Integrated Annual Report 2022-23

NAVIGATING CHANGE AT THE PACE OF AI
The context surrounding
an enterprise, created,
and influenced by multiple
inherently uncertain forces, cansignificantly impact the fortunesof a business. While this volatility
has come to be expected as normal,
not every business emerges from it having
tackled the situation with the same resilience.
Those that get a head start in preparing and taking
on the challenges are also the ones that come out of theuncertainty with the ability to outperform in the recovery.
That does not necessarily mean rethinking one’s businessstrategy, but rather rearticulating it to adapt. It’s reallyabout being judicious where to lean in and where to pullback. In essence, it’s about protecting one’s capability
to innovate and propel forward while being deeply
disciplined when it comes to operations. Digitallytransformed companies have a distinct advantage here.
They can drive frictionless business throughout the supply
chain, serve customers at lower costs, and avoid resourceintensive IT upgrades, unlike the digitally disadvantaged
who may have to wait for economic conditions to improve
before they can make progress.
Advanced technologies – especially AI in tandem withcloud – are creating performance opportunities that arereshaping these dynamics in significant ways. They are
helping companies to amplify human potential to take

Infosys Integrated Annual Report 2022-23

on higher value work, boost people productivity andrapidly create business value. From unlocking efficiencies
at scale and empowering the ecosystem to accelerating
growth, cognitively capable companies are unshackling
intelligence from data for experimentation as well as
the scale-out of AI to power greater efficacy and create
disruptive revenue streams.
Infosys is taking the AI-first approach to its own
transformation. We are bringing the power of AI, analytics,
and cloud to accelerate our own enterprise transformation,even as we build incremental value from micro-changes,
to improve client service, reimagine business processes,
and boost productivity. Nearly 50,000 reusable intelligent
services, applied in over 25,000 instances, are amplifying
our employees to boost their productivity.
It is Infosys TopazTM – our AI-first services using generative
AI – that’s making it all possible. Both for us and our clients.
Today, 12,000+ AI use cases and 150+ pre-trained AI
models delivered by AI-first specialists and data strategists
are accelerating business value for enterprises the world
over. All this, while ensuring uncompromising ethics, trust,
privacy and compliance, and security of data and AI.
You’ll no doubt catch interesting glimpses of these exciting
possibilities and progress in this Integrated Annual Report.
It’s the same potential we see too, to help our clientsnavigate change and move into a future filled with morepotential, and more shared advances.

3

BOOKING HOLDINGS: BOOSTING THE RISK-RESILIENCE OF
BUSINESS
E-commerce fraud has evolved and increased withthe surge in online commerce since the pandemic.
Bad actors are launching more sophisticated attacks.
E-commerce losses to online payment fraud were
estimated at US$41 billion globally in 2022, making
cybersecurity an utmost priority for all digitalcompanies.
Booking Holdings is the world’s leading providerof online travel and related services, offered toconsumers and local partners in more than 220
countries and territories through six primaryconsumer-facing brands: Booking.com, Priceline,
Agoda, Rentalcars.com, KAYAK and OpenTable.
Booking Holdings’ mission is to make it easier for
everyone to experience the world.
Across their operations, Booking Holdings’ brands
have always been keen to ensure comprehensive
security powered by next-gen technology. To realize
this, the company teamed up with Infosys to ramp

up a Center of Excellence in Bucharest, Romania.
The Center delivers services across critical business
functions in cybersecurity, fraud management
and analytics and TRAC (Trust, Risk, Assurance andCompliance). It also delivers services for financial
systems development and support, IT development
and support, application security, risk management,
audit management and account security consultancy.
Infosys TopazTM AI-first solution plays a key role herein making these services truly cognitive. This initiative
is driving improved speed to market, more innovative
thinking and consistently rewarding businessoutcomes for brands like Booking.com.
Efforts at Infosys strengthen this collaboration tobuild innovative solutions in the travel domain.
Infosys is also looking to continuously upskill its
project team to build exceptional skill sets that can beleveraged to build these focused solutions.

‘’Modern enterprises, with their digital footprint expanding past
traditional perimeters, are increasingly susceptible to cybersecurity
attacks. To be cyber-resilient, enterprises must embed security bydesign and operational measures to adequately protect products andservices. To do this, they need to embrace AI-first threat management
solutions. We have successfully adopted this approach at Booking
Holdings and for our brands working collaboratively with Infosys.’’
Spencer Mott

Chief Security Officer – Booking Holdings & Booking.com

ACCELERATING THE AI-FIRSTJOURNEY FOR YOUR ENTERPRISE
4

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

5

MOLINA HEALTHCARE: MAXIMIZING VALUE FROM CLOUDINVESTMENTS
Digital transformation of enterprises today is also
leading to data and AI transformation of businesses
bringing powerful capabilities to non-technicalusers in the world of healthcare. Cloud remains a key
foundational capability necessary to accelerate value
generation on this journey.
Molina Healthcare, a FORTUNE 500 company,
provides managed healthcare services under the
Medicaid and Medicare programs and throughthe state insurance marketplace. Through locallyoperated health plans, Molina Healthcare serves
approximately 5.1 million Americans.

ACCELERATING THE AI-FIRSTJOURNEY FOR YOUR ENTERPRISE

From first starting their cloud journey to enable
exponential efficiencies, Molina Healthcare has longsince evolved it to become a key driver of revenue
for businesses through the creation of cognitive
capabilities. That’s why, leveraging Infosys CobaltTM –cloud services and solutions, for Molina Healthcare,
has also meant creating a foundation with readyaccess for business users.

Molina Healthcare is committed to providing a wide
range of quality healthcare services to families andindividuals who qualify for government-sponsoredprograms. Today, running business operations,
including their mission critical systems, with dataand AI-powered capabilities on the cloud, has given
Molina Healthcare a first-mover advantage that few
others enjoy. Better business scalability and resilience
have improved the experience for their members.
Growth, for the business, is accelerated by adding
more participants from new untapped states. Time toonboard these participants and costs to provide themcare have significantly reduced, thereby boosting
profitability.
But perhaps, most significantly, this cloud-firstjourney that Molina Healthcare is on has reinforced
the company’s ability to realize its purpose – toimprove the lives and well-being of its members,
while making a positive impact in the communities
they serve.

‘’Growing our cloud capabilities has been integral to our digitaltransformation. We also know that continuing to strengthen thesecapabilities is the way for us to become an AI-first enterprise that will
enable to service our members seamlessly. Infosys is a trusted partner
for us on this journey.’’
Amir Desai

CIO, Molina Healthcare

6

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

7

SIEMENS: BOOSTING THE EFFICIENCIES OF WORKFORCELEARNING
As companies seek to extend market leadership, skills
for their employees, especially in new technology
capabilities like generative AI, IoT, cybersecurity andadditive manufacturing, are becoming vital for longterm success. Building efficiencies into the learning
path for organization-wide upskilling and reskilling ishigh on the list of focus areas for business leadership.

ACCELERATING THE AI-FIRSTJOURNEY FOR YOUR ENTERPRISE

With a rich history spanning over 175 years, Siemens
is a German multinational technology company
and one of the largest engineering companies in
the world. Staying ahead of the technology curve iscritical for Siemens to retain its leadership. This makes
rapid and effective upskilling of its large, diverse andgeographically spread workforce imperative.
Partnering with Infosys and leveraging Infosys
Wingspan, AI-first learning and talent transformation
platform, Siemens has reimagined its approach to
upskilling and learning. Infosys Wingspan draws
on Infosys TopazTM to bring in robust AI, including
generative AI capabilities. With Infosys, Siemens’
enterprise learning has stepped firmly into thedigital age – leading to the inception of My LearningWorld harnessing Infosys Wingspan. It is the single
entry point into digital learning and the gateway
to personal upskilling and reskilling at scale for
Siemens employees, with AI to monitor and predictlearning, simultaneously acting as the digital brainof the company.

My Learning World is amplified with AI-poweredalgorithms that deliver a strong nudge framework
to integrate learning actively into the performance
culture of the organization. AI is also helping deeply
personalize the upskilling journey for learners. The
cognitive core of My Learning World also allows
leaders to track the progress that learners make andcontinuously refocus efforts and content to deliver
improved outcomes.
As the exploration of generative AI tools for theplatform intensifies, the promise to make the learningjourney richer and more engaging is becoming real.
Some key generative AI-driven features include
automatic content generation, automatic creationof learning objectives and AI-powered learningassistants. Applying AI to the data from this platform
gives Siemens key insights into the learning habits
and skill trends, enhances search quality and learning
experience. And the results are encouraging –My Learning World is the fourth most used platform
across Siemens, recording six million hours oflearning in total in fiscal 2022.
This AI-first journey to efficiently enhance theirdigital skill quotient is helping Siemens foster aculture of lifelong learning. It is enabling them tobuild a resilient workforce that can adapt to rapid
technological changes in the industry.

‘At Siemens, we want to support our people in staying relevant ina permanently changing environment by continuously evolving
functional and technical skills. Digitalization, with an AI-first approach,
is at the core of our strategy for the future. We are excited to have foundan effective partner in Infosys who can support us to bring greater
efficiencies to our employees’ learning and growth journey with My
Learning World. This is an important partnership for Siemens, and welook forward to continuing to build on these learning experiences forour employees.”
Daniela Proust

Senior Vice President, Head of Global Learning and Growth at Siemens

8

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

9

WSP: REDESIGNING BUSINESS OPERATIONS WITH INSIGHTS
Digitalization is both the force and the force
multiplier for the engineering sector to navigate
their next while planning, designing, managing, andengineering communities to thrive.
WSP is one of world’s leading engineering andprofessional services firms, developing creative,
comprehensive, and sustainable solutions for the
future. Equipped with an intimate understandingof local intricacies, world-class talent and proactive
leadership, the company plans, designs, andengineers solutions to uniquely complex problems.
Their partnership with Infosys will be enabling WSP’s
enterprise-wide internal digital transformation acrossall core processes including project and portfolio
management, sales, procurement, finance, andhuman capital management. The outcome WSP
aspires to, is the creation of an agile, responsive,and unified organization that works synergistically
across their various entities and markets. The goal is
to continue to improve win ratios, cash flows, drive
efficient project management, talent management,book closures and help onboard seamless integrationof new entities. This will require undertaking
large-scale business process transformation with

underlying agile cloud-led technologies to equip
various personas, including the project manager,
with better insights for informed decision making.
The project commenced by implementing a global
blueprint to addresses challenges around uniqueindustry-specific business processes, providing for arobust business architecture and delivering intuitive
user experiences for all key stakeholders. Oracle ERP
cloud was chosen as the underlying cloud platform
with bolt-on extensions and intelligent automation
to support insights-led business redesign. The
solution drew support from a strong automation, andembedded analytics backbone to deliver a unified
system with deep visibility and control.
WSP, in partnership with Infosys, has completed thefirst deployment in Canada, one of the key regions.
Plans are now afoot to implement in the US, UK andultimately all global regions. This will enable WSP
to continue to drive strong project managementwith trackable schedule and budget adherence,streamlined flow of talent, effective managementof the sales pipeline, optimized pricing techniquesalong with excellent risk management and controls.

“From improving planning, to impacting operational efficiency andpersonnel training, insights-driven digital transformation is key to ourstrategy to smoothly solve complex engineering challenges. This alsooffers a way to continuously improve and prepare for a wide range ofbusiness scenarios. We are glad to have Infosys partner with us in theseendeavors.’’

MAKING
BUSINESSESSMARTER

Chadi Habib

Chief Technology Officer and Head of Business Solutions, WSPACCELERATING THE AI-FIRSTJOURNEY FOR YOUR ENTERPRISE
10

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

11

MS AMLIN: INSIGHTS TO NAVIGATE FROM RISK MANAGEMENTTO STRATEGIC RESILIENCE
Organizations in the insurance industry have recently
been severely targeted by threat actors due to thehuge volume of personally identifiable informationand sensitive customer financial data. To date, morethan 100 million users have had their personallyidentifiable information compromised in this sector,
making cybersecurity an utmost priority.

ACCELERATING THE AI-FIRSTJOURNEY FOR YOUR ENTERPRISE

security, vulnerability management and governance,along with risk and compliance management. The
platform-centric approach for security tools andcontrols are embedded with cognitive AI-modeleduse cases and playbooks for advanced threat
detection and response.

MS Amlin is a leading insurer and reinsurer and is partof the global top-10 insurance group MS&AD, withthree main legal entities’ operating in the Lloyd’s, UK,
Continental European and Bermudian markets. With a
300-year record, MS Amlin delivers quality service forbusinesses facing the most complex and demanding
risks. Their areas of operation are mostly property &casualty, marine and reinsurance markets.

Identity is now a crucial aspect of cybersecurity;
if compromised, it can trigger many lethal server
attacks. Infosys has, for MS Amlin, mitigated the risk ofidentify management by implementing SSO – single
sign-on and reconciliation of privileged accounts.
Infosys has also helped implement multi-factor
authentication and privilege access managementwith industry-leading and best-of-breed products
and solutions.

MS Amlin has chosen Infosys as their cybersecurity
service provider to ensure comprehensive
security services powered by cognitive next-gen
security operations.

Network detection and response has also been
operationalized for MS Amlin to get deep anddetailed insights on the anomalies in theirenvironment.

Infosys offers enterprise-wide security controls
to secure MS Amlin’s IT estate, including identity
protection, network security, workplace and workload

Working in collaboration with MS Amlin, Infosys has
been able to protect the business from evolving
threats and elevate their security posture.

“Modern enterprises, with their digital footprint growing beyond
traditional perimeters, are becoming soft targets for cybersecurity
attacks. To be risk-resilient, enterprises must embed security bydesign and embrace next-gen cognitive threat management
solutions. MS Amlin and Infosys Cybersecurity are working
collaboratively to establish next-gen security operations forthreat monitoring and incident response orchestration based on
AI hypothesis.”
Andy Hodgson
CISO, MS Amlin

12

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

13

Contents
16

About this report

Corporate overview
18
19
20
26

About Infosys
Global presence
The Infosys Board of Directors
The Infosys leadership team

Performance overview
28
30
32
34

Business highlights
Chairman’s message
Letter to the ShareholderAwards and recognitions

Approaching value creation
38
40
42

Our business context
Strategy
Value creation model

Delivering value
44
46
48
50
52
54

Financial Capital
Human CapitalIntellectual Capital
Natural Capital
Manufactured CapitalSocial and Relationship Capital

Statutory reports
58
70
100
117
155
157
161
205

Board’s report
Annexures to the Board’s reportManagement’s discussion and analysis
Corporate governance report
Investor contacts
Risk management report
Business Responsibility and Sustainability Report
CEO and CFO certification

Financial statements
206
290

Standalone
Consolidated

For an interactive digital experience of the report, visit:https://www.infosys.com/content/dam/infosys-web/en/investors/reports-filings/
annual-report/annual/documents/integrated-annual-report2022-23/index.html
14

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

15

About this report
An introduction to the report
Infosys adopted the Global Reporting Initiative (GRI)
principles to disclose performance on non-financial
aspects of the business 15 years ago and became thefirst IT company to publish sustainability performancein accordance with the GRI G4 (comprehensive) criteria
in 2014.
This is the second Integrated Annual Report of Infosys
Limited. Our Integrated Annual Report provides acomprehensive overview of our company’s performanceand progress over the past year. It includes quantitativeand qualitative disclosures on material topics, such as
financial performance, environmental sustainability, social
responsibility, and our relationship with our stakeholders.
It also describes our strategy, leadership commitment andculture that celebrates people, performance and purpose.
The Infosys Integrated Annual Report 2022-23 has been
prepared in accordance with the International Integrated
Reporting Framework, developed by the International
Integrated Reporting Council (IIRC), the GRI Standard and
SASB Standard. This report also includes the BusinessResponsibility and Sustainability Report (BRSR), prepared inaccordance with the guidelines issued by the Securities andExchange Board of India (SEBI). We have also mapped ourcontribution to the Sustainable Development Goals (SDGs)
through the Infosys ESG Vision and ambitions.
The financial and statutory data disclosed in thestatutory sections of this report meet the requirementsof the Companies Act, 2013 (including the rules madethereunder) and applicable SEBI Regulations.

16

Our capitals
Auditors’ reports

The Auditors’ Report for fiscal 2023 from Deloitte Haskins& Sells LLP, Chartered Accountants (ICAI Firm Registration
Number 117366W/ W-100018) does not contain any
qualification, reservation or adverse remark. The Report is
enclosed with the financial statements in this Integrated
Annual Report.
The Secretarial Auditors’ Report for fiscal 2023 from
Makarand M. Joshi of Makarand M. Joshi & Co., Company
Secretaries, does not contain any qualification, reservation
or adverse remark. The Secretarial Auditors’ Report is
enclosed as Annexure 5 to the Board’s report.

Independent assurance

Select non-financial sustainability disclosures in thisIntegrated Annual Report are verified by KPMG Assurance
and Consulting Services LLP. The Independent AssuranceStatement for our BRSR disclosures is available as part ofthis Integrated Annual Report.

Management’s review

The capitals, as described below, provide a holistic perspective of how short, medium and long-term value is createdand preserved at Infosys. The capitals are simultaneously inter-dependent and mutually beneficial as they createsynergy across the organization. Our strategy and ESG framework help to channel all inputs through the capitals to
manifest into the most impactful outputs and outcomes for all stakeholders.

Financial Capital

Human CapitalIntellectual Capital

We obtain our Financial Capital throughthe funds generated from our business
operations and financing activities.
Our strong performance on the backof meticulous execution over the years,
as reflected in the combination ofhigh growth and profitability, has led
to building a strong, debt-free, andliquid Balance Sheet. Our focus is on
ensuring a sustainable and profitablefinancial position.

Nurturing talent for the future isessential for our continued success.
Our 5C model for Engagement –Connect, Collaborate, Celebrate, Care,and Culture, is designed to strengthen
and reinforce our culture so that it isexperienced uniformly and positively
by employees – remote or in office.
We have long-established paths for
employee upskilling and reskilling, andour efforts have been well rewarded,
providing value to our people and us.

Our Intellectual Capital is driven by
agility, flexibility, and innovation.
We are committed to working
with experts, academia, and otherstakeholders to develop new products
and services that meet the needsof our customers and communities.
With iCETS, the Living Labs, and theInfosys Innovation Network, we havea broad portfolio of solutions acrossindustry segments. The Infosys Prize
and Aarohan Social Innovation awards
recognize outstanding achievementsby researchers and scholars and provide
a platform for innovators and social
entrepreneurs, respectively.

Natural Capital

Manufactured Capital

Climate action has been a key focus
area for our Natural Capital. We havebeen at the forefront of the ESG
movement and became carbonneutral in 2020 – 30 years ahead of thetimeline set by the Paris Agreement.
Today, we incorporate environmental
considerations into everything that wedo, as we power the journey towards asustainable world for all.

As strong advocates of environmental
stewardship extending beyond
our boundaries, our Manufactured
Capital includes our energy efficient
offices, data centers, innovation hubs,
digital studios, and our technology
infrastructure across the globe. With
the highest-rated green buildings
on our campuses and investments
in collaborative tech infrastructure,
we offer productive, safe and healthy
workplaces for employees, clients andcontractors.

Social and Relationship
CapitalThis Integrated Annual Report has been reviewed andapproved, for publication, by the Management of theCompany.

Feedback
Share your feedback about the report toinvestors@infosys.com

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Our Social and Relationship Capital
guides us as we bring the interestsof our stakeholders to the fore. As
enterprises focus on reshaping
their businesses to prepare for thedigital era, we are helping our clientsdrive transformation and sustain
gain from their large-scale business
transformation efforts. Our Foundations
focus on CSR efforts globally acrossthe domains of education, healthcare,women empowerment, sustainability,
rural development, art and culture,and disaster relief. Our social ambition
focuses on serving the developmentof people by shaping a future withmeaningful opportunities for all.

17

Corporate overview

18

Infosys Integrated Annual Report 2022-23

No. of offices*as of May 29, 2023

Mauritius

9.9%

2.6%

Rest of the World

India

25.7%
Europe2022-23

Chile

Argentina

Brazil274
56

No. of countries

New ZealandAustralia
Singapore

Costa Rica

MexicoPeru

Infosys Integrated Annual Report 2022-23

61.8%

Total revenues in fiscal 2023

North America`1,46,767 cr

Philippines

Puerto Rico

To be objective and transactionoriented, and thereby earn trust
and respect

To strive relentlessly, constantly
improve ourselves, our teams, ourservices and products to become
the best

Malaysia

Hong Kong
India
Qatar

Fairness

Excellence

South Africa

TurkeyIreland
Belgium
Luxembourg
Germany
FrancePortugal
Liechtenstein
Malta
Italy
Hungary
Slovakia
Switzerland
SerbiaBulgaria
Spain

NorwayIsraelFinlandSwedenLatviaLithuania
Czech Republic
PolandAustria
Croatia
Romania
Armenia
Denmark
Netherlands
UK

To be ethical, sincere and open in
all our transactions

Regions

Active clients

Integrity and transparency

USA

1,872

To set standards in our businessand transactions and be an
exemplar for the industry andourselves

CanadaEmployees

Leadership by example

Revenue by geography

In our journey of over 40 years, wehave catalyzed India’s transformation
into the global destination forsoftware services talent. We

3,43,234

To surpass client expectations
consistently

Countries where we operate

Established in 1981, from a capital of
US$250, we have grown to become acompany with a market capitalizationof approximately US$72.35 billion.

Even as Infosys first turned carbon
neutral in 2020 – 30 years ahead of
the 2050 timeline set by the Paris
Agreement, we articulated our ESG
Vision 2030, stating our commitment
to shape and share solutions thatserve the development of businesses
and communities. This reaffirms
our long-standing commitments
focused across core areas including
climate change, technology for
good, diversity and inclusion,energizing local communities, ethics
and transparency, data privacy andinformation management.

Client value

Global presence*With over four decades of experiencein managing the systems andworkings of global enterprises,
we expertly steer clients, as theynavigate their digital transformation
powered by the cloud. We enable
them with an AI-powered core,empower the business with agile
digital at scale and drive continuous
improvement with always-on
learning through the transfer ofdigital skills, expertise, and ideas
from our innovation ecosystem.
We are deeply committed to being
a well-governed, environmentally
sustainable organization where
diverse talent thrives in an inclusive
workplace.

pioneered the Global Delivery Modeland became the first IT company
from India to be listed on NASDAQ.

Corporate overview

Infosys is a global leader in nextgeneration digital services andconsulting. We enable clients in morethan 56 countries to navigate theirdigital transformation.

China

Our Company’s Code of Conduct
stands on the strong foundation
set by our values, encapsulated in
the acronym C-LIFE.

Saudi Arabia UAE

Our Values

TaiwanSouth Korea

Japan

To amplify human potential
and create the next
opportunity for people,
businesses and communities

Infosys began its operations in a small apartment office in Pune,
India, in 1981. Today, we have offices across six continents.

Our Purpose

For details of our global locations, visit
https://www.infosys.com/investors/reports-filings/documents/global-presence2023.pdf

About Infosys

19

Corporate overview

The Infosys Board of Directors
Note: The Board and Committee composition is as of March 31, 2023.

Nandan M. Nilekani
Chairman

Salil Parekh

Chief Executive Officer and Managing Director

Bobby Parikh

Chitra Nayak

Independent Director

Independent Director

Chairperson
Audit Committee

Chairperson
Environmental, Social and Governance Committee

MemberRisk Management Committee
Stakeholders Relationship Committee

MemberCorporate Social Responsibility Committee
Risk Management Committee
Stakeholders Relationship Committee

D. Sundaram

Michael Gibbs

Govind Iyer

Uri Levine

Chairperson
Nomination and Remuneration Committee
Risk Management Committee

Chairperson
Stakeholders Relationship Committee
Cybersecurity Risk Sub-committee

Chairperson
Corporate Social Responsibility Committee

MemberAudit Committee
Stakeholders Relationship Committee
Cybersecurity Risk Sub-committee

MemberAudit Committee
Nomination and Remuneration Committee
Risk Management Committee

MemberNomination and Remuneration Committee
Environmental, Social and Governance Committee
Risk Management Committee
Cybersecurity Risk Sub-committee

MemberCorporate Social Responsibility Committee
Environmental, Social and Governance Committee
Risk Management Committee
Cybersecurity Risk Sub-committee

Lead Independent Director

20

Independent Director

Independent Director

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Independent Director** Retired on April 19, 2023

21

The Infosys Board of Directors
Nandan M. Nilekani

Date of appointment
August 24, 2017
Tenure on Board
5.6 years
Term ending date
NA

Chairman and Non-Executive and
Non-Independent Director (Promoter)

D. Sundaram

Age: 67
Nationality: Indian

Age: 70
Nationality: Indian

Board memberships – Indian listed companies
Infosys Limited: Non-Executive and
Non-Independent Director
Committee details (1)(2)
Member: Nil
Chairperson: Nil

Shareholding
4,07,83,162 shares (0.98%)

Lead Independent Director

Areas of expertise• Financial• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Read full profile at: https://www.infosys.com/about/management-profiles/nandan-nilekani.html

Date of appointment
July 14, 2017
Date of reappointment
July 14, 2022
Tenure on Board
5.7 years
Term ending dateJuly 13, 2027

Committee details (1)(2)
Member: 5
Chairperson: 2

Shareholding
Nil

Chief Executive Officer andManaging Director

Michael Gibbs

Age: 58
Nationality: Indian

Age: 65
Nationality: American

Date of appointment
January 02, 2018

Board memberships – Indian listed companies
Infosys Limited: Executive Director

Date of reappointment
July 01, 2022

Committee details (1)(2)
Member: Nil
Chairperson: Nil

Term ending date
March 31, 2027
Shareholding
7,86,658 shares (0.02%)

Areas of expertise• Financial• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sustainability & ESG• Risk management• Mergers & Acquisitions

Read full profile at: https://www.infosys.com/about/management-profiles/d-sundaram.html

Salil Parekh

Tenure on Board
5.2 years

Board memberships – Indian listed companies
Infosys Limited: Independent Director
Crompton Greaves Consumer Electricals Limited:
Independent Director
GlaxoSmithKline Pharmaceuticals Limited:
Independent Director

Independent Director

Areas of expertise• Financial• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Date of appointment
July 13, 2018
Date of reappointment
July 13, 2021
Tenure on Board
4.7 years

Board memberships – Indian listedcompanies
Infosys Limited: Independent Director
Committee details (1)(2)
Member: 2
Chairperson: 1

Term ending dateJuly 12, 2026
Shareholding
Nil

Areas of expertise• Financial• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Read full profile at: https://www.infosys.com/about/management-profiles/salil-parekh.html

Read full profile at: https://www.infosys.com/about/management-profiles/michael-gibbs.html

1.

In the committee details provided, every chairpersonship is also considered as a membership.

1.

In the committee details provided, every chairpersonship is also considered as a membership.

2.

For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20152.

For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are

considered.
3.

22

considered.

Details are as of March 31, 2023.

3.

Infosys Integrated Annual Report 2022-23

Details are as of March 31, 2023.

Infosys Integrated Annual Report 2022-23

23

The Infosys Board of Directors

Bobby Parikh

Govind Iyer

Age: 59
Nationality: Indian

Age: 60
Nationality: Indian

Independent Director

Date of appointment
July 15, 2020
Tenure on Board
2.7 years
Term ending dateJuly 14, 2023
Shareholding
6,887 shares (0.00%)

Board memberships – Indian listed companies
Infosys Limited: Independent Director
Biocon Limited: Independent Director
Indostar Capital Finance Limited: Independent
Director
Committee details (1)(2)
Member: 7
Chairperson: 4

Independent Director

Areas of expertise• Financial• Diversity• Global business• Leadership• Information Technology• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Date of appointment
January 12, 2023

Board memberships – Indian listed companies
Infosys Limited: Independent Director

Tenure on Board
0.2 years

Committee details (1)(2)
Member: Nil
Chairperson: Nil

Term ending date
January 11, 2028
Shareholding
991 shares (0.00%)

Read full profile at: https://www.infosys.com/about/management-profiles/govind-iyer.html

Read full profile at: https://www.infosys.com/about/management-profiles/bobby-parikh.html

Chitra Nayak

Uri Levine

Age: 60
Nationality: American

Age: 58
Nationality: Israeli

Independent Director

Date of appointment
March 25, 2021

Board memberships – Indian listed companies
Infosys Limited: Independent Director

Tenure on Board
2 years

Committee details (1)(2)
Member: 1
Chairperson: Nil

Term ending date
March 24, 2024
Shareholding
Nil

Areas of expertise• Diversity• Global business• Leadership• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management

Independent Director

Areas of expertise• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Date of appointment
April 20, 2020

Board memberships – Indian listed companies
Infosys Limited: Independent Director

Tenure on Board
2.9 years

Committee details (1)(2)
Member: Nil
Chairperson: Nil

Term ending date
April 19, 2023
Shareholding
Nil

Areas of expertise• Diversity• Global business• Leadership• Information Technology• Cybersecurity• Board service & governance• Sales & marketing• Sustainability & ESG• Risk management• Mergers & Acquisitions

Read full profile at: https://www.infosys.com/about/management-profiles/chitra-nayak.html

Read full profile at: https://www.infosys.com/campaigns/profile-uri-levine.html

1.

In the committee details provided, every chairpersonship is also considered as a membership.

1.

In the committee details provided, every chairpersonship is also considered as a membership.

2.

For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20152.

For the purposes of determination of committee details as per Regulation 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are(“Listing Regulations”), membership and chairpersonship of only the audit committee and the stakeholders relationship committee across all public companies are

considered.
3.

24

considered.

Details are as of March 31, 2023.

3.

Infosys Integrated Annual Report 2022-23

Details are as of March 31, 2023.

Infosys Integrated Annual Report 2022-23

25

Corporate overview

The Infosys leadership team*

Salil Parekh

Nilanjan Roy

Chief Executive Officer and Managing
Director

Chief Financial Officer

Anand Swaminathan

Anant Raghavendra Adya

Segment Head – Communication,Media and Technology

Group Practice Engagement
Manager – Cloud Services

Anup Kapoor
Global Head Operations – IBPM

Andrew Groth

Martha King

Mohammed Rafee Tarafdar

Narsimha Rao Mannepalli

Rajeev Ranjan

Chief Executive Officer &Managing Director – IBPM

Industry Head – Financial Services,
Healthcare, Insurance andLife Sciences

Chief Client Officer

Chief Technology Officer,
Global Delivery

Co-Head of Delivery, Infosys

Service Offering Head –Manufacturing, India & Japan
Business Units

Arun Kumar H.R.

Ashiss Kumar DashBalakrishna D.R.

Rajesh Varrier

Richard Lobo

Ruchir Budhwar

Satish H.C.

Head – Business Strategy, Planningand Operations

Segment Head – Energy, Utilities,
Resources and Services

Service Offering Head – Energy,
Utilities, Communications, Resources& Services, AI and Automation

Service Offering Head and Head –Americas Operations

Head, HR – Infosys Limited

Industry Head, Manufacturing

Co-Head of Delivery, Infosys

Deepak Bhalla

Dennis Kantilal Gada

Dinesh R.

Hemant Lamba

Shaji Mathew

Sumit Virmani

Sunil Kumar Dhareshwar

Umashankar Lakshmipathy

Chief Risk Officer & Global Head –Business Finance and Operations
PlanningIndustry Head, Financial Services

Co-Head of Delivery, Infosys

Head – Strategic Global Sourcing

Group Head – Human Resources

Chief Marketing Officer

Global Head – Corporate Accounting& Taxation and Group Head –Facilities, Infrastructure and Security

Group Practice Engagement
Manager, Cloud and Infrastructure
Services

Anantharaman Radhakrishnan*List as of May 29, 2023

Inderpreet Sawhney

Jasmeet Singh

Jayesh Sanghrajka

Karmesh Gul VaswaniGroup General Counsel andChief Compliance Officer

Segment Head – Manufacturing

Deputy Chief Financial Officer

Segment Head – CPG, Logistics& Retail

26

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

27

Performance overview

Business highlights

Infosys achieved industryleading revenue growth of
15.4% with healthy operating
margin of 21.0% for fiscal
2023. Our ESG Vision 2030 andambitions continue to drive
value for all our stakeholders.

Robust operating margin
Revenues₹1,46,767cr
20.7% growth Y-o-Y
15.4% CC growth Y-o-Y
Digital revenues(as a % of total revenue)

62.2%

25.6% CC growth Y-o-Y

Steady progress towards
gender diversity goals

114mn +

Buyback completed₹9,300cr

9.7% growth Y-o-Y

Improved by 2.1% overthe last fiscal

Consolidated cash andinvestments(2)₹31,286cr

Free cash~50,000

Scope 1, 2 and 3 emissions

Fresh graduates hired globally
Note:
(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.

(2)Comprise cash and cash equivalents, current and non-current investments excluding investments in unquoted equity and preference shares, and others.

Key trends

FCF conversion at 84.8% of net profit

In ₹ crore, except per equity share data

FY 2023

FY 2022

FY 2021

FY 2020

FY 2019

Revenues

1,46,767

1,21,641

1,00,472

90,791

82,675

Net profit

24,095

22,11019,351

16,594

15,404

Basic earnings per share (in ₹)(1)

57.63

52.52

45.61

38.97

35.44

Market capitalization

5,92,394

8,02,162

5,82,880

2,73,214

3,24,448

In US$ million, except per equity share data

FY 2023

FY 2022

FY 2021

FY 2020

FY 2019

18,212

16,311

13,561

12,78011,799

2,981

2,963

2,613

2,331

2,199

0.71

0.70

0.62

0.55

0.51

72,351

104,706

79,76034,966

47,614(1)

9.8b

Sustained momentum in large
deal wins continues

9.7% growth Y-o-Y

Rural families continue to benefit₹ 20,443cr

$

34.0

2,40,000+

People are a part of our digitalskilling initiatives(1)

Large deal TCV(Total contract value in US$ billion)

Dividend per share (in ₹)Carbon offset programs

Carbon neutral for
4 years in a row

Return on equity

31.2%

8.5mn

Carbon neutrality

at an average price of ₹ 1,539.06

57.63

Digital skilling

Tech for Good

Basic earnings per share(par value of ₹ 5 each)Continue to main strong
liquidity position

28

39.4%

Lives empowered via our Tech forGood solutions in e-governance,
education and healthcare

Operating margin

21.0%

Women employees

Number of US$ 50 million + clients

75

Strong client metrics with increaseof 11 clients Y-o-Y
Infosys Integrated Annual Report 2022-23(1)(2)

Revenues(1)

Net profit(1)(2)

Basic earnings per share (in ₹)(1)Market capitalization
Notes:(1)

Based on IFRS consolidated financial statements(2)

Attributable to owners of the Company

Infosys Integrated Annual Report 2022-23

29

Performance overview

Chairman’s message
Navigating uncertainty
If there is one overriding theme that defines our current
world, it is that it is suffused with uncertainty. The placid
and the predictable are behind us as each new day brings
new inputs and new events that derail the carefully-craftedmodels we have constructed of the world around us. The
cocktail of inflation, interest rates, geopolitics, war, demand
volatility, supply chain dislocations, the shift from efficiency
to resilience and security, all stirring quickly and without
warning, is what’s before us. In any week, we may oscillate
from caution to optimism and back to caution based on
the news of the day.
Such times of intense uncertainty, great short-termpressure, and crunched resources require that companies
must become better, more efficient in their ability to beresilient in the present while also securing their future
growth. This is easier said than done. The extreme volatility
that surrounds us creates so many probable future states,that it simply isn’t prudent for businesses to plan tosucceed in any one anticipated future scenario. Instead, weneed to develop the flexibility to be able to avoid limiting
choices, reduce concentration risk, quickly adapt, and learn
to thrive in any new reality.
The era of optionality is upon us.
Optionality can take various forms. In our IT infrastructure,
it is the ability to dynamically reconfigure the way wework – remotely, in office or hybrid. In the area of talent, it
is about building and deploying agile learning platforms
so that our people can hone their skill sets to matchnew demand and new technologies. It is about having a
digital-first and AI-first business architecture which canbe constantly configured. It is finding the right balance
between retaining the core of a company and working
with partners on others. Optionality must be ingrained instrategy and execution.
Our CEO, Salil Parekh, and his global leadership team,realized early on the value that advanced digitaltechnologies like AI and cloud, and more recently,
generative AI, can bring to imagine and execute formultiple options in the future. They came together as
One Infosys to orchestrate teams that lead the charge tocontinually transform Infosys into an organization that truly
realizes human-machine synergies, from fundamentallyrethinking organizational design to segmenting cognitive
tasks to get the right balance between people, technology,
and process. Today, Infosys is steadily progressing towards
a future where we don’t just solve immediate business30

problems, but continually innovate and architect for
challenges that may emerge in the future. We build it
for ourselves first, and then, deeply rooted in our own
experience, take it widely to our clients.
The awesome possibilities of generative AI, we know fromour own journey to becoming an AI-first enterprise, is notwithout its risks. The problems of AI hallucination, systemic
biases, lack of explainability along with plenty of practical,
ethical and intellectual property-related issues remain open
and up for debate. We also know, from our experience,that the path to scaling AI enterprise-wide is non-linear.
Often, organizations, seeking to mine value from data andAI models, successfully undertake pilots but fail to factor inwhat it will take to scale value across the whole enterprise.
As demands increase, data volumes grow, and complexity
rises, companies find themselves unable to surmount theassociated challenges and start to question the path tovalue. Navigating to value-at-scale from AI and retaining
the larger strategic vision while breaking down the tasks
into sequential small wins, is not always intuitive or simple.
With our AI-first strategy, Infosys is guided by that road
map. We are also bringing to our global clients the ability
to accelerate business value and amplify human potential
using AI technologies with Infosys TopazTM.
The digital transformation of every industry and every
business, over the last several years, has laid the foundation
to create optionality as we navigate the way forward.
Our clients have always trusted us to assist them not only
to make the right digital investments but to safeguard
these investments for their future. Today, we are excitedby the opportunity and humbled by the responsibility wehave to enable them to bring all their digital capabilities
together to execute quickly and effectively for now, whiledeveloping multiple options to amplify their competitive
advantage and market leadership in an uncertain future.
Our client relevance has never been so compelling, ourinvestment in employees as continuous and consistent,
and our purpose so keen. We are ready to co-create withour clients and our entire ecosystem a flexible future thatputs people first and benefits the broader society even as
it propels business forward. After all, like many have said,
imagination is our invisible power to create all things. Our
future can be as bright as we imagine it to be.
Bengaluru
May 29, 2023

Nandan M. Nilekani

Nandan M. Nilekani

ChairmanInfosys Integrated Annual Report 2022-23

ChairmanInfosys Integrated Annual Report 2022-23

31

Performance overview

Letter to the Shareholder
Dear shareholder,
Financial year 2023 was a strong year for our business.
In FY23, we saw growth of over 15%, operating margins
of 21%, and free cash flow of US$2.5 billion. Our attrition
reduced for each quarter of the year.
With the changing economic environment, we positioned
our Company to work with clients for their digitaltransformation as well as their cost efficiency andautomation programs, enabling us to support them in two
critical areas of interest.
We have developed a strong set of capabilities ingenerative artificial intelligence to enhance how we enable
our clients to derive value. These capabilities are available
to all our clients in the form of Infosys TopazTM.
Our Cobalt capabilities for the cloud continue to resonate
with our clients. Our platforms, including Finacle for banks,
McCamish for insurance, Equinox for commerce, and Helix
for healthcare, are creating strong impact with clients.
During the year, we were recognized by Brand Financeamong the top three most valuable IT services brands
globally.
We continue to deepen our engagement with our clients.
The number of clients with over US$100 million in revenue
for the year was at 40. The number of clients with over
US$50 million in revenue for the year was at 75. Our large
deal intensity was strong during the year. We had 95 large
deals with a value of US$9.8 billion in the year. We see
our One Infosys approach helping support our clients bybringing all our capabilities and the strength of our entire
employee-base to work for their benefit.
We recruited over 50,000 college graduates in the year andended the year with over 3,40,000 employees. At the endof the year, 39% of our employees were women.

Our learning ecosystem enabled over 5.5 million learningdays for our employees during the year.
Last year we returned US$3.1 billion to our shareholders –US$1.7 billion as dividend and US$1.4 billion through ourshare buyback program.
At the end of the financial year, we were the leading
company among our peers in total shareholder return overthe past five years.
We remain committed to the communities we live andoperate in. With the work of Infosys Foundation, we
support a variety of social causes, including creating
positive impact in healthcare, education, sustainability, andwomen empowerment. Our Infosys Springboard initiative
continues to help build digital skills by providing freelearning programs to millions of people around the world.
In the past few quarters, we have seen the global
economy dealing with inflation, interest rate increases,
and changes in demand environment for companies invarious industries. Our strength in digital, cloud, and inautomation, along with cost efficiency capabilities haveheld us in good stead. These will continue to be critical in
the evolving economic environment.
As I look ahead, given the trust of our clients, thededication of our employees, the strength of ourcapabilities, our One Infosys approach, and the guidanceof our Board, I remain confident of our ability to serve ourclients and continue to create impact for them.
With my warmest regards,
Sd/Bengaluru
May 29, 2023

Salil Parekh

Chief Executive Officer and Managing Director

Salil Parekh

Chief Executive Officer andManaging Director

32

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

33

Performance overview

Awards and recognitions
Won the FE CFO Awards 2023 in the
Large Enterprises - Servicing Sector
category.
Won Treasury Today Asia’s Top
Treasury Team 2022 award at theAdam Smith Awards Asia 2022

Recognized as one of the “Most
Honored” companies, receiving
multiple awards at the 2022 AllAsia Executive Team Rankings from
Institutional Investor

Positioned as a leader in HFS Top
10: Capital Markets Services, 2022

Infosys InStep Ranked as the ‘Best
Internship Program’ in the 2023
Vault Firsthand Rankings

Business

ESG
Recognized as a constituent of the
Dow Jones Sustainability World
Index for 2022

Awarded HFS OneOffice™ Award in the
Sustainability category

Secured a place in CDP’s annual‘A List’ for leadership in corporatetransparency and performance on
climate change

Recognized as a leader in Everest– Sustainability Enablement
Technology Services PEAK Matrix®
Assessment

Recognized as one of
the 2023 World’s Most
Ethical Companies® byEthisphere

Ranked as a leader in HFS Top 10:
Sustainability Services, 2022
Infosys BPM won the Best CSR
Impact Award at the Corporate Social
Responsibility Summit & Awards 2023
by UBS Forum

Ranked in the Top 3 IT Services
Brands in the world and among
the Top 150 Most Valued Brands by
Brand Finance Global 500 2023 report

Won the ‘Most
Outstanding Company
in India – IT Services
Sector’ in Asia’s
Outstanding Companies
Poll 2022 by Asiamoney

Named in AVTAR Top 10 Best
Companies for Women in India
list in 2022

Recognized as UK’s Best Workplaces™
in Tech 2022 by Great Place to Work®

Honored at the Asset ESG Corporate
Awards 2022 with a ‘Platinum
Award for excellence in ESG’,‘Best Investor Relations Team’, ‘Best
initiative in Diversity and Inclusion’,and ‘Best initiative in Environmental
Responsibility’34

Secured an ‘AA’ rating on MSCI ESG
Assessment
Recognized by EcoVadis with a Gold
medal for the seventh year in a row

Won the Economic
Times Best
Organizations for
Women Award 2023

Recognized amongst India’s Best
Workplaces™ for Women 2022 by
Great Place to Work®
Won the ICAI Sustainability
Reporting Awards 2021-22 for Gender
Equality

Infosys topped the charts in the
CRISIL ESG Leadership Rankings
and was featured in the CRISIL
Sustainability Yearbook, 2022 for thesecond consecutive year
Recognized in the LEADERSHIP
category in the Indian Corporate
Governance Scorecard Assessment by
Institutional Investor Advisory Services(IiAS) for the seventh year in a row

Recognized as ‘GSI Innovation
Partner of the Year 2022’ at
Snowflake Summit

Recognized among Kantar’s global 100
most valuable brands in 2022

Recognized among Mexico’s BestHR leaders of 2022 by Great Place
to Work®

Recognized as a top ESG performer in
2023 by Sustainalytics

Infosys rated as “Most Noteworthy”
Company by DiversityInc, USA

Won the Gold Award at the
Brandon Hall Group Excellence inTechnology Awards

Recognized as a Top Employer in
22 countries across Europe, Middle
East, Asia Pacific, and North America
for best-in-class HR practices andprocesses

Infosys Integrated Annual Report 2022-23

Recognized as a Global Top
Employer 2023 by the Top
Employers Institute for the 3rdconsecutive year

Winner of the 2022 Microsoft
Security Modern Endpoint
Management Partner of the YearAward
Recognized as the Top Service
Provider Across Nordics inthe Whitelane Research and PA
Consulting IT Sourcing Study 2023

Infosys recognized as the Championof Inclusion in the Most Inclusive
Companies Index (MICI) and featured
in the “100 Best – Hall of Fame” byAvtar & Seramount, 2022

Infosys received the Great Place to Work® Certification across five
regions including India, Australia, United Kingdom, Germany, USA,
Canada and Mexico. Infosys BPM received the Great Place to Work®
Certification in the Philippines

Infosys Integrated Annual Report 2022-23

Awarded HFS
OneOffice™ Awardin the Innovation
Ecosystem category

Infosys BPM won in theInternational Project of the Yearcategory with Telefonica UK, at
the Global Sourcing Association(GSA) UK Awards 2022

35

Awards and recognition
Infosys BPM recognized as:

Infosys won the 2022 Marketing
Excellence Gold Award from
Information Technology Services
Marketing Association (ITSMA) for
Infosys Cobalt

Infosys, along with client Lanxessrecognized as a winner in the“Workplace of the Future” category
in 2022 ISG Paragon Awards™ EMEA

Infosys BPM announced
as a winner in the
Telecommunications Project of
the Year category with BT-EE, atthe Global Sourcing Association(GSA) UK Awards 2022

EdgeVerve named “Innovator” in
the Computer Vision Category
at the 2022 NASSCOM AI Game
Changer Award

Infosys recognized as a leader in
Forrester Wave™

Infosys ranked among the Top 5
employers in India for the second
year in a row, recognized for industry
leading employee practices by
LinkedIn Top Companies 2022

Infosys Finacle won the ‘Best Core
Banking System Initiative inpartnership with Bank Raya’ and‘Best Retail Bank in partnershipwith Axis Bank’ at the Retail Banker
International Asia Trail blazer
Awards 2023

Infosys Finacle positioned as a Leader
in The Everest Group PEAK Matrix®
for Wealth Management Products
Provider 2023 report
EdgeVerve awarded the Gold GLOBEE
Awards for Disruptor Company of theYear in Automation and Productivity

Infosys BPM and Rio Tinto
won the SSON North
America Impact Award
2023, in the BusinessResiliency category

36• Leader & Star Performer in Everest
Group Capital Markets Operations PEAK
Matrix® Assessment 2023
• Leader in Everest Group Marketing
Services PEAK Matrix® Assessment 2023
• Leader in the NelsonHall Financial
Services Cloud, SaaS & BPaaS NEAT 2023
• Leader and Star Performer in Everest
Group’s Finance and Accounting
Outsourcing (FAO) PEAK Matrix®
Assessment• LEADER in Nelson Hall NEAT: Supply
Chain Transformation 2022
• LEADER in Everest Group Financial Crime& Compliance Operations – Services
PEAK Matrix® Assessment 2022
• Leader in the 2022 Gartner® Magic
Quadrant™ for Finance and Accounting
Business Process Outsourcing• Cloud Migration and Managed Service
Partners in Asia Pacific, Q4 2022
• Multicloud-Managed Services Providers,
Q1 2023
Infosys positioned as a leader in the2022 Gartner® Magic Quadrant™ for• Oracle Cloud Applications Services,
Worldwide• SAP S/4HANA Application Services,
Worldwide• IT Services for Communications Service
Providers, Worldwide
Infosys recognized as a leader in ISG
Provider Lens™

Infosys positioned as a leader in
NelsonHall’s• End-to-End Cloud InfrastructureManagement Services 2022
• Supply Chain Transformation 2022
• Mortgage & Loan Services 2022
• Financial Services Cloud NEAT, BPaas
NEAT, and SaaS NEAT 2023
Infosys ranked as a leader in HFS
Horizons:• Cloud Native Transformation, 2022
• The Best Service Providers for Retail
Banking, 2023
• Digital Engineering Service Providers,2023• Metaverse Services Providers 2023
Infosys ranked as a leader inConstellation ShortList™
• Blockchain Technology Services• Campaign to Commerce: Best-of-Breed
Commerce Platforms• Digital Transformation Services (DTX):
Global• Public Cloud Transformation Services:
Global• AI-Driven Cognitive Applications• Customer Experience (CX) Operations
Services: Global• Metaverse Design and Services• Innovation Services and Engineering• Learning Marketplaces• Microsoft End-to-End Service Providers
Infosys positioned as a leaderin Avasant’s RadarView™
assessments in• ServiceNow Ecosystem Partners in U.S.
and Australia 2022 Quadrant Report• Power & Utilities Industry - Services andSolutions 2022 study in the US• Digital Business Enablement and ESG
Services in US, UK, Nordics, Germany,
Australia and Brazil• Next-Gen ADM Services 2022 ISG
Provider lens™ study in US• Salesforce Services 2022
• Internet of Things Services 2022
• Cybersecurity Services 2022
• Applied AI and Advanced Analytics
Services 2022
• Digital Master’s 2022

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23• Freight and Logistics Digital Services
2022-23• Life Sciences Digital services 2022-23• Utilities Digital Services 2022–2023• Manufacturing Digital Services 2022–
2023• CPG Digital Services 2022-23• Hybrid Enterprise Cloud Services 20222023
Infosys ranked as a leader in
the IDC MarketScape’s Vendor
Assessments in• Worldwide Cloud Professional Services• Worldwide Intelligent Automation
Services• Worldwide SAP Implementation
Services 2022
• Asia/Pacific SAP Implementation
Services 2022
• Asia/Pacific Salesforce Implementation
Services 2022
• Worldwide Manufacturing Service LifeCycle Management Strategic Consulting
2022• EMEA Service Providers for Energy
Transition and New Business Models for
Oil and Gas Companies 2022
• EMEA Industrial Internet of Things
Service Providers for Oil and Gas
Companies 2022
• Worldwide Manufacturing Intelligence
Transformation 2023
• Worldwide Manufacturing Intelligence
Transformation Strategic Consulting2023• Worldwide Professional Services
Firms for Mining Operational Process
Optimization 2023
• Asia/Pacific Intelligent Digital Workplace
Services 2023

• System Integration (SI) Capabilities on
Amazon Web Services (AWS) 2022
• ServiceNow Services 2022
• System Integration (SI) Capabilities on
Microsoft Azure 2022
• Software Product Engineering Services
2023• System Integration (SI) Capabilities on
Google Cloud Platform (GCP) 2022
• Workplace Communication and
Collaboration (WCC) Services 2023
• Application and Digital Services (ADS)in Property & Casualty (P&C) Insurance
2023• Risk and Compliance in BFS IT Services
2023• Application and Digital Services (ADS) in
Life and Annuity (L&A) Insurance 2023
• Advanced Analytics and Insights (AA&I)
Services 2023
• Digital Transformation Consulting
Services 2023

Recognized as a leader in Everest’s
PEAK Matrix Assessment in• Data and Analytics (D&A) Services 2022
• Healthcare Payer Digital Services 2022
• Oracle Cloud Applications (OCA)
Services for Europe

37Approaching value creation

Our business context
Technology is transforming
businesses in every industry
around the world in a profound andfundamental way. In fiscal 2023, we
saw emerging technologies, likegenerative AI, 5G, Low Code No
Code, shape the future of industries.
Responsible business approaches,
including embracing ESG, havegained traction. We continued towitness businesses attempting toreimagine their cost structures,increase business resilience andagility, personalize experiences
for customers and employees,
and launch new and disruptive
products and services. Enterprises
are leveraging models of thedigital era to extend the value ofexisting investments and, in parallel,transform and future-proof theirbusiness. The need for professionals
who are highly skilled in bothtraditional and digital technology
areas are driving businesses tobuild strategic technology andIT partnerships to realize theirtransformation journeys.

• Proliferation of tech natives and large
enterprises responding by reinventing
digital business models• Intense competition for talent asenterprises embrace new ways
of working amid scarcity of niche
digital skills• Focus on Environmental, Social andGovernance (ESG) as a strategic theme
for all enterprise stakeholders

We are also in the third wave ofAI evolution. The first was driven
by machine learning, the secondby deep learning and the third by
foundation models that will enable
us to further fine-tune the necessitiesof specialized domains and tasks.

Responsibility andresponsiveness

The future of the technology industry
continues to be shaped by thefollowing trends:• Accelerated demand for IT services
with digital going mainstream andgrowth pockets emerging in areas
like cloud, AI, cybersecurity, IoT and
immersive technologies• Focus on cost takeouts to deal withthe uncertain global environment• Greater leverage of general-purpose
AI technology• Increase in enterprise spending on
hybrid, multi-cloud led transformation

38

Intense competition marks thedelivery of traditional services ina rapidly changing marketplace,especially with the emergence of
new players in niche technology
areas. Infosys’ industry expertise, end
to-end service capability and digitalsolutions, ability to scale, establishedplatforms, superior quality andprocess execution, distributed agile
global delivery model, experienced
management team, talented
professionals and track record areoften cited as clear differentiators.

grow, suppliers look forward to longterm relationships; communities seek
improved lives, while governments
and regulators expect good
governance and legal compliance.
Infosys continues to deliver value toall its stakeholders through prudent
and responsible business decisions,services and operations.
During fiscal 2023, Infosys extended
adoption of the integrated Enterprise
Risk Management framework acrossthe organization, strengthening
its risk management programsignificantly. While the Company
tracks several risks to its business, thetop risks and mitigation, along withemerging risks, are available in the
Risk management report.

Our solutions are classified as digital and core.
DigitalExperience

Accelerate

Insight

AssureInnovate
Infosys Cobalt is a set of services, solutions, and platforms for enterprises to accelerate
their cloud journey.
Infosys Topaz is an AI-first offering to accelerate business value for global enterprises
using generative AI.

CoreApplication management services

Infrastructure management services

Proprietary application development services

Traditional enterprise application implementation

Independent validation solutions

Support and integration services

Product engineering and management

Business process management

Digital accelerators
Infosys Metaverse Foundry eases and fast-tracks enterprises’ exploration of themetaverse, including virtual and augmented environments, for their customers,
workplace, products and operations.

As an early proponent of responsible
business, Infosys has incorporated
ESG goals into the entirety of its
operations. Infosys ESG Vision 2030
articulates the Company’s ambitions
to balance success as a business withunwavering focus on exemplary
governance and responsiveness tothe needs of stakeholders. Primary
stakeholders include investors,
customers, employees, suppliers,
communities, government andregulatory bodies. The expectationsof the Company’s investors include
sustainable business performanceand good returns; customers want
long-term business value andinnovative solutions; employees are
keen for opportunities to learn andCenter for Emerging
Technology Solutions

Infosys Center for Emerging Technology Solutions focuses on incubation of NextGen
services and offerings by identifying and building technology capabilities toaccelerate innovation.

Key products and platforms

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

39

Approaching value creation

Strategy

Our strategic objective is to build a sustainable and resilient organization that remains
relevant to the agenda of our clients, while creating growth opportunities for our
employees, generating profitable returns for our investors and contributing to thecommunities that we operate in.
Our clients and prospective clientsare faced with transformative
business opportunities due toadvances in software and computing
technology. These organizations
are dealing with the challengeof having to reinvent their coreofferings, processes and systems
rapidly and position themselves as“digitally enabled”. The journey tothe digital future requires not just anunderstanding of new technologies
and new ways of working, but a deep
appreciation of existing technology
landscapes, business processes
and practices. Our strategy is to bea navigator for our clients as theyideate, plan and execute on theirjourney to a digital future.
In 2018, we embraced a four-pronged
strategy to strengthen our relevancewith clients and drive accelerated
value creation:
1. Scale agile digital
2. Energize the core
3. Reskill our people
4. Expand localization
We believe the investments we have
made, and continue to make, in our
strategy will enable us to advise andhelp our clients as they tackle thecurrent market conditions. Further,
we have been able to successfully
enable most of our employees
worldwide to work remotely andsecurely – giving us the operational
stability to deliver on client
commitments and ensuring our own
business continuity.
Over the last few years, we haveexecuted on this strategy andgenerated significant outcomes.

40

Scale agile digital
Our revenue from digital technology
related services and solutions has
more than doubled in the last
three years, and now comprises
62.2% of our total revenue. We are
rated as a “leader” in 56 industry
analyst ratings across our digitalofferings. These outcomes are a
result of investments we have madeto expand our digital footprint via
reskilling of our employees, targeted
acquisitions, strong ecosystem
partnerships, innovation experience
centers across the world, intellectual
property development, reconfiguring
our workspaces for agile softwaredevelopment and enhancing
our brand.
During the fiscal, we completed theacquisition of oddity to augment
our human experience capabilities
in Europe. Through our academia
partnerships with Purdue, Trinity,
RISD and eCornell, we have trained
over 7,500 employees in niche
digital skills.
Our Insight and data analytics
services and solutions were further
strengthened with our Infosys
Applied AI solutions, coupled with
the Infosys Data Workbench. Our AI
platform, Infosys Applied AI, helps
enterprises adopt a comprehensive
approach to scaling enterprise-grade
AI for their businesses. Our Core AI
Engineering will focus on identifying,fine tuning and deploying models,API’s and platforms in a responsible
manner for building AI products.

Our Innovate-related services andsolutions are boosted by workspacesthat have been specificallyredesigned for agile softwaredevelopment, teams reskilled inagile methodologies, certified
scrum masters and capabilities inhorizontal technologies such as
5G, autonomous tech, productengineering, internet of things andblockchain.
Our Accelerate-related services
are aimed at rapidly transforming
our clients’ legacy technology
landscapes and processes with digitaltechnology. We invested in andbuilt strong partnerships with cloud
hyperscalers such as AWS, GCP andMicrosoft Azure, and SaaS providers.
Infosys Equinox, our flagship digitalcommerce platform, is a set of coremicroservices encompassing all
digital commerce scenarios to help
enterprises rapidly build and deploy
features across all touchpoints
and channels, without the friction
associated with legacy platforms.
Our Automation and AI services
grew on the back of our allianceswith leading Robotic Process
Automation (RPA) solution providers,
AI infrastructure players like Nvidia
and niche AI players, powered byour best-in-class solutions, IPs andframeworks. We have automatedover 50,000 processes for our clientsand have over 12,000 ready use cases
across industries.
Our Assure-related services, insoftware testing and cybersecurity,
continued to grow with investments
in Cyber Gaze, our cybersecurity
dashboard and suite of applications.
Infosys Integrated Annual Report 2022-23

Energize the core

Reskill our people

Expand localization

Leveraging automation and AI,
we are winning and executing
several engagements for ourclients to modernize their corelegacy technology and process
landscapes. We made significant
investments in our “Live Enterprise”
platform, including our Bot Factoryof preconfigured automation botsand Live Enterprise Application
Management Platform (LEAP),
our platform for optimizing large
scale application maintenance andreengineering.

Continuous learning and reskilling
has always been integral to ouroperating model. We operate our
reskilling program with the twin
objectives of increasing fulfillment
of demand for digital skills in client
projects and for enriching theexpertise of our global workforce
in next generation technologies
and methodologies. We invested
in, and scaled, our digital reskilling
program globally. Our programs now
also encompass latest courses on
generative AI landscape.

In fiscal 2023, we won a total
contract value of over US$ 9.8
billion in large deals, continuing
to demonstrate our capabilities
and competitiveness in executing
complex transformation programs.
In addition, investments in our own
internal systems, reimagination of ourinternal processes and automationof software development processes
have helped increase our agility,
boost productivity and enhance ourcompetitiveness even in the current
paradigm of remote working.

Lex, our in-house developed,
anytime-anywhere-learning platform,
offers over 14,800 courses curated
for easy consumption on mobile
devices with advanced telemetry,
gamification and certification
features. Over 3,25,000 of ouremployees use Lex and are spending
approximately 3.3 million training
days compared to 2.3 million in thelast fiscal.

With the objective of creating
differentiated talent pools andecosystems in our markets, wemade significant investments in
expanding our local workforce inthe United States, UK, Europe, Japan,
China, Canada and Australia. We
established innovation hubs, nearshore centers and digital design
studios across geographies. Further,
we expanded our university andcommunity college partnerships inall these regions to aid internships,
recruitment, training and joint
research. In fiscal 2023, we recruited
over 10,169 employees locally in ourmarkets, of which 2,216 were fresh
graduates.

Our platforms are also beingenhanced with generative AI aspects.

Looking ahead, and to continue staying relevant to the emerging needs of our clients, we prioritize:• Scaling our cloud capabilities,
especially around cloud advisory,
data on cloud, cloud security, SaaS,
PaaS, IaaS and private cloud;• Expanding capabilities in key
digital technology areas suchas AI, product engineering,

Infosys Integrated Annual Report 2022-23

cybersecurity and humanexperience;• Strengthening our employee value
proposition for the newer contexts
of work and workplace;• Running our operations in a
cost-effective and agile manner,

including increasing the levels of
automation in our service delivery;• Delivering on our ESG
commitments, while at the sametime enabling our clients to realize
their sustainability goals.

41

Approaching value creation

Value creation model
InputsProcess and Strategy
Financial Capital

Outputs
15.4% Constant currency revenue growth
9.7% Earnings per share growth
31.2% Return on equity

Digital`31,286 cr Consolidated cash and investments

Products
Platforms
Core solutions

Intellectual Capital

62.2% Digital revenues
25.6% Constant currency digital revenue growth
56 Digital leader ratings
290 Artifacts published by the Infosys Knowledge Institute (IKI)
27 Reports published by IKI
735 Patents in the portfolio

40 Industry-leading products, solutions and platforms
Strategy

p
Ex

ig
it a
l

a

Sc

le
a

gi
l

n

Environment

3,43,234 Total no. of employees
Social

`1,585 cr Investments in employee well-being
g

z

t

e

e

s

r

• Top employer in 22 countries acrossEurope, Middle East, Asia Pacific, andNorth America.
• Best-in-class employee experienceand learning• Safe and inclusive workplaces

l
op

e

h
R

co

k il

Clients

28.9 mn sq. ft. Highest rated green buildings

Natural and Manufactured Capitalemissions`1,510 cr Capex spend on tech infrastructure

49.92% Reduction in scope 1 and 2 emissions over the
BAU scenario

32 Climate change solutions

Employees

Suppliers

4th Consecutive year of being carbon neutral across scope 1,2,3eNatural and Manufactured Capital

p

e

ie

Our people andthe strong cultureof innovationer

Governance

ur

E

n

Human Capital~50,000 Fresh graduates hired globally
1,35,355 Women in the workforce (39.4%)

lo

16.31 Annual average training days per
employee

Investors

c

tio
za
ali

a

• Diversified portfolio of solutions
across industry segments• Innovation partner to clients• Partner of choice for social andenvironmental solutions for thecommunity

lo

nd

ed

Human Capital• Profitable growth• Sustained / long-term cash flow

Intellectual Capital

1,90,000 Employees trained in digital skills
248 Startups in our innovation ecosystem

Stakeholders

Financial Capital

Client offerings`75,407 cr Net assets

Outcomes• Strong advocates of environmental
stewardship extending beyond ourboundaries• Productive, safe and healthy
workplaces for employees

Communities>30% Client engagements include climate change solutions
Go-to-market business units
Social and Relationship Capital`517 cr Global CSR spends

1,872 Total no. of active clients

Hi-TechManufacturing
Life Sciences and Healthcare
Financial Services and Insurance

28 No. of nearshore / tier-2 locations

Energy, Utilities, Resources and Services

13 No. of carbon offset projects

Communications, Telecom OEM and MediaSocial and Relationship Capital
8.5 mn People enabled in digital skills
458 New client accounts
64,275 Employees in nearshore / tier-2 locations
2,40,000+ Rural families continue to benefit from our carbon• Positive impact on the communities
in which we operate• Trusted partner of choice for all
stakeholder groups

Government /Regulators

offset projects

Retail, Consumer Packaged Goods and Logistics
Public Services
Others including segments of businesses in India, Japan and China
42

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

43

Delivering value

Financial Capital
We obtain our Financial Capital through the funds generated from our business operations andfinancing activities. Our strong performance on the back of meticulous execution over the years,
as reflected in the combination of high growth and profitability, has led to building a strong,debt-free, and liquid Balance Sheet. Our focus is on ensuring a sustainable and profitable financial
position. Our stakeholders expect us to deliver long-term growth riding on a solid strategy andprudent business decisions. Our shareholders are looking for good returns on their investment anddividends, along with a steady buyback plan.

Market capitalization

Revenue growthIn ` crore
5,82,880

8,02,162

20.7%

Revenue growth

15.4%

CC Revenue growth• Scale agile digital &Energize the core

52.52

57.63

2021

2022

2023

In %

2021

Material topics

In `
45.61
5,92,394

86% of free cash flow for fiscal 2020 to fiscal 2023 returned to shareholders inline with the Capital Allocation Policy.

Performance highlights

Basic earnings per share

2022

2023

Free cash flows

10.7

21.1

20.7

2021

2022

2023

Return on equity

In ` crore

Dividend per shareIn %22,02022,803

20,443

2021

2022

2023

27.4

29.1

31.2

2021

2022

2023

In `
27.0

31.0

34.0

2021

2022

2023

• Shareholders returns

21.0%

9.7%

31.2%

9.7%

Operating margin

Return on equity (ROE)`31,695 cr

Robust working capital

Dividend per share growth• High returns on equity

UN SDG mapping

EPS growth

Shareholder value creation

AAA rating

We constantly endeavor to fulfill the
expectations of our investors throughresponsible business decisions
and governance. Integrity andtransparency are top priorities in our
relationship with our investors.

By CRISILManaging financial capital
Infosys has a high cash-generating
business with access to capital
markets across the world. Our strong
credit rating allows us to raise debt
at competitive rates in the future,
if needed. The primary source offunds is cash from operations andincome from short and long-term
investments, among others.
Our primary sources of liquidity
are cash and cash equivalents andthe cash flow generated from ouroperations. We continue to remain
debt-free, and we maintain adequate
cash to meet our operational44

and strategic requirements andunforeseen events while also earning
sufficient returns.
Our consolidated cash andinvestments include deposits
in banks, investments in liquidmutual funds, fixed maturity plan
securities, commercial paper, quoted
bonds issued by government andsemi-government organizations,non-convertible debentures andCDs or certificates of deposits – allsuch instruments issued by eligible
financial institutions with highcredit ratings.

We also build financial assets andcreate financial value by investingin the startup ecosystem. These
investments enable us to accessinnovation, which together with
our services and solutions, deliver
benefits to our clients. Mostoften, our investments compriseminority equity positions in startup
organizations and / or venture
capital funds.
Details of these investments areavailable in the Financial Statementsin this Integrated Annual Report.

Infosys Integrated Annual Report 2022-23

We are privileged to share a strong
relationship with investors basedon a deep understanding of their
expectations and our commitment
to creating value for them. Infosys
has been delivering industry-leading
revenue growth through prudent
financial management and soundcorporate governance – resulting
in share value appreciation, leading
to sustained value creation forinvestors. We maintain transparency
in our disclosures and frequent
communication with investors
through channels such as quarterly
post-result calls, analyst meets, theAnnual General Meeting, and regular
one-to-one and group interactions.
Infosys Integrated Annual Report 2022-23

Delivering value throughbusiness strategy
Our market-oriented four-pronged
strategy enables us to invest in
expanding our global digital
footprint. This helps Infosys to berecognized as a partner of choicefor digital transformation and also
increases our potential to attract
larger total contract value (TCV) deals
and clients. This enhances our ability
to generate industry-leading growthand profitability, thus generating
shareholder value.

Distribution of value
created through Capital
Allocation Policy
During the five-year period of
fiscal 2020-24, Infosys expects toreturn approximately 85% of thefree cash flows generated througha combination of semi-annual
dividends and / or share buyback
and / or special dividends, subject
to applicable laws and requisite
approvals, if any.
Details of our Capital Allocation
Policy are available athttps://www.infosys.com/investors/
corporate-governance/documents/
capital-allocation-policy.pdf.

45

Delivering value

Human Capital
Nurturing talent for the future is essential for our continued success. We have long establishedpaths for employee upskilling and reskilling, and our efforts have been well-rewarded, providing
value to our people and us. Our people expect the Company to provide them ample opportunities
to learn and grow in their careers while enjoying work in safe workplaces, free of all discrimination
and bias. Employee well-being and interaction with a large, diverse and multicultural workforce areadded advantages.

Our 5C model for Engagement – Connect, Collaborate, Celebrate, Care, andCulture – is designed to strengthen and reinforce our culture so that it isexperienced uniformly and positively by employees, remote or in office.

Performance highlights

3,43,234

Employees globally160+

Nationalities in the workforce

1,357• Employee healthand wellness

Employees have voluntarily
disclosed their disability

Inspiring you
to build what’s next

• Diversity, Equity
and Inclusion

82%

Inspiring our people withmeaningful work and passionate
teams, enabling them to find their
purpose and make an impact• Energizing local
communities

Employee satisfaction score~50,000

Employee health andwellness

Employee satisfaction

Fresh graduates hired globally

73%

75%

82%

46

Diversity, Equity andInclusion
As part of our ESG Vision 2030,
we aim to achieve 45% female
representation in our workforce by2030. In fiscal 2023, we had 1,35,355
women, making 39.4% of the total
workforce.

There is a stronger focus on individualand collective well-being in the
hybrid work model. Employees whoare comfortable and satisfied withwork add to the productivity andsuccess of the organization, while also
leading happier and fulfilling lives.

Our employee well-being rates
reached an all-time high of 91%
among employees across locations.

Our EVP continues to build on
the three pillars of• Employee Value
Proposition

1,90,000

Infosys’ Health Assessment & Lifestyle
Enrichment (HALE) program is a
non-monetary employee benefit
and has been recognized as the bestinternal brand with great recall andparticipation.

We never cease to reinforce our
Employee Value Proposition (EVP).

Material topics

UN SDG mapping

Employees trained in digital skills

Employee Value
Proposition

Making sure yourcareer never stands still
Enabling our people with learningand progress in their careers while
shaping our collective future

Our career framework, articulated as
Career Gambit, is a simple, intuitive
framework that is focused on threeimportant actions – Get, Set, Go.
Get: Access to world-class learningand personalized learning paths withdigital readiness through Lex, ouronline learning platform, and Digital
Quotient, a comprehensive score thathelps employees keep track of theirdigital capabilities.
Set: Employees are encouraged to set
themselves up to win, acquiring Skill
Tags and setting sights on specialized
careers through tools such as DigitalSpecialist. Once they complete
the required courses and gain six
months of experience in that skill set /technology, they qualify for a Skill Tag.
Go: Multiple pathways into exciting
technology spaces throughBridge programs, Accelerate andMarketplace enhance employees’
mobility in this fast-paced technology
world. These intelligent platforms
match the right opportunity to theright individual at the right time for
employees and business alike.
These efforts have resulted in faster
growth, broader career options,increased talent mobility and sharper
compensation differentiation.

% of women employees
2021

2022

2023

38.6

39.6

39.4
Navigating further,
together
Ensuring our people
experience Infosys in acreative, dynamic, rewarding
and inclusive environment

2020-212021-222022-23

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Our Talent Pulse report articulates
the Infosys advantage. Read more
at https://www.infosys.com/
careers/documents/talent-pulsereport-2023.pdf.

Infosys internship program
InStep, Infosys’ flagship global
internship program, has 200+ partner
institutions in over 50 countries, morethan 3,000 alumni members andinterns from over 50 nationalities.
InStep has been ranked as World’s #1
Internship Program, five times in a
row by Vault Firsthand, a prestigious
career intelligence platform. InStep
has been instrumental in building
strong academic partnerships
for Infosys with premier global
institutions, generating numerous
patents and publications, alongwith contributing to the overall
localization efforts.

Localization
To create a more diverse and inclusive
talent pool in our markets, we arecommitted to creating a significant
number of local jobs in our key
markets in North America, Europe,and APAC. We believe that this will
help us to better serve our customers
and create an environment where
everyone can thrive. We establishedinnovation hubs, nearshore centersand digital design studios acrossgeographies. In fiscal 2023, we
recruited over 10,169 employees
locally in our markets.
Our hybrid work model is about ourpeople and their comfort. It offers
the flexibility of working from home,working from office or a combinationof the two. The model operates
according to different employee
contexts: those in the same city as
their office, those in other locations,and other situations. As part of thisstrategy, this year, we set up offices
in Hubballi, Indore, Navi Mumbai,
Nagpur and Coimbatore, in India.

47

Delivering valueIntellectual Capital
Our Intellectual Capital is driven by agility, flexibility, and innovation. We are committed to working
with experts, partners, academia, and other stakeholders to develop new products and services
that meet the needs of our customers and communities. We are also focused on strengthening ourTech for Good solutions and providing an environment for startups to be incubated and innovation
to be scaled.

With iCETS, the Living Labs, and the Infosys Innovation Network, wehave a broad portfolio of solutions across industry segments, while the
Infosys Prize and Aarohan Social Innovation Awards provide a platform forinnovators and social entrepreneurs, respectively.

Performance highlights

62.2%

Of our total revenue comes from digitaltechnology services and solutions

100+

Client living labs

735

Patents owned by Infosys

Material topics• Innovation andIntellectual Property

1,000+

Infosys Knowledge Institute assets• Products, platforms
and solutions• ESG solutions“Well known”

UN SDG mapping

Trademark for Infosys in India

Industry leader

iCETS is the incubation unit at Infosysthat offers a variety of emerging
technology services to clients.
These services include building
next-generation platforms anda variety of new-age innovation
services including incubation of
emerging technology capabilities(like generative AI, AR/VR/metaverse,
quantum computing, cloud,cybersecurity and data management)
under various Centers of Excellence(CoE). Led by the CoE, iCETS has
been curating technology andtrends across business verticals andcontributing to thought leadership.

48

Infosys Innovation
Network (IIN)
IIN is a well-orchestrated partnershipamong select startups, universities,
hyperscalers and Infosys to incubate
and bring the best of emerging
tech innovations from across theglobe. Today, IIN boasts of 250
startups and these have had over
400 client impressions. Infosys has
also established partnerships withkey client corporate venture capital
firms to bring their portfolio startups
onto the Infosys network. Over the
past 12 months, we’ve engaged withnumerous startups, universities andhyperscalers across geographies
like the US, Finland, Israel, and India,
in spaces like AI, fintech, cloud,cybersecurity, InsureTech, HealthTec,and more.

iCETS-led technology platforms like
LEAP, Cortex, Cyber Next, Quality
Assurance and Privacy Next arecontributing to differentiating Infosys
services. Infosys’ vertical platforms
like Energy-as-a-Service are opening
up new opportunities for Infosys andclient joint platform-led offerings.

Living Labs

Living labs
We collaborate with our clients toenable rapid prototyping, incubating
and piloting of innovative solutions,both through client and Infosys
living labs.

Product innovation

WongDoody

Our digital platforms subsidiary,
EdgeVerve, helps our customers
create a connected enterprise
where humanity, AI, and automation
work together. EdgeVerve’s three
digital platforms, AssistEdge for
hyper automation, XtractEdge forintelligent document processing, andTradeEdge for autonomous supply
chains, create connected enterprises
and orchestrate the confluenceof AI and automation to amplify
human potential, deliver cognitive
operations, and create a value
network of information, partners,
and resources for transformation andexponential growth.

WongDoody, the design/marketing/experience arm of Infosys, is driving
innovation in the CMO/CDO/CXO
space. Along with global studios,
WongDoody has developed newpractices and products for next gen
problems. These include StudioNext,
a flexible inside marketing innovation
acceleration and augmentation
practice; sustainability by design
methods including EcoLightaudits so enterprises can build
planet-friendly digital products; an
emerging experiences platform thatbrings the digital authenticity andengagement of video games to theautomotive, manufacturing and retailverticals; and the Sounding Board,an agile insights solution designed
to move faster and deeper to identify
competitive advantage.

Read more athttps://www.edgeverve.com/.

Intellectual Property (IP),patents and trademarks

Rating for iCETS platforms by analysts

Center for Emerging
Technology Solutions

Infosys Center for
Emerging Technology
Solutions (iCETS)

An Infosys company

With over 100+ client living labs,
Infosys has helped its clients exploreand develop art-of-the-possible
emerging technology solutions.
Infosys Living Labs brings our entire
innovation ecosystem together tohelp clients meet their innovation-atscale needs on multiple dimensions.
Here, we proactively expand ourservices and capabilities to meetgrowing and dynamic innovationneeds of clients leveraging joint
innovation centers, experience
centers, IIN & industry living labs,
complexity studio, and more. We also
monitor and publish Trend Trees of
Horizon 3 technologies and businesstrends and help our clients foresee
disruptions with Listening-Post-as-aService (LPaaS).

Infosys Integrated Annual Report 2022-23

Infosys Knowledge
Institute (IKI)
IKI harnesses the intellectual capitalof Infosys’ subject matter experts to
produce unique and fresh content
and insights on the business
impact that technology can drivefor prospects and clients. IKI also
develops its proprietary data andinsights through multiple large-scale
surveys and quantitative analysis.
These are published through its
flagship Radar maturity assessments,
the annual Tech Navigator reporton future trends and the ongoing
TechCompass tech trends series. IKI
has collaborated with 500 clientsand created over 1,000 assets since
inception. For more information, visit
https://infosys.com/iki.

Infosys Integrated Annual Report 2022-23

Infosys Marketplace

Infosys actively innovates anddevelops platforms, products andtools, that constitute its collectionof IP assets. These assets, which areavailable on the Infosys Marketplace,are used to differentiate ourselvesin the market or as productivityenhancing tools. We have 735
patents in the portfolio.

Infosys Marketplace is a one-stop
shop to see, try, and adopt innovativeand next-generation solutions from
Infosys and partners. The platform
provides hundreds of curated
solutions across a wide range oftechnologies and industry verticals toaccelerate the digital transformation
initiatives of global enterprises.

Over 840 trademarks registered(or pending) across 51 countries
underscore the strength of our brand.

Read more about Infosys Marketplaceat https://www.infosys.com/navigateyour-next/live-enterprise-suite/
offerings/marketplace.html.

• “Well Known”: Infosys is regarded
by Indian authorities as being a“Well Known” trademark. This gives
us legal rights across sectors.
• Most valuable brand: Infosys isrecognized as one of the top 3
most valuable IT services brands
globally by Brand Finance. Infosys
is now among the top 150 mostvaluable brands in the world.

ESG solutions
Infosys continues to strengthen
its position in delivering practical,
impactful, and holistic ESG solutions
to its clients and community
stakeholders. Over 30% of ourclient engagements include climatechange solutions.

49Delivering value

Natural Capital
We have been at the forefront of climate action, starting well before international treaties andglobal commitments came into place. Our environmental performance over the past decade
is a testimony to the fact that economic progress can go hand in hand with environmental
sustainability. Infosys became carbon-neutral in 2020 – 30 years ahead of the timeline set by
the Paris Agreement. Meeting stakeholder expectations, we are pioneers in our climate action
commitments, and water and waste management.

Today, we incorporate environmental considerations into everything that
we do, as we power the journey towards a sustainable world for all.

Performance highlights

57.9%

Of electricity for our India operations
comes from renewable sources

Material topics

2,40,000+

Rural families benefited throughcarbon offsets program

Carbon neutral for
4 years in a row

100%

28.9 mn sq.ft.

7 years

Of highest-level green certified space

Wastewater recycledwithin our campuses

Carbon offsets• Renewable energy

Empowering rural India• Offsets for community
development

Unavoidable emissions are addressed
through carbon offset projects tomaintain carbon neutrality. Infosys
continues to identify projects thathave a high social impact – including
improving health and livelihoodsof rural families, creating rural jobs,
thereby generating carbon offsets
for the Company. Our unique offset
program is certified to the highest
level (Gold Standard) in terms ofsocial impact, authenticity, andtransparency.

• Advocacy for climate
action• Water stewardship• Zero waste to landfill

UN SDG mapping

Of CDP climate leadershipThis year, we added new cookstoveprojects in Rajasthan, and biogas
projects in Maharashtra andKarnataka. Our carbon offsets
program is spread across five states,
and is expected to benefit more than
2,40,000 rural families, and create
over 2,800 rural jobs.

• As a part of our ESG Vision 2030, we have committed to maintaining
carbon neutrality across Scope 1, 2 and 3 emissions, every year
• Signatory to the Climate Pledge, with the ultimate goal of a
Net Zero planet by 2040
• Our goals are aligned to Science Based Targets (SBTi)

Climate action strategy

Energy efficiency
To reduce emissions
Renewable energy
To avoid emissions
Carbon offsets
To offset emissions

50

Energy efficiency
Infosys has been a pioneer inbuilding sustainable ecosystems
in its campuses, keeping in mind
the expanding workforce. From
creating green campuses to using
innovative technologies like radiantcooling, Infosys has deployed oneof the largest enterprise energy
conservation programs globally andachieved good reduction in resource
intensity over the past 15 years.

Infosys also procures green power
through third-party power purchaseagreements. We have also procured
green power through the green tariffmechanism of DISCOMs in a few
locations, as an option, to augment
our clean energy mix.

• Carbon neutrality

Infosys’ climate commitments

We are working diligently towards
this goal and built our carbon neutral
program on three pillars –installations. Today, Infosys has a total
installed capacity of 60 MW of solar
PV plants across India, supplying
renewable power to its campuses.

In the process, we have also set
new benchmarks in green building
certification. Today, Infosys has
about 28.9 million sq.ft. of buildings
with highest level of green building
certification.

Renewable energy
Transition to clean energy is an
important step towards emissions
avoidance. Infosys has adopted
renewable energy across its
campuses with solar PV panels
on rooftops and ground mountInfosys Integrated Annual Report 2022-23

Advocacy for climate action
Infosys campus as case study forinternational delegates
With India assuming the G20
presidency in December 2022,
the first G20 Energy Transition
Working Group (ETWG) was held in
Bengaluru in February 2023. Beinga frontrunner in environmental
sustainability and net zero approachto buildings, Infosys was selected
to host the G20 delegates for a site

Infosys Integrated Annual Report 2022-23

visit to the Infosys Crescent campus
in Bengaluru. The visit showcased
the focused approach to net zerodesign and innovative technologies
implemented in the campus toachieve energy conservation.

Water stewardshipAs a signatory to the CEO Water
Mandate, we commit to enhancing
our operational water conservation
procedures and expanding ourcommunity outreach. Infosys’
strategy to reduce water demand,
recycle 100% wastewater andfocus on rainwater harvesting haveresulted in significant reduction in
our water intensity.
An important element of our water
management system is rainwater
harvesting (RWH). We haveestablished around 400 deep injection
wells across India campuses, providing
a combined recharge capacity ofaround 20 million liters per day. We
have also built 39 lakes across our
campuses, holding 426 million liters of
rainwater storage capacity.
We have implemented state-of-theart membrane bio reactor (MBR)
sewage treatment plants across manyof our India campuses which arecapable of tertiary treatment. Infosys
campuses continue to treat 100%of wastewater and use it within thecampuses for flushing, landscaping
and cooling tower makeup waterrequirement.

Lake rejuvenation
Infosys has envisioned to takeup a water stewardship role byimplementing lake rejuvenation
projects and increasing water holding
capacity of lakes by 10 billion liters in
the next five years. Infosys plans towork with local partners to improvewater availability in the communities
in which Infosys operates.

Waste management
We seek to uphold our ambitionof zero waste to landfills throughactive minimization combined withtechnology investment in recycling
and streamlining systems andprocesses.
While there is a constant effort to
reduce waste generated through the
adoption of sustainable practices inoperations, the biggest differentiatoris the in-campus treatment of all
the organic waste (comprising foodwaste, garden waste and STP sludge),
following a true net-zero approach.
Organic waste contributes to an
average of 75% of the total waste
generated at Infosys and effective
treatment and reuse has created acircular economy for this stream ofwaste within our campuses. Infosys’
India centers are heading towards the2030 target of zero waste to landfills
through the adoption of TRUE
Certification.

Biodiversity
A saga of greening
A significant and proven way totackle climate change is to increase
green cover by planting trees. Infosys
Mangaluru offers a striking exampleof this, where barren land has beentransformed into a lush green
campus with thriving biodiversityof flora and fauna. The story ofthis transformation, along with
documentation of the tree species in
the campus, was recently published
as a book. With this, we hope toinspire corporates, developers,
administrators and communities toadopt similar projects at scale. The
book will also serve as a repository of
the endemic species in the Western
Ghats for science aficionados.

51

Delivering value

Manufactured Capital
Our Manufactured Capital includes our energy-efficient offices, data centers, innovation hubs,
digital studios, and our technology infrastructure across the globe. Our infrastructure is modeledtaking into consideration stakeholder expectations of our commitments towards climate change
mitigation, judicious use of natural resources and preserving our environment.

With the highest-rated green buildings on our campuses and investments
in collaborative tech infrastructure, we offer productive, safe, healthy andhybrid workplaces for employees, clients, partners and contractors.

Performance highlights

75 kWh/sq.m./p.a.
Building EPI

1.59

Weighted average PUE of data centres

Radiflux

Radiant cooling solution patented
in Europe and India

35 mn sq.ft.

Of office space monitored
through Infosys command center

Material topics• Green buildings / infra /data center efficiency• Workplacetransformation• Green IT

UN SDG mapping68%

Of internal IT application workload
migrated to public cloudHigh-performancegreen buildings
The lush green campuses ofInfosys, equipped with world-classinfrastructure, provides a uniqueexperience for our employees.
With about 28.9 million sq.ft.
of the highest level of green
building certification, Infosys’
leadership in high-performancebuildings remains unrivaled. Our
efforts include developing superefficient new buildings, retrofitting
existing buildings, a sharp focus
on innovation and continuous
monitoring to achieve the highest
levels of efficiency. Infosys’ building
standards have set new global
benchmarks.
52

Radiant cooling

Radiflux cooling solution

Infosys has been a pioneer in radiantcooling technology. Our buildingin Hyderabad was the first radiantcooled commercial building in India.
The building provided a global
case study comparing two coolingtechnologies in a single building withidentical conditions. Data over the
past 12 years has shown that radiantcooling is about 35% more efficientthan conventional air conditioning.
Today, Infosys has implemented
radiant cooling in over 5 million sq.ft.
of office space across its buildingsin India.

While Infosys was keen to implement
radiant cooling on a large scale for all
its new buildings, there were a few
challenges that had to be addressed
including, the non-availability of skills
and the lack of commercially viableoptions for the Indian market. The
Infosys team therefore developed aradiant cooling solution, with highquality and high energy efficiency,that is affordable and easy to install.
The radiant cooling solution –Radiflux – has twice the cooling
capacity compared with other radiantcooling solutions available in themarket today. Radiflux is a designed,

Infosys Integrated Annual Report 2022-23

developed and made-in-India
solution for the world, with patents in
Europe and India.

Central command center
The Infosys central command centerin Bengaluru manages our smart
buildings, energy management
systems, solar PV plants, data center
efficiency, battery management
systems, energy consumption forwater and wastewater treatment
plants across Infosys campuses
from one location. The command
center helps maintain operational
excellence, provides design
insights for new infrastructure andensures resilience through remotemanagement of buildings andcampus Infra.

Workplace transformation
The workplace has undergone
a significant change due to thepandemic, and the need to create
workplaces aligning to the newnormal working scenario is now moreevident than ever. Infosys embarked
on workplace transformation to
enable its employees to adapt
and excel in the new normal. The
principles of Infosys workplacestrategy are focused on productivity,
social connect, tech enabling, healthand wellness, sustainability anddesign for all. The new workplace
not only provides employeeswith a refreshing experience andcollaborative environment, but alsoenables high productivity, fosters
innovation and helps to create andsustain a flourishing culture.

Green IT
InfosysIT has embedded sustainable
practices across the life cycles ofservice design, operations, anddisposal of IT assets.

Infosys Integrated Annual Report 2022-23

Data center efficiency
InfosysIT has taken up data center
modernization as a strategic initiative.
Density‑optimized hyperscale
platforms, which provide cloud-scaleagility and enable efficient resourceuse, have been deployed to deliver
high-density server virtualization andconsolidation across the enterprise.
This initiative has delivered
significant power savings. In thenext phase, further consolidation ofdata center and server rooms acrossdevelopment centers is planned,
which is expected to deliver 1 MW ofelectrical load reduction.
InfosysIT has made focusedinvestments in Data Center
Infrastructure Management (DCIM)
tools to get accurate visibility acrossthe entire data center IT and Facility
stack, which is necessary to do
everything else.

Infrastructure as code
Infrastructure as code is atransformational initiative towards
enabling continuous deployment,
continuous integration, and touchless management of the life cycleof infrastructure components.
This methodology overcomes
the traditional challenges such as
growing scale of infrastructure,elastic demand, speed andconsistency of deployment andthe interdependency between
teams. This initiative delivered
1,200+ playbooks for automating
platform‑related processes acrosshybrid cloud.

AIOps-powered digital operations
InfosysIT has deployed AIOps
platform with a wide range ofcapabilities – like algorithmic noise
reduction, anomaly detection, root
cause analysis, and context-based
notification.

InfosysIT digital operations provides
unified observability cutting acrossinfrastructure and application
stack, in addition to capacity usage
and cost analysis. It also offers theability to ingest large volumes ofdata originating from all areas of
the infrastructure and application,
and analyze it using AI, ML and
DL algorithms to identify areas ofremediation and optimization.

PolyCloud and OneStop
We have introduced the OneStop
unified provisioning platform
for endpoints, clouds, software,and tools. The OneStop platform
lets project managers request IT
hardware and software in advance,
enabling new hires to be productive
on Day One. The IT Genie intuitive
app in the laptop helps users
self-configure basic applications,
reducing interactions with the IT
Support team.
The PolyCloud digital backplane
provides an abstraction of managed
private clouds and public cloudservices, empowering full stackdevelopers.

Public cloud adoption
Currently, more than 68% of theinternal IT application workload has
been migrated to public cloud. All
our employees have been enabled
for cloud-based collaboration formessaging, presence, video, andother requirements. The shift tocloud helped in optimizing the onpremises data center footprint. This
strategic shift also helped to scale up
the infra on demand and provision
IT services seamlessly for all the newhires inducted to the organization.
The Internet-first approach helped
to provide seamless service access inthe current hybrid work environment.

53

Delivering value

Social and Relationship Capital
Our Social and Relationship Capital guides us to bring the interests of our stakeholders to the fore.
As enterprises focus on reshaping their businesses in the digital era, we are helping our clients drive
transformation. Our social ambition focuses on serving the development of people by shaping
a future with meaningful opportunities for all. We deliver on expectations of nurturing social
innovations and enabling employability through skill training of communities.

Community

Our global CSR efforts address challenges across education, healthcare,women empowerment, science and research, environmental sustainability
and more.

Our ambition to serve thedevelopment of people by shaping afuture with meaningful opportunities
for all sums up our work with thecommunity. Technology serves as acatalyst in community development.
Infosys Springboard is Infosys’
flagship digital learning platform thatempowers people with skills to be
successful in the 21st century. About
5.3 million learners across India haveregistered on Infosys Springboard.

Performance highlights

86

Scientists honored with
the Infosys Prize since 200891%

Local hiring across geographies

114 mn +Lives empowered via
Tech for Good programs

8.5 mnLearners enabled in digital skills

Material topics• Client value• Inclusive development`517 cr

Global CSR spends• Digital skilling

UN SDG mapping

3.8 mnBeneficiaries of
CSR projects in India

Creating value for ourcustomers
Digital transformation
We help our customers navigate
their digital transformation journeys
through our suite of services andsolutions.
Our digital architecture drives
outcomes for enterprises acrossfive areas — Experience, Insight,
Innovate, Accelerate and Assure. Our
experience of helping many clients
through their digital transformation
journeys has shown us that a LiveEnterprise is one that is continuously
investing in reinventing its operating
model while reimagining customertransformations. Our clients count54

Springboard

Tech for Good
Infosys is committed to using digital,
cloud and open-source technologies
to drive societal impact in ourcommunities through partnershipsthat will enable our stakeholders toharness the power of technology
everyday.

Infosys Foundationon our operating models to help
navigate their next.
Details of our key customer services
and solutions are available athttps://www.infosys.com/industries/.

Digital operating models
We use our native digital innovation
expertise to partner with ourclients to develop future-readysolutions. Further, the Infosys Living
Labs enable clients to experienceemerging technologies to inspire
innovation and incubate new
possibilities.

Read more at https://www.infosys.
com/navigate-your-next/digitaloperating-models.html.

Client satisfaction
Our latest annual client survey
indicates that most of our clients aredelighted with Infosys, sustaining thepositive feedback gained over theyears. We have also been appreciatedfor our relationship management,client-centric approach, accountmanagement, base delivery andquality of deliverables.

Infosys Integrated Annual Report 2022-23

Infosys Foundation’s direct healthinterventions have focused onbringing critical services to some ofIndia’s poorest and strengthening theinstitutions that provide healthcare.
We helped All India Institute ofMedical Sciences (AIIMS), New
Delhi, procure best-in-class medical
equipment for the Mother and Child(MCH) Block. The Tech For Good
vision enabled us to procure a casemanagement system for AIIMS,
which includes a sophisticated 3D
rendering of imaging data for better
visualization and forms the backboneof all text and medical imaging datatransmission and archiving. Witha focus on education and women
Infosys Integrated Annual Report 2022-23

empowerment, the Foundation has
tied up with Avanti Fellows, Yuva
Unstoppable, eVidyaloka, Unnati, andNirmaan for various efforts.
The Aarohan Social Innovation
Awards launched by Infosys
Foundation seeks to encourage andreward individuals, teams and NGOs
for social solutions that have thepotential to bring about a significant
difference to the underprivileged
across India, at scale. In 2023, theInfosys Foundation has committed
up to `50 lakh per winner, with a
total award purse of `2 crore. Read
more at https://www.infosys.com/
infosys-foundation/aarohan-socialinnovation-awards.html.
Read the Infosys Foundation 2023
report at https://www.infosys.com/
infosys-foundation/about/reports.html.

Infosys Foundation USA
In fiscal 2023, Infosys Foundation
USA remained committed toinvesting in programs that help
bridge the digital skills gap. This
year alone, the Foundation brought
computer science and makerfocused educational programming
to 1.3 million students and 44,000
educators in the US.
The Foundation achieved
significant impact through targeted
partnerships and equity-focused
initiatives that deliver professional
development for educators; provide
afterschool coding programs
to children in marginalized
communities; spark imaginations inmakerspaces, museums, and libraries
and provide signature awards,
namely the CS Teaching ExcellenceAwards and the Infy Makers Awards,
that spotlight exceptional talent andinclusivity.
Read more at https://www.infosys.org/
infosys-foundation-usa/impact.html.

Infosys Science Foundation
The Infosys Science Foundation
awards the Infosys Prize thatendeavors to elevate the prestigeof science and research in India.
The award is given annually tohonor outstanding achievementsof contemporary researchers andscientists across six categories:
Engineering and Computer
Science, Humanities, Life Sciences,
Mathematical Sciences, PhysicalSciences and Social Sciences. Each
Prize carries a gold medal, a citation
and a purse of US$100,000. The workof the winners of the Infosys Prize
2022 tackles real world problems, likemaking healthcare and diagnostics
more accessible, designing social
policy to be inclusive, studying
neuroscience for better mental healthand presenting how our constitution
protects democratic polity.
Read more at https://www.
infosysprize.org/about-isf.html.

Suppliers
Infosys believes in and is committed
to partnering with the highest quality
diverse suppliers to ensure that
we deliver best-of-breed businessand IT solutions to our clients. Asa signatory to the United Nations
Global Compact, Infosys leverages
the UNGC principles covering
human rights, labor, environment,
and anti-corruption as foundational
principles for building and improving
its sustainable supply chain practices.
This year, we launched a dedicated
ESG learning portal for our supplierson Infosys Springboard. The portal
contains material on ESG learnings
and best practices, and provides
learners an opportunity to discuss,
ideate and engage on ESG topics.

55

STATUTORYREPORTS
56

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

57

Statutory reports

Board’s report
Dear members,
The Board of Directors hereby submits the report of the business and operations of your Company (“the Company” or “Infosys”), alongwith the audited financial statements, for the financial year ended March 31, 2023. The consolidated performance of the Company and its
subsidiaries has been referred to wherever required.

1. Results of our operations and state of affairs(In ` crore, except per equity share data)

Particulars

Standalone
For the year ended
March 31,

Revenue from operations
Other income, net
Total income

Consolidated

2023

2022

YoY
growth(%)

1,24,014

1,03,940

3,859

3,224

1,27,873
85,762For the year ended
March 31,
2023

2022

YoY
growth(%)

19.3

1,46,767

1,21,641

20.7

19.7

2,701

2,295

17.7

1,07,164

19.3

1,49,468

1,23,936

20.6

69,62923.2

1,02,353

81,998

24.8

Expenses
Cost of sales
Selling and marketing expenses

5,018

4,125

21.6

6,249

5,156

21.2

General and administration expenses

5,293

4,787

10.6

7,260

6,472

12.2

Total expenses

96,07378,54122.3

1,15,862

93,626

23.7

Profit / loss before finance cost and tax expenses

31,80028,623

11.1

33,60630,310

10.9

157

128

22.7

284

200

42.0

31,64328,495

11.0

33,322

30,110

10.7

25.5

27.4

22.7

24.8

Finance cost
Profit before tax
Profit before tax (% of revenue)
Tax expense

8,375

7,260

15.4

9,214

7,964

15.7

Profit after tax

23,26821,235

9.6

24,10822,146

8.9

18.8

20.4

16.4

18.2

Profit after tax (% of revenue)
Total other comprehensive income / (loss), net of tax

(268)

(48)

514

182

Total comprehensive income for the year attributable to theowners of the Company

23,00021,187

24,59822,293

Profit attributable to owners of the Company

23,26821,23524,095

22,110

–

–

13

36

Basic

55.48

50.27

10.4

57.63

52.52

9.7

Diluted

55.42

50.21

10.4

57.54

52.41

9.8

Non-controlling interests
Earnings per share (EPS)

1 crore = 10 million
Notes:
The above figures are extracted from the audited standalone and consolidated financial statements of the Company as per the Indian Accounting Standards(Ind AS).
Equity shares are at par value of `5 per share.

58

Infosys Integrated Annual Report 2022-23

Financial position(In ` crore, except equity share data)

Particulars

Standalone

Consolidated

As at March 31,

As at March 31,

2023

2022

2023

2022

Net current assets

24,64027,461

31,69533,582

Property, plant and equipment (including capital work-in-progress)

11,931

11,795

13,634

13,491

Right-of-use assets

3,561

3,311

6,882

4,823

214

243

8,997

7,902

Goodwill and other intangible assets
Other non-current assets

33,54931,601

25,422

24,484

Total assets

1,01,337

99,387

1,25,816

1,17,885

Non-current lease liabilities

3,553

3,228

7,057

4,602

Other non-current liabilities

2,597

1,877

3,778

3,944

Retained earnings – Opening balance

55,44957,51861,31362,643

Profit for the year

23,26821,23524,095

22,110Transfer from Special Economic Zone Re-investment Reserve on
utilization

1,397

1,012

1,464

1,100

(9)

0

(19)

0

Dividends(13,675)(12,700)(13,632)(12,655)

Buyback of equity shares (including tax on buyback)(11,096)(8,822)(11,096)(8,822)

Add:

Less:
Impact on adoption of amendment to Ind AS 37, Provisions,Contingent Liabilities and Contingent Assets

Transaction cost relating to buyback (net of tax)

(5)

–

(5)

–

Transfer to legal reserve

–

–

(3)

(10)

(21)

–

(21)

–

(3,125)(2,794)(3,139)(3,054)

–

–

–

1

Retained earnings – Closing balance

52,18355,44958,95761,313Equity share capital

2,074

2,103

2,069

2,098

Other reserves and surplus

13,752

11,75012,354

10,415

Other comprehensive income

(264)

4

2,027

1,524

–

–

388

386

Total equity

67,74569,30675,79575,736

Total equity and liabilities

1,01,337

99,387

1,25,816

1,17,885

Amount transferred to capital redemption reserve upon buyback
Transfer to Special Economic Zone Re-investment Reserve
Changes in controlling stake of the subsidiaries(1)

Non-controlling interest(1)

Excluding retained earnings

Infosys Integrated Annual Report 2022-23

59

Board’s report
Based on consolidated financial statements
Revenue distribution by geographical segments (in %)Revenue distribution by offerings (in %)61.7 61.8

57.0 62.2

43.0 37.8

24.8 25.7
10.6 9.9
2.9
North America

EuropeRest of the world

2.6

India

DigitalCore

Revenue distribution by business segments (in %)32.0 29.8

14.6 14.5

FS (1)
2022

12.5 12.3

Retail (2)COM (3)11.9 12.6

EURS (4)11.0 12.9

MFG (5)

8.2

8.1

Hi-Tech (6)

7.0

6.9

LS (7)

2.9

Others (8)

2023

(1)

FS – Includes enterprises in Financial Services and Insurance(2)

Retail – Includes enterprises in Retail, Consumer Packaged Goods and Logistics(3)

COM – Includes enterprises in Communication, Telecom OEM and Media(4)

EURS – Includes enterprises in Energy, Utilities, Resources and Services(5)

MFG – Includes enterprises in Manufacturing(6)

Hi-Tech – Includes enterprises in Hi-Tech(7)

LS – Includes enterprises in Life Sciences and Healthcare(8)

Others – Includes segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services

60

2.8

Infosys Integrated Annual Report 2022-23

Capital Allocation Policy

Liquidity

Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over a
five-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 Statementof Cash Flows prepared under IFRS. Dividend and buyback
include applicable taxes.

Our principal sources of liquidity are cash and cash equivalents,
investments and the cash flow that we generate from ouroperations. We continue to be debt-free and maintain sufficient
cash to meet our strategic and operational requirements. We
understand that liquidity in the Balance Sheet has to balance
between earning adequate returns and the need to coverfinancial and business requirements. Liquidity enables us to beagile and ready for meeting unforeseen strategic and businessneeds, and opportunities.

In line with the Capital Allocation Policy, the Board, at its meeting
held on October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (Maximum Buyback Size,excluding buyback tax) at a price not exceeding ₹1,850 per share(Maximum Buyback Price), subject to shareholders’ approval.

As of March 31, 2023, we had ₹24,640 crore in working capital ona standalone basis, and ₹31,695 crore on a consolidated basis.

The shareholders approved the proposal of buyback of equity
shares recommended by the Board of Directors by way of postal
ballot through e-voting and the result of which was declaredon December 3, 2022.
The buyback was offered to all equity shareholders of theCompany (other than the Promoters, the Promoter Group andPersons in Control of the Company) under the open market route
through the stock exchanges. The buyback of equity sharesthrough the stock exchanges commenced on December 7, 2022
and was completed on February 13, 2023. During this buyback
period, the Company purchased and extinguished a total of
6,04,26,348 equity shares from the stock exchanges at a volume
weighted average buyback price of ₹1,539.06 per equity sharecomprising 1.44% of the pre-buyback paid-up equity sharecapital of the Company. The buyback resulted in a cash outflow
of ₹9,300 crore (excluding transaction costs and tax on buyback).
The Company funded the buyback from its free reserves
including Securities Premium Account as explained in Section 68
of the Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2023, the Company has created a Capital Redemption
Reserve of ₹30 crore equal to the nominal value of the sharesbought back as an appropriation from the general reserveand retained earnings.
During the year ended March 31, 2023, the Company paid aninterim dividend of ₹16.5 per share and announced a final
dividend of ₹17.5 per share, subject to shareholders’ approvalin the ensuing AGM. After returning the above amounts,
the Company would have returned approximately 86% of
the cumulative free cash flow for fiscals 2020, 2021, 2022
and 2023 through dividends and buybacks, in line with theCapital Allocation Policy.

Consolidated cash and investments stand at ₹22,509 crore on astandalone basis and ₹31,286 crore on a consolidated basis as on
March 31, 2023, as against `29,950 crore on a standalone basis,and `37,419 crore on a consolidated basis as on March 31, 2022.
Consolidated cash and investments, on both standalone andconsolidated basis, include deposits with banks and financial
institutions with high credit ratings by international anddomestic credit rating agencies. As a result, liquidity risk ofcash and cash equivalents is limited. Ratings are monitored
periodically. Liquid assets also include investments in liquidmutual fund units, target maturity funds units, certificates ofdeposit (CDs), commercial paper (CP), quoted bonds issued bygovernment and quasi-government organizations, and nonconvertible debentures. CDs and CPs represent marketablesecurities of banks, NBFCs and eligible financial institutions for a
specified time period with high credit rating given by domestic
credit rating agencies. G-secs are highly liquid and marketable
instruments issued across tenure, backed by Government ofIndia carrying a sovereign credit. Investments made in nonconvertible debentures are issued by government-owned
institutions and financial institutions with high credit rating. We
invest 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 andfinancial institutions.
The details of these investments are disclosed underthe ‘non-current and current investments’ section in theStandalone and Consolidated financial statements in thisIntegrated Annual Report.

The Capital Allocation Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/capital-allocation-policy.pdf.

Infosys Integrated Annual Report 2022-23

61

Board’s report
Capital expenditure on tangible assets
Standalone

Consolidated`1,318 crore

46.6%`1,208 crore`1,100 crore

48.7%

46.2%

`2 crore`1,174 crore

43.2%`2 crore

0.1%

0.1%

`1,281 crore

53.8%`1,267 crore

51.2%`1,542 crore`1,510 crore

56.8%

53.3%

2023 Total - ` 2,477 crore2022 Total - ` 2,381 crore

Infrastructure

Infrastructure

Computer equipment
VehiclesComputer equipment

2023 Total - ` 2,830 crore2022 Total - ` 2,716 crore

Infrastructure

Infrastructure

Computer equipment
VehiclesComputer equipment

LeasesStandalone

Consolidated`847 crore

24.2%`510 crore

57.9%

81.8%

`68 crore

18.2%`371 crore

42.1%

2023

62

`449 crore`306 crore

49.1%`8 crore`6 crore

0.2%

0.7%

`2,646 crore`459 crore

75.6%

Total - ` 881 crore2022

Total - ` 374 crore2023 Total - ` 3,501 crore

50.2%

2022

Total - ` 914 crore

Buildings

Buildings

Buildings

Buildings

Computer equipment

Computer equipment

Computer equipment

Computer equipment

Vehicles

VehiclesInfosys Integrated Annual Report 2022-23

Dividend
The Company recommended / declared dividend as under:
Fiscal 2023
Dividend pershare (in `)Fiscal 2022

Dividend payout(in ` crore)

Dividend pershare (in `)Dividend payout(in ` crore)

Interim dividend

16.50

6,943

15.00

6,308

Final dividend

17.50 (1)7,260 (1)

16.00

6,731

Total dividend
Payout ratio (interim and final dividend) *

34.00

31.00

69.5% (2)

57.2%

Note:
The Company declares and pays dividend 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.
* Payout ratio is computed as a percentage of free cash flow prepared under IFRS.
(1)

Recommended by the Board of Directors at its meeting held on April 13, 2023. The payment is subject to the approval of the shareholders at the ensuing
AGM of the Company to be held on June 28, 2023. The record date for the purposes of the final dividend will be June 2, 2023 and payment will be made on
July 3, 2023.

(2)

Our present Capital Allocation Policy is to pay approximately 85% of the free cash flow cumulatively over a five-year period through a combination of semiannual 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. Including buyback, theCompany has returned 86% of the cumulative free cash flow for the years ended March 31, 2020, 2021, 2022 and 2023.

Particulars of loans, guarantees or investments

Board policies

Loans, guarantees and investments covered under Section 186 of
the Companies Act, 2013 form part of the Notes to the financial
statements provided in this Integrated Annual Report.

The details of the policies approved and adopted by the Board
as required under the Companies Act, 2013 and Securities andExchange Board of India (SEBI) regulations are provided in
Annexure 8 to the Board’s report.

Transfer to reserves
We do not propose to transfer any amount to general reserve on
declaration of dividend.

Fixed deposits

Material changes and commitments affecting
financial position between the end of thefinancial year and date of the report

We have not accepted any fixed deposits, including from thepublic, and, as such, no amount of principal or interest wasoutstanding as of the Balance Sheet date.

There have been no material changes and commitments which
affect the financial position of the Company that have occurred
between the end of the financial year to which the financial
statements relate and the date of this report.

Particulars of contracts or arrangements madewith related parties

2. Business description

There were no contracts, arrangements or transactions enteredinto during fiscal 2023 that fall under the scope of Section
188(1) of the Companies Act, 2013. As required under theCompanies Act, 2013, the prescribed Form AOC-2 is appended as
Annexure 2 to the Board’s report.

Our clients and prospective clients are faced with transformative
business opportunities due to advances in software andcomputing technology. These organizations are dealing with thechallenge of having to reinvent their core offerings, processes
and systems rapidly and position themselves as ‘digitallyenabled’ or ‘digital first’ organisations. The journey to the digital
future requires not just an understanding of new technologies
and new ways of working, but a deep appreciation of existing
technology landscapes, business processes and practices. Our
strategy is to be a navigator for our clients as they ideate, planand execute their journey to a digital future.

Management’s discussion and analysis
In terms of the provisions of Regulation 34 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015(“Listing Regulations”), the Management’s discussion and analysis
is set out in this Integrated Annual Report.

Risk management report
In terms of the provisions of Section 134 of the Companies
Act, 2013, the Risk management report is set out in thisIntegrated Annual Report.

Infosys Integrated Annual Report 2022-23

Strategy

For details of our continued investments and outcomesof our strategic initiatives, refer to the Strategy section of
the Integrated Report.

63

Board’s report
Organization

3. Human resources management

Our go-to-market business units and solutions are detailed in the
Operating context section of the Integrated Report.

