EX-19.1 3 f78575orex19-1.txt EXHIBIT 19.1 INFOSYS TECHNOLOGIES LIMITED Report for the third quarter ended December 31, 2001 [INFOSYS LOGO] At a glance - Indian GAAP
----------------------------------------------------------------------------------------------------------- Rs. in crores, except per share data ----------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------- For the period Total revenue 660.81 537.07 1,923.46 1,338.69 1,900.57 Export revenue 648.35 529.24 1,882.93 1,321.56 1,874.03 Operating profit (PBIDT) 267.45 217.46 766.88 531.52 764.84 Profit after tax (PAT) from ordinary activities 206.04 166.33 597.63 441.64 623.32 PBIDT as a percentage of total revenue 40.47% 40.49% 39.87% 39.70% 40.24% PAT from ordinary activities as a percentage of total revenue 31.18% 30.97% 31.07% 32.99% 32.80% Earnings per share from ordinary activities(*) (par value of Rs. 5 each, fully paid) Basic 31.14 25.14 90.33 66.76 94.23 Diluted 31.02 24.86 89.86 65.97 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 53.05 125.16 284.56 325.01 463.35 At the end of the period Total Assets 1,949.93 1,261.09 1,389.64 Fixed assets - net 725.28 457.23 557.66 Cash and cash equivalents 866.35 517.75 577.74 Working capital 1,157.87 767.54 797.86 Total debt -- -- -- Net worth 1,949.93 1,261.09 1,389.64 Equity 33.08 33.08 33.08 Market capitalization 26,871.66 37,667.93 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 (in Rs. Crores) Year ended March 31, 2001 1,900.57 Quarter ended December 31, 2000 537.07 Quarter ended December 31, 2001 660.81
Exports (in Rs. Crores) Year ended March 31, 2001 1,874.03 Quarter ended December 31, 2000 529.24 Quarter ended December 31, 2001 648.35
Net Profit from Ordinary Activities (in Rs. Crores) Year ended March 31, 2001 623.32 Quarter ended December 31, 2000 166.33 Quarter ended December 31, 2001 206.04
2 Letter to the shareholders -------------------------------------------------------------------------------- Dear shareholders, We are delighted to report on yet another comfortable quarter despite challenging conditions. This quarter was one of the most challenging, both for Infosys and the Indian software industry. According to Indian GAAP, revenues grew by 23.0% over Q3 FY2001 while net profits from ordinary activities witnessed an increase of 23.9%. In fact, we achieved record free cash flows of Rs. 151.5 crore during this quarter. Gross addition in employees stood at 219 for the quarter, including 151 lateral hires - net employee addition for the quarter stood at 109. Software spending continued to weaken globally and the events of September 11 created a lot of uncertainty in the external environment. Short-term uncertainties continue to remain. Software revenues in US dollar terms grew by 0.2% for the quarter as compared to the previous quarter ended September 30, 2001. Revenue growth comprised volume growth of 3.4% offset by a price decline of 3.2%, as compared to the previous quarter. Thus, though we experienced growth in volumes, our quarterly revenue growth was impacted due to continuing pricing pressures. We expanded our customer base by adding more mainstream customers. Though the revenue ramp-up from new clients is slow, we believe that the new client addition would be an important asset for Infosys in the future. We added 33 new clients this quarter as compared to 28 in the previous quarter. Significant wins included SunAmerica Inc., a leading financial services company and part of the American International Group; Aizawa Koatsu Concrete KK, Japan's largest concrete manufacturer; Texas Instruments, the world leader in real-time technologies; Spatial Wireless, a US major that builds switching network elements for packet based wireless networks; Target Corporation, America's fourth largest general merchandise retailer; Cosmos Cooperative Bank, one of India's oldest banks; and ABN Amro - India, one of the leading foreign banks in India. Infosys increased its presence in the government sector with another engagement with the National Health Service (NHS), UK. In fact, Infosys is the only Indian company to figure in the UK government's single-window Services Catalogue (S-Cat). There will be significant changes in the senior management setup effective March 31, 2002. The Board of Directors appointed Nandan M. Nilekani as the Chief Executive Officer, President and Managing Director, and S. Gopalakrishnan as the Chief Operating Officer and Deputy Managing Director, effective March 31, 2002. N.R. Narayana Murthy continues to be the Chairman and his designation will be Chairman and Chief Mentor, effective March 31, 2002. Mr. Ramesh Vangal retired as a director of the company on October 24, 2001. We place on record our deep appreciation of the yeoman service rendered by Mr. Ramesh Vangal during his tenure on the Board. The Board of Directors co-opted Mr. Claude Smadja, Principal Advisor, World Economic Forum, as an Additional Director of the company with effect from October 25, 2001. Mr. Claude Smadja's appointment as director requires the approval of the members at the ensuing Annual General Meeting. As in the past, Infoscions continue to work hard and remain highly motivated. On your behalf, we thank our fellow Infoscions for contributing to yet another successful quarter through their unstinting commitment and dedication. Nandan M. Nilekani N.R. Narayana Murthy Bangalore Managing Director, President Chairman and January 10, 2002 and 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 December 31, 2001 and the Profit and Loss Accounts of the Company for the quarter and nine month periods 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 December 31, 2001; and (ii) in the case of the Profit and Loss Accounts, of the profits for the quarter and nine month periods ended on that date. for Bharat S Raut & Co. Chartered Accountants Bangalore S Balasubrahmanyam January 10, 2002 Partner 4 Balance sheet as at -------------------------------------------------------------------------------
in Rs. ------------------------------------------------------------------------------------------------------ December 31, 2001 December 31, 2000 March 31, 2001 ------------------------------------------------------------------------------------------------------ SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share capital 33,08,47,735 33,07,64,335 33,07,92,085 Reserves and surplus 1916,84,14,713 1228,01,09,686 1356,55,99,903 ------------------------------------------------------------------------------------------------------ 1949,92,62,448 1261,08,74,021 1389,63,91,988 ====================================================================================================== APPLICATION OF FUNDS FIXED ASSETS Original cost 849,44,50,085 504,18,02,852 631,14,44,025 Less: Depreciation 350,60,89,223 207,06,98,673 244,13,15,982 ------------------------------------------------------------------------------------------------------ Net book value 498,83,60,862 297,11,04,179 387,01,28,043 Add: Capital work-in-progress 226,44,82,864 160,11,55,758 170,65,04,250 ------------------------------------------------------------------------------------------------------ 725,28,43,726 457,22,59,937 557,66,32,293 INVESTMENTS 44,44,22,821 36,32,53,429 34,11,54,821 DEFERRED TAX ASSETS 22,33,00,000 -- -- CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors 310,53,09,864 303,96,24,611 302,37,02,417 Cash and bank balances 609,55,24,216 365,07,68,672 385,06,10,285 Loans and advances 634,58,66,530 355,39,12,507 430,27,93,623 ------------------------------------------------------------------------------------------------------ 1554,67,00,610 1024,43,05,790 1117,71,06,325 Less: Current liabilities 163,55,77,178 148,35,86,795 134,91,81,176 Provisions 233,24,27,531 108,53,58,340 184,93,20,275 ------------------------------------------------------------------------------------------------------ NET CURRENT ASSETS 1157,86,95,901 767,53,60,655 797,86,04,874 ------------------------------------------------------------------------------------------------------ 1949,92,62,448 1261,08,74,021 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 Marti G. Subrahmanyan Jitendra Vir Singh Partner Chairman and Managing Director, Director Director Director Chief Executive Officer President and Chief Operating Officer Omkar Goswami Larry Pressler Rama Bijapurkar Claude Smadja S. Gopalakrishnan Director Director Director Director Deputy Managing Director K. Dinesh S.D. Shibulal T.V. Mohandas Pai Phaneesh Murthy Srinath Batni Director Director Director and Director Director Chief Financial Officer V. Balakrishnan Bangalore Company Secretary and January 10, 2002 Vice President - Finance
