
–
975
975
Target maturity fund units
–
–
402
–
–
402
402
Non-convertible debentures
–
–
–
–
3,868
3,868
3,868
Government securities
–
–
–
–
7,632
7,632
7,632
Commercial paper
–
–
–
–
742
742
742
Certificates of deposit
–
–
–
–
3,574
3,574
3,574
Other investments
–
–
169
–
–
169
169
Trade receivables (Refer to Note 2.8)
25,424
–
–
–
–
25,424
25,424
Loans (Refer to Note 2.6)
328
–
–
–
–
328
328
Other financial assets
(Refer to Note 2.7)(3)
14,301
–
69
–
32
14,402
14,311 (2)
Total
54,146
–
1,615
196
15,848
71,805
71,942
Liabilities
Trade payables (Refer to Note 2.14)
3,865
–
–
–
–
3,865
3,865
Lease liabilities (Refer to Note 2.21)
8,299
–
–
–
–
8,299
8,299
Financial liability under option
arrangements (Refer to Note 2.13)
–
–
600
–
–
600
600
Other financial liabilities
(Refer to Note 2.13)
17,359
–
161
–
14
17,534
17,534
Total
29,523
–
761
–
14
30,298
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
For trade receivables and trade payables and other assets and payables maturing within one year from the Balance Sheet date, the
carrying amounts approximate the fair value due to the short maturity of these instruments.
Fair value hierarchy
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
325
The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2024 is as follows :
(In ₹ crore)
Particulars
As at March
31, 2024
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Assets
Investments (Refer to Note 2.5)
Investments in liquid mutual funds
2,615
2,615
–
–
Investments in target maturity fund units
431
431
–
–
Investments in tax-free bonds
1,944
1,944
–
–
Investments in government bonds
29
29
–
–
Investments in non-convertible debentures
4,179
3,922
257
–
Investment in government securities
7,362
7,289
73
–
Investments in equity securities
115
113
–
2
Investments in preference securities
91
–
–
91
Investments in commercial paper
4,830
–
4,830
–
Investments in certificates of deposit
3,043
–
3,043
–
Other investments
198
–
–
198
Others
Derivative financial instruments – gain on outstanding foreign exchange
forward and option contracts
84
–
84
–
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward
and option contracts (Refer to Note 2.13)
31
–
31
–
Financial liability under option arrangements (Refer to Note 2.13)(1)
597
–
–
597
(1) Discount rate ranges from 9% to 15%
During the year ended March 31, 2024, government securities , non-convertible debentures and tax-free bonds of ₹2,143 crore was
transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, government securities
of ₹73 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, 2023 was as follows :
(In ₹ crore)
Particulars
As at March
31, 2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Assets
Investments (Refer to Note 2.5)
Investments in liquid mutual funds
975
975
–
–
Investments in target maturity fund units
402
402
–
–
Investments in tax-free bonds
2,120
1,331
789
–
Investments in government bonds
28
28
–
–
Investments in non-convertible debentures
3,868
1,793
2,075
–
Investment in government securities
7,632
7,549
83
–
Investments in equity instruments
3
–
–
3
Investments in preference securities
193
–
–
193
Investments in commercial paper
742
–
742
–
Investments in certificates of deposit
3,574
–
3,574
–
Infosys Integrated Annual Report 2023-24
326
Particulars
As at March
31, 2023
Fair value measurement at end of the
reporting period using
Level 1
Level 2
Level 3
Other investments
169
–
–
169
Others
Derivative financial instruments – gain on outstanding foreign exchange
forward and option contracts (Refer to Note 2.7)
101
–
101
–
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange
forward and option contracts (Refer to Note 2.13)
78
–
78
–
Financial liability under option arrangements (Refer to Note 2.13)(1)
600
–
–
600
Liability towards contingent consideration (Refer to Note 2.13)(1)
97
–
–
97
(1) Discount rate ranges from 10% to 15%
During the year ended March 31, 2023, government securities
and tax-free bonds 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.
A one percentage point change in the unobservable inputs used
in fair valuation of Level 3 assets and liabilities does not have a
significant impact in its value.
Majority of investments of the 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
papers, treasury bills, government securities, non-convertible
debentures, quoted bonds issued by government and
quasi-government organizations. 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 Group's
risk management program.
Financial risk management
Financial risk factors
The Group's activities expose it to a variety of financial risks:
market risk, credit risk and liquidity risk. The Group's primary
focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial
performance. The primary market risk to the Group is foreign
exchange risk. The Group uses derivative financial instruments
to mitigate foreign exchange related risk exposures. The Group's
exposure to credit risk is influenced mainly by the individual
characteristic of each customer and the concentration of risk
from the top few customers.
Market risk
The Group operates internationally and a major portion of the
business is transacted in several currencies and consequently
the Group is exposed to foreign exchange risk through its sales
and services in the United States and elsewhere, and purchases
from overseas suppliers in various foreign currencies. The Group
holds derivative financial instruments such as foreign exchange
forward and 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 analysis of foreign currency risk from financial assets and liabilities as at March 31, 2024 is as follows :
(In ₹ crore)
Particulars
US Dollar
Euro
United
Kingdom
Pound
Sterling
Australian
Dollar
Other
currencies
Total
Net financial assets
26,126
9,559
2,153
1,479
2,917
42,234
Net financial liabilities
(11,925)
(3,378)
(710)
(813)
(2,218)
(19,044)
Total
14,201
6,181
1,443
666
699
23,190
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
327
The analysis of foreign currency risk from financial assets and liabilities as at March 31, 2023 was as follows :
(In ₹ crore)
Particulars
US Dollar
Euro
United
Kingdom
Pound
Sterling
Australian
Dollar
Other
currencies
Total
Net financial assets
20,777
7,459
1,816
1,809
2,604
34,465
Net financial liabilities
(12,148)
(3,734)
(737)
(953)
(2,208)
(19,780)
Total
8,629
3,725
1,079
856
396
14,685
Sensitivity analysis between Indian rupee and US Dollar
Particulars
Year ended March 31,
2024
2023
Impact on the Group's incremental operating margins
0.43%
0.44%
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
As at March 31, 2024
As at March 31, 2023
In million
In ₹ crore
In million
In ₹ crore
Derivatives designated as cash flow hedges
Forward contracts
In Euro
30
270
–
–
Option contracts
In Euro
236
2,121
325
2,907
In Australian Dollar
106
573
140
770
In United Kingdom Pound Sterling
35
368
55
559
Other derivatives
Forward contracts
In US Dollar
1,423
11,866
1,670
13,726
In Euro
574
5,163
316
2,825
In Singapore Dollar
171
1,046
204
1,245
In United Kingdom Pound Sterling
86
902
86
877
In Swiss Franc
17
158
1
8
In New Zealand Dollar
30
149
30
154
In Czech Koruna
374
135
364
134
In Danish Krone
100
121
–
–
In Norwegian Krone
130
100
100
79
In Canadian Dollar
15
92
–
–
In Australian Dollar
14
75
10
55
In Hungarian Forint
2,500
57
–
–
In Chinese Yuan
43
49
41
49
In South African rand
85
37
85
39
Infosys Integrated Annual Report 2023-24
328
Particulars
As at March 31, 2024
As at March 31, 2023
In million
In ₹ crore
In million
In ₹ crore
Option contracts
In US Dollar
543
4,527
300
2,465
In Euro
100
897
160
1,431
In Australian Dollar
20
111
30
165
In United Kingdom Pound Sterling
–
–
15
153
Total forwards and options contracts
28,817
27,641
The group recognized a net gain of ₹186 crore during year
ended March 31, 2024 and a net loss of ₹558 crore for the year
ended March 31, 2023, respectively, on derivative financial
instruments not designated as cash flow hedges which are
included in other income.
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:
(In ₹ crore)
Particulars
As at March 31,
2024
2023
Not later than one month
10,877
13,155
Later than one month and not later
than three months
15,963
11,159
Later than three months and not later
than one year
1,977
3,327
Total
28,817
27,641
During the year ended March 31, 2024 and March 31, 2023, 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 forecast cash
transactions. The related hedge transactions for balance in cash
flow hedges as of March 31, 2024 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 year ended
March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Gain / (Loss)
Balance at the beginning of the year
(5)
2
Gain / (Loss) recognized in other
comprehensive income during the
year
8
90
Amount reclassified to profit or loss
during the year
7
(99)
Tax impact on above
(4)
2
Balance at the end of the year
6
(5)
The Group offsets a financial asset and a financial liability when it
currently has a legally enforceable right to set off the recognized
amounts and the Group intends either to settle on a net basis, or
to realize the asset and settle the liability simultaneously.
The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows:
(In ₹ crore)
Particulars
As at March 31, 2024
As at March 31, 2023
Derivative
financial asset
Derivative
financial liability
Derivative
financial asset
Derivative
financial liability
Gross amount of recognized financial asset / liability
98
(45)
127
(104)
Amount set off
(14)
14
(26)
26
Net amount presented in Balance Sheet
84
(31)
101
(78)
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
329
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 ₹30,193 crore and ₹25,424
crore as at March 31, 2024 and March 31, 2023, respectively and
unbilled revenues amounting to ₹14,548 crore and ₹16,738 crore
as at March 31, 2024 and March 31, 2023, respectively. Trade
receivables and unbilled revenues are typically unsecured and
are derived from revenues from customers primarily located
in the United States of America. Credit risk has always been
managed by the Group through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of
customers to which the Group grants credit terms in the normal
course of business. The Group uses the expected credit loss
model to assess any required allowances; and uses a provision
matrix to compute the expected credit loss allowance for
trade receivables and unbilled revenues. This matrix takes into
account credit reports and other related credit information to
the extent available.
The Group's exposure to credit risk is influenced mainly
by the individual characteristic of each customer and the
concentration of risk from the top few customers. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.
The details in respect of percentage of revenues generated from
top five customers and top ten customers is as follows :
(In %)
Particulars
Year ended March 31,
2024
2023
Revenue from top five customers
13.3
12.7
Revenue from top ten customers
20.0
20.2
Credit risk exposure
The Group’s credit period generally ranges from 30-75 days.
The allowance for lifetime ECL on customer balances for the year
ended March 31, 2024 and March 31, 2023 was ₹90 crore and
₹228 crore, respectively.
The movement in credit loss allowance on customer
balance is as follows:
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Balance at the beginning
961
858
Impairment loss
recognized / (reversed), net
90
228
Amounts written off
(98)
(166)
Translation differences
–
41
Balance at the end
953
961
The gross carrying amount of a financial asset is written
off (either partially or in full) when there is no realistic
prospect of recovery.
Credit exposure
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Trade receivables
30,193
25,424
Unbilled revenues
14,548
16,738
Days sales outstanding was 71 days and 62 days as of March 31,
2024 and March 31, 2023, respectively.
Credit risk on cash and cash equivalents is limited as the Group
generally invest in deposits with banks 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.
The investments of the Group primarily include investment
in liquid mutual fund units, target maturity fund units, tax
free bonds, certificates of deposit, commercial paper, treasury
bills, government securities, non-convertible debentures,
quoted bonds issued by government and quasi government
organizations. 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, 2024, the Group had a working capital of
₹50,638 crore including cash and cash equivalents of ₹14,786
crore and current investments of ₹12,915 crore. 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, 2024 and March 31, 2023, the outstanding
compensated absences were ₹2,711 crore and ₹2,482 crore,
respectively, which have been substantially funded. Accordingly
no liquidity risk is perceived.
Infosys Integrated Annual Report 2023-24
330
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2024 are as follows :
(In ₹ crore)
Particulars
Less than 1 year
1-2 years
2-4 years
4-7 years
Total
Trade payables
3,956
–
–
–
3,956
Other financial liabilities (excluding liability towards contingent
consideration) on an undiscounted basis (Refer to Note 2.13)
13,820
1,321
570
67
15,778
Financial liability under option arrangements on an undiscounted
basis (Refer to Note 2.13)
554
–
–
136
690
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2023 were as follows :
(In ₹ crore)
Particulars
Less than 1 year
1-2 years
2-4 years
4-7 years
Total
Trade payables
3,865
–
–
–
3,865
Other financial liabilities (excluding liability towards contingent
consideration) (Refer to Note 2.13)
15,403
1,532
438
13
17,386
Financial liability under option arrangements on an
undiscounted basis (Refer to Note 2.13)
676
–
–
–
676
Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)
101
–
–
–
101
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 a 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
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 Indian rupees is recognized in other comprehensive income
and is presented within equity.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
331
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
(In ₹ crore, except as otherwise stated)
Particulars
Year ended March 31,
2024
2023
Authorized
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000) equity
shares
2,400
2,400
Issued, subscribed and paid-up
Equity shares, ₹5 par value(1)
2,071
2,069
413,99,50,635 (413,63,87,925) equity
shares fully paid-up(2)
2,071
2,069
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 1,09,16,829 (1,21,72,119)
The Company has only one class of shares referred to as equity
shares having a par value of ₹5. Each holder of equity shares is
entitled to one vote per share. The equity shares represented by
American Depositary Shares (ADSs) carry similar rights to voting
and dividends as the other equity shares. Each ADS represents
one underlying equity share.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets
of the Company in proportion to the number of equity shares
held by the shareholders, after distribution of all preferential
amounts. However, no such preferential amounts exist currently,
other than the amounts held by irrevocable controlled trusts. For
irrevocable controlled trusts, the corpus would be settled in favor
of the beneficiaries.