Our employees are our most important assets. We are committed
to hiring and retaining the best talent and being among theindustry’s leading employers. For this, we focus on promoting acollaborative, transparent and participative organization culture,and rewarding merit and sustained high performance. Our humanresources management focuses on allowing our employees todevelop their skills, grow in their career and navigate their next.

Infrastructure
There has been a net movement of 3.02 million sq. ft. of physicalinfrastructure space during the year. The total available space as
on March 31, 2023 stands at 56.86 million sq. ft. We have presencein 56 countries across 274 locations as on March 31, 2023.

Mergers and Acquisitions (M&A)
Infosys has a systematic M&A approach aimed to strengthen
digital services capabilities, deepen industry expertise, andexpand geographical footprint.
During the fiscal year ended March 31, 2023, the Group
completed two business combinations to complement its digitalofferings by acquiring 100% voting interests in:a. oddity GmbH, oddity group services GmbH, oddity space
GmbH, oddity jungle GmbH, oddity code GmbH and oddity
waves GmbH (collectively known as oddity), a Germanybased digital marketing, experience, and commerce
agency, on April 20, 2022.
b. BASE life science A/S, a consulting and technology firm in theLife Science industry in Europe, on September 1, 2022.
These acquisitions are expected to strengthen the Group’s
creative, branding and experience design capabilities andaugment the Group’s life sciences expertise, scales its digitaltransformation capabilities with cloud-based industry solutions
and expand its presence across Europe.

Subsidiaries
We, along with our subsidiaries, provide consulting, technology,
outsourcing and next-generation digital services. At the
beginning of the year, we had 27 direct subsidiaries and
50 step-down subsidiaries. As on March 31, 2023, we have
28 direct subsidiaries and 70 step-down subsidiaries. Further,
the Company does not have any material subsidiary. The changes
in subsidiaries during the year are included in the Standalone
financial statements of the Company.
During the year, the Board of Directors reviewed the affairs of thesubsidiaries. In accordance with Section 129(3) of the Companies
Act, 2013, we have prepared the Consolidated financial statementsof the Company, which form part of this Integrated Annual
Report. Further, a statement containing the salient features ofthe financial statements of our subsidiaries in the prescribed
format AOC-1 is appended as Annexure 1 to the Board’s report.
The statement also provides details of the performance andfinancial position of each of the subsidiaries, along with thechanges that occurred, during fiscal 2023.
In accordance with Section 136 of the Companies Act, 2013,
the audited financial statements, including the Consolidated
financial statements and related information of the Company
and audited accounts of its subsidiaries, are available on our
website, at www.infosys.com.

64

Internal Committee (formerly Internal Complaints
Committee)
Infosys’ goal has always been to create an open and safe
workplace for every employee to feel empowered, irrespectiveof gender, sexual preferences, and other factors, and contributeto the best of their abilities. Towards this, the Company has
set up the Anti-Sexual Harassment Initiative (ASHI), which
proudly completes 23 years of enabling a positive and safe work
environment for our employees. Our ASHI practices have set anindustry benchmark as it ranked first among 350+ companies
that participated in an external survey on the best anti-sexual
harassment initiatives in 2017, 2019, 2020, 2021 and 2022.
Infosys has constituted an Internal Committee (IC) in all thedevelopment centers of the Company in India to consider andresolve all sexual harassment complaints reported by women.
The IC has been constituted as per the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013, and the committee includes external members from
NGOs or with relevant experience. Investigations are conducted
and decisions made by the IC at the respective locations, anda senior woman employee is the presiding officer over everycase. Half of the total members of the IC are women. The role ofthe IC is not restricted to mere redressal of complaints but also
encompasses prevention and prohibition of sexual harassment.
In the last few years, the IC has worked extensively on creatingawareness on relevance of sexual harassment issues in the
new normal by using new and innovative measures to help
employees understand the forms of sexual harassment whileworking remotely. The details of sexual harassment complaints
that were filed, disposed of and pending during the financial
year are provided in the Business Responsibility and Sustainability
Report of this Integrated Annual Report.

Particulars of employees
The Company had 2,72,665 employees on standalone basis and3,43,234 employees on consolidated basis as of March 31, 2023.
The percentage increase in remuneration, ratio of remunerationof each director and key managerial personnel (KMP) (as required
under the Companies Act, 2013) to the median of employees’
remuneration, and the list of top 10 employees in terms of
remuneration drawn, as required under Section 197(12) of
the Companies Act, 2013, read with Rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules,
2014, form part of Annexure 3 to this Board’s report. The statement
containing particulars of employees employed throughout
the year and in receipt of remuneration of `1.02 crore or more
per annum and employees employed for part of the year andin receipt of remuneration of `8.5 lakh or more per month, as
required under Section 197(12) of the Companies Act, 2013, readwith Rule 5 of the Companies (Appointment and Remuneration
Infosys Integrated Annual Report 2022-23

of Managerial Personnel) Rules, 2014, is provided in a separate
exhibit forming part of this report and is available on the websiteof the Company, at https://www.infosys.com/investors/reportsfilings/Documents/exhibitboards-report2023.pdf. The Integrated
Annual Report is being sent to the shareholders excluding
the aforesaid exhibit. Shareholders interested in obtaining
this information may access the same from the Company
website. In accordance with Section 136 of the Companies Act,
2013, this exhibit is available for inspection by shareholders
through electronic mode.
Notes:
1. The employees mentioned in the aforesaid exhibit have / had permanent
employment contracts with the Company.
2. The employees are neither relatives of any directors of the Company,
nor hold 2% or more of the paid-up equity share capital of the Company
as per Rule 5 of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014.
3. The details of employees posted outside India and in receipt of a
remuneration of `60 lakh or more per annum or `5 lakh or more a monthcan be made available on specific request.

Employee stock options / Restricted Stock Units (RSUs)
The Company grants share-based benefits to eligible employeeswith a view to attracting and retaining the best talent,
encouraging employees to align individual performances with
Company objectives, and promoting increased participation bythem in the growth of the Company.
Infosys Expanded Stock Ownership Program 2019(“the 2019 Plan”)
On June 22, 2019, pursuant to approval by the shareholders in
the AGM, the Board has been authorized to introduce, offer,issue and provide share-based incentives to eligible employeesof the Company and its subsidiaries under the 2019 Plan.
The maximum number of shares under the 2019 Plan shallnot 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 the Infosys Expanded Stock
Ownership Trust. The RSUs granted under the 2019 Plan shallvest based on the achievement of defined annual performanceparameters as determined by the administrator (the 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 the administrator.
Each of the above performance parameters will be distinct forthe purposes of calculation of the quantity of shares to vest
based on performance. These instruments will generally vest
between a minimum of one and a maximum of three 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 employeesof the Company and its subsidiaries under the 2015 Plan.
The maximum number of shares under the 2015 Plan shall not
exceed 2,40,38,883 equity shares (not adjusted for bonus issue).
These instruments will vest generally over a period of four years
and shall be exercisable within the period as approved by the
Nomination and Remuneration Committee. The exercise price
Infosys Integrated Annual Report 2022-23of the RSUs will be equal to the par value of the shares and theexercise price of the stock options would be the market price ason the date of grant.
Consequent to the September 2018 bonus issue, all the thenoutstanding options granted under the stock option plan havebeen adjusted for bonus shares.
The total number of equity shares and American Depositary
Receipts (ADRs) to be allotted to the employees of the Company
and its subsidiaries under the 2015 Plan does not cumulatively
exceed 1% of the issued capital. For the shares and ADRs issued
under the 2019 Plan, the cumulative amount does not exceed
1.15% of the issued capital. The 2019 Plan and 2015 Plan are incompliance with SEBI (Share Based Employee Benefits and Sweat
Equity) Regulations, 2021, as amended from time to time, andthere has been no material change to the plans during the fiscal.
The details of the 2019 Plan and 2015 Plan, including terms ofreference, and the requirement specified under Regulation 14of the SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021, are available on the Company’s website, at
https://www.infosys.com/investors/reports-filings/Documents/
disclosures-pursuant-SEBI-regulations2023.pdf.
The details of the 2019 Plan and 2015 Plan form part of
the Notes to accounts of the financial statements in thisIntegrated Annual Report.

4. Corporate governanceOur corporate governance philosophy
Our corporate governance practices are a reflection of our value
system encompassing our culture, policies, and relationships
with our stakeholders. Integrity and transparency are key to our
corporate governance practices to ensure that we gain and retain
the trust of our stakeholders at all times. Corporate governanceis about maximizing shareholder value legally, ethicallyand sustainably. At Infosys, the Board exercises its fiduciary
responsibilities in the widest sense of the term. Our disclosuresseek to attain the best practices in international corporate
governance. We also endeavor to enhance long-term shareholder
value and respect minority rights in all our business decisions.
Our Corporate governance report for fiscal 2023 forms part of thisIntegrated Annual Report.

Board diversity
The Company recognizes and embraces the importance of adiverse Board in its success. We believe that a truly diverse Board
will leverage differences in thought, perspective, regional andindustry experience, cultural and geographical background,age, ethnicity, race, gender, knowledge and skills including
expertise in financial, diversity, global business, leadership,
information technology, mergers and acquisitions, Board service
and governance, sales and marketing, Environmental, Social andGovernance (ESG), risk management and cybersecurity and otherdomains, which will ensure that Infosys retains its competitive
advantage. The Board Diversity Policy adopted by the Board setsout its approach to diversity.
The policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/board-diversity-policy.pdf.
65Board’s report
Additional details on Board diversity are available in
the Corporate governance report that forms part of thisIntegrated Annual Report.

Directors and KMP

Number of meetings of the Board

1. The shareholders at the 41st AGM held on June 25, 2022
reappointed Salil Parekh as CEO and MD effective July 1, 2022
till March 31, 2027.
2. The shareholders vide postal ballot concluded on March
31, 2023 approved the appointment of Govind Iyer, as anindependent director effective January 12, 2023, for a term of
five (5) years till January 11, 2028.
3. The Board, based on the recommendation of Nomination
and Remuneration Committee, appointed D. Sundaramas Lead Independent Director of the Company, effective
March 23, 2023.
4. Based on the recommendations of the Nomination andRemuneration Committee and the Audit Committee, theBoard appointed Shaji Mathew as a Group Head of Human
Resources and further designated as an executive officer
effective March 22, 2023, for the purpose of reporting under
the rules of the U.S. Securities and Exchange Commission and
Key Managerial Personnel as defined under Ind AS 24, Related
Party Disclosures.

The Board met eight times during the financial year. The meeting
details are provided in the Corporate governance report that
forms part of this Integrated Annual Report. The maximum
interval between any two meetings did not exceed 120 days, asprescribed by the Companies Act, 2013.

Policy on directors’ appointment and remuneration
The current policy is to have an appropriate mix of executive,
non-executive and independent directors to maintain the
independence of the Board and separate its functions ofgovernance and management. As of March 31, 2023, the Board
had eight members, consisting of an executive director,
a non-executive and non-independent director and six
independent directors. One of the independent directors of
the Board is a woman. The details of Board and committee
composition, tenure of directors, areas of expertise and otherdetails are available in the Corporate overview section that forms
part of this Integrated Annual Report.
The policy of the Company on directors’ appointment
and remuneration, including the criteria for determining
qualifications, positive attributes, independence of a director andother matters, as required under sub-section (3) of Section 178 of
the Companies Act, 2013, is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/nomination-remuneration-policy.pdf.
We affirm that the remuneration paid to the directors is as
per the terms laid out in the Nomination and Remuneration
Policy of the Company.

Declaration by independent directors
The Company has received necessary declaration from eachindependent director under Section 149(7) of the Companies Act,
2013, that he / she meets the criteria of independence laid down in
Section 149(6), Code for independent directors of the Companies
Act, 2013 and of the Listing Regulations.

Board evaluation
The Nomination and Remuneration Committee engaged Egon
Zehnder, external consultants, to conduct Board evaluation
for the year. The evaluation of all the directors, committees,
Chairman of the Board, and the Board as a whole, was conductedbased on the criteria and framework adopted by the Board.
The Board evaluation process was completed during fiscal 2023.
The evaluation parameters and the process have been explainedin the Corporate governance report.

Familiarization program for independent directors
All new independent directors inducted into the Board attend an
orientation program. The details of the training and familiarization
program are provided in the Corporate governance report. Further,at the time of the appointment of an independent director, theCompany issues a formal letter of appointment outlining his / herrole, function, duties and responsibilities. The format of the letterof appointment is available on our website, at
https://www.infosys.com/investors/corporate-governance/
Documents/appointment-independent-director.pdf.
66

Inductions

In the opinion of the Board, the independent directors
appointed during the year possess requisite integrity, expertise,
experience and proficiency.

Retirements and resignations
1. Ravi Kumar S., President (KMP), has resigned effective
October 11, 2022. The Board of Directors placed on record its
appreciation for the services rendered by him.
2. Mohit Joshi, President, resigned from the Company. He is on
leave from March 11, 2023 and will stay on leave till the lastdate with the Company i.e. June 9, 2023. The Board placed onrecord its appreciation for the services rendered by him.
3. Krishnamurthy Shankar, Group Head of Human Resources(KMP), retired on March 21, 2023. He led the developmentof a strong employee value proposition, helped build adigital skills-based ecosystem and enabled digital career
paths for employees. The Board placed on record its sincere
appreciation for his contributions to the Company.
4. Kiran Mazumdar-Shaw, Lead Independent Director, retired as
member of the Board of Directors on completion of tenure
effective March 22, 2023. The Board placed on record theirappreciation for Ms. Shaw’s invaluable contribution, guidance,and strategic vision, that has helped the Company build andexecute a resilient growth strategy.
5. The Board took note of Uri Levine’s retirement as an
Independent Director effective April 19, 2023 uponcompletion of his term. The Board placed on record its sincere
appreciation for his contributions to the Company.

Committees of the Board
As on March 31, 2023, the Board had six committees: the Audit
Committee, the Corporate Social Responsibility Committee, theNomination and Remuneration Committee, the Risk Management
Committee, the Stakeholders Relationship Committee, theEnvironment, Social and Governance (ESG) Committee.
Infosys Integrated Annual Report 2022-23

All committees comprise only independent directors, one ofwhom is chosen as the chairperson of the committee.
Additionally, the Board had incorporated a Cybersecurity Risk
Sub-Committee of the Risk Management Committee.
During the year, all recommendations made by the committees
were approved by the Board.
A detailed note on the composition of the Board and its
committees is provided in the Corporate governance report, whichforms part of this Integrated Annual Report.

Internal financial control and its adequacy
The Board has adopted policies and procedures for ensuring
the orderly and efficient conduct of its business, including
adherence to the Company’s policies, safeguarding of its assets,
prevention and detection of fraud, error-reporting mechanisms,
accuracy and completeness of the accounting records, and timely
preparation of reliable financial disclosures. For more details,
refer to the ‘Internal control systems and their adequacy’ sectionin the Management’s discussion and analysis, which forms part ofthis Integrated Annual Report.

Cybersecurity
At Infosys, as our employees operate efficiently as a hybrid
workforce, we continued to remain vigilant on the evolving
cybersecurity threat landscape. In our endeavor to maintain arobust cybersecurity posture, the team has remained abreast of
emerging cybersecurity events globally, so as to achieve higher
compliance and its continued sustenance. We continue to becertified against the Information Security Management System(ISMS) Standard ISO 27001:2013. Additionally, we have also
been attested on SSAE 18 SOC 1 and SOC 2 by an independent
audit firm. During the year, our focus on our cybersecurity
personnel training, reskilling, and building a security culture ofcollective onus, encouraging shift left, enabling the developer
community with dedicated courses and resource kits went ahead
as planned, together with our overall initiatives on improving
cybersecurity processes, technologies and posture.

Significant and material orders
There are no significant and material orders passed by theregulators or courts or tribunals impacting the going concern
status and the Company’s operations in future.

Reporting of frauds by auditors
During the year under review, neither the statutory auditors nor
the secretarial auditor has reported to the Audit Committee, under
Section 143 (12) of the Companies Act, 2013, any instances of fraudcommitted against the Company by its officers or employees, thedetails of which would need to be mentioned in the Board’s report,
which forms part of this Integrated Annual Report.

Listing on stock exchanges
The Company’s shares are listed on BSE Limited and the National
Stock Exchange of India Limited, and its ADSs are listed on the
New York Stock Exchange (NYSE).

Investor Education and Protection Fund (IEPF)
During the year, the Company has transferred the unclaimed
and un-encashed dividends of ₹2,43,11,422. Further, 4,47,153
corresponding shares on which dividends were unclaimed forseven consecutive years were transferred as per the requirementsof the IEPF Rules. The details of the resultant benefits arising outof shares already transferred to the IEPF, year-wise amounts of
unclaimed / un-encashed dividends lying in the unpaid dividend
account up to the year, and the corresponding shares, which are
liable to be transferred, are provided in the Corporate governancereport and are also available on our website, at www.infosys.com/
IEPF. Details of shares / dividend transferred to IEPF can also be
obtained by accessing https://www.iepf.gov.in/IEPFWebProject/
SearchInvestorAction.do?method=gotoSearchInvestor\.
Members are requested to claim the dividend(s), which haveremained unclaimed/unpaid, by sending a written request to theCompany at investors@infosys.com or to the Company’s Registrar
and Transfer Agent KFin Technologies Limited at einward.ris@
kfintech.com or at their address at KFin Technologies Limited,
Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial
District, Nanakramguda, Serilingampally Mandal, Hyderabad
500032. Members can find the details of Nodal officer appointed
by the company under the provisions of IEPF at
https://www.infosys.com/investors/shareholder-services/
unclaimed-dividend-shares.html.

Directors’ responsibility statement
The financial statements are prepared in accordance with
the Indian Accounting Standards (Ind AS) under the historicalcost convention on accrual basis except for certain financial
instruments, which are measured at fair values, the provisionsof the Companies Act, 2013 and guidelines issued by SEBI.
The Ind AS are prescribed under Section 133 of the Companies
Act, 2013, read with Rule 3 of the Companies (Indian AccountingStandards) Rules, 2015 and relevant amendment rules issued
thereafter. Accounting policies have been consistently applied
except where a newly-issued accounting standard is initiallyadopted or a revision to an existing accounting standard requiresa change in the accounting policy hitherto in use.
The directors confirm that:••

Annual return
In accordance with the Companies Act, 2013, the annual returnin the prescribed format is available at https://www.infosys.com/
investors/reports-filings/documents/annual-returns-2022-23.pdf.

Secretarial standards
The Company complies with all applicable secretarial standards
issued by the Institute of Company Secretaries of India.

Infosys Integrated Annual Report 2022-23•

In preparation of the annual accounts for the financial year
ended March 31, 2023 , the applicable accounting standards
have been followed and there are no material departures.
They have selected such accounting policies and appliedthem consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fairview of the state of affairs of the Company at the end of thefinancial year and of the profit of the Company for that period.
They have taken proper and sufficient care towards themaintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 2013 forsafeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.

67

Board’s report•••

They have prepared the annual accounts on a going
concern basis.
They have laid down internal financial controls, which areadequate and are operating effectively.
They have devised proper systems to ensure compliance withthe provisions of all applicable laws, and such systems areadequate and operating effectively.

5. Audit reports and auditors
Audit reports
The Auditors’ Report for fiscal 2023 does not containany qualification, reservation, or adverse remark.
The Report is enclosed with the Financial statements in thisIntegrated Annual Report.
The Secretarial Auditors’ Report for fiscal 2023 does not containany qualification, reservation, or adverse remark. The Secretarial
Auditors’ Report is enclosed as Annexure 5 to the Board’s report,
which forms part of this Integrated Annual Report.
The Auditor’s certificate confirming compliance with conditionsof corporate governance as stipulated under Listing Regulations,for fiscal 2023 is enclosed as Annexure 4 to the Board’s report,
which forms part of this Integrated Annual Report.
The Secretarial Auditor’s certificate on the implementation ofshare-based schemes in accordance with SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021, will bemade available on request at the AGM, electronically.

Auditors
Statutory auditor
Deloitte Haskins & Sells LLP, Chartered Accountants (Firmregistration number 117366W/W-100018) (“Deloitte”) was
appointed as the statutory auditors of the Company, to holdoffice for the second term of five consecutive years from theconclusion of the 41st AGM of the Company held on June 25, 2022,
till the conclusion of the 46th AGM to be held in 2027, as required
under Section 139 of the Companies Act, 2013 read with theCompanies (Audit and Auditors) Rules, 2014.
Secretarial auditor
Makarand M. Joshi & Co., Company Secretaries (FCS: 5533,
CP: 3662), are appointed as secretarial auditor of the Company
for fiscal 2024, as required under Section 204 of the Companies
Act, 2013 and Rules thereunder.

Cost records and cost audit
Maintenance of cost records and requirement of cost audit
as prescribed under the provisions of Section 148(1) of theCompanies Act, 2013 are not applicable for the business activities
carried out by the Company.

6. Corporate social responsibility (CSR)
Infosys has been an early adopter of CSR initiatives. The Company
works primarily through the Infosys Foundation, towards
supporting projects in the areas of education, healthcare,women empowerment, sustainability, rehabilitating thedestitute, preserving Indian art and culture, rural development
and disaster relief.

68

The Company’s CSR Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
Documents/corporate-social-responsibility-policy.pdf.
The annual report on our CSR activities is appended as Annexure
6 to the Board’s report. Infosys also undertakes CSR initiatives
outside of India, in US, Australia, and across Europe in UK,
Germany, France and Ukraine. The initiatives in the US are carriedout through Infosys Foundation USA. The said initiatives are over
and above the statutory requirement.
The highlights of the initiatives undertaken by the Company,
Infosys Foundation, and Infosys Foundation USA form part of thisIntegrated Annual Report.

7. Conservation of energy, research anddevelopment, technology absorption, foreignexchange earnings and outgo
The particulars, as prescribed under sub-section (3)(m) of Section
134 of the Companies Act, 2013, read with the Companies(Accounts) Rules, 2014, are enclosed as Annexure 7 to the Board’s
report, which forms part of this Integrated Annual Report.

Business Responsibility and Sustainability
Report (BRSR)
In November 2018, the Ministry of Corporate Affairs (MCA)
constituted a Committee on Business Responsibility Reporting(“the Committee”) to finalize business responsibility reporting
formats for listed and unlisted companies, based on the frameworkof the National Guidelines on Responsible Business Conduct(NGRBC). Through its report, the Committee recommended that
BRR be rechristened BRSR, where disclosures are based on ESG
parameters, compelling organizations to holistically engage withstakeholders and go beyond regulatory compliances in terms ofbusiness measures and their reporting.
The BRSR disclosures form a part of this Integrated Annual
Report. The non-financial sustainability disclosures have been
independently assured by KPMG.

Environmental, Social and Governance (ESG)In October 2020, we launched our ESG Vision 2030. Our focus
is steadfast on leveraging technology to battle climate change,
water management and waste management. On the social front,
our emphasis is on the development of people, especially inthe areas of digital skilling, improving diversity and inclusion,facilitating employee wellness and experience, delivering
technology for good and energizing the communities we workin. We are also redoubling our efforts to serve the interests of all
our stakeholders, by leading through our core values and setting
benchmarks in corporate governance.
The ESG Committee was constituted by the Board with effectfrom April 14, 2021, to discharge its oversight responsibility on
matters related to organization-wide ESG initiatives, priorities,
and leading ESG practices. The ESG Committee reports to theBoard and meets every quarter to review progress on the ESG
ambitions articulated in our ESG Vision 2030.

Infosys Integrated Annual Report 2022-23

Acknowledgments
We thank our clients, vendors, investors, bankers, employee volunteers and trustees of Infosys Foundation, Infosys Foundation USA and
Infosys Science Foundation for their continued support during the year. We place on record our appreciation for the contribution madeby our employees at all levels. Our consistent growth was made possible by their hard work, solidarity, cooperation and support.
We thank the governments of various countries where we have our operations. We thank the Government of India, particularly
the Ministry of Labour and Employment, the Ministry of Environment and Forests, the Ministry of New and Renewable Energy, theMinistry of Communications, the Ministry of Electronics and Information Technology (Dept of IT), the Ministry of Commerce andIndustry, the Ministry of Finance, the Ministry of Corporate Affairs, the Central Board of Direct Taxes, the Central Board of Indirect
Taxes and Customs, GST authorities, the Reserve Bank of India, Securities and Exchange Board of India (SEBI), various departments
under the state governments and union territories, the Software Technology Parks (STPs) / Special Economic Zones (SEZs) – Bengaluru,
Bhubaneswar, Chandigarh, Chennai, Coimbatore , Gurugram, Hubballi, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Mangaluru, Mohali,
Mumbai, Mysuru, Nagpur, Noida, Pune, Thiruvananthapuram, Visakhapatnam – and other government agencies for their support,
and look forward to their continued support in the future. We also thank the US federal government, the U.S. Securities and Exchange
Commission, the Internal Revenue Service, and various state governments, especially those of Indiana, Rhode Island, Connecticut, Texas,
Arizona and North Carolina.
for and on behalf of the Board of Directors

Bengaluru
April 13, 2023

Infosys Integrated Annual Report 2022-23

Sd/-

Sd/-

D. Sundaram

Salil Parekh

Lead Independent Director

Chief Executive Officer
and Managing Director

69

70

Annexures to the Board’s Report

Annexure I – Statement containing the salient features of the financial statements of subsidiaries / associatecompanies / joint ventures(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the companies (Accounts) Rules, 2014 - AOC -1)(In ₹ crore, except % of shareholding and exchange rate)

Infosys Integrated Annual Report 2022-23

Sl. Name of the
No. subsidiary

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

1

Infosys BPM
Limited (2)India

Mar 31,
2023

NA

INR

34

4,404 6,631

2,193

2,620

7,529

1,122

276

846

100.002

Infosys
McCamish
Systems
LLC (3)US

Dec 31,2022

Dec 4,
2009

1 USD =
₹82.73

175

925 4,710

3,610

–

3,691

339

65

274

100.00

3

EdgeVerve
Systems
Limited(EdgeVerve)

India

Mar 31,
2023

NA

INR

1,312

155 2,248

781

405

3,446

1,268

338

930

100.004

InfosysAutomotiveand MobilityGmbH & Co.
KG

Germany

Dec 31,2022

NA

1 EUR =
₹88.1415(424) 5,685

6,094

–

2,509

(310)

–

(310)

100.005

Infosys Public US
Services, Inc.
USA (Infosys
PublicServices)

Mar 31,2023

NA

1 USD =
₹82.1798

910 1,570

562

–

1,829

214

61

153

100.006

Infy
Consulting
Company
Ltd (4)

UK

Mar 31,2023

NA

1 GBP =
₹101.65

135

96

752

521

–

1,782

57

17

40

100.007StaterNederland
B.V. (5)The
Dec 31,
Netherlands 2022

NA

1 EUR =
₹88.14

8

143

424

273

–

1,260

(2)

–

(2)

75.00

8

Infosys
China
Technologies(China) Co.
Limited(Infosys
China)NA

1 RMB =
₹11.91

368

55

857

434

–

1,084

103

–

103

100.00Dec 31,2022

Infosys Integrated Annual Report 2022-23

Sl. Name of the
No. subsidiary

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

9

Infosys
Poland Sp. z
o.o. (3)PolandMar 31,
2023

Oct 1,
2007

1 PLN =
₹19.174

802 1,258

452

87

1,048

107

23

84

100.00

10

WongDoody,
Inc (6)(7)US

Dec 31,2022

NA

1 USD =
₹82.73

1

287

439

151

–

963

149

31

118

100.0011

Blue Acorn iCi US
Inc (formerly
Beringer
CommerceInc) (8)Dec 31,
2022

Oct 27,2020

1 USD =
₹82.73

6

168

286

112

–

638

37

(1)

38

100.0012

Outboxsystems Inc.
dba Simplus(US) (8)US

Jan 31,
2023

Mar 13,2020

1 USD =
₹81.93

263

(167)

300

204

2

622

(45)

(78)

33

100.0013

InfosysCompaz PTE.
Ltd (9)SingaporeMar 31,
2023

Nov 16,2018

1 SGD =
₹61.79

13

223

498

262

–

604

42

5

37

60.00

14

Infosys
MexicoTechnologies
S. de R. L. de
C. V. (Infosys
Mexico)Dec 31,2022

NA

1 MXN =
₹4.25

65

364

565

136

–

538

61

15

46

100.0015

Infosys
China
Technologies(Shanghai)Company
Limited(Infosys
Shanghai)

Dec 31,2022

NA

1 RMB =
₹11.91

1,004

(408)

998

402

–

476

(89)

–

(89)

100.0016

Infosys
Consulting
GmbH (4)Germany

Dec 31,2022

NA

1 EUR =
₹88.14

17

50

204

137

–

442

4

5

(1)

100.0017

Infosys
Consulting
AG (4)

Switzerland

Dec 31,2022

NA

1 CHF =
₹89.6

1

85

293

207

–

424

49

13

36

100.0018

Infosys
Czech(CzechRepublic
Republic)
Limited s.r.o (3)Mar 31,2023

NA

1 CZK =
₹3.81

3

107

352

242

–

412

(9)

(2)

(7)

100.0071

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

19

HIPUS Co.,Ltd (9)Japan

Mar 31,
2023

Nov 16,2018

1 JPY =
₹0.62

32

20

Infosys
Consulting
Ltda.

BrazilDec 31,2022

NA

1 BRL =
₹15.65

421

(324)

21

Infosys
Consulting
S.R.L.

Romania

Dec 31,2022

NA

1 RON =
₹17.8317

22

Panaya Ltd. (10) Israel

Dec 31,2022

NA

1 USD =
₹82.7323

PortlandGroup Pty
Ltd (3)Australia

Mar 31,
2023

24

Stater N.V. (9)25

Fluido Oy (11)26

Infosys Integrated Annual Report 2022-23

1,326

–

349

31

10

21

81.00

320

223

–

330

25

17

8

100.00

50

164

97

–

318

18

5

13

100.00

256

(921)

368

1,033

–

315

35

5

30

100.00

Jan 4, 2012 1 AUD =₹55.03

18

74

244

152

–

312

41

12

29

100.00The
Dec 31,
Netherlands 2022

May 23,
2019

1 EUR =
₹88.14

38

612

994

344

–

290

162

22

140

75.00

FinlandDec 31,
2022

Oct 11,2018

1 EUR =
₹88.14

5

125

206

76

–

286

15

2

13

100.00

Kaleidoscope US
Animations
Inc(8)

Dec 31,2022

Oct 9,
2020

1 USD =
₹82.73

–

99

119

20

–

264

23

5

18

100.0027

Infosys
Singapore
Pte. Ltd.
(Infosys
Singapore)Dec 31,2022

NA

1 SGD =
₹61.662,886

50 4,586

1,650

–

227

24

(7)

31

100.0028

Infosys
SwedenTechnologies(Sweden)AB (Infosys
Sweden)Dec 31,2022

NA

1 SEK =
₹7.92

2

117

208

89

–

199

48

10

38

100.0029

InfosysAustralia
Management
Consulting
Pty. Limited (4)Dec 31,2022

NA

1 AUD =
₹56.17

17

19

66

30

–

197

14

4

10

100.0030StaterBelgium
N.V./S.A. (12)Belgium

Dec 31,2022

NA

1 EUR =
₹88.14

54

34

215

127

–

191

10

4

6

75.00

31

GuideVision,
s.r.o. (13)Czech
Republic

Dec 31,
2022

Oct 1,
2020

1 CZK =
₹3.65

–

66

117

51

–

175

22

6

16

100.00Singapore

80 1,438

Annexures to the Board's report

72

Sl. Name of the
No. subsidiaryInfosys Integrated Annual Report 2022-23

Sl. Name of the
No. subsidiary

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

32

Infosys
Luxembourg
S.a.r.l

Luxembourg Mar 31,
2023

33

BASE life
Denmark
science A/S (14)NA

1 EUR =
₹89.44

17

(3)

87

73

–

173

8

–

8

100.00Jun 30,2023

Sep 1,2022

1 DKK =
₹12.01

–

25

127

102

–

162

(22)

(5)

(17)

100.0034 Simplus
Australia Pty
Ltd (15)Australia

Jan 31,2023

NA

1 AUD =
₹57.44

18

(32)

48

62

–

142

13

–

13

100.0035

FluidoSweden AB(Extero) (16)SwedenDec 31,2022

NA

1 SEK =
₹7.92

11

3

40

26

–

122

14

3

11

100.0036

Infosys BPO
Americas
LLC. (3)US

Mar 31,2023

NA

1 USD =
₹82.17

130

(93)

57

20

–

119

27

3

24

100.0037

Infy
Consulting
B.V. (4)The
Dec 31,
Netherlands 2022

NA

1 EUR =
₹88.14

1

44

73

28

–

96

9

2

7

100.0038

Infosys(Malaysia)
SDN. BHD.
(formerly
GlobalEnterpriseInternational(Malaysia)
Sdn. Bhd.) (17)

Malaysia

Mar 31,
2023

Dec 14,2021

1 MYR =
₹18.62

29

(26)

68

65

–

92

(31)

–

(31)

100.0039

Infosys
Middle EastFZ LLC (11)Dubai

Dec 31,2022

Jan 01,2018

1 AED =
₹22.53

1

(16)

47

62

–

89

(1)

–

(1)

100.00NA

1 EUR =
₹88.14

8

11

48

29

–

80

16

4

12

75.00

40 HypoCasso
B.V. (5)The
Dec 31,
Netherlands 2022

41

Infosys Fluido UK
U.K., Ltd.
(formerly
known as
Simplus U.K,
Ltd) (16)

Dec 31,2022

NA

1 GBP =
₹99.53

4

(26)

15

37

–

80

(12)

–

(12)

100.0042

Panaya Inc.
(Panaya)Dec 31,2022

Mar 5,
2015

1 USD =
₹82.73

–

386

724

338

–

76

2

4

(2)

100.00US

73

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

43

Infosys
Consulting(Belgium)NV (4)

Belgium

Dec 31,2022

NA

1 EUR =
₹88.14

3

(12)

44

53

–

72

–

–

–

100.0044 Infosys
Consulting
SAS (4)

FranceDec 31,2022

NA

1 EUR =
₹88.14

29

(12)

31

14

–

71

4

–

4

100.0045

Philippines

Jan 31,2023

NA

1 PHP =
₹1.5

1

11

20

8

–

71

5

1

4

100.00

NorwayDec 31,2022

NA

1 NOK =
₹8.38

–

37

57

20

–

61

22

5

17

100.00oddity waves Germany
GmbH (19)

Dec 31,
2022

Apr 20,2022

1 EUR =
₹ 88.14

–

18

36

18

–

61

16

5

11

100.00

Simplus
Philippines,
Inc. (18)46 Fluido
NorwayA/S (16)
47

Infosys Integrated Annual Report 2022-23

48 Infosys Chile
SpA

Chile

Dec 31,2022

NA

1 CLP =
₹0.09

7

18

35

10

–

60

11

3

8

100.0049

FluidoDenmark
A/S (16)

DenmarkDec 31,2022

NA

1 DKK =
₹11.85

3

(1)

23

21

–

59

–

–

–

100.0050

oddity jungle Germany
GmbH (19)

Dec 31,
2022

Apr 20,2022

1 EUR =
₹88.14

–

12

37

25

–

56

(3)

(1)

(2)

100.0051

oddityGmbH (19)Germany

Dec 31,
2022

Apr 20,2022

1 EUR =
₹88.14

–

21

41

20

–

55

2

1

1

100.0052

oddity space
GmbH (19)Germany

Dec 31,
2022

Apr 20,2022

1 EUR =
₹88.14

–

6

27

21

–

52

–

–

–

100.0053

Infosys
Turkey Bilgi
Teknolojileri
LimitedSirketiTurkeyDec 31,2022

NA

1 TRY =
₹4.42

7

(54)

53

100

–

42

(54)

–

(54)

100.0054 Infosys Green India
Forum (20)

Mar 31,
2023

NA

INR

1

293

329

35

31

34

4

–

4

100.0055

BASE life
Switzerland
science AG (21)

Jun 30,2023

Sep 1,
2022

1 CHF=₹89.58

1

15

30

14

–

31

1

–

1

100.0056

Infosys
Consulting
S.R.L. (22)

Dec 31,2022

NA

1 ARS =
₹0.47

10

(32)

53

75

–

29

(36)

(9)

(27)

100.00Argentina

Annexures to the Board's report

74

Sl. Name of the
No. subsidiaryInfosys Integrated Annual Report 2022-23

Sl. Name of the
No. subsidiary

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

57

Infosys
LimitedBulgaria
EOOD

Bulgaria

Dec 31,2022

NA

1 BGN =
₹45.07

2

–

7

5

–

26

1

–

1

100.0058

Kaleidoscope US
Prototyping
LLC(23)

Dec 31,2022

NA

1 USD =
₹82.73

–

19

20

1

–

23

6

–

6

100.0059

GuideVision
Hungary
Magyarország
Kft. (24)

Dec 31,2022

NA

1 HUF =
₹0.22

–

2

5

3

–

20

1

–

1

100.0060 oddity groupservices
GmbH (19)Germany

Dec 31,
2022

Apr 20,2022

1 EUR =
₹88.14

–

1

10

9

–

19

(1)

–

(1)

100.0061

BASE life
scienceGmbH (21)Germany

Jun 30,2023

Sep 1,
2022

1 EUR =
₹89.44

–

(1)

10

11

–

18

(1)

–

(1)

100.0062

oddity code
GmbH (19)Germany

Dec 31,
2022

Apr 20,2022

1 EUR =
₹88.14

–

2

7

5

–

16

–

–

–

100.0063

InfosysAustria
Austria GmbHDec 31,2022

NA

1 EUR =
₹88.14

1

1

27

25

–

15

(2)

(1)

(1)

100.00PolandDec 31,2022

NA

1 PLN =
₹18.87

–

1

4

3

–

14

–

–

–

100.00

Infosys Fluido Ireland
Ireland, Ltd.
(formerly
known as
Simplus
Ireland, Ltd) (25)

Dec 31,2022

NA

1 EUR =
₹88.14

1

1

2

–

–

13

7

–

7

100.00Jun 30,2023

Sep 1,
2022

1 EUR =
₹89.44

–

1

14

13

–

13

1

–

1

100.00Mar 31,2023

NA

1 CAD =
₹60.67

13

(1)

18

6

–

12

(1)

–

(1)

100.0064 GuideVision
Polska SP. Z
O.O. (24)65

66 BASE life
science
S.L. (21)(26)
67

Spain

Infosys Public Canada
Services
CanadaInc. (27)(28)75

Infosys Integrated Annual Report 2022-23

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

68

Infosys
Financial
ServicesGmbH(formerly
known asPanayaGmbH) (29)Germany

Dec 31,2022

NA

1 EUR =
₹88.14

–

(1)

77

78

–

11

–

–

–

100.0069

GuideVision
UK Ltd (24)(30)UK

Dec 31,2022

NA

1 GBP =
₹99.53

–

2

10

8

–

11

–

–

–

100.0070

InfosysBusiness
Solutions
LLC (31)

Qatar

Dec 31,2022

NA

1 QAR =
`22.65

8

4

14

2

–

9

3

–

3

100.0071

FluidoSlovakias.r.o (16)

Slovakia

Dec 31,2022

NA

1 EUR =
₹88.14

1

5

7

1

–

8

1

–

1

100.0072

GuideVision
DeutschlandGmbH (24)Germany

Dec 31,2022

NA

1 EUR =
₹88.14

–

–

3

3

–

8

(4)

–

(4)

100.0073

GuideVision
Suomi Oy (24)FinlandDec 31,2022

NA

1 EUR =
₹88.14

–

2

3

1

–

8

1

–

1

100.0074

oddityLimited(Taipei) (32)

TaiwanDec 31,
2022

Apr 20,2022

1 TWD =
`2.69

–

–

5

5

–

8

1

–

1

100.0075

BASE life
scienceLtd. (21)UK

Jun 30,2023

Sep 1,
2022

1 GBP =
₹101.65

–

1

4

3

–

8

(1)

–

(1)

100.0076

oddity(Shanghai)Co., Ltd. (32)

China

Dec 31,
2022

Apr 20,2022

1 RMB =
₹11.91

1

3

6

2

–

6

–

–

–

100.0077

oddity code
D.O.O (33)

SerbiaDec 31,
2022

Apr 20,2022

1 RSD =
`0.75

–

2

4

2

–

6

1

–

1

100.0078

BASE life
science
S.r.l. (21)Itlay

Jun 30,2023

Sep 1,
2022

1 EUR =
₹89.44

–

(1)

5

6

–

6

–

–

–

100.0079

Infosys South South Africa Dec 31,
Africa (Pty)2022
Ltd (11)NA

1 ZAR =
₹4.87

4

1

9

4

–

5

1

–

1

100.00Annexures to the Board's report

76

Sl. Name of the
No. subsidiaryInfosys Integrated Annual Report 2022-23

Sl. Name of the
No. subsidiary

Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

80 BASE life
science
S.A.S (21)FranceJun 30,2023

Sep 1,
2022

1 EUR =
₹89.44

–

1

8

7

–

5

1

–

1

100.0081

StaterGmbh (5)(34)

Germany

Dec 31,2022

NA

1 EUR =
₹88.14

–

(6)

5

11

–

2

(4)

–

(4)

75.00

82

Stater XXL
B.V. (5)The
Dec 31,
Netherlands 2022

NA

1 EUR =
₹88.14

–

–

–

–

–

1

1

–

1

75.00

83

Infosys Nova US
Holdings LLC.
(Infosys Nova)

Dec 31,2022

NA

1 USD =
₹82.732,766

8 2,791

17

–

–

23

–

23

100.00Dec 31,
2022

Oct 22,
2012

1 CHF =
₹89.6

162

347

614

105

–

–

45

–

45

100.00

Infosys Arabia Saudi Arabia Dec 31,
Limited (30)(35)
2022

NA

1 SAR =
₹22

3

1

4

–

–

–

–

–

–

70.00

86 StaterThe
Dec 31,
Participations Netherlands 2022
B.V. (5)NA

1 EUR =
₹88.14

–

(260)

89

349

–

–

–

–

–

75.00

87

84 Infosys
Consulting
Holding
AG (Infosys
Lodestone)
85

Switzerland

InfosysGermany
Holding
Gmbh

Germany

Dec 31,2022

NA

1 EUR =
₹88.14

2

–

2

–

–

–

–

–

–

100.0088 Infosys
GermanyGmbH(formerly
Kristall247. GmbH(“Kristall”)) (36)Germany

Dec 31,
2022

Mar 22,2022

1 EUR =
₹88.14

–

(48)

361

409

–

–

(29)

–

(29)

100.0089

UK

Mar 31,2023

NA

1 GBP =
₹101.65

–

1

1

–

–

–

–

–

–

100.00India

Mar 31,
2023

Jun 2,
2015

INR

–

81

93

12

81

–

7

2

5

100.00Brilliant
BasicsLimited (30)(37)90 Skava
Systems
PrivateLimited(SkavaSystems) (30)77Country

Financial Date of
Exchange Share Reserves Total Total liabilities Investments
Turnover(1)Profit / Provision
Profit /% ofperiodacquisition rate/
capitaland assets(excluding(Includes(Loss)for (Loss) after shareholding
ended
Reportingsurplusshare capitalinterbefore taxation (1) taxation (1)currency
and reservescompany taxation (1)and surplus)transactions)

91

Brilliant
BasicsHoldings
Limited(Brilliant
Basics) (30)UK

Mar 31,2023

Sep 8,
2017

1 GBP =
₹101.65

–

63

63

–

–

–

–

–

–

100.0092

InfosysAmericasInc., (Infosys
Americas) (30)US

Mar 31,2023

NA

1 USD =
₹82.17

1

–

1

–

–

–

–

–

–

100.0093

BASE lifeUSscience Inc. (21)

Jun 30,2023

Sep 1,
2022

1 USD =
₹82.17

–

–

–

–

–

–

–

–

–

100.0094 Innovisor
Inc. (21)US

Jun 30,2023

Sep 1,
2022

1 USD =
₹82.17

–

–

–

–

–

–

–

–

–

100.0095

UK

Mar 31,2023

NA

1 GBP =
₹101.65

1

–

1

–

–

–

–

–

–

100.0096 Panaya
GermanyGmbH (10)(38)

Germany

Dec 31,2022

NA

1 EUR =
₹88.14

–

–

–

–

–

–

–

–

–

100.0097

Simplus ANZ
Pty Ltd.(18)

Australia

Jan 31,2023

NA

1 AUD =
₹57.44

–

–

–

–

–

–

–

–

–

100.0098 Infosys
Norway (11)(39)

NorwayMar 31,2023

NA

1 NOK =
₹7.88

–

–

–

–

–

–

–

–

–

100.00

Infosys BPM
UK Limited (3)(1)

Converted at monthly average exchange rates(2)

On March 17, 2022, Infosys Limited acquired non-controlling interest of 0.01% of the votinginterests in Infosys BPM Limited(14)

On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (a whollyowned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S.

(15)

Wholly-owned subsidiary of Simplus ANZ Pty Ltd

Infosys Integrated Annual Report 2022-23(3)

Wholly-owned subsidiary of Infosys BPM Limited(16)

Wholly-owned subsidiary of Fluido Oy(4)

Wholly-owned subsidiary of Infosys Consulting Holding AG

(17)

(5)

Wholly-owned subsidiary of Stater N.V.

(6)

Effective December 31, 2021 WongDoody Holding Company Inc. and WDW Communications, Inc.
merged with WongDoody, Inc.

On December 14, 2021, Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.), a whollyowned subsidiary of Infosys Limited acquired 100% of voting interests in Infosys (Malaysia) SDN.
BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.)(18)

Wholly-owned subsidiary of Outbox Systems Inc.

(19)

Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.)On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (a wholly-owned
subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.)) acquired 100% of
voting interests in oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity groupservices GmbH, oddity code GmbH and oddity GmbH.

(20)

(10)

Wholly-owned subsidiary of Panaya Inc

Incorporated on August 31, 2021

(21)

(11)

Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.)

Wholly-owned subsidiary of BASE life science A/S(22)

Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiary of Infosys Consulting
Holding AG) became the majority-owned and controlled subsidiary of Infosys Limited with effectfrom April 1, 2022

(7)

Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021

(8)

Wholly-owned subsidiary of Infosys Nova Holdings LLC

(9)

(12)

Majority-owned and controlled subsidiary of Stater Participations B.V(13)

Wholly-owned subsidiary of Infy Consulting Company Limited

Annexures to the Board's report78

Sl. Name of the
No. subsidiaryInfosys Integrated Annual Report 2022-23(23)

Wholly-owned subsidiary of Kaleidoscope Animations, Inc.

(32)

Wholly-owned subsidiary of oddity GmbH

(24)

Wholly-owned subsidiary of GuideVision s.r.o.

(33)

Wholly-owned subsidiary of oddity code GmbH(25)

Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd)

(34)

Incorporated on August 4, 2021

(26)

Incorporated on September 6, 2022

(35)

Majority-owned and controlled subsidiary of Infosys Limited(27)

Incorporated on July 8, 2022

(36)

(28)

Wholly-owned subsidiary of Infosys Public Services, Inc.

(29)

Infosys Financial Services GmbH. (formerly Panaya GmbH) became a wholly-owned subsidiary of
Infosys Singapore Pte. Ltd (formerly Infosys Consulting Pte. Ltd.) with effect from February 23, 2023.

On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.), a whollyowned subsidiary of Infosys Limited acquired 100% of voting interests in Infosys Germany
GmbH (formerly Kristall 247. GmbH (“Kristall”)).

(37)

Wholly-owned subsidiary of Brilliant Basics Holding Limited.

(30)

Under liquidation(31)

Incorporated on February 20, 2022

(38)

Incorporated effective December 15, 2022

(39)

Incorporated effective February 7, 2023.

Notes :
1. Investments exclude investments in subsidiaries
2. Proposed dividend from any of the subsidiaries is nil except for Infosys BPM Limited and EdgeVerve which proposed a final dividend of `2,34,000 per equity share (`10,000 par value) and `3.05 per equity
share (`10 par value), respectively, subject to approval of shareholders in ensuing Annual General Meeting of the Company.
3. Reserve and surplus includes Other comprehensive income and securities premium.

for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Bengaluru
April 13, 2023

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary79Annexure 2 – Particulars of contracts / arrangements made with related parties[Pursuant to Clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013,
and Rule 8(2) of the Companies (Accounts) Rules, 2014 – AOC-2]
This Form pertains to the disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred
to in sub-section (1) of Section 188 of the Companies Act, 2013, including certain arm’s length transactions under third proviso thereto.

Details of contracts or arrangements or transactions not at arm’s length basis
There were no contracts or arrangements or transactions entered into during the year ended March 31, 2023, which were not
at arm’s length basis.

Details of material contracts or arrangement or transactions at arm’s length basis
There were no material contracts or arrangements or transactions entered into during the year ended March 31, 2023.

for and on behalf of the Board of Directors

Bengaluru
April 13, 2023

80

Sd/-

Sd/-

D. Sundaram

Salil Parekh

Lead Independent Director

Chief Executive Officer
and Managing Director

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Annexure 3 – Particulars of employees
We are a leading provider of consulting, technology, outsourcing and next-generation digital services. We enable clients across 56 countries to outperform their competitionand stay ahead on the innovation curve. The remuneration and perquisites provided to our employees, including that of the Management, are on par with industry
benchmarks. The Nomination and Remuneration Committee continuously reviews the compensation of our CEO and other Key Managerial Personnel (KMP) to align both theshort-term and long-term business objectives of the Company and to link compensation with the achievement of goals.
The details of remuneration to directors, KMP and other employees are in compliance with Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014. In accordance with the requirements, tables 3(a) and 3(b) include the perquisite value of stock incentives at the time of their exercise anddo not include the value of the stock incentives at the time of grant.
The change in remuneration in fiscal 2023 as compared to fiscal 2022 is primarily on account of change in perquisite value of stock incentives granted in previous years
and exercised during the year, and higher stock incentives exercised in certain cases and change in cash compensation. The change in perquisite value of stock incentives
exercised during the year also includes the impact of change in share price during the period of exercise.

Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
3(a) Remuneration details of directors and KMP
Name

Director
Title
Identification
Number(DIN)

Nandan M. Nilekani (2)00041245

Non-executive and Nonindependent Chairman

–

–

–

–

–

Kiran MazumdarShaw (3)00347229

Lead Independent Director

NA

NA

NA

NA

–

D. Sundaram (4)00016304

Lead Independent Director

21

30

21

30

–

Michael Gibbs

08177291

Independent Director

41

29

41

29

–

Uri Levine (5)08733837

Independent Director

47

26

47

26

–

% increase of
Ratio ofremuneration remunerationin fiscal 2023
to MRE (1)as compared tofiscal 2022 (1)% increase of remuneration in
Ratio of remuneration
fiscal 2023 as compared to fiscal
to MRE (excluding
2022 (excluding perquisite value perquisite value of stockof stock incentives exercised
incentives exercised
during the year)
during the year)

No. ofRSUsgrantedin fiscal
2023

Bobby Parikh

00019437

Independent Director

22

22

22

22

–

Chitra Nayak

09101763

Independent Director

48

28

48

28

–

Govind Iyer

(6)00169343

Independent Director

NA

NA

NA

NA

–

Salil Parekh(7)01876159

Chief Executive Officer
and Managing Director

(21)

627

38

287

3,53,953

Nilanjan Roy (8)NA

Chief Financial Officer

28

118

18

55

45,829A.G.S. Manikantha (9)NACompany Secretary

1

17

15

12

2,750

MRE – Median Remuneration of Employees
Notes:The remuneration details in the above table pertain to directors and KMP as required under the Companies Act, 2013. The table above additionally includes the % increase in remuneration excluding
perquisite value of stock incentives exercised during the year.

81The % increase of remuneration is provided only for those directors and KMP who have drawn remuneration from the Company for full fiscal 2023 and full fiscal 2022. The ratio of remuneration to MRE 		
is provided only for those directors and KMP who have drawn remuneration from the Company for the full fiscal 2023.
(1)

Remuneration to KMP includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the
Income-tax Act, 1961. Accordingly, the value of stock incentives granted during the period is not included. The number of stock incentives granted in fiscal 2023 is mentioned separately in the abovetable. Independent directors are not entitled to any stock incentives.

(2)

Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.

(3)

Kiran Mazumdar-Shaw retired as Lead Independent Director effective March 22, 2023.

(4)

D. Sundaram was appointed as Lead Independent Director effective March 23, 2023.

(5)

Uri Levine to retire as Independent Director effective April 19, 2023.

(6)

Govind Iyer was appointed as Independent Director effective January 12, 2023.

(7)a) Remuneration includes ₹30.60 crore pertaining to exercise of 1,24,783 Restricted Stock Units (RSUs) under the 2015 Plan and 73,962 RSUs under the 2019 Plan during fiscal 2023.
b) On the recommendation of the Nomination and Remuneration Committee, in accordance with the terms of his previous employment agreement, the Board approvedi) the grant of 84,361 performance-based RSUs under the 2015 Plan effective May 2, 2022ii) the grant of 64,893 performance-based RSUs for fiscal 2023 under the 2019 Plan effective May 2, 2022. These will vest based on the Company’s achievement of certain performance criteria as laidout in the 2019 Plan.

		

These RSUs will vest in line with the previous employment agreement.

c)	On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his revised employment agreement effective
July 1, 2022, the Board approvedi) the grant of 1,40,228 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain performance targets.
ii)	the grant of 12,894 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain environment, social and governance milestones as
determined by the Board.
iii)	the grant of 32,236 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of the Company's performance on cumulative relative TSR over
the years and as determined by the Board.
iv) the grant of 19,341 annual time-based RSUs for fiscal 2023 under the 2015 Plan effective February 1, 2023
		
(8)

These RSUs will vest in line with the revised employment agreement.

a) Remuneration includes ₹5.67 crore on account of exercise of 26,701 RSUs under the 2015 Plan and 10,667 RSUs under the 2019 Plan during fiscal 2023.
b) On the recommendation of the Nomination and Remuneration Committee, the Board approvedi) the grant of 5,616 annual performance-based RSUs under the 2015 Plan effective May 2, 2022ii) the grant of 5,931 annual performance-based RSUs under the 2015 Plan effective February 1, 2023iii) the grant of 11,282 annual time-based RSUs under the 2015 Plan effective February 1, 2023
iv) t he grant of 13,000 performance-based RSUs under the 2019 Plan effective June 1, 2022. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out inthe 2019 Plan.

Infosys Integrated Annual Report 2022-23v) the grant of 10,000 performance-based RSUs under the 2019 Plan effective March 31, 2023. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out inthe 2019 Plan.
		(9)These RSUs will vest in line with the RSU award agreement.

a) Remuneration includes ₹0.46 crore on account of exercise of 1,000 RSUs under the 2015 Plan and 2,000 RSUs under the 2019 Plan during fiscal 2023.
b)	On the recommendation of the Nomination and Remuneration Committee, the Board approved the grant of 1,000 and 1,750 performance-based RSUs under the 2019 Plan effective June 1, 2022 andMarch 31, 2023, respectively. These RSUs will vest based on the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.

The MRE was ₹9,00,012 and ₹8,14,332 in fiscal 2023 and fiscal 2022, respectively. The increase in MRE in fiscal 2023, as compared to fiscal 2022, is 10.52%.
The average annual increase in the salaries of employees was 9.9% in India, after accounting for promotions and other event-based compensation revisions. Employees
outside India received a wage increase in line with the market trends in the respective countries.

Annexures to the Board's report

82

The details in the above table are on accrual basis.

Infosys Integrated Annual Report 2022-23

3(b) Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Top 10 employees in terms of remuneration drawn during the year
Employee
name

Designation

Educational Age Experience Date ofqualification(in years) joining

Location

Mohit Joshi

President

BA(H), MBA48

26 Dec 7, 2000

UK

57,32,10,914 (3)31,000 ABN AMRO Bank, Manager

Salil Parekh

CEO & MD

B.Tech, ME

58

35 Jan 2, 2018

India

56,44,69,740

3,53,953 Capgemini, Director General

Martha G. King

Chief Client Officer

BS59

38 Oct 12, 2020 US

Karmesh Gul
Vaswani

Segment Head – CPG,
Logistics and RetailBE

51

30 Mar 3, 2003

UK

22,90,22,699 (5)60,350 Accenture, Senior Manager

Inderpreet
SawhneyGroup General Counsel and BA LLB, LLM
Chief Compliance Officer

58

32 Jul 3, 2017

US

21,92,99,018 (6)70,030 Wipro, Senior Vice President
and General Counsel

Jasmeet Singh

Segment Head,
Manufacturing

B.Tech, MBA

51

27 May 31, 2011 US

14,44,49,984 (7)48,370 HCL America, Vice President

Anand
Swaminathan

Segment Head –Communication, Mediaand Technology

ACS, AICWA,
MS

51

31 Apr 26, 1999 US

13,13,26,079 (8)48,370 Rane Brake Linings Limited,Manager Information
Technology

Krishnamurthy
ShankarGroup Head – Human
Resources and Infosys
Leadership InstituteBA, PGD

60

39 Oct 26, 2015 India

13,02,31,856 (9)30,990 Philips India, Head of HR

Frank
Satterthwaite

Senior Vice President –Delivery, FSHIL

BS, MBA

60

33 Oct 12, 2020 US

10,63,28,234 (10)31,869 Vanguard, Principal

Nilanjan Roy

Chief Financial Officer

B.Com (H),CA

56

32 Mar 1, 2019

10,61,66,383 (11)45,829 Bharti Airtel Limited, Global
Chief Financial Officer

India

Remuneration in No. of RSUs granted Previous employment andfiscal 2023 (In ₹) (1)in fiscal 2023 (2) designation(4)

23,28,65,457

53,986 Vanguard, Managing
Director

Notes: The details in the above table are on accrual basis for better comparability with the KMP remuneration disclosures included in other sections of this Annual Report.
The aforementioned employees have / had permanent employment contracts with the Company.
Employees mentioned above are neither relatives of any directors of the Company, nor hold 2% or more of the paid-up equity share capital of the Company as per Clause (iii) of sub-rule (2) of Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
For employees based overseas, average exchange rates have been used for conversion to INR.
(1)

Includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period, determined in accordance with the provisions of the Income-tax Act, 1961 or
relevant overseas tax regulations as applicable. Accordingly, the value of stock incentives granted during the period is not included. Additionally, the number of stock incentives granted in fiscal 2023 isincluded in the table above.

(2)

Includes equity-settled and cash-settled RSUs issued at par under the 2015 and 2019 Plans.

(3)a) Remuneration includes ₹38.95 crore on account of exercise of 92,475 RSUs, 2,25,500 ESOPs under the 2015 Plan and 27,333 under the 2019 Plan during fiscal 2023.

(4)

Remuneration includes ₹30.60 crore on account of exercise of 1,24,783 RSUs under the 2015 Plan and 73,962 under the 2019 Plan during fiscal 2023.

(5)

Remuneration includes ₹12.87 crore on account of exercise of 28,275 RSUs, 62,400 ESOPs under the 2015 Plan and 14,333 RSUs under the 2019 Plan during fiscal 2023.

b) Mohit Joshi resigned as President from the Company. He is on leave from March 11, 2023 and will stay on leave till the last date with the Company, that is, June 9, 2023.

83

(6)

Remuneration includes ₹12.46 crore on account of exercise of 28,975 RSUs, 55,566 ESOPs under the 2015 Plan and 14,333 RSUs under the 2019 Plan during fiscal 2023.

(7)

Remuneration includes ₹7.96 crore on account of exercise of 17,125 RSUs, 33,700 ESOPs under the 2015 Plan and 12,000 RSUs under the 2019 Plan during fiscal 2023.

(8)

Remuneration includes ₹6.72 crore on account of exercise of 4,600 RSUs, 50,200 ESOPs under the 2015 Plan and 4,666 RSUs under the 2019 Plan during fiscal 2023.

(9)a) Remuneration includes ₹8.09 crore on account of exercise of 22,425 RSUs, 28,500 ESOPs under the 2015 Plan and 10,000 RSUs under the 2019 Plan during fiscal 2023.

(10)

Remuneration includes ₹1.37 crore on account of exercise of 6,872 RSUs under the 2015 Plan and 2,352 RSUs under the 2019 Plan during fiscal 2023.

(11)

Remuneration includes ₹5.67 crore on account of exercise of 26,701 RSUs under the 2015 Plan and 10,667 RSUs under the 2019 Plan during fiscal 2023.

b) Krishnamurthy Shankar retired as Group Head – Human Resources and Infosys Leadership Institute effective March 21, 2023.

Annexure 4: Independent Auditor’s certificate on corporate governance

REF:IL/2023-24/001
INDEPENDENT AUDITOR’S CERTIFICATE
TO THE MEMBERS OF INFOSYS LIMITEDCERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement letter reference number IL/2022-23/17 dated July 15, 2022
and addendum dated March 30, 2023.
2. We, Deloitte Haskins & Sells LLP, Chartered Accountants, the Statutory Auditors of Infosys Limited (the “Company”), have examinedthe compliance of conditions of Corporate Governance by the Company, for the year ended on March 31, 2023, as stipulated inregulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI (Listing Obligations andDisclosure Requirements) Regulations, 2015 (the “Listing Regulations”).

Managements’ Responsibility
3. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes thedesign, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the
Corporate Governance stipulated in Listing Regulations.

Auditor’s Responsibility
4. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
5. We have examined the books of account and other relevant records and documents maintained by the Company for the purposes ofproviding reasonable assurance on the compliance with Corporate Governance requirements by the Company.
6. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certificationof Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the Standards on Auditing specified
under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per the GuidanceNote on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the ethical requirements of
the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion
8. Based on our examination of the relevant records and according to the information and explanations provided to us and therepresentations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the Listing
Regulations during the year ended March 31, 2023.
9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness withwhich the Management has conducted the affairs of the Company.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sd/Sanjiv V. Pilgaonkar

Place: Bengaluru
Date: April 13, 2023
84

Partner(Membership No. 039826)
UDIN: 23039826BGXRYS6721
Infosys Integrated Annual Report 2022-23

Annexure 5 – Secretarial audit report for the financial year ended March 31, 2023
Form No. MR-3
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Infosys Limited
Electronics City, Hosur Road
Bengaluru-560100, Karnataka, India
We have conducted the secretarial audit of the compliance with applicable statutory provisions and the adherence to good corporate
practices by Infosys Limited (“the Company”). The secretarial audit was conducted in a manner that provided us a reasonable basis forevaluating the corporate conduct / statutory compliances and expressing our opinion thereon.

Auditor’s responsibility
Our responsibility is to express an opinion on the compliance of the applicable laws and maintenance of records based on audit. We
have conducted the audit in accordance with the applicable Auditing Standards issued by The Institute of Company Secretaries of India.
The Auditing Standards require that the Auditor shall comply with statutory and regulatory requirements and plan and perform the audit
to obtain reasonable assurance about compliance with applicable laws and maintenance of records.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by theCompany and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of
secretarial audit, we hereby report that in our opinion, the Company has, during the audit period from April 01, 2022 to March 31, 2023(“the audit period”) complied with the statutory provisions listed hereunder and also that the Company has proper Board processes andcompliance mechanisms in place to the extent and in the manner reporting made hereinafter:(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder;(ii) The Securities Contracts (Regulation) Act, 1956 (SCRA) and the rules made thereunder;(iii) The Depositories Act, 1996 and the regulations and bye-laws framed thereunder;(iv) The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment and Overseas Direct Investment (External Commercial Borrowings are not applicable to the Company
during the Audit Period);(v) The following regulations and guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (“the SEBI Act”): (a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (not applicable to theCompany during the audit period)(d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021; (not applicable to
the Company during the audit period)(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding theCompanies Act and dealing with client;(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (not applicable to the Company during
the audit period) and(h) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018. (“the Buyback Regulations”)

Infosys Integrated Annual Report 2022-23

85

Annexures to the Board's report
We have also examined compliance with the applicable clauses of the following:(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments
made thereunder (“the Listing Regulations”).
We further report that, with regard to the compliance system prevailing in the Company and on the examination of the relevant
documents and records in pursuance thereof, on test-check basis, the Company has generally complied with the following laws
applicable specifically to the Company:••

The Special Economic Zones Act, 2005 and the rules made thereunder; andSoftware Technology Parks of India Rules and Regulations

During the audit period, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines and Standards
etc. made thereunder.

We further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors, andIndependent Directors. The changes in the composition of the Board of Directors that took place during the audit period were carriedout in compliance with the provisions of the Act and Listing Regulations.
Adequate notice was given to all directors to schedule Board meetings, agenda and detailed notes on agenda were sent at least sevendays in advance (a few meetings were convened at shorter notice for which necessary approvals were obtained as per applicableprovisions). A system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting andfor meaningful participation at the meeting.
All decisions at Board meetings and Committee meetings are carried out unanimously as recorded in the minutes of the meetings of theBoard of Directors or Committees of the Board, as the case may be.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of theCompany to monitor and ensure compliance with applicable laws, rules, regulations, and guidelines.
We further report that during the audit period,••

The Company bought back 6,04,26,348 fully paid-up equity shares of face value of `5/- at the average price of `1539.06/-(rounded
off to two decimals) each through the stock exchange mechanism as prescribed under the Buyback Regulations. The Company has
extinguished all the Equity Shares purchased under the Buyback.
The Company has issued and allotted 22,47,751 Equity Shares of face value of `5/- each pursuant to 2015 Stock Incentive
Compensation Plan and the Infosys Expanded Stock Ownership Program 2019.

For Makarand M. Joshi & Co.
Company Secretaries

Sd/Makarand M. Joshi
Partner

Place: Mumbai
Date: April 13, 2023

FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533E000088990

This report is to be read with Annexure A which forms an integral part of this report.

86

Infosys Integrated Annual Report 2022-23

Annexure A
To,
The Members,
Infosys Limited
Electronics City, Hosur Road
Bengaluru-560100, Karnataka, India
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the Management of the Company. Our responsibility is to express an opinion
on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of thecontents of the secretarial records. The verification was done on test basis to ensure that accurate facts are reflected in secretarialrecords. We believe that the processes and practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations andhappening of events etc.
5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility ofmanagement. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance of the future viability of the Company nor of the efficacy or effectiveness withwhich the Management has conducted the affairs of the Company.

For Makarand M. Joshi & Co.
Company Secretaries

Sd/Makarand M. Joshi
Partner

Place: Mumbai
Date: April 13, 2023

Infosys Integrated Annual Report 2022-23

FCS: 5533
CP: 3662
PR: 640/2019
UDIN: F005533E000088990

87Annexure 6 – Annual report on CSR activities[Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.]

1. Brief outline on CSR Policy of the Company:
Over the years, we have been focusing on sustainable business practices encompassing economic, environmental and social imperatives
that not only cover business, but also the communities around us. Our Corporate Social Responsibility (CSR) encompasses holistic
community development and institution building, while shaping and sharing solutions that serve the development of businesses andcommunities. Our CSR Policy aims to provide a dedicated approach to community development in the areas of education, healthcare,women empowerment, environmental sustainability, rehabilitating the destitute, preserving Indian art and culture, rural development
and disaster relief. We contribute to serve the development of people by shaping their future with meaningful opportunities, thereby
accelerating the sustainable development of society while preserving the environment, and making our planet a better place today andfor future generations.
Objectives
Our broad objectives, as stated in our CSR Policy, include:••

Making a positive impact on society through economic development with minimal resource footprint, andTaking responsibility for the actions of the Company while also encouraging a positive impact through supporting causes concerning
the environment, communities and our stakeholders.

Focus areas
•
•
•
•
•
•

Promoting education and enhancing vocational skills
Promoting healthcare including preventive healthcare
Promoting gender equality by empowering women
Environmental sustainability and ecological balance
Destitute care and rehabilitation
Protection of national heritage, restoration of historical sites and promotion of art and culture

CSR activities
Infosys Limited (“Infosys” or “the Company”) has been an early adopter of CSR initiatives. Infosys undertakes CSR initiatives both directly
as well as through Infosys Foundation (“the Foundation”). The Foundation was established in 1996 with a vision to boosting our CSR
initiatives. This was long before the Companies Act, 2013 mandated CSR activities to be undertaken by the Company.
Key highlights of the activities during the year are listed below:•

Support rapid operationalization of the Mother and Child Block at the All-India Institute of Medical Sciences (AIIMS) throughprovision of medical equipment;
In partnership with Ramakrishna Mission, providing schools across the country with STEM labs, online courses, and scholarships tomeritorious students;
Installed household biogas units and high-efficiency biomass cookstoves for smoke-free kitchens, support organic farming, longterm socio-economic and health benefits for the communities;
Infosys Springboard, a digital literacy program powered by tech platform that enables students to acquire core digital skills, life skills
and become lifelong learners;
Partner with the Rehabilitation and Welfare section of the Indian Army to provide educational grants to widows and children of army
personnel who lost their lives while in service;
Providing job-readiness skills training and placement to unemployed youth in the UNXT program with Unnati.

•
•
•
•
•

2. Composition of CSR Committee:
Sl.
No.

Name of the director

Designation / Nature of
directorship

1

Govind Iyer (1)Chairperson

2

Chitra Nayak

Member3

Uri Levine

4

Kiran Mazumdar-Shaw(2)

Number of meetings of CSR
Committee held during the year

Number of meetings of CSR
Committee attended during the year

NA

NA

4

4

Member4

4Chairperson

4

4

(1)

Appointed as a member of the Committee effective January 13, 2023, and the Chairperson effective March 23, 2023

(2)

Ceased to be a Chairperson and member of the Committee due to retirement as Independent Director effective March 22, 2023

88

Infosys Integrated Annual Report 2022-23

3. Web link(s) for composition of CSR committee, CSR policy and CSR projects approved by the Board.
••••

The composition of the CSR Committee is available on our website, at
https://www.infosys.com/investors/corporate-governance/documents/committee-composition.pdf
The Committee, with the approval of the Board, has adopted the CSR Policy as required under Section 135 of the Companies Act, at
https://www.infosys.com/investors/corporate-governance/documents/corporate-social-responsibility-policy.pdf
The Company has also adopted the CSR Committee Charter, which is available on our website, at
https://www.infosys.com/investors/corporate-governance/documents/corporate-social-responsibility-committee-charter.pdf
The Board, based on the recommendation of the CSR Committee, at its meeting held on April 11, 2023, has approved the annual
action plan / projects for fiscal 2024, the details of which are available on our website, at
https://www.infosys.com/investors/reports-filings/documents/annual-action-plan-fy24.pdf

4. Executive summary and web link(s) of Impact Assessment reports
Overview:
The Company fulfils its CSR ambitions and initiatives, both through its internal CSR volunteers & groups and through the Infosys
Foundation – a not-for-profit entity.
Given the scale and impact of the CSR projects, a robust methodology for documenting the objectives and corresponding measurement
criteria has been identified and implemented. This document includes:
Key objectives:
•
•
•
•
•

Obtain insights into projects to determine the overall effectiveness and impact;
Use measurable indicators to gauge progress of grantee organizations in meeting their intended milestones and long-term goals;
Provide frameworks, metrics and tools for ongoing evaluation, monitoring, and design;
Provide recommendations for decision-making for grants; andServe as a guidepost for future projects.

Methodology:
Results will be measured through a process-outcome evaluation focused on generating appropriate evidence through four key channels:
1. Key informant interviews:
These are in-depth interviews with individuals who have first-hand knowledge about the projects, the underlying need, the people/
community served by the project, and the intended use of the grant. These interviews are conducted in two rounds – prior to the actualsite visit and then as a summative exercise to triangulate the nature of the findings.
2. Site visits:
These are in-person visits to the project or program sites and the surrounding communities to gather information based on a checklist of
program milestones. These visits and discussions facilitate the research team to come up with observations, and or draw conclusions.
3. Secondary data analysis:
This is a desk-based analysis of data from grantee organizations on the usage of grant, timelines, and monitoring data using
management information systems (MIS), photographs, press releases, among others.
4. End user surveys:
These are face-to-face, web-based, or telephone-based interactions with end users or beneficiaries of projects.
The data thus gathered from primary and secondary sources is analyzed and triangulated to present a comprehensive assessment ofproject outcomes and implementation processes.
The executive summary includes details of 16 CSR projects considered for impact assessment, conducted by LEAD @ Krea University (1).
(1)

LEAD at Krea University (Leveraging Evidence for Access and Development) is research centre that is part of IFMR (The Institute for Financial Management andResearch) Society.

Infosys Integrated Annual Report 2022-23

89

Annexures to the Board's report
Executive summary of assessed grants:
Projects undertaken for impact assessment in the current year cover the broad areas of education, healthcare, destitute care, ruraldevelopment, and environmental sustainability as described below. These projects align with the ESG framework and support 10of the UN SDG goals.

A. EDUCATION••

Focus on science and technology
Centre of Excellence to recognize, encourage and foster world-class contributions to science and research
Sl. No. Beneficiary name

Project description

1.

Construction of a three-story 37,670 sq. ft. Centre of Excellence building on-campus,
with spaces to host public forums, seminars and prize ceremonies.

Infosys Science Foundation (ISF), Karnataka

B. HEALTHCARE•

Enhancing medical infrastructure
Sl. No. Beneficiary name

Project description

1.

Construction of a four-story outpatient block within the hospital premises to addressincreased patient load and acute shortage of space, and along with provision of
medical equipment to provide affordable, high quality critical cardiac care facilities.

Sri Jayadeva Institute of Cardiovascular
Sciences & Research, Karnataka

The block has a built-up area of over 1,70,000 sq. ft. and a capacity of 350 beds (100
ICCU beds and 250 general ward beds).
2.

Kidwai Memorial Institute of Oncology,
Karnataka

Construction of a five-story outpatient block within the hospital premises to addressincreased patient load and consolidate the eight outpatient departments spread
across various buildings on campus.
The building is approximately 75,000 sq. ft. and serves an estimated 2,500 cancer
patients daily.

C. DESTITUTE CARE
•
•
•
•
•

Support for people affected by the COVID-19 pandemic
Flood relief
Infrastructure projects to address the needs of patients and their families
Short-stay facilities for ex-servicemen and war widows
Protection of wildlife and forest reserves

1. Relief efforts
Sl. No. Beneficiary name

Project description

1.

Navy Welfare and Wellness Association(NWWA), Kerala
Ramakrishna Kutir, Uttarakhand
Seva Bharathi, Kerala
Sri Ramakrishna Sevashrama,
Andhra Pradesh•

Nirmaan, Telangana
Ullal Municipal Corporation,
Karnataka

COVID-19 pandemic relief efforts:• Infrastructure capacity building of a public hospital and an electric crematorium.

•
•
•
•

2.

90

•
•

•
•

Implementation of flood relief efforts including immediate disaster relief to 6,975
households (Andhra Pradesh: 6,450 and Kerala: 525).
Rehabilitation, infrastructure repair and reconstruction of 38 households and 2
care homes in Kerala and Uttarakhand and 126 schools in Andhra Pradesh.
Distribution of stationery to 5,276 students in Andhra Pradesh.

– A 25-bed pediatric intensive care unit was added to the existing hospitalin Hyderabad.
– The electric crematorium in Mangaluru is a cost-effective, time-efficient,and environment-friendly facility.

Infosys Integrated Annual Report 2022-23

2. Infrastructure projects
Sl.
No.

Beneficiary name

Project description

1.

Tata Memorial Centre, Maharashtra

Construction of a 12-story stay facility for patients and their caregivers on the new
ACTREC campus. It has an area of 2,30,850 sq. ft. and is utilized by an estimated 300
patients each month.

2.

National Cancer Institute, Haryana

Construction of a long-term ten-level stay facility for patients and their caregivers
to access sustained medical care at AIIMS Jhajjar, a campus of AIIMS New Delhi.
The building has a total area of 2,71,250 sq. ft., with an estimated capacity toaccommodate 806 beds.

3.

Sri Venkateswara Zoological Park, Andhra
PradeshConstruction of a protective wall for defense against trespassers, poachers, thespread of forest fires, smugglers and other external threats. The wall is eight
kilometers long, 2.4 meters high, and has a 900 mm high barbed wire fencing over
the wall.

4.

Sri Chamarajendra Zoological Gardens,
Karnataka

Construction of a 25,000 sq. ft. animal enclosure to house the members of anendangered species.

5.

Rajya Sainik Sadan, Odisha

Construction of a short-stay rest house for war widows, disabled soldiers, exservicemen, and their families. It is a four-storey building with a built-up area ofapproximately 11,800 sq. ft.

D. RURAL DEVELOPMENT
The project serves the long-term goal of helping girls from rural backgrounds achieve high standards in education.
Sl.
No.

Beneficiary name

Project description

1.

Ramakrishna Mission, Karnataka

Construction of a two-floor academic block at Sri Sarada Devi Vidya Kendra Schoolfor girls to continue their education. The block consists of six classrooms, four
laboratories, two washrooms, an amphitheater, a library, a staff room, an indoor
sports hall, a cultural center and an underground water reservoir.

E. SUSTAINABILITY
The Foundation undertook a project of rejuvenating a water body of historical importance.
Sl.
No.

Beneficiary name

Project description

1.

General Public; Department of Archeology,
Government of Karnataka

Rejuvenation of two water bodies, renovation of surrounding heritage structures,construction of compound walls around the site, and implementation of a rainwater
harvesting system in Melukote. This will benefit about 90 lakh visitors in 10 years.

Detailed impact assessment reports can be accessed athttps://www.infosys.com/investors/reports-filings/documents/csr-impact-assessment-reports2022-23.pdf.

5. (a) Average net profit of the company as per sub-section (5) of Section 135: ₹21,842.00 crore(b) Two percent of average net profit of the Company as per sub-section (5) of Section 135: ₹436.84 crore(c) Surplus arising out of the CSR projects or programs or activities of the previous financial years: Nil(d) Amount required to be set-off for the financial year, if any: Nil(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: ₹436.84 crore

6. (a) Amount spent on CSR projects (both ongoing project and other than ongoing project): ₹390.17 crore(b) Amount spent in administrative overheads: ₹0.85 crore(c) Amount spent on impact assessment, if applicable: ₹0.49 crore(d) Total amount spent for the financial year [(a)+(b)+(c)]: ₹391.51 crore

Infosys Integrated Annual Report 2022-23

91

Annexures to the Board's report(e) CSR amount spent or unspent for the financial year:
Total amount spent
for the financial year
(In ₹ crore)

Amount unspent (In ₹ crore)
Total amount transferred to unspent CSR
account as per subsection (6) of Section 135

Amount transferred to any fund specified under Schedule
VII as per second proviso to sub-section (5) of Section 135

Amount (In ₹ crore)

Date of transfer

Name of the fundAmountDate of transfer

45.33

Refer to Note

NA

NA

NA

391.51

Note: The unspent amount will be transferred to unspent CSR account within 30 days from the end of the financial year, in accordance with the Companies Act,
2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended (“CSR Rules”).

(f) Excess amount for set-off, if any:
Sl.
No.

Particular

Amount(In ₹ crore)(i)

Two percent of average net profit of the company as per sub-section (5) of Section 135

436.84(ii)

Total amount spent for the financial year

391.51(iii)

Excess amount spent for the financial year [(ii)-(i)]

Nil

(iv)

Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any

Nil

(v)

Amount available for set off in succeeding financial years [(iii)-(iv)]Nil

7. Details of unspent CSR amount for the preceding three financial years:
Sl.
No.

Precedingfinancialyear(s)Amount Balance amounttransferred to in unspent CSR
unspent CSR
account underaccount undersub-section (6)sub-section (6) of Section 135 (1)of Section 135(In ₹ crore)(In ₹ crore)

Amountspent in thefinancialyear(In ₹ crore)

Amount transferred to a fundas specified under Schedule
VII as per second proviso to
sub-section (5) of Section 135,
if anyAmount(In ₹ crore)

Date oftransfer

Amountremaining to
be spent insucceeding
financial years(In ₹ crore)

Deficiency,
if any1

Fiscal 2020

–

–

–

Nil

NA

Nil

NA

2

Fiscal 2021

49.52

21.74

21.74

Nil

NA

Nil

NA

3

Fiscal 2022

51.79

51.79

42.65

Nil

NA

9.14

NA

Note:
(1)

92

Unspent balance as on April 1, 2022

Infosys Integrated Annual Report 2022-23

8. Details of capital assets created or acquired during the financial year:
The number of capital assets created / acquired: 23
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in
the financial year:
Sl.
No.

Short particulars of theproperty or asset(s)[including complete
address and location of theproperty]

Pin codeof thepropertyor asset(s)Date ofcreation

1

Construction of a girls’ hostel
building
Address: Indian
Institute of Information
Technology Tiruchirappalli,
Karumandapam, Pirattiyur,
Tiruchirappalli, Tamil Nadu

620009Feb 3, 2023

2

Infrastructure of amodernized cath lab and avascular access center
Address: Institute of Nephro
Urology at Victoria HospitalCampus, Bengaluru,
Karnataka

560002

3

Facilitating COVID-19 relief
efforts by providing essential
medical equipment
Address: Chengalpattu
Medical College Hospital,
Tamil Nadu

4

Amountof CSR
amountspent (1)(In ₹ crore)

Details of entity/ authority/ beneficiary of theregistered owner
CSR
Registration
Number,if applicable

Name

Registered address

6.98

NA

Indian Instituteof Information
Technology Tiruchirappalli

Indian Instituteof Information
Technology
Tiruchirappalli,
Karumandapam,
Pirattiyur,
Tiruchirappalli,
Tamil Nadu - 620009

Mar 18, 2023

5.10

NA

Victoria Hospital Institute of Nephro
Urology at Victoria
Hospital Campus,
Bengaluru,
Karnataka - 560002

603001Mar 28, 2023

1.50

NA

Chengalpattu
Medical College
HospitalChengalpattu Medical
College Hospital,
Tamil Nadu – 603001

6,971 biogas units for smokefree kitchens to various
beneficiaries(Individual households)
Address: Nagpur and
Bhandara, MaharashtraNA

Apr 1, 2022 to 8.39
Mar 31, 2023

NA

Variousbeneficiaries(Individual
households)

Nagpur and Bhandara,
Maharashtra

54,000 improved cookstoves
to various beneficiaries(Individual households)
Address: Udaipur, RajasthanNA

Apr 1, 2022 to 2.28
Mar 31, 2023

NA

Variousbeneficiaries(Individual
households)

Udaipur, Rajasthan

637,200 improved cookstoves
to various beneficiaries(Individual households)
Address: Latur, Osmanabad,
Solapur, MaharashtraNA

Apr 1, 2022 to 6.90
Mar 31, 2023

NA

Variousbeneficiaries(Individual
households)

Latur, Osmanabad,
Solapur, Maharashtra

7

10,000 improved cookstoves
to various beneficiaries(Individual households)
Address: Garo Hills,
MeghalayaNA

Apr 1, 2022 to 3.19
Mar 31, 2023

NA

Variousbeneficiaries(Individual
households)

Garo Hills, Meghalaya

Note:
(1)

Details of CSR projects less than `1 crore will be made available on the website, at
https://www.infosys.com/investors/reports-filings/documents/csr-capital-assets2022-23.pdf.

Includes projects which have been completed in fiscal 2023.

Infosys Integrated Annual Report 2022-23

93Annexures to the Board's report
9. Reasons for not spending two percent of the average net profit as per sub-section (5) of Section 135
During fiscal 2023, the Company has spent ₹391.51 crore on various projects. The unspent balance of ₹45.33 crore is towards various
ongoing projects and will be transferred to the unspent CSR account and spent in accordance with the CSR Rules.
Additional information – Global CSR activities
Over and above the requirements of the Companies Act, 2013, Infosys has expanded its CSR footprint globally. The details of the activities
of Infosys Foundation USA in fiscal 2023 are provided in the Corporate governance report. The expenditure made towards CSR in
Australia, Europe and through Infosys Foundation USA is as follows:(In US$)

Focus area

AmountTeacher training

1,871,839

Advocacy and awareness603,680

Research and curriculum

368,150Classroom aids and technology

150,000

Student education

1,389,379

Humanitarian assistance in Eastern Europe

1,086,069

Operating expenses

237,762

Total

Bengaluru
April 13, 2023

94

5,706,879

Sd/-

Sd/-

Govind Iyer

Salil Parekh

Chairperson, CSR Committee

Chief Executive Officer
and Managing Director

Infosys Integrated Annual Report 2022-23

Annexure 7 – Conservation of energy, research and development, technology
absorption, foreign exchange earnings and outgo[Particulars pursuant to the Companies (Accounts) Rules, 2014]
Our focused approach on energy efficiency, renewable energy
and carbon offset projects over the years resulted in Infosys
achieving carbon neutrality for four years in a row since
fiscal 2020, across all emissions, as per PAS 2060:2014 standards.
We continue to remain carbon neutral for fiscal 2023, aligning to
global commitments, and supporting the global response to thethreat of climate change.

Resource conservation initiatives
Conservation of natural resources (energy, water) is important
to maintain ecological balance and make them available for
future generations, and help protect the environment. Resource
conservation initiatives at Infosys have been focused, continuous
and imbibed in our operations and new infrastructuredevelopment. The introduction of highly efficient newbuildings, major improvements in current buildings, intelligent
automation, water management plans, and waste treatment andmanagement projects have greatly reduced our environmental
impact. We have been able to expand our business while keeping
resource intensity low.
Increased adoption of renewable energy in our operations hashelped avoiding our emissions, and our high-impact carbon
offset projects have enabled us to offset unavoidable emissions.
Energy: Every new building at Infosys follows the industry
best standards and practices for energy efficiency. Improving
energy efficiency can not only lower utility bills but also reducegreenhouse gas emissions significantly. Our two-pronged
strategy of constructing highly efficient new buildings andoperational excellence in existing buildings has significantly
minimized the energy intensity. Smart automation continues
to play a key role in remote operations management and build
resilience in the system. We strive to exceed expectations by
establishing new standards and introducing creative systems into
our structures, thus conserving energy.
The capital investment in energy conservation projects was`3 crore in fiscal 2023.
The visit of the G20 delegation (Energy Transition Working
Group) to Infosys campus, Bengaluru to witness energy
conservation techniques deployed on the campus, is a testimony
to our advocacy efforts beyond our boundary, and positively
impacting global climate action.
Renewable energy: We have a total capacity of 60 MW of solar PV,
including rooftop and ground-mounted systems. We continue topursue green power purchase from third-party power producers
and engage with power distribution companies for enabling
green tariff. We also work with governments to enable favorable
policies for scaling up green power by corporates in India.
We have also embarked on a journey to source green power forsome of our leased international locations.

Infosys Integrated Annual Report 2022-23

Green buildings: In fiscal 2023, our leased facility in Pune and ourbuildings in Bengaluru, Chennai and Hyderabad were awarded
the Indian Green Building Council (IGBC) Platnium certification.
As part of workplace transformation, buildings with interior
retrofitting received IGBC’s Green Interiors rating, even though
they had already been certified as part of the campus green
certification process. We now have 46 projects at Infosys with thehighest level of green building certification, spanning a total areaof 28.9 million sq.ft.
Transformed workplace: As part of interior retrofits, several
buildings were transformed in fiscal 2023 to improve employee
experience and productivity in the new hybrid working
environment. Sustainability has been one of the main principles
in design, giving importance to materials selection andequipment efficiency, among other aspects, so as to make ourworkplaces employee friendly as well as environment friendly.
Water management: Reduce, recycle and reuse of water throughdemand side measures and implementing efficient technology
has enabled freshwater conservation. The state-of-the-art
sewage treatment plants of tertiary treatment capabilities enable
zero discharge of wastewater from our campuses. We haveinitiated lake rejuvenation projects near our campus, that will
enhance water availability in the surroundings, with additional
expected benefits such as improved health, reduced flooding
and enhance biodiversity.
Waste management: Infosys adopts the principles of Circular
Economy, based on Refuse, Reduce, Reuse, Recycle andRepurpose approach. We seek to uphold our ambition of ‘zero
waste to landfill’ through active minimization combined withtechnology investment in recycling and streamlining systems
and processes. TRUE certification for zero waste, aimed atdiversion of all non-hazardous solid waste from landfill is being
adopted by some of our campuses. We focused on diversion ofsome of the identified waste going for incineration into coprocessing, which refers to the simultaneous recycling of mineralmaterials and recovery of energy within one single industrial
process of cement production.
Carbon offsets: After reducing and avoiding emissions to the
maximum extent possible, there are unavoidable emissions
that need to be addressed through the carbon offset program.
Infosys continues to identify projects that have a high social
impact – improving health and livelihoods of rural families,
creating rural jobs, etc., and along the way, also generating
carbon offsets for the Company. Our unique offset programis certified to the highest level (Gold Standard) in quality,
authenticity and transparency.
This year, we added new cookstove projects in Rajasthan,and biogas projects in Maharashtra and Karnataka. While thecookstove projects improve health of people in the households
through low-smoke, low-firewood use, the household biogas
units benefit the families by minimizing the fuel cost and utilizing95Annexures to the Board's report
cattle manure. Our carbon offset program is spread across six
states in India, and has benefited 2,40,000 + rural families, andcreated over 2,800 rural jobs.
Carbon neutral events: Infosys has envisioned to organize global
events to promote our best practices in carbon neutrality. All
measures are taken to promote environmental protection,
including the use of eco-friendly materials, no plastic, andconservation of energy and water. A precise assessmentof the carbon emissions resulting from the event is done
and the emissions are balanced out by our carbon offset
initiatives. In fiscal 2023, six events organized by Infosys were
declared carbon neutral.
Infosys Mangaluru campus | From barren land to a verdantcampus: One of the most significant and proven steps
to tackle climate change is increasing the green coverthrough tree plantation. Trees are effective in cleansing
the air, securing the soil and limiting erosion, resulting in
improved water management.
We created a two-volume book that outlines the processof transforming a barren piece of land on the outskirts ofMangaluru into a lush green campus with a diverse array of floraand fauna. The book highlights the approach and methodology,
and the scientific way in which greening of the campus wasachieved on a large scale within a brief span of time. The bookis expected to be a repository of the endemic species of theWestern Ghats, for academicians and the scientific community.
The book demonstrates the transformation that is possible,
and intends to inspire corporations, developers, administrationand communities towards biodiversity preservation andgreen transformation.

Health, safety and environment
The Health, Safety and Environmental Management System(HSEMS) at Infosys reflects our commitment to protecting theenvironment, providing an appropriate working environment,
and protecting the health and safety of personnel, including
employees, contractors and visitors. Infosys is ISO 14001:2015
and ISO 45001:2018 certified in line with our strategy. The
HSEMS takes cognizance of interested parties and focuses oncompliance with applicable legislations in the regions where we
operate. It includes well-defined policies and procedures andalso strives to keep interested parties well-informed, trained andcommitted to our HSE process.

Technology absorption
Live Enterprise: An enterprise that senses, feels and responds inreal-time – this was the theme of our transformation journey ofthe past three years. It had to be a mobile-first approach so that
employees were connected to the organization wherever they
were in the world and could access the organization’s assets
to learn and contribute. The response has been phenomenal– the InfyMe mobile app, with 250+ features, has been
downloaded by more than 2,78,000 users, and more than 44,000
users have rated it 4.7/5 on Google Play Store. With process
bursting, we have seen many of our key processes become fasterand more responsive and the Live Enterprise platform has itself
been built on the latest open source stack. After the internal
success, we are also seeing interest for the platform among ourclients as seven clients have already been onboarded and many
more are in discussions.
96

To enable this, our core backend infrastructure was transformed
to host modern applications, using the scalability of cloud,security of on-premise infrastructure in a hybrid cloud
deployment using open source technologies with highly
scalable container orchestration solutions like Kubernetes for
microservices. Telemetry infrastructure using the ELK stackprovided enhanced real-time visibility and enabled proactive
error detection and correction.
Modern, hybrid, and secure workplace: Our hybrid workplaceecosystem brings together technologies such as borderless
ODCs, virtual collaboration tools, and self-service applications
to provide our employees much-needed flexibility to workfrom anywhere. Our robust IT management system minimizes
threats and prevents attacks, through a continuous cycle ofvulnerability assessment and remediation, to safeguard our data
and brand reputation.
Cloud-native application platform: As part of modernizing
applications, some applications need to be exposed todifferent user bases with varied authentication mechanisms.
The cloud‑native application platform gives the capabilities ina ready-to-use architecture. This enables quick onboarding of
applications with industry-standard security along with greater
scalability and availability using the power of cloud.

Energy-efficient IT infrastructure
We have adopted a multi-pronged strategy to make ourcomputer workload energy-efficient and environment-friendly.
Some of the measures implemented are:Public cloud adoption: 68% of the internal IT applications havebeen migrated to the public cloud. All our employees have beenenabled for cloud-based collaboration platform for messaging,presence, video, and other requirements.
Data center modernization: A strategic initiative launched by
InfosysIT to modernize the data center IT landscape to make it
future-ready, continues to yield high rewards. Density‑optimized
hyperscale platforms were deployed to enable high-density
server virtualization and consolidation across the enterprise.
Hyperscale platforms are open-driven infrastructure innovations
that enable cloud-scale agility and efficient resource pooling andutilization. This initiative is expected to deliver power savings andreduce the total cost of ownership for the organization.
InfosysIT has focused on investing in on Data Center
Infrastructure Management (DCIM) tools to get accurate visibility
across the entire data center IT and facility stack, which is thefoundation for optimization initiatives.
Enterprise storage: We provide around 1.8PB of storage capacity
for employees, revenue projects, and internal requirements on
all flash storage with fabric pool and storage grid technology.
Data is marked hot and cold based on policy. Cold data is
automatically moved to cheaper, larger capacity storage,
resulting in data tiering and savings in terms of data center
footprint, power consumption, and cooling.
Cloud-native development environment: The open source-based
cloud-native development platform is built on Hyper Converged
Infrastructure (HCI) and compute which has helped reduce data
center footprint and power and cooling consumption.

Infosys Integrated Annual Report 2022-23

Awards and recognition – Information Systems
External award name

Theme

Award sponsor (Company)

IDG CIO 100 Global for 2022

For digital business growth through technology
innovation

IDG / Foundry

CII Tata Communications Centre for digitaltransformation – CIO Excellence Awards
2022

For inspiring how IT leadership and stakeholders
reshape tech industry

CII Tata Communications

CII DX Award for 2022

For operational efficiency and digital experience

CII

Data Quest Digital Leader Awards

For ingenuity and unwavering dedication to
improving the customer experience

Data Quest

CORE Media CIO Crown Award for Digital
Transformation Pioneer in 2022

For being a Digital Transformation Pioneer

CORE Media

BitStream Mediaworks Pvt. Ltd 7th Innovative Innovative IT project
CIO awards 2022

CIO Axis – BitStream Mediaworks Pvt. Ltd

CIOAXIS CXO INSIGHTS Award 2022

CIO Axis – BitStream Mediaworks Pvt. Ltd

Best IT transformers using Data, AI and ML,
automation

Research and development (R&D) expenditure – standalone(In ` crore)

Revenue expenditure

639
529
16

Capital expenditure

Activity in foreign currency – standalone(In ` crore)

1,21,605

Earnings

1,01,854

541

R&D expenditure /revenue (%)
2023

We have built an extensive direct marketing network around theworld, including North America, Europe and Asia‑Pacific. These
offices are staffed with sales and marketing specialists who sell
our services to large international clients.

12
655

Total

Foreign exchange earnings and outgo

0.5
0.5

2022

70,534

Expenditure

57,224

Net foreign exchangeearnings (NFE)

51,071
44,630

NFE / earnings (%)

42.0

Future plan of action
We will continue to collaborate with leading national andinternational universities, product vendors and technology
startups. We are creating an ecosystem to co-create businesssolutions on client-specific business issues.

43.8
2023

2022

for and on behalf of the Board of Directors

Bengaluru
April 13, 2023

Infosys Integrated Annual Report 2022-23

Sd/-

Sd/-

D. Sundaram

Salil Parekh

Lead Independent Director

Chief Executive Officer
and Managing Director

97

98

Annexure 8 – Corporate policies
We seek to promote and follow the highest level of ethical standards in all our business transactions guided by our value system. The SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended, mandates the formulation of certain policies for all listed companies. The corporate governance policies are available on the
Company’s website, at https://www.infosys.com/investors/corporate-governance/Pages/policies.aspx. The policies are reviewed periodically by the Board and updated asneeded. During the year and at its meeting held on April 13, 2023, the Board revised and adopted some of the policies.
Key policies that have been adopted are as follows:
Name of the policy

Brief description

Web link

Whistleblower Policy(Policy on vigil mechanism)

The Company has adopted a whistleblower mechanism to report concerns
about unethical behavior, actual or suspected fraud, or violation of theCompany’s Code of Conduct and Ethics. The policy was revised and adopted
effective January 12, 2022.

https://www.infosys.com/investors/corporategovernance/Documents/whistleblower-policy.pdf

Code of Conduct and Ethics

The Company has adopted the Code of Conduct and Ethics which forms thefoundation of its ethics and compliance program. The policy was revised andadopted effective October 13, 2021.

https://www.infosys.com/investors/corporategovernance/Documents/CodeofConduct.pdf

Capital Allocation Policy

The Policy applies to the distribution of free cash flow as dividend or buyback
over the next five-year period ending in fiscal 2024. The policy was revised
and adopted effective July 12, 2019.

https://www.infosys.com/investors/corporategovernance/documents/capital-allocation-policy.pdf

Dividend Distribution Policy

The Company has adopted the Dividend Distribution Policy to determine the https://www.infosys.com/investors/corporatedistribution of dividends in accordance with the provisions of applicable laws. governance/Documents/dividend-distribution.pdf
The policy was revised and adopted effective April 13, 2023.

Infosys Code on Fair Disclosures The policy is aimed at providing clear guidelines and procedures forhttps://www.infosys.com/investors/corporateand Investor Relations
disclosing material information outside the Company in order to provide
governance/documents/code-fair-disclosuresaccurate, timely and symmetric communications to our shareholders and the investor-relations.pdf
financial markets. The policy was revised and adopted effective April 13, 2023.

Infosys Integrated Annual Report 2022-23

Policy for Determining
Materiality for Disclosures

This policy applies to disclosures of material events affecting Infosys andits subsidiaries. This policy is in addition to the above-mentioned Infosys
Code on Fair Disclosures and Investor Relations. The policy was revised andadopted effective April 14, 2021.

https://www.infosys.com/investors/corporategovernance/Documents/policy-determiningmateriality-disclosures.pdf

Recoupment Policy

The policy deals with compensation clawback provisions if the Company
https://www.infosys.com/investors/corporaterestates its financial statements. It allows the Company to recover any
governance/Documents/recoupment-policy.pdf
incentive-based compensation received by an executive officer that is inexcess of what would have been payable based on the restated and correctedfinancial statements. The policy was adopted effective January 14, 2016.

Nomination
and Remuneration Policy

This policy formulates the criteria for determining qualifications,competencies, positive attributes and independence for the appointment of
a director (executive / non-executive) and also the criteria for determining
the remuneration of the directors, KMP, senior management and other
employees. The policy was revised and adopted effective March 17, 2023.

https://www.infosys.com/investors/corporategovernance/Documents/nominationremuneration-policy.pdf

Infosys Integrated Annual Report 2022-23

Name of the policy

Brief description

Web link

Corporate Social
Responsibility Policy

The policy outlines the Company’s strategy to bring about a positive impact
on society through programs relating to hunger, poverty, education,
healthcare, environment, and lowering of the Company’s resource footprint.
The policy was revised and adopted effective January 14, 2021.

https://www.infosys.com/investors/corporategovernance/Documents/corporate-socialresponsibility-policy.pdf

Policy on Material Subsidiaries

The policy is used to determine the material subsidiaries and material
unlisted Indian subsidiaries of the Company and to provide thegovernance framework for them. The policy was revised and adopted
effective April 12, 2019.

https://www.infosys.com/investors/corporategovernance/Documents/material-subsidiaries-policy.pdf

Related Party
Transactions Policy

The policy regulates all related party transactions of the Group. The policy
was revised and adopted effective April 13, 2023.

https://www.infosys.com/investors/corporategovernance/Documents/related-partytransaction-policy.pdf

Document Retention andArchival Policy

The policy deals with the retention and archival of corporate records ofInfosys Limited and all its subsidiaries. The policy was revised and adopted
effective April 13, 2022.

https://www.infosys.com/investors/
corporate-governance/Documents/documentretention-archival-policy.pdf

Board Diversity Policy

The policy sets out the approach to diversity on the Board of the Company.
The policy was revised and adopted effective April 13, 2022.

https://www.infosys.com/investors/corporategovernance/documents/board-diversity-policy.pdf

Enterprise Risk
Management Policy

This Policy is to institutionalize a formal risk management function andframework in the Company. This policy is drafted in accordance with theguidelines provided under the Charter of the Risk Management Committeeof the Board of Directors, and pursuant to Regulation 21 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended.
The policy was revised and adopted effective April 13, 2023.

https://www.infosys.com/investors/corporategovernance/documents/enterprise-riskmanagement-policy.pdf

99Statutory reports

Management’s discussion and analysis
Overview
Infosys is a leading provider of consulting, technology,
outsourcing and next-generation digital services,
enabling clients to create and execute strategies for theirdigital transformation.

We offer end-to-end service offering capabilities in consulting,software application development, integration, maintenance,
validation, enterprise system implementation, productengineering, infrastructure management and businessprocess management.

Our purpose is to amplify human potential and create the next
opportunity for people, business and communities. We are
guided by our value system which motivates our attitudes andactions. Our core values are Client value, Leadership by example,
Integrity and transparency, Fairness, and Excellence (C-LIFE).

We have built industry-specific domain and technology
expertise, and capabilities in methodologies such as Design
Thinking and agile software development. These give us theability to articulate and demonstrate long-term value to ourclients around the world, with whom we have deep, enduring
and expansive relationships.

Our strategic objective is to build a sustainable organizationthat remains relevant to the agenda of our clients, while
creating growth opportunities for our employees, generating
profitable growth for our investors and contributing to thecommunities that we operate in. There are numerous risks andchallenges affecting our business. These are discussed in the Risk
management report section of the Integrated Annual Report.

We have invested in building proprietary intellectual property
in software platforms and products, such as Infosys Cobalt™,
Finacle®, McCamish, Panaya, Meridian, Helix, Infosys Equinox,
Wingspan, the Edge suite of products, Stater, Infosys Applied AI,
CyberNext, Infosys Cortex and Infosys Live Enterprise Application
Suite, which either amplify our own services or provide
differentiated solutions for our clients’ business processes.

I.

We have continued to invest in Infosys Cobalt™ – a set ofservices, solutions and platforms for enterprises to accelerate
their cloud journey.

Industry structure and developments

Technology is transforming businesses in every industry aroundthe world in a profound and fundamental way. In fiscal 2023, we
saw emerging technologies, like generative AI, 5G, Low CodeNo Code, shape the future of industries. Responsible businessapproaches, including embracing ESG, have gained traction.
We continued to witness businesses attempting to reimagine
their cost structures, increase business resilience and agility,
personalize experiences for customers and employees, andlaunch new and disruptive products and services
For more information, refer to the Our business context section of
the Integrated Annual Report.

II. Opportunities and threats
Our strategy
Our clients and prospective clients are faced with transformative
business opportunities due to advances in software andcomputing technology. These organizations are dealing with thechallenge of having to reinvent their core offerings, processes
and systems rapidly and position themselves as ‘digitallyenabled’ or ‘digital first‘ organizations. The journey to the digital
future requires not just an understanding of new technologies
and new ways of working, but a deep appreciation of existing
technology landscapes, business processes and practices. Our
strategy is to be a navigator for our clients as they ideate, planand execute on their journey to a digital future.
For details of our continued investments and outcomes ofour strategic initiatives, refer to the Strategy section of theIntegrated Annual Report.

Our strengths
We believe that we are well-positioned for the principal
competitive factors in our business. With over four decades ofexperience in managing the systems and workings of global
enterprises, we believe we are uniquely positioned to help
them steer through their digital transformation with our Digital
Navigation Framework.
100

Infosys Equinox, our flagship digital commerce platform, is aset of core microservices encompassing all digital commerce
scenarios to help enterprises rapidly build and deploy features
across all touchpoints and channels, without the friction
associated with legacy platforms.
We have perfected sophisticated service delivery and quality
control processes, standards and frameworks, which haveresulted in a track record of performance excellence and client
satisfaction. Our Global Delivery Model effectively integrates
global and local execution capabilities to deliver high-quality,
seamless, scalable and cost-effective services for large-scale
outsourcing of technology projects fuelled by automation,
intelligence and collaboration technologies.
We have nurtured premier ecosystem alliances with enterprisesoftware companies, cloud providers and innovative startup
companies to be able to offer holistic solutions to our clients.
We have the ability to attract and retain high-quality
management and technology professionals, and sales personnel
globally and at scale.
Our internal research and development teams identify,
develop and deploy new offerings leveraging next-generation
technologies. We have invested extensively in infrastructure andsystems to enable learning and education across the enterprise atscale. These give us the ability to keep pace with ever-changing
technology and how they apply to customer requirements.
We have a strong and well-recognized brand.
We have the financial strength to be able to invest in
personnel and infrastructure to support the evolving
demands of customers.
We maintain high ethical and corporate governance standards
to ensure honest and professional business practices and protect
the reputation of the Company and our customers.

Infosys Integrated Annual Report 2022-23

Our competition

5. Financial assets

We see intense competition in traditional services, a rapidlychanging marketplace and the emergence of new players inniche technology areas.

A. Investments

Read more in Our business context section in the
Integrated Annual Report.

III. Financial condition
Refer to the Standalone and Consolidated financial statements inthis Integrated Annual Report for detailed schedules and notes.

1. Equity share capital
We have one class of shares – equity shares of par value ₹5each. During the year, the movement in share capital was
primarily on account of buyback of 6,04,26,348 shares resulting
in a cash outflow of ₹9,300 crore (excluding transaction cost
and tax on buyback).

2. Other equity
The movement in retained earnings was on account of profit
earned during the year, payment of dividends and buyback ofequity. Decrease in securities premium is mainly due to buybackof equity shares and an increase on account of the exercise ofstock options. The Group has made an irrevocable election
to present the subsequent changes in fair value of certain
instruments in other comprehensive income.
The Company has created a Capital Redemption Reserve equal to
the nominal value of the shares bought back as an appropriationfrom the general reserve and retained earnings.
During the year, an amount has been transferred to the Special
Economic Zone Re-investment Reserve out of the profits ofeligible SEZ units. The reserve should be utilised for acquiring
new plant and machinery for the purpose of its business in theterms of the Sec 10AA(2) of the Income-tax Act, 1961, that has
been created out of the profits of eligible SEZ units.

3. Property, plant and equipment
Additions to gross block were mainly on computer equipment
and infrastructure.

4. Goodwill and other intangible assets
On a consolidated basis, carrying value of goodwill as on March
31, 2023 is ₹7,248 crore, which increased mainly on account ofadditions to goodwill amounting to ₹630 crore for oddity and
BASE life science group. During the previous year, the carrying
value of goodwill was ₹6,195 crore.
On a consolidated basis, the carrying value of intangible assets
as on March 31, 2023 is ₹1,749 crore, whereas on March 31, 2022,
it was ₹1,707 crore. These primarily consist of intangible assets
acquired through business combinations amounting to ₹328
crore for the year ended March 31, 2023.
Refer to Note 2.4.2 of the Consolidated financial statements
for further details.

Infosys Integrated Annual Report 2022-23

On a standalone level, during the year, we invested additionallyin our subsidiaries, for the purpose of acquisition of entities,
operations and expansions.
Refer to Annexure 1 to the Board’s report for the statement
pursuant to Section 129(3) of the Companies Act, 2013, forthe summary of the financial performance of our subsidiaries.
The audited financial statements and related information ofsubsidiaries will be available on our website, at www.infosys.com.
We invest in the startup ecosystem to gain access to innovation
that, when combined with our services and solutions, can benefit
our clients. These investments are typically minority equity
positions in startup companies and / or venture capital funds.
Our investments comprise liquid mutual funds units, target
maturity-fund units, tax-free bonds, non-convertible debentures,certificates of deposit, commercial paper, government
securities (G-secs) and quoted bonds issued by governmentand quasi-government organizations. Certificates of deposit
and commercial papers represent marketable securities ofbanks, NBFCs and eligible financial institutions for a specified
time period with high credit rating by domestic credit rating
agencies. G-secs are highly liquid and marketable instruments
issued across tenure, backed by the Government of India andcarries a sovereign credit. Investments made in non-convertible
debentures represent debt instruments issued by governmentaided institutions and financial institutions with high credit
rating. The majority of investments of the Company are fairvalued based on Level 1 or Level 2 inputs. 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 ourrisk management program.
B. Trade receivables
Days Sales Outstanding (DSO) has reduced to 62 days in
the current year from 67 days in the previous year due
to the Management’s strong focus on ensuring timely
collection from clients.
C. Cash and cash equivalents
Our cash and cash equivalents comprise deposits with banks
and financial institutions with high credit ratings assigned byinternational and domestic credit rating agencies which can bewithdrawn at any point of time without prior notice or penalty on
principal. Ratings are monitored periodically.
D. Loans
We provide loans to subsidiaries as per business requirement.
E. Other financial assets
Restricted deposits represent amounts deposited withfinancial institutions to settle employee-related obligations
as and when they arise during the normal course of business.
Unbilled revenues are classified as financial assets as right toconsideration is unconditional and is due only after passage

101

Management’s discussion and analysisof time. Foreign currency forward and options contracts areentered into to mitigate the risk of changes in exchange rates on
foreign currency exposures. The counterparty for these contracts
is generally a bank.

6. Other assets
Unbilled revenues are classified as non-financial asset where theright to consideration is dependent on completion of contractual
milestones. Unbilled increase is mainly attributable to complex
and integrated large deals. Withholding taxes and others
represent credits that can be availed against local taxes payablein various countries. Deferred contract cost mainly comprises
the cost of obtaining a contract and the cost of fulfilling acontract recorded in accordance with Ind AS 115, Revenue fromContracts with Customers.

