Infosys Ltd. — Regulatory Filings 2021

Oct 13, 2021

TO ALL STOCK EXCHANGES

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

October 13, 2021

Dear Sir, Madam,

Sub: Outcome of Board meeting

This has reference to our letter dated September 13, 2021, regarding the captioned subject. The Board, at their meeting held on October 12-13, 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 and half year ended September 30, 2021.
• 1. Took on record the audited standalone financial results of the Company as per INDAS for the quarter and half year ended September 30, 2021.
• 1. Took on record the audited financial statements of the Company and its subsidiaries as per INDAS and IFRS for the quarter and half year ended September 30, 2021.

Interim Dividend

• 1. Declared an interim dividend of ₹15/- per equity share.
• 1. Fixed October 27, 2021 as record date for interim dividend and November 10, 2021 as payment date.

Other matters

• 1. Authorized the merger of WongDoody Holding Company, Inc. ("WHC") and WDW Communications, Inc. (WDW) with WongDoody, Inc. (WDI). WHC is a wholly owned subsidiary of Infosys Limited and WDW and WDI are wholly owned subsidiaries of WHC. Post-merger, Infosys Limited will be issued shares in WDI in lieu of shares in WHC. The merger would be accounted for at carrying value and will not have any impact on the financial statements.
• 1. On recommendation of the Nomination and Remuneration Committee, approved the grant of 25,270 RSUs to certain eligible employees under the 2015 Plan. The grant date for these RSUs is November 1, 2021. The RSUs would vest over a period of two to three years and the exercise price of RSUs will be equal to the par value of the share.

1. Allotted 46,719 equity shares under the 2015 Stock Incentive Compensation Plan to the eligible employees of the Company, pursuant to the exercise of ADR Restricted Stock Units/Options. Consequently, on October 13, 2021, the Issued and Subscribed Share Capital of the Company stands increased to ₹ 21,027,555,725/- divided into 4,205,511,145 Equity Shares of ₹5/- each.

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: 2021.10.13 15:57:39 +05'30'

A.G.S. Manikantha Company Secretary

Revenue Growth- Q2 22

	Reported	CC
QoQ growth (%)	5.7%	6.3%
YoY growth (%)	20.7%	19.4%

Revenues by Offering

		Quarter ended (\$ mn)		YoY Growth (%)
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020	Reported	CC
Digital	2,243	2,040	1,568	43.1	42.4
Core	1,755	1,742	1,744	0.7	(1.0)
Total	3,998	3,782	3,312	20.7	19.4
Digital Revenues as % of Total Revenues	56.1	53.9	47.3

Revenues by Business Segments

(in %)
	Quarter ended YoY Growth
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020	Reported	CC
Financial services	32.3	33.0	32.0	21.8	20.5
Retail	14.6	15.0	14.9	18.8	17.2
Communication	12.4	12.2	12.6	18.9	16.6
Energy, Utilities, Resources & Services	11.8	12.1	12.3	15.9	14.6
Manufacturing	10.9	9.7	9.1	44.0	42.5
Hi-Tech	8.5	8.3	9.1	12.1	12.2
Life Sciences	7.1	6.8	6.8	26.1	26.1
Others	2.4	2.9	3.2	(8.5)	(9.6)
Total	100.0	100.0	100.0	20.7	19.4

Revenues by Client Geography

(in %)
		Quarter ended	YoY Growth
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020	Reported	CC
North America	61.9	61.7	60.7	23.1	23.1
Europe	24.8	24.2	24.3	22.8	19.6
Rest of the world	10.7	11.2	12.0	8.3	4.7
India	2.6	2.9	3.0	4.3	4.2
Total	100.0	100.0	100.0	20.7	19.4

Client Data

		Quarter ended
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020
Number of Clients
Active	1,714	1,659	1,487
Added during the period (gross)	117	113	96
Number of million dollar clients*
1 Million dollar +	841	805	745
10 Million dollar +	270	264	242
50 Million dollar +	62	59	60
100 Million dollar +	35	34	30
Client contribution to revenues
Top 5 clients	11.4%	11.3%	11.3%
Top 10 clients	19.4%	18.8%	18.7%
Top 25 clients	35.4%	34.4%	34.2%
Days Sales Outstanding*	66	70	69

*LTM (Lasttwelve months) Revenues

Effort and Utilization - Consolidated IT Services

			(in %)
	Quarter ended
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020
Effort
Onsite	23.6	24.1	26.1
Offshore	76.4	75.9	73.9
Utilization
Including trainees	84.1	83.3	80.6
Excluding trainees	89.2	88.5	83.6

Employee Metrics

			(Nos.)
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020
Total employees	2,79,617	2,67,953	2,40,208
S/W professionals	2,64,918	2,53,493	2,26,067
Sales & Support	14,699	14,460	14,141
Voluntary Attrition % (LTM - IT Services)	20.1%	13.9%	12.8%
% of Women Employees	39.1%	38.8%	37.9%
Revenue per Employee - Consolidated (In US \$ K)	57.3	56.6	53.5

Cash Flow

			In US \$ million
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020
Free cash flow (1)	712	863	674
Consolidated cash and investments (2)	4,418	5,076	4,555
			In ` crore

	Quarter ended
	Sep 30, 2021	Jun 30, 2021	Sep 30, 2020
Free cash flow (1)	5,272	6,363	4,989
Consolidated cash and investments (2)	32,801	37,727	33,601

(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, current and non-current investments excluding investments in unquoted equity and preference shares, unquoted compulsorily convertible debentures and others (Non-IFRS measure)

Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)			In US \$ million, except per equity share data
Particulars	Sep 30, 2021	Sep 30, 2020	Growth % Q2 22 over Q2 21	Jun 30, 2021	Growth % Q2 22 over Q1 22
Revenues	3,998	3,312	20.7	3,782	5.7
Cost of sales	2,675	2,125	25.9	2,509	6.6
Gross Profit	1,323	1,187	11.5	1,273	3.9
Operating Expenses:
Selling and marketing expenses	167	153	9.2	169	(1.2)
Administrative expenses	215	194	10.8	208	3.4
Total Operating Expenses	382	347	10.1	377	1.3
Operating Profit	941	840	12.1	896	5.2
Operating Margin %	23.6	25.4	(1.8)	23.7	(0.1)
Other Income, net(1)	65	70	(7.1)	77	(15.6)
Profit before income taxes	1,006	910	10.5	973	3.4
Income tax expense	272	255	6.7	268	1.5
Net Profit (before minority interest)	734	655	11.9	705	4.0
Net Profit (after minority interest)	733	653	12.1	704	3.9
Basic EPS (\$)	0.17	0.15	13.0	0.17	4.8
Diluted EPS (\$)	0.17	0.15	12.9	0.17	4.8
Dividend Per Share (\$)(2)	0.20	0.16	25.0	-	0.0

Consolidated statement of Comprehensive Income for six months ended,

(Extracted from IFRS Financial Statement)		In US \$ million, except per equity share data
Particulars	Sep 30, 2021	Sep 30, 2020	Growth %
Revenues	7,780	6,433	21.0
Cost of sales	5,184	4,196	23.5
Gross Profit	2,596	2,237	16.0
Operating Expenses:
Selling and marketing expenses	336	305	10.2
Administrative expenses	423	385	9.9
Total Operating Expenses	759	690	10.0
Operating Profit	1,837	1,547	18.7
Operating Margin %	23.6	24.1	(0.4)
Other Income, net(1)	142	128	10.9
Profit before income taxes	1,979	1,675	18.1
Income tax expense	540	456	18.4
Net Profit (before minority interest)	1,439	1,219	18.1
Net Profit (after minority interest)	1,437	1,212	18.6
Basic EPS (\$)	0.34	0.29	19.0
Diluted EPS (\$)	0.34	0.29	19.0
Dividend Per Share (\$)(2)	0.20	0.16	25.0

(1) Other income is net of Finance Cost

(2) USD/INR exchange rate as of September 30, 2021

Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)	In ` crore, except per equity share data
Particulars	Sep 30, 2021	Sep 30, 2020	Growth % Q2 22 over Q2 21	Jun 30, 2021	Growth % Q2 22 over Q1 22
Revenues	29,602	24,570	20.5	27,896	6.1
Cost of sales	19,806	15,771	25.6	18,506	7.0
Gross Profit	9,796	8,799	11.3	9,390	4.3
Operating Expenses:
Selling and marketing expenses	1,235	1,136	8.7	1,248	(1.0)
Administrative expenses	1,589	1,435	10.7	1,539	3.2
Total Operating Expenses	2,824	2,571	9.8	2,787	1.3
Operating Profit	6,972	6,228	12.0	6,603	5.6
Operating Margin %	23.6	25.3	(1.8)	23.7	(0.1)
Other Income, net(1)	476	522	(8.8)	573	(16.9)
Profit before income taxes	7,448	6,750	10.3	7,176	3.8
Income tax expense	2,020	1,892	6.8	1,975	2.3
Net Profit (before minority interest)	5,428	4,858	11.7	5,201	4.4
Net Profit (after minority interest)	5,421	4,845	11.9	5,195	4.4
Basic EPS (`)	12.88	11.42	12.7	12.24	5.2
Diluted EPS (`)	12.85	11.40	12.7	12.21	5.2
Dividend Per Share (`)	15.00	12.00	25.0	-	-

Consolidated statement of Comprehensive Income for six months ended,

(Extracted from IFRS Financial Statement)			In ` crore, except per equity share data
Particulars	Sep 30, 2021	Sep 30, 2020	Growth %
Revenues	57,498	48,234	19.2
Cost of sales	38,312	31,473	21.7
Gross Profit	19,186	16,761	14.5
Operating Expenses:
Selling and marketing expenses	2,483	2,283	8.8
Administrative expenses	3,128	2,885	8.4
Total Operating Expenses	5,611	5,168	8.6
Operating Profit	13,575	11,593	17.1
Operating Margin %	23.6	24.0	(0.4)
Other Income, net(1)	1,048	950	10.3
Profit before income taxes	14,623	12,543	16.6
Income tax expense	3,994	3,412	17.1
Net Profit (before minority interest)	10,629	9,131	16.4
Net Profit (after minority interest)	10,616	9,078	16.9
Basic EPS (`)	25.11	21.40	17.3
Diluted EPS (`)	25.06	21.37	17.3
Dividend Per Share (`)	15.00	12.00	25.0

(1) Other income is net of Finance Cost

Chartered Accountants One International Centre, 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 and half year ended September 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 and half year ended September 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 and half year ended September 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: October 13, 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 S.a.r.l
• 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. (liquidated effective September 01, 2021)
• 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 Co., Ltd.
• 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 B.V. effective December 18, 2020)
• 1. Stater Deutschland GmbH & Co. KG (merged with Stater Duitsland B.V. 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 (liquidated effective September 02, 2021)
• 1. Simplus Philippines, Inc.
• 1. Simplus Europe, Ltd. (liquidated effective July 20, 2021)
• 1. Infosys Fluido UK, 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 renamed as Blue Acorn iCi 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. Stater GmbH (incorporated on August 4, 2021)
• 1. Infosys Green Forum (incorporated on August 31, 2021)
• 1. Infosys Employees Welfare Trust
• 100.Infosys Employee Benefits Trust
• 101.Infosys Science Foundation
• 102.Infosys Expanded Stock Ownership Trust

Chartered Accountants One International Centre, 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 and half year ended September 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 and half year ended September 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 and half year ended September 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.

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: October 13, 2021

	Infosys Limited
	CIN: L85110KA1981PLC013115 Regd. Office: Electronics City, Hosur Road, Bengaluru 560 100, India.
Website: www.infosys.com; Email: investors@infosys.com; Telephone: 91 80 2852 0261; Fax: 91 80 2852 0362
Statement of Consolidated Audited Results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2021
	prepared in compliance with the Indian Accounting Standards (Ind-AS)
					(in ₹ crore, except per equity share data)
	Quarter	Quarter	Quarter	Half-year		Year ended
	ended	ended	ended	ended		March 31,
Particulars	September 30,	June 30,	September 30,	September 30,
	2021 Audited	2021 Audited	2020 Audited	2021 Audited	2020 Audited	2021 Audited
Revenue from operations	29,602	27,896	24,570	57,498	48,234	100,472
Other income, net	524	622	570	1,146	1,046	2,201
Total Income	30,126	28,518	25,140	58,644	49,280	102,673
Expenses
Employee benefit expenses	15,743	15,230	13,400	30,973	27,004	55,541
Cost of technical sub-contractors	3,054	2,454	1,634	5,508	3,260	7,084
Travel expenses	163	133	151	296	267	554
Cost of software packages and others Communication expenses	1,393	1,289	1,108	2,682	2,001	4,223
Consultancy and professional charges	146 449	147 396	162 286	294 844	324 548	634 1,261
Depreciation and amortisation expenses	859	829	855	1,687	1,611	3,267
Finance cost	48	49	48	98	96	195
Other expenses	823	815	746	1,639	1,626	3,286
Total expenses	22,678	21,342	18,390	44,021	36,737	76,045
Profit before tax	7,448	7,176	6,750	14,623	12,543	26,628
Tax expense:
Current tax	1,987	1,937	1,763	3,923	3,084	6,672
Deferred tax	33	38	129	71	328	533
Profit for the period	5,428	5,201	4,858	10,629	9,131	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	14	(33)		(19)	154	134
Equity instruments through other comprehensive income, net	40		(5)	41	(6)	119
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedges, net			27	11	21	25
Exchange differences on translation of foreign operations	(166)	290	21	124	185	130
Fair value changes on investments, net	55	38	(45)	93		(102)
Total other comprehensive income/(loss), net of tax	(51)	301		250	363	306
Total comprehensive income for the period	5,377	5,502	4,863	10,879	9,494	19,729
Profit attributable to:
Owners of the company	5,421	5,195	4,845	10,616	9,078	19,351
Non-controlling interest			13	13	53	72
	5,428	5,201	4,858	10,629	9,131	19,423
Total comprehensive income attributable to:
Owners of the company	5,375	5,491	4,847	10,866	9,434	19,651
Non-controlling interest		11	16	13	60	78
	5,377	5,502	4,863	10,879	9,494	19,729
Paid up share capital (par value ₹5/- each, fully paid)	2,097	2,122	2,123	2,097	2,123	2,124
Other equity **	74,227	74,227	63,328	74,227	63,328	74,227
Earnings per equity share (par value ₹5/- each)**
Basic $(\overline{\tau})$	12.88	12.24	11.42	25.11	21.40	45.61

	Quarter	Quarter	Quarter	Half-year		$(1n \leqslant)$ Year ended
Particulars	ended	ended	ended	ended		March 31
	September 30,	June 30,	September 30,	September 30,
	2021	2021	2020	2021	2020	2021
Dividend per share (par value ₹5/- each) Interim dividend Final dividend	15.00		12.00	15.00	12.00	12.00 15.00
3. Audited Consolidated Balance Sheet						(in $\overline{\tau}$ crore)
Particulars					As at
					September 30, 2021	March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment					12,913	12,560
Right of use assets Capital work-in-progress					4,599 383	4,794 922
Goodwill					6,122	6,079
Other Intangible assets					1,895	2,072
Financial assets
Investments					10,096	11,863
Loans					45	32
Other financial assets					1,252	1,141
Deferred tax assets (net)					976	1,098
Income tax assets (net)					5,796	5,811
Other non-current assets Total non-current assets					2,025	1,281 47,653
					46,102
Current assets
Financial assets Investments
Trade receivables					4,983 20,121	2,342 19,294
Cash and cash equivalents					18,056	24,714
Loans					191	159
Other financial assets					7,385	6,410
Other current assets					9,272	7,814
Total current assets					60,008	60,733
Total Assets					106,110	108,386
EQUITY AND LIABILITIES
Equity
Equity share capital					2,097	2,124
Other equity					67,842	74,227
Total equity attributable to equity holders of the Company Non-controlling interests					69,939 409	76,351 431
Total equity					70,348	76,782
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities					4,356	4,587
Other financial liabilities					2,109	1,514
Deferred tax liabilities (net)					858	875
Other non-current liabilities					751	763
Total non-current liabilities					8,074	7,739
Current liabilities
Financial liabilities
Lease liabilities					788	738
Trade payables Other financial liabilities					3,176 13,605	2,645 11,390
Other Current Liabilities					6,802	6,233
Provisions					862	713
Income tax liabilities (net)					2,455	2,146
Total current liabilities					27,688	23,865
Total equity and liabilities					106,110	108,386

4. Audited Consolidated Statement of Cash Flows		(in $\overline{\tau}$ crore)
Particulars	Half-year ended September 30, 2021	2020
Cash flow from operating activities
Profit for the period	10,629	9,131
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense	3,994	3,412
Depreciation and amortization	1,687	1,611
Interest and dividend income	(885)	(804)
Finance cost	98	96
Impairment loss recognized / (reversed) under expected credit loss model	87	159
Exchange differences on translation of assets and liabilities, net	54	(7)
Stock compensation expense	209	174
Other adjustments	36	(60)
Changes in assets and liabilities
Trade receivables and unbilled revenue	(2,963)	(67)
Loans, other financial assets and other assets	(406)	415
Trade payables	349	(477)
Other financial liabilities, other liabilities and provisions	2,754 15,643	773 14,356
Cash generated from operations Income taxes paid	(3, 574)	(2,987)
Net cash generated by operating activities	12,069	11,369
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles	(1,030)	(1,306)
Deposits placed with corporation	(516)	(495)
Redemption of deposits placed with corporation	343	362
Interest and dividend received	1,017	708
Payment of contingent consideration pertaining to acquisition of business	(53)	(150)
Escrow and other deposits pertaining to Buyback	(420)
Redemption of escrow and other deposits pertaining to Buyback	420
Other receipts	35	25
Other payments	(22)
Payments to acquire Investments
Liquid mutual funds and fixed maturity plan securities	(25, 411)	(11,960)
Non convertible debentures	(154)	(829)
Certificates of deposit Government securities	(498) (653)	(4,664)
Others	(13)	(1)
Proceeds on sale of Investments
Non-convertible debentures	1,299	720
Government securities	1,336	1,529
Certificates of deposit	500	900
Liquid mutual funds and fixed maturity plan securities	22,928	11,850
Others		22
Net cash (used in) / from investing activities	(891)	(3, 289)
Cash flows from financing activities:
Payment of lease liabilities	(421)	(351)
Payment of dividends	(6, 369)	(4,031)
Payment of dividend to non-controlling interest of subsidiary	(2)	(20)
Shares issued on exercise of employee stock options	117
Other receipts Other payments	(15)
Buyback of equity shares including transaction cost and tax on buyback	(11, 125)
Net cash used in financing activities	(17, 806)	(4, 396)
Net increase / (decrease) in cash and cash equivalents	(6,628)	3,684
Cash and cash equivalents at the beginning of the period	24,714	18,649
Effect of exchange rate changes on cash and cash equivalents	(30)	-78
Cash and cash equivalents at the end of the period	18,056	22,411
Supplementary information:
Restricted cash balance	526	404

						(in $\bar{\epsilon}$ crore)
Particulars	Quarter ended September 30,	Quarter ended June 30.	Quarter ended September 30.	Half-year ended September 30,		Year ended March 31
	2021	2021	2020	2021	2020	2021
Revenue by business segment
Financial Services (1)	9,566	9,217	7.871	18,783	15,328	32,583
Retail (2)	4,330	4,175	3,651	8,505	7,043	14,745
Communication (3)	3,668	3,403	3,093	7,071	6,257	12,628
Energy, Utilities, Resources and Services	3,501	3,371	3,027	6,871	6,054	12,539
Manufacturing	3,219	2,702	2,241	5,922	4,497	9,447
Hi-Tech	2,511	2,310	2,244	4,821	4,307	8,560
Life Sciences (4)	2,103	1,891	1.672	3,994	3,246	6,870
All other segments (5)	704	827	771	1,531	1,502	3,100
Total	29,602	27,896	24,570	57,498	48,234	100,472
Less: Inter-segment revenue
Net revenue from operations	29,602	27,896	24,570	57,498	48,234	100,472
Segment profit before tax, depreciation and non-controlling interests:
Financial Services (1)	2,644	2,358	2,360	5,002	4,361	8,946
Retail (2)	1,503	1,482	1,300	2,985	2,349	5,117
Communication (3)	816	707	663	1,523	1,284	2,795
Energy, Utilities, Resources and Services	1,017	1,022	825	2,038	1,676	3,552
Manufacturing	724	625	655	1,350	1,160	2,563
Hi-Tech	619	567	669	1,186	1,268	2,454
Life Sciences (4)	588	571	565	1,159	1,039	2,156
All other segments (5)	(80)	100	46	19	67	306
Total	7,831	7,432	7,083	15,262	13,204	27,889
Less: Other Unallocable expenditure	859	829	855	1,687	1,611	3,267
Add: Unallocable other income	524	622	570	1,146	1,046	2,201
Less: Finance cost	48	49	48	98	96	195
Profit before tax and non-controlling interests	7,448	7,176	6,750	14,623	12,543	26,628

						(in $\bar{\bar{\epsilon}}$ crore)
Particulars	Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2021	2021	2020	2021	2020	2021
Revenue from operations	25,462	23,714	21.046	49,176	41,372	85,912
Profit before tax	7,303	6,493	6,163	13,796	11,542	24,477
Profit for the period	5,463	4,723	4,497	10,186	8,505	18,048
	$\cdots$	$\sim$ $\cdots$		$-$ $\sim$ $\sim$	$\cdots$

	(in US\$ million, except per equity share data)
	Quarter	Quarter	Quarter	Half-year		Year ended
Particulars	ended	ended	ended	ended		March 31
	September 30.	June 30.	September 30.	September 30.
	2021	2021	2020	2021	2020	2021
	Audited	Audited	Audited	Audited	Audited	Audited
Revenues	3,998	3,782	3,312	7,780	6,433	13,561
Cost of sales	2,675	2,509	2,125	5,184	4,196	8,828
Gross profit	1,323	1,273	1,187	2,596	2,237	4,733
Operating expenses	382	377	347	759	690	1,408
Operating profit	941	896	840	1,837	1,547	3,325
Other income, net	71	84	76	155	140	297
Finance cost						26
Profit before income taxes	1,006	973	910	1,979	1,675	3,596
Income tax expense	272	268	255	540	456	973
Net profit	734	705	655	1,439	1,219	2,623
Earnings per equity share *
Basic	0.17	0.17	0.15	0.34	0.29	0.62
Diluted	0.17	0.17	0.15	0.34	0.29	0.61
Total assets	14,295	14,730	13,363	14,295	13,363	14,825
Cash and cash equivalents and current investments	3,103	3,499	3,526	3,103	3,526	3,700

	(ii) < crore, except per equity silare data)
Particulars	Quarter	Quarter	Quarter	Half-year		Year ended
	ended	ended	ended	ended		March 31,
	September 30,	June 30.	September 30.	September 30,
	2021	2021	2020	2021	2020	2021
	Audited	Audited	Audited	Audited	Audited	Audited
Revenue from operations	25,462	23,714	21,046	49,176	41,372	85,912
Other income, net	1,052	570	582	1,622	1,060	2,467
Total income	26,514	24,284	21,628	50,798	42,432	88,379
Expenses
Employee benefit expenses	12,734	12,191	11,053	24,925	22,275	45,179
Cost of technical sub-contractors	3,934	3,316	2,125	7,251	4,220	9,528
Travel expenses	143	115	136	258	228	484
Cost of software packages and others	736	528	548	1,264	1,029	2,058
Communication expenses	107	104	121	210	235	464
Consultancy and professional charges	365	311	225	675	418	999
Depreciation and amortisation expense	601	576	608	1,178	1,154	2,321
Finance cost	32	32	31	64	62	126
Other expenses	559	618	618	1.177	1,269	2.743
Total expenses	19,211	17,791	15,465	37,002	30,890	63,902
Profit before tax	7,303	6,493	6,163	13,796	11,542	24,477
Tax expense:
Current tax	1,805	1,697	1,526	3,502	2,752	6,013
Deferred tax	35	73	140	108	285	416
Profit for the period	5,463	4,723	4,497	10,186	8,505	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	10	(32)	6	(22)	162	148
Equity instruments through other comprehensive income, net	39		(5)	41	(5)	120
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedges, net	6		27	11	21	25
Fair value changes on investments, net	52	38	(45)	90		(102)
Total other comprehensive income/ (loss), net of tax	107	13	(17)	120	182	191
Total comprehensive income for the period	5,570	4,736	4,480	10,306	8,687	18,239
Paid-up share capital (par value ₹5/- each fully paid)	2,102	2,128	2,129	2,102	2,129	2,130
Other Equity*	69,401	69,401	60,105	69,401	60,105	69,401
Earnings per equity share (par value ₹5 /- each)**
Basic $(\overline{\tau})$	12.93	11.08	10.56	24.01	19.97	42.37
Diluted (₹)	12.92	11.07	10.55	23.98	19.96	42.33

Particulars		Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2021	2021	2020	2021	2020	2021
Dividend per share (par value $\overline{5}/$ - each)
Interim dividend		15.00		12.00	15.00	12.00	12.00
Final dividend							15.00

Particulars	As at
	September 30, 2021	March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment	11,238	10,930
Right of use assets	3,306	3,435
Capital work-in-progress	347	906
Goodwill	167	167
Other Intangible assets	49	67
Financial assets
Investments	19,423	22,118
Loans	44	30
Other financial assets	581	613
	823	955
Deferred tax assets (net)
Income tax assets (net)	5,325	5,287
Other non-current assets	1,305	1,149
Total non-current assets	42,608	45,657
Current assets
Financial assets
Investments	3,873	2,037
Trade receivables	17,361	16,394
Cash and cash equivalents	12,396	17,612
Loans	163	229
Other financial assets	5,533	5,226
Other current assets	7,453	6,784
Total current assets	46,779	48,282
Total assets	89,387	93,939
EQUITY AND LIABILITIES
Equity
Equity share capital	2,102	2,130
Other equity	62,431	69,401
Total equity	64,533	71,531
LIABILITIES
Non-current liabilities
Financial liabilities	3,198	3,367
Lease liabilities
Other financial liabilities	363	259
Deferred tax liabilities (net)	516	511
Other non-current liabilities	634	649
Total non - current liabilities	4,711	4,786
Current liabilities
Financial liabilities
Lease liabilities	520	487
Trade payables
Total outstanding dues of micro enterprises and small enterprises
Total outstanding dues of creditors other than micro enterprises and small enterprises	1,907	1,562
Other financial liabilities	9,581	8,359
Other current liabilities	5,147	4,816
Provisions	818	661
	2,170	1,737
Income tax liabilities (net)	20,143	17,622
Total current liabilities
	00 207	02 020

		$(1n \leq 1)$
Particulars	Half-year ended September 30, 2021	2020
Cash flow from operating activities:
Profit for the period	10,186	8,505
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	1,178	1,154
Income tax expense	3,610	3,037
Impairment loss recognized / (reversed) under expected credit loss model	66	123
Finance cost	64	62
Interest and dividend income	(1, 347)	(734)
Stock compensation expense	185	154
Other adjustments	33	$\overline{2}$
Exchange differences on translation of assets and liabilities	46	(20)
Changes in assets and liabilities
Trade receivables and unbilled revenue	(2, 337)	(268)
Loans, other financial assets and other assets	190	457
Trade payables	323	(209)
Other financial liabilities, other liabilities and provisions	1,745	184
Cash generated from operations	13,942	12,447
Income taxes paid	(3,092)	(2,692)
Net cash generated by operating activities	10,850	9,755
Cash flow from investing activities:
Expenditure on property, plant and equipment	(793)	(1, 105)
Deposits placed with corporation	(409)	(425)
Redemption of deposits placed with corporation	275	295
Loan given to subsidiaries		(76)
Loan repaid by subsidiaries	73	267
Proceeds from redemption of debentures	536	327
Investment in subsidiaries	(126)	(215)
Payment towards business transfer		(66)
Payment of contingent consideration pertaining to acquisition		(122)
Escrow and other deposits pertaining to Buyback	(420)
Redemption of Escrow and other deposits pertaining to Buyback	420
Other receipts	25	25
Payments to acquire investments
Preference, equity securities and others	(3)	(1)
Liquid mutual fund units and fixed maturity plan securities	(22, 370)	(10, 499)
Certificates of deposit	(498)
Government Securities	(83)	(4,664)
Non Convertible debentures		(746)
Proceeds on sale of investments
Liquid mutual fund units and fixed maturity plan securities	20,446	10,541
Non-convertible debentures	1,299	535
Certificates of deposit	500	900
Government Securities	1,336	1,529
Interest and dividend received	906	673
Dividend received from subsidiary	592
Net cash (used in) / from investing activities	1,706	(2,827)
Cash flow from financing activities:
Payment of lease liabilities	(286)	(210)
Buyback of equity shares including transaction cost and tax on buyback	(11, 125)
Other receipts	62
Shares issued on exercise of employee stock options	6	5
Payment of dividends	(6, 392)	(4,048)
Net cash used in financing activities	(17, 735)	(4, 253)
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(37)	10
	(5, 179)	2,675
Net increase / (decrease) in cash and cash equivalents	17,612	13,562
Cash and cash equivalents at the beginning of the period	12,396	16,247
Cash and cash equivalents at the end of the period
Supplementary information:	153
Restricted cash balance		99

IFRS – USD Press Release IFRS – USD Press Release

Growth accelerates in Q2 with resilient operating margins. Double digit growth across segments Revenue guidance for FY22 revised upwards to 16.5%-17.5%. Margin guidance retained at 22%-24%

Bengaluru, India – October 13, 2021: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered a strong Q2 performance with YoY growth increasing to 19.4% and sequential growth accelerating to 6.3% in constant currency. Growth was broad-based across geographies and segments with the largest geography, North America growing at 23.1% and the largest segment, Financial Services growing at 20.5%, YoY in constant currency. Large deal momentum continued with TCV of \$2.15 billion in Q2. Operating margin for the quarter was resilient at 23.6%. The Board has announced interim dividend of `15 per share for FY22.

"Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys CobaltTM, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.", said Salil Parekh, CEO and MD. "Given this continued momentum we have further increased our revenue growth guidance to 16.5%-17.5%", he added.

42.4% YoY CC Digital growth

19.4% YoY 6.3% QoQ CC Revenue growth

23.6% Operating margin 12.7% YoY Increase in EPS (₹ terms)

\$2.15 bn Large deal signings

1. Key highlights:

For the quarter ended September 30, 2021

• Revenues in CC terms grew by 19.4% YoY and 6.3% QoQ
• Reported revenues at \$3,998 million, growth of 20.7% YoY
• Digital revenues at 56.1% of total revenues, YoY CC growth of 42.4%
• Operating margin at 23.6%, decline of 1.8% YoY and 0.1% QoQ
• Basic EPS at \$0.17, growth of 13.0% YoY
• FCF at \$712 million, YoY growth of 5.6%; FCF conversion at 97.1% of net profit

For six months ended September 30, 2021

• Revenues in CC terms grew by 18.1% YoY
• Reported revenues at \$7,780 million, growth of 21.0% YoY
• Digital revenues at 55.0% of total revenues, YoY CC growth of 42.2%
• Operating margin at 23.6%, decline of 0.4% YoY
• Basic EPS at \$0.34, growth of 19.0% YoY
• FCF at \$1,575 million, YoY growth of 12.3%; FCF conversion at 109.5% of net profit

"In order to harness the full potential of the market opportunity, we are expanding our college graduates hiring program to ~45,000 for the year. Simultaneously, we continue to strengthen employee value proposition including health and wellness measures, reskilling programs, appropriate compensation interventions and enhanced career growth opportunities", said Pravin Rao, Chief Operating Officer. "With over 86% of Infoscions in India having received at least one dose of 'vaccination', we are now preparing to embrace the hybrid work model. We have equipped employees with the resources they need to be productive, cyber secure, stay connected, and maintain a work-life balance. Our talent strategy also factors in expanded hiring pools that include new communities and work locations", he added.

"Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimization and operating leverage. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfill client demand", said Nilanjan Roy, Chief Financial Officer. "Cash generation remained robust. We have executed the capital allocation policy with the successful closure of share buyback and step up in interim dividend to `15 per share", he added.

2. Capital Allocation

The company has completed the open market share buyback on September 8 at an average price of ~₹1,649 per share (compared to maximum Buyback Price of ₹1,750 per share). Consequently, the share capital of the company has reduced by 1.31%. With this, the company has returned ~82% of the free cash flow for FY20 and FY21 through dividends and buyback.

The Board has announced interim dividend of `15 per share for FY22.

3. Client wins & Testimonials

• Infosys recently launched Infosys Equinox to help enterprises securely deliver hyper-segmented, personalized omnichannel commerce experiences for B2B and B2C buyers. Eric Nelson, Chief Information Officer North America, The Kraft Heinz Company, said, "Infosys Equinox serves us as a digital hub powering over 250 of our global brand sites, B2B ecommerce and recipe sites, as well as direct-to-consumer (D2C) initiatives. We are able to launch new brand sites in as little as 3 to 5 days. The platform also supports our hyper-personalization initiatives and distills real-time insights for our marketing programs. With Infosys Equinox, we at Kraft Heinz are well set to offer richer, more personalized, and meaningful experiences to our consumers."
• Infosys inaugurated its Automotive Digital Technology and Innovation Center in Stuttgart, Germany last quarter, furthering its strategic commitment to drive innovation and IT infrastructure transformation in the automotive sector. "As software becomes modular and IT infrastructure continues to scale, Daimler will take three simultaneous steps to transform its IT landscape: consolidation, scaling and modernization. Through establishing the Infosys Automotive and Mobility GmbH in Germany, Infosys is committed to grow with us in the automotive industry and provide exciting career opportunities for our employees. The center will also set new standards for cloud and infrastructure services in the automotive industry. We're delighted that through this partnership, Daimler will strengthen its overall technology investment and partnership strategy," said, Jan Brecht, Chief Information Officer, Daimler and Mercedes-Benz.
• Infosys collaborated with Goldman Sachs to digitally transform their Client Services Helpdesk using ServiceNow Platform. "Infosys truly partnered with Goldman Sachs by providing best practices and

guidance in our service management transformation journey. They collaboratively worked with us to understand our pain points and challenges. Based on their experience, Infosys ensured that the solution was aligned with our requirements and expectations, thus resulting in improved agent productivity and enhanced user experience.", said, Robert Naccarella, Managing Director, Goldman Sachs.

• Frost Bank and Infosys recently launched a new mortgage loan product offering. "Offering mortgage loans along with our other consumer loan products is integral to meeting our customers' evolving needs and bringing the Frost experience to more Texans," said, Phil Green, Chairman and CEO at Frost Bank. "Working with a world-class company like Infosys will allow us to be involved in the entire process from start to finish and bring our industry-leading customer service experience to mortgages."
• Infosys and The Economist Group announced a new strategic partnership around sustainability. Lara Boro, CEO, The Economist Group, said, "A sustainable future will depend on creative collaboration. This exciting partnership with Infosys shows how pooling strengths can accelerate innovation and amplify impact in the pursuit of progress."
• BankDhofar, one of the leading banks in Oman, was able to successfully complete a three-phase modernization program leveraging the Finacle Digital Banking Suite. Abdul Hakeem Omar Al Ojaili, Chief Executive Officer, BankDhofar, said, "We are glad that BankDhofar Vision 2020 is today a reality with a new digital-first banking platform, powered by Infosys Finacle. We are glad that our transformation program covering technology upgrade, channels upliftment, process improvement, data restructuring, branch modernization, and culture transformation are well underway, allowing no room for disruption to the end customer. Post go-live, we believe BankDhofar ranks the highest in terms of technology leadership, and functional coverage. We are now well positioned to offer our customers a world-class banking facility with the new platform, either at the branch or through digital channels, as we strive to strengthen our leadership position in the Sultanate."
• Universities and Colleges Admissions Service (UCAS), UK, recently announced a major core technology collaboration with Infosys. Sander Kristel, UCAS' Chief Operations Officer, said, "I cannot emphasise enough the importance of this new agreement with Infosys, and the benefits to UCAS staff and customers. It represents a real shift in our partnership, and will focus extensively on automation, innovation, and efficiency across the business, which is key to delivering on our strategy for the future."
• Infosys Living Labs partners with venture capital investment arms of global enterprises to mutually enrich portfolios of tech innovators. "We are excited to partner with Infosys to help our portfolio companies scale new heights by providing them access to Infosys' global client base. Infosys brings its rich heritage of delivery excellence and global access to our portfolio companies. We are a growth investor in lighthouse technologies and Infosys Living Labs provides a great opportunity to bring best in class technology innovations to clients while de-risking the adoption of startup solutions for Infosys clients." said, Matthew Koertge, Managing Director, Telstra Ventures.
• Infosys Public Services recently launched a blockchain network to modernize public recordkeeping for County of Riverside in California. "As Riverside County's Assessor-County Clerk-Recorder, our goal is to provide recordkeeping, record issuance, and property valuation in a timely, secure, and cost-effective manner," said, Peter Aldana, Assessor-County Clerk-Recorder at County of Riverside. "Adoption of blockchain technology will greatly advance our digital transformation journey towards our goal."

4. Recognitions

• Infosys won the 2021 Microsoft US Partner Award for demonstrating excellence in Azure AI capabilities
• Infosys won four Stevie® Awards for great employers 2021
• Ranked #1 by HfS in the Banking and Financial Services Providers Top 10, 2021
• Ranked as a leader in Gartner Magic Quadrant for IT Services for Communications Service Providers, Worldwide
• Ranked as a leader in The Forrester Wave™ Application Modernization and Migration Services, Q3 2021
• Ranked as a leader in Everest Data and Analytics (D&A) Services PEAK Matrix® Assessment 2021
• Ranked as a leader in Everest Envisioning the Connected Future: 5G Engineering Services PEAK Matrix Assessment 2021
• Positioned as a leader in IDC MarketScape Asia/Pacific Managed Cloud Services 2021 Vendor Assessment
• Positioned as a leader in IDC MarketScape Worldwide Life Science R&D ITO Services Vendor Assessment
• Positioned as a leader in IDC MarketScape European Smart Manufacturing Service Providers 2021 Vendor Assessment
• Positioned as a leader in NelsonHall Wealth and Asset Management NEAT Evaluation 2021
• Ranked as a leader in Constellation Public Cloud Transformation Services: Global
• Positioned as a leader in Constellation Customer Experience Operation Services: Global
• Positioned as a leader in Constellation Campaign to Commerce: Best of Breed Commerce Platforms
• Positioned as a leader in Everest Microsoft Dynamics 365 Services PEAK Matrix® Assessment 2021
• Infosys Finacle rated as a leader by Forrester in Forrester Wave™: Digital Banking Engagement Platforms, Q3 2021 report
• Infosys Finacle rated as a leader by Forrester in Forrester Wave™: Digital Banking Engagement Hubs, Q3 2021 report
• Positioned as a leader in IDC MarketScape: Worldwide B2B Commerce Services for Industrial Manufacturing 2021 Vendor Assessment
• Infosys positioned as a leader in the ISG Provider Lens™ Cybersecurity Services and Solutions 2021 for U.S.
• Infosys ranked as a North America Utilities leader in ISG Provider Lens™ 2021 Report

• Infosys rated as a leader in ISG Provider Lens™ SAP HANA Ecosystem Services in U.S. 2021 and Germany 2021 Quadrant Report
• Infosys rated as a 'Global' leader in ISG Provider Lens™ 'Internet of Things Services and Solutions 2021' report.
• Infosys positioned as a leader in 'Next-Gen Private/Hybrid Cloud Data Center Services and Solutions 2021' in ISG Provider Lens™ for U.S.
• Infosys positioned as a leader in 'Network Software Defined Solutions and Services 2021' in ISG Provider Lens™ for Australia, U.K., and Nordics Region
• Infosys rated as a leader in 'Avasant Digital Talent Capability 2021' RadarView™

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 over 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

Investor Relations	Sandeep Mahindroo +91 80 3980 1018
	Sandeep_Mahindroo@infosys.com
Media Relations	Rishi Basu

+91 80 4156 3998

Rajarshi.Basu@infosys.com

Harini Babu +1 46999 63516

Harini\_Babu@infosys.com

Infosys Limited and subsidiaries

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:		(Dollars in millions)
	September 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	2,432	3,380
Current investments	671	320
Trade receivables	2,711	2,639
Unbilled revenue	1,268	1,030
Other Current assets	1,002	938
Total current assets	8,084	8,307
Non-current assets
Property, plant and equipment and Right-of-use assets	2,429	2,519
Goodwill and other Intangible assets	1,080	1,115
Non-current investments	1,360	1,623
Unbilled revenue	102	81
Other non-current assets	1,240	1,180
Total non-current assets	6,211	6,518
Total assets	14,295	14,825
LIABILITIES AND EQUITY
Current liabilities
Trade payables	428	362
Unearned revenue	592	554
Employee benefit obligations	301	276
Other current liabilities and provisions	2,409	2,072
Total current liabilities	3,730	3,264
Non-current liabilities
Lease liabilities	587	627
Other non-current liabilities	501	432
Total non-current liabilities	1,088	1,059
Total liabilities	4,818	4,323
Total equity attributable to equity holders of the company	9,420	10,442
Non-controlling interests	57	60
Total equity	9,477	10,502
Total liabilities and equity	14,295	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 September 30, 2021	3 months ended September 30, 2020	6 months ended September 30, 2021	6 months ended September 30, 2020
Revenues	3,998	3,312	7,780	6,433
Cost of sales	2,675	2,125	5,184	4,196
Gross profit	1,323	1,187	2,596	2,237
Operating expenses:
Selling and marketing expenses	167	153	336	305
Administrative expenses	215	194	423	385
Total operating expenses	382	347	759	690
Operating profit	941	840	1,837	1,547
Other income, net (3)	65	70	142	128
Profit before income taxes	1,006	910	1,979	1,675
Income tax expense	272	255	540	456
Net profit (before minority interest)	734	655	1,439	1,219
Net profit (after minority interest)	733	653	1,437	1,212
Basic EPS (\$)	0.17	0.15	0.34	0.29
Diluted EPS (\$)	0.17	0.15	0.34	0.29

NOTES:

• 1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30, 2021 which have been taken on record at the Board meeting held on October 13, 2021.
• 2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.
• 3. Other Income is net of Finance Cost.

IFRS – INR Press Release IFRS – INR Press Release

Growth accelerates in Q2 with resilient operating margins. Double digit growth across segments Revenue guidance for FY22 revised upwards to 16.5%-17.5%. Margin guidance retained at 22%-24%

Bengaluru, India – October 13, 2021: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered a strong Q2 performance with YoY growth increasing to 19.4% and sequential growth accelerating to 6.3% in constant currency. Growth was broad-based across geographies and segments with the largest geography, North America growing at 23.1% and the largest segment, Financial Services growing at 20.5%, YoY in constant currency. Large deal momentum continued with TCV of \$2.15 billion in Q2. Operating margin for the quarter was resilient at 23.6%. The Board has announced interim dividend of `15 per share for FY22.

"Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys CobaltTM, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.", said Salil Parekh, CEO and MD. "Given this continued momentum we have further increased our revenue growth guidance to 16.5%-17.5%", he added.

42.4% YoY CC Digital growth

19.4% YoY 6.3% QoQ CC Revenue growth

23.6% Operating margin 12.7% YoY Increase in EPS (₹ terms)

\$2.15 bn Large deal signings

1. Key highlights:

For the quarter ended September 30, 2021

• Revenues in CC terms grew by 19.4% YoY and 6.3% QoQ
• Reported revenues at `29,602 crore, growth of 20.5% YoY
• Digital revenues at 56.1% of total revenues, YoY CC growth of 42.4%
• Operating margin at 23.6%, decline of 1.8% YoY and 0.1% QoQ
• Basic EPS at `12.88, growth of 12.7% YoY
• FCF at `5,272 crore, YoY growth of 5.7%; FCF conversion at 97.1% of net profit

For six months ended September 30, 2021

• Revenues in CC terms grew by 18.1% YoY
• Reported revenues at `57,498 crore, growth of 19.2% YoY
• Digital revenues at 55.0% of total revenues, YoY CC growth of 42.2%
• Operating margin at 23.6%, decline of 0.4% YoY
• Basic EPS at `25.11, growth of 17.3% YoY
• FCF at `11,635 crore, YoY growth of 10.7%; FCF conversion at 109.5% of net profit

"In order to harness the full potential of the market opportunity, we are expanding our college graduates hiring program to ~45,000 for the year. Simultaneously, we continue to strengthen employee value proposition including health and wellness measures, reskilling programs, appropriate compensation interventions and enhanced career growth opportunities", said Pravin Rao, Chief Operating Officer. "With over 86% of Infoscions in India having received at least one dose of 'vaccination', we are now preparing to embrace the hybrid work model. We have equipped employees with the resources they need to be productive, cyber secure, stay connected, and maintain a work-life balance. Our talent strategy also factors in expanded hiring pools that include new communities and work locations", he added.

"Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimization and operating leverage. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfill client demand", said Nilanjan Roy, Chief Financial Officer. "Cash generation remained robust. We have executed the capital allocation policy with the successful closure of share buyback and step up in interim dividend to `15 per share", he added.

2. Capital Allocation

The company has completed the open market share buyback on September 8 at an average price of ~₹1,649 per share (compared to maximum Buyback Price of ₹1,750 per share). Consequently, the share capital of the company has reduced by 1.31%. With this, the company has returned ~82% of the free cash flow for FY20 and FY21 through dividends and buyback.

The Board has announced interim dividend of `15 per share for FY22.

3. Client wins & Testimonials

• Infosys recently launched Infosys Equinox to help enterprises securely deliver hyper-segmented, personalized omnichannel commerce experiences for B2B and B2C buyers. Eric Nelson, Chief Information Officer North America, The Kraft Heinz Company, said, "Infosys Equinox serves us as a digital hub powering over 250 of our global brand sites, B2B ecommerce and recipe sites, as well as direct-to-consumer (D2C) initiatives. We are able to launch new brand sites in as little as 3 to 5 days. The platform also supports our hyper-personalization initiatives and distills real-time insights for our marketing programs. With Infosys Equinox, we at Kraft Heinz are well set to offer richer, more personalized, and meaningful experiences to our consumers."
• Infosys inaugurated its Automotive Digital Technology and Innovation Center in Stuttgart, Germany last quarter, furthering its strategic commitment to drive innovation and IT infrastructure transformation in the automotive sector. "As software becomes modular and IT infrastructure continues to scale, Daimler will take three simultaneous steps to transform its IT landscape: consolidation, scaling and modernization. Through establishing the Infosys Automotive and Mobility GmbH in Germany, Infosys is committed to grow with us in the automotive industry and provide exciting career opportunities for our employees. The center will also set new standards for cloud and infrastructure services in the automotive industry. We're delighted that through this partnership, Daimler will strengthen its overall technology investment and partnership strategy," said, Jan Brecht, Chief Information Officer, Daimler and Mercedes-Benz.
• Infosys collaborated with Goldman Sachs to digitally transform their Client Services Helpdesk using ServiceNow Platform. "Infosys truly partnered with Goldman Sachs by providing best practices and

guidance in our service management transformation journey. They collaboratively worked with us to understand our pain points and challenges. Based on their experience, Infosys ensured that the solution was aligned with our requirements and expectations, thus resulting in improved agent productivity and enhanced user experience.", said, Robert Naccarella, Managing Director, Goldman Sachs.

• Frost Bank and Infosys recently launched a new mortgage loan product offering. "Offering mortgage loans along with our other consumer loan products is integral to meeting our customers' evolving needs and bringing the Frost experience to more Texans," said, Phil Green, Chairman and CEO at Frost Bank. "Working with a world-class company like Infosys will allow us to be involved in the entire process from start to finish and bring our industry-leading customer service experience to mortgages."
• Infosys and The Economist Group announced a new strategic partnership around sustainability. Lara Boro, CEO, The Economist Group, said, "A sustainable future will depend on creative collaboration. This exciting partnership with Infosys shows how pooling strengths can accelerate innovation and amplify impact in the pursuit of progress."
• BankDhofar, one of the leading banks in Oman, was able to successfully complete a three-phase modernization program leveraging the Finacle Digital Banking Suite. Abdul Hakeem Omar Al Ojaili, Chief Executive Officer, BankDhofar, said, "We are glad that BankDhofar Vision 2020 is today a reality with a new digital-first banking platform, powered by Infosys Finacle. We are glad that our transformation program covering technology upgrade, channels upliftment, process improvement, data restructuring, branch modernization, and culture transformation are well underway, allowing no room for disruption to the end customer. Post go-live, we believe BankDhofar ranks the highest in terms of technology leadership, and functional coverage. We are now well positioned to offer our customers a world-class banking facility with the new platform, either at the branch or through digital channels, as we strive to strengthen our leadership position in the Sultanate."
• Universities and Colleges Admissions Service (UCAS), UK, recently announced a major core technology collaboration with Infosys. Sander Kristel, UCAS' Chief Operations Officer, said, "I cannot emphasise enough the importance of this new agreement with Infosys, and the benefits to UCAS staff and customers. It represents a real shift in our partnership, and will focus extensively on automation, innovation, and efficiency across the business, which is key to delivering on our strategy for the future."
• Infosys Living Labs partners with venture capital investment arms of global enterprises to mutually enrich portfolios of tech innovators. "We are excited to partner with Infosys to help our portfolio companies scale new heights by providing them access to Infosys' global client base. Infosys brings its rich heritage of delivery excellence and global access to our portfolio companies. We are a growth investor in lighthouse technologies and Infosys Living Labs provides a great opportunity to bring best in class technology innovations to clients while de-risking the adoption of startup solutions for Infosys clients." said, Matthew Koertge, Managing Director, Telstra Ventures.
• Infosys Public Services recently launched a blockchain network to modernize public recordkeeping for County of Riverside in California. "As Riverside County's Assessor-County Clerk-Recorder, our goal is to provide recordkeeping, record issuance, and property valuation in a timely, secure, and cost-effective manner," said, Peter Aldana, Assessor-County Clerk-Recorder at County of Riverside. "Adoption of blockchain technology will greatly advance our digital transformation journey towards our goal."

4. Recognitions

• Infosys won the 2021 Microsoft US Partner Award for demonstrating excellence in Azure AI capabilities
• Infosys won four Stevie® Awards for great employers 2021
• Ranked #1 by HfS in the Banking and Financial Services Providers Top 10, 2021
• Ranked as a leader in Gartner Magic Quadrant for IT Services for Communications Service Providers, Worldwide
• Ranked as a leader in The Forrester Wave™ Application Modernization and Migration Services, Q3 2021
• Ranked as a leader in Everest Data and Analytics (D&A) Services PEAK Matrix® Assessment 2021
• Ranked as a leader in Everest Envisioning the Connected Future: 5G Engineering Services PEAK Matrix Assessment 2021
• Positioned as a leader in IDC MarketScape Asia/Pacific Managed Cloud Services 2021 Vendor Assessment
• Positioned as a leader in IDC MarketScape Worldwide Life Science R&D ITO Services Vendor Assessment
• Positioned as a leader in IDC MarketScape European Smart Manufacturing Service Providers 2021 Vendor Assessment
• Positioned as a leader in NelsonHall Wealth and Asset Management NEAT Evaluation 2021
• Ranked as a leader in Constellation Public Cloud Transformation Services: Global
• Positioned as a leader in Constellation Customer Experience Operation Services: Global
• Positioned as a leader in Constellation Campaign to Commerce: Best of Breed Commerce Platforms
• Positioned as a leader in Everest Microsoft Dynamics 365 Services PEAK Matrix® Assessment 2021
• Infosys Finacle rated as a leader by Forrester in Forrester Wave™: Digital Banking Engagement Platforms, Q3 2021 report
• Infosys Finacle rated as a leader by Forrester in Forrester Wave™: Digital Banking Engagement Hubs, Q3 2021 report
• Positioned as a leader in IDC MarketScape: Worldwide B2B Commerce Services for Industrial Manufacturing 2021 Vendor Assessment
• Infosys positioned as a leader in the ISG Provider Lens™ Cybersecurity Services and Solutions 2021 for U.S.
• Infosys ranked as a North America Utilities leader in ISG Provider Lens™ 2021 Report

• Infosys rated as a leader in ISG Provider Lens™ SAP HANA Ecosystem Services in U.S. 2021 and Germany 2021 Quadrant Report
• Infosys rated as a 'Global' leader in ISG Provider Lens™ 'Internet of Things Services and Solutions 2021' report.
• Infosys positioned as a leader in 'Next-Gen Private/Hybrid Cloud Data Center Services and Solutions 2021' in ISG Provider Lens™ for U.S.
• Infosys positioned as a leader in 'Network Software Defined Solutions and Services 2021' in ISG Provider Lens™ for Australia, U.K., and Nordics Region
• Infosys rated as a leader in 'Avasant Digital Talent Capability 2021' RadarView™

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 over 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

Investor Relations	Sandeep Mahindroo +91 80 3980 1018
	Sandeep_Mahindroo@infosys.com
Media Relations	Rishi Basu

+91 80 4156 3998

Rajarshi.Basu@infosys.com

Harini Babu +1 46999 63516

Harini\_Babu@infosys.com

Infosys Limited and subsidiaries

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:	(in ` crore)
	September 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	18,056	24,714
Current investments	4,983	2,342
Trade receivables	20,121	19,294
Unbilled revenue	9,413	7,527
Other Current assets	7,435	6,856
Total current assets	60,008	60,733
Non-current assets
Property, plant and equipment and Right-of-use assets	18,021	18,417
Goodwill and other Intangible assets	8,017	8,151
Non-current investments	10,096	11,863
Unbilled revenue	758	594
Other non-current assets	9,210	8,628
Total non-current assets	46,102	47,653
Total assets	106,110	108,386
LIABILITIES AND EQUITY
Current liabilities
Trade payables	3,176	2,645
Unearned revenue	4,394	4,050
Employee benefit obligations	2,236	2,020
Other current liabilities and provisions	17,882	15,150
Total current liabilities	27,688	23,865
Non-current liabilities
Lease liabilities	4,356	4,587
Other non-current liabilities	3,718	3,152
Total non-current liabilities	8,074	7,739
Total liabilities	35,762	31,604
Total equity attributable to equity holders of the company	69,939	76,351
Non-controlling interests	409	431
Total equity	70,348	76,782
Total liabilities and equity	106,110	108,386

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

(In ` crore except per equity share data)
	3 months ended September 30, 2021	3 months ended September 30, 2020	6 months ended September 30, 2021	6 months ended September 30, 2020
Revenues	29,602	24,570	57,498	48,234
Cost of sales	19,806	15,771	38,312	31,473
Gross profit	9,796	8,799	19,186	16,761
Operating expenses:
Selling and marketing expenses	1,235	1,136	2,483	2,283
Administrative expenses	1,589	1,435	3,128	2,885
Total operating expenses	2,824	2,571	5,611	5,168
Operating profit	6,972	6,228	13,575	11,593
Other income, net (3)	476	522	1,048	950
Profit before income taxes	7,448	6,750	14,623	12,543
Income tax expense	2,020	1,892	3,994	3,412
Net profit (before minority interest)	5,428	4,858	10,629	9,131
Net profit (after minority interest)	5,421	4,845	10,616	9,078
Basic EPS (\$)	12.88	11.42	25.11	21.40
Diluted EPS (\$)	12.85	11.40	25.06	21.37

NOTES:

• 1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30, 2021 which have been taken on record at the Board meeting held on October 13, 2021.
• 2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.
• 3. Other Income is net of Finance Cost.

Chartered Accountants One International Centre, 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 September 30, 2021, the Condensed Consolidated Statement of Comprehensive Income for the three months and six months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the six 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 September 30, 2021, the consolidated profit and consolidated total comprehensive income for the three months and six months ended on that date, consolidated changes in equity and its consolidated cash flows for the six 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.

