# EDGAR Filing Document

**Accession Number:** 0001067491
**File Stem:** 0001067491-23-000006
**Filing Date:** 2023-1
**Character Count:** 1000938
**Document Hash:** 7b78a32dbc9b1fdbc3f70fb146669202
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001067491-23-000006.hdr.sgml**: 20230118

**ACCESSION NUMBER**: 0001067491-23-000006

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 20

**CONFORMED PERIOD OF REPORT**: 20230118

**FILED AS OF DATE**: 20230118

**DATE AS OF CHANGE**: 20230118

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Infosys Ltd
- **CENTRAL INDEX KEY:** 0001067491
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
- **IRS NUMBER:** 581760235
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35754
- **FILM NUMBER:** 23532936

**BUSINESS ADDRESS:**
- **STREET 1:** ELECTRONICS CITY HOSUR RD
- **STREET 2:** BANGALORE KARNATAKA INDIA
- **CITY:** BANGALORE
- **STATE:** K7
- **ZIP:** 560 100
- **BUSINESS PHONE:** 0119180852

**MAIL ADDRESS:**
- **STREET 1:** ELECTRONIC CITY HOSUR RD
- **STREET 2:** BANGALORE KARNATAKA INDIA
- **CITY:** BANGALORE
- **STATE:** K7
- **ZIP:** 560 100

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INFOSYS TECHNOLOGIES LTD
- **DATE OF NAME CHANGE:** 19980804

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

**Report of Foreign Private Issuer**

**Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934**

**For the quarter ended December 31, 2022**

**Commission File Number 001-35754**

**Infosys Limited**

*(Exact name of Registrant as specified in its charter)*

**Not Applicable**

*(Translation of Registrant's name into English)*

**Electronics City, Hosur Road, Bangalore - 560 100, Karnataka, India. +91-80-2852-0261**

*(Address of principal executive offices)*

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F 🗹 Form 40-F □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) : □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) : □

**TABLE OF CONTENTS**

---

| |
|:---|
| [DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION](#a_001) |
| [SIGNATURES](#a_002) |
| [INDEX TO EXHIBITS](#a_003) |
| [EXHIBIT 99.1](exv99w01.htm) |
| [EXHIBIT 99.2](exv99w02.htm) |
| [EXHIBIT 99.3](exv99w03.htm) |
| [EXHIBIT 99.4](exv99w04.htm) |
| [EXHIBIT 99.5](exv99w05.htm) |
| [EXHIBIT 99.6](exv99w06.htm) |
| [EXHIBIT 99.7](exv99w07.htm) |
| [EXHIBIT 99.8](exv99w08.htm) |
| [EXHIBIT 99.9](exv99w09.htm) |
| [EXHIBIT 99.10](exv99w10.htm) |

---

**DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

Infosys Limited ("Infosys" or "the Company" or "we") hereby furnishes the United States Securities and Exchange Commission with copies of the following information concerning our public disclosures regarding our results of operations and financial condition for the quarter and nine months ended December 31, 2022.

The following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On January 12, 2023, we announced our results of operations for the quarter and nine months ended December 31, 2022. We issued press releases announcing our results under International Financial Reporting Standards ("IFRS") in U.S. dollars and Indian rupees, copies of which are attached to this Form 6-K as Exhibits 99.1 and 99.2, respectively.

On January 12, 2023, we held a press conference to announce our results, which was followed by a question and answer session. The transcript of this press conference is attached to this Form 6-K as Exhibit 99.3.

We have also made available to the public on our website, www.infosys.com, a fact sheet that provides details on our profit and loss account summary for the quarter and nine months ended December 31, 2022 and 2021 (as per IFRS); revenue by client geography offering, business segment, revenue by offering; information regarding our client concentration; employee information and metrics; and consolidated IT services information. We have attached this fact sheet to this Form 6-K as Exhibit 99.4.

On January 12, 2023, we also held a teleconference with investors and analysts to discuss our results. The transcripts of the teleconference are attached to this Form 6-K as Exhibit 99.5.

We placed form of releases to stock exchanges and advertisements in certain Indian newspapers concerning our results of operations for the quarter ended December 31, 2022, under Ind AS. A copy of the release to the stock exchanges and the advertisement is attached to this Form 6-K as Exhibit 99.6.

We have made available to the public on our website, www.infosys.com, the following: Audited Interim Condensed Financial Statements in compliance with IFRS in US dollars and the Auditors Report; Audited Interim Condensed Financial Statements in compliance with IFRS in Indian Rupees and the Auditors Report; Audited Interim Ind AS Condensed Standalone Financial Statements and the Auditors Report; Audited Interim Ind AS Condensed Consolidated Financial Statements and the Auditors Report for the quarter December 31, 2022. We have attached these documents to this Form 6-K as Exhibits 99.7, 99.8, 99.9 and 99.10, respectively.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized

---

| | |
|:---|:---|
|  | Infosys Limited<br> /s/ Inderpreet Sawhney |
| Date: January 18, 2023 | Inderpreet Sawhney<br> General Counsel and Chief Compliance Officer |

---

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Document** |
| 99.1 | IFRS USD press release |
| 99.2 | IFRS INR press release |
| 99.3 | Transcript of January 12, 2023 press conference |
| 99.4 | Fact Sheet regarding Registrant's Statement of Profit and Loss for the quarters ended December 31, 2022 and 2021 (as per IFRS); revenue by Business Segment, revenue by Offering, Client Geography, information regarding Client Concentration; Employee Information and Metrics and Consolidated IT Services Information and cash flow information |
| 99.5 | Transcript of January 12, 2023 earnings call |
| 99.6 | Form of release to stock exchanges and advertisement placed in Indian newspapers |
| 99.7 | Audited Interim Condensed Consolidated Financial Statements of Infosys Limited and its Subsidiaries in compliance with International Financial Reporting Standards (IFRS) in US Dollars and the Auditors Report thereon |
| 99.8 | Audited Interim Consolidated Financial Statements of Infosys Limited and its Subsidiaries in compliance with IFRS in Indian Rupees and the Auditors Report thereon |
| 99.9 | Audited Interim Condensed Financial Statements of Infosys Limited for the quarter ended December 31, 2022 in compliance with Indian Accounting Standards (INDAS) and Auditors Report thereon. |
| 99.10 | Audited Interim Condensed Consolidated Financial Statements of Infosys Limited and its subsidiaries in compliance with INDAS for the quarter ended December 31, 2022 and Auditors Report there on and the Auditors Report thereon |

---

## Exhibit 99.1

**Exhibit 99.1**<br> **IFRS USD Press Release**

**Strong growth of 13.7% in constant currency in a seasonally weak quarter**

**Strongest large deal wins in the last 8 quarters at $3.3 billion**

**Revenue guidance for FY23 revised to 16.0%-16.5%**

**Bengaluru, India – January 12, 2023:** Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, reported strong Q3 performance with year-on-year growth at 13.7% and sequential growth at 2.4% in constant currency. Year on year growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion. Digital comprised 62.9% of overall revenues and grew at 21.7% in constant currency. Operating margin for the quarter remained resilient at 21.5%. FY23 revenue guidance revised to 16.0%-16.5%. FY23 operating margin guidance retained at 21%-22%.

"Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees", said Salil Parekh, CEO and MD. "As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness", he added.

![growth percentage](growth-percentage.gif)

**1.** **Key highlights:** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**For the quarter ended December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;**For nine months ended December 31, 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;· Revenues in CC terms grew by 13.7% YoY and 2.4% QoQ<br>&nbsp;&nbsp;&nbsp;&nbsp;· Reported revenues at $4,659 million, growth of 9.6% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· Digital revenues at 62.9% of total revenues, YoY CC growth of 21.7%<br>&nbsp;&nbsp;&nbsp;&nbsp;· Operating margin at 21.5%, decline of 2.0% YoY and stable QoQ<br>&nbsp;&nbsp;&nbsp;&nbsp;· Basic EPS at $0.19, growth of 3.3% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· FCF at $576 million, decline of 19.9% YoY;<br> FCF conversion at 72.0% of net profit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;· Revenues in CC terms grew by 17.8% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· Reported revenues at $13,657 million, growth of 13.5% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· Digital revenues at 61.9% of total revenues, YoY CC growth of 29.5%<br>&nbsp;&nbsp;&nbsp;&nbsp;· Operating margin at 21.0%, decline of 2.6% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· Basic EPS at $0.53, growth of 1.7% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;· FCF at $1,821 million, decline of 20.6% YoY; FCF conversion at 81.4% of net profit |

---

"Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters", said **Nilanjan Roy, Chief Financial Officer.** "Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term", he added.

**2.** **Capital Allocation** 

Pursuant to the Board recommendation and subsequent to shareholders' approval through postal ballot, the company has started share buyback program through open market route from December 7, 2022 and till date, has bought back 31.3 million shares worth ![](rupee-symbol.gif)4,790 crore (app. $0.6 billion\*) or 51.5% of total authorization of ![](rupee-symbol.gif)9,300 crore at an average price of approx. ![](rupee-symbol.gif)1,531 per share (compared to maximum Buyback Price of ![](rupee-symbol.gif)1,850 per share).

***\*USD-INR rate of 82.00***

**3.** **Client wins & Testimonials** 

&nbsp;&nbsp;&nbsp;&nbsp;• Centric Brands has selected Infosys
to be a strategic technology partner to provide a range of digital, IT, business operations and transformation services. Infosys will
leverage its cognitive first IT framework along with its industry leading digital, cognitive AI, cloud and retail industry solution accelerators
to improve and transform the technology landscape **. Anurup Pruthi, Global CFO, Centric Brands**, said, "By partnering with Infosys,
we will be able to standardize our internal processes, bring in the best practices and tools, and strengthen the skills needed for continued
success in the Retail B2B marketplace."

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys
helped develop a cloud-based platform to digitize and automate manual processes at Envision AESC, a world-leading battery technology company's
Electric Vehicle (EV) battery manufacturing plants. "At Envision AESC, we believe that advancements in battery technology will propel
the EV revolution to newer heights. The manufacturing processes of our breakthrough batteries need a robust digital foundation to accelerate
the speed and scale of innovation. We are confident that Infosys, with their trusted cloud technologies and deep expertise in the automotive
industry, will help us continue on our journey towards achieving our transformation goals," said, **Brian Sullivan, Executive Vice President of Global Manufacturing and Supply Chain at Envision AESC**.

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys and Microsoft modernized Spark New Zealand's corporate
functions to enhance business resilience, operational simplicity, workplace agility, and customer experience. **Mark Beder, Chief Operating Officer, Spark**, said, "As we embarked on a journey to revamp our business operations and step out of our legacy systems, we
were looking for partners that understand and provide strength to our vision for an ERP-driven business transformation. It has been great
working with Infosys and Microsoft as our transformation partners. The level of ERP implementation expertise and scale they bring to the
table in this endeavor underpinned by best-fit digital solutions and resources is helping us to unshackle legacy system constraints and
will help us improve operational simplicity, workplace agility and customer experience."

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys collaborated with CIRCOR, one of the world's leading
providers of mission critical flow control products and services for the Industrial, Aerospace & Defense markets, to help transform
its IT landscape and modernize its IT infrastructure. **Pete Sattler, Chief Information Officer, CIRCOR**, said, "The goal of
our alliance with Infosys is to offer all our customers – both internal and external – faster and more reliable service, enhance
our cybersecurity, and provide 24x7 monitoring for our global IT environment."

&nbsp;&nbsp;&nbsp;&nbsp;• Avon, part of Natura Group, entered a five-year strategic collaboration
with Infosys to advance its digital transformation journey, implement cognitive operations, drive continuous innovation, and help in better
serving its customers. **Karen McElhatton, CIO, Avon**, said, "Through this collaboration, Infosys will accelerate the realization
of our Digital vision, through a well-planned transformation roadmap to reduce opex spends, increase resilience and reliability of our
application landscape, and prepare us better for new digital capabilities. We are confident that Infosys, with its sound expertise in
Infrastructure Management Services, Cybersecurity, and Application Services, will enable us to continue to provide cutting-edge services
to our members and customers."

&nbsp;&nbsp;&nbsp;&nbsp;• Conagra has entered into a five-year strategic partnership with
Infosys to innovate its IT operations. Conagra and Infosys will be implementing product based cognitive-first delivery model, with focus
on improving operational excellence, drive continuous innovation, and most importantly improve the quality of service for Conagra's
customers. **Andy Xydakis, CTO, Conagra**, said, "We wanted to change the way we run our IT operations. Delivering in true agile
fashion where teams focus on value delivery. Our partnership with Infosys will help achieve the vision, given their deep Industry knowledge
and ability to align this new way of working to support our overarching business strategy. Through this collaboration, Infosys will help
accelerate the adoption of our product based continuous delivery operating model, by creating capacity to deliver features, increase resiliency
and reliability of our infrastructure and application landscape, thereby helping Conagra advance new digital capabilities."

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Recognitions** 

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

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as the Champion of Inclusion in the Most Inclusive
Companies Index (MICI) and featured in the "100 Best – Hall of Fame" by Avtar & Seramount, 2022

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys secured a place in CDP's annual 'A List'
for its leadership in corporate transparency and performance on climate change

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys rated as "Most Noteworthy" Company by DiversityInc,
USA

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a constituent of the Dow Jones Sustainability
World Index for 2022

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys InStep Ranked as the 'Best Internship Program'
in the 2023 Vault Internship Rankings

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

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys, along with client Lanxess recognized as a winner in the
"Workplace of the Future" category in 2022 ISG Paragon Awards™ EMEA

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in Gartner Magic Quadrant for IT
Services for Communications Service Providers, Worldwide

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in Forrester Wave™: Cloud Migration
and Managed Service Partners in Asia Pacific, Q4 2022

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in IDC MarketScape: Asia/Pacific
Salesforce Implementation Services 2022 Vendor Assessment

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in Software Product Engineering Services
PEAK Matrix® Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in System Integration (SI) Capabilities
on Google Cloud Platform (GCP) PEAK Matrix® Assessment 2022 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in HFS Horizons: Cloud Native Transformation,
2022

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys ranked as a leader in Next-Gen ADM Services 2022 ISG Provider
lens™ study in US

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in IDC Worldwide Manufacturing Service
Life-Cycle Management Strategic Consulting 2022

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in Workplace Communication and Collaboration
(WCC) Services PEAK Matrix® Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in IDC MarketScape: EMEA Industrial
Internet of Things Service Providers for Oil and Gas Companies 2022 Vendor Assessment

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in Application and Digital Services
(ADS) in Property & Casualty (P&C) Insurance PEAK Matrix® Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys recognized as a leader in Risk & Compliance in BFS IT
Services PEAK Matrix® Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in Avasant's Utilities Digital
Services 2022–2023 RadarView<sup>TM</sup>

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys positioned as a leader in Avasant's Manufacturing
Digital Services 2022–2023 RadarView<sup>TM</sup>

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys Finacle positioned as a Leader in The Everest Group PEAK
Matrix® for Wealth Management Products Provider 2023 report

&nbsp;&nbsp;&nbsp;&nbsp;• Infosys BPM ranked as Leader and Star Performer in Everest Group's
Finance and Accounting Outsourcing (FAO) PEAK Matrix® Assessment 2022

**About Infosys**
**Safe Harbor**

This Release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that 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 'may', 'anticipate', 'believe', 'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could', 'would', 'should' and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2022. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

**Contact**

Investor Relations Sandeep Mahindroo <br>+91 80 3980 1018 <br>Sandeep_Mahindroo@infosys.com <br> <u>Media Relations</u> <u>Rishi Basu <br>+91 80 4156 3998 <br>Rajarshi.Basu@infosys.com</u> <u>Mary-Ellen Harn +1 704 359 7996 maryellen.harn@infosys.com</u>

**Infosys Limited and subsidiaries** 

**Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:**

(Dollars in millions)

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **March 31, 2022** |
| **ASSETS** | | |
| **Current assets** | | |
| Cash and cash equivalents | 1401 | 2305 |
| Current investments | 1055 | 880 |
| Trade receivables | 3343 | 2995 |
| Unbilled revenue | 1588 | 1526 |
| Other Current assets | 1366 | 1159 |
| **Total current assets** | **8753** | **8865** |
| **Non-current assets** |  |  |
| Property, plant and equipment and Right-of-use assets | 2405 | 2429 |
| Goodwill and other Intangible assets | 1098 | 1042 |
| Non-current investments | 1497 | 1801 |
| Unbilled revenue | 206 | 124 |
| Other non-current assets | 1267 | 1294 |
| **Total non-current assets** | **6473** | **6690** |
| **Total assets** | **15226** | **15555** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Trade payables | 579 | 545 |
| Unearned revenue | 861 | 834 |
| Employee benefit obligations | 290 | 288 |
| Other current liabilities and provisions | 3251 | 2766 |
| **Total current liabilities** | **4981** | **4433** |
| **Non-current liabilities** |  |  |
| Lease liabilities | 795 | 607 |
| Other non-current liabilities | 424 | 521 |
| **Total non-current liabilities** | **1219** | **1128** |
| **Total liabilities** | **6200** | **5561** |
| **Total equity attributable to equity holders of the company** | **8975** | **9941** |
| Non-controlling interests | 51 | 53 |
| **Total equity** | **9026** | **9994** |
| **Total liabilities and equity** | **15226** | **15555** |

---

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

(Dollars in millions except per equity share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **3 months ended December 31, 2022** | **3 months ended December 31, 2021** | **9 months ended December 31, 2022** | **9 months ended December 31, 2021** |
| **Revenues** | **4659** | **4250** | **13657** | **12031** |
| Cost of sales | 3230 | 2856 | 9544 | 8041 |
| **Gross profit** | **1429** | **1394** | **4113** | **3990** |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling and marketing expenses | 196 | 177 | 574 | 513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative expenses | 232 | 219 | 671 | 642 |
| Total operating expenses | 428 | 396 | 1245 | 1155 |
| **Operating profit** | **1001** | **998** | **2868** | **2835** |
| **Other income, net <sup>(3)</sup>** | 84 | 61 | 229 | 203 |
| **Profit before income taxes** | **1085** | **1059** | **3097** | **3038** |
| Income tax expense | 285 | 283 | 859 | 823 |
| **Net profit (before minority interest)** | **800** | **776** | **2238** | **2215** |
| **Net profit (after minority interest)** | 800 | 774 | 2237 | 2211 |
| **Basic EPS ($)** | 0.19 | 0.18 | 0.53 | 0.52 |
| **Diluted EPS ($)** | 0.19 | 0.18 | 0.53 | 0.52 |

---

**<u>NOTES</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The above information is extracted from the audited condensed consolidated
Balance sheet and Statement of Comprehensive Income for the quarter and nine months ended December 31, 2022, which have been taken on
record at the Board meeting held on January 12, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;2. A Fact Sheet providing the operating metrics of the Company
can be downloaded from www.infosys.com .

&nbsp;&nbsp;&nbsp;&nbsp;3. Other income is net of Finance Cost.

&nbsp;&nbsp;&nbsp;&nbsp;4. The quarter figures added up to the figures reported in previous quarters
might not always add up to the nine months ended figures reported in this statement as all figures are taken from the source and rounded
off to the nearest digits.

## Exhibit 99.2

**Exhibit 99.2**

**IFRS-IND Press Release**

**Strong growth of 13.7% in constant currency in a seasonally weak quarter**

**Strongest large deal wins in the last 8 quarters at $3.3 billion**

**Revenue guidance for FY23 revised to 16.0%-16.5%**

**Bengaluru, India – January 12, 2023**: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, reported strong Q3 performance with year-on-year growth at 13.7% and sequential growth at 2.4% in constant currency. Year on year growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion. Digital comprised 62.9% of overall revenues and grew at 21.7% in constant currency. Operating margin for the quarter remained resilient at 21.5%. FY23 revenue guidance revised to 16.0%-16.5%. FY23 operating margin guidance retained at 21%-22%.

Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees", said **Salil Parekh, CEO and MD**. "As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness", he added.

![growth percentage](growth-percentage.gif)

**1. Key highlights:**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**For the quarter ended December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;**For nine months ended December 31, 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues in CC terms grew by 13.7% YoY and 2.4% QoQ<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reported revenues at ![](rupee-symbol.gif)38,318 crore, growth of 20.2% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Digital revenues at 62.9% of total revenues, YoY CC growth of 21.7%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Operating margin at 21.5%, decline of 2.0% YoY and stable QoQ<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Basic EPS at ![](rupee-symbol.gif)15.72, growth of 13.4% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· FCF at ![](rupee-symbol.gif)4,741 crore, decline of 12.2% YoY; FCF conversion at 72.0% of net profit<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues in CC terms grew by 17.8% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reported revenues at ![](rupee-symbol.gif)109,326 crore, growth of 22.3% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Digital revenues at 61.9% of total revenues, YoY CC growth of 29.5%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Operating margin at 21.1%, decline of 2.5% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Basic EPS at ![](rupee-symbol.gif)42.85, growth of 10.0% YoY<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· FCF at ![](rupee-symbol.gif)14,599 crore, decline of 14.3% YoY; FCF conversion at 81.2% of net profit<br>|

---

"Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters", said **Nilanjan Roy, Chief Financial Officer**. "Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term", he added.

**2. Capital Allocation**

Pursuant to the Board recommendation and subsequent to shareholders' approval through postal ballot, the company has started share buyback program through open market route from December 7, 2022 and till date, has bought back 31.3 million shares worth ![](rupee-symbol.gif)4,790 crore or 51.5% of total authorization of ![](rupee-symbol.gif)9,300 crore at an average price of approx. ![](rupee-symbol.gif)1,531 per share (compared to maximum Buyback Price of ![](rupee-symbol.gif)1,850 per share).

**3. Client wins & Testimonials**

&nbsp;&nbsp;&nbsp;&nbsp;· Centric Brands has selected Infosys to be a strategic technology partner to provide a range of digital, IT,
business operations and transformation services. Infosys will leverage its cognitive first IT framework along with its industry leading
digital, cognitive AI, cloud and retail industry solution accelerators to improve and transform the technology landscape. **Anurup Pruthi, Global CFO**, **Centric Brands**, said, "By partnering with Infosys, we will be able to standardize our internal processes,
bring in the best practices and tools, and strengthen the skills needed for continued success in the Retail B2B marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys helped develop a cloud-based platform to digitize and automate manual processes at Envision AESC,
a world-leading battery technology company's Electric Vehicle (EV) battery manufacturing plants. "At Envision AESC, we believe
that advancements in battery technology will propel the EV revolution to newer heights. The manufacturing processes of our breakthrough
batteries need a robust digital foundation to accelerate the speed and scale of innovation. We are confident that Infosys, with their
trusted cloud technologies and deep expertise in the automotive industry, will help us continue on our journey towards achieving our transformation
goals," said, **Brian Sullivan, Executive Vice President of Global Manufacturing and Supply Chain at Envision AESC**.

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys and Microsoft modernized Spark New Zealand's corporate functions to enhance business resilience,
operational simplicity, workplace agility, and customer experience. **Mark Beder, Chief Operating Officer, Spark**, said, "As
we embarked on a journey to revamp our business operations and step out of our legacy systems, we were looking for partners that understand
and provide strength to our vision for an ERP-driven business transformation. It has been great working with Infosys and Microsoft as
our transformation partners. The level of ERP implementation expertise and scale they bring to the table in this endeavor underpinned
by best-fit digital solutions and resources is helping us to unshackle legacy system constraints and will help us improve operational
simplicity, workplace agility and customer experience.

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys collaborated with CIRCOR, one of the world's leading providers of mission critical flow control
products and services for the Industrial, Aerospace & Defense markets, to help transform its IT landscape and modernize its IT infrastructure. **Pete Sattler, Chief Information Officer, CIRCOR**, said, "The goal of our alliance with Infosys is to offer all our customers
– both internal and external – faster and more reliable service, enhance our cybersecurity, and provide 24x7 monitoring for
our global IT environment.

&nbsp;&nbsp;&nbsp;&nbsp;· Avon, part of Natura Group, entered a five-year strategic collaboration with Infosys to advance its digital
transformation journey, implement cognitive operations, drive continuous innovation, and help in better serving its customers. **Karen McElhatton, CIO, Avon**, said, "Through this collaboration, Infosys will accelerate the realization of our Digital vision, through
a well-planned transformation roadmap to reduce opex spends, increase resilience and reliability of our application landscape, and prepare
us better for new digital capabilities. We are confident that Infosys, with its sound expertise in Infrastructure Management Services,
Cybersecurity, and Application Services, will enable us to continue to provide cutting-edge services to our members and customers.

&nbsp;&nbsp;&nbsp;&nbsp;· Conagra has entered into a five-year strategic partnership with Infosys to innovate its IT operations. Conagra
and Infosys will be implementing product based cognitive-first delivery model, with focus on improving operational excellence, drive continuous
innovation, and most importantly improve the quality of service for Conagra's customers. **Andy Xydakis, CTO, Conagra**, said,
"We wanted to change the way we run our IT operations. Delivering in true agile fashion where teams focus on value delivery. Our
partnership with Infosys will help achieve the vision, given their deep Industry knowledge and ability to align this new way of working
to support our overarching business strategy. Through this collaboration, Infosys will help accelerate the adoption of our product based
continuous delivery operating model, by creating capacity to deliver features, increase resiliency and reliability of our infrastructure
and application landscape, thereby helping Conagra advance new digital capabilities."

**4. Recognitions**

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

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as the Champion of Inclusion in the Most Inclusive Companies Index (MICI) and featured
in the "100 Best – Hall of Fame" by Avtar & Seramount, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys secured a place in CDP's annual 'A List' for its leadership in corporate transparency
and performance on climate change

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys rated as "Most Noteworthy" Company by DiversityInc, USA

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a constituent of the Dow Jones Sustainability World Index for 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys InStep Ranked as the 'Best Internship Program' in the 2023 Vault Internship Rankings

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

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys, along with client Lanxess recognized as a winner in the "Workplace of the Future" category
in 2022 ISG Paragon Awards™ EMEA

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in Gartner Magic Quadrant for IT Services for Communications Service Providers,
Worldwide

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in Forrester Wave™: Cloud Migration and Managed Service Partners in
Asia Pacific, Q4 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in IDC MarketScape: Asia/Pacific Salesforce Implementation Services 2022 Vendor
Assessment

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in Software Product Engineering Services PEAK Matrix® Assessment 2023
by Everest

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in System Integration (SI) Capabilities on Google Cloud Platform (GCP) PEAK
Matrix® Assessment 2022 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in HFS Horizons: Cloud Native Transformation, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys ranked as a leader in Next-Gen ADM Services 2022 ISG Provider lens™ study in US

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in IDC Worldwide Manufacturing Service Life-Cycle Management Strategic Consulting
2022

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in Workplace Communication and Collaboration (WCC) Services PEAK Matrix®
Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in IDC MarketScape: EMEA Industrial Internet of Things Service Providers for
Oil and Gas Companies 2022 Vendor Assessment

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in Application and Digital Services (ADS) in Property & Casualty (P&C)
Insurance PEAK Matrix® Assessment 2023 by Everest

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys recognized as a leader in Risk & Compliance in BFS IT Services PEAK Matrix® Assessment 2023
by Everest

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in Avasant's Utilities Digital Services 2022–2023 RadarViewTM

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys positioned as a leader in Avasant's Manufacturing Digital Services 2022–2023 RadarViewTM

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys Finacle positioned as a Leader in The Everest Group PEAK Matrix® for Wealth Management Products
Provider 2023 report

&nbsp;&nbsp;&nbsp;&nbsp;· Infosys BPM ranked as Leader and Star Performer in Everest Group's Finance and Accounting Outsourcing
(FAO) PEAK Matrix® Assessment 2022

**About Infosys**

**Safe Harbor**

This Release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that 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 'may', 'anticipate', 'believe', 'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could', 'would', 'should' and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2022. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

**Contact**

Investor Relations Sandeep Mahindroo +91 80 3980 1018 Sandeep_Mahindroo@infosys.com <br> <u>Media Relations</u> <u> Rishi Basu +91 80 4156 3998 Rajarshi.Basu@infosys.com</u> <u> Mary-Ellen Harn +1 704 359 7996 maryellen.harn@infosys.com</u>

**Infosys Limited and subsidiaries**

**Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
|  **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **ASSETS** | | |
| **Current assets** | | |
| Cash and cash equivalents | 11587 | 17472 |
| Current investments | 8730 | 6673 |
| Trade receivables | 27660 | 22698 |
| Unbilled revenue | 13139 | 11568 |
| Other Current assets | 11300 | 8774 |
| **Total current assets** | **72416** | **67185** |
| **Non-current assets** |  |  |
| Property, plant and equipment and Right-of-use assets | 19897 | 18402 |
| Goodwill and other Intangible assets | 9083 | 7902 |
| Non-current investments | 12386 | 13651 |
| Unbilled revenue | 1708 | 941 |
| Other non-current assets | 10476 | 9804 |
| **Total non-current assets** | **53550** | **50700** |
| **Total assets** | **125966** | **117885** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Trade payables | 4788 | 4134 |
| Unearned revenue | 7117 | 6324 |
| Employee benefit obligations | 2400 | 2182 |
| Other current liabilities and provisions | 26900 | 20963 |
| **Total current liabilities** | **41205** | **33603** |
| **Non-current liabilities** |  |  |
| Lease liabilities | 6577 | 4602 |
| Other non-current liabilities | 3511 | 3944 |
| **Total non-current liabilities** | **10088** | **8546** |
| **Total liabilities** | **51293** | **42149** |
| **Total equity attributable to equity holders of the company** | **74292** | **75350** |
| Non-controlling interests | 381 | 386 |
| **Total equity** | **74673** | **75736** |
| **Total liabilities and equity** | **125966** | **117885** |

---

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

*(In ![](rupee-symbol.gif) crore except per equity share data)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **3 months ended December 31, 2022** | **3 months ended December 31, 2021** | **9 months ended December 31, 2022** | **9 months ended December 31, 2021** |
| **Revenues** | **38318** | **31867** | **109326** | **89365** |
| Cost of sales | 26561 | 21415 | 76342 | 59726 |
| **Gross profit** | **11757** | **10452** | **32984** | **29639** |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | 1611 | 1325 | 4591 | 3809 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses | 1904 | 1643 | 5365 | 4771 |
| Total operating expenses | 3515 | 2968 | 9956 | 8580 |
| **Operating profit** | **8242** | **7484** | **23028** | **21059** |
| **Other income, net <sup>(3)</sup>** | 689 | 459 | 1828 | 1508 |
| **Profit before income taxes** | **8931** | **7943** | **24856** | **22567** |
| Income tax expense | 2345 | 2121 | 6882 | 6116 |
| **Net profit (before minority interest)** | **6586** | **5822** | **17974** | **16451** |
| **Net profit (after minority interest)** | 6586 | 5809 | 17967 | 16425 |
| **Basic EPS (![](rupee-symbol.gif))** | 15.72 | 13.86 | 42.85 | 38.96 |
| **Diluted EPS (![](rupee-symbol.gif))** | 15.70 | 13.83 | 42.79 | 38.88 |

---

**NOTES:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The above information is extracted from the audited condensed consolidated Balance sheet
and Statement of Comprehensive Income for the quarter and nine months ended December 31, 2022, which have been taken on record at the
Board meeting held on January 12, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.

&nbsp;&nbsp;&nbsp;&nbsp;3. Other income is net of Finance Cost.

&nbsp;&nbsp;&nbsp;&nbsp;4. The quarter figures added up to the figures reported in previous quarters might not always
add up to the nine months ended figures reported in this statement as all figures are taken from the source and rounded off to the nearest
digits.

## Exhibit 99.3

**Exhibit 99.3**<br> **Press Conference**

**"Infosys Limited**

**Q3 FY23 Media Conference Call"** 

**January 12, 2023**

**CORPORATE PARTICIPANTS:**

**Salil Parekh**

Chief Executive Officer and Managing Director

**Nilanjan Roy**

Chief Financial Officer

**Rishi Basu (Emcee)**

Corporate Communications

**journalists**

**Ritu Singh** 

CNBC TV 18

**Anisha Jain** 

ET Now

**Sajeet Manghat** 

BQ Prime

**Kushal Gupta**

Zee Business

**Harshada Sawant**

CNBC Awaaz

**Nandan Mandayam**

Reuters

**Uma Kannan** 

The New Indian Express

**Haripriya Suresh** 

Moneycontrol

**Veena Mani** 

The Times of India

**Sai Ishwar**

The Economic Times

**Ayushman Baruah**

The Financial Express

**Haripriya Sureban**

The Hindu BusinessLine

**Jochelle Mendonca**

ET Prime

**Shouvik Das**

Mint

**Shivani Shinde**

Business Standard

**Reshab Shaw**

Informist

**Debasis Mohapatra**

Deccan Herald

**Rohit Chintapali**

Businessworld

**Harichandan Arakali**

Forbes

**Rishi Basu**

A very good evening, everyone, and a very happy New Year. Thank you for joining Infosys' Third Quarter Financial Results. My name is Rishi, and on behalf of Infosys, I'd like to welcome all of you. Over the next hour with our management, we are going to have our financial results commentary. We request one question from each media house so that we can accommodate everyone over the next hour. As always, we will start with broadcast media and then move on to our other friends from media who are present here. With that, let me invite our Chief Executive Officer, Mr. Salil Parekh, for his opening remarks. Over to you, Salil.

**Salil Parekh**

Thanks, Rishi. Good afternoon, and welcome to everyone who is here on the campus and everyone who is joining us online. We are delighted to share with you that our Q3 performance was strong, with year-on-year growth of 13.7%, quarter-on-quarter growth of 2.4% – this in a seasonally weak quarter for us and amid a changing global economy.

We continue to take market share. We continue to benefit from consolidation. Growth in Q3 was broad-based, with most industries and geographies growing in double digits in constant currency. Our large-deal value was at $3.3 bn, the highest in eight quarters. With 32 large deals, this is the largest number of large deals in a quarter in our history, 36% of this is net new. Our pipeline of large deals remains strong.

Our digital revenues grew at 22% in the quarter at constant currency and are now close to 63% of our overall revenue. Our core services revenue grew as well at 2.4%.

We are seeing growth in both areas of our business – digital and core services. This is a testament to our industry-leading digital capabilities, including our Cobalt cloud capability and our industry-leading automation capabilities, both of which are resonating with our clients.

Our large-deals pipeline is seeing increased traction for automation and cost-efficiency programs. Strong growth was accompanied by stable operating margins at 21.5%. This was driven by healthy revenue growth and cost optimization benefits. Our voluntary quarterly annualized attrition continues to decline. It was reduced by 6 percentage points sequentially to well below 20% for this quarter.

While we are encouraged by the immense confidence and trust our clients have in us, the signs around are showing a slowing global economy. Some areas such as mortgages and investment banking in the Financial Services industry, Telco, Hi-Tech, and Retail are more impacted, and that is leading to delays in decision-making and uncertainty in spending in these areas. We are confident that the strength of our digital and cloud capabilities and our automation capabilities will continue to position us well in this market. We are keeping a close watch on the global economy.

Our operating model and offerings are agile to deliver value for our clients in this evolving macro environment. Driven by a growth of 17.8% in constant currency for the first nine months of FY'23 and the strong large-deal value for Q3, we are increasing our revenue growth guidance, which was at 15% to 16%, we are increasing it to 16% to 16.5% for the full financial year, despite the changing global conditions. We are retaining our operating margin guidance for FY '23 at 21% to 22%. We anticipate to be at the lower end of this range. Thank you.

With that, Rishi, let's open up for questions.

**Rishi Basu**

Thank you, Salil. We will open the floor for questions. Joining Salil is Mr. Nilanjan Roy, Chief Financial Officer, Infosys.

With that, we have the first question from Ritu Singh from CNBC TV18.

**Ritu Singh**

Hi, thank you, you said you have increased your revenue growth guidance despite changing global conditions. What gave you this confidence? Why the revision up? What about furloughs, were they lower than what you were expecting from your comments in the last quarter?

Also, we have seen a significant rupee depreciation during the quarter, and yet the margins have more or less remained flat. What is the reason for that? And any visibility you have on the FY'24 growth? Because you are talking about this difficult macro environment and yet you revised up your guidance. So, what are you hearing from clients in terms of their budgets? And these large deals that you say continue to be strong in the pipeline, are you seeing more renewals or newer deals that you expect to win?

And a word on attrition and hiring as well – do you expect it to continue to trend lower? I think it is the lowest in the last five quarters. And also, hiring is lower than the previous quarter – is it because you are anticipating lower growth? Any comment on that as well?

**Salil Parekh**

Thanks for the questions. I will try to get through most of them. On some of the points on margin, Nilanjan will jump in as well.

On the guidance, our focus is really on what we see as we closed out the quarter. We had exceptionally strong growth QoQ 2.4%, YoY 13.7%, for the first nine months, we are at 17.8%. Then we had very strong large deals. At $3.3 bn, it is the largest we have had in eight quarters. And the number of deals is also a testament to the environment for us, at 32 deals, it was very strong. Given all of those factors, we saw that it was right to increase our guidance.

The point we made also is we do see that there are changes in the economic environment. We have called out, for example in Financial Services, beyond mortgages, investment banking; we have called out the Telco sector; we have called out Hi-Tech and Retail. But keeping all that in balance, there were some things that give us a lot of support while we see other factors in the environment changing. But keeping all that in balance, we were ready to increase our guidance.

On attrition, before we go to the margin and so on, we have seen a steady quarter-on-quarter decline for the last several quarters. We believe many of the policies we have put in place to make sure that we are more and more aligned to where our employees are focused on, is helping. And of course, the overall environment is also changing in the market. So, we see attrition continuing to go down.

On FY'24, we have no comments at this stage. We will absolutely look at it at the end of the quarter in Q4. On hiring, we have the number of hiring based on what we saw on the demand, and we have also had a very strong hiring for the full year in FY'23 and also before that. And we are making sure that all of that hiring goes through our various training and is ready for deployment.

**Nilanjan Roy**

Yes. So, on margins, we are at 21.5%, and that is flat sequentially. A couple of reasons, and first you mentioned about the benefits of currency. So, we got a net benefit of about 40 basis points from currency, net of our hedges. So, that was one tailwind for us. We got another benefit of about 70 bps from our cost optimization, for instance, our subcon costs, etcetera.

And from a headwind perspective, there is about 30 basis points additional spend on our SG&A. And the balance, about 80 basis points, was traditional seasonality in the quarter, furloughs, partly because of our third-party costs. So, these are balance, 80 bps. So that is a broad walk about a flat 21.5% margin within our guidance, as you know, of 21%- 22%.

**Rishi Basu**

Thank you. The next question is from Anisha Jain from ET Now. Anisha sends us her questions on text. Salil, the question for you is, there has been a strong execution and deal win in Q3 that led to the guidance upgrade as well. Can we extrapolate this to believe that the client budget will be robust and double-digit revenue growth will sustain in FY'24? And could you give us a bit more insight on the trends you are witnessing in Europe and for verticals like BFSI and Hi-Tech?

And Nilanjan, for you, there is a question on margin, which you just answered. A follow-on question on attrition that is coming down sharply. Could there be a sharp reversal in margins from Q4 onwards? How are the pulls and pushes stacked for margins?

**Salil Parekh**

Thanks, Rishi. On the first part, I think we talked a little bit about why the margin was increased in terms of what we see in the environment. We are not commenting obviously on the financial year '24 and what the guidance or growth in that year will look like. What we do see in terms of demand environment is what I shared earlier. We see some areas, for example, the mortgages area or the investment banking area in financial services, we see some areas in Telco and Hi-Tech and some in Retail.

There is more variation we see in the European markets, more concerns on what is going on with the economy. The US market is also there, but relatively less so in the US compared to Europe. We will see how this plays out because this is not a scenario where it is the same for every industry. For example, we have seen extremely strong growth in energy, utilities, that part of our business, and we continue to see that in Q3. We saw very strong growth in manufacturing, and we continue to see some of that traction in our business in Q3.

**Rishi Basu**

Nilanjan, the question on margin was attrition.

**Nilanjan Roy**

Yes, so absolutely. So one is, of course, as you know, if you have seen our utilization, in fact, that came as a headwind for us. We have built a large, fresher pipeline. They go through our training, like Salil mentioned, at Mysore. And they are on bench now. We are training them, reskilling them. And in fact, that will give us some headroom, for growth looking ahead. So, the question partly about do we need to hire more, so we have a very substantial bench. And I think our utilization at about 81.7% is one of the lowest we have had. So, we have some headroom there.

Looking ahead, of course, subcon costs, we have brought them down. At one stage, we used to be closer to 7% of our revenue, we are at around 8.7%; utilization is another factor. We continue to work on pricing, onsite-offshore, the pyramid itself, with the freshers coming in will help us. So, these are the levers, we will have to deploy as we look ahead, in the next few quarters.

**Rishi Basu**

Thank you, Nilanjan. The next question is from Sajeet Manghat from BQ Prime. Sajeet has a couple of questions. For Salil, he wants to know, give us a sense of the demand environment in North America, UK, and Europe. And have you seen a trend of small deal sizes compared to what we saw in the last two years? Do you foresee a slowdown in deal closures?

Nilanjan, your question is again on margins, which has already been answered. So, I am not asking that again.

**Salil Parekh**

On the demand environment, similar view. I think we see different demand environment in different industries. And even within some industries, there is a variation based on the client. We are also seeing much more demand today for automation, cost efficiency, operational improvement programs.

The size of the deals, as we see with $3.3 bn in large deals, we have a tremendous volume, 32 of those deals for this quarter. So we do see a change in the environment. But we see that both of our engines, the one for digital and cloud driving transformation and the one for automation driving cost efficiency, both are working and growing for us.

**Rishi Basu**

Thank you. The next couple of questions are from ZEE Business, Kushal Gupta, and from Harshada Sawant from CNBC Awaaz. Both are on client and IT budget spending, which we have already answered. I will ask one question. What is the sense you are getting from your clients in terms of future pricing of deals? How concerned are you about Europe and what impact could it have on deal flows ahead?

**Salil Parekh**

Pricing, maybe Nilanjan will take. I will take the question on Europe.

Europe, I think we mentioned earlier that there are differences within the European economies. We are seeing today more economic changes in the European market relative to US. But even so, there is a factor of the industry. We are seeing good traction in some industries, for example, energy utilities, and that is across geography, while we see some constraints which are in Hi-Tech and parts of Financial Services.

**Nilanjan Roy**

On the pricing side I think, we have seen a much more stable pricing regime than what we have seen historically. And part of that has been the high inflation we have seen in these economies as well and also because of the compensation hike. So some of that, we are trying to work with our clients to pass that on, and we have had some successes there.

Of course, things like discounts have actually come down over the years. So, I think this is a discussion we have by each client, and I think that is something which we will continue to work on irrespective for the year ahead.

**Rishi Basu**

Thank you. The next question is from Reuters News from Nandan Mandayam.

**Nandan Mandayam**

I just want to know, how long do you expect the softness in BFSI to persist in the US? And also, if you could give us an insight into how you maintain around the same growth in Europe. And lastly, could you give us an insight into what FY'24 hiring is going to look like, both in the fresher and lateral terms? Is it going to exceed what we have seen in FY'23 so far?

**Salil Parekh**

So, on the BFSI, I think we do not have a definitive number in terms of when things are going to look different. Again, we see differences. There are parts of it, for example, mortgages and investment banking, where we are seeing some constraints on what they are doing with their business. There are other parts of Financial Services, which are not seeing those same constraints. We have places, where because of consolidation of partners, we are actually seeing some growth across some clients as well.

In terms of hiring, we have no comment today on our plans for FY'24. Those things, in any case, we will not comment on the hiring number. We will, at the end of the quarter, lay out the guidance for growth and margin for next year.

**Nandan Mandayam**

Inaudible question

**Salil Parekh**

On Europe, I think we are fortunate to see a very strong growth. We have had a good focus on that geography for the past several years, and we continue to see traction from some of the work and programs that we have started a while ago.

**Rishi Basu**

Thank you. The next question is from The New Indian Express, Uma Kannan.

**Uma Kannan**

Congrats on a strong quarter. So, do you expect client spending to come down in Q4 and whether this includes reduction in workforce? And also, one more on automation that you spoke about just now. So Infosys has good capabilities on automation, AI, ML, how are you looking at this AI chat bot as you have invested in OpenAI also? So what will be the future or how does the future look like in AI? And how this will actually help in servicing your clients better?

**Salil Parekh**

So I think the first part of the question was more on what we see the client spend in Q4. I think our sense is the points that we have laid out with respect to different industries and different clients is what we are seeing right now in Q4. What we see going ahead, we will describe for the financial year '24 as we come to the close of this year.

In terms of automation, we made tremendous progress, and that is one of the reasons, because we have used artificial intelligence, machine learning, we have benefited from clients' needs to be more efficient with their technology spend. And we have been at the forefront of what is going on with automation. And that is really the reason why we see both our digital business and our core services business growing.

On OpenAI, several years ago, Infosys had supported this initiative in a very small way through a donation. We see the progress they have made. Huge congratulations to what they have done. We have examples where we are using ChatGPT with client situations, that is starting to further increase productivity and automation.

**Rishi Basu**

Thank you. The next question is from Haripriya Suresh from Moneycontrol.

**Haripriya Suresh**

Hi, good evening. I have one follow-up on ChatGPT. Just wanted to understand if Infosys at some point – I know OpenAI has since shifted from nonprofit to for-profit – will Infosys look at putting more money? And how do you think it will impact coding and service delivery as well?

Another question is you had a very strong quarter, but do you think we will go back to a single-digit growth? And Nilanjan, just wanted to ask, last quarter, you had mentioned that in H1 FY'23, you had hired 40,000 freshers. 50,000 was the target for this year. How many freshers were hired in Q3? And has that target been revised? Thank you.

**Salil Parekh**

On the first one, I think we have a huge focus and commitment through the past several years on automation, artificial intelligence, machine learning. We have no plans today which relate to anything in terms of an investment in any activity. But we are looking at the way to really work with and partner with, and there are many technologies which enable a way to do low-code/no-code enhancement or efficiency of building code faster. So we are working with several of them to make sure that we work with our clients on it.

**Haripriya Suresh**

In terms of growth?

**Salil Parekh**

On growth, we do not have a guidance for FY'24 at this stage. What we have is really the focus on Q4 and for FY'23.

**Nilanjan Roy**

Yes. On the freshers, I think the 50,000, we are short of that now, but I think we should be around that number by the time we end the year. So, we have continued to hire. Yes, I think about 46,000 we have done, if I am not mistaken.

**Rishi Basu**

Thank you. The next question is from Veena Mani from The Times of India.

**Veena Mani** 

Good evening gentlemen. So, a couple of questions on the HR front. With attrition coming down, will the pressure on giving out more bonuses and increments ease out for you? And also on this quarter's variable pay, on an organization average level, what is it going to be? And if it is 100%, what part of your workforce will be covered in that 100% variable pay bracket?

And, also on the utilization, excluding trainees, it is at 81.7%. Is it largely because even in the existing projects, clients want to ramp down, want to bring down the number of billed resources or why is it exactly?

**Nilanjan Roy**

Yes, sure. So, I will take the second and then the first one. So, 81.7% utilization is largely because of our fresher's bench. That is the biggest reason and because we have been hiring so many freshers through the year and putting them into training. So, over a period of time, they will start going into production, because you cannot overnight put a new project and have them with all the freshers.

And like we have talked about in the past, it was an investment we are ready to make because you cannot overnight flip the model of putting freshers. And so, we are ready to make that investment and then start leading them into the production projects and rotate existing headcount. So, we are not so concerned. Over a period of time, that will start actually helping us.

The second thing about variable pay, we do not disclose the amount of variable pay during the quarter, and that is just something in the past we have looked at pay out to each quarter on performance.

**Veena Mani**

Inaudible question

**Nilanjan Roy**

Yes, that is been going on. Yes, absolutely. In fact, one of the projects is about helping us during this attrition - this whole project internally about predictability of promotions, and that continues unabated as people reach a certain seniority. And in certain levels, we are continuing that.

**Rishi Basu**

Thank you. The next question is from Sai Ishwar from The Economic Times.

**Sai Ishwar**

Hi gentlemen, good evening. So Salil, in the press release, you have said you have gained market share. Could you actually explain in which markets or in which functions are you gaining market share? And, also about the deal win, it has come at an elevated number right now. So, do you think going forward, it is sustainable? And also, could you tell us what worked this time? Do you think your automation capabilities helped in terms of winning a lot of cost-based deals? Could you just give us more colour on the deal pipeline and the wins? Thank you.

**Salil Parekh**

So, on what are the reasons for some of these deals that we are winning or the size and scale of it, I think you are absolutely right, the automation piece, the fact that we have a real strength and industry-leading capability has absolutely helped us. We think we are gaining market share, because if you look at the growth, average growth over the last 12 months, 24 months, 36 months, including in this quarter of the industry and you look at our growth, we think we are ahead of the average. So, we are gaining market share from people who are below that average and it is in multiple areas. We have gained tremendous market share on cloud because of Cobalt, on the digital areas on data, on analytics and also on cost efficiency and automation, because we have the ability to take large platforms and programs and make them more efficient for our clients.

**Rishi Basu**

Thank you. The next question is from Ayushman Baruah from The Financial Express.

**Ayushman Baruah**

Hello. Hi, Salil and team, wishing you a very happy new year, first of all. So, most of the financials have been asked. So, I have something from a technology point of view. Last year, we spoke a lot about Metaverse, right? Infosys has also invested into it. So how do you see the adoption among clients? Is it still in the initial phases? Or have you seen the adoption pick up? That is one.

And number two is that last year, we also heard a lot about moonlighting, right? So over these months, has Infosys firmed up any policies around moonlighting yet?

**Salil Parekh**

So, on Meta, I think we are starting to see, as we discussed last time, some projects, some programs, especially as it relates to AR, VR in the manufacturing context, on a shop floor context, in an education training context and maintenance context. It is small right now, so it is not a large part of what we do, but we are seeing a steady sort of improvement on that.

On people doing gig work, we have made a clear statement a while ago. We are very much of that same view. We have built internal capabilities to support that. We have had a program, which internally we call Accelerate, which was put in place some years ago. And that program is being used to make sure it is done. We want to ensure, while doing all of that, client confidentiality is always maintained. But outside of that, we want to make sure that the employees have the ability to do some of this to improve and enhance their learning.

**Rishi Basu**

Thank you. The next question is from Haripriya Sureban from The Hindu BusinessLine.

**Haripriya Sureban**

Hi guys. Salil, you spoke about client spending. But specifically, when it comes to cloud, we hear that people are taking a re-look at their cloud spend and maybe even rethinking how much they are spending on it. So, what is it that you see on that front? What is your reading on it? And given the current environment, are customers looking at vendor consolidation? And would that be helping you going forward? Thanks.

**Salil Parekh**

On cloud, it is a significant part of what we see within our digital portfolio. We have seen good growth in digital all through the year and including in Q3. We do not split out the cloud growth specifically, but it is in good shape for us as the cloud business is growing based on Cobalt.

Overall, we have seen that there is a focus in some of the industry or some verticals that I mentioned earlier, where there is more attention to what should be done with these transformation programs and much more focus now on how to be more cost efficient. So that is going on as an overlay, but the cloud remains a strong part across all industries.

**Haripriya Sureban**

And on vendor consolidation?

**Salil Parekh**

On vendor consolidation, we see a tremendous benefit for us. We see many large enterprises are starting to look at things which are more in selecting a very small set of partners. And in many of those cases, Infosys becomes the preferred partner for our clients.

**Rishi Basu**

Thank you. We will move on to the next set of questions from journalists who have sent on text.

The first is from Jochelle Mendonca from ET Prime. Jochelle's question is one thing that we have seen is Salesforce talking about a slowdown and there is talk about a slowdown on the hyperscaler side as well. Given that you are a strategic partner to these companies, what are you hearing from them and your clients about the cloud, which has been a big driver of growth?

And the other question is, given the uncertainty, could you give any colour on how close to the growth your customer teams or any steps that you have taken to be able to capitalize when we see an upturn?

**Salil Parekh**

On the cloud, I think it is similar to what we were just sort of mentioning. Essentially, there is still emphasis on what is going on with the cloud. There are just different parts of the industries that are doing things differently. So, if you look at, for example, in energy or utilities clients, if you look at manufacturing, we see a huge movement today already with cloud with all of the components of our Cobalt capability. But in some other industries, it is less so. And therefore, overall, there is obviously less in that.

**Rishi Basu**

The other one was on the uncertainty. Could you give any colour on how close to the growth your customer teams or any steps that you have taken to be able to capitalize for the time when we see an upturn?

**Salil Parekh**

So there, I think we are positioned well with the fact that we have a very strong digital transformation capability. And even today as our clients are looking at it, that capability will become more and more critical as and when the overall economy also changes. And in that same time, the focus on cost efficiency will give us benefit. That is something that we can work on with clients to rationalize what they are doing with their spend across the technology platform.

**Rishi Basu**

Thank you. The next question is from Shouvik Das from Mint.

Salil, for you the question is, the per employee consolidated revenue declined further to $54,000 level, down over 6% Y-o-Y. Does this show that employee costs have still remained high in the sector despite falling attrition rate? And is this something that we expect to see in the coming quarters as well?

For Nilanjan, a couple of questions. You have raised guidance for FY'23 on the back of a strong quarter. However, the number of active $100 million-plus customers reduced by one during the quarter. Is that a factor of uncertainty coming from North America and Europe? And do you expect large deals to remain muted or even decline through the next quarter? This was already asked.

And there is another question. Revenue from India saw a 5.4% Y-o-Y constant currency decline, while the rest of the world, including Europe saw growth. What is the reason for such movement in market metrics?

**Nilanjan Roy**

Okay. So, I will start with India. So, India is a very small portion with about 2.5% of our global business is from India. And a lot of the work we do with our clients is also volume and transaction-led. So, you will see these pluses and minuses on a quarter basis on the growth figure. But like as I again said, it is only 2.5% approximately our revenue.

The second one was about the revenue per person. I think that is just a reflection of our utilization over the year, which was about 88%, and now we are at 81%. So that is just the math of the overall RPP as such. So, our margins have, like I said, quarter-on-quarter, remained stable. So that's a different way to look at the metric because we have also hired freshers during this time, who are sitting on bench and are in training in Mysore. But from a productive perspective, we have seen that utilization factor come down by only about one and a half percent during the quarter.

**Rishi Basu**

Thank you. The next question is from Shivani Shinde from Business Standard. In continuation to the earlier question on cloud, can you give some colour on cloud deals? If cost transformation deals have gone up, why is the core revenue down in reported terms? Also, can you give some colour on the TCVs won this quarter?

**Salil Parekh**

On the deals, first, the reported terms have a lot of currency in it. So, we always look at our business on a constant currency terms. We think that's a metric, which is more stable and more indicative of how the underlying business is doing. So, the key for us there is the core is growing this quarter on a constant currency basis.

We don't typically give out the average TCV on our deals. The reality is we have a huge large-deals number at $3.3 bn, and that makes a big difference as we look ahead into what is going on with the future of the business. On cloud deals, those really come back to what is the view of individual clients and within industries what's happening and then the overlay of the cloud as an ecosystem.

**Rishi Basu**

Thank you. The next question is from Reshab Shaw from the Informist. For Salil, you said Europe sees more stress, but segment revenue shows the region's share of revenue is going up. Going forward, do you see that changing? And what are the reasons that drove large deals even as you said there were delays in decision-making?

**Salil Parekh**

On Europe, to the earlier question about what is the overall economic environment like. We see the economic environment across the world slowing. Within that, relatively, Europe seems to be more slowing than the US today. For our own work, Europe is very strong. We have had a really good platform there, put in place over the last 18-24 months. And we are seeing the benefits of that coming through today and also some of the large programs that we launched in that last 18-24 months' time frame.

**Rishi Basu**

Thank you. The next question is from Debasis Mohapatra from Deccan Herald.

For Nilanjan, despite a fall in attrition and benefits coming from operational efficiency, why did operating margin not improve in Q3? Are large deals margin-dilutive in nature? When can we see revenue per employee inching up?

**Nilanjan Roy**

Yes. So, I think I have answered many of those. So, we have given our margin walk on 21.5% sequentially as well.

And the other one - large deals continue to perform well. You will see our overall strategy over the last four years since the large-deal strategy was put in place. At 21.5%, we are actually well above where we started around FY'20. So, despite all the large deals, we have seen that, as we go through the deal cycles, we have seen the improvement in margins. And of course, new deals come into the funnel with lower margins, but that is a mechanism we have actually mastered, and I think that is something which we do every day.

**Rishi Basu**

Thank you. The next question is from Rohit Chintapali from Businessworld. This is a similar question in case you want to add any more colour to it. Your revenues from North America have declined sequentially and they have improved only marginally in Europe in Q3. This is in line with ICRA's report that predicts moderation of growth in the IT sector over the medium term. How do you plan to address these key markets as you expect tough times ahead?

**Nilanjan Roy**

If you look at our constant currency, we have grown in all the three geographies as Rest of the World, in Europe and in North America. Of course, the growth rates are different. But we are seeing a very strong pipeline in all the markets, like Salil has mentioned.

**Rishi Basu**

Thank you. The next question is from Harichandan Arakali from Forbes. Two questions. One is on hiring in the context of looming recession that I think, gentlemen, you have answered. The next question is, while there is the nuance of Infosys Cobalt and other such capabilities which may be useful to clients, overall, what does the recruiting scene look like in the coming few months?

**Salil Parekh**

On recruitment, I think we have already mentioned – first that we are increasing our growth guidance. We have talked about the recruitment that we have done across this year already. And as we see the demand environment building up, as we see utilization inching up, we will make sure that the recruitment utilization and the way we are training all of the college graduates makes it an efficient model for us to grow with them.

**Rishi Basu**

Thank you. With that, we come to the end of this Q&A session and the press conference. We thank our friends from media for joining us today. Thank you, Salil, thank you, Nilanjan.

Before we conclude, please note that the archived webcast of this press conference will be available on the Infosys website and on our YouTube channel later today.

Thank you very much and have a good evening.

## Exhibit 99.4

**Exhibit 99.4**

**Fact Sheet**

![](factsheet1.gif)

![](factsheet2.gif)

![](factsheet3.gif)

![](factsheet4.gif)

## Exhibit 99.5

**Exhibit 99.5**<br> **Earnings Call**

**Infosys Earnings Call Q3 FY23**

**January 12, 2023** 

**CORPORATE PARTICIPANTS**

**Salil Parekh**

Chief Executive Officer & Managing Director

**Nilanjan Roy**

Chief Financial Officer

**Sandeep Mahindroo**

Financial Controller & Head Investor Relations

**analystS / INVESTORS**

**Nitin Padmanabhan**

Investec

**Bryan Bergin**

Cowen

**Apurva Prasad**

HDFC Securities

**Mukul Garg**

Motilal Oswal Financial Services

**Sudheer Guntupalli**

Kotak Mahindra AMC

**Moshe Katri** 

Wedbush Securities

**Pankaj Kapoor**

CLSA

**Ankur Rudra**

J.P. Morgan

**Vibhor Singhal**

Nuvama Equities

**Sameer Dosani**

ICICI Prudential AMC

**Rahul Jain**

Dolat Capital

**Girish Pai**

Nirmal Bang Securities

**Moderator**

Ladies and gentlemen good day and welcome to the Infosys Limited Earnings Conference Call. As a reminder all participant lines will be in the listen-only mode. Should you need assistance during the conference call, please signal and operator by pressing "\*" and then "0" on your touchtone telephone. After today's presentation there will be an opportunity to ask question. To ask a question you may press "\*" then "1" on your telephone keypad. To withdraw your question please press "\*" then "2". Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo. Thank you, and over to you, Sir!

**Sandeep Mahindroo**

Thanks, Inba. Hello, everyone, and welcome to Infosys earnings call to discuss Q3 FY23 financial results. Let me start by wishing everyone a very happy New Year.

Joining us here on this call is CEO and MD, Mr. Salil Parekh; CFO, Mr. Nilanjan Roy and other members of the senior management team. We will start the call with some remarks on the performance of the company by Salil and Nilanjan, subsequent to which we will open up the call for questions.

Kindly note that anything which we say that refers to our future outlook is a forward-looking statement that must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov.

I would now like to pass on the call to Salil.

**Salil Parekh**

Thanks, Sandeep. Good evening and good morning to everyone on the call. Thank you for joining us.

We are delighted to share with you that our Q3 performance was strong with year-on-year growth of 13.7% and quarter-on-quarter growth of 2.4%. This performance was in a seasonally weak quarter for us and amid a changing global economy. We continue to gain market share.

Growth in Q3 was broad-based, with most industries and geographies growing in double digits in constant currency. Growth in constant currency for nine months of FY23 was 17.8% compared to the same period of FY22. Our large deal value was $3.3 bn, the highest in eight quarters. With 32 large deals, this is the largest number of large deals in our history, 36% of this is net new. Our pipeline of large deals remain strong.

Our digital revenue grew at 22% in the quarter in constant currency and are now close to 63% of our overall revenue. Our core services revenue grew at 2.4%. We are seeing growth in both areas of our business, digital and core services. This is a testament to our industry-leading digital capabilities, including our Cobalt Cloud capability and our industry-leading automation capabilities, both of which are resonating with our clients.

Our large deal pipeline is seeing increased traction for automation and cost efficiency programs. Our results reflect our deep-rooted client relationships, coupled with client-centric strategy, differentiated digital and cloud capabilities, strength in automation and the ability to pivot our business rapidly to changing client needs.

Our cloud revenues continue to have healthy growth this quarter. Our clients are focused on accelerating the digital and cloud transformation, both to grow and to become operationally more efficient. They trust us to partner with them through the complexity of managing this change because of our differentiated capabilities. Our industry-leading cloud offering, Cobalt, is playing a key role in helping them navigate the digital transformation.

Two examples of this,

- Cobalt is helping accelerate business growth and resilience for a large telco and making their decision-making more data driven.

- We are supporting a leading aerospace company by automation of their customer experience area, leveraging a modernized technology infrastructure, driving material cost efficiency.

Strong growth was accompanied by stable operating margin at 21.5%. This was driven by healthy revenue growth and cost optimization benefits. Our operating margin for the first nine months of FY23 was at 21%, in-line with our margin guidance.

Our voluntary quarterly annualized attrition continues to decline steadily and reduced by 6 percentage points sequentially to well below 20% for this quarter.

We are encouraged by the immense confidence and trust that clients have in us. The signs around us, around the slowing global economy are visible. Some areas such as mortgages and investment banking and financial services industry, telco, high-tech and retail are more impacted and that is leading to delays in decision-making and uncertainty in spending in these areas. We are confident that the strength of our digital and cloud capabilities and our automation capabilities will continue to position us well in the market. We are keeping a close watch on the global economy.

