TO ALL STOCK EXCHANGES

BSE LIMITED NATIONAL STOCK EXCHANGE OF INDIA LIMITED NEW YORK STOCK EXCHANGE

July 14, 2021

Dear Sir, Madam,

Sub: Outcome of Board meeting

This has reference to our letter dated June 14, 2021, regarding the captioned subject. The Board, at their meeting held on July 13 and 14, 2021, transacted the following items of business:

Financial Results

1. Took on record the audited consolidated financial results of the Company and its subsidiaries as per Indian Accounting Standards (INDAS) for the quarter ended June 30, 2021;
1. Took on record the audited standalone financial results of the Company as per INDAS for the quarter ended June 30, 2021; and
1. Took on record the audited financial statements of the Company and its subsidiaries as per INDAS and IFRS for the quarter ended June 30, 2021.

Other matters

Business Transfer – Brilliant Basics

The Board approved the integration of the business of Brilliant Basics group comprising Brilliant Basics holding Ltd and its subsidiary Brilliant Basics Limited with Infosys Limited. The business integration will be made through business transfer agreement with Brilliant Basics Limited to transfer its business including all assets and liabilities to Infosys Limited. The transaction is between a holding company and a subsidiary and therefore is accounted for at carrying values and does not have any impact on the consolidated financial statement. Post business transfer, the two legal entities Brilliant Basics Holding Limited and Brilliant Basics Limited will be liquidated under the applicable laws.

1. As part of periodic review, the Board considered, approved/amended the following policies and charters: -
- Corporate Social Responsibility (CSR) policy
- Nomination and Remuneration policy
- Enterprise Risk Management (ERM) policy
- Corporate Social Responsibility (CSR) Committee charter
- Risk Management Committee charter
- Environmental, Social, and Governance (ESG) Committee charter

The copies of the above charters and policies will be made available on the website of the Company under the following link: https://www.infosys.com/investors/corporate-governance/policies.html

We are enclosing herewith the financial results and press release for your information and record. The same will be made available on the Company's website www.infosys.com.

Yours sincerely, For Infosys Limited

MANIKANTHA AGS Digitally signed by MANIKANTHA AGS

Date: 2021.07.14 16:01:14 +05'30'

A.G.S. Manikantha Company Secretary

42.1%YoYCC Digital growth	16.9% YoY4.8% QoQCC Revenue growth	23.7%Operating Margin	22.6% YoYIncrease in EPS(` terms)	$2.6bnLarge deal signings
-----------------------------------	--------------------------------------------	---------------------------	-------------------------------------------	------------------------------------

Revenue Growth- Q1 21

	Reported	CC
QoQ growth (%)	4.7	4.8
YoY growth (%)	21.2	16.9

Revenues by Offering

		Quarter ended ($ mn)	YoY Growth (%)
	June 30, 2021	Mar 31, 2021	June 30, 2020	Reported	CC
Digital	2,040	1,859	1,389	46.9	42.1
Core	1,742	1,754	1,732	0.6	(3.0)
Total	3,782	3,613	3,121	21.2	16.9
Digital Revenues as % of Total Revenues	53.9	51.5	44.5

Revenues by Business Segments

(in %)
		Quarter ended	YoY Growth
	June 30,2021	June 30,Mar 31, 20212020		Reported	CC
Financial services	33.0	33.0	31.5	27.1	22.6
Retail	15.0	14.8	14.3	26.6	22.2
Communication	12.2	12.0	13.4	10.6	4.6
Energy, Utilities, Resources & Services	12.1	12.3	12.8	14.5	10.5
Manufacturing	9.7	9.6	9.5	23.1	18.5
Hi-Tech	8.3	8.1	8.7	15.1	14.8
Life Sciences	6.8	6.8	6.7	23.4	21.2
Others	2.9	3.4	3.1	16.3	10.2
Total	100.0	100.0	100.0	21.2	16.9

Revenues by Client Geography

(in %)
		Quarter ended	YoY Growth
	June 30,2021	Mar 31, 2021	June 30,2020	Reported	CC
North America	61.7	61.6	61.5	21.6	21.1
Europe	24.2	24.4	24.0	21.9	12.2
Rest of the world	11.2	11.0	11.6	16.9	4.9
India	2.9	3.0	2.9	23.1	20.7
Total	100.0	100.0	100.0	21.2	16.9

Client Data

	Quarter ended
	June 30, 2021	Mar 31, 2021	June 30, 2020
Number of Clients
Active	1,659	1,626	1,458
Added during the period (gross)	113	130	110
Number of million dollar clients*
1 Million dollar +	805	779	729
10 Million dollar +	264	252	236
50 Million dollar +	59	59	60
100 Million dollar +	34	32	25
Client contribution to revenues
Top 5 clients	11.3%	10.9%	11.8%
Top 10 clients	18.8%	18.3%	19.3%
Top 25 clients	34.4%	34.2%	34.6%
Days Sales Outstanding	70	71	71

Effort and Utilization - Consolidated IT Services

			(in %)
	Quarter endedJune 30, 2021Mar 31, 2021June 30, 2020

Effort
Onsite	24.1	24.3	28.0
Offshore	75.9	75.7	72.0
Utilization
Including trainees	83.3	82.2	78.2
Excluding trainees	88.5	87.7	81.2

Employee Metrics

			(Nos.)
	Quarter ended
	June 30, 2021	Mar 31, 2021	June 30, 2020
Total employees	2,67,953	2,59,619	2,39,233
S/W professionals	2,53,493	2,45,037	2,25,167
Sales & Support	14,460	14,582	14,066
Voluntary Attrition % (LTM - IT Services)	13.9%	10.9%	15.6%
% of Women Employees	38.8%	38.6%	37.8%
Revenue per Employee - Consolidated (In US $ K)	56.6	55.2	53.5

Cash Flow

			In US $ million
	Quarter ended
	June 30, 2021	Mar 31, 2021	June 30, 2020
Free cash flow (1)	863	799	728
Consolidated cash and investments (2)(3)	5,076	5,288	3,797

In ` crore

		Quarter ended
	June 30, 2021	Mar 31, 2021	June 30, 2020
Free cash flow (1)	6,363	5,824	5,524
Consolidated cash and investments (2)(3)	37,727	38,660	28,674

(1) Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS (Non-IFRS measure)

(2) Consolidated cash and investments comprise of cash and cash equivalents, other receivables towards redemption of mutual funds, current and non-current investments excluding investments in unquoted equity and preference shares and others (Non-IFRS measure)

(3) Cash balances as of Jun 30, 2020 excludes earmarked bank balance for dividend - $536 Million (₹4,046 crore). Payment date for the dividend was July 3, 2020

Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)In US $ million, except per equity share data
Particulars	June 30,2021	June 30,2020	Growth %Q1 22 overQ1 21	Mar 31,2021	Growth %Q1 22 overQ4 21
Revenues	3,782	3,121	21.2	3,613	4.7
Cost of sales	2,509	2,071	21.1	2,357	6.4
Gross Profit	1,273	1,050	21.2	1,256	1.4
Operating Expenses:
Selling and marketing expenses	169	151	11.9	165	2.4
Administrative expenses	208	191	8.9	207	0.5
Total Operating Expenses	377	342	10.2	372	1.3
Operating Profit	896	708	26.5	884	1.2
Operating Margin %	23.7	22.7	1.0	24.5	(0.8)
Other Income, net(1)	77	57	35.1	68	13.2
Profit before income taxes	973	765	27.2	952	2.2
Income tax expense	268	201	33.3	255	5.1
Net Profit (before minority interest)	705	564	25.2	697	1.2
Net Profit (after minority interest)	704	558	26.2	697	1.1
Basic EPS ($)	0.17	0.13	26.1	0.16	1.0
Diluted EPS ($)	0.17	0.13	26.0	0.16	1.0
Dividend Per Share ($)	-	-	-	0.20	-

Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)	In ` crore, except per equity share data
Particulars	June 30,2021	June 30,2020	Growth %Q1 22 overQ1 21	Mar 31,2021	Growth %Q1 22 overQ4 21
Revenues	27,896	23,665	17.9	26,311	6.0
Cost of sales	18,506	15,703	17.9	17,164	7.8
Gross Profit	9,390	7,962	17.9	9,147	2.7
Operating Expenses:
Selling and marketing expenses	1,248	1,146	8.9	1,200	4.0
Administrative expenses	1,539	1,451	6.1	1,507	2.1
Total Operating Expenses	2,787	2,597	7.3	2,707	3.0
Operating Profit	6,603	5,365	23.1	6,440	2.5
Operating Margin %	23.7	22.7	1.0	24.5	(0.8)
Other Income, net(1)	573	427	34.2	495	15.8
Profit before income taxes	7,176	5,792	23.9	6,935	3.5
Income tax expense	1,975	1,520	29.9	1,857	6.4
Net Profit (before minority interest)	5,201	4,272	21.7	5,078	2.4
Net Profit (after minority interest)	5,195	4,233	22.7	5,076	2.3
Basic EPS (`)	12.24	9.98	22.6	11.96	2.3
Diluted EPS (`)	12.21	9.97	22.5	11.94	2.3
Dividend Per Share (`)	-	-	-	15.00	-

(1) Other income includes Finance Cost

Chartered Accountants

Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Opinion

We have audited the accompanying Statement of Consolidated Financial Results of INFOSYS LIMITED (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group") for the quarter ended June 30, 2021, (the "Statement") being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

i. includes the results of the entities as given in the Annexure to this report;
ii. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and
iii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the quarter ended June 30, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SA"s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor's Responsibilities for audit of the consolidated financial results section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the consolidated financial results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Consolidated Financial Results

This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been compiled from the audited interim condensed consolidated financial statements for the quarter ended June 30, 2021. The Company's Board of Directors is responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group in accordance with the

recognition and measurement principles laid down in the Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

The respective Boards of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Company, as aforesaid.

In preparing the consolidated financial results, the respective Boards of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intends to liquidate their respective entities or to cease operations, or have no realistic alternative but to do so.

The respective Boards of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the Financial Information of the entities within the Group to express an opinion on the consolidated financial results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors.

Materiality is the magnitude of misstatements in the consolidated financial results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial results.

We communicate with those charged with governance of the Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

Annexure to Auditor's Report

List of Entities:

1. Infosys Technologies (China) Co. Limited
1. Infosys Technologies S. de R. L. de C. V.
1. Infosys Technologies (Sweden) AB.
1. Infosys Technologies (Shanghai) Company Limited
1. Infosys Nova Holdings LLC.
1. EdgeVerve Systems Limited
1. Infosys Austria GmbH
1. Skava Systems Private Limited (under liquidation)
1. Kallidus Inc. (liquidated effective March 9, 2021)
1. Infosys Chile SpA
1. Infosys Arabia Limited
1. Infosys Consulting Ltda.
1. Infosys CIS LLC (liquidated effective January 28, 2021)
1. Infosys Luxembourg SARL
1. Infosys Americas Inc.
1. Infosys Public Services, Inc.
1. Infosys Canada Public Services Inc.
1. Infosys BPM Limited
1. Infosys (Czech Republic) Limited s.r.o.
1. Infosys Poland Sp Z.o.o
1. Infosys McCamish Systems LLC
1. Portland Group Pty Ltd
1. Infosys BPO Americas LLC.
1. Infosys Consulting Holding AG
1. Infosys Management Consulting Pty Limited
1. Infosys Consulting AG
1. Infosys Consulting GmbH
1. Infosys Consulting S.R.L, Romania
1. Infosys Consulting SAS
1. Infosys Consulting s.r.o. (under liquidation)
1. Infosys Consulting (Shanghai) Co., Ltd. (under liquidation)
1. Infy Consulting Company Limited
1. Infy Consulting B.V.
1. Infosys Consulting Sp. Z.o.o (merged with Infosys Poland Sp Z.o.o effective October 21, 2020)
1. Lodestone Management Consultants Portugal, Unipessoal, Lda. (liquidated effective November 19, 2020)
1. Infosys Consulting S.R.L, Argentina
1. Infosys Consulting (Belgium) NV
1. Panaya Inc.
1. Panaya GmbH
1. Panaya Limited.
1. Brilliant Basics Holdings Limited
1. Brilliant Basics Limited
1. Brilliant Basics (MENA) DMCC (liquidated effective July 17, 2020)
1. Infosys Consulting Pte Ltd.
1. Infosys Middle East FZ LLC
1. Fluido Oy
1. Fluido Sweden AB (Extero)
1. Fluido Norway A/S
1. Fluido Denmark A/S
1. Fluido Slovakia s.r.o
1. Fluido Newco AB (merged with Fluido Sweden AB effective December 18, 2020)
1. Infosys Compaz PTE. Ltd
1. Infosys South Africa (Pty) Ltd
1. WongDoody Holding Company Inc.
1. WDW Communications, Inc.
1. WongDoody, Inc
1. HIPUS
1. Stater N.V.
1. Stater Nederland B.V.
1. Stater Duitsland B.V. (merged with Stater N.V effective December 23, 2020)
1. Stater XXL B.V.
1. HypoCasso B.V.
1. Stater Participations B.V.
1. Stater Deutschland Verwaltungs-GmbH (merged with Stater Duitsland effective December 18, 2020)
1. Stater Deutschland GmbH & Co. KG (merged with Stater Duitsland effective December 18, 2020)
1. Stater Belgium N.V./S.A.
1. Outbox systems Inc. dba Simplus (US)
1. Simplus North America Inc. (liquidated effective April 27, 2021)
1. Simplus ANZ Pty Ltd.
1. Simplus Australia Pty Ltd
1. Sqware Peg Digital Pty Ltd (under liquidation)
1. Simplus Philippines, Inc.
1. Simplus Europe, Ltd. (under liquidation)
1. Infosys Fluido U.K., Ltd. (formerly Simplus U.K, Ltd)
1. Infosys Fluido Ireland, Ltd. (formerly Simplus Ireland, Ltd)
1. Infosys Limited Bulgaria EOOD (incorporated effective September 11, 2020)
1. Infosys BPM UK Limited (incorporated effective December 09, 2020)
1. Blue Acorn LLC (acquired on October 27, 2020)
1. Beringer Commerce Inc (acquired on October 27, 2020)
1. Beringer Capital Digital Group Inc (acquired on October 27, 2020)
1. Mediotype LLC (acquired on October 27, 2020)
1. Beringer Commerce Holdings LLC (acquired on October 27, 2020)
1. SureSource LLC (acquired on October 27, 2020)
1. Simply Commerce LLC (acquired on October 27, 2020)
1. iCiDIGITAL LLC (acquired on October 27, 2020)
1. Kaleidoscope Animations, Inc; (acquired on October 09, 2020)
1. Kaleidoscope Prototyping LLC; (acquired on October 09, 2020)
1. GuideVision s.r.o (acquired on October 01, 2020)
1. GuideVision Deutschland GmbH (acquired on October 01, 2020)
1. GuideVision Suomi Oy (acquired on October 01, 2020)
1. GuideVision Magyarorszag Kft (acquired on October 01, 2020)
1. GuideVision Polska SP Z.O.O (acquired on October 01, 2020)
1. GuideVision UK Ltd (acquired on October 01, 2020)
1. Infosys Turkey Bilgi Teknolojikeri Sirketi (incorporated effective December 30, 2020)
1. Infosys Germany Holding Gmbh (incorporated on March 23, 2021)
1. Infosys Automotive and Mobility GmbH & Co. KG, a partnership firm (formed on March 28, 2021).
1. Infosys Employees Welfare Trust
1. Infosys Employee Benefits Trust
1. Infosys Science Foundation
100.Infosys Expanded Stock Ownership Trust

Chartered Accountants

Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Opinion

We have audited the accompanying Statement of Standalone Financial Results of INFOSYS LIMITED (the "Company"), for the quarter ended June 30, 2021, (the "Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

a. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and
b. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India of the net profit and total comprehensive income, and other financial information of the Company for the quarter ended June 30, 2021.

Basis for Opinion

We conducted our audit of the Statement in accordance with the Standards on Auditing ("SA"s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Standalone Financial Results

This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been compiled from the related audited interim condensed standalone financial statements for the quarter ended June 30, 2021. The Company's Board of Directors is responsible for the preparation and presentation of the standalone financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating

effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors is responsible for assessing the Company's ability, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the financial reporting process of the Company.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the standalone financial results of the Company to express an opinion on the standalone financial results.

Materiality is the magnitude of misstatements in the standalone financial results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial results.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

Infosys LimitedCIN: L85110KA1981PLC013115
Regd. Office: Electronics City, Hosur Road, Bengaluru 560 100, India.Website: www.infosys.com; Email: [email protected]; Telephone: 91 80 2852 0261; Fax: 91 80 2852 0362
Statement of Consolidated Audited Results of Infosys Limited and its subsidiaries for the quarter ended June 30, 2021
prepared in compliance with the Indian Accounting Standards (Ind-AS)
				(in ₹ crore, except per equity share data)
	Quarterended	Guaidaended	Quarterended	Year endedMarch 31,
	June 30,	March 31,	June 30,
Particulars
	2021	2024	2020	2020
	Audited	Audited	Audited	Audited
Revenue from operations	27,896	26,311	23,665	100,472
Other income, net	622	545	475	2,201
Total Income	28,518	26,856	24,140	102,673
ExpensesEmployee benefit expenses	15,230	14,440	13,604	55,541
Cost of technical sub-contractors	2,454	1,985∣	1,626	7,084
Travel expenses	133	161	116	554
Cost of software packages and others	1,289	1,072	893	4,223
Communication expenses	147	146	163	634
Consultancy and professional charges	396	395	262	1,261
Depreciation and amortisation expenses	829	831	756	3,267
Finance cost	-49	-50	48	195
Other expenses	815	841	880	3,286
Total expenses	21,342	19,921	18,348	76,045
Profit before tax	7,176	6,935	5,792	26,628
Tax expense:
Current tax	1,937	1,662	1,321	6,672
Deferred tax	38	ୀ95	199	533
Profit for the period	5,201	5,078	4,272	19,423

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net	(33)	(146)	147	134119
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedges, net		26	(6)	25
Exchange differences on translation of foreign operations	290	(266)	164	130
Fair value changes on investments, net	-38	(137)	-54	(102)
Total other comprehensive income/(loss), net of tax	301	(514)	358	306

Total comprehensive income for the period	5,502	4,564	4,630	19,729

Profit attributable to:
Owners of the company	5,195	5,076	4,233	:19,351
Non-controlling interest			39	-72
	5,201	5,078	4,272	19,423

Total comprehensive income attributable to:
Owners of the company	5,491	4,570	4,586	19,651
Non-controlling interest	ୀ1	$\left(6\right)$	-44	78
	5,502	4,564	4,630	19,729

Other equity ** State of the complete of the complete additional complete and a second of the complete of	74.227	74,227	$-74,227$$\begin{array}{ c c c c c c c c c c c c c c c c c c c$
$ \mathsf{Earnings}$ per equity share (par value ₹5/- each)** $\mathbb{R}^n$ and $\mathbb{R}^n$ and $\mathbb{R}^n$ and $\mathbb{R}^n$ and $ \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E} \mathsf{E}$	$\label{eq:2.1} \mathcal{L}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}})))\otimes \mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}($12.24	11.961	الموافقة المستقلة المتحدة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المالمستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة المستقلة ال
Basic (₹) Diluted (₹)¶ 2013 12: 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4-400 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 × 4000 ×	$-12.21$	11.94	45.52

						$(in \space \overline{\epsilon})$
Particulars			QuarterendedJune 30,	CuarterendedMarch 31,	QuarterendedJune 30.	Year endedMarch 31,
			2021	2021	2020	202
Dividend per share (par value ₹5/- each)Interim dividendFinal dividend	المستوات والمتحالة التواريب المتوارد	control of the	State State	s a século de modell15.00	i en la 1950 a liberaturo de M	12.0015.00

Particulars			QuarterendedJune 30,	QuarterendedMarch 31,	CutudaendedJune 30.	Year endedMarch 31.
			2021	7021	$Z$ $V$ $\overline{Z}$ $0$	202
Revenue by business segment
Financial Services (1)	di statuttu	disposition	9,217	8,677	7,457	32,583
Retail (2)			4,175	3,902	3,391	14,745
Communication (3)			3,403	3,156	3,165	12,628
Energy, Utilities, Resources and Services			3,371	3,233	3,027	12,539
Manufacturing			2,702	2,533	2,256	9,447
Hi-Tech			2,310	2,124	2,063	8,560
Life Sciences (4)			1,891	1,796	1,575	:6,870∣
All other segments (5)			827	890	731	3,100
Total			27,896	26,311	23,665	100,472
Less: Inter-segment revenue
Net revenue from operations			27,896	26,311	23,665	100,472
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (1)			2,358	2,239	2,001	8,946
Retail (2)			1,482	1,385	1,048	5,117
Communication (3)			707	:709	621	2,795
Energy, Utilities, Resources and Services			1,022	932	851	3,552
Manufacturing			625	707	:506	2,563
Hi-Tech			567	558	598	2,454
Life Sciences (4)			$-571$	547	476	2,156
All other segments (5)			100	194	20	306
Total			7,432	7,271	6,121	27,889
Less: Other Unallocable expenditure			829	831	756	3,267
Add: Unallocable other income	state provider an		622	545	475	2,201
Less: Finance cost			49	50 l	48	195
Profit before tax and non-controlling interests			7,176	6,935	5,792	26,628

				(in $\bar{\tau}$ crore)
Particulars	QuarterendedJune 30.	QuarterendedMarch 31,	QuarterendedJune 30,	Year endedMarch 31,
	2021	2021	2020	2021
Revenue from operations	23,714	22,497	20,325	85,912
Profit before tax	6,493	6,040	5,378	24,477
Profit for the period	4,723	4,459	4,008	18,048

	(in US$ million, except per equity share data)
Particulars	QuarterendedJune 30,	QuarterendedMarch 31.	QuarterendedJune 30,	Year endedMarch 31,
	2021	2021	2020	2021
	Audited	Audited	Audited	Audited
Revenues	3,782	3,613	3,121	13,561
Cost of sales	2,509	2,357	2,071	8,828
Gross profit	1,273	1,256	1,050	4,733
Operating expenses	377	372	342	1,408
Operating profit	896	884	708	3,325
Other income, net	84	75	63	297
Finance cost				26
Profit before income taxes	973	952	765	3,596
Income tax expense	268	255	201	973
Net profit	705	697	564	2,623
Earnings per equity share *
Basic	0.17	0.16	0.13	0.62
Diluted	0.17	0.16	0.13	0.61
Total assets	14,730	14,825	13,037	14,825
Cash and cash equivalents and current investments	3,499	3,700	2,886	3,700

					ιιη < crore, except per equity snare data)
Particulars		Quanter	Quarter	QUaliter	Year ended
		ended	ended	ended	March 31,
		June 30,	March 31.	June 30,
		2021	2024	20720	204
		Auchted	Audited	Audited	Autoficed
Revenue from operations		23,714	22,497	20,325	85,912
Other income, net		570	504	478	2,467
Total income		24,284	23,001	20,803	88,379
Expenses
Employee benefit expenses		12,191	11,532	11,222	45,179
Cost of technical sub-contractors		3,316	2,792	2,095	9,528
Travel expenses		115	144	92	484
Cost of software packages and others		528	550	481	2,058
Communication expenses		104	106	114	464
Consultancy and professional charges		311	338	193	999
Depreciation and amortisation expense		576	578	546	2,321
Finance cost	医水仙的现在分词	32	33	31	126
Other expenses (refer to note 2)		618	888	651	2,743
Total expenses		17,791	16,961	15,425	63,902
Profit before tax		6,493	6,040	5,378	24,477
Tax expense:
Current tax		1,697	1,512	1,225	6,013
Deferred tax		73	69	145	416
Profit for the period		4,723	4,459	4,008	18,048
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net		(32)	(144)	156	148
Equity instruments through other comprehensive income, net			8		120

Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedges, net		5	26	(6)	25
Fair value changes on investments, net		38	(133)	49	(102)

Total other comprehensive income/ (loss), net of tax		13	(243)	199	191

Total comprehensive income for the period		4,736	4,216	4,207	18,239

Paid-up share capital (par value ₹5/- each fully paid)		2,128	2,130	2,129	2,130
Other Equity*		69,401	69,401	60,105	69,401

Earnings per equity share (par value ₹5 /- each)**					42.37
Basic (₹)		11.08	10.47	9.41
Diluted $(₹)$		11.07	10.46	9.41	42.33

Particulars	QuarterendedJune 30,	QuarterendedMarch 31.	QuarterendedJune 30,	$(in \leq$Year endedMarch 31,
	2021	2021	2020	2021
Dividend per share (par value ₹5/- each)Interim dividendFinal dividend		15.00		12.0015.00

Significant growth acceleration in Q1 to 16.9% YoY and 4.8% QoQ. Large deal momentum strong with $2.6 bn TCV Revenue guidance for FY22 revised to 14%-16%. Margin guidance retained at 22%-24% e

Bengaluru, India – July 14, 2021: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered a strong Q1 performance with year on year growth accelerating to 16.9% and sequential growth increasing to 4.8% in constant currency. Large deal flows remained strong with TCV of $2.6 billion in Q1. Operating margin for the quarter was robust at 23.7%, with Free Cash Flows growing by 18.5% year on year.

"Driven by the dedication of our employees and the trust of our clients, we grew at the fastest pace in Q1 in a decade, at 16.9% year-on-year and 4.8% quarter-on-quarter in constant currency. I am proud of our employees, who as 'One Infosys' demonstrate resilience and commitment in delivering for our clients. This gives us confidence to increase our revenue growth guidance to 14%-16%", said Salil Parekh, CEO and MD. "As Infosys completes forty remarkable years, its continuing success and global impact are a testament to the vision of the founders and all the leaders who have shaped the company," he added.

42.1% YoYCC Digital growth	16.9% YoY4.8% QoQCC Revenue growth	23.7%Operating margin	22.6%YoYIncrease in EPS(₹ terms)	$2.6bnLarge deal signings
--------------------------------	--------------------------------------------	---------------------------	----------------------------------------------	------------------------------------

1. Key highlights for the quarter ended June 30, 2021

Revenues in CC terms grew by 16.9% YoY and 4.8% QoQ
Reported revenues at $3,782 million, growth of 21.2% YoY
Digital revenues at 53.9% of total revenues, YoY CC growth of 42.1%
Operating margin at 23.7%, increase of 1.0% YoY and decline of 0.8% QoQ
Basic EPS at $0.17, growth of 26.1% YoY
FCF at $863 million, YoY growth of 18.5%; FCF conversion at 122.3% of net profit

"Employee wellbeing is of paramount importance to us and we have had multiple interventions in this regard including facilitating vaccination for them and their dependents. We rolled out several intense employee engagement initiatives including career acceleration opportunities, compensation reviews and learning & development interventions. Our clients continue to be supportive of the multiple initiatives we have undertaken; they value the delivery commitments we have met even during these extraordinary times", said **Pravin Rao, Chief Operating Officer, Infosys. "**As the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. We plan to meet this demand by expanding our hiring program of college graduates for FY 22 to ~35,000 globally", he added.

"We remain confident of delivering on the margin guidance, underpinned by our comprehensive cost optimization program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention", said Nilanjan Roy, Chief Financial Officer. "Our free cash conversion was strong at 122.3% of net profit and ROE improved to 29.3%", he added.

2. Capital Allocation

Pursuant to the Board recommendation and subsequent to shareholders' approval in the AGM, the company has started share buyback program through open market route from June 25, 2021 and till date, has bought back 9.8 million shares worth ₹1,542 crore (app. $0.2 billion) or 16.8% of total authorization of ₹9,200 crore at an average price of approx. ₹1,569 per share (compared to maximum Buyback Price of ₹1,750 per share).

*USD-INR rate of 75.00

3. Client Wins & Testimonials

The trust clients' repose in Infosys drives us to invest further in building stronger digital capabilities and to raise the bar in delivery excellence.

Archrock selected Infosys for its rich experience and deep domain expertise in the energy industry to integrate digital technologies and mobile tools for its field service technicians. Infosys will leverage its pre-configured accelerator for Microsoft Dynamics 365 Field Service Application. Eric Thode, Archrock's Senior Vice President, Operations, said, "Our collaboration with Infosys is part of a multi-year technology project to further enhance the value proposition to our customers, more effectively manage our assets, reduce our emissions footprint and yield attractive value for our shareholders. Two major objectives of our digital transformation are to improve our customers' experience and make our field employees' jobs easier. As these leading-edge mobile tools are rolled out across our operations, we expect this will increase our compression unit uptime, improve the efficiency of our field service technicians and result in reduced vehicle mileage. With the right digital and energy industry credentials, we are confident Infosys is the right partner to deliver Microsoft's industry leading field service platform."
Infosys and the French Tennis Federation unveiled new technologies to help bridge the gap between remote fans and the game, transforming the Roland-Garros experience for the entire tennis ecosystem. Amélie Oudéa-Castera, Chief Executive Officer of French Tennis Federation (FFT), said, "This is our second year impacted by the challenges of the pandemic and social distancing, but partnering with Infosys we have set a gold standard for other sporting organizations navigating a disrupted season, and looking to bridge the gap between players, coaches and fans across the world. The innovations we have created are leading the way in establishing a long-term immersive and digital standard for sporting tournaments."
Infosys was selected by Britvic to help deliver their strategic transformation roadmap and operations, across Applications, Cloud Infrastructure, Service Management and End User Computing. Neal Johnson, IT Director Operations & Infrastructure at Britvic, said, "Britvic's aim is to be the most dynamic, creative and admired soft drinks company in the world which means IT needs to transform the way service and operations are delivered - with Infosys we have a strategic partner to take our operations to the next level by leveraging automation and digitalisation, thereby, offering a seamless digital experience for our enterprise users. This partnership will also

help us innovate faster, be more agile and to transform quickly by leveraging Infosys's thought leadership as a market leader in IT services for Consumer Goods companies."

ArcelorMittal selected Infosys to help accelerate the company's digital transformation journey and enable next-generation application management and business process management (BPM) services for ArcelorMittal Europe. Geert Van Poelvoorde, CEO of ArcelorMittal Europe, said, "We are delighted to partner with Infosys on our digital transformation journey. Infosys not only shares our vision and values but also brings agility, delivery excellence, and willingness to walk the extra mile to ensure mutual success. We are confident that this collaboration will mean our employees and associates are equipped with powerful new tools that enhance our competitiveness and fuel our innovation."
Posten Norge is aiming to build a best-in-class IT service management capability to create more value for its customers. Arne Erik Berntzen, CIO, Posten Norge, said, "At Posten Norge our aim is to make everyday life simpler and the world smaller by simplifying and increasing the value of trade and communication for people and enterprises in the Nordic region. Transforming our IT processes to improve the services we deliver will enable us to be at the forefront of technology and innovation and be the customer's first choice. With Infosys as a strategic partner we are aiming to build a best-in-class IT service management capability so we can create more value for our customers, with a focus on service experience. This collaboration will help us redesign our IT processes to be ready for new age software delivery methods with next generation technologies."
AGCO has been working with Infosys to deliver a first-class customer experience. Infosys has been a key player in leveraging advanced technologies to enable new opportunities for AGCO's dealers and improved services to its customers. Seth Crawford, Senior Vice President and General Manager, Precision Ag and Digital for AGCO, said, "Together with our digital partner Infosys, we have built a team that is passionate about maximizing farmers' results with smart, highquality solutions. We are creating impactful platforms with reliable, easy to use solutions for farmers and empowering our dealers with a great digital toolset. We look forward to our continued work with Infosys to offer our dealers and farmers integrated and seamless journeys through all our channels, extending their experience with our products and services."
Infosys has been one of the key drivers in delivering Axiata's first live field trials for deploying virtual and Open RAN networks. "In consideration of Axiata's Open RAN ambition across our markets, we partner up with the global best to bring next-level solutions in how we deploy, optimise and operate our networks. Infosys has been one of the key drivers in delivering our first live field trials in the deployment of virtual and Open RAN networks. In our pursuit to become The Next Generation Digital Champion, we look forward to building on this relationship as we position for more wins to future-proof our networks and meet society's evolving needs, " said Thomas Hundt, Group Executive Vice President – Technology, Axiata Group Berhad.
Infosys Finacle announced its Digital Banking SaaS (Software-as-a-Service) offering designed as an accessible solution to help Indian Urban Cooperative Banks (UCBs) to modernize their business and operations. Vidyadhar Anaskar, Chairman, Vidya Sahakari Bank Ltd, and Maharashtra Urban Cooperative Banks Federation, and Vice President, National Federation of Urban Cooperative Banks & Credit Societies LTD (NAFCUB), said, "Urban Cooperative Banks (UCBs) have immense potential waiting to be harnessed. The UCBs' geographic and demographic reach within the urban and rural populace is unmatched, not to mention the richness of the banking relationship with their customers. At Vidya Bank, we are looking at leveraging this

opportunity, to leapfrog into the future with a modern technology platform as a key strategic asset. With Infosys Finacle, we are able to fully embrace our digital-first vision and we look forward to differentiating ourselves with a winning combination of a strong community presence and techpowered, innovative, contextual, banking products."