There are no voting, dividend or liquidation rights to the holders
of options issued under the Company's share option plans.
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, 2024:
Buyback
In the period of five years immediately preceding March 31,
2024, the Company had purchased and extinguished a total
of 21,41,00,951 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 from financial year 2025, the Company expects to
continue its policy of returning approximately 85% of the
free cash flow cumulatively over a five-year period through a
combination of semi-annual dividends and / or share buyback
/ special dividends subject to applicable laws and requisite
approvals, if any. Under this policy, the Company expects to
progressively increase its annual dividend per share (excluding
special dividend 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 a 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.
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, 2024, 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.
Infosys Integrated Annual Report 2023-24
332
2.12.2 Shareholding of promoter
Shares held by promoters at March 31, 2024:
Promoter name
No. of shares
% of total shares
% change during the year
Sudha Gopalakrishnan
9,53,57,000
2.30
–
Rohan Murty
6,08,12,892
1.47
–
S Gopalakrishnan
3,18,53,808
0.77
(23.89)
Nandan M Nilekani
4,07,83,162
0.98
–
Akshata Murty
3,89,57,096
0.94
–
Asha Dinesh
3,85,79,304
0.93
–
Sudha N Murty
3,45,50,626
0.83
–
Rohini Nilekani
3,43,35,092
0.83
–
Dinesh Krishnaswamy
3,24,79,590
0.78
–
Shreyas Shibulal
2,13,23,515
0.51
(10.04)
N R Narayana Murthy
1,51,45,638
0.36
(9.01)
Nihar Nilekani
1,26,77,752
0.31
–
Janhavi Nilekani
85,89,721
0.21
–
Kumari Shibulal
49,45,935
0.12
(5.77)
Deeksha Dinesh
76,46,684
0.18
–
Divya Dinesh
76,46,684
0.18
–
Meghana Gopalakrishnan
1,48,34,928
0.36
206.83
Shruti Shibulal
27,37,538
0.07
–
S D Shibulal
52,08,673
0.13
(10.42)
Ekagrah Rohan Murty
15,00,000
0.04
100.00
Promoters Group
Gaurav Manchanda
1,25,24,106
0.30
(8.82)
Milan Shibulal Manchanda
65,13,389
0.16
(6.52)
Nikita Shibulal Manchanda
65,13,389
0.16
(6.52)
Bhairavi Madhusudhan Shibulal
60,21,716
0.15
(9.84)
Shray Chandra
7,19,424
0.02
–
Tanush Nilekani Chandra
33,56,017
0.08
–
The percentage shareholding above has been computed considering the outstanding number of shares of 415,08,67,464
as at March 31, 2024.
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.
The amount of per share dividend recognized as distribution to
equity shareholders is as follows :
(In ₹)
Particulars
Year ended March 31,
2024
2023
Final dividend for fiscal 2022
–
16.00
Interim dividend for fiscal 2023
–
16.50
Final dividend for fiscal 2023
17.50
–
Interim dividend for fiscal 2024
18.00
–
During the year ended March 31, 2024, on account of the final
dividend for fiscal 2023 and interim dividend for fiscal 2024,
the Company has incurred a net cash outflow of ₹14,692 crore
(excluding dividend paid on treasury shares).
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
333
The Board of Directors, in its meeting held on April 18, 2024,
recommended a final dividend of ₹20 per equity share for the
financial year ended March 31, 2024 and a special dividend of
₹8 per equity share. The payment is subject to the approval of
shareholders in the AGM of the Company to be held on June
26, 2024 and if approved, would result in a net cash outflow
of approximately ₹11,592 crore (excluding dividend paid
on treasury shares).
The details of shareholders holding more than 5% shares as at March 31, 2024 and March 31, 2023 are as follows :
Name of the shareholder
As at March 31, 2024
As at March 31, 2023
Number of shares
% held
Number of shares
% held
Deutsche Bank Trust Company Americas (Depository of ADR's - legal
ownership)
44,24,17,564
10.66
50,57,90,851
12.19
Life Insurance Corporation of India
38,59,52,941
9.30
29,82,44,977
7.19
The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2024 and March 31, 2023
is as follows :
(In ₹ crore, except as stated otherwise)
Particulars
As at March 31, 2024
As at March 31, 2023
Number of shares
% held
Number of shares
% held
As at the beginning of the year
413,63,87,925
2,069
419,30,12,929
2,098
Add: Shares issued on exercise of employee stock options
35,62,710
2
38,01,344
1
Less: Shares bought back
–
–
6,04,26,348
30
As at the end of the year
413,99,50,635
2,071
413,63,87,925
2,069
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 consolidated 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 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 four
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
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 1,09,16,829 and 1,21,72,119 shares as at
March 31, 2024 and March 31, 2023, 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,
2024 and March 31, 2023.
Infosys Integrated Annual Report 2023-24
334
The summary of grants made during year ended March 31, 2024 and March 31, 2023 is as follows :
Particulars
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Equity-settled RSUs
Key Management Personnel (KMP)
1,41,171
2,10,643
4,98,730
3,67,479
Employees other than KMP
40,46,731
37,04,014
46,40,640
17,84,975
41,87,902
39,14,657
51,39,370 21,52,454
Cash-settled RSUs
Key Management Personnel (KMP)
–
–
–
–
Employees other than KMP
–
–
1,76,990
92,400
–
–
1,76,990
92,400
Total grants
41,87,902
39,14,657
53,16,360 22,44,854
Notes on grants to KMP
CEO & MD
Under the 2015 Plan
The Board, on April 13, 2023, based on the recommendations of
the Nomination and Remuneration Committee, approved the
following grants for fiscal 2024. In accordance with such approval
the following grants were made effective May 2, 2023.
•
2,72,026 performance-based RSUs (annual performance
equity grant) of fair value of ₹34.75 crore. These RSUs will
vest in line with the employment agreement based on
achievement of certain performance targets.
•
15,656 performance-based grant of RSUs (annual
performance equity ESG grant) of fair value of ₹2 crore.
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.
•
39,140 performance-based grant of RSUs (annual
performance equity TSR grant) of fair value of ₹5 crore . 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.
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 18,104 RSUs was
made effective February 1, 2024 for fiscal 2024.
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, 2024,
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 payments.
The grant date for this purpose in accordance with Ind AS 102,
Share-based payments is July 1, 2022.
Under the 2019 Plan
The Board, on April 13, 2023, based on the recommendations
of the Nomination and Remuneration Committee, approved a
performance-based grant of RSUs amounting to ₹10 crore for
fiscal 2024 under the 2019 Plan. These RSUs will vest based on
achievement of certain performance targets. Accordingly, 78,281
performance-based RSUs were granted effective May 2, 2023.
Other KMP
Under the 2015 Plan
During the year ended March 31, 2024, based on
recommendations of Nomination and Remuneration
Committee, the Board approved 1,47,030 time-based RSUs and
6,774 performance-based RSUs to other KMP under the 2015
Plan. Time-based RSUs will vest over three to four years and
performance-based RSUs will vest over three years based on
certain performance targets.
Under the 2019 Plan
During the year ended March 31, 2024, based on
recommendations of Nomination and Remuneration Committee,
the Board approved performance-based grants of 62,890 RSUs to
other KMPs under the 2019 Plan. These RSUs will vest over three
years based on achievement of certain performance targets.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
335
The break-up of employee stock compensation expense is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Granted to:
KMP*
68
49
Employees other than KMP
584
470
Total (1)
652
519
(1) Cash-settled stock compensation expense included in the above
13
5
* Includes reversal of employee stock compensation expense on account of resignation / retirement of key managerial personnel.
The activity in the 2015 and 2019 Plan for equity-settled, share-based payment transactions during the year ended March 31, 2024 and
March 31, 2023 is as follows :
Particulars
Year ended March 31, 2024
Year ended March 31, 2023
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
54,08,018
5.00
62,32,975
4.82
Granted
51,39,370
5.00
21,52,454
5.00
Exercised
18,15,025
5.00
21,05,904
4.50
Forfeited and expired
6,56,305
5.00
8,71,507
4.93
Outstanding at the end
80,76,058
5.00
54,08,018
5.00
Exercisable at the end
8,31,050
4.98
7,87,976
4.97
2015 Plan: Employee Stock Options (ESOPs)
Outstanding at the beginning
1,34,030
529
7,00,844
557
Granted
–
–
–
–
Exercised
51,980
499
5,66,814
596
Forfeited and expired
–
–
–
–
Outstanding at the end
82,050
551
1,34,030
529
Exercisable at the end
82,050
551
1,34,030
529
2019 Plan: RSU
Outstanding at the beginning
72,22,038
5.00
49,58,938
5.00
Granted
41,87,902
5.00
39,14,657
5.00
Exercised
16,95,705
5.00
11,28,626
5.00
Forfeited and expired
16,90,380
5.00
5,22,931
5.00
Outstanding at the end
80,23,855
5.00
72,22,038
5.00
Exercisable at the end
8,14,798
5.00
13,52,150
5.00
The weighted average share price of option exercised is as follows :
(In ₹)
Particulars
2019 Plan
2015 Plan
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Weighted average share price of options exercised
1,352
1,485
1,414
1,515
Infosys Integrated Annual Report 2023-24
336
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2024 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)
80,23,855
1.42
5
80,76,058
1.77
5
450 - 640 (ESOP)
–
–
–
82,050
1.10
551
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 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)
72,22,038
1.33
5.00
54,08,018
1.49
5.00
450 - 630 (ESOP)
–
–
–
1,34,030
1.77
529
As at March 31, 2024 and March 31, 2023, 2,91,795 and 2,24,924 cash-settled options were outstanding, respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹13 crore and ₹4 crore as at March 31, 2024 and March 31, 2023, 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 2024 Equity
shares-RSU
Fiscal 2024-ADS-
RSU
Fiscal 2023-Equity
shares-RSU
Fiscal 2023-ADS-
RSU
Weighted average share price (₹) / ($ ADS)
1,588
19.19
1,525
18.08
Exercise price (₹) / ($ ADS)
5.00
0.07
5.00
0.07
Expected volatility (%)
23-31
25-33
23-32
27-34
Expected life of the option (years)
1-4
1-4
1-4
1-4
Expected dividends (%)
2-3
2-3
2-3
2-3
Risk-free interest rate (%)
7
4-5
5-7
2-5
Weighted average fair value as on grant date (₹) / ($ ADS)
1,317
16.27
1,210
13.69
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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
337
2.13 Other financial liabilities
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Non-current
Others
Accrued compensation to
employees (1)
7
5
Accrued expenses (1)
1,779
1,628
Compensated absences
89
83
Financial liability under option
arrangements (2)#
98
–
Other payables (1)(4)
157
342
Total non-current other financial
liabilities
2,130
2,058
Current
Unpaid dividends (1)
37
37
Others
Accrued compensation to
employees (1)
4,454
4,174
Accrued expenses (1)
8,224
7,802
Payable for acquisition of business
– Contingent consideration (2)
–
97
Payable by controlled trusts (1)
211
211
Compensated absences
2,622
2,399
Financial liability under option
arrangements (2)#
499
600
Foreign currency forward and
options contracts (2)(3)
31
78
Capital creditors (1)
310
674
Other payables (1)(4)
571
2,486
Total current other financial
liabilities
16,959
18,558
Total other financial liabilities
19,089
20,616
(1) Financial liability carried at amortized cost
15,750
17,359
(2) Financial liability carried at fair value
through profit or loss
627
761
Particulars
Year ended March 31,
2024
2023
(3) Financial liability carried at fair value
through other comprehensive income
1
14
Financial liability under option
arrangements on an undiscounted
basis
690
676
Contingent consideration on
undiscounted basis
–
101
(4) Deferred contract cost in 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, 2024 and
March 31, 2023, the financial liability pertaining to such arrangements
amounts to ₹372 crore and ₹731 crore, respectively. For 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.