5 Profit and loss account for the --------------------------------------------------------------------------------
in Rs. ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ---------------------------------------------------------------------------------------------------------------------------------- INCOME Software development services and products Overseas 648,35,15,437 529,24,01,389 1882,92,66,922 1321,55,65,725 1874,02,66,421 Domestic 12,45,42,488 7,82,82,900 40,53,05,387 17,13,76,490 26,53,92,386 ---------------------------------------------------------------------------------------------------------------------------------- 660,80,57,925 537,06,84,289 1923,45,72,309 1338,69,42,215 1900,56,58,807 SOFTWARE DEVELOPMENT EXPENSES 309,50,06,743 250,14,38,519 902,01,39,078 625,56,50,627 870,83,23,900 ---------------------------------------------------------------------------------------------------------------------------------- GROSS PROFIT 351,30,51,182 286,92,45,770 1021,44,33,231 713,12,91,588 1029,73,34,907 SELLING AND MARKETING EXPENSES 32,85,36,972 21,55,13,629 93,96,28,938 62,09,20,141 92,06,78,511 GENERAL AND ADMINISTRATION EXPENSES 51,00,42,542 47,91,63,936 160,60,31,362 119,52,17,799 172,82,35,210 ---------------------------------------------------------------------------------------------------------------------------------- 83,85,79,514 69,46,77,565 254,56,60,300 181,61,37,940 264,89,13,721 OPERATING PROFIT (PBIDT) 267,44,71,668 217,45,68,205 766,87,72,931 531,51,53,648 764,84,21,186 Interest -- -- -- -- -- Depreciation 41,33,27,825 33,01,92,680 115,82,69,242 74,99,31,944 112,89,45,152 ---------------------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT AFTER DEPRECIATION AND INTEREST 226,11,43,843 184,43,75,525 651,05,03,689 456,52,21,704 651,94,76,034 Other income 14,92,53,753 14,47,31,965 43,07,77,367 49,16,27,114 59,37,14,915 Provision for investment -- 13,08,00,000 -- 13,08,00,000 15,28,98,608 ---------------------------------------------------------------------------------------------------------------------------------- PROFIT BEFORE TAX AND EXTRAORDINARY ITEM 241,03,97,596 185,83,07,490 694,12,81,056 492,60,48,818 696,02,92,341 Provision for taxation 35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 72,71,00,000 ---------------------------------------------------------------------------------------------------------------------------------- PROFIT AFTER TAX BEFORE EXTRAORDINARY ITEM 206,03,97,596 166,33,07,490 597,62,81,056 441,64,48,818 623,31,92,341 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 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341 ---------------------------------------------------------------------------------------------------------------------------------- AMOUNT AVAILABLE FOR APPROPRIATION 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341 ---------------------------------------------------------------------------------------------------------------------------------- DIVIDEND Interim -- -- 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 8,69,94,211 Amount transferred - general reserve -- -- -- -- 553,95,77,834 Balance in Profit and Loss Account 206,03,97,596 166,33,07,490 542,94,62,729 426,96,31,148 -- ---------------------------------------------------------------------------------------------------------------------------------- 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341 ================================================================================================================================== EARNINGS PER SHARE (equity shares, par value Rs. 5 each) Basic 31.14 25.14 90.33 67.59 95.06 Diluted 31.02 24.86 89.86 66.79 94.76 Number of shares used in computing earnings per share Basic 6,61,64,388 6,61,51,724 6,61,61,389 6,61,51,377 6,61,52,131 Diluted 6,64,27,919 6,68,95,876 6,65,03,734 6,69,44,332 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 Marti G. Subrahmanyan Jitendra Vir Singh Partner Chairman and Managing Director, Director Director Director Chief Executive Officer President and Chief Operating Officer Omkar Goswami Larry Pressler Rama Bijapurkar Claude Smadja S. Gopalakrishnan Director Director Director Director Deputy Managing Director K. Dinesh S.D. Shibulal T.V. Mohandas Pai Phaneesh Murthy Srinath Batni Director Director Director and Director Director Chief Financial Officer V. Balakrishnan Bangalore Company Secretary and January 10, 2002 Vice President - Finance
6 Profit and loss account for the --------------------------------------------------------------------------------
in Rs. --------------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 --------------------------------------------------------------------------------------------------------------------------- SOFTWARE DEVELOPMENT EXPENSES Salaries and bonus including overseas staff expenses 252,82,99,726 170,68,74,953 719,81,36,772 427,83,37,885 605,50,65,446 Staff welfare 1,41,59,828 2,11,76,119 4,86,33,476 5,07,24,010 7,62,88,618 Contribution to provident and other funds 6,51,09,403 8,29,87,484 18,99,76,999 23,82,75,466 30,99,68,667 Foreign travel expenses 26,05,22,981 39,58,91,842 82,51,94,124 99,90,03,648 133,66,21,566 Consumables 1,15,55,687 2,11,69,196 2,23,05,800 4,06,76,271 5,86,87,245 Cost of software packages for own use 8,99,27,090 8,10,39,921 26,05,35,499 27,89,89,511 31,83,50,293 service delivery to clients 1,52,51,994 2,45,17,799 7,57,07,441 3,78,29,076 5,70,13,753 Provision for post-sales client support (4,02,052) 1,06,07,014 1,01,06,810 1,86,55,572 1,83,20,669 Computer maintenance 2,01,46,659 1,97,46,312 4,91,77,197 4,66,83,745 7,13,47,686 Communication expenses 7,87,44,937 11,02,30,345 28,60,56,536 20,94,22,226 31,47,34,348 Consultancy charges 1,16,90,490 2,71,97,534 5,43,08,424 5,70,53,217 9,19,25,609 --------------------------------------------------------------------------------------------------------------------------- 309,50,06,743 250,14,38,519 902,01,39,078 625,56,50,627 870,83,23,900 =========================================================================================================================== SELLING AND MARKETING EXPENSES Salaries and bonus including overseas staff expenses 14,65,40,566 10,65,60,519 45,16,64,388 31,63,24,458 44,24,50,822 Staff welfare 5,48,116 6,97,772 22,31,928 35,61,746 83,17,692 Contribution to provident and other funds 5,09,250 5,66,033 12,23,732 18,62,117 23,63,480 Foreign travel expenses 5,17,84,315 3,15,48,049 12,66,77,182 7,45,22,498 10,71,57,557 Consumables 23,592 -- 1,26,549 -- -- Cost of software packages for own use 2,10,904 92,859 9,63,306 1,28,095 2,31,458 Computer maintenance 5,219 2,56,956 17,126 4,30,811 5,94,392 Communication expenses 17,09,332 (87,211) 26,05,031 2,04,296 5,21,638 Traveling and conveyance 50,58,533 52,88,507 2,87,88,012 1,46,02,177 2,34,94,934 Rent 76,96,846 86,81,745 3,39,50,783 1,96,45,951 2,46,88,860 Telephone charges 83,90,111 50,45,821 2,35,92,648 1,32,68,834 2,34,14,698 Professional charges 1,98,21,529 17,58,184 4,09,27,527 1,36,06,831 4,78,37,412 Printing and stationery 43,48,515 24,90,297 1,17,63,538 42,39,176 95,70,534 Advertisements 9,93,407 1,57,531 13,21,911 45,38,131 72,82,105 Brand building 2,52,95,458 2,47,18,294 10,19,45,833 7,48,95,563 10,52,01,392 Office maintenance 7,51,575 13,51,520 20,37,160 54,67,665 77,28,128 Repairs to plant and machinery -- -- 1,09,365 17,41,984 17,41,984 Power and fuel 1,43,019 1,68,144 4,94,284 5,59,440 7,53,535 Insurance charges -- 77,87,617 -- 1,46,60,788 2,33,32,600 Rates and taxes 17,757 (7,64,193) 23,43,176 42,66,323 84,89,250 Bank charges and commission 34,448 2,95,130 1,86,776 3,78,077 5,15,576 Commission charges 4,11,71,575 33,82,901 6,12,55,217 1,24,08,622 1,79,03,784 Marketing expenses 1,19,11,154 98,00,148 3,84,01,106 3,26,51,683 4,26,87,545 Sales promotion expenses 15,29,172 48,36,888 36,94,182 54,48,790 70,16,656 Other miscellaneous expenses 42,579 8,80,118 33,08,178 15,06,085 73,82,479 --------------------------------------------------------------------------------------------------------------------------- 32,85,36,972 21,55,13,629 93,96,28,938 62,09,20,141 92,06,78,511 ===========================================================================================================================
7 Profit and loss account for the -------------------------------------------------------------------------------