4. Recognitions

Infosys recognized as one of India's Best Employers among Nation-Builders 2021
Infosys topped CRISIL's ranking as the most Environmental, Social, and Governance (ESG) focused IT Company in India
Infosys won four Stevie® Awards at the 19th Annual American Business Awards. Also won a silver Stevie® Award at the 2021 Asia Pacific Stevie Awards
Infosys won top spot in Institutional Investor 2021 All Asia Executive Team Ranking (IT Services & Software)
Positioned as the fourth most attractive employer in India, according to the Randstad Employer Brand Research (REBR), 2021
Ranked number 3 by Brand Finance in their top 10 most valuable Indian brands listing
Infosys was recognized as one of the top three service providers in the Nordics in the Whitelane Research and PA Consulting IT Sourcing Study 2021
Ranked among the top five in 14 countries by Top Employer Global 2021
Infosys won six awards in the Engineering Service Providers (ESP) category at the NASSCOM ER&D Showcase 2021. Also won ER&D Organization of the year award for 2021
Infosys was recognized by HPE as the Global System Integrator of the Year 2021 and Asia Pacific System Integrator of the Year 2021
Microsoft awarded 'Supplier of the Year: Large' to Infosys at 2021 Microsoft Supplier Program Prestige Awards
BluePrism recognized Infosys with Global Client Business Impact Partner of the Year Telecommunications and Regional Client Business Impact Telecommunications – APAC Awards at the BluePrism Partner Excellence Awards 2021
Ranked as a leader in Gartner Magic Quadrant for Oracle Cloud Application Services, Worldwide
Positioned as a leader in Everest Application and Digital Services in Banking PEAK Matrix® Global Assessment 2021
Ranked as a leader in IDC MarketScape: Worldwide Microsoft Implementation Services 2021 Vendor Assessment
Ranked as a leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2021 Vendor Assessment
Rated as a leader in IDC MarketScape: Worldwide Smart Manufacturing Service Providers 2021 Vendor Assessment

Positioned as a leader in NelsonHall Cognitive & Self-Healing IT Infrastructure Management Services NEAT 2021
Ranked as a leader in HFS Research Top 10: Telecom, Media, and Technology (TMT) Service Providers Top 10 2021
Positioned as a leader in HFS Research Top 10: ServiceNow Services 2021
Rated as a leader in HFS Research Top 10: Supply Chain Service Providers 2021
Ranked as a leader in NelsonHall Intelligent Automation in Banking NEAT 2021
Ranked as a leader in NelsonHall Blockchain Services NEAT 2021
EdgeVerve won two Globee awards for 'Most Innovative Software of The Year' for AssistEdge and 'Effective Leadership During COVID'
IBS Sales League Table 2021 recognized Infosys Finacle as the best-selling solution across six categories
Infosys Positioned as Leader in 'Salesforce Ecosystem Partners 2021' ISG Provider Lens™ study 2020 – Leader in Germany and U.S.
Infosys was rated a Leader in Avasant's Applied AI and Advanced Analytics Services RadarView 2021
Infosys Positioned as Leader in ISG Provider Lens™ Quadrant study on "Mainframe Services and Solutions 2021"- Leader in US
EdgeVerve was named Best Artificial Intelligence Software Company of 2021 by Digital.com

About Infosys

Infosys is a global leader in next-generation digital services and consulting. We enable clients in more than 50 countries to navigate their digital transformation. With four decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

"Certain statements in this release concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements 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 forwardlooking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding COVID-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn or recession in India, the United States and other countries around the world, changes in political, business, and economic conditions, 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, unauthorized use of our intellectual property and general economic conditions affecting our industry and the outcome of pending litigation and government investigation. 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, 2021. 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. 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."

Contact

InvestorRelations	Sandeep Mahindroo+91 80 3980 1018
	[email protected]
Media Relations	Rishi Basu+91 80 4156 3998

[email protected]

Harini Babu +1 46999 63516

Harini\[email protected]

Infosys Limited and subsidiaries

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:	(Dollars in millions)
	June 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	2,871	3,380
Current investments	628	320
Trade receivables	2,747	2,639
Unbilled revenue	1,138	1,030
Other Current assets	929	938
Total current assets	8,313	8,307
Non-current assets
Property, plant and equipment and Right-of-use assets	2,438	2,519
Goodwill and other Intangible assets	1,106	1,115
Non-current investments	1,613	1,623
Unbilled revenue	97	81
Other non-current assets	1,163	1,180
Total non-current assets	6,417	6,518
Total assets	14,730	14,825
LIABILITIES AND EQUITY
Current liabilities
Trade payables	359	362
Unearned revenue	575	554
Employee benefit obligations	304	276
Other current liabilities and provisions	2,736	2,072
Total current liabilities	3,974	3,264
Non-current liabilities
Lease liabilities	591	627
Other non-current liabilities	436	432
Total non-current liabilities	1,027	1,059
Total liabilities	5,001	4,323
Total equity attributable to equity holders of the company	9,668	10,442
Non-controlling interests	61	60
Total equity	9,729	10,502
Total liabilities and equity	14,730	14,825

Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:

	(Dollars in millions except per equity share data)
	3 months ended	3 months ended
	June 30, 2021	June 30, 2020
Revenues	3,782	3,121
Cost of sales	2,509	2,071
Gross profit	1,273	1,050
Operating expenses:
Selling and marketing expenses	169	151
Administrative expenses	208	191
Total operating expenses	377	342
Operating profit	896	708
Other income, net (3)	77	57
Profit before income taxes	973	765
Income tax expense	268	201
Net profit (before minority interest)	705	564
Net profit (after minority interest)	704	558
Basic EPS ($)	0.17	0.13
Diluted EPS ($)	0.17	0.13

NOTES:

1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2021 which have been taken on record at the Board meeting held on July 14, 2021.
2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.
3. Other Income includes Finance Cost.

Significant growth acceleration in Q1 to 16.9% YoY and 4.8% QoQ. Large deal momentum strong with $2.6 bn TCV Revenue guidance for FY22 revised to 14%-16%. Margin guidance retained at 22%-24% e

42.1% YoY	16.9% YoY	23.7%	22.6%YoY	$2.6bn
CC Digital growth	4.8% QoQ	Operating margin	Increase in EPS	Large deal signings
	CC Revenue growth		(₹ terms)

1. Key highlights for the quarter ended June 30, 2021

Revenues in CC terms grew by 16.9% YoY and 4.8% QoQ
Reported revenues at `27,896 crore, growth of 17.9% YoY
Digital revenues at 53.9% of total revenues, YoY CC growth of 42.1%
Operating margin at 23.7%, increase of 1.0% YoY and decline of 0.8% QoQ
Basic EPS at `12.24, growth of 22.6% YoY
FCF at `6,363 crore, YoY growth of 15.2%; FCF conversion at 122.3% of net profit

2. Capital Allocation

Pursuant to the Board recommendation and subsequent to shareholders' approval in the AGM, the company has started share buyback program through open market route from June 25, 2021 and till date, has bought back 9.8 million shares worth ₹1,542 crore or 16.8% of total authorization of ₹9,200 crore at an average price of approx. ₹1,569 per share (compared to maximum Buyback Price of ₹1,750 per share).

3. Client Wins & Testimonials

The trust clients' repose in Infosys drives us to invest further in building stronger digital capabilities and to raise the bar in delivery excellence.

Archrock selected Infosys for its rich experience and deep domain expertise in the energy industry to integrate digital technologies and mobile tools for its field service technicians. Infosys will leverage its pre-configured accelerator for Microsoft Dynamics 365 Field Service Application. Eric Thode, Archrock's Senior Vice President, Operations, said, "Our collaboration with Infosys is part of a multi-year technology project to further enhance the value proposition to our customers, more effectively manage our assets, reduce our emissions footprint and yield attractive value for our shareholders. Two major objectives of our digital transformation are to improve our customers' experience and make our field employees' jobs easier. As these leading-edge mobile tools are rolled out across our operations, we expect this will increase our compression unit uptime, improve the efficiency of our field service technicians and result in reduced vehicle mileage. With the right digital and energy industry credentials, we are confident Infosys is the right partner to deliver Microsoft's industry leading field service platform."
Infosys and the French Tennis Federation unveiled new technologies to help bridge the gap between remote fans and the game, transforming the Roland-Garros experience for the entire tennis ecosystem. Amélie Oudéa-Castera, Chief Executive Officer of French Tennis Federation (FFT), said, "This is our second year impacted by the challenges of the pandemic and social distancing, but partnering with Infosys we have set a gold standard for other sporting organizations navigating a disrupted season, and looking to bridge the gap between players, coaches and fans across the world. The innovations we have created are leading the way in establishing a long-term immersive and digital standard for sporting tournaments."
Infosys was selected by Britvic to help deliver their strategic transformation roadmap and operations, across Applications, Cloud Infrastructure, Service Management and End User Computing. Neal Johnson, IT Director Operations & Infrastructure at Britvic, said, "Britvic's aim is to be the most dynamic, creative and admired soft drinks company in the world which means IT needs to transform the way service and operations are delivered - with Infosys we have a strategic partner to take our operations to the next level by leveraging automation and digitalisation, thereby, offering a seamless digital experience for our enterprise users. This partnership will also help us innovate faster, be more agile and to transform quickly by leveraging Infosys's thought leadership as a market leader in IT services for Consumer Goods companies."

ArcelorMittal selected Infosys to help accelerate the company's digital transformation journey and enable next-generation application management and business process management (BPM) services for ArcelorMittal Europe. Geert Van Poelvoorde, CEO of ArcelorMittal Europe, said, "We are delighted to partner with Infosys on our digital transformation journey. Infosys not only shares our vision and values but also brings agility, delivery excellence, and willingness to walk the extra mile to ensure mutual success. We are confident that this collaboration will mean our employees and associates are equipped with powerful new tools that enhance our competitiveness and fuel our innovation."
Posten Norge is aiming to build a best-in-class IT service management capability to create more value for its customers. Arne Erik Berntzen, CIO, Posten Norge, said, "At Posten Norge our aim is to make everyday life simpler and the world smaller by simplifying and increasing the value of trade and communication for people and enterprises in the Nordic region. Transforming our IT processes to improve the services we deliver will enable us to be at the forefront of technology and innovation and be the customer's first choice. With Infosys as a strategic partner we are aiming to build a best-in-class IT service management capability so we can create more value for our customers, with a focus on service experience. This collaboration will help us redesign our IT processes to be ready for new age software delivery methods with next generation technologies."
AGCO has been working with Infosys to deliver a first-class customer experience. Infosys has been a key player in leveraging advanced technologies to enable new opportunities for AGCO's dealers and improved services to its customers. Seth Crawford, Senior Vice President and General Manager, Precision Ag and Digital for AGCO, said, "Together with our digital partner Infosys, we have built a team that is passionate about maximizing farmers' results with smart, highquality solutions. We are creating impactful platforms with reliable, easy to use solutions for farmers and empowering our dealers with a great digital toolset. We look forward to our continued work with Infosys to offer our dealers and farmers integrated and seamless journeys through all our channels, extending their experience with our products and services."
Infosys has been one of the key drivers in delivering Axiata's first live field trials for deploying virtual and Open RAN networks. "In consideration of Axiata's Open RAN ambition across our markets, we partner up with the global best to bring next-level solutions in how we deploy, optimise and operate our networks. Infosys has been one of the key drivers in delivering our first live field trials in the deployment of virtual and Open RAN networks. In our pursuit to become The Next Generation Digital Champion, we look forward to building on this relationship as we position for more wins to future-proof our networks and meet society's evolving needs, " said Thomas Hundt, Group Executive Vice President – Technology, Axiata Group Berhad.
Infosys Finacle announced its Digital Banking SaaS (Software-as-a-Service) offering designed as an accessible solution to help Indian Urban Cooperative Banks (UCBs) to modernize their business and operations. Vidyadhar Anaskar, Chairman, Vidya Sahakari Bank Ltd, and Maharashtra Urban Cooperative Banks Federation, and Vice President, National Federation of Urban Cooperative Banks & Credit Societies LTD (NAFCUB), said, "Urban Cooperative Banks (UCBs) have immense potential waiting to be harnessed. The UCBs' geographic and demographic reach within the urban and rural populace is unmatched, not to mention the richness of the banking relationship with their customers. At Vidya Bank, we are looking at leveraging this opportunity, to leapfrog into the future with a modern technology platform as a key strategic asset. With Infosys Finacle, we are able to fully embrace our digital-first vision and we look forward to

differentiating ourselves with a winning combination of a strong community presence and techpowered, innovative, contextual, banking products."

4. Recognitions

Infosys recognized as one of India's Best Employers among Nation-Builders 2021
Infosys topped CRISIL's ranking as the most Environmental, Social, and Governance (ESG) focused IT Company in India
Infosys won four Stevie® Awards at the 19th Annual American Business Awards. Also won a silver Stevie® Award at the 2021 Asia Pacific Stevie Awards
Infosys won top spot in Institutional Investor 2021 All Asia Executive Team Ranking (IT Services & Software)
Positioned as the fourth most attractive employer in India, according to the Randstad Employer Brand Research (REBR), 2021
Ranked number 3 by Brand Finance in their top 10 most valuable Indian brands listing
Infosys was recognized as one of the top three service providers in the Nordics in the Whitelane Research and PA Consulting IT Sourcing Study 2021
Ranked among the top five in 14 countries by Top Employer Global 2021
Infosys won six awards in the Engineering Service Providers (ESP) category at the NASSCOM ER&D Showcase 2021. Also won ER&D Organization of the year award for 2021
Infosys was recognized by HPE as the Global System Integrator of the Year 2021 and Asia Pacific System Integrator of the Year 2021
Microsoft awarded 'Supplier of the Year: Large' to Infosys at 2021 Microsoft Supplier Program Prestige Awards
BluePrism recognized Infosys with Global Client Business Impact Partner of the Year Telecommunications and Regional Client Business Impact Telecommunications – APAC Awards at the BluePrism Partner Excellence Awards 2021
Ranked as a leader in Gartner Magic Quadrant for Oracle Cloud Application Services, Worldwide
Positioned as a leader in Everest Application and Digital Services in Banking PEAK Matrix® Global Assessment 2021
Ranked as a leader in IDC MarketScape: Worldwide Microsoft Implementation Services 2021 Vendor Assessment
Ranked as a leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2021 Vendor Assessment
Rated as a leader in IDC MarketScape: Worldwide Smart Manufacturing Service Providers 2021 Vendor Assessment
Positioned as a leader in NelsonHall Cognitive & Self-Healing IT Infrastructure Management Services NEAT 2021

Ranked as a leader in HFS Research Top 10: Telecom, Media, and Technology (TMT) Service Providers Top 10 2021
Positioned as a leader in HFS Research Top 10: ServiceNow Services 2021
Rated as a leader in HFS Research Top 10: Supply Chain Service Providers 2021
Ranked as a leader in NelsonHall Intelligent Automation in Banking NEAT 2021
Ranked as a leader in NelsonHall Blockchain Services NEAT 2021
EdgeVerve won two Globee awards for 'Most Innovative Software of The Year' for AssistEdge and 'Effective Leadership During COVID'
IBS Sales League Table 2021 recognized Infosys Finacle as the best-selling solution across six categories
Infosys Positioned as Leader in 'Salesforce Ecosystem Partners 2021' ISG Provider Lens™ study 2020 – Leader in Germany and U.S.
Infosys was rated a Leader in Avasant's Applied AI and Advanced Analytics Services RadarView 2021
Infosys Positioned as Leader in ISG Provider Lens™ Quadrant study on "Mainframe Services and Solutions 2021"- Leader in US
EdgeVerve was named Best Artificial Intelligence Software Company of 2021 by Digital.com

About Infosys

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

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Contact

InvestorRelations	Sandeep Mahindroo+91 80 3980 1018
	[email protected]
Media Relations	Rishi Basu+91 80 4156 3998

[email protected]

Harini Babu +1 46999 63516

Harini\[email protected]

Infosys Limited and subsidiaries

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:		(in ` crore)
	June 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	21,339	24,714
Current investments	4,664	2,342
Trade receivables	20,421	19,294
Unbilled revenue	8,456	7,527
Other Current assets	6,912	6,856
Total current assets	61,792	60,733
Non-current assets
Property, plant and equipment and Right-of-use assets	18,120	18,417
Goodwill and other Intangible assets	8,221	8,151
Non-current investments	11,989	11,863
Unbilled revenue	722	594
Other non-current assets	8,642	8,628
Total non-current assets	47,694	47,653
Total assets	109,486	108,386
LIABILITIES AND EQUITY
Current liabilities
Trade payables	2,668	2,645
Unearned revenue	4,278	4,050
Employee benefit obligations	2,257	2,020
Other current liabilities and provisions	20,335	15,150
Total current liabilities	29,538	23,865
Non-current liabilities
Lease liabilities	4,391	4,587
Other non-current liabilities	3,244	3,152
Total non-current liabilities	7,635	7,739
Total liabilities	37,173	31,604
Total equity attributable to equity holders of the company	71,871	76,351
Non-controlling interests	442	431
Total equity	72,313	76,782
Total liabilities and equity	109,486	108,386

Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:

	(in ` crore except per equity share data)
	3 months ended3 months ended
	June 30, 2021	June 30, 2020
Revenues	27,896	23,665
Cost of sales	18,506	15,703
Gross profit	9,390	7,962
Operating expenses:
Selling and marketing expenses	1,248	1,146
Administrative expenses	1,539	1,451
Total operating expenses	2,787	2,597
Operating profit	6,603	5,365
Other income, net (3)	573	427
Profit before income taxes	7,176	5,792
Income tax expense	1,975	1,520
Net profit (before minority interest)	5,201	4,272
Net profit (after minority interest)	5,195	4,233
Basic EPS ($)	12.24	9.98
Diluted EPS ($)	12.21	9.97

NOTES:

1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2021 which have been taken on record at the Board meeting held on July 14, 2021.
2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.
3. Other Income includes Finance Cost.

Chartered Accountants Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Report on the Audit of the Interim Condensed Consolidated Financial Statements

Opinion

We have audited the accompanying Interim condensed consolidated financial statements of INFOSYS LIMITED (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at June 30, 2021, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the three months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed consolidated financial statements give a true and fair view in conformity with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") as issued by the International Accounting Standards Board ("IASB"), of the consolidated state of affairs of the Group as at June 30, 2021, the consolidated profit and consolidated total comprehensive income, consolidated changes in equity and its consolidated cash flows for the three months ended on that date.

Basis for Opinion

We conducted our audit of the interim condensed consolidated financial statements in accordance with the Standards on Auditing ("SA"s) issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the interim condensed consolidated financial statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the ICAI and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the interim condensed consolidated financial statements.

Management's Responsibilities for the Interim Condensed Consolidated Financial Statements

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with IAS 34 as issued by the IASB. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records for safeguarding assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were

operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the interim condensed consolidated financial statements by the Directors of the Company, as aforesaid.

In preparing the interim condensed consolidated financial statements, the respective Boards of Directors of the companies included in the Group are responsible for assessing ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intend to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.

The respective Boards of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the interim condensed consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these interim condensed consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the interim condensed consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's internal financial controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the interim condensed consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the interim condensed consolidated financial statements, including the disclosures, and whether the interim condensed consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the interim condensed consolidated financial statements of which we are independent auditors.

Materiality is the magnitude of misstatements in the interim condensed consolidated financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the interim condensed consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the interim condensed consolidated financial statements.

We communicate with those charged with governance of the Company and such other entities included in the interim condensed consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

Condensed Consolidated Balance Sheet2
Condensed Consolidated Statements of Comprehensive Income 3
Condensed Consolidated Statement of Changes in Equity 4
Condensed Consolidated Statements of Cash Flows 6
Overview and Notes to the Consolidated financial statements8
1. Overview8
1.1 Company overview8
1.2 Basis of preparation of financial statements8
1.3 Basis of consolidation8
1.4 Use of estimates and judgments 8
1.5 Critical accounting estimates and judgements9
1.6 Recent accounting pronouncements 10
2. Notes to the Interim Condensed Consolidated Financial Statements12
2.1 Cash and cash equivalents12
2.2 Investments13
2.3 Financial instruments15
2.4 Prepayments and other assets 21
2.5 Other liabilities22
2.6 Provisions and other contingencies 23
2.7 Property, plant and equipment24
2.8 Leases26
2.9 Goodwill and intangible assets28
2.10 Business combination30
2.11 Employees' Stock Option Plans (ESOP)31
2.12 Income taxes34
2.13 Basic and diluted shares used in computing earnings per equity share 36
2.14 Related party transactions37
2.15 Segment Reporting 38
2.16 Revenue from Operations40
2.17 Unbilled revenue 43
2.18 Break-up of expenses and other income, net 44
2.19 Equity 48

	C(Dollars in millions except equity share data)




















































Total liabilities and equity	14,730	14,825

The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached.

Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao

Sanjiv V. Pilgaonkar Partner D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

Membership No. 039826 Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

Company Secretary

A.G.S. Manikantha

	C (Dollars in millions except equity share and per equity share data)
Condensed Consolidated Statements of Comprehensive IncomeNote		Three months ended
		June 30, 2021	June 30, 2020
Revenues	2.16	3,782	3,121
Cost of sales	2.18	2,509	2,071
Gross profit		1,273	1,050
Operating expenses:
Selling and marketing expenses	2.18	169	151
Administrative expenses	2.18	208	191
Total operating expenses		377	342
Operating profit		896	708
Other income, net	2.18	84	63
Finance cost		7	6
Profit before income taxes		973	765
Income tax expense	2.12	268	201
Net profit		705	564
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Re-measurements of the net defined benefit liability/asset, net		(4)	20
		(4)	20
Items that will be reclassified subsequently to profit or loss:
Fair valuation of investments, net	2.2	5	7
Fair value changes on derivatives designated as cash flow hedge, net		-	(1)
Foreign currency translation		(132)	40
		(127)	46
Total other comprehensive income/(loss), net of tax		(131)	66
Total comprehensive income		574	630
Profit attributable to:
Owners of the company		704	558
Non-controlling interests		1	6
		705	564
Total comprehensive income attributable to:
Owners of the company		573	624
Non-controlling interests		1	6
		574	630
Earnings per equity share
Basic ($)		0.17	0.13
Diluted ($)		0.17	0.13
Weighted average equity shares used in computing earnings per equity share	2.13
Basic		4,245,516,974	4,241,101,049
Diluted		4,253,310,685	4,246,278,846

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached. Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Sanjiv V. Pilgaonkar Partner Membership No. 039826

A.G.S. Manikantha Company Secretary

Mumbai Bengaluru July 14, 2021 July 14, 2021

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao

Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Condensed Consolidated Statement of Changes in Equity

(Dollars in millions except equity share data) Number of shares(1) Share capital Share premium Retained earnings Other reserves (2) Capital redemption reserve Cash flow hedge reserve Other components of equity Total equity attributable to equity holders of the company Noncontrolling interest Total equity Balance as at April 1, 2020 4,240,753,210 332 305 11,014 594 17 (2) (3,614) 8,646 55 8,701 Changes in equity for three months ended June 30, 2020 Net profit - - - 558 - - - - 558 6 564 Remeasurement of the net defined benefit liability/asset* - - - - - - - 20 20 - 20 Fair value changes on investments, net* - - - - - - - 7 7 - 7 Fair value changes on derivatives designated as cash flow hedge* - - - - - - (1) - (1) - (1) Foreign currency translation - - - - - - - 40 40 - 40 Total comprehensive income for the period - - - 558 - - (1) 67 624 6 630 Shares issued on exercise of employee stock options (Refer note 2.11) 592,183 - 1 - - - - - 1 - 1 Transfer to other reserves - - - (97) 97 - - - - - - Transfer from other reserves on utilization - - - 42 (42) - - - - - - Employee stock compensation expense (Refer note 2.11) - - 8 - - - - - 8 - 8 Dividends (including dividend distribution tax)# - - - (532) - - - - (532) - (532) Balance as at June 30, 2020 4,241,345,393 332 314 10,985 649 17 (3) (3,547) 8,747 61 8,808

(Dollars in millions except equity share data)

	Number of shares(1)	Sharecapital	Sharepremium	Retainedearnings	Otherreserves (2)	Capitalredemptionreserve	Cash flowhedgereserve	Othercomponents ofequity	Total equityattributable toequity holders ofthe company	Noncontrollinginterest	Totalequity
Balance as at April 1, 2021	4,245,146,114	332	359	12,087	908	17	2	(3,263)	10,442	60	10,502
Changes in equity for three months ended June 30, 2021
Net profit	-	-	-	704	-	-	-	-	704	1	705
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	-	(4)	(4)	-	(4)
Fair value changes on investments, net*	-	-	-	-	-	-	-	5	5	-	5
Foreign currency translation	-	-	-	-	-	-	-	(132)	(132)	-	(132)
Total comprehensive income for the period	-	-	-	704	-	-	-	(131)	573	1	574
Shares issued on exercise of employee stock options (Refer note 2.11)	980,742	-	1	-	-	-	-	-	1	-	1
Buyback of equity shares (Refer to note 2.5 and 2.19)**	(4,390,000)	-	-	(499)	-	-	-	-	(499)	-	(499)
Transaction cost relating to buyback *	-	-	-	(2)	-	-	-	-	(2)	-	(2)
Transfer from other reserves on utilization	-	-	-	29	(29)	-	-	-	-	-	-
Transfer to other reserves	-	-	-	(101)	101	-	-	-	-	-	-
Employee stock compensation expense (Refer note 2.11)	-	-	14	-	-	-	-	-	14	-	14
Dividends#	-	-	-	(861)	-	-	-	-	(861)	-	(861)
Balance as at June 30, 2021	4,241,736,856	332	374	11,357	980	17	2	(3,394)	9,668	61	9,729
* net of tax

** including tax on buyback of $94 million.

# net of treasury shares

(1) excludes treasury shares of 15,144,907 as at June 30, 2021, 15,514,732 as at April 1, 2021, 17,809,235 as at June 30, 2020 and 18,239,356 as at April 1, 2020, held by consolidated trust.

(2) represents the Special Economic Zone Re-investment reserve created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA(2) of the Income Tax Act, 1961.

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached

Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Sanjiv V. Pilgaonkar Partner Membership No. 039826 D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

July 14, 2021 July 14, 2021

Mumbai Bengaluru

Condensed Consolidated Statements of Cash Flows

Accounting Policy

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

		(Dollars in millions)
Particulars	Note	Three months endedJune 30, 2021June 30, 2020

Operating activities:
Net Profit		705	564
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.18	113	100
Interest and dividend income		(27)	(18)
Finance Cost		7	6
Income tax expense	2.12	268	201
Effect of exchange rate changes on assets and liabilities, net		16	3
Impairment loss under expected credit loss model		6	13
Stock compensation expense	2.11	15	10
Other adjustments		(13)	3
Changes in working capital
Trade receivables and unbilled revenue		(304)	(57)
Prepayments and other assets		42	13
Trade payables		3	(12)
Unearned revenue		31	15
Other liabilities and provisions		228	37
Cash generated from operations		1,090	878
Income taxes paid		(158)	(95)
Net cash generated by operating activities		932	783

Investing activities:
Expenditure on property, plant and equipment and intangibles		(69)	(55)
Deposits placed with corporation		(23)	(17)
Interest and dividend received		24	14
Payment of contingent consideration pertaining to acquisition of business		(7)	(20)
Escrow and other deposits pertaining to Buyback	2.4	(43)	-
Payments to acquire Investments
Liquid mutual funds and fixed maturity plan securities		(1,598)	(666)
Certificate of deposits		(34)	-
Quoted debt securities		(55)	(406)
Proceeds on sale of Investments
Quoted debt securities		7	154
Certificate of deposits		-	33
Liquid mutual funds and fixed maturity plan securities		1,358	763
Other Investments		-	3
Other payments		(3)	-
Other receipts		2	2
Net cash (used)/generated in investing activities		(441)	(195)

Financing activities:
Payment of Lease Liabilities		(28)	(19)
Payment of dividends		(861)	-
Shares issued on exercise of employee stock options		1	1
Other receipts		6	-
Buy back of equity shares including transaction costs	2.19.1	(72)	-
Net cash used in financing activities		(954)	(18)
Effect of exchange rate changes on cash and cash equivalents		(46)	16
Net increase / (decrease) in cash and cash equivalents		(463)	570
Cash and cash equivalents at the beginning of the period	2.1	3,380	2,465
Cash and cash equivalents at the end of the period	2.1	2,871	3,051
Supplementary information:
Restricted cash balance	2.1	71	51

Closing cash and cash equivalents as per Consolidated Statement of Cash Flows		2,871	3,051
Less: Earmarked bank balance for dividend		-	(536)
Closing cash and cash equivalents as per Consolidated Balance Sheet	2.1	2,871	2,515

The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached

Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao

Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

Sanjiv V. Pilgaonkar Partner Membership No.039826

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

A.G.S. Manikantha Company Secretary

Notes to the consolidated financial statements

1. Overview

1.1 Company overview

Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future.

Infosys together with its subsidiaries and controlled trusts is herein after referred to as the "Group".

The company is a public limited company incorporated and domiciled in India and has its registered office at Bengaluru, Karnataka, India. The company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited in India. The company's American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE).

The Group's interim condensed consolidated financial statements are authorized for issue by the company's Board of Directors on July 14, 2021.

1.2 Basis of preparation of financial statements

The interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on the accrual basis except for certain financial instruments which have been measured at fair values. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the company's Annual Report on Form 20-F for the year ended March 31, 2021. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Basis of consolidation

Infosys consolidates entities which it owns or controls. The interim condensed consolidated financial statements comprise the financial statements of the company, its controlled trusts and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases.

The financial statements of the Group companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. The financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the company, are excluded.

1.4 Use of estimates and judgments

The preparation of the financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 1.5. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements.

Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):

The Group has considered the possible effects that may result from the COVID-19 pandemic in the preparation of these consolidated financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of the COVID-19 pandemic, the Group has, at the date of approval of these consolidated financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of the COVID-19 pandemic on the Group's financial statements may differ from that estimated as at the date of approval of these consolidated financial statements.

1.5 Critical accounting estimates and judgements

a. Revenue recognition

The Group's contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement.

Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Group's costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables.

The Group uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information.

Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

b. Income taxes

The Group's two major tax jurisdictions are India and the U.S., though the company also files tax returns in other overseas jurisdictions.

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

In assessing the realizability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced (refer to note 2.12).

c. Business combinations and intangible assets

Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management.

d. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology (Refer to note 2.7).

e. Impairment of Goodwill

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGUs) is less than it's carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represent the lowest level at which goodwill is monitored for internal management purposes.

The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins.

f. Leases

As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Group has concluded that no material changes are required to lease period relating to the existing lease contracts (Refer note 2.8).

g. Allowance for credit losses on receivables and unbilled revenue

The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The group considered current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates. In calculating expected credit loss, the Group has also considered credit reports and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19.

1.6 Recent accounting pronouncements

New and revised IFRS Standards in issue but not yet effective:

Amendments to IAS 16 Property, Plant and Equipment Proceeds before Intended Use Amendments to IAS 37 Onerous Contracts Cost of Fulfilling a Contract Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors Amendments to IAS 1, Presentation of Financial Statements Disclosure of Accounting Policies Amendments to IAS12, Income taxes Deferred Tax related to Assets and Liabilities arising

Definition of Accounting Estimates

from a Single Transaction

Amendments to IAS 16

On May 14, 2020 International Accounting Standards Board (IASB) has issued amendment to IAS 16 Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) which amends the standard to prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.

The effective date for adoption of this amendment is annual periods beginning on or after January 1, 2022, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its consolidated financial statements.

Amendments to IAS 37

On May 14, 2020 International Accounting Standards Board (IASB) has issued Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) which specify that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).

The effective date for adoption of this amendment is annual periods beginning on or after January 1, 2022, although early adoption is permitted. The Group is in the process of evaluating the impact of the amendment.

Amendments to IAS 8

On February 12, 2021 International Accounting Standards Board (IASB) has issued amendments to IAS 8 Accounting Policies, Changes in Accounting estimates and Errors which introduced a definition of 'accounting estimates' and included amendments to IAS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

The effective date for adoption of this amendment is annual periods beginning on or after January 1, 2023, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its consolidated financial statements.

Amendments to IAS 1

On February 12, 2021 International Accounting Standards Board (IASB) has issued amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements which requires the entities to disclose their material accounting policies rather than their significant accounting policies.

The effective date for adoption of this amendment is annual periods beginning on or after January 1, 2023, although early adoption is permitted. The Group is in the process of evaluating the impact of the amendment.

Amendments to IAS 12

On May 2021, International Accounting Standards Board (IASB) has issued amendment to IAS 12 Income Taxes which narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

2. Notes to the Interim Condensed Consolidated Financial Statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

		(Dollars in millions)
	As at
Particulars	June 30, 2021	March 31, 2021
Cash and bank deposits	2,270	2,745
Deposits with financial institutions	601	635
Total Cash and cash equivalents	2,871	3,380

Cash and cash equivalents as at June 30, 2021 and March 31, 2021 include restricted cash and bank balances of $71 million and $69 million, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company and bank balances held as margin money deposits against guarantees.

The deposits maintained by the Group with banks and financial institutions comprise of time deposits, which can be withdrawn by the Group at any point without prior notice or penalty on the principal.

2.2 Investments

The carrying value of investments are as follows:

		(Dollars in millions)
Particulars	As at
	June 30, 2021	March 31, 2021
(i) Current

Amortized cost
Quoted debt securities	3	-
Fair value through profit or loss
Liquid Mutual funds	443	205
Fair Value through Other comprehensive
income
Quoted debt securities	148	115
Certificate of deposits	34	-
Total current investments	628	320

(ii) Non-current

Amortized cost
Quoted debt securities	287	294
Fair value through Other comprehensive
income
Quoted debt securities	1,290	1,293
Unquoted equity and preference securities	23	23
Fair value through profit or loss
Unquoted Preference securities	1	2
Unquoted Compulsorily convertible debentures	1	1
Others(1)	11	10
Total Non-current investments	1,613	1,623

Total investments	2,241	1,943

Investment carried at amortized cost	290	294
Investments carried at fair value through other comprehensive income	1,495	1,431
Investments carried at fair value through profit or loss	456	218

(1)Uncalled capital commitments outstanding as on June 30, 2021 and March 31, 2021 was $5 million and $6 million, respectively.

