Standalone financial statements

Independent Auditors’ Report

To The Members of Infosys Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Infosys Limited (‘the Company’), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under Section 143(11) of the Act.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1.

As required by Section 143(3) of the Act, based on our audit, we report that :

a.

we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b.

in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c.

the Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d.

in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.

e.

on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.

f.

with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ‘Annexure A’. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g.

with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us :

i.

The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.

ii.

The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii.

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

2.

As required by the Companies (Auditor’s Report) Order, 2016 (‘the Order’) issued by the Central Government in terms of Section 143(11) of the Act, we give in ‘Annexure B’ a statement on the matters specified in paragraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number : 117366W/W-100018



Bengaluru

April 13, 2018

Sd/-

P.R. Ramesh

Partner

Membership number : 70928

Annexure A to the Independent Auditors’ Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the members of Infosys Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of INFOSYS LIMITED (‘the Company’) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ‘Guidance Note’) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number : 117366W/W-100018



Bengaluru

April 13, 2018

Sd/-

P.R. Ramesh

Partner

Membership number : 70928

Annexure B to the Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the members of Infosys Limited of even date)

i.

In respect of the Company’s fixed assets :

a.

The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b.

The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c.

According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the Balance Sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the standalone financial statements, the lease agreements are in the name of the Company.

ii.

The Company is in the business of providing software services and does not have any physical inventories. Accordingly, reporting under Clause 3 (ii) of the Order is not applicable to the Company.

iii.

According to the information and explanations given to us, the Company has granted unsecured loans to three bodies corporate, covered in the register maintained under Section 189 of the Companies Act, 2013, in respect of which :

a.

The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s interest.

b.

The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.

c.

There is no overdue amount remaining outstanding as at the year-end.

iv.

In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

v.

The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.

vi.

The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under Clause 3(vi) of the order is not applicable to the Company.

vii.

According to the information and explanations given to us, in respect of statutory dues :

a.

The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b.

There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.

c.

Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below :

Nature of the statute

Nature of dues

Forum where dispute
is pending

Period to which the amount relates

Amount
in crore

The Income Tax Act, 1961

Income Tax

Appellate Tribunal

A.Y. 2010-11 to A.Y. 2013-14 and AY 2016-17

1,391

Income Tax

Appellate Authority upto Commissioner’s level

A.Y. 2008-09 to A.Y. 2018-19

2,192

Finance Act, 1994

Service Tax

Appellate Tribunal

F.Y 2004-05 to F.Y 2014-15

60

Central Excise
Act, 1944

Excise Duty

Appellate Tribunal

F.Y 2005-06 to F.Y 2015-16

68

Sales Tax Act and VAT Laws

Sales Tax and Interest

High Court

F.Y. 2007-08

(1)

Appellate Authority upto Commissioner’s level

F.Y. 2006-07 to F.Y. 2010-11, F.Y 2012-13 and F.Y 2014-15 to F.Y 2016-17

22

Specified Officer of SEZ

F.Y 2008-09 to F.Y 2011-12

5

(1) Less than 1 crore

viii.

The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under Clause 3 (viii) of the Order is not applicable to the Company.

ix.

The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under Clause 3 (ix) of the Order is not applicable to the Company.

x.

To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

xi.

In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii.

The Company is not a nidhi company and hence, reporting under Clause 3 (xii) of the Order is not applicable to the Company.

xiii.

In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

xiv.

During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence, reporting under Clause 3 (xiv) of the Order is not applicable to the Company.

xv.

In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi.

The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.

For Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number : 117366W/W-100018



Bengaluru

April 13, 2018

Sd/-

P.R. Ramesh

Partner

Membership number : 70928

Balance Sheet

in crore

Particulars

Note no.

As at March 31,

2018

2017

ASSETS

Non-current assets

Property, plant and equipment

2.1

9,027

8,605

Capital work-in-progress

1,442

1,247

Goodwill

2.2.1

29

Other intangible assets

2.2.2

101

Financial assets

Investments

2.3

11,993

15,334

Loans

2.4

19

5

Other financial assets

2.5

177

216

Deferred tax assets (net)

2.15

1,128

346

Income tax assets (net)

2.15

5,710

5,454

Other non-current assets

2.8

2,161

996

Total non-current assets

31,787

32,203

Current assets

Financial assets

Investments

2.3

5,906

9,643

Trade receivables

2.6

12,151

10,960

Cash and cash equivalents

2.7

16,770

19,153

Loans

2.4

393

310

Other financial assets

2.5

5,906

5,403

Other current assets

2.8

1,439

2,213

42,565

47,682

Assets held for sale

2.26

1,525

Total current assets

44,090

47,682

Total assets

75,877

79,885

EQUITY AND LIABILITIES

Equity

Equity share capital

2.10

1,092

1,148

Other equity

62,410

66,869

Total equity

63,502

68,017

Liabilities

Non-current liabilities

Financial liabilities

Other financial liabilities

2.11

55

40

Deferred tax liabilities (net)

2.15

505

Other non-current liabilities

2.13

153

42

Total non-current liabilities

713

82

Current liabilities

Financial liabilities

Trade payables

2.12

738

269

Other financial liabilities

2.11

5,540

5,056

Other current liabilities

2.13

2,972

2,349

Provisions

2.14

436

350

Income tax liabilities (net)

2.15

1,976

3,762

Total current liabilities

11,662

11,786

Total equity and liabilities

75,877

79,885

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

As per our report of even date attached

for Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number :
117366W/W-100018

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

P.R. Ramesh

Partner

Membership number : 70928

Nandan M. Nilekani

Chairman

Salil Parekh

Chief Executive Officer and Managing Director

U.B. Pravin Rao

Chief Operating Officer and Whole-time Director

Bengaluru

April 13, 2018

D. Sundaram

Director

M.D. Ranganath

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Statement of Profit and Loss

in crore, except equity share and per equity share data

Particulars

Note no.

Year ended March 31,

2018

2017

Revenue from operations

2.16

61,941

59,289

Other income, net

2.17

4,019

3,062

Total income

65,960

62,351

Expenses

Employee benefit expenses

2.18

32,472

30,944

Cost of technical sub-contractors

5,494

4,809

Travel expenses

1,479

1,638

Cost of software packages and others

2.18

1,270

1,235

Communication expenses

330

372

Consultancy and professional charges

826

538

Depreciation and amortization expense

2.1 & 2.2.2

1,408

1,331

Other expenses

2.18

2,184

2,546

Impairment loss on assets held for sale

2.26

589

Total expenses

46,052

43,413

Profit before tax

19,908

18,938

Tax expense

Current tax

2.15

4,003

5,068

Deferred tax

2.15

(250)

52

Profit for the Year

16,155

13,818

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Remeasurement of the net defined benefit liability / asset, net

2.20 & 2.15

52

(42)

Equity instruments through other comprehensive income, net

2.3 & 2.15

7

(5)

Items that will be reclassified subsequently to profit or loss

Fair value changes on derivatives designated as cash flow hedge, net

2.9 & 2.15

(39)

39

Fair value changes on investments, net

2.3 & 2.15

1

(10)

Total other comprehensive income / (loss), net of tax

21

(18)

Total comprehensive income for the Year

16,176

13,800

Earnings per equity share

Equity shares of par value 5 each

Basic ()

71.28

60.16

Diluted ()

71.25

60.15

Weighted average equity shares used in computing earnings
per equity share

Basic

2.21

226,63,43,802

229,69,44,664

Diluted

2.21

226,73,92,621

229,71,59,670

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

As per our report of even date attached

for Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number :
117366W/W-100018

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

P.R. Ramesh

Partner

Membership number : 70928

Nandan M. Nilekani

Chairman

Salil Parekh

Chief Executive Officer and Managing Director

U.B. Pravin Rao

Chief Operating Officer and Whole-time Director

Bengaluru

April 13, 2018

D. Sundaram

Director

M.D. Ranganath

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Statement of Changes in Equity

in crore

Particulars

Equity share capital

Other equity

Total equity attributable to equity holders of the Company

Reserves and surplus

Other comprehensive income

Securities premium reserve

Retained earnings

General reserve

Share options outstanding account

Special Economic Zone Re-investment Reserve(1)

Capital reserve

Capital redemption reserve

Equity instruments through other comprehensive income

Effective portion of cash flow hedges

Other items of other comprehensive income

Capital reserve

Business transfer adjustment reserve(2)

Balance as at April 1, 2016

1,148

2,204

44,698

9,508

9

54

3,448

13

61,082

Changes in equity for the year ended March 31, 2017

Transfer to general reserve

(1,579)

1,579

Transferred to Special Economic Zone Re-investment Reserve

(953)

953

Transferred from Special Economic Zone Re-investment Reserve on utilization

953

(953)

Exercise of stock options
(Refer to Note 2.10)

3

(3)

Income tax benefit arising on exercise of stock options

1

1

Share-based payment to employees of the group
(Refer to Note 2.10)

114

114

Remeasurement of the net defined benefit liability/asset(3)

(42)

(42)

Fair value changes on derivatives designated as cash flow hedge(3) (Refer to Note 2.9)

39

39

Fair value changes on investments, net(3)
(Refer to Note 2.3)

(10)

(10)

Equity instruments through other comprehensive income(3) (Refer to Note 2.3)

(5)

(5)

Dividends (including dividend distribution tax)

(6,980)

(6,980)

Profit for the year

13,818

13,818

Balance as at March 31, 2017

1,148

2,208

49,957

11,087

120

54

3,448

(5)

39

(39)

68,017

Balance as at April 1, 2017

1,148

2,208

49,957

11,087

120

54

3,448

(5)

39

(39)

68,017

Changes in equity for the year ended March 31, 2018

Transfer to general reserve

(1,382)

1,382

Transferred to Special Economic Zone Re-investment Reserve

(2,141)

2,141

Transferred from Special Economic Zone Re-investment Reserve on utilization

582

(582)

Exercise of stock options
(Refer to Note 2.10)

67

2

(69)

Shares issued on exercise of employee stock options

5

5

Share-based payment to employees of the group
(Refer to Note 2.10)

79

79

Amount paid upon buyback (Refer to Note 2.10)

(56)

(2,206)

(10,738)

(13,000)

Transaction costs related to buyback (Refer to Note 2.10)(3)

(46)

(46)

Amount transferred to capital redemption reserve upon buyback (Refer to Note 2.10)

(56)

56

Loss recorded upon business transfer (Refer to Note 2.3)

(229)

(229)

Remeasurement of the net defined benefit liability/asset(3)

52

52

Equity instruments through other comprehensive income(3) (Refer to Note 2.3)

7

7

Fair value changes on derivatives designated as cash flow hedge(3)
(Refer to Note 2.9)

(39)

(39)

Fair value changes on investments, net(3)
(Refer to Note 2.3)

1

1

Dividends (including dividend distribution tax)

(7,500)

(7,500)

Profit for the year

16,155

16,155

Balance as at March 31, 2018

1,092

28

55,671

1,677

130

1,559

54

3,219

56

2

14

63,502

(1) The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Section 10AA(1)(ii) of the 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 Section 10AA(2) of the Income tax Act, 1961.

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

(3) Net of tax

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

As per our report of even date attached

for Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number :
117366W/W-100018

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

P.R. Ramesh

Partner

Membership number : 70928

Nandan M. Nilekani

Chairman

Salil Parekh

Chief Executive Officer and Managing Director

U.B. Pravin Rao

Chief Operating Officer and Whole-time Director

Bengaluru

April 13, 2018

D. Sundaram

Director

M.D. Ranganath

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Statement of Cash Flows

Accounting policy

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated 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.

Amendment to Ind AS 7

Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement. The adoption of the amendment did not have any material impact on the financial statements.

in crore

Particulars

Note no.