Driven by our growth of 17.8% in constant currency for the first nine months of FY23 and strong large deal value for Q3, we are increasing our revenue growth guidance, which was at 15% to 16% earlier to 16% to 16.5%, despite the changing global economic conditions. We are retaining our operating margin guidance for FY23 at 21% to 22%. We anticipate to be at the lower end of this range.

Thank you. And with that, let me request Nilanjan to share other updates.

**Nilanjan Roy**

Thanks, Salil. Good evening, everyone and thank you for joining this call. Let me start by wishing everyone a very happy and safe 2023.

Q3 was another quarter of resilient performance. Our revenue grew by 13.7% year-on-year and 2.4% sequentially in constant currency terms, despite seasonal weakness. Most of our business segments and geos grew in double digits year-on-year in constant currency. Specifically, manufacturing grew by 36.8%, EURS by 25.9% and Europe grew by 25.3%.

Digital revenues constitute 62.9% of total revenues and grew by 21.7% year-on-year in constant currency. Core revenue saw another quarter of growth reflecting the accelerated client focus on cost take-out.

Client metrics continue to remain strong with year-on-year increases in client counts across revenue buckets. Number of $50 mn clients increased by 15 to 79, number of $200 mn clients increased by 5, while number of $300 mn clients increased by 3 over the same quarter last year, reflecting our strong ability to mine top clients. During the quarter, we added 134 new clients.

Utilization, excluding trainees, reduced to 81.7%, reflecting seasonality and employees joining the bench post completion of their training. On-site effort mix remained stable at 24.5%.

Quarterly annualized attrition continued to trend downwards and reduced further by another 6% during the quarter. This is the lowest quarterly annualized attrition in the past seven quarters. Consequently, LTM attrition reduced to 24.3% as compared to 27.1% in Q2. We expect attrition to reduce further in the near-term.

Revenue growth was 17.8% in constant currency terms over nine months FY23. Operating margin for the same period was 21.0%, in-line with the lower-end of our full year guidance as called out earlier.

Q3 operating margin remained steady at 21.5%. The major components of QoQ margin movement are as follows:

Tailwinds of

- approximately 40 basis points due to benefits from Rupee depreciation and cross currency, offset by lower benefits from revenue hedges.

- 70 basis points from cost optimization, including lower subcon.

This was offset by headwinds of

- 30 basis points from higher SG&A and

- the balance 80 basis points due to seasonal weakness in operating parameters, higher third-party costs, furloughs etcetera.

Q3 EPS grew by 13.4% in Rupee terms on a YoY basis.

DSO increased by three days sequentially to 68, reflecting higher billing during the quarter. Our balance sheet continues to remain strong and debt-free. ROE increased by 2.2% YoY to 32.6%. Free cash flow for the quarter was $576 mn, a conversion of 72% of net profit. YTD FCF was $1.8 bn, which is implying a conversion of 81% of net profits.

Yield on cash balances increased to 6.3% in Q3. Q3 marked the 30th consecutive quarter of delivering positive forex income despite the volatile currency environment. Consolidated cash and investments declined from $4.79 bn last quarter to $3.91 bn, consequent to $1.32 bn being returned to investors towards interim dividend and buyback.

We initiated the buyback on December 7<sup>th</sup> and till date have bought back $31.3 mn shares worth ₹4,790 crores or 51.5% of the total authorization of ₹9,300 crores at an average price of approximately ₹1,531 per share compared to the maximum buyback price of ₹1,850 per share.

Coming to segment performance

We signed 32 large deals in Q3, which is the highest ever. TCV was $3.3 bn, the highest in the last eight quarters with 36% net new. 7 large deals were in Retail, 6 each in Financial Services and Communications, 5 each in EURS and Manufacturing, 2 in Life Sciences and 1 in Hi-Tech. Region-wise, this was split by 25 in the Americas, 5 in Europe and 2 in the rest of the world.

Growth in Financial Services was impacted due to a higher-than-normal furloughs and some specific project closures. Deal pipeline continue to be strong and oriented towards cost takeout and tech/ops transformation transformation. Our competitive position in the industry as demonstrated in the past years, remains very strong.

Retailers are seeing uncertainty on consumer spending as a result of high inflation, high interest rates and softer economy. However, at the same time, direct-to-consumer and digital commerce are opening up many new opportunities on the back of our growing presence in leading e-commerce platforms and also our very own Infosys Equinox.

We have healthy deal flow in the Communications segment, along with continued steady pipeline. However, cost pressures and economic concerns continue on the client side impacting discretionary budgets.

Energy, Utility, Resources and Services Segment reported strong growth along with healthy level of large deal wins during the quarter. The deal pipeline is strong and on increasing trend versus the previous quarter, given medium-term growth visibility.

Manufacturing segment continues to be robust, supported by healthy pipeline of deals in both traditional and new technology areas. We are helping clients across engineering, IoT, supply chain, cloud ERP and digital transformation, including helping clients accelerate their journey to the cloud.

We continue to see caution around budget and spending for consumers in the Hi-tech segment, especially around discretionary spend areas.

For Digital service capabilities in Q3, we have been ranked as leader in 7 ratings for our cloud services, digital engineering services and Salesforce implementation services. We have also been positioned as a major player in 7 ratings for our IoT and engineering, security and automation services.

We believe, the structural levers for medium to long-term growth for the industry remains intact and Infosys is well positioned to support its customers in their transformational journey.

With strong revenue performance in the first nine months of the year, the revenue guidance for FY23 has changed to 16% - 16.5%. Operating margin guidance band remains at 21% - 22% for the year. And as mentioned previously, we expect to be at the lower end of the range.

With that, we can open the call for questions.

**Moderator**

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Moshe Katri from Wedbush Securities. Please go ahead. It looks like Mr. Katri's line is dropped. In the meanwhile, we will move to our next question, that is from the line of Nitin Padmanabhan from Investec. Please go ahead.

**Nitin Padmanabhan**

Yes. Hi, good evening and thank you for the opportunity. My question was around the increase in cost of software packages, that is up by almost $69 mn sequentially. How should we think of this cost, do you think this incremental $69 mn will be a sticky number out there or do you think it's sort of representing the headwind -- instead come-off going forward? And is this sort of a pass-through in nature, that is the second sort of clarification on the same thing? Thank you.

**Nilanjan Roy**

Yes, Nitin. So the $69 mn is a combination of software, it is other deals which we do which have DaaS etcetera. It could be infrastructure. So, these are part of our integrated services offering. These come with both manpower component and sometimes they also come with an attachment of these services. So that is the way we do it. It's an integral part of our service offering.

We have to see where we end up for Q4, but I think, this is part of our overall offering and it is actually giving us traction in the market in many of our service lines.

**Nitin Padmanabhan**

Sure. So it is a pass-through in nature in a way, is that correct? And basically, at least earlier in the past, we have suggested that the new level would sort of sustain. So, in the new operating model, this is sort of sticky thing that continues, is that assessment fair – longer time?

**Nilanjan Roy**

Like I said this is integrated with our services offering, so they are not just standalone deals we do, they come with the service element as well. So that is the way you have to look at these deals.

**Nitin Padmanabhan**

Sure, fair enough. Thank you so much and all the best.

**Moderator**

Thank you. Our next question is from the line of Bryan Bergin from Cowen. Please go ahead.

**Bryan Bergin**

Hi, good evening. Thank you. Why don't you just clarify some comments around demand? I am curious, if you would say there is a material change in the way that clients are behaving now versus three months ago, in your reported 2Q, because the areas you are citing weakness, I think were the same ones, the pockets of weakness that you talked about. I am really just trying to understand if you think there has been a real change to spending and contracting there or more broadly the same?

**Salil Parekh**

Hi, thanks for the question. What we are seeing today, in addition to what we said last quarter, for example in financial services beyond mortgages, we see the investment banking side of our clients as well are showing an impact of the economic environment; and they are in telco, hi-tech and retail, in some clients. So, we do not see a material change, but there are within financial services one more area that we see some of the impact coming in.

Having said that, we have, for example clients in energy or utilities or manufacturing, those industries are still looking quite strong in terms of their outlook.

**Bryan Bergin**

Okay, that is helpful. And then on the large deals, the renewals were a big component of that TCV and you have also cited benefits from consolidation in the commentary, are you taking any different approach as it relates to proactive renewals to try to drive more vendor consolidation opportunities?

**Salil Parekh**

Some large deals, as you pointed out, we have had a very strong result, $3.3 bn and 32 deals. We see the focus which we had on transformation continue. But outside of the industries that we discussed before, where there is some impact, we see huge cost automation, cost efficiency plays across all industry segments. And there, we have, we believe, very strong capability, which is helping us. And within all of those discussions, we see areas where there is vendor consolidation. The approach we have put in place is similar to what we have had in the past. However, we see, given our market share gain over the last several quarters, many clients are looking at us, when they start to narrow the list in their vendor consolidation.

**Bryan Bergin**

Okay. Thank you very much.

**Moderator**

Thank you. The next question is from the line of Apurva Prasad from HDFC Securities. Please go ahead.

**Apurva Prasad**

Good evening. Thank you for taking my question. Salil, I'm not asking for any guidance for '24 or ahead, but would appreciate your comments. And generally, the visibility that you have for the year ahead, so how different would it be versus typically this time of the year? So perhaps any comments on pipeline or pipeline-to-TCV conversion?

**Salil Parekh**

Thanks for the question. I think, as you rightly said, we are not in a position to provide the guidance for the year, which starts in April. Pipeline, we have a very strong large deals pipeline. So we are feeling good that the pipeline is at a level which is in good shape. We see good traction of large deals, and we have seen more-and-more relevance, connect with our clients on the cost efficiency and automation plays and in the areas, in the industries where there is economics support, a good traction of Cobalt and the digital transformation plays. So the pipeline is looking quite good today, based on what we see in the deals flow.

**Apurva Prasad**

Got it. And Salil, we called out IB, mortgage and parts of telecom, hi-tech and retail, is there any vertical trend for deals between transformation, the ones that are transformation in nature and deals that are more on the cost optimization across verticals?

And the second part to that is, do you see any moderation in new client acquisition channel with more vendor consolidation deals happening? This was something which had very strong traction more recently.

**Salil Parekh**

On the first part, we see some of the growth transformation plays impacted in those industries that we talked about, for example, mortgage, investment banking, retail, hi-tech, etcetera. The cost efficiency plays everywhere. So we see that even in programs let's say, in the energy sector or manufacturing. There, and in many places, we see essentially clients looking to use the cost efficiency to fund the transformation because in many cases, they still need to drive digital or cloud transformation to keep their market growth or their client connect, customer connect going. So that is how we see that play right now.

**Apurva Prasad**

And Salil, on the other part on the new client acquisition, with more vendor consolidation rates.

**Salil Parekh**

Yes, there on new clients, we have seen -- while we don't disclose the number, we have seen a very good new client acquisition in Q3. And on vendor consolidation -- there's no contradiction in there to at least -- both are carrying on within our sales expansion, new client acquisition continues to be important as well. What we are seeing is on several discussions, clients are looking, especially if they have six or seven vendors, they want to narrow it down to one or two or three, and we are appearing to be beneficiaries in quite a few of those discussions.

**Apurva Prasad**

Got it. Thank you and all the best.

**Salil Parekh**

Thank you.

**Moderator**

Thank you. Our next question is from the line of Mukul Garg from Motilal Oswal Financial Services. Please go ahead.

**Mukul Garg**

Sure. So Salil, I have two questions. First, on the strong TCV wins this quarter. Can you at least qualify how much of the strength was on account of share gains, which you guys have made, versus the resilience, which is there on the technology spend? Because if you look at the broader market commentary, and you have also highlighted retail as one of the weaker areas, whereas you got seven large deals in retail. So if you can just help us break out these two, to get a sense of the deals win momentum?

**Salil Parekh**

I think the large deal momentum for us is really a function of what we have seen that we have put in place, we still, within this mix of $3.3 bn, have digital transformation deal, and we have cost efficiency automation deals. What we mean by some of the industry callouts, for example, retail or telco, is, there are some clients, it is not everyone in that industry, but there are some clients which are getting impacted by the economic environment. We have been quite focused, we have a broader portfolio. So for example, you saw that in retail, we have those large deals there, it is a mix between transformation and cost efficiency automation. And so many times when clients feel an impact of the economic environment, there might be a greater need for the cost efficiency play as well. So we are ensuring that both of those engines continue to work well with our clients.

**Mukul Garg**

Right. And another question was on the margin side. You guided for margins of 21%-22% band, with margins towards the lower end. Can you just help us with the -- what are the pools which you are seeing on profitability, given that the supply scenario is easing rapidly? Is there some portion of the pressure which is on account of the higher share of cost efficiency deals, which you guys are winning with initial ramp-up cost? Because if you look at Q4, obviously, Q3 also had the pass-through business, which got impacted. I'm assuming, as Nilanjan mentioned, there was some seasonality into that.

**Nilanjan Roy**

Yes. So I think like we mentioned, the reason for Q3 margins, we have already given the breakdown. So as we look ahead, see the levers which we have, one is, utilization. And you have seen at 81.7% - this is probably, I think, one of the lowest in the last three to four years since I've been here. So that is one lever which we will have.

And as we start putting these freshers onto the production floor, you will automatically get a pyramid benefit. So that will be a double value benefit for us.

We also have subcons today, we have dramatically reduced our subcons literally in three quarters. We were 11% plus, we are at 8.7%. Historically, we have been at 7%. If you look at our pricing, it has been quite stable. And historically, this is one lever which always used to drag down, repeatedly, due to discounts on renewals, et cetera. And as of now, we have not seen that at all. We continue to push with clients on where all we can get price increases.

Automation – in terms of our own workforce continuing to operate that and that is a steady lever which we have. So we are continuing to use these levers as we look ahead, and we will continue to deploy them.

**Mukul Garg**

Right. So, is it fair to assume that we should see at least better profitability in the next quarter, given that we have a number of levers with us?

**Nilanjan Roy**

So we have given a guidance for the year. You have seen in the first nine months, and that should give a good indication of what could Q4 be.

**Mukul Garg**

Fair enough. Thanks for taking my question. I'll get back into the queue.

**Moderator**

Thank you. Our next question is from the line of Sudheer Guntupalli from Kotak Mahindra Asset Management. Please go ahead.

**Sudheer Guntupalli**

Good evening gentlemen. Thanks for the opportunity and congrats on a good quarter. Salil, during some of the previous macro uncertainties like Brexit, within a few weeks of the vote, we had seen some of our large clients canceling and ramping down projects. This time, even on the tough comps, the pace of growth moderation is much lower than what many people have been anticipating.

And many forward-looking indicators like deal wins, pipeline and CIO surveys still continue to be very strong, even 11, 12 months into this macro concerns. So having seen the previous three to four macro downturns, how do you nuance the current cycle, especially on the variable of the resilience of IT service spends?

**Salil Parekh**

So, thanks for the question. It's always difficult to compare across cycles. From the perspective of Infosys, my sense is what you mentioned earlier, we are still seeing the pace of change when there is change within an industry or a client to be not rapid. And we are also seeing that the opportunities for cost optimization and efficiency are expanding within the work that we are doing. So in many ways, we are in a good position to be able to work on both sides.

And so while it is difficult to predict what the way the situation in the economy will evolve, we feel quite balanced. Our sales team is quite agile. We have pivoted quite quickly and developed various points of view on different efficiency scenarios in different industries that we feel comfortable that the pipeline is looking good at this stage, and we will continue to work on that.

**Sudheer Guntupalli**

Sure. Thanks Salil. So, is it a right understanding to say that we are now in a much better position to navigate this macro weakness, probably through more than enough compensation from the cost efficiency deal and vendor consolidation deal? Is that a correct interpretation?

**Salil Parekh**

The way we see it is we have both components of -- at least the two large components the clients are looking for, we have good industry-leading capability. So it's really a function of how a specific industry or subindustry or a client will evolve. But we have positioned ourselves to make sure that we can support our clients in that area.

**Sudheer Guntupalli**

Sure. Thanks Salil. All the best for the future.

**Moderator**

Thank you. Our next question is from the line of Moshe Katri from Wedbush Securities. Please go ahead.

**Moshe Katri**

Thank you, and happy New Year, and congrats on strong execution in a pretty tough environment. I have a three-part question. First, March guidance upgrades is pretty unusual from a seasonality perspective and given the macro concerns. So it seems like you have better visibility, now, can you share any views on the budget cycle itself? We were kind of concerned over slippages, maybe a month or two, budget delays. Are you seeing any of that or you think that budget will be awarded or finalized as on time this time?

**Salil Parekh**

Thanks Moshe. On the budget, so far, we have seen, in some clients and especially in the industries we have called out, some areas where there has been slowness in deciding or some changes, especially on some discretionary work. So we mentioned hi-tech, for example or mortgages or bank, investment banking. So all of those ones that we mentioned before.

But we don't see a broad-based change. Equally, we do see good behavior with the budgets moving ahead as in the past, with energy, utilities, manufacturing. So, it is not like one answer that it's a little bit by industry or sub industry somewhat different.

**Moshe Katri**

Understood. And then you, in the press conference, you mentioned that about a 1/3 of your new or 1/3 of TCV came in from new logos. Can you remind us, is this within the range of what you've seen in the past in terms of mix of new logos versus renewals?

**Salil Parekh**

Referring to the large deals, $3.3 bn, there was 36% net new. That is in the range where we do - some quarters it's lower, some quarters higher, but these numbers are not unusual.

**Moshe Katri**

Okay. And then the final question is for Nilanjan. When we met in Bangalore back in December, you pointed to pivot in the nature of the new deals flow towards, as you said, cost optimizations and vendor consolidation. Obviously, this is what you're seeing. Are these deals typically less dependent on clients' budgets, given the fact that you're taking over a specific function with the objective of reducing delivery costs? And is there any difference in profitability levels here in terms of these projects versus some of these projects that you've been doing in the past few years? Thank you.

**Salil Parekh**

So in that, I think the way you described it, these are not fully correlated with the budget of a client. In many instances these are areas where given the evolving economic situation, clients are looking to reduce their tech spend across the enterprise, in many cases, use some of that savings to fund transformation programs. It sometimes gets coupled with vendor consolidation. So let's say – there are clients who may have five or six vendors and when we benefit from the consolidation we see tremendous efficiency that can be created. Our automation tools become quite useful. We typically add automation on our ongoing programs, which give an annual benefit. But when we see something of scale where we have not been involved earlier, we have an ability to provide a much greater benefit. In aggregate, the profitability of these deals is within the range of the rest of our company and especially has been more-and-more over time leverage the automation tools and our capabilities, we see these becoming stable high profit deals.

**Moshe Katri**

That is very helpful. Thank you.

**Moderator**

Thank you. Our next question is from the line of Pankaj Kapoor from CLSA. Please go ahead.

**Pankaj Kapoor**

Yes. Hi. Thanks for the opportunity. So, my first question is on the smaller deals, which are less than, say, $50 mn TCV. If you can give some qualitative color on how your win and pipeline in that basket has been moving? Is it higher, lower versus, say, what it was six months back?

**Salil Parekh**

Thanks for the question. We don't typically disclose much about those deals. Overall, we have a good healthy pipeline while we publicly disclose more about the larger deals.

**Pankaj Kapoor**

Understood. And Salil my second question is on these cost takeout deals. Can you give some sense on how the pricing in such deals behaving? Are you seeing the pressure there more than normal, either because clients are pushing for more discounts or because of competitive intensity?

**Salil Parekh**

So there, the pricing in Q3, we have seen quite stable within the mix, we have not seen a change. Typically, it is really a function of what type of focus that clients have, which industry they are in, as we have not seen, at least in Q3, in the deals that we have closed in the discussion we have had, a big change on that. It looks stable at this stage.

**Pankaj Kapoor**

Thank you and wish you all the best for '24.

**Moderator**

Thank you. Our next question is from the line of Ankur Rudra from J.P. Morgan. Please go ahead.

**Ankur Rudra**

Hi, thank you and congratulations on strong headline numbers there. I'm going to try Pankaj's question in a different way. You mentioned in previous calls that the mix of deals was changing in favor of smaller deals. And that is why the headline, TCV was declining, but growth was still quite healthy. This time, of course, both have done well. Do you think the mix of deals is still the same as it was in the last year before this quarter?

**Salil Parekh**

Hi, Ankur this is Salil. I am not clear on the mix of deals on the previous discussions. But just looking backwards, we see the mix of deals remaining in good shape across the board. There are some quarters in which there are disproportionate number of larger-sized deals. But in general, we do not have a pattern in that, at least that is evident in Q3 here.

**Ankur Rudra**

Okay. All right. The next question I wanted to check, Salil, again, was on the US business. The headline growth seems to sort of slipped down to close to low double digits, whereas the Y/Y growth has been led by very strong performance in Europe and manufacturing.

Do you worry about the US business it is sort of slower than Europe it is not the case in the rest of the industry then many of your peers?

**Salil Parekh**

So there, Ankur, our view is, we have had very strong growth in the US at over 10% in Q3 in constant currency. Europe, of course, has been a standout in the growth that we have had. We feel the traction, the pipeline, the work remains pretty strong, as we have described earlier, across the two dimensions, transformation and cost, across the geographies.

If you look at the economic situation, we do see the European side a little more impacted, but we see good traction on the pipeline on both sides. We had a very successful Europe program over the last 18, 24 months, and that is also helping us with the growth in this quarter.

**Nilanjan Roy**

I mean out of our 32 large deals this quarter, 25 were actually in the Americas. So I think -- just to, show that we have a very strong pipeline there.

**Ankur Rudra**

Understood. Maybe a last question over here was on pricing and contract profitability in the projects you are winning right now, especially the large number of big deals this time you signed. How is that trending? Is that improving, staying the same or maybe becoming a bit lower than before?

**Nilanjan Roy**

These are for the new deal signings?

**Ankur Rudra**

Yes, new deal signings this quarter. How is that trending versus before?

**Nilanjan Roy**

No, I don't think anything is unusual. Yes, absolutely new deals, I mean since many clients want the productivity, efficiencies upfront. So we always see that the initial part of the deals will be lower-than-portfolio margins.

But like we have shown in the past, at the same time, our existing deals are reaching higher profitability, and that offsets some of this pressure which is coming from the newly signed deals, where the margins will typically be lower. But nothing unusual on the trends.

**Ankur Rudra**

Okay. Appreciate it. Thank you for the color and best of luck.

**Moderator**

Thank you. Our next question is from the line of Vibhor Singhal from Nuvama Equities. Please go ahead.

**Vibhor Singhal**

Hello. Yes. Hi. Thanks for taking my question and congrats on a solid quarter. So, Salil my question -- I have just two questions. One, I wanted to basically get an idea on -- I mean you've seen attrition coming down in this quarter quite sharply. And as you mentioned in your opening remarks as well, so how do you see the trend of this attrition going forward, of course, downwards? And how do you believe the benefit of this could actually percolate to our margins? Again, not asking for objective guidance of a number. But in terms of the direction, do you think it is going to aid our margins? Or do you think most of the impact of this is already built into the numbers that we have currently?

And my second question was majorly on the geography of Europe. So just wanted to pick your brain on how the conversations with the clients are happening in that part of geography, specifically if you could maybe break up between Continental Europe, Eastern Europe and in the UK?

And which pockets of those geographies do you think are looking more softer? Or is there more of delayed decision-making in that part of the geography?

**Nilanjan Roy**

I'll take the first one on the lower attrition. Absolutely, we have seen this coming down. And like we said, even in the future in the next quarter, at least until -- what we are seeing the latest initial figures we are seeing this coming down.

Absolutely, this should have a positive impact on margins. I mean, during the year, whether it was stretched hiring on laterals, whether it was the compensation hikes we did, that really impacted our year-on-year margin story.

So as looking ahead in attrition, as an impact both the macroeconomic and also the internal policies we are doing in terms of promoting within, etcetera, should benefit us.

**Salil Parekh**

On Europe, I think the way we see - some 25% of our business in Europe, and we have a few countries. In the countries we operate in, we see some slowing, some economic impact in Germany. There is some in the UK, less so in the Nordic countries at this stage.

But overall, the coloring is a little bit more by the industries that we mentioned earlier in the call, which are across sort of on a global perspective. But relatively, Europe seems a little bit more impacted today than certainly the US.

**Vibhor Singhal**

Got it. If I can just maybe drill down just a little bit more, any specific color that you can provide on European Retail and European Manufacturing segments?

**Salil Parekh**

So there, we don't necessarily provide that much sort of granularity, same comments on a global level on manufacturing that we mentioned earlier and for energy, which is looking stronger, and more sort of, let's say, attention to the economy on retail in this case.

**Vibhor Singhal**

Got it. And the softness in retail, do you believe it is, as of now, confined to the retail stores and maybe percolate, and you could in your discussion with clients, do you see percolating down to the CPG companies and probably other ones as well? But as of now, if you it is limited to more of the retail stores that we are talking about?

**Salil Parekh**

So within retail, we have not called out any specific subsegment, at least in our commentary. We have not gone down to that granularity in our public statements.

**Vibhor Singhal**

All right. Got it. Thanks for taking my questions and wish you all the best.

**Moderator**

Thank you. Our next question is from the line of Sameer Dosani from ICICI Prudential Asset Management. Please go ahead.

**Sameer Dosani**

Thanks a lot. Just one question around Europe again. If I look at your commentary around regions in North America versus Europe, Europe looks more cautious overall. But if I look at performance for the last few quarters, I think Europe has been performing better than North America as a whole.

So, do you think this impact of the cautiousness is yet to reflect in the numbers and you see more growth trajectory will be a little more affected, going forward, in your thoughts around that?

**Salil Parekh**

I think, in Europe, there is two different things. We have had a very strong Europe program, both on transformation and cost over the last 18, 24 months. So, some of that comes through in the benefits we see, even in this quarter.

The commentary or the view is more to share what we are seeing just in the economic activity. And again, we see the coloring more by industry, which is a little bit global as, opposed to just specifically across the board in a geography.

**Sameer Dosani**

So the outlook -- I mean, do you think the outlook that you're giving will reflect in the numbers in medium term in the next two quarters because till now, it has been an outperformer versus the overall portfolio? Thanks.

**Salil Parekh**

So there, we have given a view on outlook only up until March this year, so we will come up with a guidance for the next financial year at the end of this quarter.

**Sameer Dosani**

Okay and that is it from my side. Thanks.

**Moderator**

Thank you. Our next question is from the line of Girish Pai from Nirmal Bang Equities. Please go ahead. Mr. Girish Pai, could you please unmute and go ahead with your questions? As there is no response from this connection, we will move to our next question, that is from the line of Rahul Jain from Dolat Capital. Please go ahead.

**Rahul Jain**

Yes. Hi. Thanks for the opportunity. Firstly, we commented that manufacturing is doing well for us, but actually the vertical is doing exceedingly well in European region, where it is up 60% YoY, but is much weaker in the US, where it is up 7% YoY.

So, what is that we are doing so well in Europe? Is it led by a few very crucial deals? Or it's more holistic? And why it's different in the US?

**Salil Parekh**

So, thanks for the question. Within the industry, we don't typically comment on a client, multi-client level activity. But we do have good traction, as you pointed out, within a European business in manufacturing.

**Rahul Jain**

Okay. And another thing was on digital revenue. For the quarter, it is up 17% YoY or let say, CC would be 20% or 21%. This is like our slowest ever since we have been giving this time series on digital revenue. So is this a bit worrying? Or is it more because of the furlough and any other factor?

**Salil Parekh**

So there, it's partially due to some of the changes that we were discussing earlier where in certain industries and sub industries. We see much more attention to the economic environment. And there, we see some of the digital or transformation work being slower, where we see much more focus across the board on the cost and automation plays.

**Rahul Jain**

Got it. And lastly, if I can, the margin impact of furlough was too high in the quarter. How has this shaped up in the current month? Are these clients resumed to normalcy now? Or the pain remains extended in Q4 as well?

**Nilanjan Roy**

So we will have to see how it goes, it is a bit too early to say what is going to be the Q4 outlook on that.

**Rahul Jain**

Okay. That is it from my side. Thank you so much.

**Moderator**

Our next question is from the line of Girish Pai from Nirmal Bang Securities.

**Girish Pai**

Yes. Thank you for the opportunity. I just wanted to understand with cost optimization deals more in the pipeline and in the TCV, has the average deal tenure gone up in the last couple of quarters?

**Salil Parekh**

So, thanks for the question. We don't typically comment on the deal tenure in terms of public statements.

**Girish Pai**

Okay, you said that the third-party items, have given you a lot of traction in terms of getting deals. Now the number has gone up from about less than 2% of revenue to almost like -- I think this quarter is -- in this quarter, it comes to almost 6.5% of revenue. Do you see this number going up in the coming quarters and years?

**Nilanjan Roy**

Like I said, our offering is quite holistic. In some cases, many of the cloud-based deals come with services, there could be licenses, there could be DaaS. So more and more integrated deals.

And then you go to IT as a Service, which is really sort of very holistic, we could see this. But I mean, it may vary from quarter to quarter, you could have some quarters which are up. But there's nothing to say that in the long run where this is going. It's a bit early to say that.

**Girish Pai**

Okay. And lastly, from a competitive landscape perspective in the vendor consolidation deals, who are the ones losing out? Are these the global MNCs or these are typically Tier 2 vendors?

**Salil Parekh**

Again, on those, we don't specifically comment on where we are getting the benefit of the consolidation. We are seeing some benefits coming through with large clients.

**Girish Pai**

Ok, thank you very much.

**Moderator**

Ladies and gentlemen, that was the last question. I now hand the conference back to the management for closing comments.

**Salil Parekh**

Thank you, everyone, for joining us. Fantastic to have our Q3 close out, 13.7% growth, 21.5% operating margin, $3.3 bn in large deals, very happy with that outcome.

We can see a guidance increase on our growth for that. And we can see both sides of our business on transformation, digital work and core services, cost automation working well.

And so we feel good with the current environment and how we can play and support our clients on both sides.

Thank you all for joining us, and we look forward to catching up during the quarter. Thank you.

**Moderator**

Thank you. Ladies and gentlemen, on behalf of Infosys Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

## Exhibit 99.6

**Exhibit 99.6**<br> **Form of Release to Stock Exchanges**

**INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED** 

**Opinion** 

We have audited the accompanying Statement of Consolidated Financial Results of **INFOSYS LIMITED** (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group") for the quarter and nine months ended December 31, 2022, (the "Statement") being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

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

&nbsp;&nbsp;&nbsp;&nbsp;i. includes the results of the entities as given in the Annexure to this report;

&nbsp;&nbsp;&nbsp;&nbsp;ii. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations;
and

&nbsp;&nbsp;&nbsp;&nbsp;iii. gives a true and fair view in conformity with the recognition and measurement principles
laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section
133 of the Companies Act, 2013 (the "Act") read with relevant rules issued thereunder and other accounting principles generally
accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group
for the quarter and nine months ended December 31, 2022.

**Basis for Opinion** 

We conducted our audit in accordance with the Standards on Auditing ("SA"s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor's Responsibilities for audit of the consolidated financial results section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the consolidated financial results for the quarter and nine months ended December 31, 2022 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

**Management's Responsibilities for the Consolidated Financial Results**

This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been compiled from the related audited interim condensed consolidated financial statements for the quarter and nine months ended December 31, 2022. This responsibility includes the preparation and presentation of these consolidated financial results that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group in accordance with the recognition and measurement principles laid down in the Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

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

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

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

**Auditor's Responsibilities for Audit of the Consolidated Financial Results** 

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

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

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the consolidated financial results,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors
in terms of the requirements specified under Regulation 33 of the Listing Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of the Board of Directors' use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure and content of the consolidated financial results,
including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner
that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
within the Group to express an opinion on the consolidated financial results. We are responsible for the direction, supervision and performance
of the audit of financial information of such entities included in the consolidated financial results of which we are the independent
auditors.

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

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

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

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| | |
|:---|:---|
| Place: Bengaluru<br> Date: January 12, 2023 | **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018)<br>![](sanjiv-signature.gif) <br>**Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRXV3132  |

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**Annexure to Auditor's Report**

**List of Entities:**

1. Infosys Technologies (China) Co. Limited

2. Infosys Technologies S. de R. L. de C. V.

3. Infosys Technologies (Sweden) AB

4. Infosys Technologies (Shanghai) Company Limited

5. Infosys Nova Holdings LLC.

6. EdgeVerve Systems Limited

7. Infosys Austria GmbH

8. Skava Systems Private Limited (under liquidation)

9. Infosys Chile SpA

10. Infosys Arabia Limited (under liquidation)

11. Infosys Consulting Ltda.

12. Infosys Luxembourg S.a.r.l

13. Infosys Americas Inc.

14. Infosys Public Services, Inc.

15. Infosys Canada Public Services Inc. (liquidated effective November 23, 2021)

16. Infosys BPM Limited

17. Infosys (Czech Republic) Limited s.r.o.

18. Infosys Poland Sp z.o.o

19. Infosys McCamish Systems LLC

20. Portland Group Pty Ltd

21. Infosys BPO Americas LLC.

22. Infosys Consulting Holding AG

23. Infosys Management Consulting Pty Limited

24. Infosys Consulting AG

25. Infosys Consulting GmbH

26. Infosys Consulting S.R.L (Romania)

27. Infosys Consulting SAS

28. Infosys Consulting s.r.o. v likvidaci (formerly Infosys Consulting s.r.o.) (liquidated effective December 16, 2021)

29. Infosys Consulting (Shanghai) Co., Ltd. (liquidated effective September 01, 2021)

30. Infy Consulting Company Ltd.

31. Infy Consulting B.V.

32. 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 effect from April 1, 2022

33. Infosys Consulting (Belgium) NV

34. Panaya Inc.

35. Panaya GmbH (renamed as Infosys Financial Services GmbH)

36. Panaya Ltd.

37. Brilliant Basics Holdings Limited (under liquidation)

38. Brilliant Basics Limited (under liquidation)

39. Infosys Consulting Pte. Ltd.

40. Infosys Middle East FZ LLC

41. Fluido Oy

42. Fluido Sweden AB (Extero)

43. Fluido Norway A/S

44. Fluido Denmark A/S

45. Fluido Slovakia s.r.o

46. Infosys Compaz Pte. Ltd.

47. Infosys South Africa (Pty) Ltd

48. WongDoody Holding Company Inc. (merged with WongDoody, Inc effective December 31, 2021)

49. WDW Communications, Inc. (merged with WongDoody, Inc effective December 31, 2021)

50. WongDoody, Inc (became wholly-owned subsidiary of Infosys Limited effective December 31, 2021)

51. HIPUS Co., Ltd.

52. Stater N.V.

53. Stater Nederland B.V.

54. Stater XXL B.V.

55. HypoCasso B.V.

56. Stater Participations B.V.

57. Stater Belgium N.V./S.A.

58. Outbox systems Inc. dba Simplus (US)

59. Simplus North America Inc. (liquidated effective April 27, 2021)

60. Simplus ANZ Pty Ltd.

61. Simplus Australia Pty Ltd

62. Sqware Peg Digital Pty Ltd (liquidated effective September 02, 2021)

63. Simplus Philippines, Inc.

64. Simplus Europe, Ltd. (liquidated effective July 20, 2021)

65. Infosys Fluido UK, Ltd. (formerly Simplus U.K, Ltd)

66. Infosys Fluido Ireland, Ltd. (formerly Simplus Ireland, Ltd)

67. Infosys Limited Bulgaria EOOD

68. Infosys BPM UK Limited

69. Blue Acorn LLC (merged with Beringer Commerce Holdings LLC effective January 1, 2022)

70. Beringer Commerce Inc renamed as Blue Acorn iCi Inc.

71. Beringer Capital Digital Group Inc (merged with Blue Acorn iCi Inc effective January 1, 2022)

72. Mediotype LLC (merged with Blue Acorn iCi Inc effective January 1, 2022)

73. Beringer Commerce Holdings LLC (merged with Blue Acorn iCi Inc effective January 1, 2022)

74. SureSource LLC (merged with Beringer Commerce Holdings LLC effective January 1, 2022)

75. Simply Commerce LLC (merged with Beringer Commerce Holdings LLC effective January 1, 2022)

76. iCiDIGITAL LLC (merged with Beringer Capital Digital Group Inc effective January 1, 2022)

77. Kaleidoscope Animations, Inc.

78. Kaleidoscope Prototyping LLC

79. GuideVision s.r.o

80. GuideVision Deutschland GmbH

81. GuideVision Suomi Oy

82. GuideVision Magyarorszag Kft

83. GuideVision Polska SP Z.O.O

84. Infosys Business Solutions LLC, a wholly-owned subsidiary of Infosys Limited (incorporated on February 20, 2022)

85. Infosys Germany GmbH (formerly Kristall 247. GmbH) (acquired on March 22, 2022)

86. GuideVision UK Ltd

87. Infosys Turkey Bilgi Teknolojikeri Limited Sirketi

88. Infosys Germany Holding Gmbh

89. Infosys Automotive and Mobility GmbH & Co. KG, a partnership firm

90. Stater GmbH (incorporated on August 4, 2021)

91. Infosys Green Forum (incorporated on August 31, 2021)

92. Infosys (Malaysia) SDN. BHD. (formerly Global Enterprise International (Malaysia) Sdn. Bhd. (acquired on December 14, 2021)

93. oddity space GmbH acquired by Infosys Germany GmbH on April 20, 2022

94. oddity jungle GmbH acquired by Infosys Germany GmbH on April 20, 2022

95. oddity waves GmbH acquired by Infosys Germany GmbH on April 20, 2022

96. oddity group services GmbH acquired by Infosys Germany GmbH on April 20, 2022

97. oddity code GmbH acquired by Infosys Germany GmbH on April 20, 2022

98. oddity code d.o.o. (subsidiary of oddity Code GmbH) acquired by Infosys Germany GmbH on April 20, 2022

99. oddity GmbH acquired by Infosys Germany GmbH on April 20, 2022

100. oddity (Shanghai) Co. Ltd. (subsidiary of oddity GmbH) acquired by Infosys Germany GmbH on April 20, 2022

101. oddity Limited (Taipei) (subsidiary of oddity GmbH) acquired by Infosys Germany GmbH on April 20, 2022

102. Infosys Public Services Canada Inc. (a wholly owned subsidiary of Infosys Public Services Inc.) incorporated on July 8, 2022

103. BASE life science A/S acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

104. BASE life science AG (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

105. BASE life science GmbH (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

106. BASE life science Ltd. (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

107. BASE life science S.A.S. (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

108. BASE life science S.r.l. (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

109. Innovisor Inc. (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

110. BASE life science Inc. (a wholly owned subsidiary of BASE life science A/S) acquired by Infosys Consulting Pte. Ltd. on September 1, 2022

111. BASE life science SL. (a wholly owned subsidiary of BASE life science A/S) incorporated on September 6, 2022

112. Panaya Germany GmbH (a wholly owned subsidiary of Panaya Inc.) incorporated on December 15, 2022.

113. Infosys Employees Welfare Trust

114. Infosys Employee Benefits Trust

115. Infosys Science Foundation

116. Infosys Expanded Stock Ownership Trust

**INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED**

**Opinion** 

We have audited the accompanying Statement of Standalone Financial Results of INFOSYS LIMITED (the "Company"), for the quarter and nine months ended December 31, 2022, (the "Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

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

&nbsp;&nbsp;&nbsp;&nbsp;a. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations;
and

&nbsp;&nbsp;&nbsp;&nbsp;b. gives a true and fair view in conformity with the recognition and measurement principles
laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section
133 of the Companies Act, 2013 (the "Act") read with relevant rules issued thereunder and other accounting principles generally
accepted in India of the net profit and total comprehensive income, and other financial information of the Company for the quarter and
nine months ended December 31, 2022.

**Basis for Opinion** 

We conducted our audit of the Statement in accordance with the Standards on Auditing ("SA"s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Results for the quarter and nine months ended December 31, 2022 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

**Management's Responsibilities for the Standalone Financial Results** 

This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been compiled from the related audited interim condensed standalone financial statements for the quarter and nine months ended December 31, 2022. This responsibility includes the preparation and presentation of the standalone financial results for the quarter and nine months ended December 31, 2022 that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the standalone financial results,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors
in terms of the requirements specified under Regulation 33 of the Listing Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of the Board of Directors' use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the interim condensed standalone
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going
concern.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure and content of the standalone financial results,
including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner
that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain sufficient appropriate audit evidence regarding the standalone financial results of
the Company to express an opinion on the standalone financial results.

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

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

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

---

| | |
|:---|:---|
| Place: Bengaluru<br> Date: January 12, 2023 | **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018)<br>![](sanjiv-signature.gif) <br>**Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRXX5325 |

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| | | |
|:---|:---|:---|
| ![](infosysnyn.gif) | &nbsp;&nbsp; Infosys Limited<br> Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | &nbsp;&nbsp; CIN : L85110KA1981PLC013115<br> Website: www.infosys.com<br> email: investors@infosys.com<br> T: 91 80 2852 0261, F: 91 80 2852 0362 |

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**Statement of Consolidated Audited Results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2022 prepared in compliance with the Indian Accounting Standards (Ind-AS)**

*(in ![](rupee-symbol.gif) crore, except per equity share data)*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp; **Quarter ended December 31,** | &nbsp;&nbsp; **Quarter ended September 30,** | &nbsp;&nbsp; **Quarter ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Year ended March 31,** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** |
|  | &nbsp;&nbsp;**Audited** | &nbsp;&nbsp;**Audited** | &nbsp;&nbsp;**Audited** | &nbsp;&nbsp;**Audited** | &nbsp;&nbsp;**Audited** | &nbsp;&nbsp;**Audited** |
| &nbsp;&nbsp;**Revenue from operations** | &nbsp;&nbsp; 38318 | &nbsp;&nbsp; 36538 | &nbsp;&nbsp; 31867 | &nbsp;&nbsp; 109326 | &nbsp;&nbsp; 89365 | &nbsp;&nbsp; 121641 |
| &nbsp;&nbsp;Other income, net | &nbsp;&nbsp; 769 | &nbsp;&nbsp; 584 | &nbsp;&nbsp; 512 | &nbsp;&nbsp; 2030 | &nbsp;&nbsp; 1658 | &nbsp;&nbsp; 2295 |
| &nbsp;&nbsp;**Total Income** | &nbsp;&nbsp; **39087** | &nbsp;&nbsp; **37122** | &nbsp;&nbsp; **32379** | &nbsp;&nbsp; **111356** | &nbsp;&nbsp; **91023** | &nbsp;&nbsp; **123936** |
| &nbsp;&nbsp;**Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefit expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20272 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19438 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16355 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58048 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47328 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of technical sub-contractors | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3694 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3511 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10946 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9019 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Travel expenses | &nbsp;&nbsp; 360 | &nbsp;&nbsp; 363 | &nbsp;&nbsp; 221 | &nbsp;&nbsp; 1099 | &nbsp;&nbsp; 518 | &nbsp;&nbsp; 827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of software packages and others | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3085 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2512 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1861 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8017 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4543 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Communication expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 189 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 147 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 542 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 441 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consultancy and professional charges | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 401 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 520 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1296 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1364 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortisation expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1125 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 899 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3104 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2586 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 202 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | &nbsp;&nbsp; 1307 | &nbsp;&nbsp; 1001 | &nbsp;&nbsp; 869 | &nbsp;&nbsp; 3246 | &nbsp;&nbsp; 2507 | &nbsp;&nbsp; 3424 |
| &nbsp;&nbsp;**Total expenses** | &nbsp;&nbsp; **30156** | &nbsp;&nbsp; **28731** | &nbsp;&nbsp; **24436** | &nbsp;&nbsp; **86500** | &nbsp;&nbsp; **68456** | &nbsp;&nbsp; **93826** |
| &nbsp;&nbsp;**Profit before tax** | &nbsp;&nbsp; **8931** | &nbsp;&nbsp; **8391** | &nbsp;&nbsp; **7943** | &nbsp;&nbsp; **24856** | &nbsp;&nbsp; **22567** | &nbsp;&nbsp; **30110** |
| &nbsp;&nbsp;Tax expense: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current tax | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2195 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2482 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5986 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | &nbsp;&nbsp; 150 | &nbsp;&nbsp; (117) | &nbsp;&nbsp; 58 | &nbsp;&nbsp; (145) | &nbsp;&nbsp; 130 | &nbsp;&nbsp; 153 |
| &nbsp;&nbsp;**Profit for the period** | &nbsp;&nbsp; **6586** | &nbsp;&nbsp; **6026** | &nbsp;&nbsp; **5822** | &nbsp;&nbsp; **17974** | &nbsp;&nbsp; **16451** | &nbsp;&nbsp; **22146** |
| &nbsp;&nbsp;**Other comprehensive income** |  |  |  |  |  |  |
| &nbsp;&nbsp;*Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of the net defined benefit liability/asset, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (53) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (72) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity instruments through other comprehensive income, net | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 4 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 8 | &nbsp;&nbsp; 41 | &nbsp;&nbsp; 96 |
| &nbsp;&nbsp;*Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedges, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (57) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (43) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translation of foreign operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 676 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 715 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 91 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on investments, net | &nbsp;&nbsp; 48 | &nbsp;&nbsp; 26 | &nbsp;&nbsp; (77) | &nbsp;&nbsp; (298) | &nbsp;&nbsp; 16 | &nbsp;&nbsp; (49) |
| &nbsp;&nbsp;**Total other comprehensive income/(loss), net of tax** | &nbsp;&nbsp; **697** | &nbsp;&nbsp; **44** | &nbsp;&nbsp; **(170)** | &nbsp;&nbsp; **365** | &nbsp;&nbsp; **80** | &nbsp;&nbsp; **182** |
| &nbsp;&nbsp;**Total comprehensive income for the period** | &nbsp;&nbsp; **7283** | &nbsp;&nbsp; **6070** | &nbsp;&nbsp; **5652** | &nbsp;&nbsp; **18339** | &nbsp;&nbsp; **16531** | &nbsp;&nbsp; **22328** |
| &nbsp;&nbsp;**Profit attributable to:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Owners of the company | &nbsp;&nbsp; 6586 | &nbsp;&nbsp; 6021 | &nbsp;&nbsp; 5809 | &nbsp;&nbsp; 17967 | &nbsp;&nbsp; 16425 | &nbsp;&nbsp; 22110 |
| &nbsp;&nbsp;Non-controlling interest | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 13 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 26 | &nbsp;&nbsp; 36 |
|  | &nbsp;&nbsp; **6586** | &nbsp;&nbsp; **6026** | &nbsp;&nbsp; **5822** | &nbsp;&nbsp; **17974** | &nbsp;&nbsp; **16451** | &nbsp;&nbsp; **22146** |
| &nbsp;&nbsp;**Total comprehensive income attributable to:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Owners of the company | &nbsp;&nbsp; 7268 | &nbsp;&nbsp; 6068 | &nbsp;&nbsp; 5640 | &nbsp;&nbsp; 18322 | &nbsp;&nbsp; 16506 | &nbsp;&nbsp; 22293 |
| &nbsp;&nbsp;Non-controlling interest | &nbsp;&nbsp; 15 | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 12 | &nbsp;&nbsp; 17 | &nbsp;&nbsp; 25 | &nbsp;&nbsp; 35 |
|  | &nbsp;&nbsp; **7283** | &nbsp;&nbsp; **6070** | &nbsp;&nbsp; **5652** | &nbsp;&nbsp; **18339** | &nbsp;&nbsp; **16531** | &nbsp;&nbsp; **22328** |
| &nbsp;&nbsp;Paid up share capital (par value ![](rupee-symbol.gif)5/- each, fully paid) | &nbsp;&nbsp; 2086 | &nbsp;&nbsp; 2099 | &nbsp;&nbsp; 2097 | &nbsp;&nbsp; 2086 | &nbsp;&nbsp; 2097 | &nbsp;&nbsp; 2098 |
| &nbsp;&nbsp;Other equity \*<sup>#</sup> | &nbsp;&nbsp; 73252 | &nbsp;&nbsp; 73252 | &nbsp;&nbsp; 74227 | &nbsp;&nbsp; 73252 | &nbsp;&nbsp; 74227 | &nbsp;&nbsp; 73252 |
| &nbsp;&nbsp;**Earnings per equity share (par value ![](rupee-symbol.gif)5/- each)\*\*** |  |  |  |  |  |  |
| &nbsp;&nbsp;Basic (![](rupee-symbol.gif)) | &nbsp;&nbsp; 15.72 | &nbsp;&nbsp; 14.35 | &nbsp;&nbsp; 13.86 | &nbsp;&nbsp; 42.85 | &nbsp;&nbsp; 38.96 | &nbsp;&nbsp; 52.52 |
| &nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) | &nbsp;&nbsp; 15.70 | &nbsp;&nbsp; 14.34 | &nbsp;&nbsp; 13.83 | &nbsp;&nbsp; 42.79 | &nbsp;&nbsp; 38.88 | &nbsp;&nbsp; 52.41 |

---

\* Balances for the quarter and nine months ended December 31, 2022 and quarter ended September 30, 2022 represents balances as per the audited Balance Sheet for the year ended March 31, 2022 and balances for the quarter and nine months ended December 31, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015

\*\* EPS is not annualized for the quarter and nine months ended December 31, 2022, quarter ended September 30, 2022 and quarter and nine months ended December 31, 2021.

<sup>#</sup> Excludes non-controlling interest

**1. Notes pertaining to the current quarter**

**a)** The audited interim condensed consolidated financial statements for the quarter and nine months ended December 31, 2022 have been taken on record by the Board of Directors at its meeting held on January 12, 2023. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed consolidated financial statements. These interim condensed consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter.

**b) Appointment of Independent Director**

Based on the recommendation of the Nomination and Remuneration Committee, the Board considered and approved the appointment of Govind Vaidiram Iyer (DIN - 00169343), as an Additional & Independent Director effective January 12, 2023 for a period of 5 (five) years, subject to the approval of shareholders.

**c) Buyback of equity shares**

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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis). The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023.

During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from general reserve and retained earnings. Subsequent to the quarter ended December 31, 2022, the Company additionally purchased 6,128,000 number of shares; total number of shares purchased till date is 31,292,000 amounting to ![](rupee-symbol.gif)4,790 crore excluding transactions costs and buyback tax.

**d) Update on employee stock grants**

The Board, on January 12, 2023, based on the recommendations of the Nomination and Remuneration Committee, approved :

i) The annual time-based stock incentives in the form of Restricted Stock Units (RSUs) to Salil Parekh, CEO & MD having a market value of ![](rupee-symbol.gif)3 crore as on the date of grant under the 2015 Stock Incentive Compensation Plan (2015 Plan) in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

ii) The annual time-based RSUs to a KMP having a market value of ![](rupee-symbol.gif)1.75 crore as on date of grant under 2015 plan, in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iii) The annual performance-based grant of RSUs to a KMP having a market value of ![](rupee-symbol.gif)0.92 crore as on the date of grant under the 2015 plan. These RSUs will vest 12 months from the date of the grant based on the achievement of certain performance targets. The RSUs will be granted w.e.f February 1, 2023 and the number of RSU's will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iv) The grant of 11,39,550 RSUs under the 2015 Plan and grant of 21,40,000 PSUs under the Expanded Stock Ownership Program 2019 (2019 Plan) to eligible employees. The grants made under the 2015 Plan would vest over a period of four years and the grants made under the 2019 Plan would vest over a period of three years subject to Company's achievement of performance parameters as defined in the 2019 Plan. The RSUs and PSUs will be granted w.e.f February 1, 2023 and the exercise price will be equal to the par value of the share."

**e)** We have initiated the closure of our branch in Moscow and this will be completed as per local regulations.

**2. Information on dividends for the quarter and nine months ended December 31, 2022**

The Board of Directors (in the meeting held on October 13, 2022) declared an interim dividend of ![](rupee-symbol.gif) 16.50/- per equity share. The record date for the payment was October 28, 2022 and the same was paid on November 10, 2022. The interim dividend declared in the previous year was ![](rupee-symbol.gif)15/- per equity share

*(in ![](rupee-symbol.gif))*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Quarter ended September 30,** | **Quarter ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Year ended March 31,** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **2022** | **2022** | **2021** | **2022** | **2021** | **2022** |
| &nbsp;&nbsp;**Dividend per share (par value ₹5/- each)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividend | *–* | 16.50 | *–* | 16.50 | 15.00 | 15.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Final dividend | *–* | *–* | *–* | *–* | *–* | 16.00 |

---

**3. Segment reporting (Consolidated - Audited)**

*(in ![](rupee-symbol.gif) crore)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp; **Quarter ended December 31,** | &nbsp;&nbsp; **Quarter ended September 30,** | &nbsp;&nbsp; **Quarter ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Year ended March 31,** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** |
| &nbsp;&nbsp;**Revenue by business segment** |  |  |  |  |  |  |
| &nbsp;&nbsp;Financial Services <sup>(1)</sup> | &nbsp;&nbsp; 11235 | &nbsp;&nbsp; 11148 | &nbsp;&nbsp; 10023 | &nbsp;&nbsp; 32945 | &nbsp;&nbsp;28805 | &nbsp;&nbsp; 38902 |
| &nbsp;&nbsp;Retail <sup>(2)</sup> | &nbsp;&nbsp; 5480 | &nbsp;&nbsp; 5183 | &nbsp;&nbsp; 4612 | &nbsp;&nbsp; 15667 | &nbsp;&nbsp; 13118 | &nbsp;&nbsp; 17734 |
| &nbsp;&nbsp;Communication <sup>(3)</sup> | &nbsp;&nbsp; 4710 | &nbsp;&nbsp; 4501 | &nbsp;&nbsp; 3979 | &nbsp;&nbsp; 13675 | &nbsp;&nbsp; 11050 | &nbsp;&nbsp; 15182 |
| &nbsp;&nbsp;Energy, Utilities, Resources and Services | &nbsp;&nbsp; 4957 | &nbsp;&nbsp; 4498 | &nbsp;&nbsp; 3740 | &nbsp;&nbsp; 13714 | &nbsp;&nbsp; 10611 | &nbsp;&nbsp; 14484 |
| &nbsp;&nbsp;Manufacturing | &nbsp;&nbsp; 5099 | &nbsp;&nbsp; 4686 | &nbsp;&nbsp; 3598 | &nbsp;&nbsp; 13957 | &nbsp;&nbsp; 9520 | &nbsp;&nbsp; 13336 |
| &nbsp;&nbsp;Hi-Tech | &nbsp;&nbsp; 3095 | &nbsp;&nbsp; 2971 | &nbsp;&nbsp; 2567 | &nbsp;&nbsp; 8878 | &nbsp;&nbsp; 7388 | &nbsp;&nbsp; 10036 |
| &nbsp;&nbsp;Life Sciences <sup>(4)</sup> | &nbsp;&nbsp; 2695 | &nbsp;&nbsp; 2452 | &nbsp;&nbsp; 2383 | &nbsp;&nbsp; 7404 | &nbsp;&nbsp; 6377 | &nbsp;&nbsp; 8517 |
| &nbsp;&nbsp;All other segments <sup>(5)</sup> | &nbsp;&nbsp; 1047 | &nbsp;&nbsp; 1099 | &nbsp;&nbsp; 965 | &nbsp;&nbsp; 3086 | &nbsp;&nbsp; 2496 | &nbsp;&nbsp; 3450 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **38318** | &nbsp;&nbsp; **36538** | &nbsp;&nbsp; **31867** | &nbsp;&nbsp; **109326** | &nbsp;&nbsp; **89365** | &nbsp;&nbsp; **121641** |
| &nbsp;&nbsp;**Less:** Inter-segment revenue | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* |
| &nbsp;&nbsp;**Net revenue from operations** | &nbsp;&nbsp; **38318** | &nbsp;&nbsp; **36538** | &nbsp;&nbsp; **31867** | &nbsp;&nbsp; **109326** | &nbsp;&nbsp; **89365** | &nbsp;&nbsp; **121641** |
| &nbsp;&nbsp;**Segment profit before tax, depreciation and non-controlling interests:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Financial Services <sup>(1)</sup> | &nbsp;&nbsp; 2678 | &nbsp;&nbsp; 2811 | &nbsp;&nbsp; 2734 | &nbsp;&nbsp; 8243 | &nbsp;&nbsp;7736 | &nbsp;&nbsp;10314 |
| &nbsp;&nbsp;Retail <sup>(2)</sup> | &nbsp;&nbsp; 1646 | &nbsp;&nbsp; 1578 | &nbsp;&nbsp; 1630 | &nbsp;&nbsp; 4761 | &nbsp;&nbsp;4615 | &nbsp;&nbsp;6130 |
| &nbsp;&nbsp;Communication <sup>(3)</sup> | &nbsp;&nbsp; 1042 | &nbsp;&nbsp; 965 | &nbsp;&nbsp; 963 | &nbsp;&nbsp; 2801 | &nbsp;&nbsp;2486 | &nbsp;&nbsp;3372 |
| &nbsp;&nbsp;Energy, Utilities , Resources and Services | &nbsp;&nbsp; 1457 | &nbsp;&nbsp; 1251 | &nbsp;&nbsp; 1075 | &nbsp;&nbsp; 3853 | &nbsp;&nbsp;3113 | &nbsp;&nbsp;4225 |
| &nbsp;&nbsp;Manufacturing | &nbsp;&nbsp; 1035 | &nbsp;&nbsp; 792 | &nbsp;&nbsp; 633 | &nbsp;&nbsp; 2212 | &nbsp;&nbsp;1982 | &nbsp;&nbsp;2408 |
| &nbsp;&nbsp;Hi-Tech | &nbsp;&nbsp; 813 | &nbsp;&nbsp; 724 | &nbsp;&nbsp; 636 | &nbsp;&nbsp; 2209 | &nbsp;&nbsp;1823 | &nbsp;&nbsp;2495 |
| &nbsp;&nbsp;Life Sciences <sup>(4)</sup> | &nbsp;&nbsp; 684 | &nbsp;&nbsp; 642 | &nbsp;&nbsp; 640 | &nbsp;&nbsp; 1861 | &nbsp;&nbsp;1799 | &nbsp;&nbsp;2380 |
| &nbsp;&nbsp;All other segments <sup>(5)</sup> | &nbsp;&nbsp; 12 | &nbsp;&nbsp; 139 | &nbsp;&nbsp; 72 | &nbsp;&nbsp; 192 | &nbsp;&nbsp;91 | &nbsp;&nbsp;167 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **9367** | &nbsp;&nbsp; **8902** | &nbsp;&nbsp; **8383** | &nbsp;&nbsp; **26132** | &nbsp;&nbsp; **23645** | &nbsp;&nbsp; **31491** |
| &nbsp;&nbsp;**Less:** Other Unallocable expenditure | &nbsp;&nbsp; 1125 | &nbsp;&nbsp; 1029 | &nbsp;&nbsp; 899 | &nbsp;&nbsp; 3104 | &nbsp;&nbsp;2586 | &nbsp;&nbsp;3476 |
| &nbsp;&nbsp;**Add:** Unallocable other income | &nbsp;&nbsp; 769 | &nbsp;&nbsp; 584 | &nbsp;&nbsp; 512 | &nbsp;&nbsp; 2030 | &nbsp;&nbsp;1658 | &nbsp;&nbsp;2295 |
| &nbsp;&nbsp;**Less:** Finance cost | &nbsp;&nbsp; 80 | &nbsp;&nbsp; 66 | &nbsp;&nbsp; 53 | &nbsp;&nbsp; 202 | &nbsp;&nbsp; 150 | &nbsp;&nbsp; 200 |
| &nbsp;&nbsp;**Profit before tax and non-controlling interests** | &nbsp;&nbsp; **8931** | &nbsp;&nbsp; **8391** | &nbsp;&nbsp; **7943** | &nbsp;&nbsp; **24856** | &nbsp;&nbsp; **22567** | &nbsp;&nbsp; **30110** |

---

<sup>(1)</sup> Financial Services include enterprises in Financial Services and Insurance

<sup>(2)</sup> Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

<sup>(3)</sup> Communication includes enterprises in Communication, Telecom OEM and Media

<sup>(4)</sup> Life Sciences includes enterprises in Life sciences and Health care

<sup>(5)</sup> All other segments include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services

**Notes on segment information**

**Business segments** 

Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker 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 these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.

**Segmental capital employed**

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 not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

**4. Audited financial results of Infosys Limited (Standalone Information)**

*(in ![](rupee-symbol.gif) crore)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Quarter ended September 30,** | **Quarter ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Year ended March 31,** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **2022** | **2022** | **2021** | **2022** | **2021** | **2022** |
| &nbsp;&nbsp;Revenue from operations | 32389 | 31567 | 27337 | 93483 | 76514 | 103940 |
| &nbsp;&nbsp;Profit before tax | 8295 | 8488 | 7789 | 23686 | 21585 | 28495 |
| &nbsp;&nbsp;Profit for the period | 6210 | 6253 | 5870 | 17364 | 16056 | 21235 |

---

The audited results of Infosys Limited for the above mentioned periods are available on our website, www.infosys.com and on the Stock Exchange website www.nseindia.com and www.bseindia.com. The information above has been extracted from the audited interim standalone condensed financial statements as stated.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;By order of the Board |
|  | &nbsp;&nbsp;for Infosys Limited<br>|
| &nbsp;&nbsp;Bengaluru, India | &nbsp;&nbsp;**Salil Parekh** |
| &nbsp;&nbsp;January 12, 2023 | &nbsp;&nbsp;*Chief Executive Officer and Managing Director* |

---

The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2022, prepared as per International Financial Reporting Standards (IFRS) and reported in US dollars. A summary of the financial statements is as follows:

*(in US$ million, except per equity share data)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Quarter ended September 30,** | **Quarter ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Year ended March 31,** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **2022** | **2022** | **2021** | **2022** | **2021** | **2022** |
|  | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** |
| &nbsp;&nbsp;Revenues | 4659 | 4555 | 4250 | 13657 | 12031 | 16311 |
| &nbsp;&nbsp;Cost of sales | 3230 | 3170 | 2856 | 9544 | 8041 | 10996 |
| &nbsp;&nbsp;**Gross profit** | **1429** | **1385** | **1394** | **4113** | **3990** | **5315** |
| &nbsp;&nbsp;Operating expenses | 428 | 406 | 396 | 1245 | 1155 | 1560 |
| &nbsp;&nbsp;**Operating profit** | **1001** | **979** | **998** | **2868** | **2835** | **3755** |
| &nbsp;&nbsp;Other income, net | 94 | 73 | 68 | 254 | 223 | 308 |
| &nbsp;&nbsp;Finance cost | 10 | 8 | 7 | 25 | 20 | 27 |
| &nbsp;&nbsp;**Profit before income taxes** | **1085** | **1044** | **1059** | **3097** | **3038** | **4036** |
| &nbsp;&nbsp;Income tax expense | 285 | 295 | 283 | 859 | 823 | 1068 |
| &nbsp;&nbsp;**Net profit** | **800** | **749** | **776** | **2238** | **2215** | **2968** |
| &nbsp;&nbsp;Earnings per equity share \* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 0.19 | 0.18 | 0.18 | 0.53 | 0.52 | 0.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 0.19 | 0.18 | 0.18 | 0.53 | 0.52 | 0.70 |
| &nbsp;&nbsp;Total assets | 15226 | 15640 | 14673 | 15226 | 14673 | 15555 |
| &nbsp;&nbsp;Cash and cash equivalents and current investments | 2456 | 3276 | 2703 | 2456 | 2703 | 3185 |

---

\* EPS is not annualized for the quarter and nine months ended December 31, 2022, quarter ended September 30, 2022 and quarter and nine months ended December 31, 2021.