in Rs. ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------------------------- GENERAL AND ADMINISTRATION EXPENSES Salaries and bonus including overseas staff expenses 11,39,83,238 7,29,07,688 34,20,64,878 19,18,62,199 26,11,29,018 Contribution to provident and other funds 79,81,605 46,51,373 2,46,73,379 1,74,18,902 2,22,44,161 Foreign travel expenses 99,46,042 1,28,17,160 3,50,31,506 2,78,84,384 2,84,32,532 Traveling and conveyance 4,08,51,386 4,50,45,108 11,53,19,126 11,27,70,902 16,05,69,888 Rent 5,34,37,142 3,61,59,328 14,75,06,043 9,47,32,159 14,47,93,848 Telephone charges 2,27,88,253 3,18,45,485 9,04,29,008 8,87,12,235 11,68,45,665 Professional charges 3,61,07,753 4,87,55,207 10,09,05,743 10,11,14,310 15,61,83,973 Printing and stationery 70,58,667 90,22,861 4,12,67,527 4,33,98,279 5,29,83,672 Advertisements 62,22,692 1,35,61,421 2,03,65,901 3,80,56,360 5,57,95,726 Office maintenance 3,68,48,576 2,79,61,217 10,26,14,363 8,05,66,826 12,07,04,514 Repairs to building 1,28,65,632 1,11,35,584 5,06,90,746 2,52,18,521 3,95,22,458 Repairs to plant and machinery 58,18,703 82,15,361 1,84,06,206 1,38,57,318 2,09,12,187 Power and fuel 4,68,37,943 3,33,45,119 14,04,39,140 7,87,79,829 11,70,91,723 Insurance charges 1,46,54,203 29,33,537 3,96,82,943 86,26,557 2,84,22,698 Rates and taxes 1,40,36,232 15,06,903 3,09,57,149 63,19,386 97,28,274 Donations 84,22,889 1,49,59,500 4,82,72,214 4,77,68,563 7,21,92,883 Auditor's remuneration audit fees 5,37,500 4,45,500 16,12,500 13,38,750 17,85,000 certification charges -- -- -- -- 2,00,000 out-of-pocket expenses 50,000 50,000 1,50,000 1,50,000 2,00,000 Bad loans and advances written off -- 11,891 -- 11,891 4,141 Bad debts written off -- -- -- 27,70,254 27,70,254 Provision for bad and doubtful debts 2,76,84,253 7,26,85,587 13,23,69,927 12,18,80,048 19,27,45,549 Provision for doubtful loans and advances -- -- 5,71,148 (1,412) 7,10,404 Bank charges and commission 4,24,953 30,30,814 16,05,124 38,72,210 54,23,907 Commission to non-whole time directors 24,00,000 15,00,000 72,00,000 45,00,000 59,22,049 Postage and courier 76,52,114 56,07,009 2,70,16,826 1,52,13,860 2,27,86,459 Books and periodicals 28,51,343 32,48,425 87,09,452 1,21,62,970 1,69,10,978 Research grants 25,00,000 25,00,000 75,00,000 75,00,000 1,00,00,000 Freight charges 17,22,183 21,33,762 38,37,545 43,63,988 55,72,484 Professional membership and seminar participation fees 68,26,016 61,63,223 1,58,56,018 1,52,15,381 2,17,10,613 Transaction processing fee and filing fees 1,72,72,533 29,68,134 4,01,64,910 59,32,979 1,52,76,339 Other miscellaneous expenses 22,60,691 39,96,739 1,08,12,040 2,32,20,150 1,86,63,813 ----------------------------------------------------------------------------------------------------------------------------------- 51,00,42,542 47,91,63,936 160,60,31,362 119,52,17,799 172,82,35,210 ================================================================================================================================== OTHER INCOME Interest received on deposits with banks and others 12,36,22,062 10,82,08,984 35,95,66,627 28,02,26,173 38,46,83,890 (Tax deducted at source Rs. 2,16,26,269; Rs. 1,43,43,030; Rs. 5,95,40,347; Rs. 2,54,72,210 and Rs. 4,30,12,428 respectively) Exchange differences 2,07,05,674 3,44,48,919 5,89,34,278 20,54,46,320 20,17,12,483 Miscellaneous income 49,26,017 20,74,062 1,22,76,462 59,54,621 73,18,542 ---------------------------------------------------------------------------------------------------------------------------------- 14,92,53,753 14,47,31,965 43,07,77,367 49,16,27,114 59,37,14,915 ================================================================================================================================== PROVISION FOR TAXATION Current year Income taxes 38,69,00,000 19,50,00000 103,30,00,000 49,56,00,000 71,31,00,000 Deferred taxes (3,69,00,000) -- (6,80,00,000) -- -- ---------------------------------------------------------------------------------------------------------------------------------- 35,00,00,000 19,50,00,000 96,50,00,000 49,56,00,000 71,31,00,000 Prior years -- -- -- 1,40,00,000 1,40,00,000 ---------------------------------------------------------------------------------------------------------------------------------- 35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 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, improved 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. The company does not have any investments in associates and accordingly the related accounting standard, mandatory effective April 1, 2002, does not affect these financial 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 nine months ended December 31, 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, earning 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 3,69,00,000 for the quarter and Rs 6,80,00,000 for the nine months ended December 31, 2001 are included in the provision for taxation for the respective periods. 1.2.2 Investments There were no investments during the quarter ended December 31, 2001. During the nine months ended December 31, 2001, the company invested Rs 10.33 crore in Workadia, Inc., USA ("Workadia") purchasing 22,00,000 fully paid Series "B" convertible preferred stock, par value of US$0.0002, at US$1.00 each. Workadia provides 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. 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. 9 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 Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------------- Charged during the period/year 5,18,17,535 11,81,34,465 12,41,67,610 21,85,52,260 34,99,43,502 ----------------------------------------------------------------------------------------------------------------------- Profit/loss on disposal of fixed assets ----------------------------------------------------------------------------------------------------------------------- Profit on sale of fixed assets 3,79,810 8,47,021 60,79,913 9,92,437 11,22,939 Loss on sale of fixed assets (4,66,055) (5,804) (59,63,396) (2,05,049) (2,05,049) ----------------------------------------------------------------------------------------------------------------------- Profit/(loss) on sale of fixed assets, net (86,245) 8,41,217 1,16,517 7,87,388 9,17,890 =======================================================================================================================
1.2.4 Capital commitments and contingent liabilities a. The company has outstanding guarantees and counter guarantees of Rs. 16,03,50,000 as at December 31, 2001, to various banks, in respect of the guarantees given by the banks in favor of various government authorities. The guarantees outstanding as at December 31, 2000 were Rs. 5,24,55,000 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 December 31, 2001. The claims as at December 31, 2000 amounted to Rs. 8,75,532, which was also the amount as at March 31, 2001. c. Outstanding forward contracts amounted to US$20,000,000 (approximately Rs 96,28,00,000 at nine months end exchange rates) at December 31, 2001. Such contracts as at December 31, 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. 65,36,61,038 as at December 31, 2001. The amount of such contracts as at December 31, 2000 was Rs. 122,65,64,426 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. ------------------------------------------------------------------------------------------------ Nine months ended Year ended December 31, March 31, 2001 2000 2001 ------------------------------------------------------------------------------------------------ Within one year of the balance sheet date 16,64,51,897 10,30,31,617 7,30,43,980 Due in a period between one year and five years 49,90,79,126 36,65,92,325 27,71,79,409 Due after five years 7,67,98,705 4,92,41,188 14,40,05,657 ------------------------------------------------------------------------------------------------ 74,23,29,728 51,88,65,130 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 by December 31, 2000. 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 December 31, 2001 options to acquire 3,11,000 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, 13,05,400 shares earlier issued are subject to lock-in. No options were issued under this plan during the period. 1998 Stock Option Plan ("the 1998 Plan") The 1998 Plan provides for the grant of stock options to employees. The 1998 Plan was approved by the board of directors in December 1997 and by the shareholders in January 1998. The Government of India approved 29,40,000 10 ADSs representing 14,70,000 equity shares for issue under the Plan. 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. A compensation committee comprising independent members of the board of directors administers the 1998 Plan.