7. Deferred tax assets / liabilities
Net deferred tax asset comprising deferred tax assets lessdeferred tax liabilities has decreased primarily on accountof temporary difference in the Special Economic Zone Reinvestment Reserve, deferred tax liability on intangibles frombusiness combination partially offset by deferred tax asset on
post-sales client support, allowances for trade receivables andcompensated absences.

8. Income tax assets / liabilities
Our net profit earned from providing software development
and other services outside India is subject to tax in the country
where we perform the work. Most of our taxes paid in countries
other than India can be claimed as credit against our tax
liabilities in India.

10. Other liabilities
Withholding and other taxes payable represent local taxes
payable in various countries in which we operate. Invoicing
in excess of revenues are classified as unearned revenues. We
provide for provident fund to eligible employees of Infosys,
which is a defined benefit plan as the Company has an obligation
to make good the shortfall, if any, between the return fromthe investments of the trust and the notified interest rate. The
Company operates the defined benefit pension plan in certain
overseas jurisdictions, in accordance with local laws. These plans
are managed by third-party fund managers. We provide for
gratuity, a defined benefit retirement plan (“the Gratuity Plan”),
covering eligible employees in India. The Gratuity Plan provides
a lump sum payment to vested employees at retirement, death,
incapacitation, or termination of employment, of an amountbased on the respective employee’s salary and the tenure of
employment. We also operate defined benefit pension plan incertain 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 alumpsum payment as set out in rules of each fund and includes
death and disability benefits.

11. Provisions
Provision for post-sales client support is towards likely
cost for providing client support to fixed-price andfixed‑timeframe contracts.

12. Leases
Additions mainly comprise lease of computers and building
taken on lease in certain locations in India.

9. Financial liabilities
Liabilities for accrued compensation to employees include
the provision for bonus, accrued salaries, incentives andretention bonus payable to the staff. Financial liability underoption arrangements represents redemption liability towards
Stater, Infosys Compaz and HIPUS acquisitions to purchase thecorresponding minority stake. Accrued expenses represent
amounts accrued for other operational expenses. Retention
monies represent monies withheld on contractor payments,
pending final acceptance of their work. Compensated absences
are both accumulating and non-accumulating in nature. The
expected cost of accumulating compensated absences isdetermined by actuarial valuation. Other financial liability
includes financing arrangements entered into by the Company
with a third party towards deferred contract cost assets.

102

Infosys Integrated Annual Report 2022-23

IV. Results of our operations
The function-wise classification of the Standalone Statement of Profit and Loss is as follows:(In ₹ crore)

Particulars

Year ended March 31,
2023

%

2022

%

Revenue from operations

1,24,014

100.0

1,03,940

100.0

Cost of sales

85,76269.2

69,62967.0

Gross profit

38,25230.8

34,311

33.0

5,018

4.0

4,125

4.0

Operating expenses
Selling and marketing expenses

5,293

4.3

4,787

4.6

Total operating expenses

General and administration expenses

10,311

8.3

8,912

8.6

Operating profit

27,941

22.5

25,399

24.4

157

0.1

128

0.1

Finance cost
Other income, net

3,859

3.1

3,224

3.1

Profit before tax

31,64325.5

28,49527.4

Tax expense

8,375

6.7

7,260

7.0

Profit for the year

23,26818.8

21,235

20.4

The function-wise classification of the Consolidated Statement of Profit and Loss is as follows:(In ₹ crore)

Particulars

Year ended March 31,
2023

%

2022

%

Revenue from operations

1,46,767

100.0

1,21,641

100.0

Cost of sales

1,02,353

69.7

81,99867.4

Gross profit

44,41430.3

39,643

32.6

Selling and marketing expenses

6,249

4.3

5,156

4.2

General and administration expenses

7,260

4.9

6,472

5.4

Total operating expenses

13,5099.2

11,628

9.6

Operating profit

30,90521.1

28,015

23.0

284

0.2

200

0.2

Operating expenses

Finance cost
Other income, net

2,701

1.8

2,295

2.0

Profit before tax

33,32222.7

30,11024.8

Tax expense

9,214

6.3

7,964

6.6

Profit after tax

24,10816.4

22,146

18.2

13

0.0

36

0.0

24,095

16.4

22,11018.2

Non-controlling interests
Profit attributable to the owners of the Company

Infosys Integrated Annual Report 2022-23

103

Management’s discussion and analysis
1. Revenue
The growth in our revenues in fiscal 2023 from fiscal 2022 is as follows:(In ₹ crore)

Particulars
RevenueStandalone

Consolidated

2023

2022

% change

2023

2022

% change

1,24,014

1,03,940

19.3

1,46,767

1,21,641

20.7

The increase in revenues was primarily attributable to an increase in digital revenues, large deal wins and volume increases acrossmost of the segments.
The revenues from digital and core services for fiscals 2023 and 2022 are as follows:(In ₹ crore)

Particulars

Consolidated
2023

2022

% change

Digital91,272

69,40431.5

Core55,49552,237

6.2

Revenue growth in reported terms includes impact of currency
fluctuations. We, therefore, additionally report the revenue
growth in constant currency terms, which represents the real
growth in revenue excluding the impact of currency fluctuations.
We calculate constant currency growth by comparing current
period revenues in respective local currencies converted to
INR using prior-period exchange rates and comparing thesame to our prior-period reported revenues. Our revenues inreported currency terms for fiscal 2023 is US$ 18,212 million,a growth of 11.7%. Our revenues for fiscal 2023 in constantcurrency grew by 15.4%.
We added 458 new customers (gross) during fiscal 2023 ascompared to 451 new customers (gross) during fiscal 2022.
On a consolidated basis, for the year ended March 31, 2023,
approximately 97.4% were export revenues whereas 2.6% weredomestic revenues, while for the year ended March 31, 2022,
97.1% were export revenues whereas 2.9% were domestic
revenues. Refer to the ‘Segmental profitability’ section in thisreport for more details on the analysis of segment revenues.

2. Expenditure
Cost of sales
The cost of efforts, comprising employee cost and cost oftechnical sub-contractors, has increased as a percentage ofrevenue from 60.7% in fiscal 2022 to 61.6% in fiscal 2023 on astandalone basis and from 57.6% in fiscal 2022 to 58.0% in fiscal
2023 on a consolidated basis. The cost of efforts has increased
mainly on account of compensation increase, increase inheadcount and higher onsite mix partially offset by decrease insub‑contractors cost.
Third-party items bought for service delivery to clients include
software and hardware which are integral to our overall service
delivery to clients.

104

Selling and marketing expenses
The selling and marketing expenses on standalone basis haveremained unchanged as a percentage of revenue during fiscal
2023 at 4.0%, and have increased on consolidated basis during
fiscal 2023 to 4.3% from 4.2% in fiscal 2022, mainly on account of
increase in branding and marketing expenses and travelling costs
partially offset by decrease in employee benefit costs.
General and administration expenses
The general and administration expenses on standalone andconsolidated basis have reduced as a percentage of revenue
during fiscal 2023 to 4.3% from 4.6% in fiscal 2022, and 4.9%
during fiscal 2023 from 5.3% in fiscal 2022, respectively,
mainly on account of a decrease in employee benefit costs
and consulting and professional expenses partially offset byincrease in travel expenses.

3. Other income and finance cost
Other income primarily includes income from investments, gain /loss on investments, foreign exchange gain / loss on forward andoptions contracts and foreign exchange gain / loss on translationof other assets and liabilities. In fiscal 2023, the Company
received ₹1,463 crore of dividend from our subsidiary, which isreflected in the Standalone financial statements.
Interest income in fiscal 2023 has increased as compared to fiscal
2022 primarily due to a increase in yield on investments. We use
foreign exchange forward and options contracts to hedge our
exposure against movements in foreign exchange rates. Financecost is on account of leases. 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.

Infosys Integrated Annual Report 2022-23

4. Provision for tax

5. Segmental profitability

We have provided for our tax liability both in India and overseas.
The applicable Indian corporate statutory tax rate for both theyears ended March 31, 2023, and March 31, 2022 is 34.94%.

The Company’s operations predominantly relate to providing
end-to-end business solutions to enable clients to enhance
performance of their business. Business segments of theCompany are primarily enterprises in Financial Services
and Insurance; enterprises in Manufacturing; enterprises in
Retail, Consumer Packaged Goods and Logistics; enterprisesin 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 othersegments. All other segments represent the operating segmentsof businesses in India, Japan, China, Infosys Public Services andother enterprises in public services. This is discussed in detailin Note 2.26 to the Consolidated financial statements in thisIntegrated Annual Report.

Particulars

Standalone

Consolidated

2023

2022

2023

2022

Income tax expense (In ₹ crore)

8,375

7,260

9,214

7,964

Effective tax rate (In %)

26.5

25.5

27.7

26.4

Effective tax rate is generally influenced by various factors,
including differential tax rates, non-deductible expenses,
exempt non-operating income, overseas taxes, benefits fromSEZ units, tax reversals and provisions pertaining to prior periods
primarily on account of adjudication of certain disputed matters,
filing of tax return and completion of assessments, acrossvarious jurisdictions.
Business segments – Consolidated
Particulars

Financial
Services(In ₹ crore)

RetailCommunication Energy, Utilities, Manufacturing Hi-Tech
Resources andServicesLifeAll other Total
Sciences segments

Segmental revenues
2023

43,763

21,20418,086

18,53919,035

11,867

10,085

4,188

1,46,767

2022

38,902

17,734

15,182

14,484

13,336

10,036

8,517

3,450

1,21,641

12.5

19.6

19.1

28.0

42.7

18.2

18.4

21.4

20.7

339

35,130Growth (%)

Segmental operating income
2023

10,843

6,396

3,759

5,155

3,113

2,959

2,566

2022

10,314

6,130

3,372

4,225

2,408

2,495

2,380

167

31,491

5.1

4.3

11.5

22.0

29.3

18.6

7.8

103.0

11.6

Growth (%)

Segmental operating margin (%)
2023

24.8

30.2

20.8

27.8

16.4

24.9

25.4

8.1

23.9

2022

26.5

34.6

22.2

29.2

18.1

24.9

27.9

4.8

25.9

The following graph sets forth our revenue by geography:(In ₹ crore)
75,058 (61.7%)
12,869 (10.6%)
3,585 (2.9%)

90,724 (61.8%)
14,507 (9.9%)
3,861 (2.6%)
37,675 (25.7%)

30,129 (24.8%)
Total

Total

1,46,767

1,21,641

2023

2022

Growth in %North America - 20.9

Europe - 25.0

India - 7.7

Rest of the World -12.7

Total - 20.7

Overall segment profitability has decreased primarily on accountof decrease in utilization, increase in employee compensationand higher spend on third-party software and travel partially
offset by benefit on account of cost optimization initiatives andcurrency fluctuations.
Infosys Integrated Annual Report 2022-23

6. Liquidity
Our principal source of liquidity are cash and cash equivalents
and cash flow that we generate from operations. We have nooutstanding borrowings. We believe our working capital issufficient for our requirements.
Our growth has been financed largely through cash
generated from operations.
Our cash flows are robust. Our operating cash flows havedecreased in fiscal 2023 as compared to fiscal 2022 mainlyon account of outflow in working capital and higher
income tax payments.
Consolidated cash and investments of ₹31,286 crorecomprise cash and cash equivalents, current and non-current
investments excluding investments in unquoted equity andpreference shares and others.

105

Management’s discussion and analysis
Capital Allocation Policy

Net profit has increased from ₹22,110 crore to ₹24,095 croreon a consolidated basis and from ₹21,235 crore to ₹23,268
crore on a standalone basis. Average net worth has notincreased in line with increase in net profit on account ofshare buyback and dividend.

Refer to the Board’s report in this Integrated Annual Reportfor details on our Capital Allocation Policy reviewed andapproved on July 12, 2019.

7. Related party transactions•

These have been discussed in detail in Note 2.24 to theStandalone financial statements in this Integrated Annual Report.

8. Events occurring after Balance Sheet date
There were no significant events that occurred after the Balance
Sheet date apart from the ones mentioned in ‘Material changes
and commitments affecting financial position between the endof the fiscal and date of the report’ in the Board’s report in thisIntegrated Annual Report.

••

9. Key financial ratios
In accordance with the SEBI (Listing Obligations and Disclosure
Requirements) (Amendment) Regulations, 2018, the Company isrequired to give details of significant changes (change of 25% ormore as compared to the immediately previous financial year) in
key sector-specific financial ratios.
The Company has identified the following ratios as key financial
ratios:Particulars

Standalone

Consolidated

2023

2022

2023

2022

Market capitalization
to revenues (times)

NA

NA

4.0

6.6

Price / Earnings (times)

NA

NA

24.8

36.3

–

–

62

67

22.2

30.1

24.9

31.7

Revenue growth (%)

19.3

20.9

20.7

21.1

Operating margin (%)

22.5

24.4

21.1

23.0

Net profit margin (%)

18.8

20.4

16.4

18.2

Basic EPS (`)

55.48

50.27

57.63

52.52

Days Sales
Outstanding(1)Cash and investment
as a % of total assets

(2)

(1)

The Company does not track DSO at a standalone level.

(2)

Includes cash and cash equivalents and investments, excluding
investments in unquoted equity, preference shares, compulsorily
convertible debentures and others.

Ratios where there has been a significant change from fiscal
2022 to fiscal 2023
Revenue growth, operating margin, net profit margin as
well as change in basic EPS have been explained in therelevant sections above.
•

The details of return on net worth at standalone andconsolidated levels are as follows:
Particulars
Return on net worth
(%)

106

Standalone

V. Outlook, risks and concerns
This section lists forward-looking statements that involve risks
and uncertainties. Our actual results could differ materiallyfrom those anticipated in these statements as a result of certain
factors. Our outlook, risks and concerns are as follows:

I. Risks related to the markets in which we and ourclients operate
•

•

•

•

•

•

Consolidated

2023

2022

2023

2022

34.0

30.2

32.0

29.1

Market capitalization to revenue ratio is computed as market
capitalization as on March 31st of the respective years byrevenue. The movement in this ratio is due to change in shareprice as at the end of March 2023 and March 2022 and due tobuyback of equity shares.
Price earnings ratio is computed as market share price as on
March 31st of the respective years by earnings per share. The
movement in this ratio is due to change in share price as at
the end of March 2023 and March 2022.
Cash and investments have decreased due to shareholder
payouts on account of buyback and dividend in line with our
Capital allocation policy.

Spending on technology products and services by our clientsand prospective clients fluctuates depending on manyfactors, including the economic, geo-political, monetary andfiscal policies and regulatory environment in the markets inwhich they operate.
An economic slowdown or other factors may affect theeconomic health of the United States, the United Kingdom,
the European Union (EU), Australia or those industries where
our revenues are concentrated.
Our clients may operate in sectors which are adversely
impacted by climate change, which could consequently
impact our business and reputation.
Restrictions on visas, cost increases in obtaining such
visas, increases in required minimum wage levels for visa
dependent employees, inordinate delays in obtaining visas
due to the pandemic and / or increased enforcement indifferent countries may affect our ability to compete for, andprovide services to clients in work location countries, which
could adversely affect our business, results of operations andfinancial condition.
Our clients may be the subject of economic or othersanctions by governments and regulators in key geographiesthat we operate in, limiting our ability to grow these
relationships, and risking increased penalties and exposure ofour business to consequential sanctions.
A large part of our revenues is dependent on a limited
number of our clients, and the loss of any one of our majorclients could significantly impact our business.

Infosys Integrated Annual Report 2022-23

•

•

•

•

•

Financial stability of our clients may be affected owing toseveral factors such as demand and supply challenges,
currency fluctuations, regulatory sanctions, geo-politicalconflicts and other macroeconomic conditions which may
adversely impact our ability to recover fees for the services
rendered to them.
Outbreaks of contagious diseases, viruses or pandemics,
such as the COVID-19 pandemic, could disrupt our business,financial condition, and results of operations.
We may not be able to provide end-to-end business solutions
for our clients, which could lead to clients discontinuing theirwork with us, which in turn could harm our business.
Intense competition in the market for technology services
could affect our win rates and pricing, which could reduce
our market share and decrease our revenues and profits.
Our engagements with clients are typically singular in natureand do not necessarily provide for subsequent engagements.

V. Risks related to our contractual obligations
•

•

•

•

•
•

Our failure to complete fixed-price and fixed-timeframe
contracts, or transaction-based pricing contracts, withinbudget and on time, may negatively affect our profitability.
Our client contracts can typically be terminated withoutcause, which could negatively impact our revenues andprofitability.
Our client contracts are often conditional upon our
performance, which, if unsatisfactory, could result in lower
revenues than previously anticipated.
Some of our long-term client contracts containbenchmarking provisions which, if triggered, could result in
lower future revenues and profitability under the contract.
Our work with governmental agencies may expose us toadditional risks.
Our inability to execute contracts and / or amendments withclients on a timely basis can impact our revenues and profits,causing fluctuations in our reported results.

II. Risks related to the investments we make for our
growthVI. Risks related to our operations

•

•

•
•

•

Our business will suffer if we fail to anticipate and develop
new services and enhance existing services in order to keep
pace with rapid changes in technology and in the industries
on which we focus.
We may be unable to recoup investment costs incurred indeveloping our software products and platforms.
We may engage in acquisitions, strategic investments,
strategic partnerships or alliances or other ventures that may
or may not be successful.
Goodwill that we carry on our Balance Sheet could give rise
to significant impairment charges in the future.

•••

III. Risks related to our cost structure
•

•

•

•

•

Our expenses are difficult to predict and can varysignificantly from period to period, which could cause
fluctuations to our profitability.
Any inability to manage our growth could disrupt ourbusiness, reduce our profitability and adversely impact ourability to implement our growth strategy.
Wage pressures and the hiring of employees and subcontractors either outside or in India may prevent us fromsustaining some of our competitive advantage and may
reduce our profits.
We are investing substantial cash in creating physical andtechnological infrastructure, and our profitability could be
reduced if our business does not grow proportionately.
Currency fluctuations and changes in interest rates may
affect the results of our operations and yield on cash
balances.

IV. Risks related to our employee workforce••

Our success depends largely upon our highly skilled
technology professionals and our ability to hire, attract,
motivate, retain and train these personnel.
Our success depends in large part upon our Management
team and key personnel and our ability to attract and retain
them.

Infosys Integrated Annual Report 2022-23

•

•

•

•

•
•

Our transition to a hybrid working model may expose us tovarious risks.
Our reputation could be at risk and we may be liable to ourclients or to regulators for damages caused by inadvertent
disclosure of confidential information and sensitive data.
Our reputation could be at risk and we may be liable to ourclients for damages caused by cybersecurity incidents.
Our reputation may be impacted, and we may incur financial
liabilities if privacy breaches and incidents under General
Data Protection Regulation (GDPR) adopted by the EU orother data privacy regulations across the globe are attributed
to us or if we are not able to take necessary steps to reportsuch breaches and incidents to regulators and data subjects,
wherever applicable, within the stipulated time. Further, any
claim from our clients for losses suffered by them due toprivacy breaches caused by our employees may impact us
financially and affect our reputation.
We may be the subject of litigation which, if adversely
determined, could harm our business and impact reputation,
growth, profitability, and results of operations.
Our insurance coverage may not be adequate to protect us
against all potential losses to which we may be subject, which
could adversely affect our business.
The markets in which we operate are subject to the risk ofearthquakes, floods, tsunamis, storms, pandemics and othernatural and man-made disasters.
The safety of our employees, assets and infrastructure may
be affected by untoward incidents beyond our control,
impacting business continuity or reputation.
Terrorist attacks or a war could adversely affect our business,
results of operations and financial condition.
Climate change risks are increasingly manifesting in ourbusiness as strategic risks, physical risks and transitional(market and compliance) risks, which if not managed
adequately, can affect our operations, reputation andprofitability.

107Management’s discussion and analysis••

Our reputation, access to capital and longer-term financial
stability could be at risk if we are unable to meet our statedgoals under our Environmental, Social and Governance (ESG)
2030 vision.
Negative media coverage and public scrutiny may divert
the time and attention of our Board and Management andadversely affect our reputation and the prices of our equity
shares and American Depositary Shares (ADSs).

VII. Risks related to legislation and regulatorycompliance
•

•

•

•

•

•

•

•

•
•

•

We have experienced, and may continue to experience, ashortage in the supply of IT workers, which could accentuate
due to enactment of restrictive legislations and regulations
on immigration in certain geographies which would
adversely affect our business.
New and changing regulatory compliance, corporate
governance and public disclosure requirements add
uncertainty to our compliance policies and increase our costsof compliance.
The intellectual property laws of India may not give sufficient
protection to software and the related intellectual property
rights to the same extent as those in the United States. We
may be unsuccessful in protecting our intellectual property
rights. We may also be subject to third-party claims ofintellectual property infringement.
Our net income would decrease if the Government of India
reduces or withdraws tax benefits and other incentives it
provides to us or when our tax holidays expire, reduce or
terminate.
In the event that the Government of India or the governmentof another country changes its tax policies in a manner thatis adverse to us, our tax expense may materially increase,
reducing our profitability.
We operate in jurisdictions that impose transfer pricing andother tax-related regulations on us, and any failure to comply
could adversely affect our profitability.
Changes in the policies of the Government of India or
political instability may adversely affect economic conditionsin India generally, which could impact our business andprospects.
Attempts to fully address concerns of activist shareholders
may divert the time and attention of our Management andBoard of Directors and may impact the prices of our equity
shares and ADSs.
Our international expansion plans subject us to risks inherent
to doing business internationally.
Our ability to acquire companies organized outside India
may depend on the approval of the RBI and the Governmentof India and failure to obtain this approval could negatively
impact our business.
Indian laws limit our ability to raise capital outside India andmay limit the ability of others to acquire us, which could
prevent us from operating our business or entering into atransaction that is in the best interests of our shareholders.

VI. Internal control systems and their adequacy
The CEO and CFO certification provided in the CEO and CFO
Certification section of the Integrated Annual Report discusses
the adequacy of our internal control systems and procedures.

VII. Material developments in human resources /industrial relations, including number ofpeople employed
Our culture and reputation as a leader in consulting, technology,
outsourcing and next-generation digital services enable us toattract and retain some of the best talent.
Human resources management
At Infosys, we believe in amplifying human potential andcreating the next opportunity for people, businesses, andcommunities. For over four decades, we have been a people
company that understands the immense potential of technology.
As we look to the future, we recognize that the world is changing,
and we need to acknowledge our extraordinary potential to be aforce for good. Our people are at the center of this vision, and it isour constant endeavor to make Infosys a place where people canbe their best selves.
Our purpose is to inspire our people with meaningful work andpassionate teams, enabling them to find purpose and make anindelible impact. We believe that talent transformation is an
important focus area, and it begins with sensing employee needs
and responding with a value proposition that delivers meaning,
purpose, and value for them. We are committed to building
synergy between how we differentiate ourselves as a company
and deliver on the expectations of our employees.
Return to office and hybrid model of work
It has been over two years since we at Infosys transitioned tohybrid work, prioritizing safety and flexibility. This shift hasenabled us to be more responsive to customer demands, more
resilient to disruptions, and more productive in our work,
characterized by empathy and flexibility.
Today, our offices have integrated technology into their design todeliver an experience far beyond the traditional way of working.
At Infosys, our objective is to build and retain social capital
among employees to enhance collaboration and innovation
in a hybrid workplace. In addition, working from the office in a
hybrid model promotes ideation and self-learning, which fosters
self-development. Our approach to returning to work has beenbalanced, with a focus on flexibility, employee safety and wellbeing, and client commitments.

For more details on risk factors listed above and risks related to
ADSs, refer to our 20-F filing available at https://www.infosys.
com/investors/reports-filings/annual-report/annual-reports.html.
108

Infosys Integrated Annual Report 2022-23

Distinct-phased approach adopted in transitioning to hybrid work culture :We adopted a multi-pronged approach to enable the transformational hybrid work model – under three the pillars of work, workspace
and workforce. The remote-to-hybrid transition was facilitated centrally as well as at the individual unit and Development Center (DC)levels. Transition was enabled at the geo level aligning to the regional norms and policies of individual countries.

HybridWorkplace

WorkforceCampus | Collaboration | Distributed
Campus facilities aligned to hybrid
Collaboration spaces in DCs
Distributed workplace

Office | Flexible | Remote
Make work on campus attractive and convenient
Flexibility and voice of employees
Engaging new joiners
Digital experience

Purpose | Wellness | Experience
Articulate Purpose and EVP through managers and leaders
Physical, emotional and digital wellness
Human experience to build culture for the future
As we progress on a phased return to office, encouraging
employees to work on a hybrid model, we are focused on
the following aspects:
Communication and change management, DC operations andlogistics, employee support measures, employee DC transfer andsatellite offices, and client requirements.
Supporting employees in transition to hybrid work:
Infosys has taken a number of steps to support the transition
to a hybrid work model. These include surveying employees
to understand their preferences, developing a location-level
microsite, providing accommodation support, relaxing COVID
restrictions, creating user-friendly dashboards to track the
adoption of the hybrid work model, conducting in-person
freshers training , lateral induction, developing InfyMe Hotelingapplication, conducting employee well-being programs, opening
six satellite offices, establishing a 24*7 helpdesk, launching a
Talent Anywhere model, enhancing the employee experience,customizing the hybrid model to provide more flexibility toemployees, aligning systems, processes, and policies, supporting
employees and families for the booster dose vaccination,complying with the local laws and regulations, establishingeffective employee communication and collaboration,and enabling managers and leaders across locations to
successfully manage hybrid work.

Infosys Integrated Annual Report 2022-23

Initiatives to enhance our Employee Value Proposition
Our Employee Value Proposition aims to inspire and enable
our employees to find purpose and make an indelible impact
through meaningful work and passionate teams; ensure that
our employees continuously learn and grow in their careersand shape our collective future; and create opportunities forevery employee to navigate further, powered by our culture andpartnered by other employees with shared aspirations.
Employee careers and learning avenues:•••

Lex: Our in-house learning platform continues to be asignificant driver of talent development at Infosys. With
remote work firmly established, Lex has evolved to engage
employees through hybrid learning models.
Internal Marketplace: With reskilling gaining momentum,
more employees are acquiring new skills and capabilities.
Internal Marketplace serves as a vehicle to match employeeswith opportunities to provide job rotation in work areas of
their choice and capability.
Bridge: helps employees to develop new skills and shift to
new careers that typically require different qualifications.

109

Management’s discussion and analysis
•

•

•

•

•

•

•

•

•

•

110

Accelerate: This helps employees gain exposure to various
roles and practical experience with new skills throughinvolvement in short-term internal projects. Powered byan intelligent platform, it allows job creators to publish
independent job modules (with client approvals) that theirjob-seeking colleagues can volunteer to execute. Both job
creators and seekers are incentivized for work well done.
Learning and Career: This is a one-stop-portal for all
learning and career-related needs of employees with smart
integration with other Infosys internal systems like Lex to
guide employees on their learning journeys.
Performance management: The framework focuses on
deep engagement of key talent through regularconversations between managers and teams through checkins facilitated by a contemporary tool. It also strengthens
focus on development through career conversations andIntegrated Development Plans (IDPs).
Faster and predictable careers: We embarked on a journey
to enable business with a view on employees eligible forpromotion / progression in the next few quarters. This helped
business in engaging with key talent well ahead in theircareer journey and ensured that they experience accelerated
growth within the organization.
Digital Specialist: This has emerged as an aspirational
track for high performers who want to work with nichetechnologies in digital transformation projects. The career
track enables employees to see capability-driven growth thatis not dependent on tenure and augments a talent pool thatis continuously learning and generating value for us and ourclients.
Digital Quotient (DQ): This helps employees keep track of
their digital skills. Those with a higher Digital Quotient havegreater access to new opportunities and interesting projects.
Platinum Club: A niche experience created for our top
performers, it is an exclusive group of highly skilled and highperforming individuals. The program’s structure ensures
diverse career experiences for those who qualify.
Aspiration management: iAIM was launched as the newframework for capturing employee aspirations fiscal 2023.
The framework is centred around four key principles ofConnect, Converse, Converge and Close.
Manager and leadership development: through key
structured interventions as part of our Global Delivery Talenteffectiveness program has contributed tremendously to
the key learning and enablement of our leaders in Global
Delivery. A basket of offerings has been designed thatbrings together external sessions, internal leader facetime,
mentoring, cross-skilling, best sharing of practices andcollaboration across our various business segments and units.
SALESFLEX: The capability of our people and systems, whichis the backbone of our organization, has been completely
re-imagined and revamped through our multi-pronged
People Transformation Charter named SALESFLEX. Someof the key initiatives under SALESFLEX are HORIZON, asales-focused capability building intervention designed
exclusively for high-potential sales leaders, SYNERGY, a fourweek onboarding program for new sales employees; I AM
INFINITE, an exclusive, leadership initiative in partnershipwith Stanford Business School and Cambridge University

providing a curated and customized experiential learning
for the participants; ASSURED, a sales leadership program inpartnership with Stanford is an exclusive, leadership initiative
for leaders to strengthen their financial acumen; INSYNC
VIRTUAL COHORT, a three-week training module launched
for sales leaders, in partnership with ETA, that covers
instructor-led webinars, self-learning courses and expert-led
webinars; SKILLUP SALES CERTIFICATIONS, customized sales
certifications from Cornell University, customized to enable
our salesforce and prepare them for this next spurt of growth,and EMPOWER, INCLUSION HABIT JOURNEY, an external-led
bespoke program with immersive experience for leadersdriving the change.
Employee experience
We strive to create a world-class employee experience bydesigning consistent and best-in-class policies, processes,
programs, and systems, by focusing on creating ‘Experience by
Design’. We collect employee feedback to improve our offeringsand create positive experiences. We are committed to creating
memorable moments that matter and using technology todrive the right behavior among managers and teams. A few
initiatives in fiscal 2023:
•

•

•

•

•

•

•

Digitization: We have strengthened our people practices
by using technology and automation to improve workforce
efficiency, engagement, transformation, and innovation
People analytics: Analytics played a critical role in planninginterventions during the last financial year. Advanced
modeling tools, along with employee Pulse analytics andmanager dashboards, helped us improve our talent strategy
and retention. We also leveraged analytics effectively in themove to hybrid work.
InTap: is our smart sourcing and interview management
application to attract and manage candidates and provide
best-in-class experience along with an efficient hiring
process.
Launchpad: We expanded the coverage of Launchpad to ourentities and across the globe. This mobile app-based, selfservice platform provides new hires a guided flow, which isdigital, remote and seamless, during the onboarding process.
Infosys Meridian: enables a remote-first workplace thatmirrors the offline experience with its event management
platform and breakout sessions capabilities.
InfyMe: We continued to enrich our InfyMe app withmore services that enables teams to operate, connect andcollaborate easily and it is particularly effective in the hybrid
working model.
iEngage: We use iEngage to inform, inspire, and build ahappier workplace. It helps us drive vertical engagement
between employee and unit leadership. Managers can use
this to schedule engagement events, invite employees andtrack actions identified during such events.

Infosys Integrated Annual Report 2022-23

•Intelligent automation: We are making our systems smarterwith:
1. Nudges to managers and employees, which are driving
the right behavior and guiding managers to take the rightdecisions in matters like role change, retention etc.
2. Chatbots that are transforming query management, and3. Robotic Process Automation, which is being leveraged toreduce manual work of our teams.

•

Employee discount programs: Infosys’ employee-centric
initiatives, InfyGold+, offer exclusive discounts and deals on
various products and services, providing a valuable perk to
our employees and contributing to the Company’s efforts to
attract and retain top talent.

Rewards and recognition
•

•

•

•

•

Infosys RISE (Real. Instant. Specific. Excite): underlines theimportance of a single platform to meet all the company’s
reward and recognition needs. It allows managers to tailor
incentives that align with their team member’s unique skills
and personal circumstances. Accolades are recorded overtime to provide a comprehensive view of an employee’s
rewards while showcasing genuinely transformational
progress in recognition and value.
Infosys Stripes: A one-stop, gamified, point-based systemthat tracks and rewards employee achievements acrossfunctions and the organization through Infy Coins, Infy
Points, badges and certificates. It allows employees to see
their accomplishments, redeem their rewards and share theirachievements with colleagues.
Early Career and Rewards (ECR): This program for campus
hires at Infosys aims to provide visibility on career and pay
growth in the Company over three years since joining. The
program allows employees to see a milestone-based career
progression as well as pay increments during the program
duration and then move to a career stream of their choice.
Sales Excellence and Stellar Awards: Sales ExcellenceAwards provides a platform to recognize and reward thebest sales talent. Stellar Awards was instituted as a quarterly
recognition platform across each unit that will recognize
individuals who have gone the extra mile and madesignificant contributions during the quarter.
Awards for Excellence (AFE): The AFE remains our largest
rewards and recognition platform for employees. This year
marked its 28th anniversary, and we received about 1,000
nominations across geographies in over 20 categories.

Employee care and connect••

Employee engagement: We have a robust 5C (Connect,
Collaborate, Celebrate, Care, Culture) employee engagement
framework that drives us to create best-in-class employee
experiences and supports our people to stay motivated andalways deliver their best.
Manager Code: We have designed the Infosys manager
enablement framework to equip our leaders with thecapabilities to help their teams build technical, business andpeople skills along with a digital mindset to accelerate theirdevelopment journeys. Managers also have a behaviour
code that encourages them to adhere to seven fundamental
principles that shape a good manager at Infosys.

Infosys Integrated Annual Report 2022-23

•

•

•

Infosys Great Manager Program: Our flagship manager
enablement program, The Infosys Great Manager Program
guides managers through a structured learning path tobuild and strengthen four key competencies to build future
readiness – business acumen, digital mindset, leading people
and operational excellence. The program is self-paced andis entirely in the e-learning mode to achieve a wider andbroader reach among managers.
Employee well-being: At Infosys, over the years, employee
well-being has developed into a more evolved andsubstantial model with the help of our program HALE.
(Health Assessment and Lifestyle Enrichment). Our wellness
programs stand strong on the four pillars of physical wellbeing, social well-being, emotional well-being, and safety.
Power Teams include short and specific team intervention
modules with project as the nucleus. Apart from being an
excellent way to engage with employees, Power Teams aims
to leverage the strengths of everyone to maximize project
output.

Creating a positive work environment•

Culture and values: The organization culture, driven by ourcore values (C-LIFE), is one of the main levers that drive ourbusiness. At Infosys, we work to build and sustain an inclusive,
non-discriminatory and equal opportunity workplace. Our
ESG ambition aims to strengthening diversity, equity andinclusion in the Company and achieving 45% representation
for women in our workforce by 2030. Our workplace policies
and investments focus on learning and development, andspecific interventions for women to navigating their personal
and professional lives.
– Orbit Next: A year-long program for our women managers
in India. It aims at building capabilities through reskillingand honing leadership skills to prepare them for next-levelroles.
– Restart with Infosys: A unique intervention werelaunched to hire women after career breaks. The
program offers flexible working formats, training, skillbuilding, and intense mentoring to give women the
support and confidence they need to return to theircareers.
– Women in Tech (TechCohere): This year, over 50 sessions
and panel discussions were conducted by women
technologists. 11 white papers and 37 POVs authored by
women technologists were published.
– Employee Resource Groups (ERGs): To strengthen
inclusion and belonging, we now have more than 12,000
employees in various ERGs.

111

Management’s discussion and analysis
Awards:ASHI•

The Company’s assurance to its employees towards providing
a harassment-free workplace is reflected in our key initiative,
ASHI (Anti-Sexual Harassment Initiative). As per the Act in India,
the Company has constituted Internal Committees (IC) in all thedevelopment centers of the Company in India, for redressal ofsexual harassment matters reported by women employees. We
also have a strong governance mechanism in the form of GRB(Grievance Redressal Body), to define, interpret and implement
the ASHI initiative and is accountable for administering thepolicy centrally. GRB consists of external members, internalsenior members, and the Investigative Council. Here, we follow
a gender-neutral approach in redressal of all such complaints.
Upon receiving a sexual harassment complaint, an immediateacknowledgment is sent to the complainant and the complainant
is contacted within 24 hours, before it is taken up for a formal
redressal process in line with the POSH Act and the Company’s
policy on anti-harassment. We have stringent internal timelinesof 45 days for closure of such concerns. The reports on ASHI
grievances can be shared to GRB@infosys.com and India
employees can log reports on the ASHI webapp or InfyMe
mobile application. Complaints received are classified andappropriate disciplinary action is taken ranging from a warningto termination of employment, as the case may be.

•
•

•

•

Infosys was recognized for the second consecutive year for
Excellence in HR Analytics at SHRM HR Excellence Awards
HALE won the Best Health and Wellness Program 2023 byIndia Today GroupIam the Future Women in Leadership Program by the
Infosys Leadership Institute (ILI) won the Women Icons Asia
D&I Champions Award in the category of Advancementof Women in 2022. This award celebrates and honors theaccomplishments of the organization that has programs andinitiatives to advance women in their workplace.
IamtheFuture Women in Leadership Program by ILI won the
Brandon Hall Gold Award for DEI in 2022. This was awarded tothe program in recognition of being an excellent program in
advancing development of women in leadership roles.
ILI won the Chief Learning Organization’s Learning Elite Silver
Organization Award in 2022, with one of the key contributorsof this recognition being the impact of women in leadership
through the IamtheFuture program.

NAM awards and recognition:••

Diversity Inc. Top 50 Companies for Diversity placed Infosys
as “Noteworthy” Company for Diversity in 2021 and 2022.
Infosys scored 100% on the Corporate Equality Index Score(CEI) in 2022 for LGBTQ+ inclusion – up from 95% in 2021.

Resolution hubs
Infosys is committed to providing a safe and positive work
environment. In keeping with this philosophy, the organization
envisages an open-door policy. Employees also have accessto several forums where they can highlight matters orconcerns faced at the workplace. This is achieved through awell-established and robust grievance resolution mechanism
comprising resolution hubs. Resolution hubs adhere to theprinciples of natural justice, confidentiality, sensitivity, nonretaliation and fairness, while addressing concerns. The concerns
are handled with a lot of sensitivity yet ensuring timely action
and closure. A detailed investigation process ensures fairness
for all involved, with an opportunity to present facts andany material evidence.
HEAR
Infosys has a robust grievance redressal forum called HEAR
(Hearing Employees And Resolving) fostering healthy employee
relations and a positive work environment by giving our
employees a neutral platform ‘to be heard’ and in building the‘speak up culture’. An employee can raise a complaint on the
HEAR webapp or InfyMe mobile application or write to
HEAR@infosys.com. HEAR addresses employee concerns in a
structured and layered manner with appellate forums for any
appeals. All employees have access to the grievance redressal
process. We also conduct data analytics and studies to arriveat the best possible preventive mechanisms. A summary andthe trends of workplace grievances are presented to the Audit
Committee of the Board every quarter.

112

Extending the initiative to contract staff
Our commitment to a positive and safe working environment is
not restricted only to our employees, but also third parties, whoprovide services in our campuses. We conduct refresher sessions
for such third-party employees to reinforce the message. Thesesessions are covered in nine vernacular languages currently.
Emergency / safety cards with important contact numbers
are also handed over to all Infosys employees and employeesof such third parties.
Whistleblower Policy
We framed the Whistleblower Policy to enable stakeholders
to raise concerns regarding any potential violations,involving financial irregularities / breach of Infosys’ policies
or applicable laws – easily and without any fear of retaliation.
The complaints received under the ambit of this policy arereviewed independently, while ensuring anonymity andconfidentiality of the reporting.

Human rights
Infosys is a signatory to the UNGC and supports the protectionand elevation of human rights in accordance with the UN
Universal Declaration of Human Rights, the UN Guiding Principles
on Business and Human Rights, and the International Labor
Organization’s Declaration on Fundamental Principles and Rights
at Work (the ILO Declaration). Our Human Rights Statement
provides a broad framework to ensure that all employees aretreated with respect and dignity and ensure that we do notcondone human rights violations or abuses. Our Supplier Code of
Conduct helps us manage and address this important aspect ofsustainable business in our supply chains.

Infosys Integrated Annual Report 2022-23

Our salient human rights issues are:
1. Workplace diversity: A key tenet of the Code of Conduct
and Ethics is respecting each other through creating an equal
opportunity workplace, ensuring equal pay for equal work,
free of discrimination and harassment.
2. Positive work environment (Anti discrimination &harassment): The organization envisages an open-door
policy. This is achieved through a well-established and robust
grievance resolution mechanism comprising resolution hubs.
3. Freedom of association: We respect the rights of ouremployees to associate or not associate through internal
employee resource groups and seek representation, tobargain or not bargain collectively, in accordance with local
laws.
4. Health and safety: As a prerequisite for conducting business
responsibly. Ozone, Infosys’ Health, Safety and Environmental
Management System (HSEMS), has evolved into a robust
management system guided by requirements from multiple
stakeholders, including clients, internal customers, vendor
partners, law enforcement and regulatory bodies, and thecommunities in which we operate.
5. Data privacy: With the Data Privacy Office (DPO) directly
reporting to the Board, Infosys ensures there is no conflict ofinterest in the DPO playing an effective role to ensure privacyof our employees, candidates, visitors, customers, and otherstakeholders, according to applicable data privacy regulations
across the globe, including but not limited to GDPR, CCPA,
LGPD, both as a data controller and processor.
6. Sustainable development: In 2020, we launched our ESG
Vision 2030 to shape and share solutions that serve thedevelopment of businesses and communities.
Recruitment
As of March 31, 2023, the Group employed 3,43,234 employees,of which 3,24,816 were professionals involved in service delivery
to the clients, including trainees.
We have built our global talent pool by recruiting freshers
from premier universities, colleges and institutes globally. We
constantly attract and hire developers, architects, technicalleaders and project managers in areas of digital and cloud,and transformation. We have built robust relationships with
top institutions in the country and recruit students who haveconsistently shown high levels of achievement. We havecontinued upscaling our InfyTQ platform, which brings the bestof our Mysuru training to the hands of the learners across thecountry. This has sustained to amplify the learning experienceof students who also undergo assessments to get the coveted
Infosys Certification. We also have been globally recognized for
our innovation in recruitment for our HackWithInfy, an online
coding contest, which also helps us attract the best of coders
into our organization.
We also recruit students from campuses outside India, including
but not limited to the US, UK, Australia, Singapore, Japan,
Germany, Canada, Mexico, Mauritius and China. We rely on arigorous selection process, involving evaluation of mathematicaland logical aptitude, coding ability and in-depth interviews, toidentify the best applicants. This selection process is continuallyassessed and refined based upon multiple factors, including
Infosys Integrated Annual Report 2022-23

performance-tracking of past recruits. We have continued to
conduct interviews virtually across the globe and the teamalso enhanced the in-house applicant tracking system, which iscurrently being used for hiring in India and China.
During fiscal 2023, we received 53,42,299 employment
applications, interviewed 3,89,183 applicants and extended
offers of employment to 1,14,374 applicants. These statistics do
not include our subsidiaries. We added 29,219 new employees,
net of attrition, during fiscal 2023.
Education, training and assessment (ETA)
Infosys continues to make investments in developing humanpotential for the organization, and the world at large. The
Foundation Training Program, anchored across India, Mexico,
the US, the UK, Canada, Germany, Australia, Singapore, andJapan, continues to enable newly onboarded entry-level hires
to transform into corporate professionals. Comprising nearly
50 technology streams, the curriculum has kept pace with the
dynamic business requirements and the preferred pedagogicalapproach of the current generation of talent. The curriculum
continues to be current as courses on generative AI and prompt
engineering have been introduced into the foundation program
to introduce the freshers to the latest technologies. During
the COVID pandemic, the foundation training was conductedvirtually, with trainings being conducted in online mode.
However, keeping pace with the times, the training is back to inperson classroom training.
Our Continuous Education Program is aimed at reskilling /upskilling our existing employees with the twin objectivesof increasing fulfillment of skilled talents in client projects
and enriching the expertise of our global workforce in nextgeneration digital technologies and methodologies. We provide
online self-learning, instructor-led virtual training opportunities
along with in-person classroom training opportunities to ouremployees. We offer Bridge programs that help employeeswith training and internship opportunities to switch
to a new career field.
Lex, our in-house learning platform, offers over 14,800 curated
courses, which includes over 10,000+ courses procured fromvendor partners both for enterprise consumption and niche
communities who have specific content requirements. About
50,000 employees use Lex on weekdays with an average learning
time of about 35-40 minutes, and 12,000 employees use Lex on
weekends with an average learning time of about 45-50 minutes.
The learning efforts of our employees helped us get laudable
external accolades from Brandon Hall, ATD Best, Training
Apex and NASSCOM who recognized Education, Training andAssessment (ETA) as the Cloud Innovator of the Year.
Infosys Wingspan, our configurable talent transformation
platform for clients, is being used by several global organizations.
Infosys Wingspan has also been leveraged for the ESG initiative,
Infosys Springboard. In alignment with ESG Vision 2030, Infosys
Springboard aims to empower over 10 million people withdigital and life skills by 2025. This program is led by a dedicatedteam of experts collaborating globally with curriculum partners,
non-profits, and a global network of leading educational
institutions. About 12,000+ learning courses are available
and about 5.3 million learners across India have registered on
113Management’s discussion and analysis
Infosys Springboard. The platform is available in English and all
major Indian regional languages, including Urdu and Sanskrit.
The Infosys Springboard team is working with state education
departments in 10 states, one of which has leveraged this toenable more than one lakh teachers in the regional language.

VIII. Other details
1. Quality
The Quality function at Infosys, in line with the organization’s
vision and strategy of ‘Navigate the Next’, has threestrategic imperatives:•••

Differentiate Infosys’ services through superior performanceand quality.
Optimize Infosys’ client projects as well as internal functions
for greater efficiency and agility.
De-risk Infosys’ operations by ensuring delivery excellence,compliance and sustainability.

Our Quality team has been driving the organization-wide agiletransformation to scale our capabilities for agile digital in tune
with the Company strategy, and we have been rated by HfS as
No.1 among all agile service providers.
Today, clients are striving to achieve business value at speed
from their digital transformations. A key requirement for this is toadopt a product-centric approach, capabilities and mindset. Last
year, we launched our Product Centric Value Delivery approachto help clients do exactly that, through a holistic transformationin the ways of working. The Quality team also consulted withseveral large clients and helped them drive their agile and
DevOps-driven transformation, shift from project to productway of working and overall workplace transformation. drive theiragile, DevOps, project to product ways of working shift, andoverall workplace transformation.
Quality has been leading the way in driving lean and automationin the organization to enhance productivity and quality, which
has resulted in large optimization in projects. It deployedrobust frameworks, tools and platforms across service lines
in a collaborative manner to drive hyper-productivity andengineering excellence. Last year, the Quality team created aholistic automation maturity model to help navigate projects
towards increasing automation levels, from point tools towards
cognitive and autonomous operations.
The Quality team worked with cross-functional teams to drive
enterprise agility by simplifying many enterprise processes, thus
reducing cost, improving agility in operations, and enhancing
employee experience.
Quality continues to drive best practices and sustenancethrough structured audits and assessment frameworks, focusing
on de-risking the organization, with augmented coverage ofservices, centers and subsidiaries. We continue to comply withinternational management system standards and models, viz.,
ISO 9001, ISO 27001, ISO 14001, ISO 45001, ISO 22 301, ISO 20000,
AS 9100 and ISO 27701.
Infosys is the first IT company to comply with, and get assessed at
the enterprise level on SSAE18-SOC 3 report attestation. Infosys
continued to comply with and get assessed at the enterpriselevel for SSAE 18 SOC 2 type II & ISAE 3402 / SSAE 18 SOC 1 typeII, including cloud platforms, and has received an independent
auditors’ assurance compliance report.

2. Infosys Center for Emerging Technology Solutions (iCETS)

114

Infosys Integrated Annual Report 2022-23

iCETS is the emerging technology solution incubation partner for
Infosys’ clients and units. It provides next-generation platforms
and innovation-as-a-service to help future-proof enterprisebusinesses. The aim is to envision and evolve New Emerging
eXploratory Technology (NEXT) solutions for our clients, bothorganically (driving innovation bottom-up across Infosys),and inorganically, via the IIN (partnering with hyperscalers,
startups, universities, and large product players). iCETS
incubates emerging technologies under different Centers of
Excellence (CoEs), such as Generative AI, Privacy & Accessibility,
Cybersecurity, Software Engineering, Data Management,
Quantum Computing, Metaverse, Hyperscalers and so on.
These centers focus on building capabilities, developing
thought leadership, and offering early client validation via
Living Labs, IP development, including building of platforms,
driving a significant part of innovation for our clients andmonetization for Infosys.
One of the key CoEs Infosys unveiled in the past few months
is the generative AI center. Generative AI is an emerging
technology space that is likely to transform wide sections ofbusiness and technology applications. Given the significant
impact it is expected to have, Infosys has been incubating
capabilities and IP around Generative Pre-trained Transformers(GPTs). In this context, we are collaborating with the hyperscalers
like Google, Microsoft, and AWS, as well as working with opensource products, to experiment on transformations across code,
text, images, videos, voice, and avatars. We have developed
generative AI workbenches, sandboxes and applications acrossmultiple domains. iCETS is also helping drive Infosys to become
an AI-first organization, with the adoption of generative AI
capabilities to transform the Infosys technology landscape.
We plan to achieve this by building small transformer models,trained on Infosys data, to drive contextual solutions. iCETS isleveraging its learning to ensure that the clients benefit from it
while creating their generative AI strategy and incubation plans.
Among numerous client experimentations, we are working
with leading global banks, fashion retailers, and insurance
providers, among others.
iCETS enables enterprises to realize their Live Enterprise visionby developing and deploying next-generation offerings, suchas LEAP, Cortex, DigiTran, iEDPS, etc. iCETS is also incubating
several domain platforms like the Energy-as-a-Service (EaaS) in
collaboration with our energy unit. iCETS platforms are designed
to be Platform‑as‑a-Service (PaaS) offerings with IP / patentled differentiation and now have AI-first capabilities built in todifferentiated Infosys services while accelerating innovations
for Infosys clients.
Infosys Living Labs brings the entire innovation ecosystem
together to help clients meet their innovation-at-scale needs
on multiple dimensions. Here, iCETS proactively expands
the services and capabilities to meet growing and dynamic
innovation needs of clients with the aid of joint innovation
centers, experience centers, IIN, industry living labs, complexity
studio, and more. We also monitor and publish Horizon 3
technologies and business trends and assist our clients to foresee
disruptions with ‘Listening-Post-as-a-Service’ (LPaaS).
iCETS’ evolving partner ecosystem, including startups,
universities and hyperscalers, plays a critical role in the increased
velocity of ideas and solutions for their clients. We now approach
Infosys Integrated Annual Report 2022-23

clients with joint living labs, for example, AWS-Infosys living labs
and Google-Infosys living labs.
To bring outside-in innovation to clients, the Infosys Innovation
Network (IIN) is constantly building well-orchestrated
partnerships with a curated list of startups, universities, andhyperscalers. These partnerships strive to bring the best of
emerging-technology innovations from across the globe to
Infosys clients. The IIN program aims to create lighthousewins for clients to experiment and implement the art of thepossible leveraging our global innovation ecosystem. Infosys
de-risks client adoption of technology innovations andsolutions by carefully curating these startups, finding the right
fit and implementing early pilots. Infosys has also establishedpartnerships with key client Corporate Venture Capital (CVC)
firms to bring their portfolio startups onto the Infosys network.
Over the past 24 months, we have engaged with numerous
startups, universities and hyperscalers across geographies suchas the US, Finland, Israel, and India, collaborating in spaces
like AI, fintech, cloud, cybersecurity, InsurTech, HealthTech,and more, and in the process, positively impacting over 400
client opportunities.

3. Branding
Brand Infosys is a key intangible asset for the Company. It isnurtured by over 3,40,000 of our purpose-driven people seeking
to amplify human potential and create the next opportunity
for people, businesses, and communities. The brand serves toposition Infosys as the next-generation digital services partner ofchoice for enterprises navigating their transformation poweredby the cloud. It is built around the premise that the experience
we have gained, for four decades, in managing the systems
and workings of global enterprises enables us uniquely to benavigators for our clients. We do it by enabling them with an
AI-powered core. We also empower the business with agile
digital at scale to deliver unprecedented levels of performanceand customer delight. Our always-on learning foundation drives
their continuous improvement through building and transferring
digital skills, expertise and ideas from our innovation ecosystem.
Our localization investments in talent and digital centers help
accelerate the business transformation agenda. For over four
decades, we have been deeply committed to being a wellgoverned, environmentally sustainable partner for our clientswhere diverse talent, in an inclusive workplace, helps themnavigate their next.
Our marketing reach extends globally through digital-first multichannel campaigns. As the digital innovation partner for theAustralian Open, Roland-Garros, ATP and The International Tennis
Hall of Fame, we help showcase how brand Infosys is reimagining
the tennis ecosystem for a billion fans globally, leveraging data,
insights and digital experiences. We are also the official digital
innovation partner of Madison Square Garden (MSG) properties
including the New York Knicks, New York Rangers and the MSG
Arena. Our strategic partnerships with Dow Jones, Bloomberg
Media, The Economist Group and Financial Times further
accentuate this position. We participate in premier business andindustry events around the world, while also organizing our own
signature events and CXO roundtables. Confluence, our flagshipclient event series across the US, Europe and APAC, is rated highly
by our clients and industry partners.

115

Management’s discussion and analysis
4. Client base

6. Infosys Knowledge Institute

Our client-centric approach continues to bring us high levelsof client satisfaction. We, along with our subsidiaries, added
458 new clients, including a substantial number of large global
corporations. Our total client base at the end of the year stood
at 1,872. The client segmentation, based on the last 12 months’
revenue for the current and previous years, on a consolidated
basis, is as follows:

The Infosys Knowledge Institute (IKI) drives new engagementwith Infosys prospects and clients by harnessing the intellectual
capital of our employees, partners, and academics to develop
and share a deeper understanding of the business impact oftechnology and market trends. Combining surveys, quantitative
analysis, expert interviews, client webinars and events, IKI creates
perspectives, benchmarks, and diagnostic tools on trends acrossindustries and functions. Current research themes include
sustainability, artificial intelligence, data analytics, cloud, digitalcommerce, agile methods, metaverse and cybersecurity. Major
works include the Radar maturity assessments, TechCompass
series, Practical Sustainability and Live Enterprise books andthe Tech Navigator for future trends. IKI also publishes regularly
in leading business and technology media, and conducts
roundtables and seminars. For more information, go tohttps://infosys.com/iki.

Clients

2023

2022

100 million dollar +40

38

50 million dollar +75

64

10 million dollar +

298

275

1 million dollar +

922

853

5. Infosys Leadership Institute
In fiscal 2023, the Infosys Leadership Institute (ILI) was recognizedwith five prestigious international awards, a testament to theimpact of leadership programs on the strategic imperativesof the organization. These include the Chief Learning Officer
Learning Elite award and Brandon Hall awards for overall
leadership development strategy and execution, IamtheFuture
women in leadership program, and the Culture Transformation
program. The Constellation Program continued its focus ondeveloping high-potential leaders towards strengthening
the organizational successor pool. 13 strategic projects anda 10-month leadership certification program with Harvard
Business School (HBS) were the cornerstones of development ofConstellation leaders.
Since its inception in 2021, nearly 450 women leaders as part of
the IamtheFuture program have successfully completed various
phases of their learning journey towards earning the Infosys
Leadership Institute-Stanford GSB certification. The year saw
the second cohort of women leaders globally completing the
program while the first cohort completed the advanced versionof the program. IamtheFuture continues to drive individualand organization impact through a combination of pertinent
development-and-leadership-driven talent actions for womenleaders. ILI also continued its focus on bringing contemporary
and impactful programs for all the senior leaders in theorganization. This included a highly-appreciated program on
financial leadership with Stanford GSB, which was contextualized
by senior finance leaders at Infosys. There was a significant
increase in the participation, with 7,000+ leadership learningdays across 125 programs. About 75% of all senior leadersparticipated in at least one Ivy League program, with more than
95% completing at least one leadership program during the year.

116

7. ESG vision and ambitions
In October 2020, we launched our ESG Vision 2030 to “shapeand share solutions that serve the development of businesses
and communities”. Today, our 2030 vision reflects how ESG
will continue to be integral to Infosys’ sustainable businessperformance. We will continue to be carbon-neutral acrossScope 1, 2 and 3 emissions every year. We will expand reskilling
initiatives to empower more than 10 million people with digitalskills and more than 80 million with Tech for Good programsin e-governance, healthcare and education. We commit tonurturing greater inclusivity and strengthening our genderdiverse workforce with at least 45% women employees.
We will grow our stakeholder focus and bring the interests ofour stakeholders to the fore through an empowered, diverse
and inclusive Board. We will further strengthen data privacy andinformation security standards across global operations.
For more information about our ESG initiatives, read our ESG
Vision 2030 document at https://www.infosys.com/content/
dam/infosys-web/en/about/corporate-responsibility/esgvision-2030/index.html.

Infosys Integrated Annual Report 2022-23

Statutory reports

Corporate governance report
Our corporate governance philosophy
Our corporate governance is a reflection of our value system,encompassing our culture, policies, and relationships with our
stakeholders. Integrity and transparency are key to our corporate
governance practices and performance, and ensure that we gain
and retain the trust of our stakeholders at all times.
Corporate governance is an ethically-driven businessprocess that is committed to values aimed at enhancing anorganization’s capacity to create wealth. This is ensured bytaking ethical business decisions and conducting business witha firm commitment to values, while meeting stakeholders’expectations. At Infosys, it is imperative that our Company affairs
are managed in a fair and transparent manner. This is vital to gain
and retain the trust of our stakeholders.
Ensuring the basis for aneffective corporate governance framework

We are committed to defining, following and practicing
the highest level of corporate governance across all ourbusiness functions.
Our corporate governance is a statement of the values westand by as we conduct our business and engage with our
stakeholders. Our Company has been a leader in adoptinginternationally-recognized corporate governance guidelines andhas set the highest standards in abiding by them.
Our governance rests on our core value system of C-LIFE (Client
Value, Leadership by Example, Integrity and transparency,
Fairness and Excellence) and is guided by the OECD (Organization
for Economic Co-operation and Development) principles. Our
corporate governance framework thus encompasses:

1

The rights and equitable
treatment of shareholders andkey ownership functions

2

Institutional investors, stock markets
and other intermediaries

3

G20/OECD
Principles ofCorporate
Governance4

The role of stakeholders
in corporate governance5

Disclosure and transparency

6

The responsibilities of the board

Infosys values: C-LIFE

Clientvalue

Leadershipby example

Integrity andtransparency

Fairness

Excellence

Responsible leadership
Board as a trustee
Safeguard the shareholder’s capitalas trustee, and not as its owner

Lead by example by ensuring independence of the Boardand effectiveness of the Management

Legal compliance
Satisfy both the spirit and the letter ofthe law in all our actions and disclosures

Effective corporate governance
Build simple and transparent processes
driven by business needs of all stakeholders

Fairness and excellence
Be objective and ethical, and deliver the best
to earn trust and respect from our stakeholders

Integrity and
Relationshiptransparency & with stakeholders
Ensure transparency and maintain a high level of integrity
Communicate frequently with stakeholders, including
clients, employees, shareholders and stock markets

Infosys corporate governance framework
Our corporate governance is reinforced through the Company’s Code of Conduct and Ethics, corporate governance guidelines andcommittee charters. Our Board and Management processes, audits and internal control systems reflect the principles of our corporate
governance framework. This report gives a comprehensive overview of how our governance adheres to the seven pillars of ourgovernance framework.
Infosys Integrated Annual Report 2022-23

117

Corporate governance report

Board as a trustee

Corporate governance guidelines

The Board
recognizes
its primary role oftrusteeship of shareholder
capital. As a trustee, it
strives to ensure excellence
and integrity in setting
world-class corporate
governancestandards.

Strong corporate governance is the bedrockof our sustained performance and hashelped us gain the trust and respect of all our
stakeholders. The enhancement of these corporate
governance standards, through periodic evaluation andchange, is one of the most important aspects of ensuring value
creation for our stakeholders.

Our corporate governance follows the guidelines establishedby the Board of the Company. These guidelines provide a
structure within which directors and the Management caneffectively pursue the Company’s objectives for the benefitof its stakeholders. These are framed in conjunction with theCompany’s Memorandum & Articles of Association, the chartersof the committees of the Board and applicable laws / regulations/ guidelines in force in India, the US and other jurisdictions, asapplicable. The guidelines can be accessed on our website, at
https://www.infosys.com/investors/corporate-governance/
Documents/corporate-governance-guidelines.pdf.

Role of the Board of Directors
The primary role of the Board is that of trusteeship – to protect
and enhance shareholder value. As trustees, the Board has afiduciary responsibility to ensure that the Company has clear
goals aligned to shareholder value and its growth. Further, theBoard is also responsible for:•

Exercising appropriate control to ensure that the Company
is managed efficiently to fulfill stakeholders’ aspirations andsocietal expectations.

•Monitoring the effectiveness of the Company’s governancepractices and making changes as necessary.

•

Providing strategic guidance to the Company and ensuring
effective monitoring of the Management.

•

Exercising independent judgment on corporate affairs.

•

Assigning a sufficient number of non-executive members of
the Board to tasks where there is a potential for conflict ofinterest, to exercise independent judgment.

•

Reviewing and guiding corporate strategy, major plansof action, risk policy, annual budgets and business plans,setting performance objectives, monitoring implementationand corporate performance, and overseeing major capital
expenditures, acquisitions and divestments.

118

Independent directors

The Companies Act, 2013 and theSEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“the Listing
Regulations”) as amended, define an ‘independent
director’ as a person who, including his / her relatives, is or
was not a promoter or employee or key managerial personnelof the company or its subsidiaries. Further, the person and his /her relatives should not have a material pecuniary relationshipor transactions with the company or its subsidiaries, during
the three immediate preceding financial years or during thecurrent financial year, apart from receiving remuneration as anindependent director.
We abide by these definitions of an independent director, in
addition to the definitions of an independent director as laid
down in the New York Stock Exchange (NYSE) listed company
manual, the Sarbanes-Oxley Act, and US securities laws by virtueof our listing on the NYSE in the US.
Based on the disclosures received from all independent
directors and in the opinion of the Board, the independent
directors fulfill the conditions specified in the Companies Act,
2013, the Listing Regulations, NYSE listing manual and are
independent of the Management.

Infosys Integrated Annual Report 2022-23

Board composition

Every Board member can suggest the inclusion of additional
items in the agenda.

The Company recognizes and embraces the importance ofa diverse Board in its success. We believe that a truly diverse
The Board meets at least once a quarter to review the quarterly
Board will leverage differences in thought, perspective, regional
results and other items on the agenda. Additional meetingsand industry experience, cultural andare held when necessary. Independent
geographical background, age, ethnicity,
directors are expected to attend at least
Size and composition
race, gender, knowledge, skills and otherfour quarterly Board meetings and theof the Board
domains, which will ensure that Infosys
Annual General Meeting (AGM). However,retains its competitive advantage.
with the Board being represented by
The composition of our Board
independent directors from various parts
as on March 31, 2023
As on March 31, 2023, the Board comprisedof the world, it may not be possible foreight members, consisting of a nonall of them to be physically present at
executive and non-independent Chairman,
Non-executive andExecutive
all meetings. Hence, we provide video /Chief Executive Officer & Managing Director
non-independent director
director
teleconferencing facilities to enable their(CEO & MD), and six independent directors.
Nandan M. Nilekani
Salil Parekh
participation. Committees of the Board
The profiles of the Board members
usually meet the day before the Board
encompassing details of nationality, age,meeting, or whenever the need arises fordate of (re)appointment, tenure on the25%transacting business.
Board, term-ending date, shareholding,
The Board members are expected
Board memberships in Indian listed
to rigorously prepare for, attend andcompanies, committee details as per
participate in Board and applicable
Regulation 26 of the Listing Regulations
Independent directors
committee meetings. Each member
and the details of core expertise/
D. Sundaram
Bobby Parikh
is expected to ensure their othercompetency of each director is provided
MichaelGibbs
ChitraNayak
commitments do not materially interfere
under Infosys Board of Directors section inwith their responsibilities with us.
Uri
LevineGovindIyer
the Integrated Annual Report. There are nointer-se relationships between our Board
members. The Company does not have any
material pecuniary relationship with any of
the non-executive directors. Further, during
the year, the Company has not provided
any loans or advances to firms/companies
in which directors are interested.
The Board has six committees – Audit
Committee, Nomination and Remuneration
Committee, Stakeholders RelationshipCommittee, Risk Management Committee,
Corporate Social Responsibility (CSR)
Committee and ESG Committee. All
committees comprise only independent
directors, one of whom is chosen as
the chairperson of the committee. The
Company also has a Cybersecurity Risk Subcommittee under the Risk Management
Committee. The Sub-committee comprises
only independent directors.

75%
IndianThe tentative dates of Board meetings
for the next fiscal are decided in advanceand published in the Integrated Annual
Report. The Chairman and the Company
Secretary, in consultation with the CEO& MD, propose the agenda for eachmeeting, along with explanatory notes, anddistribute these in advance to the directors.

Infosys Integrated Annual Report 2022-23

Foreign national

62.5%

37.5%

Men

Women

87.5%

12.5%

Tenure analysis of the Board
as on March 31, 2023
Average tenure (in years)
5.6

Board meetings
Scheduling and selection of agenda
items for Board meetings

Meeting of independent directors

5.2

Non-executive andnon-independent
director

Executive
director

3.6

3.1

Independent
directors

The Board

Average tenure (in years)< 2 years

2-4 years>4 years

For the Board to exercise free and fairjudgment in all matters related to thefunctioning of the Company as well as theBoard, it is important for the independent
directors to have meetings without thepresence of the executive management.
Schedule IV of the Companies Act, 2013
and the Rules thereunder mandate thatthe independent directors of the Company
shall hold at least one meeting in afinancial year, without the attendance of
non-independent directors and membersof the Management. Even before theCompanies Act, 2013 came into effect,
our Board’s process mandated periodic
meetings attended exclusively by the
independent directors.
During the year, the independent directors
met four times. At such meetings, theindependent directors discuss, among
other matters, the performance of theCompany and risks faced by it, the flowof information to the Board, competition,
strategy, leadership strengths andweaknesses, governance, compliance,
Board movements, succession planning,
human resources matters and theperformance of the executive members of
the Board, and the Chairman.

119Corporate governance report

Responsible leadershipResponsibilities of the Board
leadership

Leading by example
is a key tenet ofcorporate governanceat Infosys. Both the Boardand the Management work
together to set the highest
standards of responsible
leadership.

We believe that an active, well-informed,
diversified and independent board is necessary
to ensure the highest standards of corporate
governance. At Infosys, the Board is at the core of ourcorporate governance practice. The Board oversees theManagement’s functions and protects the long-term interestsof our stakeholders.
The responsibilities and authority of the Chairman, the CEO & MD
and the lead independent director are as follows:

Chairman
The Company has separated the roles of Chairman and the CEO& MD to create a more balanced governance structure. The
Chairman leads the Board, and is responsible for fostering andpromoting the integrity of the Board while nurturing a culture inwhich the Board works harmoniously for the long-term benefitof the Company and all its stakeholders. He presides over all
meetings of the Board and of the shareholders of the Company.
The Chairman takes a lead role in managing the Board andfacilitates effective communication among directors. He is
responsible for overseeing matters pertaining to governance,
including the organization, composition and effectivenessof the Board and its committees, and the performance ofindividual directors.
The Chairman actively works with the Nomination andRemuneration Committee to plan the composition of theBoard and Board committees, induct directors to the Board,plan for director succession, participate effectively in the Board
evaluation process and meet with individual directors to provide
constructive feedback and advice.

120

CEO & MD

The CEO & MD is responsible for executing
corporate strategy in consultation with theBoard, as well as for brand equity, planning,building external contacts and all matters related
to the management of the Company. He is responsible
for achieving annual and long-term business targets. The CEO& MD also monitors the external and internal competitive
landscape, and new industry developments and standards,
identifies opportunities for expansion and acquisition, andbuilds relationships with customers and markets to enhanceshareholder value and implementing the organization’s vision,
mission, and overall direction.
The CEO & MD acts as a link between the Board and theManagement and is also responsible for leading and evaluating
the work of other executive leaders.

Lead Independent Director
The lead independent director was appointed by the Board
to ensure robust independent leadership of the Board. The
general authority and responsibilities of the lead independent
director are decided by the group of independent directors. The
lead independent director also performs additional duties as
determined by the Board.
The lead independent director provides leadership to the
independent directors, liaises on behalf of the independent
directors and ensures the Board’s effectiveness in maintaining
high-quality governance of the organization and effectivefunctioning of the Board.

Infosys Integrated Annual Report 2022-23

Key Board qualifications, expertise and attributes
The table below summarizes the key qualifications, skills, and attributes which are taken into consideration while nominating candidates
to serve on the Board.

Financial
Leadership of a financial firm or
management of the finance function ofan enterprise, resulting in proficiency incomplex financial management, capital
allocation, and financial reporting processes,
or experience in actively supervisinga principal financial officer, principal
accounting officer, controller, public
accountant, auditor or person performing
similar functions

Leadership
Extended leadership experience for asignificant enterprise, resulting in a practicalunderstanding of organizations, processes,
strategic planning, and risk management.
Demonstrated strengths in developing
talent, planning succession, and driving
change and long-term growth

Board service and governance

Service on a public company board todevelop insights about maintaining board
and management accountability, protecting
shareholder interests, and observing
appropriate governance practices

Diversity

Global business

Representation of gender, ethnic,
geographic, cultural, or other perspectives
that expand the Board’s understanding of
the needs and viewpoints of our customers,
partners, employees, governments andother stakeholders worldwide

Experience in driving business successin markets around the world, with anunderstanding of diverse businessenvironments, economic conditions,cultures, and regulatory frameworks, anda broad perspective on global market
opportunities

Information Technology
Significant background in technology,
resulting in knowledge of how to anticipate
technological trends, generate disruptive
innovation, and extend or create new
business models

Mergers and Acquisitions
A history of leading growth throughacquisitions and other businesscombinations, with the ability to assess‘build or buy’ decisions, analyze the fit ofa target with the Company’s strategy andculture, accurately value transactions, andevaluate operational integration plans

Sustainability, andEnvironmental, Socialand Governance (ESG)

Sales and marketing

Experience in developing strategies togrow sales and market share, build brandawareness and equity, and enhanceenterprise reputation

Risk management
Experience in identifying and evaluating the significant risk
exposures to the business strategy of the Company and assess theManagement’s actions to mitigate strategic, legal and compliance,and operational risk exposures

Experience in leading the sustainability
and ESG visions of organizations, to be able
to integrate these into the strategy of theCompany

Cybersecurity
Experience in assessing and managing cybersecurity-related risks
and implementing cybersecurity policies, procedures and strategies

The details of core expertise / competency of each director is provided in Infosys Board of Directors section in the Integrated Annual Report.

Infosys Integrated Annual Report 2022-23

121

Corporate governance report
Selection and appointment of new directors

The Board delegatesthe screening andselection process to
the Nomination andRemuneration
Committee, which
consists exclusively
of independent
directors.

The Committee,
based on defined
criteria, as laid out in
the Nomination andRemuneration
Policy, presents adiverse slate ofrecommendations ofeligible candidates
to the Board.

Succession planning
The Nomination and Remuneration Committee works with
the Board on the leadership succession plan to ensure orderly
succession in appointments to the Board and to senior
management positions. The Company strives to maintainan appropriate balance of skills and experience within theorganization and the Board in an endeavour to introduce newperspectives while maintaining experience and continuity.
In addition, promoting senior management within theorganization fuels the ambitions of the talent force to earn
future leadership roles.

Training of Board members
All new non-executive directors inducted to the Board are
introduced to our Company culture through orientation sessions.
Executive directors and senior management provide an overview
of operations, and familiarize the new non-executive directors
on matters related to our values and commitments. They arealso introduced to the organization structure, services, Groupstructure and subsidiaries, constitution, Board procedures,
matters reserved for the Board, major risks and risk management
strategy. The details of the familiarization program are alsoavailable on the Company’s website, at
https://www.infosys.com/investors/reports-filings/Documents/
training-board-members2023.pdf.
We also facilitate the continual educational requirements of ourdirectors. Each director is entitled to a training fee of US$ 5,000
per year. Support is provided for independent directors if theychoose to attend educational programs in the areas of Board /corporate governance. Non-executive and independent directorsof the Board are familiarized through engagements such as:

The Board
recommends theappointment of thedirector to theshareholders.

The proposal isplaced before theshareholders forapproval.

Strategy retreat: As part of our annual strategy planning process,we organize a management strategy retreat with the Board
to deliberate on various topics related to strategic planning,
progress of ongoing strategic initiatives, risks to strategy
execution and the need for new strategic programs to achieve
the Company’s long-term objectives. This serves the dual
purpose of providing the Board members a platform to bring
their expertise to various strategic initiatives, while also providing
an opportunity for them to understand detailed aspects ofexecution and challenges relating to the specific theme.
In summary, through this process, members of the Board get
a comprehensive and balanced perspective on the strategic
issues facing the Company, the competitive differentiation being
pursued by the Company, and an overview of the execution
plan. In addition, this event allows the members of the Board tointeract closely with the senior leadership of the Company.
The details of the training programs attended by the Board
members in fiscal 2023 are as follows:
Name of the director

No. of training hours attended
during fiscal 2023

Nandan M. Nilekani

5.5

Salil Parekh

5.5

Kiran Mazumdar-Shaw

5.5

(1)

D. Sundaram

5.5

Michael Gibbs

5.5

Uri Levine

5.5

Bobby Parikh

5.5

Chitra Nayak

5.5

Govind Iyer

4

(2)

Total hours

122

48

(1)

Retired as Independent Director effective March 22, 2023

(2)

Appointed as Independent Director effective January 12, 2023

Infosys Integrated Annual Report 2022-23

Our legacy of good
corporate governancehas translated into trust fromall stakeholders. To maintain thistrust, continuous efforts are madeto facilitate effective corporate
governance measures such as
constitution, governanceand working of Board
committees.

Effective corporate governance

Availability of information to Board
members

and statutory matters are presented
to the committees of the Board andlater, with the recommendation of thecommittees, to the Board for its approval.
As a process, information to directors is
submitted along with the agenda well inadvance of Board meetings. Inputs and feedbackof Board members are taken and considered while preparing
the agenda and documents for the Board meetings. At thesemeetings, directors can provide their inputs and suggestions on
various strategic and operational matters.

The Board has unrestricted access to all
Company-related information, including that ofour employees. At Board meetings, managers andrepresentatives who can provide additional insights
into the items being discussed are invited. Information isprovided to the Board members on a continuous basis for theirreview, inputs and approval. Strategic and operational plans arepresented to the Board in addition to the quarterly and annual
financial statements. Specific cases of acquisitions, importantmanagerial decisions, material positive / negative developments

Attendance of directors during fiscal 2023
During the year, eight Board meetings were held.

Board attendance
No. of Board meeting
Name of the director

AGM onJune 25,
2022

1

2

3

Apr May 21, Jul 13,
12-13, 2022 2022
2022

4

5

6

Jul
Oct 11, Oct23-24, 2022 12-13,
2022
2022

Held
duringJan Mar 10, tenure
11-12, 2023
2023
7

8

L

Nandan M. Nilekani% ofattendance

8

7

88

Salil Parekh

L

8

7

88

Kiran Mazumdar-Shaw(1)

L

8

7

88

D. Sundaram

L

8

7

88

Michael Gibbs

8

8

100

Uri Levine

8

8

100

Bobby Parikh

8

8

100

Chitra Nayak

8

8

100

2

2

100

Govind Iyer(2)

NA

NA

NA

NA

NA

NA

NA

% of attendance

100

100

100

100

100

88

100

Present

Attended

L Leave of absence(1)

Retired as Independent Director effective March 22, 2023

(2)

Appointed as Independent Director effective January 12, 2023

Infosys Integrated Annual Report 2022-23

100

67

Attended through video call123

Corporate governance report
Governance of Board committees
The Board, in consultation with the Nomination andRemuneration Committee, is responsible for assigning anddetermining the terms of service for committee members.
The Chairman of the Board, in consultation with the Company
Secretary and the respective committee chairperson, determines
the frequency of the committee meetings. Generally, allcommittees meet four times a year. The recommendationsof the committees are submitted to the Board for approval.
During the year, all recommendations of the committees wereapproved by the Board.
The quorum for meetings is the higher of two members or onethird of the total number of members of the committee.

Board committees as on March 31, 2023
The Board

Audit Committee

Nomination andRemuneration
Committee

Bobby Parikh
D. Sundaram
Michael Gibbs

Govind Iyer

Corporate Social
Responsibility
Committee

Environmental, Socialand GovernanceCommittee

D. Sundaram

Govind Iyer

Chitra Nayak

D. Sundaram

Michael Gibbs

Michael Gibbs

Uri Levine
Chitra Nayak

Uri Levine
Govind Iyer

Michael Gibbs

D. Sundaram

Uri Levine

Bobby Parikh

Bobby Parikh

Chitra Nayak

Risk Management
Committee

Stakeholders
RelationshipCommittee

Chitra Nayak
Govind Iyer

Cybersecurity Risk
Sub-committee
Michael Gibbs
D. Sundaram

Chairperson

124

MemberUri Levine
Govind Iyer

Infosys Integrated Annual Report 2022-23

Audit Committee

Bobby Parikh
Chairperson and Financial expert

The audit committee (“the Committee”) comprises only independent directors. As on March 31, 2023, the Committee comprised:
1. Bobby Parikh, Chairperson and Financial expert
2. D. Sundaram, Financial Expert
3. Michael Gibbs

The Company Secretary acts as the secretary to the Audit Committee.
Objectives of the Committee
The primary objective of the Committee is to assist theBoard with oversight of:
1. The accuracy, integrity and transparency of the Company’s
financial statements with adequate and timely disclosures;
2. Compliance with legal and regulatory requirements;
3. The Company’s independent auditors’ professional
qualifications and independence;
4. The performance of the Company’s independent auditors andinternal auditors; and5. Acquisitions and investments made by the Company.

Audit Committee Charter
In India, we are listed on the BSE Limited (BSE) and the National
Stock Exchange of India Limited (NSE). We are also listed on NYSE
in the US. In India, Regulation 18 of the Listing Regulations and in
the US, the Blue Ribbon Committee set up by the U.S. Securities
and Exchange Commission (SEC) mandate that listed companies
adopt an appropriate Audit Committee Charter. The Committee
is guided by the Charter adopted by the Board, available on
the Company’s website, at https://www.infosys.com/investors/
corporate-governance/documents/audit-committee-charter.
pdf. The Charter is reviewed annually and was last amended on
April 13, 2023, to keep it relevant to the current composition andfunctions of the Committee.

Infosys Integrated Annual Report 2022-23

Process adopted by the Committee to fulfill its objectives
Ensuring an effective and independent internal audit
function, which works to provide assurance regarding theadequacy and operation of internal controls and processes
intended to safeguard the Company’s assets, effective andefficient use of the Company’s resources and, timely andaccurate recording of all transactions
Meeting the independent auditor from time to time to
discuss key observations related to the financial statements
for the relevant period
Providing an independent channel of communication for
the Chief Compliance Officer, the internal auditor and the
independent auditor
Inviting members of the Management and, at its discretion,
external experts in legal, financial and technical matters, toprovide advice and guidance
Reviewing its own Charter, structure, processes, membership
periodically, and recommending proposed changes to theBoard for approval
Meeting at least four times in a year and not more than 120
days shall elapse between two meetings
Providing periodic feedback and reports to the Board

125

Corporate governance report
Committee governanceis responsible for the Company’s internal control over financial
reporting and the financial reporting process. The independent
auditors are responsible for performing an independent auditof the Company’s financial statements in accordance with
the Generally Accepted Auditing Principles and for issuing areport based on the audit.

The Committee fulfills the requirements of:•

Audit Committee Charter•

Section 149 and 177 of the Companies Act, 2013•

Regulation 18 of the Listing Regulations•

NYSE guidelines, as applicable

The Committee met 11 times during the year, which is morethan the requirement of the Companies Act, 2013 and theListing Regulations.

The Committee, to carry out its responsibilities efficiently andtransparently, relies on the Management’s financial expertise andthat of the internal and independent auditors. The Management

Composition and attendance

100%

3

11

97%

Independence

Members

Meetings

Attendance

Attendance details of the Audit Committee
Audit Committee meeting
Committee meeting details
Name of the member

1

2

3

4

5

6

7

8

9

10

11

Apr 4, Apr May Jul 13, Jul Aug 1, Oct 11, OctJanMar2022 12-13, 21, 2022 23-24, 2022 2022 12-13, 11-12, 1-2,
2022 2022
2022
2022 2023 2023

Mar
10,
2023

Bobby Parikh(1)L

D. Sundaram(2)Michael Gibbs% of attendance
Present

100

100

Attended

100

100

100

100

L Leave of absence(1)

Appointed as the Chairperson of the Committee effective March 23, 2023

(2)

Ceased to be the Chairperson of the Committee effective March 23, 2023

100

100

100

100

Held
duringtenure% ofattendance

11

11

100

11

10

91

11

11

100

67

Attended through video call

Audit Committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

The Management shared the Company’s financial statements, prepared in accordance with the Indian Accounting Standards(Ind AS) as specified under the Companies Act, 2013, read with the relevant rules thereunder and International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board, with the Committee.

Q

Held discussions with the auditors (whenever necessary, without the presence of members of the Management) regarding theCompany’s audited financial statements and sought the auditors’ judgment on the quality and applicability of the accounting
principles, the reasonableness of significant judgments, the adequacy of disclosures in the financial statements and othermatters as the Committee deemed necessary

Q

Undertook an annual performance evaluation of its own effectivenessA

Reviewed with independent auditors the nature and scope of the audit, reviewed the audit engagement to ascertain adequacy
and appropriatenessA

Reviewed the Management’s discussion and analysis of the financial condition and results of operations

A

Discussed with the auditors the matters required by Public Company Accounting Oversight Board (PCAOB) Auditing Standard
1301, as adopted by the PCAOB in Rule 3200

A

Besides discussing the overall scope and plan for the internal audit and requirements of SEC, SEBI and other regulatory bodies, theCommittee also reviewed the adequacy and effectiveness of the Company’s legal, regulatory and ethics compliance programs.

Q

126

Infosys Integrated Annual Report 2022-23

Reviewed the annual performance assessment of statutory auditors, internal auditors and the secretarial auditors

A

Recommended appointment of internal auditors and secretarial auditors

A

Reviewed and recommended audit fees, audit related fees, availing permissible non-audit services by statutory auditors and thecorresponding non-audit service fees for Board’s approvalP

Helped the Board monitor the Management’s financial reporting process

P

Reviewed the process adopted by the Management for testing impairment of assets including financial assets and goodwill

P

Reviewed the significant transactions of the subsidiaries

P

Reviewed and approved related party transactions, granted omnibus approvals from time to time, took note of half-yearly
disclosures to the stock exchanges and recommended to the Board for approval as and when necessary

P

Reviewed the performances of the acquired entities. It also approved and recommended the investments, divestments andacquisitions made during the year for the approval of the Board

P

Monitored and reviewed mechanism to track the compliances under insider trading Regulations and also reviewed the legal andcompliance updates in addition to the investigations of the whistleblower complaints received during the year

Q

Reviewed, approved and recommended amendments to the Audit Committee Charter

P

Reviewed and recommended to the Board on various policies as part of annual policy review process

P

Took note of disclosures by promoters under Regulation 31(5) of SEBI (Substantial Acquisition of Shares andTakeovers) Regulations, 2011

A

Frequency

A Annually

Q Quarterly

P Periodically

Recommendations of the Committee
Based on its discussion with the Management and the auditors,
and a review of the representations of the Management and thereport of the auditors, the Committee has recommended thefollowing to the Board:••

The Company’s quarterly financial statements, prepared inaccordance with the Indian Accounting Standards (Ind AS)
as specified under the Companies Act, 2013, read with therelevant rules thereunder and the International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board
The audited financial statements of Infosys Limited, preparedin accordance with Ind AS, for the year ended March 31, 2023,
be accepted by the Board as a true and fair statement of thefinancial status of the Company•

The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in accordance with Ind
AS, for the year ended March 31, 2023, be accepted by the
Board as a true and fair statement of the financial status of
the Group•

The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in Indian rupeein accordance with IFRS, for the quarter and year ended
March 31, 2023, be accepted by the Board as a true and fairstatement of the financial status of the Group•The audited consolidated financial statements of Infosys
Limited and its subsidiaries, prepared in US dollar inaccordance with IFRS, for the year ended March 31, 2023, be
accepted by the Board as a true and fair statement of thefinancial status of the Group and included in the Company’s
Annual Report on Form 20-F, to be filed with the U.S.
Securities and Exchange Commission (SEC)

Infosys Integrated Annual Report 2022-23•

The appointment of Ernst & Young LLP as the internal
auditors of the Company for the year ending March 31, 2024,
to review various operations of the Company•

The appointment of Makarand M. Joshi & Co. Company
Secretaries, as secretarial auditor for the year ending March
31, 2024, to conduct the secretarial audit as prescribed under
Section 204 and other applicable sections of the Companies
Act, 2013•

The Committee will be issuing a letter in line with
Recommendation No. 9 of the Blue Ribbon Committee
on Audit Committee effectiveness, to be provided in thefinancial statements prepared in accordance with IFRS in the
Annual Report on Form 20-F.

Relying on its review and the discussions with the Management
and the independent auditors, the Committee believes that
the Company’s financial statements are fairly presented inconformity with Ind AS and IFRS and that there is no significant
deficiency or material weakness in the Company’s internal
control over financial reporting. In conclusion, the Committee issatisfied that it has complied with its responsibilities as outlinedin the Audit Committee Charter. The Board has accepted allrecommendations made by the Audit Committee.
Sd/Bengaluru
April 13, 2023

Bobby Parikh
Chairperson

127Corporate governance report

Nomination and Remuneration Committee

D. Sundaram
Chairperson

The Nomination and Remuneration Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, theCommittee comprised:
1. D. Sundaram , Chairperson
2. Michael Gibbs
3. Govind Iyer

Objectives of the Committee

Committee governance

The main objectives and responsibilities of the Committee are to:

The Committee fulfills the requirements of:

1. Assist the Board in discharging its responsibilities relating to
the compensation of the Company’s executive directors, KeyManagerial Personnel (KMP) and senior management
2. Evaluate and approve the adequacy of the compensationplans, policies, programs and succession plans for theCompany’s executive directors, KMP and senior management(including identifying persons to be appointed to positions of
KMP and senior management in accordance with identified
criteria and to recommend to the Board their appointment
and removal);
3. Formulate the criteria for determining qualifications, positive
attributes and independence of a director, and performance
evaluation of directors on the Board
4. Administration of equity-based plans / schemes approved by
the shareholders
5. Oversee the Company’s nomination process for KMP
and senior management and identify, screen and review
individuals qualified to serve as directors, KMP and senior
management consistent with criteria approved by the Board
6. Recommend the appointment and removal of directors, forapproval at the annual meeting of shareholders;
7. Carry out evaluation of the performance of the Board andreview the evaluation’s implementation and compliance;
8. Leadership development and succession planning
9. Develop and maintain corporate governance policies
applicable to the Company
10. Devise a policy on Board diversity•

Nomination and Remuneration Committee Charter•

Section 178 of the Companies Act, 2013•

Regulation 19 of the Listing Regulations•

NYSE guidelines, as applicable

The Committee oversees key processes by which the Company
recruits new members to its Board, and the processes by which
the Company recruits, motivates and retains outstanding senior
management as well as the Company’s overall approach tohuman resources management.

Committee Policy and Charter
The Board amended the Charter of the Nomination andRemuneration Committee on January 12, 2022 and theNomination and Remuneration Policy on March 17, 2023. The
Committee Charter and Policy are available on our website, at:Charter: https://www.infosys.com/investors/corporategovernance/documents/nomination-remunerationcommittee-charter.pdf
Policy: https://www.infosys.com/investors/corporategovernance/documents/nomination-remuneration-policy.pdf
The Nomination and Remuneration Committee met seventimes during fiscal 2023.

Composition and attendance

128

100%

3

7

93%

Independence

Members

Meetings

Attendance
Infosys Integrated Annual Report 2022-23

Attendance details of the Nomination and Remuneration Committee
Nomination and Remuneration Committee meeting
Committee meeting details
1

2

3

4

5

6

7

Apr 12,
2022

May 21,
2022

Jul 23,2022

Oct 11,
2022

Oct 12,2022

Jan 11,
2023

Mar 10,2023

Name of the memberHeldduringtenureL% ofattendance

7

6

86

Michael Gibbs

7

7

100

Govind Iyer

1

1

100

7

6

86

D. Sundaram(1)
NA

(2)

NA

NA

NA

NA

NA

L

Kiran Mazumdar-Shaw

(3)

100

% of attendance
Present

100

Attended100

100

L Leave of absence

100

100

50

Attended through video call

(1)

Appointed as the Chairperson of the committee effective March 23, 2023

(3)

Ceased to be a Chairperson and member of the Committee due to retirement effective March 22, 2023

(2)

Appointed as a member of the Committee effective January 13, 2023

Nomination and remuneration committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

Made regular reports to the Board regarding its actions and made recommendations to the Board as appropriate

Q

Recommended the appointment of Egon Zehnder, a leadership advisory firm on board matters, to assist in evaluating themembers of the Board, its committees, and the Board as a whole. Accordingly, the exercise was completed during fiscal 2023.

A

Undertook a review of the succession plans for key leadership positions, and helped to shape and monitor the development
plans of key leadership personnel

P

Reviewed the responsibilities of the Board-level committees and based on the expertise of the members of the Board,
recommended for the reconstitution of the Board-level committees

P

Reviewed and recommended to the Board the amendments to the Nomination and Remuneration Policy

P

Reviewed the Nomination and Remuneration Committee Charter

A

Reviewed the overall Board composition and recommended the appointment of Govind Iyer as a member of the Board

P

Placed a substantial focus on improving the overall diversity of the workforce and enhancing employee engagement throughreal-time feedback from employees

P

Stock incentives were approved and granted to eligible employees of the Company and subsidiaries during the year under the2015 Plan and the 2019 Plan.

P

Designing, benchmarking and continuously reviewing the compensation program for the Board and the CEO & MD against theachievement of measurable performance goals

P

Undertook an annual performance evaluation of its own effectivenessA

Reviewed various initiatives undertaken by the Company to ensure the safety, security and well-being of employees, as well as
their overall development through learning programs and on-the-job training.

Q

Recommended the appointment of Shaji Mathew as Group Head of Human Resources and KMP

P

Recommended the appointment of D. Sundaram as Lead Independent Director of the Company, for the approval of the BoardP

Frequency

A Annually

Q Quarterly

P Periodically
Sd/Bengaluru
April 12, 2023

Infosys Integrated Annual Report 2022-23

D. Sundaram
Chairperson

129Corporate governance report

Corporate Social Responsibility Committee

Govind Iyer
Chairperson

The Corporate Social Responsibility Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, theCommittee comprised:
1. Govind Iyer, Chairperson
2. Uri Levine
3. Chitra Nayak

Our CSR philosophy

Committee governanceWe focus on our social and environmental responsibilities tofulfill the needs and expectations of the communities aroundus. Our CSR is not limited to philanthropy, but encompasses
holistic community development, institution-building andsustainability-related initiatives.

The Committee comprised three independent directors andfulfill the requirements of:

Objectives and responsibilities of the Committee
The primary objective of the Committee is to assist the Board in
fulfilling its corporate social responsibility. The Committee has
overall responsibility for:1. Identifying the areas of CSR activities
2. Recommending the amount of expenditure to be incurred on
the identified CSR activities
3. Implementing and monitoring the CSR Policy from time to time
4. Formulating a CSR annual action plan and recommending it to
the Board
5. Reviewing the Company’s initiatives and programs
6. Coordinating with Infosys Foundation or such otheragency(ies) in implementing programs and executing
initiatives as per the CSR policy of the Company.

•

Section 135 of the Companies Act, 2013•

CSR Committee Charter

The CSR committee is responsible for in identifying the areasof CSR activities, programs and execution of initiatives as per
defined guidelines and for overseeing the activities / functioningof the Infosys Foundation, Infosys Foundation USA and otherinitiatives undertaken by the Company, including Australia andEurope. The Foundations, in turn, guide the CSR committee
in reporting the progress of deployed initiatives, and making
appropriate disclosures on a periodic basis.
The CSR Committee met four times during fiscal 2023.

Composition and attendance

130

100%

3

4

100%

Independence

Members

Meetings

Attendance

Infosys Integrated Annual Report 2022-23

Attendance details of the CSR Committee
CSR Committee meeting
Committee meeting details
1

2

3

4

Apr 11, 2022

Jul 23, 2022

Oct 11, 2022

Jan 10, 2023

Name of the memberHeldduringtenure% ofattendance

Kiran Mazumdar-Shaw(1)

4

4

100

Chitra Nayak

4

4

100

Uri Levine

4

4

100

NA

NA

Govind Iyer

NA

NA

NA

NA

% of attendance

100

100

100

100

(2)

Present

Attended

L Leave of absence

NA

Attended through video call

(1)

Ceased to be a Chairperson and member of the Committee due to retirement effective March 22, 2023

(2)

Appointed as a member of the Committee effective January 13, 2023 and the Chairperson effective March 23, 2023

Committee Policy and Charter

CSR report

The Committee, with the approval of the Board, has adopted the
CSR Policy as required under Section 135 of the Companies Act,
2013. The Board amended the Charter of the CSR Committee andCSR Policy on July 14, 2021. The Committee Charter and Policy areavailable on our website, at:

The CSR report, as required under the Companies Act, 2013,
for the year ended March 31, 2023, is attached as Annexure 6
to the Board’s report.

Charter: https://www.infosys.com/investors/corporategovernance/documents/corporate-social-responsibilitycommittee-charter.pdf
Policy: https://www.infosys.com/investors/
corporate-governance/documents/corporate-socialresponsibility-policy.pdf

The Committee, on a periodic basis, reviewed and approved
the budget and disbursement of funds. The Committee ensuresthat at least 2% of the average net profits of the Company madeduring the three immediately preceding financial years is spent
for CSR activities in India during the year. Accordingly, during
fiscal 2023, the Company spent `391.51 crore on various projects.
The unspent balance of `45.33 crore is towards various ongoingprojects and will be transferred to the unspent CSR accountand spent in accordance with the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and amendments thereunder.
In addition to the `391.51 crore spent in fiscal 2023, the Company
also spent `64.39 crore on account of ongoing projects of fiscals
2021 and 2022. The CSR amount spent in the US, Australia, andacross Europe, in UK, Germany, France and Ukraine, is over andabove the statutory requirement in India.

Sd/Bengaluru
April 11, 2023

Infosys Integrated Annual Report 2022-23

Govind Iyer
Chairperson

131Corporate governance report

ESG Committee

Chitra Nayak
Chairperson

The ESG Committee (“the Committee”) was constituted with effect from April 14, 2021. Infosys is one of the first Indian companies to havea voluntary independent Board ESG Committee to oversee the Company’s ESG priorities. The Committee comprises only independent
directors. As on March 31, 2023, the Committee comprised:
1. Chitra Nayak, Chairperson
2. Uri Levine
3. Govind Iyer

Objectives and responsibilities of the Committee

6. Review and reassess the adequacy of the ESG Committee
Charter periodically and recommend any proposed changes
to the Board for approval.

1. Guide the creation of the ESG vision and ambitions of theCompany and continuously review updates and progress on
the ESG vision and goals, thereon.
2. Review the ESG Operations Council and its working.
The Committee may form and delegate authority to subcommittees as and when appropriate.
3. Ensure that the Company is taking the appropriate measuresto undertake and implement actions to further its ESG vision
and ambitions. The Committee shall have access to any
internal information necessary to fulfill its role, in this regard.
4. Review any statutory requirements for sustainability
reporting, e.g. Business Responsibility and Sustainability
Report (BRSR) and guide Infosys’ leadership on global ESG
assessments.
5. Authority to obtain advice and assistance from internal orexternal experts, advisors.

Committee governance
The main responsibility of the ESG Committee is to guidethe ESG journey of the Company embarked from 2011.
The ESG Committee Charter dated July 14, 2021, can beaccessed at https://www.infosys.com/investors/corporategovernance/documents/environment-social-governancecommittee-charter.pdf
The Company’s ESG vision 2030 and ESG report
2023 can be accessed athttps://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html
https://www.infosys.com/sustainability/documents/infosysesg-report-2022-23.pdf
The ESG committee met four times during fiscal 2023.

Composition and attendance

132

100%

3

4

100%

Independence

Members

Meetings

Attendance

Infosys Integrated Annual Report 2022-23

Attendance details of the ESG Committee
ESG Committee meeting
Committee meeting details
1

2

3

4

Apr 11, 2022

Jul 23, 2022

Oct 11, 2022

Jan 10, 2023

Name of the memberHeldduringtenure% ofattendance

4

4

100

Kiran Mazumdar-Shaw

4

4

100

Uri Levine

4

4

100

NA

NA

Chitra Nayak(1)(2)

Govind Iyer

NA

NA

NA

NA

% of attendance

100

100

100

100

(3)

Present

Attended

L Leave of absence

NA

Attended through video call

(1)

Appointed as the Chairperson of the Committee effective April 14, 2022

(2)

Ceased to be the Chairperson of the Committee effective April 13, 2022 and member of the Committee effective March 22, 2023.

(3)

Appointed as a member of the Committee effective January 13, 2023

ESG Committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

Made regular reports to the Board regarding its actions and made recommendations to the Board as appropriate

Q

Reviewed the ESG Operations Council and its working

Q

Reviewed digital skilling and reskilling initiatives of the Company

A

Reviewed responsible supply chain initiatives, global climate change disclosure requirements, and process and data quality
audit reports

P

Reviewed ESG ambitions 2030 and took note of responsible supply chain program and various sustainable procurement initiatives

P

Reviewed and recommended amendments to the Corporate Governance Guidelines, for the approval of the Board

P

Monitored the Company’s progress on Diversity, Equity and Inclusion leadership, including training initiatives on unconscious
bias and Orbit Next etc.

Q

Reviewed the Company’s position with respect to global ESG assessments and provided directions to address gaps

Q

Reviewed client engagements on climate actions and sustainabilityA

Frequency

A Annually

Q Quarterly

P Periodically
Sd/Bengaluru
April 11, 2023

Infosys Integrated Annual Report 2022-23

Chitra Nayak
Chairperson

133Corporate governance report

Risk Management Committee

D. Sundaram
Chairperson

The Risk Management Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, theCommittee comprised:
4. Bobby Parikh
1. D. Sundaram, Chairperson
5. Chitra Nayak
2. Michael Gibbs
6. Govind Iyer
3. Uri Levine

Objectives and responsibilities of the Committee
The primary objectives of the Committee are:
1. To assist the Board in fulfilling its corporate governanceoversight responsibilities with regard to the identification,
evaluation and mitigation of strategic, operational, andexternal environment risks
2. To monitor and approve the enterprise risk management
framework and associated practices of the Company
3. To periodically assess risks to the effective execution ofbusiness strategy by reviewing key leading indicators in thisregard
4. To periodically review the risk management processes andpractices of the Company and ensure that the Company istaking the appropriate measures to achieve prudent balance
between risk and reward in both ongoing and new businessactivities
5. To evaluate significant risk exposures of the Company andassess the Management’s actions to mitigate the exposures ina timely manner
6. To evaluate risks related to cybersecurity and ensure
appropriate procedures are in place to mitigate these risks in atimely manner
7. To coordinate its activities with the Audit Committee ininstances where there is any overlap with audit activities

8. To review and reassess the adequacy of the Risk Management
Committee Charter periodically and recommend any
proposed changes to the Board for approval
9. To ensure access to any internal information necessary to
fulfill its oversight role and obtain advice and assistance frominternal or external legal, accounting or other advisors
10. To appoint, remove and approve terms of remuneration of the
Chief Risk Officer

Committee governance
The Committee comprises only independent directors and fulfills
the requirements of:•

Risk Management Committee Charter•

Regulation 21 of the Listing Regulations•

NYSE guidelines, as applicable

Committee Charter
The Risk Management Committee Charter as amended on July
14, 2021 is available on the Company’s website, at
https://www.infosys.com/investors/corporate-governance/
documents/risk-management-committee-charter.pdf
The Committee met four times during fiscal 2023.

Composition and attendance

134

100%

6

4

Independence

Members

Meetings

100%
Attendance

Infosys Integrated Annual Report 2022-23

Attendance details of the Risk Management Committee
Risk Management Committee meeting
Committee meeting details
1

2

3

4

Apr 11, 2022

Jul 24, 2022

Oct 11, 2022

Jan 10, 2023

Name of the memberHeldduringtenure% ofattendance

4

4

100

Kiran Mazumdar-Shaw

4

4

100

Michael Gibbs

4

4

100

Uri Levine

4

4

100

Bobby Parikh

4

4

100

Chitra Nayak

4

4

100

NA

NA

D. Sundaram(1)

Govind Iyer(2)

NA

NA

NA

NA

% of attendance

100

100

100

100

Present

Attended

L Leave of absence

NA

Attended through video call

(1)

Ceased to be a member of the Committee due to retirement effective March 22, 2023

(2)

Appointed as a member of the Committee effective January 13, 2023

Risk Management Committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

Reviewed the risks arising due to evolving macro‐economic scenarios in markets we operate

P

Reviewed risks and mitigation actions to heightened competitive landscape, technology disruption and innovation, inflation,and regulatory environment

P

Reviewed the risks and assessed the mitigation actions put in place to address talent constraints

P

Reviewed the risks and assessed mitigation actions put in place to tackle challenges arising due to geopolitical conflicts
including the crisis in Eastern Europe

P

Reviewed and reassessed the adequacy of the Committee’s charter and recommended any proposed changes to the Board forapproval

P

Reviewed the governance of contractual liabilities

P

Reviewed service delivery risk in critical client engagements

P

Reviewed client credit risk

Q

Reviewed the risks to the achievement of ESG goals

P

Reviewed the risks related to hybrid working modelP

Assessed top risks to the effective execution of the Company’s strategy; tracked trend lines of top strategic, operational andcompliance‐related risks, the likelihood of their occurrence, potential impact and progress of mitigation actions

Q

Reviewed the Company’s information security and data privacy policies, incident policy, related system controls, GDPR andsimilar regulatory requirements, risks and progress of mitigation actions

Q

Reviewed the cybersecurity related risks and oversight of the Cybersecurity Risk Sub‐committee

Q

Submitted regular reports and recommendations to the Board with respect to risk management and mitigation procedures

Q

Reviewed the appointment and terms of remuneration of the Chief Risk Officer

A

Reviewed and approved the Enterprise Risk Management Framework of the Company

A

Undertook an annual performance evaluation of its own effectivenessA

Frequency

A Annually

Q Quarterly

P Periodically
Sd/Bengaluru
April 11, 2023

Infosys Integrated Annual Report 2022-23

D. Sundaram
Chairperson

135Corporate governance report

Cybersecurity Risk Sub-committee

Michael Gibbs
Chairperson and Cybersecurity expert

The Cybersecurity Risk Sub-committee (“the Sub-committee”) comprises only independent directors. As on March 31, 2023, the subcommittee comprised:
1. Michael Gibbs, Chairperson and Cybersecurity expert
2. D. Sundaram
3. Uri Levine
4. Govind Iyer

Committee governanceand react to such risks. The Sub-committee meets periodicallyand recommends its findings, if any, to the Risk Management
Committee. The Sub-committee has appointed an external
consultant who is an expert in security engineering to advice andguide the Sub-committee on cybersecurity matters.

The risk management Committee constituted a Cybersecurity
Risk Sub-committee in April 2019. This Sub-committee wasvoluntarily constituted to focus on cybersecurity-related threats.
The objective of the Sub-committee is to assess cybersecurityrelated risks and the preparedness of the Company to mitigate

The Sub-committee met four times during fiscal 2023.

Composition and attendance

100%

4

4

Independence

Members

Meetings

100%
Attendance

Attendance details of the Cybersecurity Risk Sub-committee
Cybersecurity Risk Sub-committee meeting
Committee meeting details
1

2

3

4

Apr 05, 2022

Jul 14, 2022

Oct 11, 2022

Jan 10, 2023

Name of the member% ofattendanceMichael Gibbs

4

4

100

D. Sundaram

4

4

100

Uri Levine

4

4

100

NA

NA

Govind Iyer

NA

NA

NA

NA

% of attendance

100

100

100

100

(1)

Present(1)

HeldduringtenureAttended

L Leave of absence

NA

Attended through video call

Appointed as a member of the committee effective January 13, 2023

136

Infosys Integrated Annual Report 2022-23

Cybersecurity Risk Sub-committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

Reviewed the security awareness initiatives along with consequence management for violations

P

Reviewed the heightened external threat environment

P

Reviewed the remote and hybrid working challenges and controls

P

Reviewed the new regulatory requirements for cybersecurity

P

Reviewed the cyber resilience table-top exercise and other initiatives like the internal and external bug bounty program, ISG
boot camp etc.

P

Reviewed subsidiaries’ BitSight ratingP

Reviewed the threat landscape and incident metrics, global ransomware attacks, and Infosys preparedness

Q

Reviewed the security program maturity assessment and external benchmarking

A

Frequency

A Annually

Q Quarterly

P Periodically

Sd/Bengaluru
April 11, 2023

Infosys Integrated Annual Report 2022-23

Michael Gibbs
Chairperson

137Corporate governance report

Stakeholders Relationship Committee

Michael Gibbs
Chairperson

The Stakeholders Relationship Committee (“the Committee”) comprises only independent directors. As on March 31, 2023, theCommittee comprised:
1. Michael Gibbs, Chairperson
2. D. Sundaram
3. Bobby Parikh
4. Chitra Nayak

The Board has appointed A.G.S. Manikantha, Company Secretary, as the Compliance Officer, as required under the Listing
Regulations and the Nodal Officer to ensure compliance with the IEPF rules.
Purpose of the Committee

Committee governance

The purpose of the Committee is to assist the Board andthe Company to oversee the various aspects of interests ofstakeholders of the Company. The term ‘stakeholder’ includes
shareholders, debenture holders and other security holders.

The Committee comprises four independent directors andperforms the functions as required by:•

Section 178 of the Companies Act, 2013 and rules framed
thereunder•

Regulation 20 of the Listing Regulations and otherregulations and laws, as applicable

The primary objectives of the Committee are to:•

NYSE guidelines, as applicable

1. Consider and resolve the security holders’ concerns orcomplaints
2. Monitor and review the investor service standards of theCompany
3. Take steps to develop an understanding of the views ofshareholders about the Company, either through directinteraction, analysts’ briefings or survey of shareholders
4. Oversee and review the engagement and communication
plan with shareholders and ensure that the views andconcerns of the shareholders are highlighted to the Board at
the appropriate time and that steps are taken to address suchconcerns•

Stakeholders Relationship Committee Charter

Objectives and responsibilities of the Committee

Committee Charter
The Stakeholders Relationship Committee Charter dated April
1, 2019, is available on the Company’s website, at https://www.
infosys.com/investors/corporate-governance/documents/
stakeholders-relationship-committee.pdf

Composition and attendance

138

100%

4

4

Independence

Members

Meetings

100%
Attendance

Infosys Integrated Annual Report 2022-23

Attendance details of the Stakeholders Relationship Committee
Stakeholders Relationship Committee meeting
Committee meeting details
1

2

3

4

Apr 11, 2022

Jul 23, 2022

Oct 11, 2022

Jan 10, 2023

Name of the memberHeldduringtenureD. Sundaram(1)4

Bobby Parikh
Chitra Nayak
Michael Gibbs(2)

NA

NA

NA

NA

% of attendance

100

100

100

100

Present

L Leave of absence

Attended(1)

Ceased to be the Chairperson of the Committee effective March 23, 2023

(2)

Appointed as the Chairperson of the Committee effective March 23, 2023

Shares414,45,16,086 40,43,958

Total 29,40,027

Total 414,85,60,044

4

4

100

NA

NA

NA

2023

2022

3,312
3,312
Received% to equity
Dematerialized

100
100

Complaints received and resolved during the year
ended March 31, 2023

Members
29,39,742 285

0.10

4

4
4

Attended through video call

Shareholding as on March 31, 2023

99.90

% of
attendance

3,568
3,568

Resolved

Physical

Total 100%

Stakeholders Relationship Committee report for the year ended March 31, 2023
Activities of the Committee during the year

Frequency

Monitored and reviewed the Company’s performance in dealing with stakeholder grievances

A

Reviewed various measures and initiatives taken for reducing the quantum of unclaimed dividends and timely receipt ofdividend warrants / annual reports / notices by the shareholders of the Company

P

Reviewed the unclaimed dividend and equity shares transferred to the Investor Education and Protection Fund (IEPF) pursuant to
the IEPF Rules

P

Reviewed the annual audit report submitted by the RTA’s (Registrar & Share Transfer Agent) independent auditors on the annualinternal audit conducted on the RTA operations as mandated by SEBIA

Periodically provided updates to the Board

P

Reviewed the measures taken for effective exercise of voting rights by shareholders

A

Reviewed the adherence to service standards and security assessments adopted in respect of various services being rendered by
the RTAP

Undertook an annual performance evaluation of its own effectivenessA

Reviewed the Management’s investor / analyst interactions

Q

Reviewed the key investor relations updates

Q

Frequency

A Annually

Q Quarterly

P Periodically
Sd/Bengaluru
April 11, 2023

Infosys Integrated Annual Report 2022-23

Michael Gibbs
Chairperson

139Corporate governance report

Fairness and excellence

Board member evaluation

Two of the corevalues of our C-LIFE,
fairness and excellence
are evident in the workingsof the Board, its evaluationand the compensation paid
to the directors and theexecutive leadership.