Year ended March 31,

2018

2017

Cash flow from operating activities

Profit for the year

16,155

13,818

Adjustments to reconcile net profit to net cash provided by operating activities

Depreciation and amortization

2.1 & 2.2.2

1,408

1,331

Income tax expense

2.15

3,753

5,120

Allowance for credit losses on financial assets

18

135

Interest and dividend income

(3,169)

(2,553)

Other adjustments

40

48

Impairment loss on assets held for sale

2.26

589

Exchange differences on translation of assets and liabilities

3

39

Changes in assets and liabilities

Trade receivables and unbilled revenues

(1,579)

(1,825)

Loans and other financial assets and other assets

(207)

(427)

Trade payables

466

(354)

Other financial liabilities, other liabilities and provisions

1,052

179

Cash generated from operations

18,529

15,511

Income taxes paid

(6,054)

(5,033)

NET CASH GENERATED BY OPERATING ACTIVITIES

12,475

10,478

Cash flows from investing activities

Expenditure on property, plant and equipment

(1,842)

(2,292)

Deposits placed with corporations

(106)

(155)

Loans to employees

19

23

Loan given to subsidiaries

(106)

Repayment of debentures

349

420

Investment in subsidiaries

(212)

(369)

Proceeds on liquidation of Noah

2.3

316

Payment towards acquisition of business

2.3

(295)

Payment towards contingent consideration pertaining to acquisition

(33)

(36)

Payments to acquire investments

2.3

Preference and equity securities

(13)

(43)

Liquid mutual fund units and fixed maturity plan securities

(57,250)

(49,648)

Tax-free bonds

(1)

(312)

Non-convertible debentures

(3,664)

Certificates of deposit

(6,290)

(7,555)

Commercial paper

(291)

Proceeds on sale of investments

2.3

Preference and equity securities

10

Liquid mutual fund units and fixed maturity plan securities

59,364

47,495

Tax-free bonds

2

Non-convertible debentures

100

Certificates of deposit

9,411

Dividend received from subsidiaries

846

Interest and dividend received

1,708

2,640

NET CASH FROM / (USED IN) INVESTING ACTIVITIES

5,684

(13,494)

Cash flow from financing activities

Shares issued on exercise of employee stock options

5

Buyback including transaction cost

2.10

(13,046)

Payment of dividends (including dividend distribution tax)

(7,495)

(6,968)

NET CASH USED IN FINANCING ACTIVITIES

(20,536)

(6,968)

Effect of exchange differences on translation of foreign currency cash and
cash equivalents

(6)

(39)

Net decrease in cash and cash equivalents

(2,377)

(9,984)

Cash and cash equivalents at the beginning of the year

2.7

19,153

29,176

Cash and cash equivalents at the end of the year

2.7

16,770

19,153

Supplementary information

Restricted cash balance

2.7

375

411

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

As per our report of even date attached

for Deloitte Haskins & Sells LLP

Chartered Accountants

Firm’s registration number :
117366W/W-100018

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

P.R. Ramesh

Partner

Membership number : 70928

Nandan M. Nilekani

Chairman

Salil Parekh

Chief Executive Officer and Managing Director

U.B. Pravin Rao

Chief Operating Officer and Whole-time Director

Bengaluru

April 13, 2018

D. Sundaram

Director

M.D. Ranganath

Chief Financial Officer

A.G.S. Manikantha

Company Secretary

Overview and notes to the financial statements

1. Overview

1.1 Company overview

Infosys Limited (‘the Company’ or Infosys) is a leading provider of consulting, technology, outsourcing, next-generation services and software. Along with its subsidiaries, Infosys provides business IT services (comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life-cycle solutions and business process management); consulting and systems integration services (comprising consulting, enterprise solutions, systems integration and advanced technologies); products, business platforms and solutions to accelerate intellectual property-led innovation. Its new offerings span areas like digital, big data and analytics, cloud, data and mainframe modernization, cyber security, IoT engineering services and API and micro services.

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

The Company has proposed to voluntarily delist its ADSs from the Euronext Paris and Euronext London exchanges due to low average daily trading volume of Infosys ADSs on these exchanges. The proposed delisting is subject to approval from the said stock exchanges.

The financial statements are approved for issue by the Company’s Board of Directors on April 13, 2018.

1.2 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act , 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment rules issued thereafter.

Effective April 1, 2016, the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards, with April 1, 2015 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

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.

Amounts for the year ended March 31, 2017 and as at March 31, 2017 were audited by previous auditors – B S R & Co LLP.

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

1.3 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. 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 1.4. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates 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 financial statements.

1.4 Critical accounting estimates

a. Revenue recognition

The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-of-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

b. Income taxes

The Company’s two major tax jurisdictions are India and the US, 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. Also, refer to Notes 2.15 and 2.22.

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.

d. Non-current assets held for sale

Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell. The determination of fair value less costs to sell includes use of management estimates and assumptions. The fair value of the asset held for sale has been estimated using valuation techniques (mainly income and market approach), which include unobservable inputs.

1.5 Recent accounting pronouncements

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration : On March 28, 2018, the Ministry of Corporate Affairs (‘the MCA’) notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115, Revenue from Contract with Customers : On March 28, 2018, the MCA notified the Ind AS 115. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The standard permits two possible methods of transition :

  • Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
  • Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The effective date for adoption of Ind AS 115 is financial period beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly, comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

2.1 Property, plant and equipment

Accounting policy

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

Building(1)

22-25 years

Plant and machinery(1)

5 years

Office equipment

5 years

Computer equipment(1)

3-5 years

Furniture and fixtures(1)

5 years

Vehicles(1)

5 years

Leasehold improvements

Over lease term

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

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

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment are 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 year ended March 31, 2018 are as follows :

in crore

Particulars

Land – Freehold

Land – Leasehold

Buildings(1)(2)

Plant and machinery(2)(3)

Office equipment(2)

Computer equipment(2)

Furniture and fixtures(2)

Leasehold improvements

Vehicles

Total

Gross carrying value as at April 1, 2017

1,093

659

6,483

1,966

769

3,886

1,132

198

24

16,210

Additions

134

2

789

250

78

396

121

48

5

1,823

Deletions

(1)

(7)

(6)

(53)

(6)

(11)

(84)

Gross carrying value as at March 31, 2018

1,227

661

7,271

2,209

841

4,229

1,247

235

29

17,949

Accumulated depreciation as at April 1, 2017

(26)

(2,377)

(1,274)

(472)

(2,603)

(757)

(82)

(14)

(7,605)

Depreciation

(4)

(244)

(258)

(115)

(592)

(145)

(36)

(3)

(1,397)

Accumulated depreciation on deletions

6

5

52

6

11

80

Accumulated depreciation as at March 31, 2018

(30)

(2,621)

(1,526)

(582)

(3,143)

(896)

(107)

(17)

(8,922)

Carrying value as at April 1, 2017

1,093

633

4,106

692

297

1,283

375

116

10

8,605

Carrying value as at March 31, 2018

1,227

631

4,650

683

259

1,086

351

128

12

9,027

The changes in the carrying value of property, plant and equipment for the year ended March 31, 2017 were as follows :

in crore

Particulars

Land – Freehold

Land – Leasehold

Buildings(1)(2)

Plant and machinery(2)(3)

Office equipment(2)

Computer equipment(2)

Furniture and fixtures(2)

Leasehold improvements

Vehicles

Total

Gross carrying value as at April 1, 2016

970

638

6,173

1,662

679

3,481

991

96

19

14,709

Additions

123

21

310

308

122

654

169

104

6

1,817

Deletions

(4)

(32)

(249)

(28)

(2)

(1)

(316)

Gross carrying value as at March 31, 2017

1,093

659

6,483

1,966

769

3,886

1,132

198

24

16,210

Accumulated depreciation as at April 1, 2016

(21)

(2,150)

(1,033)

(369)

(2,195)

(619)

(63)

(11)

(6,461)

Depreciation

(5)

(227)

(245)

(111)

(572)

(146)

(21)

(4)

(1,331)

Accumulated depreciation on deletions

4

8

164

8

2

1

187

Accumulated depreciation as at March 31, 2017

(26)

(2,377)

(1,274)

(472)

(2,603)

(757)

(82)

(14)

(7,605)

Carrying value as at April 1, 2016

970

617

4,023

629

310

1,286

372

33

8

8,248

Carrying value as at March 31, 2017

1,093

633

4,106

692

297

1,283

375

116

10

8,605

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

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

(3) Includes 168 crore and 25 crore spent on CSR activities for the years ended March 31, 2018 and March 31, 2017, respectively.

Gross carrying value of leasehold land represents amounts paid under certain lease-cum-sale agreements to acquire land including agreements where the Company has an option to purchase or renew the properties on expiry of the lease period.

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

Tangible assets provided on operating lease to subsidiaries as at March 31, 2018 and March 31, 2017 are as follows :

in crore

Particulars

Cost

Accumulated depreciation

Net book value

Buildings

190

82

108

197

82

115

Plant and machinery

33

25

8

33

19

14

Furniture and fixtures

25

20

5

25

16

9

Computer equipment

3

2

1

3

2

1

Office equipment

18

13

5

18

10

8

in crore

Particulars

Year ended March 31,

2018

2017

Aggregate depreciation charged on above assets

20

19

Rental income from subsidiaries

67

65

2.2 Goodwill and other intangible assets

2.2.1 Goodwill

A summary of changes in the carrying amount of goodwill is as follows :

in crore

Particulars

As at March 31,

2018

2017

Carrying value at the beginning

Goodwill on business transfer of Noah (Refer to Note 2.3.1)

29

Carrying value at the end

29

The goodwill which was transferred as part of the business transfer has been allocated to the Company’s CGU which is represented by the Energy & Utilities, Communication and Services segment.

2.2.2 Other intangible assets

Accounting policy

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

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

The changes in the carrying value of acquired intangible assets for the year ended March 31, 2018 are as follows :

in crore

Particulars

Customer- related

Sub-contracting rights-related

Trade name- related

Others

Total

Gross carrying value as at April 1, 2017

21

9

30

Transfer of assets (Refer to Note 2.3.1)

113

26

26

165

Deletions / retirals during the period

(21)

(9)

(30)

Gross carrying value as at March 31, 2018

113

26

26

165

Accumulated amortization as at April 1, 2017

(21)

(9)

(30)

Transfer of assets (Refer to Note 2.3.1)

(33)

(10)

(10)

(53)

Amortization expense

(7)

(2)

(2)

(11)

Accumulated amortization on deletions

21

9

30

Accumulated amortization as at March 31, 2018

(40)

(12)

(12)

(64)

Carrying value as at April 1, 2017

Carrying value as at March 31, 2018

73

14

14

101

Estimated useful life (in years)

2-10

5

5

Estimated remaining useful life (in years)

5

3

3

The changes in the carrying value of acquired intangible assets for the year ended March 31, 2017 were as follows :

in crore

Particulars

Sub-contracting rights related

Others

Total

Gross carrying value as at April 1, 2016

21

9

30

Additions

Deletions

Gross carrying value as at March 31, 2017

21

9

30

Accumulated depreciation as at April 1, 2016

(21)

(9)

(30)

Depreciation

Accumulated depreciation on deletions

Accumulated depreciation as at March 31, 2017

(21)

(9)

(30)

Carrying value as at April 1, 2016

Carrying value as at March 31, 2017

Estimated useful life (in years)

Estimated remaining useful life (in years)

Research and development expense recognized in the Statement of Profit and Loss for the years ended March 31, 2018 and March 31, 2017 is 374 crore and 351 crore, respectively.

2.3 Investments

in crore

Particulars

As at March 31,

2018

2017

Non-current investments

Equity instruments of subsidiaries

5,013

7,305

Debentures of subsidiary

1,780

2,129

Preference securities and equity instruments

117

132

Others

7

3

Tax-free bonds

1,831

1,833

Fixed maturity plans securities

376

357

Non-convertible debentures

2,869

3,575

Total non-current investments

11,993

15,334

Current investments

Liquid mutual fund units

1,755

Fixed maturity plans securities

151

Certificates of deposit

4,901

7,635

Government bonds

1

Non-convertible debentures

711

102

Commercial paper

293

Total current investments

5,906

9,643

Total carrying value

17,899

24,977

in crore, except as otherwise stated

Particulars

As at March 31,

2018

2017

Non-current investments

UNQUOTED

Investment carried at cost

Investments in equity instruments of subsidiaries

Infosys BPM Limited (formerly Infosys BPO Limited)

659

659

3,38,22,319 (3,38,22,319) equity shares of 10 each, fully paid

Infosys Technologies (China) Co. Limited

333

236

Infosys Technologies (Australia) Pty Limited(1)

38

66

1,01,08,869 (1,01,08,869) equity shares of AUD 0.11 par value, fully paid

Infosys Technologies, S. de R.L. de C.V., Mexico

65

65

17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up

Infosys Technologies (Sweden) AB

76

76

1,000 (1,000) equity shares of SEK 100 par value, fully paid

Infosys Technologia do Brasil Ltda

149

149

5,91,24,348 (5,91,24,348) shares of BRL 1.00 par value, fully paid

Infosys Technologies (Shanghai) Company Limited

900

826

Infosys Public Services, Inc.

99

99

3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid

Infosys Consulting Holding AG (formerly Lodestone Holding AG)

1,323

1,323

23,350 (23,350) - Class A shares of CHF 1,000 each and 29,400 (29,400) - Class B Shares of CHF 100 each, fully paid up

Infosys Americas Inc.

1

1

10,000 (10,000) shares of USD 10 per share, fully paid up

EdgeVerve Systems Limited

1,312

1,312

1,31,18,40,000 (1,31,18,40,000) equity shares of 10 each, fully paid

Infosys Nova Holdings LLC(1)(2)

94

Noah Consulting LLC (Refer to Note 2.3.1)

313

Infosys Consulting Pte Ltd (formerly Lodestone Management Consultants)

10

10

Pte Ltd) 1,09,90,000 (1,09,90,000) shares of SGD 1.00 par value, fully paid

Brilliant Basics Holdings Limited (Refer to Note 2.3.2)

46

1,170 (Nil) shares of GBP 0.005 each, fully paid up

Infosys Arabia Limited

2

70 (Nil) shares

Kallidus Inc.

619

10,21,35,416 (10,21,35,416) shares (Refer to Note 2.26)

Skava Systems Private Limited

59

25,000 (25,000) shares of 10 per share, fully paid up (Refer to Note 2.26)

Panaya Inc.