# Represents liability related to options issued by the Group over the non-
controlling interests in its subsidiaries
Accrued expenses primarily relate to cost of technical
sub-contractors, telecommunication charges, legal and
professional charges, brand building expenses, overseas
travel expenses, office maintenance and cost of third party
software and hardware.
2.14 Trade payables
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Trade payables
3,956
3,865
Total trade payables
3,956
3,865
The trade payables ageing schedule for the year ended as on March 31, 2024 and March 31, 2023 is as follows :
(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
Trade payables
3,789
167
–
–
–
3,956
3,040
825
–
–
–
3,865
Total trade payables
3,789
167
–
–
–
3,956
3,040
825
–
–
–
3,865
There are no transactions with struck off companies for the year ending March 31, 2024 and March 31, 2023.
Infosys Integrated Annual Report 2023-24
338
2.15 Other liabilities
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Non-current
Others
Accrued defined benefit liability
159
445
Others
76
55
Total non-current other liabilities
235
500
Current
Unearned revenue
7,341
7,163
Others
Withholding taxes and others
3,185
3,632
Accrued defined benefit liability
5
4
Others
8
31
Total current other liabilities
10,539
10,830
Total other liabilities
10,774
11,330
2.16 Provisions
Accounting policy
A provision is recognized if, as a result of a past event, the Group
has a present legal or constructive obligation that is reasonably
estimable, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability.
a. Post-sales client support
The Group provides its clients with a fixed-period post-sales
support on its fixed-price, fixed-timeframe contracts. Costs
associated with such support services are accrued at the time
related revenues are recorded and included in Consolidated
Statement of Profit and Loss. The Group estimates such costs
based on historical experience and estimates are reviewed on
a periodic basis for any material changes in assumptions and
likelihood of occurrence.
b. Onerous contracts
Provisions for onerous contracts are recognized when the
expected benefits to be derived by the Group from a contract
are lower than the unavoidable costs of meeting the future
obligations under the contract. Provisions for estimated losses, if
any, on incomplete contracts are recorded in the period in which
such losses become probable based on the estimated efforts or
costs to complete the contract. The provision is measured at the
present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the
contract. Before a provision is established, the Group recognizes
any impairment loss on the assets associated with that contract.
Provision for post-sales client support and other provisions
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Current
Others
Post-sales client support and other
provisions
1,796
1,307
Total provisions
1,796
1,307
The movement in the provision for post-sales client support is
as follows :
(In ₹ crore)
Particulars
Year ended
March 31, 2024
Balance at the beginning
1,307
Provision recognized / (reversed)
895
Provision utilized
(421)
Translation difference
15
Balance at the end
1,796
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 Consolidated
Statement of Profit and Loss.
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
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
339
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 comprises :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Current taxes
8,390
9,287
Deferred taxes
1,350
(73)
Income tax expense
9,740
9,214
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 :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Profit before income taxes
35,988
33,322
Enacted tax rates in India
34.94%
34.94%
Computed expected tax expense
12,576
11,644
Tax effect due to non-taxable income
for Indian tax purposes
(3,009)
(2,916)
Overseas taxes
1,128
1,060
Tax provision (reversals)
(937)
(106)
Effect of exempt non-operating
income
(49)
(52)
Effect of unrecognized deferred tax
assets
203
109
Effect of differential tax rates
(568)
(329)
Effect of non-deductible expenses
165
153
Others
231
(349)
Income tax expense
9,740
9,214
The applicable Indian corporate statutory tax rate for the years
ended March 31, 2024 and March 31, 2023 is 34.94% each.
Income tax expense for the year ended March 31, 2024 and
March 31, 2023 includes reversal (net of provisions) of ₹937
crore and ₹106 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.
During the year ended March 31, 2024, the Company received
orders under Sections 250 and 254 of the Income-tax Act, 1961,
from the Income Tax Authorities in India for the assessment
years, 2007-08 to 2015-16, 2017-18 and 2018-19. These orders
confirmed the Company's position with respect to tax treatment
of certain contentious matters. As a result, interest income (pre-
tax) of ₹1,933 crore was recognized and provision for income
tax aggregating ₹525 crore was reversed with a corresponding
credit to the Statement of Profit and Loss. Also, upon resolution
of the disputes, an amount aggregating to ₹1,628 crore has been
reduced from contingent liabilities.
The foreign tax expense is due to income taxes payable overseas
principally in the United States. In India, the Group has benefited
from certain tax incentives that the Government of India had
provided for export of software and services from the units
registered under the Special Economic Zones (SEZs) Act, 2005.
SEZ units which began the provision of services on or after April
1, 2005 are eligible for a deduction of 100% of profits or gains
derived from the export of services for the first five years from
the financial year in which the unit commenced the provision
of services and 50% of such profits or gains for 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. (Refer to Special
Economic Zone Re-investment reserve under Note 2.12 Equity)
Deferred income tax for the year ended March 31, 2024 and
March 31, 2023 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, 2024, Infosys' US branch net assets amounted to
approximately ₹7,844 crore. As at March 31, 2024, the Company
has a deferred tax liability for Branch Profit Tax of ₹269 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 ₹10,776 crore and ₹10,948
crore as at March 31, 2024 and March 31, 2023, 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.
Infosys Integrated Annual Report 2023-24
340
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 ₹4,668 crore and ₹4,423 crore as at March
31, 2024 and March 31, 2023, 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,
2024 are as follows :
(In ₹ crore)
Year
As at
March 31, 2024
2025
13
2026
202
2027
128
2028
467
2029
684
Thereafter
3,174
Total
4,668
The details of expiration of unused tax losses as at March 31,
2023 were as follows :
(In ₹ crore)
Year
As at
March 31, 2023
2024
122
2025
138
2026
146
2027
88
2028
494
Thereafter
3,435
Total
4,423
The details of income tax assets and income tax liabilities as at
March 31, 2024 and March 31, 2023 are as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Income tax assets
9,442
6,459
Current income tax liabilities
3,585
3,384
Net current income tax asset /
(liability) at the end
5,857
3,075
The gross movement in the current income tax assets / (liabilities)
for the year ended March 31, 2024 and March 31, 2023 is
as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Net current income tax asset /
(liability) at the beginning
3,075
3,545
Translation differences
–
1
Income tax paid
9,231
8,794
Interest on income tax refund
1,934
–
Current income tax expense
(8,390)
(9,287)
Income tax benefit arising on exercise
of stock options
3
51
Additions through business
combination
–
(12)
Tax impact on buyback expenses
–
9
Income tax on other comprehensive
income
4
(24)
Impact on account of Ind AS 37
adoption
–
(2)
Net current income tax asset /
(liability) at the end
5,857
3,075
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
341
The movement in gross deferred income tax assets / liabilities (before set off) for the year ended March 31, 2024 is as follows :
(In ₹ crore)
Particulars
Carrying
value as at
April 1, 2023
Changes
through
profit and
loss
Addition
through
business
combination
Impact on
account of
Ind AS 37
adoption
Changes
through OCI
Translation
difference
Carrying
value as at
March 31,
2024
Deferred income tax assets / (liabilities)
Property, plant and equipment
169
75
–
–
–
–
244
Lease liabilities
223
(25)
–
–
–
–
198
Accrued compensation to employees
68
(6)
–
–
–
–
62
Trade receivables
261
(40)
–
–
–
2
223
Compensated absences
576
50
–
–
–
1
627
Post-sales client support
248
(192)
–
–
–
–
56
Credits related to branch profits
718
84
–
–
–
9
811
Derivative financial instruments
–
(7)
–
–
(4)
–
(11)
Intangible assets
62
1
–
–
–
1
64
Intangibles arising on business
combinations
(344)
63
–
–
–
(1)
(282)
Branch profit tax
(866)
(202)
–
–
–
(12)
(1,080)
SEZ re-investment reserve
(1,351)
(645)
–
–
–
–
(1,996)
Interest receivable on income tax refund
–
(487)
–
–
–
–
(487)
Others
261
(19)
–
–
(4)
(7)
231
Total deferred income tax assets /
(liabilities)
25
(1,350)
–
–
(8)
(7)
(1,340)
The movement in gross deferred income tax assets / liabilities (before set off) for the year ended March 31, 2023 was as follows :
(In ₹ crore)
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
Carrying
value as at
March 31,
2023
Deferred income tax assets / (liabilities)
Property, plant and equipment
156
17
–
–
–
(4)
169
Lease liabilities
180
43
–
–
–
–
223
Accrued compensation to employees
51
15
–
–
–
2
68
Trade receivables
213
48
–
–
–
–
261
Compensated absences
529
47
–
–
–
–
576
Post-sales client support
131
114
–
2
–
1
248
Credits related to branch profits
676
(13)
–
–
–
55
718
Derivative financial instruments
(25)
22
–
–
2
1
–
Intangible assets
49
8
–
–
–
5
62
Intangibles arising on business
combinations
(308)
70
(80)
–
–
(26)
(344)
Branch profit tax
(834)
35
–
–
–
(67)
(866)
SEZ re-investment reserve
(852)
(499)
–
–
–
–
(1,351)
Others
90
166
(1)
–
–
6
261
Total deferred income tax assets /
(liabilities)
56
73
(81)
2
2
(27)
25
Infosys Integrated Annual Report 2023-24
342
The deferred income tax assets and liabilities are as follows :
Particulars
Year ended March 31,
2024
2023
Deferred income tax assets after set
off
454
1,245
Deferred income tax liabilities after
set off
(1,794)
(1,220)
In assessing the reliability of deferred income tax assets, the
management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon
the generation of future taxable income during the periods
in which the temporary differences become deductible. The
management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income, and tax
planning strategies in making this assessment. Based on the level
of historical taxable income and projections for future taxable
income over the periods in which the deferred income tax assets
are deductible, the Management believes that the Group will
realize the benefits of those deductible differences. The amount
of the deferred income tax assets considered realizable, however,
could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.
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
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 are classified as
contract liabilities (which we refer to as unearned revenues).
In arrangements for software development and related
services and maintenance services, by applying the revenue
recognition criteria for each distinct performance obligation,
the arrangements with customers generally meet the criteria
for considering software development and related services as
distinct performance obligations. For allocating the transaction
price, the Group measures the revenue in respect of each
performance obligation of a contract at its relative standalone
selling price. The price that is regularly charged for an item
when sold separately is the best evidence of its standalone
selling price. In cases where the Group is unable to determine
the standalone selling price, the Group uses the expected cost
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
343
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 as the implementation is performed.
Revenue from client training, support and other services arising
due to the sale of software products is recognized as the
performance obligations are satisfied. ATS revenue is recognized
ratably on a straight-line basis over the period in which the
services are rendered.
Contracts with customers includes subcontractor services or
third-party vendor equipment or software in certain integrated
services arrangements. In these types of arrangements, revenue
from sales of third-party vendor products or services is recorded
net of costs when the Group is acting as an agent between
the customer and the vendor, and gross when the Group is
the principal for the transaction. In doing so, the Group first
evaluates whether it obtains control of the specified goods or
services before they are transferred to the customer. The Group
considers whether it is primarily responsible for fulfilling the
promise to provide the specified goods or services, inventory
risk, pricing discretion and other factors to determine whether it
controls the specified goods or services and therefore, is acting
as a principal or an agent.
A contract modification is a change in the scope or price or both
of a contract that is approved by the parties to the contract.
A contract modification that results in the addition of distinct
performance obligations are accounted for either as a separate
contract if the additional services are priced at the standalone
selling price or as a termination of the existing contract and
creation of a new contract if they are not priced at the standalone
selling price. If the modification does not result in a distinct
performance obligation, it is accounted for as part of the existing
contract on a cumulative catch-up basis.
The incremental costs of obtaining a contract (i.e., costs
that would not have been incurred if the contract had not
been obtained) are recognized as an asset if the Group
expects to recover them.
Certain eligible, non-recurring costs (e.g. set-up or transition
or transformation costs) that do not represent a separate
performance obligation are recognized as an asset when
such costs (a) relate directly to the contract; (b) generate
or enhance resources of the Group that will be used in
satisfying the performance obligation in the future; and (c) are
expected to be recovered.
Capitalized contract costs relating to upfront payments to
customers are amortized to revenue and other capitalized costs
are amortized to expenses over the respective contract life
on a systematic basis consistent with the transfer of goods or
services to customer to which the asset relates. Capitalized costs
are monitored regularly for impairment. Impairment losses are
recorded when present value of projected remaining operating
cash flows is not sufficient to recover the carrying amount of
the capitalized costs.
The Group presents revenues net of indirect taxes in its
Consolidated Statement of Profit and Loss.
Revenue from operations for the year ended March 31, 2024 and
March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Revenue from software services
145,285
137,575
Revenue from products and platforms
8,385
9,192
Total revenue from operations
153,670
146,767
Products and platforms
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.