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: October 13, 2021

Condensed Consolidated Balance Sheet 2
Condensed Consolidated Statement of Comprehensive Income 3
Condensed Consolidated Statement of Changes in Equity 4
Condensed Consolidated Statement of Cash Flows 6
Overview and Notes to the Interim Condensed Consolidated Financial Statements 8
1. Overview 8
1.1 Company overview 8
1.2 Basis of preparation of financial statements 8
1.3 Basis of consolidation 8
1.4 Use of estimates and judgments 8
1.5 Critical accounting estimates and judgements 9
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 Leases27
2.9 Goodwill and intangible assets30
2.10 Business combination32
2.11 Employees' Stock Option Plans (ESOP)33
2.12 Income taxes36
2.13 Basic and diluted shares used in computing earnings per equity share 38
2.14 Related party transactions39
2.15 Segment Reporting 40
2.16 Revenue from Operations43
2.17 Unbilled revenue 47
2.18 Break-up of expenses and other income, net 48
2.19 Equity 53

		(Dollars in millions except equity share data)
Condensed Consolidated Balance Sheet as at	Note	September 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	2.1	2,432	3,380
Current investments	2.2	671	320
Trade receivables		2,711	2,639
Unbilled revenue	2.17	1,268	1,030
Prepayments and other current assets	2.4	986	912
Derivative financial instruments	2.3	16	26
Total current assets		8,084	8,307
Non-current assets
Property, plant and equipment	2.7	1,809	1,863
Right-of-use assets	2.8	620	656
Goodwill	2.9	825	832
Intangible assets		255	283
Non-current investments	2.2	1,360	1,623
Unbilled revenue	2.17	102	81
Deferred income tax assets	2.12	131	150
Income tax assets	2.12	781	795
Other non-current assets	2.4	328	235
Total Non-current assets		6,211	6,518
Total assets		14,295	14,825
LIABILITIES AND EQUITY Current liabilities
Trade payables		428	362
Lease Liabilities	2.8	106	101
Derivative financial instruments	2.3	6	8
Current income tax liabilities	2.12	331	294
Unearned revenue		592	554
Employee benefit obligations		301	276
Provisions	2.6	116	97
Other current liabilities	2.5	1,850	1,572
Total current liabilities		3,730	3,264
Non-current liabilities
Lease liabilities	2.8	587	627
Deferred income tax liabilities	2.12	115	120
Employee benefit obligations		14	13
Other non-current liabilities	2.5	372	299
Total liabilities		4,818	4,323
Equity
Share capital - ₹5 (\$0.16) par value 4,800,000,000 (4,800,000,000) equity shares authorized, issued and outstanding
4,190,623,841 (4,245,146,114) equity shares fully paid up, net of 14,840,585 (15,514,732) treasury shares as at	2.19	328	332
September 30, 2021 and March 31, 2021
Share premium		301	359
Retained earnings		11,100	12,087
Cash flow hedge reserve		3	2
Other reserves		1,054	908
Capital redemption reserve		21	17
Other components of equity		(3,387)	(3,263)
Total equity attributable to equity holders of the company		9,420	10,442
Non-controlling interests		57	60
Total equity		9,477	10,502
Total liabilities and equity		14,295	14,825
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 Partner Membership No. 039826

Mumbai Bengaluru October 13, 2021 October 13, 2021

A.G.S. Manikantha Company Secretary

Nandan M. Nilekani Salil Parekh U.B. Pravin Rao Chairman Chief Executive Officer Chief Operating Officer

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

and Managing Director and Whole-time Director

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

Condensed Consolidated Statement of Comprehensive Income		(Dollars in millions except equity share and per equity share data) Note Three months ended Six months ended
			September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Revenues		2.16	3,998	3,312	7,780	6,433
Cost of sales		2.18	2,675	2,125	5,184	4,196
Gross profit			1,323	1,187	2,596	2,237
Operating expenses:
Selling and marketing expenses		2.18
Administrative expenses		2.18	167	153	336	305
			215	194	423	385
Total operating expenses			382	347	759	690
Operating profit		2.18	941	840	1,837	1,547
Other income, net			71	76	155	140
Finance cost			6	6	13	12
Profit before income taxes		2.12	1,006	910	1,979	1,675
Income tax expense			272	255	540	456
Net profit			734	655	1,439	1,219
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss: Re-measurements of the net defined benefit liability/asset, net			2	1	(2)	21
Equity instrument through other comprehensive income, net			5	(1)	5	(1)
			7	-	3	20
Items that will be reclassified subsequently to profit or loss:
Fair valuation of investments, net			7	(6)	12	1
Fair value changes on derivatives designated as cash flow hedge, net Foreign currency translation			1 (7)	4 213	1 (139)	3 254
			1	211	(126)	258
Total other comprehensive income/(loss), net of tax			8	211	(123)	278
Total comprehensive income			742	866	1,316	1,497
Profit attributable to: Owners of the company
Non-controlling interests			733 1	653 2	1,437 2	1,212 7
			734	655	1,439	1,219
Total comprehensive income attributable to:
Owners of the company			741	864	1,314	1,489
Non-controlling interests			1 742	2 866	2 1,316	8 1,497
Earnings per equity share
Basic (\$)			0.17	0.15	0.34	0.29
Diluted (\$)			0.17	0.15	0.34	0.29
Weighted average equity shares used in computing earnings per equity share		2.13
Basic			4,210,064,823	4,241,908,471	4,227,694,034	4,241,506,966
Diluted			4,218,293,582	4,248,961,564	4,236,051,581	4,248,434,533
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 Chartered Accountants Firm's Registration No : 117366W/ W-100018	for and on behalf of the Board of Directors of Infosys Limited Nandan M. Nilekani		Salil Parekh		U.B. Pravin Rao
Sanjiv V. Pilgaonkar	Chairman		Chief Executive Officer and Managing Director		Chief Operating Officer and Whole-time Director

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

Mumbai Bengaluru

Membership No. 039826

Partner

A.G.S. Manikantha Company Secretary October 13, 2021 October 13, 2021

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	Non controlling 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 six months ended September 30, 2020
Net profit	-	-	-	1,212	-	-	-	-	1,212	7	1,219
Remeasurement of the net defined benefit liability/asset, net*	-	-	-	-	-	-	-	21	21	-	21
Equity instruments through other comprehensive income, net*	-	-	-	-	-	-	-	(1)	(1)	-	(1)
Fair value changes on investments, net*	-	-	-	-	-	-	-	1	1	-	1
Fair value changes on derivatives designated as cash flow hedge, net*	-	-	-	-	-	-	3	-	3	-	3
Foreign currency translation	-	-	-	-	-	-	-	253	253	1	254
Total comprehensive income for the period	-	-	-	1,212	-	-	3	274	1,489	8	1,497
Shares issued on exercise of employee stock options (Refer note 2.11)	1,752,826	-	1	-	-	-	-	-	1	-	1
Transfer to other reserves	-	-	-	(198)	198	-	-	-	-	-	-
Transfer from other reserves on utilization	-	-	-	77	(77)	-	-	-	-	-	-
Employee stock compensation expense (Refer note 2.11)	-	-	18	-	-	-	-	-	18	-	18
Income tax benefit arising on exercise of stock options	-	-	1	-	-	-	-	-	1	-	1
Dividends paid to non controlling interest of subsidiary	-	-	-	-	-	-	-	-	-	(3)	(3)
Dividends (including dividend distribution tax)#	-	-	-	(532)	-	-	-	-	(532)	-	(532)
Balance as at September 30, 2020	4,242,506,036	332	325	11,573	715	17	1	(3,340)	9,623	60	9,683

(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	Non controlling interest	Total equity
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 six months ended September 30, 2021
Net profit	-	-	-	1,437	-	-	-	-	1,437	2	1,439
Remeasurement of the net defined benefit liability/asset, net*	-	-	-	-	-	-	-	(2)	(2)	-	(2)
Equity instruments through other comprehensive income, net*	-	-	-	-	-	-	-	5	5	-	5
Fair value changes on investments, net*	-	-	-	-	-	-	-	12	12	-	12
Fair value changes on derivatives designated as cash flow hedge, net*	-	-	-	-	-	-	1	-	1	-	1
Foreign currency translation	-	-	-	-	-	-	-	(139)	(139)	-	(139)
Total comprehensive income for the period	-	-	-	1,437	-	-	1	(124)	1,314	2	1,316
Shares issued on exercise of employee stock options (Refer to note 2.11)	1,285,064	-	1	-	-	-	-	-	1	-	1
Buyback of equity shares (Refer to note 2.19)**	(55,807,337)	(4)	(86)	(1,409)	-	-	-	-	(1,499)	-	(1,499)
Transaction cost relating to buyback *	-	-	-	(4)	-	-	-	-	(4)	-	(4)
Amount transferred to capital redemption reserve upon buyback	-	-	-	(4)		4
Transfer from other reserves on utilization	-	-	-	56	(56)	-	-	-	-	-	-
Transfer to other reserves	-	-	-	(202)	202	-	-	-	-	-	-
Employee stock compensation expense (Refer to note 2.11)	-	-	26	-	-	-	-	-	26	-	26
Income tax benefit arising on exercise of stock options	-	-	1	-	-	-	-	-	1	-	1
Dividends paid to non controlling interest of subsidiary	-	-	-	-	-	-	-	-	-	(5)	(5)
Dividends#	-	-	-	(861)	-	-	-	-	(861)	-	(861)
Balance as at September 30, 2021	4,190,623,841	328	301	11,100	1,054	21	3	(3,387)	9,420	57	9,477

* net of tax

** including tax on buyback of \$256 million

# net of treasury shares

(1) excludes treasury shares of 14,840,585 as at September 30, 2021, 15,514,732 as at April 1, 2021, 16,905,562 as at September 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

Sanjiv V. Pilgaonkar Partner Membership No.039826

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

A.G.S. Manikantha Company Secretary

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

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

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

Mumbai Bengaluru October 13, 2021 October 13, 2021

Condensed Consolidated 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 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		Six months ended
		September 30, 2021	September 30, 2020
Operating activities:
Net Profit		1,439	1,219
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.18	228	215
Interest and dividend income		(54)	(35)
Finance Cost		13	12
Income tax expense	2.12	540	456
Effect of exchange rate changes on assets and liabilities, net		8	(2)
Impairment loss under expected credit loss model		12	21
Stock compensation expense	2.11	28	24
Other adjustments		5	(9)
Changes in working capital
Trade receivables and unbilled revenue		(401)	(9)
Prepayments and other assets		(40)	44
Trade payables		47	(64)
Unearned revenue		47	47
Other liabilities and provisions		326	56
Cash generated from operations		2,198	1,975
Income taxes paid		(484)	(399)
Net cash generated by operating activities		1,714	1,576
Investing activities:
Expenditure on property, plant and equipment and intangibles		(139)	(174)
Deposits placed with corporation		(69)	(66)
Redemption of deposits placed with corporations		46	48
Interest and dividend received		57	34
Payment of contingent consideration pertaining to acquisition of business		(7)	(20)
Escrow and other deposits pertaining to Buyback		(57)	-
Redemption of escrow and other deposits pertaining to Buyback		57	-
Payments to acquire Investments
Liquid mutual funds and fixed maturity plan securities		(3,440)	(1,596)
Certificate of deposits		(67)	-
Quoted debt securities		(109)	(733)
Equity and preference securities		(2)	-
Proceeds on sale of Investments
Quoted debt securities		357	300
Certificate of deposits		67	120
Liquid mutual funds and fixed maturity plan securities		3,103	1,582
Other Investments		-	3
Other payments		(3)	-
Other receipts		4	3
Net cash (used)/generated in investing activities		(202)	(499)

Financing activities:
Payment of Lease Liabilities	2.8	(57)	(47)
Payment of dividends		(861)	(539)
Payment of dividend to non controlling interests of subsidiary		-	(3)
Shares issued on exercise of employee stock options		1	1
Other payments		(2)	-
Other receipts		16	-
Buy back of equity shares including transaction costs and tax on buyback	2.19.1	(1,503)	-
Net cash used in financing activities		(2,406)	(588)
Effect of exchange rate changes on cash and cash equivalents		(54)	84
Net increase / (decrease) in cash and cash equivalents		(894)	489
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	2,432	3,038
Supplementary information:
Restricted cash balance	2.1	71	55

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

Sanjiv V. Pilgaonkar Partner Membership No. 039826

A.G.S. Manikantha Company Secretary

Mumbai Bengaluru October 13, 2021 October 13, 2021

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

Overview and Notes to the Interim Condensed 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 October 13, 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.

As the quarter and year-end figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarters might not always add up to the year-end figures reported in this statement.

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 consolidated 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 judgements 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 interim condensed 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 interim condensed 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.(refer to note 2.10)

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. (Refer to note 2.9)

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 to 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	Definition of Accounting Estimates
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
	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 condensed 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 condensed 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 7,2021, 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.

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.

1. 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	September 30, 2021	March 31, 2021
Cash and bank deposits	2,020	2,745
Deposits with financial institutions	412	635
Total Cash and cash equivalents	2,432	3,380

Cash and cash equivalents as at September 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
	September 30, 2021	March 31, 2021
(i) Current
Amortized cost
Quoted debt securities	3	-
Fair value through profit or loss
Liquid Mutual funds	544	205
Fair Value through Other comprehensive
income
Quoted debt securities	124	115
Total current investments	671	320
(ii) Non-current
Amortized cost
Quoted debt securities	287	294
Fair value through Other comprehensive
income
Quoted debt securities	1,028	1,293
Unquoted equity and preference securities	30	23
Fair value through profit or loss
Unquoted Preference securities	3	2
Unquoted Compulsorily convertible debentures	1	1
Others(1)	11	10
Total Non-current investments	1,360	1,623
Total investments	2,031	1,943
Investment carried at amortized cost	290	294
Investments carried at fair value through other comprehensive
income	1,182	1,431
Investments carried at fair value through profit or loss	559	218

(1)Uncalled capital commitments outstanding as on September 30, 2021 and March 31, 2021 was \$4 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 investment	Method	As at September 30, 2021	As at March 31, 2021
Liquid mutual fund units	Quoted price	544	205
Quoted debt securities- carried at amortized cost	Quoted price and market observable inputs	340	347
Quoted debt securities- carried at Fair value through other comprehensive income	Quoted price and market observable inputs	1,152	1,408
Unquoted equity and preference securities carried at fair value through other comprehensive income	Discounted cash flows method, Market multiples method, Option pricing model	30	23
Unquoted equity and preference securities - carried at fair value through profit or loss	Discounted cash flows method, Market multiples method, Option pricing model	3	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, Option pricing model	11	10
		2,081	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 carried 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 carried 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 or 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 carried 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 carried 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 condensed consolidated 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 condensed consolidated statement of comprehensive income.

Financial instruments by category

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

Amortized cost					Total carrying value	Total fair value
	Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
2,432	-	-	-	-	2,432	2,432
-	-	544	-	-	544	544
							(1)
-	-	3	30	-	33	33
-	-	1	-	-	1	1
-	-	11	-	-	11	11
2,711	-	-	-	-	2,711	2,711
626	-	-	-	-	626	626
552	-	-	-	-	552	542	(2)
428	-	-	-	-	428	428
693		-	-	-	693	693
-	-	94	-	-	94	94
1,685	-	16	-	-	1,701	1,701
2,806	-	116	-	-	2,922	2,922
	290 - 6,611 -	- - - -	Financial assets/ liabilities at fair value through profit or loss - 11 570 6	- - 30 -	Financial assets/liabilities at fair value through OCI 1,152 5 1,157 -	1,442 16 8,368 6	(Dollars in millions) 1,492 16 8,408 6

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

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of \$10 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)

	Amortized cost		Financial assets/ Financial assets/liabilities liabilities at fair value at fair value through OCI through profit or loss		Total carrying value	Total fair value
Particulars		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.1)	3,380	-	-	-	-	3,380	3,380
Investments (Refer note 2.2)
Liquid mutual fund units	-	-	205	-	-	205	205
Quoted debt securities	294	-	-	-	1,408	1,702	1,755	(1)
Certificate of deposits Unquoted Compulsorily convertible debentures	- -	- -	- 1	- -	- -	- 1	- 1
Unquoted equity and preference securities	-	-	2	23	-	25	25
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 to Note 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 Lease liabilities	362 728	- -	- -	- -	- -	362 728	362 728
Derivative financial instruments	-	-	8	-	-	8	8
Financial liability under option arrangements (Refer to note 2.5)	-	-	95	-	-	95	95
Other liabilities including contingent consideration (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 September 30, 2021

(Dollars in millions)

Particulars	As at September 30, 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)	544	544	-	-
Investments in quoted debt securities (Refer to Note 2.2)	1,492	1,230	262	-
Investments in unquoted equity and preference securities (Refer to Note 2.2)	33	-	-	33
Investments in unquoted compulsorily convertible debentures (Refer to Note 2.2)	1	-	-	1
Investments in unquoted investments others (Refer to Note 2.2)	11	-	-	11
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	16	-	16	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	6	-	6	-
Financial liability under option arrangements	94	-	-	94
Liability towards contingent consideration (Refer to note 2.5)*	16	-	-	16
*Discount rate pertaining to contingent consideration ranges from 8% to 14.5 %

During the six months ended September 30, 2021, quoted debt securities of \$136 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 \$212 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

				(Dollars in millions)
Particulars	As at March 31, 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)	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 investments others (Refer to Note 2.2)	10	-	-	10
Investments in unquoted compulsorily convertible debentures (Refer to Note	1	-	-	1
2.2) Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts	26	-	26	-
Liabilities
Derivative financial instruments- loss on outstanding foreign exchange forward 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.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

	(Dollars in millions)
	As at
Particulars	September 30, 2021	March 31, 2021
Current
Rental deposits	8	4
Security deposits	1	1
Loans to employees	26	22
Prepaid expenses(1)	183	159
Interest accrued and not due	67	85
Withholding taxes and others(1)	281	286
Advance payments to vendors for supply of goods(1)	9	19
Deposit with corporations*	292	276
Deferred contract cost(1)(#)	57	9
Net investment in sublease of right of use asset	6	5
Other non financial assets(1)	3	-
Other financial assets	53	46
Total Current prepayment and other assets	986	912
Non-current
Loans to employees	6	4
Security deposits	7	7
Deposit with corporations *	9	6
Defined benefit plan assets(1)	4	3
Prepaid expenses(1)	12	11
Deferred contract cost(1)(#)	121	20
Withholding taxes and others(1)	92	96
Net investment in sublease of right of use asset	45	48
Rental Deposits	25	30
Other financial assets	7	10
Total Non- current prepayment and other assets	328	235
Total prepayment and other assets	1,314	1,147
Financial assets in prepayments and other assets	552	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.

Includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for \$99 million which has been considered as financial liability. This includes \$90 million settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction (Refer to note 2.5)

2.5 Other liabilities

Other liabilities comprise the following:

(Dollars in millions)

	As at
Particulars	September 30, 2021	March 31, 2021
Current
Accrued compensation to employees	542	550
Accrued defined benefit plan liability(1)	-	1
Accrued expenses	842	612
Withholding taxes and others (1)	322	297
Retention money	2	2
Liabilities of controlled trusts	28	27
Deferred income - government grants(1)	2	-
Liability towards contingent consideration	9	10
Capital creditors	32	51
Other non financial liabilities(1)	1	1
Other financial liabilities#	70	21
Total Current other liabilities	1,850	1,572
Non-Current
Liability towards contingent consideration	7	12
Accrued compensation to employees	1	-
Accrued expenses	88	78
Accrued defined benefit plan liability(1)	42	44
Deferred income - government grants(1)	8	8
Deferred income (1)	2	2
Financial liability under option arrangements	94	95
Withholding taxes and others(1)	50	50
Other financial liabilities#	80	10
Total Non-current other liabilities	372	299
Total other liabilities	2,222	1,871
Financial liabilities included in other liabilities	1,795	1,468
Financial liability towards contingent consideration on an undiscounted basis	18	25

(1) Non financial liabilities

# Deferred contract cost in note 2.4 includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for \$99 million which has been considered as financial liability. This includes \$90 million settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction.

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	September 30, 2021	March 31, 2021
Provision for post sales client support and other provisions	116	97
	116	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 September 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 \$83 million (₹614 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 September 30, 2021:

							(Dollars in millions)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at July 1, 2021	188	1,446	675	1,068	416	6	3,799
Additions	2	41	18	42	10	-	113
Deletions*	-	-	-	(55)	(1)	-	(56)
Translation difference	-	1	-	-	-	-	1
Gross carrying value as at September 30, 2021	190	1,488	693	1,055	425	6	3,857
Accumulated depreciation as at July 1, 2021	-	(509)	(497)	(786)	(301)	(5)	(2,098)
Depreciation	-	(14)	(13)	(36)	(12)	-	(75)
Accumulated depreciation on deletions*	-	-	-	55	1	-	56
Translation difference	-	-	-	-	-	(2)	(2)
Accumulated depreciation as at September 30, 2021	-	(523)	(510)	(767)	(312)	(5)	(2,117)
Capital work-in progress as at September 30, 2021							69
Carrying value as at September 30, 2021	190	965	183	288	113	1	1,809
Capital work-in progress as at July 1, 2021							182
Carrying value as at July 1, 2021	188	937	178	282	115	1	1,883

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

(Dollars in millions)

Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at July 1, 2020	183	1,332	626	930	384	6	3,461
Additions	-	2	8	42	8	-	60
Deletions	-	-	(1)	(5)	(1)	-	(7)
Translation difference	5	33	15	22	11	-	86
Gross carrying value as at September 30, 2020	188	1,367	648	989	402	6	3,600
Accumulated depreciation as at July 1, 2020	-	(448)	(434)	(674)	(254)	(4)	(1,814)
Depreciation	-	(13)	(16)	(36)	(13)	-	(78)
Accumulated depreciation on deletions	-	-	1	5	1	-	7
Translation difference	-	(11)	(10)	(15)	(8)	-	(44)
Accumulated depreciation as at September 30, 2020	-	(472)	(459)	(720)	(274)	(4)	(1,929)
Capital work-in progress as at September 30, 2020							198
Carrying value as at September 30, 2020	188	895	189	269	128	2	1,869
Capital work-in progress as at July 1, 2020							178
Carrying value as at July 1, 2020	183	884	192	256	130	2	1,825

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

							(Dollars in millions)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at April 1, 2021	191	1,445	679	1,045	416	6	3,782
Additions	2	62	25	87	16	-	192
Additions- Business Combinations (Refer Note 2.10)	-	-	-	-	-	-	-
Deletions*	-	-	(1)	(62)	(2)	-	(65)
Translation difference	(3)	(19)	(10)	(15)	(5)	-	(52)
Gross carrying value as at September 30, 2021	190	1,488	693	1,055	425	6	3,857
Accumulated depreciation as at April 1, 2021	-	(503)	(492)	(771)	(294)	(4)	(2,064)
Depreciation	-	(28)	(27)	(69)	(24)	-	(148)
Accumulated depreciation on deletions*	-	-	1	62	2	-	65
Translation difference	-	8	8	11	4	(1)	30
Accumulated depreciation as at September 30, 2021	-	(523)	(510)	(767)	(312)	(5)	(2,117)
Capital work-in progress as at September 30, 2021							69
Carrying value as at September 30, 2021	190	965	183	288	113	1	1,809
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

*During each of the three months and six months ended September 30, 2021, certain assets which were old and not in use having gross book value of \$35 million (net book value: Nil) were retired.

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

Plant and Computer Furniture and Particulars Land Buildings Vehicles Total machinery equipment fixtures Gross carrying value as at April 1, 2020 174 1,324 621 882 381 6 3,388 Additions 9 7 12 88 11 - 127 Deletions - - (2) (6) (2) - (10) Translation difference 5 36 17 25 12 - 95 Gross carrying value as at September 30, 2020 188 1,367 648 989 402 6 3,600 Accumulated depreciation as at April 1, 2020 - (434) (418) (646) (243) (4) (1,745) Depreciation - (26) (32) (63) (24) - (145) Accumulated depreciation on deletions - - 2 6 2 - 10 Translation difference - (12) (11) (17) (9) - (49) Accumulated depreciation as at September 30, 2020 - (472) (459) (720) (274) (4) (1,929) Capital work-in progress as at September 30, 2020 198 Carrying value as at September 30, 2020 188 895 189 269 128 2 1,869 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				(Dollars in millions)

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 \$133 million and \$100 million as at September 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 September 30, 2021

					(Dollars in millions)
Particulars			Category of ROU asset
	Land	Buildings	Vehicle	Computer	Total
Balance as of July 1, 2021	85	499	3	26	613
Additions*	-	28	-	7	35
Deletions	-	-	-	(2)	(2)
Depreciation		(22)	(1)	(2)	(25)
Translation difference	-	(1)	-	-	(1)
Balance as of September 30, 2021	85	504	2	29	620

* Net of adjustments on account of modifications

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

					(Dollars in millions)
Particulars			Category of ROU asset
	Land	Buildings	Vehicle	Computer	Total
Balance as of July 1, 2020	83	435	3	8	529
Additions	1	51	-	1	53
Deletions	-	(4)	-	-	(4)
Depreciation	-	(20)	-	(1)	(21)
Translation difference	2	10	-	-	12
Balance as of September 30, 2020	86	472	3	8	569

Following are the changes in the carrying value of right of use assets for the six months ended September 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*	-	7	-	13	20
Deletions	-	-	-	(2)	(2)
Depreciation	-	(43)	(1)	(4)	(48)
Translation difference	(1)	(5)	-	-	(6)
Balance as of September 30, 2021	85	504	2	29	620

* Net of adjustments on account of modifications

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

Particulars				Category of ROU asset
	Land	Buildings	Vehicle	Computer	Total
Balance as of April 1, 2020	83	461	2	5	551
Additions*	1	49	1	4	55
Deletions	-	(12)	-	-	(12)
Depreciation	-	(40)	-	(1)	(41)
Translation difference	2	14	-	-	16
Balance as of September 30, 2020	86	472	3	8	569

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

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

	(Dollars in millions)
Particulars	As at
	September 30, March 31, 2021 2021
Current lease liabilities	106 101
Non-current lease liabilities	587 627
Total	693 728

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)
	As at
Particulars	September 30, 2021	March 31, 2021
Carrying value at the beginning	832	699
Goodwill on acquisition	-	102
Translation differences	(7)	31
Carrying value at the end	825	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). 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.

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 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 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 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.

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 14,840,585 and 15,514,732 shares as at September 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 September 30, 2021 and March 31, 2021.

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

		2019 Plan	2015 Plan
Particulars		Six months ended September 30,	Six months ended September 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

Note: No grants were made during the three months ended September 30, 2021 and September 30, 2020

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 September 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 months ended September 30, 2021	Three months ended September 30, 2020	Six months ended September 30, 2021	Six months ended September 30, 2020
Granted to:
KMP	3	3	5	5
Employees other than KMP	10	9	23	19
Total (1)	13	12	28	24
(1) Cash settled stock compensation expense included in the above	1	3	2	6

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 Shares RSU	Fiscal 2022- ADS-RSU	Fiscal 2021- Equity Shares RSU	Fiscal 2021- ADS-RSU
Weighted average share price (₹) / (\$ ADS)	1,352	18.2	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	16.8	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 equity.