1,398

2 (2) shares of USD 0.01 per share, fully paid up (Refer to Note 2.26)(3)

5,013

7,305

Investment carried at amortized cost

Investment in debentures of subsidiary

EdgeVerve Systems Limited

1,780

2,129

17,80,00,000 (21,29,00,000) Unsecured redeemable, non-convertible debentures of 100 each fully paid up

1,780

2,129

Investments carried at fair value through profit or loss

Others (Refer to Note 2.3.3)

7

3

7

3

Investment carried at fair value through other comprehensive income (FVOCI)

Preference securities (Refer to Note 2.3.3)

116

131

Equity instruments (Refer to Note 2.3.3)

1

1

117

132

QUOTED

Investments carried at amortized cost

Tax-free bonds (Refer to Note 2.3.4)

1,831

1,833

1,831

1,833

Investments carried at fair value through profit or loss

Fixed maturity plans securities (Refer to Note 2.3.5)

376

357

376

357

Investments carried at fair value through other comprehensive income

Non-convertible debentures (Refer to Note 2.3.6)

2,869

3,575

2,869

3,575

Total non-current investments

11,993

15,334

Current investments

Unquoted

Investments carried at fair value through profit or loss

Liquid mutual fund units (Refer to Note 2.3.5)

1,755

1,755

Investments carried at fair value through other comprehensive income

Commercial paper (Refer to Note 2.3.6)

293

Certificates of deposit (Refer to Note 2.3.6)

4,901

7,635

5,194

7,635

Quoted

Investments carried at amortized cost

Government bonds (Refer to Note 2.3.4)

1

1

Investments carried at fair value through profit or loss

Fixed maturity plans securities (Refer to Note 2.3.5)

151

151

Investments carried at fair value through other comprehensive income

Non-convertible debentures (Refer to Note 2.3.6)

711

102

711

102

Total current investments

5,906

9,643

Total investments

17,899

24,977

Aggregate amount of quoted investments

5,788

6,018

Market value of quoted investments (including interest accrued)

6,045

6,327

Aggregate amount of unquoted investments

12,111

18,959

(1) Aggregate amount of impairment in value of investments

122

Aggregate amount of impairment in value of investments held for sale (Refer to Note 2.26)

589

Investments carried at cost

5,013

7,305

Investments carried at amortized cost

3,612

3,962

Investments carried at fair value through other comprehensive income

8,891

11,444

Investments carried at fair value through profit or loss

383

2,266

(2) During the three months ended June 30, 2017, Infosys Nova Holdings LLC, a wholly-owned subsidiary, has written down the entire carrying value of its investment in its associate DWA Nova LLC. Consequently, the Company has written down the entire carrying value of the investment in Infosys Nova Holdings LLC, amounting to 94 crore.

(3) During the year ended March 31, 2018, there was an additional capital infusion of 38 crore in Panaya Inc.

Refer to Note 2.9 for accounting policies on financial instruments.

The details of amounts recorded in other comprehensive income are as follows :

in crore

Particulars

Year ended March 31, 2018

Year ended March 31, 2017

Gross

Tax

Net

Gross

Tax

Net

Net gain / (loss) on

Non-convertible debentures

(11)

2

(9)

(7)

(7)

Certificates of deposit

15

(5)

10

(5)

2

(3)

Equity and preference securities

4

3

7

(2)

(3)

(5)

Method of fair valuation

in crore

Class of investment

Method

Fair value as at March 31,

2018

2017

Liquid mutual funds

Quoted price

1,755

Fixed maturity plan securities

Market observable inputs

376

508

Tax-free bonds and government bonds

Quoted price and market observable inputs

2,079

2,142

Non-convertible debentures

Quoted price and market observable inputs

3,580

3,677

Commercial paper

Market observable inputs

293

Certificates of deposit

Market observable inputs

4,901

7,635

Unquoted equity and preference securities

Discounted cash flows method, market multiples method, option pricing model

117

132

Others

Discounted cash flows method, market multiples method, option pricing model

7

3

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

2.3.1 Business transfer – Noah Consulting LLC

On July 14, 2017, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with Noah Consulting LLC, a wholly-owned subsidiary, to transfer the business of Noah Consulting LLC to Infosys Limited, subject to securing the requisite regulatory approvals for a consideration based on an independent valuation. Subsequently on October 17, 2017, the Company entered into a business transfer agreement to transfer the business for a consideration of US$ 41 million ( 266 crore) and the transfer was with effect from October 25, 2017.

The transaction was between a holding company and a wholly-owned subsidiary, the resultant impact on account of business transfer was recorded in ‘Business Transfer Adjustment Reserve’ during the year ended March 31, 2018. The details of assets and liabilities taken over upon business transfer are as follows :

in crore

Particulars

Amount

Goodwill

29

Trade name

16

Customer contracts

80

Other intangibles

16

Deferred tax assets

13

Net assets / (liabilities), others

(117)

Total

37

Less : Consideration paid

266

Business transfer reserve

(229)

Subsequently, in November 2017, Noah Consulting LLC has been liquidated and the Company received 316 crore as proceeds on liquidation.

2.3.2 Brilliant Basics Holdings Limited

On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited, UK, (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for a cash consideration of 29 crore, a contingent consideration of up to 20 crore and an additional consideration of up to 13 crore, referred to as retention bonus, payable to the employees of Brilliant Basics at each anniversary year over the next two years, subject to their continuous employment with the group at each anniversary. The fair value of contingent consideration on the date of acquisition is 17 crore.

Proposed investment

On April 13, 2018, the Company entered into a definitive agreement to acquire WongDoody Holding Company Inc., a US-based creative and consumer insights agency for a total consideration of up to US$ 75 million (approximately 489 crore) including contingent consideration and retention payouts, subject to regulatory approvals and fulfillment of closing conditions.

2.3.3 Details of investments in preference securities, equity instruments and others

The details of non-current other investments in preference securities, equity instruments and others as at March 31, 2018 and March 31, 2017 are as follows :

in crore

Particulars

As at March 31,

2018

2017

Preference securities

Airviz Inc.

6

9

2,82,279 (2,82,279) Series A Preferred Stock, fully paid up, par value USD 0.001 each

ANSR Consulting

10

Nil (52,631) Series A Preferred Stock, fully paid up, par value USD 0.001 each

Whoop Inc

20

15

16,48,352 (16,48,352) Series B Preferred Stock, fully paid up, par value USD 0.0001 each

CloudEndure Ltd.

26

37

25,59,290 (25,59,290) Preferred Series B Shares, fully paid up, par value ILS 0.01 each

Nivetti Systems Private Limited

10

10

2,28,501 (2,28,501) Preferred Stock, fully paid up, par value 1 each

Waterline Data Science, Inc

23

24

39,33,910 (39,33,910) Preferred Series B Shares, fully paid up, par value USD 0.00001 each

Trifacta Inc.

21

26

11,80,358 (11,80,358) Preferred Stock

Ideaforge

10

5,402 (Nil) Series A compulsorily convertible cumulative Preference shares of 10 each, fully paid up.

TOTAL INVESTMENT IN Preference securities

116

131

Equity instruments

OnMobile Systems Inc., USA

Nil (21,54,100) common stock at USD 0.4348 each, fully paid up, par value USD 0.001 each

Merasport Technologies Private Limited

2,420 (2,420) equity shares at 8,052 each, fully paid up, par value 10 each

Global Innovation and Technology Alliance

1

1

15,000 (15,000) equity shares at 1,000 each, fully paid up, par value 1,000 each

Ideaforge

100 (Nil) equity shares at 10, fully paid up

TOTAL INVESTMENT IN Equity instruments

1

1

Others

Stellaris Venture Partners India

7

3

TOTAL INVESTMENT IN OTHERS

7

3

TOTAL

124

135

2.3.4 Details of investments in tax-free bonds and government bonds

The balances held in tax-free bonds as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

Face value

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

7.04% Indian Railway Finance Corporation Limited Bonds 03MAR2026

10,00,000

470

50

470

50

7.16% Power Finance Corporation Ltd. Bonds 17JUL2025

10,00,000

1,000

106

1,000

107

7.18% Indian Railway Finance Corporation Limited Bonds 19FEB2023

1,000

20,00,000

201

20,00,000

201

7.28% Indian Railway Finance Corporation Limited Bonds 21DEC2030

1,000

4,22,800

42

4,22,800

42

7.28% National Highways Authority of India Bonds 18SEP2030

10,00,000

3,300

343

3,300

343

7.34% Indian Railway Finance Corporation Limited Bonds 19FEB2028

1,000

21,00,000

211

21,00,000

211

7.35% National Highways Authority of India Bonds 11JAN2031

1,000

5,71,396

57

5,71,396

57

7.93% Rural Electrification Corporation Limited Bonds 27MAR2022

1,000

2,00,000

21

2,00,000

21

8.10% Indian Railway Finance Corporation Limited Bonds 23FEB2027

1,000

5,00,000

52

5,00,000

53

8.26% India Infrastructure Finance Company Limited Bonds 23AUG2028

10,00,000

1,000

100

1,000

100

8.30% National Highways Authority of India Bonds 25JAN2027

1,000

5,00,000

53

5,00,000

53

8.35% National Highways Authority of India Bonds 22NOV2023

10,00,000

1,500

150

1,500

150

8.46% India Infrastructure Finance Company Limited Bonds 30AUG2028

10,00,000

2,000

200

2,000

200

8.46% Power Finance Corporation Limited Bonds 30AUG2028

10,00,000

1,500

150

1,500

150

8.48% India Infrastructure Finance Company Limited Bonds 05SEP2028

10,00,000

450

45

450

45

8.54% Power Finance Corporation Limited Bonds 16NOV2028

1,000

5,00,000

50

5,00,000

50

TOTAL INVESTMENTS IN TAX-FREE BONDS

68,05,416

1,831

68,05,416

1,833

The balances held in government bonds as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

Face value PHP

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

Treasury Notes Philippines Govt. 09MAY2018

100

1,00,000

1

TOTAL INVESTMENTS IN GOVERNMENT BONDS

1,00,000

1

2.3.5 Details of investments in liquid mutual fund units and fixed maturity plan securities

The balances held in liquid mutual funds as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

Aditya Birla Sun Life Cash Plus – Growth – Direct Plan

1,33,97,873

350

ICICI Prudential Liquid – Direct Plan – Growth

1,03,88,743

250

IDFC Cash Fund – Direct Plan- Growth

12,65,679

250

Kotak Low Duration Fund – Direct Plan – Growth (Ultra Short-Term)

15,02,564

305

L&T Liquid Fund – Direct Plan – Growth

6,72,806

150

Reliance Liquid Fund – Treasury Plan – Direct Growth Plan- Growth Option

8,82,465

350

SBI Premier Liquid Fund- Direct Plan – Growth

3,91,909

100

TOTAL INVESTMENTS IN LIQUID MUTUAL FUND UNITS

2,85,02,039

1,755

The balances held in fixed maturity plan securities as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

Aditya Birla Sun Life Fixed Term Plan- Series OD 1145 Days –
GR Direct

5,00,00,000

54

5,00,00,000

51

Aditya Birla Sun Life Fixed Term Plan – Series OE 1153 days –
GR Direct

2,50,00,000

27

2,50,00,000

25

HDFC FMP 1155D Feb 2017 – Direct Growth – Series 37

2,80,00,000

30

2,80,00,000

28

HDFC FMP 1169D Feb 2017 – Direct – Quarterly Dividend –
Series 37

4,50,00,000

45

4,50,00,000

45

ICICI FMP Series 80 – 1194 D Plan F Div

4,00,00,000

43

4,00,00,000

40

ICICI Prudential Fixed Maturity Plan Series 80 – 1187 Days Plan G Direct Plan

4,20,00,000

45

4,20,00,000

42

ICICI Prudential Fixed Maturity Plan Series 80 – 1253 Days Plan J Direct Plan

3,00,00,000

32

3,00,00,000

30

IDFC Fixed Term Plan Series 129 Direct Plan – Growth 1147 Days

1,00,00,000

11

1,00,00,000

10

IDFC Fixed Term Plan Series 131 Direct Plan – Growth 1139 Days

1,50,00,000

16

1,50,00,000

15

Kotak FMP Series 199 Direct – Growth

3,50,00,000

37

3,50,00,000

36

Reliance Fixed Horizon Fund – XXXII Series 8 – Dividend Plan

3,50,00,000

36

3,50,00,000

35

Reliance Yearly Interval Fund Series 1 – Direct Plan- Growth Plan

10,69,06,898

151

TOTAL INVESTMENTS IN FIXED MATURITY PLAN SECURITIES

35,50,00,000

376

46,19,06,898

508

2.3.6 Details of investments in non-convertible debentures, certificates of deposit and commercial paper

The balances held in non-convertible debenture units as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

Face value

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

7.48% Housing Development Finance Corporation Ltd 18NOV2019

1,00,00,000

50

51

50

52

7.58% LIC Housing Finance Ltd 28FEB2020

10,00,000

1,000

101

1,000

100

7.58% LIC Housing Finance Ltd 11JUN2020

10,00,000

500

52

500

51

7.59% LIC Housing Finance Ltd 14OCT2021

10,00,000

3,000

306

3,000

309

7.75% LIC Housing Finance Ltd 27AUG2021

10,00,000

1,250

129

1,250

129

7.79% LIC Housing Finance Ltd 19JUN2020

10,00,000

500

53

500

52

7.80% Housing Development Finance Corporation Ltd 11NOV2019

1,00,00,000

150

153

150

155

7.81% LIC Housing Finance Ltd 27APR2020

10,00,000

2,000

214

2,000

208

7.95% Housing Development Finance Corporation Ltd 23SEP2019

1,00,00,000

50

53

50

53

8.02% LIC Housing Finance Ltd 18FEB2020

10,00,000

500

50

500

51

8.26% Housing Development Finance Corporation Ltd 12AUG2019

1,00,00,000

100

105

100

106

8.34% Housing Development Finance Corporation Ltd 06MAR2019

1,00,00,000

200

215

200

217

8.37% LIC Housing Finance Ltd 03OCT2019

10,00,000

2,000

216

2,000

218

8.37% LIC Housing Finance Ltd 10MAY2021

10,00,000

500

54

500

55

8.43% IDFC Bank Ltd 30JAN2018

10,00,000

1,000

102

8.46% Housing Development Finance Corporation Ltd 11MAR2019

1,00,00,000

50

54

50

54

8.47% LIC Housing Finance Ltd 21JAN2020

10,00,000

500

51

500

52

8.50% Housing Development Finance Corporation Ltd 31AUG2020

1,00,00,000

50

54

50

54

8.54% IDFC Bank Ltd 30MAY2018

10,00,000

1,500

194

1,500

182

8.59% Housing Development Finance Corporation Ltd 14JUN2019

1,00,00,000

50

51

50

51

8.60% LIC Housing Finance Ltd 29JUL2020

10,00,000

1,400

151

1,400

152

8.61% LIC Housing Finance Ltd 11DEC2019

10,00,000

1,000

104

1,000

104

8.66% IDFC Bank Ltd 25JUN2018

10,00,000

1,520

196

1,520

184

8.72% Housing Development Finance Corporation Ltd 15APR2019

1,00,00,000

75

76

75

77

8.75% Housing Development Finance Corporation Ltd 13JAN2020

500,000

5,000

256

5,000

260

8.75% LIC Housing Finance Ltd 14JAN2020

10,00,000

1,070

112

1,070

112

8.75% LIC Housing Finance Ltd 21DEC2020

10,00,000

1,000

102

1,000

104

8.97% LIC Housing Finance Ltd 29OCT2019

10,00,000

500

52

500

53

9.45% Housing Development Finance Corporation Ltd 21AUG2019

10,00,000

3,000

323

3,000

327

9.65% Housing Development Finance Corporation Ltd 19JAN2019

10,00,000

500

52

500

53

TOTAL INVESTMENTS IN NON-CONVERTIBLE DEBENTURES

29,015

3,580

30,015

3,677

The balances held in certificates of deposit as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