Refer note 2.3 for accounting policies on financial instruments.

Method of fair valuation:			(Dollars in millions)
		Fair value
Class of investmentMethod		As at June 30, 2021	As at March 31,2021
Liquid mutual fund unitsQuoted debt securities- carried at amortized cost	Quoted priceQuoted price and marketobservable inputs	443344	205347
Quoted debt securities- carried at Fair valuethrough other comprehensive income	Quoted price and marketobservable inputs	1,438	1,408
Certificate of deposits	Market observable inputs	34	-
Unquoted equity and preference securities at fairvalue through other comprehensive income	Discounted cash flows method,Market multiples method, Optionpricing model	23	23
Unquoted equity and preference securities - carriedat fair value through profit or loss	Discounted cash flows method,Market multiples method, Optionpricing model	1	2
Unquoted compulsorily convertible debentures -carried at fair value through profit and loss	Discounted cash flows method	1	1
Others	Discounted cash flows method,Market multiples method, Optionpricing model	11	10
		2,295	1,996

Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

2.3 Financial instruments

Accounting Policy

2.3.1 Initial recognition

The group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

2.3.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income (FVOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

b. Derivative financial instruments

The group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

(i) Financial assets or financial liabilities at fair value through profit or loss.

This category includes derivative financial assets or liabilities which are not designated as hedges.

Although the group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the statement of comprehensive income when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the balance sheet date.

(ii) Cash flow hedge

The group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transaction. .

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the statement of comprehensive income. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the statement of comprehensive income upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the statement of comprehensive income.

2.3.3 Derecognition of financial instruments

The group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IFRS 9. A financial liability (or a part of a financial liability) is derecognized from the group's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.3.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

2.3.5 Impairment

The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in consolidated statement of comprehensive income.

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at June 30, 2021 were as follows:

						(Dollars in millions)
	Amortizedcost	Financial assets/liabilities at fair valuethrough profit or loss		Financial assets/liabilitiesat fair value through OCI		Totalcarryingvalue	Totalfairvalue
Particulars		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignatedupon initialrecognition	Mandatory
Assets:
Cash and cash equivalents (Refer note2.1)	2,871	-	-	-	-	2,871	2,871
Investments (Refer to Note 2.2)
Liquid mutual fund units	-	-	443	-	-	443	443
Quoted debt securities	290	-	-	-	1,438	1,728	1,782	(1)
Certificate of deposits	-	-	-	-	34	34	34
Unquoted equity and preferencesecurities	-	-	1	23	-	24	24
Unquoted Compulsorily convertibledebentures	-	-	1	-	-	1	1
Unquoted investment others	-	-	11	-	-	11	11
Trade receivables	2,747	-	-	-	-	2,747	2,747
Unbilled revenues (Refer note 2.17)(3)	522	-	-	-	-	522	522
Prepayments and other assets (Refer toNote 2.4)	607	-	-	-	-	607	593	(2)
Derivative financial instruments	-	-	4	-	5	9	9
Total	7,037	-	460	23	1,477	8,997	9,037
Liabilities:
Trade payables	359	-	-	-	-	359	359
Lease liabilities	691		-	-	-	691	691
Derivative financial instruments	-	-	6	-	1	7	7
Financial liability under optionarrangements	-	-	96	-	-	96	96
Other liabilities including contingentconsideration (Refer to note 2.5)	1,824	-	12	-	-	1,836	1,836
Total	2,874	-	114	-	1	2,989	2,989

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of $14 million.

(3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones

The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows:

(Dollars in millions)

Particulars	Amortizedcost	Financial assets/liabilities at fair valuethrough profit or loss		Financial assets/liabilitiesat fair value through OCI			Totalfairvalue
		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignatedupon initialrecognition	Mandatory
Assets:
Cash and cash equivalents (Refer toNote 2.1)	3,380	-	-	-	-	3,380	3,380
Investments (Refer note 2.2)Liquid mutual fund unitsQuoted debt securities	-294	--	205-	--	-1,408	2051,702	2051,755	(1)
Unquoted equity and preferencesecurities	-	-	2	23	-	25	25
Unquoted Compulsorily convertibledebentures	-	-	1	-	-	1	1
Unquoted investment others	-	-	10	-	-	10	10
Trade receivables	2,639	-	-	-	-	2,639	2,639
Unbilled revenues(Refer note 2.17)(3)	489	-	-	-	-	489	489
Prepayments and other assets (Refer toNote 2.4)	544	-	-	-	-	544	531	(2)
Derivative financial instruments	-	-	23	-	3	26	26
Total	7,346	-	241	23	1,411	9,021	9,061
Liabilities:
Trade payables	362	-	-	-	-	362	362
Lease liabilities	728	-	-	-	-	728	728
Derivative financial instrumentsFinancial liability under optionarrangements	--	--	895	--	--	895	895
Other liabilities including contingentconsideration (Refer to note 2.5)	1,351	-	22	-	-	1,373	1,373
Total	2,441	-	125	-	-	2,566	2,566

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of $13 million.

(3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones

For trade receivables and trade payables and other assets and payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities as at June 30, 2021

Fair value measurement at end of thereporting period using
Level 3

-
-
-
24
1
11
-


-
96
12

*Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the three months ended June 30, 2021, quoted debt securities of $72 million were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of $276 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2021

Particulars	As at March31, 2021		Fair value measurement at end of thereporting period using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.2)	205	205	-	-
Investments in quoted debt securities (Refer to Note 2.2)	1,755	1,556	199	-
Investments in unquoted equity and preference securities (Refer to Note 2.2)	25	-	-	25
Investments in unquoted compulsorily convertible debentures (Refer to Note2.2)	1	-	-	1
Investments in unquoted investments others (Refer to Note 2.2)	10	-	-	10
Derivative financial instruments- gain on outstanding foreign exchangeforward and option contracts	26	-	26	-
Liabilities
Derivative financial instruments- loss on outstanding foreign exchangeforward and option contracts	8	-	8	-
Financial liability under option arrangements (Refer to Note 2.5)	95	-	-	95
Liability towards contingent consideration (Refer to Note 2.5)*	22	-	-	22

*Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the year ended March 31, 2021 quoted debt securities of $14 million were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of $161 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value.

Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, fixed maturity plan securities, certificates of deposit, commercial papers, quoted bonds issued by government and quasi-government organizations and non convertible debentures. The Group invests after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per its risk management program.

(Dollars in millions)

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

Particulars As at June 30, 2021 March 31, 2021 Current Rental deposits 8 4 Security deposits 1 1 Loans to employees 26 22 Prepaid expenses(1) 158 159 Interest accrued and not due 69 85 Withholding taxes and others(1) 221 286 Advance payments to vendors for supply of goods(1) 31 19 Deposit with corporations* 291 276 Escrow and other deposits pertaining to buyback (Refer to Note No 2.19.1) 43 - Deferred contract cost(1) 10 9 Net investment in sublease of right of use asset (Refer to note 2.8) 5 5 Other financial assets 57 46 Total Current prepayment and other assets 920 912 Non-current Loans to employees 6 4 Security deposits 7 7 Deposit with corporations * 8 6 Defined benefit plan assets(1) 3 3 Prepaid expenses(1) 10 11 Deferred contract cost(1) 31 20 Withholding taxes and others(1) 95 96 Net investment in sublease of right of use asset (Refer to note 2.8) 47 48 Rental Deposits 25 30 Other financial assets 14 10 Total Non- current prepayment and other assets 246 235 Total prepayment and other assets 1,166 1,147 Financial assets in prepayments and other assets 607 544

(1) Non financial assets

Withholding taxes and others primarily consist of input tax credits and Cenvat recoverable from Government of India.

*Deposit with corporation represents amounts deposited to settle certain employee-related obligations as and when they arise during the normal course of business.

(Dollars in millions)

2.5 Other liabilities

Other liabilities comprise the following:

(Dollars in millions)

Particulars	As at
	June 30, 2021	March 31, 2021
Current
Accrued compensation to employees	555	550
Accrued defined benefit plan liability(1)	-	1
Accrued expenses	733	612
Withholding taxes and others (1)	320	297
Retention money	2	2
Liabilities of controlled trusts	28	27
Deferred income - government grants(1)	-	-
Liability towards contingent consideration	3	10
Capital creditors	44	51
Financial Liability on account of buyback(2) (Refer to note 2.19)	334	-
Tax on buyback (1) (Refer to note 2.19)	94	-
Others non financial liabilities(1)	1	1
Other financial liabilities	28	21
Total Current other liabilities	2,142	1,572
Non-Current
Liability towards contingent consideration	9	12
Accrued compensation to employees	1	-
Accrued expenses	86	78
Accrued defined benefit plan liability(1)	45	44
Deferred income - government grants(1)	8	8
Deferred income (1)	2	2
Financial liability under option arrangements	96	95
Withholding taxes and others(1)	50	50
Other financial liabilities	13	10
Total Non-current other liabilities	310	299
Total other liabilities	2,452	1,871
Financial liabilities included in other liabilities	1,932	1,468
Financial liability towards contingent consideration on an undiscounted basis	15	25

(1) Non financial liabilities

(2) In accordance with IAS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at June 30, 2021 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (refer to note 2.19). The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.

Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance.

2.6 Provisions and other contingencies

Accounting Policy

A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Post sales client support

The Group provides its clients with a fixed-period post sales support for its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in cost of sales. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

Onerous contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract.

Provisions comprise the following:

		(Dollars in millions)
	As at
Particulars	June 30, 2021	March 31, 2021
Provision for post sales client support and other provisions	97	97
	97	97

Provision for post sales client support represents costs associated with providing post sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year.

Provision for post sales client support and other provisions is included in cost of sales in the condensed consolidated statement of comprehensive income.

As at June 30, 2021 and March 31, 2021, claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities- Refer to Note 2.12) amounted to $82 million (₹606 crore) and $82 million (₹599 crore), respectively.

Legal Proceedings

The Group is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Group's management reasonably expects based on currently available information, that these legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Group's results of operations or financial condition.

2.7 Property, plant and equipment

Accounting Policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Building 22-25 years Plant and machinery(1) 5 years Computer equipment 3-5 years Furniture and fixtures 5 years Vehicles 5 years Leasehold improvements Lower of useful life of the asset or lease term (1) includes solar plant with a useful life of 20 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of assets not ready to use before such date are disclosed under 'Capital work-inprogress'. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement of comprehensive income when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in net profit in the consolidated statement of comprehensive income.

Impairment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

Following are the changes in the carrying value of property, plant and equipment for three months ended June 30, 2021:

							(Dollars in millions)
Particulars	Land	Buildings	Plant andmachinery	Computerequipment	Furniture andfixtures	Vehicles	Total
Gross carrying value as at April 1, 2021	191	1,445	679	1,045	416	6	3,782
Additions	-	21	7	45	6	-	79
Deletions	-	-	(1)	(7)	(1)	-	(9)
Translation difference	(3)	(20)	(10)	(15)	(5)	-	(53)
Gross carrying value as at June 30, 2021	188	1,446	675	1,068	416	6	3,799
Accumulated depreciation as at April 1, 2021	-	(503)	(492)	(771)	(294)	(4)	(2,064)
Depreciation	-	(14)	(14)	(33)	(12)	-	(73)
Accumulated depreciation on deletions	-	-	1	7	1	-	9
Translation difference	-	8	8	11	4	(1)	30
Accumulated depreciation as at June 30, 2021	-	(509)	(497)	(786)	(301)	(5)	(2,098)
Capital work-in progress as at June 30, 2021							124
Carrying value as at June 30, 2021	188	937	178	282	115	1	1,825
Capital work-in progress as at April 1, 2021							145
Carrying value as at April 1, 2021	191	942	187	274	122	2	1,863

Following are the changes in the carrying value of property, plant and equipment for three months ended June 30, 2020:

							(Dollars in millions)
Particulars	Land	Buildings	Plant andmachinery	Computerequipment	Furniture andfixtures	Vehicles	Total
Gross carrying value as at April 1, 2020	174	1,324	621	882	381	6	3,388
Additions	9	5	4	46	3	-	67
Deletions	-	-	(1)	(1)	(1)	-	(3)
Translation difference	-	3	2	3	1	-	9
Gross carrying value as at June 30, 2020	183	1,332	626	930	384	6	3,461
Accumulated depreciation as at April 1, 2020	-	(434)	(418)	(646)	(243)	(4)	(1,745)
Depreciation	-	(13)	(16)	(27)	(11)	-	(67)
Accumulated depreciation on deletions	-	-	1	1	1	-	3
Translation difference	-	(1)	(1)	(2)	(1)	-	(5)
Accumulated depreciation as at June 30, 2020	-	(448)	(434)	(674)	(254)	(4)	(1,814)
Capital work-in progress as at June 30, 2020							178
Carrying value as at June 30, 2020	183	884	192	256	130	2	1,825
Capital work-in progress as at April 1, 2020							167
Carrying value as at April 1, 2020	174	890	203	236	138	2	1,810

The aggregate depreciation expense is included in cost of sales in the consolidated statement of comprehensive income.

The contractual commitments for capital expenditure primarily comprise of commitments for infrastructure facilities and computer equipments aggregating to $90 million and $100 million as at June 30, 2021 and March 31, 2021, respectively.

2.8 Leases

Accounting Policy

The Group as a lessee

The Group's lease asset classes primarily consist of leases for land and buildings. The group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the group assesses whether: (1) the contract involves the use of an identified asset (2) the group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the group has the right to direct the use of the asset.

At the date of commencement of the lease, the Group recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. .

Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the group changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Group as a lessor

Leases for which the group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2021

					(Dollars in millions)
Particulars			Category of ROU asset
	Land	Buildings	Vehicle	Computer	Total
Balance as of April 1, 2021	86	545	3	22	656
Additions*	-	(20)	-	6	(14)
Deletions	-	(1)	-	-	(1)
Depreciation	-	(21)	-	(2)	(23)
Translation difference	(1)	(4)	-	-	(5)
Balance as of June 30, 2021	85	499	3	26	613

* Net of adjustments on account of modifications of lease term

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2020

					(Dollars in millions)
Particulars	Category of ROU asset
	Land	Buildings	Vehicle	Computer	Total
Balance as of April 1, 2020	83	461	2	5	551
Additions	-	(2)	1	4	3
Deletions	-	(8)	-	-	(8)
Depreciation	-	(19)	-	(1)	(20)
Translation difference	-	3	-	-	3
Balance as of June 30, 2020	83	435	3	8	529

The aggregate depreciation expense on ROU assets is included in cost of sales in the consolidated Statement of Comprehensive Income.

The following is the break-up of current and non-current lease liabilities as of June 30, 2021 and March 31, 2021

	(Dollars in millions)
Particulars	As at
	June 30, 2021	March 31,2021
Current lease liabilities	100	101
Non-current lease liabilities	591	627
Total	691	728

2.9 Goodwill and intangible assets

2.9.1 Goodwill

Accounting Policy

Goodwill represents purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized immediately in the net profit in the Statement of Comprehensive Income. Goodwill is measured at cost less accumulated impairment losses.

Impairment

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGU) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGU's which benefit from the synergies of the acquisition. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU.

Total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. An impairment loss on goodwill is recognized in net profit in the Statement of Comprehensive Income and is not reversed in the subsequent period.

Following is a summary of changes in the carrying amount of goodwill:

		(Dollars in millions)
Particulars	As at
	June 30, 2021	March 31, 2021
Carrying value at the beginning	832	699
Goodwill on acquisition	-	102
Translation differences	2	31
Carrying value at the end	834	832

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition.

2.9.2 Intangibles

Accounting policy

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry and known technological advances. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use.

Impairment

Intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization) had no impairment loss been recognized for the asset in prior years.

2.10 Business combination

Accounting Policy

Business combinations have been accounted for using the acquisition method under the provisions of IFRS 3 (Revised), Business Combinations.

The purchase price is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The purchase price also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition. Contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in the Consolidated Statement of Comprehensive Income.

The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests' proportionate share of the acquiree's identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests' share of subsequent changes in equity of subsidiaries.

Business combinations between entities under common control is outside the scope of IFRS 3 (Revised), Business Combinations and is accounted for at carrying value of assets acquired and liabilities assumed.

The payments related to options issued by the Group over the non-controlling interests in its subsidiaries are accounted as financial liabilities and initially recognized at the estimated present value of gross obligations. Such options are subsequently measured at fair value in order to reflect the amount payable under the option at the date at which it becomes exercisable. In the event that the option expires unexercised, the liability is derecognised.

Transaction costs that the Group incurs in connection with a business combination such as finders' fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred.

2.11 Employees' Stock Option Plans (ESOP)

Accounting Policy

The Group recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in net profit in the consolidated statement of comprehensive income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share premium.

Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan)

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 50,000,000 equity shares. To implement the 2019 Plan, upto 45,000,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The RSUs granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

2015 Stock Incentive Compensation Plan (the 2015 Plan) :

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan (the 2015 Plan). The maximum number of shares under the 2015 plan shall not exceed 24,038,883 equity shares (this includes 11,223,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). The Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. The plan numbers mentioned above would further be adjusted for the September 2018 bonus issue.

The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant.

Controlled trust holds 15,144,907 and 15,514,732 shares as at June 30, 2021 and March 31, 2021, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2021 and March 31, 2021.

The following is the summary of grants during three months ended June 30, 2021 and June 30, 2020

		2019 Plan	2015 Plan
Particulars	Three months ended June30,		Three months ended June30,
	2021	2020	2021	2020
Equity settled RSU
KMPs	73,962	207,808	101,697	204,097
Employees other than KMP	-	-	-	24,600
Total grants	73,962	207,808	101,697	228,697

Notes on grants to KMP:

CEO & MD

Under the 2015 plan:

In accordance with the employee agreement which has been approved by the shareholders, the CEO is eligible to receive an annual grant of RSUs of fair value ₹3.25 crore (approximately $0.50 million) which will vest overtime in three equal annual installments upon the completion of each year of service from the respective grant date. Though the annual time based grants for the remaining employment term ending on March 31, 2023 have not been granted as of June 30, 2021, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with IFRS 2, Share based payments.

The Board, on April 14, 2021, based on the recommendations of the nomination and remuneration committee, in accordance with the terms of his employment agreement, approved the grant of performance-based RSUs of fair value of ₹13 crore for fiscal 2022 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. Accordingly, 96,150 performance based RSU's were granted effective May 2, 2021. .

Under the 2019 plan:

The Board, on April 14, 2021, based on the recommendations of the Nomination and Remuneration Committee, approved performancebased grant of RSUs amounting to ₹10 crore for fiscal 2022 under the 2019 Plan. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. Accordingly, 73,962 performance based RSU's were granted effective May 2, 2021.

Other KMP

Under the 2015 plan:

On April 14, 2021, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performance-based grant of 5,547 RSUs to other KMP under the 2015 Plan. The grants were made effective May 2, 2021. The performance based RSUs will vest over three years based on certain performance targets.

Break-up of employee stock compensation expense: -

		(Dollars in millions)
Particulars	Three monthsended June 30,2021	Three monthsended June 30,2020
Granted to:
KMP	2	2
Employees other than KMP	13	8
Total (1)	15	10
(1) Cash settled stock compensation expense includedin the above	1	2

The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options.

The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group.

The fair value of each equity settled award is estimated on the date of grant using the following assumptions:

	For options granted in
Particulars	Fiscal 2022-Equity SharesRSU	Fiscal 2022-ADS-RSU	Fiscal 2021-Equity SharesRSU	Fiscal 2021-ADS-RSU
Weighted average share price (₹) / ($ ADS)	1,352	18.20	1,253	18.46
Exercise price (₹)/ ($ ADS)	5.00	0.07	5.00	0.07
Expected volatility (%)	29-35	30-37	30-35	30-36
Expected life of the option (years)	1-4	1-4	1-4	1-4
Expected dividends (%)	2-3	2-3	2-3	2-3
Risk-free interest rate (%)	4-5	0.1-0.6	4-5	0.1-0.3
Weighted average fair value as on grant date (₹) / ($ ADS)	1,189	16.80	1,124	16.19

The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP.

2.12 Income taxes

Accounting policy

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the consolidated statement of comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future.

The Group offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to share premium.

Income tax expense in the consolidated statement of comprehensive income comprises:

		(Dollars in millions)
Particulars	Three monthsended June 30,2021	Three monthsended June 30,2020
Current taxes
Domestic taxes	196	147
Foreign taxes	67	27
	263	174
Deferred taxes
Domestic taxes	15	24
Foreign taxes	(10)	3
	5	27
Income tax expense	268	201

Income tax expense for the three months ended June 30, 2021 and June 30, 2020 includes reversal (net of provisions) of $2 million and $17 million, respectively. These reversals pertain to prior periods primarily on account of adjudication of certain disputed matters in favor of the Company and upon filing of tax return across various jurisdictions.

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

Particulars	Three monthsended June 30,2021	Three monthsended June 30,2020
Profit before income taxes	973	765
Enacted tax rates in India	34.94%	34.94%
Computed expected tax expense	340	267
Tax effect due to non-taxable income for Indian tax purposes	(90)	(72)
Overseas taxes	27	22
Tax provision (reversals)	(2)	(17)
Effect of differential tax rates	(4)	(4)
Effect of exempt non operating income	(3)	(1)
Effect of unrecognized deferred tax assets	-	2
Effect of non-deductible expenses	5	5
Others	(5)	(1)
Income tax expense	268	201

The applicable Indian corporate statutory tax rate for the three months ended June 30, 2021 and June 30, 2020 is 34.94% each.

Deferred income tax for the three months ended June 30, 2021 and June 30, 2020 substantially relates to origination and reversal of temporary differences.

The Company's Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company is in the process of applying for renewal of APA and currently the US taxable income is based on the Company's best estimate determined based on the expected value method.

As at June 30, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $467 million (₹3,471 crore).

As at March 31, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $473 million (₹3,462 crore).

Amount paid to statutory authorities against the tax claims amounted to $816 million (₹6,065 crore) and $834 million (₹6,095 crore) as at June 30, 2021 and March 31, 2021 respectively.

The claims against the group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of multiple issues of disallowances such as disallowance of profits earned from STP Units and SEZ Units, disallowance of deductions in respect of employment of new employees under section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes.

These matters are pending before various Appellate Authorities and the management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations.

2.13 Basic and diluted shares used in computing earnings per equity share

Accounting Policy

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

2.14 Related party transactions

Refer Note 2.20 "Related party transactions" in the Company's 2021 Annual Report on Form 20-F for the full names and other details of the Company's subsidiaries and controlled trusts.

Changes in Subsidiaries

During three months ended June 30, 2021, the following are the changes in the subsidiaries:

Simplus North America Inc., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective April 27, 2021.
Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus ANZ Pty Ltd , is under liquidation.
Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., is under liquidation.

Transactions with key management personnel

The table below describes the compensation to key management personnel which comprise directors and executive officers:

		(Dollars in millions)
Particulars	Three monthsended June 30,2021	Three monthsended June 30,2020
Salaries and other employee benefits to whole-time directors and executive officers(1)(2)	5	4
Commission and other benefits to non-executive/ independent directors	-	-
Total	5	4

(1) Total employee stock compensation expense for the three months ended June 30, 2021 and June 30, 2020 includes a charge of $ 2 million and $2 million respectively, towards key managerial personnel. (Refer note 2.11)

(2) Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.

2.15 Segment Reporting

IFRS 8 Operating Segments establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

Business segments of the Group are primarily enterprises in Financial Services and Insurance, enterprises in Manufacturing, enterprises in Retail, Consumer Packaged Goods and Logistics, enterprises in the Energy, Utilities, Resources and Services, enterprises in Communication, Telecom OEM and Media, enterprises in Hi-Tech, enterprises in Life Sciences and Healthcare and all other segments. The Financial services reportable segments has been aggregated to include the Financial Services operating segment and Finacle operating segment because of the similarity of the economic characteristics. All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public Services and revenue generated from customers located in India, Japan and China and other enterprises in public service. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centres and on-site expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group.

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

Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations

2.15.1 Business Segments

Three months ended June 30, 2021 and June 30, 2020

(Dollars in millions)

Particulars	FinancialServices(1)	Retail(2)	Communication(3)	Energy,Utilities,resourcesandServices	Manufacturing	Hi Tech	LifeSciences(4)	All OtherSegments(5)	Total
Revenues	1,250	566	462	457	366	313	256	112	3,782
	984	447	417	399	298	272	208	96	3,121
Identifiable operatingexpenses	720	271	282	238	208	187	138	65	2,109
	515	210	251	205	169	149	105	61	1,665
Allocated expenses	210	94	84	80	73	49	41	33	664
	205	99	84	82	62	44	40	32	648
Segment operating income	320	201	96	139	85	77	77	14	1,009
	264	138	82	112	67	79	63	3	808
Unallocable expenses									113
									100
Operating profit									896
									708
Other income, net (Refer Note 2.18)									84
									63
Finance cost									7
									6
Profit before Income taxes									973
									765
Income tax expense									268
									201
Net profit									705
									564
Depreciation and amortization									113
									100
Non-cash expenses other than depreciation and amortization									-
									-

(1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) All Other Segments include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

2.15.2 Significant clients

No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2021 and June 30, 2020 respectively.

2.16 Revenue from Operations

Accounting Policy:

The Group derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Group's core and digital offerings (together called as "software related services") and business process management services. Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-timeframe basis.

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties, in writing, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services ("performance obligations") to customers in an amount that reflects the consideration the Group has received or expects to receive in exchange for these products or services ("transaction price"). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved.

The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Group allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Group estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services.

The Group's contracts may include variable consideration including rebates, volume discounts and penalties. The Group includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Group's costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).

In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Group measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Group is unable to determine the standalone selling price, the Group uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses.

expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract.

Revenue from licenses where the customer obtains a "right to use" the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a "right to access" is recognized over the access period.

Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS).When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Group uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in which the services are rendered.

Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the group first evaluates whether it controls the good or service before it is transferred to the customer. The Group considers whether it has the primary obligation to fulfil the contract, inventory risk, pricing discretion and other factors to determine whether it controls the goods or service and therefore is acting as a principal or an agent.

The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them.

Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future; and (c) are expected to be recovered.

Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to cost of sales over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs.

The Group presents revenues net of indirect taxes in its consolidated statement of comprehensive income.

Revenues for the three months ended June 30, 2021 and June 30, 2020 is as follows

		(Dollars in millions)
Particulars	Three monthsended June 30,2021	Three monthsended June 30,2020
Revenue from software services	3,504	2,904
Revenue from products and platforms	278	217
Total revenue from operations	3,782	3,121

The Group has evaluated the impact of the COVID–19 pandemic on (i) the possibility of constraints in our ability to render services which may require revision of estimations of costs to complete the contract because of additional efforts; (ii) onerous obligations; (iii) penalties relating to breaches of service level agreements, and (iv) termination or deferment of contracts by customers. The Group has concluded that the impact of the COVID–19 pandemic is not significant based on these estimates. Due to the nature of the COVID-19 pandemic, the Group will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

Disaggregated revenue information

The table below presents disaggregated revenues from contracts with customers by geography and offerings for each of our business segments. The Group believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors.

Three months ended June 30, 2021 and June 30, 2020

(Dollars in millions) Particulars Financial Services(1) Retail(2) Communication(3) Energy, Utilities, resources and Services Manufacturing Hi Tech Life Sciences(4) Others(5) Total Revenues by Geography* North America 777 378 241 234 195 292 185 31 2,333 577 287 239 226 171 257 138 23 1,918 Europe 223 156 112 181 160 7 66 8 913 202 134 83 137 117 4 66 7 750 India 55 4 15 4 2 12 1 18 111 49 1 8 - 2 9 1 20 90 Rest of the world 195 28 94 38 9 2 4 55 425 156 25 87 36 8 2 3 46 363 Total 1,250 566 462 457 366 313 256 112 3,782 984 447 417 399 298 272 208 96 3,121 Revenue by offerings Digital 653 324 262 252 195 173 137 44 2,040 452 213 197 174 136 114 75 28 1,389 Core 597 242 200 205 171 140 119 68 1,742 532 234 220 225 162 158 133 68 1,732 Total 1,250 566 462 457 366 313 256 112 3,782 984 447 417 399 298 272 208 96 3,121

**(**1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

* Geographical revenues is based on the domicile of customer

Digital Services

Digital Services comprise of service and solution offerings of the Group that enable our clients to transform their businesses. These include offerings that enhance customer experience, leverage AI-based analytics and big data, engineer digital products and IoT, modernize legacy technology systems, migrate to cloud applications and implement advanced cyber security systems.

Core Services

Core Services comprise traditional offerings of the Group that have scaled and industrialized over a number of years. These primarily include application management services, proprietary application development services, independent validation solutions, product engineering and management, infrastructure management services, traditional enterprise application implementation, support and integration services.

Products & platforms

The Group also derives revenues from the sale of products and platforms including Finacle – core banking solution, Edge Suite of products, Infosys Nia - Artificial Intelligence (AI) platform which applies next-generation AI and machine learning, Panaya platform, Skava platform, Stater digital platform and Infosys McCamish- insurance platform.

Trade Receivables and Contract Balances

The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Group's Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones.

The Group's receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time.

Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore, unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified as unearned revenue.

Trade receivable and unbilled revenues are presented net of impairment in the consolidated financial position.

2.17 Unbilled revenue

		(Dollars in millions)
Particulars		As at
	June 30, 2021	March 31, 2021
Unbilled financial asset (1)	522	489
Unbilled non financial asset (2)	713	622
Total	1,235	1,111

(1) Right to consideration is unconditional and is due only after a passage of time.

(2) Right to consideration is dependent on completion of contractual milestones.

2.18 Break-up of expenses and other income, net

Accounting Policy

2.18.1 Gratuity and Pensions

The Group provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees majorly of Infosys and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Group. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). In case of Infosys BPM and EdgeVerve, contributions are made to the Infosys BPM Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law.

The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Group to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk.

The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in the Consolidated Statement of Comprehensive Income.

2.18.2 Superannuation

Certain employees of Infosys, Infosys BPM and EdgeVerve are participants in a defined contribution plan. The Group has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

2.18.3 Provident fund

Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The company contributes a portion of the contributions to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The companies have no further obligation to the plan beyond its monthly contributions.

2.18.4 Compensated absences

The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

2.18.5 Other income, net

Other income is comprised primarily of interest income, dividend income, gain/loss on investment and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.

2.18.6 Foreign Currency

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the Consolidated Statement of Comprehensive Income and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognised using the same exchange rate.

Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction.

The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the Statement of Comprehensive Income. However, when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity.

Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI).

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rate in effect at the Balance Sheet date.

2.18.7 Government grants

The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the statement of comprehensive income on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of comprehensive income over the periods necessary to match them with the related costs which they are intended to compensate.

2.18.8 Operating Profits

Operating profit of the Group is computed considering the revenues, net of cost of sales, selling and marketing expenses and administrative expenses.

The table below provides details of break-up of expenses:

Cost of sales

		(Dollars in millions)
Particulars	Three months ended
	June 30, 2021	June 30, 2020
Employee benefit costs	1,849	1,591
Depreciation and amortization	113	100
Travelling costs	16	13
Cost of technical sub-contractors	333	214
Cost of software packages for own use	45	38
Third party items bought for service delivery to clients	128	79
Short term leases	1	1
Consultancy and professional charges	3	1
Communication costs	10	12
Repairs and maintenance	12	17
Provision for post-sales client support	-	1
Others	(1)	4
Total	2,509	2,071

Selling and marketing expenses

	(Dollars in millions)
Particulars	Three months ended
	June 30, 2021	June 30, 2020
Employee benefit costs	144	137
Travelling costs	1	1
Branding and marketing	15	8
Consultancy and professional charges	6	2
Communication costs	1	-
Others	2	3
Total	169	151

Administrative expenses

(Dollars in millions)

Particulars	Three months ended
	June 30, 2021	June 30, 2020
Employee benefit costs	72	66
Consultancy and professional charges	44	31
Repairs and maintenance	29	31
Power and fuel	5	5
Communication costs	9	9
Travelling costs	1	2
Rates and taxes	8	7
Short-term leases	1	2
Insurance charges	6	4
Impairment loss recognized/(reversed) under expected credit loss model	6	13
Contributions towards Corporate Social Responsibility	20	16
Others	7	5
Total	208	191

Other income, net

	(Dollars in millions)
ParticularsThree months ended
	June 30, 2021	June 30, 2020
Interest income on financial assets carried at amortized cost	45	38
Interest income on financial assets carried at fair value through other comprehensive income	21	12
Gain/(loss) on investments carried at fair value through profit or loss	3	3
Gain/(loss) on investments carried at fair value through other comprehensive income	-	4
Interest income on income tax refund	2	-
Exchange gains / (losses) on forward and options contracts	(10)	6
Exchange gains / (losses) on translation of foreign currency assets and liabilities	17	(4)
Others	6	4
Total	84	63

2.19 Equity

Accounting policy

Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects.

Treasury Shares

When any entity within the Group purchases the company's ordinary shares, the consideration paid including any directly attributable incremental cost is presented as a deduction from total equity, until they are cancelled, sold or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/ from Share premium.

