EX-19.1 3 f76856ex19-1.txt EXHIBIT 19.1 INFOSYS TECHNOLOGIES LIMITED Report for the second quarter ended September 30, 2001 [INFOSYS(R) LOGO] At a glance - Indian GAAP
Rs. in crores, except per share data Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- For the period Total revenue 650.13 446.10 1,262.65 801.63 1,900.57 Export revenue 638.27 441.26 1,234.57 792.32 1,874.03 Operating profit (PBIDT) 258.92 176.42 499.43 314.06 764.84 Profit after tax (PAT) from ordinary activities 201.56 154.01 391.59 275.32 623.32 PBIDT as a percentage of total revenue 39.83% 39.55% 39.55% 39.18% 40.24% PAT from ordinary activities as a percentage of total revenue 31.00% 34.52% 31.01% 34.34% 32.80% Earnings per share from ordinary activities* (par value of Rs. 5 each, fully paid) Basic 30.47 23.28 59.19 41.62 94.23 Diluted 30.39 22.99 59.05 41.13 93.93 Dividend per share NA NA 7.50 2.50 10.00 Dividend amount** NA NA 49.62 16.54 66.16 Capital investment 129.77 114.01 231.51 199.85 463.35 At the end of the period Total Assets 1,742.49 1,094.04 1,389.64 Fixed assets - net 713.66 365.19 557.66 Cash and cash equivalents 714.84 535.90 577.74 Working capital 965.74 683.12 797.86 Total debt -- -- -- Net worth 1,742.49 1,094.04 1,389.64 Equity 33.08 33.08 33.08 Market capitalization 15,878.57 48,695.68 26,926.35
Note: Market capitalization is calculated by considering the price at the National Stock Exchange on the shares outstanding at the period / year end. * EPS figures have been calculated for the period and have not been annualized. ** Excluding dividend tax. [TOTAL REVENUE BAR GRAPH]
Total Revenue (in Rs. Crores) Year ended March 31, 2001 1,900.57 Quarter ended September 30, 2000 446.10 Quarter ended September 30, 2001 650.13
[EXPORT BAR GRAPH]
Export (in Rs. Crores) Year ended March 31, 2001 1,874.03 Quarter ended September 30, 2000 441.26 Quarter ended September 30, 2001 638.27
[NET PROFIT FROM ORDINARY ACTIVITIES BAR GRAPH]
Net Profit from Ordinary Activities (in Rs. Crores) Year ended March 31, 2001 623.32 Quarter ended September 30, 2000 154.01 Quarter ended September 30, 2001 201.56
2 Letter to the shareholders Dear shareholders, We are delighted to report on yet another comfortable quarter. Under Indian GAAP, revenues grew by 46% over Q2 FY2001 while net profits from ordinary activities witnessed an increase of 31%. In fact, we earned a record post-tax profit of Rs. 201.56 crore, the highest in any quarter. Net employee addition for the quarter stood at 607. The number of lateral entrants was 92. We declared an interim dividend of Rs. 7.50 per share (150% on an equity share of par value of Rs. 5 each) as compared to Rs. 2.50 (50% on an equity share of par value of Rs. 5 each) for the corresponding period in the previous year. The market continues to be challenging and pricing pressures continue to exist. At this point in time, we reiterate our forecast of 30% annual revenue growth for the year ending March 31, 2002. Consequently, we anticipate total income for the quarter ending December 31, 2001 to be in the range of Rs. 640 crore to Rs. 656 crore. There may be a business impact due to the extraordinary situation arising out of the escalating tensions in Afghanistan. In such an event, we will, as always, proactively inform our investors and other stakeholders. For the first two quarters of fiscal 2002, Infosys met its growth estimates. We have strong systems and processes that enable us to have better predictability in our business. Infosys continues to have strong relationships with Global 2000 companies. Our large customer base helps maintain revenue productivity within an acceptable band. We added 28 new clients this quarter. Significant wins included UFJ Holdings Inc., a holding company for The Sanwa Bank, The Tokai Bank, and The Toyo Trust and Banking Company; Bank Muscat, one of the largest banks in Oman; DGZ DekaBank, the largest investment bank in Germany; ING Group, a Global 1000 financial institution active in the fields of banking, insurance and asset management; Royal Bank of Canada Financial Group, the largest and oldest financial institution in Canada; Lear Corporation and Visteon, two of the largest automotive suppliers in the world; Pier 1 Imports, one of the leading retailer of gifts and home furnishings located in the US; and Dentsu MarchFirst, the IT subsidiary of Dentsu Inc., a leading advertising company in Japan. Infosys also won its first consulting engagement in the government sector with an assignment for the UK Government's National Health Service, the world's largest Health Maintenance Organization. We extend our heartfelt sympathies to the people affected by the recent events in the US. Within hours after the incident, Infosys had setup a 24-hour help desk for its affected employees and their relatives. We also provided office space at our development centers in the US to our affected clients. Further, Infosys has contributed towards the relief efforts in the US. As in the past, Infoscions continue to work hard. On your behalf, we thank our fellow Infoscions for contributing to yet another successful quarter through their unstinting commitment and dedication. /s/ Nandan M. Nilekani /s/ N. R. Narayana Murthy Nandan M. Nilekani N. R. Narayana Murthy Bangalore Managing Director, President and Chairman and October 10, 2001 Chief Operating Officer Chief Executive Officer
3 Auditors' report to the members of Infosys Technologies Limited We have audited the attached Balance Sheet of Infosys Technologies Limited (the Company) as at September 30, 2001 and the Profit and Loss Accounts of the Company for the quarter and half-year ended on that date, annexed thereto, and report that: 1 As required by the Manufacturing and Other Companies (Auditor's Report) Order, 1988, issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2 Further to our comments in the Annexure referred to in paragraph 1 above: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; (b) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of these books; (c) the Balance Sheet and Profit and Loss Accounts dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance Sheet and Profit and Loss Accounts dealt with by this report are prepared in compliance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956, to the extent applicable; (e) in our opinion, and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at September 30, 2001; and (ii) in the case of the Profit and Loss Accounts, of the profit for the quarter and half-year ended on that date. for Bharat S Raut & Co. Chartered Accountants S. Balasubrahmanyam Partner Bangalore October 10, 2001 4 BALANCE SHEET AS AT
in Rs. September 30, 2001 September 30, 2000 March 31, 2001 ------------------ ------------------ -------------- SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share capital 33,08,05,085 33,07,58,335 33,07,92,085 Reserves and surplus 1709,40,91,349 1060,95,95,077 1356,55,99,903 -------------- -------------- -------------- 1742,48,96,434 1094,03,53,412 1389,63,91,988 ============== ============== ============== APPLICATION OF FUNDS FIXED ASSETS Original cost 788,09,31,352 435,74,18,072 631,14,44,025 Less: Depreciation 310,63,23,862 175,13,71,312 244,13,15,982 -------------- -------------- -------------- Net book value 477,46,07,490 260,60,46,760 387,01,28,043 Add: Capital work-in-progress 236,20,20,439 104,58,25,080 170,65,04,250 -------------- -------------- -------------- 713,66,27,929 365,18,71,840 557,66,32,293 INVESTMENTS 44,44,22,821 45,73,06,737 34,11,54,821 DEFERRED TAX ASSETS 18,64,00,000 -- -- CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors 343,59,65,205 243,05,68,746 302,37,02,417 Cash and bank balances 427,68,50,720 424,28,92,315 385,06,10,285 Loans and advances 623,26,38,007 288,54,93,594 430,27,93,623 -------------- -------------- -------------- 1394,54,53,932 955,89,54,655 1117,71,06,325 Less: Current liabilities 179,75,16,918 150,82,14,077 134,91,81,176 Provisions 249,04,91,330 121,95,65,743 184,93,20,275 -------------- -------------- -------------- NET CURRENT ASSETS 965,74,45,684 683,11,74,835 797,86,04,874 -------------- -------------- -------------- 1742,48,96,434 1094,03,53,412 1389,63,91,988 ============== ============== ==============
SIGNIFICANT EXTRACTS FROM THE ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1 The schedules referred to above and the notes thereon form an integral part of the Balance Sheet This is the Balance Sheet referred to in our report of even date for Bharat S Raut & Co. Chartered Accountants S. Balasubrahmanyam N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Jitendra Vir Singh Omkar Goswami Partner Chairman Managing Director, Director Director Director and Chief President Executive Officer and Chief Operating Officer Larry Pressler Rama Bijapurkar S. Gopalakrishnan K. Dinesh S. D. Shibulal Director Director Deputy Managing Director Director Director T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Balakrishnan Bangalore Director and Director Director Company Secretary and October 10, 2001 Chief Financial Vice President - Finance Officer
5 PROFIT AND LOSS ACCOUNT FOR THE