Face value

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

Andhra Bank

1,00,000

35,000

344

Axis Bank

1,00,000

1,85,000

1,767

2,93,600

2,800

Corporation Bank

1,00,000

33,500

327

DBS Bank

1,00,000

5,000

49

HDFC Bank

1,00,000

15,000

147

ICICI Bank

1,00,000

1,10,000

1,035

42,500

413

IDFC Bank

1,00,000

1,35,000

1,281

IndusInd Bank

1,00,000

1,35,000

1,272

1,06,400

1,011

Kotak Bank

1,00,000

70,000

680

74,000

704

Vijaya Bank

1,00,000

14,000

137

Yes Bank

1,00,000

60,000

569

TOTAL INVESTMENTS IN CERTIFICATES
OF DEPOSIT

5,15,000

4,901

7,99,000

7,635

The balances held in commercial paper as at March 31, 2018 and March 31, 2017 are as follows :

in crore, except as otherwise stated

Particulars

Face value

As at March 31, 2018

As at March 31, 2017

Units

Amount

Units

Amount

Life Insurance Corporation of India

5,00,000

6,000

293

TOTAL INVESTMENTS IN COMMERCIAL PAPER

6,000

293

2.4 Loans

in crore

Particulars

As at March 31,

2018

2017

Non-current

Unsecured, considered good

Other loans

Loans to employees

19

5

19

5

Unsecured, considered doubtful

Loans to employees

12

17

31

22

Less : Allowance for doubtful loans to employees

12

17

Total non-current loans

19

5

Current

Unsecured, considered good

Loans to subsidiaries
(Refer to Note 2.23)

185

69

Other loans

Loans to employees

208

241

Total current loans

393

310

Total loans

412

315

2.5 Other financial assets

in crore

Particulars

As at March 31,

2018

2017

Non-current

Security deposits(1)

48

81

Rental deposits(1)

129

135

Total non-Current other financial assets

177

216

Current

Security deposits(1)

2

2

Rental deposits(1)

6

2

Restricted deposits(1)

1,415

1,309

Unbilled revenues(1)(4)

3,573

3,200

Interest accrued but not due(1)

739

514

Foreign currency forward and options contracts(2)(3)

16

268

Others(1)(5)

155

108

Total Current other financial assets

5,906

5,403

Total other financial assets

6,083

5,619

(1) Financial assets carried at amortized cost

6,067

5,351

(2) Financial assets carried at fair value through other comprehensive income

12

52

(3) Financial assets carried at fair value through profit or loss

4

216

(4) Includes dues from subsidiaries
(Refer to Note 2.23)

32

47

(5) Includes dues from subsidiaries
(Refer to Note 2.23)

40

18

Restricted deposits represent deposits with financial institutions to settle employee-related obligations as and when they arise during the normal course of business.

2.6 Trade receivables(1)

in crore

Particulars

As at March 31,

2018

2017

Current

Unsecured

Considered good(2)

12,151

10,960

Considered doubtful

315

289

12,466

11,249

Less : Allowances for credit losses

315

289

Total trade receivables

12,151

10,960

(1) Includes dues from companies where directors are interested

1

(2) Includes dues from subsidiaries
(Refer to Note 2.23)

335

235

2.7 Cash and cash equivalents

in crore

Particulars

As at March 31,

2018

2017

Balances with banks

In current and deposit accounts

10,789

12,222

Cash on hand

Others

Deposits with financial institution

5,981

6,931

Total cash and cash equivalents

16,770

19,153

Balances with banks in unpaid dividend accounts

22

17

Deposits with more than 12 months maturity

6,187

6,765

Balances with banks held as margin money deposits against guarantees

353

394

Cash and cash equivalents as at March 31, 2018 and March 31, 2017 include restricted cash and bank balances of 375 crore and 411 crore, respectively. The restrictions are primarily on account of bank balances held as margin money deposits against guarantees and balances held in unpaid dividend bank accounts.

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

The details of balances with banks as on Balance Sheet dates are as follows :

in crore

Particulars

As at March 31,

2018

2017

In current accounts

ANZ Bank, Taiwan

9

3

Bank of America, USA

814

769

Bank of Baroda, Mauritius

1

BNP Paribas Bank, Norway

88

7

Citibank N.A., Australia

184

8

Citibank N.A., Dubai

5

1

Citibank N.A., EEFC
(US Dollar account)

4

1

Citibank N.A., Hungary

6

3

Citibank N.A., India

3

2

Citibank N.A., Japan

18

12

Citibank N.A., New Zealand

8

6

Citibank N.A., South Africa

33

9

Citibank N.A., South Korea

2

1

Deutsche Bank, Belgium

27

10

Deutsche Bank, EEFC
(Australian Dollar account)

2

38

Deutsche Bank, EEFC
(Euro account)

14

11

Deutsche Bank, EEFC
(Swiss Franc account)

2

2

Deutsche Bank, EEFC
(US Dollar account)

27

73

Deutsche Bank, EEFC (United Kingdom Pound Sterling account)

8

8

Deutsche Bank, France

19

8

Deutsche Bank, Germany

70

48

Deutsche Bank, India

40

9

Deutsche Bank, Malaysia

5

7

Deutsche Bank, Netherlands

8

2

Deutsche Bank, Philippines

14

4

Deutsche Bank, Russia

3

3

Deutsche Bank, Russia
(US Dollar account)

5

1

Deutsche Bank, Singapore

17

6

Deutsche Bank, Spain

1

Deutsche Bank, Switzerland

18

5

Deutsche Bank, Switzerland
(US Dollar account)

1

Deutsche Bank, United Kingdom

74

25

HSBC Bank, Hong Kong

2

1

ICICI Bank, EEFC
(US Dollar account)

5

3

ICICI Bank, India

33

40

Nordbanken, Sweden

26

22

Punjab National Bank, India

12

6

Royal Bank of Canada, Canada

9

5

Splitska Banka D.D., Société Générale Group, Croatia

8

State Bank of India

6

1,624

1,166

In deposit accounts

Axis Bank

945

Barclays Bank

200

825

HDFC Bank

2,423

349

HSBC Bank

500

ICICI Bank

3,467

4,351

IDBI Bank

1,750

IDFC Bank

1,500

IndusInd Bank

1,000

191

Kotak Mahindra Bank

500

South Indian Bank

200

200

Standard Chartered Bank

500

Syndicate Bank

49

Yes Bank

485

8,790

10,645

In unpaid dividend accounts

Axis Bank, unpaid dividend account

1

2

HDFC Bank, unpaid dividend account

1

2

ICICI Bank, unpaid dividend account

20

13

22

17

In margin money deposits against guarantees

Canara Bank

151

177

ICICI Bank

202

217

353

394

Deposits with financial institution

HDFC Limited

4,781

6,231

LIC Housing Finance Limited

1,200

700

5,981

6,931

Total cash and cash equivalents

16,770

19,153

2.8 Other assets

in crore

Particulars

As at March 31,

2018

2017

Non-current

Capital advances

420

562

Advances other than capital advance

Prepaid gratuity
(Refer to Note 2.20)

23

56

Others

Prepaid expenses

49

95

Deferred contract cost

262

283

Withholding taxes and others

1,407

Total non-current other assets

2,161

996

Current

Advances other than capital advance

Payment to vendors for supply of goods

103

87

Others

Prepaid expenses(1)

449

387

Deferred contract cost

44

74

Withholding taxes and others

843

1,665

Total current other assets

1,439

2,213

Total other assets

3,600

3,209

(1) Includes dues from subsidiaries (Refer to Note 2.23)

115

56

Deferred contract costs are upfront costs incurred for the contract and are amortized over the term of the contract. Withholding taxes and others primarily consist of input tax credits.

2.9 Financial instruments

Accounting policy

2.9.1 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.

2.9.2 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

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, 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 recognized in a business combination, which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(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 options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

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

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

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

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

(ii) Cash flow hedge

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

When a derivative is designated as a cash flow 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 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 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 Statement of Profit and Loss.

c. Share capital

Ordinary shares

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

2.9.3 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.

2.9.4 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 ‘Financial instruments by category’ 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.

2.9.5 Impairment

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

Financial instruments by category

The carrying value and fair value of financial instruments by categories as at March 31, 2018 are as follows :

in crore

Particulars

Amortized cost

Financial assets / liabilities at fair value through profit or loss

Financial assets / liabilities at fair value through OCI

Total carrying value

Total fair value

Designated upon initial recognition

Mandatory

Equity instruments designated upon initial recognition

Mandatory

Assets

Cash and cash equivalents
(Refer to Note 2.7)

16,770

16,770

16,770

Investments (Refer to Note 2.3)

Preference securities, equity instruments and others

7

117

124

124

Tax-free bonds and government bonds

1,832

1,832

(2) 2,079

Redeemable, non-convertible debentures(1)

1,780

1,780

1,780

Fixed maturity plan securities

376

376

376

Certificates of deposit

4,901

4,901

4,901

Non-convertible debentures

3,580

3,580

3,580

Commercial paper

293

293

293

Trade receivables
(Refer to Note 2.6)

12,151

12,151

12,151

Loans (Refer to Note 2.4)

412

412

412

Other financial assets
(Refer to Note 2.5)

6,067

4

12

6,083

(3) 6,001

Total

39,012

387

117

8,786

48,302

48,467

Liabilities

Trade payables
(Refer to Note 2.12)

738

738

738

Other financial liabilities
(Refer to Note 2.11)

4,241

91

3

4,335

4,335

Total

4,979

91

3

5,073

5,073

(1) The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.

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

(3) Excludes interest accrued on tax-free bonds

The carrying value and fair value of financial instruments by categories as at March 31, 2017 were as follows :

in crore

Particulars

Amortized cost

Financial assets / liabilities at fair value through profit or loss

Financial assets / liabilities at fair value through OCI

Total carrying value

Total fair value

Designated upon initial recognition

Mandatory

Equity instruments designated upon initial recognition

Mandatory

Assets

Cash and cash equivalents
(Refer to Note 2.7)

19,153

19,153

19,153

Investments (Refer to Note 2.3)

Preference securities, equity instruments and others

3

132

135

135

Tax-free bonds and government bonds

1,833

1,833

(2) 2,142

Liquid mutual fund units

1,755

1,755

1,755

Redeemable, non-convertible debentures(1)

2,129

2,129

2,129

Fixed maturity plans

508

508

508

Certificates of deposit

7,635

7,635

7,635

Non-convertible debentures

3,677

3,677

3,677

Trade receivables
(Refer to Note 2.6)

10,960

10,960

10,960

Loans (Refer to Note 2.4)

315

315

315

Other financial assets
(Refer to Note 2.5)

5,351

216

52

5,619

(3) 5,537

Total

39,741

2,482

132

11,364

53,719

53,946

Liabilities

Trade payables (Refer to Note 2.12)

269

269

269

Other financial liabilities
(Refer to Note 2.11)

3,867

87

3,954

3,954

Total

4,136

87

4,223

4,223

(1) The carrying value of debentures approximates fair value as the instruments are at prevailing market rates.

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

(3) Excludes interest accrued on tax-free bonds

Fair value hierarchy

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

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

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

The fair value hierarchy of assets and liabilities as at March 31, 2018 is as follows :

in crore

Particulars

As at March 31, 2018

Fair value measurement
at end of the reporting
period / year using

Level 1

Level 2

Level 3

Assets

Investments in tax-free bonds (Refer to Note 2.3)

2,078

1,806

272

Investments in government bonds (Refer to Note 2.3)

1

1

Investments in equity instruments (Refer to Note 2.3)

1

1

Investments in preference securities (Refer to Note 2.3)

116

116

Investments in fixed maturity plan securities (Refer to Note 2.3)

376

376

Investments in certificates of deposit (Refer to Note 2.3)

4,901

4,901

Investments in non-convertible debentures (Refer to Note 2.3)

3,580

2,493

1,087

Investments in commercial paper (Refer to Note 2.3)

293

293

Other investments (Refer to Note 2.3)

7

7

Derivative financial instruments - gain on outstanding foreign currency forward and options contracts (Refer to Note 2.5)

16

16

Liabilities

Derivative financial instruments - loss on outstanding foreign currency forward and options contracts (Refer to Note 2.11)

40

40

Liability towards contingent consideration (Refer to Note 2.11)(1)(2)

54

54

(1) Pertains to contingent consideration payable to selling shareholders of Kallidus and Brilliant Basics Holdings Limited as per the share purchase agreement

(2) Discounted 21 crore at 10% pertaining to Brilliant Basics

During the year ended March 31, 2018, tax-free bonds and non-convertible debentures of 1,797 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price, and 743 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs.