One of the key functions of the Board is
to monitor and review the Board evaluation
framework. The Board works with the Nomination
and Remuneration Committee to lay down theevaluation criteria for the performance of the Chairman, theBoard, Board committees, and executive / non-executive /independent directors through peer evaluation, excluding thedirector being evaluated.

Independent directors have three key roles – governance, control
and guidance. Some performance indicators, based on which theindependent directors are evaluated, include:•

The ability to contribute to and monitor our corporate
governance practices•

The ability to contribute by introducing international bestpractices to address business challenges and risks•

Active participation in long-term strategic planning•

Commitment to the fulfillment of a director’s obligations andfiduciary responsibilities; these include participation in Boardand committee meetings.

To improve the effectiveness of the Board and its committees,
as well as that of each individual director, a formal and rigorous
Board review is internally undertaken on an annual basis.
The Board had engaged Egon Zehnder, a leadership advisory
firm on board matters, to conduct the Board evaluation for fiscal
2023. The evaluation process focused on Board dynamics, softer
aspects, committee effectiveness and information flow to theBoard or its committees, among other matters. The methodology
included various techniques such as questionnaires, one-onone discussions, etc. The recommendations were discussedwith the Board and individual feedback was provided. Progress
on recommendations from last year and the current year’s
recommendations were discussed. The aspects of succession
planning and committee composition were also considered. The
Board evaluation process was completed during fiscal 2023.
Further, the evaluation process was based on the affirmation
received from the independent directors that they met theindependence criteria as required under the Companies Act
2013, the Listing Regulations and the NYSE listing manual.

140

Board and executive leadershipcompensation
Executive leadership compensation

Our executive compensation programs encourage
reward for performance. A significant portion of
the executives’ total rewards is tied to the delivery of longterm corporate performance goals to align with the interestof the shareholders.
As required under the Listing Regulations, the Nomination
and Remuneration Committee recommends to the Board
the payment of remuneration to the senior management.
The Nomination and Remuneration Policy of the Company
is available on our website, at https://www.infosys.com/
investors/corporate-governance/documents/nominationremuneration-policy.pdf.
Non-executive and non-independent chairman’scompensation
Nandan M. Nilekani, Chairman, voluntarily chose not to receive
any remuneration for his services rendered to the Company.
Independent directors’ compensation
The compensation payable to the independent directors islimited to a fixed amount per year as determined and approvedby the Board, the sum of which does not exceed 1% of net profit
for the year, calculated as per the provisions of the Companies
Act, 2013. The Board reviews the performance of independent
directors on an annual basis.
The Board, while deciding the basis for determining thecompensation of the independent directors, takes various things
into consideration. These include global board compensation
benchmarking, participation of individual directors in Board andcommittee meetings, other responsibilities, such as membershipor chairmanship of committees, time spent in carrying out
other duties, roles and functions as prescribed in Schedule
IV of the Act, Listing Regulations and such other factors as
the Board deems fit.

Infosys Integrated Annual Report 2022-23

Shareholders at the 34th AGM held on June 22, 2015 approved
a sum not exceeding 1% of the net profit of the Company perannum, calculated in accordance with the provisions of Section
198 of the Companies Act, 2013, to be paid and distributed
among some or all of the non-executive directors of theCompany in a manner decided by the Board. This payment will
be made with respect to the profits of the Company for each year.

The amount payable to independent directors for the year
ended March 31, 2023 is `15.17 crore. Additionally, independent
directors are also reimbursed for expenses incurred in theperformance of their official duties. We confirm that none of the
non-executive directors received remuneration amounting to
50% of the total remuneration paid to non-executive directors
during the year ended March 31, 2023.

The aggregate amount of remuneration (commission) was arrived at using the following criteria:
Particulars

in ` crore

in US$

Fixed Board fee

1.23

150,000

Board / committee attendance fee(1)0.21

25,000Non-executive chairman fee

2.47

300,000

Chairperson – Audit Committee

0.41

50,000Members – Audit Committee

0.25

30,000Chairperson – other committees

0.25

30,000Members – other committees

0.16

20,000Travel fee (per meeting)

0.08

10,000Incidental fees (per meeting)(3)

0.01

1,000

Lead Independent Director

0.25

30,000(2)

Notes: 1 US$ = ` 82.17 as on March 31, 2023
(1)

The Company normally has five regular Board meetings in a year. Independent directors are expected to attend at least four quarterly Board meetings and the
AGM.

(2)

For directors based overseas, the travel fee shown is per Board meeting. This is based on the fact that additional travel time of two days will have to beaccommodated for independent directors to attend Board meetings in India.

(3)

For directors based overseas, incidental fees shown is per Board meeting. This fee is paid to independent directors for expenses incurred during their travel toattend Board meetings in India.

(4)

The payment is subject to deduction of tax at source (TDS) as required by applicable tax laws. If any tax is deducted at source as per applicable tax laws, acertificate as prescribed by law will be issued for the amount of tax withheld. The Company shall seek necessary and relevant tax documents as per applicablelaw in seeking waiver or reducing any applicable withholding taxes.

The Board believes that the above compensation structure is commensurate with global best practices in terms of remunerating nonexecutive / independent directors of a company of similar size, and adequately compensates for the time and contribution made by our
non-executive / independent directors.

Indemnification agreements

Materially significant related party transactions

We have also entered into agreements to indemnify our directors
and officers for claims brought against them to the fullest extent
permitted under applicable law. These agreements, among otherthings, indemnify our directors and officers for certain expenses,
judgments, fines and settlement amounts incurred by any such
person in any action or proceedings, including any action by or in
the right of Infosys Limited, arising out of such persons’ services
as our director or officer, expenses in relation to public relations
consultation, if required.

There have been no materially significant related party
transactions that may have potential conflict with the interests oflisted entity at large as provided in the Related Party Transactions
Policy, which is available on our website, at https://www.infosys.
com/investors/corporate-governance/Documents/related-partytransaction-policy.pdf.

Infosys Integrated Annual Report 2022-23

141

Corporate governance report
Remuneration to directors in fiscal 2023
in ` crore

Name of the director

Fixed salaryBasesalary(A)

Retiralbenefits(B)

Total fixedsalary(A+B)

Bonus /
incentives /variable pay

Perquisites
on account ofstock options
exercised(1)*Commission

Total

Non-executive and non-independent director
Nandan M. Nilekani(2)

–

–

–

–

–

–

–

6.67

0.45

7.12

18.73

30.60

–

56.45

D. Sundaram(4)

–

–

–

–

–

2.67

2.67

Kiran Mazumdar-Shaw(5)

–

–

–

–

–

2.45

2.45

Michael Gibbs

–

–

–

–

–

2.63

2.63

Bobby Parikh

–

–

–

–

–

2.02

2.02

Chitra Nayak

–

–

–

–

–

2.54

2.54

Govind Iyer(6)

–

–

–

–

–

0.49

0.49

Uri Levine

–

–

–

–

–

2.37

2.37

Executive director
Salil Parekh(3)Independent directors(7)Notes: The details in the above table are on accrual basis.
(1)

In accordance with the definition of perquisites under the Income-tax Act, 1961, the remuneration includes the value of stock incentives only on thoseshares that have been exercised during the period. Accordingly, the value of stock incentives granted during the period is not included. The number of stockincentives granted in fiscal 2023 is mentioned in the notes below. Independent directors are not entitled to any stock incentives.

(2)

Nandan M. Nilekani voluntarily chose not to receive any remuneration for his services rendered to the Company.

(3)a) Perquisites value of stock incentives on account of exercise of 1,24,783 Restricted Stock Units (RSUs) under the 2015 Plan and 73,962 RSUs under the 2019
Plan during fiscal 2023b) On the recommendation of the Nomination and Remuneration Committee, in accordance with the terms of his previous employment agreement, the Board
approvedi) the grant of 84,361 performance-based RSUs under the 2015 Plan effective May 2, 2022ii) the grant of 64,893 performance-based RSUs for fiscal 2023 under the 2019 Plan effective May 2, 2022. These will vest based on the Company’s achievementof certain performance criteria as laid out in the 2019 Plan.
These RSUs will vest in line with the previous employment agreement.
c) On the recommendation of the Nomination and Remuneration Committee and as approved by the shareholders, in accordance with the terms of his revised
employment agreement effective July 1, 2022, the Board approvedi) the grant of 1,40,228 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain
performance targets.
ii) the grant of 12,894 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of certain
environment, social and governance milestones as determined by the Board.
iii) the grant of 32,236 performance-based RSUs under the 2015 Plan effective August 1, 2022. These will vest based on the achievement of the Company’s
performance on cumulative relative TSR over the years and as determined by the Board.
iv) the grant of 19,341 annual time-based RSUs for fiscal 2023 under the 2015 Plan effective February 1, 2023
These RSUs will vest in line with the revised employment agreement.

(4)

D. Sundaram was appointed as Lead Independent Director effective March 23, 2023.

(5)

Kiran Mazumdar-Shaw retired as Lead Independent Director effective March 22, 2023.

(6)

Govind Iyer was appointed as Independent Director effective January 12, 2023.

(7)

Uri Levine to retire as Independent Director effective April 19, 2023.

* The RSUs were issued at par value.

142

Infosys Integrated Annual Report 2022-23

In accordance with the Listing Regulations, no employee, including key managerial personnel or director or promoter of a listed entity,
shall enter into any agreement for himself or on behalf of any other person, with any shareholder or any other third party with regard tocompensation or profit-sharing in connection with dealings in the securities of the Company, without prior approval from the Board aswell as from shareholders by way of an ordinary resolution. No such instances were reported during fiscal 2023.

Employment agreements with executive director
Name of the director

Effective date of
executive employment
agreement

Details of shareholders’ approvalon the agreements

Website links

Salil Parekh, Chief Executive
Officer and Managing Director

January 2, 2018 (Initial
appointment) and July 1,
2022 (reappointment)

The shareholders approved theinitial appointment and key termsof the agreement vide postal
ballot concluded on February 20,
2018 and amended the terms of
remuneration as per the resolution
passed at the AGM dated June 22,
2019. Further, the shareholders
approved the reappointmentof Salil Parekh including revised
remuneration payable to him at
the 41st AGM held on June 25, 2022.

Employment agreement including
key terms:
https://www.infosys.com/investors/
reports-filings/documents/
ceo-executive-employmentagreement2022.pdf
andhttps://www.infosys.com/investors/
reports-filings/Documents/
CEO-executive-employmentagreement2018.pdf
AGM notice:https://www.infosys.com/investors/
reports-filings/documents/agmnotice2019.pdf
andhttps://www.infosys.com/investors/
reports-filings/documents/agmnotice2022.pdf

Details of total fees paid to statutory auditors
The details of total fees for all services paid by the Company andits subsidiaries, on a consolidated basis, to the statutory auditor
and all entities in the network firm / network entity of which thestatutory auditor is a part, are as follows:in ` crore

Type of service

Fiscal 2023

Fiscal 2022

Audit fees (1)21

18

Tax fees

43

Others

1

1

Total

26

22

(1)

Infosys Integrated Annual Report 2022-23

Includes audit and audit-related services

143Corporate governance report

Our Company upholds
integrity and transparency in alltransactions and communications
to stakeholders. Our stakeholders are
our partners in the path to sustained
value creation and therefore, ourrelationship with stakeholders andclear communication with them isat the center of all disclosuresand reports.

Corporate

Infosys was incorporated in Pune, in
1981, as Infosys Consultants Private
Limited, a private limited company
under the Companies Act, 1956. In 1983,
the corporate headquarters were relocatedto Bengaluru. The name of the Company waschanged to Infosys Technologies Private Limitedin April 1992 and to Infosys Technologies Limitedin June 1992, when the Company became a public limited
company. We made an Initial Public Offering (IPO) in February
1993 and were listed on stock exchanges in India in June 1993.
Trading opened at ₹145 per share, compared to the IPO price of₹95 per share. In October 1994, we made a private placement of
5,50,000 shares at ₹ 450 each to Foreign Institutional Investors(FIIs), Financial Institutions (FIs) and body corporates.

Integrity andtransparency&
Relationship withstakeholders

The share data mentioned before isunadjusted for stock split and bonus
shares. In July 2003, June 2005 andNovember 2006, we issued secondarysponsored American Depositary
Receipts (ADRs) of US$ 294 million, US$
1.1 billion and US$ 1.6 billion, respectively.

During fiscal 2012, the name of the Company waschanged from Infosys Technologies Limited to Infosys
Limited to mark the transition from being a technology services
provider to a business transformation partner to our clients.
During fiscal 2013, we delisted our ADSs from NASDAQ, andlisted them in the New York Stock Exchange (NYSE), Euronext
London and Euronext Paris. During fiscal 2019, the Company
voluntarily delisted from Euronext London and Paris due
to low trading volume.

In March 1999, we issued 20,70,000 American Depositary Shares(ADSs) (equivalent to 10,35,000 equity shares of par value ₹10each) at US$ 34 per ADS under the ADS Program, and these ADSs
were listed on the NASDAQ National Market.

Infosys equity shares and ADSs are listed on NSE and BSE in Indiaand in NYSE, respectively, under the symbol “INFY”.

Bonus issues and stock split
18,00016,38416,000No. of shares

14,00012,00010,000

8,192

8,000
6,000

4,096

4,000
2,000
0

1,024

2,048

1

2

4

8

16

32

64

128

256

Prior to
1986

1986

1989

1991

1992

1994

1997

1999

2000

2005

2007

2015

2016

2019

Bonus

Bonus

Bonus

Bonus

Bonus

Bonus

Bonus

Stock
Split

Bonus

Bonus

Bonus

Bonus

Bonus

1:1

1:1

1:1

1:1

1:1

1:1

1:1

2:1

3:1

1:1

1:1

1:1

1:1

Corporate action
Note:
The above graph depicts the increase in the number of Infosys shares as a result of the Company’s bonus issues over the years and a stock split in 2000 in the ratioof 2:1. For example, if the investor / shareholder held one share in 1986 prior to the bonus issue and continued to hold it, he would have 16,384 shares today owing
to the bonus share issues and stock split.

144

Infosys Integrated Annual Report 2022-23

Dividend for fiscal 2023
Total
Dividend`16.50`34.00

Dividend cycle Interim 2022-23

Dividend cycle Final 2022-23

Record date

Oct 28, 2022

Record date

Jun 02, 2023

Payout date

Nov 10, 2022

Payout dateJul 03, 2023

`17.50Unclaimed dividend
Section 124 of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer
and Refund) Rules, 2016 (“the Rules”), as amended, mandates that companies transfer dividend that has remained unclaimed /un‑encashed for a period of seven years from the unpaid dividend account to the Investor Education and Protection Fund (IEPF).
Further, the Rules mandate that the shares on which dividend has not been claimed / encashed for seven consecutive years or more betransferred to the IEPF.
The following table provides a list of years for which unclaimed dividends and their corresponding shares would become eligible to betransferred to the IEPF on the dates mentioned below:
Year

Type of dividend

Dividend pershare (`)(1)

Date of declaration

Due date
for transfer

Amount (`)(2)

2015-2016

Final

14.25

June 18, 2016

July 17, 2023

1,42,78,457

2016-2017

Interim

11.00

October 14, 2016

November 19, 2023

1,22,82,105

2016-2017

Final

14.75

June 24, 2017

July 25, 2024

1,98,31,803

2017-2018

Interim

13.00

October 24, 2017

November 24, 2024

2,11,76,948

2017-2018

Final & Special

30.50

June 23, 2018

July 24, 2025

4,21,21,472

2018-2019

Interim

7.00

October 16, 2018

November 14, 2025

1,81,56,524

2018-2019

Special4.00

January 11, 2019

February 10, 2026

1,04,84,992

2018-2019

Final

10.50

June 22, 2019

July 21, 2026

2,52,78,908

2019-2020

Interim

8.00

October 11, 2019

November 11, 2026

2,17,17,633

2019-2020

Final

9.50

June 27, 2020

July 28, 2027

2,39,79,822

2020-2021

Interim

12.00

October 14, 2020

November 17, 2027

2,78,11,807
3,04,57,367

2020-2021

Final

15.00

June 19, 2021

July 20, 2028

2021-2022

Interim

15.00

October 13, 2021

November 16, 2028

3,37,73,488

2021-2022

Final

16.00

June 25, 2022

July 25, 2029

3,58,09,082

Interim

16.50

October 13, 2022

November 13, 2029

3,24,27,096

2022-2023(1)

Not adjusted for bonus issue(2)

Amount unclaimed as on March 31, 2023

In order to educate the shareholders and with an intent to protect their rights, the Company also sends regular reminders toshareholders to claim their unclaimed dividends / shares before it is transferred to the IEPF. Shareholders may note that both theunclaimed dividends and corresponding shares transferred to the IEPF, including all benefits accruing on such shares, if any, can beclaimed from the IEPF following the procedure prescribed in the Rules. No claim shall lie in respect thereof with the Company.

Dividend remitted to IEPF during the last three years
Year

Type of dividend

Dividend declared on

Date of transfer to IEPF

2022-23

Interim 2015-16

October 12, 2015

November 17, 2022

1,03,63,3202022-23

Final 2014-15

June 22, 2015

July 22, 2022

1,39,48,1022021-22

Interim 2014-15

October 10, 2014

November 12, 2021

82,69,260

2021-22

Final 2013-14

June 14, 2014

July 19, 2021

1,19,89,432

2020-21

Interim 2013-14

October 18, 2013

November 24, 2020

80,44,220

2020-21

Final 2012-13

June 15, 2013

July 20, 2020

95,13,423

Infosys Integrated Annual Report 2022-23

Amount transferred to IEPF

145

Corporate governance report
Shares transferred to IEPF
During the year, the Company transferred 1,48,274 and 2,98,879 shares on August 20, 2022 and December 14, 2022, respectively, due tothe dividends being unclaimed for seven consecutive years, in accordance with the IEPF rules. During the year, the Company received
applications from shareholders for claiming shares from the IEPF. The IEPF has settled applications pertaining to 26,666 shares torespective shareholders and IEPF holds 7,26,048 shares as on March 31, 2023 on account of transfer of shares under the IEPF Rules. During
the year, the Company also transferred ₹1,15,13,013.50 as corporate benefits (dividend) arising on shares already transferred to the IEPF.

Schedule of events
42nd Annual General Meeting

Date and time
June 28, 2023,
Wednesday
4:00 p.m. IST

Participation
throughvideo-conferencing
https://agm.onwings
pan.com/InfosysAGM

ModeVideo conference
and otheraudio-visual means

Webcasthttps://www.infosys.com/Investors/

E-voting dates
June 23, 2023 toJune 27, 2023

Financial calendar
The Company’s financial year begins on April 1 and ends on March 31. Our tentative calendar for declaration of results for the financial
year 2023-24 are as follows:
Jun 30, 2023

Sep 30, 2023

Dec 31, 2023

Mar 31, 2024

Quarter ending

Jul 20, 2023

Oct 12, 2023

Jan 11, 2024

Apr 18, 2024

Board meeting and earnings
release date

Jun 16, 2023 to
Jul 23, 2023

Sep 16, 2023 toOct 15, 2023

Dec 16, 2023 to
Jan 14, 2024

Mar 16, 2024 toApr 21, 2024

Trading window closure

Investor awarenessWe have provided a synopsis of the rights and responsibilities
of shareholders on our website, at https://www.infosys.com/
investors/shareholder-services/pages/faqs.aspx.

Share transfer system
SEBI, effective April 01, 2019, barred physical transfer of shares oflisted companies and mandated transfers only through demat.
However, investors are not barred from holding shares in physicalform. We request shareholders whose shares are in physicalmode to dematerialize their shares. Shareholders holding
shares in dematerialized mode have been requested to register
their email address, bank account details and mobile number
with their depository participants. Those holding shares inphysical mode have been requested to furnish PAN, nomination,
contact details, bank account details and specimen signature
for their corresponding folios. The folios shall be frozen, if anyof these details are not available on or after October 01, 2023.
Shareholders may contact the RTA at, einward.ris@kfintech.com
and also refer details at https://www.infosys.com/investors/
shareholder-services/investors-service.html.

Investor conferences / events held in fiscal 2023
Infosys holds press meet and investor / analyst calls after every quarterly results announcement, which is accessible to all theshareholders and general public. The Company also holds its Annual General Meeting, which is accessible to all the shareholders. The
details of these are sent to the stock exchanges and updated on the website. Infosys also participates in various sell-side / brokerarranged investor conferences where the Management interacts with investors in one-on-one or group meetings. The details of suchparticipation are sent to the exchanges and updated on the website.

3

9

1

7

1

7

Total

Total

Total

Total

Q1

Q2

Q3

Q4

12

Conferences / NDRs
146

1

9

10

8

8

Company events
Infosys Integrated Annual Report 2022-23

Investor grievances and investor contacts

Legal proceedings

We have a Board-level Stakeholders Relationship Committee to
examine and redress complaints by shareholders and investors.
The status of complaints is reported to the entire Board. The
Stakeholders Relationship Committee meets as often as required
to resolve shareholder grievances.

There are certain pending civil cases involving rival claims madeby parties seeking declaration of title and accrued benefits of theCompany’s disputed shares. Since the disputed shares relate to
the Company, Infosys Limited and share transfer agent KFin are
made pro forma defendants in these litigation matters. However,these matters are not material in nature.

We attended to most of the investors’ grievances and postal /electronic communications within a period of seven days fromthe date of receipt of such grievances. The exceptions have been
for cases constrained by disputes or legal impediments.
Shareholders may note that the share transfers, dividend
payments and all other investor-related activities are attended toand processed at the office of the Company’s RTA.

Commodity price risk or foreign exchange risk andhedging activities
For details of foreign exchange risk and hedging activities, refer
to form 20-F which is available at https://www.infosys.com/
investors/reports-filings/annual-report/annual-reports.html.

For any grievances / complaints, shareholders may contact the
RTA, KFin Technologies Limited at einward.ris@kfintech.com.
For any escalations, shareholders may write to the Company atinvestors@infosys.com and for queries on dividend tax, write
to us on dividend.tax@infosys.com. For addresses and contact
details for investor queries, RTA, depositary banks, depositories
for equity shares in India and stock exchanges, refer tothe Investor contacts.

Share capital
Holding as on March 31, 2022

Buyback of shares

420,67,38,641

414,63,12,293

6,04,26,348

ESOP allotment

22,47,751

Holding as on March 31, 2023

414,85,60,044

Category-wise shareholding as on March 31, 2023

Foreign Portfolio Investors

127,77,40,179

30.80%
Total

Others

18,10,67,296
Insurance Companies

47,54,56,450

414,85,60,044

4.36%
11.46%

16.05%

Mutual Funds

13.30%

Promoters & Promoter Group

12.19%

American Depositary Receipts

11.84%

66,58,05,972

55,16,82,338

50,57,90,851
Resident Individuals (Public)

49,10,16,958

Listing on stock exchanges
Codes

India

Global

NSE

BSE

NYSE

Exchange

INFY

INFY

INFY

Reuters

INFY.NSINFY.BO

INFY.K

Bloomberg

INFO ISINFO IBINFY US

Infosys Integrated Annual Report 2022-23

The listing fees for fiscal 2023 have been paid for all of the stock
exchanges in India and overseas.
ISIN Code for ADS: US4567881085
ISIN Code for Indian equity shares: INE009A01021

147

Corporate governance report
Shareholders holding more than 1% of the shares as on March 31, 2023
The details of shareholders (non-promoters and non-ADR holders) holding more than 1% (PAN-based) of the equity as on March 31,
2023 are as follows:

Name of the shareholder% (percentage of holding)Life Insurance Corporation of India

No. of shares
29,82,44,977

7.19%

SBI Mutual Fund

3.95%

16,38,20,022

Government of Singapore

2.29%

9,50,49,447

ICICI Prudential Mutual Fund

2.24%

9,31,07,863

NPS Trust

1.56%

6,49,22,206

HDFC Mutual Fund

1.50%

6,22,63,984

UTI Mutual Fund

1.47%

6,09,63,756

Government Pension Fund Global

1.27%

5,25,22,480

Vanguard Emerging Markets Stock Index Fund,
A Series of Vanguard International Equity Index Fund

1.18%

4,91,23,446

ICICI Prudential Life Insurance Company Limited

1.14%

4,71,80,165

Vanguard Total International Stock Index Fund

1.13%

4,68,52,400

SBI Life Insurance Company Limited

1.04%

4,31,98,008

Aditya Birla Sun Life Mutual Fund

1.02%

4,24,37,168

Distribution of shareholding as on March 31, 2023
No. of shares held No. of holders
1-1

1,95,271

2-10

9,86,323

11-50

9,64,745

51-1003,32,458

101-200

2,17,245201-500% to holders % to equity

No. of shares

0.00%

1,95,271

33.55%

0.14%

58,00,953

32.81%

0.63%

2,60,41,493

0.62%

2,57,97,439

7.39%

0.79%

3,26,58,619

1,45,266

4.94%

1.12%

4,64,85,673

501-1,000

50,963

1.73%

0.89%

3,67,16,723

1,001-5,000

35,145

1.20%

1.73%

7,18,80,337

5,001-10,000

4,893

0.17%

0.83%

3,44,27,217

10,001 and above

7,718

0.26%

Total

29,40,027

6.64%

11.31%

93.25%
100%

100%

386,85,56,319
414,85,60,044

Dematerialization of shares and liquidity% to total
equity99.90%
0.10%
Demat mode

Shareholders (1)Shares29,40,027

414,85,60,044

29,39,742

285

414,45,16,086

40,43,958

Physical mode
(1)

The number of shareholders based on demat accounts is 29,40,027 and based on PAN is 28,01,574 as on March 31, 2023. There will be a difference in thenumber of shareholders based on demat and PAN, since shareholders can have multiple demat accounts under a single PAN.

148

Infosys Integrated Annual Report 2022-23

Stock market data – exchanges in India
The monthly high and low quotations, as well as the volume of shares traded at the BSE, the NSE, and NYSE for the current
year are as follows:
2022-23Month

BSE
High (₹)

Low (₹)

NSE
Volume (A)High (₹)

Total volume

Low (₹)

Volume (B)(A+B) (No.)

April

1,909.95

1,550.40

75,67,806

1,910.30

1,550.00

17,06,96,670

17,82,64,476

May

1,589.25

1,399.50

1,19,68,147

1,589.40

1,399.25

17,60,39,201

18,80,07,348

June

1,555.05

1,367.20

63,75,880

1,555.00

1,367.15

13,91,44,802

14,55,20,682

July

1,555.00

1,410.90

1,01,07,973

1,555.70

1,410.65

11,51,24,860

12,52,32,833

August1,631.00

1,450.00

87,87,826

1,631.35

1,450.00

9,23,98,681

10,11,86,507

September

1,553.00

1,355.50

1,00,00,625

1,553.00

1,355.00

17,14,80,153

18,14,80,778

October

1,546.20

1,387.00

1,56,08,333

1,546.40

1,386.00

10,51,06,395

12,07,14,728

November

1,653.00

1,482.00

89,03,167

1,653.50

1,485.00

9,19,35,458

10,08,38,625

December

1,672.45

1,483.00

48,87,640

1,672.60

1,482.45

12,76,79,808

13,25,67,448

January

1,568.80

1,444.00

66,29,009

1,568.80

1,446.50

14,20,93,979

14,87,22,988

February

1,620.00

1,481.30

42,59,217

1,619.75

1,481.30

9,93,46,960

10,36,06,177

March

1,520.00

1,365.00

53,07,093

1,520.40

1,364.55

Total

10,04,02,716

14,26,69,535

14,79,76,628

157,37,16,502

167,41,19,218

The volume traded / outstanding shares (%) in the last three fiscals is as follows:
FiscalVolume (BSE)

Volume (NSE)

Volume (BSE +NSE)

2022-23343462021-223

44

47

2020-214

74

78

Note: The number of shares outstanding was 364,27,69,193 as of March 31, 2023. ADSs have been excluded for the purpose of this calculation.

Stock market data – NYSE
2022-23High ($)

Low ($)

April

25.13

19.75

May

20.79

17.90

June

19.64

17.52

Low (`)

Volume (No.)

1,902.59

1,507.12

25,58,78,594

1,582.53

1,386.36

23,45,73,990

1,525.40

1,367.26

19,46,36,089

High (`)

Month

July

19.60

17.63

1,556.63

1,405.99

20,06,18,614

August

20.60

18.28

1,637.08

1,462.18

14,92,08,756

September

19.41

16.39

1,546.01

1,330.54

25,57,33,063

October

18.88

16.82

1,559.87

1,374.96

21,47,44,671

November

20.36

18.08

1,660.56

1,497.75

12,95,92,391

December

20.57

17.69

1,668.23

1,464.91

16,09,69,127

January

19.11

17.47

1,547.34

1,440.51

15,98,90,015

February

19.59

17.93

1,618.13

1,481.86

14,56,85,967

March

18.34

16.59

1,500.21

1,369.34

20,27,80,820

Total

230,43,12,097

Note:
1 ADS = 1 equity share. The US dollar has been converted into the Indian rupee at the daily rates. The number of ADSs outstanding as on March 31, 2023, was50,57,90,851. The percentage of volume traded for the year at NYSE, to the total float was 456%.

Infosys Integrated Annual Report 2022-23

149

Corporate governance report
ADS premium compared to price quoted on NSE
(`)
1,800

(%)
2.0

1,500
1.0
1,200
0.0

900
600

-1.0
300
-

April

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

ADS(`)

1,666.83

1,497.30

1,462.72

1,487.23

1,567.82

1,429.90

1,476.27

1,572.73

1,540.35

1,507.73

1,564.84

1,428.40

Equity(`)

1,693.68

1,500.12

1,462.88

1,485.00

1,567.30

1,432.51

1,475.70

1,576.85

1,554.57

1,513.53

1,572.89

1,429.33

Premium/(Discount)

-1.6%

-0.2%

0.0%

0.1%

0.0%

-0.2%

0.0%

-0.3%

-0.9%

-0.4%

-0.5%

-0.1%

-2.0

Note: Represents monthly average of closing prices of our ADSs listed on NYSE compared to monthly average of closing prices of our equity shares listed on NSE.

Outstanding ADSs
Our ADSs, as evidenced by ADRs, are traded in the US on the NYSE under the ticker symbol ‘INFY’. The currency of trade of ADS in the US
is USD. Each ADS is represented by one equity share. The ADRs evidencing ADSs began trading on the NYSE, New York, from December
12, 2012. As on March 31, 2023, there were 1,15,944 record holders of ADRs evidencing 50,57,90,851 ADSs (1 ADS = 1 equity share).

Infosys share price versus the NSE Nifty 50 index
120

100

80

60
Apr-22

May-22Jun-22

Jul-22Aug-22

Sep-22Oct-22

Infosys

NIFTY 50

Nov-22

Dec-22

Jan-23

Feb-23Mar-23

Note: Infosys share price and NSE Nifty 50 index values on April 1, 2022 have been baselined to 100.

150

Infosys Integrated Annual Report 2022-23

Infosys share price versus the S&P BSE Sensex (Sensex)
120

100

80

60
Apr-22

May-22Jun-22

Jul-22Aug-22

Sep-22Oct-22

Infosys

BSE Sesnsex

Nov-22

Dec-22

Jan-23

Feb-23Mar-23

Note: Infosys share price and Sensex values on April 1, 2022 have been baselined to 100.

Credit ratings•

Quarterly and annual financial statements, standalone andconsolidated, along with segmental information, are also
posted on our website, at
https://www.infosys.com/investors/reports-filings/.

•

Earnings calls with analysts and investors are broadcast liveon our website and their transcripts are also published on
the website. The proceedings of the AGM are webcast live
for shareholders across the world. The AGM presentations,transcripts and video archives are available on our website, at
https://www.infosys.com/investors/reports-filings/.

•

Form 20-F, filed annually with the SEC, also contains detailed
disclosures and is made available on our website, at
https://www.infosys.com/investors/reports-filings/annualreport.html.

•

Other information, such as press releases, stock exchange
disclosures and presentations made to investors and analysts,
etc., is regularly updated on the Company’s website. The
shareholders can also visit www.sec.gov where the investors
can view statutory filings of the Company with the SEC.

There has been no change in the credit ratings of Infosys fromany of the agencies during the year.
Rating agency

RatingOutlook

Moody’s

Baa1

StableStandard & Poor’s

A

StableDun & Bradstreet

5A1

Condition: Strong

CRISILAAA

StableShareholders
Communication to the shareholders
The Company ensures that the following filings and reports areavailable on its website:•

The quarterly report, along with additional information andofficial news releases, are posted on our website, at
https://www.infosys.com/investors/reports-filings/. The
reports contain select financial data extracted from theaudited consolidated financial statements under the
IFRS (INR), and audited condensed consolidated financial
statements under the IFRS (USD). The quarterly / annual
results are generally published in at least one English
language national daily newspaper circulating in the wholeor substantially the whole of India (Business Standard) andin one regional daily newspaper circulating in Karnataka(Prajavani).

Registered office and global locations
The address of our registered office is Electronics City, Hosur
Road, Bengaluru 560100, Karnataka, India.
Our operations are spread across 274 locations in 56 countries.
We do not have any manufacturing plants, but havedevelopment centers and offices in India and overseas.
Visit https://www.infosys.com/investors/reports-filings/
documents/global-presence2023.pdf for details related toour global locations.

Subsidiaries
As on March 31, 2023, we have 28 direct subsidiaries and 70
step-down subsidiaries. The Company does not have any
material subsidiary.

Infosys Integrated Annual Report 2022-23

151

Corporate governance report
General body meetings
The details of the special resolutions passed during the last three Annual and / or Extraordinary General Meetings are as follows:Year ended

Date and time

Venue

Special resolution passed

Web link for webcast /transcripts

March 31,2022

41st AGM: June 25,
2022 at 4 p.m. IST

Held through videoconferencing /other audio-visualmeans

1. Reappointment of D. Sundaram as anindependent director

https://www.infosys.
com/investors/newsevents/annual-generalmeeting/2022/agm-2022transcript.pdf

March 31,2021

40th AGM: June 19,
2021 at 4 p.m. IST

Held through videoconferencing /other audio-visualmeans

1. Approval for the buyback of equity shares of
the Company
2. Reappointment of Michael Gibbs as anindependent director

https://www.infosys.
com/investors/newsevents/annual-generalmeeting/2021/agm-2021transcript.pdf

March 31,2020

39th AGM: June 27,
2020 at 4 p.m. IST

Held through videoconferencing /other audio-visual
means

None

https://www.infosys.
com/investors/newsevents/annual-generalmeeting/2020/agm-2020transcript.pdf

Extraordinary General Meeting
No extraordinary general meeting of the members was held during fiscal 2023.

Postal ballot
During the year, the Company passed two special resolutions through postal ballot through e-voting.
Date of postal
ballot notice

Resolution passed

Approval date

Scrutinizer

October 28,
2022

Approval for the Buyback ofEquity Shares of the Company

December 02, 2022

Hemanth, Holla & Co., (Membership https://www.infosys.com/
No. FCS 6374) (CP No. 6519)
investors/shareholderPracticing Company Secretaries.
services/postal-ballot.html

February 28,
2023

Appointment of Govind Iyer
(DIN: 00169343) as an
Independent Directorof the Company

March 31, 2023

Hemanth, Holla & Co., (Membership https://www.infosys.com/
No. FCS 6374) (CP No. 6519)
investors/shareholderPracticing Company Secretaries.
services/postal-ballot.html

Procedure for postal ballot
The postal ballot was carried out as per the provisions of Sections
108 and 110 and other applicable provisions of the Act, read with
the Rules framed thereunder and applicable circulars issued by
the Ministry of Corporate Affairs from time to time.

152

Link for postal ballot noticeand results

Details of special resolution proposed to be transacted
through postal ballot
None of the businesses proposed to be transacted at
the ensuing AGM requires passing of a special resolution
through postal ballot.

Infosys Integrated Annual Report 2022-23

Legal compliance

Details of non-complianceIn everything wedo, we comply withthe law of the land. All
disclosures and policies to thiseffect, including details of noncompliance, regulatory orders,certifications and complaints,
are made available in thiscorporate governancereport.

No penalty has been imposed by any stock
exchange, SEBI or SEC, nor has there been
any instance of non-compliance with any legal
requirements, or on matters relating to the capital
market over the last three years.

Regulatory orders
There were no regulatory orders pertaining to theCompany for fiscal 2023.

Complaints pertaining to sexual
harassment

The details of complaints filed, disposedof and pending during the financial year
pertaining to sexual harassment are provided in
the Business Responsibility and Sustainability Report ofthis Integrated Annual Report.

Prevention of insider trading

As required by the Listing Regulations, the CEO and CFO
certification is provided in this Integrated Annual Report.

The Company has amended the Code on fair disclosure andinvestor relations effective April 13, 2023. The policy andprocedures for inquiry in case of leak of Unpublished Price
Sensitive Information (UPSI) or suspected leak of UPSI is forming
part of the Code of Conduct for prohibition of insider trading.

Code of conduct

Compliance with discretionary requirements

CEO and CFO certification

In compliance with the Listing Regulations and the Companies
Act, 2013, the Company has adopted the Code of Conduct andEthics (“the Code”). The Code is applicable to the members of theBoard, the executive officers and all employees of the Company
and its subsidiaries. The Code is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/codeofconduct.pdf.

The Company has also ensured the implementation of nonmandatory items such as:

All members of the Board, the executive officers and senior
officers have affirmed compliance to the Code as on March 31,
2023. A declaration to this effect, signed by the CEO & MD and
the CFO, forms part of the CEO and CFO certification.

Establishment of vigil / whistleblower mechanism
The Company has established a mechanism for directors andemployees to report concerns about unethical behavior, actualor suspected fraud, or violation of the Code. It also provides foradequate safeguards against the victimization of employees whoavail the mechanism, and allows direct access to the chairpersonof the Audit Committee in exceptional cases. During the year, no
person was denied access to the Audit Committee.
The Whistleblower Policy is available on our website, at
https://www.infosys.com/investors/corporate-governance/
documents/whistleblower-policy.pdf.

Infosys Integrated Annual Report 2022-23•

Separate posts of Chairman, and CEO & MD, with theprovision for reimbursement of expenses in the performanceof official duties•

The Company has provided a separate office within the
Company premises for the Chairman.

•

Unmodified audit opinions / reporting•

Internal auditor reporting directly to the Audit Committee

Certificate of non-disqualification of directors
Makarand M. Joshi of Makarand M. Joshi & Co., Company
Secretaries, has issued a certificate as required under the Listing
Regulations, confirming that none of the directors on the Boardof the Company has been debarred or disqualified from being
appointed or continuing as director of companies by the SEBI /Ministry of Corporate Affairs or any such statutory authority. The
certificate is enclosed with this section as Annexure A.

Auditors’ certificate on corporate governance
The auditor’s certificate on corporate governance is provided as
Annexure 4 to the Board’s report.

153

Corporate governance report
Annexure A: Certificate of non-disqualification of directors
CERTIFICATE[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the Securities Exchange and Board of India(Listing Obligations and Disclosure Requirements) Regulations,2015]
To,
The Members,
Infosys Limited
Electronics City, Hosur Road,
Bengaluru, Karnataka-560100, India
We have examined the relevant disclosures provided by the Directors (as enlisted in Table A) to Infosys Limited bearing
CIN: L85110KA1981PLC013115, having registered office at Electronics City, Hosur Road, Bengaluru, Karnataka-560100, India (hereinafterreferred to as “the Company”) for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para C
Clause 10 (i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our knowledge and based on the following:i.

Documents available on the website of the Ministry of Corporate Affairs;ii.

Verification of Directors Identification Number (DIN) status on the website of the Ministry of Corporate Affairs;iii.

Disclosures provided by the Directors (as enlisted in Table A) to the Company; andiv.

Debarment list of the Bombay Stock Exchange and the National Stock Exchange,

we hereby certify that none of the Directors on the Board of the Company (as enlisted in Table A) have been debarred or disqualified
from being appointed or continuing as directors of the Company by the Securities and Exchange Board of India, Ministry of Corporate
Affairs or any such other statutory authority as on March 31, 2023.
Table A
Name of the Directors

Director Identification Number (DIN)

Date of appointment in the Company

Nandan M. Nilekani

00041245

August 24, 2017

Salil Parekh

01876159

January 02, 2018

D. Sundaram

00016304

July 14, 2017

Michael Gibbs

08177291

July 13, 2018

Bobby Parikh

00019437

July 15, 2020

Chitra Nayak

09101763

March 25, 2021

Uri Levine08733837

April 20, 2020

Govind Iyer

00169343

January 12, 2023

For Makarand M. Joshi & Co.
Company Secretaries

Sd/Place: Mumbai
Date: April 13, 2023

Makarand M. Joshi
Partner

FCS No. 5533
CP No. 3662
PR: 640 / 2019
UDIN: F005533E000085437

154

Infosys Integrated Annual Report 2022-23

Statutory reports

Investor contacts
For queries relating to financial statements
Jayesh Sanghrajka

For queries relating to Business Responsibility andSustainability Report

EVP, Deputy Chief Financial Officer

Aruna C. Newton

Tel: +91 80 2852 1705 Fax: +91 80 2852 0754

VP – Head – Diversity and Inclusion

Email : jayesh.sanghrajka@infosys.com

Tel: +91 80 2852 0261

Investor correspondence
Sandeep Mahindroo

Email: arunacnewton@infosys.com

Registrar and share transfer agents

SVP, Financial Controller & Head – Investor Relations

KFin Technologies Limited

Tel: +91 80 3980 1018 Fax: +91 80 2852 0754

Unit: Infosys Limited, Selenium Tower B, Plot Nos. 31 & 32,

Email : sandeep_mahindroo@infosys.com

For queries relating to shares / dividend / compliance

Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad 500032

A.G.S. Manikantha

Contact person

VP, Company Secretary

C. Shobha Anand

Tel: +91 80 4116 7775 Fax: +91 80 2852 0754

Deputy Vice President,

Email: investors@infosys.com

KFin Technologies Limited
Toll Free Number 1800-309-4001
Email: einward.ris@kfintech.com

Depositary bank (ADS)
United States

Custodian in India (ADS)

Deutsche Bank Trust Company Americas

ICICI Bank Limited

Corporate Bank - Depositary Receipts
Floor 17S, 1 Columbus Circle
New York NY, USA 10019
Tel: +1 212 250 2500

India
Deutsche Bank AG, Filiale Mumbai

Securities Market Services
1st Floor, Empire Complex, 414,
Senapati Bapat Marg,
Lower Parel, Mumbai 400 013,
Maharashtra, India.
Tel : +91 82919 02703

Corporate Bank – Depositary Receipts
The Capital, C-70, G BlockBandra Kurla Complex, Mumbai 400 051, India
Tel: +91 22 7180 4875

Depository for equity shares in India
National Securities Depository Limited
Trade World, ‘A’ Wing, 4th Floor
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013, India
Tel: +91 22 2499 4200

Infosys Integrated Annual Report 2022-23

Central Depository Services (India) Limited
Marathon Futurex, A-Wing,
25th floor, Mafatlal Mills Compound
NM Joshi Marg, Lower Parel (East), Mumbai 400013
Tel: +91 22 23002041/23002033

155

Investor contacts
Addresses of stock exchanges
In India

Outside India

National Stock Exchange of India Ltd.

New York Stock Exchange

Exchange Plaza, C-1, Block G,

11 Wall Street, New York, NY 10005, US

Bandra Kurla Complex,

Tel: +1 212 656 3000

Bandra (E), Mumbai – 400 051
Tel: (022) 26598100-14 / 66418100
BSE Ltd.
Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai 400 001, India
Tel: +91-22-22721233/4, +91-22-66545695 (Hunting)156

Infosys Integrated Annual Report 2022-23

Statutory reports

Risk management report“ Risks related to the geo-political changes, uncertainties in the economy, supply chain constraints, talentavailability, technology disruption and inflation have impacted businesses across the world during the fiscal
year. Our enterprise risk management processes were instrumental in keeping the Company focused on our
most important priorities toward all our stakeholders.”
Deepak Bhalla
EVP – Chief Risk Officer

Note: The risk-related information outlined in this section may not be exhaustive. The discussion may contain statements that are forward looking in
nature. Our business is subject to uncertainties that could cause actual results to differ materially from those reflected in the forward looking statements.
If any of the risks materializes, our business, financial conditions or prospects could be materially and adversely affected. Our business, operating results,financial performance, or prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe arematerial. Readers are advised to refer to the detailed discussion of risk factors and related disclosures in our regulatory filings and exercise their own
judgment in assessing risks associated with the Company.

Our Enterprise Risk Management (ERM) function enables
the achievement of the Company’s strategic objectives byidentifying, analyzing, assessing, mitigating, monitoring andgoverning any risk or potential threat to these objectives. While
this is the key driver, our values, culture and commitment tostakeholders – employees; customers; investors; regulatory
bodies; partners and the community around us – are thefoundation for our ERM framework. The systematic and proactive
identification of risks, and mitigation thereof, enables ourorganization to boost performance with effective and timely
decision-making. Strategic decisions are taken after carefulconsideration of primary risks, secondary risks, consequential
risks and residual risks. The ERM function also enables effective

resource allocation through structured qualitative andquantitative risk impact assessment and prioritization basedon our risk appetite. Our ERM framework also enables theidentification of underlying opportunities during risk assessment,
which are then further evaluated and actionized by the business.
Our ERM framework encompasses all of the Company’s risks– strategy and strategy execution; operational; and legal andcompliance risks. Any of these categories can have internal orexternal dimensions. Hence, appropriate risk indicators are used
to identify these risks proactively. We take cognizance of risks
faced by our key stakeholders and their cumulative impact while
framing our risk responses.

Strategy and strategy execution

The risks arising out of the choices we have made in defining our strategy and the risks to thesuccessful execution of our strategy are covered in this category. For example, risks inherent to ourindustry and our competitiveness are analyzed and mitigated through strategic choices of target
markets, our market offerings, business model and talent base.

Operational

The risks affecting our policies, procedures, people and systems, thereby impacting service delivery
or operations, or compromising our core values or business practices are covered in this category.
For example, risks such as inefficiencies in internal processes, human rights, business activity
disruptions due to natural calamities, climate change events, human conflicts, system failures andcybersecurity attacks.

Legal and compliance

The risks arising out of threats posed to our financial, organizational, or reputational standing
resulting from litigations, non-conformance with laws, regulatory or geo-political developments,
code of conduct and contractual compliances are covered in this category.

Integrated Enterprise Risk Management Framework
We have adopted an integrated ERM framework that is implemented across the organization by the risk management office. Our
ERM framework is developed by incorporating the best practices based on COSO and ISO 31000 and then tailored to suit our uniquebusiness requirements.
Infosys Integrated Annual Report 2022-23

157

Risk management report
Integrated Enterprise Risk Management Framework

STRATEGYPERFORMANCE EVALUATION AND RISK MANAGEMENT

GOVERNANCE

Strategy andbusiness objectives

Risk-enabled decision-making

8-layer governance

Level 2 Risk
Level 3 Risk

ps

Level 4 Risk

Secondary and consequential
risk assessment
Residual risk assessment
and decision-making
Auditing, monitoring
and reportingpa
Im

Granularity

Treatment, mitigation andcontrol implementationct

Level 5 Risk
Derivedgoals

DeliveryLevel 1 Risk

Risk
assessment

Opportunity

Operational
Strategy execution

Business enabling functionisk
fr

Legal and compliancegrouStrategic andstakeholder
goals

Risk management

Sales

Values andcultureTypeoVision andmissions

Risk identification

Board of Directors
Risk Management
Committee (RMC)of the Board
Cybersecurity
Sub-Committee
Risk councils
Office ofrisk management
Sub-risk councils
Unit risk councils

Risk governanceand disclosures

Project andaccount risk teams

Aligned lines of defense
iGRC platform
Intelligent risk analytics – Live Enterprise

Salient features of our Enterprise Risk Management program
Our ERM program adopts unique methods to identify risks, evaluate potential impact and promote risk awarenessacross the organization.

Secondary, consequential and residual risksIntelligent risk analytics – Live Enterprise

Secondary risks are threats that could impede the mitigationof primary risks. Consequential risks are the unintended
consequences of primary mitigation, and residual risks arethose risks that are left over after mitigation.

Aggregation and accumulation
Exposure for same risks are aggregated as it goes up thehierarchy. This provides enterprise-wide viewto the leadership. Cumulated risk view is also provided tounderstand total exposure arising out of all risks at a unit level.

Process risk frameworks
Process-specific risk frameworks have beendeveloped for decision-making,for example, frameworks for customer risk,
vendor risk, contractual liability, contractual
weighted-risk and credit risk.

158

Internal and external risk and performance indicators,
loss incidents are used real-time to identify, analyze andassess potential issues that could negatively impact
strategic goals.

Enterprise
Risk Management
programSalient features

RISC360 : iGRC
RISC360 is the Company’s Governance, Risk management andCompliance (GRC) program that combines three lines of defense
under one umbrella. This enables risk-based decision-making andauditing. The Company has implemented a technology platform,
iGRC, to provide a consolidated view of risks to strategic goals.

Risk culture
Our risk culture encourages open and upward communication.
Coupled with our belief systems and core values, this drives
behavior, guides daily activities and decision-making throughout
the organization. We encourage sharing of knowledge and bestpractices, continuous process improvement and a strong
commitment to ethics and integrity.

Infosys Integrated Annual Report 2022-23

Highlights of fiscal 2023
During fiscal 2023, we extended the adoption of the integrated
ERM framework across the organization, strengthening our risk
management program and enhancing the risk culture. The risk
office played a key role in identifying, assessing and managing
primary and secondary risks – so as to ensure the smoothdelivery of services to our clients, transparent communication
with all stakeholders and fulfilling our social responsibility while
ensuring employee safety and health. The risk office assessed,monitored and reported on risks related to geo-politicalscenarios; uncertainties in the economy; inflation; technology

disruption and innovation; talent availability; cybersecurity; dataprotection and privacy; ESG; contractual liabilities; and complex
and evolving regulatory environment.
While the Company tracks several risks to its business asmentioned in the Management’s Discussion and Analysis
section of this Integrated Annual Report, the key risks andemerging risks are described below along with the Company’s
approach to mitigate them.

Key / Emerging risks

Impact on Company

Mitigation / Opportunity

Geo-political, macroeconomic or health
events•Unfavorable geo-political, economic or health events
may result in currency volatility and reduced spend
on technology products and services which may
adversely impact demand for our offerings which inturn may impact our growth and profitability.
Emerging risk aspect: Geo-political, economic or
health events are dynamic in nature and constantly
evolving. Uncertainty about new changes therefore
sometimes makes it difficult to predict and assess theimpact.
Impacted capitals: Financial, Social & Relationship and
Human

•

If we are unable to differentiate our offerings andmanage customer expectations in times of intensecompetition in the market for technology services,
this could affect our win rates and pricing, reduce ourmarket share and decrease our revenue and profits.
Impacted capitals: Financial and Intellectual•

Emerging risk: Not having the right framework
and approach to identify, invest in, incubate andoperationalize new services and offerings that are
in line with technology changes, client preferences
and market expectations may disrupt our value
proposition and reduce our relevance to customers,
impacting our revenue and profitability. The speed
and nature of technological changes make it difficult
to predict the trend.
Impacted capitals: Financial, Human and Intellectual

•
•
•
•

If we are unable to hire, engage and retain technology
and management talent, manage leadership
succession and transition, respect and protect humanrights, continuously evolve our hybrid work modelin response to changing needs and expectations, it
could impact our reputation, ability to staff projects or
execute large and complex programs, or optimize cost
structures.
Impacted capitals: Financial, Human and Intellectual••

Cyber attacks that breach our information networkor failure to protect sensitive and confidential
information of our stakeholders in accordance withapplicable laws and contractual obligations may
adversely impact our operations and client satisfaction
or result in significant regulatory penalties.
Impacted capitals: Financial, Human, Intellectual and
Manufactured

•
•

•

•
Commoditization ofservices and heightenedcompetitive landscape••Technology disruption
and innovation••
Talent supply constraints
and Hybrid working
model

•

•
Cybersecurity••

Infosys Integrated Annual Report 2022-23

•

•
•

•
•
•
•

•
•
•

•
•

•
•
•
•

Broad-based growth to reduce concentration inany single region, client or industry
Operational agility to assess and respond tosituations, including enablement of remote
working, working out of multiple DCs /locations, etc.
Currency hedging
Opportunity – Clients are looking for IT projects
which can help them take out costs.

Differentiation though innovation and industry
solutions
Increased automation
Investment in launching innovative new offerings
A broad portfolio of interconnected services andsolutions
Focused growth of digital capabilities
Innovation framework
Investments in research and development
Robust alliance strategy
Consulting and industry / domain knowledge led
solutions
Reskilling program for employees into newer
technologies and methodologies
Large deal program
Opportunity – Identify, develop and deploy
new offerings to customers leveraging nextgeneration technologies.
Employee engagement and support
Holistic employee retention and recognition
efforts
Focus on career and leadership development
Hybrid operational model that balances client
requirements, evolving employee preferences,
legal requirements and information security risks

Robust cybersecurity framework and controls
Multi-layered governance process with executive
and Board oversightContinued investment in technologies
Readiness to respond to incidents
Awareness programs and trainings
Opportunity – Cybersecurity services to thecustomer
159

Risk management report
Key / Emerging risks

Impact on Company

Mitigation / Opportunity

Data protection andprivacy

•

•
•
•

•

Cost inflation / Inability
to improve margin

•
•

ESG

•

•
•
Contractual liabilities••

Complex and evolving
regulatory environment

•

•

•

Failure to protect personal and sensitive informationof our stakeholders in accordance with applicablelaws may impact our operations or result in significant
regulatory penalties.
Impacted capitals: Financial, Human and Intellectual•••

Robust data privacy framework and controls
Privacy by design
Multi-layered governance process with executive
and Board oversight
Preparedness for response to incidents
Awareness programs and trainings
Region-specific data protection controls andawareness campaigns

If we are unable to run our operations effectively and•with sustainable cost levers, our long-term profitability
may be adversely affected.
•
Impacted capitals: Financial

Effective operations with sustainable cost
optimization levers
Automation and planned capex program focusedon technology adoption

If we are unable to demonstrate the outcome of
our ESG program covering various areas such as
climate change, GHG reductions, digital skilling,empowering local communities, diversity, responsible
supply chains, compliance and governance, etc., ouroperations, reputation, access to capital and longerterm financial stability could be adversely impacted.
Emerging risk aspect: Expectations on ESG maychange in future due to evolving stakeholders'
expectations and disclosure requirements.
Impacted capitals: Financial, Human, Intellectual,
Natural, Social & Relationship and Manufactured••

ESG 2030 goals and execution roadmap
Board level governance and oversight throughdedicated ESG committee of the Board
Opportunity – Climate change related solutions
and services to the customer.

Risk of clients demanding more favorable terms
including onerous clauses related to the liability andour inability to adhere to contractual obligations
with customers may lead to litigations, fines, andmay adversely impact our reputation, revenue andprofitability.
Impacted capitals: Social & Relationship and Financial•

If we are not able to comply with the existing complex
regulatory landscape (e.g., immigration, wages, tax,
sanctions), it could result in investigations, regulatoryinquiries, litigation, fines, and negative client
sentiments.
Emerging risk aspect: Evolving regulatory compliance,
corporate governance and public disclosure
requirements add uncertainty to our compliancepolicies.
Impacted capitals: Financial, Human, Intellectual,
Social & Relationship and Natural

•

•

•
•
•
•

•
•
•

Engaging clients on contractual terms throughdedicated in-house teamContract legal playbook with risk framework
Multi-layered governance process for contract
approval
Dedicated teams to adhere, monitor and audit
contractual obligations
Comprehensive Board level monitoring,
reporting and governanceComprehensive compliance framework, controls
and program
Awareness programs and trainings
Periodic compliance certification
Comprehensive monitoring, reporting andgovernance including Board oversight

Cybersecurity risk management
Cyber risks, being one of the key risks, is managed through multilayered controls with a defense-in-depth approach starting fromthe thoughtfully-crafted cybersecurity strategy, supplemented
by policies, processes and controls (preventive, detective, andcorrective). Our strategy is focussed on four areas: transparency
and experience; continual improvement and compliance; cyber
resilience; and building and maintaining a positive cybersecurity
culture within the organization.

160

A high-level working group, the enterprise Information Security
Council (ISC), has been established, which is responsible forgoverning and overseeing the Information Security Management
System (ISMS) at Infosys. ISC focuses on establishing, directing,monitoring, and executing the information security programwith representation from various departments and business
units at Infosys and reports to the Operational Risk Council
highlighting key risks to the executive leadership.

Infosys Integrated Annual Report 2022-23

Statutory reports

Business Responsibility and Sustainability Report

Infosys has always placed sustainability at the heart ofits business approach. Our ability to fulfil and exceed our
responsibilities to our stakeholders is a testament to ourcommitment. We have balanced our business successwith unwavering focus on exemplary governance andresponsiveness to the needs of the environment and society.
As an early proponent of responsible business, we readily
embraced our commitment to integrate environmental,social and governance (ESG) factors into our operations.
In fiscal 2013, we were among the first companies to publish
the Business Responsibility Report (BRR).

Infosys Integrated Annual Report 2022-23

Infosys has adopted the Business Responsibility andSustainability Report (BRSR) for fiscal 2023 to provide
enhanced disclosures of our ESG practices and priorities.
The BRSR follows the NGRBC principles on the social,environmental and economic responsibilities of business.
Our BRSR includes our responses to questions about ourpractices and performance on key principles defined byRegulation 34(2)(f) of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015, as amended fromtime to time, which cover topics across the ESG dimensions.

161

I Company details
1. Corporate Identity Number (CIN) of the company

L85110KA1981PLC013115

2. Name of the company

Infosys Limited

3. Year of incorporation

July 02, 1981

4. Registered office address

Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India

5. Corporate address

Electronics City, Hosur Road, Bengaluru, Karnataka 560 100, India

6. E-mail id

askus@infosys.com

7. Telephone+91-80-2852 0261

8. Website

www.infosys.com

9. Financial year for which reporting is being done

April 2022-March 2023

10. Name of the Stock Exchange(s) where shares are listed

In India, company’s equity shares are listed on the* BSE Limited (BSE)* National Stock Exchange of India Limited (NSE)The ADSs are listed on the New York Stock Exchange in the US

Infosys Integrated Annual Report 2022-23

11. Paid-up Capital (1)`2,074 crore

12. Name and contact details (telephone, email address) of the person who may becontacted in case of any queries on the BRSR report

ARUNA C. NEWTON
Vice President
Tel: 91 80 2852 0261
Email: arunacnewton@infosys.com

13. Reporting boundary - Are the disclosures under this report made on a standalone
basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all theentities which form a part of its consolidated financial statements, taken together).

The disclosures under this report are made on a consolidated basis, unless otherwise
specified.

(1)

As per the Standalone financial statements under Ind AS

Business Responsibility and Sustainability Report

162

Section A: General Disclosure

Infosys Integrated Annual Report 2022-23

II Products / services
14. Details of business activities (accounting for 90% of the turnover)
S. No.

Description of main activity

Description of business activity% of turnover of the entity

1

Software and IT consulting (GICS classification – Information
Technology – Software and Services)

Software application development andmaintenance, IT consulting. Further
details are provided in the Management
Discussion and Analysis section of thisIntegrated Annual Report.

93.7

15. Products / services sold by the entity (accounting for 90% of the entity’s turnover)
S. No.

Product / service

1

Software application development and maintenance,
IT consulting

NIC code% of total turnover contributed

620

93.7

Total

III Operations
16. Number of locations where plants and / or operations / offices of the entity are situatedLocation

Number of plants

Number of offices

National

NA

56

International

NA

218

274

17. Markets served by the entitya.
Locations

NumberNational (No. of states)

12

International (No. of countries)

82

b. What is the contribution of exports as a percentage of the total turnover of the entity?
97.2% (1)(1)

Based on Standalone financial statements under Ind AS

c. Types of customers and beneficiaries
Business to business163

18. Details as at the end of fiscal:a. Employees
S. No.

Particulars

Total (A)

Employees

MaleFemaleNo. (B)% (B / A)

No. (C)% (C / A)

1

Permanent (D)3,43,234

2,07,879

60.56

1,35,355

39.44

2

Other than permanent (1) (E)24,891

20,001

80.35

4,890

19.65

3

Total employees (D + E)

3,68,125

2,27,880

61.90

1,40,245

38.10

No. (B)% (B / A)

No. (C)% (C / A)

1,009

74.4

348

25.6

–

–

–

–

1,009

74.4

348

25.6

Differently-abled employees (2)1Permanent (D)

1,357

2

Other than permanent (E)–3Total employees (D + E)

1,357

As on March 31, 2023
(1)

Other than permanent employees includes contractors. The entire workforce of Infosys is categorized as ‘Employees’ and none as ‘Workers’. Therefore, the information required in all sections in the‘Workers’ category not applicable to Infosys.

(2)

Employees who have voluntarily disclosed their disability.

19. Participation / Inclusion / Representation of women (including differently-abled)
Total (A)No. and percentage of females
No. (B)% (B / A)

Infosys Integrated Annual Report 2022-23

Board of Directors

8

1

12.50

Key Management Personnel (1)

3

0

–

As on March 31, 2023
(1)

Key Management Personnel are Chief Executive Officer and Managing Director (CEO & MD), Chief Financial Officer (CFO) and Company Secretary (CS)Business Responsibility and Sustainability Report

164

IV Employees

Infosys Integrated Annual Report 2022-23

20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)
Turnover rate in fiscal 2023 (In %)Turnover rate in fiscal 2021 (In %)Male

Female

Total

Male

Female

Total

Male

Female

Total

21.1

20.6

20.9

28.7

26.1

27.7

11.3

10.2

10.9

Permanent employees
Other than permanent employees

Turnover rate in fiscal 2022 (In %)We do not calculate turnover of contract staff as they are hired for a fixed contract period, by design.

This table represents percentage of voluntary attrition (LTM – IT Services)

V. Holding, subsidiary and associate companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Refer to Annexure 1 to the Board’s Report of this Integrated Annual Reportfor information on holding / subsidiary / associate companies / joint ventures.

VI. CSR Details
22. (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013:

Yes(ii) Turnover (in ` crore) (1)

1,24,014(iii) Net worth (in ` crore) (1)67,745(1)

As per the standalone financial statements under Ind AS

VII. Transparency and disclosures compliances
23. Complaints / grievances on any of the principles under the National Guidelines on Responsible Business Conduct
Infosys’ stakeholders include our investors, clients, employees, vendors / partners, governments, and the community. A strong whistleblower policy and non-retaliation clauseis available to all our stakeholders. Our Whistleblower Policy is available at https://www.infosys.com/investors/corporate-governance/Documents/whistleblower-policy.pdf. For
details on investor complaints received and resolved, refer to the ‘Investor complaints’ available in the Corporate governance report of this Integrated Annual Report. For details on
employee grievances and resolution, refer to Question 6 of Principle 5. More details are available on our ESG microsite at https://www.infosys.com/about/corporate-responsibility/
social/employee-wellbeing/resolution-hubs.html.

165

Infosys Integrated Annual Report 2022-23

S.
No.

Material issue
identified

Indicate
whether risk
or opportunity(R / O)

Rationale for identifying the risk /opportunity

In case of risk, approach to adapt or mitigate

Financial implications of the risk
(Indicate positive or negative
implications)

1

Environment :ClimatechangeRisk– Climate change risks are increasingly
manifesting in our business as
strategic risks, physical risks, andtransitional risks (market andcompliance) that, if not managed
adequately, could adversely affectour operations, reputation, andprofitability.

– A holistic approach towards carbon
neutrality each year including energy
efficiency, renewable energy and carbon
offsets– Enabling the creation of resilient physicalinfrastructure to address extreme weather
conditions, while maintaining operational
efficiencies

Negative : Increased operating
costs in meeting the environmental
standards.

2

Environment :Engagingclients on
climateactions
through oursolutions

Opportunity– Increased revenue throughdevelopment and / or expansionof services to help our customers
manage their climate change risks.
– Savings through lower-emission
energy sources– Global leadership in addressing
climate change through advocacy

3Societal :Facilitating
best-in-classemployeeexperience

Risk– Inability to facilitate best-in-classemployee experience may impact
our ability to attract, hire, train,
engage and retain talent.

4

Societal :Tech for Good
platforms andsolutions for
e-governance,
healthcare
and education

Opportunity– The development and adoption ofadvanced technologies, including
smart automation and artificial
intelligence, have the potential
to increase productivity and GDP
growth and solve larger challenges
for the common good, while
facilitating the achievement of
the UN SDGs. Digital technologies
and platforms have already beenused successfully in the consumer
technology space, and there is an
opportunity to leverage these toensure social good.

Positive : Scope to improve Infosys’
competitiveness and capitalizeon the shifting client preferencesby leveraging our expertise insustainability, low-carbon transition,and digital / IT to help our clients intheir sustainability and low-carbon
journeys– Employee engagement and support– Holistic employee retention and recognition
efforts– Focus on career and leadership development– Occupational health and safety measures

Negative : Impact on employer
reputation, increased cost of
talent, etc.

Positive : Given the shortage ofdigital talent, there is immense scopeto create a talent pool to accelerate
the digital transformation journey ofour customers.

Business Responsibility and Sustainability Report

166

24. Overview of the entity’s material responsible business conduct issues. Please indicate material responsible business conduct and sustainability issues pertaining toenvironmental, social and governance matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate
the risk along with its financial implications, as per the following format

Infosys Integrated Annual Report 2022-23

S.
No.

Material issue
identified

Indicate
whether risk
or opportunity(R / O)

Rationale for identifying the risk /opportunity

In case of risk, approach to adapt or mitigate

Financial implications of the risk
(Indicate positive or negative
implications)5

Governance :Dataprivacy andinformation
management

Risk– Cyber attacks that breach our
information network and / or failure
to protect sensitive and confidential
information of our stakeholders inaccordance with applicable laws andcontractual obligations may impact
our operations and client satisfaction
or result in significant regulatory
penalties.

– Robust cybersecurity and data privacy
frameworks and controls– Multi-layered governance process withoversight by the executive and the Board– Continued investment in technology– Readiness to respond to incidents– Awareness programs and trainings– Privacy by design– Region-specific data protection controls andawareness campaigns

Negative : Increased operational costfor technological investments andhiring and training talent

6

Governance :Being
recognized
as industry
leader in our
information
securitypractices

Opportunity– Increasing revenue fromcybersecurity service offerings andsolutions– Being recognized as a industry leader
in our information security practices
and adoption of leading data
privacy standards across all global
operations will result in higher client
confidence.

Positive : Minimize cybersecurity anddata privacy breach threats to Infosys
and our customers through advanced
cybersecurity solutions and adoptionof leading data privacy standards

167

Disclosure question

P1

P2

P3

P4

P5

P6

P7

P8

P9

Policy and management processes
1a. Whether your entity’s
policy / policies covereach principle and its coreelements of the NGRBCs.
(Yes / No)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

1b. Has the policy been
approved by the Board? *(Yes / No)

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

No

Refer to theWhistleblower
Policy,Infosys Code of
Conduct andEthicsRefer to the
Responsible
Supply Chain
and Supplier
Diversity Policy

Refer toInfosys Codeof Conduct
and Ethics

Refer to our
CSR Policy
and ESGvision 2030

Refer to our
Responsible
Supply Chain
and Supplier
Diversity
Policy andInfosys Code of
Conduct andEthicsRefer to our
HSE Policy

Refer to our
ESG vision
2030

Refer to our
CSR Policy andResponsible
Supply Chain
and Supplier
Diversity Policy

Refer toour Privacy
Statement

2. Whether the entity has
translated the policy into
procedures. (Yes / No)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

3. Do the enlisted policies
extend to your value
chain partners? (Yes / No)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

ISO 9001, GRI
Standard 2021,
UNGC Principles,OECD-Principles
of Corporate
Governance,
UN SDGs,
National
Guidelines on
Responsible
Business
Conduct(NGRBC)ISO 9001, GRI
Standard 2021,
ISO 14001

ISO 9001,GRI Standard
2021, ISO
45001,
Universal
Declarationof HumanRights, ILO
Declarationon
Fundamental
Principles
and Rights
at Work,
UN Guiding
Principles on
Business andHuman Rights

ISO 9001,GRI Standard
2021

ISO 9001, GRI
Standard 2021,
Universal
Declarationof HumanRights, ILO
Declaration on
Fundamental
Principles
and Rights at
Work, UNGC
Principles

ISO 9001, GRI
Standard 2021,
ISO 14001,
PAS 2060:2014,
ISO 45001,
ISO22301,
SASB,
TCFD, UN
SDGs, Carbon
Disclosure
Project (CDP)

ISO 9001,GRI Standard
2021, UNGC
Principles

ISO 9001, GRI
Standard 2021,
UN SDGs

ISO 9001, GRI
Standard 2021,
ISO 27001,
ISO 27701,
SASB

1c. Web link of thepolicies, if available

Infosys Integrated Annual Report 2022-23

4. Name of the national
and international codes/ certifications / labels/ standards (e.g. Forest
Stewardship Council,
Fairtrade, Rainforest
Alliance, Trustee)
standards (e.g. SA 8000,
OHSAS, ISO, BIS) adopted
by your entity andmapped to each principle.

Business Responsibility and Sustainability Report

168

Section B: Management and process disclosures

Infosys Integrated Annual Report 2022-23

5. Specific commitments,
goals and targets set by
the entity with defined
timelines, if any.

In 2020, we became carbon neutral, 30 years ahead of the timeline set by the Paris Agreement. In October 2020, we launched our ESG vision andambitions for 2030. The Company’s ESG Vision 2030 can be accessed at https://www.infosys.com/content/dam/infosys-web/en/about/corporateresponsibility/esg-vision-2030/index.html

6. Performance of theentity against the specificcommitments, goals
and targets along withreasons in case the same
are not met.

Yes. The details of performance on our ESG goals is available in the chapters Approaching value creation and Delivering value in this Integrated Annual
Report.

Governance, leadership and oversight

7. Statement by director responsible for the Business Responsibility Report, highlighting ESG related challenges, targets and achievements“Infosys is committed to make the business sustainable and socially responsible. The Company’s ESG roadmap is reflected in Infosys ESG Vision 2030 as an ongoing
aspiration to be a well-governed organization for diverse talent with an inclusive workplace and community strategies to leverage technology for good.”
Salil Parekh

Chief Executive Officer and Managing Director

Information on ESG-related challenges, targets and achievements is available in the chapters Approaching value creation and Delivering value in this Integrated Annual Report.

8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy(ies)
The ESG Committee of the Board oversees the business responsibility and progress on our ESG ambitions. Read more in the ESG Committee report in the Corporate governancereport of this Integrated Annual Report.

9. Does the entity have a specified Committee of the Board / Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details
Yes, the ESG Committee of the Board. Read more in the ESG Committee report in the Corporate governance report of this Integrated Annual Report.

Subject for review

10. Details of review of
NGRBCs by the Company

169

11. Has the entity carriedout independent
assessment / evaluationof the working of its
policies by an external
agency? (Yes / No). If
yes, provide name of theagency.

Indicate whether review was undertaken by
Director / Committee of the Board / Any othercommittee

Frequency (Annually / Half yearly / Quarterly /Any other – please specify)

P1

P1

P2

P3

P4

P5

P6

P7

P8

P9

P2

Performance against above policies and follow
up action

Committees of the Board

Annually

Compliance with statutory requirements ofrelevance to the principles, and, rectification of
any non-compliance

Committee of the Board

Quarterly

Principles

P1

Answer

P2

P3

P4

P5

P6

Yes. BVC, DNV and BSI

P3

P4

P7

P5

P6

P8

P7

P8

P9

P9

Questions

P1

P2

P3

P4

P5

P6

The entity does not consider the principles
material to its business (Yes / No)
The entity is not at a stage where it is in aposition to formulate and implement the policies
on specified principles (Yes / No)
The entity does not have the financial or humanand technical resources available for the task (Yes/ No)
It is planned to be done in the next financial year
(Yes / No)
Any other reason (please specify)

Not applicable

P7

P8

P9

Business Responsibility and Sustainability Report170

12. If answer toquestion (1) above is“No” i.e. not all principles
are covered by a policy,
reasons to be stated

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Section C: Principle-wise performance disclosure
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is
ethical, transparent and accountable
Essential indicators
1. Percentage coverage by training and awareness programs on any or all the principles in the financial year
Segment
Board of Directors and Board
Committees

Total number of training andawareness programs held

Topics / principles covered under the training and
its impact% coverage by awareness programs

Refer to the Training of board members section of the Corporate governance report

100

Key Managerial Personnel (KMP) (1)15

Climate change, environmental sustainability, social
sustainability, Infosys Code of Conduct and Ethics,
data privacy, cybersecurity

100

Employees other than BoD and KMPs (1)15

Climate change, environmental sustainability, social
sustainability, Infosys Code of Conduct and Ethics,
data privacy, cybersecurity

100

(1)

We have an exclusive learning channel on ESG on Lex, our internal learning platform.

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law
enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified inRegulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
There are no monetary or non-monetary actions on the Company or its directors / KMPs with regulators / law enforcement agencies / judicial institutions, in the financial year.

3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where monetary or non-monetary action has been appealed.
Not applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.
Yes. Our Code of Conduct and Ethics complies with the legal requirements of applicable laws and regulations, including anti-bribery, anti-corruption and ethical handling ofconflicts of interest. Additionally, we also have an Anti-Bribery and Anti-Corruption (ABAC) policy (available in the Company intranet), which provides the requirements around
ABAC in detail.

5. Number of Directors / KMPs / employees / workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery / corruption:
There have been no cases involving disciplinary action by any law enforcement agency for the charges of bribery / corruption against directors / KMPs / employees that have beenbrought to our attention.

6. Details of complaints with regard to conflict of interest:
171

None.

Not applicable

Leadership indicators
1. Awareness programs conducted for value chain partners on any of the principles during the financial year:
Segment

Total number of awarenessprograms held

Value chain partners(1)

2

Topics / principles covered under the training (1)% of value chain partners covered
under the awareness programs

Governance, ethics and compliance with law, fairbusiness practices, labor practices and human rights,
health and safety, and environment

We have launched an exclusive ESG learning portal for our suppliers.

2. Does the entity have processes in place to avoid / manage conflicts of interest involving members of the Board? Provide details of the processes in place to avoid /manage conflict of interests involving members of the Board.
Yes. The Company receives periodic / ongoing declarations from its Board members, on the entities they are interested in and ensures requisite approvals, as required under the
statute as well as the Company’s policies, are in place before transacting with such individuals / entities.

10

Business Responsibility and Sustainability Report

172

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators / law enforcement agencies / judicial
institutions, on cases of corruption and conflicts of interest

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

PRINCIPLE 2:
Businesses should provide goods and services in a manner that is sustainable and safe
Essential indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes tototal R&D and capex investments made by the company, respectively.
Fiscal 2022-23 (In %)Fiscal 2021-22 (In %)R&D (1)

26.7

24.3

Education, training and assessment of employees to
upskill and reskill and technology spend to improve
environmental and social products and processes.

Capex (1)

3.1

3.0

Efficient equipment for cooling, lighting, renewableenergy, water management, waste management andsustainable materials.

(1)

Details of improvements in environmental andsocial impacts

Based on standalone financial statements under Ind AS

2a. Does the company have procedures in place for sustainable sourcing? (Yes / No)
Yes. We are an IT services company, we do not source raw materials. However, all our procurement follows the principles of sustainable sourcing.

2b. If yes, what percentage of inputs were sourced sustainably?
Not applicable. As part of the onboarding process for suppliers, we require their response to an ESG commitment question and their acceptance of the Supplier Code of Conduct,
which is based on the UNGC principles.

3. Describe the processes in place to safely collect, reuse, recycle and dispose after sale and at the end of life of your products.
(a) Plastics (including packaging)(b) E-waste(c) Hazardous waste(d) Other waste

Not applicable. We don’t manufacture any products. We are an IT services company.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No).
If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards?
If not, provide steps taken to address the same.
Not applicable173

1. Has the entity conducted Life Cycle Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details
in the following format?
Not applicable

2. If there are any significant social or environmental concerns and / or risks arising from production or disposal of your products / services, as identified in the Life Cycle
Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same
Not applicable

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).
Not applicable. We are an IT services company, we don’t manufacture any products.

4. Of the products and packaging collected at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:
Not applicable. We are an IT services company, we don’t manufacture any products.

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Not applicable. We are an IT services company, we don’t manufacture any products.

Business Responsibility and Sustainability Report

174

Leadership indicators

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

PRINCIPLE 3:
Businesses should respect and promote the wellbeing of all employees, including those in their value chains
Essential indicators
1a. Details of measures for the well-being of employees% of employees covered
Category

Total (A)

Health insurance
Number (B)

Accident insurance% (B / A)

Number (C) % (C / A)

Maternity benefits
Number (D)Paternity benefits% (D / A)

Day care facilities (2)Number (E)% (E / A)

Number (F)% (F / A)

Permanent employees (1)Male

1,73,086

1,73,086

100

1,73,086

100

NA

NA

1,73,086

100

–

–

Female1,13,084

1,13,084100

1,13,084100

1,13,084

100

NA

NA

–

–

Total

2,86,170

2,86,170

100

2,86,170

100

1,13,084100

1,73,086

100

–

–

Other than permanent employees
MaleFemaleVendors and contractors are required to adhere to statutory compliances as per the State rules

Total
(1)

Includes only employees whose base location is India(2)

Post-covid, owing to a hybrid work model available to employees, we did not see a demand for day care facilities, this year.

2. Details of retirement benefits, for current and previous financial years
Fiscal 2023
Benefits

PF
Gratuity
ESI(1)

Others – superannuation (2)Fiscal 2022

No. of employees
covered as a % of
total employees

No. of workers
covered as a % of
total workers

Deducted anddeposited with theauthority (Y / N / NA)

No. of employees
covered as a % of
total employees

No. of workers
covered as a % of
total workers

Deducted anddeposited with theauthority (Y / N / NA)

100

NA

Y

100

NA

Y

100

NA

Y

100

NA

Y

9

NA

Y

9

NA

Y

11

NA

Y

9

NA

Y

This table represents retirement benefits for the employees working in India. All our employees working outside India are eligible for retirement benefits according to applicable laws in the regions
they operate.
(1)

All eligible employees covered under the Employees State Insurance Act (“ESIC”), 1948 are provided the benefit.

(2)

Eligible employees are participants to Superannuation retirement benefits

175

Are the premises / offices of the entity accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not,whether any steps are being taken by the entity in this regard
Yes. The premises / offices of the entities are accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016.
•

Accessible infrastructure: At Infosys, accessibility principles are integrated into the building and campus infrastructure as part of the design. It is treated as an essential aspect
along with other key principles such as productivity, health and wellness, and sustainability. From parking spaces to campus entrances and building-level interventions,accessibility in our infrastructure goes beyond regulatory requirements to ensure our buildings cater to the needs of all users and society. Employee feedback is collected throughsurveys to evaluate effectiveness of design and facilitate continuous improvement.

•

Local transport allowance: As part of our commitment to facilitating accessibility, we also provide special transport allowance to our employees in India acknowledging the factthat every differently-abled individual will have a separate accessible commute requirement.

•

We also provide loan facility to differently-abled employees to enable them to buy assistive devices.

•

The Practice Guidelines enable the various functionaries in the organization to develop inclusive practices in their function to integrate differently-abled people.

•

Facilitating careers: Continuing our focus on addressing ‘aspirations’ we have also challenged many traditional biases and successfully placed differently-abled employees onsite
at client locations and projects. Our offshore development centers of service delivery, quality, solution design and centers of excellence employ people from entry level to senior
manager.

•

Accessibility lab: The digital accessibility learning suite of programs and certification enables engineers to gain a deeper understanding of accessibility needs of differentlyabled employees to build accessible solutions. Infosys’ Accessibility Testing Tool (iATT) has been listed as one of w3.org’s recommended tools. iATT is an intelligent accessibility
compliance analyzer with a robust rules engine and exhaustive features that enable intuitive data to facilitate accessibility analysis.

•

The Infyability employee resource group provides a great opportunity to strengthen communication and awareness, and most importantly, workplace support and inclusion ofdifferently-abled employees.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.
Yes, the entity has an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016.
https://www.infosys.com/careers/discover/culture/documents/diversity-inclusion-policy.pdf

5. Return to work and retention rates of employees that took parental leave.
Gender

Permanent employees – fiscal 2023

Permanent employees – fiscal 2022

Infosys Integrated Annual Report 2022-23

Return to work rate (In %)Retention rate (In %) *Return to work rate (In %)Retention rate (In %) *

Male

100

70

100

80

Female

99

68

99

77

Based on the recommendations of GRI standard 401-3* Reasons for attrition could be varied.

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief.
Permanent employees
and other than permanent
employees

Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization envisages an open-door
policy. Employees and contract staff have access to several forums where they can highlight matters or concerns faced at the workplace. These areresolved through a well-established and robust grievance resolution mechanism comprising resolution hubs.
For more information, refer to Resolution hubs available in the Management Discussion and Analysis section of this Integrated Annual Report.

Business Responsibility and Sustainability Report176

3. Accessibility of workplaces

Infosys Integrated Annual Report 2022-23

7. Membership of employees and workers in association(s) or unions recognized by the listed entity:
We recognize our employees’ rights to assemble, communicate and join associations of their choice in matters related to their employment within the purview of our policies
and procedures. We respect the rights of our employees to associate or not associate with internal employee resource groups and seek representation, to bargain or not bargain
collectively in accordance with local laws.
Fiscal 2023

Fiscal 2022

Total employees inrespective category(A)

No. of employees
in respective
category, who
are part ofassociation(s) orunion (B)

% (B / A)

Total employees inrespective category(C)

No. of employees
in respective
category, who
are part ofassociation(s) orunion (D)% (D / C)

Total permanent employees

3,43,234

8,848

2.58

3,14,015

7,668

2.44

Male

2,07,879

5,510

2.65

1,89,517

4,695

2.48

Female1,35,355

3,338

2.47

1,24,498

2,973

2.39

Category

8. Details of training of employees and worker (% to total no. of employees / workers in the category):
Continuous learning and reskilling have always been central to our culture. Lex, our in-house mobile first online learning platform, offers many self-learning courses that can beaccessed by employees anytime, anywhere. We also offer instructor-led training programs to our employees around the world.
Embedding a Health, Safety and Environment (HSE) culture in the organization necessitates competency development. Training includes awareness-building, mock drills, classroom
sessions and periodic demonstrations. Job-specific and generic training is conducted for contractual staff during induction and later through refresher modules.
Fiscal 2023
Total (A)On health and safetymeasuresFiscal 2022
On skill upgradation

No. (B)% (B / A)

No. (C)% (C / A)

Total (D)On health and safetymeasuresOn skill upgradation

No. (E)% (E / D)

No. (F)% (F / D)Male

2,07,879

2,07,879

100

1,85,211

89.1

1,89,517

1,89,517

100

1,54,824

81.6

Female1,35,355

1,35,355

100

1,22,439

90.4

1,24,498

1,24,498

100

1,03,022

82.7

Total

3,43,234

3,43,234

100

3,07,650

89.6

3,14,015

3,14,015

100

2,57,846

82.1

177

Category

Fiscal 2023

Fiscal 2022

Total (A) (1)No. (B)% (B / A)

Total (D) (1)No. (E)% (E / D)

1,33,642

1,33,642

100

1,09,198

1,09,198

100

Employees
MaleFemale87,121

87,121

100

68,154

68,154100

Total

2,20,763

2,20,763

100

1,77,352

1,77,352100(1)100% of eligible employees have received performance and career development reviews.

10. Health and safety management system:
10a. Whether an occupational health and safety management system has been implemented by the entity? (Yes / No). If yes, the coverage of such system?
Yes. Infosys recognizes and accords highest priority to safety and well-being of its employees and other relevant parties. Our HSE Policy enunciates our philosophy and commitment
towards the management of key HSE aspects. Our HSEMS is certified to ISO 45001:2018 standard across all India locations in line with our strategy. At overseas locations, we have
implemented processes based on legal requirements / internal benchmarks and have also included them in the internal audits cycle. We have established numerous interventions
to address occupational health-related topics, including emotional well-being, mental health, ergonomics, safety, lifestyle diseases and more. Well-equipped occupational healthcenters are available in all our campuses in India. During the year, doctors and physios have helped employees and their dependents through virtual consultations leveraging ourtelemedicine portal. More details on Occupational Health and Safety are available on our website athttps://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.

10b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
We identify occupational health and safety risks proactively, for all existing / new / modified activities, processes, products or services, and regulatory changes including routine andnon-routine activities. Risk assessment includes quarterly evaluation of incidents that have occurred. Hazardous condition, if any, are identified and prioritized for elimination andcontrol. Once the identified hierarchy of controls is implemented, the risk assessment is revisited to assess the residual risks. As Infosys is an IT / ITES company, there are no productrisks, but there are those related to the provision of services like ergonomics in work and those associated with the operation of utilities and employee commute. Participation andconsultation with relevant personnel involved in the activities is ensured during the risk assessments.
Risks are also assessed prior to and post the development of new buildings. Experience from previous projects and current operations are also considered. We continually monitor
our construction sites where infrastructure is being established.
Infosys Integrated Annual Report 2022-23

More details on Occupational Health and Safety are available on our website athttps://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.

10c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y / N)Yes.

10d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
Yes.

Business Responsibility and Sustainability Report

178

9. Details of performance and career development reviews of employees and workers

Infosys Integrated Annual Report 2022-23

11. Details of safety-related incidents during the current fiscal
Safety incident / number

Category

Lost Time Injury Frequency Rate (LTIFR) (per one millionperson hours worked)
Total recordable work-related injuries

No. of fatalities
High consequence work-related injury or ill-health(excluding fatalities)

Fiscal 2023 *Fiscal 2022 *Permanent employees

0.057

0.099

Other than permanent employees

1.022

0.823

Permanent employees

51

Other than permanent employees

28

19Permanent employees

00Other than permanent employees

01Permanent employees

00Other than permanent employees

00“Other than permanent employees” includes contract workmen.

* India operations

12. Describe the measures taken by the Company to ensure a safe and healthy work place.
More details on Occupational Health and Safety are available on our website athttps://www.infosys.com/about/corporate-responsibility/social/employee-wellbeing/occupational-health-safety.html.

13. Number of complaints on working conditions and health and safety made by employees and workers:
Fiscal 2023

Fiscal 2022

Filed during the year

Pending resolution at
the end of year

Filed during the year

Pending resolution at
the end of year

Working conditions

26

0

6

0

Health and safety

30

0

0

0

14. Assessments for the year for health and safety:
Our HSEMS is certified to ISO 45001:2018 standard. The scope of HSEMS is all activities, which are a part of our operations and employees working for and on behalf of the Company,
including deputees at client sites. Safety and well-being of our employees is accorded the highest priority. Our internal corporate certification audits and assessments team (CCAT)
conducts periodic assessments across Infosys locations annually.
Assessments for the year

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)

Health and safety practices

100

Working conditions

100

179

Stringent operation controls such as maker and checker control points have been deployed across the operational areas. These are also monitored on a periodic basis. There havebeen no significant risks / concerns arising from assessments of health and safety practices and working conditions.

Leadership indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) employee (Y / N) (B) worker (Y / N)
Yes.

2. Provide the measures undertaken by the Company to ensure that statutory dues have been deducted and deposited by the value chain partners.
The Company periodically audits value chain partners to ensure timely deduction and deposit of statutory dues.

3. Provide the number of employees / workers having suffered high consequence work-related injury / ill-health / fatalities (as reported in Q11 of Essential indicators above),
who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment
No. of employees / workers that are rehabilitated and placedin suitable employment or whose family members have beenplaced in suitable employment

Total no. of affected employees / workers
Fiscal 2023

Fiscal 2022

Fiscal 2023

Fiscal 2022

Employees

0

0

0

0

Other than permanent employees

0

1

0

0

“Other than permanent employees” includes contractors.

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or
termination of employment? (Yes / No)
Yes.

5. Details on assessment of value chain partners
Infosys Integrated Annual Report 2022-23% of value chain partners (by value of business done with such partners)that were assessed (1)Working conditions

31

Health and safety

31

(1)

In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46 suppliers as on March 31, 2023.

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working
conditions of value chain partners
There were no significant risks / concerns arising from the assessments. Based on our observations during these assessments, we have launched an exclusive ESG learning portal topromote learning and sharing of ESG best practices among our suppliers.

Business Responsibility and Sustainability Report180

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments ofhealth and safety practices and working conditions.

Infosys Integrated Annual Report 2022-23

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential indicators
1. Describe the processes for identifying key stakeholder groups of the entity
We are privileged to maintain a strong relationship with our investors based on a deep understanding of their expectations and our commitment to consistently fulfil them. Client
value is one of the elements of the Infosys values, which we refer to as C-LIFE. Our employees enable us to create value for our clients and for the organization, and in return, they
enjoy fulfilling careers. Suppliers are our key stakeholders who enable us to deliver business value. Respect for the law of the land is an integral part of the Infosys Code of Conduct,
making governments and regulators important stakeholders. Our commitment to inclusive growth ensures that the community is at the center of our sustainable business practices.
To fulfil this commitment, Infosys Foundation was established in 1996 to work in the areas of education, healthcare, women empowerment, sustainability, rural development,
disaster relief, and the promotion of art and culture.
Our stakeholders are our investors, clients, employees, suppliers, government / regulators and the community.

2. List stakeholder groups identified as key for your company as described in Section B, Q. 9, and the frequency of engagement with each stakeholder group.
The details are provided on our website, at https://www.infosys.com/about/corporate-responsibility/our-stakeholders.html.

Leadership indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how isfeedback from such consultations provided to the Board.
Consultation with stakeholders on E,S and G topics are delegated to departments within the organization who are also responsible for engaging with stakeholders continually.
Infosys has presence across multiple geographies, industries, services and products. The universe of our material concerns is complex and multi-layered, one that is deeplyintertwined with the decisions we implement and the value we seek to create through our business. Within the domains of E, S and G, we are constantly thinking about the mostimportant issues and preparing for them through these consultations.
We determined our most material issues through a data-driven and consultative exercise. Material topics were shortlisted and prioritized based on their impact on our stakeholders
and our business. Read our ESG Vision 2030 document at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html.
The quarterly ESG Committee meeting provides us an opportunity to share feedback with the Board on these consultations.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances
as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.
Yes. We framed our ESG Vision 2030 on material topics based on our stakeholder consultations. Material topics were shortlisted and prioritized based on their impact on our
stakeholders and our business. Our ESG priorities, as part of the Company’s ESG Vision 2030, can be accessed athttps://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/esg-priorities.html.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable / marginalized stakeholder groups.
Infosys Foundation was set up to support underprivileged sections of society, create opportunities and strive towards a more equitable society. The Foundation engages with thecommunity, especially vulnerable and marginalized stakeholder groups, in a variety of focus areas. For information on the percentage of beneficiaries of the CSR projects, refer to
Principle 8, Q.6 (Leadership Indicators) in this report. Read the Infosys Foundation annual reports at https://www.infosys.com/infosys-foundation/.

181

Essential indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:
Fiscal 2023

Fiscal 2022

Total (A)No. of employees /workers covered (B)% (B / A)

Total (C)No. of employees /workers covered (D)% (D / C)

3,43,234

3,43,234

100

3,14,015

3,14,015

100

Other than permanent

24,891

24,891

100

25,47025,470100

Total employees

3,68,125

3,68,125

100

3,39,485

3,39,485

100

Employees
Permanent

2. Details of employees and workers in terms of minimum wages paid:
Infosys operates in 56 countries and employees are deployed across geographies. Legal minimum is defined based on various parameters like tenure, role, location, citizenship statusetc., and varies by country and even by states within some countries. We have defined detailed processes considering these parameters to ensure the employees are paid as per the
local regulations and we are compliant with local laws, as applicable.
Category

Fiscal 2023
Total
employees(A)

Equal to minimum wage
No. (B)% (B /A)

Fiscal 2022
More than minimum wage
No. (C)% (C /A)

Total
employees(D)

Equal to minimum wage

More than minimum wage

No. (E)% (E /D)

No. (F)% (F /D)

Permanent employees

Infosys Integrated Annual Report 2022-23

Male

1,73,086

3,856

2.23

1,69,230

97.77

1,57,132

6,974

4.44

1,50,158

95.56

Female1,13,084

5,040

4.46

1,08,044

95.54

1,04,672

9,208

8.80

95,464

91.20

Total

2,86,170

8,896

3.11

2,77,274

96.89

2,61,804

16,182

6.18

2,45,622

93.82

Other than permanent employees
MaleFemaleTotal
Includes only employees whose base location is India

Vendors and contractors are required to adhere to statutory compliances as per the State rules

Business Responsibility and Sustainability Report

182

PRINCIPLE 5: Businesses should respect and promote human rights

Infosys Integrated Annual Report 2022-23

3. Details of remuneration / salary / wages, in the following format:
Male
As on March 31, 2023

NumberMedian remuneration / salary / wages ofrespective category in ` lakhs

NumberMedian remuneration / salary / wages ofrespective category in ` lakhs

6*

219.2

1

253.6

3

1061.70–75,414
73,11324,556
1,73,083

3.6
11.3
26.3
7.9

61,32745,7486,009
1,13,084

3.6
9.9
22.2
5.2

Board of Directors (BoD)Key Managerial Personnel(1)

Employees (2) other than
BoD and KMP

JuniorMiddleSenior
Total

Female* Remuneration to Chief Executive Officer and Managing Director (CEO and MD) has been included in KMP(1)

Key Management Personnel includes Chief Executive Officer and Managing Director (CEO and MD), Chief Financial Officer (CFO) and Company Secretary (CS)(2)

India - Infosys group

4. Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes / No)
Yes

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization has an open-door policy. Employees also have accessto several forums where they can highlight matters or concerns faced at the workplace. This is achieved through a well-established and robust grievance resolution mechanism
comprising resolution hubs.
Resolution hubs adhere to the principles of natural justice, confidentiality, sensitivity, non-retaliation and fairness while addressing concerns. The concerns are handled withsensitivity, while delivering timely action and closure. A detailed investigation process ensures fairness for all involved, with an opportunity to present facts and any material
evidence.
For more information, refer to Resolution hubs available in the Management Discussion and Analysis section of this Integrated Annual Report.

6. Number of complaints on the following made by employees and workers:
Fiscal 2023
Filed during
the yearSexual harassment

78

Pending resolution at theend of year

11 *Fiscal 2022
Remarks
Incidents of sexual harassment
were reviewed as per therequirements of POSH Act inIndia and as per the establishedgrievance redressal process.

Filed during
the year

Pending resolution at theend of year

Remarks

25

0

–

183

Filed during
the year

Pending
resolution at
the end of year

Remarks

Fiscal 2022
Filed during
the year

Pending
resolution at
the end of year

Remarks

82

0

–

111

9*

Incidents pertaining todiscrimination were reviewed as
per the established grievance
redressal process for HEAR

Child labor

–

–

–

–

–

–

Forced labor / Involuntary labor

–

–

–

–

–

–

Wages

–

–

–

–

–

–

Other human rights-related
issues

–

–

–

–

–

–

Discrimination at workplace

Business Responsibility and Sustainability Report

184

Fiscal 2023

* As on May 29, 2023, we have six ASHI cases and two cases of discrimination at workplace, pending resolution.
A robust feedback mechanism ensures employee feedback and concerns are heard and addressed in a timely manner. During fiscal 2022 and fiscal 2023, we had 660 and 707 queries / grievances,respectively, pertaining to performance management, interpersonal conflicts and other internal policies, which were redressed as per the processes established by HEAR.

7. Mechanism to prevent adverse consequences to the complainant in discrimination and harassment cases
Infosys’ non-retaliation policy is an embodiment of our values and a cornerstone of our Code. Infosys commits to protect the complainant and and ensure that they are notretaliated against because of any report that they raise in good faith. Infosys does not tolerate any form of retaliation (whether by a manager, co-worker or otherwise) against an
individual because he or she made a good faith report of an integrity concern. This protection also extends to anyone who assists with or cooperates in an investigation or report ofan integrity concern or question. We support those who support our values.

8. Do human rights requirements form part of your business agreements and contracts? (Yes / No)
Yes.

9. Assessments for the year:% of your plants and offices that were assessed (by entity or statutory authorities or third parties) *Infosys Integrated Annual Report 2022-23

Child labor

100

Forced / involuntary labor

100

Sexual harassment

100

Discrimination at workplace

100

Wages

100

Others – please specify* India operations

10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above
There were no significant risks / concerns arising from the human rights assessments.

–

Infosys Integrated Annual Report 2022-23

Leadership indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints
At Infosys, our commitment to a values-based ethos is embodied in our Code of Conduct and Ethics. We have strengthened our approach to raising awareness of the Code. In 2022,
a digital version of the Infosys Code of Conduct and Ethics was launched. It provides user-friendly access to specific topics in an interactive way. It is a unique audio-visual experienceand is easy to navigate. The Code can also be accessed via mobile devices. The launch of the digital version of the Code is designed to help every employee understand the behavior
we expect, and the principles and values we uphold. We want to continue to build a culture of compliance, where everyone feels they are doing the right thing and prioritizing legal
and ethical choices.
The Code of Conduct and Ethics is also explained and outlined during the onboarding programs. #SwipeRightforIntegrity, an annual legal and compliance event, has evolved into aplatform to create awareness, engage in meaningful dialogues with all stakeholders, influence behavior and showcase Infosys’ culture. This has advanced the compliance and ethics
program and created greater awareness of expected behavior.

2. Details of the scope and coverage of any human rights due diligence conducted.
Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization has an open-door policy. Training on Infosys values andthe Code of Conduct and Ethics, in which our stand on human rights is enshrined, is an integral part of the induction program for new employees. Every employee at Infosys is
mandated to take the Smart Awareness Quiz (SAQ) every year which contains learning and assessments on the Code and human rights-related topics. Year-round email campaigns
on human rights topics serve as a reminder to employees on the expectations of maintaining a respectful workplace for everyone. The organization commissioned a humanrights assessment of its India operations in 2022. The findings of the assessment were used to incorporate appropriate changes to the approach as detailed in our reponse to
Question 1 above.
In fiscal 2023, we launched our Responsible Supply Chain and Supplier Diversity Policy and revised our Supplier Code of Conduct. We also launched an exclusive ESG learning portal
for our suppliers, which includes topics on human rights. Our supplier ESG assessments include human rights.

3. Is the premise / office of the entity accessible to differently-abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?
Yes. The premise / office of the entity is accessible to differently-abled visitors, as per the requirements of the Rights of Persons with Disabilities Act.

4. Details on assessment of value chain partners:% of value chain partners (by value of business done with such partners) that were assessed (1)Sexual harassment

31

Discrimination at workplace

31

Child labor

31

Forced labor / involuntary labor

31

Wages

31

Others – please specify–(1)

In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46 suppliers as on March 31, 2023.

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.
185

There were no significant risks / concerns arising from the assessments.

Essential indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format
Parameter

Fiscal 2023 (in GJ)

Fiscal 2022 (in GJ)

Total electricity consumption (A)7,12,134

6,15,063

Total fuel consumption (B)38,85235,413

Nil

Nil

7,50,986

6,50,476

5.11 GJ / ` cr

5.35 GJ / ` cr

NA

NA

Energy consumption through other sources (C)Total energy consumption (A+B+C)
Energy intensity per rupee of turnover (Total energy consumption / turnover in Rupees)
Energy intensity (optional) – the relevant metric may be selected by the entity
Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an
external agency? (Y / N) If yes, name of the external agency

Yes. Independent assurance has been carried out by KPMG Assurance andConsulting Services LLP

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India?
(Y / N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Not applicable

3. Provide details of the following disclosures related to water:
Parameter

Infosys Integrated Annual Report 2022-23

Fiscal 2023 (in kl)

Fiscal 2022 (in kl)(i) Surface waterNANA(ii) Groundwater

54,617

1,12,910

19,93,801

11,29,818

NANA(v) Others (rainwater)

2,26,261

69,656

Total volume of water withdrawal (i + ii + iii + iv + v)

22,74,679

13,12,384

Total volume of water consumption

22,74,679

13,12,384

15.50 kl / ` cr

10.79 kl / ` crNANA(iii) Third-party water(iv) Seawater / desalinated water

Water intensity per rupee of turnover (Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity
Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an
external agency? (Y / N) If yes, name of the external agency

Yes. Independent assurance has been carried out by KPMG Assurance andConsulting Services LLPBusiness Responsibility and Sustainability Report

186

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

Infosys Integrated Annual Report 2022-23

4. Has the entity implemented Zero Liquid Discharge policy? If yes, provide details of its coverage and implementation.
Yes. All sewage generated on Infosys campuses is treated in the in-house sewage treatment plants and the recycled water is used for irrigation, HVAC and flushing purposes. In someof our smaller leased offices, with limited space or lesser operational control, the wastewater is discharged into municipal sewers, which undergo further treatment.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format
Parameter

Please specify unit

Fiscal 2023

Fiscal 2022

NOx

Kg

26,015.10

22,907.32

SOxKg

1,126.01

2,566.01

Particulate matter (PM)Kg

3,441.52

3,899.34

Persistent organic pollutants (POP)

NA

NA

NA

Volatile organic compounds (VOC)

NA

NA

NA

Hazardous air pollutants (HAP)

NA

NA

NA

Others – please specify

NA

NA

NA

Note: Indicate if any independent
assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency.

Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity, in the following format :Parameter

Please specify unit

Fiscal 2023

Fiscal 2022

Total Scope 1 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)

tCO2 e

8,593

8,965

Total Scope 2 emissions (Break-up of the
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
NF3, if available)

tCO2 e62,352 (1)64,398 (1)Total Scope 1 and Scope 2 emissions per
rupee of turnovertCO2 e / ` cr

0.48

0.50

Total Scope 1 and Scope 2 emission
intensity (optional) – the relevant metric
may be selected by the entity

NA

NA

NA

Note: Indicate if any independent
assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency.
187

(1)

Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP

Scope 2 emissions includes India and overseas owned and leased offices

Infosys has been carbon neutral since fiscal 2020, across all emissions (scope 1, 2 and 3), and continued to be carbon neutral in fiscal 2023. The unique approach followedby Infosys – reduce emissions through energy efficiency, avoid emissions through adoption of clean energy, and finally offset unavoidable emissions – is a blueprint fororganizations to achieve carbon neutrality and eventually net zero. At Infosys, we believe reduction and avoidance are key to achieving global climate goals, and can be fast
tracked through skilling, adoption of automation and data-driven decision making and governance.
8. Provide details related to waste management by the entity, in the following format:
Parameter

Fiscal 2023

Fiscal 2022

Total waste generated (in metric tonnes)
Plastic waste (A)128.58114.62E-waste (B)813.37863.67

Biomedical waste (C)106.02

43.58

10,861.63

3,087.65

132.64132.02

Radioactive waste (F)

3.62

0.008

Other hazardous waste (Oil-soaked cotton waste, DG filters, paint cans, chemical cans, paint residue,
oil sludge, DG chimney soot, coolant oil and used oil) (G)

57.47

55.11

Other non-hazardous waste generated (Metal, wood, paper / cardboard, textile waste, kitchen oil,mixed waste, garden waste, glass waste, thermocol, rubber, STP sludge) (H)8,956.44

6,882.24

Total (A + B + C + D + E + F + G + H)

21,059.76

8,091.25

Construction and demolition waste (D)Battery waste (E)For each category of waste generated, total waste recovered through recycling, reusing or other recovery operations (in metric tonnes)
Infosys Integrated Annual Report 2022-23

Category of waste

Fiscal 2023

Fiscal 2022

(i) Recycled

9,022.89

9,512.77(ii) Reused

1,066.94

728.7270.73

010,160.55

10,241.5(iii) Other recovery operations
Total

Business Responsibility and Sustainability Report

188

7. Does the entity have any project related to reducing greenhouse gas emission? If yes, provide details.

Infosys Integrated Annual Report 2022-23

For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste

Fiscal 2023

Fiscal 2022(i) Incineration

118.5549.88(ii) Landfilling

10,781.84

886.1800

10,900.38

936.06(iii) Other disposal operations
Total
Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an
external agency? (Y / N) If yes, name of the external agency.

Yes. Independent assurance has been carried out by KPMG Assurance andConsulting Services LLP.

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous andtoxic chemicals in your products and processes and the practices adopted to manage such wastes.
Our waste management approach is based on the philosophy of reduce, reuse and recycle. We seek to uphold our ambition of zero waste to landfills through active minimization
combined with technology investment in recycling and streamlining systems and processes. With our efforts, we contribute to a circular economy and convert waste to resource.

10. If the entity has operations / offices in / around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity
hotspots, forests, coastal regulation zones) where environmental approvals are required, please specify details in the following format:
Our campuses are built on government-approved land in industrial zones and do not fall within nor are adjacent to protected areas or high-biodiversity areas.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:
Name and brief details of
project
Grant of Environmental
clearance for modification ofexisting B#1, B#2 & B#3 at E-city
campus, Bengaluru

EIA Notification No.

EC22B039KA156836

Date

Dec 28, 2022

Whether conductedby independent
external agency (Yes
/ No)

Yes

Results communicated inpublic domain (Yes / No)

Yes

Relevant web-link

https://www.infosys.com/
sustainability/approvals/
documents/environmentalclearance-blr-ecity.pdf

189

Yes. We are compliant with the applicable environmental law / regulations / guidelines in India.

Leadership indicators
1. Provide break-up of the total energy consumed into renewable and non-renewable sources, in the following format:
Parameter

Fiscal 2023 (GJ)

Fiscal 2022 (GJ)

3,59,644

2,66,119

Total fuel consumption (B)00Energy consumption through other sources (C)003,59,644

2,66,119

3,52,490

3,48,944

38,85235,4130

0

3,91,342

3,84,357

From renewable sources
Total electricity consumption (A)Total energy consumption (A+B+C)
From non-renewable sources
Total electricity consumption (D)Total fuel consumption (E)Energy consumption through other sources (F)Total energy consumption (D+E+F)
Note: Indicate if any independent assessment / evaluation /assurance has been carried out by an external agency? (Y /N) If yes, name of the external agency

Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLPBusiness Responsibility and Sustainability Report

190

12. Is the entity compliant with the applicable environmental law / regulations / guidelines in India; such as the Water (Prevention and Control of Pollution) Act,
Air (Prevention and Control of Pollution) Act, Environment Protection Act and rules thereunder (Y / N). If not, provide details of all such non-compliances in
the following format:

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

2. Provide the following details related to water discharged:
Parameter

Fiscal 2023

Fiscal 2022

Water discharge by destination and level of treatment (in kilolitres)(i) To Surface water
No treatment
With treatment – please specify level of treatment(ii) To Groundwater
No treatment
With treatment – please specify level of treatment(iii) To Seawater
No treatment
With treatment – please specify level of treatment

Waste water generated is treated in sewage treatment plants and reused for purposes like landscaping,
HVAC applications and flushing. There is no discharge in any of these categories.

(iv) Sent to third-parties
No treatment
With treatment – please specify level of treatment(v) Others
No treatment
With treatment – please specify level of treatment
Total water discharged (in kilolitres)
Note: Indicate if any independent assessment / evaluation / assurance has
been carried out by an external agency?
(Y / N) If yes, name of the external agency

Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP.

191

We recognize that we are working in countries which are water-stressed zones. We continue our efforts in water conservation through a combination of technology
interventions, rainwater harvesting, recycling and reuse of waste water, communication and employee engagement. We have over the years succeeded in recharging
groundwater aquifers through the deep injection wells and lakes we have created and this has benefitted local communities as well.

Particulars
Name of the area
Nature of operations

Fresh water withdrawal from water-stressed Zones (High and Extremely High zones by WRI)
India

Australia

Israel

Mauritius

MexicoPhilippines

RomaniaSouth
AfricaSpain

UAE

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

IT/ITES
services

–

–

–

–

–

–

–

–

–

–

Water withdrawal, consumption and discharge in thefollowing format:
Parameter
Water withdrawal by source (in kilolitres)(i) Surface water(ii) Groundwater (open wells + borewells)(iii) Third party water (municipal and other suppliers)(iv) Seawater / desalinated water

54,617

–

–

–

–

–

–

–

–

–

13,78,980

18,050

2,732

1,987

7,203

78,825

14,324

33

447

1,920

–

–

–

–

–

–

–

–

–

–

(v) Others (rainwater)

2,26,261

–

–

–

–

–

–

–

–

–

Total volume of water withdrawal(in kilolitres)

16,59,858

18,050

2,732

1,987

7,203

78,825

14,324

33

447

1,920

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Total volume of water consumption(in kilolitres)
Water intensity per rupee ofturnover (water consumed / turnover)Infosys Integrated Annual Report 2022-23

Water intensity (optional) – the relevant metric may
be selected by the entity
Water discharge by destination and level oftreatment (in kilolitres)(i) Into surface water
No treatment
With treatment – please specify level of treatment(ii) Into groundwater
No treatment
With treatment – please specify level of treatment

Business Responsibility and Sustainability Report

192

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility / plant located in areas of water stress, provide the following
information: (i) Name of the area (ii) Nature of operations (iii) Water withdrawal, consumption and discharge in the following format (ii) Nature of operations

Infosys Integrated Annual Report 2022-23

Particulars

Fresh water withdrawal from water-stressed Zones (High and Extremely High zones by WRI)(iii) Into seawater

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

(v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

No treatment

–

Nil

Nil

No treatment
With treatment – please specify level of treatment(iv) Sent to third-parties
No treatment
With treatment – please specify level of treatment

With treatment – please specify level of treatment

Discharged through common sewers managed by local authorities

Tertiary

Total water discharged (in kilolitres)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

4. Please provide details of total Scope 3 emissions and its intensity for every rupee of turnover
Parameter

Unit

Fiscal 2023

Fiscal 2022

Total Scope 3 emissions (Break-up of the GHG into CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, if available)

tCO2e

1,80,196

1,83,595tCO2e / ` cr

1.23

1.51

NA

NA

NA

Total Scope 3 emissions per rupee of turnover
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity
Note: Indicate if any independent assessment / evaluation /assurance has been carried out by an external agency? (Y / N)
If yes, name of the external agency

Yes. Independent assurance has been carried out by KPMG Assurance and Consulting Services LLP.