Disaggregated revenue information
Revenue disaggregation by business segments has been
included in segment information (Refer to Note 2.26). The table
below presents disaggregated revenues from contracts with
customers by geography and contract type. The Group believes
that this disaggregation best depicts how the nature, amount,
timing and uncertainty of revenues and cash flows are affected
by industry, market and other economic factors.
Infosys Integrated Annual Report 2023-24
344
For the year ended March 31, 2024 and March 31, 2023 :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Revenues by geography*
North America
92,411
90,724
Europe
42,267
37,675
India
3,881
3,861
Rest of the World
15,111
14,507
Total
1,53,670
1,46,767
* Geographical revenue is based on the domicile of customer
The percentage of revenue from fixed-price contracts for
each of the year ended March 31, 2024 and March 31, 2023 is
approximately 53% and 52%, 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.
The Group’s receivables are rights to consideration that are
unconditional. Unbilled revenues comprising revenues in excess
of billings from time and material contracts and fixed-price
maintenance contracts are classified as financial asset when
the right to consideration is unconditional and is due only
after a passage of time.
Invoicing to the clients for other fixed-price contracts is based on
milestones as defined in the contract and therefore the timing of
revenue recognition is different from the timing of invoicing to
the customers. Therefore, unbilled revenues for other fixed-price
contracts (contract asset) are classified as non-financial asset
because the right to consideration is dependent on 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 year ended March 31, 2024 and March 31, 2023, the
Company recognized revenue of ₹5,432 crore and ₹5,387 crore
arising from opening unearned revenue as of April 1, 2023 and
April 1, 2022, respectively.
During the year ended March 31, 2024 and March 31, 2023,
₹7,023 crore and ₹5,950 crore of unbilled revenue pertaining
to other fixed-price and fixed-time frame contracts as
of April 1, 2023 and April 1, 2022, 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, 2024, other
than those meeting the exclusion criteria mentioned above,
is ₹90,658 crore. Out of this, the Group expects to recognize
revenue of around 53.0% 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, 2023 was ₹80,867 crore. The contracts can generally
be terminated by the customers and typically includes an
enforceable termination penalty payable by them. Generally,
customers have not terminated contracts without cause.
2.19 Other income, net
Accounting policy
Other income is comprised primarily of interest income, dividend
income, gain / loss on investment and exchange gain / loss on
forward and options contracts and on translation of 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, Danske IT 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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
345
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).
Goodwill and fair value adjustments arising on the acquisition
of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the exchange rate in effect at
the Balance Sheet date.
Government grant
The Group recognizes government grants only when there is
reasonable assurance that the conditions attached to them 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 are intended to compensate.
Other income for the year ended March 31, 2024 and
March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Interest income on financial assets
carried at amortized cost
Tax-free bonds and government
bonds
131
149
Deposit with bank and others
929
712
Interest income on financial assets
carried at fair value through other
comprehensive income
Non-convertible debentures,
commercial paper, certificates of
deposit and government securities
1,007
955
Income on investments carried at fair
value through profit or loss:
Gain / (loss) on liquid mutual funds
and other investments
285
148
Income on investments carried at fair
value through other comprehensive
income
-
1
Interest on income tax refund
1,965
3
Exchange gains / (losses) on forward
and options contracts
100
(647)
Exchange gains / (losses) on translation
of other assets and liabilities
87
1,062
Miscellaneous income, net
207
318
Total other income
4,711
2,701
2.20 Expenses
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Employee benefit expenses
Salaries including bonus
79,315
75,239
Contribution to provident and
other funds
2,213
2,143
Share-based payments to
employees (Refer to Note 2.12)
652
519
Staff welfare
440
458
82,620
78,359
Cost of software packages and others
For own use
2,145
1,937
Third party items bought for
service delivery to clients
11,370
8,965
13,515
10,902
Other expenses
Repairs and maintenance
1,278
1,208
Power and fuel
199
176
Brand and marketing
1,007
905
Rates and taxes
326
299
Consumables
170
158
Insurance
210
174
Provision for post-sales client
support and others
75
120
Commission to non-whole time
directors
16
15
Impairment loss recognized /
(reversed) under expected credit
loss model
121
283
Contributions towards Corporate
Social Responsibility
533
471
Others
781
583
4,716
4,392
Infosys Integrated Annual Report 2023-24
346
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.
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.
The 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.
The ROU assets are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts
may not be recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating Unit
(CGU) to which the asset belongs.
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 if whether it will exercise an
extension or a termination option.
Lease liability and ROU assets have been separately presented
in the Balance Sheet and lease payments have been classified as
financing cash flows.
The Group as a lessor
Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified
as operating leases.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified
as a finance or operating lease by reference to the 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 ROU assets for the year ended March 31, 2024 are as follows :
(In ₹ crore)
Particulars
Category of ROU asset
Total
Land
Buildings
Vehicles
Computers
Balance as of April 1, 2023
623
3,896
15
2,348
6,882
Additions*
–
394
12
1,872
2,278
Deletions
(10)
(181)
(1)
(755)
(947)
Impairment#
–
(88)
–
–
(88)
Depreciation
(6)
(728)
(10)
(851)
(1,595)
Translation difference
(2)
5
1
18
22
Balance as of March 31, 2024
605
3,298
17
2,632
6,552
*
Net of adjustments on account of modifications and lease incentives
#
Includes under other expenses. Refer to Note 2.20
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
347
The changes in the carrying value of ROU assets for the year ended March 31, 2023 were as follows :
(In ₹ crore)
Particulars
Category of ROU asset
Total
Land
Buildings
Vehicles
Computers
Balance as of April 1, 2022
628
3,711
16
468
4,823
Additions*
–
847
8
2,646
3,501
Deletions
–
(45)
–
(364)
(409)
Depreciation
(6)
(671)
(10)
(499)
(1,186)
Translation difference
1
54
1
97
153
Balance as of March 31, 2023
623
3,896
15
2,348
6,882
* 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, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Current lease liabilities
1,959
1,242
Non-current lease liabilities
6,400
7,057
Total
8,359
8,299
The movement in lease liabilities during the year ended
March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Balance at the beginning
8,299
5,474
Additions
2,190
3,503
Deletions
(444)
(49)
Finance cost accrued during the
period
326
245
Payment of lease liabilities
(2,030)
(1,241)
Translation difference
18
367
Balance at the end
8,359
8,299
The details regarding the contractual maturities of lease liabilities
as at March 31, 2024 and March 31, 2023 on an undiscounted
basis are as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Less than one year
2,152
1,803
One to five years
6,123
5,452
More than five years
994
1,978
Total
9,269
9,233
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 ₹97 crore
and ₹92 crore for the year ended March 31, 2024 and
March 31, 2023, respectively.
The movement in the net investment in sublease of ROU
assets during the year ended March 31, 2024 and March 31,
2023 is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Balance at the beginning
358
372
Additions
–
6
Deletions
(346)
–
Interest income accrued during the
period
–
13
Lease receipts
(3)
(63)
Translation difference
–
30
Balance at the end
9
358
Leases not yet commenced to which Group is committed is
₹497 crore for a lease term ranging from three years to
eight years.
Infosys Integrated Annual Report 2023-24
348
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
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
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
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 external
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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
349
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, 2024
and March 31, 2023 are as follows :
(In ₹ crore)
Particulars
Gratuity
Pension
As at March 31,
As at March 31,
2024
2023
2024
2023
Change in benefit obligations
Benefit obligations at the beginning
1,778
1,722
917
926
Transfer
29
–
–
19
Service cost
307
276
54
41
Interest expense
121
103
20
5
Remeasurements – Actuarial (gains) / losses
34
(72)
24
(143)
Past service cost – plan amendments
–
(1)
(33)
–
Employee contribution
–
–
34
27
Benefits paid
(154)
(268)
(10)
(46)
Translation difference
1
18
14
88
Benefit obligations at the end
2,116
1,778
1,020
917
Change in plan assets
Fair value of plan assets at the beginning
1,755
1,711
870
846
Transfer
–
–
–
19
Interest income
127
105
20
4
Remeasurements – Return on plan assets excluding
amounts included in interest income
18
24
16
(95)
Employer contribution
328
175
51
37
Employee contribution
–
–
34
27
Benefits paid
(149)
(260)
(10)
(46)
Translation difference
–
–
10
78
Fair value of plan assets at the end
2,079
1,755
991
870
Funded status
(37)
(23)
(29)
(47)
Defined benefit plan asset (Refer to Note 2.10)
16
23
15
13
Defined benefit plan liability (Refer to Note 2.15)
(53)
(46)
(44)
(60)
The amounts for the year ended March 31, 2024 and March 31, 2023 recognized in the Consolidated Statement of Profit and Loss under
employee benefit are as follows :
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Service cost
307
276
54
41
Net interest on the net defined benefit liability / (asset)
(6)
(2)
–
1
Plan amendments
–
(1)
(33)
–
Net cost
301
273
21
42
Infosys Integrated Annual Report 2023-24
350
The amounts for the year ended March 31, 2024 and March 31, 2023 recognized in the Consolidated Statement of Other Comprehensive
Income are as follows :
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Remeasurements of the net defined benefit liability /
(asset)
Actuarial (gains) / losses
34
(72)
24
(143)
(Return) / loss on plan assets excluding amounts
included in the net interest on the net defined benefit
liability / (asset)
(18)
(24)
(16)
95
16
(96)
8
(48)
The break-up of actuarial (gains) / losses for the year ended March 31, 2024 and March 31, 2023 is as follows :
(In ₹ crore)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
(Gain) / loss from change in demographic assumptions
–
–
–
–
(Gain) / loss from change in financial assumptions
10
(62)
24
(148)
(Gain) / loss from experience adjustment
24
(10)
-
5
34
(72)
24
(143)
The weighted-average assumptions used to determine benefit obligations as at March 31, 2024 and March 31, 2023 are as follows :
Particulars
Gratuity
Pension
As at March 31,
As at March 31,
2024
2023
2024
2023
Discount rate (in %)(1)
7.0
7.1
1.5-3.4
1.8- 3.8
Weighted average rate of increase in
compensation levels (in %)(2)
6.0
6.0
1-3
1-3
Weighted average duration of defined
benefit obligation(3)
5.8 years
5.9 years
12 years
12 years
The weighted-average assumptions used to determine net periodic benefit cost for the year ended March 31, 2024 and March 31,
2023 are as follows :
(In %)
Particulars
Gratuity
Pension
Year ended March 31,
Year ended March 31,
2024
2023
2024
2023
Discount rate
7.1
6.5
1.8-3.8
0.4-1.7
Weighted average rate of increase
in compensation levels
6.0
6.0
1-3
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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
351
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, 2024 and March 31, 2023, 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 diversified and
provide for guaranteed interest rates arrangements.
Actual return on assets (including remeasurements) of the
gratuity plan for the year ended March 31, 2024 and March 31,
2023 were ₹145 crore and ₹129 crore, respectively and for the
pension plan were ₹36 crore and ₹(91) 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, 2024 and March 31, 2023 are as follows :
(In %)
Particulars
Pension
As at March 31,
2024
2023
Equity
34
34
Bonds
32
32
Real estate / property
26
26
Cash and cash equivalents
1
1
Other
7
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
by 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
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 :
(In ₹ crore)
Impact from
As at March 31, 2024
Gratuity
Pension
1% point
increase /
decrease
0.5% point
increase /
decrease
Discount rate
112
43
Weighted average rate of increase in
compensation levels
103
7
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 ₹335 crore to gratuity and
₹45 crore to pension during the fiscal 2025.