The fair value hierarchy of assets and liabilities as at March 31, 2017 was as follows :

in crore

Particulars

As at March 31, 2017

Fair value measurement
at end of the reporting
period / year using

Level 1

Level 2

Level 3

Assets

Investments in liquid mutual fund units (Refer to Note 2.3)

1,755

1,755

Investments in tax-free bonds (Refer to Note 2.3)

2,142

206

1,936

Investments in equity instruments (Refer to Note 2.3)

1

1

Investments in preference securities (Refer to Note 2.3)

131

131

Investments in fixed maturity plan securities (Refer to Note 2.3)

508

508

Investments in certificates of deposit (Refer to Note 2.3)

7,635

7,635

Investments in non-convertible debentures (Refer to Note 2.3)

3,677

3,160

517

Other investments (Refer to Note 2.3)

3

3

Derivative financial instruments - gain on outstanding foreign currency forward and options contracts (Refer to Note 2.5)

268

268

Liabilities

Derivative financial instruments - loss on outstanding foreign currency forward and options contracts (Refer to Note 2.11)

2

2

Liability towards contingent consideration (Refer to Note 2.11)(1)(2)

85

85

(1) Pertains to contingent consideration payable to selling shareholders of Kallidus as per the share purchase agreement.

(2) Discounted 91 crore at 14.2%

During the year ended March 31, 2017, tax-free bonds of 115 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.

The movement in contingent consideration as at March 31, 2018 from March 31, 2017 is mainly on account of settlement of 45 crore pertaining to Kallidus acquisition and addition of 17 crore in relation to acquisition of Brilliant Basics Holdings Limited (Refer to Note 2.2).

Financial risk management

Financial risk factors : The Company’s activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

Market risk : The Company operates internationally and a major portion of the business is transacted in several currencies and consequently, the Company is exposed to foreign exchange risk through its sales and services in the United States and elsewhere, and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

The foreign currency risks from financial instruments as at March 31, 2018 are as follows :

in crore

Particulars

USD

Euro

GBP

AUD

Other currencies

Total

Cash and cash equivalents

858

139

82

186

271

1,536

Trade receivables

7,776

1,522

871

743

550

11,462

Other financials assets
(including loans)

2,196

597

335

159

305

3,592

Trade payables

(312)

(60)

(168)

(36)

(22)

(598)

Other financial liabilities

(1,962)

(252)

(148)

(220)

(162)

(2,744)

Net assets / (liabilities)

8,556

1,946

972

832

942

13,248

The foreign currency risks from financial instruments as at March 31, 2017 were as follows :

in crore

Particulars

USD

Euro

GBP

AUD

Other currencies

Total

Cash and cash equivalents

849

79

33

45

97

1,103

Trade receivables

7,611

1,005

793

533

361

10,303

Other financials assets
(including loans)

2,686

436

365

148

136

3,771

Trade payables

(145)

(5)

(11)

(12)

(22)

(195)

Other financial liabilities

(1,847)

(227)

(169)

(186)

(137)

(2,566)

Net assets / (liabilities)

9,154

1,288

1,011

528

435

12,416

Sensitivity analysis between Indian rupee and USD

Particulars

Year ended March 31,

2018

2017

Impact on the Company’s incremental operating margins

0.52%

0.52%

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward and options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

The details in respect of outstanding foreign currency forward and options contracts are as follows :

Particulars

As at March 31, 2018

As at March 31, 2017

In million

In crore

In million

In crore

Derivatives designated as cash flow hedges

Forward contracts

In AUD

130

644

In Euro

95

658

In GBP

40

324

Options Contracts

In AUD

60

300

In Euro

100

808

40

277

In GBP

20

184

Other derivatives

Forward contracts

In AUD

30

149

In CAD

20

99

In Euro

86

695

106

735

In JPY

550

34

In NZD

16

76

In NOK

40

34

In ZAR

25

14

In SGD

5

25

5

23

In SEK

50

40

50

36

In CHF

21

146

10

65

In USD

556

3,624

480

3,113

In GBP

45

415

70

566

Options contracts

In AUD

20

100

In CAD

13

65

In Euro

45

363

25

173

In CHF

5

33

In USD

320

2,086

195

1,265

In GBP

25

231

30

243

Total forward and options CONTRACTS

9,307

8,336

The foreign exchange forward and options contracts mature within 12 months. The table below analyzes the derivative financial instruments into relevant maturity groupings based on the remaining period as at the Balance Sheet date :

in crore

Particulars

As at March 31,

2018

2017

Not later than one month

2,693

2,215

Later than one month and not later than three months

4,274

4,103

Later than three months and not later than one year

2,340

2,018

Total

9,307

8,336

During the years ended March 31, 2018 and March 31, 2017, the Company has designated 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. The related hedge transactions for balance in cash flow hedging reserve as at March 31, 2018 are expected to occur and reclassified to the Statement of Profit or Loss within three months.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in the Statement of Profit or Loss at the time of the hedge relationship rebalancing.

The reconciliation of effective portion of cash flow hedges is as follows :

in crore

Particulars

Year ended
March 31,

2018

2017

Gain / (Loss)

Balance at the beginning of the year

39

Gain / (Loss) recognized in other comprehensive income during the year

(93)

121

Amount reclassified to profit and loss during the year

41

(69)

Tax impact on above

13

(13)

Balance at the end of the year

39

The Company offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the Company intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

The quantitative information about offsetting of derivative financial assets and derivative financial liabilities is as follows :

in crore

Particulars

As at March 31, 2018

As at March 31, 2017

Derivative financial asset

Derivative financial liability

Derivative financial asset

Derivative financial liability

Gross amount of recognized financial asset / liability

20

(44)

269

(3)

Amount set off

(4)

4

(1)

1

Net amount presented in Balance Sheet

16

(40)

268

(2)

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to 12,151 crore and 10,960 crore as at March 31, 2018 and March 31, 2017, respectively and unbilled revenues amounting to 3,573 crore and 3,200 crore as at March 31, 2018 and March 31, 2017, respectively. Trade receivables and unbilled revenues are typically unsecured and are derived from revenue earned from customers primarily located in the United States. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit default swap quotes, credit ratings from international credit rating agencies and the Company’s historical experience for customers.

The details in respect of percentage of revenues generated from top customer and top 10 customers are as follows :

in %

Particulars

Year ended March 31,

2018

2017

Revenue from top customer

3.9

3.9

Revenue from top 10 customers

21.0

23.1

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the years ended March 31, 2018 and March 31, 2017 was 18 crore and 135 crore respectively.

The movement in credit loss allowance on customer balances is as follows :

in crore

Particulars

Year ended March 31,

2018

2017

Balance at the beginning

379

249

Impairment loss recognized

18

135

Amounts written off

(3)

(1)

Translation differences

7

(4)

Balance at the end

401

379

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, fixed maturity plan securities, quoted bonds issued by government and quasi-government organizations, non-convertible debentures issued by government-aided institutions, certificates of deposit and commercial paper.

Liquidity risk

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding borrowings. The Company believes that the working capital is sufficient to meet its current requirements.

As at March 31, 2018, the Company had a working capital of 30,903 crore including cash and cash equivalents of 16,770 crore and current investments of 5,906 crore. As at March 31, 2017, the Company had a working capital of 35,896 crore including cash and cash equivalents of 19,153 crore and current investments of 9,643 crore.

As at March 31, 2018 and March 31, 2017, the outstanding compensated absences were 1,260 crore and 1,142 crore, respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

The details regarding the contractual maturities of significant financial liabilities as at March 31, 2018 are as follows :

in crore

Particulars

Less than 1 year

1-2 years

2-4 years

4-7 years

Total

Trade payables

738

738

Other financial liabilities (excluding liability towards acquisition) (Refer to Note 2.11)

4,241

4,241

Liability towards acquisitions on an undiscounted basis (contingent consideration)

41

7

7

55

The details regarding the contractual maturities of significant financial liabilities as at March 31, 2017 were as follows :

in crore

Particulars

Less than 1 year

1-2 years

2-4 years

4-7 years

Total

Trade payables

269

269

Other financial liabilities (excluding liability towards acquisition) (Refer to Note 2.11)

3,867

3,867

Liability towards acquisitions on an undiscounted basis (contingent consideration)

45

46

91

2.10 Equity

Equity share capital

in crore, except as otherwise stated

Particulars

As at March 31,

2018

2017

Authorized

Equity shares, 5 par value 240,00,00,000 (240,00,00,000) equity shares

1,200

1,200

Issued, subscribed and paid-up

Equity shares, 5 par value(1) 218,41,14,257 (229,69,44,664) equity shares fully paid-up

1,092

1,148

1,092

1,148

(1) Refer to Note 2.21 for details of basic and diluted shares.

Note : Forfeited shares amounted to 1,500 ( 1,500)

The Company has only one class of shares referred to as equity shares having a par value of 5. Each holder of equity shares is entitled to one vote per share. The equity shares represented by ADSs carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share

In the period of five years immediately preceding March 31, 2018 :

  • The Company has allotted 114,84,72,332 and 57,42,36,166 fully paid-up shares of face value 5 each during the quarter ended June 30, 2015 and December 31, 2014, pursuant to bonus issue approved by the shareholders through postal ballot. For both the bonus issues, bonus share of one equity share for every equity share held, and a stock dividend of one ADS for every ADS held, respectively, has been allotted. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt (ADR) holder remains unchanged. Options granted under the restricted stock unit plan (RSU) have been adjusted for bonus shares.

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.

Dividends

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

The Company declares and pays dividends in Indian rupees. The remittance of dividends outside India is governed by Indian law on foreign exchange and is subject to applicable distribution taxes. Dividend distribution tax paid by subsidiaries may be reduced / available as a credit against dividend distribution tax payable by Infosys Limited.

The amount of per share dividend recognized as distribution to equity shareholders is as follows :

in

Particulars

Year ended March 31,

2018

2017

Final dividend for fiscal 2016

14.25

Interim dividend for fiscal 2017

11.00

Final dividend for fiscal 2017

14.75

Interim dividend for fiscal 2018

13.00

Effective from fiscal 2018, the Company’s policy is to payout up to 70% of the free cash flow of the corresponding financial year in such manner (including by way of dividend and / or share buyback) as may be decided by the Board from time to time, 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 International Financial Reporting Standards. Dividend payout includes dividend distribution tax.

The Board of Directors recommended a final dividend of 20.50 per equity share for the financial year ended March 31, 2018 and a special dividend of 10 per equity share. The payment is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company, to be held on June 23, 2018 and if approved would result in a cash outflow of approximately 7,982 crore, including dividend distribution tax.

The Board of Directors, at its meeting on October 24, 2017, declared an interim dividend of 13 per equity share, which resulted in a cash outflow of 3,422 crore, inclusive of dividend distribution tax.

During the year ended March 31, 2018, the Company received 846 crore as dividend from Infosys BPM, its majority owned subsidiary. Dividend distribution tax paid by the subsidiary on such dividend has been reduced as credit against dividend distribution tax payable by Infosys.

Buyback

The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buy back its fully paid-up equity shares of face value of 5 each from the eligible equity shareholders of the Company for an amount not exceeding 13,000 crore. The shareholders approved the said proposal of buyback of equity shares through the postal ballot that concluded on October 7, 2017. The buyback offer comprised a purchase of 11,30,43,478 equity shares aggregating 4.92% of the paid-up equity share capital of the Company at a price of 1,150 per equity share. The buyback was offered to all eligible equity shareholders (including those who became equity shareholders as on the Record date by cancelling ADSs and withdrawing underlying Equity shares) of the Company as on the record date (i.e November 1, 2017) on a proportionate basis through the ‘Tender offer’ route. The Company concluded the buyback procedures on December 27, 2017 and 11,30,43,478 equity shares were extinguished. The Company has utilized its securities premium and general reserve for the buyback of its shares. In accordance with Section 69 of the Companies Act, 2013, the Company has created a Capital Redemption Reserve of 56 crore equal to the nominal value of the shares bought back as an appropriation from the 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 March 31, 2018, 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.

The details of shareholders holding more than 5% shares as at March 31, 2018 and March 31, 2017 are set out below :

in crore, except as stated otherwise

Name of the shareholder

As at March 31, 2018

As at March 31, 2017

No. of shares

% held

No. of shares

% held

Deutsche Bank Trust Company Americas (Depository of ADRs – legal ownership)

37,99,05,859

17.39

38,33,17,937

16.69

Life Insurance Corporation of India

14,95,14,017

6.85

16,14,36,123

7.03

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2018 and March 31, 2017 is as follows :

in crore, except as stated otherwise

Particulars

As at March 31, 2018

As at March 31, 2017

No. of shares

Amount

No. of shares

Amount

Number of shares at the beginning of the period

229,69,44,664

1,148

229,69,44,664

1,148

Add : Shares issued on exercise of employee stock options

2,13,071

Less : Shares bought back

11,30,43,478

56

Number of shares at the end of the period

218,41,14,257

1,092

229,69,44,664

1,148

Employee Stock Option Plan (ESOP)

Accounting Policy

The Company recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with Ind AS 102, Share-based Payments. The estimated fair value of awards is charged to 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 options outstanding account.