5. With respect to the ecologically sensitive areas reported at Question 10 of Essential indicators above, provide details of significant direct and indirect impact of the entity
on biodiversity in such areas along with prevention and remediation activities.
Not applicable

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions /effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format:
Sr. NoInitiative undertaken

Details of the initiative(web link, if any, may be provided along with summary)

Outcome of the initiative

Our ESG Vision for the environment is to ‘Serve the preservation of our planet by shaping and sharing technology solutions’.
Read more at https://www.infosys.com/content/dam/infosys-web/en/about/corporate-responsibility/esg-vision-2030/index.html
We adopt, invent and encourage smarter ways to mitigate GHG emissions, reduce energy consumption and manage water and waste, to make our planet stronger by consistently
embracing clean tech in our operations and client solutions, thereby minimizing the impact on nature. Read more in the Natural and Manufactured Capital sections of this report.
193

Infosys has a highly resilient Business Continuity Management System (BCMS) called Phoenix which is certified ISO 22301:2019 Security and Resilience — Business Continuity
Management Standard. This program ensures seamless continuity of business and utmost safety of employees and organization assets, while continuously meeting client
expectations and helping Infosys to be seen as a leader.
The BCMS program provides a robust framework for planning, establishing, implementing, operating, monitoring, reviewing, maintaining and continually improving business
continuity measures across Infosys and its subsidiaries as per the global BCMS strategy.
Comprehensive business continuity plans are created at three levels covering the business functions, locations and accounts. Integrated into our Enterprise Risk Management
Framework, the BCMS plans guide our typical response to events, such as catastrophes, natural or human-made disasters, which could disrupt or severely constrain our operations.
This covers various crisis scenarios as part of detailed risk assessments for functions, locations and accounts which are documented with mitigation plans along with controls put inplace. This has ensured a highly resilient management system that has been continuously validated through tests and exercises, and various incidents, which have been successfully
tackled without any major business continuity or employee safety impacts. The best example of this has been the unprecedented global COVID-19 pandemic in the last two years.
An efficient business continuity management policy has enabled us to maintain the status quo during disasters and pandemics as quickly and as cost-effectively as possible. It has
also helped to minimize downtime and achieve sustainable improvements in business continuity and regulatory compliance. For certification, refer tohttps://www.infosys.com/about/esg/certifications.html.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by theentity in this regard.
None.

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.
In fiscal 2022, we undertook a commitment to assess 100 of our top suppliers on ESG over a four-year period. We have covered 46% suppliers as on March 31, 2023.

Business Responsibility and Sustainability Report

194

7. Does the entity have a business continuity and disaster management plan? Give details in 100 words / web link

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in amanner that is responsible and transparent
Essential indicators
1. a. Number of affiliations with trade and industry chambers / associations.
~ 50
b. List the top 10 trade and industry chambers / associations you are a member of / are affiliated to, on the basis of no. of members.
S. No.

Name of the trade and industry chambers / associations

Reach of trade and industry chambers / associations(State / National)

1

National Association of Software and Services Companies (NASSCOM)

National2

Confederation of Indian Industry (CII)

National

3

Federation of Indian Chambers of Commerce and Industry (FICCI)National

4

Alliance for an Energy Efficient Economy (AEEE), India

National

5

Indian Green Building Council (IGBC)

National

6

Associated Chambers of Commerce and Industry (ASSOCHAM)

National

7

United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)

International

8

United States Green Building Council (USGBC)

International

9

World Economic Forum (WEF)

International

10

IACC (Indo Australia Chamber of Commerce)International

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from
regulatory authorities
None

Leadership indicators
1. Details of public policy positions advocated by the Company:
Infosys’ approach to achieving our government, policy and community objectives focuses on engaging ecosystems at the national, regional and local levels. To this end, Infosys
focuses on developing and maintaining partnerships with relevant government officials, business organizations, technology industry associations, educational institutions, andcommunity organizations in all of the Company’s key markets - including, but not limited to, the US, Canada, Europe, Australia, and India – to build mutually beneficial partnerships.
195Essential indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year
Not applicable – we have no SIA notification

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:
Not applicable

3. Describe the mechanisms to receive and redress grievances of the community.
Infosys Foundation works closely with communities in identified areas in the domains of education, healthcare, women empowerment, sustainability, rural development, art andculture, and disaster relief. Within its areas of work, the Foundation has robust mechanisms to assess the impact of projects on intended beneficiaries. These mechanisms include agrievance mailbox (feedback_IF@infosys.com), site visits, one-on-one and group discussions with beneficiaries to independent external assessments, among others, and provide
ample opportunity to receive and redress grievances of the intended beneficiaries.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers
Fiscal 2023*

Fiscal 2022*

Directly sourced from MSMEs / small producers

16%

9.79%

Sourced directly from within the district and neighboring districts

66%

72%

* India procurement

Leadership indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential indicators above)
Not applicable

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies
Infosys Integrated Annual Report 2022-23

S.
No

State

Aspirational district

Amount spent(In `)

S.
No

State

Aspirational district

1

Andhra Pradesh

2Andhra Pradesh

3Andhra Pradesh

4

Arunachal Pradesh

5

Assam

6

Assam

7

Amount spent(In `)

Visakhapatnam

7,17,85,217

10

Assam

Hailakandi

1,33,317

Y.S.R Kadapa

10,68,634

11

Bihar

Muzaffarpur

4,41,039

Vizianagaram

8,10,816

12

Bihar

Aurangabad

4,40,700

Namsai

4,18,273

13

Bihar

Gaya

2,62,168

Baksa

2,51,19,840

14

Bihar

Katihar

2,03,167

Udalguri

2,50,10,847

15

Bihar

Khagaria

1,47,158

Assam

Dhubri

2,22,966

16

Bihar

Purnia1,43,770

8

Assam

Goalpara

1,66,473

17

Bihar

Begusarai

1,42,732

9

Assam

Darrang

1,64,80218

Himachal Pradesh

Chamba

1,05,603

Business Responsibility and Sustainability Report

196

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Infosys Integrated Annual Report 2022-23

S.
No

State

Aspirational district

Amount spent(In `)

S.
No

State

Aspirational district

19

Jharkhand

Ranchi20

Jharkhand

21

Jharkhand

22

Amount spent(In `)

5,05,701

44

OdishaBalangir

11,35,760

Sahibganj

1,40,155

45

OdishaKandhamal

10,95,698

Hazaribag

1,39,918

46

OdishaRayagada

5,46,016

Jharkhand

Bokaro1,29,909

47

Punjab

Moga

4,02,855

23

Jharkhand

Lohardaga

1,28,552

48

PunjabFerozepur

1,36,101

24

JharkhandGumla

1,25,603

49

Rajasthan

Jaisalmer

62,90,445

25

Karnataka

Raichur

1,81,70,836

50

Rajasthan

Sirohi54,49,710

RajasthanKarauli

50,61,020

26

Karnataka

Yadgir29,17,231

51

27

KeralaWayanad

6,35,474

52

RajasthanBaran

39,63,382

Rajasthan

Dholpur

20,46,138
1,64,022

28

Madhya Pradesh

Singrauli

62,43,484

53

29

Madhya Pradesh

Barwani

46,21,390

54

SikkimWest District

30

Madhya PradeshDamoh

40,24,525

55

Tamil Nadu

Virudhunagar

2,51,960

Tamil Nadu

Ramanathapuram

2,00,527

31

Madhya Pradesh

Vidisha10,38,478

56

32

Madhya Pradesh

Guna

3,79,222

57

Telangana

Bhadradri-Kothagudem

62,50,000

TripuraDhalai2,90,972

33

Madhya Pradesh

Rajgarh

1,00,350

58

34

Maharashtra

Gadchiroli

31,24,664

59

Uttar Pradesh

Fatehpur

4,85,764

35

Maharashtra

Osmanabad

10,52,337

60

Uttar Pradesh

Chandauli

1,54,558

36

Maharashtra

Nandurbar

10,19,303

61

Uttar Pradesh

Sonbhadra

1,31,514

37

Maharashtra

Washim

9,62,333

62

Uttarakhand

Haridwar

4,56,429

Uttarakhand

Udham Singh Nagar

3,23,010

Various districts - with spend less than one lakh

6,38,513

38

Manipur

Chandel

1,75,300

63

39

Meghalaya

Ribhoi

4,72,830

64

40

OdishaGajapati

19,57,832

41

OdishaKalahandi

17,61,179

42

OdishaKoraput

14,93,897

43

OdishaDhenkanal

13,17,135

Total

21,48,99,551

Note:
105 out of the 112 asprirational districts covered in fiscal 2023

3. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized / vulnerable groups? (Yes / No)
Yes. Our responsible supply chain and supplier diversity policy guides our efforts.
Refer to https://www.infosys.com/investors/corporate-governance/documents/responsible-supply-chain-supplier-diversity-policy.pdf.

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current fiscal), based on traditional knowledge
Not applicable197

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved
Not applicableS.
No

CSR project

No. of persons
benefitted from CSR
projects% of beneficiaries
from vulnerable
and marginalised
groupsS.
No

CSR project

No. of persons
benefitted from CSR
projects

1

Arpan Trust

20,250

95

2

14

100

55,0000

Ramakrishna Sarada
Mission Matri Bhavan

4,20,785

Bateshwar restoration

3

Bharatiya Vidya Bhavan

97,5290

15

Seva Bharati

28,000

0

4

Bio-gas and improved
cookstove projects

9,64,000

75

16

SGBS Unnati Foundation

10,0000

17

1,50,00005Department of
Education, Karnataka

51,000100

Shivganga Samagra
Gramvikas Parishad

18

Skill programs

27,90698

6

Evidyaloka

21,026100

19

0

Hebbal Lake, Mysuru

40,7000

8

Infosys Foundation
Vishram Sadan – All
India Institute ofMedical Sciences

1,00,0000Sri Jayadeva Institute ofCardiovascular Sciences
and Research

47,0397

20

Sri Ramakrishna
Sevashrama, Pavagada

14,7352

21

2

Infosys Springboard –Digital Literacy Program

10,74,295

27

Visakha Jilla Nava
Nirmana Samiti

26,757

9

22

Yuva Foundation

79,866100

10Mo-Schools

28,475100

2349,33749

11

Mudipu road
construction

3,60,0000

Various beneficiaries
less than 10,000
Total

37,81,463

45

12

Pocharam municipality

51,747

0

13

Ramakrishna Mission
Sevashrama

63,01643*% of beneficiaries
from vulnerable
and marginalised
groupsNote:
1. Women, children and people with differently-abled are the main vulnerable groups identified.
2. Beneficiary count is arrived based on the progress reports, site visits and MoUs, as applicable.
* Beneficary count is calculated based on four persons per household

Business Responsibility and Sustainability Report

198

6. Details of beneficiaries of CSR projects:

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
We are committed to surpassing client expectations consistently. We have robust mechanisms to track and respond to customer complaints and feedback in the delivery of ourservices. Our latest annual client survey indicates that most of our clients are delighted with Infosys, sustaining the positive feedback gained over the years. We have also been
appreciated for our relationship management, client-centric approach, account management, base delivery and quality of deliverables.

2. Turnover of products / services as a percentage of turnover from all products / services that carry information about Environmental and social parameters relevant to the
product, Safe and responsible usage, Recycling and / or safe disposal.
Not applicable

3. Number of consumer complaints in respect of data privacy, advertising, cybersecurity, delivery of essential services, restrictive trade practices, unfair trade practices.
There are no consumer complaints in respect of data privacy, advertising, cybersecurity, delivery of essential services, restrictive trade practices, unfair trade practices.

4. Details of instances of product recalls on account of safety issues
Not applicable

5. Does the entity have a framework / policy on cybersecurity and risks related to data privacy? (Yes / No) If yes, provide web-link of the policy.
Yes. Infosys has a holistic and comprehensive cybersecurity framework – SEED, which is aligned to NIST’s CyberSecurity Framework (CSF) and is supported by supplementary policies,
processes, procedures and standards aimed at achieving and sustaining the enterprise-level information security objectives.
Refer to https://www.infosys.com/about/corporate-responsibility/governance/information-management.html.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cybersecurity and data privacy of
customers, re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.
None.

Leadership indicators
1. Channels / platforms where information on products and services of the Company can be accessed
Refer to https://www.infosys.com/services.html.

2. Steps taken to inform and educate consumers, especially vulnerable and marginalised consumers, about safe and responsible usage of products and services.
Not applicable

3. Mechanisms in place to inform consumers of any risk of disruption / discontinuation of essential services.
Refer to Principle 6, Question 7 of Leadership indicators, in this report.

199

Yes. We carry out surveys to gauge customer satisfaction for our major services.
Customer-focused excellence demands constant sensitivity to changing and emerging customer requirements and close attention to the voice of the customer. We interact with ourclients on a regular basis across multiple platforms. In addition to various client interactions, we have adopted a formal and robust approach in the form of an annual Client Value
Survey. The survey enables us to comprehensively understand the client’s expectations and needs, and serves as one of the inputs for us to make investment decisions. The survey
framework includes a structured questionnaire and the feedback is collected through a web survey hosted by an independent organization.
5. Provide the following information relating to data breaches:a. Number of instances of data breaches along with impact
0b. Percentage of data breaches involving personally identifiable information of customers
0

Business Responsibility and Sustainability Report200

4. Does the Company display product information on the product over and above what is mandated as per local laws? Not applicable
Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of the entity or the entity as awhole? (Yes / No)

Infosys Integrated Annual Report 2022-23

Independent Assurance Statement to Infosys Limited on Select Non-Financial
Sustainability Disclosures in the Integrated Report for the Financial Year 2022-23
To
The Management of Infosys Limited
Infosys Limited,
44/97A, 3rd Cross,
Electronic City, Hosur Road,
Bangalore 560100

Introduction
We (‘KPMG Assurance and Consulting Services LLP’, or ‘KPMG’) have been engaged by Infosys Limited (‘Infosys’ or ‘the Company’) forthe purpose of providing an independent assurance on the non-financial sustainability disclosures presented in the Integrated Report(‘the Report’ or ‘IR report’) for the reporting period covering 1st April 2022 to 31st March 2023 (“the Year’’ or “the Reporting Period”). Our
responsibility was to provide independent assurance on the Report content as described in the scope, boundary, and limitations.

Reporting Criteria
The Company applies non-financial performance criteria for developing its report derived from the following:••••

The International Integrated Reporting Council’s <IR> Framework.
Global Reporting Initiative (GRI) Standards 2021.
SASB (Sustainability Accounting Standards Board) Standard for Software & IT Services.
Principles of National Guidelines on Responsible Business Conduct as part of Business Responsibility and Sustainability Report (BRSR).

Assurance Standards Used
We conducted our assurance in accordance with the following assurance standards•

Assurance requirements of the International Federation of Accountants (IFAC) International Standard on– Assurance Engagements Other than Audits or Reviews of Historical Financial Information- (ISAE 3000- revised), for the selectenvironmental and social disclosures in the Report.
– Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), for the GHG emissions data.

•
•
•
•

Under these standards, we have reviewed the information presented in the Report against the characteristics of relevance,completeness, reliability, neutrality, and understandability.
Limited assurance consists primarily of enquiries and analytical procedures. The procedures performed in a limited assurance
engagement vary in nature and timing and are less in extent than for a reasonable assurance engagement.
Reasonable assurance is a high level of assurance but it is not a guarantee that it will always detect a material misstatement when it
exists.
A reasonable assurance engagement in accordance with ISAE 3000 (revised) and ISAE 3410 involves performing procedures to obtainevidence about the quantification of emissions and related information in ‘the Report’.

Infosys Integrated Annual Report 2022-23

201

Scope, Boundary, and Limitations•

The scope of assurance covers select non-financial sustainability disclosures for the period FY 2022-23 in Infosys’ IR report, as
mentioned in the table below.
The reporting scope and boundary covers Infosys’ global operations. The following sites were selected as sample for the purpose of
the assurance.

•

1. Corporate Office, Bengaluru
2. Delivery Centre, Bengaluru
3. SEZ Delivery Centre, Hyderabad
4. Delivery Centre, Mysuru
5. Delivery Centre, Trivandrum
6. Delivery Centre, Gurugram
7. Delivery Centre, Jaipur
8. Delivery Centre, Bhubaneswar
9. Delivery Center, Chandigarh
10. Delivery Centre, Shanghai•

Following selected non-financial disclosures in ‘the Report’ were subjected to reasonable assurance:GRI Standards
Disclosures subject to Reasonable Assurance

Disclosures subject to Limited Assurance

Universal Standard- Material Topics 2021•

Disclosures on Material Topics: 3-1, 3-2, 3-3

Topic Standards – Environmental

Environmental•

Energy (2016): 302-1, 302-3, 302-4, 305-1,305-2, 305-3, 305-4••

Water & Effluents (2018): 303-4•

Emissions (2016): 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7•

Waste (2020): 306-3, 306-4, 306-5•

Supplier environmental assessment (2016): 308-1, 308-2

Water & Effluents (2018): 303-3, 303-5

Topic Standards – Social

Social•Employment (2016): 401-1, 401-2, 401-3••

Occupational health & safety (2018): 403-1, 403-2,•

Training & Education: 404-1,404-2,404-3•

Diversity & equal opportunity (2016): 405-1•

Freedom of association and collective bargaining (2016): 407-1•

Child labor (2016): 408-1•

Forced or compulsory labor (2016): 409-1•

Security practices (2016): 410-1•

Local communities (2016): 413-1, 413-2•

Supplier social assessment (2016): 414-1, 414-2•

Customer privacy (2016): 418-1

Non-Discrimination (2016): 406-1

SASB Standards for Software and IT Services Industry: Sustainability Disclosure Topics & Accounting Metrics
Disclosures subject to Reasonable Assurance

Disclosures subject to Limited Assurance•

Environmental footprint of hardware infrastructure:
TCSI-130a.1 (energy)••

Recruiting and managing a Global, Diverse and Skilled
Workforce: TCSI-330a.1, TCSI- 330a.2, and TCSI-330a.3•

Data security: TC-SI-230a.1

202

Environmental footprint of hardware infrastructure:
TCSI-130a.2 (water)

Infosys Integrated Annual Report 2022-23

Business Responsibility and Sustainability Report (BRSR)
Disclosures subject to Reasonable Assurance

Disclosures subject to Limited Assurance

Section A: General Disclosures•

Employees - A18a, A18b, A19, A20•

Transparency and Disclosures Compliances – A24

Section B: Management and Process Disclosures

Section B: Management and Process Disclosures••

Policy & Management Processes – B1 a, B1 b, B1 c, B2, B3, B4•

Governance, Leadership, and Oversight – B7, B8, B9, B11

Policy & Management Processes - B5

Section C: Principle-wise Performance Disclosure

Section C: Principle-wise Performance Disclosure•

Principle 3 – P3-E1a, P3-E5, P3-E8, P3-E10a, P3-E10b, P3-E10c,
P3-E10d, P3-E-11, P3- E14, P3- L4, P3-L5, P3-L6•

Principle 1 – P1-E1, P1-E4, P1-E5, P1-L1, P1-L2•

Principle 4 – P4-E1, P4-E2, P4-L2•

Principle 2 – P2-E2•

Principle 5 – P5-E1, P5-L3, P5-L4, P5-L5•

Principle 3 – P3-E3, P3-E4, P3-E6, P3-E7, P3-E12, P3-E13, P3- E15,
P3-L1

•

Principle 6 – P6-E1, P6-E5, P6-E6, P6-E7, P6-E8, P6-E9, P6-L1,
P6-L2, , P6-L4, P6-L6, P6-L7, P6-L8, P6-L9•

Principle 4 – P4-L1•

Principle 8 – P8-E1, P8-E2,•

Principle 5 – P5-E2, P5-E4, P5-E5, P5-E6, P5-E7, P5-E8, P5-E9,
P5- E10, P5-L2•

Principle 9 – P9-E3, P9-E5, P9-L5•

Principle 6 – P6-E3, P6-E4, P6-E11, P6-L3•

Principle 8 – P8-E3, P8-E4•

Principle 9 – P9-E1, P9-E6, P9-L4

Limitations
The assurance scope excludes the following:
•
•
•

•
•
•
•

Data related to the Company’s financial performance.
Data and information outside the defined reporting period.
The Company’s statements that describe the progress on goals other than those listed under the scope above, expression of opinion,
belief, claims, aspiration, expectation, aim to future intention provided by the Company, and assertions related to Intellectual
Property Rights and other competitive issues.
Data review was limited to the sites mentioned above.
Strategy and other related linkages expressed in the Report.
Mapping of the Report with reporting frameworks other than those mentioned in Reporting Criteria above.
Aspects of the Report other than those mentioned under the scope above.

Assurance Procedures
Our assurance process involves performing procedures to obtain evidence about the reliability of the specified disclosures. The nature,timing, and extent of the procedures selected depend on our judgment, including the assessment of the risks of material misstatementof the selected sustainability disclosures whether due to fraud or error. In making those risk assessments, we have considered internal
controls relevant to the preparation of the Report to design assurance procedures that are appropriate in the circumstances.
Our assurance procedures also included:
•
•
•
•
•
•

Assessment of the Company’s reporting procedures regarding their consistency with the respect to the reporting criteria.
Understanding the appropriateness of various assumptions, estimations, and materiality thresholds used by the Company for data
analysis.
Evaluating the appropriateness of the quantification methods used to arrive at the sustainability disclosures presented in the Report.
Review of the systems and procedures used for quantification, collation, and analysis of sustainability disclosures included in theReport.
Discussions with the personnel at the corporate and business unit level responsible for the data and information presented in theReport.
Assessment of data reliability and accuracy.

Infosys Integrated Annual Report 2022-23

203

Appropriate documentary evidences were reviewed to support our conclusions on the information and data verified. Where such
documentary evidence could not be collected due to the sensitive nature of the information, our team reviewed the same with therelevant authority at respective sites and at the corporate office.

Conclusions
We have reviewed the select non-financial sustainability disclosures in the Integrated Report of Infosys Limited for the reporting period
from 1st April 2022 to 31st March 2023. We have provided our observations to the Company in a separate management letter. These do
not however affect our conclusions regarding the Report. Based on our review and procedures performed and in line with the boundary,scope, and limitations as described above, we conclude that:
Reasonable Assurance:
The select non-financial sustainability disclosures which have been subjected to reasonable assurance as defined under the scope ofassurance, are fairly stated in all material aspects.
Limited Assurance:
Nothing has come to our attention that causes us not to believe that the select non-financial sustainability disclosures which have been
subjected to limited assurance as defined under the scope of assurance, are appropriately stated in all material aspects.

Independence
The assurance was conducted by a multidisciplinary team including professionals with suitable skills and experience in auditing
environmental, social, and economic information as per the requirements of ISAE 3000 (Revised) and ISAE 341O standards.
Our work was performed in compliance with the requirements of the IFAC Code of Ethics for Professional Accountants, which
requires, among other requirements, that the members of the assurance team (practitioners) be independent of the assurance client,in relation to the scope of this assurance engagement, including not being involved in writing the Report. The Code also includes
detailed requirements for practitioners regarding integrity, objectivity, professional competence, and due care, confidentiality,and professional behavior. KPMG has systems and processes in place to monitor compliance with the Code and to prevent conflicts
regarding independence. The firm applies ISQC-1, and the practitioner complies with the applicable independence and other ethicalrequirements of the IESBA Code.

Responsibilities
Infosys Limited is responsible for developing the Report contents. The Company is also responsible for the identification of material
sustainability topics, establishing and maintaining appropriate performance management and internal control systems, and derivationof performance data reported. This statement is made solely to the Management of Infosys Limited in accordance with the terms of ourengagement and as per the scope of assurance. Our work has been undertaken so that we might state to the Company those mattersfor which we have been engaged to state in this statement and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company for our work, for this report, or for the conclusions expressed in thisindependent assurance statement. The assurance engagement is based on the assumption that the data and information provided to us
is complete and true. We expressly disclaim any liability or co-responsibility for any decision a person or entity would make based on thisassurance statement. Our report is released to Infosys Limited on the basis that ii shall not be copied, referred to or disclosed, in whole orin part, without our prior written consent. By reading this assurance statement, stakeholders acknowledge and agree to the limitations
and disclaimers mentioned above.
Sd/Anand S Kulkarni,

Technical Director, ESG Services

KPMG Assurance and Consulting Services LLP
Date: 29-May-2023

204

Infosys Integrated Annual Report 2022-23

Statutory reports

CEO and CFO certification
The Board of Directors
Infosys Limited, Bengaluru
Dear members of the Board,
We, Salil Parekh, Chief Executive Officer and Managing Director, and Nilanjan Roy, Chief Financial Officer of Infosys Limited, to the best of
our knowledge and belief, certify that:
1. We have reviewed the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss, the Statement of Changes in Equity andthe Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other explanatory
information of the Company, and the Board’s report for the year ended March 31, 2023.
2. These statements do not contain any materially untrue statement or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered bythis report.
3. The financial statements, and other financial information included in this report, present in all material respects a true and fair viewof the Company’s affairs, the financial condition, results of operations and cash flows of the Company as at, and for, the periods
presented in this report, and are in compliance with the existing accounting standards and / or applicable laws and regulations.
4. There are no transactions entered into by the Company during the year that are fraudulent, illegal or violate the Company’s Code of
Conduct and Ethics, except as disclosed to the Company’s auditors and the Company’s Audit Committee of the Board of Directors.
5. We are responsible for establishing and maintaining disclosure controls and procedures and internal controls over financial reportingfor the Company, and we have:a. Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our
supervision to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which this report is being prepared.
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with Indian Accounting Standards (Ind AS).
c. Evaluated the effectiveness of the Company’s disclosure, controls and procedures.
d. Disclosed in this report, changes, if any, in the Company’s internal control over financial reporting that occurred during the Company’s
most recent financial year that has materially affected, or is reasonably likely to materially affect, the Company’s internal control overfinancial reporting.
6. We have disclosed, based on our most recent evaluation of the Company’s internal control over financial reporting, whereverapplicable, to the Company’s auditors and the Audit Committee of the Company’s Board (and persons performing the equivalentfunctions):
a. Any deficiencies in the design or operation of internal controls, that could adversely affect the Company’s ability to record, process,summarize and report financial data, and have confirmed that there have been no material weaknesses in internal controls overfinancial reporting including any corrective actions with regard to deficiencies.
b. Any significant changes in internal controls during the year covered by this report.
c. All significant changes in accounting policies during the year, if any, and the same have been disclosed in the notes to thefinancial statements.
d. Any instances of significant fraud of which we are aware, that involve the Management or other employees who have a significant rolein the Company’s internal control system over financial reporting.
7. We affirm that we have not denied any personnel access to the Audit Committee of the Company (in respect of matters involving
alleged misconduct) and we have provided protection to whistleblowers from unfair termination and other unfair or prejudicial
employment practices.
8. We further declare that all Board members and senior management personnel have affirmed compliance with the Code of Conduct
and Ethics for the year covered by this report.

Bengaluru
April 13, 2023

Infosys Integrated Annual Report 2022-23

Sd/-

Sd/-

Salil Parekh

Nilanjan Roy

Chief Executive Officer and Managing Director

Chief Financial Officer

205

Standalone Financial Statements under Indian Accounting Standards (Ind AS) for theyear ended March 31, 2023
Index
A Independent Auditor’s Report...................................................................................................................................................................................................207
B Balance Sheet....................................................................................................................................................................................................................................219
C Statement of Profit and Loss.......................................................................................................................................................................................................221
D Statement of Changes in Equity................................................................................................................................................................................................223
E Statement of Cash Flows...............................................................................................................................................................................................................229
F Overview and Notes to the Standalone Financial Statements.......................................................................................................................................231
1. Overview
1.1 Company overview ................................................................................................................................................................................................................231
1.2 Basis of preparation of financial statements.................................................................................................................................................................231
1.3 Use of estimates and judgments.......................................................................................................................................................................................231
1.4 Critical accounting estimates and judgments..............................................................................................................................................................231
1.5 Recent accounting pronouncements..............................................................................................................................................................................232
2. Notes to the Standalone financial statements
2.1 Property, plant and equipment.........................................................................................................................................................................................232
2.2 Goodwill and other intangible assets.............................................................................................................................................................................235
2.3 Leases .........................................................................................................................................................................................................................................236
2.4 Capital work-in-progress......................................................................................................................................................................................................238
2.5 Investments...............................................................................................................................................................................................................................239
2.6 Loans............................................................................................................................................................................................................................................244
2.7 Other financial assets.............................................................................................................................................................................................................244
2.8 Trade receivables.....................................................................................................................................................................................................................245
2.9 Cash and cash equivalents...................................................................................................................................................................................................246
2.10 Other assets .............................................................................................................................................................................................................................246
2.11 Financial instruments ...........................................................................................................................................................................................................247
2.12 Equity..........................................................................................................................................................................................................................................255
2.13 Other financial liabilities......................................................................................................................................................................................................262
2.14 Trade payables.........................................................................................................................................................................................................................262
2.15 Other liabilities........................................................................................................................................................................................................................264
2.16 Provisions..................................................................................................................................................................................................................................264
2.17 Income taxes............................................................................................................................................................................................................................2642.18 Revenue from operations....................................................................................................................................................................................................267
2.19 Other income, net..................................................................................................................................................................................................................270
2.20 Expenses...................................................................................................................................................................................................................................271
2.21 Employee benefits.................................................................................................................................................................................................................271
2.22 Reconciliation of basic and diluted shares used in computing earnings per equity share.......................................................................276
2.23 Contingent liabilities and commitments......................................................................................................................................................................277
2.24 Related party transactions.................................................................................................................................................................................................277
2.25 Corporate Social Responsibility (CSR)............................................................................................................................................................................287
2.26 Segment reporting...............................................................................................................................................................................................................287
2.27 Ratios..........................................................................................................................................................................................................................................287
2.28 Function-wise classification of Statement of Profit and Loss...............................................................................................................................288

206

Infosys Integrated Annual Report 2022-23

Independent Auditor’s Report
To The Members Of Infosys Limited

Report on the Audit of the Standalone Financial Statements
OpinionWe have audited the accompanying standalone financial statements of INFOSYS LIMITED (the “Company”), which comprise the Balance
Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year ended on that date and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as the “standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the stateof affairs of the Company as at March 31, 2023 and its profit, total comprehensive income, changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the 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 Auditof the 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 auditof the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtainedby us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report.

Infosys Integrated Annual Report 2022-23

207

Standalone Financial Statements
Sr. No.

Key Audit Matter

1

Revenue recognition
The Company’s contracts with customers include contracts with multiple products and services. The Company derives
revenues from IT services comprising software development and related services, maintenance, consulting and package
implementation, licensing of software products and platforms across the Company’s core and digital offerings and businessprocess management services. The Company assesses the services promised in a contract and identifies distinct performanceobligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of
the customer to benefit independently from such deliverables involves significant judgement.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party vendor
equipment or software. In these types of arrangements, revenue from sales of third-party vendor products or services isrecorded 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 products orservice before it is transferred to the customer. The Company considers whether it has the primary obligation to fulfil thecontract, inventory risk, pricing discretion and other factors to determine whether it controls the products or service andtherefore, is acting as a principal or an agent.
Fixed price maintenance revenue is recognized ratably either on (1) a straight-line basis when services are performed
through an indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method
when the pattern of benefits from the services rendered to the customer and the 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. The use of
method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and natureof the deliverables.
As certain contracts with customers involve management’s judgment in (1) identifying distinct performance obligations,(2) determining whether the Company is acting as a principal or an agent and (3) whether fixed price maintenance revenue
is recognized on a straight-line basis or using the percentage of completion method, revenue recognition from thesejudgments were identified as a key audit matter and required a higher extent of audit effort.
Refer Notes 1.4 and 2.18 to the standalone financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to the (1) identification of distinct performance obligations, (2) determination of whether theCompany is acting as a principal or agent and (3) whether fixed price maintenance revenue is recognized on a straight-line
basis or using the percentage of completion method included the following, among others :••We tested the effectiveness of controls relating to the (a) identification of distinct performance obligations, (b)determination of whether the Company is acting as a principal or an agent and (c) determination of whether fixed pricemaintenance revenue for certain contracts is recognized on a straight-line basis or using the percentage of completion
method.
We selected a sample of contracts with customers and performed the following procedures :– Obtained and read contract documents for each selection, including master service agreements, and other documentsthat were part of the agreement.
– Identified significant terms and deliverables in the contract to assess management’s conclusions regarding the(i) identification of distinct performance obligations (ii) whether the Company is acting as a principal or an agentand (iii) whether fixed price maintenance revenue is recognized on a straight-line basis or using the percentage ofcompletion method.

208

Infosys Integrated Annual Report 2022-23

Sr. No.

Key Audit Matter

2

Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed throughan indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method when
the pattern of benefits from services rendered to the customer and the Company’s costs to fulfil the contract is not eventhrough the period of contract because the services are generally discrete in nature and not repetitive. Revenue from otherfixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using thepercentage-of-completion method.
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 tomeasure 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.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage ofcompletion method as a key audit matter as the estimation of total efforts or costs involves significant judgement andis assessed throughout the period of the contract to reflect any changes based on the latest available information. Thisestimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs incurred
to-date and estimates of efforts or costs required to complete the remaining contract performance obligations over theterm of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort toevaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.4 and 2.18 to the standalone financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts included thefollowing, among others :••We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application controls
pertaining to time recording, allocation and budgeting systems which prevents unauthorised changes to recording ofefforts incurred.
We selected a sample of fixed price contracts with customers measured the using percentage-of-completion method andperformed the following :– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligationby comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performanceobligations that have been fulfilled.
– Compared efforts or costs incurred with Company’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.

Infosys Integrated Annual Report 2022-23

209

Standalone Financial Statements
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information includedin the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility andSustainability Report, Corporate Governance and Shareholder’s Information, but does not include the consolidated financial statements,
standalone financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparationof these standalone financial statements that give a true and fair view of the financial position, financial performance, including
other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting
principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance withthe 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 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 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 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 Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 highlevel 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 statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout
the audit. We also :
•

•

•
•

•

210

Identify and assess the risks of material misstatement of the 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 abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the 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 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 orconditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, andwhether the standalone financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
Infosys Integrated Annual Report 2022-23

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probablethat the economic decisions of a reasonably knowledgeable user of the 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit andsignificant 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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in theaudit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements
1.

As required by Section 143(3) of the Act, based on our audit we report that :a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c)

The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity
and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Boardof Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of
Section 164(2) of the Act.
f)

With respect to the adequacy of the internal financial controls with reference to standalone financial statements of theCompany and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses
an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls withreference to standalone financial statements.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section
197(16) of the Act, as amended :In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by theCompany to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the
explanations given to us :i.

The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements. Refer Note 2.23 to the standalone financial statements.

ii.

The Company has made provision as required under applicable law or accounting standards for material
foreseeable losses. Refer Note 2.16 to the standalone financial statements. The Company did not have any long-term
derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
iv.

(a) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the note 2.24
to the Standalone Financial Statements, no funds (which are material either individually or in the aggregate) have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding,whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

Infosys Integrated Annual Report 2022-23

211

Standalone Financial Statements(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person or entity, including foreign
entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any material misstatement.
v.

As stated in Note 2.12.3 to the standalone financial statements(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordancewith Section 123 of the Act, as applicable.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is incompliance with Section 123 of the Act.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval ofthe members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section
123 of the Act, as applicable.

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software
which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023,
and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for thefinancial year ended March 31, 2023.
2.

As required by the Companies (Auditor’s Report) Order, 2020 (the “Order”) issued by the Central Government in terms of Section
143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner

Place : Bengaluru
Date : April 13, 2023

212

(Membership No.039826)
UDIN : 23039826BGXRYR4513

Infosys Integrated Annual Report 2022-23

Annexure “A” to the Independent Auditor’s Report(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members ofInfosys Limited of even date)
Report on the Internal Financial Controls with reference to Standalone Financials Statements under Clause (i) of sub-section 3of Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls with reference to standalone financial statements of INFOSYS LIMITED (the“Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year
ended on that date.

Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial controls with reference to standalone
financial statements based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India (the “ICAI”). These responsibilities include the design, implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls with reference to standalone financial statements
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the Act, to theextent applicable to an audit of internal financial controls with reference to standalone financial statements. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference to standalone financial statements was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference
to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone
financial statements included obtaining an understanding of internal financial controls with reference to standalone financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls with reference to standalone financial statements .

Meaning of Internal Financial Controls with reference to standalone financial statements
A company's internal financial control with reference to standalone financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control with reference to standalone financial statements
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorisations of management and directors of the company;and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections ofany evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to therisk that the internal financial control with reference to standalone financial statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Infosys Integrated Annual Report 2022-23

213

Standalone Financial Statements
OpinionIn our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, anadequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference
to standalone financial statements were operating effectively as at March 31, 2023, based on the criteria for internal financial control
with reference to standalone financial statements established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner

Place : Bengaluru
Date : April 13, 2023

214

(Membership No.039826)
UDIN : 23039826BGXRYR4513

Infosys Integrated Annual Report 2022-23

Annexure ‘B’ to the Independent Auditor’s Report(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Infosys
Limited of even date)To the best of our information and according to the explanations provided to us by the Company and the books of account and records
examined by us in the normal course of audit, we state that :i.

In respect of the Company’s property, plant and equipment, right-of-use assets and intangible assets :(a)(A) The Company has maintained proper records showing full particulars, including quantitative details and situation ofproperty, plant and equipment and relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.

(b) The Company has a program of physical verification of property, plant and equipment and right-of-use assets so to cover
all the assets once every three years which, in our opinion, is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the program, certain property, plant and equipment and right-of-use assets were due forverification during the year and were physically verified by the Management during the year. According to the informationand explanations given to us, no material discrepancies were noticed on such verification.
(c)Based on our examination of the property tax receipts and lease agreement for land on which building is constructed,
registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title in respect of selfconstructed buildings and title deeds of all other immovable properties (other than properties where the company is thelessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included
under property, plant and equipment are held in the name of the Company as at the balance sheet date.

(d) The Company has not revalued any of its property, plant and equipment (including right-of-use assets) and intangible
assets during the year.

ii.

(e)

No proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 forholding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) andrules made thereunder.

(a)

The Company does not have any inventory and hence reporting under clause 3(ii)(a) of the Order is not applicable.

(b) The Company has not been sanctioned working capital limits in excess of ₹ 5 crore, in aggregate, at any points of time
during the year, from banks or financial institutions on the basis of security of current assets and hence reporting underclause 3(ii)(b) of the Order is not applicable.
iii.

The Company has made investments in, Companies and granted unsecured loans to other parties, during the year,
in respect of which :(a)

The Company has provided loans during the year, and details of which are given below :Particulars

Amount ₹ crore

Aggregate amount granted during the year
– Subsidiaries

427

Balance outstanding as at balance sheet date in respect of above cases :– Subsidiaries

43(b) In our opinion, the investments made and the terms and conditions of the grant of loans, during the year are, prima facie,
not prejudicial to the Company’s interest.
(c)

In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been
stipulated and the repayments of principal amounts and receipts of interest are generally been regular as per stipulation.

(d) In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at
the balance sheet date.
(e)

No loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans
granted to settle the overdues of existing loans given to the same parties.

(f)

The Company has not granted any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable.

The Company has not made investments in Firms and Limited Liability Partnerships during the year. Further the Company has
not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to Companies,
Firms, Limited Liability Partnerships or any other parties.
Infosys Integrated Annual Report 2022-23

215

Standalone Financial Statements
iv.

The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted,
investments made and guarantees and securities provided, as applicable.

v.

The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of
the Order is not applicable.

vi.

The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of theCompanies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause (vi) of the Order is
not applicable to the Company.

vii.

In respect of statutory dues :(a)In our opinion, the Company has generally been regular in depositing undisputed statutory dues, including Goods andServices tax, Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise,
Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees’ State
Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material
statutory dues in arrears as at March 31, 2023 for a period of more than six months from the date they became payable.

(b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2023 on
account of disputes are given below :Nature of the statute

Nature of dues

Forum where Dispute is Pending

Period to which theAmount Relates

The Income Tax Act, 1961

Income Tax

Income Tax Appellate Tribunal

AY (1) 2016-17- (4)Income Tax

Commissioner (Appeals)

AY (1) 2010-11,
AY (1) 2013-14,
AY (1) 2016-17,
AY (1) 2019-20,
AY (1) 2021-22 to
AY (1) 2023-24

2,511

Income Tax

Assessing Officer

AY 2008-09 to
AY (1) 2023-24

3,844

Equalisation Levy

Assessing Officer

AY2021-22- (4)Customs Act, 1962

Duty of Custom

Specified Officer of Special Economic
Zone

FY 2008-09 to
FY (1) 2011-12

5

Central Excise Act, 1944

Duty of Excise

Supreme Court (3)FY (1) 2005-06 to
FY (1) 2015-16

68

Duty of Excise

Customs Excise and Service Tax
Appellate Tribunal

FY (1) 2015-16

(1)

(1)
(1)

- (4)

Goods and Service Tax Act,
2017

Goods and Service Tax Additional Commissioner (Appeals)

FY (1) 2019-20

Sales Tax Act and VAT Laws

Sales Tax

Joint Commissioner (Appeals) (3)FY (1) 2006-07 to
FY (1) 2010-11 andFY (1) 2014-15 to
FY (1) 2016-17

21

Sales TaxHigh Court of Andhra Pradesh

FY (1) 2007-08- (4)Service Tax

Customs Excise and Service Tax
Appellate Tribunal (2)FY (1) 2004-05 to
FY (1) 2017-18

317

Service Tax

Commissioner (Appeals)

FY 2015-16 toFY (1) 2017-18

1

The National Internal
Revenue Code of 1997

Corporate Income tax

Commissioner of Bureau of Internal
Revenue, Philippines

FY

(1)

The National Internal
Revenue Code of 1997

Withholding tax

Commissioner of Bureau of Internal
Revenue, Philippines

FY

(1)

The National Internal
Revenue Code of 1997

Value Added Tax

Commissioner of Bureau of Internal
Revenue, Philippines

FY

(1)

Income Tax Assessment Act(ITAA 1936)

Corporate Income tax

Administrative Appeals Tribunal,
Australia

FY 2011-12 toFY (1) 2016-17

Finance Act, 1994

216

Amount₹ crore6(1)

2017-18
2017-18
2017-18

1
1
2

(1)

182

Infosys Integrated Annual Report 2022-23

Nature of the statute

Nature of dues

Forum where Dispute is Pending

UK Finance Act 1998

Corporation Tax

Her Majesty's Revenue and Customs
FY (1) 2014-15 to(HMRC) Tax Officer, United Kingdom (3) FY (1) 2016-17

202

Central Sales Tax Act, 1956

Central Sales Tax

Joint Commissioner (Appeals)

FY (1) 2016-17- (4)The Karnataka [Gram Swaraj Panchayat Property
and Panchayat Raj] Act, 1993 Tax

High Court of Karnataka at Bengaluru

FY 2017-18 toFY (1) 2020-21

Greater Hyderabad
Municipal Corporation Act,
1955

Ministry for Information Technology& Municipal Administration & Urban
Development

FY (1) 2021-22 toFY (1) 2022-23

Trade Licence Fee

Period to which theAmount Relates

Amount₹ crore

(1)

32

3

Footnotes :(1)

AY=Assessment Year; FY= Financial Year.

(2)

Stay order has been granted against ₹60 crore disputed which has not been deposited.

(3)

Stay order has been granted.

(4)Less than ₹ 1 crore.

viii.

There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix.

(a)

The Company has not taken any loans or other borrowings from any lender. Hence reporting under clause 3(ix)(a) of theOrder is not applicable.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(c)

The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of theyear and hence, reporting under clause 3(ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie,
not been used during the year for long-term purposes by the Company.

x.

(e)

On an overall examination of the financial statements of the Company, the Company has not taken any funds from any
entity or person on account of or to meet the obligations of its subsidiaries.

(f)

The Company has not raised any loans during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable.

(a)

The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible
debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi.

(a)

No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed underrule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto thedate of this report.
(c)

We have taken into consideration the whistle blower complaints received by the Company during the year (and upto thedate of this report), while determining the nature, timing and extent of our audit procedures.

xii.

The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.

xiii.

In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicabletransactions with the related parties and the details of related party transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards.

Infosys Integrated Annual Report 2022-23

217

Standalone Financial Statements
xiv.

(a)

In our opinion the Company has an adequate internal audit system commensurate with the size and thenature of its business.

(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date,in determining the nature, timing and extent of our audit procedures.
xv.

In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons
connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi.

(a)

In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies(Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii.

The Company has not incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.

xviii.

There has been no resignation of the statutory auditors of the Company during the year.

xix.

On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptions, nothing has come to ourattention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that
Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of
the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date,
will get discharged by the Company as and when they fall due.

xx.

(a)

There are no unspent amounts towards Corporate Social Responsibility (“CSR”) on other than ongoing projects requiring atransfer to a Fund specified in Schedule VII to the Companies Act, 2013 in compliance with second proviso to sub-section(5)of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.

(b) In respect of ongoing projects, the Company has transferred unspent CSR amount as at the end of the previous financial
year, to a Special account within a period of 30 days from the end of the said financial year in compliance with the provisionof section 135(6) of the Companies Act, 2013.
In respect of ongoing projects, the Company has not transferred the unspent CSR amount as at the Balance Sheet date outof the amounts that was required to be spent during the year, to a Special Account in compliance with the provision of subsection (6) of section 135 of the said Act till the date of our report since the time period for such transfer i.e. 30 days fromthe end of the financial year has not elapsed till the date of our report.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner

Place : Bengaluru
Date : April 13, 2023

218

(Membership No.039826)
UDIN : 23039826BGXRYR4513

Infosys Integrated Annual Report 2022-23

Balance Sheet(In ₹ crore)

Particulars

Note

As at March 31,
2023

2022

AssetsNon-current assets
Property, plant and equipment

2.1

11,656

11,384Right-of-use assets

2.3

3,561

3,311

Capital work-in-progress

2.4

275

411

Goodwill

2.2

211

211

Other intangible assets

2.2

3

32

Investments

2.5

23,68622,869

Loans

2.6

39

34

Other financial assets

2.7

1,341

727

Deferred tax assets (net)

2.17

779

970

Financial assets

Income tax assets (net)

2.17

5,916

5,585

Other non-current assets

2.10

1,788

1,416

49,255

46,950Total non-current assets
Current assets
Financial assets
Investments

2.5

4,476

5,467

Trade receivables

2.8

20,773

18,966

Cash and cash equivalents

2.9

6,534

12,270

Loans

2.6

291

219

2.7

9,088

6,580

Other financial assets
Other current assets

2.10

10,9208,935

Total current assets

52,082

52,437

Total assets

1,01,337

99,387

Infosys Integrated Annual Report 2022-23

219

Standalone Financial Statements

Balance Sheet (contd.)
Particulars

Note

As at March 31,
2023

2022

2,074

2,103

Equity and liabilities
EquityEquity share capital

2.12

Other equity
Total equity

65,671

67,20367,74569,306

Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities

2.3

3,553

3,228

Other financial liabilities

2.13

1,317

676

Deferred tax liabilities (net)

2.17

866

841

Other non-current liabilities

2.15

414

360

6,150

5,105

713

558

Total outstanding dues of micro enterprises and small
enterprises

97

3

Total outstanding dues of creditors other than microenterprises and small enterprises

2,329

2,666

2.13

12,697

11,269Other current liabilities

2.15

7,609

7,381

Provisions

2.16

1,163

920

Income tax liabilities (net)

2.17

2,834

2,179

27,442
1,01,337

24,976
99,387

Total non-current liabilities
Current liabilities
Financial liabilities
Lease liabilities

2.3

Trade payables

2.14

Other financial liabilities

Total current liabilities
Total equity and liabilities

The accompanying notes form an integral part of the 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
Partner

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023

220

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary

Infosys Integrated Annual Report 2022-23

Statement of Profit and Loss(In ₹ crore, except equity share and per equity share data)

Particulars

Note

2023

2022

Revenue from operations

2.18

1,24,014

1,03,940

Other income, net

2.19

3,859

3,224

1,27,873

1,07,164

Total income

Year ended March 31,

Expenses
Employee benefit expenses

62,764

51,664

Cost of technical sub-contractors

19,096

16,298Travel expenses

1,227

731

5,214

2,985

502

433

Cost of software packages and others

2.20

2.20

Communication expenses
Consultancy and professional charges
Depreciation and amortization expenses

2.1, 2.2.2 and 2.3

1,236

1,511

2,753

2,429

Finance cost

2.3

157

128

Other expenses

2.20

3,281

2,490

Total expenses

96,23078,669Profit before tax

31,64328,495

Tax expense :Current tax

2.17

8,167

6,960

Deferred tax

2.17

208

300

23,26821,235

Profit for the year

Infosys Integrated Annual Report 2022-23

221

Standalone Financial Statements

Statement of Profit and Loss (contd.)
Particulars

NoteYear ended March 31,
2023

2022

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net

2.17 and 2.21

(19)

(98)

Equity instruments through other comprehensive income, net

2.5 and 2.17

(6)

97

Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net

2.11 and 2.17

(7)

(8)

Fair value changes on investments, net

2.5 and 2.17

(236)

(39)

(268)

(48)

23,00021,187

Basic (₹)

55.48

50.27

Diluted (₹)

55.42

50.21

Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
Earnings per equity share
Equity shares of par value ₹5 each

Weighted average equity shares used in computing earnings per equity share
Basic

2.22

419,38,13,881

422,43,39,562

Diluted2.22

419,82,34,378

422,95,46,328

The accompanying notes form an integral part of the 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
Partner

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023

222

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Statement of Changes in Equity(In ₹ crore)

Particulars

Equityshare
capitalOther equity
Reserves and surplus
Capital reserve
CapitalOther
reserve reserves (2)Balance as at
April 1, 2021

Capital Securities
redemption premium
reserve

Retained Generalearnings reserve

Share
options
outstanding
account

Total equity
attributable
Other comprehensive income
to equity
SpecialEquity Effective
Other items
holders of
Economic
instruments portion ofof other the Company
Zone through other cash flow comprehensive(SEZ) Re- comprehensive
hedges income / (loss)
investment
incomeReserve (1)

2,130

54

2,906

111

581

57,518

1,663

372

6,144

169

10

(127)

71,531

Profit for the year

–

–

–

–

–

21,235

–

–

–

–

–

–

21,235Remeasurementof the net defined
benefit liability /asset, net *

–

–

–

–

–

–

–

–

–

–

–

(98)

(98)

Equityinstruments
through othercomprehensive
income, net *(Refer to Notes 2.5
and 2.17)

–

–

–

–

–

–

–

–

–

97

–

–

97

Fair value changes
on derivatives
designated as
cash flow hedge,
net * (Refer toNote 2.11)

–

–

–

–

–

–

–

–

–

–

(8)

–

(8)

Fair value changes
on investments,
net * (Refer toNotes 2.5 and 2.17)

–

–

–

–

–

–

–

–

–

–

–

(39)

(39)

Total
comprehensive
income for the
year

–

–

–

–

–

21,235

–

–

–

97

(8)

(137)

21,187

Changes inequity for theyear ended
March 31, 2022

223

EquitysharecapitalOther equity
Reserves and surplus
Capital reserve
CapitalOther
reserve reserves (2)Capital Securities
redemption premium
reserve

Total equity
attributable
to equity
Effective
Other items
holders of
portion ofof other the Company
cash flow comprehensive
hedges income / (loss)

Other comprehensive income

Retained Generalearnings reserve

Share
options
outstanding
account

SpecialEquityEconomic
instruments
Zone through other(SEZ) Re- comprehensive
investment
incomeReserve (1)Infosys Integrated Annual Report 2022-23

Buyback of equity
shares ** (Refer toNote 2.12)

(28)

–

–

–

(640)

(8,822)(1,603)

–

–

–

–

–

(11,093)

Transaction
cost relating tobuyback *

–

–

–

–

–

–

(24)

–

–

–

–

–

(24)

Amounttransferred
to capital
redemption
reserve uponbuyback

–

–

–

28

–

–

(28)

–

–

–

–

–

–

Transferred toSpecial Economic
Zone (SEZ)
Re-investment
Reserve

–

–

–

–

–

(2,794)

–

–

2,794

–

–

–

–

Transferred fromSpecial Economic
Zone (SEZ)
Re-investment
Reserve on
utilization

–

–

–

–

–

1,012

–

–

(1,012)

–

–

–

–

Transferredon account of
exercise of stock
options (Refer toNote 2.12)

–

–

–

–

218

–

–

(218)

–

–

–

–

–

Transfer on
account of
options not
exercised

–

–

–

–

–

–

1

(1)

–

–

–

–

–

Shares issued
on exercise of
employee stock
options (Refer toNote 2.12)

1

–

–

–

10

–

–

–

–

–

–

–

11

Standalone Financial Statements

224

Particulars

Infosys Integrated Annual Report 2022-23

Particulars

Equityshare
capitalOther equity
Reserves and surplus
Capital reserve
CapitalOther
reserve reserves (2)Capital Securities
redemption premium
reserve

Retained Generalearnings reserve

Share
options
outstanding
account

Total equity
attributable
Other comprehensive income
to equity
SpecialEquity Effective
Other items
holders of
Economic
instruments portion ofof other the Company
Zone through other cash flow comprehensive(SEZ) Re- comprehensive
hedges income / (loss)
investment
incomeReserve (1)Employee stockcompensation
expense (Refer toNote 2.12)

–

–

–

–

–

–

–

393

–

–

–

–

393

Income tax
benefit arising on
exercise of stock
options

–

–

–

–

3

–

–

60

–

–

–

–

63

Reserves
recorded uponbusiness transfer
under common
control (3) (Refer toNote 2.5.1)

–

–

(62)

–

–

–

–

–

–

–

–

–

(62)

Dividends

–

–

–

–

–

(12,700)

–

–

–

–

–

–

(12,700)

2,103

54

2,844

139

172

55,449

9

606

7,926

266

2

(264)

69,306

Balance as at
March 31, 2022

225

Particulars

Equityshare
capital(In ₹ crore)

Other equity
Reserves and surplus

Total equity
attributable
to equity
Other items
Effective
holdersof otherportion ofof thecash flow comprehensive
Company
hedges income / (loss)

Other comprehensive income

Capital reserve
Capital Securities Retained General
Shareoptions
CapitalOther redemption premium earnings reserve
reserve
outstanding
reserve reserves (2)account

SpecialEquityEconomic
instruments
Zone through other(SEZ) Re- comprehensive
investment
incomeReserve (1)Balance as at
April 1, 2022

2,103

54

2,844

139

172

55,449

9

606

7,926

266

2

(264)

69,306

Impact on
adoption ofamendment to
Ind AS 37 #

–

–

–

–

–

(9)

–

–

–

–

–

–

(9)

2,103

54

2,844

139

172

55,440

9

606

7,926

266

2

(264)

69,297

Profit for the year

–

–

–

–

–

23,268

–

–

–

–

–

–

23,268Remeasurementof the net
defined benefit
liability / asset, net *

–

–

–

–

–

–

–

–

–

–

–

(19)

(19)

Equity instruments
through othercomprehensive
income, net *(Refer to Notes 2.5
and 2.17)

–

–

–

–

–

–

–

–

–

(6)

–

–

(6)

Fair value changes
on derivatives
designated as cash
flow hedge, net *(Refer to Note 2.11)

–

–

–

–

–

–

–

–

–

–

(7)

–

(7)

Fair value changes
on investments,
net * (Refer to Notes
2.5 and 2.17)

–

–

–

–

–

–

–

–

–

–

–

(236)

(236)

Total
comprehensive
income for the
year

–

–

–

–

–

23,268

–

–

–

(6)

(7)

(255)

23,000Changes inequity for theyear ended
March 31, 2023

Standalone Financial Statements

226

Statement of Changes in Equity (contd.)

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Particulars

Equityshare
capitalOther equity
Reserves and surplus
Capital reserve

Capital Securities Retained General
Shareoptions
CapitalOther redemption premium earnings reserve
reserve
outstanding
reserve reserves (2)account

Total equity
attributable
Other comprehensive income
to equity
SpecialEquityEffective
Other items
holders
Economic
instruments portion ofof otherof theZone through other cash flow comprehensive
Company(SEZ) Re- comprehensive
hedges income / (loss)
investment
incomeReserve (1)227Buyback of equity
shares ** (Refer toNote 2.12)

(30)

–

–

–

(340)

(11,096)

–

–

–

–

–

–

(11,466)

Transaction cost
relating tobuyback *

–

–

–

–

(19)

(5)

–

–

–

–

–

–

(24)

Amounttransferred tocapital redemption
reserve uponbuyback

–

–

–

30

–

(21)

(9)

–

–

–

–

–

–

Transferred toSpecial Economic
Zone (SEZ)
Re-investment
Reserve

–

–

–

–

–

(3,125)

–

–

3,125

–

–

–

–

Transferredfrom Special
Economic Zone
Re-investment
Reserve on
utilization

–

–

–

–

–

1,397

–

–

(1,397)

–

–

–

–

Transferred on
account of exerciseof stock options(Refer to Note 2.12)

–

–

–

–

291

–

–

(291)

–

–

–

–

–

Transferred on
account of options
not exercised

–

–

–

–

–

–

2

(2)

–

–

–

–

–

Shares issued
on exercise of
employee stock
options (Refer toNote 2.12)

1

–

–

–

29

–

–

–

–

–

–

–

30

Employee stockcompensation
expense (Refer toNote 2.12)

–

–

–

–

–

–

–

514

–

–

–

–

514

EquitysharecapitalIncome tax benefit
arising on exerciseof stock options

Other equity
Reserves and surplus
Capital reserve
Capital Securities Retained General
Shareoptions
CapitalOther redemption premium earnings reserve
reserve
outstanding
reserve reserves (2)account

–

–

–

–

Reserves oncommon control
transaction (Refer
to Note 2.5.1)

–

–

18

–

–

–

Dividends

–

–

–

–

–

(13,675)

2,074

54

2,862

169

133

52,183

2

Balance as at
March 31, 2023––

Total equity
attributable
to equity
Effective
Other items
holders
portion ofof otherof thecash flow comprehensive
Company
hedges income / (loss)

Other comprehensive income–

SpecialEquityEconomic
instruments
Zone through other(SEZ) Re- comprehensive
investment
incomeReserve (1)

51

–

–

–

–

–

–

–

–
878

51

–

–

–

–

18

–

–

–

–

(13,675)

9,654

260

(5)

(519)

67,745* net of tax** Including tax on buyback of ₹2,166 crore and ₹1,893 crore for the years ended March 31, 2023 and March 31, 2022, respectively.
#

Impact on account of adoption of amendment to Ind AS 37, Provisions, Contingent Liabilities and Contingents Assets.

(1)

The Special Economic Zone (SEZ) 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.

(3)

Arising on transfer of the business of Brilliant Basics Limited to Infosys Limited.

The accompanying notes form an integral part of the Standalone financial statements.
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
Infosys Integrated Annual Report 2022-23

Sanjiv V. Pilgaonkar
Partner

D. Sundaram

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023

Nilanjan Roy

Chief Financial Officer

Salil Parekh

Chief Executive Officer
and Managing Director

Jayesh Sanghrajka

Executive Vice President and
Deputy Chief Financial Officer

Bobby Parikh
Director

A.G.S. Manikantha
Company Secretary

Standalone Financial Statements

228

Particulars

Statement of Cash Flows
Accounting policy
Cash flows are reported using the indirect method, whereby profit for the year 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 withinvesting 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

NoteYear ended March 31,
2023

2022

23,26821,235

2.1, 2.2.2 and 2.3

2,753

2,429

2.17

8,375

7,260

Cash flow from operating activities :Profit for the year
Adjustments to reconcile net profit to net cash provided by operating activities :Depreciation and amortization
Income tax expense
Impairment loss recognized / (reversed) under expected credit loss model

183

117

Finance cost

157

128

Interest and dividend income

2.19(3,028)(2,617)

Stock compensation expense

2.12

460

372

Other adjustments

155

72

Exchange differences on translation of assets and liabilities, net

(116)

87

(5,065)(5,725)(2,171)(1,125)

Changes in assets and liabilities
Trade receivables and unbilled revenue
Loans, other financial assets and other assets
Trade payables

2.14

(243)

1,112

2,248

5,487

Cash generated from operations

26,976

28,832

Income taxes paid

(7,807)(6,736)

Net cash generated by operating activities

19,16922,096

Expenditure on property, plant and equipment(2,130)(1,787)

Deposits placed with corporation

(634)

(745)

Other financial liabilities, other liabilities and provisions

Cash flow from investing activities :Redemption of deposits placed with corporation

482

607

Interest and dividend received

1,299

1,658

Dividend received from subsidiary

1,463

1,218

Loan given to subsidiaries

(427)

–

Loan repaid by subsidiaries

393

73

–

536

Proceeds from redemption of debentures
Investment in subsidiaries(1,530)

(127)

19

(109)

Escrow and other deposits pertaining to buyback

(483)

(420)

Redemption of Escrow and other deposits pertaining to buyback

483

420

Other receipts

61

47

Receipt / (payment) towards business transfer of entities under common control

Payments to acquire investments

Infosys Integrated Annual Report 2022-23

229

Standalone Financial Statements
Particulars

NoteYear ended March 31,
2023

2022

–

(5)

Liquid mutual fund units(62,952)(48,139)

Target maturity fund units

(400)

–

Preference and equity securities

Tax-free bonds and government bonds

(14)

–

Commercial papers(2,485)–

Certificates of deposit(8,909)(3,897)

Government securities(1,370)(3,450)Non-convertible debentures–(1,456)

Others

(4)

(5)

213

20

Proceeds on sale of investments
Tax-free bonds and government bonds
Preference and equity securities
Liquid mutual fund units–

964,16848,219395

1,939

Non-convertible debentures
Certificates of deposit

9,454

787

Commercial papers

2,098

–

Government securities

1,532

1,452

99

5

821

(3,150)

(694)

(598)

30

11

(11,499)(11,125)

44

134

OthersNet cash (used in) / generated from investing activities
Cash flow from financing activities :Payment of lease liabilities

2.3

Shares issued on exercise of employee stock options
Buyback of equity shares including transaction costs and tax on buyback
Other receipts
Other payments

(64)

–

Payment of dividends(13,674)(12,697)

Net cash used in financing activities(25,857)(24,275)(5,867)(5,329)Net increase / (decrease) in cash and cash equivalents
Effect of exchange differences on translation of foreign currency cash and cash
equivalents

131

(13)

Cash and cash equivalents at the beginning of the year

2.9

12,27017,612

Cash and cash equivalents at the end of the year

2.9

6,534

12,270

2.9

46

60

Supplementary information :Restricted cash balance

The accompanying notes form an integral part of the 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
Partner

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023
230

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary

Infosys Integrated Annual Report 2022-23

Overview and Notes to the 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 theirdigital transformation. Infosys' strategic objective is to build asustainable organization that remains relevant to the agenda ofclients, while creating growth opportunities for employees andgenerating profitable returns for investors. Infosys' strategy is tobe 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 anddomiciled 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 Standalone financial statements are approved for issue by theCompany's Board of Directors on April 13, 2023.

1.2 Basis of preparation of financial statements
These Standalone financial statements are prepared in accordancewith Indian Accounting Standard (Ind AS), under the historicalcost convention on accrual basis, except for certain financial
instruments which are measured at fair values, the provisionsof the Companies Act, 2013 (''the Act'') and guidelines issued
by the Securities and Exchange Board of India (SEBI). The Ind AS
are prescribed under Section 133 of the Act read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 andrelevant amendment rules issued thereafter.
Accounting policies have been consistently applied, except
where a newly-issued accounting standard is initially adopted ora revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
As the year-end 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-end figures
reported in this statement.

1.3 Use of estimates and judgments
The preparation of the Standalone financial statements inconformity with Ind AS requires the management to makeestimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, thedisclosures of contingent assets and liabilities at the date of
the Standalone financial statements and reported amounts ofrevenues and expenses during the period. The application of
accounting policies that require critical accounting estimates,
which involve complex and subjective judgments and the use ofassumptions in these financial statements, have been disclosed

Infosys Integrated Annual Report 2022-23

in Note 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 theestimates. Changes in estimates and judgements are reflected in
the financial statements in the period in which changes are madeand, if material, their effects are disclosed in the notes to theStandalone financial statements.

1.4 Critical accounting estimates and judgments
a. Revenue recognition
The Company’s contracts with customers include promises totransfer multiple products and services to a customer. Revenues
from customer contracts are considered for recognition andmeasurement when the contract has been approved, in writing,by the parties to the contract, the parties to contract arecommitted to perform their respective obligations under thecontract, 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 fromsuch deliverables, and allocation of transaction price to these
distinct performance obligations involves significant judgment.
Fixed-price maintenance revenue is recognized ratably on astraight-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 thepattern of benefits from the services rendered to the customer
and the Company's costs to fulfil the contract is not even throughthe period of the contract because the services are generally
discrete in nature and not repetitive. The use of method torecognize the maintenance revenues requires judgment
and is based on the promises in the contract and natureof the deliverables.
The Company uses the percentage-of-completion methodin accounting for other fixed-price contracts. Use of thepercentage-of-completion method requires the Company todetermine the actual efforts or costs expended to date as aproportion 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 theperiod of the contract to reflect any changes based on the latest
available information.
Contracts with customers include 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 first231

Standalone Financial Statements
evaluates whether it controls the good or service before it istransferred to the customer. The Company considers whether
it has the primary obligation to fulfil the contract, inventoryrisk, pricing discretion and other factors to determine whether
it controls the goods or service and therefore, is acting as aprincipal or an agent.
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 tocomplete the contract.
b. Income taxes
The Company's two major tax jurisdictions are India and theUnited States, though the Company also files tax returns in otheroverseas jurisdictions.
Significant judgments are involved in determining theprovision 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 thedeferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon thegeneration 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 ofhistorical 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 Company willrealize the benefits of those deductible differences. The amountof the deferred income tax assets considered realizable,
however, could be reduced in the near term if estimates of futuretaxable income during the carry forward period are reduced(Refer to Note 2.17).
c. Property, plant and equipment
Property, plant and equipment represent a significant proportionof 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 valuesof the 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 anticipationof future events, which may impact their life, such as changes intechnology (Refer to Note 2.1).

rather than their significant accounting policies. The effective
date for adoption of this amendment is annual periods beginningon or after April 1, 2023. The Company has evaluated theamendment and the impact of the amendment is insignificant in
the standalone financial statements.
Ind AS 8, Accounting Policies, Changes in Accounting Estimatesand Errors – This amendment has introduced a definition of‘accounting estimates’ and included amendments to Ind AS 8
to help entities distinguish changes in accounting policies fromchanges in accounting estimates. The effective date for adoptionof this amendment is annual periods beginning on or after
April 1, 2023. The Company has evaluated the amendment andthere is no impact on its Standalone financial statements.
Ind AS 12, Income Taxes – This amendment has narrowed thescope 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 thisamendment is annual periods beginning on or after April 1, 2023.
The Company has evaluated the amendment and there is no
impact on its Standalone financial statements.

2. Notes to the Standalone financial statements
2.1 Property, plant and equipment
Accounting policy
Property, plant and equipment are stated at cost, lessaccumulated 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 theManagement. The charge in respect of periodic depreciation isderived at after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life.
The Company depreciates property, plant and equipment overtheir estimated useful lives using the straight-line method.
The estimated useful lives of assets are as follows :Buildings (1)Plant and machinery

5 years

Computer equipment (1)3-5 years

Furniture and fixtures (1)5 years

Vehicles (1)5 years

Office equipment

Leasehold improvements

Ind AS 1, Presentation of Financial Statements – This amendment
requires the entities to disclose their material accounting policies

232

5 years

Lower of useful life of the asset
or lease term

(1)

Based on technical evaluation, the Management believes that theuseful lives, as given above, best represent the period over which theManagement expects to use these assets. Hence, the useful lives forthese 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 25 years.

1.5 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) notifies new standards
or amendments to the existing standards under Companies(Indian Accounting Standards) Rules as issued from time totime. On March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below :22-25 years(1)(2)

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

Infosys Integrated Annual Report 2022-23

Advances paid towards the acquisition of property, plant andequipment outstanding at each Balance Sheet date is classified
as capital advances under other non-current assets. The costof 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 associatedwith these will flow to the Company and the cost of the item
can be measured reliably. The cost and related accumulated
depreciation are eliminated from the financial statements uponsale or retirement of the asset.
Impairment
Property, plant and equipment are evaluated for recoverability
whenever events or changes in circumstances indicate that theircarrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher ofthe fair value less cost to sell and the value-in-use) is determinedon an individual asset basis unless the asset does not generatecash flows that are largely independent of those from otherassets. 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 tobe recognized in the Statement of Profit and Loss is measured by
the amount by which the carrying value of the assets exceeds theestimated recoverable amount of the asset. An impairment loss
is reversed in the Statement of Profit and Loss if there has beena 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 notexceed 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 year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars

Gross carrying
value as at
April 1, 2022
Additions
Deletions*

Gross carrying
value as at
March 31, 2023

Land – Buildings
Freehold(1)(2)

Plant and
OfficeComputermachinery (2) equipment (2) equipment (2)Furniture
Leasehold Vehicles
and improvements
fixtures (2)

Total

1,429

10,115

3,054

1,250

7,239

2,070

817

44

26,018

2

330

264

106

1,267

341

165

2

2,477

(2)

–

(174)

(42)

(1,271)

(282)

(14)

(1)

(1,786)

26,7091,429

10,445

3,144

1,314

7,235

2,129

968

45

Accumulated
depreciation as at
April 1, 2022–

(3,834)(2,494)(993)(5,163)(1,614)(499)(37) (14,634)

Depreciation

–

(389)

(238)

(109)

(1,080)

(216)

(157)

(4)

(2,193)

Accumulated
depreciation ondeletions *

–

–

174

42

1,266

281

10

1

1,774

Accumulated
depreciation as at
March 31, 2023–

(4,223)(2,558)(1,060)(4,977)(1,549)(646)

Carrying value as
at April 1, 2022

1,429

6,281

560

257

2,076

456

318

7

11,384

Carrying value as
at March 31, 2023

1,429

6,222

586

254

2,258

580

322

5

11,656(40) (15,053)* During the year ended March 31, 2023, certain assets which were not in use having gross book value of ₹1,598 crore (net book value : nil), were retired.

Infosys Integrated Annual Report 2022-23

233

Standalone Financial Statements
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars

Gross carrying
value as at
April 1, 2021

Land – Buildings (1)(2)
Plant and
OfficeComputer Furniture
Leasehold Vehicles
Freeholdmachinery (2) equipment (2) equipment (2)and improvements
fixtures (2)

1,397

9,546

Additions32

569

Deletions *––Gross carrying
value as at
March 31, 2022

3,141

1,195

6,530

1,952

244

62

1,281

(331)

(7)

(572)

Total

788

44

24,593

130

63

–

2,381

(12)

(34)

–

(956)

26,018

1,429

10,115

3,054

1,250

7,239

2,070

817

44

Accumulated
depreciation as at
April 1, 2021–

(3,460)(2,600)(891)(4,870)(1,434)(376)(32) (13,663)

Depreciation

–

(374)

(224)

(108)

(864)

(191)

(148)

(5)

(1,914)

Accumulated
depreciation ondeletions *

–

–

330

6

571

11

25

–

943

Accumulated
depreciation as at
March 31, 2022–

(3,834)(2,494)(993)(5,163)(1,614)(499)(37) (14,634)

Carrying value as at
April 1, 2021

1,397

6,086

541

304

1,660

518

412

12

10,930Carrying value as at
March 31, 2022

1,429

6,281

560

257

2,076

456

318

7

11,384* During the year ended March 31, 2022, certain assets which were not in use having gross book value of ₹291 crore (net book value : nil) respectively, wereretired.
(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 Statement of Profit and Loss.

Particulars

Repairs and maintenance costs are recognized in the Statementof Profit and Loss when incurred.

Furniture and fixtures

Tangible assets provided on operating lease to subsidiaries as at
March 31, 2023 and March 31, 2022 are as follows :Computer equipment(In ₹ crore)

Particulars
Land
Buildings
Plant and machinery

234

Cost Accumulated
depreciation

Cost Accumulated
depreciation

Office equipment

Net book
value

53

–

53

34

–

34

333

132

201

186

104

82

28

28

–

30

30

–

Net book
value

19

18

1

23

23

–

–

–

–

3

3

–

16

16

–

16

16

–
(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Aggregate depreciation charged
on above assets

13

6

Rental income from subsidiaries

53

52

Infosys Integrated Annual Report 2022-23

2.2 Goodwill and other intangible assets

The allocation of goodwill to operating segments as at
March 31, 2023 and March 31, 2022 is as follows :2.2.1 Goodwill
The summary of changes in the carrying amount of
goodwill is as follows :(In ₹ crore)

Segment

As at March 31,(In ₹ crore)

Particulars
Carrying value at the beginning
Goodwill on business transfer (Refer
to Note 2.5.1)
Carrying value at the end

As at March 31,
2023

2022

211

167

–
211

44
211

2023

2022

Financial services

64

64

Retail34

34

Communication

28

28

Energy, Utilities, Resources andServices

27

27

Manufacturing

21

21

174

174

37
211

37
211

Operating segments without
significant goodwill
Total

2.2.2 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 othereconomic 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 andcommercial feasibility of the project is demonstrated, the future economic benefits are probable, the Company has an intention andability to complete and use or sell the software, and the costs can be measured reliably. The costs which can be capitalized include thecost of material, direct labor, and overhead costs that are directly attributable to prepare the asset for its intended use.
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars
Gross carrying value as at April 1, 2022
Additions
DeletionsCustomerrelated

Softwarerelated

Trade namerelated

Others

Total

113

54

26

26

219

–

–

–

–

–

–

–

–

–

–

Gross carrying value as at March 31, 2023

113

54

26

26

219

Accumulated amortization as at April 1, 2022

(104)

(31)

(26)

(26)

(187)

Amortization expense

(9)

(20)

–

–

(29)

Accumulated amortization on deletions

–

–

–

–

–

Accumulated amortization as at March 31, 2023

(113)

(51)

(26)

(26)

(216)

Carrying value as at March 31, 2023

–

3

–

–

3

Carrying value as at April 1, 2022

9

23

–

–

32

Estimated useful life (in years)

7

2

5

5

Estimated remaining useful life (in years)

–

–

–

–

Infosys Integrated Annual Report 2022-23

235

Standalone Financial Statements
The changes in the carrying value of acquired intangible assets for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars
Gross carrying value as at April 1, 2021
Additions
DeletionsCustomerrelated

Softwarerelated

Trade namerelated

Others

Total

113

54

26

26

219

–

–

–

–

–

–

–

–

–

–

Gross carrying value as at March 31, 2022

113

54

26

26

219

Accumulated amortization as at April 1, 2021

(88)

(12)

(26)

(26)

(152)

Amortization expense

(16)

(19)

–

–

(35)

–

–

–

–

–

Accumulated amortization on deletions
Accumulated amortization as at March 31, 2022

(104)

(31)

(26)

(26)

(187)

Carrying value as at March 31, 2022

9

23

–

–

32

Carrying value as at April 1, 2021

25

42

–

–

67

Estimated useful life (in years)

7

2

5

5

Estimated remaining useful life (in years)

1

1

–

–

The amortization expense has been included under depreciation and amortization expense in the Standalone Statement of Profit and Loss.
Research and Development expenditure
Research and Development expense recognized in net
profit in the Statement of Profit and Loss for the years
ended March 31, 2023 and March 31, 2022 is ₹639 crore and₹529 crore, respectively.

2.3 Leases
Accounting policy
The Company as a lessee

assesses whether it is reasonably certain that any options toextend or terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over thelease term, costs relating to the termination of the lease andthe importance of the underlying asset to Infosys’s operations
taking into account the location of the underlying asset andthe availability of suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term reflects thecurrent economic circumstances.

The Company’s lease asset classes consist of leases for land,buildings and computers. The Company assesses whether acontract contains a lease, at inception of a contract. A contractis, 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 rightto 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.

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.

At the date of commencement of the lease, the Company
recognizes a right-of-use asset (“ROU”) and a corresponding leaseliability 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.

ROU assets are depreciated from the commencement date on astraight-line basis over the shorter of the lease term and usefullife of the underlying asset. Right-of-use-assets are evaluatedfor recoverability whenever events or changes in circumstancesindicate 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) isdetermined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those fromother assets. In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset belongs.

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 isreasonably certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis and thereby

236

The ROU 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.

Infosys Integrated Annual Report 2022-23

The lease liability is initially measured at amortized cost at thepresent 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 towhether 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 financeor 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 areclassified 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 byreference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on astraight-line basis over the term of the relevant lease.

The changes in the carrying value of right-to-use assets for the year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars
Balance as at April 1, 2022
Additions*

Deletions
Depreciation
Balance as at March 31, 2023

Category of ROU asset

Total

Land

Buildings

Computers

552

2,621

138

–

510

371

881

–

(21)

(61)

(82)

(4)
548

(441)
2,669

(104)
344

(549)
3,561

3,311

* Net of adjustments on account of modifications and lease incentives

The changes in the carrying value of right-to-use assets for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars
Balance as at April 1, 2021
Additions *Category of ROU asset

Total

Land

Buildings

Computers

556

2,766

113

3,435

–

306

68

374

Deletions

–

(18)

–

(18)

Depreciation

(4)

(433)

(43)

(480)

Balance as at March 31, 2022

552

2,621

138

3,311

* Net of adjustments on account of modifications and lease incentives

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in theStatement of Profit and Loss.

Infosys Integrated Annual Report 2022-23

237

Standalone Financial Statements
The break-up of current and non-current lease liabilities as at
March 31, 2023 and March 31, 2022 is as follows :The movement in the net investment in sublease in ROU asset during
the years ended March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars
Current lease liabilities
Non-current lease liabilities
Total

As at March 31,

Particulars

2023

2022

713

558

3,553
4,266

3,228
3,786

The movement in lease liabilities during the years ended
March 31, 2023 and March 31, 2022 is as follows :Particulars

As at March 31,
2023

2022

Balance at the beginning

3,786

3,854

Additions

883

394

Finance cost accrued during theperiod151

126

Deletions

(26)

(18)

Payment of lease liabilities

(706)

(628)

Balance at the end

178
4,266

As at March 31,
2023

2022

Balance at the beginning

365

385

Interest income accrued during theperiod13

13

Lease receipts

(61)

(47)

Translation difference

29
346

14
365

Balance at the end(In ₹ crore)

Translation difference(In ₹ crore)

58
3,786

The details regarding the contractual maturities of net
investment in sublease of ROU asset as at March 31, 2023 andMarch 31, 2022 on an undiscounted basis are as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Less than one year

60

54

One to five years

257

230

More than five years

69
386

126
410

Total

The details regarding the contractual maturities of lease liabilities
as at March 31, 2023 and March 31, 2022 on an undiscounted
basis are as follows :Leases not yet commenced to which the Company is committedis ₹135 crore for a lease term ranging from four to ten years.

(In ₹ crore)(In ₹ crore)

Particulars

As at March 31,
2023

2.4 Capital work-in-progress
Particulars

As at March 31,

2022

Less than one year

821

637

Capital work-in-progress

One to five years

2,547

2,100

Total capital work-in-progress

More than five years

1,546

1,519

Total

4,914

4,256

The Company does not face a significant liquidity risk
with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as
and when they fall due.
Rental expense recorded for short-term leases was ₹22
crore and ₹12 crore for the years ended March 31, 2023 andMarch 31, 2022, respectively.

2022

275
275

411
411

The capital work-in-progress ageing schedule for the years
ended March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

Projects inprogress
Total capital
work-in-progress

238

2023

Amount in CWIP for a period of

Total

Less
than 1
year

1-2
years

2-3
years

More
than 3
years

222

21

12

20

275

267

48

51

45

411

222

21

12

20

275

267

48

51

45

411

Infosys Integrated Annual Report 2022-23

For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, the project-wise detailsof when the project is expected to be completed as of March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

To be completed in

Total

Less than 1year

1-2 years

2-3 years More than 3
years

114

–

–

–

114

–

27

–

–

27

20

–

–

–

20

–

–

–

–

–

Projects in progress
KL-SP-SDB1
BN-SP-MET
NG-SZ-SDB1
BN-SP-RETRO
BH-SZ-MLP
Total capital work-in-progress

–

–

–

–

–

89

–

–

–

89

–

–

–

–

–

30

–

–

–

30

–

–

–

–

–

116

–

–

–

116

134

–

–

–

134

235

27

–

–

262

2.5 Investments(In ₹ crore)

Particulars

As at March 31,
2023

2022

Equity instruments of subsidiaries

9,078

9,061

Redeemable preference shares of subsidiary

2,831

1,318

Preference securities and equity instruments

196

194

–

7

402

–

Non-current investments

Compulsorily convertible debentures
Target maturity fund units
OthersTax-free bonds
Government bonds

82

76

1,742

1,901

14

–

Non-convertible debentures

2,490

3,459

Government securities

6,851

6,853

Total non-current investments

23,68622,869260

1,337

Current investments
Liquid mutual fund units
Commercial papers

420–

Certificates of deposit

2,765

3,141

Tax-free bonds

150

200

Government bonds–

13

Government securities

5362

Non-convertible debentures
Total current investments
Total carrying value

Infosys Integrated Annual Report 2022-23

876

414

4,476
28,162

5,467
28,336239

Standalone Financial Statements(In ₹ crore, except as otherwise stated)

Particulars

As at March 31,
2023

2022

662

662

Infosys Technologies (China) Co. Limited

369

369

Infosys Technologies, S. de R.L. de C.V., Mexico

65

65

76

76

1,010

1,010

99

99

1,323

1,323

1

1

1,312

1,312

Infosys Nova Holdings LLC #

2,637

2,637

Infosys Singapore Pte. Ltd

10

10

59

59

2

2

59

59

582

582

7

7

380

380

17

17

–

–

337

337

Non-current investments
Unquoted
Investment carried at cost
Investments in equity instruments of subsidiaries
Infosys BPM Limited
33,828 (33,828) equity shares of ₹10,000 each, fully paid up

17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up
Infosys Technologies (Sweden) AB
1,000 (1,000) equity shares of SEK 100 par value, fully paid
Infosys Technologies (Shanghai) Company Limited
Infosys Public Services, Inc.
3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid
Infosys Consulting Holding AG
23,350 (23,350) - Class A shares of CHF 1,000 each and26,460 (26,460) - Class B Shares of CHF 100 each, fully paid up
Infosys Americas Inc.
10,000 (10,000) shares of USD 10 per share, fully paid up
EdgeVerve Systems Limited
1,31,18,40,000 (1,31,18,40,000) equity shares of ₹10 each, fully paid up

1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid
Brilliant Basics Holding Limited
1,346 (1,346) shares of GBP 0.005 each, fully paid up
Infosys Arabia Limited
70 (70) shares
Skava Systems Private Limited
25,000 (25,000) shares of ₹10 each, fully paid up
Panaya Inc.
2 (2) shares of USD 0.01 per share, fully paid up
Infosys Chile SpA
100 (100) shares
WongDoody, Inc.
100 (100) shares
Infosys Luxembourg S.ã r.l.
20,000 (20,000) shares
Infosys Austria GmBH
80,000 (80,000) shares of EUR 1 par value, fully paid up
Infosys Consulting Brazil
27,50,71,070 (27,50,71,070) shares of BRL 1 per share, fully paid up

240

Infosys Integrated Annual Report 2022-23

Particulars

As at March 31,
2023

2022

34

34

2

2

2

2

1

1

Infosys Automotive and Mobility GmbH15

15

Infosys Germany GmbH

–

–

7

–

2

–

8

–

2,831

1,318

11,90910,379–

7

Infosys Consulting S.R.L. (Romania)
99,183 (99,183) shares of RON 100 per share, fully paid up
Infosys Limited Bulgaria EOOD
4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up
Infosys Germany Holdings GmbH
25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Green Forum
10,00,000 (10,00,000) shares ₹10 per share, fully paid up

25,000 (25,000) shares EUR 1 per share, fully paid up
Infosys Turkey Bilgi Teknolojileri Limited Sirketi
1,30,842 (1) share Turkish Liras 100 (10,000) per share, fully paid up
Infosys Consulting S.R.L. (Argentina)
2,94,500 (Nil) shares AR$ 100 per share, fully paid up
Infosys Business Solutions LLC
10,000 (Nil) shares USD 100 per share, fully paid up
Investments in redeemable preference shaares of subsidiary
Infosys Singapore Pte. Ltd
45,62,00,000 (24,92,00,000) shares of SGD 1 per share, fully paid up
40,000,000 (Nil) shares of USD 1 per share, fully paid up
Investments carried at fair value through profit or loss (Refer to Note 2.5.2)
Compulsorily convertible debentures
Target maturity fund units

402–

Others (1)

82

76

484

83

193

192

Investments carried at fair value through other comprehensive income (Refer to Note 2.5.2)
Preference securities
Equity instruments

3

2

196

194

1,742

1,901

QuotedInvestments carried at amortized cost
Tax-free bonds
Government bonds

14

–

1,756

1,901

Non-convertible debentures

2,490

3,459

Government securities

6,851

6,853

Investments carried at fair value through other comprehensive income

Total non-current investments

Infosys Integrated Annual Report 2022-23

9,341

10,312

23,68622,869241

Standalone Financial Statements
Particulars

As at March 31,
2023

2022

260

1,337

260

1,337

420

–

Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units
Investments carried at fair value through other comprehensive income
Commercial papers
Certificates of deposit

2,765

3,141

3,185

3,141

150

200

QuotedInvestments carried at amortized cost
Tax-free bonds
Government bonds

–

13

150

213

5

362

876

414

Investments carried at fair value through other comprehensive income
Government securities
Non-convertible debentures

881

776

Total current investments

4,476

5,467

Total investments

28,16228,336Aggregate amount of quoted investments

12,128

13,202Market value of quoted investments (including interest accrued), current

1,050

1,003

Market value of quoted investments (including interest accrued), non-current

11,336

12,552Aggregate amount of unquoted investments

16,034

15,134Aggregate 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

11,90910,379Investments carried at amortized cost

1,906

2,114

Investments carried at fair value through other comprehensive income

13,603

14,423

744

1,420

#

Investments carried at fair value through profit or loss
(1)

Uncalled capital commitments outstanding as of March 31, 2023 and March 31, 2022 was ₹8 crore and ₹11 crore, respectively.

Refer to Note 2.11 for accounting policies on financial instruments.
The details of amounts recorded in other comprehensive income are as follows :(In ₹ crore)

Particulars

Year ended
March 31, 2023

March 31, 2022

Gross

Tax

Net

Gross

Tax

Net

Non-convertible debentures

(92)

(1)

(93)

(7)

1

(6)

Government securities

(150)

8

(142)

(56)

22

(34)

Net gain / (loss) on

Certificates of deposit

(1)

–

(1)

2

(1)

1

Equity and preference securities

(7)

1

(6)

119

(22)

97

242

Infosys Integrated Annual Report 2022-23

Method of fair valuation :(In ₹ crore)

Class of investment

MethodFair value as at March 31,

Liquid mutual fund units

Quoted priceTarget maturity fund units

Quoted price402–

Tax-free bonds and government bonds

Quoted price and market observable inputs

2,134

2,438

Non-convertible debentures

Quoted price and market observable inputs

3,366

3,873

Government securities

Quoted price and market observable inputs

6,856

7,215

Commercial papers

Market observable inputs

420–

Certificates of deposit

Market observable inputs

2,765

3,141

196

194

Unquoted equity and preference securities – carried at Discounted cash flows method, Market multiples
fair value through other comprehensive income
method, Option pricing model

2023

2022

260

1,337

Unquoted compulsorily convertible debentures –carried at fair value through profit or loss

Discounted cash flows method–

7

OthersDiscounted cash flows method, Market multiples
method, Option pricing model

82

76

16,481

18,281

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

2.5.1 Business transfer
During the year ending March 31, 2023, the Company enteredinto a business transfer agreement to transfer the German branch
to its wholly-owned subsidiary, Infosys BPM Limited effective
February 1, 2023. The business transfer resulted in a transferof net assets amounting to ₹1 crore and a business transfer
reserve of ₹18 crore.

The details out the assets and liabilities taken over upon business
transfer are as follows :(In ₹ crore)

Particulars

Total

Goodwill

44

Net assets / (liabilities), others

3

Brilliant Basics Limited

Total

47

On November 1, 2021, the Company entered into a business
transfer agreement to transfer the business of Brilliant
Basics Limited to the Company for a consideration of₹109 crore resulting in recognition of a business transfer
reserve of ₹62 crore.

Less : Consideration

109

Business transfer reserve(62)

2.5.2 Details of investments
The details of investments in preference, equity and other instruments at March 31, 2023 and March 31, 2022 are as follows :(In ₹ crore, except as otherwise stated)

Particulars

As at March 31,
2023

2022

–

–

53

150

26

22

Preference securities
Airviz Inc.
2,89,695 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each
Whoop Inc
1,10,59,340 (1,10,59,340) Series B Preferred Stock, fully paid up, par value USD 0.0001 each
Nivetti Systems Private Limited
2,28,501 (2,28,501) Preferred Stock, fully paid up, par value ₹1 each

Infosys Integrated Annual Report 2022-23

243

Standalone Financial Statements
Particulars

As at March 31,

Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)

2023

2022

114

20

–

–

2

2

1

–

–

7

82
278

76
277

5,402 (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
1,787 (Nil) Series B compulsorily convertible cumulative Preference shares of ₹10 each, fully paid up
Equity instrument
Merasport Technologies Private Limited
2,420 (2,420) equity shares at ₹8,052 each, fully paid up, par value ₹10 each
Global Innovation and Technology Alliance
15,000 (15,000) equity shares at ₹1,000 each, fully paid up, par value ₹1,000 each
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
22,600 (100) equity shares at ₹10, fully paid up
Compulsorily convertible debentures
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
Nil (3,886) compulsorily convertible debentures, fully paid up, par value ₹19,300 each
OthersStellaris Venture Partners India
Total

2.6 Loans

2.7 Other financial assets(In ₹ crore)

Particulars

Particulars

As at March 31,
2023

2023

2022

Security deposits (1)4343

Net investment in sublease of rightof use asset (1)

298

320

Rental deposits (1)

183

134

686

215

131

15

1,341

727

Non-current

Loans considered good – Unsecured
Other loans
39

34

39

34

Loans credit impaired – Unsecured

Unbilled revenues(1)(5)#

Others (1)Other loans
Loans to employees––

Less : Allowance for credit impairment

–

–

–

–

39

34

43

–

Total non-current loans

As at March 31,2022

Non-current

Loans to employees(In ₹ crore)

Total non-current other financial
assetsCurrent
Loans considered good – Unsecured
Loans to subsidiaries
Other loans
Loans to employees
Total current loans
Total loans

244

248

219

291
330

219
253

Infosys Integrated Annual Report 2022-23

Particulars

2.8 Trade receivables

As at March 31,
2023

Particulars

Current
Security deposits (1)Rental deposits (1)

1

1

5

36

(1)*

2,116

1,965

(1)(5)#

Restricted deposits
Unbilled revenues(In ₹ crore)

2022

5,166

3,543

Interest accrued but not due (1)

441

323

Foreign currency forward andoptions contracts (2)(3)

79

131

Net investment in sublease ofright-of-use asset (1)

48

45

1,232

536

Total current other financial assets

9,088

6,580

Total other financial assets

10,4297,307

10,3507,176

Others (1)(4)(1)

Financial assets carried at amortized
cost

(2)

Financial assets carried at fair value
through other comprehensive income

32

(3)

Financial assets carried at fair value
through profit or loss

47

111

(4)

Includes dues from subsidiaries

1,051

220

(5)

Includes dues from subsidiaries

290

419

As at March 31,
2023

2022

Trade receivable consideredgood – Unsecured (1)21,202

19,454

Less : Allowance for expectedcredit loss

429

488

Trade receivable consideredgood – Unsecured

20,773

18,966

Trade receivable – credit
impaired – Unsecured

106

85

Less : Allowance for credit
impairment

106

85

Trade receivable – credit
impaired – Unsecured––

20,773

18,966

611

268

–

–

Current

Total trade receivables (2)20(1)

Includes dues from subsidiaries(2)

Includes dues from companies where
directors are interested* 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 andis due only after a passage of time.

The trade receivables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :Particulars

Not due

Outstanding for following periods from due date ofpayment
Less than
6 months

Undisputed trade receivables – considered good
Undisputed trade receivables – credit impaired

Disputed trade receivables – considered good
Disputed trade receivables – credit impaired

Less : Allowance for credit loss(In ₹ crore)

6 months
to 1 year

1-2 years

2-3 years

Total

More than
3 years

15,579

5,542

4

66

4

7

21,202

14,555

4,703

133

10

30

23

19,454

9

6

2

4

49

34

104

–

1

3

43

31

3

81

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

2

–

2

–

–

–

4

–

–

4

15,588

5,548

6

70

55

41

21,30814,555

4,704

136

57

61

26

19,539535
573

Total trade receivables

20,773
18,966

Infosys Integrated Annual Report 2022-23

245

Standalone Financial Statements
2.9 Cash and cash equivalents(In ₹ crore)

Particulars

As at March 31,

Particulars

Cash-on-handPrepaid expenses (1)

1,705

1,174

Unbilled revenues

6,365

5,365

400

350

4,864

9,375

Payment to vendors for supply of
goods

–

–
2,895
12,270

Balances with banks in unpaid dividend
accounts

37

36

Deposit with more than 12 months
maturity

700

1,471

Balances with banks held as margin
money deposits against guarantees–

1

Others(2)

Deferred contract cost
Cost of obtaining a contract (3)Cost of fulfillment

Cash and cash equivalents as at March 31, 2023 andMarch 31, 2022 include restricted cash and bank balances of ₹46
crore and ₹60 crore, respectively.
The deposits maintained by the Company with banks andfinancial institutions comprise of time deposits, which can bewithdrawn by the Company at any point without prior notice or
penalty on the principal.

2.10 Other assets(In ₹ crore)

As at March 31,
2023

2022

141

87

Prepaid expenses

63

82

Defined benefit plan assets

9

10

Cost of obtaining a contract (3)

139

151

Cost of fulfillment

601

273

Non-current
Capital advances

183

Advances other than capital advances

1,670

Particulars

171

2022

6,534

Deposits with financial institutions

2022

2023

OthersTotal cash and cash equivalents

2023
Current

Balances with banks
In current and deposit accounts

As at March 31,

109

40

2,047

1,589

123

234

Total current other assets

10,9208,935

Total other assets

12,70810,351

198

204

Withholding taxes and others
Other receivables (1)(1)

Includes dues from subsidiaries(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 acustomer as a part of transformation project which is not consideredas distinct goods or services, and the control related to the assets is nottransferred to the Company in accordance with Ind AS 115, Revenue fromContract with Customers. Accordingly, the same has been considered
as a reduction to the total contract value and accounted as Deferred
contract cost. The Company has entered into a financing arrangementwith a third party for these assets which has been considered as
financial liability. (Refer to Note 2.13)

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

Advances other than capital advances
OthersDeferred contract cost

Unbilled revenues

167

156

Withholding taxes and others

668

657

Total non-current other assets

1,788

1,416

246

(2)

Infosys Integrated Annual Report 2022-23

2.11 Financial instruments
Accounting policy
2.11.1 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 recognizedat 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 issueof financial assets and financial liabilities, which are not at fairvalue through profit or loss, are added to the fair value on initialrecognition. Regular way purchase and sale of financial assets areaccounted for at trade date.
2.11.2 Subsequent measurementa. 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 holdthe asset in order to collect contractual cash flows and thecontractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.
(ii) Financial assets carried at fair value through othercomprehensive income (FVOCI)A financial asset is subsequently measured at fair value throughother 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 thefinancial asset give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amountoutstanding. 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 othercomprehensive income based on its business model.
(iii) Financial assets carried at fair value through profit or loss
A financial asset, which is not categorized in any of the above
categories, is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized costusing the effective interest method, except for contingent
consideration 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 theBalance Sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.
(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

Infosys Integrated Annual Report 2022-23

risk of changes in exchange rates on foreign currency exposures.
The counterparty for such 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 Company believes that these derivatives constitutehedges 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, oris so designated but is ineffective as per Ind AS 109, iscategorized as a financial asset or financial liability, at fair value
through profit or loss.
Derivatives not designated as hedges are recognized initiallyat fair value and attributable transaction costs are recognizedin 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 inthis 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
forecasted cash transactions.
When a derivative is designated as a cash flow hedge instrument,
the effective portion of changes in the fair value of the derivativeis recognized in other comprehensive income and accumulated
in the cash flow hedge reserve. Any ineffective portion ofchanges 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 thehedging 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 reserveis transferred to the net profit in the Statement of Profit and Lossupon the occurrence of the related forecasted transaction. If theforecasted transaction is no longer expected to occur, then theamount accumulated in cash flow hedge reserve is reclassified to
net profit in the Statement of Profit and Loss.
2.11.3 Derecognition of financial instruments
The Company derecognizes a financial asset when thecontractual 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 apart of a financial liability) is derecognized from the Company's
Balance Sheet when the obligation specified in the contract isdischarged or cancelled or expires.

247

Standalone Financial Statements
2.11.4 Fair value of financial instruments

2.11.5 Impairment

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 fairvalue include discounted cash flow analysis, option pricing
model, market multiples, available quoted market prices anddealer quotes. All methods of assessing fair value result ingeneral approximation of value, and such value may neveractually be realized.

The Company recognizes loss allowances using the expectedcredit 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 increasein credit risk from initial recognition, in which case those aremeasured at lifetime ECL.

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

The Company determines the allowance for credit losses basedon historical loss experience adjusted to reflect current andestimated future economic conditions. The Company considers
current and anticipated future economic conditions relating
to industries the Company deals with and the countries where
it operates.The amount of ECLs (or reversal) that is required toadjust the loss allowance at the reporting date to the amountthat is required to be recorded is recognized as an impairment
loss or gain in Statement of Profit and Loss.

Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2023 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

Designatedupon initialrecognition

Mandatory

Equityinstruments
designatedupon initialrecognition

Mandatory

6,534

–

–

–

–

6,534

6,534

–

–

82

196

–

278

278

1,906

–

–

–

–

1,906

2,134 (1)Liquid mutual fund units

–

–

260

–

–

260

260

Target maturity fund units

–

–

402

–

–

402

402

Commercial papers

–

–

–

–

420

420

420

Certificates of deposit

–

–

–

–

2,765

2,765

2,765

Non-convertible debentures

–

–

–

–

3,366

3,366

3,366

Government securities

–

–

–

–

6,856

6,856

6,856

20,773––––

20,773

20,773

Assets :Cash and cash equivalents(Refer to Note 2.9)
Investments (Refer to Note 2.5)
Preference securities, equity
instruments and others
Tax-free bonds and government bonds

Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)

330

–

–

–

–

330

330

Other financial assets (Refer to Note 2.7) (3)10,350

–

47

–

32

10,42910,345 (2)Total

39,893

–

791

196

13,43954,31954,463

248

Infosys Integrated Annual Report 2022-23

Particulars

Amortized
cost

Financial assets /liabilities at fair value
through profit or loss

Financial assets /liabilities at fair value
through OCI

Designatedupon initialrecognition

Mandatory

Equityinstruments
designatedupon initialrecognition

Mandatory

Total
carrying
value

Total fairvalue

Liabilities :Trade payables (Refer to Note 2.14)

2,426

–

–

–

–

2,426

2,426

Lease liabilities (Refer to Note 2.3)

4,266

–

–

–

–

4,266

4,266

11,98918,681

–
–

42
42

–
–

14
14

12,04518,737

12,04518,737

Other financial liabilities (Refer to Note 2.13)
Total
(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 ₹84 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, 2022 were 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

Designatedupon initialrecognition

Mandatory

Equity Mandatory
instruments
designatedupon initialrecognition

12,270––––12,27012,270

–

–

76

194

–

270

270

Assets :Cash and cash equivalents (Refer to Note 2.9)
Investments (Refer to Note 2.5)
Preference securities, equity
instruments and others
Compulsorily convertible debentures

–

–

7

–

–

7

7

2,114

–

–

–

–

2,114

2,438 (1)Liquid mutual fund units

–

–

1,337

–

–

1,337

1,337

Certificates of deposit

–

–

–

–

3,141

3,141

3,141

Non-convertible debentures

–

–

–

–

3,873

3,873

3,873

Government securities

–

–

–

–

7,215

7,215

7,215

18,966––––

18,966

18,966Loans (Refer to Note 2.6)

253

–

–

–

–

253

253

Other financial assets (Refer to Note 2.7) (3)

7,176

–

111

–

20

7,307

7,216 (2)40,779

–

1,531

194

14,24956,75356,986

Trade payables (Refer to Note 2.14)

2,669

–

–

–

–

2,669

2,669

Lease Liabilities (Refer to Note 2.3)

3,786

–

–

–

–

3,786

3,786

10,084
16,539

–
–

8
8

–
–

3
3

10,095
16,55010,095
16,550Tax-free bonds and government bonds

Trade receivables (Refer to Note 2.8)

Total
Liabilities :Other financial liabilities (Refer to Note 2.13)
Total
(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 ₹91 crore(3)

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

Infosys Integrated Annual Report 2022-23

249

Standalone Financial Statements
For trade receivables, 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 measured at fair value on a recurring basis as at March 31, 2023 is as follows :(In ₹ crore)

Particulars

As atMarch 31,2023

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3

AssetsInvestments (Refer to Note 2.5)
Tax-free bonds

2,120

1,331

789

–

Target maturity fund units

402

402

–

–

Government bonds

14

14

–

–

Liquid mutual fund units

260

260

–

–

Certificates of deposit

2,765

–

2,765

–

Commercial papers

420

–

420

–

Non-convertible debentures

3,366

1,364

2,002

–

Government securities

6,856

6,856

–

–

Equity instruments

3

–

–

3

Preference securities

193

–

–

193

Other investments

82

–

–

82

79

–

79

–

56

–

56

–

OthersDerivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward andoption contracts (Refer to Note 2.13)

During the year ended March 31, 2023, tax-free bonds and government securities of ₹383 crore were transferred from Level 2 to Level 1 offair value hierarchy, since these were valued based on quoted price. Further, non-convertible debentures of ₹1,611 crore were transferredfrom 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 measured at fair value on a recurring basis as at March 31, 2022 was as follows :(In ₹ crore)

Particulars

As atMarch 31,2022

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3

2,425

1,238

1,187

–

13

13

–

–

Liquid mutual fund units

1,337

1,337

–

–

Certificates of deposit

3,141

–

3,141

–

Non-convertible debentures

3,873

3,472

401

–

AssetsInvestments (Refer to Note 2.5)
Tax-free bonds
Government bonds

250

Infosys Integrated Annual Report 2022-23

Particulars

As atMarch 31,2022

Government securities

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3

7,215

7,177

38

–

Equity instruments

2

–

–

2

Preference securities

192

–

–

192

Compulsorily convertible debentures

7

–

–

7

Other investments

76

–

–

76

131

–

131

–

11

–

11

–

OthersDerivative financial instruments – gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities
Derivative financial instruments – loss on outstanding foreign exchange forward andoption contracts (Refer Note 2.13)

During the year ended March 31, 2022, tax-free bonds of ₹576
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, non-convertible debentures andgovernment securities of ₹890 crore were transferred fromLevel 1 to Level 2 of fair value hierarchy, since these were valued
based on market observable inputs.

The Company's exposure to credit risk is influenced mainly by theindividual characteristic of each customer and the concentrationof risk from the top few customers.

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

Market risk

Financial risk management
Financial risk factors
The Company's activities expose it to a variety of financial
risks–market risk, credit risk and liquidity risk. The Company's
primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its
financial performance. The primary market risk to the Company
is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures.

The gross carrying amount of a financial asset is writtenoff (either partially or in full) when there is no realistic
prospect of recovery.

The Company operates internationally and a major portion of
the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk throughits sales and services in the United States and elsewhere, andpurchases from overseas suppliers in various foreign currencies.
The Company holds derivative financial instruments, such as
foreign exchange forward and option contracts to mitigate therisk of changes in exchange rates on foreign currency exposures.
The exchange rate between the Indian Rupee and foreign
currencies has changed substantially in recent years and may
fluctuate substantially in the future. Consequently, the results of
the Company’s operations are adversely affected as the Rupee
appreciates / depreciates against these currencies.

The analysis of the foreign currency risk from financial assets and liabilities as at March 31, 2023 is as follows :(In ₹ crore)

Particulars

US DollarEuro

UK PoundSterling

Australian
DollarOther
currencies

Total

Net financial assets

18,436

5,442

1,612

1,765

2,278

29,533

Net financial liabilities(10,017)(1,898)

(682)

(926)

(1,082)(14,605)

8,419

3,544

930

839

1,196

14,928Total

The analysis of the foreign currency risk from financial assets and liabilities as at March 31, 2022 was as follows :(In ₹ crore)

Particulars

US DollarEuro

UK PoundSterling

Australian
DollarOther
currencies

Total

Net financial assets

16,185

4,148

1,290

1,314

1,670

24,607

Net financial liabilities(8,202)(1,689)

(678)

(956)

(875)

(12,400)

Total

7,983

2,459

612

358

795

12,207

Infosys Integrated Annual Report 2022-23

251

Standalone Financial Statements
Sensitivity analysis between Indian Rupee and US Dollar
Particulars

Year ended March 31,

Impact on the Company's incremental operating margins

2023

2022

0.47%

0.48%

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency. This is due to exchange rate fluctuations between the previous reporting period and the current reporting period.
Derivative financial instruments
The Company holds derivative financial instruments, such as foreign currency forward and option contracts, to mitigate the risk ofchanges in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. These derivative
financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or
indirectly observable in the marketplace.
The details in respect of outstanding foreign currency forward and option contracts are as follows :Particulars

As at March 31,
2023

2022

In million

In ₹ crore

In million

In ₹ crore

–

–

8

67

Derivatives designated as cash flow hedges
Forward contracts
In EuroOption contracts
In Australian Dollar

140

770

185

1,050

In Euro

325

2,907

280

2,358

In UK Pound Sterling

55

559

32

318

10

55

–

–

Other derivatives
Forward contracts
In Australian Dollar
In Canadian Dollar

–

–

34

205

266

2,382

266

2,240

In New Zealand Dollar

30

154

20

105

In Norwegian Krone

100

79

80

70

In Singapore Dollar

45

278

6

34

In Swiss Franc

–

–

14

115

In EuroIn US Dollar

1,486

12,209

1,004

7,622

In UK Pound Sterling

76

775

44

438

In South African rand

85

39

45

24

In Australian Dollar

30

165

–

–

In Euro

160

1,431

81

682

In UK Pound Sterling

15

153

–

–

In US Dollar

300

2,465

677

Option contracts

5,131

Total forward and option contracts

24,421

20,459252

Infosys Integrated Annual Report 2022-23

The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based on
the remaining period as at the Balance Sheet date :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Not later than one month

10,972

5,323

Later than one month and not later than threemonths10,122

11,973

3,327
24,421

3,163
20,459Later than three months and not later than
one year
Total

During the years ended March 31, 2023 and March 31, 2022,
the Company has designated certain foreign exchange forward
and option contracts as cash flow hedges to mitigate the riskof foreign exchange exposure on highly probable forecasted
cash transactions. The related hedge transactions for balancein cash flow hedge reserve as at March 31, 2023 are expected
to occur and reclassified to Statement of Profit and Loss
within three months.
The Company determines the existence of an economic
relationship between the hedging instrument and hedged item
based on the currency, amount and timing of its forecasted
cash flows. Hedge effectiveness is determined at the inceptionof the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic
relationship exists between the hedged item and hedging

instrument, including whether the hedging instrument is
expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer
optimal but the risk management objective remains unchanged
and the hedge continues to qualify for hedge accounting,the hedge relationship will be rebalanced by adjusting either thevolume of the hedging instrument or the volume of the hedged
item so that the hedge ratio aligns with the ratio used for risk
management purposes. Any hedge ineffectiveness is calculated
and accounted for in the Statement of Profit or Loss at the time ofthe hedge relationship rebalancing.
The reconciliation of cash flow hedge reserve for the years ended
March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Balance at the beginning of the
year

2

10

Gain / (Loss) recognized in othercomprehensive income during the
year

90

102

Amount reclassified to profit andloss during the year

(99)

(113)

Tax impact on above

2

3

Balance at the end of the year

(5)2

Gain / (Loss)

The Company offsets a financial asset and a financial liability
when it currently has a legally enforceable right to set off
the recognized amounts and the Company intends either
to settle on a net basis, or to realize the asset and settle theliability simultaneously.

The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows :(In ₹ crore)

Particulars

As at March 31, 2023

As at March 31, 2022

Derivative
financialasset

Derivative
financialliability

Derivative
financialasset

Derivative
financialliability

Gross amount of recognized financial asset / liability

103

(80)

167

(47)

Amount set off

(24)
79

24
(56)

(36)
131

36
(11)

Net amount presented in Balance Sheet

Infosys Integrated Annual Report 2022-23

253

Standalone Financial Statements
Credit risk
Credit risk refers to the risk of default on its obligation by
the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily
from trade receivables amounting to ₹20,773 crore and ₹18,966
crore as at March 31, 2023 and March 31, 2022, respectively andunbilled revenue amounting to ₹12,384 crore and ₹9,279 crore
as at March 31, 2023 and March 31, 2022, respectively. Trade
receivables and unbilled revenue are typically unsecured andare derived from revenue from customers majorly located in
the US and Europe. Credit risk has always been managed by
the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of thecustomers to which the Company grants credit terms in thenormal course of business. The Company uses the expectedcredit loss model to assess any required allowances; and uses a
provision matrix to compute the expected credit loss allowancefor trade receivables and unbilled revenues. This matrix takes
into account credit reports and other related credit information
to the extent available.