in Rs. Quarter ended Half - year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- INCOME Software development services and products Overseas 638,27,29,997 441,25,85,913 1234,57,51,485 792,31,64,336 1874,02,66,421 Domestic 11,85,97,038 4,83,71,864 28,07,62,899 9,30,93,590 26,53,92,386 -------------- -------------- --------------- -------------- --------------- 650,13,27,035 446,09,57,777 1262,65,14,384 801,62,57,926 1900,56,58,807 SOFTWARE DEVELOPMENT EXPENSES 306,95,18,213 204,57,40,979 592,51,32,335 375,42,12,108 870,83,23,900 -------------- -------------- --------------- -------------- --------------- GROSS PROFIT 343,18,08,822 241,52,16,798 670,13,82,049 426,20,45,818 1029,73,34,907 SELLING AND MARKETING EXPENSES 33,45,88,426 22,54,30,744 61,10,91,966 40,54,06,512 92,06,78,511 GENERAL AND ADMINISTRATION EXPENSES 50,80,53,479 42,55,83,545 109,59,88,820 71,60,53,863 172,82,35,210 -------------- -------------- --------------- -------------- --------------- 84,26,41,905 65,10,14,289 170,70,80,786 112,14,60,375 264,89,13,721 OPERATING PROFIT (PBIDT) 258,91,66,917 176,42,02,509 499,43,01,263 314,05,85,443 764,84,21,186 Interest -- -- -- -- -- Depreciation 39,01,37,925 24,23,67,547 74,49,41,417 41,97,39,264 112,89,45,152 OPERATING PROFIT AFTER DEPRECIATION AND INTEREST 219,90,28,992 152,18,34,962 424,93,59,846 272,08,46,179 651,94,76,034 Other income 14,65,84,009 19,57,87,617 28,15,23,614 34,68,95,149 59,37,14,915 Provision for investment -- -- -- -- 15,28,98,608 -------------- -------------- --------------- -------------- --------------- PROFIT BEFORE TAX AND EXTRAORDINARY ITEM 234,56,13,001 171,76,22,579 453,08,83,460 306,77,41,328 696,02,92,341 Provision for taxation 33,00,00,000 17,75,00,000 61,50,00,000 31,46,00,000 72,71,00,000 -------------- -------------- --------------- -------------- --------------- PROFIT AFTER TAX BEFORE EXTRAORDINARY ITEM 201,56,13,001 154,01,22,579 391,58,83,460 275,31,41,328 623,31,92,341 Extraordinary item Transfer of intellectual property rights (net of tax) -- -- -- 5,49,44,000 5,49,44,000 -------------- -------------- --------------- -------------- --------------- NET PROFIT AFTER TAX AND EXTRAORDINARY ITEM 201,56,13,001 154,01,22,579 391,58,83,460 280,80,85,328 628,81,36,341 -------------- -------------- --------------- -------------- --------------- AMOUNT AVAILABLE FOR APPROPRIATION 201,56,13,001 154,01,22,579 391,58,83,460 280,80,85,328 628,81,36,341 -------------- -------------- --------------- -------------- --------------- DIVIDEND Interim 49,62,05,378 16,53,78,418 49,62,05,378 16,53,78,418 16,53,78,418 Final -- -- -- -- 49,61,85,878 Dividend Tax 5,06,12,949 3,63,83,252 5,06,12,949 3,63,83,252 8,69,94,211 Amount transferred - general reserve -- -- -- -- 553,95,77,834 Balance in Profit and Loss Account 146,87,94,674 133,83,60,909 336,90,65,133 260,63,23,658 -- -------------- -------------- --------------- -------------- --------------- 201,56,13,001 154,01,22,579 391,58,83,460 280,80,85,328 628,81,36,341 ============= ============= ============= ============= ============= EARNINGS PER SHARE (equity shares, par value Rs. 5 each) Basic 30.47 23.28 59.19 42.45 95.06 Diluted 30.39 22.99 59.05 41.95 94.76 Number of shares used in computing earnings per share Basic 6,61,60,717 6,61,51,036 6,61,59,892 6,61,51,205 6,61,52,131 Diluted 6,63,34,606 6,69,83,260 6,63,12,732 6,69,40,134 6,63,58,311 ============= ============= ============= ============= =============
SIGNIFICANT EXTRACTS FROM THE ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1 The schedules referred to above and the notes form an integral part of the Profit and Loss Account This is the Profit and Loss Account referred to in our report of even date For Bharat S Raut & Co. Chartered Accountants S. Balasubrahmanyam N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Jitendra Vir Singh Omkar Goswami Partner Chairman Managing Director, Director Director Director and Chief President Executive Officer and Chief Operating Officer Larry Pressler Rama Bijapurkar S. Gopalakrishnan K. Dinesh S. D. Shibulal Director Director Deputy Managing Director Director Director T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Balakrishnan Bangalore Director and Director Director Company Secretary and October 10, 2001 Chief Financial Vice President - Finance Officer
6 Profit and loss account for the
in Rs. ------------------------------------------------------------------------------------------------------------------------------ Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- SOFTWARE DEVELOPMENT EXPENSES Salaries and bonus including overseas staff expenses 242,53,70,713 140,48,25,325 466,98,37,046 257,14,62,932 605,50,65,446 Staff welfare 1,58,93,115 1,67,63,276 3,44,73,648 2,95,47,891 7,62,88,618 Contribution to provident and other 6,32,38,606 6,76,75,023 12,48,67,596 15,52,87,982 30,99,68,667 funds Foreign travel expenses 29,26,61,979 32,72,21,919 56,46,71,143 60,31,11,806 133,66,21,566 Consumables 68,34,378 1,04,12,879 1,07,50,113 1,95,07,075 5,86,87,245 Cost of software packages for own use 9,09,74,250 12,25,43,284 17,06,08,409 19,79,49,590 31,83,50,293 banking product 2,03,97,419 49,60,448 6,04,55,447 1,33,11,277 5,70,13,753 Provision for post-sales client support 95,36,022 82,28,718 1,05,08,862 80,48,558 1,83,20,669 Computer maintenance 1,72,23,262 1,21,28,033 2,90,30,538 2,69,37,433 7,13,47,686 Communication expenses 10,51,43,428 5,24,17,653 20,73,11,599 9,91,91,881 31,47,34,348 Consultancy charges 2,22,45,041 1,85,64,421 4,26,17,934 2,98,55,683 9,19,25,609 ------------- ------------- ------------- ------------- ------------- 306,95,18,213 204,57,40,979 592,51,32,335 375,42,12,108 870,83,23,900 ============= ============= ============= ============= ============= SELLING AND MARKETING EXPENSES Salaries and bonus including overseas staff expenses 14,68,66,401 10,37,54,181 30,51,23,822 20,97,63,939 44,24,50,822 Staff welfare 5,20,327 5,43,101 16,83,812 28,63,974 83,17,692 Contribution to provident and other 5,56,102 5,44,097 7,14,482 12,96,084 23,63,480 funds Foreign travel expenses 3,94,40,416 1,96,85,346 7,48,92,867 4,29,74,449 10,71,57,557 Consumables 1,02,957 -- 1,02,957 -- -- Cost of software packages for own use 4,11,878 35,236 7,52,402 35,236 2,31,458 Computer maintenance -- 1,73,855 11,907 1,73,855 5,94,392 Communication expenses 8,56,706 59,998 8,95,699 2,91,507 5,21,638 Traveling and conveyance 1,46,82,603 44,60,923 2,37,29,479 93,13,670 2,34,94,934 Rent 1,56,17,287 65,32,968 2,62,53,937 1,09,64,206 2,46,88,860 Telephone charges 78,98,953 46,32,762 1,52,02,537 82,23,013 2,34,14,698 Professional charges 1,45,17,412 57,99,596 2,11,05,998 1,18,48,647 4,78,37,412 Printing and stationery 37,21,649 17,48,879 74,15,023 17,48,879 95,70,534 Advertisements 2,81,125 43,33,991 3,28,504 43,80,600 72,82,105 Brand building 5,80,29,091 3,92,19,123 7,66,50,375 5,01,77,269 10,52,01,392 Office maintenance 5,52,653 17,76,829 12,85,585 41,16,145 77,28,128 Repairs to plant and machinery 9,129 -- 1,09,365 17,41,984 17,41,984 Power and fuel 1,91,805 1,66,770 3,51,265 3,91,296 7,53,535 Insurance charges -- 43,41,321 -- 68,73,171 2,33,32,600 Rates and taxes 53,506 26,64,615 23,25,419 50,30,516 84,89,250 Bank charges and commission 88,477 47,743 1,52,328 82,947 5,15,576 Commission charges 1,49,06,774 67,61,132 2,00,83,642 90,25,721 1,79,03,784 Marketing expenses 1,11,35,672 1,75,28,494 2,64,89,952 2,28,51,535 4,26,87,545 Sales promotion expenses 10,30,384 4,24,831 21,65,010 6,11,902 70,16,656 Other miscellaneous expenses 31,17,119 1,94,953 32,65,599 6,25,967 73,82,479 ------------- ------------- ------------- ------------- ------------- 33,45,88,426 22,54,30,744 61,10,91,966 40,54,06,512 92,06,78,511 ============= ============= ============= ============= =============
7 Profit and loss account for the
in Rs. ------------------------------------------------------------------------------------------------------------------------------------ Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- GENERAL AND ADMINISTRATION EXPENSES Salaries and bonus including overseas staff expenses 11,91,68,693 7,56,98,768 22,80,81,640 11,89,54,511 26,11,29,018 Contribution to provident and other funds 82,52,142 61,60,454 1,66,91,774 1,27,67,529 2,22,44,161 Foreign travel expenses 1,01,87,036 1,20,99,135 2,50,85,464 1,50,67,224 2,84,32,532 Traveling and conveyance 4,13,30,515 4,53,26,342 7,44,67,740 6,77,25,794 16,05,69,888 Rent 3,95,85,660 3,03,09,841 9,40,68,901 5,85,72,831 14,47,93,848 Telephone charges 3,25,02,025 3,13,25,967 6,76,40,755 5,68,66,750 11,68,45,665 Professional charges 3,29,37,234 3,28,43,083 6,47,97,990 5,23,59,103 15,61,83,973 Printing and stationery 64,71,558 93,08,517 3,42,08,860 3,43,75,418 5,29,83,672 Advertisements 80,79,923 1,32,37,250 1,41,43,209 2,44,94,939 5,57,95,726 Office maintenance 3,29,97,136 2,76,32,409 6,57,65,787 5,26,05,609 12,07,04,514 Repairs to building 1,56,70,880 58,28,166 3,78,25,114 1,40,82,937 3,95,22,458 Repairs to plant and machinery 77,70,253 39,97,679 1,25,87,503 56,41,957 2,09,12,187 Power and fuel 4,74,69,875 2,50,08,754 9,36,01,197 4,54,34,710 11,70,91,723 Insurance charges 1,22,65,954 29,35,472 2,50,28,740 56,93,020 2,84,22,698 Rates and taxes 1,01,94,171 36,14,053 1,69,20,917 48,12,483 97,28,274 Donations 1,55,98,500 1,70,01,694 3,98,49,325 3,28,09,063 7,21,92,883 Auditor's remuneration audit fees 5,37,500 4,47,000 10,75,000 8,93,250 17,85,000 certification charges -- -- -- -- 2,00,000 out-of-pocket expenses 50,000 50,000 1,00,000 1,00,000 2,00,000 Bad loans and advances written off -- -- -- -- 4,141 Bad debts written off -- 27,70,254 -- 27,70,254 27,70,254 Provision for bad and doubtful debts 3,53,20,752 4,51,07,005 10,46,85,674 4,91,94,461 19,27,45,549 Provision for doubtful loans and 5,78,808 -- 5,71,148 (1,412) 7,10,404 advances Bank charges and commission 7,63,655 3,46,297 11,80,171 8,41,396 54,23,907 Commission to non-whole time directors 24,00,000 15,00,000 48,00,000 30,00,000 59,22,049 Postage and courier 76,62,174 47,28,893 1,93,64,712 96,06,851 2,27,86,459 Books and periodicals 25,16,352 50,60,324 58,58,109 89,14,545 1,69,10,978 Research grants 25,00,000 25,00,000 50,00,000 50,00,000 1,00,00,000 Freight charges 9,05,451 16,86,320 21,15,362 22,30,226 55,72,484 Professional membership and seminar participation fees 36,77,150 61,60,531 90,30,002 90,52,158 2,17,10,613 Transaction processing fee and filing 90,42,978 25,92,220 2,28,92,377 29,64,845 1,52,76,339 fees Other miscellaneous expenses 16,17,104 1,03,07,117 85,51,349 1,92,23,411 1,86,63,813 ------------ ----------- ------------ ------------ ------------ 50,80,53,479 42,55,83,545 109,59,88,820 71,60,53,863 172,82,35,210 ============ ============ ============= ============ ============= OTHER INCOME Interest received on deposits with banks and others 11,78,69,505 9,63,60,870 23,59,44,565 17,20,17,189 38,46,83,890 (Tax deducted at source Rs. 2,08,07,555; Rs. 42,26,973; Rs. 3,79,14,078; Rs. 1,11,29,180 and Rs. 4,30,12,428 respectively) Exchange differences * 2,56,11,312 9,68,21,421 3,82,28,604 17,09,97,401 20,17,12,483 Miscellaneous income 31,03,192 26,05,326 73,50,445 38,80,559 73,18,542 ------------ ----------- ------------ ------------ ------------ 14,65,84,009 19,57,87,617 28,15,23,614 34,68,95,149 59,37,14,915 ============ ============ ============ ============ ============