The maturity profile of defined benefit obligation is as follows :
(In ₹ crore)
Particulars
Gratuity
Pension
Within 1 year
316
62
1-2 years
311
67
2-3 years
338
65
3-4 years
417
70
4-5 years
444
65
5-10 years
2,122
332
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 2023-24
352
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, 2024 and March 31, 2023
is as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Change in benefit obligations
Benefit obligations at the beginning
10,527
9,304
Service cost
880
814
Employee contribution
1,652
1,689
Interest expense
764
625
Actuarial (gains) / loss
96
(82)
Benefits paid
(2,040)
(1,823)
Benefit obligations at the end
11,879
10,527
Change in plan assets
Fair value of plan assets at the
beginning
10,184
9,058
Interest income
740
609
Remeasurements – Return on plan
assets excluding amounts included in
interest income
234
(186)
Employer contribution
1,042
837
Employee contribution
1,652
1,689
Benefits paid
(2,040)
(1,823)
Fair value of plan assets at the end
11,812
10,184
Net liability (Refer to Note 2.15)
(67)
(343)
The amounts for the year ended March 31, 2024 and March
31, 2023 recognized in the consolidated statement of
comprehensive income are as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Service cost
880
814
Net interest on the net defined benefit
liability / asset
24
16
Net provident fund cost
904
830
The amounts for the year ended March 31, 2024 and
March 31, 2023 recognized in the Consolidated Statement of
Other Comprehensive Income are as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Remeasurements of the net defined
benefit liability / (asset)
Actuarial (gains) / losses
96
(82)
Particulars
Year ended March 31,
2024
2023
(Return) / loss on plan assets excluding
amounts included in the net interest
on the net defined benefit liability /
(asset)
(234)
186
(138)
104
The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows:
Particulars
As at March 31,
2024
2023
Government of India (GOI) bond yield
(1)
7.00%
7.10%
Expected rate of return on plan assets
8.20%
8.15%
Remaining term to maturity of
portfolio
6 years
6 years
Expected guaranteed interest rate
8.25%
8.15%
(1) In India, the market for high quality corporate bonds being not
developed, the yield of government bonds is considered as the discount
rate. The tenure has been considered taking into account the past long-
term trend of employees’ average remaining service life which reflects the
average estimated term of the post-employment benefit obligations.
The break-up of the plan assets into various categories as at
March 31, 2024 and March 31, 2023 is as follows :
(In %)
Particulars
As at March 31,
2024
2023
Central and state government bonds
60
60
Public sector undertakings and Private
sector bonds
30
33
Others
10
7
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, 2024, the defined benefit obligation would
be affected by approximately ₹66 crore and ₹110 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Group contributed ₹1,257 crore and ₹1,193 crore to the
provident fund during the year ended March 31, 2024 and
March 31, 2023, 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.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
353
2.22.3 Superannuation
The Group contributed ₹513 crore and ₹487 crore during the
year ended March 31, 2024 and March 31, 2023, respectively and
the same has been recognized in the Consolidated Statement of
Profit and Loss under the head employee benefit expense.
2.22.4 Employee benefit costs include
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Salaries and bonus(1)
80,532
76,365
Defined contribution plans
670
627
Defined benefit plans
1,418
1,367
82,620
78,359
(1) Includes employee stock compensation expense of ₹652 crore and ₹519
crore for the year ended March 31, 2024 and March 31, 2023, 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,
2024
2023
Basic earnings per equity share
– weighted average number of
equity shares outstanding(1)
413,85,68,090
418,08,97,857
Effect of dilutive common
equivalent shares – share
options outstanding
61,12,335
68,33,213
Particulars
Year ended March 31,
2024
2023
Diluted earnings per equity
share – weighted average
number of equity shares and
common equivalent shares
outstanding
414,46,80,425 418,77,31,070
(1) excludes treasury shares
For the year ended March 31, 2024 and March 31, 2023, there
were 1,19,711 and 9,960 options to purchase equity shares which
had an anti-dilutive effect.
2.24 Contingent liabilities and commitments
Accounting policy
Contingent liability is a possible obligation arising from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or a present
obligation that arises from past events but is not recognized
because it is not probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation or the amount of the obligation cannot be measured
with sufficient reliability.
2.24.1 Contingent liability
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Contingent liabilities :
Claims against the Group, not
acknowledged as debts(1)
3,583
4,762
[Amount paid to statutory authorities
₹8,754 crore (₹6,539 crore)]
(1) As at March 31, 2024 and March 31, 2023, claims against the Group not
acknowledged as debts in respect of income tax matters amounted to
₹2,794 crore and ₹4,062 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 issues of disallowance of expenditure
towards software being held as capital in nature, payments made to
associated enterprises held as liable for withholding of taxes, among
others. 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 ₹8,743 crore and ₹6,528 crore as at March 31, 2024 and March 31, 2023,
respectively.
Infosys Integrated Annual Report 2023-24
354
2.24.2 McCamish Cybersecurity incident
In November 2023, Infosys McCamish Systems (McCamish),
a step-down subsidiary of Infosys Limited, experienced a
cybersecurity incident resulting in the non-availability of certain
applications and systems. McCamish initiated its incident
response and engaged cybersecurity and other specialists
to assist in its investigation of and response to the incident
and remediation and restoration of impacted applications
and systems. By December 31, 2023, McCamish, with external
specialists’ assistance, substantially remediated and restored the
affected applications and systems.
Loss of contracted revenues and costs incurred with respect to
remediations, restoration, communication efforts, investigative
processes and analysis, legal services and others amounted to
$38 million (approximately ₹316 crore).
Actions taken by McCamish included investigative analysis
conducted by a third-party cybersecurity firm to determine,
among other things, whether and the extent to which company
or customer data was subject to unauthorized access or
exfiltration. McCamish also engaged a third-party eDiscovery
vendor in assessing the extent and nature of such data.
McCamish in coordination with its third-party eDiscovery vendor
has identified corporate customers and individuals whose
information was subject to unauthorized access and exfiltration.
McCamish’s review process is ongoing. McCamish may incur
additional costs including indemnities or damages / claims,
which are indeterminable at this time.
On March 6, 2024, a class action complaint was filed in the
U.S. District Court for the Northern District of Georgia against
McCamish . The complaint arises out of the cybersecurity
incident at McCamish initially disclosed on November 3, 2023.
The complaint was purportedly filed on behalf of all individuals
within the United States whose personally identifiable
information was exposed to unauthorized third parties as a
result of the incident.
2.24.3 Legal proceedings
Apart from this, 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 such ordinary
course legal actions, when ultimately concluded and determined,
will not have a material and adverse effect on the Group’s results
of operations or financial condition.
2.24.4 Commitments
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Commitments :
Estimated amount of contracts
remaining to be executed on capital
contracts and not provided for (net of
advances and deposits)(1)
780
959
Other commitments*
79
92
1) Capital contracts primarily comprises of commitments for infrastructure
facilities and computer equipment.
*
Uncalled capital pertaining to investments.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
355
2.25 Related party transactions
List of related parties
(In %)
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
Infosys Technologies (China) Co. Limited (Infosys China) (1)
China
100
100
Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) (1)
Mexico
100
100
Infosys Technologies (Sweden) AB (Infosys Sweden) (1)
Sweden
100
100
Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai) (1)
China
100
100
EdgeVerve Systems Limited (EdgeVerve) (1)
India
100
100
Infosys Austria GmbH (1)
Austria
100
100
Skava Systems Private Limited (Skava Systems) (1)(22)
India
100
100
Infosys Chile SpA (1)
Chile
100
100
Infosys Arabia Limited (2)(22)
Saudi Arabia
70
70
Infosys Consulting Ltda. (1)
Brazil
100
100
Infosys Luxembourg S.a.r.l (1)
Luxembourg
100
100
Infosys Americas Inc. (Infosys Americas) (1)(30)
US
–
100
Infosys Consulting S.R.L. (1)(19)
Argentina
100
100
Infosys Consulting S.R.L. (1)
Romania
100
100
Infosys Limited Bulgaria EOOD (1)
Bulgaria
100
100
Infosys Turkey Bilgi Teknolojileri Limited Sirketi (1)
Turkey
100
100
Infosys Germany Holding Gmbh (1)
Germany
100
100
Infosys Automotive and Mobility GmbH & Co. KG (1)
Germany
100
100
Infosys Green Forum (1)
India
100
100
Infosys Business Solutions LLC (1)
Qatar
100
100
WongDoody Inc. (1)
US
100
100
Danske IT and Support Services India Private Limited (Danske IT) (1)(32)
India
100
–
Infosys Public Services, Inc. USA (Infosys Public Services) (1)
US
100
100
Infosys Public Services Canada Inc. (12)(23)
Canada
100
100
Infosys BPM Limited (1)
India
100
100
Infosys BPM UK Limited (3)
UK
100
100
Infosys (Czech Republic) Limited s.r.o. (3)
Czech Republic
100
100
Infosys Poland Sp z.o.o (3)
Poland
100
100
Infosys McCamish Systems LLC (3)
US
100
100
Portland Group Pty Ltd (3)
Australia
100
100
Infosys BPO Americas LLC. (3)
US
100
100
Infosys BPM Canada Inc (3)(31)(36)
Canada
–
–
Panaya Inc. (Panaya) (1)
US
100
100
Panaya Ltd. (4)
Israel
100
100
Panaya Germany GmbH (4)(27)
Germany
100
100
Brilliant Basics Holdings Limited (Brilliant Basics) (1)(22)
UK
100
100
Brilliant Basics Limited (5)(22)
UK
100
100
Infosys Consulting Holding AG (1)
Switzerland
100
100
Infosys Management Consulting Pty Limited (6)
Australia
100
100
Infosys Consulting AG (6)
Switzerland
100
100
Infosys Integrated Annual Report 2023-24
356
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
Infosys Consulting GmbH (6)
Germany
100
100
Infosys Consulting SAS (6)
France
100
100
Infy Consulting B.V. (6)
The Netherlands
100
100
Infosys Consulting (Belgium) NV (6)
Belgium
100
100
Infy Consulting Company Ltd (6)
UK
100
100
GuideVision s.r.o. (7)
Czech Republic
100
100
GuideVision Deutschland GmbH (8)
Germany
100
100
GuideVision Suomi Oy (8)
Finland
100
100
GuideVision Magyarország Kft (8)
Hungary
100
100
GuideVision Polska Sp. z.o.o (8)
Poland
100
100
GuideVision UK Ltd (8)(22)
UK
100
100
Infosys Nova Holdings LLC. (Infosys Nova) (1)
US
100
100
Outbox systems Inc. dba Simplus (US) (9)
US
100
100
Simplus ANZ Pty Ltd. (10)
Australia
100
100
Simplus Australia Pty Ltd (11)
Australia
100
100
Simplus Philippines, Inc. (10)
Philippines
100
100
Kaleidoscope Animations, Inc. (9)
US
100
100
Kaleidoscope Prototyping LLC (18)(34)
US
–
100
Blue Acorn iCi Inc (formerly Beringer Commerce Inc) (9)
US
100
100
Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (1)
Singapore
100
100
Infosys Financial Services GmbH. (formerly Panaya GmbH) (13)(29)
Germany
100
100
Infosys South Africa (Pty) Ltd (13)
South Africa
100
100
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International
(Malaysia) Sdn. Bhd.) (13)
Malaysia
100
100
Infosys Middle East FZ LLC (13)
Dubai
100
100
Infosys Norway (13)(28)
Norway
100
100
Infosys Compaz Pte. Ltd (14)
Singapore
60
60
HIPUS Co., Ltd (14)
Japan
81
81
Fluido Oy (13)
Finland
100
100
Fluido Sweden AB (15)
Sweden
100
100
Fluido Norway A/S (15)
Norway
100
100
Fluido Denmark A/S (15)
Denmark
100
100
Fluido Slovakia s.r.o (15)
Slovakia
100
100
Infosys Fluido UK, Ltd. (15)
UK
100
100
Infosys Fluido Ireland, Ltd. (16)
Ireland
100
100
Stater N.V. (14)
The Netherlands
75
75
Stater Nederland B.V. (17)
The Netherlands
75
75
Stater XXL B.V. (17)
The Netherlands
75
75
HypoCasso B.V. (17)
The Netherlands
75
75
Stater Participations B.V. (35)
The Netherlands
–
75
Stater Belgium N.V./S.A. (17)(35)
Belgium
75
75
Stater Gmbh(17)
Germany
75
75
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (13)
Germany
100
100
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
357
Name of subsidiaries
Country
Holdings as at March 31,
2024
2023
WongDoody Gmbh (formerly known as oddity GmbH) (20)
Germany
100
100
WongDoody (Shanghai) Co. Limited (formerly known as oddity (Shanghai) Co., Ltd.) (21)
China
100
100
WongDoody limited (Taipei) (formerly known as oddity Limited (Taipei)) (21)
Taiwan
100
100
oddity space GmbH (20)(33)
Germany
–
100
oddity jungle GmbH (20)(33)
Germany
–
100
oddity code GmbH (20)(33)
Germany
–
100
WongDoody d.o.o (formerly known as oddity code d.o.o) (21)(33)
Serbia
100
100
oddity waves GmbH (20)(33)
Germany
–
100
oddity group services GmbH (20)(33)
Germany
–
100
BASE life science A/S (13)(24)
Denmark
100
100
BASE life science AG (25)
Switzerland
100
100
BASE life science GmbH (25)
Germany
100
100
BASE life science S.A.S (25)
France
100
100
BASE life science Ltd. (25)
UK
100
100
BASE life science S.r.l. (25)
Italy
100
100
Innovisor Inc. (25)
US
100
100
BASE life science Inc. (25)
US
100
100
BASE life science S.L. (25)(26)
Spain
100
100
(1) Wholly-owned subsidiary of Infosys Limited
(2) Majority-owned and controlled subsidiary of Infosys Limited
(3) Wholly-owned subsidiary of Infosys BPM Limited
(4) Wholly-owned subsidiary of Panaya Inc.