				(Dollars in millions)
Particulars	Three months ended September 30, 2021	Three months ended September 30, 2020	Six months ended September 30, 2021	Six months ended September 30, 2020
Current taxes
Domestic taxes	190	184	385	332
Foreign taxes	78	54	145	80
	268	238	530	412
Deferred taxes
Domestic taxes	14	23	30	48
Foreign taxes	(10)	(6)	(20)	(4)
	4	17	10	44
Income tax expense	272	255	540	456

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

Income tax expense for the three months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of \$ 2 million and \$ 14 million, respectively. Income tax expense for the six months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of \$ 4 million and \$31 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:

(Dollars in millions)
-----------------------

Particulars	Three months ended September 30, 2021	Three months ended September 30, 2020	Six months ended September 30, 2021	Six months ended September 30, 2020
Profit before income taxes	1,006	910	1,979	1,675
Enacted tax rates in India	34.94%	34.94%	34.94%	34.94%
Computed expected tax expense	352	317	692	584
Tax effect due to non-taxable income for Indian tax purposes	(113)	(84)	(203)	(156)
Overseas taxes	32	24	59	46
Tax provision (reversals)	(2)	(14)	(4)	(31)
Effect of differential tax rates	(6)	(6)	(10)	(10)
Effect of exempt non operating income	(1)	(1)	(4)	(2)
Effect of unrecognized deferred tax assets	-	2	-	4
Effect of non-deductible expenses	4	4	9	9
Impact of change in tax rate	(6)	-	(6)	-
Others	12	13	7	12
Income tax expense	272	255	540	456

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

Deferred income tax for the three months ended and six months ended September 30, 2021 and September 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 has applied 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 September 30, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to \$508 million (₹3,771 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 \$684 million (₹5,074 crore) and \$834 million (₹6,095 crore) as at September 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 six months ended September 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.
• Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective July 20, 2021.
• Stater GmbH, a wholly-owned subsidiary of Stater N.V., was incorporated on August 4, 2021.
• Infosys Green Forum, a wholly-owned subsidiary of Infosys Limited, was incorporated on August 31, 2021.
• Infosys Consulting (Shanghai) Co., Ltd., a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective September 01, 2021.
• Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus Australia Pty Ltd, has been liquidated effective September 02, 2021.
• Beringer Commerce Inc. renamed as Blue Acorn iCi Inc.

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 months ended September 30, 2021	Three months ended September 30, 2020	Six months ended September 30, 2021	Six months ended September 30, 2020
Salaries and other employee benefits to whole-time directors and executive officers(1)(2)	5	5	10	9
Commission and other benefits to non-executive/ independent directors	-	-	1	-
Total	5	5	11	9

(1) Total employee stock compensation expense for the three months ended September 30, 2021 and September 30, 2020 includes a charge of \$ 3 million and \$3 million respectively, towards key managerial personnel. For the six months ended September 30, 2021 and September 30, 2020, includes a charge of \$5 million and \$5 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 September 30, 2021 and September 30, 2020

Particulars Financial Services(1) Retail(2) Communi cation(3) Energy, Utilities, resources and Services Manufact uring Hi Tech Life Sciences(4) All Other Segments (5) Total Revenues 1,292 585 495 473 435 339 284 95 3,998 1,061 492 417 408 302 303 225 104 3,312 Identifiable operating expenses 722 284 299 252 255 204 162 77 2,255 546 234 246 209 155 170 112 69 1,741 Allocated expenses 213 98 86 83 82 52 43 29 686 196 83 81 88 58 43 38 29 616 Segment operating income 357 203 110 138 98 83 79 (11) 1,057 319 175 90 111 89 90 75 6 955 Unallocable expenses 116 115 Operating profit 941 840 Other income, net (Refer Note 2.18) 71 76 Finance cost 6 6 Profit before Income taxes 1,006 910 Income tax expense 272 255 Net profit 734 655 Depreciation and amortization 116 115 Non-cash expenses other than depreciation and amortization - 1

(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

41

(Dollars in millions)

Six months ended September 30, 2021 and September 30, 2020

(Dollars in millions)

Particulars	Financial Services (1)	Retail(2)	Communi cation (3)	Energy, Utilities, resources and Services	Manufact uring	Hi Tech	Life Sciences(4)	All Other Segments (5)	Total
Revenues	2,542	1,150	957	930	801	653	540	207	7,780
	2,044	940	834	807	600	575	433	200	6,433
Identifiable operating expenses	1,442	555	581	490	463	391	300	142	4,364
	1,061	444	497	414	325	319	217	130	3,407
Allocated expenses	423	192	170	164	155	101	84	62	1,351
	401	182	166	170	120	87	77	61	1,264
Segment operating income	677	403	206	276	183	161	156	3	2,065
	582	314	171	223	155	169	139	9	1,762
Unallocable expenses									228
									215
Operating profit									1,837
									1,547
Other income, net (Refer Note 2.18)									155
									140
Finance cost									13
									12
Profit before Income taxes									1,979 1,675
Income tax expense									540
									456
Net profit									1,439
									1,219
Depreciation and amortization									228
									215
Non-cash expenses other than depreciation and amortization									-
									2

(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 and six months ended September 30, 2021 and September 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.

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.

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 condensed consolidated statement of comprehensive income.

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

				(Dollars in millions)
Particulars	Three months ended September 30, 2021	Three months ended September 30, 2020	Six months ended September 30, 2021	Six months ended September 30, 2020
Revenue from software services	3,756	3,063	7,261	5,967
Revenue from products and platforms	242	249	519	466
Total revenue from operations	3,998	3,312	7,780	6,433

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 that 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 September 30, 2021 and September 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 802 397 271 244 212 316 203 31 2,476 613 324 218 230 158 286 154 27 2,010 Europe 227 155 117 188 213 7 75 7 989 219 139 94 141 135 6 66 7 807 India 63 3 14 5 3 14 1 1 104 53 2 10 1 2 9 1 22 100 Rest of the world ^{200 30 93 36 7 2 5 56 429} 176 27 95 36 7 2 4 48 395 Total 1,292 585 495 473 435 339 284 95 3,998 1,061 492 417 408 302 303 225 104 3,312 Revenue by offerings Digital 673 357 300 274 250 196 161 32 2,243 501 254 204 194 135 150 93 37 1,568 Core 619 228 195 199 185 143 123 63 1,755 560 238 213 214 167 153 132 67 1,744 Total 1,292 585 495 473 435 339 284 95 3,998 1,061 492 417 408 302 303 225 104 3,312

(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

Six months ended September 30, 2021 and September 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	1,579	774	512	478	407	608	389	62	4,809
	1,190	612	457	456	330	543	292	49	3,929
Europe	450	311	229	369	374	15	141	14	1,903
	420	273	178	277	251	9	131	14	1,553
India	118	7	29	9	4	26	2	20	215
	102	3	17	1	4	19	2	43	191
Rest of the world	395	58	187	74	16	4	8	111	853
	332	52	182	73	15	4	8	94	760
Total	2,542	1,150	957	930	801	653	540	207	7,780
	2,044	940	834	807	600	575	433	200	6,433
Revenue by offerings
Digital	1,326	681	562	525	445	369	298	77	4,283
	953	468	401	368	270	264	168	65	2,957
Core	1,216	469	395	405	356	284	242	130	3,497
	1,091	472	433	439	330	311	265	135	3,476
Total	2,542	1,150	957	930	801	653	540	207	7,780
	2,044	940	834	807	600	575	433	200	6,433

(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
	September 30, 2021	March 31, 2021
Unbilled financial asset (1)	626	489
Unbilled non financial asset (2)	744	622
Total	1,370	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 net profits in the condensed 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	Six months ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Employee benefit costs	1,905	1,603	3,754	3,194
Depreciation and amortization	116	115	228	215
Travelling costs	19	17	35	30
Cost of technical sub-contractors	412	220	745	435
Cost of software packages for own use	47	40	92	78
Third party items bought for service delivery to clients	139	108	267	187
Short term leases	1	1	2	2
Consultancy and professional charges	4	1	7	3
Communication costs	10	11	20	23
Repairs and maintenance	12	18	25	36
Provision for post-sales client support	5	(1)	5	-
Others	5	(8)	4	(7)
Total	2,675	2,125	5,184	4,196

Selling and marketing expenses

				(Dollars in millions)
Particulars		Three months ended	Six months ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Employee benefit costs	145	134	288	271
Travelling costs	2	1	2	1
Branding and marketing	13	13	29	20
Consultancy and professional charges	5	3	11	5
Communication costs	-	-	1	1
Others	2	2	5	7
Total	167	153	336	305

Administrative expenses

(Dollars in millions)

Particulars		Three months ended	Six months ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Employee benefit costs	76	68	149	134
Consultancy and professional charges	52	34	96	66
Repairs and maintenance	27	29	56	60
Power and fuel	4	5	9	9
Communication costs	10	10	19	20
Travelling costs	1	2	3	4
Rates and taxes	9	8	17	15
Short-term leases	1	1	2	3
Insurance charges	5	5	10	9
Commission to non-whole time directors	-	-	1	-
Impairment loss recognized/(reversed) under expected credit loss model	6	8	12	22
Contributions towards Corporate Social Responsibility	16	19	35	35
Others	8	5	14	8
Total	215	194	423	385

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 ("the Rules"), the Company intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary Infosys Green Forum established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.

Other income, net

(Dollars in millions)

Particulars		Three months ended	Six months ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Interest income on financial assets carried at amortized cost	33	42	77	81
Interest income on financial assets carried at fair value through other comprehensive income	21	13	42	25
Dividend income on investments carried at fair value through profit or loss	-	1	-	1
Gain/(loss) on investments carried at fair value through profit or loss	6	1	9	5
Gain/(loss) on investments carried at fair value through other comprehensive income	-	4	-	7
Exchange gains / (losses) on forward and options contracts	18	41	8	47
Exchange gains / (losses) on translation of foreign currency assets and liabilities	(11)	(35)	6	(39)
Others	4	9	13	13
Total	71	76	155	140

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 condensed 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, 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

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 net profit in the consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction.

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 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 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.

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 buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buyback price of ₹1,648.53/- per equity share comprising 1.31% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of ₹9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. In accordance with section 69 of the Companies Act, 2013, as at September 30, 2021, the Company has created 'Capital Redemption Reserve' amounting to \$4 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 September 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:

	Six months ended September 30, 2021		Six months ended September 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 held 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.

The Board of Directors in their meeting held on October 13, 2021 declared an interim dividend of ₹15/- per equity share (approximately \$0.20 per equity share) which would result in a net cash outflow of approximately ₹6,286 crore (\$847 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. 14,840,585 shares and 15,514,732 shares were held by controlled trust, as at September 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 October 13, 2021

Chartered Accountants One International Centre, 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 September 30, 2021, the Condensed Consolidated Statement of Comprehensive Income for the three months and six months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the six 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 September 30, 2021, the consolidated profit and consolidated total comprehensive income for the three months and six months ended on that date, consolidated changes in equity and its consolidated cash flows for the six 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 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 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 the 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.

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: October 13, 2021

Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in Indian Rupee for the three months and six months ended September 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 Interim Condensed Consolidated 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……………………………………………………………………………….	9
2.4 Prepayments and other assets……………………………………………………………………….	12
2.5 Other liabilities………………………………………………………………………………………	13
2.6 Provisions and other contingencies……………………………………………………………………………………………	14
2.7 Property, plant and equipment………………………………………………………………………	15
2.8 Leases……………………………………………………………………………………………	17
2.9 Goodwill and Intangible Assets…………………………………………………………	19
2.10 Business combinations ……………………………………………………………………….	21
2.11 Employees' Stock Option Plans (ESOP)………………………………………………………………………… 22
2.12 Income Taxes…………………………………………………………………………………….	24
2.13 Basic and diluted shares used in computing earnings per equity share…………………………………………………………………………………….	24
2.14 Related party transactions………………………………………………………………………………………………	25
2.15 Segment reporting…………………………………………………………………………………………26
2.16 Revenue from Operations…………………………………………………………………………………28
2.17 Unbilled Revenue………………………………………………………………………………	31
2.18 Break-up of expenses and other income, net…………………………………………………………………………… 2.19 Equity…………………….…………………………………………………………………………	32 35

	(In ₹ crore except equity share data)
Condensed Consolidated Balance Sheet as at	Note	September 30, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	2.1	18,056	24,714
Current investments	2.2	4,983	2,342
Trade receivables		20,121	19,294
Unbilled revenue	2.17	9,413	7,527
Prepayments and other current assets	2.4	7,313	6,668
Derivative financial instruments	2.3	122	188
Total current assets		60,008	60,733
Non-current assets
Property, plant and equipment	2.7	13,422	13,623
Right-of-use assets	2.8	4,599	4,794
Goodwill	2.9	6,122	6,079
Intangible assets		1,895	2,072
Non-current investments	2.2	10,096	11,863
Unbilled revenue	2.17	758	594
Deferred income tax assets	2.12	976	1,098
Income tax assets	2.12	5,796	5,811
Other non-current assets Total non-current assets	2.4	2,438 46,102	1,719 47,653
Total assets		106,110	108,386
LIABILITIES AND EQUITY
Current liabilities
Trade payables		3,176	2,645
Lease liabilities	2.8	788	738
Derivative financial instruments	2.3	44	56
Current income tax liabilities	2.12	2,455	2,146
Unearned revenue		4,394	4,050
Employee benefit obligations		2,236	2,020
Provisions	2.6	862	713
Other current liabilities	2.5	13,733	11,497
Total current liabilities		27,688	23,865
Non-current liabilities
Lease liabilities Deferred income tax liabilities	2.8 2.12	4,356 858	4,587 875
Employee benefit obligations		101	97
Other non-current liabilities	2.5	2,759	2,180
Total liabilities		35,762	31,604
Equity
Share capital - ₹5 par value 480,00,00,000 (480,00,00,000) equity shares authorized, issued and
outstanding 4,19,06,23,841 (424,51,46,114) equity shares fully paid up, net of 1,48,40,585	2.19	2,097	2,124
(1,55,14,732) treasury shares as at September 30, 2021 (March 31, 2021)
Share premium		564	993
Retained earnings		58,078	65,397
Cash flow hedge reserves		21	10
Other reserves		7,470	6,385
Capital redemption reserve		139	111
Other components of equity		1,570	1,331
Total equity attributable to equity holders of the Company		69,939	76,351
Non-controlling interests		409	431
Total equity		70,348	76,782
Total liabilities and equity		106,110	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 October 13, 2021 October 13, 2021

				(In ₹ crore except equity share and per equity share data)
Condensed Consolidated Statement of Comprehensive Income for the		Three months ended September 30,		Six months ended September 30,
	Note	2021	2020	2021	2020
Revenues	2.16	29,602	24,570	57,498	48,234
Cost of sales	2.18	19,806	15,771	38,312	31,473
Gross profit		9,796	8,799	19,186	16,761
Operating expenses
Selling and marketing expenses	2.18	1,235	1,136	2,483	2,283
Administrative expenses	2.18	1,589	1,435	3,128	2,885
Total operating expenses		2,824	2,571	5,611	5,168
Operating profit		6,972	6,228	13,575	11,593
Other income, net	2.18	524	570	1,146	1,046
Finance cost		48	48	98	96
Profit before income taxes		7,448	6,750	14,623	12,543
Income tax expense	2.12	2,020	1,892	3,994	3,412
Net profit		5,428	4,858	10,629	9,131
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		14	7	(19)	154
Equity instruments through other comprehensive income, net		40	(5)	41	(6)
		54	2	22	148
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		6	27	11	21
Exchange differences on translation of foreign operations		(166)	21	124	185
Fair value changes on investments, net		55	(45)	93	9
		(105)	3	228	215
Total other comprehensive income/(loss), net of tax		(51)	5	250	363
Total comprehensive income		5,377	4,863	10,879	9,494
Profit attributable to:
Owners of the Company		5,421	4,845	10,616	9,078
Non-controlling interests		7	13	13	53
		5,428	4,858	10,629	9,131
Total comprehensive income attributable to:
Owners of the Company		5,375	4,847	10,866	9,434
Non-controlling interests		2	16	13	60
		5,377	4,863	10,879	9,494
Earnings per equity share
Equity shares of par value ₹5/- each
Basic (₹)		12.88	11.42	25.11	21.40
Diluted (₹)		12.85	11.40	25.06	21.37
Weighted average equity shares used in computing earnings per	2.13
equity share
Basic		4,210,064,823	4,241,908,471	4,227,694,034	4,241,506,966
Diluted		4,218,293,582	4,248,961,564	4,236,051,581	4,248,434,533

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

Partner Chairman Chief Executive Officer Chief Operating Officer Membership No. 039826 and Managing Director and Whole-time Director

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

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 October 13, 2021 October 13, 2021

(In ₹ crore except equity share data)

Condensed Consolidated Statement of Changes in Equity	Number of Shares(1)	Share capital	Share premium	Retained earnings	Other (2) reserves	Capital redemption reserve	Other components of equity	Cash flow hedge reserve	Total equity attributable to equity holders of the Company	Non controlling interest	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 six months ended September 30, 2020
Net profit	-	-	-	9,078	-	-	-	-	9,078	53	9,131
Remeasurement of the net defined benefit liability/asset, net*	-	-	-	-	-	-	154	-	154	-	154
Fair value changes on derivatives designated as Cash flow hedge, net*	-	-	-	-	-	-	-	21	21	-	21
Exchange differences on translation of foreign operations	-	-	-	-	-	-	178	-	178	7	185
Equity instruments through other comprehensive income, net*	-	-	-	-	-	-	(6)	-	(6)	-	(6)
Fair value changes on investments, net*	-	-	-	-	-	-	9	-	9	-	9
Total comprehensive income for the period	-	-	-	9,078	-	-	335	21	9,434	60	9,494
Shares issued on exercise of employee stock options (Refer to note 2.11)	1,752,826	1	5	-	-	-	-	-	6	-	6
Employee stock compensation expense (Refer to note 2.11)	-	-	134	-	-	-	-	-	134	-	134
Transfer on account of options not exercised	-	-	1	(1)	-	-	-	-	-	-	-
Income tax benefit arising on exercise of stock options	-	-	5	-	-	-	-	-	5	-	5
Transferred to other reserves	-	-	-	(1,463)	1,463	-	-	-	-	-	-
Transferred from other reserves on utilization	-	-	-	561	(561)	-	-	-	-	-	-
Dividends paid to non controlling interest of subsidiary	-	-	-	-	-	-	-	-	-	(20)	(20)
Dividends (including dividend distribution tax)#	-	-	-	(4,029)	-	-	-	-	(4,029)	-	(4,029)
Balance as at September 30, 2020	4,242,506,036	2,123	745	61,652	4,972	111	1,391	6	71,000	434	71,434

(In ₹ crore except equity share data)

Condensed Consolidated Statement of Changes in Equity	Number of Shares(1)	Share capital	Share premium	Retained earnings	Other (2) reserves	Capital redemption reserve	Other components of equity	Cash flow hedge reserve	Total equity attributable to equity holders of the Company	Non controlling interest	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 six months ended September 30, 2021
Net profit	-	-	-	10,616	-	-	-	-	10,616	13	10,629
Remeasurement of the net defined benefit liability/asset*	-	-	-	-	-	-	(19)	-	(19)	-	(19)
Equity instruments through other comprehensive income*	-	-	-	-	-	-	41	-	41	-	41
Fair value changes on derivatives designated as cash flow hedge*	-	-	-	-	-	-	-	11	11	-	11
Exchange differences on translation of foreign operations	-	-	-	-	-	-	124	-	124	-	124
Fair value changes on investments, net*	-	-	-	-	-	-	93	-	93	-	93
Total comprehensive income for the period	-	-	-	10,616	-	-	239	11	10,866	13	10,879
Buyback of equity shares (Refer to note 2.19 )**	(55,807,337)	(28)		(640) (10,425)	-	-	-	-	(11,093)	-	(11,093)
Transaction cost relating to buyback*	-	-	-	(28)	-	-	-	-	(28)	-	(28)
Amount transferred to capital redemption reserve upon buyback	-	-	-	(28)	-	28	-	-	-	-	-
Shares issued on exercise of employee stock options (Refer to note 2.11)	1,285,064	1	8	-	-	-	-	-	9	-	9
Employee stock compensation expense (Refer to note 2.11)	-	-	196	-	-	-	-	-	196	-	196
Income tax benefit arising on exercise of stock options (Refer to note 2.12)	-	-	7	-	-	-	-	-	7	-	7
Transferred to other reserves	-	-	-	(1,496)	1,496	-	-	-	-	-	-
Transferred from other reserves on utilization	-	-	-	411	(411)	-	-	-	-	-	-
Dividends paid to non controlling interest of subsidiary	-	-	-	-	-	-	-	-	-	(35)	(35)
Dividends#	-	-	-	(6,369)	-	-	-	-	(6,369)	-	(6,369)
Balance as at September 30, 2021	4,190,623,841	2,097	564	58,078	7,470	139	1,570	21	69,939	409	70,348

* net of tax

** Including tax on buyback ₹1,893 crore

# net of treasury shares

(1) excludes treasury shares of 14,840,585 as at September 30, 2021, 15,514,732 as at April 1, 2021, 16,905,562 as at September 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.

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

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

A.G.S. Manikantha Company Secretary

4

Condensed Consolidated 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 Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

		(In ₹ crore)
Particulars		Six months ended September 30,
	Note	2021	2020
Operating activities:
Net Profit		10,629	9,131
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.18	1,687	1,611
Income tax expense	2.12	3,994	3,412
Finance cost		98	96
Interest and dividend income		(396)	(273)
Effect of exchange rate changes on assets and liabilities, net		54	(7)
Impairment loss under expected credit loss model		87	159
Stock compensation expense	2.11	209	174
Other adjustments		36	(60)
Changes in working capital
Trade receivables and unbilled revenue		(2,963)	(67)
Prepayments and other assets		(299)	334
Trade payables		349	(477)
Unearned revenue		345	349
Other liabilities and provisions		2,409	424
Cash generated from operations Income taxes paid		16,239 (3,574)	14,806 (2,987)
Net cash generated by operating activities		12,665	11,819
Investing activities:
Expenditure on property, plant and equipment and intangibles		(1,030)	(1,306)
Deposits placed with corporation		(516)	(495)
Redemption of deposits placed with Corporation		343	362
Interest and dividend received		421	258
Payment of contingent consideration pertaining to acquisition of business		(53)	(150)
Escrow and other deposits pertaining to Buyback	2.4	(420)	-
Redemption of escrow and other deposits pertaining to Buyback		420	-
Payments to acquire Investments
- Quoted debt securities		(807)	(5,493)
- Liquid mutual fund units and fixed maturity plan securities		(25,411)	(11,960)
- Certificates of deposit		(498)	-
- Other investments		(13)	(1)
Proceeds on sale of investments
- Certificates of deposit		500	900
- Quoted debt securities		2,635	2,249
- Liquid mutual fund units and fixed maturity plan securities		22,928	11,850
- Other investments		1	22
Other payments		(22)	-
Other receipts		35	25
Net cash (used)/generated in investing activities		(1,487)	(3,739)
Financing activities:
Payment of lease liabilities	2.8	(421)	(351)
Payment of dividends		(6,369)	(4,031)
Payment of dividends to non-controlling interests of subsidiary		(2)	(20)
Other payments		(15)	-
Other receipts
		117	-
Buyback of equity shares including transaction costs and tax on buyback	2.19	(11,125)	-
Shares issued on exercise of employee stock options		9	6
Net cash used in financing activities		(17,806)	(4,396)
Effect of exchange rate changes on cash and cash equivalents		(30)	78
Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period		(6,628)	3,684
Cash and cash equivalents at the end of the period	2.1 2.1	24,714 18,056	18,649 22,411
Supplementary information:
Restricted cash balance	2.1	526	404

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

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

As per our report of even date attached

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

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

5

Overview and Notes to the Interim Condensed 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. 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 October 13, 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 consolidated 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 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 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

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 (Refer to note 2.10).

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 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.

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. (Refer to note 2.9)

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 to 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 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

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 condensed 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 condensed 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 7, 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.

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.

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)
	As at
Particulars	September 30, 2021	March 31, 2021
Cash and bank deposits	14,994	20,069
Deposits with financial institutions	3,062	4,645
Total Cash and cash equivalents	18,056	24,714

Cash and cash equivalents as at September 30, 2021 and March 31, 2021 include restricted cash and bank balances of ₹526 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.

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 the investments are as follows:
Particulars	As at	(In ₹ crore)
	September 30, 2021	March 31, 2021
(i) Current
Amortised Cost
Quoted debt securities	20	-
Fair Value through profit or loss
Liquid mutual fund units	4,042	1,500
Fair Value through other comprehensive income
Quoted Debt Securities	921	842
Total current investments	4,983	2,342
(ii) Non-current
Amortised Cost
Quoted debt securities	2,127	2,152
Fair Value through other comprehensive income
Quoted debt securities	7,635	9,452
Unquoted equity and preference securities	220	167
Fair Value through profit or loss
Unquoted Preference securities	23	11
Unquoted compulsorily convertible debentures	7	7
Others(1)	84	74
Total non-current investments	10,096	11,863
Total investments	15,079	14,205
Investments carried at amortised cost	2,147	2,152
Investments carried at fair value through other comprehensive income	8,776	10,461
Investments carried at fair value through profit or loss	4,156	1,592

Refer to note 2.3 for accounting policies on financial instruments.

Method of fair valuation:			(In ₹ crore)
Class of investment	Method	Fair value as at
		September 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	4,042	1,500
Quoted debt securities- carried at amortized cost	Quoted price and market observable inputs	2,515	2,536
Quoted debt securities- carried at fair value through other comprehensive income	Quoted price and market observable inputs	8,556	10,294
Unquoted equity and preference securities - carried at fair value through other comprehensive income	Discounted cash flows method, Market multiples method, Option pricing model	220	167
Unquoted equity and preference securities - carried at fair value through profit or loss	Discounted cash flows method, Market multiples method, Option pricing model	23	11
Unquoted compulsorily convertible debentures - carried at fair value through profit and loss	Discounted cash flows method	7	7
Others	Discounted cash flows method, Market multiples method, Option pricing model	84	74
Total		15,447	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 carried 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 carried 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 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

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, carried 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 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 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 consolidated 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 September 30, 2021 were as follows:

							(In ₹ crore)
	Financial assets / liabilities at Financial assets / liabilities at Amortised fair value through profit or loss fair value through OCI				Total carrying value	Total fair value
Particulars	cost	Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to note 2.1)	18,056	-	-	-	-	18,056	18,056
Investments (Refer to note 2.2)
Liquid mutual fund units	-	-	4,042	-	-	4,042	4,042
Quoted debt securities	2,147	-	-	-	8,556	10,703	11,071 (1)
Unquoted equity and preference securities	-	-	23	220	-	243	243
Unquoted compulsorily convertible debentures	-	-	7	-	-	7	7
Unquoted investment others	-	-	84	-	-	84	84
Trade receivables	20,121	-	-	-	-	20,121	20,121
Unbilled revenues (Refer to note 2.17)(3)	4,647	-	-	-	-	4,647	4,647
Prepayments and other assets (Refer to note 2.4)	4,104	-	-	-	-	4,104	4,027 (2)
Derivative financial instruments	-	-	82	-	40	122	122
Total	49,075	-	4,238	220	8,596	62,129	62,420
Liabilities:
Trade payables	3,176	-	-	-	-	3,176	3,176
Lease liabilities	5,144	-	-	-	-	5,144	5,144
Derivative financial instruments	-	-	43	-	1	44	44
Financial liability under option arrangements ( Refer to note 2.5)	-	-	695	-	-	695	695
Other liabilities including contingent consideration ( Refer to note 2.5)	12,521	-	117	-	-	12,638	12,638
Total	20,841	-	855	-	1	21,697	21,697

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

(2) Excludes interest accrued on quoted debt securities carried at amortized cost of ₹77 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)
	Amortised	Financial assets/ liabilities at fair		Financial assets/liabilities at fair		Total carrying value	Total fair value
	value through profit or loss value through OCI cost
Particulars		Designated upon initial	Mandatory	Equity instruments designated	Mandatory
		recognition		upon initial recognition
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
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 ( Refer to note 2.5)	-	-	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

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 September 30, 2021:

(In ₹ crore)

Particulars	As at September 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)	4,042	4,042	-	-
Investments in quoted debt securities (Refer to note 2.2)	11,071	9,126	1,945	-
Investments in unquoted equity and preference securities (Refer to note 2.2)	243	-	-	243
Investments in unquoted compulsorily convertible debentures (Refer to note 2.2)	7	-	-	7
Investments in unquoted investments others (Refer to note 2.2)	84	-	-	84
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts	122	-	122	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts	44	-	44	-
Financial liability under option arrangements (Refer to note 2.5)	695	-	-	695
Liability towards contingent consideration (Refer to note 2.5)*	117	-	-	117

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

During the six months ended September 30, 2021, quoted debt securities of ₹1,010 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 ₹1,579 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)
	As at March 31, 2021	Fair value measurement at end of the reporting period using
Particulars Assets Investments in liquid mutual fund units (Refer to note 2.2) Investments in quoted debt securities (Refer to note 2.2) Investments in unquoted equity and preference securities(Refer to note 2.2) Investments in unquoted compulsorily convertible debentures (Refer to note 2.2) Investments in unquoted investments others (Refer to note 2.2) Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts Liabilities Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts Financial liability under option arrangements (Refer to note 2.5) Liability towards contingent consideration (Refer to note 2.5)*		Level 1	Level 2	Level 3
	1,500	1,500	-	-
	12,830	11,374	1,456	-
	178	-	-	178
	7	-	-	7
	74	-	-	74
	188	-	188	-
	56	-	56	-
	693	-	-	693
	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.