Liquidity risk is defined as the risk that the Company will not beable to settle or meet its obligations on time.

The details in respect of percentage of revenues generated fromtop five customers and top ten customers are as follows :(In %)

Year ended March 31,
2023

Majority of investments of the Company are fair valued basedon Level 1 or Level 2 inputs. These investments primarily include
investment in liquid mutual fund units, target maturity fundunits, tax free bonds, certificates of deposit, commercial paper,
treasury bills, government securities, quoted bonds issued bygovernment and quasi-government organizations andnon-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 Company's
risk management program.
Liquidity risk

The Company's exposure to credit risk is influenced mainlyby the individual characteristic of each customer and theconcentration of risk from the top few customers. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.

Particulars

Credit risk on cash and cash equivalents is limited as theCompany generally invests in deposits with banks and financial
institutions with high ratings, assigned by internationaland domestic credit rating agencies. Ratings are monitored
periodically and the Company has considered the latest
available credit ratings as at the date of approval of thesefinancial statements.

2022

Revenue from top five customers

11.3

11.9

Revenue from top ten customers

19.6

20.5

Credit risk exposure
The Company's credit period generally ranges from 30-75 days.
The allowance for lifetime expected credit loss on customer
balances recognized for the years ended March 31, 2023 andMarch 31, 2022 is ₹139 crore and ₹93 crore, respectively.

The Company's principal sources of liquidity are cash and cash
equivalents and the cash flow that is generated from operations.
The Company has no outstanding borrowings. The Company
believes that the working capital is sufficient to meet its
current requirements.
As at March 31, 2023, the Company had a working capital of₹24,640 crore including cash and cash equivalents of ₹6,534 crore
and current investments of ₹4,476 crore. As at March 31, 2022,
the Company had a working capital of ₹27,461 crore including
cash and cash equivalents of ₹12,270 crore and current
investments of ₹5,467 crore.
As at March 31, 2023 and March 31, 2022, the outstanding
compensated absences were ₹1,969 crore and ₹1,850 crore,
respectively, which have been substantially funded. Accordingly,
no liquidity risk is perceived.

The movement in credit loss allowance on customer
balance is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Balance at the beginning

673

615

Impairment loss recognized /(reversed), net

139

93

Amounts written off

(145)

(49)

Translation differences

32
699

14
673

Balance at the end

254

Infosys Integrated Annual Report 2022-23

The details regarding the contractual maturities of significant financial liabilities as at March 31, 2023 is as follows :(In ₹ crore)

Particulars

Less than 1year

1-2 years

2-4 years

4-7 years

Total

Trade payables

2,426

–

–

–

2,426

Other financial liabilities on an undiscounted basis (Refer toNote 2.13)

10,752

965

264

13

11,994The details regarding the contractual maturities of significant financial liabilities as at March 31, 2022 was as follows :(In ₹ crore)

Particulars

Less than 1year

1-2 years

2-4 years

4-7 years

Total

Trade payables

2,669

–

–

–

2,669

Other financial liabilities on an undiscounted basis (Refer toNote 2.13)

9,496

381

202

10

10,0892.12 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 fromequity, net of any tax effects.

The reserve should be utilized by the Company for acquiring newplant 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

Description of reserves

Other components of equity include remeasurement of
net defined benefit liability / asset, equity instruments fairvalued through other comprehensive income, changes on fairvaluation of investments and changes in fair value of derivatives
designated as cash flow hedges, net of taxes.

Capital redemption reserve

Cash flow hedge reserve

In accordance with section 69 of the Indian Companies Act, 2013,
the Company creates capital redemption reserve equal to thenominal value of the shares bought back as an appropriationfrom general reserve / retained earnings.

When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value ofthe derivative is recognized in other comprehensive income andaccumulated 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.

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 fromshare premium account.

2.12.1 Equity share capital(In ₹ crore, except as otherwise stated)

Particulars

Equity shares, ₹5 par value

The share options outstanding account is used to record the fairvalue of equity-settled, share-based payment transactions with
employees. The amounts recorded in share options outstanding
account are transferred to securities premium, upon exercise ofstock options, and transferred to general reserve on account ofstock options not exercised by employees.

480,00,00,000 (480,00,00,000)
equity shares

The Special Economic Zone (SEZ) 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.

Infosys Integrated Annual Report 2022-23

2023

2022

2,400

2,400

2,074

2,103

2,074

2,103

Authorized

Share options outstanding accountSpecial Economic Zone (SEZ) Re-investment Reserve

As at March 31,

Issued, subscribed and paid-up
Equity shares, ₹5 par value (1)414,85,60,044 (420,67,38,641) equity
shares fully paid-up(1)

Refer to Note 2.22 for details of basic and diluted shares

Forfeited shares amounted to ₹1,500 (₹1,500)

255

Standalone Financial Statements
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 byAmerican 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 heldby the shareholders, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. For detailsof shares reserved for issue under the employee stock option
plan of the Company, refer to the note below.
In the period of five years immediately preceding
March 31, 2023 :Bonus issue
The Company has allotted 218,41,91,490 fully paid-up shares offace value ₹5 each during the quarter ended September 30, 2018,
pursuant to bonus issue approved by the shareholders throughpostal ballot. The bonus shares were issued by capitalizationof profits transferred from general reserve. Bonus share of one
equity share for every equity share held, and a bonus issue, viz.,a stock dividend of one American Depositary Share (ADS) for
every ADS held, respectively, has been allotted. Consequently,
the ratio of equity shares underlying the ADSs held by an
American Depositary Receipt holder remains unchanged.
The bonus shares once allotted shall rank pari passu in all
respects and carry the same rights as the existing equity
shareholders. These shall be entitled to participate in full,in any dividend and other corporate action, recommended anddeclared after the new equity shares are allotted.
BuybackIn the period of five years immediately preceding March 31, 2023,
including the buyback completed in February 2023, the Company
had purchased and extinguished a total of 22,67,52,951 fully
paid-up equity shares of face value ₹5 each from the stock
exchange. The Company has only one class of equity shares.
Capital Allocation Policy and buyback
Effective fiscal 2020, the Company expects to return
approximately 85% of the free cash flow cumulatively over a
5-year period through a combination of semi annual dividends
and / or share buyback and / or special dividends, subject
to applicable laws and requisite approvals, if any. Free cash
flow is defined as net cash provided by operating activities
less capital expenditure as per the consolidated Statementof Cash Flows prepared under IFRS. Dividend and buyback
include applicable taxes.
Buyback completed in February 2023
In line with the Capital Allocation Policy, the Board, at its meeting
held on October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (maximum buyback size,

256

excluding buyback tax) at a price not exceeding ₹1,850 per share(maximum buyback price), subject to shareholders' approval by
way of postal ballot.
The shareholders approved the proposal of buyback of Equity
Shares recommended by the Board of Directors by way of
e-voting on the postal ballot, the results of which were declaredon December 3, 2022. The buyback was offered to all equity
shareholders of the Company (other than the Promoters, thePromoter Group and Persons in Control of the Company) under
the open market route through the stock exchange. The buybackof equity shares through the stock exchange commenced on
December 7, 2022 and was completed on February 13, 2023.
During this buyback period, the Company had purchased andextinguished a total of 6,04,26,348 equity shares from the stock
exchange at a volume weighted average buyback price of₹1,539.06 per equity share comprising 1.44% of the pre buyback
paid-up equity share capital of the Company. The buyback
resulted in a cash outflow of ₹9,300 crore (excluding transaction
costs and tax on buyback). The Company funded the buybackfrom its free reserves including securities premium as explainedin Section 68 of the Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2023, the Company has created ‘Capital Redemption
Reserve’ of ₹30 crore equal to the nominal value of theshares bought back as an appropriation from general reserveand retained earnings.
Buyback completed in September 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 the Board of Directors in the Annual
General meeting held on June 19, 2021.
The buyback was offered to all equity shareholders of theCompany (other than the Promoters, the Promoter Group andPersons in Control of the Company) under the open market
route through the stock exchange. The buyback of equity sharesthrough the stock exchange commenced on June 25, 2021 andwas completed on September 8, 2021. During this buyback
period, the Company had purchased and extinguished a total of
5,58,07,337 equity shares from the stock exchange at a volume
weighted average buyback price of ₹1,648.53 per equity sharecomprising 1.31% of the pre buyback paid up equity share capitalof 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 theCompanies Act, 2013.

Infosys Integrated Annual Report 2022-23

2.12.3 Dividend

In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2022, the Company has created ‘Capital Redemption
Reserve’ of ₹28 crore equal to the nominal value of the sharesbought 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, theCompany may adjust the amount of dividend payment, return
capital to shareholders, issue new shares or buy back issued
shares. As of March 31, 2023, the Company has only one class ofequity shares and has no debt. Consequent to the above capital
structure, there are no externally imposed capital requirements.

The details of the shares held by promoters as at
March 31, 2023 are as follows :Sudha Gopalakrishnan

No. of shares

The Company declares and pays dividends in Indian Rupees.
Companies are required to pay / distribute dividend after
deducting applicable 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 in accordance with Companies Act,
2013 is as follows :2.12.2 Shareholding of promoter

Promoter name

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

% of % change
total during thesharesyear

9,53,57,000

2.30

–

Rohan Murty

6,08,12,892

1.47

–

S. Gopalakrishnan

4,18,53,808

1.01

–

Nandan M. Nilekani

4,07,83,162

0.98

–

Akshata Murty

3,89,57,096

0.94

–

Asha Dinesh

3,85,79,304

0.93

–

Sudha N. Murty

3,45,50,626

0.83

–

Rohini Nilekani

3,43,35,092

0.83

–

Dinesh Krishnaswamy

3,24,79,590

0.78

–

Shreyas Shibulal

2,37,04,350

0.57

–

N. R. Narayana Murthy

1,66,45,638

0.40

–

Nihar Nilekani

1,26,77,752

0.31

–

Janhavi Nilekani

85,89,721

0.21–

Kumari Shibulal

52,48,965

0.13–

Deeksha Dinesh

76,46,684

0.18–

Divya Dinesh

76,46,684

0.18–

Meghana Gopalakrishnan

48,34,928

0.12–

Shruti Shibulal

27,37,538

0.07–

S. D. Shibulal

58,14,733

0.14–(In ₹)

Particulars

Year ended March 31,
2023

2022

Final dividend for fiscal 2021

15.00

Interim dividend for fiscal 2022

15.00

Final dividend for fiscal 2022

16.00

Interim dividend for fiscal 2023

16.50

During the year ended March 31, 2023, on account of the final
dividend for fiscal 2022 and interim dividend for fiscal 2023, theCompany has incurred a net cash outflow of ₹13,675 crore.
The Board of Directors, in their meeting held on April 13, 2023,
recommended a final dividend of ₹17.50 per equity share for thefinancial year ended March 31, 2023. This payment is subject tothe approval of shareholders in the AGM of the Company to beheld on June 28, 2023 and if approved, would result in a net cash
outflow of approximately ₹7,260 crore.

Promoters group
Gaurav Manchanda

1,37,36,226

0.33

–

Milan Shibulal Manchanda

69,67,934

0.17–

Nikita Shibulal Manchanda

69,67,934

0.17–

Bhairavi Madhusudhan
Shibulal66,79,240

0.16–

Shray Chandra

7,19,424

0.02–

Tanush Nilekani Chandra

33,56,017

0.08–

Infosys Integrated Annual Report 2022-23

257

Standalone Financial Statements
The details of shareholders holding more than 5% shares as at March 31, 2023 and March 31, 2022 are as follows :Name of the shareholder

As at March 31, 2023
Number of shares

As at March 31, 2022
% held Number of shares% heldDeutsche Bank Trust Company Americas (Depository of
ADR's - legal ownership)

50,57,90,851

12.19

66,63,70,669

15.84Life Insurance Corporation of India

29,82,44,977

7.19

24,33,47,641

5.78

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2023 andMarch 31, 2022 is as follows :(In ₹ crore, except as stated otherwise)

Particulars

As at March 31, 2023
Number of shares

As at the beginning of the period

420,67,38,641

Add : Shares issued on exercise of employee stock options

Amount Number of shares
2,103

Amount426,06,60,846

2,130

22,47,751

1

18,85,132

1

6,04,26,348

30

5,58,07,337

28

414,85,60,044

2,074

420,67,38,641

2,103

Less : Shares bought backAs at the end of the period

As at March 31, 2022

2.12.4 Employee Stock Option Plan :2015 Stock Incentive Compensation Plan ("the 2015 Plan")

Accounting policy

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 employeesof the Company and its subsidiaries under 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). These instruments will generally vest over a
period of four years. The plan numbers mentioned are further
adjusted with the September 2018 bonus issue.

The Company recognizes compensation expense relating toshare-based payments in net profit based on estimatedfair-values of the awards on the grant date. The estimated fairvalue of awards is recognized as an expense in the Statement ofProfit and Loss on a straight-line basis over the requisite service
period for each separately vesting portion of the award as if theaward 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 toeligible employees of the Company and its subsidiaries underthe 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 ofdefined annual performance parameters as determined by theadministrator (Nomination and Remuneration Committee).
The performance parameters will be based on a combination ofrelative 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 sharesto vest based on performance. These instruments will generally
vest between a minimum of one to a maximum of three years
from the grant date.

258

The equity-settled and cash-settled RSUs and stock options
would vest generally over a period of four 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 theexercise price of the stock options would be the market price ason the date of grant.
Controlled trust holds 1,21,72,119 shares and 1,37,25,712 sharesas at March 31, 2023 and March 31, 2022, respectively under the2015 Plan. Out of these shares, 2,00,000 equity shares each havebeen earmarked for welfare activities of the employees as at
March 31, 2023 and March 31, 2022.

Infosys Integrated Annual Report 2022-23

The summary of grants made during the years ended March 31, 2023 and March 31, 2022 is as follows :Particulars

2019 Plan

2015 Plan

Year ended March 31,

Year ended March 31,

2023

2022

2023

2022

Key Management Personnel (KMP)

2,10,643

1,48,762

3,67,479

2,84,543

Employees other than KMP

37,04,014

27,01,867

17,84,975

13,05,880

39,14,657

28,50,629

21,52,454

15,90,423

Key Management Personnel (KMP)

–

–

–

–

Employees other than KMP––

92,40049,960–39,14,657–
28,50,629

92,40022,44,854

49,96016,40,383

Equity-settled RSUs

Cash-settled RSUs

Total Grants

Notes on grants to KMP :CEO & MD
Based on the recommendations of the Board and the approval of
the shareholders at the AGM held on June 25, 2022, Salil Parekh
has been reappointed as the CEO and MD of the Company for aterm commencing on July 1, 2022 and ending on March 31, 2027.
The remuneration is approved by the shareholders in the AGM.
The revised employment agreement is effective July 1, 2022.
Under the 2015 Plan
The Board, on April 13, 2022, based on the recommendations of
the Nomination and Remuneration Committee, in accordancewith the terms of his employment agreement effective till June30, 2022, approved the grant of performance-based RSUs offair value of ₹13 crore for fiscal 2023 under the 2015 Plan. These
RSUs will vest in line with the employment agreement based onachievement of certain performance targets. Accordingly, 84,361
performance-based RSUs were granted effective May 2, 2022.
Further, in line with the shareholders approval and revised
employment contract which is effective July 1, 2022, theBoard, on July 24, 2022, based on the recommendations of theNomination and Remuneration Committee :••Approved the grant of performance-based RSUs (Annual
performance equity grant) of fair value of ₹21.75 crore
for fiscal 2023 under the 2015 Plan. These RSUs willvest in line with the employment agreement based onachievement of certain performance targets. Accordingly,
140,228 performance-based RSUs were granted effective
August 1, 2022.
Approved the performance-based grant of RSUs (Annual
performance equity ESG grant) of fair value of ₹2 crore forfiscal 2023 under the 2015 Plan. These RSUs will vest in linewith the employment agreement based on achievement ofcertain environment, social and governance milestones as
determined by the Board. Accordingly, 12,894 performancebased RSUs were granted effective August 1, 2022.

Infosys Integrated Annual Report 2022-23•

Approved the performance-based grant of RSUs (Annual
performance equity TSR grant) of fair value of ₹5 crore forfiscal 2023 under the 2015 Plan. These RSUs will vest in linewith the employment agreement based on Company’s
performance on cumulative relative TSR over the years and as
determined by the Board. Accordingly, 32,236 performancebased RSUs were granted effective August 1, 2022.

For the above RSUs, the grant date in accordance with Ind AS 102,
Share-based payment is July 1, 2022.
Further, in accordance with the employee agreement which
has been approved by the shareholders, the CEO is eligible toreceive an annual grant of RSUs of fair value ₹3 crore which
will vest overtime in three equal annual installments upon thecompletion of each year of service from the respective grant
date. Accordingly, annual time-based grant of 19,341 RSUs wasmade effective February 1, 2023 for fiscal 2023.
Though the annual time-based grants and annual performance
equity TSR grant for the remaining employment term endingon March 31, 2027 have not been granted as of March 31, 2023,
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 payment.
Under the 2019 Plan
The Board, on April 13, 2022, based on the recommendationsof the Nomination and Remuneration Committee, approved
performance-based grant of RSUs amounting to ₹10 crore forfiscal 2023 under the 2019 Plan. These RSUs will vest in line withthe employment agreement effective till June 30, 2022 based onachievement of certain performance targets. Accordingly, 64,893
performance-based RSUs were granted effective May 2, 2022.

259

Standalone Financial Statements
Other KMP

The break-up of employee stock compensation
expense is as follows :Under the 2015 Plan
During the year ended March 31, 2023, based onrecommendations of the Nomination and Remuneration
Committee, the Board approved 66,872 time based RSUs and11,547 performance-based RSUs to other KMP under the 2015
Plan. Time based RSUs will vest over four years and performancebased RSUs will vest over one to three years based on certain
performance targets.
Under the 2019 Plan
During the year ended March 31, 2023, based onrecommendations of the Nomination and Remuneration
Committee, the Board approved performance-based grants of
1,45,750 RSUs to other KMPs under the 2019 Plan. These RSUs
will vest over three years based on achievement of certain
performance targets.

(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Granted to :
KMP #

49

65

Employees other than KMP

411

307

Total (1)

460

372

1

13

(1)

#

Cash-settled stock compensation
expense included in the above

Includes reversal of employee stock compensation expense on account of
resignation / retirement of key management personnel.

The activity in the 2015 and 2019 Plan for equity-settled share-based payment transactions during the years ended March 31, 2023 andMarch 31, 2022 is as follows :Particulars

Year ended March 31, 2023
Shares arising out
of options

Year ended March 31, 2022

Weighted average
exercise price (₹)

Shares arising out
of options

Weighted average
exercise price (₹)

2015 Plan : RSUs
Outstanding at the beginning

62,32,975

4.82

80,47,240

4.52

Granted21,52,454

5.00

15,90,423

5.00

Exercised

21,05,904

4.50

25,69,983

4.07

Forfeited and expired

8,71,507

4.93

8,34,705

4.63

Outstanding at the end

54,08,018

5.00

62,32,975

4.82

Exercisable at the end

7,87,976

4.97

6,53,775

4.51

7,00,844

557

10,49,456

535

2015 Plan : Employee Stock Options (ESOPs)
Outstanding at the beginning
Granted

–

–

–

–

Exercised

5,66,814

596

3,48,612

529

Forfeited and expired

–

–

–

–

Outstanding at the end

1,34,030

529

7,00,844

557

Exercisable at the end

1,34,030

529

7,00,844

557

Outstanding at the beginning

49,58,938

5.00

30,50,573

5.00

Granted39,14,657

5.00

28,50,629

5.00

Exercised

11,28,626

5.00

7,55,557

5.00

2019 Plan : RSUs

Forfeited and expired

5,22,931

5.00

1,86,707

5.00

Outstanding at the end

72,22,038

5.00

49,58,938

5.00

Exercisable at the end

13,52,150

5.00

6,92,638

5.00

During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2015 Planon the date of exercise was ₹1,515 and ₹1,705, respectively.
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2019 Planon the date of exercise was ₹1,485 and ₹1,560, respectively.

260

Infosys Integrated Annual Report 2022-23

The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 is as follows :Range of exercise prices
per share (₹)

2019 Plan – Options outstanding
No. of sharesarising out of
options

0-5 (RSU)

2015 Plan – Options outstanding

Weighted
Weighted
average average exercise
remaining
price (₹)
contractual life

No. of sharesarising out of
options

Weighted
Weighted
average average exercise
remaining
price (₹)
contractual life

72,22,038

1.33

5.00

54,08,018

1.49

5.00

–

–

–

1,34,030

1.77

529

450-630 (ESOP)The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 was as follows :Range of exercise prices
per share (₹)

2019 Plan – Options outstanding
No. of sharesarising out of
options

0-5 (RSU)

2015 Plan – Options outstanding

Weighted
Weighted
average average exercise
remaining
price (₹)
contractual life

No. of sharesarising out of
options

Weighted
Weighted
average average exercise
remaining
price (₹)
contractual life

49,58,938

1.43

5.00

62,32,975

1.47

4.82

-

–

–

7,00,844

0.65

557

450-650 (ESOP)As at March 31, 2023 and March 31, 2022, 2,24,924 and 2,65,561 cash settled options were outstanding, respectively. The carrying value of
liability towards cash-settled share-based payments was ₹4 crore and ₹13 crore as at March 31, 2023 and March 31, 2022 respectively.
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options, andMonte 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 ofthe observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of theoptions. 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

Weighted average share price (₹) / ($ ADS)

For options granted in
Fiscal 2023 –Equity shares– RSU

Fiscal 2023 –ADS – RSU

Fiscal 2022 –Equity shares– RSU

Fiscal 2022 –ADS – RSU

1,525

18.08

1,791

24.45

Exercise price (₹) / ($ ADS)

5.00

0.07

5.00

0.07

Expected volatility (%)

23-32

27-34

20-35

25-36

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 (%)

5-7

2-5

4-6

1-3

1,210

13.69

1,548

20.82

Weighted average fair value as on grant date (₹) / ($ ADS)

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.

Infosys Integrated Annual Report 2022-23

261

Standalone Financial Statements
2.13 Other financial liabilities(In ₹ crore)

Particulars

As at March 31,
2023

2022

76

86

Non-current
OthersCompensated absences
Accrued compensation to employees(1)

Accrued expenses (1)Other payables (1)(6)

5

8

1,184

503

52

79

1,317

676

37

36

Accrued compensation to employees (1)

3,072

2,999

Accrued expenses

4,430

4,603

17

12

Total non-current other financial liabilities
Current
Unpaid dividends (1)Others(1)(4)

Retention monies (1)Capital creditors(1)

Compensated absences
Other payables (1)(5)(6)
Foreign currency forward and options contracts

652

395

1,893

1,764

2,540

1,449

56

11

Total current other financial liabilities

12,697

11,269Total other financial liabilities

14,014

11,945

11,98910,084(2)(3)(1)Financial liability carried at amortized cost

(2)

Financial liability carried at fair value through profit or loss

42

8

(3)

Financial liability carried at fair value through other comprehensive income

14

3

(4)

Includes dues to subsidiaries

30

7

(5)

Includes dues to subsidiaries

422

316

(6)

Deferred contract cost (Refer to Note 2.10) 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.
The Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability. As at March 31,
2023, the financial liability pertaining to such arrangements amounts to ₹114 crore.

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.

2.14 Trade payables(In ₹ crore)

Particulars

As at March 31,

Outstanding dues of micro enterprises and small enterprises
Outstanding dues of creditors other than micro enterprises and small enterprises
Total trade payables(1)

Includes dues to subsidiaries

(1)

2023

2022

97

3

2,329

2,666

2,426
653

2,669
613

The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) has been determined to the extent such parties have been identified based on the information information
available with the Company.
(In ₹ crore)

262

Infosys Integrated Annual Report 2022-23

Particulars

As at March 31,
2023

2022

Principal

973Interest––

Interest paid by the Company under MSMED Act, 2006 along with the amounts of the payment made to
the supplier beyond the appointed day

33

71

Interest due and payable for the period of delay in making payment (which has been paid but
beyond the appointed day during the year) but without adding the interest specified under
the MSMED Act, 2006;––

Interest accrued and remaining unpaid at the end of the year––

Interest remaining due and payable (pertaining to prior years), until such date when the interest dues
as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible
expenditure under Section 23 of MSMED Act 2006.

––

Amount remaining unpaid :The trade payables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

Not due

Outstanding dues to MSMEOthersTotal trade payables

Outstanding for following periods from due date of payment

Total

Less than 1 year

1-2 years

2-3 years

More than 3 years

97

–

–

–

–

97

3

–

–

–

–

3

1,943

386

–

–

–

2,329

2,131

535

–

–

–

2,666

2,040

386

–

–

–

2,426

2,134

535

–

–

–

2,669

Relationship with struck-off companies(In ₹ crore)

Name of struck off company
Compulease Networks Private Limited

Nature of transactions

Transactions during the Balance outstanding
year March 31, 2022 as at March 31, 2022

Payables–*–Relationship with thestruck off company
Vendor* Less than ₹1 crore

There are no transactions with struck-off companies for the year ending March 31, 2023.

Infosys Integrated Annual Report 2022-23

263

Standalone Financial Statements
2.15 Other liabilities(In ₹ crore)

Particulars

As at March 31,
2023

2022

Provision for post-sales client support and other provisions

Non-current
Accrued defined benefit liability(Refer to Note 2.21)

cost of terminating the contract and the expected net cost ofcontinuing with the contract. Before a provision is established,
the Company recognizes any impairment loss on the assets
associated with that contract.

(In ₹ crore)

412

332

Particulars

As at March 31,

Others2023

Deferred income

29Deferred income – government
grants–19

Total non-current otherliabilities

Unearned revenue

414

360

2

2

5,491

5,179

28

10

Withholding taxes and others

2,088

2,190

7,609
8,023

7,381
7,741

1,163

920

1,163

920

The movement in the provision for post-sales client
support is as follows :(In ₹ crore)

Balance at the beginning

Deferred income – government
grantsTotal other liabilities

Post-sales client support and others
Total provisions

Particulars

OthersTotal current other liabilities

Current
OthersCurrent
Accrued defined benefit liability(Refer to Note 2.21)

2022

Year ended March 31, 2023
880

Impact on adoption ofamendment to IAS 37

9Provision recognized /(reversed)

356

Provision utilized(128)

2.16 Provisions

Translation difference46

Accounting policy

Balance at the end

1,163

A provision is recognized if, as a result of a past event, theCompany has a present legal or constructive obligation thatis 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 historicalexperience 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. Provisions for estimated losses,
if any, on incomplete contracts are recorded in the period inwhich such losses become probable based on the estimatedefforts or costs to complete the contract. The provision ismeasured at the present value of the lower of the expected

264

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

2.17 Income taxes
Accounting policy
Income tax expense comprises current and deferred income tax.
Income tax expense is recognized in net profit in the Statementof Profit and Loss, except to the extent that it relates to items
recognized directly in equity, in which case it is recognized inequity 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 theircarrying 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. These are expected toapply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect ofInfosys Integrated Annual Report 2022-23

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 deferredincome tax asset is recognized to the extent that it is probablethat 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 thatthe earnings of the subsidiary or branch will not be distributed in
the foreseeable future.
The Company offsets current tax assets and current tax
liabilities; deferred tax assets and deferred tax liabilities; where
it has a legally enforceable right to set off the recognizedamounts and where it intends either to settle on a net basis,or to realize the asset and settle the liability simultaneously.
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 is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Current taxes

8,167

6,960

Deferred taxes

208

300

8,375

7,260

Income tax expense

Income tax expense for the years ended March 31, 2023 andMarch 31, 2022 includes reversal (net of provisions) of ₹116 croreand ₹250 crore, respectively. These reversals pertaining to priorperiods are primarily on account of adjudication of certain
disputed matters, upon filing of tax return and completion ofassessments, across various jurisdictions.
A reconciliation of the income tax provision to the amountcomputed by applying the statutory income tax rate to theincome before income taxes is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Profit before income taxes

31,64328,495

Enacted tax rates in India

34.94%

34.94%

Computed expected tax expense

11,057

9,957

Tax effect due to non-taxable
income for Indian tax purposes(2,916)(2,849)Overseas taxes

1,028

958

Tax provision (reversals)

(116)

(250)

Effect of exempt non-operating
income

(563)

(478)

Effect of non-deductible expenses

144

122

–

(104)

Impact of change in tax rate
Others

(259)

(96)

Income tax expense

8,375

7,260

Infosys Integrated Annual Report 2022-23

The applicable Indian corporate statutory tax rate for the years
ended March 31, 2023 and March 31, 2022 is 34.94% each.
The foreign tax expense is due to income taxes payable
overseas, principally in the United States. In India, the Company
has benefited from certain income tax incentives that theGovernment of India had provided for export of software andservices from the units registered under the Special Economic
Zones Act (SEZs), 2005. SEZ units, which began the provisionof services on or after April 1, 2005 are eligible for a deductionof 100% of profits or gains derived from the export of services
for the first five years from the financial year in which the unit
commenced the provision of services and 50% of such profits
or gains for further five years. Up to 50% of such profits orgains is also available for a further five years subject to creationof a Special Economic Zone (SEZ) Re-investment Reserve outof the profit for the eligible SEZ units and utilization of suchreserve by the Company for acquiring new plant and machinery
for the purpose of its business as per the provisions of the
Income-tax Act, 1961.
Deferred income tax for the years ended March 31, 2023 andMarch 31, 2022 substantially relates to origination and reversal of
temporary differences.
Infosys is subject to a 15% Branch Profit Tax (BPT) in the US to
the extent its US branch's net profit during the year is greaterthan the increase in the net assets of the US branch during theyear, computed in accordance with the Internal Revenue Code.
As at March 31, 2023, Infosys' US branch net assets amounted toapproximately ₹6,948 crore. As at March 31, 2023, the Company
has a deferred tax liability for branch profit tax of ₹148 crore (netof credits), as the Company estimates that these branch profits
are expected to be distributed in the foreseeable future.
Deferred income tax liabilities have not been recognized on
temporary differences amounting to ₹10,948 crore and ₹9,618
crore as at March 31, 2023 and March 31, 2022, respectively,
associated with investments in subsidiaries and branches as
the Company is able to control the timing of reversal of thetemporary difference and it is probable that the temporary
differences will not reverse in the foreseeable future.
The Company majorly intends to repatriate earnings fromsubsidiaries and branches only to the extent these can be
distributed in a tax free manner.
Deferred income tax assets have not been recognized on
accumulated losses of ₹1,358 crore and ₹1,345 crore as at
March 31, 2023 and March 31, 2022, respectively as it is probablethat future taxable profit will not be available against which
the unused tax losses can be utilized in the foreseeable future.
Majority of the accumulated losses as at March 31, 2023 will
expire between financial years 2028 to 2030.

265

Standalone Financial Statements
The details of income tax assets and income tax liabilities as at March 31, 2023 and March 31, 2022 are as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Income tax assets

5,916

5,585

Current income tax liabilities

2,834
3,082

2,179
3,406

Net current income tax assets / (liabilities) at the end

The gross movement in the current income tax assets / (liabilities) for the years ended March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Net current income tax assets / (liabilities) at the beginning

3,406

3,550

Income tax paid

7,807

6,736

Current income tax expense(8,167)(6,960)

Income tax benefit arising on exercise of stock options

51

63

Income tax on other comprehensive income

(22)

12

Tax impact on buyback expenses

98Impact on account of Ind AS 37 adoption

(2)

–

–
3,082

(3)
3,406

Translation differences
Net current income tax assets / (liabilities) at the end

The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2023 is as follows :(In ₹ crore)

Particulars

Carrying
value as ofApril 1, 2022

Changes
Changesthrough through OCI
profit andloss

Impact on
account of
Ind AS 37
adoptionTranslationdifference

Carrying
value as ofMarch 31,2023

Deferred income tax assets / (liabilities)
Property, plant and equipment

189

22

–

–

–

211

Lease liabilities

163

36

–

–

–

199

Trade receivables

169

42

–

–

–

211

Compensated absences

466

35

–

–

–

501

Post-sales client support

118

68

–

2

–

188

Derivative financial instruments

(24)

22

2

–

–

–

Credits related to branch profits

676

(13)

–

–

55

718

Intangibles through business transfer

(4)

6

–

–

–

2

Branch profit tax

(834)

35

–

–

(67)

(866)

SEZ Re-investment Reserve

(830)

(499)

–

–

–

(1,329)Others

40

38

–

–

–

78

Total deferred income tax assets / (liabilities)

129

(208)

2

2

(12)

(87)

266

Infosys Integrated Annual Report 2022-23

The movement in gross deferred income tax assets and liabilities (before set off) for the year ended March 31, 2022 was as follows :(In ₹ crore)

Particulars

Carrying
value as ofApril 1, 2021

Changes
Changes Translation
through through OCI difference
profit andloss

Carrying
value asof March
31, 2022

Deferred income tax assets / (liabilties)
Property, plant and equipment

315

(126)

–

–

189

Lease liabilities

149

14

–

–

163

Trade receivables

194

(25)

–

–

169

Compensated absences

437

29

–

–

466

Post-sales client support

115

3

–

–

118

Derivative financial instruments

(54)

27

3

–

(24)

Credits related to branch profits

355

308

–

13

676

Intangibles through business transfer

(10)

6

–

–

(4)

Branch profit tax

(500)

(316)

–

(18)

(834)

SEZ Re-investment Reserve

(613)

(217)

–

–

(830)

Others

56
444

(3)
(300)

(13)
(10)

–
(5)

40
129

Total deferred income tax assets / (liabilities)

The tax effects of significant temporary differences that resulted
in deferred income tax assets and liabilities are as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Deferred income tax assets after set off

779

970

Deferred income tax liabilities after set off

(866)

(841)

When assessing the reliability of deferred income tax assets, theManagement considers whether a portion or the entire deferredincome tax assets will not be realized. The ultimate realizationof deferred income tax assets depends on the generation of
future taxable income during the periods in which the temporary
differences become deductible. The Management considers thescheduled reversals of deferred income tax liabilities, projected
future taxable income, and tax planning strategies in making thisassessment. Based on the level of historical taxable income andprojections 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 thosedeductible differences. The amount of the deferred income tax
assets considered realizable, however, could be reduced in thenear term if estimates of future taxable income during the carryforward period are reduced.
The Company’s Advanced Pricing Arrangement (APA) with theInternal Revenue Service (IRS) for US branch income tax expiredin March 2021. The Company has applied for renewal of APA andcurrently the US taxable income is based on the Company’s best
estimate determined based on the expected value method.

Infosys Integrated Annual Report 2022-23

2.18 Revenue from operations
Accounting policy
The Company derives revenues primarily from IT services
comprising software development and related services, cloudand infrastructure services, maintenance, consulting andpackage implementation, licensing of software products andplatforms across the Company’s core and digital offerings(together called as “software related services”). Contracts withcustomers are either on a time-and-material, unit of work, fixedprice or on a fixed-timeframe basis.
Revenues from customer contracts are considered forrecognition and measurement when the contract has been
approved in writing, by the parties to the contract, the parties
have committed to perform their 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 thatreflects 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 andidentifies 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, whensold 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 costplus a margin, under which the Company estimates the costof satisfying the performance obligation and then adds anappropriate margin based on similar services.

267

Standalone Financial Statements
The Company’s contracts may include variable consideration
including rebates, volume discounts and penalties. The Company
includes variable consideration as part of transaction pricewhen there is a basis to reasonably estimate the amount of
the variable consideration and when it is probable that asignificant reversal of cumulative revenue recognized will
not occur when the uncertainty associated with the variableconsideration is resolved.
Revenue on time-and-material and unit-of-work-based contracts,are recognized as the related services are performed. Fixed-pricemaintenance revenue is recognized ratably either on a straightline 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 patternof benefits from the services rendered to the customer andCompany’s costs to fulfil the contract is not even through theperiod of contract because the services are generally discretein nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations
are satisfied over time, is recognized using the percentageof-completion method. Efforts or costs expended are used todetermine 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 todate (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 andare recognized in net profit in the period when these estimateschange or when the estimates are revised. Revenues and theestimated total costs or efforts are subject to revision as thecontract progresses. Provisions for estimated losses, if any, on
incomplete contracts, are recorded in the period in which suchlosses 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 progressbillings. Revenues in excess of billing are classified as unbilled
revenues, while billing in excess of revenues is classified ascontract liabilities (which we refer to as "unearned revenues").
In arrangements for software development and related services
and maintenance services, the revenue recognition criteria
for each distinct performance obligation is applied and thearrangements with customers generally meet this criteria forconsidering software development and related service as
distinct performance obligations. For allocating the transaction
price, the Company measures the revenue in respect of eachperformance obligation of a contract at its relative standalone
selling price. The price that is regularly charged for an item whensold separately is the best evidence of its standalone selling
price. In cases where the Company is unable to determine thestandalone selling price, the Company uses the expected costplus margin approach in estimating the standalone selling
price. For software development and related services, theperformance obligations are satisfied as and when the services
are rendered, since the customer generally obtains control of thework as it progresses.

268

Certain cloud and infrastructure services contracts include
multiple elements which may be subject to other specificaccounting guidance, such as leasing guidance. These contracts
are accounted in accordance with such specific accounting
guidance. In such arrangements where the Company isable to determine that hardware and services are distinct
performance obligations, it allocates the consideration to these
performance obligations on a relative standalone selling pricebasis. 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 isdetermined based on promise in the contract.
Revenue from licenses where the customer obtains a “rightto 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 recognizedover the access period.
Arrangements to deliver software products generally havethree elements : license, implementation and Annual Technical
Services (ATS). When implementation services are provided inconjunction with the licensing arrangement, and the license andimplementation 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 absenceof 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 implementationis considered to be a single performance obligation and therevenue is recognized using the percentage-of-completion
method while the implementation is performed. Revenue fromclient training, support and other services arising due to thesale of software products is recognized as the performanceobligations are satisfied. ATS revenue is recognized ratably on astraight-line 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 firstevaluates whether it controls the good or service before it istransferred to the customer. The Company considers whether
it has the primary obligation to fulfil the contract, inventoryrisk, pricing discretion and other factors to determine whether
it controls the goods or service and, therefore, is acting as aprincipal or an agent.
The incremental costs of obtaining a contract (i.e., costs
that would not have been incurred if the contract had notbeen obtained) are recognized as an asset if the Company
expects to recover them.

Infosys Integrated Annual Report 2022-23

Certain eligible, non-recurring costs (e.g. set-up or transitionor transformation costs) that do not represent a separate
performance obligation are recognized as an asset whensuch costs (a) relate directly to the contract; (b) generateor enhance resources of the Company that will be used insatisfying the performance obligation in the future; and(c) are expected to be recovered.
Capitalized contract costs, relating to upfront payments tocustomers, 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 the 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.

(In ₹ crore)

Revenue from software services
Revenue from products andplatforms
Total revenue from operations

Year ended March 31,
2023

2022

1,23,755

1,03,615

259
1,24,014

325
1,03,940

Disaggregated revenue information
The table below presents disaggregated revenues from contracts
with customers by offerings for the years ended March 31, 2023
and March 31, 2022, respectively. The Company believes that
this disaggregation best depicts how the nature, amount, timing
and uncertainty of our revenues and cash flows are affected byindustry, market and other economic factors.
(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

46,04343,410

Revenue by offerings
Core
DigitalTotal

77,97160,530

1,24,014

1,03,940

Digital services
Digital services comprise of service and solution offeringsof the Company that enable our clients to transform theirbusinesses. 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.

Infosys Integrated Annual Report 2022-23

Core services comprise traditional offerings of the Company thathave 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 and platforms
The Company derives revenues from the sale of products andplatforms including Infosys Applied AI which applies nextgeneration AI and machine learning.
The percentage of revenue from fixed-price contracts foreach of the years ended March 31, 2023 and March 31, 2022 isapproximately 55% and 53%, respectively.
Trade receivables and contract balances

Revenue from operations for the years ended March 31, 2023 andMarch 31, 2022 is as follows :Particulars

Core services

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 uponachievement of contractual milestones.
The Company’s receivables are rights to consideration thatare unconditional. Unbilled revenues, comprising revenues inexcess of billings from time and material contracts and fixedprice 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 timingof revenue recognition is different from the timing of invoicing to
the customers. Therefore, unbilled revenues for other fixed-pricecontracts (contract asset) are classified as non-financial asset
because the right to consideration depends on completion ofcontractual 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.
During the years ended March 31, 2023 and March 31, 2022 , thecompany recognized revenue of ₹4,391 crore and ₹2,831 crorearising from opening unearned revenue as of April 1, 2022 andApril 1, 2021, respectively.
During the years ended March 31, 2023 and March 31, 2022,
5,378 crore and ₹3,711 crore of unbilled revenue pertaining
to other fixed price and fixed-timeframe contracts asof April 1, 2022 and April 1, 2021, respectively has been
reclassified to Trade receivables upon billing to customers oncompletion of milestones.
Remaining performance obligation disclosure
The remaining performance obligation disclosure provides theaggregate amount of the transaction price yet to be recognized
as at the end of the reporting period, and an explanation as

269

Standalone Financial Statements
to when the Company expects to recognize these amounts
in revenue. Applying the practical expedient as given in
Ind AS 115, the Company has not disclosed the remaining
performance obligation related disclosures for contracts where
the revenue recognized corresponds directly with the value tothe customer of the entity's performance completed to date,typically those contracts where invoicing is on time-and-material
and unit of work-based contracts. Remaining performanceobligation estimates are subject to change and are affected byseveral factors, including terminations, changes in the scope ofcontracts, periodic revalidations, adjustment for revenue that has
not materialized and adjustments for currency fluctuations.
The aggregate value of performance obligations that arecompletely or partially unsatisfied as at March 31, 2023, otherthan those meeting the exclusion criteria mentioned above, is₹70,680 crore. Out of this, the Company expects to recognize
revenue of around 57.7% within the next one year and theremaining thereafter. The aggregate value of performanceobligations that are completely or partially unsatisfied as at
March 31, 2022 is ₹65,748 crore. The contracts can generally
be terminated by the customers and typically includes anenforceable termination penalty payable by them. Generally,customers have not terminated contracts without cause.

2.19 Other income, net
2.19.1 Other income

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 theexchange rate in effect on the date of the transaction.
Other Comprehensive Income, net of taxes includes translationdifferences on non-monetary financial assets measured atfair value at the reporting date, such as equities classified as
financial instruments and measured at fair value through othercomprehensive income (FVOCI).
Government grant
The Company recognizes government grants only when there isreasonable 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 arerecognized in the net profit in the Statement of Profit and Losson a systematic and rational basis over the useful life of theasset. Government grants related to revenue are recognized ona systematic basis in the net profit in the Statement of Profit andLoss over the periods necessary to match them with the related
costs which they intend to compensate.
Other income for the years ended March 31, 2023 andMarch 31, 2022 is as follows :(In ₹ crore)

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 recognizedwhen the right to receive payment is established.

Particulars

2.19.2 Foreign currency

Interest income on financial assets
carried at fair value through othercomprehensive income

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 Statementof Profit and Loss and reported within exchange gains / (losses)on translation of assets and liabilities, net, except when deferredin Other Comprehensive Income as qualifying cash flow hedges.
Non-monetary assets and non-monetary liabilities denominatedin a foreign currency and measured at fair value are translated at
the exchange rate prevalent at the date when the fair value wasdetermined. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at historicalcost are translated at the exchange rate prevalent at the date of
the transaction. The related revenue and expense are recognizedusing the same exchange rate.

270

Year ended March 31,
2023

2022

Tax-free bonds and government bonds

148

151

Deposit with bank and others

567

668

850

580

1

1

142

127

Interest income on financial assets
carried at amortized costNon-convertible debentures,commercial papers, certificates ofdeposit and government securities
Income on investments carriedat fair value through othercomprehensive income
Income on investments carried at fairvalue through profit or loss
Gain / (loss) on liquid mutual funds
and other investments
Dividend received from subsidiary

1,463

1,218

Exchange gains / (losses) on foreign
currency forward and options contracts

(531)

189

Exchange gains / (losses) on translationof other assets and liabilities

960

105

259
3,859

185
3,224

Miscellaneous income, net
Total other income
(1)

(1)

The Company received dividend from its wholly-owned subsidiaries(Refer to Note 2.24).

Infosys Integrated Annual Report 2022-23

2.20 Expenses

2.21 Employee benefits(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Salaries including bonus

60,19449,575Contribution to provident and other
funds

1,914

1,417

Share-based payments to employees(Refer to Note 2.12)

460

372

Staff welfare

196

300

62,764

51,664For own use

1,454

1,062

Third-party items bought for service
delivery to clients

3,760

1,923

5,214

2,985

Employee benefit expenses

Cost of software packages and others

Other expenses
Power and fuel

155

93

Brand and marketing

756

444

Short-term leases

22

12

Rates and taxes

217

205

Repairs and maintenance

922

824

Accounting policy
2.21.1 Gratuity and pensions
The Company provides for gratuity, a defined benefit retirement
plan ("the Gratuity Plan") covering eligible Indian employees ofInfosys. The Gratuity Plan provides a lumpsum 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 ofIndia 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 plansprovide for periodic payouts after retirement and / or a lumpsum
payment as set out in rules of each fund and includes deathand disability benefits. The defined benefit plans require
contributions, which are based on a percentage of salary thatvaries depending on the age of the respective employees.
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 theCompany to actuarial risks, such as longevity risk, interest raterisk and market risk.

Consumables

23

29

Insurance

140

135

Provision for post-sales client support
and others

121

77

Commission to non-whole time
directors

15

11

Impairment loss recognized /(reversed) under expected credit
loss model

183

117

Statutory audit fees

75

2.21.2 Provident fundTax matters––

Other services

–

–

437

397

283
3,281

141
2,490

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 Indianlaw. The remaining portion is contributed to the governmentadministered pension fund. The rate at which the annual interestis payable to the beneficiaries by the trust is being administeredby the Government. The Company has an obligation to
make good the shortfall, if any, between the return from theinvestments of the Trust and the notified interest rate.

Auditor's remuneration

Contributions towards Corporate
Social Responsibility *Others* During the year ended March 31, 2022, in accordance with the Companies(Corporate Social Responsibility Policy) Amendment Rules, 2021 (“theRules”), the Company transferred certain assets to its controlled subsidiary‘Infosys Green Forum’, a Company created under Section 8 of theCompanies Act, 2013.

Infosys Integrated Annual Report 2022-23

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 thedefined 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.

271

Standalone Financial Statements
2.21.3 Superannuation
Certain employees of Infosys are participants in a defined
contribution plan. The Company has no further obligations to theplan beyond its monthly contributions, which are periodicallycontributed to a trust fund, the corpus of which is invested with
the Life Insurance Corporation of India.
2.21.4 Compensated absences

determined by actuarial valuation performed by an independentactuary at each Balance Sheet date. This is done using projected
unit credit method on the additional amount expected tobe paid / availed as a result of the unused entitlement thathas accumulated at the Balance Sheet date. Expense on nonaccumulating compensated absences is recognized in the period
in which the absences occur.

The Company has a policy on compensated absences which
are both accumulating and non-accumulating in nature.
The expected cost of accumulating compensated absences isa. Gratuity and pension
The details of the defined benefit retirement plans and the amounts recognized in the standalone financial statements as at March 31,
2023 and March 31, 2022 are as follows :(In ₹ crore)

Particulars

Gratuity

PensionAs at March 31,

As at March 31,

2023

2022

2023

2022

1,467

1,382

610

541

Service cost

249

193

23

24

Interest expense

88

77

3

2

Past-service cost – Plan amendments

1

–

–

14

Transfer

3

3

–

–

(65)

69

(76)

2

Change in benefit obligations
Benefit obligations at the beginning

Remeasurements – Actuarial (gains) / losses
Employee contribution

–

–

18

20

(233)

(257)

(45)

(19)

14

–

58

26

1,524

1,467

591

610

1,477

1,391

534

434

Interest income

91

84

2

1

Transfer

4

3

–

–

Remeasurements – Return on plan assets excluding amounts
included in interest income

20

21

(46)

52

Employee contribution

–

–

18

20

Employer contribution

155

235

22

23

Benefits paid

(231)

(257)

(45)

(19)

Benefits paid
Translation difference
Benefit obligations at the end
Change in plan assets
Fair value of plan assets at the beginning

Translation difference

–

–

52

23

1,516

1,477

537

534

(8)

10

(54)

(76)

Defined benefit plan asset

9

10

–

–

Defined benefit plan liability

(17)

–

(54)

(76)

Fair value of plan assets at the end
Funded status

272

Infosys Integrated Annual Report 2022-23

The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Statement of Profit and Loss under employee
benefit expense, are as follows :(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

Service cost

249

193

23

24

Net interest on the net defined benefit liability / asset

(3)

(7)

1

1

Plan amendments

1
247

–
186

–
24

14
39

Net cost

The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Statement of Other Comprehensive Income are as follows :(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

(65)

69

(76)

2

(20)
(85)

(21)
48

46
(30)

(52)
(50)

Remeasurements of the net defined benefit liability / (asset)
Actuarial (gains) / losses(Return) / loss on plan assets, excluding amounts included in the netinterest on the net defined benefit liability / (asset)(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

–

–

–

(1)

(Gain) / loss from change in financial assumptions

(54)

(33)

(82)

(7)

(Gain) / loss from change in experience assumptions

(11)
(65)

102
69

6
(76)

10
2

(Gain) / loss from change in demographic assumptions

The weighted-average assumptions used to determine benefit obligations as at March 31, 2023 and March 31, 2022 are as follows :Particulars

Gratuity

PensionAs at March 31,
Discount rate

(1)

Weighted average rate of increase in compensation levels (2)Weighted average duration of defined benefit obligation

Infosys Integrated Annual Report 2022-23(3)

As at March 31,

2023

2022

2023

2022

7.1%

6.5%

1.8%- 3.4%

0.4%- 1.25%

6%

6%

1%-3%

1%-3%

5.9 years

5.9 years

12 years

14 years273

Standalone Financial Statements
The weighted-average assumptions used to determine net periodic benefit cost for the years ended March 31, 2023 andMarch 31, 2022 are as follows :(In %)

Particulars

Gratuity

PensionYear ended March 31,
Discount rate
Weighted-average rate of increase in compensation levels

Year ended March 31,

2023

2022

2023

2022

6.5

6.1

0.4-1.25

0.1-0.85

6

6

1-3

1-3

(1)

For domestic defined benefit plan in India, the market for high quality corporate bonds being not developed, the yield of government bonds is consideredas the discount rate. For most of our overseas defined benefit plan, given that the market for high quality corporate bonds is not developed, the government
bond rate adjusted for corporate spreads is used.

(2)

The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s past compensation revision
trends, inflation in respective markets and Management’s estimate of future salary increases.

(3)

Attrition rate considered is the Management’s estimate based on the past long-term trend of employee turnover in the Company. The tenure has been
considered taking into account the past long-term trend of employees' average remaining service life which reflects the average estimated term of postemployment benefit obligation.

For domestic defined benefit plan in India, assumptions
regarding future mortality experience are set in accordancewith the published statistics by the Life Insurance Corporationof India. For overseas defined benefit plan, the assumptions
regarding future mortality experience are set with regard to
the latest statistics in life expectancy, plan experience andother relevant data.

These defined benefit plans expose the Company to actuarial risk
which are set out below :•The Company assesses all the above assumptions with its projectedlong-term plans of growth and prevalent industry standards.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys Limited Employees' Gratuity Fund
Trust. Trustees administer contributions made to the trust.
The plan assets of the overseas defined benefit plan have been
primarily invested in insurer managed funds and the asset
allocation for plan assets is determined based on the investment
criteria prescribed under the relevant regulations applicableto pension funds and the insurer managers. The insurers'
investment are well diversified and also provide for guaranteedinterest rates arrangements.
Actual return on assets (including remeasurement) of the gratuity
plan for the years ended March 31, 2023 and March 31, 2022 were₹111 crore and ₹105 crore, respectively and for the pension plan
were (₹44) crore and ₹53 crore, respectively.
The contributions for gratuity are invested in a scheme with theLife Insurance Corporation of India as permitted by Indian law.
The details of major plan assets into various categories as at
March 31, 2023 and March 31, 2022 are as follows :Equity•The sensitivity of significant assumptions used for valuation ofdefined benefit obligation is as follows :(In %)

Particulars•

Interest rate risk : The present value of the defined benefit
plan liability is generally calculated using a discount rate
determined with reference to government bond yields andin certain overseas jurisdictions, it is calculated in reference
to government bond yield adjusted for a corporate spread.
If bond yields fall, the defined benefit obligation will tend toincrease.
Life expectancy and investment risk : The pension fundoffers the choice between a lifelong pension and a cash
lumpsum upon retirement. The pension fund has defined
rates for converting the lumpsum to a pension and there is
the risk that the members live longer than implied by theseconversion rates and that the pension assets don’t achieve
the investment return implied by these conversion rates.
Asset volatility : A proportion of the pension fund is held in
equities, which is expected to outperform corporate bondsin the long term but give exposure to volatility and risk in the
short term. The pension fund board of insurer is responsible
for the investment strategy and equity allocation is justified
given the long-term investment horizon of the pension fundand the objective to provide a reasonable long term returnon members’ account balances.

As at March 31,
2023

2022

34

34

(In ₹ crore)

Impact from

As at March 31, 2023
Gratuity

Pension

1% point
increase /decrease

0.5% point
increase /decrease

Bonds

32

32

Real estate / property

26

26

Discount rate

84

24

Weighted average rate of increase incompensation level76

3

Cash and cash equivalents

1

1

Other

7

7

274

Infosys Integrated Annual Report 2022-23

Sensitivity for significant actuarial assumptions is computedby varying one actuarial assumption used for the valuation,
keeping all other actuarial assumptions constant.
In practice, this is not probable, and changes in some of theassumptions may be correlated.

Particulars

2023

2022

Fair value of plan assets at the
beginning

9,058

8,140

Interest income

609

507

(In ₹ crore)

Remeasurements – Return on plan
assets excluding amounts included ininterest income

(186)

18

Gratuity

Pension

Employer contribution

837

666

211

36

Employee contribution

1,689

1,153

35

Benefits paid

(1,823)(1,426)40

Fair value of plan assets at the end

10,1849,058

39

Net liability

(343)

(246)

Change in plan assets

The Company expects to contribute ₹195 crore to gratuity and₹25 crore to pension during the fiscal 2024.
Maturity profile of defined benefit obligation is as follows :Particulars
Within 1 year
1-2 years
2-3 years
3-4 years

As at March 31,

222
229
265

4-5 years346

42

5-10 years

1,807

203

b. Superannuation
The Company contributed ₹468 crore and ₹342 crore to theSuperannuation trust during the years ended March 31, 2023 andMarch 31, 2022 respectively, and the same has been recognizedin the Statement of Profit and Loss account under the head
employee benefit expense.

Amount for the years ended March 31, 2023 and March 31, 2022
recognized in the Statement of Other Comprehensive
Income is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Remeasurements of the net defined
benefit liability / (asset)c. Provident fund

Actuarial (gains) / losses

(82)

118

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 determinedannually, predominantly considering the social rather thaneconomic factors. The actuary has provided a valuation forprovident fund liabilities on the basis of guidance issued by
Actuarial Society of India.

(Return) / loss on plan assets excluding
amounts included in the net interest on
the net defined benefit liability / (asset)

186

(18)

104

100

The funded status of the defined benefit provident fund plan ofInfosys limited and the amounts recognized in the Company's
financial statements as at March 31, 2023 and March 31,
2022 is as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

9,304

8,287

Change in benefit obligations
Benefit obligations at the beginning
Service cost

814

656

1,689

1,153

Interest expense

625

516

Actuarial (gains) / loss

(82)

118

Benefits paid

(1,823)(1,426)

Benefit obligations at the end

10,527

9,304

Employee contribution

Infosys Integrated Annual Report 2022-23

The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows :Particulars

As at March 31,
2023

2022

Government of India (GOI) bond yield (1)

7.10%

6.50%

Expected rate of return on plan assets

8.15%

7.70%

Remaining term to maturity of portfolio

6 years

6 years

Expected guaranteed interest rate

8.15%

8.10%

(1)

In India, the market for high quality corporate bonds being notdeveloped, the yield of government bonds is considered as the discountrate. The tenure has been considered taking into account the past longterm trend of employees’ average remaining service life which reflects theaverage estimated term of the post-employment benefit obligations.

275

Standalone Financial Statements
2.22 Reconciliation of basic and diluted shares used incomputing earnings per equity share

The breakup of the plan assets into various categories as at
March 31, 2023 and March 31, 2022 is as follows :(In %)

Particulars

As at March 31,
2023

2022

Central and State government bonds

60

57

Public sector undertakings and private
sector bonds

33

37

Others7

6

The asset allocation for plan assets is determined based on theinvestment criteria prescribed under the relevant regulations.
The actuarial valuation of PF liability exposes the Company tointerest rate risk. The defined benefit obligation calculated uses a
discount rate based on government bonds. If bond yields fall, thedefined benefit obligation will tend to increase.
As at March 31, 2023, the defined benefit obligation would
be affected by approximately ₹48 crore and ₹97 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Company contributed ₹1,053 crore and ₹768 crore to theprovident fund during the years ended March 31, 2023 andMarch 31, 2022, respectively. The same has been recognized in
the net profit in the Statement of Profit and Loss under the head,
employee benefit expense.
The provident plans are applicable only to employees drawing asalary in Indian Rupees.

Accounting policy
Basic earnings per equity share is computed by dividing the net
profit attributable to the equity holders of the Company by theweighted 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 theCompany by the weighted average number of equity sharesconsidered for deriving basic earnings per equity share and also
the weighted average number of equity shares that could havebeen issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for theproceeds 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 forany share splits and bonus shares issues, for changes effectedprior to the approval of the financial statements by the Board.
The reconciliation of the equity shares used in the computationof basic and diluted earnings per equity share is as follows :Particulars

Year ended March 31,

Employee benefits cost include :Basic earnings per equity share– weighted average number of
equity shares outstanding

Particulars

Effect of dilutive common
equivalent shares – shareoptions outstanding(In ₹ crore)

Salaries and bonus (1)Defined contribution plans
Defined benefit plans(1)

Year ended March 31,
2023

2022

60,97350,338

468

342

1,323
62,764984
51,664

Includes employee stock compensation expense of ₹460 crore and ₹372
crore for the years ended March 31, 2023 and March 31, 2022, respectively(Refer to Note 2.12).

276

Diluted earnings per equity
share – weighted average
number of equity shares andcommon equivalent shares
outstanding

2023

2022

419,38,13,881

422,43,39,562

44,20,497

52,06,766

419,82,34,378 422,95,46,328

For the years ended March 31, 2023 and March 31, 2022, there
were 271 and Nil options to purchase equity shares which had ananti-dilutive effect.

Infosys Integrated Annual Report 2022-23

2.23 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 March 31,
2023

2022

4,316

4,245

824

1,092

8

11

Contingent liabilities :Claims against the Company, not acknowledged as debts (1)[Amount paid to statutory authorities ₹6,115 crore (₹5,617 crore)]
Commitments :Estimated amount of contracts remaining to be executed on capital contracts and not provided for(net of advances and deposits) (2)Other commitments ** Uncalled capital pertaining to investments(1)

As at March 31, 2023 and March 31, 2022, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹3,953 croreand ₹3,898 crore, respectively.
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 respectof employment of new employees under Section 80JJAA, disallowance of expenditure towards software being held as capital in nature, and payments made to
Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Income tax authorities and the Management including
its tax advisors expect that its position will likely be upheld on ultimate resolution, and will not have a material adverse effect on the Company's financial
position and results of operations.
Amount paid to statutory authorities against the tax claims amounted to ₹6,105 crore and ₹5,607 crore as at March 31, 2023 and March 31, 2022, respectively.

(2)

Capital contracts primarily comprise 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 andadverse effect on the Company’s results of operations or financial condition.

2.24 Related party transactions
List of related parties(In %)Name of subsidiaries

Country

2023

2022

Infosys Technologies (China) Co. Limited (Infosys China) (1)

China

100

100

Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)

Mexico100

100

Sweden

100

100

(1)

Infosys Technologies (Sweden) AB (Infosys Sweden) (1)Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)

Holdings as at March 31,

China

100

100

Infosys Nova Holdings LLC. (Infosys Nova) (1)

US

100

100

EdgeVerve Systems Limited (EdgeVerve)

India

100

100

Austria

100

100

India

100

100

Chile

100

100

(1)

Infosys Austria GmbH (1)Skava Systems Private Limited (Skava Systems)
Infosys Chile SpA (1)Infosys Arabia Limited(2)(26)

Infosys Consulting Ltda.(1)Infosys Luxembourg S.a.r.l (1)Infosys Americas Inc. (Infosys Americas)

Infosys Integrated Annual Report 2022-23(1)(26)(1)(26)(1)

Saudi Arabia

70

70

Brazil100

100

Luxembourg

100

100

US

100

100
277

Standalone Financial Statements
Name of subsidiaries

Country

Infosys Public Services, Inc. USA (Infosys Public Services) (1)US

Infosys Canada Public Services Inc

Holdings as at March 31,
2023

2022

100

100

Canada––Infosys BPM Limited (1)(43)

India

100

100

Infosys (Czech Republic) Limited s.r.o. (3)Czech Republic

100

100

Infosys Poland Sp z.o.o (3)Poland

100

100

US

100

100

Australia

100

100

Infosys McCamish Systems LLC(19)(35)(3)

Portland Group Pty Ltd (3)Infosys BPO Americas LLC.

US

100

100

Infosys Consulting Holding AG (Infosys Lodestone) (1)

Switzerland

100

100

Infosys Management Consulting Pty Limited

Australia

100

100

Switzerland

100

100

(3)

(4)

Infosys Consulting AG (4)Infosys Consulting GmbHGermany

100

100

Infosys Consulting S.R.L.(1)Romania100

100

Infosys Consulting SAS

France

100

100

–

–

(4)

(4)

Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.) (4)(34)

Czech Republic

Infosys Consulting (Shanghai) Co., Ltd.

China

–

–

Infy Consulting Company Ltd (4)

UK

100

100

Infy Consulting B.V.(4)The Netherlands

100

100

Infosys Consulting S.R.L.

(4)(30)Argentina

100

100

Infosys Consulting (Belgium) NV (4)Belgium

100

100

Panaya Inc. (Panaya)

US

100

100

Israel

100

100

(45)

(1)

Panaya Ltd. (6)Infosys Financial Services GmbH. (formerly Panaya GmbH)Germany

100

100

Brilliant Basics Holdings Limited (Brilliant Basics) (1)(26)

UK

100

100

Brilliant Basics Limited

(54)

UK

100

100

Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (1)Singapore

100

100

Infosys Middle East FZ LLC

Dubai

100

100

Finland100

100(7)(26)(8)

Fluido Oy (8)Fluido Sweden AB (Extero)

Sweden100

100

Fluido Norway A/S (11)Norway100

100

Fluido Denmark A/S(11)

Denmark

100

100

Fluido Slovakia s.r.o (11)Slovakia

100

100

Infosys Compaz Pte. Ltd(11)

Singapore60

60

Infosys South Africa Pty Ltd (8)South Africa

100

100

WongDoody Holding Company Inc. (WongDoody) (1)(36)

US

–

–

WDW Communications, Inc

(9)

US

–

–

WongDoody, Inc (10)(38)

US

100

100

HIPUS Co., Ltd (9)

Japan

81

81

Stater N.V. (9)The Netherlands

7575Stater Nederland B.V. (12)The Netherlands

7575Stater XXL B.V. (12)The Netherlands

75

75

HypoCasso B.V.

(10)(37)

The Netherlands

7575Stater Participations B.V. (12)The Netherlands

7575Stater Belgium N.V./S.A.

Belgium

75

75

Germany

75

75

(12)

Stater Gmbh (12)(28)
278

(13)

Infosys Integrated Annual Report 2022-23

Name of subsidiaries

Country

Outbox systems Inc. dba Simplus (US) (15)US

Simplus North America Inc.

Holdings as at March 31,
2023

2022

100

100

Canada––Simplus ANZ Pty Ltd (16)Australia

100

100

Simplus Australia Pty Ltd (17)Australia

100

100

Sqware Peg Digital Pty Ltd (18)(31)

Australia––

Simplus Philippines, Inc.

Philippines(16)(27)(16)

Simplus Europe, Ltd. (16)(29)
Infosys Fluido UK, Ltd. (formerly Simplus UK, Ltd)

100

100

UK

–

–

UK

100

100

Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd) (20)

Ireland100

100

Infosys Limited Bulgaria EOOD (1)Bulgaria

100

100

Kaleidoscope Animations, Inc.

(15)

US

100

100

Kaleidoscope Prototyping LLC (22)

US

100

100

GuideVision s.r.o.

(11)

Czech Republic

100

100

GuideVision Deutschland GmbH (21)Germany

100

100

GuideVision Suomi Oy(14)

Finland

100

100

GuideVision Magyarország Kft (21)

Hungary

100

100

GuideVision Polska Sp. z.o.o

Poland

100

100

UK

100

100

(21)

(21)

GuideVision UK Ltd (21)(26)
Blue Acorn iCi Inc (formerly Beringer Commerce Inc)

US

100

100

Beringer Capital Digital Group Inc (15)(41)

US

–

–

Mediotype LLC

(15)

US

–

–

Beringer Commerce Holdings LLC (23)(41)

US

–

–

SureSource LLC(24)(39)

US––Blue Acorn LLC (24)(39)

US

–

–

(23)(41)

Simply Commerce LLC

US

–

–

iCiDIGITAL LLC (25)(40)

US

–

–

Infosys BPM UK Limited (3)

UK

100

–

Turkey100

100Germany

100

100Germany

100

100

India

100

100

Malaysia

100

100

Qatar

100

–

Germany

100–

Germany

100–(24)(39)

Infosys Turkey Bilgi Teknolojileri Limited Sirketi(1)

Infosys Germany Holding Gmbh (1)Infosys Automotive and Mobility GmbH & Co. KG(1)Infosys Green Forum (1)(32)
Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.)
Infosys Business Solutions LLC (1)(42)
Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”))
oddity GmbH (46)oddity (Shanghai) Co., Ltd.

(44)

(33)

China

100

–

oddity Limited (Taipei) (47)

Taiwan100–

oddity space GmbH(46)

Germany

100–

oddity jungle GmbH (46)Germany

100–

oddity code GmbH(47)

Germany

100–

oddity code d.o.o (48)

Serbia100–

oddity waves GmbH (46)Germany

100

–

(46)

oddity group services GmbHGermany

100–

Infosys Public Services Canada Inc.(19)(5)Canada100–

BASE life science AG

Switzerland

100

–

(46)

(50)

Infosys Integrated Annual Report 2022-23

279

Standalone Financial Statements
Name of subsidiaries

Country

Holdings as at March 31,
2023

2022

BASE life science GmbH (50)Germany

100–

BASE life science A/S

Denmark

100–

BASE life science S.A.S (50)France100–

BASE life science Ltd.

(49)

UK

100

–

BASE life science S.r.l. (50)

Italy

100

–

Innovisor Inc.

US

100

–

BASE life science Inc. (50)

US

100

–

BASE life science S.L.

(50)

(50)

Spain

100

–

Panaya Germany GmbH (6)(52)

Germany

100–

Infosys Norway (8)(53)

Norway100–(50)(51)(1)

Wholly-owned subsidiary of Infosys Limited(34)

Liquidated effective December 16, 2021

(2)

Majority-owned and controlled subsidiary of Infosys Limited(35)

Liquidated effective November 23, 2021

(3)

Wholly-owned subsidiary of Infosys BPM Limited

(36)

(4)

Wholly-owned subsidiary of Infosys Consulting Holding AG

Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
Inc, effective December 31, 2021

(5)

Incorporated on July 8, 2022

(37)

(6)

Wholly-owned subsidiary of Panaya Inc.

Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021

(7)

Wholly-owned subsidiary of Brilliant Basics Holding Limited.

(8)

Wholly-owned subsidiary of Infosys Singapore Pte. Ltd.
(formerly Infosys Consulting Pte. Ltd.)(38)

Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021

(39)

Merged with Beringer Commerce Holdings LLC, effective January 1, 2022

(40)

Merged with Beringer Capital Digital Group Inc, effective January 1, 2022

(41)

Merged with Blue Acorn iCi Inc, effective January 1, 2022

(9)

Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd.
(formerly Infosys Consulting Pte. Ltd.)(42)

Incorporated on February 20, 2022

(10)

Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody)(43)

On March 17, 2022, Infosys Limited acquired non-controlling interest of
0.01% of the voting interests in Infosys BPM Limited.

(11)

Wholly-owned subsidiary of Fluido Oy

(44)

(12)

Wholly-owned subsidiary of Stater N.V(13)

Majority-owned and controlled subsidiary of Stater Participations B.V.

On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting
Pte. Ltd.), a wholly-owned subsidiary of Infosys Limited acquired 100%of voting interests in Infosys Germany GmbH (formerly Kristall 247. GmbH(“Kristall”)).

(45)

Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiaryof Infosys Consulting Holding AG) became the majority-owned andcontrolled subsidiary of Infosys Limited with effect from April 1, 2022

(46)

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH(“Kristall”)) (a wholly-owned subsidiary of Infosys Singapore Pte. Ltd(formerly Infosys Consulting Pte. Ltd.) acquired 100% of voting interests in
oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity
group services GmbH, oddity code GmbH and oddity GmbH.

(14)

Wholly-owned subsidiary of Infy Consulting Company Limited(15)

Wholly-owned subsidiary of Infosys Nova Holdings LLC(16)

Wholly-owned subsidiary of Outbox Systems Inc.

(17)

Wholly-owned subsidiary of Simplus ANZ Pty Ltd(18)

Wholly-owned subsidiary of Simplus Australia Pty Ltd(19)

Wholly-owned subsidiary of Infosys Public Services, Inc.

(20)

Wholly-owned subsidiary of Infosys Fluido UK, Ltd.
(formerly Simplus UK, Ltd)

(47)

Wholly-owned subsidiary of oddity GmbH

(21)

Wholly-owned subsidiary of GuideVision s.r.o.

(48)

Wholly-owned subsidiary of oddity code GmbH.

(22)

Wholly-owned subsidiary of Kaleidoscope Animations, Inc.

(49)

(23)

Wholly-owned subsidiary of Blue Acorn iCi Inc(24)

Wholly-owned subsidiary of Beringer Commerce Holdings LLC

On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.) (a wholly-owned subsidiary of Infosys Limited)acquired 100% of voting interests in BASE life science A/S.

(25)

Wholly-owned subsidiary of Beringer Capital Digital Group Inc.

(50)

Wholly-owned subsidiary of BASE life science A/S(26)

Under liquidation(27)

Liquidated effective April 27,2021(28)

Incorporated on August 4, 2021

(29)

Liquidated effective July 20, 2021

(30)

Liquidated effective September 1, 2021

(31)

Liquidated effective September 2, 2021

(32)

Incorporated on August 31, 2021

(33)

On December 14, 2021, Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.), a wholly-owned subsidiary of Infosys Limited
acquired 100% of voting interests in Infosys (Malaysia) SDN. BHD. (formerly
Global Enterprise International (Malaysia) Sdn. Bhd.)

280

(51)

Incorporated on September 6, 2022

(52)

Incorporated effective December 15, 2022

(53)

Incorporated effective February 7, 2023.

(54)

Infosys Financial Services GmbH. (formerly Panaya GmbH) became awholly-owned subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.) with effect from February 23, 2023.

Infosys has provided guarantee for performance of certain
contracts entered into by its subsidiaries.

Infosys Integrated Annual Report 2022-23

List of other related party
Particulars

Country

Nature of relationshipInfosys Limited Employees' Gratuity Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys Limited Employees' Provident Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys Limited Employees' Superannuation Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys Employees Welfare Trust

India

Controlled trust

Infosys Employee Benefits Trust

India

Controlled trust

Infosys Science Foundation

India

Controlled trust

Infosys Expanded Stock Ownership Trust

India

Controlled trust

Infosys Foundation *India

Trust jointly controlled by KMP* Effective January 1, 2022
Refer to Note 2.21 for information on transactions with post-employment benefit plans mentioned above.

List of key management personnel
Whole-time directors••

Salil Parekh , Chief Executive Officer and Managing Director
U.B. Pravin Rao (retired as a Chief Operating Officer andWhole-time director effective December 12, 2021)

Non-whole-time directors
•
•
•
•
•
•
•
•

Nandan M. Nilekani
D. Sundaram (appointed as lead independent director
effective March 23, 2023)
Kiran Mazumdar-Shaw (retired as lead independent director
effective March 22, 2023)
Micheal Gibbs
Uri Levine
Bobby Parikh
Chitra Nayak
Govind Iyer (appointed as an independent director effective
January 12, 2023)

Executive officers
Nilanjan Roy, Chief Financial Officer
Inderpreet Sawhney, Group General Counsel andChief Compliance Officer
Shaji Mathew (appointed as Group Head - Human Resources
effective March 22, 2023)
Krishnamurthy Shankar (retired as Group Head - Human
Resources effective March 21, 2023)
Mohit Joshi (resigned as President effective March 11, 2023
and will be on leave till his last date with the company which
will be June 9, 2023)
Ravi Kumar S (resigned as President effective October 11, 2022)
Company Secretary
A. G. S. Manikantha

Infosys Integrated Annual Report 2022-23

The details of amounts due to or due from related parties as at
March 31, 2023 and March 31, 2022 are as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

BASE life science A/S

1–

Infosys China

1

6

Infosys Mexico

2

1

Infosys BPM Limited

10

7

Infosys BPO Americas LLC–

12

Trade receivables

Infy Consulting Company Limited

11

3

Infosys Public Services

90

95

Infosys Shanghai–

1

Infosys Sweden

6

16

Fluido Oy

11

Simplus Australia Pty Ltd

1–

Infosys McCamish Systems LLC

66

76

Panaya Ltd

2

1

Infosys Compaz Pte Ltd

61

8Stater Nederland B.V.

7–

Outbox systems Inc. dba Simplus (US)1–

Infosys Luxembourg S.a.r.l

47

28

Infosys Chile SPA

1

2

Infosys South Africa Pty Ltd

5–

Infosys Automotive and Mobility GmbH& Co. KG

283–

Infosys Middle East FZ LLC

15

11

611

268

43

–

43

–

Loans
Infosys Turkey Bilgi
Teknolojileri Limited Sirketi (1)281Standalone Financial Statements
Particulars

As at March 31,
2023

Particulars

2022

Prepaid expense and other assets
Panaya Ltd
GuideVision, s.r.o.
Infosys Green Forum

2023

2022

107

64

4

4

Unbilled revenues
193

203

1

1

Infosys Consulting LtdaBlue Acorn iCi Inc–

1

Portland Group Pty Ltd

2

2

Infosys Automotive and Mobility GmbH& Co. KG–

201

Infosys Austria GmbH2

2

Infosys (Czech Republic) Limited s.r.o.

–2

Infy Consulting Company Limited

5

4

Infosys Consulting S.R.L.(Romania)

2

1

Infosys Sweden

1

1

Infosys China

10

9Infosys Turkey Bilgi Teknolojileri Limited
Sirketi

3

2

Infosys Singapore Pte. Limited

6

5

Infosys McCamish Systems LLC

4

–

198

204

Infosys BPM Limited

13

7

Infosys Consulting GmbH3

3

Infosys China

20

12

Infosys Shanghai

4

3Infy Consulting Company Limited

12

7

Infosys Management Consulting Pty Ltd

1

1

Infosys Consulting AG

3

2

Infosys Consulting Ltda

1

1

Infy Consulting B.V.

2

2

Fluido Oy

1–Panaya Ltd

1

1

Infosys McCamish Systems LLC

32

6

Infosys Singapore Pte. Ltd

1

1

925

156

Infosys Poland Sp. Z.o.o

3

2

Fluido Denmark A/S

1

1

Infosys Consulting S.R.L. (Romania)

1

1

Infosys Green Forum–

2

Infosys Consulting (Belgium) NV

3

3

WongDoody, Inc3

3

Infosys Public Services

6

4

Simplus Philippines, Inc.

1

1

Outbox systems Inc. dba Simplus (US)1–

Infosys Luxembourg S.a.r.l2

1

Infosys Business Solutions LLC

1–

Infosys Compaz PTE Ltd

1

Kaleidoscope Animations, Inc.

Other financial assets

Infosys Automotive and Mobility GmbH& Co. KG

As at March 31,

EdgeVerve

137

115

Infosys Mexico

3

2

Infosys Poland sp. z o o2–Stater Nederland B.V.

6

4

290

419

Trade payables
Infosys China

15

28

Infosys BPM Limited

136

152

Infosys (Czech Republic) Limited s.r.o.

26

18

Infosys Mexico

24

16

Infosys Sweden

57

69

Infosys Shanghai

13

23

Infosys Management Consulting Pty Ltd

19

14

Infosys Singapore Pte. Ltd.

15

7

Infy Consulting Company Limited

149

118

–

Infosys (Malaysia) SDN. BHD. (formerly
Global Enterprise International (Malaysia)
Sdn. Bhd.)

5

–

1

–

Panaya Ltd

14

13

Portland Group Pty Ltd

1–

Infosys Public Services

11

GuideVision, s.r.o.

1–

Portland Group Pty Ltd

28

1

Infosys (Czech Republic) Limited s.r.o.

1–

Infosys Chile SpA

4

8

Infosys Sweden

1–

Infosys Compaz Pte Ltd

2

3

Infosys Middle East FZ LLC

1–

Infosys Middle East FZ LLC

2

4HIPUS Co., Ltd

1–

Infosys Poland Sp. Z.o.o

24

14

EdgeVerve

2–

Infosys Consulting S.R.L. (Romania)

19

17

1,051

220

Fluido Oy

612

oddity jungle GmbH

1–

Fluido Sweden AB

6

14

282

Infosys Integrated Annual Report 2022-23

Particulars(In ₹ crore)

As at March 31,
2023

2022

EdgeVerve

1

6

WongDoody, Inc

3

2

Fluido Denmark A/S

2

7

Infosys Fluido UK Ltd

3

3

Infosys Automotive and Mobility GmbH& Co. KG

61

57

Infosys Limited Bulgaria EOOD

4

1

oddity Limited(Taipei)

1–

Infosys Consulting Ltda

11

5

BASE life science A/S

1

–

653

613

Infosys BPM Limited

31

33

Infosys Consulting AG

1–

Other financial liabilities

Infosys Mexico

1

1

Infosys China

64Particulars

Maximum amountoutstanding during theYear ended March 31,
2023

2022

–

21

Loans and advances in the nature ofloans given to subsidiaries:
Infosys China
Infosys Shanghai–

76

Infosys Singapore Pte. Ltd.

397–

Infosys Turkey Bilgi Teknolojileri
Limited Sirketi

43–

The details of the related parties transactions entered intoby the Company for the years ended March 31, 2023 andMarch 31, 2022 are as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Infosys Business Solutions LLC

8–

Infosys Consulting S.R.L(Argentina)

2–

Infosys Shanghai

32

Capital transactions :GuideVision Suomi Oy

1–

Financing transactions

Outbox systems Inc. dba Simplus (US)33

17

GuideVision, s.r.o.

85Simplus Australia Pty Ltd

75

Simplus Philippines, Inc.

3

3

GuideVision Polska SP. Z O.O.

1

1

Infosys Turkey Bilgi Teknolojileri
Limited Sirketi

7–

Kaleidoscope Animations, Inc.

6

3

Infosys Green Forum–

1

WongDoody, Inc82

53

Infosys Public Services

10

5

Infosys Automotive and MobilityGmbH & Co. KG–

15

GuideVision Magyarország Kft.

1

1

Infosys Shanghai–

110

Infosys Austria GmbH–1

Infosys BPM Limited–

2

Infosys Singapore Pte. Limited

1

1

17

128

Infosys Consulting GmbH–1

Infosys Automotive and Mobility GmbH& Co. KG

155

105

Infosys McCamish Systems LLC–

16

Infosys Green Forum

6

6

Infosys Consulting (Belgium) NV

4

3

Blue Acorn iCi Inc

46

48

GuideVision Deutschland GmbH1

1

Infosys Poland Sp. Z.o.o–

1

Infosys Middle East FZ LLC

1–

Infosys Luxembourg S.a.r.l

8–

Infosys (Czech Republic) Limited s.r.o.

6

–

422

316

30

7

30

7

Accrued expenses
Infosys BPM Limited(1)

EquityPreference share
Infosys Singapore Pte. Ltd.

1,513

–

1,513

–

Debentures (net of repayment)
EdgeVerve

–

(536)

–

(536)

389

–

Loans given
Infosys Singapore Pte. Ltd.
Infosys Turkey Bilgi
Teknolojileri Limited Sirketi

38

–

427

–

Loans repaid
Infosys Shanghai
Infosys Singapore Pte. Ltd.

–

73

393

–

393

73

Interest at the rate of 7.45% per annum and term of loan is one year.

Infosys Integrated Annual Report 2022-23

283

Standalone Financial Statements
Particulars

Year ended March 31,
2023

Particulars

Year ended March 31,
2023

2022

Revenue transactions :Infosys Austria GmbH–

1

Purchase of services

Infosys Limited Bulgaria EOOD

37

5

WongDoody, Inc

Infosys China

125

Infosys Management Consulting
Pty Ltd

211

187

Infy Consulting Company Limited

759

265

Infosys Luxembourg S.à.r.l

8–

Infosys (Malaysia) SDN. BHD.
(formerly Global EnterpriseInternational (Malaysia) Sdn. Bhd.)

19

–

1,608

1,251

Infosys Singapore Pte. Ltd.

161

73

Portland Group Pty Ltd

92

21

oddity space GmbH

4–

Infosys (Czech Republic) Limited
s.r.o.

oddity code d.o.o

1

–

294

165

oddity jungle GmbH1–

Infosys BPM Limited

2,101

2,001

oddity Limited(Taipei)

1–

Infosys Sweden

56

49

Fluido Norway A/S

1–

Infosys Shanghai

149

116

Infosys Mexico

239

149

Infosys Consulting S.R.L.
(Argentina)

1–

EdgeVerve

20

15

7,875

5,717

Brilliant Basics Limited–

1

Infosys BPM Limited

36

3

WongDoody, Inc63

24

Infosys Green Forum

36

4

Infosys China

1–

Infosys (Czech Republic) Limited
s.r.o.

6–

Infosys Mexico

47

Outbox systems Inc. dba Simplus
(US)

2

–

Infosys Consulting AG

3

–

8

–

–

23

159

62

Infosys Public Services

284

183

2022

6

11

Panaya Ltd

144

140

Infosys Poland Sp. Z.o.o

209

124

Infosys Consulting S.R.L.
(Romania)

244

234

Infosys Compaz Pte Ltd

25

20

Infosys Consulting Ltda

116

60

BASE life science A/S

2–

Kaleidoscope Animations, Inc.

50

16

Brilliant Basics Limited–

30

Infosys Chile SpA

34

17

Infosys Middle East FZ LLC

51

51

Fluido Oy

69

42

Fluido Sweden AB

58

52

Fluido Denmark A/S

25

15

Infosys McCamish Systems LLC

10

3

Infosys Automotive and MobilityGmbH & Co.KG

GuideVision, s.r.o.

67

28

WDW Communications, Inc.

GuideVision Polska SP. Z O.O.

8

6

HIPUS Co., Ltd–

2

Simplus Australia Pty Ltd

67

28

Simplus Philippines, Inc.

26

11

Purchase of shared services
including facilities and personnelInterest income
Infosys Turkey Bilgi Teknolojileri
Limited Sirketi

2–

Infosys Shanghai

–

1

3

–

Outbox systems Inc. dba Simplus
(US)

272

177

Infosys Singapore Pte. Ltd.

Infosys Fluido UK Ltd

39

17

EdgeVerve

WDW Communications, Inc.

–

24

iCiDIGITAL LLC–

52

Blue Acorn LLC–

19Blue Acorn iCi Inc

384

47

Mediotype LLC–

2

Infosys Automotive and MobilityGmbH & Co. KG–

57

GuideVision Deutschland GmbH

3

1

GuideVision Suomi Oy

7

3

GuideVision Magyarország Kft.

13

5

–

2

5

3

Guarantee income
Infosys Singapore Pte. Ltd.

1

1

1

1

–

68

Dividend income
Brilliant Basics Holdings Ltd
EdgeVerve

276–

Infosys BPM Limited

1,187

1,150

1,463

1,218

Infosys Integrated Annual Report 2022-23

Particulars

Year ended March 31,
2023

Particulars

2022

Sale of services

Year ended March 31,
2023

2022

Infosys Luxembourg S.a.r.l

4

3

Infosys China

24

33

Infosys Shanghai

1–

Infosys Mexico

22

21

Portland Group Pty Limited

1–

Infosys Austria GmbH–2

Infosys Poland Sp. z.o.o.

1–

Infy Consulting Company Limited

53

28

WongDoody, Inc.

2–

Infosys BPO Americas LLC
Infosys BPM Limited
Fluido Oy
Infosys Luxembourg S.a.r.l–

18

Fluido Oy

1

–

113

95

–

1

Outbox systems Inc. dba Simplus
(US)

2

–

140

89

Infosys BPO Americas LLC

1

–

1

–

Infosys Middle East FZ LLC

26

24

Infosys Consulting AG

Infosys McCamish Systems LLC

458

493

Infy Consulting B.V.

2

–

61

Infosys Consulting SAS

1

–

4

4

Infosys Consulting GmbH

1

–

822

596

HIPUS Co. Limited

1

–

615

Kaleidoscope Animations, Inc

1

–

1

–

Infosys Sweden
Infosys Shanghai
EdgeVerve
Infosys Public Services

70

778
1

2

Blue Acorn iCi Inc.

Infosys Compaz Pte Ltd

141

81

Infosys Consulting Ltda

3

6

Infosys Automotive and MobilityGmbH & Co.KG (2)778–

Simplus Australia Pty Ltd

4–

Infosys Business Solutions LLC

1–

Infosys Chile SpA

8

2

Infosys Turkey Bilgi Teknolojileri
Limited Sirketi–

2

Blue Acorn LLC–

1Outbox System,Inc. dba Simplus

Infosys Green Forum

6

1

Infosys BPM Limited (1)

88

24

976

131

321

–

321

–

Any other transaction
Infosys Foundation

Infosys (Czech Republic) Limited
s.r.o.

–

2

Infosys Automotive and MobilityGmbH & Co. KG

70

201

(1)

Includes sale of fixed assets of ₹2 crore

3

1

(2)

Includes amounts netted off against respective expenses

Mediotype LLC–

1Portland Group Pty Ltd

1

3Blue Acorn iCi Inc

Infosys Consulting S.R.L.(Romania)

1

1

ICI DIGITAL LLC–

1

Infosys Singapore Pte. Ltd.

–

5BASE life science A/S

1–

Infosys Poland Sp. Z.o.o

2–

Infosys Business Solutions LLC

1–

Infosys South Africa Pty Ltd

5–Stater Nederland B.V.

45

47

2,796

2,436

EdgeVerve

28

100

Panaya Ltd

7

3

Infy Consulting Company Limited

12–

Infosys Public Services, Inc.

3–

Infosys McCamish System LLC

25–

Infosys China

7–

Refer to Note 2.5.1 for business transfer with wholly-owned
subsidiaries

The Company’s related party transactions during the years ended
March 31, 2023 and March 31, 2022 and outstanding balances
as at March 31, 2023 and March 31, 2022 are with its subsidiaries
with whom the Company generally enters into transactions,which are at arms length and in the ordinary course of business.

Sale of shared services including
facilities and personnel

Infosys Integrated Annual Report 2022-23

285

Standalone Financial Statements
Transactions with key management personnel
The table below describes the compensation to key management personnel which comprise directors and executive officers :(In ₹ crore)

Particulars

Year ended March 31,

Salaries and other short term employee benefits to whole-time directors and executive officers

2023

2022

111

134

Commission and other benefits to non-executive / independent directors

16

11

Total

127

145

(1)(2)(1)

Total employee stock compensation expense for the years ended March 31, 2023 and March 31, 2022 includes a charge of ₹49 crore and ₹65 crore, respectively,
towards key management personnel (Refer to Note 2.12). Stock compensation expense for the year ended March 31, 2023 includes reversal of expense on
account of resignation / retirement of key management personnel.

(2)

Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole.

OthersThe details of date and amount of fund invested in intermediary during the year ended March 31, 2023 are as follows :(In ₹ crore)

Name of the intermediary

Registered address of theintermediary

Relationship with theintermediary

Date of investment

Amount ofinvestment * (in ₹crore)

Infosys Singapore Pte. Ltd

9 Temasek Boulevard # 43-01 Suntec
Tower Two Singapore (038989)

Wholly-owned subsidiary

August 24, 2022
December 13, 2022

685
330

* During the year ended March 31, 2023, the Company has invested in redeemable preference share in Infosys Singapore Pte. Ltd-

for funding the Base life science A/S acquisition.

-

to provide loan to Infosys Automotive and Mobility GmbH & Co. KG.

The details of date and amount of fund further invested by intermediary to ultimate beneficiaries during the year ended
March 31, 2023 are as follows :(In ₹ crore)

Name of the ultimate
beneficiaries

Registered address of the ultimate
beneficiaries

Relationship with theultimate beneficiaries

Date of investment

Amount ofinvestment (in ₹crore)

BASE life science A/S

Lyngbyvej 2, 2100 Copenhagen,Denmark

Step down subsidiary

September 1, 2022

685

Infosys Automotive andMobility GmbH & Co. KG

Schelmenwasenstraße 39, 70567
Stuttgart.

Wholly-owned subsidiary

December 15, 2022

330

286

Infosys Integrated Annual Report 2022-23

2.25 Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for
CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment sustainability,
art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development projects. A CSR committee has
been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in
Schedule VII of the Companies Act, 2013 :(In ₹ crore)

Particulars

As at March 31,
2023

2022

i) Amount required to be spent by the Company during the year

437

397

ii) Amount of expenditure incurred

392

345

iii) Shortfall at the end of the year

*

45

52

iv) Total of previous years shortfall

922v) Reason for shortfall

Pertains to ongoing projects

Pertains to ongoing projectsvi) Nature of CSR activities

Promoting education, promoting gender equality byempowering women, healthcare, environment sustainability,
art and culture, destitute care and rehabilitation, disaster
relief, COVID-19 relief and rural development projectsvii) Details of related party transactions, e.g., contribution to a trust controlled
by the Company in relation to CSR expenditure as per relevant AccountingStandard (1)(2)

321

12

viii) Where a provision is made with respect to a liability incurred by entering
into a contractual obligation, the movements in the provision during the year
shall be shown separately

NA

NA

(1)

Effective January 1, 2022, Infosys Foundation a trust jointly controlled by the KMP of Infosys Limited is a related party. For the year ending March 31, 2023, theCompany has made contributions to Infosys foundation to fulfil its corporate social responsibilities. Infosys Foundation supports programs in the areas ofeducation, rural development, healthcare, arts and culture, and destitute care.

(2)

Represents contribution to Infosys Science foundation for the year ending March 31, 2022 a controlled trust to support the Infosys Prize program towards
contemporary research in the various branches of science as a part of ongoing project.

* The unspent amount will be transferred to unspent CSR account within 30 days from the end of the financial year, in accordance with the Companies Act, 2013
read with the CSR Amendment Rules.

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required
to transfer its CSR capital assets created prior to January 2021. Accordingly the Company incorporated a controlled subsidiary , 'Infosys
Green Forum' under Section 8 of the Companies Act, 2013 and during the year ended March 31, 2022, the Company has completed thetransfer of assets upon obtaining the required approvals from regulatory authorities, as applicable.

2.26 Segment reporting
The Company publishes this financial statement along with the consolidated financial statements. In accordance with Ind AS 108,
Operating Segments, the Company has disclosed the segment information in the Consolidated Financial Statements.

2.27 Ratios
The ratios for the years ended March 31, 2023 and March 31, 2022 are as follows :Particulars

Numerator

Denominator

Current ratio

Current assets

Current liabilities

Debt – Equity ratio

Total Debt (represents Shareholder’s equity
lease liabilities) (1)Debt service coverage Earnings available for
ratio
debt service (2)Infosys Integrated Annual Report 2022-23

Debt service

As at March 31,

Variance (in %)

2023

2022

1.9

2.1

(9.6)

0.1

0.1

0.8

37.7

38.5

(1.9)

(3)

287

Standalone Financial Statements
Particulars

Numerator

Denominator

As at March 31,

Variance (in %)

2023

2022

Return on Equity(ROE)

Net profits after taxes

Average shareholder’sequity

34.0

30.2

3.8

Trade receivables
turnover ratio

Revenue

Average tradereceivable

6.2

5.9

6.2

Trade payables
turnover ratio

Purchases of services
and other expenses

Average trade
payables

11.7

11.3

3.8

Net capital turnover
ratio

Revenue

Working capital

5.0

3.8

33.0 *Net profit ratio

Net profit

Revenue

18.8

20.4

(1.7)

Return on Capital
Employed (ROCE)

Earning before
interest and taxes

Capital employed (4)

43.8

38.8

4.9

Unquoted

Income generated
from investments

Time weighted
average investments

5.7

8.7

(3.0)

QuotedIncome generated
from investments

Time weighted
average investments

3.6

5.9

(2.4)

Return on Investment
(ROI)

(1)

Debt represents only lease liabilities(2)

Net profit after taxes + non-cash operating expenses + interest + other adjustments like loss on sale of fixed assets etc.

(3)

Lease payments for the current year

(4)

Tangible net worth + deferred tax liabilities + lease liabilities* Revenue growth along with higher efficiency on working capital improvement has resulted in an improvement in the ratio.

2.28 Function-wise classification of Statement of Profit and Loss(In ₹ crore)

Particulars
Revenue from operations

Note
2.18

Year ended March 31,
2023

2022

1,24,014

1,03,940

Cost of sales

85,762

69,629Gross profit

38,252

34,311

5,018

4,125

Operating expenses
Selling and marketing expenses
General and administration expenses

5,293

4,787

Total operating expenses

10,311

8,912

Operating profit

27,941

25,399

157

128

3,859

3,224

31,64328,495

8,167

6,960

Finance cost
Other income, net

2.19

Profit before tax
Tax expense :Current tax

2.17

Deferred tax

2.17

Profit for the year

288

208

300

23,26821,235

Infosys Integrated Annual Report 2022-23

Particulars

NoteYear ended March 31,
2023

2022

(19)

(98)

2.5 and 2.17

(6)

97

2.11 and 2.17

(7)

(8)

2.5

(236)

(39)

(268)
23,000(48)
21,187

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
Fair value changes on investments, net
Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year

for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Bengaluru
April 13, 2023

Infosys Integrated Annual Report 2022-23

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary289

Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for theyear ended March 31, 2023
Index
A Independent Auditor’s Report ..................................................................................................................................................................................................291
B Consolidated Balance Sheet........................................................................................................................................................................................................299
C Consolidated Statement of Profit and Loss...........................................................................................................................................................................301
D Consolidated Statement of Changes in Equity....................................................................................................................................................................303
E Consolidated Statement of Cash Flows...................................................................................................................................................................................308
F Overview and notes to the Consolidated Financial Statements....................................................................................................................................310
1. Overview
1.1 Company overview.................................................................................................................................................................................................................310
1.2 Basis of preparation of financial statements.................................................................................................................................................................310
1.3 Basis of consolidation............................................................................................................................................................................................................310
1.4 Use of estimates and judgments.......................................................................................................................................................................................310
1.5 Critical accounting estimates and judgments..............................................................................................................................................................310
1.6 Recent accounting pronouncements..............................................................................................................................................................................311
2. Notes to the Consolidated financial statements
2.1 Business combinations..........................................................................................................................................................................................................312
2.2 Property, plant and equipment.........................................................................................................................................................................................313
2.3 Capital work-in-progress......................................................................................................................................................................................................315
2.4 Goodwill and other intangible assets..............................................................................................................................................................................316
2.5 Investments...............................................................................................................................................................................................................................318
2.6 Loans............................................................................................................................................................................................................................................321
2.7 Other financial assets.............................................................................................................................................................................................................321
2.8 Trade receivables.....................................................................................................................................................................................................................322
2.9 Cash and cash equivalents...................................................................................................................................................................................................323
2.10 Other assets..............................................................................................................................................................................................................................323
2.11 Financial instruments............................................................................................................................................................................................................323
2.12 Equity..........................................................................................................................................................................................................................................332
2.13 Other financial liabilities......................................................................................................................................................................................................339
2.14 Trade payables.........................................................................................................................................................................................................................339
2.15 Other liabilities........................................................................................................................................................................................................................340
2.16 Provisions..................................................................................................................................................................................................................................340
2.17 Income taxes............................................................................................................................................................................................................................341
2.18 Revenue from operations....................................................................................................................................................................................................344
2.19 Other income, net..................................................................................................................................................................................................................347
2.20 Expenses...................................................................................................................................................................................................................................348
2.21 Leases ........................................................................................................................................................................................................................................349
2.22 Employee benefits................................................................................................................................................................................................................351
2.23 Reconciliation of basic and diluted shares used in computing earnings per equity share.......................................................................356
2.24 Contingent liabilities and commitments......................................................................................................................................................................356
2.25 Related party transactions.................................................................................................................................................................................................357
2.26 Segment reporting...............................................................................................................................................................................................................365
2.27 Function-wise classification of Consolidated Statement of Profit and Loss....................................................................................................366

290

Infosys Integrated Annual Report 2022-23

Independent Auditor’s Report
To The Members of Infosys Limited

Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of INFOSYS LIMITED (the “Company”) and its subsidiaries (theCompany and its subsidiaries together referred to as the “Group”) which comprise the Consolidated Balance Sheet as at March 31, 2023,
and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes
in Equity and the Consolidated Statement of Cash Flows for the year then ended, and a summary of significant accounting policies andother explanatory information (hereinafter referred to as the “consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
statements, give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give a true and fair viewin conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the consolidated state ofaffairs of the Group as at March 31, 2023 and their consolidated profit, their consolidated total comprehensive income, their consolidatedchanges in equity and their consolidated cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the 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 Auditof the 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 consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtainedby us is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We havedetermined the matters described below to be the key audit matters to be communicated in our report.

Infosys Integrated Annual Report 2022-23

291

Consolidated Financial Statements
Sr. No.

Key Audit Matter

1

Revenue recognition
The Group’s contracts with customers include contracts with multiple products and services. The group derives
revenues from IT services comprising software development and related services, maintenance, consulting and package
implementation, licensing of software products and platforms across the Group’s core and digital offerings and businessprocess management services. The Group assesses the services promised in a contract and identifies distinct performanceobligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of
the customer to benefit independently from such deliverables involves significant judgement.
In certain integrated services arrangements, contracts with customers include subcontractor services or third-party vendor
equipment or software. In these types of arrangements, revenue from sales of third-party vendor products or services isrecorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Groupis the principal for the transaction. In doing so, the Group first evaluates whether it controls the products or service before
it is transferred to the customer. The Group considers whether it has the primary obligation to fulfil the contract, inventoryrisk, pricing discretion and other factors to determine whether it controls the products or service and therefore, is acting as aprincipal or an agent.
Fixed price maintenance revenue is recognized ratably either on (1) a straight-line basis when services are performed throughan indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method when thepattern of benefits from the services rendered to the customer and the Group’s costs to fulfil the contract is not even throughthe period of 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.
As certain contracts with customers involve management’s judgment in (1) identifying distinct performance obligations,(2) determining whether the Group is acting as a principal or an agent and (3) whether fixed price maintenance revenue
is recognized on a straight-line basis or using the percentage of completion method, revenue recognition from thesejudgments were identified as a key audit matter and required a higher extent of audit effort.
Refer Notes 1.5 and 2.18 to the consolidated financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to the (1) identification of distinct performance obligations, (2) determination of whether theGroup is acting as a principal or agent and (3) whether fixed price maintenance revenue is recognized on a straight-line basis
or using the percentage of completion method included the following, among others:••

We tested the effectiveness of controls relating to the (a) identification of distinct performance obligations, (b)determination of whether the Group is acting as a principal or an agent and (c) determination of whether fixed pricemaintenance revenue for certain contracts is recognized on a straight-line basis or using the percentage of completion
method.
We selected a sample of contracts with customers and performed the following procedures:– Obtained and read contract documents for each selection, including master service agreements, and other documentsthat were part of the agreement.
– Identified significant terms and deliverables in the contract to assess management’s conclusions regarding the (i)identification of distinct performance obligations (ii) whether the Group is acting as a principal or an agent and(iii) whether fixed price maintenance revenue is recognized on a straight-line basis or using the percentage ofcompletion method.

292

Infosys Integrated Annual Report 2022-23

Sr. No.

Key Audit Matter

2

Revenue recognition - Fixed price contracts using the percentage of completion method
Fixed price maintenance revenue is recognized ratably either (1) on a straight-line basis when services are performed throughan indefinite number of repetitive acts over a specified period or (2) using a percentage of completion method when thepattern of benefits from services rendered to the customer and the Group’s costs to fulfil the contract is not even through theperiod 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 percentageof-completion method.
Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to dateas a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measureprogress 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 inwhich such losses become probable based on the estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed price contracts measured using the percentage
of completion method as a key audit matter as 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.
This estimate has a high inherent uncertainty and requires consideration of progress of the contract, efforts or costs incurred
to-date and estimates of efforts or costs required to complete the remaining contract performance obligations over theterm of the contracts.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort toevaluate the reasonableness of the total estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 1.5 and 2.18 to the consolidated financial statements.
Auditor’s Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total expected costs or efforts to complete for fixed-price contracts included thefollowing, among others:••

We tested the effectiveness of controls relating to (1) recording of efforts or costs incurred and estimation of efforts
or costs required to complete the remaining contract performance obligations and (2) access and application controls
pertaining to time recording, allocation and budgeting systems which prevents unauthorised changes to recording ofefforts incurred.
We selected a sample of fixed price contracts with customers measured the using percentage-of-completion method andperformed the following:– Evaluated management’s ability to reasonably estimate the progress towards satisfying the performance obligationby comparing actual efforts or costs incurred to prior year estimates of efforts or costs budgeted for performanceobligations that have been fulfilled.
– Compared efforts or costs incurred with Group’s estimate of efforts or costs incurred to date to identify significant
variations and evaluate whether those variations have been considered appropriately in estimating the remaining costs
or efforts to complete the contract.
– Tested the estimate for consistency with the status of delivery of milestones and customer acceptances and sign off
from customers to identify possible delays in achieving milestones, which require changes in estimated costs or efforts
to complete the remaining performance obligations.

Infosys Integrated Annual Report 2022-23

293

Consolidated Financial Statements
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises theinformation included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, BusinessResponsibility and Sustainability Report, Corporate Governance and Shareholder’s Information, but does not include the consolidated
financial statements, standalone financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation andpresentation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated changes in equity and consolidated cash flows of theGroup in accordance with the Ind AS and other accounting principles generally accepted in India. The respective Boards of Directorsof the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with theprovisions 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 andcompleteness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of theconsolidated financial statements by the Directors of the Company, as aforesaid.
In preparing the 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 togoing concern and using the going concern basis of accounting unless the respective Boards of Directors either intend to liquidate theirrespective 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 Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 highlevel 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 statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
•

•

•
•

294

Identify and assess the risks of material misstatement of the 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 abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company
and its subsidiary companies which are companies incorporated in India, has adequate internal financial controls with reference toconsolidated financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the 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 theGroup 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 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.
Infosys Integrated Annual Report 2022-23

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, andwhether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an
opinion on the consolidated financial statements.

•

Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the 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 ourwork; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.
We communicate with those charged with governance of the Company and such other entities included in the consolidated financial
statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit andsignificant 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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in theaudit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1.

As required by Section 143(3) of the Act, based on our audit we report that:a)

We have sought and obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit of the aforesaid consolidated financial statements.

b)

In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books.

c)

The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income,Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows dealt with by this Report
are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated
financial statements.

d)

In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under
section 133 of the Act.

e)

On the basis of the written representations received from the directors of the Company as on March 31, 2023 taken on recordby the Board of Directors of the Company and the reports of the statutory auditors of its subsidiary companies incorporated
in India, none of the directors of the Group companies incorporated in India is disqualified as on March 31, 2023 from being
appointed as a director in terms of Section 164 (2) of the Act.

f)

With respect to the adequacy of the internal financial controls with reference to consolidated financial statements andthe operating effectiveness of such controls, refer to our separate Report in “Annexure A” which is based on the auditors’
reports of the Company and its subsidiary companies incorporated in India. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of internal financial controls with reference to consolidated financial
statements of those companies.

g)With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section
197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by
the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h)With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us:i)

The consolidated financial statements disclose the impact of pending litigations on the consolidated financial positionof the Group. (Refer Note 2.24) to the consolidated financial statements.

Infosys Integrated Annual Report 2022-23

295

Consolidated Financial Statements
ii)

The Group has made provision as required under applicable law or accounting standards for material foreseeable
losses. (Refer Note 2.16 to the consolidated financial statements). The Group did not have any long-term
derivative contracts.

iii)

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company and its subsidiary companies incorporated in India.

iv)(a) The respective Managements of the Company and its subsidiaries which are companies incorporated in India,
whose financial statements have been audited under the Act, have represented to us that, to the best of theirknowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by theCompany or any of such subsidiaries to or in any other person or entity, outside the Group, including foreign entity(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.
(b) The respective Managements of the Company and its subsidiaries which are companies incorporated in India,
whose financial statements have been audited under the Act, have represented to us that, to the best of theirknowledge and belief, no funds (which are material either individually or in the aggregate) have been received by
the Company or any of such subsidiaries from any person or entity, including foreign entity (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company or any of such subsidiaries
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances
performed by us on the Company and its subsidiaries which are companies incorporated in India whose financial
statements have been audited under the Act, nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any
material misstatement.

v)

As stated in Note 2.12.3 to the consolidated financial statements
a. The final dividend proposed in the previous year, declared and paid by the Company during the year is inaccordance with Section 123 of the Act, as applicable.
b. The interim dividend declared and paid by the Company during the year and until the date of this report is incompliance with Section 123 of the Act.
c. The Board of Directors of the Company have proposed final dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is inaccordance with section 123 of the Act, as applicable.

vi)

2.

Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit log) facility is applicable with effect from April 1, 2023 to theCompany and its subsidiaries, which are companies incorporated in India, and accordingly, reporting under Rule 11(g)of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/“CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s report, according
to the information and explanations given to us, and based on the CARO reports issued by us for the Company and its subsidiaries
included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we report that
there are no qualifications or adverse remarks in these CARO reports.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner

Place: Bengaluru
Date: April 13, 2023

296

(Membership No.039826)
UDIN: 23039826BGXRYQ2725

Infosys Integrated Annual Report 2022-23

Annexure “A” To The Independent Auditor’s Report(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members ofInfosys Limited of even date)

Report on the Internal Financial Controls with reference to Consolidated Financial Statements under Clause (i) of
sub-section 3 of Section 143 of the Companies Act, 2013 (the “Act”)
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2023,
we have audited the internal financial controls with reference to Consolidated Financial Statements of INFOSYS LIMITED (hereinafterreferred to as the “Company”) and its subsidiary companies, which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial Controls
The respective Boards of Directors of the Company and its subsidiary companies, which are companies incorporated in India, areresponsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
established by the respective Companies considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “ICAI”).
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, thesafeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls with reference to Consolidated Financial Statements of theCompany and its subsidiary companies, which are companies incorporated in India, based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by theInstitute of Chartered Accountants of India (“ICAI”) and the Standards on Auditing, prescribed under Section 143(10) of the Act, to theextent applicable to an audit of internal financial controls with reference to Consolidated Financial Statements. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference to Consolidated Financial Statements was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference
to Consolidated Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference toConsolidated Financial Statements included obtaining an understanding of internal financial controls with reference to Consolidated
Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on theinternal financial controls with reference to Consolidated Financial Statements of the Company and its subsidiary companies, which arecompanies incorporated in India.