This Release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that 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 'may', 'anticipate', 'believe', 'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could', 'would', 'should' and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2022. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

---

| | | |
|:---|:---|:---|
| ![](infosysnyn.gif) | &nbsp;&nbsp; Infosys Limited<br> Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | &nbsp;&nbsp; CIN : L85110KA1981PLC013115<br> Website: www.infosys.com<br> email: investors@infosys.com<br> T: 91 80 2852 0261, F: 91 80 2852 0362 |

---

**Statement of Audited Results of Infosys Limited for the quarter and nine months ended December 31, 2022 prepared in compliance with the Indian Accounting Standards (Ind-AS)**

*(in ![](rupee-symbol.gif) crore, except per equity share data)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Quarter ended<br> December 31,** | **Quarter ended September 30,** | **Quarter ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Year ended March 31,** |
|  | **2022** | **2022** | **2021** | **2022** | **2021** | **2022** |
|  | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** |
| &nbsp;&nbsp;Revenue from operations | 32389 | 31567 | 27337 | 93483 | 76514 | 103940 |
| &nbsp;&nbsp;Other income, net | 1177 | 1267 | 1013 | 3093 | 2634 | 3224 |
| &nbsp;&nbsp;**Total income** | **33566** | **32834** | **28350** | **96576** | **79148** | **107164** |
| &nbsp;&nbsp;**Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee benefit expenses | 16395 | 15873 | 13275 | 47182 | 38199 | 51664 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of technical sub-contractors | 4720 | 4815 | 4406 | 14545 | 11658 | 16298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Travel expenses | 284 | 293 | 195 | 892 | 453 | 731 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of software packages and others | 1728 | 1428 | 856 | 4339 | 2120 | 2985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Communication expenses | 132 | 135 | 102 | 386 | 312 | 433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consultancy and professional charges | 280 | 333 | 412 | 975 | 1087 | 1511 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortisation expense | 713 | 682 | 631 | 2039 | 1809 | 2429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance cost | 41 | 40 | 33 | 115 | 97 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 978 | 747 | 651 | 2417 | 1828 | 2490 |
| &nbsp;&nbsp;**Total expenses** | **25271** | **24346** | **20561** | **72890** | **57563** | **78669** |
| &nbsp;&nbsp;**Profit before tax** | **8295** | **8488** | **7789** | **23686** | **21585** | **28495** |
| &nbsp;&nbsp;Tax expense: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current tax | 1916 | 2312 | 1852 | 6261 | 5354 | 6960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | 169 | (77) | 67 | 61 | 175 | 300 |
| &nbsp;&nbsp;**Profit for the period** | **6210** | **6253** | **5870** | **17364** | **16056** | **21235** |
| &nbsp;&nbsp;**Other comprehensive income** |  |  |  |  |  |  |
| &nbsp;&nbsp;*Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of the net defined benefit liability / asset, net | 28 | 40 | (52) | (28) | (74) | (98) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity instruments through other comprehensive income, net | 2 | 4 | *–* | 9 | 41 | 97 |
| &nbsp;&nbsp;*Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedges, net | (57) | (12) | (7) | (43) | 4 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on investments, net | 42 | 27 | (67) | (275) | 23 | (39) |
| &nbsp;&nbsp;**Total other comprehensive income/ (loss), net of tax** | **15** | **59** | **(126)** | **(337)** | **(6)** | **(48)** |
| &nbsp;&nbsp;**Total comprehensive income for the period** | **6225** | **6312** | **5744** | **17027** | **16050** | **21187** |
| &nbsp;&nbsp;Paid-up share capital (par value ![](rupee-symbol.gif)5/- each fully paid) | 2091 | 2104 | 2102 | 2091 | 2102 | 2103 |
| &nbsp;&nbsp;Other Equity\* | 67203 | 67203 | 69401 | 67203 | 69401 | 67203 |
| &nbsp;&nbsp;**Earnings per equity share (par value ![](rupee-symbol.gif)5 /- each)\*\*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic (![](rupee-symbol.gif)) | 14.77 | 14.86 | 13.96 | 41.28 | 37.96 | 50.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) | 14.76 | 14.85 | 13.94 | 41.24 | 37.91 | 50.21 |

---

\* Balances for the quarter and nine months ended December 31, 2022 and quarter ended September 30, 2022 represents balances as per the audited Balance Sheet for the year ended March 31, 2022 and balances for the quarter and nine months ended December 31, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015.

\*\* EPS is not annualized for the quarter and nine months ended December 31, 2022, quarter ended September 30, 2022 and quarter and nine months ended December 31, 2021.

**1. Notes pertaining to the current quarter**

**a)** The audited interim condensed standalone financial statements for the quarter and nine months ended December 31, 2022 have been taken on record by the Board of Directors at its meeting held on January 12, 2023. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed standalone financial statements. These interim condensed standalone financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter.

**b) Appointment of Independent Director**

Based on the recommendation of the Nomination and Remuneration Committee, the Board considered and approved the appointment of Govind Vaidiram Iyer (DIN - 00169343), as an Additional & Independent Director effective January 12, 2023 for a period of 5 (five) years, subject to the approval of shareholders.

**c) Buyback of equity shares**

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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis). The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023.

During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from general reserve and retained earnings. Subsequent to the quarter ended December 31, 2022, the Company additionally purchased 6,128,000 number of shares; total number of shares purchased till date is 31,292,000 amounting to ![](rupee-symbol.gif)4,790 crore excluding transactions costs and buyback tax.

**d) Update on employee stock grants**

The Board, on January 12, 2023, based on the recommendations of the Nomination and Remuneration Committee, approved :

i) The annual time-based stock incentives in the form of Restricted Stock Units (RSUs) to Salil Parekh, CEO & MD having a market value of ![](rupee-symbol.gif)3 crore as on the date of grant under the 2015 Stock Incentive Compensation Plan (2015 Plan) in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

ii) The annual time-based RSUs to a KMP having a market value of ![](rupee-symbol.gif)1.75 crore as on date of grant under 2015 plan, in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iii) The annual performance-based grant of RSUs to a KMP having a market value of ![](rupee-symbol.gif)0.92 crore as on the date of grant under the 2015 plan. These RSUs will vest 12 months from the date of the grant based on the achievement of certain performance targets. The RSUs will be granted w.e.f February 1, 2023 and the number of RSU's will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iv) The grant of 11,39,550 RSUs under the 2015 Plan and grant of 21,40,000 PSUs under the Expanded Stock Ownership Program 2019 (2019 Plan) to eligible employees. The grants made under the 2015 Plan would vest over a period of four years and the grants made under the 2019 Plan would vest over a period of three years subject to Company's achievement of performance parameters as defined in the 2019 Plan. The RSUs and PSUs will be granted w.e.f February 1, 2023 and the exercise price will be equal to the par value of the share."

**e)** We have initiated the closure of our branch in Moscow and this will be completed as per local regulations.

**2. Information on dividends for the quarter and nine months ended December 31, 2022**

The Board of Directors (in the meeting held on October 13, 2022) declared an interim dividend of ![](rupee-symbol.gif) 16.50/- per equity share. The record date for the payment was October 28, 2022 and the same was paid on November 10, 2022. The interim dividend declared in the previous year was ![](rupee-symbol.gif)15/- per equity share

*(in ![](rupee-symbol.gif))*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Quarter ended September 30,** | **Quarter ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Year ended<br> March 31,** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **2022** | **2022** | **2021** | **2022** | **2021** | **2022** |
| &nbsp;&nbsp;**Dividend per share (par value ![](rupee-symbol.gif)5/- each)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interim dividend | *–* | 16.50 | *–* | 16.50 | 15.00 | 15.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Final dividend | *–* | *–* | *–* | *–* | *–* | 16.00 |

---

**3. Segment Reporting**

The Company publishes standalone financial statements along with the consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the audited interim condensed consolidated financial statements. Accordingly, the segment information is given in the audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2022.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;By order of the Board |
|  | &nbsp;&nbsp;for Infosys Limited<br>|
| &nbsp;&nbsp;Bengaluru, India | &nbsp;&nbsp;**Salil Parekh** |
| &nbsp;&nbsp;January 12, 2023 | &nbsp;&nbsp;*Chief Executive Officer and Managing Director* |

---

This Release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that 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 'may', 'anticipate', 'believe', 'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could', 'would', 'should' and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2022. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

---

| | | |
|:---|:---|:---|
| ![](infosysnyn.gif) | &nbsp;&nbsp; Infosys Limited<br> Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | &nbsp;&nbsp; CIN : L85110KA1981PLC013115<br> Website: www.infosys.com<br> email: investors@infosys.com<br> T: 91 80 2852 0261, F: 91 80 2852 0362 |

---

**Extract of the consolidated audited financial results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2022, prepared in compliance with the Indian Accounting Standards (Ind-AS)**

*(in ![](rupee-symbol.gif) crore except per equity share data)*

---

| | | | |
|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Nine months ended December 31,** | **Quarter ended December 31,** |
| **Particulars** | **2022** | **2022** | **2021** |
| Revenue from operations | 38318 | 109326 | 31867 |
| Profit before tax | 8931 | 24856 | 7943 |
| Profit for the period | 6586 | 17974 | 5822 |
| Total comprehensive income for the period (comprising profit for the period after tax and other comprehensive income after tax) | 7283 | 18339 | 5652 |
| Profit attributable to: |  |  |  |
| Owners of the Company | 6586 | 17967 | 5809 |
| Non-controlling interest |  | 7 | 13 |
|  | 6586 | 17974 | 5822 |
| Total comprehensive income attributable to: |  |  |  |
| Owners of the Company | 7268 | 18322 | 5640 |
| Non-controlling interest | 15 | 17 | 12 |
|  | 7283 | 18339 | 5652 |
| Paid-up share capital (par value ![](rupee-symbol.gif)5 each fully paid) | 2086 | 2086 | 2097 |
| Other equity \*# | 73252 | 73252 | 74227 |
| Earnings per equity share (par value ![](rupee-symbol.gif)5 each)\*\* |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic (![](rupee-symbol.gif)) | 15.72 | 42.85 | 13.86 |
| &nbsp;&nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) | 15.70 | 42.79 | 13.83 |

---

\* Balances for the quarter and nine months ended December 31, 2022 represents balances as per the audited Balance Sheet for the year ended March 31, 2022 and balances for the quarter ended December 31, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 as required by the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015

\*\* EPS is not annualized for the quarter and nine months ended December 31, 2022 and quarter ended December 31, 2021.

<sup>#</sup> Excludes non-controlling interest

**1. Notes pertaining to the current quarter**

**a)** The audited interim condensed consolidated financial statements for the quarter and nine months ended December 31, 2022 have been taken on record by the Board of Directors at its meeting held on January 12, 2023. The statutory auditors, Deloitte Haskins & Sells LLP, have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed consolidated financial statements. These interim condensed consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter.

**b) Appointment of Independent Director**

Based on the recommendation of the nomination and remuneration committee, the Board considered and approved the appointment of Govind Vaidiram Iyer (DIN - 00169343), as an Additional and Independent Director effective January 12, 2023 for a period of 5 (five) years, subject to the approval of shareholders.

**c) Buyback of equity shares**

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 declared on December 3, 2022. At the Maximum Buyback Price of ![](rupee-symbol.gif)1,850 per equity share and the Maximum Buyback Size of ![](rupee-symbol.gif)9,300 crore, the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum Buyback Shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis). The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023.

During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with Section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created a Capital Redemption Reserve of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from the general reserve and retained earnings. Subsequent to the quarter ended December 31, 2022, the Company additionally purchased 6,128,000 number of shares. The total number of shares purchased till date is 31,292,000 amounting to ![](rupee-symbol.gif)4,790 crore excluding transactions costs and buyback tax.

**d) Update on employee stock grants**

The Board, on January 12, 2023, based on the recommendations of the nomination and remuneration committee, approved :

&nbsp;&nbsp;&nbsp;&nbsp;i) The annual time-based stock incentives in the form of Restricted Stock Units (RSUs) to Salil
Parekh, CEO & MD, having a market value of ![](rupee-symbol.gif) 3 crore as on the date of grant under the 2015 Stock
Incentive Compensation Plan ("the 2015 Plan") in accordance with the terms of his employment agreement. The RSUs will vest
in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated
based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the
share.

ii) The annual time-based RSUs to a Key Managerial Personnel (KMP) having a market value of ![](rupee-symbol.gif)1.75 crore as on the date of grant under the 2015 Plan, in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iii) The annual performance-based grant of RSUs to a KMP having a market value of ![](rupee-symbol.gif)0.92 crore as on the date of grant under the 2015 Plan. These RSUs will vest 12 months from the date of the grant based on the achievement of certain performance targets. The RSUs will be granted w.e.f February 1, 2023 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2023. The exercise price of RSUs will be equal to the par value of the share.

iv) The grant of 11,39,550 RSUs under the 2015 Plan and grant of 21,40,000 PSUs under the Expanded Stock Ownership Program 2019 ("the 2019 Plan") to eligible employees. The grants made under the 2015 Plan would vest over a period of four years and the grants made under the 2019 Plan would vest over a period of three years subject to the Company's achievement of performance parameters as defined in the 2019 Plan. The RSUs and PSUs will be granted w.e.f February 1, 2023 and the exercise price will be equal to the par value of the share.

**e)** The Company has initiated the closure of the branch in Moscow and this will be completed as per local regulations.

**2. Information on dividends for the quarter and nine months ended December 31, 2022**

The Board of Directors (in meeting held on October 13, 2022) declared an interim dividend of ![](rupee-symbol.gif)16.50 per equity share. The record date for the payment was October 28, 2022, and the same was paid on November 10, 2022. The interim dividend declared in the previous year was ![](rupee-symbol.gif)15 per equity share

*(in ![](rupee-symbol.gif))*

---

| | | | |
|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Nine months ended December 31,** | **Quarter ended December 31,** |
| &nbsp;&nbsp;**Particulars** | **2022** | **2022** | **2021** |
| &nbsp;&nbsp;**Dividend per share (par value ![](rupee-symbol.gif)5 each)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interim dividend |  | 16.50 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Final dividend | – | – | – |

---

**3. Audited financial results of Infosys Limited (Standalone information)**

*(in ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| | **Quarter ended December 31,** | **Nine months ended December 31,** | **Quarter ended December 31,** |
| &nbsp;&nbsp;**Particulars** | **2022** | **2022** | **2021** |
| &nbsp;&nbsp;Revenue from operations | 32389 | 93483 | 27337 |
| &nbsp;&nbsp;Profit before tax | 8295 | 23686 | 7789 |
| &nbsp;&nbsp;Profit for the period | 6210 | 17364 | 5870 |

---

The above is an extract of the detailed format of the wuarterly audited financial results filed with the stock exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the quarterly audited financial results are available on the stock exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.infosys.com.

This release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("the Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that 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 'may', 'anticipate', 'believe', 'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could', 'would', 'should' and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our Capital Allocation Policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buyback of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2022. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;By order of the Board |
|  | &nbsp;&nbsp;for Infosys Limited<br>|
| &nbsp;&nbsp;Bengaluru, India | &nbsp;&nbsp;**Salil Parekh** |
| &nbsp;&nbsp;January 12, 2023 | &nbsp;&nbsp;Chief Executive Officer and Managing Director |

---

## Exhibit 99.7

**Exhibit 99.7**<br> **IFRS USD Earning Release**

**INDEPENDENT AUDITOR'S REPORT** 

**TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED**

**Report on the Audit of the Interim Condensed Consolidated Financial Statements**

**Opinion**

We have audited the accompanying interim condensed consolidated financial statements of **INFOSYS LIMITED** (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at December 31, 2022, the Condensed Consolidated Statement of Comprehensive Income for the three months and nine months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the nine months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed consolidated financial statements give a true and fair view in conformity with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") as issued by the International Accounting Standards Board ("IASB"), of the consolidated state of affairs of the Group as at December 31, 2022, the consolidated profit and consolidated total comprehensive income for the three months and nine months ended on that date, consolidated changes in equity and its consolidated cash flows for the nine months ended on that date.

**Basis for Opinion**

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

**Management's Responsibilities for the Interim Condensed Consolidated Financial Statements** 

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with IAS 34 as issued by the IASB. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records for safeguarding assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the interim condensed consolidated financial statements by the Directors of the Company, as aforesaid.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the interim condensed consolidated
financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal financial controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness
of the Company's internal financial controls.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the interim condensed consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure and content of the interim condensed consolidated
financial statements, including the disclosures, and whether the interim condensed consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
within the Group to express an opinion on the interim condensed consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities included in the interim condensed consolidated
financial statements of which we are the independent auditors.

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

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

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

---

| | |
|:---|:---|
| Place: Bengaluru<br> Date: January 12, 2023 | **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018)<br>**Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRYA2815 |

---

**INFOSYS LIMITED AND SUBSIDIARIES**

**Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in US Dollars for the three months and nine months ended December 31, 2022**

**Index**

Condensed Consolidated Balance Sheet

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Overview and Notes to the Interim Condensed Consolidated Financial Statements

**1. Overview**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Company overview

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Basis of preparation of financial statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Basis of consolidation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Use of estimates and judgments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Critical accounting estimates and judgements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 Recent accounting pronouncements

**2. Notes to the Interim Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Cash and cash equivalents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Prepayments and other assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Other liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Provisions and other contingencies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Property, plant and equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Leases

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Goodwill and intangible assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 Business combinations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 Employees' Stock Option Plans (ESOP)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Income taxes

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 Related party transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 Segment Reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 Revenue from Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 Unbilled revenue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 Equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 Break-up of expenses and other income, net

**Condensed Consolidated Balance Sheet**

*(Dollars in millions except equity share data)*

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Note** | &nbsp;&nbsp;**As at December 31, 2022** | &nbsp;&nbsp;**As at March 31, 2022** |
| &nbsp;&nbsp;**ASSETS** |  |  |  |
| &nbsp;&nbsp;**Current assets** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | &nbsp;&nbsp;2.1 | &nbsp;&nbsp; 1401 | &nbsp;&nbsp; 2305 |
| &nbsp;&nbsp;Current investments | &nbsp;&nbsp;2.2 | &nbsp;&nbsp; 1055 | &nbsp;&nbsp; 880 |
| &nbsp;&nbsp;Trade receivables |  | &nbsp;&nbsp; 3343 | &nbsp;&nbsp; 2995 |
| &nbsp;&nbsp;Unbilled revenue | &nbsp;&nbsp;2.17 | &nbsp;&nbsp; 1588 | &nbsp;&nbsp; 1526 |
| &nbsp;&nbsp;Prepayments and other current assets | &nbsp;&nbsp;2.4 | &nbsp;&nbsp; 1355 | &nbsp;&nbsp; 1133 |
| &nbsp;&nbsp;Income tax assets |  | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 7 |
| &nbsp;&nbsp;Derivative financial instruments | &nbsp;&nbsp;2.3 | &nbsp;&nbsp; 11 | &nbsp;&nbsp; 19 |
| &nbsp;&nbsp;**Total current assets** |  | &nbsp;&nbsp; **8753** | &nbsp;&nbsp; **8865** |
| &nbsp;&nbsp;**Non-current assets** |  |  |  |
| &nbsp;&nbsp;Property, plant and equipment | &nbsp;&nbsp;2.7 | &nbsp;&nbsp; 1622 | &nbsp;&nbsp; 1793 |
| &nbsp;&nbsp;Right-of-use assets | &nbsp;&nbsp;2.8 | &nbsp;&nbsp; 783 | &nbsp;&nbsp; 636 |
| &nbsp;&nbsp;Goodwill | &nbsp;&nbsp;2.9 | &nbsp;&nbsp; 876 | &nbsp;&nbsp; 817 |
| &nbsp;&nbsp;Intangible assets |  | &nbsp;&nbsp; 222 | &nbsp;&nbsp; 225 |
| &nbsp;&nbsp;Non-current investments | &nbsp;&nbsp;2.2 | &nbsp;&nbsp; 1497 | &nbsp;&nbsp; 1801 |
| &nbsp;&nbsp;Unbilled revenue | &nbsp;&nbsp;2.17 | &nbsp;&nbsp; 206 | &nbsp;&nbsp; 124 |
| &nbsp;&nbsp;Deferred income tax assets |  | &nbsp;&nbsp; 140 | &nbsp;&nbsp; 160 |
| &nbsp;&nbsp;Income tax assets |  | &nbsp;&nbsp; 764 | &nbsp;&nbsp; 805 |
| &nbsp;&nbsp;Other non-current assets | &nbsp;&nbsp;2.4 | &nbsp;&nbsp; 363 | &nbsp;&nbsp; 329 |
| &nbsp;&nbsp;**Total Non-current assets** |  | &nbsp;&nbsp; **6473** | &nbsp;&nbsp; **6690** |
| &nbsp;&nbsp;**Total assets** |  | &nbsp;&nbsp; **15226** | &nbsp;&nbsp; **15555** |
| &nbsp;&nbsp;**LIABILITIES AND EQUITY** |  |  |  |
| &nbsp;&nbsp;**Current liabilities** |  |  |  |
| &nbsp;&nbsp;Trade payables |  | &nbsp;&nbsp; 579 | &nbsp;&nbsp; 545 |
| &nbsp;&nbsp;Lease Liabilities | &nbsp;&nbsp;2.8 | &nbsp;&nbsp; 138 | &nbsp;&nbsp; 115 |
| &nbsp;&nbsp;Derivative financial instruments | &nbsp;&nbsp;2.3 | &nbsp;&nbsp; 27 | &nbsp;&nbsp; 8 |
| &nbsp;&nbsp;Current income tax liabilities |  | &nbsp;&nbsp; 383 | &nbsp;&nbsp; 344 |
| &nbsp;&nbsp;Unearned revenue |  | &nbsp;&nbsp; 861 | &nbsp;&nbsp; 834 |
| &nbsp;&nbsp;Employee benefit obligations |  | &nbsp;&nbsp; 290 | &nbsp;&nbsp; 288 |
| &nbsp;&nbsp;Provisions | &nbsp;&nbsp;2.6 | &nbsp;&nbsp; 171 | &nbsp;&nbsp; 129 |
| &nbsp;&nbsp;Other current liabilities | &nbsp;&nbsp;2.5 | &nbsp;&nbsp; 2532 | &nbsp;&nbsp; 2170 |
| &nbsp;&nbsp;**Total current liabilities** |  | &nbsp;&nbsp; **4981** | &nbsp;&nbsp; **4433** |
| &nbsp;&nbsp;**Non-current liabilities** |  |  |  |
| &nbsp;&nbsp;Lease liabilities | &nbsp;&nbsp;2.8 | &nbsp;&nbsp; 795 | &nbsp;&nbsp; 607 |
| &nbsp;&nbsp;Deferred income tax liabilities |  | &nbsp;&nbsp; 128 | &nbsp;&nbsp; 153 |
| &nbsp;&nbsp;Employee benefit obligations |  | &nbsp;&nbsp; 10 | &nbsp;&nbsp; 12 |
| &nbsp;&nbsp;Other non-current liabilities | &nbsp;&nbsp;2.5 | &nbsp;&nbsp; 286 | &nbsp;&nbsp; 356 |
| &nbsp;&nbsp;**Total Non-current liabilities** |  | &nbsp;&nbsp; **1219** | &nbsp;&nbsp; **1128** |
| &nbsp;&nbsp;**Total liabilities** |  | &nbsp;&nbsp; **6200** | &nbsp;&nbsp; **5561** |
| &nbsp;&nbsp;**Equity** |  |  |  |
| &nbsp;&nbsp;Share capital - ![](rupee-symbol.gif)5 ($0.16) par value 4,800,000,000 (4800000000) equity shares authorized, issued and outstanding 4,170,348,621 (4193012929) equity shares fully paid up, net of 12,568,222 (13725712) treasury shares as at December 31, 2022 and March 31, 2022 | &nbsp;&nbsp;2.18 | &nbsp;&nbsp; 327 | &nbsp;&nbsp; 328 |
| &nbsp;&nbsp;Share premium |  | &nbsp;&nbsp; 350 | &nbsp;&nbsp; 337 |
| &nbsp;&nbsp;Retained earnings |  | &nbsp;&nbsp; 11301 | &nbsp;&nbsp; 11672 |
| &nbsp;&nbsp;Cash flow hedge reserve |  | &nbsp;&nbsp; (4) | &nbsp;&nbsp; 1 |
| &nbsp;&nbsp;Other reserves |  | &nbsp;&nbsp; 1374 | &nbsp;&nbsp; 1170 |
| &nbsp;&nbsp;Capital redemption reserve |  | &nbsp;&nbsp; 22 | &nbsp;&nbsp; 21 |
| &nbsp;&nbsp;Other components of equity |  | &nbsp;&nbsp; (4395) | &nbsp;&nbsp; (3588) |
| &nbsp;&nbsp;**Total equity attributable to equity holders of the company** |  | &nbsp;&nbsp; **8975** | &nbsp;&nbsp; **9941** |
| &nbsp;&nbsp;Non-controlling interests |  | &nbsp;&nbsp; 51 | &nbsp;&nbsp; 53 |
| &nbsp;&nbsp;**Total equity** |  | &nbsp;&nbsp; **9026** | &nbsp;&nbsp; **9994** |
| &nbsp;&nbsp;**Total liabilities and equity** |  | &nbsp;&nbsp; **15226** | &nbsp;&nbsp; **15555** |

---

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

As per our report of even date attached.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; for Deloitte Haskins & Sells LLP<br>Chartered Accountants<br> Firm's Registration No :<br> 117366W/ W-100018<br>| &nbsp;&nbsp;*for and on behalf of the Board of Directors of Infosys Limited* |  |  |
| &nbsp;&nbsp; Sanjiv V. Pilgaonkar<br> Partner<br> Membership No. 039826 | &nbsp;&nbsp; Nandan M. Nilekani<br> *Chairman* | &nbsp;&nbsp; Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director*<br>| &nbsp;&nbsp; D. Sundaram<br> *Director* |
| &nbsp;&nbsp; <br> Bengaluru<br> January 12, 2023 | &nbsp;&nbsp; <br> Nilanjan Roy<br> *Chief Financial Officer* | &nbsp;&nbsp; <br> Jayesh Sanghrajka<br> *Executive Vice President and Deputy Chief Financial Officer* | &nbsp;&nbsp; <br> A.G.S. Manikantha<br> *Company Secretary* |

---

**Condensed Consolidated Statement of Comprehensive Income**

*(Dollars in millions except equity share and per equity share data)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Note** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Nine months ended** | &nbsp;&nbsp;**Nine months ended** |
|  |  | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;2.16 | &nbsp;&nbsp; **4659** | &nbsp;&nbsp; **4250** | &nbsp;&nbsp; **13657** | &nbsp;&nbsp; **12031** |
| &nbsp;&nbsp;Cost of sales | &nbsp;&nbsp;2.19 | &nbsp;&nbsp; 3230 | &nbsp;&nbsp; 2856 | &nbsp;&nbsp; 9544 | &nbsp;&nbsp; 8041 |
| &nbsp;&nbsp;**Gross profit** |  | &nbsp;&nbsp; **1429** | &nbsp;&nbsp; **1394** | &nbsp;&nbsp; **4113** | &nbsp;&nbsp; **3990** |
| &nbsp;&nbsp;**Operating expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | &nbsp;&nbsp;2.19 | &nbsp;&nbsp; 196 | &nbsp;&nbsp; 177 | &nbsp;&nbsp; 574 | &nbsp;&nbsp; 513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses | &nbsp;&nbsp;2.19 | &nbsp;&nbsp; 232 | &nbsp;&nbsp; 219 | &nbsp;&nbsp; 671 | &nbsp;&nbsp; 642 |
| &nbsp;&nbsp;Total operating expenses |  | &nbsp;&nbsp; **428** | &nbsp;&nbsp; **396** | &nbsp;&nbsp; **1245** | &nbsp;&nbsp; **1155** |
| &nbsp;&nbsp;**Operating profit** |  | &nbsp;&nbsp; **1001** | &nbsp;&nbsp; **998** | &nbsp;&nbsp; **2868** | &nbsp;&nbsp; **2835** |
| &nbsp;&nbsp;Other income, net | &nbsp;&nbsp;2.19 | &nbsp;&nbsp; 94 | &nbsp;&nbsp; 68 | &nbsp;&nbsp; 254 | &nbsp;&nbsp; 223 |
| &nbsp;&nbsp;Finance cost |  | &nbsp;&nbsp; 10 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 25 | &nbsp;&nbsp; 20 |
| &nbsp;&nbsp;**Profit before income taxes** |  | &nbsp;&nbsp; **1085** | &nbsp;&nbsp; **1059** | &nbsp;&nbsp; **3097** | &nbsp;&nbsp; **3038** |
| &nbsp;&nbsp;Income tax expense | &nbsp;&nbsp;2.12 | &nbsp;&nbsp; 285 | &nbsp;&nbsp; 283 | &nbsp;&nbsp; 859 | &nbsp;&nbsp; 823 |
| &nbsp;&nbsp;**Net profit** |  | &nbsp;&nbsp; **800** | &nbsp;&nbsp; **776** | &nbsp;&nbsp; **2238** | &nbsp;&nbsp; **2215** |
| &nbsp;&nbsp;**Other comprehensive income** |  |  |  |  |  |
| &nbsp;&nbsp;*Items that will not be reclassified subsequently to profit or loss:* |  |  |  |  |  |
| &nbsp;&nbsp;Re-measurements of the net defined benefit liability/asset, net |  | &nbsp;&nbsp; 4 | &nbsp;&nbsp; (7) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (9) |
| &nbsp;&nbsp;Equity instrument through other comprehensive income, net |  | &nbsp;&nbsp; (1) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (2) | &nbsp;&nbsp; 5 |
|  |  | &nbsp;&nbsp; 3 | &nbsp;&nbsp; (7) | &nbsp;&nbsp; (2) | &nbsp;&nbsp; (4) |
| &nbsp;&nbsp;*Items that will be reclassified subsequently to profit or loss:* |  |  |  |  |  |
| &nbsp;&nbsp;Fair value changes on investments, net |  | &nbsp;&nbsp; 6 | &nbsp;&nbsp; (10) | &nbsp;&nbsp; (34) | &nbsp;&nbsp; 2 |
| &nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedge, net |  | &nbsp;&nbsp; (7) | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (5) | &nbsp;&nbsp; *–* |
| &nbsp;&nbsp;Exchange differences on translation of foreign operations |  | &nbsp;&nbsp; (84) | &nbsp;&nbsp; (18) | &nbsp;&nbsp; (771) | &nbsp;&nbsp; (157) |
|  |  | &nbsp;&nbsp; (85) | &nbsp;&nbsp; (29) | &nbsp;&nbsp; (810) | &nbsp;&nbsp; (155) |
| &nbsp;&nbsp;**Total other comprehensive income/(loss), net of tax** |  | &nbsp;&nbsp; **(82)** | &nbsp;&nbsp; **(36)** | &nbsp;&nbsp; **(812)** | &nbsp;&nbsp; **(159)** |
| &nbsp;&nbsp;**Total comprehensive income** |  | &nbsp;&nbsp; **718** | &nbsp;&nbsp; **740** | &nbsp;&nbsp; **1426** | &nbsp;&nbsp; **2056** |
| &nbsp;&nbsp;**Profit attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;Owners of the company |  | &nbsp;&nbsp; 800 | &nbsp;&nbsp; 774 | &nbsp;&nbsp; 2237 | &nbsp;&nbsp; 2211 |
| &nbsp;&nbsp;Non-controlling interests |  | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 4 |
|  |  | &nbsp;&nbsp; **800** | &nbsp;&nbsp; **776** | &nbsp;&nbsp; **2238** | &nbsp;&nbsp; **2215** |
| &nbsp;&nbsp;**Total comprehensive income attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;Owners of the company |  | &nbsp;&nbsp; 718 | &nbsp;&nbsp; 738 | &nbsp;&nbsp; 1425 | &nbsp;&nbsp; 2052 |
| &nbsp;&nbsp;Non-controlling interests |  | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 4 |
|  |  | &nbsp;&nbsp; **718** | &nbsp;&nbsp; **740** | &nbsp;&nbsp; **1426** | &nbsp;&nbsp; **2056** |
| &nbsp;&nbsp;**Earnings per equity share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic ($) |  | &nbsp;&nbsp; 0.19 | &nbsp;&nbsp; 0.18 | &nbsp;&nbsp; 0.53 | &nbsp;&nbsp; 0.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted ($) |  | &nbsp;&nbsp; 0.19 | &nbsp;&nbsp; 0.18 | &nbsp;&nbsp; 0.53 | &nbsp;&nbsp; 0.52 |
| &nbsp;&nbsp;**Weighted average equity shares used in computing earnings per equity share** | &nbsp;&nbsp;2.13 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (in shares) |  | &nbsp;&nbsp; 4190550470 | &nbsp;&nbsp; 4190865711 | &nbsp;&nbsp; 4192969201 | &nbsp;&nbsp; 4215373286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (in shares) |  | &nbsp;&nbsp; 4195924920 | &nbsp;&nbsp; 4198923902 | &nbsp;&nbsp; 4199312062 | &nbsp;&nbsp; 4224009404 |

---

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

As per our report of even date attached.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; for Deloitte Haskins & Sells LLP<br>Chartered Accountants<br> Firm's Registration No :<br> 117366W/ W-100018<br>| &nbsp;&nbsp;*for and on behalf of the Board of Directors of Infosys Limited* |  |  |
| &nbsp;&nbsp; Sanjiv V. Pilgaonkar<br> Partner<br> Membership No. 039826<br>| &nbsp;&nbsp; Nandan M. Nilekani<br> *Chairman* | &nbsp;&nbsp; Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | &nbsp;&nbsp; D. Sundaram<br> *Director* |
| &nbsp;&nbsp; <br> Bengaluru<br> January 12, 2023 | &nbsp;&nbsp; <br> Nilanjan Roy<br> *Chief Financial Officer* | &nbsp;&nbsp; <br> Jayesh Sanghrajka<br> *Executive Vice President and Deputy Chief Financial Officer* | &nbsp;&nbsp; <br> A.G.S. Manikantha<br> *Company Secretary* |

---

**Condensed Consolidated Statement of Changes in Equity**

*(Dollars in millions except equity share data)*

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Number of Shares<sup>(1)</sup>** | **Share capital** | **Share premium** | **Retained earnings** | **Other reserves <sup>(2)</sup>** | **Capital redemption reserve** | **Cash flow hedge reserve** | **Other components of equity** | **Total equity attributable to equity holders of the company** | **Non-controlling interest** | **Total equity** |
| &nbsp;&nbsp;**Balance as at April 1, 2021** | **4245146114** | **332** | **359** | **12087** | **908** | **17** | **2** | **(3263)** | **10442** | **60** | **10502** |
| &nbsp;&nbsp;**Changes in equity for nine months ended December 31, 2021** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net profit | *–* | *–* | *–* | 2211 | *–* | *–* | *–* | *–* | 2211 | 4 | 2215 |
| &nbsp;&nbsp;Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (9) | (9) | *–* | (9) |
| &nbsp;&nbsp;Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 5 | 5 | *–* | 5 |
| &nbsp;&nbsp;Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 2 | 2 | *–* | 2 |
| &nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Exchange difference on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (157) | (157) | *–* | (157) |
| &nbsp;&nbsp;**Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** | **2211** |  ***–*** |  ***–*** |  ***–*** | **(159)** | **2052** | **4** | **2056** |
| &nbsp;&nbsp;Shares issued on exercise of employee stock options (Refer note 2.11) | 1824461 | *–* | 2 | *–* | *–* | *–* | *–* | *–* | 2 | *–* | 2 |
| &nbsp;&nbsp;Buyback of equity shares\*\* | (55807337) | (4) | (86) | (1409) | *–* | *–* | *–* | *–* | (1499) | *–* | (1499) |
| &nbsp;&nbsp;Transaction cost relating to buyback \* | *–* | *–* | *–* | (4) | *–* | *–* | *–* | *–* | (4) | *–* | (4) |
| &nbsp;&nbsp;Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | (4) | *–* | 4 | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Transfer from other reserves on utilization | *–* | *–* | *–* | 85 | (85) | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Transfer to other reserves | *–* | *–* | *–* | (302) | 302 | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Employee stock compensation expense (Refer note 2.11) | *–* | *–* | 38 | *–* | *–* | *–* | *–* | *–* | 38 | *–* | 38 |
| &nbsp;&nbsp;Income tax benefit arising on exercise of stock options | *–* | *–* | 3 | *–* | *–* | *–* | *–* | *–* | 3 | *–* | 3 |
| &nbsp;&nbsp;Dividends paid to non-controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (12) | (12) |
| &nbsp;&nbsp;Dividends<sup>#</sup> | *–* | *–* | *–* | (1699) | *–* | *–* | *–* | *–* | (1699) | *–* | (1699) |
| &nbsp;&nbsp;**Balance as at December 31, 2021** | **4191163238** | **328** | **316** | **10965** | **1125** | **21** | **2** | **(3422)** | **9335** | **52** | **9387** |

---

*(Dollars in millions except equity share data)*

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Number of Shares<sup>(1)</sup>** | **Share capital** | **Share premium** | **Retained earnings** | **Other reserves <sup>(2)</sup>** | **Capital redemption reserve** | **Cash flow hedge reserve** | **Other components of equity** | **Total equity attributable to equity holders of the company** | **Non-controlling interest** | **Total equity** |
| &nbsp;&nbsp;**Balance as at April 1, 2022** | **4193012929** | **328** | **337** | **11672** | **1170** | **21** | **1** | **(3588)** | **9941** | **53** | **9994** |
| &nbsp;&nbsp;**Impact on account of adoption of IAS 37<sup>##</sup>** |  ***–*** |  ***–*** |  ***–*** | **(2)** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **(2)** |  ***–*** | **(2)** |
|  | **4193012929** | **328** | **337** | **11670** | **1170** | **21** | **1** | **(3588)** | **9939** | **53** | **9992** |
| &nbsp;&nbsp;**Changes in equity for nine months ended December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net profit | *–* | *–* | *–* | 2237 | *–* | *–* | *–* | *–* | 2237 | 1 | 2238 |
| &nbsp;&nbsp;Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (2) | (2) | *–* | (2) |
| &nbsp;&nbsp;Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (34) | (34) | *–* | (34) |
| &nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | (5) | *–* | (5) | *–* | (5) |
| &nbsp;&nbsp;Exchange differences on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (771) | (771) | *–* | (771) |
| &nbsp;&nbsp;**Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** | **2237** |  ***–*** |  ***–*** | **(5)** | **(807)** | **1425** | **1** | **1426** |
| &nbsp;&nbsp;Shares issued on exercise of employee stock options (Refer to note 2.11) | 2499692 | *–* | 3 | *–* | *–* | *–* | *–* | *–* | 3 | *–* | 3 |
| &nbsp;&nbsp;Buyback of equity shares (Refer to note 2.18)\*\* | (25164000) | (1) | (40) | (704) | *–* | *–* | *–* | *–* | (745) | *–* | (745) |
| &nbsp;&nbsp;Transaction cost relating to buyback \* | *–* | *–* | (3) | *–* | *–* | *–* | *–* | *–* | (3) | *–* | (3) |
| &nbsp;&nbsp;Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | (1) | *–* | 1 | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Transfer from other reserves on utilization | *–* | *–* | *–* | 108 | (108) | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Transfer to other reserves | *–* | *–* | *–* | (312) | 312 | *–* | *–* | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;Employee stock compensation expense (Refer to note 2.11) | *–* | *–* | 48 | *–* | *–* | *–* | *–* | *–* | 48 | *–* | 48 |
| &nbsp;&nbsp;Income tax benefit arising on exercise of stock options | *–* | *–* | 5 | *–* | *–* | *–* | *–* | *–* | 5 | *–* | 5 |
| &nbsp;&nbsp;Dividends paid to non-controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (3) | (3) |
| &nbsp;&nbsp;Dividends<sup>#</sup> | *–* | *–* | *–* | (1697) | *–* | *–* | *–* | *–* | (1697) | *–* | (1697) |
| &nbsp;&nbsp;**Balance as at December 31, 2022** | **4170348621** | **327** | **350** | **11301** | **1374** | **22** | **(4)** | **(4395)** | **8975** | **51** | **9026** |

---

\* net of tax

\*\* including tax on buyback $141 million and $256 million for the nine months ended December 31, 2022 and December 31, 2021 respectively.

# net of treasury shares

## Impact on account of adoption of amendment to IAS 37 Provisions, Contingent Liabilities and Contingents Assets

<sup>(1)</sup> excludes treasury shares of 12,568,222 as at December 31, 2022, 13,725,712 as at April 1, 2022, 14,454,720 as at December 31, 2021 and 15,514,732 as at April 1, 2021, held by consolidated trust.

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

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

As per our report of even date attached.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; for Deloitte Haskins & Sells LLP<br>Chartered Accountants<br> Firm's Registration No :<br> 117366W/ W-100018<br>| &nbsp;&nbsp;*for and on behalf of the Board of Directors of Infosys Limited* |  |  |
| &nbsp;&nbsp; Sanjiv V. Pilgaonkar<br> Partner<br> Membership No. 039826 | &nbsp;&nbsp; Nandan M. Nilekani<br> *Chairman* | &nbsp;&nbsp; Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director*<br>| &nbsp;&nbsp; D. Sundaram<br> *Director* |
| &nbsp;&nbsp; <br> Bengaluru<br> January 12, 2023 | &nbsp;&nbsp; <br> Nilanjan Roy<br> *Chief Financial Officer* | &nbsp;&nbsp; <br> Jayesh Sanghrajka<br> *Executive Vice President and Deputy Chief Financial Officer* | &nbsp;&nbsp; <br> A.G.S. Manikantha<br> *Company Secretary* |

---

**Condensed Consolidated Statement of Cash Flows**

**Accounting Policy**

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

*(Dollars in millions)*

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Note** | **Nine months ended** | **Nine months ended** |
|  |  | **December 31, 2022** | **December 31, 2021** |
| &nbsp;&nbsp;**Operating activities:** |  |  |  |
| &nbsp;&nbsp;Net Profit |  | 2238 | 2215 |
| &nbsp;&nbsp;**Adjustments to reconcile net profit to net cash provided by operating activities:** |  |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 2.19 | 388 | 348 |
| &nbsp;&nbsp;Interest and dividend income |  | (105) | (77) |
| &nbsp;&nbsp;Finance Cost |  | 25 | 20 |
| &nbsp;&nbsp;Income tax expense | 2.12 | 859 | 823 |
| &nbsp;&nbsp;Exchange differences on translation of assets and liabilities, net |  | 47 | 5 |
| &nbsp;&nbsp;Impairment loss under expected credit loss model |  | 25 | 19 |
| &nbsp;&nbsp;Stock compensation expense | 2.11 | 48 | 41 |
| &nbsp;&nbsp;Other adjustments |  | 84 | 19 |
| &nbsp;&nbsp;**Changes in working capital** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and unbilled revenue |  | (915) | (817) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other assets |  | (311) | (159) |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade payables |  | 80 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue |  | 98 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities and provisions |  | 308 | 408 |
| &nbsp;&nbsp;**Cash generated from operations** |  | **2869** | **3277** |
| &nbsp;&nbsp;Income taxes paid |  | (824) | (777) |
| &nbsp;&nbsp;**Net cash generated by operating activities** |  | **2045** | **2500** |
| &nbsp;&nbsp;**Investing activities:** |  |  |  |
| &nbsp;&nbsp;Expenditure on property, plant and equipment and intangibles |  | (224) | (206) |
| &nbsp;&nbsp;Deposits placed with corporation |  | (113) | (106) |
| &nbsp;&nbsp;Redemption of deposits placed with corporations |  | 84 | 85 |
| &nbsp;&nbsp;Interest and dividend received |  | 97 | 84 |
| &nbsp;&nbsp;Payment towards acquisition of business, net of cash acquired |  | (113) | *–* |
| &nbsp;&nbsp;Payment of contingent consideration pertaining to acquisition of business |  | (8) | (7) |
| &nbsp;&nbsp;Escrow and other deposits pertaining to Buyback |  | (72) | (57) |
| &nbsp;&nbsp;Redemption of escrow and other deposits pertaining to Buyback |  | *–* | 57 |
| &nbsp;&nbsp;Payments to acquire Investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual funds and fixed maturity plan securities |  | (6793) | (5356) |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposits |  | (846) | (198) |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities |  | (228) | (473) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial papers |  | (291) | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Investments |  | (2) | (3) |
| &nbsp;&nbsp;Proceeds on sale of Investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities |  | 273 | 474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities |  | 12 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposits |  | 947 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial papers |  | 162 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual funds |  | 6666 | 5236 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Investments |  | *–* | 1 |
| &nbsp;&nbsp;Other payments |  | *–* | (3) |
| &nbsp;&nbsp;Other receipts |  | 7 | 7 |
| &nbsp;&nbsp;**Net cash (used)/generated in investing activities** |  | **(442)** | **(398)** |
| &nbsp;&nbsp;**Financing activities:** |  |  |  |
| &nbsp;&nbsp;Payment of Lease Liabilities |  | (107) | (86) |
| &nbsp;&nbsp;Payment of dividends |  | (1697) | (1703) |
| &nbsp;&nbsp;Payment of dividend to non-controlling interests of subsidiary |  | (3) | (11) |
| &nbsp;&nbsp;Shares issued on exercise of employee stock options |  | 3 | 2 |
| &nbsp;&nbsp;Other payments |  | (45) | (3) |
| &nbsp;&nbsp;Other receipts |  | 15 | 28 |
| &nbsp;&nbsp;Buy back of equity shares including transaction costs and tax on buyback |  | (475) | (1503) |
| &nbsp;&nbsp;**Net cash used in financing activities** |  | **(2309)** | **(3276)** |
| &nbsp;&nbsp;Net increase / (decrease) in cash and cash equivalents |  | (706) | (1174) |
| &nbsp;&nbsp;Effect of exchange rate changes on cash and cash equivalents |  | (198) | (61) |
| &nbsp;&nbsp;Cash and cash equivalents at the beginning of the period | 2.1 | 2305 | 3380 |
| &nbsp;&nbsp;**Cash and cash equivalents at the end of the period** | 2.1 | **1401** | **2145** |
| &nbsp;&nbsp;**Supplementary information:** |  |  |  |
| &nbsp;&nbsp;Restricted cash balance | 2.1 | 46 | 66 |

---

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

As per our report of even date attached.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; for Deloitte Haskins & Sells LLP<br>Chartered Accountants<br> Firm's Registration No :<br> 117366W/ W-100018<br>| &nbsp;&nbsp;*for and on behalf of the Board of Directors of Infosys Limited* |  |  |
| &nbsp;&nbsp; Sanjiv V. Pilgaonkar<br> Partner<br> Membership No. 039826 | &nbsp;&nbsp; Nandan M. Nilekani<br> *Chairman* | &nbsp;&nbsp; Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director*<br>| &nbsp;&nbsp; D. Sundaram<br> *Director* |
| &nbsp;&nbsp; <br> Bengaluru<br> January 12, 2023 | &nbsp;&nbsp; <br> Nilanjan Roy<br> *Chief Financial Officer* | &nbsp;&nbsp; <br> Jayesh Sanghrajka<br> *Executive Vice President and Deputy Chief Financial Officer* | &nbsp;&nbsp; <br> A.G.S. Manikantha<br> *Company Secretary* |

---

**Overview and Notes to the Interim Condensed Consolidated Financial Statements**

**1. Overview**

**1.1 Company overview** 

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

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

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

The Group's interim condensed consolidated financial statements are approved for issue by the company's Board of Directors on January 12, 2023.

**1.2 Basis of preparation of financial statements** 

The interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on the accrual basis except for certain financial instruments which have been measured at fair values. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the company's Annual Report on Form 20-F for the year ended March 31, 2022. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

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

**1.3 Basis of consolidation** 

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

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

**1.4 Use of estimates and judgments**

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

**1.5 Critical accounting estimates and judgements**

**a. Revenue recognition**

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

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

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

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

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

**b. Income taxes**

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

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

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

**c. Business combinations and intangible assets**

Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management. (Refer to note 2.10)

**d. Property, plant and equipment** 

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

**e. Impairment of Goodwill**

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

The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins (Refer to note 2.9).

**1.6 Recent accounting pronouncements** 

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

---

| | |
|:---|:---|
| &nbsp;&nbsp; Amendments to IAS 8, Accounting Policies, Changes in<br> Accounting Estimates and Errors | Definition of Accounting Estimates<br>|
| &nbsp;&nbsp;Amendments to IAS 1, Presentation of Financial Statements | Disclosure of Accounting Policies |
| &nbsp;&nbsp; Amendments to IAS12, Income taxes | Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
| &nbsp;&nbsp; Amendments to IFRS 16, Leases | Lease Liability in a Sale and Leaseback<br>|

---

**Amendments to IAS 8**

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

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

**Amendments to IAS 1**

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

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

**Amendments to IAS 12**

On May 7, 2021, International Accounting Standards Board (IASB) has issued amendment to IAS 12 Income Taxes which narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

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

**Amendments to IFRS 16**

On September 22, 2022, International Accounting Standards Board (IASB) has issued amendments to IFRS 16 Leases, which added requirements explaining the subsequent measurement for a sale and leaseback transaction. These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction.

The effective date for the adoption of this amendment is annual reporting periods beginning on or after January 1, 2024, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its condensed consolidated financial statements.

**2. Notes to the Interim Condensed Consolidated Financial Statements**

**2.1 Cash and cash equivalents**

Cash and cash equivalents consist of the following:

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **December 31, 2022** | **March 31, 2022** |
| &nbsp;&nbsp;Cash and bank deposits | 1130 | 1840 |
| &nbsp;&nbsp;Deposits with financial institutions | 271 | 465 |
| &nbsp;&nbsp;**Total Cash and cash equivalents** | **1401** | **2305** |

---

Cash and cash equivalents as at December 31, 2022 and March 31, 2022 include restricted cash and bank balances of $46 million and $62 million, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company and bank balances held as margin money deposits against guarantees.

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

**2.2 Investments**

The carrying value of investments are as follows:

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **December 31, 2022** | **March 31, 2022** |
| &nbsp;&nbsp;**(i) Current investments** |  |  |
| &nbsp;&nbsp;**Amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Quoted debt securities | 43 | 29 |
| &nbsp;&nbsp;**Fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid Mutual fund units | 382 | 266 |
| &nbsp;&nbsp;**Fair Value through Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 167 | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposits | 334 | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Paper | 129 | *–* |
| &nbsp;&nbsp;**Total current investments** | **1055** | **880** |
| &nbsp;&nbsp;**(ii) Non-current investments** |  |  |
| &nbsp;&nbsp;**Amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 212 | 251 |
| &nbsp;&nbsp;**Fair value through Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 1240 | 1501 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted equity and preference securities | 26 | 26 |
| &nbsp;&nbsp;**Fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted Preference securities | *–* | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted Compulsorily convertible debentures | *–* | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others<sup>(1)</sup> | 19 | 19 |
| &nbsp;&nbsp;**Total Non-current investments** | **1497** | **1801** |
| &nbsp;&nbsp;**Total investments** | **2552** | **2681** |
| &nbsp;&nbsp;Investment carried at amortized cost | 255 | 280 |
| &nbsp;&nbsp;Investments carried at fair value through other comprehensive income | 1896 | 2112 |
| &nbsp;&nbsp;Investments carried at fair value through profit or loss | 401 | 289 |

---

<sup>(1)</sup> Uncalled capital commitments outstanding as on December 31, 2022 and March 31, 2022 was $11 million and $4 million, respectively.

Refer note 2.3 for accounting policies on financial instruments.

---

| | |
|:---|:---|
| **Method of fair valuation:** | (Dollars in millions) |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Class of investment** | **Method** | **Fair value** | **Fair value** |
|  |  | **As at December 31, 2022** | **As at March 31, 2022** |
| &nbsp;&nbsp;Liquid mutual fund units | Quoted price | 382 | 266 |
| &nbsp;&nbsp;Quoted debt securities- carried at amortized cost | Quoted price and market observable inputs | 280 | 323 |
| &nbsp;&nbsp;Quoted debt securities- carried at Fair value through other comprehensive income | Quoted price and market observable inputs | 1407 | 1634 |
| &nbsp;&nbsp;Commercial Paper | Market observable inputs | 129 | *–* |
| &nbsp;&nbsp;Certificate of deposits | Market observable inputs | 334 | 452 |
| &nbsp;&nbsp;Unquoted equity and preference securities carried at fair value through other comprehensive income | Discounted cash flows method, Market multiples method, Option pricing model | 26 | 26 |
| &nbsp;&nbsp;Unquoted equity and preference securities - carried at fair value through profit or loss | Discounted cash flows method, Market multiples method, Option pricing model | *–* | 3 |
| &nbsp;&nbsp;Unquoted compulsorily convertible debentures - carried at fair value through profit or loss | Discounted cash flows method | *–* | 1 |
| &nbsp;&nbsp;Others | Discounted cash flows method, Market multiples method, Option pricing model | 19 | 19 |
| &nbsp;&nbsp;**Total** |  | **2577** | **2724** |

---

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

**2.3 Financial instruments**

**Accounting Policy**

**2.3.1 Initial recognition**

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

**2.3.2 Subsequent measurement**

**a. Non-derivative financial instruments** 

***(i) Financial assets carried at amortized cost***

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

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

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

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

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

***(iv) Financial liabilities***

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss.

**b. Derivative financial instruments**

The group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for 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 constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability carried at fair value through profit or loss.

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

***(ii) Cash flow hedge***

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

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

**2.3.3 Derecognition of financial instruments**

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

**2.3.4 Fair value of financial instruments**

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

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

**2.3.5 Impairment** 

The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in condensed consolidated statement of comprehensive income.

**Financial instruments by category** 

The carrying value and fair value of financial instruments by categories as at December 31, 2022 were as follows:

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Amortized <br> cost** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/liabilities at fair value through OCI** | **Financial assets/liabilities at fair value through OCI** | **Total carrying value** | **Total fair value** |
|  |  | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** |  |  |
| &nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents (Refer to note 2.1) | 1401 | *–* | *–* | *–* | *–* | 1401 | 1401 |
| &nbsp;&nbsp;Investments (Refer to Note 2.2) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 382 | *–* | *–* | 382 | 382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 255 | *–* | *–* | *–* | 1407 | 1662 | 1687 <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposits | *–* | *–* | *–* | *–* | 334 | 334 | 334 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Paper | *–* | *–* | *–* | *–* | 129 | 129 | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted equity and preference securities | *–* | *–* | *–* | 26 | *–* | 26 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted investment others | *–* | *–* | 19 | *–* | *–* | 19 | 19 |
| &nbsp;&nbsp;Trade receivables | 3343 | *–* | *–* | *–* | *–* | 3343 | 3343 |
| &nbsp;&nbsp;Unbilled revenues (Refer to note 2.17)<sup>(3)</sup> | 990 | *–* | *–* | *–* | *–* | 990 | 990 |
| &nbsp;&nbsp;Prepayments and other assets (Refer to Note 2.4) | 650 | *–* | *–* | *–* | *–* | 650 | 642 <sup>(2)</sup> |
| &nbsp;&nbsp;Derivative financial instruments | *–* | *–* | 9 | *–* | 2 | 11 | 11 |
| &nbsp;&nbsp;**Total** | **6639** |  ***–*** | **410** | **26** | **1872** | **8947** | **8964** |
| &nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Trade payables | 579 | *–* | *–* | *–* | *–* | 579 | 579 |
| &nbsp;&nbsp;Lease liabilities | 933 | *–* | *–* | *–* | *–* | 933 | 933 |
| &nbsp;&nbsp;Derivative financial instruments | *–* | *–* | 23 | *–* | 4 | 27 | 27 |
| &nbsp;&nbsp;Financial liability under option arrangements (Refer to note 2.5) | *–* | *–* | 81 | *–* | *–* | 81 | 81 |
| &nbsp;&nbsp;Other liabilities including contingent consideration (Refer to note 2.5) | 2170 | *–* | 11 | *–* | *–* | 2181 | 2181 |
| &nbsp;&nbsp;**Total** | **3682** | *–* | **115** |  ***–*** | **4** | **3801** | **3801** |

---

<sup>(1)</sup> On account of fair value changes including interest accrued

<sup>(2)</sup> Excludes interest accrued on quoted debt securities carried at amortized cost of $8 million.

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

The carrying value and fair value of financial instruments by categories as at March 31, 2022 were as follows:

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Amortized <br> cost** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/liabilities at fair value through OCI** | **Financial assets/liabilities at fair value through OCI** | **Total carrying value** | **Total fair value** |
|  |  | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** |  |  |
| &nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents (Refer to Note 2.1) | 2305 | *–* | *–* | *–* | *–* | 2305 | 2305 |
| &nbsp;&nbsp;Investments (Refer note 2.2) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 266 | *–* | *–* | 266 | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 280 | *–* | *–* | *–* | 1634 | 1914 | 1957 <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposits | *–* | *–* | *–* | *–* | 452 | 452 | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unquoted Compulsorily convertible<br> Debentures | *–* | *–* | 1 | *–* | *–* | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unquoted equity and preference<br> Securities | *–* | *–* | 3 | 26 | *–* | 29 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unquoted investment others | *–* | *–* | 19 | *–* | *–* | 19 | 19 |
| &nbsp;&nbsp;Trade receivables | 2995 | *–* | *–* | *–* | *–* | 2995 | 2995 |
| &nbsp;&nbsp;Unbilled revenues(Refer to Note 2.17)<sup>(3)</sup> | 838 | *–* | *–* | *–* | *–* | 838 | 838 |
| &nbsp;&nbsp;Prepayments and other assets (Refer to Note 2.4) | 526 | *–* | *–* | *–* | *–* | 526 | 514 <sup>(2)</sup> |
| &nbsp;&nbsp;Derivative financial instruments | *–* | *–* | 16 | *–* | 3 | 19 | 19 |
| &nbsp;&nbsp;**Total** | **6944** |  ***–*** | **305** | **26** | **2089** | **9364** | **9395** |
| &nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Trade payables | 545 | *–* | *–* | *–* | *–* | 545 | 545 |
| &nbsp;&nbsp;Lease liabilities | 722 | *–* | *–* | *–* | *–* | 722 | 722 |
| &nbsp;&nbsp;Derivative financial instruments | *–* | *–* | 8 | *–* | *–* | 8 | 8 |
| &nbsp;&nbsp;Financial liability under option arrangements (Refer to note 2.5) | *–* | *–* | 86 | *–* | *–* | 86 | 86 |
| &nbsp;&nbsp;Other liabilities including contingent consideration (Refer to note 2.5) | 1989 | *–* | 16 | *–* | *–* | 2005 | 2005 |
| &nbsp;&nbsp;**Total** | **3256** |  ***–*** | **110** |  ***–*** |  ***–*** | **3366** | **3366** |

---

<sup>(1)</sup> On account of fair value changes including interest accrued

<sup>(2)</sup> Excludes interest accrued on quoted debt securities carried at amortized cost of $12 million.

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

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

**Fair value hierarchy**

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

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

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

The following table presents fair value hierarchy of assets and liabilities as at December 31, 2022

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **As at December 31, 2022** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
|  |  | **Level 1** | **Level 2** | **Level 3** |
| &nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;Investments in liquid mutual fund units (Refer to Note 2.2) | 382 | 382 | *–* | *–* |
| &nbsp;&nbsp;Investments in quoted debt securities (Refer to Note 2.2) | 1687 | 1274 | 413 | *–* |
| &nbsp;&nbsp;Investments in certificate of deposit (Refer to Note 2.2) | 334 | *–* | 334 | *–* |
| &nbsp;&nbsp;Investments in commercial paper (Refer to Note 2.2) | 129 | *–* | 129 | *–* |
| &nbsp;&nbsp;Investments in unquoted equity and preference securities (Refer to Note 2.2) | 26 | *–* | *–* | 26 |
| &nbsp;&nbsp;Investments in unquoted investments others (Refer to Note 2.2) | 19 | *–* | *–* | 19 |
| &nbsp;&nbsp;Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts | 11 | *–* | 11 | *–* |
| &nbsp;&nbsp;**Liabilities** |  |  |  |  |
| &nbsp;&nbsp;Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts | 27 | *–* | 27 | *–* |
| &nbsp;&nbsp;Financial liability under option arrangements | 81 | *–* | *–* | 81 |
| &nbsp;&nbsp;Liability towards contingent consideration (Refer to note 2.5)\* | 11 | *–* | *–* | 11 |

---

\* Discount rate pertaining to contingent consideration ranges from 9 % to 14 %

During the nine months ended December 31, 2022, quoted debt securities of $118 million were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of $325 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2022

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **As at March 31, 2022** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
|  |  | **Level 1** | **Level 2** | **Level 3** |
| &nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;Investments in liquid mutual fund units (Refer to Note 2.2) | 266 | 266 | *–* | *–* |
| &nbsp;&nbsp;Investments in quoted debt securities (Refer to Note 2.2) | 1957 | 1721 | 236 | *–* |
| &nbsp;&nbsp;Investments in unquoted equity and preference securities (Refer to Note 2.2) | 29 | *–* | *–* | 29 |
| &nbsp;&nbsp;Investments in certificate of deposit (Refer to Note 2.2) | 452 | *–* | 452 | *–* |
| &nbsp;&nbsp;Investments in unquoted investments others (Refer to Note 2.2) | 19 | *–* | *–* | 19 |
| &nbsp;&nbsp;Investments in unquoted compulsorily convertible debentures (Refer to Note 2.2) | 1 | *–* | *–* | 1 |
| &nbsp;&nbsp;Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts | 19 | *–* | 19 | *–* |
| &nbsp;&nbsp;**Liabilities** |  |  |  |  |
| &nbsp;&nbsp;Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts | 8 | *–* | 8 | *–* |
| &nbsp;&nbsp;Financial liability under option arrangements (Refer to Note 2.5) | 86 | *–* | *–* | 86 |
| &nbsp;&nbsp;Liability towards contingent consideration (Refer to Note 2.5)\* | 16 | *–* | *–* | 16 |

---

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

During the year ended March 31, 2022 quoted debt securities of $76 million were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of $127 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, quoted debt securities, certificates of deposit, commercial paper, quoted bonds issued by government and quasi government organizations. The Group invests after considering counterparty risks based on multiple criteria including Tier I Capital, Capital Adequacy Ratio, credit rating, profitability, NPA levels and deposit base of banks and financial institutions. These risks are monitored regularly as per Group's risk management program.

