Infosys Ltd. — Annual Report 2014

Apr 14, 2014

Infosys Limited CIN : L85110KA1981PLC013115

Regd. Office: Electronics City, Hosur Road, Bangalore 560 100, India.

Website: www.infosys.com ; email: investors@infosys.com ; T: 91 80 2852 0261 ; F: 91 80 2852 0362

Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and year ended March 31, 2014 prepared in compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

(in ` crore, except share and per equity share data)

Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
RevenuesCost of salesGross profitSelling and marketing expensesAdministrative expensesOperating profitOther income, netProfit before income taxesIncome tax expenseNet profitPaid-up equity share capital (par value5/- each, fully paid)<br>Share premium, retained earnings and other components of equity*<br>**Earnings per share (par value**5/- each)BasicDiluted**Total Public Shareholding ****Number of sharesPercentage of shareholdingPromoters and Promoter Group ShareholdingPledged / EncumberedNumber of sharesPercentage of shares (as a % of the total shareholding of promoter andpromoter group)Percentage of shares (as a % of the total share capital of the Company)Non-encumberedNumber of sharesPercentage of shares (as a % of the total shareholding of promoter andpromoter group)Percentage of shares (as a % of the total share capital of the Company)	12,8758,1174,7586408373,2818514,1321,1402,99228639,51152.3652.3639,02,57,42867.96---9,15,08,078100.0015.94	13,0268,3214,7056448023,2597313,9901,1152,87528639,51150.3250.3239,26,38,75568.37 - - -9,15,08,078100.0015.94	10,4546,8023,6525186722,4626743,1367422,39428633,17541.8941.8941,12,67,87171.62 - - -9,20,85,078100.0016.04	50,13332,14117,9922,6253,32612,0412,66914,7104,06210,64828639,511 186.35 186.3539,02,57,42867.96 - - -9,15,08,078100.0015.94	40,35225,28015,0722,0342,60910,4292,35912,7883,3679,42128633,175164.87164.8741,12,67,87171.62 - - -9,20,85,078100.0016.04

• Represents the previous accounting year balance as required under Clause 41 of the Listing Agreement.

** Total Public Shareholding as defined under Clause 40A of the Listing Agreement excludes shares held by founders and American Depository Receipt Holders.

1. The audited consolidated financial statements for the quarter and year ended March 31, 2014 have been taken on record by the Board of Directors at its meeting held on April 15, 2014. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

2 . The Board appointed Ms Carol M Browner as an Additional Director of the Company. Her appointment shall be effective on the date Ms. Browner receives her Director Identification Number from the Ministry of Corporate Affairs, Government of India.

3. During the quarter ended March 31, 2014, the Company incorporated a subsidiary company, Edgeverve Systems Limited.

4. Information on dividends for the quarter and year ended March 31, 2014

The Board of Directors recommended a final dividend of `43 /- per equity share for the financial year ended March 31, 2014. The payment is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company to be held on June 14, 2014. The book closure date for the purpose of the Annual General Meeting and payment of the final dividend is May 31, 2014 to June 14, 2014 (both days inclusive).

	(in`)	(in`)	(in`)	(in`)	(in`)
Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
Dividend per share (par value`5/- each)Interim dividendFinal dividendTotal dividend	-43.0043.00	- - -	-27.0027.00	20.0043.0063.00	15.0027.0042.00

The Company’s current policy is to pay dividends up to 30% of post-tax profits. The Board has decided to increase the dividend pay-out ratio to up to 40% of post-tax profits effective fiscal 2014.

5. Other information (Consolidated - Audited)

5. Other information (Consolidated - Audited)
	(in`crore)
Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
Staff costsItems exceeding 10% of aggregate expenditureDetails of other income:Interest income on deposits and certificates of depositIncome from available-for-sale financial assetsMiscellaneous income, netGains/(losses) on foreign currencyTotal	7,271-5825828183851	7,346-5376212120731	6,065-490547123674	28,834-2,156224592302,669	22,566-1,792230792582,359
6. Audited financial results of Infosys Limited (Standalone Information)	(in`crore)
Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
RevenuesProfit before exceptional items and taxProfit before taxProfit for the period	11,3663,8873,8872,883	11,5343,8313,8312,735	9,3293,0223,0222,305	44,34114,00214,00210,194	36,76512,27412,3579,116
7. Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended March 31, 2014Note: The audited results of Infosys Limited for the above mentioned periods are available on our website www.infosys.com_. The information above has been extracted_from the audited financial statements as stated.
Nature of complaints received		Opening balance	Additions	Disposal	Closingbalance
Non-receipt of dividend / Annual Report related		-	95	95	-