Infosys Integrated Annual Report 2022-23

297

Consolidated Financial Statements
Meaning of Internal Financial Controls with reference to Consolidated Financial Statements
A company's internal financial control with reference to Consolidated Financial Statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control with reference to Consolidated Financial
Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, andthat receipts and expenditures of the company are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to Consolidated Financial Statements, including thepossibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls with reference to Consolidated Financial Statements tofuture periods are subject to the risk that the internal financial control with reference to Consolidated Financial Statements may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion and to the best of our information and according to the explanations given to us, the Company and its subsidiarycompanies, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls withreference to Consolidated Financial Statements and such internal financial controls with reference to Consolidated Financial Statements
were operating effectively as at March 31, 2023, based on the criteria for internal financial control with reference to Consolidated
Financial Statements established by the respective companies considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants(Firm’s Registration No. 117366W/W-100018)
Sanjiv V. Pilgaonkar
Partner

Place: Bangalore
Date: April 13, 2023

298

(Membership No.039826)
UDIN: 23039826BGXRYQ2725

Infosys Integrated Annual Report 2022-23

Consolidated Balance Sheet(In ₹ crore)

Particulars

Note

As at March 31,
2023

2022

AssetsNon-current assets
Property, plant and equipment

2.2

13,346

13,075Right-of-use assets

2.21

6,882

4,823

Capital work-in-progress

2.3

288

416

2.4.1 and 2.1

7,248

6,195

2.4.2

1,749

1,707

Investments

2.5

12,56913,651

Loans

2.6

39

34

Other financial assets

2.7

2,798

1,460

Deferred tax assets (net)

2.17

1,245

1,212

Income tax assets (net)

2.17

6,453

6,098

Other non-current assets

2.10

2,318

2,029

54,93550,700Goodwill
Other intangible assets
Financial assets

Total non-current assets
Current assets
Financial assets
Investments

2.5

6,909

6,673

Trade receivables

2.8

25,424

22,698Cash and cash equivalents

2.9

12,173

17,472

Loans

2.6

289

248

2.7

11,604

8,727

Income tax assets (net)Other financial assets

2.17

6

54

Other current assets

2.10

14,476

11,313

Total current assets
Total assets

Infosys Integrated Annual Report 2022-23

70,881

67,185

1,25,816

1,17,885

299

Consolidated Financial Statements

Consolidated Balance Sheet (contd.)
Particulars

Note

As at March 31,
2023

2022

Equity and liabilities
EquityEquity share capital

2,069

2,098

Other equity

2.12

73,33873,252

Total equity attributable to equity holders of the Company

75,40775,350Non-controlling interests
Total equity

388

386

75,79575,736

Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities

2.21

7,057

4,602

Other financial liabilities

2.13

2,058

2,337

Deferred tax liabilities (net)

2.17

1,220

1,156

Other non-current liabilities

2.15

500

451

10,835

8,546

Total non-current liabilities
Current liabilities
Financial liabilities
Lease liabilities

2.21

1,242

872

Trade payables

2.14

3,865

4,134

Other financial liabilities

2.13

18,55815,837

Other current liabilities

2.15

10,8309,178Provisions

2.16

1,307

975

Income tax liabilities (net)

2.17

3,384

2,607

Total current liabilities

39,18633,603

Total equity and liabilities

1,25,816

1,17,885

The accompanying notes form an integral part of the Consolidated 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
Partner

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023

300

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary

Infosys Integrated Annual Report 2022-23

Consolidated Statement of Profit and Loss(In ₹ crore, except equity share and per equity share data)

Particulars

Note

2023

2022

Revenue from operations

2.18

1,46,767

1,21,641

Other income, net

2.19

2,701

2,295

1,49,468

1,23,936

78,35963,986

14,062

12,606

Total income

Year ended March 31,

Expenses
Employee benefit expenses

2.22

Cost of technical sub-contractors
Travel expenses
Cost of software packages and others

2.20

Communication expenses
Consultancy and professional charges
Depreciation and amortization expenses

2.2, 2.4.2 and 2.21

Finance cost
Other expenses

2.20

1,525

827

10,902

6,811

713

611

1,684

1,885

4,225

3,476

284

200

4,392

3,424

Total expenses

1,16,146

93,826

Profit before tax

33,322

30,110Tax expense:
Current tax

2.17

9,287

7,811

Deferred tax

2.17

(73)

153

24,10822,146

Profit for the period

Infosys Integrated Annual Report 2022-23

301

Consolidated Financial Statements

Consolidated Statement of Profit and Loss (contd.)
Particulars

NoteYear ended March 31,
2023

2022

2.22

8

(85)

2.5

(7)

96

1

11

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net
Equity instruments through other comprehensive income, net
Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net

2.11

(7)

(8)

776

228

(256)

(49)

Exchange differences on translation of foreign operations
Fair value changes on investments, net

2.5

513

171

514

182

24,622

22,328

Owners of the Company

24,095

22,110Non-controlling interests

13

36

24,10822,146

24,59822,293

Total other comprehensive income / (loss), net of tax
Total comprehensive income for the period
Profit attributable to:Total comprehensive income attributable to:
Owners of the Company

24

35

24,622

22,328

Basic (₹)

57.63

52.52

Diluted (₹)

57.54

52.41

Non-controlling interests
Earnings per equity share
Equity shares of par value ₹5 each

Weighted average equity shares used in computing earnings per equity share
Basic (in shares)

2.23

418,08,97,857

420,95,46,724

Diluted (in shares)

2.23

418,77,31,070

421,85,25,134

The accompanying notes form an integral part of the Consolidated 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
Partner

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Membership No. 039826
Bengaluru
April 13, 2023

302

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary

Infosys Integrated Annual Report 2022-23

Infosys Integrated Annual Report 2022-23

Consolidated Statement of Changes in Equity(In ₹ crore)
Particulars

Equityshare
capital(1)

Balance as at
April 1, 2021

Other equity
Reserves and surplus

CapitalCapital Securities Retained General
Share
Special
Other
EquityExchange Effective
reserve redemption premium earnings reserve
options Economic reserves (3)instruments differences portion
reserve
outstanding
Zone Rethrough otheronof cashaccount investment
comprehensive translating
flow
reserve (2)incomethe hedges
financialstatementsof aforeign
operation

2,124

54

111

600 62,643

Profit for the period

–

–

–

–

Remeasurementof the net defined
benefit liability /asset, net * (Refer toNote 2.22)

–

–

–

Equity instruments
through othercomprehensive
income, net * (Refer
to Notes 2.5 and
2.17)

–

–

Fair value changes
on derivatives
designated as cash
flow hedge, net *(Refer to Note 2.11)–

Exchangedifferences ontranslation offoreign operations
Fair value changes
on investments, net*(Refer to Notes 2.5
and 2.17)
Total
Comprehensive
income for theperiodShares issued
on exercise of
employee stock
options (Refer toNote 2.12)

Total equity
Nonattributable controllingto equityinterest
Other items
holdersof otherof thecomprehensive
Company
income / (loss)

Other comprehensive income

Total
equity

2,715

372

6,385

6

158

1,331

10

(158)

76,351

431 76,782

22,110

–

–

–

–

–

–

–

–

22,11036

22,146

–

–

–

–

–

–

–

–

–

(85)

(85)

–

(85)

–

–

–

–

–

–

–

96

–

–

–

96

–

96

–

–

–

–

–

–

–

–

–

–

(8)

–

(8)

–

(8)

–

–

–

–

–

–

–

–

–

–

229

–

–

229

(1)

228

–

–

–

–

–

–

–

–

–

–

–

–

(49)

(49)

–

(49)

–

–

–

–

22,110

–

–

–

–

96

229

(8)

(134)

22,293

2

–

–

19

–

–

–

–

–

–

–

–

–

21

Changes in equity
for the year ended
March 31, 2022

35 22,328

303

–

21

Equitysharecapital(1)

Other equity
Reserves and surplus

Total equity
Nonattributable controllingto equityinterest
Other items
holdersof otherof thecomprehensive
Company
income / (loss)

Other comprehensive income

CapitalCapital Securities Retained General
Share
Special
Other
EquityExchange Effective
reserve redemption premium earnings reserve
options Economic reserves (3)instruments differences portion
reserve
outstanding
Zone Rethrough otheronof cashflow
account investment
comprehensive translating(2)
reserveincomethe hedges
financialstatementsof aforeign
operation

Total
equityInfosys Integrated Annual Report 2022-23

Employee stockcompensation
expense (Refer toNote 2.12)

–

–

–

–

–

–

393

–

–

–

–

–

–

393

–

393

Transfer on accountof options not
exercised

–

–

–

–

–

1

(1)

–

–

–

–

–

–

–

–

–

Buyback of equity
shares (Refer to Note2.12) **

(28)

–

–

(640)

(8,822) (1,603)

–

–

–

–

–

–

–

(11,093)

Transaction costs
relating to buyback *

–

–

–

–

–

(24)

–

–

–

–

–

–

–

(24)

–

(24)

Amount transferred
to capital
redemption reserve
upon buyback

–

–

28

–

–

(28)

–

–

–

–

–

–

–

–

–

–

Transfer to legal
reserve

–

–

–

–

(10)

–

–

–

10

–

–

–

–

–

–

–

Transferred on
account of exerciseof stock options(Refer to Note 2.12)

–

–

–

218

–

–

(218)

–

–

–

–

–

–

–

–

–

Income tax benefit
arising on exerciseof stock options(Refer to Note 2.12)

–

–

–

3

–

–

60

–

–

–

–

–

–

63

–

63

Dividends (1)

–
–

–
–

–
–

–
1
– (12,655)

–
–

–
–

–
–

–
–

–
–

–
–

–
–

–
–

1
(12,655)

Dividends paid to
non-controllinginterest of
subsidiary

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(79)

(79)

Transferred toSpecial Economic
Zone Reinvestment Reserve

–

–

–

–

(3,054)

–

–

3,054

–

–

–

–

–

–

–

–

Transferred fromSpecial Economic
Zone Reinvestment Reserveon utilization

–

–

–

–

1,100

–

–

(1,100)

–

–

–

–

–

–

–

–

2,098

54

139

200

61,313

1,061

606

8,339

16

254

1,560

2

(292)

75,350Changes in thecontrolling stake ofthe subsidiary

Balance as at
March 31, 2022

– (11,093)(1)–– (12,655)

386 75,736

Consolidated Financial Statements

304

Particulars

Infosys Integrated Annual Report 2022-23

Consolidated Statement of Changes in Equity (contd.)
Particulars

Equityshare
capital(1)

Balance as at
April 1, 2022

(In ₹ crore)

Other equity
Reserves and surplus

Total equity
Nonattributable controllingto equityinterest
Other items
holdersof otherof thecomprehensive
Company
income / (loss)

Other comprehensive income

CapitalCapital Securities Retained General
Share
Special
Other
EquityExchange Effective
reserve redemption premium earnings reserve
options Economic reserves (3)instruments differences portion
reserve
outstanding
Zone Rethrough otheronof cashaccount investment
comprehensive translating
flow
reserve (2)incomethe hedges
financialstatementsof aforeign
operation

Total
equity

2,098

54

139

200

61,313

1,061

606

8,339

16

254

1,560

2

(292)

75,350386 75,736

–
2,098

–
54

–
139

–
(19)
200 61,294

–
1,061

–
606

–
8,339

–
16

–
254

–
1,560

–
2

–
(292)

(19)
75,331–(19)386 75,717

Profit for the period

–

–

–

–

24,095

–

–

–

–

–

–

–

–

24,095

13

24,108Remeasurementof the net defined
benefit liability /asset, net * (Refer toNote 2.22)

–

–

–

–

–

–

–

–

–

–

–

–

8

8

–

8

Equity instruments
through othercomprehensive
income, net * (Refer
to Notes 2.5 and
2.17)

–

–

–

–

–

–

–

–

–

(7)

–

–

–

(7)

–

(7)

Fair value changes
on derivatives
designated as cash
flow hedge, net *(Refer to Note 2.11)

–

–

–

–

–

–

–

–

–

–

–

(7)

–

(7)

–

(7)

Exchangedifferences ontranslation offoreign operations

–

–

–

–

–

–

–

–

–

–

765

–

–

765

11

776

Fair value changes
on investments,
net * (Refer to Notes
2.5 and 2.17)

–

–

–

–

–

–

–

–

–

–

–

–

(256)

(256)

–

(256)

Total
Comprehensive
income for theperiod–––– 24,095

–

–

–

–

(7)

765

(7)

(248)

24,598

Shares issued
on exercise of
employee stock
options (Refer toNote 2.12)

1

–

–

34

–

–

–

–

–

–

–

–

35

Impact on adoptionof amendment to
Ind AS 37#
Changes in equity
for the year ended
March 31, 2023

305–

24 24,622–

35

Equitysharecapital(1)

Other equity
Reserves and surplus

Total equity
Nonattributable controllingto equityinterest
Other items
holdersof otherof thecomprehensive
Company
income / (loss)

Other comprehensive income

CapitalCapital Securities Retained General
Share
Special
Other
EquityExchange Effective
reserve redemption premium earnings reserve
options Economic reserves (3)instruments differences portion
reserve
outstanding
Zone Rethrough otheronof cashaccount investment
comprehensive translatingflow(2)
reserveincomethe hedges
financialstatementsof aforeign
operation

Total
equityEmployee stockcompensation
expense (Refer toNote 2.12)

–

–

–

–

–

–

514

–

–

–

–

–

–

514

–

514

Transferred to legal
reserve

–

–

–

–

(3)

–

–

–

3

–

–

–

–

–

–

–

Transferred on
account of exerciseof stock options

–

–

–

291

–

–

(291)

–

–

–

–

–

–

–

–

–

Transferred on
account of options
not exercised

–

–

–

–

–

2

(2)

–

–

–

–

–

–

–

–

–

Buyback of equity
shares (Refer to Note2.12) **

(30)

–

–

(340) (11,096)

–

–

–

–

–

–

–

–

(11,466)

Transaction costs
relating to buyback *

–

–

–

(19)

(5)

–

–

–

–

–

–

–

–

(24)

–

(24)

Amount transferred
to capital
redemption reserve
upon buyback

–

–

30

–

(21)

(9)

–

–

–

–

–

–

–

–

–

–

Income tax benefit
arising on exerciseof stock options

–

–

–

–

–

–

51

–

–

–

–

–

–

51

–

51

Dividends (1)– (11,466)

Infosys Integrated Annual Report 2022-23

–

–

–

– (13,632)

–

–

–

–

–

–

–

–

(13,632)

Dividends paid to
non-controllinginterest of
subsidiary

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(22)

(22)

Transferred toSpecial Economic
Zone Reinvestment Reserve

–

–

–

–

(3,139)

–

–

3,139

–

–

–

–

–

–

–

–

Transferred fromSpecial Economic
Zone Reinvestment Reserveon utilization

–

–

–

–

1,464

–

–

(1,464)

–

–

–

–

–

–

–

–

2,069

54

169

166

58,957

1,054

878

10,014

19

247

2,325

(5)

(540)

75,407388

75,795

Balance as at
March 31, 2023

– (13,632)

Consolidated Financial Statements

306

Particulars

Infosys Integrated Annual Report 2022-23*

Net of tax**

Including tax on buyback of ₹2,166 crore and ₹1,893 crore for the years ended March 31, 2023 and March 31, 2022, respectively.

#

Impact on account of adoption of amendment to Ind AS 37, Provisions, Contingent Liabilities and Contingents Assets(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(i)(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 Consulting are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses orfor measures designed to sustain the Company through difficult times, to prevent unemployment or to mitigate its consequences.

The accompanying notes form an integral part of the Consolidated 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
PartnerMembership No. 039826
Bengaluru
April 13, 2023

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent
Director

Chief Financial Officer

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary307

Consolidated Financial Statements

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 noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associatedwith 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

NoteYear ended March 31,
2023

2022

24,10822,146

9,214

7,964

Cash flow from operating activities
Profit for the year
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense

2.17

Depreciation and amortization

2.2, 2.4.2 and 2.21

4,225

3,476

Interest and dividend income

2.19(1,817)(1,645)

Finance cost

284

200

Impairment loss recognized / (reversed) under expected credit loss model

283

170

Exchange differences on translation of assets and liabilities, net

161

119

Stock compensation expense

519

415

628

76

Trade receivables and unbilled revenue(7,076)(7,937)Loans, other financial assets and other assets(3,108)(1,914)

Trade payables

(279)

1,489

Other financial liabilities, other liabilities and provisions

4,119

6,938

Cash generated from operations

31,261

31,497

Income taxes paid

(8,794)(7,612)

Net cash generated by operating activities

22,46723,885(2,579)(2,161)

Deposits placed with corporation

(996)

(906)

Redemption of deposits placed with corporation

762

753

Interest and dividend received

1,525

1,898

Other adjustments

2.12

Changes in assets and liabilities

Cash flows from investing activities
Expenditure on property, plant and equipment and intangibles

Payment towards acquisition of business, net of cash acquired

(910)

–

Payment of contingent consideration pertaining to acquisition of business

(60)

(53)

Escrow and other deposits pertaining to buyback

(483)

(420)

Redemption of escrow and other deposits pertaining to buyback

483

420

Other receipts

71

67

Other payments

–

(22)

Payments to acquire investments
Tax-free bonds and government bonds

(27)

–

(70,631)(54,064)

Target maturity fund

(400)

–

Certificates of deposit(10,348)(4,184)

Liquid mutual fund units

308

Infosys Integrated Annual Report 2022-23

Consolidated Statement of Cash Flows (contd.)
Particulars

NoteYear ended March 31,
2023

Commercial paper

2022(3,003)–

Non-convertible debentures(249)(1,609)Government securities(1,569)(4,254)

(20)

(24)

OthersProceeds on sale of investments
Tax-free bonds and government bonds

221

20

Liquid mutual funds units

71,85153,669Certificates of deposit

10,404787

Commercial paper

2,298

–

470

2,201

1,882

1,457

Non-convertible debentures
Government securities
Equity and preference securities

99–

Others–9(1,209)(6,416)

Net cash (used in) / generated from investing activities
Cash flows from financing activities
Payment of lease liabilities(1,231)(915)

Payment of dividends(13,631)(12,652)

Payment of dividend to non-controlling interest of subsidiary

(22)

(79)

Shares issued on exercise of employee stock options

35

21

Payment towards purchase of non-controlling interest
Other receipts
Other payments

–

(2)

132

236

(479)

(126)

Buyback of equity shares including transaction cost and tax on buyback(11,499)(11,125)

Net cash used in financing activities(26,695)(24,642)(5,437)(7,173)

138

(69)

2.9

17,472

24,7142.9

12,173

17,472

2.9

362

471

Net increase / (decrease) in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

Supplementary information
Restricted cash balance

The accompanying notes form an integral part of the Consolidated 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
PartnerMembership No. 039826
Bengaluru
April 13, 2023

D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent
Director

Chief Financial Officer

Infosys Integrated Annual Report 2022-23

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary309

Consolidated Financial Statements

Overview and notes to the Consolidated Financial Statements
1. Overview
1.1 Company overview
Infosys Limited ("the Company" or Infosys) provides
consulting, technology, outsourcing and next-generation
digital services, to enable clients to execute strategies for theirdigital transformation. Infosys' strategic objective is to build asustainable organization that remains relevant to the agenda ofclients, while creating growth opportunities for employees andgenerating profitable returns for investors. Infosys' strategy is tobe 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 ishereinafter referred to as 'the Group'.
The Company is a public limited company incorporated anddomiciled 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 Consolidated financial statements are approved for
issue by the Company's Board of Directors on April 13, 2023.

1.2 Basis of preparation of financial statements
These Consolidated financial statements are prepared inaccordance with the Indian Accounting Standard (Ind AS), under
the historical cost convention on accrual basis, except for certain
financial instruments which are measured at fair values, theprovisions of the Companies Act, 2013 ("the Act") and guidelines
issued by the Securities and Exchange Board of India (SEBI).
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 ora revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
As the year-end 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-end figures
reported in this statement.

1.3 Basis of consolidation
Infosys consolidates entities which it owns or controls.
The Consolidated financial statements comprise the financial
statements of the Company, its controlled trusts and its
subsidiaries. Control exists when the parent has power overthe 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.
310

The financial statements of the Group companies areconsolidated on a line-by-line basis and intra-group balances
and transactions including unrealized gain / loss from suchtransactions 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 theCompany, 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 andassumptions affect the application of accounting policies andthe reported amounts of assets and liabilities, the disclosuresof contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses
during the period. The application of accounting policies that
require critical accounting estimates, which involve complex
and subjective judgments and the use of assumptions inthese financial statements, have been disclosed in Note 1.5.
Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriatechanges in estimates are made as the Management becomesaware of changes in circumstances surrounding the estimates.
Changes in estimates and judgments are reflected in thefinancial statements in the period in which changes are madeand, if material, their effects are disclosed in the notes to theConsolidated financial statements.

1.5 Critical accounting estimates and judgments
a. Revenue recognition
The Group’s contracts with customers include promises totransfer multiple products and services to a customer. Revenues
from customer contracts are considered for recognition andmeasurement 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 Groupassesses 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 fromsuch deliverables, and allocation of transaction price to these
distinct performance obligations involves significant judgment.
Fixed-price maintenance revenue is recognized ratably on astraight-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 thepattern of benefits from the services rendered to the customer
and the Group’s costs to fulfil the contract is not even throughthe period of the contract because the services are generally
discrete in nature and not repetitive. The use of method to

Infosys Integrated Annual Report 2022-23

recognize the maintenance revenues requires judgment
and is based on the promises in the contract and natureof the deliverables.
The Group uses the percentage-of-completion methodin accounting for other fixed-price contracts. Use of thepercentage-of-completion method requires the Group to
determine the actual efforts or costs expended to date as aproportion 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 theperiod of the contract to reflect any changes based on the latest
available information.
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 thecustomer and the vendor, and gross when the Group is theprincipal for the transaction. In doing so, the Group first evaluates
whether it controls the good or service before it is transferred tothe customer. The Group considers whether it has the primaryobligation to fulfil the contract, inventory risk, pricing discretionand other factors to determine whether it controls the goods orservice and therefore, is acting as a principal or an agent.
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 tocomplete the contract.
b. Income taxes
The Group's two major tax jurisdictions are India and the UnitedStates, though the Company also files tax returns in otheroverseas 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, theManagement considers whether some portion or all of thedeferred 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.
The Management considers the scheduled reversals of deferredincome tax liabilities, projected future taxable income and tax
planning strategies in making this assessment. Based on the levelof 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 willrealize the benefits of those deductible differences. The amountof the deferred income tax assets considered realizable,
however, could be reduced in the near term if estimates of futuretaxable income during the carry forward period are reduced(Refer to Note 2.17).

Infosys Integrated Annual Report 2022-23

c. Business combinations and intangible assets
Business combinations are accounted for using Ind AS 103,
Business Combinations. Ind AS 103 requires the identifiableintangible assets and contingent consideration to be fair valued
in order to ascertain the fair value of identifiable assets, liabilities
and contingent liabilities of the acquiree. These valuations are
conducted by external valuation experts. Estimates are required
to be made in determining the value of contingent consideration,
value of option arrangements and intangible assets.
These measurements are based on information available at theacquisition date and are based on expectations and assumptions
that have been deemed reasonable by the Management (Refer toNotes 2.1 and 2.4.2).
d. Property, plant and equipment
Property, plant and equipment represent a significant proportionof the asset base of the Group. The charge in respect of periodic
depreciation is derived after determining an estimate of anasset’s expected useful life and the expected residual value atthe 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 andwhenever there is an indication that the recoverable amountof 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 higherof value-in-use and fair value less cost to sell. Key assumptionsin 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 2.4.1).

1.6 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) notifies new standards
or amendments to the existing standards under Companies(Indian Accounting Standards) Rules as issued from time to time.
On March 31, 2023, the MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below :Ind AS 1, Presentation of Financial Statements – The amendment
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 April 1, 2023. The Group has evaluated theamendment and the impact of the amendment is insignificant in
the Group’s financial statements.
Ind AS 8, Accounting Policies, Changes in Accounting Estimatesand Errors – The amendment has introduced a definition of‘accounting estimates’ and included amendments to Ind AS 8
to help entities distinguish changes in accounting policies from311

Consolidated Financial Statementschanges in accounting estimates. The effective date for adoptionof this amendment is annual periods beginning on or after
April 1, 2023. The Group has evaluated the amendment and there
is no impact on its consolidated financial statements.

Acquisition

Ind AS 12, Income Taxes – This amendment has narrowed thescope 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 thisamendment is annual periods beginning on or after April 1, 2023.
The Group has evaluated the amendment and there is no impact
on its consolidated financial statements.

(i) oddity GmbH, oddity group services GmbH, oddity space
GmbH, oddity jungle GmbH, oddity code GmbH and oddity
waves GmbH (collectively known as oddity), a Germanybased digital marketing, experience, and commerce
agencies on April 20, 2022.

2. Notes to the Consolidated financial statements

These acquisitions are expected to strengthen the Group’s
creative, branding and experience design capabilities andaugment the Group’s life sciences expertise, scales its digitaltransformation capabilities with cloud-based industry solutions
and expand its presence across Europe.

2.1 Business combinations
Accounting policy
Business combinations have been accounted for using theacquisition method under the provisions of Ind AS 103,
Business Combinations.
The purchase price in an acquisition is measured at the fair valueof the assets transferred, equity instruments issued and liabilities
incurred or assumed at the date of acquisition, which is the dateon which control is transferred to the Group. The purchase pricealso 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 dateand changes in the fair value of the contingent consideration arerecognized in the Consolidated Statement of Profit and Loss.
The interest of non-controlling shareholders is initiallymeasured 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-byacquisition basis. Subsequent to acquisition, the carrying amountof non-controlling interests is the amount of those interests at
initial recognition plus the non-controlling interests’ share ofsubsequent 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 estimatedpresent 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, theliability is derecognized.

312

During the year ended March 31, 2023, the Group, completed twobusiness combinations to complement its digital offerings byacquiring 100% voting interests in:(ii) BASE life science A/S, a consulting and technology firm in thelife science industry in Europe on September 1, 2022.

The purchase price allocated to assets acquired and liabilities
assumed based upon determination of fair values at the dates ofacquisition is as follows :(In ₹ crore)

Particulars

Acquiree’s
carrying
amountFair value
adjustments

Purchase
price
allocated

Net assets(1)

103

–

103

Customer contracts
and relationships

–

274

274

Vendor relationships

–

30

30

Brand

–

24

24

Intangible assets –Deferred tax
liabilities on
intangible assets
Total

–

(80)

(80)

103

248

351

Goodwill

630
981

Total purchase price(1)

Includes cash and cash equivalents acquired of ₹26 crore.

The excess of the purchase consideration paid over the fair valueof assets acquired has been attributed to goodwill. The primary
items that generated this goodwill are the value of the acquired
assembled workforce and estimated synergies, neither of which
qualify as an intangible asset.
Goodwill is not tax-deductible. Goodwill pertaining to thesebusiness combinations is allocated to operating segments as
more fully described in Note 2.4.1.

Infosys Integrated Annual Report 2022-23

The purchase consideration of ₹981 crore includes cash of ₹936
crore and contingent consideration with an estimated fair valueof ₹45 crore as on the date of acquisition.
At the acquisition date, the key inputs used in determination of
the fair value of contingent consideration are the probabilities
assigned towards achievement of financial targets anddiscount rate of 12.5%. The undiscounted value of contingent
consideration as of March 31, 2023 was ₹58 crore.
Additionally, these acquisitions have shareholder and employee
retention bonus payable to the employees of the acquiree
over three years, subject to their continuous employment with
the Group along with achievement of financial targets for therespective years. Performance and Retention bonus is recognizedin employee benefit expenses in the Consolidated Statement ofProfit and Loss over the period of service.
Fair value of trade receivables acquired is ₹111 crore as ofacquisition date and as of March 31, 2023, the amounts aresubstantially collected.
Transaction costs that the Group incurs in connection witha business combination such as finder’s fees, legal fees, due
diligence fees, and other professional and consulting fees are
expensed as incurred. The transaction costs of ₹7 crore related
to the acquisition have been included under administrative
expenses in the Consolidated Statement of Profit and Loss for theyear ended March 31, 2023.

2.2 Property, plant and equipment
Accounting policy
Property, plant and equipment are stated at cost, lessaccumulated 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 theManagement. The charge in respect of periodic depreciation isderived at after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life.
The Group depreciates property, plant and equipment overtheir estimated useful lives using the straight-line method.
The estimated useful lives of assets are as follows :Buildings (1)5 years

Office equipment

5 years(1)

3-5 years

Furniture and fixtures (1)5 years

VehiclesLeasehold improvements

5 years
Lower of useful life of the asset
or lease term

(1)

Advances paid towards the acquisition of property, plant andequipment outstanding at each Balance Sheet date is classified
as capital advances under other non-current assets and the costof 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 isprobable that future economic benefits associated with thesewill flow to the Group and the cost of the item can be measured
reliably. The cost and related accumulated depreciation
are eliminated from the financial statements upon sale orretirement of the asset.
Impairment
Property, plant and equipment are evaluated for recoverability
whenever events or changes in circumstances indicate that theircarrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher ofthe fair value less cost to sell and the value-in-use) is determinedon an individual asset basis unless the asset does not generatecash flows that are largely independent of those from otherassets. 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 tobe recognized in the Consolidated Statement of Profit and Lossis measured by the amount by which the carrying value of theassets exceeds the estimated recoverable amount of the asset.
An impairment loss is reversed in the Consolidated Statement ofProfit and Loss if there has been a change in the estimates used
to determine the recoverable amount. The carrying amountof the asset is increased to its revised recoverable amount,provided that this amount does not exceed the carrying amountthat would have been determined (net of any accumulated
depreciation) had no impairment loss been recognized for theasset in prior years.

22-25 years

Plant and machinery (1)(2)
Computer equipment

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

(1)

Based on technical evaluation, the Management believes that theuseful lives, as given above, best represent the period over which theManagement expects to use these assets. Hence, the useful lives forthese 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 25 years

Infosys Integrated Annual Report 2022-23

313

Consolidated Financial Statements
The changes in the carrying value of property, plant and equipment for the year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars

Gross carrying
value as at
April 1, 2022

Land –
Freehold

Buildings (1)1,431

11,224

Plant and
Office Computermachinery equipment equipment

3,210

1,427

8,527

Furniture
Leaseholdand improvements
fixtures2,278

Vehicles

Total

44

29,375

1,234

Additions – Business
Combination (Refer
to Note 2.1)

–

–

–

5

6

1

2

–

14

Additions

2

337

273

122

1,510

364

220

2

2,830

Deletions *

(2)

–

(182)

(76)

(1,563)

(348)

(25)

(1)

(2,197)

Translationdifference

–

1

1

4

39

8

14

–

67

Gross carrying
value as at March
31, 2023

1,431

11,562

3,302

1,482

8,519

2,303

1,445

45

30,089

Accumulated
depreciation as at
April 1, 2022–

(4,100)(2,344)(1,150)(6,034)(1,779)

(856)

(37)

(16,300)

Depreciation

–

(434)

(273)

(121)

(1,322)

(236)

(187)

(4)

(2,577)

Accumulated
depreciation ondeletions *

–

–

181

76

1,556

347

21

1

2,182

Translationdifference

–

(1)

(1)

(3)

(26)

(7)

(10)

–

(48)

Accumulated
depreciation as at
March 31, 2023–

(4,535)(2,437)(1,198)(5,826)(1,675)(1,032)(40)(16,743)

Carrying value as
at April 1, 2022

1,431

7,124

866

277

2,493

499

378

7

13,075Carrying value as
at March 31, 2023

1,431

7,027

865

284

2,693

628

413

5

13,346*

During the year ended March 31, 2023, certain assets which were not in use having gross book value of ₹1,918 crore (net book value: Nil) were retired.

The changes in the carrying value of property, plant and equipment for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars

Land –
Freehold

Buildings (1)1,399

10,565Additions32599

Deletions *–(1)

Translationdifference

–

61

1,431

11,224Gross carrying
value as at
April 1, 2021

Gross carrying
value as at
March 31, 2022

314

Plant and
Office Computermachinery equipment equipment

3,296

Furniture
Leaseholdand improvements
fixtures

Vehicles

Total

1,188

44

27,651

1,371

7,639

2,149

256

68

1,542

140

79

–

2,716

(349)

(15)

(672)

(17)

(46)

–

(1,100)

7

3

18

6

13

–

108

3,210

1,427

8,527

2,278

1,234

44

29,375

Infosys Integrated Annual Report 2022-23

Particulars

Land –
Freehold

Buildings (1)Plant and
Office Computermachinery equipment equipment

Furniture
Leaseholdand improvements
fixtures

Vehicles

Total

Accumulated
depreciation as at
April 1, 2021–

(3,675)(2,425)(1,043)(5,636)(1,580)

(700)

(32)

(15,091)

Depreciation

–

(417)

(245)

(120)

(1,055)

Accumulated
depreciation ondeletions *

(210)

(181)

(5)

(2,233)

–

–

330

14

671

16

37

–

1,068

Translationdifference

–

(8)

(4)

Accumulated
depreciation as at
March 31, 2022

(1)

(14)

(5)

(12)

–

(44)

–

(4,100)(2,344)(1,150)(6,034)(1,779)

(856)

(37)

(16,300)

Carrying value as
at April 1, 2021

1,399

6,890

871

328

2,003

569

488

12

12,560Carrying value as
at March 31, 2022

1,431

7,124

866

277

2,493

499

378

7

13,075*

During the year ended March 31, 2022, certain assets which were not in use having gross book value of ₹316 crore (net book value: Nil) respectively, wereretired.

(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 amortization expense in the Consolidated Statement of Profit and Loss.
Repairs and maintenance costs are recognized in the Consolidated Statement of Profit and Loss when incurred.

2.3 Capital work-in-progress(In ₹ crore)

Particulars

As at March 31,
2023

2022

Capital work-in-progress

288

416

Total capital work-in-progress

288

416

The capital work-in-progress ageing schedule for the years ended March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)
Particulars

Amount in capital-work-in progress for a period ofLess than 1 year

1-2 years

2-3 years

More than 3
years

Total

Projects in progress

235

21

12

20

288

272

48

51

45

416

Total capital work-in-progress

235

21

12

20

288

272

48

51

45

416

For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, the project-wise detailsof when the project is expected to be completed as of March 31, 2023 and March 31, 2022 are as follows :(In ₹ crore)

Particulars

To be completed inLess than 1 year

1-2 years

2-3 years

More than 3
years

Total

114

–

–

–

114

–

27

–

–

Projects in progress
KL-SP-SDB1
Infosys Integrated Annual Report 2022-2327315

Consolidated Financial Statements
Particulars

To be completed inLess than 1 year

1-2 years

2-3 years

More than 3
years

Total

20

–

–

–

20

–

–

–

–

–

–

–

–

–

–

89

–

–

–

89

–

–

–

–

–

30

–

–

–

30

–

–

–

–

–

116

–

–

–

116

134

–

–

–

134

235

27

–

–

262

BN-SP-MET
NG-SZ-SDB1
BN-SP-RETRO
BH-SZ-MLP
Total capital work-in-progress

(1)

(1)

There are no subsidiaries in the Group having more than 10% of the total capital work-in-progress.

2.4 Goodwill and other intangible assets
2.4.1 Goodwill

A summary of changes in the carrying amount of
goodwill is as follows :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 andcontingent 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 ismeasured at cost less accumulated impairment losses.

(In ₹ crore)

Particulars

As at March 31,
2023

2022

Carrying value at the beginning

6,195

6,079

Goodwill on acquisitions(Refer to Note 2.1)

630–

Translation differences
Carrying value at the end

423

116

7,248

6,195

Impairment
Goodwill is tested for impairment on an annual basis andwhenever 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 groupsof CGUs which benefit from the synergies of the acquisition andwhich represents the lowest level at which goodwill is monitored
for internal management purposes. A CGU is the smallest
identifiable group of assets that generates cash inflows that arelargely independent of the cash inflows from other assets orgroup of assets. Impairment occurs when the carrying amount ofa CGU including the goodwill, exceeds the estimated recoverable
amount of the CGU. The recoverable amount of a CGU is thehigher 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. Key assumptions in the cash flow
projections are prepared based on current economic conditions
and includes estimated long term growth rates, weighted
average cost of capital and estimated operating margins.

For the purpose of impairment testing, goodwill acquired ina business combination is allocated to the CGU or groups of
CGUs, which benefit from the synergies of the acquisition.
The Group internally reviews the goodwill for impairment at
the operating segment level, after allocation of the goodwill to
CGUs or groups of CGUs.
The allocation of goodwill to operating segments as at
March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Segment

As at March 31,
2023

2022

Financial services

1,465

1,366

Retail929

817

Communication

668

619

Energy, Utilities, Resources andServices

1,152

1.070

Manufacturing

573

499

Life Sciences
Operating segments without
significant goodwill
Total
316

943

407

5,730

4,778

559

531

6,289

5,309

Infosys Integrated Annual Report 2022-23

The goodwill pertaining to Panaya amounting to ₹959 crore and₹886 crore as at March 31, 2023 and March 31, 2022, respectively
is tested for impairment at the entity level.

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.

The recoverable amount of a CGU is the higher of its fair valueless cost to sell and its value-in-use. The fair value of a CGU isdetermined based on the market capitalization. Value-in-use
is determined based on discounted future cash flows. The key
assumptions used for the calculations are as follows :Research costs are expensed as incurred. Software productdevelopment costs are expensed as incurred unless technicaland commercial feasibility of the project is demonstrated, future
economic benefits are probable, the Group has an intention andability to complete and use or sell the software and the costs canbe measured reliably. The costs which can be capitalized include
the cost of material, direct labor, and overhead costs that are
directly attributable to prepare the asset for its intended use.

(In %)

Particulars

As at March 31,
2023

2022

Long-term growth rate

8-10

8-10

Impairment

Operating margins

19-21

19-21

13

12

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 fairvalue 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.

Discount rate

The above discount rate is based on the Weighted Average Costof Capital (WACC) of the Company. As at March 31, 2023, theestimated recoverable amount of the CGU exceeded its carrying
amount. Reasonable sensitivities in key assumptions is unlikely tocause the carrying amount to exceed the recoverable amount of
the cash generating units.

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

2.4.2 Other intangible assets
Accounting policy
Intangible assets are stated at cost less accumulated amortizationand impairment. Intangible assets are amortized over theirrespective individual estimated useful lives on a straight-line
basis, from the date that they are available for use. The estimateduseful life of an identifiable intangible asset is based on anumber of factors, including the effects of obsolescence,
demand, competition, and other economic factors (such as thestability of the industry, and known technological advances)

The changes in the carrying value of acquired intangible assets for the year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars

Gross carrying value as at April 1, 2022
Additions
Acquisition through business combination (Refer to Note 2.1)
Deletions
Translation difference

Customerrelated

Software- Intellectual
Brand orrelatedproperty TrademarkrightsRelated
related

Others *

Total

2,080

915

1

299

686

3,981

-

62

–

–

–

62

274

–

–

24

30

328

–

(4)

–

–

–

(4)

153

58

–

23

58

292

Gross carrying value as at March 31, 2023

2,507

1,031

1

346

774

4,659

Accumulated amortization as at April 1, 2022

(1,279)

(569)

(1)

(141)

(284)

(2,274)

(236)

(84)

–

(45)

(119)

(484)

–

3

–

–

–

3

Amortization expense
Deletions
Translation differences
Accumulated amortization as at March 31, 2023

Infosys Integrated Annual Report 2022-23

(85)

(38)

–

(9)

(23)

(155)

(1,600)

(688)

(1)

(195)

(426)

(2,910)317

Consolidated Financial Statements
Particulars

Customerrelated

Software- Intellectual
Brand orrelatedproperty TrademarkrightsRelated
related

Others *Total

Carrying value as at April 1, 2022

801

346

–

158

402

1,707

Carrying value as at March 31, 2023

907

343

–

151

348

1,749

Estimated useful life (in years)

1-15

3-10

–

3-10

3-7

Estimated remaining useful life (in years)

1-11

1-6

–

1-7

1-5

The changes in the carrying value of acquired intangible assets for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars

Gross carrying value as at April 1, 2021

Customerrelated

Software- Intellectual
Brand orrelatedproperty TrademarkrightsRelated
related

Others

*

Total

2,064

824

1

293

666

3,848

Additions

–

85

–

–

–

85

Deletions

–

–

–

–

–

–

16

6

–

6

20

48

Gross carrying value as at March 31, 2022

2,080

915

1

299

686

3,981

Accumulated amortization as at April 1, 2021

(1,021)

(492)

(1)

(99)

(163)

(1,776)

(238)

(68)

–

(40)

(118)

(464)

–

–

–

–

–

–

Translation difference

Amortization expense
Deletions

(20)

(9)

–

(2)

(3)

(34)

Accumulated amortization as at March 31, 2022

(1,279)

(569)

(1)

(141)

(284)

(2,274)

Carrying value as at April 1, 2021

1,043

332

–

194

503

2,072

Carrying value as at March 31, 2022

801

346

–

158

402

1,707

Estimated useful life (in years)

1-15

3-10

–

3-10

3-7

Estimated remaining useful life (in years)

1-12

1-7

–

1-8

1-6

Translation differences*

Majorly includes intangibles related to vendor relationships

The amortization expense has been included under depreciation and amortization expense in the Consolidated Statement of Profit and Loss.

Research and Development expenditure
Research and Development expense recognized in the Consolidated Statement of Profit and Loss for the years ended March 31, 2023 andMarch 31, 2022 was ₹1,042 crore and ₹922 crore, respectively.

2.5 Investments(In ₹ crore)

Particulars

As at March 31,
2023

2022

193

192

Non-current
Unquoted
Investments carried at fair value through other comprehensive income
Preference securities

3

2

196

194

Preference securities–

24

Compulsorily convertible debentures–

7

Equity instruments
Investments carried at fair value through profit or loss

318

Infosys Integrated Annual Report 2022-23

As at March 31,

Particulars
Target maturity fund units
Others

(1)

2023

2022

402

–

169

152

571

183

28

–

QuotedInvestments carried at amortized cost
Government bonds

1,742

1,901

1,770

1,901

Non-convertible debentures

2,713

3,718

Government securities

7,319

7,655

Tax-free bonds
Investments carried at fair value through other comprehensive income

Total non-current investments

10,032

11,373

12,56913,651

Current investments
Unquoted
Investments carried at fair value through profit or loss
Liquid mutual fund units

975

2,012

975

2,012

Investments carried at fair value through other comprehensive income
Commercial paper
Certificates of deposit

742

–

3,574

3,429

4,316

3,429

QuotedInvestments carried at amortized cost
Government bonds

–

21

150

200

150

221

Non-convertible debentures

1,155

495

Government securities

313

516

Tax-free bonds
Investments carried at fair value through other comprehensive income

1,468

1,011

Total current investments

6,909

6,673

Total investments

19,47820,324Aggregate amount of quoted investments

13,42014,506

Market value of quoted investments (including interest accrued), current

1,637

1,247

Market value of quoted investments (including interest accrued), non-current

12,042

13,612Aggregate amount of unquoted investments

6,058

5,818

Investments carried at amortized cost

1,920

2,122

Investments carried at fair value through other comprehensive income

16,012

16,007

Investments carried at fair value through profit or loss

1,546

2,195

(1)

Uncalled capital commitments outstanding as at March 31, 2023 and March 31, 2022 was ₹92 crore and ₹28 crore, respectively.

Refer to Note 2.11 for accounting policies on Financial Instruments.

Infosys Integrated Annual Report 2022-23

319

Consolidated Financial Statements
The details of amounts recorded in other comprehensive income are as follows :(In ₹ crore)

Particulars

Year ended March 31, 2023

Year ended March 31, 2022

Gross

Tax

Net

Gross

Tax

Net

Net gain / (loss) on
Non-convertible debentures

(100)

(1)

(101)

(13)

1

(12)

Certificates of deposit

(1)

–

(1)

2

(1)

1

Government securities

(162)

8

(154)

(60)

22

(38)

(8)

1

(7)

119

(23)

96

Equity and preference securities

Method of fair valuation(In ₹ crore)

Class of investment

MethodFair value as at March 31,
2023

2022

Liquid mutual fund units

Quoted price

975

2,012

Target maturity fund units

Quoted price402–

Tax-free bonds and government bonds

Quoted price and market observable inputs

2,148

2,447

Non-convertible debentures

Quoted price and market observable inputs

3,868

4,213

Government securities

Quoted price and market observable inputs

7,632

8,171

Commercial papers

Market observable inputs

742–

Certificates of deposit

Market observable inputs

3,574

3,429

Unquoted equity and preference securities – carriedat fair value through other comprehensive income

Discounted cash flows method, Market multiples
method, Option pricing model

196

194

Unquoted equity and preference securities – carriedat fair value through profit or loss

Discounted cash flows method, Market multiples
method, Option pricing model–

24

Unquoted compulsorily convertible debentures –carried at fair value through profit or loss

Discounted cash flows method–

7

OthersDiscounted cash flows method, Market multiples
method, Option pricing model

169

152

19,706

20,649Total
Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments.

2.5.1 Details of investments
The details of investments in preference, equity and other instruments at March 31, 2023 and March 31, 2022 are as follows :(In ₹ crore, except otherwise stated)

Particulars

As at March 31,
2023

2022

–

–

53

150

26

22

–

23

Preference securities
Airviz, Inc.
2,89,695 (2,82,279) Series A Preferred Stock, fully paid-up, par value USD 0.001 each
Whoop, Inc.
1,10,59,340 (1,10,59,340) Series B Preferred Stock, fully paid-up, par value USD 0.0001 each
Nivetti Systems Private Limited
2,28,501 (2,28,501) Preferred Stock, fully paid-up, par value ₹1 each
Tidalscale, Inc.
36,74,269 (36,74,269) Series B Preferred Stock320

Infosys Integrated Annual Report 2022-23

Particulars

As at March 31,
2023

2022

114

20

193

215

–

–

2

2

1

–

3

2

–

7

–

7

Stellaris Venture Partners India

82

76

The House Fund II, L.P.

84

77

The House Fund III, L.P.

3–

Total investment in others

169

153

Total

365

377

Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
5,402 (5,402) Series A compulsorily convertible cumulative Preference shares of ₹10 each, fully paid-up
1,787 (Nil) Series B compulsorily convertible cumulative Preference shares of ₹10 each, fully paid-up
Total investment in preference securities
Equity instruments
Merasport Technologies Private Limited
2,420 (2,420) equity shares at ₹8,052 each, fully paid-up, par value ₹10 each
Global Innovation and Technology Alliance
15,000 (15,000) equity shares at ₹1,000 each, fully paid-up, par value ₹1,000 each
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)

22,600 (100) equity shares at ₹10, fully paid-up
Total investment in equity instruments
Compulsorily convertible debentures
Ideaforge Technology Limited (formerly Ideaforge Technology Private Limited)
Nil (3,886) compulsorily convertible debentures, fully paid-up, par value ₹19,300 each
Total investment in compulsorily convertible debentures
Others

2.6 Loans

2.7 Other financial assets(In ₹ crore)

Particulars

As at March 31,
2023

Particulars

As at March 31,2022

Non-current

2023

Other loans

Security deposits (1)4747

Rental deposits (1)

240

186

39

34

Unbilled revenues (1)#

1,185

695

39

34

Net investment in sublease ofright-of-use asset (1)

305

322

Restricted deposits

96

33

925

177

2,798

1,460

Loans credit impaired – Unsecured
Other loans(1) *Others (1)Loans to employees

2–Less: Allowance for credit
impairment(2)–

Total non-current other financial
assets––Current

39

34

Total non-current loans
Current
Loans considered good – Unsecured
Other loans

Security deposits (1)107Rental deposits (1)3258

Restricted deposits (1) *

2,348

2,177

Unbilled revenues

(1)#

289

248

Interest accrued but not due (1)Total current loans

289

248

Total loans

328

282

Foreign currency forward andoptions contracts (2) (3)Loans to employees

Infosys Integrated Annual Report 2022-23

2022

Non-current

Loans considered good – Unsecured
Loans to employees(In ₹ crore)

8,317

5,659

488

362

101

143
321

Consolidated Financial Statements
Particulars

2023
53

Others (1)Total other financial assets(1)

Financial assets carried at amortized
cost

(2)

Financial assets carried at fair value
through other comprehensive income

(3)

*

#

(In ₹ crore)2022

As at March 31,

Particulars

Net investment in sublease ofright of-use-asset (1)Total current other financial assets

2.8 Trade receivables

As at March 31,

50

2023

2022

Current

255

271

11,604
14,402

8,727
10,187

Trade receivable consideredgood – Unsecured

25,96523,252

10,044

Less: Allowance for expectedcredit loss

541

554

Financial assets carried at fair value
through profit or loss

14,30132
69

20

Trade receivable consideredgood – Unsecured

25,424

22,698123

Trade receivable – credit impaired
Unsecured

142

113

Less: Allowance for credit
impairment

142

113

Trade receivable – credit
impaired Unsecured––

25,424

22,698

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 andis due only after a passage of time.

Total trade receivables

The trade receivables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

Not due

Outstanding for following periods from due date of payment
Less than 6 6 months tomonths1 yearUndisputed trade receivables – considered
good
Undisputed trade receivables – credit
impaired
Disputed trade receivables – considered good
Disputed trade receivables – credit impaired

Less: Allowance for credit loss
Total trade receivables

322

1-2 years

2-3 years

More than
3 years

Total

18,397

7,501

58

3

4

2

25,965

17,394

5,561

230

11

35

21

23,252

14

7

2

4

69

38

134

–

1

3

62

34

4

104

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

3

5

8

–

–

–

4

–

5

9

18,411

7,508

60

7

76

45

26,107

17,394

5,562

233

77

69

30

23,365

–

–

–

–

–

–

683

–

–

–

–

–

–

667

–

–

–

–

–

–

25,424

–

–

–

–

–

–

22,698

Infosys Integrated Annual Report 2022-23

2.9 Cash and cash equivalents(In ₹ crore)

Particulars

As at March 31,2023

As at March 31,

Particulars

2022

Balances with banks

2023

2022

Withholding taxes and others

3,268

1,941

Prepaid expenses

2,745

1,996

Deferred contract cost

In current and deposit accounts
Cash on hand

10,026

13,942––

Cost of obtaining a contract–*

Cost of fulfillment

OthersOther receivables

Deposits with financial
institutions

2,147

3,530

Total cash and cash equivalents

12,173

17,472

Balances with banks in unpaid
dividend accounts

37

36

Deposit with more than 12 months
maturity

833

1,616

Balances with banks held as margin
money deposits against guarantees–

1Cash and cash equivalents as at March 31, 2023 andMarch 31, 2022 include restricted cash and bank balances of₹362 crore and ₹471 crore, respectively. The restrictions areprimarily on account of bank balances held by irrevocable trusts
controlled by the Company.
The deposits maintained by the Group with banks andfinancial institutions comprise time deposits, which can bewithdrawn by the Group at any point without prior notice or
penalty on the principal.

853

858

175

91

261

325

Total current other assets

14,476

11,313

Total other assets

16,794

13,342#

Classified as non-financial asset as the contractual right to consideration isdependent on completion of contractual milestones.

*

Includes technology assets taken over by the Group 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 transferredto the Group 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.
The Group has entered into financing arrangements with a third party forthese assets. As at March 31, 2023, the financial liability pertaining to sucharrangements amounts to ₹731 crore. This includes ₹118 crore settled
directly by the third party to the customer on behalf of the Group andaccordingly considered as non-cash transaction (Refer to Note 2.13).

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

2.11 Financial instruments
Accounting policy
2.11.1 Initial recognition

2.10 Other assets(In ₹ crore)

As at March 31,

Particulars

2023

2022

159

88

Withholding taxes and others

684

674

Unbilled revenues

264

246

Defined benefit plan assets

36

20

Prepaid expenses

332

99

191

593

Non-current
Capital advances
Advances other than capital advances
Others#Deferred contract cost
Cost of obtaining a contract *Cost of fulfillment

652

309

Total non-current other assets

2,318

2,029

Current

202

193

6,972

5,909

OthersUnbilled revenues #Infosys Integrated Annual Report 2022-23

2.11.2 Subsequent measurementa. 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 holdthe asset in order to collect contractual cash flows and thecontractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.
(ii) Financial assets carried at fair value through othercomprehensive income (FVOCI)Advances other than capital advances
Payment to vendors for supply ofgoods

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 recognizedat 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 issueof financial assets and financial liabilities, which are not at fairvalue through profit or loss, are added to the fair value on initialrecognition. Regular way purchase and sale of financial assets areaccounted for at trade date.

A financial asset is subsequently measured at fair value throughother 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 the323Consolidated Financial Statements
financial asset give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amountoutstanding. 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
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 costusing 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.
b. Derivative financial instruments
The Group holds derivative financial instruments, such as foreignexchange forward and option contracts, to mitigate the riskof changes in exchange rates on foreign currency exposures.
The counterparty for such 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 constitutehedges 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, oris so designated but is ineffective as per Ind AS 109, iscategorized as a financial asset or financial liability, at fair value
through profit or loss.
Derivatives not designated as hedges are recognized initially atfair value and attributable transaction costs are recognized in
net profit in the Consolidated Statement of Profit and Loss whenincurred. Subsequent to initial recognition, these derivatives aremeasured 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 berealized 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
forecasted cash transactions
When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value ofthe derivative is recognized in other comprehensive income andaccumulated 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 Statementof Profit and Loss. If the hedging instrument no longer meetsthe criteria for hedge accounting, then hedge accounting is
discontinued prospectively. If the hedging instrument expires
324

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 incash 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 theoccurrence of the related forecasted transaction. If the forecasted
transaction is no longer expected to occur, then the amountaccumulated in cash flow hedging reserve is reclassified to net
profit in the Consolidated Statement of Profit and Loss.
2.11.3 Derecognition of financial instruments
The Group derecognizes a financial asset when the contractual
rights to the cash flows from the financial asset expire orit transfers the financial asset and the transfer qualifies forderecognition under Ind AS 109. A financial liability (or a part of afinancial liability) is derecognized from the Group's Balance Sheet
when the obligation specified in the contract is discharged orcancelled or expires.
2.11.4 Fair value of financial instruments
In determining the fair value of its financial instruments, theGroup uses a variety of methods and assumptions that are basedon market conditions and risks existing at each reporting date.
The methods used to determine fair value include discounted
cash flow analysis, option pricing model, market multiples,available quoted market prices and dealer quotes. All methods ofassessing fair value result in general approximation of value, andsuch value may never actually be realized.
Refer to table 'Financial instruments by category' below for thedisclosure on carrying value and fair value of financial assets andliabilities. For financial assets and liabilities maturing within one
year from the Balance Sheet date and which are not carried at fairvalue, the carrying amounts approximates fair value due to theshort maturity of these instruments.
2.11.5 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 allowancefor trade receivables and unbilled revenues with no significant
financing component is measured at an amount equal tolifetime ECL. For all other financial assets, ECLs are measured at
an amount equal to the 12-month ECL, unless there has been asignificant increase in credit risk from initial recognition, in whichcase those are measured at lifetime ECL.
The Group determines the allowance for credit losses basedon historical loss experience adjusted to reflect current
and estimated future economic conditions. The Groupconsiders current and anticipated future economic
conditions relating to industries the Group deals with and thecountries where it operates.
The amount of ECL (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 loss or gain in
Consolidated Statement of Profit and Loss.

Infosys Integrated Annual Report 2022-23

Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31, 2023 are as follows :(In ₹ crore)

Particulars

Amortized Financial assets / liabilities Financial assets / liabilities
cost at fair value through profit at fair value through OCI
or loss

Total
carrying
value

Total fair
value

Designatedupon initialrecognition

Mandatory

Equityinstruments
designatedupon initialrecognition

Mandatory

12,173––––

12,173

12,173Equity and preference securities

–

–

–

196

–

196

196

Tax-free bonds and government
bonds

1,920

–

–

–

–

1,920

2,148(1)Liquid mutual fund units

–

–

975

–

–

975

975

Target maturity fund units

–

–

402

–

–

402

402

Non-convertible debentures

–

–

–

–

3,868

3,868

3,868

Government securities

–

–

–

–

7,632

7,632

7,632

Commercial paper

–

–

–

–

742

742

742

Certificates of deposit

–

–

–

–

3,574

3,574

3,574

AssetsCash and cash equivalents (Refer toNote 2.9)
Investments (Refer to Note 2.5)

Other investments

–

–

169

–

–

169

169

25,424––––25,42425,424Loans (Refer to Note 2.6)

328

–

–

–

–

328

328

Other financial assets(Refer to Note 2.7) (3)14,301

–

69

–

32

14,402

14,318(2)Total

54,146

–

1,615

196

15,84871,80571,949Trade payables

3,865

–

–

–

–

3,865

3,865

Lease liabilities (Refer to Note 2.21)

8,299

–

–

–

–

8,299

8,299

Financial liability under option
arrangements (Refer to Note 2.13)

–

–

600

–

–

600

600

17,35929,523

–
–

161
761

–
–

14
14

17,53430,29817,53430,298Trade receivables (Refer to Note 2.8)

Liabilities

Other financial liabilities(Refer to Note 2.13)
Total
(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 ₹84 crore(3)

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

Infosys Integrated Annual Report 2022-23

325Consolidated Financial Statements
The carrying value and fair value of financial instruments by categories as at March 31, 2022 were as follows :(In ₹ crore)

Particulars

Amortized Financial assets / liabilities Financial assets / liabilities
cost at fair value through profit
at fair value through OCI
or loss

Total
carrying
value

Total fair
value

Designatedupon initialrecognition

Mandatory

Equityinstruments
designatedupon initialrecognition

Mandatory

17,472––––

17,472

17,472Equity and preference securities

–

–

24

194

–

218

218

Compulsorily convertible
debentures

–

–

7

–

–

7

7

2,122

–

–

–

–

2,122

2,447(1)Liquid mutual fund units

–

–

2,012

–

–

2,012

2,012

Non-convertible debentures

–

–

–

–

4,213

4,213

4,213

Government securities

–

–

–

–

8,171

8,171

8,171

Certificates of deposit

–

–

–

–

3,429

3,429

3,429

Other investments

–

–

152

–

–

152

152

22,698––––22,69822,698

282

–

–

–

–

282

282

Other financial assets (Refer to Note2.7)(3)

10,044–123

20

10,187

10,096(2)Total

52,618

–

2,318

194

15,83370,963

71,197

Trade payables

4,134

–

–

–

–

4,134

4,134

Lease liabilities (Refer to Note 2.21)

5,474

–

–

–

–

5,474

5,474

Financial liability under option
arrangements (Refer to Note 2.13)

–

–

655

–

–

655

655

15,061
24,669

–
–

181
836

–
–

3
3

15,24525,50815,24525,508Assets:Cash and cash equivalents (Refer toNote 2.9)
Investments (Refer to Note 2.5)

Tax-free bonds and government
bonds

Trade receivables (Refer to Note 2.8)
Loans (Refer to Note 2.6)

Liabilities:

Other financial liabilities (Refer to Note
2.13)
Total
(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 ₹91 crore(3)

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

For trade receivables, 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).

326

Infosys Integrated Annual Report 2022-23

The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2023 is as follows :(In ₹ crore)

Particulars

As at March
31, 2023

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3975––

AssetsInvestments (Refer to Note 2.5)
Liquid mutual funds

975

Target maturity fund units

402

402

–

–

Tax-free bonds

2,120

1,331

789

–

Government bonds

28

28

–

–

Non-convertible debentures

3,868

1,793

2,075

–

Government securities

7,632

7,549

83

–

Equity instruments

3

–

–

3

Preference securities

193

–

–

193

Commercial paper

742

–

742

–

Certificates of deposit

3,574

–

3,574

–

Other investments

169

–

–

169

101

–

101

–

Derivative financial instruments loss on outstanding foreign exchange forward andoption contracts (Refer to Note 2.13)

78

–

78

–

Financial liability under option arrangements (Refer to Note 2.13)

600

–

–

600

Liability towards contingent consideration (Refer to Note 2.13)(1)

97

–

–

97

OthersDerivative financial instruments gain on outstanding foreign exchange forward
and option contracts (Refer to Note 2.7)
Liabilities

(1)

(1)

Discount rate ranges from 10% to 15%

During the year ended March 31, 2023, government securities and tax-free bonds of ₹383 crore was transferred from Level 2 to Level 1 offair value hierarchy, since these were valued based on quoted price. Further, non-convertible debentures of ₹1,611 crore were transferredfrom 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 measured at fair value on a recurring basis as at March 31, 2022 was as follows :(In ₹ crore)

Particulars

As at March
31, 2022

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3

AssetsInvestments (Refer to Note 2.5)
Liquid mutual funds

2,012

2,012

–

–

Tax-free bonds

2,425

1,238

1,187

–

Government bonds

22

22

–

–

Non-convertible debentures

4,213

3,736

477

–

Government securities

8,171

8,046

125

–

Equity instruments

2

–

–

2

Preference securities

216

–

–

216

Certificates of deposit

3,429

–

3,429

–

7

–

–

7

Compulsorily convertible debentures
Infosys Integrated Annual Report 2022-23

327

Consolidated Financial Statements
Particulars

As at March
31, 2022

Fair value measurement at end of thereporting period using
Level 1

Level 2

Level 3

152

–

–

152

143

–

143

–

Derivative financial instruments loss on outstanding foreign exchange forward
and option contracts (Refer to Note 2.13)

61

–

61

–

Financial liability under option arrangements (Refer to Note 2.13)

655

–

–

655

Liability towards contingent consideration (Refer to Note 2.13)(1)

123

–

–

123

Other investments
OthersDerivative financial instruments gain on outstanding foreign exchange
forward and option contracts (Refer to Note 2.7)
Liabilities

(1)

(1)

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

During the year ended March 31, 2022, tax-free bonds and nonconvertible debentures of ₹576 crore were transferred from Level
2 to Level 1 of fair value hierarchy, since these were valued basedon quoted price. Further, tax-free bonds and non-convertible
debentures of ₹965 crore was transferred from Level 1 to Level
2 of fair value hierarchy, since these were valued based onmarket observable inputs.
A one percentage point change in the unobservable inputs usedin fair valuation of Level 3 assets and liabilities does not have asignificant impact in its value.

Financial risk management
Financial risk factors
The Group's activities expose it to a variety of financial risks:market risk, credit risk and liquidity risk. The Group's primary
focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial
performance. The primary market risk to the Group is foreignexchange risk. The Group uses derivative financial instruments
to mitigate foreign exchange related risk exposures. The Group's

exposure to credit risk is influenced mainly by the individual
characteristic of each customer and the concentration of risk
from the top few customers.
Market risk
The Group operates internationally and a major portion of thebusiness is transacted in several currencies and consequently
the Group is exposed to foreign exchange risk through its sales
and services in the United States and elsewhere, and purchasesfrom overseas suppliers in various foreign currencies. The Groupholds 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 Group isalso exposed to foreign exchange risk arising on intercompany
transaction in foreign currencies. The exchange rate between
the Indian rupee and foreign currencies has changed
substantially in recent years and may fluctuate substantially inthe future. Consequently, the results of the Group’s operations
are adversely affected as the rupee appreciates / depreciates
against these currencies.

The foreign currency risk from financial assets and liabilities as at March 31, 2023 is as follows :(In ₹ crore)

Particulars

US DollarEuro

UK PoundSterling

Australian
DollarOther
currencies

Total

Net financial assets

20,777

7,459

1,816

1,809

2,604

34,465

Net financial liabilities(12,148)(3,734)

(737)

(953)

(2,208)(19,780)

Total

8,629

3,725

1,079

856

396

14,685

The foreign currency risk from financial assets and liabilities as at March 31, 2022 was as follows :(In ₹ crore)

Particulars

US DollarEuro

UK PoundSterling

Australian
DollarOther
currencies

Total

Net financial assets

18,224

4,976

1,510

1,350

2,115

28,175

Net financial liabilities(9,205)(3,158)

(666)

(975)

(1,806)(15,810)

Total

9,019

1,818

844

375

309

12,365

328

Infosys Integrated Annual Report 2022-23

Sensitivity analysis between Indian rupee and US Dollar
Particulars

Year ended March 31,

Impact on the Group's incremental operating margins

2023

2022

0.44%

0.46%

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.
Derivative financial instruments
The Group holds derivative financial instruments such as foreign currency 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. These derivative financial
instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly
observable in the marketplace.
The details in respect of outstanding foreign currency forward and option contracts are as follows :Particulars

As at March 31, 2023

As at March 31, 2023

In million

In ₹ crore

In million

In ₹ crore

–

–

8

67

In Australian Dollar

140

770

185

1,050

In Euro

325

2,907

280

2,358

In UK Pound Sterling

55

559

32

318

In Australian Dollar

10

55

–

–

In Brazilian Real

–

–

6

8

In Canadian Dollar

–

–

34

205

In Chinese Yuan

41

49

38

45

In Czech Koruna

364

134

296

101

In Euro

316

2,825

297

2,501

In New Zealand Dollar

30

154

20

105

In Norwegian Krone

100

79

80

70

In Singapore Dollar

204

1,245

252

1,366

Derivatives designated as cash flow hedges
Forward contracts
In EuroOption contracts

Other derivatives
Forward contracts

In Swiss Franc

1

8

15

123

1,670

13,726

1,166

8,853

In UK Pound Sterling

86

877

65

646

In South African rand

85

39

45

24

In US Dollar

Option contracts
In Australian Dollar

30

165

–

–

In Euro

160

1,431

81

682

In UK Pound Sterling

15

153

–

–

In US Dollar

300

2,465

677

5,131

Total forward and option contracts

Infosys Integrated Annual Report 2022-23

27,641

23,653329

Consolidated Financial Statements
The foreign exchange forward and option contracts mature
within 12 months. The table below analyses the derivative
financial instruments into relevant maturity groupings based on
the remaining period as at the Balance Sheet date:(In ₹ crore)

Particulars

As at March 31,
2023

2022

Not later than one month

13,155

6,237

Later than one month and not later
than three months

11,15912,444

3,327
27,641

4,972
23,653Later than three months and not later
than one year
Total

If the hedge ratio for risk management purposes is no longer
optimal but the risk management objective remains unchanged
and the hedge continues to qualify for hedge accounting, thehedge relationship will be rebalanced by adjusting either thevolume of the hedging instrument or the volume of the hedged
item so that the hedge ratio aligns with the ratio used for risk
management purposes. Any hedge ineffectiveness is calculated
and accounted for in the Consolidated Statement of Profit andLoss at the time of the hedge relationship rebalancing.
The reconciliation of cash flow hedge reserve for the years ended
March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

During the years ended March 31, 2023 and March 31, 2022, theGroup has designated certain foreign exchange forward andoption contracts as cash flow hedges to mitigate the risk offoreign exchange exposure on highly probable forecasted cashtransactions. The related hedge transactions for balance in cash
flow hedges as of March 31, 2023 are expected to occur and will
be reclassified to the Consolidated Statement of Profit and Loss
within three months.
The Group determines the existence of an economic relationshipbetween the hedging instrument and the hedged item basedon the currency, amount and timing of its forecasted cash flows.
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectivenessassessments to ensure that an economic relationship exists
between the hedged item and hedging instrument, including
whether the hedging instrument is expected to offset changes incash flows of hedged items.

Year ended March 31,

Particulars

2023

2022

Balance at the beginning of the year2

10

Gain / (Loss) recognised in othercomprehensive income during the
year

90

102

Amount reclassified to profit or loss
during the year

(99)

(113)

Tax impact on above

2

3

Balance at the end of the period(5)2Gain / (Loss)

The Group offsets a financial asset and a financial liability when it
currently has a legally enforceable right to set off the recognizedamounts and the Group intends either to settle on a net basis, orto realise the asset and settle the liability simultaneously.

The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows :(In ₹ crore)

Particulars

As at March 31, 2023

As at March 31, 2022

Derivative
Derivative
financial asset financial liability

Derivative
Derivative
financial asset financial liability

Gross amount of recognized financial asset / liability

127

(104)

179

(97)

Amount set off

(26)

26

(36)

36

Net amount presented in Balance Sheet

101

(78)

143

(61)

Credit risk
Credit risk refers to the risk of default on its obligation by
the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily
from trade receivables amounting to ₹25,424 crore and ₹22,698
crore as at March 31, 2023 and March 31, 2022, respectively andunbilled revenues amounting to ₹16,738 crore and ₹12,509
crore as at March 31, 2023 and March 31, 2022, respectively.
Trade receivables and unbilled revenues are typically unsecured
and are derived from revenues from customers primarily

330

located in the US. Credit risk has always been managed by theGroup through credit approvals, establishing credit limits andcontinuously monitoring the creditworthiness of customers
to which the Group grants credit terms in the normal courseof business. The Group uses the expected credit loss model
to assess any required allowances; and uses a provision matrix
to compute the expected credit loss allowance for tradereceivables and unbilled revenues. This matrix takes into
account credit reports and other related credit information to
the extent available.

Infosys Integrated Annual Report 2022-23

The Group's exposure to credit risk is influenced mainlyby the individual characteristic of each customer and theconcentration of risk from the top few customers. Exposure
to customers is diversified and there is no single customer
contributing more than 10% of outstanding trade receivables
and unbilled revenues.

Days Sales Outstanding was 62 days and 67 days as ofMarch 31, 2023 and March 31, 2022, respectively.

The details in respect of percentage of revenues generated from the
top five customers and top ten customers are as follows :(In %)

Particulars

Year ended March 31,
2023

2022

Revenue from top five customers

12.7

11.4

Revenue from top ten customers

20.2

19.3

Credit risk exposure
The Group’s credit period generally ranges from 30-75 days.
The allowance for lifetime ECL on customer balances for the years
ended March 31, 2023 and March 31, 2022 was ₹228 crore and₹143 crore, respectively.
The movement in credit loss allowance on customer
balance is as follows :Year ended March 31,
2023

2022

Balance at the beginning

858

752

Impairment loss recognized /(reversed), net

228

143

Amounts written off

(166)

(62)

Translation differences

41

25

Balance at the end

961

858

Credit exposure(In ₹ crore)

Particulars

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, target maturity fundunits, tax-free bonds, certificates of deposit, commercial paper,
treasury bills, government securities, quoted bonds issued bygovernment and quasi-government organizations and nonconvertible debentures. The Group invests after consideringcounterparty 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 the Group's
risk management program.
Liquidity risk
Liquidity risk is defined as the risk that the Group will not be able
to settle or meet its obligations on time.

(In ₹ crore)

Particulars

Credit risk on cash and cash equivalents is limited as the Groupgenerally invests in deposits with banks and financial institutions
with high ratings, assigned by international and domestic credit
rating agencies. Ratings are monitored periodically and theGroup has considered the latest available credit ratings as at thedate of approval of these Consolidated financial statements.

As at March 31,
2023

2022

Trade receivables

25,424

22,698Unbilled revenues

16,73812,509The Group's principal sources of liquidity are cash and cash
equivalents and the cash flow that is generated from operations.
The Group has no outstanding borrowings. The Group
believes that the working capital is sufficient to meet its
current requirements.
As at March 31, 2023, the Group had a working capital of ₹31,695
crore including cash and cash equivalents of ₹12,173 crore
and current investments of ₹6,909 crore. As at March 31, 2022,
the Group had a working capital of ₹33,582 crore including
cash and cash equivalents of ₹17,472 crore and current
investments of ₹6,673 crore.
As at March 31, 2023 and March 31, 2022, the outstanding
compensated absences were ₹2,482 crore and ₹2,274 crore,
respectively, which have been substantially funded. Accordingly,
no liquidity risk is perceived.

The details regarding the contractual maturities of significant financial liabilities as at March 31, 2023 are as follows :(In ₹ crore)

Particulars
Trade payables

Less than 1 year

1-2 years

2-4 years

4-7 years

Total

3,865

–

–

–

3,865

Financial liability under option arrangements (Refer to Note 2.13)

600

–

–

–

600

Other financial liabilities (excluding liability towards contingent
consideration) on an undiscounted basis (Refer to Note 2.13)

15,403

1,532

438

13

17,386

Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)

101

–

–

–

101

Infosys Integrated Annual Report 2022-23

331

Consolidated Financial Statements
The details regarding the contractual maturities of significant financial liabilities as at March 31, 2022 were as follows :(In ₹ crore)

Particulars

Less than 1 year

Trade payables

1-2 years

2-4 years

4-7 years

Total

4,134

–

–

–

4,134

Financial liability under option arrangements (Refer to Note 2.13)

–

72

80

503

655

Other financial liabilities (excluding liability towards contingent
consideration) (Refer to Note 2.13)

13,539

1,089

457

10

15,095

Liability towards contingent consideration on an undiscounted
basis (Refer to Note 2.13)

68

25

39

–

132

2.12 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 fromequity, 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, theamount received is recognized as an increase in equity, and theresulting 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 thenominal value of the shares bought back as an appropriationfrom general reserve / retained earnings.
Retained earnings
Retained earnings represent the amount of accumulated
earnings of the Group.
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 fromshare premium account.
Share options outstanding account
The share options outstanding account is used to record the fairvalue of equity-settled, share-based payment transactions with
employees. The amounts recorded in share options outstanding
account are transferred to securities premium, upon exercise ofstock options, and transferred to general reserve on account ofstock options not exercised by employees.
Special Economic Zone Re-investment Reserve
The Special Economic Zone Re-investment Reserve has beencreated out of the profit of the eligible SEZ unit in terms of the332

provisions of Sec 10AA (1)(ii) of Income-tax Act, 1961. The reserve
should be utilized by the Company for acquiring new plantand machinery for the purpose of its business in terms of theprovisions 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 fairvalue 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 otherthan the 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 ofthe derivative is recognized in other comprehensive income andaccumulated 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 andLoss upon the occurrence of the related forecasted transaction.

2.12.1 Equity share capital(In ₹ crore, except as otherwise stated)

Particulars

As at March 31,
2023

2022

2,400

2,400

2,069

2,098

2,069

2,098

Authorized
Equity shares, ₹5 par value
480,00,00,000 (480,00,00,000) equity
sharesIssued, subscribed and paid-up
Equity shares, ₹5 par value (1)413,63,87,925 (419,30,12,929) equity
shares fully paid-up (2)Note : Forfeited shares amounted to ₹ 1,500 (₹ 1,500)(1)Refer to Note 2.23 for details of basic and diluted shares(2)

Net of treasury shares 1,21,72,119 (1,37,25,712)

Infosys Integrated Annual Report 2022-23

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 byAmerican 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 assetsof 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 infavor of the beneficiaries.
For details of shares reserved for issue under the employee stock
option plan of the Company refer to the note below.
In the period of five years immediately preceding
March 31, 2023:
Bonus issue
The Company has allotted 218,41,91,490 fully paid-up shares offace value ₹5 each during the quarter ended September 30, 2018
pursuant to bonus issue approved by the shareholders throughpostal ballot. The bonus shares were issued by capitalizationof profits transferred from general reserve. Bonus share of one
equity share for every equity share held, and a bonus issue, viz., astock dividend of one American Depositary Share (ADS) for every
ADS held, respectively, has been allotted. Consequently, theratio of equity shares underlying the ADSs held by an American
Depositary Receipt holder remains unchanged. Options granted
under the stock option plan have been adjusted for bonus shares
wherever appropriate.
The bonus shares once allotted shall rank pari passu in all
respects and carry the same rights as the existing equity
shareholders and shall be entitled to participate in full, inany dividend and other corporate action, recommended anddeclared after the new equity shares are allotted.
BuybackIn the period of five years immediately preceding March 31, 2023,
including the buyback completed in February 2023 the Company
had purchased and extinguished a total of 22,67,52,951 fully paidup equity shares of face value ₹5 each from the stock exchange.
The Company has only one class of equity shares.
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 Statementof Cash Flows prepared under IFRS. Dividend and buyback
include applicable taxes.

Infosys Integrated Annual Report 2022-23

Buyback completed in February 2023
In line with the Capital Allocation Policy, the Board, at its meeting
held on October 13, 2022, approved the buyback of equity
shares, from the open market route through the Indian stock
exchanges, amounting to ₹9,300 crore (Maximum Buyback Size,excluding buyback tax) at a price not exceeding ₹1,850 per share(Maximum Buyback Price), subject to shareholders' approval by
way of Postal Ballot.
The shareholders approved the proposal of buyback of equity
shares recommended by its Board of Directors by way of
e-voting on the postal ballot, the results of which were declaredon December 3, 2022. The buyback was offered to all equity
shareholders of the Company (other than the Promoters, thePromoter Group and Persons in Control of the Company) under
the open market route through the stock exchange. The buybackof equity shares through the stock exchange commenced on
December 7, 2022 and was completed on February 13, 2023.
During this buyback period, the Company had purchased andextinguished a total of 6,04,26,348 equity shares from the stock
exchange at a volume weighted average buyback price of₹1,539.06 per equity share comprising 1.44% of the pre-buyback
paid-up equity share capital of the Company. The buyback
resulted in a cash outflow of ₹9,300 crore (excluding transaction
costs and tax on buyback). The Company funded the buybackfrom its free reserves including Securities Premium as explainedin Section 68 of the Companies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2023, the Company has created ‘Capital Redemption
Reserve’ of ₹30 crore equal to the nominal value of theshares bought back as an appropriation from general reserveand retained earnings.
Buyback completed in September 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 equity shareholders of theCompany (other than the Promoters, the Promoter Group andPersons in Control of the Company) under the open market
route through the stock exchange. The buyback of equity sharesthrough the stock exchange commenced on June 25, 2021 andwas completed on September 8, 2021. During this buyback
period, the Company had purchased and extinguished a total of
5,58,07,337 equity shares from the stock exchange at a volume
weighted average buy back price of ₹1,648.53 per equity sharecomprising 1.31% of the pre buyback paid-up equity sharecapital of the Company. The buyback resulted in a cash outflow
of ₹9,200 crore (excluding transaction costs and tax on buyback).

333

Consolidated Financial Statements
The Company funded the buyback from its free reserves
including Securities Premium as explained in Section 68 of theCompanies Act, 2013.
In accordance with Section 69 of the Companies Act, 2013, as at
March 31, 2022, the Company has created ‘Capital Redemption
Reserve’ of ₹28 crore equal to the nominal value of the sharesbought 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, theCompany may adjust the amount of dividend payment, return
capital to shareholders, issue new shares or buy back issued
shares. As of March 31, 2023, the Company has only one class ofequity shares and has no debt. Consequent to the above capital
structure, there are no externally imposed capital requirements.

2.12.2 Shareholding of promoter
Shares held by promoters at March 31, 2023:
Promoter name

No. of shares% of total shares% Change during the year

Sudha Gopalakrishnan

9,53,57,000

2.30

–

Rohan Murty

6,08,12,892

1.47

–

S Gopalakrishnan

4,18,53,808

1.01

–

Nandan M Nilekani

4,07,83,162

0.98

–

Akshata Murty

3,89,57,096

0.94

–

Asha Dinesh

3,85,79,304

0.93

–

Sudha N Murty

3,45,50,626

0.83

–

Rohini Nilekani

3,43,35,092

0.83

–

Dinesh Krishnaswamy

3,24,79,590

0.78

–

Shreyas Shibulal

2,37,04,350

0.57

–

N. R. Narayana Murthy

1,66,45,638

0.40

–

Nihar Nilekani

1,26,77,752

0.31

–

Janhavi Nilekani

85,89,721

0.21–

Kumari Shibulal

52,48,965

0.13–

Deeksha Dinesh

76,46,684

0.18–

Divya Dinesh

76,46,684

0.18–

Meghana Gopalakrishnan

48,34,928

0.12–

Shruti Shibulal

27,37,538

0.07–

S. D. Shibulal

58,14,733

0.14–

1,37,36,226

0.33

–

69,67,934

0.17–

Promoters Group
Gaurav Manchanda
Milan Shibulal Manchanda
Nikita Shibulal Manchanda

69,67,934

0.17–

Bhairavi Madhusudhan Shibulal

66,79,240

0.16–

Shray Chandra

7,19,424

0.02–

Tanush Nilekani Chandra

33,56,017

0.08–

The percentage shareholding above has been computed considering the outstanding number of shares of 414,85,60,044
as at March 31, 2023.
2.12.3 Dividend
The final dividend on shares is recorded as a liability on thedate of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by theCompany's Board of Directors. Income tax consequencesof dividends on financial instruments classified as equity
will be recognized according to where the entity originally334

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 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.
Infosys Integrated Annual Report 2022-23

The amount of per share dividend recognized as distribution
to equity shareholders in accordance with Companies Act
2013 is as follows :(In ₹)

Particulars

Year ended March 31,
2023

2022

Final dividend for fiscal 2021

–

15.00

Interim dividend for fiscal 2022

–

15.00

Final dividend for fiscal 2022

16.00

–

Interim dividend for fiscal 2023

16.50

–

During the year ended March 31, 2023, on account of the final
dividend for fiscal 2022 and interim dividend for fiscal 2023,
the Company has incurred a net cash outflow of ₹13,632 crore(excluding dividend paid on treasury shares).
The Board of Directors in their meeting held on April 13, 2023
recommended a final dividend of ₹17.50 per equity share for thefinancial year ended March 31, 2023. This payment is subject tothe approval of shareholders in the AGM of the Company to beheld on June 28, 2023 and if approved, would result in a net cash
outflow of approximately ₹7,239 crore (excluding dividend paidon treasury shares).

The details of shareholders holding more than 5% shares as at March 31, 2023 and March 31, 2022 are as follows :Name of the shareholder

As at March 31, 2023
Number of shares

As at March 31, 2022

% held Number of shares% heldDeutsche Bank Trust Company Americas (Depository of ADR's legal
ownership)

50,57,90,851

12.19

66,63,70,669

15.84Life Insurance Corporation of India

29,82,44,977

7.19

24,33,47,641

5.78

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2023 andMarch 31, 2022 are as follows :(In ₹ crore, except as stated otherwise)

Particulars
As at the beginning of the period
Add: Shares issued on exercise of employee stock options

As at March 31, 2023

As at March 31, 2022

Number of shares

AmountNumber of shares

Amount419,30,12,929

2,098

424,51,46,114

2,124

38,01,344

1

36,74,152

2

Less: Shares bought back

6,04,26,348

30

5,58,07,337

28

As at the end of the period

413,63,87,925

2,069

419,30,12,929

2,098

2.12.4 Employee Stock Option Plan (ESOP)
Accounting policy
The Group recognizes compensation expense relating to sharebased 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 eachseparately vesting portion of the award as if the award wasin-substance, multiple awards with a corresponding increase toshare 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 toeligible employees of the Company and its subsidiaries underthe 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 ofdefined annual performance parameters as determined by theadministrator (Nomination and Remuneration Committee).
Infosys Integrated Annual Report 2022-23

The performance parameters will be based on a combination ofrelative 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 sharesto vest based on performance. These instruments will generally
vest between a minimum of one to maximum of three 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 employeesof the Company and its subsidiaries under 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). These instruments will generally vest over a
period of 4 years. The plan numbers mentioned above are further
adjusted with the September 2018 bonus issue.
The equity-settled and cash-settled RSUs and stock options
would vest generally over a period of four years and shall be
exercisable within the period as approved by the Nomination
335

Consolidated Financial Statements
and Remuneration Committee (NARC). The exercise price of
the RSUs will be equal to the par value of the shares and theexercise price of the stock options would be the market price ason the date of grant.

The controlled trust holds 1,21,72,119 and 1,37,25,712 shares as
at March 31, 2023 and March 31, 2022, respectively, under the2015 Plan. Out of these shares, 2,00,000 equity shares each havebeen earmarked for welfare activities of the employees as at
March 31, 2023 and March 31, 2022.

The summary of grants during the years ended March 31, 2023 and March 31, 2022 is as follows :Particulars

2019 Plan

2015 Plan

Year ended March 31,

Year ended March 31,

2023

2022

2023

2022

Equity-settled RSUs
Key Management Personnel (KMP)

2,10,643

1,48,762

3,67,479

2,84,543

Employees other than KMP

37,04,014

27,01,867

17,84,975

13,05,880

39,14,657 28,50,629

21,52,454 15,90,423

Cash-settled RSUs
KMP–

Employees other than KMP
Total Grants

Based on the recommendations of the Board and the approval of
the shareholders at the AGM held on June 25, 2022, Salil Parekh
has been reappointed as the CEO and MD of the Company for aterm commencing on July 1, 2022 and ending on March 31, 2027.
The remuneration is approved by the shareholders in the AGM.
The revised employment agreement is effective July 1, 2022.
Under the 2015 Plan
The Board, on April 13, 2022, based on the recommendations of
the Nomination and Remuneration Committee, in accordancewith the terms of his employment agreement effective till
June 30, 2022, approved the grant of performance-based RSUs offair value of ₹13 crore for fiscal 2023 under the 2015 Plan. These
RSUs will vest in line with the employment agreement based onachievement of certain performance targets. Accordingly, 84,361
performance based RSU’s were granted effective May 2, 2022.
Further, in line with the shareholders approval and revised
employment contract which is effective July 1, 2022, theBoard, on July 24, 2022, based on the recommendations of theNomination and Remuneration Committee:
•

•

336

Approved the grant of performance-based RSUs (Annual
performance equity grant) of fair value of ₹21.75 crore
for fiscal 2023 under the 2015 Plan. These RSUs willvest in line with the employment agreement based onachievement of certain performance targets. Accordingly,
140,228 performance based RSUs were granted effective
August 1, 2022.
Approved the performance-based grant of RSUs (annual
performance equity ESG grant) of fair value of ₹2 crore forfiscal 2023 under the 2015 Plan. These RSUs will vest in linewith the employment agreement based on achievement ofcertain environment, social and governance milestones as

–

–

–

–

92,40049,960––92,40049,96039,14,657 28,50,629 22,44,854 16,40,383

Notes on grants to KMP:
CEO & MD–•

determined by the Board. Accordingly, 12,894 performancebased RSUs were granted effective August 1, 2022.
Approved the performance-based grant of RSUs (Annual
performance Equity TSR grant) of fair value of ₹5 crore forfiscal 2023 under the 2015 Plan. These RSUs will vest in linewith the employment agreement based on Company’s
performance on cumulative relative TSR over the years and as
determined by the Board. Accordingly, 32,236 performancebased RSUs were granted effective August 1, 2022.

For the above RSUs, the grant date in accordance with Ind AS 102,
Share-based payment is July 1, 2022.
Further, in accordance with the employee agreement which
has been approved by the shareholders, the CEO is eligible toreceive an annual grant of RSUs of fair value ₹3 crore which
will vest overtime in three equal annual installments upon thecompletion of each year of service from the respective grant
date. Accordingly, an annual time-based grant of 19,341 RSUs wasmade effective February 1, 2023 for fiscal 2023.
Though the annual time-based grants and annual performance
equity TSR grant for the remaining employment term endingon March 31, 2027 have not been granted as of March 31, 2023,
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 payment.
Under the 2019 Plan
The Board, on April 13, 2022, based on the recommendationsof the Nomination and Remuneration Committee, approved aperformance-based grant of RSUs amounting to ₹10 crore forfiscal 2023 under the 2019 Plan. These RSUs will vest in line withthe employment agreement effective till June 30, 2022 based onachievement of certain performance targets. Accordingly, 64,893
performance-based RSUs were granted effective May 2, 2022.
Infosys Integrated Annual Report 2022-23

Other KMP

Under the 2019 Plan

Under the 2015 Plan

During the year ended March 31, 2023, based onrecommendations of the Nomination and Remuneration
Committee, the Board approved performance-based grants of
1,45,750 RSUs to other KMPs under the 2019 Plan. These RSUs
will vest over three years based on achievement of certain
performance targets.

During the year ended March 31, 2023, based onrecommendations of the Nomination and Remuneration
Committee, the Board approved 66,872 time-based RSUs and11,547 performance-based RSUs to other KMP under the 2015
Plan. Time-based RSUs will vest over four years and performancebased RSUs will vest over one to three years based on certain
performance targets.
The break-up of employee stock compensation expense is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Granted to:
KMP#

49

65

Employees other than KMP

470

350

Total (1)

519

415

5

22

(1)

#

Cash-settled stock compensation expense included in the above
Includes reversal of employee stock compensation expense on account of resignation / retirement of key management personnel.

The activity in the 2015 and 2019 Plan for equity-settled, share-based payment transactions during the years ended March 31, 2023 andMarch 31, 2022 is as follows :Particulars

Year ended March 31, 2023

Year ended March 31, 2022

Shares arisingout of options

Weighted average
exercise price (₹)

Shares arisingout of options

Weighted average
exercise price (₹)

62,32,975

4.82

80,47,240

4.52

2015 Plan: RSU
Outstanding at the beginning
Granted21,52,454

5.00

15,90,423

5.00

Exercised

21,05,904

4.50

25,69,983

4.07

8,71,507

4.93

8,34,705

4.63

Outstanding at the end

54,08,018

5.00

62,32,975

4.82

Exercisable at the end

7,87,976

4.97

6,53,775

4.51

7,00,844

557

10,49,456

535

Forfeited and expired

2015 Plan: Employee Stock Options (ESOPs)
Outstanding at the beginning
Granted

–

–

–

–

Exercised

5,66,814

596

3,48,612

529

–

–

–

–

Outstanding at the end

1,34,030

529

7,00,844

557

Exercisable at the end

1,34,030

529

7,00,844

557

Outstanding at the beginning

49,58,938

5.00

30,50,573

5.00

Granted39,14,657

5.00

28,50,629

5.00

Exercised

11,28,626

5.00

7,55,557

5.00

Forfeited and expired

5,22,931

5.00

1,86,707

5.00

Outstanding at the end

72,22,038

5.00

49,58,938

5.00

Exercisable at the end

13,52,150

5.00

6,92,638

5.00

Forfeited and expired

2019 Plan: RSU

Infosys Integrated Annual Report 2022-23

337

Consolidated Financial Statements
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2015 Planon the date of exercise was ₹1,515 and ₹1,705, respectively.
During the years ended March 31, 2023 and March 31, 2022, the weighted average share price of options exercised under the 2019 Planon the date of exercise was ₹1,485 and ₹1,560, respectively.
The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2023 is as follows :Range of exercise prices per
share (₹)

0 - 5 (RSU)

2019 Plan – Options outstanding

2015 Plan – Options outstanding

No. of sharesarising out of
options

Weighted
averageremaining
contractual life

Weighted
average
exercise price(₹)

No. of sharesarising out of
options

Weighted
averageremaining
contractual life

Weighted
average
exercise price(₹)

72,22,038

1.33

5.00

54,08,018

1.49

5.00

–

–

–

1,34,030

1.77

529

450 - 630 (ESOP)The summary of information about equity-settled RSUs and ESOPs outstanding as at March 31, 2022 was as follows :Range of exercise prices per
share (₹)

0 - 5 (RSU)

2019 Plan – Options outstanding

2015 Plan – Options outstanding

No. of sharesarising out of
options

Weighted
averageremaining
contractual life

Weighted
average
exercise price(₹)

No. of sharesarising out of
options

49,58,938

1.43

5.00

–

–

–

450 - 600 (ESOP)

Weighted
averageremaining
contractual life

Weighted
average
exercise price(₹)

62,32,975

1.47

4.82

7,00,844

0.65

557

As at March 31, 2023 and March 31, 2022, 2,24,924 and 2,65,561 cash-settled options were outstanding, respectively. The carrying value of
liability towards cash-settled, share-based payments was ₹4 crore and ₹13 crore as at March 31, 2023 and March 31, 2022, respectively.
The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options andMonte 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 ofthe observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of theoptions. 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 2023 Equity
shares–RSU

Fiscal 2023–ADS– Fiscal 2022–Equity
RSU
shares–RSU

Fiscal 2022–ADS–RSU

Weighted average share price (₹) / ($ ADS)

1,525

18.08

1,791

24.45

Exercise price (₹) / ($ ADS)

5.00

0.07

5.00

0.07

Expected volatility (%)

23-32

27-34

20-35

25-36

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 (%)
Weighted average fair value as on grant date (₹) / ($ ADS)

5-7

2-5

4-6

1-3

1,210

13.69

1,548

20.82

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.

338

Infosys Integrated Annual Report 2022-23

2.13 Other financial liabilities(In ₹ crore)

Particulars

Particulars

As at March 31,
2023

Accrued expenses (1)

5

8

1,628

946

Compensated absences

83

92

Financial liability under option
arrangements (2)#–655

Payable for acquisition of business- Contingent consideration (2)

–

56

342

580

2,058

2,337

37

36

Accrued compensation toemployees (1)

4,174

4,061

Accrued expenses (1)

7,802

7,476

Retention monies (1)20

13

Payable for acquisition of business– Contingent consideration (2)97

67

Payable by controlled trusts (1)

211

211

2,399

2,182

Financial liability under option
arrangements (2)#600–

Foreign currency forward andoptions contracts (2)(3)78

61

Capital creditors

(1)

674

431

Other payables (1)(4)Other payables (1)(4)
Total non-current other financial
liabilities

OthersCompensated absences

17,35915,061(2)

Financial liability carried at fair value
through profit or loss

761

836

(3)

Financial liability carried at fair value
through other comprehensive income

14

3

101

132

Contingent consideration onundiscounted basis(4)

Deferred contract cost (Refer to Note 2.10) includes technology assets
taken over by the Group from a customer as a part of transformation
project, which is not considered as distinct goods or services and thecontrol related to the assets is not transferred to the Group in accordancewith 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. The Group has enteredinto financing arrangements with a third party for these assets. As at
March 31, 2023, the financial liability pertaining to such arrangements
amounts to ₹731 crore. During the year ended March 31, 2023, ₹118 crore
was settled directly by the third party to the customer on behalf of theGroup and accordingly considered as non-cash transaction.

#

Represents liability related to options issued by the Group over the noncontrolling interests in its subsidiaries

Current
Unpaid dividends (1)

2022

2022

Others
Accrued compensation toemployees (1)2023
Financial liability carried at amortized
cost

(1)

Non-current

As at March 31,

Accrued expenses primarily relates to cost of technical subcontractors, telecommunication charges, legal and professionalcharges, brand building expenses, overseas travel expenses
and office maintenance.

2.14 Trade payables

2,466

1,299

Total current other financial
liabilities

18,55815,837

Total other financial liabilities

20,616

18,174(In ₹ crore)

Particulars

As at March 31,
2023

2022

Trade payables

3,865

4,134

Total trade payables

3,865

4,134

The trade payables ageing schedule for the years ended as on March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars
Trade payables
Total trade payables

Infosys Integrated Annual Report 2022-23

Not due Outstanding for following periods from due date of payment

Total

Less than 1 year

1-2 years

2-3 years More than 3 years

3,040

825

–

–

–

3,865

3,299

835

–

–

–

4,134

3,040

825

–

–

–

3,865

3,299

835

–

–

–

4,134

339

Consolidated Financial Statements
Relationship with struck off companies for the year ending March 31, 2022 was as follows :Name of struck off company

Nature oftransactions

Transactions during Balance outstanding Relationship with thethe year ended at the end of the year struck off company,
March 31, 2022 as at March 31, 2022 if any, to be disclosed

Compulease Networks Private Limited

Payables–*–VendorMysodet Private Limited

Payables–*–Vendor*Less than ₹1 crore

There are no transactions with struck off companies for the year ending March 31, 2023.

2.15 Other liabilities

b. Onerous contracts(In ₹ crore)

Particulars

As at March 31,
2023

2022

Deferred income – government
grants4364

Accrued defined benefit liability

Non-current
Others445

367

Deferred income

6

9

Others

6

11

500

451

7,163

6,324

Total non-current other liabilities
Current
Unearned revenue
OthersWithholding taxes and others

2,834

Accrued defined benefit liability

45Deferred income – government
grants29

11

OthersTotal other liabilities2

4

10,83011,330

9,178
9,629

2.16 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 timevalue 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 ona periodic basis for any material changes in assumptions andlikelihood of occurrence.
340

Provision for post-sales client support and other provisions(In ₹ crore)

Particulars

As at March 31,
2023

2022

1,307
1,307

975
975

Current
3,632

Total current other liabilities

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. Provisions for estimated losses, ifany, on incomplete contracts are recorded in the period in whichsuch losses become probable based on the estimated efforts or
costs to complete the contract. The provision is measured at thepresent value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with thecontract. Before a provision is established the Group recognizes
any impairment loss on the assets associated with that contract.

OthersPost-sales client support andothersTotal provisions

The movement in the provision for post-sales client
support is as follows :(In ₹ crore)

Particulars

Year ended
March 31, 2023

Balance at the beginning935

Impact on adoption of amendment to Ind AS 37

19

Provision recognized / (reversed)

456

Provision utilized

(142)
39

Translation difference
Balance at the end

1,307

Provision for post-sales client support and other provisions
majorly represents costs associated with providing sales support
services which are accrued at the time of recognition of revenues
and are expected to be utilized over a period of one year.
Provision for post-sales client support and other provisions
is included in cost of sales in the condensed Consolidated
Statement of Profit and Loss.
Infosys Integrated Annual Report 2022-23

2.17 Income taxes
Accounting policy
Income tax expense comprises current and deferred income
tax. Income tax expense is recognized in net profit in theConsolidated Statement of Profit and Loss, except to the extent
that it relates to items recognized directly in equity, in whichcase it is recognized in equity or other comprehensive income.
Current income tax for current and prior periods is recognizedat the amount expected to be paid to or recovered from thetax authorities, using the tax rates and tax laws that have beenenacted 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 ofassets and liabilities and their carrying amounts in the financial
statements except when the deferred income tax arises fromthe initial recognition of goodwill or an asset or liability in atransaction that is not a business combination and affects
neither accounting nor taxable profit or loss at the time of thetransaction. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probablethat 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 totaxable 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 isrecognized as income or expense in the period that includes
the enactment or the substantive enactment date. A deferredincome tax asset is recognized to the extent that it is probablethat 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 thatthe earnings of the subsidiary or branch will not be distributed in
the foreseeable future.
The Group offsets current tax assets and current tax liabilities;
deferred tax assets and deferred tax liabilities; where it has alegally 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. 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 is as follows:(In ₹ crore)

Particulars
Current taxes
Deferred taxes
Income tax expense

Infosys Integrated Annual Report 2022-23

Year ended March 31,
2023

2022

9,287

7,811

(73)

153

9,214

7,964

Income tax expense for the years ended March 31, 2023 andMarch 31, 2022 includes reversal (net of provisions) of ₹106
crore and ₹268 crore, respectively. These reversals pertaining toprior periods are primarily on account of adjudication of certain
disputed matters, upon filing of tax return and completion ofassessments, across various jurisdictions.
A reconciliation of the income tax provision to the amountcomputed by applying the statutory income tax rate to theincome before income taxes is summarized below:(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Profit before income taxes

33,322

30,110

Enacted tax rates in India

34.94%

34.94%

Computed expected tax expense

11,644

10,522

Tax effect due to non-taxable income
for Indian tax purposes(2,916)(2,949)Overseas taxes

1,060

984

Tax provision (reversals)

(106)

(268)

Effect of exempt non-operating
income(52)(52)

Effect of unrecognized deferred tax
assets109

72

Effect of differential tax rates

(329)

(196)

Effect of non-deductible expenses

153

162

–

(94)

(349)
9,214

(217)
7,964

Impact of change in tax rate
OthersIncome tax expense

The applicable Indian corporate statutory tax rate for the years
ended March 31, 2023 and March 31, 2022 is 34.94% each.
The foreign tax expense is due to income taxes payable overseas
principally in the US. In India, the Group has benefited fromcertain tax incentives that the Government of India had provided
for export of software and services from the units registeredunder the Special Economic Zones (SEZs) Act, 2005. SEZ units,
which began the provision of services on or after April 1, 2005 are
eligible for a deduction of 100% of profits or gains derived fromthe export of services for the first five years from the financial
year in which the unit commenced the provision of services and
50% of such profits or gains for further five years. Up to 50%
of such profits or gains is also available for a further five years
subject to creation of a Special Economic Zone Re-investment
Reserve out of the profit of the eligible SEZ units and utilizationof such reserve by the Group for acquiring new plant andmachinery for the purpose of its business as per the provisions of
the Income-tax Act, 1961.
Deferred income tax for the years ended March 31, 2023 andMarch 31, 2022 substantially relates to origination and reversal of
temporary differences.

341

Consolidated Financial Statements
Infosys is subject to a 15% Branch Profit Tax (BPT) in the US to
the extent its US branch's net profit during the year is greaterthan the increase in the net assets of the US branch during theyear, computed in accordance with the Internal Revenue Code.
As at March 31, 2023, Infosys' US branch net assets amounted toapproximately ₹6,948 crore. As at March 31, 2023, the Company
has a deferred tax liability for Branch Profit Tax of ₹148 crore (netof credits), as the Company estimates that these branch profits
are expected to be distributed in the foreseeable future.

The details of income tax assets and income tax liabilities as at
March 31, 2023 and March 31, 2022 are as follows :Deferred income tax liabilities have not been recognized on
temporary differences amounting to ₹10,948 crore and ₹9,618
crore as at March 31, 2023 and March 31, 2022, respectively,
associated with investments in subsidiaries and branches as
the Company is able to control the timing of reversal of thetemporary difference and it is probable that the temporary
differences will not reverse in the foreseeable future. The Groupmajorly intends to repatriate earnings from subsidiaries
and branches only to the extent these can be distributed
in a tax-free manner.
Deferred income tax assets have not been recognized on
accumulated losses of ₹4,423 crore and ₹4,487 crore as at
March 31, 2023 and March 31, 2022, respectively, as it is probablethat future taxable profit will not be available against which theunused tax losses can be utilized in the foreseeable future.
The details of expiration of unused tax losses as at
March 31, 2023 are as follows :(In ₹ crore)

Year

As at
March 31, 2023

2024

122

2025

138

2026

146

2027

88

2028

494

Thereafter

3,435

Total

4,423

(In ₹ crore)

Particulars

As at March 31,
2023

2022

Income tax assets

6,459

6,152

Current income tax liabilities

3,384

2,607

Net current income tax asset /(liability) at the end

3,075

3,545

The gross movement in the current income tax assets / (liabilities) for
the years ended March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

Year ended March 31,

Net current income tax asset /(liability) at the beginning
Translation differences

2023

2022

3,545

3,665

1

(7)

Income tax paid

8,794

7,612

Current income tax expense(9,287)(7,811)

Income tax benefit arising on exerciseof stock options

51

63

Additions through businesscombination

(12)

–

Tax impact on buyback expenses

98

Income tax on other comprehensive
income(24)

15

Impact on account of Ind AS 37
adoption(2)–

Net current income tax asset /(liability) at the end

3,075

3,545

The details of expiration of unused tax losses as at
March 31, 2022 were as follows :(In ₹ crore)

Year

As at
March 31, 2022

2023

201

2024

154

2025

127

2026

153

2027

52

Thereafter

3,800

Total

4,487

342

Infosys Integrated Annual Report 2022-23

The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2023 is as follows :(In ₹ crore)

Particulars

Carrying
value as at
April 1, 2022

Changes
Additionthroughthrough
profit andbusiness
loss combination

Impact on
Changes
account of through OCI
Ind AS 37
adoptionTranslationdifference

Carrying
value as at
March 31,
2023

(4)

169

Deferred income tax assets / (liabilities)
Property, plant and equipment

156

17

–

–

–

Lease liabilities

180

43

–

–

–

–

223

Accrued compensation to employees

51

15

–

–

–

2

68

Trade receivables

213

48

–

–

–

–

261

Compensated absences

529

47

–

–

–

–

576

Post-sales client support

131

114

–

2

–

1

248

Credits related to branch profits

676

(13)

–

–

–

55

718

Derivative financial instruments

(25)

22

–

–

2

1

–

Intangible assets

49

8

–

–

–

5

62

Intangibles arising on businesscombinations

(308)

70

(80)

–

–

(26)

(344)

Branch profit tax

(834)

35

–

–

–

(67)

(866)

SEZ Re-investment Reserve

(852)

(499)

–

–

–

–

(1,351)Others

90

166

(1)

–

–

6

261

Total deferred income tax assets /(liabilities)

56

73

(81)

2

2

(27)

25

The movement in gross deferred income tax assets / liabilities (before set-off) for the year ended March 31, 2022 was as follows :(In ₹ crore)

Particulars

Carrying
value as at
April 1, 2021

Changes
Addition
Changesthroughthrough through OCI
profit andbusiness
loss combination

Translationdifference

Carrying
value as at
March 31,
2022

1

156

Deferred income tax assets / (liabilities)
Property, plant and equipment

255

(100)

–

–

Lease liabilities
Accrued compensation to employees

166

14

–

–

–

180

42

10

–

–

(1)

51

Trade receivables

217

(4)

–

–

–

213

Compensated absences

497

32

–

–

–

529

Post-sales client support

121

9

–

–

1

131

Credits related to branch profits

355

308

–

–

13

676

Derivative financial instruments

(57)

29

–

3

–

(25)

Intangible assets

31

17

–

–

1

49

Intangibles arising on business combinations

(368)

62

–

–

(2)

(308)

Branch profit tax

(500)

(316)

–

–

(18)

(834)

SEZ Re-investment Reserve

(613)

(239)

–

–

–

(852)

Others

77
223

25
(153)

–
–

(12)
(9)

–
(5)

90
56

Total deferred income tax assets / (liabilities)

Infosys Integrated Annual Report 2022-23

343

Consolidated Financial Statements
The deferred income tax assets and liabilities are as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Deferred income tax assets after
set-off

1,245

1,212

Deferred income tax liabilities after
set-off(1,220)(1,156)

In assessing the reliability of deferred income tax assets, themanagement considers whether some portion or all of thedeferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets depends on thegeneration of future taxable income during the periods in which
the temporary differences become deductible. The 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 ofhistorical 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 willrealize the benefits of those deductible differences. The amountof 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.
The Company’s Advanced Pricing Arrangement (APA) with theInternal Revenue Service (IRS) for US branch income tax expiredin March 2021. The Company has applied for renewal of APA andcurrently the US taxable income is based on the Company’s best
estimate determined based on the expected value method.

2.18 Revenue from operations
Accounting policy
The Group derives revenues primarily from IT services comprising
software development and related services, cloud andinfrastructure 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-andmaterial, unit of work, fixed-price or on a fixed-timeframe basis.
Revenues from customer contracts are considered forrecognition and measurement when the contract has been
approved in writing by the parties, to the contract, the parties tocontract 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 hasreceived 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 andidentifies distinct performance obligations in the contract.
The Group allocates the transaction price to each distinct

344

performance obligation based on the relative standalone selling
price. The price that is regularly charged for an item, when soldseparately, is the best evidence of its standalone selling price.
In the absence of such evidence, the primary method used toestimate 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 pricewhen there is a basis to reasonably estimate the amount of
the variable consideration and when it is probable that asignificant reversal of cumulative revenue recognized will
not occur when the uncertainty associated with the variableconsideration is resolved.
Revenue on time-and-material and unit-of-work-based contracts,are recognized as the related services are performed. Fixed-pricemaintenance revenue is recognized ratably either on a straightline 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 patternof benefits from the services rendered to the customer and
the Group’s costs to fulfil the contract is not even through theperiod of contract because the services are generally discretein nature and not repetitive. Revenue from other fixed-price,
fixed-timeframe contracts, where the performance obligations
are satisfied over time, is recognized using the percentageof-completion method. Efforts or costs expended are used todetermine 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 todate (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 andare recognized in net profit in the period when these estimateschange or when the estimates are revised. Revenues and theestimated total costs or efforts are subject to revision as thecontract progresses. Provisions for estimated losses, if any, on
incomplete contracts are recorded in the period in which suchlosses 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 progressbillings. Revenues in excess of billing are classified as unbilled
revenue, while billing in excess of revenues is classified ascontract 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 eachperformance 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

Infosys Integrated Annual Report 2022-23

the standalone selling price, the Group uses the expected costplus margin approach in estimating the standalone selling
price. For software development and related services, theperformance obligations are satisfied as and when the services
are rendered, since the customer generally obtains control of thework as it progresses.
Certain cloud and infrastructure services contracts include
multiple elements which may be subject to other specificaccounting guidance, such as leasing guidance. These contracts
are accounted in accordance with such specific accounting
guidance. In such arrangements where the Group is able todetermine that hardware and services are distinct performanceobligations, it allocates the consideration to these performanceobligations on a relative standalone selling price basis. In theabsence 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 asingle performance obligation, revenue is recognized overthe period and measure of progress is determined based on
promise in the contract.
Revenue from licenses where the customer obtains a “rightto use” the licenses is recognized at the time the license
are made available to the customer. Revenue from licenses
where the customer obtains a “right to access” is recognizedover the access period.
Arrangements to deliver software products generally havethree elements: license, implementation and Annual Technical
Services (ATS). When implementation services are provided inconjunction with the licensing arrangement, and the license
and implementation have been identified as two distinct
separate performance obligations, the transaction price forsuch 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 inestimating the standalone selling price. Where the license
is required to be substantially customized as part of theimplementation service, the entire arrangement fee for license
and implementation is considered to be a single performanceobligation and the revenue is recognized using the percentageof-completion method while the implementation is performed.
Revenue from client training, support and other services arising
due to the sale of software products is recognized as theperformance obligations are satisfied. ATS revenue is recognized
ratably on a straight-line basis over the period in which theservices 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

Infosys Integrated Annual Report 2022-23

customer and the vendor, and gross when the Group is theprincipal for the transaction. In doing so, the Group first evaluates
whether it controls the good or service before it is transferred tothe customer. The Group considers whether it has the primaryobligation to fulfil the contract, inventory risk, pricing discretionand other factors to determine whether it controls the goods orservice 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 notbeen obtained) are recognized as an asset if the Group
expects to recover them.
Certain eligible, nonrecurring costs (e.g. set-up or transitionor transformation costs) that do not represent a separate
performance obligation are recognized as an asset whensuch costs (a) relate directly to the contract; (b) generateor enhance resources of the Group that will be used insatisfying the performance obligation in the future; and (c) are
expected to be recovered.
Capitalized contract costs, relating to upfront payments tocustomers, 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 the 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 operations for the years ended March 31, 2023 andMarch 31, 2022 is as follows :(In ₹ crore)

Particulars
Revenue from software services
Revenue fromproducts and platforms
Total revenue from operations

Year ended March 31,
2023

2022

1,37,575

1,13,536

9,192
1,46,767

8,105
1,21,641

Disaggregated revenue information
The table below presents disaggregated revenues from contracts
with customers by geography and offerings for each of ourbusiness 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 andother economic factors.

345

Consolidated Financial Statements
For the years ended March 31, 2023 and March 31, 2022 :(In ₹ crore)

Particulars

Financial Retail(2) Communication(3)Services (1)Energy , Manufacturing Hi-Tech
Utilities,
Resources
and Services

Life Others (5)Sciences(4)Total

Revenues byGeography *North America
Europe28,086

14,70010,903

9,953

7,560

11,101

7,334

1,087

90,724

24,41011,989

8,474

7,430

6,303

9,342

6,173

937

75,058

7,373

5,344

3,836

6,993

10,910

275

2,580

364

37,675

6,746

4,759

3,598

5,766

6,606

224

2,203

227

30,129

India

1,909

72

164

213

84

423

28

968

3,861

1,933

90

315

153

69

412

27

586

3,585

Rest of the World

6,395

1,088

3,183

1,380

481

68

143

1,769

14,507

5,813
Total

896

2,795

1,135

358

58

114

1,700

12,86943,763 21,204

18,086

18,53919,035

11,867

10,085

4,188

1,46,767

38,902

17,734

15,182

14,484

13,336 10,036

8,517

3,450

1,21,641

24,006

13,97011,959

11,627

13,626

6,394

2,061

91,272

20,391

10,857

9,310

8,412

8,240

5,817

4,925

1,452

69,40419,757

7,234

6,127

6,912

5,409

4,238

3,691

2,127

55,495

18,511

6,877

5,872

6,072

5,096

4,219

3,592

1,998

52,23743,763 21,204

18,086

18,53919,035

11,867

10,085

4,188

1,46,767

38,902

15,182

14,484

13,336 10,036

8,517

3,450

1,21,641

Revenue by offerings
DigitalCore
Total

17,734(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 Healthcare

7,629

(5)

Others include operating segments of businesses in India, Japan and China, Infosys Public Services and other enterprises in Public Services*

Geographical revenue is based on the domicile of customer.