Description of reserves

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

Share premium

The amount received in excess of the par value has been classified as share premium. Additionally, share-based compensation recognized in net profit in the consolidated statement of comprehensive income is credited to share premium. Amounts have been utilized for bonus issue and share buyback from share premium account.

Special Economic Zone Re-investment reserve

The Special Economic Zone Re-investment reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961.

Capital Redemption Reserve

In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve.

Other components of equity

Other components of equity include currency translation, remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments, net of taxes.

Cash flow hedge reserve

2.19.1 Capital Allocation Policy

Effective fiscal 2020, the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any. Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes.

Update on buyback announced in April 2021:

In line with the capital allocation policy, the Board, at its meeting on April 14, 2021, approved the buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to ₹9,200 crore (approximately $1,227 million*) (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ₹1,750 per share (approximately $23.3 per share*) (Maximum Buyback Price), subject to shareholders' approval in the ensuing General Meeting.

*USD-INR rate of 75.00

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021. At the Maximum buyback price and the Maximum buyback size the indicative maximum number of equity shares bought back would be 5,25,71,428 Equity Shares (Maximum buyback shares) comprising approximately 1.23% of the paid-up equity share capital of the Company as of March 31, 2021 and as on June 22, 2021 the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and is expected to be completed on or before December 24, 2021. During the quarter ended June 30, 2021 43,90,000 equity shares were purchased from the stock exchange which includes 11,02,000 shares which have been purchased but not extinguished as of June 30, 2021 and 11,02,000 shares which have been purchased but have not been settled and therefore not extinguished as of June 30, 2021. In accordance with section 69 of the Companies Act, 2013, during the quarter ended June 30, 2021 , the Company has created 'Capital Redemption Reserve' amounting to less than one million equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2021, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

2.19.2 Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits.

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable withholding income taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

Amount of per share dividend recognized as distribution to equity shareholders:

	Three months ended June 30, 2021			Three months ended June 30, 2020
Particulars	in ₹	in US Dollars	in ₹	in US Dollars
Final dividend for fiscal 2021	15.00	0.20	-	-
Final dividend for fiscal 2020	-	-	9.50	0.13

The Board of Directors in their meeting on April 14, 2021 recommended a final dividend of ₹15/- per equity share (approximately $0.20 per equity share) for the financial year ended March 31, 2021. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 19, 2021 and resulted in a net cash outflow of $861 million excluding dividend paid on treasury shares.

2.19.3 Share capital and share premium

The Company has only one class of shares referred to as equity shares having a par value of ₹5/- each. 15,144,907 shares and 15,514,732 shares were held by controlled trust, as at June 30, 2021 and March 31, 2021, respectively.

for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Bengaluru July 14, 2021

Chartered Accountants Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Report on the Audit of the Interim Condensed Consolidated Financial Statements

Opinion

We have audited the accompanying interim condensed consolidated financial statements of INFOSYS LIMITED (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at June 30, 2021, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the three months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

Basis for Opinion

We conducted our audit of the interim condensed consolidated financial statements in accordance with the Standards on Auditing ("SA"s) issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the ICAI, and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the interim condensed consolidated financial statements.

Management's Responsibilities for the Interim Condensed Consolidated Financial Statements

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with IAS 34 as issued by the IASB. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records for safeguarding assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of

adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the interim condensed consolidated financial statements by the Directors of the Company, as aforesaid.

In preparing the interim condensed consolidated financial statements, the respective Boards of Directors of the companies included in the Group are responsible for assessing the ability of the respective entitiesto continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intend to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.

The respective Boards of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the interim condensed consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's internal financial controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the interim condensed consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.

However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the interim condensed consolidated financial statements, including the disclosures, and whether the interim condensed consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the interim condensed consolidated financial statements of which we are the independent auditors.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in Indian Rupee for the three months ended June 30, 2021

Index Page No.

Condensed Consolidated Balance Sheet……………………………………………………………………………….. 1 Condensed Consolidated Statement of Comprehensive Income……………………………………………………….. 2 Condensed Consolidated Statement of Changes in Equity ……………………………………..…………………………………….. 3 Condensed Consolidated Statement of Cash Flows………………………………………………………………………. 5 Overview and notes to the financial statements 1. Overview 1.1 Company overview …………………………………………………….……………………………………………………. 6 1.2 Basis of preparation of financial statements …………………………………………………….……………………………………………………. 6 1.3 Basis of consolidation……………………………………………………………………………… 6 1.4 Use of estimates and judgments…………………………………………………………………. 6 1.5 Critical accounting estimates……………………………………………………………………… 6 1.6 Recent accounting pronouncements…………………………………………………………….. 7 2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Cash and cash equivalents ……………………………………………………………………….. 8 2.2 Investments…………………………………………………………………………………………. 8 2.3 Financial instruments………………………………………………………………………………. 10 2.4 Prepayments and other assets………………………………………………………………………. 13 2.5 Other liabilities……………………………………………………………………………………….. 14 2.6 Provisions and other contingencies…………………………………………………………………………………………… 14 2.7 Property, plant and equipment……………………………………………………………………….. 16 2.8 Leases……………………..……………………………………………………………………….. 17 2.9 Goodwill and Intangible Assets...………………………………………………………… 18 2.10 Business combinations ………………………………...………………………………………. 20 2.11 Employees' Stock Option Plans (ESOP)………………………………………………………………………… 21 2.12 Income Taxes……………………………………………………………………………………. 23 2.13 Basic and diluted shares used in computing earnings per equity share……………………………………………………………………………………. 23 2.14 Related party transactions……………………………………………………………………………………………….. 24 2.15 Segment reporting…………………………………………………………………………………………25 2.16 Revenue from Operations…………………………………………………………………………………..26 2.17 Unbilled Revenue……………………………………………………………………………….. 28 2.18 Break-up of expenses and other income, net………………...…………………………………………………………… 29 2.19 Equity…………………….………………………………………………………………………… 32

	(In ₹ crore except equity share data)
Condensed Consolidated Balance Sheet as at	Note	June 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	2.1	21,339	24,714
Current investments	2.2	4,664	2,342
Trade receivables		20,421	19,294
Unbilled revenue	2.17	8,456	7,527
Prepayments and other current assets	2.4	6,848	6,668
Derivative financial instruments	2.3	64	188
Total current assets		61,792	60,733
Non-current assets
Property, plant and equipment	2.7	13,560	13,623
Right-of-use assets	2.8	4,560	4,794
Goodwill	2.9	6,197	6,079
Intangible assets		2,024	2,072
Non-current investments	2.2	11,989	11,863
Unbilled revenue	2.17	722	594
Deferred income tax assets	2.12	1,015	1,098
Income tax assets	2.12	5,801	5,811
Other non-current assets	2.4	1,826	1,719
Total non-current assets		47,694	47,653
Total assets		109,486	108,386
LIABILITIES AND EQUITY
Current liabilities
Trade payables		2,668	2,645
Lease liabilities	2.8	740	738
Derivative financial instruments	2.3	50	56
Current income tax liabilities	2.12	2,896	2,146
Unearned revenue		4,278	4,050
Employee benefit obligations		2,257	2,020
Provisions	2.6	726	713
Other current liabilities	2.5	15,923	11,497
Total current liabilities		29,538	23,865
Non-current liabilities
Lease liabilities	2.8	4,391	4,587
Deferred income tax liabilities	2.12	840	875
Employee benefit obligations		95	97
Other non-current liabilities	2.5	2,309	2,180
Total liabilities		37,173	31,604
Equity
Share capital - ₹5 par value 480,00,00,000 (480,00,00,000) equity shares authorized, issued and
outstanding 424,17,36,856(424,51,46,114) equity shares fully paid up, net of 1,51,44,907	2.19	2,122	2,124
(1,55,14,732) treasury shares as at June 30, 2021 (March 31, 2021)
Share premium		1,107	993
Retained earnings		59,977	65,397
Cash flow hedge reserves		15	10
Other reserves		6,915	6,385
Capital redemption reserve		113	111

Other components of equityTotal equity attributable to equity holders of the Company		1,622	1,331
		71,871	76,351
Non-controlling interests		442	431
Total equity		72,313	76,782
Total liabilities and equity		109,486	108,386

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm's Registration No: 117366W/ W-100018

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer Membership No. 039826 and Managing Director and Whole-time Director

A.G.S. Manikantha Company Secretary

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

		(In ₹ crore except equity share and per equity share data)
Condensed Consolidated Statement of Comprehensive Income for the		Three months ended June 30,
	Note	2021	2020
Revenues	2.16	27,896	23,665
Cost of sales	2.18	18,506	15,703
Gross profit		9,390	7,962
Operating expenses
Selling and marketing expenses	2.18	1,248	1,146
Administrative expenses	2.18	1,539	1,451
Total operating expenses		2,787	2,597
Operating profit		6,603	5,365
Other income, net	2.18	622	475
Finance cost		49	48
Profit before income taxes		7,176	5,792
Income tax expense	2.12	1,975	1,520
Net profit		5,201	4,272
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		(33)	147
Equity instruments through other comprehensive income, net		1	(1)
		(32)	146
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		5	(6)
Exchange differences on translation of foreign operations		290	164
Fair value changes on investments, net		38	54
		333	212
Total other comprehensive income/(loss), net of tax		301	358

Total comprehensive income		5,502	4,630

Profit attributable to:
Owners of the Company		5,195	4,233
Non-controlling interests		6	39
		5,201	4,272
Total comprehensive income attributable to:
Owners of the Company		5,491	4,586
Non-controlling interests		11	44
		5,502	4,630
Earnings per equity shareEquity shares of par value ₹5/- each
Basic (₹)		12.24	9.98
Diluted (₹)		12.21	9.97
Weighted average equity shares used in computing earnings per equity share	2.13
Basic		4,245,516,974	4,241,101,049
Diluted		4,253,310,685	4,246,278,846

The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached

Chartered Accountants Firm's Registration No: 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer

Membership No. 039826 and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Mumbai Bengaluru July 14, 2021 July 14, 2021

(In ₹ crore except equity share data)

Condensed Consolidated Statement of Changes in Equity	Number ofShares(1)	Sharecapital	Sharepremium	Retainedearnings	Other(2)reserves	Capitalredemptionreserve	Othercomponents ofequity	Cash flowhedgereserve	Total equityattributable to equityholders of theCompany	Noncontrollinginterest	Total equity
Balance as at April 1, 2020	4,240,753,210	2,122	600	57,506	4,070	111	1,056	(15)	65,450	394	65,844
Changes in equity for the three months ended June 30, 2020
Net profit	-	-	-	4,233	-	-	-	-	4,233	39	4,272
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	147	-	147	-	147
Fair value changes on derivatives designated as Cash flow hedge*	-	-	-	-	-	-	-	(6)	(6)	-	(6)
Exchange differences on translation of foreign operations	-	-	-	-	-	-	159	-	159	5	164
Equity instruments through other comprehensive income*	-	-	-	-	-	-	(1)	-	(1)	-	(1)
Fair value changes on investments, net*	-	-	-	-	-	-	54	-	54	-	54
Total comprehensive income for the period	-	-	-	4,233	-	-	359	(6)	4,586	44	4,630
Shares issued on exercise of employee stock options (Refer to note 2.11)	592,183	-	3	-	-	-	-	-	3	-	3
Employee stock compensation expense (refer to note 2.11)	-	-	63	-	-	-	-	-	63	-	63
Transfer on account of options not exercised	-	-	(1)	1	-	-	-	-	-	-
Transferred to other reserves	-	-	-	(731)	731	-	-	-	-	-	-
Transferred from other reserves on utilization	-	-	-	314	(314)	-	-	-	-	-	-
Dividends (including dividend distribution tax)#	-	-	-	(4,029)	-	-	-	-	(4,029)	-	(4,029)
Balance as at June 30, 2020	4,241,345,393	2,122	665	57,294	4,487	111	1,415	(21)	66,073	438	66,511

(In ₹ crore except equity share data)

Condensed Consolidated Statement of Changes in Equity	Number ofShares(1)	Sharecapital	Sharepremium	Retainedearnings	Other(2)reserves	Capitalredemptionreserve	Othercomponents ofequity	Cash flowhedgereserve	Total equityattributable to equityholders of theCompany	Noncontrollinginterest	Total equity
Balance as at April 1, 2021	4,245,146,114	2,124	993	65,397	6,385	111	1,331	10	76,351	431	76,782
Changes in equity for the three months ended June 30, 2021
Net profit	-	-	-	5,195	-	-	-	-	5,195	6	5,201
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	(33)	-	(33)	-	(33)
Equity instruments through other comprehensive income*	-	-	-	-	-	-	1	-	1	-	1
Fair value changes on derivatives designated as cash flow hedge*	-	-	-	-	-	-	-	5	5	-	5
Exchange differences on translation of foreign operations	-	-	-	-	-	-	285	-	285	5	290
Fair value changes on investments, net*	-	-	-	-	-	-	38	-	38	-	38
Total comprehensive income for the period	-	-	-	5,195	-	-	291	5	5,491	11	5,502
Buyback of equity shares (Refer to note 2.19 and 2.5)**	(4,390,000)	(2)	-	(3,697)	-	-	-	-	(3,699)	-	(3,699)
Transaction cost relating to buyback*	-	-	-	(17)	-	-	-	-	(17)	-	(17)
Amount transferred to capital redemption reserve upon buyback	-	-	-	(2)	-	2	-	-	-	-	-
Shares issued on exercise of employee stock options (Refer to note 2.11)	980,742	-	8	-	-	-	-	-	8	-	8
Employee stock compensation expense (Refer to note 2.11)	-	-	103	-	-	-	-	-	103	-	103
Income tax benefit arising on exercise of stock options (Refer to note 2.12)	-	-	3	-	-	-	-	-	3	-	3
Transferred to other reserves	-	-	-	(748)	748	-	-	-	-	-	-
Transferred from other reserves on utilization	-	-	-	218	(218)	-	-	-	-	-	-
Dividends#	-	-	-	(6,369)	-	-	-	-	(6,369)	-	(6,369)
Balance as at June 30, 2021	4,241,736,856	2,122	1,107	59,977	6,915	113	1,622	15	71,871	442	72,313

* net of tax

** Including tax on buyback ` 699 crore

# net of treasury shares

(1) excludes treasury shares of 15,144,907 as at June 30, 2021, 15,514,732 as at April 1, 2021, 17,809,235 as at June 30, 2020 and 18,239,356 as at April 1, 2020, held by consolidated trust.

(2) Represents the Special Economic Zone Re-investment reserve created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA(2) of the Income Tax Act, 1961.

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached

Chartered Accountants for Deloitte Haskins & Sells LLP

Firm's Registration No: 117366W/ W-100018

for and on behalf of the Board of Directors of Infosys Limited

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Membership No. 039826 and Managing Director and Whole-time Director

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

A.G.S. Manikantha Company Secretary

Condensed Consolidated Statement of Cash Flows

Accounting Policy

			(In ₹ crore)
Particulars		Three months ended June 30,
	Note	2021	2020
Operating activities:
Net Profit		5,201	4,272
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.18	829	756
Income tax expense	2.12	1,975	1,520
Finance cost		49	48
Interest and dividend income		(199)	(128)
Effect of exchange rate changes on assets and liabilities, net		115	29
Impairment loss under expected credit loss model		44	99
Stock compensation expense	2.11	110	76
Other adjustments		(90)	14
Changes in working capital
Trade receivables and unbilled revenue		(2,242)	(436)
Prepayments and other assets		307	104
Trade payables		22	(89)
Unearned revenue		228	113
Other liabilities and provisions		1,681	280
Cash generated from operations		8,030	6,658
Income taxes paidNet cash generated by operating activities		(1,161)6,869	(717)5,941
Investing activities:
Expenditure on property, plant and equipment and intangibles		(506)	(417)
Deposits placed with corporation		(166)	(121)
Interest and dividend received		177	105
Payment of contingent consideration pertaining to acquisition of business		(53)	(150)
Escrow and other deposits pertaining to Buyback	2.4	(320)	-
Payments to acquire Investments
- Quoted debt securities		(404)	(3,076)
- Liquid mutual fund units and fixed maturity plan securities		(11,781)	(5,050)
- Certificates of deposit		(249)	-
- Other investments		(3)	(1)
Proceeds on sale of investments
- Certificates of deposit		-	250
- Quoted debt securities		50	1,167
- Liquid mutual fund units and fixed maturity plan securities		10,012	5,785
- Other investments		-	22
Other payments		(22)	-
Other receipts		12	12
Net cash (used)/generated in investing activities		(3,253)	(1,474)
Financing activities:
Payment of lease liabilities		(208)	(139)

Payment of dividends		(6,370)	-
Other receipts		45	-
Buyback of equity shares including transaction cost	2.19	(532)	-
Shares issued on exercise of employee stock options		8	3
Net cash used in financing activities		(7,057)	(136)
Effect of exchange rate changes on cash and cash equivalents		66	59
Net increase/(decrease) in cash and cash equivalents		(3,441)	4,331
Cash and cash equivalents at the beginning of the period	2.1	24,714	18,649
Cash and cash equivalents at the end of the period	2.1	21,339	23,039
Supplementary information:
Restricted cash balance	2.1	528	387
Closing cash and cash equivalents as per Consolidated Statement of Cash flows		21,339	23,039
Less: Earmarked bank balance for dividend		-	(4,046)
Closing cash and cash equivalents as per Consolidated Balance Sheet	2.1	21,339	18,993

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached

Chartered Accountants Firm's Registration No: 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Notes to the Interim Condensed Consolidated Financial Statements

1. Overview

1.1 Company overview

Infosys together with its subsidiaries and controlled trusts is herein after referred to as the "Group".

The Company is a public limited company incorporated and domiciled in India and has its registered office at Bengaluru, Karnataka, India. The Company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company's American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE).

The Group's interim condensed consolidated financial statements are authorized for issue by the Company's Board of Directors on July 14, 2021.

1.2 Basis of preparation of financial statements

These interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on accrual basis except for certain financial instruments which have been measured at fair values. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's consolidated financial statements under IFRS in indian rupee for the year ended March 31, 2021. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Basis of consolidation

Infosys consolidates entities which it owns or controls. The interim condensed consolidated financial statements comprise the financial statements of the Company, its controlled trusts and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases.

The financial statements of the Group Companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. The financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the Company, are excluded.

1.4 Use of estimates and judgments

The preparation of the financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in the financial statements have been disclosed in Note 1.5. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements.

Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID 19):

The Group has considered the possible effects that may result from the COVID-19 pandemic in the preparation of these interim condensed consolidated financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of the COVID-19 pandemic, the Group has, at the date of approval of these condensed financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 pandemic on the Group's financial statements may differ from that estimated as at the date of approval of these interim condensed consolidated financial statements.

1.5 Critical accounting estimates and judgments

a. Revenue recognition

Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

b. Income taxes

The Group's two major tax jurisdictions are India and the U.S., though the Company also files tax returns in other overseas jurisdictions.

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

c. Business combinations and intangible assets

d. Property, plant and equipment

e. Impairment of Goodwill

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGUs) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represent the lowest level at which goodwill is monitored for internal management purposes.

f. Leases

g. Allowance for credit losses on receivables and unbilled revenue

The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considered current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates. In calculating expected credit loss, the Group has also considered credit reports and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID -19.

1.6 Recent accounting pronouncements

New and revised IFRS Standards in issue but not yet effective:

Amendments to IAS 16 Property, Plant and Equipment Proceeds before Intended Use Amendments to IAS 37 Onerous Contracts Cost of Fulfilling a Contract Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors Definition of Accounting Estimates Amendments to IAS 1 Presentation of Financial Statements Disclosure of Accounting Policies Amendments to IAS 12 Income Taxes Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Amendments to IAS 16

Amendments to IAS 37

On May 14, 2020 IASB has issued Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) which specify that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).

Amendments to IAS 8

Amendments to IAS 1

Amendments to IAS 12

2. Notes to the Interim Condensed Consolidated Financial Statements

2.1 Cash and cash equivalents

Cash and cash equivalents consist of the following:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Cash and bank deposits	16,875	20,069
Deposits with financial institutions	4,464	4,645
Total Cash and cash equivalents	21,339	24,714

Cash and cash equivalents as at June 30, 2021 and March 31, 2021 include restricted cash and bank balances of ₹528 crore and ₹504 crore, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the Company and bank balances held as margin money deposits against guarantees.

2.2 Investments

The carrying value of the investments are as follows:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
(i) Current
Amortised Cost
Quoted debt securities	20	-
Fair Value through profit or loss
Liquid mutual fund units	3,294	1,500
Fair Value through other comprehensive income
Quoted Debt Securities	1,100	842
Certificates of deposit	250	-
Total current investments	4,664	2,342
(ii) Non-current
Amortised Cost
Quoted debt securities	2,130	2,152
Fair Value through other comprehensive income
Quoted debt securities	9,594	9,452
Unquoted equity and preference securities	169	167
Fair Value through profit or loss
Unquoted Preference securities	11	11
Unquoted compulsorily convertible debentures	7	7
Others(1)	78	74
Total non-current investments	11,989	11,863
Total investments	16,653	14,205
Investments carried at amortised cost	2,150	2,152
Investments carried at fair value through other comprehensive income	11,113	10,461
Investments carried at fair value through profit or loss	3,390	1,592

(1) Uncalled capital commitments outstanding as at June 30, 2021 and March 31, 2021 was ₹40 crore and ₹42 crore, respectively.

Refer note 2.3 for accounting policies on financial instruments.

Method of fair valuation:			(In ₹ crore)
Class of investment	Method		Fair value as at
		June 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	3,294	1,500
Quoted debt securities- carried at amortized cost	Quoted price and market observable inputs	2,554	2,536
Quoted debt securities- carried at fair value through othercomprehensive income	Quoted price and market observable inputs	10,694	10,294
Certificates of deposit	Market observable inputs	250	-
Unquoted equity and preference securities - carried at fair valuethrough other comprehensive income	Discounted cash flows method, Marketmultiples method, Option pricing model	169	167
Unquoted equity and preference securities - carried at fair valuethrough profit or loss	Discounted cash flows method, Marketmultiples method, Option pricing model	11	11
Unquoted compulsorily convertible debentures - carried at fairvalue through profit and loss	Discounted cash flows method	7	7
Others	Discounted cash flows method, Marketmultiples method, Option pricing model	78	74
Total		17,057	14,589

Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

2.3 Financial instruments

Accounting Policy

2.3.1 Initial recognition

The Group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

2.3.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income (FVOCI)

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments

b. Derivative financial instruments

The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

(i) Financial assets or financial liabilities, at fair value through profit or loss

This category includes derivative financial assets or liabilities which are not designated as hedges.

Although the Group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability, at fair value through profit or loss.

(ii) Cash flow hedge

The Group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions.

2.3.3 Derecognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IFRS 9. A financial liability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.3.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

2.3.5 Impairment

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at June 30, 2021 were as follows:

							(In ₹ crore)
	Amortisedcost	Financial assets / liabilities atfair value through profit or loss		Financial assets / liabilities atfair value through OCI		Total carrying value	Total fair value
Particulars		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignatedupon initialrecognition	Mandatory
Assets:

Cash and cash equivalents (Refer to Note 2.1)	21,339	-	-	-	-	21,339	21,339
Investments (Refer to Note 2.2)
Liquid mutual fund units	-	-	3,294	-	-	3,294	3,294
Quoted debt securities	2,150	-	-	-	10,694	12,844	13,248 (1)
Certificates of deposit	-	-	-	-	250	250	250
Unquoted equity and preference securities	-	-	11	169	-	180	180
Unquoted compulsorily convertible debentures	-	-	7	-	-	7	7
Unquoted investment others	-	-	78	-	-	78	78
Trade receivables	20,421	-	-	-	-	20,421	20,421
Unbilled revenues (Refer to Note 2.17)(3)	3,877	-	-	-	-	3,877	3,877
Prepayments and other assets (Refer to Note 2.4)	4,509	-	-	-	-	4,509	4,405 (2)
Derivative financial instruments	-	-	31	-	33	64	64
Total	52,296	-	3,421	169	10,977	66,863	67,163

Liabilities:
Trade payables	2,668	-	-	-	-	2,668	2,668
Lease liabilities	5,131	-	-	-	-	5,131	5,131
Derivative financial instruments	-	-	47	-	3	50	50
Financial liability under option arrangements	-	-	713	-	-	713	713
Other liabilities including contingent consideration (Refer to note 2.5)	13,560	-	93	-	-	13,653	13,653
Total	21,359	-	853	-	3	22,215	22,215

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of ₹104 crore.

(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows:

							(In ₹ crore)
	Amortisedcost	Financial assets/ liabilities at fairvalue through profit or loss		Financial assets/liabilities at fairvalue through OCI		Total carrying value	Total fair value
Particulars		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignatedupon initialrecognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.1)	24,714	-	-	-	-	24,714	24,714
Investments (Refer to Note 2.2)
Liquid mutual fund units	-	-	1,500	-	-	1,500	1,500
Fixed maturity plan securities	-	-	-	-	-	-	-
Quoted debt securities	2,152	-	-	-	10,294	12,446	12,830 (1)
Unquoted equity and preference securities	-	-	11	167	-	178	178
Unquoted compulsorily convertible debentures	-	-	7	-	-	7	7
Unquoted investments others	-	-	74	-	-	74	74
Trade receivables	19,294	-	-	-	-	19,294	19,294
Unbilled revenue (Refer to Note 2.17)(3)	3,572	-	-	-	-	3,572	3,572
Prepayments and other assets (Refer to Note 2.4)	3,982	-	-	-	-	3,982	3,890 (2)
Derivative financial instruments	-	-	163	-	25	188	188
Total	53,714	-	1,755	167	10,319	65,955	66,247
Liabilities:
Trade payables	2,645	-	-	-	-	2,645	2,645
Lease liabilities	5,325	-	-	-	-	5,325	5,325
Derivative financial instruments	-	-	56	-	-	56	56
Financial liability under option arrangements	-	-	693	-	-	693	693
Other liabilities including contingent consideration(Refer to note 2.5)	9,877	-	161	-	-	10,038	10,038
Total	17,847	-	910	-	-	18,757	18,757

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of ₹92 crore.

(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities as at June 30, 2021:

(In ₹ crore)

Particulars	As at June 30,	Fair value measurement at end of the reporting period using
	2021	Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.2)	3,294	3,294	-	-
Investments in quoted debt securities (Refer to Note 2.2)	13,248	10,266	2,982	-
Investments in certificates of deposit (Refer to Note 2.2)	250	-	250	-
Investments in unquoted equity and preference securities (Refer to Note 2.2)	180	-	-	180
Investments in unquoted compulsorily convertible debentures (Refer to Note 2.2)	7	-	-	7
Investments in unquoted investments others (Refer to Note 2.2)	78	-	-	78
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	64	-	64	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	50	-	50	-
Financial liability under option arrangements (Refer to Note 2.5)	713	-	-	713
Liability towards contingent consideration (Refer to Note 2.5)*	93	-	-	93
*Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the three months ended June 30, 2021, quoted debt securities of ₹ 537 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of ₹ 2,053 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2021:

				(In ₹ crore)
Particulars	As at March31, 2021	Fair value measurement at end of the reporting period using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual fund units (Refer to Note 2.2)	1,500	1,500	-	-
Investments in quoted debt securities (Refer to Note 2.2)	12,830	11,374	1,456	-
Investments in unquoted equity and preference securities(Refer to Note 2.2)	178	-	-	178
Investments in unquoted compulsorily convertible debentures (Refer to Note 2.2)	7	-	-	7
Investments in unquoted investments others (Refer to Note 2.2)	74	-	-	74
Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	188	-	188	-
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward and option
contracts	56	-	56	-
Financial liability under option arrangements (Refer to Note 2.5)	693	-	-	693
Liability towards contingent consideration (Refer to Note 2.5)*	161	-	-	161
*Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the year ended March 31, 2021, quoted debt securities of ₹107 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of ₹1,177 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

	(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021

Current
Rental deposits	58	30
Security deposits	6	6
Loans to employees	191	159
Prepaid expenses(1)	1,176	1,160
Interest accrued and not due	513	620
Withholding taxes and others(1)	1,646	2,091
Advance payments to vendors for supply of goods(1)	233	141
Deposit with corporations*	2,162	2,016
Escrow and other desposits pertaining to buyback (refer to note 2.19)	320	-
Deferred contract cost(1)	75	65
Net investment in sublease of right of use asset	39	38
Other non financial assets	1	3
Other financial assets	428	339
Total Current prepayment and other assets	6,848	6,668
Non-current
Loans to employees	46	32
Deposit with corporations*	61	42
Rental deposits	187	217
Security deposits	49	49
Withholding taxes and others(1)	705	705
Deferred contract cost(1)	228	143
Prepaid expenses(1)	78	78
Net investment in sublease of right of use asset (refer to note 2.8)	348	350
Defined benefit plan assets(1)	23	19
Other financial assets	101	84
Total Non- current prepayment and other assets	1,826	1,719
Total prepayment and other assets	8,674	8,387
Financial assets in prepayments and other assets	4,509	3,982

(1) Non financial assets

Withholding taxes and others primarily consist of input tax credits and Cenvat recoverable from Government of India.

*Deposit with corporations represents amounts deposited to settle certain employee-related obligations as and when they arise during the normal course of business.

2.5 Other liabilities

Other liabilities comprise the following :

	(In ₹ crore)
	As at
Particulars	June 30, 2021	March 31, 2021
Current
Accrued compensation to employees	4,124	4,019
Accrued expenses	5,448	4,475
Withholding taxes and others(1)	2,381	2,170
Retention money	13	13
Liabilities of controlled trusts	211	199
Deferred income - government grants(1)	3	3
Accrued defined benefit plan liability (1)	3	6
Liability towards contingent consideration	25	75
Capital Creditors	325	371
Financial liability relating to buyback (2) (Refer note 2.19)	2,485	-
Tax on buyback (1) (Refer note 2.19)	699	-
Other non-financial liabilities (1)	4	4
Other financial liabilities	202	162
Total current other liabilities	15,923	11,497
Non-current
Liability towards contingent consideration	68	86
Accrued expenses	637	569
Withholding taxes and others(1)	370	364
Accrued defined benefit plan liability (1)	331	324
Accrued compensation to employees	9	-
Deferred income - government grants(1)	58	57
Deferred income(1)	15	17
Other financial liabilities	106	69
Other non-financial liabilities(1)	2	1
Financial liability under option arrangements	713	693
Total non-current other liabilities	2,309	2,180
Total other liabilities	18,232	13,677
Financial liabilities included in other liabilities	14,366	10,731
Financial liability towards contingent consideration on an undiscounted basis	110	181

(1) Non financial liabilities

Accrued expenses primarily relates to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance.

2.6 Provisions and other contingencies

Accounting Policy

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Post sales client support

The Group provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in cost of sales. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

Onerous contracts

Provisions comprise the following:

		(In ₹ crore)
	As at
Particulars	June 30, 2021	March 31, 2021
Provision for post sales client support and other provisions	726	713
	726	713

Provision for post sales client support represents cost associated with providing post sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year.

Provision for post sales client support and other provisions is included in cost of sales in the consolidated statement of comprehensive income.

As at June 30, 2021 and March 31, 2021 claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities - Refer to Note 2.12) amounted to ₹606 crore and ₹599 crore respectively.

Legal proceedings

2.7 Property, plant and equipment

Accounting Policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Building	22-25 years
Plant and machinery(1)	5 years
Computer equipment	3-5 years
Furniture and fixtures	5 years
Vehicles	5 years
Leasehold improvements	Lower of useful life of the asset or lease term

(1) Includes solar plant with a useful life of 20 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of assets not ready to use before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the consolidated statement of comprehensive income when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in net profit in the consolidated statement of comprehensive income.

Impairment

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2021:

							(In ₹ crore)
Particulars	Land	Buildings	Plant andmachinery	Computerequipment	Furniture andfixtures	Vehicles	Total
Gross carrying value as at April 1, 2021	1,397	10,565	4,963	7,639	3,043	44	27,651
Additions	1	152	54	336	43	-	586
Deletions	-	-	(5)	(52)	(11)	-	(68)
Translation difference	-	28	6	17	14	-	65
Gross carrying value as at June 30, 2021	1,398	10,745	5,018	7,940	3,089	44	28,234
Accumulated depreciation as at April 1, 2021	-	(3,675)	(3,599)	(5,636)	(2,149)	(32)	(15,091)
Depreciation	-	(101)	(102)	(247)	(87)	(1)	(538)
Accumulated depreciation on deletions	-	-	5	52	11	-	68
Translation difference	-	(4)	(3)	(13)	(12)	-	(32)
Accumulated depreciation as at June 30, 2021	-	(3,780)	(3,699)	(5,844)	(2,237)	(33)	(15,593)
Capital work-in progress as at April 1, 2021							1,063
Carrying value as at April 1, 2021	1,397	6,890	1,364	2,003	894	12	13,623
Capital work-in progress as at June 30, 2021							919
Carrying value as at June 30, 2021	1,398	6,965	1,319	2,096	852	11	13,560

Following are the changes in the carrying value of property, plant and equipment for the three months ended June 30, 2020:

							(In ₹ crore)
Particulars	Land	Buildings	Plant andmachinery	Computerequipment	Furniture andfixtures	Vehicles	Total
Gross carrying value as at April 1, 2020	1,316	10,016	4,701	6,676	2,887	45	25,641
Additions	69	39	31	346	25	-	510
Deletions	-	-	(7)	(10)	(7)	-	(24)
Translation difference	-	2	-	7	2	-	11
Gross carrying value as at June 30, 2020	1,385	10,057	4,725	7,019	2,907	45	26,138
Accumulated depreciation as at April 1, 2020	-	(3,284)	(3,161)	(4,885)	(1,848)	(28)	(13,206)
Depreciation	-	(95)	(120)	(206)	(88)	(2)	(511)
Accumulated depreciation on deletions	-	-	7	10	7	-	24
Translation difference	-	(1)	-	(4)	-	-	(5)
Accumulated depreciation as at June 30, 2020	-	(3,380)	(3,274)	(5,085)	(1,929)	(30)	(13,698)
Capital work-in progress as at April 1, 2020							1,264
Carrying value as at April 1, 2020	1,316	6,732	1,540	1,791	1,039	17	13,699
Capital work-in progress as at June 30, 2020							1,337
Carrying value as at June 30, 2020	1,385	6,677	1,451	1,934	978	15	13,777

The aggregate depreciation expense is included in cost of sales in the consolidated statement of comprehensive income.