**2.4 Prepayments and other assets**

Prepayments and other assets consist of the following:

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **December 31, 2022** | **March 31, 2022** |
| &nbsp;&nbsp;**Current** |  |  |
| &nbsp;&nbsp;Rental deposits | 5 | 8 |
| &nbsp;&nbsp;Security deposits | 1 | 1 |
| &nbsp;&nbsp;Loans to employees | 34 | 33 |
| &nbsp;&nbsp;Prepaid expenses<sup>(1)</sup> | 337 | 263 |
| &nbsp;&nbsp;Interest accrued and not due | 46 | 48 |
| &nbsp;&nbsp;Withholding taxes and others<sup>(1)</sup> | 352 | 256 |
| &nbsp;&nbsp;Advance payments to vendors for supply of goods<sup>(1)</sup> | 11 | 25 |
| &nbsp;&nbsp;Deposit with corporations | 284 | 287 |
| &nbsp;&nbsp;Escrow and other deposits pertaining to buyback (Refer to Note No 2.18.1)\*\* | 72 | *–* |
| &nbsp;&nbsp;Deferred contract cost<sup>(1)(#)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 115 | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 20 | 12 |
| &nbsp;&nbsp;Net investment in sublease of right of use asset | 6 | 6 |
| &nbsp;&nbsp;Other non financial assets<sup>(1)</sup> | 41 | 43 |
| &nbsp;&nbsp;Other financial assets | 31 | 38 |
| &nbsp;&nbsp;**Total Current prepayment and other assets** | **1355** | **1133** |
| &nbsp;&nbsp;**Non-current** |  |  |
| &nbsp;&nbsp;Loans to employees | 5 | 5 |
| &nbsp;&nbsp;Security deposits | 6 | 6 |
| &nbsp;&nbsp;Deposit with corporations | 12 | 4 |
| &nbsp;&nbsp;Defined benefit plan assets<sup>(1)</sup> | 2 | 3 |
| &nbsp;&nbsp;Prepaid expenses<sup>(1)</sup> | 18 | 13 |
| &nbsp;&nbsp;Deferred contract cost<sup>(1)(#)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 23 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 66 | 41 |
| &nbsp;&nbsp;Withholding taxes and others<sup>(1)</sup> | 83 | 89 |
| &nbsp;&nbsp;Net investment in sublease of right of use asset | 39 | 43 |
| &nbsp;&nbsp;Rental Deposits | 27 | 24 |
| &nbsp;&nbsp;Other financial assets | 82 | 23 |
| &nbsp;&nbsp;**Total Non- current prepayment and other assets** | **363** | **329** |
| &nbsp;&nbsp;**Total prepayment and other assets** | **1718** | **1462** |
| &nbsp;&nbsp;**Financial assets in prepayments and other assets** | **650** | **526** |

---

<sup>(1)</sup> Non financial assets

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

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

---

| | |
|:---|:---|
| <sup>#</sup> | 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 transferred to the Group in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Group has entered into financing arrangements with a third party for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to $90 million. During the nine months ended December 31, 2022, $5 million was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction (Refer to note 2.5) |

---

---

| | |
|:---|:---|
| <sup>\*\*</sup> | Includes $29 million towards shares purchased but not settled as of December 31, 2022 |

---

**2.5 Other liabilities**

Other liabilities comprise the following:

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **December 31, 2022** | **March 31, 2022** |
| &nbsp;&nbsp;**Current** |  |  |
| &nbsp;&nbsp;Accrued compensation to employees | 427 | 536 |
| &nbsp;&nbsp;Accrued defined benefit plan liability<sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;Accrued expenses | 948 | 986 |
| &nbsp;&nbsp;Withholding taxes and others <sup>(1)</sup> | 410 | 374 |
| &nbsp;&nbsp;Retention money | 2 | 2 |
| &nbsp;&nbsp;Liabilities of controlled trusts | 26 | 28 |
| &nbsp;&nbsp;Deferred income - government grants<sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;Liability towards contingent consideration | 11 | 9 |
| &nbsp;&nbsp;Capital creditors | 47 | 57 |
| &nbsp;&nbsp;Financial Liability on account of buyback<sup>(2)</sup> (Refer to note 2.18) | 195 | *–* |
| &nbsp;&nbsp;Tax on buyback<sup>(1)</sup> (Refer to note 2.18) | 78 | *–* |
| &nbsp;&nbsp;Financial liability under option arrangements | 81 | *–* |
| &nbsp;&nbsp;Other financial liabilities<sup>#</sup> | 305 | 176 |
| &nbsp;&nbsp;**Total Current other liabilities** | **2532** | **2170** |
| &nbsp;&nbsp;**Non-Current** |  |  |
| &nbsp;&nbsp;Liability towards contingent consideration | *–* | 7 |
| &nbsp;&nbsp;Accrued compensation to employees | 1 | 1 |
| &nbsp;&nbsp;Accrued expenses | 181 | 125 |
| &nbsp;&nbsp;Accrued defined benefit plan liability<sup>(1)</sup> | 57 | 50 |
| &nbsp;&nbsp;Deferred income - government grants<sup>(1)</sup> | 7 | 8 |
| &nbsp;&nbsp;Deferred income <sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;Financial liability under option arrangements | *–* | 86 |
| &nbsp;&nbsp;Other non financial liabilities<sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;Other financial liabilities<sup>#</sup> | 38 | 77 |
| &nbsp;&nbsp;**Total Non-current other liabilities** | **286** | **356** |
| &nbsp;&nbsp;**Total other liabilities** | **2818** | **2526** |
| &nbsp;&nbsp;Financial liabilities included in other liabilities | 2262 | 2090 |
| &nbsp;&nbsp;Financial liability towards contingent consideration on an undiscounted basis | 12 | 17 |

---

<sup>(1)</sup> Non financial liabilities

 

<sup>(2)</sup> In accordance with IAS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at December 31, 2022 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (Refer to note 2.18). The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.

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

---

| | |
|:---|:---|
| <sup>#</sup> | Deferred contract cost (in note 2.4) includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Group has entered in to financing arrangements with a third party for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to $90 million. During the nine months ended December 31, 2022, $5 million was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction |

---

**2.6 Provisions and other contingencies** 

**Accounting Policy**

**Provisions**

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

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

**Post sales client support**

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

**Onerous contracts**

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract.

Provisions comprise the following:

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | **December 31, 2022** | **March 31, 2022** |
| &nbsp;&nbsp;Provision for post sales client support and other provisions | 171 | 129 |
|  | **171** | **129** |

---

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

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

As at December 31, 2022 and March 31, 2022, claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities- Refer to Note 2.12) amounted to $84 million (![](rupee-symbol.gif)691 crore) and $84 million (![](rupee-symbol.gif)640 crore), respectively.

**Legal Proceedings**

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

**2.7 Property, plant and equipment**

**Accounting Policy**

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

---

| | |
|:---|:---|
| &nbsp;&nbsp;Building | 22-25 years |
| &nbsp;&nbsp;Plant and machinery<sup>(1)</sup> | 5 years |
| &nbsp;&nbsp;Computer equipment | 3-5 years |
| &nbsp;&nbsp;Furniture and fixtures | 5 years |
| &nbsp;&nbsp;Vehicles | 5 years |
| &nbsp;&nbsp;Leasehold improvements | Lower of useful life of the asset or lease term |

---

<sup>(1)</sup> includes solar plant with a useful life of 20 years

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

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

**Impairment**

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

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

Following are the changes in the carrying value of property, plant and equipment for three months ended December 31, 2022:

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| &nbsp;&nbsp;**Gross carrying value as at October 1, 2022** | **176** | **1393** | **618** | **1094** | **409** | **5** | **3695** |
| &nbsp;&nbsp;Additions | *–* | 20 | 16 | 42 | 14 | *–* | 92 |
| &nbsp;&nbsp;Deletions\* | *–* | *–* | *–* | (48) | (2) | *–* | (50) |
| &nbsp;&nbsp;Translation difference | (3) | (19) | (11) | (13) | (4) | 1 | (49) |
| &nbsp;&nbsp;**Gross carrying value as at December 31, 2022** | **173** | **1394** | **623** | **1075** | **417** | **6** | **3688** |
| &nbsp;&nbsp;**Accumulated depreciation as at October 1, 2022** |  ***–*** | **(530)** | **(472)** | **(782)** | **(318)** | **(5)** | **(2107)** |
| &nbsp;&nbsp;Depreciation | *–* | (13) | (14) | (42) | (11) | *–* | (80) |
| &nbsp;&nbsp;Accumulated depreciation on deletions\* | *–* | *–* | *–* | 48 | 2 | *–* | 50 |
| &nbsp;&nbsp;Translation difference | *–* | 8 | 8 | 10 | 3 | *–* | 29 |
| &nbsp;&nbsp;**Accumulated depreciation as at December 31, 2022** |  ***–*** | **(535)** | **(478)** | **(766)** | **(324)** | **(5)** | **(2108)** |
| &nbsp;&nbsp;Capital work-in progress as at December 31, 2022 |  |  |  |  |  |  | 42 |
| &nbsp;&nbsp;**Carrying value as at December 31, 2022** | **173** | **859** | **145** | **309** | **93** | **1** | **1622** |
| &nbsp;&nbsp;Capital work-in progress as at October 1, 2022 |  |  |  |  |  |  | 59 |
| &nbsp;&nbsp;**Carrying value as at October 1, 2022** | **176** | **863** | **146** | **312** | **91** |  ***–*** | **1647** |

---

Following are the changes in the carrying value of property, plant and equipment for three months ended December 31, 2021:

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| &nbsp;&nbsp;**Gross carrying value as at October 1, 2021** | **190** | **1488** | **693** | **1055** | **425** | **6** | **3857** |
| &nbsp;&nbsp;Additions | 2 | 8 | 11 | 45 | 4 | *–* | 70 |
| &nbsp;&nbsp;Deletions\* | *–* | *–* | (8) | (18) | (4) | *–* | (30) |
| &nbsp;&nbsp;Translation difference | *–* | *–* | (1) | (1) | *–* | *–* | (2) |
| &nbsp;&nbsp;**Gross carrying value as at December 31, 2021** | **192** | **1496** | **695** | **1081** | **425** | **6** | **3895** |
| &nbsp;&nbsp;**Accumulated depreciation as at October 1, 2021** |  ***–*** | **(523)** | **(510)** | **(767)** | **(312)** | **(5)** | **(2117)** |
| &nbsp;&nbsp;Depreciation | *–* | (14) | (15) | (36) | (10) | (1) | **(76)** |
| &nbsp;&nbsp;Accumulated depreciation on deletions\* | *–* | *–* | 5 | 18 | 3 | *–* | **26** |
| &nbsp;&nbsp;Translation difference | *–* | *–* | *–* | 1 | (1) | 1 | **1** |
| &nbsp;&nbsp;**Accumulated depreciation as at December 31, 2021** |  ***–*** | **(537)** | **(520)** | **(784)** | **(320)** | **(5)** | **(2166)** |
| &nbsp;&nbsp;Capital work-in progress as at December 31, 2021 |  |  |  |  |  |  | 67 |
| &nbsp;&nbsp;**Carrying value as at December 31, 2021** | **192** | **959** | **175** | **297** | **105** | **1** | **1796** |
| &nbsp;&nbsp;Capital work-in progress as at October 1, 2021 |  |  |  |  |  |  | 69 |
| &nbsp;&nbsp;**Carrying value as at October 1, 2021** | **190** | **965** | **183** | **288** | **113** | **1** | **1809** |

---

Following are the changes in the carrying value of property, plant and equipment for nine months ended December 31, 2022:

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| &nbsp;&nbsp;**Gross carrying value as at April 1, 2022** | **188** | **1481** | **653** | **1125** | **423** | **6** | **3876** |
| &nbsp;&nbsp;Additions | *–* | 38 | 33 | 127 | 35 | *–* | 233 |
| &nbsp;&nbsp;Additions- Business Combination (Refer Note 2.10) | *–* | *–* | 1 | 1 | *–* | *–* | 2 |
| &nbsp;&nbsp;Deletions\* | *–* | *–* | (5) | (84) | (6) | *–* | (95) |
| &nbsp;&nbsp;Translation difference | (15) | (125) | (59) | (94) | (35) | *–* | (328) |
| &nbsp;&nbsp;**Gross carrying value as at December 31, 2022** | **173** | **1394** | **623** | **1075** | **417** | **6** | **3688** |
| &nbsp;&nbsp;**Accumulated depreciation as at April 1, 2022** |  ***–*** | **(541)** | **(484)** | **(796)** | **(324)** | **(5)** | **(2150)** |
| &nbsp;&nbsp;Depreciation | *–* | (41) | (44) | (121) | (33) | *–* | (239) |
| &nbsp;&nbsp;Accumulated depreciation on deletions\* | *–* | *–* | 5 | 84 | 6 | *–* | 95 |
| &nbsp;&nbsp;Translation difference | *–* | 47 | 45 | 67 | 27 | *–* | 186 |
| &nbsp;&nbsp;**Accumulated depreciation as at December 31, 2022** |  ***–*** | **(535)** | **(478)** | **(766)** | **(324)** | **(5)** | **(2108)** |
| &nbsp;&nbsp;Capital work-in progress as at December 31, 2022 |  |  |  |  |  |  | 42 |
| &nbsp;&nbsp;**Carrying value as at December 31, 2022** | **173** | **859** | **145** | **309** | **93** | **1** | **1622** |
| &nbsp;&nbsp;Capital work-in progress as at April 1, 2022 |  |  |  |  |  |  | 67 |
| &nbsp;&nbsp;**Carrying value as at April 1, 2022** | **188** | **940** | **169** | **329** | **99** | **1** | **1793** |

---

\* During the three months ended and nine months ended December 31, 2022, certain assets which were old and not in use having gross book value of $33 million (net book value: Nil) and $62 million (net book value: Nil) respectively, were retired.

Following are the changes in the carrying value of property, plant and equipment for nine months ended December 31, 2021 :

*(Dollars in millions)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| &nbsp;&nbsp;**Gross carrying value as at April 1, 2021** | **191** | **1445** | **679** | **1045** | **416** | **6** | **3782** |
| &nbsp;&nbsp;Additions | 4 | 70 | 36 | 132 | 20 | *–* | 262 |
| &nbsp;&nbsp;Deletions\* | *–* | *–* | (9) | (80) | (6) | *–* | (95) |
| &nbsp;&nbsp;Translation difference | (3) | (19) | (11) | (16) | (5) | *–* | (54) |
| &nbsp;&nbsp;**Gross carrying value as at December 31, 2021** | **192** | **1496** | **695** | **1081** | **425** | **6** | **3895** |
| &nbsp;&nbsp;**Accumulated depreciation as at April 1, 2021** |  ***–*** | **(503)** | **(492)** | **(771)** | **(294)** | **(4)** | **(2064)** |
| &nbsp;&nbsp;Depreciation | *–* | (42) | (42) | (105) | (34) | (1) | (224) |
| &nbsp;&nbsp;Accumulated depreciation on deletions\* | *–* | *–* | 6 | 80 | 5 | *–* | 91 |
| &nbsp;&nbsp;Translation difference | *–* | 8 | 8 | 12 | 3 | *–* | 31 |
| &nbsp;&nbsp;**Accumulated depreciation as at December 31, 2021** |  ***–*** | **(537)** | **(520)** | **(784)** | **(320)** | **(5)** | **(2166)** |
| &nbsp;&nbsp;Capital work-in progress as at December 31, 2021 |  |  |  |  |  |  | 67 |
| &nbsp;&nbsp;**Carrying value as at December 31, 2021** | **192** | **959** | **175** | **297** | **105** | **1** | **1796** |
| &nbsp;&nbsp;Capital work-in progress as at April 1, 2021 |  |  |  |  |  |  | 145 |
| &nbsp;&nbsp;**Carrying value as at April 1, 2021** | **191** | **942** | **187** | **274** | **122** | **2** | **1863** |

---

\* During the three months ended and nine months ended December 31, 2021, certain assets which were old and not in use having gross book value of $8 million (net book value: Nil) and $43 million (net book value: Nil) respectively, were retired.

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

The Group had contractual commitments for capital expenditure primarily comprise of commitments for infrastructure facilities and computer equipments aggregating to $89 million and $164 million as at December 31, 2022 and March 31, 2022, respectively.

**2.8 Leases**

**Accounting Policy**

**The Group as a lessee** 

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

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

As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

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

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

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

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

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

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

**The Group as a lessor**

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

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

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

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2022

*(Dollars in millions)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**Land** | &nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;**Vehicle** | &nbsp;&nbsp;**Computer** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance as of October 1, 2022** | &nbsp;&nbsp; **77** | &nbsp;&nbsp; **472** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **141** | &nbsp;&nbsp; **692** |
| &nbsp;&nbsp;Additions\* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 17 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 122 | &nbsp;&nbsp; 139 |
| &nbsp;&nbsp;Deletions | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (1) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (11) | &nbsp;&nbsp; (12) |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (20) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (20) | &nbsp;&nbsp; (41) |
| &nbsp;&nbsp;Translation difference | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (3) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 9 | &nbsp;&nbsp; 5 |
| &nbsp;&nbsp;**Balance as of December 31, 2022** | &nbsp;&nbsp; **75** | &nbsp;&nbsp; **465** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **241** | &nbsp;&nbsp; **783** |

---

\* Net of adjustments on account of modifications and lease incentives

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2021

*(Dollars in millions)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**Land** | &nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;**Vehicle** | &nbsp;&nbsp;**Computer** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance as of October 1, 2021** | &nbsp;&nbsp; **85** | &nbsp;&nbsp; **504** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **29** | &nbsp;&nbsp; **620** |
| &nbsp;&nbsp;Additions\* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 32 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 25 | &nbsp;&nbsp; 57 |
| &nbsp;&nbsp;Deletions | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (9) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (2) | &nbsp;&nbsp; (11) |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (23) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (5) | &nbsp;&nbsp; (28) |
| &nbsp;&nbsp;Translation difference | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (1) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (1) |
| &nbsp;&nbsp;**Balance as of December 31, 2021** | &nbsp;&nbsp; **85** | &nbsp;&nbsp; **503** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **47** | &nbsp;&nbsp; **637** |

---

\* Net of adjustments on account of modifications

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2022

*(Dollars in millions)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Particulars | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** |
|  | &nbsp;&nbsp;**Land** | &nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;**Vehicle** | &nbsp;&nbsp;**Computer** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance as of April 1, 2022** | &nbsp;&nbsp; **83** | &nbsp;&nbsp; **489** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **62** | &nbsp;&nbsp; **636** |
| &nbsp;&nbsp;Additions\* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 79 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 248 | &nbsp;&nbsp; 328 |
| &nbsp;&nbsp;Deletions | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (1) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (31) | &nbsp;&nbsp; (32) |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (62) | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (39) | &nbsp;&nbsp; (103) |
| &nbsp;&nbsp;Translation difference | &nbsp;&nbsp; (7) | &nbsp;&nbsp; (40) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 1 | &nbsp;&nbsp; (46) |
| &nbsp;&nbsp;**Balance as of December 31, 2022** | &nbsp;&nbsp; **75** | &nbsp;&nbsp; **465** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **241** | &nbsp;&nbsp; **783** |

---

\* Net of adjustments on account of modifications and lease incentives

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2021

*(Dollars in millions)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Particulars | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** | &nbsp;&nbsp;**Category of ROU asset** |
|  | &nbsp;&nbsp;**Land** | &nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;**Vehicle** | &nbsp;&nbsp;**Computer** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Balance as of April 1, 2021** | &nbsp;&nbsp; **86** | &nbsp;&nbsp; **545** | &nbsp;&nbsp; **3** | &nbsp;&nbsp; **22** | &nbsp;&nbsp; **656** |
| &nbsp;&nbsp;Additions\* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 40 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 39 | &nbsp;&nbsp; 79 |
| &nbsp;&nbsp;Deletions | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (9) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (4) | &nbsp;&nbsp; (13) |
| &nbsp;&nbsp;Depreciation | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (65) | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (9) | &nbsp;&nbsp; (76) |
| &nbsp;&nbsp;Translation difference | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (8) | &nbsp;&nbsp; *–* | &nbsp;&nbsp; (1) | &nbsp;&nbsp; (9) |
| &nbsp;&nbsp;**Balance as of December 31, 2021** | &nbsp;&nbsp; **85** | &nbsp;&nbsp; **503** | &nbsp;&nbsp; **2** | &nbsp;&nbsp; **47** | &nbsp;&nbsp; **637** |

---

\* Net of adjustments on account of modifications

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

The following is the break-up of current and non-current lease liabilities as of December 31, 2022 and March 31, 2022

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;**As at** | &nbsp;&nbsp;**As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**March 31, 2022** |
| &nbsp;&nbsp;Current lease liabilities | &nbsp;&nbsp; 138 | &nbsp;&nbsp; 115 |
| &nbsp;&nbsp;Non-current lease liabilities | &nbsp;&nbsp; 795 | &nbsp;&nbsp; 607 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **933** | &nbsp;&nbsp; **722** |

---

**2.9 Goodwill and intangible assets**

**2.9.1 Goodwill**

**Accounting Policy**

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

**Impairment**

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

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

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

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;**As at** | &nbsp;&nbsp;**As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**March 31, 2022** |
| &nbsp;&nbsp;Carrying value at the beginning | &nbsp;&nbsp; 817 | &nbsp;&nbsp; 832 |
| &nbsp;&nbsp;Goodwill on acquisition (Refer to Note 2.10) | &nbsp;&nbsp; 79 | &nbsp;&nbsp; *–* |
| &nbsp;&nbsp;Translation differences | &nbsp;&nbsp; (20) | &nbsp;&nbsp; (15) |
| &nbsp;&nbsp;Carrying value at the end | &nbsp;&nbsp; **876** | &nbsp;&nbsp; **817** |

---

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

**2.9.2 Intangibles**

**Accounting policy**

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

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

**Impairment**

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

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

**2.10 Business combinations** 

**Accounting Policy**

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

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

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

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

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

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

**Acquisition**

**Oddity**

On April 20, 2022, Infosys Germany GmbH (a wholly-owned subsidiary of Infosys Consulting Pte. Ltd) acquired 100% voting interests in oddity GmbH, oddity group services GmbH, oddity space GmbH, oddity jungle GmbH, oddity code GmbH and oddity waves GmbH (collectively known as oddity), Germany-based digital marketing, experience, and commerce agency. This acquisition is expected to strengthen the Group's creative, branding and experience design capabilities in Germany and across Europe.

The purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the dates of acquisition as follows:

*(Dollars in millions)*

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Component** | &nbsp;&nbsp;**Acquiree's carrying amount** | &nbsp;&nbsp;**Fair value adjustments** | &nbsp;&nbsp;**Purchase price allocated** |
| &nbsp;&nbsp;Net Assets<sup>(1)</sup> | &nbsp;&nbsp;6 | &nbsp;&nbsp;*–* | &nbsp;&nbsp;6 |
| &nbsp;&nbsp;Intangible assets – |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer contracts and relationships<sup>(2)</sup> | &nbsp;&nbsp;*–* | &nbsp;&nbsp;13 | &nbsp;&nbsp;13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities on intangible assets | &nbsp;&nbsp;*–* | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**6** | &nbsp;&nbsp;**9** | &nbsp;&nbsp;**15** |
| &nbsp;&nbsp;Goodwill |  |  | &nbsp;&nbsp;23 |
| &nbsp;&nbsp;**Total purchase price** |  |  | &nbsp;&nbsp;**38** |

---

<sup>(1)</sup> Includes cash and cash equivalents acquired of $3 million.

<sup>(2)</sup> The estimated useful life is around 5 years.

The excess of the purchase consideration paid over the fair value of 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.

The purchase consideration of $38 million includes cash of $32 million and contingent consideration with an estimated fair value of $6 million 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 and discount rate of 12.5%. The undiscounted value of contingent consideration as of December 31, 2022 was $7 million. Additionally, this acquisition has 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 the respective years. Bonus is recognized in employee benefit expenses in the statement of comprehensive income over the period of service.

Fair value of trade receivables acquired, is $5 million as of acquisition date and as of December 31, 2022 the amounts are fully collected.

The transaction costs of less than a million related to the acquisition have been included under administrative expenses in the Consolidated Statement of comprehensive income for the quarter ended June 30, 2022.

**BASE life science A/S**

On September 01, 2022, Infosys Consulting Pte. Ltd (a wholly-owned subsidiary of Infosys Limited) acquired 100% voting interests in BASE life science A/S, a consulting and technology firm in the life sciences industry in Europe. This acquisition is expected to augment the Group's life sciences expertise, scale its digital transformation capabilities with cloud based industry solutions and expand its presence in Nordics region and across Europe.

The purchase price allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows:

*(Dollars in millions)*

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Component** | **Acquiree's carrying amount** | **Fair value adjustments** | **Purchase price allocated** |
| &nbsp;&nbsp;Net Assets<sup>(1)</sup> | 6 | *–* | 6 |
| &nbsp;&nbsp;Intangible assets – |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer contracts and relationships<sup>#</sup> | *–* | 21 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor relationships<sup>#</sup> | *–* | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brand<sup>#</sup> | *–* | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities on intangible assets | *–* | (6) | (6) |
| &nbsp;&nbsp;**Total** | **6** | **22** | **28** |
| &nbsp;&nbsp;Goodwill |  |  | 56 |
| &nbsp;&nbsp;**Total purchase price** |  |  | **84** |

---

*<sup>(1)</sup>* *Includes cash and cash equivalents acquired of less than a million.*

*<sup>#</sup>* *Useful lives are estimated to be in the range of 1 to 6 years*

The excess of the purchase consideration paid over the fair value of 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.

Additionally, this acquisition has shareholder and employee retention payouts payable to the employees of the acquiree over three years, subject to their continuous employment with the group. Performance and retention bonus is recognised in employee benefit expenses in the Statement of Comprehensive Income over the period of service.

Fair value of trade receivables acquired, is $9 million as of acquisition date and as of December 31, 2022 the amounts are substantially collected.

The transaction costs of less than a million related to the acquisition have been included under administrative expenses in the Consolidated Statement of comprehensive income for the quarter ended September 30, 2022.

**2.11 Employees' Stock Option Plans (ESOP)**

**Accounting Policy**

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

**Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan)**

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

**2015 Stock Incentive Compensation Plan (the 2015 Plan) :**

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

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

Controlled trust holds 12,568,222 and 13,725,712 shares as at December 31, 2022 and March 31, 2022, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked for welfare activities of the employees as at December 31, 2022 and March 31, 2022.

The following is the summary of grants during three months and nine months ended December 31, 2022 and December 31, 2021

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**2019 Plan** | &nbsp;&nbsp;**2019 Plan** | &nbsp;&nbsp;**2019 Plan** | &nbsp;&nbsp;**2019 Plan** | &nbsp;&nbsp;**2015 Plan** | &nbsp;&nbsp;**2015 Plan** | &nbsp;&nbsp;**2015 Plan** | &nbsp;&nbsp;**2015 Plan** |
|  | &nbsp;&nbsp;**Three months ended December 31,** | &nbsp;&nbsp;**Three months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Three months ended December 31,** | &nbsp;&nbsp;**Three months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** | &nbsp;&nbsp;**Nine months ended December 31,** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| &nbsp;&nbsp;**Equity settled RSU** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;KMPs | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 176893 | &nbsp;&nbsp; 73962 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 287325 | &nbsp;&nbsp; 101697 |
| &nbsp;&nbsp;Employees other than KMP | &nbsp;&nbsp; 3814 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 374774 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 48050 | &nbsp;&nbsp; 25270 | &nbsp;&nbsp; 48050 | &nbsp;&nbsp; 25270 |
|  | &nbsp;&nbsp; **3814** | &nbsp;&nbsp; ***–*** | &nbsp;&nbsp; **551667** | &nbsp;&nbsp; **73962** | &nbsp;&nbsp; **48050** | &nbsp;&nbsp; **25270** | &nbsp;&nbsp; **335375** | &nbsp;&nbsp; **126967** |

---

**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 a term 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 accordance with the terms of his employment agreement effective till June 30, 2022, approved the grant of performance-based RSUs of fair value of ![](rupee-symbol.gif)13 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement 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, the Board, on July 24, 2022, based on the recommendations of the Nomination and Remuneration Committee:

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the grant of performance-based RSUs (Annual performance equity grant) of fair value
of ![](rupee-symbol.gif) 21.75 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement
of certain performance targets. Accordingly, 140,228 performance based RSU's were granted effective August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance equity ESG grant) of fair
value of ![](rupee-symbol.gif) 2 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement
of certain environment, social and governance milestones as determined by the Board. Accordingly, 12,894 performance based RSU's
were granted effective August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance Equity TSR grant) of fair
value of ![](rupee-symbol.gif) 5 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on Company's
performance on cumulative relative TSR over the years and as determined by the Board. Accordingly, 32,236 performance based RSU's
were granted effective August 1, 2022.

**Under the 2019 plan:**

The Board, on April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ![](rupee-symbol.gif)10 crore for fiscal 2023 under the 2019 Plan. These RSUs will vest in line with the employment agreement effective till June 30, 2022 based on achievement of certain performance targets. Accordingly, 64,983 performance based RSU's were granted effective May 2, 2022.

**Other KMP**

**Under the 2015 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performance-based grant of 5,616 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. The performance based RSUs will vest over three years based on certain performance targets.

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved time based grant of 11,990 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. These RSUs will vest over four years.

**Under the 2019 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance based grants of 8,000 RSUs to a KMP under the 2019 plan. The grants were made effective May 2, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

On May 21, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance based grants of 104,000 RSUs to other KMPs under the 2019 plan. The grants were made effective June 1, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

**Break-up of employee stock compensation expense: -**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Three months ended December 31, 2022** | **Three months ended December 31, 2021** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2021** |
| &nbsp;&nbsp;**Granted to:** |  |  |  |  |
| &nbsp;&nbsp;KMP <sup>#</sup> | *–* | 2 | 5 | 7 |
| &nbsp;&nbsp;Employees other than KMP | 14 | 11 | 43 | 34 |
| &nbsp;&nbsp;Total <sup>(1)</sup> | **14** | **13** | **48** | **41** |
| &nbsp;&nbsp;*<sup>(1)</sup> Cash settled stock compensation expense included in the above* | 1 | 1 | *–* | 3 |

---

<sup>#</sup> Includes reversal of employee stock compensation expense on account of resignation.

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**For options granted in** | &nbsp;&nbsp;**For options granted in** | &nbsp;&nbsp;**For options granted in** | &nbsp;&nbsp;**For options granted in** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**Fiscal 2023- Equity Shares-RSU** | &nbsp;&nbsp;**Fiscal 2023- ADS-RSU** | &nbsp;&nbsp;**Fiscal 2022- Equity Shares-RSU** | &nbsp;&nbsp;**Fiscal 2022- ADS-RSU** |
| &nbsp;&nbsp;Weighted average share price (![](rupee-symbol.gif)) / ($ ADS) | &nbsp;&nbsp; 1525 | &nbsp;&nbsp; 19.01 | &nbsp;&nbsp; 1791 | &nbsp;&nbsp; 24.45 |
| &nbsp;&nbsp;Exercise price (![](rupee-symbol.gif))/ ($ ADS) | &nbsp;&nbsp;5.00 | &nbsp;&nbsp; 0.07 | &nbsp;&nbsp;5.00 | &nbsp;&nbsp;0.07 |
| &nbsp;&nbsp;Expected volatility (%) | &nbsp;&nbsp;23-32 | &nbsp;&nbsp;28-34 | &nbsp;&nbsp;20-35 | &nbsp;&nbsp;25-36 |
| &nbsp;&nbsp;Expected life of the option (years) | &nbsp;&nbsp;1-4 | &nbsp;&nbsp;1-4 | &nbsp;&nbsp;1-4 | &nbsp;&nbsp;1-4 |
| &nbsp;&nbsp;Expected dividends (%) | &nbsp;&nbsp;2-3 | &nbsp;&nbsp;2-3 | &nbsp;&nbsp;2-3 | &nbsp;&nbsp;2-3 |
| &nbsp;&nbsp;Risk-free interest rate (%) | &nbsp;&nbsp;5-7 | &nbsp;&nbsp;2-5 | &nbsp;&nbsp;4-6 | &nbsp;&nbsp;1-3 |
| &nbsp;&nbsp;Weighted average fair value as on grant date (![](rupee-symbol.gif)) / ($ ADS) | &nbsp;&nbsp; 1283 | &nbsp;&nbsp; 14.40 | &nbsp;&nbsp; 1548 | &nbsp;&nbsp; 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.

**2.12 Income taxes**

**Accounting policy**

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

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

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

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

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Three months ended December 31, 2022** | **Three months ended December 31, 2021** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2021** |
| &nbsp;&nbsp;**Current taxes** |  |  |  |  |
| &nbsp;&nbsp;Domestic taxes | 194 | 196 | 642 | 582 |
| &nbsp;&nbsp;Foreign taxes | 73 | 79 | 236 | 224 |
|  | **267** | **275** | **878** | **806** |
| &nbsp;&nbsp;**Deferred taxes** |  |  |  |  |
| &nbsp;&nbsp;Domestic taxes | 29 | 16 | 33 | 45 |
| &nbsp;&nbsp;Foreign taxes | (11) | (8) | (52) | (28) |
|  | **18** | **8** | **(19)** | **17** |
| &nbsp;&nbsp;**Income tax expense** | **285** | **283** | **859** | **823** |

---

Income tax expense for the three months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of $9 million and provisions (net of reversal) of $1 million, respectively. Income tax expense for the nine months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of $4 million and $3 million, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions.

Deferred income tax for the three months ended and nine months ended December 31, 2022 and December 31, 2021 substantially relates to origination and reversal of temporary differences.

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

As at December 31, 2022, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $490 million (![](rupee-symbol.gif)4,051 crore).

As at March 31, 2022, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $528 million (![](rupee-symbol.gif)4,001 crore).

Amount paid to statutory authorities against the tax claims amounted to $791 million (![](rupee-symbol.gif)6,546 crore) and $791 million (![](rupee-symbol.gif)5,996 crore) as at December 31, 2022 and March 31, 2022 respectively.

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

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

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

**Accounting Policy**

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

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

**2.14 Related party transactions**

Refer Note 2.20 "Related party transactions" in the Company's 2022 Annual Report on Form 20-F for the full names and other details of the Company's subsidiaries and controlled trusts.

**Changes in Subsidiaries**

- During the nine months ended December 31, 2022, the following are the changes in the subsidiaries:

- 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 effect from April 1, 2022.

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH ("Kristall")) (a wholly owned subsidiary of 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 along with its subsidiary oddity code d.o.o, and oddity GmbH along with its two subsidiaries oddity (Shanghai) Co. Ltd., oddity Limited(Taipei).

- Panaya GmbH renamed as Infosys Financial Services GmbH.

- Infosys Arabia Limited, a majority owned and controlled subsidiary of Infosys Limited is under liquidation.

- Infosys Public Services Canada Inc., a wholly owned subsidiary of Infosys Public Services Inc. was incorporated on July 08, 2022.

On September 1, 2022, Infosys Consulting Pte. Ltd. (a Wholly-owned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S along with its seven subsidiaries BASE life science AG, BASE life science GmbH, BASE life science Ltd., BASE life science S.A.S., BASE life science S.r.l., Innovisor Inc. and BASE life science Inc.

- BASE life science SL., a wholly owned subsidiary of BASE life science A/S was incorporated on September 6, 2022

- Panaya Germany GmbH, a wholly owned subsidiary of Panaya Inc. was incorporated on December 15, 2022.

**Change in key management personnel**

The following are the changes in the key management personnel:

- Ravi Kumar S resigned effective October 11, 2022

**Transactions with key management personnel**

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

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | **Three months ended December 31, 2022** | **Three months ended December 31, 2021** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2021** |
| &nbsp;&nbsp;Salaries and other short term employee benefits to whole-time directors and executive officers<sup>(1)(2)</sup> | 2 | 4 | 11 | 14 |
| &nbsp;&nbsp;Commission and other benefits to non-executive/ independent directors | 1 | *–* | 2 | 1 |
| &nbsp;&nbsp;**Total** | **3** | **4** | **13** | **15** |

---

<sup>(1)</sup> Total employee stock compensation expense for the three months ended December 31, 2022 and December 31, 2021 includes a charge of less than a million and $2 million respectively, towards key managerial personnel. For the nine months ended December 31, 2022 and December 31, 2021, includes a charge of $5 million and $7 million respectively, towards key managerial personnel. (Refer note 2.11). Stock compensation expense for the three months and nine months ended December 31, 2022 include reversal of expense on account of resignation.

 

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

**2.15 Segment Reporting**

IFRS 8 Operating Segments establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance.

The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

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

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

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

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

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

**2.15.1 Business Segments**

Three months ended December 31, 2022 and December 31, 2021

*(Dollars in millions)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Financial Services<sup>(1)</sup>** | &nbsp;&nbsp;**Retail<sup>(2)</sup>** | &nbsp;&nbsp;**Communication<sup>(3)</sup>** | &nbsp;&nbsp;**Energy, Utilities, resources and Services** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Hi Tech** | &nbsp;&nbsp;**Life Sciences<sup>(4)</sup>** | &nbsp;&nbsp;**All Other Segments <sup>(5)</sup>** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp; **1366** | &nbsp;&nbsp; **667** | &nbsp;&nbsp; **573** | &nbsp;&nbsp; **603** | &nbsp;&nbsp; **619** | &nbsp;&nbsp; **376** | &nbsp;&nbsp; **328** | &nbsp;&nbsp; **127** | &nbsp;&nbsp;**4659** |
|  | &nbsp;&nbsp; *1337* | &nbsp;&nbsp; *615* | &nbsp;&nbsp; *531* | &nbsp;&nbsp; *499* | &nbsp;&nbsp; *479* | &nbsp;&nbsp; *342* | &nbsp;&nbsp; *318* | &nbsp;&nbsp; *129* | &nbsp;&nbsp;*4250* |
| &nbsp;&nbsp;Identifiable operating expenses | &nbsp;&nbsp; 796 | &nbsp;&nbsp; 345 | &nbsp;&nbsp; 348 | &nbsp;&nbsp; 315 | &nbsp;&nbsp; 390 | &nbsp;&nbsp; 217 | &nbsp;&nbsp; 192 | &nbsp;&nbsp; 91 | &nbsp;&nbsp;2694 |
|  | &nbsp;&nbsp; *755* | &nbsp;&nbsp; *298* | &nbsp;&nbsp; *314* | &nbsp;&nbsp; *269* | &nbsp;&nbsp; *312* | &nbsp;&nbsp; *202* | &nbsp;&nbsp; *188* | &nbsp;&nbsp; *88* | &nbsp;&nbsp;*2426* |
| &nbsp;&nbsp;Allocated expenses | &nbsp;&nbsp; 244 | &nbsp;&nbsp; 122 | &nbsp;&nbsp; 98 | &nbsp;&nbsp; 111 | &nbsp;&nbsp; 104 | &nbsp;&nbsp; 60 | &nbsp;&nbsp; 53 | &nbsp;&nbsp; 35 | &nbsp;&nbsp; 827 |
|  | &nbsp;&nbsp; *217* | &nbsp;&nbsp; *100* | &nbsp;&nbsp; *88* | &nbsp;&nbsp; *87* | &nbsp;&nbsp; *83* | &nbsp;&nbsp; *55* | &nbsp;&nbsp; *45* | &nbsp;&nbsp; *31* | &nbsp;&nbsp; *706* |
| &nbsp;&nbsp;**Segment profit** | &nbsp;&nbsp; **326** | &nbsp;&nbsp; **200** | &nbsp;&nbsp; **127** | &nbsp;&nbsp; **177** | &nbsp;&nbsp; **125** | &nbsp;&nbsp; **99** | &nbsp;&nbsp; **83** | &nbsp;&nbsp; **1** | &nbsp;&nbsp;**1138** |
|  | &nbsp;&nbsp; *365* | &nbsp;&nbsp; *217* | &nbsp;&nbsp; *129* | &nbsp;&nbsp; *143* | &nbsp;&nbsp; *84* | &nbsp;&nbsp; *85* | &nbsp;&nbsp; *85* | &nbsp;&nbsp; *10* | &nbsp;&nbsp;*1118* |
| &nbsp;&nbsp;Unallocable expenses |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 137 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *120* |
| &nbsp;&nbsp;**Operating profit** |  |  |  |  |  |  |  |  | &nbsp;&nbsp;**1001** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *998* |
| &nbsp;&nbsp;Other income, net (Refer to Note 2.19) |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 94 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *68* |
| &nbsp;&nbsp;Finance cost |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 10 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *7* |
| &nbsp;&nbsp;**Profit before Income taxes** |  |  |  |  |  |  |  |  | &nbsp;&nbsp;**1085** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp;*1059* |
| &nbsp;&nbsp;Income tax expense |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 285 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *283* |
| &nbsp;&nbsp;**Net profit** |  |  |  |  |  |  |  |  | &nbsp;&nbsp; **800** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *776* |
| &nbsp;&nbsp;Depreciation and amortization |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 137 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *120* |
| &nbsp;&nbsp;Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *–* |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *–* |

---

<sup>(1)</sup> Financial Services include enterprises in Financial Services and Insurance

<sup>(2)</sup> Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

<sup>(3)</sup> Communication includes enterprises in Communication, Telecom OEM and Media

<sup>(4)</sup> Life Sciences includes enterprises in Life sciences and Health care

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

Nine months ended December 31, 2022 and December 31, 2021

*(Dollars in millions)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Financial Services <sup>(1)</sup>** | &nbsp;&nbsp;**Retail<sup>(2)</sup>** | &nbsp;&nbsp;**Communication <sup>(3)</sup>** | &nbsp;&nbsp;**Energy, Utilities, resources and Services** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Hi Tech** | &nbsp;&nbsp;**Life Sciences<sup>(4)</sup>** | &nbsp;&nbsp;**All Other Segments <sup>(5)</sup>** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp; **4118** | &nbsp;&nbsp; **1958** | &nbsp;&nbsp; **1710** | &nbsp;&nbsp; **1713** | &nbsp;&nbsp; **1739** | &nbsp;&nbsp;**1109** | &nbsp;&nbsp; **925** | &nbsp;&nbsp; **385** | &nbsp;&nbsp;**13657** |
|  | &nbsp;&nbsp; *3878* | &nbsp;&nbsp; *1766* | &nbsp;&nbsp; *1488* | &nbsp;&nbsp; *1429* | &nbsp;&nbsp; *1281* | &nbsp;&nbsp; *995* | &nbsp;&nbsp; *858* | &nbsp;&nbsp; *336* | &nbsp;&nbsp;*12031* |
| &nbsp;&nbsp;Identifiable operating expenses | &nbsp;&nbsp; 2353 | &nbsp;&nbsp; 1002 | &nbsp;&nbsp; 1062 | &nbsp;&nbsp; 913 | &nbsp;&nbsp; 1156 | &nbsp;&nbsp; 653 | &nbsp;&nbsp; 540 | &nbsp;&nbsp; 263 | &nbsp;&nbsp;7942 |
|  | &nbsp;&nbsp; *2196* | &nbsp;&nbsp; *853* | &nbsp;&nbsp; *895* | &nbsp;&nbsp; *759* | &nbsp;&nbsp; *775* | &nbsp;&nbsp; *594* | &nbsp;&nbsp; *487* | &nbsp;&nbsp; *231* | &nbsp;&nbsp;*6790* |
| &nbsp;&nbsp;Allocated expenses | &nbsp;&nbsp; 735 | &nbsp;&nbsp; 361 | &nbsp;&nbsp; 298 | &nbsp;&nbsp; 320 | &nbsp;&nbsp; 312 | &nbsp;&nbsp; 181 | &nbsp;&nbsp; 153 | &nbsp;&nbsp; 99 | &nbsp;&nbsp;2459 |
|  | &nbsp;&nbsp; *640* | &nbsp;&nbsp; *292* | &nbsp;&nbsp; *258* | &nbsp;&nbsp; *251* | &nbsp;&nbsp; *239* | &nbsp;&nbsp; *156* | &nbsp;&nbsp; *129* | &nbsp;&nbsp; *93* | &nbsp;&nbsp;*2058* |
| &nbsp;&nbsp;**Segment profit** | &nbsp;&nbsp; **1030** | &nbsp;&nbsp; **595** | &nbsp;&nbsp; **350** | &nbsp;&nbsp; **480** | &nbsp;&nbsp; **271** | &nbsp;&nbsp; **275** | &nbsp;&nbsp; **232** | &nbsp;&nbsp; **23** | &nbsp;&nbsp;**3256** |
|  | &nbsp;&nbsp; *1042* | &nbsp;&nbsp; *621* | &nbsp;&nbsp; *335* | &nbsp;&nbsp; *419* | &nbsp;&nbsp; *267* | &nbsp;&nbsp; *245* | &nbsp;&nbsp; *242* | &nbsp;&nbsp; *12* | &nbsp;&nbsp;*3183* |
| &nbsp;&nbsp;Unallocable expenses |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 388 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *348* |
| &nbsp;&nbsp;**Operating profit** |  |  |  |  |  |  |  |  | &nbsp;&nbsp;**2868** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 2835 |
| &nbsp;&nbsp;Other income, net (Refer to Note 2.19) |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 254 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *223* |
| &nbsp;&nbsp;Finance cost |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 25 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *20* |
| &nbsp;&nbsp;**Profit before Income taxes** |  |  |  |  |  |  |  |  | &nbsp;&nbsp;**3097** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp;*3038* |
| &nbsp;&nbsp;Income tax expense |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 859 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *823* |
| &nbsp;&nbsp;**Net profit** |  |  |  |  |  |  |  |  | &nbsp;&nbsp;**2238** |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp;*2215* |
| &nbsp;&nbsp;Depreciation and amortization |  |  |  |  |  |  |  |  | &nbsp;&nbsp; 388 |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *348* |
| &nbsp;&nbsp;Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *–* |
|  |  |  |  |  |  |  |  |  | &nbsp;&nbsp; *–* |

---

<sup>(1)</sup> Financial Services include enterprises in Financial Services and Insurance

<sup>(2)</sup> Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

<sup>(3)</sup> Communication includes enterprises in Communication, Telecom OEM and Media

<sup>(4)</sup> Life Sciences includes enterprises in Life sciences and Health care

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

**2.15.2 Significant clients**

No client individually accounted for more than 10% of the revenues for the three months and nine months ended December 31, 2022 and December 31, 2021, respectively.

**2.16 Revenue from Operations**

**Accounting Policy:**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

**Revenues for the three months ended and nine months ended December 31, 2022 and December 31, 2021 is as follows**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Three months ended December 31, 2022** | &nbsp;&nbsp;**Three months ended December 31, 2021** | &nbsp;&nbsp;**Nine months ended December 31, 2022** | &nbsp;&nbsp;**Nine months ended December 31, 2021** |
| &nbsp;&nbsp;Revenue from software services | &nbsp;&nbsp; 4362 | &nbsp;&nbsp; 3970 | &nbsp;&nbsp; 12790 | &nbsp;&nbsp; 11231 |
| &nbsp;&nbsp;Revenue from products and platforms | &nbsp;&nbsp; 297 | &nbsp;&nbsp; 280 | &nbsp;&nbsp; 867 | &nbsp;&nbsp; 800 |
| &nbsp;&nbsp;**Total revenue from operations** | &nbsp;&nbsp; **4659** | &nbsp;&nbsp; **4250** | &nbsp;&nbsp; **13657** | &nbsp;&nbsp; **12031** |

---

**Disaggregated revenue information**

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

**Three months ended December 31, 2022 and December 31, 2021**

*(Dollars in millions)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Financial Services<sup>(1)</sup>** | &nbsp;&nbsp;**Retail<sup>(2)</sup>** | &nbsp;&nbsp;**Communication<sup>(3)</sup>** | &nbsp;&nbsp;**Energy, Utilities, resources and Services** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Hi Tech** | &nbsp;&nbsp;**Life Sciences<sup>(4)</sup>** | &nbsp;&nbsp;**Others<sup>(5)</sup>** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Revenues by Geography\*** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | &nbsp;&nbsp; 878 | &nbsp;&nbsp; 467 | &nbsp;&nbsp; 351 | &nbsp;&nbsp; 330 | &nbsp;&nbsp; 236 | &nbsp;&nbsp; 352 | &nbsp;&nbsp; 240 | &nbsp;&nbsp; 35 | &nbsp;&nbsp;2889 |
|  | &nbsp;&nbsp; *841* | &nbsp;&nbsp; *418* | &nbsp;&nbsp; *307* | &nbsp;&nbsp; *260* | &nbsp;&nbsp; *220* | &nbsp;&nbsp; *319* | &nbsp;&nbsp; *230* | &nbsp;&nbsp; *32* | &nbsp;&nbsp;*2627* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | &nbsp;&nbsp; 229 | &nbsp;&nbsp; 163 | &nbsp;&nbsp; 119 | &nbsp;&nbsp; 224 | &nbsp;&nbsp; 363 | &nbsp;&nbsp; 8 | &nbsp;&nbsp; 83 | &nbsp;&nbsp; 13 | &nbsp;&nbsp;1202 |
|  | &nbsp;&nbsp; *230* | &nbsp;&nbsp; *163* | &nbsp;&nbsp; *130* | &nbsp;&nbsp; *197* | &nbsp;&nbsp; *239* | &nbsp;&nbsp; *7* | &nbsp;&nbsp; *84* | &nbsp;&nbsp; *8* | &nbsp;&nbsp;*1058* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | &nbsp;&nbsp; 55 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 8 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 14 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 24 | &nbsp;&nbsp; 113 |
|  | &nbsp;&nbsp; *66* | &nbsp;&nbsp; *3* | &nbsp;&nbsp; *6* | &nbsp;&nbsp; *5* | &nbsp;&nbsp; *2* | &nbsp;&nbsp; *14* | &nbsp;&nbsp; *1* | &nbsp;&nbsp; *30* | &nbsp;&nbsp; *127* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | &nbsp;&nbsp; 204 | &nbsp;&nbsp; 34 | &nbsp;&nbsp; 98 | &nbsp;&nbsp; 41 | &nbsp;&nbsp; 17 | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 4 | &nbsp;&nbsp; 55 | &nbsp;&nbsp; 455 |
|  | &nbsp;&nbsp; *200* | &nbsp;&nbsp; *31* | &nbsp;&nbsp; *88* | &nbsp;&nbsp; *37* | &nbsp;&nbsp; *18* | &nbsp;&nbsp; *2* | &nbsp;&nbsp; *3* | &nbsp;&nbsp; *59* | &nbsp;&nbsp; *438* |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **1366** | &nbsp;&nbsp; **667** | &nbsp;&nbsp; **573** | &nbsp;&nbsp; **603** | &nbsp;&nbsp; **619** | &nbsp;&nbsp; **376** | &nbsp;&nbsp; **328** | &nbsp;&nbsp; **127** | &nbsp;&nbsp;**4659** |
|  | &nbsp;&nbsp; ***1337*** | &nbsp;&nbsp; ***615*** | &nbsp;&nbsp; ***531*** | &nbsp;&nbsp; ***499*** | &nbsp;&nbsp; ***479*** | &nbsp;&nbsp; ***342*** | &nbsp;&nbsp; ***318*** | &nbsp;&nbsp; ***129*** | &nbsp;&nbsp;***4250*** |
| &nbsp;&nbsp;**Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | &nbsp;&nbsp; 757 | &nbsp;&nbsp; 440 | &nbsp;&nbsp; 383 | &nbsp;&nbsp; 383 | &nbsp;&nbsp; 458 | &nbsp;&nbsp; 241 | &nbsp;&nbsp; 204 | &nbsp;&nbsp; 64 | &nbsp;&nbsp;2930 |
|  | &nbsp;&nbsp; *702* | &nbsp;&nbsp; *386* | &nbsp;&nbsp; *325* | &nbsp;&nbsp;*295* | &nbsp;&nbsp; *325* | &nbsp;&nbsp; *201* | &nbsp;&nbsp; *194* | &nbsp;&nbsp; *59* | &nbsp;&nbsp;*2487* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | &nbsp;&nbsp; 609 | &nbsp;&nbsp; 227 | &nbsp;&nbsp; 190 | &nbsp;&nbsp; 220 | &nbsp;&nbsp; 161 | &nbsp;&nbsp; 135 | &nbsp;&nbsp; 124 | &nbsp;&nbsp; 63 | &nbsp;&nbsp;1729 |
|  | &nbsp;&nbsp; *635* | &nbsp;&nbsp; *229* | &nbsp;&nbsp; *206* | &nbsp;&nbsp; *204* | &nbsp;&nbsp; *154* | &nbsp;&nbsp; *141* | &nbsp;&nbsp; *124* | &nbsp;&nbsp; *70* | &nbsp;&nbsp;*1763* |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **1366** | &nbsp;&nbsp; **667** | &nbsp;&nbsp; **573** | &nbsp;&nbsp; **603** | &nbsp;&nbsp; **619** | &nbsp;&nbsp; **376** | &nbsp;&nbsp; **328** | &nbsp;&nbsp; **127** | &nbsp;&nbsp;**4659** |
|  | &nbsp;&nbsp; ***1337*** | &nbsp;&nbsp; ***615*** | &nbsp;&nbsp; ***531*** | &nbsp;&nbsp; ***499*** | &nbsp;&nbsp; ***479*** | &nbsp;&nbsp; ***342*** | &nbsp;&nbsp; ***318*** | &nbsp;&nbsp; ***129*** | &nbsp;&nbsp;***4250*** |

---

<sup>(1)</sup> Financial Services include enterprises in Financial Services and Insurance

<sup>(2)</sup> Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

<sup>(3)</sup> Communication includes enterprises in Communication, Telecom OEM and Media

<sup>(4)</sup> Life Sciences includes enterprises in Life sciences and Health care

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

\* Geographical revenues are based on the domicile of customer

**Nine months ended December 31, 2022 and December 31, 2021**

*(Dollars in millions)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Particulars** | &nbsp;&nbsp;**Financial Services<sup>(1)</sup>** | &nbsp;&nbsp;**Retail<sup>(2)</sup>** | &nbsp;&nbsp;**Communication<sup>(3)</sup>** | &nbsp;&nbsp;**Energy, Utilities, resources and Services** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Hi Tech** | &nbsp;&nbsp;**Life Sciences<sup>(4)</sup>** | &nbsp;&nbsp;**Others<sup>(5)</sup>** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Revenues by Geography\*** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | &nbsp;&nbsp; 2643 | &nbsp;&nbsp; 1361 | &nbsp;&nbsp; 1041 | &nbsp;&nbsp; 911 | &nbsp;&nbsp; 709 | &nbsp;&nbsp; 1036 | &nbsp;&nbsp; 680 | &nbsp;&nbsp; 101 | &nbsp;&nbsp;8482 |
|  | &nbsp;&nbsp; *2421* | &nbsp;&nbsp; *1193* | &nbsp;&nbsp; *818* | &nbsp;&nbsp; *738* | &nbsp;&nbsp; *627* | &nbsp;&nbsp; *927* | &nbsp;&nbsp; *619* | &nbsp;&nbsp; *93* | &nbsp;&nbsp;*7436* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | &nbsp;&nbsp; 690 | &nbsp;&nbsp; 485 | &nbsp;&nbsp; 353 | &nbsp;&nbsp; 652 | &nbsp;&nbsp; 980 | &nbsp;&nbsp; 26 | &nbsp;&nbsp; 229 | &nbsp;&nbsp; 28 | &nbsp;&nbsp;3443 |
|  | &nbsp;&nbsp; *680* | &nbsp;&nbsp; *475* | &nbsp;&nbsp; *359* | &nbsp;&nbsp; *566* | &nbsp;&nbsp; *612* | &nbsp;&nbsp; *22* | &nbsp;&nbsp; *225* | &nbsp;&nbsp; *23* | &nbsp;&nbsp;*2962* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | &nbsp;&nbsp; 177 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 16 | &nbsp;&nbsp; 20 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 41 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 89 | &nbsp;&nbsp; 360 |
|  | &nbsp;&nbsp; *183* | &nbsp;&nbsp; *10* | &nbsp;&nbsp; *36* | &nbsp;&nbsp; *14* | &nbsp;&nbsp; *7* | &nbsp;&nbsp; *40* | &nbsp;&nbsp; *3* | &nbsp;&nbsp; *50* | &nbsp;&nbsp; *343* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | &nbsp;&nbsp; 608 | &nbsp;&nbsp; 105 | &nbsp;&nbsp; 300 | &nbsp;&nbsp; 130 | &nbsp;&nbsp; 43 | &nbsp;&nbsp; 6 | &nbsp;&nbsp; 13 | &nbsp;&nbsp; 167 | &nbsp;&nbsp;1372 |
|  | &nbsp;&nbsp; *594* | &nbsp;&nbsp; *88* | &nbsp;&nbsp; *275* | &nbsp;&nbsp; *111* | &nbsp;&nbsp; *35* | &nbsp;&nbsp; *6* | &nbsp;&nbsp; *11* | &nbsp;&nbsp; *170* | &nbsp;&nbsp;*1290* |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **4118** | &nbsp;&nbsp; **1958** | &nbsp;&nbsp; **1710** | &nbsp;&nbsp; **1713** | &nbsp;&nbsp; **1739** | &nbsp;&nbsp;**1109** | &nbsp;&nbsp; **925** | &nbsp;&nbsp; **385** | &nbsp;&nbsp;**13657** |
|  | &nbsp;&nbsp; ***3878*** | &nbsp;&nbsp; ***1766*** | &nbsp;&nbsp; ***1488*** | &nbsp;&nbsp; ***1429*** | &nbsp;&nbsp; ***1281*** | &nbsp;&nbsp; ***995*** | &nbsp;&nbsp; ***858*** | &nbsp;&nbsp; ***336*** | &nbsp;&nbsp;***12031*** |
| &nbsp;&nbsp;**Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | &nbsp;&nbsp; 2267 | &nbsp;&nbsp; 1276 | &nbsp;&nbsp; 1140 | &nbsp;&nbsp; 1066 | &nbsp;&nbsp; 1250 | &nbsp;&nbsp; 699 | &nbsp;&nbsp; 575 | &nbsp;&nbsp; 183 | &nbsp;&nbsp;8456 |
|  | &nbsp;&nbsp; *2027* | &nbsp;&nbsp; *1068* | &nbsp;&nbsp; *887* | &nbsp;&nbsp; *821* | &nbsp;&nbsp; *770* | &nbsp;&nbsp; *569* | &nbsp;&nbsp; *492* | &nbsp;&nbsp; *136* | &nbsp;&nbsp;*6770* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | &nbsp;&nbsp; 1851 | &nbsp;&nbsp; 682 | &nbsp;&nbsp; 570 | &nbsp;&nbsp; 647 | &nbsp;&nbsp; 489 | &nbsp;&nbsp; 410 | &nbsp;&nbsp; 350 | &nbsp;&nbsp; 202 | &nbsp;&nbsp;5201 |
|  | &nbsp;&nbsp; *1851* | &nbsp;&nbsp; *698* | &nbsp;&nbsp; *601* | &nbsp;&nbsp; *608* | &nbsp;&nbsp; *511* | &nbsp;&nbsp; *426* | &nbsp;&nbsp; *366* | &nbsp;&nbsp; *200* | &nbsp;&nbsp;*5261* |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **4118** | &nbsp;&nbsp; **1958** | &nbsp;&nbsp; **1710** | &nbsp;&nbsp; **1713** | &nbsp;&nbsp; **1739** | &nbsp;&nbsp;**1109** | &nbsp;&nbsp; **925** | &nbsp;&nbsp; **385** | &nbsp;&nbsp;**13657** |
|  | &nbsp;&nbsp; ***3878*** | &nbsp;&nbsp; ***1766*** | &nbsp;&nbsp; ***1488*** | &nbsp;&nbsp; ***1429*** | &nbsp;&nbsp; ***1281*** | &nbsp;&nbsp; ***995*** | &nbsp;&nbsp; ***858*** | &nbsp;&nbsp; ***336*** | &nbsp;&nbsp;***12031*** |

---

<sup>(1)</sup> Financial Services include enterprises in Financial Services and Insurance

<sup>(2)</sup> Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics

<sup>(3)</sup> Communication includes enterprises in Communication, Telecom OEM and Media

<sup>(4)</sup> Life Sciences includes enterprises in Life sciences and Health care

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

\* Geographical revenue is based on the domicile of customer

**Digital Services**

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

**Core Services**

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

**Products & platforms**

The Group derives revenues from the sale of products and platforms including Finacle – core banking solution, Edge Suite of products, Panaya platform, Infosys Equinox, Infosys Applied AI, Stater digital platform and Infosys McCamish – insurance platform.

**Trade Receivables and Contract Balances**

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

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

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

Invoicing in excess of earnings are classified as unearned revenue.

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

**2.17 Unbilled revenue**

*(Dollars in millions)*

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;**As at** | &nbsp;&nbsp;**As at** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**March 31, 2022** |
| &nbsp;&nbsp;Unbilled financial asset <sup>(1)</sup> | &nbsp;&nbsp; 990 | &nbsp;&nbsp; 838 |
| &nbsp;&nbsp;Unbilled non financial asset <sup>(2)</sup> | &nbsp;&nbsp; 804 | &nbsp;&nbsp; 812 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **1794** | &nbsp;&nbsp; **1650** |

---

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

<sup>(2)</sup> Right to consideration is dependent on completion of contractual milestones.

**2.18 Equity**

**Accounting policy**

**Ordinary Shares**

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

**Treasury Shares**

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

**Description of reserves**

**Retained earnings**

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

**Share premium**

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

**Special Economic Zone Re-investment reserve**

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

**Capital Redemption Reserve**

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

**Other components of equity**

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

**Cash flow hedge reserve**

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction.

**2.18.1 Capital Allocation Policy**

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

**Update on buyback announced in October 2022:**

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 ![](rupee-symbol.gif)9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023. During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of $1 million equal to the nominal value of the shares bought back as an appropriation from general reserve.

**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 ![](rupee-symbol.gif)9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing General Meeting

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19 , 2021.