(5) Wholly-owned subsidiary of Brilliant Basics Holding Limited.
(6) Wholly-owned subsidiary of Infosys Consulting Holding AG
(7) Wholly-owned subsidiary of Infy Consulting Company Limited
(8) Wholly-owned subsidiary of GuideVision s.r.o.
(9) Wholly-owned subsidiary of Infosys Nova Holdings LLC
(10) Wholly-owned subsidiary of Outbox systems Inc. dba Simplus (US)
(11) Wholly-owned subsidiary of Simplus ANZ Pty Ltd
(12) Wholly-owned subsidiary of Infosys Public Services, Inc.
(13) Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.)
(14) Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd.
(formerly Infosys Consulting Pte. Ltd.)
(15) Wholly-owned subsidiary of Fluido Oy
(16) Wholly-owned subsidiary of Infosys Fluido UK, Ltd.
(17) Wholly-owned subsidiary of Stater N.V.
(18) Wholly-owned subsidiary of Kaleidoscope Animations, Inc.
(19) 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.
(20) 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 WongDoody Gmbh
(formerly known as oddity GmbH).
(21) Wholly-owned subsidiary of WongDoody Gmbh (formerly known as oddity
GmbH)
(22) Under liquidation
(23) Incorporated on July 8, 2022
(24) 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.
(25) Wholly-owned subsidiary of BASE life science A/S
(26) Incorporated on September 6, 2022
(27) Incorporated effective December 15, 2022
(28) Incorporated effective September 22, 2022
(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) Liquidated effective July 14, 2023
(31) Incorporated on August 11, 2023
(32) On September 1, 2023, Infosys Limted acquired 100% of voting interests
in Danske IT and Support Services India Private Limited (Danske IT).
Danske IT and Support Services India Private Limited renamed as Idunn
Information Technology Private Limited from April 1, 2024.
(33) On September 29, 2023, oddity space GmbH, oddity waves GmbH,
oddity jungle GmbH, oddity group services GmbH and oddity code
GmbH merged into WongDoody GmbH and oddity code d.o.o which was
formerly a subsidiary of oddity code Gmbh has become a subsidiary of
WongDoody Gmbh (formerly known as oddity GmbH).
(34) Kaleidoscope Prototyping LLC, a wholly-owned subsidiary of
Kaleidoscope Animations is liquidated effective November 1, 2023.
(35) On November 24, 2023, Stater Participations B.V (A wholly-owned
subsidiary of Stater N.V.) merged with Stater N.V. and Stater Belgium N.V./
S.A which was formerly a wholly-owned subsidiary of Stater Participations
B.V. became a wholly-owned subsidiary of Stater N.V.
(36) On March 15, 2024, Infosys BPM Canada Inc., a wholly-owned subsidiary of
Infosys BPM Limited got dissolved.
Infosys Integrated Annual Report 2023-24
358
List of other related party
Particulars
Country
Nature of relationship
Infosys Limited Employees' Gratuity Fund Trust
India
Post-employment benefit plan of Infosys
Infosys Limited Employees' Provident Fund Trust
India
Post-employment benefit plan of Infosys
Infosys Limited Employees' Superannuation Fund Trust
India
Post-employment benefit plan of Infosys
Infosys BPM Limited Employees' Superannuation Fund Trust
India
Post-employment benefit plan of Infosys BPM
Infosys BPM Limited Employees' Gratuity Fund Trust
India
Post-employment benefit plan of Infosys BPM
EdgeVerve Systems Limited Employees' Gratuity Fund Trust
India
Post-employment benefit plan of EdgeVerve
EdgeVerve Systems Limited Employees' Superannuation Fund Trust
India
Post-employment benefit plan of EdgeVerve
Infosys Employees Welfare Trust
India
Controlled trust
Infosys Employee Benefits Trust
India
Controlled trust
Infosys Science Foundation
India
Controlled trust
Infosys Expanded Stock Ownership Trust
India
Controlled trust
Infosys Foundation (1)
India
Trust jointly controlled by KMPs
Refer to Note 2.22 for information on transactions with post-employment benefit plans mentioned above.
(1) During the years ended March 31, 2024 and March 31, 2023, the Group contributed ₹408 crore and ₹354 crore, respectively towards CSR.
List of key management personnel
Whole-time Directors
Salil Parekh, Chief Executive Officer and Managing Director
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 (retired as independent director
effective April 19, 2023)
Bobby Parikh
Chitra Nayak
Govind Iyer (appointed as an independent director
effective January 12, 2023)
Helene Auriol Potier (appointed as independent director
effective May 26, 2023)
Nitin Paranjpe (appointed as an additional and independent
director effective January 1, 2024)
Executive Officers
Inderpreet Sawhney, Group General Counsel and
Chief Compliance Officer
Jayesh Sanghrajka (appointed as Chief Financial Officer
effective April 1, 2024)
Nilanjan Roy (resigned as Chief Financial Officer of the Company
effective March 31, 2024)
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 was on leave till June 9, 2023 which was his last
date with the Company)
Ravi Kumar S (resigned as President effective October 11, 2022)
Company Secretary
A.G.S. Manikantha
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
359
Transaction with key management personnel:
The compensation details to key management personnel which comprise directors and executive officers are as follows :
(In ₹ crore)
Particulars
Year ended March 31,
2024
2023
Salaries and other employee benefits to whole-time directors and executive officers(1)(2)
113
111
Commission and other benefits to non-executive/independent directors
17
16
Total
130
127
(1) For the years ended March 31, 2024 and March 31, 2023, includes a charge of ₹68 crore and ₹49 crore respectively, towards employee stock compensation
expense (Refer to Note 2.12).
(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
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Amount
(In ₹ crore)
Infosys Limited
81.59
81,176
90.88
27,234
97.95
287
90.95
27,521
Indian subsidiaries
Infosys BPM Limited
3.37
3,357
2.67
799
2.73
8
2.67
807
EdgeVerve
Systems Limited
(EdgeVerve)
1.22
1,214
2.79
835
0.34
1
2.76
836
Infosys Green Forum
0.30
299
0.02
6
–
–
0.02
6
Danske IT and
Support Services India
Private Limited (Danske IT)
0.08
79
0.01
2
–
–
0.01
2
Skava Systems Pvt.
Ltd. (Skava Systems)
–
3
–
1
–
–
–
1
Foreign subsidiaries
Infosys Technologies
(China) Co.
Limited (Infosys China)
0.54
539
0.36
108
–
–
0.36
108
Infosys Technologies
S. de R. L. de
C. V. (Infosys Mexico)
0.56
561
0.14
43
–
–
0.14
43
Infosys Technologies
(Sweden)
AB. (Infosys Sweden)
0.17
174
0.18
53
–
–
0.18
53
Infosys Technologies
(Shanghai) Company
Limited (Infosys Shanghai)
0.44
441
(0.34)
(103)
–
–
(0.34)
(103)
Panaya Inc. (Panaya)
0.15
155
(0.03)
(9)
–
–
(0.03)
(9)
Infosys Nova Holdings LLC.
(Infosys Nova)
2.79
2,773
0.00
(1)
–
–
0.00
(1)
Panaya Ltd
(0.34)
(340)
0.12
36
–
–
0.12
36
Infosys Integrated Annual Report 2023-24
360
Name of entity
Net assets
Share in profit or loss
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Amount
(In ₹ crore)
Infosys Financial
Services GmbH (formerly
known as Panaya Gmbh)
0.00
3
0.00
1
–
–
–
1
Infosys Middle East FZ LLC
(0.01)
(13)
0.01
4
–
–
0.01
4
Infosys Chile SpA
0.04
37
0.06
18
–
–
0.06
18
WongDoody, Inc
0.38
375
0.18
53
–
–
0.18
53
Fluido Oy
0.13
129
(0.03)
(10)
–
–
(0.03)
(10)
Fluido Sweden AB (Extero)
0.05
53
0.10
29
–
–
0.10
29
Fluido Norway A/S
0.05
52
0.04
11
–
–
0.04
11
Fluido Denmark A/S
(0.01)
(14)
(0.05)
(14)
–
–
(0.05)
(14)
Fluido Slovakia s.r.o
0.01
6
0.00
1
–
–
–
1
Infosys Fluido UK Ltd
(0.01)
(13)
0.04
11
–
–
0.04
11
Infosys Fluido Ireland Ltd
0.00
4
0.01
2
–
–
0.01
2
Infosys
Consulting Holding AG
0.56
556
0.13
41
–
–
0.14
41
Infosys Management
Consulting Pty Ltd
0.05
53
0.06
17
–
–
0.06
17
Infosys Consulting AG
0.26
258
0.50
149
0.68
2
0.50
151
Infosys
Consulting (Belgium) NV
0.00
(4)
0.01
4
–
–
0.01
4
Infosys Consulting GmbH
0.13
128
0.13
39
–
–
0.13
39
Infosys Singapore Pte. Ltd
2.45
2,444
0.41
124
–
–
0.41
124
Infosys Consulting SAS
0.02
16
0.03
9
–
–
0.03
9
Infosys Consulting S.R.L.
(Argentina)
(0.02)
(21)
(0.06)
(18)
–
–
(0.06)
(18)
Infosys Austria GMBH
0.00
–
(0.01)
(2)
–
–
(0.01)
(2)
Infy Consulting B.V.
0.06
57
0.04
13
–
–
0.04
13
Infosys Consulting Ltda
0.14
137
0.05
16
–
–
0.05
16
Infosys Consulting S.R.L.
0.11
106
0.10
29
–
–
0.09
29
Infosys
McCamish Systems LLC
1.14
1,130
(0.20)
(60)
–
–
(0.20)
(60)
Stater N.V.
0.28
284
(0.06)
(19)
–
–
(0.06)
(19)
Stater Nederland B.V.
0.21
209
0.35
104
–
–
0.34
104
Stater XXL B.V.
–
–
0.00
–
–
–
0.00
–
HypoCasso B.V.
0.02
23
0.03
10
–
–
0.03
10
Stater Gmbh
(0.03)
(31)
(0.07)
(21)
–
–
(0.07)
(21)
Stater Belgium N.V./S.A.
0.10
98
0.03
10
–
–
0.03
10
Infosys
South Africa (Pty) Ltd
0.01
9
0.00
1
–
–
0.00
1
Infosys
Limited Bulgaria EOOD
0.01
7
0.02
5
–
–
0.02
5
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
361
Name of entity
Net assets
Share in profit or loss
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Amount
(In ₹ crore)
Kaleidoscope
Animations, Inc.
0.16
159
0.17
52
–
–
0.17
52
Blue Acorn iCi Inc
(formerly known as
Beringer Commerce Inc)
0.27
271
0.27
80
–
–
0.26
80
GuideVision, s.r.o..
0.10
106
0.13
40
–
–
0.13
40
GuideVision Deutschland
GmbH
(0.01)
(8)
(0.02)
(6)
–
–
(0.02)
(6)
GuideVision Suomi Oy
0.00
(1)
(0.01)
(3)
–
–
(0.01)
(3)
GuideVision
Magyarország Kft.
0.00
(1)
(0.01)
(2)
–
–
(0.01)
(2)
GuideVision Polska
SP. Z O.O.
–
–
–
1
–
–
–
1
GuideVision UK Ltd
–
3
–
–
–
–
–
–
Infosys
Germany Holding Gmbh
–
2
–
–
–
–
–
–
Infosys Automotive and
Mobility GmbH & Co. KG
(0.98)
(972)
(1.44)
(433)
(0.68)
(2)
(1.44)
(435)
Infosys
Turkey Bilgi Teknolojikeri
Limited Sirketi
0.00
1
(0.01)
(4)
–
–
(0.01)
(4)
Infosys Germany
GmbH (formerly Kristall
247. GmbH (“Kristall”)
(0.12)
(123)
(0.18)
(54)
–
–
(0.18)
(54)
WongDoody GmbH
(formerly known as
oddity GmbH)
0.05
52
(0.02)
(6)
–
–
(0.02)
(6)
oddity (Shanghai) Co., Ltd.