*arising on translation of foreign currency deposits maintained abroad includes a realized gain of Rs. Nil; Rs. 3,53,92,000; Nil; Rs 3,53,92,000 and Rs. 5,06,25,885 respectively PROVISION FOR TAXATION Current year Income taxes 35,05,00,000 17,75,00,000 64,61,00,000 30,06,00,000 71,31,00,000 Deferred taxes (2,05,00,000) -- (3,11,00,000) -- -- ------------ ------------ ------------ ------------ ------------ 33,00,00,000 17,75,00,000 61,50,00,000 30,06,00,000 71,31,00,000 Prior years -- -- -- 1,40,00,000 1,40,00,000 ------------ ------------ ------------ ------------ ------------ 33,00,00,000 17,75,00,000 61,50,00,000 31,46,00,000 72,71,00,000 ============ ============ ============ ============ ============
8 1. EXTRACTS OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS Company overview Infosys Technologies Limited ("Infosys" or the "company"), a world leader in consulting and information technology ("IT") services partners with Global 2000 companies to provide business consulting, systems integration, application development and product engineering services. Through these services, Infosys enables its clients to fully exploit technology for business transformation. Clients leverage Infosys' Global Delivery Model to achieve higher quality, rapid time-to-market and cost- effective solutions. 1.1 Significant accounting policies Basis of preparation of financial statements The financial statements are prepared under the historical cost convention, in accordance with Indian Generally Accepted Accounting Principles ("GAAP") on the accrual basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 1956. These accounting policies have been consistently applied, except for certain recently issued accounting standards made mandatory by the ICAI effective the current fiscal year and adopted by the company, as described below. All amounts are stated in Indian Rupees, except as otherwise specified. The ICAI issued accounting standards on segment reporting, related party disclosures, leases, earnings per share and accounting for taxes on income that became mandatory effective accounting periods commencing on or after April 1, 2001. The company adopted the accounting standards on segment reporting, related party disclosures and earnings per share from the year ended March 31, 2001. The standards on accounting for leases and income taxes are adopted effective from April 1, 2001. The accounting standard on consolidated financial statements became effective from April 1, 2001. Although Yantra Corporation, USA, is a subsidiary of Infosys as per the Companies Act, 1956, the financial statements have not been consolidated since the company does not have control as envisaged by the accounting standard on consolidated financial statements issued by the ICAI. The company does not have any investments in associates and accordingly the related accounting standard, mandatory effective April 1, 2002, does not affect these financials statements. The preparation of the financial statements in conformity with GAAP requires that the management of the company ("Management") make estimates and assumptions that affect the reported amounts of income and expenses of the period, reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as of the date of the financial statements. Examples of such estimates include expected development costs to complete software contracts, provisions for doubtful debts, future obligations under employee retirement benefit plans and the useful lives of fixed assets. Actual results could differ from those estimates. Management's statement on significant accounting policies contained in the audited financial statements There are no changes in the accounting policies during the quarter or the half-year ended September 30, 2001. The significant accounting policies of the company relate to revenue recognition, expenditure, fixed assets and capital work-in-progress, depreciation, retirement benefits to employees - principally gratuity, superannuation and provident fund benefits, research and development, income tax, earnings per share, foreign currency transactions and investments. 1.2 Notes on accounts The previous period's/year's figures have been regrouped/reclassified, wherever necessary, to conform to the current period's presentation. The company is engaged in the development and maintenance of computer software. The production and sale of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956. 1.2.1 Deferred income taxes Consequent to the standard on accounting for taxes on income becoming mandatory effective April 1, 2001, the company recorded the cumulative net deferred tax credit of Rs. 15,53,00,000 until April 1, 2001, as an addition to the general reserves. The deferred tax credit of Rs. 2,05,00,000 for the quarter and Rs. 3,11,00,000 for the half-year ended September 30, 2001 are included in the provision for taxation for the respective periods. 1.2.2 Investments There were no investments during the quarter ended September 30, 2001. During the half-year ended September 30, 2001, the company invested Rs. 10.33 crore in Workadia, Inc., USA ("Workadia") purchasing 4,40,000 fully paid Series "B" convertible preferred stock, par value of US$ 0.001, at US$ 5.00 each. Workadia will provide companies with comprehensive, customizable business intranets through browser accessed hosted portals and also offer consulting services to help customers select and deploy their intranet applications, content and services. 9 An amount of Rs. 15,28,98,608 was provided for the investments in Alpha Thinx and EC Cubed, Inc., USA, in the latter half of the year ended March 31, 2001, when the investee companies filed for liquidation. 1.2.3 Fixed assets Depreciation charge to the profit and loss account relating to assets costing less than Rs. 5,000/- each
in Rs. -------------------------------------------------------------------------------- Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- Charged during the period/year 1,48,25,661 6,63,81,667 7,23,50,075 10,04,17,795 34,99,43,502 ----------- ----------- ----------- ------------ ------------ Profit/loss on disposal of fixed assets ----------- ----------- ----------- ------------ ------------ Profit on sale of fixed assets 53,11,194 1,03,798 57,00,103 1,45,416 11,22,939 Loss on sale of fixed assets (54,02,102) (1,12,518) (54,97,341) (1,99,245) (2,05,049) ----------- ----------- ----------- ------------ ------------ Profit/(loss) on sale of fixed assets, net (90,908) (8,720) 2,02,762 (53,829) 9,17,890 =========== =========== =========== ============ ============
1.2.4 Capital commitments and contingent liabilities a. The company has outstanding guarantees and counter guarantees of Rs. 15,67,25,000 as at September 30, 2001, to various banks, in respect of the guarantees given by the banks in favor of various government authorities. The guarantees outstanding as at September 30, 2000 were Rs. 6,51,30,000 and as at March 31, 2001 were Rs. 6,83,05,000. b. Claims against the company, not acknowledged as debts, amounted to Rs. 3,22,39,754 as at September 30, 2001. Such claims as at September 30, 2000 were Rs. 8,75,532 and as at March 31, 2001 Rs. 8,75,532. c. Outstanding forward contracts amounted to US$ 26,000,000 (approximately Rs. 124,41,00,000 at half-year end exchange rates) at September 30, 2001. Such contracts as at September 30, 2000 were Rs. Nil and as at March 31, 2001 were US$ 20,000,000 (approximately Rs. 93,12,00,000 at year end exchange rates). d. The estimated amount of contracts remaining to be executed on capital account, and not provided for (net of advances) is Rs. 67,46,84,520 at September 30, 2001. The amount of such contracts as at September 30, 2000 was Rs. 121,56,43,540 and as at March 31, 2001 was Rs. 158,25,35,171. Obligations on long-term non-cancelable operating leases The maximum obligations on long-term non-cancelable operating leases payable as per the rentals stated in the respective agreements are as follows:
in Rs. --------------------------------------------- Half-year ended Year ended September 30, March 31, 2001 2000 2001 ---- ---- ---- Within one year of the balance sheet date 15,89,77,399 5,84,46,825 7,30,43,980 Due in a period between one year and five years 54,71,97,094 19,03,42,680 27,71,79,409 Due after five years 15,08,49,769 5,39,80,450 14,40,05,657 ------------ ----------- ------------ 85,70,24,262 30,27,69,955 49,42,29,046 ============ ============ ============
The operating lease arrangements extend for a maximum of ten years from their respective dates of inception and relate to rented overseas premises. 1.2.5 Balance of unutilized money raised by issue of American Depositary Shares ("ADSs") During the year ended March 31, 1999, Infosys made an Initial Public Offering of ADS, of US$ 70,380,000, equivalent to Rs. 296,86,00,000. The issue proceeds net of expenses of Rs. 19,68,00,000 are entirely utilized as of the year ended March 31, 2001. The unutilized ADSs proceeds as at September 30, 2001 are Rs. Nil (as at September 30, 2000 - Rs. Nil and as at March 31, 2001 - Rs. Nil). 1.2.6 Stock option plans The company currently has three stock option plans. These are summarized below. 1994 Stock Option Plan ("the 1994 Plan") As of September 30, 2001 the options to acquire 2,98,600 shares were outstanding with the Employee Welfare Trust and options to acquire 3,23,000 shares are outstanding with the employees under the 1994 Plan. These options were granted at an exercise price of Rs. 50/- (post split) per option. Additionally, 13,87,000 shares earlier issued are subject to lock-in. No options were issued under this plan during the period. 10 1998 Stock Option Plan ("the 1998 Plan") The 1998 Plan provides for the grant of stock options to employees. The options may be issued at an exercise price that is not less than 90% of the fair market value of the underlying equity share on the date of the grant. The 1998 Plan automatically expires in January 2008, unless terminated earlier. All options under the 1998 Plan are exercisable for ADSs representing equity shares.