Amendment to Ind AS 102

Effective April 1, 2017, the Company adopted the amendment to Ind AS 102 which provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. The adoption of amendment did not have any material effect on the financial statements.

2015 Stock Incentive Compensation Plan (the 2015 Plan) (formerly 2011 RSU Plan) : On March 31, 2016, pursuant to the approval by the shareholders through a postal ballot, the Board has been authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan (the 2015 Plan). The maximum number of shares under the 2015 Plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). Out of this, 1,70,38,883 equity shares will be issued as RSUs at par value and 70,00,000 equity shares will be issued as stock options at market price on the date of the grant. These instruments will generally vest over a period of four years and the Company expects to grant the instruments under the 2015 Plan over the period of 4 to 7 years.

Controlled trust holds 1,08,01,956 and 1,12,89,514 shares as at March 31, 2018 and March 31, 2017, respectively under the 2015 Plan, out of which 1,00,000 equity shares have been earmarked for welfare activities of the employees.

Stock incentives granted to Salil Parekh (CEO & MD) : Pursuant to the approval of the shareholders through a postal ballot on February 20, 2018, Salil Parekh (CEO & MD) is eligible to receive under the 2015 Plan,

  1. an annual grant of RSUs of fair value 3.25 crore which will vest over time in three equal annual installments upon completion of each year of service from the respective grant date
  2. a one-time grant of RSUs of fair value 9.75 crore which will vest over time in two equal annual installments upon completion of each year of service from the grant date and
  3. an annual grant of performance-based RSUs of fair value 13 crore which will vest after completion of three years the first of which concludes on March 31, 2021, subject to achievement of performance targets set by the Board or its committee.

The Board, based on the recommendations of the nomination and remuneration committee, approved on February 27, 2018, the annual time-based grant for fiscal 2018 of 28,256 RSUs and the one-time time-based grant of 84,768 RSUs. The grants were made effective February 27, 2018. Though the annual time-based grants for the remaining employment term have not been granted as of March 31, 2018 , in accordance with Ind AS 102, Share-based Payments, the Company has recorded employment stock compensation expense.

Stock incentives granted to Dr. Vishal Sikka : Consequent to Dr. Vishal Sikka’s resignation from the Company on August 24, 2017, the unvested stock incentives (time-based and performance-based awards) granted to him were forfeited.

Stock incentives granted to COO : The Nomination and Remuneration Committee (‘the Committee’), at its meeting held on October 14, 2016 recommended a grant of 27,250 RSUs and 43,000 ESOPs amounting to 4 crore to U.B. Pravin Rao, under the 2015 Plan and the same was approved by the shareholders through a postal ballot on March 31, 2017. These RSUs and ESOPs have been granted effective May 2, 2017. These RSUs and stock options would vest over a period of four years and shall be exercisable within the period as approved by the Committee. 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, as approved by the shareholders.

Stock incentives granted to KMP (other than CEO, Dr. Vishal Sikka, and COO) : On November 1, 2016, 2,47,250 RSUs and 5,02,550 stock options were granted under the 2015 Plan, to key managerial personnel (KMP), excluding Dr. Vishal Sikka and the COO, based on fiscal 2016 performance. On August 1, 2017, 58,150 RSUs and 44,450 ESOPs were granted to KMP. These RSUs and stock options will generally vest over a period of four years and shall be exercisable within the period as approved by the Committee. 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. On February 27, 2018, based on the recommendation and approval of the nomination and remuneration committee, the Company granted 2,14,950 RSUs to KMP other than CEO and COO. These instruments will vest over a period of four years and are subject to continued service.

During the year ended March 31, 2018, three of the KMP have resigned (Refer to Note 2.23, Related party transactions for further details) and hence the RSUs and stock options granted to them were forfeited.

Stock incentive granted to employees other than KMP : During fiscal 2017, the Company granted 25,06,740 RSUs and 7,03,300 ESOPs and 1,12,210 incentive units (cash-settled) to certain eligible employees at mid and senior levels under the 2015 Plan. Further, on May 2, 2017, the Company granted 37,090 RSUs (includes equity shares and equity shares represented by ADSs) at par value, 73,600 ESOPs (including equity shares and equity shares represented by ADSs) to be exercised at market price at the time of grant, to certain employees at the senior management level. On August 1, 2017, 7,450 incentive units (cash-settled) were granted to employees at the senior management level. These instruments will vest over a period of four years and are subject to continued service. On February 27, 2018 15,59,920 RSUs and 42,590 incentive units (cash-settled) were granted to eligible employees. These instruments will vest over a period of four years and are subject to continued service.

As at March 31, 2018 and March 31, 2017, 1,11,757 and 1,06,845 incentive units were outstanding (net of forfeitures).

The break-up of employee stock compensation expenses is as follows :

in crore

Particulars

Year ended March 31,

2018

2017

Granted to

KMP(2)

(13)

36

Employees other than KMP

85

71

Total(1)

72

107

(1) Cash-settled stock compensation expense included 1 crore each in the years ended March 31, 2018 and March 31, 2017.

(2) Includes a reversal of stock compensation cost of 35 crore towards forfeiture of stock incentives granted to Dr. Vishal Sikka upon his resignation.

The carrying value of liability towards cash-settled, share-based payments was 6 crore and 3 crore as at March 31, 2018 and March 31, 2017, respectively.

The activity in the 2015 Plan (formerly 2011 RSU Plan) for equity-settled, share-based payment transactions during the years ended March 31, 2018 and March 31, 2017 is as follows :

Particulars

Year ended March 31, 2018

Year ended March 31, 2017

Shares arising out of options

Weighted average exercise price ()

Shares arising out of options

Weighted average exercise price ()

2015 Plan : Restricted Stock Units (RSUs)

Outstanding at the beginning

29,61,373

5

2,21,505

5

Granted

22,80,608

5

28,74,690

5

Exercised

6,48,217

5

1,00,760

5

Forfeited and expired

8,43,355

5

34,062

5

Outstanding at the end

37,50,409

5

29,61,373

5

Exercisable at the end

24,205

5

2015 Plan : Employee Stock Options (ESOPs)

Outstanding at the beginning

11,97,650

992

Granted

4,91,575

943

12,05,850

992

Exercised

52,412

983

Forfeited and expired

6,69,900

961

8,200

992

Outstanding at the end

9,66,913

986

11,97,650

992

Exercisable at the end

1,96,912

992

During the years ended March 31, 2018 and March 31, 2017, the weighted average share price of options exercised under the 2015 Plan on the date of exercise was 992 and 1,084, respectively.

The details of equity-settled RSUs and ESOPs outstanding as at March 31, 2018 are as follows :

Range of exercise prices per share ()

Options outstanding

No. of shares arising out of options

Weighted average remaining contractual life

Weighted average exercise price ()

2015 Plan

0-5 (RSU)

37,50,409

1.89

5.00

900-1100 (ESOP)

9,66,913

6.60

992.68

47,17,322

2.57

207.45

The details of equity-settled RSUs and ESOPs outstanding as at March 31, 2017 were as follows :

Range of exercise prices per share ()

Options outstanding

No. of shares arising out of options

Weighted average remaining contractual life

Weighted average exercise price ()

2015 Plan

0-5 (RSU)

29,61,373

1.88

5.00

900-1100 (ESOP)

11,97,650

7.09

1,026.50

41,59,023

3.38

299.16

The fair value of each equity-settled award is estimated on the date of grant using the Black-Scholes-Merton model with the following assumptions :

Particulars

For options granted during the year ended March 31, 2018

Equity shares

ADSs

RSU

ESOP

RSU

ESOP

Weighted average share price () /
($-ADS)

1,144

923

16.61

14.65

Exercise price () / ($-ADS)

5.00

919

0.08

14.67

Expected volatility (%)

20-25

25-28

21-26

25-31

Expected life of the option (years)

1-4

3-7

1-4

3-7

Expected dividends (%)

2.78

2.78

2.74

2.74

Risk-free interest rate (%)

6-7

6-7

1-2

1-2

Weighted average fair value as on grant date () / ($-ADS)

1,066

254

15.47

2.93

Particulars

For options granted during the year ended March 31, 2017

Equity shares

ADSs

RSU

ESOP

RSU

ESOP

Weighted average share price () /
($-ADS)

1,067

989

15.77

15.26

Exercise price () / ($-ADS)

5

998

0.07

15.26

Expected volatility (%)

24-29

27-29

26-29

27-31

Expected life of the option (years)

1-4

3-7

1-4

3-7

Expected dividends (%)

2.37

2.37

2.29

2.29

Risk-free interest rate (%)

6-7

6-7

1-2

1-2

Weighted average fair value as on grant date () / ($-ADS)

1,002

285

14.84

3.46

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. Expected volatility during the expected term of the RSU / ESOP 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 RSU / ESOP.

2.11 Other financial liabilities

in crore

Particulars

As at March 31,

2018

2017

Non-current

Others

Compensated absences

42

Payable for acquisition of business – Contingent consideration

13

40

Total non-current other financial liabilities

55

40

Current

Unpaid dividends

22

17

Others

Accrued compensation to employees

2,048

1,404

Accrued expenses(1)

1,776

2,013

Retention monies

63

153

Payable for acquisition of business – Contingent consideration

41

45

Capital creditors

148

36

Compensated absences

1,218

1,142

Other payables(2)

184

244

Foreign currency forward and options contracts

40

2

Total current other financial liabilities

5,540

5,056

Total financial liabilities

5,595

5,096

Financial liability carried at amortized cost

4,241

3,867

Financial liability carried at fair value through profit or loss

91

87

Financial liability carried at fair value through other comprehensive income

3

Liability towards acquisition of business on undiscounted basis

55

91

(1) Includes dues to subsidiaries
(Refer to Note 2.23)

9

3

(2) Includes dues to subsidiaries
(Refer to Note 2.23)

19

14

2.12 Trade payables

in crore

Particulars

As at March 31,

2018

2017

Trade payables(1)

738

269

Total trade payables

738

269

(1) Includes dues to subsidiaries
(Refer to Note 2.23)

178

135

As at March 31, 2018 and March 31, 2017, there are no outstanding dues to micro and small enterprises. There are no interests due or outstanding on the same.

2.13 Other liabilities

in crore

Particulars

As at March 31,

2018

2017

Non-current

Deferred income

36

42

Deferred rent

117

Total non-current other liabilities

153

42

Current

Unearned revenues

1,887

1,320

Client deposits

32

Others

Withholding taxes and others

1,029

1,027

Deferred rent

24

2

Total current other liabilities

2,972

2,349

Total other liabilities

3,125

2,391

2.14 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 for corrections of errors and support on all its fixed-price and fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded in the Statement of Profit and Loss. The Company estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence.

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

Provision for post-sales client support and others

in crore

Particulars

As at March 31,

2018

2017

Current

Others

Post-sales client support
and others

436

350

Total provisions

436

350

The movement in the provision for post-sales client support and others is as follows :

in crore

Particulars

Year ended March 31, 2018

Balance at the beginning

350

Provision recognized

130

Provision utilized

(46)

Exchange difference

2

Balance at the end

436

Provision for post-sales client support and other provisions are expected to be utilized over a period of six months to one 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 Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to securities premium.

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

in crore

Particulars

Year ended March 31,

2018

2017

Current taxes

4,003

5,068

Deferred taxes

(250)

52

Income tax expense

3,753

5,120

Advance Pricing Agreement (APA) : During the three months ended December 31, 2017, the Company had concluded an APA with the US Internal Revenue Service (IRS) for the US branch covering the years ending March 2011 to March 2021. Under the APA, the Company and the IRS have agreed on the methodology to allocate revenues and compute the taxable income of the Company’s US branch operations.

During the three months ended December 31, 2017, in accordance with the APA, the Company has reversed income tax expense provision of 1,432 crore which pertains to previous periods. This comprises reversal of current tax expense of 1,610 crore, reversal of 132 crore on account of deferred tax assets pertaining to the temporary differences which are no longer required and a deferred tax liability of 46 crore pertaining to Branch profit tax for the three months ended December 31, 2017 on account of conclusion of APA. In line with the APA, the Company has to pay an amount of approximately 1,488 crore due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. The Company has paid 479 crore during the three months ended March 31, 2018, and the balance amount is expected to be paid over the next few quarters.

Additionally, the income tax expense for the years ended March 31, 2018 and March 31, 2017 includes reversal (net of provisions) of 240 crore and 218 crore, respectively, pertaining to prior periods on account of adjudication of certain disputed matters in favor of the Company across various jurisdictions.

The ‘Tax Cuts and Jobs Act (H.R. 1)’ was signed into law on December 22, 2017 (‘US Tax Reforms’). The US tax reforms has reduced federal tax rates from 35% to 21% effective January 1, 2018, among other measures. During the year ended March 31, 2018, the US tax reforms has resulted in a positive impact of 155 crore on account of credits pertaining to deferred tax liabilities on branch profit. The impact of US tax reforms is expected to be not significant for future periods.

During the years ended March 31, 2018 and March 31, 2017, a current tax charge of 16 crore and current tax credit of 8 crore, respectively, have been recorded in other comprehensive income pertaining to remeasurement of defined benefit plan asset.