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.

2.4 Prepayments and other assets

Prepayments and other assets consist of the following:

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Current
Rental deposits	62	30
Security deposits	6	6
Loans to employees	191	159
Prepaid expenses(1)	1,361	1,160
Interest accrued and not due	496	620
Withholding taxes and others(1)	2,084	2,091
Advance payments to vendors for supply of goods(1)	65	141
Deposit with corporations*	2,167	2,016
Deferred contract cost(1)#	422	65
Net investment in sublease of right of use asset	41	38
Other non financial assets	21	3
Other financial assets(1)	397	339
Total Current prepayment and other assets	7,313	6,668
Non-current
Loans to employees	45	32
Deposit with corporations*	63	42
Rental deposits	187	217
Security deposits	49	49
Withholding taxes and others(1)	682	705
Deferred contract cost(1) #	896	143
Prepaid expenses(1)	88	78
Net investment in sublease of right of use asset	337	350
Defined benefit plan assets(1)	28	19
Other financial assets	63	84
Total Non- current prepayment and other assets	2,438	1,719
Total prepayment and other assets	9,751	8,387
Financial assets in prepayments and other assets	4,104	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.

Includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for ₹733 crore which has been considered as financial liability. This includes ₹667 crore settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction (Refer to note 2.5)

2.5 Other liabilities

Other liabilities comprise the following :

(In ₹ crore)

	As at
Particulars	September 30, 2021	March 31, 2021
Current
Accrued compensation to employees	4,023	4,019
Accrued expenses	6,252	4,475
Withholding taxes and others(1)	2,386	2,170
Retention money	13	13
Liabilities of controlled trusts	211	199
Deferred income - government grants(1)	14	3
Accrued defined benefit plan liability (1)	4	6
Liability towards contingent consideration	64	75
Capital Creditors	236	371
Other non-financial liabilities (1)	4	4
Other financial liabilities#	526	162
Total current other liabilities	13,733	11,497
Non-current
Liability towards contingent consideration	53	86
Accrued expenses	651	569
Withholding taxes and others(1)	370	364
Accrued defined benefit plan liability (1)	311	324
Accrued compensation to employees	8	-
Deferred income - government grants(1)	56	57
Deferred income(1)	13	17
Other financial liabilities#	601	69
Other non-financial liabilities(1)	1	1
Financial liability under option arrangements	695	693
Total non-current other liabilities	2,759	2,180
Total other liabilities	16,492	13,677
Financial liabilities included in other liabilities	13,333	10,731
Financial liability towards contingent consideration on an undiscounted basis	131	181

(1) Non financial liabilities

Deferred contract cost in note 2.4 includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for ₹733 crore which has been considered as financial liability. This includes ₹667 crore settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction.

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

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 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 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:

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Provision for post sales client support and other provisions	862	713
	862	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 condensed consolidated statement of comprehensive income.

As at September 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 ₹614 crore and ₹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-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

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 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 the three months ended September 30, 2021:

							(In ₹ crore)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at July 1, 2021	1,398	10,745	5,018	7,940	3,089	44	28,234
Additions	12	303	132	308	78	-	833
Deletions*	-	-	(5)	(405)	(6)	-	(416)
Translation difference	-	(1)	(3)	(9)	(6)	-	(19)
Gross carrying value as at September 30, 2021	1,410	11,047	5,142	7,834	3,155	44	28,632
Accumulated depreciation as at July 1, 2021	-	(3,780)	(3,699)	(5,844)	(2,237)	(33)	(15,593)
Depreciation	-	(105)	(101)	(261)	(86)	(2)	(555)
Accumulated depreciation on deletions*	-	-	5	404	6	-	415
Translation difference	-	1	-	8	5	-	14
Accumulated depreciation as at September 30, 2021	-	(3,884)	(3,795)	(5,693)	(2,312)	(35)	(15,719)
Capital work-in progress as at July 1, 2021							919
Carrying value as at July 1, 2021	1,398	6,965	1,319	2,096	852	11	13,560
Capital work-in progress as at September 30, 2021							509
Carrying value as at September 30, 2021	1,410	7,163	1,347	2,141	843	9	13,422

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

							(In ₹ crore)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at July 1, 2020	1,385	10,057	4,725	7,019	2,907	45	26,138
Additions	1	14	61	317	57	-	450
Deletions	-	-	(5)	(34)	(6)	(1)	(46)
Translation difference	-	12	2	1	3	-	18
Gross carrying value as at September 30, 2020	1,386	10,083	4,783	7,303	2,961	44	26,560
Accumulated depreciation as at July 1, 2020	-	(3,380)	(3,274)	(5,085)	(1,929)	(30)	(13,698)
Depreciation	-	(96)	(119)	(265)	(89)	(1)	(570)
Accumulated depreciation on deletions	-	-	4	34	6	1	45
Translation difference	-	(1)	(1)	1	(4)	-	(5)
Accumulated depreciation as at September 30, 2020	-	(3,477)	(3,390)	(5,315)	(2,016)	(30)	(14,228)
Capital work-in progress as at July 1, 2020							1,337
Carrying value as at July 1, 2020	1,385	6,677	1,451	1,934	978	15	13,777
Capital work-in progress as at September 30, 2020							1,459
Carrying value as at September 30, 2020	1,386	6,606	1,393	1,988	945	14	13,791

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

							(In ₹ crore)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at April 1, 2021	1,397	10,565	4,963	7,639	3,043	44	27,651
Additions	13	455	186	644	121	-	1,419
Deletions*	-	-	(10)	(457)	(17)	-	(484)
Translation difference	-	27	3	8	8	-	46
Gross carrying value as at September 30, 2021	1,410	11,047	5,142	7,834	3,155	44	28,632
Accumulated depreciation as at April 1, 2021	-	(3,675)	(3,599)	(5,636)	(2,149)	(32)	(15,091)
Depreciation	-	(206)	(203)	(508)	(173)	(3)	(1,093)
Accumulated depreciation on deletions*	-	-	10	456	17	-	483
Translation difference	-	(3)	(3)	(5)	(7)	-	(18)
Accumulated depreciation as at September 30, 2021	-	(3,884)	(3,795)	(5,693)	(2,312)	(35)	(15,719)
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 September 30, 2021							509
Carrying value as at September 30, 2021	1,410	7,163	1,347	2,141	843	9	13,422

*During each of the three months and six months ended September 30, 2021, certain assets which were old and not in use having gross book value of ₹262 crore (net book value: Nil) were retired.

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

							(In ₹ crore)
Particulars	Land	Buildings	Plant and machinery	Computer equipment	Furniture and fixtures	Vehicles	Total
Gross carrying value as at April 1, 2020	1,316	10,016	4,701	6,676	2,887	45	25,641
Additions	70	53	92	663	82	-	960
Deletions	-	-	(12)	(44)	(13)	(1)	(70)
Translation difference	-	14	2	8	5	-	29
Gross carrying value as at September 30, 2020	1,386	10,083	4,783	7,303	2,961	44	26,560
Accumulated depreciation as at April 1, 2020	-	(3,284)	(3,161)	(4,885)	(1,848)	(28)	(13,206)
Depreciation	-	(191)	(239)	(471)	(177)	(3)	(1,081)
Accumulated depreciation on deletions	-	-	11	44	13	1	69
Translation difference	-	(2)	(1)	(3)	(4)	-	(10)
Accumulated depreciation as at September 30, 2020	-	(3,477)	(3,390)	(5,315)	(2,016)	(30)	(14,228)
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 September 30, 2020							1,459
Carrying value as at September 30, 2020	1,386	6,606	1,393	1,988	945	14	13,791

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

The contractual commitments for capital expenditure primarily comprises of commitments for infrastructure facilities and computer equipment's aggregating to ₹987 crore and ₹733 crore as at September 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 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.

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 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 September 30, 2021:

					(In ₹ crore)
Particulars		Category of ROU asset
	Land	Buildings	Vehicles	Computers
Balance as of July 1, 2021	631	3,716	19	194	4,560
Additions*	-	205	-	54	259
Deletions	-	(2)	-	(18)	(20)
Depreciation	(2)	(164)	(3)	(16)	(185)
Translation difference	-	(17)	-	2	(15)
Balance as of September 30, 2021	629	3,738	16	216	4,599

*Net of adjustments on account of modifications

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

					(In ₹ crore)
Particulars			Category of ROU asset		Total
	Land	Buildings	Vehicles	Computers
Balance as of July 1, 2020	625	3,285	20	67	3,997
Additions	7	377	1	2	387
Deletions	-	(32)	-	-	(32)
Depreciation	(2)	(147)	(2)	(4)	(155)
Translation difference	1	(4)	-	1	(2)
Balance as of September 30, 2020	631	3,479	19	66	4,195

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

					(In ₹ crore)
Particulars			Category of ROU asset		Total
	Land	Buildings	Vehicles	Computers
Balance as of April 1, 2021	630	3,984	19	161	4,794
Additions*	-	64	1	100	165
Deletions	-	(6)	-	(18)	(24)
Depreciation	(4)	(319)	(5)	(29)	(357)
Translation difference	3	15	1	2	21
Balance as of September 30, 2021	629	3,738	16	216	4,599

*Net of adjustments on account of modifications

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

					(In ₹ crore)
Particulars			Category of ROU asset		Total
	Land	Buildings	Vehicles	Computers
Balance as of April 1, 2020	626	3,485	15	42	4,168
Additions*	7	360	9	32	408
Deletions	-	(90)	-	-	(90)
Depreciation	(3)	(292)	(5)	(8)	(308)
Translation difference	1	16	-	-	17
Balance as of September 30, 2020	631	3,479	19	66	4,195

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

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

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Current lease liabilities	788	738
Non-current lease liabilities	4,356	4,587
Total	5,144	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

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:

		(In ₹ crore)
	As at
Particulars	September 30,	March 31, 2021
Carrying value at the beginning	2021 6,079	5,286
Goodwill on acquisitions	-	758
Translation differences	43	35
Carrying value at the end	6,122	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.

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 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.

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 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 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

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 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 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.

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 14,840,585 and 15,514,732 shares as at September 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 September 30, 2021 and March 31, 2021.

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

	2019 Plan	2015 Plan
	Six months ended		Six months ended
Particulars		September 30,	September 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

Note: No grants were made during the three months ended September 30,2021 and September 30, 2020.

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 September 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 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 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.

				(in ₹ crore)
		Three months ended
Particulars	September 30,			September 30,
	2021	2020	2021	2020
Granted to:
KMP	17	19	34	36
Employees other than KMP	82	79	175	138
Total (1)	99	98	209	174
(1) Cash settled stock compensation expense included in the above	6	27	13	40

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:

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.

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 equity.

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

				(In ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Current taxes
Domestic taxes	1,408	1,367	2,848	2,485
Foreign taxes	579	396	1,075	599
	1,987	1,763	3,923	3,084
Deferred taxes
Domestic taxes	108	174	222	355
Foreign taxes	(75)	(45)	(151)	(27)
	33	129	71	328
Income tax expense	2,020	1,892	3,994	3,412

Income tax expense for the three months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹20 crore and ₹99 crore respectively. Income tax expense for the six months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹33 crore and ₹230 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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Profit before income taxes	7,448	6,750	14,623	12,543
Enacted tax rates in India	34.94%	34.94%	34.94%	34.94%
Computed expected tax expense	2,603	2,359	5,110	4,383
Tax effect due to non-taxable income for Indian tax purposes	(833)	(622)	(1,499)	(1,169)
Overseas taxes	247	183	446	347
Tax provision (reversals)	(20)	(99)	(33)	(230)
Effect of exempt non-operating income	(8)	(9)	(27)	(18)
Effect of unrecognized deferred tax assets	(4)	9	(4)	26
Effect of differential tax rates	(43)	(46)	(74)	(74)
Effect of non-deductible expenses	28	27	65	65
Impact of change in tax rate	(47)	-	(47)	-
Others	97	90	57	82
Income tax expense	2,020	1,892	3,994	3,412

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

Deferred income tax for the three months and six months ended September 30, 2021 and September 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 has applied 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 September 30, 2021, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ₹3,771 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 ₹5,074 crore and ₹6,095 crore as at September 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 at 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 to 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 six months ended September 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.
• Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective July 20, 2021.
• Stater GmbH, a wholly-owned subsidiary of Stater N.V., was incorporated on August 4, 2021.
• Infosys Green Forum, a wholly-owned subsidiary of Infosys Limited, was incorporated on August 31, 2021.
• Infosys Consulting (Shanghai) Co., Ltd., a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective September 01, 2021.
• Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus Australia Pty Ltd, has been liquidated effective September 02, 2021.
• Beringer Commerce Inc. renamed as Blue Acorn iCi Inc.

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 ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers(1)(2)	36	38	73	71
Commission and other benefits to non-executive/ independent directors	3	2	5	3
Total	39	40	78	74

(1)For the three months ended September 30, 2021 and September 30, 2020, includes a charge of ₹17 crore and ₹19 crore respectively, towards employee stock compensation expense. For the six months ended September 30, 2021 and September 30, 2020, includes a charge of ₹34 crore and ₹36 crore respectively, towards employee stock compensation expense(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.

2.15 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 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.

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 September 30, 2021 and September 30, 2020

									(In ₹ crore)
Particulars	Financial Services(1)		Retail(2) Communicat ion(3)	Energy, Utilities, Resources and Services	Manufacturi ng	Hi Tech	Life Sciences(4)	All other segments(5)	Total
Revenue	9,566	4,330	3,668	3,501	3,219	2,511	2,103	704	29,602
	7,871	3,651	3,093	3,027	2,241	2,244	1,672	771	24,570
Identifiable operating expenses	5,346	2,102	2,213	1,866	1,886	1,507	1,196	571	16,687
	4,055	1,733	1,828	1,553	1,153	1,260	827	512	12,921
Allocated expenses	1,576	725	639	618	609	385	319	213	5,084
	1,456	618	602	649	433	315	280	213	4,566
Segment operating income	2,644	1,503	816	1,017	724	619	588	(80)	7,831
	2,360	1,300	663	825	655	669	565	46	7,083
Unallocable expenses									859
									855
Operating profit									6,972
									6,228
Other income, net (Refer to note 2.18)									524
									570
Finance Cost									48
Profit before income taxes									48 7,448
									6,750
Income tax expense									2,020
									1,892
Net profit									5,428
									4,858
Depreciation and amortization									859
									855
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

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

-

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

Six months ended September 30, 2021 and September 30, 2020

									(In ₹ crore)
Particulars	Financial Services(1)		Retail(2) Communicat ion(3)	Energy, Utilities, Resources and Services	Manufacturi ng	Hi Tech	Life Sciences(4)	All other segments(5)	Total
Revenues	18,783	8,505	7,071	6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234
Identifiable operating expenses	10,659	4,099	4,293	3,620	3,424	2,888	2,213	1,053	32,249
	7,959	3,326	3,730	3,106	2,436	2,388	1,626	979	25,550
Allocated expenses	3,122	1,421	1,255	1,213	1,148	747	622	459	9,987
	3,008	1,368	1,243	1,272	901	651	581	456	9,480
Segment operating income	5,002	2,985	1,523	2,038	1,350	1,186	1,159	19	15,262
	4,361	2,349	1,284	1,676	1,160	1,268	1,039	67	13,204
Unallocable expenses									1,687
									1,611
Operating profit									13,575
									11,593
Other income, net (Refer to note 2.18)									1,146
									1,046
Finance Cost									98
									96
Profit before income taxes									14,623
									12,543
Income tax expense									3,994
									3,412
Net profit									10,629
									9,131
Depreciation and amortization expense									1,687
									1,611
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 and six months ended September 30, 2021 and September 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.

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.

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 and six months ended September 30, 2021 and September 30, 2020 is as follows:

				(In ₹ crore)
Particulars		Three months ended September 30,
	2021	2020	2021	2020
Revenue from software services	27,813	22,728	53,659	44,747
Revenue from products and platforms	1,789	1,842	3,839	3,487
Total revenue from operations	29,602	24,570	57,498	48,234

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.

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

								(In ₹ crore)
Financial Services (1)	Retail(2)	Communicat ion (3)	Energy, Utilities, Resources and	Manufacturing	Hi Tech	Life Sciences(4)	Others (5)	Total
								18,332
								14,916
								7,328
1,622		699	1,043	998	39	493	52	5,979
469				19	101	8	11	770
394		74	4	12	65	5	174	740
1,479				56	13	33	412	3,172
1,308		702	270	53	14	33	352	2,935
9,566				3,219	2,511	2,103	704	29,602
7,871		3,093	3,027	2,241	2,244	1,672	771	24,570
								16,604
								11,624
4,582				1,372	1,058	915	464	12,998
								12,946
9,566				3,219	2,511	2,103	704	29,602
7,871		3,093	3,027	2,241	2,244	1,672	771	24,570
	5,942 4,547 1,676 4,984 3,717 4,154		2,939 2,004 2,403 1,618 1,150 870 1,033 20 107 12 221 687 203 4,330 3,668 3,651 2,645 2,222 1,885 1,512 1,685 1,446 1,766 1,581 4,330 3,668 3,651	Services 1,710 1,437 1,590	1,803 1,568 1,178 1,392 1,576 35 271 3,501 2,025 1,847 997 1,476 1,244 3,501	2,343 2,126 54 1,453 1,111 1,133	1,505 1,141 557 1,188 692 980	228 193 53 240 273 498

Six months ended September 30, 2021 and September 30, 2020

									(In ₹ crore)
Particulars	Financial Services (1)	Retail(2)	Communicat ion (3)	Energy, Utilities, Resources and Services	Manufacturing	Hi Tech	Life Sciences(4)	Others (5)	Total
Revenues by Geography*
North America	11,669	5,725	3,779	3,530	3,009	4,496	2,873	456	35,537
	8,921	4,579	3,433	3,422	2,476	4,071	2,189	365	29,456
Europe	3,327	2,300	1,693	2,727	2,759	106	1,044	109	14,065
	3,158	2,051	1,328	2,079	1,883	70	988	107	11,664
India	871	49	216	67	33	191	16	148	1,591
	762	22	130	8	27	137	12	325	1,423
Rest of the world	2,916	431	1,383	547	121	28	61	818	6,305
	2,487	391	1,366	545	111	29	57	705	5,691
Total	18,783	8,505	7,071	6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234
Revenue by offerings
Digital	9,797	5,038	4,152	3,883	3,291	2,725	2,200	565	31,651
	7,143	3,499	3,007	2,757	2,026	1,978	1,257	489	22,156
Core	8,986	3,467	2,919	2,988	2,631	2,096	1,794	966	25,847
	8,185	3,544	3,250	3,297	2,471	2,329	1,989	1,013	26,078
Total	18,783	8,505	7,071	6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234

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

2.17 Unbilled Revenue

		(In ₹ crore)
Particulars	As at
	September	March
	30, 2021	31, 2021
Unbilled financial asset (1)	4,647	3,572
Unbilled non financial asset (2)	5,524	4,549
Total	10,171	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 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 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 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 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.

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.

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.

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

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.

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.

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)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Employee benefit costs	14,110	11,902	27,747	23,965
Depreciation and amortization	859	855	1,687	1,611
Travelling costs	140	130	258	226
Cost of technical sub-contractors	3,054	1,634	5,508	3,260
Cost of software packages for own use	349	298	679	581
Third party items bought for service delivery to clients	1,027	799	1,973	1,401
Short-term leases	5	6	12	17
Consultancy and professional charges	30	10	53	20
Communication costs	73	82	149	169
Repairs and maintenance	90	137	181	268
Provision for post-sales client support	34	(7)	35	(1)
Others	35	(75)	30	(44)
Total	19,806	15,771	38,312	31,473

Selling and marketing expenses

				(In ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Employee benefit costs	1,070	994	2,129	2,036
Travelling costs	12	4	18	11
Branding and marketing	101	92	214	150
Short-term leases	1	1	2	2
Communication costs	2	3	5	7
Consultancy and professional charges	36	21	82	35
Others	13	21	33	42
Total	1,235	1,136	2,483	2,283

Administrative expenses

				(In ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Employee benefit costs	563	504	1,097	1,003
Consultancy and professional charges	383	255	709	493
Repairs and maintenance	203	213	416	449
Power and fuel	31	37	64	71
Communication costs	71	77	140	148
Travelling costs	11	17	20	30
Impairment loss recognized/(reversed) under expected credit loss model	44	63	87	162
Rates and taxes	65	59	128	114
Insurance charges	34	35	75	65
Short-term leases	9	7	18	20
Commission to non-whole time directors	3	2	5	3
Contribution towards Corporate Social Responsibility	115	140	260	260
Others	57	26	109	67
Total	1,589	1,435	3,128	2,885

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 ("the Rules"), the Company intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary Infosys Green Forum established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.

Other income consists of the following:

				(In ₹ crore)
	Three months ended September 30,		Six months ended September 30,
Particulars	2021	2020	2021	2020
Interest income on financial assets carried at amortized cost	244	315	572	607
Interest income on financial assets carried at fair value through other comprehensive income	155	97	313	186
Dividend income on investments carried at fair value through profit or loss	-	10	-	11
Gain/(loss) on investments carried at fair value through profit or loss	41	9	66	33
Gain/(loss) on investments carried at fair value through other comprehensive income	-	27	-	54
Exchange gains / (losses) on forward and options contracts	133	307	56	354
Exchange gains / (losses) on translation of foreign currency assets and liabilities	(81)	(262)	47	(294)
Others	32	67	92	95
Total	524	570	1,146	1,046

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 condensed 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, 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

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 net profit in the consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction.

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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Final dividend for fiscal 2020	-	-	-	9.50
Final dividend for fiscal 2021	-	-	15.00	-

The Board of Directors in their meeting held 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).

The Board of Directors in their meeting held on October 13, 2021 declared a interim dividend of ₹15/- per equity share which would result in a net cash outflow of approximately ₹6,286 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.

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 buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period, the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buy back price of ₹1,648.53/- per equity share comprising 1.31% of the pre buyback paid-up equity share capital of the Company. The buyback resulted in a cash outflow of ₹9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at September 30, 2021, the Company has created 'Capital Redemption Reserve' of ₹28 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 September 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. 1,48,40,585 and 1,55,14,732 shares were held by controlled trust, as at September 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

A.G.S. Manikantha Company Secretary

Bengaluru October 13, 2021

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

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

Chartered Accountants One International Centre, 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 September 30, 2021, the Condensed Statement of Profit and Loss (including Other Comprehensive Income) for the three months and six months ended on that date, the Condensed Statement of Changes in Equity and the Condensed Statement of Cash Flows for the six 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 September 30, 2021, the profit and total comprehensive income for the three months and six months ended on that date, changes in equity and its cash flows for the six 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.

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: October 13, 2021

Condensed Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the three months and six months ended September 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 Interim Condensed 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 Interim Condensed Financial Statements
2.1 Property, plant and equipment……………………………………………………………………………………………………………	9
2.2 Goodwill and intangible assets…………………………………………………………………………………………	11
2.3 Leases……………………………………………………………………………………………………………………….12
2.4 Investments……………………………………………………………………………………………………………… 14
2.5 Loans………………………………………………………………………………………………………………………16
2.6 Other financial assets…………………………………………………………………………………………………………. 16
2.7 Trade Receivables ………………………………………………………………………………………………………….16
2.8 Cash and cash equivalents…………………………………………………………………………………………………………. 17
2.9 Other assets………………………………………………………………………………………………………………	17
2.10 Financial instruments…………………………………………………………………………………………………………. 18
2.11 Equity……………………………………………………………………………………………………………………21
2.12 Other financial liabilities…………………………………………………………………………………………………………. 24
2.13 Trade payables………………………………………………………………………………………………………….	24
2.14 Other liabilities…………………………………………………………………………………………………………. 24
2.15 Provisions………………………………………………………………………………………………………………. 25
2.16 Income taxes……………………………………………………………………………………………………………. 25
2.17 Revenue from operations…………………………………………………………………………………………………………. 26
2.18 Other income, net………………………………………………………………………………………………………….28
2.19 Expenses………………………………………………………………………………………………………………	28
2.20 Basic and diluted shares used in computing earnings per equity share………………………………………………………………………………………………………….	30
2.21 Contingent liabilities and commitments………………………………………………………………………………………………………….	30
2.22 Related party transactions…………………………………………………………………………………………………………. 31
2.23 Segment Reporting…………………………………………………………………………………………………………. 31

			(In ₹ crore)
Condensed Balance Sheet as at	Note No.	September 30, 2021	March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment	2.1	11,238	10,930
Right-of-use assets	2.3	3,306	3,435
Capital work-in-progress		347	906
Goodwill		167	167
Other intangible assets		49	67
Financial assets
Investments	2.4	19,423	22,118
Loans	2.5	44	30
Other financial assets	2.6	581	613
Deferred tax assets (net)		823	955
Income tax assets (net)		5,325	5,287
Other non-current assets	2.9	1,305	1,149
Total non - current assets		42,608	45,657
Current assets
Financial assets
Investments	2.4	3,873	2,037
Trade receivables	2.7	17,361	16,394
Cash and cash equivalents	2.8	12,396	17,612
Loans	2.5	163	229
Other financial assets	2.6	5,533	5,226
Other current assets	2.9	7,453	6,784
Total current assets		46,779	48,282
Total assets		89,387	93,939
EQUITY AND LIABILITIES
Equity
Equity share capital	2.11	2,102	2,130
Other equity		62,431	69,401
Total equity		64,533	71,531
LIABILITIES
Non-current liabilities
Financial liabilities
Lease liabilities	2.3	3,198	3,367
Other financial liabilities	2.12	363	259
Deferred tax liabilities (net)		516	511
Other non-current liabilities	2.14	634	649
Total non - current liabilities		4,711	4,786
Current liabilities
Financial liabilities
Lease liabilities	2.3	520	487
Trade payables	2.13
Total outstanding dues of micro enterprises and small enterprises		-	-
Total outstanding dues of creditors other than micro enterprises and small enterprises		1,907	1,562
Other financial liabilities Other current liabilities	2.12 2.14	9,581	8,359
Provisions	2.15	5,147 818	4,816 661
Income tax liabilities (net)		2,170	1,737
Total current liabilities		20,143	17,622
Total equity and liabilities		89,387	93,939

