EX-19.1 2 f73842orex19-1.txt EXHIBIT 19.1 1 EXHIBIT 19.1 INFOSYS TECHNOLOGIES LIMITED Report for the first quarter ended June 30, 2001 [INFOSYS LOGO] POWERED BY INTELLECT DRIVEN BY VALUES 2 At a glance - Indian GAAP
--------------------------------------------------------------------------------------------------------------- Rs. in crores, except per share data --------------------------------------------------------------------------------------------------------------- Quarter ended Year Ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- For the period Total revenue 626.01 370.64 1,959.94 Export revenue 596.30 351.06 1,874.03 Operating Profit (PBIDT) 254.01 152.75 808.92 Profit after tax (PAT) from ordinary activities 190.03 121.30 623.32 PBIDT as a percentage of total revenue 40.58% 41.21% 41.27% PAT from ordinary activities as a percentage of total revenue 30.36% 32.73% 31.80% Earnings per share from Ordinary activities* Basic 28.72 18.34 94.23 Diluted 28.59 18.11 93.93 Dividend per share (Rs.) -- -- 10.00 Dividend amount -- -- 66.16 Capital investment 101.74 85.84 463.35 At the end of the period Total assets 1,595.61 960.20 1,389.64 Fixed assets-net 623.89 275.43 557.66 Cash and cash equivalents 630.51 471.94 577.74 Working capital 910.69 648.60 797.86 Total debt -- -- -- Net worth 1,595.61 960.20 1,389.64 Equity 33.08 33.08 33.08 Market capitalization 23,900.56 54,974.43 26,926.35 --------- --------- ---------
Note: Market capitalization is calculated by considering the price at the National Stock Exchange on the shares outstanding at the period end. (*) EPS figures have been calculated for the period and have not been annualized.
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- TOTAL REVENUE (IN RS. CRORES) 1,959.94 370.64 626.01
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- EXPORTS (IN RS. CRORES) 1,874.03 351.06 596.30
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- NET PROFIT FROM ORDINARY ACTIVITIES (IN RS. CRORES) 623.32 121.30 190.03
2 3 Letter to the shareholders -------------------------------------------------------------------------------- Dear shareholders, We are pleased to report on a comfortable quarter. Under Indian GAAP, revenues grew by 69% over Q1FY2001 while net profits from ordinary activities witnessed an increase of 57%. Gross employee addition for the quarter stood at 315, including 102 lateral entrants. Our relationships with Fortune 500 and other established companies and our understanding of their decision cycles have enabled us to grow in spite of a challenging environment. In line with our risk management norms, start-up and venture-funded companies accounted for 5% of total revenues for the quarter, down from 17% in Q1FY2001. Despite capital expenditure of Rs. 101.74 crore, we have secured high free cash flows of Rs. 52.78 crore. In light of the slowdown in the US economy, we have experienced pricing pressures from both existing and new customers, especially in new, large-scale offshore initiatives. However, we are encouraged by the intentions of most of our clients to expand the scope of their relationship with us. For instance, Toshiba Corporation has re-engaged Infosys to build the information infrastructure for its global operations across various business lines. New York Life International has entered into a worldwide expansion project with Infosys. We have also launched an availability analysis and capacity-planning exercise across multiple applications for Telstra in Australia. Increasingly, companies are looking for higher returns on their IT investments and are therefore gravitating towards offshoring their outsourcing activities. Infosys' Global Delivery Model combines the benefits of offshore capabilities with our proven ability to deliver high-quality, high-value solutions to clients. We added 26 new clients this quarter. Significant wins include APL, a provider of worldwide container transportation and logistic services; Burlington Northern and Santa Fe Railway Company, the second largest rail network in North America; Pinnacle West Capital Corporation, a US-based company with consolidated revenues of approximately $2 billion; Valeo, a global automotive equipment supplier; Airbus, a leading aircraft manufacturer; BHF-Bank, a German bank; Statoil ASA, a leading Scandinavian retailer of petrol and other oil products; and GreenPoint Mortgage, a specialty finance lender. Our results for the quarter exceed the estimates given at the end of the last fiscal year. Nevertheless, since the external environment continues to be challenging, we have not revised our annual revenue growth forecast of 30% for fiscal 2002. Further, we anticipate total income for the quarter ending September 30, 2001 to be in the range of Rs. 625 crore to Rs. 640 crore. However, our plans for 1500-2000 gross employee additions in fiscal 2002 remain unchanged. During the quarter, we invested $2.2 million in Workadia, a provider of comprehensive, customizable business intranets through browser-accessed hosted portals, along with American Express, Tibco and WestBridge Capital Partners. Workadia will also offer consulting services to help customers select and deploy their intranet applications, content and services. We intend to reformat our Indian GAAP income statement following the functional classification methodology. We believe that this will enable a more meaningful analysis and comparison of revenues, costs and margins as well as facilitate a better understanding of our business by the financial community. The pro forma profit and loss account prepared in accordance with the proposed format is provided elsewhere in this report. Starting next quarter, we intend to report our income statement in the revised format. The jury for The Economic Times' Awards for Corporate Excellence 2000-01 recognized Infosys as the Corporate Citizen of the Year. The Credit Lyonnais study on corporate governance practices in emerging markets has ranked Infosys No. 2 in emerging markets and No. 1 in India. The company has been ranked No. 1 in a recent Dataquest survey of the top 20 Indian software companies. Infosys was ranked as having the Best Investor Relations by an Emerging Markets Company in the UK Awards given by IR Magazine. As in the past, Infoscions participated in several conferences and published research in emerging technology areas, thereby demonstrating the company's commitment to technical thought leadership. On your behalf, we congratulate these high achievers and also extend our appreciation to fellow Infoscions for contributing to yet another successful quarter through their unstinting commitment and hard work. /s/ NANDAN M. NILEKANI /s/ N. R. NARAYANA MURTHY Bangalore Nandan M. Nilekani N. R. Narayana Murthy July 10, 2001 Managing Director, President and Chairman and Chief Operating Officer Chief Executive Officer
3 4 Auditors' report to the members of Infosys Technologies Limited -------------------------------------------------------------------------------- We have audited the attached Balance Sheet of Infosys Technologies Limited (the Company) as at June 30, 2001 and the Profit and Loss Account of the Company for the quarter 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 Account dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance Sheet and Profit and Loss Account 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 June 30, 2001; and (ii) in the case of the Profit and Loss Account, of the profit for the quarter ended on that date. for Bharat S Raut & Co. Chartered Accountants Bangalore Balaji Swaminathan July 10, 2001 Partner 4 5 Balance Sheet as at
-------------------------------------------------------------------------------------------------------- in Rs. -------------------------------------------------------------------------------------------------------- June 30, 2001 June 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 1562,52,96,675 927,12,34,168 1356,55,99,903 -------------- ------------- -------------- 1595,61,01,760 960,19,92,503 1389,63,91,988 ============== ============= ============== APPLICATION OF FUNDS FIXED ASSETS Original cost 738,74,44,287 373,65,25,244 631,14,44,025 Less: Depreciation 278,86,97,454 151,26,93,565 244,13,15,982 -------------- ------------- -------------- Net book value 459,87,46,833 222,38,31,679 387,01,28,043 Add: Capital work-in-progress 164,01,15,365 53,04,58,784 170,65,04,250 -------------- ------------- -------------- 623,88,62,198 275,42,90,463 557,66,32,293 INVESTMENTS 44,44,22,821 36,16,97,129 34,11,54,821 DEFERRED TAX ASSETS 16,59,00,000 -- -- CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors 309,12,07,202 228,39,91,832 302,37,02,417 Cash and bank balances 446,28,93,265 426,00,41,918 385,06,10,285 Loans and advances 468,17,78,978 196,24,84,174 430,27,93,623 -------------- ------------- -------------- 1223,58,79,445 850,65,17,924 1117,71,06,325 Less: Current liabilities 154,53,25,723 116,79,86,403 134,91,81,176 Provisions 158,36,36,981 85,25,26,610 184,93,20,275 -------------- ------------- -------------- NET CURRENT ASSETS 910,69,16,741 648,60,04,911 797,86,04,874 -------------- ------------- -------------- 1595,61,01,760 960,19,92,503 1389,63,91,988 ============== ============= ==============
This is the Balance Sheet referred to in our report of even date. for Bharat S Raut & Co. Chartered Accountants Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Marti G. Subrahmanyam 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 S. Gopalakrishnan K. Dinesh Director Director Director Deputy Managing Director Director S. D. Shibulal T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Balakrishnan Director Director and Director Director Company Secretary and Chief Financial Vice President - Officer Finance
Bangalore, July 10, 2001 5 6 Profit and Loss Account
---------------------------------------------------------------------------------------------------------------------------- in Rs. ---------------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- --------------- INCOME Software development services and products Overseas 596,30,21,488 351,05,78,423 1874,02,66,421 Domestic 16,21,65,861 4,47,21,726 26,53,92,386 Other income 13,49,39,605 15,11,07,532 59,37,14,915 ------------- ------------- -------------- 626,01,26,954 370,64,07,681 1959,93,73,722 ============= ============= ============== EXPENDITURE Software development expenses 318,32,88,293 189,39,05,266 958,17,66,650 Administration and other expenses 53,67,64,710 28,50,11,949 177,54,70,971 Provision for investments -- -- 15,28,98,608 ------------- ------------- -------------- 372,00,53,003 217,89,17,215 1151,01,36,229 Operating profit (PBIDT) 254,00,73,951 152,74,90,466 808,92,37,493 Interest -- -- -- Depreciation 35,48,03,492 17,73,71,717 112,89,45,152 Profit before tax and extraordinary item 218,52,70,459 135,01,18,749 696,02,92,341 Provision for taxation 28,50,00,000 13,71,00,000 72,71,00,000 Profit after tax before extraordinary item 190,02,70,459 121,30,18,749 623,31,92,341 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 190,02,70,459 126,79,62,749 628,81,36,341 ------------- ------------- -------------- AMOUNT AVAILABLE FOR APPROPRIATION 190,02,70,459 126,79,62,749 628,81,36,341 ------------- ------------- -------------- Dividend Interim -- -- 16,53,78,418 Final -- -- 49,61,85,878 Dividend Tax -- -- 8,69,94,211 Amount transferred - general reserve -- -- 553,95,77,834 Balance in Profit and Loss Account 190,02,70,459 126,79,62,749 -- ------------- ------------- -------------- 190,02,70,459 126,79,62,749 628,81,36,341 ============= ============= ============== EARNINGS PER SHARE (equity shares, par value Rs. 5 each) Basic 28.72 19.17 95.06 Diluted 28.59 18.93 94.76 Number of shares used in computing earnings per share Basic 6,61,59,038 6,61,51,036 6,61,52,131 Diluted 6,64,65,149 6,69,81,506 6,63,58,311 ============= ============= ==============