--------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended Number of options granted, December 31, December 31, March 31, exercised and forfeited 2001 2000 2001 2000 2001 --------------------------------------------------------------------------------------------------------------------- Options granted, beginning of period/year 21,09,816 8,71,466 15,65,506 6,89,500 6,89,500 Granted during the period/year 2,28,150 80,800 8,30,850 3,12,800 9,64,840 Exercised during the period/year (17,000) (1,400) (22,200) (2,734) (12,434) Forfeited during the period/year (44,580) (6,200) (97,770) (54,900) (76,400) ---------------------------------------------------------------------------------------------------------------------- Options granted, end of period/year 22,76,386 9,44,666 22,76,386 9,44,666 15,65,506 ====================================================================================================================== Weighted average exercise price US$ 73.68 US$ 86.67 US$ 73.68 US$ 86.67 US$ 90.98 ---------------------------------------------------------------------------------------------------------------------- (Rs. 3,547) (Rs. 4,046) (Rs. 3,547) (Rs. 4,046) (Rs. 4,236) ======================================================================================================================
1999 Stock Option Plan ("the 1999 Plan") In fiscal 2000, the company instituted the 1999 Plan. The shareholders and the board of directors approved the plan in June 1999, which provides for the issue of 66,00,000 equity shares to the employees. The compensation committee administers the 1999 Plan. Options will be issued to employees at an exercise price that is not less than the fair market value. Fair market value is the closing price of the company's shares in the stock exchange, where there is the highest trading volume on a given date and if the shares are not traded on that day, the closing price on the next trading day. 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 Nine months ended Year ended Number of options granted, December 31, December 31, March 31, exercised and forfeited 2001 2000 2001 2000 2001 --------------------------------------------------------------------------------------------------------------------- Options granted, beginning of period/year 41,41,060 18,83,000 27,93,980 10,06,800 10,06,800 Granted during the period/year 5,26,780 1,78,200 19,79,600 11,32,300 19,57,830 Exercised during the period/year (30) (500) (30) (500) (1,200) Forfeited during the period/year (27,295) (48,700) (1,33,035) (1,26,600) (1,69,450) ---------------------------------------------------------------------------------------------------------------------- Options granted, end of period/year 46,40,515 20,12,000 46,40,515 20,12,000 27,93,980 ===================================================================================================================== Weighted average exercise price Rs. 4,511 Rs. 5,512 Rs. 4,511 Rs. 5,512 Rs. 5,572 ---------------------------------------------------------------------------------------------------------------------
The aggregate options outstanding and considered for dilution as at December 31, 2001 are 57,78,708 (as at December 31, 2000 - 24,84,333 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 December 31, As at December 31, As at March 31, 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------- Deposits with financial institutions: Housing Development Finance Corporation Limited 101,10,22,147 51,14,87,343 50,87,03,015 ICICI Limited 54,82,20,744 50,91,88,495 50,87,01,373 IDBI Limited - - 40,35,30,424 Deposits with body corporate: GE Capital Services India Limited 100,87,12,672 50,60,89,326 50,58,17,345 ----------------------------------------------------------------------------------------------------------------- 256,79,55,563 152,67,65,164 192,67,52,157 =================================================================================================================
The above amounts include interest accrued but not due amounting to Rs. 2,79,55,563 (the nine months ended December 31, 2000 - Rs. 2,67,65,164 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 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 Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ------------------------------------------------------------------------------------------------------- Net profit: - As reported 206,03,97,596 166,33,07,490 597,62,81,056 447,13,92,818 628,81,36,341 - Adjusted pro forma 200,11,18,251 160,39,26,704 579,86,31,160 429,74,13,557 605,55,42,584 -------------------------------------------------------------------------------------------------------
1.2.9 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 Nine months ended Year ended December 31, December 31, December 31, December 31, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------------------------- Salaries and bonus including overseas staff expenses 280,35,31,474 190,82,17,051 804,27,31,442 484,08,10,298 684,32,51,596 Contribution to provident and other funds 7,36,00,258 8,82,04,890 21,58,74,110 25,75,56,485 33,45,76,308 Foreign travel expenses 32,22,53,338 44,02,57,051 98,69,02,812 110,14,10,530 147,22,11,655 Consumables 1,15,79,279 2,11,69,196 2,24,32,349 4,06,76,271 5,86,87,245 Cost of software packages for own use 9,01,37,994 8,11,32,780 26,14,98,805 27,91,17,606 31,85,81,751 Cost of software packages for service delivery to clients 1,52,51,994 2,45,17,799 7,57,07,441 3,78,29,076 5,70,13,753 Computer maintenance 2,01,51,878 2,00,03,268 4,91,94,323 4,71,14,556 7,19,42,078 Communication expenses 8,04,54,269 11,01,43,134 28,86,61,567 20,96,26,522 31,52,55,986 Consultancy charges 1,16,90,490 2,71,97,534 5,43,08,424 5,70,53,217 9,19,25,609 Provision for post-sales client support (4,02,052) 1,06,07,014 1,01,06,810 1,86,55,572 1,83,20,669 Traveling and conveyance 4,59,09,919 5,03,33,615 14,41,07,138 12,73,73,079 18,40,64,822 Rent 6,11,33,988 4,48,41,073 18,14,56,826 11,43,78,110 16,94,82,708 Telephone charges 3,11,78,364 3,68,91,306 11,40,21,656 10,19,81,069 14,02,60,363 Professional charges 5,59,29,282 5,05,13,391 14,18,33,270 11,47,21,141 20,40,21,385 Printing and stationery 1,14,07,182 1,15,13,158 5,30,31,065 4,76,37,455 6,25,54,206 Advertisements 72,16,099 1,37,18,952 2,16,87,812 4,25,94,491 6,30,77,831 Office maintenance 3,76,00,151 2,93,12,737 10,46,51,523 8,60,34,491 12,84,32,642 Repairs to building 1,28,65,632 1,11,35,584 5,06,90,746 2,52,18,521 3,95,22,458 Repairs to plant and machinery 58,18,703 82,15,361 1,85,15,571 1,55,99,302 2,26,54,171 Power and fuel 4,69,80,962 3,35,13,263 14,09,33,424 7,93,39,269 11,78,45,258 Brand building 2,52,95,458 2,47,18,294 10,19,45,833 7,48,95,563 10,52,01,392 Insurance charges 1,46,54,203 1,07,21,154 3,96,82,943 2,32,87,345 5,17,55,298 Rates and taxes 1,40,53,989 7,42,710 3,33,00,325 1,05,85,709 1,82,17,524 Commission charges 4,11,71,575 33,82,901 6,12,55,217 1,24,08,622 1,79,03,784 Donations 84,22,889 1,49,59,500 4,82,72,214 4,77,68,563 7,21,92,883 Auditor's remuneration - audit fees 5,37,500 4,45,500 16,12,500 13,38,750 17,85,000 - certification charges -- -- -- -- 2,00,000 - out-of-pocket expenses 50,000 50,000 1,50,000 1,50,000 2,00,000 Bad loans and advances written off -- 11,891 -- 11,891 4,141 Bad debts written off -- -- -- 27,70,254 27,70,254 Provision for bad and doubtful debts 2,76,84,253 7,26,85,587 13,23,69,927 12,18,80,048 19,27,45,549 Provision for doubtful loans and advances -- -- 5,71,148 (1,412) 7,10,404 Bank charges and commission 4,59,401 33,25,944 17,91,900 42,50,287 59,39,483 Commission to non-whole time directors 24,00,000 15,00,000 72,00,000 45,00,000 59,22,049 Postage and courier 76,52,114 56,07,009 2,70,16,826 1,52,13,860 2,27,86,459 Books and periodicals 28,51,343 32,48,425 87,09,452 1,21,62,970 1,69,10,978 Research grants 25,00,000 25,00,000 75,00,000 75,00,000 1,00,00,000 Freight charges 17,22,183 21,33,762 38,37,545 43,63,988 55,72,484 Professional membership and seminar participation fees 68,26,016 61,63,223 1,58,56,018 1,52,15,381 2,17,10,613 Marketing expenses 1,19,11,154 98,00,148 3,84,01,106 3,26,51,683 4,26,87,545 Sales promotion expenses 15,29,172 48,36,888 36,94,182 54,48,790 70,16,656 Transaction processing fee and filing fees 1,72,72,533 29,68,134 4,01,64,910 59,32,979 1,52,76,339 Other miscellaneous expenses 23,03,270 48,76,857 1,41,20,218 2,47,26,235 2,60,46,292 ----------------------------------------------------------------------------------------------------------------------------------- 393,35,86,257 319,61,16,084 1156,57,99,378 807,17,88,567 1135,72,37,621 ===================================================================================================================================