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buyback price of ![](rupee-symbol.gif)1,648.53/- per equity share comprising 1.31% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of ![](rupee-symbol.gif)9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. In accordance with section 69 of the Companies Act, 2013, as at March 31, 2022 , the Company has created 'Capital Redemption Reserve' amounting to $4 million equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of December 31, 2022, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

**2.18.2 Dividend**

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Nine months ended December 31, 2022** | &nbsp;&nbsp;**Nine months ended December 31, 2022** | &nbsp;&nbsp;**Nine months ended December 31, 2021** | &nbsp;&nbsp;**Nine months ended December 31, 2021** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**in ![](rupee-symbol.gif)** | &nbsp;&nbsp;**in US Dollars** | &nbsp;&nbsp;**in ![](rupee-symbol.gif)** | &nbsp;&nbsp;**in US Dollars** |
| &nbsp;&nbsp;Final dividend for fiscal 2021 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 15.00 | &nbsp;&nbsp; 0.20 |
| &nbsp;&nbsp;Interim dividend for fiscal 2022 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 15.00 | &nbsp;&nbsp; 0.20 |
| &nbsp;&nbsp;Final dividend for fiscal 2022 | &nbsp;&nbsp; 16.00 | &nbsp;&nbsp; 0.21 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* |
| &nbsp;&nbsp;Interim dividend for fiscal 2023 | &nbsp;&nbsp; 16.50 | &nbsp;&nbsp; 0.20 | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* |

---

The Board of Directors in their meeting held on April 13, 2022 recommended a final dividend of ![](rupee-symbol.gif)16/- per equity share for the financial year ended March 31, 2022. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 25, 2022 which resulted in a net cash outflow of $856 million (excluding dividend paid on treasury shares).

The Board of Directors in their meeting held on October 13, 2022 declared an interim dividend of ![](rupee-symbol.gif)16.50/- per equity share which resulted in a net cash outflow of $841 million (excluding dividend paid on treasury shares.)

**2.18.3 Share capital and share premium**

The Company has only one class of shares referred to as equity shares having a par value of ![](rupee-symbol.gif)5/- each. 12,568,222 shares and 13,725,712 shares were held by controlled trust, as at December 31, 2022 and March 31, 2022, respectively.

**2.19 Break-up of expenses and other income, net**

**Accounting Policy**

**2.19.1 Gratuity and Pensions**

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

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

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

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

**2.19.2 Superannuation**

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

**2.19.3 Provident fund**

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

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

**2.19.4 Compensated absences**

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

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

**2.19.5 Other income, net**

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

**2.19.6 Foreign Currency**

***Functional currency***

The functional currency of Infosys, Infosys BPM, EdgeVerve, Skava and controlled trusts is the Indian rupee. The functional currencies for foreign subsidiaries are their respective local currencies. These financial statements are presented in U.S. dollars (rounded off to the nearest 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 condensed Consolidated Statement of Comprehensive Income and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognised using the same exchange rate.

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

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

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

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

**2.19.7 Government grants**

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

**2.19.8 Operating Profits**

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

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

**Cost of sales**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Nine months ended** | &nbsp;&nbsp;**Nine months ended** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** |
| &nbsp;&nbsp;Employee benefit costs | &nbsp;&nbsp; 2236 | &nbsp;&nbsp; 1962 | &nbsp;&nbsp; 6583 | &nbsp;&nbsp; 5716 |
| &nbsp;&nbsp;Depreciation and amortization | &nbsp;&nbsp; 137 | &nbsp;&nbsp; 120 | &nbsp;&nbsp; 388 | &nbsp;&nbsp; 348 |
| &nbsp;&nbsp;Travelling costs | &nbsp;&nbsp; 31 | &nbsp;&nbsp; 24 | &nbsp;&nbsp; 97 | &nbsp;&nbsp; 59 |
| &nbsp;&nbsp;Cost of technical sub-contractors | &nbsp;&nbsp; 407 | &nbsp;&nbsp; 468 | &nbsp;&nbsp; 1371 | &nbsp;&nbsp; 1214 |
| &nbsp;&nbsp;Cost of software packages for own use | &nbsp;&nbsp; 60 | &nbsp;&nbsp; 36 | &nbsp;&nbsp; 170 | &nbsp;&nbsp; 128 |
| &nbsp;&nbsp;Third party items bought for service delivery to clients | &nbsp;&nbsp; 312 | &nbsp;&nbsp; 208 | &nbsp;&nbsp; 819 | &nbsp;&nbsp; 475 |
| &nbsp;&nbsp;Short term leases (Refer to Note 2.8) | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 2 |
| &nbsp;&nbsp;Consultancy and professional charges | &nbsp;&nbsp; 4 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 12 | &nbsp;&nbsp; 14 |
| &nbsp;&nbsp;Communication costs | &nbsp;&nbsp; 10 | &nbsp;&nbsp; 10 | &nbsp;&nbsp; 34 | &nbsp;&nbsp; 31 |
| &nbsp;&nbsp;Repairs and maintenance | &nbsp;&nbsp; 13 | &nbsp;&nbsp; 13 | &nbsp;&nbsp; 39 | &nbsp;&nbsp; 38 |
| &nbsp;&nbsp;Provision for post-sales client support | &nbsp;&nbsp; 16 | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 24 | &nbsp;&nbsp; 10 |
| &nbsp;&nbsp;Others | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 4 | &nbsp;&nbsp; 6 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **3230** | &nbsp;&nbsp; **2856** | &nbsp;&nbsp; **9544** | &nbsp;&nbsp; **8041** |

---

**Selling and marketing expenses**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Nine months ended** | &nbsp;&nbsp;**Nine months ended** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** |
| &nbsp;&nbsp;Employee benefit costs | &nbsp;&nbsp; 154 | &nbsp;&nbsp; 144 | &nbsp;&nbsp; 447 | &nbsp;&nbsp; 432 |
| &nbsp;&nbsp;Travelling costs | &nbsp;&nbsp; 8 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 25 | &nbsp;&nbsp; 5 |
| &nbsp;&nbsp;Branding and marketing | &nbsp;&nbsp; 27 | &nbsp;&nbsp; 19 | &nbsp;&nbsp; 79 | &nbsp;&nbsp; 49 |
| &nbsp;&nbsp;Consultancy and professional charges | &nbsp;&nbsp; 4 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 11 | &nbsp;&nbsp; 18 |
| &nbsp;&nbsp;Communication costs | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 1 |
| &nbsp;&nbsp;Others | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 4 | &nbsp;&nbsp; 11 | &nbsp;&nbsp; 8 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **196** | &nbsp;&nbsp; **177** | &nbsp;&nbsp; **574** | &nbsp;&nbsp; **513** |

---

**Administrative expenses**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Nine months ended** | &nbsp;&nbsp;**Nine months ended** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** |
| &nbsp;&nbsp;Employee benefit costs | &nbsp;&nbsp; 76 | &nbsp;&nbsp; 76 | &nbsp;&nbsp; 229 | &nbsp;&nbsp; 225 |
| &nbsp;&nbsp;Consultancy and professional charges | &nbsp;&nbsp; 41 | &nbsp;&nbsp; 56 | &nbsp;&nbsp; 139 | &nbsp;&nbsp; 151 |
| &nbsp;&nbsp;Repairs and maintenance | &nbsp;&nbsp; 30 | &nbsp;&nbsp; 26 | &nbsp;&nbsp; 85 | &nbsp;&nbsp; 83 |
| &nbsp;&nbsp;Power and fuel | &nbsp;&nbsp; 6 | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 16 | &nbsp;&nbsp; 13 |
| &nbsp;&nbsp;Communication costs | &nbsp;&nbsp; 12 | &nbsp;&nbsp; 9 | &nbsp;&nbsp; 33 | &nbsp;&nbsp; 28 |
| &nbsp;&nbsp;Travelling costs | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 3 | &nbsp;&nbsp; 15 | &nbsp;&nbsp; 6 |
| &nbsp;&nbsp;Rates and taxes | &nbsp;&nbsp; 9 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 28 | &nbsp;&nbsp; 24 |
| &nbsp;&nbsp;Short-term leases (Refer to Note 2.8) | &nbsp;&nbsp; 2 | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 3 |
| &nbsp;&nbsp;Insurance charges | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 6 | &nbsp;&nbsp; 16 | &nbsp;&nbsp; 16 |
| &nbsp;&nbsp;Commission to non-whole time directors | &nbsp;&nbsp; *–* | &nbsp;&nbsp; *–* | &nbsp;&nbsp; 1 | &nbsp;&nbsp; 1 |
| &nbsp;&nbsp;Impairment loss recognized/(reversed) under expected credit loss model | &nbsp;&nbsp; 13 | &nbsp;&nbsp; 7 | &nbsp;&nbsp; 25 | &nbsp;&nbsp; 19 |
| &nbsp;&nbsp;Contributions towards Corporate Social Responsibility | &nbsp;&nbsp; 18 | &nbsp;&nbsp; 12 | &nbsp;&nbsp; 40 | &nbsp;&nbsp; 47 |
| &nbsp;&nbsp;Others | &nbsp;&nbsp; 15 | &nbsp;&nbsp; 11 | &nbsp;&nbsp; 39 | &nbsp;&nbsp; 26 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **232** | &nbsp;&nbsp; **219** | &nbsp;&nbsp; **671** | &nbsp;&nbsp; **642** |

---

**Other income consist of the following:**

*(Dollars in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Three months ended** | &nbsp;&nbsp;**Nine months ended** | &nbsp;&nbsp;**Nine months ended** |
| &nbsp;&nbsp;**Particulars**<br>&nbsp;&nbsp; | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2021** |
| &nbsp;&nbsp;Interest income on financial assets carried at amortized cost | &nbsp;&nbsp; 26 | &nbsp;&nbsp; 27 | &nbsp;&nbsp; 83 | &nbsp;&nbsp; 105 |
| &nbsp;&nbsp;Interest income on financial assets carried at fair value through other comprehensive income | &nbsp;&nbsp; 29 | &nbsp;&nbsp; 19 | &nbsp;&nbsp; 91 | &nbsp;&nbsp; 61 |
| &nbsp;&nbsp;Gain/(loss) on investments carried at fair value through profit or loss | &nbsp;&nbsp; 6 | &nbsp;&nbsp; 5 | &nbsp;&nbsp; 11 | &nbsp;&nbsp; 13 |
| &nbsp;&nbsp;Exchange gains / (losses) on forward and options contracts | &nbsp;&nbsp; (44) | &nbsp;&nbsp; 16 | &nbsp;&nbsp; (98) | &nbsp;&nbsp; 24 |
| &nbsp;&nbsp;Exchange gains / (losses) on translation of foreign currency assets and liabilities | &nbsp;&nbsp; 67 | &nbsp;&nbsp; (8) | &nbsp;&nbsp; 143 | &nbsp;&nbsp; (2) |
| &nbsp;&nbsp;Others | &nbsp;&nbsp; 10 | &nbsp;&nbsp; 9 | &nbsp;&nbsp; 24 | &nbsp;&nbsp; 22 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp; **94** | &nbsp;&nbsp; **68** | &nbsp;&nbsp; **254** | &nbsp;&nbsp; **223** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;*for and on behalf of the Board of Directors of Infosys Limited*<br>|  |  |
| &nbsp;&nbsp; Nandan M. Nilekani<br> *Chairman* | &nbsp;&nbsp; <br> Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director*<br>| &nbsp;&nbsp; D. Sundaram<br> *Director* |
| &nbsp;&nbsp; Nilanjan Roy<br> *Chief Financial Officer* | &nbsp;&nbsp; <br> Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | &nbsp;&nbsp; A.G.S. Manikantha<br> *Company Secretary* |
| &nbsp;&nbsp; <br> Bengaluru |  |  |
| &nbsp;&nbsp;January 12, 2023 |  |  |

---

## Exhibit 99.13

**Exhibit 99.8**

**IFRS INR Earning Release**

**INDEPENDENT AUDITOR'S REPORT** 

**TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED**

**Report on the Audit of the Interim Condensed Consolidated Financial Statements**

**Opinion** 

We have audited the accompanying Interim condensed consolidated financial statements of **INFOSYS LIMITED** (the "Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at December 31, 2022, the Condensed Consolidated Statement of Comprehensive Income for the three months and nine months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the nine months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed consolidated financial statements give a true and fair view in conformity with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") as issued by the International Accounting Standards Board ("IASB"), of the consolidated state of affairs of the Group as at December 31, 2022, the consolidated profit and consolidated total comprehensive income for the three months and nine months ended on that date, consolidated changes in equity and its consolidated cash flows for the nine months ended on that date.

**Basis for Opinion**

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

**Management's Responsibilities for the Interim Condensed Consolidated Financial Statements**

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with IAS 34 as issued by the IASB. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records for safeguarding assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the interim condensed consolidated financial statements by the Directors of the Company, as aforesaid.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks
of material misstatement of the interim condensed consolidated financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal
financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on effectiveness of the Company's internal financial controls.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness
of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude on the appropriateness
of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the interim condensed consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause
the Group to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the overall presentation,
structure and content of the interim condensed consolidated financial statements, including the disclosures, and whether the interim condensed
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain sufficient appropriate
audit evidence regarding the financial information of the entities within the Group to express an opinion on the interim condensed consolidated
financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such
entities included in the interim condensed consolidated financial statements of which we are the independent auditors.

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

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

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

---

| | |
|:---|:---|
| Place: Bengaluru<br> Date: January 12, 2023 | **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018)<br>**Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRXZ4592  |

---

**INFOSYS LIMITED AND SUBSIDIARIES**

***Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in Indian Rupee for the three months and nine months ended December 31, 2022***

---

| |
|:---|
| &nbsp;&nbsp;**Index** |
| &nbsp;&nbsp;Condensed Consolidated Balance Sheet |
| &nbsp;&nbsp;Condensed Consolidated Statement of Comprehensive Income |
| &nbsp;&nbsp;Condensed Consolidated Statement of Changes in Equity |
| &nbsp;&nbsp;Condensed Consolidated Statement of Cash Flows |
| &nbsp;&nbsp;**Overview and Notes to the Interim Condensed Consolidated Financial Statements** |
| &nbsp;&nbsp;**1. Overview** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Company overview |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Basis of preparation of financial statements |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Basis of consolidation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Use of estimates and judgments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Critical accounting estimates and judgments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 Recent accounting pronouncements |
| &nbsp;&nbsp;**2. Notes to the Interim Condensed Consolidated Financial Statements** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Cash and cash equivalents |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Investments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Financial instruments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Prepayments and other assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Other liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Provisions and other contingencies |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Property, plant and equipment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Leases |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Goodwill and Intangible assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 Business combinations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 Employees' Stock Option Plans (ESOP) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Income Taxes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 Basic and diluted shares used in computing earnings per equity share |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 Related party transactions |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 Segment reporting |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 Revenue from Operations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 Unbilled Revenue |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 Equity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 Break-up of expenses and other income, net |

---

**Infosys Limited and subsidiaries**

*(In ![](rupee-symbol.gif) crore except equity share data)*

---

| | | | |
|:---|:---|:---|:---|
| **Condensed Consolidated Balance Sheet as at** | **Note** | **December 31, 2022** | **March 31, 2022** |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| Cash and cash equivalents | 2.1 | 11587 | 17472 |
| Current investments | 2.2 | 8730 | 6673 |
| Trade receivables |  | 27660 | 22698 |
| Unbilled revenue | 2.17 | 13139 | 11568 |
| Prepayments and other current assets | 2.4 | 11213 | 8577 |
| Income tax assets | 2.12 | *–* | 54 |
| Derivative financial instruments | 2.3 | 87 | 143 |
| **Total current assets** |  | **72416** | **67185** |
| **Non-current assets** |  |  |  |
| Property, plant and equipment | 2.7 | 13417 | 13579 |
| Right-of-use assets | 2.8 | 6480 | 4823 |
| Goodwill | 2.9 | 7247 | 6195 |
| Intangible assets |  | 1836 | 1707 |
| Non-current investments | 2.2 | 12386 | 13651 |
| Unbilled revenue | 2.17 | 1708 | 941 |
| Deferred income tax assets | 2.12 | 1157 | 1212 |
| Income tax assets | 2.12 | 6319 | 6098 |
| Other non-current assets | 2.4 | 3000 | 2494 |
| **Total non-current assets** |  | **53550** | **50700** |
| **Total assets** |  | **125966** | **117885** |
| **LIABILITIES AND EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| Trade payables |  | 4788 | 4134 |
| Lease liabilities | 2.8 | 1143 | 872 |
| Derivative financial instruments | 2.3 | 225 | 61 |
| Current income tax liabilities | 2.12 | 3168 | 2607 |
| Unearned revenue |  | 7117 | 6324 |
| Employee benefit obligations |  | 2400 | 2182 |
| Provisions | 2.6 | 1417 | 975 |
| Other current liabilities | 2.5 | 20947 | 16448 |
| **Total current liabilities** |  | **41205** | **33603** |
| **Non-current liabilities** |  |  |  |
| Lease liabilities | 2.8 | 6577 | 4602 |
| Deferred income tax liabilities | 2.12 | 1059 | 1156 |
| Employee benefit obligations |  | 87 | 92 |
| Other non-current liabilities | 2.5 | 2365 | 2696 |
| **Total liabilities** |  | **51293** | **42149** |
| **Equity** |  |  |  |
| Share capital - ![](rupee-symbol.gif)5 par value 4,800,000,000 (4800000000) equity shares authorized, issued and outstanding 4,170,348,621 (4193012929) equity shares fully paid up, net of 12,568,222 (13725712) treasury shares as at December 31, 2022 (March 31, 2022) | 2.18 | 2086 | 2098 |
| Share premium |  | 929 | 827 |
| Retained earnings |  | 59203 | 62423 |
| Cash flow hedge reserves |  | (41) | 2 |
| Other reserves |  | 10045 | 8339 |
| Capital redemption reserve |  | 150 | 139 |
| Other components of equity |  | 1920 | 1522 |
| **Total equity attributable to equity holders of the Company** |  | **74292** | **75350** |
| Non-controlling interests |  | 381 | 386 |
| **Total equity** |  | **74673** | **75736** |
| **Total liabilities and equity** |  | **125966** | **117885** |

---

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

*As per our report of even date attached*

 

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**Infosys Limited and subsidiaries**

*(In ![](rupee-symbol.gif) crore except equity share and per equity share data)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statement of Comprehensive Income for the** | **Note** | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
| **Revenues** | 2.16 | **38318** | **31867** | **109326** | **89365** |
| Cost of sales | 2.19 | 26561 | 21415 | 76342 | 59726 |
| **Gross profit** |  | **11757** | **10452** | **32984** | **29639** |
| **Operating expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | 2.19 | 1611 | 1325 | 4591 | 3809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses | 2.19 | 1904 | 1643 | 5365 | 4771 |
| Total operating expenses |  | 3515 | 2968 | 9956 | 8580 |
| **Operating profit** |  | **8242** | **7484** | **23028** | **21059** |
| Other income, net | 2.19 | 769 | 512 | 2030 | 1658 |
| Finance cost |  | 80 | 53 | 202 | 150 |
| **Profit before income taxes** |  | **8931** | **7943** | **24856** | **22567** |
| Income tax expense | 2.12 | 2345 | 2121 | 6882 | 6116 |
| **Net profit** |  | **6586** | **5822** | **17974** | **16451** |
| **Other comprehensive income** |  |  |  |  |  |
| *Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Remeasurement of the net defined benefit liability/asset, net |  | 29 | (53) | (17) | (72) |
| Equity instruments through other comprehensive income, net | 2.2 | 1 | - | 8 | 41 |
|  |  | 30 | (53) | (9) | (31) |
| *Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Fair value changes on derivatives designated as cash flow hedge, net |  | (57) | (7) | (43) | 4 |
| Exchange differences on translation of foreign operations |  | 676 | (33) | 715 | 91 |
| Fair value changes on investments, net | 2.2 | 48 | (77) | (298) | 16 |
|  |  | 667 | (117) | 374 | 111 |
| **Total other comprehensive income/(loss), net of tax** |  | **697** | **(170)** | **365** | **80** |
| **Total comprehensive income** |  | **7283** | **5652** | **18339** | **16531** |
| **Profit attributable to:** |  |  |  |  |  |
| Owners of the Company |  | 6586 | 5809 | 17967 | 16425 |
| Non-controlling interests |  | *–* | 13 | 7 | 26 |
|  |  | **6586** | **5822** | **17974** | **16451** |
| **Total comprehensive income attributable to:** |  |  |  |  |  |
| Owners of the Company |  | 7268 | 5640 | 18322 | 16506 |
| Non-controlling interests |  | 15 | 12 | 17 | 25 |
|  |  | **7283** | **5652** | **18339** | **16531** |
| **Earnings per equity share** |  |  |  |  |  |
| Equity shares of par value ![](rupee-symbol.gif)5/- each |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (![](rupee-symbol.gif)) |  | 15.72 | 13.86 | 42.85 | 38.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) |  | 15.70 | 13.83 | 42.79 | 38.88 |
| **Weighted average equity shares used in computing earnings per equity share** | 2.13 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (in shares) |  | 4190550470 | 4190865711 | 4192969201 | 4215373286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (in shares) |  | 4195924920 | 4198923902 | 4199312062 | 4224009404 |

---

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**Infosys Limited and subsidiaries**

*(In ![](rupee-symbol.gif) crore except equity share data)*

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statement of Changes in Equity** | **Number of Shares<sup>(1)</sup>** | **Share capital** | **Share premium** | **Retained earnings** | **Other reserves<sup>(2)</sup>** | **Capital redemption reserve** | **Other components of equity** | **Cash flow hedge reserve** | **Total equity attributable to equity holders of the Company** | **Non-controlling interest** | **Total equity** |
| **Balance as at April 1, 2021** | **4245146114** | **2124** | **993** | **65397** | **6385** | **111** | **1331** | **10** | **76351** | **431** | **76782** |
| **Changes in equity for the nine months ended December 31, 2021** |  |  |  |  |  |  |  |  |  |  |  |
| Net profit | *–* | *–* | *–* | 16425 | *–* | *–* | *–* | *–* | 16425 | 26 | 16451 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | (72) | *–* | (72) | *–* | (72) |
| Fair value changes on derivatives designated as Cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 4 | 4 | *–* | 4 |
| Exchange differences on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | 92 | *–* | 92 | (1) | 91 |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | 41 | *–* | 41 | *–* | 41 |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | 16 | *–* | 16 | *–* | 16 |
| **Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** | **16425** |  ***–*** |  ***–*** | **77** | **4** | **16506** | **25** | **16531** |
| Shares issued on exercise of employee stock options (Refer to note 2.11) | 1824461 | 1 | 13 | *–* | *–* | *–* | *–* | *–* | 14 | *–* | 14 |
| Buyback of equity shares (Refer to note 2.18)<sup>\*\*</sup> | (55807337) | (28) | (640) | (10425) | *–* | *–* | *–* | *–* | (11093) | *–* | (11093) |
| Transaction cost relating to buyback\* | *–* | *–* | *–* | (26) | *–* | *–* | *–* | *–* | (26) | *–* | (26) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | (28) | *–* | 28 | *–* | *–* | *–* | *–* | *–* |
| Employee stock compensation expense (Refer to note 2.11) | *–* | *–* | 285 | *–* | *–* | *–* | *–* | *–* | 285 | *–* | 285 |
| Income tax benefit arising on exercise of stock options (Refer to note 2.12) | *–* | *–* | 19 | *–* | *–* | *–* | *–* | *–* | 19 | *–* | 19 |
| Transfer on account of options not exercised | *–* | *–* | (1) | 1 | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred to other reserves | *–* | *–* | *–* | (2244) | 2244 | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred from other reserves on utilization | *–* | *–* | *–* | 633 | (633) | *–* | *–* | *–* | *–* | *–* | *–* |
| Dividends paid to non controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (79) | (79) |
| Dividends<sup>#</sup> | *–* | *–* | *–* | (12655) | *–* | *–* | *–* | *–* | (12655) | *–* | (12655) |
| **Balance as at December 31, 2021** | **4191163238** | **2097** | **669** | **57078** | **7996** | **139** | **1408** | **14** | **69401** | **377** | **69778** |

---

**Infosys Limited and subsidiaries**

*(In ![](rupee-symbol.gif) crore except equity share data)*

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statement of Changes in Equity** | **Number of Shares<sup>(1)</sup>** | **Share capital** | **Share premium** | **Retained earnings** | **Other reserves<sup>(2)</sup>** | **Capital redemption reserve** | **Other components of equity** | **Cash flow hedge reserve** | **Total equity attributable to equity holders of the Company** | **Non-controlling interest** | **Total equity** |
| **Balance as at April 1, 2022** | **4193012929** | **2098** | **827** | **62423** | **8339** | **139** | **1522** | **2** | **75350** | **386** | **75736** |
| Impact on adoption of amendment to IAS 37<sup>##</sup> | *–* | *–* | *–* | (19) | *–* | *–* | *–* | *–* | (19) | *–* | (19) |
|  | **4193012929** | **2098** | **827** | **62404** | **8339** | **139** | **1522** | **2** | **75331** | **386** | **75717** |
| **Changes in equity for the nine months ended December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |
| Net profit | *–* | *–* | *–* | 17967 | *–* | *–* | *–* | *–* | 17967 | 7 | 17974 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | (17) | *–* | (17) | *–* | (17) |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | 8 | *–* | 8 | *–* | 8 |
| Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (43) | (43) | *–* | (43) |
| Exchange differences on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | 705 | *–* | 705 | 10 | 715 |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | (298) | *–* | (298) | *–* | (298) |
| **Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** | **17967** |  ***–*** |  ***–*** | **398** | **(43)** | **18322** | **17** | **18339** |
| Shares issued on exercise of employee stock options (Refer to note 2.11) | 2499692 | 1 | 22 | *–* | *–* | *–* | *–* | *–* | 23 | *–* | 23 |
| Buyback of equity shares (Refer to note 2.18)<sup>\*\*</sup> | (25164000) | (13) | (332) | (5820) | *–* | *–* | *–* | *–* | (6165) | *–* | (6165) |
| Transaction cost relating to buyback\* | *–* | *–* | (17) | (1) | *–* | *–* | *–* | *–* | (18) | *–* | (18) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | (11) | *–* | 11 | *–* | *–* | *–* | *–* | *–* |
| Transferred on account of options not exercised | *–* | *–* | (2) | 2 | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Employee stock compensation expense (Refer to note 2.11) | *–* | *–* | 382 | *–* | *–* | *–* | *–* | *–* | 382 | *–* | 382 |
| Income tax benefit arising on exercise of stock options (Refer to note 2.12) | *–* | *–* | 49 | *–* | *–* | *–* | *–* | *–* | 49 | *–* | 49 |
| Transferred to other reserves | *–* | *–* | *–* | (2575) | 2575 | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred from other reserves on utilization | *–* | *–* | *–* | 869 | (869) | *–* | *–* | *–* | *–* | *–* | *–* |
| Dividends paid to non controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (22) | (22) |
| Dividends<sup>#</sup> | *–* | *–* | *–* | (13632) | *–* | *–* | *–* | *–* | (13632) | *–* | (13632) |
| **Balance as at December 31, 2022** | **4170348621** | **2086** | **929** | **59203** | **10045** | **150** | **1920** | **(41)** | **74292** | **381** | **74673** |

---

*\** *net of tax*

*\*\** *Including tax on buyback of ![](rupee-symbol.gif)1,165 crore and ![](rupee-symbol.gif)1,893 crore for the nine months ended December 31, 2022 and December 31, 2021 respectively.*

*#* *net of treasury shares*

*<sup>##</sup>* *Impact on account of adoption of amendment to IAS 37 Provisions, Contingent Liabilities and Contingents Assets*

*<sup>(1)</sup>* *excludes treasury shares of 12,568,222 as at December 31, 2022, 13,725,712 as at April 1, 2022, 14,454,720 as at December 31, 2021, and 15,514,732 as at April 1, 2021, held by consolidated trust.*

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

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**Infosys Limited and subsidiaries**

**Condensed Consolidated Statement of Cash Flows**

**Accounting Policy**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Particulars** | **Note** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** |
| **Operating activities:** |  |  |  |
| Net Profit |  | 17974 | 16451 |
| **Adjustments to reconcile net profit to net cash provided by operating activities:** |  |  |  |
| Depreciation and amortization |  | 3104 | 2586 |
| Income tax expense | 2.12 | 6882 | 6116 |
| Finance cost |  | 202 | 150 |
| Interest and dividend income |  | (847) | (577) |
| Exchange differences on translation of assets and liabilities, net |  | 373 | 31 |
| Impairment loss recognised/(reversed) under expected credit loss model |  | 197 | 141 |
| Stock compensation expense |  | 386 | 302 |
| Other adjustments |  | 689 | 143 |
| **Changes in working capital** |  |  |  |
| Trade receivables and unbilled revenue |  | (7350) | (6077) |
| Prepayments and other assets |  | (2498) | (1182) |
| Trade payables |  | 644 | 1118 |
| Unearned revenue |  | 789 | 2097 |
| Other liabilities and provisions |  | 2474 | 3031 |
| **Cash generated from operations** |  | **23019** | **24330** |
| Income taxes paid |  | (6615) | (5763) |
| **Net cash generated by operating activities** |  | **16404** | **18567** |
| **Investing activities:** |  |  |  |
| Expenditure on property, plant and equipment and intangibles |  | (1805) | (1533) |
| Deposits placed with corporation |  | (904) | (786) |
| Redemption of deposits placed with Corporation |  | 671 | 629 |
| Interest and dividend received |  | 777 | 629 |
| Payment for acquisition of business, net of cash acquired | 2.10 | (910) | *–* |
| Payment of contingent consideration pertaining to acquisition of business |  | (60) | (53) |
| Escrow and other deposits pertaining to Buyback |  | (592) | (420) |
| Redemption of escrow and other deposits pertaining to Buyback |  | *–* | 420 |
| Payments to acquire Investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities |  | (1831) | (3516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units |  | (54567) | (39805) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | (6794) | (1473) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | (2338) | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments |  | (18) | (24) |
| Proceeds on sale of investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities |  | 99 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities |  | 2190 | 3528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units |  | 53546 | 38903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 7605 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | 1300 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments |  | *–* | 9 |
| Other payments |  | *–* | (22) |
| Other receipts |  | 57 | 53 |
| **Net cash (used)/generated in investing activities** |  | **(3574)** | **(2961)** |
| **Financing activities:** |  |  |  |
| Payment of lease liabilities |  | (866) | (644) |
| Payment of dividends |  | (13633) | (12655) |
| Payment of dividends to non-controlling interests of subsidiary |  | (22) | (79) |
| Other payments |  | (360) | (22) |
| Other receipts |  | 121 | 209 |
| Buyback of equity shares including transaction costs and tax on buyback |  | (3928) | (11125) |
| Shares issued on exercise of employee stock options |  | 23 | 14 |
| **Net cash used in financing activities** |  | **(18665)** | **(24302)** |
| Net increase/(decrease) in cash and cash equivalents |  | (5835) | (8696) |
| Effect of exchange rate changes on cash and cash equivalents |  | (50) | (75) |
| Cash and cash equivalents at the beginning of the period | 2.1 | 17472 | 24714 |
| **Cash and cash equivalents at the end of the period** | 2.1 | **11587** | **15943** |
| **Supplementary information:** |  |  |  |
| Restricted cash balance | 2.1 | 384 | 490 |

---

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**Overview and Notes to the Interim Condensed Consolidated Financial Statements**

**1. Overview**

**1.1 Company overview**

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

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

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

The Group's interim condensed consolidated financial statements are approved for issue by the Company's Board of Directors on January 12, 2023.

**1.2 Basis of preparation of financial statements**

These interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on accrual basis except for certain financial instruments which have been measured at fair values. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's consolidated financial statements under IFRS in Indian rupee for the year ended March 31, 2022. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

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

**1.3 Basis of consolidation**

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

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

**1.4 Use of estimates and judgments**

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

**1.5 Critical accounting estimates and judgments**

**a. Revenue recognition** 

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

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

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

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

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

**b. Income taxes**

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

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

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

**c. Business combinations and intangible assets**

Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by Management (Refer to Note 2.10)*.*

**d. Property, plant and equipment** 

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

**e. Impairment of Goodwill**

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

The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins. (Refer to note 2.9)

**1.6 Recent accounting pronouncements** 

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

---

| | |
|:---|:---|
| Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors | Definition of Accounting Estimates |
| Amendments to IAS 1 Presentation of Financial Statements | Disclosure of Accounting Policies |
| Amendments to IAS 12 Income Taxes | Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
| Amendments to IFRS 16, Leases | Lease Liability in a Sale and Leaseback |

---

**Amendments to IAS 8**

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

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

**Amendments to IAS 1**

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

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

**Amendments to IAS 12**

On May 7, 2021, International Accounting Standards Board (IASB) has issued amendment to IAS 12 Income Taxes which narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

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

**Amendments to IFRS 16**

On September 22, 2022, International Accounting Standards Board (IASB) has issued amendments to IFRS 16 Leases, which added requirements explaining the subsequent measurement for a sale and leaseback transaction. These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction.

The effective date for the adoption of this amendment is annual reporting periods beginning on or after January 1, 2024, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its condensed consolidated financial statements.

**2. Notes to the Interim Condensed Consolidated Financial Statements**

**2.1 Cash and cash equivalents** 

Cash and cash equivalents consist of the following:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Cash and bank deposits | 9349 | 13942 |
| Deposits with financial institutions | 2238 | 3530 |
| **Total Cash and cash equivalents** | **11587** | **17472** |

---

Cash and cash equivalents as at December 31, 2022 and March 31, 2022 include restricted cash and bank balances of ![](rupee-symbol.gif)384 crore and ![](rupee-symbol.gif)471 crore, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the Company and bank balances held as margin money deposits against guarantees.

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

**2.2 Investments**

The carrying value of the investments are as follows:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **(i) Current Investments** |  |  |
| **Amortized Cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 358 | 221 |
| **Fair Value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | 3165 | 2012 |
| **Fair Value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted Debt Securities | 1379 | 1011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Papers | 1064 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of Deposit | 2764 | 3429 |
| **Total current investments** | **8730** | **6673** |
| **(ii) Non-current Investments** |  |  |
| **Amortized Cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 1757 | 1901 |
| **Fair Value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 10256 | 11373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted equity and preference securities | 215 | 194 |
| **Fair Value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted Preference securities | *–* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted compulsorily convertible debentures | *–* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others<sup>(1)</sup> | 158 | 152 |
| **Total non-current investments** | **12386** | **13651** |
| **Total investments** | **21116** | **20324** |
| Investments carried at amortized cost | 2115 | 2122 |
| Investments carried at fair value through other comprehensive income | 15678 | 16007 |
| Investments carried at fair value through profit or loss | 3323 | 2195 |

---

<sup>(1)</sup> Uncalled capital commitments outstanding as at December 31, 2022 and March 31, 2022 was ![](rupee-symbol.gif)94 crore and ![](rupee-symbol.gif)28 crore, respectively.

Refer to note 2.3 for accounting policies on financial instruments.

**Method of fair valuation:**

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | |
|:---|:---|:---|:---|
| | | **Fair value as at** | **Fair value as at** |
| **Class of investment** | **Method** | **December 31, 2022** | **March 31, 2022** |
| Liquid mutual fund units | Quoted price | 3165 | 2012 |
| Quoted debt securities- carried at amortized cost | Quoted price and market observable inputs | 2319 | 2447 |
| Quoted debt securities- carried at fair value through other comprehensive income | Quoted price and market observable inputs | 11635 | 12384 |
| Commercial Paper | Market observable inputs | 1064 | *–* |
| Certificates of Deposit | Market observable inputs | 2764 | 3429 |
| Unquoted equity and preference securities - carried at fair value through other comprehensive income | Discounted cash flows method, Market multiples method, Option pricing model | 215 | 194 |
| Unquoted equity and preference securities - carried at 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 |
| Others | Discounted cash flows method, Market multiples method, Option pricing model | 158 | 152 |
| **Total** |  | **21320** | **20649** |

---

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

**2.3 Financial instruments**

**Accounting Policy**

**2.3.1 Initial recognition**

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

**2.3.2 Subsequent measurement**

**a. Non-derivative financial instruments**

***(i) Financial assets carried at amortized cost***

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

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

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

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

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

***(iv) Financial liabilities***

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss.

**b. Derivative financial instruments**

The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for 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 constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

**(ii) Cash flow hedge**

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

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

**2.3.3 Derecognition of financial instruments**

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

**2.3.4 Fair value of financial instruments**

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

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

**2.3.5 Impairment** 

The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in condensed consolidated statement of comprehensive income.

**Financial instruments by category**

The carrying value and fair value of financial instruments by categories as at December 31, 2022 were as follows:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets / liabilities at fair value through profit or loss** | **Financial assets / liabilities at fair value through profit or loss** | **Financial assets / liabilities at fair value through OCI** | **Financial assets / liabilities at fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents (Refer to note 2.1) | 11587 | *–* | *–* | *–* | *–* | 11587 | 11587 |
| Investments (Refer to note 2.2) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 3165 | *–* | *–* | 3165 | 3165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 2115 | *–* | *–* | *–* | 11635 | 13750 | 13954*<sup>(1)</sup>* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Papers | *–* | *–* | *–* | *–* | 1064 | 1064 | 1064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | *–* | *–* | *–* | *–* | 2764 | 2764 | 2764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted equity and preference securities | *–* | *–* | *–* | 215 | *–* | 215 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted investment others | *–* | *–* | 158 | *–* | *–* | 158 | 158 |
| Trade receivables | 27660 | *–* | *–* | *–* | *–* | 27660 | 27660 |
| Unbilled revenues (Refer to note 2.17)<sup>(3)</sup> | 8193 | *–* | *–* | *–* | *–* | 8193 | 8193 |
| Prepayments and other assets (Refer to note 2.4) | 5379 | *–* | *–* | *–* | *–* | 5379 | 5311*<sup>(2)</sup>* |
| Derivative financial instruments | *–* | *–* | 74 | *–* | 13 | 87 | 87 |
| **Total** | **54934** |  ***–*** | **3397** | **215** | **15476** | **74022** | **74158** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables | 4788 | *–* | *–* | *–* | *–* | 4788 | 4788 |
| Lease liabilities | 7720 | *–* | *–* | *–* | *–* | 7720 | 7720 |
| Derivative financial instruments | *–* | *–* | 192 | *–* | 33 | 225 | 225 |
| Financial liability under option arrangements <br> (Refer to note 2.5) | *–* | *–* | 671 | *–* | *–* | 671 | 671 |
| Other liabilities including contingent consideration<br> (Refer to note 2.5) | 17942 | *–* | 94 | *–* | *–* | 18036 | 18036 |
| **Total** | **30450** |  ***–*** | **957** |  ***–*** | **33** | **31440** | **31440** |

---

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on quoted debt securities carried at amortized cost of ![](rupee-symbol.gif)68 crore.*

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

The carrying value and fair value of financial instruments by categories as at March 31, 2022 were as follows:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/liabilities at fair value through OCI** | **Financial assets/liabilities at fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents (Refer to note 2.1) | 17472 | *–* | *–* | *–* | *–* | 17472 | 17472 |
| Investments (Refer to note 2.2) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 2012 | *–* | *–* | 2012 | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quoted debt securities | 2122 | *–* | *–* | *–* | 12384 | 14506 | 14831*<sup>(1)</sup>* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | *–* | *–* | *–* | *–* | 3429 | 3429 | 3429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted equity and preference securities | *–* | *–* | 24 | 194 | *–* | 218 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted compulsorily convertible debentures | *–* | *–* | 7 | *–* | *–* | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unquoted investments others | *–* | *–* | 152 | *–* | *–* | 152 | 152 |
| Trade receivables | 22698 | *–* | *–* | *–* | *–* | 22698 | 22698 |
| Unbilled revenue (Refer to note 2.17)<sup>(3)</sup> | 6354 | *–* | *–* | *–* | *–* | 6354 | 6354 |
| Prepayments and other assets (Refer to note 2.4) | 3972 | *–* | *–* | *–* | *–* | 3972 | 3881*<sup>(2)</sup>* |
| Derivative financial instruments | *–* | *–* | 123 | *–* | 20 | 143 | 143 |
| **Total** | **52618** |  ***–*** | **2318** | **194** | **15833** | **70963** | **71197** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables | 4134 | *–* | *–* | *–* | *–* | 4134 | 4134 |
| Lease liabilities | 5474 | *–* | *–* | *–* | *–* | 5474 | 5474 |
| Derivative financial instruments | *–* | *–* | 58 | *–* | 3 | 61 | 61 |
| Financial liability under option arrangements <br> (Refer to note 2.5) | *–* | *–* | 655 | *–* | *–* | 655 | 655 |
| Other liabilities including contingent consideration (Refer to note 2.5) | 15061 | *–* | 123 | *–* | *–* | 15184 | 15184 |
| **Total** | **24669** |  ***–*** | **836** |  ***–*** | **3** | **25508** | **25508** |

---

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on quoted debt securities carried at amortized cost of ![](rupee-symbol.gif)91 crore.*

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

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

**Fair value hierarchy**

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

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

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

The following table presents fair value hierarchy of assets and liabilities as at December 31, 2022:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As at December 31, 2022** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
| **Particulars** | | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in liquid mutual fund units (Refer to note 2.2) | 3165 | 3165 | *–* | *–* |
| Investments in quoted debt securities (Refer to note 2.2) | 13954 | 10536 | 3418 | *–* |
| Investments in unquoted equity and preference securities (Refer to note 2.2) | 215 | *–* | *–* | 215 |
| Investments in certificates of deposits (Refer to note 2.2) | 2764 | *–* | 2764 | *–* |
| Investments in commercial paper (Refer to note 2.2) | 1064 | *–* | 1064 | *–* |
| Investments in unquoted investments others (Refer to note 2.2) | 158 | *–* | *–* | 158 |
| Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts | 87 | *–* | 87 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts | 225 | *–* | 225 | *–* |
| Financial liability under option arrangements (Refer to note 2.5) | 671 | *–* | *–* | 671 |
| Liability towards contingent consideration (Refer to note 2.5)\* | 94 | *–* | *–* | 94 |

---

*\** *Discount rate pertaining to contingent consideration ranges from 9% to 14%*

 

During the nine months ended December 31, 2022, quoted debt securities of ![](rupee-symbol.gif)974 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of ![](rupee-symbol.gif)2,688 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2022:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As at March 31, 2022** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
| **Particulars** | | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in liquid mutual fund units (Refer to note 2.2) | 2012 | 2012 | *–* | *–* |
| Investments in quoted debt securities (Refer to note 2.2) | 14831 | 13042 | 1789 | *–* |
| Investments in unquoted equity and preference securities (Refer to note 2.2) | 218 | *–* | *–* | 218 |
| Investments in certificates of deposits (Refer to note 2.2) | 3429 | *–* | 3429 | *–* |
| Investments in unquoted compulsorily convertible debentures (Refer to note 2.2) | 7 | *–* | *–* | 7 |
| Investments in unquoted investments others (Refer to note 2.2) | 152 | *–* | *–* | 152 |
| Derivative financial instruments- gain on outstanding foreign exchange forward and option contracts | 143 | *–* | 143 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments- loss on outstanding foreign exchange forward and option contracts | 61 | *–* | 61 | *–* |
| Financial liability under option arrangements (Refer to note 2.5) | 655 | *–* | *–* | 655 |
| Liability towards contingent consideration (Refer to note 2.5)\* | 123 | *–* | *–* | 123 |

---

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

 

During the year ended March 31, 2022, quoted debt securities of ![](rupee-symbol.gif)576 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of ![](rupee-symbol.gif)965 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, quoted debt securities, certificates of deposit, quoted bonds issued by government and quasi government organizations. The Group invests after considering counterparty risks based on multiple criteria including Tier I Capital, Capital Adequacy Ratio, credit rating, profitability, NPA levels and deposit base of banks and financial institutions. These risks are monitored regularly as per Group's risk management program.

**2.4 Prepayments and other assets**

Prepayments and other assets consist of the following:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| Rental deposits | 38 | 58 |
| Security deposits | 10 | 7 |
| Loans to employees | 278 | 248 |
| Prepaid expenses*<sup>(1)</sup>* | 2784 | 1996 |
| Interest accrued and not due | 382 | 362 |
| Withholding taxes and others*<sup>(1)</sup>* | 2913 | 1941 |
| Advance payments to vendors for supply of goods*<sup>(1)</sup>* | 90 | 193 |
| Deposit with corporations\* | 2348 | 2177 |
| Escrow and other deposits pertaining to buyback (refer to note 2.18) \*\* | 592 |  |
| Deferred contract cost*<sup>(1)#</sup>* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 954 | 858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 165 | 91 |
| Net investment in sublease of right of use asset | 53 | 50 |
| Other non financial assets *<sup>(1)</sup>* | 342 | 325 |
| Other financial assets | 264 | 271 |
| **Total Current prepayment and other assets** | **11213** | **8577** |
| **Non-current** |  |  |
| Loans to employees | 44 | 34 |
| Deposit with corporations\* | 95 | 33 |
| Rental deposits | 226 | 186 |
| Security deposits | 46 | 47 |
| Withholding taxes and others*<sup>(1)</sup>* | 685 | 674 |
| Deferred contract cost*<sup>(1)</sup>*<sup>#</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 186 | 593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 548 | 309 |
| Prepaid expenses*<sup>(1)</sup>* | 147 | 99 |
| Net investment in sublease of right of use asset | 320 | 322 |
| Defined benefit plan assets*<sup>(1)</sup>* | 20 | 20 |
| Other financial assets | 683 | 177 |
| **Total Non- current prepayment and other assets** | **3000** | **2494** |
| **Total prepayment and other assets** | **14213** | **11071** |
| **Financial assets in prepayments and other assets** | **5379** | **3972** |

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*<sup>(1)</sup>* *Non financial assets*

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

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

\*\* Includes ![](rupee-symbol.gif)240 crore towards shares purchased but not settled as of December 31, 2022

---

| | |
|:---|:---|
| <sup>#</sup> | 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 transferred to the Group in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Group has entered into financing arrangements with a third party for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to ![](rupee-symbol.gif)747 crore. During the nine months ended December 31, 2022, ![](rupee-symbol.gif)38 crore was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction (Refer to note 2.5) |

---

**2.5 Other liabilities**

Other liabilities comprise the following:

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| Accrued compensation to employees | 3536 | 4061 |
| Accrued expenses | 7841 | 7476 |
| Withholding taxes and others<sup>(1)</sup> | 3393 | 2834 |
| Retention money | 14 | 13 |
| Liabilities of controlled trusts | 211 | 211 |
| Deferred income - government grants<sup>(1)</sup> | 11 | 11 |
| Accrued defined benefit liability <sup>(1)</sup> | 4 | 5 |
| Liability towards contingent consideration | 94 | 67 |
| Capital Creditors | 388 | 431 |
| Financial liability relating to buyback \* (Refer to note 2.18) | 1616 | *–* |
| Tax on buyback <sup>(1)</sup> (Refer to note 2.20) | 643 | *–* |
| Other non-financial liabilities <sup>(1)</sup> | 3 | 4 |
| Other financial liabilities<sup>#</sup> | 2522 | 1335 |
| Financial liability under option arrangements | 671 | *–* |
| **Total current other liabilities** | **20947** | **16448** |
| **Non-current** |  |  |
| Liability towards contingent consideration | *–* | 56 |
| Accrued expenses | 1496 | 946 |
| Accrued defined benefit liability <sup>(1)</sup> | 474 | 367 |
| Accrued compensation to employees | 8 | 8 |
| Deferred income - government grants<sup>(1)</sup> | 63 | 64 |
| Deferred income<sup>(1)</sup> | 7 | 9 |
| Other financial liabilities<sup>#</sup> | 310 | 580 |
| Other non-financial liabilities<sup>(1)</sup> | 7 | 11 |
| Financial liability under option arrangements | *–* | 655 |
| **Total non-current other liabilities** | **2365** | **2696** |
| **Total other liabilities** | **23312** | **19144** |
| Financial liabilities included in other liabilities | 18707 | 15839 |
| Financial liability towards contingent consideration on an undiscounted basis | 100 | 132 |

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*<sup>(1)</sup>* *Non financial liabilities*

\* In accordance with IAS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at December 31, 2022 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (refer to note 2.18). The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.

---

| | |
|:---|:---|
| <sup>#</sup> | Deferred contract cost (Refer to note 2.4) 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 transferred to the Group in accordance with IFRS 15 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Group has entered into financing arrangements with a third party for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to ![](rupee-symbol.gif)747 crore. During the nine months ended December 31, 2022, ![](rupee-symbol.gif)38 crore was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction. |

---

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

**2.6 Provisions and other contingencies**

**Accounting Policy**

**Provisions**

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

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not 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.

**Post sales client support**

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

**Onerous contracts**

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract.

Provisions comprise the following:

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Provision for post sales client support and other provisions | 1417 | 975 |
| | **1,417** | **975** |

---

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

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

As at December 31, 2022 and March 31, 2022 claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities - Refer to note 2.12) amounted to ![](rupee-symbol.gif)691 crore and ![](rupee-symbol.gif)640 crore respectively.

**Legal proceedings**

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

**2.7 Property, plant and equipment**

**Accounting Policy**

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

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

---

*<sup>(1)</sup>* *Includes solar plant with a useful life of 20 years*

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

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

**Impairment**

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

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

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2022** | **1429** | **11328** | **5050** | **8897** | **3328** | **44** | **30076** |
| Additions | *–* | 165 | 132 | 348 | 120 | *–* | 765 |
| Deletions\* | *–* | *–* | (7) | (393) | (18) | *–* | (418) |
| Translation difference | *–* | 37 | 9 | 43 | 25 | *–* | 114 |
| **Gross carrying value as at December 31, 2022** | **1429** | **11530** | **5184** | **8895** | **3455** | **44** | **30537** |
| **Accumulated depreciation as at October 1, 2022** |  ***–*** | **(4308)** | **(3864)** | **(6360)** | **(2587)** | **(38)** | **(17157)** |
| Depreciation | *–* | (109) | (119) | (343) | (93) | (1) | (665) |
| Accumulated depreciation on deletions\* | *–* | *–* | 7 | 392 | 17 | *–* | 416 |
| Translation difference | *–* | (8) | (8) | (28) | (20) | *–* | (64) |
| **Accumulated depreciation as at December 31, 2022** |  ***–*** | **(4425)** | **(3984)** | **(6339)** | **(2683)** | **(39)** | **(17470)** |
| Capital work-in progress as at October 1, 2022 |  |  |  |  |  |  | 483 |
| **Carrying value as at October 1, 2022** | **1429** | **7020** | **1186** | **2537** | **741** | **6** | **13402** |
| Capital work-in progress as at December 31, 2022 |  |  |  |  |  |  | 350 |
| **Carrying value as at December 31, 2022** | **1429** | **7105** | **1200** | **2556** | **772** | **5** | **13417** |

---

Following are the changes in the carrying value of property, plant and equipment for the three months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2021** | **1410** | **11047** | **5142** | **7834** | **3155** | **44** | **28632** |
| Additions | 18 | 60 | 80 | 338 | 30 | *–* | 526 |
| Deletions\* | *–* | *–* | (57) | (138) | (33) | *–* | (228) |
| Translation difference | *–* | 16 | 3 | (1) | 3 | *–* | 21 |
| **Gross carrying value as at December 31, 2021** | **1428** | **11123** | **5168** | **8033** | **3155** | **44** | **28951** |
| **Accumulated depreciation as at October 1, 2021** |  ***–*** | **(3884)** | **(3795)** | **(5693)** | **(2312)** | **(35)** | **(15719)** |
| Depreciation |  ***–*** | (105) | (110) | (274) | (83) | (1) | (573) |
| Accumulated depreciation on deletions\* |  ***–*** | *–* | 35 | 139 | 25 | *–* | 199 |
| Translation difference |  ***–*** | (4) | *–* | (2) | (3) | *–* | (9) |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3993)** | **(3870)** | **(5830)** | **(2373)** | **(36)** | **(16102)** |
| Capital work-in progress as at October 1, 2021 |  |  |  |  |  |  | 509 |
| **Carrying value as at October 1, 2021** | **1410** | **7163** | **1347** | **2141** | **843** | **9** | **13422** |
| Capital work-in progress as at December 31, 2021 |  |  |  |  |  |  | 495 |
| **Carrying value as at December 31, 2021** | **1428** | **7130** | **1298** | **2203** | **782** | **8** | **13344** |

---

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2022:

 

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2022** | **1429** | **11224** | **4950** | **8527** | **3201** | **44** | **29375** |
| Additions - Business Combination (Refer to Note 2.10) |  ***–*** |  ***–*** | 5 | 6 | 3 |  ***–*** | 14 |
| Additions | *–* | 308 | 267 | 1016 | 283 | 1 | 1875 |
| Deletions\* | *–* | *–* | (43) | (686) | (49) | (1) | (779) |
| Translation difference | *–* | (2) | 5 | 32 | 17 | *–* | 52 |
| **Gross carrying value as at December 31, 2022** | **1429** | **11530** | **5184** | **8895** | **3455** | **44** | **30537** |
| **Accumulated depreciation as at April 1, 2022** |  ***–*** | **(4100)** | **(3677)** | **(6034)** | **(2452)** | **(37)** | **(16300)** |
| Depreciation | *–* | (325) | (345) | (968) | (266) | (3) | (1907) |
| Accumulated depreciation on deletions\* | *–* | *–* | 42 | 685 | 49 | 1 | 777 |
| Translation difference | *–* | *–* | (4) | (22) | (14) | *–* | (40) |
| **Accumulated depreciation as at December 31, 2022** |  ***–*** | **(4425)** | **(3984)** | **(6339)** | **(2683)** | **(39)** | **(17470)** |
| Capital work-in progress as at April 1, 2022 |  |  |  |  |  |  | 504 |
| **Carrying value as at April 1, 2022** | **1429** | **7124** | **1273** | **2493** | **749** | **7** | **13579** |
| Capital work-in progress as at December 31, 2022 |  |  |  |  |  |  | 350 |
| **Carrying value as at December 31, 2022** | **1429** | **7105** | **1200** | **2556** | **772** | **5** | **13417** |

---

\* During the three months and nine months ended December 31, 2022, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)275 crore (net book value: Nil) and ![](rupee-symbol.gif)504 crore (net book value: Nil), respectively were retired.

Following are the changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land** | **Buildings** | **Plant and machinery** | **Computer equipment** | **Furniture and fixtures** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2021** | **1397** | **10565** | **4963** | **7639** | **3043** | **44** | **27651** |
| Additions | 31 | 515 | 266 | 982 | 151 | *–* | 1945 |
| Deletions\* | *–* | *–* | (67) | (595) | (50) | *–* | (712) |
| Translation difference | *–* | 43 | 6 | 7 | 11 | *–* | 67 |
| **Gross carrying value as at December 31, 2021** | **1428** | **11123** | **5168** | **8033** | **3155** | **44** | **28951** |
| **Accumulated depreciation as at April 1, 2021** |  ***–*** | **(3675)** | **(3599)** | **(5636)** | **(2149)** | **(32)** | **(15091)** |
| Depreciation | *–* | (311) | (313) | (782) | (256) | (4) | (1666) |
| Accumulated depreciation on deletions\* | *–* | *–* | 45 | 595 | 42 | *–* | 682 |
| Translation difference | *–* | (7) | (3) | (7) | (10) | *–* | (27) |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3993)** | **(3870)** | **(5830)** | **(2373)** | **(36)** | **(16102)** |
| Capital work-in progress as at April 1, 2021 |  |  |  |  |  |  | 1063 |
| **Carrying value as at April 1, 2021** | **1397** | **6890** | **1364** | **2003** | **894** | **12** | **13623** |
| Capital work-in progress as at December 31, 2021 |  |  |  |  |  |  | 495 |
| **Carrying value as at December 31, 2021** | **1428** | **7130** | **1298** | **2203** | **782** | **8** | **13344** |

---

\* During the three months and nine months ended December 31, 2021, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)54 crore (net book value: Nil) and ![](rupee-symbol.gif)316 crore (net book value: Nil) respectively, were retired.

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

The Group had contractual commitments for capital expenditure primarily comprising of commitments for infrastructure facilities and computer equipment aggregating to ![](rupee-symbol.gif)740 crore and ![](rupee-symbol.gif)1,245 crore as at December 31, 2022 and March 31, 2022, respectively.

**2.8 Leases**

**Accounting Policy**

**The Group as a lessee**

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

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

As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

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

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

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

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

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

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

**The Group as a lessor** 

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

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

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

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of October 1, 2022** | **622** | **3843** | **14** | **1146** | **5625** |
| Additions<sup>(1)</sup> | *–* | 133 | 2 | 1010 | 1145 |
| Deletions | *–* | (10) | *–* | (97) | (107) |
| Depreciation | (1) | (170) | (2) | (162) | (335) |
| Translation difference | 3 | 51 | 1 | 97 | 152 |
| **Balance as of December 31, 2022** | **624** | **3847** | **15** | **1994** | **6480** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives*

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of October 1, 2021** | **629** | **3738** | **16** | **216** | **4599** |
| Additions<sup>(1)</sup> | *–* | 238 | 2 | 189 | 429 |
| Deletions | *–* | (64) | *–* | (17) | (81) |
| Depreciation | (2) | (167) | (2) | (38) | (209) |
| Translation difference | 2 | (3) | (1) | (3) | (5) |
| **Balance as of December 31, 2021** | **629** | **3742** | **15** | **347** | **4733** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of April 1, 2022** | **628** | **3711** | **16** | **468** | **4823** |
| Additions<sup>(1)</sup> | *–* | 619 | 6 | 2004 | 2629 |
| Deletions | *–* | (12) | *–* | (250) | (262) |
| Depreciation | (4) | (500) | (7) | (320) | (831) |
| Translation difference | *–* | 29 | *–* | 92 | 121 |
| **Balance as of December 31, 2022** | **624** | **3847** | **15** | **1994** | **6480** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of April 1, 2021** | **630** | **3984** | **19** | **161** | **4794** |
| Additions<sup>(1)</sup> | *–* | 302 | 3 | 289 | 594 |
| Deletions | *–* | (70) | *–* | (35) | (105) |
| Depreciation | (5) | (487) | (7) | (67) | (566) |
| Translation difference | 4 | 13 | *–* | (1) | 16 |
| **Balance as of December 31, 2021** | **629** | **3742** | **15** | **347** | **4733** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications*

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

The following is the break-up of current and non-current lease liabilities as of December 31, 2022 and March 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Current lease liabilities | 1143 | 872 |
| Non-current lease liabilities | 6577 | 4602 |
| **Total** | **7720** | **5474** |

---

**2.9 Goodwill and Intangible assets**

**2.9.1 Goodwill**

**Accounting Policy**

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

**Impairment**

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

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

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

 

*(In ![](rupee-symbol.gif) crore)* 

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Carrying value at the beginning | **6195** | **6079** |
| Goodwill on acquisitions *(Refer to note 2.10)* | 630 |  |
| Translation differences | 422 | 116 |
| **Carrying value at the end** | **7247** | **6195** |

---

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

**2.9.2 Intangible assets**

**Accounting Policy**

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

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

**Impairment**

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

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

**2.10 Business combinations**

**Accounting policy**

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

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

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

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

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

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

**Acquisition** 

**Oddity**

On April 20, 2022, Infosys Germany GmbH (a wholly-owned subsidiary of Infosys Consulting Pte. Ltd) acquired 100% voting interests in oddity GmbH, oddity Group Services GmbH, oddity Space GmbH, oddity Jungle GmbH, oddity Code GmbH and oddity Waves GmbH (collectively known as oddity), Germany-based digital marketing, experience, and commerce agency. This acquisition is expected to strengthen the Group's creative, branding and experience design capabilities in Germany and across Europe.

The purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Component** | **Acquiree's carrying amount** | **Fair value adjustments** | **Purchase price allocated** |
| Net Assets<sup>(1)</sup> | 49 | *–* | 49 |
| Intangible assets – |  |  |  |
| Customer contracts and relationships<sup>#</sup> | *–* | 99 | 99 |
| Deferred tax liabilities on intangible assets | *–* | (30) | (30) |
| **Total** | **49** | **69** | **118** |
| Goodwill |  |  | 178 |
| **Total purchase price** |  |  | **296** |

---

*<sup>(1)</sup>* *Includes cash and cash equivalents acquired of ![](rupee-symbol.gif) 21 crore.*

*<sup>#</sup>* *The estimated useful life is around 5 years*

The excess of the purchase consideration paid over the fair value of 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.

The purchase consideration of ![](rupee-symbol.gif) 296 crore includes cash of ![](rupee-symbol.gif) 251 crore and contingent consideration with an estimated fair value of ![](rupee-symbol.gif)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 and discount rate of 12.5%. The undiscounted value of contingent consideration as of December 31, 2022 was ![](rupee-symbol.gif)57 crore. Additionally, this acquisition has 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 the respective years. Bonus is recognized in employee benefit expenses in the Statement of Comprehensive Income over the period of service.

Fair value of trade receivables acquired, is ![](rupee-symbol.gif)39 crore as of acquisition date and as of December 31, 2022 the amounts are fully collected.

The transaction costs of ![](rupee-symbol.gif)4 crore related to the acquisition have been included under administrative expenses in the Condensed Consolidated Statement of Comprehensive Income for the quarter ended June 30, 2022.

**BASE life science A/S**

On September 01, 2022, Infosys Consulting Pte. Ltd (a wholly-owned subsidiary of Infosys Limited) acquired 100% voting interests in BASE life science A/S, a consulting and technology firm in the life sciences industry in Europe. This acquisition is expected to augment the Group's life sciences expertise, scale its digital transformation capabilities with cloud based industry solutions and expand its presence in Nordics region and across Europe.

The purchase price allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Component** | **Acquiree's carrying amount** | **Fair value adjustments** | **Purchase price allocated** |
| Net Assets<sup>(1)</sup> | 54 | *–* | 54 |
| Intangible assets – |  |  |  |
| Customer contracts and relationships<sup>#</sup> | *–* | 175 | 175 |
| Vendor relationships<sup>#</sup> | *–* | 30 | 30 |
| Brand<sup>#</sup> | *–* | 24 | 24 |
| Deferred tax liabilities on intangible assets | *–* | (50) | (50) |
| **Total** | **54** | **179** | **233** |
| Goodwill |  |  | 452 |
| **Total purchase price** |  |  | **685** |

---

*<sup>(1)</sup>* *Includes cash and cash equivalents acquired of ![](rupee-symbol.gif) 5 crore.*

*#* *Useful lives are estimated to be in the range of 1 to 6 years*

The excess of the purchase consideration paid over the fair value of 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.

Additionally, this acquisition has shareholder and employee retention payouts payable to the employees of the acquiree over three years, subject to their continuous employment with the group. Performance and retention bonus is recognised in employee benefit expenses in the Statement of Comprehensive Income over the period of service.

Fair value of trade receivables acquired, is ![](rupee-symbol.gif)72 crore as of acquisition date and as of December 31, 2022 the amounts are substantially collected.

The transaction costs of ![](rupee-symbol.gif)3 crore related to the acquisition have been included under administrative expenses in the Statement of comprehensive income for the quarter ended September 30, 2022.

**2.11 Employees' Stock Option Plans (ESOP)**

**Accounting Policy**

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

**Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan)**

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

**2015 Stock Incentive Compensation Plan (the 2015 Plan):**

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

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

Controlled trust holds 12,568,222 and 13,725,712 shares as at December 31, 2022 and March 31, 2022, respectively under the 2015 plan. Out of these shares 200,000 equity shares each have been earmarked for welfare activities of the employees as at December 31, 2022 and March 31, 2022.