This is the Profit and Loss Account referred to in our report of even date for Bharat S Raut & Co. Chartered Accountants Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Marti G. Subrahmanyam 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 S. Gopalakrishnan K. Dinesh Director Director Director Deputy Managing Director Director S. D. Shibulal T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Balakrishnan Director Director and Director Director Company Secretary and Chief Financial Vice President - Officer Finance
Bangalore, July 10, 2001 6 7 Schedules to the Profit and Loss Account
-------------------------------------------------------------------------------------------------------------------------- in Rs. -------------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- OTHER INCOME Interest received on deposits with banks and others 11,80,75,060 7,56,56,319 38,46,83,890 (Tax deducted at source Rs. 1,71,06,524; Rs. 69,02,206 and Rs. 4,30,12,428 respectively) Miscellaneous income 42,47,253 12,75,233 73,18,542 Exchange differences (*) 1,26,17,292 7,41,75,980 20,17,12,483 ------------- ------------- ------------- 13,49,39,605 15,11,07,532 59,37,14,915 ============= ============= =============
(*) arising on translation of foreign currency deposits maintained abroad includes a realized gain of Rs. Nil (quarter ended June 30, 2000 -- Rs. Nil; year ended March 31, 2001 -- Rs. 5,06,25,885) SOFTWARE DEVELOPMENT EXPENSES Salaries and bonus including overseas staff expenses 251,16,36,702 131,59,03,108 675,86,45,286 Staff welfare 1,97,44,018 1,51,05,488 8,46,06,310 Contribution to provident and other funds 7,02,27,003 9,49,72,021 33,45,76,308 Foreign travel expenses 32,23,60,043 30,21,47,079 147,22,11,655 Consumables 39,15,735 90,94,196 5,86,87,245 Cost of software packages for own use 7,99,74,683 7,54,06,306 31,85,81,751 banking product 4,00,58,029 83,50,829 5,70,13,753 Computer maintenance 1,18,19,183 1,48,09,400 7,19,42,078 Communication expenses 10,22,07,164 4,70,05,737 31,52,55,986 Consultancy charges 2,03,72,893 1,12,91,262 9,19,25,609 Provision for post-sales client support 9,72,840 (1,80,160) 1,83,20,669 ------------- ------------- ------------- 318,32,88,293 189,39,05,266 958,17,66,650 ============= ============= ============= ADMINISTRATION AND OTHER EXPENSES Professional charges 3,84,49,342 2,55,65,071 20,40,21,385 Traveling and conveyance 4,21,84,101 2,72,52,199 18,40,64,822 Rent 6,51,19,891 3,26,94,228 16,94,82,708 Telephone charges 4,24,42,313 2,91,31,034 14,02,60,363 Office maintenance 3,35,01,582 2,73,12,516 12,84,32,642 Power and fuel 4,62,90,782 2,06,50,482 11,78,45,258 Brand building 1,86,21,284 1,09,58,146 10,52,01,392 Donations 2,42,50,825 1,58,07,369 7,21,92,883 Advertisements 61,10,666 1,13,04,298 6,30,77,831 Printing and stationery 3,14,30,676 2,50,66,901 6,25,54,206 Insurance charges 1,27,62,786 52,89,398 5,17,55,298 Repairs to building 2,21,54,234 82,54,771 3,95,22,458 Repairs to plant and machinery 49,17,486 33,86,262 2,26,54,171 Rates and taxes 89,98,658 35,64,331 1,82,17,524 Commission charges 51,76,868 22,64,589 1,79,03,784 Bank charges and commission 4,80,367 5,30,303 59,39,483 Auditor's remuneration audit fees 5,37,500 4,46,250 17,85,000 certification charges -- -- 2,00,000 out-of-pocket expenses 50,000 50,000 2,00,000 Bad loans and advances written off -- -- 4,141 Bad debts written off -- -- 27,70,254 Provision for doubtful loans and advances (7,660) (1,412) 7,11,816 Provision for bad and doubtful debts 6,93,64,922 40,87,456 19,27,45,549 Freight charges 12,09,911 5,43,906 55,72,484 Professional membership and seminar participation fees 53,52,852 28,91,627 2,17,10,613 Marketing expenses 1,53,54,280 53,23,041 4,26,87,545 Postage and courier 1,17,02,538 48,77,958 2,27,86,459 Books and periodicals 33,41,757 38,54,221 1,69,10,978 Commission to non-whole time directors 24,00,000 15,00,000 59,22,049 Sales promotion expenses 11,34,626 1,87,071 70,16,656 Transaction processing fee and filing fees 1,38,49,399 3,72,625 1,52,76,339 Research grants 25,00,000 25,00,000 1,00,00,000 Other miscellaneous expenses 70,82,724 93,47,308 2,60,44,880 ------------- ------------- ------------- 53,67,64,710 28,50,11,949 177,54,70,971 ============= ============= ============= PROVISION FOR TAXATION Current year Income taxes 29,56,00,000 12,31,00,000 71,31,00,000 Deferred taxes (1,06,00,000) -- -- ------------- ------------- ------------- 28,50,00,000 12,31,00,000 71,31,00,000 Prior years -- 1,40,00,000 1,40,00,000 ------------- ------------- ------------- 28,50,00,000 13,71,00,000 72,71,00,000 ============= ============= =============
7 8 1. Significant accounting policies and notes on accounts -------------------------------------------------------------------------------- Company overview Infosys Technologies Limited ("Infosys" or "the company") is a publicly held company providing information technology ("IT") solutions principally to Fortune 500 and other established corporations. Infosys' range of services include IT consulting and architecture, application development, e-commerce and Internet consulting, and software maintenance. In addition, the company develops and markets certain software products. Infosys has 16 state-of-the-art offshore software development facilities located throughout India and 7 off-site software development centers and a consulting office overseas. The offshore software development facilities enable the Company to provide high quality, cost-effective services to clients in a resource-constrained environment. The company has its headquarters in Bangalore, India, and offices in the Americas, Europe and Asia that provide marketing and administrative support. 1.1 Significant accounting policies 1.1.1 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. The ICAI has issued accounting standards on segment reporting, related party disclosures, 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 have been adopted in the preparation of these financial statements. The accounting standard on consolidated financial statements becomes effective from April 1, 2001 should a company consolidate its financial statements. 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 revenue 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, provision for doubtful debts, future obligations under employee retirement benefit plans and the useful lives of fixed assets. Actual results could differ from those estimates. 1.1.2 Revenue recognition Revenue from software development on fixed-price contracts is recognized according to the milestones achieved as specified in the contracts on the proportionate-completion method based on the work completed. On time-and- materials contracts, revenue is recognized based on software developed and invoiced as per the terms of specific contracts. Annual Technical Services revenue is recognized proportionately over the period in which services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license. Interest is recognized using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognized when the company's right to receive dividend is established. Revenue from the sale of special import licenses is recognized when the licenses are transferred. 1.1.3 Expenditure The cost of software user licenses purchased for software development and the rendering of IT services is charged to revenue in the year the software is acquired. Project costs in the nature of salaries, travel and other expenses incurred on fixed price contracts, where milestones are yet to be reached are classified as "Costs in excess of billings" in the balance sheet. Charges relating to non-cancelable long-term operating leases are computed on the basis of the lease rentals payable as per the relevant lease agreements. Provisions are made for all known losses and liabilities, future unforeseeable factors that may affect the profit on fixed-price software development contracts and also towards likely expenses for providing post-sales client support. The leave encashment liability of the company is provided on the basis of an actuarial valuation. 8 9 1.1.4 Fixed assets and capital work-in-progress Fixed assets are stated at cost, after reducing accumulated depreciation until the date of the balance sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition. Capital work-in-progress includes the cost of fixed assets that are not yet ready for their intended use, advances paid to acquire fixed assets and the cost of assets not put to use before the balance sheet date. 1.1.5 Depreciation Depreciation on fixed assets is determined using the straight-line method based on useful lives of assets as estimated by the company. Depreciation for assets purchased/sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5,000/- are entirely depreciated in the year of acquisition. Management estimates the useful lives for the various fixed assets as follows: Buildings 15 years Furniture and fixtures 5 years Plant and machinery 5 years Vehicles 5 years Computer equipment 2-5 years