0.01
5
0.00
1
–
–
0.00
1
WongDoody limited
(Taipei) (formerly known as
oddity Limited (Taipei))
0.00
2
0.01
2
–
–
0.01
2
WongDoody d.o.o
(formerly known
as oddity code d.o.o)
0.01
5
0.01
3
–
–
0.01
3
Infosys
Business Solutions LLC
0.03
31
0.05
17
–
–
0.06
17
Panaya Germany GmbH
0.00
(2)
0.00
1
–
–
–
1
Infosys Arabia Limited
0.00
4
0.00
–
–
–
–
–
Infosys Norway
0.00
1
0.00
–
–
–
–
–
Outbox systems
Inc. dba Simplus (US)
0.11
111
0.07
20
–
–
0.07
20
Simplus Australia Pty Ltd
0.00
4
0.07
22
–
–
0.07
22
Simplus Philippines, Inc.
0.01
15
0.01
3
–
–
0.01
3
Simplus ANZ Pty Ltd.
–
–
–
–
–
–
–
–
BASE life science AG
0.03
26
0.04
12
(1.02)
(3)
0.03
9
Infosys Integrated Annual Report 2023-24
362
Name of entity
Net assets
Share in profit or loss
Share in other
comprehensive income
Share in total
comprehensive income
as % age of
consolidated
net assets
Amount
(In ₹ crore)
as % age of
consolidated
profit or loss
Amount
(In ₹ crore)
as % age of
consolidated
other
comprehensive
income
Amount
(In ₹ crore)
as % age of
consolidated
total
comprehensive
income
Amount
(In ₹ crore)
BASE life science GmbH
0.00
(4)
(0.01)
(4)
–
–
(0.01)
(4)
BASE life science A/S
(0.06)
(62)
(0.29)
(88)
–
–
(0.29)
(88)
BASE life science S.A.S
0.00
(1)
(0.01)
(2)
–
–
(0.01)
(2)
BASE life science Ltd.
0.01
5
0.01
3
–
–
0.01
3
BASE life science S.r.l.
0.00
(1)
0.00
(1)
–
–
(0.01)
(1)
Innovisor Inc.
0.00
–
0.00
–
–
–
–
–
BASE life science Inc.
0.00
(1)
0.00
(1)
–
–
–
(1)
BASE life science S.L.
0.01
7
0.02
6
–
–
0.02
6
Infosys Public
Services, Inc. USA
(Infosys Public Services)
1.38
1,369
1.15
344
–
–
1.14
344
Infosys Luxembourg S.a.r.l
0.04
38
0.05
15
–
–
0.05
15
Infosys Compaz PTE Ltd
0.21
209
0.22
66
–
–
0.22
66
Infy Consulting
Company Limited
0.25
254
0.25
75
–
–
0.25
75
Infosys Poland Sp. Z.o.o
1.02
1,015
0.45
134
–
–
0.44
134
Portland Group Pty Ltd
0.05
50
0.04
13
–
–
0.04
13
Infosys BPO Americas LLC
0.08
76
0.13
38
–
–
0.13
38
Infosys (Czech Republic)
Limited s.r.o.
0.11
108
0.01
4
–
–
0.02
4
HIPUS Co., Ltd
0.12
122
0.11
32
–
–
0.10
32
Global Enterprise
International
(Malaysia) Sdn. Bhd.
0.01
15
0.04
13
–
–
0.04
13
Infosys BPM UK Limited
–
1
–
–
–
–
–
–
Infosys Public
Services Canada Inc.
0.03
25
0.04
13
–
–
0.05
13
Brilliant
Basics Holdings Limited
0.07
66
–
1
–
–
–
1
Brilliant Basics Limited
–
1
–
–
–
–
–
–
Subtotal
100.00
99,492
100.00
29,968
100.00
293
100.00
30,261
Adjustment arising
out of consolidation
(11,269)
(3,678)
228
(3,450)
Controlled trusts
(107)
(57)
–
(57)
88,116
26,233
521
26,754
Non-controlling interests
345
15
(1)
14
Total
88,461
26,248
520
26,768
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
363
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, 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, 2024 and March 31, 2023 :
(In ₹ crore)
Particulars
Financial
Services (1)*
Retail (2)
Communication(3)
Energy,
Utilities,
Resources
and
Services
Manufacturing
Hi-Tech
Life
Sciences (4)
All other
segments (5)
Total
Revenue from
operations
42,158
22,504
17,991
20,035
22,298
12,411
11,515
4,758
153,670
43,763
21,204
18,086
18,539
19,035
11,867
10,085
4,188
146,767
Identifiable
operating
expenses
24,782
11,704
11,071
10,838
14,596
7,232
6,716
2,938
89,877
24,990
10,892
11,101
9,923
12,493
6,959
5,834
2,801
84,993
Allocated
expenses
8,052
3,918
3,232
3,674
3,505
2,026
1,901
1,060
27,368
7,930
3,916
3,226
3,461
3,429
1,949
1,685
1,048
26,644
Segment
operating
income
9,324
6,882
3,688
5,523
4,197
3,153
2,898
760
36,425
10,843
6,396
3,759
5,155
3,113
2,959
2,566
339
35,130
Infosys Integrated Annual Report 2023-24
364
Particulars
Financial
Services (1)*
Retail (2)
Communication(3)
Energy,
Utilities,
Resources
and
Services
Manufacturing
Hi-Tech
Life
Sciences (4)
All other
segments (5)
Total
Unallocable
expenses
4,678
4,225
Other income, net (Refer to Note 2.19)
4,711
2,701
Finance cost
470
284
Profit before tax
35,988
33,322
Income tax expense
9,740
9,214
Net Profit
26,248
24,108
Depreciation and amortization expense
4,678
4,225
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
(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in Public Services
*
Includes impact on account of McCamish cybersecurity incident. Refer note 2.24.2.
Significant clients
No client individually accounted for more than 10% of the revenues for the years ended March 31, 2024 and March 31, 2023, respectively.
Consolidated Financial Statements
Infosys Integrated Annual Report 2023-24
365
2.27 Function-wise classification of Consolidated Statement of Profit and Loss
(In ₹ crore)
Particulars
Note
Year ended March 31,
2024
2023
Revenue from operations
2.18
153,670
146,767
Cost of sales
107,413
102,353
Gross profit
46,257
44,414
Operating expenses
Selling and marketing expenses
6,973
6,249
General and administration expenses
7,537
7,260
Total operating expenses
14,510
13,509
Operating profit
31,747
30,905
Other income, net
2.19
4,711
2,701
Finance cost
470
284
Profit before tax
35,988
33,322
Tax expense:
Current tax
2.17
8,390
9,287
Deferred tax
2.17
1,350
(73)
Profit for the year
26,248
24,108
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net
2.22
120
8
Equity instruments through other comprehensive income, net
2.5
19
(7)
139
1
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
2.11
11
(7)
Exchange differences on translation of foreign operations, net
226
776
Fair value changes on investments, net
2.5
144
(256)
381
513
Total other comprehensive income / (loss), net of tax
520
514
Total comprehensive income for the year
26,768
24,622
Profit attributable to:
Owners of the Company
26,233
24,095
Non-controlling interests
15
13
26,248
24,108
Total comprehensive income attributable to:
Owners of the Company
26,754
24,598
Non-controlling interests
14
24
26,768
24,622
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
DIN: 00016304
DIN: 00019437
DIN: 01876159
Bengaluru
April 18, 2024
Jayesh Sanghrajka
Chief Financial Officer
A.G.S. Manikantha
Company Secretary
Membership No. A21918
This page is intentionally left blank
May 31, 2024
Dear Member,
You are cordially invited to attend the 43rd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) to be held
on Wednesday, June 26, 2024 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.
Very truly yours,
Sd/-
Nandan M. Nilekani
Chairman
Enclosures:
1. Notice of the 43rd 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
Infosys Limited
2 | Notice of the 43rd Annual General Meeting
Notice of the 43rd Annual General Meeting
Notice is hereby given that the 43rd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) will be held on
Wednesday, June 26, 2024, 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, 2024 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 ₹20/- per equity share for the financial year ended March 31, 2024 and additionally a special dividend of
₹8/- per equity share.
Item no. 3 – Appointment of Nandan M. Nilekani as a director, liable to retire by rotation
To appoint a director in place of Nandan M. Nilekani (DIN: 00041245), who retires by rotation and being eligible, seeks reappointment.
Explanation: Based on the terms of appointment, executive directors , non-executive and non-independent chairman are subject to
retirement by rotation. Nandan M. Nilekani, who was initially appointed on August 24, 2017 and last appointed on June 25, 2022, and
whose office is liable to retire at the ensuing AGM, being eligible, seeks reappointment. Based on performance evaluation and the
recommendation of the Nomination and Remuneration Committee, the Board recommends his reappointment.
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT pursuant to the provisions of Section 152 and other applicable provisions of the Companies Act, 2013, the approval
of members of the Company, be and is hereby accorded to reappoint Nandan M. Nilekani (DIN: 00041245) as a director, who is liable
to retire by rotation.
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
April 18, 2024
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
Membership No. ACS 21918
Notes
1. Pursuant to the General Circular No. 09/2023 dated September 25, 2023, issued by the Ministry of Corporate Affairs (MCA) and
Circular SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/167 dated October 7, 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. 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.com.
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 26, 2024. Members
seeking to inspect such documents can send an email to investors@infosys.com.
Infosys Limited
Notice of the 43rd Annual General Meeting | 3
6. Members whose shareholding is in demat 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 18, 2024, has recommended a final dividend of ₹20/- per equity
share for the financial year ended March 31, 2024 and additionally a special dividend of ₹8/- per equity share. The record date for
the purpose of final dividend and special dividend is May 31, 2024. The final dividend and special dividend, once approved by the
members in the ensuing AGM, will be paid on July 1, 2024, through various modes. 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 and special dividend. To enable us to determine the
appropriate TDS rate as applicable, members are requested to submit relevant documents, as specified in the below paragraphs, in
accordance with the provisions of the IT Act.
For resident shareholders, taxes shall be deducted at source under Section 194 of the IT Act as follows:
Members having valid Permanent Account Number (PAN)
10%* or as notified by the Government of India (GOI)
Members not having PAN / valid PAN
20% or as notified by the GOI
*i) As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein higher rate of tax (twice the specified rate) would be
applicable on payment made to a shareholder who is classified as ‘Specified Person’ as defined under Section 206AB of the Finance Act, 2021.
ii) 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 2024-25 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 07, 2024. 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
Infosys Limited
4 | Notice of the 43rd Annual General Meeting
accepted from members after June 07, 2024, 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
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 mode, as on cut-off date, i.e. June 19, 2024, may cast their votes
electronically. The e-voting period commences on Friday, June 21, 2024 (9:00 a.m. IST) and ends on Tuesday, June 25, 2024 (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 19, 2024. 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 mode or a person, who acquires shares and becomes a member of the Company after the
Notice is sent and holding shares as on the cut-off date, i.e. June 19, 2024, may obtain the login ID and password by sending a request
to evoting@nsdl.com. 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.
15. In compliance with the Circulars, the Integrated Annual Report for 2023-24, the Notice of the 43rd 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 2023-24 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.
Infosys Limited
Notice of the 43rd Annual General Meeting | 5
Type of holder
Process to be followed
Physical
For availing the following investor services, send a written request in the prescribed forms to the RTA of the Company,
KFin Technologies Limited either by email to einward.ris@kfintech.com or by post to
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
Form ISR-1
Update of signature of securities holder
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
Form ISR-3
Cancellation of nomination by the holder(s) (along with ISR-3) / Change of nominee
Form SH-14
Form for requesting issue of duplicate certificate and other service requests for shares / debentures /
bonds, etc., held in physical mode
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 43rd AGM and the Integrated Annual Report 2023-24 will also be available on the
Company’s website at, 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.
19. Effective April 1, 2024, SEBI has mandated that the shareholders, who hold shares in physical mode and whose folios are not updated
with any of the KYC details [viz., (i) PAN (ii) Choice of Nomination (iii) Contact Details (iv) Mobile Number (v) Bank Account Details and
(vi) Signature], shall be eligible to get dividend only in electronic mode. Accordingly, payment of final and special dividend, subject
to approval at the AGM, shall be paid to physical holders only after the above details are updated in their folios. Shareholders are
requested to complete their KYC by writing 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
20. As per Section 72 of the Act, members holding shares in physical mode may submit their nomination by submitting SH-13 which
can be downloaded from the Company’s website at https://www.infosys.com/investors/shareholder-services/documents/investors-
service/form-sh13.pdf members holding shares in demat mode may contact their respective DPs to update the nomination.
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
April 18, 2024
by order of the Board of Directors
for Infosys Limited
Sd/-
A.G.S. Manikantha
Company Secretary
Membership No. ACS 21918
Infosys Limited
6 | Notice of the 43rd Annual General Meeting
Nandan M. Nilekani
Chairman
Nandan M. Nilekani (Nandan) is the Chairman of Infosys Limited,
which he co-founded in 1981, and EkStep, a not-for-profit
effort to create a learner-centric, technology-based platform
to improve basic literacy and numeracy for millions of children.