The following is the summary of grants during the three months and nine months ended December 31, 2022 and December 31, 2021:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2019 Plan** | **2019 Plan** | **2019 Plan** | **2019 Plan** | **2015 Plan** | **2015 Plan** | **2015 Plan** | **2015 Plan** |
| | **Three months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** |
| **Particulars**<br>| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| **Equity settled RSUs** |  |  |  |  |  |  |  |  |
| Key Managerial Personnel (KMPs) | *–* | *–* | 176893 | 73962 | *–* | *–* | 287325 | 101697 |
| Employees other than KMPs | 3814 | *–* | 374774 | *–* | 48050 | 25270 | 48050 | 25270 |
| **Total Grants** | **3814** |  ***–*** | **551667** | **73962** | **48050** | **25270** | **335375** | **126967** |

---

***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 a term 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 accordance with the terms of his employment agreement effective till June 30, 2022, approved the grant of performance-based RSUs of fair value of ![](rupee-symbol.gif)13 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement 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, the Board, on July 24, 2022, based on the recommendations of the Nomination and Remuneration Committee:

• Approved the grant of performance-based RSUs (Annual performance equity grant) of fair value of ![](rupee-symbol.gif)21.75 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. Accordingly, 140,228 performance-based RSU's were granted effective August 1, 2022.

• Approved the performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ![](rupee-symbol.gif)2 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement of certain environment, social and governance milestones as determined by the Board. Accordingly, 12,894 performance-based RSU's were granted effective August 1, 2022.

• Approved the performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ![](rupee-symbol.gif)5 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on Company's performance on cumulative relative TSR over the years and as determined by the Board. Accordingly, 32,236 performance-based RSU's were granted effective August 1, 2022.

**Under the 2019 plan:**

The Board, on April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ![](rupee-symbol.gif)10 crore for fiscal 2023 under the 2019 Plan. These RSUs will vest in line with the employment agreement effective till June 30, 2022 based on achievement of certain performance targets. Accordingly, 64,893 performance-based RSU's were granted effective May 2, 2022.

**Other KMPs**

**Under the 2015 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performance-based grant of 5,616 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. The performance based RSUs will vest over three years based on certain performance targets.

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved time based grant of 11,990 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. These RSUs will vest over four years.

**Under the 2019 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance-based grants of 8,000 RSUs to a KMP under the 2019 plan. The grants were made effective May 2, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

On May 21, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance-based grants of 1,04,000 RSUs to other KMPs under the 2019 plan. The grants were made effective June 1, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

**Break-up of employee stock compensation expense**

*(in ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,**  | **Nine months ended December 31,**  |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| *Granted to:* |  |  |  |  |
| KMPs<sup>#</sup> | *–* | 17 | 41 | 51 |
| Employees other than KMPs | 117 | 77 | 345 | 251 |
| Total <sup>(1)</sup> | **117** | **94** | **386** | **302** |
| *<sup>(1)</sup>* Cash settled stock compensation expense included in the above | 5 | 5 | 4 | 17 |

---

*<sup>#</sup>* *Includes reversal of employee stock compensation expense on account of resignation*

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For options granted in** | **For options granted in** | **For options granted in** | **For options granted in** |
| **Particulars** | **Fiscal 2023- <br> Equity Shares-RSU** | **Fiscal 2023- <br> ADS-RSU** | **Fiscal 2022- <br> Equity Shares-RSU** | **Fiscal 2022- <br> ADS-RSU** |
| Weighted average share price (![](rupee-symbol.gif)) / ($ ADS) | 1525 | 19.01 | 1791 | 24.45 |
| Exercise price (![](rupee-symbol.gif))/ ($ ADS) | 5.00 | 0.07 | 5.00 | 0.07 |
| Expected volatility (%) | 23-32 | 28-34 | 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 |
| Weighted average fair value as on grant date (![](rupee-symbol.gif)) / ($ ADS) | 1283 | 14.40 | 1548 | 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.

**2.12 Income Taxes**

**Accounting policy**

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

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

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| **Current taxes** |  |  |  |  |
| Domestic taxes | 1598 | 1471 | 5142 | 4319 |
| Foreign taxes | 597 | 592 | 1885 | 1667 |
|  | **2195** | **2063** | **7027** | **5986** |
| **Deferred taxes** |  |  |  |  |
| Domestic taxes | 242 | 116 | 267 | 339 |
| Foreign taxes | (92) | (58) | (412) | (209) |
|  | **150** | **58** | **(145)** | **130** |
| **Income tax expense** | **2345** | **2121** | **6882** | **6116** |

---

Income tax expense for the three months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)76 crore and provision (net of reversals) of ![](rupee-symbol.gif)7 crore, respectively. Income tax expense for the nine months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)36 crore and ![](rupee-symbol.gif)26 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions.

Deferred income tax for the three months and nine months ended December 31, 2022 and December 31, 2021 substantially relates to origination and reversal of temporary differences.

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

As at December 31, 2022, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ![](rupee-symbol.gif)4,051 crore. As at March 31, 2022, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ![](rupee-symbol.gif)4,001 crore.

The amount paid to statutory authorities against the tax claims amounted to ![](rupee-symbol.gif)6,546 crore and ![](rupee-symbol.gif)5,996 crore as at December 31, 2022 and March 31, 2022, respectively.

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

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

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

**Accounting Policy**

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

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

**2.14 Related party transactions**

Refer to note 2.14 "Related party transactions" in the Company's 2022 Consolidated financial statements under IFRS in Indian rupee for the full names and other details of the Company's subsidiaries and controlled trusts.

**Changes in Subsidiaries**

During the nine months ended December 31, 2022, the following are the changes in the subsidiaries:

- 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 effect from April 1, 2022.

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH ("Kristall")) (a wholly owned subsidiary of 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 along with its subsidiary oddity code d.o.o., and oddity GmbH along with its two subsidiaries oddity (Shanghai) Co. Ltd., oddity Limited (Taipei).

- Panaya GmbH renamed as Infosys Financial Services GmbH.

- Infosys Arabia Limited, a majority owned and controlled subsidiary of Infosys Limited is under liquidation.

- Infosys Public Services Canada Inc., a wholly owned subsidiary of Infosys Public Services Inc. was incorporated on July 8, 2022.

On September 1, 2022, Infosys Consulting Pte. Ltd. (a Wholly-owned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S along with its seven subsidiaries BASE life science AG, BASE life science GmbH, BASE life science Ltd., BASE life science S.A.S., BASE life science S.r.l., Innovisor Inc. and BASE life science Inc.

- BASE life science SL., a wholly owned subsidiary of BASE life science A/S was incorporated on September 6, 2022.

- Panaya Germany GmbH, a wholly owned subsidiary of Panaya Inc. was incorporated on December 15, 2022.

**Change in key management personnel**

The following are the changes in the key management personnel:

- Ravi Kumar S resigned effective October 11, 2022

**Transactions with key management personnel**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Salaries and other short term employee benefits to whole-time directors and executive officers<sup>(1) (2)</sup> | 12 | 33 | 86 | 106 |
| Commission and other benefits to non-executive/ independent directors | 5 | 3 | 12 | 8 |
| **Total** | **17** | **36** | **98** | **114** |

---

*<sup>(1)</sup>* *Total employee stock compensation expense for three months ended December 31, 2022 and December 31, 2021, includes a charge of less than a crore and ![](rupee-symbol.gif)17 crore respectively, towards key managerial personnel. For the nine months ended December 31, 2022 and December 31, 2021, includes a charge of ![](rupee-symbol.gif)41 crore and ![](rupee-symbol.gif)51 crore respectively, towards key managerial personnel. (Refer to note 2.11). Stock compensation expense for the three months and nine months ended December 31, 2022 include reversal of expense on account of resignation.*

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

**2.15 Segment reporting**

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

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

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

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

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

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

**2.15.1 Business segments**

**Three months ended December 31, 2022 and December 31, 2021**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services<sup>(1)</sup>** | **Retail<sup>(2)</sup>** | **Communication<sup>(3)</sup>** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi Tech** | **Life Sciences<sup>(4)</sup>** | **All other segments<sup>(5)</sup>** | **Total** |
| Revenue | 11235 | 5480 | 4710 | 4957 | 5099 | 3095 | 2695 | 1047 | 38318 |
|  | *10023* | *4612* | *3979* | *3740* | *3598* | *2567* | *2383* | *965* | *31867* |
| Identifiable operating expenses | 6549 | 2837 | 2858 | 2594 | 3206 | 1786 | 1580 | 746 | 22156 |
|  | *5659* | *2234* | *2356* | *2012* | *2341* | *1522* | *1406* | *661* | *18191* |
| Allocated expenses | 2008 | 997 | 810 | 906 | 858 | 496 | 431 | 289 | 6795 |
|  | *1630* | *748* | *660* | *653* | *624* | *409* | *337* | *232* | *5293* |
| **Segment Profit** | **2678** | **1646** | **1042** | **1457** | **1035** | **813** | **684** | **12** | **9367** |
|  | *2734* | *1630* | *963* | *1075* | *633* | *636* | *640* | *72* | *8383* |
| Unallocable expenses |  |  |  |  |  |  |  |  | 1125 |
|  |  |  |  |  |  |  |  |  | *899* |
| **Operating profit** |  |  |  |  |  |  |  |  | 8242 |
|  |  |  |  |  |  |  |  |  | *7484* |
| Other income, net *(Refer to note 2.19)* |  |  |  |  |  |  |  |  | 769 |
|  |  |  |  |  |  |  |  |  | *512* |
| Finance Cost |  |  |  |  |  |  |  |  | 80 |
|  |  |  |  |  |  |  |  |  | *53* |
| **Profit before income taxes** |  |  |  |  |  |  |  |  | **8931** |
|  |  |  |  |  |  |  |  |  | *7943* |
| Income tax expense |  |  |  |  |  |  |  |  | 2345 |
|  |  |  |  |  |  |  |  |  | *2121* |
| **Net profit** |  |  |  |  |  |  |  |  | **6586** |
|  |  |  |  |  |  |  |  |  | *5822* |
| Depreciation and amortization |  |  |  |  |  |  |  |  | **1125** |
|  |  |  |  |  |  |  |  |  | 899 |
| Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  |  ***–*** |
|  |  |  |  |  |  |  |  |  | *–* |

---

*<sup>(1)</sup>* *Financial Services include enterprises in Financial Services and Insurance*

*<sup>(2)</sup>* *Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics*

*<sup>(3)</sup>* *Communication includes enterprises in Communication, Telecom OEM and Media*

*<sup>(4)</sup>* *Life Sciences includes enterprises in Life sciences and Health care*

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

**Nine months ended December 31, 2022 and December 31, 2021**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services<sup>(1)</sup>** | **Retail<sup>(2)</sup>** | **Communication<sup>(3)</sup>** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi Tech** | **Life Sciences<sup>(4)</sup>** | **All other segments<sup>(5)</sup>** | **Total** |
| Revenue | 32945 | 15667 | 13675 | 13714 | 13957 | 8878 | 7404 | 3086 | 109326 |
|  | *28805* | *13118* | *11050* | *10611* | *9520* | *7388* | *6377* | *2496* | *89365* |
| Identifiable operating expenses | 18829 | 8023 | 8488 | 7309 | 9245 | 5225 | 4320 | 2100 | 63539 |
|  | *16317* | *6333* | *6648* | *5632* | *5766* | *4409* | *3619* | *1715* | *50439* |
| Allocated expenses | 5873 | 2883 | 2386 | 2552 | 2500 | 1444 | 1223 | 794 | 19655 |
|  | *4752* | *2170* | *1916* | *1866* | *1772* | *1156* | *959* | *690* | *15281* |
| **Segment Profit** | **8243** | **4761** | **2801** | **3853** | **2212** | **2209** | **1861** | **192** | **26132** |
|  | *7736* | *4615* | *2486* | *3113* | *1982* | *1823* | *1799* | *91* | *23645* |
| Unallocable expenses |  |  |  |  |  |  |  |  | 3104 |
|  |  |  |  |  |  |  |  |  | *2586* |
| **Operating profit** |  |  |  |  |  |  |  |  | 23028 |
|  |  |  |  |  |  |  |  |  | *21059* |
| Other income, net *(Refer to note 2.19)* |  |  |  |  |  |  |  |  | 2030 |
|  |  |  |  |  |  |  |  |  | *1658* |
| Finance Cost |  |  |  |  |  |  |  |  | 202 |
|  |  |  |  |  |  |  |  |  | *150* |
| **Profit before income taxes** |  |  |  |  |  |  |  |  | **24856** |
|  |  |  |  |  |  |  |  |  | *22567* |
| Income tax expense |  |  |  |  |  |  |  |  | 6882 |
|  |  |  |  |  |  |  |  |  | *6116* |
| **Net profit** |  |  |  |  |  |  |  |  | **17974** |
|  |  |  |  |  |  |  |  |  | *16451* |
| Depreciation and amortization |  |  |  |  |  |  |  |  | 3104 |
|  |  |  |  |  |  |  |  |  | 2586 |
| Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  |  ***–*** |
|  |  |  |  |  |  |  |  |  |  ***–*** |

---

*<sup>(1)</sup>* *Financial Services include enterprises in Financial Services and Insurance*

*<sup>(2)</sup>* *Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics*

*<sup>(3)</sup>* *Communication includes enterprises in Communication, Telecom OEM and Media*

*<sup>(4)</sup>* *Life Sciences includes enterprises in Life sciences and Health care*

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

**2.15.2 Significant clients**

No client individually accounted for more than 10% of the revenues for the three months and nine months ended December 31, 2022 and December 31, 2021, respectively.

**2.16 Revenue from Operations**

**Accounting Policy:**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Group presents revenues net of indirect taxes in its Consolidated Statement of Comprehensive Income.

Revenues for the three months and nine months ended December 31, 2022 and December 31, 2021 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Revenue from software services | 35870 | 29766 | 102375 | 83425 |
| Revenue from products and platforms | 2448 | 2101 | 6951 | 5940 |
| **Total revenue from operations** | **38318** | **31867** | **109326** | **89365** |

---

**Disaggregated revenue information**

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

**Three months ended December 31, 2022 and December 31, 2021**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services *<sup>(1)</sup>*** | **Retail*<sup>(2)</sup>*** | **Communication *<sup>(3)</sup>*** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi Tech** | **Life Sciences*<sup>(4)</sup>*** | **Others *<sup>(5)</sup>*** | **Total** |
| **Revenues by Geography<sup>\*</sup>** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | 7219 | 3844 | 2887 | 2712 | 1940 | 2892 | 1975 | 287 | 23756 |
|  | *6310* | *3136* | *2301* | *1951* | *1646* | *2389* | *1725* | *237* | *19695* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | 1882 | 1341 | 976 | 1845 | 2994 | 68 | 684 | 105 | 9895 |
|  | *1724* | *1224* | *973* | *1477* | *1794* | *59* | *627* | *58* | *7936* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | 452 | 19 | 43 | 68 | 26 | 116 | 7 | 196 | 927 |
|  | *491* | *24* | *48* | *36* | *18* | *104* | *6* | *228* | *955* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | 1682 | 276 | 804 | 332 | 139 | 19 | 29 | 459 | 3740 |
|  | *1498* | *228* | *657* | *276* | *140* | *15* | *25* | *442* | *3281* |
| **Total** | **11235** | **5480** | **4710** | **4957** | **5099** | **3095** | **2695** | **1047** | **38318** |
|  |  ***10023*** |  ***4612*** |  ***3979*** |  ***3740*** |  ***3598*** |  ***2567*** |  ***2383*** |  ***965*** |  ***31867*** |
| **Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | 6223 | 3615 | 3150 | 3148 | 3773 | 1984 | 1679 | 531 | 24103 |
|  | 5264 | 2895 | 2437 | 2211 | 2440 | 1503 | 1457 | 444 | *18651* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | 5012 | 1865 | 1560 | 1809 | 1326 | 1111 | 1016 | 516 | 14215 |
|  | 4759 | 1717 | 1542 | 1529 | 1158 | 1064 | 926 | 521 | *13216* |
| **Total** | **11235** | **5480** | **4710** | **4957** | **5099** | **3095** | **2695** | **1047** | **38318** |
|  |  ***10023*** |  ***4612*** |  ***3979*** |  ***3740*** |  ***3598*** |  ***2567*** |  ***2383*** |  ***965*** |  ***31867*** |

---

**Nine months ended December 31, 2022 and December 31, 2021**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services *<sup>(1)</sup>*** | **Retail*<sup>(2)</sup>*** | **Communication *<sup>(3)</sup>*** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi Tech** | **Life Sciences*<sup>(4)</sup>*** | **Others *<sup>(5)</sup>*** | **Total** |
| **Revenues by Geography<sup>\*</sup>** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | 21139 | 10901 | 8324 | 7299 | 5668 | 8288 | 5446 | 816 | 67881 |
|  | *17979* | *8862* | *6080* | *5481* | *4654* | *6885* | *4598* | *694* | *55233* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | 5525 | 3874 | 2829 | 5216 | 7881 | 204 | 1834 | 224 | 27587 |
|  | *5050* | *3524* | *2666* | *4204* | *4554* | *165* | *1672* | *166* | *22001* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | 1416 | 55 | 127 | 163 | 62 | 334 | 20 | 703 | 2880 |
|  | *1362* | *73* | *264* | *103* | *51* | *296* | *21* | *375* | *2545* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | 4865 | 837 | 2395 | 1036 | 346 | 52 | 104 | 1343 | 10978 |
|  | *4414* | *659* | *2040* | *823* | *261* | *42* | *86* | *1261* | *9586* |
| **Total** | **32945** | **15667** | **13675** | **13714** | **13957** | **8878** | **7404** | **3086** | **109326** |
|  |  ***28805*** |  ***13118*** |  ***11050*** |  ***10611*** |  ***9520*** |  ***7388*** |  ***6377*** |  ***2496*** |  ***89365*** |
| **Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | 18142 | 10217 | 9120 | 8536 | 10046 | 5595 | 4601 | 1471 | 67728 |
|  | 15060 | 7934 | 6588 | 6095 | 5732 | 4228 | 3657 | 1009 | *50303* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | 14803 | 5450 | 4555 | 5178 | 3911 | 3283 | 2803 | 1615 | 41598 |
|  | 13745 | 5184 | 4462 | 4516 | 3788 | 3160 | 2720 | 1487 | *39062* |
| **Total** | **32945** | **15667** | **13675** | **13714** | **13957** | **8878** | **7404** | **3086** | **109326** |
|  |  ***28805*** |  ***13118*** |  ***11050*** |  ***10611*** |  ***9520*** |  ***7388*** |  ***6377*** |  ***2496*** |  ***89365*** |

---

*<sup>(1)</sup>* *Financial Services include enterprises in Financial Services and Insurance*

*<sup>(2)</sup>* *Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics*

*<sup>(3)</sup>* *Communication includes enterprises in Communication, Telecom OEM and Media*

*<sup>(4)</sup>* *Life Sciences includes enterprises in Life sciences and Health care*

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

*<sup>\*</sup>* *Geographical revenues is based on the domicile of customer.*

**Digital Services**

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

**Core Services**

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

**Products & platforms**

The Group derives revenues from the sale of products and platforms including Finacle – core banking solution, Edge Suite of products, Panaya platform, Infosys Equinox, Infosys Applied AI, Stater digital platform and Infosys McCamish – insurance platform.

**Trade Receivables and Contract Balances**

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

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

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

Invoicing in excess of earnings are classified as unearned revenue.

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

**2.17 Unbilled Revenue**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Unbilled financial asset *<sup>(1)</sup>* | 8193 | 6354 |
| Unbilled non financial asset *<sup>(2)</sup>* | 6654 | 6155 |
| **Total** | **14847** | **12509** |

---

*<sup>(1)</sup>* Right to consideration is unconditional and is due only after a passage of time.

*<sup>(2)</sup>* Right to consideration is dependent on completion of contractual milestones.

**2.18 Equity**

**Accounting policy**

**Ordinary Shares**

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

**Treasury Shares**

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

**Description of reserves**

**Retained earnings**

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

**Share premium**

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

**Special Economic Zone Re-investment reserve**

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

**Capital Redemption Reserve**

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

**Other components of equity**

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

**Cash flow hedge reserve**

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the condensed consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction.

**2.18.1 Dividend**

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

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

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

*(In ![](rupee-symbol.gif))*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Final dividend for fiscal 2021 | *–* | *–* | *–* | 15.00 |
| Interim dividend for fiscal 2022 | *–* | 15.00 | *–* | 15.00 |
| Final dividend for fiscal 2022 | *–* | *–* | 16.00 | *–* |
| Interim dividend for fiscal 2023 | 16.50 | *–* | 16.50 | *–* |

---

The Board of Directors in their meeting held on April 13, 2022 recommended a final dividend of ![](rupee-symbol.gif)16/- per equity share for the financial year ended March 31, 2022. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 25, 2022 which resulted in a net cash outflow of ![](rupee-symbol.gif)6,711 crore (excluding dividend paid on treasury shares).

The Board of Directors in their meeting held on October 13, 2022 declared an interim dividend of ![](rupee-symbol.gif)16.50/- per equity share which resulted in a net cash outflow of ![](rupee-symbol.gif)6,921 crore, excluding dividend paid on treasury shares.

**2.18.2 Capital allocation policy**

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

**Update on buyback announced in October 2022:**

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 ![](rupee-symbol.gif)9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023. During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

**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 ![](rupee-symbol.gif)9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing Annual General Meeting.

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021.

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period, the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buy back price of ![](rupee-symbol.gif)1,648.53/- per equity share comprising 1.31% of the pre buyback paid-up equity share capital of the Company. The buyback resulted in a cash outflow of ![](rupee-symbol.gif)9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at March 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)28 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of December 31, 2022, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

**2.18.3 Share capital and share premium**

The Company has only one class of shares referred to as equity shares having a par value of ![](rupee-symbol.gif)5/- each. 12,568,222 shares and 13,725,712 shares were held by controlled trust, as at December 31, 2022 and March 31, 2022, respectively.

**2.19 Break-up of expenses and other income, net**

**a. Accounting policy**

**Gratuity and Pensions**

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

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

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

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

**Provident fund**

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

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

**Superannuation**

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

**Compensated absences**

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

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

**Other income, net**

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

**Foreign currency** 

 

*Functional currency*

The functional currency of Infosys, Infosys BPM, EdgeVerve and Skava 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 condensed Consolidated Statement of Comprehensive Income and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate.

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

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

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

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

**Government grants**

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

**Operating Profits**

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

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

**Cost of sales**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Employee benefit costs | 18383 | 14706 | 52649 | 42452 |
| Depreciation and amortization | 1125 | 899 | 3104 | 2586 |
| Travelling costs | 257 | 181 | 776 | 440 |
| Cost of technical sub-contractors | 3343 | 3511 | 10944 | 9019 |
| Cost of software packages for own use | 495 | 273 | 1357 | 951 |
| Third party items bought for service delivery to clients | 2567 | 1560 | 6575 | 3533 |
| Short-term leases (Refer to note 2.8) | 10 | 5 | 25 | 17 |
| Consultancy and professional charges | 32 | 51 | 96 | 105 |
| Communication costs | 86 | 77 | 271 | 226 |
| Repairs and maintenance | 107 | 101 | 310 | 282 |
| Provision for post-sales client support | 130 | 40 | 200 | 75 |
| Others | 26 | 11 | 35 | 40 |
| **Total** | **26561** | **21415** | **76342** | **59726** |

---

**Selling and marketing expenses**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Employee benefit costs | 1264 | 1079 | 3570 | 3209 |
| Travelling costs | 64 | 19 | 200 | 37 |
| Branding and marketing | 226 | 144 | 633 | 359 |
| Short-term leases (Refer to note 2.8) | *–* | 1 | 3 | 3 |
| Communication costs | 3 | 2 | 10 | 7 |
| Consultancy and professional charges | 30 | 53 | 89 | 134 |
| Others | 24 | 27 | 86 | 60 |
| **Total** | **1611** | **1325** | **4591** | **3809** |

---

**Administrative expenses** 

&nbsp;&nbsp;&nbsp;&nbsp;*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Employee benefit costs | 625 | 570 | 1829 | 1667 |
| Consultancy and professional charges | 339 | 416 | 1111 | 1125 |
| Repairs and maintenance | 243 | 198 | 677 | 614 |
| Power and fuel | 47 | 36 | 129 | 100 |
| Communication costs | 94 | 68 | 261 | 208 |
| Travelling costs | 39 | 21 | 123 | 41 |
| Impairment loss recognized/(reversed) under expected credit loss model | 106 | 54 | 197 | 141 |
| Rates and taxes | 74 | 52 | 220 | 180 |
| Insurance charges | 43 | 44 | 129 | 118 |
| Short-term leases (Refer to note 2.8) | 17 | 8 | 40 | 26 |
| Commission to non-whole time directors | 4 | 3 | 11 | 8 |
| Contribution towards Corporate Social Responsibility | 146 | 88 | 320 | 348 |
| Others | 127 | 85 | 318 | 195 |
| **Total** | **1904** | **1643** | **5365** | **4771** |

---

**Other income consists of the following:**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Interest income on financial assets carried at amortized cost | 212 | 203 | 664 | 775 |
| Interest income on financial assets carried at fair value through other comprehensive income | 241 | 140 | 724 | 453 |
| Gain/(loss) on investments carried at fair value through profit or loss | 46 | 35 | 87 | 100 |
| Gain/(loss) on investments carried at fair value through other comprehensive income | *–* | 1 | 1 | 1 |
| Exchange gains / (losses) on forward and options contracts | (363) | 118 | (789) | 174 |
| Exchange gains / (losses) on translation of other assets and liabilities | 552 | (59) | 1153 | (12) |
| Others | 81 | 74 | 190 | 167 |
| **Total** | **769** | **512** | **2030** | **1658** |

---

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

---

| | | |
|:---|:---|:---|
| Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
| Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |

---

## Exhibit 99.9

**Exhibit 99.9**<br> **Ind AS Standalone**

**INFOSYS LIMITED**

***Condensed Standalone Financial Statements<br> under Indian Accounting Standards (Ind AS)<br> for the three months and nine months ended December 31, 2022***

---

| |
|:---|
| &nbsp;&nbsp;**<u>Index</u>** |
| &nbsp;&nbsp;Condensed Balance Sheet |
| &nbsp;&nbsp;Condensed Statement of Profit and Loss |
| &nbsp;&nbsp;Condensed Statement of Changes in Equity |
| &nbsp;&nbsp;Condensed Statement of Cash Flows |
| &nbsp;&nbsp;**Overview and Notes to the Interim Condensed Standalone Financial Statements** |
| &nbsp;&nbsp;**1. Overview** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Company overview |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Basis of preparation of financial statements |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Use of estimates and judgments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Critical accounting estimates and judgements |
| &nbsp;&nbsp;**2. Notes to Interim Condensed Financial Statements** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Property, plant and equipment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Goodwill and intangible assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Leases |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Investments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Loans |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Other financial assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Trade Receivables |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Cash and cash equivalents |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Other assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 Financial instruments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 Equity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Other financial liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 Trade payables |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 Other liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 Provisions |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 Income taxes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 Revenue from operations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 Other income, net |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 Expenses |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 Basic and diluted shares used in computing earnings per equity share |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 Contingent liabilities and commitments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 Related party transactions |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 Segment Reporting |

---

**INDEPENDENT AUDITOR'S REPORT**

**TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED**

**Report on the Audit of the Interim Condensed Standalone Financial Statements** 

**Opinion**

We have audited the accompanying interim condensed standalone financial statements of **INFOSYS LIMITED** (the "Company"), which comprise the Condensed Balance Sheet as at December 31, 2022, the Condensed Statement of Profit and Loss (including Other Comprehensive Income) for the three months and nine months ended on that date, the Condensed Statement of Changes in Equity and the Condensed Statement of Cash Flows for the nine months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed standalone financial statements give a true and fair view in conformity with Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act"), read with relevant rules issued thereunder and other accounting principles generally accepted in India, of the state of affairs of the Company as at December 31, 2022, the profit and total comprehensive income for the three months and nine months ended on that date, changes in equity and its cash flows for the nine months ended on that date.

**Basis for Opinion**

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

**Management's Responsibilities for the Interim Condensed Standalone Financial Statements**

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed standalone financial statements that give a true and fair view of the financial position, financial performance, including total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS 34 and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the interim condensed standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the interim condensed standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's
internal financial controls.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the interim condensed standalone financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the overall presentation, structure and content of the interim condensed standalone financial
statements, including the disclosures, and whether the interim condensed standalone financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

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

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

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

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018) |
| Place: Bengaluru<br> Date: January 12, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRXY7663<br>|

---

`

**INFOSYS LIMITED**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Condensed Balance Sheet as at** | **Note No.** | **December 31, 2022** | **March 31, 2022** |
| **ASSETS** |  |  |  |
| **Non-current assets** |  |  |  |
| Property, plant and equipment | 2.1 | 11383 | 11384 |
| Right-of-use assets | 2.3 | 3538 | 3311 |
| Capital work-in-progress |  | 211 | 411 |
| Goodwill | 2.2 | 211 | 211 |
| Other intangible assets |  | 8 | 32 |
| Financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 2.4 | 23419 | 22869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 2.5 | 43 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 2.6 | 1220 | 727 |
| Deferred tax assets (net) |  | 762 | 970 |
| Income tax assets (net) |  | 5686 | 5585 |
| Other non-current assets | 2.9 | 1850 | 1416 |
| **Total non - current assets** |  | **48331** | **46950** |
| **Current assets** |  |  |  |
| Financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 2.4 | 6577 | 5467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 2.7 | 23206 | 18966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 2.8 | 6474 | 12270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 2.5 | 284 | 219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 2.6 | 8134 | 6580 |
| Other current assets | 2.9 | 10080 | 8935 |
| **Total current assets** |  | **54755** | **52437** |
| **Total assets** |  | **103086** | **99387** |
| **EQUITY AND LIABILITIES** |  |  |  |
| **Equity** |  |  |  |
| Equity share capital | 2.11 | 2091 | 2103 |
| Other equity |  | 64825 | 67203 |
| **Total equity** |  | **66916** | **69306** |
| **LIABILITIES** |  |  |  |
| **Non-current liabilities** |  |  |  |
| Financial liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 2.3 | 3571 | 3228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 2.12 | 1166 | 676 |
| Deferred tax liabilities (net) |  | 689 | 841 |
| Other non-current liabilities | 2.14 | 461 | 360 |
| **Total non - current liabilities** |  | **5887** | **5105** |
| **Current liabilities** |  |  |  |
| Financial liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 2.3 | 680 | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | 2.13 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total outstanding dues of micro enterprises and small enterprises |  | *–* | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total outstanding dues of creditors other than micro enterprises and small enterprises |  | 3077 | 2666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 2.12 | 14012 | 11269 |
| Other current liabilities | 2.14 | 8561 | 7381 |
| Provisions | 2.15 | 1288 | 920 |
| Income tax liabilities (net) |  | 2665 | 2179 |
| **Total current liabilities** |  | **30283** | **24976** |
| **Total equity and liabilities** |  | **103086** | **99387** |

---

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**INFOSYS LIMITED**

(In ![](rupee-symbol.gif) crore except equity share and per equity share data)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Condensed Statement of Profit and Loss for the** | **Note No.** | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
| Revenue from operations | 2.17 | 32389 | 27337 | 93483 | 76514 |
| Other income, net | 2.18 | 1177 | 1013 | 3093 | 2634 |
| **Total income** |  | **33566** | **28350** | **96576** | **79148** |
| **Expenses** |  |  |  |  |  |
| Employee benefit expenses | 2.19 | 16395 | 13275 | 47182 | 38199 |
| Cost of technical sub-contractors |  | 4720 | 4406 | 14545 | 11658 |
| Travel expenses |  | 284 | 195 | 892 | 453 |
| Cost of software packages and others | 2.19 | 1728 | 856 | 4339 | 2120 |
| Communication expenses |  | 132 | 102 | 386 | 312 |
| Consultancy and professional charges |  | 280 | 412 | 975 | 1087 |
| Depreciation and amortization expenses |  | 713 | 631 | 2039 | 1809 |
| Finance cost |  | 41 | 33 | 115 | 97 |
| Other expenses | 2.19 | 978 | 651 | 2417 | 1828 |
| **Total expenses** |  | **25271** | **20561** | **72890** | **57563** |
| **Profit before tax** |  | **8295** | **7789** | **23686** | **21585** |
| Tax expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current tax | 2.16 | 1916 | 1852 | 6261 | 5354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | 2.16 | 169 | 67 | 61 | 175 |
| **Profit for the period** |  | **6210** | **5870** | **17364** | **16056** |
| **Other comprehensive income** |  |  |  |  |  |
| *Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of the net defined benefit liability/asset, net |  | 28 | (52) | (28) | (74) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity instruments through other comprehensive income, net |  | 2 |  | 9 | 41 |
| *Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on derivatives designated as cash flow hedge, net |  | (57) | (7) | (43) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes on investments, net |  | 42 | (67) | (275) | 23 |
| **Total other comprehensive income/ (loss), net of tax** |  | **15** | **(126)** | **(337)** | **(6)** |
| **Total comprehensive income for the period** |  | **6225** | **5744** | **17027** | **16050** |
| **Earnings per equity share** |  |  |  |  |  |
| Equity shares of par value ![](rupee-symbol.gif)5/- each |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (![](rupee-symbol.gif)) |  | 14.77 | 13.96 | 41.28 | 37.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) |  | 14.76 | 13.94 | 41.24 | 37.91 |
| **Weighted average equity shares used in computing earnings per equity share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 2.20 | 4203307369 | 4205532859 | 4206048595 | 4230365220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 2.20 | 4206813168 | 4210226186 | 4210104735 | 4235256684 |

---

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**INFOSYS LIMITED**

**Condensed Statement of Changes in Equity**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | |
| | | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | |
| | | **Capital reserve** | **Capital reserve** | **Capital redemption reserve** | **Securities Premium** | **Retained earnings** | **General reserve** | **Share Options Outstanding Account** | **Special Economic Zone Re-investment reserve *<sup>(1)</sup>*** | **Equity Instruments through other comprehensive income** | **Effective portion of Cash flow hedges** | **Other items of other comprehensive income / (loss)** | |
| **Particulars**<br>| **Equity Share Capital**<br>| **Capital reserve** | **Other <br>reserves *<sup>(2)</sup>*** | | | | | | | | | | **Total equity attributable to equity holders of the Company**<br>|
| **Balance as at April 1, 2021** | **2130** | **54** | **2906** | **111** | **581** | **57518** | **1663** | **372** | **6144** | **169** | **10** | **(127)** | **71531** |
| **Changes in equity for the nine months ended December 31, 2021** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Profit for the period | *–* | *–* | *–* | *–* | *–* | 16056 | *–* | *–* | *–* | *–* | *–* | *–* | 16056 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (74) | (74) |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 41 | *–* | *–* | 41 |
| Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 4 | *–* | 4 |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 23 | 23 |
| **Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **16056** |  ***–*** |  ***–*** |  ***–*** | **41** | **4** | **(51)** | **16050** |
| Buyback of equity shares\*\* | (28) | *–* | *–* | *–* | (640) | (8822) | (1603) | *–* | *–* | *–* | *–* | *–* | (11093) |
| Transaction cost relating to buyback\* | *–* | *–* | *–* | *–* | *–* | *–* | (26) | *–* | *–* | *–* | *–* | *–* | (26) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | 28 | *–* | *–* | (28) | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred to Special Economic Zone Re-investment reserve | *–* | *–* | *–* | *–* | *–* | (2086) | *–* | *–* | 2086 | *–* | *–* | *–* | *–* |
| Transferred from Special Economic Zone Re-investment reserve on utilization | *–* | *–* | *–* | *–* | *–* | 563 | *–* | *–* | (563) | *–* | *–* | *–* | *–* |
| Transferred on account of exercise of stock options *(Refer to note 2.11)* | *–* | *–* | *–* | *–* | 101 | *–* | *–* | (101) | *–* | *–* | *–* | *–* | *–* |
| Transfer on account of options not exercised | *–* | *–* | *–* | *–* | *–* | *–* | 1 | (1) | *–* | *–* | *–* | *–* | *–* |
| Shares issued on exercise of employee stock options *(Refer to note 2.11)* | *–* | *–* | *–* | *–* | 9 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 9 |
| Employee stock compensation expense *(Refer to note 2.11)* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 285 | *–* | *–* | *–* | *–* | 285 |
| Income tax benefit arising on exercise of stock options | *–* | *–* | *–* | *–* | 3 | *–* | *–* | 16 | *–* | *–* | *–* | *–* | 19 |
| Reserves recorded upon business transfer under common control<sup>(3)</sup> | *–* | *–* | (62) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (62) |
| Dividends | *–* | *–* | *–* | *–* | *–* | (12700) | *–* | *–* | *–* | *–* | *–* | *–* | (12700) |
| **Balance as at December 31, 2021** | **2102** | **54** | **2844** | **139** | **54** | **50529** | **7** | **571** | **7667** | **210** | **14** | **(178)** | **64013** |

---

**INFOSYS LIMITED**

**Condensed Statement of Changes in Equity**

 

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | **Other Equity** | |
| | | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Reserves & Surplus** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | |
| | | **Capital reserve** | **Capital reserve** | | | | | | **Special Economic Zone Re-investment reserve *<sup>(1)</sup>*** | | | | |
| **Particulars**<br>| **Equity Share Capital**<br>| **Capital reserve** | **Other <br> reserves *<sup>(2)</sup>*** | **Capital redemption reserve** | **Securities Premium** | **Retained earnings** | **General reserve** | **Share Options Outstanding Account** | | **Equity Instruments through other comprehensive income** | **Effective portion of Cash flow hedges** | **Other items of other comprehensive income / (loss)** | **Total equity attributable to equity holders of the Company**<br>|
| **Balance as at April 1, 2022** | **2103** | **54** | **2844** | **139** | **172** | **55449** | **9** | **606** | **7926** | **266** | **2** | **(264)** | **69306** |
| Impact on adoption of amendment to Ind AS 37<sup>#</sup> | *–* | *–* | *–* | *–* | *–* | (9) | *–* | *–* | *–* | *–* | *–* | *–* | (9) |
|  | **2103** | **54** | **2844** | **139** | **172** | **55440** | **9** | **606** | **7926** | **266** | **2** | **(264)** | **69297** |
| **Changes in equity for the period ended December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Profit for the period | *–* | *–* | *–* | *–* | *–* | 17364 | *–* | *–* | *–* | *–* | *–* | *–* | 17364 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (28) | (28) |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 9 | *–* | *–* | 9 |
| Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (43) | *–* | (43) |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (275) | (275) |
| **Total comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **17364** |  ***–*** |  ***–*** |  ***–*** | **9** | **(43)** | **(303)** | **17027** |
| Buyback of equity shares\*\* | (13) | *–* | *–* | *–* | (332) | (5820) | *–* | *–* | *–* | *–* | *–* | *–* | (6165) |
| Transaction cost relating to buyback\* | *–* | *–* | *–* | *–* | (17) | (1) | *–* | *–* | *–* | *–* | *–* | *–* | (18) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | *–* | 11 | *–* | (2) | (9) | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred to Special Economic Zone Re-investment reserve | *–* | *–* | *–* | *–* | *–* | (2562) | *–* | *–* | 2562 | *–* | *–* | *–* | *–* |
| Transferred from Special Economic Zone Re-investment reserve on utilization | *–* | *–* | *–* | *–* | *–* | 817 | *–* | *–* | (817) | *–* | *–* | *–* | *–* |
| Transferred on account of exercise of stock options (Refer to note 2.11) | *–* | *–* | *–* | *–* | 191 | *–* | *–* | (191) | *–* | *–* | *–* | *–* | *–* |
| Transferred on account of options not exercised | *–* | *–* | *–* | *–* | *–* | *–* | 2 | (2) | *–* | *–* | *–* | *–* | *–* |
| Shares issued on exercise of employee stock options (Refer to note 2.11) | 1 | *–* | *–* | *–* | 17 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 18 |
| Employee stock compensation expense (Refer to note 2.11) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 383 | *–* | *–* | *–* | *–* | 383 |
| Income tax benefit arising on exercise of stock options | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 49 | *–* | *–* | *–* | *–* | 49 |
| Dividends | *–* | *–* | *–* | *–* | *–* | (13675) | *–* | *–* | *–* | *–* | *–* | *–* | (13675) |
| **Balance as at December 31, 2022** | **2091** | **54** | **2844** | **150** | **31** | **51561** | **2** | **845** | **9671** | **275** | **(41)** | **(567)** | **66916** |

---

*\** *net of tax*

*\*\** *Including tax on buyback of ![](rupee-symbol.gif)1,165 crore and ![](rupee-symbol.gif)1,893 crore for the nine months ended December 31, 2022 and December 31, 2021 respectively.*

*<sup>#</sup>* *Impact on account of adoption of amendment to Ind AS 37 Provisions, Contingent Liabilities and Contingents Assets*

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

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

*<sup>(3)</sup>* *Arising on transfer of the business of Brilliant Basics Limited to Infosys Limited*

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**INFOSYS LIMITED**

**Condensed Statement of Cash Flows**

**Accounting Policy**

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

(In ![](rupee-symbol.gif) crore)

---

| | | | |
|:---|:---|:---|:---|
| **Particulars** | **Note No.** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** |
| **Cash flow from operating activities:** |  |  |  |
| Profit for the period |  | 17364 | 16056 |
| **Adjustments to reconcile net profit to net cash provided by operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization |  | 2039 | 1809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 2.16 | 6322 | 5529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss recognized / (reversed) under expected credit loss model |  | 112 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance cost |  | 115 | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income |  | (2401) | (2196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 343 | 269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments |  | 241 | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translation of assets and liabilities, net |  | 98 | 54 |
| **Changes in assets and liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and unbilled revenue |  | (6476) | (4542) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, other financial assets and other assets |  | (873) | (940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables |  | 408 | 1053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities, other liabilities and provisions |  | 2410 | 3898 |
| **Cash generated from operations** |  | **19702** | **21330** |
| Income taxes paid |  | (5791) | (5036) |
| **Net cash generated by operating activities** |  | **13911** | **16294** |
| **Cash flow from investing activities:** |  |  |  |
| Expenditure on property, plant and equipment |  | (1475) | (1245) |
| Deposits placed with corporation |  | (569) | (651) |
| Redemption of deposits with corporations |  | 417 | 512 |
| Interest and dividend received |  | 1090 | 1392 |
| Dividend received from subsidiary |  | 1187 | 1150 |
| Loan given to subsidiaries |  | (427) | *–* |
| Loan repaid by subsidiaries |  | 393 | 73 |
| Proceeds from redemption of debentures |  | *–* | 536 |
| Investment in subsidiaries |  | (1530) | (125) |
| Escrow and other deposits pertaining to Buyback |  | (592) | (420) |
| Redemption of Escrow and other deposits pertaining to Buyback |  | *–* | 420 |
| Other receipts |  | 47 | 38 |
| Payments to acquire investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units |  | (48592) | (35408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial papers |  | (2116) | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposits |  | (5912) | (1473) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities |  | (1370) | (1553) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures |  | *–* | (1062) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | (4) | (4) |
| Proceeds on sale of investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds |  | 13 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities |  | *–* | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units |  | 47770 | 34893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures |  | 220 | 1939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 7155 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial papers |  | 1100 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities |  | 1532 | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 99 | *–* |
| **Net cash (used in) / generated from investing activities** |  | **(1564)** | **973** |
| **Cash flow from financing activities:** |  |  |  |
| Payment of lease liabilities |  | (494) | (429) |
| Shares issued on exercise of employee stock options |  | 18 | 10 |
| Buyback of equity shares including transaction costs and tax on buyback |  | (3928) | (11125) |
| Other receipts |  | 57 | 129 |
| Other payments |  | (61) | *–* |
| Payment of dividends |  | (13676) | (12700) |
| **Net cash used in financing activities** |  | **(18084)** | **(24115)** |
| Net increase / (decrease) in cash and cash equivalents |  | (5737) | (6848) |
| Effect of exchange differences on translation of foreign currency cash and cash equivalents |  | (59) | (46) |
| Cash and cash equivalents at the beginning of the period | 2.8 | 12270 | 17612 |
| **Cash and cash equivalents at the end of the period** | 2.8 | **6474** | **10718** |
| **Supplementary information:** |  |  |  |
| Restricted cash balance | 2.8 | 66 | 66 |

---

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

*As per our report of even date attached*

---

| | | | |
|:---|:---|:---|:---|
| *for* Deloitte Haskins & Sells LLP | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* | *for and on behalf of the Board of Directors of Infosys Limited* |
| *Chartered Accountants*<br> Firm's Registration No:<br> 117366W/ W-100018 |  |  |  |
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |  |

---

**INFOSYS LIMITED**

**Overview and Notes to the Interim Condensed Standalone Financial Statements**

**1. Overview**

**1.1 Company overview**

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

The Company is a public limited company incorporated and domiciled in India and has its registered office at 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 interim condensed standalone financial statements are approved for issue by the Company's Board of Directors on January 12, 2023.

**1.2 Basis of preparation of financial statements**

These interim condensed standalone financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed standalone financial statements do not include all the information required for a complete set of financial statements. These interim condensed standalone financial statements should be read in conjunction with the standalone financial statements and related notes included in the Company's Annual Report for the year ended March 31, 2022. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

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

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

**1.3 Use of estimates and judgments**

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

**1.4 Critical accounting estimates and judgments**

**a. Revenue recognition** 

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

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

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

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

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

**b. Income taxes**

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

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

In assessing the realizability of deferred income tax assets, Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer to note 2.16 and note 2.21)

**c. Property, plant and equipment**

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. (Refer to note 2.1)

**2. Notes to the Interim Condensed Standalone Financial Statements**

**2.1 PROPERTY, PLANT AND EQUIPMENT**

**Accounting Policy**

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

---

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

---

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

*<sup>(2)</sup>* *Includes Solar plant with a useful life of 20 years.*

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

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

**Impairment**

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

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

The changes in the carrying value of property, plant and equipment for the three months ended December 31, 2022 are as follows:

(In ![](rupee-symbol.gif) crore)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land- Freehold** | **Buildings<sup>(1)(2)</sup>** | **Plant and machinery<sup>(2)</sup>** | **Office Equipment<sup>(2)</sup>** | **Computer equipment<sup>(2)</sup>** | **Furniture and fixtures<sup>(2)</sup>** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2022** | **1429** | **10258** | **3122** | **1272** | **7525** | **2158** | **897** | **44** | **26705** |
| Additions | *–* | 165 | 88 | 27 | 309 | 92 | 1 | *–* | 682 |
| Deletions\*\* | *–* | *–* | (1) | (3) | (272) | (1) | *–* | *–* | (277) |
| **Gross carrying value as at December 31, 2022** | **1429** | **10423** | **3209** | **1296** | **7562** | **2249** | **898** | **44** | **27110** |
| **Accumulated depreciation as at October 1, 2022** | *–* | **(4027)** | **(2607)** | **(1036)** | **(5443)** | **(1713)** | **(575)** | **(38)** | **(15439)** |
| Depreciation | *–* | (99) | (61) | (27) | (281) | (55) | (41) | (1) | (565) |
| Accumulated depreciation on deletions\*\* | *–* | *–* | 1 | 3 | 272 | 1 | *–* | *–* | 277 |
| **Accumulated depreciation as at December 31, 2022** |  ***–*** | **(4126)** | **(2667)** | **(1060)** | **(5452)** | **(1767)** | **(616)** | **(39)** | **(15727)** |
| **Carrying value as at October 1, 2022** | **1429** | **6231** | **515** | **236** | **2082** | **445** | **322** | **6** | **11266** |
| **Carrying value as at December 31, 2022** | **1429** | **6297** | **542** | **236** | **2110** | **482** | **282** | **5** | **11383** |

---

The changes in the carrying value of property, plant and equipment for the three months ended December 31, 2021 are as follows:

(In ![](rupee-symbol.gif) crore)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land- Freehold** | **Buildings<sup>(1)(2)</sup>** | **Plant and machinery<sup>(2)</sup>** | **Office Equipment<sup>(2)</sup>** | **Computer equipment<sup>(2)</sup>** | **Furniture and fixtures<sup>(2)</sup>** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2021** | **1410** | **10001** | **3271** | **1227** | **6628** | **2032** | **822** | **44** | **25435** |
| Additions | 18 | 59 | 62 | 12 | 298 | 22 | 8 |  | 479 |
| Deletions\* | *–* | *–* | (26) | (1) | (124) | (4) | (34) | *–* | (189) |
| **Gross carrying value as at December 31, 2021** | **1428** | **10060** | **3307** | **1238** | **6802** | **2050** | **796** | **44** | **25725** |
| **Accumulated depreciation as at October 1, 2021** | *–* | **(3644)** | **(2705)** | **(943)** | **(4891)** | **(1524)** | **(455)** | **(35)** | **(14197)** |
| Depreciation | *–* | (96) | (59) | (27) | (226) | (49) | (34) | (1) | (492) |
| Accumulated depreciation on deletions\* | *–* | *–* | 26 | 1 | 124 | 4 | 25 | *–* | 180 |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3740)** | **(2738)** | **(969)** | **(4993)** | **(1569)** | **(464)** | **(36)** | **(14509)** |
| **Carrying value as at October 1, 2021** | **1410** | **6357** | **566** | **284** | **1737** | **508** | **367** | **9** | **11238** |
| **Carrying value as at December 31, 2021** | **1428** | **6320** | **569** | **269** | **1809** | **481** | **332** | **8** | **11216** |

---

The changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2022 are as follows:

(In ![](rupee-symbol.gif) crore)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land- Freehold** | **Buildings<sup>(1)(2)</sup>** | **Plant and machinery<sup>(2)</sup>** | **Office Equipment<sup>(2)</sup>** | **Computer equipment<sup>(2)</sup>** | **Furniture and fixtures<sup>(2)</sup>** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2022** | **1429** | **10115** | **3054** | **1250** | **7239** | **2070** | **817** | **44** | **26018** |
| Additions | *–* | 308 | 161 | 60 | 826 | 184 | 81 | 1 | 1621 |
| Deletions\*\* | *–* | *–* | (6) | (14) | (503) | (5) | *–* | (1) | (529) |
| **Gross carrying value as at December 31, 2022** | **1429** | **10423** | **3209** | **1296** | **7562** | **2249** | **898** | **44** | **27110** |
| **Accumulated depreciation as at April 1, 2022** | *–* | **(3834)** | **(2494)** | **(993)** | **(5163)** | **(1614)** | **(499)** | **(37)** | **(14634)** |
| Depreciation | *–* | (292) | (179) | (81) | (792) | (158) | (117) | (3) | (1622) |
| Accumulated depreciation on deletions\*\* | *–* | *–* | 6 | 14 | 503 | 5 | *–* | 1 | 529 |
| **Accumulated depreciation as at December 31, 2022** |  ***–*** | **(4126)** | **(2667)** | **(1060)** | **(5452)** | **(1767)** | **(616)** | **(39)** | **(15727)** |
| **Carrying value as at April 1, 2022** | **1429** | **6281** | **560** | **257** | **2076** | **456** | **318** | **7** | **11384** |
| **Carrying value as at December 31, 2022** | **1429** | **6297** | **542** | **236** | **2110** | **482** | **282** | **5** | **11383** |

---

\*\* During each of the three months and nine months ended December 31, 2022, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)252 crore (net book value: Nil) and ![](rupee-symbol.gif)401 crore, respectively were retired.

The changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2021 are as follows:

(In ![](rupee-symbol.gif) crore)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land- Freehold** | **Buildings<sup>(1)(2)</sup>** | **Plant and machinery<sup>(2)</sup>** | **Office Equipment<sup>(2)</sup>** | **Computer equipment<sup>(2)</sup>** | **Furniture and fixtures<sup>(2)</sup>** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2021** | **1397** | **9546** | **3141** | **1195** | **6530** | **1952** | **788** | **44** | **24593** |
| Additions | 31 | 514 | 194 | 48 | 789 | 108 | 42 | *–* | 1726 |
| Deletions\* | *–* | *–* | (28) | (5) | (517) | (10) | (34) | *–* | (594) |
| **Gross carrying value as at December 31, 2021** | **1428** | **10060** | **3307** | **1238** | **6802** | **2050** | **796** | **44** | **25725** |
| **Accumulated depreciation as at April 1, 2021** | *–* | **(3460)** | **(2600)** | **(891)** | **(4870)** | **(1434)** | **(376)** | **(32)** | **(13663)** |
| Depreciation | *–* | (280) | (166) | (82) | (640) | (144) | (113) | (4) | (1429) |
| Accumulated depreciation on deletions\* | *–* | *–* | 28 | 4 | 517 | 9 | 25 | *–* | 583 |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3740)** | **(2738)** | **(969)** | **(4993)** | **(1569)** | **(464)** | **(36)** | **(14509)** |
| **Carrying value as at April 1, 2021** | **1397** | **6086** | **541** | **304** | **1660** | **518** | **412** | **12** | **10930** |
| **Carrying value as at December 31, 2021** | **1428** | **6320** | **569** | **269** | **1809** | **481** | **332** | **8** | **11216** |

---

\* During each of the three months and nine months ended December 31, 2021, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)53 crore (net book value: Nil) and ![](rupee-symbol.gif)291 crore (net book value: Nil) respectively, were retired.

*<sup>(1)</sup>* *Buildings include ![](rupee-symbol.gif)250/- being the value of five shares of ![](rupee-symbol.gif)50/- each in Mittal Towers Premises Co-operative Society Limited.*

*<sup>(2)</sup>* *Includes certain assets provided on cancellable operating lease to subsidiaries.*

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

**2.2 GOODWILL AND INTANGIBLE ASSETS**

**2.2.1 Goodwill**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Carrying value at the beginning** | 211 | 167 |
| Goodwill on business transfer | *–* | 44 |
| **Carrying value at the end** | **211** | **211** |

---

**2.2.2 Intangible Assets:**

**Accounting Policy**

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

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

**2.3 LEASES** 

**Accounting Policy**

**The Company as a lessee** 

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

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

As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

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

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

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

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

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

**The Company as a lessor** 

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

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

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

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Computers** | **Total**  |
| **Balance as at October 1, 2022** | 550 | 2790 | 178 | 3518 |
| Additions<sup>(1)</sup> | *–* | 23 | 160 | 183 |
| Deletion | *–* | (2) | (16) | (18) |
| Depreciation | (1) | (111) | (33) | (145) |
| **Balance as at December 31, 2022** | **549** | **2700** | **289** | **3538** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives*

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Computers** | **Total**  |
| **Balance as at October 1, 2021** | 554 | 2652 | 100 | 3306 |
| Additions<sup>(1)</sup> | *–* | 155 | 41 | 196 |
| Deletion | *–* | (8) | *–* | (8) |
| Depreciation | (1) | (113) | (17) | (131) |
| **Balance as at December 31, 2021** | **553** | **2686** | **124** | **3363** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Computers** | **Total**  |
| **Balance as at April 1, 2022** | 552 | 2621 | 138 | 3311 |
| Additions<sup>(1)</sup> |  | 411 | 266 | 677 |
| Deletion |  | (3) | (50) | (53) |
| Depreciation | (3) | (329) | (65) | (397) |
| **Balance as at December 31, 2022** | **549** | **2700** | **289** | **3538** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Computers** | **Total**  |
| **Balance as at April 1, 2021** | 556 | 2766 | 113 | 3435 |
| Additions<sup>(1)</sup> |  | 248 | 42 | 290 |
| Deletion |  | (8) |  | (8) |
| Depreciation | (3) | (320) | (31) | (354) |
| **Balance as at December 31, 2021** | **553** | **2686** | **124** | **3363** |

---

*<sup>(1)</sup>* *Net of adjustments on account of modifications*

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed statement of Profit and Loss.

The following is the break-up of current and non-current lease liabilities as at December 31, 2022 and March 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Current lease liabilities | 680 | 558 |
| Non-current lease liabilities | 3571 | 3228 |
| **Total** | **4251** | **3786** |

---

**2.4 INVESTMENTS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity instruments of subsidiaries | 9078 | 9061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redeemable Preference shares of subsidiary | 2831 | 1318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities and equity instruments | 215 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compulsorily convertible debentures | *–* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 79 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 1743 | 1901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures | 2679 | 3459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | 6794 | 6853 |
| **Total non-current investments** | **23419** | **22869** |
| **Current investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | 2267 | 1337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Papers | 1039 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 2026 | 3141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 350 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | *–* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | 5 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures | 890 | 414 |
| **Total current investments** | **6577** | **5467** |
| **Total carrying value** | **29996** | **28336** |

---

*(In ![](rupee-symbol.gif) crore, except as otherwise stated)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unquoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment carried at cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in equity instruments of subsidiaries |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys BPM Limited | 662 | 662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,828 (33828) equity shares of ![](rupee-symbol.gif)10,000/- each, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Technologies (China) Co. Limited | 369 | 369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Technologies, S. de R.L. de C.V., Mexico | 65 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,49,99,990 (174999990) equity shares of MXN 1 par value, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Technologies (Sweden) AB | 76 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 (1000) equity shares of SEK 100 par value, fully paid |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Technologies (Shanghai) Company Limited | 1010 | 1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Public Services, Inc. | 99 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,50,00,000 (35000000) shares of USD 0.50 par value, fully paid |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Consulting Holding AG | 1323 | 1323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,350 (23350) - Class A shares of CHF 1,000 each and |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,460 (26460) - Class B Shares of CHF 100 each, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Americas Inc. | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 (10000) shares of USD 10 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EdgeVerve Systems Limited | 1312 | 1312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,31,18,40,000 (1311840000) equity shares of ![](rupee-symbol.gif)10/- each, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Nova Holdings LLC<sup>#</sup> | 2637 | 2637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Consulting Pte Ltd | 10 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,09,90,000 (10990000) shares of SGD 1.00 par value, fully paid |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brilliant Basics Holding Limited | 59 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,346 (1346) shares of GBP 0.005 each, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Arabia Limited | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 (70) shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Skava Systems Private Limited | 59 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,000 (25000) shares of ![](rupee-symbol.gif)10/- each, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Panaya Inc. | 582 | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 (2) shares of USD 0.01 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Chile SpA | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100 (100) shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WongDoody, Inc. | 380 | 380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100 (100) shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Luxembourg S.a r.l. | 17 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000 (20000) shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Austria GmBH | *–* | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80,000 (80000) shares of EUR 1 par value, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Consulting Brazil | 337 | 337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,50,71,070 (275071070) shares of BRL 1 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Romania | 34 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,183 (99183) shares of RON 100 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Bulgaria | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,58,000 (458000) shares of BGN 1 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Germany Holdings GmbH | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,000 (25000) shares EUR 1 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Green Forum | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,00,000 (1000000) shares ![](rupee-symbol.gif)10 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Automotive and Mobility GmbH | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Germany GmbH | *–* | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,000 (25000) shares EUR 1 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Turkey Bilgi Tekn | 7 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,30,842 (1) share Turkish Liras 100 (10000) per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Consulting S.R.L. (Argentina) | 2 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,94,500 (Nil) shares AR$100 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Business Solutions LLC | 8 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 (Nil) shares USD 100 per share, fully paid up |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in Redeemable Preference shares of subsidiary |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infosys Consulting Pte Ltd | 2831 | 1318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49,62,00,000 (249200000) shares of SGD 1 per share, fully paid up |  |  |
|  | **11909** | **10379** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compulsorily convertible debentures | *–* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)</sup> | 79 | 76 |
|  | **79** | **83** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities | 213 | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity instruments | 2 | 2 |
|  | **215** | **194** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Quoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 1743 | 1901 |
|  | **1743** | **1901** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures | 2679 | 3459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | 6794 | 6853 |
|  | **9473** | **10312** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current investments** | **23419** | **22869** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unquoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | 2267 | 1337 |
|  | **2267** | **1337** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Papers | 1039 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 2026 | 3141 |
|  | **3065** | **3141** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Quoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 350 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | *–* | 13 |
|  | **350** | **213** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | 5 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures | 890 | 414 |
|  | **895** | **776** |
| **Total current investments** | **6577** | **5467** |
| **Total investments** | **29996** | **28336** |
| Aggregate amount of quoted investments | 12461 | 13202 |
| Market value of quoted investments (including interest accrued), current | 1280 | 1003 |
| Market value of quoted investments (including interest accrued), non-current | 11446 | 12551 |
| Aggregate amount of unquoted investments | 17535 | 15134 |
| *<sup>#</sup>* Aggregate amount of impairment in value of investments | 94 | 94 |
| Reduction in the fair value of assets held for sale | 854 | 854 |
| Investments carried at cost | 11909 | 10379 |
| Investments carried at amortized cost | 2093 | 2114 |
| Investments carried at fair value through other comprehensive income | 13648 | 14423 |
| Investments carried at fair value through profit or loss | 2346 | 1420 |

---

*<sup>(1)</sup>* *Uncalled capital commitments outstanding as of December 31, 2022 and March 31, 2022 was ![](rupee-symbol.gif)8 crore and ![](rupee-symbol.gif)11 crore, respectively.*

*Refer to note 2.10 for accounting policies on financial instruments.*

**Method of fair valuation:**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| | | **Fair value as at** | **Fair value as at** |
| **Class of investment** | **Method** | **December 31, 2022** | **March 31, 2022** |
| Liquid mutual fund units | Quoted price | 2267 | 1337 |
| Tax free bonds and government bonds | Quoted price and market observable inputs | 2297 | 2438 |
| Non-convertible debentures | Quoted price and market observable inputs | 3569 | 3873 |
| Government Securities | Quoted price and market observable inputs | 6799 | 7215 |
| Commercial Papers | Market observable inputs | 1039 |  |
| Certificate of deposit | Market observable inputs | 2026 | 3141 |
| Unquoted equity and preference securities | Discounted cash flows method, Market multiples method, Option pricing model | 215 | 194 |
| Compulsorily convertible debentures | Discounted cash flows method | *–* | 7 |
| Others | Discounted cash flows method, Market multiples method, Option pricing model | 79 | 76 |

---

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

**2.5 LOANS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non- Current** |  |  |
| Loans considered good - Unsecured |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to employees | 43 | 34 |
| **Total non - current loans** | **43** | **34** |
| **Current** |  |  |
| Loans considered good - Unsecured |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to subsidiaries | 43 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to employees | 241 | 219 |
| **Total current loans** | **284** | **219** |
| **Total Loans** | **327** | **253** |

---

**2.6 OTHER FINANCIAL ASSETS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits <sup>(1)</sup> | 42 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment in Sublease of right of use asset <sup>(1)</sup> | 313 | 320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental deposits <sup>(1)</sup> | 170 | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>(1)(5)#</sup> | 596 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)</sup> | 99 | 15 |
| **Total non-current other financial assets** | **1220** | **727** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits <sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental deposits <sup>(1)</sup> | 13 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted deposits <sup>(1)\*</sup> | 2117 | 1965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>(1)(5)#</sup> | 4790 | 3543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest accrued but not due <sup>(1)</sup> | 339 | 323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward and options contracts <sup>(2)(3)</sup> | 26 | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Escrow and other deposits pertaining to buyback (Refer to Note 2.11) <sup>(1)\*\*</sup> | 592 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment in Sublease of right of use asset <sup>(1)</sup> | 48 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)(4)</sup> | 208 | 536 |
| **Total current other financial assets** | **8134** | **6580** |
| **Total other financial assets** | **9354** | **7307** |
| <sup>(1)</sup> Financial assets carried at amortized cost | 9328 | 7176 |
| <sup>(2)</sup> Financial assets carried at fair value through other comprehensive income | 13 | 20 |
| <sup>(3)</sup> Financial assets carried at fair value through Profit or Loss | 13 | 111 |
| *<sup>(4)</sup> Includes dues from subsidiaries* | 35 | 220 |
| *<sup>(5)</sup> Includes dues from subsidiaries* | 833 | 419 |

---

\* Restricted deposits represent deposit with financial institutions to settle employee related obligations as and when they arise during the normal course of business.