8. Consolidated statement of assets and liabilities (IFRS Consolidated Audited)

8. Consolidated statement of assets and liabilities (IFRS Consolidated Audited)
	(in`crore)
Particulars	As at
	March 31,2014	March 31,2013
EQUITY AND LIABILITIESShareholders’ fundsShare capitalReserves and surplusSub-total-Shareholders' fundsMinority interestsNon-current liabilitiesDeferred tax liabilitiesOther long-term liabilitiesSub-total-Non-current liabilitiesCurrent liabilitiesTrade payablesOther current liabilitiesShort-term provisionsSub-total-Current liabilitiesTOTAL - EQUITY AND LIABILITIESASSETSNon-current assetsFixed assetsGoodwill on consolidationNon-current investmentsDeferred tax assetsOther non-current assetsSub-total-Non-current assetsCurrent assetsCurrent investmentsTrade receivablesCash and cash equivalentsOther current assetsSub-total-Current assetsTOTAL - ASSETS	28647,24447,530-643233871738,5863799,138	28639,51139,797-1191492681895,8842136,286
	57,055	46,351
	8,2292,1571,2526561,74214,0363,0568,35125,9505,66243,019	6,8361,9763945031,32911,0381,7397,08321,8324,65935,313
	57,055	46,351

The above disclosure is in compliance with Clause 41(V)(h) and Annexure IX of the Listing Agreement. The disclosure is an extract of the audited IFRS Consolidated Balance Sheet as at March 31, 2014.

9. Segment reporting (IFRS Consolidated Audited)

(in ` crore)

				(in`crore)	(in`crore)
Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
Revenue by industry segmentFinancial Services and Insurance (FSI)Manufacturing (MFG)Energy & utilities, Communication and Services (ECS)Retail, Consumer packaged goods and Logistics (RCL)Life Sciences and Healthcare (LSH)Growth Markets (GMU)Total**Less:**Inter-segment revenueNet revenue from operationsSegment profit before tax, depreciation and non-controlling interests:Financial Services and Insurance (FSI)Manufacturing (MFG)Energy & utilities, Communication and Services (ECS)Retail, Consumer packaged goods and Logistics (RCL)Life Sciences and Healthcare (LSH)Growth Markets (GMU)Total**Less:**Other unallocable expenditure**Add:**Unallocable other incomeProfit before tax and non-controlling interests	3,7492,8092,0752,1328441,26612,875-12,8751,1897056336272052843,6433628514,132	3,8142,8082,0502,2058971,25213,026-13,0261,1546715756492043683,6213627313,990	3,1602,1861,6561,6846971,07110,454-10,4549754584474181732992,7703086743,136	14,69810,8537,9328,3463,3994,90550,133-50,1334,3492,4522,2742,2217491,37313,4181,3772,66914,710	12,2408,3526,4076,8452,3634,14540,352-40,3523,8052,1301,7552,0586431,17111,5621,1332,35912,788

Notes on segment information

Business segments

Effective quarter ended March 31, 2014, the Company reorganized its segments consequent to which the business segments of the company are as set out above. The previous period figures, extracted from the audited consolidated financial statements, have been presented after incorporating necessary reclassification adjustments pursuant to changes in the reportable segments.

Segmental capital employed

Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

By order of the Board for Infosys Limited

Bangalore, India April 15, 2014

S. D. Shibulal

Chief Executive Officer and Managing Director

The Board has also taken on record the unaudited consolidated results of Infosys Limited and its subsidiaries for the three months and year ended March 31, 2014, prepared as per International Financial Reporting Standards (IFRS). A summary of the financial statements is as follows:

	(in US$ million, except per equity share data)	(in US$ million, except per equity share data)	(in US$ million, except per equity share data)	(in US$ million, except per equity share data)	(in US$ million, except per equity share data)
Particulars	Quarter endedMarch 31,	Quarter endedDecember 31,	Quarter endedMarch 31,	Year endedMarch 31,
	2014	2013	2013	2014	2013
RevenuesCost of salesGross profitNet profitEarnings per Equity ShareBasicDilutedTotal assetsCash and cash equivalents including available-for-sale financial assets(current)and certificates of deposit	2,0921,3187744870.850.859,5224,841	2,1001,3417594630.810.818,7334,236	1,9381,2616774440.780.788,5394,341	8,2495,2922,9571,7513.063.069,5224,841	7,3984,6372,7611,7253.023.028,5394,341

Certain statements in this advertisement concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2013 and on Form 6-K for the quarter ended December 31, 2013. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this advertisement is April 15, 2014, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.