Quarter ended Half-year ended Year ended Number of options granted, September 30, September 30, March 31, exercised and forfeited 2001 2000 2001 2000 2001 ----------------------- ---- ---- ---- ---- ---------- Options granted, beginning of period/year ` 16,26,486 8,23,366 15,65,506 6,89,500 6,89,500 Granted during the period/year 5,04,900 85,300 6,02,700 2,32,000 9,64,840 Exercised during the period/year Nil Nil (5,200) (1,334) (12,434) Forfeited during the period/year (21,570) (37,200) (53,190) (48,700) (76,400) ---------- ---------- ---------- ---------- ---------- Options granted, end of period/year 21,09,816 8,71,466 21,09,816 8,71,466 15,65,506 ========== ========== ========== ========== ========== Weighted average exercise price US$ 77.13 US$ 83.40 US$ 77.13 US$ 83.40 US$ 90.98 (Rs. 3,691) (Rs. 3,837) (Rs. 3,691) (Rs. 3,837) (Rs. 4,236) ---------- ---------- ---------- ---------- ----------
1999 Stock Option Plan ("the 1999 Plan") Options will be issued to employees at an exercise price that is not less than the fair market value. Under the 1999 Plan, options may be issued to employees at exercise prices that are less than the fair market value only if specifically approved by the members of the company in a general meeting. No approval has been sought to date in this regard.
Quarter ended Half-year ended Year ended Number of options granted, September 30, September 30, March 31, exercised and forfeited 2001 2000 2001 2000 2001 ----------------------- ---- ---- ---- ---- ---- Options granted, beginning of period/year 31,67,370 16,41,850 27,93,980 10,06,800 10,06,800 Granted during the period/year 10,37,570 2,95,450 14,52,820 9,54,100 19,57,830 Exercised during the period/year Nil Nil Nil Nil (1,200) Forfeited during the period/year (63,880) (54,300) (1,05,740) (77,900) (1,69,450) --------- --------- --------- --------- --------- Options granted, end of period/year 41,41,060 18,83,000 41,41,060 18,83,000 27,93,980 ========= ========= ========= ========= ========= Weighted average exercise price Rs. 4,675 Rs. 5,343 Rs. 4,675 Rs. 5,343 Rs. 5,572 --------- --------- --------- --------- ---------
The aggregate options outstanding and considered for dilution as at September 30, 2001 are 51,95,968 (as at September 30, 2000 - 23,18,733 options and as at March 31, 2001 - 35,76,733 options). 1.2.7 Loans and advances Deposits with financial institutions and a body corporate comprise:
in Rs. ------ As at September 30, As at September 30, As at March 31, 2001 2000 2001 ---- ---- ---- Deposits with financial institutions: Housing Development Finance Corporation Limited 96,11,92,183 10,16,06,063 50,87,03,015 ICICI Limited 60,81,84,306 50,84,73,016 50,87,01,373 IDBI Limited 29,35,26,712 -- 40,35,30,424 Deposits with body corporate: GE Capital Services India Limited 100,86,64,098 50,60,63,986 50,58,17,345 ------------- ------------ ------------ 287,15,67,299 111,61,43,065 192,67,52,157 ============= ============= =============
The above amounts include interest accrued but not due amounting to Rs. 3,15,35,105 (the half-year ended September 30, 2000 - Rs. 1,61,10,876 and the year ended March 31, 2001 - Rs. 2,67,52,157). The financial institutions and the body corporate have superior credit ratings from a premier credit rating agency in the country. Mr. Deepak M Satwalekar, Director, is also Director of HDFC. Mr. N R Narayana Murthy, Chairman and CEO, and Prof. Marti G. Subrahmanyam, Director, are also directors in ICICI Limited. Except as directors in these financial institutions, these persons have no direct interest in these transactions. 11 1.2.8 Aggregate expenses Following are the aggregate amounts incurred on certain specific expenses that are required to be disclosed under schedule VI to the Companies Act, 1956:
in Rs. Quarter ended Half-year ended Year ended September 30, September 30, September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- Salaries and bonus including overseas staff expenses 270,78,19,249 160,15,84,651 523,91,99,968 293,25,93,247 684,32,51,596 Contribution to provident and other funds 7,20,46,850 7,43,79,574 14,22,73,852 16,93,51,595 33,45,76,308 Foreign travel expenses 34,22,89,431 35,90,06,400 66,46,49,474 66,11,53,479 147,22,11,655 Consumables 69,37,335 1,04,12,879 1,08,53,070 1,95,07,075 5,86,87,245 Cost of software packages for - own use 9,13,86,128 12,25,78,520 17,13,60,811 19,79,84,826 31,85,81,751 Cost of software packages for - banking products 2,03,97,419 49,60,448 6,04,55,447 1,33,11,277 5,70,13,753 Computer maintenance 1,72,23,262 1,23,01,888 2,90,42,445 2,71,11,288 7,19,42,078 Communication expenses 10,60,00,134 5,24,77,651 20,82,07,298 9,94,83,388 31,52,55,986 Consultancy charges 2,22,45,041 1,85,64,421 4,26,17,934 2,98,55,683 9,19,25,609 Provision for post-sales client support 95,36,022 82,28,718 1,05,08,862 80,48,558 1,83,20,669 Traveling and conveyance 5,60,13,118 4,97,87,265 9,81,97,219 7,70,39,464 18,40,64,822 Rent 5,52,02,947 3,68,42,809 12,03,22,838 6,95,37,037 16,94,82,708 Telephone charges 4,04,00,978 3,59,58,729 8,28,43,292 6,50,89,763 14,02,60,363 Professional charges 4,74,54,646 3,86,42,679 8,59,03,988 6,42,07,750 20,40,21,385 Printing and stationery 1,01,93,207 1,10,57,396 4,16,23,883 3,61,24,297 6,25,54,206 Advertisements 83,61,048 1,75,71,241 1,44,71,713 2,88,75,539 6,30,77,831 Office maintenance 3,35,49,789 2,94,09,238 6,70,51,372 5,67,21,754 12,84,32,642 Repairs to building 1,56,70,880 58,28,166 3,78,25,114 1,40,82,937 3,95,22,458 Repairs to plant and machinery 77,79,382 39,97,679 1,26,96,868 73,83,941 2,26,54,171 Power and fuel 4,76,61,680 2,51,75,524 9,39,52,462 4,58,26,006 11,78,45,258 Brand building 5,80,29,091 3,92,19,123 7,66,50,375 5,01,77,269 10,52,01,392 Insurance charges 1,22,65,954 72,76,793 2,50,28,740 1,25,66,191 5,17,55,298 Rates and taxes 1,02,47,677 62,78,668 1,92,46,336 98,42,999 1,82,17,524 Commission charges 1,49,06,774 67,61,132 2,00,83,642 90,25,721 1,79,03,784 Donations 1,55,98,500 1,70,01,694 3,98,49,325 3,28,09,063 7,21,92,883 Auditor's remuneration - audit fees 5,37,500 4,47,000 10,75,000 8,93,250 17,85,000 - certification charges -- -- -- -- 2,00,000 - out-of-pocket expenses 50,000 50,000 1,00,000 1,00,000 2,00,000 Bad loans and advances written off -- -- -- -- 4,141 Bad debts written off -- 27,70,254 -- 27,70,254 27,70,254 Provision for bad and doubtful debts 3,53,20,752 4,51,07,005 10,46,85,674 4,91,94,461 19,27,45,549 Provision for doubtful loans and advances 5,78,808 -- 5,71,148 (1,412) 7,10,404 Bank charges and commission 8,52,132 3,94,040 13,32,499 9,24,343 59,39,483 Commission to non-whole time directors 24,00,000 15,00,000 48,00,000 30,00,000 59,22,049 Postage and courier 80,98,007 47,28,893 1,98,00,545 96,06,851 2,27,86,459 Books and periodicals 27,37,088 50,60,324 60,78,845 89,14,545 1,69,10,978 Research grants 25,00,000 25,00,000 50,00,000 50,00,000 1,00,00,000 Freight charges 9,05,451 16,86,320 21,15,362 22,30,226 55,72,484 Professional membership and seminar participation fees 51,41,741 61,60,531 1,04,94,593 90,52,158 2,17,10,613 Marketing expenses 1,11,35,672 1,75,28,494 2,64,89,952 2,28,51,535 4,26,87,545 Sales promotion expenses 10,30,384 4,24,831 21,65,010 6,11,902 70,16,656 Transaction processing fee and filing fees 90,42,978 25,92,220 2,28,92,377 29,64,845 1,52,76,339 Other miscellaneous expenses 26,13,063 1,05,02,070 96,95,788 1,98,49,378 2,60,46,292 ------------- ------------- ------------- ------------- ------------- 391,21,60,118 269,67,55,268 763,22,13,121 487,56,72,483 1135,72,37,621 ============= ============= ============= ============= ==============
1.2.9 Pro-forma disclosures relating to the Employee Stock Option Plans ("ESOPs") The company's 1994 stock option plan was established prior to the SEBI guidelines on stock options. Had the stock compensation costs for this stock option plan been determined as per the guidelines issued by SEBI, the company's reported net profit would have been reduced to the pro forma amounts indicated below.
in Rs. ------ Quarter ended Half-year ended Year ended September 30, September 30, September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---- ---- ---- ---- ---- Net profit: - As reported 201,56,13,001 154,01,22,579 391,58,83,460 280,80,85,328 628,81,36,341 - Adjusted pro forma 195,63,50,154 148,20,22,829 379,75,12,909 269,34,93,331 605,55,42,584 ------------- ------------- ------------- ------------- -------------
12 1.2.10 Segment reporting The company's operations predominantly relate to providing Information Technology ("IT") services to customers operating in various industry segments. Accordingly, IT service revenues represented along industry classes comprise the primary basis of segmental information set out below. The secondary segment is geographical, determined based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized. Fixed assets used in the company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The company 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.