During the year ended March 31, 2018, a deferred tax credit of 13 crore and a deferred tax credit of less than 1 crore have been recorded in other comprehensive income pertaining to unrealized gains on derivatives designated as cash flow hedges and unrealized gain on investment in non-convertible debentures, certificates of deposit, commercial paper and equity and preference securities. During the year ended March 31, 2017, a deferred tax charge of 13 crore has been recorded in other comprehensive income pertaining to unrealized gains on derivatives designated as cash flow hedges

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

in crore except otherwise stated

Particulars

As at March 31,

2018

2017

Profit before income taxes

19,908

18,938

Enacted tax rates in India

34.61%

34.61%

Computed expected tax expense

6,890

6,554

Tax effect due to non-taxable income for Indian tax purposes

(2,008)

(1,915)

Overseas taxes

678

735

Tax reversals, overseas and domestic

(1,566)

(218)

Effect of exempt non-operating income

(385)

(51)

Effect of non-deductible expenses

299

16

Branch profit tax

(209)

Others

54

(1)

Income tax expense

3,753

5,120

Infosys is subject to a 15% Branch Profit Tax (BPT) in the US to the extent its US branch’s net profit during the year is greater than the increase in the net assets of the US branch during the year, computed in accordance with the Internal Revenue Code. As at March 31, 2018, Infosys’ US branch net assets amounted to approximately 5,030 crore. During the year ended March 31, 2018, an additional deferred tax liability has been created for BPT amounting to 46 crore on account of conclusion of APA explained above. Further, on account of US tax Reforms, the Company has a credit of 155 crore pertaining to BPT for the year ended March 31, 2018. The Company has also reversed 55 crore of BPT during the year ended March 31, 2018. As of March 31, 2018, the Company has a deferred tax liability for BPT of 164 crore (net of credits), as the Company estimates that these branch profits are expected to be distributed in the foreseeable future.

Other income for the year ended March 31, 2018 includes interest on income tax refund of 257 crore.

The foreign tax expense is due to income taxes payable overseas, principally in the United States. In India, the Company has benefited from certain income tax incentives that the Government of India had provided for export of software from the units registered under the Special Economic Zones Act (SEZs), 2005. SEZ units which began the provision of services on or after April 1, 2005 are eligible for a deduction of 100% of profits or gains derived from the export of services for the first five years from the financial year in which the unit commenced the provision of services and 50% of such profits or gains for further five years. Up to 50% of such profits or gains is also available for a further five years subject to creation of a Special Economic Zone Re-investment Reserve out of the profit for the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business as per the provisions of the Income tax Act, 1961.

Deferred income tax liabilities have not been recognized on temporary differences amounting to 5,045 crore and 5,309 crore as at March 31, 2018 and March 31, 2017, respectively, associated with investments in subsidiaries and branches as it is probable that the temporary differences will not reverse in the foreseeable future.

The details of income tax assets and income tax liabilities as at March 31, 2018 and March 31, 2017 are as follows :

in crore

Particulars

As at March 31,

2018

2017

Income tax assets

5,710

5,454

Current income tax liabilities

(1,976)

(3,762)

Net current income tax asset/ (liability) at the end

3,734

1,692

The gross movement in the current income tax asset / (liability) for the years ended March 31, 2018 and March 31, 2017 is as follows :

in crore

Particulars

As at March 31,

2018

2017

Net current income tax asset / (liability) at the beginning

1,692

1,716

Income tax paid

6,054

5,033

Current income tax expense

(4,003)

(5,068)

Income tax benefit arising on exercise of stock options

1

Income tax on other comprehensive income

(16)

8

Translation differences

7

2

Net current income tax asset/ (liability) at the end

3,734

1,692

The tax effects of significant temporary differences that resulted in deferred income tax assets and liabilities are as follows :

in crore

Particulars

As at March 31,

2018

2017

Deferred income tax assets

Property, plant and equipment

181

107

Computer software

40

Accrued compensation to employees

35

Trade receivables

129

123

Compensated absences

325

336

Post-sales client support

92

93

Derivative financial instruments

13

Branch profit tax

341

Others

55

32

Total deferred income tax assets

1,136

766

Deferred income tax liabilities

Branch profit tax

(505)

(327)

Derivative financial instruments

(1)

(75)

Others

(7)

(18)

Total deferred income tax liabilities

(513)

(420)

Deferred income tax assets after set-off

1,128

346

Deferred income tax liabilities after set-off

(505)

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

In assessing the reliability 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. The Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level 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 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.

The gross movement in the deferred income tax account for the years ended March 31, 2018 and March 31, 2017, is as follows :

in crore

Particulars

As at March 31,

2018

2017

Net deferred income tax asset at the beginning

346

405

Additions on account of business transfer
(Refer to Note 2.3.1)

13

Translation differences

1

6

Credits / (charge) relating to temporary differences

250

(52)

Temporary differences on other comprehensive income

13

(13)

Net deferred income tax asset at the end

623

346

The entire deferred income tax, except for a credit of 155 crore (on account of US tax reforms explained above), for the year ended March 31, 2018, relates to origination and reversal of temporary differences

The credit relating to temporary differences during the year ended March 31, 2018 is primarily on account of property, plant and equipment and trade receivables partially offset by decrease in compensated absences and accrued compensation to employees. The charge relating to temporary differences during the year ended March 31, 2017 is primarily on account of property, plant and equipment, accrued compensation and compensated absences partially offset by trade receivables.

2.16 Revenue from operations

Accounting policy

The Company derives revenues primarily from software development and related services and from the licensing of software products. Arrangements with customers for software-related services are mainly either on a fixed-price, fixed-timeframe or on a time-and-material basis.

Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the end of the last billing to the Balance Sheet date is recognized as unbilled revenues. Revenue from fixed-price, fixed-timeframe contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. Costs and earnings in excess of billings are classified as unbilled revenues while billings in excess of costs and earnings are classified as unearned revenues. Deferred contract costs are amortized over the term of the contract. Maintenance revenue is recognized rateably over the term of the underlying maintenance arrangement.

In arrangements for software development and related services and maintenance services, the Company has applied the guidance in Ind AS 18, Revenue, by applying the revenue recognition criteria for each separately identifiable component of a single transaction. The arrangements generally meet the criteria for considering software development and related services as separately identifiable components. For allocating the consideration, the Company has measured the revenue in respect of each separable component of a transaction at its fair value, in accordance with principles given in Ind AS 18. The price that is regularly charged for an item when sold separately is the best evidence of its fair value. In cases where the Company is unable to establish objective and reliable evidence of fair value for the software development and related services, the Company has used a residual method to allocate the arrangement consideration. In these cases, the balance of the consideration, after allocating the fair values of undelivered components of a transaction, has been allocated to the delivered components for which specific fair values do not exist.

License fee revenues are recognized when the general revenue recognition criteria given in Ind AS 18 are met. Arrangements to deliver software products generally have three elements : license, implementation and Annual Technical Services (ATS). The Company has applied the principles given in Ind AS 18 to account for revenues from these multiple element arrangements. Objective and reliable evidence of fair value has been established for ATS. Objective and reliable evidence of fair value is the price charged when the element is sold separately. When other services are provided in conjunction with the licensing arrangement and objective and reliable evidence of their fair values have been established, the revenue from such contracts are allocated to each component of the contract in a manner, whereby revenue is deferred for the undelivered services and the residual amounts are recognized as revenue for delivered elements. In the absence of objective and reliable evidence of fair value for implementation, the entire arrangement fee for license and implementation 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 services are performed. ATS revenue is recognized rateably over the period in which the services are rendered.

Advances received for services and products are reported as client deposits until all conditions for revenue recognition are met.

The Company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the rateable allocation of the discounts / incentives amount to each of the underlying revenue transaction that results in progress by the customer towards earning the discount / incentive. Also, when the level of discount varies with increases in levels of revenue transactions, the Company recognizes the liability based on its estimate of the customer’s future purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated reliably. The Company recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs. The discounts are passed on to the customer either as direct payments or as a reduction of payments due from the customer.

The Company presents revenues net of indirect taxes in its Statement of Profit and Loss.

Revenue from operations for the years ended March 31, 2018 and March 31, 2017 is as follows :

in crore

Particulars

Year ended March 31,

2018

2017

Revenue from software services

61,910

59,257

Revenue from software products

31

32

Total revenue from operations

61,941

59,289

2.17 Other income, net

Accounting policy

2.17.1 Other income

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 other assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.

2.17.2 Foreign currency

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 included in net profit in the Statement of Profit and Loss. 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.

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 income for the years ended March 31, 2018 and March 31, 2017 is as follows :

in crore

Particulars

Year ended March 31,

2018

2017

Interest income on financial assets carried at amortized cost

Tax-free bonds and government bonds

138

320

Deposits with banks and others

1,540

2,028

Interest income on financial assets fair valued through other comprehensive income

Non-convertible debentures, commercial paper and certificates of deposit

642

182

Income on investments carried at fair value through profit or loss

Dividend income on liquid mutual funds

3

23

Gain / (loss) on liquid mutual funds

227

111

Dividend income from subsidiary

846

Write-down of investment in subsidiary (Refer to Note 2.3)

(122)

Exchange gains / (losses) on foreign currency forward and options contracts

(12)

551

Exchange gains / (losses) on translation of assets and liabilities

265

(324)

Miscellaneous income, net

492

171

Total other income

4,019

3,062

2.18 Expenses

in crore

Particulars

Year ended March 31,

2018

2017

Employee benefit expenses

Salaries including bonus

31,618

30,111

Contribution to provident and other funds

695

640

Share-based payments to employees
(Refer to Note 2.10)

72

107

Staff welfare

87

86

32,472

30,944

Cost of software packages and others

For own use

774

729

Third-party items bought for service delivery to clients

496

506

1,270

1,235

Other expenses

Power and fuel

162

180

Brand and marketing

247

276

Operating lease payments
(Refer to Note 2.19)

328

284

Rates and taxes

116

118

Repairs and maintenance

902

1,073

Consumables

22

31

Insurance

47

45

Provision for post-sales client support

127

84

Commission to non-whole time directors

9

9

Impairment loss recognized / (reversed) on financial assets

24

140

Auditor’s remuneration

Statutory audit fees

3

2

Tax matters

1

Other services

Contributions towards Corporate Social Responsibility

142

215

Others

54

89

2,184

2,546

2.19 Leases

Accounting policy

Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in net profit in the Statement of Profit and Loss over the lease term.

The lease rentals charged during the period are as follows :

in crore

Particulars

Year ended March 31,

2018

2017

Lease rentals recognized during the period

328

284

The obligations on long-term, non-cancellable operating leases payable as per the rentals stated in the respective agreements are as follows :

in crore

Future minimum lease payable

As at March 31,

2018

2017

Not later than 1 year

267

275

Later than 1 year and not later than 5 years

877

809

Later than 5 years

755

631

The operating lease arrangements, are renewable on a periodic basis and for most of the leases extend upto a maximum of 10 years from their respective dates of inception and relates to rented premises. Some of these lease agreements have price escalation clauses.

2.20 Employee benefits

Accounting policy

2.20.1 Gratuity

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering eligible employees. 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.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the Infosys Limited Employees’ Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trust and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law.

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 are recognized in net profit in the Statement of Profit and Loss.

2.20.2 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.

2.20.3 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 to the Infosys Limited Employees’ Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government-administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

2.20.4 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.

a. Gratuity

The funded status of the gratuity plans and the amounts recognized in the Company’s financial statements as at March 31, 2018 and March 31, 2017 are as follows :

in crore

Particulars

As at March 31,

2018

2017

Change in benefit obligations

Benefit obligations at the beginning

979

826

Service cost

131

111

Interest expense

64

61

Curtailment gain

(3)

Transfer of obligation

4

(1)

Remeasurements – Actuarial (gains) / losses

(57)

61

Benefits paid

(93)

(76)

Benefit obligations at the end

1,028

979

Change in plan assets

Fair value of plan assets at the beginning

1,035

828

Interest income

69

69

Transfer of assets

4

Remeasurements – Return on plan assets excluding amounts included in interest income

11

11

Contributions

25

203

Benefits paid

(93)

(76)

Fair value of plan assets at the end

1,051

1,035

Funded status

23

56

The amounts for the years ended March 31, 2018 and March 31, 2017 recognized in the Statement of Profit and Loss under employee benefit expense are as follows :

in crore

Particulars

As at March 31,

2018

2017

Service cost

131

111

Net interest on the net defined benefit liability / asset

(5)

(8)

Curtailment gain

(3)

Net gratuity cost

126

100

The amounts for the years ended March 31, 2018 and March 31, 2017 recognized in statement of other comprehensive income are as follows :

in crore

Particulars

As at March 31,

2018

2017

Remeasurements of the net defined benefit liability / (asset)

Actuarial (gains) / losses

(57)

61

(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability /(asset)

(11)

(11)

(68)

50

in crore

Particulars

As at March 31,

2018

2017

(Gain) / loss from change in demographic assumptions

(Gain) / loss from change in financial assumptions

(36)

49

(Gain) / loss from change in experience assumptions

(21)

12

(57)

61

The weighted-average assumptions used to determine benefit obligations as at March 31, 2018 and March 31, 2017 are as follows :

Particulars

As at March 31,

2018

2017

Discount rate (%)

7.5

6.9

Weighted average rate of increase in compensation levels (%)

8.0

8.0

The weighted-average assumptions used to determine net periodic benefit cost for the years ended March 31, 2018 and March 31, 2017 are as follows :

Particulars

As at March 31,

2018

2017

Discount rate (%)

6.9

7.8

Weighted average rate of increase in compensation levels (%)

8.0

8.0

Weighted average duration of defined benefit obligation

6.1 years

6.1 years

Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life Insurance Corporation of India.

The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The discount rate is based on the government securities yield.