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 segmental 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 practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
in Rs. ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, 2001 Financial services Manufacturing Telecom Retail Others Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 226,20,45,266 104,75,85,215 100,06,69,011 89,83,62,668 139,93,95,765 660,80,57,925 Identifiable operating expenses 88,69,28,977 45,15,97,293 25,80,69,122 24,41,14,216 44,57,63,049 228,64,72,657 Allocated expenses 57,38,64,655 25,87,01,439 24,71,15,470 22,18,50,892 34,55,81,144 164,71,13,600 ------------------------------------------------------------------------------------------- Segmental operating income 80,12,51,634 33,72,86,483 49,54,84,419 43,23,97,560 60,80,51,572 267,44,71,668 Unallocable expenses 41,33,27,825 Operating income 226,11,43,843 Other income (expense), net 14,92,53,753 Net profit before taxes 241,03,97,596 Income taxes 35,00,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 206,03,97,596 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, 2000 Financial services Manufacturing Telecom Retail Others Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 196,56,70,450 89,69,04,276 95,06,11,119 46,72,49,533 109,02,48,911 537,06,84,289 Identifiable operating expenses 64,95,80,074 36,28,28,425 25,92,61,153 14,73,49,507 33,05,83,802 174,96,02,961 Allocated expenses 54,49,68,088 23,74,73,219 25,16,93,172 12,37,13,593 28,86,65,051 144,65,13,123 ------------------------------------------------------------------------------------------- Segmental operating income 77,11,22,288 29,66,02,632 43,96,56,794 19,61,86,433 47,10,00,058 217,45,68,205 Unallocable expenses 46,09,92,680 Operating income 171,35,75,525 Other income (expense), net 14,47,31,965 Net profit before taxes 185,83,07,490 Income taxes 19,50,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 166,33,07,490 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended December 31, 2001 Financial services Manufacturing Telecom Retail Others Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 700,22,62,077 328,99,65,733 301,73,41,639 232,63,11,817 359,86,91,043 1923,45,72,309 Identifiable operating expenses 256,72,86,450 136,78,29,242 78,74,06,362 63,19,60,880 125,02,33,939 660,47,16,873 Allocated expenses 185,48,11,037 83,72,77,894 76,77,10,017 58,95,32,406 91,17,51,151 496,10,82,505 ------------------------------------------------------------------------------------------- Segmental operating income 258,01,64,590 108,48,58,597 146,22,25,260 110,48,18,531 143,67,05,953 766,87,72,931 Unallocable expenses 115,82,69,242 Operating income 651,05,03,689 Other income (expense), net 43,07,77,367 Net profit before taxes 694,12,81,056 Income taxes 96,50,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 597,62,81,056 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended December 31, 2000 Financial services Manufacturing Telecom Retail Others Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 452,31,93,381 238,50,76,617 247,37,67,456 110,39,54,549 290,09,50,212 1338,69,42,215 Identifiable operating expenses 160,79,27,274 90,20,80,564 65,71,32,600 40,33,12,389 90,66,43,854 447,70,96,681 Allocated expenses 124,20,47,410 63,23,82,782 65,78,67,058 29,21,57,823 77,02,36,813 359,46,91,886 ------------------------------------------------------------------------------------------- Segmental operating income 167,32,18,697 85,06,13,271 115,87,67,798 40,84,84,337 122,40,69,545 531,51,53,648 Unallocable expenses 88,07,31,944 Operating income 443,44,21,704 Other income (expense), net 49,16,27,114 Net profit before taxes 492,60,48,818 Income taxes 50,96,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 441,64,48,818 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- 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 December 31, 2001 North America Europe India Rest of the World Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 468,49,88,158 128,38,66,686 12,45,42,488 51,46,60,593 660,80,57,925 Identifiable operating expenses 164,19,13,038 45,18,85,229 468,64,905 14,58,09,485 228,64,72,657 Allocated expenses 117,41,03,279 32,17,49,391 270,93,923 12,41,67,007 164,71,13,600 ------------------------------------------------------------------------------------------- Segmental operating income 186,89,71,841 51,02,32,066 5,05,83,660 24,46,84,101 267,44,71,668 Unallocable expenses 41,33,27,825 Operating income 226,11,43,843 Other income (expense), net 14,92,53,753 Net profit before taxes 241,03,97,596 Income taxes 35,00,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 206,03,97,596 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, 2000 North America Europe India Rest of the World Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 395,34,56,605 101,08,71,777 7,82,82,900 32,80,73,007 537,06,84,289 Identifiable operating expenses 125,52,72,510 36,33,39,515 1,76,06,878 11,33,84,058 174,96,02,961 Allocated expenses 105,38,56,826 26,94,63,973 3,01,19,876 9,30,72,448 144,65,13,124 ------------------------------------------------------------------------------------------- Segmental operating income 164,43,27,269 37,80,68,289 3,05,56,146 12,16,16,501 217,45,68,205 Unallocable expenses 46,09,92,680 Operating income 171,35,75,525 Other income (expense), net 14,47,31,965 Net profit before taxes 185,83,07,490 Income taxes 19,50,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 166,33,07,490 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended December 31, 2001 North America Europe India Rest of the World Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 1373,09,71,866 372,67,15,240 40,53,05,386 137,15,79,817 1923,45,72,309 Identifiable operating expenses 467,32,28,283 134,32,83,275 14,45,63,101 44,36,42,214 660,47,16,873 Allocated expenses 353,31,48,305 95,92,38,451 12,23,57,859 34,63,37,890 496,10,82,505 ------------------------------------------------------------------------------------------- Segmental operating income 552,45,95,278 142,41,93,514 13,83,84,426 58,15,99,713 766,87,72,931 Unallocable expenses 115,82,69,242 Operating income 651,05,03,689 Other income (expense), net 43,07,77,367 Net profit before taxes 694,12,81,056 Income taxes 96,50,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 597,62,81,056 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended December 31, 2000 North America Europe India Rest of the World Total ----------------------------------------------------------------------------------------------------------------------------------- Revenues 994,53,71,891 243,02,61,946 17,13,76,490 83,99,31,888 1338,69,42,215 Identifiable operating expenses 325,39,17,167 88,07,14,953 5,33,72,696 28,90,91,865 447,70,96,681 Allocated expenses 266,16,27,224 65,08,51,462 5,43,48,093 22,78,65,107 359,46,91,886 ------------------------------------------------------------------------------------------- Segmental operating income 402,98,27,500 89,86,95,531 6,36,55,701 32,29,74,916 531,51,53,648 Unallocable expenses 88,07,31,944 Operating income 443,44,21,704 Other income (expense), net 49,16,27,114 Net profit before taxes 492,60,48,818 Income taxes 50,96,00,000 ----------------------------------------------------------------------------------------------------------------------------------- Net profit after taxes 441,64,48,818 =================================================================================================================================== ----------------------------------------------------------------------------------------------------------------------------------- 