in Rs. ------------------------------------------------------------------------------------------------------------------------------------ Quarter ended September 30, 2001 Financial services Manufacturing Telecom Retail Others Total ------------------------------------------------------------------------------------------------------------------------------------ Revenues 248,44,01,536 111,83,87,688 99,39,08,761 74,75,06,908 115,71,22,142 650,13,27,035 Identifiable operating expenses 89,87,79,498 47,01,41,121 26,99,83,498 20,62,78,106 43,89,00,450 228,40,82,673 Allocated expenses 63,47,52,412 27,65,60,391 24,57,78,632 18,48,47,173 28,61,38,837 162,80,77,445 ------------------------------------------------------------------------------------------------ Segmental operating income 95,08,69,626 37,16,86,176 47,81,46,631 35,63,81,629 43,20,82,855 258,91,66,917 Unallocable expenses 39,01,37,925 ------------- Operating income 219,90,28,992 Other income (expense), net 14,65,84,009 ------------- Net profit before taxes 234,56,13,001 Income taxes 33,00,00,000 ------------------------------------------------------------------------------------------------------------------------------------ Net profit after taxes 201,56,13,001 ====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------ Quarter ended September 30, 2000 Financial services Manufacturing Telecom Retail Others Total ------------------------------------------------------------------------------------------------------------------------------------ Revenues 151,22,64,687 78,06,67,611 86,54,25,809 31,67,28,002 98,58,71,668 446,09,57,777 Identifiable operating expenses 51,26,13,534 28,25,08,460 21,61,18,798 13,55,77,527 29,79,32,026 144,47,50,345 Allocated expenses 42,77,08,527 21,82,32,784 24,19,26,629 8,85,40,158 27,55,96,825 125,20,04,923 ------------------------------------------------------------------------------------------------ Segmental operating income 57,19,42,626 27,99,26,367 40,73,80,382 9,26,10,317 41,23,42,817 176,42,02,509 Unallocable expenses 24,23,67,547 ------------- Operating income 152,18,34,962 Other income (expense), net 19,57,87,617 ------------- Net profit before taxes 171,76,22,579 Income taxes 17,75,00,000 ------------------------------------------------------------------------------------------------------------------------------------ Net profit after taxes 154,01,22,579 ====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------ Half-year ended September 30, 2001 Financial services Manufacturing Telecom Retail Others Total ------------------------------------------------------------------------------------------------------------------------------------ Revenues 474,02,16,811 224,23,80,518 201,66,72,628 142,79,49,149 219,92,95,278 1262,65,14,384 Identifiable operating expenses 168,03,57,473 91,62,31,949 52,93,37,240 38,78,46,664 80,44,70,889 431,82,44,215 Allocated expenses 128,09,46,382 57,85,76,455 52,05,94,547 36,76,81,514 56,61,70,008 331,39,68,906 ------------------------------------------------------------------------------------------------ Segmental operating income 177,89,12,956 74,75,72,114 96,67,40,841 67,24,20,971 82,86,54,381 499,43,01,263 Unallocable expenses 74,49,41,417 -------------- Operating income 424,93,59,846 Other income (expense), net 28,15,23,614 -------------- Net profit before taxes 453,08,83,460 Income taxes 61,50,00,000 ------------------------------------------------------------------------------------------------------------------------------------ Net profit after taxes 391,58,83,460 ====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------ Half-year ended September 30, 2000 Financial services Manufacturing Telecom Retail Others Total ------------------------------------------------------------------------------------------------------------------------------------ Revenues 255,75,22,931 148,81,72,341 152,31,56,337 63,67,05,016 181,07,01,301 801,62,57,926 Identifiable operating expenses 95,83,47,200 53,92,52,139 39,78,71,447 25,59,62,882 57,60,60,052 272,74,93,720 Allocated expenses 69,70,79,322 39,49,09,563 40,61,73,886 16,84,44,230 48,15,71,762 214,81,78,763 ------------------------------------------------------------------------------------------------ Segmental operating income 90,20,96,409 55,40,10,639 71,91,11,004 21,22,97,904 75,30,69,487 314,05,85,443 Unallocable expenses 41,97,39,264 -------------- Operating income 272,08,46,179 Other income (expense), net 34,68,95,149 -------------- Net profit before taxes 306,77,41,328 Income taxes 31,46,00,000 ------------------------------------------------------------------------------------------------------------------------------------ Net profit after taxes 275,31,41,328 ====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------ Year ended March 31, 2001 Financial services Manufacturing Telecom Retail Others Total ------------------------------------------------------------------------------------------------------------------------------------ Revenues 640,77,55,042 338,84,20,263 350,11,16,331 172,86,39,345 397,97,27,826 1900,56,58,807 Identifiable operating expenses 225,87,90,591 130,66,14,108 88,39,38,378 54,74,24,303 120,92,12,385 620,59,79,765 Allocated expenses 177,68,81,844 90,69,15,538 93,89,68,074 46,30,82,749 106,54,09,651 515,12,57,856 ------------------------------------------------------------------------------------------------ Segmental operating income 237,20,82,607 117,48,90,617 167,82,09,879 71,81,32,293 170,51,05,790 764,84,21,186 Unallocable expenses 128,18,43,760 -------------- Operating income 636,65,77,426 Other income (expense), net 59,37,14,915 -------------- Net profit before taxes 696,02,92,341 Income taxes 72,71,00,000 ------------------------------------------------------------------------------------------------------------------------------------ Net profit after taxes 623,31,92,341 ====================================================================================================================================
13 Geographic segments
in Rs. -------------------------------------------------------------------------------------------------------------------------- Quarter ended September 30, 2001 North America Europe India Rest of the World Total -------------------------------------------------------------------------------------------------------------------------- Revenues 462,51,22,868 122,87,01,750 11,85,97,036 52,89,05,381 650,13,27,035 Identifiable operating expenses 160,95,46,860 46,10,58,413 4,92,76,258 16,42,01,142 228,40,82,673 Allocated expenses 115,78,39,235 30,75,89,471 3,37,80,802 12,88,67,937 162,80,77,445 --------------------------------------------------------------------------------- Segmental operating income 185,77,36,773 46,00,53,866 3,55,39,976 23,58,36,302 258,91,66,917 Unallocable expenses 39,01,37,925 -------------- Operating income 219,90,28,992 Other income (expense), net 14,65,84,009 -------------- Net profit before taxes 234,56,13,001 Income taxes 33,00,00,000 -------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 201,56,13,001 ==========================================================================================================================
-------------------------------------------------------------------------------------------------------------------------- Quarter ended September 30, 2000 North America Europe India Rest of the World Total -------------------------------------------------------------------------------------------------------------------------- Revenues 334,35,28,870 80,95,62,695 4,83,71,864 25,94,94,348 446,09,57,777 Identifiable operating expenses 104,96,75,376 29,16,71,532 1,88,53,405 8,45,50,032 144,47,50,345 Allocated expenses 94,19,91,165 22,80,82,644 1,18,73,362 7,00,57,752 125,20,04,923 --------------------------------------------------------------------------------- Segmental operating income 135,18,62,329 28,98,08,519 1,76,45,097 10,48,86,564 176,42,02,509 Unallocable expenses 24,23,67,547 -------------- Operating income 152,18,34,962 Other income (expense), net 19,57,87,617 -------------- Net profit before taxes 171,76,22,579 Income taxes 17,75,00,000 -------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 154,01,22,579 ==========================================================================================================================
-------------------------------------------------------------------------------------------------------------------------- Half-year ended September 30, 2001 North America Europe India Rest of the World Total -------------------------------------------------------------------------------------------------------------------------- Revenues 904,59,83,708 244,28,48,554 28,07,62,898 85,69,19,224 1262,65,14,384 Identifiable operating expenses 303,13,15,245 89,13,98,046 9,76,98,196 29,78,32,728 431,82,44,215 Allocated expenses 235,90,45,026 63,74,89,060 9,52,63,936 22,21,70,884 331,39,68,906 --------------------------------------------------------------------------------- Segmental operating income 365,56,23,437 91,39,61,448 8,78,00,766 33,69,15,612 499,43,01,263 Unallocable expenses 74,49,41,417 -------------- Operating income 424,93,59,846 Other income (expense), net 28,15,23,614 -------------- Net profit before taxes 453,08,83,460 Income taxes 61,50,00,000 -------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 391,58,83,460 ==========================================================================================================================
-------------------------------------------------------------------------------------------------------------------------- Half-year ended September 30, 2000 North America Europe India Rest of the World Total -------------------------------------------------------------------------------------------------------------------------- Revenues 599,19,15,286 141,93,90,169 9,30,93,590 51,18,58,881 801,62,57,926 Identifiable operating expenses 199,86,44,657 51,73,75,438 3,57,65,818 17,57,07,807 272,74,93,720 Allocated expenses 160,77,70,398 38,13,87,489 2,42,28,217 13,47,92,659 214,81,78,763 --------------------------------------------------------------------------------- Segmental operating income 238,55,00,231 52,06,27,242 3,30,99,555 20,13,58,415 314,05,85,443 Unallocable expenses 41,97,39,264 -------------- Operating income 272,08,46,179 Other income (expense), net 34,68,95,149 -------------- Net profit before taxes 306,77,41,328 Income taxes 31,46,00,000 -------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 275,31,41,328 ==========================================================================================================================