1.1.6 Retirement benefits to employees 1.1.6a Gratuity In accordance with the Payment of Gratuity Act, 1972, Infosys provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, based upon which, the company contributes to the Infosys Technologies Limited Employees' Gratuity Fund Trust (the "Trust"). Trustees administer contributions made to the Trust and invest in specific designated securities as mandated by law, which generally comprise central and state government bonds and debt instruments of government-owned corporations. 1.1.6b Superannuation Apart from being covered under the Gratuity Plan described above, certain employees of Infosys are also participants of a defined contribution plan. The company makes monthly contributions under the superannuation plan (the "Plan") to the Infosys Technologies Limited Employees Superannuation Fund Trust based on a specified percentage of each covered employee's salary. The company has no further obligations to the Plan beyond its monthly contributions. 1.1.6c Provident fund Eligible employees also receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Infosys contributes a part of the contributions to the Infosys Technologies Limited Employees Provident Fund Trust. The remainders of the contributions are made to the Government administered provident fund. The company has no further obligations under the provident fund plan beyond its monthly contributions. 1.1.7 Research and development Revenue expenditure incurred on research and development is charged off as incurred. Capital expenditure incurred on research and development is depreciated over the estimated useful lives of the related assets. 1.1.8 Foreign currency transactions Revenue from overseas clients and collections deposited in foreign currency bank accounts are recorded at the exchange rate as of the date of the respective transactions. Expenditure in foreign currency is accounted at the exchange rate prevalent when such expenditure is incurred. Disbursements made out of foreign currency bank accounts are reported at a rate that approximates the actual monthly rate. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure is incurred is converted into Indian Rupees. The exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise. Fixed assets purchased at overseas offices are recorded at cost, based on the exchange rate as of the date of purchase. The charge for depreciation is determined as per the company's accounting policy. Current assets and current liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the balance sheet. The resulting difference is also recorded in the profit and loss account. In the case of forward contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as income or expense over the life of the contract. 9 10 1.1.9 Income tax Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions. Provisions are recorded as considered appropriate for matters under appeal due to disallowances or for other reasons. The differences that result between the profit offered for income taxes and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. 1.1.10 Earnings per share In determining earnings per share, the company considers the net profit after tax and includes the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. the average market value of the outstanding shares). The number of shares and potentially dilutive equity shares are adjusted for stock splits and bonus shares, as appropriate. 1.1.11 Investments Trade investments refer to the investments made with the aim of enhancing the company's business interests in software development and services. Investments are either classified as current or long-term. Current investments are carried at the lower of cost and fair value. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment. Long-term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of such investment. The investment in the subsidiary (as per the Companies Act, 1956) is accounted on the cost method, whereby, the investment is carried at cost and the company recognizes only dividends received from the subsidiary as income in the profit and loss account. Provisions are recorded to recognize any decline, other than temporary, in the carrying value of the investment. 1.2 Notes on accounts The previous period's/year's figures have been recast/restated, wherever necessary, to conform to the current period's classification. 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. 1,06,00,000 for the quarter ended June 30, 2001 is included in the provision for taxation. 1.2.2 Capital commitments and contingent liabilities a. The estimated amount of contracts remaining to be executed on capital account, and not provided for (net of advances) is Rs. 143,18,57,443 as at June 30, 2001. The amount of such contracts as at June 30, 2000 was Rs. 118,86,56,390 and as at March 31, 2001 was Rs. 158,25,35,171. b. The company has outstanding guarantees and counter guarantees of Rs.11,97,30,000 as at June 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 June 30, 2000 were Rs. 5,71,30,000 and as at March 31, 2001 were Rs. 6,83,05,000. c. Claims against the company, not acknowledged as debts, amounted to Rs. 4,52,10,368 as at June 30, 2001. Such claims as at June 30, 2000 were Rs. 73,78,977 and as at March 31, 2001 Rs. 8,75,532. d. Outstanding forward contracts amounted to US$ 35,000,000 (approximately Rs. 166,13,75,000 at quarter end exchange rates) at June 30, 2001. Such contracts as at June 30, 2000 were Rs. Nil and as at March 31, 2000 were US$ 20,000,000 (approximately Rs. 93,12,00,000 at year end exchange rates). 10 11 1.2.3 Quantitative details 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. 1.2.4 Imports (valued on the cost, insurance and freight basis)
in Rs. ------------------------------------------------------------------------------------------------------ Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Capital goods 14,65,25,897 16,76,46,420 113,56,33,008 Software packages 1,66,61,395 61,84,284 1,67,88,389 ------------ ------------ -------------
1.2.5 Earnings in foreign exchange (on the receipts basis)
in Rs. ------------------------------------------------------------------------------------------------------ Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Income from software development services and products 585,75,27,673 304,28,30,950 1708,67,49,891 Interest received on deposits with banks 1,67,51,659 5,49,26,100 19,55,81,989
Expenditure in foreign currency (on the payments basis)
in Rs. ------------------------------------------------------------------------------------------------------ Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Travel expenses 20,90,93,035 17,70,40,100 107,69,86,908 Professional charges 3,43,03,690 72,06,920 14,63,89,491 Other expenditure incurred overseas for software development 202,09,24,973 80,78,78,995 489,94,99,776
Net earnings in foreign currency (on the receipts and payments basis)
in Rs. ------------------------------------------------------------------------------------------------------ Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Net earnings in foreign exchange 360,99,57,634 210,56,31,035 1115,94,55,705
1.2.6 Fixed assets Depreciation on assets costing less than Rs. 5,000 each During the quarter ended June 30, 2001, the company charged depreciation at 100% in respect of assets costing less than Rs. 5,000 each, amounting to Rs. 2,85,88,155. The corresponding amount for the quarter ended June 30, 2000 was Rs. 3,40,36,128 and for the year ended March 31, 2001 was Rs. 34,99,43,502. Profit/loss on disposal of fixed assets The company recorded a profit of Rs. 2,93,670 on the sale of fixed assets during the quarter ended June 30, 2001. The loss charged for the quarter ended June 30, 2000 is Rs. 45,109 and the profit for the year ended March 31, 2001 was Rs. 9,17,890. 1.2.7 Obligations on long-term non-cancelable operating leases The lease rentals charged during the period and maximum obligations on long-term non-cancelable operating leases payable as per the rentals stated in the respective agreements are as follows:
in Rs. ------------------------------------------------------------------------------------------------------ Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Lease rentals paid during the period/year 6,51,19,891 3,26,94,228 16,94,82,708
11 12
Lease obligations As at June 30, As at March 31, 2001 2000 2001 ------------ ------------ --------------- Within one year of the balance sheet date 11,10,41,975 4,43,04,530 7,30,43,980 Due in a period between one year and five years 35,80,20,475 14,82,21,361 27,71,79,409 Due after five years 4,12,29,308 4,35,12,036 14,40,05,657 ------------ ------------ ------------ 51,02,91,758 23,60,37,927 49,42,29,046 ------------ ------------ ------------
The operating lease arrangements extend for a maximum of 10 years from their respective dates of inception and relate to rented overseas premises. 1.2.8 Managerial remuneration paid to the chairman, managing director and whole-time directors
in Rs. ---------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000(*) March 31, 2001(*) ------------- ------------- -------------- Salary 44,39,262 22,64,968 1,54,84,785 Contribution to provident fund and other funds 4,79,325 3,83,405 18,29,116 Perquisites and incentives 67,41,120 7,39,873 89,20,426
(*) includes the remuneration paid to three directors who were co-opted into the board on May 27, 2000. 1.2.9 Managerial remuneration paid to non-whole-time directors
in Rs. ----------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Commission -- -- 59,22,049 Sitting fees 1,30,000 1,12,000 2,57,000 Reimbursement of expenses 8,38,244 2,04,161 9,09,070
1.2.10 Exchange differences
in Rs. ---------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Gains on the translation of foreign currency deposits 1,26,17,292 7,41,75,980 20,17,12,483 Net realized and unrealized exchange gains - others 3,62,20,186 7,63,71,369 19,45,83,779 Total net realized and unrealized gains 4,88,37,478 15,05,47,349 39,62,96,262
Total realized and unrealized exchange gains comprise, gains on the translation of foreign currency deposits which is classified as "other income" and net realized and unrealized exchange gains, which are classified as "Income from software development services and products -- overseas". 1.2.11 Research and development expenditure
in Rs. ---------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Capital 7,71,248 20,02,050 2,14,29,903 Revenue 3,85,05,021 3,15,82,490 14,97,08,196 Total research and development expenses 3,92,76,269 3,35,84,540 17,11,38,099
1.2.12 Unearned revenue Unearned revenue as at June 30, 2001 amounting to Rs. 36,28,63,771 (as at June 30, 2000 - Rs. 64,25,65,243 and as at March 31, 2001 - Rs. 34,82,60,201) primarily consists of client billings on fixed-price, fixed-time-frame contracts for which the related costs have not yet been incurred. 1.2.13 Dues to small-scale industrial undertakings As at June 30, 2001, the company had no outstanding dues to small-scale industrial undertakings (as at June 30, 2000 - Rs. Nil and as at March 31, 2001 - Rs. Nil). 1.2.14 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 June 30, 2001 are Rs. Nil (as at June 30, 2000 - Rs. 66,13,00,000 and as at March 31, 2001 - Rs. Nil). 12 13 1.2.15 Stock option plans The company currently has three stock option plans. These are summarized below. 1994 Stock Option Plan (the "1994 Plan") As of June 30, 2001 the options to acquire 2,69,000 shares were outstanding with the Employee Welfare Trust and options to acquire 3,24,600 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, 14,15,000 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 board of directors approved the 1998 Plan in December 1997 and by the shareholders in January 1998. The Government of India approved 29,40,000 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.
Number of options granted, exercised and forfeited Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Options granted, beginning of period/year 15,65,506 6,89,500 6,89,500 Granted during the period/year 97,800 1,46,700 9,64,840 Exercised during the period/year (5,200) (1,334) (12,434) Forfeited during the period/year (31,620) (11,500) (76,400) Options granted, end of period/year 16,26,486 8,23,366 15,65,506 --------- --------- --------- Weighted average exercise price US$ 88.57 US$ 77.06 US$ 90.98 Rs. 4,162 Rs. 3,440 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.