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 nine months ended December 31, 2001 with Yantra Corporation, USA, the subsidiary of the company, and key management personnel. The transactions with Yantra Corporation comprise sales of Rs. 4,15,10,478 during the nine months ended December 31, 2001 (the nine months ended December 31, 2000 -- Rs. 15,76,72,000 and the year ended March 31, 2001 - Rs. 19,64,85,967). The outstanding dues from the subsidiary as at December 31, 2001 are Rs. 41,68,924 (as at December 31, 2000 - Rs. 1,87,57,679 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 December 31, 2001 are Rs. 2,24,31,923 (as at December 31, 2000 - Rs. 71,07,809 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 Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ------------------------------------------------------------------------------------------------------- Number of shares considered as basic weighted average shares outstanding 6,61,64,388 6,61,51,724 6,61,61,389 6,61,51,377 6,61,52,131 Add: Effect of dilutive issues of shares/stock options 2,63,531 7,44,152 3,42,345 7,92,955 2,06,180 ------------------------------------------------------------------------------------------------------- Number of shares considered as weighted average shares and potential shares outstanding 6,64,27,919 6,68,95,876 6,65,03,734 6,69,44,332 6,63,58,311 -------------------------------------------------------------------------------------------------------
15 Statement of cash flows -------------------------------------------------------------------------------
in Rs. ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from operating activities Profit before tax 241,03,97,596 185,83,07,490 694,12,81,056 492,60,48,818 696,02,92,341 Adjustments to reconcile profit before tax to cash provided By operating activities (Profit)/Loss on sale of fixed assets 86,245 (8,41,217) (1,16,517) (7,87,388) (9,17,890) Depreciation and amortization 41,33,27,825 33,01,92,680 115,82,69,242 74,99,31,944 112,89,45,152 Interest income (12,36,22,062) (10,82,08,984) (35,95,66,627) (27,26,13,143) (38,46,83,890) Effect of Deferred Taxes (3,69,00,000) -- (6,80,00,000) -- -- Provisions on long-term investments -- 13,08,00,000 -- 13,08,00,000 15,28,98,608 Income taxes paid during the period/year (25,29,84,506) (31,31,33,686) (104,13,89,285) (63,56,65,477) (85,18,05,440) Exchange differences on translation of foreign currency deposits (86,92,344) (3,44,48,919) (4,69,20,948) (20,54,46,320) (20,17,12,483) Changes in current assets and liabilities Sundry debtors 33,06,55,341 (60,90,55,865) (8,16,07,447) (167,78,43,358) (166,19,21,164) Loans and advances (12,46,99,173) (8,27,15,875) (30,56,82,932) (21,45,10,572) (34,72,64,731) Current liabilities and provisions (16,23,41,792) ( 1,40,20,268) 29,65,02,811 74,39,94,931 60,92,54,409 ---------------------------------------------------------------------------------------------------------------------------------- Net cash generated by operating activities 244,52,27,130 115,68,75,356 649,27,69,353 354,39,09,435 540,30,84,912 ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from financing activities Proceeds on exercise of stock options 1,39,68,418 72,13,119 1,81,07,731 82,14,625 2,37,85,906 Dividends paid during the period/year, including Dividend Tax (54,68,18,327) (20,17,61,670) (109,36,15,164) (42,20,05,883) (42,20,05,883) ---------------------------------------------------------------------------------------------------------------------------------- Net cash used in financing activities (53,28,49,909) (19,45,48,551) (107,55,07,433) (41,37,91,258) (39,82,19,977) ---------------------------------------------------------------------------------------------------------------------------------- Cashflows from investing activities Purchases of fixed assets and change in capital work-in-progress (53,05,32,761) (125,15,71,385) (284,55,90,479) (325,00,86,025) (463,35,45,172) Proceeds on disposal of fixed assets 9,02,894 18,31,825 1,12,26,321 20,69,586 22,73,671 Long-term investments in securities -- (3,67,46,692) (10,32,68,000) (26,63,64,960) (26,63,64,960) Interest income 12,36,22,062 10,82,08,984 35,95,66,627 27,26,13,143 38,46,83,890 ---------------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (40,60,07,805) (117,82,77,268) (257,80,65,531) (324,17,68,256) (451,29,52,571) ---------------------------------------------------------------------------------------------------------------------------------- Effect of exchange differences on translation of foreign currency deposits 86,92,344 3,44,48,919 4,69,20,948 20,54,46,320 20,17,12,483 ---------------------------------------------------------------------------------------------------------------------------------- Net (decrease)/increase in cash and cash equivalents during the period/year 151,50,61,760 (18,15,01,544) 288,61,17,337 9,37,96,241 69,36,24,847 Cash and cash equivalents at the beginning of the period/year 714,84,18,019 535,90,35,380 577,73,62,442 508,37,37,595 508,37,37,595 ---------------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at the end of the period/year 866,34,79,779 517,75,33,836 866,34,79,779 517,75,33,836 577,73,62,442 ===================================================================================================================================
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 nine month periods ended December 31, 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 January 10, 2002 Partner 16 Statement of cash flows
in Rs. ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 ----------------------------------------------------------------------------------------------------------------------------------- Income taxes paid during the period/year Charge as per the Profit and Loss Account 35,00,00,000 19,50,00,000 96,50,00,000 50,96,00,000 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 29,21,41,086 17,50,80,939 109,61,86,569 47,71,61,475 69,33,01,439 Less: Increase/(Decrease) in income tax provision (38,91,56,580) (5,69,47,253) (101,97,97,284) (38,54,91,998) (60,29,91,999) ----------------------------------------------------------------------------------------------------------------------------------- 25,29,84,506 31,31,33,686 104,13,89,285 63,56,65,477 85,18,05,440 =================================================================================================================================== Change in loans and advances during the period/year As per the Balance Sheet 634,58,66,530 355,39,12,507 634,58,66,530 355,39,12,507 430,27,93,623 Less: Deposits with financial institutions and body corporate, included in cash and cash equivalents (256,79,55,563) (152,67,65,164) (256,79,55,563) (152,67,65,164) (192,67,52,157) Advance income taxes separately considered (233,35,84,361) (102,12,57,828) (233,35,84,361) (102,12,57,828) (123,73,97,792) ------------------------------------------------------------------------------------ 144,43,26,606 100,58,89,515 144,43,26,606 100,58,89,515 113,86,43,674 Less: Opening balance considered (131,96,27,433) (92,31,73,640) (113,86,43,674) (79,13,78,943) (79,13,78,943) ----------------------------------------------------------------------------------------------------------------------------------- 12,46,99,173 8,27,15,875 30,56,82,932 21,45,10,572 34,72,64,731 =================================================================================================================================== Change in current liabilities and provisions during the period/year As per the Balance Sheet 396,80,04,709 256,89,45,135 396,80,04,709 256,89,45,135 319,85,01,451 Add/Less: Provisions separately considered in the cash flow Statement: Income taxes (224,88,09,025) (101,15,11,740) (224,88,09,025) (101,15,11,740) (122,90,11,741) Dividends -- -- -- -- (49,61,85,878) Dividend tax -- -- -- -- (5,06,10,959) ------------------------------------------------------------------------------------ 171,91,95,684 155,74,33,395 171,91,95,684 155,74,33,395 142,26,92,873 Less: Opening balance