\*\* Includes ![](rupee-symbol.gif)240 crore towards shares purchased but not settled as of December 31, 2022

---

| | |
|:---|:---|
| **<sup>#</sup>** | Classified as financial asset as right to consideration is unconditional and is due only after a passage of time. |

---

**2.7 TRADE RECEIVABLES** 

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable considered good - Unsecured <sup>(1)</sup> | 23676 | 19454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for expected credit loss | 470 | 488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable considered good - Unsecured | 23206 | 18966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable - credit impaired - Unsecured | 93 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit impairment | 93 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable - credit impaired - Unsecured | *–* | *–* |
| **Total trade receivables <sup>(2)</sup>** | **23206** | **18966** |
| *<sup>(1)</sup> Includes dues from subsidiaries* | 1493 | 268 |
| *<sup>(2)</sup> Includes dues from companies where directors are interested* | *–* | *–* |

---

**2.8 CASH AND CASH EQUIVALENTS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Balances with banks |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In current and deposit accounts | 4804 | 9375 |
| Cash on hand | *–* | *–* |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with financial institutions | 1670 | 2895 |
| **Total Cash and cash equivalents** | **6474** | **12270** |
| *Balances with banks in unpaid dividend accounts* | 35 | 36 |
| *Deposit with more than 12 months maturity* | *–* | 1471 |
| *Balances with banks held as margin money deposits against guarantees* | 1 | 1 |

---

Cash and cash equivalents as at December 31, 2022 and March 31, 2022 include restricted cash and bank balances of ![](rupee-symbol.gif)66 crore and ![](rupee-symbol.gif)60 crore, respectively. The restrictions are primarily on account of bank balances held as margin money deposits against guarantees.

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

**2.9 OTHER ASSETS** 

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| Capital advances | 108 | 87 |
| Advances other than capital advance |  |  |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 74 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plan assets | 9 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract cost<sup>(3)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 129 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 493 | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues<sup>(2)</sup> | 370 | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes and others | 667 | 657 |
| **Total non-current other assets** | **1850** | **1416** |
| **Current** |  |  |
| Advances other than capital advance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment to vendors for supply of goods | 48 | 183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses <sup>(1)</sup> | 1604 | 1174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues<sup>(2)</sup> | 5652 | 5365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract cost<sup>(3)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 391 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 111 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes and others | 2056 | 1589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables <sup>(1)</sup> | 218 | 234 |
| **Total current other assets** | **10080** | **8935** |
| **Total other assets** | **11930** | **10351** |
| *<sup>(1)</sup> Includes dues from subsidiaries* | 179 | 204 |

---

*<sup>(2)</sup>* *Classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual milestones.*

*<sup>(3)</sup>* *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. (Refer to note 2.12)*

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

**2.10 FINANCIAL INSTRUMENTS**

**Accounting Policy**

**2.10.1 Initial recognition**

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

**2.10.2 Subsequent measurement**

**a. Non-derivative financial instruments**

***(i) Financial assets carried at amortized cost***

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

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

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

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

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

***(iv) Financial liabilities***

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit or loss.

***(v) Investment in subsidiaries***

Investment in subsidiaries is carried at cost in the separate financial statements.

**b. Derivative financial instruments**

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

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

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

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

***(ii) Cash flow hedge***

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

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

**2.10.3 Derecognition of financial instruments**

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

**2.10.4 Fair value of financial instruments**

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

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

**2.10.5 Impairment** 

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenues which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated 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 to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in statement of profit and loss.

**Financial instruments by category**

The carrying value and fair value of financial instruments by categories as at December 31, 2022 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/liabilities at fair value through OCI** | **Financial assets/liabilities at fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents (Refer to note 2.8) | 6474 | *–* | *–* | *–* | *–* | 6474 | 6474 |
| Investments (Refer to note 2.4) |  | *–* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities, Equity instruments and others | *–* | *–* | 79 | 215 | *–* | 294 | 294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds | 2093 | *–* | *–* | *–* | *–* | 2093 | 2297*<sup>(1)</sup>* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 2267 | *–* | *–* | 2267 | 2267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Papers | *–* | *–* | *–* | *–* | 1039 | 1039 | 1039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposits | *–* | *–* | *–* | *–* | 2026 | 2026 | 2026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | *–* | *–* | *–* | *–* | 3569 | 3569 | 3569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | *–* | *–* | *–* | *–* | 6799 | 6799 | 6799 |
| Trade receivables (Refer to note 2.7) | 23206 | *–* | *–* | *–* | *–* | 23206 | 23206 |
| Loans (Refer to note 2.5) | 327 | *–* | *–* | *–* | *–* | 327 | 327 |
| Other financial assets (Refer to note 2.6) <sup>(3)</sup> | 9328 | *–* | 13 | *–* | 13 | 9354 | 9286<sup>(2)</sup> |
| **Total** | **41428** | *–* | **2359** | **215** | **13446** | **57448** | **57584** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables (Refer to note 2.13) | 3077 | *–* | *–* | *–* | *–* | 3077 | 3077 |
| Lease liabilities (Refer to note 2.3) | 4251 | *–* | *–* | *–* | *–* | 4251 | 4251 |
| Other financial liabilities (Refer to note 2.12) | 12978 | *–* | 160 | *–* | 33 | 13171 | 13171 |
| **Total** | **20306** | *–* | **160** | *–* | **33** | **20499** | **20499** |

---

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ![](rupee-symbol.gif)68 crore*

*<sup>(3)</sup>* *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 ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/ liabilities at fair value through profit or loss** | **Financial assets/liabilities at fair value through OCI** | **Financial assets/liabilities at fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon initial recognition** | **Mandatory** | **Equity instruments designated upon initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents (Refer to note 2.8) | 12270 | *–* | *–* | *–* | *–* | 12270 | 12270 |
| Investments (Refer to note 2.4) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities, Equity instruments and others | *–* | *–* | 76 | 194 | *–* | 270 | 270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compulsorily convertible debentures | *–* | *–* | 7 | *–* | *–* | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds | 2114 | *–* | *–* | *–* | *–* | 2114 | 2438*<sup>(1)</sup>* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 1337 | *–* | *–* | 1337 | 1337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposits | *–* | *–* | *–* | *–* | 3141 | 3141 | 3141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | *–* | *–* | *–* | *–* | 3873 | 3873 | 3873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government Securities | *–* | *–* | *–* | *–* | 7215 | 7215 | 7215 |
| Trade receivables (Refer to note 2.7) | 18966 | *–* | *–* | *–* | *–* | 18966 | 18966 |
| Loans (Refer to note 2.5) | 253 | *–* | *–* | *–* | *–* | 253 | 253 |
| Other financial assets (Refer to note 2.6)<sup>(3)</sup> | 7176 | *–* | 111 | *–* | 20 | 7307 | 7216*<sup>(2)</sup>* |
| **Total** | **40779** | *–* | **1531** | **194** | **14249** | **56753** | **56986** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables (Refer to note 2.13) | 2669 | *–* | *–* | *–* | *–* | 2669 | 2669 |
| Lease Liabilities (Refer to note 2.3) | 3786 | *–* | *–* | *–* | *–* | 3786 | 3786 |
| Other financial liabilities (Refer to note 2.12) | 10084 | *–* | 8 | *–* | 3 | 10095 | 10095 |
| **Total** | **16539** | *–* | **8** | *–* | **3** | **16550** | **16550** |

---

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ![](rupee-symbol.gif)91 crore*

*<sup>(3)</sup>* *Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones*

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

**Fair value hierarchy**

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

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

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

The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at December 31, 2022 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
| **Particulars** | **As at December 31, 2022** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in tax free bonds (Refer to note 2.4) | 2297 | 897 | 1400 | *–* |
| Investments in government bonds (Refer to note 2.4) | *–* | *–* | *–* | *–* |
| Investments in liquid mutual fund units (Refer to note 2.4) | 2267 | 2267 | *–* | *–* |
| Investments in certificates of deposit (Refer to note 2.4) | 2026 | *–* | 2026 | *–* |
| Investments in commercial papers (Refer to Note 2.4) | 1039 | *–* | 1039 | *–* |
| Investments in non convertible debentures (Refer to note 2.4) | 3569 | 1853 | 1716 | *–* |
| Investments in government securities (Refer to note 2.4) | 6799 | 6726 | 73 | *–* |
| Investments in equity instruments (Refer to note 2.4) | 2 | *–* | *–* | 2 |
| Investments in preference securities (Refer to note 2.4) | 213 | *–* | *–* | 213 |
| Other investments (Refer to note 2.4) | 79 | *–* | *–* | 79 |
| Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to note 2.6) | 26 | *–* | 26 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer to note 2.12) | 193 | *–* | 193 | *–* |

---

During the nine months ended December 31, 2022, tax free bonds and non-convertible debentures of ![](rupee-symbol.gif)902 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 and government securities of ![](rupee-symbol.gif)2,540 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2022 was as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** | **Fair value measurement at end of the reporting period using** |
| **Particulars** | **As at March 31, 2022** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in tax free bonds (Refer to note 2.4) | 2425 | 1238 | 1187 | *–* |
| Investments in government bonds (Refer to note 2.4) | 13 | 13 | *–* | *–* |
| Investments in liquid mutual fund units (Refer to note 2.4) | 1337 | 1337 | *–* | *–* |
| Investments in certificate of deposit (Refer to note 2.4) | 3141 | *–* | 3141 | *–* |
| Investments in non convertible debentures (Refer to note 2.4) | 3873 | 3472 | 401 | *–* |
| Investments in government securities (Refer to note 2.4) | 7215 | 7177 | 38 | *–* |
| Investments in equity instruments (Refer to note 2.4) | 2 | *–* | *–* | 2 |
| Investments in preference securities (Refer to note 2.4) | 192 | *–* | *–* | 192 |
| Investments in compulsorily convertible debentures (Refer to note 2.4) | 7 | *–* | *–* | 7 |
| Other investments (Refer to note 2.4) | 76 | *–* | *–* | 76 |
| Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts (Refer to note 2.6) | 131 | *–* | 131 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts (Refer note 2.12) | 11 | *–* | 11 | *–* |

---

During the year ended March 31, 2022, tax free bonds of ![](rupee-symbol.gif)576 crore was 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 and government securities of ![](rupee-symbol.gif)890 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

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

**2.11 EQUITY**

**Accounting policy**

**Ordinary Shares**

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

**Description of reserves**

**Capital redemption reserve**

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

**Retained earnings**

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

**Securities premium**

The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account.

**Share options outstanding account**

The Share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

**Special Economic Zone Re-investment reserve**

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

**Other components of equity**

Other components of equity include remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in fair value of derivatives designated as cash flow hedges, net of taxes.

**Cash flow hedge reserve**

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction.

**2.11.1 EQUITY SHARE CAPITAL**

*(In ![](rupee-symbol.gif) crore, except as otherwise stated)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Authorized** |  |  |
| Equity shares, ![](rupee-symbol.gif)5/- par value |  |  |
| 4,80,00,00,000 (4800000000) equity shares | 2400 | 2400 |
| **Issued, Subscribed and Paid-Up** |  |  |
| Equity shares, ![](rupee-symbol.gif)5/- par value <sup>(1)</sup> | 2091 | 2103 |
| 4,18,29,16,843 (4206738641) equity shares fully paid-up |  |  |
|  | **2091** | **2103** |

---

*<sup>(1)</sup>* *Refer to note 2.20 for details of basic and diluted shares*

Forfeited shares amounted to ![](rupee-symbol.gif)1,500/- (![](rupee-symbol.gif)1,500/-)

The Company has only one class of shares referred to as equity shares having a par value of ![](rupee-symbol.gif)5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depository Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently.

For details of shares reserved for issue under the employee stock option plan of the Company, refer to the note below.

The reconciliation of the number of shares outstanding and the amount of share capital as at December 31, 2022 and March 31, 2022 is set out below:

*(in ![](rupee-symbol.gif) crore, except as stated otherwise)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As at December 31, 2022** | **As at December 31, 2022** | **As at March 31, 2022** | **As at March 31, 2022** |
| **Particulars** | **Number of shares** | **Amount** | **Number of shares** | **Amount** |
| **As at the beginning of the period** | 4206738641 | 2103 | 4260660846 | 2130 |
| Add: Shares issued on exercise of employee stock options | 1342202 | 1 | 1885132 | 1 |
| Less: Shares bought back | 25164000 | 13 | 55807337 | 28 |
| **As at the end of the period** | **4182916843** | **2091** | **4206738641** | **2103** |

---

**Capital allocation policy** 

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

**Update on buyback announced in October 2022**

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 ![](rupee-symbol.gif)9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023. During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

**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 ![](rupee-symbol.gif)9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing Annual General Meeting.

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021.

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buyback price of ![](rupee-symbol.gif)1,648.53/- per equity share comprising 1.31% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of ![](rupee-symbol.gif)9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at March 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)28 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of December 31, 2022, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

**2.11.2 DIVIDEND**

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

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable 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:-

*(in ![](rupee-symbol.gif))*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Interim dividend for fiscal 2023 | 16.50 | *–* | 16.50 | *–* |
| Final dividend for fiscal 2022 | *–* | *–* | 16.00 | *–* |
| Interim dividend for fiscal 2022 | *–* | 15.00 | *–* | 15.00 |
| Final dividend for fiscal 2021 | *–* | *–* | *–* | 15.00 |

---

The Board of Directors in their meeting on April 13, 2022 recommended a final dividend of ![](rupee-symbol.gif)16/- per equity share for the financial year ended March 31, 2022. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 25, 2022 which resulted in a net cash outflow of ![](rupee-symbol.gif)6,732 crore.

The Board of Directors in their meeting held on October 13, 2022 declared an interim dividend of ![](rupee-symbol.gif)16.50/- per equity share which resulted in a net cash outflow of ![](rupee-symbol.gif)6,943 crore.

**2.11.3 Employee Stock Option Plan (ESOP):**

**Accounting Policy**

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

**Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan):**

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 5,00,00,000 equity shares. To implement the 2019 Plan, up to 4,50,00,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholders Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

**2015 Stock Incentive Compensation Plan (the 2015 Plan):**

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). The Company expects to grant the instruments under the 2015 Plan over the period of 4 years. The plan numbers mentioned above would further be adjusted for the September 2018 bonus issue.

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

Controlled trust holds 12,568,222 shares and 13,725,712 shares as at December 31, 2022 and March 31, 2022, respectively under the 2015 plan. Out of these shares, 200,000 equity shares each have been earmarked for welfare activities of the employees as at December 31, 2022 and March 31, 2022.

The following is the summary of grants during the three months and nine months ended December 31, 2022 and December 31, 2021:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2019 plan** | **2019 plan** | **2019 plan** | **2019 plan** | **2015 plan** | **2015 plan** | **2015 plan** | **2015 plan** |
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars**<br>| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| **Equity settled RSUs** |  |  |  |  |  |  |  |  |
| Key Managerial Personnel (KMPs) | *–* | *–* | 176893 | 73962 | *–* | *–* | 287325 | 101697 |
| Employees other than KMPs | 3814 | *–* | 374774 | *–* | 48050 | 25270 | 48050 | 25270 |
| **Total Grants** | **3814** |  ***–*** | **551667** | **73962** | **48050** | **25270** | **335375** | **126967** |

---

***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 a term 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 accordance with the terms of his employment agreement effective till June 30, 2022, approved the grant of performance-based RSUs of fair value of ![](rupee-symbol.gif)13 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement 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, the Board, on July 24, 2022, based on the recommendations of the Nomination and Remuneration Committee:

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the grant of performance-based RSUs (Annual performance equity grant) of fair value
of ![](rupee-symbol.gif) 21.75 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement
of certain performance targets. Accordingly, 140,228 performance based RSU's were granted effective August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance equity ESG grant) of fair
value of ![](rupee-symbol.gif) 2 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement
of certain environment, social and governance milestones as determined by the Board. Accordingly, 12,894 performance-based RSU's
were granted effective August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance Equity TSR grant) of fair
value of ![](rupee-symbol.gif) 5 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on Company's
performance on cumulative relative TSR over the years and as determined by the Board. Accordingly, 32,236 performance-based RSU's
were granted effective August 1, 2022.

**Under the 2019 plan:**

The Board, on April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ![](rupee-symbol.gif)10 crore for fiscal 2023 under the 2019 Plan. These RSUs will vest in line with the employment agreement effective till June 30, 2022 based on achievement of certain performance targets. Accordingly, 64,893 performance-based RSU's were granted effective May 2, 2022.

**Other KMPs**

**Under the 2015 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performance-based grant of 5,616 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. The performance-based RSUs will vest over three years based on certain performance targets.

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved time based grant of 11,990 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. These RSUs will vest over four years.

**Under the 2019 plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance-based grant of 8,000 RSUs to a KMP under the 2019 Plan. The grants were made effective May 2, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

On May 21, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance-based grant of 104,000 RSUs to other KMPs under the 2019 Plan. The grants were made effective June 1, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

**The break-up of employee stock compensation expense is as follows:** 

*(in ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Granted to: |  |  |  |  |
| KMP<sup>#</sup> | *–* | 17 | 41 | 51 |
| Employees other than KMP | 101 | 68 | 302 | 218 |
| **Total <sup>(1)</sup>** | **101** | **85** | **343** | **269** |
| *<sup>(1)</sup> Cash settled stock compensation expense included in the above* | 2 | 3 | *–* | 11 |

---

<sup>#</sup> *Includes reversal of employee stock compensation expense on account of resignation*

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For options granted in** | **For options granted in** | **For options granted in** | **For options granted in** |
| **Particulars** | **Fiscal 2023- <br> Equity Shares-RSU** | **Fiscal 2023- <br> ADS-RSU** | **Fiscal 2022- <br> Equity Shares-RSU** | **Fiscal 2022- <br> ADS-RSU** |
| Weighted average share price (![](rupee-symbol.gif)) / ($ ADS) | 1525 | 19.01 | 1791 | 24.45 |
| Exercise price (![](rupee-symbol.gif)) / ($ ADS) | 5.00 | 0.07 | 5.00 | 0.07 |
| Expected volatility (%) | 23-32 | 28-34 | 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 |
| Weighted average fair value as on grant date (![](rupee-symbol.gif)) / ($ ADS) | 1283 | 14.40 | 1548 | 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.

**2.12 OTHER FINANCIAL LIABILITIES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| &nbsp;&nbsp;&nbsp;Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensated absences | 80 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation to employees <sup>(1)</sup> | 8 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses <sup>(1)(4)</sup> | 1014 | 503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables <sup>(1)(7)</sup> | 64 | 79 |
| **Total non-current other financial liabilities** | **1166** | **676** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;Unpaid dividends <sup>(1)</sup> | 35 | 36 |
| &nbsp;&nbsp;&nbsp;Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation to employees <sup>(1)</sup> | 2541 | 2999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses <sup>(1)(4)</sup> | 5017 | 4603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retention monies <sup>(1)</sup> | 14 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital creditors <sup>(1)</sup> | 365 | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liability relating to buyback (Refer Note no. 2.11) <sup>(1)(6)</sup> | 1616 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensated absences | 1927 | 1764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables <sup>(1)(5)(7)</sup> | 2304 | 1449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward and options contracts <sup>(2)(3)</sup> | 193 | 11 |
| **Total current other financial liabilities** | **14012** | **11269** |
| **Total other financial liabilities** | **15178** | **11945** |
| *<sup>(1)</sup> Financial liability carried at amortized cost* | 12978 | 10084 |
| *<sup>(2)</sup> Financial liability carried at fair value through profit or loss* | 160 | 8 |
| *<sup>(3)</sup> Financial liability carried at fair value through other comprehensive income* | 33 | 3 |
| *<sup>(4)</sup> Includes dues to subsidiaries* | 31 | 7 |
| *<sup>(5)</sup> Includes dues to subsidiaries* | 154 | 316 |

---

*<sup>(6)</sup>* *In accordance with Ind AS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at December 31, 2022 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (Refer to Note 2.11) . The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.*

*<sup>(7)</sup>* *Deferred contract cost (Refer to note 2.9) includes technology assets taken over by the Company from a customer as a part of transformation project which is not considered as distinct goods or services and the control related to the assets is not transferred to the Company in accordance with Ind AS 115 - Revenue from contract with customers. Accordingly, the same has been considered as a reduction to the total contract value and accounted as Deferred contract cost. The Company has entered into a financing arrangement with a third party for these assets which has been considered as financial liability.*

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.

**2.13 TRADE PAYABLES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Outstanding dues of micro enterprises and small enterprises | *–* | 3 |
| Outstanding dues of creditors other than micro enterprises and small enterprises<sup>(1)</sup> | 3077 | 2666 |
| **Total trade payables** | **3077** | **2669** |
| *<sup>(1)</sup> Includes dues to subsidiaries* | *635* | *613* |

---

**2.14 OTHER LIABILITIES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| Accrued defined benefit liability | 439 | 332 |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;Deferred income | 3 | 9 |
| &nbsp;&nbsp;&nbsp;Deferred income - government grants | 19 | 19 |
| **Total non - current other liabilities** | **461** | **360** |
| **Current** |  |  |
| Accrued defined benefit liability | 1 | 2 |
| Unearned revenue | 5772 | 5179 |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;Tax on buyback (Refer Note no. 2.11) | 643 | *–* |
| &nbsp;&nbsp;&nbsp;Deferred income - government grants | 9 | 10 |
| &nbsp;&nbsp;&nbsp;Withholding taxes and others | 2136 | 2190 |
| **Total current other liabilities** | **8561** | **7381** |
| **Total other liabilities** | **9022** | **7741** |

---

**2.15 PROVISIONS**

**Accounting Policy**

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

**a. Post-sales client support**

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

**b. Onerous contracts**

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract.

**Provision for post-sales client support and other provisions**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| Others |  |  |
| Post-sales client support and others | 1288 | 920 |
| **Total provisions** | **1288** | **920** |

---

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 1 year.

**2.16 INCOME TAXES**

**Accounting Policy**

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

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

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Current taxes | 1916 | 1852 | 6261 | 5354 |
| Deferred taxes | 169 | 67 | 61 | 175 |
| **Income tax expense** | **2085** | **1919** | **6322** | **5529** |

---

Income tax expense for the three months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)79 crore and provisions (net of reversal) of ![](rupee-symbol.gif)3 crore, respectively. Income tax expense for the nine months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)65 crore and ![](rupee-symbol.gif)29 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions.

Deferred income tax for the three months and nine months ended December 31, 2022 and December 31, 2021 substantially relates to origination and reversal of temporary differences.

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

**2.17 REVENUE FROM OPERATIONS**

**Accounting Policy**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Company presents revenues net of indirect taxes in its Statement of Profit and Loss.

Revenue from operations for the three months and nine months ended December 31, 2022 and December 31, 2021 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Revenue from software services | 32328 | 27261 | 93312 | 76262 |
| Revenue from products and platforms | 61 | 76 | 171 | 252 |
| **Total revenue from operations** | **32389** | **27337** | **93483** | **76514** |

---

**Disaggregated revenue information**

The table below presents disaggregated revenues from contracts with customers by offerings for the three months and nine months ended December 31, 2022 and December 31, 2021 respectively. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| **Revenue by offerings** |  |  |  |  |
| Core | 11820 | 11164 | 34834 | 32656 |
| Digital | 20569 | 16173 | 58649 | 43858 |
| **Total** | **32389** | **27337** | **93483** | **76514** |

---

**Digital Services**

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

**Core Services**

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

**Products & platforms**

The Company derives revenues from the sale of products and platforms including Infosys Applied AI which applies next-generation AI and machine learning.

**Trade receivables and Contract Balances**

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

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

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

Invoicing in excess of earnings are classified as unearned revenue.

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

**2.18 OTHER INCOME, NET**

**2.18.1 Other income - Accounting Policy**

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

**2.18.2 Foreign currency - Accounting Policy**

*Functional currency*

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million).

*Transactions and translations*

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

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

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

**Government grant**

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

Other income for the three months and nine months ended December 31, 2022 and December 31, 2021 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Interest income on financial assets carried at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds | 38 | 38 | 113 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit with Bank and others | 136 | 131 | 451 | 523 |
| Interest income on financial assets fair valued through other comprehensive income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures, commercial papers, certificates of deposit and government securities | 215 | 123 | 650 | 409 |
| Income on investments carried at fair value through other comprehensive income | *–* | 1 | 1 | 1 |
| Income on investments carried at fair value through profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain / (loss) on liquid mutual funds and other investments | 63 | 30 | 107 | 82 |
| Dividend received from subsidiary | 494 | 558 | 1187 | 1150 |
| Exchange gains/(losses) on foreign currency forward and options contracts | (413) | 154 | (673) | 224 |
| Exchange gains/(losses) on translation of other assets and liabilities | 562 | (90) | 1073 | (44) |
| Miscellaneous income, net | 82 | 68 | 184 | 175 |
| **Total other income** | **1177** | **1013** | **3093** | **2634** |

---

**2.19 EXPENSES**

**Accounting Policy**

**2.19.1 Gratuity and Pension**

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

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

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

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

**2.19.2 Provident fund**

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

**2.19.3 Superannuation**

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

**2.19.4 Compensated absences** 

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| *Employee benefit expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries including bonus | 15757 | 12738 | 45248 | 36690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contribution to provident and other funds | 499 | 371 | 1425 | 1016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share based payments to employees (Refer to note 2.11) | 101 | 85 | 343 | 269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff welfare | 38 | 81 | 166 | 224 |
|  | **16395** | **13275** | **47182** | **38199** |
| *Cost of software packages and others* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For own use | 379 | 210 | 1082 | 755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third party items bought for service delivery to clients | 1349 | 646 | 3257 | 1365 |
|  | **1728** | **856** | **4339** | **2120** |
| *Other expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power and fuel | 40 | 25 | 113 | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brand and Marketing | 184 | 122 | 526 | 277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term leases | 9 | 2 | 15 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rates and taxes | 54 | 38 | 157 | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repairs and Maintenance | 237 | 210 | 670 | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumables | 5 | 8 | 18 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance | 35 | 39 | 106 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for post-sales client support and others | 132 | 42 | 201 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission to non-whole time directors | 4 | 3 | 11 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss recognized / (reversed) under expected credit loss model | 59 | 45 | 112 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auditor's remuneration |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory audit fees | 1 | 1 | 5 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax matters | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other services | *–* | *–* | *–* | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions towards Corporate Social Responsibility | 132 | 85 | 289 | 321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 86 | 31 | 194 | 70 |
|  | **978** | **651** | **2417** | **1828** |

---

**2.20 BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER EQUITY SHARE**

**Accounting Policy**

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

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

**2.21 CONTINGENT LIABILITIES AND COMMITMENTS**

**Accounting Policy**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Contingent liabilities:** |  |  |
| Claims against the Company, not acknowledged as debts*<sup>(1)</sup>* | 4297 | 4245 |
| [Amount paid to statutory authorities ![](rupee-symbol.gif)6,132 crore *(![](rupee-symbol.gif)5,617 crore)*] |  |  |
| **Commitments:** |  |  |
| Estimated amount of contracts remaining to be executed on capital contracts and not provided for | 623 | 1092 |
| (net of advances and deposits)<sup>(2)</sup> |  |  |
| Other Commitments\* | 8 | 11 |

---

*\** *Uncalled capital pertaining to investments*

<sup>(1)</sup> As at December 31, 2022 and March 31, 2022, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ![](rupee-symbol.gif)3,938 crore and ![](rupee-symbol.gif)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 respect of employment of new employees under section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Appellate Authorities and the management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company's financial position and results of operations.

Amount paid to statutory authorities against the tax claims amounted to ![](rupee-symbol.gif)6,122 crore and ![](rupee-symbol.gif)5,607 crore as at December 31, 2022 and March 31, 2022, respectively.

<sup>(2)</sup> Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments.

**Legal Proceedings**

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

**2.22 RELATED PARTY TRANSACTIONS**

Refer to the Company's Annual Report for the year ended March 31, 2022 for the full names and other details of the Company's subsidiaries and controlled trusts.

**Changes in Subsidiaries**

During the nine months ended December 31, 2022, the following are the changes in the subsidiaries:

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH ("Kristall")) (a wholly owned subsidiary of 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 along with its subsidiary oddity code d.o.o., and oddity GmbH along with its two subsidiaries oddity (Shanghai) Co. Ltd., oddity Limited(Taipei).

- 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 effect from April 1, 2022.

- Panaya GmbH renamed as Infosys Financial Services GmbH.

- Infosys Arabia Limited, a majority owned and controlled subsidiary of Infosys Limited is under liquidation.

- Infosys Public Services Canada Inc., a wholly owned subsidiary of Infosys Public Services Inc. was incorporated on July 8, 2022.

On September 1, 2022, Infosys Consulting Pte. Ltd. (a Wholly-owned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S along with its seven subsidiaries BASE life science AG, BASE life science GmbH, BASE life science Ltd., BASE life science S.A.S., BASE life science S.r.l., Innovisor Inc. and BASE life science Inc.

- BASE life science SL., a wholly owned subsidiary of BASE life science A/S was incorporated on September 6, 2022

- Panaya Germany GmbH, a wholly owned subsidiary of Panaya Inc. was incorporated on December 15, 2022.

The Company's related party transactions during the three months and nine months ended December 31, 2022 and December 31, 2021 and outstanding balances as at December 31, 2022 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.

**Change in key management personnel**

The following are the changes in the key management personnel:

- Ravi Kumar S resigned effective October 11, 2022

**Transactions with key management personnel**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Salaries and other short term employee benefits to whole-time directors and executive officers *<sup>(1)(2)</sup>* | 12 | 33 | 86 | 106 |
| Commission and other benefits to non-executive / independent directors | 5 | 3 | 12 | 8 |
| **Total** | **17** | **36** | **98** | **114** |

---

*<sup>(1)</sup>* *Total employee stock compensation expense for the three months ended December 31, 2022 and December 31, 2021 includes a charge of less than a crore and ![](rupee-symbol.gif)17 crore, respectively, towards key managerial personnel. For the nine months ended December 31, 2022 and December 31, 2021, includes a charge of ![](rupee-symbol.gif)41 crore and ![](rupee-symbol.gif)51 crore respectively, towards key managerial personnel.(Refer to note 2.11) Stock compensation expense for the three months and nine months ended December 31, 2022 include reversal of expense on account of resignation.*

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

**2.23 SEGMENT REPORTING**

The Company publishes this financial statement along with the interim condensed consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the interim condensed consolidated financial statements.

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

---

| | | |
|:---|:---|:---|
| Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer<br> and Managing Director* | D. Sundaram<br> *Director* |
| Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and <br>Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |

---

## Exhibit 99.10

**Exhibit 99.10**<br> **Ind AS Consolidated**

**INDEPENDENT AUDITOR'S REPORT**

**TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED**

**Report on the Audit of the Interim Condensed Consolidated Financial Statements** 

**Opinion**

We have audited the accompanying interim condensed consolidated financial statements of **INFOSYS LIMITED** (the "Company"), and its subsidiaries (the Company and its subsidiaries together referred to as the "Group"), which comprise the Condensed Consolidated Balance Sheet as at December 31, 2022, the Condensed Consolidated Statement of Profit and Loss (including Other Comprehensive Income) for the three months and nine months ended on that date, the Condensed Consolidated Statement of Changes in Equity and the Condensed Consolidated Statement of Cash Flows for the nine months ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "interim condensed consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid interim condensed consolidated financial statements give a true and fair view in conformity with the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 (the "Act"), read with relevant rules issued thereunder and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at December 31, 2022, the consolidated profit and consolidated total comprehensive income for the three months and nine months ended on that date, changes in equity and its cash flows for the nine months ended on that date.

**Basis for Opinion**

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

**Management's Responsibilities for the Interim Condensed Consolidated Financial Statements**

The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with Ind AS 34 and other accounting principles generally accepted in India. The respective Boards of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the interim condensed consolidated financial statements by the Directors of the Company, as aforesaid.

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

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

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

 

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

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

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the interim condensed consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the Company's
internal financial controls.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor's report to the related disclosures in the interim condensed consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the overall presentation, structure and content of the interim condensed consolidated financial
statements, including the disclosures, and whether the interim condensed consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain sufficient appropriate audit evidence regarding the financial information of the entities within
the Group to express an opinion on the interim condensed consolidated financial statements. We are responsible for the direction, supervision
and performance of the audit of financial statements of such entities included in the interim condensed consolidated financial statements
of which we are the independent auditors.

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

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

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

---

| | |
|:---|:---|
| Place: Bengaluru<br> Date: January 12, 2023 | **For DELOITTE HASKINS & SELLS LLP**<br> Chartered Accountants<br> (Firm's Registration No. 117366W/W-100018)<br>**Sanjiv V. Pilgaonkar**<br> Partner<br> (Membership No.039826)<br> UDIN: 23039826BGXRXW3919 |

---

**INFOSYS LIMITED AND SUBSIDIARIES**

***Condensed Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the three months and nine months ended December 31, 2022***

 ****

---

| |
|:---|
| **Index** |
| Condensed Consolidated Balance Sheet |
| Condensed Consolidated Statement of Profit and Loss |
| Condensed Consolidated Statement of Changes in Equity |
| Condensed Consolidated Statement of Cash Flows |
| **Overview and Notes to the Interim Condensed Consolidated Financial Statements** |
| **1. Overview** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Company overview |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Basis of preparation of financial statements |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Basis of consolidation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Use of estimates and judgments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Critical accounting estimates and judgments |
| **2. Notes to the Interim Condensed Consolidated Financial Statements** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Business Combinations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Property, plant and equipment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Goodwill and intangible assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Investments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Loans |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Other financial assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Trade receivables |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Cash and cash equivalents |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Other assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 Financial instruments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 Equity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Other financial liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 Other liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 Provisions |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 Income taxes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 Revenue from operations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 Other income, net |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 Expenses |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 Leases |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 Basic and diluted shares used in computing earnings per equity share |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 Contingent liabilities and commitments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 Related party transactions |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 Segment reporting |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 Function wise classification of Condensed Consolidated Statement of Profit and Loss |

---

**INFOSYS LIMITED AND SUBSIDIARIES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Condensed Consolidated Balance Sheets as at** | **Note No.** | **December 31, 2022** | **March 31, 2022** |
| **ASSETS** |  |  |  |
| **Non-current assets** |  |  |  |
| Property, plant and equipment | 2.2 | 13067 | 13075 |
| Right-of-use assets | 2.19 | 6480 | 4823 |
| Capital work-in-progress |  | 236 | 416 |
| Goodwill | 2.3 | 7247 | 6195 |
| Other intangible assets |  | 1836 | 1707 |
| Financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 2.4 | 12386 | 13651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 2.5 | 44 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 2.6 | 2507 | 1460 |
| Deferred tax assets (net) |  | 1157 | 1212 |
| Income tax assets (net) |  | 6319 | 6098 |
| Other non-current assets | 2.9 | 2271 | 2029 |
| **Total non-current assets** |  | **53550** | **50700** |
| **Current assets** |  |  |  |
| Financial assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 2.4 | 8730 | 6673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 2.7 | 27660 | 22698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 2.8 | 11587 | 17472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | 2.5 | 278 | 248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 2.6 | 10830 | 8727 |
| Income tax assets (net) |  | *–* | 54 |
| Other Current assets | 2.9 | 13331 | 11313 |
| **Total current assets** |  | **72416** | **67185** |
| **Total assets** |  | **125966** | **117885** |
| **EQUITY AND LIABILITIES** |  |  |  |
| **Equity** |  |  |  |
| Equity share capital | 2.11 | 2086 | 2098 |
| Other equity |  | 72206 | 73252 |
| **Total equity attributable to equity holders of the Company** |  | **74292** | **75350** |
| Non-controlling interests |  | 381 | 386 |
| **Total equity** |  | **74673** | **75736** |
| **Liabilities** |  |  |  |
| **Non-current liabilities** |  |  |  |
| Financial Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 2.19 | 6577 | 4602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 2.12 | 1901 | 2337 |
| Deferred tax liabilities (net) |  | 1059 | 1156 |
| Other non-current liabilities | 2.13 | 551 | 451 |
| **Total non-current liabilities** |  | **10088** | **8546** |
| **Current liabilities** |  |  |  |
| Financial Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 2.19 | 1143 | 872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables |  | 4788 | 4134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 2.12 | 19518 | 15837 |
| Other current liabilities | 2.13 | 11171 | 9178 |
| Provisions | 2.14 | 1417 | 975 |
| Income tax liabilities (net) |  | 3168 | 2607 |
| **Total current liabilities** |  | **41205** | **33603** |
| **Total equity and liabilities** |  | **125966** | **117885** |

---

 

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

*As per our report of even date attached*

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

*Chartered Accountants*<br> Firm's Registration No :<br> 117366W/ W-100018<br>

---

| | | | |
|:---|:---|:---|:---|
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |

---

Bengaluru<br> January 12, 2023<br>

**INFOSYS LIMITED AND SUBSIDIARIES**

*(In ![](rupee-symbol.gif) crore, except equity share and per equity share data)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statement of Profit and Loss for the** | **Note No.** | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
| Revenue from operations | 2.16 | 38318 | 31867 | 109326 | 89365 |
| Other income, net | 2.17 | 769 | 512 | 2030 | 1658 |
| **Total income** |  | **39087** | **32379** | **111356** | **91023** |
| **Expenses** |  |  |  |  |  |
| Employee benefit expenses | 2.18 | 20272 | 16355 | 58048 | 47328 |
| Cost of technical sub-contractors |  | 3343 | 3511 | 10946 | 9019 |
| Travel expenses |  | 360 | 221 | 1099 | 518 |
| Cost of software packages and others | 2.18 | 3085 | 1861 | 8017 | 4543 |
| Communication expenses |  | 183 | 147 | 542 | 441 |
| Consultancy and professional charges |  | 401 | 520 | 1296 | 1364 |
| Depreciation and amortization expenses |  | 1125 | 899 | 3104 | 2586 |
| Finance cost |  | 80 | 53 | 202 | 150 |
| Other expenses | 2.18 | 1307 | 869 | 3246 | 2507 |
| **Total expenses** |  | **30156** | **24436** | **86500** | **68456** |
| **Profit before tax** |  | **8931** | **7943** | **24856** | **22567** |
| Tax expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current tax | 2.15 | 2195 | 2063 | 7027 | 5986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | 2.15 | 150 | 58 | (145) | 130 |
| **Profit for the period** |  | **6586** | **5822** | **17974** | **16451** |
| **Other comprehensive income** |  |  |  |  |  |
| *Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Remeasurement of the net defined benefit liability/asset, net |  | 29 | (53) | (17) | (72) |
| Equity instruments through other comprehensive income, net |  | 1 | *–* | 8 | 41 |
|  |  | **30** | **(53)** | **(9)** | **(31)** |
| *Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Fair value changes on derivatives designated as cash flow hedge, net |  | (57) | (7) | (43) | 4 |
| Exchange differences on translation of foreign operations |  | 676 | (33) | 715 | 91 |
| Fair value changes on investments, net |  | 48 | (77) | (298) | 16 |
|  |  | **667** | **(117)** | **374** | **111** |
| **Total other comprehensive income /(loss), net of tax** |  | **697** | **(170)** | **365** | **80** |
| **Total comprehensive income for the period** |  | **7283** | **5652** | **18339** | **16531** |
| **Profit attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owners of the Company |  | 6586 | 5809 | 17967 | 16425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | *–* | 13 | 7 | 26 |
|  |  | **6586** | **5822** | **17974** | **16451** |
| **Total comprehensive income attributable to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owners of the Company |  | 7268 | 5640 | 18322 | 16506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | 15 | 12 | 17 | 25 |
|  |  | **7283** | **5652** | **18339** | **16531** |
| **Earnings per Equity share** |  |  |  |  |  |
| Equity shares of par value ![](rupee-symbol.gif)5/- each |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (![](rupee-symbol.gif)) |  | 15.72 | 13.86 | 42.85 | 38.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (![](rupee-symbol.gif)) |  | 15.70 | 13.83 | 42.79 | 38.88 |
| Weighted average equity shares used in computing earnings per equity share | 2.20 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic (in shares) |  | 4190550470 | 4190865711 | 4192969201 | 4215373286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (in shares) |  | 4195924920 | 4198923902 | 4199312062 | 4224009404 |

---

 

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

*As per our report of even date attached*

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

*Chartered Accountants*<br> Firm's Registration No :<br> 117366W/ W-100018<br>

---

| | | | |
|:---|:---|:---|:---|
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |

---

Bengaluru<br> January 12, 2023<br>

**INFOSYS LIMITED AND SUBSIDIARIES**

**Condensed Consolidated Statement of Changes in Equity** 

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | | | |
| | | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | | | |
| **Particulars**<br>| <br>**Equity Share capital <sup>(1)</sup>** | **Capital reserve** | **Capital redemption reserve** | **Securities Premium** | **Retained earnings** | **General reserve** | **Share Options Outstanding Account** | **Special Economic Zone Re-investment reserve <sup>(2)</sup>** | **Other reserves <sup>(3)</sup>** | **Equity instruments through other comprehensive income** | **Exchange differences on translating the financial statements of a foreign operation** | **Effective portion of Cash Flow Hedges** | **Other items of other comprehensive income / (loss)** | <br>**Total equity attributable to equity holders of the Company** | <br>**Non-controlling interest** | <br>**Total equity** |
| **Balance as at April 1, 2021** | **2124** | **54** | **111** | **600** | **62643** | **2715** | **372** | **6385** | **6** | **158** | **1331** | **10** | **(158)** | **76351** | **431** | **76782** |
| **Changes in equity for the nine months ended December 31, 2021** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Profit for the period | *–* | *–* | *–* | *–* | 16425 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 16425 | 26 | 16451 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (72) | (72) | *–* | (72) |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 41 | *–* | *–* | *–* | 41 | *–* | 41 |
| Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 4 | *–* | 4 | *–* | 4 |
| Exchange differences on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 92 | *–* | *–* | 92 | (1) | 91 |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 16 | 16 | *–* | 16 |
| **Total Comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **16425** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **41** | **92** | **4** | **(56)** | **16506** | **25** | **16531** |
| Shares issued on exercise of employee stock options *(Refer to Note 2.11)* | 1 | *–* | *–* | 13 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 14 | *–* | 14 |
| Employee stock compensation expense *(Refer to Note 2.11)* | *–* | *–* | *–* | *–* | *–* | *–* | 285 | *–* | *–* | *–* | *–* | *–* | *–* | 285 | *–* | 285 |
| Transfer on account of options not exercised | *–* | *–* | *–* | *–* | *–* | 1 | (1) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Buyback of equity shares *(Refer to Note 2.11)*\*\* | (28) | *–* | *–* | (640) | (8822) | (1603) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (11093) | *–* | (11093) |
| Transaction costs relating to buyback\* | *–* | *–* | *–* | *–* | *–* | (26) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (26) | *–* | (26) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | 28 | *–* | *–* | (28) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transfer to legal reserve | *–* | *–* | *–* | *–* | (9) | *–* | *–* | *–* | 9 | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred on account of exercise of stock options | *–* | *–* | *–* | 101 | *–* | *–* | (101) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Income tax benefit arising on exercise of stock options | *–* | *–* | *–* | 3 | *–* | *–* | 16 | *–* | *–* | *–* | *–* | *–* | *–* | 19 | *–* | 19 |
| Dividends <sup>(1)</sup> | *–* | *–* | *–* | *–* | (12655) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (12655) | *–* | (12655) |
| Dividends paid to non controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (79) | (79) |
| Transferred to Special Economic Zone Re-investment reserve | *–* | *–* | *–* | *–* | (2244) | *–* | *–* | 2244 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred from Special Economic Zone Re-investment reserve on utilization | *–* | *–* | *–* | *–* | 633 | *–* | *–* | (633) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| **Balance as at December 31, 2021** | **2097** | **54** | **139** | **77** | **55971** | **1059** | **571** | **7996** | **15** | **199** | **1423** | **14** | **(214)** | **69401** | **377** | **69778** |

---

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | **OTHER EQUITY** | | | |
| | | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **RESERVES & SURPLUS** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | **Other comprehensive income** | | | |
| **Particulars**<br>| <br>**Equity Share capital <sup>(1)</sup>** | **Capital reserve** | **Capital redemption reserve** | **Securities Premium** | **Retained earnings** | **General reserve** | **Share Options Outstanding Account** | **Special Economic Zone Re-investment reserve <sup>(2)</sup>** | **Other reserves <sup>(3)</sup>** | **Equity instruments through other comprehensive income** | **Exchange differences on translating the financial statements of a foreign operation** | **Effective portion of Cash Flow Hedges** | **Other items of other comprehensive income / (loss)** | <br>**Total equity attributable to equity holders of the Company** | <br>**Non-controlling interest** | <br>**Total equity** |
| **Balance as at April 1, 2022** | **2098** | **54** | **139** | **200** | **61313** | **1061** | **606** | **8339** | **16** | **254** | **1560** | **2** | **(292)** | **75350** | **386** | **75736** |
| Impact on adoption of amendment to Ind AS 37<sup>#</sup> | *–* | *–* | *–* | *–* | (19) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (19) | *–* | (19) |
|  | **2098** | **54** | **139** | **200** | **61294** | **1061** | **606** | **8339** | **16** | **254** | **1560** | **2** | **(292)** | **75331** | **386** | **75717** |
| **Changes in equity for the nine months ended December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Profit for the period | *–* | *–* | *–* | *–* | 17967 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 17967 | 7 | 17974 |
| Remeasurement of the net defined benefit liability/asset, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (17) | (17) | *–* | (17) |
| Equity instruments through other comprehensive income, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 8 | *–* | *–* | *–* | 8 | *–* | 8 |
| Fair value changes on derivatives designated as cash flow hedge, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (43) | *–* | (43) | *–* | (43) |
| Exchange differences on translation of foreign operations | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 705 | *–* | *–* | 705 | 10 | 715 |
| Fair value changes on investments, net\* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (298) | (298) | *–* | (298) |
| **Total Comprehensive income for the period** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **17967** |  ***–*** |  ***–*** |  ***–*** |  ***–*** | **8** | **705** | **(43)** | **(315)** | **18322** | **17** | **18339** |
| Shares issued on exercise of employee stock options *(Refer to Note 2.11)* | 1 | *–* | *–* | 22 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | 23 | *–* | 23 |
| Employee stock compensation expense *(Refer to Note 2.11)* | *–* | *–* | *–* | *–* | *–* | *–* | 382 | *–* | *–* | *–* | *–* | *–* | *–* | 382 | *–* | 382 |
| Transferred to legal reserve | *–* | *–* | *–* | *–* | (3) | *–* | *–* | *–* | 3 | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred on account of exercise of stock options | *–* | *–* | *–* | 191 | *–* | *–* | (191) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred on account of options not exercised | *–* | *–* | *–* | *–* | *–* | 2 | (2) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Buyback of equity shares *(Refer to Note 2.11)*\*\* | (13) | *–* | *–* | (332) | (5820) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (6165) | *–* | (6165) |
| Transaction costs relating to buyback\* | *–* | *–* | *–* | (17) | (1) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (18) | *–* | (18) |
| Amount transferred to capital redemption reserve upon buyback | *–* | *–* | 11 | *–* | (2) | (9) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Income tax benefit arising on exercise of stock options | *–* | *–* | *–* | *–* | *–* | *–* | 49 | *–* | *–* | *–* | *–* | *–* | *–* | 49 | *–* | 49 |
| Dividends <sup>(1)</sup> | *–* | *–* | *–* | *–* | (13632) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (13632) | *–* | (13632) |
| Dividends paid to non controlling interest of subsidiary | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* | (22) | (22) |
| Transferred to Special Economic Zone Re-investment reserve | *–* | *–* | *–* | *–* | (2575) | *–* | *–* | 2575 | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| Transferred from Special Economic Zone Re-investment reserve on utilization | *–* | *–* | *–* | *–* | 869 | *–* | *–* | (869) | *–* | *–* | *–* | *–* | *–* | *–* | *–* | *–* |
| **Balance as at December 31, 2022** | **2086** | **54** | **150** | **64** | **58097** | **1054** | **844** | **10045** | **19** | **262** | **2265** | **(41)** | **(607)** | **74292** | **381** | **74673** |

---

 

*\** *Net of tax*

*\*\** *Including tax on buyback of ![](rupee-symbol.gif)1,165 crore and ![](rupee-symbol.gif)1,893 crore for the nine months ended December 31, 2022 and December 31, 2021 respectively.*

*<sup>#</sup>* *Impact on account of adoption of amendment to Ind AS 37 Provisions, Contingent Liabilities and Contingents Assets*

*<sup>(1)</sup>* *Net of treasury shares*

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

*<sup>(3)</sup>* *Under the Swiss Code of Obligation, few subsidiaries of Infosys Lodestone are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses or for measures designed to sustain the Company through difficult times, to prevent unemployment or to mitigate its consequences.*

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

*As per our report of even date attached*

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

*Chartered Accountants*<br> Firm's Registration No :<br> 117366W/ W-100018<br>

---

| | | | |
|:---|:---|:---|:---|
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |

---

Bengaluru<br> January 12, 2023<br>

**INFOSYS LIMITED AND SUBSIDIARIES**

**Condensed Consolidated Statement of Cash Flows**

**Accounting policy**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Particulars** | **Note No.** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** |
| **Cash flow from operating activities** |  |  |  |
| Profit for the period |  | 17974 | 16451 |
| **Adjustments to reconcile net profit to net cash provided by operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 2.15 | 6882 | 6116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 3104 | 2586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income |  | (1388) | (1228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance cost |  | 202 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss recognized / (reversed) under expected credit loss model |  | 197 | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translation of assets and liabilities, net |  | 373 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 386 | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments |  | 677 | 143 |
| **Changes in assets and liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and unbilled revenue |  | (7350) | (6069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, other financial assets and other assets |  | (2435) | (1464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables |  | 644 | 1118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities, other liabilities and provisions |  | 3263 | 5128 |
| **Cash generated from operations** |  | **22529** | **23405** |
| Income taxes paid |  | (6615) | (5763) |
| **Net cash generated by operating activities** |  | **15914** | **17642** |
| **Cash flows from investing activities** |  |  |  |
| Expenditure on property, plant and equipment and intangibles |  | (1805) | (1533) |
| Deposits placed with corporation |  | (904) | (786) |
| Redemption of deposits placed with Corporation |  | 671 | 629 |
| Interest and dividend received |  | 1267 | 1554 |
| Payment towards acquisition of business, net of cash acquired | 2.1 | (910) | *–* |
| Payment of contingent consideration pertaining to acquisition of business |  | (60) | (53) |
| Escrow and other deposits pertaining to Buyback |  | (592) | (420) |
| Redemption of escrow and other deposits pertaining to Buyback |  | *–* | 420 |
| Other receipts |  | 57 | 53 |
| Other payments |  | *–* | (22) |
| Payments to acquire Investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds |  | (13) | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual funds |  | (54567) | (39805) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | (6794) | (1473) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | (2338) | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures |  | (249) | (1216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities |  | (1569) | (2300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | (18) | (24) |
| Proceeds on sale of Investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds |  | 13 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual funds |  | 53546 | 38903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 7605 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | 1300 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures |  | 295 | 2076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities |  | 1882 | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities |  | 99 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | *–* | 9 |
| **Net cash (used in) / generated from investing activities** |  | **(3084)** | **(2036)** |
| **Cash flows from financing activities:** |  |  |  |
| Payment of lease liabilities |  | (866) | (644) |
| Payment of dividends |  | (13633) | (12655) |
| Payment of dividend to non-controlling interest of subsidiary |  | (22) | (79) |
| Shares issued on exercise of employee stock options |  | 23 | 14 |
| Other receipts |  | 121 | 209 |
| Other payments |  | (360) | (22) |
| Buyback of equity shares including transaction cost and tax on buyback |  | (3928) | (11125) |
| **Net cash used in financing activities** |  | **(18665)** | **(24302)** |
| Net increase / (decrease) in cash and cash equivalents |  | (5835) | (8696) |
| Effect of exchange rate changes on cash and cash equivalents |  | (50) | (75) |
| **Cash and cash equivalents at the beginning of the period** | 2.8 | 17472 | 24714 |
| **Cash and cash equivalents at the end of the period** | 2.8 | **11587** | **15943** |
| **Supplementary information:** |  |  |  |
| Restricted cash balance | 2.8 | 384 | 490 |

---

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

*As per our report of even date attached*

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

*Chartered Accountants*<br> Firm's Registration No :<br> 117366W/ W-100018<br>

---

| | | | |
|:---|:---|:---|:---|
| Sanjiv V. Pilgaonkar<br> *Partner*<br> Membership No. 039826 | Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | D. Sundaram<br> *Director* |
|  | Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |

---

Bengaluru<br> January 12, 2023<br>

X5AO<br>

**INFOSYS LIMITED AND SUBSIDIARIES**

**Overview and notes to the Interim Condensed Consolidated Financial Statements** 

**1. Overview**

**1.1 Company overview**

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

Infosys together with its subsidiaries and controlled trusts is hereinafter referred to as 'the Group'.

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

The Group's interim condensed consolidated financial statements are approved for issue by the Company's Board of Directors on January 12, 2023.

**1.2 Basis of preparation of financial statements**

These interim condensed consolidated financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting , under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ('the Act') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report for the year ended March 31, 2022. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

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

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

**1.3 Basis of consolidation**

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

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

**1.4 Use of estimates and judgments**

The preparation of the interim condensed consolidated financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in *Note no. 1.5*. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgements are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements.

**1.5 Critical accounting estimates and judgments**

**a. Revenue recognition**

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

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

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

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

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

**b. Income taxes**

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

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

In assessing the realizability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced *(Refer to Notes 2.15 and 2.21)*.

**c. Business combinations and intangible assets**

Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by the Management *(Refer to Note 2.1).*

**d. Property, plant and equipment** 

Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology *(Refer to Note 2.2)*.

**e. Impairment of Goodwill**

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

The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins *(Refer to Note 2.3)*.

**2. Notes to the Interim Condensed Consolidated Financial Statements**

**2.1 BUSINESS COMBINATIONS**

**Accounting policy**

Business combinations have been accounted for using the acquisition method under the provisions of Ind AS 103, Business Combinations.

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

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

Business combinations between entities under common control is accounted for at carrying value of the assets acquired and liabilities assumed in the Group's consolidated financial statements.

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

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

**Acquisition**

**Oddity**

On April 20, 2022, Infosys Germany GmbH (a wholly-owned subsidiary of Infosys Consulting Pte. Ltd) acquired 100% voting interests in oddity GmbH, oddity group services GmbH, oddity space GmbH, oddity jungle GmbH, oddity code GmbH and oddity waves GmbH (collectively known as oddity), Germany-based digital marketing, experience, and commerce agency. This acquisition is expected to strengthen the Group's creative, branding and experience design capabilities in Germany and across Europe.

The purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Component** | **Acquiree's carrying amount** | **Fair value adjustments** | **Purchase price allocated** |
| Net Assets<sup>(1)</sup> | 49 | *–* | 49 |
| Intangible assets – |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer contracts and relationships<sup>#</sup> | *–* | 99 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities on intangible assets | *–* | (30) | (30) |
| **Total** | **49** | **69** | **118** |
| Goodwill |  |  | 178 |
| **Total purchase price** |  |  | **296** |

---

** 

*<sup>(1)</sup>* *Includes cash and cash equivalents acquired of ![](rupee-symbol.gif) 21 crore.*

*<sup>#</sup>* *The estimated useful life is around 5 years*

The excess of the purchase consideration paid over the fair value of 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.

The purchase consideration of ![](rupee-symbol.gif)296 crore includes cash of ![](rupee-symbol.gif)251 crore and contingent consideration with an estimated fair value of ![](rupee-symbol.gif)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 and discount rate of 12.5%. The undiscounted value of contingent consideration as of December 31, 2022 was ![](rupee-symbol.gif)57 crore. Additionally, these acquisition have 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 the respective years. Bonus is recognized in employee benefit expenses in the Statement of Profit and Loss over the period of service.

Fair value of trade receivables acquired, is ![](rupee-symbol.gif)39 crore as of acquisition date and as of December 31, 2022 the amounts are fully collected.

The transaction costs of ![](rupee-symbol.gif)4 crore related to the acquisition have been included under administrative expenses of Consolidated Statement of Profit and Loss for the quarter ended June 30, 2022.

**BASE life science A/S**

On September 01, 2022, Infosys Consulting Pte. Ltd (a wholly-owned subsidiary of Infosys Limited) acquired 100% voting interests in BASE life science A/S, a consulting and technology firm in the life sciences industry in Europe. This acquisition is expected to augment the Group's life sciences expertise, scale its digital transformation capabilities with cloud based industry solutions and expand its presence in Nordics region and across Europe.

The purchase price allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| **Component** | **Acquiree's carrying amount** | **Fair value adjustments** | **Purchase price allocated** |
| Net Assets<sup>(1)</sup> | 54 | *–* | 54 |
| Intangible assets – |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer contracts and relationships<sup>#</sup> | *–* | 175 | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vendor relationships<sup>#</sup> | *–* | 30 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brand<sup>#</sup> | *–* | 24 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities on intangible assets | *–* | (50) | (50) |
| **Total** | **54** | **179** | **233** |
| Goodwill |  |  | 452 |
| **Total purchase price** |  |  | **685** |

---

** 

*<sup>(1)</sup>* *Includes cash and cash equivalents acquired of ![](rupee-symbol.gif) 5 crore.*

*#* *Useful lives are estimated to be in the range of 1 to 6 years*

The excess of the purchase consideration paid over the fair value of 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.

Additionally, this acquisition has shareholder and employee retention payouts payable to the employees of the acquiree over three years, subject to their continuous employment with the group. Performance and retention bonus is recognized in employee benefit expenses in the Statement of Comprehensive Income over the period of service.

Fair value of trade receivables acquired, is ![](rupee-symbol.gif)72 crore as of acquisition date and as of December 31, 2022 the amounts are substantially collected.

The transaction costs of 3 crore related to the acquisition have been included under administrative expenses in the Consolidated Statement of Profit and Loss for the quarter ended September 30, 2022.

**2.2 PROPERTY, PLANT AND EQUIPMENT**

**Accounting policy**

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

---

| | |
|:---|:---|
| Buildings *<sup>(1)</sup>* | 22-25 years |
| Plant and machinery *<sup>(1)(2)</sup>* | 5 years |
| Office equipment | 5 years |
| Computer equipment *<sup>(1)</sup>* | 3-5 years |
| Furniture and fixtures *<sup>(1)</sup>* | 5 years |
| Vehicles*<sup>(1)</sup>* | 5 years |
| Leasehold improvements | Lower of useful life of the asset or lease term |

---

** 

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

*<sup>(2)</sup>* *Includes Solar plant with a useful life of 20 years*

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

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

**Impairment**

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

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

The changes in the carrying value of property, plant and equipment for the three months ended December 31, 2022 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land - Freehold** | **Buildings *<sup>(1)</sup>*** | **Plant and machinery** | **Office Equipment** | **Computer equipment** | **Furniture and fixtures** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2022** | **1431** | **11328** | **3276** | **1435** | **8897** | **2359** | **1306** | **44** | **30076** |
| Additions - Business Combination *(Refer to Note 2.1)* |  ***–*** |  ***–*** | *–* | *–* | *–* | *–* | *–* |  ***–*** | *–* |
| Additions | *–* | 165 | 89 | 32 | 348 | 100 | 31 | *–* | 765 |
| Deletions\*\* | *–* | *–* | (1) | (6) | (393) | (17) | (1) | *–* | (418) |
| Translation difference | *–* | 37 | 4 | 5 | 43 | 8 | 17 | *–* | 114 |
| **Gross carrying value as at December 31, 2022** | **1431** | **11530** | **3368** | **1466** | **8895** | **2450** | **1353** | **44** | **30537** |
| **Accumulated depreciation as at October 1, 2022** | *–* | (4308) | (2473) | (1177) | (6360) | (1871) | (930) | (38) | (17157) |
| Depreciation | *–* | (109) | (70) | (32) | (343) | (61) | (49) | (1) | (665) |
| Accumulated depreciation on deletions\*\* | *–* | *–* | *–* | 6 | 392 | 17 | 1 | *–* | 416 |
| Translation difference | *–* | (8) | (4) | (3) | (28) | (7) | (14) | *–* | (64) |
| **Accumulated depreciation as at December 31, 2022** | *–* | **(4425)** | **(2547)** | **(1206)** | **(6339)** | **(1922)** | **(992)** | **(39)** | **(17470)** |
| **Carrying value as at October 1, 2022** | **1431** | **7020** | **803** | **258** | **2537** | **488** | **376** | **6** | **12919** |
| **Carrying value as at December 31, 2022** | **1431** | **7105** | **821** | **260** | **2556** | **528** | **361** | **5** | **13067** |

---

The changes in the carrying value of property, plant and equipment for the three months ended December 31, 2021 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land - Freehold** | **Buildings *<sup>(1)</sup>*** | **Plant and machinery** | **Office Equipment** | **Computer equipment** | **Furniture and fixtures** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at October 1, 2021** | **1412** | **11047** | **3431** | **1403** | **7834** | **2232** | **1229** | **44** | **28632** |
| Additions | 18 | 60 | 63 | 14 | 338 | 24 | 9 | *–* | 526 |
| Deletions\* | *–* | *–* | (45) | (4) | (138) | (5) | (36) | *–* | (228) |
| Translation difference | *–* | 16 | 1 | 1 | (1) | 1 | 3 | *–* | 21 |
| **Gross carrying value as at December 31, 2021** | **1430** | **11123** | **3450** | **1414** | **8033** | **2252** | **1205** | **44** | **28951** |
| **Accumulated depreciation as at October 1, 2021** |  ***–*** | **(3884)** | **(2540)** | **(1095)** | **(5693)** | **(1680)** | **(792)** | **(35)** | **(15719)** |
| Depreciation |  ***–*** | (105) | (64) | (30) | (274) | (54) | (45) | (1) | (573) |
| Accumulated depreciation on deletions\* |  ***–*** | *–* | 26 | 4 | 138 | 4 | 26 | *–* | 198 |
| Translation difference |  ***–*** | (4) | *–* | (2) | (1) | (1) | *–* | *–* | (8) |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3993)** | **(2578)** | **(1123)** | **(5830)** | **(1731)** | **(811)** | **(36)** | **(16102)** |
| **Carrying value as at October 1, 2021** | **1412** | **7163** | **891** | **308** | **2141** | **552** | **437** | **9** | **12913** |
| **Carrying value as at December 31, 2021** | **1430** | **7130** | **872** | **291** | **2203** | **521** | **394** | **8** | **12849** |

---

The changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2022 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land - Freehold** | **Buildings *<sup>(1)</sup>*** | **Plant and machinery** | **Office Equipment** | **Computer equipment** | **Furniture and fixtures** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2022** | **1431** | **11224** | **3210** | **1427** | **8527** | **2278** | **1234** | **44** | **29375** |
| Additions - Business Combination *(Refer to Note 2.1)* |  ***–*** | *–* | *–* | 5 | 6 | 1 | 2 |  ***–*** | 14 |
| Additions | *–* | 308 | 164 | 67 | 1016 | 202 | 117 | 1 | 1875 |
| Deletions\*\* | *–* | *–* | (7) | (36) | (686) | (37) | (12) | (1) | (779) |
| Translation difference | *–* | (2) | 1 | 3 | 32 | 6 | 12 | *–* | 52 |
| **Gross carrying value as at December 31, 2022** | **1431** | **11530** | **3368** | **1466** | **8895** | **2450** | **1353** | **44** | **30537** |
| **Accumulated depreciation as at April 1, 2022** |  ***–*** | **(4100)** | **(2344)** | **(1150)** | **(6034)** | **(1779)** | **(856)** | **(37)** | **(16300)** |
| Depreciation |  ***–*** | (325) | (208) | (90) | (968) | (174) | (139) | (3) | (1907) |
| Accumulated depreciation on deletions\*\* |  ***–*** | *–* | 6 | 36 | 685 | 37 | 12 | 1 | 777 |
| Translation difference |  ***–*** | *–* | (1) | (2) | (22) | (6) | (9) | *–* | (40) |
| **Accumulated depreciation as at December 31, 2022** |  ***–*** | **(4425)** | **(2547)** | **(1206)** | **(6339)** | **(1922)** | **(992)** | **(39)** | **(17470)** |
| **Carrying value as at April 1, 2022** | **1431** | **7124** | **866** | **277** | **2493** | **499** | **378** | **7** | **13075** |
| **Carrying value as at December 31, 2022** | **1431** | **7105** | **821** | **260** | **2556** | **528** | **361** | **5** | **13067** |

---

\*\* During the three months and nine months ended December 31, 2022, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)275 crore (net book value: Nil) and ![](rupee-symbol.gif)504 crore (net book value: Nil), respectively were retired.