Number of options granted, exercised and forfeited Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Options granted, beginning of period/year 27,93,980 10,06,800 10,06,800 Granted during the period/year 4,15,250 6,58,650 19,57,830 Exercised during the period/year -- -- (1,200) Forfeited during the period/year (41,860) (23,600) (1,69,450) Options granted, end of period/year 31,67,370 16,41,850 27,93,980 --------- --------- --------- Weighted average exercise price Rs. 5,346 Rs. 4,931 Rs. 5,572 --------- --------- ---------
The aggregate options outstanding and considered for dilution as at June 30, 2001 are 39,80,613 (as at June 30, 2000 - 20,53,533 options and as at March 31, 2001- 35,76,733 options). 1.2.16 Pro-forma disclosures relating to the Employee Stock Option Plans ("ESOPs") The Securities and Exchange Board of India (SEBI) issued the Employee Stock Option Scheme and Employee Stock Purchase Scheme Guidelines in 1999, which is applicable to all stock option schemes established on or after June 19, 1999. In accordance with these guidelines, the excess of the market price of the underlying equity shares as of the date of the grant of the options over the exercise price of the options, including up-front payments, if any, is to be recognized and amortized on a straight-line basis over the vesting period. All options under the 1998 and 1999 stock option plans have been issued at fair market value, hence there are no compensation costs. The company's 1994 stock option plan was established prior to the SEBI guidelines on stock options. 13 14 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 Year ended June 30, 2001 June 30, 2000 March 31, 2001 Net profit: As reported 190,02,70,459 126,79,62,749 628,81,36,341 Adjusted pro forma 184,11,62,755 121,14,70,502 605,55,42,584
1.2.17 Provision for taxation The company's profits from export activities are partly deductible from taxable income. However, most of Infosys' operations are conducted through 100% Export Oriented Units ("EOU"), which are entitled to a tax holiday for a period of 10 years from the date of commencement of operations. The Government of India amended the tax incentive available to companies operating through EOUs. The tenure of tax exemption available to such companies is restricted to a maximum of 10 consecutive years commencing from the fiscal year in which the unit commences software development and expires on March 31, 2009. Additionally, export related tax deductions apart from the 100% EOU scheme earlier described are being phased out by fiscal 2004. The provision for taxation includes tax liabilities in India on the company's global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries. 1.2.18 Cash and bank balances Details of balances kept with non-scheduled banks as on balance sheet dates and the maximum balances kept with non-schedule banks during the period/year are as follows:
in Rs. ----------------------------------------------------------------------------------------------------------------- Balances with non-scheduled banks As at June 30, As at March 31, 2001 2000 2001 ------------ ------------ --------------- In deposit account in foreign currency HSBC Bank Middle East, Bahrain -- 69,43,99,799 -- ------------ ------------ ------------ -- 69,43,99,799 -- ------------ ------------ ------------ In current accounts ABN Amro Bank, Heerlen, Netherlands -- 15,95,544 -- ABN Amro Bank, Brussels, Belgium 10,31,831 13,26,688 8,73,096 Bank of America, Concord, USA 2,15,66,340 -- 27,09,344 Bank of America, Hong Kong 6,88,913 -- 4,25,885 Bank of America, Los Angeles, USA -- 11,88,502 -- Bank of America, Milpitas, USA -- 3,52,03,130 23,59,820 Bank of America, Palo Alto, USA 43,94,71,834 51,53,93,175 35,70,97,922 Bank of Boston, Boston, USA 60,83,049 5,46,035 21,30,626 Bank of Melbourne, Melbourne, Australia 14,45,702 11,10,636 17,26,245 Bank of Melbourne, Victoria, Australia 3,82,761 -- 5,46,759 Barclays Bank, London, UK 37,69,185 37,03,573 38,36,868 Deutsche Bank, Frankfurt, Germany 10,47,613 36,94,391 20,22,282 First Chicago Bank, Chicago, USA -- 16,42,693 -- Hong Kong Bank of Canada, Toronto, Canada 5,17,677 38,77,993 5,54,537 HSBC Bank PLC - Croydon, London 18,93,61,988 -- 9,76,68,994 Michigan National Bank, Detroit, USA -- 13,58,243 -- Nations Bank, Dallas, USA 1,12,89,082 1,28,80,583 1,17,15,900 Nations Bank, Georgia, USA -- 16,88,456 -- National Bank of Sharjah, UAE 14,08,179 -- -- Nordbanken, Stockholm, Sweden 12,82,320 16,97,129 15,86,376 Nova Scotia Bank, Toronto, Canada 5,30,93,094 1,28,52,421 5,21,19,103 Seafirst Bank, Seattle, USA -- 25,84,499 -- Sanwa Bank, Tokyo, Japan 23,48,934 39,29,641 12,18,670 Summit Bank, Bridgewater, USA 35,44,309 30,99,673 14,75,012 ------------ ------------ ------------ 73,83,32,811 60,93,73,005 54,00,67,439 ------------ ------------ ------------
14 15
Maximum balance held in non-scheduled banks during the period/year Quarter ended June 30, Year ended 2001 2000 March 31, 2001 ------------ ------------ -------------- in deposit account in foreign currency HSBC Bank Middle East, Bahrain -- 69,43,99,799 72,78,38,970 in current accounts ABN Amro Bank, Heerlen, Netherlands -- 15,95,544 15,95,544 ABN Amro Bank, Brussels, Belgium 18,31,307 16,26,311 25,10,415 Bank of America, Concord, USA 5,53,09,105 -- 11,56,12,302 Bank of America, Hong Kong 10,70,247 -- 11,81,752 Bank of America, Los Angeles, USA -- 50,65,143 3,08,58,501 Bank of America, Milpitas, USA 28,83,464 3,52,03,130 5,89,07,898 Bank of America, Palo Alto, USA 63,57,70,026 69,60,58,192 92,96,33,056 Bank of Boston, Boston, USA 60,98,815 28,18,994 72,15,459 Bank of Melbourne, Melbourne, Australia 27,69,994 11,56,382 17,26,245 Bank of Melbourne, Victoria, Australia 21,32,997 -- 16,34,330 Barclays Bank, London, UK 38,78,448 57,24,186 3,63,48,726 Deutsche Bank, Frankfurt, Germany 56,90,413 36,94,391 36,94,391 First Chicago Bank, Chicago, USA -- 22,07,085 22,07,085 Hong Kong Bank of Canada, Toronto, Canada 5,54,537 1,01,66,688 1,01,66,688 HSBC Bank PLC - Croydon, London 24,49,63,498 -- 16,51,68,657 Michigan National Bank, Detroit, USA -- 17,44,660 17,44,660 National Bank of Sharjah, UAE 14,08,179 -- -- Nations Bank, Dallas, USA 2,55,96,002 2,04,48,137 3,36,69,804 Nations Bank, Georgia, USA -- 21,33,612 21,33,612 Nordbanken, Stockholm, Sweden 17,51,168 16,97,129 23,20,446 Nova Scotia Bank, Toronto, Canada 9,66,13,821 1,28,52,421 7,57,18,591 Seafirst Bank, Seattle, USA -- 31,46,158 31,46,158 Sanwa Bank, Tokyo, Japan 1,15,86,471 48,69,517 1,40,25,843 Summit Bank, Bridgewater, USA 83,25,596 35,11,056 88,91,861 ------------ ------------ ------------
The cash and bank balances include interest accrued but not due on fixed deposits amounting to Rs. 2,69,09,484 for the quarter ended June 30, 2001 (the quarter ended June 30, 2000 - Rs. 27,33,684 and the year ended March 31, 2001 - Rs. 1,94,43,708). 1.2.19 Loans and advances "Advances" mainly comprises prepaid travel and per-diem expenses and advances to vendors. Deposits with financial institutions and a body corporate comprise:
in Rs. -------------------------------------------------------------------------------------------------------------- As at June 30, As at March 31, 2001 2000 2001 ------------- ------------ --------------- Deposits with financial institutions: Housing Development Finance Corporation Limited 50,76,20,299 10,41,44,577 50,87,03,015 ICICI Limited 31,41,17,812 10,20,30,140 50,87,01,373 IDBI Limited 51,49,98,314 -- 40,35,30,424 Deposits with body corporate: GE Capital Services India Limited 50,54,96,783 25,31,55,167 50,58,17,345 ------------- ------------ ------------- 184,22,33,208 45,93,29,884 192,67,52,157 ------------- ------------ -------------
The above amounts include interest accrued but not due amounting to Rs. 3,22,33,208 (the quarter ended June 30, 2000 -- Rs. 93,29,884 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. 1.2.20 Current liabilities Sundry creditors for other liabilities represent mainly the retention amounts payable to the vendors, and amounts accrued for various other operational expenses and taxes. 1.2.21 Fixed assets The company has entered into lease-cum-sale agreements to acquire certain properties. In accordance with the terms of these agreements, the company has the option to purchase the properties on expiry of the lease period. The company has already paid 99% of the value of the properties at the time of entering into the lease-cum-sale agreements. These amounts are disclosed as "Land - leasehold" under "Fixed assets" in the financial statements. 15 16 1.2.22 Transfer of intellectual property rights During the year ended March 31, 2001, the company transferred its intellectual property rights in OnScan - a web- focused wireless-enabled notification product, to OnMobile Systems, Inc. (formerly OnScan Inc.) USA, a company incubated by Infosys as part of its ongoing effort to encourage and promote budding entrepreneurs among its employees. The rights were transferred for Rs. 8,93,40,000 (US$ 2 million), received as equity, preferred voting and preferred non-voting securities in OnMobile Systems, Inc. The income of Rs. 5,49,44,000 (net of tax) arising on the transfer is disclosed as an extraordinary item in the statement of profit and loss of that year. The transaction was completed in the quarter ended June 30, 2000. The item has not been considered in the statement of cash flows since it is a non-cash transaction except for the payment of the related income tax. 1.2.23 Investments Workadia Inc., USA During the quarter ended June 30, 2001, the company made a strategic investment of Rs. 10,32,68,000 comprising 4,40,000 fully paid Series "B" convertible preferred stock, par value of US$ 0.001, at US$ 5.00 each, in Workadia, Inc., USA ("Workadia"). 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. Other information During the year ended March 31, 2001, the company made strategic investments aggregating to Rs. 26,63,94,960 in Alpha Thinx Mobile Phone Services AG, Austria ("Alpha Thinx"); Asia Net Media BVI Limited, the British Virgin Islands; CiDRA Corporation, USA ("CiDRA"); M-Commerce Ventures Pte. Limited, Singapore; and Purpleyogi Inc., USA. Of the above investments, the company invested Rs. 13,40,08,660 in CiDRA during the quarter ended June 30, 2000. There were no provisions as of the quarter ended June 30, 2000. An amount of Rs. 15,28,98,608 was provided for the investments in Alpha Thinx and EC Cubed, Inc., USA, during the year ended March 31, 2001, when the investee companies filed for liquidation. 1.2.24 Segment reporting The company's operations predominantly relate to providing IT services, delivered to customers globally operating in various industry segments. Accordingly, IT service revenues represented along industry classes comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of the geographical location of customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record revenue and expenditure in individual segments. These are as set out in the note on significant accounting policies. Industry segments at the company are primarily -- financial services comprising customers providing banking, finance and insurance services; manufacturing companies; companies in the telecommunications and the retailing industries; and others such as utilities, transportation and logistics companies. Revenue and direct expenses in relation to segments is categorized based on items that are individually identifiable to that segment, while the remainder of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. 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. Customer relationships are driven based on the location of the respective client. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and the Rest of the World comprising all other places except, those mentioned above and India. Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized. 16 17 Industry segments