The contractual commitments for capital expenditure primarily comprises of commitments for infrastructure facilities and computer equipment's aggregating to ₹666 crore and ₹733 crore as at June 30, 2021 and March 31, 2021, respectively.

2.8 Leases

Accounting Policy

The Group as a lessee

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Group as a lessor

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2021:

					(In ₹ crore)
Particulars		Total
	Land	Buildings	Vehicles	Computers
Balance as of April 1, 2021	630	3,984	19	161	4,794
Additions*	-	(141)	1	46	(94)
Deletions	-	(4)	-	-	(4)
Depreciation	(2)	(155)	(2)	(13)	(172)
Translation difference	3	32	1	-	36
Balance as of June 30, 2021	631	3,716	19	194	4,560

*Net of adjustments on account of modification of lease term

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2020:

					(In ₹ crore)
Particulars	Category of ROU asset
	Land	Buildings	Vehicles	Computers
Balance as of April 1, 2020	626	3,485	15	42	4,168
Additions	-	(17)	8	30	21
Deletions	-	(58)	-	-	(58)
Depreciation	(1)	(145)	(3)	(5)	(154)
Translation difference	-	20	-	-	20
Balance as of June 30, 2020	625	3,285	20	67	3,997

The aggregate depreciation expense on ROU assets is included in cost of sales in the consolidated statement of comprehensive income.

The following is the break-up of current and non-current lease liabilities as of June 30, 2021 and March 31, 2021:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Current lease liabilities	740	738
Non-current lease liabilities	4,391	4,587
Total	5,131	5,325

2.9 Goodwill and intangible assets

2.9.1 Goodwill

Accounting Policy

Goodwill represents the purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquired entity. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized immediately in the net profit in the Statement of Comprehensive Income. Goodwill is measured at cost less accumulated impairment losses.

Impairment

Following is a summary of changes in the carrying amount of goodwill:

		(In ₹ crore)
	As at
Particulars	June 30, 2021	March 31, 2021
Carrying value at the beginning	6,079	5,286
Goodwill on acquisitions	-	758
Translation differences	118	35
Carrying value at the end	6,197	6,079

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition.

2.9.2 Other intangible assets

Accounting Policy

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Impairment

Intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation) had no impairment loss been recognized for the asset in prior years.

2.10 BUSINESS COMBINATIONS

Accounting policy

Business combinations have been accounted for using the acquisition method under the provisions of IFRS 3 (Revised), Business Combinations.

Transaction costs that the Group incurs in connection with a business combination such as finder's fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred.

2.11 Employees' Stock Option Plans (ESOP)

Accounting Policy

Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan)

On June 22, 2019 pursuant to the approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 50,000,000 equity shares. To implement the 2019 Plan , up to 45,000,000 equity shares may be issued by way of secondary acquisition of shares by the Infosys Expanded Stock Ownership Trust. The RSUs granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

2015 Stock Incentive Compensation Plan (the 2015 Plan) :

The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC) . The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant.

Controlled trust holds 15,144,907 and 15,514,732 shares as at June 30, 2021 and March 31, 2021, respectively under the 2015 plan. Out of these shares 200,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2021 and March 31, 2021.

The following is the summary of grants during the three months ended June 30, 2021 and June 30, 2020:

	2019 Plan		2015 Plan
Particulars		Three months ended	Three months endedJune 30,
		June 30,
	2021	2020	2021	2020
Equity settled RSU
KMPs	73,962	207,808	101,697	204,097
Employees other than KMP	-	-	-	24,600
Total Grants	73,962	207,808	101,697	228,697

Notes on grants to KMP:

CEO & MD

Under the 2015 plan:

In accordance with the employee agreement which has been approved by the shareholders, the CEO is eligible to receive an annual grant of RSUs of fair value ₹3.25 crore which will vest overtime in three equal annual installments upon the completion of each year of service from the respective grant date. Though the annual time based grants for the remaining employment term ending on March 31, 2023 have not been granted as of June 30, 2021, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with IFRS 2, Share based payments.

Under the 2019 plan:

The Board, on April 14, 2021, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2022 under the 2019 Plan. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. Accordingly, 73,962 performance based RSU's were granted effective May 2, 2021.

Other KMPs

Under the 2015 plan:

On April 14, 2021, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performancebased grant of 5,547 RSUs to other KMP under the 2015 Plan. The grants were made effective May 2, 2021. The performance based RSUs will vest over three years based on certain performance targets.

		(in ₹ crore)
		Three months ended
Particulars	June 30,
	2021	2020
Granted to:
KMP	17	17
Employees other than KMP	93	59
Total (1)	110	76
(1) Cash settled stock compensation expense included in the above	7	13

The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options.

The fair value of each equity settled award is estimated on the date of grant using the following assumptions:

Particulars	For options granted in
	Fiscal 2022-	Fiscal 2022-	Fiscal 2021-	Fiscal 2021-
	Equity Shares	ADS-RSU	Equity Shares	ADS-RSU
	RSU		RSU
Weighted average share price (₹) / ($ ADS)	1,352	18.20	1,253	18.46
Exercise price (₹)/ ($ ADS)	5.00	0.07	5.00	0.07
Expected volatility (%)	29-35	30-37	30-35	30-36
Expected life of the option (years)	1-4	1-4	1-4	1-4
Expected dividends (%)	2-3	2-3	2-3	2-3
Risk-free interest rate (%)	4-5	0.1-0.6	4-5	0.1-0.3
Weighted average fair value as on grant date (₹) / ($ ADS)	1,189	16.80	1,124	16.19

The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP.

2.12 INCOME TAXES

Accounting policy

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Consolidated Statement of Comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Income tax expense in the consolidated statement of comprehensive income comprises:

		(In ₹ crore)
Particulars	Three months ended June 30,
		2020
Current taxes
Domestic taxes	1,440	1,118
Foreign taxes	497	203
	1,937	1,321
Deferred taxes
Domestic taxes	114	181
Foreign taxes	(76)	18
	38	199
Income tax expense	1,975	1,520

Income tax expense for the three months ended June 30, 2021 and June 30, 2020 includes reversal (net of provisions) of ₹13 crore and ₹131 crore respectively. These reversals pertain to prior periods primarily on account of adjudication of certain disputed matters in favor of the Company and upon filing of tax return across various jurisdictions.

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Profit before income taxes	7,176	5,792
Enacted tax rates in India	34.94%	34.94%
Computed expected tax expense	2,507	2,024
Tax effect due to non-taxable income for Indian tax purposes	(666)	(547)
Overseas taxes	199	164
Tax provision (reversals)	(13)	(131)
Effect of exempt non-operating income	(19)	(9)
Effect of unrecognized deferred tax assets	-	17
Effect of differential tax rates	(31)	(28)
Effect of non-deductible expenses	37	38
Others	(39)	(8)
Income tax expense	1,975	1,520

The applicable Indian corporate statutory tax rate for the three months ended June 30, 2021 and June 30, 2020 is 34.94% each.

Deferred income tax for the three months June 30, 2021 and June 30, 2020 substantially relates to origination and reversal of temporary differences.

As at June 30, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ₹3,471 crore.

As at March 31, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ₹3,462 crore.

The amount paid to statutory authorities against the tax claims amounted to ₹6,065 crore and ₹6,095 crore as at June 30, 2021 and March 31, 2021, respectively.

2.13 Basic and diluted shares used in computing earnings per equity share

Accounting Policy

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

2.14 Related party transactions

Refer Note 2.14 "Related party transactions" in the Company's 2021 Consolidated financial statements under IFRS in indian rupee for the full names and other details of the Company's subsidiaries and controlled trusts.

Changes in Subsidiaries

During the three months ended June 30, 2021, the following are the changes in the subsidiaries:

Simplus North America Inc., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective April 27, 2021.
Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus ANZ Pty Ltd , is under liquidation.
Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., is under liquidation.

Transactions with key management personnel

The table below describes the compensation to key management personnel which comprise directors and executive officers:

	(In ₹ crore)
Particulars	Three months endedJune 30,
	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers(1)(2)	37	33
Commission and other benefits to non-executive/ independent directors	2	1
Total	39	34

(1)For the three months ended June 30, 2021 and June 30, 2020, includes a charge of ₹17 crore and ₹17 crore respectively, towards employee stock compensation expense. (Refer note 2.11).

(2)Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.

2.15 Segment reporting

Business segments of the Group are primarily enterprises in Financial Services and Insurance, enterprises in Manufacturing, enterprises in Retail, Consumer Packaged Goods and Logistics, enterprises in the Energy, Utilities, Resources and Services, enterprises in Communication, Telecom OEM and Media, enterprises in Hi-Tech, enterprises in Life Sciences and Healthcare and all other segments. The Financial services reportable segments has been aggregated to include the Financial Services operating segment and Finacle operating segment because of the similarity of the economic characteristics. All other segments represents the operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public services and revenue generated from customers located in India, Japan and China and other enterprises in Public services. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and on-site expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group.

Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations.

2.15.1 Business segments

Three months ended June 30, 2021 and June 30, 2020

									(In ₹ crore)
Particulars	FinancialServices(1)		Retail(2) Communication(3)	Energy,Utilities,Resourcesand Services	Manufacturing	Hi Tech	LifeSciences(4)	All othersegments(5)	Total
Revenue	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665
Identifiable operating expenses	5,313	1,996	2,080	1,754	1,538	1,381	1,017	482	15,561
	3,904	1,593	1,902	1,553	1,283	1,128	799	467	12,629
Allocated expenses	1,546	697	616	595	539	362	303	245	4,903
	1,552	750	642	623	467	337	300	244	4,915
Segment operating income	2,358	1,482	707	1,022	625	567	571	100	7,432
	2,001	1,048	621	851	506	598	476	20	6,121
Unallocable expenses									829
									756
Operating profit									6,603
									5,365
Other income, net (Refer to note 2.18)									622
									475
Finance Cost									49
									48
Profit before income taxes									7,176
									5,792
Income tax expense									1,975
									1,520
Net profit									5,201
									4,272
Depreciation and amortization									829
									756
Non-cash expenses other than depreciation and amortization									-

(1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

2.15.2 Significant clients

No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2021 and June 30, 2020, respectively.

2.16 Revenue from Operations

Accounting Policy:

Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Group is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Group uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract.

The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them.

The Group presents revenues net of indirect taxes in its consolidated statement of comprehensive income.

Revenues for the three months and year ended June 30, 2021 and June 30, 2020 is as follows:

		(In ₹ crore)
	Three months ended June
Particulars	30,
	2021	2020
Revenue from software services	25,847	22,019
Revenue from products and platforms	2,049	1,646
Total revenue from operations	27,896	23,665

The Group has evaluated the impact of COVID – 19 pandemic resulting from (i) the possibility of constraints in our ability to render services which may require revision of estimations of costs to complete the contract because of additional efforts; (ii) onerous obligations; (iii) penalties relating to breaches of service level agreements, and (iv) termination or deferment of contracts by customers. The Group has concluded that the impact of COVID – 19 pandemic is not material based on these estimates. Due to the nature of the COVID – 19 pandemic, the Group will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

Disaggregated revenue information

The table below presents disaggregated revenues from contracts with customers by geography and offerings for each of our business segments. The group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.

Three months ended June 30, 2021 and June 30, 2020

									(In ₹ crore)
Particulars	FinancialServices (1)	Retail(2)	Communication (3)	Energy,Utilities,Resources andServices	Manufacturing	Hi Tech	LifeSciences(4)	Others (5)	Total
Revenues by Geography*
North America	5,727	2,786	1,775	1,727	1,441	2,153	1,368	229	17,206
	4,374	2,176	1,815	1,713	1,298	1,946	1,048	171	14,541
Europe	1,651	1,150	823	1,336	1,183	52	487	55	6,737
	1,535	1,018	628	1,037	885	31	495	55	5,684
India	402	30	109	31	14	91	8	136	821
	369	9	57	3	15	72	8	152	685
Rest of the world	1,437	209	696	277	64	14	28	407	3,132
	1,179	188	665	274	58	14	24	353	2,755
Total	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665
Revenue by offerings
Digital	4,812	2,393	1,930	1,859	1,444	1,272	1,012	326	15,048
	3,426	1,613	1,496	1,320	1,028	868	566	216	10,533
Core	4,405	1,782	1,473	1,512	1,258	1,038	879	501	12,848
	4,031	1,778	1,669	1,707	1,228	1,195	1,009	515	13,132
Total	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665

(1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

* Geographical revenues is based on the domicile of customer.

Digital Services

Core Services

Products & platforms

Trade Receivables and Contract Balances

The timing of revenue recognition, billings and cash collections results in Receivables, Unbilled Revenue, and Unearned Revenue on the Group's Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones.

The Group's Receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time.

Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified as unearned revenue.

Trade receivables and unbilled revenues are presented net of impairment in the consolidated financial position.

2.17 Unbilled Revenue

		(In ₹ crore)
Particulars	As at
	June 30,	March 31,
	2021	2021
Unbilled financial asset (1)	3,877	3,572
Unbilled non financial asset (2)	5,301	4,549
Total	9,178	8,121

(1) Right to consideration is unconditional and is due only after a passage of time.

(2) Right to consideration is dependent on completion of contractual milestones.

2.18 Break-up of expenses and other income, net

a. Accounting policy

Gratuity and Pensions

The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and/or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits.

The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Consolidated Statement of Comprehensive Income.

Provident fund

Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Companies have no further obligation to the plan beyond its monthly contributions.

Superannuation

Certain employees of Infosys, Infosys BPM and EdgeVerve are participants in a defined contribution plan. The Group has no further obligations to the plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

Compensated absences

The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

Other income, net

Foreign currency

Functional currency

The functional currency of Infosys, Infosys BPM, controlled trusts, EdgeVerve and Skava is the Indian rupee. The functional currencies for foreign subsidiaries are their respective local currencies. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

Transactions and translations

The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the statement of comprehensive income. However when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity.

Government grants

Operating Profits

Operating profit of the Group is computed considering the revenues, net of cost of sales, selling and marketing expenses and administrative expenses.

b. The table below provides details of break-up of expenses:

Cost of sales

		(In ₹ crore)
	Three months ended June 30,
Particulars	2021	2020
Employee benefit costs	13,637	12,064
Depreciation and amortization	829	756
Travelling costs	119	96
Cost of technical sub-contractors	2,454	1,625
Cost of software packages for own use	330	283
Third party items bought for service delivery to clients	946	601
Short-term leases	7	10
Consultancy and professional charges	24	10
Communication costs	76	88
Repairs and maintenance	90	132
Provision for post-sales client support	1	6
Others	(7)	32
Total	18,506	15,703

Selling and marketing expenses

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Employee benefit costs	1,059	1,041
Travelling costs	6	7
Branding and marketing	114	59
Short-term leases	1	1
Communication costs	2	3
Consultancy and professional charges	46	15
Others	20	20
Total	1,248	1,146

Administrative expenses

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Employee benefit costs	534	499
Consultancy and professional charges	326	237
Repairs and maintenance	213	237
Power and fuel	33	35
Communication costs	69	72
Travelling costs	8	13
Impairment loss recognized/(reversed) under expected credit loss model	44	99
Rates and taxes	63	55
Insurance charges	41	29
Short-term leases	9	13
Commission to non-whole time directors	2	1
Contribution towards Corporate Social Responsibility	145	120
Others	52	41
Total	1,539	1,451

Other income consists of the following:

		(In ₹ crore)
	Three months ended June 30,
Particulars	2021	2020
Interest income on financial assets carried at amortized cost	328	291
Interest income on financial assets carried at fair value through other comprehensive income	158	89
Dividend income on investments carried at fair value through profit or loss	-	1
Gain/(loss) on investments carried at fair value through profit or loss	24	24
Gain/(loss) on investments carried at fair value through other comprehensive income	-	27
Interest income on income tax refund	13	-
Exchange gains / (losses) on forward and options contracts	(77)	46
Exchange gains / (losses) on translation of foreign currency assets and liabilities	128	(32)
Others	48	29
Total	622	475

2.19 Equity

Accounting policy

Ordinary Shares

Treasury Shares

Description of reserves

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

Share premium

Special Economic Zone Re-investment reserve

Capital Redemption Reserve

Other components of equity

Other components of equity include currency translation, re-measurement of net defined benefit liability/asset, fair value changes of equity instruments fair valued through other comprehensive income, changes on fair valuation of investments, net of taxes.

Cash flow hedge reserve

2.19.1 Dividend

The final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits.

The Company declares and pays dividends in Indian rupees. Companies are required to pay / distribute dividend after deducting applicable withholding income taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

Amount of per share dividend recognized as distribution to equity shareholders:-

		(In ₹)
Particulars	Three months ended June 30,
	2021	2020
Final dividend for fiscal 2020	-	9.50
Final dividend for fiscal 2021	15.00	-

The Board of Directors in their meeting on April 14, 2021 recommended a final dividend of ₹15/- per equity share for the financial year ended March 31, 2021. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 19, 2021 which resulted in a net cash outflow of ₹6,369 crore (excluding dividend paid on treasury shares).

2.19.2 Capital allocation policy

Effective fiscal 2020, the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any. Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes.

Update on buyback announced in April 2021:

In line with the capital allocation policy, the Board, at its meeting held on April 14, 2021, approved the buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to ₹9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ₹1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing Annual General Meeting.

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19 , 2021. At the Maximum buyback price of 1,750/- per equity share and the Maximum buyback size of 9,200 crore the indicative maximum number of equity shares bought back would be 5,25,71,428 Equity Shares (Maximum buyback shares) comprising approximately 1.23% of the paid-up equity share capital of the Company as of March 31, 2021 and as on June 22, 2021 the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and is expected to be completed on or before December 24, 2021. During the quarter ended June 30, 2021 43,90,000 equity shares were purchased from the stock exchange which includes 11,02,000 shares which have been purchased but not extinguished as of June 30, 2021 and 11,02,000 shares which have been purchased but have not been settled and therefore not extinguished as of June 30, 2021. In accordance with section 69 of the Companies Act, 2013, during the quarter ended June 30, 2021 , the Company has created 'Capital Redemption Reserve' of `2 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As at June 30, 2021, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

2.19.3 Share capital and share premium

The Company has only one class of shares referred to as equity shares having a par value of ₹5/- each. 1,51,44,907 and 1,55,14,732 shares were held by controlled trust, as at June 30, 2021 and March 31, 2021, respectively.

for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

Bengaluru July 14, 2021

A.G.S. Manikantha Company Secretary

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Chartered Accountants Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Report on the Audit of the Interim Condensed Standalone Financial Statements

Opinion

We have audited the accompanying interim condensed standalone financial statements of INFOSYS LIMITED (the "Company"), which comprise the Condensed Balance Sheet as at June 30, 2021, the Condensed Statement of Profit and Loss (including Other Comprehensive Income), the Condensed Statement of Changes in Equity and the Condensed Statement of Cash Flows for the three months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed standalone financial statements give a true and fair view in conformity with Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act"), read with relevant rules issued thereunder and other accounting principles generally accepted in India, of the state of affairs of the Company as at June 30, 2021, the profit and total comprehensive income, changes in equity and its cash flows for the three months ended on that date.

Basis for Opinion

We conducted our audit of the interim condensed standalone financial statements in accordance with the Standards on Auditing ("SA"s) specified under section 143 (10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Interim Condensed Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the interim condensed standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the interim condensed standalone financial statements.

Management's Responsibilities for the Interim Condensed Standalone Financial Statements

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed standalone financial statements that give a true and fair view of the financial position, financial performance, including total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS 34 and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate

accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the interim condensed standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the interim condensed standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Interim Condensed Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the interim condensed standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these interim condensed standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the interim condensed standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's internal financial controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the interim condensed standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the interim condensed standalone financial statements, including the disclosures, and whether the interim condensed standalone

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the interim condensed standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the interim condensed standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the interim condensed standalone financial statements.

We also communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

INFOSYS LIMITED

Condensed Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the three months June 30, 2021

Index	Page No.
Condensed Balance Sheet……………………………………………………………………………………………………………1
Condensed Statement of Profit and Loss………………………………………………………………………………………… 2
Condensed Statement of Changes in Equity………………………………………………………………………………………3
Condensed Statement of Cash Flows………………………………………………………………………………………………… 5
Overview and notes to the financial statements
1. Overview
1.1 Company overview ……………………………………………………………………………………………………………7
1.2 Basis of preparation of financial statements ……………………………………………………………………………………………………………	7
1.3 Use of estimates and judgments……………………………………………………………………………………………………………	7
1.4 Critical accounting estimates ……………………………………………………………………………………………………………	7
2. Notes to financial statements
2.1 Property, plant and equipment……………………………………………………………………………………………………………	9
2.2 Goodwill and intangible assets…………………………………………………………………………………………	10
2.3 Leases……………………………………………………………………………………………………………………….11
2.4 Investments……………………………………………………………………………………………………………… 12
2.5 Loans………………………………………………………………………………………………………………………14
2.6 Other financial assets…………………………………………………………………………………………………………. 14
2.7 Trade Receivables ………………………………………………………………………………………………………….15
2.8 Cash and cash equivalents…………………………………………………………………………………………………………. 15
2.9 Other assets………………………………………………………………………………………………………………	15
2.10 Financial instruments…………………………………………………………………………………………………………. 16
2.11 Equity……………………………………………………………………………………………………………………19
2.12 Other financial liabilities…………………………………………………………………………………………………………. 22
2.13 Trade payables………………………………………………………………………………………………………….	22
2.14 Other liabilities………………………………………………………………………………………………………….	22
2.15 Provisions……………………………………………………………………………………………………………….	23
2.16 Income taxes…………………………………………………………………………………………………………….	23
2.17 Revenue from operations…………………………………………………………………………………………………………. 24
2.18 Other income, net………………………………………………………………………………………………………….26
2.19 Expenses………………………………………………………………………………………………………………	27
2.20 Basic and diluted shares used in computing earning per share………………………………………………………………………………………………………….	28
2.21 Contingent liabilities and commitments………………………………………………………………………………………………………….	28
2.22 Related party transactions…………………………………………………………………………………………………………. 28
2.23 Segment Reporting…………………………………………………………………………………………………………. 29

		(In ₹ crore)March 31, 2021


2.1	10,971	10,930
2.3	3,217	3,435
	747	906
	167	167
	58	67

2.4	21,574	22,118
		30
		613
		955
		5,287
		1,149
	44,659	45,657


2.4	4,162	2,037
		16,394
		17,612
		229
		5,226
		6,784
		48,282
	93,687	93,939


		2,130
		69,401
	66,271	71,531




		3,367
		259
		511
		6494,786



		487

		-
		1,562
		8,359
		4,816
		661
	2,473	1,737
	22,893	17,622
	Note No.2.52.62.92.72.82.52.62.92.112.32.122.142.32.13Total outstanding dues of creditors other than micro enterprises and small enterprises2.122.142.15	June 30, 2021445788475,2901,16617,75914,3951595,6206,93349,0282,12864,1433,1861974806604,523489-1,60611,7545,886685

As per our report of even date attached

Chartered Accountants Firm's Registration No:

117366W/W-100018

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Membership No. 039826 and Managing Director and Whole-time Director

A.G.S. Manikantha Company Secretary

D. Sundaram Nilanjan Roy Jayesh Sanghrajka Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

INFOSYS LIMITED

			(In ₹ crore except equity share and per equity share data)
Condensed Statement of Profit and Loss for the	Note No.	Three months ended June 30,
		2021	2020
Revenue from operations	2.17	23,714	20,325
Other income, net	2.18	570	478
Total income		24,284	20,803
Expenses
Employee benefit expenses	2.19	12,191	11,222
Cost of technical sub-contractors		3,316	2,095
Travel expenses		115	92
Cost of software packages and others	2.19	528	481
Communication expenses		104	114
Consultancy and professional charges		311	193
Depreciation and amortization expense		576	546
Finance cost		32	31
Other expenses	2.19	618	651
Total expenses		17,791	15,425
Profit before tax		6,493	5,378
Tax expense:
Current tax	2.16	1,697	1,225
Deferred tax	2.16	73	145
Profit for the period		4,723	4,008

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		(32)	156
Equity instruments through other comprehensive income, net		2	-
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		5	(6)
Fair value changes on investments, net	2.4	38	49
Total other comprehensive income/ (loss), net of tax		13	199

Total comprehensive income for the period		4,736	4,207
Earnings per equity share
Equity shares of par value ₹5/- each
Basic (₹)		11.08	9.41
Diluted (₹)		11.07	9.41
Weighted average equity shares used in computing earnings per equity
shareBasic	2.20	4,26,08,26,317	4,25,90,60,343
Diluted	2.20	4,26,51,92,195	4,26,07,02,640

The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP Chartered Accountants for and on behalf of the Board of Directors of Infosys Limited Firm's Registration No:

117366W/W-100018

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Mumbai Bengaluru July 14, 2021 July 14, 2021

Condensed Statement of Changes in Equity

(In ₹ crore)

Other Equity
		Reserves & Surplus									Other comprehensive income		Total equity
	Equity		Capital reserve	Capital	Securities	Retained	General	Share	Special	Equity Instruments	Effective	Other items of	attributable to equity
Particulars	ShareCapital	Capital	Other	redemption	Premium	earnings	reserve	Options	Economic Zone	through other	portion of	other	holders of the
		reserve	(2)reserves	reserve				OutstandingAccount	Re-investment(1)reserve	comprehensive income	Cash flowhedges	comprehensiveincome / (loss)	Company
Balance as at April 1, 2020	2,129	54	3,082	111	268	52,419	106	297	3,907	49	(15)	(173)	62,234
Changes in equity for the three months ended June 30, 2020
Profit for the period	-	-	-	-	-	4,008	-		--	-	-	-	4,008
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	-		--	-	-	156	156
Equity instruments through other comprehensive income*	-	-	-	-	-	-	-		--	-	-	-	-
Fair value changes on derivatives designated as cash flow hedge*	-	-	-	-	-	-	-		--	-		(6)-	(6)
Fair value changes on investments, net*	-	-	-	-	-	-	-		--	-	-	49	49
Total comprehensive income for the period	-	-	-	-	-	4,008	-		--	-	(6)	205	4,207
Transfer to general reserve	-	-	-	-	-	(1,554)	1,554		--	-	-	-	-
Transferred to Special Economic Zone Re-investment reserve	-	-	-	-	-	(706)	-		-706	-	-	-	-
Transferred from Special Economic Zone Re-investment reserve on utilization	-	-	-	-	-	295	-		-(295)	-	-	-	-
Transfer on account of exercise of stock options (Refer to Note 2.11)	-	-	-	-	37	-	-	(37)	-	-	-	-	-
Transfer on account of options not exercised	-	-	-	-	-	-	1	(1)	-	-	-	-	-
Shares issued on exercise of employee stock options	-	-	-	-	2	-	-		--	-	-	-	2
Share based payment to employees (Refer to Note 2.11)	-	-	-	-	-	-	-	63	-	-	-	-	63
Dividends (including dividend distribution tax)	-	-	-	-	-	(4,046)	-		--	-	-	-	(4,046)
Balance as at June 30, 2020	2,129	54	3,082	111	307	50,416	1,661	322	4,318	49	(21)	32	62,460

INFOSYS LIMITED

Condensed Statement of Changes in Equity

								Other Equity
						Reserves & Surplus		Other comprehensive income		Total equity
Particulars	EquityShare		Capital reserve	Capital				Share	Special	Equity Instruments	Effective	Other items of	attributable to equity
	Capital	Capitalreserve	Other(2)reserves	redemptionreserve	SecuritiesPremium	Retainedearnings	Generalreserve	OptionsOutstandingAccount	Economic ZoneRe-investment(1)reserve	through othercomprehensive income	portion ofCash flowhedges	othercomprehensiveincome / (loss)	holders of theCompany
Balance as at April 1, 2021	2,130	54	2,906	111	581	57,518	1,663	372	6,144	169	10	(127)	71,531
Changes in equity for the three months ended June 30, 2021
Profit for the period	-	-	-	-	-	4,723	-		--		--	-	4,723
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	-		--		--	(32)	(32)
Equity instruments through other comprehensive income*	-	-	-	-	-	-	-		--	2	-	-	2
Fair value changes on derivatives designated as cash flow hedge*	-	-	-	-	-	-	-		--		-5	-	5
Fair value changes on investments, net*	-	-	-	-	-	-	-		--		--	38	38
Total comprehensive income for the period	-	-	-	-	-	4,723	-		--	2	5	6	4,736
Buyback of equity shares (Refer to Notes 2.11 and 2.12) **	(2)	-	-	-	-	(2,848)	(849)		--		--	-	(3,699)
Transaction cost relating to buyback*	-	-	-	-	-	-	(17)		--		--	-	(17)
Amount transferred to capital redemption reserve upon buyback	-	-	-	2	-	-		(2)	--		--	-	-
Transferred to Special Economic Zone Re-investment reserve	-	-	-	-	-	(695)	-		-695		--	-	-
Transferred from Special Economic Zone Re-investment reserve on utilization	-	-	-	-	-	189	-		-(189)		--	-	-
Transfer on account of exercise of stock options (Refer to Note 2.11)	-	-	-	-	51	-	-	(51)	-		--	-	-
Shares issued on exercise of employee stock options (Refer to Note 2.11)	-	-	-	-	6	-	-		--		--	-	6
Employee stock compensation expense (Refer to Note 2.11)	-	-	-	-	-	-	-	103	-		--	-	103
Income tax benefit arising on exercise of stock options	-	-	-	-	3	-	-		--		--	-	3
Dividends	-	-	-	-	-	(6,392)	-		--		--	-	(6,392)
Balance as at June 30, 2021	2,128	54	2,906	113	641	52,495	795	424	6,650	171	15	(121)	66,271

* net of tax

** Including tax on buyback of ` 699 crore

(1)The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.

(2)Profit / loss on transfer of business between entities under common control taken to reserve.

The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Chartered Accountants

Firm's Registration No:

117366W/W-100018

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Membership No. 039826 and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Partner Chairman Chief Executive Officer Chief Operating Officer

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer (In ₹ crore)

A.G.S. Manikantha Company Secretary

INFOSYS LIMITED

Condensed Statement of Cash Flows

Accounting Policy

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

			(In ₹ crore)
Particulars	Note No.	Three months ended June 30,
		2021	2020
Cash flow from operating activities:
Profit for the period		4,723	4,008
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization		576	546
Income tax expense	2.16	1,770	1,370
Impairment loss recognized / (reversed) under expected credit loss model		35	85
Finance cost		32	31
Interest and dividend income		(424)	(350)
Stock compensation expense		97	68
Other adjustments		(62)	8
Exchange differences on translation of assets and liabilities, net		41	(8)
Changes in assets and liabilities
Trade receivables and unbilled revenue		(2,072)	(769)
Loans, other financial assets and other assets		407	66
Trade payables		44	(27)
Other financial liabilities, other liabilities and provisions		1,375	239
Cash generated from operations		6,542	5,267
Income taxes paid		(947)	(575)
Net cash generated by operating activities		5,595	4,692
Cash flow from investing activities:
Expenditure on property, plant and equipment		(388)	(338)
Deposits placed with corporations		(133)	(130)
Loan given to subsidiaries		-	(76)
Loan repaid by subsidiaries		73	226
Proceeds from redemption of debentures		536	107
Investment in subsidiaries		(110)	(59)
Payment of contingent consideration pertaining to acquisition		-	(122)
Escrow and other deposits pertaining to Buyback		(320)	-
Other receipts		12	12
Payments to acquire investments
Preference, equity securities and others		(3)	(1)
Liquid mutual fund units and fixed maturity plan securities		(10,500)	(4,202)
Certificates of deposit		(249)	-
Government Securities		(82)	(3,076)
Proceeds on sale of investments
Liquid mutual fund units and fixed maturity plan securities		8,847	5,078
Non-convertible debentures		50	295
Certificates of deposit		-	250
Government Securities		-	822
Interest received		537	352
Net cash (used in) / from investing activities		(1,730)	(862)

Cash flow from financing activities:
Payment of lease liabilities	2.3	(134)	(71)
Buyback of equity shares including transaction cost		(532)	-
Shares issued on exercise of employee stock options		6	2
Payment of dividends		(6,393)	-
Net cash used in financing activities		(7,053)	(69)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(29)	3
Net increase / (decrease) in cash and cash equivalents		(3,188)	3,761
Cash and cash equivalents at the beginning of the period	2.8	17,612	13,562
Cash and cash equivalents at the end of the period		14,395	17,326
Supplementary information:
Restricted cash balance	2.8	153	101

Closing cash and cash equivalents as per standalone statement of cash flows		14,395	17,326
Less: Earmarked bank balance for dividend		-	(4,046)
Closing cash and cash equivalents as per Standalone Balance Sheet	2.8	14,395	13,280

The accompanying notes form an integral part of the interim condensed standalone financial statements.