considered (188,15,37,476) (157,14,53,663) (142,26,92,873) (81,34,38,464) (81,34,38,464) ----------------------------------------------------------------------------------------------------------------------------------- (16,23,41,792) (1,40,20,268) 29,65,02,811 74,39,94,931 60,92,54,409 =================================================================================================================================== Purchases of fixed assets and change in capital work-in-progress As per the Balance Sheet 62,80,70,336 69,62,40,707 228,76,11,865 221,85,33,772 349,66,44,427 Less: Opening Capital work-in-progress (236,20,20,439) (104,58,25,080) (170,65,04,250) (56,96,03,505) (56,96,03,505) Add: Closing Capital work-in-progress 226,44,82,864 160,11,55,758 226,44,82,864 160,11,55,758 170,65,04,250 ----------------------------------------------------------------------------------------------------------------------------------- 53,05,32,761 125,15,71,385 284,55,90,479 325,00,86,025 463,35,45,172 =================================================================================================================================== Long-term investments in securities during the period/year As per the Balance Sheet 44,44,22,821 36,32,53,429 44,44,22,821 36,32,53,429 34,11,54,821 Add: Provisions on investments -- 13,08,00,000 -- 13,08,00,000 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 40,47,13,429 44,44,22,821 40,47,13,429 40,47,13,429 Less: Opening balance considered (44,44,22,821) (36,79,66,737) (34,11,54,821) (13,83,48,469) (13,83,48,469) ----------------------------------------------------------------------------------------------------------------------------------- -- 3,67,46,692 10,32,68,000 26,63,64,960 26,63,64,960 =================================================================================================================================== Cash and cash equivalents at the end of the period/year As per the Balance Sheet 609,55,24,216 365,07,68,672 609,55,24,216 365,07,68,672 385,06,10,285 Add: Deposits with financial institutions and body corporate, included herein 256,79,55,563 152,67,65,164 256,79,55,563 152,67,65,164 192,67,52,157 ----------------------------------------------------------------------------------------------------------------------------------- 866,34,79,779 517,75,33,836 866,34,79,779 517,75,33,836 577,73,62,442 ===================================================================================================================================
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. The balance of cash and cash equivalents includes Rs 173,05,518 as at December 31, 2001 (as at December 31, 2000 - Rs. 70,05,983 and as at March 31, 2001 - Rs. 48,15,163) set aside for payment of dividends and accordingly is not otherwise available to the company. 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 being non-cash has not been considered in the statement of cash flows, except for the related income taxes. The previous year's/periods' figures have been recast/ restated, wherever necessary, to conform to the current periods' classifications. 17 At a glance - US GAAP -------------------------------------------------------------------------------
US $ in millions, except as otherwise stated -------------------------------------------------------------------------------------------- Quarter ended Nine months ended Year ended December 31, December 31, March 31, 2001 2000 2001 2000 2001 -------------------------------------------------------------------------------------------- For the period Revenues 137.58 114.91 405.37 293.11 413.85 Operating income 45.83 38.19 133.43 96.79 137.51 Net income 41.65 34.01 122.18 93.62 131.95 Operating income as a percentage of total revenues 33.31% 33.24% 32.92% 33.02% 33.23% Net income as a percentage of total revenues 30.27% 29.59% 30.14% 31.94% 31.88% Basic earnings per share ($) 0.64 0.52 1.86 1.43 2.01 Cash dividend per equity share ($) NA NA 0.16 0.05 0.14 Capital investments 14.60 30.26 59.98 71.40 101.24 At the end of the period Total assets 439.42 304.50 342.35 Property, plant and equipment - net 150.66 97.93 119.77 Cash and cash equivalents 179.96 110.89 124.08 Working capital 229.70 156.94 176.18 Total debt -- -- -- Stockholders' equity 403.71 271.14 311.79 Common stock 8.60 8.59 8.59 Market capitalization 5,581.98 8,067.67 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) Year ended March 31, 2001 413.85 Quarter ended December 31, 2000 114.91 Quarter ended December 31, 2001 137.58
Operating Income (US $ in millions) Year ended March 31, 2001 137.51 Quarter ended December 31, 2000 38.19 Quarter ended December 31, 2001 45.83
Net Income (US $ in millions) Year ended March 31, 2001 131.95 Quarter ended December 31, 2000 34.01 Quarter ended December 31, 2001 41.65
18 FORM 6K (From Page no. 19-48) 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 in the United States 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 December 31, 2001 are:
BSE NSE BgSE --------------------------- ----------------------------- ---------------------- High Low Volume High Low Volume High Low Volume Rs. Rs. Nos. Rs. Rs. Nos. Rs. Rs. Nos. ----- ----- ----------- ----- ----- ----------- ---- ---- ------ October, 2001 3,100 2,156 95,35,320 3,098 2,158 1,51,74,621 -- -- -- November 4,109 2,802 71,27,238 4,190 2,802 1,31,19,365 -- -- -- December 4,685 3,762 72,01,508 4,675 3,732 1,26,97,481 -- -- -- ----- ----- ----------- ----- ----- ----------- ---- ---- ------ Total 2,38,64,066 4,09,91,467 % of volume traded to average shares outstanding 37.20%(*) 63.98%(*) --(*) ----------- ----------- ------
(*) The number of shares outstanding is 6,40,70,030. 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, Opp. National College, change of address etc., in India Basavanagudi, Bangalore - 560 004, India. may be addressed to 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 December 31, 2001 was 2,700 (quarter ended December 31, 2000 - 1,500). 100.00% of transfers (quarter ended December 31, 2000 - 100.00%) were completed within 10 days. 7. Investors' services - complaints received during
Quarter ended December 31, -------------------------------------------------- 2001 2000 ------------------------ ---------------------- Nature of complaints Received Attended to Received Attended to -------------------- -------- ----------- -------- ----------- 1. Non-receipt of share certificates 2 2 -- -- 2. Non-receipt of bonus shares/split shares -- -- 1 1 3. Letters from Stock Exchanges, SEBI, etc. -- -- -- -- 4. Non-receipt of dividend 62 62 21 21 --- --- --- --- 64 64 22 22 --- --- --- ---
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 December 31, 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. 49 9. Categories of shareholders as on December 31
2001 2000 ----------------------------------------- ----------------------------------------- No. of No. of No. of Voting shares No. of Voting shares Category shareholders strength(%) held shareholders strength(%) held -------- ------------ ----------- ----------- ------------ ----------- ----------- Individuals 81,805 17.46 1,15,50,817 72,100 24.02 1,58,90,841 Companies 2,938 1.02 6,74,037 3,139 2.24 14,80,588 FIIs 370 37.99 2,51,39,687 363 25.45 1,68,33,123 OCBs and NRIs 732 0.67 4,42,285 594 0.73 4,85,473 Founders and their families 23 28.83 1,90,76,960 23 29.23 1,93,32,960 Mutual Funds, Banks, FIs 193 9.59 63,45,407 209 12.68 83,92,143 ITL Employee Welfare Trust 3 1.27 8,40,837 3 1.15 7,58,000 Shares in transit in NSDL -- -- -- 1 1.35 8,95,672 Equity shares underlying 1 3.17 20,99,217 1 3.15 20,83,267 American Depositary Shares* --------------------------------------------------------------------------------------------------------------------- Total 86,065 100.00 6,61,69,247 76,439 100.00 6,61,52,567 ---------------------------------------------------------------------------------------------------------------------
---------- * Held by beneficial owners outside India. 10. Financial calendar (tentative and subject to change) 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 December 31, 2001 are:
High Low Volume ------------- ------------- --------- $ Rs. $ Rs. Nos. ----- ----- ----- ----- --------- October, 2001 55.00 2,637 31.69 1,519 37,18,500 November 66.50 3,190 47.00 2,254 26,97,200 December 70.11 3,375 55.66 1,679 20,69,200 -------------------------------------------------------------------------------- Total 84,84,900 -------------------------------------------------------------------------------- 202.09%*
% of volume traded to total float * 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 50 Ratio analysis as per Indian GAAP
Quarter ended Nine months ended December 31, December 31, Year ended ---------------- ----------------- March 31, 2001 2000 2001 2000 2001 ------ ------ ------ ------ ---------- Ratios-Financial performance Export revenue / total revenue(%) 98.12 98.54 97.89 98.72 98.60 Domestic revenue / total revenue(%) 1.88 1.46 2.11 1.28 1.40 Software development expenses / total revenue(%) 46.84 46.58 46.90 46.73 45.82 Gross profit / total revenue(%) 53.16 53.42 53.10 53.27 54.18 Selling and marketing expenses / total revenue(%) 4.97 4.01 4.89 4.64 4.84 General and administration expenses / total revenue(%) 7.72 8.92 8.35 8.93 9.09 Selling, general & administration expenses / total revenue(%) 12.69 12.93 13.23 13.57 13.93 Employee costs / total revenue(%) 43.54 37.17 42.94 38.08 37.77 Operating profit / total revenue(%) 40.47 40.49 39.87 39.70 40.24 Operating profit after depreciation and interest / total revenue(%) 34.22 34.34 33.85 34.10 34.30 Depreciation / total revenue(%) 6.25 6.15 6.02 5.60 5.94 Other income / total revenue(%) 2.26 2.69 2.24 3.67 3.12 Profit before tax / total revenue(%) 36.48 34.60 36.09 36.80 36.62 Tax / total revenue(%) 5.30 3.63 5.02 3.81 3.83 Tax / PBT(%) 14.52 10.49 13.90 10.35 10.45 PAT from ordinary activities / total revenue(%) 31.18 30.97 31.07 32.99 32.80 PAT from ordinary activities / average net worth(%)(LTM) 48.54 52.17 48.54 52.17 56.08 ROCE (PBIT/Average capital employed)(%)(LTM) 55.90 58.39 55.90 58.39 62.62 Return on invested capital(%)(LTM) 82.14 97.22 82.14 97.22 105.67 Capital output ratio(LTM) 1.55 1.60 1.55 1.60 1.71 Invested capital output ratio(LTM) 2.72 3.11 2.72 3.11 3.34 Ratios - Balance sheet Debt-equity ratio -- -- -- -- -- Debtors turnover (Days)(*) 44 62 44 62 58 Current ratio 3.92 3.99 3.92 3.99 3.49 Cash and equivalents / total assets(%) 44.43 41.06 44.43 41.06 41.57 Cash and equivalents / total revenue(%)(LTM) 34.86 32.04 34.86 32.04 30.40 Depreciation/ average gross block(%)(LTM) 22.71 25.42 22.71 25.42 24.67 Technology investment / total revenue(%)(LTM) 5.47 6.45 5.47 6.45 7.67 Ratios - Year on Year Growth Export revenue(%) 23 136 42 121 115 Total revenue(%) 23 137 44 121 115 Operating profit(%) 23 122 44 116 125 Net profit (from ordinary activities)(%) 24 125 35 121 118 EPS (from ordinary activities) growth(%) 24 125 35 121 118 Per - share data (Period End) Basic earnings per share from ordinary activities(Rs.) 31.14 25.14 90.33 66.76 94.23 Basic earnings per share (including extraordinary items)(Rs.) 31.14 25.14 90.33 67.59 95.06 Cash earnings per share from ordinary activities(Rs.) 37.39 30.14 107.84 78.10 111.29 Cash earnings per share (including extraordinary items)(Rs.) 37.39 30.14 107.84 78.93 112.12 Book value(Rs.) 294.71 190.64 294.71 190.64 210.05 Price / earning(LTM) 34.48 71.55 34.48 71.55 43.19 Price / cash earnings(LTM) 28.80 60.76 28.80 60.76 36.57 Price / book value 13.78 29.93 13.78 29.93 19.38 PE / EPS Growth(LTM) 1.45 0.57 0.99 0.59 0.37
(*)Annualized, net of Provisions. LTM-Last twelve months 51 Infosys Technologies Limited -------------------------------------------------------------------------------- United States Addison 15305 Dallas Parkway, Suite 210, Addison, TX 75001 Tel: (972) 770 0450 Fax: (972) 770 0490 Bellevue 10900 NE 4th Street, #2300, Bellevue, WA 98004 Tel: (425) 990 1028 Fax: (425) 990 1029 Fremont 34760 Campus Drive Fremont, CA 94555 Tel: (510) 742 3000 Fax: (510) 742 3090 Marietta 1950 Spectrum Circle, #400 Marietta, GA 30067 Tel: (770) 857 4428 Fax: (770) 857 2258 Lake Forest 25341 Commercentre Drive, Suite 150, Lake Forest, CA 92630 Tel: (949) 455 9161 Fax: (949) 609 0694 Quincy Two Adams Place, Quincy, MA 02169 Tel: (781) 356 3100 Fax: (781) 356 3150 Troy 100 Liberty Center, #200, West Big Beaver, Troy, MI 48084 Tel: (248) 524 0320 Fax: (248) 524 0321 Phoenix 10851 N Black Canyon Fwy, # 830, Phoenix, AZ 85029 Tel: (602) 944 4855 Fax: (602) 944 4879 Lisle 2300 Cabot Drive, Ste 250, Lisle, IL 60532 Tel: (630) 482 5000 Fax: (630) 505 9144 Berkeley Heights Two Connell Drive, Suite 4100, Berkeley Heights, NJ 07922 Tel: (908) 286 3100 Fax: (908) 286 3125 UK 11th Floor, Emerald House 15 Lansdowne Road Croydon, CR0 2BX, Surrey Tel: 44 20 8774 3300 Fax: 44 20 8686 6631 Argentina Avda. Alicia Moreau de Justo 1848 - Piso 1 Of. 36 C1107AFN - Puerto Madero Capital Federal, Buenos Aires Mobile: 54 11 4412 8010 Australia Level 7, 505 St. Kilda Road Melbourne, Victoria 3004 Tel: 61 3 9868 1607 Fax: 61 3 9868 1652 Level 4, 90 Mount Street North Sydney NSW 2060 Tel: 61 2 9954 0036 Fax: 61 2 8904 1344 Belgium Dreve Richelle 161, Building N 1410 Waterloo, Brussels Tel: 322 352 8743 Fax: 322 352 8844 Canada 5140 Yonge Street Suite 1400 Toronto, Ontario M2N 6L7 Tel: 416 224 7420 Fax: 416 224 7474 France 12 Avenue de l'Arche Faubourg de l'Arche 92419 Courbevoie Cedex, Paris Tel: 331 4691 8454 Fax: 331 4691 8800 Germany TOPAS 1 Mergenthalerallee 77, 65760 Eschborn/Frankfurt Tel: 49 6196 9694 0 Fax: 49 6196 9694 200 Hong Kong 16F Cheung Kong Centre 2 Queen's Road Central Central, Hong Kong Tel: 852 2297 2231 Fax: 852 2297 0066 Japan Kearny Place Akasaka, 2F 2-21-25, Akasaka, Minato-Ku, Tokyo 107-0052 Tel: 81 3 5545 3251 Fax: 81 3 5545 3252 Scandinavia Stureplan 4C, 4tr 114 35, Stockholm, Sweden Tel: 46 8 463 1112 Fax: 46 8 463 1114 Singapore 30, Raffles Place #23-00 Caltex House Singapore 048622 Tel: 65 233 6820 Fax: 65 233 6905 Switzerland Dreikonigstrasse 31A 8002 Zurich Tel: 41 1 208 3905 Fax: 41 1 208 3500 United Arab Emirates Y-45, P.O. Box 8230 Sharjah Airport International Free Zone (Saif Zone), Sharjah Tel: 971 6 5571 068 Fax: 971 6 5571 056 India Bangalore Electronics City Hosur Road Bangalore-561 229 Tel: (080) 8520261 Fax: (080) 8520362 Reddy Building K-310, 1st Main 5th Block, Koramangala Bangalore-560 095 Tel: (080) 5530392 Fax: (080) 5530391 Pavithra Complex #1, 27th Main, 2nd Cross 1st Stage, BTM Layout Bangalore-560 068 Tel: (080) 6681755 Fax: (080) 6680181 Infosys Towers No. 27, Bannerghatta Road 3rd Phase, J. P. Nagar Bangalore-560 076 Tel: (080) 6588668 Fax: (080) 6588676 Bhubaneswar Plot No. E/4 Infocity, Chandaka Bhubaneswar-751 024 Tel: (0674) 320001 Fax: (0674) 320100 Chennai No. 138, Old Mahabalipuram Road Sholinganallur Chennai-600 119 Tel: (044) 4509530/40 Fax: (044) 4500390 Hyderabad Survey No. 210, Manikonda Village, Rajendranagar Mandal, Lingampally, Rangareddy (Dist) Hyderabad-500 019 Tel : (040) 3005222 Fax: (040) 3005223 Kolkata C/61, Bapuji Nagar Regent Estate P.O. Kolkata-92 Pager No. 9628-304450 Mangalore Kottara Cross Kuloor Ferry Road Mangalore-575 006 Tel: (0824) 451485-88 Fax: (0824) 451504 Mohali (Chandigarh) B 100, Phase VIII Industrial Area, SAS Nagar Mohali-160 059 Tel: (0172) 257191/92/94 Fax: (0172) 254193 Mumbai No. 85, Mittal Towers `C' 8th Floor, Nariman Point Mumbai-400 021 Tel: (022) 2882911/14 Fax: (022) 2846489 Mysore No.350, Hebbal Electronics City, Hootagalli, Mysore-571 186 Tel: (0821) 404101 Fax: (0821) 404200 New Delhi K30, Green Park Main Behind Green Park Market New Delhi-110 066 Tel: (011) 6514829-30 Fax: (011) 6853366 Pune Plot No. 1 Infotech Park MIDC Hinjewadi, Taluka Mulshi Pune-411 027 Tel: (020) 2932800-803 Fax: (020) 2932832 Bankers Visit Infosys at ICICI Bank Ltd. www.infy.com Bank of America Send e-mail to Company Secretary infosys@infy.com V. Balakrishnan Call us at Auditors within the U.S. Bharat S Raut and Co. 1-800-ITL INFO Chartered Accountants outside the U.S. Independent auditors 91-80-8520261 (US GAAP) KPMG (C)2002 Infosys Technologies Limited, Bangalore, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this document. 52