in Rs. ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended June 30, 2001 Financial services Manufacturing Telecom Retail Others Total --------------------------- ------------------ ------------- ------------- ------------ ------------- ------------- Revenues 225,58,15,275 112,39,92,830 102,27,63,867 68,04,42,241 104,21,73,136 612,51,87,349 Identifiable operating expenses 78,15,77,975 44,60,90,828 25,93,53,742 18,15,68,558 36,55,70,440 203,41,61,543 Allocated expenses 64,61,93,970 30,20,16,064 27,48,15,915 18,28,34,341 28,00,31,170 168,58,91,460 Segmental operating income 82,80,43,330 37,58,85,938 48,85,94,210 31,60,39,342 39,65,71,526 240,51,34,346 Unallocable expenses 35,48,03,492 ------------- Operating income 205,03,30,854 Other income (expense), net 13,49,39,605 ------------- Net profit before taxes 218,52,70,459 Income taxes 28,50,00,000 ------------- Net profit after taxes 190,02,70,459 =============
Quarter ended June 30, 2000 Financial services Manufacturing Telecom Retail Others Total --------------------------- ------------------ ------------- ------------- ------------ ------------- ------------- Revenues 104,52,58,244 70,75,04,730 65,77,30,528 31,99,77,014 82,48,29,633 355,53,00,149 Identifiable operating expenses 44,57,33,666 25,67,43,679 18,17,52,649 12,03,85,355 27,81,28,026 128,27,43,375 Allocated expenses 26,93,70,795 17,66,76,779 16,42,47,257 7,99,04,072 20,59,74,937 89,61,73,840 Segmental operating income 33,01,53,783 27,40,84,272 31,17,30,622 11,96,87,587 34,07,26,670 137,63,82,934 Unallocable expenses 17,73,71,717 ------------- Operating income 119,90,11,217 Other income (expense), net 15,11,07,532 ------------- Net profit before taxes 135,01,18,749 Income taxes 13,71,00,000 ------------- Net profit after taxes 121,30,18,749 =============
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 ==============
Geographic segments
Quarter ended June 30, 2001 North America Europe India Rest of the World Total --------------------------- ------------- ------------- ------------ ----------------- ------------- Revenues 442,08,60,840 121,41,46,804 16,21,65,862 32,80,13,843 612,51,87,349 Identifiable operating expenses 142,17,68,385 43,03,39,633 4,84,21,938 13,36,31,587 203,41,61,543 Allocated expenses 120,12,05,791 32,98,99,589 6,14,83,134 9,33,02,946 168,58,91,460 Segmental operating income 179,78,86,664 45,39,07,582 5,22,60,790 10,10,79,310 240,51,34,346 Unallocable expenses 35,48,03,492 ------------- Operating income 205,03,30,854 Other income (expense), net 13,49,39,605 ------------- Net profit before taxes 218,52,70,459 Income taxes 28,50,00,000 ------------- Net profit after taxes 190,02,70,459 =============
Quarter ended June 30, 2000 North America Europe India Rest of the World Total --------------------------- ------------- ------------- ------------ ----------------- ------------- Revenues 264,83,86,416 60,98,27,474 4,47,21,726 25,23,64,533 355,53,00,149 Identifiable operating expenses 94,89,69,281 22,57,03,906 1,69,12,413 9,11,57,775 128,27,43,375 Allocated expenses 66,57,79,233 15,33,04,845 1,23,54,855 6,47,34,907 89,61,73,840 Segmental operating income 103,36,37,902 23,08,18,723 1,54,54,458 9,64,71,851 137,63,82,934 Unallocable expenses 17,73,71,717 ------------- Operating income 119,90,11,217 Other income (expense), net 15,11,07,532 ------------- Net profit before taxes 135,01,18,749 Income taxes 13,71,00,000 ------------- Net profit after taxes 121,30,18,749 =============
17 18
in Rs. ---------------------------------------------------------------------------------------------------------------------------------- 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 ==============
1.2.25 Related party transactions The company entered into related party transactions during the quarter with Yantra Corporation, USA, the subsidiary of the company, and key management personnel. The transactions with Yantra Corporation comprise sales of Rs. 1,52,48,460 during the quarter ended June 30, 2001 (the quarter ended June 30, 2000 -- Rs. 5,18,56,649 and the year ended March 31, 2001 - Rs. 19,64,85,967). The outstanding dues from the subsidiary as at June 30, 2001 are Rs. 46,90,468 (as at June 30, 2000 - Rs. 1,68,19,590 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 June 30, 2001 are Rs. 2,04,62,199 (as at June 30, 2000 - Rs. 1,51,84,336 and as at March 31, 2001 - Rs. 1,05,74,738). 1.2.26 Provisions for doubtful debts Periodically, the company evaluates all customer dues to the company for collectibles. The need for provisions is assessed based on various factors including collectibles of specific dues, risk perceptions of the industry in which the customer operates, general economic factors, which could effect the customer's ability to settle. The company normally provides for debtor dues outstanding for 180 days or longer. As at June 30, 2001 the company has provided for doubtful debts of Rs. 9,44,42,708 (as at June 30, 2000 -- Rs. Nil and as at March 31, 2001 -- Rs. 8,55,48,753) on dues from certain customers although the outstanding amounts were less than 180 days old, since the amounts were considered doubtful of recovery. The company continues pursuing the parties for recovery of the dues, in part or full. 1.2.27 Dividends remitted in foreign currencies Infosys does not make any direct remittances of dividends in foreign currency. The company remits the equivalent of the dividends payable to the holders of ADS ("ADS holders") in Indian Rupees to the depositary bank, which is the registered shareholder on record for all owners of the company's ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders. Particulars of dividends remitted are as follows:
Particulars Number of shares to which the Quarter ended Year ended dividends relate June 30, 2001 June 30, 2000 March 31,2001 ---------------- ------------- ------------- ------------- Final dividend for fiscal 2000 2,081,900 -- 62,11,810 62,11,810 Interim dividend for fiscal 2001 2,082,567 -- -- 52,06,417 Final dividend for fiscal 2001 2,088,517 1,56,63,878 -- -- ----------- --------- ----------- 1,56,63,878 62,11,810 1,14,18,227 ----------- --------- -----------
1.2.28 Reconciliation of basic and diluted shares used in computing earnings per share
Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Number of shares considered as basic weighted average shares outstanding 6,61,59,038 6,61,51,036 6,61,52,131 Add: Effect of dilutive issues of shares/stock options 3,06,111 8,30,470 2,06,180 ----------- ----------- ----------- Number of shares considered as weighted average shares and potential shares outstanding 6,64,65,149 6,69,81,506 6,63,58,311 ----------- ----------- -----------
18 19 Statement of Cash Flows
in Rs. ----------------------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 218,52,70,459 135,01,18,749 696,02,92,341 Adjustments to reconcile profit before tax to cash provided by operating activities (Profit)/loss on sale of fixed assets (2,93,670) 45,109 (9,17,890) Depreciation and amortization 35,48,03,492 17,73,71,717 112,89,45,152 Interest income (11,80,75,060) (7,56,56,319) (38,46,83,890) Effect of deferred taxes (1,06,00,000) -- -- Provisions on long-term investments -- -- 15,28,98,608 Provision for e-inventing -- (39,00,977) -- Income taxes paid during the period/year (37,88,96,758) (8,66,32,475) (85,18,05,440) Exchange differences on translation of foreign currency deposits (1,26,17,292) (7,41,75,980) (20,17,12,483) Changes in current assets and liabilities Sundry debtors (6,75,04,785) (92,22,10,579) (166,19,21,164) Loans and advances (8,94,66,842) (8,10,46,519) (34,72,64,731) Current liabilities and provisions 19,71,17,386 41,34,59,784 60,92,54,409 ------------- ------------- ------------- NET CASH GENERATED BY OPERATING ACTIVITIES 205,97,36,930 69,73,72,510 540,30,84,912 ------------- ------------- ------------- CASH FLOWS 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) ------------- ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets and change in capital work-in-progress (101,73,74,001) (85,83,69,973) (463,35,45,172) Proceeds on disposal of fixed assets 6,34,274 50,738 22,73,671 Long-term investments in securities (10,32,68,000) (13,40,08,660) (26,63,64,960) Interest income 11,80,75,060 7,56,56,319 38,46,83,890 ------------- ------------- ------------- NET CASH USED IN INVESTING ACTIVITIES (100,19,32,667) (91,66,71,576) (451,29,52,571) ------------- ------------- ------------- Effect of exchange differences on foreign currency deposits translations 1,26,17,292 7,41,75,980 20,17,12,483 Net increase/(decrease) in cash and cash equivalents during the period/year 52,77,64,031 (36,43,65,793) 69,36,24,847 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD/YEAR 577,73,62,442 508,37,37,595 508,37,37,595 ------------- ------------- ------------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD/YEAR 630,51,26,473 471,93,71,802 577,73,62,442 ============= ============= =============
This is the Statement of Cash Flows referred to in our certificate of even date. for Bharat S Raut & Co. Chartered Accountants Balaji Swaminathan N. R. Narayana Murthy Nandan M. Nilekani Deepak M. Satwalekar Marti G. Subrahmanyam 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 S. Gopalakrishnan K. Dinesh Director Director Director Deputy Managing Director Director S. D. Shibulal T. V. Mohandas Pai Phaneesh Murthy Srinath Batni V. Balakrishnan Director Director and Director Director Company Secretary and Chief Financial Vice President - Officer Finance
Bangalore, July 10, 2001 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 ended June 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 Balaji Swaminathan July 10, 2001 Partner 19 20 Statement of Cash flows
in Rs. ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- INCOME TAXES PAID DURING THE PERIOD/YEAR Charge as per the Profit and Loss Account 28,50,00,000 13,71,00,000 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 37,40,37,462 8,66,32,475 69,33,01,439 Less: Increase/(decrease) in income tax provision (28,01,40,704) (17,14,96,000) (60,29,91,999) ------------- ------------- ------------- 37,88,96,758 8,66,32,475 85,18,05,440 ============= ============= ============= CHANGE IN LOANS AND ADVANCES DURING THE PERIOD/YEAR As per the Balance Sheet 468,17,78,978 196,24,84,174 430,27,93,623 Less: Deposits with financial institutions and body corporate, included in cash and cash equivalents (184,22,33,208) (45,93,29,884) (192,67,52,157) Advance income taxes separately considered (161,14,35,254) (63,07,28,828) (123,73,97,792) ------------- ------------- ------------- 122,81,10,516 87,24,25,462 113,86,43,674 Less: Opening balance considered (113,86,43,674) (79,13,78,943) (79,13,78,943) ------------- ------------- ------------- 8,94,66,842 8,10,46,519 34,72,64,731 ============= ============= ============= CHANGE IN CURRENT LIABILITIES AND PROVISIONS DURING THE PERIOD/YEAR As per the Balance Sheet 312,89,62,704 202,05,13,013 319,85,01,451 Add/ Provisions separately considered in the Cash flow Statement (less): Income taxes (150,91,52,445) (79,75,15,742) (122,90,11,741) Provision for e-inventing -- 39,00,977 -- Dividends -- -- (49,61,85,878) Dividend tax -- -- (5,06,10,959) ------------- ------------- ------------- 161,98,10,259 122,68,98,248 142,26,92,873 Less: Opening balance considered (142,26,92,873) (81,34,38,464) (81,34,38,464) ------------- ------------- ------------- 19,71,17,386 41,34,59,784 60,92,54,409 ============= ============= ============= PURCHASE OF FIXED ASSETS AND CHANGE IN CAPITAL WORK-IN-PROGRESS As per the Balance Sheet 108,37,62,886 89,75,14,694 349,66,44,427 Less: Opening capital work-in-progress (170,65,04,250) (56,96,03,505) (56,96,03,505) Add: Closing capital work-in-progress 164,01,15,365 53,04,58,784 170,65,04,250 ------------- ------------- ------------- 101,73,74,001 85,83,69,973 463,35,45,172 ============= ============= ============= LONG-TERM INVESTMENTS IN SECURITIES DURING THE PERIOD/YEAR As per the Balance Sheet 44,44,22,821 36,16,97,129 34,11,54,821 Add: Provisions on investments made during the period/year -- -- 15,28,98,608 Less: Non-cash investment on transfer of intellectual property rights (refer to note 2 below) -- (8,93,40,000) (8,93,40,000) ------------- ------------- ------------- 44,44,22,821 27,23,57,129 40,47,13,429 Less: Opening balance considered (34,11,54,821) (13,83,48,469) (13,83,48,469) ------------- ------------- ------------- 10,32,68,000 13,40,08,660 26,63,64,960 ============= ============= ============= CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD/YEAR As per the Balance Sheet 446,28,93,265 426,00,41,918 385,06,10,285 Add: Deposits with financial institutions and body corporate, included herein 184,22,33,208 45,93,29,884 192,67,52,157 ------------- ------------- ------------- 630,51,26,473 471,93,71,802 577,73,62,442 ============= ============= =============