He was previously the Chairman of the Unique Identification
Authority of India (UIDAI) in the rank of a Cabinet Minister.
In January 2023, he was appointed as the co- chair of the
“G20 Task Force on Digital Public Infrastructure for Economic
Transformation, Financial Inclusion and Development”. Nandan
received his bachelor’s degree from IIT, Bombay. Fortune
Magazine conferred on him the title of “Asia’s Businessman of
the Year – 2003”. In 2005, he received the prestigious Joseph
Schumpeter Prize for innovative services in economy, economic
sciences and politics. In 2006, he was awarded the Padma
Bhushan. The same year, he was named Businessman of the
Year by Forbes Asia. Time magazine listed him as one of the 100
most influential people in the world in 2006 and 2009. Foreign
Policy magazine listed him as one of the Top 100 Global Thinkers
in 2010. He won The Economist Social & Economic Innovation
Award for his leadership of India’s unique identification initiative
(Aadhaar). In 2017, he received the Lifetime Achievement Award
from E&Y. CNBC-TV18 conferred the India Business Leader award
for outstanding contribution to the Indian economy in 2017
and he also received the 22nd Nikkei Asia Prize for Economic &
Business Innovation 2017. He is the author of Imagining India
and co-authored with Viral Shah his second book, Rebooting
India: Realizing a Billion Aspirations and his third book with Tanuj
Bhojwani, The Art of Bitfulness: Keeping Calm in the Digital World
released in January 2022.
Age: 68 years
Nature of expertise in specific functional areas: Financial,
Diversity, Global Business, Cybersecurity, Strategy, Leadership,
Information Technology, Board Service and Governance, Sales
and Marketing, Mergers & Acquisitions, Risk Management, and
Sustainability and ESG
Disclosure of inter-se relationships between
directors and KMP: None
Listed entities (other than the Infosys Group) in which Nandan
holds directorship and committee membership: Nil
Listed entities from which Nandan has resigned in the
past three years: Nil
Shareholding in the Company as on April 18, 2024:
Name
Category
No. of equity shares
held
Nandan M. Nilekani
Director
4,07,83,162
Rohini Nilekani
Relative (Spouse)
3,43,35,092
Nihar Nilekani
Relative (Son)
1,26,77,752
Janhavi Nilekani
Relative (Daughter)
85,89,721
Remuneration proposed to be paid: Nandan M. Nilekani
voluntarily chose not to receive any remuneration for his services
rendered to the Company .
Key terms and conditions of appointment: As per the resolution
at Item no. 3 of this Notice. Nandan M. Nilekani’s office as director
shall be subject to retirement by rotation .
Date of first appointment to the Board, last drawn remuneration
and number of Board meetings attended: Nandan M. Nilekani
was first appointed to the Board in 1981. He ceased to be a
member of the Board on July 9, 2009. He was unanimously
appointed as a member and Chairman of the Board effective
August 24, 2017. He voluntarily chose not to receive any
remuneration for his services rendered to the Company. Details
pertaining to his appointment, remuneration, and number of
meetings attended are provided in the Corporate governance
report of this Integrated Report 2023-24 .
Additional information on directors recommended for appointment / reappointment as required under
Regulation 36 of the LODR Regulations and applicable secretarial standards
Infosys Limited
Notice of the 43rd Annual General Meeting | 7
Instructions for participation through VC
Please follow the below steps for registration and participation
Step 1:
Access the VC portal by clicking this link: https://agm.
onwingspan.com/InfosysAGM or you could also join the AGM
by visiting the investor page on our Company’s website,
www.infosys.com
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
Step 2:
Log in to join the VC session by using your DP ID and Client ID /
Folio Number together with your PAN
a) Members with NSDL account: 8-character DP ID followed by
8-digit Client ID
(For example, if your DP ID is IN300*** and Client ID is 12******,
then your user ID is IN300***12******).
b) Members with CDSL account: 16-digit Beneficiary ID (For
example, if your Beneficiary ID is 12**************, then your
user ID is 12**************).
c) Members with physical folio: ITL + Folio Number registered
with the Company
(For example, if your Folio Number is 0*****, then your user ID
is ITL0*****)
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 43rd 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.
Infosys Limited
8 | Notice of the 43rd Annual General Meeting
Instructions for e-voting
The process to vote electronically on NSDL e-voting system consists of two steps:
Step 1: Access to the NSDL e-voting system
(A) Login method for e-voting for individual shareholders holding securities in demat mode
In terms of SEBI circular SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on e-voting facility provided by listed
companies, individual shareholders holding securities in demat mode are allowed 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 in order to access e-voting facility.
Login method for individual shareholders holding securities in demat mode is given below:
Type of shareholders
Login method
Individual shareholders holding securities in
demat mode with NSDL
Existing IDeAS user can visit the e-Services website of NSDL, Viz. https://eservices.nsdl.
com either on a personal computer or on a mobile. On the e-Services home page click
on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section,
this will prompt you to enter your existing User ID and Password. After successful
authentication, you will be able to see e-voting services under Value added services.
Click on “Access to e-voting” under e-voting services and you will be able to see e-voting
page. Click on company name or e-voting service provider i.e. NSDL and you will be re-
directed to e-voting website of NSDL for casting your vote during the remote e-voting
period.
If you are not registered for IDeAS e-Services, option to register is available at https://
eservices.nsdl.com. Select “Register Online for IDeAS Portal” or click at https://eservices.
nsdl.com/SecureWeb/IdeasDirectReg.jsp
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 on a mobile. Once the
home page of e-voting system is launched, click on the icon “Login” which is available
under ‘Shareholder/Member’ section. 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. After successful authentication, you
will be redirected to NSDL Depository site wherein you can see e-voting page. Click
on company name or e-voting service provider i.e. NSDL and you will be redirected to
e-voting website of NSDL for casting your vote during the remote e-voting period.
Shareholders / Members can also download NSDL Mobile App “NSDL Speede” facility by
scanning the QR code mentioned below for seamless voting experience.
Individual shareholders holding securities in
demat mode with CDSL
Users who have opted for CDSL Easi / Easiest facility, can login through their existing
user id and password. Option will be made available to reach e-voting page without
any further authentication. The users to login Easi / Easiest are requested to visit CDSL
website www.cdslindia.com and click on login icon and New System Myeasi Tab and
then use your existing my easi username and password.
After successful login the Easi / Easiest user will be able to see the e-voting option for
eligible companies where the evoting is in progress as per the information provided by
company. On clicking the evoting 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.
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, option to register is available at CDSL website
www.cdslindia.com and click on login & New System Myeasi Tab and then click on
registration option.
Infosys Limited
Notice of the 43rd Annual General Meeting | 9
Alternatively, the user can directly access e-voting page by providing Demat Account
Number and PAN from a e-voting link available on www.cdslindia.com home page.
The system will authenticate the user by sending OTP on registered Mobile & Email as
recorded in the Demat Account. After successful authentication, user will be able to see
the e-voting option where the evoting is in progress and also able to directly access the
system of all e-voting Service Providers.
Type of shareholders
Login Method
Individual shareholders (holding securities in
demat mode) logging in through their depository
participants
You can also login using the login credentials of your demat account through your
Depository Participant registered with NSDL/CDSL for e-voting facility. Upon logging in,
you will be able to see e-voting option. Click on e-voting option, you will be redirected to
NSDL/CDSL Depository site after successful authentication, wherein you can see e-voting
feature. Click on company name or e-voting service provider i.e. NSDL and you will be
redirected to e-voting website of NSDL for casting your vote during the remote e-voting
period.
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.com or call 022-48867000
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
How to Log-in to NSDL e-voting website?
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 on a mobile.
2. Once the home page of e-voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section.
3. A new screen will open. Enter your User ID, Password / OTP and a verification code as shown on the screen.
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.
4. Your User ID details are given below:
Manner of holding shares i.e. Demat (NSDL
or CDSL) or Physical
Your User ID is:
a) For members who hold shares in demat
account with NSDL
8-character DP ID followed by 8-digit Client ID
For example, if your DP ID is IN300*** and Client ID is 12****** then your User ID is
IN300***12******.
b) For members who hold shares in demat
account with CDSL
16-digit Beneficiary ID For example, if your Beneficiary ID is 12************** then your User ID
is 12**************
c) For members holding shares in physical
mode
EVEN Number followed by Folio Number registered with the Company For example, if your
Folio Number is 001*** and EVEN is 128691 then your User ID is 128691001***
5. 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.
Infosys Limited
10 | Notice of the 43rd Annual General Meeting
c. How to retrieve your ‘initial password’?
(i) 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 mode. The .pdf file contains your ‘User ID’ and
your ‘initial password’.
(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose email
ids are not registered
6. 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.com 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.
7. After entering your password, tick on “Agree with Terms and Conditions” by selecting on the check box.
8. Now, you will have to click on the ‘Login’ button.
9. 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
How to cast your vote electronically on NSDL e-voting system?
1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting
cycle.
2. Select “EVEN” of company for which you wish to cast your vote during the remote e-voting period.
3. Now you are ready for e-voting as the Voting page opens.
4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast
your vote and click on “Submit” and also “Confirm” when prompted.
5. Upon confirmation, the message “Vote cast successfully” will be displayed.
6. You can also take the 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
General guidelines for shareholders
1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the
relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are
authorized to vote, to the Scrutinizer by e-mail to evoting@infosys.com with a copy marked to evoting@nsdl.com. 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.
2. It is strongly recommended not to 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.
3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for
Shareholders available at the download section of www.evoting.nsdl.com or call on : 022 - 4886 7000 or send a request to evoting@
nsdl.com, or contact Amit Vishal, Deputy Vice President, or Pallavi Mhatre, Senior Manager, National Securities Depository Ltd., at the
designated email ID: evoting@nsdl.com to get your grievances on e-voting addressed.
Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and
registration of e mail ids for e-voting for the resolutions set out in this notice:
1. In case shares are held in physical mode please provide Folio No., Name of shareholder, 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) by email to
investors@infosys.com & evoting@infosys.com.
2. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client
master or copy of Consolidated Account Statement, PAN (self attested scanned copy of PAN card), AADHAAR (self attested scanned
copy of Aadhaar Card) to investors@infosys.com & evoting@infosys.com. 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 for Individual
shareholders holding securities in demat mode.
Infosys Limited
Notice of the 43rd Annual General Meeting | 11
3. Alternatively, shareholders/members may send a request to evoting@nsdl.com for procuring user id and password for e-voting by
providing above mentioned documents.
4. In terms of SEBI circular dated December 9, 2020, on e-voting facility provided by Listed Companies, Individual shareholders
holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository
Participants. Shareholders are required to update their mobile number and email ID correctly in their demat account in order to
access e-voting facility
Information at a glance
Particulars
Details
Time and date of AGM
4:00 p.m. IST, Wednesday, June 26, 2024
Mode
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
https://www.infosys.com/Investors/
Record date for the purpose of dividend
Friday, May 31, 2024
Dividend payment date
Monday, July 1, 2024
Information of tax on dividend
https://www.infosys.com/investors/shareholder-services/dividend-tax.html
Cut-off date for e-voting
Wednesday, June 19, 2024
E-voting start time and date
9:00 a.m. IST, Friday, June 21, 2024
E-voting end time and date
5:00 p.m. IST, Tuesday, June 25, 2024
E-voting website of NSDL
https://www.evoting.nsdl.com/
Name, address and contact details of e-voting service
provider
Contact name:
Amit Vishal
Deputy 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’s:
amitv@nsdl.com
pallavid@nsdl.com
evoting@nsdl.com
Contact number: 022 - 4886 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’s:
shobha.anand@kfintech.com;
einward.ris@kfintech.com;
Contact number: 1800-309-4001
Infosys Integrated Annual Report 2023-24
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. 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. These statements are subject to substantial 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, risks and uncertainties relating to the execution of our business strategy,
increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees,
our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technological disruption
and innovations such as Generative AI, complex and evolving regulatory landscape, including immigration regulation changes, ESG
vision, our Capital Allocation Policy and expectations concerning our market position, future operations, margins, profitability, liquidity,
capital resources and corporate actions including acquisitions, the findings of the review of the extent and nature of data subject to
unauthorized access and exfiltration in relation to the McCamish cybersecurity incident and reaction to such findings, the timing of the
notification process, and the amount of any additional costs, including indemnities or damages / claims, resulting directly or indirectly
from the incident. These and additional factors are discussed in the “Outlook, risks and concerns” and risk management report sections
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.
Designed by Communication Design Group, Infosys Limited.
© 2024 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.
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