Sensitivity of significant assumptions used for valuation of defined benefit obligations :

in crore

Impact from percentage point increase / decrease in

As at March 31, 2018

Discount rate

58

Weighted average rate of increase in compensation level

50

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. In practice, this is not probable, and changes in some of the assumptions may be correlated.

Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined benefit gratuity plans.

The Company contributes all ascertained liabilities towards gratuity to the Infosys Limited Employees’ Gratuity Fund Trust. Trustees administer contributions made to the trust. As at March 31, 2018 and March 31, 2017, the plan assets have been primarily invested in insurer managed funds.

Actual return on assets for each of the years ended March 31, 2018 and March 31, 2017 was 80 crore.

The Company expects to contribute 110 crore to the gratuity trusts during the fiscal 2019.

Maturity profile of defined benefit obligation :

in crore

Within 1 year

144

1-2 year

151

2-3 year

165

3-4 year

176

4-5 year

186

5-10 years

928

b. Superannuation

The Company contributed 158 crore and 151 crore to the Superannuation trust during the years ended March 31, 2018 and March 31, 2017 respectively and the same has been recognized in the Statement of Profit and Loss account under the employee benefit expense.

c. Provident fund

Infosys has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions, there is no shortfall as at March 31, 2018 and March 31, 2017, respectively.

The details of fund and plan asset position are given below :

in crore

Particulars

As at March 31,

2018

2017

Plan assets at period end, at fair value

5,160

4,459

Present value of benefit obligation at period end

5,160

4,459

Asset recognized in Balance Sheet

The plan assets have been primarily invested in government securities.

Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach :

Particulars

As at March 31,

2018

2017

Government of India (GOI) bond yield

7.50%

6.90%

Remaining term to maturity of portfolio

5.9 years

6 years

Expected guaranteed interest rate

8.55%

8.60%

The Company contributed 397 crore and 378 crore during the years ended March 31, 2018 and March 31, 2017 respectively and the same has been recognized in the Statement of Profit and Loss under the employee benefit expense.

The provident plans are applicable only to employees drawing a salary in Indian rupees and there are no other significant foreign defined benefit plans.

Employee benefits costs include :

in crore

Particulars

As at March 31,

2018

2017

Salaries and bonus(1)(2)

31,791

30,315

Defined contribution plans

158

151

Defined benefit plans

523

478

32,472

30,944

(1) Includes employee stock compensation expense of 72 crore and 107 crore for the years ended March 31, 2018 and March 31, 2017, respectively (Refer to Note 2.10).

(2) Included in the above for the year ended March 31, 2018 is a reversal of stock compensation cost of 35 crore towards forfeiture of stock incentives granted to Dr. Vishal Sikka upon his resignation. (Refer to Note 2.10).

2.21 Reconciliation of basic and diluted shares used in computing earning per 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.

A reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share is as follows :

Particulars

Year ended March 31,

2018

2017

Basic earnings per equity share – weighted average number of equity shares outstanding

226,63,43,802

229,69,44,664

Effect of dilutive common equivalent shares – share options outstanding

10,48,819

2,15,006

Diluted earnings per equity share – weighted average number of equity shares and common equivalent shares outstanding

226,73,92,621

229,71,59,670

For the years ended March 31, 2018 and March 31, 2017 number of options to purchase equity shares that had an anti-dilutive effect are 27,876 and 77,942 respectively.

2.22 Contingent liabilities and commitments

in crore

Particulars

As at March 31,

2018

2017

Contingent liabilities

Claims against the Company, not acknowledged as debts(1) [Amount paid to statutory authorities 6,486 crore ( 4,694 crore)]

4,627

6,596

Commitments

Estimated amount of contracts remaining to be executed on capital contracts and not provided for (net of advances and deposits)

1,405

1,094

Other commitments(2)

36

37

(1) As at March 31, 2018, claims against the Company not acknowledged as debts in respect of income tax matters amounted to 4,461 crore. 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.

Income tax claims amounting to 4,670 crore had not been considered as claims not acknowledged as debt because the Company has received favorable decisions on similar claims and therefore, based on its assessment, is of the view that any liability resulting from these claims is remote and will not sustain on ultimate resolution.

Amount paid to statutory authorities against the above tax claims amounted to 6,475 crore.

(2) Uncalled capital pertaining to investments

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

2.23 Related party transactions

Subsidiaries

in %

Name of subsidiaries

Country

Holdings as at March 31,

2018

2017

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

China

100

100

Infosys Technologies S. de R. L. de C. V. (Infosys Mexico)

Mexico

100

100

Infosys Technologies (Sweden) AB. (Infosys Sweden)

Sweden

100

100

Infosys Technologies (Shanghai) Company Limited (Infosys Shanghai)

China

100

100

Infosys Tecnologia do Brasil Ltda. (Infosys Brasil)

Brazil

100

100

Infosys Nova Holdings LLC. (Infosys Nova)

US

100

100

EdgeVerve Systems Limited (EdgeVerve)

India

100

100

Lodestone Management Consultants GmbH (Lodestone Austria)(1)

Austria

100

100

Skava Systems Pvt. Ltd. (Skava Systems)

India

100

100

Kallidus Inc. (Kallidus)

US

100

100

Infosys Chile SpA(2)

Chile

Infosys Arabia Limited(3)

Saudi Arabia

70

Infosys Americas Inc., (Infosys Americas)

US

100

100

Infosys Technologies (Australia) Pty. Limited (Infosys Australia)(4)

Australia

100

100

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

US

100

100

Infosys Canada Public Services Ltd.(5)(6)

Canada

Infosys BPM Limited (formerly Infosys BPO Limited)

India

99.98

99.98

Infosys (Czech Republic) Limited s.r.o.(7)

Czech Republic

99.98

99.98

Infosys Poland, Sp z.o.o(7)

Poland

99.98

99.98

Infosys McCamish Systems LLC(7)

US

99.98

99.98

Portland Group Pty Ltd(7)

Australia

99.98

99.98

Infosys BPO Americas LLC.(7)

US

99.98

99.98

Infosys Consulting Holding AG (Infosys Lodestone)

Switzerland

100

100

Lodestone Management Consultants Inc.(4)(8)

US

100

100

Infosys Management Consulting Pty Limited(8)

Australia

100

100

Infosys Consulting AG(8)

Switzerland

100

100

Infosys Consulting GmbH(8)

Germany

100

100

Infosys Consulting SAS(8)

France

100

100

Infosys Consulting s.r.o.(8)

Czech Republic

100

100

Lodestone Management Consultants Co., Ltd.(8)

China

100

100

Infy Consulting Company Ltd(8)

UK

100

100

Infy Consulting B.V.(8)

The Netherlands

100

100

Infosys Consulting Sp. z.o.o(8)

Poland

100

100

Lodestone Management Consultants Portugal, Unipessoal, Lda.(8)

Portugal

100

100

S.C. Infosys Consulting S.R.L.(8)

Romania

100

100

Infosys Consulting S.R.L.(8)

Argentina

100

100

Lodestone GmbH(8)(9)

Switzerland

Lodestone Augmentis AG (10)(11)

Switzerland

Infosys Consulting (Belgium) NV
(formerly Lodestone Management Consultants (Belgium) S.A.)(12)

Belgium

99.90

99.90

Infosys Consulting Ltda.(12)

Brazil

99.99

99.99

Panaya Inc. (Panaya)

US

100

100

Panaya Ltd.(13)

Israel

100

100

Panaya GmbH(13)

Germany

100

100

Panaya Japan Co. Ltd(4)(13)

Japan

100

100

Panaya Pty Ltd.(13)(14)

Australia

Noah Consulting LLC (Noah)(15)

US

100

Noah Information Management Consulting Inc. (Noah Canada)(16)(17)

Canada

100

Brilliant Basics Holdings Limited(18)

UK

100

Brilliant Basics Limited(19)

UK

100

Brilliant Basics (MENA) DMCC(19)

Dubai

100

Infosys Consulting Pte Limited(1)

Singapore

100

100

Infosys Middle East FZ LLC(20)

Dubai

100

(1) Wholly-owned subsidiary of Infosys Limited

(2) Incorporated effective November 20, 2017

(3) Subsidiary of Infosys Limited

(4) Under liquidation

(5) Wholly-owned subsidiary of Infosys Public Services, Inc.

(6) Liquidated effective May 9, 2017

(7) Wholly-owned subsidiary of Infosys BPM

(8) Wholly-owned subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)

(9) Liquidated effective December 21, 2016

(10) Wholly-owned subsidiary of Infosys Consulting AG (formerly Lodestone Management Consultants AG)

(11) Liquidated effective October 5, 2016

(12) Majority owned and controlled subsidiaries of Infosys Consulting Holding AG (formerly Lodestone Holding AG)

(13) Wholly-owned subsidiary of Panaya Inc.

(14) Liquidated effective November 16, 2016

(15) Liquidated effective November 9, 2017 (Refer to Note 2.3.1)

(16) Wholly-owned subsidiary of Noah

(17) Liquidated effective December 20, 2017

(18) On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited, UK.

(19) Wholly-owned subsidiary of Brilliant Basics Holdings Limited.

(20) Wholly-owned subsidiary of Infosys Consulting Pte Ltd

Infosys has provided guarantee for performance of certain contracts entered into by its subsidiaries.

Associate

Name of associate

Country

Holdings as at March 31,

2018

2017

DWA Nova LLC(1)

US

16%

(1) During the three months ended June 30, 2017, the Company has written down the entire carrying value of the investment in its associate DWA Nova LLC. DWA Nova LLC has been liquidated effective November 17, 2017.

List of other related parties

Particulars

Country

Nature of relationship

Infosys Limited Employees’ Gratuity Fund Trust

India

Post-employment benefit plan of Infosys

Infosys Limited Employees’ Provident Fund Trust

India

Post-employment benefit plan of Infosys

Infosys Limited Employees’ Superannuation Fund Trust

India

Post-employment benefit plan of Infosys

Infosys Employees’ Welfare Trust

India

Controlled trust

Infosys Employee Benefits Trust

India

Controlled trust

Infosys Science Foundation

India

Controlled trust

Refer to Note 2.20 for information on transactions with post-employment benefit plans mentioned above.

List of key managerial personnel

Whole-time directors

  • Salil Parekh appointed as the Chief Executive Officer and Managing Director (CEO & MD) effective January 2, 2018. The appointment is for a term of 5 years with effect from January 2, 2018 to January 1, 2023 and the remuneration is approved by the shareholders through a postal ballot dated February 20, 2018.
  • U.B. Pravin Rao, Chief Operating Officer appointed as interim-CEO & MD effective August 18, 2017. Subsequently, he stepped down as the interim-CEO & MD effective January 2, 2018 and will continue as Chief Operating Officer and a whole-time director of the Company.
  • Dr. Vishal Sikka resigned as Chief Executive Officer and Managing Director effective August 18, 2017 and as Executive Vice Chairman effective August 24, 2017

    Non-whole-time directors

  • Nandan M. Nilekani (appointed as Chairman of the Board effective August 24, 2017)
  • Ravi Venkatesan (resigned from his position as Co-Chairman effective August 24, 2017)
  • Kiran Mazumdar-Shaw
  • Roopa Kudva
  • Dr. Punita Kumar-Sinha
  • D.N. Prahlad (appointed effective October 14, 2016)
  • D. Sundaram (appointed effective July 14, 2017)
  • R. Seshasayee (resigned effective August 24, 2017)
  • Prof. Jeffrey S. Lehman, (resigned effective August 24, 2017)
  • Prof. John W. Etchemendy (resigned effective August 24, 2017)

    Executive officers

M.D. Ranganath

Chief Financial Officer

David D. Kennedy

General Counsel and Chief Compliance Officer (resigned effective December 31, 2016)

Ravi Kumar S.

President and Deputy Chief Operating Officer (appointed effective October 13, 2016)

Rajesh K. Murthy

President (appointed effective October 13, 2016 and resigned effective January 31, 2018)

Sandeep Dadlani

President (appointed effective October 13, 2016 and resigned effective July 14, 2017)

Mohit Joshi

President (appointed effective October 13, 2016)

Krishnamurthy Shankar

Group Head - Human Resources and Infosys Leadership Institute (appointed effective October 13, 2016)

Gopi Krishnan Radhakrishnan

Acting General Counsel (appointed effective January 1, 2017 and resigned effective June 24, 2017)

Inderpreet Sawhney

Group General Counsel and
Chief Compliance Officer (appointed effective July 14, 2017)

Company Secretary

A.G.S. Manikantha

The details of amounts due to or due from related parties as at March 31, 2018 and March 31, 2017 are as follows :

in crore

Particulars

As at March 31,

2018

2017

Investment in debentures

EdgeVerve(1)

1,780

2,129

1,780

2,129

Trade receivables

Infosys China

29

41

Infosys Mexico

4

2

Infosys Brasil

1

1

Infosys BPM

5

5

Infy Consulting Company Ltd.

77

73

Infosys Public Services

53

61

Infosys Shanghai

7

Infosys Sweden

1

1

Kallidus

13

6

Infosys McCamish Systems LLC

70

1

Panaya Ltd

75

44

335

235

Loans

Infosys China(2)

73

69

Infosys Consulting Holding AG(3)

104

Brilliant Basics Holdings Limited(4)

8

185

69

Prepaid expense and other assets

Panaya Ltd.

114

56

Brilliant Basics Limited

1

115

56

Other financial assets

Infosys BPM

10

5

Panaya Ltd.

2

1

Infosys Consulting SAS

3

Infosys Consulting GmbH

1

1

Infosys China

2