Digital services

Products and platforms

Digital services comprise service and solution offerings of theGroup that enable our clients to transform their businesses.
These include offerings that enhance customer experience,leverage AI-based analytics and Big Data, engineer digitalproducts and IoT, modernize legacy technology systems,
migrate to cloud applications and implement advanced
cybersecurity systems.

The Group also derives revenues from the sale of products andplatforms including Finacle® – core banking solution, Edge Suiteof products, Panaya platform, Infosys Equinox, Infosys Helix,
Infosys Applied AI, Infosys Cortex, Stater digital platform andInfosys McCamish – insurance platform.

Core services
Core Services comprise traditional offerings of the Group thathave 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.

346

The percentage of revenue from fixed-price contracts foreach of the years ended March 31, 2023 and March 31, 2022 isapproximately 52% and 53%, respectively.
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.

Infosys Integrated Annual Report 2022-23

The Group’s receivables are rights to consideration that areunconditional. Unbilled revenues, comprising revenues inexcess of billings from time and material contracts and fixedprice 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 timingof revenue recognition is different from the timing of invoicing to
the customers. Therefore, unbilled revenues for other fixed-pricecontracts (contract asset) are classified as non-financial asset
because the right to consideration depends on completion ofcontractual 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.
During the years ended March 31, 2023 and March 31, 2022, theCompany recognized revenue of ₹5,387 crore and ₹3,551 crorearising from opening unearned revenue as of April 1, 2022 andApril 1, 2021, respectively.
During the years ended March 31, 2023 and March 31, 2022,₹5,950 crore and ₹4,047 crore of unbilled revenue pertaining
to other fixed-price and fixed-time frame contracts asof April 1, 2022 and April 1, 2021, respectively has been
reclassified to Trade receivables upon billing to customers oncompletion of milestones.
Remaining performance obligation disclosure
The remaining performance obligation disclosure provides theaggregate amount of the transaction price yet to be recognized
as at the end of the reporting period, and an explanation as towhen the Group expects to recognize these amounts in revenue.
Applying the practical expedient as given in Ind AS 115, theGroup has not disclosed the remaining performance obligation
related disclosures for contracts where the revenue recognizedcorresponds directly with the value to the customer of theentity's performance completed to date, typically those contracts
where invoicing is on time and material and unit of work-based
contracts. Remaining performance obligation estimates are
subject to change and are affected by several factors, including
terminations, changes in the scope of contracts, periodic
revalidations, adjustment for revenue that has not materialized
and adjustments for currency fluctuations.
The aggregate value of performance obligations that arecompletely or partially unsatisfied as at March 31, 2023, otherthan those meeting the exclusion criteria mentioned above,is ₹80,867 crore. Out of this, the Group expects to recognize
revenue of around 57% within the next one year and theremaining thereafter. The aggregate value of performanceobligations that are completely or partially unsatisfied as at
March 31, 2022 was ₹74,254 crore. The contracts can generally
be terminated by the customers and typically include an
enforceable termination penalty payable by them. Generally,customers have not terminated contracts without cause.

Infosys Integrated Annual Report 2022-23

2.19 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 recognizedwhen the right to receive payment is established.
Foreign currency – Accounting policy
Functional currency
The functional currency of Infosys, Infosys BPM, EdgeVerve,
Skava, Infosys Green Forum and controlled trusts 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 andliabilities, net, except when deferred in Other Comprehensive
Income as qualifying cash flow hedges. Non-monetary assets
and non-monetary liabilities denominated in a foreign currency
and measured at fair value are translated at the exchange rate
prevalent at the date when the fair value was determined. Nonmonetary assets and non-monetary liabilities denominated in aforeign 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 theexchange 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 andliabilities 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 orlosses resulting from such translation are included in currencytranslation reserves under other components of equity. Whena subsidiary is disposed off, in full, the relevant amount istransferred 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 arerecorded through equity.
Other comprehensive income, net of taxes includes translationdifferences on non-monetary financial assets measured atfair value at the reporting date, such as equities classified as
financial instruments and measured at fair value through othercomprehensive income (FVOCI).
347

Consolidated Financial Statements
2.20 Expenses

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

(In ₹ crore)

Particulars

Government grant
The Group recognizes government grants only when there isreasonable 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 arerecognized 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 recognizedon a systematic basis in net profit in the consolidated Statementof Profit and Loss over the periods necessary to match them withthe related costs which they intend to compensate.

(In ₹ crore)

Year ended March 31,
2023

2022

Interest income on financial assets
carried at amortized cost

2022

Salaries including bonus

75,23961,522Contribution to provident andother funds

2,143

1,617

Share-based payments toemployees (Refer to Note 2.12)

519

415

Staff welfare

458

432

78,35963,986

1,937

1,417

Cost of software packages and others
Third party items bought forservice delivery to clients

8,965

5,394

10,902

6,811

1,208

1,066

Power and fuel

176

132

Other expenses
Repairs and maintenanceTax-free bonds and government
bonds

Brand and marketing

905

553

149

152

Short-term leases

92

61

Deposit with bank and others

712

851

Rates and taxes

299

265

Consumables

158

146

Insurance

174

164

Provision for post-sales client
support and others

120

78

Commission to non-whole time
directors

15

11

Impairment loss recognized /(reversed) under expected credit
loss model

283

170

Contributions towards Corporate
Social Responsibility

471

426

491
4,392

352
3,424

Interest income on financial assets
carried at fair value through othercomprehensive income
Non-convertible debentures,commercial paper, certificates ofdeposit and government securities

955

642

Income on investments carried at fairvalue through profit or loss
Gain / (loss) on liquid mutual funds
and other investments

148

177

Income on investments carried at fairvalue through other comprehensive
income1

1Exchange gains / (losses) on forward
and options contracts

(647)

88

Exchange gains / (losses) on translationof other assets and liabilities

1,062

186

321
2,701

198
2,295

Miscellaneous income, net
Total other income

348

2023
Employee benefit expenses

For own use

Other income for the years ended March 31, 2023 and March 31,
2022 is as follows :Particulars

Year ended March 31,

OthersDuring the year ended March 31, 2022, in accordance with theCompanies (Corporate Social Responsibility Policy) Amendment
Rules, 2021 (“the Rules”), the Company transferred certain assets
to its controlled subsidiary ‘Infosys Green Forum’, a Company
created under Section 8 of the Companies Act, 2013.

Infosys Integrated Annual Report 2022-23

2.21 Leases
Accounting policy
The Group as a lessee
The Group’s lease asset classes primarily consist of leases forland, buildings and computers. The Group assesses whether acontract contains a lease, at inception of a contract. A contractis, 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 theright 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 useof 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) andlow value leases. For these short-term and low value leases, theGroup recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.
As a lessee, the Group determines the lease term as the noncancellable 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 leaseterm on a lease-by-lease basis and thereby assesses whether itis reasonably certain that any options to extend or terminate
the contract will be exercised. In evaluating the lease term, theCompany 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 theunderlying asset to Group’s operations taking into accountthe location of the underlying asset and the availability ofsuitable alternatives. The lease term in future periods isreassessed to ensure that the lease term reflects the current
economic circumstances.

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 forany lease payments made at or prior to the commencement dateof 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 termand 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 fairvalue 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 thepresent 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 rightof use asset if the Group changes its assessment to 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 isclassified 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.
The changes in the carrying value of right-of-use assets for the year ended March 31, 2023 are as follows :(In ₹ crore)

Particulars
Balance as of April 1, 2022
AdditionsCategory of ROU asset

Total

Land

Buildings

VehiclesComputers

628

3,711

16

468

4,823

–

847

8

2,646

3,501

Deletions

–

(45)

–

(364)

(409)

Depreciation

(6)

(671)

(10)

(499)

(1,186)

Translation difference

1

54

1

97

153

623

3,896

15

2,348

6,882

*

Balance as of March 31, 2023
*Net of adjustments on account of modifications and lease incentives

Infosys Integrated Annual Report 2022-23

349

Consolidated Financial Statements
The changes in the carrying value of right-of-use assets for the year ended March 31, 2022 were as follows :(In ₹ crore)

Particulars

Category of ROU asset
Land

Buildings

VehiclesComputers

630

3,984

19

161

Balance as of April 1, 2021
Additions

Total
4,794

–

449

6

459

914

Deletions

–

(85)

–

(47)

(132)

Depreciation

(6)

(657)

(10)

(108)

(781)

Translation difference

4

20

1

3

28

628

3,711

16

468

4,823

*

Balance as of March 31, 2022
*Net of adjustments on account of modifications and lease incentives

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the Consolidated
Statement of Profit and Loss.
The break-up of current and non-current lease liabilities as at
March 31, 2023 and March 31, 2022 is as follows :(In ₹ crore)

Particulars

As at March 31,
2023

2022

Current lease liabilities

1,242

872

Non-current lease liabilities

7,057

4,602

Total

8,299

5,474

Rental expense recorded for short-term leases was ₹92
crore and ₹61 crore for the years ended March 31, 2023 andMarch 31, 2022, respectively.
The movement in the net investment in sublease of
ROU assets during the years ended March 31, 2023 andMarch 31, 2022 is as follows :(In ₹ crore)

The movement in lease liabilities during the years ended
March 31, 2023 and March 31, 2022 is as follows :Particulars(In ₹ crore)

Particulars

The Group does not face a significant liquidity risk with regard to
its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.

Year ended March 31,
2023

2022

Balance at the beginning

5,474

5,325

Year ended March 31
2023

2022

372

388

Additions65Interest income accrued during theperiod13

13

Balance at the beginning

Additions

3,503

933

Lease receipts

(63)

(48)

Deletions

(49)

(134)

Translation difference30

14Finance cost accrued during theperiodBalance at the end

358

372

245

175

Payment of lease liabilities(1,241)(956)

Translation difference

367
8,299

131
5,474

Balance at the end

The table below provides details regarding the contractual
maturities of lease liabilities as at March 31, 2023 andMarch 31, 2022 on an undiscounted basis :(In ₹ crore)

Particulars

As at March 31,2023(In ₹ crore)

Particulars

The details regarding the contractual maturities of net
investment in sublease of ROU asset on an undiscounted
basis during the year ended March 31, 2023 and March 31,
2022 are as follows :As at March 31,

2022

Less than one year

63

55

One to five years

264

235

2023

2022

More than five years

69

126

Less than one year

1,803

991

Total

396

416

One to five years

5,452

3,244

More than five years

1,978

1,972

Total

9,233

6,207

350

Leases not yet commenced to which the Group is committed is₹172 crore for a lease term ranging from three to ten years.

Infosys Integrated Annual Report 2022-23

2.22 Employee benefits
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 amountbased 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 Trustand EdgeVerve Systems Limited Employees' Gratuity Fund Trust,
respectively. Trustees administer contributions made to theTrusts 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 plansprovide for periodic payouts after retirement and / or a lumpsum payment as set out in rules of each fund and includes
death and disability benefits. The defined benefit plans require
contributions, which are based on a percentage of salary thatvaries depending on the age of the respective employees.
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 theGroup to actuarial risks, such as longevity risk, interest raterisk 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 andare 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 thedefined 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.

invests in specific designated instruments as permitted by Indianlaw. The remaining portion is contributed to the government
administered pension fund. The rate at which the annual interestis payable to the beneficiaries by the trust is being administeredby the Government of India. The Company has an obligation
to make good the shortfall, if any, between the return from theinvestments 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 planequal to a specified percentage of the covered employee's
salary. Amounts collected under the provident fund plan aredeposited 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 areparticipants in a defined contribution plan. The Group has nofurther obligations to the plan beyond its monthly contributions,which are periodically contributed to a trust fund, the corpus ofwhich 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 isdetermined by actuarial valuation performed by an independentactuary 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 theBalance Sheet date. Expense on non-accumulating compensatedabsences is recognized in the period in which the absences occur.

Provident fundEligible 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

Infosys Integrated Annual Report 2022-23351

Consolidated Financial Statements
2.22.1 Gratuity and pension
The details of the defined benefit retirement plans and the amounts recognized in the Group's financial statements as at March 31, 2023
and March 31, 2022 are as follows :(In ₹ crore)

Particulars

Gratuity

PensionAs at March 31,

As at March 31,

2023

2022

2023

2022

1,722

1,624

926

814

–

–

19

55

Change in benefit obligations
Benefit obligations at the beginning
Transfer
Service cost

276

219

41

40

Interest expense

103

89

5

3

Remeasurements – Actuarial (gains) / losses

(72)

81

(143)

(14)

Past service cost – Plan amendments

(1)

–

–

14

Employee contribution

–

–

27

27

(268)

(291)

(46)

(41)

Benefits paid
Translation difference
Benefit obligations at the end

18

–

88

28

1,778

1,722

917

926

1,711

1,610

846

690

Change in plan assets
Fair value of plan assets at the beginning
Transfer

–

–

19

55

Interest income

105

96

4

3

Remeasurements – Return on plan assets excluding
amounts included in interest income

24

24

(95)

53

Employer contribution

175

267

37

37

Employee contribution
Benefits paid
Translation difference
Fair value of plan assets at the end
Funded status

–

–

27

27

(260)

(286)

(46)

(41)

–

–

78

22

1,755

1,711

870

846

(23)

(11)

(47)

(80)

Defined benefit plan asset

23

22

13

8

Defined benefit plan liability

(46)

(33)

(60)

(88)

The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Consolidated Statement of Profit and Loss under
employee benefit expense, are as follows :(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

Service cost

276

219

41

40

Net interest on the net defined benefit liability / (asset)

(2)

(7)

1

–

Plan amendments

(1)

–

–

14

Net cost

273

212

42

54

352

Infosys Integrated Annual Report 2022-23

The amounts for the years ended March 31, 2023 and March 31, 2022 recognized in the Consolidated Statement of Other Comprehensive
Income are as follows :(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

(72)

81

(143)

(14)

(24)
(96)

(24)
57

95
(48)

(53)
(67)

Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses(Return) / loss on plan assets, excluding amounts
included in the net interest on the net defined benefit
liability / (asset)(In ₹ crore)

Particulars

Gratuity

PensionYear ended March 31

Year ended March 31,

2023

2022

2023

2022

–

–

–

(1)

(Gain) / loss from change in financial assumptions

(62)

(46)

(148)

(22)

(Gain) / loss from experience adjustment

(10)

127

5

9

(72)

81

(143)

(14)

(Gain) / loss from change indemographic assumptions

The weighted-average assumptions used to determine benefit obligations as at March 31, 2023 and March 31, 2022 are as follows :Particulars

Gratuity

PensionAs at March 31,

As at March 31,

2023

2022

2023

2022

Discount rate (in %) (1)

7.1

6.5

1.8-3.8

0.4-1.7

Weighted average rate of increase in compensationlevels (in %) (2)

6

6

1-3

1-3

5.9 years

5.9 years

12 years

14 years

Weighted average duration of defined benefit
obligation (3)The weighted-average assumptions used to determine net periodic benefit cost for the years ended March 31, 2023 andMarch 31, 2022 are as follows :(In %)

Particulars

Discount rate
Weighted average rate of increase in compensationlevelsGratuity

PensionYear ended March 31,

Year ended March 31,

2023

2022

2023

2022

6.5

6.1

0.4-1.7

0.1-0.9

6

6

1-3

1-3

(1)

For domestic defined benefit plan in India, the market for high quality corporate bonds being not developed, the yield of government bonds is consideredas the discount rate. For most of our overseas defined benefit plan, given that the market for high quality corporate bonds is not developed, the Government
bond rate adjusted for corporate spreads is used.

(2)

The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s past compensation revision
trends, inflation in respective markets and the Management’s estimate of future salary increases.

(3)

Attrition rate considered is the Management’s estimate based on the past long-term trend of employee turnover in the Company. The tenure has been
considered taking into account the past long-term trend of employees' average remaining service life which reflects the average estimated term of postemployment benefit obligation.

Infosys Integrated Annual Report 2022-23

353

Consolidated Financial Statements
For domestic defined benefit plan in India, assumptions
regarding future mortality experience are set in accordancewith the published statistics by the Life Insurance Corporationof India. For overseas defined benefit plan, the assumptions
regarding future mortality experience are set with regard to
the latest statistics in life expectancy, plan experience andother relevant data.

converting the lump-sum to a pension and there is the risk thatthe members live longer than implied by these conversion rates
and that the pension assets don’t achieve the investment return
implied by these conversion rates.

The Group assesses all of the above assumptions
with its projected long-term plans of growth andprevalent industry standards.
The Company contributes all ascertained liabilities towards
gratuity to the Infosys Limited Employees' Gratuity Fund 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 trust as at
March 31, 2023 and March 31, 2022, and contributions for gratuity
are invested in a scheme with the Life Insurance Corporationof India as permitted by Indian law. The plan assets of theoverseas defined benefit plan have been primarily invested ininsurer managed funds and the asset allocation for plan assets isdetermined based on the investment criteria prescribed under
the relevant regulations applicable to pension funds and theinsurer managers. The insurers' investment are well diversified
and also provide for guaranteed interest rates arrangements.
Actual return on assets (including remeasurements) of
the Gratuity Plan for the years ended March 31, 2023 andMarch 31, 2022 were ₹129 crore and ₹120 crore, respectively andfor the pension plan were (₹91) crore and ₹56 crore, respectively.
The contributions for gratuity are invested in a scheme with theLife Insurance Corporation of India as permitted by Indian law.
The details of major plan assets into various categories as at
March 31, 2023 and March 31, 2022 are as follows :The sensitivity of significant assumptions used for valuation ofdefined benefit obligation is as follows :(In ₹ crore)

Impact from

As at March 31, 2023
Gratuity

Pension

1% point
increase /decrease

0.5% point
increase /decrease

Discount rate

94

40

Weighted average rate of increasein compensation levels

85

5Sensitivity to significant actuarial assumptions is computedby varying one actuarial assumption used for the valuation of
the defined benefit obligation and keeping all other actuarial
assumptions constant. In practice, this is not probable, andchanges in some of the assumptions may be correlated.
The Group expects to contribute ₹219 crore to gratuity and₹40 crore to pension during the fiscal 2024.

(In %)

Particulars

Asset volatility: A proportion of the pension fund is held in
equities, which is expected to outperform corporate bondsin the long term but give exposure to volatility and risk in the
short term. The pension fund board of insurer is responsible
for the investment strategy and equity allocation is justified
given the long-term investment horizon of the pension fundand the objective to provide a reasonable long term return on
members’ account balances.

The maturity profile of defined benefit obligation is as follows :Pension(In ₹ crore)

As at March 31,

Particulars

Gratuity

PensionWithin 1 year

274

58

1-2 years

278

55

32

2-3 years

277

61

26

26

3-4 years

309

59

Cash and cash equivalents

1

1

Other

7

7

4-5 years389

64

5-10 years

1,953

322

2023

2022

Equity

34

34

Bonds

32

Real estate / Property

These defined benefit plans expose the Group to actuarial risk
which are set out below :Interest rate risk: The present value of the defined benefit plan
liability is generally calculated using a discount rate determinedwith reference to government bond yields and in certain
overseas jurisdictions, it is calculated in reference to government
bond yield adjusted for a corporate spread. If bond yields fall, thedefined benefit obligation will tend to increase.

2.22.2 Provident fundInfosys 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 determinedannually, predominantly considering the social rather thaneconomic factors. The actuary has provided a valuation forprovident fund liabilities on the basis of guidance issued by the
Actuarial Society of India.

Life expectancy and investment risk: The pension fund offers
the choice between a lifelong pension and a cash lump-sum
upon retirement. The pension fund has defined rates for354

Infosys Integrated Annual Report 2022-23

The funded status of the defined benefit provident fundplan of Infosys Limited and the amounts recognized in
the Group's financial statements as at March 31, 2023 andMarch 31, 2022 is as follows :The assumptions used in determining the present value
obligation of the defined benefit plan under the Deterministic
Approach are as follows :Particulars(In ₹ crore)

As at March 31,
2023

2022

Government of India (GOI) bondyield (1)

7.10%

6.50%

Change in benefit obligations

Expected rate of return on plan assets

8.15%

7.70%

Benefit obligations at the
beginning

8,287

Remaining term to maturity of
portfolio

6 years

6 years

814

656

Expected guaranteed interest rate

8.15%

8.10%

Particulars

As at March 31,
2023

Service cost
Employee contribution

9,304

2022

1,689

1,153

Interest expense

625

516

Actuarial (gains) / loss

(82)

118

Benefits paid

(1,823)(1,426)

Benefit obligations at the end

10,527

9,304

9,058

8,140

609

507

Change in plan assets
Fair value of plan assets at the
beginning
Interest income
Remeasurements – Return on plan
assets excluding amounts included ininterest income

(186)

18

Employer contribution

837

666

Employee contribution

1,689

1,153

Benefits paid

(1,823)(1,426)

Fair value of plan assets at the end

10,184
(343)

9,058
(246)

Net liability

The amounts for the years ended March 31, 2023 andMarch 31, 2022 recognized in the Consolidated Statement of
Other Comprehensive Income are as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Actuarial (gains) / losses

(82)

118

(Return) / loss on plan assets,
excluding amounts included in
the net interest on the net defined
benefit liability / (asset)

186

(18)

Remeasurements of the net defined
benefit liability / (asset)(1)

In India, the market for high quality corporate bonds being notdeveloped, the yield of government bonds is considered as the discountrate. The tenure has been considered taking into account the past longterm trend of employees’ average remaining service life which reflects theaverage estimated term of the post- employment benefit obligations.

The breakup of the plan assets into various categories as at
March 31, 2023 and March 31, 2022 are as follows :(In %)

Particulars

As at March 31,
2023

2022

Central and state government bonds

60

57

Public sector undertakings andPrivate sector bonds

33

37

Others7

6

The asset allocation for plan assets is determined based on theinvestment criteria prescribed under the relevant regulations.
The actuarial valuation of PF liability exposes the Group tointerest rate risk. The defined benefit obligation calculated uses a
discount rate based on government bonds. If bond yields fall, thedefined benefit obligation will tend to increase.
As at March 31, 2023, the defined benefit obligation would
be affected by approximately ₹48 crore and ₹97 crore on
account of a 0.25% increase / decrease in the expected rate of
return on plan assets.
The Group contributed ₹1,193 crore and ₹882 crore to theprovident fund during the years ended March 31, 2023 andMarch 31, 2022, respectively. The same has been recognized in
the Consolidated Statement of Profit and Loss under the head,
Employee benefit expense.
The provident plans are applicable only to employees drawing asalary in Indian rupees.

104

100

2.22.3 Superannuation
The Group contributed ₹487 crore and ₹364 crore during theyears ended March 31, 2023 and March 31, 2022, respectively andthe same has been recognized in the Consolidated Statement ofProfit and Loss under the head employee benefit expense.

Infosys Integrated Annual Report 2022-23

355

Consolidated Financial Statements
2.24 Contingent liabilities and commitments

2.22.4 Employee benefit costs(In ₹ crore)

Particulars
Salaries and bonus (1)Defined contribution plans
Defined benefit plans(1)

Year ended March 31,
2023

2022

76,36562,483

627

478

1,367

1,025

78,35963,986

Includes employee stock compensation expense of ₹519 crore and ₹415
crore for the years ended March 31, 2023 and March 31, 2022, respectively.

2.23 Reconciliation of basic and diluted shares used incomputing earnings per equity share

Accounting policy
Contingent liability is a possible obligation arising from past
events and whose existence will be confirmed only by theoccurrence 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 recognizedbecause it is not probable that an outflow of resources
embodying economic benefits will be required to settle theobligation or the amount of the obligation cannot be measured
with sufficient reliability.
(In ₹ crore)

Particulars

2023

2022

4,762

4,641

Estimated amount of contracts
remaining to be executed on capital
contracts and not provided for(net of advances and deposits) (2)

959

1,245

Other commitments *92

28

Accounting policy
Basic earnings per equity share is computed by dividing the net
profit attributable to the equity holders of the Group by theweighted 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 sharesconsidered for deriving basic earnings per equity share and also
the weighted average number of equity shares that could havebeen issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for theproceeds 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.

Contingent liabilities
Claims against the Group, notacknowledged as debts (1)[Amount paid to statutory authorities₹6,539 crore (₹6,006 crore)]
Commitments*

Uncalled capital pertaining to investments(1)

As at March 31, 2023 and March 31, 2022, claims against the Group not
acknowledged as debts in respect of income tax matters amounted to₹4,062 crore and ₹4,001 crore, respectively.

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

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, disallowanceof deductions in respect of employment of new employees under Section
80JJAA, disallowance of expenditure towards software being held ascapital in nature, and payments made to Associated Enterprises held as
liable for withholding of taxes. These matters are pending before various
Income Tax Authorities and the Management including its tax advisors
expect that its position will likely be upheld on ultimate resolution, andwill not have a material adverse effect on the Group's financial position
and results of operations.

A reconciliation of the equity shares used in the computation ofbasic and diluted earnings per equity share is as follows :Particulars
Basic earnings per equity share– weighted average number of
equity shares outstanding (1)Effect of dilutive common
equivalent shares – shareoptions outstanding
Diluted earnings per equity
share – weighted average
number of equity shares andcommon equivalent shares
outstanding(1)

Year ended March 31,
2023

2022

418,08,97,857

420,95,46,724

68,33,213

89,78,410

418,77,31,070

421,85,25,134

As at March 31,

Amount paid to statutory authorities against the tax claims amounted to₹6,528 crore and ₹5,996 crore as at March 31, 2023 and March 31, 2022,
respectively.
(2)

Capital contracts primarily comprise commitments for infrastructure
facilities and computer equipments.

Legal proceedings
The Group is subject to legal proceedings and claims, whichhave arisen in the ordinary course of business. The Group’s
management reasonably expects that these legal actions, whenultimately concluded and determined, will not have a material
and adverse effect on the Group’s results of operations or
financial condition.

Excludes treasury shares

For the years ended March 31, 2023 and March 31, 2022, there
were 9,960 and Nil options to purchase equity shares which had
an anti-dilutive effect.
356

Infosys Integrated Annual Report 2022-23

2.25 Related party transactions
List of related parties(In %)Name of subsidiaries

Country

Infosys Technologies (China) Co. Limited (Infosys China)(1)

Infosys Technologies S. de R. L. de C. V. (Infosys Mexico) (1)Infosys Technologies (Sweden) AB (Infosys Sweden)(1)

Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)

Holdings as at March 31,
2023

2022

China

100

100

Mexico100

100

Sweden

100

100

China

100

100

Infosys Nova Holdings LLC. (Infosys Nova) (1)

US

100

100

EdgeVerve Systems Limited (EdgeVerve)

India

100

100

Austria

100

100

India

100

100

(1)

(1)

Infosys Austria GmbH (1)Skava Systems Private Limited (Skava Systems)
Infosys Chile SpA(1)(26)

Chile

100

100

Infosys Arabia Limited (2)(26)

Saudi Arabia

70

70

Infosys Consulting Ltda.

Brazil100

100

Luxembourg

100

100

US

100

100

US

(1)

(1)

Infosys Luxembourg S.a.r.l (1)Infosys Americas Inc. (Infosys Americas)(1)(26)

Infosys Public Services, Inc. USA (Infosys Public Services)

100

100

Infosys Canada Public Services Inc (19)(35)

Canada––Infosys BPM Limited

(1)

India

100

100

Infosys (Czech Republic) Limited s.r.o. (3)Czech Republic

100

100

Infosys Poland Sp z.o.o

Poland

100

100

US

100

100

Australia

100

100

(1)(43)(3)

Infosys McCamish Systems LLC(3)Portland Group Pty. Ltd (3)Infosys BPO Americas LLC.

US

100

100

Infosys Consulting Holding AG (Infosys Lodestone) (1)

Switzerland

100

100

Infosys Management Consulting Pty. Limited

Australia

100

100

Infosys Consulting AG

(3)

(4)

Switzerland

100

100

Infosys Consulting GmbH (4)Germany

100

100

Infosys Consulting S.R.L.

Romania

100

100

France

100

100

–

–

(4)

(1)

Infosys Consulting SAS (4)Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.)
Infosys Consulting (Shanghai) Co., Ltd.

(4)(34)

Czech Republic
China

–

–

Infy Consulting Company Ltd (4)

UK

100

100

Infy Consulting B.V. (4)The Netherlands

100

100

Infosys Consulting S.R.L. (45)

Argentina

100

100

Belgium

100

100

US

100

100

Israel100

100

Infosys Consulting (Belgium) NV(4)(30)(4)

Panaya Inc. (Panaya) (1)Panaya Ltd.

(6)

Infosys Financial Services GmbH. (formerly Panaya GmbH)Germany

100

100

Brilliant Basics Holdings Limited (Brilliant Basics) (1)(26)

UK

100

100

Brilliant Basics Limited

(54)

UK

100

100

Infosys Singapore Pte. Ltd. (formerly Infosys Consulting Pte. Ltd.) (1)Singapore

100

100

Infosys Middle East FZ LLC

Dubai

100

100

(7)(26)(8)

Infosys Integrated Annual Report 2022-23357

Consolidated Financial Statements
Name of subsidiaries

Country

2023

2022

Fluido Oy (8)Finland100

100

Fluido Sweden AB (Extero)

Holdings as at March 31,

Sweden100

100

Fluido Norway A/S (11)Norway100

100

Fluido Denmark A/S(11)

Denmark

100

100

Fluido Slovakia s.r.o(11)

Slovakia

100

100

Singapore

60

60South Africa(11)

Infosys Compaz Pte. Ltd (9)Infosys South Africa (Pty.) Ltd

100

100

WongDoody Holding Company Inc. (WongDoody) (1)(36)

US

–

–

WDW Communications, Inc

US

–

–

WongDoody, Inc(8)(10)(37)

US

100

100

HIPUS Co., Ltd (9)

Japan

81

81

Stater N.V.

(9)

The Netherlands

7575Stater Nederland B.V. (12)The Netherlands

7575Stater XXL B.V.

The Netherlands7575(10)(38)(12)

HypoCasso B.V.

The Netherlands

7575Stater Participations B.V. (12)The Netherlands

7575Stater Belgium N.V./S.A.

Belgium

75

75

Germany

75

75

US

100

100

(12)

(13)

Stater Gmbh (12)(28)
Outbox systems Inc. dba Simplus (US)
Simplus North America Inc.

(15)

Canada––Simplus ANZ Pty. Ltd. (16)Australia

100

100

Simplus Australia Pty. Ltd (17)Australia

100

100

Sqware Peg Digital Pty. Ltd (18)(31)

Australia––

Simplus Philippines, Inc.

Philippines(16)(27)(16)

Simplus Europe, Ltd. (16)(29)
Infosys Fluido UK, Ltd. (formerly Simplus U.K., Ltd)

(11)

Infosys Fluido Ireland, Ltd.(formerly Simplus Ireland, Ltd)

100

100

UK

–

–

UK

100

100

Ireland100

100

Infosys Limited Bulgaria EOOD (1)Bulgaria

100

100

Kaleidoscope Animations, Inc.

(15)

US

100

100

Kaleidoscope Prototyping LLC (22)

US

100

100

GuideVision s.r.o.

Czech Republic

100

100

Germany

100

100

Finland100

100

Hungary

100

100

Poland

100

100

UK

100

100

(14)

GuideVision Deutschland GmbH

(21)

GuideVision Suomi Oy (21)GuideVision Magyarország Kft(21)

GuideVision Polska Sp. z.o.o (21)GuideVision UK Ltd(21)(26)

Blue Acorn iCi Inc (formerly Beringer Commerce Inc)

(20)

US

100

100

Beringer Capital Digital Group Inc (15)(41)

US

–

–

Mediotype LLC

(15)

US

–

–

Beringer Commerce Holdings LLC (23)(41)

US

–

–

SureSource LLC(24)(39)

US––Blue Acorn LLC(24)(39)(23)(41)

US––

Simply Commerce LLC (24)(39)

US

–

–

iCiDIGITAL LLC

US

–

–

358

(25)(40)

Infosys Integrated Annual Report 2022-23

Name of subsidiaries

Country

2023

2022

Infosys BPM UK Limited (3)

UK

100

–

Turkey100

100Germany

100

100Germany

100

100

Infosys Turkey Bilgi Teknolojileri Limited Sirketi(1)

Infosys Germany Holding Gmbh (1)Infosys Automotive and Mobility GmbH & Co. KG
Infosys Green Forum(1)

Holdings as at March 31,

India

100

100

Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd.) (33)

Malaysia

100

100

Infosys Business Solutions LLC(1)(32)

Qatar

100

–

Infosys Germany GmbH (formerly Kristall 247. GmbH (“Kristall”)) (44)Germany

100–

oddity GmbHGermany

100–(1)(42)(46)

oddity (Shanghai) Co., Ltd.

China

100

–

oddity Limited (Taipei) (47)

Taiwan100–

oddity space GmbH(46)

Germany

100–

oddity jungle GmbH (46)Germany

100–

oddity code GmbHGermany

100–

Serbia100–

Germany

100–

oddity code d.o.o

(47)

(46)

(48)

oddity waves GmbH (46)oddity group services GmbHGermany

100–

Infosys Public Services Canada Inc. (19)(5)Canada100–

BASE life science AG

Switzerland

100

–

(46)

(50)

BASE life science GmbHGermany

100–

BASE life science A/S (49)

Denmark

100–

BASE life science S.A.S(50)

France100–

BASE life science Ltd. (50)

UK

100

–

BASE life science S.r.l.

Italy

100

–

US

100

–

BASE life science Inc.

(50)

US

100

–

BASE life science S.L.

(50)(51)

(50)

(50)

Innovisor Inc. (50)

Spain

100

–

Panaya Germany GmbH (6)(52)

Germany

100–

Infosys Norway

Norway100–(8)(53)(1)

Wholly-owned subsidiary of Infosys Limited

(15)

(2)

Majority-owned and controlled subsidiary of Infosys Limited(16)

Wholly-owned subsidiary of Outbox Systems Inc.

(3)

Wholly-owned subsidiary of Infosys BPM Limited(17)

Wholly-owned subsidiary of Simplus ANZ Pty. Ltd(4)

Wholly-owned subsidiary of Infosys Consulting Holding AG(18)

Wholly-owned subsidiary of Simplus Australia Pty. Ltd(5)

Incorporated on July 8, 2022

(19)

Wholly-owned subsidiary of Infosys Public Services, Inc.

(6)

Wholly-owned subsidiary of Panaya Inc.

(20)

(7)

Wholly-owned subsidiary of Brilliant Basics Holding Limited.

Wholly-owned subsidiary of Infosys Fluido UK, Ltd. (formerly Simplus U.K.,
Ltd)

(8)

Wholly-owned subsidiary of Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.)

(9)

(10)

Majority-owned and controlled subsidiary of Infosys Singapore Pte. Ltd.
(formerly Infosys Consulting Pte. Ltd.)
Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody)(11)

Wholly-owned subsidiary of Fluido Oy(12)

Wholly-owned subsidiary of Stater N.V(13)

Majority-owned and controlled subsidiary of Stater Participations B.V.

(14)

Wholly-owned subsidiary of Infy Consulting Company Limited

Infosys Integrated Annual Report 2022-23

Wholly-owned subsidiary of Infosys Nova Holdings LLC(21)

Wholly-owned subsidiary of GuideVision s.r.o.

(22)

Wholly-owned subsidiary of Kaleidoscope Animations, Inc.

(23)

Wholly-owned subsidiary of Blue Acorn iCi Inc(24)

Wholly-owned subsidiary of Beringer Commerce Holdings LLC(25)

Wholly-owned subsidiary of Beringer Capital Digital Group Inc.

(26)

Under liquidation(27)

Liquidated effective April 27,2021(28)

Incorporated on August 4, 2021

(29)

Liquidated effective July 20, 2021

(30)

Liquidated effective September 1, 2021

359

Consolidated Financial Statements(31)

Liquidated effective September 2, 2021

(32)

Incorporated on August 31, 2021

(33)

On December 14, 2021, Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.), a wholly-owned subsidiary of Infosys Limited
acquired 100% of voting interests in Infosys (Malaysia) SDN. BHD.
(formerly Global Enterprise International (Malaysia) Sdn. Bhd.)(34)

Liquidated effective December 16, 2021

(35)

Liquidated effective November 23, 2021

(36)

Wholly-owned subsidiary of Infosys Limited, merged with WongDoody
Inc, effective December 31, 2021

(37)

Wholly-owned subsidiary of WongDoody Holding Company Inc.
(WongDoody), merged with WongDoody Inc, effective December 31, 2021

(38)

Wholly-owned subsidiary of Infosys Limited, effective December 31, 2021

of voting interests in Infosys Germany GmbH (formerly Kristall 247. GmbH(“Kristall”)).
(45)

Infosys Consulting S.R.L. (Argentina) (formerly a wholly-owned subsidiaryof Infosys Consulting Holding AG) became the majority-owned andcontrolled subsidiary of Infosys Limited with effect from April 1, 2022

(46)

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH(“Kristall”)) (a wholly-owned subsidiary of Infosys Singapore Pte. Ltd(formerly Infosys Consulting Pte. Ltd.)) acquired 100% of voting interests in
oddity space GmbH, oddity jungle GmbH, oddity waves GmbH, oddity
group services GmbH, oddity code GmbH and oddity GmbH.

(47)

Wholly-owned subsidiary of oddity GmbH(48)

Wholly-owned subsidiary of oddity code GmbH.

(49)

On September 1, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys
Consulting Pte. Ltd.) (a wholly-owned subsidiary of Infosys Limited)acquired 100% of voting interests in BASE life science A/S.
Wholly-owned subsidiary of BASE life science A/S(39)

Merged with Beringer Commerce Holdings LLC, effective January 1, 2022

(40)

Merged with Beringer Capital Digital Group Inc, effective January 1, 2022

(50)

(41)

Merged with Blue Acorn iCi Inc, effective January 1, 2022

(51)

Incorporated on September 6, 2022

(42)

Incorporated on February 20, 2022

(52)

Incorporated effective December 15, 2022

(43)

On March 17, 2022, Infosys Limited acquired non-controlling interest of
0.01% of the voting interests in Infosys BPM Limited.

(53)

Incorporated effective February 7, 2023.

(54)

Infosys Financial Services GmbH. (formerly Panaya GmbH) became awholly-owned subsidiary of Infosys Singapore Pte. Ltd (formerly Infosys
Consulting Pte. Ltd.) with effect from February 23, 2023.

(44)

On March 22, 2022, Infosys Singapore Pte. Ltd. (formerly Infosys Consulting
Pte. Ltd.), a wholly-owned subsidiary of Infosys Limited acquired 100%

Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.
List of other related party
Particulars

Country Nature of relationshipInfosys Limited Employees' Gratuity Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys Limited Employees' Provident Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys Limited Employees' Superannuation Fund Trust

India

Post-employment benefit plan of Infosys Limited

Infosys BPM Limited Employees' Superannuation Fund Trust

India

Post-employment benefit plan of Infosys BPM Limited

Infosys BPM Limited Employees' Gratuity Fund Trust

India

Post-employment benefit plan of Infosys BPM Limited

EdgeVerve Systems Limited Employees' Gratuity Fund Trust

India

Post-employment benefit plan of EdgeVerve Systems Limited

EdgeVerve Systems Limited Employees' Superannuation Fund Trust

India

Post-employment benefit plan of EdgeVerve Systems Limited

Infosys Employees Welfare Trust

India

Controlled trust

Infosys Employee Benefits Trust

India

Controlled trust

Infosys Science Foundation

India

Controlled trust(1) (2)India

Trust jointly controlled by KMPs

Infosys Expanded Stock Ownership Trust

Infosys Foundation

India

Controlled trust

Refer to Note 2.20 for information on transactions with post-employment benefit plans mentioned above.
(1)

Effective January 1, 2022(2)

During the year ended March 31, 2023, the Group contributed ₹354 crore towards CSR. During the quarter ended March 31, 2022, the Group contributed₹2 crore towards CSR.

360

Infosys Integrated Annual Report 2022-23

List of key management personnel

Executive Officers

Whole-time Directors

Nilanjan Roy, Chief Financial Officer

Salil Parekh, Chief Executive Officer and Managing Director

Inderpreet Sawhney, Group General Counsel andChief Compliance Officer

U.B. Pravin Rao, Chief Operating Officer (retired asa Chief Operating Officer and Whole-time director
effective December 12, 2021)

Shaji Mathew (appointed as Group Head - Human Resources
effective March 22, 2023)

Non-whole-time Directors

Krishnamurthy Shankar (retired as Group Head - Human
Resources effective March 21, 2023)

Nandan M. Nilekani

Mohit Joshi (resigned as President effective March 11, 2023
and will be on leave till his last date with the Company which
will be June 9, 2023)

D. Sundaram (appointed as lead independent director
effective March 23, 2023)
Kiran Mazumdar-Shaw (retired as lead independent director
effective March 22, 2023)

Ravi Kumar S (resigned as President effective October 11, 2022)

Micheal Gibbs

Company Secretary

Uri Levine

A.G.S. Manikantha

Bobby Parikh
Chitra Nayak
Govind Iyer (appointed as an independent director
effective January 12, 2023)
Transaction with key management personnel
The compensation to key management personnel which comprise directors and executive officers is as follows :(In ₹ crore)

Particulars

Year ended March 31,
2023

2022

Salaries and other employee benefits to whole-time directors and executive officers (1)(2)

111

134

Commission and other benefits to non-executive / independent directors

16

11

Total

127

145

(1)

Total employee stock compensation expense for the years ended March 31, 2023 and March 31, 2022 includes a charge of ₹49 crore and ₹65 crore respectively,
towards key management personnel (Refer to Note 2.12). Stock compensation expense for the year ended March 31, 2023 includes reversal of expense on
account of resignation / retirement of key management personnel.

(2)

Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole.

Additional information pursuant to para 2 of general instructions for the preparation of Consolidated financial statements
Name of entity

Net assets

Share in profit or loss

Share in othercomprehensive income

as % age ofAmount as % age ofAmountconsolidated (In ₹ crore) consolidated (In ₹ crore)
net assets
profit or loss

Infosys Limited

80.97

67,74588.92

23,268

Infosys BPM Limited

5.30

4,438

3.23

EdgeVerve Systems Limited

1.75

1,467

3.55

Skava Systems Pvt. Ltd.

0.10

81

Infosys Green Forum

0.35

294

Share in total
comprehensive income

as % age ofAmountas % age ofAmountconsolidated (In ₹ crore)
consolidated (In ₹ crore)
other
total
comprehensive
comprehensive
incomeincome101.90

(268)

88.55

23,000

846

7.98

(20)

3.18

826

930

(2.28)

6

3.60

936

0.02

5

–

–

0.02

5

0.02

4

–

–

0.02

5

Indian subsidiaries

Foreign subsidiaries

Infosys Integrated Annual Report 2022-23

361

Consolidated Financial Statements
Name of entity

Net assets

Share in profit or loss

Share in othercomprehensive income

as % age ofAmount as % age ofAmountconsolidated (In ₹ crore) consolidated (In ₹ crore)
net assets
profit or loss

Share in total
comprehensive income

as % age ofAmountas % age ofAmountconsolidated (In ₹ crore)
consolidated (In ₹ crore)
other
total
comprehensive
comprehensive
incomeincomeBrilliant Basics Holdings
Limited

0.08

63

–

–

–

–

–

–

Brilliant Basics Limited

–

1

–

–

–

–

–

–

Blue Acorn iCi Inc

0.22

187

0.20

54

–

–

0.21

54

Infosys BPO Americas LLC

0.05

37

0.09

24

–

–

0.09

24

Portland Group Pty Ltd

0.11

92

0.11

29

–

–

0.11

29

Fluido Denmark A/S––(0.02)(6)––(0.02)(6)

Fluido Oy

0.17

138

0.06

18

–

–

0.07

18

Fluido Norway A/S

0.05

42

0.07

18

–

–

0.07

18

Fluido Slovakia s.r.o.

0.01

6

–

–

–

–

–

–

Fluido Sweden AB

0.03

25

0.08

20

–

–

0.08

20

–

3

0.01

3

–

–

0.01

3

Infosys Fluido U.K., Ltd.

(0.03)(24)(0.04)(10)––(0.04)(10)

GuideVision s.r.o.

Infosys Fluido Ireland, Ltd.

0.09

71

0.06

16

–

–

0.06

16

GuideVision Deutschland
GmbH

–

(2)

(0.02)(6)––(0.02)(6)

GuideVision Suomi Oy

–

2

–

1

–

–

–

1

GuideVision Magyarország
Kft

–

2

–

–

–

–

–

–

GuideVision Polska SP.z.o.o

–

–

–

–

–

–

–

–

GuideVision UK Ltd

–

2

–

–

–

–

–

–

Infosys Germany Holding
GmbH

–

2

–

–

–

–

–

–

0.03

21

0.02

5

–

–

0.02

5

Infosys Americas Inc.,

–

1

–

–

–

–

–

–

Infosys Austria GmbH–1

(0.01)(3)––(0.01)(3)

Infosys (Czech Republic)
Limited s.r.o.

0.13

110

(0.03)(7)––(0.03)(7)

Infosys Limited Bulgaria

–

2

–

1

–

–

–

1

Infosys Technologies(China) Co. Limited

0.54

449

0.45

117

–

–

0.45

117

Infosys Technologies(Shanghai) Company
Limited0.68

565(0.37)(98)––(0.38)(98)

HIPUS Co., Ltd.

0.14

112

0.11

31

–

–

0.12

31

Infosys Public Services, Inc.
USA

1.20

1,008

0.57

153

–

–

0.59

153

Infosys Consulting S.R.L.
(Argentina)(0.04)(33)(0.15)(40)––(0.15)(40)

Infosys Management
Consulting Pty Limited

0.05

37

0.03

10

–

–

0.04

10

Infosys Consulting(Belgium) NV(0.01)(7)(0.01)(3)––(0.01)

(3)

0.14

117

0.06

15

–

–

0.06

15

Infosys Chile SpA

Infosys Consulting Ltda.
362

Infosys Integrated Annual Report 2022-23

Name of entity

Net assets

Share in profit or loss

Share in othercomprehensive income

as % age ofAmount as % age ofAmountconsolidated (In ₹ crore) consolidated (In ₹ crore)
net assets
profit or loss

Infosys Consulting AG

0.16

Innovisor Inc.

133

0.21

Share in total
comprehensive income

as % age ofAmountas % age ofAmountconsolidated (In ₹ crore)
consolidated (In ₹ crore)
other
total
comprehensive
comprehensive
incomeincome62(4.56)

12

0.28

74

–

–

–

–

–

–

–

–

Infosys Consulting GmbH

0.10

89

0.06

17

–

–

0.07

17

Infosys Consulting SAS

0.02

18

0.02

4

–

–

0.02

4

Infy Consulting Company
Ltd.

0.28

231

0.15

40

–

–

0.15

40

Infosys Consulting Holding
AG

0.61

507

0.21

57

–

–

0.22

57

Infy Consulting B.V.

0.05

44

0.01

5

–

–

0.02

5

BASE life science Inc.

–

–

–

–

–

–

–

–

Infosys Consulting S.R.L.
(Romania)

0.09

76

0.06

17

–

–

0.07

17

Infosys Singapore Pte
Limited

(0.61)

(514)

0.60

161

–

–

0.62

161

Infosys Luxembourg S.a.r.l.

0.02

14

0.03

8

–

–

0.03

8

Infosys Technologies S. de
R. L. de C. V.

0.55

463

0.14

37

–

–

0.14

37

Infosys Nova Holdings LLC

3.32

2,773

0.10

25

–

–

0.10

25

Infosys Poland Sp Z.o.o.

0.96

806

0.30

84

–

–

0.32

84

Infosys South Africa (Pty)
Ltd

–

4

–

–

–

–

–

–

Infosys Arabia Limited

–

4

–

–

–

–

–

–

Infosys Technologies(Sweden) AB.

0.15

124

0.12

31

–

–

0.12

31

Infosys Compaz Pte. Ltd

0.28

236

0.12

37

–

–

0.14

37

Infosys Middle East FZ LLC(0.02)(17)(0.01)(2)(1.14)

30.00

1WongDoody, Inc.

0.38

317

0.41

120

–

–

0.46

120

Kaleidoscope Animations

0.13

105

0.06

22

–

–

0.08

22

Kaleidoscope Prototyping

0.03

20

0.03

7

–

–

0.03

7

Infosys Financial Services
GmbH

–

2

–

–

–

–

–

–

Panaya Inc.

0.19

163

0.02

5

–

–

0.02

5

Panaya Ltd.

(0.44)

(370)

0.10

27

–

–

0.10

27

Infosys McCamish Systems
LLC

1.40

1,171

0.95

255

–

–

0.98

255

Simplus Philippines, Inc.

0.02

12

0.01

3

–

–

0.01

3

Simplus Australia Pty Ltd(0.02)

(18)

0.04

11

–

–

0.04

11

Outbox systems Inc. dba
Simplus (US)

0.11

89

0.13

33

–

–

0.13

33

Stater Belgium N.V./S.A.

0.11

91

0.02

6

–

–

0.02

6

HypoCasso B.V.

0.02

20

0.03

9

–

–

0.03

9

Stater Nederland B.V.

0.20

169

0.15

38

–

–

0.15

38

Stater N.V.

0.77

641

0.32

83

–

–

0.32

83

Infosys Integrated Annual Report 2022-23

363

Consolidated Financial Statements
Name of entity

Net assets

Share in profit or loss

Share in othercomprehensive income

as % age ofAmount as % age ofAmountconsolidated (In ₹ crore) consolidated (In ₹ crore)
net assets
profit or loss

Stater Participations B.V.
Stater XXL B.V.

Share in total
comprehensive income

as % age ofAmountas % age ofAmountconsolidated (In ₹ crore)
consolidated (In ₹ crore)
other
total
comprehensive
comprehensive
incomeincome(0.32)

(265)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Infosys Automotive andMobility GmbH & Co. KG(0.64)(535)(0.84)(219)(1.90)

5(0.82)(214)

Infosys Turkey Bilgi
Teknolojileri Limited Sirketi(0.06)(51)(0.22)(58)––(0.22)(58)–

3(0.12)(31)––(0.12)(31)

Infosys (Malaysia) SDN.
BHD.
Simplus ANZ Pty Ltd.

–

–

–

–

–

–

–

–

Stater GMBH

(0.01)(10)(0.03)(7)––(0.03)(7)

Infosys Germany GmbH(0.08)(67)(0.16)(43)––(0.17)(43)

oddity GmbH

0.02

20

–

–

–

–

–

–

–

4

–

1

–

–

–

1

oddity Limited(Taipei)

–

1

–

1

–

–

–

1

oddity space GmbH

0.01

5

–

(1)

–

–

–

(1)

oddity jungle GmbH

0.01

10

(0.02)(5)––(0.02)(5)

oddity code GmbH

–

2

–

–

–

–

–

–

oddity code d.o.o

–

2

–

1

–

–

–

1

oddity waves GmbH

0.02

20

0.03

12

–

–

0.05

12

oddity group services
GmbH

–

1

–

(1)

–

–

–

(1)

Infosys BPM UK Limited

–

1

–

–

–

–

–

–

Infosys Business Solutions
LLC

0.02

14

0.02

5

–

–

0.02

5

oddity (Shanghai) Co., Ltd.

Infosys Public Services
Canada Inc.

0.01

12

–

(1)

–

–

–

(1)

BASE life science AG

0.02

16

–

1

–

–

–

1

BASE life science GmbH

–

(1)

–

(1)

–

–

–

(1)

BASE life science A/S

0.03

25

(0.06)(17)––(0.06)(17)

BASE life science S.A.S

–

1

–

1

–

–

–

1

BASE life science Ltd.

–

1

–

(1)

–

–

–

(1)

BASE life science S.r.l.

–

(1)

–

–

–

–

–

–

BASE life science S.L.

–

1

–

1

–

–

–

1

Panaya Germany GmbH

–

(3)

–

–

–

–

–

–

Infosys Norway

–

–

–

–

–

–

–

–

100.0083,664100.0026,235100.00(262)

100.0025,974

Subtotal
Adjustment arising out ofconsolidation
Controlled trusts
Non-controlling Interests
Total

364

(8,421)(2,072)765(1,308)

164

(68)

–

(68)

75,40724,095503

24,598388
75,795

13
24,10811514

24
24,622

Infosys Integrated Annual Report 2022-23

2.26 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 ofbusinesses in India, Japan and China, Infosys Public Services and 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. 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 isotherwise recognized.
Disclosure of revenue by geographic locations is given in Note 2.18, Revenue from operations.

Business segments
Years ended March 31, 2023 and March 31, 2022 :(In ₹ crore)

Particulars

Revenuefrom
operations
Identifiable
operatingexpenses
Allocated
expenses
Segment
operatingincomeFinancial
Services (1)Retail(2)

Communication(3)

Energy, Manufacturing
Utilities,
ResourcesandServices

Hi-Tech

Life
Sciences (4)All othersegments (5)Total

43,763

21,20418,086

18,53919,035

11,867

10,085

4,188

1,46,767

38,902

17,734

15,182

14,484

13,336

10,036

8,517

3,450

1,21,641

24,99010,892

11,101

9,923

12,493

6,959

5,834

2,801

84,993

22,119

8,632

9,179

7,673

8,457

5,952

4,840

2,357

69,209

7,930

3,916

3,226

3,461

3,429

1,949

1,685

1,048

26,644

6,469

2,972

2,631

2,586

2,471

1,589

1,297

926

20,941

10,843

6,396

3,759

5,155

3,113

2,959

2,566

339

35,130

10,314

6,130

3,372

4,225

2,408

2,495

2,380

167

31,491

Infosys Integrated Annual Report 2022-23

365Consolidated Financial Statements
Particulars

Financial
Services (1)Retail (2)Communication(3)Energy, Manufacturing
Utilities,
ResourcesandServices

Hi-Tech

Life
Sciences (4)All othersegments (5)Total

Unallocable expenses

4,225

Other income, net (Refer to Note 2.17)

2,701

3,476
2,295
Finance cost

284
200

Profit before tax

33,322
30,110

Income tax expense

9,214
7,964

Net profit

24,10822,146

Depreciation and amortization expense

4,225
3,476

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 Healthcare(5)

Others include operating segments of businesses in India, Japan and China, Infosys Public Services and other enterprises in Public Services

Significant clients
No client individually accounted for more than 10% of the revenues for the years ended March 31, 2023 and March 31, 2022, respectively.

2.27 Function-wise classification of Consolidated Statement of Profit and Loss(In ₹ crore)
Particulars

Note

Revenue from operations

2.18

Year ended March 31,
2023

2022

1,46,767

1,21,641

Cost of sales

1,02,353

81,998Gross profit

44,414

39,643Operating expenses
Selling and marketing expenses

6,249

5,156

General and administration expenses

7,260

6,472

13,509

11,62830,90528,015

2,701

2,295

284

200

33,322

30,110Total operating expenses
Operating profit
Other income, net
Finance cost
Profit before tax

366

2.19

Infosys Integrated Annual Report 2022-23

Particulars

NoteYear ended March 31,
2023

2022

Tax expense:
Current tax

2.17

9,287

7,811

Deferred tax

2.17

(73)

153

24,10822,146

Profit for the year
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability / asset, net

2.22

8

(85)

Equity instruments through other comprehensive income, net

2.5

(7)

96

1

11

2.11

(7)

(8)

776

228

2.5

(256)

(49)

Items that will be reclassified subsequently to profit or loss
Fair value changes on derivatives designated as cash flow hedge, net
Exchange differences on translation of foreign operations, net
Fair value changes on investments, net

513

171

514

182

24,622

22,32824,095

22,110Total other comprehensive income / (loss), net of tax
Total comprehensive income for the year
Profit attributable to
Owners of the Company

13

36

24,10822,146

Owners of the Company

24,59822,293

Non-controlling interests

24

35

24,622

22,328Non-controlling interests
Total comprehensive income attributable to:for and on behalf of the Board of Directors of Infosys Limited
D. Sundaram

Salil Parekh

Bobby Parikh

Nilanjan Roy

Jayesh Sanghrajka

A.G.S. Manikantha

Lead Independent Director

Bengaluru
April 13, 2023

Chief Financial Officer

Infosys Integrated Annual Report 2022-23

Chief Executive Officer
and Managing Director

Executive Vice President and
Deputy Chief Financial Officer

Director

Company Secretary367

May 31, 2023
Dear Member,
You are cordially invited to attend the 42nd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) to be heldon Wednesday, June 28, 2023 at 4:00 p.m. IST through video conference and other audio-visual means (“VC”).
The Notice of the meeting, containing the business to be transacted, is enclosed herewith. As per Section 108 of the Companies Act, 2013(“the Act”), read with the related rules and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,as amended (“the LODR Regulations”), the Company is pleased to provide its members the facility to cast their vote by electronic meanson all resolutions set forth in the Notice.

Very truly yours,

Sd/Nandan M. Nilekani
Chairman

Enclosures:
1. Notice of the 42nd Annual General Meeting
2. Instructions for participation through VC
3. Instructions for e-voting

Note: Attendees who require technical assistance to access and participate in the meeting through VC are requested to contact either of these helpline numbers:+91 80 4156 5555 / +91 80 4156 5777

INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261
Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com

Notice of the 42nd Annual General Meeting
Notice is hereby given that the 42nd Annual General Meeting (AGM) of the members of Infosys Limited (“the Company”) will be held on
Wednesday, June 28, 2023, at 4:00 p.m. IST through video conference / other audio-visual means (“VC”) to transact the following business:

Ordinary business
Item no. 1 – Adoption of financial statements
To consider and adopt the audited financial statements (including the consolidated financial statements) of the Company for thefinancial year ended March 31, 2023 and the reports of the Board of Directors (“the Board”) and auditors thereon.

Item no. 2 – Declaration of dividend
To declare a final dividend of ₹17.5 per equity share for the year ended March 31, 2023.

Item no. 3 – Appointment of Salil Parekh as a director, liable to retire by rotation
To appoint a director in place of Salil Parekh (DIN: 01876159 ), who retires by rotation and being eligible, seeks reappointment.
Explanation: Based on the terms of appointment, executive directors and the non-executive and non-independent chairman are subject
to retirement by rotation. Salil Parekh, Chief Executive Officer and Managing Director, whose office of directorship is liable to retire at theensuing AGM, being eligible, seeks reappointment as a director. Based on the performance evaluation and the recommendation of theNomination and Remuneration Committee, the Board recommends his reappointment as a director.
To consider and if thought fit, to pass the following resolution as an ordinary resolution:
RESOLVED THAT pursuant to the provisions of Section 152 and other applicable provisions of the Companies Act, 2013, theapproval of members of the Company, be and is hereby accorded to reappoint Salil Parekh (DIN: 01876159) as a director, who is liable
to retire by rotation.

Special business
Item no. 4 - Appointment of Helene Auriol Potier as an Independent Director of the Company
To consider and if thought fit, to pass the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152, 161, Schedule IV and other applicable provisions of the Companies
Act, 2013 (“the Act”) read with the Rules framed thereunder, and applicable provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, (“the LODR Regulations”) [including any statutory modification(s) or re-enactment(s) thereof, for thetime being in force], and Articles of Association of the Company, approval and recommendation of the Nomination and Remuneration
Committee and that of the Board, Helene Auriol Potier (DIN: 10166891), who was appointed as an Additional Director in the capacity ofan Independent Director with effect from May 26, 2023, who meets the criteria for independence under Section 149(6) of the Act andthe Rules made thereunder and Regulation 16(1)(b) of the LODR Regulations and in respect of whom the Company has received a noticein writing from a member under Section 160 of the Act, be and is hereby appointed as an Independent Director of the Company for aperiod of 3 (three) years till May 25, 2026, and that she shall not be liable to retire by rotation.
RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers to any committee of directors
with power to further delegate to any other Officer(s) / Authorized Representative(s) of the Company to do all acts, deeds and things andtake all such steps as may be necessary, proper or expedient to give effect to this resolution.

2 | Notice of the 42nd Annual General Meeting

Infosys Limited

Item no. 5 – Reappointment of Bobby Parikh as an independent director
To consider and if thought fit, to pass the following resolution as a special resolution:
RESOLVED THAT pursuant to the provisions of Sections 149, 152 and other applicable provisions of the Companies Act, 2013 (“theAct”) read with the Rules made thereunder and applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, (“the LODR Regulations”) [including any statutory modification(s) or re-enactment(s) thereof, for the time being inforce], and Articles of Association of the Company, approval and recommendation of the Nomination and Remuneration Committee,
and that of the Board, Bobby Parikh (DIN: 00019437), who holds office as an independent director up to July 14, 2023, be and is hereby
reappointed as an independent director, not liable to retire by rotation, for a second term of 5 (five) years with effect from July 15, 2023
up to July 14, 2028.
RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers to any committee of directors
with power to further delegate to any other officer(s) / authorized representative(s) of the Company to do all acts, deeds and things andtake all such steps as may be necessary, proper or expedient to give effect to this resolution.
INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261 Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com

by order of the Board of Directors
for Infosys Limited
Sd/A.G.S. Manikantha
Company Secretary

May 31, 2023

Notes
1. Pursuant to the General Circular No. 10/2022 dated December 28, 2022, issued by the Ministry of Corporate Affairs (MCA) and Circular
SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated January 5, 2023 issued by SEBI (hereinafter collectively referred to as “the Circulars”),
companies are allowed to hold AGM through VC, without the physical presence of members at a common venue. Hence, incompliance with the Circulars, the AGM of the Company is being held through VC.
2. A member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his / her behalf and the proxyneed not be a member of the Company. Since the AGM is being held in accordance with the Circulars through VC, the facility for theappointment of proxies by the members will not be available.
3. Participation of members through VC will be reckoned for the purpose of quorum for the AGM as per Section 103 of the Act.
4. Members of the Company under the category of Institutional Investors are encouraged to attend and vote at the AGM through VC.
Corporate members intending to authorize their representatives to participate and vote at the meeting are requested to send acertified copy of the Board resolution / authorization letter to the Scrutinizer by email to evoting@infosys.com with a copy marked to
evoting@nsdl.co.in.
5. The register of directors and key managerial personnel (KMP) and their shareholding, maintained under Section 170 of the Act, andthe register of contracts or arrangements in which the directors are interested, maintained under Section 189 of the Act, will beavailable electronically for inspection by the members during the AGM. All documents referred to in the Notice will also be available
for electronic inspection without any fee from the date of circulation of this Notice up to the date of AGM, i.e. June 28, 2023. Members
seeking to inspect such documents can send an email to investors@infosys.com.
6. Members whose shareholding is in electronic mode are requested to notify any change in address or bank account details to theirrespective depository participant(s) (DP). Members whose shareholding is in physical mode are requested to opt for the Electronic
Clearing System (ECS) mode to receive dividend on time in line with the Circulars. We urge members to utilize the ECS for receiving
dividends. Please refer to point no. 16 for the process to be followed for updating bank account details.
7. Members may note that the Board, at its meeting held on April 13, 2023, has recommended a final dividend of ₹17.5 per share. The
record date for the purpose of final dividend for fiscal 2023 is June 2, 2023. The final dividend, once approved by the members in theensuing AGM, will be paid on July 3, 2023, electronically through various online transfer modes to those members who have updated
their bank account details. For members who have not updated their bank account details, dividend warrants / demand drafts /cheques will be sent to their registered addresses. To avoid delay in receiving dividend, members are requested to update their KYC
with their depositories (where shares are held in dematerialized mode) and with the Company’s Registrar and Transfer Agent (RTA)(where shares are held in physical mode) to receive the dividend directly into their bank account on the payout date.
8. Members may note that the Income-tax Act, 1961, (“the IT Act”) as amended by the Finance Act, 2020, mandates that dividend paid or
distributed by a company on or after April 1, 2020 shall be taxable in the hands of members. The Company shall therefore be required
to deduct tax at source (TDS) at the time of making the payment of final dividend. To enable us to determine the appropriate TDS
rate as applicable, members are requested to submit relevant documents, as specified in the below paragraphs, in accordance withthe provisions of the IT Act.

Infosys Limited

Notice of the 42nd Annual General Meeting | 3

For resident shareholders, taxes shall be deducted at source under Section 194 of the IT Act as follows:
Members having valid Permanent Account Number (PAN)

10%* or as notified by the Government of India (GOI)

Members not having PAN / valid PAN

20% or as notified by the GOI* As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein the higher rate of tax (twice the specified rate) would beapplicable on payment made to a shareholder who is classified as ‘Specified Person’ as defined under section 206AB of the Finance Act, 2021.
* As per section 139AA of the IT Act, every person who has been allotted a PAN and who is eligible to obtain Aadhaar, shall be required to link the PAN with
Aadhaar. In case of failure to comply with this, the PAN allotted shall be deemed to be invalid / inoperative and he shall be liable to all consequences underthe IT Act and tax shall be deducted at the higher rates as prescribed under the IT Act.

However, no tax shall be deducted on the dividend payable to resident individual shareholders if the total dividend to be received
by them during financial year 2023-24 does not exceed ₹5,000, and also in cases where members provide Form 15G / Form 15H (Form
15H is applicable to resident individual shareholders aged 60 years or more) subject to conditions specified in the IT Act. Resident
shareholders may also submit any other document as prescribed under the IT Act to claim a lower / nil withholding of tax. PAN is
mandatory for members providing Form 15G / 15H or any other document as mentioned above.
For non-resident shareholders, taxes are required to be withheld in accordance with the provisions of Section 195 and otherapplicable sections of the IT Act, at the rates in force. The withholding tax shall be at the rate of 20%** (plus applicable surcharge
and cess) or as notified by the GOI on the amount of dividend payable. However, as per Section 90 of the IT Act, non‑resident
shareholders have the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA), read with
Multilateral Instrument (MLI) between India and the country of tax residence of the shareholders, if they are more beneficial to them.
For this purpose, i.e. to avail the benefits under the DTAA read with MLI, non-resident shareholders will have to provide the following:
•
•
•

•
•
•

Copy of the PAN card allotted by the Indian income tax authorities duly attested by the shareholders or details as prescribedunder rule 37BC of the Income-tax Rules, 1962
Copy of the Tax Residency Certificate for financial year 2023-24 obtained from the revenue or tax authorities of the country of tax
residence, duly attested by shareholders
Electronic Form 10F as per notification no. 03/2022 dated July 16, 2022 issued by the Central Board of Direct Tax [Notification canbe read under notification-no-3-2022-systems.pdf (incometaxindia.gov.in)]. Form 10F can be obtained electronically through thee-filing portal of the income tax website at https://www.incometax.gov.in/iec/foportal
Self-declaration by the shareholders of having no permanent establishment in India in accordance with the applicable tax treaty
Self-declaration of beneficial ownership by the non-resident shareholder
Any other documents as prescribed under the IT Act for lower withholding of taxes, if applicable, duly attested by theshareholders

In case of Foreign Institutional Investors (FII) / Foreign Portfolio Investors (FPI), tax will be deducted under Section 196D of the IT Act
at the rate of 20%** (plus applicable surcharge and cess) or the rate provided in relevant DTAA, read with MLI, whichever is more
beneficial, subject to the submission of the above documents, if applicable.
** As per the Finance Act, 2021, Section 206AB has been inserted effective July 1, 2021, wherein the higher rate of tax (twice the specified rate) would beapplicable on payment made to a shareholder who is classified as ‘Specified Person’ as defined under the provisions of the aforesaid Section. However, incase of a non-resident shareholder or a non-resident FPI / FII, the higher rate of tax as mentioned in section 206AB shall not apply if such non-resident does
not have a permanent establishment in India.

The aforementioned documents are required to be uploaded on the shareholder portal at https://www.infosys.com/investors/
shareholder-services/dividend-tax.html on or before June 9, 2023. Members are requested to visit https://www.infosys.com/
investors/shareholder-services/dividend-tax.html for more instructions and information on this subject. No communication would be
accepted from members after June 9, 2023, regarding tax-withholding matters. Shareholders may write to dividend.tax@infosys.com
for any clarifications on this subject.
TDS certificates in respect of tax deducted, if any, can be subsequently downloaded from the shareholder’s portal. Shareholders canalso check their tax credit in Form 26AS from the e-filing account at https://www.incometax.gov.in/iec/foportal or “View Your Tax
Credit” on https://www.tdscpc.gov.in.
9. Members are requested to address all correspondence, including dividend-related matters, to RTA, KFin Technologies Limited, Unit:
Infosys Limited, Selenium Tower B, Plot 31-32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad-500 032.
10. Members wishing to claim dividends that remain unclaimed are requested to correspond with the RTA as mentioned above, orwith the Company Secretary, at the Company’s registered office or at investors@infosys.com. Members are requested to note that
dividends that are not claimed within seven years from the date of transfer to the Company’s Unpaid Dividend Account, will betransferred to the Investor Education and Protection Fund (IEPF). Shares on which dividend remains unclaimed for seven consecutive
years shall be transferred to the IEPF as per Section 124 of the Act, read with applicable IEPF rules.
11. In compliance with Section 108 of the Act, read with the corresponding rules, Regulation 44 of the LODR Regulations and in termsof SEBI circular no. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020, the Company has provided a facility to its members
to exercise their votes electronically through the electronic voting (e-voting) facility provided by the National Securities Depository

4 | Notice of the 42nd Annual General Meeting

Infosys Limited

Limited (NSDL). Members who have cast their votes by remote e-voting prior to the AGM may participate in the AGM but shall not be
entitled to cast their votes again. The manner of voting remotely by members holding shares in dematerialized mode, physical modeand for members who have not registered their email addresses is provided in the ‘Instructions for e-voting’ section which forms
part of this Notice. The Board has appointed Hemanth, Holla & Co., (Membership No. FCS 6374) (CP No. 6519) Practicing Company
Secretaries, as the scrutinizer (“Scrutinizer”) for conducting the e-voting process in a fair and transparent manner.
12. Members holding shares either in physical or dematerialized form, as on cut-off date, i.e. June 21, 2023, may cast their votes
electronically. The e-voting period commences on Friday, June 23, 2023 (9:00 a.m. IST) and ends on Tuesday, June 27, 2023 (5:00 p.m.
IST). The e-voting module will be disabled by NSDL thereafter. Members will not be allowed to vote again on any resolution on which
vote has already been cast. The voting rights of members shall be proportionate to their share of the paid-up equity share capital of
the Company as on the cut-off date, i.e. June 21, 2023. A person who is not a member as on the cut-off date is requested to treat thisNotice for information purposes only.
13. The facility for voting during the AGM will also be made available. Members present in the AGM through VC and who have not casttheir vote on the resolutions through remote e-voting and are otherwise not barred from doing so, shall be eligible to vote throughthe e-voting system during the AGM.
14. Any person holding shares in physical form, and non-individual shareholders who acquire shares of the Company and become
members of the Company after the Notice is sent and holding shares as of the cut-off date, i.e. June 21, 2023, may obtain the login ID
and password by sending a request to evoting@nsdl.co.in. However, if he / she is already registered with NSDL for remote e-voting,then he / she can use his / her existing user ID and password for casting the vote. In case of individual shareholders holding securities
in demat mode, who acquire shares of the Company and become members of the Company after the Notice is sent and holding
shares as of the cut-off date i.e. June 21, 2023, may follow steps mentioned in the Notice under ‘Instructions for e-voting’.
15. In compliance with the Circulars, the Integrated Annual Report 2022-23, the Notice of the 42nd AGM, and instructions for e-voting
are being sent through electronic mode to those members whose email addresses are registered with the Company / depository
participant(s) (DP).
16. We urge members to support our commitment to environmental protection by choosing to receive the Company’s communication
through email. Members holding shares in demat mode, who have not registered their email addresses are requested to register
their email addresses with their respective DP, and members holding shares in physical mode are requested to update their email
addresses with the Company’s RTA, KFin Technologies Limited at einward.ris@kfintech.com, to receive copies of the Integrated
Annual Report 2022-23 in electronic mode. Members may follow the process detailed below for registration of email ID to obtain thereport and update of bank account details for the receipt of dividend.
Type of holder
Physical

Demat

Process to be followed
For availing the following investor services, send a written request in the prescribed forms to the RTA of the Company,
KFin Technologies Limited either by email to einward.ris@kfintech.com or by post to
KFin Technologies Limited, Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad-500 032
Form for availing investor services to register PAN, email address, bank details and other KYC details orchanges / update thereof for securities held in physical mode

Form ISR-1

Update of signature of securities holder

Form ISR-2

For nomination as provided in Rule 19(1) of the Companies (Share Capital and Debentures) Rules, 2014

Form SH-13

Declaration to opt out

Form ISR-3

Cancellation of nomination by the holder(s) (along with ISR-3) / Change of nominee

Form SH-14

Form for requesting issue of duplicate certificate and other service requests for shares / debentures /bonds, etc., held in physical form

Form ISR-4

Please contact your DP and register your email address and bank account details in your demat account,as per the process advised by your DP.

17. Members may also note that the Notice of the 42nd AGM and the Integrated Annual Report 2022-23 will also be available on the
Company’s website, https://www.infosys.com/investors/reports-filings.html, websites of the stock exchanges, i.e. BSE and NSE, atwww.bseindia.com and www.nseindia.com, respectively, and on the website of NSDL, https://www.evoting.nsdl.com.
18. Additional information, pursuant to Regulation 36 of the LODR Regulations, in respect of the directors seeking appointment /reappointment at the AGM, forms part of this Notice.

Infosys Limited

Notice of the 42nd Annual General Meeting | 5

19. SEBI has mandated the submission of PAN, KYC details and nomination by holders of physical securities by October 1, 2023, andlinking PAN with Aadhaar by June 30, 2023 vide its circular dated March 16, 2023. Shareholders are requested to submit their PAN,KYC and nomination details to the Company’s RTA, KFin Technologies Limited, at einward. ris@kfintech.com. The forms for updating
the same are available at https://www.infosys.com/investors/shareholder-services/investors-service.html.
Members holding shares in electronic form are, therefore, requested to submit their PAN to their DP.
In case a holder of physical securities fails to furnish PAN and KYC details before October 1, 2023 or link their PAN with Aadhaar
before June 30, 2023, in accordance with the SEBI circular dated March 16, 2023, RTA is obligated to freeze such folios. The securities
in the frozen folios shall be eligible to receive payments (including dividend) and lodge grievances only after furnishing thecomplete documents. If the securities continue to remain frozen as on December 31, 2025, the RTA / the Company shall refer suchsecurities to the administering authority under the Benami Transactions (Prohibitions) Act, 1988, and / or the Prevention of Money
Laundering Act, 2002.
20. As per Section 72 of the Act, the facility for submitting nomination is available for members in respect of the shares held by them.
Members who have not yet registered their nomination are requested to register the same by submitting Form SH-13. The form canbe downloaded from the Company’s website at https://www.infosys.com/investors/shareholder-services/documents/form-sh-13-14.
pdf. Members are requested to submit these details to their DP in case the shares are held by them in electronic form, and to the RTA,
in case the shares are held in physical form.
21. The Scrutinizer will submit his report to the Chairman of the Company (“the Chairman”) or to any other person authorized by
the Chairman after the completion of the scrutiny of the e-voting (votes cast during the AGM and votes cast through remote
e-voting), not later than 48 hours from the conclusion of the AGM. The result declared along with the Scrutinizer’s report shall be
communicated to the stock exchanges, NSDL and RTA, and will also be displayed on the Company’s website, www.infosys.com.
22. Since the AGM will be held through VC in accordance with the Circulars, the route map, proxy form and attendance slip are notattached to this Notice.
INFOSYS LIMITED
CIN: L85110KA1981PLC013115
Electronics City, Hosur Road
Bengaluru 560 100, India
Tel: 91 80 2852 0261 Fax: 91 80 2852 0362
investors@infosys.com
www.infosys.com

by order of the Board of Directors
for Infosys Limited
Sd/A.G.S. Manikantha
Company Secretary

May 31, 2023

6 | Notice of the 42nd Annual General Meeting

Infosys Limited

Explanatory statement
Item no. 4 - Appointment of Helene Auriol Potier as an Independent Director of the Company
Pursuant to Section 161 of the Companies Act, 2013, the Board, on May 26, 2023, appointed Helene Auriol Potier as an Additional Director
in the capacity of Independent Director of the Company for a term of 3 (three) years with effect from May 26, 2023 to May 25, 2026 (bothdays inclusive) subject to the approval of the shareholders through a special resolution.
The Company has received the following from Helene:(i) Consent in writing to act as Director in Form DIR-2 pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors)
Rules, 2014 (“the Appointment Rules”);(ii) Intimation in Form DIR-8 in terms of the Appointment Rules to the effect that she is not disqualified under sub-section (2) of
Section 164 of the Act;(iii) A declaration to the effect that she meets the criteria of independence as provided in sub-section (6) of Section 149 of the Act andunder the LODR Regulations;(iv) Declaration pursuant to BSE Circular No. LIST/COMP/14/2018-19 dated June 20, 2018, and NSE Circular No. NSE/ CML/2018/24
dated June 20, 2018, that she has not been debarred from holding office of a director by virtue of any order passed by SEBI or any
other such authority;(v) Confirmation that she is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair
or impact her ability to discharge her duties as an Independent Director of the Company;(vi) A declaration that she is in compliance with Rules 6(1) and 6(2) of the Companies (Appointment and Qualification of Directors)
Rules, 2014, with respect to her registration with the data bank of independent directors maintained by the Indian Instituteof Corporate Affairs.
The Company has received a notice in writing by a member proposing her candidature under Section 160 of the Act.
The Nomination and Remuneration Committee (NRC) had previously finalized the desired attributes for the selection of the independent
director(s). Based on those attributes, the NRC recommended the candidature of Helene Auriol Potier. In the opinion of the Board,
Helene fulfils the conditions for independence specified in the Act, the Rules made thereunder, the LODR Regulations and suchother laws / regulations for the time being in force, to the extent applicable to the Company. The Board noted that Helene’s skills,
background and experience are aligned to the role and capabilities identified by the NRC and that she is eligible for appointment as an
Independent Director.
The Board was satisfied that the appointment of Helene is justified due to the following reasons:•••

She has global career spanning multiple geographies in digital transformation and in telecommunications industry.
She has extensive experience in Technology, ESG and Corporate Governance in key global markets.
Her experience of serving on the diversified boards of various multinational companies.

A copy of the draft letter for the appointment of Helene Auriol Potier as an Independent Director setting out the terms and conditions isavailable for electronic inspection by the members during normal business hours on working days up to Wednesday, June 28, 2023.
The resolution seeks the approval of members for the appointment of Helene Auriol Potier as an Independent Director of the Company
for a term of 3 (three) years effective May 26, 2023 to May 25, 2026 (both days inclusive) pursuant to Sections 149, 152 and otherapplicable provisions of the Act and the Rules made thereunder including any statutory modification(s) or re-enactment(s) thereof) andshe shall not be liable to retire by rotation.
In compliance with Section 149 read with Schedule IV to the Act and Regulation 25 of the LODR Regulations, the approval of theMembers is sought for the appointment of Helene Auriol Potier as an Independent Director of the Company, as a special resolution.
No director, KMP or their relatives except Helene, to whom the resolution relates, is interested in or concerned, financially or otherwise, in
passing the proposed resolution set out in item no. 4.
The Board recommends the special resolution as set out in Item no. 4 of this notice for the approval of members.

Infosys Limited

Notice of the 42nd Annual General Meeting | 7

Item no. 5 – Reappointment of Bobby Parikh as an independent director
Bobby Parikh was appointed as an independent director of the Company pursuant to Section 149 of the Act, read with the Companies(Appointment and Qualification of Directors) Rules, 2014 (“the Appointment Rules”) by the Board, effective July 15, 2020, to hold office
up to July 14, 2023. The members at the AGM held on June 19, 2021 had approved the same. He is due for retirement from the firstterm as an independent director on July 14, 2023. The Nomination and Remuneration Committee (NRC), after taking into account theperformance evaluation of Bobby Parikh during his first term of 3 (three) years and considering his knowledge, acumen, expertise,
experience and substantial contribution and time commitment, has recommended to the Board his reappointment for a second term of
5 (five) years. The NRC has considered his diverse skills, leadership capabilities, expertise in governance, finance, risk management, tax& regulatory advisory, business reorganization, and vast business experience, among others, as being key requirements for this role. Inview of the above, the NRC and the Board are of the view that Bobby Parikh possesses the requisite skills and capabilities, which would
be of immense benefit to the Company, and hence, it is desirable to reappoint him as an independent director.
Based on the recommendation of the NRC, the Board, recommended the reappointment of Bobby Parikh as an independent director, notliable to retire by rotation, for a second term of 5 (five) years effective July 15, 2023, to July 14, 2028 (both days inclusive).
As per Section 149 of the Act, an independent director may hold office for two terms up to 5 (five) consecutive years each.
Bobby Parikh fulfills the requirements of an independent director as laid down under Section 149(6) of the Act, and Regulation 16(1)(b) of
the LODR Regulations.
The Company has received notice in writing pursuant to Section 160 of the Act, from a member proposing the reappointment of Bobby
Parikh for the office of independent director under the provisions of Section 149 of the Act. The Company has received all statutory
disclosures / declarations from Bobby Parikh, including(i) Consent in writing to act as director in Form DIR-2, pursuant to Rule 8 of the Appointment Rules,(ii) Intimation in Form DIR-8 in terms of the Appointment Rules to the effect that he is not disqualified under sub-section (2) of Section
164 of the Act, and(iii) A declaration to the effect that he meets the criteria of independence as provided in sub-section (6) of Section 149 of the Act.
In the opinion of the Board and based on its evaluation, Bobby Parikh fulfils the conditions specified in the Act, and Rules madethereunder and LODR Regulations for his reappointment as an independent director of the Company and he is independent of theManagement of the Company.
A copy of the draft letter for the reappointment of Bobby Parikh as an Independent Director setting out the terms and conditions isavailable for electronic inspection by the members during normal business hours on working days up to Wednesday, June 28, 2023.
The Board considers that the continued association of Bobby Parikh would be of immense benefit to the Company and is desirable tocontinue to avail his services as an independent director. The resolution seeks the approval of members for the reappointment of Bobby
Parikh as an independent director of the Company, for a second term of 5 (five) years effective July 15, 2023, to July 14, 2028, (bothdays inclusive) pursuant to Sections 149, 152 and other applicable provisions of the Act and the Rules made thereunder (including any
statutory modification(s) or re-enactment(s) thereof) and his office shall not be liable to retire by rotation.
No director, KMP or their relatives except Bobby Parikh, to whom the resolution relates, is interested in or concerned, financially orotherwise, in passing the proposed resolution set out in item no. 5.
The Board recommends the special resolution as set out in Item no. 5 of this notice for the approval of members.

8 | Notice of the 42nd Annual General Meeting

Infosys Limited

Additional information on directors recommended for appointment / reappointment as required under
Regulation 36 of the LODR Regulations and applicable secretarial standards

Salil Parekh

Chief Executive Officer and Managing Director

Salil is the Chief Executive Officer and Managing Director (CEO &MD) of Infosys and has been in this role since January 2018. Salilhas successfully led the Company over the last five years.
Salil, as CEO & MD, sets and evolves the strategic direction for theCompany and its portfolio of offerings, while nurturing a strong
leadership team to drive its execution.
Salil has over 30 years of global experience in the IT
services industry with a strong track record of driving
digital transformation, growth, automation, profitability,
executing business turnarounds, managing successfulacquisitions, and creating value.
Prior to this role, Salil was a member of the Group Executive
Board at Capgemini, where he held several leadership positionsfor 25 years. Salil was also a Partner at Ernst & Young LLP and
is widely credited for bringing scale and value to the Indian
operations of the consultancy firm.
Salil holds Master of Engineering degrees in Computer Scienceand Mechanical Engineering from Cornell University, and a
Bachelor of Technology degree in Aeronautical Engineering fromthe Indian Institute of Technology, Bombay.

Age: 58 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Strategy, Board service & governance,
Financial, Diversity, Global business, Sales & marketing,
Cybersecurity, Mergers & Acquisitions, Risk management, andSustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: None
Listed entities (other than the Infosys Group) in which Salil holds
directorship and committee membership: Nil
Listed entities from which Salil has resigned in thepast three years: Nil
Remuneration proposed to be paid: As per the resolution
approved in Item no. 6 of the 41st Annual General Meeting Noticeread with explanatory statement thereto-https://www.infosys.
com/investors/reports-filings/documents/agm-notice2022.pdf.
Key terms and conditions of appointment: As per the resolution
approved in Item no. 6 of the 41st Annual General Meeting Noticeread with explanatory statement thereto: https://www.infosys.
com/investors/reports-filings/documents/agm-notice2022.pdf .
Date of first appointment to the Board, last drawn remunerationand number of Board meetings attended: Salil was first
appointed to the Board on January 2, 2018, as CEO & MD, andreappointed on July 1, 2022 as CEO & MD. The details pertaining
to his appointment, remuneration, and number of meetings
attended are provided in the Corporate governance report sectionof the Integrated Annual Report 2022-23.

Infosys Limited

Notice of the 42nd Annual General Meeting | 9

Helene Auriol Potier
Independent Director

Helene Auriol Potier has built her career in digital technologies
and in the telecommunications industry. A truly global career
spanning multiple geographies, including the United States,
Europe, Africa, and Asia.
She started her career in New York in telecommunications in
1986. In 1990, Helene joined the Canadian mobile technology
company Nortel Networks Corporation where she spent 15 years
and held various senior leadership positions among which werealso Vice President Sales Mobile Division Worldwide and Vice
President Services & Operations EMEA.
In 2005, Helene joined Dell Inc. She was the CEO Africa,
Mediterranean and CEE.
She joined Microsoft Corporation in 2008. During her 10 years
tenure at Microsoft, she served in various senior leadershipcapacities including CEO Microsoft Singapore and, Managing
Director Artificial Intelligence Europe.
From November 2018 to December 2020, she was Executive VicePresident in charge of International Business B2B for Orange.
Helene is often called to speak on the topics of digitaltransformation, corporate governance and ESG.

Age: 60 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Board service & governance,
Financial, Diversity, Global Business, Sales & marketing,
Cybersecurity, Mergers & Acquisitions, Risk management, andSustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: Nil
Listed entities (other than the Infosys Group) in which Heleneholds directorship and committee membership: As per the LODR
Regulations, an independent director may hold directorships
in 7 (seven) Indian listed companies. Helene does not hold any
directorships in any Indian listed entities. However, she holds
3 (three) directorships in overseas listed entities. Details of her
directorships are given below:
Board Membership in listed entities
IndianOverseasNil• Accor S.A.
• Randstad N.V.
• Safran S.A.

She served as independent director on the boards of US listedcompany Mimecast Limited until May 2022, Ispen S.A. until May
2018 and Faiveley Transport S.A. until November 2016.

Listed entities from which Helene has resigned in thepast three years: Nil

Helene received a Master of Science in Engineering from Telecom
Paris and an Executive MBA from INSEAD.

Shareholding in the Company as on the date of her appointmenti.e., May 26, 2023: Nil

Helene currently serves as independent non-executive director
on the boards of Safran S.A., Accor S.A., Randstad N.V. and Oddo
BHF S.C.A. She chairs the Accor board ESG committee and Oddo
BHF board compensation committee. Helene is also ESG co-chairand board member at Institut Français des Administrateurs, (IFA),
the French association of corporate directors. She is also a senioradvisor at a leading global private equity firm.

Remuneration proposed to be paid: Shareholders at the 34th
AGM, held on June 22, 2015, approved a sum not exceeding
1% of the net profit of the Company per annum, calculated inaccordance with the provisions of Section 198 of the Act, to be
paid and distributed among some or all of the non-executive
directors of the Company in a manner decided by the Board.
Independent directors are paid remuneration as per the criteria
set by the Board from time to time in accordance with theshareholders’ approval at the 34th AGM. The detailed criteria
is available in the Nomination and Remuneration Policy of theCompany. The Policy can be accessed from https://www.infosys.
com/investors/corporate-governance/documents/nominationremuneration-policy.pdf.
Key terms and conditions of appointment: As per the
resolution in Item no. 4 of this Notice, read with the
explanatory statement thereto.
Date of first appointment to the Board, last drawn remunerationand number of Board meetings attended: It is proposed toappoint Helene as an Independent Director for her first term on
the Board and hence, these details are not applicable.
Skills and capabilities required for the role and the mannerin which Henele meets such requirements: As per the
resolution at Item no. 4 of this Notice, read with the
explanatory statement thereto.

10 | Notice of the 42nd Annual General Meeting

Infosys Limited

Bobby Parikh

Independent Director

Bobby Parikh is the Managing Partner of Bobby Parikh Associates,
a boutique firm focused on providing strategic tax andregulatory advisory services.

than the limit prescribed under the LODR Regulations. Detailsof his directorships and committee memberships in listed
entities are given below:

Over the years, Bobby has had extensive experience in advisingclients across a range of industries. India has witnessedsignificant deregulation and a progressive transformation of its
policy framework. An area of focus for Bobby has been to workwith businesses, both Indian and multinational, in interpreting
the implications of the deregulation as well as the changes to
India’s policy framework, to help businesses better leverage
opportunities that have become available and to address
challenges that resulted from such changes. He has led teams
that have advised clients in the areas of entry strategy (MNCs
into India and Indian companies into overseas markets), businessmodel identification, structuring a business presence, mergers,
acquisitions and other business reorganizations.

Directorships:

Committee memberships

Biocon Limited

1. Audit Committee*
2. Stakeholders RelationshipCommittee
3. Risk Management Committee*

Indostar Capital Finance
Limited

1. Audit Committee*
2. Stakeholders RelationshipCommittee
3. Corporate Social Responsibility
Committee
4. Nomination and Remuneration
Committee
5. IT Strategy Committee*

Bobby’s particular area of focus is providing tax and regulatory
advice in relation to transactions and other forms of businessreorganizations, whether inbound, outbound or wholly
domestic. In this regard, he works extensively with private equity
funds, other institutional investors and owners and managers
of businesses to develop bespoke solutions that optimallyaddress the commercial objectives underpinning a particulartransaction or a business reorganization. He also works closelywith regulators and policy formulators in providing inputs to
aid in the development of new regulations and policies, and inassessing the implications and efficacy of these and providing
feedback for action.
Bobby was most recently co-founder of BMR Advisors, a highly
regarded tax and transactions firm which he helped establish
and run for over 12 years. Prior to forming BMR Advisors, Bobby
was the Chief Executive Officer of Ernst & Young in India and heldthat responsibility until December 2003. He worked with Arthur
Andersen for over 17 years and was its Country Managing Partner
until the Andersen practice combined with that of Ernst & Youngin June 2002. He led the Financial Services industry practice at
Arthur Andersen and then also at Ernst & Young.
Bobby is a graduate in Commerce from the University of Mumbai
and qualified as a Chartered Accountant from the Indian Instituteof Chartered Accountants of India in 1987.
Age: 59 years
Nature of expertise in specific functional areas: Information
Technology, Leadership, Board service & governance, Financial,
Diversity, Global business, Sales & marketing, Mergers &Acquisitions, Risk management, and Sustainability & ESG
Disclosure of inter-se relationships between
directors and KMP: Nil
Listed entities (other than the Infosys Group) in which
Bobby Parikh holds directorship and committee membership:
As per the LODR Regulations, an independent director may
hold directorships in 7 (seven) listed companies. Bobby holds 3(three) independent directorships, which is significantly lower
Infosys Limited* Chairperson

Listed entities from which Bobby Parikh has resigned in
the past three years:
Name of the company

Date of cessation

Aditya Birla Sunlife AMC Limited

February 2, 2022

Shareholding in the Company as on March 31,
2023: 6,887 equity shares
Remuneration proposed to be paid: Shareholders at the 34th
AGM, held on June 22, 2015, approved a sum not exceeding
1% of the net profit of the Company per annum, calculated inaccordance with the provisions of Section 198 of the Act, to be
paid and distributed among some or all of the non-executive
directors of the Company in a manner decided by the Board.
Independent directors are paid remuneration as per the criteria
set by the Board from time to time in accordance with theshareholders’ approval at the 34th AGM. The detailed criteria
is available in the Nomination and Remuneration Policy of theCompany. The Policy can be accessed from https://www.infosys.
com/investors/corporate-governance/documents/nominationremuneration-policy.pdf.
Key terms and conditions of appointment: As per the
resolution in Item no. 5 of this Notice, read with the
explanatory statement thereto.
Date of first appointment to the Board, last drawn remunerationand number of Board meetings attended: Bobby Parikh wasappointed to the Board as an independent director on July
15, 2020. The details of remuneration drawn and number of
meetings attended are provided in the Corporate governancereport section of the Annual Report 2022-23.
Skills and capabilities required for the role and the manner inwhich Bobby meets such requirements:
As per the resolution at Item no. 5 of this Notice, read with the
explanatory statement thereto.
Notice of the 42nd Annual General Meeting | 11

Instructions for participation through VC
Please follow the below steps for registration and participation
Step 1:

Access the VC portal by clicking this link: https://agm.
onwingspan.com/InfosysAGM or you could also join theAGM by visiting the investor page on our Company’s website,www.infosys.com

Step 2:

Log in to join the VC session by using your DP ID and Client ID/ Folio Number together with your PANa) Members with NSDL account: 8-character DP ID followedby 8-digit Client ID(For example, if your DP ID is IN300*** and Client ID is
12******, then your user ID is IN300***12******).
b) Members with CDSL account: 16-digit Beneficiary ID (Forexample, if your Beneficiary ID is 12**************, then youruser ID is 12**************).
c) Members with physical folio: ITL + Folio Number registeredwith the Company(For example, if your Folio Number is 0*****, then your user ID
is ITL0*****)

System requirements for best VC experience
Internet connection: Broadband, wired or wireless (3G or 4G/LTE),
with a speed of 5 Mbps or more
Microphone and speakers: Built-in or USB plug-in or wirelessBluetooth
Browser:
Google Chrome: Version 90 or latest
Mozilla Firefox: Version 90 or latest
Microsoft Edge Chromium: Version 90 or latest
Safari: Version 12 or latest
Internet Explorer: Not supported
Helpline numbers+91-80- 4156 5555
+91-80- 4156 5777

Note: Institutional / corporate shareholders are required to upload the Board Resolution / Authorization Letter authorizing its
representatives to attend the AGM through VC.
Step 3:

Click ‘Enter’ to join the virtual AGM.

Step 4:

Members can post questions either through chat or the video feature available in the VC. Members can exercise these options once
the floor is open for shareholder queries.

Step 5:

Members who have not cast their vote on the resolutions through remote e-voting and are otherwise not barred from doing so, shallbe eligible to vote through the e-voting system during the AGM by following the ‘Instructions for e-voting’.

General guidelines for VC participationi.

Members may note that the 42nd AGM of the Company will be convened through VC in compliance with the applicable provisions of
the Act, read with the Circulars. The facility to attend the meeting through VC will be provided by the Company. Members may accessthe same at https://agm.onwingspan.com/InfosysAGM.

ii. The facility of joining the AGM through VC will be opened 60 minutes before the scheduled start time of the AGM and will beavailable for members on a first-come-first-served basis.
iii. The Company reserves the right to limit the number of members asking questions depending on the availability of time at the AGM.
iv. Members can participate in the AGM through their desktops / smartphones / laptops etc. However, for better experience and smooth
participation, it is advisable to join the meeting through desktops / laptops with high-speed internet connectivity.
v. Please note that participants connecting from mobile devices or tablets, or through laptops via mobile hotspot may experience
audio / video loss due to fluctuation in their respective networks. It is therefore recommended to use a stable Wi-Fi or LAN
connection to mitigate any of the aforementioned glitches.

12 | Notice of the 42nd Annual General Meeting

Infosys Limited

Instructions for e-voting
The details of the process and manner for remote e-voting and voting during the AGM are explained below:
Step 1: Access to the NSDL e-voting system
Step 2: Cast your vote electronically on NSDL e-voting system.
Step 1: Access to the NSDL e-voting system
A)

Login method for e-voting and voting during the meeting for individual shareholders holding securities in demat mode
In terms of the SEBI circular SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on the e-voting facility provided bylisted companies and as part of increasing the efficiency of the voting process, the e-voting process has been enabled to allindividual shareholders holding securities in demat mode to vote through their demat account maintained with depositories
and depository participants. Shareholders are advised to update their mobile number and email ID in their demat accounts toaccess e-voting facility.

Login method for individual shareholders holding securities in demat mode is given below:
Type of shareholders

Login method

Individual shareholders holding securities indemat mode with NSDL

I. NSDL IDeAS Facility
If you are already registered for the NSDL IDeAS facility,
1. Visit the e-services website of NSDL. Open the web browser by typing the following
URL: https://eservices.nsdl.com/ either on a personal computer or mobile phone.
2. Once the homepage of e-Services is launched, click on the “Beneficial Owner” icon
under “Login”, available under the “IDeAS” section.
3. A new screen will open. You will have to enter your user ID and password. After
successful authentication, you will be able to see e-voting services.
4. Click on “Access to e-voting” under e-voting services and you will be able to see the
e-voting page.
5. Click on options available against company name or e-voting service provider – NSDL
and you will be redirected to the NSDL e-voting website for casting your vote during
the remote e-voting period or voting during the meeting.
If the user is not registered for IDeAS e-Services,
1. The option to register is available at https://eservices.nsdl.com.
2. Select “Register Online for IDeAS” or click on https://eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
3. Upon successful registration, please follow steps given in points 1-5 above.
II. E-voting website of NSDL
1. Visit the e-voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a personal computer or mobile phone.
2. Once the homepage of e-voting system is launched, click on the “Login” icon, available
under the “Shareholder / Member” section.
3. A new screen will open. You will have to enter your User ID (i.e. your 16-digit demat
account number held with NSDL), Password / OTP and a verification code as shown on
the screen.
4. After successful authentication, you will be redirected to the NSDL Depository sitewherein you can see the e-voting page. Click on options available against company
name or e-voting service provider – NSDL and you will be redirected to the e-voting
website of NSDL for casting your vote during the remote e-voting period or voting
during the meeting.
5. Shareholders / members can also download the NSDL mobile app ‘NSDL SPEED-e’ byscanning the QR code mentioned below for seamless voting experience.

Infosys Limited

Notice of the 42nd Annual General Meeting | 13

Individual shareholders holding securities indemat mode with CDSL

1. Users who have opted for the CDSL Easi / Easiest facility can log in using their existinguser id and password. Option will be made available to reach e-voting page without
any further authentication. The users of Easi / Easiest are requested to visit CDSL
website www.cdslindia.com and click on the login icon and New System Myeasi Tab andthen use your existing my easi username and password.
2. Alternatively, the user can directly access the e-voting page by providing demat
account number and PAN from the e-voting link available on www.cdslindia.com home
page. The system will authenticate the user by sending OTP on the registered mobileand email as recorded in the demat account. After successful authentication, the user
will be able to see the e-voting option where the e-voting is in progress and will also beable to directly access the system of all e-voting service providers.
3. After successful login, the Easi / Easiest user will be able to see the e-voting option for
eligible companies where the e-voting is in progress as per the information provided
by the Company. On clicking the e-voting option, the user will be able to see e-voting
page of the e-voting service provider for casting your vote during the remote e-voting
period or joining the virtual meeting and voting during the meeting. Additionally, there
are also links provided to access the system of all e-voting service providers, so that theuser can visit the e-voting service providers’ website directly.
4. If the user is not registered for Easi / Easiest, the option to register is available on the
CDSL website www.cdslindia.com. Click on login and New System Myeasi Tab and thenclick on the registration option.

Individual shareholders (holding securities
in demat mode) logging in through theirdepository participants

1. You can also log in using the login credentials of your demat account through yourdepository participant registered with NSDL / CDSL for the e-voting facility.
2. Once logged in, you will be able to see the e-voting option. Once you click on the
e-voting option, you will be redirected to the NSDL / CDSL depository site after
successful authentication, wherein you can see the e-voting feature.
3. Click on the options available against company name or e-voting service provider-NSDL
and you will be redirected to the e-voting website of NSDL for casting your vote during
the remote e-voting period or voting during the meeting.

Important note: Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” and “Forgot Password”
options available on the above-mentioned website.
Helpdesk for individual shareholders holding securities in demat mode for any technical issues related to login throughdepository i.e. NSDL and CDSL
Login type

Helpdesk details

Individual shareholders holding
securities in demat mode with NSDLMembers facing any technical issue in login can contact NSDL helpdesk by sending a request at
evoting@nsdl.co.in or call 022 - 4886 7000 and 022 - 2499 7000

Individual shareholders holding
securities in demat mode with CDSL

Members facing any technical issue in login can contact CDSL helpdesk by sending a request at
helpdesk.evoting@cdslindia.com or call the toll-free number 1800 22 55 33

B) Login method for e-voting and voting during the meeting for shareholders other than individual shareholders holding
securities in demat mode and shareholders holding securities in physical mode
1. Visit the e-voting website of NSDL. Open the web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a
personal computer or on a mobile phone.
2. Once the homepage of the e-voting system is launched, click on the icon ‘Login’, available under ‘Shareholder / Member’.
3. A new screen will open. Enter your User ID, Password / OTP and a verification code as shown on the screen.
4. Alternatively, if you are registered for NSDL e-services i.e. IDeAS, you can log in at https://eservices.nsdl.com/ with your existing IDeAS
login. Once you log in to NSDL e-services using your login credentials, click on e-voting and you can proceed to Step 2 i.e. Cast yourvote electronically on NSDL e-voting system.
5. Your User ID details are given below:

14 | Notice of the 42nd Annual General Meeting

Infosys Limited

Manner of holding shares i.e. Demat (NSDL
or CDSL) or PhysicalYour User ID is:a) For members who hold shares in demat
account with NSDL

8-character DP ID followed by 8-digit Client ID
For example, if your DP ID is IN300*** and Client ID is 12****** then your User ID is
IN300***12******.

b) For members who hold shares in demat
account with CDSL

16-digit Beneficiary ID For example, if your Beneficiary ID is 12************** then your User ID
is 12**************c) For members holding shares in physicalform

EVEN Number followed by Folio Number registered with the Company For example, if your
Folio Number is 001*** and EVEN is 124041 then your User ID is 124041001***

6. Password details for shareholders other than individual shareholders are given below:
a. If you are already registered for e-voting, then you can use your existing password to log in and cast your vote.
b. If you are using NSDL e-voting system for the first time, you will need to retrieve the ‘initial password’ which was communicatedto you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ for the system to prompt you tochange your password.
c. How to retrieve your ‘initial password’?
If your email ID is registered in your demat account or with the Company, your ‘initial password’ is communicated to you on youremail ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Openthe .pdf file. The password to open the .pdf file is your 8-digit Client ID for your NSDL account, or the last 8 digits of your Client ID
for CDSL account, or Folio Number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.
7. If you are unable to retrieve or have not received the ‘Initial password’ or have forgotten your password:a. Click on ‘Forgot User Details / Password?’ (If you hold shares in your demat account with NSDL or CDSL) option available onwww.evoting.nsdl.com.
b. Physical User Reset Password? (If you hold shares in physical mode) option available on www.evoting.nsdl.com.
c. If you are still unable to get the password by the above two options, you can send a request to evoting@nsdl.co.in mentioning
your demat account number / Folio Number, your PAN, your name and your registered address.
d. Members can also use the OTP (One Time Password) based login for casting their vote on the e-voting system of NSDL.
8. After entering your password, tick on “Agree with Terms and Conditions” by selecting on the check box.
9. Now, you will have to click on the ‘Login’ button.
10. After you click on the ‘Login’ button, the homepage of e-voting will open.
Step 2: Cast your vote electronically on NSDL e-voting system
1. After successfully logging in following Step 1, you will be able to see the EVEN of all companies in which you hold shares and whose
voting cycle is in active status.
2. Select the EVEN of Infosys Limited, which is 124041.
3. Now you are ready for e-voting as the voting page opens.
4. Cast your vote by selecting the appropriate options, i.e. assent or dissent, verify / modify the number of shares for which you wish to
cast your vote and click on the ‘Submit’ and ‘Confirm’ buttons when prompted.
5. Upon confirmation, the message, ‘Vote cast successfully’, will be displayed.
6. You can also take a printout of the votes cast by you by clicking on the ‘Print’ option on the confirmation page.
7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
Process for procuring user ID and password for e-voting for those shareholders whose email IDs are not registered with thedepositories / Company
1. Shareholders may send a request to evoting@nsdl.co.in for procuring user ID and password for e-voting.
2. If shares are held in physical mode, please provide Folio Number, name of member, scanned copy of the share certificate(front and back), PAN (self-attested scanned copy of PAN card), Aadhaar (self-attested scanned copy of Aadhaar Card)
3. In case shares are held in demat mode, please provide DP ID and Client ID (16-digit DP ID + Client ID or 16-digit beneficiary ID), nameof member, client master or copy of consolidated account statement, PAN (self-attested scanned copy of PAN card), Aadhaar (selfattested scanned copy of Aadhaar Card).
4. If you are an individual shareholder holding securities in demat mode, you are requested to refer to the login method explained at
Step 1 (A) i.e. Login method for e-voting and voting during the meeting for individual shareholders holding securities in demat mode.

Infosys Limited

Notice of the 42nd Annual General Meeting | 15

General guidelines for e-voting
1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send a scanned copy (PDF / JPG format) of therelevant Board resolution / authorization letter etc. with attested specimen signature of the duly authorized signatory(ies) who are
authorized to vote, to the Scrutinizer by email to evoting@infosys.com with a copy marked to evoting@nsdl.co.in.
2. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution / Power of Attorney /Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under “e-Voting” tab in their login.
3. It is strongly recommended that you do not share your password with any other person and take utmost care to keep your password
confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In suchan event, you will need to go through the “Forgot User Details / Password?” or “Physical User Reset Password?” option available onwww.evoting.nsdl.com to reset the password.
4. In case of any queries, you may refer to the Frequently Asked Questions (FAQs) for shareholders and the e-voting user manual forshareholders available in the download section of www.evoting.nsdl.com or call the toll-free number: 022 - 4886 7000 and 022 - 2499
7000, or send a request to evoting@nsdl.co.in, or contact Amit Vishal, Assistant Vice President, or Pallavi Mhatre, Senior Manager,
National Securities Depository Ltd., at the designated email IDs: evoting@nsdl.co.in or AmitV@nsdl.co.in or pallavid@nsdl.co.in to getyour grievances on e-voting addressed.

Information at a glance
Particulars

Details

Time and date of AGM

4:00 p.m. IST, Wednesday, June 28, 2023

Mode

Video conference and other audio-visual means

Participation through video-conferencing

https://agm.onwingspan.com/InfosysAGM

Helpline number for VC participation+91-80-4156 5555 / +91-80-4156 5777

Webcast and transcripts

https://www.infosys.com/Investors/

Final dividend record date

Friday, June 2, 2023

Final dividend payment date

Monday, July 3, 2023

Information of tax on final dividend 2022-23

https://www.infosys.com/investors/shareholder-services/dividend-tax.html

Cut-off date for e-voting

Wednesday, June 21, 2023

E-voting start time and date

9:00 a.m. IST, Friday, June 23, 2023

E-voting end time and date

5:00 p.m. IST, Tuesday, June 27, 2023

E-voting website of NSDL

https://www.evoting.nsdl.com/

Name, address and contact details of e-voting service
providerContact name:
Amit Vishal

Assistant Vice President

Pallavi Mhatre
Senior Manager

National Securities Depository Limited,

4th Floor, A Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower
Parel, Mumbai 400013, India

Contact details:
Email ID:
AmitV@nsdl.co.in;
pallavid@nsdl.co.in;
evoting@nsdl.co.in;
Contact number: 022 - 4886 7000 and 022 - 2499 7000
Name, address and contact details of Registrar andTransfer AgentContact name:Shobha Anand

Deputy Vice President

KFin Technologies Limited,

Unit: Infosys Limited, Selenium Tower B, Plot 31-32, Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad-500 032

Contact details:
Email ID:
shobha.anand@kfintech.com;
einward.ris@kfintech.com;
Contact number: 1800-309-4001

16 | Notice of the 42nd Annual General Meeting

Infosys Limited

Safe Harbor
This Annual Report contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking
statements generally relate to future events or our future financial or operating performance and are based on our current expectations,assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate,and certain other matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology
such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘seek’, ‘should’ and similar expressions. Those statements
include, among other things, risks and uncertainties relating to the execution of our business strategy, increased competition for talent,
increase in wages, investments to reskill our employees, hybrid work model, economic uncertainties, technological disruption, complex
and evolving regulatory landscape, including immigration regulation changes, ESG vision, Capital Allocation Policy and expectations
concerning our market position, future operations, margins, profitability, liquidity, capital resources and corporate actions.
These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results or outcomesto differ materially from those implied by the forward-looking statements. Important factors that may cause actual results or outcomesto differ from those implied by the forward-looking statements include, but are not limited to, those discussed in the “Outlook, risks
and concerns” section in this Annual Report, and are discussed in detail in our Form 20-F filed with the U.S. Securities and Exchange
Commission. In the light of these and other uncertainties, you should not conclude that the results or outcomes referred to in any of theforward-looking statements will be achieved. All forward-looking statements included in this Annual Report are based on informationand estimates available to us on the date hereof, and we do not undertake any obligation to update these forward-looking statements
unless required to do so by law.

Creative concept and design by Communication Design Group, Infosys Limited.
© 2023 Infosys Limited, Bengaluru, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in this report.

Infosys Integrated Annual Report 2022-23

www.infosys.com