As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants

Firm's Registration No: 117366W/W-100018

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Mumbai Bengaluru July 14, 2021 July 14, 2021

INFOSYS LIMITED

Notes to the Interim Condensed Standalone Financial Statements

1. Overview

1.1 Company overview

The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronic city, Hosur Road, Bengaluru 560100, Karnataka, India. The Company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company's American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE).

The interim condensed standalone financial statements are approved for issue by the Company's Board of Directors on July 14, 2021.

1.2 Basis of preparation of financial statements

These interim condensed standalone financial statements are prepared in accordance with Indian Accounting Standard 34 (Ind AS 34), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ('the Act') and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed standalone financial statements do not include all the information required for a complete set of financial statements. These interim condensed standalone financial statements should be read in conjunction with the standalone financial statements and related notes included in the Company's Annual Report for the year ended March 31, 2021. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there after.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Use of estimates and judgments

The preparation of the interim condensed standalone financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note no. 1.4 . Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed standalone financial statements.

Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):

The Company has considered the possible effects that may result from the COVID-19 pandemic in the preparation of these interim condensed standalone financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of the COVID-19 pandemic, the Company has, at the date of approval of these condensed financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 pandemic on the Company's financial statements may differ from that estimated as at the date of approval of these interim condensed standalone financial statements.

1.4 Critical accounting estimates and judgments

a. Revenue recognition

The Company's contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement.

Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Company's costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables.

The Company uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Company to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information.

Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

b. Income taxes

The Company's two major tax jurisdictions are India and the U.S., though the Company also files tax returns in other overseas jurisdictions.

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

In assessing the realizability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer note no. 2.16 and note no. 2.21)

c. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. (Refer note no. 2.1)

d. Leases

As a lessee, the company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the company has concluded that no material changes are required to lease period relating to the existing lease contracts. (Refer note no 2.3)

e. Allowance for credit losses on receivables and unbilled revenue

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates. In calculating expected credit loss, the Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19.

2.1 PROPERTY, PLANT AND EQUIPMENT

Accounting Policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the management. The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Building(1)	22-25 years
Plant and machinery(1)(2)	5 years
Office equipment	5 years
Computer equipment(1)	3-5 years
Furniture and fixtures(1)	5 years
Vehicles(1)	5 years
Leasehold improvements	Lower of useful life of the asset or lease term

(1) Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

(2) Includes Solar plant with a useful life of 20 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

Impairment

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2021 are as follows:

									(In ₹ crore)
Particulars	Land- Freehold	Buildings(1)(2)	Plant andmachinery(2)	OfficeEquipment(2)	Computerequipment(2)	Furnitureandfixtures(2)	LeaseholdImprovements	Vehicles	Total
Gross carrying value as at April 1, 2021	1,397	9,546	3,141	1,195	6,530	1,952	788	44	24,593
Additions	1	152	24	17	268	13	27	-	502
Deletions	-	-	(1)	(1)	(42)	(1)	-	-	(45)
Gross carrying value as at June 30, 2021	1,398	9,698	3,164	1,211	6,756	1,964	815	44	25,050
Accumulated depreciation as at April 1, 2021	-	(3,460)	(2,600)	(891)	(4,870)	(1,434)	(376)	(32)	(13,663)
Depreciation	-	(91)	(53)	(28)	(202)	(46)	(40)	(1)	(461)
Accumulated depreciation on deletions	-	-	1	1	42	1	-	-	45
Accumulated depreciation as at June 30, 2021	-	(3,551)	(2,652)	(918)	(5,030)	(1,479)	(416)		(33) (14,079)
Carrying value as at April 1, 2021	1,397	6,086	541	304	1,660	518	412	12	10,930
Carrying value as at June 30, 2021	1,398	6,147	512	293	1,726	485	399	11	10,971

The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2020 are as follows:

									(In ₹ crore)
Particulars	Land- Freehold	Buildings(1)(2)	Plant andmachinery(2)	OfficeEquipment(2)	Computerequipment(2)	Furnitureandfixtures(2)	LeaseholdImprovements	Vehicles	Total
Gross carrying value as at April 1, 2020	1,316	9,038	3,038	1,094	5,690	1,875	669	43	22,763
Additions	69	39	13	11	305	11	2	-	450
Deletions	-	-	(1)	(2)	(6)	(1)	(8)	-	(18)
Gross carrying value as at June 30, 2020	1,385	9,077	3,050	1,103	5,989	1,885	663	43	23,195
Accumulated depreciation as at April 1, 2020	-	(3,114)	(2,053)	(787)	(4,197)	(1,246)	(248)		(26) (11,671)
Depreciation	-	(86)	(72)	(29)	(171)	(51)	(32)	(2)	(443)
Accumulated depreciation on deletions	-	-	1	2	6	1	8	-	18
Accumulated depreciation as at June 30, 2020	-	(3,200)	(2,124)	(814)	(4,362)	(1,296)	(272)		(28) (12,096)
Carrying value as at April 1, 2020	1,316	5,924	985	307	1,493	629	421	17	11,092
Carrying value as at June 30, 2020	1,385	5,877	926	289	1,627	589	391	15	11,099

(1) Buildings include ₹250/- being the value of five shares of ₹50/- each in Mittal Towers Premises Co-operative Society Limited.

(2) Includes certain assets provided on cancellable operating lease to subsidiaries.

The aggregate depreciation has been included under depreciation and amortization expense in the interim condensed statement of Profit and Loss.

2.2 GOODWILL AND OTHER INTANGIBLE ASSETS

2.2.1 Goodwill

Following is a summary of changes in the carrying amount of goodwill:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Carrying value at the beginning	167	29
Goodwill on business transfer	-	138
Translation differences	-	-
Carrying value at the end	167	167

2.2.2 Intangible Assets:

Accounting Policy

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

2.3 LEASES

Accounting Policy

The Company as a lessee

The Company's lease asset classes primarily consist of leases for land, buildings and computers. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2021:

				(In ₹ crore)
Particulars		Category of ROU asset
	Land	Buildings	Computers
Balance as at April 1, 2021	556	2,766	113	3,435
Additions*	-	(111)	-	(111)
Deletion	-	-	-	-
Depreciation	(1)	(99)	(7)	(107)
Balance as at June 30, 2021	555	2,556	106	3,217

* Net of adjustments on account of modification of lease term

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2020:

				(In ₹ crore)
Particulars	Category of ROU asset	Total
	Land	Buildings	Computers
Balance as at April 1, 2020	554	2,209	42	2,805
Additions	-	(39)	30	(9)
Deletion	-	(35)	-	(35)
Depreciation	(1)	(90)	(5)	(96)
Balance as at June 30, 2020	553	2,045	67	2,665

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed statement of Profit and Loss.

The following is the break-up of current and non-current lease liabilities as at June 30, 2021 and March 31, 2021:

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Current lease liabilities	489	487
Non-current lease liabilities	3,186	3,367
Total	3,675	3,854

2.4 INVESTMENTS

		(In ₹ crore)
Particulars	As at
Non-current investments	June 30, 2021	March 31, 2021
Equity instruments of subsidiaries	9,043	8,933
Debentures of subsidiary	-	536
Redeemable Preference shares of subsidiary	1,318	1,318
Preference securities and equity instruments	169	167
Compulsorily convertible debentures	7	7
Others	45	42
Tax free bonds	2,108	2,131
Government bonds	14	13
Non-convertible debenturesGovernment Securities	3,492	3,669
Total non-current investments	5,37821,574	5,30222,118
Current investments
Liquid mutual fund units	3,002	1,326
Certificates of deposit	250	-
Tax free bonds	20	-
Non-convertible debentures	890	711
Total current investments	4,162	2,037
Total carrying value	25,736	24,155
	(In ₹ crore, except as otherwise stated)
Particulars	As at
	June 30, 2021	March 31, 2021
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited	660	660
3,38,23,444 (3,38,23,444) equity shares of ₹10/- each, fully paid up
Infosys Technologies (China) Co. Limited	369	369
Infosys Technologies, S. de R.L. de C.V., Mexico	65	65
17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB1,000 (1,000) equity shares of SEK 100 par value, fully paid	76	76
Infosys Technologies (Shanghai) Company Limited	1,010	900
Infosys Public Services, Inc.	99	99
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG	1,323	1,323
23,350 (23,350) - Class A shares of CHF 1,000 each and
26,460 (26,460) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.	1	1
10,000 (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited	1,312	1,312
1,31,18,40,000 (1,31,18,40,000) equity shares of ₹10/- each, fully paid upInfosys Nova Holdings LLC (1)	2,637	2,637
Infosys Consulting Pte Ltd	10	10
1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid
Brilliant Basics Holding Limited	59	59
1,346 (1,346) shares of GBP 0.005 each, fully paid up
Infosys Arabia Limited	2	2
70 (70) shares
Skava Systems Private Limited	59	59
25,000 (25,000) shares of ₹10/- each, fully paid up
Panaya Inc.	582	582
2 (2) shares of USD 0.01 per share, fully paid upInfosys Chile SpA	7	7
100 (100) shares
WongDoody Holding Company Inc	380	380
2,000 (2,000) shares
Infosys Luxembourg S.a r.l.	17	17
20,000 (3,700) shares
Infosys Austria GmbH (formerly known as Lodestone Management Consultants GmbH)	-	-
80,000 (80,000) shares of EUR 1 par value, fully paid up
Infosys Consulting Brazil	337	337
27,50,71,070 (27,50,71,070) shares of BRL 1 per share, fully paid up
Infosys Romania	34	34
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Bulgaria	2	2
4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH	2	2
25,000 (25,000) shares EUR 1 per share, fully paid up
Investment in Redeemable Preference shares of subsidiary
Infosys Consulting Pte Ltd	1,318	1,318
24,92,00,000 (24,92,00,000) shares of SGD 1 per share, fully paid up

10,361 10,251

Investment carried at amortized cost
Investment in debentures of subsidiary
EdgeVerve Systems LimitedNil (5,36,00,000) Unsecured redeemable, non-convertible debentures of ₹ 100/- each fully paid up	-	536
	-	536
Investments carried at fair value through profit or loss
Compulsorily convertible debentures	7	7
Others (2)	45	42
Investment carried at fair value through other comprehensive income	52	49
Preference securities	167	165
Equity instruments	2	2
	169	167
QuotedInvestments carried at amortized cost
Tax free bonds	2,108	2,131
Government bonds	14	13
	2,122	2,144
Investments carried at fair value through other comprehensive income
Non-convertible debentures	3,492	3,669
Government Securities	5,378	5,302
	8,870	8,971
Total non-current investments	21,574	22,118

Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units	3,002	1,326
	3,002	1,326
Investments carried at fair value through other comprehensive income
Certificates of deposit	250	-
	250	-
QuotedInvestments carried at amortized cost
Tax free bonds	20	-
	20	-
Investments carried at fair value through other comprehensive income
Non-convertible debentures	890890	711711

Total current investments	4,162	2,037

Total investments	25,736	24,155

Aggregate amount of quoted investments	11,902	11,826
Market value of quoted investments (including interest accrued), current	916	713
Market value of quoted investments (including interest accrued), non current	11,411	11,507
Aggregate amount of unquoted investments	13,834	12,329
(1) Aggregate amount of impairment in value of investments	94	94
Reduction in the fair value of assets held for sale	854	854
Investments carried at cost	10,361	10,251
Investments carried at amortized cost	2,142	2,680
Investments carried at fair value through other comprehensive income	10,179	9,849
Investments carried at fair value through profit or loss	3,054	1,375

(2) Uncalled capital commitments outstanding as of June 30, 2021 and March 31, 2021 was ₹7 crore and ₹10 crore, respectively.

Refer note no. 2.10 for accounting policies on Financial Instruments.

Method of fair valuation:

			(In ₹ crore)
Class of investment	Method	Fair value as at
		June 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	3,002	1,326
Tax free bonds and government bonds	Quoted price and market observable inputs	2,545	2,527
Non-convertible debentures	Quoted price and market observable inputs	4,382	4,380
Government Securities	Quoted price	5,378	5,302
Certificate of deposits	Market observable inputs	250	-
Unquoted equity and preference securities	Discounted cash flows method, Market multiples method, Option pricingmodel	169	167
Compulsorily convertible debentures	Discounted cash flows method	7	7
Others	Discounted cash flows method, Market multiples method, Option pricingmodel	45	42

Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

2.5 LOANS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non- Current
Unsecured, considered good
Other Loans
Loans to employees	44	30
	44	30
Unsecured, considered doubtful
Other Loans
Loans to employees	20	23
	64	53
Less: Allowance for doubtful loans to employees	20	23
Total non - current loans	44	30

Current
Unsecured, considered good
Loans to subsidiaries	-	96
Other Loans
Loans to employees	159	133
Total current loans	159	229
Total Loans	203	259

2.6 OTHER FINANCIAL ASSETS

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Non-current
Security deposits (1)	45	45
Net investment in Sublease of right of use asset (1)	344	348
Rental deposits (1)	134	164
Unbilled revenues (1)(5)#	11	11
Others (1)	44	45
Total non-current other financial assets	578	613
Current
Security deposits (1)	1	1
Rental deposits (1)	39	10
Restricted deposits (1)*	1,960	1,826
Unbilled revenues (1)(5)#	2,327	2,139
Interest accrued but not due (1)	450	553
Foreign currency forward and options contracts (2)(3)	60	178
Escrow and other deposits pertaining to buyback (Refer to Note 2.11) (1)	320	-
Net investment in Sublease of right of use asset (1)	38	37
Others (1)(4)	425	482
Total current other financial assets	5,620	5,226
Total other financial assets	6,198	5,839
(1) Financial assets carried at amortized cost	6,138	5,661
(2) Financial assets carried at fair value through other comprehensive income	32	25
(3) Financial assets carried at fair value through Profit or Loss	28	153
(4) Includes dues from subsidiaries	52	182
(5) Includes dues from subsidiaries	74	82

* Restricted deposits represent deposit with financial institutions to settle employee related obligations as and when they arise during the normal course of business.

# Classified as financial asset as right to consideration is unconditional and is due only after a passage of time.

2.7 TRADE RECEIVABLES

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Current
Unsecured
Considered good (2)	17,759	16,394
Considered doubtful	578	543
	18,337	16,937
Less: Allowances for credit losses	578	543
Total trade receivables (1)	17,759	16,394
(1) Includes dues from companies where directors are interested	-	-
(2) Includes dues from subsidiaries	246	203

2.8 CASH AND CASH EQUIVALENTS

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Balances with banks
In current and deposit accounts	10,675	13,792
Cash on hand	-	-
Others
Deposits with financial institutions	3,720	3,820
Total Cash and cash equivalents	14,395	17,612
Balances with banks in unpaid dividend accounts	32	33
Deposit with more than 12 months maturity	9,348	11,948
Balances with banks held as margin money deposits against guarantees	71	71

Cash and cash equivalents as at June 30, 2021 and March 31, 2021 include restricted cash and bank balances of ₹153 crore and ₹154 crore, respectively. The restrictions are primarily on account of bank balances held as margin money deposits against guarantees.

The deposits maintained by the Company with banks and financial institutions comprise of time deposits, which can be withdrawn by the Company at any point without prior notice or penalty on the principal.

2.9 OTHER ASSETS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non-current
Capital advances	140	141
Advances other than capital advance
Others
Prepaid expenses	62	64
Defined benefit assets	13	9
Deferred contract cost	112	73
Unbilled revenues(2)	152	175
Withholding taxes and others	687	687
Total non-current other assets	1,166	1,149
Current
Advances other than capital advance
Payment to vendors for supply of goods	211	131
Others
Prepaid expenses (1)	914	874
Unbilled revenues (2)	4,405	3,904
Deferred contract cost	27	40
Withholding taxes and others	1,375	1,832
Other receivables	1	3
Total current other assets	6,933	6,784
Total other assets
(1) Includes dues from subsidiaries	8,099225	7,933237

(2) Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

Withholding taxes and others primarily consist of input tax credits and Cenvat recoverable from Government of India.

2.10 FINANCIAL INSTRUMENTS

Accounting Policy

2.10.1 Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

2.10.2 Subsequent measurement

a. Non-derivative financial instruments (i) Financial assets carried at amortized cost

(ii) Financial assets at fair value through other comprehensive income (FVOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit or loss.

(v) Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

(i) Financial assets or financial liabilities, at fair value through profit or loss.

This category includes derivative financial assets or liabilities which are not designated as hedges.

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the Statement of Profit and Loss when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date.

(ii) Cash flow hedge

The Company designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions.

When a derivative is designated as a cash flow hedge instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedge reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the Statement of Profit and Loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedge reserve till the period the hedge was effective remains in cash flow hedge reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedge reserve is transferred to the net profit in the Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedge reserve is reclassified to net profit in the Statement of Profit and Loss.

2.10.3 Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.10.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

2.10.5 Impairment

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenues which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in statement of profit or loss.

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at June 30, 2021 are as follows:

							(In ₹ crore)
Particulars	AmortizedFinancial assets/ liabilities at fairFinancial assets/liabilities at fair			Total carrying	Total fair value
	cost	value through profit or loss		value through OCI		value
		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignated uponinitial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note no. 2.8)	14,395	-	-	-	-	14,395	14,395
Investments (Refer Note no. 2.4)
Preference securities, Equity instruments and others	-	-	45	169	-	214	214
Compulsorily convertible debentures	-	-	7	-	-	7	7
Tax free bonds and government bonds	2,142	-	-	-	-	2,142	2,545 (1)
Liquid mutual fund units	-	-	3,002	-	-	3,002	3,002
Certificates of deposit	-	-	-	-	250	250	250
Non convertible debentures	-	-	-	-	4,382	4,382	4,382
Government Securities	-	-	-	-	5,378	5,378	5,378
Trade receivables (Refer Note no. 2.7)	17,759	-	-	-	-	17,759	17,759
Loans (Refer Note no. 2.5)	203	-	-	-	-	203	203
Other financial assets (Refer Note no. 2.6) (3)	6,138	-	28	-	32	6,198	6,094 (2)
Total	40,637	-	3,082	169	10,042	53,930	54,229
Liabilities:
Trade payables (Refer Note no. 2.13)	1,606	-	-	-	-	1,606	1,606
Lease liabilities (Refer Note no. 2.3)	3,675	-	-	-	-	3,675	3,675
Other financial liabilities (Refer Note no. 2.12)	9,992	-	34	-	3	10,029	10,029
Total	15,273	-	34	-	3	15,310	15,310

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹104 crore

(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows:

							(In ₹ crore)
Particulars	Amortizedcost	Financial assets/ liabilities at fairvalue through profit or loss			Financial assets/liabilities at fairTotal carryingvalue through OCI		Total fair value
		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignated uponinitial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer Note no. 2.8)	17,612	-	-	-	-	17,612	17,612
Investments (Refer Note no. 2.4)
Preference securities, Equity instruments and others	-	-	42	167	-	209	209
Compulsorily convertible debentures	-	-	7	-	-	7	7
Tax free bonds and government bonds	2,144	-	-	-	-	2,144	2,527 (2)
Liquid mutual fund units	-	-	1,326	-	-	1,326	1,326
Redeemable, non-convertible debentures (1)	536	-	-	-	-	536	536
Non convertible debentures	-	-	-	-	4,380	4,380	4,380
Government Securities	-	-	-	-	5,302	5,302	5,302
Trade receivables (Refer Note no. 2.7)	16,394	-	-	-	-	16,394	16,394
Loans (Refer Note no. 2.5)	259	-	-	-	-	259	259
Other financial assets (Refer Note no. 2.6) (4)	5,661	-	153	-	25	5,839	5,747 (3)
Total	42,606	-	1,528	167	9,707	54,008	54,299
Liabilities:
Trade payables (Refer Note no. 2.13)	1,562	-	-	-	-	1,562	1,562
Lease Liabilities (Refer Note no. 2.3)	3,854	-	-	-	-	3,854	3,854
Other financial liabilities (Refer Note no. 2.12)	6,873	-	14	-	-	6,887	6,887
Total	12,289	-	14	-	-	12,303	12,303

(1) The carrying value of debentures approximates fair value as the instruments are at prevailing market rates

(2) On account of fair value changes including interest accrued

(3) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹92 crore

(4) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

For trade receivables and trade payables and other assets and payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value hierarchy of assets and liabilities as at June 30, 2021 is as follows:

				(In ₹ crore)
Particulars	As at June 30,	Fair value measurement at end of the
	2021		reporting period using
Assets		Level 1	Level 2	Level 3
Investments in tax free bonds (Refer Note no. 2.4)	2,531	1,643	888	-
Investments in government bonds (Refer Note no. 2.4)	14	14	-	-
Investments in liquid mutual fund units (Refer Note no. 2.4)	3,002	3,002	-	-
Investments in certificates of deposit (Refer Note no. 2.4)	250	-	250	-
Investments in non convertible debentures (Refer Note no. 2.4)	4,382	2,428	1,954	-
Investments in government securities (Refer Note no. 2.4)	5,378	5,373	5	-
Investments in equity instruments (Refer Note no. 2.4)	2	-	-	2
Investments in preference securities (Refer Note no. 2.4)	167	-	-	167
Investments in compulsorily convertible debentures (Refer Note no. 2.4)	7	-	-	7
Other investments (Refer Note no. 2.4)	45	-	-	45
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer Noteno. 2.6)	60	-	60	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer Noteno. 2.12)	37	-	37	-

During the three months ended June 30, 2021, tax free bonds of ₹537 crore were transferred from Level 2 to Level 1 of fair value hierarchy since these were valued based on quoted price. Further tax free bonds and non-convertible debentures of ₹1,919 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The fair value hierarchy of assets and liabilities as at March 31, 2021 was as follows:

				(In ₹ crore)
Particulars	March 31, 2021	Fair value measurement at end of the reportingperiod using
		Level 1	Level 2	Level 3
Assets
Investments in tax free bonds (Refer Note no. 2.4)	2,513	1,352	1,161	-
Investments in government bonds (Refer Note no. 2.4)	14	14	-	-
Investments in liquid mutual fund units (Refer Note no. 2.4)	1,326	1,326	-	-
Investments in non convertible debentures (Refer Note no. 2.4)	4,380	4,085	295	-
Investments in government securities (Refer Note no. 2.4)	5,302	5,302	-	-
Investments in equity instruments (Refer Note no. 2.4)	2	-	-	2
Investments in preference securities (Refer Note no. 2.4)	165	-	-	165
Investments in compulsorily convertible debentures (Refer Note no. 2.4)	7	-	-	7
Other investments (Refer Note no. 2.4)	42	-	-	42
Derivative financial instruments - gain on outstanding foreign exchange forward and optioncontracts (Refer Note no. 2.6)	178	-	178	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and optioncontracts (Refer Note no. 2.12)	9	-	9	-
Liability towards contingent consideration (Refer Note no. 2.12)	5	-	-	5

During the year ended March 31, 2021, tax free bonds and non-convertible debentures of ₹107 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on Quoted price. Further tax free bonds and non-convertible debentures of ₹1,177 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value.

Majority of investments of the Company are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, fixed maturity plan securities, certificates of deposit, commercial papers, quoted bonds issued by government and quasi-government organizations and non-convertible debentures. The Company invests after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per its risk management program.

2.11 EQUITY

Accounting policy

Ordinary Shares

Ordinary shares are classified as equity share capital . Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects.

Description of reserves

Capital redemption reserve

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Company.

Securities premium

The amount received in excess of the par value of equity shares has been classified as securities premium.

Share options outstanding account

The Share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

Special Economic Zone Re-investment reserve

Other components of equity

Other components of equity include remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in fair value of derivatives designated as cash flow hedges, net of taxes.

Cash flow hedge reserve

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the statement of Profit and Loss upon the occurrence of the related forecasted transaction.

2.11.1 EQUITY SHARE CAPITAL

	(In ₹ crore, except as otherwise stated)
Particulars	As at
	June 30, 2021	March 31, 2021
Authorized
Equity shares, ₹5/- par value
480,00,00,000 (480,00,00,000) equity shares	2,400	2,400

Issued, Subscribed and Paid-Up
Equity shares, ₹5/- par value (1)	2,128	2,130
4,25,68,81,763 (4,26,06,60,846) equity shares fully paid-up
	2,128	2,130

Note : Forfeited shares amounted to ₹1,500/- (₹1,500/-) (1) Refer Note no. 2.20 for details of basic and diluted shares

The Company has only one class of shares referred to as equity shares having a par value of ₹5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depository Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently.

For details of shares reserved for issue under the employee stock option plan of the Company, refer to the note below.

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2021 and March 31, 2021 is set out below:

			(in ₹ crore, except as stated otherwise)
Particulars	As at June 30, 2021		As at March 31, 2021
	Number of shares	Amount	Number of shares	Amount
As at the beginning of the period	426,06,60,846	2,130	425,89,92,566	2,129
Add: Shares issued on exercise of employee stock options	6,10,917	-	16,68,280	1
Less: Shares bought back	43,90,000	2	-	-
As at the end of the period	425,68,81,763	2,128	426,06,60,846	2,130

Capital allocation policy and buyback

Update on buyback announced in April 2021:

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021. At the Maximum buyback price of ₹1,750/- per equity share and the Maximum buyback size of ₹9,200 crore the indicative maximum number of equity shares bought back would be 5,25,71,428 Equity Shares (Maximum buyback shares) comprising approximately 1.23% of the paid-up equity share capital of the Company as of March 31, 2021 and as on June 22, 2021, the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and is expected to be completed on or before December 24, 2021. During the quarter ended June 30, 2021 43,90,000 equity shares were purchased from the stock exchange which includes 11,02,000 shares which have been purchased but not extinguished as of June 30, 2021 and 11,02,000 shares which have been purchased but have not been settled and therefore not extinguished as of June 30, 2021. In accordance with section 69 of the Companies Act, 2013, during the quarter ended June 30, 2021, the Company has created 'Capital Redemption Reserve' of `2 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

2.11.2 DIVIDEND

The amount of per share dividend recognized as distribution to equity shareholders is as follows:

		(in ₹)
Particulars	Three months ended June 30,
	2021	2020
Final Dividend for fiscal 2021	15.00	-
Final dividend for fiscal 2020	-	9.50

2.11.3 Employee Stock Option Plan (ESOP):

Accounting Policy

The Company recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in the statement of profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding account.

Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan) :

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 5,00,00,000 equity shares. To implement the 2019 Plan , up to 4,50,00,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The restricted stock units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and remuneration committee). The performance parameters will be based on a combination of relative total shareholders return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

2015 Stock Incentive Compensation Plan (the 2015 Plan) :

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan (the 2015 Plan). The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). The Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. The plan numbers mentioned above would further be adjusted for the September 2018 bonus issue.

Controlled trust holds 1,51,44,907 and 1,55,14,732 shares as at June 30, 2021 and March 31, 2021, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2021 and March 31, 2021.

The following is the summary of grants during the three months and year ended June 30, 2021 and June 30, 2020 :

		2019 planThree months ended June 30,		2015 plan
Particulars				Three months ended June 30,
	2021	2020	2021	2021
Equity settled RSU
KMPs	73,962	207,808	101,697	204,097
Employees other than KMPs	-	-	-	24,600
Total Grants	73,962	207,808	101,697	228,697

Notes on grants to KMP:

CEO & MD

Under the 2015 plan:

Under the 2019 plan:

Other KMPs

Under the 2015 plan:

Break-up of employee stock compensation expense:

		(in ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Granted to:
KMP	17	17
Employees other than KMP	80	51
Total (1)	97	68
(1) Cash settled stock compensation expense included in the above	5	11

The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options.

The fair value of each equity settled award is estimated on the date of grant using the following assumptions:

Particulars	For options granted in
	Fiscal 2022-Equity SharesRSU	Fiscal 2022-ADS-RSU	Fiscal 2021-Equity SharesRSU	Fiscal 2021-ADS-RSU
Weighted average share price (₹) / ($ ADS)	1,352	18.20	1,253	18.46
Exercise price (₹) / ($ ADS)	5.00	0.07	5.00	0.07
Expected volatility (%)	29-35	30-37	30-35	30-36
Expected life of the option (years)	1-4	1-4	1-4	1-4
Expected dividends (%)	2-3	2-3	2-3	2-3
Risk-free interest rate (%)	4-5	0.1-0.6	4-5	0.1-0.3
Weighted average fair value as on grant date (₹) / ($ ADS)	1,189	16.80	1,124	16.19

The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP.

2.12 OTHER FINANCIAL LIABILITIES

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Non-current
Others
Compensated absences	89	91
Accrued compensation to employees (1)	7	-
Accrued expenses (1)(4)	96	163
Other payables (1)	5	5
Total non-current other financial liabilities	197	259
Current
Unpaid dividends (1)	32	33
Others
Accrued compensation to employees (1)	3,065	2,915
Accrued expenses (1)(4)	3,649	2,944
Retention monies (1)	13	13
Payable for acquisition of business - Contingent consideration (2)	-	5
Capital creditors (1)	290	340
Financial liability relating to buyback (Refer Note no. 2.11) (1)(6)	2,485	-
Compensated absences	1,833	1,640
Other payables (1)(5)	350	460
Foreign currency forward and options contracts (2)(3)	37	9
Total current other financial liabilities	11,754	8,359
Total other financial liabilities	11,951	8,618
(1) Financial liability carried at amortized cost	9,992	6,873
(2) Financial liability carried at fair value through profit or loss	34	14
(3) Financial liability carried at fair value through other comprehensive income	3	-
(4) Includes dues to subsidiaries	112	74
(5) Includes dues to subsidiaries	96	174
Contingent consideration on undiscounted basis	-	5

(6) In accordance with Ind AS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at June 30, 2021 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (Refer to Note 2.11) . The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.

2.13 TRADE PAYABLES

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Trade payables (1)	1,606	1,562
Total trade payables	1,606	1,562
(1) Includes dues to subsidiaries	427	400

2.14 OTHER LIABILITIES

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non current
Accrued defined benefit plan liability	282	274
Others
Deferred income	14	16
Deferred income - government grants	14	14
Withholding taxes and others	350	345
Total non - current other liabilities	660	649

Current
Accrued defined benefit plan liability	1	3
Unearned revenue	3,385	3,145
Others
Tax on buyback (Refer to Note 2.11)	699	-
Deferred income - government grants	2	2
Withholding taxes and others	1,799	1,666
Total current other liabilities	5,886	4,816
Total other liabilities	6,546	5,465

2.15 PROVISIONS

Accounting Policy

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

a. Post sales client support

The Company provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded in the Statement of Profit and Loss. The Company estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

b. Onerous contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract.

Provision for post-sales client support and other provisions

		(In ₹ crore)
Particulars		As at
	June 30, 2021	March 31, 2021
Current
Others
Post-sales client support and others	685	661
Total provisions	685	661

2.16 INCOME TAXES

Accounting Policy

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to securities premium.

Income tax expense in the statement of profit and loss comprises:

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Current taxes	1,697	1,225
Deferred taxes	73	145
Income tax expense	1,770	1,370

Income tax expense for the three months ended June 30, 2021 and June 30, 2020 includes reversal (net of provisions) of ₹21 crore and ₹138 crore, respectively. These reversals pertain to prior periods primarily on account of adjudication of certain disputed matters in favor of the Company and upon filing of tax return across various jurisdictions.

Deferred income tax for the three months ended June 30, 2021 and June 30, 2020, substantially relates to origination and reversal of temporary differences.

2.17 REVENUE FROM OPERATIONS

Accounting Policy

The Company derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Company's core and digital offerings (together called as "software related services"). Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-timeframe basis.

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties, in writing, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services ("performance obligations") to customers in an amount that reflects the consideration the Company has received or expects to receive in exchange for these products or services ("transaction price"). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved.

The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Company allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Company estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services.

The Company's contracts may include variable consideration including rebates, volume discounts and penalties. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Company's costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Company measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Company is unable to determine the standalone selling price, the Company uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses.

Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Company is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Company uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract.

Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS). When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Company uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in which the services are rendered.

Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates whether it controls the good or service before it is transferred to the customer. The Company considers whether it has the primary obligation to fulfil the contract, inventory risk, pricing discretion and other factors to determine whether it controls the goods or service and therefore is acting as a principal or an agent.

The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Company expects to recover them.

Such Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to expenses over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs.

The Company presents revenues net of indirect taxes in its statement of profit and loss.

Revenue from operations for the three months ended June 30, 2021 and June 30, 2020 is as follows:

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Revenue from software services	23,596	20,286
Revenue from products and platforms	118	39
Total revenue from operations	23,714	20,325

The Company has evaluated the impact of COVID – 19 pandemic resulting from (i) the possibility of constraints in our ability to render services which may require revision of estimations of costs to complete the contract because of additional efforts; (ii) onerous obligations; (iii) penalties relating to breaches of service level agreements, and (iv) termination or deferment of contracts by customers. The company has concluded that the impact of COVID – 19 pandemic is not significant based on these estimates. Due to the nature of the COVID – 19 pandemic, the company will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

Disaggregated revenue information

The table below presents disaggregated revenues from contracts with customers by offerings for the three months ended June 30, 2021 and June 30, 2020 respectively. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.

		(In ₹ crore)
		Three months ended June 30,
Particulars	2021	2020
Revenue by offerings
Core	10,737	11,203
Digital	12,977	9,122
Total	23,714	20,325

Digital Services

Digital Services comprise of service and solution offerings of the company that enable our clients to transform their businesses. These include offerings that enhance customer experience, leverage AI-based analytics and big data, engineer digital products and IoT, modernize legacy technology systems, migrate to cloud applications and implement advanced cyber security systems.