-------------------------------------------------------------------------------------------------------------------------- Year ended March 31, 2001 North America Europe India Rest of the World Total -------------------------------------------------------------------------------------------------------------------------- Revenues 1396,90,84,594 358,05,91,607 26,53,92,386 119,05,90,220 1900,56,58,807 Identifiable operating expenses 443,71,64,129 125,44,88,260 8,95,83,246 42,47,44,130 620,59,79,765 Allocated expenses 377,03,71,740 96,78,27,796 8,59,85,652 32,70,72,668 515,12,57,856 --------------------------------------------------------------------------------- Segmental operating income 576,15,48,725 135,82,75,551 8,98,23,488 43,87,73,422 764,84,21,186 Unallocable expenses 128,18,43,760 -------------- Operating income 636,65,77,426 Other income (expense), net 59,37,14,915 -------------- Net profit before taxes 696,02,92,341 Income taxes 72,71,00,000 -------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 623,31,92,341 ==========================================================================================================================
14 1.2.11 Related party transactions The company entered into related party transactions during the half-year ended September 30, 2001 with Yantra Corporation, USA, the subsidiary of the company, and key management personnel. The transactions with Yantra Corporation comprise sales of Rs. 2,95,94,714 during the half-year ended September 30, 2001 (the half-year ended September 30, 2000 - Rs. 10,37,00,336 and the year ended March 31, 2001 - Rs. 19,64,85,967). The outstanding dues from the subsidiary as at September 30, 2001 are Rs. 51,93,704 (as at September 30, 2000 - Rs. 1,79,19,054 and as at March 31, 2001 - Rs. 99,80,017). Key management personnel are non-director officers of the company, who have the authority and responsibility for planning, directing and controlling the activities of the company. The loans and advances receivable from non-director officers as at September 30, 2001 are Rs. 2,26,54,403 (as at September 30, 2000 - Rs. 94,19,631 and as at March 31, 2001 - Rs. 1,05,74,738). 1.2.12 Reconciliation of basic and diluted shares used in computing earnings per share
----------------------------------------------------------------------------------------------------------------- Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------- Number of shares considered as basic weighted average shares outstanding 6,61,60,717 6,61,51,036 6,61,59,892 6,61,51,205 6,61,52,131 Add: Effect of dilutive issues of shares/stock options 1,73,889 8,32,224 1,52,840 7,88,929 2,06,180 ----------------------------------------------------------------------------------------------------------------- Number of shares considered as weighted average shares and potential shares outstanding 6,63,34,606 6,69,83,260 6,63,12,732 6,69,40,134 6,63,58,311 -----------------------------------------------------------------------------------------------------------------
15 Statement of cash flows
---------------------------------------------------------------------------------------------------------------------------------- in Rs. ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from operating activities Profit before tax 234,56,13,001 171,76,22,579 453,08,83,460 306,77,41,328 696,02,92,341 Adjustments to reconcile profit before tax to cash provided By operating activities (Profit)/Loss on sale of fixed assets 90,908 8,720 (202,762) 53,829 (9,17,890) Depreciation and amortization 39,01,37,925 24,23,67,547 74,49,41,417 41,97,39,264 112,89,45,152 Income from investments (11,78,69,505) (9,63,60,870) (23,59,44,565) (17,20,17,189) (38,46,83,890) Effect of Deferred Taxes (2,05,00,000) -- (3,11,00,000) -- -- Provisions on long-term investments -- -- -- -- 15,28,98,608 Income taxes paid during the period/year (40,95,08,021) (23,58,99,316) (78,84,04,779) (32,25,31,791) (85,18,05,440) Exchange differences on translation of foreign currency deposits (2,56,11,312) (9,68,21,421) (3,82,28,604) (17,09,97,401) (20,17,12,483) Changes in current assets and liabilities Sundry debtors (34,47,58,003) (14,65,76,914) (41,22,62,788) (106,87,87,493) (166,19,21,164) Loans and advances (9,15,16,917) (5,07,48,178) (18,09,83,759) (13,17,94,697) (34,72,64,731) Current liabilities and provisions 26,17,27,217 34,84,56,392 45,88,44,603 75,80,15,199 60,92,54,409 ---------------------------------------------------------------------------------------------------------------------------------- Net cash generated by operating activities 198,78,05,293 168,20,48,539 404,75,42,223 237,94,21,049 540,30,84,912 ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from financing activities Proceeds on exercise of stock options -- -- 41,39,313 10,01,506 2,37,85,906 Dividends paid during the period/year, including Dividend Tax -- -- (54,67,96,837) (22,02,44,213) (42,20,05,883) ---------------------------------------------------------------------------------------------------------------------------------- Net cash used in financing activities -- -- (54,26,57,524) (21,92,42,707) (39,82,19,977) ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from investing activities Purchases of fixed assets and change in capital work-in-progress (129,76,83,717) (114,01,44,667) (231,50,57,718) (199,85,14,640) (463,35,45,172) Proceeds on disposal of fixed assets 96,89,153 1,87,023 1,03,23,427 2,37,761 22,73,671 Long-term investments in securities -- (9,56,09,608) (10,32,68,000) (22,96,18,268) (26,63,64,960) Income from investments 11,78,69,505 9,63,60,870 23,59,44,565 17,20,17,189 38,46,83,890 ---------------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (117,01,25,059) (113,92,06,382) (217,20,57,726) (205,58,77,958) (451,29,52,571) ---------------------------------------------------------------------------------------------------------------------------------- Effect of exchange differences on translation of foreign currency deposits 2,56,11,312 9,68,21,421 3,82,28,604 17,09,97,401 20,17,12,483 ---------------------------------------------------------------------------------------------------------------------------------- Net (decrease)/increase in cash and cash equivalents during the period/year 84,32,91,546 63,96,63,578 137,10,55,577 27,52,97,785 69,36,24,847 Cash and cash equivalents at the beginning of the period/year 630,51,26,473 471,93,71,802 577,73,62,442 508,37,37,595 508,37,37,595 ---------------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at the end of the period/year 714,84,18,019 535,90,35,380 714,84,18,019 535,90,35,380 577,73,62,442 ==================================================================================================================================
AUDITORS' CERTIFICATE TO THE MEMBERS OF INFOSYS TECHNOLOGIES LIMITED We have examined the cash flow statement of Infosys Technologies Limited (the company) for the quarter and half-year ended September 30, 2001. The statement has been prepared by the company in accordance with the requirements of Clause 32 of the listing agreements entered into with Indian Stock Exchanges. for Bharat S Raut & Co. Chartered Accountants Bangalore S. Balasubrahmanyam October 10, 2001 Partner 16 Statement of cash flows
--------------------------------------------------------------------------------------------------------------------------------- in Rs. --------------------------------------------------------------------------------------------------------------------------------- Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 --------------------------------------------------------------------------------------------------------------------------------- Income taxes paid during the period/year Charge as per the Profit and Loss Account 33,00,00,000 17,75,00,000 61,50,00,000 31,46,00,000 72,71,00,000 Add: Tax provided on Intellectual property rights transferred -- -- -- 3,43,96,000 3,43,96,000 Increase in advance income taxes 43,00,08,021 21,54,48,061 80,40,45,483 30,20,80,536 69,33,01,439 Less: Increase/(Decrease) in income tax provision (35,05,00,000) (15,70,48,745) (63,06,40,704) (32,85,44,745) (60,29,91,999) --------------------------------------------------------------------------------------------------------------------------------- 40,95,08,021 23,58,99,316 78,84,04,779 32,25,31,791 85,18,05,440 ================================================================================================================================= Change in loans and advances during the period/year As per the Balance Sheet 623,26,38,007 288,54,93,594 623,26,38,007 288,54,93,594 430,27,93,623 Less: Deposits with financial institutions and body corporate, included in cash and cash equivalents (287,15,67,299) (111,61,43,065) (287,15,67,299) (111,61,43,065) (192,67,52,157) Advance income taxes separately considered (204,14,43,275) (84,61,76,889) (204,14,43,275) (84,61,76,889) (123,73,97,792) --------------------------------------------------------------------------------------- 131,96,27,433 92,31,73,640 131,96,27,433 92,31,73,640 113,86,43,674 Less: Opening balance considered (122,81,10,516) (87,24,25,462) (113,86,43,674) (79,13,78,943) (79,13,78,943) --------------------------------------------------------------------------------------------------------------------------------- 9,15,16,917 5,07,48,178 18,09,83,759 13,17,94,697 34,72,64,731 ================================================================================================================================= Change in current liabilities and provisions during the period/year As per the Balance Sheet 428,80,08,248 272,77,79,820 428,80,08,248 272,77,79,820 319,85,01,451 Less: Provisions separately considered in the cash flow statement Income taxes (185,96,52,445) (95,45,64,487) (185,96,52,445) (95,45,64,487) (122,90,11,741) Dividends (49,62,05,378) (16,53,78,418) (49,62,05,378) (16,53,78,418) (49,61,85,878) Dividend tax (5,06,12,949) (3,63,83,252) (5,06,12,949) (3,63,83,252) (5,06,10,959) --------------------------------------------------------------------------------------- 188,15,37,476 157,14,53,663 188,15,37,476 157,14,53,663 142,26,92,873 Less: Opening balance considered (161,98,10,259) (122,29,97,271) (142,26,92,873) (81,34,38,464) (81,34,38,464) --------------------------------------------------------------------------------------------------------------------------------- 26,17,27,217 34,84,56,392 45,88,44,603 75,80,15,199 60,92,54,409 ================================================================================================================================= Purchases of fixed assets and change in capital work-in-progress As per the Balance Sheet 57,57,78,643 62,47,78,371 165,95,41,529 152,22,93,065 349,66,44,427 Less: Opening Capital work-in-progress (164,01,15,365) (53,04,58,784) (170,65,04,250) (56,96,03,505) (56,96,03,505) Add: Closing Capital work-in-progress 236,20,20,439 104,58,25,080 236,20,20,439 104,58,25,080 170,65,04,250 --------------------------------------------------------------------------------------------------------------------------------- 129,76,83,717 114,01,44,667 231,50,57,718 199,85,14,640 463,35,45,172 ================================================================================================================================= Long-term investments in securities during the period/year As per the Balance Sheet 44,44,22,821 45,73,06,737 44,44,22,821 45,73,06,737 34,11,54,821 Add: Provisions on investments -- -- -- -- 15,28,98,608 Less: Non-cash investment (see note below) -- (8,93,40,000) -- (8,93,40,000) (8,93,40,000) --------------------------------------------------------------------------------------- 44,44,22,821 36,79,66,737 44,44,22,821 36,79,66,737 40,47,13,429 Less: Opening balance considered (44,44,22,821) (27,23,57,129) (34,11,54,821) (13,83,48,469) (13,83,48,469) --------------------------------------------------------------------------------------------------------------------------------- -- 9,56,09,608 10,32,68,000 22,96,18,268 26,63,64,960 ================================================================================================================================= Cash and cash equivalents at the end of the period/year As per the Balance Sheet 427,68,50,720 424,28,92,315 427,68,50,720 424,28,92,315 385,06,10,285 Add: Deposits with financial institutions and body corporate, included herein 287,15,67,299 111,61,43,065 287,15,67,299 111,61,43,065 192,67,52,157 --------------------------------------------------------------------------------------------------------------------------------- 714,84,18,019 535,90,35,380 714,84,18,019 535,90,35,380 577,73,62,442 =================================================================================================================================
NOTES ON THE STATEMENT OF CASH FLOWS Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, financing, and investing activities of the company are segregated. Cash flows in foreign currencies are accounted at average monthly exchange rates that approximate the actual rates of exchange prevailing at the dates of the transactions. During the year ended March 31, 2001, the company transferred intellectual property rights in OnScan - a web-based wireless enabled notification product, to OnMobile Systems, Inc., USA (formerly OnScan, Inc.) - a company incubated by Infosys. The product was transferred for a gross consideration of Rs. 8,93,40,000 (approximately US$ 2,000,000) that was received, as equity preferred convertible voting and non-voting stock in OnMobile Systems, Inc. Accordingly the transaction is not considered in this statement of cash flows. 17 At a glance - US GAAP
---------------------------------------------------------------------------------------------- US $ in millions, except as otherwise stated ---------------------------------------------------------------------------------------------- Three months ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 ---------------------------------------------------------------------------------------------- For the period Revenues 137.26 97.94 267.79 178.20 413.85 Operating income 45.16 32.20 87.60 58.60 137.51 Net income 41.29 32.78 80.53 59.61 131.95 Operating income as a percentage of total revenues 32.90% 32.88% 32.71% 32.89% 33.23% Net income as a percentage of total revenues 30.08% 33.48% 30.07% 33.46% 31.88% Basic earnings per share ($) 0.63 0.50 1.23 0.90 2.01 Cash dividend per equity share ($) NA NA 0.16 0.05 0.14 Capital investments 24.82 22.99 45.38 41.14 96.78 At the end of the period Total assets 413.40 279.89 342.35 Property, plant and equipment - net 149.14 79.37 119.77 Cash and cash equivalents 149.39 116.48 124.08 Working capital 201.41 146.05 176.18 Total debt -- -- -- Stockholders' equity 374.07 243.37 311.79 Common stock 8.59 8.59 8.59 Market capitalization 3,288.47 10,583.72 5,783.15 ----------------------------------------------------------------------------------------------
Note: Market capitalization is calculated by considering the Indian market price for the shares outstanding at the period / year end. Revenues (US $ in millions) [BAR CHART] Year ended March 31, 2001 413.85 Half-year ended September 30, 2000 178.20 Half-year ended September 30, 2001 267.79
Operating income (US $ in millions) [BAR CHART] Year ended March 31, 2001 137.51 Half-year ended September 30, 2000 58.60 Half-year ended September 30, 2001 87.60
Net income (US $ in millions) [BAR CHART] Year ended March 31, 2001 131.95 Half-year ended September 30, 2000 59.61 Half-year ended September 30, 2001 80.53
18 FORM 6K (From Page no. 19-49) SHAREHOLDER INFORMATION 1. Listing on stock exchanges Bangalore Stock Exchange Ltd. (BgSE) The Stock Exchange, Mumbai (BSE) National Stock Exchange of India Ltd. (NSE) NASDAQ National Market 2. Registered office Electronics City, Hosur Road, Bangalore - 561 229, India. Tel.: +91-80-852 0261, Fax: +91-80-852 0362 Homepage: www.infy.com
3. Stock market data relating to shares listed in India a. The company's market capitalization is included in the computation of the BSE-30 Sensitive Index (Sensex), the BSE Dollex and S&P CNX NIFTY Index. b. Monthly high and low quotations as well as the volume of shares traded at Mumbai, National and Bangalore Stock Exchanges for the quarter ended September 30, 2001 are:
BSE NSE BgSE ---------------------------------- ---------------------------------- -------------------------- High Low Volume High Low Volume High Low Volume Rs. Rs. Nos. Rs. Rs. Nos. Rs. Rs. Nos. --- --- ---- --- --- ---- --- --- ---- July, 2001 4,028 3,169 84,20,064 3,989 3,200 1,36,16,371 3,600 3,300 610 August 4,000 3,525 48,93,983 3,954 3,523 85,95,527 September 3,575 2,210 97,14,399 3,572 2,115 1,51,39,714 ----- ----- --------- ----- ----- ----------- ----- ----- --- Total 2,30,28,446 3,73,51,612 610 % of volume traded to average shares outstanding 35.94%* 58.29%* 0.0009%* --------- ----------- ------
---------- * The number of shares outstanding is 6,40,70,000. The equity shares underlying the American Depositary Shares (ADSs) have been excluded for the purpose of this calculation. 4. Par value of equity shares Rs. 5 each fully paid-up 5. Share transfers in physical form Karvy Consultants Limited and other communication regarding Registrars and Share Transfer Agents share certificates, dividends, T.K.N. Complex, No. 51/2, Vanivilas Road, change of address etc., in India Opp. National College, Basavanagudi, may be addressed to Bangalore - 560 004, India. Tel.: +91-80-662 1184/92/93, Fax: +91-80-662 1169 E-mail:kumars@karvy.com
6. Share transfer system Shares sent for physical transfer are generally registered and returned within a period of 10 days from the date of receipt, if the documents are clear in all respects. The share transfer committee of the company meets as often as required. The total number of shares transferred in physical form during the three-month period ended September 30, 2001 was 9,000 (quarter ended September 30, 2000 - 2,620). 100.00% of transfers (quarter ended September 30, 2000 - 100.00%) were completed within 10 days. 7. Investors' services - complaints received during
Quarter ended September 30, --------------------------- Nature of complaints 2001 2000 -------------------- ---- ---- Received Attended to Received Attended to -------- ----------- -------- ----------- 1. Non-receipt of share certificates 1 1 - - 2. Non-receipt of bonus shares / split shares _ _ 2 2 3. Letters from Stock Exchanges, SEBI, etc. _ _ - - 4. Non-receipt of dividend 52 52 22 22 -------------------------------------------------------------------- 53 53 24 24 --------------------------------------------------------------------
The company has attended to most of the investors' grievances /correspondence within a period of 10 days from the date of receipt of the same, during the quarter ended September 30, 2001 except in cases that are constrained by disputes or legal impediments. 8. Legal proceedings There are some pending cases relating to disputes over title to shares, in which the company is made a party. However, these cases are not material in nature. 50 9. Categories of shareholders as on September 30,
2001 2000 ----------------------------------------------- ------------------------------------------------ Category No. of Voting No. of shares No. of Voting No. of shares shareholders strength (%) held shareholders strength (%) held ------------ ------------ ---- ------------ ------------ ---- Individuals 89,117 20.25 1,33,95,950 61,940 24.40 1,61,44,158 Companies 3,431 1.09 7,18,433 2,679 2.30 15,18,671 FIIs 361 34.61 2,28,97,389 346 25.27 1,67,16,870 OCBs and NRIs 742 0.67 4,45,388 499 0.75 4,93,441 Founders and their families 23 28.92 1,91,33,460 23 29.24 1,93,45,960 Mutual Funds, Banks, FIs 187 10.11 66,85,980 196 12.76 84,43,277 ITL Employee Welfare Trust** 3 1.20 793,400 3 1.15 7,58,000 Shares in transit in NSDL -- -- -- _ 0.98 6,48,423 Equity shares underlying 1 3.16 20,90,717 1 3.15 20,82,567 American Depositary Shares* ------ ------ ----------- ------ ------ ----------- Total 93,865 100.00 6,61,60,717 65,687 100.00 6,61,51,367 ------ ------ ----------- ------ ------ -----------