NOTES ON THE STATEMENT OF CASH FLOWS 1. Cash flows are reported using the indirect method, whereby profit after 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. 2. 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. 20 21 Pro forma profit and loss account (un-audited) -------------------------------------------------------------------------------- The company intends to reformat its Indian GAAP income statement following the functional classification methodology. The company believes that this will enable a more meaningful analysis and comparison of revenues, costs and margins as well as facilitate a better understanding of its business by the financial community. The pro forma un-audited profit and loss account prepared in accordance with the proposed format along with the current reporting format is provided in this section for the current quarter. Commencing next quarter, the Company intends to report its income statement in the proposed format. The change in the ratio analysis, in keeping with the proposed format of the profit and loss account is also attached. in Rs. in Rs. ------------------------------------------------------------ ---------------------------------------------------------- PROPOSED FORMAT CURRENT FORMAT ------------------------------------------------------------ ---------------------------------------------------------- Profit and loss account for the quarter ended June 30, 2001 INCOME INCOME Software development services and products Software development services and products Overseas 596,30,21,488 Overseas 596,30,21,488 Domestic 16,21,65,861 Domestic 16,21,65,861 Other income 13,49,39,605 ------------------------------------------------------------ ---------------------------------------------------------- 612,51,87,349 626,01,26,954 ------------------------------------------------------------ ---------------------------------------------------------- SOFTWARE DEVELOPMENT EXPENSES 285,56,14,122 ------------------------------------------------------------ ---------------------------------------------------------- GROSS PROFIT 326,95,73,227 SELLING, GENERAL AND ADMINISTRATION EXPENSES EXPENDITURE Selling and marketing expenses 27,65,03,540 Software development expenses 318,32,88,293 General and administration expenses 58,79,35,341 Administration and other expenses 53,67,64,710 ------------------------------------------------------------ ---------------------------------------------------------- 86,44,38,881 372,00,53,003 OPERATING PROFIT 240,51,34,346 Operating profit (PBIDT) 254,00,73,951 Interest - Interest - Depreciation 35,48,03,492 Depreciation 35,48,03,492 ------------------------------------------------------------ ---------------------------------------------------------- Operating profit after depreciation and interest 205,03,30,854 Other income 13,49,39,605 ------------------------------------------------------------ ---------------------------------------------------------- PROFIT BEFORE TAX 218,52,70,459 Profit before tax 218,52,70,459 Provision for taxation 28,50,00,000 Provision for taxation 28,50,00,000 ------------------------------------------------------------ ---------------------------------------------------------- NET PROFIT AFTER TAX 190,02,70,459 Net profit after tax 190,02,70,459 ------------------------------------------------------------ ---------------------------------------------------------- AMOUNT AVAILABLE FOR APPROPRIATION 190,02,70,459 AMOUNT AVAILABLE FOR APPROPRIATION 190,02,70,459 ------------------------------------------------------------ ---------------------------------------------------------- Dividend Dividend Interim - Interim - Final - Final - Dividend tax - Dividend Tax - Balance in Profit and Loss account 190,02,70,459 Balance in Profit and Loss account 190,02,70,459 ------------------------------------------------------------ ---------------------------------------------------------- 190,02,70,459 190,02,70,459 ============================================================ ========================================================== EARNINGS PER SHARE EARNINGS PER SHARE (Equity shares, par value Rs.5 each) (Equity shares, par value Rs.5 each) Basic 28.72 Basic 28.72 Diluted 28.59 Diluted 28.59 Number of shares used in computing earnings per share Number of shares used in computing earnings per share Basic 6,61,59,038 Basic 6,61,59,038 Diluted 6,64,65,149 Diluted 6,64,65,149 ------------------------------------------------------------ ----------------------------------------------------------
Reconciliation of profit and loss account items Software development expenses reported under current format 318,32,88,293 Less: Expenses reported under Selling and marketing, and general and administration expenses under proposed format Salaries and bonus including overseas staff expenses 26,71,70,368 Staff welfare 11,63,485 Contribution to provident and other funds 85,98,012 Foreign travel expenses 5,03,50,879 Other expenses 3,91,427 ------------------------------------------------------------------------------------------------------------------------ 32,76,74,171 Software development expenses reported under proposed format 285,56,14,122 ------------------------------------------------------------------------------------------------------------------------ Administration expenses reported under current format As reported under current format 53,67,64,710 Add: Expenses reported under software development expenses in current format 32,76,74,171 ------------------------------------------------------------------------------------------------------------------------ Selling, general and administration expenses reported under proposed format 86,44,38,881 ------------------------------------------------------------------------------------------------------------------------
Note: Under the current reporting format, aggregate employee costs and other costs are reported under software development expenses while under the proposed format, employee costs and other costs are reported under the respective functional heads namely software development expenses, selling and marketing, and general and administration expenses. 22 Pro forma ratio analysis -------------------------------------------------------------------------------- This section provides certain key operating ratios both under the current format and the proposed format. --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------ PROPOSED FORMAT CURRENT FORMAT ------------------------------------------------------------------------------------------------------------------------ Ratios - Financial performance Export revenue/ total revenue (%) 97.35 Export revenue/ total revenue (%) 95.25 Domestic revenue/ total revenue (%) 2.65 Domestic revenue/ total revenue (%) 2.59 Software development expenses/ total revenue (%) 46.62 Operating expenses/ total revenue (%) 59.42 Gross profit/ total revenue (%) 53.38 Selling and marketing expenses / total revenue (%) 4.51 General and administration expenses/ total revenue (%) 9.60 Administration expenses/ total revenue (%) 8.57 Employee costs/ total revenue (%) 42.47 Employee costs/ total revenue (%) 41.56 Operating profit / total revenue (%) 39.27 EBIDTA/ total revenue (%) 40.58 Depreciation/ total revenue (%) 5.79 Depreciation/ total revenue (%) 5.67 Other income/ total revenue (%) 2.20 Other income/ total revenue (%) 2.16 Profit before tax/ total revenue (%) 35.68 Profit before tax/ total revenue (%) 34.91 Tax/total revenue (%) 4.65 Tax/total revenue (%) 4.55 Tax/ PBT(%) 13.04 Tax/ PBT(%) 13.04 PAT from ordinary activities/ total revenue (%) 31.02 PAT from ordinary activities/ total revenue (%) 30.36 PAT from ordinary activities/ PAT from ordinary activities/ average net worth (%) (LTM) 54.15 average net worth (%) (LTM) 54.15 ROCE (PBIT/average capital employed) (%) (LTM) 61.00 ROCE (PBIT/average capital employed) (%) (LTM) 61.00 Ratios - year on year growth rates* Export revenue (%) 70 Export revenue (%) 70 Total revenue (%) 72 Total revenue (%) 69 Software development expenses (%) 67 Operating expenses (%) 71 Gross profit (%) 77 Selling and marketing expenses (%) 54 General and administration expenses (%) 102 Operating profit (%) 75 Operating profit (%) 66 Net profit from ordinary activities (%) 57 Net profit from ordinary activities (%) 57 Ratios - sequential growth rates** Export revenue (%) 8 Export revenue (%) 8 Total revenue (%) 9 Total revenue (%) 9 Software development expenses (%) 16 Operating expenses (%) 12 Gross profit (%) 3 Selling and marketing expenses (%) (8) General and administration expenses (%) 10 Operating profit (%) 3 Operating profit (%) 5 Net profit from ordinary activities (%) 5 Net profit from ordinary activities (%) 5 ------------------------------------------------------------------------------------------------------------------------
LTM - Last Twelve Months * Denotes growth compared with figures of the corresponding period in the previous year. ** Denotes growth compared with figures of the immediate preceding quarter. 23 At a glance - US GAAP
US $ millions, except as otherwise stated ----------------------------------------------------------------------------------------------------- Quarter ended June 30, Year ended March 31, 2001 2000 2001 -------- --------- ---------- For the period Revenues 130.53 80.26 413.85 Operating income 42.44 26.41 137.51 Net income 39.24 26.83 131.95 Operating income as a percentage of total revenues 32.51% 32.90% 33.23% Net income as a percentage of total revenues 30.06% 33.43% 31.88% Basic earnings per share $0.60 $0.41 $2.01 Cash dividend per equity share NA NA $0.14 Capital investments 20.56 18.15 96.78 At the end of the period Total assets 372.38 247.03 342.35 Property, plant and equipment - net 132.77 61.70 119.77 Cash and cash equivalents 134.18 105.76 124.08 Working capital 184.09 139.12 176.18 Total debt -- -- -- Stockholders' equity 337.91 216.67 311.79 Common stock 8.59 8.59 8.59 Market capitalization 5,086.31 12,315.06 5,783.15 -------- --------- --------
Note: Market capitalization is calculated by considering the Indian market price for the shares outstanding at the period / year end.