The changes in the carrying value of property, plant and equipment for the nine months ended December 31, 2021 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Land - Freehold** | **Buildings *<sup>(1)</sup>*** | **Plant and machinery** | **Office Equipment** | **Computer equipment** | **Furniture and fixtures** | **Leasehold Improvements** | **Vehicles** | **Total** |
| **Gross carrying value as at April 1, 2021** | **1399** | **10565** | **3296** | **1371** | **7639** | **2149** | **1188** | **44** | **27651** |
| Additions | 31 | 515 | 197 | 53 | 982 | 112 | 55 | *–* | 1945 |
| Deletions\* | *–* | *–* | (47) | (12) | (595) | (12) | (46) | *–* | (712) |
| Translation difference | *–* | 43 | 4 | 2 | 7 | 3 | 8 | *–* | 67 |
| **Gross carrying value as at December 31, 2021** | **1430** | **11123** | **3450** | **1414** | **8033** | **2252** | **1205** | **44** | **28951** |
| **Accumulated depreciation as at April 1, 2021** |  ***–*** | **(3675)** | **(2425)** | **(1043)** | **(5636)** | **(1580)** | **(700)** | **(32)** | **(15091)** |
| Depreciation |  ***–*** | (311) | (179) | (90) | (782) | (159) | (141) | (4) | (1666) |
| Accumulated depreciation on deletions\* |  ***–*** |  ***–*** | 28 | 12 | 595 | 11 | 36 |  ***–*** | 682 |
| Translation difference |  ***–*** | (7) | (2) | (2) | (7) | (3) | (6) |  ***–*** | (27) |
| **Accumulated depreciation as at December 31, 2021** |  ***–*** | **(3993)** | **(2578)** | **(1123)** | **(5830)** | **(1731)** | **(811)** | **(36)** | **(16102)** |
| **Carrying value as at April 1, 2021** | **1399** | **6890** | **871** | **328** | **2003** | **569** | **488** | **12** | **12560** |
| **Carrying value as at December 31, 2021** | **1430** | **7130** | **872** | **291** | **2203** | **521** | **394** | **8** | **12849** |

---

\* During the three months ended and nine months ended December 31, 2021, certain assets which were old and not in use having gross book value of ![](rupee-symbol.gif)54 crore (net book value: Nil) and ![](rupee-symbol.gif)316 crore (net book value: Nil) respectively, were retired.

*<sup>(1)</sup>* *Buildings include ![](rupee-symbol.gif)250/- being the value of five shares of ![](rupee-symbol.gif)50/- each in Mittal Towers Premises Co-operative Society Limited.*

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

**2.3 GOODWILL AND INTANGIBLE ASSETS**

**2.3.1 Goodwill**

**Accounting policy**

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

**Impairment**

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

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Carrying value at the beginning** | **6195** | **6079** |
| Goodwill on acquisitions *(Refer to Note 2.1)* | 630 | *–* |
| Translation differences | 422 | 116 |
| **Carrying value at the end** | **7247** | **6195** |

---

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

**2.3.2 Intangible Assets**

**Accounting policy**

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

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

**Impairment**

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

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

**2.4 INVESTMENTS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current Investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unquoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities | 213 | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity instruments | 2 | 2 |
|  | **215** | **194** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preference securities | *–* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compulsorily convertible debentures | *–* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)</sup> | 158 | 152 |
|  | **158** | **183** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Quoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 14 |  ***–*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 1743 | 1901 |
|  | **1757** | **1901** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | 3002 | 3718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities | 7254 | 7655 |
|  | **10256** | **11373** |
| **Total non-current investments** | **12386** | **13651** |
| **Current Investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unquoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through profit or loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | 3165 | 2012 |
|  | **3165** | **2012** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Paper | 1064 |  ***–*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 2764 | 3429 |
|  | **3828** | **3429** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Quoted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at amortized cost** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | 8 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds | 350 | 200 |
|  | **358** | **221** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments carried at fair value through other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | 1067 | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities | 312 | 516 |
|  | **1379** | **1011** |
| **Total current investments** | **8730** | **6673** |
| **Total investments** | **21116** | **20324** |
| Aggregate amount of quoted investments | 13750 | 14506 |
| Market value of quoted investments (including interest accrued), current | 1773 | 1247 |
| Market value of quoted investments (including interest accrued), non current | 12245 | 13612 |
| Aggregate amount of unquoted investments | 7366 | 5818 |
| Investments carried at amortized cost | 2115 | 2122 |
| Investments carried at fair value through other comprehensive income | 15678 | 16007 |
| Investments carried at fair value through profit or loss | 3323 | 2195 |

---

** 

*<sup>(1)</sup>* *Uncalled capital commitments outstanding as at December 31, 2022 and March 31, 2022 was ![](rupee-symbol.gif)94 crore and ![](rupee-symbol.gif)28 crore, respectively.*

*Refer to Note 2.10 for Accounting policies on Financial Instruments.*

**Method of fair valuation:**

*(In ![](rupee-symbol.gif) crore)*

---

| | | | |
|:---|:---|:---|:---|
| | | **Fair value as at** | **Fair value as at** |
| **Class of investment** | **Method** | **December 31, 2022** | **March 31, 2022** |
| Liquid mutual fund units | Quoted price | 3165 | 2012 |
| Tax free bonds and government bonds | Quoted price and market observable inputs | 2319 | 2447 |
| Non-convertible debentures | Quoted price and market observable inputs | 4069 | 4213 |
| Government securities | Quoted price and market observable inputs | 7566 | 8171 |
| Commercial Papers | Market observable inputs | 1064 | *–* |
| Certificates of deposit | Market observable inputs | 2764 | 3429 |
| Unquoted equity and preference securities - carried at fair value through other comprehensive income | Discounted cash flows method, Market multiples method, Option pricing model | 215 | 194 |
| Unquoted equity and preference securities - carried at 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 |
| Others | Discounted cash flows method, Market multiples method, Option pricing model | 158 | 152 |
| **Total** |  | **21320** | **20649** |

---

 

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

**2.5 LOANS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non Current** |  |  |
| Loans considered good - Unsecured |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to employees | 44 | 34 |
|  | **44** | **34** |
| Loans credit impaired - Unsecured |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to employees | *–* | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit impairment | *–* | *–* |
|  |  ***–*** |  ***–*** |
| **Total non-current loans** | **44** | **34** |
| **Current** |  |  |
| Loans considered good - Unsecured |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to employees | 278 | 248 |
| **Total current loans** | **278** | **248** |
| **Total loans** | **322** | **282** |

---

**2.6 OTHER FINANCIAL ASSETS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits <sup>(1)</sup> | 46 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental deposits <sup>(1)</sup> | 226 | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>(1)#</sup> | 1137 | 695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment in sublease of right of use asset <sup>(1)</sup> | 320 | 322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted deposits <sup>(1)\*</sup> | 95 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)</sup> | 683 | 177 |
| **Total non-current other financial assets** | **2507** | **1460** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits <sup>(1)</sup> | 10 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental deposits <sup>(1)</sup> | 38 | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted deposits <sup>(1)\*</sup> | 2348 | 2177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>(1)#</sup> | 7056 | 5659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest accrued but not due <sup>(1)</sup> | 382 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward and options contracts <sup>(2) (3)</sup> | 87 | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Escrow and other deposits pertaining to buyback (Refer to Note 2.11) <sup>(1)</sup> \*\* | 592 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment in sublease of right of use asset <sup>(1)</sup> | 53 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others <sup>(1)</sup> | 264 | 271 |
| **Total current other financial assets** | **10830** | **8727** |
| **Total other financial assets** | **13337** | **10187** |
| <sup>(1)</sup> Financial assets carried at amortized cost | 13250 | 10044 |
| <sup>(2)</sup> Financial assets carried at fair value through other comprehensive income | 13 | 20 |
| <sup>(3)</sup> Financial assets carried at fair value through profit or loss | 74 | 123 |

---

\* Restricted deposits represent deposits with financial institutions to settle employee-related obligations as and when they arise during the normal course of business.

\*\* Includes ![](rupee-symbol.gif)240 crore towards shares purchased but not settled as of December 31, 2022

# Classified as financial asset as right to consideration is unconditional and is due only after a passage of time.

**2.7 TRADE RECEIVABLES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable considered good - Unsecured | 28243 | 23252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for expected credit loss | 583 | 554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable considered good - Unsecured | 27660 | 22698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable - credit impaired - Unsecured | 123 | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit impairment | 123 | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Receivable - credit impaired - Unsecured | *–* | *–* |
| **Total trade receivables** | **27660** | **22698** |

---

**2.8 CASH AND CASH EQUIVALENTS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Balances with banks |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In current and deposit accounts | 9349 | 13942 |
| Cash on hand | *–* | *–* |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with financial institutions | 2238 | 3530 |
| **Total cash and cash equivalents** | **11587** | **17472** |
| *Balances with banks in unpaid dividend accounts* | 35 | 36 |
| *Deposit with more than 12 months maturity* | 103 | 1616 |
| *Balances with banks held as margin money deposits against guarantees* | 1 | 1 |

---

Cash and cash equivalents as at December 31, 2022 and March 31, 2022 include restricted cash and bank balances of ![](rupee-symbol.gif)384 crore and ![](rupee-symbol.gif)471 crore respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company and bank balances held as margin money deposits against guarantees.

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

**2.9 OTHER ASSETS**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital advances | 114 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances other than capital advances |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes and others | 685 | 674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>#</sup> | 571 | 246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plan assets | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 147 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Contract Cost \* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 186 | 593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 548 | 309 |
| **Total Non-Current other assets** | **2271** | **2029** |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances other than capital advances |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment to vendors for supply of goods | 90 | 193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenues <sup>#</sup> | 6083 | 5909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes and others | 2913 | 1941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 2784 | 1996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Contract Cost \* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of obtaining a contract | 954 | 858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of fulfillment | 165 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 342 | 325 |
| **Total Current other assets** | **13331** | **11313** |
| **Total other assets** | **15602** | **13342** |

---

 

<sup>#</sup> Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

\* Includes technology assets taken over by the 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 transferred to 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 for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to ![](rupee-symbol.gif)747 crore. During the nine months ended December 31, 2022, ![](rupee-symbol.gif)38 crore was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction (Refer to Note 2.12)

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

**2.10 FINANCIAL INSTRUMENTS**

**Accounting policy**

**2.10.1 Initial recognition**

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

**2.10.2 Subsequent measurement**

**a. Non-derivative financial instruments**

**(i) Financial assets carried at amortized cost**

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

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

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

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

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

***(iv) Financial liabilities***

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss.

**b. Derivative financial instruments**

The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for 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 constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

***(ii) Cash flow hedge***

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

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

**2.10.3 Derecognition of financial instruments**

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

**2.10.4 Fair value of financial instruments**

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

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

**2.10.5 Impairment** 

The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates.

The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in Consolidated Statement of Profit and Loss.

**Financial instruments by category**

The carrying value and fair value of financial instruments by categories as at December 31, 2022 are as follows:

*(In ![](rupee-symbol.gif) crore)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets/ liabilities at <br>fair value through profit or loss** | **Financial assets/ liabilities at <br>fair value through profit or loss** | **Financial assets/liabilities at <br>fair value through OCI** | **Financial assets/liabilities at <br>fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon <br>initial recognition** | **Mandatory** | **Equity instruments <br>designated upon <br>initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents *(Refer to Note 2.8)* | 11587 | *–* | *–* | *–* | *–* | 11587 | 11587 |
| Investments *(Refer to Note 2.4)* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities | *–* | *–* | *–* | 215 | *–* | 215 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds | 2115 | *–* | *–* | *–* | *–* | 2115 | 2319 <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 3165 | *–* | *–* | 3165 | 3165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | *–* | *–* | *–* | *–* | 4069 | 4069 | 4069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities | *–* | *–* | *–* | *–* | 7566 | 7566 | 7566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Paper | *–* | *–* | *–* | *–* | 1064 | 1064 | 1064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | *–* | *–* | *–* | *–* | 2764 | 2764 | 2764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | *–* | *–* | 158 | *–* | *–* | 158 | 158 |
| Trade receivables *(Refer to Note 2.7)* | 27660 | *–* | *–* | *–* | *–* | 27660 | 27660 |
| Loans *(Refer to Note 2.5)* | 322 | *–* | *–* | *–* | *–* | 322 | 322 |
| Other financials assets *(Refer to Note 2.6)*<sup>(3)</sup> | 13250 | *–* | 74 | *–* | 13 | 13337 | 13269 <sup>(2)</sup> |
| **Total** | **54934** |  ***–*** | **3397** | **215** | **15476** | **74022** | **74158** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables | 4788 | *–* | *–* | *–* | *–* | 4788 | 4788 |
| Lease liabilities *(Refer to Note 2.19)* | 7720 | *–* | *–* | *–* | *–* | 7720 | 7720 |
| Financial Liability under option arrangements *(Refer to Note 2.12)* | *–* | *–* | 671 | *–* | *–* | 671 | 671 |
| Other financial liabilities *(Refer to Note 2.12)* | 17942 | *–* | 286 | *–* | 33 | 18261 | 18261 |
| **Total** | **30450** |  ***–*** | **957** |  ***–*** | **33** | **31440** | **31440** |

---

** 

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ![](rupee-symbol.gif)68 crore*

*<sup>(3)</sup>* *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 ![](rupee-symbol.gif) crore)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Financial assets/ liabilities at <br>fair value through profit or loss** | **Financial assets/ liabilities at <br>fair value through profit or loss** | **Financial assets/liabilities at <br>fair value through OCI** | **Financial assets/liabilities at <br>fair value through OCI** | | |
| **Particulars** | **Amortized cost** | **Designated upon <br>initial recognition** | **Mandatory** | **Equity instruments <br>designated upon <br>initial recognition** | **Mandatory** | **Total carrying value** | **Total fair value** |
| **Assets:** |  |  |  |  |  |  |  |
| Cash and cash equivalents *(Refer to Note 2.8)* | 17472 | *–* | *–* | *–* | *–* | 17472 | 17472 |
| Investments *(Refer to Note 2.4)* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and preference securities | *–* | *–* | 24 | 194 | *–* | 218 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compulsorily convertible debentures | *–* | *–* | 7 | *–* | *–* | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and government bonds | 2122 | *–* | *–* | *–* | *–* | 2122 | 2447 <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid mutual fund units | *–* | *–* | 2012 | *–* | *–* | 2012 | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non convertible debentures | *–* | *–* | *–* | *–* | 4213 | 4213 | 4213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government securities | *–* | *–* | *–* | *–* | 8171 | 8171 | 8171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | *–* | *–* | *–* | *–* | 3429 | 3429 | 3429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | *–* | *–* | 152 | *–* | *–* | 152 | 152 |
| Trade receivables *(Refer to Note 2.7)* | 22698 | *–* | *–* | *–* | *–* | 22698 | 22698 |
| Loans *(Refer to Note 2.5)* | 282 | *–* | *–* | *–* | *–* | 282 | 282 |
| Other financials assets *(Refer to Note 2.6)*<sup>(3)</sup> | 10044 | *–* | 123 |  | 20 | 10187 | 10096 <sup>(2)</sup> |
| **Total** | **52618** |  ***–*** | **2318** | **194** | **15833** | **70963** | **71197** |
| **Liabilities:** |  |  |  |  |  |  |  |
| Trade payables | 4134 | *–* | *–* | *–* | *–* | 4134 | 4134 |
| Lease liabilities *(Refer to Note 2.19)* | 5474 | *–* | *–* | *–* | *–* | 5474 | 5474 |
| Financial Liability under option arrangements *(Refer to Note 2.12)* | *–* | *–* | 655 | *–* | *–* | 655 | 655 |
| Other financial liabilities *(Refer to Note 2.12)* | 15061 | *–* | 181 | *–* | 3 | 15245 | 15245 |
| **Total** | **24669** |  ***–*** | **836** |  ***–*** | **3** | **25508** | **25508** |

---

** 

*<sup>(1)</sup>* *On account of fair value changes including interest accrued*

*<sup>(2)</sup>* *Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ![](rupee-symbol.gif)91 crore*

*<sup>(3)</sup>* *Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones*

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

**Fair value hierarchy**

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

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

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

Fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at December 31, 2022 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As at December 31, 2022** | **Fair value measurement at end <br>of the reporting period using** | **Fair value measurement at end <br>of the reporting period using** | **Fair value measurement at end <br>of the reporting period using** |
| **Particulars** | | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in liquid mutual funds *(Refer to Note 2.4)* | 3165 | 3165 | *–* | *–* |
| Investments in tax free bonds (Refer to Note 2.4) | 2297 | 897 | 1400 | *–* |
| Investments in government bonds *(Refer to Note 2.4)* | 22 | 22 | *–* | *–* |
| Investments in non convertible debentures *(Refer to Note 2.4)* | 4069 | 2206 | 1863 | *–* |
| Investment in government securities *(Refer to Note 2.4)* | 7566 | 7411 | 155 | *–* |
| Investments in equity instruments *(Refer to Note 2.4)* | 2 | *–* | *–* | 2 |
| Investments in preference securities *(Refer to Note 2.4)* | 213 | *–* | *–* | 213 |
| Investments in commercial paper *(Refer to Note 2.4)* | 1064 | *–* | 1064 | *–* |
| Investments in certificates of deposit *(Refer to Note 2.4)* | 2764 | *–* | 2764 | *–* |
| Other investments *(Refer to Note 2.4)* | 158 | *–* | *–* | 158 |
| Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts *(Refer to Note 2.6)* | 87 | *–* | 87 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts *(Refer to Note 2.12)* | 225 | *–* | 225 | *–* |
| Financial liability under option arrangements *(Refer to Note 2.12)* | 671 | *–* | *–* | 671 |
| Liability towards contingent consideration *(Refer to Note 2.12)*<sup>(1)</sup> | 94 | *–* | *–* | 94 |

---

** 

*<sup>(1)</sup>* *Discount rate pertaining to contingent consideration ranges from 9% to 14%*

During the nine months ended December 31, 2022, non-convertible debentures and tax free bonds of ![](rupee-symbol.gif)974 crore was transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, non-convertible debentures, tax free bonds and government securities of ![](rupee-symbol.gif)2,688 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

Fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2022 was as follows:

*(In ![](rupee-symbol.gif) crore)*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As at March 31, 2022** | **Fair value measurement at end <br>of the reporting period using** | **Fair value measurement at end <br>of the reporting period using** | **Fair value measurement at end <br>of the reporting period using** |
| **Particulars** | | **Level 1** | **Level 2** | **Level 3** |
| **Assets** |  |  |  |  |
| Investments in liquid mutual funds *(Refer to Note 2.4)* | 2012 | 2012 | *–* | *–* |
| Investments in tax free bonds *(Refer to Note 2.4)* | 2425 | 1238 | 1187 | *–* |
| Investments in government bonds *(Refer to Note 2.4)* | 22 | 22 | *–* | *–* |
| Investments in non convertible debentures *(Refer to Note 2.4)* | 4213 | 3736 | 477 | *–* |
| Investment in government securities *(Refer to Note 2.4)* | 8171 | 8046 | 125 | *–* |
| Investments in equity instruments *(Refer to Note 2.4)* | 2 | *–* | *–* | 2 |
| Investments in preference securities *(Refer to Note 2.4)* | 216 | *–* | *–* | 216 |
| Investments in certificates of deposit *(Refer to Note 2.4)* | 3429 | *–* | 3429 | *–* |
| Investments in compulsorily convertible debentures *(Refer to Note 2.4)* | 7 | *–* | *–* | 7 |
| Other investments *(Refer to Note 2.4)* | 152 | *–* | *–* | 152 |
| Derivative financial instruments - gain on outstanding foreign exchange forward and option contracts *(Refer to Note 2.6)* | 143 | *–* | 143 | *–* |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments - loss on outstanding foreign exchange forward and option contracts *(Refer to Note 2.12)* | 61 | *–* | 61 | *–* |
| Financial liability under option arrangements *(Refer to Note 2.12)* | 655 | *–* | *–* | 655 |
| Liability towards contingent consideration *(Refer to Note 2.12)<sup>(1)</sup>* | 123 | *–* | *–* | 123 |

---

** 

*<sup>(1)</sup>* *Discount rate pertaining to contingent consideration ranges from 8% to 14.5%*

During the year ended March 31, 2022, tax free bonds and non-convertible debentures of ![](rupee-symbol.gif)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 and non-convertible debentures of ![](rupee-symbol.gif)965 crore was transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

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

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

**2.11 EQUITY**

**Accounting policy**

**Ordinary Shares**

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

**Treasury Shares**

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

**Description of reserves**

**Capital Redemption Reserve**

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

**Retained earnings**

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

**Securities premium**

The amount received in excess of the par value has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account.

**Share options outstanding account**

The share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

**Special Economic Zone Re-investment reserve**

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

**Other components of equity**

Other components of equity include currency translation, remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in fair value of derivatives designated as cash flow hedges, net of taxes.

**Currency translation reserve**

The exchange differences arising from the translation of financial statements of foreign subsidiaries with functional currency other than Indian rupees is recognized in other comprehensive income and is presented within equity.

**Cash flow hedge reserve**

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Consolidated Statement of Profit and Loss upon the occurrence of the related forecasted transaction.

**EQUITY SHARE CAPITAL**

*(In ![](rupee-symbol.gif) crore, except as otherwise stated)*

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| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Authorized |  |  |
| Equity shares, ![](rupee-symbol.gif)5 par value |  |  |
| 480,00,00,000 (4800000000) equity shares | 2400 | 2400 |
| Issued, Subscribed and Paid-Up |  |  |
| Equity shares, ![](rupee-symbol.gif)5 par value*<sup>(1)</sup>* | 2086 | 2098 |
| 4,17,03,48,621 (4193012929) equity shares fully paid-up<sup>(2)</sup> |  |  |
|  | **2086** | **2098** |

---

Note: Forfeited shares amounted to ![](rupee-symbol.gif)1,500 (![](rupee-symbol.gif)1,500)

*<sup>(1)</sup>* *Refer to Note 2.20 for details of basic and diluted shares*

*<sup>(2)</sup>* *Net of treasury shares 12,568,222 (1,37,25,712)*

The Company has only one class of shares referred to as equity shares having a par value of ![](rupee-symbol.gif)5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. For irrevocable controlled trusts, the corpus would be settled in favor of the beneficiaries.

For details of shares reserved for issue under the employee stock option plan of the Company refer to the note below.

The reconciliation of the number of shares outstanding and the amount of share capital as at December 31, 2022 and March 31, 2022 are as follows:

*(In ![](rupee-symbol.gif) crore, except as stated otherwise)*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As at December 31, 2022** | **As at December 31, 2022** | **As at March 31, 2022** | **As at March 31, 2022** |
| **Particulars** | **Number of shares** | **Amount** | **Number of shares** | **Amount** |
| **As at the beginning of the period** | **4193012929** | **2098** | **4245146114** | **2124** |
| Add: Shares issued on exercise of employee stock options | 2499692 | 1 | 3674152 | 2 |
| Less: Shares bought back | 25164000 | 13 | 55807337 | 28 |
| **As at the end of the period** | **4170348621** | **2086** | **4193012929** | **2098** |

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**Capital allocation policy** 

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

**Update on buyback announced in October 2022:**

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 ![](rupee-symbol.gif)9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)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 declared on December 3, 2022. At the Maximum buyback price of ![](rupee-symbol.gif)1,850/- per equity share and the Maximum buyback size of ![](rupee-symbol.gif)9,300 crore the indicative maximum number of equity shares bought back would be 50,270,270 Equity Shares (Maximum buyback shares) comprising approximately 1.19% of the paid-up equity share capital of the Company as of September 30, 2022 and as on December 5, 2022, the date of the Public Announcement for the buyback (on a standalone basis).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The Company will fund the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.The buyback of equity shares through the stock exchange commenced on December 7, 2022 and is expected to be completed on or before June 6, 2023. During the quarter ended December 31, 2022, 25,164,000 equity shares were purchased from the stock exchange which includes 3,170,000 shares which have been purchased but have not been settled and therefore not extinguished as of December 31, 2022. In accordance with section 69 of the Companies Act, 2013, during the quarter ended December 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)11 crore equal to the nominal value of the shares bought back as an appropriation from general reserve/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 ![](rupee-symbol.gif)9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding ![](rupee-symbol.gif)1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing Annual General Meeting.

The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19, 2021.

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021. During this buyback period, the Company had purchased and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buy back price of ![](rupee-symbol.gif)1,648.53/- per equity share comprising 1.31% of the pre buyback paid-up equity share capital of the Company. The buyback resulted in a cash outflow of ![](rupee-symbol.gif)9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013.

In accordance with section 69 of the Companies Act, 2013, as at March 31, 2022, the Company has created 'Capital Redemption Reserve' of ![](rupee-symbol.gif)28 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of December 31, 2022, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements.

**Dividend**

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

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable 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:

*(in ![](rupee-symbol.gif))*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Final dividend for fiscal 2021 | *–* | *–* | *–* | 15.00 |
| Interim dividend for fiscal 2022 | *–* | 15.00 | *–* | 15.00 |
| Final dividend for fiscal 2022 | *–* | *–* | 16.00 | *–* |
| Interim dividend for fiscal 2023 | 16.50 | *–* | 16.50 | *–* |

---

The Board of Directors in their meeting held on April 13, 2022 recommended a final dividend of ![](rupee-symbol.gif)16/- per equity share for the financial year ended March 31, 2022. The same was approved by the shareholders in the Annual General Meeting (AGM) of the Company held on June 25, 2022 which resulted in a net cash outflow of ![](rupee-symbol.gif)6,711 crore (excluding dividend paid on treasury shares).

The Board of Directors in their meeting held on October 13, 2022 declared a interim dividend of ![](rupee-symbol.gif)16.50/- per equity share which resulted in a net cash outflow of ![](rupee-symbol.gif)6,921 crore, excluding dividend paid on treasury shares.

**Employee Stock Option Plan (ESOP):**

**Accounting policy**

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

**Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan) :**

On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 Plan shall not exceed 5,00,00,000 equity shares. To implement the 2019 Plan, up to 4,50,00,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 Plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the Company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date.

**2015 Stock Incentive Compensation Plan (the 2015 Plan) :**

On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 Plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). The Company expects to grant the instruments under the 2015 Plan over the period of 4 years. The plan numbers mentioned above would further be adjusted for the September 2018 bonus issue.

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

Controlled trust holds 1,25,68,222 and 1,37,25,712 shares as at December 31, 2022 and March 31, 2022, respectively, under the 2015 Plan. Out of these shares, 200,000 equity shares each have been earmarked for welfare activities of the employees as at December 31, 2022 and March 31, 2022.

The following is the summary of grants during the three months and nine months ended December 31, 2022 and December 31, 2021:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2019 Plan** | **2019 Plan** | **2019 Plan** | **2019 Plan** | **2015 Plan** | **2015 Plan** | **2015 Plan** | **2015 Plan** |
| | **Three months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Three months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** | **Nine months ended**<br> **December 31,** |
| **Particulars**<br>| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| **Equity Settled RSUs** |  |  |  |  |  |  |  |  |
| Key Managerial Personnel (KMPs) | *–* | *–* | 176893 | 73962 | *–* | *–* | 287325 | 101697 |
| Employees other than KMPs | 3814 | *–* | 374774 | *–* | 48050 | 25270 | 48050 | 25270 |
| **Total Grants** | **3814** |  ***–*** | **551667** | **73962** | **48050** | **25270** | **335375** | **126967** |

---

 ****

***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 a term 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 accordance with the terms of his employment agreement effective till June 30, 2022, approved the grant of performance-based RSUs of fair value of ![](rupee-symbol.gif)13 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment agreement based on achievement 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, the Board, on July 24, 2022, based on the recommendations of the Nomination and Remuneration Committee:

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the grant of performance-based RSUs (Annual performance equity grant) of fair value
of ![](rupee-symbol.gif) 21.75 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment
agreement based on achievement of certain performance targets. Accordingly, 140,228 performance based RSU's were granted effective
August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance equity ESG grant) of fair
value of ![](rupee-symbol.gif) 2 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment
agreement based on achievement of certain environment, social and governance milestones as determined by the Board. Accordingly, 12,894
performance based RSU's were granted effective August 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Approved the performance-based grant of RSUs (Annual performance Equity TSR grant) of fair
value of ![](rupee-symbol.gif) 5 crore for fiscal 2023 under the 2015 Plan. These RSUs will vest in line with the employment
agreement based on Company's performance on cumulative relative TSR over the years and as determined by the Board. Accordingly,
32,236 performance based RSU's were granted effective August 1, 2022.

**Under the 2019 Plan:**

The Board, on April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ![](rupee-symbol.gif)10 crore for fiscal 2023 under the 2019 Plan. These RSUs will vest in line with the employment agreement effective till June 30, 2022 based on achievement of certain performance targets. Accordingly, 64,893 performance based RSU's were granted effective May 2, 2022.

**Other KMPs**

**Under the 2015 Plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, in accordance with employment agreement, the Board, approved performance-based grant of 5,616 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. The performance based RSUs will vest over three years based on certain performance targets.

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved time based grant of 11,990 RSUs to a KMP under the 2015 Plan. The grants were made effective May 2, 2022. These RSUs will vest over four years.

**Under the 2019 Plan:**

On April 13, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance based grant of 8,000 RSUs to a KMP under the 2019 Plan. The grants were made effective May 2, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

On May 21, 2022, based on the recommendations of the Nomination and Remuneration Committee, the Board, approved performance based grant of 1,04,000 RSUs to other KMPs under the 2019 Plan. The grants were made effective June 1, 2022. These RSUs will vest over three years based on achievement of certain performance targets.

**Break-up of employee stock compensation expense:**

*(in ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| *Granted to:* |  |  |  |  |
| KMP<sup>#</sup> | *–* | 17 | 41 | 51 |
| Employees other than KMP | 117 | 77 | 345 | 251 |
| Total *<sup>(1)</sup>* | **117** | **94** | **386** | **302** |
| *<sup>(1)</sup> Cash-settled stock compensation expense included in the above* | 5 | 5 | 4 | 17 |

---

** 

*<sup>#</sup>* *Includes reversal of employee stock compensation expense on account of resignation*

 

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For options granted in** | **For options granted in** | **For options granted in** | **For options granted in** |
| **Particulars** | **Fiscal 2023- <br> Equity Shares-RSU** | **Fiscal 2023- <br> ADS-RSU** | **Fiscal 2022- <br> Equity Shares-RSU** | **Fiscal 2022- <br> ADS-RSU** |
| Weighted average share price (![](rupee-symbol.gif)) / ($ ADS) | 1525 | 19.01 | 1791 | 24.45 |
| Exercise price (![](rupee-symbol.gif)) / ($ ADS) | 5.00 | 0.07 | 5.00 | 0.07 |
| Expected volatility (%) | 23-32 | 28-34 | 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 |
| Weighted average fair value as on grant date (![](rupee-symbol.gif)) / ($ ADS) | 1283 | 14.40 | 1548 | 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.

**2.12 OTHER FINANCIAL LIABILITIES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation to employees <sup>(1)</sup> | 8 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses <sup>(1)</sup> | 1496 | 946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensated absences | 87 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liability under option arrangements <sup>(2)</sup> | *–* | 655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for acquisition of business - Contingent consideration <sup>(2)</sup> | *–* | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Payables <sup>(1)(5)</sup> | 310 | 580 |
| **Total non-current other financial liabilities** | **1901** | **2337** |
| **Current** |  |  |
| Unpaid dividends <sup>(1)</sup> | 35 | 36 |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation to employees <sup>(1)</sup> | 3536 | 4061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses <sup>(1)</sup> | 7841 | 7476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retention monies <sup>(1)</sup> | 14 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for acquisition of business - Contingent consideration <sup>(2)</sup> | 94 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable by controlled trusts <sup>(1)</sup> | 211 | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liability relating to buyback (Refer to Note 2.11) <sup>(1) (4)</sup> | 1616 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensated absences | 2400 | 2182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liability under option arrangements <sup>(2)</sup> | 671 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward and options contracts <sup>(2) (3)</sup> | 225 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital creditors <sup>(1)</sup> | 388 | 431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables <sup>(1)(5)</sup> | 2487 | 1299 |
| **Total current other financial liabilities** | **19518** | **15837** |
| **Total other financial liabilities** | **21419** | **18174** |
| <sup>(1)</sup> Financial liability carried at amortized cost | 17942 | 15061 |
| <sup>(2)</sup> Financial liability carried at fair value through profit or loss | 957 | 836 |
| <sup>(3)</sup> Financial liability carried at fair value through other comprehensive income | 33 | 3 |
| Contingent consideration on undiscounted basis | 100 | 132 |

---

 

<sup>(4)</sup> In accordance with Ind AS 32 Financial Instruments: Presentation, the Company has recorded a financial liability as at December 31, 2022 for the obligation to acquire its own equity shares to the extent of standing instructions provided to its registered broker for the buyback (Refer to Note 2.11) . The financial liability is recognized at the present value of the maximum amount that the Company would be required to pay to the registered broker for buy back, with a corresponding debit in general reserve / retained earnings.

<sup>(5)</sup> Deferred contract cost (Refer to Note 2.9) 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 transferred to 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 for these assets. As at December 31, 2022, the financial liability pertaining to such arrangements amounts to ![](rupee-symbol.gif)747 crore. During the nine months ended December 31, 2022, ![](rupee-symbol.gif)38 crore was settled directly by the third party to the customer on behalf of the Group and accordingly considered as non-cash transaction.

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

**2.13 OTHER LIABILITIES**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Non-current** |  |  |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income - government grants | 63 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued defined benefit liability | 474 | 367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income | 7 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 7 | 11 |
| **Total non-current other liabilities** | **551** | **451** |
| **Current** |  |  |
| Unearned revenue | 7117 | 6324 |
| Others |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes and others | 3393 | 2834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued defined benefit liability | 4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income - government grants | 11 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax on buyback (Refer to Note 2.11) | 643 | *–* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 3 | 4 |
| **Total current other liabilities** | **11171** | **9178** |
| **Total other liabilities** | **11722** | **9629** |

---

**2.14 PROVISIONS**

**Accounting policy**

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

**a. Post sales client support**

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

**b.Onerous contracts**

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract.

**Provision for post-sales client support and other provisions:**

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Current** |  |  |
| Others |  |  |
| Post-sales client support and other provisions | 1417 | 975 |
| **Total provisions** | **1417** | **975** |

---

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 1 year.

**2.15 INCOME TAXES**

**Accounting policy**

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

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

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Current taxes | 2195 | 2063 | 7027 | 5986 |
| Deferred taxes | 150 | 58 | (145) | 130 |
| **Income tax expense** | **2345** | **2121** | **6882** | **6116** |

---

Income tax expense for the three months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)76 crore and provisions (net of reversal) of ![](rupee-symbol.gif)7 crore, respectively. Income tax expense for the nine months ended December 31, 2022 and December 31, 2021 includes reversal (net of provisions) of ![](rupee-symbol.gif)36 crore and ![](rupee-symbol.gif)26 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions.

Deferred income tax for three months and nine months ended December 31, 2022 and December 31, 2021 substantially relates to origination and reversal of temporary differences.

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

**2.16 REVENUE FROM OPERATIONS**

**Accounting policy**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Group presents revenues net of indirect taxes in its Consolidated Statement of Profit and Loss.

Revenue from operation for the three months and nine months ended December 31, 2022 and December 31, 2021 are as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Revenue from software services | 35870 | 29766 | 102375 | 83425 |
| Revenue from products and platforms | 2448 | 2101 | 6951 | 5940 |
| **Total revenue from operations** | **38318** | **31867** | **109326** | **89365** |

---

**Disaggregated revenue information**

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

For the three months ended December 31, 2022 and December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services *<sup>(1)</sup>*** | **Retail*<sup>(2)</sup>*** | **Communication *<sup>(3)</sup>*** | **Energy , Utilities, Resources and Services** | **Manufacturing** | **Hi-Tech** | **Life Sciences*<sup>(4)</sup>*** | **Others <sup>(5)</sup>** | **Total** |
| **Revenues by Geography\*** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | 7219 | 3844 | 2887 | 2712 | 1940 | 2892 | 1975 | 287 | 23756 |
|  | *6310* | *3136* | *2301* | *1951* | *1646* | *2389* | *1725* | *237* | *19695* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | 1882 | 1341 | 976 | 1845 | 2994 | 68 | 684 | 105 | 9895 |
|  | *1724* | *1224* | *973* | *1477* | *1794* | *59* | *627* | *58* | *7936* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | 452 | 19 | 43 | 68 | 26 | 116 | 7 | 196 | 927 |
|  | *491* | *24* | *48* | *36* | *18* | *104* | *6* | *228* | *955* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | 1682 | 276 | 804 | 332 | 139 | 19 | 29 | 459 | 3740 |
|  | *1498* | *228* | *657* | *276* | *140* | *15* | *25* | *442* | *3281* |
| **Total** | **11235** | **5480** | **4710** | **4957** | **5099** | **3095** | **2695** | **1047** | **38318** |
|  |  ***10023*** |  ***4612*** |  ***3979*** |  ***3740*** |  ***3598*** |  ***2567*** |  ***2383*** |  ***965*** |  ***31867*** |
| **Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | 6223 | 3615 | 3150 | 3148 | 3773 | 1984 | 1679 | 531 | 24103 |
|  | *5264* | *2895* | *2437* | *2211* | *2440* | *1503* | *1457* | *444* | *18651* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | 5012 | 1865 | 1560 | 1809 | 1326 | 1111 | 1016 | 516 | 14215 |
|  | *4759* | *1717* | *1542* | *1529* | *1158* | *1064* | *926* | *521* | *13216* |
| **Total** | **11235** | **5480** | **4710** | **4957** | **5099** | **3095** | **2695** | **1047** | **38318** |
|  |  ***10023*** |  ***4612*** |  ***3979*** |  ***3740*** |  ***3598*** |  ***2567*** |  ***2383*** |  ***965*** |  ***31867*** |

---

For the nine months ended December 31, 2022 and December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services *<sup>(1)</sup>*** | **Retail*<sup>(2)</sup>*** | **Communication *<sup>(3)</sup>*** | **Energy , Utilities, Resources and Services** | **Manufacturing** | **Hi-Tech** | **Life Sciences*<sup>(4)</sup>*** | **Others <sup>(5)</sup>** | **Total** |
| **Revenues by Geography<sup>\*</sup>** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North America | 21139 | 10901 | 8324 | 7299 | 5668 | 8288 | 5446 | 816 | 67881 |
|  | *17979* | *8862* | *6080* | *5481* | *4654* | *6885* | *4598* | *694* | *55233* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | 5525 | 3874 | 2829 | 5216 | 7881 | 204 | 1834 | 224 | 27587 |
|  | 5050 | 3524 | 2666 | 4204 | 4554 | 165 | 1672 | 166 | *22001* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;India | 1416 | 55 | 127 | 163 | 62 | 334 | 20 | 703 | 2880 |
|  | *1362* | *73* | *264* | *103* | *51* | *296* | *21* | *375* | *2545* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | 4865 | 837 | 2395 | 1036 | 346 | 52 | 104 | 1343 | 10978 |
|  | *4414* | *659* | *2040* | *823* | *261* | *42* | *86* | *1261* | *9586* |
| **Total** | **32945** | **15667** | **13675** | **13714** | **13957** | **8878** | **7404** | **3086** | **109326** |
|  |  ***28805*** |  ***13118*** |  ***11050*** |  ***10611*** |  ***9520*** |  ***7388*** |  ***6377*** |  ***2496*** |  ***89365*** |
| **Revenue by offerings** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital | 18142 | 10217 | 9120 | 8536 | 10046 | 5595 | 4601 | 1471 | 67728 |
|  | *15060* | *7934* | *6588* | *6095* | *5732* | *4228* | *3657* | *1009* | *50303* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core | 14803 | 5450 | 4555 | 5178 | 3911 | 3283 | 2803 | 1615 | 41598 |
|  | *13745* | *5184* | *4462* | *4516* | *3788* | *3160* | *2720* | *1487* | *39062* |
| **Total** | **32945** | **15667** | **13675** | **13714** | **13957** | **8878** | **7404** | **3086** | **109326** |
|  |  ***28805*** |  ***13118*** |  ***11050*** |  ***10611*** |  ***9520*** |  ***7388*** |  ***6377*** |  ***2496*** |  ***89365*** |

---

** 

*<sup>(1)</sup>* *Financial Services include enterprises in Financial Services and Insurance*

*<sup>(2)</sup>* *Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics*

*<sup>(3)</sup>* *Communication includes enterprises in Communication, Telecom OEM and Media*

*<sup>(4)</sup>* *Life Sciences includes enterprises in Life sciences and Health care*

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

*<sup>\*</sup> Geographical revenue is based on the domicile of customer*

**Digital Services**

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

**Core Services**

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

**Products & platforms**

The Group derives revenues from the sale of products and platforms including Finacle – core banking solution, Edge Suite of products, Panaya platform, Infosys Equinox, Infosys Applied AI, Stater digital platform and Infosys McCamish – insurance platform.

**Trade Receivables and Contract Balances**

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

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

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

Invoicing in excess of earnings are classified as unearned revenue.

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

**2.17 OTHER INCOME, NET**

**Accounting policy**

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

**Foreign currency** 

**Accounting policy**

*Functional currency*

The functional currency of Infosys, Infosys BPM, EdgeVerve, Skava 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 and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate.

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

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

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

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

**Government grant**

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

Other income for the three months and nine months December 31, 2022 and December 31, 2021 is as follows:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Interest income on financial assets carried at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax free bonds and Government bonds | 38 | 38 | 113 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit with Bank and others | 174 | 165 | 551 | 661 |
| Interest income on financial assets carried at fair value through other comprehensive income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-convertible debentures, commercial paper, certificates of deposit and government securities | 241 | 140 | 724 | 453 |
| Income on investments carried at fair value through profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain / (loss) on liquid mutual funds and other investments | 46 | 35 | 87 | 100 |
| Income on investments carried at fair value through other comprehensive income | *–* | 1 | 1 | 1 |
| Exchange gains / (losses) on forward and options contracts | (363) | 118 | (789) | 174 |
| Exchange gains / (losses) on translation of other assets and liabilities | 552 | (59) | 1153 | (12) |
| Miscellaneous income, net | 81 | 74 | 190 | 167 |
| **Total other income** | **769** | **512** | **2030** | **1658** |

---

**2.18 EXPENSES**

**Accounting policy**

**Gratuity and Pensions**

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

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

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

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

**Provident fund**

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

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

**Superannuation**

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

**Compensated absences**

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

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| *Employee benefit expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries including bonus | 19467 | 15725 | 55712 | 45532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contribution to provident and other funds | 559 | 424 | 1596 | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share based payments to employees *(Refer to Note 2.11)* | 117 | 94 | 386 | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff welfare | 129 | 112 | 354 | 335 |
|  | **20272** | **16355** | **58048** | **47328** |
| *Cost of software packages and others* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For own use | 518 | 301 | 1442 | 1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third party items bought for service delivery to clients | 2567 | 1560 | 6575 | 3533 |
|  | **3085** | **1861** | **8017** | **4543** |
| *Other expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repairs and maintenance | 312 | 266 | 876 | 799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power and fuel | 47 | 36 | 130 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brand and marketing | 228 | 147 | 640 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term leases | 27 | 14 | 68 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rates and taxes | 75 | 53 | 221 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumables | 39 | 38 | 118 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance | 44 | 44 | 131 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for post-sales client support and others | 130 | 40 | 200 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission to non-whole time directors | 4 | 3 | 11 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss recognized / (reversed) under expected credit loss model | 106 | 54 | 197 | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions towards Corporate Social responsibility | 146 | 88 | 320 | 348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 149 | 86 | 334 | 222 |
|  | **1307** | **869** | **3246** | **2507** |

---

**2.19 Leases**

**Accounting Policy**

**The Group as a lessee** 

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

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

As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

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

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

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

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

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

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

**The Group as a lessor** 

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

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

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

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | <br>**Total** |
| **Balance as of October 1, 2022** | **622** | **3843** | **14** | **1146** | **5625** |
| Additions<sup>(1)</sup> | *–* | 133 | 2 | 1010 | 1145 |
| Deletions | *–* | (10) | *–* | (97) | (107) |
| Depreciation | (1) | (170) | (2) | (162) | (335) |
| Translation difference | 3 | 51 | 1 | 97 | 152 |
| **Balance as of December 31, 2022** | **624** | **3847** | **15** | **1994** | **6480** |

---

** 

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives.*

Following are the changes in the carrying value of right of use assets for the three months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | <br>**Total** |
| **Balance as of October 1, 2021** | **629** | **3738** | **16** | **216** | **4599** |
| Additions<sup>(1)</sup> | *–* | 238 | 2 | 189 | 429 |
| Deletions | *–* | (64) | *–* | (17) | (81) |
| Depreciation | (2) | (167) | (2) | (38) | (209) |
| Translation difference | 2 | (3) | (1) | (3) | (5) |
| **Balance as of December 31, 2021** | **629** | **3742** | **15** | **347** | **4733** |

---

** 

*<sup>(1)</sup>-* *Net of adjustments on account of modifications.*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of April 1, 2022** | **628** | **3711** | **16** | **468** | **4823** |
| Additions<sup>(1)</sup> | *–* | 619 | 6 | 2004 | 2629 |
| Deletions | *–* | (12) | *–* | (250) | (262) |
| Depreciation | (4) | (500) | (7) | (320) | (831) |
| Translation difference | *–* | 29 | *–* | 92 | 121 |
| **Balance as of December 31, 2022** | **624** | **3847** | **15** | **1994** | **6480** |

---

** 

*<sup>(1)</sup>* *Net of adjustments on account of modifications and lease incentives.*

Following are the changes in the carrying value of right of use assets for the nine months ended December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | **Category of ROU asset** | |
| **Particulars** | **Land** | **Buildings** | **Vehicles** | **Computers** | **Total** |
| **Balance as of April 1, 2021** | **630** | **3984** | **19** | **161** | **4794** |
| Additions<sup>(1)</sup> | *–* | 302 | 3 | 289 | 594 |
| Deletions | *–* | (70) | *–* | (35) | (105) |
| Depreciation | (5) | (487) | (7) | (67) | (566) |
| Translation difference | 4 | 13 | *–* | (1) | 16 |
| **Balance as of December 31, 2021** | **629** | **3742** | **15** | **347** | **4733** |

---

** 

*<sup>(1)</sup>* *Net of adjustments on account of modifications.*

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed Consolidated Statement of Profit and Loss.

The following is the break-up of current and non-current lease liabilities as at December 31, 2022 and March 31, 2022:

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| Current lease liabilities | 1143 | 872 |
| Non-current lease liabilities | 6577 | 4602 |
| **Total** | **7720** | **5474** |

---

**2.20 BASIC AND DILUTED SHARES USED IN COMPUTING EARNINGS PER EQUITY SHARE**

**Accounting policy**

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

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

**2.21 CONTINGENT LIABILITIES AND COMMITMENTS** 

**Accounting policy**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Particulars** | **December 31, 2022** | **March 31, 2022** |
| **Contingent liabilities :** |  |  |
| Claims against the Group, not acknowledged as debts*<sup>(1)</sup>* | 4742 | 4641 |
| [Amount paid to statutory authorities ![](rupee-symbol.gif)6,557 crore *(![](rupee-symbol.gif)6,006 crore)*] |  |  |
| **Commitments :** |  |  |
| Estimated amount of contracts remaining to be executed on capital contracts and not provided for (net of advances and deposits)*<sup>(2)</sup>* | 740 | 1245 |
| Other commitments\* | 94 | 28 |

---

 

*\** *Uncalled capital pertaining to investments*

 

*<sup>(1)</sup>* As at December 31, 2022 and March 31, 2022, claims against the Group not acknowledged as debts in respect of income tax matters amounted to ![](rupee-symbol.gif)4,051 crore and ![](rupee-symbol.gif)4,001 crore, respectively.

The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of multiple issues of disallowances such as disallowance of profits earned from STP Units and SEZ Units, disallowance of deductions in respect of employment of new employees under section 80JJAA, disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes. These matters are pending before various Appellate Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations.

Amount paid to statutory authorities against the tax claims amounted to ![](rupee-symbol.gif)6,546 crore and ![](rupee-symbol.gif)5,996 crore as at December 31, 2022 and March 31, 2022, respectively.

*<sup>(2)</sup>* Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments.

**Legal Proceedings**

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

**2.22 RELATED PARTY TRANSACTIONS**

Refer to the Company's Annual Report for the year ended March 31, 2022 for the full names and other details of the Company's subsidiaries and controlled trusts.

**Changes in Subsidiaries**

During the nine months ended December 31, 2022, the following are the changes in the subsidiaries:

- 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 effect from April 1, 2022.

On April 20, 2022, Infosys Germany GmbH (formerly Kristall 247. GmbH ("Kristall")) (a wholly owned subsidiary of 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 along with its subsidiary oddity code d.o.o., and oddity GmbH along with its two subsidiaries oddity (Shanghai) Co. Ltd., oddity Limited(Taipei).

- Panaya GmbH renamed as Infosys Financial Services GmbH.

- Infosys Arabia Limited, a majority owned and controlled subsidiary of Infosys Limited is under liquidation.

- Infosys Public Services Canada Inc., a wholly owned subsidiary of Infosys Public Services Inc. was incorporated on July 8, 2022.

On September 1, 2022, Infosys Consulting Pte. Ltd. (a Wholly-owned subsidiary of Infosys Limited) acquired 100% of voting interests in BASE life science A/S along with its seven subsidiaries BASE life science AG, BASE life science GmbH, BASE life science Ltd., BASE life science S.A.S., BASE life science S.r.l., Innovisor Inc. and BASE life science Inc.

- BASE life science SL., a wholly owned subsidiary of BASE life science A/S was incorporated on September 6, 2022

- Panaya Germany GmbH, a wholly owned subsidiary of Panaya Inc. was incorporated on December 15, 2022.

**Change in key management personnel**

The following are the changes in the key management personnel:

- Ravi Kumar S resigned effective October 11, 2022

**Transaction with key management personnel:**

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

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
| **Particulars** | **2022** | **2021** | **2022** | **2021** |
| Salaries and other short term employee benefits to whole-time directors and executive officers *<sup>(1)(2)</sup>* | 12 | 33 | 86 | 106 |
| Commission and other benefits to non-executive/independent directors | 5 | 3 | 12 | 8 |
| **Total** | **17** | **36** | **98** | **114** |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Total employee stock compensation expense for the three months ended December 31, 2022 and December 31, 2021 includes a charge of less than a crore and ![](rupee-symbol.gif) 17 crore, respectively, towards key managerial personnel. For the nine months ended December 31, 2022 and December 31, 2021 includes a charge of ![](rupee-symbol.gif) 41 crore and ![](rupee-symbol.gif) 51 crore, respectively, towards key managerial personnel. (Refer to Note 2.11) Stock compensation expense for the three months and nine months ended December 31, 2022 include reversal of expense on account of resignation.* 

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

**2.23 SEGMENT REPORTING**

Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

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

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public services and revenue generated from customers located in India, Japan and China and other enterprises in Public services. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and 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 is otherwise recognized.

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

**Business Segments**

Three months ended December 31, 2022 and December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services <sup>(1)</sup>** | **Retail <sup>(2)</sup>** | **Communication <sup>(3)</sup>** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi-Tech** | **Life Sciences <sup>(4)</sup>** | **All other segments <sup>(5)</sup>** | **Total** |
| Revenue from operations | 11235 | 5480 | 4710 | 4957 | 5099 | 3095 | 2695 | 1047 | 38318 |
|  | *10023* | *4612* | *3979* | *3740* | *3598* | *2567* | *2383* | *965* | *31867* |
| Identifiable operating expenses | 6549 | 2837 | 2858 | 2594 | 3206 | 1786 | 1580 | 746 | 22156 |
|  | *5659* | *2234* | *2356* | *2012* | *2341* | *1522* | *1406* | *661* | *18191* |
| Allocated expenses | 2008 | 997 | 810 | 906 | 858 | 496 | 431 | 289 | 6795 |
|  | *1630* | *748* | *660* | *653* | *624* | *409* | *337* | *232* | *5293* |
| **Segment profit** | **2678** | **1646** | **1042** | **1457** | **1035** | **813** | **684** | **12** | **9367** |
|  | *2734* | *1630* | *963* | *1075* | *633* | *636* | *640* | *72* | *8383* |
| Unallocable expenses |  |  |  |  |  |  |  |  | 1125 |
|  |  |  |  |  |  |  |  |  | *899* |
| Other income, net *(Refer to Note 2.17)* |  |  |  |  |  |  |  |  | 769 |
|  |  |  |  |  |  |  |  |  | *512* |
| Finance cost |  |  |  |  |  |  |  |  | 80 |
|  |  |  |  |  |  |  |  |  | *53* |
| **Profit before tax** |  |  |  |  |  |  |  |  | **8931** |
|  |  |  |  |  |  |  |  |  | *7943* |
| Income tax expense |  |  |  |  |  |  |  |  | 2345 |
|  |  |  |  |  |  |  |  |  | *2121* |
| **Net Profit** |  |  |  |  |  |  |  |  | **6586** |
|  |  |  |  |  |  |  |  |  | *5822* |
| Depreciation and amortization |  |  |  |  |  |  |  |  | 1125 |
|  |  |  |  |  |  |  |  |  | *899* |
| Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | *—* |

---

Nine months ended December 31, 2022 and December 31, 2021:

*(In ![](rupee-symbol.gif) crore)*

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Financial Services <sup>(1)</sup>** | **Retail <sup>(2)</sup>** | **Communication <sup>(3)</sup>** | **Energy, Utilities, Resources and Services** | **Manufacturing** | **Hi-Tech** | **Life Sciences <sup>(4)</sup>** | **All other segments <sup>(5)</sup>** | **Total** |
| Revenue from operations | *32945* | *15667* | *13675* | *13714* | *13957* | *8878* | *7404* | *3086* | 109326 |
|  | *28805* | *13118* | *11050* | *10611* | *9520* | *7388* | *6377* | *2496* | *89365* |
| Identifiable operating expenses | 18829 | 8023 | 8488 | 7309 | 9245 | 5225 | 4320 | 2100 | 63539 |
|  | *16317* | *6333* | *6648* | *5632* | *5766* | *4409* | *3619* | *1715* | *50439* |
| Allocated expenses | 5873 | 2883 | 2386 | 2552 | 2500 | 1444 | 1223 | 794 | 19655 |
|  | *4752* | *2170* | *1916* | *1866* | *1772* | *1156* | *959* | *690* | *15281* |
| **Segment operating income** | **8243** | **4761** | **2801** | **3853** | **2212** | **2209** | **1861** | **192** | **26132** |
|  | *7736* | *4615* | *2486* | *3113* | *1982* | *1823* | *1799* | *91* | *23645* |
| Unallocable expenses |  |  |  |  |  |  |  |  | 3104 |
|  |  |  |  |  |  |  |  |  | *2586* |
| Other income, net *(Refer to Note 2.17)* |  |  |  |  |  |  |  |  | 2030 |
|  |  |  |  |  |  |  |  |  | *1658* |
| Finance cost |  |  |  |  |  |  |  |  | 202 |
|  |  |  |  |  |  |  |  |  | 150 |
| **Profit before tax** |  |  |  |  |  |  |  |  | **24856** |
|  |  |  |  |  |  |  |  |  | *22567* |
| Income tax expense |  |  |  |  |  |  |  |  | 6882 |
|  |  |  |  |  |  |  |  |  | *6116* |
| **Net Profit** |  |  |  |  |  |  |  |  | **17974** |
|  |  |  |  |  |  |  |  |  | *16451* |
| Depreciation and amortization expense |  |  |  |  |  |  |  |  | 3104 |
|  |  |  |  |  |  |  |  |  | *2586* |
| Non-cash expenses other than depreciation and amortization |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | *—* |

---

** 

*<sup>(1)</sup>* *Financial Services include enterprises in Financial Services and Insurance*

*<sup>(2)</sup>* *Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics*

*<sup>(3)</sup>* *Communication includes enterprises in Communication, Telecom OEM and Media*

*<sup>(4)</sup>* *Life Sciences includes enterprises in Life sciences and Health care*

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

**Significant clients**

No client individually accounted for more than 10% of the revenues for the three months and nine months ended December 31, 2022 and December 31, 2021, respectively.

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

*(In ![](rupee-symbol.gif) crore)*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Particulars** | **Note No.** | **Three months ended December 31,** | **Three months ended December 31,** | **Nine months ended December 31,** | **Nine months ended December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
| Revenue from operations | 2.16 | 38318 | 31867 | 109326 | 89365 |
| Cost of Sales |  | 26561 | 21415 | 76342 | 59726 |
| **Gross profit** |  | **11757** | **10452** | **32984** | **29639** |
| Operating expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses |  | 1611 | 1325 | 4591 | 3809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administration expenses |  | 1904 | 1643 | 5365 | 4771 |
| **Total operating expenses** |  | **3515** | **2968** | **9956** | **8580** |
| **Operating profit** |  | **8242** | **7484** | **23028** | **21059** |
| Other income, net | 2.17 | 769 | 512 | 2030 | 1658 |
| Finance cost |  | 80 | 53 | 202 | 150 |
| **Profit before tax** |  | **8931** | **7943** | **24856** | **22567** |
| Tax expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current tax | 2.15 | 2195 | 2063 | 7027 | 5986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | 2.15 | 150 | 58 | (145) | 130 |
| **Profit for the period** |  | **6586** | **5822** | **17974** | **16451** |
| **Other comprehensive income** |  |  |  |  |  |
| *Items that will not be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Remeasurement of the net defined benefit liability/asset, net |  | 29 | (53) | (17) | (72) |
| Equity instruments through other comprehensive income, net |  | 1 |  | 8 | 41 |
|  |  | **30** | **(53)** | **(9)** | **(31)** |
| *Items that will be reclassified subsequently to profit or loss* |  |  |  |  |  |
| Fair value changes on derivatives designated as cash flow hedge, net |  | (57) | (7) | (43) | 4 |
| Exchange differences on translation of foreign operations, net |  | 676 | (33) | 715 | 91 |
| Fair value changes on investments, net |  | 48 | (77) | (298) | 16 |
|  |  | **667** | **(117)** | **374** | **111** |
| **Total other comprehensive income / (loss), net of tax** |  | **697** | **(170)** | **365** | **80** |
| **Total comprehensive income for the period** |  | **7283** | **5652** | **18339** | **16531** |
| **Profit attributable to:** |  |  |  |  |  |
| Owners of the Company |  | 6586 | 5809 | 17967 | 16425 |
| Non-controlling interests |  |  | 13 | 7 | 26 |
|  |  | **6586** | **5822** | **17974** | **16451** |
| **Total comprehensive income attributable to:** |  |  |  |  |  |
| Owners of the Company |  | 7268 | 5640 | 18322 | 16506 |
| Non-controlling interests |  | 15 | 12 | 17 | 25 |
|  |  | **7283** | **5652** | **18339** | **16531** |

---

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

---

| | | |
|:---|:---|:---|
| Nandan M. Nilekani<br> *Chairman* | Salil Parekh<br> *Chief Executive Officer*<br> *and Managing Director* | D. Sundaram<br> *Director* |
| Nilanjan Roy<br> *Chief Financial Officer* | Jayesh Sanghrajka<br> *Executive Vice President and*<br> *Deputy Chief Financial Officer* | A.G.S. Manikantha<br> *Company Secretary* |
| Bengaluru<br> January 12, 2023 |  |  |

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