---------- * Held by beneficial owners outside India. ** "ITL Employee Welfare Trust" was included in "Individuals" category in the report for the quarter ended September 30, 2000. 10. Financial calendar (tentative and subject to change) Record date for interim dividend payment November 2, 2001 Financial reporting for the third quarter ending December 31, 2001 January 10, 2002 Financial results for the year ending March 31, 2002 April 10, 2002 Annual General Meeting for the year ending March 31, 2002 June 2002
11. Investors' correspondence in India Any queries relating to the financial statements may be addressed to: of the company may be addressed to: The Company Secretary, Mr. T. V. Mohandas Pai, Investors' Service Cell, Director (F&A) and CFO, Infosys Technologies Ltd., Electronics City, Infosys Technologies Ltd., Electronics City, Hosur Road, Bangalore - 561 229, India. Hosur Road, Bangalore - 561 229, India. Tel.: +91-80-852 0440, Fax: +91-80-852 0362 Tel.: +91-80-852 0396, Fax: +91-80-852 0362 (E-mail: balakv@infy.com) (E-mail: mdpai@infy.com)
12. Reuters code - INFY.BO (BSE) Bridge code - IN;INF (BSE) Bloomberg code - INFO IN (BSE) - INFY.NS (NSE) - IN;INFN (NSE) - NINFO IN (NSE) - INFY.O (NASDAQ) - US;INFY (NASDAQ)
13. Stock market data relating to American Depositary Shares (ADSs) a. ADS listed at NASDAQ National Market in the United States b. Ratio of ADS to equity shares 2 ADS for one equity share c. ADS symbol INFY
d. The American Depositary Shares issued under the ADS program of the company were listed on the NASDAQ National Market in the United States on March 11, 1999. The monthly high and low quotations as well as the volume of ADSs traded at the NASDAQ National Market for the quarter ended September 30, 2001 are:
High Low Volume ------------------ ------------------ ------ $ Rs. $ Rs. Nos. - --- - --- ---- July, 2001 68.00 3,205 54.51 2,569 16,94,200 August 69.90 3,293 52.50 2,473 20,87,800 September 52.44 2,509 30.60 1,464 24,41,800 ----- ----- ----- ----- --------- Total 62,23,800 ----- ----- ----- ----- --------- % of volume traded to total float 148.84%*
---------- * 2 ADS = 1 equity share $ have been converted into Indian rupees at the monthly closing rates e. Investor correspondence in P. R. Ganapathy the US may be addressed to Investor Relations Officer Infosys Technologies Limited 34760, Campus Drive, Fremont CA 94555, USA. Tel.: +1-510-742-3030, Mobile: +1-510-872-4412, Fax: +1-510-742-2930, E-mail: guns@infy.com
51 Ratio analysis as per Indian GAAP
Quarter ended Half-year ended Year ended September 30, September 30, March 31, 2001 2000 2001 2000 2001 RATIOS - FINANCIAL PERFORMANCE Export revenue / total revenue (%) 98.18 98.92 97.78 98.84 98.60 Domestic revenue / total revenue (%) 1.82 1.08 2.22 1.16 1.40 Software development expenses / total revenue (%) 47.21 45.86 46.93 46.83 45.82 Gross profit / total revenue (%) 52.79 54.14 53.07 53.17 54.18 Selling and marketing expenses / total revenue (%) 5.15 5.05 4.84 5.06 4.84 General and Administration expenses / total revenue (%) 7.81 9.54 8.68 8.93 9.09 Selling, General & Administration expenses / total revenue (%) 12.96 14.59 13.52 13.99 13.93 Employee costs / total revenue (%) 42.76 37.57 42.62 38.70 37.77 Operating profit / total revenue (%) 39.83 39.55 39.55 39.18 40.24 Operating profit after depreciation & interest / total revenue (%) 33.82 34.11 33.65 33.94 34.30 Depreciation / total revenue (%) 6.00 5.43 5.90 5.24 5.94 Other income / total revenue (%) 2.25 4.39 2.23 4.33 3.12 Profit before tax / Total revenue (%) 36.08 38.50 35.88 38.27 36.62 Tax / total revenue (%) 5.08 3.98 4.87 3.92 3.83 Tax / PBT (%) 14.07 10.33 13.57 10.26 10.45 PAT from ordinary activities / total revenue (%) 31.00 34.52 31.01 34.34 32.80 PAT from ordinary activities / average net worth (%) (LTM) 52.15 48.82 52.15 48.82 56.08 ROCE (PBIT/average capital employed) (%) (LTM) 59.39 54.85 59.39 54.85 62.62 Return on invested capital (%) (LTM) 89.64 104.97 89.64 104.97 105.67 Capital output ratio (LTM) 1.67 1.47 1.67 1.47 1.71 Invested capital output ratio (LTM) 2.98 3.30 2.98 3.30 3.34 RATIOS - BALANCE SHEET Debt-equity ratio -- -- -- -- -- Debtors turnover (Days)* 50 55 50 55 58 Current ratio 3.25 3.50 3.25 3.50 3.49 Cash and equivalents / total assets (%) 41.02 48.98 41.02 48.98 41.57 Cash and equivalents / total revenue (%) (LTM) 30.27 41.05 30.27 41.05 30.40 Depreciation/ average gross block (%) (LTM) 23.76 23.60 23.76 23.60 24.67 Technology investment / total revenue (%) (LTM) 6.51 6.41 6.51 6.41 7.67 RATIOS - YEAR ON YEAR GROWTH Export revenue (%) 45 115 56 112 115 Total revenue (%) 46 114 58 112 115 Operating profit (%) 47 131 59 124 125 Net profit (from ordinary activities) (%) 31 134 42 118 118 EPS (from ordinary activities) growth (%) 31 134 42 118 118 PER - SHARE DATA (PERIOD END) Basic earnings per share from ordinary activities (Rs.) 30.47 23.28 59.19 41.62 94.23 Basic earnings per share (including extraordinary items) (Rs.) 30.47 23.28 59.19 42.45 95.06 Cash earnings per share from ordinary activities (Rs.) 36.36 26.95 70.45 47.96 111.29 Cash earnings per share (including extraordinary items) (Rs.) 36.36 26.95 70.45 48.79 112.12 Book value (Rs.) 263.37 165.38 263.37 165.38 210.05 Price / earning (LTM) 21.47 111.96 21.47 111.96 43.19 Price / cash earnings (LTM) 17.94 95.46 17.94 95.46 36.57 Price / book value 9.11 44.51 9.11 44.51 19.38 PE / EPS growth 0.70 0.83 0.51 0.95 0.37 Dividend per share (Rs.) NA NA 7.50 2.50 10.00
---------- * Annualized. LTM- Last twelve months 52 Infosys Technologies Limited United States UK Japan Bhubaneswar Mumbai Addison 11th Floor, Emerald House Kearny Place Akasaka, 2F Plot No. N-1/70, Nayapalli No. 85, Mittal Towers `C' 15305 Dallas Parkway, 15 Lansdowne Road 2-21-25, Akasaka, Adjoining Planetarium on 8th Floor, Nariman Point Suite 210, Croydon, CR0 2BX, Surrey Minato-Ku, NH5, Post RRL Mumbai-400 021 Addison, TX 75001 Tel: 44 20 8774 3300 Tokyo 107-0052 Bhubaneswar-751 013 Tel: (022) 2882911/ 14 Tel: (972) 770 0450 Fax: 44 20 8686 6631 Tel: 81 3 5545 3251 Tel: (0674) 584068-71 Fax: (022) 2846489 Fax: (972) 770 0490 Fax: 81 3 5545 3252 Fax: (0674) 583991 Argentina Mysore Bellevue Avda. Alicia Moreau Scandinavia Konark SJCE-STEP 10900 NE 4th Street, de Justo Stureplan 4C, 4tr Plot No. E/4 Sree Jayachamarajendra #2300, 1848 - Piso 1 Of. 36 114 35, Stockholm, Sweden Infocity, Chandaka College of Engineering, Bellevue, WA 98004 C1107AFN - Puerto Madero Tel: 46 8 463 1112 Bhubaneswar-751 024 Science and Technology Tel: (425) 990 1028 Capital Federal, Fax: 46 8 463 1114 Tel: (0674) 320001 Entrepreneurs Park Fax: (425) 990 1029 Buenos Aires Fax: (0674) 320100 Mysore-570 006 Mobile:54 11 4412 8010 Singapore Tel: (0821) 500001/06/08 Fremont 30, Raffles Place Chennai Fax: (0821) 511614 34760 Campus Drive Australia #23-00 Caltex House No. 138, Fremont, CA 94555 Level 7, 505 St. Singapore 048622 Old Mahabalipuram Road New Delhi Tel: (510) 742 3000 Kilda Road Tel: 65 233 6820 Sholinganallur K30, Green Park Main Fax: (510) 742 3090 Melbourne, Victoria 3004 Fax: 65 233 6905 Chennai-600 119 Behind Green Park Market Tel: 61 3 9868 1607 Tel: (044) 4500345 New Delhi-110 066 Marietta Fax: 61 3 9868 1652 Switzerland Tel: (011) 6514829-30 1950 Spectrum Circle, Dreikonigstrasse 31A Hyderabad Fax: (011) 6853366 #400 Level 4, 90 Mount Street 8002 Zurich Survey No 210, Marietta, GA 30067 North Sydney NSW 2060 Tel: 41 1 208 3905 Manikonda Village, Pune Tel: (770) 857 4428 Tel: 61 2 9954 0036 Fax: 41 1 208 3500 Rajendranagar Mandal, Plot No. 1 Fax: (770) 857 2258 Fax: 61 2 8904 1344 Lingampally, Infotech Park MIDC United Arab Emirates Rangareddy(Dist) Hinjewadi, Taluka Mulshi Lake Forest Belgium Y-45, P.O. Box 8230 Hyderabad - 500019 Pune-411027 25341 Commercentre Dreve Richelle 161, Sharjah Airport Tel: 040-3005222 Tel: (020) 2932800-803 Drive, Suite 150, Building N 1410 Waterloo, International Fax: 040-3005223 Fax: (020) 2932832 Lake Forest, CA 92630 Brussels Free Zone (Saif Zone), Tel: (949) 455 9161 Tel: 322 352 8743 Sharjah Kolkata Fax: (949) 609 0694 Fax: 322 352 8844 Tel: 971 6 5571 068 C/61, Bapuji Nagar Fax: 971 6 5571 056 Regent Estate P.O. Quincy Canada Kolkata-92 Two Adams Place, 5140 Yonge Street India Pager No.9628-304450 Quincy, MA 02169 Suite 1400 Bangalore Tel: (781) 356 3100 Toronto, Ontario M2N 6L7 Electronics City Mangalore Fax: (781) 356 3150 Tel: 416 224 7420 Hosur Road Kottara Cross Fax: 416 224 7474 Bangalore-561 229 Kuloor Ferry Road Troy Tel: (080) 8520261 Mangalore-575 006 100 Liberty Center, France Fax: (080) 8520362 Tel: (0824) 451485-88 #200, West Big 12 Avenue de l'Arche Fax: (0824) 451504 Beaver, Troy, MI 48084 Faubourg de l'Arche Reddy Building Tel: (248) 524 0320 92419 Courbevoie Cedex, K-310, 1st Main Mohali (Chandigarh) Fax: (248) 524 0321 Paris 5th Block, Koramangala B 100, Phase VIII Tel: 331 4691 8454 Bangalore-560 095 Industrial Area, SAS Nagar Phoenix Fax: 331 4691 8800 Tel: (080) 5530392 Mohali-160 059 10851 N Black Canyon Fax: (080) 5530391 Tel: (0172) 254191/ 92/ 94 Fwy, # 830, Germany Fax:(0172) 254193 Phoenix, AZ 85029 TOPAS 2, Pavithra Complex Tel: (602) 944 4855 Mergenthalerallee, #1, 27th Main, 2nd Cross Fax: (602) 944 4879 79-81, 65760 Eschborn 1st Stage, BTM Layout Frankfurt Bangalore-560 068 Lisle Tel: 49 6196 920 2115 Tel: (080) 6681755 2300 Cabot Drive, Fax: 49 6196 920 2320 Fax: (080) 6680181 Ste 250, Lisle, IL 60532 Hong Kong Infosys Towers Tel: (630) 482 5000 16F Cheung Kong Centre No. 27, Bannerghatta Road Fax: (630) 505 9144 2 Queen's Road Central 3rd Phase, J. P. Nagar Central, Hong Kong Bangalore-560 076 Berkeley Heights Tel: 852 2297 2231 Tel: (080) 6588668 Two Connell Drive, Fax: 852 2297 0066 Fax: (080) 6588676 Suite 4100, Berkeley Heights, NJ 07922 Tel: (908) 286 3100 Fax: (908) 286 3125
Bankers Visit Infosys at www.infy.com ICICI Bank Ltd. Bank of America Send e-mail to infosys@infy.com Company Secretary Call us at V. Balakrishnan within U.S. 1-800-ITL INFO Auditors Bharat S Raut and Co. outside the U.S. 91-80-8520261 Chartered Accountants Independent auditors (US GAAP) KPMG
(C) 2001 Infosys Technologies Limited, Bangalore, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this document. 53