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

Partner Chairman Chief Executive Officer Chief Operating Officer

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

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

Mumbai Bengaluru

A.G.S. Manikantha Company Secretary

October 13, 2021 October 13, 2021

				(In ₹ crore except equity share and per equity share data)
Condensed Statement of Profit and Loss for the	Note No.	Three months ended September 30,		Six months ended September 30,
		2021	2020	2021	2020
Revenue from operations	2.17	25,462	21,046	49,176	41,372
Other income, net	2.18	1,052	582	1,622	1,060
Total income		26,514	21,628	50,798	42,432
Expenses
Employee benefit expenses	2.19	12,734	11,053	24,925	22,275
Cost of technical sub-contractors		3,934	2,125	7,251	4,220
Travel expenses		143	136	258	228
Cost of software packages and others	2.19	736	548	1,264	1,029
Communication expenses		107	121	210	235
Consultancy and professional charges		365	225	675	418
Depreciation and amortization expense		601	608	1,178	1,154
Finance cost		32	31	64	62
Other expenses	2.19	559	618	1,177	1,269
Total expenses		19,211	15,465	37,002	30,890
Profit before tax		7,303	6,163	13,796	11,542
Tax expense:
Current tax	2.16	1,805	1,526	3,502	2,752
Deferred tax	2.16	35	140	108	285
Profit for the period		5,463	4,497	10,186	8,505
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		10	6	(22)	162
Equity instruments through other comprehensive income, net		39	(5)	41	(5)
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		6	27	11	21
Fair value changes on investments, net	2.4	52	(45)	90	4
Total other comprehensive income/ (loss), net of tax		107	(17)	120	182
Total comprehensive income for the period		5,570	4,480	10,306	8,687
Earnings per equity share
Equity shares of par value ₹5/- each
Basic (₹)		12.93	10.56	24.01	19.97
Diluted (₹)		12.92	10.55	23.98	19.96
Weighted average equity shares used in computing earnings per equity share
Basic	2.20	4,22,50,67,582	4,25,93,28,154	4,24,28,49,248	4,25,91,94,980
Diluted	2.20	4,22,97,66,160	4,26,19,11,389	4,24,75,94,685	4,26,16,77,462

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

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 October 13, 2021 October 13, 2021

Condensed Statement of Changes in Equity

													(In ₹ crore)
Particulars								Other Equity
						Reserves & Surplus				Other comprehensive income
	Equity		Capital reserve	Capital	Securities	Retained	General	Share	Special	Equity Instruments	Effective	Other items of	Total equity attributable to equity
	Share	Capital	Other	redemption	Premium	earnings	reserve	Options	Economic Zone	through other	portion of	other	holders of the
		Capital	reserve	(2) reserves	reserve				Outstanding Account	Re-investment (1) reserve	comprehensive income	Cash flow hedges	comprehensive income / (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 six months ended September 30, 2020
Profit for the period	-	-	-	-	-	8,505	-	-	-	-	-	-	8,505
Remeasurement of the net defined benefit liability/asset, net*	-	-	-	-	-	-	-	-	-	-	-	162	162
Equity instruments through other comprehensive income, net*	-	-	-	-	-	-	-	-	-	(5)	-	-	(5)
Fair value changes on derivatives designated as cash flow hedge, net*	-	-	-	-	-	-	-	-	-	-	21	-	21
Fair value changes on investments, net*	-	-	-	-	-	-	-	-	-	-	-	4	4
Total comprehensive income for the period	-	-	-	-	-	8,505	-	-	-	(5)	21	166	8,687
Transfer to general reserve	-	-	-	-	-	(1,554)	1,554	-	-	-	-	-	-
Transferred to Special Economic Zone Re-investment reserve	-	-	-	-	-	(1,412)	-	-	1,412	-	-	-	-
Transferred from Special Economic Zone Re-investment reserve on utilization	-	-	-	-	-	530	-	-	(530)	-	-	-	-
Transfer on account of exercise of stock options (Refer to note 2.11)	-	-	-	-	100	-	-	(100)	-	-	-	-	-
Transfer on account of options not exercised	-	-	-	-	-	-	1		(1) -	-	-	-	-
Shares issued on exercise of employee stock options(Refer to note 2.11)	-	-	-	-	5	-	-	-	-	-	-	-	5
Share based payment to employees (Refer to note 2.11)	-	-	-	-	-	-	-	134	-	-	-	-	134
Income tax benefit arising on exercise of stock options	-	-	-	-	5	-	-	-	-	-	-	-	5
Reserves on common controlled transactions	-	-	(176)	-	-	-	-	-	-	-	-	-	(176)
Dividends	-	-	-	-	-	(4,046)	-	-	-	-	-	-	(4,046)
Balance as at September 30, 2020	2,129	54	2,906	111	378	54,442	1,661	330	4,789	44	6	(7)	66,843

Condensed Statement of Changes in Equity (In ₹ crore)

Particulars

Particulars								Other Equity
						Reserves & Surplus				Other comprehensive income
	Equity Share		Capital reserve	Capital redemption	Securities Premium	Retained earnings	General reserve	Share Options	Special Economic Zone	Equity Instruments through other	Effective portion of	Other items of other	Total equity attributable to equity
	Capital	Capital reserve	Other (2) reserves	reserve				Outstanding Account	Re-investment (1) reserve	comprehensive income	Cash flow hedges	comprehensive income / (loss)	holders of the Company
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 six months ended September 30, 2021
Profit for the period	-	-	-	-	-	10,186	-	-	-	-	-	-	10,186
Remeasurement of the net defined benefit liability/asset, net*	-	-	-	-	-	-	-	-	-	-	-	(22)	(22)
Equity instruments through other comprehensive income, net*	-	-	-	-	-	-	-	-	-	41	-	-	41
Fair value changes on derivatives designated as cash flow hedge, net*	-	-	-	-	-	-	-	-	-	-	11	-	11
Fair value changes on investments, net*	-	-	-	-	-	-	-	-	-	-	-	90	90
Total comprehensive income for the period	-	-	-	-	-	10,186	-	-	-	41	11	68	10,306
Buyback of equity shares (Refer to Note 2.11) **	(28)	-	-	-	(640)		(8,822) (1,603)	-	-	-	-	-	(11,093)
Transaction cost relating to buyback*	-	-	-	-	-	-	(28)	-	-	-	-	-	(28)
Amount transferred to capital redemption reserve upon buyback	-	-	-	28	-	-	(28)	-	-	-	-	-	-
Transferred to Special Economic Zone Re-investment reserve	-	-	-	-	-	(1,391)	-	-	1,391	-	-	-	-
Transferred from Special Economic Zone Re-investment reserve on utilization	-	-	-	-	-	350	-	-	(350)	-	-	-	-
Transfer on account of exercise of stock options (Refer to note 2.11)	-	-	-	-	69	-	-	(69)	-	-	-	-	-
Shares issued on exercise of employee stock options (Refer to note 2.11)	-	-	-	-	6	-	-	-	-	-	-	-	6
Employee stock compensation expense (Refer to note 2.11)	-	-	-	-	-	-	-	196	-	-	-	-	196
Income tax benefit arising on exercise of stock options	-	-	-	-	3	-	-	4	-	-	-	-	7
Dividends	-	-	-	-	-	(6,392)	-	-	-	-	-	-	(6,392)
Balance as at September 30, 2021	2,102	54	2,906	139	19	51,449	4	503	7,185	210	21	(59)	64,533

*net of tax

** Including tax on buyback of ₹1,893 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

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

Partner Chairman Chief Executive Officer Chief Operating Officer

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

A.G.S. Manikantha Company Secretary

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.	Six months ended September 30,
		2021	2020
Cash flow from operating activities:
Profit for the period		10,186	8,505
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation and amortization	2.1 & 2.2 & 2.3	1,178	1,154
Income tax expense	2.16	3,610	3,037
Impairment loss recognized / (reversed) under expected credit loss model		66	123
Finance cost		64	62
Interest and dividend income		(1,347)	(734)
Stock compensation expense		185	154
Other adjustments		33	2
Exchange differences on translation of assets and liabilities, net		46	(20)
Changes in assets and liabilities
Trade receivables and unbilled revenue		(2,337)	(268)
Loans, other financial assets and other assets		190	457
Trade payables		323	(209)
Other financial liabilities, other liabilities and provisions		1,745	184
Cash generated from operations		13,942	12,447
Income taxes paid		(3,092)	(2,692)
Net cash generated by operating activities		10,850	9,755
Cash flow from investing activities:
Expenditure on property, plant and equipment		(793)	(1,105)
Deposits placed with corporation		(409)	(425)
Redemption of deposits placed with Corporation		275	295
Loan given to subsidiaries		-	(76)
Loan repaid by subsidiaries		73	267
Proceeds from redemption of debentures		536	327
Investment in subsidiaries		(126)	(215)
Payment towards business transfer		-	(66)
Payment of contingent consideration pertaining to acquisition		-	(122)
Escrow and other deposits pertaining to Buyback Redemption of Escrow and other deposits pertaining to Buyback		(420)	-
		420	-
Other receipts		25	25
Payments to acquire investments Preference, equity securities and others
Liquid mutual fund units and fixed maturity plan securities		(3) (22,370)	(1) (10,499)
Certificates of deposit		(498)	-
Government Securities		(83)	(4,664)
Non Convertible debentures		-	(746)
Proceeds on sale of investments Liquid mutual fund units and fixed maturity plan securities
Non-convertible debentures		20,446	10,541
Certificates of deposit		1,299	535
Government Securities		500 1,336	900 1,529
Interest received		906	673
Dividend received from subsidiary		592	-
Net cash (used in) / from investing activities		1,706	(2,827)

Cash flow from financing activities:
Payment of lease liabilities	2.3	(286)	(210)
Buyback of equity shares including transaction costs and tax on buyback		(11,125)	-
Other receipts		62	-
Shares issued on exercise of employee stock options		6	5
Payment of dividends		(6,392)	(4,048)
Net cash used in financing activities		(17,735)	(4,253)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(37)	10
Net increase / (decrease) in cash and cash equivalents		(5,179)	2,675
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		12,396	16,247
Supplementary information:
Restricted cash balance	2.8	153	99

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

October 13, 2021 October 13, 2021

Overview and Notes to the Interim Condensed Standalone 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.

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 October 13, 2021.

1.2 Basis of preparation of financial statements

These interim condensed standalone financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, 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 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.

As the quarter and year to date figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year to date figures reported in this statement.

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 standalone 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 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 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 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 uncompleted 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 to note 2.16 and note 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 to note 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 to note 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

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 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 September 30, 2021 are as follows:

									(In ₹ crore)
Particulars	Land Freehold	Buildings(1)(2)	Plant and machinery(2)	Office Equipment(2)	Computer equipment(2)	Furniture and fixtures(2)	Leasehold Improvements	Vehicles	Total
Gross carrying value as at July 1, 2021	1,398	9,698	3,164	1,211	6,756	1,964	815	44	25,050
Additions	12	303	108	19	223	73	7	-	745
Deletions*	-	-	(1)	(3)	(351)	(5)	-	-	(360)
Gross carrying value as at September 30, 2021	1,410	10,001	3,271	1,227	6,628	2,032	822	44	25,435
Accumulated depreciation as at July 1, 2021	-	(3,551)	(2,652)	(918)	(5,030)	(1,479)	(416)		(33) (14,079)
Depreciation	-	(93)	(54)	(27)	(212)	(49)	(39)	(2)	(476)
Accumulated depreciation on deletions*	-	-	1	2	351	4	-	-	358
Accumulated depreciation as at September 30, 2021	-	(3,644)	(2,705)	(943)	(4,891)	(1,524)	(455)		(35) (14,197)
Carrying value as at July 1, 2021	1,398	6,147	512	293	1,726	485	399	11	10,971
Carrying value as at September 30, 2021	1,410	6,357	566	284	1,737	508	367	9	11,238

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

									(In ₹ crore)
Particulars	Land- Freehold	Buildings(1)(2)	Plant and machinery(2)	Office Equipment(2)	Computer equipment(2)	Furniture and fixtures(2)	Leasehold Improvements	Vehicles	Total
Gross carrying value as at July 1, 2020	1,385	9,077	3,050	1,103	5,989	1,885	663	43	23,195
Additions	1	11	12	17	280	6	78	-	405
Additions through Business transfer	-	-	-	-	6	-	2	-	8
Deletions	-	-	(1)	(1)	(27)	(3)	(3)	-	(35)
Gross carrying value as at September 30, 2020	1,386	9,088	3,061	1,119	6,248	1,888	740	43	23,573
Accumulated depreciation as at July 1, 2020	-	(3,200)	(2,124)	(814)	(4,362)	(1,296)	(272)		(28) (12,096)
Depreciation	-	(86)	(70)	(28)	(229)	(52)	(34)	(1)	(500)
Accumulated depreciation on deletions	-	-	1	1	27	2	3	-	34
Accumulated depreciation as at September 30,	-	(3,286)	(2,193)	(841)	(4,564)	(1,346)	(303)		(29) (12,562)
2020
Carrying value as at July 1, 2020	1,385	5,877	926	289	1,627	589	391	15	11,099
Carrying value as at September 30, 2020	1,386	5,802	868	278	1,684	542	437	14	11,011

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

									(In ₹ crore)
Particulars	Land Freehold	Buildings(1)(2)	Plant and machinery(2)	Office Equipment(2)	Computer equipment(2)	Furniture and fixtures(2)	Leasehold Improvements	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	13	455	132	36	491	86	34	-	1,247
Deletions*	-	-	(2)	(4)	(393)	(6)	-	-	(405)
Gross carrying value as at September 30, 2021	1,410	10,001	3,271	1,227	6,628	2,032	822	44	25,435
Accumulated depreciation as at April 1, 2021	-	(3,460)	(2,600)	(891)	(4,870)	(1,434)	(376)		(32) (13,663)
Depreciation	-	(184)	(107)	(55)	(414)	(95)	(79)	(3)	(937)
Accumulated depreciation on deletions*	-	-	2	3	393	5	-	-	403
Accumulated depreciation as at September 30, 2021	-	(3,644)	(2,705)	(943)	(4,891)	(1,524)	(455)		(35) (14,197)
Carrying value as at April 1, 2021	1,397	6,086	541	304	1,660	518	412	12	10,930
Carrying value as at September 30, 2021	1,410	6,357	566	284	1,737	508	367	9	11,238

*During each of the three months and six months ended September 30, 2021, certain assets which were old and not in use having gross book value of ₹238 crore (net book value: Nil) were retired.

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

(In ₹ crore)

Particulars	Land Freehold	Buildings(1)(2)	Plant and machinery(2)	Office Equipment(2)	Computer equipment(2)	Furniture and fixtures(2)	Leasehold Improvements	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	70	50	26	28	585	17	80	-	856
Additions through Business transfer	-	-	-	-	6	-	2	-	8
Deletions	-	-	(3)	(3)	(33)	(4)	(11)	-	(54)
Gross carrying value as at September 30, 2020	1,386	9,088	3,061	1,119	6,248	1,888	740	43	23,573
Accumulated depreciation as at April 1, 2020	-	(3,114)	(2,053)	(787)	(4,197)	(1,246)	(248)		(26) (11,671)
Depreciation	-	(172)	(142)	(57)	(400)	(103)	(66)	(3)	(943)
Accumulated depreciation on deletions	-	-	2	3	33	3	11	-	52
Accumulated depreciation as at September 30, 2020	-	(3,286)	(2,193)	(841)	(4,564)	(1,346)	(303)		(29) (12,562)
Carrying value as at April 1, 2020	1,316	5,924	985	307	1,493	629	421	17	11,092
Carrying value as at September 30, 2020	1,386	5,802	868	278	1,684	542	437	14	11,011

(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
	September 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.

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.

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.

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.

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 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 September 30, 2021:

				(In ₹ crore)
Particulars	Category of ROU asset	Total
	Land	Buildings	Computers
Balance as at July 1, 2021	555	2,556	106	3,217
Additions*	-	205	1	206
Deletion	-	-	-	-
Depreciation	(1)	(109)	(7)	(117)
Balance as at September 30, 2021	554	2,652	100	3,306

* Net of adjustments on account of modifications

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

				(In ₹ crore)
Particulars		Category of ROU asset		Total
	Land	Buildings	Computers
Balance as at July 1, 2020	553	2,045	67	2,665
Additions	7	356	2	365
Addition through business transfer	-	8	-	8
Deletion	-	(11)	-	(11)
Depreciation	(1)	(93)	(3)	(97)
Balance as at September 30, 2020	559	2,305	66	2,930

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

				(In ₹ crore)
Particulars	Category of ROU asset			Total
	Land	Buildings	Computers
Balance as at April 1, 2021	556	2,766	113	3,435
Additions*	-	93	1	94
Deletion	-	-	-	-
Depreciation	(2)	(207)	(14)	(223)
Balance as at September 30, 2021	554	2,652	100	3,306
* Net of adjustments on account of modifications

Following are the changes in the carrying value of right of use assets for the six months ended September 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	7	316	32	355
Additions through business transfer	-	8	-	8
Deletions	-	(46)	-	(46)
Depreciation	(2)	(182)	(8)	(192)
Balance as at September 30, 2020	559	2,305	66	2,930

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 September 30, 2021 and March 31, 2021:

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Current lease liabilities	520	487
Non-current lease liabilities	3,198	3,367
Total	3,718	3,854

2.4 INVESTMENTS

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Non-current investments Equity instruments of subsidiaries	9,059	8,933
Debentures of subsidiary	-	536
Redeemable Preference shares of subsidiary	1,318	1,318
Preference securities and equity instruments	220	167
Compulsorily convertible debentures	7	7
Others	44	42
Tax free bonds	2,106	2,131
Government bonds	13	13
Non-convertible debentures	2,613	3,669
Government Securities	4,043	5,302
Total non-current investments	19,423	22,118
Current investments
Liquid mutual fund units	3,302	1,326
Tax free bonds Government Securities	20 52	- -
Non-convertible debentures	499	711
Total current investments	3,873	2,037
Total carrying value	23,296	24,155
Particulars	(In ₹ crore, except as otherwise stated) As at
	September 30, 2021	March 31, 2021
Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries Infosys BPM Limited
3,38,23,444 (3,38,23,444) equity shares of ₹10/- each, fully paid up	660	660
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) AB	76	76
1,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologies (Shanghai) Company Limited	1,010	900
Infosys Public Services, Inc. 3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid	99	99
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 up
Infosys Nova Holdings LLC (1)	2,637	2,637
Infosys Consulting Pte Ltd 1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid	10	10
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 up Infosys 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
Infosys Green Forum	1	-
10,00,000 (NIL) shares `10 per share, fully paid up
Infosys Automotive and Mobility GmbH	15	-
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
	10,377	10,251

Investment carried at amortized cost
Investment in debentures of subsidiary
EdgeVerve Systems Limited
Nil (5,36,00,000) Unsecured redeemable, non-convertible debentures of ₹ 100/- each fully paid up	-	536
Investments carried at fair value through profit or loss	-	536
Compulsorily convertible debentures	7	7
Others (2)	44	42
	51	49
Investment carried at fair value through other comprehensive income
Preference securities Equity instruments	218 2	165 2
	220	167
Quoted
Investments carried at amortized cost
Tax free bonds	2,106	2,131
Government bonds	13 2,119	13 2,144
Investments carried at fair value through other comprehensive income
Non-convertible debentures Government Securities	2,613 4,043	3,669 5,302
	6,656	8,971
Total non-current investments	19,423	22,118
Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units	3,302 3,302	1,326 1,326
Quoted
Investments carried at amortized cost Tax free bonds	20	-
	20	-
Investments carried at fair value through other comprehensive income
Government Securities	52	-
Non-convertible debentures	499	711
	551	711
Total current investments	3,873	2,037
Total investments	23,296	24,155
Aggregate amount of quoted investments	9,346	11,826
Market value of quoted investments (including interest accrued), current	572	713
Market value of quoted investments (including interest accrued), non current	9,145	11,507
Aggregate amount of unquoted investments	13,950	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	10,377	10,251
Investments carried at amortized cost	2,139	2,680
Investments carried at fair value through other comprehensive income	7,427	9,849
Investments carried at fair value through profit or loss	3,353	1,375
(2) Uncalled capital commitments outstanding as of September 30, 2021 and March 31, 2021 was ₹8 crore and ₹10 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
		September 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	3,302	1,326
Tax free bonds and government bonds	Quoted price and market observable inputs	2,507	2,527
Non-convertible debentures	Quoted price and market observable inputs	3,112	4,380
Government Securities	Quoted price	4,095	5,302
Unquoted equity and preference securities	Discounted cash flows method, Market multiples method, Option pricing model	220	167
Compulsorily convertible debentures	Discounted cash flows method	7	7
Others	Discounted cash flows method, Market multiples method, Option pricing model	44	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
	September 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	27	23
	71	53
Less: Allowance for doubtful loans to employees	27	23
Total non - current loans	44	30
Current
Unsecured, considered good
Loans to subsidiaries	-	96
Other Loans
Loans to employees	163	133
Total current loans	163	229
Total Loans	207	259
2.6 OTHER FINANCIAL ASSETS		(In ₹ crore)

Particulars	As at
	September 30, 2021	March 31, 2021
Non-current
Security deposits (1)	44	45
Net investment in Sublease of right of use asset (1)	334	348
Rental deposits (1)	134	164
Unbilled revenues (1)(5)#	69	11
Others (1)	-	45
Total non-current other financial assets	581	613
Current
Security deposits (1)	1	1
Rental deposits (1)	36	10
Restricted deposits (1)*	1,960	1,826
Unbilled revenues (1)(5)#	2,475	2,139
Interest accrued but not due (1)	443	553
Foreign currency forward and options contracts (2)(3)	117	178
Net investment in Sublease of right of use asset (1)	39	37
Others (1)(4)	462	482
Total current other financial assets	5,533	5,226
Total other financial assets	6,114	5,839
(1) Financial assets carried at amortized cost	5,997	5,661
(2) Financial assets carried at fair value through other comprehensive income	40	25
(3) Financial assets carried at fair value through Profit or Loss	77	153
(4) Includes dues from subsidiaries	139	182
(5) Includes dues from subsidiaries	76	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
	September 30, 2021	March 31, 2021
Current
Unsecured
Considered good(2)	17,361	16,394
Considered doubtful	565	543
	17,926	16,937
Less: Allowances for credit losses	565	543
Total trade receivables(1)	17,361	16,394
	-	-
(2) Includes dues from subsidiaries	232	203
(1) Includes dues from companies where directors are interested

2.8 CASH AND CASH EQUIVALENTS

(In ₹ crore)

Particulars	As at
	September 30, 2021	March 31, 2021
Balances with banks
In current and deposit accounts	9,926	13,792
Cash on hand	-	-
Others
Deposits with financial institutions	2,470	3,820
Total Cash and cash equivalents	12,396	17,612
Balances with banks in unpaid dividend accounts	33	33
Deposit with more than 12 months maturity	8,247	11,948
Balances with banks held as margin money deposits against guarantees	70	71

Cash and cash equivalents as at September 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
	September 30, 2021	March 31, 2021
Non-current
Capital advances	126	141
Advances other than capital advance
Others
Prepaid expenses	67	64
Defined benefit assets	10	9
Deferred contract cost(3)	251	73
Unbilled revenues(2)	186	175
Withholding taxes and others	665	687
Total non-current other assets	1,305	1,149
Current
Advances other than capital advance
Payment to vendors for supply of goods	49	131
Others
Prepaid expenses (1)	872	874
Unbilled revenues(2)	4,807	3,904
Deferred contract cost(3)	75	40
Withholding taxes and others	1,648	1,832
Other receivables	2	3
Total current other assets	7,453	6,784
Total other assets	8,758	7,933
(1) Includes dues from subsidiaries	219	237

(2) Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

(3) Includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability. (Refer to note 2.12)

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

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 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.

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.

2.10.5 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 recognized 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 September 30, 2021 are as follows:

Particulars	Amortized	Financial assets/ liabilities at		Financial assets/liabilities at fair value			(In ₹ crore) Total carrying Total fair value
	cost	fair value through profit or		through OCI		value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to note 2.8)	12,396	-	-	-	-	12,396	12,396
Investments (Refer to note2.4)
Preference securities, Equity instruments and others	-	-	44	220	-	264	264
Compulsorily convertible debentures	-	-	7	-	-	7	7
Tax free bonds and government bonds	2,139	-	-	-	-	2,139	2,507 (1)
Liquid mutual fund units	-	-	3,302	-	-	3,302	3,302
Non convertible debentures	-	-	-	-	3,112	3,112	3,112
Government Securities	-	-	-	-	4,095	4,095	4,095
Trade receivables (Refer to note 2.7)	17,361	-	-	-	-	17,361	17,361
Loans (Refer to note 2.5)	207	-	-	-	-	207	207
Other financial assets (Refer to note 2.6) (3)	5,997	-	77	-	40	6,114	6,037 (2)
Total	38,100	-	3,430	220	7,247	48,997	49,288
Liabilities:
Trade payables (Refer to note 2.13)	1,907	-	-	-	-	1,907	1,907
Lease liabilities (Refer to note 2.3)	3,718	-	-	-	-	3,718	3,718
Other financial liabilities (Refer to note 2.12)	8,005	-	14	-	1	8,020	8,020
Total	13,630	-	14	-	1	13,645	13,645

(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 ₹77 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	Amortized	Financial assets/ liabilities at		Financial assets/liabilities at fair value		Total carrying	Total fair value
	cost	fair value through profit or		through OCI		value
		loss Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to note 2.8)	17,612	-	-	-	-	17,612	17,612
Investments (Refer to note 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 to note 2.7)	16,394	-	-	-	-	16,394	16,394
Loans (Refer to note 2.5)	259	-	-	-	-	259	259
Other financial assets (Refer to note 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 to note 2.13)	1,562	-	-	-	-	1,562	1,562
Lease Liabilities (Refer to note 2.3)	3,854	-	-	-	-	3,854	3,854
Other financial liabilities (Refer to note 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 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 fair value hierarchy of assets and liabilities as at September 30, 2021 is as follows:

				(In ₹ crore)
	As at September 30,	Fair value measurement at end of the
Particulars	2021		reporting period using
		Level 1	Level 2	Level 3
Assets
Investments in tax free bonds (Refer to note 2.4)	2,493	2,212	281	-
Investments in government bonds (Refer to note 2.4)	14	14	-	-
Investments in liquid mutual fund units (Refer to note 2.4)	3,302	3,302	-	-
Investments in non convertible debentures (Refer to note 2.4)	3,112	1,670	1,442	-
Investments in government securities (Refer to note 2.4)	4,095	4,090	5	-
Investments in equity instruments (Refer to note 2.4)	2	-	-	2
Investments in preference securities (Refer to note 2.4)	218	-	-	218
Investments in compulsorily convertible debentures (Refer to note 2.4)	7	-	-	7
Other investments (Refer to note 2.4)	44	-	-	44
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to note 2.6)	117	-	117	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer to note 2.12)	15	-	15	-

During the six months ended September 30, 2021, tax free bonds and non-convertible debentures of ₹1,010 crore were transferred from Level 2 to Level 1 of fair value hierarchy since these were valued based on quoted price. Further non-convertible debentures of ₹1,442 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 reporting	period using
		Level 1	Level 2	Level 3
Assets
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)	14	14	-	-
Investments in liquid mutual fund units (Refer to note 2.4)	1,326	1,326	-	-
Investments in non convertible debentures (Refer to note 2.4)	4,380	4,085	295	-
Investments in government securities (Refer to note 2.4)	5,302	5,302	-	-
Investments in equity instruments (Refer to note 2.4)	2	-	-	2
Investments in preference securities (Refer to note 2.4)	165	-	-	165
Investments in compulsorily convertible debentures (Refer to note 2.4)	7	-	-	7
Other investments (Refer to note 2.4)	42	-	-	42
Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to note 2.6)	178	-	178	-
Liabilities
Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer note 2.12)	9	-	9	-
Liability towards contingent consideration (Refer to note 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, and tax free bonds of ₹1,777 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

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.

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. Amounts have been utilized for bonus issue and share buyback from share premium account.

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

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.

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
	September 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)	2,102	2,130
4,20,54,64,426 (426,06,60,846) equity shares fully paid-up
	2,102	2,130

Forfeited shares amounted to ₹1,500/- (₹1,500/-) (1) Refer to note 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 September 30, 2021 and March 31, 2021 is set out below:

			(in ₹ crore, except as stated otherwise)
Particulars	As at September 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	610,917	-	1,668,280	1
Less: Shares bought back	55,807,337	28	-	-
As at the end of the period	420,54,64,426	2,102	426,06,60,846	2,130

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.

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 buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buyback price of ₹1,648.53/- per equity share comprising 1.31% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of ₹9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at September 30, 2021, the Company has created 'Capital Redemption Reserve' of ₹28 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 September 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.

2.11.2 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.