Core Services

Core Services comprise traditional offerings of the company that have scaled and industrialized over a number of years. These primarily include application management services, proprietary application development services, independent validation solutions, product engineering and management, infrastructure management services, traditional enterprise application implementation, support and integration services.

Products & platforms

The Company also derives revenues from the sale of products and platforms including Infosys Nia - Artificial Intelligence (AI) platform which applies next-generation AI and machine learning.

Trade receivables and Contract Balances

The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Company's Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones.

The Company's receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time.

Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified as unearned revenue.

Trade receivables and unbilled revenues are presented net of impairment in the Balance Sheet.

2.18 OTHER INCOME, NET

2.18.1 Other income - Accounting Policy

Other income is comprised primarily of interest income, dividend income, gain / loss on investments and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.

2.18.2 Foreign currency - Accounting Policy

Functional currency

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the Statement of Profit and Loss and reported within exchange gains/(losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Nonmonetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. The related revenue and expense are recognized using the same exchange rate.

Government grant

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the net profit in the Statement of Profit and Loss over the periods necessary to match them with the related costs which they are intended to compensate.

Other income for the three months ended June 30, 2021 and June 30, 2020 is as follows:

	(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Interest income on financial assets carried at amortized cost
Tax free bonds and government bonds	38	34
Deposit with Bank and others	239	239
Interest income on financial assets fair valued through other comprehensive income
Non-convertible debentures, certificates of deposit and government securities	147	76
Income on investments carried at fair value through other comprehensive income	-	27
Income on investments carried at fair value through profit or loss
Dividend income on liquid mutual funds	-	1
Gain / (loss) on liquid mutual funds and other investments	23	22
Exchange gains/(losses) on foreign currency forward and options contracts	(90)	32
Exchange gains/(losses) on translation of foreign currency assets and liabilities	143	7
Miscellaneous income, net	70	40
Total other income	570	478

2.19 EXPENSES Accounting Policy 2.19.1 Gratuity and Pension

The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible Indian employees of Infosys. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law.

The Company operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and/or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits.

Liabilities with regard to these defined benefit plans are determined by an external actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Statement of Profit and Loss.

2.19.2 Provident fund

Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

Infosys has an obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India.

2.19.3 Superannuation

Certain employees of Infosys are participants in a defined contribution plan. The Company has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

2.19.4 Compensated absences

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Employee benefit expenses
Salaries including bonus	11,718	10,909
Contribution to provident and other funds	306	235
Share based payments to employees (Refer note no. 2.11)	97	68
Staff welfare	70	10
	12,191	11,222
Cost of software packages and others
For own use	263	221
Third party items bought for service delivery to clients	265	260
	528	481
Other expenses
Power and fuel	23	23
Brand and Marketing	92	45
Short-term leases	4	11
Rates and taxes	52	42
Repairs and Maintenance	212	279
Consumables	7	6
Insurance	33	24
Provision for post-sales client support and others	5	11
Commission to non-whole time directors	2	1
Impairment loss recognized / (reversed) under expected credit loss model	35	86
Auditor's remuneration
Statutory audit fees	1	1
Tax matters	-	-
Other services	-	1
Contributions towards Corporate Social Responsibility	137	113
Others	15	8
	618	651

2.20 BASIC AND DILUTED SHARES USED IN COMPUTING EARNING PER EQUITY SHARE

Accounting Policy

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

2.21 CONTINGENT LIABILITIES AND COMMITMENTS

Accounting Policy

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Contingent liabilities :
Claims against the Company, not acknowledged as debts (1)	3,761	3,753
[Amount paid to statutory authorities ₹5,827 crore (₹5,827 crore) ]
Commitments :
Estimated amount of contracts remaining to be executed on capital contracts and not provided for	568	609
(net of advances and deposits) (2)
Other Commitments*	7	10

* Uncalled capital pertaining to investments

(1) As at June 30, 2021, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹3,428 crore.

The claims against the Company primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of multiple issues of disallowances such as disallowance of profits earned from STP Units and SEZ Units, disallowance of deductions in respect of employment of new employees under section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Appellate Authorities and the management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company's financial position and results of operations.

Amount paid to statutory authorities against the tax claims amounted to ₹5,817 crore.

(2) Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments.

Legal Proceedings

The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company's management reasonably expects based on currently available information, that these legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Company's results of operations or financial condition.

2.22 RELATED PARTY TRANSACTIONS

Refer to the Company's Annual Report for the year ended March 31, 2021 for the full names and other details of the Company's subsidiaries and controlled trusts.

Changes in Subsidiaries

During the three months ended June 30, 2021, the following are the changes in the subsidiaries:

Simplus North America Inc., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective April 27, 2021.
Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus ANZ Pty Ltd, is under liquidation.
Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., is under liquidation.

The Company's material related party transactions during the three months ended June 30, 2021 and June 30, 2020 and outstanding balances as at June 30, 2021 and March 31, 2021 are with its subsidiaries with whom the Company generally enters into transactions which are at arms length and in the ordinary course of business.

Transactions with key management personnel

The table below describes the compensation to key managerial personnel which comprise directors and executive officers:

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers (1)(2)	37	33
Commission and other benefits to non-executive / independent directors	2	1
Total	39	34

(1)Total employee stock compensation expense for the three months ended June 30, 2021 and June 30, 2020 includes a charge of ₹17 crore and ₹17 crore, respectively, towards key managerial personnel (Refer to Note 2.11).

(2) Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.

2.23 SEGMENT REPORTING

The Company publishes this financial statement along with the interim condensed consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the interim condensed consolidated financial statements.

for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Chairman Chief Executive Officer Chief Operating Officer

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Bengaluru July 14, 2021

Chartered Accountants Indiabulls Finance Centre, 27th-32nd Floor, Tower 3, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India.

Phone: +91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Report on the Audit of the Interim Condensed Consolidated Financial Statements

Opinion

We have audited the accompanying interim condensed consolidated financial statements of INFOSYS LIMITED (the "Company"), and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at June 30, 2021, the Condensed Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the three months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed consolidated financial statements give a true and fair view in conformity with the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act"), read with relevant rules issued thereunder and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at June 30, 2021, the consolidated profit and consolidated total comprehensive income, changes in equity and its cash flows for the three months ended on that date.

Basis for Opinion

We conducted our audit of the interim condensed consolidated financial statements in accordance with the Standards on Auditing ("SA"s) specified under section 143 (10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the interim condensed consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the interim condensed consolidated financial statements.

Management's Responsibilities for the Interim Condensed Consolidated Financial Statements

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with Ind AS 34 and other accounting principles generally accepted in India. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of

In preparing the interim condensed consolidated financial statements, the respective Boards of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intend to liquidate their own respective entities or to cease operations, or have no realistic alternative but to do so.

The respective Boards of Directors of the companies included in the Group are also responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the interim condensed consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's internal financial controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the interim condensed consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the interim condensed consolidated financial statements, including the disclosures, and whether the interim condensed consolidated

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of such entities included in the interim condensed consolidated financial statements of which we are independent auditors.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN:

Place: Mumbai Date: July 14, 2021

Condensed Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the three months ended June 30, 2021

Index Page No.

Condensed Consolidated Balance Sheet ……………………………………………………………………………………………………………………	1
Condensed Consolidated Statement of Profit and Loss ……………………………………………………………………………………………………………………	2
Condensed Consolidated Statement of Changes in Equity ……………………………………………………………………………………………………………………	3
Condensed Consolidated Statement of Cash Flows ……………………………………………………………………………………………………………………	5
Overview and notes to the interim condensed Consolidated financial statements
1. Overview
1.1 Company overview ……………………………………………………………………………………………………………………	7
1.2 Basis of preparation of financial statements ……………………………………………………………………………………………………………………	7
1.3 Basis of consolidation ……………………………………………………………………………………………………………………	7
1.4 Use of estimates and judgments ……………………………………………………………………………………………………………………	7
1.5 Critical accounting estimates and judgments……………………………………………………………………………………………………………………	8

2. Notes to the interim condensed Consolidated financial statements
2.1 Business Combination ……………………………………………………………………………………………………………………………………………	10
2.2 Property, plant and equipment ……………………………………………………………………………………………………………………	11
2.3 Goodwill and intangible assets……………………………………………………………………………………………………………………	12
2.4 Investments ……………………………………………………………………………………………………………………………………………	13
2.5 Loans ……………………………………………………………………………………………………………………………………………	14

2.6 Other financial assets ……………………………………………………………………………………………………………………………………………	14
2.7 Trade receivables ……………………………………………………………………………………………………………………………………………	14
2.8 Cash and cash equivalents ……………………………………………………………………………………………………………………………………………	15
2.9 Other assets ……………………………………………………………………………………………………………………………………………	15
2.10 Financial instruments ……………………………………………………………………………………………………………………………………………	16
2.11 Equity ……………………………………………………………………………………………………………………………………………	20
2.12 Other financial liabilities ……………………………………………………………………………………………………………………………………………………	23
2.13 Other liabilities ……………………………………………………………………………………………………………………………………………	23
2.14 Provisions ……………………………………………………………………………………………………………………………………………	24
2.15 Income taxes ……………………………………………………………………………………………………………………………………………	25
2.16 Revenue from operations ……………………………………………………………………………………………………………………………………………	26
2.17 Other income, net ……………………………………………………………………………………………………………………………………………	28
2.18 Expenses ……………………………………………………………………………………………………………………………………………	29
2.19 Leases ……………………………………………………………………………………………………………………………………………	31
2.20 Basic and diluted shares used in computing earnings per equity share ……………………………………………………………………………………………………………………………………………	33
2.21 Contingent liabilities and commitments ………………………………………………………………………………33
2.22 Related party transactions ……………………………………………………………………………………………………………………………………………	34
2.23 Segment reporting ……………………………………………………………………………………………………………………………………………	35

2.24 Function wise classification of Condensed Consolidated Statement of Profit and Loss ……………………………………………………………………………………………………………………………………………	36

			(In ₹ crore )
Condensed Consolidated Balance Sheets as at	Note	June 30, 2021	March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment	2.2	12,641	12,560
Right-of-use assets	2.19	4,560	4,794
Capital work-in-progress		779	922
Goodwill	2.3	6,197	6,079
Other intangible assets		2,024	2,072
Financial assets:
Investments	2.4	11,989	11,863
Loans	2.5	46	32
Other financial assets	2.6	1,207	1,141
Deferred tax assets (net)		1,015	1,098
Income tax assets (net)		5,801	5,811
Other non-current assets	2.9	1,435	1,281
Total non-current assets		47,694	47,653
Current assets
Financial assets:
Investments	2.4	4,664	2,342

Trade receivables	2.7	20,421	19,294
Cash and cash equivalents	2.8	21,339	24,714
Loans	2.5	191	159
Other financial assets	2.6	7,006	6,410
Other Current assets	2.9	8,171	7,814
Total current assets		61,792	60,733
Total assets		109,486	108,386
EQUITY AND LIABILITIES
Equity
Equity share capital	2.11	2,122	2,124
Other equity		69,749	74,227
Total equity attributable to equity holders of the Company		71,871	76,351
Non-controlling interests		442	431
Total equity		72,313	76,782

Liabilities
Non-current liabilities
Financial Liabilities
Lease liabilities	2.19	4,391	4,587
Other financial liabilities	2.12	1,628	1,514
Deferred tax liabilities (net)		840	875
Other non-current liabilities	2.13	776	763
Total non-current liabilities		7,635	7,739
Current liabilities
Financial Liabilities
Lease liabilities	2.19	740	738
Trade payables		2,668	2,645
Other financial liabilities	2.12	15,140	11,390
Other current liabilities	2.13	7,368	6,233
Provisions	2.14	726	713
Income tax liabilities (net)		2,896	2,146
Total current liabilities		29,538	23,865
Total equity and liabilities		109,486	108,386

The accompanying notes form an integral part of the interim condensed consolidated financial statements

As per our report of even date attached

Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

		(In ₹ crore, except equity share and per equity share data)
Condensed Consolidated Statement of Profit and LossRevenue from operationsOther income, netTotal incomeCurrent taxDeferred taxExchange differences on translation of foreign operationsFair value changes on investments, netProfit attributable to:Owners of the CompanyNon-controlling interestsTotal comprehensive income attributable to:Owners of the CompanyNon-controlling interestsEarnings per Equity shareEquity shares of par value ₹5/- eachBasic (₹)Diluted (₹)	Note No.	Three months ended June 30,
		2021	2020
	2.16	27,896	23,665
	2.17	622	475
		28,518	24,140
Expenses
Employee benefit expenses	2.18	15,230	13,604
Cost of technical sub-contractors		2,454	1,626
Travel expenses		133	116
Cost of software packages and others	2.18	1,289	893
Communication expenses		147	163
Consultancy and professional charges		396	262
Depreciation and amortisation expenses		829	756
Finance cost		49	48
Other expenses	2.18	815	880
Total expenses		21,342	18,348
Profit before tax		7,176	5,792
Tax expense:
	2.15	1,937	1,321
	2.15	38	199
Profit for the period		5,201	4,272

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		(33)	147
Equity instruments through other comprehensive income, net		1	(1)
		(32)	146
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		5	(6)
		290	164
		38	54
		333	212
Total other comprehensive income /(loss), net of tax		301	358

Total comprehensive income for the period		5,502	4,630


		5,195	4,233
		6	39
		5,201	4,272
		5,491	4,586
		11	44
		5,502	4,630


		12.24	9.98
		12.21	9.97

Weighted average equity shares used in computing earnings per equity share	2.20
Basic		4,245,516,974	4,241,101,049
Diluted		4,253,310,685	4,246,278,846

The accompanying notes form an integral part of the interim condensed consolidated financial statements

As per our report of even date attached

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

Chartered Accountants

Firm's Registration No :

117366W/ W-100018

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Membership No. 039826 and Managing Director and Whole-time Director

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Condensed Consolidated Statement of Changes in Equity

(In ₹ crore )

Particulars								OTHER EQUITY
					RESERVES & SURPLUS						Other comprehensive income
EquitySharecapital (1)		Capitalreserve	Capitalredemptionreserve	SecuritiesPremium	Retainedearnings	Generalreserve	ShareOptionsOutstandingAccount	SpecialEconomicZone Reinvestment(2)reserve	Other(3)reserves	Equityinstrumentsthrough othercomprehensiveincome	Exchangedifferences ontranslating thefinancialstatements of aforeign operation	Effectiveportion ofCash FlowHedges	Other items ofothercomprehensiveincome / (loss)	Total equityattributableto equityholders oftheCompany	Noncontrollinginterest	Total equity
Balance as at April 1, 2020	2,122	54	111	282	56,309	1,158	297	4,070	6	39	1,207	(15)	(190)	65,450	394	65,844
Changes in equity for the three months ended June 30, 2020
Profit for the period	—	—	—	—	4,233	—	—	—	—	—	—	—	—	4,233	39	4,272
Remeasurement of the net defined benefit liability/asset*	—	—	—	—	—	—	—	—	—	—	—	—	147	147	—	147
Equity instruments through other comprehensive income*	—	—	—	—	—	—	—	—	—	(1)	—	—	—	(1)	—	(1)
Fair value changes on derivatives designated as cash flow hedge*	—	—	—	—	—	—	—	—	—	—	—	(6)	—	(6)	—	(6)
Exchange differences on translation of foreign operations	—	—	—	—	—	—	—	—	—	—	159	—	—	159	5	164
Fair value changes on investments*	—	—	—	—	—	—	—	—	—	—	—	—	54	54	—	54
Total Comprehensive income for the period	—	—	—	—	4,233	—	—	—	—	(1)	159	(6)	201	4,586	44	4,630
Shares issued on exercise of employee stock options	—	—	—	3	—	—	—	—	—	—	—	—	—	3	—	3
Employee stock compensation expense (Refer to Note 2.11)	—	—	—	—	—	—	63	—	—	—	—	—	—	63	—	63
Exercise of stock options	—	—	—	37	—	—	(37)	—	—	—	—	—	—	—	—	—
Transfer on account of options not exercised	—	—	—	—	—	1	(1)	—	—	—	—	—	—	—	—	—
Dividends (1)	—	—	—	—	(4,029)	—	—	—	—	—	—	—	—	(4,029)	—	(4,029)
Transfer to general reserve	—	—	—	—	(1,554)	1,554	—	—	—	—	—	—	—	—	—	—
Transferred to Special Economic Zone Re-investment reserve	—	—	—	—	(731)	—	—	731	—	—	—	—	—	—	—	—
Transferred from Special Economic Zone Re-investment reserve on
utilization	—	—	—	—	314	—	—	(314)	—	—	—	—	—	—	—	—
Balance as at June 30, 2020	2,122	54	111	322	54,542	2,713	322	4,487	6	38	1,366	(21)	11	66,073	438	66,511

(In ₹ crore)

Particulars								OTHER EQUITY
					RESERVES & SURPLUS						Other comprehensive income			Total equity
EquitySharecapital (1)		Capitalreserve	Capitalredemptionreserve	SecuritiesPremium	Retainedearnings	Generalreserve	ShareOptionsOutstandingAccount	SpecialEconomicZone Reinvestment(2)reserve	Other(3)reserves	Equityinstrumentsthrough othercomprehensiveincome	Exchangedifferences ontranslating thefinancialstatements of aforeign operation	Effectiveportion ofCash FlowHedges	Other items ofothercomprehensiveincome / (loss)	attributableto equityholders oftheCompany	Noncontrollinginterest	Total equity
Balance as at April 1, 2021	2,124	54	111	600	62,643	2,715	372	6,385	6	158	1,331	10	(158)	76,351	431	76,782
Changes in equity for the three months ended June 30, 2021
Profit for the period	—	—	—	—	5,195	—	—	—	—	—	—	—	—	5,195	6	5,201
Remeasurement of the net defined benefit liability/asset*	—	—	—	—	—	—	—	—	—	—	—	—	(33)	(33)	—	(33)
Equity instruments through other comprehensive income*	—	—	—	—	—	—	—	—	—	1	—	—	—	1	—	1
Fair value changes on derivatives designated as cash flow hedge*	—	—	—	—	—	—	—	—	—	—	—	5	—	5	—	5
Exchange differences on translation of foreign operations	—	—	—	—	—	—	—	—	—	—	285	—	—	285	5	290
Fair value changes on investments*	—	—	—	—	—	—	—	—	—	—	—	—	38	38	—	38
Total Comprehensive income for the period	—	—	—	—	5,195	—	—	—	—	1	285	5	5	5,491	11	5,502
Shares issued on exercise of employee stock options	—	—	—	8	—	—	—	—	—	—	—	—	—	8	—	8
Employee stock compensation expense (Refer to Note 2.11)	—	—	—	—	—	—	103	—	—	—	—	—	—	103	—	103
Buyback of equity shares (Refer to Notes 2.11 and 2.12) **	(2)	—	—	—	(2,848)	(849)	—	—	—	—	—	—	—	(3,699)	—	(3,699)
Transaction costs relating to buyback*	—	—	—	—	—	(17)	—	—	—	—	—	—	—	(17)	—	(17)
Amount transferred to capital redemption reserve upon buyback	—	—	2	—	—	(2)	—	—	—	—	—	—	—	—	—	—
Transfer on account of exercise of stock options	—	—	—	51	—	—	(51)	—	—	—	—	—	—	—	—	—
Income tax benefit arising on exercise of stock options	—	—	—	3	—	—	—	—	—	—	—	—	—	3	—	3
Dividends (1)	—	—	—	—	(6,369)	—	—	—	—	—	—	—	—	(6,369)	—	(6,369)
Transferred to Special Economic Zone Re-investment reserve	—	—	—	—	(748)	—	—	748	—	—	—	—	—	—	—	—
Transferred from Special Economic Zone Re-investment reserve onutilization	—	—	—	—	218	—	—	(218)	—	—	—	—	—	—	—	—
Balance as at June 30, 2021	2,122	54	113	662	58,091	1,847	424	6,915	6	159	1,616	15	(153)	71,871	442	72,313

* Net of tax ** Including tax on buyback of ` 699 crore

(1) Net of treasury shares

(2)The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.

(3)Under the Swiss Code of Obligation, few subsidiaries of Infosys Lodestone are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses or for measures designed to sustain the Company through difficult times, to prevent unemployment or to mitigate its consequences.

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm's Registration No : 117366W/ W-100018

Sanjiv V. Pilgaonkar Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Partner Chairman Chief Executive Officer Chief Operating Officer

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Membership No. 039826 and Managing Director and Whole-time Director

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru

A.G.S. Manikantha Company Secretary

July 14, 2021 July 14, 2021

Condensed Consolidated Statement of Cash Flows

Accounting policy

			(In ₹ crore)
Particulars	Note No.	Three months ended June 30,
		2021	2020
Cash flow from operating activities
Profit for the period		5,201	4,272
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense	2.15	1,975	1,520
Depreciation and amortization		829	756
Interest and dividend income	2.18	(486)	(381)
Finance cost		49	48
Impairment loss recognized / (reversed) under expected credit loss model		44	99
Exchange differences on translation of assets and liabilities, net		115	24
Stock compensation expense	2.11	110	76
Other adjustments		(90)	19
Changes in assets and liabilities
Trade receivables and unbilled revenue		(2,242)	(436)
Loans, other financial assets and other assets		188	86
Trade payables		22	(89)
Other financial liabilities, other liabilities and provisions		1,909	393
Cash generated from operations		7,624	6,387
Income taxes paid		(1,161)	(717)
Net cash generated by operating activities		6,463	5,670
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles		(506)	(417)
Deposits placed with corporation		(166)	(121)
Interest and dividend received		583	376
Payment of contingent consideration pertaining to acquisition of business		(53)	(150)
Escrow and other deposits pertaining to Buyback	2.6	(320)	—
Other receipts		12	12
Other payments		(22)	—
Payments to acquire Investments
Liquid mutual funds and fixed maturity plan securities		(11,781)	(5,050)
Certificates of deposit		(249)	—
Government securities		(404)	(3,076)
Others		(3)	(1)
Proceeds on sale of Investments
Non-convertible debentures		50	345
Government securities		—	822
Certificates of deposit		—	250
Liquid mutual funds and fixed maturity plan securities		10,012	5,785
Others		—	22
Net cash (used in) / from investing activities		(2,847)	(1,203)

Cash flows from financing activities:
Payment of lease liabilities		(208)	(139)
Payment of dividends		(6,370)	—
Payment of dividend to non-controlling interest of subsidiary		—	—
Shares issued on exercise of employee stock options		8	3
Other receipts		45	—
Buyback of equity shares including transaction cost		(532)	—
Net cash used in financing activities		(7,057)	(136)
Net increase / (decrease) in cash and cash equivalents		(3,441)	4,331
Cash and cash equivalents at the beginning of the period	2.8	24,714	18,649
Effect of exchange rate changes on cash and cash equivalents		66	59
Cash and cash equivalents at the end of the period		21,339	23,039
Supplementary information:
Restricted cash balance	2.8	528	387

Closing cash and cash equivalents as per consolidated statement of cash flows		21,339	23,039
Less: Earmarked bank balance for dividend		—	(4,046)
Closing cash and cash equivalents as per Consolidated Balance Sheet	2.8	21,339	18,993

The accompanying notes form an integral part of the interim condensed consolidated financial statements

As per our report of even date attached Chartered Accountants Firm's Registration No : 117366W/ W-100018

for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited

A.G.S. Manikantha Company Secretary

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

Mumbai Bengaluru July 14, 2021 July 14, 2021

Notes to the interim condensed Consolidated financial statements

1. Overview

1.1 Company overview

Infosys together with its subsidiaries and controlled trusts is hereinafter referred to as 'the Group'.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronics city, Hosur Road, Bengaluru 560100, Karnataka, India. The Company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company's American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE).

The Group's interim condensed consolidated financial statements are approved for issue by the Company's Board of Directors on July 14, 2021.

1.2 Basis of preparation of financial statements

These interim condensed consolidated financial statements are prepared in accordance with Indian Accounting Standard 34 (Ind AS 34), under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ('the Act') and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report for the year ended March 31, 2021. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

1.3 Basis of consolidation

The financial statements of the Group companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. These financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the Company, are excluded.

1.4 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note no. 1.5 . Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements.

Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):

The Group has considered the possible effects that may result from COVID-19 pandemic in the preparation of these interim condensed consolidated financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of the COVID-19 pandemic, the Group has, at the date of approval of these condensed financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 pandemic on the Group's financial statements may differ from that estimated as at the date of approval of these interim condensed consolidated financial statements.

1.5 Critical accounting estimates and judgments

a. Revenue recognition

Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Group's costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables.

The Group uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-ofcompletion method requires the Group to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgment and is assessed throughout the period of the contract to reflect any changes based on the latest available information.

Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

b. Income taxes

The Group's two major tax jurisdictions are India and the U.S., though the Company also files tax returns in other overseas jurisdictions.

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain tax positions.

In assessing the realizability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer note no. 2.15 and note no. 2.21).

c. Business combinations and intangible assets

Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by the Management.

d. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology (Refer to Note 2.2) .

e. Impairment of Goodwill

f. Leases

g. Allowance for credit losses on receivables and unbilled revenue

2.1 BUSINESS COMBINATIONS

Accounting policy

Business combinations have been accounted for using the acquisition method under the provisions of Ind AS 103, Business Combinations.

The purchase price in an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The purchase price also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition. Contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in the Consolidated Statement of Profit and Loss.

Business combinations between entities under common control is accounted for at carrying value of the assets acquired and liabilities assumed in the Group's consolidated financial statements.

2.2 PROPERTY, PLANT AND EQUIPMENT

Accounting policy

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:

Buildings (1)	22-25 years
Plant and machinery (1)(2)	5 years
Office equipment	5 years
Computer equipment (1)	3-5 years
Furniture and fixtures (1)	5 years
Vehicles(1)	5 years
Leasehold improvements	Lower of useful life of the asset or lease term

(1)Based on technical evaluation, the Management believes that the useful lives as given above best represent the period over which the Management expects to use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013

(2) Includes Solar plant with a useful life of 20 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Consolidated Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Consolidated Statement of Profit and Loss.

Impairment

If such assets are considered to be impaired, the impairment to be recognized in the Consolidated Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Consolidated Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2021 are as follows:

									(In ₹ crore)
Particulars	Land -	Buildings	Plant and	Office	Computer	Furniture	Leasehold	Vehicles	Total
	Freehold	(1)	machinery	Equipment	equipment	and fixtures	Improvements
Gross carrying value as at April 1, 2021	1,399	10,565	3,296	1,371	7,639	2,149	1,188	44	27,651
Additions	1	152	25	18	336	16	38	—	586
Deletions	—	—	(1)	(4)	(52)	(2)	(9)	—	(68)
Translation difference	—	28	4	2	17	5	9	—	65
Gross carrying value as at June 30, 2021	1,400	10,745	3,324	1,387	7,940	2,168	1,226	44	28,234
Accumulated depreciation as at April 1, 2021	—	(3,675)	(2,425)	(1,043)	(5,636)	(1,580)	(700)	(32)	(15,091)
Depreciation	—	(101)	(57)	(29)	(247)	(53)	(50)	(1)	(538)
Accumulated depreciation on deletions	—	—	1	4	52	2	9	—	68
Translation difference	—	(4)	(3)	(2)	(13)	(4)	(6)	—	(32)
Accumulated depreciation as at June 30, 2021	—	(3,780)	(2,484)	(1,070)	(5,844)	(1,635)	(747)	(33)	(15,593)
Carrying value as at April 1, 2021	1,399	6,890	871	328	2,003	569	488	12	12,560
Carrying value as at June 30, 2021	1,400	6,965	840	317	2,096	533	479	11	12,641

The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2020 are as follows:

									(In ₹ crore)
Particulars	Land -	Buildings	Plant and	Office	Computer	Furniture	Leasehold	Vehicles	Total
	Freehold	(1)	machinery	Equipment	equipment	and fixtures	Improvements
Gross carrying value as at April 1, 2020	1,318	10,016	3,185	1,265	6,676	2,073	1,063	45	25,641
Additions	69	39	14	14	346	12	16	—	510
Deletions	—	—	(1)	(3)	(10)	(2)	(8)	—	(24)
Translation difference	—	2	—	—	7	—	2	—	11
Gross carrying value as at June 30, 2020	1,387	10,057	3,198	1,276	7,019	2,083	1,073	45	26,138
Accumulated depreciation as at April 1, 2020	—	(3,284)	(2,145)	(934)	(4,885)	(1,380)	(550)	(28)	(13,206)
Depreciation	—	(95)	(76)	(32)	(206)	(57)	(43)	(2)	(511)
Accumulated depreciation on deletions	—	—	1	3	10	2	8	—	24
Translation difference	—	(1)	—	—	(4)	—	—	—	(5)
Accumulated depreciation as at June 30, 2020	—	(3,380)	(2,220)	(963)	(5,085)	(1,435)	(585)	(30)	(13,698)
Carrying value as at April 1, 2020	1,318	6,732	1,040	331	1,791	693	513	17	12,435
Carrying value as at June 30, 2020	1,387	6,677	978	313	1,934	648	488	15	12,440

(1) Buildings include ₹250/- being the value of five shares of ₹50/- each in Mittal Towers Premises Co-operative Society Limited.

The aggregate depreciation has been included under depreciation and amortisation expense in the Consolidated Statement of Profit and Loss.

2.3 GOODWILL AND INTANGIBLE ASSETS

2.3.1 Goodwill

Accounting policy

Goodwill represents the purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquired entity. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized in capital reserve. Goodwill is measured at cost less accumulated impairment losses.

Impairment

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGU) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU.

Total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. An impairment loss on goodwill is recognized in the Consolidated Statement of Profit and Loss and is not reversed in the subsequent period.

Following is a summary of changes in the carrying amount of goodwill:

		(In ₹ crore)
Particulars		As at
		June 30, 2021 March 31, 2021
Carrying value at the beginning	6,079	5,286
Goodwill on acquisitions	—	758
Translation differences	118	35
Carrying value at the end	6,197	6,079

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition.

2.3.2 Intangible assets

Accounting policy

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances). Amortization methods and useful lives are reviewed periodically including at each financial year end.

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use.

Impairment

If such assets are considered to be impaired, the impairment to be recognized in the Consolidated Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Consolidated Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization) had no impairment loss been recognized for the asset in prior years.

2.4 INVESTMENTS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non-current
Unquoted
Investments carried at fair value through other comprehensive income
Preference securities	167	165
Equity instruments	2	2
Investments carried at fair value through profit and loss	169	167
Preference securities	11	11
Compulsorily convertible debentures	7	7
Others (1)	78	74
	96	92
Quoted
Investments carried at amortized cost
Tax free bonds	2,108	2,131
Government bonds	22	21
	2,130	2,152
Investments carried at fair value through other comprehensive income
Non convertible debentures	3,732	3,985
Government securities	5,862	5,467
	9,594	9,452
Total non-current investments	11,989	11,863

CurrentUnquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units	3,294	1,500
	3,294	1,500

Investments carried at fair value through other comprehensive income
Certificates of deposit	250	—
	250	—
Quoted
Investments carried at amortized cost
Tax free bonds	20	—
	20	—
Investments carried at fair value through other comprehensive income
Non convertible debentures	1,100	842
	1,100	842
Total current investments	4,664	2,342

Total investments	16,653	14,205
Aggregate amount of quoted investments	12,844	12,446
Market value of quoted investments (including interest accrued), current	1,126	843
Market value of quoted investments (including interest accrued), non current	12,142	11,997
Aggregate amount of unquoted investments	3,809	1,759
Investments carried at amortized cost	2,150	2,152
Investments carried at fair value through other comprehensive income	11,113	10,461
Investments carried at fair value through profit or loss	3,390	1,592

(1) Uncalled capital commitments outstanding as at June 30, 2021 and March 31, 2021 was ₹40 crore and ₹42 crore, respectively.

Refer to Note 2.10 for Accounting policies on Financial Instruments.

Method of fair valuation:			(In ₹ crore)
Class of investment	Method	Fair value as at
		June 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	3,294	1,500
Tax free bonds and government bonds	Quoted price and market observable inputs	2,554	2,536
Non-convertible debentures	Quoted price and market observable inputs	4,832	4,827
Government securities	Quoted price	5,862	5,467
Certificate of deposits	Market observable inputs	250	—
Unquoted equity and preference securities - carried at fair value	Discounted cash flows method, Market multiples method,
through other comprehensive income	Option pricing model	169	167
Unquoted equity and preference securities - carried at fair value	Discounted cash flows method, Market multiples method,
through profit and loss	Option pricing model	11	11
Unquoted compulsorily convertible debentures - carried at fair value
through profit and loss	Discounted cash flows method	7	7
	Discounted cash flows method, Market multiples method,
Others	Option pricing model	78	74
Total		17,057	14,589

Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

2.5 LOANS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non Current
Unsecured, considered good
Other loans
Loans to employees	46	32
	46	32
Unsecured, considered doubtful
Other loans
Loans to employees	24	28
	70	60
Less: Allowance for doubtful loans to employees	24	28
Total non-current loans	46	32
Current
Unsecured, considered good
Other loans
Loans to employees	191	159
Total current loans	191	159

Total loans	237	191

2.6 OTHER FINANCIAL ASSETS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non Current
Security deposits (1)	49	49
Rental deposits (1)	187	217
Unbilled revenues (1)#	461	399
Net investment in sublease of right of use asset (1)	348	350
Restricted deposits(1)*	61	42
Others (1)	101	84
Total non-current other financial assets	1,207	1,141
Current
Security deposits (1)	6	6
Rental deposits (1)	58	30
Restricted deposits (1)*	2,162	2,016
Unbilled revenues (1)#	3,416	3,173
Interest accrued but not due (1)	513	620
Foreign currency forward and options contracts (2) (3)	64	188
Escrow and other deposits pertaining to buyback (Refer to Note 2.11) (1)	320	—
Net investment in sublease of right of use asset (1)	39	38
Others (1)	428	339
Total current other financial assets	7,006	6,410

Total other financial assets	8,213	7,551

(1) Financial assets carried at amortized cost	8,149	7,363
(2) Financial assets carried at fair value through other comprehensive income	33	25
(3) Financial assets carried at fair value through profit or loss	31	163

* Restricted deposits represent deposits with financial institutions to settle employee-related obligations as and when they arise during the normal course of business. # Classified as financial asset as right to consideration is unconditional and is due only after a passage of time.