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- REVENUES (US $ IN MILLIONS) 413.85 80.26 130.53
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- OPERATING INCOME (US $ IN MILLIONS) 137.51 26.41 42.44
YEAR ENDED QUARTER ENDED QUARTER ENDED MARCH 31, 2001 JUNE 30, 2000 JUNE 30, 2001 -------------- ------------- ------------- NET INCOME (US $ IN MILLIONS) 131.95 26.83 39.24
23 24 FORM 6K (From Page 24 to 58) 25 Shareholder information -------------------------------------------------------------------------------- 1. Listing on stock exchanges Bangalore Stock Exchange Ltd. (BgSE) in India at Stock Exchange Towers, No. 51, 1st Cross, J. C. Road, Bangalore - 560 027, India Tel.: +91-80-299 5234, Fax: +91-80-299 5242 The Stock Exchange, Mumbai (BSE) Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001, India. Tel.: +91-22-265 5656 / 265 0525, Fax: +91-22-272 2037 National Stock Exchange of India Ltd. (NSE) Trade World, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India. Tel.: +91-22-659 8235 / 36, Fax: +91-22-659 8237 / 38 2. Listing fees Paid for all the above stock exchanges for 2001- 2002 3. Listing on stock NASDAQ National Market in the United States exchanges outside India 33 Whitehall Street, New York, NY-1004-4087 Tel.: +1-212-709-2400, Fax: +1-212-709-2496 4. Registered office Electronics City, Hosur Road, Bangalore - 561 229, India. Tel.: +91-80-852 0261, Fax: +91-80-852 0362 Homepage: www.infy.com 5. 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 June 30, 2001 are:
BSE NSE BgSE --------------------------------------------------------------------------------------------------------- High Low Volume High Low Volume High Low Volume Rs. Rs. Nos. Rs. Rs. Nos. Rs. Rs. Nos. ------------------------------------------------------------------------------------------------------------------------- April, 2001 4,226 2,721 73,13,583 4,228 2,701 1,05,60,270 4,250 2,730 10,912 May 4,334 3,601 68,63,941 4,328 3,607 1,06,32,274 4,300 3,680 5,221 June 3,969 3,135 74,11,429 3,995 3,138 1,26,84,001 3,950 3,160 4,697 ------------------------------------------------------------------------------------------------------------------------- Total 2,15,88,953 3,38,76,545 20,830 % of volume traded to average shares outstanding 33.70%(*) 52.87%(*) 0.03%(*) -------------------------------------------------------------------------------------------------------------------------
(*)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. 6. Par value of equity shares Rs. 5 each fully paid-up 7. 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: ullur@karvy.com
8. 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 June 30, 2001 was 9,800 (quarter ended June 30, 2000 - 6,636). 100.00% of transfers (quarter ended June 30, 2000 - 72.88%) were completed within 10 days. 59 26
------------------------------------------------------------------------------------------------------------------- Quarter ended June 30, 2001 2000 ------------------------------------------------------------------------------------------------------------------- Transfer No. of No. of No. of No. of period transferees (folios) shares % transferees (folios) shares % in days New Existing New Existing ------------------------------------------------------------------------------------------------------------------- 1 - 10 13 -- 9,800 100.00 7 3 4,836 72.88 11- 15 -- -- -- -- 1 -- 400 6.02 16- 20 -- -- -- -- 3 -- 1,400 21.10 21 and above -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------- 13 -- 9,800 100.00 11 3 6,636 100.00 -------------------------------------------------------------------------------------------------------------------
9. Investors' services - complaints received during
--------------------------------------------------------------------------------------------------------------- Quarter ended June 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 1 1 1 1 3. Letters from Stock Exchanges, SEBI, etc. 2 2 -- -- 4. Non-receipt of dividend 22 22 10 10 --------------------------------------------------------------------------------------------------------------- 26 26 11 11 ---------------------------------------------------------------------------------------------------------------
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 June 30, 2001 except in cases that are constrained by disputes or legal impediments. 10. 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. 11. Distribution of shareholding as on June 30
-------------------------------------------------------------------------------------------------------------------------------- 2001 2000 -------------------------------------------------------------------------------------------------------------------------------- No. of equity No. of % of No. of % of No. of % of No. of % of shares held share- share- shares share- share- share- shares share- holders holders holding holders holders holding -------------------------------------------------------------------------------------------------------------------------------- 1 - 100 82,025 88.01 10,18,502 1.59 52,308 81.51 7,45,648 1.16 101 - 200 2,620 2.81 4,18,175 0.65 2,532 3.94 4,31,292 0.67 201 - 500 2,925 3.14 10,05,697 1.57 2,996 4.67 10,70,430 1.67 501 - 1000 2,353 2.52 17,20,005 2.69 2,718 4.23 20,25,170 3.16 1001 - 5000 2,578 2.77 52,93,875 8.26 2,930 4.57 61,57,016 9.61 5001 - 10000 278 0.30 20,02,763 3.13 305 0.48 21,95,063 3.43 10001 and above 417 0.45 5,26,10,983 82.11 384 0.60 5,07,28,433 79.18 Shares in transit in NSDL -- -- -- -- -- -- 7,15,748 1.12 -------------------------------------------------------------------------------------------------------------------------------- 93,196 100.00 6,40,70,000 100.00 64,173 100.00 6,40,68,800 100.00 Equity shares underlying 1 20,90,717 1 20,82,567 American Depositary Shares* -------------------------------------------------------------------------------------------------------------------------------- Total 93,197 6,61,60,717 64,174 6,61,51,367 --------------------------------------------------------------------------------------------------------------------------------
* Held by beneficial owners outside India. 60 27 12. Categories of shareholders as on June 30
----------------------------------------------------------------------------- -------------------------------------------- 2001 2000 ----------------------------------------------------------------------------- -------------------------------------------- Category No. of Voting No. of shares No. of Voting No. of shares shareholders strength(%) held shareholders strength(%) held ----------------------------------------------------------------------------- -------------------------------------------- Individuals 88,652 21.84 1,44,47,652 60,592 25.50 1,68,66,371 Companies 3,221 1.17 7,74,645 2,653 1.84 12,18,249 FIIs 383 32.78 2,16,90,844 316 25.26 1,67,13,447 OCBs and NRIs 721 0.68 4,48,119 426 0.73 4,82,811 Founders and their families 23 28.98 1,91,75,110 23 29.30 1,93,80,560 Mutual Funds, Banks, FIs 196 11.39 75,33,630 163 13.14 86,91,614 Shares in transit in NSDL -- -- -- -- 1.08 7,15,748 Equity shares underlying 1 3.16 20,90,717 1 3.15 20,82,567 American Depositary Shares* ----------------------------------------------------------------------------- -------------------------------------------- Total 93,197 100.00 6,61,60,717 64,174 100.00 6,61,51,367 ----------------------------------------------------------------------------- --------------------------------------------
* Held by beneficial owners outside India. 13. Financial calendar (tentative and subject to change) Financial reporting for the second quarter ending September 30, 2001 October 10, 2001 Interim dividend payment (if any) November 12, 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
14. 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 1518, 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
15. 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)
16. 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 June 30, 2001 are:
---------------------------------------------------------------------------------------------- High Low Volume ---------------------------------------------------------------------------------------------- $ Rs. $ Rs. Nos. ---------------------------------------------------------------------------------------------- April, 2001 73.95 3,464 50.65 2,372 50,97,100 May 81.50 3,826 64.35 3,021 22,49,900 June 74.60 3,505 55.69 2,617 14,19,300 ---------------------------------------------------------------------------------------------- Total 87,66,300 ---------------------------------------------------------------------------------------------- % of volume traded to total float 209.65%*
* 2 ADS = 1 equity share $ have been converted into Indian rupees at the monthly closing rates 61 28 e. Premium of American Depositary Shares over the shares traded on the Indian stock exchanges The ADS price quoted below is in Indian rupees and has been converted at the monthly closing rates. ADS PREMIUM
06/04 12/04 20/04 27/04 04/05 11/05 18/05 25/05 01/06 08/06 15/06 22/06 29/06 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ADS PRICE* 5,640 5,293 5,902 6,209 6,810 6,596 6,994 6,783 6,306 6,931 6,167 5,911 6,109 NSE SHARE PRICE 4,029 2,861 3,819 3,248 3,822 3,888 3,949 4,175 3,756 3,943 3,405 3,432 3,749 % PREMIUM 39.99 85.01 54.54 91.16 78.18 69.65 77.11 62.47 67.89 75.78 81.12 72.23 62.95
* 2 ADS = 1 equity share f. 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 g. Name and address of the Deutsche Bank A.G. depositary bank Corporate Trust and Agency Services 4 Albany Street New York, NY 10006, USA. Tel.: +1-212-250-8500, Fax: +1-212-250-5644. Corporate Trust and Agency Services Deutsche Bank A.G. 1st Floor, Kodak House, 222, Dr. D. N. Road, Fort, Mumbai - 400 001, India. Tel.: +91-22-207 3262, Fax: +91-22-207 9614 h. Name and address of the ICICI Limited custodian in India ICICI Towers, Bandra Kurla Complex Mumbai - 400 051, India. Tel.: +91-22-653 1414, Fax: +91-22-653 1164/65. 62 29 Ratio analysis as per Indian GAAP --------------------------------------------------------------------------------
Quarter ended Year ended June 30, 2001 June 30, 2000 March 31, 2001 ------------- ------------- -------------- Ratios - Financial performance Export revenue / total revenue(%) 95.25 94.72 95.62 Domestic revenue / total revenue(%) 2.59 1.21 1.35 Other income / total revenue(%) 2.16 4.08 3.03 Employee costs / total revenue(%) 41.56 38.47 36.62 Administration expenses / total revenue(%) 8.57 7.69 9.06 Operating expenses / total revenue(%) 59.42 58.79 58.73 Depreciation / total revenue(%) 5.67 4.79 5.76 Tax / total revenue(%) 4.55 3.70 3.71 Tax / PBT(%) 13.04 10.15 10.45 EBIDTA / total revenue(%) 40.58 41.21 41.27 PAT from ordinary activities / total revenue(%) 30.36 32.73 31.80 PAT from ordinary activities / average net worth(%)(LTM) 54.15 43.51 56.08 ROCE (PBIT/Average capital employed)(%)(LTM) 61.00 49.22 62.62 Return on invested capital(%)(LTM) 91.69 97.28 105.67 Capital output ratio(LTM) 1.69 1.34 1.71 Invested capital output ratio(LTM) 2.97 3.16 3.34 Ratios - Balance sheet Debt-Equity ratio -- -- -- Debtors turnover(Days)* 46 59 58 Current Ratio 3.91 4.21 3.49 Cash and cash equivalents / total assets(%) 39.52 49.15 41.57 Cash and cash equivalents / total revenue(%)(LTM) 28.46 42.59 29.48 Depreciation / average gross block(%)(LTM) 23.49 21.86 24.67 Technology investment / total revenue(%)(LTM) 6.98 6.44 7.43 Ratios - Growth** Export revenue(%) 70 108 115 Total revenue(%) 69 101 113 Operating expenses(%) 71 105 112 Operating profit(%) 66 96 114 Net profit from ordinary activities(%) 57 100 118 Per-share data (Period End) Basic earnings per share from ordinary activities(Rs.) 28.72 18.34 94.23 Basic earnings per share (including extraordinary items)(Rs.) 28.72 19.17 95.06 Cash earnings per share from ordinary activities(Rs.) 34.08 21.02 111.29 Cash earnings per share (including extraordinary items)(Rs.) 34.08 21.85 112.12 Book value(Rs.) 241.17 145.15 210.05 Price / earning(LTM) 34.54 158.60 43.19 Price / cash earnings(LTM) 29.05 134.65 36.57 Price / book value 14.98 57.25 19.38 EPS growth(%) 56.60 100.22 117.97 PE / EPS growth 0.61 1.58 0.37 Dividend per share(Rs.) -- -- 10.00
LTM - Last twelve months * Annualized. ** Denotes growth compared with figures of the corresponding period in the previous year. 63 30 Infosys Technologies Limited -------------------------------------------------------------------------------- United States UK Hong Kong 16F Cheung Kong Centre Addison Croydon 2 Queen's Road Central 15305 Dallas Parkway P.O. Box 1221 Central, Hong Kong Suite 210 11th Floor Emerald House Tel.: 852 22972806 Addison, TX 75001 7/15 Lansdowne Road Fax: 852 22970066 Tel.: (972) 770-0450 Croydon, CR0 2BX Fax: (972) 770-0490 Tel.: 44-20-8774 3300 Fax: 44-20-8686 6631 Japan Bellevue 10900 NE 4th St. Argentina Tokyo #2300 Bellevue 2F, Kearny Place Akasaka, WA 98004 Buenos Aires 2-21-25, Akasaka, Tel.: (425) 990 1028 Grupo ASSA Building Minato-Ku, Tokyo 107-0052 Fax: (425) 990 1029 2nd Floor, Elvira Rawson de Tel.: 81 3-5545-3251 Dellepiane 150, Dique 1 Fax: 81 3-5545-3252 Fremont Puerto Madero, C1107BCA 34760 Campus Drive Buenos Aires Singapore Fremont 30, Raffles Place, CA 94555 Australia 23-00, Caltex House Tel.: (510) 742 3000 Singapore 048622 Fax: (510) 742 3090 Melbourne Tel.: 65 233 6820 Level 7, 505, St Kilda Road Fax: 65 233 6905 Marietta Melbourne, Victoria 3004 1950 Spectrum Circle Tel.: 61 3 9868 1607 Sweden #400 Marietta Fax: 61 3 9868 1652 GA 30067 Stockholm Tel.: (770) 857 4428 Sydney Stureplan 4C, 4tr Fax: (770) 857 2258 Level 4, 90, Mount Street 114 35, Stockholm North Sydney, NSW 2060 Tel.: 46-846 31112 Newport Beach Tel.: 61 2 9954 0036 Fax: 46-846 31114 4590 MacArthur Fax: 61 2 8904 1344 Suite 500 UAE Newport Beach Belgium P. O. Box 8230 CA 92660 Sharjah Airport Intl. Tel.: (949) 475 0196 Brussels Free Zone Sharjah Fax: (949) 475 0198 Dreve Richelle 161 Tel.: 971 6557 0000 Building N 1410 Waterloo Fax: 971 6557 1010 Quincy Brussels Two Adams Place Tel.: 322-352-8743 Quincy, MA 02169 Fax: 322-352-8889 Tel.: (781) 356 3100 Fax: (781) 356 3150 Canada Troy Toronto 100 Liberty Center 5140 Yonge Street #200 West Big Beaver Suite 1400, Toronto Troy, MI 48084 Ontario, M2N 6L7 Tel.: (248) 524 0320 Tel.: (416) 224 7400 Fax: (248) 524 0321 Fax: (416) 224 7449 Phoenix France 10851, N Black Canyon Highway, #830 Paris Phoenix, AZ 85029 12, AV DU Centre Tel.: (602) 944 4855 Faubourg de l'Arche 92419 Fax: (602) 944 4879 Courbevoie Cedex Tel.: 33 1 4691 8454 Lisle Fax: 33 1 4691 8800 2300 Cabot Dr Suite 250 Germany Lisle, IL 60532 Tel.: (630) 482 5000 Frankfurt Fax: (630) 505 9144 TOPAS 2, Mergenthalerallee 79-81, 65760, Eschborn Berkeley Heights Frankfurt Two Oak Way Tel.: 49 6196 9202115 Fourth Floor, South Wing Fax: 49 6196 9202320 Berkeley Heights, NJ 07922 Tel.: (908) 286 3101 Fax: (908) 286 3125
India Konark Mohali (Chandigarh) Plot No. E/4 B 100, Phase VIII Bangalore Infocity, Chandaka Industrial Area, SAS Nagar Electronics City Bhubaneswar-751 014 Mohali-160 059 Hosur Road Tel.: (0674) 320001 Tel.: (0172) 254191/92/94 Bangalore-561 229 Fax: (0674) 320100 Fax: (0172) 254193 Tel.: (080) 8520261 Fax: (080) 8520362 Chennai Mumbai No. 138, No. 85, Mittal Towers 'C' Reddy Building Old Mahabalipuram Road 8th Floor, Nariman Point K-310, 1st Main Sholinganallur Mumbai-400 021 5th Block, Koramangala Chennai-600 119 Tel.: (022) 2882911-14 Bangalore-560 095 Tel.: (044) 4500345 Fax: (022) 2846489 Tel.: (080) 5530392 Fax: (080) 5530391 Hyderabad 1Q3 A1, 1st Floor, Mysore Cyber Towers SJCE-STEP Pavithra Complex HI-TEC City, Madhapur Sree Jayachamarajendra #1, 27th Main, 2nd Cross Hyderabad-500 033 College of Engineering, 1st Stage, BTM Layout Tel.: (040) 3100242/44-48 Science and Technology Bangalore-560 068 Fax: (040) 3100243 Entrepreneurs Park Tel.: (080) 6681755 Mysore-570 006 Fax: (080) 6680181 Kolkata Tel.: (0821) 500001/06/08 C/61, Bapuji Nagar Fax: (0821) 511614 Infosys Towers Regent Estate P.O. No. 27, Bannerghatta Road Kolkata-92 New Delhi 3rd Phase, J. P. Nagar Pager No. 9628-304450 K30, Green Park Main Bangalore-560 076 Behind Green Park Market Tel.: (080) 6588668 Mangalore New Delhi-110 066 Fax: (080) 6588676 Kottara Cross Tel.: (011) 6514829-30 Kuloor Ferry Road Fax: (011) 6853366 Bhubaneswar Mangalore-575 006 Plot No. N-1/70, Nayapalli Tel.: (0824) 451485-88 Pune Adjoining Planetarium on Fax: (0824) 451504 Plot No. 1 NH5, Post RRL Infotech Park MIDC Bhubaneswar-751 013 Hinjewadi, Taluka Mulshi Tel.: (0674) 584068-71 Pune-411 027 Fax: (0674) 583991 Tel.: (02139) 32801-03 Fax: (02139) 32832
6