The amount of per share dividend recognized as distribution to equity shareholders is as follows: (in ₹)

Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Final dividend for fiscal 2021	-	-	15.00	-
Final dividend for fiscal 2020	-	-	-	9.50

The Board of Directors in their meeting held 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 cash outflow of ₹6,392 crore.

The Board of Directors in their meeting held on October 13, 2021 declared an interim dividend of ₹15/- per equity share which would result in a net cash outflow of approximately ₹6,308 crore.

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.

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 1,48,40,585 and 1,55,14,732 shares as at September 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 September 30, 2021 and March 31, 2021.

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

	2019 plan		2015 plan
Particulars	Six months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
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

Note: No grants were made during the three months ended September 30,2021 and September 30, 2020

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 September 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

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 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 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

				(in ₹ crore)
Particulars		Three months ended September 30,	Six months ended September 30,
	2021	2020	2021	2020
Granted to:
KMP	17	19	34	36
Employees other than KMP	71	67	151	118
Total (1)	88	86	185	154
(1) Cash settled stock compensation expense included in the above	3	23	8	35

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 with 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
	September 30, 2021	March 31, 2021
Non-current
Others
Compensated absences	94	91
Accrued compensation to employees (1)	8	-
Accrued expenses (1)(4)	216	163
Other payables (1)(6)	45	5
Total non-current other financial liabilities	363	259
Current
Unpaid dividends (1)	33	33
Others
Accrued compensation to employees (1)	2,973	2,915
Accrued expenses (1)(4)	4,055	2,944
Retention monies (1)	13	13
Payable for acquisition of business - Contingent consideration (2)	-	5
Capital creditors (1)	204	340
Compensated absences	1,830	1,640
Other payables (1)(5)(6)	458	460
Foreign currency forward and options contracts (2)(3)	15	9
Total current other financial liabilities	9,581	8,359
Total other financial liabilities	9,944	8,618
(1) Financial liability carried at amortized cost	8,005	6,873
(2) Financial liability carried at fair value through profit or loss	14	14
(3) Financial liability carried at fair value through other comprehensive income	1	-
(4) Includes dues to subsidiaries	10	74
(5) Includes dues to subsidiaries	319	174
Contingent consideration on undiscounted basis	-	5

(6) Deferred contract cost in note 2.9 includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability.

2.13 TRADE PAYABLES

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Trade payables(1)	1,907	1,562
Total trade payables	1,907	1,562
(1) Includes dues to subsidiaries	476	400

2.14 OTHER LIABILITIES

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Non current
Accrued defined benefit plan liability	258	274
Others
Deferred income	13	16
Deferred income - government grants	13	14
Withholding taxes and others	350	345
Total non - current other liabilities	634	649
Current
Accrued defined benefit plan liability	1	3
Unearned revenue	3,463	3,145
Others
Deferred income - government grants	12	2
Withholding taxes and others	1,671	1,666
Total current other liabilities	5,147	4,816
Total other liabilities	5,781	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
	September 30, 2021	March 31, 2021
Current
Others
Post-sales client support and others	818	661
Total provisions	818	661

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.

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 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.

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 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 equity.

Income tax expense in the statement of profit and loss comprises:

				(In ₹ crore)
Particulars	Three months ended September 30, Six months ended September 30,
	2021	2020	2021	2020
Current taxes	1,805	1,526	3,502	2,752
Deferred taxes	35	140	108	285
Income tax expense	1,840	1,666	3,610	3,037

Income tax expense for the three months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹11 crore and ₹87 crore, respectively. Income tax expense for the six months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹32 crore and ₹225 crore, respectively. These reversals pertains to prior periods on account of adjudication of certain disputed matters in favor of the Company and upon filing of return across various jurisdictions.

Deferred income tax for the three months and six months ended September 30, 2021 and September 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 has applied 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.

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.

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 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

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 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.

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.

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 and six months ended September 30, 2021 and September 30, 2020 is as follows:

				(In ₹ crore)
Particulars	Three months ended September 30,	Six months ended September 30,
	2021	2020	2021	2020
Revenue from software services	25,404	20,978	49,000	41,264
Revenue from products and platforms	58	68	176	108
Total revenue from operations	25,462	21,046	49,176	41,372

The Company 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 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 and six months ended September 30, 2021 and September 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 September 30,		Six months ended September 30,
Particulars	2021	2020	2021	2020
Revenue by offerings
Core	10,755	10,988	21,492	22,191
Digital	14,707	10,058	27,684	19,181
Total	25,462	21,046	49,176	41,372

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 nonmonetary 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 the transaction. The related revenue and expense are recognized 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.

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).

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 and six months ended September 30, 2021 and September 30, 2020 is as follows:				(In ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Interest income on financial assets carried at amortized cost
Tax free bonds and government bonds	38	35	76	69
Deposit with Bank and others	153	257	392	495
Interest income on financial assets fair valued through other comprehensive income
Non-convertible debentures, commercial paper, certificates of deposit and government securities	140	86	287	162
Income on investments carried at fair value through other comprehensive income	-	27	-	54
Income on investments carried at fair value through profit or loss
Dividend income on liquid mutual funds	-	7	-	8
Gain / (loss) on liquid mutual funds and other investments	29	10	52	32
Dividend received from subsidiary	592	-	592	-
Exchange gains/(losses) on foreign currency forward and options contracts	160	279	70	311
Exchange gains/(losses) on translation of assets and liabilities	(97)	(186)	46	(179)
Miscellaneous income, net	37	67	107	108
Total other income	1,052	582	1,622	1,060

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 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 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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Employee benefit expenses
Salaries including bonus	12,234	10,715	23,952	21,614
Contribution to provident and other funds	339	226	645	471
Share based payments to employees (Refer to note 2.11)	88	86	185	154
Staff welfare	73	26	143	36
	12,734	11,053	24,925	22,275
Cost of software packages and others
For own use	283	253	546	474
Third party items bought for service delivery to clients	453	295	718	555
	736	548	1,264	1,029
Other expenses
Power and fuel	21	25	43	48
Brand and Marketing	63	79	156	123
Short-term leases	3	1	7	12
Rates and taxes	54	41	105	84
Repairs and Maintenance	197	259	409	537
Consumables	7	4	14	11
Insurance	28	29	61	53
Provision for post-sales client support and others	27	(1)	32	10
Commission to non-whole time directors	3	2	5	3
Impairment loss recognized / (reversed) under expected credit loss model	30	40	66	126
Auditor's remuneration
Statutory audit fees	2	1	3	2
Tax matters	-	-	-	-
Other services	-	-	-	1
Contributions towards Corporate Social Responsibility	100	133	237	246
Others	24	5	39	13
	559	618	1,177	1,269

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 ("the Rules"), the Company intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary Infosys Green Forum established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.

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 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.

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.

2.21 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
	September 30, 2021	March 31, 2021
Contingent liabilities :
Claims against the Company, not acknowledged as debts(1)	4,048	3,753
[Amount paid to statutory authorities ₹4,890 crore (₹5,827 crore) ]
Commitments :
Estimated amount of contracts remaining to be executed on capital contracts and not provided for	910	609
(net of advances and deposits)(2)
Other Commitments*	8	10

*Uncalled capital pertaining to investments

(1) As at September 30, 2021, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹3,711 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 above tax claims amounted to ₹4,880 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 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 six months ended September 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.
• Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective July 20, 2021.
• Stater GmbH, a wholly-owned subsidiary of Stater N.V., was incorporated on August 4, 2021.
• Infosys Green Forum, a wholly-owned subsidiary of Infosys Limited, was incorporated on August 31, 2021.
• Infosys Consulting (Shanghai) Co., Ltd., a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective September 01, 2021.
• Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus Australia Pty Ltd, has been liquidated effective September 02, 2021.
• Beringer Commerce Inc. renamed as Blue Acorn iCi Inc.

The Company's material related party transactions during the three months and six months ended September 30, 2021 and September 30, 2020 and outstanding balances as at September 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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers (1)(2)	36	38	73	71
Commission and other benefits to non-executive / independent directors	3	2	5	3
Total	39	40	78	74

(1)Total employee stock compensation expense for the three months ended September 30, 2021 and September 30, 2020 includes a charge of ₹17 crore and ₹19 crore, respectively, towards key managerial personnel.

For the six months ended September 30, 2021 and September 30, 2020, includes a charge of ₹34 crore and ₹36 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

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

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

Bengaluru October 13, 2021

Chartered Accountants One International Centre, 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 September 30, 2021, the Condensed Consolidated Statement of Profit and Loss (including Other Comprehensive Income) for the three months and six months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the six 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 September 30, 2021, the consolidated profit and consolidated total comprehensive income for the three months and six months ended on that date, changes in equity and its cash flows for the six 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 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 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 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

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 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.

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: October 13, 2021

Condensed Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the three months and six months ended September 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 ……………………………………………………………………………………………………………………	8
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……………………………………………………………………………………………………………………	13
2.4 Investments ……………………………………………………………………………………………………………………………………………	14
2.5 Loans ……………………………………………………………………………………………………………………………………………	15
2.6 Other financial assets ……………………………………………………………………………………………………………………………………………	15
2.7 Trade receivables ……………………………………………………………………………………………………………………………………………	15
2.8 Cash and cash equivalents ……………………………………………………………………………………………………………………………………………	16
2.9 Other assets ……………………………………………………………………………………………………………………………………………	16
2.10 Financial instruments ……………………………………………………………………………………………………………………………………………	17
2.11 Equity ……………………………………………………………………………………………………………………………………………	21
2.12 Other financial liabilities ……………………………………………………………………………………………………………………………………………………	24
2.13 Other liabilities ……………………………………………………………………………………………………………………………………………	24
2.14 Provisions ……………………………………………………………………………………………………………………………………………	25
2.15 Income taxes ……………………………………………………………………………………………………………………………………………	26
2.16 Revenue from operations ……………………………………………………………………………………………………………………………………………	27
2.17 Other income, net ……………………………………………………………………………………………………………………………………………	30
2.18 Expenses ……………………………………………………………………………………………………………………………………………	31
2.19 Leases ……………………………………………………………………………………………………………………………………………	33
2.20 Basic and diluted shares used in computing earnings per equity share ……………………………………………………………………………………………………………………………………………	35
2.21 Contingent liabilities and commitments ………………………………………………………………………………35
2.22 Related party transactions ……………………………………………………………………………………………………………………………………………	36
2.23 Segment reporting ……………………………………………………………………………………………………………………………………………	37
2.24 Function wise classification of Condensed Consolidated Statement of Profit and Loss ……………………………………………………………………………………………………………………………………………	39

			(In ₹ crore )
Condensed Consolidated Balance Sheets as at	Note	September 30, 2021	March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment	2.2	12,913	12,560
Right-of-use assets	2.19	4,599	4,794
Capital work-in-progress		383	922
Goodwill	2.3	6,122	6,079
Other intangible assets		1,895	2,072
Financial assets:
Investments	2.4	10,096	11,863
Loans	2.5	45	32
Other financial assets	2.6	1,252	1,141
Deferred tax assets (net)		976	1,098
Income tax assets (net)		5,796	5,811
Other non-current assets	2.9	2,025	1,281
Total non-current assets		46,102	47,653
Current assets
Financial assets:
Investments	2.4	4,983	2,342
Trade receivables	2.7	20,121	19,294
Cash and cash equivalents	2.8	18,056	24,714
Loans	2.5	191	159
Other financial assets	2.6	7,385	6,410
Other Current assets	2.9	9,272	7,814
Total current assets		60,008	60,733
Total assets		106,110	108,386
EQUITY AND LIABILITIES
Equity Equity share capital
Other equity	2.11	2,097 67,842	2,124 74,227
Total equity attributable to equity holders of the Company		69,939	76,351
Non-controlling interests		409	431
Total equity		70,348	76,782
Liabilities
Non-current liabilities
Financial Liabilities
Lease liabilities	2.19	4,356	4,587
Other financial liabilities	2.12	2,109	1,514
Deferred tax liabilities (net)		858	875
Other non-current liabilities	2.13	751	763
Total non-current liabilities		8,074	7,739
Current liabilities
Financial Liabilities
Lease liabilities	2.19	788	738
Trade payables		3,176	2,645
Other financial liabilities	2.12	13,605	11,390
Other current liabilities	2.13	6,802	6,233
Provisions	2.14	862	713
Income tax liabilities (net)		2,455	2,146
Total current liabilities		27,688	23,865
Total equity and liabilities		106,110	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

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 October 13, 2021 October 13, 2021

1

				(In ₹ crore, except equity share and per equity share data) Six months ended September 30,
Condensed Consolidated Statement of Profit and Loss for the	Note No.	Three months ended September 30,
		2021	2020	2021	2020
Revenue from operations	2.16	29,602	24,570	57,498	48,234
Other income, net	2.17	524	570	1,146	1,046
Total income		30,126	25,140	58,644	49,280
Expenses
Employee benefit expenses	2.18	15,743	13,400	30,973	27,004
Cost of technical sub-contractors		3,054	1,634	5,508	3,260
Travel expenses		163	151	296	267
Cost of software packages and others	2.18	1,393	1,108	2,682	2,001
Communication expenses		146	162	294	324
Consultancy and professional charges		449	286	844	548
Depreciation and amortisation expenses		859	855	1,687	1,611
Finance cost		48	48	98	96
Other expenses	2.18	823	746	1,639	1,626
Total expenses		22,678	18,390	44,021	36,737
Profit before tax		7,448	6,750	14,623	12,543
Tax expense:
Current tax	2.15	1,987	1,763	3,923	3,084
Deferred tax	2.15	33	129	71	328
Profit for the period		5,428	4,858	10,629	9,131
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net
		14	7	(19)	154
Equity instruments through other comprehensive income, net		40 54	(5) 2	41 22	(6) 148
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		6	27	11	21
Exchange differences on translation of foreign operations		(166)	21	124	185
Fair value changes on investments, net		55	(45)	93	9
		(105)	3	228	215
Total other comprehensive income /(loss), net of tax		(51)	5	250	363
Total comprehensive income for the period		5,377	4,863	10,879	9,494
Profit attributable to:
Owners of the Company Non-controlling interests		5,421 7	4,845 13	10,616 13	9,078 53
		5,428	4,858	10,629	9,131
Total comprehensive income attributable to:
Owners of the Company		5,375	4,847	10,866	9,434
Non-controlling interests		2	16	13	60
		5,377	4,863	10,879	9,494
Earnings per Equity share
Equity shares of par value ₹5/- each
Basic (₹)		12.88	11.42	25.11	21.40
Diluted (₹)		12.85	11.40	25.06	21.37
Weighted average equity shares used in computing earnings per equity share	2.20
Basic		4,210,064,823	4,241,908,471	4,227,694,034	4,241,506,966
Diluted		4,218,293,582	4,248,961,564	4,236,051,581	4,248,434,533

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

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

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
	Equity Share capital (1)	Capital reserve	Capital redemption reserve	Securities Premium	Retained earnings	General reserve	Share Options Outstanding Account	Special Economic Zone Re investment (2) reserve	Other (3) reserves	Equity instruments through other comprehensive income	Exchange differences on translating the financial statements of a foreign operation	Effective portion of Cash Flow Hedges	Other items of other comprehensive income / (loss)	Total equity attributable to equity holders of the Company	Non controlling interest	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 six months ended September 30, 2020
Profit for the period	—	—	—	—	9,078	—	—	—	—	—	—	—	—	9,078	53	9,131
Remeasurement of the net defined benefit liability/asset, net*	—	—	—	—	—	—	—	—	—	—	—	—	154	154	—	154
Equity instruments through other comprehensive income, net*	—	—	—	—	—	—	—	—	—	(6)	—	—	—	(6)	—	(6)
Fair value changes on derivatives designated as cash flow hedge, net*	—	—	—	—	—	—	—	—	—	—	—	21	—	21	—	21
Exchange differences on translation of foreign operations	—	—	—	—	—	—	—	—	—	—	178	—	—	178	7	185
Fair value changes on investments, net*	—	—	—	—	—	—	—	—	—	—	—	—	9	9	—	9
Total Comprehensive income for the period	—	—	—	—	9,078	—	—	—	—	(6)	178	21	163	9,434	60	9,494
Shares issued on exercise of employee stock options (Refer to Note 2.11)	1	—	—	5	—	—	—	—	—	—	—	—	—	6	—	6
Employee stock compensation expense (Refer to Note 2.11)	—	—	—	—	—	—	134	—	—	—	—	—	—	134	—	134
Exercise of stock options	—	—	—	100	—	—	(100)	—	—	—	—	—	—	—	—	—
Transfer on account of options not exercised	—	—	—	—	—	1	(1)	—	—	—	—	—	—	—	—	—
Income tax benefit arising on exercise of stock options	—	—	—	5	—	—	—	—	—	—	—	—	—	5	—	5
Dividends paid to non controlling interest of subsidiary	—	—	—	—	—	—	—	—	—	—	—	—	—	—	(20)	(20)
Dividends (1)	—	—	—	—	(4,029)	—	—	—	—	—	—	—	—	(4,029)	—	(4,029)
Transfer to general reserve	—	—	—	—	(1,554)	1,554	—	—	—	—	—	—	—	—	—	—
Transferred to Special Economic Zone Re-investment reserve	—	—	—	—	(1,463)	—	—	1,463	—	—	—	—	—	—	—	—
Transferred from Special Economic Zone Re-investment reserve on utilization	—	—	—	—	561	—	—	(561)	—	—	—	—	—	—	—	—
Balance as at September 30, 2020	2,123	54	111	392	58,902	2,713	330	4,972	6	33	1,385	6	(27)	71,000	434	71,434

Particulars		OTHER EQUITY
					RESERVES & SURPLUS						Other comprehensive income			Total equity
	Equity Share capital (1)	Capital reserve	Capital redemption reserve	Securities Premium	Retained earnings	General reserve	Share Options Outstanding Account	Special Economic Zone Re investment (2) reserve	Other (3) reserves	Equity instruments through other comprehensive income	Exchange differences on translating the financial statements of a foreign operation	Effective portion of Cash Flow Hedges	Other items of other comprehensive income / (loss)	attributable to equity holders of the Company	Non controlling interest	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 six months ended September 30, 2021
Profit for the period	—	—	—	—	10,616	—	—	—	—	—	—	—	—	10,616	13	10,629
Remeasurement of the net defined benefit liability/asset, net*	—	—	—	—	—	—	—	—	—	—	—	—	(19)	(19)	—	(19)
Equity instruments through other comprehensive income, net*	—	—	—	—	—	—	—	—	—	41	—	—	—	41	—	41
Fair value changes on derivatives designated as cash flow hedge, net*	—	—	—	—	—	—	—	—	—	—	—	11	—	11	—	11
Exchange differences on translation of foreign operations	—	—	—	—	—	—	—	—	—	—	124	—	—	124	—	124
Fair value changes on investments, net*	—	—	—	—	—	—	—	—	—	—	—	—	93	93	—	93
Total Comprehensive income for the period	—	—	—	—	10,616	—	—	—	—	41	124	11	74	10,866	13	10,879
Shares issued on exercise of employee stock options (Refer to Note 2.11)	1	—	—	8	—	—	—	—	—	—	—	—	—	9	—	9
Employee stock compensation expense (Refer to Note 2.11)	—	—	—	—	—	—	196	—	—	—	—	—	—	196	—	196
Buyback of equity shares (Refer to Note 2.11) **	(28)	—	—	(640)	(8,822)	(1,603)	—	—	—	—	—	—	—	(11,093)	—	(11,093)
Transaction costs relating to buyback*	—	—	—	—	—	(28)	—	—	—	—	—	—	—	(28)	—	(28)
Amount transferred to capital redemption reserve upon buyback	—	—	28	—	—	(28)	—	—	—	—	—	—	—	—	—	—
Transfer to legal reserve	—	—	—	—	(9)	—	—	—	9	—	—	—	—	—	—	—
Transfer on account of exercise of stock options	—	—	—	69	—	—	(69)	—	—	—	—	—	—	—	—	—
Income tax benefit arising on exercise of stock options	—	—	—	3	—	—	4	—	—	—	—	—	—	7	—	7
Dividends (1)	—	—	—	—	(6,369)	—	—	—	—	—	—	—	—	(6,369)	—	(6,369)
Dividends paid to non controlling interest of subsidiary	—	—	—	—	—	—	—	—	—	—	—	—	—	—	(35)	(35)
Transferred to Special Economic Zone Re-investment reserve	—	—	—	—	(1,496)	—	—	1,496	—	—	—	—	—	—	—	—
Transferred from Special Economic Zone Re-investment reserve on utilization	—	—	—	—	411	—	—	(411)	—	—	—	—	—	—	—	—
Balance as at September 30, 2021	2,097	54	139	40	56,974	1,056	503	7,470	15	199	1,455	21	(84)	69,939	409	70,348

* Net of tax

** Including tax on buyback of ` 1,893 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.

4

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

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

Partner Chairman Chief Executive Officer Chief Operating Officer 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 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.

			(In ₹ crore)
Particulars	Note No.	Six months ended September 30,
		2021	2020
Cash flow from operating activities
Profit for the period		10,629	9,131
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense	2.15	3,994	3,412
Depreciation and amortization		1,687	1,611
Interest and dividend income	2.18	(885)	(804)
Finance cost		98	96
Impairment loss recognized / (reversed) under expected credit loss model		87	159
Exchange differences on translation of assets and liabilities, net		54	(7)
Stock compensation expense	2.11	209	174
Other adjustments		36	(60)
Changes in assets and liabilities
Trade receivables and unbilled revenue		(2,963)	(67)
Loans, other financial assets and other assets		(406)	415
Trade payables		349	(477)
Other financial liabilities, other liabilities and provisions		2,754	773
Cash generated from operations		15,643	14,356
Income taxes paid		(3,574)	(2,987)
Net cash generated by operating activities		12,069	11,369
Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles		(1,030)	(1,306)
Deposits placed with corporation		(516)	(495)
Redemption of deposits placed with Corporation		343	362
Interest and dividend received		1,017	708
Payment of contingent consideration pertaining to acquisition of business		(53)	(150)
Escrow and other deposits pertaining to Buyback	2.6	(420)	—
Redemption of escrow and other deposits pertaining to Buyback	2.6	420	—
Other receipts		35	25
Other payments		(22)	—
Payments to acquire Investments Liquid mutual funds and fixed maturity plan securities		(25,411)	(11,960)
Non convertible debentures		(154)	(829)
Certificates of deposit		(498)	—
Government securities		(653)	(4,664)
Others		(13)	(1)
Proceeds on sale of Investments
Non-convertible debentures		1,299	720
Government securities		1,336	1,529
Certificates of deposit Liquid mutual funds and fixed maturity plan securities		500 22,928	900 11,850
Others		1	22
Net cash (used in) / from investing activities		(891)	(3,289)

Cash flows from financing activities:
Payment of lease liabilities		(421)	(351)
Payment of dividends		(6,369)	(4,031)
Payment of dividend to non-controlling interest of subsidiary		(2)	(20)
Shares issued on exercise of employee stock options		9	6
Other receipts		117	—
Other payments		(15)	—
Buyback of equity shares including transaction cost and tax on buyback		(11,125)	—
Net cash used in financing activities		(17,806)	(4,396)
Net increase / (decrease) in cash and cash equivalents		(6,628)	3,684
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		(30)	78
Cash and cash equivalents at the end of the period	2.8	18,056	22,411
Supplementary information:

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

Mumbai Bengaluru

A.G.S. Manikantha Company Secretary

October 13, 2021 October 13, 2021

Overview and notes to the interim condensed 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 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 October 13, 2021.

1.2 Basis of preparation of financial statements

These interim condensed consolidated financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, 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.

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.

As the quarter and year-to-date figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarters might not always add up to the year-to-date figures reported in this statement.

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. 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

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 judgment.

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-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 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 to Notes 2.15 and 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

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.

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 (Refer to Note 2.3) .

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 to Note 2.19) .

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.

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.

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 accounted for at carrying value of the assets acquired and liabilities assumed in the Group's consolidated financial statements.

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 finder's fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred.

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

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 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 September 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 July 1, 2021	1,400	10,745	3,324	1,387	7,940	2,168	1,226	44	28,234
Additions	12	303	109	21	308	72	8	—	833
Deletions*	—	—	(1)	(4)	(405)	(5)	(1)	—	(416)
Translation difference	—	(1)	(1)	(1)	(9)	(3)	(4)	—	(19)
Gross carrying value as at September 30, 2021	1,412	11,047	3,431	1,403	7,834	2,232	1,229	44	28,632
Accumulated depreciation as at July 1, 2021	—	(3,780)	(2,484)	(1,070)	(5,844)	(1,635)	(747)	(33)	(15,593)
Depreciation	—	(105)	(58)	(31)	(261)	(52)	(46)	(2)	(555)
Accumulated depreciation on deletions*	—	—	1	4	404	5	1	—	415
Translation difference	—	1	1	2	8	2	—	—	14
Accumulated depreciation as at September 30, 2021	—	(3,884)	(2,540)	(1,095)	(5,693)	(1,680)	(792)	(35)	(15,719)
Carrying value as at July 1, 2021	1,400	6,965	840	317	2,096	533	479	11	12,641
Carrying value as at September 30, 2021	1,412	7,163	891	308	2,141	552	437	9	12,913

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

Total
26,138
450
(46)
18
26,560
(13,698)
(570)
45
(5)
(14,228)
12,440
12,332

The changes in the carrying value of property, plant and equipment for the six months ended September 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	13	455	134	39	644	88	46	—	1,419
Deletions*	—	—	(2)	(8)	(457)	(7)	(10)	—	(484)
Translation difference	—	27	3	1	8	2	5	—	46
Gross carrying value as at September 30, 2021	1,412	11,047	3,431	1,403	7,834	2,232	1,229	44	28,632
Accumulated depreciation as at April 1, 2021	—	(3,675)	(2,425)	(1,043)	(5,636)	(1,580)	(700)	(32)	(15,091)
Depreciation	—	(206)	(115)	(60)	(508)	(105)	(96)	(3)	(1,093)
Accumulated depreciation on deletions*	—	—	2	8	456	7	10	—	483
Translation difference	—	(3)	(2)	—	(5)	(2)	(6)	—	(18)
Accumulated depreciation as at September 30, 2021	—	(3,884)	(2,540)	(1,095)	(5,693)	(1,680)	(792)	(35)	(15,719)
Carrying value as at April 1, 2021	1,399	6,890	871	328	2,003	569	488	12	12,560
Carrying value as at September 30, 2021	1,412	7,163	891	308	2,141	552	437	9	12,913

*During each of the three months and six months ended September 30, 2021, certain assets which were old and not in use having gross book value of ₹262 crore (net book value: Nil) were retired.