2.7TRADE RECEIVABLES
		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Current
Unsecured
Considered good	20,421	19,294
Considered doubtful	657	619
	21,078	19,913
Less: Allowance for credit loss	657	619
Total trade receivables(1)	20,421	19,294
(1) Includes dues from companies where directors are interested	—	—

2.8 CASH AND CASH EQUIVALENTS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Balances with banks
In current and deposit accounts	16,875	20,069
Cash on hand	—	—
Others
Deposits with financial institutions	4,464	4,645
Total cash and cash equivalents	21,339	24,714
Balances with banks in unpaid dividend accounts	32	33
Deposit with more than 12 months maturity	10,837	13,659
Balances with banks held as margin money deposits againstguarantees	71	71

Cash and cash equivalents as at June 30, 2021 and March 31, 2021 include restricted cash and bank balances of ₹528 crore and ₹504 crore, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company and bank balances held as margin money deposits against guarantees.

2.9 OTHER ASSETS

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non Current
Capital advances	140	141
Advances other than capital advances
Others
Withholding taxes and others	705	705
Unbilled revenues #	261	195
Defined benefit plan assets	23	19
Prepaid expenses	78	78
Deferred Contract Cost	228	143
Total Non-Current other assets	1,435	1,281

Current
Advances other than capital advances
Payment to vendors for supply of goods	233	141
Others
Unbilled revenues #	5,040	4,354
Withholding taxes and others	1,646	2,091
Prepaid expenses	1,176	1,160
Deferred Contract Cost	75	65
Other receivables	1	3
Total Current other assets	8,171	7,814
Total other assets	9,606	9,095

Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

Withholding taxes and others primarily consist of input tax credits and Cenvat recoverable from Government of India.

2.10 FINANCIAL INSTRUMENTS Accounting policy

2.10.1 Initial recognition

2.10.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortized cost

(ii) Financial assets at fair value through other comprehensive income (FVOCI)

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments

b. Derivative financial instruments

(i) Financial assets or financial liabilities, at fair value through profit or loss.

This category includes derivative financial assets or liabilities which are not designated as hedges.

Although the Group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the Consolidated Statement of Profit and Loss when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date.

(ii) Cash flow hedge

The Group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the Consolidated Statement of Profit and Loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the Consolidated Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the Consolidated Statement of Profit and Loss.

2.10.3 Derecognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.10.4 Fair value of financial instruments

Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximates fair value due to the short maturity of these instruments.

2.10.5 Impairment

The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in Consolidated Statement of Profit and Loss.

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at June 30, 2021 are as follows:

							(In ₹ crore)
Particulars	Amortized cost	Financial assets/ liabilities atfair value through profit or loss		Financial assets/liabilities at fair valuethrough OCI		Total carrying value	Total fair value
		Designatedupon initialrecognition	Mandatory	Equityinstrumentsdesignated uponinitial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.8)Investments (Refer to Note 2.4)	21,339	—	—	—	—	21,339	21,339
Equity and preference securities	—	—	11	169	—	180	180
Compulsorily convertible debentures	—	—	7	—	—	7	7
Tax-free bonds and government bonds	2,150	—	—	—	—	2,150	2,554 (1)
Liquid mutual fund units	—	—	3,294	—	—	3,294	3,294
Non convertible debentures	—	—	—	—	4,832	4,832	4,832
Government securities	—	—	—	—	5,862	5,862	5,862
Certificate of deposits	—	—	—	—	250	250	250
Other investments	—	—	78	—	—	78	78
Trade receivables (Refer to Note 2.7)	20,421	—	—	—	—	20,421	20,421
Loans (Refer to Note 2.5)	237	—	—	—	—	237	237
Other financials assets (Refer to Note 2.6) (3)	8,149	—	31	—	33	8,213	8,109 (2)
Total	52,296	—	3,421	169	10,977	66,863	67,163
Liabilities:
Trade payables	2,668	—	—	—	—	2,668	2,668
Lease liabilities (Refer to Note 2.19)	5,131	—	—	—	—	5,131	5,131
Financial Liability under option arrangements(Refer to Note 2.12)	—	—	713	—	—	713	713
Other financial liabilities (Refer to Note 2.12)	13,560	—	140	—	3	13,703	13,703
Total	21,359	—	853	—	3	22,215	22,215

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹104 crore

(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

The carrying value and fair value of financial instruments by categories as at March 31, 2021 were as follows:

							(In ₹ crore)
Particulars	Amortisedcost	Financial assets/ liabilities atfair value through profit or		Financial assets/liabilities at fairvalue through OCI		Total carryingvalue	Total fairvalue
		lossDesignatedupon initialrecognition	Mandatory	Equityinstrumentsdesignated uponinitialrecognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.8)Investments (Refer to Note 2.4)	24,714	—	—	—	—	24,714	24,714
Equity and preference securities	—	—	11	167	—	178	178
Compulsorily convertible debentures	—	—	7	—	—	7	7
Tax-free bonds and government bonds	2,152	—	—	—	—	2,152	2,536 (1)
Liquid mutual fund units	—	—	1,500	—	—	1,500	1,500
Non convertible debentures	—	—	—	—	4,827	4,827	4,827
Government securities	—	—	—	—	5,467	5,467	5,467
Other investments	—	—	74	—	—	74	74
Trade receivables (Refer to Note 2.7)	19,294	—	—	—	—	19,294	19,294
Loans (Refer to Note 2.5)	191	—	—	—	—	191	191
Other financials assets (Refer to Note 2.6) (3)	7,363	—	163	—	25	7,551	7,459 (2)
Total	53,714	—	1,755	167	10,319	65,955	66,247
Liabilities:
Trade payables	2,645	—	—	—	—	2,645	2,645
Lease liabilities (Refer to Note 2.19)	5,325	—	—	—	—	5,325	5,325
Financial Liability under option arrangements(Refer to Note 2.12)	—	—	693	—	—	693	693
Other financial liabilities (Refer to Note 2.12)	9,877	—	217	—	—	10,094	10,094
Total	17,847	—	910	—	—	18,757	18,757

(1) On account of fair value changes including interest accrued

(2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹92 crore

(3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at June 30, 2021:

				(In ₹ crore)
Particulars	As at June 30,	Fair value measurement at end of the reporting
	2021		period using
		Level 1	Level 2	Level 3
Assets
Investments in liquid mutual funds (Refer to Note 2.4)	3,294	3,294	—	—
Investments in tax-free bonds (Refer to Note 2.4)	2,531	1,643	888	—
Investments in government bonds (Refer to Note 2.4)	23	23	—	—
Investments in non convertible debentures (Refer to Note 2.4)	4,832	2,743	2,089	—
Investment in government securities (Refer to Note 2.4)	5,862	5,857	5	—
Investments in equity instruments (Refer to Note 2.4)	2	—	—	2
Investments in preference securities (Refer to Note 2.4)	178	—	—	178
Investments in certificate of deposits (Refer to Note 2.4)	250	—	250	—
Investments in compulsorily convertible debentures (Refer to Note 2.4)	7	—	—	7
Other investments (Refer to Note 2.4)	78	—	—	78
Derivative financial instruments - gain on outstanding foreign exchange forward and option	64	—	64	—
contracts (Refer to Note 2.6)
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option	50	—	50	—
contracts (Refer to Note 2.12)
Financial liability under option arrangements	713	—	—	713
Liability towards contingent consideration (Refer to Note 2.12) (1)	93	—	—	93

(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the three months ended June 30, 2021, tax free bonds of ₹537 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, tax free bonds and non-convertible debentures of ₹2,053 crore was transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The fair value hierarchy of assets and liabilities as at March 31, 2021 was as follows:

Particulars Level 1 Level 2 Level 3 Assets Investments in liquid mutual funds (Refer to Note 2.4) 1,500 1,500 — — Investments in tax free bonds (Refer to Note 2.4) 2,513 1,352 1,161 — Investments in government bonds (Refer to Note 2.4) 23 23 — — Investments in non convertible debentures (Refer to Note 2.4) 4,827 4,532 295 — Investment in government securities (Refer to Note 2.4) 5,467 5,467 — — Investments in equity instruments (Refer to Note 2.4) 2 — — 2 Investments in preference securities (Refer to Note 2.4) 176 — — 176 Investments in compulsorily convertible debentures (Refer to Note 2.4) 7 — — 7 Other investments (Refer to Note 2.4) 74 — — 74 188 — 188 — Liabilities 56 — 56 — 693 — — 693 Liability towards contingent consideration (Refer to Note 2.12) (1) 161 — — 161 Fair value measurement at end of the reporting period using As at March 31, 2021 Financial liability under option arrangements Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to Note 2.6) Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer to Note 2.12)

(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the year ended March 31, 2021, tax free bonds and non-convertible debentures of ₹107 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, tax free bonds and non-convertible debentures of ₹1,177 crore was transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value.

(In ₹ crore)

2.11 EQUITY

Accounting policy

Ordinary Shares

Treasury Shares

Description of reserves

Capital Redemption Reserve

Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

Securities premium

The amount received in excess of the par value has been classified as securities premium.

Share options outstanding account

The share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

Special Economic Zone Re-investment reserve

Other components of equity

Currency translation reserve

The exchange differences arising from the translation of financial statements of foreign subsidiaries with functional currency other than Indian rupees is recognized in other comprehensive income and is presented within equity.

Cash flow hedge reserve

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Consolidated Statement of Profit and Loss upon the occurrence of the related forecasted transaction.

EQUITY SHARE CAPITAL

	(In ₹ crore, except as otherwise stated)
Particulars	As at
	June 30, 2021 March 31, 2021
Authorized
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000) equity shares	2,4002,400

Issued, Subscribed and Paid-Up
Equity shares, ₹5 par value(1)	2,1222,124
4,24,17,36,856 (424,51,46,114) equity shares fully paid-up(2)
	2,1222,124

Note: Forfeited shares amounted to ₹1,500 (₹1,500)

(1) Refer to Note 2.20 for details of basic and diluted shares

(2) Net of treasury shares 1,51,44,907 (1,55,14,732)

The Company has only one class of shares referred to as equity shares having a par value of ₹5. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. For irrevocable controlled trusts, the corpus would be settled in favour of the beneficiaries.

For details of shares reserved for issue under the employee stock option plan of the Company refer to the note below.

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2021 and March 31, 2021 are as follows:

			(In ₹ crore, except as stated otherwise)
Particulars	As at June 30, 2021			As at March 31, 2021
	Shares	Amount	Shares	Amount
As at the beginning of the period	4,245,146,114	2,124	4,240,753,210	2,122
Add: Shares issued on exercise of employee stock options	980,742	—	4,392,904	2
Less: Shares bought back	4,390,000	2	—	—
As at the end of the period	4,241,736,856	2,122	4,245,146,114	2,124

Capital allocation policy and buyback

Effective fiscal 2020, the Company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any. Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the Consolidated Statement of Cash Flows prepared under IFRS. Dividend and buyback include applicable taxes.

Update on buyback announced in April 2021:

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021. At the Maximum buyback price of 1,750 per equity share and the Maximum buyback size of 9,200 crore the indicative maximum number of equity shares bought back would be 5,25,71,428 Equity Shares (Maximum buyback shares) comprising approximately 1.23% of the paid-up equity share capital of the Company as of March 31, 2021 and as on June 22, 2021 the date of the Public Announcement for the buyback (on a standalone basis).

In accordance with section 69 of the Companies Act, 2013, during the quarter ended June 30, 2021, the Company has created 'Capital Redemption Reserve' of `2 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As at June 30, 2021, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

Dividend

Amount of per share dividend recognized as distribution to equity shareholders:

		(in ₹)
Particulars	Three months ended June 30,
	2021	2020
Final dividend for fiscal 2020	—	9.50
Final dividend for fiscal 2021	15.00	—

Employee Stock Option Plan (ESOP):

Accounting policy

The Group recognizes compensation expense relating to share-based payments in net profit based on estimated fair values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in the statement of profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding account.

Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan) :

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 Plan shall not exceed 50,000,000 equity shares. To implement the 2019 Plan, up to 45,000,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 Plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the Company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

2015 Stock Incentive Compensation Plan (the 2015 Plan) :

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan (the 2015 Plan). The maximum number of shares under the 2015 Plan shall not exceed 24,038,883 equity shares (this includes 11,223,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). The Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years. The plan numbers mentioned above would further be adjusted for the September 2018 bonus issue.

Controlled trust holds 1,51,44,907 and 15,514,732 shares as at June 30, 2021 and March 31, 2021, respectively, under the 2015 Plan. Out of these shares, 200,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2021 and March 31, 2021.

The following is the summary of grants during the three months ended June 30, 2021 and June 30, 2020:

Particulars	2019 Plan		2015 Plan
	Three months ended June 30,		Three months ended June 30,
	2021	2020	2021	2020
Equity Settled RSU
KMPs	73,962	207,808	101,697	204,097
Employees other than KMP	—	—	—	24,600
Total Grants	73,962	207,808	101,697	228,697

Notes on grants to KMP:

CEO & MD

Under the 2015 Plan:

In accordance with the employee agreement which has been approved by the shareholders, the CEO is eligible to receive an annual grant of RSUs of fair value ₹3.25 crore which will vest overtime in three equal annual installments upon the completion of each year of service from the respective grant date. Though the annual time based grants for the remaining employment term ending on March 31, 2023 have not been granted as of June 30, 2021, since the service commencement date precedes the grant date, the Company has recorded employment stock compensation expense in accordance with Ind AS 102, Share based payments.

Under the 2019 Plan:

Other KMPs

Under the 2015 Plan:

Break-up of employee stock compensation expense:

		(in ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Granted to:
KMP	17	17
Employees other than KMP	93	59
Total (1)	110	76
(1) Cash-settled stock compensation expense included above	7	13

The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options.

The fair value of each equity settled award is estimated on the date of grant using the following assumptions:

Particulars	For options granted in
	Fiscal 2022-	Fiscal 2022-	Fiscal 2021-	Fiscal 2021-
	Equity Shares	ADS-RSU	Equity Shares	ADS-RSU
	RSU		RSU
Weighted average share price (₹) / ($ ADS)	1,352	18.20	1,253	18.46
Exercise price (₹) / ($ ADS)	5.00	0.07	5.00	0.07
Expected volatility (%)	29-35	30-37	30-35	30-36
Expected life of the option (years)	1-4	1-4	1-4	1-4
Expected dividends (%)	2-3	2-3	2-3	2-3
Risk-free interest rate (%)	4-5	0.1-0.6	4-5	0.1-0.3
Weighted average fair value as on grant date (₹) / ($ ADS)	1,189	16.80	1,124	16.19

The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP.

2.12 OTHER FINANCIAL LIABILITIES

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non-current
Others
Accrued compensation to employees (1)	9	—
Accrued expenses (1)	637	569
Compensated absences	95	97
Financial liability under option arrangements (2)	713	693
Payable for acquisition of business - Contingent consideration (2)	68	86
Other Payables (1)	106	69
Total non-current other financial liabilities	1,628	1,514

Current
Unpaid dividends (1)	32	33
Others
Accrued compensation to employees (1)	4,124	4,019
Accrued expenses (1)	5,448	4,475
Retention monies (1)	13	13
Payable for acquisition of business - Contingent consideration (2)	25	75
Payable by controlled trusts (1)	211	199
Fnancial liability relating to buyback (Refer to Note 2.11) (1) (4)	2,485	—
Compensated absences	2,257	2,020
Foreign currency forward and options contracts (2) (3)	50	56
Capital creditors (1)	325	371
Other payables (1)	170	129
Total current other financial liabilities	15,140	11,390

Total other financial liabilities	16,768	12,904
(1) Financial liability carried at amortized cost	13,560	9,877
(2) Financial liability carried at fair value through profit or loss	853	910

(3) Financial liability carried at fair value through other comprehensive income	3	—
Contingent consideration on undiscounted basis	110	181

(4) In accordance with Ind AS 32, Financial Instruments: Presentation, the Company has recorded a financial liability as at June 30, 2021 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (Refer to Note 2.11) . The financial liability is recognised at the present value of the maximum amount that the Company would be required to pay to the registered broker for buyback, with a corresponding debit in general reserve / retained earnings.

2.13 OTHER LIABILITIES

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Non-current
Others
Withholding taxes and others	370	364
Deferred income - government grants	58	57
Accrued defined benefit plan liability	331	324
Deferred income	15	17
Others	2	1
Total non-current other liabilities	776	763

Current
Unearned revenue	4,278	4,050
Others
Withholding taxes and others	2,381	2,170
Accrued defined benefit plan liability	3	6
Deferred income - government grants	3	3
Tax on buyback (Refer to Note 2.11)	699	—
Others	4	4
Total current other liabilities	7,368	6,233
Total other liabilities	8,144	6,996

2.14 PROVISIONS

Accounting policy

A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

a. Post sales client support

The Group provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in Consolidated Statement of Profit and Loss. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

b. Onerous contracts

Provision for post-sales client support and other provisions:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Current
Others
Post-sales client support and other provisions	726	713
Total provisions	726	713

2.15 INCOME TAXES

Accounting policy

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Consolidated Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Income tax expense in the Consolidated Statement of Profit and Loss comprises:

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Current taxes	1,937	1,321
Deferred taxes	38	199
Income tax expense	1,975	1,520

Income tax expense for the three months ended June 30, 2021 and June 30, 2020 includes reversal (net of provisions) of ₹13 crore and ₹131 crore, respectively. These reversals pertain to prior periods primarily on account of adjudication of certain disputed matters in favor of the Company and upon filing of tax return across various jurisdictions.

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Profit before income taxes	7,176	5,792
Enacted tax rates in India	34.94%	34.94%
Computed expected tax expense	2,507	2,024
Tax effect due to non-taxable income for Indian tax purposes	(666)	(547)
Overseas taxes	199	164
Tax provision (reversals)	(13)	(131)
Effect of exempt non-operating income	(19)	(9)
Effect of unrecognized deferred tax assets	—	17
Effect of differential tax rates	(31)	(28)
Effect of non-deductible expenses	37	38
Others	(39)	(8)
Income tax expense	1,975	1,520

The applicable Indian corporate statutory tax rate for the three months ended June 30, 2021 and June 30, 2020 is 34.94% each.

Deferred income tax for the three months ended June 30, 2021 and June 30, 2020 substantially relates to origination and reversal of temporary differences.

2.16 REVENUE FROM OPERATIONS

Accounting policy

Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Group's costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract.

The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them.

Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to expenses over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs.

The Group presents revenues net of indirect taxes in its Consolidated Statement of Profit and Loss.

Revenue from operation for the three months ended June 30, 2021 and June 30, 2020 are as follows:

		(In ₹ crore)
Particulars	Three months ended June 30,
	2021	2020
Revenue from software services	25,847	22,019
Revenue from products and platforms	2,049	1,646
Total revenue from operations	27,896	23,665

The Group has evaluated the impact of COVID – 19 pandemic on (i) the possibility of constraints in our ability to render services which may require revision of estimations of costs to complete the contract because of additional efforts; (ii) onerous obligations; (iii) penalties relating to breaches of service level agreements; and (iv) termination or deferment of contracts by customers. The Group has concluded that the impact of COVID – 19 pandemic is not significant based on these estimates. Due to the nature of the COVID – 19 pandemic, the Group will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

Disaggregated revenue information

The table below presents disaggregated revenues from contracts with customers by geography and offerings for each of our business segments. The Group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.

For the three months ended June 30, 2021 and June 30, 2020:

									(In ₹ crore)
Particulars	FinancialServices (1)		Retail(2) Communication (3)	Energy ,Utilities,Resourcesand Services	Manufacturing	Hi-Tech	Life(4)Sciences	Others (5)	Total
Revenues by Geography*
North America	5,727	2,786	1,775	1,727	1,441	2,153	1,368	229	17,206
	4,374	2,176	1,815	1,713	1,298	1,946	1,048	171	14,541
Europe	1,651	1,150	823	1,336	1,183	52	487	55	6,737
	1,535	1,018	628	1,037	885	31	495	55	5,684
India	402	30	109	31	14	91	8	136	821
	369	9	57	3	15	72	8	152	685
Rest of the world	1,437	209	696	277	64	14	28	407	3,132
	1,179	188	665	274	58	14	24	353	2,755
Total	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665
Revenue by offerings
Digital	4,812	2,393	1,930	1,859	1,444	1,272	1,012	326	15,048
	3,426	1,613	1,496	1,320	1,028	868	566	216	10,533
Core	4,405	1,782	1,473	1,512	1,258	1,038	879	501	12,848
	4,031	1,778	1,669	1,707	1,228	1,195	1,009	515	13,132
Total	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665

(1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

* Geographical revenues is based on the domicile of customer

Digital Services

Core Services

Products & platforms

Trade Receivables and Contract Balances

Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones.

Invoicing in excess of earnings are classified as unearned revenue.

Trade receivables and unbilled revenues are presented net of impairment in the consolidated Balance Sheet.

2.17 OTHER INCOME, NET

Accounting policy

Foreign currency

Accounting policy

Functional currency

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the Consolidated Statement of Profit and Loss and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate.

The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the Consolidated Statement of Profit and Loss. However when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity.

Government grant

The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in net profit in the Consolidated Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in net profit in the interim condensed consolidated Statement of Profit and Loss over the periods necessary to match them with the related costs which they are intended to compensate.

Other income for the three months June 30, 2021 and June 30, 2020 is as follows:

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Interest income on financial assets carried at amortized cost:
Tax free bonds and Government bonds	38	34
Deposit with Bank and others	290	257
Interest income on financial assets carried at fair value through other
comprehensive income:
Non-convertible debentures ,certificates of deposit, and	158	89
government securities
Income on investments carried at fair value through
profit or loss:
Dividend income on liquid mutual funds	—	1
Gain / (loss) on liquid mutual funds and other investments	24	24
Income on investments carried at fair value through other comprehensive income	—	27
Interest income on income tax refund	13	—
Exchange gains / (losses) on foreign currency forward and options contracts	(77)	46
Exchange gains / (losses) on translation of foreign currency assets and liabilities	128	(32)
Miscellaneous income, net	48	29
Total other income	622	475

2.18 EXPENSES

Accounting policy

Gratuity and Pensions

The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and/or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits.

The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Consolidated Statement of Profit and Loss.

Provident fund

In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Companies have no further obligation to the plan beyond its monthly contributions.

Superannuation

Compensated absences

The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Employee benefit expenses
Salaries including bonus	14,648	13,189
Contribution to provident and other funds	349	289
Share based payments to employees (Refer to Note 2.11)	110	76
Staff welfare	123	50
	15,230	13,604

Cost of software packages and others
For own use	343	292
Third party items bought for service delivery to clients	946	601
	1,289	893

Other expenses
Repairs and maintenance	273	345
Power and fuel	33	35
Brand and marketing	114	59
Short-term leases	17	24
Rates and taxes	63	55
Consumables	32	24
Insurance	42	30
Provision for post-sales client support and others	1	6
Commission to non-whole time directors	2	1
Impairment loss recognized / (reversed) under expected credit loss model	44	99
Contributions towards Corporate Social responsibility	145	120
Others	49	82
	815	880

2.19 Leases

Accounting Policy

The Group as a lessee

The Group's lease asset classes primarily consist of leases for land, buildings and computers. The group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the group assesses whether: (1) the contract involves the use of an identified asset (2) the group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the group has the right to direct the use of the asset.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Group as a lessor

Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2021:

					(In ₹ crore)
Particulars	Category of ROU asset
	Land	Buildings	Vehicles	Computers	Total
Balance as of April 1, 2021	630	3,984	19	161	4,794
Additions*	-	(141)	1	46	(94)
Deletions	-	(4)	-	-	(4)
Depreciation	(2)	(155)	(2)	(13)	(172)
Translation difference	3	32	1	-	36
Balance as of June 30, 2021	631	3,716	19	194	4,560

* Net of adjustments on account of modification of lease term

Following are the changes in the carrying value of right of use assets for the three months ended June 30, 2020:

					(In ₹ crore)
Particulars
	Land	Buildings	Vehicles	Computers	Total
Balance as of April 1, 2020	626	3,485	15	42	4,168
Additions	-	(17)	8	30	21
Deletion	-	(58)	-	-	(58)
Depreciation	(1)	(145)	(3)	(5)	(154)
Translation difference	-	20	-	-	20
Balance as of June 30, 2020	625	3,285	20	67	3,997

The aggregate depreciation on ROU assets has been included under depreciation and amortisation expense in the Consolidated Statement of Profit and Loss.

The following is the break-up of current and non-current lease liabilities:

		(In ₹ crore)
Particulars	As at
	June 30, 2021	March 31, 2021
Current lease liabilities	740	738
Non-current lease liabilities	4,391	4,587
Total	5,131	5,325

2.20 BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER EQUITY SHARE

Accounting policy

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

2.21 CONTINGENT LIABILITIES AND COMMITMENTS

Accounting policy

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

		(In ₹ crore)
	As at
Particulars	June 30, 2021
Contingent liabilities :
Claims against the Group, not acknowledged as debts(1)	4,077	4,061
[Amount paid to statutory authorities ₹6,075 crore (₹6,105 crore) ]
Commitments :
Estimated amount of contracts remaining to be executed on capital contracts
and not provided for (net of advances and deposits)(2)	666	733
Other commitments*	40	42

* Uncalled capital pertaining to investments

(1) As at June 30, 2021, claims against the Group not acknowledged as debts in respect of income tax matters amounted to ₹3,471 crore.

The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of multiple issues of disallowances such as disallowance of profits earned from STP Units and SEZ Units, disallowance of deductions in respect of employment of new employees under section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Appellate Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations.

Amount paid to statutory authorities against the tax claims amounted to ₹6,065 crore.

(2) Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments.

Legal Proceedings

The Group is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Group's Management reasonably expects based on currently available information, that these legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Group's results of operations or financial condition.

2.22 RELATED PARTY TRANSACTIONS

Refer to the Company's Annual Report for the year ended March 31, 2021 for the full names and other details of the Company's subsidiaries and controlled trusts.

Changes in Subsidiaries

During the three months ended June 30, 2021, the following are the changes in the subsidiaries:

Simplus North America Inc., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective April 27, 2021.
Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus ANZ Pty Ltd, is under liquidation.
Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., is under liquidation.

Transaction with key management personnel:

The table below describes the compensation to key management personnel which comprise directors and executive officers:

		(In ₹ crore)
Particulars		Three months ended June 30,
	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers (1)(2)	37	33
Commission and other benefits to non-executive/independent directors	2	1
Total	39	34

(2)Does not include post-employment benefit based on actuarial valuation as this is done for the Company as a whole.

2.23 SEGMENT REPORTING

Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public services and revenue generated from customers located in India, Japan and China and other enterprises in Public services. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and onsite expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group.

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

Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations.

Business Segments

Three months ended June 30, 2021 and June 30, 2020:

									(In ₹ crore)
	Financial		Retail (2) Communic	Energy,	Manufactu	Hi-Tech	Life	All other	Total
	Services (1)		ation (3)	Utilities,	ring		Sciences (4)	segments (5)
Particulars				Resources
				and
				Services
Revenue from operations	9,217	4,175	3,403	3,371	2,702	2,310	1,891	827	27,896
	7,457	3,391	3,165	3,027	2,256	2,063	1,575	731	23,665
Identifiable operating expenses	5,313	1,996	2,080	1,754	1,538	1,381	1,017	482	15,561
	3,904	1,593	1,902	1,553	1,283	1,128	799	467	12,629
Allocated expenses	1,546	697	616	595	539	362	303	245	4,903
	1,552	750	642	623	467	337	300	244	4,915
Segment operating income	2,358	1,482	707	1,022	625	567	571	100	7,432
	2,001	1,048	621	851	506	598	476	20	6,121
Unallocable expenses									829
									756
Other income, net (Refer to Note 2.17)									622
									475
Finance cost									49
Profit before tax									487,176
									5,792
Income tax expense									1,975
									1,520
Net Profit									5,201
									4,272
Depreciation and amortization									829
									756
Non-cash expenses other than depreciation and amortization									——

(1) Financial Services include enterprises in Financial Services and Insurance

(2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

(3) Communication includes enterprises in Communication, Telecom OEM and Media

(4) Life Sciences includes enterprises in Life sciences and Health care

(5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

Significant clients

No client individually accounted for more than 10% of the revenues in the three months ended June 30, 2021 and June 30, 2020, respectively.

2.24 FUNCTION WISE CLASSIFICATION OF CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS

		(In ₹ crore)
	Note No.	Three months ended
ParticularsRevenue from operationsCost of SalesGross profitOperating expensesSelling and marketing expensesGeneral and administration expensesTotal operating expensesOperating profitOther income, netFinance costProfit before taxTax expense:Current taxDeferred taxProfit for the periodItems that will be reclassified subsequently to profit or lossFair value changes on derivatives designated as cash flow hedge, netExchange differences on translation of foreign operations, netFair value changes on investments, net		June 30,2021
	2.16	27,896	202023,665
		18,506	15,703
		9,390	7,962

		1,248	1,146
		1,539	1,451
		2,787	2,597

		6,603	5,365
	2.17	622	475
		497,176	485,792

	2.15	1,937	1,321
	2.15	38	199
		5,201	4,272

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset		(33)	147
Equity instruments through other comprehensive income, net		1	(1)
		(32)	146

		5	(6)
		290	164
		38	54
		333	212
Total other comprehensive income / (loss), net of tax		301	358

Total comprehensive income for the period		5,502	4,630

Profit attributable to:
Owners of the Company		5,195	4,233
Non-controlling interests		6	39
		5,201	4,272
Total comprehensive income attributable to:
Owners of the Company		5,491	4,586
Non-controlling interests		11	44
		5,502	4,630

for and on behalf of the Board of Directors of Infosys Limited

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Chairman Chief Executive Officer Chief Operating Officer and Managing Director and Whole-time Director

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Director Chief Financial Officer Executive Vice President and Deputy Chief Financial Officer

A.G.S. Manikantha Company Secretary

Bengaluru July 14, 2021

AI assistant

Infosys Ltd. — Interim / Quarterly Report 2022

17843_rns_2021-07-14_92e279b1-d230-459d-9d09-d6b6d35ca9bd.pdf

TO ALL STOCK EXCHANGES

BSE LIMITED NATIONAL STOCK EXCHANGE OF INDIA LIMITED NEW YORK STOCK EXCHANGE

Sub: Outcome of Board meeting

Financial Results

Other matters

Revenue Growth- Q1 21

Revenues by Offering

Revenues by Business Segments

Revenues by Client Geography

Client Data

Effort and Utilization - Consolidated IT Services

Employee Metrics

Cash Flow

Consolidated statement of Comprehensive Income for three months ended,

Consolidated statement of Comprehensive Income for three months ended,

INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Opinion

Basis for Opinion

Management's Responsibilities for the Consolidated Financial Results

Auditor's Responsibilities for Audit of the Consolidated Financial Results

For DELOITTE HASKINS & SELLS LLP

Annexure to Auditor's Report

List of Entities:

INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Opinion

Basis for Opinion

Management's Responsibilities for the Standalone Financial Results

Auditor's Responsibilities for the Audit of the Standalone Financial Results

For DELOITTE HASKINS & SELLS LLP

1. Key highlights for the quarter ended June 30, 2021

2. Capital Allocation

3. Client Wins & Testimonials

4. Recognitions

About Infosys

Safe Harbor

Contact

Infosys Limited and subsidiaries

NOTES:

1. Key highlights for the quarter ended June 30, 2021

2. Capital Allocation

3. Client Wins & Testimonials

4. Recognitions

About Infosys

Safe Harbor

Contact

Infosys Limited and subsidiaries

NOTES:

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED

Report on the Audit of the Interim Condensed Consolidated Financial Statements

Opinion

Basis for Opinion

Management's Responsibilities for the Interim Condensed Consolidated Financial Statements

Auditor's Responsibilities for the Audit of the Interim Condensed Consolidated Financial Statements

For DELOITTE HASKINS & SELLS LLP

(Dollars in millions except equity share data)

Condensed Consolidated Statements of Cash Flows

Accounting Policy

Notes to the consolidated financial statements

1.1 Company overview

1.2 Basis of preparation of financial statements

1.3 Basis of consolidation

1.4 Use of estimates and judgments

Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):

1.5 Critical accounting estimates and judgements

a. Revenue recognition

b. Income taxes

c. Business combinations and intangible assets

d. Property, plant and equipment

e. Impairment of Goodwill

f. Leases

g. Allowance for credit losses on receivables and unbilled revenue

1.6 Recent accounting pronouncements

New and revised IFRS Standards in issue but not yet effective:

Amendments to IAS 16

Infosys Ltd. Interim / Quarterly Report 2022