The changes in the carrying value of property, plant and equipment for the six months ended September 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	70	53	26	32	663	19	97	—	960
Deletions	—	—	(3)	(5)	(44)	(5)	(12)	(1)	(70)
Translation difference	—	14	1	1	8	1	4	—	29
Gross carrying value as at September 30, 2020	1,388	10,083	3,209	1,293	7,303	2,088	1,152	44	26,560
Accumulated depreciation as at April 1, 2020	—	(3,284)	(2,145)	(934)	(4,885)	(1,380)	(550)	(28)	(13,206)
Depreciation	—	(191)	(151)	(63)	(471)	(115)	(87)	(3)	(1,081)
Accumulated depreciation on deletions	—	—	3	4	44	5	12	1	69
Translation difference	—	(2)	—	(1)	(3)	—	(4)	—	(10)
Accumulated depreciation as at September 30, 2020	—	(3,477)	(2,293)	(994)	(5,315)	(1,490)	(629)	(30)	(14,228)
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 September 30, 2020	1,388	6,606	916	299	1,988	598	523	14	12,332

(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
	September 30, 2021 March 31, 2021
Carrying value at the beginning	6,079	5,286
Goodwill on acquisitions	—	758
Translation differences	43	35
Carrying value at the end	6,122	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

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 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
	September 30, 2021	March 31, 2021
Non-current
Unquoted
Investments carried at fair value through other comprehensive income
Preference securities	218	165
Equity instruments	2	2
	220	167
Investments carried at fair value through profit and loss
Preference securities	23	11
Compulsorily convertible debentures	7	7
Others (1)	84	74
	114	92
Quoted
Investments carried at amortized cost
Tax free bonds	2,106	2,131
Government bonds	21	21
	2,127	2,152
Investments carried at fair value through other comprehensive income
Non convertible debentures	3,012	3,985
Government securities	4,623	5,467
	7,635	9,452
Total non-current investments	10,096	11,863
Current
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units	4,042	1,500
	4,042	1,500
Quoted
Investments carried at amortized cost
Tax free bonds	20	—
	20	—
Investments carried at fair value through other comprehensive income
Non convertible debentures	711	842
Government securities	210	—
	921	842
Total current investments	4,983	2,342
Total investments	15,079	14,205
Aggregate amount of quoted investments	10,703	12,446
Market value of quoted investments (including interest accrued), current	942	843
Market value of quoted investments (including interest accrued), non current	10,132	11,997
Aggregate amount of unquoted investments	4,376	1,759
Investments carried at amortized cost	2,147	2,152
Investments carried at fair value through other comprehensive income	8,776	10,461
Investments carried at fair value through profit or loss	4,156	1,592

(1) Uncalled capital commitments outstanding as at September 30, 2021 and March 31, 2021 was ₹33 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
		September 30, 2021	March 31, 2021
Liquid mutual fund units	Quoted price	4,042	1,500
Tax free bonds and government bonds	Quoted price and market observable inputs	2,515	2,536
Non-convertible debentures	Quoted price and market observable inputs	3,723	4,827
Government securities	Quoted price	4,833	5,467
Unquoted equity and preference securities - carried at fair value	Discounted cash flows method, Market multiples method,	220	167
through other comprehensive income	Option pricing model
Unquoted equity and preference securities - carried at fair value	Discounted cash flows method, Market multiples method,	23	11
through profit and loss	Option pricing model
Unquoted compulsorily convertible debentures - carried at fair value	Discounted cash flows method	7	7
through profit and loss
Others	Discounted cash flows method, Market multiples method,	84	74
	Option pricing model
Total		15,447	14,589

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
	September 30, 2021	March 31, 2021
Non Current
Unsecured, considered good
Other loans
Loans to employees	45	32
	45	32
Unsecured, considered doubtful
Other loans
Loans to employees	32	28
	77	60
Less: Allowance for doubtful loans to employees	32	28
Total non-current loans	45	32
Current
Unsecured, considered good
Other loans
Loans to employees	191	159
Total current loans	191	159
Total loans	236	191

2.6 OTHER FINANCIAL ASSETS

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Non Current
Security deposits (1)	49	49
Rental deposits (1)	187	217
Unbilled revenues (1)#	553	399
Net investment in sublease of right of use asset (1)	337	350
Restricted deposits (1)*	63	42
Others (1)	63	84
Total non-current other financial assets	1,252	1,141
Current
Security deposits (1)	6	6
Rental deposits (1)	62	30
Restricted deposits (1)*	2,167	2,016
Unbilled revenues (1)#	4,094	3,173
Interest accrued but not due (1)	496	620
Foreign currency forward and options contracts (2) (3)	122	188
Net investment in sublease of right of use asset (1)	41	38
Others (1)	397	339
Total current other financial assets	7,385	6,410
Total other financial assets	8,637	7,551
(1) Financial assets carried at amortized cost	8,515	7,363
(2) Financial assets carried at fair value through other comprehensive income	40	25
(3) Financial assets carried at fair value through profit or loss	82	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.

2.7 TRADE RECEIVABLES

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Current
Unsecured
Considered good	20,121	19,294
Considered doubtful	656	619
	20,777	19,913
Less: Allowance for credit loss	656	619
Total trade receivables(1)	20,121	19,294
(1) Includes dues from companies where directors are interested	—	—

2.8 CASH AND CASH EQUIVALENTS

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Balances with banks
In current and deposit accounts	14,994	20,069
Cash on hand	—	—
Others
Deposits with financial institutions	3,062	4,645
Total cash and cash equivalents	18,056	24,714
Balances with banks in unpaid dividend accounts	33	33
Deposit with more than 12 months maturity	9,753	13,659
Balances with banks held as margin money deposits against guarantees	70	71

Cash and cash equivalents as at September 30, 2021 and March 31, 2021 include restricted cash and bank balances of ₹526 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.

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.

2.9 OTHER ASSETS

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Non Current
Capital advances	126	141
Advances other than capital advances
Others
Withholding taxes and others	682	705
Unbilled revenues #	205	195
Defined benefit plan assets	28	19
Prepaid expenses	88	78
Deferred Contract Cost *	896	143
Total Non-Current other assets	2,025	1,281
Current
Advances other than capital advances
Payment to vendors for supply of goods	65	141
Others
Unbilled revenues #	5,319	4,354
Withholding taxes and others	2,084	2,091
Prepaid expenses	1,361	1,160
Deferred Contract Cost *	422	65
Other receivables	21	3
Total Current other assets	9,272	7,814
Total other assets	11,297	9,095

Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

* Includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for 733 crore which has been considered as financial liability. This includes667 crore settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction (Refer to note 2.12)

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 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.

2.10.2 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

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

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 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

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 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 September 30, 2021 are as follows:

							(In ₹ crore)
Particulars	Amortized cost	Financial assets/ liabilities at fair value through profit or loss		Financial assets/liabilities at fair value through OCI		Total carrying value	Total fair value
		Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
Assets:
Cash and cash equivalents (Refer to Note 2.8) Investments (Refer to Note 2.4)	18,056	—	—	—	—	18,056	18,056
Equity and preference securities	—	—	23	220	—	243	243
Compulsorily convertible debentures	—	—	7	—	—	7	7
Tax-free bonds and government bonds	2,147	—	—	—	—	2,147	2,515 (1)
Liquid mutual fund units	—	—	4,042	—	—	4,042	4,042
Non convertible debentures	—	—	—	—	3,723	3,723	3,723
Government securities	—	—	—	—	4,833	4,833	4,833
Other investments	—	—	84	—	—	84	84
Trade receivables (Refer to Note 2.7)	20,121	—	—	—	—	20,121	20,121
Loans (Refer to Note 2.5)	236	—	—	—	—	236	236
Other financials assets (Refer to Note 2.6) (3)	8,515	—	82	—	40	8,637	8,560 (2)
Total	49,075	—	4,238	220	8,596	62,129	62,420
Liabilities:
Trade payables	3,176	—	—	—	—	3,176	3,176
Lease liabilities (Refer to Note 2.19)	5,144	—	—	—	—	5,144	5,144
Financial Liability under option arrangements (Refer to Note 2.12)	—	—	695	—	—	695	695
Other financial liabilities (Refer to Note 2.12)	12,521	—	160	—	1	12,682	12,682
Total	20,841	—	855	—	1	21,697	21,697

(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 ₹77 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)
Amortised cost					Total carrying value	Total fair value
	Designated upon initial recognition	Mandatory	Equity instruments designated upon initial recognition	Mandatory
24,714	—	—	—	—	24,714	24,714
—	—	7	—	—	7	7
2,152	—	—	—	—	2,152	2,536 (1)
—	—	1,500	—	—	1,500	1,500
191	—	—	—	—	191	191
7,363	—	163	—	25	7,551	7,459 (2)
53,714	—	1,755	167	10,319	65,955	66,247
2,645	—	—	—	—	2,645	2,645
5,325	—	—	—	—	5,325	5,325
—	—	693	—	—	693	693
17,847	—	910	—	—	18,757	18,757
	— — — — 19,294 9,877	— — — — — —	Financial assets/ liabilities at fair value through profit or loss 11 — — 74 — 217	167 — — — — —	Financial assets/liabilities at fair value through OCI — 4,827 5,467 — — —	178 4,827 5,467 74 19,294 10,094	178 4,827 5,467 74 19,294 10,094

(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

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 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 September 30, 2021:

			(In ₹ crore)
As at September	Fair value measurement at end of the reporting
30, 2021
	Level 1	Level 2	Level 3
4,042	4,042	—	—
2,493	2,212	281	—
22	22	—	—
3,723	2,144	1,579	—
4,833	4,748	85	—
2	—	—	2
241	—	—	241
7	—	—	7
84	—	—	84
122	—	122	—
44	—	44	—
695	—	—	695
117	—	—	117
			period using

(1) Discount rate pertaining to contingent consideration ranges from 8% to 14.5%

During the six months ended September 30, 2021, tax free bonds and non-convertible debentures of ₹1,010 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 ₹1,579 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 (Refer to Note 2.12) 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.

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.

(In ₹ crore)

2.11 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 securities premium.

Description of reserves

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.

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. Amounts have been utilized for bonus issue and share buyback from share premium account.

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

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.

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 and changes in fair value of derivatives designated as cash flow hedges, net of taxes.

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
	September 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)	2,097 2,124
4,19,06,23,841 (424,51,46,114) equity shares fully paid-up(2)
	2,097 2,124

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 1,48,40,585 (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 September 30, 2021 and March 31, 2021 are as follows:

			(In ₹ crore, except as stated otherwise)
Particulars		As at September 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	1,285,064	1	4,392,904	2
Less: Shares bought back	55,807,337	28	—	—
As at the end of the period	4,190,623,841	2,097	4,245,146,114	2,124

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.

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 buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period, the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buy back price of ₹1,648.53/- per equity share comprising 1.31% of the pre buyback paid-up equity share capital of the Company. The buyback resulted in a cash outflow of ₹9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at September 30, 2021, the Company has created 'Capital Redemption Reserve' of ₹28 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 September 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

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:

				(in ₹)
Particulars	Three months ended September 30, Six months ended September 30,
	2021	2020	2021	2020
Final dividend for fiscal 2020	—	—	—	9.50
Final dividend for fiscal 2021	—	—	15.00	—

The Board of Directors in their meeting held 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).

The Board of Directors in their meeting held on October 13, 2021 declared a interim dividend of ₹15/- per equity share which would result in a net cash outflow of approximately ₹6,286 crore, excluding dividend paid on treasury shares.

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 insubstance, 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.

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 14,840,585 and 15,514,732 shares as at September 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 September 30, 2021 and March 31, 2021.

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

Particulars	2019 Plan 2015 Plan
	Six months ended Six months ended
	September 30, September 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

Note: No grants were made during the three months ended September 30, 2021 and September 30, 2020

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 September 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.

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 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 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:

				(in ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Granted to:
KMP	17	19	34	36
Employees other than KMP	82	79	175	138
Total (1)	99	98	209	174
(1) Cash-settled stock compensation expense included above	6	27	13	40

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:

Particulars	For options granted in
	Fiscal 2022-	Fiscal 2022-	Fiscal 2021-	Fiscal 2021-
	Equity Shares	ADS-RSU	Equity Shares-RSU	ADS-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
	September 30, 2021	March 31, 2021
Non-current
Others
Accrued compensation to employees (1)	8	—
Accrued expenses (1)	651	569
Compensated absences	101	97
Financial liability under option arrangements (2)	695	693
Payable for acquisition of business - Contingent consideration (2)	53	86
Other Payables (1)(4)	601	69
Total non-current other financial liabilities	2,109	1,514
Current
Unpaid dividends (1)	33	33
Others
Accrued compensation to employees (1)	4,023	4,019
Accrued expenses (1)	6,252	4,475
Retention monies (1)	13	13
Payable for acquisition of business - Contingent consideration (2)	64	75
Payable by controlled trusts (1)	211	199
Compensated absences	2,236	2,020
Foreign currency forward and options contracts (2) (3)	44	56
Capital creditors (1)	236	371
Other payables (1)(4)	493	129
Total current other financial liabilities	13,605	11,390
Total other financial liabilities	15,714	12,904
(1) Financial liability carried at amortized cost	12,521	9,877
(2) Financial liability carried at fair value through profit or loss	855	910
(3) Financial liability carried at fair value through other comprehensive income	1	—
Contingent consideration on undiscounted basis	131	181

(4) Deferred contract cost in note 2.9 includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. Further as at September 30, 2021 the Company has entered into a financing arrangement with a third party for these assets for 733 crore which has been considered as financial liability. This includes667 crore settled directly by the third party to the customer on behalf of the Company and accordingly considered as non-cash transaction.

2.13 OTHER LIABILITIES

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Non-current
Others
Withholding taxes and others	370	364
Deferred income - government grants	56	57
Accrued defined benefit plan liability	311	324
Deferred income	13	17
Others	1	1
Total non-current other liabilities	751	763
Current
Unearned revenue	4,394	4,050
Others
Withholding taxes and others	2,386	2,170
Accrued defined benefit plan liability	4	6
Deferred income - government grants	14	3
Others	4	4
Total current other liabilities	6,802	6,233
Total other liabilities	7,553	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 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 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

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.

Provision for post-sales client support and other provisions:

		(In ₹ crore)
Particulars	As at
	September 30, 2021	March 31, 2021
Current
Others
Post-sales client support and other provisions	862	713
Total provisions	862	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.

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.

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 equity.

Income tax expense in the Consolidated Statement of Profit and Loss comprises:

				(In ₹ crore)
Particulars	Three months ended September 30, Six months ended September 30,
	2021	2020	2021	2020
Current taxes	1,987	1,763	3,923	3,084
Deferred taxes	33	129	71	328
Income tax expense	2,020	1,892	3,994	3,412

Income tax expense for the three months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹20 crore and ₹99 crore, respectively. Income tax expense for the six months ended September 30, 2021 and September 30, 2020 includes reversal (net of provisions) of ₹33 crore and ₹230 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:

Particulars	Three months ended September 30,		(In ₹ crore) Six months ended September 30,
	2021	2020	2021	2020
Profit before income taxes	7,448	6,750	14,623	12,543
Enacted tax rates in India	34.94%	34.94%	34.94%	34.94%
Computed expected tax expense	2,603	2,359	5,110	4,383
Tax effect due to non-taxable income for Indian tax purposes	(833)	(622)	(1,499)	(1,169)
Overseas taxes	247	183	446	347
Tax provision (reversals)	(20)	(99)	(33)	(230)
Effect of exempt non-operating income	(8)	(9)	(27)	(18)
Effect of unrecognized deferred tax assets	(4)	9	(4)	26
Effect of differential tax rates	(43)	(46)	(74)	(74)
Effect of non-deductible expenses	28	27	65	65
Impact of change in tax rate	(47)	—	(47)	—
Others	97	90	57	82
Income tax expense	2,020	1,892	3,994	3,412

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

Deferred income tax for the three months and six months ended September 30, 2021 and September 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 has applied 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.

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 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 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.

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.

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 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 and six months ended September 30, 2021 and September 30, 2020 are as follows:

				(In ₹ crore)
	Three months ended		Six months ended
Particulars	September 30,		September 30,
	2021	2020	2021	2020
Revenue from software services	27,813	22,728	53,659	44,747
Revenue from products and platforms	1,789	1,842	3,839	3,487
Total revenue from operations	29,602	24,570	57,498	48,234

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 September 30, 2021 and September 30, 2020:

									(In ₹ crore)
Particulars	Financial Services (1)		Retail(2) Communica tion (3)	Energy , Utilities, Resources and Services	Manufacturin g	Hi-Tech	Life (4) Sciences	Others (5)	Total
Revenues by Geography*
North America	5,942	2,939	2,004	1,803	1,568	2,343	1,505	228	18,332
	4,547	2,403	1,618	1,710	1,178	2,126	1,141	193	14,916
Europe	1,676	1,150	870	1,392	1,576	54	557	53	7,328
	1,622	1,033	699	1,043	998	39	493	52	5,979
India	469	20	107	35	19	101	8	11	770
	394	12	74	4	12	65	5	174	740
Rest of the world	1,479	221	687	271	56	13	33	412	3,172
	1,308	203	702	270	53	14	33	352	2,935
Total	9,566	4,330	3,668	3,501	3,219	2,511	2,103	704	29,602
	7,871	3,651	3,093	3,027	2,241	2,244	1,672	771	24,570
Revenue by offerings
Digital	4,984	2,645	2,222	2,025	1,847	1,453	1,188	240	16,604
	3,717	1,885	1,512	1,437	997	1,111	692	273	11,624
Core	4,582	1,685	1,446	1,476	1,372	1,058	915	464	12,998
	4,154	1,766	1,581	1,590	1,244	1,133	980	498	12,946
Total	9,566	4,330	3,668	3,501	3,219	2,511	2,103	704	29,602
	7,871	3,651	3,093	3,027	2,241	2,244	1,672	771	24,570

For the six months ended September 30, 2021 and September 30, 2020:

									(In ₹ crore)
Particulars	Financial Services (1)		Retail(2) Communica tion (3)	Energy , Utilities, Resources and Services	Manufacturin g	Hi-Tech	Life Sciences(4)	Others (5)	Total
Revenues by Geography*
North America	11,669	5,725	3,779	3,530	3,009	4,496	2,873	456	35,537
	8,921	4,579	3,433	3,422	2,476	4,071	2,189	365	29,456
Europe	3,327	2,300	1,693	2,727	2,759	106	1,044	109	14,065
	3,158	2,051	1,328	2,079	1,883	70	988	107	11,664
India	871	49	216	67	33	191	16	148	1,591
	762	22	130	8	27	137	12	325	1,423
Rest of the world	2,916	431	1,383	547	121	28	61	818	6,305
	2,487	391	1,366	545	111	29	57	705	5,691
Total	18,783	8,505	7,071	6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234
Revenue by offerings
Digital	9,797	5,038	4,152	3,883	3,291	2,725	2,200	565	31,651
	7,143	3,499	3,007	2,757	2,026	1,978	1,257	489	22,156
Core	8,986	3,467	2,919	2,988	2,631	2,096	1,794	966	25,847
	8,185	3,544	3,250	3,297	2,471	2,329	1,989	1,013	26,078
Total	18,783	8,505	7,071	6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234

(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 receivables and unbilled revenues are presented net of impairment in the consolidated Balance Sheet.

2.17 OTHER INCOME, NET

Accounting policy

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.

Foreign currency

Accounting policy

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

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.

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 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.

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.

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 and six months September 30, 2021 and September 30, 2020 is as follows:

				(In ₹ crore)
Particulars	Three months ended September 30,		Six months ended September 30,
	2021	2020	2021	2020
Interest income on financial assets carried at amortized cost:
Tax free bonds and Government bonds	38	35	76	69
Deposit with Bank and others	206	280	496	538
Interest income on financial assets carried at fair value through other comprehensive income:
Non-convertible debentures, certificates of deposit, and government securities	155	97	313	186
Income on investments carried at fair value through profit or loss:
Dividend income on liquid mutual funds	—	10	—	11
Gain / (loss) on liquid mutual funds and other investments	41	9	66	33
Income on investments carried at fair value through other comprehensive income	—	27	—	54
Exchange gains / (losses) on foreign currency forward and options contracts	133	307	56	354
Exchange gains / (losses) on translation of foreign currency assets and liabilities	(81)	(262)	47	(294)
Miscellaneous income, net	32	67	92	95
Total other income	524	570	1,146	1,046

2.18 EXPENSES

Accounting policy

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 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 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 net profit in the Consolidated Statement of Profit and Loss.

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.

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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Employee benefit expenses
Salaries including bonus	15,160	12,978	29,808	26,166
Contribution to provident and other funds	385	270	734	559
Share based payments to employees (Refer to Note 2.11)	99	98	209	174
Staff welfare	99	54	222	105
	15,743	13,400	30,973	27,004
Cost of software packages and others
For own use	366	309	709	600
Third party items bought for service delivery to clients	1,027	799	1,973	1,401
	1,393	1,108	2,682	2,001
Other expenses
Repairs and maintenance	259	324	533	669
Power and fuel	31	37	64	71
Brand and marketing	102	93	216	152
Short-term leases	15	14	32	39
Rates and taxes	65	59	128	114
Consumables	36	26	68	50
Insurance	34	36	76	66
Provision for post-sales client support and others	34	(7)	35	(1)
Commission to non-whole time directors	3	2	5	3
Impairment loss recognized / (reversed) under expected credit loss model	44	63	87	162
Contributions towards Corporate Social responsibility	115	140	260	260
Others	85	(41)	135	41
	823	746	1,639	1,626

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 ("the Rules"), the Company intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary Infosys Green Forum established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.

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.

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 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.

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 September 30, 2021:

					(In ₹ crore)
Particulars
	Land	Buildings	Vehicles	Computers	Total
Balance as of July 1, 2021	631	3,716	19	194	4,560
Additions*	—	205	—	54	259
Deletions	—	(2)	—	(18)	(20)
Depreciation	(2)	(164)	(3)	(16)	(185)
Translation difference	—	(17)	—	2	(15)
Balance as of September 30, 2021	629	3,738	16	216	4,599

* Net of adjustments on account of modification

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

					(In ₹ crore)
Particulars	Category of ROU asset
	Land	Buildings	Vehicles	Computers	Total
Balance as of July 1, 2020	625	3,285	20	67	3,997
Additions	7	377	1	2	387
Deletions	—	(32)	—	—	(32)
Depreciation	(2)	(147)	(2)	(4)	(155)
Translation difference	1	(4)	—	1	(2)
Balance as of September 30, 2020	631	3,479	19	66	4,195

Following are the changes in the carrying value of right of use assets for the six months ended September 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*	—	64	1	100	165
Deletions	—	(6)	—	(18)	(24)
Depreciation	(4)	(319)	(5)	(29)	(357)
Translation difference	3	15	1	2	21
Balance as of September 30, 2021	629	3,738	16	216	4,599

* Net of adjustments on account of modification

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

					(In ₹ crore)
Particulars			Category of ROU asset
	Land	Buildings	Vehicles	Computers	Total
Balance as of April 1, 2020	626	3,485	15	42	4,168
Additions	7	360	9	32	408
Deletions	—	(90)	—	—	(90)
Depreciation	(3)	(292)	(5)	(8)	(308)
Translation difference	1	16	—	—	17
Balance as of September 30, 2020	631	3,479	19	66	4,195

The aggregate depreciation expense 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
	September 30, 2021	March 31, 2021
Current lease liabilities	788	738
Non-current lease liabilities	4,356	4,587
Total	5,144	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.

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.

2.21 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	September 30, 2021	March 31, 2021
Contingent liabilities :
Claims against the Group, not acknowledged as debts(1)	4,385	4,061
[Amount paid to statutory authorities ₹5,083 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)	987	733
Other commitments*	33	42

* Uncalled capital pertaining to investments

(1) As at September 30, 2021, claims against the Group not acknowledged as debts in respect of income tax matters amounted to ₹3,771 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 ₹5,074 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 six months ended September 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.
• Simplus Europe, Ltd., a wholly-owned subsidiary of Outbox Systems Inc., has been liquidated effective July 20, 2021.
• Stater GmbH, a wholly-owned subsidiary of Stater N.V., was incorporated on August 4, 2021.
• Infosys Green Forum, a wholly-owned subsidiary of Infosys Limited, was incorporated on August 31, 2021.
• Infosys Consulting (Shanghai) Co., Ltd., a wholly-owned subsidiary of Infosys Consulting Holding AG, has been liquidated effective September 01, 2021.
• Sqware Peg Digital Pty Ltd, a wholly-owned subsidiary of Simplus Australia Pty Ltd, has been liquidated effective September 02, 2021.
• Beringer Commerce Inc. renamed as Blue Acorn iCi Inc.

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 September 30,		Six months ended September 30,
	2021	2020	2021	2020
Salaries and other employee benefits to whole-time directors and executive officers (1)(2)	36	38	73	71
Commission and other benefits to non-executive/independent directors	3	2	5	3
Total	39	40	78	74

(1)For the three months ended September 30, 2021 and September 30, 2020 includes a charge of ₹17 crore and ₹19 crore, respectively, towards employee stock compensation expense. For the six months ended September 30, 2021 and September 30, 2020 includes a charge of ₹34 crore and ₹36 crore, respectively, towards employee stock compensation expense. (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

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.

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 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 September 30, 2021 and September 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	9,566	4,330	3,668	3,501	3,219	2,511	2,103	704	29,602
	7,871	3,651	3,093	3,027	2,241	2,244	1,672	771	24,570
Identifiable operating expenses	5,346	2,102	2,213	1,866	1,886	1,507	1,196	571	16,687
	4,055	1,733	1,828	1,553	1,153	1,260	827	512	12,921
Allocated expenses	1,576	725	639	618	609	385	319	213	5,084
	1,456	618	602	649	433	315	280	213	4,566
Segment operating income	2,644	1,503	816	1,017	724	619	588	(80)	7,831
	2,360	1,300	663	825	655	669	565	46	7,083
Unallocable expenses									859
									855
Other income, net (Refer to Note 2.17)									524
									570
Finance cost									48
									48
Profit before tax									7,448
									6,750
Income tax expense									2,020 1,892
Net Profit									5,428
									4,858
Depreciation and amortization									859
									855
Non-cash expenses other than depreciation and amortization									—
									—

Six months ended September 30, 2021 and September 30, 2020:

									(In ₹ crore)
Particulars	Financial Services (1)		Retail (2) Communic ation (3)	Energy, Utilities, Resources	Manufactu ring	Hi-Tech	Life Sciences (4)	All other segments (5)	Total
				and
Revenue from operations	18,783	8,505	7,071	Services 6,871	5,922	4,821	3,994	1,531	57,498
	15,328	7,043	6,257	6,054	4,497	4,307	3,246	1,502	48,234
Identifiable operating expenses	10,659	4,099	4,293	3,620	3,424	2,888	2,213	1,053	32,249
	7,959	3,326	3,730	3,106	2,436	2,388	1,626	979	25,550
Allocated expenses	3,122	1,421	1,255	1,213	1,148	747	622	459	9,987
	3,008	1,368	1,243	1,272	901	651	581	456	9,480
Segment operating income	5,002	2,985	1,523	2,038	1,350	1,186	1,159	19	15,262
	4,361	2,349	1,284	1,676	1,160	1,268	1,039	67	13,204
Unallocable expenses									1,687
									1,611
Other income, net (Refer to Note 2.17)									1,146
									1,046
Finance cost									98
									96
Profit before tax									14,623
									12,543
Income tax expense									3,994
									3,412
Net Profit									10,629
									9,131
Depreciation and amortization expense									1,687
									1,611
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 for the three months and six months ended September 30, 2021 and September 30, 2020, respectively.

2.24 FUNCTION WISE CLASSIFICATION OF CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS

					(In ₹ crore)
Particulars	Note No.	Three months ended September 30,		Six months ended September 30,
		2021	2020	2021	2020
Revenue from operations	2.16	29,602	24,570	57,498	48,234
Cost of Sales		19,806	15,771	38,312	31,473
Gross profit		9,796	8,799	19,186	16,761
Operating expenses
Selling and marketing expenses		1,235	1,136	2,483	2,283
General and administration expenses		1,589	1,435	3,128	2,885
Total operating expenses		2,824	2,571	5,611	5,168
Operating profit		6,972	6,228	13,575	11,593
Other income, net	2.17	524	570	1,146	1,046
Finance cost		48	48	98	96
Profit before tax		7,448	6,750	14,623	12,543
Tax expense:
Current tax	2.15	1,987	1,763	3,923	3,084
Deferred tax	2.15	33	129	71	328
Profit for the period		5,428	4,858	10,629	9,131
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset, net		14	7	(19)	154
Equity instruments through other comprehensive income, net		40	(5)	41	(6)
		54	2	22	148
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net		6	27	11	21
Exchange differences on translation of foreign operations, net		(166)	21	124	185
Fair value changes on investments, net		55 (105)	(45) 3	93 228	9 215
Total other comprehensive income / (loss), net of tax		(51)	5	250	363
Total comprehensive income for the period		5,377	4,863	10,879	9,494
Profit attributable to:
Owners of the Company		5,421	4,845	10,616	9,078
Non-controlling interests		7	13	13	53
		5,428	4,858	10,629	9,131
Total comprehensive income attributable to:
Owners of the Company		5,375	4,847	10,866	9,434
Non-controlling interests		2	16	13	60
		5,377	4,863	10,879	9,494

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

D. Sundaram Nilanjan Roy Jayesh Sanghrajka

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

Bengaluru October 13, 2021